WORLD TRADE  
ORGANIZATION  WT/TPR/M/220 
17 December 2009 
 (09-6576) 
Trade Policy Review Body 
7 and 9 October 2009  
 
 
 
TRADE POLICY REVIEW 
 
CHILE 
 
Minutes of Meeting  
 
Chairperson:  H.E. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHILE 4 
III. STATEMENT BY THE DISCUSSANT (HE MR ECKART GUTH 
(EUROPEAN COMMUNITIES)) 7 
IV. STATEMENTS BY MEMBERS 11 
V. REPLIES BY THE REPRESENTATIVE OF CHILE AND ADDITIONAL COMMENTS 43 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 52 
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Chile are 
reproduced in document WT/TPR/M/220/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/220 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fourth Trade Policy Review of Chile  was held on 7 and 9 October 2009.  The 
Chairperson, H.E. Mr Istvan Major (Hungary), welcomed the delegation of Chile, headed by 
Ms Ana Novik, Director of Multilateral Economic Affa irs in the Ministry of Foreign Affairs, and the 
Discussant, H.E. Mr Eckart Guth (European Communities). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The Report by Chile is contained in document WT/TPR/G/220 and that of the WTO Secretariat in WT/TPR/S/220. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegati on of Chile:  Mexico, China, Turkey, Ecuador, 
Chinese Taipei, Thailand, New Zealand, India, Costa Rica, Peru, Switzerland, Australia, the 
European Communities, Argentina, the Republic of Korea, Hong Kong, China, Norway, Japan, 
Panama, the United States, Canada and Colombia.  All advance questions, as well as the responses 
received from the delegation of Chile, are reproduced in document WT/TPR/M/220/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  
Brazil, Malaysia and Singapore.  Additional ques tions had been received from Mexico, China and 
Canada after the two-week deadline. 
5. The Chairperson said that he had read with great  interest the Reports prepared by Chile and 
the Secretariat.  He commended Chile on the notable progress it had made since its previous Review in 2003.  An open trade and investment re gime and sound macroec onomic management had 
underpinned solid economic growth a nd allowed Chile to attain one of  the highest per capita incomes 
in Latin America.  Both the Government and Secr etariat Reports referred to the measures Chile had 
put in place in response to the global financial crisis , which might lead to an overall GDP contraction 
in 2009.  In this regard, he asked Chile whet her it was considering any additional measures to 
overcome the crisis and make the economy  more resilient to external shocks. 
6. The Government and Secretariat Reports also emphasized Chile's strong commitment to the 
multilateral trading system.  The Secretariat's Re port further observed that applied tariffs were 
appreciably lower than bound rates, while in service s activities market access was considerably more 
liberal than Chile's GATS commitments.  On its part, the Government's Report mentioned that for 
Chile the importance of the WTO lay in the binding disciplines it established.  In this respect, he 
indicated that Members would be interested in h earing whether Chile would consider binding in WTO 
its generally liberal trade and investment regime, wi th the dual aim of giving greater predictability to 
its own regime, and of strengtheni ng the multilateral trading system. 
7. The Secretariat's Report also noted that within Chile's overall liberal investment regime there 
were a few exceptions in areas such as fisheries, ai r and maritime transport, and audiovisual services.  
He asked Chile whether it was envisagi ng any policy changes in those areas. WT/TPR/M/220 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHILE 
8. Before making my brief presentation, I should like to emphasize that, for Chile, this is a 
highly important exercise.  It is the third time th at we are taking part and each time that we have 
participated it has been an interesting process at th e national level because it involves an effort by all 
Ministries in examining to a certain degree the consis tency of our trade policy, and at the same time it 
is an excellent way of knowing how other Members view the implementation of our trade policies. 
9. Essentially, I am going to refer to three issues.  Firstly, we shall look at the economic crisis 
and its impact on Chile's economy, th en we shall review Chile's integr ation at the global level, and we 
shall conclude with Chile's trade policy. 
10. The economic crisis is unprecedented because of it s depth, its extent and the rapidity with 
which it has spread.  In terms of extent, over 80 pe r cent of countries have been affected by the 
current crisis.  This alone is comparable to what  happened during the Great Depression.  This crisis 
exceeds what occurred during the Asian crisis a nd for the first time since 1946 the global economy 
will shrink by minus 1.4 per cent according to IMF sources.  The unprecedented levels of fiscal 
stimulus and monetary policies, combined with in ternational coordination among all countries, have 
prevented us from experiencing an even more serious depression. 
11. As Chile is a country that is very open to the world, it has been particularly affected by the 
crisis.  The decline in international demand and lowe r prices for our products, have been reflected in a 
drop in exports.  During the first half of 2009, the exports/GDP ratio fell by some 20 per cent. 
12. Despite the foregoing, Chile will not be one of th e countries most affected by the crisis.  The 
IMF forecasts that in 2009 Chile's growth will be be tween 0 to 0.2 per cent.  Why has a country as 
open as Chile, despite the fact that we have been badly hit by the decline in exports, not been so 
affected by the crisis?  Basically, we have been ab le to minimize the impact of the crisis because of 
three factors:  (1) an institutional structure that  guarantees macroeconomic stability;  (2) the crisis 
found Chile in a strong position;  and (3) we im plemented counter-cyclical policies in time. 
13. Let us look briefly at each of these factors that  have allowed Chile to face up to the crisis. 
14. As regards the institutional structure that  guarantees macroeconomic stability, since 2001 
Chile has implemented fiscal rules that are independent of economic cycles.  It is known as the structural surplus rule and has been pinpointed in both this Review and the previous one.  A second 
element is that Chile has an autono mous Central Bank whose objective, inter alia , is to keep inflation 
rates down, and it is a highly credible institution A third element is that we have a floating exchange 
rate system.  The Central Bank intervenes in the ex change market on an exceptional basis, but does so 
clearly defining the time-frames and amounts involve d.  Lastly, Chile's financial system is duly 
regulated. 
15. In the 1980s, Chile experienced a major financia l crisis that obliged it to create a strong 
regulatory system and we now have three supervis ory authorities, namely, the Supervisory Authority 
for Securities, for Banks and for Pensions, which play  a key role in ensuring that this system runs 
properly. 
16. In addition to the institutional structure, the crisis found Chile in a strong position because at 
the end of 2008 our public debt/GDP ratio was only 7 per cent.  We were able to confront the crisis 
with our own resources precisely because the structural  surplus rule had enabled us to save in times of 
plenty.  When the crisis started, Chile ha d accumulated over US$20 billi on in sovereign funds 
invested prudently.  WT/TPR/M/220 
 Page 5 
 
 
  17. Lastly, Chile implements counter-cyclical polici es appropriately:  monetary policies, reduced 
interest rates and fiscal policies.  The fiscal packag e has been in proportion to  the decline in exports. 
18. The Ministry of Finance applied a balanced fi scal package that included public investment, 
lower taxes to boost private investment and transfer  of resources to low-income families in order to 
encourage consumption.  Because of these three fa ctors, the Chilean economy is showing signs of 
recovery.  During the second quarter of 2009, there we re positive rates of growth in consumption and 
construction, which are the first to react.  Anot her very important element is that in Chile 
entrepreneurs and consumers are more optimistic that  the crisis is blowing over and, as our Minister 
of Finance said last week at ECLAC, the expectations  of economic agents are vital in order to be able 
to recover from the crisis. 
19. We shall now look at Chile's integration in th e world.  Chile is highly dependent on foreign 
trade.  Trade in goods and services accounts for 80  per cent of the GDP.  The Secretariat's Report 
shows a figure of 73 per cent of GDP, but this is because it only takes into account trade in services, but if trade in goods and trade in services are a dded together, the figure is 80 per cent of the GDP. 
20. Another interesting point is that alt hough Chile remains a major exporter of goods, 
commodities and copper in particular, as is also mentioned in the Report, over the years greater 
diversification has been noted, both as regards the products exported, the number of exporters and the 
countries of destination for Chile's exports.  This is  a result of our trade policy.  Chile has an open 
trade policy that depends on international trade.  As a small country, we need clear rules and 
disciplines that provide such trade with certainty. 
21. One interesting aspect in Chile is the domestic political consensus that exists regarding our 
trade policy.  For Chile, the ideal would be a si ngle agreement under which Members apply no tariffs 
or tariff-equivalent measures.  The WTO is going in the right direction, but not at the speed which a 
country such as ours would like.  We therefor e follow a policy that has three dimensions. 
22. Regarding unilateral openness, Chile considers that low and uniform tariffs are the most 
efficient way of allocating resources and between 1999 and 2003 it therefore lowered tariffs from 
11 per cent to 6 per cent, the level th at has been in effect since 2003.   We have worked to eliminate 
non-tariff barriers, we have streamlined regulations, e fforts have been made to facilitate trade and the 
use of international standards to define our sanitary  measures and other types of measure.  We have 
not only achieved unilateral openness in relation to  goods but also in services and investment.  
Nevertheless, unilateral liberalization does not improve  terms of access to third markets so we must 
have bilateral and mu ltilateral negotiations. 
23. In the case of bilateral negotiations, we have ag reements with most of our trading partners 
because this enables us to minimize trade distortion.   We seek to ensure th at these agreements are 
comprehensive.  In other words, that they not  only cover goods but also services, investment, 
government procurement, intellectual property, comp etition, cooperation, labour and the environment, 
inter alia .  We are also making efforts to phase out all tariffs, and we want strong disciplines that are 
WTO-consistent.  The end result is that we have 21 agreements with 57 countries and over 90 per cent 
of Chile's trade is with preferential partners;  we are currently negotiating with Viet Nam and 
Malaysia.  Taking into account all these agreements , the average effective tariff applied is 1.3 per 
cent. 
24. At the multilateral level, Chile is an active Me mber and participates in the WTO, the World 
Intellectual Property Organization (WIPO), the Asia-Pacific Economic Cooperation forum (APEC) 
and the Latin American Integration Association (LAI A).  We are currently in the process of acceding 
to the Organisation for Economic Co-operation and Development (OECD), which we hope to join in 
December this year or in early 20 10;  we have been the subject of several reviews in this Organization WT/TPR/M/220 
Page 6  
 
  and we are moving ahead successfully towards accession.  Of all the multilateral forums, there can be 
no doubt that for Chile the WTO is key.  We belie ve in the multilateral trading system and we depend 
on it.  We are strongly committed to the WTO, its  disciplines are essential both for our domestic 
policies and when we negotiate our trade agreements.  We take an active part in negotiations in this 
forum in various areas, constantly seeking ambitious results.  We hope that our Minister of Finance 
will come to Geneva in December to chair the WT O Ministerial Conference.  For us, the success of 
the WTO negotiations is crucial because there are issues  that can only be resolved in this forum.  I 
refer to the reduction of agricultural subsidies, the elimination or reduction of fisheries subsidies and 
also a decrease in the abusive use of anti-dumping measures.  WT/TPR/M/220 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR ECKART GUTH (EUROPEAN 
COMMUNITIES)) 
Geography  
 
25. Unfortunately, I have never been to Chile, but I am told that it is a country of startling 
contrasts and incredible beauty, with attracti ons ranging from the towering volcanic peaks of the 
Andes to the ancient forests of the Lake Dist rict.  Chile stretches over 4,300 km. along the 
south-western coast of South America.  This is a distance roughly the same as from Geneva to the 
Arctic Circle in Greenland - if we went to the North - or to Mecca to the south.  By European 
standards that is just a little bit too much.  But we  are not here today to wonder about the shape of 
Chile but rather to look at its trade policy. 
Economy - history and current environment 
 
26. Chile's economic history is no less interesting.  The review period since Chile's previous TPR 
in 2003 is not long enough to appreciate full y Chile's extraordinary economic performance and the 
"Miracle of Chile".  One should look at the whole film and not only the picture, capturing the period 
between 2003 and 2009. 
27. First, Chile is really to be admired for learning the lessons from its roller coaster history and 
implementing economic reforms that included - at difficult political times - deregulation and privatization under the advice of the so-called "Chica go Boys".  Chile's reputation as a role model for 
economic reform has strengthened ever since.  Today, Chile is a market-oriented economy 
characterized by a high level of foreign trade.  The reasons for Chile's ec onomic success include its 
adoption of an outward-oriented growth strategy si nce the mid-1970s.  It is based on activities in the 
primary sector and in resource-processing manufacturing subsectors. 
28. At the end of the 1990s, Chile experienced nega tive economic growth for the first time in 
more than 15 years owing to the impact of a sever e drought.  But despite the effects of that recession, 
Chile maintained its reputation for strong financia l institutions and sound policy that have given it the 
strongest sovereign bond rating in South America.  By the end of 1999, exports and economic activity 
had begun to recover, and growth rebounded in 2000. 
29. The Chilean economy grew at an annual average rate of 4.8 per cent between 2003 and 2008, 
thus reflecting strong domestic demand and, to a l esser degree, export growth and stepped-up foreign 
direct investment (FDI).  Sound macroeconomic po licies and a favourable external environment have 
underpinned solid economic growth.  Copper accounts for 55 per cent of  total exports, yet Chile has 
managed successfully to develop new agro-indus tries such as wine, fruit and sea products, like 
salmon.  There is, nevertheless, a need to broaden the export base and increase added value. 
30. With an environment extremely conducive to private investment, Ch ile is among the best 
countries with which to do business in Latin America.  It is ranked 14
th out of 155 nations in terms of 
economic freedom.  Chile represents regulatory qua lity, rule of law, government effectiveness and 
low corruption levels, and it is among the world's most transparent countries. 
31. In fact, taking all the above into consideration and when reading the first paragraphs of the 
Secretariat's Report, it seems as though a perfect WTO Member is being described here.  In short:  the trade and investment regime remains open, transp arent, and predictable;  an almost uniform 
MFN tariff is applied, and national treatment is gran ted to foreign investors in all but a few cases;  
measures to modernize customs and facilitate trade have been adopted since the previous Review;  
some import taxes and export subsidies have been  abolished;  and significant reforms in the 
competition policy, government pr ocurement and intellectual propert y regimes have been introduced. WT/TPR/M/220 
Page 8  
 
  32. But nobody is perfect.  As is the case with ever y model student, there is always room to do 
better.  Therefore, I would now like to turn to some  specific areas of Chile's trade policy where further 
improvement or at least some clarification should be sought. 
Economic environment and trade policy regime 
 
Regional trade agreements (RTAs) 
 
33. RTAs have continued to play a central role in Chile's liberalization strategy.  Chile has signed 
21 preferential trade agreements with 57 trading partners. 
34. As a result, just over 92 per cent of Chile's  merchandise trade is now carried out with 
preferential partners and therefore its effective tari ff on imports comes close to 1 per cent.  Chile's 
RTAs aim to be ambitious and comprehensive, whic h is in line with Chile's strong advocacy of the 
high importance of quality FTAs.  It is fair to not e that, while it is true that Chile has an active 
bilateral agenda, it remains strongl y committed to the multilateral trading system, where it participates 
actively in the RTA-related multilateral discussions. 
35. In fact, Chile is one of the WTO Members that continues to be committed to the Doha 
Development Agenda (DDA) Negotiating Group on Ru les for RTAs and is continuously trying to 
encourage Members to discuss and clarify RTA ru les.  However, we can also infer from the 
Secretariat's Report that not all Chile's RTAs are st ate-of-the-art:  some partial scope agreements are 
still maintained, and a recent agreement h as been notified under the Enabling Clause. 
36. In this context, I would like to invite Chile to  share with us some details regarding its overall 
RTA strategy, which appears to combine both bilate ral and multilateral objectives.  It would also be 
interesting to hear how Chile reconciles possible c onflicts or inconsistencie s between its bilateral 
agenda for trade and its multilateral agenda. 
Trade policies and practices by measure 
 
(1) Tariffs and the price band system 
 
37. Chile has a single MFN tariff rate of 6 per cent - the tariff rate is virtually standard, although 
there are a few exceptions for some agricultural pr oducts, which are imposed at 12.5 per cent or are 
subject to a price band system, as well as some products that enter duty free (aircraft, boats and some capital goods). 
38. Chile has continued to liberalize its trade and investment regime since 2003, mostly through 
the conclusion of preferential agreements.  It has also pursued unilateral trade liberalization, including 
the recent elimination of tariffs on a wide range  of capital goods and spare parts.  One wonders, 
however, why there is a ban on importing used cars, which means more than one year old, but no prohibition on selling or buying used cars in the domestic market. 
39. In the light of this, and considering that Chile has been so liberal in its bilateral and regional 
agenda, I would like to ask whether Chile considered  being more forthcoming also in the multilateral 
context? 
40. Continuing on this topic, there is a system of  price bands applied to imports of wheat, wheat 
flour and sugar, which vary with changes in interna tional market prices.  Reflecting high world prices, 
the system has resulted in applied tariffs below 6 pe r cent for much of the review period.  However, 
two Panels have found this system WTO inconsis tent.  A draft law was introduced in Congress in 
2007 to bring the system into conformity with WTO rules by replacing the price band system for  WT/TPR/M/220 
 Page 9 
 
 
  wheat and wheat flour with compound tariffs.  Could Chile explain the possible benefits arising from 
a change in this system? 
(2) Intellectual property 
 
41. A word now on intellectual property.  Since its previous Review, Chile has made some 
reforms to its legislation with the aim of strengtheni ng its intellectual property regime and bringing it 
into line with its international commitments.  In so me instances, Chile's legislation goes further than 
the obligations under the TRIPS Agreement, for exam ple, in certain areas relating to copyright and 
industrial property.  The Report also refers to new legislation on geographical  indications (GIs), in 
particular to ensure co existence between trademarks and GIs. 
42. Could Chile elaborate further on how this  new legislation on intellectual property 
rights (IPRs) is being enforced and what are the e ffects?  As we know, Chile is doing very well with 
its wine exports, which is understandable as Chile's excellent wine is easily recognizable at some 
blind tastings here in Geneva.  However, I would also be very interested in knowing Chile's view - 
and you can guess why I am interested - on the exte nt to which it thinks the solid GI protection 
legislation has contributed to its success in exporting the wine? 
(3) Safeguard measures 
 
43. According to the Secretariat's Report, during the period under review, there were two cases 
before the WTO dispute settlement mechanism conc erning a safeguard measure imposed by Chile on 
imports of certain dairy products.  Among the compla ints raised were the lack of an adequate 
definition of like or directly competitive products , the absence of evidence proving an increase in 
imports, the significant overall impairment of the domestic industry and the causal link between them. 
44. According to the Government's Report, in 2008 the National Congress approved the creation 
of Tax and Customs Tribunals.  They are meant to  be judicial bodies independent of the regulatory 
agencies and designed to be charged with settli ng disputes between taxpayers and the customs 
authorities in matters of classification, valuation, or igin and the like.  The tribunals are expected to 
become operational between 2009 and 2013. 
45. Here I would like to ask for Chile's views a bout the expectations for these bodies, notably 
from the point of view of improving the way in whic h the need for safeguards is determined, and the 
governance of the safeguard process in general. 
Sectoral policies 
 
Services 
 
46. Chile's services sector can be described as ge nerally open - although the actual level of 
liberalization is not reflected in its GATS commitments. 
47. Concessions to operate public telecommunicat ions services are granted to companies 
established in Chile, independently of the origin of  capital.  Foreign banks and insurance companies 
may provide services in Chile through locally-incorpo rated companies or independent branches.  As 
of 2007, cross-border supply of international mar itime and air transport insurance has been allowed 
with foreign companies from countries with which Chile  has a treaty.  Chile practises an "open skies" 
air transport policy based on reciprocity.  Maritime  cabotage is reserved to ships registered by 
companies with at least 50 per cent of capital in Chilean hands. WT/TPR/M/220 
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  48. According to the Government's Report, Chile  is seeking greater access to the markets for 
professional services, sea and air transport, as well as information technology (IT) services.  Would Chile consider providing some examples of its ow n plans to further reflect the existing level of 
liberalization and the liberal approach it has take n in its bilateral and regional agenda in its 
multilateral commitments in the future? 
New challenges now and for the future 
 
Economic and financial crisis 
 
49. By mid-2008, the onset of the global economic crisis was affecting Chile - notably through a 
two-thirds fall in the price of coppe r.  Real GDP growth in 2008 fell to 2.9 per cent.  Growth forecasts 
have been adjusted downwards, with the OECD pr edicting a 1.6 per cent decrease in GDP in 2009 
and recovery to 3 per cent growth in 2010. 
50. However, despite the risks posed by havi ng a small, open economy highly dependent on 
copper and other products whose prices are volatile, Chile reaped the benefits of the prudent fiscal 
rule it adopted in 2000.  This allows for counter-c yclical fiscal measures to be taken when needed 
through increased government spending of copper reve nues saved in a sovereign wealth fund.  For 
this, Chile has earned widespread praise for its  assured economic policy management during the 
crisis. 
51. In addition, successive packages of measures have been announced from late 2008 onwards, 
including a US$1 billion investment package for the State-owned copper company CODELCO, major 
new infrastructure projects, extra benefits for poor er households and unemployed youth, tax cuts and 
credit initiatives for small businesses and new vocationa l training and employment measures based on 
a tripartite agreement. 
Challenges for the future 
 52. Chile is in the middle of several important cro ss-roads at the moment.  With the presidential 
and congressional elections taking place in December and seeking to join the OECD, Chile needs to 
be ready to face new challenges in the future. 
53. Chile's per capita GDP in 2008 was some US$10,087,  one of the highest in Latin America.  
However, the benchmark of comparison will change  with OECD membership - its per capita income 
is still considerably less than the OECD average and income inequality  is double the OECD average.  
Since 2003, the percentage of Chileans living in poverty has decreased substantially, achieving the 
lowest poverty rate in the Latin America and Caribb ean region, but income distribution is still highly 
unequal. 
54. Income distribution, human capital and lack of  innovation are major challenges facing Chile.  
Adjustments in its infrastructure, social  and educational system will be needed. 
55. However, when looking back to the past tw o decades - a period during which Chile became 
the region's big success story, by adding an increasingly robust democracy and welfare provision to its free-market economic policies, inserting itself ac tively into the international community, and 
remaining committed to the WTO and to the Doha Round  - looking back at all this, I believe we can 
be fairly certain that the miracle of Chile will continue also in the future.  WT/TPR/M/220 
 Page 11 
 
 
  IV. STATEMENTS BY MEMBERS 
MEXICO 
 
Successes and challenges in Chile's economy 
 56. Firstly, I should like to highlight the exce llent performance of Chile's economy from 2003 to 
2008, when it grew at an annual average rate of 4.8 per cent.  A sound macroeconomic policy and its 
openness policies, both as regards trade and investme nt, have enabled Chile to achieve sustained 
growth in recent years.  This economic growth, comb ined with domestic redistribution policies, have 
led to a significant reduction in poverty levels, with  7 per cent of its population moving out of poverty 
between 2000 and 2008.  Moreover, the implem entation of decisive policies for the most 
disadvantaged sectors of the population has allowe d Chile to remain at the top of the human 
development indicators, with the lowest level of poverty in Latin America. 
57. Like the rest of the world, Chile  has felt the effects of the curre nt economic crisis.  Thanks to 
its sound fiscal and monetary policies, however, Chile 's economy has had a margin of manoeuvre to 
deal with the crisis.  Using the public funds accumula ted in periods of expans ion, mainly derived from 
the high global price for copper, the Government has been able to implement a counter-cyclical fiscal 
policy to counteract the economic downturn and lay down the bases for rapid economic recovery. 
58. In view of the pressures put on governments to implement protectionist measures as a result 
of the economic crisis, my delegation would like to congratulate Chile on its firm commitment to 
market liberalization, as shown in the reports of the Director-General, Mr Pascal Lamy, on the 
financial and economic crisis and recent international trade-relate d developments.  In unfavourable 
economic times, Chile has shown ex emplary consistency in following a trade policy committed to the 
multilateral trading system. 
59. We also welcome the adoption of measures to facilitate trade and to improve customs 
operations, particularly through the adoption of a com puterized system for the entry and exit of goods 
and the creation of customs tribunals.  We congr atulate the Chilean Government on the introduction 
of substantive reforms to its competition policy, especially the creation of the Competition Tribunal, 
and on the improvements to its gove rnment procurement procedures. 
60. After reviewing the impressive achievements of Chile's economy, I should also like to 
mention some challenges it will face in years to come.  Chile is a net importer of energy and 
two-thirds of the energy it consumes comes fro m abroad.  Although Chile has intervened in the 
domestic market to stabilize domestic prices of ce rtain fuels, it faces the challenge of supplying 
energy, notably electricity, at reasonable cost in order to boost the competitiveness of its 
manufacturing sector, which has felt the impact sin ce 2000, especially in those sectors that make 
intensive use of this input.  We are fully conf ident that the Chilean Government will take the 
measures needed to prevent the supply and cost of energy becoming a bottleneck that hinders 
encouragement of sustained economic growth. 
Trade and sectoral policy 
 
61. Regarding its tariff policy, since 2003 Chile has a pplied a single MFN tariff of 6 per cent and 
has a straightforward and neutral tariff structur e, with a few exceptions for certain agricultural 
products such as wheat, sugar and poultry products.  Th e average bound rate is 25.1 per cent, so there 
is a very broad margin for Chile to bridge the gap between the bound and applied rates in the current 
negotiating round, thereby increasing certainty for tho se of its trading partners with which it has not 
signed FTAs. WT/TPR/M/220 
Page 12  
 
  62. The agricultural and forestry sector plays a ke y role in Chile's economy and in its export 
sector.  During the period under review, this sector grew  at an annual average real rate of 5.5 per cent.  
Agricultural and forestry products accounted for 19 pe r cent of the Chilean economy's total exports in 
2008.  The increase in this sector's exports has be en boosted by the sale of wine and fruit abroad.  
Chile is the world's fifth largest exporter of wine a nd the leading exporter of fruit in South America.  
Fishing and aquaculture also make a large contributi on to the growth in Chile's exports.  It should be 
noted that Chile is the second largest producer of fa rmed salmon in the world, after Norway, and has a 
35 per cent share of the global market. 
63. The services sector is also making a large cont ribution to Chile's economy.  In 2008, it 
accounted for 67 per cent of the GDP and employed  78 per cent of the labour force.  During the 
Uruguay Round negotiations, Chile only made speci fic commitments in five of the 12 services 
sectors.  Although Chile took part in the negotiations  on the Fourth Protocol to the GATS and has an 
open telecommunications sector, it did not make any commitments on basic telecommunications. 
64. In this connection, we urge Chile to reflect the regulatory progress made in its final offer on 
services in the current negotiating round and to na rrow the wide gap that exists between the 
commitments in effect and the legal framework applicable. 
Free trade agreements and bilateral trade relations 
 
65. I should also like to refer rapidly to the tr ade relations between Mexico and Chile.  The 
agreement on free trade in goods was the first negotia ted by Mexico, even before the NAFTA.  It was 
reinforced by the inclusion of services, investme nt, procurement, etc., and came into force in 
August 1999.  As a result of this agreement, trad e relations between Mexico and Chile became even 
closer.  Since 1990, the year prior to the entry into  force of the first FTA, trade has increased almost 
twenty-fold.  Between 1999 and 2008, the value of total trade rose by some 300 per cent. 
66. In 2003 and 2008, Mexico was the fourth largest  foreign investor in Chile, after Canada, 
Spain and the United States of America.  This s hows the importance of the Chilean market for the 
private sector in my country. 
Main issues raised in our questions 
 
67. Because of my country's keen interest in developments in Chile's trade policies, my 
delegation posed a number of questions relating to intellectual property, technical barriers to trade, 
services, agriculture, inter alia .  We thank the Government of Chile for its efforts in replying to the 
questions raised by my delegation, which we shall examine in detail back in our capital. 
CHINA 
 
68. This Trade Policy Review is being held at an  extremely important moment.  The G-20 leaders 
have reiterated the call to conclude the long-st alled Doha Development Round by 2010, and it is 
already the longest set of multilateral trade negotia tions in the history of the GATT and the WTO.  
The world economy is witnessing some positive signals in the difficult recovery process.  The global trade environment has become more complicat ed with many countries resorting to trade 
protectionism. 
69. In our work related to the above mentioned issu es, Chile has consistently played an important 
role by submitting many proposals to the vari ous WTO bodies during the review period.  
Ambassador Mario Matus and his team in Geneva ha ve contributed a great deal to the whole process.  WT/TPR/M/220 
 Page 13 
 
 
  70. We share the Secretariat's conclusion on Chile 's trade policy for the period between 2003 and 
2009, which indicates that a trade regime with charac teristics of openness, transparency, predictability 
and inter-sectoral-neutrality has been continuing si nce 2003.  Although Chile has been affected by the 
critical global financial crisis since the last quarter  of 2008, we have seen that it has maintained and 
even improved a sound trade environment by adop ting many trade facilitation measures such as 
computerization of its import and export procedur es, creation of customs tribunals, abolishing 
customs clearance tax and airport tax, export promotion programmes and revising its competition 
regime by establishing a tribunal in 2004, etc.  Ch ile saw a steady increase in the share of trade in 
goods in its GDP from 44 per cent in 2004 to 69.6 per cent in 2008.  Its trade regime, which combines unilateral market opening, multilateral and bilate ral trade negotiations, gives Chile's economy an 
outward orientation.  Chile has 21 bilateral agreem ents with 57 trading partners and the trade with 
these preferential partners accounts for 92 per cent of its overall trade. 
71. Though we are geographically far from each other, China and Chile are close trading partners.  
China is Chile's largest trading partner with steady and healthy trade relations with Chile.  In 2008, 
the bilateral trade volume reached US$17.5 billion,  which represented an increase of 19.3 per cent 
over 2007.  Through the bilateral free trade ag reement (FTA) which took effect in 2006, both 
countries have benefited from preferential tariffs on their imports and expor ts.  Economic cooperation 
between the two countries has deepened.  Although th ere was a decrease in ou r bilateral trade this 
year caused by the world economic slowdown, we ar e determined to enhan ce our bilateral economic 
and trade relationship against the economic turbulences. 
72. For the purpose of better understanding Chile's e fforts to maintain its sound trading regime 
and useful trade facilitation measures to promote its trade, China has submitted  questions with respect 
to Chile's specific trade policies and measures in place.  We appreciate Chile's prompt responses to 
our questions and look forward to further discussions. 
TURKEY 
 73. Beyond any doubt, Chile is a success story.  In almost every economic indicator, from 
economic performance to financial stability, Chile  has achieved very positive results and its economy 
recorded remarkable progress over the previous decade. 
74. Furthermore, Chile's achievement is even more impressive with regard to the distribution of 
benefits, accrued over the past decade.  Chile reduced the number of poor by almost half.  Certainly, 
this is a new bar for many developing countries to catch up. 
75. With regard to the trade policy, by any defin ition, it is an open economy with a liberal trade 
regime. 
76. We are also pleased to observe that Chile's Am bassador Matus also applies the same openness 
principle to his Chairmanship of the General Council.   This approach reflects the guiding principle of 
multilateralism embodied in the Chilean approach to inte rnational trade, and we are sure that this will 
be reflected in the Chairmanship of the upcoming Ministerial Conference as well. 
77. For goods, Chile sets an important example as it applies a uniform, flat tariff rate across the 
different sectors.  This does not leave any room for tariff escalation.  It applies relatively few 
restrictions, mostly on the basis of sanitary or technical regulations.  For services, it has a few limitations. 
78. Furthermore, analysis of Chile's success in  combining the multilateral approach with a 
number of bilateral agreements may increase our  understanding of the place of preferential 
agreements in the multilateral trading regime. WT/TPR/M/220 
Page 14  
 
  79. Of course, there is always room for improvement.  As pointed out in the Secretariat's Report, 
owing to the surge of imports in recent years, the negative net contribution of exports to GDP in real 
terms may be a reason for concern.  This was explained partly as a result of increased imports of investment goods. 
80. In fact, Turkey has a similar economic feature, and it will be interesting to learn how the 
Chilean Government has been addressing this situation. 
81. Since its previous Review in 2003, Chile has almost tripled its exports.  While the regional 
arrangements seem to play a crucial role in expanding  and diversifying markets, there is still room and 
need for further efforts to diversify the product base.  This is reflected in our bilateral relations as 
well. 
82. Our bilateral trade and economic relations are li mited, but growing fast over recent years. 
83. Since the previous Review, Turkish-Chil ean two-way trade almost tripled from 
US$174 million to US$575 million in 2007, sliding down since then owing to the economic crisis.  
Steel and copper are the predominant products in bilateral exchanges. 
84. In view of the growing potential, we signed an  FTA on 14 July 2009.  This agreement will be 
reviewed in the appropriate committee of the WTO a nd we hope to get it ratified in the very near 
future.  On the occasion of signing of the agreemen t, for the first time, we also organized a trade 
mission to Chile in 2009.  We hope to keep up th is momentum in bilateral relations in the coming 
years and put our trade relations on a more sustainable basis. 
85. Before concluding, let me reiterate that, for us , the Chilean trade regime is a text book case:  
simple, liberal and open.  It certainly has several features to be reflected at the multilateral level. 
ECUADOR 
 
86. When speaking of Chile's trade regime, we can  clearly perceive its policy of negotiating 
bilateral agreements with a large number of countri es worldwide.  The signature of some 21 regional 
agreements with 57 trading partners, representing so mewhat over 92 per cent of total trade in goods, 
is proof of this.  In Chile's case, we also welcom e the sustained growth of its economy, which over the 
period 2003-2008 showed annual average growth of 4.8 per cent.  Moreover, Chile has been able to 
provide the necessary support to enable its producers,  particularly small-scale producers, to take 
advantage of the opportunities which the opening of markets can offer.  Combined with the 
implementation of domestic policies aimed at achieving wider distribution of the benefits of trade, this 
has allowed Chile to lower poverty levels from 21 per cent in 2000 to 14 per cent in 2008. 
87. In order to ensure that Chile's economic gr owth can continue in the future, important 
challenges have to faced, one of which is to lessen its vulnerability to external shocks, as can be seen 
from the devastating effects of the international fina ncial crisis on the economy of the vast majority of 
developing countries, even though they had no responsibility for its creation, and how to evaluate the 
global economic impact of its regional agreements, which the Secretariat's Report describes as 
complex. 
88. The main feature of Chile's tariff regime is the binding of its tariffs and a single MFN tariff of 
6 per cent since 2003, with a few exceptions.  The el imination of the few quan titative restrictions and 
import licences still in effect and the imposition of ad valorem  tariffs on all goods would help to 
enhance the simplicity and transparency of its tariff structure.  WT/TPR/M/220 
 Page 15 
 
 
  89. For Ecuador, Chile is not only an important tradi ng partner, but is also a friend.  Ecuador and 
Chile recently held the IInd Meeting of the Binational Interministerial Council, where a series of 
commitments going beyond the trade sphere were agreed, covering cooperation in such important 
areas as health, education and the administration of ju stice.  Returning to the trade sphere, relations 
between the two countries, which exceeded US $2 billion in 2008, are covered by Economic 
Complementarity Agreement No. 32, signed with in the LAIA framework in 1994, which it was 
agreed to strengthen when President Rafael Correa visited President Michelle Bachelet on 10 March 2008.  We are certain that this new inst rument will enable trade between the two countries 
to be given renewed impetus and to  be further diversified.  As regards the current negotiating round, 
Chile and Ecuador hold similar views in several are as, including agriculture and fisheries subsidies.  
Both countries belong to the agricultural G-20 and the Friends of Fish group. 
90. We also welcome the constructive spirit in  which Chile approached my country's 
consultations in the Committee on Balance of Payments Restrictions. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 91. This Review provides a valuable opportunity for us to take a fresh new look at the recent 
economic and trade developments in Chile.  Overa ll, its main macroeconomic indicators reflect a 
strong performance since the previous Review.  Chil e's per capita GDP, for example, by the end of 
2008, had risen to more than double the level recorded in 2003, to being one of the highest in Latin America today.  We also note that Chile h as introduced reforms to provide for more autonomy 
in its competition policy system, and to enhance th e transparency and efficiency of government 
procurement and the protection of IPRs.  As an  open economy, highly dependent on foreign trade, 
Chile is inevitably sensitive to the global economic  situation.  Neverthele ss, the Government has 
managed to minimize the impact of the recent gl obal financial crisis and economic downturn by 
reacting promptly and through e ffective coordination of the fiscal and monetary authorities. 
92. Both Reports highlight the fact that Chile is a strong advocate of FTAs.  It has signed 
21 FTAs with 57 trading partners.  These FTAs redu ced some potential barriers to Chile's exports.  
However, they may be adding inconvenience and co mplexity to its trading regime as well.  Having 
said this, Chile has reiterated its belief in negotiatio ns within the multilateral trading system as the 
best way to achieve market access, and is an ac tive participant in all the negotiating groups in the 
DDA, tabling a large number of proposals either on its own or in partne rship with others.  
Furthermore, we would like to express our apprecia tion of the excellent role that Mario Matus has 
played as the Chair of the General Council.  We do hope Chile continues its significant role in the 
multilateral trading system and its support fo r the early completion of the Doha Round. 
93. Our bilateral relationship is a close one.  Ch ile is our second largest trading partner in 
South America.  In fact, the amount of two-way trad e between us more than tr ipled in the last five 
years to a total of US$2.3 billion in 2008.  Interesti ng that, within this, Chile's exports to us expanded 
by over 200 per cent, while our exports to Chile in creased only by 67 per cent.  We have further close 
cooperation within APEC as well, therefore all in all we have every reason to believe that the ties 
between us will become even stronger in the future. 
NEW ZEALAND 
 
94. Chile's continued commitment to adopting a nd maintaining open trade and investment 
policies in the period under review is to be co mmended.  As members of the WTO, APEC and the 
Trans-Pacific Strategic Economic Partnership Ag reement (P4), New Zealand and Chile share a 
common belief in economic and trade liberalization processes. WT/TPR/M/220 
Page 16  
 
  95. New Zealand and Chile cooperate closely in the WT O.  In the area of agriculture, we share a 
common desire for the elimination of export subsid ies, a substantial reduction in trade-distorting 
domestic support measures and the dismantling of ta riffs and other barriers to market access.  
New Zealand and Chile work closely as part of the Friends of Fish group, with the common goal of an 
ambitious outcome in the fisheries subsidies negotia tions, through removal of subsidies that contribute 
to over-fishing and over-capacity.  We are both co mmitted to a successful and ambitious conclusion 
to the Doha Round as an important means of stimul ating trade flows and demonstrating international 
commitment to open markets. 
96. In the APEC context, New Zealand commends Chile 's participation in Part I of the Mutual 
Recognition Agreement (MRA) on electrical and el ectronic equipment (EEMRA) and would welcome 
any progress Chile has made towards becoming a me mber of the International Electrotechnical 
Commission (IEC) and participating in Part II of the MRA. 
97. New Zealand commends Chile for engaging in an ambitious and comprehensive free trade 
agenda.  Access to markets and ease of trade is especially important for relatively small economies 
like New Zealand and Chile.  As founders of the P4  (now known as the Trans-Pacific Partnership or 
TPP), along with Singapore and Brunei, we look to  APEC and the expansion of the TPP as an 
opportunity for better regiona l economic integration. 
98. New Zealand also welcomes Chile's progress towards accession to the OECD. 
99. New Zealand would like to congratulate Chile  on its sound macroeconomic policies, which 
have allowed commendable fiscal and monetary stimulus measures to help overcome the global 
economic downturn.  The efficient and coordina ted response from the Chilean Government has 
enabled Chile to effectively face the economic crisis. 
100. New Zealand encourages Chile to continue to avoid the use of trade remedies measures which 
are applied in an arbitrary and non-transparent manner.  We hope that Chile will uphold the rules 
contained in Article XIX of the GATT 1994 a nd the WTO Safeguards Agreement, including 
maintaining the WTO principles of market access and transparency when considering the application 
of temporary safeguard measures on milk products over  the coming months.  It is important in these 
times to resist the temptation of appeasing groups seeking political actions and New Zealand would 
like Chile to continue to resist such temptations , particularly in consideration of trade remedy 
actions - so that any such actions are undertaken in a non-distorting and temperate manner. 
INDIA 
 101. Chile practises an open trade regime which has often earned it the credit of being the "Latin 
American Tiger".  Its prudent and dynamic trade and economic polices have enabled Chile to make 
major gains in socio-economic development duri ng the past two decades.  Between 2003 and 2007, 
Chile enjoyed growth in line with potential at ar ound 5 per cent per year and was able to build on 
favourable conditions. 
102. Chile, in its Report on the external situation, has acknowledged that the international situation 
is of crucial importance for it and the recent gl obal economic slowdown has resulted in an adverse 
external environment for Chile.  It suffered a serious  hit from the external shock in autumn last year, 
which brought a severe global credit crunch, and a 70 pe r cent fall in the price of copper between July 
and December 2008.  It will be useful to hear from Chile its perspectiv es on the changing global 
economic scenario, its impact on Chile's economy and trade and the steps it proposes to take to 
overcome negative implications for its economy and external trade.  WT/TPR/M/220 
 Page 17 
 
 
  103. Our Discussant has pointed out that BNP Pari bas in its recent report has commented that, 
although the country is viewed as a regional l eader in institutional stability and economic and 
financial development, Chile's socio-economic sta tistics are somewhat disappointing.  The strength 
and relative stability of economic growth has not  been accompanied by an improvement in the 
distribution of national wealth.  The endemic nature  of wealth inequalities increases the difficulty of 
and time required to eliminate disparities linked to a relatively compartmentalized social structure 
which limits social mobility and instead reflects a certa in sort of post-colonial oligarchy.  It would be 
interesting to hear from Chile what measures it c ontemplates putting in place to address such issues in 
order for it to join the rank of developed countries, as announced by Ms Ana Novik, with Chile joining the OECD in coming months. 
104. Chile is a major signatory of bilateral FTAs.  As pointed out in paragraph 29 of its Report, it 
has signed 12 PTAs since 2003.  Apart from thes e FTAs and PTAs, Chile had also signed various 
Economic Complementarity Agreements with most of the countries in Latin America. 
105. Chile is an active participant in the WTO and the Doha Round negotiations.  This is further 
testified by the very active and prominent ro le played by the Chilean delegation led by 
Ambassador Mario Matus, who currently also  holds the chair of the General Council. 
106. Paragraph 12 of the Summary Observations in th e Secretariat's Report mentions that reducing 
bound rates would enhance certainty for MFN traders.  We would like to have Chile's response as to when it plans to reduce the bound rates.  Similarl y, we would like to hear Chile's response to 
paragraph 22 of the Secretariat's Report regard ing the contingency measures it applies to protect 
domestic producers of wheat, wheat flour and dairy products, and the price band system it applies to 
wheat, wheat flour and sugar.  Pa ragraph 23 of the Secretariat's Re port's concerning restrictions on 
residency and establishment requirements to invest in  fishing or aquaculture activities seems to be at 
odds with Chile's open trade and inv estment policies.  It would be interesting to hear from Chile what 
reforms, if any, it proposes to undertake in this area. 
107. The composition of Chile's trade still continues to rely on a single commodity i.e. copper, 
almost 54 per cent;  paragraph 34 of the Secretaria t's Report on the economic environment refers to 
this.  We would like to hear from Chile what step s it has been taking to diversify its economy and 
export basket. 
108. India-Chile relations are friendly and growing.  India's incumbent President paid her first ever 
State visit to Chile in April last year.  In economic and commercial areas, there has been a steady increase and diversification over the past ten years.  Chile was the first country in South America with 
which India signed a trade agreement in 1956.  Th e India-Chile Preferential Trade Agreement came 
into force in August 2007.  Both countries are also engaged in negotiations on entering into an FTA.  
Bilateral trade between India and Chile has often fluctuated  since 2006, between US$1.3 to 
US$2 billion. 
109. India's main imports from Chile include copper,  fishmeal, newsprint, almonds and recently 
wine from Chile has also entered the Indian market.  India's exports to Chile are textiles, carpets, hand 
tools, motor vehicles and pharmaceuticals.  It is heartening to note that Indian commercial vehicles and cars of Tata Motors, Mahindra and Maruti, and bulk pharmaceuticals have entered the Chilean 
market.  The Indian IT industry has also made its presence known in Chile.  Leading Indian IT companies participate, for example, Tata Cons ultancy Services has a regional business processing 
outsourcing (BPO) centre in Santiago to provide services to  its clients.  We are convinced that there is 
scope for further increasing and diversifyi ng bilateral economic and trade relations. 
110. It has been reported that Indian exporters of  agricultural products face numerous difficulties 
in exporting their produce to the Chilean market.  Instances of arbitrariness on the part of customs WT/TPR/M/220 
Page 18  
 
  authorities in Chile affecting Indian exports have al so been brought to our notice.  They have been 
confiscating Indian consignments of mangoes, pulses, spices, seeds, banana leaves, cardamom 
powder, rice, saffron and various other items wi thout giving any explanations or any written 
document.  We urge Chile to take appropriate steps to address these problems, which do not 
contribute to the fair name of Chile as pursuing open market policies and practices. 
111. Similarly, Chile's trade polices have also impe ded the introduction in an organized manner of 
Ayurveda and Indian traditional medicines to the Chilean market.  It is understood that a proposed agreement on cooperation in Ayurve da and Indian traditional medicines has been pending with the 
Chilean Government for over four years.  We hope that the Chilean authorities will expedite their 
response to the agreement to foster closer coopera tion in the field of traditional health care between 
India and Chile.  Here I may add that Chilean wines such as Casillero del Diablo  enjoy first mover 
advantage among new world wines and are fast gaining popularity in the Indian market and Indian restaurants.  Apart from the good quality, the effo rt piloted by former Ambassador Jorge Heine in 
New Delhi led to the success of Chile an wines in India.  His memorabl e quote being:  "If I talk about 
copper ore, people won't be interested in what I'm sa ying.  But wine gets people interested in Chile." 
COSTA RICA 
 
112. Costa Rica is participating with interest in this fourth Review of Chile's trade policy and 
wishes to take this opportunity of highlighting the achievements of the Chilean economy and its 
stability, despite the international financial crisis , and to underline the openness, transparency and 
predictability of Chile's trade and investment re gime.  These achievements, together with the 
implementation of appropriate domestic policies, have also helped to bring about a significant 
reduction in poverty levels and an improveme nt in the population's living standards. 
113. Although trade between our countries continues to be at a modest level, it has grown in recent 
years.  Our exports to Chile rose from only US$7 .3 million in 2003 to US$24 million in 2008 and 
imports from Chile increased from US$80.5 million in  2003 to US$207 million last year.  The 
majority of imports from Chile consisted of raw ma terials such as copper (29.7 per cent) and timber 
(9.8 per cent), together with wine (3.6 per cent) and intermediate products for industry. 
114. It should be pointed out that Costa Rica has an  FTA with Chile that entered into force in 
February 2002 and an agreement on reciprocal promo tion and protection of investment in effect since 
2000. 
115. My delegation also wishes to draw attention to Chile's work in the WTO and its attachment to 
the multilateral trading system.  We share Chile's  interest in seeing that the Doha Round trade 
negotiations offer new trade opportunities to all Me mbers and lead to a stronger system based on 
WTO rules.  We wish to emphasize in particular th e joint work carried out in the Cairns Group in the 
search for equitable treatment of agriculture at th e global level, as well as the efforts made in areas 
such as NAMA, the negotiations to reinforce the an ti-dumping regulations and trade facilitation, just 
to mention a few issues. 
PERU 
 
116. I shall refer to the special trade and economic integration relations be tween our two countries, 
which date back many years, not only because we are neighbours but also because we both belong to integration processes such as the LAIA.  Indeed, Chile  is the sixth most important destination for our 
exports and the eighth country of origin of our im ports.  In 2008, our trade amounted to just under 
US$3 billion, increasing by 19.6 per cent that year in  comparison with 2007, thereby underlining the 
considerable potential for trade re lations between our two countries.  WT/TPR/M/220 
 Page 19 
 
 
  117. In 1998, we signed Economic Complementarity Agreement No. 38 (ECA No. 38), within the 
LAIA framework, which includes a reduction timetable  for phasing out customs duties and equivalent 
fiscal, monetary and foreign exchange charges a nd any other taxes within  a maximum period of 
18 months in order to establish a free trade area.  So far, the overall balanc e of this mechanism has 
been highly positive inasmuch as after ten years tr ade flows in both directions have increased 
significantly, from US$421.10 million at the end of 1997 to US$2,959 million at the end of 2008 - as 
already indicated - corresponding to an increase of  approximately 700 per cent over this period.  
Peru's exports to Chile followed the same upward trend and in 2008 amounted to US$1,837.65, with a 
trade balance in favour of Peru of some US $715.347 million.  According to Table A1.4 in the 
Secretariat's Report on imports of goods over the peri od 2002-2008, Peru was one of Chile's ten most 
important trading partners. 
118. The main products exported to Chile by Peru ar e copper, zinc, tin, light oil, cotton polo shirts 
and clothing, shellfish and plastics, sa wn and semi-finished products of wood. 
119. I must also underline Chile's importance for Peru in  terms of investment.  Chile is in fact the 
fifth largest investor in Peru, with over US$1 b illion invested in December 2008, which makes it the 
foremost Latin American investor in Peru.  For its part, in December 2008 Peru had provided 
US$45 million in FDI authorized by the Chilean Fore ign Investment Committee.  I am convinced that 
Chile's continued efforts in favour of the best possibl e climate for foreign investment in all sectors of 
its booming economy will certainly attract the inte rest of Peruvian businessmen in new and large 
investment so I hope that Chile pursues the proper path of openness, sectoral neutrality and national 
treatment in relation to investment. 
120. In June 2005, our countries commenced negotiati ons with the aim of expanding the scope of 
ECA No. 38 of 1998 within the LAIA framework , incorporating services, investment and other 
disciplines.  This expansion was agreed in August 2006.  When it is approved and comes into force, 
we consider that it will help to deepen bilateral trade relations even further. 
121. Our delegation has taken the opportunity to su bmit a minimum number of questions (16) on 
various aspects covered in Chile's Report to this  body, essentially matters relating to technical 
regulations, border measures, and the price band sy stem.  We thank Chile for their full replies. 
SWITZERLAND 
 
122. My remarks will cover three points:  our b ilateral economic relations, Chile's domestic 
economy, and thirdly, its trade policy. 
123. Firstly, our bilateral economic relations bene fit from a very comprehensive institutional 
framework.  We presently have an  FTA together with our partne rs in the European Free Trade 
Association (EFTA), a bilateral Investment Pr omotion and Protection Agreement and a Double 
Taxation Agreement under ratifi cation by our Parliaments. 
124. As a result of these agreements, we have seen more than a doubling of our trade since 2003 
and a remarkable increase by two thirds of Swiss FDI in Chile.  Major Swiss firms operate in Chile, 
providing jobs for more than 14,000 people. 
125. Secondly, the Chilean economy:  Chile's sound macroeconomic policy over the review period 
was a particularly good basis to respond effectively and to resist the impact of the international 
financial crisis and the subsequent global recessi on on the domestic economy.  The structural 
budgetary surplus has allowed the Government to counter the crisis with a powerful stabilization 
package focusing, inter alia , on promotion of small and medium-sized enterprises (SMEs), youth 
unemployment and the poor.  We consider it very im portant that the recession should not threaten the WT/TPR/M/220 
Page 20  
 
  social achievements of the past years characterized  by a significant decline in the poverty rate and of 
income distribution disparity.  We also praise th e authorities for establishing an Economic and Social 
Stabilization Fund with the windfall copper revenues of the past years.  Thanks to this Fund, a strong 
appreciation of the peso and an overheating of the economy were avoided while future investments 
and needs could be funded. 
126. On the monetary side, Chile's Central Bank has a dopted an interest rate policy very similar to 
Switzerland's with a current record low rate of 0.5 per cent. 
127. Thirdly, Chile's trade policy:  we fully suppor t Chile's stance on open markets.  We welcome 
the Government's effort to simplify and modern ize customs procedures.  We note that no import 
licensing regime is applied, although certification requirements are in place for the import of certain 
goods such as food products or chemicals.  We fully  support the position of the Chilean Ministry of 
the Economy not to create unnecessary trade barriers,  with standardization activities undertaken by 
national institutions.  In this regard, we would be  interested in obtaining additional information on 
Chile's third party conformity assessment, and in particular product coverage. 
128. Chile's tariff structure is simple and straight forward, with a relatively low MFN average of 
6 per cent.  In order to enhance legal certainty and predictability for trading partners, we hope that in 
the current negotiations, the gap between bound and applied tariffs can be substantially reduced. 
129. We also want to bring to your attention Ch ilean legislation on anti-dumping and safeguard 
measures, which allows their application only for ve ry short periods of time, discouraging their abuse 
for protectionist purposes. 
130. In the area of government procurement, we note with satisfaction that the introduction of an 
electronic platform has greatly improved transparency  and efficiency.  Chile's procurement regime is 
in line with the basic principles, GPA rules a nd standards for market access.  For this reason 
Switzerland would like to encourage Chile to beco me a party to the Plurilateral Agreement on 
Government Procurement.  This would ope n up new opportunities for Chilean businesses. 
131. Switzerland also commends the Chilean Governme nt on its efforts to improve the protection 
of IPRs.  However, we still have significant concerns  with regard to the protection of undisclosed test 
data submitted in the context of marketing appr oval procedures for new pharmaceuticals or chemical 
substances. 
132. Let me conclude, Mr Chair, by emphasizing Chile's great economic achievements in the 
review period.  Switzerland shares with Chile a stro ng interest in a successful conclusion of the Doha 
negotiations and commends Chile on its active partic ipation in the Round, as well as its commitment 
to the multilateral trading system. 
AUSTRALIA 
 
133. Australia certainly endorses the very positiv e comments of others on Chile's economic 
performance and its trade policy regime.  Chile is  Australia's third largest trading partner in 
Latin America and a very close ally in the Cairns  Group, the WTO, in APEC and soon in the OECD, 
in the promotion of trade liberalization and the need to resist protectionism, particularly in the context 
of the global economic crisis.  And, of course, we are a fellow new world wine producer. 
134. There is no better confirmation of this shared  commitment to trade liberalization than the 
negotiation and entry into force on 6 Marc h 2009 of the Australia-Chile Free Trade 
Agreement (ACl-FTA).  As was stated by Australia 's Minister for Trade, the Hon. Simon Crean, MP, 
on 10 February 2009, when Chile completed its ratification of the newly negotiated Free Trade  WT/TPR/M/220 
 Page 21 
 
 
  Agreement, the ACl-FTA is the most comprehensiv e outcome on goods in any FTA that Australia has 
negotiated with another agricultural producing country since the Closer Economic Relations 
agreement with New Z ealand signed in 1983.  It does incidental ly bring to fruition a proposal first 
floated informally more than a decade ago by Deputy Director-General Alejandro Jara. 
135. This high quality comprehensive Agreement embraces commitments going beyond what each 
country has committed at the WTO.  As such, th e Agreement reinforces the contribution of both 
countries to the multilateral trading system. 
136. Upon entry into force, the ACl-FTA eliminated Chile's tariffs on almost 92 per cent of tariff 
lines covering 97 per cent of goods currently traded.  Tariffs on all existing merchandise trade will be 
eliminated by 2015. 
137. Such a positive outcome, however, would not have been possible had not Chile's economy 
been so open and its trade policies so liberal and tran sparent - a fact that is further emphasized in the 
Reports prepared for this Trade Policy Review. 
138. As the ACl-FTA has only been in force fo r seven months, and as both countries have 
experienced during that time the negative effects of  the global economic crisis, it is still too early to 
demonstrate in precise terms the impact of the Agreement on trade between Australia and Chile.  
Suffice to say though that there has in any case been remarkable growth in bilateral trade over the past 
five years.  Australia's total two-way trade with Chile was valued at A$1. 275 billion in 2008-2009.  
Between 2003 and 2008, Australia's total two-way trade increased by an average of 35 per cent 
annually, with two-way services trade growing on average by 52 per cent and two-way goods trade 
increasing on average by 30 per cent. 
139. Australia values our cooperation with Chile in the WTO and the Doha Round and Chile's 
constructive role in promoting the importance of trad e liberalization.  Australia values Chile's strong 
advocacy of agricultural trade reform, including as a fellow member of the Cairns Group.  Australia's 
recognizes that Chile's unilateral tariff liberalizati on has resulted in a relatively low average applied 
MFN tariff rate of 6 per cent for most products .  However, we would welcome a dismantling of 
Chile's price band system, which applies to imports of wheat, wheat flour and sugar. 
140. Australia welcomes the reforms to Chile's services sector since the Uruguay Round and 
recognizes that in practice the market is relatively open.  Chile has made substantial commitments on 
services in FTAs, including the ACl-FTA.  In orde r to reaffirm the importance of the multilateral 
system, particularly at a time when the global ec onomy is in crisis, we would encourage Chile to 
replicate the depth and quality of the FTA commitments in their Doha Round Services offer. 
EUROPEAN COMMUNITIES 
 
141. We single Chile out as one of the strongest and most advanced economies in Latin America, 
one that has confidence in and takes as its basi s the proper functioning of the multilateral trading 
system, thereby giving the WTO valuable support.  In  fact, Chile is one of its most active Members, 
undertaking important diplomatic work in Geneva , and acting as a key negotiator in the various 
sectors of the Doha negotiations. 
142. The Chilean economy is fully integrated into the global economy, thanks to its active 
participation in the WTO, its marked trade a nd economic openness, as well as the implementation and 
reinforcement of trade and investment agreements. 
143. The European Communities and Chile have had very  close trade relations for over five years, 
under our Association Agreement.  At the trade level, we can draw attention to the constant growth in WT/TPR/M/220 
Page 22  
 
  bilateral trade and investment.  For example,  bilateral trade has doubled since 2002, reaching 
€16 billion in 2008.  Moreover, investment flow s have continued to increase and the European 
Communities were the major investor during the pe riod 2003-2008, accounting for 40 per cent of total 
FDI in Chile. 
144. With a view to the proper functioning of our FTA, we are ready to continue improving trade 
relations within the framework of the Associa tion Agreement, giving consideration to greater 
concessions in some areas and enhancing comp liance with the provisions already agreed. 
145. The European Communities took the opportunity provided to submit questions in writing 
regarding areas of special interest that require i mmediate attention by the Chilean authorities.  We 
thank Chile for its preliminary replies, which we sh all look at carefully.  In any event, I should like 
briefly to highlight four issues of interest. 
146. Firstly, I should like to refer to the use of standards and technical regulations and, more 
particularly, to the current problems in exporting certain products (notably electrical and chemical 
goods) to Chile because of the obligation to carry out additional tests and obtain certification by the conformity assessment bodies, even in those cases in which the Chilean national regulations are 
largely based on international regula tions and the product has previously been tested and certified in 
line with these international regulations in the count ry of origin.  We urge Chile consistently to 
respect compliance with international technical regulations by WTO Members so as not to create unnecessary barriers to trade. 
147. My second point refers to IPRs.  I should like to draw attention to the changes made by Chile 
in recent years in this sphere in order to provide more extensive and consistent protection of IPRs.  
We call on Chile to continue along this path b ecause some issues of the utmost importance are 
pending, for example, the protection of exclusive information.  We hope that the legislation which Chile is currently finalizing will include this importa nt element and will also serve to strengthen the 
authorities' oversight in combating piracy. 
148. Thirdly, I should like to refer to one of Chile 's major assets, which has benefited it in the past 
and continues to benefit it, namely its fisheries products and aquaculture. 
149. In the WTO as well, there is much talk of fish eries.  Chile has shown itself to be a highly 
active participant in the negotiations on fisheries subs idies.  In Chile, so-called small-scale fishing has 
received government support and is given special treatment as regards the management and exploitation of fisheries resources.  We fully unders tand that Chile follows this approach.  In the 
European Communities as well, and along the co astlines of many other WTO Members, whether 
developed or developing, there ar e numerous populations engaged in sm all-scale fishing.  It is only 
natural that this type of fishing, so important to many coastal communities, should receive support and 
special treatment from government authorities. 
150. Lastly, I should like to draw attention to the efforts made by Chile since 2003 to reform its 
government procurement regime, in particular, the efforts to enhance the re gime's transparency - 
including the introduction of the new electronic bidding system - because they are extremely 
important and necessary steps towards ensuring fair competition.  We call on the Chilean authorities 
to continue moving ahead in that direction. 
ARGENTINA 
 
151. Regarding the information contained in the Re port, we should like to mention the sustained 
growth of Chile's economy over the period 2003-2008, at  an average rate of around 5 per cent, and its 
impact on the increase in per capita income, not to mention employment, thereby highlighting the  WT/TPR/M/220 
 Page 23 
 
 
  importance of boosting internal demand and domestic  consumption.  This growth has given the 
Chilean economy the nece ssary capacity to mitigate the negative context of the international economy 
since 2008. 
152. Chile is an active participant in the whole Doha Round negotiating process, and we endorse 
certain points of view and action on issues such as fisheries subsidies and intellectual property, 
inter alia . 
153. In connection with its foreign trade policy, Ch ile has continued to deepen relations with 
various trading partners, both at the regional a nd global levels, involving  greater expansion and 
geographical diversification of its exports and imports. 
154. The Secretariat's Report has enabled us to id entify some issues that have facilitated the 
preparation of our questions on issues such as mark et access for goods, trade and investment regimes, 
procedures, documentation and regi stration, sanitary and phytosanitary measures, export promotion, 
and production activities such as fishing and aquaculture. 
155. Argentina and Chile have long-standing bila teral relations and in  2010 both countries will 
celebrate the respective bicentennials of their independe nce.  Today, we have a broad, varied and rich 
agenda on political, economic and trade, security and social issues.  The MERCOSUR (Southern 
Common Market), in which Chile is an associate me mber, is a key factor in our regional relations. 
156. In 2008, bilateral trade be tween Argentina and Chile amounted to over US$5.5 billion. 
157. In the first half of 2009, the main export to  Chile was crude petroleum oil, accounting for 
16.4 per cent.  This was followed by natural gas in  its gaseous state, accounting for 15.6 per cent, and 
in third place aircraft, which accounted for 8.6 per cent. 
158. As regards imports, the most important are t hose related to the copper industry (cathodes), 
accounting for over 7 per cent.  In second place come iron or steel manufactures with 6 per cent. 
REPUBLIC OF KOREA 
 
159. Since the early 1980s, Chile has been at th e forefront in introducing bold new economic 
reform measures, providing text-book examples of su ccess for others to emulate.  The two Reports 
circulated show that this track record of succes s has continued over the period under review, and for 
this we sincerely congratulate Chile.  Although in recent months it has been affected by the global economic crisis, from 2003 to 2008 Chile achieved a solid  record of an annual average growth rate of 
4.8 per cent.  During this period it attained one of the highest per capita incomes in Latin America.  
Inflation rates have been kept in check (between 2 to 4 per cent annually), the Government's balances 
recorded surpluses every year, and the external current account posted a positive balance for much of 
this time. 
160. It is clear that Chile has done many things  right, and its success showcases what developing 
countries can achieve under stable leadership, with a clear blueprint for economic development which 
incorporates effective structural reform measures, and a clear strategy for liberalizing its trade and 
investment regimes. 
161. Bilateral economic relations between Chile a nd Korea have developed and matured over the 
years in line with Korea's and Chile's respective commitments to economic reform and liberalization 
of their economies. WT/TPR/M/220 
Page 24  
 
  162. In particular, the bilateral FTA has played an  important role in boosting bilateral trade.  
According to our figures, soon after the FTA came in to force bilateral trade volumes registered nearly 
fivefold increases in just four years of implementation. 
163. Chile has done many things right.  However, from our perspective there are some aspects of 
its trading regime which might warrant a second look.   Please allow me to refer to some of them 
today. 
164. As many speakers have pointed out before me, we would like to express our concerns with 
regard to Chile's price band system.  Korea is clear ly not an agricultural exporter and as such does not 
have commercial interests in the products subject to  the system.  We are, however, a member of the 
multilateral trading system with great interest in it s stability and security.  In this context, we are 
cautious and wary of any measure that might a dversely affect the proper functioning of the 
multilateral trading system.  As such, we hope for a quick and amicable resolution to the price band 
system issue:  we will look forward to the implem entation of a new law that is in line with the 
findings of the most recent Pa nel and Appellate Body reports. 
165. We note that Chile prohibits the import of used  motor vehicles, as well as used and retreaded 
tyres.  While for the moment we do not have speci fic issues on this item, we wonder, just like the 
Secretariat in paragraph 14 of the "Summary Observations", whether there is a willingness on the part of Chile to study alternative measures that are less trade-restrictive yet achieve the same policy 
objectives. 
166. Lastly, we note that Chile is not a signatory  to the Agreement on Government Procurement 
(GPA);  it is, for the moment, an observer in the Committee.  However, given Chile's commitment to 
reform its procurement regime, making it more transp arent and efficient, we believe it is high time for 
Chile to join the GPA.  We would appreci ate hearing Chile's views on this matter. 
HONG KONG, CHINA 
 
General 
 
167. Over the years, Chile has been Hong Kong, Chin a's fourth largest trading partner in Central 
and South America.  Total bilateral trade was close to US$600 million in 2008, with an average 
annual growth of 4.2 per cent since 2004.  This is  quite encouraging and there is good potential for 
future growth.  We look forward to further mutual collaboration. 
Tariffs 
 
168. Turning to a few specific areas, firstly, we are pleased that Chile has taken steps to modernize 
its customs regime and facilitate trade, particularly  by enhancing transparency in customs regulations, 
promoting participation by the private sector and abolishing customs clearance tax and airport tax. 
169. We are also encouraged to note that Chile has bound all its tariff lines, and brought the MFN 
tariff rate for non agricultural products down from 11 to 6 per cent in 2003.  Notably, since 2008, 
Chile has applied a zero tariff to certain capital goods, data-processing machinery and equipment.  We 
will welcome future liberalization efforts in furthe r reducing the average MFN applied tariff rate, the 
gap between the average bound and applied rates a nd the VAT rate, as well as removing the surcharge 
on used goods.  WT/TPR/M/220 
 Page 25 
 
 
  WTO negotiations on anti-dumping 
 
170. We applaud Chile's active partic ipation and meaningful contribution to the WTO negotiations 
on trade rules.  Under the DDA, Chile and Hong Ko ng, China share the same goal of improving and 
strengthening the anti-dumping discipline to prevent its abusive use for protectionist purposes.  Both 
economies share a common interest on issues such  as "zeroing", "negligible imports" and "sunset 
review", and have jointly submitted proposals with other Members to tighten the rules.  We look 
forward to continued cooperation with Chile a nd other Members with a view to bringing the 
anti-dumping negotiations to a fruitful conclusion. 
Agriculture 
 
171. On agriculture, we note that Ch ile provides limited support to ag ricultural products and that 
the average applied MFN tariff for ag ricultural products is only 6.1 pe r cent.  Given the relatively low 
applied tariff rate, we encourage Chile to reduce the bound tariff rates of agricultural products, a 
number of which are currently bound at 31.5 per cent,  so as to enhance certainty for trading partners. 
172. Further, we appreciate Chile's active enga gement in the DDA negotiations, and we look 
forward to its continued constr uctive participation in thrashing out the remaining issues. 
Services 
 
173. In services, we note that these account for a substantial proportion of Chile's economy, 
contributing about 67 per cent of its GDP and accountin g for 74 per cent of the workforce.  Given its 
importance, we believe that a continued effort to liberalize trade in services would be beneficial for 
Chile's further economic growth and sustainable development. 
174. We would like to encourage Chile to liberalize its  infrastructural services further, for example 
in financial services, as well as to undertake new co mmitments for those unco mmitted sectors, such as 
maritime transport services, logistics services and distribution services.  In this regard, we are pleased 
to note that the greater competition between State ports, as encouraged by the Chilean Government, 
has contributed to their improved efficiency and re duced costs.  This well illustrates the substantive 
benefits that competition and liberalization bri ng to services sectors and the economy as a whole. 
175. We also look forward to further liberalizati on in the horizontal limitations that Chile has 
maintained, in particular those in Mode 3.  As regards MFN limitations maintained by Chile, we are 
of the view that such limitations are not conduciv e to negotiations on further liberalization.  We 
encourage Chile to review whether th ese limitations could be relaxed. 
176. Turning to the current round of WTO negotiations  on trade in services, we appreciate Chile's 
active participation on both the market access and the rule making fronts, especially in the 
development of robust disciplines on domestic regulation.  We look fo rward to continual and closer 
cooperation with Chile with a view to bringing the services negotiations to a successful conclusion. 
NORWAY 
 
177. Chile and Norway are both original Members of the GATT and WTO and active participants 
in the multilateral trading system.  This commitm ent to the multilateral system is particularly 
important in today's financial climate, when the global economy is in increasing need of stable and predictable institutions with binding legislation acr oss national boundaries.  Norway firmly believes 
that an expeditious conclusion of the Doha Round will mitigate the impact of the crisis and stimulate 
economic growth.  Whilst Norway and Chile do not sh are converging interests in the negotiations on 
agriculture, we work closely in areas such as NAMA and anti-dumping rules. WT/TPR/M/220 
Page 26  
 
  178. From the Secretariat's Report, we note that the Chilean Government has made efforts to 
increase transparency in public procurement through  new legislation and the introduction of electronic 
tendering, thereby granting national treatment also to  foreign suppliers.  These are steps we welcome. 
179. Within the multilateral framework, the WTO's GP A is designed to make laws, regulations, 
procedures and practices regarding government procurem ent more transparent, and to ensure that they 
do not discriminate against foreign products or s uppliers.  The agreement has 28 members, including 
Norway.  In view of Chile's continuous process of reform and liberalization of its trade and 
investment regime, we would encourage Chile to  join the GPA, thus also contributing to a 
strengthening of the multilateral trading system. 
180. Like Norway, Chile is an open, export-orient ed economy, integrated into the world economy 
through multilateral as well as extensive bilateral arrangements.  Norway, through the EFTA, entered 
into an FTA with Chile in 2004.  The FTA has led to a mutual removal of tariffs for all but a few 
products and strengthened predictability for our companies and traders. 
181. A number of Norwegian companies and investor s are present in Chile, primarily within the 
seafood sector, but also in other areas such as sh ipping, forestry, energy, banking, technology and 
research.  Fifty-three Norwegian companies have a permanent representation in Chile, whilst others 
operate through local agents.  Chile is Norway's se cond largest export market in Latin America, after 
Brazil.  Exports have somewhat declined over the p ast year, largely as a result of the financial crisis 
and its implications for the Chilean economy, particularly in the seafood sector. 
182. In addition to our close trade relations, 14 different cooperation ag reements have been 
established between Chilean and Norwegian instituti ons of higher education.  These encompass areas 
that in the future may also be beneficial to trad e and economic relations, such as fish farming, marine 
research, biotechnology and the environment.  In conclusion, Chile is an important bilateral and 
multilateral trading partner for Norway. 
JAPAN 
 183. I would like to begin with the economic environm ent in Chile.  According to the Secretariat's 
Report, the average growth rate of the Chilean  economy was 4.8 per cent between 2003 and 2008, and 
its per capita GDP exceeded US$10,000 in 2008.  Both the export and import shares of GDP had 
increased by 2008, thanks to its liberalization polic ies, such as a single MFN tariff rate and active 
RTA strategies.  The Japanese Government consid ers that these figures show the sound development 
of the Chilean economy. 
184. In response to the global financial and ec onomic crisis, the Chilean Government has 
implemented various economic polic ies amounting to more than US$6.3 billion.  At the same time, 
there were no trade restricting or distorting measures by Chile included in the "Report to the TPRB on the Financial and Economic Crisis and Trade-related Developmen ts" published this past July.  We 
appreciate these active economic policies without any protectionist measures by the 
Chilean Government under current circumstances. 
185. Having said that, we would like to touch upon two points with respect to specific policies. 
186. Firstly, in the field of protection of in tellectual property, the Japanese Government 
appreciates the various improvements made by the Ch ilean Government such as the establishment of 
the INAPI (National Industrial Prope rty Institute) this past January and membership in the Patent 
Cooperation Treaty (PCT) this March.  However, we  still continue to be concerned regarding the 
enforcement of laws against counterfeited goods, and hope that the Chilean Government will continue 
its efforts on this issue to develop a more attractive business environment.  WT/TPR/M/220 
 Page 27 
 
 
  187. Secondly, the Japanese Government would like to underline the importance of regulatory 
transparency.  We have learned of a specific ca se in which a local regulatory branch demanded 
additional regulatory requirements, without any legal and technical basis, in the field of forestry.  
Transparency is an important factor for business act ivities.  We would like to emphasize the necessity 
of maintaining transparency to ensure a pr edictable business environment in this area. 
188. With regard to the WTO and the DDA, Japan  very much appreciates that Chile has 
maintained its strong support for the strengtheni ng and liberalization of the multilateral trading 
system, and the successful conclusion of the DDA.  Also, we would like to express our appreciation to 
Ambassador Matus for his valuable efforts for the Ministerial Conference and DDA negotiations as Chair of the General Council.  We will continue to  work closely with the Chair and other Members. 
189. In conclusion, Japan would like to reiterate its  hope that Chile will continue its efforts to 
promote and liberalize its economy and trade, in orde r to benefit from the multilateral trading system. 
PANAMA 
 
190. Panama acknowledges Chile as an essential regiona l partner and as one of the most open and 
stable economies in Latin America, with a dynami c trade policy at the bilateral, regional and 
multilateral levels.  The FTA between our countries,  which was successfully exam ined recently, in the 
Committee on Regional Trade Agreements, is proof of this. 
191. Panama pays tribute to Chile's continued commi tment to opening up its trade in goods and its 
services regime, as well as the foreign investment regime , and its untiring efforts in this direction, and 
points out that Chile's effective policies help to explain its economy's capacity for reaction to the 
various external upheavals of recent years. 
192. Chile has made great efforts unilaterally to l essen barriers to imports, it has adopted measures 
to modernize the customs and facilitate trade, phasi ng out some import taxes and export subsidies, and 
has made its regulatory and legal frameworks more transparent.  Panama congratulates Chile on its 
overall level of transparency. 
193. Panama also draws attention to Chile's judi cious trade policy and its consistency over the 
years, which have contributed to the growth and de velopment of this South American nation, and to 
its effective regional and global inte gration.  Chile's active and cons tructive participation in all the 
WTO's spheres and its firm commitment to th e multilateral trading system deserve special 
recognition. 
194. Although Chile has not made any important cha nges to its legal and institutional framework 
for the adoption and implementation of technical re gulations and sanitary and phytosanitary measures 
since 2003, Panama has posed a number of questi ons in this regard, and also on the reforms 
introduced in respect of government procurement and intellectual property. 
UNITED STATES 
 195. Chile has pursued sound economic policies for nearly three decades.  Its Government has 
received high marks from economists and its citizen s for its counter-cyclical spending in 2009 to 
offset the effects of the global economic crisis.  To its credit, Chile has refrained from introducing 
fundamental changes to its already open trade polic y and has managed to continue along the path of 
trade liberalization since 2003.  We would like to  recognize Chile's open and transparent trade and 
investment regime and commend the delegation for the work your Government has done to create a 
predictable business environment within Chile's bor ders.  Chile's stable democratic institutions WT/TPR/M/220 
Page 28  
 
  coupled with solid economic growth have provi ded an important example both regionally and 
globally of the benefits of open trade. 
196. Successive Chilean administrations have remained  steadfast in their commitment to deepen 
integration with the global economy through trade agreements.  For example, the economies of the 
United States and Chile have long enjoyed close trad e ties, the cornerstone of which is our bilateral 
FTA, which entered into force on 1 January 2004.  At the time of the 2003 Trade Policy Review, the 
United States and Chilean economies were expected to integrate even more with the implementation 
of the bilateral FTA.  We anticipated increased United States direct investment, thereby further 
stimulating trade flows. 
197. Today, six years into our FTA, we can say that the growth in trade is  consistent with our 
expectations.  The latest available data show th at from 2007 to 2008 United States direct investment 
in Chile grew by 9 per cent.  Our two-way bilatera l trade in goods has near ly tripled since the FTA 
took effect up to 2008, though trade has fallen somewh at in 2009 due to the global recession.  There is 
no mistaking the synergy between trade, investme nt, and development;  and we believe that the 
Chilean economy will continue to generate new opportunities for foreign investors and suppliers. 
198. As it did in 2003, trade represents a signi ficant and increasing portion of Chile's GDP, 
accompanying Chile's policy of open markets and increasing commercial ties through trade 
agreements.  With more than 60 trade agreements  with countries around the globe, we understand that 
Chile plans to continue negotiations with additi onal countries while nurturing export diversification 
strategies.  Overall, the United States views Chile as  a valuable partner in the western hemisphere and 
the ties between our two nations con tinue to grow.  Chile remains a strong supporter of the Free Trade 
Area of the Americas negotiations.  At the same time, Chile has continued to play a leadership role at 
the multilateral level, as most recently demonstrated  by Ambassador Matus' s Chairmanship of the 
General Council and the Chilean Government's effo rts to help bring the Doha Round to a successful 
conclusion.  Chile has recognized the importance of  open trade as a key development tool and the 
Government has acted in accordance with this conviction. 
199. The United States welcomes Chile's active partic ipation in the WTO and the Doha Round.  
Our Governments concur that the multilateral trad ing system needs further strengthening and we 
agree that, given global supply chains and the inte rconnected nature of the world's economies, the 
WTO has a unique role to play in addressing trade-distorting practices and opening markets.  We also welcome Chile's efforts as a Friends of Fish pa rticipant in pushing for a high ambition fisheries 
subsidies agreement.  We value our close work w ith Chile to secure an agreement that will truly 
address the problems of global over-capacity and ove r-fishing.  Overall, our Governments share a 
common Doha Round objective of achieving an ambitious  agreement that would bring the benefits of 
trade liberalization to all. 
200. There are, nonetheless, specific areas of Chile's  regime where action could lead to improved 
trade and investment opportunities and flows.  We ha ve referred to them in our questions, but would 
like to touch on certain of those areas today. 
201. First, we acknowledge that Chile has made so me positive efforts to improve its IPR regime, 
including the creation of a specialized unit within the Chilean police force to handle IPR crimes.  In 
addition, as the Secretariat notes, Chile recently opened a National Industrial Property Institute to oversee administrative actions related to industrial property.  We also understand that Chile recently 
acceded to the Patent Cooperation Treaty. 
202. Nevertheless, Chile's IPR perfo rmance continues to fall well below our expectations.  For 
example, the United States remains concerned about inadequate enforcement against copyright piracy 
and trademark counterfeiting.  We understand that Chile's Congress continues to consider legislation  WT/TPR/M/220 
 Page 29 
 
 
  that addresses copyright and other intellectual propert y issues.  We would particularly like to learn 
more about the status of Chile's pending copyright legislation, as well as the Government's work to 
strengthen enforcement mechanisms to fight trademark counterfeiting and copyright piracy. 
203. The United States considers the Customs Valuation Agreement to be a key component of the 
transparency and predictability that suppliers need to conduct international trad e.  Therefore, another 
area of concern that we would like to highlight in this Trade Policy Review involves Chile's 
inadequate appeals process.  The Secretariat reports  that appeals against Chilean Customs' decisions 
and actions may be lodged with the National Direct or of Customs.  But, Chile apparently does not 
provide for the right of a subsequent appeal to a judicial authority as the Customs Valuation Agreement prescribes.  We will study with interest  Chile's response to our written question on this 
issue, particularly the Government's plans to provide for this right of appeal. 
204. The United States applauds Chile for signifi cantly reforming its government procurement 
regime since 2003.  We observe that, although Chile  is an observer in the Agreement on Government 
Procurement Committee, the Chilean authorities ha ve no plans to negotiate accession to this 
Agreement.  The United States would like to enc ourage Chile carefully to consider joining the 
WTO Agreement on Government Procurement. 
205. I will end my statement by reiterating our appreciation for Chile's active participation and 
leadership in the DDA negotiations.  We look forward to continuing our work with Chile to achieve a 
balanced and ambitious result in the Doha negotia tions with meaningful new market access for all. 
CANADA 
 206. Canada and Chile have deep and diversified relations.  Chile is an important trade partner for 
Canada.  The FTA between Canada and Chile en tered into force on 5 July 1997 and marked a 
significant development in our relations.  It was th e first FTA with a South American country signed 
by Canada and was the first such agreement ever si gned by Chile.  This Agreement is the cornerstone 
of our bilateral trade relations and helps to create a climate of confidence in which trade relations have 
prospered.  Since it came into effect, bilatera l trade in goods has more than tripled, reaching 
$2.5 billion in 2008.  Trade relations have become stronger and more diversified in a large range of 
sectors, including science and technology, agriculture, forestry, gas and oil, mining and aquaculture.  
Canada intends to continue active dialogue with Ch ile so as to reinforce our technical cooperation and 
boost still further trade and investment. 
207. Canada notes that since the previous Review of  its trade policy, in De cember 2003, Chile has 
continued to follow a proactive and dynamic appr oach involving regional preferential trade 
agreements, which saw the conclusion of 21 agreements  with over 57 trading partners.  Canada shares 
Chile's point of view that mutual benefits can be derived from th e convergence of regional 
agreements, in the case of those countries which have  signed agreements with Canada and with Chile. 
208. As trade-dependent economies, Canada and Chile  share a commitment to trade liberalization 
and a strong rules-based multilateral trading system that supports maximum transparency.  Canada 
recognizes and appreciates Chile's efforts to advanc e these principles at the World Trade Organization 
and in the APEC.  Canada shares Chile's desire fo r Members to work towards a successful outcome to 
the Doha Development Round of negotiations. 
209. The most significant change in the economic e nvironment for Chile since the previous Trade 
Policy Review comes from the impact of the global financial crisis on the Chilean economy.  While 
lower commodity prices and reduced international liqui dity are expected to bring about only modest 
growth or slight contraction in Chile this year , Canada commends Chile fo r its macroeconomic, fiscal 
and monetary policies implemented over the review  period to mitigate the downward pressures on its WT/TPR/M/220 
Page 30  
 
  economy resulting from the global recession.  Chile's  transparent institutions, sound banking system, 
fiscal surpluses, and a proactive pursuit of regional tr ade agreements to maintain an open trade regime 
are contributing factors to Chile's ability to mainta in economic and fiscal stability, together with the 
well-coordinated efforts of the Centra l Bank and the Ministry of Finance. 
210. Canada acknowledges two key legislative changes that Chile has realized since the previous 
Trade Policy Review.  First, Canada commends Ch ile for approving in 2008 the creation of Tax and 
Customs Tribunals, judicial bodies independent from  regulatory agencies.  This responds to the 
concern raised by Canada during the 2003 Trade Policy Review, that there was no independent body 
with a mandate of review and correction of ad ministrative actions of the Customs Service. 
211. A second important advancement is Chile's p assing of new legislation in April 2009 to 
guarantee access to public information for its citi zens, including the creation of a Transparency 
Council.  This legislation underscores Chile's l eadership and commitment  to transparency as a 
principle of the multilateral trading system, aligning with Chile's commitments at the WTO and moving Chile one step closer towards OECD acce ssion.  Canada has been a strong supporter of 
Chilean accession to the OECD and we will conti nue to work cooperatively with Chile as it 
undertakes the necessary steps to meet  OECD membership requirements. 
212. In closing, Canada would like to welcome the se positive advances that Chile has implemented 
since the previous Trade Policy Review and encour ages Chile to continue efforts towards greater 
transparency and trade liberalization. 
COLOMBIA 
 213. It is particularly interesting and gratifying to review the trade policy of a friendly country 
such as Chile.  Interesting because we always like to receive details of the path pursued by Chile to 
reach the prominent position in development it occ upies today, and gratifying because we are happy 
to see that, thanks to the sound system of macr oeconomic policies, a responsible fiscal policy, 
opening up of the economy to th e outside, and the stability of its financial sector, the Chilean 
economy today is one of the most developed, divers ified and competitive in Latin America.  This all 
leads us to predict that, by 2020, Chile will be a developed country. 
214. I will refer to some international indicators that  clearly reflect Chile's solvent situation in 
various areas.  In 2009, Chile came 20
th out of 163 countries in terms of transparency (Transparency 
International);  in 2008 it was 8th out of 157 countries in terms of economic freedom (Heritage 
Foundation);  as to human development, in 2008, it was 40th in the global ranking and second in 
Latin America and the Caribbean (UNDP);  as to ease of doing business, in 2009 it was 49th out of 
183 economies worldwide (World Bank);  and, lastly, according to the World Economic Forum, in 2009-2010 Chile occupied the honourable first place among Latin American countries and the 30
th in 
the world in terms of global competitiveness. 
215. The foregoing is the result of serious and respons ible work done in vari ous spheres of Chilean 
economic policy.  Nonetheless, some aspects warran t the attention of the Chilean authorities.  
According to a UNDP report, inequality continues to  be a problem in Chile's development process.  
Income distribution in Chile is more unequal that in  other Latin American c ountries at a similar level 
of human development.  This is an issue regard ing which the UNDP recommends "a change in the 
way of doing things", adding that "this is today the challenge facing Chile". 
216. Our examination also highlights another issue of  concern that is the subject of discussion in 
Chile and has undoubtedly been analysed by the Government, namely, the ageing of the population.  
Several reports indicate that in the first half of the 20th century, the adult population doubled and in 
the following 50 years it quadrupled.  Because of l onger life expectancy, it is estimated that in 2025  WT/TPR/M/220 
 Page 31 
 
 
  and 2050 the older adult p opulation will increase by 16 per cent and 23.5 per cent, respectively.  This 
issue deserves special considera tion because of its social, labour, fiscal and production implications. 
217. We have also noted the concern of some Chilean  analysts regarding labour rigidity as a cause 
of unemployment.  According to the OECD, this situation mainly occurs in Chile because of the 
existence of a rigid working day and the high compensation for years of service.  Making working 
conditions more flexible without weakening empl oyees' rights and without this involving excessive 
long-term labour liabilities for employers is an acknowledged way of helpi ng to boost employment. 
218. As regards bilateral relations, Chile is a key partner for Colombia.  Trade relations come 
under an FTA signed on 27 November 2006, as the Additional Protocol to Economic Complementarity Agreement No. 24, signed in December 1993. 
219. In 2008, there was a surplus of US$189 m illion in the trade balance as a result of a 
126 per cent increase in Colombia's exports to Chile, which rose from US$376 million in 2007 to US$849 million in 2008.  The principal exports are coal (36 per cent), crude oil (25 per cent), and 
cane sugars (5 per cent). 
220. Regarding imports, between 2007 and 2008, these increased by 6 per cent, from 
US$621 million to US$659 million.  The main pro ducts imported from Chile are chemical wood 
pulp (8 per cent), fresh apples (7 per cent), refined copper wire (4 per cent), paper and 
paperboard (4 per cent) and cathodes and refined copper segments (4 per cent). 
221. My country is convinced that bilateral relations  will continue to progress satisfactorily in all 
spheres;  this is what it hopes for and wishes to see. 
BRAZIL 
 
222. Brazil is glad that Chile continues to display a solid long-term economic performance.  Its 
4.8 per cent annual average GDP growth in the 2003-2008 period un derscores Chile's ability to 
harness favourable international circumstances for the goa l of promoting prosperity for its population.  
Indeed, the period in question was very positive for Latin American economies in general, and Chile's 
policies have positioned it to reap significant gains. 
223. Brazil praises Chile for its achievements, in pa rticular in reducing poverty levels from 21 per 
cent to 14 per cent between 2000 and 2008.  In add ition, Chilean authorities deserve to be commended 
for their decisive reaction against the severe eff ects of the international economic crises on the 
country's economic activity.  Brazil trusts that decades of prudent economic management by Chilean 
authorities will now prove decisive for the country  to recover smoothly from the external shock 
ignited by the financial collapse in the developed world. 
224. Brazilians and Chileans share a common cultural heritage.  Our political relations have been 
characterized by historic bonds of friendship an d our economic ties are deep and intensifying.  
Bilateral trade and financial flows have increased steadily in the period of review.  As an Associate Member in MERCOSUR, Chile enjoys zero-duty access to the Brazilian market in most tariff lines, 
and vice versa.  Brazilian goods comprise 9.3 pe r cent of Chilean imports, whereas our market 
absorbs 6.2 per cent of its exports.  Brazil is Chile's  fourth largest supplier, behind the United States, 
the European Communities and China;  and its fifth biggest buyer, after these economies plus Japan.  
Also, in the area of services, the MERCOSUR Chile agreement will permit a further intensification of 
relations in this domain. 
225. Brazil sees with appreciation the expressions of praise contained in the Secretariat's Report 
(and repeated today by all the previous speakers)  with regard to Chile's trade policy regime.  WT/TPR/M/220 
Page 32  
 
  Notwithstanding this, we also share the concerns e xpressed in the Secretariat Report (and by some of 
the previous speakers) about Chile's price band sy stem, not only in the current version - which has 
twice been found to infringe trade rules by the WTO dispute settlement mechanism - but also as 
envisaged in the draft legislation submitted to C ongress in 2007.  The fact that, due to recent high 
commodity prices, the price band system has resulte d in low border charges does not affect Brazil's 
systemic concerns with regard to the measure. 
226. On the other hand, Brazil fails to see the basis of the Secretariat's remarks concerning Chile's 
import prohibition on used and retreaded tyres.  A ccording to the Secretariat's Report itself, these 
measures seek public health objectives.  Similar me asures have been considered necessary to protect 
human life and health by a WTO Panel and the Appellate Body. 
227. I could not conclude Brazil's statement without commending Chile for its proactive role in the 
DDA negotiations.  The fact that Ambassador Mari o Matus presently chairs the General Council is 
unequivocal evidence of the WTO Members' trust not only in the personal qualities of Chile's Permanent Representative, but also in the country's commitment to a balanced and swift conclusion of 
the Doha Round. 
MALAYSIA 
 
228. The Secretariat's Report notes that open trade a nd investment policies, together with sound 
macroeconomic management, underpin  Chile's solid economic growth;  Malaysia shares this view.  
Malaysia notes Chile's relatively low MFN average import duties of 6 per cent and applauds Chile's 
policy of not imposing quantitative restrictions on imports. 
229. Chile participates actively in the WTO and the DDA.  This is personified by Ambassador 
Matus currently chairing the General Council and prior to that the Dispute Settlement Body. 
230. Malaysia views Chile as an important trading partner and we draw satisfaction from the fact 
that trade between the countries has been growing. 
231. Based on 2008 data, Chile is Malaysia's fourth largest trading partner among Latin American 
countries after Brazil, Mexico and Argentina.  During  that year, Malaysia and Chile recorded a total 
trade of US$316.0 million, with Malaysia's e xports to Chile amounting to US$87.4 million and 
imports of US$228.6 million.  The total trade in 2008 represents 17.2 per cent growth over the 
preceding year. 
232. Malaysia's exports to Chile comprised mainly electrical and electronic products, rubber 
products and wood products, while Malaysia impor ted metal ores and metal scrap, iron and steel 
products and manufactures of metal from Chile. 
233. Malaysia and Chile commenced negotiations on a bilateral FTA in June 2007.  The seventh 
meeting of the Trade Negotiations Committee wa s held recently from 7-9 September 2009 in 
Kuala Lumpur. 
234. Malaysia believes that an FTA between Malays ia and Chile would create new opportunities to 
strengthen trade and investment linkages between the two countries. 
235. For this Trade Policy Review exercise, Malaysia  joins other Members in submitting a number 
of questions regarding Chile's tr ade and economic policies.  More specifically, Malaysia is seeking 
clarification regarding Mode 4 (movement of natura l persons), liberalization in financial services and 
cross-border supply of banking services.  WT/TPR/M/220 
 Page 33 
 
 
  SINGAPORE 
 
236. Chile and Singapore share good bilateral economi c relations.  Our economic linkages with 
Chile have grown significantly over the past few years.  From 2001-2008, bilateral trade with Chile has grown by a Compounded Annual Growth Rate (CAGR ) of 21 per cent fuelled mainly by imports 
from Chile.  In 2008, our bilateral trade with Chile reached S$425.4 m illion (US$301.6 million).  
While bilateral investment between Chile and Singapor e is fairly small, it has the potential to grow.  
In fact, prominent Chilean enterprises like the shipping company CCNI and Chile's national copper 
organization CODELCO Asia have established a presence in Singapore.  With Chile's increasing 
economic footprint in Asia, our companies have si milarly identified business opportunities in Chile's 
commodities, agro-processing and tourism sectors. 
237. On opposite sides of the Pacific Ocean and separated by a distance of 16,500 km., the 
growing bilateral relations between  Chile and Singapore are underscored by a number of fundamental 
similarities.  The most important of these is our co mmon belief in free trade.  Together with Brunei 
and New Zealand, Chile and Singapore concluded the TPP in 2005.  Conceived as a building block 
towards greater regional economic integration in the Asia-Pacific region, the TPP is a high-quality 
and comprehensive FTA that reinforces trade libera lization efforts at the multilateral level.  The 
existing TPP members are currently exploring th e expansion of the agreement to include new 
members.  Within the context of the APEC, Chile and Singapore have worked in close partnership to 
advance APEC's trade liberalization agenda.  Tr anscending economics, Chile and Singapore are also 
partners in building bridges of understanding.  Chile 's support was crucial in the creation of the Forum 
for East Asia Latin American Cooperation (FEA LAC), an idea mooted by Singapore.  Indeed, 
FEALAC has grown to become a key forum in foster ing interaction between Latin America and Asia. 
238. As both our economies are highly dependent on fo reign trade for growth, Singapore identifies 
with Chile's pursuit of open trade and investme nt policies together with sound macroeconomic 
management.  In this regard, we applaud Chile's  efforts in implementing unilateral measures to 
facilitate trade and modernize customs.  With  a few exceptions, these positive steps are clearly 
reflected in Chile's single applied MFN tariff of 6 per cent for most products, a 0 per cent MFN tariff 
for capital goods imports, and elimination of im port duties on data processing machinery and 
equipment.  As confirmed by the WTO Secretariat's Report, " Chile's trade and investment regime 
continues to be characterized by  openness, transparency, predictab ility and inter-sectoral neutrality ".  
Nonetheless, as with Singapore, there is room fo r improvement.  Building on this progress, Singapore 
looks forward to Chile removing the remaining measures on poultry products, the price band system 
on certain agricultural goods, and the tariff surcha rge of 50 per cent collected on almost all used 
goods.  We believe that the resultant simplicity and neutrality of Chile's tari ff regime would enhance 
certainty for traders, boost trade and contri bute to Chile's continued economic growth. 
239. The Secretariat's Report also highlighted that Chile has introduced important reforms to its 
IPR regime, government procurement policies and competition policy framework.  These are positive 
developments that will enhance Chile's competitiv eness and improve its prospects for growth.  On 
government procurement, we look forward to Chile eventually becoming a GPA signatory.  In terms of services, while Chile's current GATS commitments are relatively low, we think that this presents 
potential for deeper multilateral liberaliza tion in the context of the Doha Round. 
240. Chile and Singapore are natural partners.  As  small and open economies, we are both strong 
proponents of the WTO and have clear interests in  a rules-based multilateral trading system.  Chile 
and Singapore have been strong friends, and we are gr ateful to have been able to work so well with 
Ambassador Mario Matus and his de legation here in Geneva.  As s hown in this Trade Policy Review, 
Chile's unilateral trade liberalization measures to  align its trade practices with WTO principles 
illustrate its commitment to upholding the free market economy.  We are thankful for the support that WT/TPR/M/220 
Page 34  
 
  Ambassador Matus has consistently  given to the Doha Round, and remain indebted for his able 
stewardship of the General Council. 
URUGUAY 
 
241. Chile's trade and investment regime is marked  by openness, transparency, predictability and 
inter-sectoral neutrality.  Chile applies a virtually  uniform MFN tariff and gives foreign investors 
national treatment, with a few exceptions.  Since the previous Review in 2003, Chile has adopted 
measures to modernize the customs and facilitate trade, abolished certain import taxes and export 
subsidies and made important reforms to its comp etition, government proc urement and intellectual 
property regimes.  RTAs continue to play a key role  in Chile's liberalization strategy.  At the same 
time, Chile remains firmly committed to the multila teral trading system, in which it plays an active 
part and to which it contributes through the expertis e of its diplomats and its generosity in supporting 
the system, as can be seen in this forum as Ch air of the General Council and of the forthcoming 
Ministerial Conference. 
242. Despite a trade policy that is generally open, as far as industrial goods are concerned we find 
ourselves obliged to urge Chile to review the be nefits of measures such as the application of 
compound duties on certain agricultural products a nd the ban on importing specific remanufactured 
products with a view to amending them. 
243. We also have some concerns relating to Ch ile's trade policy in the agricultural sector, 
including the fact that this Trade Policy Review is  taking place at the same time as the Government of 
Chile is announcing the imposition of safeguard me asures on milk and cheese, at a level exceeding 
30 per cent, when the injury in this sector has no causal link with exports from Uruguay but rather 
with the international crisis in this sector.  Th e least we can say is that such measures yield no 
benefits, however limited in time they may be, as we  hope, especially when 12 per cent of our exports 
to Chile are composed of products in this sector. 
244. We shall, however, set aside this somewhat gl oomy part of our statement and highlight some 
other relevant aspects of our bilateral relations with Chile, which are some of the closest and 
friendliest we have in the world.  This was evident last year when the President, 
Ms Michelle Bachelet, visited Uruguay and several important agreements were signed, including the 
strategic association agreement between the two co untries, the agreement on government procurement 
and the accelerated reduction of tariffs between the two countries, within the framework of the 
MERCOSUR-Chile Complementarity Agreement, under which our bilateral trade will be totally free 
of tariffs as of 1 January next year. 
245. As stated by President Tabaré Vázquez, the st rategic association agreement signed "is neither 
unique nor exclusive".  It is not unique because Ch ile is already strategically associated with other 
countries and Uruguay signed a similar protocol of understanding for a strategic association with Mexico.  It is not exclusive as regards the integr ation schemes in which Uruguay and Chile participate 
and is not to the detriment of any regional integration process. 
246. The strategic association agreement betw een Chile and Uruguay is underpinned by 
three major pillars.  The first is that both countries have solid democracies, w ith a libertarian outlook 
and a strong commitment to individual freedom, respect for human rights and the rule of law.  Secondly, both Chile and Uruguay share a con cern and common determination to resolve the 
problems of poverty, exclusion and social inequality , so both Governments promote successful social 
programmes with a fruitful exchange of experien ce.  Thirdly, the two countries have faith in 
international trade as an engine for growth and fo r generating employment.  Lastly, both countries 
share the aim of integration, but integration open to  the world which promotes intra-regional trade by 
adopting consistent measures for the integration of  both countries in the world, thereby creating a  WT/TPR/M/220 
 Page 35 
 
 
  strong foundation for moving ahead and working toge ther at the bilateral, regional and multilateral 
levels. 
PAKISTAN 
 
247. Chile is the fifth largest economy in Latin America and has emerged as a strong 
market-oriented economy driven by a high level of  foreign trade, coupled with strong financial 
institutions giving it the strongest sovereign bond ra ting in South America.  It emerged as a model for 
macroeconomic reform in the 1990s during the Government of Patricio Aylwin, when growth in real 
GDP averaged 8 per cent over the period 1991-1997, which was later hampered by the global financial crisis and a severe drought. 
248. Chile experienced continued economic growth of  4.8 per cent during the period under review, 
largely due to a favourable external environment,  but was caught in the downward spiral of the 
present economic meltdown.  However, it has weathered the present financial crisis through a rule-based counter-cyclical fiscal policy, benef iting from surpluses in sovereign wealth funds, 
amounting to over US$20 billion, during periods of hi gh copper prices, as Chile is the world's largest 
producer of copper.  Its economic indicators have remained fairly robust.  One of the spectacular 
measures was the contraction of the monetary po licy rate from 8.25 per cent in December 2008, to 
0.5 per cent in July 2009.  Chile put in place one of the world's biggest stimulus packages, I believe to 
the tune of US$4 billion, which was favourably designed to help the neediest. 
249. Chile follows a three-track approach to trade lib eralization, at the unilateral, bilateral and 
multilateral levels.  However, it is highly reliant on foreign trade, with goods' share of GDP being 
about 70 per cent in 2008.  Bilateral trade reflects the main strength of Chile's otherwise open trade 
policy as Chile's trade in goods with preferential part ners forms 92 per cent of its overall trade.  It 
prudently reduced tariffs unilaterally to capitalize on trade opportunities.  However, at the same time, 
Chile is an active player in the WTO, where it has tabled several proposals and is a member of the 
G-20 and the Cairns Group. 
250. The country's dependence on copper prices and en suring adequate food s upplies are two of its 
major economic problems.  Two WT O Panels have found the price band system WTO-inconsistent, 
and we hope that Chile will soon remove this inco ngruity.  According to the World Bank's Doing 
Business 2009 report, Chile's rank has moved from 40
th to 36th.  A 4 per cent real contraction in 
household spending is also projected.  However, net exports are expected to help offset the negative 
impact. 
251. Chile's FDI inflows quadrupled to some US$17 bi llion in 2008.  It has over 50 agreements on 
the reciprocal promotion and protection of investment s.  The level of investment reflects confidence 
in Chile's low perception of credit risk and the co untry's business environment score of 71.2.  Greater 
fixed investment is expected for econom ic growth of 1.5 per cent in 2010. 
252. We wish Chile well and hope that with its sound economic fundamentals, it will achieve a 
higher growth trajectory.  Chile is of course a safe haven among emerging markets as it stands to 
benefit from an increasingly constructive outlook in  global commodity prices such as copper, along 
with investors' confidence, which has been ma de possible by market openness, sound financial 
markets and well-timed fiscal and monetary policies. 
HONDURAS 
 253. We note with satisfaction from the Secretariat's Report that Chile is still marked by openness, 
transparency, predictability and inter-sectoral neutra lity.  Since the previous Review in 2003, it has 
also taken measures to modernize the customs and facilitate trade, as well as abolishing certain import WT/TPR/M/220 
Page 36  
 
  taxes and export subsidies.  The reforms made in its competition, government procurement and 
intellectual property policies have also been important. 
254. It should be emphasized that in Chile the f oundations of growth can be found in the open 
trade and investment policies, sound macroec onomic management and its capacity to apply 
counter-cyclical measures.  This can be seen in th e Chilean economy's growth of 4.8 per cent and in 
Chile's per capita income, which is one  of the highest in Latin America. 
255. At the multilateral level, we note with satisfac tion that Chile plays an active role in the WTO 
and in the DDA negotiations.  The important pla ce given by Chile's trade policy regime to the 
conclusion of RTAs should be highlighted. 
256. At the sectoral level, in its Report the Secretariat draws attention to the fact that the 
agricultural sector has continued to be extremel y important for economic development and contributes 
towards the expansion and diversification of export s.  Production in the fisheries sector has been 
stabilized and the mining sector strengthened as the main source of export earnings for Chile and the major recipient of foreign investment. 
257. The trade relations between Honduras and Chile are long-standing, but our trade balance has 
consistently shown a deficit.  Cooperation between Chile and Honduras was highlighted when the 
President of Chile, Ms Michelle Bachelet, visited my  country in 2009.  During her visit, there was a 
demonstration of solidarity, with projects for microenterprises, including the donation of equipment and inputs. 
PARAGUAY 
 258. I should like to underline the excellent perform ance shown by the figures contained in the 
Reports, particularly bearing in mind the unfavourab le international macroeconomic environment we 
have all faced.  This is why it is particularly si gnificant that, for example, unemployment was brought 
down from 10 per cent in 2004 to 7.7 per cent in 2008, and real remuneration rose by 8.5 per cent over the period 2003-2008.  This shows how the im plementation of economic and trade policies can 
reach all sectors of society. 
259. Chile is one of Paraguay's leading trading partne rs, being one of the main ports for the export 
of Paraguayan products.  This is why the measures taken to facilitate trade are extremely important for 
my country, particularly bearing in mi nd our situation as a landlocked country. 
GUATEMALA 
 260. Chile is an essential trade partner in our re gion and one of the most open and stable 
economies in Latin America, with a dynamic trade policy at the bilateral, regional and multilateral 
levels. 
261. Guatemala has signed an FTA with Chile, which constitutes the cornerstone of our bilateral 
relations in the trade and investment sphere betw een our countries.  This agreement has allowed a 
sustained expansion of our bilateral trade, as we ll as offering important opportunities for further 
growth in the volume of trade with Chile. 
262. Guatemala notes that both in the Report of the Government and in that of the Secretariat, 
Chile's commitment to trade liberalization thro ugh regional and bilateral measures has been 
highlighted.  WT/TPR/M/220 
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  263. Indeed, Chile's trade programme includes the nego tiation of bilateral trade agreements with a 
large and diverse group of trading partners.  This is  a reflection of Chile's confidence in foreign trade 
as an engine for economic growth, not to mention the professional competence of its team of trade 
negotiators. 
264. Taking into account the increasingly important role  played by these measures in Chile's trade 
policy, it would be interesting to hear the views of the Chilean delegation on this form of trade 
liberalization, its practical effects, and the way in which the Chilean authorities harmonize it with 
their multilateral objectives. 
265. Guatemala notes that since the previous Review  Chile has made important reforms to its 
competition policies, notably the creation of a compet ition tribunal to enhance the system's autonomy.  
Chile has also adopted new intellectual property ru les and we welcome their notification to the WTO 
to give Members a better understanding and perception. 
266. Guatemala also notes that Chile continues to a dopt measures to facilitate trade and modernize 
the customs, including new regulations on customs valuation.  We also see that Chile has commenced revision of its price band system and we would like the Chilean delegation to give us further details 
concerning the consistency of these measures with Chile's overall economic policies, as well as their 
compliance with WTO rules. 
267. Lastly, Guatemala welcomes Chile's liberal appro ach and its active participation in the Doha 
Round negotiations. 
NICARAGUA 
 268. The praiseworthy achievements of Chile's trade policy have been set out in the Reports 
prepared for this Review, by Ambassador Guth in  his comments, and by some 30 delegations that 
have already taken the floor. 
269. Several issues have attracted our attention, mostly in the Secretariat's Report, and these 
concern the legislative reforms made to the intellect ual property regime and some of Chile's bilateral 
commitments in this regard, the application of an ti-dumping, countervailing and safeguard measures, 
services in respect of mutual recognition agreem ents and some of Chile's MFN exceptions, its 
government procurement legislation, and its line of authority, and the possibility of lodging appeals 
relating to some exceptional forms of government procurement, inter alia . 
270. These aspects are contained in the questions we have posed to Chile, and we hope to receive 
replies on Friday.  We thank Chile in advance for the hard work involved in preparing the replies. 
271. I cannot conclude without echoing the notable pa rticipation of Chile in the DDA negotiations 
and in the WTO's standing or implementation bodies. 
DOMINICAN REPUBLIC 
 
272. We note with satisfaction that Chile has a trade and investment regime that continues to be 
marked by openness, transparency, predictability and inter-sectoral ne utrality.  In this regard, during 
the period under review it adopted measures to m odernize the customs and facilitate trade, it 
abolished certain import taxes and export subsidies, and made importa nt reforms to its competition, 
government procurement, public info rmation and intellectual property regimes.  The large number of 
bilateral and regional FTAs has given rise to comme nts on administrative complexity, but this has 
been the direct result of the lack of political c ourage in the leading globa l economies to move ahead 
with liberalization and multilateral opening up.  If it had not been fo r this decisive move towards WT/TPR/M/220 
Page 38  
 
  openness on the part of Chile and its firm commitm ent to multilateral negotiations, with the active 
participation of Ambassador Matus, there would not  have been so many statements by ambassadors 
and representatives in this room today. 
273. Chile has been persistent and consistent in implementing its economic and trade policies over 
several decades.  It is its open economy, with trad e growing at a annual average rate of 26 per cent 
over the past five years, its strong macroeconom ic, fiscal and monetary policies, shown by the 
extraordinarily low percentage of its public de bt at 7 per cent of GDP, and its institutional 
strengthening, that have allowed Chile to achieve su stained levels of growth  of 5.4 per cent annually 
on average since 1990, with a high level of invest ment amounting to 23 per cent of GDP, attaining 
one of the highest levels of per capita income in  Latin America at US$10,000, bringing down poverty 
levels over the decade by 7 percentage points fo r 14 per cent of the population living below the 
poverty threshold.  The implementati on of consistent counter-cyclical fiscal policies, a rare example 
in the excessive world of today, will enable Chile to  show a slight increase in GDP at the end of 2009, 
when the vast majority of developed countries will see their economies decline.   For the future, Chile 
needs to lessen its high dependence on external sources of energy and to diversify its exports further 
so as to reinforce its development process. 
274. Concerning certain measures affecting imports, we  note with concern that Chile still applies 
the price band system for wheat, wheat flour and su gar, although two WTO Pane ls ruled against it.  
We urge the Chilean Government to give effect to the Panels' recommendations as soon as possible.  
We welcome the recommendations contained in the WTO Secretariat's Report on lowering bound 
rates in order to provide MFN partners with great er certainty.  We also suggest that the Chilean 
authorities consider the possibility of making furt her commitments on services at the WTO as Chile 
has only made commitments in five of the 12 sector s of the General Agreement on Trade in Services 
and, in general, Chile's legislation on market ac cess is markedly less liber al than the commitments 
undertaken within the WTO framework. 
BOLIVARIAN REPUBLIC OF VENEZUELA 
 
275. For Venezuela, Chile is a key actor in our re gion, not only because of the growing size of its 
economy and the potential this represents, but al so because of the economic, political, trade and 
historical links that unite us with Chile.  At th e trade level, although Chile's exports of goods to 
Venezuela only amounted to barely 2 per cent of th e total value of its expor ts in 2008, it should be 
noted that since the previous Review of Chile's trade policy, their value has doubled and is rising 
sharply.  Our bilateral relations come under the framework of Economic Complementarity Agreement 
No. 23, under the LAIA, with the aim of cr eating an expanded ec onomic area between the 
two countries.  We hope that the revival and deepeni ng of economic and trade re lations in recent years 
will initiate a mutually beneficial  process of trade exchanges. 
276. In the Reports by the Secretariat and the Gove rnment, our attention has been drawn to the 
way in which this Member has achieved positive gr owth in trade and the economy in a difficult 
international context and moreover despite the impact of a global fi nancial and economic crisis that 
has affected us all. 
277. According to these Reports, we see with satisfacti on that Chile has lessened the percentage of 
the population living below the poverty threshold, from 21 per cent in 2000 to 14 per cent in 2008, as 
a result of the implementation of domestic policies fina nced to a large extent by the increased revenue 
earned from its trading activities.  In this connecti on, we call on Chile to make greater efforts to 
improve the distribution of income among its population. 
278. Venezuela recognizes that Chile has had to make great efforts in order to attain its positive 
position in international trade.  In this connection,  it should be emphasized that Chile's geographical  WT/TPR/M/220 
 Page 39 
 
 
  distance from other markets has been a challenge which the country has effectively confronted.  
Nevertheless, the trade and economic example of Chil e is not easily transposable to other scenarios or 
other developing countries. 
279. We also note with interest that Chile has im plemented certain policies to develop production 
and, consequently, contingency measures for certain key sectors in its economy, which are not 
necessarily in line with the free market objective advo cated in this forum.  We should not lose sight of 
the fact that Chile, as a developing country, also n eeds to make use of its political tools to encourage 
the development of small-scale producers and SMEs, which are facing an increasingly complex international environment.  This  delegation understands the intent and need for some restrictive 
measures implemented for safety, health and enviro nmental reasons, interests that should prevail over 
any other countries' trade or economic considerations. 
280. Lastly, we acknowledge the efforts made by th is Member at the multilateral and regional 
trade levels, particularly in this forum in which it actively participates and shows decisive leadership 
in almost all the areas that are the subject of discu ssion at the WTO.  In this connection, we encourage 
Chile to continue to play a proactive role for fair er and more equitable trade that takes into account 
the real needs of all developi ng and least developed countries. 
CUBA 
 
281. Both the Reports recognize that Chile achieved  sustained growth of its economy and foreign 
trade between 2003 and 2008, when there was a positive balance, mainly  as a result of the surplus in 
Chile's trade balance.  Per capita GDP more th an doubled between 2003 and 2008, making Chile one 
of the foremost countries in the region as far this indicator is concerned, and positive results have 
been achieved following the efforts made to alle viate poverty and improve income distribution, 
although more remains to be done in these areas. 
282. This favourable situation has enabled Chile to  be in a better position to contend with the 
deterioration in the terms of trade, as well as the drop in demand for its exports, in external credit and 
in the prices of its main exports such as copper, as a result of the global crisis that has affected all 
countries since 2008.  In this connection, Chile has directly injected money into the pockets of the most needy families and through the Procredit initia tive has supported loans for consumers and SMEs. 
283. In addition, the Chilean delegation's active par ticipation in the Doha Round negotiations and 
the role of its Ambassador, Mario Matus, as Chai r of the General Council during the difficult period 
of preparations for the Ministerial Conference should be underlined. 
284. As shown in the two Reports, Chile has lo w and harmonized bound and applied tariffs and 
has unilaterally liberalized some. 
285. Some Members, notably developed countri es which have numerous and complex trade 
protection features in their markets, particularly in  agriculture, have criticized and called on Chile to 
reduce even further or eliminate its limited domestic policy tools. 
286. No reference has been made in this Review a nd in those of other countries, however, to the 
considerable difficulties encountered by devel oping countries with open economies like Chile in 
increasing and diversifying exports and markets, a nd if no solution is found the integration of 
developing countries in international tr ade will continue to be an illusion. 
287. There has been no talk of tariff escalation, which restricts the export of more processed 
products with higher value added, of comple x and mixed tariffs, of quantitative increases and 
tightening of complex technical standards and sanita ry and phytosanitary measures, including private WT/TPR/M/220 
Page 40  
 
  standards, or of the multimillion agricultural subsid ies in developed countries, which also have an 
impact on Chile's exports. 
288. Furthermore, there has been no mention either of the tendency of foreign investment to focus 
on primary extractive sectors such as mining and on services such as electricity, water and telecommunications, and the lack of interest in i nvesting in innovative and high-technology industries, 
which generate developm ent and produce goods with higher value added. 
289. Cuba and Chile both figure high on the Huma n Development Index published by the UNDP 
annually, and share the priority objectives of ec onomic and social development of our respective 
countries, and integration and cooperati on in Latin America and the Caribbean. 
290. In February 2009, the President of Chile, Michelle  Bachelet, paid an official visit to Cuba, the 
first in over 30 years.  She was accompanied by a large number of government officials and 
businessmen and inaugurated the XVIII
th International Book Fair 2009, where Chile was the guest of 
honour.  Its stand received the prize for the best stand among foreign exhibitors. 
291. On that occasion, our Heads of St ate agreed with the President of  Chile's words that "the most 
important thing in our region today is political  dialogue, unity for common goals, respecting the 
diversity of different models, different processes" a nd "the only way of really speaking of integration 
and not rhetorically is to become integrated around elements that unite us, but  respecting diversity and 
the processes in each of our countries". 
292. A bilateral agreement on the reciprocal promoti on and protection of investment has been in 
effect since 2000 and last year the Economic Comp lementarity Agreement between the two countries, 
signed within the LAIA frame work, came into force. 
293. Bilateral trade and investment are not up to th e potential that exists to go way beyond the 
current level of some tens of millions of dollars and there are important areas to be explored and 
developed such as biotechnology, informatics a nd tourism, on which we must work together. 
294. Bilateral trade of around US$ million last year shows a deficit for Cuba, but the President of 
Chile asked businessmen from her country and Cuba, m eeting in Havana, to work on increasing trade, 
particularly Cuban exports, and to open up new areas for investment. 
295. On the occasion of the presidential visit to Cuba, a number of coopera tion agreements were 
signed, including an agreement to develop coopera tion programmes between the Ministry of Foreign 
Investment and Chile's Cooperation Agency and an  agreement on forestry cooperation between the 
Ministries of Agriculture.  Agreements on sectors su ch as health, science and technology, sports and 
biotechnology were initialled and will help to strengthen the existing friendly relations and 
cooperation. 
296. Thirteen areas have been identified for th e development of initiatives and programmes of 
importance to both countries and for regional coope ration.  These include forestry, agriculture, 
fisheries and aquaculture, health, including the transfer of technology and training, science and 
technology, including agricultural biotechnology and biomedicine, mining, as well as trade and export 
promotion. 
297. Subsequently, in April this year, a coopera tion agreement was signed between ProChile, 
Chile's export promotion body, a nd Cuba's Foreign Trade Promotion Centre (CEPEC) in order to 
enhance and develop bilateral tr ade and economic relations and ex change experiences on long-term 
strategies to develop exports.  WT/TPR/M/220 
 Page 41 
 
 
  298. For our part, we renew our commitment, expressed at the highest level, to make every effort 
to ensure that the agreements signed by the tw o countries are implemented and to do everything 
within our power to expand and st rengthen our links in all areas, including the economy and trade. 
EL SALVADOR 
 299. We note with satisfaction that since the pr evious Review in 2003, Chile's trade and 
investment regime has remained marked by openness,  transparency, predictability and inter sectoral 
neutrality.  Chile's trade and investment polici es, formulated through macroeconomic management, 
have become the foundations of its economic grow th and its capacity to implement counter-cyclical 
measures, particularly to offset the global fina ncial crisis which took us unawares last year. 
300. According to the Government of Chile's Report,  despite the seriousness of the international 
crisis, Chile is well prepared to confront it becau se of its duly regulated and capitalized financial 
regime, the high level of credibility of its macro economic institutions, and an  appropriate monetary 
policy regime. 
301. One of the most outstanding features of Chile's trade policy regime is the role played by 
FTAs.  According to the Secretariat's Report, by June 2009, Chile had 21 trade agreements in effect 
with 57 trading partners, including El Salvador;  13 of these agreements, signed with 18 partners, 
were concluded during the period 2002-2009, the peri od under review.  This shows that over 92 per 
cent of Chile's total trade in goods is covered by an FTA. 
302. For El Salvador, one of the aspects worthy of a ttention in this Review is the importance Chile 
attaches to SMEs, technological innovation and regional development, incorporating incentive 
programmes, implemented through horizontal measures in favour of SMEs and the other 
aforementioned sectors.  In the structure put in pl ace by the Chilean Governme nt for this purpose, the 
incentives consist of tax concessions, financing of investment and research and development, and 
support for business management, inter alia . 
303. As regards trade negotiations, trade between Chile  and El Salvador is growing, predating the 
signature of our trade agreement, with an av erage annual rate of growth of 42 per cent. 
304. According to data for the period 1999-2008, in term s of investment, El Salvador is one of the 
signatories to the agreement that  receive the largest amount of investment from Chile in the 
electricity, financial and services sectors, inter alia . 
305. The trade balance shows a surplus for Chile.  Currently, 113 companies export 178 different 
products to El Salvador.  The main Chilean products  imported include petrol, jellies, marmalades, and 
peach pulp, apples, cards, towers and lattice ma sts, plastic sheets and laminates, grapes, inter alia .  As 
regards Salvadoran exports, these include cane sugar (which accounts for 55 per cent of our exports), 
machinery, tubes and spare parts for perforating machinery, paper and corrugated cardboard, plastic 
furniture, other plastic products, medicines, and brooms. 
306. Under this trade agreement, the Presidents of Ch ile and El Salvador, respectively, also signed 
memorandums of understanding in orde r to strengthen relations in th e education and cultural sphere 
and to set up a consultation and political cooperation mechanism.  There is also a memorandum of 
understanding between the Salvadoran Ministry of the Economy and the Chilean Ministry of Foreign 
Affairs focusing on cooperation, which has allowe d participation in fellowships, workshops and 
seminars intended to reinforce El Salvador's export infrastructure and its trade negotiations. 
307. Regarding the trade negotiations in this forum, we note that Chile plays an active role in the 
various areas of negotiation under the DDA, maki ng negotiating proposals (separately or in WT/TPR/M/220 
Page 42  
 
  conjunction with other Members) together with other Members that share similar interests, for 
example, the Cairns Group, the agricultural G- 20 and the Friends of Anti-Dumping Negotiations 
(FANs) group. 
308. We also note that Chile occupies the high office of Chair of the General Council of the World 
Trade Organization, as well as the Chair of the WTO Services Council, inter alia . 
309. In all the forums in which it participates, Chile  has demonstrated its capacity for balance, 
making constructive contributions to the discussi ons, respecting the sensitivities and degrees of 
flexibility which each Member of  this Organization displays. 
310. Concerning intellectual property, Chile and El Salvador share common objectives in the 
negotiations under way in this forum, taking an active part in discussions in the TRIPS Council, 
recognizing the importance of the development dime nsion and the function of intellectual property 
protection. 
311. Holding the view that intellectual property be nefits and provides a favourable environment 
for development and reinforcement in areas such  as innovation and protection of the intangible 
commercial assets of Members, Chile, together w ith other Members (both developed and developing 
such as El Salvador) has fostered important in itiatives such as the negotiations on establishing a 
multilateral system for the notification and registration of GIs for wines and spirits, a system that does not impose any excessive burdens on Members. 
312. In this connection, we should  like to express to the Government of Chile our most sincere 
congratulations on the creation of industrial property tribunals, and also the ta x and customs tribunals, 
which will facilitate the protection of intangible asset s and will be of benefit to the investment 
environment that Chile has created.  WT/TPR/M/220 
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  V. REPLIES BY THE REPRESENTATIVE OF CHILE AND ADDITIONAL 
COMMENTS 
313. We once again thank delegations for their positive comments on Chile's trade policy, the 
handling of the economic crisis and the reforms adopted in the area of customs, government 
procurement, competition policies and intellectual property. 
314. I shall divide this presentation into three sections.  First of all, I shall deal with the concerns 
raised by the Chair of the Trade Policy Review Body,  then the questions of the Discussant, and finally 
the most frequent questions and comments by delegations. 
I. CONCERNS OF THE CHAIR 
315. The Chair raised the following concerns:  (1) the new measures that Chile is considering 
adopting to overcome the crisis;  and (2) whether Chile will consolidate its unilateral and bilateral 
openness at the WTO, both as regards goods a nd services, a concern referred to by several 
delegations. 
Measures adopted by Chile to overcome the crisis 
 316. As we shall explain, after the financial crisis Chile adopted a proactive series of measures, but 
without resorting to trade restrictive or protectionist measures. 
317. The basis for the revival plan lay in the estab lishment of the so-called "structural surplus 
rule", which enabled Chile to face the crisis using its  own resources.  With these resources, Chile put 
into effect a US$40 billion plan which, although it may seem modest to many Members, was together 
with that of Korea one of the most ambitious in terms of GDP, representing some 4 per cent of GDP.  
We shall not dwell on the details of the measur es adopted or the amounts involved, but a breakdown 
has been included in the replies already provided in writing. 
318. The result of the government package will be that  the fiscal deficit for 2009 will be less than 
one-seventh of the savings over the period 2004-200 8 and the 3.5 per cent growth projection for 2010 
mentioned has been revised upwards to around 4.5 to  5.5 per cent annual growth, with growth of over 
5 per cent for the last quarter of 2009. 
319. For these reasons, and with regard to the Chair's question, at present Chile is not considering 
the adoption of additional stimulus measures but is rather focusing on conso lidating and utilizing the 
package of incentives already initia ted in recent months.  Nevertheless, we are aware of our 
shortcomings and weaknesses, for example, income distribution and the current levels of poverty, 
where much remains to be done.  For this reason, next year's budget will include an average increase 
in spending of around 4.3 per cent, but social spending will rise by over 6 per cent.  The budget for 
education - the essential key to ending poverty an d unequal opportunities - will increase by 6.1 per 
cent in the budget. 
Consolidation of Chile's openness at the WTO 
 320. For Chile, the ideal is to have comple te openness and liberalization under the 
WTO framework.  However, as the pace of multilatera l negotiations is not moving ahead at the speed 
we need, our country has decided to explore the unilat eral and bilateral path to trade liberalization.  
We are ready to extend this unilate ral and bilateral opening in Geneva to the extent that in the WTO 
we are able successfully to meet th e challenges of this Round.  This is why Chile has been in favour 
of ambitious formulas in NAMA and in agriculture .  We also said at the 2008 Signalling Conference WT/TPR/M/220 
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  that we were ready to improve our services offe r provided that other Members made equivalent 
efforts. 
II. COMMENTS BY THE DISCUSSANT 
321. Ambassador Guth asked:  What is Chile's strategy regarding RTAs inasmuch as some 
agreements are of partial scope and had been notified under the Enabling Clause? 
322. As outlined in the introductory presentation, what  Chile is seeking is to negotiate far-reaching 
and comprehensive agreements, in other words (i) hi ghly ambitious in terms of the number and detail 
of the disciplines concerned;  and (ii) the greatest possible degree of liberalization in market access, even total liberalization.  This has not proved possibl e, however, because the desire of a single party is 
not sufficient.  In many instances, trading partners do not have the same aspirations as Chile in all the 
areas and the results of the negotiations will depend  on the balance achieved.  In any event, Chile 
wants its agreements to be covered by Article  XXIV of the GATT and Article V of the GATS. 
Prohibition on importing used motor vehicles 
 
323. Chile reaffirms that the purpose of this measure  is not to protect the domestic industry as we 
do not have any motor industry.  The reason for this prohibition is to ensure that there is a modern, 
safe and environmentally friendly fleet of motor vehicles, as reflected in paragraph 63 of the 
Secretariat's Report. 
Price band system 
 
324. The Discussant asked about the be nefits that would arise from a change in the system.  The 
advantage for Chile would be to comply with its in ternational commitment.  This change to the price 
band system is contained in the draft law sent to Congress and is intended to implement the decisions and recommendations of the WTO Dispute Settlement Body.  In practical terms, the measure will - 
unfortunately - increase tariffs on im ports of these products into Chile. 
Intellectual property 
 
325. Ambassador Guth sought an explanation of the proposals in the draft legislation amending 
Chile's regime and, in particular, the enforcement of  rights and their effects.  This issue will be dealt 
with below when responding to all the concerns. 
Link between safeguard measures and the creation of customs and tax tribunals 
 326. There is a little confusion here which needs to  be cleared up.  Trade protection measures are 
within the competence of the National Commission on Price Distortion and not that of these tribunals, in other words, there is no linkage. 
More liberalization of services 
 327. As we stated in the reply to Ambassador Majo r at the 2008 Signalling Conference, Chile is 
ready to improve its services offer substantially su bject - naturally - to the efforts made by other 
Members in this respect. 
Need to improve income distribution 
 
328. One of the Government of Chile's priorities has been to elaborate and implement social 
protection programmes so that the balance achieved gi ves support to the most needy.  As an example,  WT/TPR/M/220 
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  we will mention only three cases:  (i) recently a far-reaching social security reform was adopted 
intended to ensure a decent retirement pension to the population as a whole;  (ii) Chile is known for its 
extensive housing policies.  Currently, the aim is not only to give a roof to those without, but to improve the quality and standards of housing;  and (iii) education.  Th ere is agreement that education 
which is universal - as is presently the case for al l Chileans - is not enough but that its depth and 
quality have to be improved.   We are working towards this.  As al ready indicated, this is reflected as a 
whole in the social spending in the fiscal budget for 2010 and in the importance of the social 
component in Chile's government policies. 
III. OTHER CONCERNS RAISED BY MEMBERS 
329. Regarding the issues and questions most frequently  raised by the delegations, other than those 
already mentioned, I shall give the floor to  each of my colleagues to deal with them. 
Government procurement 
 
330. Many speakers referred to Chile's government procurement regime and to Chile's possible 
accession to the Plurilateral Agreement on Government Procurement. 
331. In this connection, Chile has a modern, transp arent and non-discriminatory regime which, in 
our view, fully complies with GPA standards.  Th e reason why Chile has remained as an observer is 
not so much a lack of transparency  or the inability to attain the GPA standards, but rather two types of 
concern. 
332. Firstly, the few opportunities for access and r eal business provided by the Agreement for a 
large number of suppliers in small economies such as ours because the MFN clause is not applied in 
the coverage of offers:  there are long lists of exemptions, high thresholds of application, and 
numerous exceptions have been incor porated by Members in the annexes. 
333. Secondly, we are concerned that in excha nge for the small range  of business opportunities 
offered to small economies such as Chile, the GPA lays down a series of requirements regarding procedures that make it rigid and are inconsistent with the existing technological tools and Chile's 
attempts to modernize its regime. 
334. For these reasons, Chile has mainly sought to ne gotiate on this aspect bilaterally, streamlining 
procedures, lowering or eliminating application th resholds - for example, in the agreement with 
Central America - and above all guaranteeing real and effective transparency in procurement 
procedures.  Nevertheless, Chile follows closely the process of revising the GPA and does not exclude 
reviewing its position in the future in th e light of the outcome of this work. 
Price band system 
 
335. Turning to the price band system, we rea ffirm Chile's willingness to comply with the 
conclusions and recommendations of the DSB.  Neve rtheless, the matter is within the competence of 
the Legislature so it is difficult to define precise date s for the entry into force of the law, but we wish 
to reiterate our intention to approve the ne w legislation before the end of the year. 
336. The new legislation proposed replaces the specific duties calculating according to the 
parameters existing in the current law by a fixe d specific duty determined on a permanent basis. 
337. As regards the products subject to the price band system, although the mechanism applies to 
wheat, wheat flour and sugar, there are some differe nces between the system applicable to wheat and 
wheat flour, on the one hand, and that applicable to sugar, on the other.  For this reason, as well as the WT/TPR/M/220 
Page 46  
 
  protectionist effects that the new system will have on domestic prices and, moreover, as the price 
band system for sugar has never been questioned in the WTO, it is not intended that the amendments 
currently under consideration will be extended to sugar. 
Intellectual property 
 338. Several countries requested further information on the enforcement of intellectual property in 
Chile.  There is a draft law intended to reform Law No. 17.336 on intellectual property, the most 
important reform for the past 30 years.  This draft essentially consists of three parts:  on the one hand, 
it reforms the enforcement regime, developing an d improving civil and criminal proceedings for 
piracy and increasing the penalties for infringement of rights.  It also includes limitations and 
exceptions to copyright and related rights;  and fina lly it proposes a system to  regulate the liability of 
Internet service providers for infringement of copy right or related rights that may be committed 
through their networks.  In this way, it is hoped to adapt the intellectual property regulations to new 
technological developments, in an equitable manner, covering the inte rests of authors, performers, 
businesses, and users. 
339. At the end of September 2009, this draft was at  the third and final stage of the constitutional 
procedure.  The Chilean Government hopes that the draft will be finalized within the present 
presidential term, which ends in March 2010. 
340. Other countries have referred to the protecti on of undisclosed information on new chemical 
substances.  This was introduced into Chile's le gislation in 2005, representing one of the major 
aspects of the most important revision of Law No. 19.039 on Industrial Property since it was enacted 
in 1991. 
341. The system provided in the Industrial Propert y Law contains the legal framework for the 
protection of undisclosed information on products th at contain new chemical substances in Chile, 
laying down the conditions under which this prot ection must be granted.  During the term of 
protection, which will be five or ten years dependi ng on the case, the author ity may not disclose the 
information or use it for the purpose of granting an authorization for another product. 
342. It should be pointed out that the system for the protection of undisclosed information on new 
chemical substances is already in use in practice and up till now several pharmaceutical companies 
have submitted requests and obtained the registrati on of new chemical substances, with protection of 
undisclosed information, in a manner consistent with the requirements laid down in Chilean 
legislation. 
343. There is currently a draft revision of the ru les governing the protection of undisclosed 
information on pharmaceutical products (Decree No. 153) .  In 2008, the Ministry of Health presented 
it for public consultation.  Once the period for co mments ended, the draft decree was sent to the 
Comptroller's Office of the Republic (CGR), an autonomous State body responsible for controlling the legality of administrative acts, which is an indi spensable prior step before it can be enacted.  The 
decree is currently being reviewed by the CGR. 
Appeals to customs tribunals 
 
344. As several countries have acknowledged, the National Customs Service has developed, 
implemented and applied a series of reforms for the purpose of facilitating trade through intensive use 
of IT, essentially in view of the sustained growth in international trade operations. 
345. We believe it important to point out that, on 27 January 2009, Law No. 20.322 strengthening 
and improving taxation and customs judicial matters w as published in Chile's Official Journal.  This  WT/TPR/M/220 
 Page 47 
 
 
  Law establishes the new judicial system for custom s matters, based on the principles of independence, 
expertise, efficiency and efficacy, ju stice, integrity and progressiveness. 
346. Under this new regime, the administration of cu stoms-related judicial matters is completely 
independent of procedures regarding customs litigation, even at the first judicial level, and specialized 
and independent tribunals have been set up to h ear and rule on taxation and customs matters, which 
now come directly under Chile's Supreme Court. 
347. To conclude, I should like to refer to three speci fic issues:  (1) technical barriers to trade:  
(2) fisheries;  and (3) India's concern regarding sanitary requirements for the entry into Chile of 
certain products. 
348. Regarding technical barriers, several countries asked about recognition agreements.  As the 
Secretariat's Report points out in paragraph 108, Ch ile does not have any recognition agreements on 
technical regulations.  However, under the APEC, it participates in Part I of the Electrical and Electronic Equipment Mutual Recognition Agreement a nd is considering in the future becoming party 
to Part II.  Chile is also giving consideration to participating in the Sectoral Mutual Recognition 
Agreement on Foodstuffs.  It does not have any mutu al recognition agreements at the bilateral level 
because this type of agreement first requires the mi nimum bases that we are laying down in the FTAs 
such as committees on technical barriers and disciplin es that allow interests to be taken into account 
and coordinated with the various regulatory agencies.  Chile is, however, starting to evaluate the 
possibility of establishing such agre ements because we consider that these are important instruments 
for trade facilitation. 
349. Turning to fisheries, several Members have underlined the role played by Chile in the 
negotiations on fisheries subsidies.  These positive co mments incite us to move ahead in this regard, 
which goes beyond trade.  We reiterate our interest  in an ambitious outcome, with strong disciplines 
that prohibit subsidies, with a few exceptions, wh ich include developing coun tries, in other words, 
subsistence fishing in accordance with developmen t criteria.  In any event, the exceptions must 
always be subject to the requirements of conserva tion and handling that prevent over-exploitation of 
the resources. 
350. With regard to a particular co mment by one delegation, I should like to point out that the need 
for flexibility in small scale fisheries in devel oped countries has not been demonstrated.  On the 
contrary, history shows that its im pact on resources is much greater than similar fishing in developing 
countries and, therefore, could open up the door to  erosion of the objectives sought in this process. 
351. We have noted the concerns expressed by Indi a and we would appreciate it if we could be 
provided with further details. 
DISCUSSANT 
 
352. I would like to thank the delegation of Chile  for providing comprehensive feedback to 
Members' questions and comments raised during the first day of this Review. 
353. On the first day I finished my statement by lis ting some of the challenges Chile is currently 
facing and will face in the near future in order to c ontinue the miracle of Chile.  Let me now elaborate 
a little further on these challenges:  first, economic and trade-related challenges, then turning to social 
challenges and finally environmental and energy-rela ted challenges.  Let me recall what an economist 
said about making forecasts.  I quote:  "As for the future , the task is not to foresee it but to enable it".  
Chile has shown in the past that it enabled its future , which is now its present.  I am sure that Chile 
will also find the right answers to new challenges. WT/TPR/M/220 
Page 48  
 
  Economic and trade-related challenges 
 
354. The most imminent challenge is  naturally the global financia l and economic crisis.  Being 
highly integrated in the global economy, the economy of Chile was hit by the global crisis both on the 
trade and the financial fronts.  The sound policy framework, underpinned by an inflation target 
regime, a structural budget rule, and a flexible exch ange rate, allowed the economy to enter the crisis 
with a fundamentally robust position.  The large fiscal savings accumulated in past years had been 
critical to preserve stability and to cover Chile's fi nancing needs.  However, the principal economic 
effects of the financial crisis still include decreas ed external trade and commodity prices affecting 
Chile's largest export product - copper.  Low invest or and consumer confidence have sharply reduced 
domestic demand and suspended investments.  Neve rtheless, Chile has remained committed to free 
trade and abstained from protectionist measures. 
355. Although Chile has been rightly praised for a well-balanced and coordi nated policy response 
to the crisis, the outlook still remains highly depende nt on the external environment and the speed of 
the global recovery.  Therefore, I would like to en courage Chile to continue with efforts towards 
economic diversification and to follow with de termination its course to economic recovery. 
Social challenges 
 
356. The unemployment rate reached nearly 10 per cent at the beginning of this year, with mining, 
construction, agriculture, livestock, fishing and forestry  most affected.  However, the social effects of 
the crisis are kept within limits largely due to the Government's commitment to fight rising 
unemployment and target the most vulnera ble households in the fiscal packages. 
357. As we have heard, Chile has succeeded in re ducing poverty levels significantly and has the 
lowest poverty rate in Latin America.  But inco me inequality still remains a major challenge, although 
the poverty gap has decreased much since 2003.  So me progress has been made in recent years, for 
example, through a comprehensive pension reform in 2008 that benefits people with lower income, 
older Chileans who lacked any significant retirem ent support, as well as women and people with 
disabilities. 
358. Chile also continues to struggle with the quality  of publicly provided primary and secondary 
education.  The Government has put in place a series of measures intended to improve matters, inter alia , by means of enhanced opportunities for teacher training.  Chile is to be commended for its 
innovative approach to social policy and we hope th at these plans will deliver the expected results in 
the near future. 
Environmental and energy-related challenges 
 
359. Chile's great extension makes for a wide vari ety of climatic conditi ons and Chile has the 
wealth of several mineral resources.  However, it faces major inter-related challenges of minimizing 
the environmental impact of economically important  sectors such as mining, forestry and aquaculture, 
and mitigating and adapting to climate change.  Since 2004, Chile has continued to strengthen its 
environmental legislation, institutions and policies.  For example, last year Chile adopted a National 
Climate Change Action Plan for 2008-2012 whic h includes activities for studying impacts and 
vulnerabilities;  funding adaptation measur es and supporting mitig ation endeavours. 
360. Also, Chile has limited domestic energy resources, and as a result it currently imports the bulk 
of its energy needs.  There has been significant growth in the rene wable energy sector in the past 
five years and some progress in terms of "green bu siness" strategies.  But it is generally understood 
that Chile can do better in these fields.  WT/TPR/M/220 
 Page 49 
 
 
  361. All in all, it seems that for most of its challe nges, Chile is working on the solutions and if not 
quite there yet, it is definitely on the right way. 
362. Now, I am turning to my other role as a Di scussant - being sort of a schoolmaster and 
assessing how well the student has done  in doing its homework i.e. repl ying to the questions posed by 
Members.  It seems that Chile has replied to Members' questions in a comprehensive manner, 
providing substantial information and clarifying futu re prospects of trade policy measures.  However, 
before giving Chile the "A plus", I have spotted so me replies that may need follow-up.  Let me give 
just a few examples on the topics that I myself commented on last Wednesday - including RTA 
strategy and the determination of the need for contingency measures. 
363. One Member criticized the lack of available data on imports/exports under FTAs - and that it 
is not possible to calculate the utilization rate of th e FTAs.  Chile's reply is that they undertake rough 
estimations about imports under FTAs by summing up certificates of origin issued by Chile.  The 
authorities are working on better statistical reports regarding the utilization of FTAs, which may be 
published online by the end of the year.  I woul d very much like to welcome this work on the 
improvement of statistics, which should allow an a ssessment of the real u tilization of Chile's FTAs, 
which - as we have heard - represent su ch a large share of Chile's trade. 
364. Another Member enquired about the meaning of  "unforeseen developments", which led to 
initiation of a safeguards investigation in September 2009.  Chile refers to the respective notification 
of the safeguards initiation, but I wonder whether it could have added a short summary of the related 
reasons for initiating that investigation, for the bene fit and education of all WTO Members.  Indeed, a 
number of issues mentioned in the Trade Policy Revi ew may have been discussed in the individual 
committees.  However, this does not preclude fu rther explanation in the trade policy review 
mechanism as it is - after all - first and foremost a transparency exercise. 
365. These were just some minor shortcomings in an otherwise very good performance of our -
almost - model student. 
366. After completing this exercise, we can concl ude that Chile is on good track to overcome 
remaining challenges.  Therefore, I congratulat e Chile on completing the task so successfully and 
thank it for its hard work. 
URUGUAY 
 
367. In the opening session Uruguay expressed its concern at the Chilean Government's 
announcement of the adoption of safeguard measur es against powdered milk and some types of 
cheese.  We have listened carefully to the Report and the subsequent replies by the distinguished 
delegation of Chile. 
368. We have to point out, however, that our concer n of yesterday has been transformed into the 
certainty of today, because during this period the safeguard measures on dairy products were finally 
approved. 
369. This is why the delegation of Uruguay finds itsel f obliged to repeat its call to the Chilean 
Government to revise this measure as soon as possibl e.  This request is being made from the deepest 
bilateral esteem, to which we bore witness yesterday,  from respect for Chile's domestic affairs, from 
the esteem which Uruguayans have for the distinguished  Government of Chile, and in particular from 
the high consideration for its trade policy which, as ma ny have said here, is in  general terms a model. 
370. It is precisely this that is one of our systemic concerns.  If Chile, which serves as a model of 
how to conduct a successful and predictable trade policy, which offers a re gional and global example WT/TPR/M/220 
Page 50  
 
  of how to contend successfully with the crisis, whic h has always been in the front line in promoting 
"Standstill", if Chile, in short, succumbs to the prot ectionist demands of a sector, what can we expect 
at the general level and for the rest of a long period of economic weakness and increasing 
unemployment? 
371. We reiterate our doubts concerning the causal link between Chilean imports of our dairy 
products and the possible existence of "damage which it would be difficult to repair", as required by 
the Agreement on Safeguards.  We underline on ce again the importance of these exports for our 
country and reaffirm our conviction that in the case of dairy products we are faced with a global 
imbalance, against which the adoption of these and ot her measures we have seen in recent months not 
only does not help to benefit any efficient producers but also in the end prolongs the crisis in the 
sector and retards the indispensable readjustment. 
372. This is perhaps part of a more  general horizontal debate whic h we need to hold in another 
forum and we will assuredly soon have a bilateral opportunity to discuss th ese measures with Chile. 
INDIA 
 373. I would like to thank Chile for the answers provi ded to our written questions, as well as the 
Discussant, who has done a very good job. 
CHINA 
 
374. My delegation congratulates Chile on the successf ul conclusion of its Trade Policy Review, 
and we would like to express our appreciation to th e Discussant for his excellent performance.  We 
appreciate the prompt responses to our questions  and we will transfer them to our capital. 
375. As we observe in both Reports although Chile has been affected by the current critical global 
financial crisis, we still see the encouraging deve lopment of its economy because of its excellent 
financial and trade policy and organization of the customs. 
NEW ZEALAND 
 
376. I just wanted to note that we have a follow- up question on the safeguard measures and we will 
submit it to the Secretariat later today. 
EUROPEAN COMMUNITIES 
 
377. As we have already mentioned, the European  Communities and Chile have enjoyed extremely 
close trade relations for over five years under our A ssociation Agreement.  Indeed, next week we will 
meet with our Chilean friends in Brussels for th e seventh meeting of the Association Committee. 
378. We therefore follow very closely and regularly how Chile's trade policy is developing.  In any 
event, this Trade Policy Review has contributed to wards a better understanding of the current state of 
its trade policies and practices, and of plans for the future.  As we have also indicated, our overall 
perception of Chile's trade policy is positive, and this  is why we would like to see it continue to be a 
model in defending and applying the benefits of fre e trade, transparency and observance of the rules 
of multilateral trade. 
379. We would like to take this opportunity today to cl arify certain points that were not at all clear 
to us in the replies given by Chile.  We intend to send these additional questions in writing, but I 
should like now to refer to some of them.  WT/TPR/M/220 
 Page 51 
 
 
  380. As regards other charges affecting imports, the following elements are not clear to us: 
381. In reply to our question 7 on the imposition of the "valuation examination" (page 35), Chile 
explains how the corresponding amount is calculated,  but does not make clear the reasons for which 
the "valuation examination" is imposed.  We  would like to insist on this point. 
382. We have not had any reply either to our ques tion 8, which also refers to the "valuation 
examination" and in essence asked whether there might  be a risk that the customs could increase the 
customs value in order thereby to raise the fee ch arged for the "service" in question, which was not 
requested by the importer. 
383. Regarding technical regulations, in its reply to  our question 9 (page 58), Chile stated that 
special certification system 6 was based on recognitio n of certificates of the type, the approval, quality 
stamp and conformity mark issued by certification bodies domiciled abroad, followed by the 
utilization of a sample of the batch or consi gnment, which undergoes the analyses and/or tests 
prescribed in the respective protocols.   In this connection, we should like to know the reason why if a 
certification body domiciled abroad is validated by  the SEC (special certification scheme) additional 
tests are needed to assess conformity. 
384. In its reply, Chile referred to the possibility a fforded to all interested  countries to accede to 
this type of special certification scheme.  Could Chile clarify which body is responsible for initiating 
the application procedure:  the authorities in the foreign country or the certification body itself? 
385. Regarding aquaculture, we should like to clarify a point concerning subsidies for farmed 
salmon.  In fact, this is a follow-up question to Ch ile's reply to our question 41 (page 115).  According 
to the information published on the website of th e Chilean Economic Development Agency (CORFO) 
(www.corfo.cl), the maximum amount of the subsidy, in the form of a bank guarantee, that may be 
given for farmed salmon or to a company providing goods and/or services for such farms is US$8 million.  Could Chile confirm this information?   If it is correct, could Chile provide details on 
the total amount which the Chilean Government h as channelled through the CORFO to provide such 
subsidies to the salmon industry in Chile? 
386. As already stated, these and other questions refe rring to protection of intellectual property and 
maritime transport will be provided in writing at the close of this meeting. 
CHILE 
 
387. Regarding the safeguard measure, we were informed on the afternoon of Wednesday the 7
th 
that the authorities had decided to impose a provision al safeguard measure of 15 per cent.  We do not 
know the details because the measure has not yet been  formalized.  In any event, Chile will notify the 
Committee on Safeguards in due time in accordance with  Article 12.4 to enable countries to have an 
opportunity of consulting Chile on the measure and we  shall transmit the concerns raised by Uruguay 
and those to be transmitted later by New Zealand to our authorities. 
388. We have also noted the additional questions of  the European Communities and shall reply in 
writing in due time. WT/TPR/M/220 
Page 52  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
389. This fourth Trade Policy Review of Chile has be en highly informative, and has afforded this 
Body the opportunity to appraise in detail the evolution of the country's trade policies since 2003.  This was made possible largely by the constructive engagement of Ms Ana N ovik, Ambassador Mario 
Matus, and the rest of the Chilean team.  I woul d also like to acknowledge the valuable contribution 
of the Discussant, Ambassador Eckart Guth, and thank Members for their participation in this 
exercise. 
390. At the outset, I would like to highlight that th is has been a particularly positive Review.  
Members praised Chile for its solid economic perfo rmance during most of the review period, which 
was largely due to sound macroeconomic policies a nd an open trade regime.  Members noted that an 
effective administration of fiscal surpluses has al lowed Chile to apply aggressive counter-cyclical 
policies to respond to the current global economic crisis.  This makes Chile a good example of how 
outward oriented policies, economic specializa tion and prudent macroec onomic management can 
result in rapid growth and offer the means to face  external shocks.  Members also commended Chile 
on its significant progress in reducing poverty levels, but encouraged it to continue its efforts to 
improve income distribution. 
391. Chile has continued to use multiple avenues to enhance its integration into the global 
economy.  During the review period, Chile eliminat ed unilaterally the tariffs on a range of capital 
goods and information technology products.  Chile has al so continued to play a leadership role in the 
multilateral trading system, where it is one of the mo st active participants in  the DDA negotiations.  
RTAs are also an important component of Chile's trade policy agenda.  In this respect, Members 
exhorted Chile to multilateralize the trade liberali zation resulting from the numerous agreements it 
maintains. 
392. Members commended Chile's open, transparent and predictable trade regime.  Noting that it 
maintains an almost uniform MFN tariff rate of  6 per cent, Members urged Chile to reduce its bound 
rates to increase the certainty of its import regime.  Chile was also asked to reconsider the tariff 
surcharge on used goods, and the import prohibition on used motor vehicles.  A number of Members 
questioned Chile's price band system, and sought clarif ication on the steps being taken to bring it into 
compliance with WTO obligations.  Chile stated that  a draft law that would replace the system with 
fixed specific tariffs for wheat and wheat  flour was awaiting Senate approval. 
393. Members acknowledged the measures taken by Chile to facilitate trade and modernize 
customs, including the creation of customs tribunals.  However, some concerns were expressed 
regarding customs appeal procedures.  Chile's safeg uards regime gave rise to a number of questions, 
with concerns expressed about recent safeguard  measures affecting certain dairy products. 
394. Members welcomed Chile's strengthening of its  legal and institutional frameworks in the 
areas of competition policy, government procurem ent and intellectual property rights.  Several 
Members exhorted Chile to join the GPA;  Chile stated that, for the time being, it was not seeking 
accession although its procurement system met GPA standards.  Chile replied to several queries 
regarding intellectual property, including on un disclosed test data protection and copyright 
enforcement. 
395. In addition, Chile replied to numerous ques tions posed by Members concerning specific 
aspects of its services regime.  Noting that Chile's services regime is generally open, Members encouraged Chile to expand its GATS commitments, and to reflect in its services offer the depth of 
commitments it has made under preferential agreements.  WT/TPR/M/220 
 Page 53 
 
 
  396. In conclusion, Members widely commended Chile 's trade regime, referring to it as a model 
for others to follow.  I cannot think of higher prai se than this.  Using trade as a key component of its 
development strategy, Chile has attained one of th e highest income and social development indicators 
in Latin America.  These achievements constitute so lid foundations for Chile to continue raising the 
living standards of its population.  This will require  not only further attention to border measures, but 
also the often more complex task of streamlining behind the border regulations .  Chile's past success 
bodes well for its ability to face this challenge. 
397. I would like to close this Review by thanking once again Ms Ana Novik, Ambassador Mario 
Matus and their delegation, as well as the Discussant and the Members that took part in this meeting.  
I would also like to express my appreciation to the delegation of Chile for the many responses 
provided and look forward to receiving responses to outstanding questions  within one month. 
__________