WORLD TRADE  
ORGANIZATION  WT/REG164/1/Add.1 
3 November 2005 
 (05-5169) 
Committee on Regional Trade Agreements 
 Original:   English/ 
 Spanish 
 
 
 
EC-CHILE INTERIM AGREEMENT 
 
Addendum  
 
 The following joint communication, dated 1 August 2005, is being circulated at the request of 
the Delegations of the European Communities and Chile.  
_______________ 
  
TITLE III:  TRADE IN SERVICES AND ESTABLISHMENT
∗ 
 
Article 94 
 
Objectives  
1. The Parties shall reciprocally liberalise trade in  services, in accordance with the provisions of 
this Title and in conformity with Article V of the GATS. 
2. The aim of Chapter III is the improvement of the investment environment, and in particular the 
conditions of establishment between the Parties, on the basis of the principl e of non-discrimination. 
 
CHAPTER I:  SERVICES 
 
SECTION 1:  GENERAL PROVISIONS 
 
Article 95 
 
Scope  
1. For the purposes of this Chapter, trade in service s is defined as the supply of a service through 
the following modes: 
(a) from the territory of a Party into the territory of the other Party (mode 1); 
(b) in the territory of a Party to the service consumer of the other Party (mode 2); 
(c) by a service supplier of a Party, through commercial presence in the territory of the 
other Party (mode 3); 
                                                      
∗ The Annex VII containing the schedule of specific commitments on Services (referred to in Article 99 
of the Association Agreement) has been submitted to th e Secretariat for consultation by interested Members.  
(office 1174). WT/REG164/1/Add.1 
Page 2  
 
 (d) by a service supplier of a Party, through presence of natural persons in the territory of 
the other Party (mode 4). 
2. This Chapter applies to trade in a ll service sectors with the exception of: 
(a) financial services, which is subject to Chapter II; 
(b) audio-visual services; 
(c) national maritime cabotage; and 
(d) air transport services, including domestic and international air transportation services, 
whether scheduled or non-scheduled, and services  directly related to the exercise of 
traffic rights, other than: 
(i) aircraft repair and maintenance services during which an aircraft is 
withdrawn from service; 
(ii) the selling and marketing of air transport services; and 
(iii) computer reservation system (CRS) services. 
3. Nothing in this Chapter shall be construe d to impose any obligation with respect to 
government procurement, which is s ubject to Title IV of this Part. 
4. The provisions of this Chapter shall not apply to subsidies granted by the Parties.  The Parties 
shall review the issue of disciplines on subsidies re lated to trade in services in the context of the 
review of this Chapter, as provided in Article 100, with a view to incorporating any disciplines agreed 
under Article XV of the GATS. 
5. This Section applies to international mar itime transport and telecommunication services 
subject to the provisions laid down in sections 2 and 3. 
Article 96 
 
Definitions
 
 For the purposes of this Chapter: 
 
(a) "measure"  means any measure by a Party, whethe r in the form of a law, regulation, 
rule, procedure, decision, administrative action, or any other form; 
(b) "measure adopted or maintained by a Party"  means measures taken by: 
(i) central, regional or local governments and authorities; and  
(ii) non-governmental bodies in the exercise of powers delegated by central, 
regional or local governments or authorities; 
(c) "service supplier"  means any legal or natural person that seeks to supply or supplies 
a service;  WT/REG164/1/Add.1 
 Page 3 
 
 
 (d) "commercial presence"  means any type of business or professional establishment, 
including through: 
(i) the constitution, acquisition or main tenance of a legal person, or 
(ii) the creation or maintenance of a branch or a representative office,  
  within the territory of a Party fo r the purpose of supplying a service; 
 
(e) "legal person"  means any legal entity duly constit uted or otherwise organised under 
applicable law, whether for profit or ot herwise, and whether privately-owned or 
governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;  
(f) "legal person of a Party"  means a legal person constituted or otherwise organised 
under the law of the Community or its Member States or of Chile. 
Should such a legal person have only its registered office or central administration in 
the territory of the Community or of Chile, it shall not be considered as a Community or a Chilean legal person respectively, unl ess it is engaged in substantive business 
operations in the territory of the Community or of Chile, respectively. 
 
(g) A "natural person"  means a national of one of the Member States or of Chile 
according to their respective legislation.  
Article  97 
 
Market Access
 
1. With respect to market access through the modes of  supply identified in Article 95, each Party 
shall accord services and service suppliers of the ot her Party treatment no less favourable than that 
provided for under the terms, limitations and conditi ons agreed and specified in its Schedule referred 
to in Article 99. 
2. In sectors where market-access commitments are undertaken, the measures which a Party 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in its Schedule, are defined as: 
(a) limitations on the number of services supp liers whether in the form of numerical 
quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test; 
(b) limitations on the total value of service transactions or assets in the form of numerical 
quotas or the requirement of  an economic needs test; 
(c) limitations on the total number of service ope rations or on the total quantity of service 
output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;
1 
(d) limitations on the total number of natura l persons that may be employed in a 
particular service sector or that a service supplier may employ and who are necessary 
                                                      
1 Paragraph 2(c) does not cover measures of a Pa rty which limit inputs for the supply of services. WT/REG164/1/Add.1 
Page 4  
 
 for, and directly related to, the supply of a specific service in the form of numerical 
quotas or a requirement of an economic needs test; 
(e) measures which restrict or require specific  types of legal entities or joint ventures 
through which a service supplier of the other Party may supply a service; and 
(f) limitations on the participation of forei gn capital in terms of maximum percentage 
limit on foreign shareholding or the total value of individual or aggregate foreign 
investment. 
Article 98 
 
National Treatment
 
1. In the sectors inscribed in its Schedule, and subj ect to the conditions and qualifications set out 
therein, each Party shall grant to services and service suppliers of the other Party, in respect of all 
measures affecting the supply of services, treatment no less favourable than that it accords to its own 
like services and services suppliers. 2 
2. A Party may meet the requirement of paragraph 1 by according to services and service 
suppliers of the other Party, either formally identical  treatment or formally different treatment to that 
it accords to its own like services and service suppliers. 
3. Formally identical or formally different treatment  shall be considered to be less favourable if 
it modifies the conditions of competition in favo ur of services or service suppliers of a Party 
compared to like services or service suppliers of the other Party.  
Article 99 
 
Schedule Of Specific Commitments
 
1. The specific commitments undertaken by each Party under Articles 97 and 98 are set out in 
the schedule included in Annex VII.  With respect to sectors where such co mmitments are undertaken, 
each Schedule specifies: 
(a) terms, limitations and conditions on market access; 
(b) conditions and qualificatio ns on national treatment; 
(c) undertakings relating to additional commi tments referred to in paragraph 3; 
(d) where appropriate, the time-frame for impl ementation of such commitments and the 
date of entry into force of such commitments. 
2. Measures inconsistent with both Articles 97 and 98 are inscribed in the column relating to 
Article 97.  In this case the inscription is consid ered to provide a condition or qualification to 
Article 98 as well. 
                                                      
2 Specific commitments assumed under this Article sh all not be construed to require the Parties to 
compensate for any inherent competitive disadvantages wh ich result from the foreign character of the relevant  
services or service suppliers.  WT/REG164/1/Add.1 
 Page 5 
 
 
 3. Where a Party undertakes specific commitments  on measures affecting trade in services not 
subject to scheduling under Articles 97 and 98, su ch commitments are inscribed in its Schedule as 
additional commitments. 
 
Article 100 
 
Review  
1. The Parties shall review this Chapter three years after the entry into force of this Agreement, 
with a view to further deepening liberalisation and reducing or eliminating remaining restrictions on a 
mutually advantageous basis and ensuring an  overall balance of rights and obligations.  
2. The Association Committee shall examine the ope ration of this Chapter every three years 
after the review undertaken under paragraph 1 and shall submit appropriate proposals to the 
Association Council. 
Article 101 
 
Movement Of Natural Persons  
 Two years after the entry into force of this Ag reement, the Parties shall review the rules and 
conditions applicable to movement  of natural persons (mode 4) w ith a view to achieving further 
liberalisation.  This review may also address the revision of the definition of natural person provided 
in Article 96(g).  
Article 102 
 
Domestic Regulation
 
1. In sectors where a Party has undertaken commitme nts in its Schedule, and with a view to 
ensuring that any measure relating to the requireme nts and procedures of licensing and certification of 
service suppliers of the other Party does not constitute  an unnecessary barrier to trade, that Party shall 
endeavour to ensure that any such measure: 
(a) is based on objective and transparent criteria, such as, inter alia , competence and the 
ability to provide the service; 
(b) is not more trade-restrictive than necessary  to ensure the achievement of a legitimate 
policy objective; 
(c) does not constitute a disguised restriction on the supply of a service. 
2. The disciplines of paragraph 1 may be reviewed  within the framework of the procedure of 
Article 100 in order to take into account the disci plines agreed under Article VI of the GATS with a 
view to their incorporation into this Agreement.  
3. Where a Party recognises, unilaterally or by ag reement, education, experience, licenses or 
certifications obtained in the territory of a third country, that Party shall afford the other Party an 
adequate opportunity to demonstrate that education,  experience, licenses or certifications obtained in 
the other Party's territory should also be recognised or to conclude an agr eement or arrangement of 
comparable effect. WT/REG164/1/Add.1 
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 4. The Parties shall consult periodically with a vi ew to determining the feasibility of removing 
any remaining citizenship or permanent residency requirement for the licensing or certification of 
each other's service suppliers. 
 
Article 103 
 
Mutual Recognition
 
1. Each Party shall ensure that its competent author ities, within a reasonable period of time after 
the submission by a services supplier of the other Party of an application for a licence or certification: 
(a) where the application is complete, make a determination on the application and 
inform the applicant of that determination; or 
(b) where the application is not complete, inform the applicant without undue delay of 
the status of the application and the additi onal information that is required under the 
Party's domestic law. 
2. The Parties shall encourage the relevant bodi es in their respective territories to provide 
recommendations on mutual recognition, for the pur pose of enabling service suppliers to fulfil, in 
whole or in part, the criteria applied by each Pa rty for the authorisation, licensing, accreditation, 
operation and certification of service suppliers and in particular professional services. 
3. The Association Committee, within a reasonable period of time and considering the level of 
correspondence of the respective regulations, shall decide whether a recommendation referred to in 
paragraph 2 is consistent with th is Chapter.  If that is the case, such a recommendation shall be 
implemented through an agreement on mutual reco gnition of requirements, qualifications, licences 
and other regulations to be negotiated by the competent authorities.  
4. Any such agreement shall be in conformity  with the relevant provisions of the 
WTO Agreement and, in particular, Article VII of the GATS. 
5. Where the Parties agree, each Party shall encourage its releva nt bodies to develop procedures 
for the temporary licensing of professional service suppliers of the other Party. 
6. The Association Committee shall periodically, and at least once every three years, review the 
implementation of this Article. 
Article 104 
 
Electronic Commerce3 
 The Parties, recognising that the use of electronic means increases trade opportunities in 
many sectors, agree to promote the development of  electronic commerce between them, in particular 
by cooperating on the market access and regulatory issues raised by electronic commerce.  
                                                     
 
3 The inclusion of this provision in  this Chapter is made without pr ejudice of the Chilean position on 
the question of whether or not electronic commerce sh ould be considered as a supply of services.   WT/REG164/1/Add.1 
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 Article 105 
 
Transparency  
 Each Party shall respond promptly to all requests by the other Party for specific information 
on any of its measures of general application or inte rnational agreements which pertain to or affect 
this Chapter.  The contact point referred to in Article 190 shall provide specific information on all 
such matters to service suppliers of the other Party upon request. Contact points need not be depositories of laws and regulations. 
 
 
SECTION 2:  INTERNATIONAL MARITIME TRANSPORT 
 
Article 106 
 
Scope
 
1. Notwithstanding Article 95(5), the provisions of  this section shall apply with respect to 
shipping companies established outside the Commun ity or Chile and controlled by nationals of a 
Member State or of Chile, respectively, if th eir vessels are registered in accordance with their 
respective legislation, in that Member State or in Ch ile and carry the flag of a Member State or Chile.  
2. This Article applies to international mar itime transport, including door-to-door and 
intermodal transport operations involving a sea-leg. 
Article 107 
 
Definitions  
 For the purposes of this section: 
 
(a) "intermodal transport operations " is defined as the right to arrange door-to-door 
transport services of international cargo and to this effect directly contract with providers of other modes of transport; 
(b) "international maritime service suppliers " covers the suppliers of services relating 
to international cargo for maritime servi ces, cargo handling, storage and warehousing 
services, customs clearance services, container station and depot services, agency 
services and freight forwarding services. 
Article 108 
 
Market Access And National Treatment
 
1. In view of the existing levels of liberalisati on between the Parties in international maritime 
transport: 
(a) the Parties shall continue to effectively a pply the principle of unrestricted access to 
the international maritime market and tr affic on a commercial and non-discriminatory 
basis; 
(b) each Party shall continue to grant to ships fl ying the flag of or operated by service 
suppliers of the other Party treatment no l ess favourable than that accorded to its own WT/REG164/1/Add.1 
Page 8  
 
 ships with regard to, inter alia , access to ports, use of infrastructure and auxiliary 
maritime services of the ports, and related fees and charges, customs facilities and the 
assignment of berths and facilities for loading and unloading.  
2. In applying the principles of paragraph 1, the Parties shall: 
(a) not introduce cargo-sharing clauses in future bilateral agreements with 
third countries, other than in those excep tional circumstances where liner shipping 
companies from the Party concerned w ould not otherwise have an effective 
opportunity to ply for trade to and from the third country concerned; 
(b) prohibit cargo-sharing arrangements in futu re bilateral agreements concerning dry 
and liquid bulk trade;  
(c) abolish, upon the entry into force of th is Agreement, all unilateral measures and 
administrative, technical and other barri ers which could have restrictive or 
discriminatory effects on the free supply of services in international maritime transport. 
3. Each Party shall permit international maritime se rvice suppliers of the other Party to have a 
commercial presence in its territory under cond itions of establishment and operation no less 
favourable than those accorded to its own service suppliers or tho se of any third country, whichever 
are the better, in accordance with the conditions inscribed in its Schedule. 
 
SECTION 3:  TELECOMMUNICATIONS SERVICES 
 
Article 109 
 
Definitions
 
 For the purposes of this section: 
 
(a) "telecommunications services"  means the transport of electro-magnetic signals - 
sound, data image and any combinati ons thereof, excluding broadcasting.4  Therefore, 
commitments in this sector do not cover th e economic activity consisting of content 
provision which require telecommunications services for its transport.  The provision of that content, transported via a telecommunications service, is subject to the specific commitments undertaken by the Parties in other relevant sectors. 
(b) a "regulatory authority"  means the body or bodies with any of the regulatory tasks 
assigned in relation to the issu es mentioned in this section. 
(c) "essential telecommunications facilities"  mean facilities of a public 
telecommunications transport network and service that: 
(i) are exclusively or predominantly provided by a single supplier or a limited 
number of suppliers; and 
                                                     
 
4 Broadcasting is defined as the uninterrupted chain of transmission required for the distribution of TV and radio 
programme signals to the general public, but does not cover contribution links between operators.  WT/REG164/1/Add.1 
 Page 9 
 
 
 (ii) cannot feasibly be economically or techni cally substituted in order to provide 
a service. 
 
Article 110 
 
Regulatory Authority  
1. Regulatory authorities for telecommunications services shall be separate from, and not 
accountable to, any supplier of basic telecommunications services. 
2. The decisions of and the procedures used by re gulatory authorities shall be impartial with 
respect to all market participants. 
3. A supplier affected by the decision of a regulatory authority shall have a right to appeal 
against that decision. 
Article 111 
 
Supply Of Services  
1. Where a licence is required, the terms and conditio ns for such a license shall be made publicly 
available and the period of time normally required to  reach a decision concerning an application for a 
licence shall be made publicly available. 
2. Where a licence is required, the reasons for the denial of a licence shall be made known to the 
applicant upon request.  
Article 112 
 
Major Suppliers
 
1. A major supplier is a supplier which has the ability to materially affect the terms of 
participation having regard to pr ice and supply in the relevant market for basic telecommunications 
services as a result of: 
(a) control over essential facilities; or 
(b) the use of its position in the market. 
2. Appropriate measures shall be maintained for th e purpose of preventing suppliers who, alone 
or together, are a major supplier from engaging  in or continuing anti-competitive practices. 
3. The anti-competitive practices referred to above shall include in particular: 
(a) engaging in anti-competitive cross-subsidisation;   
(b) using information obtained from compet itors with anti-competitive results; and 
(c) not making available to other services suppliers on a timely basis technical 
information about essential facilities and comm ercially relevant information which 
are necessary for them to supply services. 
 WT/REG164/1/Add.1 
Page 10  
 
 Article 113 
 
Interconnection
 
1. This section applies to linking with suppliers  providing public telecommunications transport 
networks or services in order to allow the users of  one supplier to communicate with users of another 
supplier and to access services provided by another supplier.  
2. Interconnection with a major supplier shall be en sured at any technically feasible point in the 
network.  Such interconn ection shall be provided: 
(a) under non-discriminatory terms, conditions  (including technical standards and 
specifications) and rates and of a quality no l ess favourable than that provided for its 
own like services or for like services of non-affiliated service suppliers or for its 
subsidiaries or other affiliates; 
(b) in a timely fashion, on terms, cond itions (including technical standards and 
specifications) and cost-oriented rates that ar e transparent, reasonable, having regard 
to economic feasibility, and sufficiently unbundl ed so that the supplier need not pay 
for network components or facilities that it does not require for the service to be 
provided;  and 
(c) upon request, at points in addition to the ne twork termination points offered to the 
majority of users, subject to charges that reflect the cost of construction of necessary additional facilities. 
4. The procedures applicable for interconnecti on to a major supplier shall be made publicly 
available. 
5. Major suppliers shall make interconnection agre ements available to service suppliers of the 
Parties to ensure non-discrimination, and/or shall publish reference interconnec tion offers in advance, 
unless they are already available to the public. 
Article 114 
 
Scarce Resources
 
 Any procedures for the allocation and use of s carce resources, including frequencies, numbers 
and rights of way, shall be carried out in an objective, timely, transparent and non-discriminatory 
manner. 
 
Article 115 
 
Universal Service  
1. Each Party has the right to define the kind of universal service obligation it wishes to 
maintain. 
2. The provisions governing universal service shall be transparent, objective and 
non-discriminatory.  They shall also be neutra l with respect to competition and be no more 
burdensome than necessary.    WT/REG164/1/Add.1 
 Page 11 
 
 
 CHAPTER II:  FINANCIAL SERVICES 
 
Article 116 
 
Scope  
1. This Chapter applies to measures adopted or ma intained by the Parties affecting trade in 
financial services. 
2. For the purposes of this Chapter, trade in fi nancial services is defined as the supply of a 
financial service through the following modes: 
(a) from the territory of a Party into the territory of the other Party (mode 1); 
(b) in the territory of a Party to the financ ial service consumer of the other Party 
(mode 2); 
(c) by a financial service supplier of a Party, through commercial presence in the 
territory of the other Party (mode 3); 
(d) by a financial service supplier of a Party, through presence of natural persons in the 
territory of the other Party (mode 4). 
3. Nothing in this Chapter shall be construe d to impose any obligation with respect to 
government procurement, which is s ubject to Title IV of this Part. 
4. The provisions of this Chapter shall not apply to subsidies granted by the Parties.  The Parties 
shall review the issue of disciplines on subsidies relate d to trade in financial services, with a view to 
incorporating in this Agreement any di sciplines agreed under Article XV of GATS. 
5. This Chapter does not apply to: 
(i) activities conducted by a central bank or monetary authority or by any other public 
entity in pursuit of monetary or exchange rate policies; 
(ii) activities forming part of a statutory system of social security or public retirement 
plans; and 
(iii) other activities conducted by a public entity for the account or with the guarantee or 
using the financial resources of the Government. 
6. For the purposes of paragraph 5, if a Party allows any of the activities referred to in 
paragraph 5(ii) or (iii) to be conducted by its fi nancial service suppliers in competition with a public 
entity or a financial service supplier, this  Chapter shall apply to such activities. 
Article 117 
 
Definitions  
 For the purposes of this Chapter: 
 
1. "measure"  means any measure by a Party, whether in  the form of a law, regulation, rule, 
procedure, decision, administrative action, or any other form; WT/REG164/1/Add.1 
Page 12  
 
 2. "measures adopted or maintained by a Party"  means measures taken by: 
 (i) central, regional or local governments and authorities; and  
(ii) non-governmental bodies in the exercise of powers delegated by central, regional or 
local governments or authorities; 
3. "financial service supplier" means any natural or legal person that seeks to supply or 
supplies financial services but the term "financial service supplier"  does not include a public entity; 
4. "public entity"  means: 
(i) a government, a central bank or a monetary au thority of a Party, or an entity owned or 
controlled by a Party, that is principa lly engaged in carrying out governmental 
functions or activities for governmental purposes, not including an entity principally 
engaged in supplying financial ser vices on commercial terms;  or 
(ii) a private entity, performing functions normally performed by a central bank or 
monetary authority, when exercising those functions; 
5. "commercial presence"  means any type of business or professional establishment, including 
through: 
 (i) the constitution, acquisition or maintenance of a legal person, or 
 (ii) the creation or maintenance of a branch or a representative office,   within the territory of a Party for the purpose of supplying a financial service; 
 6. "legal person"  means any legal entity duly constituted or otherwise organised under 
applicable law, whether for profit or otherwise,  and whether privately-owned or governmentally-
owned, including any corporation, tr ust, partnership, joint venture, sole proprietorship or association; 
7. "legal person of a Party"  means a legal person constituted or otherwise organised under the 
law of the Community or its Member States or of Chile. 
 Should such a legal person have only its regi stered office or central administration in the 
territory of the Community or Chile, it shall not be considered as a Community or a Chilean legal 
person respectively, unless it is engaged in substa ntive business operations in the territory of the 
Community or Chile, respectively. 
8. "natural person"  means a national of one of the Member States or of Chile according to 
their respective legislation. 
9. "financial service"  means any service of a financial nature offered by a financial service 
supplier of a Party.  Financial services comprise the following activities: 
Insurance and insurance-related services
 
 
(i) direct insurance (including co-insurance) 
  (A)  life 
  (B)  non-life  WT/REG164/1/Add.1 
 Page 13 
 
 
  
(ii) reinsurance and retrocession; 
 (iii) insurance intermediation, such as brokerage and agency; 
(iv) services auxiliary to insu rance, such as consultancy,  actuarial, risk assessment and 
claim settlement services. 
Banking and other financial services (excluding insurance ) 
 (v) acceptance of deposits and other repayable funds from the public; 
(vi) lending of all types, including consumer credit, mortgage credit, factoring and 
financing of commercial transactions; 
 (vii) financial leasing; 
(viii) all payment and money transmission ser vices, including credit, charge and debit 
cards, travellers cheques and bankers drafts; 
 (ix) guarantees and commitments; 
(x) trading for own account or for account of customers, whether on an exchange, in an 
over-the-counter market or otherwise, the following: 
  (A) money market instruments, including cheques, bills, certificates of deposits; 
   (B) foreign exchange;    (C) derivative products including, but not limited to, futures and options; 
  (D) exchange rate and interest rate inst ruments, including products such as swaps, 
   forward rate agreements; 
  (E) transferable securities; 
  (F) other negotiable instruments a nd financial assets , including bullion. 
 
(xi) participation in issues of all kinds of  securities, including underwriting and placement 
as agent (whether publicly or privately) and provision of services related to such issues; 
 (xii) money broking; 
 (xiii) asset management, such as cash or por tfolio management, all forms of collective 
 investment management, pension fund ma nagement, custodial, depository and trust 
 services; 
(xiv) settlement and clearing services for fina ncial assets, including securities, derivative 
 products, and other negotiable instruments; 
(xv) provision and transfer of financial in formation, and financial data processing and 
related software by suppliers of other financial services; 
(xvi) advisory, intermediation and other au xiliary financial services on all the activities 
listed in subparagraphs (v) through (xv), including credit reference and analysis, 
investment and portfolio research and advi ce, advice on acquisitions and on corporate 
restructuring and strategy. WT/REG164/1/Add.1 
Page 14  
 
 10. "new financial service"  means a service of a financial nature, including services related to 
existing and new products or the manner in which a product is delivered, that is not supplied by any 
financial service supplier in the territory of a Party but which is supplied in the territory of the other 
Party. 
 
Article 118 
 
Market Access
 
1. With respect to market access through the m odes of supply identified in Article 116, each 
Party shall accord financial services and financial servi ce suppliers of the other Party treatment no less 
favourable than that provided for under the terms, li mitations and conditions agreed and specified in 
its Schedule referred to in Article 120. 
2. In sectors where market-access commitments are undertaken, the measures which a Party 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in its Schedule, are defined as: 
(a) limitations on the number of financial servi ces suppliers whether in the form of 
numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test; 
(b) limitations on the total value of financial service transactions or assets in the form of  
numerical quotas or the requirement of an economic needs test; 
(c) limitations on the total number of financial service operations or on the total quantity 
of service output expressed in terms of designated numerical units in the form of 
quotas or the requirement of an economic needs test;
5 
(d) limitations on the total number of natura l persons that may be employed in a 
particular financial service sector or that a financial service supplier may employ and who are necessary for, and directly related to, the supply of a specific financial 
service in the form of numerical quotas or a requirement of an economic needs test; 
(e) measures which restrict or require specific  types of legal entities or joint ventures 
through which a financial service supplier of  the other Party may supply a financial 
service; and 
(f) limitations on the participation of forei gn capital in terms of maximum percentage 
limit on foreign shareholding or the total value of individual or aggregate foreign 
investment. 
Article 119 
 
National Treatment
 
1. In the sectors inscribed in its Schedule, and subj ect to the conditions and qualifications set out 
therein, each Party shall accord to financial service s and financial service suppliers of the other Party, 
                                                      
5Paragraph 2(c) does not cover measures of a Party wh ich limit inputs for the supply of financial services.  WT/REG164/1/Add.1 
 Page 15 
 
 
 in respect of all measures affecting the supply of financial services, treatment no less favourable than 
that it accords to its own like financia l services and financial service suppliers. 6 
2. A Party may meet the requirement of paragr aph 1 by according to financial services and 
financial service suppliers of the other Party, either formally identical treatment or formally different 
treatment to that it accords to its own like fi nancial services and fina ncial service suppliers. 
3. Formally identical or formally different treatment  shall be considered to be less favourable if 
it modifies the conditions of competition in favour of  financial services or financial service suppliers 
of a Party compared to like financial services or  financial service suppliers of the other Party. 
Article 120 
 
Schedule Of Specific Commitments  
1. The specific commitment undertaken by each Party under Articles 118 and 119 are set out in 
the Schedule included in Annex VIII.  With re spect to sectors where such commitments are 
undertaken, each Schedule specifies: 
(a) terms, limitations and conditions on market access; 
(b) conditions and qualificatio ns on national treatment; 
(c) undertakings relating to additional commi tments referred to in paragraph 3; 
(d) where appropriate the time-frame for impl ementation of such commitments and the 
date of entry into force of such commitments. 
2. Measures inconsistent with both Articles 118 and 119 are inscribed in the column relating to 
Article 118.  In this case, the inscription is cons idered to provide a cond ition or qualification to 
Article 119 as well. 
3. Where a Party undertakes specific commitments on measures affecting trade in financial 
services not subject to scheduling under Articles 118 a nd 119, such commitments are inscribed in its 
Schedule as additional commitments. 
Article 121 
 
New Financial Services  
1. A Party shall permit financial service suppliers of  the other Party established in its territory to 
offer in its territory any new financial service with in the scope of the subsectors and financial services 
committed in its Schedule and subject to the te rms, limitations, conditio ns and qualifications 
established in that Schedule and provided that the introduction of this new financial service does not 
require a new law or the modification of an existing law. 
2. A Party may determine the legal form throug h which the service may be provided and may 
require authorisation for the provision of the financia l service.  Where such authorisation is required, a 
                                                      
 6Specific commitments assumed under this Article shall not be construed to require the Parties to 
compensate for any inherent competitive disadvantages which result from the foreign character of the relevant 
financial services or financial service suppliers. WT/REG164/1/Add.1 
Page 16  
 
 decision shall be taken within a reasonable period of time and the authorisation may only be refused 
for prudential reasons. 
Article 122 
 
Data Processing In The Financial Services Sector
 
1. Each Party shall permit a financial service supplie r of the other Party to transfer information 
in electronic or other form, into and out of its te rritory, for data processing where such processing is 
required in the ordinary course of busin ess of such financial service supplier. 
2. Where the information referred to in paragraph 1 consists of or cont ains personal data, the 
transfer of such information from th e territory of one Party to the territory of the other Party shall take 
place in accordance with the domestic law regulating th e protection of individuals with respect to the 
transferring and processing of personal data of the Party out of whose territory the information is 
transferred. 
Article 123 
 
Effective And Transparent Regulation In The Financial Services Sector  
1. Each Party shall, to the extent practicable, pr ovide in advance to all interested persons any 
measure of general application that the Party pro poses to adopt in order to allow an opportunity for 
such persons to comment on the measure.  Such measure shall be provided: 
(a) by means of an official publication; or 
(b) in other written or electronic form. 
2. Each Party's appropriate financial authority sh all make available to interested persons its 
requirements for completing applications rela ting to the supply of financial services. 
3. On the request of an applicant, the appropriate financial authority shall inform the applicant of 
the status of its application.  If such authority requires additional information from the applicant, it 
shall notify the applicant without undue delay. 
4. Each Party shall make its best endeavours to implement and apply in its territory 
internationally agreed standards for regulation and s upervision in the financial services sector and for 
the fight against money laundering.  For this pur pose, the Parties shall cooperate and exchange 
information and experience within the Special Co mmittee on Financial Services referred to in 
Article 127.  
Article 124 
 
Confidential Information
 
 Nothing in this Chapter: 
 
(a) shall require any of the Parties to provide confidential information, the disclosure of 
which would impede law enforc ement, or otherwise be contrary to the public interest, 
or which would prejudice legitimate commerc ial interests of particular enterprises, 
public or private;  WT/REG164/1/Add.1 
 Page 17 
 
 
 (b) shall be construed to require a Party to di sclose information relating to the financial 
affairs and accounts of individual customers of financial service suppliers, or any 
confidential or proprietary information in the possession of public entities. 
Article 125 
 
Prudential Carve-Out  
 1. Nothing in this Chapter shall be construed to  prevent a Party from adopting or maintaining 
reasonable measures for prudential reasons, such as: 
(a) the protection of investors, depositors, fina ncial market participants, policy-holders, 
or persons to whom a fiduciary duty is  owed by a financial services supplier; 
(b) the maintenance of the safety, soundness, integrity or financial responsibility of 
financial services suppliers; and 
(c) ensuring the integrity and stability of a Party's financial system. 
2. Where such measures do not conform with the provi sions of this Chapter, they shall not be 
used as a means of avoiding the Party's co mmitments or obligations under the Chapter. 
Article 126 
 
Recognition
 
1. A Party may recognise prudential measures of the other Party in determining how the Party's 
measures relating to financial services shall be a pplied.  Such recognition, which may be achieved 
through harmonisation or otherwise, may be based upon an agreement or arrangement or may be 
accorded autonomously. 
2. A Party that is a party to an agreement or arrangement with a third party such as those 
referred to in paragraph 1, whether future or exis ting, shall afford adequate opportunity for the other 
Party to negotiate its accession to such agreements or arrangements, or to negotiate comparable ones 
with it, under circumstances in which there would be equivalent regulation,  oversight, implementation 
of such regulation, and, if appr opriate, procedures concerning the sh aring of information between the 
Parties to the agreement or arrangement.  Wher e a Party accords recognition autonomously, it shall 
afford adequate opportunity for the other Party to demonstrate that such circumstances exist. 
Article 127 
 
Special Committee On Financial Services  
1. The Parties hereby establish a Special Comm ittee on Financial Services.  The Special 
Committee shall be composed of representatives of th e Parties.  The principal representative of each 
Party shall be an official of the Party's authority r esponsible for financial services set out in Annex IX.  
2. The functions of the Special Committee shall include: 
(a) supervising the implementation of this Chapter; 
(b) considering issues regarding financial services that are referred to it by a Party. WT/REG164/1/Add.1 
Page 18  
 
 3. The Special Committee shall meet at the request of one of the Parties on a date and with an 
agenda agreed in advance by the Parties.  The o ffice of chairperson shall be held alternately.  
The Special Committee shall report to the Associ ation Committee the results of its meetings. 
4. Three years after the entry into force of this  Agreement the Special Committee on Financial 
Services shall consider actions with the aim of f acilitating and expanding trade in financial services 
and further contributing to the objectives of this Agreement, and shall report to the Association 
Committee. 
Article 128 
 
Consultations
 
1. A Party may request consultations with the other Party regarding any matter arising under this 
Chapter.  The other Party shall give sympathetic c onsideration to the request.  The Parties shall report 
the results of their consultations to th e Special Committee on Financial Services. 
2. Consultations under this Article shall include  officials of the authorities specified in 
Annex IX. 
3. Nothing in this Article shall be construed to  require financial authorities participating in 
consultations to disclose informa tion or take any action that w ould interfere with individual 
regulatory, supervisory, admini strative or enforcement matters. 
4. Where a financial authority of a Party re quires information for supervisory purposes 
concerning a financial service supplier in the other Party's territory, such financial authority may 
approach the competent financial authority in the ot her Party's territory to seek the information.  The 
provision of such information may be subject to the terms, conditions and lim itations contained in the 
other Party's relevant law or to the requirement of a prior agreement or arrangement between the 
respective financial authorities. 
Article 129 
 
Specific Provisions On Dispute Settlement  
1. Except as otherwise provided in this Article, a ny disputes under this Chapter shall be settled 
in accordance with the provisions of Title VIII. 
2. For the purpose of Article 184, consultations held under Article 128 shall be deemed to 
constitute the consultations referre d to in Article 183, unless the Pa rties otherwise agree.  Upon 
initiation of consultations, the Parties shall provide information to enable the examination of how a 
measure of a Party or any other matter may affect the operation and application of this Chapter, and 
give confidential treatment to the information exch anged during consultations.  If the matter has not 
been resolved within 45 days after holding the co nsultations under Article 128 or 90 days after the 
delivery of the request for consultations under Artic le 128(1), whichever is earlier, the complaining 
Party may request in writing the establishment of an  arbitration panel.  The Parties shall report the 
results of their consultations directly to the Association Committee. 
3. For the purpose of Article 185:  
(a) the chairperson of the arbitration pa nel shall be a financial expert;   WT/REG164/1/Add.1 
 Page 19 
 
 
 (b) the Association Committee shall, no later than six months after the entry into force of 
this Agreement, establish a list of at least five individuals who are not nationals of 
either Party, and who are willing and able to serve as arbitrators and be identified as chairperson of arbitration panels in fina ncial services.  The Association Committee 
shall ensure that the list always contains fi ve individuals at any point in time.  Those 
individuals shall have exper tise or experience in financial services law or practice, 
which may include the regulation of financ ial institutions, be independent, serve in 
their individual capacities and not be affilia ted with, nor take instructions from, any 
Party or organisation and shall comply with  the Code of Conduct set out in Annex 
XVI.  Such list may be amended every three years; 
(c) within three days of the request for est ablishment of the arbitration panel, the 
chairperson of the arbitration panel shall be  selected by lot by the chairperson of the 
Association Committee from the list referre d to in paragraph (b).  The other 
two arbitrators of the panel shall be selected by lot by the chairperson of the Association Committee from the list referre d to in Article 185(2), one among the 
individuals proposed to the Association Committee by the complaining Party, and the 
other among the individuals proposed to the Association Committee by the Party complained against. 
  
CHAPTER III:  ESTABLISHMENT 
 
Article 130 
 
Scope
 
 This Chapter shall apply to establishment in all sectors with the exception of all services sectors, 
including the financial services sector. 
 
Article 131 
 
Definitions  
 For the purposes of this Chapter: 
 
(a) "legal person"  means any legal entity duly constit uted or otherwise organised under 
applicable law, whether for profit or ot herwise, and whether privately-owned or 
governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association; 
(b) "legal person of a Party"  means a legal person constituted or otherwise organised 
under the law of the Community or its Member States or of Chile. 
 Should such a legal person have only its registered office or cent ral administration in the territory 
of the Community or of Chile, it shall not be  considered as a Community or a Chilean legal 
person respectively, unless it is engaged in substantive business operations in the territory of the Community or of Chile respectively. 
 
(c) "natural person"  means a national of one of the Member States or of Chile 
according to their respective legislation. 
(d) "establishment"  means: WT/REG164/1/Add.1 
Page 20  
 
 (i) the constitution, acquisition or main tenance of a legal person, or 
(ii) the creation or maintenance of a branch or a representative office, 
within the territory of a Party for the purpose of performing an economic activity. 
 
As regards natural persons, this shall not exte nd to seeking or taking employment in the labour 
market or confer a ri ght of access to the labour  market of a Party. 
 
Article 132 
 
National Treatment
 
 In the sectors inscribed in Annex X, and subj ect to any conditions and qualifications set out 
therein, with respect to establishmen t, each Party shall grant to lega l and natural persons of the other 
Party treatment no less favourable than that it accord s to its own legal and na tural persons performing 
a like economic activity.  
Article 133 
 
Right To Regulate
 
 Subject to the provisions of Article 132, each Party may regulate the establishment of legal 
and natural persons.  
Article 134 
 
Final Provisions
 
1. With respect to this Chapter,  the Parties confirm their rights and obligations existing under 
any bilateral or multilateral agreemen ts to which they are parties. 
2. With the objective of progressive liberalisati on of investment conditions, the Parties affirm 
their commitment to review the investment legal framework, the investment environment and the flow 
of investment between them consistent with their commitments in international investment 
agreements, no later than three years after the entry into force of this Agreement. 
 
CHAPTER IV:  EXCEPTIONS 
 
Article 135 
 
Exceptions  
1. Subject to the requirement that such measures are not applied in a manner which would 
constitute a means of arbitrary or unjustifiabl e discrimination between the Parties where like 
conditions prevail, or a disguised  restriction on trade in services, financial services or establishment, 
nothing in this Title shall be construed to preven t the adoption or enforcement by either Party of 
measures: 
(a) necessary to protect public morals or to ma intain public order and public security;  
(b) necessary to protect human, animal or plant life or health;  WT/REG164/1/Add.1 
 Page 21 
 
 
 (c) relating to the conservation of exhaustible  natural resources if such measures are 
applied in conjunction with restrictions on the domestic supply or consumption of 
services or on domestic investments; 
(d) necessary for the protection of national treasures of artistic, historic or archaeological 
value; 
(e) necessary to secure compliance with laws or regulations which are not inconsistent 
with the provisions of this Title including those relating to: 
(i) the prevention of deceptive and fraudulent practices or to deal with the effects 
of a default on services contracts; 
(ii) the protection of the privacy of indivi duals in relation to the processing and 
dissemination of personal data and th e protection of confidentiality of 
individual records and accounts; or 
(iii) safety. 
2. The provisions of this Title shall not apply to th e Parties' respective social security systems or 
to activities in the territory of each Party which ar e connected, even occasionally , with the exercise of 
official authority. 
3. Nothing in this Title shall prevent a Part y from applying its laws, regulations and 
requirements regarding entry and stay, work, labour  conditions, and establishm ent of natural persons 7 
provided that, in so doing, it does not apply to them in such a manner as to nullify or impair the benefits accruing to the other Party under the terms of a specific provision of this Title. 
__________ 
                                                     
 
7 In particular, a Party may require that natu ral persons must possess the necessary academic 
qualifications and/or professional experience specified in the territory where the service or financial service is 
supplied or the establishment is set-up, for the sector of activity concerned.