WORLD TRADE  
ORGANIZATION  WT/REG179/3 
29 May 2007 
 (07-2181) 
Committee on Regional Trade Agreements  
  
 
 
 
FACTUAL PRESENTATION 
Free Trade Agreement 
Between 
The EFTA States and Chile 
(Goods) 
Report By The Secretariat 
 
 
 
This report, prepared for the examinati on of the Free Trade Agreement between the 
EFTA States and Chile has been drawn up by the WTO Secretariat on its own 
responsibility.  The report was requested by the Parties and prepared in consultation 
with them in accordance with the Guide lines on Procedures to Improve and Facilitate 
the Examination Process (document WT/REG/W/15/Add.1).   
Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel:  +41 22 739 5422). 
 
  
 
  WT/REG179/3 
Page iii 
 
  
  TABLE OF CONTENTS 
Page  
 
 
I. TRADE ENVIRONMENT 1  
II. TREATY CHARACTER ISTIC ELEMENTS 4  
A. B ACKGROUND INFORMATION  4 
B. N ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  5 
1. Import duties and charges, and quantitative restrictions 5  
2. Rules of origin 11  
3. Export duties and charges, and quantitative restrictions 14  
C. R EGULATORY PROVISIONS OF THE AGREEMENT  14 
1. Standards 14  
2. Safeguard mechanisms 14  
3. Anti-dumping and coun tervailing measures 15  
4. Subsidies and state-aid 15  
5. Other regulations 15  
D. S ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  17 
E. G ENERAL PROVISIONS OF THE AGREEMENT  17 
1. Exceptions and reservations 17  
2. Accession 17  
3. Institutional framework 17  
4. Dispute settlement 18  
5. Relationship with other agreements concluded by the Parties 20  
ANNEX  22 
 Indicators of trade liberalizatio n under the Agreement and the BCAS 22 
 
 WT/REG179/3 
Page 1 
 
  
  FREE TRADE AGREEMENT BETWEEN THE EFTA STATES AND CHILE (GOODS) 
 
Factual Presentation by the Secretariat  
  
I. TRADE ENVIRONMENT 
1. The Parties to the EFTA-Chile Free Trade Agreem ent (hereafter the Agreement) are Iceland, 
Liechtenstein, Norway and Switzerland (which co mprise EFTA) and Chile.  In 2004, the EFTA 
countries' total merchandise imports accounted for $ 162 billion and exports for $201 billion.  In the 
same year, Chile's total imports accounted for $22 bil lion and exports for $31 billion.  In 2004, Chile's 
share in world total exports and imports was 0.27 an d 0.3, respectively;  the corresponding figures for 
the EFTA countries were 3.17 and 2.32 .  Developments in recent years are pictured in Charts I.1 and 
I.2 below.  
 
0.00.10.20.30.40.5
1997 1998 1999 2000 2001 2002 2003 200405101520253035Chart I.1
Chile:  merchandise imports from and exports to world and EFTA States, 1997-2004
Source :  UNSD, Comtrade databaseUS$ billion US$ billion
Imports from EFTA Exports to EFTALeft-hand scale:
Total imports Total exports Right-hand scale:
 
 
 
 
 WT/REG179/3 
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  0.00.10.20.30.40.5
1997 1998 1999 2000 2001 2002 2003 2004050100150200250Chart I.2
EFTA States:  merchandise imports from and exports to world and Chile, 1997-2004
Source :  UNSD, Comtrade databaseUS$ billion US$ billion
Imports from Chile Exports to ChileLeft-hand scale:
Total imports Total exports Right-hand scale:
 
2. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in 2004, is shown in Chart I.3, on the basis of Harmonized System (HS) sections.  Three 
product categories (prepared foods, vegetables, a nd wood pulp) accounted for more than 75 per cent 
of the EFTA States' imports from Chile; chemicals and animal products accounted for a further 14 per cent.  As to Chile's imports from the EFTA States in 2004, more than 80 per cent were 
classified under four product categories (machinery,  chemicals, optical products, and vehicles and 
aircraft). 
 
  WT/REG179/3 
 Page 3 
 
 
  Wood 3.0
Animal Prods. 6.9
Chemicals 
28.8Minerals 4.6
Vehicles 11.2Stone, plaster 2.4
Pearls 3.5Wood Pulp 
3.0
Animal 
Products 2.9Plastics 
2.3Pearls 1.5Chart I.3
EFTA States and Chile: product composition of merchandise trade, 2004
EFTA's imports from Chile Chile's imports from EFTA
Source :  UNSD, Comtrade databaseOther 1.1
Prepared Foods 
40.7
Vegetables
24.3Wood Pulp
11.5Per cent
Optical 9.0Chemicals 
7.6
Machinery
22.7Base Metals 3.6
Prepared Foods 3.0
Base Metals 8.7Optical 11.6Machinery 
30.6
Machinery 21.7
Chemicals
16.6
Minerals 5.2Plastics 4.4Optical 4.0Other
11.9
Minerals 22.6
Vehicles 10.5Other
14.8
Chemicals
9.7Base Metals
6.1Textiles 5.0
Vehicles 2.9
Pearls 3.0
Vegetables 7.2Base Metals 7.2
Chemicals 20.3Minerals 25.8Chemicals 4.9
Minerals 
24.0Animal Prods. 7.7Base Metals
32.4 Other
12.4
Machinery 16.5Prepared Foods 6.7Total:  US$37.8 million Total:  US$146.5 
Total:  US$162.7 billion Total: US$12.7 billion
Total:  US$201.9 billion Total:  US$9.7 billionTextiles 5.0
Vehicles 11.4Animal Prods. 2.3
Plastics
5.8Miscellaneous 3.7
Other
11.1
Wood 5.5EFTA's global exports Chile's global exportsEFTA's global imports Chile's global imports
Wood Pulp 5.3Other
6.3 Fats and Oils 2.6Base Metals 2.4
 
 
3. Chile's largest export product categories (base metals, mineral products, animal products and 
vegetables), which accounted for 71 per cent of its total exports in 2004, made up 34 per cent of 
EFTA's imports from Chile.  EFTA's largest export product categories (mineral products, chemicals, WT/REG179/3 
Page 4  
 
  machinery and optical products), which accounted for 72 per cent of EFTA's total exports in 2004, 
made up 76 per cent of Chile's imports from EFTA. 
II. TREATY CHARACTERISTIC ELEMENTS 
 
A. B
ACKGROUND INFORMATION  
4. The Free Trade Agreement between the EFTA States and Chile was signed by the four 
EFTA States – namely Iceland, Liechtenstein, Norw ay and Switzerland – and Chile on 26 June 2003.  
The Agreement entered into force for all Parti es on 1 December 2004, following their ratification, 
acceptance or approval.  On the EFTA side, the Agreement was ratified by Norway on 
19 December 2003, by Switzerland on 22 December 2003, by Liechtenstein on 7 May 2004 and by 
Iceland on 6 February 2004.  In Chile, it was prom ulgated by Decree N° 262 of the Ministry of 
Foreign Affairs on 24 November 2004;  despite th e possibility provided for in Article 106.5, the 
Agreement was not applied provisi onally by any of the EFTA States.  Unless otherwise provided for 
in the Agreement, its provisions apply to the tr ade and economic relations between the individual 
EFTA States on one side (referred to hereafter as one of the two Parties), and Chile on the other side 
(referred to hereafter as the other Party), but not to the trade relations between the EFTA States. 
5. The goods and services aspects of the Agreement were notified to the WTO by its Parties on 
10 December 2004.  In the goods area, the Agre ement was notified under Article XXIV of the 
GATT 1994 and the Understanding on the Interp retation of Article XXIV of GATT 1994 as 
establishing a free-trade area (WT/REG179/N/1).1  The terms of reference for the examination of the 
Agreement were adopted by the Council for Trad e in Goods on 11 March 2005 (WT/REG179/2).  The 
text of the Agreement was circulated to the Members as document WT/REG179/1, and is 
also available, together with its Anne xes, on the Parties' official Websites: 
• http://secretariat.efta.int/Web/ExternalRelations/PartnerCountries/Chile  
• http://www.direcon.cl/index.php?accion=tlc_efta_acuerdo_vd  
 6. The Agreement is composed of 12 Chapters, as follows: 
Box I.1:  Preamble  
 Chapter I – Initial Provisions 
 Chapter II – Trade in Goods  Chapter III – Trade in Se rvices and Establishment 
  Section I – Trade in Services 
 Section II – Establishment 
 Section III – Payments and Capital Movements 
 Section IV – Common Provisions 
 Chapter IV – Protection of Intellectual Property 
 Chapter V– Government Procurement 
 Chapter VI –Competition Policy  Chapter VII –Subsidies 
 Chapter VIII – Transparency 
 Chapter IX – Administration of the Agreement  Chapter X– Dispute Settlement 
 Chapter XI – General Exceptions 
 Chapter XII – Final Provisions 
 
                                                      
1 The Parties jointly notified the Agreement under GATS Article V (S/C/N/309).  On 9 February 2005, 
the Council for Trade in Services  referred the Agreement to the CRTA for examination (S/C/M/77).   WT/REG179/3 
 Page 5 
 
 
  7. The Agreement contains a total of 17 annex es.  Annexes IV-VII deal respectively with:  
Processed Agricultural Products;  Fish and other Ma rine Products; Elimination of Customs Duties; 
and Import and Export Restrictions.  Product-speci fic rules of origin are found in Annex I. 
8. No overall implementation period is explicitly st ated in the Agreement.  However, Chile's 
schedules of concessions foresee periods of up to six years;  in addition, for a number of industrial 
products the calendar for the Chile's dismantling of duties was to be agreed upon by 
1 December 2006.  
9. Three bilateral "complementary agreements on trade in agricultural goods" (hereafter referred 
to as BCAs) have been concurrently concl uded between Chile and Iceland, Norway, and 
Switzerland/Liechtenstein.2  According to Article 1 of the Ag reement, the BCAs form part of the 
instruments establishing a free-trade area between  the EFTA States and Chile.  Article 107 provides 
for a strict parallelism with respect to the Partie s' participation in the Agreement and the BCAs. 
10. Therefore the information contained in the BCAs has been incorporated in this presentation so 
as to offer a complete picture of existing trade commitments between the EFTA State and Chile.  
Therefore, unless expressly specified, market access commitments and disciplines described in this 
presentation refer to products covered in both the (main) Agreement and the BCAs.3 
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
11. Each Party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 15 of the Agreement). 
12. The Agreement covers industrial products (H S Chapters 25-97), with the exception of 
products listed in Annex III,4 as well as "processed agricultural prod ucts" (as defined in Annex IV of 
the Agreement) and "fish and ot her marine products" (Annex V). 
13. The Parties cannot increase existing, or introduce new import customs duties on their mutual 
trade of products covered by the Agreement (Article  9.3).  The Parties eliminate duties on all covered 
industrial products as of the Agreement's entry into force, with the exception of those products listed 
in Annex VI, for which Chile will progressively "d ismantle" its import duties (with tariff reductions 
taking place on 1 December of each given year) over periods  lasting four or six years, or to be agreed 
upon by 1 December 2006. The liberalization of customs duties on industrial products may be accelerated by Chile upon decision by the Joint Committee (Annex VI.2).  Should tariff liberalization in the context of the EC-Chile Association Agreem ent be quicker than anticipated, Chile would notify 
the EFTA States and afford them the opportunity to negotiate any improved treatment under the 
Agreement.
5  As regards the agricultural concessions offered by the EFTA States to Chile, the 
EFTA States agree to offer treatment no less fa vourable than that accorded to the European 
Communities (Annex IV.3). 
                                                      
2 BCA texts are found in the Parties' official Websites (see paragraph 5 above). 
3 Article 6 of each BCA specifies the provisions of the Agreement which apply mutatis mutandis  to the 
products covered in the BCAs. 
4 HS headings 35.01 Casein, 35.02 Albumins, 35.05 Dextrins, 35.06 Prepared glues and adhesives, 
38.09 Finishing agents, 38.23 Industrial monocarboxylic fatty acids, 38.24 Prepared binders for foundry moulds or cores, and 38.25 Residual products of the chemical or allied industries. 
5 According to the Parties, these issues were taken up at the Joint EFTA-Chile Committee of 
31 January 2006;  relevant discussions between the Parties are currently ongoing.  WT/REG179/3 
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  14. The base rates used by the Parties for impl ementing tariff liberalization schemes under the 
Agreement are, according to Article 12.1, the MFN rates applied as of January 2003.   
15. The BCAs cover the products classified under HS Chapters 1-24, except those listed in 
Annexes IV and V of the Agreement, as well as products included in Annex III.  All concessions 
(duty free or reduced, lower-than-MFN, tariff rates) u nder the BCAs take effect as of entry into force.  
Each BCA is to be reviewed not later than  December 2006, to explore the opportunities for 
exchanging further concessions in agricultural products among the Parties.
6 
(b) Liberalization of tariff lines and trade 
16. Given that trade relations among the EFTA States are governed by the EFTA Convention, 
which is outside the scope of this presentation, and due to the architecture of the tariff concessions 
granted by the Parties, six distinct ta riff schedules (i.e. between each EFTA State7 and Chile, and 
vice versa) can de facto  be distinguished. 
17. Chart II.1 shows duty elimination in term s of tariff lines and trade applied by Chile  to the 
three EFTA States.  Upon entry into force of the Agreement, 88 per cent of Chile's total tariff lines8 
were duty-free for products of Icelandic  origin;  in terms of 2004-2005 imports from Iceland, the 
corresponding figure amounts to 99.8 per cent.9  By the end of the implementation period (2010), 
these figures increase to 88.8 and 99.8 per cent, respec tively.  Upon entry into force, 83.6 per cent of 
Chile's total tariff lines were duty-free for products of Norwegian  origin; in terms of 2004-2005 
imports from Norway, the corresponding figure amounts to 77.2 per cent.10  By 2010, these figures 
become 84.4 per cent and 79.9 per cent, respectively.  Upon entry into force, 83.2 per cent of Chile's 
total tariff lines were duty-free for products origin ating in Switzerland/Liechtenstein; in terms of 
2004-2005 imports from Switzerland, the corresponding figure amounts to 91.2 per cent.11  By 2010, 
these figures become 82.8 per cent and 95.6 per cent, respectively. 
 
  
 
 
                                                     
 
6 According to the Parties, this issue was taken up  at the Joint EFTA-Chile Committee of 31 January 
2006;  relevant discussions between the Parties are currently ongoing. 
7 Switzerland and Liechtenstein, being a customs uni on, apply the same schedule under the Agreement 
and are therefore counted as one.  Accordingly, any furthe r reference to Switzerland in this presentation should 
be taken also to refer to Liechtenstein.  
8 Chile's tariff schedule is composed of 7,903 lines at the HS 8-digit level (including one "ex" line).  
Only ad valorem  rates apply to 7,895 lines while 8 lines are also subject to Chile's price band system. 
9 Trade figures are based on the average value of Ch ile's imports from Iceland in 2004-2005, involving 
116 tariff lines (1.5 per cent  of total tariff lines).  Of these, all but  four became duty free at entry into force. 
10 Trade figures are based on the average value of Chile's imports from Norway in 2004-2005, 
involving 604 tariff lines (7.6 per cent of total tariff lines).   Of these, 545 became duty free at entry into force. 
11 Trade figures are based on the average value of Chile's imports from Switzerland in 2004-2005, 
involving 1,556 tariff lines (19.7 per cent of total tariff  lines).  Of these, 1,365 b ecame duty free at entry into 
force.  WT/REG179/3 
 Page 7 
 
 
  0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Tariff linesTradeTariff linesTradeTariff linesTradeLiechtensteinIceland Norway Switzerland/
EIF Mid-term (2008) End of implementation period (2010)Chart II.1
 Chile:  Duty elimination towards imports from EFTA States
Sourc e: Trade and tariff line data submitted by the PartiesPercentage liberalized
 
 
18. Chart II.2 shows duty elimination in terms of  tariff lines and trade, as applied by the 
EFTA States to Chile.  Upon entry into force, 94.1 per cent of Iceland 's total tariff lines were 
duty free for products of Chilean origin;12 in terms of 2002-2004 imports from Chile, the 
corresponding figure amounts to 99.9 per cent.13  Upon entry into force, 89.9 per cent of Norway 's  
total tariff lines were duty-free for products of Chilean origin;14 in terms of 2002-2004 imports from 
Chile, the corresponding figure amounts to 96.7 per cent.15  Upon entry into force, 79.8 per cent of 
Switzerland 's total tariff lines were duty-fr ee for products of Chilean origin;16 in terms of 2002-2004 
                                                      
12 Iceland's tariff schedule is composed of 8,166 lines at the HS 8-digit level.  Of these, 7,783 lines are 
subject to ad valorem duties only, 52 lines are subject to specific duties only, and 331 lines are subject to both. 
13 Trade figures are based on the average value of I celand's imports from Chile in 2002-2004, involving 
135 tariff lines (1.7 per cent  of total tariff lines).  Of these, all but  three became duty free at entry into force. 
14 Norway's tariff schedule is composed of 7,201 lines at the HS 8-digit level. Of these, 6,452 lines are 
subject to ad valorem duties only , 745 lines are subject to sp ecific duties only, and four lin es are subject to both.  
In general, duties for industrial products are defined ad valorem , while specific duties are common for 
agricultural products.  A "matrix system" (whereby the duty is calculated on the basis of the actual content of 
raw materials in the processed product) applies to certain lines subject to specific dutie s, indicated with "MX" in 
the schedule.  In some cases, the "industrial element" of the tariff is eliminated while the "agricultural element" is maintained.   
15 Trade figures are based on the average value of Norway's imports from Chile in 2002-2004, 
involving 337 tariff lines (4.7 per cent of  total tariff lines).  Of these, all but five became duty free at entry into 
force. 
16 Switzerland's tariff schedule is composed of 8,547 lines at the HS 8-digit level, all of which are 
subject to specific (or zero) duties.  WT/REG179/3 
Page 8  
 
  imports from Chile, the corresponding figure amounts to 56.8  per cent.
17  A number of Switzerland's 
tariff lines are subject to MFN tariff quotas.18  
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Tariff linesTradeTariff linesTradeTariff linesTradeLeichtensteinIceland Norway Switzerland/
EIF Mid-term (2008) End of implementation period (2010)Chart II.2
 EFTA States:  Duty elimination towards imports from Chile
Sourc e: Trade and tariff line data submitted by the PartiesPercentage liberalized
 
 
19. Due to the configuration of the tariff concessi ons, a calculation of the liberalization granted 
by one of the Parties (the EFTA States, taken as a whole) to the other (Chile) and vice versa presents 
some methodological challenges.  The aggregati on of the concessions granted by Chile to the 
EFTA States overall is relatively easy to measu re since these concessions are based on a single 
(Chile's) schedule.  Aggregating the concessions granted by the EFTA States to Chile is a less 
straightforward exercise.  Of the different aggrega tion techniques that are possible, the technique used 
here consists of a simple average based on the tota l number of tariff lines for all three EFTA countries 
and the total number of lines liberalized.  Though ar guably resulting in a less accurate measure than 
those obtained by other methods, the simple average approach has the advantage of simplicity and does not require any value judgement. 
20. Using the simple average approach, calculations  show that overall liberalization by the 
EFTA States vis-à-vis  Chilean products amounts to 87.8 per cent of tariff lines and 80.3 per cent of 
trade (based on average import values for 2002-2004).  In terms of tariff lines, Chile's overall 
liberalization vis-à-vis  the EFTA States is likewise estimated at 84.9 per cent of tariff lines 
(86.7 per cent, in terms of average import values for 2002-2004) on entry into force;  by 2010, Chile will have freed 85.7 per cent of ta riff lines (89.5 per cent of trade). 
                                                     
 
17 Trade figures are based on the average value of Switzerland's imports from Chile in 2002-2004, 
involving 478 tariff lines (5.6 per cent of total tariff lines).  Of these, a ll but 15 became duty free at entry into 
force. 
18 According to the Parties, these quotas have been notified to the WTO via list LIX.   WT/REG179/3 
 Page 9 
 
 
  (c) Chile's liberalization schedule  
21. The base rates used by Chile for implementi ng its tariff liberalization scheme provided for 
duty-free on 0.5 per cent of tariff lines, a flat tariff rate of six per cent on 99.3 per cent of tariff lines, 
and higher rates for the few remaining lines. 
22. Table II.1 shows, for Chile  vis-à-vis  each of its EFTA partners, the absolute number of 
HS 8-digit tariff lines which became duty free on entr y into force, as well as those not subject to 
concessions by Chile, organized by the HS Section to which they pertain; the groups of products 
involved vary from one partner to the other.  Like wise, the table also maps the number of lines, by 
HS Section, which will become duty free in 2 008 and 2010, those subject to reduced duties 
(lower-than-MFN rates) as of entry into force, a nd those for which duty dismantling by Chile is still 
due to be negotiated not later than December 2006; these last product subsets are strictly the same for 
all EFTA States. 
Table II.1 
Chile:  Tariff treatment applied to EFTA States, by HS Section 
(Number of HS 8-digit tariff lines) 
Iceland Norway Switzerland All EFTA States 
Duty free in: 
HS Section and description 
Duty free* 
Excluded 
Duty free* 
Excluded 
Duty free* 
Excluded 2008 2010 
Reduced 
duties* 
Dismantling to 
be decided 
Total 6949 470 6603 816 6571 848 41 22 54 366 
I Live Animals; Animal Products 426 140 379 187 403 163   1  
II Vegetable Products 276 121 63 334 65 332     
III Animal or Vegetable Fat and Oils 29 36 8 57 3 62     
IV Prepared Foodstuffs, Beverages 172 173 115 230 86 259   53  
V Mineral Products 169  169  169     22 
VI Products of Chemical or Allied 
Industries 1054  1046 8 1022 32 13 20  103 
VII Plastics and Articles thereof, 
rubber 267  267  267     40 
VIII Raw Hides and Skins, Leather 70  70  70     16 
IX Wood and Articles of wood 142  142  142      
X Pulp of Wood 235  235  235      
XI Textiles and Textile Articles 1151  1151  1151     20 
XII Footwear, Headgear, Umbrellas 115  115  115      
XIII Articles of Stone, Plaster, Cement 115  115  115  12   53 
XIV Natural and Cultured Pearls 59  59  59      
XV Base Metals & Articles thereof 647  647  647     10 
XVI Machinery & Mechanical Appl. 1204  1204  1204  16   46 
XVII Vehicles, Aircraft, Vessels 289  289  289     54 
XVIII Optical, Photographic Equipment 286  286  286   2  2 
XIX Arms and Ammunition 23  23  23      
XX Misc. Manufactured Articles 213  213  213      
XXI Works of Art 7  7  7      
 
* As of entry into force. 
 
Source:  Data provided by the Parties.  
 
23. As can be seen from Table II.1, with the exception of a small number of tariff lines in 
Sections V (Mineral Products) and Section VI (Pro ducts of the Chemical or Allied Industries), Chile 
offered the same duty-free treatment to  all EFTA States on industrial products  as from WT/REG179/3 
Page 10  
 
  December 2004, to which will be added 63 products by 2010;  for 366 pro ducts, negotiations on the 
dismantling of duties are ongoing and scheduled to be completed by December 2006. 
24. The liberalization of agricultural products
 (here defined as HS Sections I-IV) by Chile is less 
uniform with Iceland receiving the highest numbe r of liberalized lines, followed by Norway and 
Switzerland.  A total of 54 agricultural products are subject to reduced duties.  Under the Agreement, 
Chile grants Norway a tariff free quota of 200 tons  for Jarlsberg and Ridder cheese;  no other TRQs 
are applied by Chile under the Agreement.   
25. Under Article 13 of the Agreement, Chile main tains the right to apply measures related to 
imports of used vehicles as provided for in Article 21 of the Chilean Law 18.483 which was 
applicable at the day of entry into force of the Agreement. 
26. Under Article 8 of the three BCAs, Chile retains the right to maintain its price band system on 
certain products falling under eight tariff lines:  1001.9000 Wheat, other, 1101.0000 Wheat or meslin 
flour, 1701.1100 Cane sugar, 1701.1 200 Beet sugar, 1701.9100 Sugar containing added flavouring or 
colouring matter, 1701.9910 Cane sugar, refined, 1701.9920 Beet sugar, refined, 1701.9990 Sugar, 
other.  Under the price band system, specific duties are added to the ad valorem  rate to bring the 
import price up to a reference price;  if the import pr ice exceeds the reference pr ice, rebates lead to a 
reduction of the applied tariff.  Price bands are est ablished once a year, by Presidential Decree, taking 
into account average international prices of the respective goods at major commodity marketplaces. 
(d) EFTA States' liberalization schedules 
27. The base rates used by Iceland  for implementing its tariff liberalization scheme provided for 
70.1 per cent of tariff lines being duty free at entry in to force.  Duty free was granted to Chile as from 
December 2004 on a further 24.1 per cent of tariff lines, most of which hold MFN rates lower than 
10 per cent.  The vast majority of lines on which no or partial liberalization has been granted by Iceland are those subject to MFN rates of greater than 20 per cent or to specific and mixed duties.  
28. The base rates used by Norway
 for implementing its tariff liberalization scheme provided for 
83.8 per cent of tariff lines being duty free at entry in to force.  Duty free was granted to Chile as from 
December 2004 on a further 6.1 per cent of tariff lin es, most of which hold MFN rates between 10 and 
20 per cent.  Though a significant number of lines subject to specific and mixed duties were also freed upon entry into force, the majority of these lines have been excluded, as were most lines holding 
MFN rates greater than 20 per cent. 
29. The base rates used by Switzerland
 for implementing its tariff liberalization scheme provided 
for 16.9 per cent of tariff lines being duty free at en try into force.  Duty free was granted to Chile as 
from December 2004 on a further 62.8 per cent of tari ff lines.  None of Switzerland's lines is defined 
as ad valorem ; all are subject to specific duties only. 
30. Table II.2 shows, for each EFTA State, the ab solute number of HS 8-digit tariff lines which 
became subject to duty-free and to reduced duty treatment vis-à-vis  Chile as of December 2004, as 
well as those not subject to concessions, organized by the HS Section to which they pertain.  The lines 
liberalized by Iceland cover a broad range of HS Sections, while all of those excluded from 
liberalization or subject to reduced duties are agricu ltural products.  The bulk of lines liberalized by 
Norway vis-à-vis  Chile are textile products, while those subject to reduced duties and no concessions 
are agricultural products.  Switzerland's duty-free concessions to Chile concern mainly industrial 
products, particularly machinery and textiles, t hough 18 tariff lines which fall in HS Chapters 35 and 
38 were not subject to concessions.  A large majori ty of agricultural products either have been 
excluded from any liberalization by Switzerland,  or are subject to reduced rates.   
  WT/REG179/3 
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  Table II.2 
EFTA States:  Tariff treatment applied to Chile, by HS Section 
(Number of HS 8-digit tariff lines) 
Iceland Norway Switzerland 
HS Section and description 
Duty free* 
Reduced 
Excluded 
Duty free* 
Reduced Excluded 
Duty free* 
Reduced 
Excluded 
Total 1972 65 403 441 125 599 5365 352 1377 
I Live Animals; Animal Products 4 6 159  6 169 47 63 216 
II Vegetable Products 25  127 42 11 249 144 98 681 
III Animal or Vegetable Fat and Oils   4 6 4 63 7 4 146 
IV Prepared Foodstuffs, Beverages, Spirits 303 59 113 70 99 106 68 187 316 
V Mineral Products 1      64   
VI Products of the Chemical or Allied  Industries 149    5 12 600  18 
VII Plastics and Articles thereof, rubber 128      211   
VIII Raw Hides and Skins, Leather, Furskins etc. 103      60   
IX Wood and Articles of wood 58      97   
X Pulp of Wood 48      163   
XI Textiles and Textile Articles 381   323   1084   
XII Footwear, Headgear, Umbrellas 75      66   
XIII Articles of Stone, Plaster, Cement 81      155   
XIV Natural and Cultured Pearls 18      54   
XV Base Metals and Articles of Base Metals 101      905   
XVI Machinery and Mechanical Appliances 279      1056   
XVII Vehicles, Aircraft, Vessels 37      181   
XVIII Optical, Photographic Equipment 3      216   
XIX Arms and Ammunition 21      29   
XX Misc. Manufactured Articles 156      156   
XXI Works of Art 1      2   
* As of entry into force          
Source: Data provided by the Parties.  
2. Rules of origin 
31. Disciplines regarding rules of origin and admi nistrative co-operation on products covered by 
the Agreement are set out in Annex I; they  are modelled on the Pan-European regime.19  Articles 2-14 
of Annex I deal with the rules of origin th emselves, while Articles 15-38 relate to other 
customs-related issues (see paragraph 53). 
32. Basic requirements for a product to be considered  originating (Articles 2, 4 and 5 of Annex I) 
are:  
(a) the product is wholly obtained in one of the Parties; or 
                                                      
19 The BCAs contain provisions on origin rules applicable to the products covered therein 
(see paragraphs 41-42 below). WT/REG179/3 
Page 12  
 
  (b) the non-originating materials incorporated in a product have undergone “sufficient 
working or processing” in one of the Pa rties, according to specific requirements;
20  or  
(c) the product is obtained in one Party excl usively from materials qualifying in their 
own right as originating. 
33. There is no regime-wide rules of origin;  Appendix 2 to Annex I sets the specific criteria 
covering Chapters 1-97 that non originating material s should meet so that the final product acquires 
originating status.21  For many products (textiles chemicals, metals, machinery and electrical 
equipments, transportation equipmen t, measuring and musical instruments), an alternative criterion 
(except for some textiles) is also provided.22   
34. In the vast majority of cases, origin is gran ted if the working or processing carried out on 
non-originating materials results in a change in ta riff classification (CTC) on an HS basis.  These 
changes are required at the heading level (CTH, 4- digit) although in a few instances (plastics and 
HS Chapters 61, 62 and 63) they are specified at the chapter level (CTCh, 2-digit);  in some cases, the 
use of materials classified within the same HS  number as the product are allowed, subject to 
restrictions. 
35. The CTC is often supplemented with, or replaced  by, either a non-originating content (MC) 
requirement or a working or processing requirement.  The MC requirement establishes the maximum value of non-originating materials allowed in the final product, expressed as a percentage of the ex-
works price of the product;
23  this maximum value is normally 50 per cent, but different thresholds 
(ranging from 20 to 60 per cent) apply vis-à-vis  certain products of HS Chap ters 40, 64, 82, 84, 86-87, 
90-91 and 94.  Some working or processing requirements call for production processes to take place 
in the territory of the Parties;  this is most ofte n found for minerals, chemical s, metals, plastics, wood, 
textiles and hides and skins.  A few rules require  certain materials to be already originating. 
36. Article 3 of Annex I allows for "bilateral cumulatio n" between the Parties - i.e. in this context 
EFTA is looked upon as one Party and originating mate rials from one Party incorporated in a good of 
the other Party are in any case considered originating.   Further, Article 5 provides for an "absorption 
principle" – i.e. when a non-originating material acquires originating status by meeting the 
corresponding processing requirement, this material is  considered to be 100 per cent originating once 
incorporated into a final product. 
37. The "tolerance rule" in Article 5.2 applies to all products except textiles and clothing 
(HS Chapters 50-63).24  It provides that non-originating materials which would otherwise not be 
accepted may nevertheless be used, provided that (i ) their value does not exceed 10 per cent of the 
ex-works price of the product, and (ii) any of th e percentages provided for in Appendix 2 to Annex I 
are not exceeded. 
38. A list of minimal, non-qualifying operations or processes carried out in the territory of the 
Parties do not confer origin, as provided for in Article 6 of Annex I.  Paragraph 2 of this Article states 
that all operations carried out in the Parties on a given product are to be cumulated when 
determining whether the working or processing is beyond minimal operations.   Articles 7-10 
                                                      
20 Article 5 of Annex I provides for a general tolerance rule specifying that non-originating materials 
which should not be used in the manufacture of a product products may nevertheless be used provided that their 
total value does not exceed 10 pe r cent of the ex-work price of th e product (See paragraph 37 ). 
21 In the case of HS Chapters 1-24, rules of origin , specific to each BCA, may apply.  See paragraph 41. 
22 Column 3 of Appendix II to Annex I describes the specific rule. When a rule appears in column 4, 
either rule can be applied. 
23 Definitions of "ex-works price" and "value of materials" are provided in Article 1 of Annex I. 
24 Special "tolerance rules" apply to certain textile products made of a mixture of materials (see notes 5 
and 6 of Appendix 1 to Annex I).  WT/REG179/3 
 Page 13 
 
 
  define the units of qualification and how certain materials (accessories, spare parts or tools; sets; and 
neutral elements) are to be treated/valued when determining the origin of the goods.  
39. Articles 11-12 of Annex I contain conditions re lated to territoriality:  (i) no outward 
processing is authorized, only operations need ed to preserve the product’s good condition are 
permitted;  and (ii) in the absence of direct tran sport, only simple transhipment is allowed, and 
temporary warehousing under the surveillance of the cu stoms authorities.  The non-respect of either of 
these conditions will result in the loss of originating status.  
40. Article 14 provides for a no-drawback rule to be applied as of 1 December 2009;  as from 
that date, tariffs due on non-originating materials whic h benefited from preferential treatment and 
which have been incorporated in an origina ting product cannot be waived or paid back.   
41. In each BCA, rules of origin are set out in Annex 3;  an Appendix to that Annex contains the 
working or processing requirements for acquiring origin ating status.  The basic disciplines on rules of 
origin applicable to products covered by the BCAs incorporate mutatis mutandis , and almost in full, 
those contained in the Agreement and described  above, with one main difference being the 
cumulation is substituted by bilateral cumulation between each of the EFTA States and Chile.  
However, specific rules (working or processing requirements) vary from BCA to BCA both in 
coverage and in nature.  
42. In the Norway-Chile and Switzerland-Chile BCA s, the specific criteria are normally laid 
down at the HS Chapter level (except for Chapters  13, 20-22 in the case of the Norway-Chile and 
Chapters 9, 13, 20-24 in the Switzerland-Chile).  In both BCAs, a wholly obtained rule is the most 
commonly used.  For the rules descr ibed at the HS Heading level, a CTC (normally a CTCh in the  
Norway-Chile and a CTH in Switzerland-Chile) norma lly applies, subject to restrictions.  MC 
requirements are called for on several products in the Switzerland-Chile BCA, but only in two 
instances in the Norway-Chile BCA.  The Iceland-Chile BCA specifies criteria at the HS Chapter, 
Heading and Subheading levels.  CTC (mostly at the HS  Heading level, but also at the Chapter level) 
and wholly obtained rules are the most widely used  types of rule.  MC requirements (mainly when the 
rule is specified at the HS Subheading level) and criteria indicating aspects of the composition of the 
final product are called for in some cases, while a technical test is seldom requested. 
Box II.1:  Rules of Origin: Basic Features at a Glance 
• No regime-wide rules of origin. 
• Same specific rules apply to products covered in the Ag reement.  Bilateral rules for products covered in the 
BCAs.  
• Product specific criteria: 
              - Wholly obtained or entirely produced goods 
              - In general, CTC at the heading or chapter levels               - MC rules used, either alone or as supplementary rules  
              - Two alternative rules for many products 
              - Process rules used in certain cases. 
• Bilateral cumulation (bilateral cumulation for BCA products). 
• Absorption principle. 
• Tolerance rule at a maximum of 10% (except for most textiles and clothing). 
• No duty drawback as of 1 December 2009. 
• Outward-processing not authorized. 
• Simple transhipment authorized. 
• Similar disciplines apply to products covered by the BCAs. 
 
 WT/REG179/3 
Page 14  
 
  3. Export duties and charges, and quantitative restrictions 
43. Article 9 of the Agreement provides for the el imination of all customs duties on exports of 
“goods of a Party”
25 traded between the Parties, and forbids the introduction of any new such duties.   
Fees and charges imposed in connection with exporta tion may be applied on tr ade between the Parties 
provided their amount is limited to the approximate  cost of services rendered and that they do not 
represent a taxation of exports for fiscal purposes (Ar ticle 11).  Export restrictions and prohibitions 
applied on goods of a Party traded between the Par ties were abolished at entry into force of the 
Agreement, in accordance with Ar ticle 13.  This Article also pr ohibits the introduction of any new 
such measures. 
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Technical barriers to trade 
44. Article 17 reaffirms the Parties' ri ghts and obligations under the WTO Agreement on 
Technical Barriers to Trade  in respect of technical regulations, standards and conformity assessment 
procedures.  Additional disciplines of this Article provide for enhanced co-operation and consultation 
in case of problems arising on a specific measure taken by a Party.   
(b) Sanitary and phytosanitary measures 
45. Article 16 reaffirms the Parties’ rights and obligations under the WTO Agreement on Sanitary 
and Phytosanitary Measure s.  Additional obligations include a commitment to strengthen 
co-operation in this area, in particular through “e xpert consultations” and the establishment of contact 
points.  Article 16 provides that the Parties ma y conclude relevant b ilateral arrangements and 
agreements to further the implementation of these provisions.26 
2. Safeguard mechanisms 
46. Articles 19 and 20 set out the rules that apply to safeguard measures.  On global safeguards, 
Article 20 reaffirms the Parties' rights and ob ligations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards ;  no additional requirement is provided in respect of such measures.  
The disciplines applying to bilateral safeguard measur es are summarized below and in Table II.3;  the 
recourse to these measures is not bound to the expira tion of the tariff dismantling period for a good.   
47. A Party may impose a bilateral safeguard measu re (Article 19.1) on an originating good 
where the liberalization commitments  lead to an import surge that constitutes a substantial cause of 
serious injury or threat thereof to the domestic i ndustry of a like or directly competitive good in the 
importing Party.  Disciplines attached to that ac tion include the need for prior investigation in 
accordance with WTO procedures, notification, sc ope and duration of the measure, progressive 
elimination, compensation and possible retaliation (see also the text-table below). 
48. A bilateral provisional safeguard measure (A rticle 19.7) may be applied in “critical 
circumstances” where delay would cause damage difficult to repair;  it requires a preliminary determination of clear evidence that the increased imports have caused or are threatening to cause 
serious injury. 
                                                     
 
25 “Goods of a Party” are originating products, “domestic goods” in the sense of GATT 1994 or such 
goods as the Parties may agree. 
26 According to the Parties, no such agreements have been concluded thus far.  WT/REG179/3 
 Page 15 
 
 
  Synopsis of bilateral safeguards  
Trigger Rise in imports Resulting from trade liberalization under the Agreement 
Criteria Substantial cause of serious injury 
or actual threat thereof 9 
Suspension of further duty reduction 9 
Measures 
allowed  Increase in duty rate  Current MFN rate or MFN rate preceding EIF whichever 
is lower 
1 year; in “very exceptional circumstances” up to three years (additional requirement of "injury that would be 
difficult to repair" in the case of provisional measures) Timing Maximum duration including 
extension 
Maximum of 120 days for provisional measures 
Information of the institution of a 
proceeding through written notice 9 
Consultation 9 
Prior investigation  Except for provisional measures 
Re-imposition of safeguard 
measures on the same good  After 5 years since the previous measure has elapsed.  
This limitation also applies to provisional measures. 
Progressive liberalization  Fo r measures exceeding 1 year 
Compensation  9 Conditions 
or 
limitations 
Possibility of retaliation  9 
 
3. Anti-dumping and countervailing measures 
49. The Parties have agreed not to apply anti-dumpi ng measures in relation to goods of a Party, 
but rather to rely on the Agreement’s compe tition rules in order to address the economic causes 
leading to dumping (Article 18.1-2).  Parties’ rights and obligations relating to countervailing 
measures are governed by the WTO Agreement on Subsidies and Countervailing Measures .   
4. Subsidies and state-aid 
50. Disciplines on subsidies and state-aid are included in Chapter VII.  Article 81.1 states that the 
Parties' rights and obligations are governed by the WTO  Agreement on Subsidies and Countervailing 
Measures ;  a best endeavour commitment is also include d requiring a Party to provide information on 
individual cases of state-aid upon request of another Party. 
51. Article 81 of the Agreement does not apply to the products covered in the BCAs, which have 
their own disciplines on export subsidies.  These provi de that if a good that is subject to a tariff 
concession benefits from export subsidies, the im porting Party may increase the preferential import 
tariff up to the applied MFN rate.   
5. Other regulations 
(a) Customs-related procedures 
52. Article 14 provides that the valuation of goods  will be determined in accordance with the 
provisions of the WTO Agreement on Implementation of Article VII of the GATT 1994 .  Customs user 
fees and charges are allowed, provided their amount is limited to the approximate cost of services 
rendered and do not represent an indirect protection to domestic goods nor a taxation of imports for 
fiscal purposes (Article 11). 
53. Customs procedures related to rules of origin are found in Annex I of the Agreement.  They 
detail administrative questions and disciplines regardi ng proof of origin (Articles 16 and 20-28 of the 
Annex) and set out the arrangements for administrativ e co-operation to be followed by the Parties’ 
customs authorities, in particular with respect to exchange of information, mutual assistance, WT/REG179/3 
Page 16  
 
  verification of proof of origin, resolution of disput es and confidentiality (Articles 29-33).  Article 36 
of Annex I establishes a Sub-Committee on Customs and Origin Matters, to serve as a forum for 
consultations and exchange of information on a ll customs-related matters, but also to prepare 
technical amendments to the rules of origin and to resolve disputes arising in relation to verification 
procedures. 
(b) Intellectual property 
54. In Chapter IV and its related A nnex XII, the Parties reaffirm their obligations as set out in the 
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights  and other multilateral 
agreements relating to intellectual property to which both are parties;  they also 
undertake to become 
a party to several international agreements on intellectual property rights by specific deadlines as 
contained in Annex XII and to make every effort to accede to certain other international 
conventions. 27  According to Article 46.4 of the Agreement, the Parties will, upon  request of any 
Party and subject to the consensus of the Joint Co mmittee, the Parties will review the provisions on 
the protection of intellectual property rights contained in the Agreement, with a view to avoiding or remedying trade distortions caused by actual levels of protection of intellectual property or to further 
improving those levels.
28 
(c) Government procurement29 
55. Chapter V establishes a regulatory framework am ong the Parties with respect to their laws, 
regulations, procedures and practices regarding governme nt procurement.  The Chapter aims at “the 
effective and reciprocal opening” of Parties’ gove rnmental procurement markets of goods, services 
and public works, subject to the conditions specified by each Party (Annexes XIII on “Covered 
Entities” and XIV on “General Notes”).  Article 50 provides for national treatment and non-discrimination in regard to goods (and services) of each Party, for the procuring entities covered, 
subject to specified minimum thresholds and certain exceptions (Annex XIII).
30   
56. The Chapter contains general transparency prov isions regarding procur ement (Article 53);  it 
prohibits the use of offsets (Article 51) and contai ns obligations on technical specifications to avoid 
these being used to create unnecessary obstacles to tr ade (Article 60).  Furthermore, it sets out a 
number of disciplines with respect to procurement procedures.  These include: tendering procedures (Article 54);  transparency provisions (Article 53) ;  publication of notices (Article 58);  time-limits 
(Article 61 and Appendix 3 to Anne x XIV);  and procedures allowing suppliers to challenge alleged 
breaches of this Chapter (Article 66).  Article 67 enc ourages the Parties to use, to the extent possible, 
electronic means of communication and to provide each other technical co-operation and assistance. 
57. Article 68 allows a Party to modify its covera ge under the Chapter subject to notification and 
appropriate compensation, while Article 69 foresees that if additional advantages are provided for a 
third party, negotiations shall take  place upon request from another Party with a view to extending the 
Chapter’s coverage.  A biennial review of this Chapter, to be made by the Joint Committee, is 
foreseen in Article 71.  Additionally, a Working Gr oup may also be convened upon request of a Party 
to deal with issues related to the implementation of this Chapter. 
                                                     
 
27 According to the Parties, Iceland adhered to th e International Convention for the Protection of New 
Varieties of Plants 1991 in 2006. 
28 According to the Parties, no such review has been undertaken thus far. 
29 All EFTA States are parties to the WTO plurilateral Government Procurement Agreement (GPA);  
Chile is an observer.  
30 The threshold values applying to the procuring entities covered under the Agreement are equal to 
those applied by the EFTA States under the GPA.  WT/REG179/3 
 Page 17 
 
 
  (d) Competition policy 
58. Chapter VI sets out a framework for the notifi cation, co-ordination of  enforcement activities, 
consultation and exchange of information between th e Parties’ competition authorities.  With respect 
to public enterprises and enterprises to which special or  exclusive rights have been granted, Article 77 
provides that the Parties shall ensure that no measure is adopted or maintained that distorts trade in 
goods or services between the Parties to an extent cont rary to the Parties’ interests, and that such 
enterprises are subject to the rules of competition insofar as their application does not obstruct the 
performance, in law or in fact, of the particular  tasks assigned to them.  The dispute settlement 
provisions of the Agreement do not apply to th e provisions of this Chapter (Article 78). 
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
59. No sector-specific provision per se  exists in the Agreement.  However, as indicated above, 
three BCAs have been concluded jo intly with the Agreement.    
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. Exceptions and reservations 
60. Article 21 sets out the general exceptions for tr ade in goods;  it basically incorporates the 
provisions of Article XX of the GATT 1994.  Security exceptions similar to those of Article XXI of 
the GATT 1994 are included in Article 99, and apply to  all Chapters of the Agreement.  Rules on the 
application of restrictive measures in order to saf eguard a Party’s balance of payments are provided 
for in Article 98, which  in particular provides for consultations within the Joint Committee and 
clarifies that any such measure shall be taken in  accordance with the conditions established by the 
relevant WTO Agreement and consis tent with the Articles of the IM F Agreement.  Further exceptions 
are provided for taxation measures (Article 100). 
2. Accession 
61. The Agreement is open to accession to an y third State upon invitation by the Joint 
Committee, and under terms and conditions to be ag reed between the Parties and the invited State 
(Article 104). 
3. Institutional framework 
62. Chapter VIII deals with transparency.  Article  82 provides that the Parties shall publish, or 
make publicly available, laws, regulations, procedures and admi nistrative rulings of general 
application, as well as international agreements, th at may affect the operation of the Agreement.  
Article 83 provides for the designation of contact  points for Agreement-related matters, and for 
procedures relating to any request for information made by a Party. 
63. Chapter IX deals with the administration of the Agreement;  in particular, it establishes a Joint 
Committee and a Secretariat (Articles 85 and 86, respectively).  The Jo int Committee’s mandate 
includes inter alia  supervising the  implementation and furthe r elaboration of the Agreement, as well 
as endeavouring to resolve disputes regarding the inte rpretation or application of its provisions.  The 
Joint Committee may also decide to set up work ing groups and sub-committees and amend the 
Agreement's Annexes and Appendices to the Agreemen t subject to the provisions of Annex XV.  It 
shall comprise Ministers or senior officials of the Parties;  meetings will normally take place every two years and the venue shall alternate between Ch ile and an EFTA State.  The Secretariat of the 
Agreement is composed of Chile’s General Direct orate of International Economic Affairs of the 
Ministry of Foreign Affairs and of the EFTA Secretariat (Annex XVI), but no headquarter is established.   WT/REG179/3 
Page 18  
 
  64. No general review of the Agreement is foreseen; however, Article 103 provides for the 
possibility of amendments to the Agreement (the various Chapter-specific reviews provided for have 
been indicated elsewhere in this presentation).   
4. Dispute settlement 
65. Chapter X sets out the arrangements that apply to the avoidance and settlement of disputes 
between one or several EFTA States and Chile.
31  Article 88:1-2 provides that for disputes on the 
same matter arising both under the Agreement and the WTO Agreement, the complaining Party has 
discretion as to the choice of forum where the dispute is to be settled ("forum election clause");  once 
dispute settlement procedures have been initiated under one forum, that forum shall be used to the 
exclusion of the other ("exclusive forum clause").  
66. The Parties are encouraged to resolve conf licts through co-opera tion and consultations 
(Article 87:2) and they may resort to good offices,  conciliation or mediation at any time;  these shall 
be confidential and without prejudice to Parties’ ri ghts in any other proceedings (Article 89).  When 
consultations fail to resolve the matter, the comp laining Party may request in writing to the other 
Party the establishment of an arbitration panel;  upon delivery of such a request, the panel will be 
established ("compulsory jurisdiction").  The rules and procedures of the arbitration panel are outlined 
in Article 93 and in Annex XVII;  panels have st andard terms of referenc e (Article 93:2) unless 
otherwise agreed by the Parties to the dispute.  The complaining Party may decide to withdraw its 
complaint at any time before the ruling has been issued, and that without prejudice to its right to reintroduce a complaint on the same issue at a later stage (Article 95). 
                                                     
 
31 Chapter X does not apply to Chapter VI (Competition policy) not to Articles 14:2 (Customs 
valuation); 16:1 (Sanitary and phytosanitary measures); 17 :1 (Technical barriers do trade); 18:3 (Anti-Dumping 
and Countervailing measures);  20 (Global safeguards);  24:1 (MFN disciplines of the GATS); and 81:1-2 
(Subsidies).  WT/REG179/3 
 Page 19 
 
 
   Consultations 
(Art. 90) 
Request for establishment of  
an Arbitration panel  (Art. 91:1)  
Composition (Art. 92) 
Procedures  
(Art 93 & Annex XVII) 60 days (30 days for 
urgencies) after consultations 
30 days (plus 30 
days if designation 
by WTO/DG) for 
composition  
Arbitration panel examination 
(Art. 93:3-5)  Outside information and 
advice (Art.93:3)  
Termination by 
complaining Party (Art. 95)  
Arbitration panel ruling 
Binding, no appeal possible 
(Art. 94, 96:1)90 days from Panel 
establishment  Award becomes public  
(Art. 94:3)  
Notice of implementation 
by losing Party of proposed/adopted 
implementation action (Art. 96:3&5)30 days from 
receipt of ruling  
Consultations on 
mutually acceptable 
compensation -  
upon re quest (Art. 96:6 ) 
Retaliation authorized 
(Art. 96:6-96:7) Arbitration panel ruling 
Binding  (Art. 96:4 or 96:5)  45 days from 
request Disagreement on measures proposed 
or adopted No notice of 
implementation
No compliance
No agreement 
within 20 days 
Notice of 
retaliation  
(Art. 96:8)  60 days 
before 
retaliation 
Request for a ruling of the 
Arbitration panel  
(Art. 96:8 or 96:10)  
Arbitration panel ruling 
Binding  (Art. 96:8 or 96:10)  In cases of disagreement on 
measures proposed or adoptedUpon 
notification  
Within 15 days (proposed measures) 
or any time (measures adopted)  
45 days (proposed measures) or 30 days 
(measures adopted) from the request Good Offices Conciliation and  
Mediation  
 
at any time, and without prejudice to 
other proceedings (Art. 89) Within 30 days (15 
days for urgencies) from request Synopsis of dispute settlement procedures 
Request for a ruling of the 
Arbitration panel  
(Art. 96:4 or 96:5)  15 days after 
release to Parties WT/REG179/3 
Page 20  
 
  67. The text-table summarizes the procedural  aspects of the settlement of disputes.
32  The panel’s 
ruling will be binding and not subject to appeal (Ar ticle 96:1) and the Partie s are to take measures 
necessary to comply with it.  The original panel may be requested to rule  on the measures proposed 
or/and adopted by the losing Party (Article 96:4-5).  In case of absence of receipt of a notice on 
implementation or where the arbitration has ruled th at the proposed measures fail to comply with its 
original ruling, consultations shall take place on a mutually acceptable compensation.  Failure of these 
consultations open the possibility for retaliation by the complaining Party (Article 96:6).  The panel 
may also be requested to rule on the extent of the retaliatory measures proposed or/and adopted 
(Article 96:8-10) and no retaliation shall be imposed pending such ruling.  All rulings are of a binding 
nature. 
5. Relationship with other agreements concluded by the Parties 
68. In Article 4, the Parties confirm their rights and obligations under the WTO Agreement and 
other international agreements to which they are a party.  Article 5 clarifies that trade relations 
between individual EFTA States are not governed by this Agreement,33 unless otherwise provided for.   
69. Table II.4 lists the regional trade agreements (RTAs), notified to the GATT/WTO and in 
force, to which Chile and the EFTA States (coll ectively or individually) are parties to.   
Table II.4 
Chile and EFTA States:  Participatio n in RTAs (notified and in force) 
GATT/WTO Notification Partner/ 
Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
CHILE 
European Communities  01.03.2005 Services 2005 GATS Art. V 
Republic of Korea  01.04.2004 Goods & serv ices 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.2004 Goods & services  2003 GATT Art. XXIV & GATS Art. V 
European Communities  01.02.20 03 Goods 2003 GATT Art. XXIV 
El Salvador 01.06.2002 Goods & services  2004 GATT Art. XXIV & GATS Art. V 
Costa Rica 15.02.2002 Goods & services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.1999 Goods & services 2001 GATT Art. XXIV & GATS Art. V 
Canada  05.07.1997 Goods & services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.1989 Goods 1989 Enabling Clause 
LAIA 18.03.1981 Goods 1982 Enabling Clause 
PTN 11.02.1973 Goods 1982 Enabling Clause 
EFTA  STATES - COLLECTIVELY  
Lebanon 01.01.2007 Goods 2007 GATT Art. XXIV 
Korea 01.09.2006 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Tunisia 01.06.2005 Goods 2005 GATT Art. XXIV 
Singapore 01.01.2003 Goods & services 2003 GATT Art. XXIV & GATS Art. V 
Croatia 01.01.2002 Goods 2002 GATT Art. XXIV 
Jordan 01.01.2002 Goods 2002 GATT Art. XXIV 
Mexico 01.07.2001 Goods & services 2001 GATT Art. XXIV & GATS Art. V 
FYROM 01.01.2001 Goods 2001 GATT Art. XXIV 
Morocco 01.12.1999 Goods 2000 GATT Art. XXIV 
Palestinian Authority 01.07.1999 Goods 1999 GATT Art. XXIV 
Bulgaria 01.07.1993 Goods 1993 GATT Art. XXIV 
Romania 01.05.1993 Goods 1993 GATT Art. XXIV 
Israel 01.01.1993 Goods 1992 GATT Art. XXIV 
Turkey 01.04.1992 Goods 1992 GATT Art. XXIV 
INDIVIDUAL EFTA  STATES  
EFTA 01.06.2002 Services 2002 GATS Art. V 
Faroe Islands — Switzerland34 01.03.1995 Goods 1996 GATT Art. XXIV 
Table II.4 (Cont'd)
                                                      
32 All timeframes specified in the Chapter may be  extended by mutual agreement of the Parties 
involved (Article 97). 
33 These are governed by the EFTA Convention. 
34 This Agreement also applies to  Liechtenstein by virtue of the customs union between Switzerland 
and Liechtenstein.  WT/REG179/3 
 Page 21 
 
 
  GATT/WTO Notification Partner/ 
Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
EEA 01.01.1994 Services 1996 GATS Art. V 
Faroe Islands — Iceland 01.07.1993 Goods 1996 GATT Art. XXIV 
Faroe Islands — Norway 01.07.1993 Goods 1996 GATT Art. XXIV 
EC-Norway 01.07.1973 Goods 1973 GATT Art. XXIV 
EC-Iceland 01.04.1973 Goods 1972 GATT Art. XXIV 
EC-Switzerland35 01.01.1973 Goods 1972 GATT Art. XXIV 
EFTA  03.05.1960 Goods 1959 GATT Art. XXIV 
GSTP: Global System of Trade Preferences. 
LAIA: Latin American Integration Association. 
EEA: European Economic Area, EC, I celand, Liechtenstein and Norway. 
PTN: Protocol relating to Trade Ne gotiations among Deve loping Countries. 
 
Source: WTO Secretariat.  
 
  
 
                                                     
 
35 Ibid. WT/REG179/3 
Page 22  
 
  ANNEX 
 
Indicators of trade liberalization under the Agreement and the BCAS
 
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by the EFTA States and Chile to MFN imports in 2005 is shown in 
Tables A.1 (EFTA States) and A.2 (Chile) below, br oken into agricultural, industrial and total 
products.
36   
 
Table A.1 
EFTA States:  Indicators of tariff rates applied to MFN and Chilean imports, 200537 
All products  Agricultural products  Industrial products  
Averagea applied 
tariff Averagea applied 
tariff Averagea applied 
tariff Importer  Origin 
of 
goods  
Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) 
Iceland MFN 3.3 12.6 73.6 6.1 24.6 75.3 2.6 9.6 73.1 
 Chile38 0.5 39.9 98.7 2.4 40.3 94.1 0.0 0.0 100.0 
Norway MFN 1.6 24.2 93.6 7.9 70.0 88.7 0.7 11.5 94.3 
 Chile39 0.9 76.1 98.8 6.7 76.1 91.1 0.0 0.0 100.0 
a:  Unweighted average. 
b: "On dutiable" excludes duty-free tariff lines. 
Source : Preferential rates furnished by the Parties; MFN rates taken from the IDB. 
 
2. On entry into force of the Agreement, Chile 's exporters enjoyed an absolute margin of 
preference of 2.6 percentage  points on industrial products vis-à-vis  the prevailing average MFN tariff 
applied by Iceland  in 2005, and a relative margin of preference of 60.7 per cent in agricultural goods.  
In Norway 's market, Chilean exporters enjoyed an absolu te margin of preference of 0.7 percentage 
points on industrial products vis-à-vis  the prevailing average MFN tariff in 2005, and a relative 
margin of preference of 15.2 per cent in agricultural goods. 
 
  
 
    
                                                     
 
36 Applied MFN duty rates taken from the latest year  available in the Integrated Data Base (IDB) 
served as a basis to the comparison.  
37 The figures presented for the share of duty-free lin es in this table differ from those presented in 
Section II, as Iceland's and Norway's  MFN schedules do not contain the same number of tariff lines as the 
schedules used for concessions granted to Chile.  Given that Switzerland applies only specific duties, it was not 
included in this comparison. 
38 These calculations do not include 379 HS 8-digit tariff lines (in HS Chapters 1-24) to which specific 
duties apply. 
39 These calculations do not include 644 HS 8-digit tariff lines (627 lines in HS Chapters 1-24 and 
17 lines in Chapters 35 and 38) to which specific duties apply.  WT/REG179/3 
 Page 23 
 
 
  Table A.2 
Chile:  Indicators of tariff rates applie d to MFN and EFTA States' imports in 2005 
ALL PRODUCTS Agricultural products Industrial products 
Averagea applied 
tariff Averagea applied 
tariff Averagea applied 
tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall
(%) On 
dutiableb
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb 
(%) Share of duty-
free tariff lines
(%) 
MFN 2005 6.0 6.0 0.5 6.2 6..2 0.0 6.0 6.0 0..5 
Iceland 2005 0.7 6.1 87.9 2.4 6.3 46.0 0.3 5.6 94.2 
 2008 0.7 5.9 88.4 3.3 6.3 63.2 0.3 5.7 94.8 
 2010 0.7 6.0 88.7 3.2 6.3 63.2 0.3 6.0 95.1 
Norway 2005 1.0 6.1 83.6 5.4 6.2 12.0 0.3 5.6 94.2 
 2008 1.0 5.9 84.1 5.3 6.0 39.6 0.4 5.7 94.8 
 2010 1.0 6.0 84.4 5.2 6.0 39.6 0.3 6.0 95.1 
Switzerland 2005 1.0 6.0 83.2 5.4 6.2 12.7 0.3 5.6 94.2 
 2008 1.0 5.9 83.7 5.3 6.0 39.1 0.3 5.7 94.8 
 2010 1.0 6.0 84.0 5.2 6.0 39.1 0.3 6.0 95.1 
 
 a   Unweighted average. 
 b "On dutiable" excludes duty-free tariff lines. 
 
Source:  Preferential rates furnished by the Parties; MFN rates taken from the IDB. 
 
3. In Chile 's market, exporters from Iceland  enjoyed an average margin of preference of over 
5 percentage points vis-à-vis  the prevailing average MFN tariff applied, as well as a sharp increase 
(to 87.9 per cent) in the share of Chile's duty-free lin es.  This development was particularly marked in 
the case of industrial products, where over 90 per cent of Chile's tariff lines became duty free upon 
entry into force; the additional liberalization scheduled until 2010 is minimal.  Exporters from Norway  
and Switzerland  enjoyed an average margin of preference of just under 5 percentage points, as well as 
sharp increases (to over 80 per cent) in the share of  Chile's duty-free lines.  The average applied tariff 
on agricultural goods for Norway and Switzerland is hi gher than that applied to Iceland's exporters;  
likewise the percentage of duty-free tariff lines on ag ricultural products is just below 40 per cent for 
both Norway and Switzerland. 
4. Table A.3 shows the market access conditions  in the EFTA States' import markets for 
Chile's top 25 exports , which in 2002-2004 accounted on average for 70 per cent of Chile's global 
exports.40  For each individual EFTA State, the table specifies the number of HS 8-digit lines 
involved, the average MFN applied rate and the ra te accorded to Chile under the Agreement or the 
corresponding BCA.41 
5. The majority of Chile's top 25 exports we re already subject to zero MFN duties in Iceland 's 
import market; three products (wine, wood and pe troleum oils) have become free for Chilean 
products, while meat of swine rema ins subject to high MFN duties.  Out of the two products (among 
the 25 top exports) subject to MFN duties in Norway 's import market, only 'apples' was partially 
liberalized for Chile.  In Switzerland 's import market, seven of the 25 products already hold zero 
MFN duty and a further 13 products were freed for Chilean exporters; for four products (grapes, white 
and red wine, apples, and meat of swine), which account for 7.2 per cent of Chile's global exports, a 
number of restrictions remain in place. 
                                                      
40 Trade data (2002-2004) were derived from COMTRADE .  Preferential and MFN rates are those 
available in EFTA States' schedules. 
41 Notes have been added to describe those cases where several specific rates are applied to a single 
HS-6 digit export (thus making aggregation difficult). WT/REG179/3 
Page 24  
 
  6. In all cases but two,
42 the EFTA States apply harmonized orig in rules to Chile's top 25 export 
products.  Most rules are based on the CTH method or, in a few cases, require that the product be 
wholly obtained. 
7. Market access conditions in Chile's import market for Iceland's, Norway's and Switzerland's 
top 25 exports (at the HS 6-digit level) can be viewed in Table A.4 and are summarized as follows: 
(a) Iceland's top 25 exports, which accounted on average for 76.1 per cent of Iceland's 
exports to the world in 2002-2004, hold MFN tariff rates of 6 per cent in Chile.43  All 
25 products were granted duty-free access to Chile at entry into force of the Agreement. 
(b) All but two of Norway's top 25 exports, which accounted on average for 66.5 per cent 
of Norway's exports to the world in 2002-2004, hold MFN tariff rates of 6 per cent in 
Chile; Vessels for the transport of goods  (HS 890190) and Tanke rs (HS 890120) have 
average MFN duty rates of 1 and 2 per cent, respectively.
44  Twenty products were 
granted duty-free access to Chile at entry in to force, while a number of HS 8-digit 
tariff lines pertaining to the remaining products (270900 Petroleum etc., crude; 
271011 Light petroleum oils etc.; 271019 Petroleum oils etc., excl. crude; 271112 
Propane, liquefied; and 271113 Butanes, lique fied) are subject to the dismantling of 
duties to be negotiated by December 2006. 
(c) Out of Switzerland's top 25 exports, which accounted on average for 31 per cent of 
Switzerland's exports to the world in 2002-2004, one (HS 880240 Aeroplanes, etc.) had already been liberalized MFN at entry into force of the Agreement.
45  T h e  
remainder, to which an MFN duty of 6 pe r cent applied, gained immediate duty-free 
access. 
 
                                                      
42 Norway has additional requirements for apples and grapes. 
43 Among Iceland's top 25 exports, 16 HS 6-digit lines pertain to fisheries products, which together 
made up 51.1 per cent of 2002-2004 average exports to the world.  HS 760110 (Aluminium, not alloyed, 
unwrought) alone accounted for a further 16.3 per cent of exports. 
44 Among Norway's top 25 exports, six HS 6-digit lines pertain to petroleum, gas and related products, 
which together made up 53 per cent of 2002-2004 average exports to the world.   
45 All of Switzerland's top 25 exports are manufactures.  In particular, nine HS 6-digit lines are 
medicinal/pharmaceutical goods (17 per cent of 2002-2004 average export s to the world) and four lines are 
wrist-watches (5.5 per cent of global exports).  
   WT/REG179/3
 Page 25Table A.3 
EFTA States:  Market access opportunities for Chile's top 25 exports in 2002-2004 
ICELAND NORWAY SWITZERLAND Global export 
share (%) HS 6-digit and 
description of the product  
Number of 
lines MFN 
average rate Preferential 
rate 
Number of 
lines MFN 
average rate Preferential 
rate 
Number of 
lines MFN 
average rate 
(a) Preferential 
rate 
23.9 740311  Cathodes & sections of cathodes, of ref. copper 1 Free 1 Free 1 Fr. 0.14 Free 
13.3 260300  Copper ores & concs.  1 Free 1 Free 1 Free 
2.7 470321  Chemical wood pulp, soda/s ulphate, other than dissolving 
grades, semi-bleached  1 Free 1 Free 1 Fr.0.35 Free 
2.7 080610  Grapes, fresh 1 Free 4 Free 4 (b) 
2.7 220421  Wine other than sparkling wine of fresh grapes, incl. fortified 
grape must 49 1.43% Free 2 Free 7 (c) 
2.3 740200  Unrefined copper; coppe r anodes for electr. refining  1 Free 1 Free 1 Fr. 0.14 Free 
2.1 440710  Wood sawn/chipped length wise , sliced/peeled, whether or not 
planed, sanded 1 Free 6 Free 3 Fr. 0.70 Free 
1.9 9999AA Commodities not specified  ... ... ... ... ... ... ... ... ... 
1.8 290511  Methanol (methyl alcohol)  1 Free 1 Free 1 Fr. 0.50 Free 
1.7 261310  Molybdenum ores & concs., roasted  1 Free 1 Free 1 Free 
1.6 030410  Fish fillets & oth. fish meat , whether or not minced (excl. of 
03.02), fresh  15 Free 15 Free 3 Fr. 6.33 Free 
1.5 030420  Fish fillets, frozen  70 Free 17 Free 3 Fr. 6.67 Free 
1.5 230120  Flours, meals & pellets of  fish/of crustaceans, molluscs  13 Free 2 Free 2 Free 
1.2 710812  Gold (incl. gold plated with platinum), in unwr.  1 Free 1 Free 1 Free 
1.2 080810  Apples, fresh 1 Free 2 (d) 8 (e) 
1.1 740319  Unwrought prods. of ref. copper (excl. of 7403.11-13)  1 Free 1 Free 1 Fr. 0.14 Free 
1.1 440910  Wood (incl. strips & frie zes for parquet floor., not ass.)  4 2.5% Free 4 Free 1 Fr. 11 Free 
1.0 271011  Light petroleum oils & preps.  6 Free 11 Free 6 Free 
0.9 470329  Chemical wood pulp, soda /sulphate, other than dissolving 
grades, semi-bleached  1 Free 1 Free 1 Fr. 1.60 Free 
0.7 030319  Pacific salmon  1 Free 1 Free 1 Free 
0.7 280120  Iodine  1 Free 1 Free 1 Fr. 1.50 Free 
0.6 030490  Fish meat other than fillets, frozen  15 Free 3 Free 2 Fr. 7.50 Free 
0.6 020329  Meat of swine (excl. carcasses/half-carcasses, etc.) 7 (f) 7 NK 64.95/kg 4 (g) 
0.6 470311  Chemical wood pulp, soda/s ulphate, other than dissolving 
grades, unbleached  1 Free 1 Free 1 Fr. 1.60 Free 
0.6 271019  Petroleum oils & oils  from bitum. mins. (excl. crude)  9 0.56% Free 20 Free 9 Free 
 
(a)  Duties indicated are defined per 100 kg gross.  (b)  MFN tariffs are in the range Fr. 10 - Fr. 272 per 100 kg gross (partly subject to TRQs).  No concession to Chile , except a TRQ of 1000 tons 
for period Jan-June.  (c)  MFN tariffs are in the range Fr. 25 - Fr. 50 per 100 kg gross or  Fr. 2.42 - Fr. 3 per litre (subj ect to TRQs).  No concession  to Chile .  (d)  Corresponding MFN tariffs are:  
NK 4.83/kg (no concession ) and NK 0.03/kg (freed for Chile ).  (e)  MFN tariffs are in the range Fr. 2 – Fr. 153 per 100 kg gross (subject to TRQs).  No concession to Chile  on three 8-digit lines 
(with MFN tariffs in the range Fr. 21 – Fr. 153 per 100 kg gross; tariff reduction  on two lines, from Fr. 5 to Fr. 2.5 per 100 kg gross; and tariff elimination  on two lines holding an MFN tariff of Fr. 2 
per 100 kg gross.  (f)  Mixed MFN tariffs of 30% + 361 Kr. - 1195 Kr per kg.  No concession to Chile .  (g)  MFN tariffs are in the range Fr. 7 – Fr. 2304 per 100 kg gross (subject to TRQs).  No 
concession to Chile  on two 8-digit lines (with MFN tariffs in the ra nge Fr. 329 – Fr. 2304 per 100 kg gross; tariff reduction  on one line, from Fr. 50 to Fr. 40 pe r 100 kg gross; and tariff elimination  
on one line holding an MFN tariff of Fr. 7 per 100 kg gross.  
  WT/REG179/3 
Page 26 
Table A.43 
Chile:  Market access opportunities  for Iceland's, Norway's and Switzerland's top 25 exports in 2002-2004 
Iceland's top 25 export products in 2002-2004 Chile's 
import 
market Norway's top 25 export products in 
2002-2004 Chile's 
import 
market Switzerland's top 25 export products in 
2002-2004 Chile's 
import 
market Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines) 
Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines)46 
Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines) 
16.3 760110  Aluminium, not alloyed, unwrought 6.0 1 37.6 270900  Petroleum oils & oils obt. 
from bituminous mins. 6.0 2D 7.4 
 300490  Medicaments (excl. 
30.02/30.05/ 30.06 6.0 2 
14.7 030420  Fish fillets, frozen 6.0 19 11.2 271121  Natural gas, in gaseous state 6.0 1 3.1 
 300210  Antisera & oth. blood fractions 
& modified immunological prod 6.0 2 
6.3 230120  Flours, meals & pellets of fish 6.0 7 3.6 9999AA  Commodities not specified 6.0 1 2.1 
 910221  Wrist-watches other than 
electrically operated 6.0 1 
6.0 030562  Cod, salted (but not dried/smoked) 6.0 1 2.6 760120  Aluminium alloys, unwrought 6.0 1 1.9 
 910211  Wrist-watches, electrically 
operated 6.0 1 
5.0 160520  Shrimps & prawns, prepd./presvd. 6.0 12 1.5 271011  Light petroleum oils & preps. 6.0 1, 
6D 1.7 
 711319  Articles of jewellery & parts 
thereof, of oth. precious metal  6.0 1 
4.5 
 030410  Fish fillets & oth. fish meat, whether 
or not minced (excl. of 03.02) 6.0 23 1.3 271019 Petroleum oils & oils obt. from 
bituminous mins. 6.0 3, 
10D 1.2 
 300420  Medicaments cont. oth. 
antibiotics (excl. of 3004.10 6.0 2 
2.6 
 030379  Fish, n.e.s., fro zen (excl. fillets/oth. 
fish meat of 03.04 6.0 33 1.2 030212  Pacific Salmon 6.0 6 1.1 293399  Heterocyclic comps. with 
nitrogen hetero-atom(s) only 6.0 1 
2.5 
 720221  Ferro-silicon, cont. by wt. >55% of 
silicon, in granular/powder form 6.0 2 0.9 750210  Nickel, not alloyed, 
unwrought 6.0 1 1.1 
 711011  Platinum, unwrought/in powder 
form 6.0 1 
2.5 
 030530  Fish fillets, dried/salted/in brine, not 
smoked 6.0 7 0.8 271112  Propane, liquefied 6.0 1D 1.0 294190  Antibiotics & their derivs. (excl. 
of 2941.10-2941.50); salts thereof 6.0 6 
1.8 
 300490  Medicaments (excl. 30.02/30.05/ 
30.06) consisting of mixed/unmixed prods 6.0 2 0.5 030420  Fish fillets, frozen 6.0 19 0.9 
 910121Wrist-watches other than 
electrically operated 6.0 1 
1.8 150420  Fats & oils & their fractions, of fish 6.0 3 0.5 271113  Butanes, liquified 6.0 1D 0.9 
 300439  Medicaments cont. hormones/ 
oth. prods. of 29.37 not contantibiotics 6.0 2 
1.6 030331  Halibut  6.0 1 0.5 890190  Vessels for the transport of 
goods 1.0 6 0.9 
 841199  Parts of the oth. gas turbines of 
8411.81 & 8411.82 6.0 1 
1.4 030490  Fish meat other than fillets, frozen 6.0 26 0.5 890120  Tankers 2.0 3 0.9 
 293719  Polypeptide hormones, protein 
hormones & glycoprotein hormones 6.0 1 
1.2 030551  Cod, dried, whether or not salted  6.0 1 0.5 292429  Cyclic amides (incl. cyclic 
carbamates) & their derivs. 6.0 2 0.8 
 902150  Pacemakers for stimulating 
heart muscles (excl. parts & accessories) 6.0 1 
1.2 
 300390  Medicaments (excl. 30.02/30.05/ 
30.06) consisting of mixed/unmixed prods 6.0 2 0.4 480261  Paper & paperboard, of which 
>10% by wt. 6.0 6 0.8 
 847989 Machines & mech. appls. having 
individual functions 6.0 4 
1.0 
 030269  Fish, n.e.s., fresh/chilled (excl. 
fillets/oth. fish meat of 03.04 6.0 33 0.4 030374  Mackerel, frozen 6.0 3 0.8 
 293499  Nucleic acids & their salts, 
whether or not chemically defined  6.0 6 
                                                      
46 xD indicates the number of tariff lines subject to dismantling of duties.  
   WT/REG179/3
 Page 27Iceland's top 25 export products in 2002-2004 Chile's 
import 
market Norway's top 25 export products in 
2002-2004 Chile's 
import 
market Switzerland's top 25 export products in 
2002-2004 Chile's 
import 
market Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines) 
Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines)46 
Global export 
share HS 6-digit and description 
Avg. MFN rate 
Duty free in 
2004 (# lines) 
1.0 
 902139  Artificial parts of the body other than 
teeth, dental fittings & joints 6.0 1 0.4 030551  Cod, dried, whether or not 
salted 6.0 1 0.6 
 880240  Aeroplanes & oth. aircraft, of an 
unladen wt. >15000kg 0 1 
0.8 9999AA  Commodities not specified     0.3 760110  Aluminium, not alloyed, 
unwrought 6.0 1 0.6 
 330290  Mixtures of odoriferous subs. & 
mixts., incl. alcoholic solutions 6.0 5 
0.8 030380  Fish livers & roes, frozen 6.0 4 0.3 283650  Calcium carbonate 6.0 1 0.6 
 910111  Wrist-watches, electrically 
operated 6.0 1 
0.7 
 842320  Scales for continuous weighing of 
gds. on conveyors 6.0 1 0.3 030350  Herrings, frozen 6.0 1 0.6 
 292429  Cyclic amides (incl. cyclic 
carbamates) & their derivs.  6.0 2 
0.7 030250  Cod fresh/chilled (excl. fillets) 6.0 1 0.3 760612  Plates, sheets & strip, rect. 
(incl. square) , >0.2mm of aluminium 6.0 1 0.5 
 970110  Paintings, drawings & pastels, 
executed entirely by hand  6.0 1 
0.5 030262  Haddock, fresh 6.0 1 0.3 280469  Silicon, cont. by wt. >99.99% 
of silicon 6.0 1 0.5 
 710239  Diamonds, non-industrial other 
than unworked 6.0 1 
0.5 030520  Livers & roes of fish 6.0 3 0.3 851750  Apparatus for carrier-current 
line systems/digital line systems 6.0 3 0.5 902110  Orthopaedic/fracture appls. 6.0 1 
0.5 
 843850  Machinery for the preparation of 
meat/poultry 6.0 1 0.3 851750  Centrifugal pumps (excl. of 
8413.11 – 8413.40) 6.0 1 0.4 
 901890  Instruments & appls. used in 
medical/surgical/veterinary sciences,  6.0 8 
0.4 
 901819  Electro-diagnostic app. used in 
medical/surgical/dental/veterinary sciences  6.0 3 0.3 940161  Seats (excl. of 9401.10 -
9401.50), with wooden frames 6.0 4 0.4 
 847990  Parts of the mach. & mech. 
appls. of  84.79 6.0 5 
76.1    66.5    30.9    
 
__________