WORLD TRADE  
ORGANIZATION   
WT/REG293/1 
13 December 2011 
 (11-6453) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
Turkey and Chile 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the consideration of the Free Trade Agreement between Turkey 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 proce dures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Rohini Acharya 
(tel:  +41 22 739 5874).  WT/REG293/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 5  
A.  BACKGROUND INFORMATION  5  
III.  PROVISIONS ON TRADE IN GOODS 6  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  6  
1.  General provisions 6  
2.  Liberalization of trade and tariff lines 7  
3.  Liberalization schedule 8  
(a)  Liberalization of tariffs and imports 8  
(b)  Turkey's tariff liberalization 9  
(c)  Chile's tariff liberalization 10  
4.  Tariff rate quotas 12  
B.  RULES OF ORIGIN  13  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  16  
D.  REGULATORY PROVISIONS OF THE AGREEMENT  16  
1.  Standards 16  
(a)  Sanitary and phytosanitary measures 16  
(b)  Technical barriers to trade 16  
2.  Safeguard mechanisms 17  
(a)  General safeguards 17  
(b)  Other 17  
3.  Anti-dumping and countervailing measures 18  
4.  Subsidies and State-aid 18  
5.  Other regulations 18  
E.  SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  18  
1.  Agricultural, processed agricu lture and fishery products 18  
IV.  GENERAL PROVISIONS OF THE AGREEMENT 19  
A.  TRANSPARENCY  19  
B.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  19  
C.  EXCEPTIONS  19  
D.  ACCESSION AND TERMINATION  20  
E.  INSTITUTIONAL FRAMEWORK  20  
F.  DISPUTE SETTLEMENT  21  
G.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  25  
H.  GOVERNMENT PROCUREMENT  26  
I.  INTELLECTUAL PROPERTY RIGHTS  26  
J.  OTHER  27 
(a)  Cooperation 27  
ANNEX I 29 
ANNEX II 32 
 
  WT/REG293/1 
 Page 1 
 
 
   
 
Key Facts 
 
Parties to the Agreement:   Turkey and Chile 
 
Date of Signature:  14 July 2009 
 Date of Entry into Force:  1 March 2011 (goods and services) 
 Date of Notification:   25 February 2011 
 
 
 I. TRADE ENVIRONMENT 
1. In 2009 Turkey ranked as the world's 22
nd largest exporter (excluding intra-EU trade) and the 
16th largest importer.1  Chile ranked 28th and 30th respectively in world exports and imports of 
merchandise.2  The structure of merchandise trade is considerably different with manufactures 
forming the largest group of commodities exporte d and imported by Turkey (76.5% and 63.5% 
respectively of total merchandise exports and impor ts) and while manufactures also form the main 
group of commodities imported by Chile (58.9%), fu els and mining products play an important role 
especially in its exports (56.7%).  Bilateral merc handise trade is not significant although it has been 
rising in recent years.  In 2009 Chile was Turkey's 83rd and 44th largest export destination and import 
source, while Turkey was Chile's 22nd and 36th largest export and import destination respectively.3 
2. Charts I.1 and I.2 show recent trends in the Par ties' merchandise trade.  Turkey's trade deficit 
with the world as well as with Chile has widene d significantly especially up to 2007;  while global 
exports also grew steadily during this period, exports to Chile app ear to have remained stagnant.  
Since 2007 there have been signs that the deficit with  Chile has narrowed, both due to an increase in 
exports and a fall in imports especially between 2007 and 2009.  Chile on the other hand has a surplus 
in its merchandise trade with the world and with Tu rkey. There appears to be a significant discrepancy 
in the data reported by the Parties.  The Parti es indicate that possible reasons for the discrepancy 
include a difference in figures on petroleum imports through the Ceyhan Port in Turkey which are 
reported in Chile's imports from Turkey but not in Turkish exports to Chile.  Another reason could be 
the use of data based on CIF and FOB in the Parties.4 
                                                      
1 In 2009 Turkey's merchandise exports and imports were valued at $102,143 million and 
$140,928 million respectively (Trade Profiles, WTO Statistics). 
2 Chile's merchandise exports and imports had a value of $53,735 million and $42,427 million in 2009 
respectively (Trade Profiles, WTO Statistics). 
3 Rankings based on trade data reported to UNSD Comtrade and exclude intra-EU trade. 
4 CIF data includes freight and insurance costs which are excluded from FOB (free on board) data. WT/REG293/1 
Page 2  
 
  0.00.51.01.52.02.53.0
050100150200250
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.1 - Turkey: Merchandise import s from and exports to the world and 
Chile, 2000-2010
Source : UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
  WT/REG293/1 
 Page 3 
 
 
  0.00.51.01.52.02.53.0
0510152025303540455055606570
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.2 - Chile: Merchandise imports from and exports to the world and 
Turkey, 2000-2010
Source : UNSD, Comtrade database.Imports from Turkey
Exports to TurkeyTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
3. Chart I.3 shows the composition of global and bilateral trade between the Parties during the 
three year period preceding the entry into force of the Agreement by HS Sect ion.  While Turkey's 
global exports are quite diversified, with textiles,  base metals, vehicles and machinery accounting for 
63.6% of its exports, imports by Chile from Turkey  are dominated by minerals (accounting for 71.4% 
of its imports from Turkey) and base metals (15.6% ).  Chile's global imports are accounted for by 
mainly minerals, machinery, vehicles and base metals  (70.4% of the total).  Of Chile's two major 
exports, base metals and minerals which account fo r 68.8% of its global exports, Turkey's imports 
from Chile are concentrated in base metals whic h account for 81.7% of its imports from Chile.  
Turkey main imports globally are minerals, machinery, base metals, chemicals and vehicles which account for 74.5% of total imports. WT/REG293/1 
Page 4  
 
  Chart I.3
Turkey and Chile: product composition of merchandise trad e, annual average 
(2008-2010)
Turkey's imports from Chile Chile's imports from Turkey
Source:  UNSD, Comtrade database.Per cent
Total:  US$ 279 million Total:  US$ 328 million
Total:  US$ 176 billion Total: US$ 52 billion
Total:  US$ 116 billion Total:  US$ 62 billionTurkey's global exportsChile's global exportsTurkey's global imports Chile's global importsOther
2.0
Base metals
81.7Minerals
71.4Other
4.4
Other 
7.6
Minerals
25.3
Textiles 3.6Other 
10.1
Base metals
14.7Vehicles 8.6Minerals
22.8
Plastics 6.1
Base metals 
5.8Textiles 5.7
Plastics 4.5
Other 
5.9Other 
5.7
Vegetables 4.6Plastics 4.5
Machinery 14.3Minerals 7.4
Vegetables 7.1Wood pulp 4.8
Minerals 22.3Prepared foods 3.1Chemicals 1.8
Chemicals 
9.2
Vehicles 
14.6Textiles
18.4
Precious stones 4.3Prepared foods 3.8Chemicals 3.3Machinery 3.6
Base metals 
15.6
Miscellaneous 1.5
Machinery 
21.0
Vehicles 10.0
Base metals
39.5
Live animals 5.8Prepared foods 5.8Machinery 
19.2Precious stones 2.0
Base metals 
16.3Chemicals 8.3Vegetables 6.4Chemicals 4.3
Wood pulp 5.5
Articles of stone, plaster, cement 2.4
Articles of wood 2.9
Chemicals 4.0Precious stones 2.0Vegetables 2.1Vehicles 3.2
Optical 1.5
Wood pulp 1.7Optical 2.0 Live animals 1.5
Vegetables 2.0
 
  WT/REG293/1 
 Page 5 
 
 
  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
4. The Free Trade Agreement between the Republic  of Turkey and the Republic of Chile 
(hereinafter "the Agreement") was signed on 14 July  2009 and entered into force on 1 March 2011.  It 
was notified to the WTO Under Articles XXIV :7(a) of GATT 1994 and the Understanding on the 
Interpretation of Article XXIV on 25 February 2011.  The text and annexes of the Agreement are 
available on the Parties' websites: 
 Turkey: 
http://www.ekonomi.gov.tr/upload/D99C2FB0-D8D3- 8566-45208CC361213BEF/SILI% 20STA%20INGILIZCE.zip 
 Chile: 
 http://www.direcon.cl  
5. The Agreement is of indefinite duration and c onsists of 66 Chapters and four Annexes which 
form an integral part of the Agreement: 
Box II.1:  Structure of the Agreement 
Preamble  
Title I 
 Initial Provisions 
Title II 
 Market Access for Goods 
Chapter I Common Provisions 
Chapter II Elimination of Customs Duties 
Section I Industrial products 
Section II 
 Agricultural, processed agri cultural and fishery products 
Title III 
 Other Trade Related Provisions 
Chapter I Sanitary and Phytosanitary Measures 
Chapter II Technical Regulations, Standard s and Conformity Assessment Procedures 
Chapter III Trade Defence 
Chapter IV 
 Intellectual Property 
Title IV 
 Co-operation 
Title V 
 Dispute Settlement 
Title VI 
 Transparency, Institutional Provisions, Exceptions and Final Provisions 
Chapter I Transparency 
Chapter II Institutional Provisions 
Chapter III Exceptions 
Chapter IV Final Provisions 
 
Annexes  
Annex I List of products referred to in Articles 16 and 18 
Annex II Chilean Tariff Concessions for In dustrial Products Originating in Turkey 
Annex III Industrial Products not subject to concessions 
Annex IV (Referred to in Article 19) 
Appendix I to Annex IV  
Appendix II to Annex IV  WT/REG293/1 
Page 6  
 
  Annex V Definition of the concept of originating products and methods of 
administrative co-operation 
Appendix I to Annex V Introductory notes to the list in Appendix II 
Appendix II to Annex V List of working or processing required to be carried out on non-originating 
materials in order for the product manufactured to obtain originating status. 
Appendix III to Annex V Specimen of movement certificate EUR.1 and Application for a movement 
certificate EUR.1 
Appendix IV to Annex V Invoice Declaration 
Appendix V to Annex V Explanatory notes concerning Annex V--Definition of the Concept of 
originating products and methods of administrative co-operation--to the 
Turkey-Chile FTA 
Appendix VI to Annex V   Joint Declaration 
Source: The Agreement.   
 
6. The goals of the Agreement are:  to increase  and enhance economic co -operation between the 
Parties and raise the living standards of their popula tions;  to promote the expansion of trade through 
the harmonious development of economic relations between the Parties;  to gradually eliminate 
difficulties and restrictions on trade in goods;  to contribute by the removal of barriers to trade, to the harmonious development and expansion of world trade;  and to provide fair conditions of competition 
in trade between the Parties (Article 2).  The Pa rties may agree in writing any modification of or 
addition to the Agreement.  Any such modification or addition, once agreed and approved in accordance with the necess ary legal procedures of each Party, it sha ll constitute an integral part of the 
Agreement and will enter into force on the first day of the second month following the date on which 
the Parties exchange written notification that such  procedures have been completed or any other 
period as agreed (Article 63). 
7. No transition period for implementing the Agreem ent is explicitly stated, but Chile will 
complete its tariff reduction implementation within a period of six years following the date of entry 
into force of the Agreement (1 January 2017).   
8. The Agreement includes an evolutionary cl ause in Article 61 whereby the Parties may 
mutually agree to extend the Agreement with the aim of broadening and supplementing its scope in 
accordance with their respective legi slation, by concluding agreements in specific sectors or activities 
in light of experience gained from the implementation of the Agreement.  In any case and unless otherwise agreed, the Parties will commence exploratory talks on trade in services and investment no 
later than two years following the entry into force of  the Agreement.  Accord ing to the Parties such 
negotiations have not yet commenced. 
III. PROVISIONS ON TRADE IN GOODS  
A. I
MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
9. National treatment is provided by the Parties to each other in accordance with Article III of 
the GATT 1994 and its interpretative notes which are incorporated mutatis mutandis  into, and made 
part of, the Agreement (Article 6 of the Agre ement).  Import duty reductions are applied on a 
successive basis to the basic duty.  If after the en try into force of the Agreement, any customs duty 
reduction is applied on an erga omnes  basis, in particular, any tariff reductions resulting from 
WTO negotiations, it shall replace the basic duties und er the Agreement as from the date on which the 
reductions are applied.  Customs duty under the Agre ement refers to any duty or charge imposed in 
connection with the import (or export) of a good, including any surtax or surcharge in connection with 
the import (export).  It does not include any internal taxes, antidumping or countervailing duties and 
fees or other charges (Article 8).  Fees and othe r charges (other than customs duties, charges  WT/REG293/1 
 Page 7 
 
 
  equivalent to an internal tax or other internal ch arges applied consistently with paragraph 2 of GATT 
Article III and antidumping and countervailing duti es) imposed on or in connection with imports 
(or exports) are limited in amount to the approximate  cost of services rendered and do not represent an 
indirect protection to domestic goods or a taxation of imports (or exports) for fiscal purposes. 
10. Except as otherwise provided in the Agreement, Article 13 prohibits the Parties from 
maintaining any import (or export) prohibition or rest riction on goods from the other Party, except in 
accordance with Article XI of the GATT 1994 and its in terpretative notes, which are incorporated into 
and made part of the Agreement mutatis mutandis .  The Parties also bind themselves to abolishing 
existing and not imposing new customs duties on imports or charges having equivalent effect on trade between themselves for products under HS Chap ters 25-97 covered by the Agreement.   
11. Under the Final Provisions of the Agreement, Article 61 permits the Parties to extend the 
Agreement with the aim of broadening and suppl ementing its scope in accordance with their 
respective legislation, by concluding agreements on  specific sectors or activities in the light of the 
experience gained during its implementation.  In addition, unless otherwise agreed, the Parties will 
commence exploratory talks on trade in services and inv estment no later than two years after the entry 
into force of the Agreement. 
2. Liberalization of trade and tariff lines  
12. Goods are classified for the purposes of the Agreement under the Harmonized Commodity 
Description and Coding System (HS).  The basic dut y on which tariff reductions are based is the most 
favoured nation (MFN) tariff that was in force in th e Parties on the date of entry into force of the 
Agreement (1 March 2011). 
13. For products classified under HS Chapters 25- 97 (except those listed in Annex 1 to the 
Agreement) Turkey will abolish duties on imports from Chile immediately upon entry into force of 
the Agreement.
5  Chile will abolish duties on imports of these goods from Turkey in various stages 
ranging from upon entry into force of the Agreemen t for some products and gradual reduction in 
duties annually from 80% of the basic duty on the date of entry into force to 60%, 40% and 20% of 
the basic duty on 1 January of each year following r espectively, to elimination on 1 January of the 
fourth year following the entry into force of the Agreement (1 January 2015).  Products listed in 
Annex III are excluded from liberalization under the Agreement.6  
14. For products under HS Chapters 1-24 and those listed in Annex 1 to the Agreement, customs 
duties on imports by Chile of products from Turkey will be eliminated immediately or be subject to 
annual reductions from 85% of the basic duty on the date of entry into force to 70%, 55%, 40%, 25%, 
and 10% of the basic duty on 1 January of each y ear following respectively, to be followed by 
elimination of duties on 1 January of the sixth year following the entry into force of the Agreement (1 January 2017 ). Products listed in Table A of Appendix 1 to Annex IV are excluded from 
liberalization under the Agreement.  Turkey provi des liberalization under these Chapters through 
tariff rate quotas (see 4 below). 
                                                      
5 Annex 1 to the Agreement refers to mannitol (HS2905.43), sorbitol (2905.44), essential oils 
(HS 33.01), odoriferous substances (HS 3302.10), albuminodal substances, modified starches, glues 
(HS 35.01-35.05), finishing agents (HS 3809.10), sorbitol n.e.p.(HS 3824.60), hides and skins (HS41.01-41.03), 
raw furskins (HS 43.01), raw silk and silk waste (HS50.01-50.03), wool and animal hair (51.01-51.03), raw cotton, raw waste and cotton carded or combed (HS52.01-52.03), raw flax (HS53.01) and raw hemp (HS53.02). 
6 These are imports of used car and other tyres. WT/REG293/1 
Page 8  
 
  3. Liberalization schedule 
(a) Liberalization of tariffs and imports 
15. Details of tariff elimination by Turkey and Chile are provided in Tables III.1A and III.1B, 
below respectively.   While around 23.2% of Turkey's  tariff was already duty free on an MFN basis in 
2011
7, corresponding to an average 87.3% of its imports from Chile in the 2008-2010 period, as a 
result of the Agreement it eliminated tariffs on an  additional 10,139 lines (61.6% of the tariff) 
corresponding to an average 8% of its imports from Chile during 2008-2010;  thus as a result of the Agreement Turkey will eliminate duties on 84.8% of its tariff, corresponding to 95.3% of its imports 
from Chile.  At the end of implementation Turkey will maintain tariffs on 2, 487 lines (15.1% of its 
tariff), relating to 4.6% of its imports from Chile. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. Turkey 
Duty phase-out 
period Number of lines % of total lines in 
Turkey's tariff 
schedule Value of Turkey's imports 
from Chile  
(2008-2010) in million US$ % of Turkey's total 
imports from Chile 
2008-2010 
MFN duty free 
(2011) 3,822 23.2 242.2 87.3 
2011 10,139 61.6 22.3 8.0 
Remain dutiable 2,487 15.1 12.8 4.6 
Total 16,448 100.00 277.3 100.0 
 
Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Turkey. 
 
16. For Chile, at the time of entry into force of  the Agreement 35 tariff lines were duty free on an 
MFN basis, accounting for 0.5% of its tariff.8  The Agreement liberalized 7,242 lines immediately 
upon entry into force, accounting for 93.9% of the tariff and 99.1% of its average imports from Turkey during 2008-2010.  A further 270 lines are to be  liberalized in 2015, resulting in 97.4% of the 
tariff becoming duty free, which accounts for 99.9%  of its average imports from Turkey during 
2008-2010.  In 2017 when the Agreement is fully implemented, Chile would have liberalized 97.9% 
of its tariff;  131 lines, or 1.7% of the tariff will remain subject to duty. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Chile 
Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from Turkey  
(2008-2010) in million US$ % of Chile's total 
imports from Turkey 
2008-2010 
MFN duty free (2011) 35 0.5 0.0 0.0 
2011 7,242 93.9 325.3 99.1 
2015 270 3.5 2.8 0.8 
2017 37 0.5 0.2 0.0 
Remain dutiable 131 1.7 0.0 0.0 
Total 7,715 100.00 328.2 100.0 
 
Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Chile. 
 
                                                      
7 In 2011, Turkey's MFN tariff contained 16,448 lines at the HS 12-digit level.  Of these, 98.3% 
(16,170 lines) are subject to ad valorem rates of duty.  Of the 278 lines subject to non- ad valorem  rates, 196 
have compound rates, while 55 have mixed and 27 alternate rates of duty. 
8 In 2011 Chile's MFN tariff consisted of 7,715 lines at the HS 8-digit level.  Of these lines, 8 are 
non ad valorem , all of which are subject to compound rates of duty.  WT/REG293/1 
 Page 9 
 
 
  (b) Turkey's tariff liberalization 
17. Further details of Turkey's liberalization sche dule by HS Section and HS Chapter is provided 
in Table III.2 and Chart III.1 below.  At the end of implementation, Turkey will maintain tariffs 
mainly on imports of agricultural products from Chile (HS Sections I-IV).  The average final tariff on 
the lines remaining subject to duties will range from 4. 2% for HS Section VII (plastics and rubber), up 
to 82.6% for Section I (live animals).  Chart III.1 below shows average tariffs on tariff lines remaining 
subject to duties at the end of implementation by HS Chapter.  The average preferential tariffs for 
most HS Chapters are expected to be the same as the current MFN average.  The average preferential 
tariffs are lower than the MFN averag e in Chapters 8, 9, 12 and 22.  In the case of certain Chapters the 
average preferential tariff appears higher than  the MFN average in the Chart (for instance 
HS Chapters 4 and 17) due to the presence of speci fic duties for which the Secretariat does not have 
ad valorem  equivalents.  In addition, Chapters 33, 35 and 38 contain only specific duties for which no 
ad valorem  equivalents are available.  Further details of  tariff liberalization by Turkey are provided in 
Annex I below. 
Table III.2 
Turkey:  Tariff elimination under the Agreement, by HS section 
HS section and description  MFN 
average
%Total  
No of 
linesMFN 
2011  Number of 
duty-free linesRemain 
Dutiable Avg. Final 
Tariff 
(Dutiable) a 2011
I Live animals and animal products 71.7 892 93 1 798 82.6 
II Vegetable products 29.1 776 80 75 621 32.9 
III Animal or vegetable fats and oils 22.7 201 31 24 146 30.1 
IV Prepared foods etc. 47.2 1,067 76 91 900 57.3 
V Minerals 1.2 421 233 188   
VI Chemicals and chemical products 4.7 3,046 633 2,397 16 -- 
VII Plastics and rubber 4.1 483 115 362 6 4.2 
VIII Hides and skins 2.9 220 60 160   
IX Wood and articles 1.9 322 175 147   
X Pulp, paper etc. 0.0 441 441    
XI Textiles and textiles artic les 7.9 2,332 91 2,241   
XII Footwear, headgear 7.3 154 3 151   
XIII Articles of stone 3.9 424 48 376   
XIV Precious stones, etc. 1.1 94 65 29   
XV Base metals and base metals products 4.3 1,846 628 1,218   
XVI Machinery 2.0 2,344 709 1,635   
XVII Transport equipment 5.2 442 53 389   
XVIII Precision equipment 2.2 573 205 368   
XIX Arms and ammunition 2.2 28 5 23   
XX Misc. manufactured articles 2.6 328 64 264   
XXI Works of art, etc. 0.0 14 14    
Total 12.0 16,448 3,822 10,139 2,487 57.4 
 
a average of ad valorem  tariffs and ad valorem  component of non- ad valorem  duties. 
-- specific duties 
Note: For tariff lines subject to TRQs, only the out-of-quota dut y is included in the tariff-related calculations;  for the cal culation of  
 averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Turkey.  WT/REG293/1 
Page 10  
 
  020406080100120140
01 02 03 04 05 06 07 08 09 10 11 12 13 15 16 17 18 19 20 21 22 23 24 33 35 38 40Chart III.1
Turkey: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
MFN Preferential
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations; for the calcu lation of  
averages, specific rates are excluded and the ad valorem parts of alternate rates are included.
For HS Chapters 33, 35 and 38 the preferential tariffs only contain specific duties.
Source :  WTO Secretariat estimates based on data provided by Turkey. 
 
(c) Chile's tariff liberalization 
18. Further details of Chile's liberalization sch edule is provided in Table III.3 below by 
HS Section and Chart III.2 by HS Chapter. The majo rity of tariff liberalization takes place in 2011 
when the Agreement entered into force, followed by 270 lines liberalized in 2015, relating mainly to 
Sections XV (base metals), XVI (machinery), XII (footwear and headgear) and XI (textiles);  an 
additional 37 lines, mainly in Section II (vegetable pr oducts) are to be liberalized in 2017.  At the end 
of liberalization, 131 lines are to remain subject to  duties, mainly in HS Section I (live animals and 
animal products) and IV (prepared foods), corresponding  to Chapters 2, 4, 10, 11, 17, 18, 21 and 40.  
The average final tariff on these dutiable lines is the same  as the MFN tariff.  Further details of tariff 
liberalization by Chile are provided in Annex I below. 
Table III.3 
Chile: Tariff elimination under the Agreement, by HS section 
HS section and description  MFN 
average
% Total 
No. of 
lines  Number of duty-free lines
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% MFN 
2011 2011 2015 2017 
I Live animals and animal products 6.0 604  499   105 6.0 
II Vegetable products 6.0 405  373  30 2 6.0 
III Animal or vegetable fats and oils 6.0 60  57  3   
IV Prepared food etc. 6.0 415  393  4 18 6.0 
V Minerals 6.0 196  195 1    
VI Chemicals and chemical products 6.0 1,232  1,225 7    
VII Plastics and rubber 6.0 304  293 5  6 6.0 
Table III.3 (Cont'd) WT/REG293/1 
 Page 11 
 
 
  HS section and description  MFN 
average
% Total 
No. of 
lines  Number of duty-free lines
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% MFN 
2011 2011 2015 2017 
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 article s 6.0 1,093  1, 065 28    
XII Footwear, headgear 6.0 109  71 38    
XIII Articles of stone 6.0 187  187     
XIV Precious stones, etc. 6.0 60  60     
XV Base metals and base metals 
products 6.0 637  490 147    
XVI Machinery 6.0 1,142 2 1,096 44    
XVII Transport equipment 5.5 333 29 304     
XVIII Precision equipment 6.0 258  258     
XIX Arms and ammunition 6.0 23  23     
XX Miscellaneous manufactured 
articles 6.0 202  202     
XXI Works of art, etc. 6.0 7  7     
Total 6.0 7,715 35 7,242 270 37 131 6.0 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source :   WTO estimates based on data provided by Chile. 
 
012345678
02 04 10 11 17 18 21 40Chart III.2
Chile: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
Source :  WTO Secretariat estimates based on data provided by ChileMFN Preferential
 
 
 WT/REG293/1 
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  4. Tariff rate quotas 
19. Turkey's market access concessions to Chile for products under HS Chapters 1-24 and those 
listed in Annex 1 to the Agreement are provided th rough tariff rate quotas listed in Appendix II of 
Annex IV to the Agreement.
9  Concessions are provided mainly in the form of a preferential rate of 
zero (margin of preference of 100% of the MFN rate),  or 50% of the applied MFN rate; in addition in 
some cases Turkey guarantees the provision of "EU treatment" for imports within the quota amount.  
Products granted such "EU Treatment " preferences are listed in Annex II below.  Imports of these 
products from Chile are subject to unlimited import quota volumes.  
20. Chart III.3 below shows the average preferential ta riffs by HS Chapter that apply to products 
subject to tariff rate quotas compared with their corresponding average applied MFN rate.  Products 
which are subject to an unlimited tariff quota volum e and a scheduled preferential duty of zero, are 
excluded from the Chart and instead included in Tu rkey's overall liberalization schedule above.  In 
addition, some tariff lines with an unlimited tariff quota volume and zero ad valorem tariffs continue 
to be subject to a specific tariff on the "agricultura l component".  As the ad valorem equivalents for 
the specific agricultural component was not availa ble to the Secretariat, these lines have been 
excluded from the calculations for the Chart. 
-100102030405060708090100110120130140
 100
 650
 1,350 1,600 2,200
 3,600
 800
100
 200
 50
 100 150 200 300 500
50
 100 200*500 600
 1,400
*1500
 3,000
UnlimitedUnlimited
1000
 50200
 250 400 100 400 500
Unlimited
 100
150
200
 100 200 300
400600100150200250300200
Unlimited
350
1000
150003 04 06 07 08 09 10 11 12 15 16 20 21 22 23Average  rate  of  duty  (%)
TRQ Volume (in metric tons)
PREF MFNHS ChapterChart III.3.  Turkey's concessions on imports from Chile, by HS Chapter
Note:  the calculation of averages  exclude tariff lines with non ad valorem duties  under HS chapters 4, 7, 15, 17-22, 33, 35 and 38.
for the products outside the TRQ volume, the out-of quota duties are the MFN rates.
* preferential seasonal duties apply to HS subheadings 0809=100% MFN reduction (1 November-30 April); 0806=50% MFN reduction (1  December-30 April); 
and 0805=100% MFN reduction (1 May-31 August).
Source: Turkey authorities.  
 
 
 
                                                      
9 The products are found mainly in HS Chapters 3-24, 29, 33, 35, and 38.  WT/REG293/1 
 Page 13 
 
 
  B. RULES OF ORIGIN  
21. Article 10 and Annex V of the Agreement deals wi th rules of origin;  Article 10 also deals 
with co-operation between the customs administrations of the Parties.  
22. Annex V on Definition of the Concept of  Originating Products and Methods of 
Administrative Co-operation defines origin as products  wholly obtained in either Turkey or Chile 
within the meaning of Article 410;  and products obtained in Turkey or Chile incorporating materials 
which have not been wholly obtained there, provi ding that such materials have undergone sufficient 
working or processing in that Party.  Article 5 of Annex V describes products which are not wholly obtained in either Party as sufficiently worked  or processed when the conditions set out in 
Appendix II to the Annex are fulfilled.  In genera l these rules require the materials used in the 
manufacture of products be wholly obtained in th e Party or have undergone a change in tariff 
classification or if the value of the inputs do not exceed  a certain percentage of the ex-works price of 
the product if they are to obtain originating status .  If products have acquired originating status by 
meeting these conditions, the conditions applicable  to the resulting product do not apply to the 
incorporating product and no account shall be taken of the non-originating materials that may have 
been used in its manufacture (Art. 5 of Annex V) .  Notwithstanding this, non-originating materials 
which, according the conditions in Appendix II of A nnex V, should not be used in the manufacture of 
a product may be used provided that their total value does not exceed 10% of the ex-works price of the products; and any of the percentages given for the maximum value of non-originating materials in 
Appendix II are not exceeded.  This latter rule does not apply to products within HS Chapters 50-63 
(textiles and clothing). 
23. Certain activities and operations are considered insufficient working or processing to confer 
originating status even if the requirements of Ar ticle 5 of Annex V are satisfied.  These include:  
preserving operations to ensure that products rema in in good condition duri ng transport and storage 
such as drying, freezing, ventilation, chilling a nd like operations;  breaking-up and assembly of 
packages;  washing, cleaning, removal of dust, oxid e, oil, paint or other covering;  ironing or pressing 
of textiles;  simple painting and polishing operations; etc. (Art. 6).  All operations carried out in either 
of the Parties on a given products will be considered when determ ining whether the processing is 
insufficient as above.  In determining the origin , only packaging included with the product for 
classification purposes, will be included in the determin ation of origin (Art. 7).  Other elements to be 
                                                      
10 Article 4 of Annex V defines products considered as wholly obtained in Turkey or Chile as:  
a) mineral products extracted from their soil or from thei r seabed;  b) vegetable product s harvested there;  c) live 
animals born and raised there;  d) products from live animals raised there;  e) products obtained by hunting or fishing conducted there;  f) products of sea fishing and other products taken from the sea outside the territorial 
waters of Turkey or of Chile by their vessels;  g) products made aboard their factory ships exclusively from 
products referred to in subparagraph f) (where "vessels" and "factory ships" refers to  vessels and factory ships 
registered or recorded in Turkey or Chile which sale under their respective flags);  h) used articles collected 
there fit only for the recovery of raw materials or for use as waste;  i) waste and scrap resulting from 
manufacturing operations conducted there;  j) products extracted from marine soil or subsoil outside their territorial seas provided that they have sole rights to work that soil or subsoil;  k) goods produced there 
exclusively from the products specified in subparagraphs a) to j).  In addition, products obtained under (f) and 
(g) above shall be considered as wholly obtained in Tu rkey or Chile when their "v essels" and "factory ships" 
(a) are owned to an extent of at least 50% by nationals of Turkey or Chile or by a partnership or limited 
company with its head office in Turkey or Chile, of which the manager or managers, Chairman of the Board of 
Directors or the Supervisory Board, and the majority of their members are nationals or Turkey or Chile and of 
which at least half the capital belongs to those States or to public bodies or nationals of these States;  or by a 
company other than referred to abov e, with its head office in Turkey or Chile, of which the manager(s), 
Chairman of the Board of Directors or Supervisory Boar d, and the majority of thei r members are nationals of 
Turkey or Chile;  and (b) of which the master and at least 75% of the cr ew, including officers are nationals or 
Turkey or Chile. WT/REG293/1 
Page 14  
 
  included are accessories, spare parts and tools, wh ich if dispatched with a piece of equipment, 
machine, apparatus or vehicle, and which are part  of the equipment, included in its price and not 
invoiced separately, will be regarded as part of the eq uipment, machine, apparatus or vehicle (Art. 8);  
and sets which will be regarded as originating when all component products are originating, with sets 
containing originating and non-originating components considered as originating if the value of the 
non-originating products does not exceed 15% of th e ex-works price of the set (Art. 9).  Neutral 
elements such as energy and fuel, plant and equi pment, machines and tools and goods which do not 
enter and which are not intended to enter into the final composition of the product are not required for determining origin (Art.10). 
24. The principle of territoriality applies requiring that the conditions described above be met 
without interruption in Turkey or in Chile (Art. 11) .  If originating goods exported by the Parties to a 
third party are re-imported, they must be consid ered as non-originating unless it can be demonstrated 
to the satisfaction of the customs authorities that th e goods re-imported are the same as those exported 
and they have not undergone any operation beyond th at necessary to preserve them in good condition 
while in that country or while being exported.  Goods that obtain preferential treatment under the 
Agreement must normally be transported directly be tween the Parties.  However, trans-shipment or 
temporary warehousing in third parties is permitt ed provided that the products remain under the 
surveillance of the customs authorities in the coun try of transit or warehousing and do not undergo 
operations other than unloading, reloading, or any operation designed to preserve them in good 
condition (Art. 12).
11  In addition, originating products that are sent for exhibition in a third party and 
sold after for import into the Parties shall benef it from preferential treatment under the Agreement if it 
can be demonstrated to the satisfaction of the cu stoms authorities of the importing Party that the 
exporter has consigned the products from a Party to the third country and exhibited them there;  the products have been sold or otherwise disposed of by  the exporter to a person in a Party;  they have 
been consigned during the exhibition or immediately th ereafter in the state in which they were sent for 
exhibition and since they were exhibited not used for any other purpose;  and remained during the 
exhibition under customs control (Art. 13).
12 
25. Non-originating materials used in the manufactur e of products originating in the Parties for 
which a proof of origin is issued shall not be subject  in either Party to drawback of or exemption of 
customs duties of whatever kind.  Proof of orig in requirements and procedures are described in 
Title V (Articles 15-29) and include the provision of a EUR.1 movement certificate or an invoice 
declaration (Art. 20) by the exporter, a deliv ery note or any other commercial document which 
describes the products concerned in sufficient detail to enable them to be identified.  A movement 
certificate EUR.1 shall be issued if the products con cerned can be considered as originating in either 
Party and fulfil other requirements of Annex V.  The issuing authorities may take any necessary steps 
to verify the originating status of the products a nd fulfilment of the other requirements, including the 
right to call for any evidence and carry out any inspection of the exporter's account or any other check 
considered appropriate.  The certificate may also be issued retroactively after export of the product if 
not issue at the time of export due to errors or invol untary omissions or special circumstances or if it 
is demonstrated satisfactorily to the competent au thorities that a certificate was issued but was not 
accepted upon import for technical reasons (Art. 17).  When the exporter in Chile repeatedly provides 
                                                      
11 Evidence including a single document covering the passage of the good from the exporting Party 
through the country of transit;  or a certificate issued by the customs authorities of the country of transit giving 
an exact description of the products, dates of unloading and reloading and where applicable the names of the 
ships or other means of transport us ed and certifying the conditions under which the products remained in the 
country of transit;  or any substantiating documents, must be provided to the customs authorities of the 
importing Party. 
12 Applies to any trade, i ndustrial, agricultural or crafts exhib ition, fair or similar public show or 
display which is not organized for private purposes in shops or business premises with a view to the sale of 
foreign products (Article 13.3).  WT/REG293/1 
 Page 15 
 
 
  false information or documentation, the competent authority may temporarily suspend the issuance of 
new certificates of origin (Art.16.7).  In Turkey , the Customs Law and Customs Regulation stipulates 
measures that may be taken by the Customs Admi nistration if false info rmation is provided to 
customs by the exporter or importer.  An invoice declaration may be made out by an approved 
exporter who makes frequent shipments, or by any exporter of any consignmen t consisting of one or 
more packages containing originating products, wh ose total value does not exceed €6,000 (Art. 20).  
To facilitate trade the Parties sh all seek the possibility to implement an electronic system of 
certification and submission of proof of origin an d recognition of electronic signature.  The time-
frame for its implementation will be evaluate d by the Sub-Committee on Customs and Rules of 
Origin.  As the sub-committee on Customs and Rules of Origin has not met thus far, the electronic 
system has not yet been implemented by the Parties. 
26. Title VI of Annex V deals with arrangements for administrative co-operation on rules of 
origin.  The Parties agree to provide each other w ith the addresses of the authorities responsible for 
verification and specimen impressions used for the i ssuing of certificates and will assist each other 
through their respective administrations in checki ng the authenticity of the certificates or invoice 
declaration and the accuracy of the information provide d.  The verification of proof of origin may be 
carried out by the competent aut horities of the exporting Party at random or whenever the customs 
authorities of the importing Party have reasonable doubts about the authenticity of the documents provided.  The authorities shall have the right to call for any evidence and to carry out any inspection 
of the exporters' accounts or any other checks co nsidered appropriate.  During the verification 
process, if the customs authorities of the impor ting Party decide to suspend the granting of 
preferential treatment to the products concerned, th eir release shall be offered to the importer subject 
to any precautionary measures judged necessary.  The results of the verification will be provided to 
the customs authorities requesting it as soon as possible and must indicate clearly whether the documents are authentic and whether the products ca n be judged as originating in either Party and 
fulfil the other requirements of Annex V.  If in cases of reasonable doubt there is no response within 
10 months of the date of the request for verification or if the reply contains insufficient information to 
determine the authenticity of the document or the real origin of the products, the importing customs 
authority shall, except in exceptional circumstanc es, refuse entitlement to the preferences.  Any 
disputes concerning these verification procedures wh ich cannot be settled between the two customs 
authorities or where they raise a question about the interpretation of Annex V,  will be submitted to the 
Sub-Committee on Customs and Rules of Origin.  Th e settlement of disputes between the importer 
and importing Party, shall be under the legislation of that Party.  Penalties for infringement, in 
particular for a person who draws up, or causes to be drawn up, a document which contains incorrect 
information for the purpose of obtaining preferential treatment, may be imposed in accordance with internal legislation.  In the case of Chile, the re levant internal legislation is the Chilean Customs 
legislation.  For Turkey, penalties for infringement  are stipulated in Article 47 of the Regulation 
concerning the determination of the preferential originating status of goods in trade under the 
Agreement.  Provisions of the Customs Law no. 4458 (dated 27 October 1999) and the Law on Fighting Against Smuggling no. 5607 (dated 21 Marc h 2007) are applicable for acts of infringement 
of the provisions of this Regulation under the Agreement.  
Article 39 commits the Parties to negotiating an agreement on co-operation and mutual assistance in 
customs matters through their respective customs au thorities.  According to the Parties negotiations 
on a Customs Co-operation Agreement have been  completed but have not yet been signed. 
27. Article 10 of the Agreement establishes a Sub-Committee on Customs and Rules of Origin 
(see Section IV.E below).   WT/REG293/1 
Page 16  
 
  C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
28. Article 12 of the Agreement requires the Parties to abolish and not impose new customs 
duties and charges having equivalent effect on exports  between the Parties upon the date of entry into 
force of the Agreement.  Except as otherwise provi ded by the Agreement neither Party may adopt or 
maintain any prohibition or restriction on the expor t or sale for export of any good destined for the 
territory of the other Party excep t in accordance with GATT Article XI and its interpretative notes, 
which are incorporated into and made a part of the Agreement, mutatis mutandis  (Article 13).  Where 
compliance with the provisions of Article 13 leads to re-export towards a third country against which 
the exporting Party maintains quantitative export rest rictions, duties or measures or charges on the 
products concerned, or a serious shortage or threat  thereof of a product essential to the exporting Party 
or a shortage of essential quantities of domestic mate rials for a domestic industry during periods when 
the domestic price of the materials is held below th e world price as part of a government stabilization 
plan, and where such situations are likely to give rise to major difficulties for the exporting Party, the 
Party may take measures under certain procedures, as described in Article 15 (see further details in 
Section D.2 below). 
29. Fees and charges of whatever character (excep t customs duties, charges equivalent to an 
internal tax or other internal charges, applied co nsistently with paragraph 2 of GATT Article III and 
antidumping and countervailing duties) on exports ar e to be limited to the approximate cost of 
services rendered and do not represent an indirect  protection to domestic goods or a taxation on 
exports for fiscal purposes. 
D. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Sanitary and phytosanitary measures 
30. Chapter I of Title III deals with sanitary and phytosanitary measures.  Its objectives are to 
facilitate bilateral trade in food, plants and an imals and products thereo f while protecting human, 
animal or plant life or health in the territory of  each Party;  to deepen mutual understanding of each 
Party's regulations and procedures on consultati ons on and implementation of SPS measures;  to 
strengthen co-operation between the Parties' co mpetent authorities that have responsibility for 
SPS matters;  and to provide a means to improve  communication, co-operation and resolution of 
SPS issues.  While under Article 21 the Parties simply affirm their rights and obligations with respect 
to each other under the WTO Agreement on SPS Measures and agree not to apply their SPS regulations as an arbitrary or unjustifiable discrimin ation or a disguised restriction on trade between 
them, the Agreement creates a sub-Committee on SPS Matters (see Section IV.E below).   
(b) Technical barriers to trade 
31. Chapter II of Title III deals with technical regulations, standards and conformity assessment 
procedures and applies to all standards, technical  regulations and conformity assessment procedures 
as defined in the WTO TBT Agreement that may, dir ectly, or indirectly, affect trade in goods between 
the Parties.  In this regard, the Decision of the WTO Committee on TBT on Principles for the 
Development of International Standards, Guides a nd Recommendations with relation to Articles 2, 5 
and Annex 3 of the TBT Agreement shall also apply to the Agreement.   
32. Under Article 27 the Parties confirm their right s and obligations with regard to each other 
under the TBT Agreement.  The Agreement aims to  increase and facilitate trade by preventing and 
eliminating unnecessary obstacles to trade and enha ncing bilateral co-operation in accordance with 
the rights and obligations of the Parties under the TB T Agreement.  To facilitate trade they agree to  WT/REG293/1 
 Page 17 
 
 
  intensify bilateral co-operation in this area by identifying trade facilitating bilateral initiatives on 
TBT that are appropriate for particular issues or sectors such as co-operation on regulatory issues such 
as convergence and/or equivalence of technical regulations and standards, alignment with 
international standards, reliance on a supplier's decl aration of conformity and use of accreditation to 
qualify conformity assessment bodies and recognition of conformity assessment results (Article 28). 
33. The Parties believe that transparency in d ecision making is important.  Article 29 on 
Transparency provides for procedures to share in formation on proposed technical regulations and 
conformity assessment procedures and to allow co mment from the other Party.  Notices published 
under Article 2.9 or 5.6 of the TBT Agreement must  include a statement describing the objectives of 
the proposed technical regulation or conformity assessment procedure and rationale for the approach 
proposed;  and must be transmitted electronically to  the other Party's enquiry point established under 
Article 10 of the TBT Agreement, at the same time as it is sent to the WTO.  Each Party should allow, 
where possible, a period of at least 60 days from th e date at which the proposal is transmitted, for 
written comment from the other Party.  A notification by a Party under Article 2.10 or 5.7 of the TBT Agreement should also be transmitted electronically  to the other Party at the same time as to the 
TBT Enquiry Point.  Upon request from the other Party, the Party must provide information on the 
objective of, and rationale for, a standard, techni cal regulation or conformity assessment procedure 
adopted or proposed by the Party. 
34. To implement the provisions on TBT, the Parties agree to provide each other technical 
co-operation, including exchanging legislation,  regulations, rules and other information and 
periodicals published by the national bodies responsib le for technical regulations, standards, 
conformity assessment, metrology and accreditation;   general information and publications on 
conformity assessment, certification bodies including notified bodies, designation and accreditation of conformity assessment bodies.  In addition, any in formation or explanation requested by a Party 
pursuant to the provisions of the Chapter, shall be provided in print or electronically by the other Party within a reasonable period of time (Article 32). 
35. The Agreement also establishes a sub-Committe e on Standards, Technical Regulations and 
Conformity Assessment (Sub-Committee on TBT Matters) to address any matter related to the effective functioning of the TBT Chapter, which w ill report to the Joint Committee (see Section IV.E 
below).   
2. Safeguard mechanisms 
(a) General safeguards 
36. The Parties retain their rights and obliga tions under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards and any other relevant  provisions in the WTO Agreement and their 
successors (Article 33).  No add itional rights or obligations are conferred by the Agreement with 
regard to actions taken under Article XIX of GATT 1994 and the WTO Agreement on Safeguards and 
their successors. 
(b) Other 
(i) Balance of payments measures 
37. Article 58 permits a Party to impose measures fo r balance of payments reasons but only in 
accordance with that Party's rights and obligatio ns under GATT 1994, including the Declaration on 
Trade Measures Taken for Balance of Payments Pu rposes (1979 Declaration) and the Understanding 
on the Balance of Payments Provisions of the GATT 1994.  In adopting such measures the Party shall 
immediately consult with the other Party. WT/REG293/1 
Page 18  
 
  (ii) Re-export and serious shortage 
38. Where compliance with the Agreement's provisions on maintaining or adopting prohibitions 
on imports and exports (Article 13) leads to:  (a) re-export towards a third country against which the 
exporting Party maintains quantitative export restric tions, export duties or measures having equivalent 
effect for the product concerned;  (b) a serious shor tage or threat thereof of a product essential to the 
exporting Party;  or (c) a shortage of essentia l quantities of domestic materials for a domestic 
processing industry during periods when the domestic price of the materials is held below the world 
price as part of a government stabilization plan;  and wh ere such situations give rise to or are likely to 
give rise to major difficulties for the exporting Party,  that Party may take appropriate measures under 
the conditions and procedures in Article 15. 
39. Priority must be given to measures which least disturb the functioning of the Agreement and 
which are not applied in a manne r which would constitute a means of arbitrary or unjustifiable 
discrimination or a disguised restriction on trade and shall be eliminated when the conditions no 
longer justify their maintenance.  Also, the measur es which may be adopted to address (c) above shall 
not operate to increase the exports of or the prot ection afforded to the domestic processing industry 
concerned and shall not depart from the Agre ement's provisions on non-discrimination.  
40. The Party intending to take measures under th ese provisions shall supply the Joint Committee 
with all relevant information prior to taking the m easures, with a view to seeking a solution acceptable 
to the Parties.  Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party intending to take the measures may apply the measures needed to deal with the situation and in form the other Party immediately thereof.  The 
Parties may agree any means needed to end the difficulties in the Joint Committee.  If agreement 
cannot be reached within 30 days of the matter being referred to the Joint Committee the exporting 
Party may apply measures under Article 15 on export s of the products concerned.  Any measure 
applied shall be immediately notified to the Jo int Committee and shall be subject to periodic 
consultations, particularly with a view to estab lishing a timetable for their elimination as soon as 
circumstances permit. 
3. Anti-dumping and countervailing measures 
41. The Parties retain their rights and obliga tions under Article VI of GATT 1994, the 
WTO Agreement on Implementation of Article VI of GATT 1994 and the WTO Agreement on 
Subsidies and Countervailing Measures, and their successors (Article 34).  No additional rights or 
obligations are conferred by the Agreement with regard to the application of anti-dumping and 
countervailing measures by the Parties. 
4. Subsidies and State-aid 
42. There is no reference in the Agreem ent to subsidies or State-aid. 
5. Other regulations 
E. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
1. Agricultural, processed agriculture and fishery products 
43. The Parties, taking into account the role of agriculture in their respective economies, the 
development of trade in agricultural products and th eir respective agricultural policies, shall examine 
in the Joint Committee the possib ilities of granting further concessions to each other in trade in 
agricultural products.  If they take a decision to improve the conditions of access, they will evaluate  WT/REG293/1 
 Page 19 
 
 
  the increase in tariff rate quota quantities provided for agricultural products and the reduction or 
elimination of customs duties (Article 19). 
44. Under Article 20 of the Agreement Chile may ma intain its price band system as established in 
its Law no. 18.525 or successive systems for the prod ucts covered by that law, provided it is applied 
in a manner that is consistent with Chile's ri ghts and obligations under the WTO Agreement and does 
not afford more favourable treatm ent to imports of third countries, including countries with which 
Chile has concluded or will conclude in the futu re an agreement notified under Article XXIV of 
GATT 1994.13  
IV. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
45. In addition to transparency provisions in individua l Chapters [list them], Chapter I of Title VI 
deals with transparency.  Artic le 51 establishes contact points  in the Parties to facilitate 
communication on any trade matter covered by the Agreement.14  The contact point of a Party, upon 
the request of the other Party, shall indicate the o ffice or official responsible for the matter concerned 
and provide the required support to facilitate communi cation with the requesting Party.  In addition, 
on the request of a Party, and to the extent possibl e under the Parties' domestic legislation, the other 
Party will provide information and reply to any ques tion from the first Party relating to an actual or 
proposed measure that might substantially affect the operation of the Agreement.  The information 
shall be considered to have been provided when it  has been made available in the notification to the 
WTO or when it has been made an official, publicly available and free of charge website of the Party 
concerned.  Other transparency provisions include  co-operation in bilateral and multilateral fora on 
ways to increase transparency in trade matters (Art . 52) and requiring the Parties to publish or make 
publicly available their laws and regulations rela ting to any trade matter covered by the Agreement 
(Article 53). 
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
46. There are no provisions dealing with current payments and capital movements in the 
Agreement (safeguard measures for balance of pa yments provisions exist under Article 58 and are 
described in D.(2) above). 
C. EXCEPTIONS  
47. Article 56 of the Agreement on General Excep tions incorporates Article XX of GATT 1994 
and its interpretative notes, and ma kes them part of the Agreement mutatis mutandis.   In addition, 
Article 57 allows security exceptions whereby th e Parties are not obliged to (a) provide any 
information, the disclosure of which they consider contrary to their essentially security interests;  
(b) prevent actions considered necessary for the prot ection of their essential security interests relating 
to fissionable materials or the materials from which they are derived relating to traffic in arms, ammunition and implements of war or traffic in other goods and materials carried on directly or 
                                                      
13 Under the price band system, specific duties are added to the ad valorem  rate to bring the import 
price up to a reference price;  if th e import price exceeds the reference price, rebates lead to a reduction of the 
applied tariff.  Price bands are established once a year , by Presidential Decree, taki ng into account average 
international prices of the respectiv e goods at major commodity  marketplaces.  Currentl y the following products 
are covered by the system:  HS1001.90.00; 1101.00.00; 1701.11.00; 1701.12.00, 1701.91.00; 1701.99.10; 
1701.99.20 and 1709.99.90. 
14 The Prime Ministry, Undersecretar iat for Foreign Trade or its successor (the Ministry of Economy 
following recent administrative restructuring) in Turkey;  and the Europe Department of the General Directorate 
of International Economic Affairs, or its  successor in Chile (Article 51.1).  WT/REG293/1 
Page 20  
 
  indirectly for supplying a military establishment, or  taken in times of war or other international 
emergency;  or (c) prevent any action in pursuance of their obligations under the UN Charter for the maintenance of international peace and security.  Any action taken under (b) and (c) above should be 
notified to the Joint Committee to the fullest exte nt possible including the measures taken and their 
termination.  
D. A
CCESSION AND TERMINATION  
48. The Agreement has no provision for accession by third parties.  It may be terminated by either 
Party through written notice to the other Party of  the intention to denounce the Agreement.  
Termination shall take effect on the first day of th e seventh month following notification to the other 
Party (Art. 65). 
E. INSTITUTIONAL FRAMEWORK  
49. The Agreement under Chapter II of Title VI estab lishes a Joint Committee which will be 
responsible for its administration and im plementation (see Box IV.1 below).   
Box IV.1:  The Functions of the Joint Committee 
- to review the general functioning of the Agreement; 
- set up sub-committees and working groups as it cons iders necessary to assist it in its tasks;   
- review, consider and, as appropriate, decide on specific matters relating to the operation and 
implementation of the Agreement, including matters reported by sub-committees and working groups;  
- supervise the work of sub-committees, working gr oups and contact points established under the 
Agreement;   
- facilitate, as appropriate, the avoidance and settle ment of disputes arising under the Agreement, 
including through consultations pursuant to Article 40 (Consultations); 
- consider and adopt any amendmen t to the Agreement or other modification or rectification to the 
commitments therein.  Any amendment or other modification approved by the Joint Committee will 
be implemented through Executive Agreements ( Acuerdos de Ejecución)  in accordance with the 
Political Constitution of the Repub lic of Chile and in accordance wi th the applicable internal 
procedures for Turkey; 
- as appropriate, issue interp retations of the Agreement; 
- review the possibility of further removal of the obstacles to trade between the Parties and the further 
development of the trade relationship; 
- explore ways to enhance further trade and investment between the Parties and to further the 
objectives of the Agreement;  and  
- take such other actions as the Parties may agree. 
Source: Article 54 of the Agreement. 
 
50. Each Party will be represented by its senior o fficials in the Joint Committee which will meet 
whenever necessary upon request by either Party but normally at least once a year.  The 
Joint Committee will adopt its rules of procedure and all its decisions will be taken by mutual 
agreement.  According to the Parties the Joint Committee has not yet met and therefore has not yet 
adopted its rules of procedures. 
51. There are also a number of sub-Committees which deal with specific i ssues in the Agreement 
and which report their findings to the Joint Committ ee.  These include on customs and rules of origin, 
SPS and TBT measures.  No other sub-Committees have been established since the entry into force of 
the Agreement.  WT/REG293/1 
 Page 21 
 
 
  52. The Sub-Committee on Customs and Rules of Origin reviews the implementation and 
operation of Annex V;  report its findings to the Joint Committee;  identify areas relating to Annex V 
to be improved to facilitate trade in goods between  the Parties;  and carry out any other functions 
designated by the Joint Committee under Article 54  (Establishment of the Joint Committee).  The 
Sub-Committee shall meet as may be agreed by the Pa rties and will be composed of representatives of 
the competent authorities of the Parties.15  Other government authorities may be invited to the 
meetings of the Sub-Committee whenever it is deem ed necessary.  The terms of reference of the 
Sub-Committee will be determined at the first mee ting of the Joint Committee, which may also amend 
the provisions of Annex V on rules of origin.  
53. Under Article 21, the sub-Committee on SPS ma tters, which comprises representatives of 
both Parties with responsibility for SPS matters and reports to the Joint Co mmittee, provides a forum 
for:  (a) consulting on matters relating to the develo pment or application of SPS measures that affect 
or may affect trade between the Parties;  (b) c onsulting on issues, positions and agendas for meetings 
of the WTO Committee on SPS Measures  and other rele vant international organi zations referred to in 
the SPS Agreement;  (c) coordinating technical  co-operation programmes on SPS matters;  (d) 
improving bilateral understanding of  specific implementation issues concerning the SPS Agreement;  
(e) reviewing progress on address SPS matters that may arise between the Parties' competent authorities responsible for such matters;  and (f) di scussing matters with a view to reaching consensus 
on consultations under (a) above.  
54. The functions of the sub-Committee on Standards, Technical Regulations and Conformity 
Assessment (Sub-Committee on TBT Matters) include monitoring and reviewing implementation of 
the Chapter;  promptly addressing any matter raised by  a Party related to the preparation, adoption and 
application of TBT procedures;  providing a forum for discussion and exchanging information on the systems in the Parties for TBT procedures;  pr omoting, encouraging and otherwise facilitating 
bilateral co-operation between respec tive public and/or private organizations of the Parties responsible 
for standardization, testing, certification, accred itation and metrology;  exchanging information on 
developments in non-government al, regional and multilateral fora engaged in activities related to 
TBT procedures;  exploring means to improve access to the Parties' respective markets and enhancing 
the functioning of this Chapter;  and reviewing th e Chapter in light of any developments in the 
TBT Agreement and developing recommendations for amending the chapter in light of these 
developments.  The Sub-Committee is to meet at least once a year unless otherwise agreed by the 
Parties and was to determine its te rms of reference at its first meeting.  It may establish ad hoc 
working groups if necessary.  The Parties indi cate that the Sub-Committee has not yet met and 
therefore its terms of referen ce have not yet been drawn up.
  
F. DISPUTE SETTLEMENT  
55. Dispute Settlement provisions are covered under Title V of the Agreement (Articles 38-50).  
Dispute settlement under the Agreement may be availed of if a Party considers that a measure by the 
other Party is inconsistent with  its obligations under the Agreem ent;  or if the other Party has 
otherwise failed to carry out its obligations unde r the Agreement.  Where a dispute on any matter 
arises under the Agreement and the WTO Agreement, the complaining Party may select the dispute settlement procedure in which to settle the disput e but once it has requested a panel under one or the 
other, the forum selected shall be u sed to the exclusion of the other. 
56. The Parties will endeavour to agree on th e interpretation and im plementation of the 
Agreement and, through co-operati on and consultation, to avoid and settle disputes between them and 
                                                      
15 The competent authorities of the Sub-Committee on Cu stoms and Rules of Origin are representatives 
of the General Directorate of International Economic Affairs, Ministry of Foreign Affairs for Chile and the 
Ministry of Customs and Trade for Turkey. WT/REG293/1 
Page 22  
 
  to arrive at a mutually satisfactory resolution of  any matter that might affect its operation.  
Consultations may be requested in the Joint Co mmittee with respect to an existing or proposed 
measure or any matter relating to the interpretation and implementati on of the Agreement.  The Joint 
Committee will endeavour to resolve the disput e promptly through a decision and may make 
recommendations regarding implementing measures to be taken by a Party concerned and the 
timeframe for doing so.  It may call on technical advisers or create working or expert groups as it 
deems necessary to assist the Parties in resolvin g the dispute satisfactorily.  Failure to reach a 
mutually satisfactory agreement in the Joint Commi ttee could be followed by a request in writing by 
the complaining Party for the establishment of an arbitration panel.  The Party will identify the 
specific measure at issue, the legal basis of the complaint including any provision of the Agreement 
that it alleges has been breached and any other re levant provisions, and the factual basis of the 
complaint.  The request will be delivered to the other Party.  The Panel is established on the day on 
which its Chair is appointed.  Article 42 of the Agreement indicates the terms of reference of the 
Panel, while Article 43 requires that the Panel shall consist of three arbitrators, two appointed by each 
Party within 30 days of receipt of the request for est ablishing the Panel, and the third jointly agreed by 
the Parties;  if the Parties fail to agree on the thir d panellist, he/she shall be chosen within seven days 
by lot from the list established for the third arbitrator under procedures described in Article 43.  The 
Joint Committee will adopt its Rules of Procedures which provide for the rules of procedure of 
arbitration panels upon the entry into force of the Ag reement.  Unless otherwise agreed by the Parties, 
the Panel will follow these rules of procedures, and may, after consulting the Parties, adopt additional 
rules of procedure not inconsistent with those adopt ed by the Joint Committee (Art. 49);  the rules of 
procedure may also be modified or not applied by mutual consent of the Parties (Art. 50). 
57. Meetings of the Panel are closed to the public unless the Parties agree otherwise.  The Parties 
will have an opportunity to provide at least one written  submission and to attend any of the hearings.  
All information or written submissions to the Pane l, including any comments on the draft report and 
responses to questions put by the Panel shall be made  available to the other Party.  The Panel should 
consult with the Parties as appr opriate and provide adequate oppor tunity for reaching a mutually 
satisfactory resolution to the dispute.  It shall ma ke its decisions by consensus but may also take 
decisions by majority vote.  The Panel may also, at  the request of a Party or on its own initiative and 
subject to terms and conditions agreed by the Pa rties within ten days, seek information from any 
relevant source and consult expert s for advice.  Any information obtained in this manner shall be 
provided to the Parties along with the opportunity to comment. 
58. The Parties may agree that the Panel suspend its  work at any time for a period not exceeding 
12 months from the date of such agreement.  In su ch a case the time frames regarding the work of the 
Panel will be extended by the amount of time its work  was suspended.  The Parties may also agree to 
terminate the proceedings of the Panel by jointly no tifying the chair of the Panel at any time before 
the issuance of the Panel report to the Parties. 
59. The report of the Panel will be final and binding on  the Parties.  If the Parties agree, the Panel 
may make recommendations for resolu tion of the dispute in its report.
16  The findings of the Panel and 
any recommendations cannot however add to or dimi nish the rights and obligations of the Parties 
provided in the Agreement. Unless the Parties agre e otherwise, the Party complained against shall 
eliminate the non-conformity as determined in the Pa nel report, immediately, or within a reasonable 
period of time as mutually determined by the Parties.  In case of disagreement on the reasonable 
period of time, the matter may be referred to an ar bitration panel to determin e the reasonable period of 
time.  In case of non-implementation within this time period, or if the Party complained against 
informs the other Party that it is impracticable, the Party complained against shall, if requested, enter 
                                                      
16 The Parties clarify that the c oncept of "recommendations" in the Agreement does not correspond to 
that used in the WTO's DSU.  Instead recommendation is  a suggestion by the Panel on ways in which the Party 
concerned could implement the report by the Panel.  WT/REG293/1 
 Page 23 
 
 
  into negotiations with the complaining Party to reac h mutually satisfactory compensation.  If there is 
no satisfactory agreement within 20 days after the da te of receipt of the request, the complaining Party 
may suspend concessions or other obligations under the Agreement to the other Party after notifying 
such suspension 30 days in advance.  The level of suspension shall be equivalent to the level of the 
nullification or impairment.  If the Party complained  against considers that the requirements for the 
suspension of concessions or other obligations by the complaining party have not been met, it may 
refer the matter to an arbitration panel.  Un til the Panel makes a ruling concessions or other 
obligations may not be suspended.  The Panel's report to the Parties shall be final and binding on 
them.  A synopsis of the dispute settlement  process is given in Chart IV.1 below. 
 WT/REG293/1 
Page 24  
 
  Chart IV.1  Dispute Settlement Provisions under the Agreement 
 
 
 
    
 
     
 
    
 
     
 
    
 
    
 
     
 
    
 
     
 Request for Consultations 
30 days 
Joint Committee meets 
15 days 
Request for establishment of 
arbitral panel 
20 days 
Panel Established 
Report by Panel to Parties 
Reasonable period of time 
Implementation Non-implementation 
Request for negotiations 
20 days after 
receipt of request 
Suspension of obligations 
after 30 days 
If Party complained against 
feels requirements for 
Request for arbitration Panel 
60 days  
(extendable by 30 days)  
Report to Parties 
Binding and Final 3 months 
 extendable to  
5 months (75 days for perishable 
goods extendable to  
4 months)  WT/REG293/1 
 Page 25 
 
 
  G. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
60. Under Article 3 of the Agreement, the Parties confirm their rights and obligations under the 
Marrakesh Agreement establishing the World Trade Organization and the othe r agreements negotiated 
thereunder to which they are party as well as any ot her international agreement to which they are 
party.  In addition the Agreement will not prev ent the maintenance or establishment of customs 
unions, free trade areas or other arrangements betwee n either Party and third countries insofar as they 
do not alter the rights and obligations provided by  the Agreement (Article 4).  Consultations 
concerning agreements establishing or adjusting customs unions or free trade areas and any other 
issues relating to the Parties' respective trade policie s with third countries as required, are to be held 
upon request of a Party in the Joint Committee.   
61. The other RTAs to which the Parties are pa rty (notified and non-no tified) are listed in 
Table IV.1. below. 
Table IV.1 
Turkey and Chile: Participation in other RTAs (notified and non-notified in force), as of December 2011 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHILE a 
Colombia 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Australia 06.03.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Peru 01.03.09 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Honduras (Central America) 19.07.08 Goods & Services 2011  GATT Art. XXIV & GATS Art. V 
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 
India 17.08.07 Goods 2009 Enabling Clause 
China 01.10.06 
01.08.10 Goods 
Services 2007 
2010 GATT Art. XXIV 
GATS Art. V 
Brunei, New Zealand, Singapore 
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European 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 & Servi ces 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
El Salvador (Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Central America) 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997  GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Guatemala (Central America) 23.03.10 Goods & Services Not notified  
Ecuador 25.01.10 Goods Not notified  
Cuba 26.07.08 Goods Not notified  
MERCOSUR 01.10.96 Goods Not notified  
Bolivia 06.04.93 Goods Not notified  
Venezuela 02.04.93 Goods Not notified  WT/REG293/1 
Page 26  
 
  Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
TURKEY  
Jordan 01.03.11 Goods 2011 GATT Art. XXIV 
Serbia 01.09.10 Goods 2010 GATT Art. XXIV 
Montenegro 01.03.10 Goods 2010 GATT Art. XXIV 
Georgia 01.11.08 Goods 2009 GATT Art. XXIV 
Albania 01.05.08 Goods 2008 GATT Art. XXIV 
Egypt 01.03.07 Goods 2007 Enabling  Clause 
Syria 01.01.07 Goods 2007 GATT Art. XXIV 
Morocco 01.01.06 Goods 2006 GATT Art. XXIV 
Tunisia 01.07.05 Goods 2005 GATT Art. XXIV 
Palestinian Authority 01.06.05 Goods 2005 GATT Art. XXIV 
Bosnia and Herzegovina 01.07.03 Goods 2003 GATT Art. XXIV 
Croatia 01.07.03 Goods 2003 GATT Art. XXIV 
FYROM 01.09.00 Goods 2001 GATT Art. XXIV 
Israel 01.05.97 Goods 1998 GATT Art. XXIV 
EC 01.01.96 Goods 1995 GATT Art. XXIV 
EFTA 01.04.92 Goods 1992 GATT Art. XXIV 
ECO 17.02.92 Goods 1992 Enabling  Clause 
PTN 11.02.73 Goods 1971 Enabling  Clause 
 
Source: WTO Secretariat. 
 
a Chile has concluded six RTAs under the LAIA framework (with  MERCOSUR, Bolivia, Cuba, Ecuador, Peru, and Venezuela).  
 These RTAs have not been notified, but are included in periodic reports submitted by LAIA 
 
ECO:  ECONOMIC COOPERATION ORGANIZATION 
GSTP: GENERAL SYSTEM OF TRADE PREFERENCES AMONG DEVELOPING COUNTRIES LAIA: LATIN AMERICAN INTEGRATION ASSOCIATION 
PTN: PROTOCOL RELATING TO TRADE NEGOTIATIONS AMONG DEVELOPING COUNTRIES 
 
 
H. GOVERNMENT PROCUREMENT  
62. There are no provisions on government procurement in the Agreement. 
I. INTELLECTUAL PROPERTY RIGHTS  
63. Article 35 recognizes the importance of intell ectual property in promoting economic and 
social development, technological innovation and in  promoting the transfer of technology to the 
mutual advantage of producers and users of technology, the Parties reaffirm their mutual existing 
rights and obligations under the TRIPS Agreemen t and any other multilateral intellectual property 
agreements to which both are party.  
64. Nothing in the Chapter on Intellectual Prope rty Rights shall prevent a Party from adopting 
appropriate measures that are cons istent with the Agreement to pr event the abuse of intellectual 
property rights by rights holders or the resort to practices that unreasonably restrain trade or adversely 
affect the international transfer of technology;  and anti-competitive practices that may result from the 
abuse of intellectual property rights.  Additionall y the Parties shall provide the legal means for  WT/REG293/1 
 Page 27 
 
 
  interested parties to prevent comme rcial use of the country name of the other Party in relation to 
goods in a manner which is likely to mislead consumers as to the origin of the goods. 
65. Article 35 also includes provisions on co-opera tion such as notification of contact points, 
exchange of information concerning the intellect ual property systems, aimed at promoting the 
efficient registration of intellectual property right s;  and other activities and initiatives that may be 
mutually determined by the Parties. 
66. Under Article 36, Turkey recognizes "Pisco" and Chile recognizes "Raki" as geographical 
indications for spirits within the meaning of para graph 1 of Article 22 of the TRIPS Agreement.  
Accordingly, Turkey will not permit the sale of any products as "Pisco" unless it has been manufactured in Chile, according to Chile's laws governing the manufacture of "Pisco", while not 
prejudicing the rights that Turkey may provide, in a ddition to Chile, exclusively to Peru with respect 
to "Pisco".  Chile will not permit the sale of any pr oducts as "Raki" unless it has been manufactured in 
Turkey according to Turkey's laws governing the manufacture of "Raki". 
J. O
THER  
(a) Cooperation 
67. Title IV of the Agreement establishes a framewo rk for co-operation to expand and enhance its 
benefits and to build a strategi c economic partnership between the Parties.  Areas of co-operation 
could include but are not restricted to innovatio n, research and development, agriculture, food 
production and processing, air transport, mining, energy, environment, small and medium sized 
enterprises, tourism, gender issues, education, labour and employment matters, human capital development and cultural co-operation;  such co-operation would be without prejudice to the 
provisions of the "agreement on Trade and Econom ic, Technical and Scientific Co-operation"  
between the Parties.  Co-operation will aim inter alia at;  strengthening and building on existing 
cooperative relationships;  creating new opportuniti es for trade and investment and for promoting 
competitiveness, fostering innovation and encouraging research and development;  supporting the role 
of the private sector in promoting and building strategic alliances to encourage mutual economic 
growth and development;  and increasing the level of, and further developing co-operation between 
the Parties in areas of mutual interest.   
68. The activities themselves will be agreed between  the Parties and could include but are not 
limited to, exchange of people and information;  co-operation in regional and multilateral fora;  
dialogues, conferences and seminars;  development of joint research programmes;  and encouraging 
private sector co-operation.  
69. Co-operation in the area of labour is specifically mentioned, which will aim to promote 
decent work, sound labour policies and practices of each Party's labour systems, improve the 
capacities and capabilities of the Parties and the de velopment and management of human capital for 
greater employability, business excellence and impr oved productivity for the benefit of workers and 
employers, in the context of strengthening bilateral trade and investment relations.  The Parties also 
reaffirm their obligations as members of the IL O and their commitment to the ILO Declaration on 
Fundamental Principles and Rights at Work and its  follow up (1998) and will strive to ensure that 
these principles are included in and protected by their domestic laws.  The Parties also agree to 
co-operation on labour and employment matters of  mutual interest and benefit through jointly 
determined activities which may refer inter alia  to:  decent work including employment, labour 
standards, and social protection and dialogue;  co mpliance and enforcement systems and management 
of labour disputes;  and employment systems, huma n capital development, training and employability.  
Finally, the Parties recognize that it is inappropriate to encourage trade or investment by weakening or WT/REG293/1 
Page 28  
 
  reducing the protections afforded in  domestic labour laws and agree to effectively enforce their labour 
laws in a manner affecting trade between the Parties.
17  
70. Recognizing the importance of strengthening capac ity to protect the environment and promote 
sustainable development together with strengtheni ng bilateral trade and investment relations, the 
Parties reaffirm their intention to continue to pursue environmental protection and to fulfil their 
mutual environmental commitments.  They will al so endeavour to harmonize their environmental 
laws, regulations, policies and pr actices with their international environmental commitments and 
agree that it is inappropriate to set or use their environmental laws, regulati ons, policies and practices 
for trade protectionist purposes or relax or fail to en force or administer their environmental laws and 
regulations to encourage trade and investment. 
71. The aim of environmental co-operation will be to prevent and/or reduce contamination and 
degradation of natural resources and ecosystem s and rational use of ecosystems through new 
programmes and projects dealing inter alia  with the transfer of knowledge and technology.  Fields of 
co-operation could include:  climate change, biod iversity and conservation of natural resources, 
management of hazardous chemicals, air quality, water and waste management, marine and coastal 
ecological conservation and pollution controls, strategic environmental impact assessment and 
improvement of environmental awareness, education and public participation.  New issues could be 
added through existing agreements and a ppropriate implementing arrangements.  
72. The Joint Committee could establish sub-committe es or working groups to implement the 
provisions of Title IV.   
                                                      
17 The Parties clarify that this could mean for in stance that trade or investment should not be 
encouraged by weakening or reducing protection afforded in domestic labour laws.  WT/REG293/1 
 Page 29 
 
 
  ANNEX I 
 
Market access under the Agreement 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and MFN average rates in force on the date of entry into force of the Agreement is shown 
below in Tables AI.1 (for Turkey) a nd A1.2 (for Chile).  The figures are shown for total, agricultural 
and non-agricultural products. 
2. Table AI.1 shows that while Turkey's MFN ta riff for 2011 is 12%, the average preferential 
tariff for imports from Chile as a result of the Agreem ent entering into force was 8.2%, thus providing 
an average margin of preference for Chilean exporte rs of 31.6%.  While the average preferential tariff 
for non-agricultural products fell to 1% compared to  the MFN average of 5.1% and 97.3% of tariffs 
on these products were eliminated by the Agreement,  the average preferential tariff for agricultural 
products is considerably higher at 46.4% (compare d to the MFN average of 46.8%) and only 22.6% of 
tariffs on these products were eliminated.  Chile's average preferential tariff fell to 0.3% for imports 
from Turkey compared to an average MFN tariff of  6% in 2011 when the Agreement entered into 
force, providing Turkish exporters an average margin  of preference of 95%.  Chile eliminated tariffs 
on 94.3% of imports from Turkey in 2011, of wh ich 95.8% of non-agricultural products and 84.6% 
for agricultural products.  At the end of implem entation under the Agreement, Chile would have 
eliminated tariffs on 98.3% of all lines, of whic h 99.9% for non-agricultural products and 88.1% for 
agricultural products. 
Table AI.1 
Turkey: Indicators of MFN tariff rates a nd preferential rates for imports from Chile 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 12.0 15.6 23.2 46.8 54.3 13.7 5.1 6.8 25.3 
Chile 2011 8.2 57.4 84.9 46.4 61.0 22.6 1.0 37.6 97.3 
 
a WTO Definition. Note: For tariff lines subject to TRQs, on ly the out-of-quota duty is included in the tariff-related calculations; for the calc ulation of  
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Turkey. 
 
Table AI.2 
Chile:  Indicators of MFN tariff rates and preferential rates for imports from Turkey 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 6.0 6.0 0.5 6.0 6.0 0.0 6.0 6.0 0.5 
Turkey 2011 0.3 5.2 94.3 0.9 5.8 84.6 0.2 4.8 95.8 
 2012 0.2 4.4 94.3 0.9 5.6 84.6 0.2 3.7 95.8 
 2013 0.2 3.6 94.3 0.8 5.4 84.6 0.1 2.5 95.8 
 2014 0.2 2.7 94.3 0.8 5.2 84.6 0.1 1.3 95.8 
 2015 0.1 5.0 97.8 0.8 5.0 84.6 0.0 6.0 99.9 
 2016 0.1 4.8 97.8 0.7 4.8 84.6 0.0 6.0 99.9 
 2017 0.1 6.0 98.3 0.7 6.0 88.1 0.0 6.0 99.9 
a WTO Definition. Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Chile. WT/REG293/1 
Page 30  
 
  3. Tables AI.3 and AI.4 below show market acc ess opportunities respectively for Chile's top 
25 exports to Turkey and for Turkey's top 25 export s to Chile.  The tables show how many of the top 
25 exports have improved market access to the pa rtner's market as a result of the Agreement. 
4. Of Chile's top 25 export products during 2 008-2010 which accounted for over 74% of its 
global exports, 28 tariff lines accounting for 63.1% of its global exports were already duty free on an 
MFN basis in 2011.  Of the 135 lines that were dutiable in 2011, 23 lines, accounting for 4.1% of 
Chile's global exports became duty free for imports from Chile, while 112 tariff lines will continue to 
remain subject to duties once the Agreement is impl emented.  The lines which will continue to remain 
dutiable include 57 lines under HS 220421 (wine) wh ich face an average MFN duty of 70%, five lines 
relating to apples which face an average applied MFN duty of 60.3%, 2 lines on grapes facing average 
applied MFN rates of 54.9%, 46 tariff lines relating to  fish products with an average applied MFN 
duty of 30%. 
Table AI.3 – Turkey: Market access opportunities  under the agreement for Chile's top 25 exports 
Chile's top export products in 2008-2010 Access Conditions to Turkey's import markets 
MFN (2011) 
Duty-
free in 
2011 Remain 
Dutiable Avg. 
applied 
rate 
(%) Number of tariff 
lines 
HS number and description of the product  Share in global 
exports (%)  Duty-
free Dutiable  
740311 -- Cathodes and sections  of cathodes 31.0 0.0 2    
260300 Copper ores and concentrates. 16.6 0.0 1    
740200 Unrefined copper; copper anodes for 
electrolytic refining. 3.7 0.0 3    
261310 - Roasted 2.5 0.0 1    
220421 -- In containers holding 2 l or less 1.8 70.0  57  57 
470321 -- Coniferous 1.8 0.0 1    
080610 - Fresh 1.8 54.9  2  2 
470329 -- Non-coniferous 1.7 0.0 1    
710812 -- Other unwrought forms 1.2 0.0 1    
440710 - Coniferous 1.0 0.0 9    
740319 -- Other 1.0 0.0 2    
720270 - Ferro-molybdenum 1.0 2.7  1 1  
080810 - Apples 1.0 60.3  5  5 
740400 Copper waste and scrap. 0.9 0.0 3    
030429 -- Other 0.9 30.0  33  33 
230120 - Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 0.8 2.0  2  2 
740811 -- Of which the maximum cross-
sectional dimension exceeds 6 mm 0.7 4.8  2 2  
030419 -- Other 0.7 30.0  13  13 
271011 -- Light oils and preparations 0.6 4.7  17 17  
283421 -- Of potassium 0.6 5.5  1 1  
260111 -- Non-agglomerated 0.6 1.0  1 1  
261390 - Other 0.6 0.0 1    
280120 - Iodine 0.6 0.0 2    
260112 -- Agglomerated 0.6 1.0  1 1  
710691 -- Unwrought 0.5 0.0 1    
Total of above  74.2  28 135 23 112 
 
Note: Based on HS 2007 nomenclature.  
Source : WTO estimates based on data provided by Turkey and UNSD, Comtrade data. 
 
5. Table AI.4 shows that of Turkey's top 25 gl obal exports, which correspond to 34.8% of its 
global exports, two lines were already duty free (oil  tankers) for export to Chile while 112 lines were 
subject to duties.  As a result of the Agreement,  111 of these lines became duty free in 2011.  One 
line, relating to cement remains subject to duties and will be liberalized in 2015 as a result of which 
all of Turkey's top 25 exports will ha ve duty free access to the Chilean market.  WT/REG293/1 
 Page 31 
 
 
  Table AI.4 – Chile: Market access o pportunities under the agreement for Tu rkey's top 25 exports to the world 
Turkey's top export products in 2008-2010  Access Conditions to Chile's import markets
MFN (2011)Duty-free in  
HS number and description of the product  Share in 
global 
exports (%)  Average MFN 
applied rate 
(%) No. of tariff lines  
Duty-free Dutiable 2011 2015  
721420 - containing indent ations, ribs, grooves or 
other deformations produced during the 
rolling process or twisted after rolling 4.5 6.0  1 1  
710812 -- other unwrought forms 3.0 6.0  1 1  
271019 -- other 2.7 6.0  13 13  
870421 -- g.v.w. not exceeding 5 tonnes 2.7 6.0  13 13  
870331 -- of a cylinder capacity not exceeding 
1,500 cc 1.7 6.0  4 4  
610910 - of cotton 1.7 6.0  4 4  
852872 -- other, colour 1.5 6.0  4 4  
870323 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 3,000 cc 1.5 6.0  6 6  
870322 -- of a cylinder capacity exceeding 1,000 
cc but not exceeding 1,500 cc 1.5 6.0  6 6  
271011 -- light oils and preparations 1.4 6.0  11 11  
711319 -- of other precious metal, whether or not 
plated or clad with precious metal 1.2 6.0  1 1  
720711 -- of rectangular (including square) cross-
section, the width measuring less than twice the thickness 1.1 6.0  1 1  
870332 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 2,500 cc 1.0 6.0  6 6  
620462 -- of cotton 0.9 6.0  5 5  
870210 - with compression-ignition internal 
combustion piston engine (diesel or semi-diesel) 0.9 6.0  4 4  
854449 -- other 0.9 6.0  5 5  
620342 -- of cotton 0.9 6.0  5 5  
840999 -- other 0.8 6.0  4 4  
890120 - tankers 0.8 6.0 2 1 1  
252329 -- other 0.8 6.0  1  1 
570242 -- of man-made textile materials 0.7 6.0  3 3  
080222 -- shelled 0.7 6.0  1 1  
870899 -- other 0.6 6.0  3 3  
610990 - of other textile materials 0.6 6.0  8 8  
611020 - of cotton 0.6 6.0  1 1  
Total of above 34.8  2 112 111 1 
 
Based on the HS 2007 nomenclature.  
Source : WTO estimates based on data provided by  Chile and UNSD, Comtrade database. 
 WT/REG293/1 
Page 32  
 
  ANNEX II 
 
List of products originating in Chile subject to "EU Treatment" 
 
 
HS CODE DESCRIPTION Preferential Customs Duty  
EU TREATMENT  
MFN 
 
0710.40 Sweet corn €2.91/100 kg/net 5.1% + €2.91/100 kg/net 
1517.10.10 Containing, by weight, 
more than 10% but not more than 15% of milk fats€25.82/100 kg/net 8.3% + €2.91/100 kg/net 
 
1517.90.10 Containing, by weight, 
more than 10% but not 
more than 15% of milk fats€25.82/100 kg/net 83% + €2.91/100 kg/net 
1704.90 (excl. 
1704.90.10) Other  T2 
(agri. Component,  
T2: reduced specific duty)  9% + T1 (agri. component) 
1806.31 Filled T2 
(agri. Component,  
T2: reduced specific duty) 8.3% + T1 (agri. component) 
1806.32 Not filled T2 
(agri. Component,  
T2: reduced specific duty) 8.3% + T1 (agri. component) 
1806.90 Other T2 
(agri. Component,  
T2: reduced specific duty) 8.3% + T1 (agri. component) 
1901.10 Preparations for infant use, 
put up for retail sale T2 
(agri. Component,  
T2: reduced specific duty) 7.6% + T1 (agri. component) 
1901.90 Other   
1901.90.11.00  €5.75/100 kg/net 5.1% + €35.45/100 kg/net 
1901.90.19.00  €4.69/100 kg/net 5.1% + €21.85/100 kg/net 
1901.90.99.10  T2 
(agri. component) 7.6% + T2  
(agri. component) 
1901.90.99.20  T2 
(agri. component) 7.6% + T2  
(agri. component) 
1901.90.99.90.11  zero 7.6% 
1901.90.99.90.12  zero 7.6% 
1901.90.99.90.13  zero 7.6% 
1901.90.99.90.19  T2 
(agri. component) 7.6% + T2  
(agri. component) 
1902.19 Other   
1902.19.10.00.00  €10.67/100 kg/net 7.7% + €10.67/100 kg/net 
1902.19.90.00.11  €11.37/100 kg/net 7.7% + €11.37/100 kg/net 
1902.19.90.00.12  €11.37/100 kg/net 7.7% + €11.37/100 kg/net 
1902.19.90.00.13  zero 7.7% 
1902.19.90.00.19  €11.37/100 kg/net 7.7% + €11.37/100 kg/net 
1904.10 Prepared foods obtained by 
the swelling or roasting of 
cereals or cereal products   
1904.10.10.10  €6.19/100 kg/net 3.8% + €55.63/100 kg/net 
1904.10.10.90  €6.19/100 kg/net 3.8% + €55.63/100 kg/net 
1904.10.30.10  €44.21/100 kg/net 5.1% + €44.21/100 kg/net  WT/REG293/1 
 Page 33 
 
 
  HS CODE DESCRIPTION Preferential Customs Duty  
EU TREATMENT  
MFN 
 
1904.10.30.90  €44.21/100 kg/net 5.1% + €44.21/100 kg/net 
1904.10.90.10  €19.94/100 kg/net 5.1% + €62.62/100 kg/net 
1904.10.90.90  €19.94/100 kg/net 5.1% + €62.62/100 kg/net 
1904.90 Other   
1904.90.10.10  €44.21/100 kg/net 8.3% + €59/100 kg/net 
1904.90.10.90  €44.21/100 kg/net 8.3% + €53.3/100 kg/net 
1904.90.80.10  €11.11/100 kg/net 8.3% + €22.33/100 kg/net 
1904.90.80.90  €11.11/100 kg/net 8.3% + €22.33/100 kg/net 
1905.31 Sweet biscuits T2 
(agri. component,  
T2: reduced specific duty) 9% + T1 (agri. component) 
1905.31.99.00.13  zero 9% 
1905.32 Waffles and wafers T2 
(agri. component,  
T2: reduced specific duty) 9% + T1 (agri. component) 
1905.32.99.00.11  zero 9% 
1905.90 Other   
1905.90.10.00  €12.49/100 kg/net 3.8% + €62.17/100 kg/net 
1905.90.20.00  €18.74/100 kg/net 4.5% + €49.1/100 kg/net 
1905.90.30.00 T2 
(agri. component,  
T2: reduced specific duty) 9.7% + T1 (agri. component) 
2001.90.30  Sweetcorn (Zea mays var. 
saccharata) €2.91/100 kg/net 5.1% + €28.43/100 kg/net 
2001.90.40 Yams, sweet potatoes and 
similar edible parts of plants containing 5% or 
more by weight of starch €1.16/100 kg/net 8.3% + €16.46/100 kg/net 
2102.10.31 Dried €59.4/100 kg/net 12% + €59.4/100 kg/net 
2102.10.39  Other €12.47/100 kg/net 12% + €12.47/100 kg/net 
2105.00 Ice cream and other edible 
ice, whether or not containing cocoa   
2105.00.10  €23.26/100 kg/net 8.6% + €64.3/100 kg/net 
2105.00.91  €40.06/100 kg/net 8% + €90.46/100 kg/net 
2105.00.99  €57.13/100 kg/net 7.9% + €57.13/100 kg/net 
2106.90.98 Other T2 
(agri. component,  
T2: reduced specific duty) 9% + T1 (agri. component) 
2202.90.91 Less than 0.2% €14.39/100 kg/net 6.4% + €51.23/100 kg/net 
2202.90.95 0.2% or more but less than 
2% €12.19/100 kg/net 5.5% + €40.79/100 kg/net 
2202.90.99 2% or more €22.16/100 kg/net 5.4% + €47.44/100 kg/net 
 
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