WORLD TRADE  
ORGANIZATION  WT/REG234/1 
18 September 2008 
 
 (08-4351) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Strategic Economic Partnership Agreement 
between Japan and Chile 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Strategic Economic Partnership 
Agreement between Japan and Chile has been drawn up by the WTO Secretariat on its own responsibility and in full consultati on with the Parties.  The report has been 
drawn up in accordance with the rules and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Ms Jo-Ann Crawford (tel: +41 22 739 5422).  WT/REG234/1 
Page iii 
 
 
  TABLE OF CONTENTS 
  
Page  
 
I. TRADE ENVIRONMENT 1  
A. M
ERCHANDISE TRADE  1 
B. T RADE IN SERVICES AND INVESTMENT  4 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 7  
A. B ACKGROUND INFORMATION  7 
III. NATIONAL TREATMENT AND MARKET ACCE SS PROVISIONS ON TRADE IN 
GOODS 9 
A. I MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  9 
1. General provisions 9  
2. Liberalization of trade and tariff lines 9  
(a) Chile's liberalization schedule 11 
(b) Japan's liberalization schedule 13 
3. Tariff-rate quotas 15  
B. R ULES OF ORIGIN  15 
C. E XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  16 
D. R EGULATORY PROVISIONS ON TRADE IN GOODS  17 
1. Standards 17  
(a) Sanitary and Phytosanitary Measures 17 
(b) Technical Barriers to Trade 17 
2. Bilateral Safeguard Measures 17  
3. BOP safeguards 18  
4. Anti-dumping and coun tervailing measures 18  
5. Subsidies 18  
6. Customs-related procedures 18  
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 19  
A. S COPE AND DEFINITIONS  19 
B. M ARKET ACCESS  19 
C. N ATIONAL TREATMENT AND MFN 19 
D. L OCAL PRESENCE AND PERFORMANCE REQUIREMENTS  20 
E. M OVEMENT OF NATURAL PERSONS  21 
F. D ENIAL OF BENEFITS  22 
G. N ON-CONFORMING MEASURES  23 
1. Chile 24  
2. Japan 26 
 
 WT/REG234/1 
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  H. L IBERALIZATION COMMITMENTS IN SELECTED SERVICES SECTORS  28 
1. Business Services 28  
2. Communications 29  
3. Financial Services 29  
(a) Commitments relating to investors and investments in financial 
institutions 30 
(b) Commitments Relating to Cross-Border Trade 31 
4. Transport Services 32  
(a) Air Transport services 32 
(b) Maritime transport services 32 
I. D OMESTIC REGULATION  32 
J. R ECOGNITION  33 
K. S AFEGUARDS  33 
V. PROVISIONS AFFECTING TRADE IN GOODS, SERVICES AND INVESTMENT 33  
A. C OMPETITION POLICY  33 
B. G OVERNMENT PROCUREMENT  33 
C. I NTELLECTUAL PROPERTY  34 
D. I NSTITUTIONAL PROVISIONS  34 
1. General Provisions and Exceptions 34  
2. Accession and termination 35  
3. Institutional framework 35  
4. Dispute settlement 35  
5. Relationship with other agreements concluded by the Parties 36  
E. OTHER 38 
1. Environment 38  
2. Labour 38  
ANNEX  I 39 
ANNEX II  43 
 
  WT/REG234/1 
Page 1 
 
 
  JAPAN-CHILE STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT  
(GOODS & SERVICES) 
 
Factual Presentation by the Secretariat  
 
 
I. TRADE ENVIRONMENT 
1. The Strategic Economic Partnership Agreement (SEPA) between Japan and Chile (hereinafter 
referred to as 'the Agreement') is Japan's sec ond cross-regional free trade agreement (FTA) with a 
Latin American country (following its 2005 Agreemen t with Mexico) and Chile's fourth FTA (at the 
time of its notification) with an Asian country (foll owing its agreements with Korea, China, and the 
Trans-Pacific SEP). 
2. Japan is Chile's 9th largest trading partner in terms of imports in 2006, accounting for 3.3% of 
its total imports, and its second largest tradi ng partner in terms of  2006 exports after the 
United States.1  Chile is Japan's 19th largest trading partner in terms of 2006 imports, accounting for 
0.01% of its total imports and its 49th largest trading partner in terms of 2006 exports.2 
3. Japan's GDP was estimated at US$4,340 billion in 2006, while that of Chile reached 
US$145 billion in the same year.  With total mercha ndise exports of US$650 billion and imports of 
US$580 billion, Japan ranked in 2006 as the fourth e xporter and the fifth importer in the world;  with 
merchandise exports of US$58 billion and imports  of US$38 billion, Chile ranked as the 40th exporter 
and 47th importer in that year. 
A. MERCHANDISE TRADE  
4. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2.  Over 
the period surveyed (1999-2006), Chile has run a consistent trade surplus with Japan. 
5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2004-2006, is shown in Ch art I.3 on the basis of Harmonized System (HS) 
section. 
6. Chile's four largest export product categories – ba se metals, minerals, an imals, and vegetables 
– made up 74.4% of its total e xports in 2004-2006 and accounted for 86% of Japan's imports from 
Chile.  Japan's four largest export product categor ies – machinery, vehicles, base metals, and 
chemicals – made up 79.0% of its  total exports in 2004-2006 and accounted for 86.1% of Chile's 
imports from Japan.   
 
    
                                                     
 
1 UNSD, Comtrade database (2006).  Countries of the European Communities are considered 
individually. 
2 UNSD, Comtrade database (2006). WT/REG234/1 
Page 2  
 
  051015202530354045505560
1998 1999 2000 2001 2002 2003 2004 2005 20060123456789101112US$billion US$billionChart I.1 - Chile: Merchandise imports from and exports to world 
and Japan, 1998-2006
Source: UNSD, Comtrade database.Imports from Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
0100200300400500600700800
1998 1999 2000 2001 2002 2003 2004 2005 2006012345678US$billion US$billionChart I.2 - Japan: Merchandise imports from and exports to world 
and Chile, 1998-2006
Source: UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
  
 
  WT/REG234/1 
 Page 3 
 
 
  Chart I.3
Japan and Chile: product composition of merchandise trade, annual average 
2004-06
Japan's imports from Chile Chile's imports from Japan
           Source:  UNSD, Comtrade database.Per cent
Total:  US$ 5.6 billion Total:  US$987 million
Total:  US$516.7 billion Total: US$ 29 billion
Total:  US$ 602.5 billion Total:  US$41.8 billionJapan's global exports Chile's global exportsJapan's global imports Chile's global imports Chemicals 2.6
Machinery
22.9Animals 4.0
Minerals 
26.0Chemicals 7.0Optical 4.7
Pulp of wood  4.1
Machinery
40.6Other 
10.4Other 
7.1
Base metals 7.6Articles of wood 6.6
Minerals 25.1
Base metals 5.1
Plastics 4.3Base metals 
35.5 Textiles 4.5
Vehicles 23.8Prepared foods 5.6Other
1.3Other 4.6
Articles of wood  4.3Other 
7.4Machinery 26.4Vehicles  55.0
Animals 6.9Minerals 28.7
Machinery 22.1Vehicles  3.7
Chemicals  6.4Prepared foods 3.5Vegetables 3.0Plastics 2.3
Textiles 5.4Pulp of wood  2.2Miscellaneous 2.2Other 
7.0
Vehicles  11.3Prepared foods 2.7
Chemicals4.5Chemicals  8.7
Vegetables 6.0Minerals 61.0
Animals 19.6Prepared foods 3.5Base metals 3.4Vegetables 2.0
Plastics 6.4Chemicals  2.9
Optical 4.4Articles of wood 2.3
Base metals 5.8Plastics 5.4Optical 2.0Vegetables 2.0
Optical 6.2
 
 WT/REG234/1 
Page 4  
 
  B. T
RADE IN SERVICES AND INVESTMENT  
7. In 2006, Chile ranked 47th in terms of worl d exports of commercial services and 48th in 
terms of imports.  Its commercial services exports  amounted to US$7.4 billion, representing 0.27% of 
world exports, while imports amounted to US$8.3 billion, representing 0.31% of world imports.  In 
the same year Japan ranked fourth in the world bo th for exports and imports of commercial services.  
Its commercial services exports amounted to US$122 .5 billion, representing 4.45% of world exports, 
while imports amounted to US$143.9 billion representing 5.44% of world imports.   
8. Chart I.4 shows the breakdown of commercial services trade for Chile in 1999-2006.  
Transportation services, travel services and othe r business services account for the largest shares of 
both imports and exports of commercial services. 
0123456789
1999
2000
20012002
2003
2004200520060123456789
1999
20002001
2002
20032004
2005
2006Chart I.4
Chile, total commercial services trade, 1999-06
Exports Imports
Transportation services
Travel services
Source: IMF, BOP CD-Rom.Communications servicesUS$ billion
Financial services
Computer and information services
Royalties and license Other business services
Personal and cultural services
Government servicesUS$ billion
 Insurance services
 
 
9. Chart I.5 shows the breakdown of commercial services trade for Japan in 1999-2006.  
Transportation services, other business services, a nd royalties and license fees represent the largest 
categories in terms of exports of commercial serv ices, while transportation services, travel services, 
and other business services are the largest in terms of imports. 
 
  
  WT/REG234/1 
 Page 5 
 
 
  0102030405060708090100110120130140
1999
200020012002
2003
2004200520060102030405060708090100110120130140
1999
20002001
200220032004
20052006Chart I.5
Japan, total commercial services trade, 1999-2006
Exports Imports
Transportation services
Travel services
          Source : IMF, BOP CD-Rom.Communications servicesUS$ billion
Construction servicesFinancial services
Computer and information services
Royalties and license Other business services
Personal and cultural services
Government servicesUS$ billion
 Insurance services
Note:     Exports of insurance services were negative in the following years: 1999 (-US$80 million),
              2001 (-US$100 million), and 2002 (-US$380 million).
 
 
10. Chile's global investment position is depicted in Chart I.6 which shows inward and outward 
FDI stocks with the world for the period 2000-2005.   Chile's outward FDI stock almost doubled over 
this period from US$11.2 billion in 2000 to US$21.4  billion in 2005;  this marks a 14% average 
annual increase compared to a 5.8% average annual increase of its inward FDI stock over the same 
period;  the latter stood at US$73.9 billion in 2005. 
11. Chile's bilateral investment position w ith Japan is shown in Table I.1. 
Table I.1 
Chile, inward investment flows and stocks from Japan, US$ thousands 
Year 1999 2000 2001 2002 2003 2004* 2005* 2006* 
Inflow 251,351 54,581 145,015 58,478 31,414 18,323 47,200 51,175 
Stock 9,225,321 3,038,944 5,019,971 3,381,140 1,286,431 4,634,543 1,983,951 3,172,650 
* Provisional figures 
Source:  Data provided by Chile 
 WT/REG234/1 
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  01020304050607080
2000 2001 2002 2003 2004 200501020304050607080
2000 2001 2002 2003 2004 2005Chart I.6
Chile foreign direct investment  stock from world, 2000-2005
Inward Outward
Source: UNCTAD, Foreign Direct Investment database US$ billion
 
 
12. Japan's global investment position is depicted in Chart I.7.  Japan's inward stock of foreign 
direct investment (FDI) increased by 47% over th e period 2002-2006, while its stock of outward FDI 
increased by 58% over the same period.3   
13. Japan's bilateral investment position with Chile is shown in Table I.2  
Table I.2 
Japan's bilateral investment flows with Chile, US$ millions 
Year 2005 2006 
Inward flow 0 0.8 
Outward flow 18.1 137.6 
 
 
 
                                                      
3 Exchange rates to convert yen to US$ are the following:  2002 – 125.39;  2003 – 115.93;  2004 – 
108.19;  2005 – 110.22; and 2006 – 116.30.  WT/REG234/1 
 Page 7 
 
 
  0102030405060708090100110120
2002 2003 2004 2005 2006050100150200250300350400450500
2002 2003 2004 2005 2006Chart I.7 
Japan inward and outward foreign direct investment stock from  world, 2002-2006
Inward Outward
Source: WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ billion
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
14. The Agreement was signed by Japan and Chile  on 27 March 2007 and entered into force on 
3 September 2007. 
15. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
24 August 2007 under Article XXIV :7(a) of the GATT 1994, and Article V:7(a) of the GATS, 
respectively (document WT/REG234/N/1 and S/C/N/398).  The text of the Agreement is available, 
together with its related Annexes, on the following official websites:   http://www.mofa.go.jp/policy/economy/fta/chile.html
 
 http://www.direcon.cl  
16. The Agreement is composed of 19 Chapte rs and has 15 related Annexes, as follows: WT/REG234/1 
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  Box II.1:  Composition of the Agreement 
Preamble 
Chapter 1:  General Provisions  
Chapter 2:  General Definitions  
Chapter 3:  Trade in Goods  
Chapter 4:  Rules of Origin  
Chapter 5:  Customs Procedures   
Chapter 6:  Sanitary and Phytosanitary Measures  
Chapter 7:  Technical Regulations, Standards and Conformity Assessment Procedures 
Chapter 8:  Investment  
Chapter 9:  Cross-Border Trade in Services 
Chapter 10:  Financial Services   
Chapter 11:  Entry and Temporary Stay of Nationals for Business Purposes  
Chapter 12:  Government Procurement   
Chapter 13:  Intellectual Property   
Chapter 14:  Competition  
Chapter 15:  Improvement of Business Environment   
Chapter 16:  Dispute Settlement   
Chapter 17:  Commission   
Chapter 18:  Exceptions 
Chapter 19:  Final Provisions  
Annexes 
   Annex 1 Schedules in relation to Article 14  
   Annex 2  Product Specific Rules  
   Annex 3  Competent Authority  
   Annex 4  Minimum Data Requirement for Certificate of Origin  
   Annex 5  Decree Law 600 
   Annex 6  Reservations for Existing Measures  
   Annex 7  Reservations for Future Measures 
   Annex 8  Transfers 
   Annex 9  Expropriation 
   Annex 10  Schedule in relation to Articles 118 and 119  
   Annex 11 Schedule in relation to paragraph 1 of Article 120  
   Annex 12 Schedule in relation to paragraph 2 of Article 120  
    Annex 13 Categories of Entry and Temporary Stay of Nationals for Business Purposes 
   Annex 14 Government Procurement 
   Annex 15 Geographical Indications for Wines and Spirits 
   Implementing Agreement pursuant  to Article 27 of the Agreement  
 
Source : Economic Partnership Agreem ent between Japan and Chile. 
 
17. On the occasion of the signing of the Agreemen t, the Ministers for Foreign Affairs of the 
Parties issued a Joint Statement which includes Attachments on anti-dumping, technical barriers to 
trade (TBT), environment and labour issues.4 
18. As regards trade in goods, no overall implemen tation period is explicitly stated in the 
Agreement.  However, the Parties' schedules of concessions for merchandise tr ade foresee a transition 
period of up to 15 years for some products.  In add ition, tariff negotiations are scheduled to take place 
in either 2009 or 2011 for a number of products. 
                                                      
4 These statements are availabl e on the following websites:   
http://www.mofa.go.jp/region/latin/chile/joint0703/index.html and 
http://www.direcon.cl/pdf/dec laracion-japon-2007.pdf  WT/REG234/1 
 Page 9 
 
 
  III. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN 
GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
19. Each Party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 13). 
20. The Parties agree to reduce or eliminate cust oms duties on originating goods as scheduled in 
Annex 1 of the Agreement and not to raise cu stoms duties on originating goods from the level 
provided for in their schedules (Article 14).  Annex 1 contains 11 categories relating to tariff liberalization between the Parties:  i) the immediate elimination of customs duties from the date of 
entry into force of the Agreement (category A);  ii) the progressive elimination of customs duties in 
six, eight, 11, 13, or 16 equal stages (categori es B5, B7, B10, B12 and B15);  iii) progressive 
elimination of duties by 2019 (category B12*);  iv) progressive reductions of customs duties until 
2012, with duty remaining (category P);  v) subject to tariff rate quota (category Q);  vi) renegotiation 
in either 2009 or 2011 (category R);  and vii) excl usion from liberalization (category X).  In the case 
of Japan, tariff reductions take place on the date of entry into force of the Agreement and on 1 April 
of following years.  For Chile, tariff reductions ta ke place on the date of entry into force of the 
Agreement and on 1 January in subsequent years.   
21. Upon request of either Party, the Parties ag ree to negotiate improved market access of goods 
designated for negotiation in the respective schedule in Annex 1, in accordance with the terms and 
conditions set out in the schedule (Article 14.3).  
22. The Parties agree not to introduce or maintain any prohibitions or restrictions on imports from 
each other (other than customs duti es), which are inconsistent with th eir obligations under Article XI 
of the GATT 1994 and relevant provisions under the WTO Agreement (Article 18).   
2. Liberalization of trade and tariff lines 
23. The elimination of tariffs applicable between  the Parties is detailed in the corresponding 
Parties' schedules.  Tariff elimination started on 3 September 2007, from the base rates applied in 
April 2005. 
24. The overall tariff elimination under the Agreem ent is depicted in Tables III.1A and III.1B 
below.
5  In the case of Chile, 0.4% of total tariff lines were already duty-free on an MFN basis in 
2007.6  A further 77.8% of tariff lines became duty-free for imports from Japan in 2007;  in terms of 
imports from Japan for the period 2004-2006, these fi gures amount to 0.5 and 94.2%, respectively.  
By the end of the transition period in 2022, a further 16% of tariff lines are to be liberalized, 
accounting for 5.3% of imports from Japan for the pe riod 2004-2006.  Thus, a total of 94.2% of tariff 
lines are liberalized under the Agreement, correspondi ng to 99.9% of imports by value from Japan for 
the period 2004-2006. 
 
 
                                                      
5 Tariff lines containing in-quota duties are ex cluded from all the tari ff-related calculations. 
6 Chile's tariff is composed of 7,902 tariff lines at the HS 8-digit level, all of which contain ad valorem  
rates.   WT/REG234/1 
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  Table III.1A Chile 
Tariff elimination commitments under the Agreement and corresponding average trade 
Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from Japan (2004-2006) 
in million US$ % of total Chile's 
imports from Japan 
2004-2006 
MFN duty free 
(2007) 35 0.4 4.6 0.5 
2007 6,146 77.8 926.1 94.2 
2012 733 9.3 46.8 4.8 
2014 144 1.8 0.3 0.0 
2017 287 3.6 2.8 0.3 
2019 52 0.7 1.6 0.2 
2022 50 0.6 0.1 0.0 
Remain dutiable 455 5.8 1.3 0.1 
Total 7,902  100.0 983.6 100.0 
 
Source: WTO Secretariat based on data provided by Chile. 
 
25. In the case of Japan, 41.7% of total tariff lin es were already duty-fr ee on an MFN basis in 
2007.7  A further 40.1% of tariff lines became duty-free for imports from Chile in 2007;  in terms of 
imports from Chile for the period 2004-2006, these fi gures amount to 69.3 and 3.2%, respectively.  
By the end of the transition period in 2022, a further 7.1% of tariff lines are to be liberalized, accounting for a further 19.5% of imports from Chile for the period 2004-2006.  Thus, a total of 89% of tariff lines are liberalized under the Agreement, corresponding to 92% of imports by value from 
Chile for the period 2004-2006. 
Table III.1B Japan 
Tariff elimination commitments under the Agreement and corresponding average trade 
Duty phase-out 
period Number of lines % of total lines in 
Japan's tariff schedule Value of Japan's imports 
from Chile (2004-2006) 
in million US$ % of Japan's total 
imports from Chile 
2004-2006 
MFN duty free (2007) 3,717 41.7 2,340.6 69.3 
2007 3,571 40.1 108.4 3.2 
2012 90 1.0 10.9 0.3 
2014 209 2.3 38.3 1.1 
2017 287 3.2 549.4 16.3 
2019 4 0.0 19.3 0.6 
2022 56 0.6 41.4 1.2 
Remain dutiable 981 11.0 270.9 8.0 
Total 8,915 100.0 3,379.3 100.0 
 
Note: Tariff lines subject to in-quota rates are excluded from the calculations. 
 
Source:  WTO estimates based on data provided by Japan. 
                                                      
7 Japan's tariff is composed of 8,915 tariff lines at the HS 9-digit level, of which 8,305 are subject to 
ad valorem  rates.  The remaining 594 lines are subject to non ad valorem  rates:  204 specific, 56 compound, 
334 mixed, and 16 others.  No ad valorem  equivalent rates were provided by Japan.  Only the ad valorem  rate is 
taken into account in the calculation of averages.  WT/REG234/1 
 Page 11 
 
 
  (a) Chile's liberalization schedule 
26. The base rates used by Chile for implementi ng its tariff liberalization scheme provided for 
less than 1% of tariff lines being duty free before th e entry into force of the Agreement.  As can be 
seen from Chart III.1, upon entry into force over 6,0 00 lines subject to MFN rates of 6% were freed of 
duties.  Further elimination of duties take place in 2012, 2014, 2017, 2019 and 2022.   
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,0002007200820092010201120122013201420152016201720182019202020212022Chart III.1
Chile's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Chile.Number of duty-free lines (cumulative)
Duty-free <10% <20% MFN is:
 
 
27. Table III.2 shows Chile's trade liberalization commitments under the Agreement on the basis 
of products' treatment at the HS 8-digit level orga nized by HS section product categories.  Of the 
7,902 tariff lines in Chile's tariff schedule, 35 were already duty-free on an MFN basis in 2007;  an additional 6,146 lines covering products in all HS sec tions were liberalized upon entry into force of 
the Agreement.  In 2012, an additional 733 lines ar e subject to liberalization, followed by further 
liberalizations in subsequent years until 2022.  Of  the 455 lines which will remain subject to duties, 
the bulk are agricultural products;  the rest are minera ls, chemicals, wood, textiles, footwear, and base 
metals. 
Table III.2 
Chile:  Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  HS section and 
description  MFN 
avg.%  Total 
No of 
lines  MFN 
2007  2007  2012  2014  2017  2019  2022  Remain dutiable  
I Live animals and animal 
products 6.2 567  289 30 20 30  2 196 
II Vegetable products 6.0 397  261 14 35 25 1 11 50 
III Animal or vegetable 
fats and oils 6.0 65  52      13 
IV Prepared food etc. 6.0 398  130  12 38 18 23 177 
V Minerals 6.0 191  183 2   2 3 1 
Table III.2 (Cont'd)  WT/REG234/1 
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  Number of duty-free lines  HS section and 
description  MFN 
avg.%  Total 
No of 
lines  MFN 
2007  2007  2012  2014  2017  2019  2022  Remain dutiable  
VI Chemical and products 6.0 1,190  985 141 1 60 2  1 
VII Plastics and rubber 6.0 307  270 24   3 10  
VIII Hides and skins 6.0 86  36 17 30 3    
IX Wood and articles 6.0 142  119 13  5  1 4 
X Pulp, paper etc. 5.9 235 4 224 7      
XI Textile and textile 
articles 6.0 1,171  1,170      1 
XII Footwear, headgear 6.0 115  38  45 27   5 
XIII Articles of stone 6.0 180  25 68  87    
XIV Precious stones, etc. 6.0 59  55   4    
XV Base metals and  
products 6.0 657  343 273  8 26  7 
XVI Machinery 6.0 1,266 2 1,264       
XVII Transport equipment 5.5 343 29 242 72      
XVIII Precision equipment 6.0 290  277 13      
XIX Arms and ammunition 6.0 23  23       
XX Misc. manufactured 
articles 6.0 213  153 59 1     
XXI Works of art, etc. 6.0 7         
Total 6.0 7,902 35 6,146 733 144 287 52 50 455 
 
Note:  In-quota tariff lines are excluded. 
 
Source:  WTO estimates based on data provided by Chile. 
 
28. The composition of the 455 lines which remain su bject to duties in Chile is as shown in 
Chart III.2 
Chart III.2 
Composition of Chile's Remaining Dutiable Lines 
 
Chile's
Remaining Dutiable Lines
Negotiation in 
year 5
(29.5%)Reduced duties
(0.4%)Excluded 
(88.5%)
Negotiation 
in year 3
(1.1%)
TRQs
(6.6%)
 
 Source:  WTO estimates based on data provided by Chile.  WT/REG234/1 
 Page 13 
 
 
  (b) Japan's liberalization schedule 
29. The base rates used by Japan for implemen ting its tariff liberalization scheme already 
provided for 41.7% of tariff lines being duty free before the entry into force of the Agreement.  As can 
be seen from Chart III.3, most of the additional 40. 1% of tariff lines freed upon entry into force held 
base rates of 10% or less.  Further eliminations of duties take place in 2012, 2014, 2017, 2019, and 
2022 with the bulk of lines subject to MFN duties above 10% liberalized in 2017.   
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000200720122014201720192022Chart III.3
Japan's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Japan.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% MFN is: >40% Non ad valorem
 
 
30. Table III.3 shows Japan's trade liberalizati on commitments under the Agreement at the 
HS 9-digit level organized by HS section product cate gories.  Of the 8,915 lines forming Japan's tariff 
schedule, 3,717 lines were already MFN duty-free in 2007;  an additional 3,717 tariff lines were 
liberalized upon entry into force of the Agreemen t (comprising both agricultural and industrial 
products).  In 2012, an additional 90 lines are subject to liberalization, followed by further 
liberalizations in subsequent years until 2022.  Of  the 981 lines which will remain subject to duties, 
the bulk are agricultural products;  the rest are mine rals, chemicals, hides and skins, wood, textiles, 
and footwear. 
Table III.3 
Japan: Tariff elimination under the Agreement, by HS section 
Number  of duty-free lines  Remain 
dutiable  HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
2007  2007  2012  2014  2017  2019  2022   
I Live animals and animal 
products 8.4 508 109 35 44 20 11  5 284 
II Vegetable products 6.1 526 165 137 21 43 43 1 10 106 
III Animal or vegetable fats and 
oils 3.8 85 20 22 2 3    38 
IV Prepared food etc. 16.4 761 77 50 8 47 103 3 38 435 
Table III.3 (Cont'd)  WT/REG234/1 
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  Number  of duty-free lines  Remain 
dutiable  HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
2007  2007  2012  2014  2017  2019  2022   
V Minerals 0.5 219 166 34   18   1 
VI Chemical and products 2.3 1,034 402 621 1 2    8 
VII Plastics and rubber 2.4 296 103 178 1  14    
VIII Hides and skins 10.4 196 66 3  67 32   28 
IX Wood and articles 3.4 233 83 61 13  27  3 46 
X Pulp, paper etc. 0.0 172 172        
XI Textile and textile article s 6.5 2,063 91 1,966      6 
XII Footwear, headgear 16.2 109 6 28  21 25   29 
XIII Articles of stone 1.1 160 100 60       
XIV Precious stones, etc. 1.3 80 58 14   8    
XV Base metals and  products 0.8 842 603 233   6    
XVI Machinery 0.1 959 945 14       
XVII Transport equipment 0.1 147 146 1       
XVIII Precision equipment 0.2 294 285 6  3     
XIX Arms and ammunition 6.9 24  24       
XX Misc. manufactured articles 1.7 200 113 84  3     
XXI Works of art, etc. 0.0 7 7        
Total 4.7 8,915 3,717 3,571 90 209 287 4 56 981 
 
Note: For  tariff lines subject to TRQs only the out-of-qu ota duty is included in the tariff-related calculations. 
 
Source:   WTO estimates based on data provided by Japan. 
 
31. The composition of the 981 lines which remain subject to duties in Japan is as shown in 
Chart III.4.8 
Chart III.4 
Composition of Japan's Remaining Dutiable Lines 
 
Japan's
Remaining Dutiable Lines
Negotiation in 
year 5
(25.0%)
Reduced duties
(0.5%)Excluded 
(71.2%)Negotiation in 
year 3
(0.1%)
TRQs
(3.2%)
Combination
of Categories R/B7 (0.1%)
 
 
 Source:  WTO estimates based on data provided by Japan. 
                                                      
8 16 lines which are exclud ed from the Agreement are subject to zero MFN duties.  WT/REG234/1 
 Page 15 
 
 
  3. Tariff-rate quotas 
32. Both Parties apply different preferential ta riff-rate quotas schemes applicable to certain 
products – five schemes each for Chile and Japan.  These categories are explained in Parts 2 and 3 in 
Annex 1.   
33. Chile maintains tariff-rate quotas (TRQs) on 30 tari ff lines all of which apply to agricultural 
products (HS Chapters 2, 16 and 20).  Details of  the quantities and rates applying to these lines are 
given in Annex II of this report, Table AII.1.  Jap an maintains tariff-rate quot as on 33 tariff lines all of 
which apply to agricultural products (HS Chapters 2, 16 and 20).  Details of the quantities and rates 
applying to these lines are given in Annex II of this report, Table AII.2.  For both Parties, negotiations 
on the aggregate quota quantity and the in-quota rate of duty are scheduled for 2011;  in the absence 
of an agreement, the aggregate quota quantity and in- quota duty rates applicable in 2011 will continue 
to be applied. 
B. RULES OF ORIGIN  
34. Disciplines regarding rules of origin and custom s procedures are set out in Chapters 4 and 5, 
respectively.  Articles 29-42 deal with the rules of origin themselves, while Articles 43-51 cover 
certificate of origin and related procedures.  Articles 52-54 contain miscellaneous provisions 
including the definitions relating to rules of origin. 
35. The general requirements for a good to be c onsidered an originating good of a Party 
(Article 29.1) are:  
(a) the good is wholly obtained or produced entirely in the Party9;   
(b) the good is produced entirely in the Party ex clusively from originating materials of 
the Party;   
(c) the good is produced entirely in the Party using non-originating materials which 
satisfy the product specific rules of Annex 2,  and all other applicable requirements of 
Chapter 4;  or 
(d) the good is produced entirely in the Party, but one or more of the non-originating 
materials used in the production of the good do not undergo an applicable change in 
tariff classification (CTC), provided that the qualifying value content of the good, 
determined in accordance with Article 30 is not less than 45% using the build-down 
method, or 30% using the build-up method.10 
                                                      
9 This concept applies to mineral goods extracted in the Party; vegetable goods harvested in the Party;  
live animals born and raised in the Party;  goods obtained from hunting, trapping or fishing in the Party;  goods 
obtained from live animals in the Party;  fish, shellfish and other marine species taken from the sea beyond the 
territorial seas of the Party by vessels (subject to regi stration, ownership and operation conditions as specified in 
Article 29.2(f));  goods produced on board factory ships (subject to registration, ownership and operation 
conditions as specified in Article 29.2(g));  goods taken by the Party or a natural person or enterprise of the 
Party from the seabed or subsoil beneath the seabed outsi de the territorial sea of th e Party, provided that the 
Party has rights to exploit such seabed or subsoil;  waste and scrap derived from production in the Party or used 
goods collected in the Party, provided that such goods are fit only for th e recovery of raw materials;  and goods 
produced in the Party exclusively from the goods mentioned above, or from their derivatives, at any stage of production.  
10 Except for goods in HS Chapters 61-63. WT/REG234/1 
Page 16  
 
  36. Section 2 of Annex 2 sets out specific criteria for non-originating materials to meet in order 
for the good to acquire originating status.  In the case of agricultural products, the specific rules in 
Annex 2 call for a change of Chapter fo r some goods (HS Chapters 1-16 and 22)
11;  for a change of 
HS chapter or heading (4-digit) or sub-heading (6-d igit) for sugars, cocoa and preparations of cereals 
(Chapters 17-19), preparations of vegetables, fru it and nuts (Chapter 20), miscellaneous edible 
preparations (Chapter 21), beverages, spirits  and vinegar (Chapter 22), residues and wastes 
(Chapter 23) and tobacco (Chapter 24).12  
37. For industrial products, in the majority of cases,  origin is granted if the non-originating 
materials have undergone a CTC on the basis of HS head ings or sub-headings - i.e. at the four or six-
digit level.  In some cases, the CTC is s upplemented with, or replaced by, a qualifying value 
requirement which establishes the minimum value of non-originating materials allowed in the good 
for it to be considered originating.  The minimum value is set at 45% when the build-down method is 
used, or not less than 30% if the build-up method is used.13 
38. Article 32 establishes a de minimis  principle whereby a product is considered to be 
originating if all non-originating materials used in  its production that do not undergo an applicable 
CTC do not exceed specific percentages of value, wei ght or volume as set out in Annex 2.  For goods 
in Chapter 19, subheading 2001.10 through 2008.91, 2008.99 through 2009.90 and Chapter 21, the applicable percentage is 7% of the value of the good;  for goods in subheading 2008.92, Chapter 28 
through 49 and 64 through 97, 10% of the value of the good;  and in the case of goods in Chapter 50 through 63, 7% of the weight of the good.  Cumu lation between producers in one or both Parties is 
permitted (Article 33).  
39. Articles 35-39 define how certain materials (sets, kits or composite goods;  indirect materials; 
accessories, spare parts and tools;  packaging mate rials and containers for retail sale;  packing 
materials and containers for shipment) are to be  treated/valued when determining their origin. 
40. Article 40 contains a list of non-qualifying op erations which do not confer origin.   
Box III.1:  Rules of Origin:  Basic Features at a Glance 
• Product specific criteria: 
-  Wholly obtained or entirely produced goods 
-  For most agricultural goods, a change of HS Chapter applies. 
-  For industrial goods, a change of heading or sub-heading is the most common rule.  
• Bilateral cumulation. 
• Tolerance rule in terms of value, weight or volume of the good (7-10% of value, or 7% of weight, 
depending on the good). 
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
41. Neither Party shall introduce or maintain any du ties, or fees or other charges of any kind on 
the export of a good, unless such duties, fees or ch arges are not in excess of those imposed on goods 
destined for domestic consumption (Article 16).  Neither Party shall introduce or maintain any 
prohibition or restriction other than customs duties on the export, or sale for export, of any good destined to the other Party, which is inconsiste nt with its obligations under Article XI of the 
GATT 1994 and its relevant provisions under the WTO Agreement (Article 18). 
                                                     
 
11 For HS Chapters 11 and 16, some exceptions apply. 
12 For some products in HS Chapters 20-23, a qualifying value content rules applies. 
13 The build-up and build -down methods are outlin ed in Article 30.  WT/REG234/1 
 Page 17 
 
 
  D. REGULATORY PROVISIONS ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and Phytosanitary Measures 
42. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Sanitary and Phytosanitary Measures (SPS) (Article 63). 
43. Article 64 provides for the Parties to designate  an enquiry point to answer all reasonable 
enquiries from the other Party on SPS measures and to provide relevant information, if appropriate. 
44. Article 65 provides for the establishment of a Working Group on SPS measures with the 
following functions:  exchange of information on SPS incidents in the Parties and non-Parties, as well as modification or introduction of SPS-related re gulations and standards by the Parties;  conduct 
science-based consultations to identify and address specific issues that may arise from the application 
of SPS measures;  consult on cooperativ e efforts between the Parties in in ternational fora in relation to 
SPS measures;  and discuss technical cooperation be tween the Parties on SPS measures.  The dispute 
settlement provisions of the Agreement do no t apply to SPS measures (Article 66).   
(b) Technical Barriers to Trade 
45. In Article 68, the Parties reaffirm thei r existing rights and obligations under the 
WTO Agreement on Technical Barriers to Trade (TBT).  The Parties agree to cooperate in the field of 
technical regulations.  Subject to the availability of appropriated funds and the applicable laws and 
regulations of each Party, the Agreement provid es a framework to address cooperation in technical 
regulations, standards and conformity assessment procedures, such as joint studies, seminars exchanging information,  and contributing, where appropriate, jointly to the activities related to 
conformity assessment procedures in international and regional fora (Article 69).  The dispute 
settlement provisions of the Agreement do not apply to TBT measures (Article 71).
14   
2. Bilateral Safeguard Measures 
46. The Parties may take bilateral safeguard me asures to the minimum extent necessary to 
prevent or remedy the serious injury to a domestic industry and to facilitate adjustment in the case of 
imports of originating goods in such increased qua ntities, in absolute terms, that constitute a 
substantial cause of serious injury or threat thereof (Article 20.1). 
47. Bilateral safeguards may take the form of (a)  suspension of the further reduction of customs 
duty on the originating good;  or (b) increased cust oms duty to the lesser of the applied MFN duty in 
effect when the safeguard action is taken, and th e MFN rate applied on the day immediately preceding 
the date of entry into force of the Agreement (Article 20.2).   
48. Bilateral safeguards cannot be imposed for more than three years (compared to four years in 
the WTO Agreement on Safeguards), but can be extended up to a maximum period of four years in very exceptional circumstances
15 (Article 22).  The measure must not be applied to goods which have 
                                                      
14 In the Joint Statement issued on the occasion of  the signing of the Agreement, the Ministers for 
Foreign Affairs of the Parties confir med that each Government would make their best efforts to ensure that, 
when international standards, guides and recommendations are elaborated, their standardizing bodies would 
observe the principles outlined in document G/TBT/1/Rev.8 dated 23 May 2002, issued by the WTO TBT 
Committee. 
15 Under the WTO Agreement on Safeguards, the maximum period of application of (global) safeguard 
measures is eight years (Article 7.3). WT/REG234/1 
Page 18  
 
  already been subject to a bilateral safeguard measure , for a period of time equal to the duration of the 
previous measure or one year (compared to two years in the WTO Agreement on Safeguards), 
whichever is longer (Article 22). 
49. Provisional measures may be taken in critical circumstances where delay would cause 
damage which would be difficult to repair.  The duration of provisional measures cannot exceed 
200 days within the overall period of the safeguard (Article 25). 
50. An investigation must in all cases be complete d within one year from the date of initiation 
(Article 21.2).
16  Only if the investigation demonstrat es the existence of a causal link between 
increased imports of the originating good and serious in jury or threat thereof can a bilateral safeguard 
measure be applied (Article 21.4).  The relevant factors for the investigation include the rate and 
amount of the increase in imports in absolute te rms, the share of the domestic market taken by 
increased imports, and changes in the levels of sal es, production, productivity, capacity utilization, 
profits and losses, and employment (Article 21.3).17 
51. If necessary, the Parties shall review the bilateral safeguard provisions ten years after the 
entry into force of the Agreement, i.e. September 2017 (Article 26.4).  
3. BOP safeguards 
52. Article 19 provides for the Parties to take measur es to safeguard the balance of payments in 
accordance with the condition established unde r Article XII of the GATT 1994, and the 
Understanding on the Balance-of -Payment s Provisions of GATT 1994 (Article 19). 
4. Anti-dumping and countervailing measures 
53. There are no provisions on anti-dumping and countervailing duties in the Agreement.18   
5. Subsidies 
54. In Article 17 the Parties agree not to introduce or maintain any export subsidies on any 
agricultural good which is listed in Annex 1 to the WTO Agreement on Agriculture.   
6. Customs-related procedures 
55. Customs procedures related to rules of origin  are detailed in Articles 43-51 and Annex 4.  
Articles 45-49 lay out disciplines for documentation requi rements, verification of origin and denial of 
preferential treatment in case of non-compliance with the relevant requirements.  Annex 4 contains 
the minimum data requirement for the certificate of orig in.  The certificate of origin is to be issued by 
the government authority designated by the exporting Pa rty, which may, in turn, designate public or 
private entities or bodies to be responsible for the issuan ce of the certificate of origin.  Such entities or 
bodies are to be notified to the othe r Party in writing (Article 44).   
                                                      
16 There is no time period for the investig ation in the WTO Agreement on Safeguards. 
17 Article 4.2.(a) of the WTO Agreement on Safeguards includes the rate and amount of the increase in 
imports of the product concerned in both absolute and relative terms.   
18 In the Joint Statement issued by the Parties on the occasion of the signing of the Agreement, the 
Ministers for Foreign Affairs of the Parties affirmed the need to establish robust an d clear rules to ensure not 
only fairness and consistency in the application of anti-dumping measures, but also transparency in anti-dumping procedures.  They are determined that anti-dumping measures should be used only to the extent really 
necessary to remedy the injurious effects of dumping.  WT/REG234/1 
 Page 19 
 
 
  56. Chapter 5 contains provisions on transparency, customs clearance, and cooperation as regards 
customs procedures.  Article 60 provides fo r the establishment of a Committee on Customs 
Procedures which is responsible for the review of the implementation and operation of customs 
procedures. 
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
57. Trade in services is mainly governed by th e Chapter on Cross-Bord er Trade in Services 
(Chapter 9), which covers three of the four mod es of supply found in the GATS.  The definition of 
"cross-border trade in services" is the supply of a se rvice:  from the Area of a Party into the Area of 
the other;  in the Area of one Party by a natural pe rson or an enterprise of that Party to a natural 
person or enterprise of the other Party;  or by a natu ral person of a Party in the Area of the other Party 
(Article 116.1(c)). 
58. The supply of a service by an investor of one  of the Parties (commercial presence) is not 
regarded as "cross-border trade in services", but c overed by Chapter 8 on investment.  Further, 
Chapter 9 does not apply to:  cabotage in maritime transport services;  financial services, which are 
covered separately in Chapter 10;  measures affecting air traffic rights, other than aircraft repair and 
maintenance services, selling and marketing of air transport services, and computer reservation system services;  government procurement;  subsid ies;  measures affecting natural persons seeking 
access to the labour market;  or measures regard ing nationality and citizenship or residence or 
employment on a permanent basis;  and services supplied in the exercise of government authority (Article 106.2). 
59. Chapter 8 applies to investments and investors of the other Party in all sectors – including 
services – except for financial services, which is govern ed by Chapter 10.  Chapter 8 also provides for 
an investor-state dispute settlement mechanism (Art icles 88-104).  The tribunal may award, separately 
or in combination monetary damages and restitu tion of property if it finds in favour of the 
complaining investor (Article 103). 
60. Chapter 10 on financial services applies to m easures adopted or maintained by a Party 
relating to financial institutions and to investment s and investors of the other Party in financial 
institutions;  and cross-border trade in financial servic es.  It also provides for the application of certain 
provisions of Chapters 8 and 9, such as provi sions relating to transfers, expropriation and 
compensation, subrogation, special formalities and information requirements, temporary safeguard 
measures, denial of benefits, and restricti ons to safeguard the balance of payments. 
B. M
ARKET ACCESS  
61. The Chapters on cross-border trade in services and investment do not contain market access 
provisions along the lines of Article XVI of th e GATS, though Chapter 10 on financial services 
contains certain market access provisions similar to those in Article XVI of the GATS.   
C. NATIONAL TREATMENT AND MFN 
62. Articles 107 and 108 provide, respectively, fo r a Party to accord to services and service 
suppliers of the other Party treatment no less favour able than it accords, in like circumstances, to its 
own services and service suppliers (national treatme nt) and to services and service suppliers of any 
non-Party (MFN).   WT/REG234/1 
Page 20  
 
  63. As regards the Chapter on Investment, Articles 73 and 74 provide for the Parties to accord 
national and MFN treatment respectively, in like circ umstances to investors of the other Party and to 
their investments, with respect to  investment activities in its Area.
19 
D. LOCAL PRESENCE AND PERF ORMANCE REQUIREMENTS  
64. The Parties do not require each other's servi ce suppliers to establish or maintain a 
representative office or any form of enterprise, or to be resident, in their Area as a condition for the 
cross-border supply of a service (Article 109). 
65. Article 77 prohibits performance requirements.  Accordingly, neither Party may impose or 
enforce any of the following requirements, or any commitment or undertaking, in connection with 
investment activities of an investor of a Party or of a non-Party in its Area: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content; 
(c) to purchase, use or accord a preference to goods produced or services supplied in its 
Area, or to purchase goods or services from persons in its Area; 
(d) to relate in any way the volume or value of imports to that of exports or to the amount 
of foreign exchange inflows associated with the investment; 
(e) to restrict sales of goods or services produced  or provided in its Area by relating them 
to the volume or value of its exports or foreign exchange earnings; 
(f) to transfer technology, a production process  or other proprietary knowledge to a 
person in its Area;  or  
(g) to supply goods or services exclusively fro m its Area to a specific region or world 
market. 
66. Neither Party may condition the (continued) r eceipt of an advantage in connection with 
investment activities on compliance with a given le vel or percentage of domestic content;  to 
purchase, use or accord a preference to goods produced or purchased in its Area;  to relate the volume 
or value of imports to those of exports or to the amount of foreign exchange inflows associated with 
investments;  or to restrict sales of goods or servi ces by relating such sales to the volume or value of 
its exports or foreign exchange ear nings (Article 77.2).  Nonetheless, the Parties reserve the right to 
condition the (continued) receipt of advantages in connection with investment activities on 
compliance with requirements to locate production, supply a service, train or employ workers, construct or expand particular facilities, or ca rry out research and development (Article 77.3). 
67. Article 78 prohibits restrictions concerning the nationality of senior management.  However, a 
Party may require that a majority of the board of directors, of an enterprise of that Party owned by an 
investor of the other Party, be of a particular nati onality, or resident in that Party, provided that the 
requirement does not materially impair the ability of the investor to exercise control over its investment. 
                                                     
 
19 Investment activities are defined as the establishm ent, acquisition, expansion, management, conduct, 
operation, maintenance, use, enjoyment and sale of other disposition of investments.  WT/REG234/1 
 Page 21 
 
 
  68. Each Party accords to investments made in its Ar ea by investors of the other Party, treatment 
in accordance with customary international law, including fair and equitable treatment and full 
protection and security (Article 75).  Article 82 an d Annex 9 prohibit the expropriation (both direct 
and indirect) or nationalization of investments unless  certain specific conditi ons are fulfilled.  Under 
Article 81, each Party allows all transfers relating to  investments in its Area except in certain specific 
circumstances, such as in the case of bankruptcy or criminal or penal offences. 
E. MOVEMENT OF NAT URAL PERSONS  
69. Chapter 11 contains provisions on the movement of natural persons, particularly, the entry 
and temporary stay of nationals for business purpo ses.  It does not apply to measures affecting 
nationals of a Party seeking access to the employment market of the other Party, nor to matters 
regarding nationality or citizenship, or residence or  employment on a permanent basis (Article 130.2) 
and permits a Party to apply measures to regulate the entry and temporary stay of nationals of the 
other Party, including those measures to protect the integrity of its borders. 
70. The Parties grant entry and temporary stay to each others' nationals in accordance with 
Chapter 11 and its related Annex 13.20  The categories of natural pers ons covered by Annex 13 are:  
business visitors;  intra-corporate transferees;  inv estors;  and nationals of a Party who engage in 
professional business activities on the basis of a personal contract with a public or private organization in the other Party.  The Parties cannot  impose or maintain quantitative restrictions on 
these categories of persons.  Those seeking entry and temporary stay may be required to obtain a visa 
and must comply with immigration laws  and regulations of the other Party. 
71. The period that persons in these categories may stay in the other Party is summarized in 
Table IV.1. 
Table IV.1 
Categories and Conditions Applied to Movement of Natural Persons 
Category Japan Chile 
 Initial period of 
entry and stay Extension Initial period of 
entry and stay Extension 
Business visitors 90 days Yes, but no indication 
of extension criteria  90 days Yes, but no indication 
of extension criteria 
Intra-corporate transferees One or three years  Yes, but no indication 
of extension criteria  Up to one year Yes, provided 
conditions on which it is 
based remain in effect. 
Investors One or three years  Yes, but no indication 
of extension criteria  Up to one year Yes, provided 
conditions on which it is based remain in effect. 
Nationals engaged in professional 
business activities on the basis of a 
personal contract with a public or private organization in the other Party
a One or three years  Yes, but no indication 
of extension criteria  Up to one year Yes, provided 
conditions on which it is 
based remain in effect. 
a  In the case of Japan, such professiona ls are engaged in activities which require t echnology or knowledge at  an advanced level  pertinent to 
physical sciences, engineering or other natu ral sciences;  or activities which require knowledge at an advanced level pertinent  to human 
science including jurisprudence, economics , business management and accounting, or wh ich require ideas and sensitivity based on  the 
culture of a country other than Japan.  
Source : Appendix 1 of Annex 13 of the Agreement. 
 
  
                                                     
 
20 Applies only to nationals, not permanent residents of the Parties (Article 131). WT/REG234/1 
Page 22  
 
  72. Transparency provisions require the Parties to  publish an explanation of requirements for 
entry and temporary stay, no later than one year afte r the date of entry into force of the Agreement 
(Article 132).
21  Upon request from the other Party and in  accordance with its laws and regulations, 
the Parties will make data available with respect to the granting of entry and temporary stay.  The 
Table IV.2 shows the number of such grants by Japan in 2004-2006.   
Table IV.2 
Movement of Chilean Natural Persons to Japan 
Categories 
Year Intra-corporate 
transferees Service sellers/ persons responsible for 
setting up commercial presence Other categories of relevance in the 
context of the agreement Total 
2004 0 841 0 841 
2005 0 950 0 950 
2006 1 988 1 990 
Source: WTO Secretariat, based on data provided by Japan. 
 
73. Table IV.3 shows the number of permanent reside nce permits granted by Chile to Japan in the 
period 1999 to 2006. 
Table IV.3 - Number of Permanent residence permits granted by Chile to Japan 
Year 1999 2000 2001 2002 2003 2004 2005 2006 
Permits 97 80 3 59 93 79 79 71 
Source: WTO Secretariat, based on data provided by Chile. 
 
74. The Agreement's dispute settlement provisions provided for in Chapter 16 do not apply to the 
Chapter on entry and temporary stay of natural pe rsons unless two conditions are complied with:  the 
matter involves a pattern of practice;  and the natio nals have exhausted the relevant administrative 
remedies.  Under certain circumstances, the dom estic remedies will be deemed to have been 
exhausted if no final dete rmination has been issued within one year after the initiation of the 
proceedings (Article 133). 
F. DENIAL OF BENEFITS  
75. Under Articles 86 and 115, a Party may deny the be nefits of Chapters 8 and 9 to an investor 
or a service supplier of the other Party if that i nvestor/service supplier is an enterprise "owned" or 
"controlled" by investors/persons of a non-Party, an d the denying Party does not maintain diplomatic 
relations with the non-Party or adopts or mainta ins measures with respect to the non-Party that 
prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of 
the relevant Chapters were accorded to the enterp rise.  Further, subject to prior notification and 
consultation, a Party may deny the benefits of the tw o Chapters to an investor  or a service supplier of 
the other Party if that investor/service supplier is an enterprise owned or controlled by persons of a 
non-Party, and has no substantial business activities in the other Party.22   
                                                      
21 According to Japan, the relevant information is already available on the website of the Ministry of 
Foreign Affairs of Japan ( http://www.mofa.go.jp/j_info/visit/visa/index.html ).  For Chile, an explanation on 
requirements for temporary entry will be published on the following webpage:  www.extranjeria.gov.cl . 
22 An enterprise is "owned" if 50% of its equity interests is beneficially owned by the person or 
investor, while an enterprise is "controlled" by a person or investor if the person or investor has the power to name a majority of its directors or otherwise to lega lly direct its actions in accordance with the laws and 
regulations of  a Party (Articles 105 and 116).    WT/REG234/1 
 Page 23 
 
 
  G. NON-CONFORMING MEASURES  
76. The services and investment Chapters adopt a negative-list approach to the scheduling of 
liberalization commitments, such that the obliga tions of national and MFN treatment, and local 
presence apply fully, except to the exte nt that reservations are listed in relevant annexes.  In the case 
of the investment Chapter, the obligations of na tional and MFN treatment, performance requirements, 
and senior management and boards of directors apply fully, subject to the reservations listed in the 
relevant annexes.  Annex 6 contai ns the Parties' reservations with  respect to existing non-conforming 
measures at the central or national level of gove rnment.  Existing non-conforming measures at the 
local level of government are not listed, although they are nevertheless bound, meaning they can be 
maintained but that new non-conforming measures, or  more restrictive ones, cannot be introduced.  
The measures listed in Annex 6 are subject to a "ratchet" clause (Articles 79.1(c) and 110.1(c)) 
meaning that if a Party unilaterally amends or repeals any existing non-conforming measure with the 
effect of making it more liberal, such libera lization is bound and becomes its new level of 
commitment towards the other Party.   
77. Each reservation in the Annex contains the fo llowing elements:  the sector and sub-sector to 
which the reservation relates23;  the obligation(s) against which the reservation is taken;  the level of 
government to which the measure applies;  the description of the non-conforming measure, and an 
indication of whether the reservation relates to cro ss-border trade in services (which refers to modes 
1, 2 and 4 covered by Chapter 9) and/or to "investment", covered by Chapter 8. 
78. Annex 7 sets out the sectors, sub-sectors, or ac tivities for which a Party reserves the right to 
maintain existing, or adopt new or more restrictive,  measures that do not conform to the obligations of 
national treatment, MFN treatment, performance requi rements, senior management and boards of 
directors, or local presence (Articles 79.2 and 110.2).   
79. The Parties' commitments on financial servi ces under the Agreement are inscribed in 
Annexes 10-12 on a positive-list basis.  Along simila r lines as in the GATS, the Parties have excluded 
from the disciplines of the Agreement activities conduc ted by the central bank or monetary authority 
or by any public entity in pursuit of monetary or exchange rate policies;  activities or services forming 
part of a public retirement plan or statutory syst em of social security;  or activities or services 
conducted for the account, or with the guarantee, or using the financial resources, of the Party, 
including its public entities (Article 117.4).  Additionally, it does not apply to government 
procurement, subsidies, and measures affecting na tural persons of a Party seeking access to the other 
Party's labour market.  The Agreement contains an exception for measures taken for prudential 
reasons (Article 123), which has been modelled on the same provision contained in the GATS Annex 
on Financial Services.   
80. Annex 5 provides that, in the case of Chile, th e obligations and commitments contained in 
Chapters 8 and 10 do not apply to Decree Law 600, Foreign Investment Statute, and to Law 18.657, 
Foreign Capital Investment Fund Law, to the co ntinuation or prompt renewal of such laws, to 
amendments to those laws or to any special and/or  voluntary investment regime that may be adopted 
in the future by Chile.  
81. Annex 8 provides for Chile to reserve the right of the Central Bank of Chile to maintain or 
adopt measures in order to ensure currency stabilit y and the normal operation of domestic and foreign 
payments.  The Central Bank of Chile is empowered inter alia  to regulate the supply of money and 
credit in circulation and international cr edit and foreign exchange operations.  
                                                      
23 In the case of Chile, the services sector description is based on the UN's Provisional Central 
Production Classification (CPC), while for Japan, it is ba sed on the Japan Standard Industrial Classification as 
set out by the Statistics Bureau, Ministry of Internal Affairs and Communications, and revised on 7 March 2002. WT/REG234/1 
Page 24  
 
  1. Chile 
82. Chile has undertaken a number of reservations  applying to all sectors, both for existing 
(Annex 6) and future (Annex 7) non-conforming measu res.  For example, horizontal reservations in 
Annex 6 allow Chile to require that at least 85% of employees in companies employing more than 25 employees be Chilean nationals.
24  National treatment limitations ta ken by Chile in Annex 6 apply 
inter alia  to communications services, business services, the exploitation of natural resources and 
transport services.  Chile has taken eight existing MFN reservations which apply to communications, 
fisheries, printing and publishing, legal services, and transport services.  Table IV.4 contains the 
limitations for existing measures. 
Table IV.4 
Existing non conforming measures listed by Chile in Annex 6 
Sector Obligation Mode Description 
All NT I Possible limitation on the ownership or other related rights 
over State land. 
All NT/LP CBTS Nationality requirement (85% of employees) for employment 
in the case of employers with more than 25 employees. 
Communications – basic national or 
international long-distance, intermediate, supplementary, and limited telecommunications services NT I Concession required for installation, operation and 
exploitation of public and inte rmediary telecommunications 
services in Chil ean territory.   
Communications NT/MFN/P
R/SMBD/LP/ CBTS/I Nationality/establishment/res idency/reciprocity requirements 
for social communication medium, national news agency, public radio broadcasting, limited radio broadcasting 
telecommunications, and cable or microwave television 
services.  Possible quantity requirement (40%) for Chilean 
programs broadcast on public TV channels. 
Energy NT I Exploration, exploitation,  and treatment of liquid or gaseous 
hydrocarbons, deposits or any kind existing in sea waters are subject to conditions determined  by a supreme decree of the 
Chilean President.  Production of nuclear energy is reserved 
for the Chilean Nuclear Energy Commission or its authorized 
bodies. 
Mining NT/PR I Exploration,  exploitation, and treatment of lithium in sea 
waters subject to national jurisdiction are subject to conditions determined by a supreme decree of the Chilean 
president.   
Fisheries aquaculture NT I Concession/authori zation/residency require ments to engage in 
aquaculture activities   
Fisheries NT/MFN/S
MBD/LP CBTS/I Establishment/residency/reci procity/nationality/registration 
requirements for harvesting hydrobiological species, vessel 
registration. 
Sports, industrial fishing and hunting, and 
recreational services LP CTBS Registration requirement. 
Specialized services: customs agents and 
brokers NT/LP CBTS Nationality requirement. 
Specialized services:  private armed 
security guards NT CBTS Nationality requirement. 
R&D services on natural sciences, 
interdisciplinary R&D services, and services incidental to fishing NT CBTS Six months in advance request requirement to conduct 
research in the Chilean 200-mile maritime zone. 
R&D services on natural sciences, interdisciplinary R&D services and engineering related scientific and technical consulting services NT CBTS Authorization requirement for work of a scientific or 
technical nature, or mountain cl imbing, in areas adjacent to 
Chilean borders. 
Research in social sciences NT CBTS Permit re quired to perform excavations, surveys, probing of 
anthropological, archeological, or paleontological material. 
Printing, publishing, and other related 
industries NT/MFN/S
MBD/LP  CBTS/I Nationality/residency requirements.   
Professional services, financial auditors NT/L P CBTS Registration/incorporation requirements. 
Professional services, legal services NT/MFN CBTS Qu alification requirement. Ec uadorian citizens exempt. 
Table IV.4 (Cont'd)  
                                                      
24 In its GATS schedule, the restriction applies to a ll companies with at least 15 employees, except in 
the sector of professional services where 85% of all employees must be Chilean regardless of the size of the 
company.  WT/REG234/1 
 Page 25 
 
 
  Sector Obligation Mode Description 
Professional services, auxiliary services in 
the administration of justice NT/LP CBTS Nationality/residency/min imum experience (three years) 
requirements. 
Air transportation:  rental services of 
aircraft with operator and other supporting 
services for air transport NT/MFN/S
MBD/LP CBTS/I Nationality/domicile/licensing/ reciprocity requirements.   
Water transport services and shipping:  
transport services by sea-going vessels, transport services by non-seagoing vessels NT/MFN/S
MBD/LP CBTS/I Nationality/domicile/residenc y/reciprocity/ownership (above 
50% of capital for a registered vessel by Chilean natural or juridical persons) requirements. Possibility of joint 
ownership. 
Water transport services and shipping:  
transport services by sea-going vessels, transport services by non-seagoing vessels NT/SMBD/
LP CBTS/I Nationality/accreditation/ow nership(above 50% of capital 
held by Chilean natural or juridical persons)/basic course on harbour security requirements. 
Land transportation: other land transport 
services NT/MFN/L
P CBTS Registration/nationality/ownership requirements. Only 
companies organized under laws of Chile, Argentina, Bolivia, 
Brazil, Peru, Uruguay, or Paraguay and Chile may provide international land transporta tion between Chile and these 
countries. 
Land transportation: other land transport 
services NT/MFN CBTS Requirement, upon request, to present documents for 
international driving licenses holders. 
Note:  CBTS: Cross-border trade in services ;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatme nt;  
NT:  National treatment restriction;  SMBD: Senior management and boards of directors restriction;  PR: Performance requirement s. 
 
83. Chile has undertaken a number of reservations fo r future measures as listed in Annex 7 and 
described in Table IV.5.  For example, Chile main tains a limitation on all sectors with regard to the 
ownership or control of agricultural land within fi ve miles of the coastline, and a national treatment 
reservation regarding the sale or disposal of assets in state enterprises or governmental entities.  Chile 
also took an MFN reservation applying to all sectors,  whereby it reserves the right to give preferential 
treatment to countries under any international agr eement preceding the Japan-Chile Agreement.  For 
future international agreements, it reserved the ri ght to grant preferential treatment for aviation, 
fisheries, and maritime matters, including salvage.   
84. Chile's other Annex 7 reservations relate inter alia  to issues involving minorities or 
indigenous peoples, education services, communi cations, construction, e nvironmental services, 
fisheries, social services, and cultural industries. 
Table IV.5 
Future non conforming measures listed by Chile in Annex 7 
Sector Obligations Mode Description 
All NT/MFN I Any measure relating to the ownership or control of agricultural 
land within five miles of the coastline. 
All NT/SMBD I Prohibition or limitations on foreign ownership of state enterprises 
or governmental entities. 
All MFN CBTS/I Any measure according differential treatment to countries under 
any bilateral or multilateral inte rnational agreement in force or 
signed prior to the date of entry in to force of the Agreement.  Any 
measure according differential treatment to countries under any international agreement in force or  signed after the date of entry 
into force of the Agreement involving  aviation, fisheries, or 
maritime matters, including salvage. 
Communications NT/MFN/LP CBTS Any measure relate d to cross border trade in local basic  
telecommunication services and networks, one way satellite broadcasting, supplementary telecommunications services and limited telecommunication services. 
Communications NT/MFN/PR
/SMBD I Any measure related to cross border trade in local basic  
telecommunication services and networks, one way satellite broadcasting, supplementary telecommunications services and limited telecommunication services. 
Issues involving minorities NT/MFN/SM
BD/LP CBTS/I Any measure according rights or preferences to socially or 
economically disadvantaged minorities. 
Issues involving indigenous 
peoples NT/MFN/PR
/SMBD/LP CBTS/I Any measure denying investors of  Japan and their investments or 
service providers of Japan any rights or preferences provided to indigenous peoples. 
Table IV.5 (Cont'd)  WT/REG234/1 
Page 26  
 
  Sector Obligations Mode Description 
Education NT/MFN/LP CBTS Any measures relati ng to natural persons supplying educational 
services.  Not applicable to second-language training, corporate, 
business, and industrial tr aining and skill upgrading. 
Government finances NT I Any measure relating to the acquisition, sale, or disposal by 
Japanese nationals of bonds, treasury securitie s, or any other type 
of debt instruments issued by th e Central Bank or the Government 
of Chile. 
Fisheries:  fishing-related 
activities NT/MFN CBTS/I Right to control foreign fi shing activities, access to Chilean ports, 
and use of beaches, land adjacent to beaches, etc. 
Cultural industries MFN CBTS/I Any measure according differential treatment to countries under 
any existing or future bilateral or multilateral international 
agreement with respect to cultural industries, such as audiovisual 
cooperation agreements. 
Social services: compulsory social security services;  
education services;  health and 
social services NT/MFN/PR
/SMBD/LP CBTS/I Any measure on the provision of public law enforcement and 
correctional services, and the following services established on a 
public interest basis: income security  or insurance;  social security 
or insurance;  social welfare;  public education;  public training;  health care, and child care. 
Environmental services NT/MFN/LP CBTS Any measur e imposing requirement that the production and 
distribution of drinking water, the collection and disposal of waste 
water, and sanitation services may only be provided by juridical 
persons incorporated under Chilean law. 
Construction services NT/LP CBTS Residency/registration/local presence/financial security 
requirements. 
Note:  CBTS: Cross-border trade in services ;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatme nt;  
NT: National treatment restriction;  SMBD: Senior management and boards of directors restriction;  PR: Performance requirements . 
 
2. Japan 
85. In its Annex 6, Japan has listed existing limita tions on national treatment in the form of 
nationality requirements or prior notification requirements in a number of sectors.  In a number of 
professional services, Japan has in place local pres ence requirements.  Japan has taken five MFN 
reservations, all in relation to transport services.   Table IV.6 contains the existing limitations.  
Table IV.6 
Existing non conforming measures listed by Japan in Annex 6 
Sector Obligation  Mode Description 
Automobile maintenance business LP CBTS Establishment/approval requirements. 
Business services: private job placement 
and worker dispatching LP CBTS Establishment/permissi on/notification requirements. 
Construction LP CBTS Establishment/permission/registration requirement.   
Credit Management and Collection 
Business LP CBTS Establishment/incorporated requirements. 
Heat supply NT I Prior notification requirement. 
Telecommunications NT/SMBD I If aggregate votin g rights of: (a) a non-Japanese natural person; 
(b) a foreign government or its representative; or (c) a foreign legal person or entity reach or exce ed one-third of the total, the 
Nippon Telegraph and Telephone Corporation (NTT) may not register shareholders.  Nationality restriction for director and 
auditor of NTT, NTT East, and NTT West Corporations. 
Telecommunication and internet based 
services  NT I Prior notification requirement. 
Drugs and medicines manufacturing  NT I Prior notification requirement. 
Leather and leather products 
manufacturing  NT I Prior notification requirement. 
Matters related to the nationality of a 
ship NT/SMBD I Japanese nationality to be granted to a ship whose owner is a 
Japanese national or a company es tablished under Japanese law of 
which all representatives and not less than two-thirds of 
executives are Japanese nationals. 
Measuring services – commodity inspection and surveyor certification  LP CBTS Establishment/designation/registration requirements. 
Medical, health care and welfare – 
miscellaneous social insurance, social welfare and care services LP CBTS Establishment/approval requirements. 
Mining NT/LP I/CBT
S Nationality requirement. 
Table IV.6 (Cont'd)   WT/REG234/1 
 Page 27 
 
 
  Sector Obligation  Mode Description 
Oil industry NT I Prior notification require ment – exception for organic chemicals. 
Agriculture, forestry and fisheries  NT I Prior notification requirement. 
Professional services – lawyers' offices LP  CBTS Qualification/establishment requirements. 
Professional services – lawyers' offices 
– foreign legal consultants LP CBTS Qualification/establishment requirements.  Minimum required 
stay in Japan of 180 days per year. 
Professional services – patent attorneys' offices LP CBTS Establishment requirement. 
Professional services – notary publics' 
offices NT/LP CBTS Nationality/establishment requirements. 
Professional services – judicial 
scriveners' offices  LP CBTS Qualification /establishment requirements. 
Professional services – certified public 
accountants' offices LP CBTS Establishment requirement. 
Professional services – auditors' offices LP CBTS Qualification/establishment requirements. 
Professional services – architectural 
design, certified real estate appraisers' services, etc. LP CBTS Qualification/establishment requirements. 
Professional services – certified social 
insurance and labour consultants' offices LP CBTS Qualification/establishment requirements. 
Professional services – administrative 
scriveners' offices LP CBTS Qualification/establishment requirements. 
Professional services – land and house 
surveyor services LP CBTS Qualification/establishment requirements. 
Real estate services LP CBTS Establishmen t/licensing/permission/regi stration requirements. 
Real estate appraisal services LP CBTS Establishment/registration requirements. 
Seafarers NT CBTS Nationality  requirement for Japanese vessels except for the 
seafarers referred to in the relevant official notification. 
Security guard services NT I Prior notification requirement. 
Services related to occupational safety and health LP CBTS Residency/establishment/registration requirements. 
Survey services LP CBTS Establis hment/registration requirements. 
Air transport NT/MFN/ 
SMBD I Prior notification/nationality requirements.   
Aircraft services, except air transport NT/SMBD I/CBT
S Prior notification/nationality requirements.  
Air transport – registration of aircraft in 
the national register NT/SMBD I Nationality requirement. 
Transport - Customs brokerage LP CBTS Establishment/permission requirements. 
Transport - Freight forwarding business 
(excluding using air transportation) NT/MFN/S
MBD/LP I/CBT
S Registration/reciprocity/permission/approval/establishment 
requirements. 
Freight forwarding business (only using air transportation) NT/MFN/ 
SMBD I Nationality/registration/pe rmission/approva l/reciprocity 
requirements. 
Railway transport NT I Prior notification re quirement.  Not required for the manufacture 
of vehicles, parts and components for railway transport. 
Road passenger transport – common 
omnibus operators NT I Prior notification requirement.  Not required for the manufacture 
of vehicles, parts and components for omnibus. 
Road transport – passenger and freight transport LP CBTS Establishment/permission requirements. 
Services incidental to trans port - pilots NT/LP CBTS Nationality/establishment requirement. 
Water transport: ocean going transport NT/MFN CBTS Reciprocity requirement. 
Water transport: coastal transport, inland 
water transport, coastal ship leasing  NT I Prior notification requirement. 
Water transport NT/MFN I/CBT
S Ships without Japanese flag are pr ohibited from entering Japanese 
ports not open to foreign commerce and from performing 
cabotage. 
Vocational skills test LP CBTS Establishment/designation requirement. 
Water supply and waterworks NT I Prior notification requirement. 
Wholesale and retail trade LP CBTS Residency/licencing requirements. 
Note:  CBTS: Cross-border trade in services ;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatme nt;  
NT: National treatment restriction;  SMBD: Senior management and boards of directors restriction;  PR: Performance requirements . 
 
Source : Annex 6, The Strategic Economic Partne rship Agreement between Japan and Chile. 
 
86. Japan has reserved the right to maintain existing,  or adopt new or more restrictive, measures 
as listed in Annex 7 and described in Table IV.7.  Japan maintains a reservation for all sectors with 
regard to the sale or disposal of assets in stat e enterprises and governmental entity, as well as with 
respect to future liberalization in sectors currently restricted to designated enterprises or governmental WT/REG234/1 
Page 28  
 
  entities, such as postal services or gambling.  Japan also took an MFN reservation applying to all 
sectors, whereby like Chile, it reserves the right to give preferential treatment to countries under any 
international agreement preceding the Japan-C hile Agreement, as well as under any future 
international agreements with respect to aviation, fi sheries, and maritime matters, including salvage.  
Unlike Chile, Japan has reserved the right to take any measure with r espect to new services other than 
those recognized at the entry into force of the Ag reement, as well as measures relating to the supply of 
services through any mode not technically feasible at the entry into force of the Agreement.  Japan 
maintains the right to adopt any non-conforming m easures in relation to a range of energy services 
and to fisheries. 
Table IV.7 
Future non conforming measures  listed by Japan in Annex 7 
Sector Obligations  Mode Description 
All NT/SMBD I When disposal of interests in  state enterprise etc., possible limitation 
on ownership and controlling interest  by investors.  Any measure 
relating to the nationality of executiv es, managers or members of the 
board of directors. 
All NT/SMBD/ 
LP I/CBTS Any measure relating to future lib eralization in telegraph services;  
postal services and betting and gambling services;  manufacture of tobacco products;  manufacture of  Bank of Japan notes;  and 
minting and sale of coinage in Japan. 
All MFN I/CBTS Any measure that accords di fferential treatment to countries under 
any bilateral or multilateral agreemen t in force on, or signed prior to 
the date of entry into  force of the Agreement.  Any measure that 
accords differential treatment to countries under any bilateral or multilateral agreement involving av iation, fisheries, or maritime 
matters including salvage. 
All (new services) NT/MFN/LP CBTS Any measure relati ng to new services other than those recognized at 
the entry into force of  the Agreement.  Any measure relating to the 
supply of services through any mode in which those services were not technically feasible at the en try into force of  the Agreement. 
Aerospace industry NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investmen t/supply of services in the aircraft 
and space industry. 
Arms and explosives industry NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investme nt/supply of services in the arms 
industry and explosives manufacturing. 
Energy NT/MFN/SM
BD/PR/LP I/CBTS Any measure relating to investment/supply of services in the 
electricity and gas utilities industries and the nuclear energy 
industry. 
Fisheries NT/MFN/SM
BD/PR/LP I/CBTS Any measure relating to investmen t/supply of services in fisheries in 
territorial seas, internal waters, the exclusive economic zone and continental shelf of Japan. 
Information and communications NT/SMBD/ 
PR/LP I/CBTS Any measure relating to investment/supply of services in the 
broadcasting industry. 
Land transaction NT/MFN I Prohibition or restric tions on acquisition or lease of land properties 
in Japan based on reciprocity. 
Security guard services NT/LP CBTS Any measure rela ting to the supply of security guard services.  
Public law enforcement and 
correctional services and social services NT/MFN/SM
BD/PR/LP I/CBTS Any measure relating to investment/ supply of services in public law 
enforcement and correctional services ,  and social services such as 
income security or insurance, soci al security or insurance, social 
welfare, public education, public training, health and child care. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN: Restriction to MFN treatmen t;  
NT: National treatment restriction;  SMBD: Senior management and boards of directors restriction;  PR: Performance requirements . 
 
Source :  Annex 7, The Strategic Economic Partne rship Agreement between Japan and Chile. 
 
H. LIBERALIZATION COMMITMENTS IN SELECTED SERVICES SECTORS  
1. Business Services 
87. Under professional services, Chile has liberalized modes 1 and 2 of certain subsectors such as 
taxation services, architectural services, and engineering services which are unbound under its GATS 
schedule.  Other subsectors of professional services, such as medical and dental services, veterinary 
services, and services provided by midwives, nurses, physiotherapists and para-medical personnel are 
uncommitted to in Chile's GATS schedule, while they  are not subject to any sector-specific national  WT/REG234/1 
 Page 29 
 
 
  treatment reservation under the Agreement.  Computer and related services and real estate services are 
not included in Chile's GATS schedule and are not subject to any specific restriction under the Agreement, thus opening them to Japan's suppliers.  Rental and leasing services without operators is 
unbound for modes 1 and 2 and subject to certain esta blishment restrictions under mode 3 in Chile's 
GATS schedule, but are not subject to any restriction under the Agreement.   
88. Japan has made extensive commitments under business services under its GATS schedule.  
Certain subsectors – uncommitted to in Japan's GATS schedule – are not subject to any sector-specific reservation under the Agreement, thus gua ranteeing non-discrimination to Chilean suppliers 
and services.  This applies to veterinary services.   
2. Communications 
89. Chile maintains certain residency, nationality, and local presence requirements with respect to 
social communications media such as sound and im age transmissions or a national news agency.  
Also, to exploit public and intermediary telecommuni cations services in Chilean territory a concession 
granted by means of a supreme decree is require d, for which only juridical persons organized 
according to Chilean law are eligible.  An offici al decision conferring compliance with technical 
standards issued by the Vice-Ministry of Teleco mmunications is required to render supplementary 
telecommunications services, while the installation, operation and development of limited telecommunications services is subject to the issuance of a permit.  
90. A few additional restrictions apply to audi ovisual services  - a sector uncommitted to in 
Chile's GATS schedule.  For example, licenses for public radio broadcasting services are subject to a 
reciprocity requirement.  Chile also reserved the ri ght to require that 40% of programmes broadcast 
through open television channels be local productions.  It has also taken a broad reservation for future 
measures in cross-border trade and investment  in local basic telecommunication services and 
networks, satellite broadcasting of  digital television, audio, and supplementary telecommunication 
services. 
91. In telecommunications services, Japan requires th at the director and auditors in the Nippon 
Telegraph and Telephone Corpora tion (NTT), NTT East, and NTT West be Japanese nationals. 
Foreign capital participation in NTT is also restrict ed up to one third.  In addition, foreigners who 
want to invest in telecommunications and intern et-based services in Japan are subject to a pre-
notification requirement under the Foreign Exchange and Foreign Trade Law. 
92. In audiovisual services, Japan has liberali zed motion picture and video tape production, 
distribution and projection services, and sound reco rding services in its GATS schedule.  Under the 
Agreement, it reserved the right under Annex 7 to take any measure relating to investment and 
cross-border trade in services in the broadcasti ng industry, a sector uncommitted to in its GATS 
schedule. 
3. Financial Services 
93. Chapter 10 on financial services governs all aspects of  trade in financial services.  It applies to 
(a) financial institutions of the other party;  (b) i nvestors of the other Party, and investments by such 
investors, in financial institutions in the Party’s Ar ea; and (c) cross-border trade in financial services.  
In addition to the market access and national tr eatment obligations, the chapter incorporates by 
reference Articles 81 to 86 of the Investment Chap ter (i.e. transfers; expr opriation and compensation; 
subrogation;  special formalities and information requirements; temporary safeguard measures; and 
denial of benefits) as well as Articles 114 and 115 of the Chapter on Cross-Border Trade in Services 
(i.e. restrictions to safeguard the balance of payments ; and denial of benefits).   No other provisions of WT/REG234/1 
Page 30  
 
  these two chapters apply to financial services, including the investor-state dispute settlement 
mechanism of Chapter 8.  
94. Chapter 10 contains a number of additional pr ovisions.  For instance, Article 121 specifies 
that financial institutions of the other Party will  be permitted to provide any new financial services 
where commitments are undertaken, but only if the supply of such new services does not require the 
Party to adopt new laws or modify existing ones.  Article 125 obliges each Party to grant to financial 
institutions of the other Party established in its Area access on a national treatment basis and 
conditions to payment and cleari ng systems operated by public entities and to official funding and 
refinancing facilities.   
95. The Parties' liberalization obligations on fina ncial services are contained in Articles 118 
(National Treatment), 119 (Market Access for Financ ial Institutions), and 120 (Cross-Border Trade); 
related commitments are specified in Annexes 10, 11  and 12.  Liberalization modalities for this sector 
differ from those of Chapters 8 and 9.  Article 118 provides for national treatment for investors, 
financial institutions, and for investments of invest ors in financial institutions.  Article 119, along 
similar lines as GATS Article XVI, provides for market access, although only as it relates to the 
establishment and operations of financ ial institutions of the other Party, and not to cross-border trade.  
Each Party's commitments in relation to these two Articles are containe d in Annex 10 and, like 
GATS, are based on a positive-list approach, whereby the obligations only apply to the sector listed 
and subject to conditions or  qualifications specified. 
96. Article 120.1 requires each Party to permit, on a national treatment basis, cross-border 
financial service suppliers of the other Party to s upply the financial services specified in the schedule 
of the former Party in Annex 11, subject to any te rms and conditions therein.  Annex 11 is also based 
on a positive-list approach.   
97. Article 120.2 requires each Party to permit persons  located in its Area, and its natural persons 
in the Area of the other Party, to purchase fina ncial services from cross- border financial service 
suppliers of the other Party located in the Area of  the other Party.  The provision specifies that this 
does not mean that cross-border financial service s uppliers of the other Party are permitted to do 
business or solicit in the Area of the Party.  Like for Article 120.1, this obligation applies only in 
sectors listed in Annex 12, subject to any terms and conditions therein.   
(a) Commitments relating to investors and investments in financial institutions 
98. Japan's commitments extend acro ss all insurance, banking and other financial services, with 
no limitations, except that, as regards banking and other financial services, the deposit insurance 
system does not cover deposits taken by branches of foreign banks. 
99. Chile's commitments in this area are more complex.  In the insurance sector, certain 
commitments are undertaken on the sale of direct lif e insurance; direct general insurance; insurance 
for international maritime transport, internationa l commercial aviation and goods in transit; insurance 
brokers; administration of voluntary pension savings plan through life insurance; reinsurance and 
retrocession; claims settlement services; and aux iliary insurance services.  These commitments are 
subject to a number of sectoral exclusions and/ or limitations to market access, although there are no 
restrictions on the number of suppliers.  No nati onal treatment limitations, including foreign equity 
limits, are maintained.  Chile's GATS commitments on insurance cover direct life insurance, direct 
general insurance, reinsurance and retrocession, and broking.   
100. 
With respect to banking services, Chile's commit ments cover a range of core banking services 
(including acceptance of deposits, credit granting, purchase of publicly-offered securities, and issue 
and operation of credit cards) as well as a numb er of complementary banking services (including  WT/REG234/1 
 Page 31 
 
 
  financial leasing, management of funds of thir d parties by mutual funds and investment funds 
companies, and intermediation of publicly offere d securities).  These commitments are subject to a 
number of sectoral exclusions a nd/or limitations to market acces s and national treatment, although 
there are no restrictions on the number of suppliers, nor any foreign equity limits.  Certain of these 
services are uncommitted to in Chile's GATS schedul e of commitments, e.g. fund management.   
101. Chile also undertook commitments in certain secur ities services, including some that are also 
the subject of commitments under the GATS such as intermediation of publicly offered securities, 
operations in stock exchange derivatives, or securities risk trading, as well as others that are uncommitted to under the GATS such as trading in metals on the stock exchange or management of 
voluntary pension savings plans. 
(b) Commitments Relating to Cross-Border Trade 
102. Chile's commitments in Annex 11 (national tr eatment for cross-border financial service 
suppliers) cover the following activities, subject to cer tain limitations: insurance of risks - and related 
brokerage - relating to international maritime tr ansport and international commercial aviation, and 
goods in international transit; reinsurance, retr ocession and reinsurance brokerage; consultancy, 
actuarial and risk assessment services; provision and tr ansfer of financial information; financial data 
processing;  advisory and other auxiliary financ ial services (excluding intermediation and credit 
reference and analysis).  The introductory note to  Chile's schedule in the Annex suggests that these 
commitments only concern mode 1.  In the GATS,  Chile's only financial services commitments under 
mode 1 are with respect to reinsurance and retrocession. 
103. Japan's commitments in Annex 11 are limited to the supply of a service from the Area of a 
Party into the Area of the other Party (i.e. m ode 1 in GATS terms).  In insurance, Japan's 
commitments extend to MAT insurance, reinsurance and retrocession, and auxiliary services in line 
with the WTO Understanding on Commitments in Fi nancial Services, with certain exceptions (in 
respect of domestic transport insurance).  Thes e commitments foresee the application of certain 
commercial presence requirements.  With respect to banking and other financial services, Japan's 
commitments concern the provision and transfer of financial information and financial data 
processing, advisory and other auxiliary services (excluding intermediation) .  The only limitation 
listed for these services refers to a commercial presence requirement for discretionary investment management services.   
104. Chile's commitments in Annex 12 concern the sa me services sub-sectors listed in Annex 11, 
with the addition of the following banking services: acceptance of deposits; lending; financial leasing; 
all payment and money transmission services; guarantees and commitments; trading for own account; 
participation in issues of all kinds of securiti es; money broking; asset management; and settlement 
and clearing services.  In the GATS, Chile has no financial services commitments under mode 2 (i.e. consumption abroad). 
105. Japan's commitments pursuant to Article 120 in Annex 12 (purchase by persons located in the 
Area of a Party, and natural persons of a Party in the Area of the other Party) concern: the insurance 
of risks relating to goods in international transit and to maritime shipping, commercial aviation, space 
launching and freight; reinsurance and retrocession, auxiliary insurance services; and all banking and 
other financial services (with the exception of insurance).   WT/REG234/1 
Page 32  
 
  4. Transport Services 
(a) Air Transport services 
106. Chapter 9 on cross-border trade in services excludes measures affecting traffic rights, 
however granted, or measures affecting services directly  related to the exercise of traffic rights, other 
than measures affecting aircraft repair and main tenance services, the selling and marketing of air 
transport services, and computer reservation system services.  However, all air transport services are 
subject to Chapter 8 on investment.  Chile re served a number of air transport measures under 
Annex 6, for example, to register an aircraft in Chile, one needs to be a Chilean natural person or a 
juridical person with principal domicile and real and effective seat in the country, and with the 
president, manager and the majority of directors of the company of Chilean nationality;  and 
foreigners can only provide air transpor tation services on condition of reciprocity.  
107. Japan has also undertaken a number of reserva tions for existing non-conforming measures in 
relation to air transport, for example: prior notif ication is required under the Foreign Exchange and 
Foreign Trade Law for foreign investments in the air transport business in Japan;  nationality 
requirements are applied regarding for the conduct of air transport services as a 'Japanese air carrier'; 
foreign aircrafts cannot be used for flights between points within Japan;  and authorization is required 
for foreign carriers to supply international air transport services.  
(b) Maritime transport services 
108. With regard to maritime transport services - a sector where Chile has no GATS commitments, 
but in which it has taken four MFN exemptions - Chile has scheduled a number of reservations under 
Annex 6.  In particular, only a Chilean natural or ju ridical person can register a vessel in Chile.  Such 
juridical person must be constituted with its princi pal domicile and effective seat in Chile, with 50% 
of its capital held by nationals, and with its preside nt, manager and the majority of its directors of 
Chilean nationality, although certain  exceptions are permitted, including  for reasons of reciprocity.  
Nationality requirements also apply to ship crews.  Cabotage is reserved for Chilean vessels, although 
some exceptions are foreseen.  Chile also has a reservation that shipping agents and representatives of 
ship operators be nationals.  In the case of a juri dical person, 50% of the capital must be owned by 
nationals and the chairman, administ rators, managers or directors must  be Chileans.  Persons involved 
in unloading or otherwise using ports must also be nationals. 
109. Under Japan's GATS commitments, maritime tr ansport services are unbound in all modes, 
while a number of auxiliary services are unrestrict ed: it has liberalized pushing and towing services 
(modes 2 and 3), maritime agency services (modes 1, 2, and 3) and salvaging and refloating, watering, 
fuelling and garbage collection services (modes 1, 2, and 3).commitments.  In the Agreement, it 
bound the existing level of access through various r eservations under Annex 6, for example: Chilean 
oceangoing ship operators may be restricted or  prohibited from entering Japanese ports or from 
loading and unloading cargoes in Japan in cases where Japanese oceangoing ship operators are 
prejudiced by Chile;  prior notification is requi red under the Foreign Exchange and Foreign Trade 
Law for foreign investments in the water transport industry in Japan; ships not flying the Japanese 
flag are prohibited from entering Japanese ports th at are not open to foreign commerce, although 
some exceptions are foreseen.  Auxiliary maritime  transport services are liberalized as under the 
GATS schedule.   
I. D
OMESTIC REGULATION  
110. Article 112 on licensing and certification is based on Article VI.4 of the GATS.  The Parties 
endeavour to ensure that measures relating to  authorizations, qualification requirements and 
procedures, technical standards and licensing requi rements are: based on objective and transparent  WT/REG234/1 
 Page 33 
 
 
  criteria, such as competence and the ability to supply the services;  not more burdensome than 
necessary to ensure the quality of the services;  and do not constitute  a disguised restriction on the 
cross-border supply of the service. 
J. RECOGNITION  
111. Where a Party recognizes education, experience, licenses or certifications obtained in a 
non-Party, it is not bound to accord this treatment to the other Party.  The Party shall provide the other 
Party adequate opportunity to demonstrate that th e education or experience obtained, requirements 
met, or licenses or certifications granted in the other Party should also be recognized (Article 133.3).   
K. SAFEGUARDS  
112. In the event of serious balance-of-payments and external financial difficulties, the Parties may 
take temporary safeguard measures taking the form of  restrictions to cross-border trade in services 
(Article 114) or, in the case of the investment chap ter, measures regarding paym ents and transfers that 
are inconsistent with national treatment or with the transfer obligation (Article 85).  Temporary 
safeguards under the investment chapter can also be used in situations where, in exceptional 
circumstances, movements of capital cause serious difficulties for macroeconomic management.  Any 
restrictions applied pursuant to Articles 85 and 114 have to comply with a number of requirements, 
for example, to be consistent with the Articles of the Agreement of the IMF, to avoid unnecessary 
damage to the commercial, economic and financial in terests of the other Party, to not exceed those 
necessary, to be temporary and subject to progr essive phase-out, and to be promptly notified.  
V. PROVISIONS AFFECTING TRADE IN GOODS, SERVICES AND INVESTMENT  
A. COMPETITION POLICY  
113. Chapter 14 contains provisions relating to compe tition.  The Parties agree to take appropriate 
measures against anti-competitive activ ities so that the benefits of trade and investment liberalization 
are not diminished or nullified.  They agree to  cooperate in controlling anti-competitive activities 
subject to their respective available resources and to  apply their competition la ws and regulations in a 
manner which does not discriminate between person s in like circumstances on the basis of their 
nationality.  In addition, they agree to implemen t administrative and judicial procedures in a fair 
manner to control anti-competitive activities, pursuant to their relevant laws and regulations, and to 
promote transparency of the implementation of their competition laws and regulations and their 
competition policy.  The dispute settlement provi sions of the Agreement do not apply to the 
competition policy provisions.  
B. GOVERNMENT PROCUREMENT  
114. Chapter 12 and Annex 14 contain the provisions relating to government procurement.  The 
Parties must provide immediately and unconditionally to the goods, services and suppliers of the other 
Party, treatment no less favourable than that they  accords to their own goods, services and suppliers 
(Article 137.1).  Other general principles are the prohibition of offsets (Article 139), and notice of 
procurement (Article 143).  Challenge pr ocedures are laid out in Article 149. 
115. In the case of Japan, Chapter 12 applies to th e entities covered by Annexes 1-3 of Japan's 
Appendix I to the Agreement on G overnment Procurement (GPA) in Annex 4 to the WTO Agreement 
except for 13 Japanese companies which are detailed in Annex 14.25  For Chile, Chapter 12 applies to 
the office of the president and 20 government ministries or councils, regional governments, 
                                                      
25 Japan is a signatory of the WTO Agreement on Government Procurement, Chile is an observer. WT/REG234/1 
Page 34  
 
  municipalities and a number of state-owned compani es.  Chapter 12 applies to the goods and services 
covered by Japan's Appendix I to the GPA and to construction services covere d by Annex 5 of Japan's 
Appendix I to the GPA.  In the case of Chile, Chapte r 12 applies to all goods and to all services except 
financial services, and to all construction servi ces except those intended for Easter Island. 
116. The thresholds applied by Japan are the sa me as those under the GPA, except that the 
thresholds for procurement of goods and services (o ther than construction services and architectural, 
engineering and other technical services) by such entities other than those covered by Annex 2 of 
Japan's Annex I to the GPA Agreement are SDR 100,000.
26  The thresholds applied by Chile are 
detailed in Table V.1. 
Table V.1  Thresholds applied to government procurement by Chile under the Agreement (SDR) 
Entity Goods Services Construction services 
Government Ministries 100,000 100,000 5,000,000 
Municipalities 200,00 0 200,000 10,000,000 
State-owned companies 300,000 300,000 10,000,000 
 
117. Article 156 provides for the establishment of  a Committee on Government Procurement 
whose functions include reviewing and monitoring th e implementation and operation of Chapter 12 of 
the Agreement;  analyzing of available informati on on each Party's government procurement market;  
reporting the findings of the Committee to the Commission;  and carrying out other functions as may 
be delegated by the Commission. 
C. INTELLECTUAL PROPERTY  
118. Chapter 13 of the Agreement contains provisions  governing intellectual property.  The Parties 
shall ensure adequate, effective and non-discriminat ory protection of intellectual property, promote 
efficiency and transparency in the administration of the intellectual property protection system, and 
provide for measures for adequate and effec tive enforcement of IPR against infringement, 
counterfeiting and piracy (Article 158.1).  The Parties affirm their existing rights and obligations 
under the TRIPS Agreement (Article 158.3).  In add ition to the categories of IPR mentioned in the 
TRIPS Agreement, the Parties provide protection fo r new varieties of plants (Article 162).  Under 
geographical indications, Japan has listed Satsuma fo r spirits, while Chile has listed Pisco Chileno.   
119. A committee on intellectual property is establishe d under the Agreement which is responsible 
for reviewing and monitoring the implementation a nd operation of Chapter 13;  discussing any issues 
related to intellectual property, such as areas and forms of cooperation, enforcement of IPR, 
geographical indications, and public awareness c oncerning protection of intellectual property;  
reporting the findings of the committee to the Commission;  and carrying out other functions as may be delegated by the Commission (Article 165).   
D. I
NSTITUTIONAL PROVISIONS  
1. General Provisions and Exceptions 
120. General exceptions for goods and services ar e maintained by incorporating into the 
Agreement mutatis mutandis  Article XX of the GATT 1994 for goods27 and Article XIV of the GATS 
                                                      
26 The thresholds for Japan, contained in document GPA/W/299/Add.5 (8 February 2008), which are 
effective from 1 April 2008 – 31 March 2010, provide for a corresponding threshold of SDR 130,000. 
27 For the purposes of trade in goods, rules of origin, customs procedures, sanitary and phytosanitary 
measures, technical regulations, standards and conformity assessm ent procedures and investment.  WT/REG234/1 
 Page 35 
 
 
  for services-related issues (Article 192).28  Article 193 sets security exceptions that are similar to those 
in Article XXI of the GATT 1994 and Article XIV bis of the GATS.  The Chapter also includes 
exceptions for taxation (Article 194).  However, fo r trade in goods, Article 13 (national treatment) 
applies to taxation measures to the same extent as Article III of the GATT 1994, while for trade in 
cross-border services Articles 107 (national treatment) and 108 (MFN treatment) apply to taxation 
measures to the same extent as covered by the GATS, and for investment Article 82 (Expropriation 
and Compensation) applies to taxation measures in certain circumstances. 
2. Accession and termination 
121. There are no accession provisions in the Agre ement.  Either Party may terminate the 
Agreement by giving one year's advance notice in writing (Article 199).  
3. Institutional framework 
122. In Chapter 17 the Parties agree to establish a Commission, the functions of which include the 
following: to review and monitor, and consider  any matters relating to, the implementation, 
interpretation and operation of the Agreement; to  consider and recommend to the Parties any 
amendments to the Agreement; and to supervise and coordinate the work of all committees and 
working groups established under the Agreement. 
123. In Article 27 the Parties agree to the establis hment of a Committee on Trade in Goods which 
is responsible for the effective implementation and operation of Chapters 3 and 4.  The Committee is 
also responsible for the review and monitoring of  any amendments to the product specific rules and 
minimum data requirement for certificate of origin, proposed by either Party. 
124. Articles 4-10 deal with measures to enhance tr ansparency in and between the Parties.  The 
Parties must promptly publish or otherwise make publicly available laws, regulations, and 
administrative rulings of general application (Article 4).  They agree to the extent practicable to make 
public in advance administrative regulations that th ey propose to adopt and to provide a reasonable 
opportunity for comments by the public before adopti on of such regulations (Article 6).  Provisions 
are also made for administrative procedures (Article 7);  review and appeal (A rticle 8);  confidential 
information (Article 9); and contact points (Article 10). 
4. Dispute settlement 
125. Chapter 16 sets out procedures on the avoidance or  settlement of disputes between the Parties 
relating to the implementation, interpretation or operation of the Agreement.  Article 176 provides a 
choice-of-forum clause for matters arising under bo th the Agreement and the WTO Agreement.  Once 
the complaining Party has chosen the forum to settle  the dispute, that forum shall be used to the 
exclusion of the other forum (exclusive forum clause).   
126. The Chapter encourages the Parties to resolv e disputes through consultations which are 
requested in writing.  In the event that consultati ons between the Parties fail to settle the dispute 
within 45 days from the date of receipt of the requ est for consultations (30 days for cases of urgency, 
including perishable goods), the complaining Part y may request the establishment of an arbitral 
tribunal (Article 178.1). 
127. Articles 179, 180, 181 and 182 deal respectively with the terms of reference, composition, 
functions, and proceedings of arbitral tribunals.  The arbitral tribunal meets in closed session and its 
                                                      
28 For the purposes of investment, cross-border trad e in services, financial services and entry and 
temporary stay of nationals for business purposes. WT/REG234/1 
Page 36  
 
  deliberations and the documents submitted to it are kept confidential.  Where a  Party has provided 
information or written submissions designated to be c onfidential, that Party shall, upon request of the 
other Party, provide a non-confidential summary of the information or written submissions which may 
be disclosed publicity. 
5. Relationship with other agreements concluded by the Parties 
128. The Agreement's relationship with other agreemen ts concluded by the Parties is defined in 
Article 3, where the Parties reaffirm their right s and obligations under the WTO Agreement or any 
other agreements to which both Parties are parties.   
129. Table V.2 lists all other regional trade agreem ents (RTAs) notified and not notified to the 
GATT/WTO and in force to which Japan and Chile are party.  WT/REG234/1 
 Page 37 
 
 
  Table V.2 
Japan and Chile:  Participation in other RTAs (notified and non-notified in force)  
GATT/WTO Notification 
Partner/ 
Agreement Date of 
entry 
into 
force Type of 
agreement Year WTO Provision 
 JAPAN  
Thailand 01.11.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Mexico 01.04.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
 C HILE  
Panama 07.03.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
China 01.10.06 Goods 2007 GATT Art. XXIV 
Brunei, New Zealand, Singapore (Trans-
Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Communities 01.03.05 Services 2005 GATS Art. V 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
European Communities 01.02.03 Goods 2004 GATT Art. XXIV 
El Salvador 01.06.02 Goods & Services  2004 GATT Art. XXIV & GATS Art. V 
Costa Rica 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA* 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
India 16.08.07 Goods  Not Notified 
 
* Chile has concluded six RTAs under the LA IA framework (with MERCOSUR, Bolivia, Co lombia, Ecuador, Peru, and Venezuela).  
These RTAs have not been notified, but are included in periodic reports submitted by LAIA. 
 EFTA: European Free Trade Area 
GSTP: Global System of Trade Preferences 
LAIA: Latin American Integration Association PTN: Protocol relating to Trade Ne gotiations among deve loping countries 
 
Source: WTO Secretariat. WT/REG234/1 
Page 38  
 
  E. OTHER 
1. Environment 
130. In the Joint Statement issued on the occasion of  the signing the Agreement, the Ministers for 
Foreign Affairs of the Parties confirmed that the gove rnments of the Parties reaffirm their intention to 
continue to pursue a high level of environmenta l protection and to fulfill commitments of the 
respective Parties under applicable in ternational environment agreements .  It is also confirmed that 
the governments share the view that it is inappropria te to set or use envir onment laws, regulations, 
policies and practices for the purposes of disguised restriction on international trade and that it is 
inappropriate to relax, or fail to enforce or admini ster environmental laws a nd regulations solely to 
encourage trade and investment. 
2. Labour 
131. In the Joint Statement issued on the occasion of  the signing the Agreement, the Ministers for 
Foreign Affairs of the Parties confirmed that the gove rnments of the Parties reaffirm obligations of the 
respective Parties as members of the ILO.  It is al so confirmed that the governments share the view 
that it is inappropriate to set or use labour laws , regulations, policies and practices for the purposes of 
disguised restriction on international trade and that  is inappropriate to weaken, reduce or fail to 
enforce or administer the protections afforded in domestic labour laws solely to encourage trade or 
investment.   WT/REG234/1 
 Page 39 
 
 
  ANNEX  I 
Indicators of Trade Liberalization under the Agreement  
 
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tables A.1 (Chile) and A.2 
(Japan), by agricultural (WTO definition), non-ag ricultural and total products.  Applied MFN duty 
rates in 2006 serve as a comparison. 
2. Chile  has a mostly flat MFN tariff structure.  It s (unweighted) average MFN rate (2007) is 6% 
on all goods, with a slightly higher average tari ff for agricultural goods than for non-agricultural 
products.  Only 0.4% of Chile's tariff lines are duty-fr ee at an MFN level.  On entry into force of the 
Agreement, Japan's exporters enjoyed a relative ma rgin of preference of 83.3% on non-agricultural 
products vis-à-vis  the prevailing average MFN tariff in 2007, and a relative margin of preference of  
57.4% in agricultural goods.  The share of duty-free lines increased to 78.2 % of all products.  By the 
end of the transition period in 2022, the average tari ff faced by Japan's exporters on all products is set 
to be 0.4%, with the share of duty -free tariff lines increasing to 94.3%.   
Table A.1  
Chile: Indicators of MFN and preferential tariff rates on imports from Japan 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 6.0 6.0 0.4 6.1 6.1 0.0 6.0 6.0 0.5 
Japan 2007 1.2 5.4 78.2 2.6 6.0 57.1 1.0 5.3 81.4 
 2008 1.1 4.8 78.2 2.5 5.7 57.1 0.8 4.5 81.4 
 2009 0.9 4.2 78.2 2.4 5.5 57.1 0.7 3.8 81.4 
 2010 0.8 3.6 78.2 2.3 5.3 57.1 0.6 3.1 81.4 
 2011 0.7 3.0 78.2 2.1 5.0 57.1 0.4 2.3 81.4 
 2012 0.5 4.2 87.5 2.0 4.9 58.5 0.3 3.7 91.9 
 2013 0.5 3.9 87.5 2.0 4.7 58.5 0.3 3.3 91.9 
 2014 0.4 4.2 89.3 1.9 5.1 63.3 0.2 3.5 93.3 
 2015 0.4 4.0 89.3 1.8 4.9 63.3 0.2 3.1 93.3 
 2016 0.4 3.7 89.3 1.8 4.8 63.3 0.2 2.8 93.3 
 2017 0.4 5.3 93.0 1.7 5.5 69.2 0.2 4.9 96.6 
 2018 0.4 5.2 93.0 1.7 5.5 69.2 0.2 4.9 96.6 
 2019 0.4 5.7 93.6 1.7 5.7 71.0 0.2 5.6 97.1 
 2020 0.4 5.6 93.6 1.7 5.7 71.0 0.2 5.5 97.1 
 2021 0.4 5.6 93.6 1.6 5.7 71.0 0.2 5.5 97.1 
 2022 0.4 6.2 94.3 1.6 6.3 74.3 0.2 5.9 97.3 
a  WTO Definition.   
Source:   WTO Secretariat estimates based on data provided by Chile. 
 
3. Japan's average applied MFN rate in 2007 was 4.75%;  the average applied tariff on 
agricultural products was roughly three times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 41.7% of all tariff  lines.  Chilean exporters  enjoyed an absolute 
margin of preference of 1.5% for agricultural goods vis-à-vis  the prevailing average MFN tariff in 
2007, and 2.7% for non-agricultural goods.  Overall, Chilean exporters enjoyed an average margin of 
preference of 2.5% vis-à-vis the prevailing average applied MFN tariff, as well as an increase 
to 81.7% in the share of Japan's duty-free lines.  By the end of the transition period in 2022, these 
figures will increase to 3.1% and 89%. 
 
  WT/REG234/1 
Page 40  
 
  Table A.2 
Japan: Indicators of MFN tariff rates and preferential rates for imports from Chile 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 4.75 8.32 41.69 11.21 15.82 25.80 3.38 6.25 45.55 
Chile 2007 2.25 13.84 81.75 9.74 18.05 40.98 0.66 7.98 91.64 
 2008 2.18 13.44 81.75 9.51 17.62 40.98 0.63 7.60 91.64 
 2009 2.11 13.02 81.75 9.27 17.18 40.98 0.60 7.23 91.64 
 2010 2.05 12.62 81.75 9.04 16.76 40.98 0.57 6.84 91.64 
 2011 1.98 12.23 81.75 8.83 16.37 40.98 0.53 6.47 91.64 
 2012 1.92 12.65 82.76 8.62 16.61 42.79 0.50 6.76 92.46 
 2013 1.86 12.26 82.76 8.41 16.20 42.79 0.48 6.40 92.46 
 2014 1.81 14.09 85.10 8.20 17.97 48.45 0.45 7.66 94.03 
 2015 1.77 13.81 85.10 8.06 17.66 48.45 0.43 7.40 94.03 
 2016 1.73 13.52 85.10 7.92 17.36 48.45 0.42 7.14 94.03 
 2017 1.69 17.15 88.32 7.74 21.23 56.86 0.40 9.58 95.78 
 2018 1.68 17.08 88.32 7.70 21.13 56.86 0.40 9.57 95.78 
 2019 1.67 17.03 88.37 7.65 21.06 57.09 0.40 9.57 95.78 
 2020 1.67 16.96 88.37 7.61 20.95 57.09 0.40 9.57 95.78 
 2021 1.66 16.89 88.37 7.57 20.84 57.09 0.40 9.56 95.78 
 2022 1.65 17.97 89.00 7.53 22.82 60.13 0.40 9.69 95.83 
 
a  WTO Definition. 
 
Note:  For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-related calculations;  lines with specific duties 
 and the non ad valorem  component of lines with compound and altern ate rates are excluded from the calculations. 
 
Source:  WTO Secretariat estimates based on data provided by Japan. 
 
4. Table A.3 shows the market access opportunities in  Japan for Chile's top 25 exports, which in 
2004-2006 accounted on average for 75.3% of Chile's gl obal exports.  The table shows at which year 
all HS 9-digit tariff lines corresponding to the product definition (i.e. applying to the 6-digit HS code 
used to capture the volume of trad e) will become duty-free in Japan. 
5. Chile's top 25 exports cover a total of 137 HS 9-digit tariff lines.  Eight of Chile's top 
25 exports (which account for 9 HS 9-digit lines a nd 29% of Chile's average global exports in the 
period 2004-06) already benefit from zero MFN du ties in Japan's market, a further 5 products 
(accounting for 31 tariff lines and a further 7.7% of Chile's average global exports) gain immediate 
duty-free access;  four products are granted duty-free access in 2017, one in 2019, two in 2022, and 
four products, which are fish or meat remain subject  to duties.  The margin of preference granted to 
Chile by Japan under the Agreement va ries from 0 to 17 percentage points. 
Table A.3 – Market access opportunities und er the Agreement for Chile's top 25 exports 
Access Conditions to Japan's import markets 
MFN (2007) Chile's top export products in 2004-2006  
Number of Tariff 
Lines Duty-free in 
HS number and description of 
the product  Share in 
global 
exports 
(%) Avg. 
applied 
rate 
(%) Duty
-free Dutiable 2007 2012 2017 2019 2022 Remain 
Dutiable  
740311 Cathodes and sections 
of cathodes 26.9 0.0a 1 2   2    
260300 Copper ores and 
concentrates. 17.9 0.0 1        
740200 Unrefined copper; 
copper anodes for electrolytic refining. 3.9 0.0
1 1 2 2      
261310 Molybdenum ores and 
concentrated, roasted 3.1 0.0 1        
Table A.3 (Cont'd)   WT/REG234/1 
 Page 41 
 
 
  Access Conditions to Japan's import markets 
MFN (2007) Chile's top export products in 2004-2006  
Number of Tariff 
Lines Duty-free in 
HS number and description of 
the product  Share in 
global 
exports 
(%) Avg. 
applied 
rate 
(%) Duty
-free Dutiable 2007 2012 2017 2019 2022 Remain 
Dutiable  
261390 Molybdenum ores and 
concentrated, other 1.9 0.0 1        
220421 Wine, in containers 
holding 2 litres or less 1.8 - -  2   1 1   
470321 Chemical wood pulp, 
coniferous (semi-bleached or bleached) 1.8 0.0 1        
440710 Coniferous wood sawn 
or chipped lengthwise, 
sliced or peeled 1.6 1.2 17 5 5      
080610 Fresh grapes 1.6 12.4  1     1  
290511 Methanol (methyl 
alcohol) 1.5 0.0 1        
740319 Refined copper and 
copper alloys, unwrought, other 1.5 0.0
1 2 4 2  2    
030420 Frozen fish fillets 1.2 4.3  8   2   6 
271011 Light oils and 
preparations 1.1 1.3 5 11 4  7    
030410 Fish fillets, fresh or 
chilled 1.1 4.6  10  1 1   8 
230120 Flours, meals and 
pellets, of fish or of 
crustaceans, molluscs 
or other aquatic invertebrates 1.1 0.0 2        
710812 Gold, other unwrought 
forms 0.9 0.0 1        
720270 Ferro-molybdenum 0.9 3.3  1 1      
080810 Apples 0.8 17.0  1     1  
470329 Chemical wood pulp, 
non-coniferous 0.8 0.0 1        
440910 Wood (including strips 
and friezes for parquet 
flooring, not assembled), coniferous 0.7 3.1 1 3 3      
271019 Other petroleum oils 
and oils obtained from 
bituminous minerals, 
other than light oils 0.7 2.2 9 22 11  11    
030490 Other fish fillets and 
other fish meat 
(whether or not 
minced), fresh, chilled or frozen 0.6 4.2  13  3    10 
020329 Other frozen meat 
other than carcasses, 
hams, shoulders and 
cuts thereof 0.6 2.2 1 3      3 
740811 Copper wire, of which 
the maximum cross-sectional dimension 
exceeds 6 mm 0.6 3.0  1 1      
030319 Other pacific salmon 
other than sockeye salmon 0.6 3.5  2   1   1 
  75.3  46 91 29 4 27 1 2 28 
- -:  Specific duty. 
a combination of MFN duty-free and specific duty. 
 
Source:  WTO estimates based on data provided by Japan  and UNSD, Comtrade data. WT/REG234/1 
Page 42  
 
  6. Table A.4 shows the market access conditions in Chile for Japan's top 25 exports, which in 
2004-2006 accounted for 36.7% of its global exports.  All of these tariff lines are subject to duties on 
an MFN basis.  Twenty-one products, accounting for 103 tariff lines became duty-free upon the entry 
into force of the Agreement;  a further four pr oducts, accounting for 21 lines became duty-free in 
2012.  The margin of preference granted to Japan by Chile under the Agreement varies from 2 to 6 
percentage points. 
Table A.4 – Market access opportunities und er the agreement for Japan's top 25 exports 
Access Conditions to Chile's import markets  Japan's top export products in 2004-2006  MFN (2007)  Duty-free in  
HS number and description of the product  Share in 
global 
exports 
(%) Avg. 
applied 
rate 
(%) Number 
of 
dutiable 
tariff 
lines  2007 2012 
870323 Motor cars, of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 5.8 6.0 6 6  
870324 Motor cars, of a cylinder capacity exceeding 3,000 cc 4.4 6.0 6 6  
854221 Electronic integrated circuits and microassemblies, digital 3.4 6.0 3 3  
847330 Parts and accessories of the machines of heading 84.71 2.5 6.0 4 4  
847989 Machines and mechanical appliances, other 1.8 6.0 4 4  
852990 Parts suitable for use solely or  principally with apparatus of 
headings 85.25 to 85.28, other 1.8 6.0 8 8  
852540 Still image video cameras and other video camera recorders; 
digital cameras 1.8 6.0 2 2  
870322 Motor cars, of a cylinder capacity exceeding 1,000 cc but not 
exceeding 1,500 cc 1.6 6.0 6 6  
870840 Gear boxes (transmissions) 1.4 6.0 5 1 4 
870899 Parts and accessories of motor vehicles of headings 87.01 to 
87.05, other 1.3 6.0 7 1 6 
890190 Other vessels for the transpor t of goods and other vessels for 
the transport of both persons and goods 1.2 3.0 3 3  
842952 Machinery with a 360° revolving superstructure 0.9 6.0 2 2  
870332 Motor cars, of a cylinder capacity exceeding 1,500 cc but not 
exceeding 2,500 cc 0.9 6.0 6 6  
854229 Electronic integrated circuits a nd microassemblies, other 0.9 6.0 1 1  
854140 Photosensitive semiconductor de vices, including photovoltaic 
cells whether or not assembled in modules or made up into 
panels; light emitting diodes 0.8 6.0 1 1  
840991 Parts suitable for use solely or principally with engines of 
heading 84.07 or 84.08, suitable for use solely or principally with spark-ignition internal  combustion piston engines 0.8 6.0 4 4  
890120 Tankers 0.8 2.0 1  1 
870333 Motor cars, of a cylinder capacity exceeding 2,500 cc 0.7 6.0 4 4  
870829 Parts and accessories of motor vehicles of headings 87.01 to 
87.05, other 0.6 6.0 8 1 7 
847160 Input or output units, whether or not containing storage units 
in the same housing 0.6 6.0 13 13  
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes 0.6 6.0 10 10  
381800 Chemical elements doped for use in electronics, in the form 
of discs, wafers or similar forms; chemical compounds doped 
for use in electronics. 0.5 6.0 1 1  
853400 Printed circuits. 0.5 6.0 1 1  
853690 Other apparatus 0.5 6.0 5 5  
271019 Petroleum oils, other 0.5 6.0 13 13  
Total of above 36.7  124 106 18 
 
Source: WTO Secretariat estimates based on data prov ided by Chile and UNSD, Comtrade data. WT/REG234/1 
Page 43 
 
 
  ANNEX II 
 
Tariff-Rate Quotas under the Agreement  
  
1. The various schemes for the maintenance of pr eferential tariff-rate quotas between the Parties 
are described in Tables AII.1 (Chile) and AII.2 (Japan) below.
1 
Table AII.1 
Chile: Tariff-rate quotas for products originating in Japan 
HS Code (description) In quota rate Out of quota 
rate Quantity 
Meat of bovine animals, frozen 
0202.2000, 0202.3010, 0202.3020, 
0202.3090 5.4% in 2007-08,  
4.8% in 2009-11 
Subject to consultation in 2011. 6% 1,300 metric tonnes (MT) in 2007 increasing 
annually by 650 MT until 2010. Annual increase of 750 MT in 2011.  Subject to negotiation in 2011. 
Meat and edible meat offal, of swine
 
0203.1900, 0203.2210, 0203.2220, 0203.2290, 0203.2910, 0203.2920, 0203.2930, 0203.2990, 0206.4910, 0206.4990 3% in 2007-2011 
Subject to consultation in 2011. 6% 32,000 MT in 2007, increasing annually by 
6,750 MT until 2010.  Annual increase of 
7,750 in 2011.  Subject to negotiation in 
2011. 
Preparations of meat, of swine 
1602.4100, 1602.4200, 1602.4900 3.6% in 2007-2011 
Subject to consultation in 2011. 6% 32,000 MT in 2007, increasing annually by 
6,750 MT until 2011.  Subject to negotiation 
in 2011. 
Edible meat offal, of bovine animals, frozen 
0206.2100, 0206.2200, 0206.2900 5.4% in 2007-08, 
3.6% in 2009-11 Subject to consultation in 2011. 6% 600 MT in 2007, increasing annually by 37 
MT until 2011.  Subject  to negotiation in 
2011. 
Cuts and offal of fowls of species Gallus Domesticus, frozen 
0207.1410, 0207.1421, 0207.1422 
0207.1423, 0207.1424, 0207.1429 0207.1430 19.6% in 2007-2008 (MFN rate 
minus 10% ), 15.3% in 2009-2011 (MFN rate minus 30%).  Subject to consultation in 2011. 21.8% 3,500 MT in 2007, increasing annually by 
500 MT until 2011.  Subject to negotiation in 2011. 
Tomato Paste 
2002.9011, 2002.9012, 2002.9019 0% 6% 3,700 MT for 2007, increasing annually by 
200 MT until 2010.  Annual increase of 700 MT in 2011.  Subject to negotiation in 2011. 
Source:  Annex 1, Part 3 of the Agreement. 
 
Table AII.2 
Japan: Tariff-rate quotas for products originating in Chile 
HS Code (description) In quota rate Out of quota 
ratea Quantity 
Meat of bovine animals, frozen 
020220000, 020230010, 020230020 020230030, 020230090 34.6% in 2007-08, 
30.8% in 2009-2011 Subject to consultation in 
2011. 38.5% 1,300 MT for 2007, increasing annually by 
650 MT until 2010.  Annual increase of 750 MT in 2011.  Subject to negotiation in 2011.  
Meat and edible meat offal, of swine 
020319021, 020319022, 020319023, 
020322021,  020322022, 020322023, 020329021,  020329022, 020329023 020649092,  020649093, 020649099  When the customs value (per 
kg) is not more than 53.53 
yen/kg, the in –quota rate shall be 482 yen/kg.  When the customs value (per kg) is more than 53.53 yen/kg, but 
not more than the value 
obtained by dividing 535.53 yen by 1.022, the in-quota  MFN rates 
vary 32,000 MT for 2007, increasing annually by 
6,750 MT until 2010.  Annual increase of 
7,750 MT in 2011.  Subject to negotiation in 2011.   
 rate shall be the difference 
between 535.53 yen/kg and the value for customs duty per kg.  When the customs value (per kg) is more than   
Table AII.2 (Cont'd)  
                                                      
1 For the purposes of implementing the TRQ, where th e first year is less than 12 months, the aggregate 
quota quantity for the first year (2007) is reduced to a pa rt of the aggregate quota quan tity that is proportional to 
the number of complete months remaining that year. WT/REG234/1 
Page 44  
 
  HS Code (description) In quota rate Out of quota 
ratea Quantity 
 the value obtained by 
dividing 535.53 yen by 
1.022, the in-quota rate shall 
be 2.2% of the customs value   
Preparations of meat, of swine  
160241011, 160241019, 160242011, 
160242019, 160249210, 160249220 When the customs value (per 
kg) is not more than the 
value obtained by dividing 577.15 yen by 0.643, the in-quota rate shall be the difference between 577.15 
yen/kg and the customs value 
per kg multiplied by 0.6. When the customs value (per kg) is more than the value obtained by dividing 577.15 
yen by 0.643, the in-quota 
rate shall be 4.3% of the customs value. Subject to consultation in 2011. MFN rates 
vary 32,000 MT for 2007, increasing annually by 
6,750 MT until 2010.  Annual increase of 
7,750 MT in 2011.  Subject to negotiation in 2011.
b   
Preparations of meat, of swine 
160241090, 160242090, 160249290  16%.  Subject to consultation 
in 2011 20% 32,000 MT for 2007, increasing annually by 
6,750 MT until 2010.  Annual increase of 
7,750 MT in 2011.  Subject to negotiation in 2011.
b  
Edible meat offal, of bovine 
animals, frozen 
020621000, 020622000, 020629010 
 11.5% in 2007-2008, 
7.6% in 2009-2011.  Subject 
to consultation in 2011. 12.8% 600 MT for 2007, increasing annually to 750 
MT in 2011.  Subject to consultation in 
2011.c  
Edible meat offal, of bovine animals, frozen
 
020629090  19.1% in 2007-2008, 
12.7% in 2009-2011.  
Subject to consultation in 
2011 21.3% 600 MT for 2007, increasing annually to 750 
MT in 2011.  Subject to consultation in 
2011.c   
Cuts and offal of fowls of species 
Gallus Domesticus, frozen 
020714220 10.7% in 2007-2008, 
8.5% in 2009-2011.  Subject 
to consultation in 2011. 11.9% 3,500 MT for 2007, increasing annually by 
500 MT until 2011.  Subject to consultation in 2011.   
Tomato puree and tomato paste 
200290219, 200290229  0% 16% 3,700 MT for 2007, increasing annually by 
200 MT until 2010.  Annual increase of 700 MT in 2011.  Subject to consultation in 2011.   
a  The out of quota rate is not set in the Agreement.  The curre nt MFN rate, which may be subject  to change, is indicated instea d. 
b  Meat and edible meat offal, of swine,  Preparations of meat, of swine (160241011, 160241019, 160242011, 160242019, 160249210,  
160249220) and Preparations of meat, of swine (160241090, 160242090, 160249290) share the common TRQ. 
c  Edible meat offal, of bovine animals, frozen (020621000, 020622 000, 020629010) and  Edible meat offal, of bovine animals, froze n 
(020629090) share the common TRQ. 
Source:  Annex 1, Part 2 of the Agreement. 
 
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