WORLD TRADE  
ORGANIZATION  WT/REG272/1  
21 September 2010 
 (10-4833) 
Committee on Regional Trade Agreements  
  
 
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement 
between 
Colombia and Chile 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Free Trade Agreement between 
Colombia and Chile has been drawn up by the 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 cont ained in the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to Ms Roberta Lascari (tel:  +41 22 739 6268).  WT/REG272/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
   Page 
I. TRADE ENVIRONMENT 1
 
A. OVERVIEW  1 
B. MERCHANDISE TRADE  1  
C. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 9  
A. BACKGROUND INFORMATION  9  
III. TRADE IN GOODS 11 
A. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  11  
1. General provisions 11  
2. Import duties and charges, and quantitative restrictions 11  
3. Liberalization of tariffs and trade 12  
(a) Liberalization under the ACE 24 12  
(b) Liberalization under the Agreement 14  
4. Tariff Rate Quotas 19  
5. Rules of origin 20  
6. Export duties and charges, and quantitative restrictions 21  
7. Regulatory provisions on trade in goods 22  
(a) Standards 22  
(b) Safeguard mechanisms 25  
(c) Anti-dumping and countervailing measures 26  
(d) Subsidies and State aid 26  
(e) Customs-related procedures 26  
(f) Other regulations 28  
8. Sector-specific provisions  on trade in goods 29  
(a) Agriculture 29  
IV. TRADE IN SERVICES AND INVESTMENT 30  
A. SCOPE AND DEFINITIONS  30  
B. DENIAL OF BENEFITS  32  
C. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  32  
1. Market access 32  
2. National and MFN treatment 32  
3. Commercial presence 33  
4. Movement of natural persons 33  
5. Performance requirements 35  
6. Other provisions on investment 36  
D. LIBERALIZATION COMMITMENTS  37  
2. Colombia 37  
3. Chile 42  
E. REGULATORY PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  48  
1. Domestic regulation 48  
2. Recognition 48  
3. Sector-specific provisions on trade in services and investment 49  WT/REG272/1 
Page iv  
 
  Page 
 
V. GENERAL PROVISIONS OF THE AGREEMENT 49  
1. Transparency 49  
2. Current payments and capital movements 49  
3. Exceptions 49  
4. Accession and withdrawal 50  
5. Institutional framework 50  
6. Dispute settlement 51  
7. Relationship with other agreements concluded by the Parties 53  
8. Government procurement 55  
9. Other 57  
(a) Electronic Commerce 57  
(b) Labour 58  
(c) Environment 58  
(d) Cooperation 59  
ANNEX I 61 
ANNEX II 65 
 
  WT/REG272/1 
 Page 1 
 
 
  I. TRADE ENVIRONMENT 
A. OVERVIEW  
1. The Free Trade Agreement between Colombia and Chile (hereinafter "the Agreement") is the 
12th regional trade agreement (RTA) concluded by Colo mbia and its seventh notification to the WTO.  
For Chile, it is the 25th RTA concluded and the 23rd notification to the WTO.1 
2. In 2008, Colombia's GDP amounted to US$24 2.2 billion, while that of Chile was 
US$169.4 billion.  The two economies have relativel y similar trade structures in goods and services 
although with different trade to GDP ratios, 35. 5 for Colombia and 80.5 for Chile during 2006-2008.2  
In the same year, Colombia ranked 58th and 54th among global exporters a nd importers of goods, with 
total merchandise exports and imports valued at US$37.626 billion and US$39.668 billion 
(respectively 0.23 per cent and 0.24 per cent of world exports and imports).  In  comparison, Chile was 
the 47th largest exporter and the 45th largest importer of goods at globa l level, with total merchandise 
exports and imports amounting to US$66.4 billi on and US$61.9 billion (with 0.41 per cent and 
0.38 per cent of world exports and imports).  Fuels and mining account for the largest share of exports 
for both parties, while manufactures account for the majority of their imports from the world. 
3. As regards trade in commercial services, Colombia ranked 70th and 61st in terms of global 
exports and imports in 2008, with services e xports valued at US$4 billion and import at 
US$7.1 billion (0.11 per cent and 0.20 per cent of exports and imports, respectively).  With services 
exports of US$10.6 billion and imports of  US$11.1 billion, Chile ranked as the 50th and 51st largest 
exporter and importer of commercial services in that year, at 0.28 per cent and 0.32 per cent of world 
exports and imports.3 
B. MERCHANDISE TRADE  
4. In 2008, Chile was Colombia's sixth largest export market and 15th largest source of imports, 
accounting for 2.3 per cent and 1.8 per cent of its global exports and imports.  In the same year, 
Colombia was Chile's seventh larg est export market, absorbing 6.3 per cent of its exports, and its 
20th largest source of imports, accounting for 1.1 per cent of total imports. 
5. Recent developments in global and intra-Party trade are presented in Charts I.1 (Colombia) 
and I.2 (Chile).  Colombia's trade with the wo rld has grown steadily over the period surveyed, 
although the trade balance moved into a deficit in th e last three years.  Over the period surveyed, 
Chile has run an overall trade surplus with the world, which has widened since 2003 although the 
surplus narrowed in 2008 due mainly to a decline in export growth. 
6. With regard to bilateral trade, for much of th e period Colombia maintained a small deficit, 
which widened in 2006 and 2007 before moving into a su rplus due to a surge in exports in 2008.  Data 
reported by Chile, however, shows that Chile's trad e deficit with Colombia widened considerably 
more in 2008 that the figures reported by Colombia suggest. 
7. There are a number of discrepancies in the bilate ral trade data notified to the UNSD Comtrade 
database by the Parties, in particular with regard to  Colombian exports to Chile (Chilean imports).  In 
2008, for example, Colombia reported that exports to Chile amounted to US$848 million, while Chile 
                                                      
1 WTO Regional Trade Agreements Database:  http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . 
2 WTO Statistics Database, Trade Profiles (March 2010). 
3 WTO Statistics Database, Trade Profiles (March 2010). WT/REG272/1 
Page 2  
 
  reported imports of US$2 billion.
4  The reason for the discrepancies in the data provided by the 
Parties is not clear. 
051015202530354045505560
2000 2001 2002 2003 2004 2005 2006 2007 20080.00.51.01.52.0US$billionUS$billionChart I.1 - Colombia: Merchandise  imports from and exports to 
world and Chile, 2000-2008
Source :  UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
05101520253035404550556065707580
2000 2001 2002 2003 2004 2005 2006 2007 20080.00.51.01.52.02.53.03.54.0US$billion US$billionChart I.2 - Chile: Merchandise imports from and exports to world 
and Colombia, 2000-2008
Source : UNSD, Comtrade database.Imports from Colombia
Exports to ColombiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
                                                      
4 In 2006 these figures were US$258 million and US$362 million;  in 2007, US$357 million and 
US$881 million.  WT/REG272/1 
 Page 3 
 
 
   
8. The commodity structure of trade between the Par ties, as well as of their imports and exports 
to the world, in the period 2006-2008 is shown in Ch art I.3, on the basis of Harmonized System (HS) 
sections. 
9. Colombia's total imports from Chile amounted to US$626 million in 2006-2008.  Its bilateral 
import structure is very diversified, since base me tals, wood pulp, vegetables,  and prepared foodstuffs 
accounted for 61 per cent of total imports.  The same four categories represented Chile's main exports 
to the world.  Chile's imports from Colombia on the other hand are dominated by mineral products 
that alone accounted for 72 per cent of the total.   Minerals also represented 41.6 per cent of 
Colombia's global exports, followed by vegetables (1 1.5 per cent).  Colombia's global imports were 
machinery (25.9 per cent), chemicals (15.6 per cen t), and vehicles (14.2 per cent).  Machinery and 
vehicles also accounted for 31.6 per cent of Chile 's imports from the world, followed by minerals 
(29.8 per cent). WT/REG272/1 
Page 4  
 
  Chart I.3
Colombia and Chile: product composition of merchandise trade, annual average (2006-2008)
Colombia's imports from Chile Chile's imports from Colombia
Source:  UNSD, Comtrade database.Per cent
Total:  US$626 million Total:  US$1,125 million
Total:  US$32,909 million Total: US$45,211 million
Total:  US$30,669 million Total:  US$615 millionColombia's global exports Chile's global exportsColombia's global imports Chile's global importsOther
2.5
Base metals
18.6Vehicles 2.7
Minerals
72.0Other 
4.3
Plastics 6.0
Other 
6.5
Minerals
29.8
Textiles 4.0Vegetables 2.4Other
6.7
Vehicles
14.2Plastics 6.1Machinery
25.9Prepared foods 3.4
Vegetables 5.2Optical 2.9
Base metals 6.0Minerals 3.9
Plastics 4.8
Other 
5.3Other 
3.4
Plastics 4.5Prepared foods 3.7
Base metals 7.9Chemicals 4.7
Vegetables 11.9Plastics 8.7
Prepared foods
12.8Live animals 3.3Minerals 2.8Articles of wood 4.1
Vehicles 
10.4Prepared foods  2.8Chemicals 5.8
Base metals 
9.9
Vehicles 3.7Machinery 8.5Textiles 1.8
Plastics 9.1Prepared foods 
6.0
Vegetables 11.5Minerals 
41.6Vehicles 3.1
Precious stones 3.5Articles of wood 3.8Machinery 3.1Animal products 2.7Textiles 2.3Wood pulp 1.8
Wood pulp 2.6
Wood pulp 1.8Wood pulp 
16.3
Vegetables 14.9Prepared foods 
12.2Chemicals 5.7Live animals 3.7
Machinery 21.2Chemicals 8.5
Base metals 
18.8
Machinery 7.8Chemicals 5.7Machinery 1.8
Optical 1.6
Chemicals 15.6Textiles 3.9
Wood pulp 15.6Textiles 1.7
Textiles 5.8Wood pulp 2.5
Source : UNSD, Comtrade database. 
  WT/REG272/1 
 Page 5 
 
 
  C. TRADE IN SERVICES AND INVESTMENT  
10. Chart I.4 shows the breakdown of commercial services trade for Colombia in 2000-2008.  
Colombia has recorded a growing overall deficit in tr ade in services throughout the period.  The three 
main categories of exports and imports of commercial services were transportation services, travel, and other business services.  At present, Colombia do es not have any information on foreign trade in 
services by partner country. 
012345678
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: no trade data of Construction in 2000-2007 and export data  in 2008; no import data of Insurance services in 2000-2008.
Source: IMF, BOP CD-Rom.Chart I.4
Colombia, total commercial services trade, 2000-2008
US$ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and info rmation services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
Construction Government servicesInsurance services
 
 
11. Chart I.5 shows the breakdown of commercial se rvices trade for Chile in 2000-2008.  Over 
this period, Chile's participation in world trade in services has increased, although import growth has 
been more rapid than export growth.  The three ma in categories of exports and imports of commercial 
services were transportation services, travel, and other business services.  Data on bilateral services in not available in Chile. WT/REG272/1 
Page 6  
 
  051015
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Chile authorities.Chart I.5
Chile, total commercial services trade, 2000-2008
US$ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
Insurance services Government services
 
 
12. Chart I.6 shows Colombia's inward and outward flows of FDI with the world in 2000-2009.  
Colombia is a net recipient of FDI.  Inward FDI flow s have increased especially in the last four years, 
except for a decline in 2006, reaching US$10.5 billion in 2008.  The outward flow of FDI has been 
erratic, peaking in 2005 at US$4.6 billion.  WT/REG272/1 
 Page 7 
 
 
  051015
2000
20012002200320042005
2006
2007
2008
2009051015
2000
2001
20022003
2004
2005
2006
20072008
2009Chart I.6
Colombia, inward and outward foreign in vestment flow from world, 2000-2009
Inflows OutflowsUS$ billion US$ billion
Note: provisional data: inflows(2003-2004); outflows (2005-2009); preliminary data: inflows (2005-2009).
Source: Banco de la República, Subgerencia de Estudios Económicos y Departam ento de Cambios Internacionales.
 
 
13. Chart I.7 shows Colombia's inward and outward  flows of FDI with Chile during the period 
2000-2009.  At bilateral level, Colombia is also a ne t recipient of FDI.  The bilateral trend was erratic 
during this period.  Inward FDI flows increased in  the last three years, reaching US$53.713 billion in 
2009.  FDI outflows increased once again in 2007, but have since fallen progressively. WT/REG272/1 
Page 8  
 
  051015202530354045505560
2000
20012002200320042005
2006
2007
2008
2009051015202530354045505560
2000
2001
20022003
2004
2005
2006
20072008
2009Chart I.7
Colombia, inward and outward foreign investment flow with Chile, 2000-2009
Inflows OutflowsUS$ million US$ million
Note: provisional data: inflows(2003-2004); outflows (2005-2009); preliminary data: inflows (2005-2009).
Source:  Banco de la República, Subgerencia  de Estudios Económicos y Departam ento de Cambios Internacionales..
 
 
14. Chart I.8 presents Chile's inward and outward fl ow of FDI with the world in 2000-2008.  Like 
Colombia, Chile is a net recipient of FDI.  The flow of inward FDI sharply increased in the last 
two years, reaching US$16 billion in 2008.  Outwar d FDI flows fell between 2000 and 2002, but have 
been increasing ever since.  WT/REG272/1 
 Page 9 
 
 
  05101520
2000 2001 2002 2003 2004 2005 2006 2007 200805101520
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.8
Chile, inward and outward foreign inve stment flow from world, 2000-2008
Inflows OutflowsUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
 
15. Table I.1 shows FDI (based on flows) by Co lombia in Chile during the period 2000-2008 
which has been relatively small apart from  investment of US$194.4 million in 2007. 
Table I.1. 
Chile, foreign direct investment inflow from Colombia, 2000-2008 (in thousand US$) 
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 
Value (1,431) 19,000 0 0 0 23,800 2,327 194,455 780 
Source : Data provided by the authorities of Chile.  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
16. The Agreement between Colombia and Chile constitutes an Additional Protocol to the 
"Acuerdo de Complementación Económica No. 24" (her einafter "the ACE 24"), concluded by the 
Parties pursuant to the Montevideo Treaty of 1980 in the framework of the Latin American 
Integration Association (LAIA).  The ACE 24 was signed on 6 December 1993 and entered into force 
on 1 January 1994.5  Some of its provisions continue to apply to trade between the Parties, in 
accordance with Article 22.3.3 of the Agreement (see Section III.A.3 below). 
                                                      
5 The text of the ACE 24, together with the Annexes and Protocols, is available at:  
http://www.aladi.org/ . WT/REG272/1 
Page 10  
 
  17. The Free Trade Agreement between Colombia and Chile was signed on 27 November 2006 in 
Santiago, Chile, and entered into force on 8 May 2 009.  It was notified to the WTO by the Parties on 
14 August 2009 under Article XXIV :7(a) of GATT 1994 and Article V:7(a) of the GATS, as 
document WT/REG272/N/1 and S/C/N/509. 
18. The text of the Agreement, together with its Annexes, is available on the Parties' official 
websites: 
• Colombia: 
http://www.mincomercio.gov.co/eContent/n ewsdetail.asp?id=2429&idcompany=7
 
• Chile: 
http://rc.direcon.cl/acuerdo/784  
19. The Agreement is composed of 22 Chapters and related annexes, as summarized in Table II.1 
below. 
Table II.1 
Table of Contents of the Agreement 
Chapters and annexes Title/Description 
Preamble  
Chapter 1 Initial Provisions 
Chapter 2 General Definitions 
Chapter 3 Trade in Goods 
Chapter 4 Origin Regime 
Annex 4.1  Specific Rules of Origin  
Chapter 5 Trade Facilitation 
Chapter 6 Sanitary and Phytosanitary Measures 
Chapter 7 Technical Barriers to Trade 
Chapter 8 Trade Defence 
Chapter 9 Investment 
Chapter 10 Cross-border Trade in Services 
Chapter 11 Temporary Entry for Business Persons 
Chapter 12 Electronic Commerce 
Chapter 13 Government Procurement 
Chapter 14 Transparency 
Chapter 15 Administration 
Chapter 16 Dispute Settlement 
Chapter 17 Labour 
Chapter 18 Environment 
Chapter 19 Cooperation 
Chapter 20 General Provisions 
Chapter 21 Exceptions 
Chapter 22 Final Provisions 
Annex I Explanatory Note 
Trade in Services and Investment Non-Conforming Measures 
Annex II Explanatory Note 
Trade in Services and Investment Non-Conforming Measures  
Source : The Agreement.   WT/REG272/1 
 Page 11 
 
 
  20. Under Article 22.8, the Parties undertake to continue negotiations in: 
(a) Tourism; 
(b) financial services:  the Parties are to negotiate a chapter on financial services within 
two years from the entry into force of the Agreement;  and 
(c) telecommunications:  the Parties are to negotiate a chapter on telecommunications 
within six months of the entry into force of the Agreement.6 
III. TRADE IN GOODS 
A. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  
1. General provisions 
21. Each Party shall grant national treatment to g oods of the other Party, in accordance with 
Article III of GATT 1994 and its interpre tative notes, which are incorporated, mutatis mutandis , into 
the Agreement (Article 3.1). 
22. Exceptions to national treatment (Article 3. 1) and to a prohibition on import and export 
restrictions (Article 3.4) are cont ained in Annex 3.1.  These apply to: 
(a) Measures by Colombia relating to:  (i) controls on the import of used and imperfect 
goods, remains, scrap, waste, and residues pursuant to Resolution No. 001 of 
2 January 1995;  (ii) controls on the import of automotive vehicles, including used and new vehicles which are imported more than two years following their date of production, in accordance with Resolution No. 001 of 2 January 1995;  and (iii) a Department's monopoly on liquor production and power to establish duties on liquor imports from other Departments or countri es;  (iv) actions authorized by the 
WTO Dispute Settlement Body;  and 
(b) measures by Chile relating to:  (i) actions authorized by the WTO Dispute Settlement 
Body;  and (ii) imports of used vehicles. 
23. The Agreement does not contain specific provisi ons on MFN treatment.  However, Article 3.c 
of the ACE 24 states that when a signatory country reduces its customs duties on one or more goods 
imported from third countries, that are covered under the ACE 24, it shall adjust its customs duties on 
those imports from a signatory country accordingly. 
2. Import duties and charges, and quantitative restrictions 
24. Under Article 3.3, the Parties shall ensure that, in accordance with Article VIII(1) of 
GATT 1994 and its interpretative notes,  all fees and charges (other than customs duties, charges 
equivalent to an internal tax or other internal charge applied consisten tly with Article III(2) of 
GATT 1994, and anti-dumping and countervailing duties)  imposed on, or in connection with, imports 
are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a ta x on imports for fiscal purposes. 
                                                     
 
6 The Parties indicated that, as at August 2010, no negotiations have taken place with regard to 
telecommunications and no specific date has been set for the start of such negotiations. WT/REG272/1 
Page 12  
 
  25. Consular transactions, including related fees a nd charges, in connection with the import of 
any good are also prohibited (Article 3.3.2).  Each  Party shall make available and maintain through 
the internet or a comparable computer-based te lecommunications network, a list of all fees and 
charges imposed in connection w ith imports (Article 3.3.3).
7 
26. Under Article 3.4, neither Party shall adopt or  maintain import restrictions or prohibitions, 
except in accordance with Article XI of GAT T 1994 and its interpretative notes (which are 
incorporated, mutatis mutandis , into the Agreement).  These include:  (a) import price requirements, 
except as permitted to enforce countervailing and anti-dumping duty orders and undertakings; or 
(b) import licensing conditioned on the fulfilment of a performance requirement.  Exceptions to 
import restrictions are provided fo r in Annex 3.1 ( see paragraph 23). 
27. Article 3.6 establishes a Committee on Trad e in Goods, comprising representatives of the 
Parties.  It shall convene at the request of a Party or of the Commission, and consider any issue covered by Chapter 3 and the liberalization programme .  As part of its functions, the Committee shall 
support the development of bilateral trade through c onsultations on the possible acceleration of tariff 
elimination, and take into consid eration the existence of obstacles to  trade, in particular non-tariff 
barriers, and submit this issue to the Free Trade Commission for consideration.
8 
3. Liberalization of tariffs and trade 
(a) Liberalization under the ACE 24 
28. In accordance with Article 22.3.3 of the Agreem ent, the following provisions of the ACE 24 
continue to apply to trade between the Parties: 
(a) Articles 3 to 6 of Chapter II (Liberalization Programme); 
(b) Article 10 of Chapter IV (Automotive Sector); 
(c) Annexes 1 to 5; 
(d) Additional Protocols:  There are eight Add itional Protocols which, with the exception 
of Article 3 on certificates of origin under th e Fifth Protocol, apply to bilateral trade;  
and 
(e) Resolution No. 6/2006, which constitutes th e Eighth Additional Protocol, but which 
at the time of signature of the Agreement had not yet been formalized as a protocol. 
29. Under Article 3 of the ACE 24, the Parties were to eliminate all customs duties on bilateral 
imports by 1 January 1999, at the latest.  Differe nt phase out periods were established on the basis of 
product categories (see Table III.1 below).  Article 4 of the ACE 24 established that products included 
in Annex 2 remained subject to preferential tr eatment under the Partial Scope Agreement No. 14 
concluded by the Parties (i.e. duty-free on 01.01.1997).9  According to Article 5 of the ACE 24, the 
                                                      
7 Colombia has not provided this information.  Th e fees imposed by Chile are listed on the National 
Customs Service website (http://www.aduana.cl). 
8 The Parties indicated that the Committee on Trade in Goods convened for the first time in the context 
of the second meeting of the Free Trade Commissi on on 9 October 2009.  The Committee met for the second 
time on 6 May 2010. 
9 The First Additional Protocol to the ACE 24 established that Partial Scope Agreement No.°14 would 
no longer be in force as from 31 December 1993, the date when the ACE 24 entered into force. 
http://www.aladi.org/nsfaladi/textacdos.nsf/4d5c 18e55622e1040325749000756112/bf6234b97407327e032567e
f0051e198?OpenDocument .  WT/REG272/1 
 Page 13 
 
 
  tariff liberalization programme did not apply to pr oducts included in Chapter IV (Automotive Sector) 
and Annex 3 of the ACE 24.  Import of automotive products (as listed in Annexes 4 and 5) became 
duty-free on 1 January 1994 (Article 10 of the ACE 24) .  Products in Annex 3 are to be liberalized 
under the Sixth Additional Protocol to the ACE 24 over different periods, ending in 2011 
(i.e. duty-free on 01.01.2012).10  These cover some lines of HS chapters 2 (meat and edible meat 
offal);  4 (dairy products);  7 (vegetables);  8 (citrus fruit);  10 (cereals);  11 (milling industry 
products);  12 (oil seeds);  15 (animal and vegetable fa ts and oil);  17 (sugar and sugar confectionary);  
19 (pasta);  20 (fruit juices);  21 (extracts, essence s, concentrates of coffee);  23 (residues from food 
industries and animal food);  24 (tobacco products);  25 (sulphur);  27 (mineral fuels);  28 (inorganic 
chemicals);  29 (organic chemicals);  31 (other mi neral or chemical fertilizer s containing nitrogen and 
potassium);  32 (paints and varnishes);  34 (sodi um sulphate);  35 (glues);  38 (miscellaneous 
chemical products);  39 (plastics and articles th ereof);  40 (gum bases);  44 (wood and articles of 
wood);  52 (cotton);  54 (synthetic or artificial filame nts);  55 (synthetic or artificial staple fibres);  
56 (wadding, felt and non-wovens);  57 (carpets and other coverings);  58 (special woven fabrics);  
60 (knitted or crocheted fabrics) ;  61, 62 and 63 (articles of apparel and clothing accessories);  
69 (ceramic products);  70 (glass and glassware);  74 (copper and articles thereof);  85 (electrical 
machinery and equipment);  and 87 (motor vehicles). 
Table III.1 
Summary of the liberalization programme under the ACE 24 
Products Party Description Phase-out 
Colombia Products with duties of 20%, 15%, 10%, 5% 01.01.94 - 31.12.96  General programme 
Chile Products with duties of 11% (duty-free on 01.01.1997)  
Colombia Products with duties of 20%, 15%, 10%, 5% 01.01.94 - 31.12.98  Annex 1 
Chile Products with duties of 11% (duty-free on 01.01.99)  
Annex 2  Products subject to preferential treatment under the 
ACE 14 01.01.94 -31.12.96 
(duty-free on 01.01.97) 
Annexes 4 and 5  Automotive Sector None 
(duty-free on 01.01.94) 
Third Additional Protocol  Pharmaceutical products 
(as specified in Annexes A and B of the Protocol) 01.01.94 - 31.12.96 
(duty-free on 01.01.97) 
Fifth Additional Protocol  Products listed in Annexes A and B of the Protocol duty-free on 01.01.1996 
 Annex 2 duty-free as from May 1997 
 Annex 3  
Colombia Products with duties of 20%, 15%, 10%, 5% 1997a - 31.12.98 Sixth Additional Protocol 
Special liberalization 
programme for products listed 
in Annex 3 to the ACE 24  
Chile Products with duties of 11% (duty-free on 01.01.99)  
 Annex 4  
Colombia Products with duties of 20%, 15%, 10%, 5% 1997 - 31.12.00 
Chile Products with duties of 11% (duty-free on 01.01.01)  
 Annex 4 (soft coal only)  
Colombia Products with duties of 5% 1997 - 31.12.01 
Chile Products with duties of 11% (duty-free on 01.01.02) 
 Annex 5   
Colombia Products with duties of 20%, 15%, 10%, 5% 1997 - 31.12.03 
Chile Products with duties of 11% (duty-free on 01.01.04) 
 Annex 5 (crude oil only)  
Colombia Products with duties of 10% 1997 - 31.12.03  
Chile Products with duties of 11% (duty-free on 01.01.04)  
                                                      
10 Source:  http://www.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/  
ca84c8547ebcdf7b032567ef005449cd?OpenDocument . WT/REG272/1 
Page 14  
 
  Products Party Description Phase-out 
 Annex 6  
Colombia Products with duties of 20%, 15%, 10%, 5% 1997 - 31.12.05 
Chile Products with duties of 11% (duty-free on 01.01.06)   
 Annex 6 (oil derivates only, including propane and 
butane)  
Colombia Products with duties of 15%,10%, 5% 1997 - 31.12.05  
Chile Products with duties of 11% (duty-free on 01.01.06)  
 Annex 7   
Colombia Products with duties of 20%, 15%,10%, 5% 1997 - 31.12.11 
Chile Products with duties of 11% (duty-free on 01.01.12)  
 Annex 8  
Colombia Products with duties of 15% 1997 - 31.12.99  
Chile Products with duties of 11% (duty-free on 01.01.00) 
a The Sixth Additional Protocol entered into  force on 23 May 1997.  The first liberali zation step refers to the period 23.05.19 97 to 
31.12.1997. 
Source : The ACE 24 and related Protocols.  
30. The trade liberalization progra mme established under the ACE 24 is still being implemented;  
the Agreement covers the last phase of tariff reduc tions, which concerns products in Annex 7 of the 
Sixth Additional Protocol, which is to terminate at the end of 2011 (i.e. duty-free on 01.01.2012). 
(b) Liberalization under the Agreement 
31. Overall tariff liberalization commitments undert aken by the Parties under the Agreement, in 
terms of the number of tariff lines and value of trad e, is depicted in Tables III.2.A (Colombia) and 
III.2.B (Chile) below.  Colombia's MFN tariff sched ule comprised 7,260 lines at the HS 10-digit level 
in 2009;  of these, 265 lines were already duty-free on an  MFN basis before the entry into force of the 
Agreement, representing 3.7 per cent of total tariff lines and 3.8 per cent of its total imports from Chile in 2007-2008.  Upon entry into force of  the Agreement, 6,816 lines became duty-free, 
accounting for 93.9 per cent of total lines and 87.2 per cent of bilateral imports in 2007-2008.  Of 
these, all but 179 lines were duty-free for imports from Chile as a result of liberalization under the 
ACE 24 prior to the entry into force of the Agreemen t.  The remaining 179 lines are to be liberalized 
in 2012, resulting in a 100 per cent of tariffs and imports being liberalized. 
Table III.2 
Tariff reduction commitments under the Ag reement and corresponding average trade 
A. Colombia 
Duty phase-out period Number of lines % of total lines in 
Colombia tariff 
schedule Value of Colombia's 
imports from Chile 
(2007-2008) in million US$ % of Colombia's total 
imports from Chile 
2007-2008 
MFN duty-free (2009) 265 3.7 29.3 3.8 
2009 6,816 93.9 672.5 87.2 
2012 179 2.5 69.7 9.0 
Total 7,260 100.0 771.5 100.0 
Source : WTO estimates based on da ta provided by Colombia.  
32. In 2009, Chile's MFN tariff schedule comprised 7,715 tariff lines at the HS 10-digit level, of 
which eight had non- ad valorem  duties.11  Before the entry into force of the Agreement, only 35 lines 
were duty-free on an MFN basis, accounting for 0. 45 per cent of the total;  however, no trade was 
                                                      
11 These lines are subject to compound duties.  WT/REG272/1 
 Page 15 
 
 
  recorded between the Parties on those lines.  Upon entry into force, 7,552 lines were duty-free, 
representing 97.89 per cent of Chile's total lines a nd 96.74 per cent of its trade with Colombia in 
2007-2008.  These 7,552 lines had been liberalized unde r the ACE 24 prior to the entry into force of 
the Agreement.  The remaining 126 lines will be  liberalized in 2012, while two lines - wheat for 
sowing and marigold flour - remain subject to duties under the Agreement.  By the end of the 
implementation period, Chile will ha ve liberalized 99.97 per cent of tariff lines and 100 per cent of 
imports from Colombia. 
Table III.2 
Tariff reduction commitments under the Ag reement and corresponding average trade 
B. Chile 
Duty phase-out period Number of lines % of total lines in Chiles 
tariff schedule Value of Chile's imports from 
Colombia (2007-2008) 
in million US$ % of Chile's total 
imports from 
Colombia 2007-2008 
MFN duty-free (2009) 35 0.45 0.00 0.00 
2009 7,552 97.89 1,455.05 96.74 
2012 126 1.63 49.10 3.26 
Remain dutiable 2 0.03 0.00 0.00 
Total 7,715 100.00 1,504.15 100.00 
Source : WTO estimates based on data provided by Chile.  
(i) Colombia 
33. A more detailed perspective of Colombia's  tariff elimination under the Agreement is 
presented in Chart III.1.  Only a few tariff lines we re already duty-free on an MFN basis in 2009.  
Upon the entry into force of the Agreement, a numb er of lines (6,819), which had been subject to 
duties of up to 10 per cent or 20 per cent, became dut y-free.  Liberalization of tariffs on 29 lines with 
duties between 40 per cent and 50 per cent is to take  place at the end of the implementation period in 
2012. 
0 1.500 3.000 4.500 6.000 7.50020092012Chart III.1
Colombia' duty eliminati on under the AgreementYear of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by the Colombia.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: ≤40% >50%
 WT/REG272/1 
Page 16  
 
  34. Colombia's tariff reduction commitments under the Agreement, organized by HS section 
product categories, are shown in Table III.3 below.   Of the 7,260 lines forming Colombia's tariff 
schedule in 2009, 265 lines were already duty-free on an  MFN basis before the entry into force of the 
Agreement.  The vast majority of these lines fall under HS section VI (chemicals and chemicals products).  The bulk of liberalization occurred be fore the Agreement entered into force, when 
Colombia eliminated duties on 6,816 tariff lin es under the ACE 24 liberalization programme.  
Liberalization concerned chemical products , base metals (HS section XV), and textiles 
(HS section XI).  The 179 lines to be liberaliz ed under the Agreement in 2012 mainly concern 
agricultural products in HS sections I-IV. 
Table III.3 
Colombia:  Tariff reduction under the Agreement, by HS section 
Number of duty-free lines  HS section and description  MFN 
average %  Total No. of 
lines  MFN 2009
duty-free  2009 2012 
I Live animals and animal products 24.7 301  246 55 
II Vegetable products 14.7 386  344 42 
III Animal or vegetable fats and oils 17.4 64  20 44 
IV Prepared foods etc. 18.4 293  263 30 
V Minerals 6.2 192 1 191  
VI Chemicals and chemical products 6.5 1,417 174 1,235 8 
VII Plastics and rubber 13.2 315 8 307  
VIII Hides and skins 12.4 78  78  
IX Wood and articles 12.5 107  107  
X Pulp, paper etc. 12.5 202 14 188  
XI Textiles and textile s articles 18.1 935 1 934  
XII Footwear, headgear 18.8 56  56  
XIII Articles of stone 13.9 168  168  
XIV Precious stones, etc. 11.1 57  57  
XV Base metals and base me tals products 10.5 714 18 696  
XVI Machinery 9.4 1,229 35 1,194  
XVII Transport equipment 14.5 229 12 217  
XVIII Precision equipment 7.1 285 2 283  
XIV Arms and ammunition 17.5 69  69  
XX Misc. manufactured articles 18.0 156  156  
XXI Works of art, etc. 20.0 7  7  
Total 12.2 7,260 265 6,816 179 
Note: Tariff lines subject to in-quota rates are excluded in the computation. 
Source : WTO estimates based on da ta provided by Colombia.  
(ii) Chile 
35. Table III.4 shows Chile's tariff elimination commitments vis-à-vis  Colombia by HS section 
product categories.  Of the 7,715 lines forming Chile's tariff schedule in 2009, 35 were duty-free on a 
MFN basis before the entry into fo rce of the Agreement and were mainly concentrated in transport 
equipment (HS section XVII).  Upon the entry into force of the Agreement, Chile had already liberalized almost all tariff lines under the ACE 24.  The majority of these lines fall under HS sections VI (chemicals), XVI (machinery), and XI  (textiles).  The 126 lines to be liberalized under 
the Agreement in 2012 mainly concern the agricultu ral products found in HS sections I to IV.  The 
two lines retaining an average duty of 3 per cent at the end of the implementation period (HS 1001.10.00.01 - wheat for sowing - and HS 2308.00.00.01 - marigold flour) are found in sections II to IV.  WT/REG272/1 
 Page 17 
 
 
  Table III.4 
Chile:  Tariff reduction under the Agreement, by HS section 
No. of duty-free 
lines in HS section and description  MFN 
average %Total 
No. of linesMFN 
2009 
duty-free2009 2012 Remaining 
dutiable 
lines  Avg. Final 
Tariff 
(Dutiable)
I Live animals and animal products 6.1 604  533 71   
II Vegetable products 6.0 405  389 15 1 3.0a 
III Animal or vegetable fats and oils 6.0 60  51 9   
IV Prepared foods etc. 6.0 415  383 31 1 3.0a 
V Minerals 6.0 196  196    
VI Chemicals and chemical products 6.0 1,232  1,232    
VII Plastics and rubber 6.0 304  304    
VIII Hides and skins 6.0 81  81    
IX Wood and articles 6.0 158  158    
X Pulp, paper etc. 5.9 209 4 205    
XI Textiles and textiles ar ticles 6.0 1,093  1,093    
XII Footwear, headgear 6.0 109  109    
XIII Articles of stone 6.0 187  187    
XIV Precious stones, etc. 6.0 60  60    
XV Base metals and base meta ls products 6.0 637  637    
XVI Machinery 6.0 1,142 2 1,140    
XVII Transport equipment 5.5 333 29 304    
XVIII Precision equipment 6.0 258  258    
XIX Arms and ammunition 6.0 23  23    
XX Misc. manufactured articles 6.0 202  202    
XXI Works of art, etc. 6.0 7  7    
Total 6.0 7,715 35 7,552 126 2 3.0 
a Combination of ad valorem  and ad valorem  part of compound duties. 
Note: Tariff lines subject to in-quota rates are excluded in the computation;  for the calculation of averages, specific rates are excluded 
and the ad valorem  part of alternate rates are included. 
Source : WTO estimates based on data provided by Chile.  
36. Chart III.2 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
Chile's average preferential and MFN rates for lines subject to preferential duties only.  For 
HS sections II (vegetable products) and IV (prepa red foodstuff) preferential duties are half of the 
MFN duties:  3 per cent compared to an MFN rate of 6 per cent. WT/REG272/1 
Page 18  
 
  02468 1 0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.2
Chile:  Average of dutiable rates, by HS Section
HS Chapter  
Source : WTO Secretariat estimates, based on data provided by Chile.Average rate of duty (%)
MFN Preferential
 
 
37. Chart III.3 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
Chile's average preferential and MFN rates for lines subject to preferential duties only.  For 
HS chapters 10 (cereals) and 23 (r esidues and waste from the food indus tries, prepared animal feed) 
preferential duties are half of the MFN duties, 3 pe r cent compared to an MFN rate of 6 per cent.  WT/REG272/1 
 Page 19 
 
 
  024681023Chart III.3
Chile:  Average of dutiable rates, by HS Chapter
HS Chapter  
Source : WTO Secretariat estimates, based on data provided by Chile.Average rate of duty (%)
MFN Preferential
 
 
4. Tariff Rate Quotas 
38. Under the Agreement, market ac cess is also granted through ta riff rate quotas (TRQs) (see 
Table III.5 below) which were established prior to  entry into force of the Agreement, under the 
Seventh and Eighth Additional Protocols to the ACE 24.12  Accordingly, Colombia applies TRQs to 
imports from Chile of Gouda cheese (HS 0406.90.40),  which is subject, for quantities imported above 
the quota, to the Andean Price Band System (see  Section III.A.8 below).  Chile applies TRQs to 
imports from Colombia of sugar (HS 1701.91.00;  1701.99.10;  1701.99.20;  1701.99.90) and milk 
products (HS 0401.10.00).  Furthermore, both Parti es subject bovine meat imports from each other 
(HS 0201.30) to TRQs, whose quota is to increase annually by 10 per cent. 
39. The in-quota duty is zero for all products, whereas the out-of-quota duty corresponds to the 
preferential rate as indicated in each Party's tariff sch edule.  As from 1 January 2012, TRQs shall be 
removed and imports of these products  will take place free of duties. 
Table III.5 
TRQs applied by the Parties under the Agreement 
Party HS line Quota (tonnes) In-quota duty  (%) Out-of quota duty MFN duty (2009) 
Colombia 0406.90.40 1,000 0 preferential 
(subject to the Andean 
Price Band System) SAFP 
                                                      
12 The texts of the Seventh and Eighth Additional Protocols are available at 
http://www.aladi.org /nsfaladi/textacdos.n sf/vaceweb?OpenView&Start= 1&Count=100&Expand=10#10 
(http://www.aladi.org/n sfaladi/textacdos.nsf/vaceweb?OpenV iew&Start=1&Count=100&Expand=10 ). WT/REG272/1 
Page 20  
 
  Party HS line Quota (tonnes) In-quota duty  (%) Out-of quota duty MFN duty (2009) 
0401.10.00 1,000 0 3% 6% 
1701.91.00 0 3% 6% 
1701.99.10 0 3% 6% 
1701.99.20 0 3% 6% Chile 
1701.99.90 6,000 (+15,000 only for 
HS 1701.91.00) 
0 3% 6% 
Both: 
Colombia 
 
Chile  
0201.30.00.10 
0201.30.00.90 
0201.30.00  
 
3,000+ 
10% annual increase 0  
preferential 
(-50% in 2009) 
3%  
80% 
 
6% 
Source : Data provided by the Parties.  
40. While Colombia maintains TRQs at the multila teral level on meat, dried beans, certain 
cereals, certain products of the m illing industry, oilseeds, animals or vegetable fats and oils, sugar and 
sugar products, orange juice, residues and waste from food industries, dextrins and other modified 
starches, industrial monocarboxylic fatty acids and cotton13, tariffs on all these products from Chile, 
including Gouda cheese and bovine meat that ma intain TRQs under the Agreement, are to be 
liberalized in 2012.  Chile maintains multilateral TRQs for sugar subject to an annual quota of 
60,000 tonnes for which it has opened an additional quota of 6,000 tonnes for imports from Colombia.
14  It has also opened a new TRQ for imports of bovine meat from Colombia.  These quotas 
are additional to those of the WTO. 
5. Rules of origin 
41. Chapter 4 provides for disciplines on rules of origin (Section A) and customs procedures 
(Section B).  Originating goods are defined in Article 4.1, as follows: 
(a) Goods totally obtained or produced in one or both Parties15; 
(b) goods produced in one or both Parties exclus ively from originating materials;  or 
(c) goods produced in one or both Parties by non- originating materials that conform to a 
change in tariff classification (CTC), a regional value-content (RVC) requirement, or 
any other conditions as specified in Annex 4.1. 
42. The CTC rule applies to products listed in A nnex 4.1 and requires a change of chapter, 
heading or subheading (HS 2, 4 and 6-digit levels).  For most agricultural products, the CTC rule is 
the only criterion (HS chapters 1-14;  16-19;  a nd 22-23) or applied in conjunction with the RVC 
requirement (HS chapters 15-21).  For most industr ial products (HS chapters 25-43;  45-46;  48;  
50-71;  73-76;  and 78-96), the CTC rule and the RV C requirement are applied alternately;  in most 
cases the RVC shall be no less than 50 per cent.16  Notwithstanding any of the line-by-line rules, the 
"standard materials" rule may be applied as an  alternative criterion to any good classified in 
                                                      
13 See Document G/AG/N/COL/37, 9 October 2009. 
14 See Document G/AG/N/CHL/27, 31 March 2009. 
15 The detailed list of goods totally obtained or produced in the territory of one or both Parties is 
contained in Article 4.26. 
16 For a few lines of HS chapters 84, 85, and 87 the RVC may vary between 35 per cent and 40 per 
cent, whereas for one line in HS chapte r 15 and one line in HS chapter 21 it reaches 70 per cent and 60 per cent, 
respectively.  WT/REG272/1 
 Page 21 
 
 
  HS chapters 28, 29, 32 and 38, and the "chemical reaction" rule may be applied as an alternative 
measure to any good classified in HS chapters 27 to 40 in order to confer originating status.17 
43. RVC can be calculated as the di fference between the transacti on value of the good, adjusted 
on a free on board (FOB) basis, and the transaction value of non-originating materials, adjusted on a 
CIF basis.  These values shall be calculated accord ing to the principles set forth in the Customs 
Valuation Agreement.18  The value of non-originating materials used by the producer in the 
production of a good shall not include the value of th ose non-originating materials used by:  (a) other 
producers in the production of an originating material;  or (b) the producer of an originating good that is self-produced.  All costs related to the calculati on of the RVC shall be registered and kept in 
accordance with the generally accepted accounting principles applicable in the territory of the Party in 
which the good is produced (Article 4.2). 
44. Bilateral cumulation of materials and inputs ap plies between the Parties (Article 4.4).  
According to Article 4.5, a de minimis  rule applies as follows:  (a) if the value of all non-originating 
materials that do not comply with the required CTC is less than 10 per cent of the transaction value, 
the good will be considered originating and the CT C requirement waived;  and (b) for textiles and 
clothing (HS chapters 50-63), if the good is consid ered to be non-originating because the fibres and 
the yarns used do not comply with the CTC requi rement, it will nonetheless be considered originating 
if their total weight does not represent more than 10 per cent of the material's total weight.  The 
de minimis  rule does not apply to:  (a) non-originating ma terials used in the production of agricultural 
goods (HS chapters 1-24), unless the non-originating material is under a different subheading than that of the good for which the origin is to be de termined in accordance with Article 4.5;  and 
(b) non-originating materials included in HS chapter 15 used for the production of a good classified 
under headings 15.01 to 15.15. 
45. Other provisions include those relating to fungibl e goods and materials (Article 4.6);  sets and 
assortments of goods (Article 4.7);  accessories, sp are parts and tools (Article 4.8);  packaging 
materials and containers for retail sale and shipment  (Articles 4.9 and 4.10);   indirect materials 
(Article 4.11);  and exhibitions (A rticle 4.13).  Article 4.12 states that, outside the territory of the 
Parties, only those operations needed for transhipment or for keeping the good in appropriate conditions are authorized, and that the good must be  kept under the control and surveillance of the 
customs authorities in the territory of a non-party in order to maintain the originating status. 
6. Export duties and charges, and quantitative restrictions 
46. Article 3.2 prohibits the Parties from adopting or  maintaining any export duty, tax, or other 
charge, unless it is applied on a national treatment basi s.  Exceptions to Article 3.2 are contained in 
Annex 3.2 and cover measures adopted by Colombia w ith respect to:  (a) contributions to the export 
                                                     
 
17 "Standard materials", including standard solu tions, are preparations suitable for analytical, 
calibrating or referencing uses having precise degrees of purity or proportions, which are certified by the 
manufacturer.  A "chemical reaction" is a process includin g a biochemical process, which results in a molecule 
with a new structure by breaking intramolecular bonds, or by forming new intramolecular bonds, or by altering 
the spatial arrangement of atoms in a molecule.  The follo wings are not considered to be chemical reactions for 
the purposes of the Agreement:  dissolving in water or other solvents;  the elimination of solvents including solvent water;  or the addition or elim ination of water of crystallisation.  Chemical reactions must occur in the 
territory of any of the Parties in order for them  to confer originating status to a product. 
18 It is further specified that if the producer of a good does not expo rt it directly, the transaction value 
shall be adjusted up to the point at which the purchaser receives the good in the terr itory where the producer is 
located (Article 4.2.2), and that if the producer of the go od acquires a non-originating material in the territory of 
the Party in which it is located, the value of the non-originating material shall not include freight, insurance, costs of packaging and any other costs incurred in trans porting the material from the supplier's warehouse to the 
place where the producer is located (Article 4.2.4). WT/REG272/1 
Page 22  
 
  of coffee, in accordance with Law No. 101 of 1993;  and (b) contributions to the export of emeralds, 
in conformity with Law No. 488 of 1988. 
47. The Parties shall ensure, in accordance with Article VIII(1) of GATT 1994, that all fees and 
charges of whatever character (oth er than customs duties, charges equivalent to an internal tax or 
other internal charge applied consistently w ith Article III(2) of GATT 1994, and anti-dumping and 
countervailing duties) imposed on, or in connecti on with export are limited in amount to the 
approximate cost of services rendered and do not repr esent an indirect protection to domestic goods or 
a tax on exports for fiscal purposes (Article 3.3.1).  Each Party shall make available and maintain 
through the internet a list of all fees and charges im posed in connection with exports (Article 3.3.3). 
48. Article 3.4 prevents the Parties from adopting or maintaining any prohibition or restriction on 
exports, except as provided for in Article XI of GATT 1994, including its interpretative notes (which 
are incorporated into the Agreem ent).  These include:  (a) export  price requirements, except as 
permitted by countervailing and anti- dumping duty orders and undertaki ngs;  or (b) voluntary export 
restraints inconsistent with Article VI of GATT 1994, as implemented under Article 18 of the 
WTO Agreement on Subsidies and Countervailing M easures and Article 8.1 of the WTO Agreement 
on Implementation of Article VI of the GATT 1994. 
7. Regulatory provisions on trade in goods 
(a) Standards 
(i) Sanitary and Phytosanitary Measures 
49. The objective of Chapter 5 is to protect hu man, animal, and vegetable life and health, 
facilitate trade between the Parties, and prom ote the implementation of the WTO Agreement on 
Sanitary and Phytosanitary Measures (SPS Agreement) (Article 6.1). 
50. SPS measures under the Agreement shall be governed by the WTO SPS Agreement and the 
decisions adopted by the WTO SPS Committee.  To this  end, the definitions c ontained in Annex A of 
the WTO SPS Agreement, as well as those of the relevant international organizations - World 
Organization for Animal Health (OIE), Internati onal Plant Protection Convention (IPPC), and Codex 
Alimentarius - shall apply to the Agreement (Article 6.2). 
51. The Parties shall endeavour to harmonize their SPS measures in accordan ce with Article 3 of 
the WTO SPS Agreement, particularly when ther e are differences in the adoption of provisions 
established or recommended by competent international organizations (Article 6.4).  The Parties shall 
agree on a procedure for recognizing the principle of equivalence, as set out in Article 4 of the WTO SPS Agreement, with respect to an individual measure, a group of measures or regulations 
applicable to a product, or a group of products.  Di scussions on the adoption of such a procedure shall 
start within six months from the entry into for ce of the Agreement and terminate on a date agreed 
between the Parties (Article 6.5).
19  Risk assessment procedures shall be based on relevant 
international standard, as stated in Article 5 of the WTO SPS Agreement or, where not available, on a 
procedure mutually agreed between the Parties.  The regular flow of bilateral trade shall not be 
disrupted by risk assessment procedures, except wh en an emergency situation arises (Article 6.6).20  
The Parties shall recognize expeditiously the p est or disease free area or low pest or disease 
                                                      
19 The Parties indicated that a proc edure for recognizing the principle of equivalence was agreed on at 
the first meeting of the Committee on Sanitary and Phytosan itary Measures in the cont ext of the second meeting 
of the Free Trade Commission held on 9 October 2009. 
20 Colombia indicated that an "emergency situation" is declared by the competent authorities when it is 
necessary to protect health and life.  WT/REG272/1 
 Page 23 
 
 
  prevalence status as recognized by relevant intern ational organizations, in accordance with Article 6 
of the WTO SPS Agreement;  in the absence of intern ational recognition, the Parties shall agree on a 
bilateral procedure.  Discussions on the adoption of such a procedure shall begin within six months 
from the Agreement's entry into fo rce and terminate on a date agreed by the Parties (Article 6.7).21  
Control, inspection and approval procedures shall be  harmonized with international standards of the 
OIE, IPPC and the Codex Alimentarius.  In accordance with Article 8 and Annex C of the 
WTO SPS Agreement, the Parties shall establish a pro cedure for the functioning of control, inspection 
and approval procedures, negotiations for which shal l start within six months from the Agreement's 
entry into force and terminate on a date agreed by the Parties (Article 6.8).22 
52. The Committee on Sanitary and Phytosanita ry Measures (SPS Committee) has been 
established under Article 6.10.  It shall comprise delegates from the Parties' competent authorities.23  
The SPS Committee shall convene at least once a year, a nd shall establish its own rules of procedures.  
It shall, among other functions, adopt and implemen t decisions on any provisions of the Chapter.  
Such decisions shall be implemented under each Part y's jurisdiction, where appropriate, and shall be 
notified to the Commission.24 
53. The SPS Committee also acts as a forum for technical consultations on any SPS measure that 
may negatively affect trade between the Parties.  Technical consultations shall take place within 
30 days from the submission of the request by a Part y, unless otherwise agreed.  In the absence of a 
satisfactory solution, such consultations shall repl ace those provided for in Article 16.4 (Article 6.11). 
                                                      
21 The Parties indicated that the bilateral procedure wa s agreed on at the first meeting of the Committee 
on Sanitary and Phytosanitary Measures within the framework of the second meeting of the Free Trade 
Commission on 9 October 2009.  On this occasion, th e Committee agreed to inst ruct the phytosanitary 
authorities of Colombia (Colombian Agricultural Institute ) and Chile (Agriculture and Livestock Service) to 
specify at their bilateral meeting that pest risk a ssessment and mitigation information can be sent by the 
exporting country as a preliminary document for the cons ideration of the importing country, in accordance with 
Article 6.6.3, Chapter 6, of the Agreement.  At the bila teral meeting of the phytosanitary authorities, the Parties 
agreed on the general guidelines for pest risk analysis (PRA).  The exporting countr y will therefore be able to 
conduct stages 1 and 2 of the PRA, based on International Standard for Phytosanitary Measures (ISPM) No. 11 of the International Plant Protection Convention (IPPC), including the categorization of pests.  Where the 
exporting country conducts stages 1 and 2 of the PRA, for pests present in the exporting country and cited in the 
relevant literature as pests of the plant species, but not reported in that species in the country, it must provide 
supporting information as to the non-o ccurrence of the pest in the plant sp ecies, which would prevent the pest 
from being considered as a phytosanitary import requirement or make it subject to less restrictive risk mitigation measures.  The provision of such information particularly concerns pests that would be highly likely to cause an 
economic impact for the importing coun try.  The exporting country may also submit proposals for work plans 
for the consideration of the importing country. 
22 The Parties indicated that at the first meeting of the Committee on Sanitary and Phytosanitary 
Measures the bilateral procedure was established in resp ect of product inspection, su rveillance and certification 
procedures, the recognition of areas which are pest and di sease-free and with low pest or disease prevalence, and 
the equivalence recognition process.  The Parties agreed to work together on implementing the 
WTO Agreement, within the framework of the WTO/SP S Committee, in the above -mentioned areas, leaving 
open the possibility of moving forward bilaterally on procedures  of interest at the request of either of the Parties. 
23 The Committee on Sanitary and Phytosanitary Measures was established and began its work at the 
second meeting of the Free Trade Commission held on 9 October 2009.  By August 2010, the Committee had 
met twice (in October 2009 in Colombia and in May 2010 in Chile).  Annex 6.10 provides for the list of each Party's competent authorities in various fields:  SPS, wate r animals' health, and food safety.  The Coordinators 
are:  for Colombia, the Ministry of Trade, Industry an d Tourism, Vice-Ministry of External Trade;  and for 
Chile, the Ministry of External Relations, General Directorate of International Economic Affairs. 
24 With respect to Chile, the d ecisions of the SPS Committee shall be implemented by means of 
"executive agreements", in conformity with the "Constitución Política". WT/REG272/1 
Page 24  
 
  (ii) Technical Barriers to Trade 
54. The objectives of Chapter 7 are to promote a nd facilitate trade and achieve better market 
access conditions through the implementation of th e WTO Agreement on Technical Barriers to Trade 
(TBT Agreement), to eliminate technical barriers to trade, and to impr ove bilateral cooperation 
(Article 7.1).  It applies to the elaboration, adoption, and application of standards, technical 
regulations and conformity assessment procedures - including those related to metrology - of the 
Parties, at national or local level, that may affect, di rectly or indirectly, bilateral trade.  Chapter 7 does 
not apply to:  SPS measures (under Chapter 6) , and purchasing specifications prepared by 
governmental bodies (under Chapter 8) (Article 7.2).  The Parties reaffirm their rights and obligations 
under the WTO TBT Agreement (Article 7.3). 
55. Under Article 7.4, to determine whether an international standard, guide or recommendation 
within the meaning of Articles 2 and 5 and Anne x 3 of the WTO TBT Agreement exists, each Party 
shall apply the principles set out in the Decisions and Recommendations adopted by the WTO TBT Committee since 1 January 1995, G/TBT/1/Rev.8, of 23 May 2002, Section IX (Decision of the Committee on Principles for the Developm ent of International Standards, Guides and 
Recommendations with relation to Articles 2 and 5 and Annex 3 of the WTO TBT Agreement) issued 
by the WTO TBT Committee. 
56. Technical regulations shall not restrict trade more than it is necessary to achieve a legitimate 
objective, such as:  national security, protection of human, animal, or vegetable life and health, 
protection of the environment.  National and MFN treat ment are accorded to goods of the Parties with 
respect to technical regulations.  Each Party sh all give favourable consideration to accept as 
equivalent the other Party's technical regulations - even if they are different from its own - provided 
that they produce equivalent outcomes to those of its own technical regulations in meeting legitimate 
objectives or achieving the same level of protection.  A Party shall, upon request by the other Party, 
explain why it does not accept as equivalent a techni cal regulation of the other Party (Article 7.6). 
57. The Parties undertake to harmonize their respective conformity assessment procedures, also 
through a number of existing mechanisms as listed in  Article 7.7.  Each Party shall accredit, approve, 
licence or otherwise recognize conformity assessment bodies in the territory of the other Party in conformity with the principle of national treatment.  Where a Party does not accept the results of conformity assessment procedures of the other Party, or does not respect the principle of national treatment, or refuses to engage or conclude negotia tions with the other Part y for the recognition of 
conformity assessment results by its assessment bodi es, it shall, upon request by the other Party, 
explain the reasons for its decision. 
58. Article 7.9 on transparency requires the Parties to transmit electronically through their contact 
points (established in accordance with Article 10 of the WTO TBT Agreement) the proposed 
technical regulations and/or conformity assessments at  the same time as their notification to the WTO.  
The other Party has at least 60 days from the tr ansmission of the notification to comment on the 
measure and request consultations.  In case of le gitimate urgent problems, a Party adopting the 
technical regulations and/or conformity assessment shall send electronically such documents to the 
other Party at the same time it notifies the WTO.  Each Party is required to publish or notify, to the 
extent possible, its technical regulations, whether th ey are in accordance with the technical content of 
the relevant international standards or not, and it s responses to significant comments at the same time 
as the publication of the technical regulation or co nformity assessment procedure adopted or to be 
adopted.  Article 7.9 shall be implemented as soon as it is practicable and, under no circumstances, 
later than three years from the entr y into force of the Agreement. 
59. Article 7.11 promotes technical cooperation betw een the Parties, whereas trade facilitation 
measures are provided for in Article 7.5.  Any in formation or explanation shall be provided, upon  WT/REG272/1 
 Page 25 
 
 
  request by a Party, in printed form or electronically , within 60 days from the request;  this period shall 
be extended upon justification by th e informing Party (Article 7.12). 
60. The Committee on Technical Barriers to Trade (TBT Committee) has been established under 
Article 7.10, consisting of representatives of the Parties.25  It shall convene at least once a year.  The 
TBT Committee shall, inter alia , monitor the implementation and administration of the Chapter, and 
deal with any issue related to it, hold consultations , upon request by a Party, on any matter related to 
the Chapter, report to the Commission, and set up wo rking groups to deal with specific issues related 
to the Chapter.  Consultations (within the meani ng of Article 16.4) within the TBT Committee shall 
be concluded within 60 days from the request.26 
(b) Safeguard mechanisms 
(i) Global safeguards 
61. The Parties reaffirm their rights and obliga tions under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards.  The Agreement does not  confer to the Parties any additional rights 
and obligations (Article 8.6). 
(ii) Bilateral safeguards 
62. Party may apply a safeguard measure when, as a result of the reduction or elimination of a 
customs duty under the Agreement, a good originating in  the other Party is imported into its territory 
in such increased quantities, in ab solute terms or relative to dom estic production, and under such 
conditions as to constitute a cause of  serious injury, or threat thereof, to a domestic industry producing 
a like or directly competitive good (Article 8.1).  Safeguard measures may be applied only until when 
the good subject to safeguard becomes duty-free under the Agreement's phase out period (Article 8.7). 
63. The importing Party may, to the extent necessary to prevent or remedy serious injury, or 
threat thereof, and to facilitate adjustment:  (a ) suspend the future reduction of customs duty provided 
for by the Agreement;  or (b) increase customs du ty to a level not exceeding the lesser of the 
MFN applied rate at the time the measure is applie d and on the day immediately preceding the date of 
the entry into force of the Agreement (Article 8.1. 2).  Tariff rate quotas or quantitative restrictions are 
not permitted as a form of safeguard. 
64. The importing Party shall not apply a global safeguard on goods originating from the other 
Party when imports of such goods does not consti tute more than 3 per cent of the total, on the 
condition that the exporting Party an d other developing countries with a share in imports that is less 
than 3 per cent, do not represent collectively more than 9 per cent of total imports of the good in 
question (Article 8.1.4).  The same good cannot be s ubject, at the same time, to a bilateral safeguard 
under the Agreement and to a measure pursuant to Article XIX of GATT 1994 (Article 8.1.3). 
65. Safeguard measures shall last no more than two years, extendable for an additional year, upon 
determination by the competent authority that th e measure is still necessary to prevent or remedy 
serious injury and to facilitate adjustment, and there is evidence that the domestic industry is 
adjusting.  Where the measure is being applied for more than one year, the applying Party shall 
progressively liberalize it at regular intervals durin g the remaining period.  Safeguard measures shall 
                                                      
25 These are:  for Colombia, the Mini stry of Trade, Industry or Tourism,  or its successor;  and for Chile, 
the Ministry of Economy, through the Department of External Trade, or its successor (Annex 7.10). 
26 The Parties indicated that the TBT Committee was established in the context of the second meeting 
of the Free Trade Commission on 9 Oc tober 2009.  On this occasion, the Committee's terms of reference were 
agreed on and the first issues of interest to both parties were raised. WT/REG272/1 
Page 26  
 
  not be maintained once the transition period has elapsed.  Upon termination of the safeguard, the 
applicable customs duty shall be that indicated in  the liberalization programme, as if the safeguard 
was never applied (Article 8.2). 
66. Under Article 8.3 each Party may apply a safeguard measure only after completion of an 
investigation by its competent authority, in accordance with Articles 3 and 4.2(c) of the 
WTO Agreement on Safeguards, which are incorporated, mutatis mutandis , into the Agreement.
27  
The investigation shall conform with Article 4.2( a) of the WTO Agreement on Safeguards, which is 
also incorporated into the Agre ement.  Each Party shall promptly notify the other of:  (a) the 
beginning of an investigation;  (b) the determina tion of the existence of serious injury, or threat 
thereof;  and (c) the decision to apply, modify, or  extend a safeguard measure (Article 8.4.1).  Upon 
request by the Party whose product is subject to inve stigation, the Party carrying out the investigation 
shall hold consultations to review any of the not ifications described a bove or any other public 
notification or information issued by the compet ent authority with respect to the investigation 
(Article 8.4.3).  After consultations, the Party applying the safeguard shall communicate a mutually 
agreed compensation in the form of a tariff concession  with a substantially equivalent effect on trade 
or with an equivalent value to the additional duti es expected from the application of the safeguard.  
Consultations shall be held within 30 days from the application of the measure.  In the absence of an 
agreement on compensation within the time-limit, th e affected Party may suspend the application of 
preferential tariffs with equivalent effect to trad e with the other Party.  The suspension must be 
notified 30 days in advance.  The recourse to co mpensation and suspension of benefits shall lapse 
once the customs duty returns to the level est ablished under the liberalization programme 
(Article 8.5). 
67. Article 21.5 allows the adoption or maintenance by  the Parties of restrictions to safeguard the 
balance of payments.  BOP measures must be a pplied on a non-discriminatory basis, for a limited 
time, and prove necessary to remedy the difficulty.  They shall be in accordance with the relevant 
provisions of the WTO Agreements and the International Monetary Fund Agreement. 
(c) Anti-dumping and countervailing measures 
68. The Parties reaffirm their rights and obliga tions under the WTO agreement on anti-dumping 
and countervailing duties.  The Agreement, incl uding the Chapter on dispute settlement, shall not 
impose any additional right or obligation on the Pa rties with regard to measures on anti-dumping and 
countervailing duties (Article 8.8). 
(d) Subsidies and State aid 
69. Article 3.5 prohibits the introduction or mainte nance of any export subsidy on agricultural 
products destined for the territory of the Parties.  To this end, the definition of export subsides 
coincides with that under Article 1(e) of the WTO Agreement on Agriculture, including any of its 
modifications.  The Parties share the objective of  multilateral elimination of export subsidies on 
agricultural products and shall work  towards an agreement in the WT O to eliminate existing subsidies 
and to prevent the introduction of new ones. 
(e) Customs-related procedures 
70. Section B of Chapter 4 deals with customs pro cedures related to origin.  The importer shall 
claim preferential treatment by means of a written or  electronic certificate of origin issued by the 
                                                      
27 The competent authority for investigation is, for Colombia, the Subdir ectorate of Commercial 
Practices of the Ministry of Trade, Industry, and Tourism;  and for Chile, the National Commission for 
Investigation on Price Distortion of Imported Goods (Article 8.7).  WT/REG272/1 
 Page 27 
 
 
  competent authority, or other delegated private or public entities28, of the exporting Party upon request 
by the exporter.29  The model of the certificate of origin is attached in Annex 4.14 and is valid for one 
year from the date of issuance and can be modified by the Commission (Article 4.14). 
71. The certificate of origin is waived for im ports whose value is below US$1,500 (or its 
equivalent in either Party's currency), or any othe r value as agreed by the Parties, provided that the 
import is not part of a series of imports that may reasonably be considered as circumventing the 
certification requirements;  or when the importing Party does not require the importer to prove the origin of the good (Article 4.16). 
72. Where the importer did not claim preferential tr eatment for originating goods imported in its 
territory, it shall, within one year from the date of import, apply for a refund of any excess customs 
duties paid, upon production of a written declaration, or  certificate of origin, and other such evidence 
as the customs authority may require (Article 4.18).  If the exporter considers that the certificate of 
origin contains incorrect information, it shall i mmediately inform in writing the competent authority 
or delegated entity.  Where the exporter submits a fa lse certificate of origin or information, which was 
used for obtaining preferential tariff treatment, it will  be subject to sanctions similar to those applied 
to an importer in its territory for the infringement  of its customs laws a nd regulations.  However, 
neither Party may impose sanctions on an exporter that  has provided false information if it voluntarily 
informs in writing the competent authority or delega ted entity, provided that the customs authority of 
the importing Party has not yet initiated the verifica tion process or notified the revision, in accordance 
with each Party's legislation (Article 4.19).  Sa nctions may be penal, civil, or administrative 
(Article 4.22). 
73. Article 4.20 requires the competent authority or delegated entity, exporter,  and importer of the 
Parties to keep records of all th e information related to the origin of a good for which preferential 
treatment was claimed for a period of five years after the date of issuance of the certificate or the date of import.  Nonetheless, the Parties shall protect  confidential information in accordance with their 
respective legislations (Article 4.23).  The customs authority of the importing Party may deny 
preferential treatment to a good subject to verificati on of origin if the exporter or producer of that 
good does not provide the registry and documents referred to in Article 4.20 (Article 4.21.15). 
74. Verification of origin may be carried out by  the importing Party (Article 4.21) through: 
(a) Request for information or written questionna ires to the exporter or producer in the 
territory of the other Party, responses to wh ich should be provided within 30 days 
from the date of receipt, otherwise the importing Party may deny preferential 
treatment; 
(b) verification visits to the premises of the exporter or producer in the territory of the 
other Party for which written consent must be given within 30 days from the receipt of notification, otherwise the importing Party may deny preferential treatment;  or 
(c) any other procedure as agreed between the Parties. 
                                                     
 
28 According to Article 4.26, the competent authority is, for Colombia, the Ministry of Trade, Industry 
and Tourism, and, for Chile, the General Directorate of In ternational Economic Affairs.  Article 4.14.4 requires 
the Parties to maintain at the LAIA Secretariat a lis t of the competent public or private entities to issue 
certificate of origin, as well as the re gistry with the autographed or electro nic signatures of accredited officials. 
29 The Parties have committed to implementing an electronic certificate of origin no later than 
two years after the entry into force of  the Agreement. WT/REG272/1 
Page 28  
 
  75. Within 90 days from the conclusion of origin verification, the customs authority of the 
importing Party shall issue a determination on whet her the good is eligible for preferential treatment 
and shall notify the importer and the competent aut hority of the exporting Party.  If no determination 
has been issued within the established time period,  the exporting Party's competent authority shall 
have recourse to the dispute settlement  mechanism (Article 4.20.17 and 18). 
76. Each Party shall grant to exporters and producers of the other Party the same right of review 
and appeal with respect to the determination of origin granted to its own importers, including access 
to an administrative review that is independent of  the official or office that issued the origin 
determination and to a judicial review, in accord ance with the Party's domestic law (Article 4.25). 
77. Article 4.24 provides for regular consulta tions aimed at guaranteeing the effective 
administration of the Chapter's provisions.  Where a Party considers that one or more provisions of 
the Chapter need to be modified, it shall submit a proposal to the other Party.  If the proposed 
modification concerns rules of origin, such as m odification of the production process, amendment to 
the HS, or any other issue related to determination of origin, it shall be dealt with by the Committee 
on Origin.  The Committee on Origin shall convene w ithin 60 days from receipt of communication, or 
any other date as agreed, and shall submit a report to the Free Trade Commission with its conclusions 
and recommendations.  The Commission may adopt any action it considers appropriate, in conformity 
with its functions under Article 15.1.3. 
(f) Other regulations 
(i) Trade facilitation 
78. Chapter 5 on trade facilitation requires the Parti es to publish their customs laws, regulations, 
and administrative procedures on the Internet or a comparable computer based telecommunications 
network, and to establish or maintain a contact point  to deal with inquires from interested persons 
(Article 5.1);  to release goods, whenever possible, within 48 hours from their arrival, and inform 
interested persons of any refusal to release a good (Ar ticle 5.2);  to adopt ri sk management techniques 
to focus inspections on high-risk goods and facilitate  clearance of low-risk goods (Article 5.3);  to 
expedite procedures through recourse to informati on technology (Article 5.4);  and to provide 
importers, exporters, or their representatives with el ectronic forms for import or export (Article 5.5). 
79. Under Article 5.6, the Parties shall cooperate to implement their respective legislation and 
regulations with respect to: 
(a) The Agreement's provisions on import and e xport of goods, including those related to 
trade in goods, liberalization programm e, rules of origin, and Chapter 5; 
(b) implementation and operation of the Customs Valuation Agreement; 
(c) restrictions or prohibitions on imports or exports;  and 
(d) any other customs matters as the Parties may agree. 
80. Where a Party has a reasonable suspicion of unlawf ul activity related to its laws or regulations 
governing imports, it may request in writing that the other Party provides specific confidential 
information normally collected in association with the import of goods.
30  The other Party shall 
                                                      
30 "Reasonable suspicion of unlawful activity" means a suspicion based on relevant factual information 
obtained from public or private sources, including:  (a) historical evidence that a specific importer, exporter, 
manufacturer, producer, or other person involved in the movement of goods from the territory of one Party to  WT/REG272/1 
 Page 29 
 
 
  provide any information that it has collected that is material to the request (Article 5.6.6 and 7).  The 
Parties agreed to conclude a Mutual Assistan ce Agreement between their respective customs 
authorities within three months form the entry into force of the Agreement (Article 5.6.12).31  
Article 5.7 requires the Parties to respect the confidentiality of information. 
81. With respect to determinations on customs matters , each Party shall ensure that importers in 
its territory have access to:  (a) administrative review independent of the official or office that issued 
the determination;  and (b) judicial review of administrative actions (Article 5.9).  Article 5.10 
provides for the adoption or maintenance of civil, ad ministrative, or penal sanctions for violations of 
its customs laws and regulations, including those governing tariff classification, customs valuation, 
rules of origin, and the entitlement to pref erential tariff treatment under the Agreement. 
82. The importing Party, through its customs authority or competent governmental authority, 
shall issue, upon written request by an importer, ex porter, or producer, written advance rulings prior 
to the import of a good into its territory, concerning:  tariff classification;  the application of customs 
valuation criteria for a particular case, in accordance with the application of the provisions set forth in 
the Customs Valuation Agreement32;  duty drawback;  whether a good qualifies as originating under 
Chapter 4;  and any other issues as the Parties may ag ree.  Advance rulings shall be in force from their 
date of issuance, or such other date specified by the ruling, and may be modified or revoked after their 
notification.  If a requester provides false informati on or omits relevant circumstances with respect to 
an advance ruling, or does not act in accordance with the ruling's terms and conditions, the importing 
Party may apply appropriate measures, including civil,  criminal, and administrative actions, penalties, 
or other sanctions (Article 5.11). 
83. Article 5.12 establishes the Committee on Trade Facilitation, comprising two representatives 
of each Party, which shall convene upon request  of the Commission or any of the Parties.33 
8. Sector-specific provisions on trade in goods 
(a) Agriculture 
84. As a member of the Andean Community, Colomb ia participates in the Andean Price Band 
System (SAFP), which has been implemented since 1995.34  In 2010, Colombia subjected 163 tariff 
lines to the SAFP, namely:  pork meat;  poultry;  milk, cheese, and other dairy products;  cereals;  
oilseeds;  flour and meal of oilseeds;  animal and vegetable fats and oils;  prepared foodstuff based on 
meat;  sugar and sugar products;  pasta;  residues from food industries and animal feed;  glues and 
starches;  and industrial acids.35 
                                                                                                                                                                     
the territory of the other Party has not complied with a Party's laws or regulations governing importations and 
exportations;  (b) historical evidence that some or all of the persons involved in the movement from the territory 
of one Party to the territory of the other Party of goods within a specific product sector have not complied with a Party's laws or regulations governing importations and ex portations;  or (c) other information that the Parties 
agree is sufficient in the context of a particular request (Article 5.6.7). 
31 The Parties indicated that, as at August  2010, no Agreement had been concluded. 
32 Such obligation shall enter into effect three y ears after the entry into force of the Agreement 
(Article 5.13). 
33 Colombia indicated that the Trade Facilitation Committee was instructed to begin its work at the first 
meeting of the Free Trade Commission on 2 July 2009. 
34 The SAFP was established by Decision No. 371 of 1994 of the Commission of the 
Cartagena Agreement.  http://www.comunidadandina.org/normativa/dec/D371.htm . 
35 The specific list of tariff lines (at HS 10-digit level)  subject to the SAFP is provided in Annex II to 
this presentation. WT/REG272/1 
Page 30  
 
  85. The purpose of the SAFP is to stabilize the import costs of agricultural products subject to 
international price instability by adjusting their tariffs.  The tari ffs are based on the position of the 
observed price of each product in an international re ference market with respect to a "band" defined 
by "floor" and "ceiling" prices set on the basis of historical values.
36  When the reference price on the 
international market is below the floor price, Co lombia applies the common external tariff plus a 
surcharge on imports of such products.  Likewise , when the reference price on the international 
market is above the ceiling price, the common external  tariff is applied with a discount.  Lastly, if the 
reference price is the same as or between the ceiling and floor prices, the common external tariff applies. 
86. Every fortnight, the General Secretariat of the Andean Community defines 13 reference 
prices, one for each "marker" product, namely:  pig meat, chicken cuts, whole milk, wheat, barley, 
yellow maize, white maize, rice, soya beans, crude soya oil, crude palm oil, raw sugar, and white 
sugar.  The floor prices of the band are the averag e prices observed in the different reference markets 
over the previous 60 months, adjusted by a percenta ge of the standard variation during the period.  
The ceiling prices are obtained by adding one standard  variation to the floor price.  The floor and 
ceiling prices remain in force for one year.  The formulas for calculating tariff duties and all 
operational aspects are defined in Chapters V a nd VI of Andean Community Decision No. 371.  
Decision No. 430 of 1998 of the Commission of th e Andean Community provides that tariff rates 
resulting from application of the SAFP may not exceed the rates bound in the WTO.
37 
IV. TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
87. Cross-border trade in services is governed by Ch apter 10, whereas investment is addressed in 
Chapter 9.  Chapter 11 regulates the temporary entry of business persons.  According to Article 10.1, 
Chapter 10 applies to measures adopted or maintained  by governments and authorities of a Party - at 
either national or local level - and by delegated non-governmental bodies, affecting cross-border trade 
in services by services suppliers of the other Party.38  "Services supplier" is defined as a person of a 
Party that seeks to supply or supplies a service (Artic le 10.12);  however, with respect to Articles 10.2 
(National Treatment), 10.3 (Most- Favoured-Nation Treatment), and 10. 5 (Market Access), it has the 
same meaning as "services and service suppliers " under Articles XVII(1), II(1), and XVI of the 
GATS. 
88. Chapter 10 covers the supply of a service under GATS modes 1 (cross-border trade), 
2 (consumption abroad), and 4 (temporary movement of natural persons), but excludes the supply of a 
service in a Party's territory by an investor or a c overed investment of the other Party (Article 10.12).  
However, mode 3 is partially carved-back in si nce the provisions on market access (Article 10.5), 
transparency (Article 10.7), and domestic regulatio n (Article 10.8) apply to measures of a Party 
affecting the supply of a service in its territory by an investor or a covered investment of the other 
Party (Article 10.1.3).39  Chapter 10 does not apply to:  (a) financial services40;  (b) air services, 
                                                      
36 The reference markets are defined in Annex 1 to Andean Community Decision No. 371. 
37 WTO (2007), Trade Policy Review of Colombia. 
38 Such measures include:  (i) production, distribution, marketing, sale and delivery of a service; 
(ii) purchase or use of, or  payment for, a service; (iii) access to and use of distribution, transport, or 
telecommunications networks and services in connection w ith the supply of a service;  (iv) presence in its 
territory of a service supplier of the other Party; and (v) provision of a bond or other form of financial security 
as a condition for the supply of a service (Article 10.1.1). 
39 Footnote 1 to Article 10.1.3 clarifies that no prov ision of Chapter 10 is subject to the investor-State 
dispute settlement under Section B of Chapter 9 (Investment).  WT/REG272/1 
 Page 31 
 
 
  including domestic and international air transpor tation services, whether scheduled or non-scheduled, 
and related services in support of air services other than aircraft repair and maintenance services, 
specialty air services, and computer reservation system services; (c) government procurement of services;  (d) subsidies or grants provided by  a Party or public enterprises, including 
government-supported loans, guarantee and insurances
41;  or (e) services supplied in the exercise of 
governmental authority (Article 10.1.4).42  Chapter 10 does not impose any obligation on a Party with 
respect to a national of the other Party seeking access to its employment market or employed on a permanent basis in its territory, and does not confer any right on that national with respect to that 
access or employment (Article 10.1.5). 
89. Chapter 9 deals with investment provisions in  Section A and an investor State dispute 
settlement mechanism in Section B. It applies to measures adopted or maintained by a Party with 
respect to the other Party's investors and c overed investments.  Provisions on performance 
requirements (Article 9.6) and protection of the environment (Article 9.13) are extended to all 
investments in a Party's territory (Article 9.1).  M easures regarding investors or covered investment of 
a Party in financial institutions of the other Party ar e not covered by the Chapter (Article 9.1.4).  In 
Article 9.28, "investment" is defined as every ki nd of asset, owned or cont rolled, directly or 
indirectly, by an investor that includes charact eristics such as the commitment of capital or other 
resources, the expectation of gain or profit, or the assumption of risk.
43  "Investor of a Party" is 
defined as a Party or its State enterprise, a national or an enterprise of a Party that has made, is in the 
process of making, or is seeking to make an investment in the territory of the other Party.44  Where a 
person has a dual citizenship it shall be deemed to be  exclusively a citizen of the State of his or her 
dominant and effective citizenship. 
90. Where a Party requires a service provider of the other Party to post a bond or other form of 
financial security as a condition for providing a servi ce in its territory, the provisions of Chapter 9 
shall not be applicable to the supply of that cro ss-border service.  However, Chapter 9 shall apply to 
measures adopted or maintained by a Party with resp ect to the bond or financial security that represent 
a covered investment (Article 9.1.3).  Neither Part y is required to privatize any investment of its 
property or under its control or to prohibit the cr eation of a monopoly;  however, when a Party adopts 
or maintain a measure aimed at privatizing such i nvestment or at creating a monopoly, that measure 
shall be subject to the Chapter' s obligations (Article 9.1.5). 
                                                                                                                                                                     
40 Article 10.12 defines "financial services" as an y service of a financial nature, including:  all 
insurance and related services;  all banking and other financial services (with the exception of insurance 
services);  and all auxiliary services  to services of a financial nature. 
41 Annex 10.1.4(d) specifies that where a Party establishes or maintains a fund to promote the 
development of a service in its territory, the disbursement of such fund shall be subject to the provisions of 
Article 10.1.4(d) even if the administration of the fund is under the entire or partial responsibility of a private 
entity. 
42 "Service supplied in the exercise of government al authority" means any service which is supplied 
neither on a commercial basis nor in competition with  one or more service suppliers (Article 10.1.6). 
43 The definition of investment includes:  an enterprise; shares, stock, and other forms of equity 
participation in an enterprise; bonds, debentures, and loans and other debt of an enterprise, with the exclusion of 
loans and other debt of or for a State enterprise; futures, options, and other derivatives;  turnkey, construction, 
management, production, concession, revenue-sharing, and other similar contracts; intellectual property rights; 
licences, authorizations, permits, and similar rights conferred pursuant to applicable domestic law; and other 
tangible or intangible, movable or immovable property, and related property rights, such as leases, mortgages, 
liens, and pledges.  The definition of investment does not include:  an action in a judicial or administrative process;  a loan issued by a Party to the other;  and de bt of the State or its public institutions (Article 9.28). 
44 Footnote 19 to Article 9.28 specifies that an investor "is seeking to make an investment" when it has 
put in place the essential actions that are necessary to rea lize such investment, such as the allocation of resources 
to constitute the capital of an enterprise, the achievement of licensing or permit required to make an investment, 
among others. WT/REG272/1 
Page 32  
 
  91. In the event of any inconsistency between Chap ter 9 and any other Chapter of the Agreement, 
the latter shall prevail to the extent of the inconsistenc y (Article 9.1.2). 
92. Article 9.14 requires the Parties to consult annuall y, or any other time as agreed, to review the 
implementation of Chapter 9 and consider any other issue related to investment of mutual interest, 
such as the development of more transparent pr ocedures for the adoption of future non-conforming 
measures, in accordance with Article 9.8.1(c).  Th ey shall also cooperate in the settlement of 
investor-State disputes. 
B. D
ENIAL OF BENEFITS  
93. A Party may suspend, after consultations, the benefits under Chapter 10 to services suppliers 
of a Party when the service is being supplied by an  enterprise owned or controlled by persons of a 
non-party, or of the denying Party, and the ente rprise has no substantive business operations in the 
territory of that Party (Article 10.11). 
94. Similarly, benefits of the investment Chapter may be denied, following consultations, to an 
investor of the other Party that is an enterprise of such Party and to its investments, where an investor 
of a non-Party or of a denying Party owns or contro ls the enterprise, and the enterprise does not have 
substantive business operations in the ot her Party's territory (Article 9.12). 
C. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
1. Market access 
95. Neither Party shall adopt or maintain measure s that:  (a) impose limitations on the number of 
services suppliers, whether in the form of numeri cal quotas, monopolies, exclusive service suppliers 
or require an economic needs test;  limit the total value of service transactions or assets;  the total 
number of service operations or the total quantit y of service output;  the total number of natural 
persons that may be employed in a particular service sector or that a service supplier may employ;  or (b) restrict or require specific types of legal entiti es or joint ventures through which a service supplier 
may supply a service (Article 10.5). 
96. Market access commitments under the Agreement ar e subject to reservations as indicated by 
each Party in its respective schedules to Annex II. 
2. National and MFN treatment 
97. Articles 10.2 and 10.3 require each Party to accord  to services suppliers of the other Party 
treatment no less favourable than that accorded, in like circumstances, to its own services suppliers 
and to services suppliers of a non-Party. 
98. National and MFN treatment is also granted to  investors and covered investments of the 
Parties, with respect to the establishment, acquis ition, expansion, administration, conduct, operation 
and sale or any other form of disposition of invest ments in their territories (Articles 9.2 and 9.3). 
99. Annex 9.3 specifies that MFN treatment (Article 9. 3) is not applicable to procedural issues, 
including the mechanism for the settlement of disputes under Section B. Moreover, the national 
treatment obligation (Article 9.2) does not prevent the Parties from adopting or maintaining a measure 
that prescribes special formalities in connection with  covered investments - for instance, residency 
requirement for the investor or the compliance of covered investments with domestic laws and 
regulations - provided that such formalities do not ma terially impair the protection afforded by a Party 
to the other Party's investors and covered invest ments (Article 9.11).  Notwithstanding Articles 9.2  WT/REG272/1 
 Page 33 
 
 
  and 9.3, a Party may require the other Party's invest or or covered investment to provide information 
concerning that investment solely for informati on or statistical purposes.  The disclosure of any 
confidential business information is prohibited (Article 9.11.2). 
100. Neither Party may require that an enterprise of a Party that is a covered investment appoints 
to senior management positions individuals of any particular nationality.  However, a Party may 
require that a majority of the board of director s, or any committee thereof, be of a particular 
nationality or be resident in the territory of th e Party, provided that such a requirement does not 
materially impair the ability of the investor to exercise control over its investment (Article 9.7). 
3. Commercial presence 
101. Neither Party shall require as a condition for the cross-border supply of a service that a 
service supplier of the other Party establishes or maintains a representative office or any form of 
enterprise or to be resident in its territory (Article 10.4). 
4. Movement of natural persons 
102. Chapter 11 establishes conditions for the tempor ary entry of business persons in the Parties' 
respective territories.  It excl udes measures of a Party regardi ng the acquisition of nationality, 
citizenship, permanent residency or employment (A rticle 11.2).  A "business person" is defined by 
Article 11.9 as a national of a Party who is engaged in trade in goods, the supply of services, or the 
conduct of investment activities in the other Party.   Categories covered by Annex 11.3 are:  business 
visitors, traders and investors, intra-corpor ate transferees, professionals and technicians. 
103. Measures related to temporary entry shall be applied expeditiously so as to avoid unduly 
impairing or delaying trade in goods, services, or  investment activities.  However, the Parties may 
apply immigration measures necessary to protect the integrity of, and to ensure the orderly movement 
of, natural persons across the borders  (Article 11.2).  Authorization fo r temporary entry shall be given 
to business persons who otherwise qualified for en try under applicable measures relating to public 
health and safety and national security, in accordan ce with the Chapter's provisions (Article 11.3). 
104. Article 11.4 requires the Parties to provide each other with information related to the 
Chapter's measures and, no later than one year after the entry into force of the Agreement, to publish 
and make available to interested persons, in its te rritory and in the other Party's territory, a document 
explaining all the requirements for temporary entry.45  In addition to the transparency obligations of 
Chapter 14, the Parties shall maintain or estab lish adequate mechanisms to address enquiries from 
interested persons.  A Party shall inform the app licant of its decision no later than 35 days from the 
request for temporary entry, considered complete  in accordance with domestic laws and regulations 
(Article 11.8). 
105. A Party may not initiate a dispute settlement pr ocedure in accordance with Article 16.6.3(b) 
(Intervention of the Commission) when temporary entry has been refused or with  respect to any other 
matter covered by Article 11.2 (General Obligations ), unless the matter involves a pattern of practice 
and the business person has exhausted all the administrative remedies available.46  Article 11.7 
specifies that, apart from Chapter 11, provisions of Chapters 1 (Initial Provisions), 2 (General 
Definitions), 15 (Administration), 16 (Dispute Settlement), and 22 (Final Provisions), and 
                                                      
45 Colombia has published this information on the "Citizens' Services" website 
(http://www.cancilleria.gov.co/);  Chile is in  the process of fulfilling this commitment. 
46 Administrative remedies are deemed to be exhausted if a final determination on the matter has not 
been issued by the competent authority within six months of the institution of an administrative proceeding, and 
the failure to issue a determination is not attributable to  a delay caused by the business person (Article 11.6.2). WT/REG272/1 
Page 34  
 
  Articles 14.1 (Contact Points), 14.2 (Publication), 14 .3 (Notification and Prov ision of Information), 
and 14.4 (Administrative Proceedings), any othe r provision of the Agreement does not impose 
obligations on the Parties with resp ect to their immigration measures. 
106. A Committee for Temporary Entry for Business Pe rsons is established under Article 11.5.  It 
shall comprise representatives of each Party, in cluding immigration officers and other competent 
authorities.  It is to meet at least once a year, inter alia , to establish procedures for the exchange of 
information, agree on measures to facilitate temp orary entry, supervise the implementation and 
administration of the Chapter, and develop mutually  agreed criteria, definitions, and recommendations 
for the Chapter's implementation. 
107. The conditions for temporary entry for each cat egory of business persons are specified in 
Annex 11.3: 
(a) Business visitors must prove nationality of a Party;  demonstrate their engagement in 
a business activity and describe the purpose of entry;  demonstrate the international 
scope of the proposed business activity and prove that they are not seeking entry to the local labour market. 
(b) Traders and investors must prove to carry out a substantial amount of trade in goods 
or services between the territories of the Parties, or to establish, develop or administer an investment to which the business person or the business person's enterprise has 
committed, or is the process of committing, a substantial amount of capital, in a capacity that is supervisory, execu tive, or involving essential skills. 
(c) Intra-company transferees must seek to render services to the enterprise or a 
subsidiary or an affiliate thereof, as a ma nager, an executive, specialist and may be 
required to have been continuously employed by the enterprise for one year within the three year period immediately preceding the date of the application for admission. 
(d) Professionals and technicians must prove na tionality of a Party, demonstrate their 
engagement in a business activity and describe the purpose of entry, and demonstrate 
minimum academic or other qualifications.
47 
108. Neither Party may, as a condition for temporar y entry, require prior approval procedures, 
petitions, labour certification tests, or other proce dures of similar effect, nor impose or maintain any 
numerical restriction relating to temporary entry. 
109. Annex 11.3.1 sets further requirements for tempor ary entry.  For Colombia, business visitors 
are asked to contribute to the development of econo mic, scientific, cultural, and educational activities 
that are useful or beneficial to the country.  Covered business persons holding a special temporary 
visa for specific categories ("independent activities"  or "unplanned activities") may renew the visa in 
the same category and for the same period before th e expiration date, provided that the conditions for 
its granting are maintained, but are prevented from re questing permanent residency.  Pursuant to the 
reciprocity principle, Colombia shall permit a natio nal from Chile to change their immigration status 
from tourist and temporary visitor to one of the special categories mentioned above without leaving 
the country.  Business visitors entering Chile must also carry out useful and advantageous activities 
for the country.  Business visitors holding temporary residence visas may renew such visas for consecutive periods, provided that the conditions fo r granting the visa are maintained, but may not 
                                                     
 
47 Article 11.9 specifies that, for the purpose of Chapter 11, professionals and technicians must possess 
a post-secondary level of qualification (at least four and two years of study, re spectively) to practice a 
specialized profession.  WT/REG272/1 
 Page 35 
 
 
  request permanent residency in Chile, unless th ey comply with domestic immigration law.48  Business 
visitors entering either Colombia or Chile ma y also obtain an identity card for foreigners. 
110. Chile provided data on temporary entry of Co lombian business persons into Chile for the 
period 2006-2009 (Table IV.1).  Over this period,  personnel subject to contract, professionals and 
technicians, and temporary personnel have obtai ned the highest number of temporary residence 
permits.  Colombia does not have any sta tistics on the movement of natural persons. 
Table IV.1 
Data on the movement of natural persons from Colombia into Chile 
2006 2007 2008 2009 
Category 
Titular Dependent Titular Dependent Titular Dependent Titular Dependent
Student 143 13 144 11 98 7 138 11 
NC 31 8     0 1 
Subject to contract 1,027 150 1,179 174 1,187 148 1,374 235 
Subject to contract with 1 0       
Temp, Art. 50.F 11 3 12 3 19 1 38 6 
Temp, Investor 16 10 28 6 13 3 16 8 
Temp, not Profess./Technician 49 14 76 16 101 11 185 30 
Temp, Professional practice 1 0 4 0 5 0 3 0 
Temp, Profess./Technician 329 43 324 72 291 34 349 48 
Temp, Externally paid 18 4 15 3 9 6 4 1 
Temp, Bondholder 1 2       
Temporary 249 51 954 81 1563 241 565 124 
Note: "NC":  not known;  "Subject to contract with":  work visa sponsored by a company resident in Chile. 
Source : Data provided by Chile.  
5. Performance requirements 
111. Article 9.6 prohibits the Parties from imposing or enforcing any performance requirements or 
commitment or undertaking in connection with invest ment activities of an investment of an investor 
of a Party or of a non-Party in its territory.49  Neither Party may condition the receipt or continued 
receipt of an advantage, in connection with inv estment activities, on compliance with the performance 
requirements specified in paragraph 250, except for a requirement to locate production, provide a 
                                                      
48 Law Decree 1094 and Supreme Decree 597 of the Ministry of Home Affairs, Official Journal of 
24 November 1984. 
49 Performance requirements listed in Article 9.6 are:  (a) to export a given level or percentage of goods 
or services;  (b) to achieve a given level or percentage of domestic content;  (c) to purchase, use, or accord a 
preference to goods produced in its territory, or to purchas e goods from persons in its territory;  (d) to relate in 
any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment;  (e) to restrict  sales of goods or services in its territory that such 
investment produces or provides by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings;  (f) to transfer a particular technology, production process, or other proprietary knowledge to a person in its territory;  or (g) to supply  exclusively from the territory  of the Party the goods it 
produces or the services that it provides to a sp ecific regional market or  to the world market. 
50 These are:  (a) to achieve a given level or percentage of domestic content;  (b) to purchase, use, or 
accord a preference to g oods produced in its territory, or to purchase goods from persons in its territory;  (c) to 
relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign 
exchange inflows associated with such investment;  or (d) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports 
or foreign exchange earnings. WT/REG272/1 
Page 36  
 
  service, train or employ workers, construct or expa nd particular facilities, or carry out research and 
development, in their respective territories. 
112. Exceptions to the prohibition on performance require ments concern:  (a) a Party's right to use 
intellectual property rights without the authorizatio n of the rights holder, and measures requiring the 
disclosure of proprietary information in accordance with the TRIPS Agreement;  (b) requirements 
imposed by a court, administrative tribunal, or competition authority as a remedy to an anti 
competitive practice under a Party's domestic laws;  (c) requirements necessar y to secure compliance 
with laws and regulations that are consistent with the Agreement's provisions, to protect human, 
animal, or plant life or health, or for the conser vation of living or non-liv ing exhaustible natural 
resources;  (d) requirements for goods or services to qualify for export promotion and foreign aid 
programmes;  (e) government procurement measures;  and (f) requirements imposed by an importing 
Party relating to the content of goods necessary to  qualify for preferential tariffs or preferential 
quotas.  For greater certainty, Article 9.6 does not apply to any requirements other than those set out in its paragraphs 1 and 2 and does not affect an y commitment, undertaking, or requirement between 
private parties that has not been imposed by a Party (Article 9.6.4 and 5). 
6. Other provisions on investment 
113. Further provisions on investment include:  non-discriminatory treatment in case of armed 
conflict or civil strife (Article 9.5)
51;  expropriation or nationalizati on, and the payment of prompt, 
adequate, and effective compensation (Article 9.10 and Annex C);  and the adoption of measures to 
ensure that investment activities in the territory  of the Parties conform with their respective 
environmental legislations (Article 9.13). 
114. Covered investments of a Party shall be gr anted a minimum standard of treatment in 
accordance with customary international law (Article 9.4) This includes fair and equitable treatment, 
including the obligation not to deny justice in  criminal, civil or administrative adjudicatory 
proceedings, and full protection and security.  Breac h of any other provision of the Agreement or of 
an international agreement does not constitute a breach of Article 9.4. 
115. With regard to the provisions on transfers rela ting to covered investment, Article 9.9 requires 
the Parties to permit all transfers relating to a cove red investment freely and without delay, and in an 
usable currency at the market rate of exchange preva iling at the time of transfer into and out of their 
respective territories.52  As from the entry into force of the Ag reement, returns in kind relating to a 
covered investment are to be made as authorized or specified in a written agreement (Article 9.9.2). 
116. A Party may prevent or restrict a transfer in  case of:  (a) bankruptcy, insolvency, or for 
protecting the rights of creditors;  (b) issuing, trad ing, or dealing in securities, futures, options, or 
derivatives;  (c) penal offences;  (d) financial repor ting or record keeping of transfers when necessary 
to assist law enforcement or financial regulator y authorities;  and (e) compliance with orders, 
judgments, or findings in judicial, administrative, or arbitral proceedings (Article 9.9.4 and 5). 
                                                      
51 Article 9.5 does not apply to existing measures on subsidies or grants that would be inconsistent with 
Article 9.2 (National Treatment), with the exception of Article 9.8.4(b) (Non-Conforming Measures). 
52 Transfers include:  contributions to capital;  pr ofits, dividends, interest, capital gains, royalty 
payments, management fees, technical assistance and other fees ;  proceeds from the sale of all or any part of the 
covered investment or from the partial or complete liquidation of the covered investment;  payments made under 
a contract entered into by the investor, or the covered investment, including payments made pursuant to a loan 
agreement;  payments made pursuant to Articles 9.5.1 and 2 and Article 9.10;  and payments arising by 
investor-State disputes (Article 9.91).  WT/REG272/1 
 Page 37 
 
 
  117. Annex 9-B states that with respect to provisions of Article 9.9, each Party's central bank 
reserves the right to adopt or maintain any me asures, in accordance with domestic legislation53, aimed 
at ensuring the stability of the currency and th e normal functioning of internal and external 
expenditures.  Such measures may result in the adop tion of requirements that re strict or limit current 
payments and capital movements from or to a Party, or that bind a deposit, investment, or credit to a 
reserve requirement.  Measures covered by A nnex 9B are subject to national treatment. 
D. LIBERALIZATION COMMITMENTS  
118. The Agreement follows a "negative-list appro ach" for services and investment, with all 
covered sectors and subsectors assumed to be liberalized, unless as specified in non-conforming measures in Annexes I and II.  Annex I lists a ll existing non-conforming measures adopted by a 
Party's national government or authorities or lo cal government, and their continuation, prompt 
renewal, or amendment - provided that the leve l of non-conformity is not increased after the 
amendment - that do not conform with obligations  on national treatment (Articles 10.2 and 9.2), 
MFN treatment (Articles 10.3 and 9.3), local presence (Article 10.4), market access (Article 10.5), prohibition of performance requirements (Article 9. 6), and senior management and board of directors 
requirements (Article 9.7).  Reservations in Annex II apply to any future measures that a Party may 
adopt or maintain with respect to relevant sector s, subsectors and activities (Articles 9.8 and 10.6). 
119. Neither Party may, under any measure adopted afte r the entry into force of the Agreement and 
covered in Annex II, require an investor of the ot her Party, by reason of its nationality, to sell or 
otherwise dispose of an investment existing at the time the measure becomes effective (Article 9.8.3) 
120. Furthermore, Articles 9.2 (na tional treatment), 9.3 (MFN treatment), and 9.7 (senior 
management and board of directors) do not apply to  government procurement or subsidies or grants 
provided by a Party, including government supporte d loans, guarantees and insurances (Article 9.8.4). 
2. Colombia 
121. Table IV.2 lists Colombia's ex isting non-conforming measures. 
Table IV.2 
Reservations for existing measures  listed by Colombia in Annex I 
Sector Obligations Mode Description 
All sectors LP CBTS Establishment as a branch to obtain a licence. 
All sectors NT/PR CBTS/I Employers with more than te n workers shall employ nationals in a proportion of 
no less than 90% of its ordinary workers and of no less than 80% of its skilled, 
specialized or managerial personnel or persons in a position of trust. 
All sectors NT I Foreign investments permitted only through a foreign capital investment fund. 
All sectors NT I Colombia's equity interests in an enterprise shall be as a priority transferred or 
sold to specific categories of nationals listed in Annex I. 
All sectors LP CBTS Only natural or juridical pe rsons with their main o ffice in the free port of 
San Andrés, Providencia, and Santa Catalina may supply services in such regions 
(except for services provided under GATS modes 1 and 2). 
Public accountants NT/LP CBTS Registration/reside ncy requirements.  Qualification requirement. 
Research and 
Development Services NT CBTS Engagement of nationals in scie ntific research on biological diversity. 
Fishing and services 
incidental to fishing NT/MFN 
MA I/CBTS Nationality requirement for artisanal fishing.  Association with a Colombian 
enterprise owning a permit for fishing a nd related activities.  Reservations not 
applicable in the event of bilateral agreement. 
                                                      
53 In the case of Colombia, the applicable law is Law No. 31 of 1992, and any other laws;  and for 
Chile, the Law No. 18.840, Organic Constitutional of the Central Bank of Chile, or any other laws. WT/REG272/1 
Page 38  
 
  Sector Obligations Mode Description 
Services Directly 
Incidental to the 
Exploration and Exploitation of Minerals and Hydrocarbons LP CBTS Establishment as a branch , affiliate company, or subsid iary (except for services of 
less than one year). 
Investigation and security services NT/LP/MA I/CBTS Nationality requirement.  Lim itations on juridical forms (limited liability 
corporations or cooperatives).  Enterp rises established before 11 February 1994 
may not increase foreign participation. 
Journalism SMBD I Nationality requirement for any di rector or general manager of a newspaper that 
focuses on Colombian politics. 
Travel agents and Tourism NT/LP CBTS Domicile requirement (except for tourist guides and services supplied under 
GATS modes 1 and 2). 
Notary and Registrar 
Public Services NT/MA CBTS Nationality requirement.  Economic needs test for entry of new notaries. 
Domiciliary Public 
Services NT/MA/LP I/CBTS Establishment as a share company domiciled in Chile. 
Electrical Power MA CBTS Only by enterprises or ganized under domestic law before 12 July 1994. 
Customs Services LP CBTS Residence requirement. 
Postal and "mensajería 
especializada"  Services LP CBTS Only by juridical persons organized under domestic law. 
Telecommunication 
Services NT/MA/LP CBTS Only enterprises organized under domestic law may obtain licences. licences for 
the routing of long distance internati onal traffic shall be granted only to 
facilities-based suppliers, and base d on an economic needs test, until 
31 July 2007. 
Cinematography NT/PR I/CBTS The exhibition and distribution of  foreign movies is subject to a fee, set at 8.5% of 
the monthly net income derived from  such exhibition and distribution. 
Radio-broadcasting 
Services NT/LP/MA CBTS Licences may be granted to natura l or juridical persons legally established in 
Colombia and subject to an economic needs test.  Nationality requirement for 
directors. 
Free-to-air Television NT/LP/PR 
MA I/CBTS Nationality requirement to obtain licen ces, which are based on an economic needs 
test.  Establishment as a corporation.   Up to 40% foreign equity limit. 
National television :  at least 50% of broadcast programmes on each channel shall 
be nationally produced (70%  between 19:00 and 22:30). 
Regional and local television :  supplied by State-owned entities.  At least 50% of 
broadcast programmes on each channel shall be domestically produced. 
Subscription Television MA/LP/PR I/CBTS Only by juridical persons  organized under domestic law.   Domestic content quota.  
Technical capacity requirement for tr ansmission of regional and municipal 
channels. 
Subscription television not including satellite :  at least 50% of broadcast 
programmes shall be domestically pr oduced (70% between 19:00 and 22:30). 
No restrictions on the number of subscription television licences at the zonal, 
municipal, and district level from 31 October 2011. 
Community Television LP/MA CBTS Only by enterprises orga nized as foundations, cooperatives, associations, or 
corporations under Civil Law. 
Waste-related Services NT I Foreign investment is not permitted in activities related to processing, disposition, 
and disposal of toxic, hazardous or radi oactive waste not produced in Colombia. 
Transport Services LP CBTS Public tr ansportation services are reserved fo r enterprises legally established and 
domiciled in Colombia.  Foreign enterprise s with an agent or representative with 
domicile and legally responsible for their activities in Colombia may supply 
multimodal transportation of cargo. 
Maritime and fluvial Transportation NT/LP CBTS Cabotage is reserved for enterprises established under domestic law and using 
Colombian flag vessels.  Foreign-flagge d vessels must have a representative 
legally responsible for their activities and resident in Colombia.  Nationality 
requirement for pilotage.  Nationality re quirement for captain, officials and at 
least 80% of the rest of the crew for ve ssels (both Colombian and foreign-flagged) 
operating for more than six months. 
Port Services NT/LP/MA CBTS Establishm ent as a corporation.  Authorization may be obtained by foreign-flag 
vessels where no national vessels are available.  WT/REG272/1 
 Page 39 
 
 
  Sector Obligations Mode Description 
Specialty Air Services NT/LP/MFN CBTS On ly by national or legally established ju ridical persons.  No less than 90% of 
workers in any foreign enterprise with an agency or branch in Colombia must be 
Colombian (except in case of reciprocity). 
Note: CBTS: Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restriction ;  
MFN:  Restriction to MFN treatment;  NT:  National treat ment restriction;  PR:  Performance requirements;  
SMBD:  Restrictions affecting senior management and board of directors. 
Source : Annex I of the Agreement.  
122. Colombia's GATS schedule covers five of the 11 sectors defined in the Services Sectoral 
Classification List (MTN.GNS/W/120), namely:  bu siness services;  communications services (only 
telecoms);  construction and related engineeri ng services;  financial services;  and tourism and 
travel-related services.  No commitments have been taken in communications, other than 
telecommunications;  distribution services;  educational services;  environmental services;  health-related and social services;  recreational, cu ltural and sporting services;  and transport services. 
123. The Agreement provides for reservations in all sectors taking the form of nationality and local 
presence requirements.  In order to supply any ser vice, a juridical person established under the laws 
of, and with its principal domicile in, another country, must establish as a branch in Colombia to 
obtain a licence from the State.  Foreign investors may make portfolio investments in securities only 
through a foreign capital investment fund.  Moreover, if Colombia decides to sell all or part of its 
interest in an enterprise to a person other than a Colombian state enterprise or other Government 
entity, categories of investors listed in Annex I will have priority.
54  However, once the transfer or sale 
is completed, Colombia does not reserve the righ t to control it further.  Other reservations by 
Colombia in Annex I consist of a local presence requirement, especially for research and development services, services incidental to exploration and ex ploitation of minerals an d hydrocarbons, travel 
agents and tourism, customs services, some televisions services, and transport services.  The 
MFN obligation is waived for fishing and specia lty air services.  Market access is restricted for 
fishing, investigation and security services, notar y and registrar public services, supply of electric 
power, telecommunication services, radio-broadcasting services, some television services, and port services, through the application of authorizatio n or licensing requirements, in many cases on 
condition of an economic needs test. 
124. In comparison with its horizontal commitm ents under the GATS, Colombia has listed 
equivalent measures which impose limitations on mod es 3 and 4.  Not listed, for instance, is the 
horizontal measure requiring foreign corporations to  pay a tax on remittance of profits, since that 
measure is covered by the general exceptions of the GATS, which forms an integral part of the 
Agreement;  unappropriated lands along the coast a nd in the border regions are reserved in accordance 
with Annex II, which imposes limitations on foreig n ownership of real pr operty in border regions, 
national coasts, or island territory.  This also applies to the horizontal commitment within the 
framework of the GATS on special requirements for acquisition of real estate by foreigners in the islands of the San Andrés and Providencia archipel ago.  Under the Agreement, local presence is 
required for the supply of cross-border trade in services under GATS modes 1, 2 and 4 in the above-mentioned areas, including Santa Catalina.  As  in the GATS, the hiring of foreigners by 
companies with more than ten employees as well was the participation of foreign investments in 
services related to the processing, disposition or disposal of toxic, hazardous or radioactive waste not produced in Colombia is restricted.  With resp ect to mode 4, Colombia 's GATS commitments are 
unbound, except for measures relating to the tempor ary entry of managers, legal representatives and 
                                                     
 
54 These are:  current, pensioned, and former empl oyees (other than former employees terminated for 
just cause) of the enterprise and of other enterprises owned or controlled by the enterprise;  associations of employees and former employees of the enterprise;  employee unions;  federations and confederations of trade 
unions;  employee funds ("fondos de empleados");  pension and severance funds;  and cooperative entities. WT/REG272/1 
Page 40  
 
  technical specialists, whereas the Agreement grants temporary entry to a broader category of business 
persons (see Section IV.C.5). 
125. Colombia's sector-specific commitments unde r the Agreement have been improved with 
respect to its GATS Schedule.  In business services,  for instance, the coverage of legal services has 
been extended, since only advisory services relating to foreign and international legislation are bound 
in the GATS.  For public accounting services, limita tions on market access for mode 3, requiring at 
least 80 per cent of the partners in public comp anies be public accountants , has been removed under 
the Agreement.  However, reservations on national treatment, in the form of residency, experience, registration and qualification requirements continue to apply to public accountants. 
126. For communications services, Colombia added commitments in postal and courier services, 
and audiovisual services under the Agreement.  Ho wever, the supply of postal and "mensajería 
especializada" services is reserved for juridi cal persons established under domestic law.
55  I n  t h e  
audiovisual sector, a domestic content requirement applies to the broadcasting of programmes in free-to-air, subscription, and community television.
56  Licences for television services may be 
awarded only to nationals and juridical persons est ablished under Colombian law.  For free-to-air 
television, the number of licences depends on an econom ic needs test, and foreign equity participation 
is permitted up to 40 per cent.  For subscrip tion television, licensing is to terminate on 
31 October 2011.  Licences are also mandatory for radio-broadcasting services, and are also based on 
an economic needs test.  The projection and distribution of foreign movies in Colombian theatres is subject to the "Cinematographic Development Fee", which is set at 8.5 per cent of the monthly net 
income from such projection and distribution;  the fe e is reduced to 2.5 per cent when a foreign movie 
is projected together with a Colombian short film. 
127. The telecommunications market is open to competition from Chilean enterprises that are 
legally set up in Colombia and obtain a licence.  In this sector, Colombia has eliminated all restrictions listed in its GATS Schedule, includi ng foreign equity limits of up to 70 per cent;  
prohibition on call-back services;  economic needs t est for entry of new opera tors providing national 
and international long-distance services;  fulfilment  of technical criteria for the supply of mobile 
telephony services;  and restrictions on the numbe r of suppliers of personal telecommunications 
services and trunking services.  In addition, the Ag reement abolished licences for the routing of 
long-distance international traffic as from 31 July 2007. 
128. Colombia has no commitments in transpor tation services under the GATS.  These are 
liberalized under the Agreement except for a lo cal presence requirement in public transportation 
services and multimodal transportation of cargo, within  and from the territory of  Colombia.  The same 
reservation applies to maritime and fluvial transportation, as well as a nationality requirement for cabotage, pilotage, and composition of crews.  Market access is restricted for the provision of port services, unless the General Maritime Direction,  in exceptional circumstances, authorizes 
foreign-flagged vessels to provide such services wh ere Colombian vessels are not available.  Only 
nationals or juridical persons organized under dome stic law and domiciled in Colombia may supply 
specialty air services within the territory of Colombia  and own and maintain real and effective control 
of an airplane registered to supply specialty air servi ces.  For enterprises with an agency or branch in 
Colombia, not less than 90 per cent of the work force must be Colombian, except in case of 
reciprocity. 
                                                     
 
55 "Mensajería especializada" means postal services that are supplied independently of the official 
postal networks for national and international mail, and that require the application and adoption of special 
procedures for the receipt, collection, and personal delivery of mail and othe r postal objects transported by land 
or air within or from the territory of Colombia. 
56 In national, regional, local, and non-cable television domestic content may vary between 50 per cent 
and 70 per cent of total broadcast programmes on each channel on a daily basis, depending on the time.  WT/REG272/1 
 Page 41 
 
 
  129. Annex II contains reservations taken by Colombia for sectors, subsectors and activities for 
which it may maintain existing, or adopt new or mo re restrictive measures (see Table IV.3 below).  
Market access may be restricted in a number of sectors and subsectors listed in the Annex, which are mostly unbound under the GATS.
57  Colombia may apply MFN reservations in all sectors in order to 
accord differential treatment to countries under any in ternational agreement in force or signed prior to 
entry into force of the Agreement, and under any inte rnational agreements in force or signed after the 
entry into force of the Agreement, involving avia tion, fisheries, and maritime matters, including 
salvage.  The provision of land and fluvial transport services may also be subject to MFN reservations, pursuant to any bilateral or multil ateral international agreement signed after the 
date of entry into force of the Agreement.  With r espect to investment, national treatment is waived in 
all sectors for ownership of real property by foreig ners in border regions, na tional coasts, or insular 
territory.  The same reservation, in combination with a performance requirement, may apply to the 
audiovisual sector, handicraft industry, and other artistic works, providing that a given level of 
domestic content is achieved.  Colombia further re serves the right to adopt any measure on social 
services and to give preferential treatment to socially or economically disadvantaged minorities and 
ethnic groups. 
Table IV.3 
Reservations for future measures listed by Colombia in Annex II 
Sector Obligations Mode Description 
Certain sectors MA CBTS Any measure relating to ma rket access except for sectors and subsectors in 
Annex II. 
All sectors NT I Limitations on ownership of real estate by foreigners in  border regions, national 
coasts, or island territory. 
All sectors MFN I/CBTS Any measure giving differen tial treatment to countries under any bilateral or 
multilateral international agreement in for ce or signed prior to the date of entry 
into force of the Agreemen t, or under any bilateral or multilateral international 
agreement in force or signed after the date  of entry into force of the Agreement 
involving aviation, fisheries, and maritime matters, including salvage. 
Social services MA/NT 
MFN/LP 
PR/SMBD I/CBTS Any measure with respect to the prov ision of law enforcement and correctional 
services, and the following services to the extent they are social services 
established or maintained for a public pur pose:  social re-adaptation, income 
security or insurance, so cial security, social welfare, public training and 
education, health, and child care. 
Issues related to 
minorities and ethnic 
groups MA/NT 
MFN/LP 
PR/SMBD I/CBTS Any measure according rights or preferences to socially or economically 
disadvantaged minorities a nd ethnic groups, including communal lands held by 
ethnic groups. 
Industry and cultural activities NT/MFN I/CBTS Any measure giving preferential tr eatment to persons of other countries pursuant 
to any bilateral agreement contai ning specific commitments on cultural 
cooperation and co-production. 
Jewellery design, theatre 
arts, music, visual arts, 
audiovisuals, publishing NT/PR I/CBTS Any measure conditioning the receipt or continued receipt of government support 
for the development and production of th e mentioned sectors on the recipient 
achieving a given level or percenta ge of domestic creative content. 
Handicraft industries NT/PR I/CBTS Any m easures relating to the design, distri bution, retailing, or exhibition of 
handicrafts that are identified as Colombian handicrafts. 
                                                      
57 These are:  investigation and security servi ces;  research and development services;  the 
establishment of exclusive areas for services incidental to energy distribution in order to ensure universal 
service;  distribution, wholesale and retail services in sectors in which the Government establishes a monopoly, 
pursuant to Article 336 of the "Constitución Política" de Colombia, with revenue to be dedicated for public or social services (as of the date of signing of the Agr eement, Colombia has in place monopolies only with respect 
to liquor and gambling);  primary and secondary education services, and, with respect to higher education, 
requirements relating to the specific type of legal entity that may supply such services;  environmental services established or maintained for a public purpose;  health related and social services, and professional services 
related to health;  libraries, archives and museums;  sporting and other recreational services;  the number of 
licences and the total number of operat ions for road transportation passenger services;  passenger and freight rail 
transportation services;  pipeline transport;  services a uxiliary to all modes of transport, and other transport 
services. WT/REG272/1 
Page 42  
 
  Sector Obligations Mode Description 
Audiovisual/ 
Advertising NT/PR I/CBTS Cinematographic works :  right to adopt or maintain any measures whereby up to 
15% of all cinematographic work shown annually in cinemas or exhibition rooms 
in Colombia consists of Colombian cinematographic works. Cinematographic works in free television :  right to adopt or maintain any 
measures whereby up to 10% of all cinematographic work shown annually on free 
television consists of Colomb ian cinematographic works. 
Community television :  right to adopt or maintain any measures whereby up to 
56 hours of weekly broadcasting consists of national programmes. 
Free commercial multichannel television :  right to impose minimum requirements 
for broadcasting on no more than two cha nnels or 25% of all channels by the 
same provider. 
Advertising :  right to adopt or maintain any measures whereby up to 20% of total 
annual advertising orders by media comp anies established in Colombia, other 
than newspapers and subscription servi ces with headquarters outside Colombia, 
be produced and created in Colombia. 
Traditional expressions NT I/CBTS Any measure according right s or preferences to local communities with respect to 
the support and development of expressi ons related to immaterial cultural 
heritage, as declared under Resolution No. 0168 of 2005. 
Audio and/or video 
interactive services NT/PR I/CBTS Measures ensuring access to Colomb ian programmes through interactive services.
Professional servicesª NT/LP/MA/M
FN CBTS Any measure allowing a professional to practice only to the extent that the 
government of the province or territory in which that professional conducts his or 
her primary practice affords treatment cons istent with the obligations referenced 
in the reservation to a Colombian national who otherwise satisfies the relevant 
authorization, licensing, or certification re quirements to practice that profession.  
Professionals practicing in its territory prior to the entry into force of the 
Agreement in accordance w ith Colombian law shall continue practicing in 
accordance with the existing law. 
Land and fluvial transport services MFN CBTS Any measure giving differential treat ment to countries under any bilateral or 
multilateral international agreement signed af ter the date of entr y into force of the 
Agreement involving road and river transport services. 
ª Colombia indicated that given the existence of the "Conventi on on the Exchange of Qualifications between Chile and Colombia",  
this reservation does not apply to the professional services  provided by Chile within the framework of the Agreement. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restrictio n;  
 MFN:  Restriction to MFN treatment;  NT:  National tr eatment restriction;  PR:  Performance requirements;  
 SMBD:  Restrictions affecting senior  management and board of directors. 
Source : Annex II of the Agreement.  
3. Chile 
130. Table IV.4 lists Chile's existing non-conforming measures. 
Table IV.4 
Reservations for existing measu res listed by Chile in Annex I 
Sector Obligations Mode Description 
All sectors NT I Property and any other rights on "State lands" are reserved for natural and 
juridical persons of Chile.  Nationality re quirement for real estate acquisitions 
and other legal rights in borders areas. 
All sectors NT/LP CBTS 85% of employees in companies with more than 25 employees must be 
Chilean nationals (except technical personnel who cannot be replaced by Chileans). 
Business Services/ Research NT CBTS Authorization requirement for resear ch within the Chilean  200-mile maritime 
zone (to be sent six months in advance). 
Business Services/ Research NT CBTS Authorization requirement for explorati ons for work of a scientific or technical 
nature, or mountain climbing, in areas that are adjacent to Chilean borders. 
Business Services/ 
Research in social sciences NT CBTS Permit requirement for excavati ons, surveys, probing and/or collecting 
anthropological, archaeological or pa leontological material.  The person 
responsible for the research must come from a Chilean government scientific institution or a university.  WT/REG272/1 
 Page 43 
 
 
  Sector Obligations Mode Description 
Printing, publishing and 
related industries NT/MFN/LP 
SMBD I/CBTS Residence requirement for the owner of a social communication medium or a 
national news agency.  Nationality require ment for president, manager or legal 
representative of the juridical person. 
Communications/ 
National or international 
long distance basic 
telecommunication services and intermediate services, telecommunication services, 
telecommunication 
complementary services, limited telecommunication services NT/MFN I Only juridical persons establishe d under domestic law may obtain licences to 
provide public and intermediate te lecommunication services.  Decision 
required by the relevant authority for the provision of complementary services.  
Permit required for limited telecommuni cation services. licences required for 
routing of international traffic. 
Communications NT/MFN/LP 
PR/SMBD I/CBTS Residence requirement for the owne r of social communication medium.  
Nationality requirement for president, ma nager or legal representative of the 
juridical person, and for the board of directors of companies providing free 
radio-broadcasting services.  Authorization for the supply of free 
audio-broadcasting services by an enterp rise with more than 10% of foreign 
capital participation subject to reciprocity .  Local content requirement of up to 
40% for programs broadcast thr ough open television channels.  
Residence/establishment requirements to  obtain a permit for limited radio 
broadcasting telecommunications services  and cable or microwave television 
services. 
Energy NT/PR I Exploration, exploitation, and treatment of liquid or gaseous hydrocarbons in 
waters subject to national jurisdictio n may be subject to administrative 
concessions or special operating contract s.  Production of nuclear energy for 
peaceful purposes only by the Chilean Nuclear Energy Commission, or with 
its authorization, jointly with third persons. 
Fishing/ Aquaculture NT I Only natural and juridical persons with permanent residency in Chile may 
obtain licences or authorization. 
Fishing NT/MFN/LP 
SMBD I/CBTS Permit requirement for harvesting a nd catching of hydrobiological species in 
internal waters, territorial sea and the exclusive economic zone.  
Establishment/residency requirements to hold a permit.  Fishing in internal 
waters is reserved for Chilean vessels.  Only natural or juridical persons with 
residence and real and effective seat in  Chile may register a vessel (except for 
vessels registered before 30 June 1991 and in case of reciprocity).  
Registration/residency requirements for artisanal fishing. 
Mining NT/PR I Administrative concessions or special operating contra cts for exploration, 
exploitation, and treatment of lithium in sea waters subject to national 
jurisdiction and in areas classified as  important to national security with 
mining effects, as determined by a supreme decree of President of the 
Republic.  Right of first refusal for the purchase of mineral products from 
mining operations in Chile with a significant amount of thorium or uranium.  Authorization requirement for natural atomic materials or extracted lithium and their extracts, derivates and compounds. 
Professional Services/ 
Professional, technical and 
specialised services NT/LP CBTS Registration requirement for ju ridical persons legally constituted as 
partnership or associati ons and whose main line of business is auditing. 
Professional Services/ 
Legal NT/MFN CBTS Nationality requirement for lawy ers (except for lawyers from Ecuador and 
international consultants). 
Professional Services/ Professional, technical and 
specialised services, 
auxiliary services for justice 
administration NT/LP CBTS Residency requirement for judicial ancillaries.  Nationality requirement for 
public defenders, public notaries, and custodians.  Archivists and arbitrators at 
law must be natural persons and lawyers.   Process servers and superior court 
attorneys must be natural persons or re sident with right to vote.  Residency 
requirement for auctioneers.  Qualification requirement for receivers in bankruptcy. 
Specialized Services/ Customs agents and brokers NT/LP CBTS Only by natural persons. 
Specialised Services/ 
Armed security guards NT CBTS Nationality requirement. 
Sports, industrial fishing and 
hunting, and recreational 
services LP CBTS Registration requirement for arms a nd explosives.  Authorization required for 
import of fireworks and for fireworks show. WT/REG272/1 
Page 44  
 
  Sector Obligations Mode Description 
Transportation/ 
Air transport NT/MFN/LP 
SMBD I/CBTS Registration requirement for aircrafts.   Principal domicile and effective seat 
requirement.  Citizenship requirement fo r president, manager, majority of 
directors and/or administrators of the juridical person.  Authorization required 
for foreign private aircrafts engaged in  non-commercial activities (for a period 
longer than 30 days) (except for air services under Article 10.12).  Licence 
requirement for crew members on airc raft used by a Chilean aviation 
company.  Air transportation services ( cabotage) may be subject to reciprocity. 
Notification requirement for foreign civ il aircraft not engaged in commercial 
transport activities or in non-scheduled co mmercial air transport to entry the 
Chilean territory. 
Transportation/ Road transport NT/MFN/LP CBTS Registration requirement.  Intern ational road transport services limited to 
companies with real and effective re sidence in, organized under the law of, 
and with more than 50% of capital and e ffective control of persons of Chile, 
Argentina, Bolivia, Brazil, Peru, Uruguay and Paraguay. 
Transportation/ Water transport NT/MFN/LP 
SMBD I/CBTS Registration requirement for vessels.  Principal domicile and effective seat 
requirement.  Citizenship requirement fo r president, manager, majority of 
directors and/or administrators of the juridical person.  Chilean ownership of 
at least 50% of capital.  Joint ownershi p possible with Chil ean citizenship of 
certain personnel.  Registration require ment for special vessels under certain 
conditions.  Use of pilotage, anchoring and harbour pilotage services may be 
required.  Nationality/qualification requirement for captains.  Nationality requirement for ship captains.  Cabotage reserved for Chilean vessels (with 
exceptions). 
Transportation/ 
Water transport NT/LP 
SMBD I/CBTS Nationality requirement. 
Note: CBTS: Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restriction ;  
MFN:  Restriction to MFN treatment;  NT:  National treat ment restriction;  PR:  Performance requirements;  
SMBD:  Restrictions affecting senior management and board of directors. 
Source : Annex I of the Agreement.  
131. Chile has specific GATS commitments in five of the 11 general sectors, namely:  business 
services, communication services (only telecoms), financial services, tourism and travel-related services, and transport services (only certain air tr ansport services).  No commitments have been 
undertaken in the following sector groups:  construction an d related engineering services;  distribution 
services;  educational services;  environmental services;  health related and social services;  recreational, cultural and sporting services. 
132. Under the Agreement, reservations on national tr eatment for services and investment apply to 
almost all sectors listed in Annex I in the form of licences, or permits, or registration requirements.  Local presence, either as a domicile or residency requirement
58, is required for a number of activities 
relating to the printing and publishing industry, communications sector, fishing, professional services, 
sports, industrial and other recreational services,  and transport services.  Performance requirements 
are indicated for the energy and mining sectors.  The MFN obligation is waived in sectors like 
communications, fishing, legal services, air, water and road transport services.  The provision of transportation services is often conditional on reci procity or bilateral agreements with other 
Latin American countries.  No existing reservations  on market access have been listed by Chile in 
Annex I;  however, Annex II provides for the oppor tunity of taking non-conforming measures on 
market access in all sectors, except for those listed in that Annex (see below). 
133. In comparison with its GATS Schedule, Chile has eliminated some horizontal limitations on 
market access for modes 3 and 4 under the Agreemen t.  These relate to authorization requirements to 
provide services through commercial presence based on the effects on economic activities in Chile 
                                                     
 
58 Chile indicated that from a lega l perspective, a domicile is a place of residence in which a person 
intends to live.  The distinction between domicile and residency is provided for in Chile's domestic legislation;  the two concepts are defined for the purpose of cases wh ere a person's place of domicile and place of residence 
differ.  WT/REG272/1 
 Page 45 
 
 
  and, for mode 4, to the application of domicile or residence requirements to senior and specialized 
personnel transferred within a foreign enterprise in Chile, which however is affected by the quota of 
25 per cent on foreign employees inscribed under mode  3.  Under the Agreement, Colombian services 
suppliers are exempted from limitations on tempor ary entry into Chilean territory, which under the 
GATS is two years, extendable for another two years.  With respect to national treatment, restrictions 
on transferring foreign capital abroad for the first th ree years after entry into Chile has been removed 
under the Agreement;  nonetheless, investment may be subject to restrictions as described in 
Annex 9B (Payments and Transfers) and 9-C (Exprop riation).  On the contrary, ownership or other 
rights over "State land"59 are reserved for Chilean natural or ju ridical persons (except for applicable 
legal exceptions), as well as real estate acquisitions and other legal rights in border areas which are 
limited to nationals.60  At least 85 per cent of total employees in enterprises with more than 
25 employees must be Chileans.  The latter two restrictions mirror Chile's horizontal limitations under the GATS.  Other limitations on national treatme nt listed by Chile under the Agreement concern 
foreign ownership of coastal and ag ricultural lands and of any interest in stocks or assets of a State 
enterprise or government entity (Annex II). 
134. With respect to sector-speci fic commitments, Chile has improved its GATS liberalization 
commitments in a number of sectors.  In busin ess services, Chile has commitments only in 
international legal services, accounting and auditi ng services, architectural and engineering services, 
management consulting services, and leasing servi ces without operators.  In these subsectors, 
modes 1, 2, and 4 are unbound and no limitations appl y to mode 3 (except for leasing services, whose 
provision is limited to legal persons established as open corporations.  Suppliers of professional 
services may be subject to assessment by competen t authorities and must show fulfilment of 
qualification requirements.  In addition, where such services involve an appearance or formal 
procedures before a Chilean court of justice or ad ministrative body, the intervention of a professional 
recognized in Chile is required.  Nationality and r esidency requirements apply for some providers of 
professional services, including technical and speci alized services, auxiliary services for justice 
administrations, customs agents and brokers, and ar med security guards.  In addition, only natural 
persons may practice as lawyers in Chile.  Research services, for which Chile has no GATS commitments, are liberalized under the Agreement provided that authorization by the relevant 
authority is obtained for speci fic research activities in certain areas of the Chilean territory. 
135. In the communications sector, Chile undertook co mmitments in the audiovisual sector.  The 
Agreement imposes nationality and residency requirements for managerial positions, such as the 
owner of a communication medium, or the president, administrators or legal representatives of the 
juridical person.  In addition, only juridical pe rsons established and resident in Chile may obtain 
licences for limited radio-broadcasting telecommuni cation services and limited cable television or 
microwave television services.  Licences shall also be  granted for free reception of radio-broadcasting 
services to companies with more than 10 per cent of foreign capital only under conditions of 
reciprocity.  A domestic content requirement of 40 per cent applies for programming in public open 
television channels.  Chile's GATS commitments in telecommunication services only cover international and domestic long distance basic telecommunications services, value added services, and private leased circuits.  In these subsectors, rest rictions on market access for mode 3 relate to 
concessions, licence, or permit requirements and to the type of commercial presence (only open 
                                                     
 
59 The term "State land" refers to State-owned land up to a distance of ten kilometres from the border 
and up to a distance of five kilometres from the coastline. 
60 Corporeal immovable property situ ated in areas declared "the bord erland zone" may not be acquired, 
either as property or in any other title, by:  (a) natural persons with nationality of a neighbouring country;  
(b) juridical persons with their principal seat in a neighbouring country;  (c) juridical persons with 40 per cent or 
more of capital owned by natural persons with nationality of a neighbouring country;  or (d) juridical persons effectively controlled by such natural persons.  This limitation may not apply if an exemption is granted by a 
Supreme Decree of the Pres ident of the Republic based on considerations of national interest. WT/REG272/1 
Page 46  
 
  corporations).  Under the Agreement, the te lecommunications market is not subject to 
non-conforming measures, except for providers of  public and intermediate telecommunication 
services who must obtain a licence from the Ministry of Transport and Telecommunications Licences are granted only to juridical persons established und er Chilean law.  A permit is also required for 
limited telecommunication services and the routing of international traffic, whereas a decision by the 
Undersecretariat of Telecommunications is expected  in order to supply complementary services, such 
as the connection of equipments to public network. 
136. With respect to transportation services, Chile 's WTO commitments are limited to certain 
auxiliary air transport services, where mode 3 is unrestricted and modes 1, 2 and 4 are unbound.  
Under the Agreement, Chile reserves the right to apply non-conforming measures on air, land, and 
water transport services.  Registration is required for either aircrafts and vessels by natural or juridical 
persons;  the latter must also be constituted in Chil e with principal domicile and real and effective seat 
therein.  Nationality requirements apply for manage rial positions (president, manager, majority of 
directors or administrators of the juridical person), crew members, captains and owners of vessels, and 
for majority capital ownership.  Foreign personnel engaged in air transportation services must also 
obtain a licence in Chile or have the licence obtaine d in another country recognized:  such recognition 
may occur through an international arrangement or r eciprocity.  Private foreign aircraft engaged in 
non-commercial activities (specialty air services ex cluded) may entry Chilean territory for up to 
30 days without authorization, provided that they have informed the relevant authorities at least 
24 hours in advance of entry. 
137. Similar restrictions on national treatment and local presence, as well as the application of the 
principle of reciprocity, apply to water tran sport services.  Here, cabotage is reserved for 
Chilean vessels, except for foreign merchant  vessels whose cargo volume exceeds 900 tonnes, 
following a public tender by the user with "due anticipation", i.e. 30 work ing days.  When the cargo 
volumes involved are equal to or less than 900 tonnes, and no vessels flying the Chilean flag are available, the Maritime Authority shall authorize embarking such cargo on foreign merchant vessels.  
Port activities are reserved for nationals or juri dical persons legally constituted and principally 
domiciled in Chile.  Local land transportation ser vices cannot be provided by foreign natural or 
juridical persons, which may only supply intern ational services.  However, international 
transportation services within the territories of Chil e, Argentina, Bolivia, Brazil, Peru, Uruguay and 
Paraguay are reserved for companies organized under the law of these countries and with real and effective domicile therein. 
138. Annex II lists reservations take n by Chile for sectors, subsectors and activities for which it 
may maintain existing, or adopt new or more rest rictive measures (see Table IV.5 below).  These 
include market access restrictions in a number of  sectors, except for those sectors and subsectors 
listed in the Annex for which Chile has no GATS commitments.
61  Chile may maintain limitations on 
the ownership or control of costal lands and ag ricultural lands, and a national treatment reservation 
regarding the sale or disposal of assets in state en terprises or government entities.  Chile also took a 
MFN reservation in all sectors, reserving the right to give preferential treatment to countries under any previous international agreement.  For future international agreements, it reserved the right to 
grant preferential treatment for aviation, fisheries,  and maritime matters, including salvage.  Other 
                                                     
 
61 These include the following sectors,  subsectors, or activities:  professional services;  computer and 
related services;  research and development services;  real estate services;  rent al/leasing services without 
operators, related to vessels, aircraft, any other transport equipment, and other machinery and equipment;  other business services;  telecommunications (national or inte rnational long distance telecommunications services;  
intermediate services, supplementary services, and limited services);  distribution services;  tourism and travel 
related services;  recreational, cultural, and sporting servi ces;  road transport services;  services auxiliary to all 
transport;  air transport services (air craft repair and maintenance, selling and marketing, computer reservation 
system services, and specialty air services).  WT/REG272/1 
 Page 47 
 
 
  reservations relate, inter alia , to issues involving minorities and indigenous peoples, education 
services, telecommunications, construction, environmen tal services, fisheries, social services, cultural 
industries, and road transportation services. 
Table IV.5 
Reservations for future measures listed by Chile in Annex II 
Sector Obligations Mode Description 
All sectors NT/MFN I Any measure relating to residenc y requirement for the ownership of costal lands.  
Natural and juridical persons, and resident  may own or control agricultural lands 
All sectors NT/SMBD I Right to prohibit or limit the owne rship of any interest in stock or asset held in an 
existing state enterprise or governmental entity and the right of foreign investors 
or their investments to c ontrol any State company created thereby or investments 
made by the same. 
All sectors MFN I/CBTS Any measure giving differen tial treatment to countries under any bilateral or 
multilateral international agreement in for ce or signed prior to the date of entry 
into force of the Agreemen t, or under any bilateral or multilateral international 
agreement in force or signed after the date  of entry into force of the Agreement 
involving aviation, fisheries, and maritime matters, including salvage. 
All sectors MA I/CBTS Any measure relating to ma rket access except for a number of sectors and 
subsectors which are listed in the Annex. 
Issues related to minorities NT/MFN/LP 
PR/SMBD I/CBTS Any measure according rights or preferences to socially or economically 
disadvantaged minorities. 
Issues related to indigenous population NT/MFN/LP 
PR/SMBD  Any measure denying investors and thei r investments or service suppliers of 
Colombia any rights or preferences provided to indigenous peoples. 
Communications/ 
Telecommunications NT/MFN/LP CBTS Any measure relating to cross-borde r trade in of local basic telecommunication 
networks and services, one way sa tellite broadcasting of digital 
telecommunication services, whether th ese involve direct home television 
broadcasting, direct broadcasting of  television services and direct 
audio-broadcasting;  supplementary te lecommunication services;  and limited 
telecommunication services. 
Communications/ Telecommunications NT/MFN/PR 
SMBD I Any measure related to the investors of th e other Party, or to their investments in 
local basic telecommunication networks and services;  one way satellite 
broadcasting of digital telecommunication services, whether these involve direct 
home television broadcasting, direct broad casting of television services and direct 
audio-broadcasting;  supplementary te lecommunication services;  and limited 
telecommunication services. 
Education NT/MFN/LP CBTS Any measure relating to na tural persons supplying educational services.  Not 
applicable to second-language training, co rporate, business, and industrial training 
and skill upgrading 
Government finance NT I Any measure relating to th e acquisition, sale, or disposal by nationals of 
Colombia of bonds, treasury securities, or  any other type of debt instruments 
issued by the Central Bank or the Government of Chile. 
Fishing/ Services incidental to 
fishing NT/MFN I/CBTS Right to control foreign fishing activities, access to Chilean ports, and licence 
requirement. 
Cultural industries MFN I/CBTS Any measure giving differential treatment to countries under any existing or 
future bilateral or multilateral interna tional agreement with respect to cultural 
industries, such as audiovisual cooperation agreements. 
Social services NT/MFN/ 
LPPR/SMBD I/CBTS Any measure on the provision of public law enforcement and correctional 
services, as well as the following services  established or maintained on a public 
interest basis:  income secu rity or insurance;  social security;  social welfare;  
public education;  public training;   health care, and child care. 
Environmental services NT/MFN/LP CBTS Any measure limiti ng the production and distributi on of drinking water, the 
collection and disposal of waste water a nd sanitation services, such as sewage 
systems, waste disposal and waste water tr eatment to juridical persons or created 
in accordance with the requirement s established by Chilean law. 
Construction services NT/LP CBTS Any measure imposing resi dency, registration, or any another form of local 
presence or financial security requirements. 
Transportation/ Road transport NT I/CBTS Transport of goods or passengers within Chilean territory is reserved for juridical 
or natural persons of Chile. 
International road transportation/ 
Road transport NT/MFN I/CBTS Any measure with respect to juridi cal or natural persons of Colombia pursuant to 
the Agreement on Internationa l Road Transportation.  In ternational transportation 
is reserved for natural or juridical pers ons of Chile.  Foreign capital participation 
is limited to 49%. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restrictio n;  
MFN:  Restriction to MFN treatment;  NT:  National treat ment restriction;  PR:  Performance requirements;  
SMBD:  Restrictions affecting senior management and board of directors. 
Source : Annex II of the Agreement.  WT/REG272/1 
Page 48  
 
  E. R
EGULATORY PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
1. Domestic regulation 
139. Where a Party requires authorization for the supply of a service, its competent authorities 
shall, within a prudent period of time from the su bmission of an application considered complete 
under domestic laws and regul ations, inform the applicant of their decision.  At the request of the 
applicant, the Party's competen t authorities shall provide, without undue delay, information 
concerning the status of the application.  This ob ligation shall not apply to authorization requirements 
that are within the scope of Article 10.6.2 (fu ture non-conforming measures) (Article 10.8.2). 
140. Measures related to qualification requirements and procedures, technical standards and 
licensing requirements shall be:  (a) based on obj ective and transparent criteria; (b) not more 
burdensome than necessary to ensure the quality of  the service; and (c) in the case of licensing 
procedures, not in themselves a restriction on  the supply of the service (Article 10.8.2). 
141. If the results of negotiations on GATS Article VI :4 enter into effect, Article 10.8 shall be 
amended, after consultati ons between the Parties, to incorporate this result (Article 10.8.3). 
142. Further to transparency obligations in Chapter 14, the Parties are required by Article 10.7 to:  
(a) establish or maintain an adequate mechanism to address enquiries from interested persons on any 
matter covered by Chapter 10;  (b) to respond in  writing, including upon request, to substantial 
comments received by interested persons with respect to planned regulations62;  and (c) guarantee a 
reasonable period of time between the publication of th e regulation and its date of entry into force. 
2. Recognition 
143. A Party may recognize the education or experien ce obtained, requirements met, or licences or 
certifications granted in the other Party through harmonization, on the basis of an agreement or 
arrangement between the Parties, or autonomously.  With respect to recognition granted by a Party to 
a non-Party, adequate opportunity shall be given to the other Party, where in terested, to demonstrate 
its qualification for such recognition (Article 10.9). 
144. Annex 10.9 regulates the licensing or certif ication of professional service suppliers.63  T h e  
Parties are to encourage relevant bodies in their territories to develop mutually acceptable standards 
and criteria for licensing and certification of professional service suppliers, as well as for the mutual recognition of professional degrees, and to provide  recommendations on mutual recognition to the 
Free Trade Commission.  The Commission shall review the recommendation within a reasonable period of time to determine its consistency with th e Agreement.  Based on the review, the Parties' 
competent authorities are encouraged to implemen t the recommendation within a mutually agreed 
period of time.  In addition, for agreed individua l professional services, each Party shall encourage its 
relevant bodies to develop procedures for the tem porary licensing of professional services suppliers of 
the other Parties. 
145. No later than one year after the entry into fo rce of the Agreement, the Parties shall set up a 
Working Group on Professional Services, comprising their representatives, to facilitate activities 
covered by Annex 10.9.  The Group shall, inter alia , take into consideration any relevant bilateral, 
                                                     
 
62 Footnote 9 to Article 10.7 specifies that the te rm "regulation" also covers the establishment or 
application of authorization and licensing requirements. 
63 Professional services means se rvices, the supply of which requ ires specialized  post secondary 
education, or equivalent training or experience, and for which the right to practice is granted or restricted by a Party, but does not include services supplied by trades persons or vessel and aircraft crew members 
(Article 10.12).  WT/REG272/1 
 Page 49 
 
 
  plurilateral, and multilateral ag reements on professional services and develop guidelines for the 
licensing and certification of professional services.  It shall report on progress to the Commission within two years from the entry into force of th e Agreement, and recommend, where appropriate, the 
promotion of mutual recognition of tempor ary standards and licensing requirements. 
146. Annex 10.9 also provides for the recognition of licences by competent authorities of a Party 
for engineers of the other Party.  Each Party shall request the relevant professional bodies in its 
territory to submit recommendations to the Commissi on within 18 months from the establishment of 
the Working Group.  In accordance with the Commission's revisions, the Parties shall urge their 
respective competent authorities, where appropria te, to implement the recommendations within a 
mutually agreed timeframe.  The Commission shall review the implementation of Annex 10.9 at least 
once every three years. 
3. Sector-specific provisions on trade in services and investment 
147. There are no sector-specific provisions on trade in services and investment under the 
Agreement. 
V. GENERAL PROVISIONS OF THE AGREEMENT 
1. Transparency 
148. Transparency provisions are addressed in Chapter 14.  Each Party shall:  establish an enquiry 
point in its territory to facilitate bilateral communi cations (Article 14.1);  p ublish or make otherwise 
available, without undue delay, its  laws, regulations, procedures and administrative rulings of general 
application (Article 14.2);  notify any existing or fu ture measure that may affect substantial interests 
of a Party (Article 14.3);  and ensure that its ad ministrative proceedings are applied in a consistent, 
impartial and reasonable ma nner (Article 14.4).  With respect to an administrative proceeding, the 
Agreement provides that, when possible, affected pe rsons of a Party are informed of the proceeding 
and have the opportunity to participate in it befo re any definitive administrative action is taken. 
149. Each Party shall also establish or maintain judi cial or administrative tribunals or procedures 
for review and appeal of the final administrative ac tions for matters covered by the Agreement.  Such 
tribunals must be impartial, independent from ad ministrative authorities, and with no substantial 
interests in the outcome of the proceeding (Article 14.5). 
2. Current payments and capital movements 
150. See section IV.C.6 "Other provisions on investment". 
3. Exceptions 
151. Provisions relating to exceptions are listed in  Chapter 21.  In this way, the Agreement 
incorporates Article XX of GATT 1994 and its inte rpretative notes, with respect to measures in 
Chapters 3 to 7 (Trade in Goods, Rules of Orig in, Trade Facilitation, SPS and TBT measures) and the 
liberalization programme in effect  under Article 22.3.3;  and Article  XIV of the GATS, including its 
footnotes, with respect to measures in Chapter 10 (Cross-border Trade in Services) (Article 21.1). 
152. Exceptions for essential security, public order a nd taxation are contained in Articles 21.2, 
21.3, and 21.4 respectively. 
153. With respect to the provision on taxation, Article 21.4 provides that in the event of any 
inconsistency between the Agreemen t and any tax convention concluded by the Parties, the latter shall WT/REG272/1 
Page 50  
 
  prevail.  Similarly, in the case of a tax convent ion concluded between the Parties, the competent 
authorities under the convention are solely res ponsible for determining the existence of the 
inconsistency.  Articles 3.1 (Na tional Treatment), 3.2 (Export Duties) , and paragraphs 2,3, and 4 of 
Article 9.6 (Performance Requirement s) apply to taxation (Article 21.4 .3 and 5).  Articles 9.2 and 9.3, 
and 10.2 and 10.3 (national and MFN treatment for services and investment) apply to all taxation 
measures, other than those on income, capital gains, or on the taxable capital of corporations, taxes on 
estates, inheritances, gifts, and generation-skipping  transfers (Article 21.4.4(b)).  Articles 9.10 
(Expropriation and Compensation) and 9.16 (Submissi on of a Claim to Arbitration) shall apply to 
taxation measures to the extent that such measures c onstitute expropriation.  An investor that seeks to 
invoke Article 9.10 with respect to a taxation measure  must indicate to the competent authorities, at 
the time that it gives notice under Article 9.16,  whether or not the measure involves an 
expropriation.
64  If the competent authorities do not agree to consider the issue or, having considered 
it, fail to agree that the measure is an expropriation within six months of the referral, the investor may 
submit a claim for arbitration unde r Article 9.16 (Article 21.4.6). 
4. Accession and withdrawal 
154. Under Article 22.6 and in conformity with th e Montevideo Treaty of 1980, all members of 
LAIA may accede to the Agreement, subject to the terms and conditions agreed between the Parties 
and the acceding party.  The accession shall be fo rmalized in an Additional Protocol to the 
Agreement, which shall enter into force 30 days after it has been registered with the LAIA Secretariat. 
155. A Party may withdraw from the Agreement by notifying in writing the other Party;  its 
withdrawal shall take effect 180 days after the date of notification (Article 22.5.1). 
156. With respect to covered investments, provisions  of Chapter 9 (Investment) shall remain in 
force for a period of ten years from the date of notification of withdrawal from the Agreement (Article 22.5.2). 
5. Institutional framework 
157. The Free Trade Commission was established under Chap ter 15.  It consists of representatives 
of the Parties, which are:  for Colombia, the Minist er of Trade, Industry and Tourism;  and for Chile, 
the Minister of External Relations (Annex 15.1.1).   The functions of the Commission are listed in 
Article 15.1 and include, inter alia :  monitoring the consistency and implementation of the 
Agreement's provisions;  resolving disputes related to the interpretation or implementation of the 
Agreement;  supervising the work of comm ittees and working groups established under the 
Agreement;  and approve any modifi cation with respect to the liberalization schedule, the rules of 
origin, and the sections of Annex 13.1 (Public Procurement). 
158. The Commission shall convene at least once a year.  As at August 2010, the Commission has 
held three meetings, on 2 July and 9 October 2009, and on 7 May 2010.
65 
159. Article 15.2 requires the Parties to designate th eir respective Coordinators, who together shall 
prepare the meetings of the Commission and pursu e the Commission's decisions.  The Coordinators 
are:  for Colombia, the Director of Economic Integr ation of the Ministry of Commerce, Industry and 
                                                      
64 The competent authorities are:  for Colombia, the Technical Vice-Ministry of the Ministry of 
Treasury and Public Credit;  and for Chile, the Director of the Internal Taxation Service of the Ministry of 
Treasure (Annex 21.4). 
65 Source:  http://www.sice.oas.org/TPD/CHL_COL/CHL_COL_s.ASP .  WT/REG272/1 
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  Tourism;  and for Chile, the Latin America Departme nt of the General Directorate of International 
Economic Affairs of the Ministry of External Relations.66 
6. Dispute settlement 
160. The dispute settlement procedure is laid down in Chapter 16.  The Parties, in accordance with 
the objectives of that Chapter, shall endeavour to  resolve any dispute through a mutually agreed 
solution (Article 16.1).  The Chapter applies to:  (a) disputes related to the interpretation or 
application of the Agreement;  (b) measures of a Part y that are considered by the other Party to be 
inconsistent with the Agreement's obligations;  or (c) existing or future measures of a Party that may 
cause nullification or impairment to the other Party,  in accordance with Annex 16.2.1 (Article 16.2).  
Paragraph 1 of Annex 16.2.1 states that a Party ma y apply the dispute settlement provisions of the 
Agreement when it considers that any benefit accrui ng to it by the following provisions is being 
nullified or impaired:  (a) Chapters 3 (Trade in G oods), 4 (Rules of Origin), and 5 (Trade Facilitation), 
and the liberalization programme under Article 22.3.3;   (b) Chapter 7 (Technical Barriers to Trade);  
(c) Chapter 13 (Public Procurement);  or (d) Ch apter 10 (Cross-border Trade in Services), with the 
exception of measures under Article 21.1 (General  Exceptions).  Any matter related to the 
interpretation, application, or compliance with  provisions of Chapters 17 (Labour) and 18 
(Environment) is to be resolved through pro cedures in those chapters (Article 16.2.3). 
161. Article 16.3 establishes the principle of "forum-shopping", providing that once the forum has 
been selected it is used to the exclusion of the others.  The dispute settlement mechanism of the 
Agreement provides for consultations (Article 16.4) , intervention of the Commission (Article 16.6), 
and establishment of a Panel (Article 16.7).  Th e dispute settlement procedure is summarized in 
Table V.1 below.  The Panel shall comprise three memb ers agreed by the Parti es.  In the absence of 
an agreement, the LAIA Secretariat shall designa te the panellists.  Where the Party complained 
against considers that it has eliminated the non-co nformity or the nullification or impairment in 
accordance with the Panel's report, it may ask the Pane l to review the matter.  The Panel shall issue its 
preliminary report within 90 days from when the last panellist was designated and its final report 
within 30 days of the submission of the prelimin ary report.  Where the Party complained against 
considers that it has eliminated the non-conformity or the nullification or impairment in accordance 
with the Panel's report, it may ask the Panel to review  the matter.  Where the Panel finds that the Party 
complained against has complied with its decision,  the complaining Party shall revoke, without undue 
delay, the suspension of benefits (Article 16.16) .  The Agreement does not provide for an appeal 
procedure. 
                                                      
66 Information provided by the Parties. WT/REG272/1 
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  Table V.1 
Synopsis of the Agreement's dispute settlement provisions 
Consultations  
(Art. 16.4) 
30/15 days  
(perishable goods) 
Meeting of the 
Commission 
within 10 days 
(Art. 16.6) 
Request for a Panel  
(Art. 16.7 ) 
Panel selection (Art.16.8) 
within 30 days 
Rules of Procedures  
(Art. 16.10)  
90/45 days (perishable goods) 
Preliminary Report  
(Art. 16.11 ) Implementation 
(Art. 16.13) 
Request to convene 
the original Panel 
(Art. 16.14) 
60 days 
Panel's determination
Suspension of Benefits
(Art. 16.15.3)  
30 days by agreement or 
within 45 days 
If no agreement 
no agreement within 30 days or
non-implementation  If no agreement within: 
- 15 days from the meeting of the 
Commission; or 
- 55 days from Consultations and no 
meeting of the Commission (30 days for 
perishable goods) 
Parties' comments 
within 15 days Non-implementation 
Negotiations on 
compensation 
(Art.16.15) 
Final Report  
(Art. 16.12) 
to be published within 15 days 
 
Source : The Free Trade Agreement between Colombia and Chile, Chapter 16. 
162. The Agreement provides for a specific procedur e for the settlement of disputes between an 
investor of a Party and the other Party, as indicated in Section B of Chapter 11.  This applies only 
with respect to obligations covered under Section A of Chapter 11.  The mechanism envisages prior 
recourse to consultations and nego tiations (Article 9.15);  in the absence of a mutually agreed 
solution, the Parties may submit a claim for arbitra tion in accordance with the rules and procedures of 
the ICSID, if both Parties are parties to the ICSI D Convention, the UNICITRAL Arbitration Rules, or 
any other arbitration institution or rules agreed be tween the Parties (Article 9.16).  The investor may 
submit the claim on its own behalf or  on behalf of an enterprise of the other Party that is a juridical 
person owned or controlled by the investor directly or indirectly.67  The investor shall indicate in its 
request the alleged violation and the loss or damage by reason of, or arising out of, that violation. 
                                                      
67 To submit a claim, the investor must be nati onal of a Party, in accord ance with the "Constitución 
Política" of that Party (Article 9.28).  WT/REG272/1 
 Page 53 
 
 
  163. The investor shall notify the other Party of its intention to resort to arbitration ("Notice of 
Intent") at least 180 days before the submission of  the claim for arbitration which shall be submitted 
between six months of the event and not more than  39 months of the complainant learning about the 
damage.68  No claim shall be made if it has already b een submitted to an administrative or judicial 
tribunal in the complaining Party, or to any other binding dispute settlement procedure (Article 9.18). 
164. The Tribunal shall comprise three arbitrators,  unless otherwise agreed, to be selected in 
agreement by the disputing parties within 75 days fro m the submission of the claim;  in the absence of 
an agreement between the disputing parties, the S ecretary-General of ICSID shall serve as appointing 
authority (Article 9.19).  The Tribunal's final award is binding on the disputing parties.  Where a Tribunal makes a final award against the Party, it ma y award, separately or in combination, monetary 
damages and any applicable interest, and/or the res titution of property and any applicable interest, in 
which case the Party may pay monetary damages and any applicable interest in lieu of restitution.  If 
the Party fails to abide by or comply with the fina l award, upon request of the investor, a new arbitral 
panel shall be established pursuant to Article 16.7.  The investor may seek in such proceedings:  (a) a 
determination that the failure to abide by or comp ly with the final award is inconsistent with the 
Agreement's obligations;  and (b) a recommendation that  the Party abide by or comply with the final 
award (Article 9.26). 
7. Relationship with other agreements concluded by the Parties 
165. Under Article 20.2, the Parties reaffirm their rights and obligations under the 
WTO Agreement, the Montevideo Treaty of 1980, an d any other agreement concluded by the Parties. 
166. The Parties shall seek convergence between the Agreement and other integration agreements 
concluded with Latin American countries, in conf ormity with the mechanisms established under the 
Montevideo Treaty of 1980 (Article 22.7). 
167. Table V.2 shows the Parties' participation in  other RTAs, notified and non-notified to the 
WTO, in force as of September 2010.  In addition to the Agreement with Chile, Colombia has FTAs 
with the Central American Northern  Triangle countries and with Mexico.
69  Colombia is also a 
member of the Andean Community and LAIA.  Within the LAIA fra mework, Colombia has 
concluded "partial scope agreements" with several  Latin American countries.  Of these, the 
agreements with Cuba, Nicaragua, Costa Rica,  Panama, CARICOM and MERCOSUR are currently 
in force, the latter having been negotiated by Colombia as a member of the Andean Community.70 
168. Chile has 16 FTAs with countries all over the world.  Like Colombia, it is a LAIA member, 
under whose "umbrella" it has partial scope agreements  with Ecuador, Peru, Bolivia, Venezuela, Cuba 
and MERCOSUR.  In addition, it has a framework agreement with Central America, which includes 
Costa Rica, El Salvador, Guatemala, and Honduras.71 
                                                      
68 All notifications and requests pursuant to Sec tion B of Chapter 11 shall be addressed to the 
Directorate of Foreign Investment a nd Services in Colombia, and the Directorate of Legal Affairs in Chile 
(Annex 9-E). 
69 Venezuela withdrew from the Agreement betw een Colombia, Mexico and Venezuela (G-3) on 
19 November 2006. 
70 The partial scope agreements concluded with Costa Rica and Nicaragua are only in force for 
Colombia. 
71 All the partial scope agreements concluded by Co lombia and Chile in the framework of LAIA have 
not been notified to the WTO;  however, WTO Members were informed of the conclusions of these RTAs in 
biennials reports presented by the LAIA Secretariat to th e Committee on Trade an d Development.  See 
Document WT/COMTD/11, 8 October 1997 and WT/COMTD/59, 25 January 2007. WT/REG272/1 
Page 54  
 
  Table V.2 
Colombia and Chile:  Participation in other RTAs (not ified and non-notified in force), as at September 2010  
GATT/WTO Notification Partner/Agreement Date of 
entry into 
force Type of agreement 
Year WTO Provision 
COLOMBIA  
Mexico 1.1.1995 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
Northern Triangle 13.11.09a Goods & Services Not notified  
Andean Community-MERCOSUR 05.01.05 Goods Not notified  
Cuba 10.07.01 Goods Not notified  
CARICOM 01.01.95 Goods Not notified  
Panama 18.01.95 Goods Not notified  
Costa Rica 02.09.85 Goods Not notified  
Nicaragua 02.09.85 Goods Not notified  
  CHILEb   
Australia 06.03.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
India 17.08.07 Goods 2009 Enabling Clause 
Panama 07.03.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
China 01.10.06 Goods 2007 GATT Art. XXIV 
Trans-Pacific SEP 28.05.06c Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Union 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
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 
El Salvador (Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Costa Rica (Central America) 14.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 31.07.99 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 
Guatemala (Central America)  23.03.10 Goods & Services Not notified  
Ecuador 25.01.10 Goods Not notified 
Peru 01.03.09 Goods Not notified 
Cuba 26.07.08 Goods Not notified 
Honduras (Central America) 19.07.08 Goods & Services Not notified 
MERCOSUR 01.10.96 Goods Not notified 
Bolivia 06.04.93 Goods Not notified 
Venezuela 02.04.93 Goods Not notified 
a The Agreement entered into force on 13 November 2009 be tween Guatemala and Colombia, on 1 February 2010 between 
El Salvador and Colombia, and on 27 Ma rch 2010 between Honduras and Colombia. 
b Chile has concluded seven RTAs under the LAIA framework (with MERCOSUR, Boliv ia, Colombia, Cuba, Ecuador, Peru and 
Venezuela).  These RTAs have not been notified, but  are included in periodic reports submitted by LAIA. 
c The Agreement entered into force on 28 May 2006 for New Zeal and and Singapore;  12 July 2006 for Brunei Darussalam;  and 
8 November 2006 for Chile. 
GSTP:  Global System of Trade Preferences. 
LAIA:  Latin American Integration Association. Northern Triangle: Guatemala,  El Salvador, and Honduras. 
Trans-Pacific Strategic Economic Partnership:  Brunei Darussalam, New Zealand, and Singapore. 
EFTA:  European Free Trade Association. PTN:  Protocol relating to Trade Negotiations among De veloping Countries. 
Source : WTO Secretariat.   WT/REG272/1 
 Page 55 
 
 
  8. Government procurement 
169. Chapter 13 contains disciplines on government pr ocurement.  Both Parties are observers to 
the WTO Agreement on Government Procurement (G PA):  Colombia since 27 February 1996, and 
Chile since 29 September 1997.72 
170. Chapter 13 covers any measure of a Party adopted or maintained by its central, sub-central, or 
other entities, as listed in Annex 13.1, by any c ontractual means - includi ng purchase and rental or 
lease, with or without an option to buy, build-ope rate-transfer and public works concession  subject to 
conditions in Annex 13.1 (Article 13.1.1).  It does not  apply to:  (a) non-contractual agreements or any 
form of government assistance by a Party or a Stat e enterprise - including grants, loans, equity 
infusions, fiscal incentives, subsidies, guarantees,  cooperative agreements, government provision of 
goods and services to persons or governments at regi onal or local level, and purchases made with the 
purpose of providing foreign assistance; (b) purchases funded by international grants, loans or other 
assistance, whose provision is subject to conditions  inconsistent with the Chapter's provisions; 
(c) hiring of public employees and employment-related measures;  (d) acquisition of fiscal agency or depository services, liquidation and management se rvices for regulated financial institutions, and 
services related to the sale, redemption and distribu tion of government debt; and (e) financial services 
(Article 13.1.2).
73  Section G of Annex 13.1 specifies th at the Chapter does not apply to the 
procurement of goods and services by other Colombia n or Chilean entities, to real estate rental or 
acquisition, and to purchases made by the external  service of either Party, exclusively for its 
functioning and management.  In addition, Colomb ia's excludes:  procurem ent related to national 
defence and security;  reservation of contracts in fa vour of small and medium enterprises up to a value 
of US$125,000;  programmes of soci al rehabilitation from resolution of conflicts;  and acquisition of 
goods for research and development services. 
171. General principles governing the Chapter's provisions are spelled out in Article 13.2.  Each 
Party shall grant to goods, services, and suppliers of  the other Party treatment no less favourable than 
that accorded to its own goods, services, and supp liers (paragraph 1).  The Parties shall not 
discriminate between locally established suppliers on the basis of affiliation or foreign ownership, or 
when the goods or services supplied are originating from a non-party (paragraph 2).  The determination of origin of such goods is made on a non-preferential basis (paragraph 3).  Neither 
entity shall consider, request, or impose any speci al compensatory condition during the procurement 
process (paragraph 4).  The principles of national treatment and non-discrimination do not apply to 
measures related to import duties or charges of an y kind, methods of collection, and other import 
regulations, including restrictions and formalities, or  measures related to trade in services, other than 
specific measures on public procurement under the Chapter (paragraph 5). 
172. The Chapter does not prevent the Parties fro m developing new procurement policies, 
procedures, or contractual means on condition th at they are compatible with its provisions 
(Article 3.1.7).  Any Party may modify its cove rage under the Chapter by notifying in writing the 
other Party and by providing compensation, unless the notified Party objects in writing within 
30 days.  Compensation is not needed (provided that the other Party is notified and does not object within 30 days) for purely formal rectifications to a Party's coverage or minor amendments to its Lists 
in Sections A-C of Annex 13.1 (covered entities), and when the Parties agree that the modification 
concerns an entity that is not controlled or influenced  by a Party.  The Commission shall give effect to 
the agreed modification, rectification, or minor amendment by immediately modifying the relevant 
Section of Annex 13.1 (Article 13. 14).  Article 13.19 provides for future negotiations to extend the 
scope of the Chapter on a reciprocal basis when a Party accords to suppliers of a non-party, through 
                                                     
 
72 http://www.wto.org/english/trat op_e/gproc_e/gp_gpa_e.htm  
73 Footnote 1 to Article 13.1.2(e) specifies that Chapter 13 does not apply to procurement of banking, 
financial, or specialized services related to the incurring of public indebtedness or public debt management. WT/REG272/1 
Page 56  
 
  an international agreement that came into effect after the entry into force of the Agreement, more 
favourable access to its procurement market than that granted to the other Party's suppliers. 
173. Under Annex 13.1, Colombia has inscribed 28 en tities at central level;  all departments and 
municipalities as sub-central entities;  and 11 other en tities.  Chile has listed 34 entities (20 Ministries 
and 14 regional administrations) at central level - including all other central, regional or local public 
entities without industrial or commercial purpose, and all entities of the General Directorate of Civil 
Aviation that, among other activities, offer airport f acilities for air transportation;  346 sub-central 
entities;  and ten other entities.  Procurement of certain goods by some Colombian entities is excluded 
from the Chapter's coverage (see Table V.3 below).  With respect to procurement of services, the 
following sectors are not covered:  for Colombia, research and development services;  architectural 
and engineering services;  public services;  social services;  editing services;  television programme 
production services
74;  for Chile, all financial services.  With respect to construction services, 
Colombia maintains the right to apply specific cond itions for the hiring of local personnel in rural 
areas for the construction, maintenance, or rehabilita tion of roads and motorways in order to promote 
employment and improve life conditions in such areas;  whereas Chile excludes all construction 
services in Easter Island. 
Table V.3 
Goods excluded by Colombia from Chapter 13 (by entities) 
Notes to Schedule of Colombia 
1) Ministry of National Defence:  goods listed in Section 2 (food products, beverages and tobacco;  textiles, apparel and leather 
products) of the United Nations Central Produc t Classification (UN CPC) purchased by the Army, Air Force or National Police. 
2) Ministry of Agriculture and Rural Development:  procurement of food products, agricultu ral raw materials or inputs and live 
animals, related to agriculture support programmes and food assistance. 
3) Ministry of Social Protection :  goods listed in Section 2 of the UN CPC for social assistance programmes by the Colombian 
Institute of Fa mily Welfare. 
4) Ministry of Mines and Energy:  nuclear materials and technology by the Co lombian Institute of Geology and Mining. 
5) Ministry of Transportation:  procurement by the Special Admini strative Unit of Civil Aviation. 
6) National Registry of Civil Status :  procurement for the preparation and conduct of elections. 
7) Logistic Agency of the Military Forces, " Fondo Rotatorio " of National Police, and " Fondo Rotatorio " of the 
Administrative Department of Security :  goods listed in Section 2 of the UN CPC by  the Army, Air Force or National Police. 
Source : Annex 13.1 of the Agreement.  
174. Thresholds shall be equal to or above :  50,000 SDR for goods and services, and 
5,000,000 SDR for construction services by central  entities;  200,000 SDR for goods and services, and 
5,000,000 SDR for construction services by sub- central entities;  and 220,000 SDR for goods and 
services, and 5,000,000 SDR for construction services by  other entities.  They shall be adjusted every 
two years with each adjustment taking effect on 1 Ja nuary, and shall be converted into the Parties' 
respective national currencies as fixed by the Parties fo r two years at the daily average exchange rate 
for SDRs. 
175. Tendering procedures are described in Articles 13.4 to 13.12.  Each procuring entity shall 
publish in advance a notice of intended procurement (Article 13.4).  The deadline for the submission 
of tenders shall be no less than 10 days from public ation of the notice (Article 13.5).  The procuring 
entity shall provide interested suppliers with a ll the necessary information, including the technical 
criteria that will be considered when evaluating the offer (Article 13.6).  Technical specifications shall 
be expressed in terms of perfo rmance requirements and based on in ternational standards, where 
applicable, or on recognized nationa l regulations (Article 13.7).  A procuring entity may exclude a 
supplier for reasons of bankruptcy, liquidation or inso lvency, false declarations or significant failures 
to comply with obligations under previous contracts (Article 13.8).  In genera l, procurement shall be 
                                                      
74 The services sectoral classification is in accord ance with the Central Product Classification of the 
United Nations.  WT/REG272/1 
 Page 57 
 
 
  carried out through open tendering;  other procedures can be used in certain circumstances, provided 
that they are not used to avoid competition, prot ect domestic suppliers, or discriminate against the 
other Party's suppliers (Article 13.9).75  Tenders must be evaluated on equal terms and impartially 
(Article 13.10).  Suppliers participa ting in a tender shall be promptly informed of the award decision;  
the procuring entity shall, upon the request of an  unsuccessful supplier, provide reasons for the 
rejection.  The award decision shall be published without delay;  all registry and reports on the 
tendering procedure and awarding of the contract shall be kept for at least three years (Article 13.11). 
176. Each Party shall provide for administrative or penal sanctions in the event of corruption in 
public procurement, and shall establish policies a nd procedures to eliminate potential conflict of 
interests by entities involved or that may influen ce public tendering (Article 13.12).  Article 13.13 
provides for a challenge procedure, which must be  appropriate, transparent, effective, and in 
conformity with the principle of due process.  E ach Party shall establish at least one independent 
administrative or judicial authority to revi ew the challenge and make recommendations.  
Precautionary measures may be adopted, pending th e completion of the challenge, to allow the 
supplier to participate in the tender and to ensu re the Chapter's correct application, including 
suspending the award of the contract or the execution of an awarded contract.  The supplier shall have 
at least ten days to prepare and submit, in writing, its complaint.  The reviewing authority shall issue, 
in writing and without undue delay, its decision with  a statement describing the basis for the decision. 
177. Exceptions to the Chapter's obligations in Artic le 13.16 relate to the protection of public 
morals, order, or security;  human, animal, or ve getable health and life;  to protect intellectual 
property;  or in relation to the products or  services of handicapped pe rsons, of philanthropic 
institutions or of prison labour.  Ar ticle 13.15 prohibits the disclosure of confidential information that 
could prejudice the legitimate commercial interests of a person or fair competition among suppliers, 
and that could impede the implementation of laws or be contrary to public interest. 
178. Each Party shall designate an enquiry point in its  territory to deal with issues related to the 
implementation of the Chapter's provisions, including:   bilateral cooperation in the use of electronic 
communications;  exchange of information;  and ex amination of possible extension of the Chapter's 
coverage (Article 13.18). 
9. Other 
(a) Electronic Commerce 
179. Under Chapter 12, the Parties recognize the importance of electronic commerce for the 
economic growth (Article 12.1.1) and agree not to apply customs duties to digital products of a Party 
(Article 12.3.1).76  However, the Parties are not prevented from imposing, directly or indirectly, 
internal duties on digital products in a manner consistent with the Agreement's provisions 
(Article 12.1.2).  Article 12.2 clarifies that m easures related to the supply of a service through 
electronic means are subject to the provisions of Chapter 10 (Cross-border Trade in Services), 
including reservations or non-conforming measure set therein. 
180. Article 12.4 provides for non-discrimination with regard to:  (a) a digital product that is 
created, produced, published, stored, transmitted, cont racted, commissioned, or made available for the 
                                                      
75 The circumstances are listed in Article 13.9.2. 
76 Article 12.8 defines "digital products" as computer software, text, video, images, audio recordings, 
and any other product that is codified and transmitted el ectronically, regardless of whether the Party consider 
such a product as a good or a service in accordance with its domestic law.  For greater certainty, digital products do not include digital representations of financial inst ruments, including money.  Such definition is without 
detriment to WTO negotiations on the definition of digital products as good or services. WT/REG272/1 
Page 58  
 
  first time, on commercial terms, in the territory of a Party;  or (b) an author, interpreter, producer, 
manager, or supplier of digital produc ts that is a person of a Party.
 77  Article 12.6 protects consumers 
from fraudulent or deceptive commercial practices in electronic commerce.  Article 12.7 prohibits the 
adoption or maintenance of legislation on electronic certification that would impede the Parties from proving, before judicial or administrative tribunals, that the electronic transaction complies with any 
legal requirements on certification. 
181. Under Article 12.5 the Parties endeavour to cooperate to overcome obstacles faced by 
medium and small enterprises in the use of electr onic commerce, share information and expertise on 
laws and regulations, preserve the cross-border flow  of information, encourage private sector self 
regulation, and participate actively in internationa l forums to promote the development of electronic 
commerce. 
(b) Labour 
182. Chapter 17 deals with labour standards.  The Pa rties reaffirm their rights and obligations as 
members of the International Labour Organiza tion (ILO) and under the ILO Declaration on 
Fundamental Principles and Rights at Work of 1998 (Article 17.1).  The Parties also commit to apply 
their domestic labour laws in a manner consistent with interna tionally recognized labour rights
78 and 
agree that it is inappropriate to weaken or reduce the level of labour protection in their domestic laws 
to encourage trade or investment (Article 17.2). 
183. Article 17.3 provides a mechanism for bilate ral cooperation in labour rights.  Under 
Article 17.4, each Party shall establish a contact point at the Ministry of Labour or of Social Protection, as appropriate, which sh all maintain contact with the other Party and the society and deal 
with any matter related to the Chapter.
79  The Parties shall meet periodically, at Senior Official level, 
to identify possible areas of cooperation, review the implementation, operation, and results of the 
Agreement, inform the Commission about their work  and results, and deal with any issues that may 
arise (Article 17.4.2).  Where a matter related to the application of the Chapter arises, a Party may initiate consultations, by submitting a written request  to the contact point, and shall endeavour to 
resolve the issue through dialogue and cooperation.  Unresolved matters can be taken to the meeting 
of Senior Officials. 
(c) Environment 
184. In Chapter 18 on the environment, the Parties r eaffirm their sovereignty over their natural 
resources and reiterate the right to establish thei r own levels of environmental protection, their 
development priorities, and to adopt or modify acco rdingly their environmental laws and policies.  
Each Party shall ensure that its domestic polici es and laws promote and establish a high level of 
environmental protection and sustainable conservatio n and use of natural resources, and comply with 
the relevant multilateral environmen tal agreements.  The Parties recognize that is inappropriate to 
                                                     
 
77 Footnote 2 to Article 12.4(1) specifies that the non-discrimination principle applies also if one or 
more of the activities listed in paragraph (a) occur outside the territory of a Party, and if one or more persons 
listed in paragraph (b) are persons of a Party or of a non-party. 
78 Article 17.5 defines as domestic labour law all laws and regulations of a Party that are directly 
related to the following internationally recognized labour rights:  freedom of association;  right to collective 
bargaining;  prohibition of all forms of forced labour;  minimum working age for children and elimination of the 
worst forms of child labour;  non- discrimination in employment;  favour able working conditions, wages or 
health and safety standards. 
79 The Parties indicated that the contact points were  designated at the first meeting of the Free Trade 
Commission in Chile on 2 July 2009.  They are, for Co lombia, the Office of the De puty Minister for Labour 
Affairs of the Ministry of Social We lfare;  and for Chile, the International Relations Office of the Ministry of 
Labour and Social Welfare, with, as a linkage point, the General Directorate of International Economic Affairs.  WT/REG272/1 
 Page 59 
 
 
  encourage trade or investment by weakening or  reducing the protection afforded by domestic 
environmental laws, and to use their policies, laws, regulations and environmental management 
measures as an obstacle to trade (Article 18.2). 
185. The Parties agree to cooperate in  several areas listed in Article 18.3.  To this end, they 
established the following coordinators:  for Colombia, the Ministry of Environment, Housing, and 
Territorial Development (Vice-Ministry of Environment), and for Chile, the National Commission for 
Environment.  The Coordinators shall deal with  cooperation activities and s ubmit periodic reports to 
the national contact points which are established under Article 18.4.80 
186. If any matter arises on the interpretation or appli cation of Chapter 18, the Parties shall seek a 
mutually agreed solution.  Each Party may also ask  for consultations with the other Party through the 
National Contact Point;  the latter shall identify the appropriate institution or officer responsible for 
the matter and, where necessary, facilitate communication between the Parties (Article 18.5). 
(d) Cooperation 
187. The objective of Chapter 19 is to promote coope ration between the Parties in the fields of 
economy (Article 19.3), innovation, research a nd development (Article 19.4), and energy 
(Article 19.5).  The provisions of Chapter 19 shall complement the cooperation activities set out in the 
"Basic Convention on Technical and Scientific C ooperation between the Republic of Colombia and 
the Republic of Chile" (Basic Convention on Coopera tion), signed on 16 July 1991 (Article 19.2.3).  
The Parties may also conclude future inter ins titutional agreements on specific sectors for cooperation 
as a complement to the Basic Convention on Coopera tion (Article 19.6), as well as carry out projects 
of mutual interests with third countries (Article  19.7).  Financial and human resources for such 
cooperation activities shall be provided by the Parties,  to the extent possible, and by international 
agencies or third countries (Article 19.8). 
188. For cooperation in the energy sector, the Pa rties established the "Bi-National Technical 
Committee", comprising:  the Ministry of Mining and Energy and the Ministry of Trade, Industry and 
Tourism of Colombia;  and the National Commissi on for Energy and the General Directorate of 
International Economic Affairs of Chile.  The Co mmittee's functions are to design, supervise, 
coordinate, and evaluate coopera tion activities in the energy sector, and inform the Commission 
accordingly.  The financial resources necessary for cooperation activities shall be provided by 
                                                      
80 The Parties indicated that the re levant contact points are:  for Co lombia, the Office of the Deputy 
Minister for the Environment of the Ministry of Environment, Housing, and Territorial Development, and for Chile, the Department of Trade and Sustainable Development of the General Directorate of International 
Economic Affairs of the Ministry of External Relations .  Within the framework of the third meeting of the 
Agreement's Free Trade Commission, held in Chile on 6 May 2010, a Working Group on the Environment was formed which, as well as updating the names of the coordinators and the national contact points, agreed on an 
initial work programme. WT/REG272/1 
Page 60  
 
  interested competent authorities or be shared between  the Parties for issues of mutual interest, unless 
otherwise agreed (Article 19.5).
81 
189. The Mixed Commission established under the Basic Convention on Cooperation is also 
responsible for the implementation of the Agre ement's provisions;  issuing recommendations on 
cooperation activities covered by the Chapter;  info rming the Commission of any decisions related to 
the Chapter;  revising, through periodic reports from each Party, the implementation of the Chapter 
and its accomplishment of the objectives set therein.  To this end, the Mixed Commission may include, among its members, representatives of the Ministry of Trade, Industry and Tourism of Colombia, or its designee, and of the General Direct orate of International Economic Affairs of Chile 
(Article 19.9). 
                                                     
 
81 The Parties indicated that, as at August 20 10, no Bi-National Technical Committee has been 
appointed.  WT/REG272/1 
 Page 61 
 
 
  ANNEX I 
 
Indicators of tariff and trade liberalization under the Agreement  
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by Colombia an d Chile is shown in Table AI.1 (Colombia) and 
AI.2 (Chile) below, by total products, agricultu ral products (WTO defin ition) and non-agricultural 
products. 
Table AI.1 
Colombia:  Indicators of MFN tariff rates a nd preferential rates for imports from Chile 
ALL PRODUCTS Agricultural productsa 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 2009 12.2 12.7 3.7 17.9 17.9 0.0 11.3 11.8 4.2 
Chile 2009 0.4 14.8 97.5 2.7 15.0 81.8 0.0 6.9 99.9 
 2010 0.2 9.8 97.5 1.8 9.9 81.8 0.0 4.5 99.9 
 2011 0.1 5.0 97.5 0.9 5.1 81.8 0.0 2.3 99.9 
 2012 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a WTO Definition. 
Note: Tariff lines subject to in-quota rates are excluded from the computation. 
Source : WTO Secretariat estimates based on data provided by Colombia.  
2. In 2009, Colombia's duty-free lines accounted fo r 3.7 per cent of the total.  The overall 
average applied MFN rate was 12.2 per cent.  MFN tariffs on agricultural products were higher than 
for non-agricultural products, 17.9 per cent on agricultural products and 11.3 per cent on 
non-agricultural products.  Under th e Agreement, Chile's exporters enjoy an absolute margin of 
preference of 15.2 per cent for agricultural goods, vis-à-vis  the prevailing average MFN tariff in 2009, 
and 11.3 per cent for non-agricultural goods.  The to tal share of duty-free lines applicable to imports 
from Chile also increased to 97.5 per cent.  At the end of the implementation period, in 2012, 
100 per cent of the tariff is due to become duty-free under the Agreement. 
Table AI.2 
Chile:  Indicators of MFN tariff rates and preferential rates for imports from Colombia 
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 2009 6.0 6.0 0.5 6.1 6.1 0.0 6.0 6.0 0.5 
Colombia 2009 0.1 3.3 98.3 0.4 3.3 87.8 0.0 0.0 100.0 
 2010 0.0 2.2 98.3 0.3 2.2 87.8 0.0 0.0 100.0 
 2011 0.0 1.2 98.3 0.1 1.2 87.8 0.0 0.0 100.0 
 2012 0.0 3.0 100.0 0.0 3.0 99.8 0.0 0.0 100.0 
a WTO Definition. 
Note: Tariff lines subject to in-quota rates are excluded from th e computation;  for the calculation of averages, specific rate s are 
excluded and the ad valorem  part of alternate rates are included. 
Source : WTO Secretariat estimates based on data provided by Chile.  WT/REG272/1 
Page 62  
 
   
3. In 2009, Chile's duty-free lines accounted for 0.5 per cent of the total.  The overall average 
applied MFN rate was 6 per cent.  MFN tariffs on agricultural products were close to those for 
non-agricultural products, with the average applied tariff 6.1 per cent on agricultural products and 
6 per cent on non-agricultural products.  Under the Agreement, Colombia's exporters enjoy an 
absolute margin of preference of 5.7 per cent for agricultural goods, vis-à-vis  the prevailing average 
MFN tariff in 2009, and 6 per cent for non-agricultura l goods.  The share of duty-free lines applicable 
to imports from Colombia also increased to 98.3 per cent although liberalization is lower for 
agriculture, at 87.8 per cent of tariff lines than for non-agriculture at 100 per cent.  At the end of the 
implementation period, in 2012, 99.8 per cent of agricultural lines and 100 per cent of 
non-agricultural lines are due to beco me duty-free under the Agreement. 
4. Table AI.3 shows the market access conditions in Colombia for Chile's top 25 exports, which 
in 2006-2008 accounted for 76.4 per cent of its globa l exports.  In 2009, when the Agreement entered 
into force, 59 lines became duty-free.  Almost half  of them related to light  oils and preparations 
(HS 2710.11), and petroleum oils a nd oils obtained from bituminous minerals (HS 2709.00).  At the 
end of the implementation period, in 2012, one more tariff line  frozen pork meat (HS 0203.29)  is to 
be liberalized. 
Table AI.3 
Colombia:  Market access opportunities und er the Agreement for Chile's top 25 exports 
Chile's top export products in 2006-2008  Access Conditions to Colo mbia's import markets  
Duty-free in 
HS number and description of the product  Share in 
global exports 
(%) Average 2009 
MFN applied 
rate 
(%) 2009 2012 
740311 -- Cathodes and sections  of cathodes 29.4 5.0 1  
260300 Copper ores and concentrates. 19.8 5.0 1  
740200 Unrefined copper;  c opper anodes for electrolytic 
refining. 4.3 5.0 3  
261310 - Molybdenum ores and concentrates, roasted 2.7 5.0 1  
470321 -- Coniferous 1.7 10.0 1  
220421 -- Wine other than sparkling wine of fresh grapes, 
including fortified;  grape must with fermentation 
prevented or arrested by the addition of alcohol, in 
containers holding 2 litres or less 1.6 20.0 1  
261390 - Molybdenum ores & concentrates, other than 
roasted 1.4 5.0 1  
080610 - Grapes, fresh 1.3 15.0 1  
470329 -- Non-coniferous 1.3 10.0 1  
740319 -- Unwrought products of refined copper 
(excluding HS subheadings 740311 to 740313) 1.3 5.0 1  
440710 - Wood sawn or chipped length wise, sliced or 
peeled, whether or not planed, sanded or 
end-jointed, of a thickness >6mm, coniferous 1.2 7.5 2  
720270 - Ferromolybdenum 1.1 5.0 1  
710812 -- Other unwrought forms 1.0 10.0 1  
271011 -- Light oils and preparations 0.9 11.5 10  
290511 -- Methanol (methyl alcohol) 0.9 5.0 1  
080810 - Apples 0.8 15.0 1  
230120 - Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 0.8 15.0 3  
740400 Copper waste and scrap. 0.8 5.0 2  
030419 -- Fish fillets and other fish meat (excluding 
HS subheadings 030411 to 030412, whether or not minced), fresh or chilled 0.7 20.0 2   WT/REG272/1 
 Page 63 
 
 
  Chile's top export products in 2006-2008  Access Conditions to Colo mbia's import markets  
Duty-free in 
HS number and description of the product  Share in 
global exports 
(%) Average 2009 
MFN applied 
rate 
(%) 2009 2012 
030429 -- Fish fillets and other fish meat (excluding HS 
subheadings 030421 to 030492, whether or not 
minced), frozen fillets 0.7 20.0 3  
740811 -- Of which the maximum cross-sectional 
dimension exceeds 6 mm. 0.7 5.0 1  
020329 -- Meat of swine (excluding carcasses or 
half-carcasses or hams or shoulders and cuts 
thereof), frozen 0.5 20.0  1 
271019 -- Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewher e specified or included, 
containing by weight 70% or more of petroleum 
oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 0.5 9.1 17  
280120 - Iodine 0.5 5.0 1  
710691 -- Silver (including silver plated with gold or 
platinum), unwrought 0.5 10.0 2  
Total of above 76.4  59 1 
Source : WTO estimates based on data provided by Colombia and UNSD, Comtrade database.  
5. Table AI.4 shows the market access conditions in Chile for Colombia's top 25 exports, which 
in 2006-2008 accounted for 65.9 per cent of its globa l exports.  In 2009, when the Agreement entered 
into force, 79 lines became duty-free.  Almost one-thi rd of them related to other petroleum oils, and 
light oils and preparations.  Under the Agreement, four lines remain subject to duties;  three lines 
concern sugar (HS 1701.99) and one line carcasse s and half carcasses of veal (HS 0201.10). 
Table AI.4 
Chile:  Market access opportunities under th e agreement for Colombia's top 25 exports 
Colombia's top export products in 2006-2008  Access Conditions to Chile's import markets  
Number of duty-free lines in 
HS number and description of the product  Share in 
global exports 
(%) Average 2009 
MFN applied 
rate 
(%) 2009 2012 
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 21.1 6.0 2 0 
270112 -- Bituminous coal 11.6 6.0 3 0 
090111 -- Not decaffeinated 5.5 6.0 1 0 
271019 -- Other 4.8 6.0 13 0 
720260 - Ferro-nickel 4.0 6.0 1 0 
271011 -- Light oils and preparations 2.0 6.0 11 0 
080300 Bananas, including plantains,  fresh or dried. 1.9 6.0 1 0 
870323 -- Of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 1.6 6.0 6 0 
710812 -- Other unwrought forms 1.5 6.0 1 0 
711291 -- Of gold, including metal clad with gold but 
excluding sweepings containing othe r precious metals 1.3 6.0 1 0 
060319 -- Other 1.2 6.0 7 0 
020110 - Carcasses and half-carcasses 1.0 6.0  1 
060311 -- Roses 0.9 6.0 1 0 
270400 Coke and semi-coke of coal, of lignite or of peat, 
whether or not agglomerated;  retort carbon. 0.8 6.0 1 0 WT/REG272/1 
Page 64  
 
  Colombia's top export products in 2006-2008  Access Conditions to Chile's import markets  
Number of duty-free lines in 
HS number and description of the product  Share in 
global exports 
(%) Average 2009 
MFN applied 
rate 
(%) 2009 2012 
740400 Copper waste and scrap. 0.8 6.0 5 0 
060312 -- Carnations 0.7 6.0 1 0 
390410 - Poly(vinyl chloride), not mixed with any other 
substances 0.7 6.0 3 0 
151110 - Crude oil 0.6 6.0 1 0 
170199a -- Other 0.6 6.0  3 
170490 - Other 0.6 6.0 7 0 
300490 - Other 0.6 6.0 2 0 
390210 - Polypropylene 0.6 6.0 1 0 
481840 - Sanitary towels and tampons, napkins and napkin 
liners for babies and similar sanitary articles 0.6 6.0 3 0 
620342 -- Of cotton 0.6 6.0 5 0 
210111 -- Extracts, essences and concentrates 0.5 6.0 2 0 
Total of above 65.9  79 4 
a For the calculation of averages, sp ecific rates are excluded and the ad valorem  part of alternate rates are included. 
Source : WTO estimates based on data provided by  Chile and UNSD, Comtrade database.  
  WT/REG272/1 
 Page 65 
 
 
  ANNEX II 
 
Products subject to the Andean Price Band System for imports into Colombia in 2010  
  
Table AII.1 
Products subject to the Andean Price Band System 
HS Code Description 
0203110000 Swine, carcasses and half-carcasses 
0203120000 Hams, shoulders and cuts thereof, with bone in 
0203190000 Other 
0203210000 Carcasses and half-carcasses 
0203220000 Hams, shoulders and cuts thereof, with bone in 
0203290000 Other 
0207110000 Fowls, not cut in pieces, fresh or chilled 
0207120000 Not cut in pieces, frozen 
0207130000 Cuts and offa l, fresh or chilled 
0207140000 Cuts and offal, frozen 
0207240000 Turkeys, not cut in pieces, fresh or chilled 
0207250000 Not cut in pieces, frozen 
0207260000 Cuts and offa l, fresh or chilled 
0207270000 Cuts and offal, frozen 
0207320000 Ducks, geese or guinea fowls,  not cut in pieces, fresh or chilled 
0207330000 Not cut in pieces, frozen 
0207340000 Fatty livers of ducks, gees e or guinea, fresh or chilled 
0207350000 Other, fr esh or chilled. 
0207360000 Other, frozen 
0210120000 Bellies (streaky) and cuts thereof 
0210190000 Other (of domestic swine) 
0401100000 Of a fat content, by weight, not exceeding 1% 
0401200000 Of a fat content, by weight, exceeding 1% but not exceeding 6% 
0401300000 Of a fat content, by weight, exceeding 6% 
0402101000 In packs of a net content not exceeding 2.5 kg 
0402109000 Other 
0402211100 In packs of a net content not exceeding 2.5 kg 
0402211900 Other 
0402219100 In packs of a net content not exceeding 2.5 kg 
0402219900 Other 
0402291100 In packs of a net content not exceeding 2.5 kg 
0402291900 Other 
0402299100 In packs of a net content not exceeding 2.5 kg 
0402299900 Other 
0402911000 Evaporated milk in airtight containers 
0402919000 Other 
0402999000 Other 
0404109000 Milk whey (other) 
0404900000 Milk whey (other) 
0405100000 Butter 
0405200000 Dairy spreads 
0405902000 Anhydrous milk fat ("butter oil") 
0405909000 Other 
0406300000 Processed cheese, not grated or powdered 
0406904000 Of a fat content by weight in the dry matter not exceeding 50% 
0406905000 Of a fat content by weight in the dry matter exceeding 50% but not exceeding 56% WT/REG272/1 
Page 66  
 
  HS Code Description 
0406906000 Of a fat content by weight in the dry matter exceeding 56% but not exceeding 69% 
0406909000 Other 
1001109000 Durum wheat (other) 
1001902010 Wheat for sowing 
1001902090 Wheat (other) 
1001903000 Wheat and meslin 
1003009010 For malting purposes 
1003009090 Other 
1005901100 Yellow dent corn 
1005901200 White dent corn 
1005903000 Giant white maize (" zea mays amilacea cv gigante ") 
1005904000 Brown corn (" zea mays amilacea cv. Morado ") 
1005909000 Corn (other) 
1006109000 Rice in the husk (other) 
1006200000 Husked rice, cargo or brown rice 
1006300090 Semi-milled or wholly milled rice, whether or not polished or glazed 
1006400000 Broken rice 
1007009000 Grain sorghum 
1101000000 Wheat flour or meslin 
1102200000 Maize (corn) flour 
1103110000 Groats and meal of wheat 
1107100000 Malt of barley or other cereals, not roasted 
1107200000 Malt of barley or other cereals, roasted 
1108110000 Wheat starch 
1108120000 Corn (maize) starch 
1108190000 Starches (other) 
1201009000 Soya beans, whether or not broken (other) 
1202109000 Groundnuts, not roasted or othe rwise cooked, in shell (other) 
1202200000 Groundnuts, shelled, whether or not broken 
1205109000 Low erucic acid rape or colza seeds (other) 
1205909000 Rape or colza seeds (other) 
1206009000 Sunflower seeds, whether or not broken (other) 
1207409000 Sesame seeds, whether or not broken (other) 
1207999100 Karité seeds 
1207999900 Other oil seeds and oleaginous fruits, whether or not broken 
1208100000 Flour of beans and soya beans 
1208900000 Flours and meals of oil seeds or oleaginous fruits (other) 
1501001000 Pig fat (including lard) 
1501003000 Poultry fat 
1502001100 Tallow and fats, crude and denatured 
1502001900 Tallow and fats, crude (other) 
1502009000 Fats of bovine animals, sheep or goats, crude or melted (other) 
1503000000 Lard stearin, lard oil, oleostearin, oleo-oil a nd tallow oil, not emulsified or mixed or otherwise. 
1506001000 Neat's-foot oil 
1506009000 Other animal fats and oil 
1507100000 Crude soya-bean oil, whether or not degummed 
1507901000 Refined soya-oil, cont aining added denaturalizing substances not exceeding 1% 
1507909000 Soya oils (other) 
1508100000 Crude groundnut oil 
1508900000 Groundnut oil (other) 
1511100000 Crude palm oil 
1511900000 Palm oil (other) 
1512111000 Crude sunflower-seed oil  WT/REG272/1 
 Page 67 
 
 
  HS Code Description 
1512112000 Crude safflower-seed oil 
1512191000 Sunflower-seed oil (other) 
1512192000 Safflower-seed oil (other) 
1512210000 Crude cotton-seed oil, whether or not gossypol has been removed 
1512290000 Cotton-seed oil (other) 
1513110000 Crude coconut oil 
1513190000 Coconut oil (other) 
1513211000 Crude palm kernel oil 
1513291000 Palm kernel oil (other) 
1514110000 Low erucic acid rape or colza oil and its fractions, crude 
1514190000 Low erucic acid rape or colza oil and its fractions (other) 
1514910000 Rape or colza oil, crude (other) 
1514990000 Rape or colza oil (other) 
1515210000 Maize (corn) oil, crude 
1515290000 Maize (corn) oil (other) 
1515300000 Castor oil and its fractions 
1515500000 Sesame oil and its fractions 
1515900090 Vegetables fats and oils (other) 
1516200000 Vegetable fats and oils and their fractions 
1517100000 Margarine, excluding liquid margarine 
1517900000 Other mixture of animal and vegetable fats and oils 
1518001000 Linoxyn 
1518009000 Animal and vegetabl e fats and oils (other) 
1601000000 Sausages and similar products, of  meat, meat offal or blood;  food preparations based on these products. 
1602311000 Turkey, cut in pieces, seasoned and frozen 
1602321000 Fowl, cut in pieces, seasoned and frozen 
1602391000 Other pieces, seasoned and frozen 
1602410000 Hams and cuts thereof 
1602420000 Shoulders and cuts thereof 
1701119000 Cane sugar, raw (other) 
1701120000 Beet sugar, raw 
1701910000 Other cane sugar, containing a dded flavouring or colouring matter 
1701991000 Chemically pure sucrose 
1701999000 Cane or beet sugar (other) 
1702302000 Glucose syrup 
1702309000 Glucose and glucose syrup (other) 
1702401000 Glucose 
1702402000 Glucose syrup 
1702600000 Fructose and fructose syrup, with fructose content in the dry state exceed ing 50% by weight, ex cluding invert sugar 
1702902000 Caramelized sugar and molasses 
1702903000 Sugar containing adde d flavouring or colouring 
1702904000 Syrups (other) 
1702909000 Other syrups, including invert s ugar, and other sugar and sugar syrup 
1703100000 Cane molasses 
1703900000 Molasses resulting from the extr action or refining of sugar (other) 
1902190000 Pasta, whether or not cooked or stuffed or otherwise prepared (other) 
2301201100 Flour of fish, of a fat content by weight exceeding 2% 
2301201900 Flour of fish, of a fat content by weight not exceeding 2% 
2302100000 Bran, sharps and other residues deri ved from the sifting of maize (corn) 
2302300000 Bran, sharps and other residues derived from the sifting of wheat 
2302400000 Bran, sharps and other residues de rived from the sifting of other cereals 
2304000000 Oilcake and other solid residues, whethe r or not ground or in the form of pellets,  resulting from the extraction of 
soya-bean oil WT/REG272/1 
Page 68  
 
  HS Code Description 
2306100000 Oilcake and other solid residues resulti ng from the extraction of cotton-seed oil 
2306300000 Oilcake and other solid residues resulti ng from the extraction of sunflower-seed oil 
2306900000 Oilcake and other solid residue s resulting from the extraction of vegetable fats and oils (other) 
2308009000 Vegetable waste, vege table residues and by-products  of a kind used in animal feeding (other) 
2309109000 Dog or cat food, put up for retail sale 
2309901000 Preparations for feeding,  containing molasses and sugar 
2309909000 Preparation for feeding (other) 
3505100000 Dextrins and other modified starches 
3505200000 Glues 
3823110000 Stearic acid 
3823120000 Oleic acid 
3823190000 Industrial monocarboxylic fatty acids (other) 
Source : Data provided by Colombia. 
__________