WORLD TRADE  
ORGANIZATION  WT/REG230/1 
23 April 2008 
 
 (08-1946) 
Committee on Regional Trade Agreements  
  
 
    
 
FACTUAL PRESENTATION 
 
Free Trade Agreement 
Between 
Chile and China 
(Goods) 
 
Report By The Secretariat 
 
 
 
This report, prepared for the consideration of the Free Trade Agreement between Chile and China has been drawn up by th e WTO Secretariat on its own responsibility 
and in full consultation with the Parties.  The report has been drawn up in 
accordance with the rules and procedures contained in the Decision for a 
Transparency Mechanism for Regional Trad e Agreements (document WT/L/671).   
 Any technical questions arising from this report may be addressed to Ms. Jo-Ann Crawford (tel:  +41 22/739 5422). WT/REG230/1 
Page iii 
 
 
  TABLE OF CONTENTS 
 
 
Page 
 
I. TRADE ENVIRONMENT 1  
A. M ERCHANDISE TRADE  1 
II. TREATY CHARACTER ISTIC ELEMENTS 4  
A. B ACKGROUND INFORMATION  4 
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 4  
1. Import duties and charges, and quantitative restrictions 4  
(a) General provisions  4 
(b) Liberalization of tariff lines and trade  5 
(c) Chile's liberalization schedule  6 
(d) China's liberalization schedule  8 
A. R ULES OF ORIGIN  9 
B. E XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  10 
C. R EGULATORY PROVISIONS OF THE AGREEMENT  10 
1. Standards 10  
(a) Technical barriers to trade  10 
(b) Sanitary and phytosanitary measures  11 
2. Safeguard mechanisms 11  
(a) Global Safeguard Measures  11 
(b) Bilateral safeguards  11 
(c) Restrictions to safeguard balance of payments  12 
3. Anti-dumping 12  
4. Subsidies, state-aid and countervailing measures 12  
5. Other regulations 12  
(a) Customs-related procedures  12 
(b) Transparency  13 
IV. PROVISIONS AFFECTING TRADE IN GOODS 13  
A. I NTELLECTUAL PROPERTY  13 
B. L ABOUR AND ENVIRONMENTAL COOPERATION  13 
C. S ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  14 
D. I NSTITUTIONAL PROVISIONS OF THE AGREEMENT  14 
1. Exceptions and reservations 14  
2. Accession 14  
3. Institutional framework 14  
4. Dispute settlement 14  
5. Relationship with other agreements concluded by the Parties 16  
ANNEX  18 
 
  
 WT/REG230/1 
Page 1 
 
 
  FREE TRADE AGREEMENT BETWEEN  
CHILE AND CHINA (GOODS) 
 
Factual Presentation by the Secretariat  
 
 
I. TRADE ENVIRONMENT  
A. MERCHANDISE TRADE  
1. The Free Trade Agreement between the Republic of Chile and the People's Republic of China 
(hereafter "the Agreement") is China's first fre e trade agreement (FTA) with a Latin American 
country and, at the time of notification, the ninth FTA Chile had notified to the WTO.  Of the Parties, 
Chile ranked as the world's 40th top exporter and 47th top importer in 2006 in terms of merchandise 
trade, while for the same y ear China was the world's 3rd largest exporter and importer.  In the period 
2004-2006, Chile's trade to GDP ratio was 73.2, while China's was 69.0. 
2. Developments in recent years in global and intr a trade between the Parties are pictured in 
Charts I.1 and I.2.  Over the period surveyed (1998-2005), trade between the Parties has grown 
steadily.  From 2001 to 2005, Chile shows a growing trade surplus with China.  
0510152025303540
1998 1999 2000 2001 2002 2003 2004 2005012345678US$billion US$billionChart I.1 - Chile: Merchandise im ports from and exports to world 
and China, 1998-2005
Source: UNSD, Comtrade database.Imports from China
Exports to ChinaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
    
 WT/REG230/1 
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  0100200300400500600700800
1998 1999 2000 2001 2002 2003 2004 2005012345678US$billion US$billionChart I.2 - China: Merchandise imports from and exports to world 
and Chile, 1998-2005
Source: UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
3. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2003-2005, is shown in Chart I.3, on the basis of Harmonized System (HS) 
sections. 
4. Three product categories (base metals, minerals and wood pulp) accounted for more than 89% 
of China's imports from Chile; prepared foods and chemicals accounted for a further 6.9%.  Chile's 
four largest export product categories – base meta ls, minerals, animals a nd vegetables – made up 
69.7% of its total exports in 200 3-2005 and accounted for 83.3% of China's imports from Chile in the 
same period. 
5. As to Chile's imports from China in the peri od 2003-2005, more than 74% were classified 
under four product categories (machinery, textiles, footwear and miscellaneous articles).  China's 
four largest export product categories – machinery, textiles, base metals, and miscellaneous articles – 
made up 69.5% of its total expor ts in 2003-2005 and accounted for 69.9% of Chile's imports from 
China in the same period. 
  WT/REG230/1 
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  Chart I.3
Chile and China: product composition of merchandise  trade, annual average 
(2003-05)
Chile's imports from China China's imports from Chile
 Source:  UNSD, Comtrade database.Per cent
Total:  US$1.9 billion Total:  US$3.7 billion
Total:  US$23.2 billion Total: US$544.7 billion
Total:  US$29.9 billion Total:  US$597.9 billionChile's global exportsChina's global exportsChile's global imports China's global importsOther
4.3
Machinery  
28.7Other 
3.2
Prepared foods 2.8Other 
7.8
Machinery
41.6
Chemicals 
7.6Plastics 5.9Other
9.1
Minerals
22.9Machinery
23.4
Vehicles 11.2Chemicals 
9.3Textiles 4.7
Base metals 8.8Plastics 5.6
Minerals 23.1Other 
7.9Other 
8.1
Textiles 15.0Base metals 31.0
Prepared foods  6.9
Base metals 7.0Minerals 2.8Machinery 
41.4
Vehicles  3.6
Chemicals  4.2Textiles 
28.2
Minerals 
12.1Optical  7.3
Base metals 
5.8
Optical 3.4Plastics 4.1
Base metals 4.6
Miscellaneous 8.4
Chemicals 5.2Optical 2.0
Plastics 2.9
Articles of wood 5.2Raw Hides 2.7
Pulp of wood 8.7
Footwear 9.2
Vegetables 2.0
Miscellaneous 6.1Pulp of wood 2.4
Animals 8.0Vegetables 7.6Chemicals 4.9Optical 2.8Vehicles 2.1
Base metals
49.8
Minerals 31.3Prepared foods 4.2Chemicals 2.7
Textiles 4.0Vehicles 3.5
Pulp of wood 5.0
Footwear 3.2Raw Hides 2.3
 
 WT/REG230/1 
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  II. TREATY CHARACTERISTIC ELEMENTS 
 
A. B
ACKGROUND INFORMATION  
6. The Free Trade Agreement was signed by  the Governments of Chile and China on 
18 November 2005 and entered into force on 1 Octobe r 2006.  The Agreement is of an indefinite 
duration. 
7. The Agreement was notified to the WTO by the Parties on 20 June 2007 under 
Article XXIV:7(a) of the GATT 1994.  The text is ava ilable, together with its Annexes, on the Parties' 
official websites.1 
 
8. The Agreement is composed of 14 Chapters, as follows: 
Box II.1:  Table of cont ents of the Agreement  
 Chapter I Initial Provisions 
 Chapter II General Definitions 
 Chapter III National Treatment  and Market Access for Goods 
 Chapter IV Rules of Origin 
 Chapter V Procedures Related to Rules of Origin 
 Chapter VI Trade Remedies  Chapter VII Sanitary and Phytosanitary Measures 
 Chapter VIII Technical Barriers to Trade 
 Chapter IX Transparency  Chapter X Dispute Settlement 
 Chapter XI Administration 
 Chapter XII Exceptions  Chapter XIII Cooperation 
 Chapter XIV Final Provisions  
 
9. The Agreement has eight annexes which contain the following:  elimination of import 
customs duties;  list of geographical indications;  product specific rules;  certificate of origin;  
competent governmental authorities of Chile;  mode l of certification and verification networking 
system on certificate of origin;  rules of procedure of arbitral panel;  and implementation of modifications approved by the Commission. 
10. The Agreement contains no explicit transition pe riod:  tariff elimination on imports of goods 
for both Parties is to be completed within a period of ten years, i.e. by 1 January 2015.  Duty reductions take place on the date of entry into force of the Agreement and on 1 January of the 
following years. 
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
11. The Parties agree to accord national treatment  to each others' goods in accordance with 
Article III of the GATT 1994 (Article 7 of the Agreement). 
                                                     
 
1 Chile - http://www.direcon.cl/documentos/Chin a2/tlc_chile_china_ing_junio_2006.pdf ;  China -
http://gjs.mofcom.gov.cn/aarticle/af/ad/200511/20051100818098.html   WT/REG230/1 
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  12. Market access provisions for the progressive elimination of customs duties are addressed in 
Sections 1 and 2 of Annex 1, for Chile and Chin a, respectively.  Tariff liberalization covers 
Chapters 1-97 of the Harmonized System (HS).  In  the case of Chile, the Agreement provides for the 
elimination of duties on imports of certain goods origin ating in China on the date of entry into force.  
A second list contains products that are subject to a phased elimination of duty in five annual stages 
while for a third list duties are eliminated in ten a nnual stages.  A fourth list contains those products 
not subject to concessions.  In the case of China,  customs duties on certain products originating in 
Chile are eliminated on the date of entry into fo rce of the Agreement, and in years 2, 5 and 10 
following the entry into force of the Agreement.2  A fifth list contains those products not subject to 
concessions. 
13. Article 8.1 prohibits the Parties from increasing any existing, or adopting any new, customs 
duty on imports.  If a Party reduces its MFN rate3 after the entry into force of the Agreement and 
before the end of the tariff elimination period, the tariff elimination schedule of that Party shall apply 
to the reduced rate (Article 8.3). 
14. In accordance with Article 8.4, upon request the Parties agree to consult each other to 
consider the possibility of accelerating th e elimination of customs duties.   
(b) Liberalization of tariff lines and trade4 
15. The elimination of tariffs applicable between the Parties is detailed in their corresponding 
schedules.  Tariff elimination began on the date of entry into force of the Agreement, i.e. 1 October 
2006;  subsequent reductions or elim inations of duties take place on 1 January of following years.  
The base rate used for tariff reductions is  the MFN rate applicable in 2006.   
16. The overall tariff elimination under the Agreem ent is depicted in Tables III.1A and III.1B 
below.5  In the case of Chile, 0.4% of total tariff lines were already duty-free on an MFN basis in 
2006.6  A further 74.1% of tariff lines became duty-free for imports from China in 2006;  in terms of 
imports from China for the period 2003-2005, these fi gures amount to zero and 50.7%, respectively.  
By the end of the transition period in 2015, a further 23.6% of tariff lines are to be liberalized, 
accounting for 46.2% of imports from China for the period 2003-2005.  Thus, a total of 98.1% of 
tariff lines are liberalized under th e Agreement, corresponding to 96.9% of imports by value from 
China for the period 2003-2005. 
Table III.1A 
Chile:  Tariff elimination commitments under the Agree ment and corresponding average trade values for 2003-05 
Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from China (2003-2005) 
in million US$ % of Chile's total 
imports from China 
2003-2005 
MFN duty free 
(2006) 35 0.4 - - 
2006 5,856 74.1 958.8 50.7 
2010 1,048 13.3 382.7 20.2 
Table III.1A (Cont'd) 
                                                      
2 Given that the Agreement entered into force in October 2006, year 2 means January 2007. 
3 This does not apply in the case of the interim duty rate referred to in Article 4 and 9 of Regulation on 
Import and Export Tariff of the People's Republic of China. 
4 Unless otherwise specified, all statistics, tables and charts contained in this document have been 
prepared on the basis of data  provided by the Parties. 
5 Tariff lines containing in-quota duties are ex cluded from all the tari ff-related calculations. 
6 Chile's tariff is composed of 7,902 tariff lines at the HS 8-digit level, of which 7,894 contain 
ad valorem  rates;  the remaining ei ght lines are composed of ad valorem  and specific duties.   WT/REG230/1 
Page 6  
 
  Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from China (2003-2005) 
in million US$ % of Chile's total 
imports from China 
2003-2005 
2015 811 10.3 492.1 26.0 
Remain dutiable 152 1.9 58.1 3.1 
Total 7,902  100.0 1,891.8 100.0 
Source:  WTO Secretariat based on data provided by Ch ile;  trade data taken from IDB submissions. 
 
17. In the case of China, 8.5% of total tariff lin es were already duty-free on an MFN basis in 
2006.7  A further 28.8% of tariff lines became duty-free for imports from Chile in 2006;  in terms of 
imports from Chile for the period 2003-2005, these fi gures amount to 38.9 and 50.9%, respectively.  
By the end of the transition period in 2015, a further 59.9% of tariff lines are to be liberalized, 
accounting for a further 9.3% of imports from Chile for the period 2003-2005.  Thus, a total of 97.2% 
of tariff lines are liberalized under the Agreement,  corresponding to 99.1% of imports by value from 
Chile for the period 2003-2005. 
Table III.1B 
China:  Tariff elimination commitments under the Agreement and corresponding average trade 
Duty phase-out 
period Number of lines % of total lines in 
China's tariff schedule Value of China's imports 
from Chile (2003-2005) 
in million US$ % of China's total 
imports from Chile 
2003-2005 
MFN duty free 
(2006) 647 8.5 1,378.0 38.9 
2006 2,187 28.8 1,800.8 50.9 
2007 1,960 25.8 0.4 0.0 
2010 975 12.8 14.8 0.4 
2015 1,622 21.3 313.4 8.9 
Remain dutiable 214 2.8 30.5 0.9 
Total 7,605  100.0 3,537.9 100.0 
Source: WTO Secretariat based on data provided by China. 
 
(c) Chile's liberalization schedule 
18. The base rates used by Chile for implementi ng its tariff liberalization scheme provided for 
less than 1% of tariff lines being duty free before th e entry into force of the Agreement.  As can be 
seen from Chart III.1, upon entry into force over 5,8 00 lines subject to MFN rates of 6% were freed of 
duties.  Further reductions of duti es take place in 2010 and 2015.   
 
  
 
 
                                                     
 
7 China's tariff is composed of 7,605 tariff lines at the HS 8-digit level, of which 7,556 are subject to 
ad valorem  rates.  For the 49 lines subject to specific duties, China has provided ad valorem  equivalent rates.  
Such lines occur in HS Chapters 2, 5, 37, and 85.  WT/REG230/1 
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  0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,0002006200720082009201020112012201320142015Chart III.1
Chile's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Chile.Number of duty-free lines (cumulative)
Duty-free <10% <30% MFN is:
 
 
19. Table III.2 shows Chile's trade liberalization commitments under the Agreement on the basis 
of products' treatment at the HS 8-digit level orga nized by HS section product categories.  Of the 
7,902 tariff lines forming Chile's tariff schedule, 35 tariff lines were already MFN duty-free in 2006;  an additional 5,856 lines covering prod ucts in all HS sections were liber alized upon entry into force of 
the Agreement.  In 2010, an additional 1,048 lines ar e subject to liberalization, followed by a further 
811 lines in 2015.  Of the 152 lines which remain subj ect to duties, some are agricultural products, 
while the bulk of the rest are tex tiles, base metals and machinery. 
Table III.2 
Chile: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines under the 
Agreement in: HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
duty 
free 2006  2010  2015  Remain 
dutiable  
I Live animals and animal products 6.3 567  567    
II Vegetable products 6.0 397  375 11 3 8 
III Animal or vegetable fats and oils 6.0 65  36 29   
IV Prepared food etc. 6.0 398  378 3  17 
V Minerals 6.0 191  186  3 2 
VI Chemical and products 6.0 1,190  1,094 50 46  
VII Plastics and rubber 6.0 307  204 42 54 7 
VIII Hides and skins 6.0 86  48 38   
IX Wood and articles 6.0 142  84 1 57  
X Pulp, paper etc. 5.9 235 4 56 20 155  
XI Textile and textile ar ticles 6.0 1,171  251 531 323 66 
XII Footwear, headgear 6.0 115  29 86   
XIII Articles of stone 6.0 180  44 93 39 4 
XIV Precious stones, etc. 6.0 59  58 1   
XV Base metals and  products 6.0 657  539 31 56 31 
XVI Machinery 6.0 1,266 2 1,209 7 31 17 
Table III.2 (Cont'd)  WT/REG230/1 
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  Number of duty-free lines under the 
Agreement in: HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
duty 
free 2006  2010  2015  Remain 
dutiable  
XVII Transport equipment 5.5 343 29 234 58 22  
XVIII Precision equipment 6.0 290  286 4   
XIX Arms and ammunition 6.0 23  23    
XX Misc. manufactured articles 6.0 213  148 43 22  
XXI Works of art, etc. 6.0 7  7    
Total 6.0 7,902 35 5,856 1,048 811 152 
Source:  Data provided by Chile. 
(d) China's liberalization schedule 
20. The base rates used by China for implemen ting its tariff liberalization scheme already 
provided for 8.5% of tariff lines being duty free before the entry into force of the Agreement.  As can be seen from Chart III.2, all of the additional 28.8% of tariff lines freed upon entry into force held 
base rates of 10% or less.  Further eliminations  of duties take place in 2007, 2009, 2010 and 2015 
with the bulk of lines subject to higher MFN duties liberalized in 2010 or 2015.   
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,5002006200720082009201020112012201320142015Chart III.2
China's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by China.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% >50% MFN is:
 
 
21. Table III.3 shows China's trade liberalizati on commitments under the Agreement at the 
HS-digit level organized by HS section product categori es.  Of the 7,605 lines forming China's tariff 
schedule, 647 lines were already MFN duty-free in 2006;  an additional 2,187 tariff lines were liberalized upon entry into force of the Agreemen t (comprising both agricultural and industrial 
products).  A total of 214 tariff lines covering ag ricultural products, chemicals, wood products, pulp 
and paper, and textiles are not liberalized under the Agreement.   WT/REG230/1 
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  Table III.3 
China: Tariff elimination under the Agreement, by HS section 
Number  of duty-free lines under the 
Agreement in: HS section and description MFN 
average
% Total 
No of 
lines MFN 
duty 
free 2006  2007  2010  2015  Remain 
dutiable 
I Live animals and animal products 12.4 368 43 12 55 116 142  
II Vegetable products 14.4 463 54 71 142 85 86 25 
III Animal or vegetable fats and oils 15.0 53  3 8 12 11 19 
IV Prepared food etc. 17.9 279 1 36 40 58 138 6 
V Minerals 3.7 202 37 119  8 38  
VI Chemical and products 7.0 1,186 9 732 71 65 305 4 
VII Plastics and rubber 9.8 262 1 84 57 26 94  
VIII Hides and skins 12.5 108  30 23 42 13  
IX Wood and articles 4.1 160 65 10 27 14 19 25 
X Pulp, paper etc. 5.4 165 34 3   4 124 
XI Textile and textile ar ticles 11.6 1,106  233 861  1 11 
XII Footwear, headgear 18.6 60   55  5  
XIII Articles of stone 13.6 175 1 26 28 77 43  
XIV Precious stones, etc. 10.0 84 32 21  19 12  
XV Base metals and  products 7.5 706 4 374 77 78 173  
XVI Machinery 8.4 1,376 258 277 274 173 394  
XVII Transport equipment 12.8 318 1 81 198 6 32  
XVIII Precision equipment 10.0 326 43 74 38 108 63  
XIX Arms and ammunition 13.0 21    18 3  
XX Misc. manufactured articles 11.6 178 62  6 66 44  
XXI Works of art, etc. 9.6 9 2 1  4 2  
Total 9.9 7,605 647 2,187 1,960 975 1,622 214 
 
Source: WTO estimates based on data provided by China . 
 
A. RULES OF ORIGIN  
22. Disciplines regarding rules of origin are set out in Chapter IV of the Agreement.  Article 29 
defines the terms used and Articles 15-28 provide th e substantive rules.  The procedures designed to 
administer and enforce the rules of origin are set out in Chapter V. 
23. A good is considered as originating when (Article 15): 
 (a) it is wholly obtained or produced in the territory of the Parties;8  or 
 
 (b) it is produced entirely in the territory  of one or both Parties, exclusively from 
materials whose origin conforms to the provisions of Chapter IV;  or 
  (c) the good is produced in the territory of  one or both Parties, using non-originating 
materials that conform to a regional valu e content (RVC) not less than 40%, except 
for the goods listed in Annex 3, which must comply with the requirements specified 
therein.  
 24. The specific rules in Annex 3 call for a cha nge of Chapter for most agricultural goods 
(HS Chapters 1-16 and 22);  for a change of HS  heading level (4-digit) for sugars, cocoa and 
preparations of cereals (Chapters 17-19), and for a RVC of 50% for all goods in Chapters 20-21, 
23-26, 32, 34-35, 44, 48-49, 51, 54-64, and 93-94.  In addition, an RVC of 50% is required for a 
                                                     
 
 8 This concept applies to goods that are entirely ex tracted from the soil or s eabed, harvested, born and 
raised, and fished or hunted in the territory of a Party;   fishery goods taken from the territorial sea or the 
exclusive economic zones of the Parties, or beyond the ex clusive economic zone by a vessel flying the flag of 
the Parties;  manufactured on board a f actory ship flying the flag of one of th e Parties;  used articles collected in 
the Parties fit only for the recovery of raw materials;  waste and scrap resulting from manufacturing operations;  products extracted from or beneath the seabed outside the territorial sea of the Parties, provided that they have 
sole rights to exploit such seabed, or manufactured exclusively from the foregoing products.  WT/REG230/1 
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  number of headings or subheadings, in th e case of the following products:  chemicals, 
pharmaceuticals, fertilizers, essential oils, explosives, plastics, rubber, cotton, glass, iron and steel, 
copper, aluminium, machinery and mechanical applia nces, vehicles, ships, musical instruments, and 
toys and games.
9 
25. The regional value content requirement estab lishes the minimum value of originating 
materials needed in the final product for it to be granted originating status, expressed as a percentage 
of the F.O.B. value of the product. 
26. Article 21 establishes a de minimis principle whereby a good can still qualify as originating 
even if the non-originating materials incorporated therein do not meet the criteria of Annex 3, provided that the value of the non-originating goods does not exceed 8% of the F.O.B. value of the 
good.   
27. Bilateral cumulation is allowed under the Agreemen t (Article 20) i.e., cumulation in terms of 
materials between the Parties. 
28. Article 19 lays down a list of insufficient work ing or processing operations carried out in the 
territory of the Parties that do not confer origin .  Articles 23-26 deal with how certain materials 
(accessories, spare parts and tools, packaging, and ne utral elements such as energy) are to be treated 
or valued when determining the origin of the good s.  Article 27 deals with the transport of goods 
through third parties.   
Box III.1:  Rules of Origin:  Basic Features at a Glance 
• No single rule of origin methodology.   
• Product specific criteria: 
-  Wholly obtained or entirely produced goods 
-  For most agricultural goods, a change of HS Chapter applies (for Ch. 17-19 a change of heading is 
required). -  In 49 HS Chapters, a RVC of 50% applies (either to the entire Chapter, selected headings or 
subheadings). 
- If no product specific rule, th en a RVC of 40% applies.   
• Bilateral cumulation. 
• Tolerance rule:  non-originating materials can represent a maximum of 8% of adjusted value of product.    
• Transit through third parties authorized only under certain conditions. 
B. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
29. There are no provisions on export duties and charges in the Agreement. 
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Technical barriers to trade 
30. Chapter VIII lays down the provisions applying to standards and techni cal regulations.  The 
Parties reaffirm their existing rights and oblig ations with respect to each other under the 
WTO Agreement on Technical Barriers to Trade  and agree to use international standards or relevant 
parts thereof as the basis for their technical regula tions and related conformity assessment procedures.    
                                                      
9 HS Chapters 28-31, 33, 36, 39, 40, 52, 69, 70, 72-74, 76, 83-85, 87, 89, 92, and 95.  WT/REG230/1 
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  Article 64 provides for trade facilitation measures including feasibility studies for a mutual 
recognition agreement, notification of the list of  products subject to compulsory conformity 
assessment procedures, and the exchange of in formation regarding products subject to an 
authorization process.  Article 67 provides for a range of measures to improve transparency of 
technical regulations including electronic transmission of proposals to the other Party's inquiry point, 
and a minimum 60 day period for the submission of comments on any proposal.  In Article 69, the 
Parties agree to establish a Committee on Technical Barriers to Trade to m onitor the implementation 
and administration the provisions of Chapter VIII.  The Committee meets at least once a year unless agreed otherwise by the Parties.   
(b) Sanitary and phytosanitary measures 
31. Chapter VII lays down the provisions applying to sanitary and phytosanitary measures.  In 
Article 56 the Parties reaffirm their existing righ ts and obligations under the WTO Agreement on the 
Application of SPS Measures.   With regard to transparency, they agree to the full implementation of 
Article 7 of the SPS Agreement and to the excha nge of information related to sanitary and 
phytosanitary conditions in their territories.  Artic le 58 provides for the establishment of a Committee 
on Sanitary and Phytosanitary matters composed of  each Party's representatives within a year of the 
Agreement's entry into force.  The Committee will meet at least once a year unless the Parties agree 
otherwise.   
2. Safeguard mechanisms 
(a) Global Safeguard Measures 
32. According to Article 51, the Parties retain th eir rights and obligations under Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards.  A global safeguard measure is not subject to 
the provisions for dispute settleme nt outlined in the Agreement. 
(b) Bilateral safeguards 
33. Articles 44-49 set out the rules that apply to the imposition of a bilateral safeguard measure.  
A Party may impose a bilateral safeguard measure  on a product benefiting from preferential tariff 
treatment under the Agreement if there is an incr ease in imports in absolute terms or relative to 
domestic production which constitutes a substantial cause of serious injury or threat thereof to the 
domestic industry of the importing Party pr oducing a like or directly competitive good.
10  Disciplines 
regarding the application of such measures incl ude an investigation by the Party's competent 
authorities prior to its application;  its scope  and duration;  consultation procedures;  and 
compensation.  The conditions applicable to the use of bilateral safeguards are detailed in Table III.4. 
Table III.4  Conditions applied to the application of bilateral safeguards 
Requirements Specific Conditions 
Precondition Rise in imports In absolute term s or relative to domestic production 
Criteria  Serious injury or actual threat thereof to 
the domestic industry 9  
Measures allowed Suspension of further duty reduction, or 9 
 Increase in duty rate  MFN rate in effect when measure was taken, or MFN rate in effect 
on date of entry into force of th e Agreement, whichever is lower 
Table III.4 (Cont'd) 
                                                      
10 "Serious injury" is defined in Article 50 of the Ag reement as "a significant overall impairment in the 
position of a domestic industry". WT/REG230/1 
Page 12  
 
  Requirements Specific Conditions 
Timing Maximum duration, including extension  1 year plus 1 year extension 
 Safeguard measure may be applied  
during the transition period of the good 
concerned   Measures to be terminated at the end of the transition period, i.e.  
three years from date of entry into  force of the Agreement, except in 
case of a product with a liberalization process of five or more years, 
where the transition period will end when product reaches zero tariff. 
Conditions or 
limitations  Information of the institution of a 
proceeding through written notice In accordance with Article 3 of the WTO Agreement on Safeguards  
 Consultation 9 
 Prior investigation  9 
 Compensation  Immediate compensation.  Retaliation only after a year from the 
imposition of the safeguard measure. 
 Possibility to impose a safeguard 
measure more than once on the same 
product  Only valid in the case of products  for which the transition period is 
more than five years. 
Source: WTO Secretariat. 
 
(c) Restrictions to safeguard balance of payments 
34. In accordance with Article 102, where a Party is in serious balance of payments and external 
financial difficulties or threat thereof, it may adopt  measures deemed necessary in accordance with the 
WTO Agreement and consistent with the Articles of  Agreement of the International Monetary Fund. 
3. Anti-dumping  
35. Under Article 52 of the Agreement, the Parties ma intain their rights and obligations under the 
WTO Agreement on the Implementation of Article VI of the GATT 1994.  Antidumping actions taken 
pursuant to these rules are not subject to the di spute settlement provisions of the Agreement. 
4. Subsidies, state-aid and countervailing measures 
36. In Article 52, the Parties reaffirm their comm itment to abide by the provisions of the 
WTO Agreement on Subsidies and Countervailin g Measures.  Countervailing measures taken 
pursuant to these rules are not subject to the di spute settlement provisions of the Agreement. 
5. Other regulations 
(a) Customs-related procedures 
37. Customs procedures related to rules of origin are detailed in Chapter V.  Articles 30, 33-36 
and 38 lay out disciplines for documentation require ments and verification of origin.  Annex 4 
contains a sample of the certificate of origin whic h is to be issued by the government authority 
designated by the exporting Party upon wr itten application by the exporter.   
38. Article 41 provides for the customs authorities of  each Party to issue a written advance ruling 
upon written request by an importer or  exporter within 150 days of the request.  Article 42 provides 
for the Parties to publish their customs laws, regul ations and customs proce dures on websites and to 
designate one or more inquiry points to address inquiries from interested persons.  Annex 6 of the 
Agreement contains details relating to the est ablishment of a Certification and Verification 
Networking System on the Certificate of Origin (CVNSCO) within two years from the signature of the Agreement.  This system will allow for the el ectronic exchange and verification of the certificate 
of origin.    WT/REG230/1 
 Page 13 
 
 
  (b) Transparency 
39. Chapter IX provides for a range of measure s to promote transparency including the 
establishment of contact points;  prompt publication of measures on any matter covered by the Agreement;  notification and provision of informa tion;  timely notification of administrative 
proceedings;  and procedures relating to the establishm ent or maintenance of tribunals for the prompt 
review and appeal of matters covered by the Agreement. 
IV. PROVISIONS AFFECTING TRADE IN GOODS 
A. I
NTELLECTUAL PROPERTY  
40. In Article 111 of the Agreement, the Parti es agree to cooperate on matters related to 
intellectual property rights.  Coope ration may take the form of edu cational and dissemination projects, 
training and specialization courses, information exch ange, notification of contact points, and reports 
regarding developments, improve ments, relevant jurisprudence and bills in Congress. 
41. In Annex 2A and 2B, the Parties list geographi cal indications (for China, Shaoxing wine and 
Anxi Tieguanyin (tea), and for Chile, Chilean Pisco) and agree that those terms are protected in the 
territory of the other Party.  In Article 11, the Pa rties outline the procedures to be followed at borders 
in the event of suspected counterfeit trademark or pi rated copyright goods.  Such procedures are to be 
implemented no later than two years after th e entry into force of the Agreement.   
B. LABOUR AND ENVIRONMENTAL COOPERATION  
42. In Article 108 the Parties agree to enhance their communication and cooperation on labour, 
social security and environment through bot h the Memorandum of U nderstanding on Labour and 
Social Security Cooperation, and the Environmenta l Cooperation Agreement between the Parties.   
43. On 2 November 2005, the Ministries of Labour and Social Security of both Parties signed a 
Memorandum of Understanding on La bour and Social Security Cooperation.  Labour cooperation 
activities will include, among others, the following fields: a) employment and labour policies and 
social dialogue, including decent work, labour laws and labour inspection; b)improvement of working 
conditions and workers training; c) globalization and its impact on employment, the working 
environment, industrial relations and governance, a nd d) social security.  Cooperation activities may 
be implemented, among others, through:  exchanges of  information and expertise in the fields covered 
by the Memorandum;  reciprocal visits of experts and delegations;  joint or ganization of seminars, 
workshops and meetings for expe rts, regulatory authorities and other persons concerned; and  
consultations within the framework of multilatera l discussions on employment, training, labour and 
social security issues.  A Coordinator, in each country , at Director General Level, is in charge of its 
implementation. 
44. On 20 September 20 2007, the National Commission on the Environment of Chile 
(CONAMA) and the State Environmental Protection Administration of China (SEPA), signed a Memorandum of Understanding on Environmental Cooperation,  that seeks to promote cooperation in 
the field of environmental protection, on the basis of equality and mutual benefit and subject to the 
legislation and to the availability of human and financial resources of the Parties.  The following areas 
of cooperation were identified as high priority: air pollution control and monitoring; water quality 
management policy and water treatment technologies ; marine and coastal ecological conservation and 
pollution control; and, improvement of environmen tal awareness, including environmental education 
and public participation. 
 WT/REG230/1 
Page 14  
 
  45. The agreed areas of cooperation may be conduc ted, inter alia, in the following forms: 
exchange of relevant environmental information and documentation; exchange  visits of experts, 
scholars and delegations; and, jointly organized seminars, workshops and meetings attended by 
scientists, experts, regulators and others concer ned.  The Parties will encourage environmental 
protection organizations, enterprises and municipalities,  as well as research institutions on both sides, 
to establish and develop direct contacts with each ot her in the field of environmental protection and 
sustainable development.  A Coordinator, in each countr y, at Director General level, is in charge of its 
implementation. 
C. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
46. In Article 12, the Parties agree to work together  toward an agreement in the WTO to eliminate 
agricultural export subsidies and to prevent thei r reintroduction in any form.  Neither Party may 
introduce or maintain any export subsidy on any agri cultural goods destined for the territory of the 
other Party. 
D. INSTITUTIONAL PROVISIONS OF THE AGREEMENT  
1. Exceptions and reservations 
47. Article 99 incorporates Article XX of the GATT 1994 into the Agreement.  Article 100 
contains exceptions for essential security based on Article XXI of the GATT 1994.   
2. Accession 
48. There is no provision in the Agreement for the accession of third parties. 
3. Institutional framework 
49. Article 13 provides for the establishment of  a Committee on Trade in Goods comprising 
representatives of each Party.  The Committee meets on the request of either Party or the Free Trade 
Commission to consider any matter relating to market access and national treatment, rules of origin and related procedures.     
50. Chapter XI provides for the incorporation of the Trade and Economic Mixed Commission 
(Mixed Commission) which was established acco rding to the Trade Agreement between the 
Government of the People's Republic of China and the Government of the Republic of Chile, signed 
in Santiago on April 20, 1971, into the Agreemen t.  The Mixed Commission hears the reports of the 
Free Trade Commission, provides guidance and considers any other matter that may affect the operation of the Agreement.  Article 97 provides for the establishment of the Free Trade Commission 
(Commission) whose responsibilities include the implementation and oversight of the further 
elaboration of the Agreement, dispute settlement a nd supervision of the work of all committees.   
4. Dispute settlement 
51. Chapter X sets out the procedures that apply to the avoidance and settlement of disputes 
between the Parties regarding questions of interpre tation or application of the Agreement.  In the 
event that consultations between the Parties fail to  settle the dispute an arbitral tribunal may be 
appointed.  Article 81 provides for a forum election clause for matters falling under both the 
Agreement and the WTO Agreement to which both Pa rties are party; however, once the complaining 
Party has chosen the forum to settle the dispute, that forum shall be used to the exclusion of the others 
(exclusive forum clause).    WT/REG230/1 
 Page 15 
 
 
  52. The Agreement provides for detailed steps for di spute resolution, the most salient of which 
are synoptically described below.  It also requires the Parties to establish rules of procedure, which 
shall ensure that the Parties have the right to a h earing before the arbitral panel and the opportunity to 
present allegations and rebuttals in writing (Annex 7) .  The hearings before the arbitral panel, the 
deliberations and preliminary report, as well as all the writings and communications presented are 
confidential (see Table IV.1).  The Parties may, howev er, disclose statements of their own positions to 
the public. WT/REG230/1 
Page 16  
 
  Table IV.1 
Synopsis of the Chile-China FTA's Dispute Settlement Provisions 
 
 
5. Relationship with other agreements concluded by the Parties 
53. In Article 3 the Parties affirm their existing rights and obligations with respect to each other 
under the WTO Agreement and other agreements  to which both Parties are parties.   
54. Table IV.2 lists the regional trade agreements  (RTAs), (notified and non-notified to the 
GATT/WTO and in force), as of 1 March 2008 to which Chile and China are parties.   
 
 
     
 
(Art. 1802)  
(Art. 1809.4)  -
If no notice of implementation or no  
satisfactory solution (Art. 1811)  
- 4) Consultations  (Art. 82) 
Referral to the Commission  (Art. 83) 
Composition  (Art. 85) 
Rules of procedure  (Annex 7) 
Hearings  (Annex 7) 
Panel final report  (Art. 91) 60 or 15 days (perishable goods) 
Written request for establishing a Panel 
(Art. 84) 30, 75 or 30 days (perishable goods) 
Max 60 days for composition 
Panel initial report to be sent to 
the Parties   (Art. 90) 120 days or 60 days (perishable goods) 
30 days 
Report becomes public  (Art. 91) 15 days from Parties' release Implementation  
In agreement by the Parties(Art 92) 
Non-implementation   
Negotiations on mutually acceptable 
compensation (Art. 93) 45 days from receipt of final report 
failure to reach agreement 
Suspension of Benefits (Art. 93) 
− If no agreement on compensation (20days), 
complaining Party may suspend benefits (30 
days notice) 
Arbitral Panel Determination (Art. 93) 
− if Party considers level of suspension of 
benefits is excessive 
Arbitral Panel determination 
ruling is final and binding  (Art. 93.6) 60 days from request 
Suspension of benefits (Art. 93)   WT/REG230/1 
 Page 17 
 
 
  Table IV.2 
Chile and China:  Participation in other RTAs (notified and non-notified in force) 
Partner / Agreement GATT/WTO Notification 
 Date of 
entry  
into force Type of 
agreement 
Year WTO Provision 
CHILE  
Japan 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Brunei, New Zealand, Singapore 
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Communities 01.03.05 Services 2005 GATS Art. V 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
European Communities 01.02.03 Goods 2004 GATT Art. XXIV 
El Salvador 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA* 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
India 16.08.07 Goods  Not Notified 
CHINA  
Hong Kong, China 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
Macao, China 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
ASEAN 01.07.03 Goods 2004 Enabling Clause 
ASEAN 01.07.07 Services  Not notified 
APTA (Accession) 01.01.02 Goods 2004 Enabling Clause 
Pakistan 01.07.07 Goods 2008 GATT Art. XXIV 
Source: WTO Secretariat. 
* Chile has concluded six RTAs under the LA IA framework (with MERCOSUR, Bolivia, Co lombia, Ecuador, Peru, and Venezuela).  
These RTAs have not been notified, but are included in periodic reports submitted by LAIA. 
 
GSTP: GLOBAL SYSTEM OF TRADE PREFERENCES 
LAIA: LATIN AMERICAN INTEGRATION ASSOCIATION 
PTN: PROTOCOL RELATING TO TRADE NEGOTIATIONS AMONG DEVELOPING COUNTRIES 
SEP: STRATEGIC ECONOMIC PARTNERSHIP APTA: ASIA PACIFIC TRADE AGREEMENT 
ASEAN: ASSOCIATION OF SOUTH EAST ASIAN NATIONS WT/REG230/1 
Page 18  
 
  ANNEX 
 
Indicators of trade liberalization under the Chile-China FTA
 
 
55. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them to MF N imports is shown in Tables A.1 (Chile) and A.2 
(China) below, broken down by agricultural (WTO definition), non-agricultural and total products.  
Applied MFN duty rates in 2006 serve as a comparison. 
56. Chile  has a mostly flat MFN tariff structure.  It s (unweighted) average MFN rate (2006) is 6% 
on all goods, with a slightly higher average tariff a pplied to agricultural goods than to non-agricultural 
products.  Only 0.44% of Chile's tariff lines are duty-fr ee at an MFN level.  On entry into force of the 
Agreement, China's exporters enjoyed a relative margin of preference of 76% on non-agricultural 
products vis-à-vis  the prevailing average MFN tariff in 2006, and a relative margin of preference of 
86% in agricultural goods.   
Table A.1 
Chile: Indicators of MFN tariff rates and preferential rates for imports from China 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of duty-
free tariff 
lines (%) 
MFN 2006 6.0 6.02 0.44 6.16 6.16 0.00 5.97 6.00 0.51 
China 2006 1.4 5.36 74.55 0.84 10.60 92.13 1.45 5.13 71.75 
 2007 1.1 4.43 74.55 0.67 8.45 92.13 1.20 4.26 71.75 
 2008 0.9 3.51 74.55 0.50 6.30 92.13 0.96 3.39 71.75 
 2009 0.7 2.59 74.55 0.33 4.14 92.13 0.71 2.52 71.75 
 2010 0.4 3.47 87.81 0.16 5.50 97.15 0.47 3.41 86.33 
 2011 0.4 2.97 87.81 0.15 5.40 97.15 0.40 2.89 86.33 
 2012 0.3 2.46 87.81 0.15 5.30 97.15 0.32 2.37 86.33 
 2013 0.2 1.96 87.81 0.15 5.20 97.15 0.25 1.85 86.33 
 2014 0.2 1.45 87.81 0.15 5.10 97.15 0.18 1.34 86.33 
 2015 0.1 6.00 98.08 0.14 6.00 97.63 0.11 6.00 98.14 
 
a WTO Definition.  
Source:  WTO Secretariat estimates based on data provided by Chile. 
 
57. China  has a variable MFN tariff structure.  Its (unweighted) average MFN rate (2006) is 9.9% 
on all goods, with a higher average tariff applied to agricultural goods than to non-agricultural products.  8.5% of China's tariff lines are duty-free at  an MFN level.  On entry into force, Chile's 
exporters enjoyed a relative margin of pref erence of 44% on non-agricultural products vis-à-vis  the 
prevailing average MFN tariff in 2006, and a relative margin of preference of 24.4% in agricultural 
goods.  By the end of the transition period in 2015,  these margins of preference increase to 99.8% and 
86.3%, respectively. 
Table A.2 
China:  Indicators of MFN tariff rates a nd preferential rates for imports from Chile 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of duty-
free tariff 
lines (%) 
MFN 2006 9.9 10.82 8.51 15.30 16.53 7.44 9.00 9.86 8.70 
Chile 2006 6.0 9.52 37.26 11.56 14.38 19.65 5.04 8.44 40.28 
 2007 3.6 9.81 63.04 8.45 15.40 45.09 2.81 8.32 66.18 
Table A.2 (Cont'd)   WT/REG230/1 
 Page 19 
 
 
  ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of duty-
free tariff 
lines (%) 
 2008 3.0 8.02 63.04 7.10 12.93 45.09 2.27 6.71 66.18 
 2009 2.3 6.24 63.05 5.74 10.46 45.09 1.73 5.10 66.20 
 2010 1.6 6.82 75.87 4.39 13.85 68.32 1.18 5.21 77.31 
 2011 1.4 5.84 75.87 3.93 12.41 68.32 0.98 4.34 77.31 
 2012 1.2 4.87 75.87 3.47 10.96 68.32 0.79 3.47 77.31 
 2013 0.9 3.89 75.87 3.02 9.52 68.32 0.59 2.61 77.31 
 2014 0.7 2.92 75.87 2.56 8.08 68.32 0.39 1.74 77.31 
 2015 0.5 16.69 97.19 2.10 39.45 94.67 0.20 8.23 97.60 
 
a WTO Definition. 
 
Source:  WTO Secretariat estimates based on data provided by China. 
 
58. Table A.3 shows the market access opportunities in  China for Chile's top 25 exports, which in 
2003-2005 accounted on average for 71.9% of Chile's gl obal exports.  The table shows at which year 
all HS 8-digit tariff lines corresponding to the product definition (i.e. applying to the 6-digit HS code 
used to capture the volume of trad e) will become duty-free in China. 
59. Chile's top 25 exports cover a total of 46 HS  8-digit tariff lines.  Seven of Chile's top 
25 exports (which account for 11 HS 8-digit lines and 25.9% of Chile's averag e global exports in the 
period 2003-05) already benefit from zero MFN duties in China's market, a further 4 products (accounting for 4 tariff lines and a further 29.2% of  Chile's average global exports) gain immediate 
duty-free access;  one product is granted duty-fr ee access in 2010, 12 in 2015, and one product, 
iodine, is excluded from tariff liberalization.  The margin of preference granted to Chile by China 
under the Agreement varies from 0 to 14 percentage points. 
Table A.3 – Market access opportunities under the ag reement in China for Chile's top 25 exports   
Access Conditions to China's import markets  
MFN (2006)  Chile's top export products in 2003-2005  Number of tariff 
lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports 
(%) Avg. 
MFN 
applied 
rate 
(%) Duty
-free  Dutiable  2006 2010 2015 Remain 
dutiable 
740311 Cathodes and sections of 
cathodes 24.4 2.0  1 1    
260300 Copper ores and concentrates 15.0 0.0 1      
261310 Molybdenum ores and 
concentrates, roasted 3.0 0.0 1      
740200 Unrefined copper; copper anodes 
for electrolytic refining. 2.8 2.0  1 1    
470321 Chemical wood pulp, semi-
bleached or bleached, coniferous 2.3 0.0 1      
220421 Wine of fresh grapes, In 
containers holding 2 litres or less 2.3 14.0  1   1  
080610 Grapes, fresh 2.2 13.0  1   1  
440710 Wood sawn or chipped 
lengthwise, coniferous 1.9 0.0 5      
261390 Molybdenum ores and 
concentrates, other 1.8 0.0 1      
290511 Methanol (methyl alcohol) 1.8 5.5  1   1  
030420 Fish fillets, frozen 1.4 10.0  2   2  
030410 Fish fillets, fresh or chilled 1.3 12.0  1   1  
230120 Flours, meals and pellets, of fish 
or of crustaceans, molluscs or 
other aquatic invertebrates 1.3 3.5  2   2  
Table A.3 (Cont'd)  WT/REG230/1 
Page 20  
 
  Access Conditions to China's import markets  
MFN (2006)  Chile's top export products in 2003-2005  Number of tariff 
lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports 
(%) Avg. 
MFN 
applied 
rate 
(%) Duty
-free  Dutiable  2006 2010 2015 Remain 
dutiable 
740319 Refined copper and alloys , other 1.3 2.0  1 1    
271011 Light oils and preparations 1.2 7.0  5   5  
710812 Gold, other unwrought forms 1.0 0.0 1      
080810 Apples 1.0 10.0  1   1  
470329 Chemical wood pulp, non-
coniferous 0.9 0.0 1      
440910 Wood, continuously shaped, 
coniferous 0.9 7.5  2   2  
720270 Ferro-molybdenum 0.7 2.0  1 1    
030319 Fish, frozen, other 0.7 10.0  1   1  
230329 Residues of starch manufacture 0.7 12.0  1  1   
030490 Fish fillets, other 0.7 10.0  1   1  
271019 Petroleum oils, other 0.7 6.6  11   11  
280120 Iodine 0.6 5.5  1    1 
Total of above 71.9  11 35 4 1 29 1 
 
Source:  WTO Secretariat, based on data provide d by China and UNSD, Comtrade data. 
 
60. Like Table A.3, Table A.4 shows the market  access opportunities in Chile for China's top 
25 exports (at the HS 6-digit level), which accounted  on average for 30.4% of China's exports to the 
world in 2003-05.  The table shows at which year all HS 8-digit tariff lines corresponding to the product definition (i.e. applying to the 6-digit HS code used to capture the volume of trade) will 
become duty-free in Chile.   
 61. China's top 25 exports cover a total of 96 HS 8-digit tariff lines, all of which were subject to a 
flat MFN rate of 6% in Chile's market.  Upon entry into force of the Agreement, 20 products (accounting for 74 tariff lines and 27.4% of China' s average global exports) gain immediate duty-free 
access, three products are granted duty-free access in 2010 and the remaining two in 2015.   
 
Table A.4 – Market access opportunities in Chile  under the Agreement, for China's top 25 exports  
Access Conditions to Chile's import markets  China's top export products in 2003-2005  MFN (2006)  Duty-free in  
HS number and description of the product  Share in 
global 
exports 
(%) Avg. MFN 
applied 
rate 
(%) Number 
of 
dutiable 
tariff 
lines  2006 2010 2015 
847330 Parts and accessories of the machines of heading 84.71 3.9 6.00 4 4   
847160 Input or output units, whet her or not containing storage 
units in the same housing 3.5 6.00 13 13   
847130 Portable digital automatic data processing machines, 
weighing not more than 10 kg, consisting of at least a 
central processing unit, a keyboard and a display 3.5 6.00 1 1   
852520 Transmission apparatu s incorporating reception 
apparatus 2.7 6.00 4 4   
852990 Parts suitable for use sole ly for reception apparatus for 
radio, television, other 2.0 6.00 8 8   
854221 Digital electronic circuits and micro assemblies 1.3 6.00 3 3   
847170 Storage units 1.2 6.00 3 3   
901380 Other devices, appliances a nd instruments 1.2 6.00 1 1   
852190 Video recording or reproducing apparatus, other 1.1 6.00 1 1   
860900 Containers (including cont ainers for the transport of 
fluids) specially designed a nd equipped for carriage by 
one or more modes of transport. 0.8 6.00 1 1   
852540 Still image video cameras and other video camera 
recorders; digital cameras 0.8 6.00 2 2   
Table A.4 (Cont'd)   WT/REG230/1 
 Page 21 
 
 
  Access Conditions to Chile's import markets  China's top export products in 2003-2005  MFN (2006)  Duty-free in  
HS number and description of the product  Share in 
global 
exports 
(%) Avg. MFN 
applied 
rate 
(%) Number 
of 
dutiable 
tariff 
lines  2006 2010 2015 
852812 Reception apparatus for televi sion, colour 0.7 6.00 8 8   
850440 Static converters 0.7 6.00 6 6   
640399 Footwear with outer soles of  rubber, plastics, leather or 
composition leather and uppers of leather, other 0.7 6.00 6  6  
852290 Parts and accessories suitable for use solely or 
principally with magnetic tape  or video recorders, other 0.7 6.00 2 2   
853400 Printed circuits. 0.6 6.00 1 1   
640299 Bed linen, table linen, other 0.6 6.00 6  6  
851999 Turntables, record-players, other 0.6 6.00 2 2   
420212 Trunks, suitcases, with outer  surface of plastics or of 
textile materials 0.6 6.00 2  2  
847180 Other units of automatic data processing machines 0.6 6.00 3 3   
611030 Jerseys, pullovers, cardigans, of  man-made fibres 0.6 6.00 4   4 
270112 Bituminous coal 0.5 6.00 3 3   
950410 Video games of a kind used with a television receiver 0.5 6.00 1 1   
610910 Cotton T-shirts, singlets and other vests, knitted or 
crocheted 0.5 6.00 4   4 
271011 Light oils and preparations 0.5 6.00 7 7   
Total of above 30.4  96 74 14 8 
Source: WTO Secretariat, based on data provide d by Chile and UNSD, Comtrade data. 
 
__________