WORLD TRADE  
ORGANIZATION  WT/REG179/1 
20 December 2004 
 
 (04-5576) 
Committee on Regional Trade Agreements Original:   English 
 
  
FREE TRADE AGREEMENT BETWEEN 
THE EFTA STATES AND CHILE 
  
 
 The following joint communication, dated 3 December 2004, is being circulated at the request of the Delegations of the EFTA States (Iceland, Liechtenstein, Norway and Switzerland) and Chile.
* 
 
_______________ 
  
FREE TRADE AGREEMENT BETWEEN  
THE EFTA STATES AND THE REPUBLIC OF CHILE 
 
PREAMBLE 
 
 The Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the 
Swiss Confederation  (hereinafter referred to as “the EFTA States”), 
 
 and 
 
 The Republic of Chile (hereinafter referred to as “Chile”), 
 
 hereinafter collectively referred to  as “the Parties”, resolved to: 
 
 Strengthen the special bonds of friendship and co-operation between their nations; 
 
 Contribute  to the harmonious development and expansion of world trade by removing 
obstacles to trade and provide a catalys t to broader international cooperation; 
 
 Establish  clear and mutually advantageous rules governing their trade; 
 
 Create  an expanded and secure market for goods and services in their territories; 
 
 Ensure  a stable and predictable environment for business planning and investment; 
 
 Foster  creativity and innovation by protec ting intellectual property rights; 
  Build  on their respective rights and obligations under the Marrakech Agreement establishing 
the World Trade Organization and other multilatera l and bilateral instruments of co-operation; 
 
 Ensure  that the gains from trade liberalisation are not offset by the erection of private, anti-
competitive barriers; 
                                                     
 
* The complete text with annexes is available on the websites of EFTA ( http://www.efta.int ) and of 
Chile ( http://www.direcon.cl ). They are also available at the Secretariat (office 1174) for consultation by 
interested Members. WT/REG179/1 
Page 2  
 
 
 Enhance  the competitiveness of their firms in global markets; 
 
 Create  new employment opportunities and improve working conditions and living standards 
in their respective territories; 
 
 Promote  environmental protection and conservation, and sustainable development; 
 
 Reaffirming  their commitment to democracy, the rule  of law, human rights and fundamental 
freedoms in accordance with their obligations un der international law, including principles and 
objectives set out in the United Nations Charter and the Universal Declaration of Human Rights; and   
 Convinced  that this Agreement will create conditions encouraging economic, trade and 
investment relations between them; 
 
 Have Agreed , in pursuit of the above, to conclude the following Agreement (hereinafter 
referred to as “this Agreement”): 
 
 
CHAPTER I : INITIAL PROVISIONS 
 
Article 1 
 
Establishment Of A Free Trade Area
 
 
 The EFTA States and Chile hereby establish a free trade area by means of this Agreement and 
the complementary agreements on trade in agricultu ral goods, concurrently concluded between Chile 
and each individual EFTA State. 
 
Article 2 
 
Objectives  
 
1. The objectives of this Agreement, as elaborated  more specifically through its principles and 
rules, are to: 
(a) achieve the progressive and r eciprocal liberalisation of trade in goods, in conformity 
with Article XXIV of the General Agreement on Tariffs and Trade (hereinafter 
referred to as “the GATT 1994”); 
(b) achieve the liberalisation of trade in servic es, in conformity with Article V of the 
General Agreement on Trade in Services (hereinafter referred to as “the GATS”); 
(c) open the government procurement markets of the Parties; 
(d) promote conditions of fair comp etition in the free trade area; 
(e) substantially increase investment opportunities in the free trade area; 
(f) provide adequate and effective protection and enforcement of intellectual property 
rights; and 
(g) establish a framework for further bilatera l and multilateral cooperation to expand and 
enhance the benefits of this Agreement.  WT/REG179/1 
 Page 3 
 
 
Article 3 
 
Territorial Application  
 
1. Without prejudice to Annex I, this Agreement shall apply to the territory of each Party, as 
well as to areas beyond the territory in which each Pa rty may exercise sovereign rights or jurisdiction 
in accordance with international law. 
2. Annex II shall apply with respect to Norway. 
Article 4 
 
Relation To Other International Agreements  
 
 The Parties confirm their rights and obligations  under the Marrakech Agreement establishing 
the World Trade Organization and the other agreements  negotiated thereunder (her einafter referred to 
as “the WTO Agreement”) to which they are party, and under any other international agreement to which they are a party.  
Article 5 
 
Trade And Economic Relations Governed By This Agreement
 
 1. The provisions of this Agreement apply to th e trade and economic relations between, on the 
one side, the individual EFTA States and, on the other side, Chile, but not to the trade relations 
between individual EFTA States, unless othe rwise provided for in this Agreement. 
2. As a result of the customs union established by the Treaty of 29 March 1923 between 
Switzerland and the Principality of  Liechtenstein, Switzerland sha ll represent the Principality of 
Liechtenstein in matters covered thereby. 
Article 6 
 
Regional And Local Governments
 
 
 Each Party is fully responsible for the observance of all obligations and commitments under 
this Agreement and shall ensure their observance by  its respective regional and local governments and 
authorities and by non-governmental bodies in the exercise of governmental powers delegated by 
central, regional and local governments or authorities within its territory. 
 
 
CHAPTER II : TRADE IN GOODS 
 
Article 7 
 
Coverage  
  This Chapter applies to trade between the Parties relating to: 
 
(a) products falling within chapters 25 th rough 97 of the Harmonized Commodity 
Description and Coding System (hereinafter referred to as “the HS”), excluding the 
products listed in Annex III; WT/REG179/1 
Page 4  
 
(b) products specified in Annex IV, with due re gard to the arrangements provided for in 
that Annex; and 
(c) fish and other marine products as provided for in Annex V. 
Article 8 
 
Rules Of Origin And Administrative Co-Operation
 
 
1. The provisions on rules of origin and administ rative co-operation applicable to Article 9(1) 
and Article 19 are set out in Annex I. 
2. For the purpose of Article 9(2), Article 13(1) and Article 18, the term “goods of a Party” shall 
mean domestic goods as understood within the meaning of GATT 1994 or such goods as the Parties 
may agree, and shall include originating products of that Party. 
Article 9 
 
Elimination Of Customs Duties  
 
1. The Parties shall, on the date of  entry into force of this Agreement, abolish all customs duties 
on imports of products originating in an EFTA Stat e or in Chile, except as provided for in Annex VI. 
2. The Parties shall, on the date of  entry into force of this Agreement, abolish all customs duties 
on exports of goods of a Party in trade between the Parties. 
3. No new customs duty shall be introduced nor sha ll those already applied be increased in trade 
between the EFTA States and Chile. 
Article 10 
 
Customs Duty  
 
 A customs duty includes any duty or charge of any kind imposed in connection with the 
importation or exportation of a product, including any form of surtax or surcharge in connection with such importation or exportation, but does not include any: 
 
(a) charge equivalent to an internal tax imposed consistently with Article 15; 
(b) anti-dumping or countervailing duty applied consistently with Article 18; or 
(c) fee or other charge imposed consistently with Article 11. 
Article 11 
 
Fees And Other Charges
 
  Fees and other charges referred to in Article  10(c) shall be limited in amount to the 
approximate cost of services rendered and shall not  represent an indirect protection for domestic 
products or a taxation of imports or exports for fiscal purposes. 
  WT/REG179/1 
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Article 12 
 
Basic Duties  
 
1. For each product the basic duty, to which the successive reductions set out in Annex VI are to 
be applied, shall be the most-favoured nation rate of duty applied on 1 January 2003. 
2. If, before, by or after entry into force of this Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular reductions in accordan ce with commitments resulting from multilateral 
negotiations under the World Trade Organization (hereinafter referred to as “the WTO”), such 
reduced duties shall replace the basic duties referred to in paragraph 1 as from the date when such 
reductions are applied, or from the entry into force of this Agreemen t if this is later. 
3. The reduced duties calculated in accordance with Annex VI shall be applied rounded to the 
first decimal place or, in case of specific duties, to the second decimal place. 
Article 13 
 
Import And Export Restrictions  
 
1. On the date of entry into force of this Agreement, all import or export prohibitions or 
restrictions on trade in goods of a Party between the EFTA States and Chile, other than customs duties 
and taxes, whether made effective through quotas, im port or export licenses or other measures, shall 
be eliminated, except as provided for in Annex VII. 
2. No new measures as referred to in  paragraph 1 sha ll be introduced. 
Article 14 
 
Classification Of Goods And Customs Valuation  
 
1. The classification of goods in trade between the EFTA States and Chile sh all be determined in 
accordance with each Party's respective tariff nomenclature in conformity with the HS. 
2. The WTO Agreement on Implementation of Ar ticle VII of the GATT 1994 shall govern 
customs valuation rules applied to trad e between the EFTA States and Chile. 
Article 15 
 
National Treatment  
 
 The Parties shall apply national treatment in accordance with Article III of the GATT 1994, 
including its interpretative notes, which is hereby in corporated into and made part of this Agreement. 
 
Article 16 
 
Sanitary And Phytosanitary Measures  
 
1. The rights and obligations of the Parties in respect of sanitary and phytosanitary measures 
shall be governed by the WTO Agreement on the A pplication of Sanitary and Phytosanitary Measures 
(hereinafter referred to as “the SPS Agreement”).  WT/REG179/1 
Page 6  
 
2. The Parties shall strengthen their co-operation in the field of sanitary and phytosanitary 
measures, with a view to increasing the mutual  understanding of their respective systems and 
facilitating access to their respective markets. 
3. At the request of a Party, expert consultations shall be convened if any Party considers that 
another Party has taken measures which are likely to affect, or have affected, access to its market. 
Such experts, representing the Parties concerned on specific issues in the field of sanitary and 
phytosanitary matters, shall aim at finding an appropriate solution in conformity with the SPS 
Agreement. 
4. The Parties shall exchange names and addresses of “contact points” with sanitary and 
phytosanitary expertise in order to facilitate communication and the exchange of information. 
5. In order to permit the efficient use of resources, the Parties shall, to the extent possible, 
endeavour to use modern technological means of communication, such as electronic communication, 
video or telephone conference, or arrange for meetin gs referred to in paragraph 3 to take place back-
to-back with Joint Committee meetings or with sani tary and phytosanitary meetings in the framework 
of the WTO. The results of expert consultations convened in accordance with paragraph 3 shall be 
reported to the Joint Committee. 
6. Chile and any of the EFTA States may, for better implementation of this Article, develop 
bilateral arrangements includi ng agreements between their respective regulatory agencies. 
  Article 17  
 
Technical Regulations
 
 
1. The rights and obligations of the Parties in respect of technical regulations, standards and 
conformity assessment shall be governed by the WTO Agreement on Technical Barriers to Trade 
(hereinafter referred to as “the TBT Agreement”). 
2. The Parties shall strengthen their co-operation in  the field of technical regulations, standards 
and conformity assessment, with a view to incr easing the mutual understanding of their respective 
systems and facilitating access to their respective markets. 
3. Without prejudice to paragraph 1, the Parties agree to hold consultations in the framework of 
the Joint Committee where a Party considers that another Party has taken measures which are likely to 
create, or have created, an obstacle to trade, in order to find an appropriate solution in conformity with 
the TBT Agreement. 
Article 18 
 
Anti-Dumping And Countervailing Measures  
 
1. A Party shall not apply anti-dumping measures as provided for under the WTO Agreement on 
Implementation of Article VI of the GATT 1994 in relation to goods of a Party. 
2. The Parties recognise that the effective implementation of competition rules may address 
economic causes leading to dumping. 
3. The rights and obligations of the Parties related to countervailing measures shall be governed 
by the WTO Agreement on Subsidies and Countervailing Measures.  WT/REG179/1 
 Page 7 
 
 
Article 19 
 
Emergency Action On Imports Of Particular Products  
 
1. Where any product originating in a Party, as a result of the reduction or elimination of a 
customs duty under this Agreement, is being import ed into the territory of another Party in such 
increased quantities and under such conditions as to constitute a substantial cause of serious injury or 
threat thereof to the domestic industry of like or directly competitive products in the territory of the 
importing Party, the importing Party may take emergency measures to the minimum extent necessary 
to remedy or prevent the injury. 
2. Such measures may consist in: 
(a) suspending the further reduction of any rate of duty provided for under this 
Agreement on the product; or 
(b) increasing the rate of duty on the product to a level not to ex ceed the lesser of: 
(i) the most-favoured nation rate of duty in effect at the time the action is taken; 
(ii) the most-favoured nation rate of duty in effect on the day immediately 
preceding the date of the entry into force of this Agreement. 
3. Emergency measures shall be taken for a period not exceeding one year. In very exceptional 
circumstances, after review by the Joint Committee, measures may be taken up to a total maximum 
period of three years. In this case, the Party taking such measures shall present a schedule leading to 
their progressive elimination. No measures shall be applied to the import of a product which has 
previously been subject to such a measure for a period of, at least, five years since the expiry of the measure. 
4. Emergency measures shall only be taken upon clear evidence that increased imports have 
caused or are threatening to cause serious injury pu rsuant to an investigation in accordance with the 
procedures laid down in the WTO Agreement on Safeguards. 
5. The Party intending to take emergency measures  under this Article shall promptly make a 
notification to the other Parties, containing all pe rtinent information which shall include evidence of 
serious injury caused by increased imports, precise description of the product involved, the proposed 
measure, the proposed date of introduction and exp ected duration of the measures. Any Party that may 
be affected shall simultaneously be offered compensa tion in the form of substantially equivalent trade 
liberalisation in relation to th e imports from any such Party. 
6. The Joint Committee shall, within 30 days from th e date of notification to  the Parties, meet to 
examine the information provided under paragraph 5 in order to facilitate a mutually acceptable 
solution of the matter. In the absence of such solution, the importing Party may adopt a measure pursuant to paragraph 2 to remedy the problem, and,  in the absence of mutually agreed compensation, 
the Party against whose product the measure is ta ken may take retaliatory  action. The emergency 
measure and any compensatory or retaliatory ac tion shall be immediately notified to the Joint 
Committee. The retaliatory action shall consist of th e suspension of concession s having substantially 
equivalent trade effects or conce ssions substantially equivalent to the value of the additional duties 
expected to result from the emergency action. In the selection of the emergency measure and the 
retaliatory action, priority must be given to the action which least disturbs the functioning of this 
Agreement. WT/REG179/1 
Page 8  
 
7. In critical circumstances where delay would caus e damage which would be difficult to repair, 
a Party may take a provisional emergency measure not  exceeding 120 days pursuant to a preliminary 
determination that there is clear evidence that increased imports have caused or are threatening to 
cause serious injury. The Party intending to take such a measure shall immediately notify the other 
Parties thereof and, within 30 days of the date of su ch notification, the pertin ent procedures set out in 
paragraphs 5 and 6, including fo r compensatory and re taliatory action, shall be initiated. Any 
compensation shall be based on the total period of application of the provisional measure. The period 
of application of any such provisional measure shall be counted as part of the duration of the 
definitive measure and any extension thereof. 
Article 20 
 
Global Safeguard
 
 
 The Parties confirm their rights and obliga tions under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards.  
Article 21 
 
General Exceptions
 
 
 Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable di scrimination of a Party where the same conditions 
prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed 
to prevent the adoption or enforcement by any Party of measures: 
 
(a) necessary to protect public morals; 
(b) necessary to protect human, animal or plant life or health; 
(c) relating to the importations or exportations of gold and silver; 
(d) necessary to secure compliance with laws or regulations which are not inconsistent 
with the provisions of this Agreemen t, including those relating to customs 
enforcement, the protection of intellectual property rights, and the prevention of 
deceptive practices; 
(e) relating to the products of prison labour; 
(f) imposed for the protections of national treasures of artistic, historic or archaeological 
value; 
(g) relating to the conservation of exhaustible natural resources if such measures are 
made effective in conjunction with re strictions on domestic production or 
consumption; 
(h) undertaken in pursuance of obligations under any intergovernmental commodity 
agreement which conforms to criteria submitted to the WTO and not disapproved by 
it or which is itself so submitted and not so disapproved; 
(i) involving restrictions on exports of domestic  materials necessary to ensure essential 
quantities of such materials to a domestic processing industry during periods when 
the domestic price of such materials is held below the world price as part of a governmental stabilization plan; provided that such restrictions shall not operate to  WT/REG179/1 
 Page 9 
 
 
increase the exports of or the protection afforded to such domestic industry, and shall 
not depart from the provisions of this Agreement relating to non-discrimination; 
(j) essential to the acquisition or distribution of products in general or local short supply; 
provided that any such measures shall be consistent with the principle that all WTO 
members are entitled to an equitable share of the international supply of such 
products, and that any such measures, which are inconsistent with the other 
provisions of this Agreement shall be discontinued as soon as the conditions giving 
rise to them have ceased to exist. 
 
CHAPTER III : TRADE IN SERVICES AND ESTABLISHMENT 
 
SECTION I – TRADE IN SERVICES 
 
Article 22 
 
Coverage  
 
1. This Section applies to measures  affecting trade in services taken by central, regional or local 
governments and authorities as well as by non-governmental bodies in the exercise of powers 
delegated by central, regional or local governments or authorities. 
2. This Section applies to measures affecting trade in all services sectors with the exception of 
air services, including domestic and international air transportation services, whether scheduled or 
non-scheduled, and related services in support of air services, other than: 
(a) aircraft repair and maintenance services; 
(b) the selling and marketing of air transport services; 
(c) computer reservation system (CRS) services.1 
3. Nothing in this Section shall be construed to impose any obligation with respect to 
government procurement, which is subject to the Chapter V. 
Article 23 
 
Definitions  
  For the purposes of this Section:  
(a) “trade in services” is defined as the supply of a service: 
(i) from the territory of a Party into the territory of another Party (mode 1); 
(ii) in the territory of a Party to the serv ice consumer of anot her Party (mode 2); 
(iii) by a service supplier of a Party, through commercial presence in the territory 
of another Party (mode 3); 
                                                     
 
1 The terms “aircraft repair and maintenance services”, “selling and marketing of air transport services” 
and “computer reservation system (CRS) services” are as defined in paragraph 6 of the Annex on Air Transport 
Services to the GATS. WT/REG179/1 
Page 10  
 
(iv) by a service supplier of a Party, through presence of natural persons in the 
territory of another Party (mode 4). 
(b) “measure” means any measure by a Party, wh ether in the form of a law, regulation, 
rule, procedure, decision, administrative action or any other form; 
(c) “supply of a service” includes the production, distribution, marketing, sale and 
delivery of a service; 
(d) “measures by a Party affecting trade in services” include measures in respect of: 
(i) the purchase, payment or use of a service; 
(ii) the access to and use of, in connection with the supply of a service, services 
which are required by that Party to be offered to the public generally; 
(iii) the presence, including commercial presence, of persons of another Party for 
the supply of a service in the territory of that Party; 
(e) “commercial presence” means any type of business or professional establishment, 
including through: 
(i) the constitution, acquisition or maintenance of a juridical 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 service; 
(f) “service supplier” means any person that  seeks to supply or supplies a service;
2 
(g) “natural person of a Party” is, in accorda nce with its legislation, a national or a 
permanent resident of that Party if he or she is accorded substantially the same 
treatment as nationals in respect of measures affecting trade in services; 
(h) “juridical 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, trust, partnership, joint venture, 
sole proprietorship or association; 
(i) “services” includes any service in any sector  except services supplied in the exercise 
of governmental authority; 
(j) “juridical person of a Party” means a juridical person which is either: 
(i) constituted or otherwise organised under the law of Chile or an EFTA State, 
and that is engaged in substantive business operations in Chile or in the 
EFTA State concerned, or 
                                                      
2 Where the service is not supplied directly by a juridical person but through other forms of commercial 
presence such as a branch or a representative office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers under this 
Agreement. Such treatment shall be extended to the presence through which the service is supplied and need not 
be extended to any other parts of the supplier located outside the territory where the service is supplied.  WT/REG179/1 
 Page 11 
 
 
(ii) in the case of the supply of a service through commercial presence, owned or 
controlled by: 
   (A) natural persons of that Party; or 
 
   (B) juridical persons identified under paragraph (j)(i); and 
 
(k) “a service supplied in the exercise of governmental authority” means any service 
which is supplied neither on a commercial basis nor in competition with one or more 
service suppliers. 
Article 24 
 
Most-Favoured Nation Treatment  
 
1. The rights and obligations of the Parties with respect to most-favoured nation treatment shall 
be governed by the GATS. 
2. If a Party enters into an agreement with a non- Party which has been notified under Article V 
of the GATS, it shall, upon request from another Party, afford adequate opportunity to the other 
Parties to negotiate, on a mutually advantageo us basis, the benefits granted therein. 
Article 25 
 
Market Access  
 
1. With respect to market access through the modes of supply identified in Article 23, each Party 
shall accord services and service suppliers of a nother Party treatment no less favourable than that 
provided for under the terms, limitations and condit ions agreed and specified in its Schedule referred 
to in Article 27. 
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 service 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 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 op erations or on the total quantity of service 
output expressed in the terms of designated numerical units in the form of quotas or 
the requirement of an economic needs test.3 
(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 
for, and directly related to, the supply of a specific serv ice 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 another Party may supply a service; and 
                                                      
3 Subparagraph (c) does not cover measures of a Party which limit inputs for the supply of services. WT/REG179/1 
Page 12  
 
(f) limitations on the participation of foreig n capital in terms of maximum percentage 
limit on foreign shareholding or the total value of individual or aggregate foreign 
investment. 
  Article 26  
 
National Treatment
 
 
1. In the sectors inscribed in its Schedule referred  to in Article 27 and subject to the conditions 
and qualifications set out therein, each Party shall grant to services and services suppliers of another 
Party, in respect of all measures affecting the su pply of services, treatment no less favourable than 
that it accords to its own like services and services suppliers.4 
2. A Party may meet the requirement of paragraph 1 by according to services and service 
suppliers of another 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 favour  of services or service suppliers of the Party 
compared to like services or service suppliers of another Party. 
Article 27 
 
Trade Liberalisation  
 
1. The Schedule of specific commitments that each Party undertakes under Articles 25 and 26 as 
well as paragraph 3 of this Article is set out at  Annex VIII. With respect to sectors where such 
commitments are undertaken, each Schedule specifies: 
(a) terms, limitations and conditions on market access; 
(b) conditions and qualifications on national treatment; 
(c) undertakings relating to additional commitments referred to in paragraph 3; and 
(d) where appropriate, the time-frame for implementation of such commitments and the 
date of entry into force of such commitments. 
2. Measures inconsistent with both Articles 25 and 26 are inscribed in the column relating to 
Article 25. In this case, the inscription is consider ed to provide a condition or qualification to Article 
26 as well. 
3. Where a Party undertakes a specific commitment on measures affecting trade in services not 
subject to scheduling under Articles 25 and 26, incl uding those regarding qualifications, standards or 
licensing matters, such commitments are inscribed in its Schedule as additional commitments. 
4. The Parties undertake to review their Schedules of specific commitments at least every three 
years, or more frequently, with a view to provide for a reduction or elimination of substantially all 
remaining discrimination between the Parties with rega rd to trade in services covered in this Section 
on a mutually advantageous basis and ensuring  an overall balance of rights and obligations. 
                                                      
4 Specific commitments assumed under this Article shall not be construed to require the Parties to 
compensate for any inherent competitive disadvantage which result from the foreign character of the relevant 
services and service suppliers.  WT/REG179/1 
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Article 28 
 
Domestic Regulation  
 
1. In sectors where specific commitments are undertaken, each Party shall ensure that all 
measures of general application affecting trade in se rvices are administered in a reasonable, objective 
and impartial manner. 
2. Each Party shall maintain or ins titute as soon as practicable judicial, arbitral or administrative 
tribunals or procedures which provid e, at the request of an affected service supplier of another Party, 
for the prompt review of, and where justified, ap propriate remedies for, administrative decisions 
affecting trade in services. Where such procedures are not independent of the agency entrusted with 
the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an 
objective and impartial review. 
3. Where authorisation is required for the supply of a service, the comp etent authorities of a 
Party shall promptly, after the submission of an a pplication is considered complete under domestic 
laws and regulations, inform the applicant of the deci sion concerning the applica tion. At the request of 
the applicant, the competent author ities of the Party shall provide, without undue delay, information 
concerning the status of the application. 
4. The Parties shall jointly review the results of the negotiations on disciplines for measures 
relating to qualification requirements and procedur es, technical standards and licensing requirements 
pursuant to Article VI.4 of the GATS aiming to ensure that such measure do not constitute 
unnecessary barriers to trade in services, with a view  to their incorporation into this Agreement. The 
Parties note that such disciplines aim to ensure that such requirements are, inter alia : 
(a) based on objective and transparent criteria, such as competence and the ability to 
supply the service; 
(b) not more burdensome than necessary to  ensure the quality of the service; 
(c) in the case of licensing proc edures, not in themselves a restriction on the supply of 
the service. 
5. In sectors in which a Party has undertaken sp ecific commitments, until the incorporation of 
disciplines developed pursuant to paragraph 4, a Party shall not apply li censing and qualification 
requirements and technical standards in a manner which: 
(a) does not comply with the criteria outlined in paragraphs 4 (a), (b) or (c); and 
(b) could not reasonably have been expected of th at Party at the time of the conclusion of 
the negotiation of the present agreement. 
6. Whenever a domestic regulation is prepared, adopted and applied in accordance with 
international standards applied by both Parties, it shall be rebuttably presumed to comply with the 
provisions of this Article. 
7. Each Party shall provide for adequate procedures to verify the competence of professionals of 
another Party. WT/REG179/1 
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Article 29 
 
Recognition
 
 
1. The Parties shall encourage the relevant bodies in their respective territories to provide 
recommendations on mutual recognition, for the purpose of the fulfilment, in whole or in part, by 
service suppliers of the criteria applied by each Party for the authorisation, licensing, accreditation, 
operation and certification of se rvice suppliers and, in partic ular, professional services. 
2. The Joint Committee, within a reasonable pe riod of time and considering the level of 
correspondence of the respective regulations, shall de cide whether a recommendation referred to in 
paragraph 1 is consistent with th is Section. If that is the case, such a recommendation shall be 
implemented through an agreement on mutual re quirements, qualifications, licences and other 
regulations to be negotiated by the competent authorities. 
3. Any such agreement shall be in conformity with the relevant provisions of the WTO 
Agreement and, in particular, Article VII of the GATS. 
4. Where the Parties agree, each Party shall encourage its relevant bodies to develop procedures 
for the temporary licensing of professiona l services suppliers of another Party. 
5. The Joint Committee shall periodically, and at  least once every three years, review the 
implementation of this Article. 
6. Where a Party recognises, by agreement or arrangement, the education or experience 
obtained, requirements met or licenses or certificatio ns granted in the territory of a non-Party, that 
Party shall accord another Party, upon request, adequa te opportunity to negotiate its accession to such 
an agreement or arrangement or to negotiate comparable ones with it. Where a Party accords recognition autonomously, it shall afford adequate op portunity for another Party to demonstrate that 
the education or experience obtained, requirements met or licenses or certifications granted in the 
territory of that other Party should also be recognised. 
Article 30 
 
Movement Of Natural Persons
 
 
1. This Section applies to measures affecting na tural persons who are service suppliers of a 
Party, and natural persons of a Party who are employed  by a service supplier of a Party, in respect of 
the supply of a service. Natural persons covered by  a Party’s specific commitments shall be allowed 
to supply the service in accordance with the terms of those commitments. 
2. This Section shall not apply to measures af fecting natural persons seeking access to the 
employment market of a Party, nor shall it apply to measures regarding nationality, residence or 
employment on a permanent basis. 
3. This Section shall not prevent a Party from appl ying measures to regulate the entry of natural 
persons of another Party into, or their temporary stay in, its territory, including those measures 
necessary to protect the integrity of, and to ensure  the orderly movement of natural persons across its 
borders, provided that such measures are not applied in a manner so as to nullify or impair the benefits 
accruing to a Party under the terms of a specific commitment.5 
                                                      
5 The sole fact of requiring a visa shall not be regarded as nullifying or impairing benefits under a 
specific commitment.  WT/REG179/1 
 Page 15 
 
 
Article 31 
 
Telecommunications Services  
 
 Specific provisions on telecommunicati ons services are set out in Annex IX. 
 
 
SECTION II – ESTABLISHMENT 
 
Article 32 
 
Coverage  
 
 This Section shall apply to establishment in a ll sectors, with the exception of establishment in 
services sectors. 
 
Article 33 
 
Definitions  
 
 For the purposes of this Section,  
(a) "juridical 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, trust, partnership, joint venture, 
sole proprietorship or association; 
(b) "juridical person of a Party" means a juridical person constituted or otherwise 
organised under the law of an EFTA State or of Chile and that is engaged in substantive business operations in Chile  or in the EFTA State concerned; 
(c) "natural person" means a national of an EFTA State or of Chile according to their 
respective legislation; 
(d) "establishment" means: 
(i) the constitution, acquisition or maintenance of a juridical person, or 
(ii) the creation or maintenance of a br anch or a representative office,  
within the territory of a Party for the purp ose of performing an economic activity. 
 As regards natural persons, th is shall not extend to seeking or taking employment in the 
labour market or confer a right of access to the labour market of a Party. 
 
Article 34 
 
National Treatment
 
 
 With respect to establishment, and subject to the reservations set out in Annex X, each Party 
shall grant to juridical and natural persons of the other Party treatment no le ss favourable than that it 
accords to its own juridical and natural pe rsons performing a like economic activity. 
 WT/REG179/1 
Page 16  
 
Article 35 
 
Reservations
 
 
1. National treatment as provided for un der Article 34 shall not apply to: 
(a) any reservation that is listed by a Party in Annex X; 
(b) an amendment to a reservation covered by  paragraph (a) to the extent that the 
amendment does not decrease the conformity of the reservation with Article 34; 
(c) any new reservation adopted by a Party, and incorporated into Annex X which does 
not affect the overall level of commitments  of that Party under this Agreement;  
to the extent that such reservations  are inconsistent with Article 34. 
2. As part of the reviews provided for in Article 37 the Parties undertake to  review at least every 
three years the status of the reservations set out in  Annex X with a view to reducing or removing such 
reservations. 
3. A Party may, at any time, either upon the request  of another Party or unilaterally, remove in 
whole or in part reservations set out in Anne x X by written notification to the other Parties. 
4. A Party may, at any time, incorporate a new reservation into Annex X in accordance with 
paragraph 1(c) of this Article by  written notification to the other Pa rties. On receiving such written 
notification, the other Parties may request consulta tions regarding the reserv ation. On receiving the 
request for consultations, the Party incorporating the new reservation shall enter into consultations 
with the other Parties. 
Article 36 
 
Right To Regulate  
 
 Subject to the provisions of Article 34, each Party may regulate the establishment of juridical 
and natural persons.  
Article 37 
 
Final Provisions
 
  With the objective of progressive liberalisati on of investment conditions, the Parties affirm 
their commitment to review the investment legal fr amework, 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.  WT/REG179/1 
 Page 17 
 
 
SECTION III – PAYMENTS AND CAPITAL MOVEMENTS 
 
Article 38 
 
Objective And Scope  
 
1. The Parties shall aim at the liberalisation of current payments and capital movements between 
them, in conformity with the commitments undertaken  in the framework of the international financial 
institutions and with due consideration to each Party's currency stability. 
2. This Section applies to all current payments  and capital movements between the Parties. 
Specific provisions on current payments and capital movements are set out in Annex XI. 
Article 39 
 
Current Account  
  The Parties shall allow, in freely convertible cu rrency and in accordance with the Articles of 
Agreement of the International Monetary Fund, an y payments and transfers of the Current Account 
between the Parties. 
 
Article 40 
 
Capital Account
 
 
 The Parties shall allow the free movements of ca pital relating to direct investments made in 
accordance with the laws of the host country and i nvestments made in accordance with the provisions 
of Sections Trade in Services and Establishment of this Chapter, and the liquidation or repatriation of 
these capitals and of any profit stemming therefrom.  
Article 41 
 
Exceptions And Safeguard Measures
 
 1. Where, in exceptional circumstances, payments and capital movements between the Parties 
cause or threaten to cause serious difficulties for the operation of monetary policy or exchange rate 
policy in any Party, the Party concerned may ta ke safeguard measures with regard to capital 
movements that are strictly necessary for a period not exceeding one year. The application of 
safeguard measures may be extended th rough their formal reintroduction. 
2. The Party adopting the safeguard measures shall inform the other Party forthwith and present, 
as soon as possible, a time schedule for their removal. 
  Article 42  
 
Final Provisions
 
  The Parties shall consult each other with a view to facilitating the movement of capital 
between them in order to promote th e objectives of this Agreement. 
 WT/REG179/1 
Page 18  
 
SECTION IV – COMMON PROVISIONS 
 
Article 43 
 
Relation To Other International Agreements
 
 
 With respect to matters related to this Chapte r, the Parties confirm th e rights and obligations 
existing under any bilateral or multilateral agreements to which they are a party. 
 
Article 44 
 
General Exceptions  
 
 Article XIV and Article XXVIII paragraph (o) of the GATS are hereby incorporated into and 
made part of this Chapter. 
 
Article 45 
 
Financial Services  
 
1. The Parties understand that no commitments have been made in financial services. For greater 
clarity, financial services are defined as in paragraph 5 of the Annex on Financial Services of the GATS. 
2. Notwithstanding paragraph 1, two years after th e entry into force of this Agreement, the 
Parties will consider the inclusion of financial services in this Ch apter on a mutually advantageous 
basis and securing an overall balance of rights and obligations. 
 
CHAPTER IV : PROTECTION OF  INTELLECTUAL PROPERTY 
 
Article 46 
 
Intellectual Property Rights
 
 1. The Parties shall grant and ensure adequate, e ffective and non-discriminatory protection of 
intellectual property rights, and provide for measur es for the enforcement of  such rights against 
infringement thereof, counterfeiting and piracy, in accordance with the provi sions of this Article, 
Annex XII to this Agreement and the intern ational agreements referred to therein. 
2. The Parties shall accord to each  other’s nationals treatment no less favourable than that they 
accord to their own nationals. Exemptions from this obligation must be in accordance with the 
substantive provisions of Articles 3 and 5 of the WTO Agreement on Trade-Related Aspects of 
Intellectual Property Rights (hereinafter referred to as “the TRIPS Agreement”).
6 
3. The Parties shall grant to each other’s nationa ls treatment no less favourable than that 
accorded to nationals of any other State. Exemptions  from this obligation must be in accordance with 
the substantive provisions of the TRIPS Agreem ent, in particular Ar ticles 4 and 5 thereof6. 
4. The Parties agree, upon request of any Party to the Joint Committee and subject to its 
consensus, to review the provisions on the protection of intellectual property rights contained in the 
                                                      
6 It is understood that the reference of paragraphs 2 and 3 to Articles 3 to 5 of the TRIPS Agreement is 
made for the purpose of outlining their applicability to the provisions on Intellectual Property of this Agreement.  WT/REG179/1 
 Page 19 
 
 
present Article and in Annex XII, with a view to  further improving the levels of protection and to 
avoid or remedy trade distortions caused by actual le vels of protection of intellectual property rights. 
 
CHAPTER V : GOVERNMENT PROCUREMENT 
 
  Article 47  
 
Objective  
 
 In accordance with the provisions of this Chapter, the Parties shall ensure the effective and reciprocal opening of their government procurement markets. 
 
Article 48 
 
Scope And Coverage
 
 1. This Chapter applies to any law, regulation, pr ocedure or practice regarding any procurement, 
by the entities of the Parties, of goods
7 and services including work s, subject to the conditions 
specified by each Party in Annexes XIII and XIV.  
2. This Chapter shall not be applicable to: 
(a) contracts awarded pursuant to: 
(i) an international agreement and intend ed for the joint implementation or 
exploitation of a project by the contracting parties; 
(ii) an international agreement relating to the stationing of troops; and 
(iii) the particular procedure of an  international organisation; 
(b) non-contractual agreements or any form of  government assistance and procurement 
made in the framework of assistance or co-operation programmes; 
(c) contracts for: 
(i) the acquisition or rental of land, existing buildings, or other immovable 
property or concerning rights thereon; 
(ii) the acquisition, development, produc tion or co-production of programme 
material by broadcasters and contracts for broadcasting time; 
(iii) arbitration and conciliation services; 
(iv) employment contracts; and 
(v) research and development services other than those where the benefits accrue 
exclusively to the entity for its use in  the conduct of its own affairs, on 
condition that the service is wholly remunerated by the entity; 
(d) financial services. 
                                                      
7 For the purpose of this Chapter, “goods” shall mean goods classified in chapters 1 to 97 of the HS. WT/REG179/1 
Page 20  
 
3. Public works concessions, as defined in Article 49,  shall also be subject to this Chapter, as 
specified in Annexe s XIII and XIV. 
4. No Party may prepare, design or otherwise structure any procurement contract in order to 
avoid the obligations under this Chapter. 
Article 49 
 
Definitions
 
 
 For the purpose of this Chapter, th e following definitions shall apply: 
 
(a) “entity” means an entity covered in Annex XIII; 
(b) “government procurement” means the proce ss by which a government obtains the use 
of or acquires goods or services, or any combination thereof, for governmental 
purposes and not with a view to commercial sale or resale, or use in the production or 
supply of goods or services for commercial sale or resale; 
(c) “liberalisation” means a process as a result  of which an entity enjoys no exclusive or 
special rights and is exclusively engaged in the provision of goods or services on 
markets that are subject to effective competition; 
(d) “offsets” means those conditions imposed or co nsidered by an entity prior to, or in the 
course of its procurement process, that encourage local development or improve its 
Party's balance of payments accounts by means of requirements of local content, 
licensing of technology, investment, count er-trade or similar requirements;  
(e) “privatisation” means a process by means of which a public entity is no longer 
subject to government control, whether by public tender of the shares of that entity or 
otherwise, as contemplated in the respective Party’s legislation in force; 
(f) “public works concessions” means a contract of the same type as the public works 
procurement contracts, except for the fact th at the remuneration for the works to be 
carried out consists either solely in the right  to exploit the construction or in this right 
together with a payment; 
(g) “supplier” means a natural or legal person that provides or could provide goods or 
services to an entity; 
(h) “technical specifications” means a specification, which lays down the characteristics 
of the products or services to be procured , such as quality, performance, safety and 
dimensions, symbols, terminology, packaging, marking and labelling, or the 
processes and methods for their production and requirements relating to conformity 
assessment procedures prescrib ed by procuring entities; and 
(i) “tenderer” means a supplier who has submitted a tender.  WT/REG179/1 
 Page 21 
 
 
Article 50 
 
National Treatment And Non-Discrimination  
 
1. With respect to any laws, regulations, procedures and practices regarding government 
procurement covered by this Chapter, each Party shall grant the goods, services and suppliers of 
another Party a treatment no less favourable than that accorded by it to domestic goods, services and 
suppliers. 
2. With respect to any laws, regulations, procedures and practices regarding government 
procurement covered by this Ch apter, each Party shall ensure: 
(a) that its entities do not treat a locally-estab lished supplier less favourably than another 
locally-established supplier on the basis of  the degree of foreign affiliation to or 
ownership by, a person of another Party; and 
(b) that its entities do not discriminate against a locally-established supplier on the basis 
that the goods or services offered by that  supplier for a particular procurement are 
goods or services of another Party. 
3. This Article shall not apply to measures conc erning customs duties or other charges of any 
kind imposed on, or in connection with importation, the method of levying such duties and charges, 
other import regulations, including restrictions and formalities, nor to measures affecting trade in 
services other than measures specifically governing procurement covered by this Chapter. 
Article 51 
 
Prohibition Of Offsets  
 
 Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, 
goods or services, in the evaluation of bids or in the award of contracts, consider, seek or impose 
offsets. 
 
Article 52 
 
Valuation Rules  
 
1. Entities shall not split up a procurement, nor use any other method of contract valuation with 
the intention of evading the application of this Chapter when determining whether a contract is 
covered by the disciplines thereof, subject to the conditions set out in Annexes XIII and XIV. 
2. In calculating the value of a contract, an entity shall take into account all forms of 
remuneration, such as premiums, fees, commission s and interests, as well as the maximum permitted 
total amount, including option clauses, provided for by the contract. 
3. When, due to the nature of the contract, it is not possible to calculate in advance its precise 
value, entities shall estimate this value on the basis of objective criteria. WT/REG179/1 
Page 22  
 
Article 53 
 
Transparency
 
 
1. Each Party shall promptly publish any law, regulation, judicial decision and administrative 
ruling of general application an d procedure, including standard contract clauses, regarding 
procurement covered by this Chapter in the approp riate publications referred to in Appendix 2 of 
Annex XIV, including officially designated electronic media. 
2. Each Party shall promptly publish in the same  manner all modifications to such measures. 
Article 54 
 
Tendering Procedures  
 
1. Entities shall award their public contracts by op en or selective tendering procedures according 
to their national procedures, in compliance with this Chapter and in a non-discriminatory manner. 
2. For the purposes of this Chapter: 
(a) open tendering procedures are those procedures whereby any interested supplier may 
submit a tender; 
(b) selective tendering procedures are those procedures whereby, consistent with Article 
55 and other relevant provisions of this Chapter, only suppliers satisfying 
qualification requirements established by th e entities are invited to submit a tender. 
3. However, in the specific cases and only under the conditions laid down in Article 56, entities 
may use a procedure other than the open or selective tendering procedures referred to in paragraph 1, 
in which case the entities may choose not to publ ish a notice of intended procurement, and may 
consult the suppliers of their choice and negotiate the terms of contract with one or more of these. 
4. Entities shall treat tenders in confidence. In particular, they shall not provide information 
intended to assist particular participants to brin g their tenders up to the level of other participants. 
Article 55 
 
Selective Tendering  
 
1. In selective tendering, entities may limit the nu mber of qualified suppliers they will invite to 
tender, consistent with the efficien t operation of the procurement process, provided that they select the 
maximum number of domestic suppliers and supplie rs of another Party, and that they make the 
selection in a fair and non-discriminatory manner  and on the basis of the criteria indicated in the 
notice of intended procurement or in tender documents. 
2. Entities maintaining permanent lists of qualified suppliers may select suppliers to be invited 
to tender from among those listed, under the conditions  foreseen in Article 57 (7). Any selection shall 
allow for equitable opportunities for suppliers on the lists.   WT/REG179/1 
 Page 23 
 
 
Article 56 
 
Other Procedures  
 
1. Provided that the tendering procedure is not used to avoid maximum possible competition or 
to protect domestic suppliers, entities shall be allowe d to award contracts by means other than an open 
or selective tendering procedure in the following circumstances and subject to the following 
conditions, where applicable:  
(a) when no suitable tenders or request to partic ipate have been submitted in response to 
a prior procurement, on condition that the requirements of the initial procurement are 
not substantially modified; 
(b) when, for technical or artistic reasons, or  for reasons connected with protection of 
exclusive rights, the contract may be performed only by a particular supplier and no 
reasonable alternative or substitute exists; 
(c) for reasons of extreme urgency brought about by events unforeseeable by the entity, 
the products or services could not be obtained in time by means of open or selective 
tendering procedures; 
(d) for additional deliveries of goods or services  by the original supplier where a change 
of supplier would compel the entity to pr ocure equipment or services not meeting 
requirements of interchangeability with al ready existing equipment, software or 
services; 
(e) when an entity procures prototypes or a first product or service which are developed 
at its request in the course of, and for, a particular contract for research, experiment, 
study or original development; 
(f) when additional services which were not in cluded in the initial contract but which 
were within the objectives of the orig inal tender documentation have, through 
unforeseeable circumstances, become necessary to complete the services described 
therein. However, the total value of contracts awarded for the additional construction 
services may not exceed 50 percent of the amount of the main contract; 
(g) for new services consisting of the repetiti on of similar services and for which the 
entity has indicated in the notice concerning the initial service, that tendering 
procedures other than open or selective might be used in awarding contracts for such new services; 
(h) in the case of contracts awarded to the winner of a design contest, provided that the 
contest has been organised in a manner which is consistent with the principles of this 
Chapter; in case of several successful can didates, all successful candidates shall be 
invited to participate in the negotiations; and 
(i) for quoted goods purchased on a commodity market and for purchases of goods made 
under exceptionally advantageous conditions which only arise in the very short term 
in the case of unusual disposals and not for routine purchases from regular suppliers. 
2. The Parties shall ensure that, whenever it is n ecessary for entities to resort to a procedure 
other than the open or selective tendering proce dures based on the circumstances set forth in 
paragraph 1, the entities shall maintain a record or prepare a written report providing specific 
justification for the contract awarded under that paragraph. WT/REG179/1 
Page 24  
 
Article 57 
 
Qualification Of Suppliers
 
 
1. Any conditions for participation in procurement sh all be limited to those that are essential to 
ensure that the potential supplier has the capability to fulfil the requirements of the procurement and 
the ability to execute the contract in question.  
2. In the process of qualifying suppliers, entitie s shall not discriminate between domestic 
suppliers and suppliers of another Party. 
3. A Party shall not impose the condition that, in order for a supplier to participate in a 
procurement, the supplier has previously been awarded one or more contracts by an entity of that 
Party or that the supplier has prior work ex perience in the territory of that Party. 
4. Entities shall recognise as qu alified suppliers all supplier s who meet the conditions for 
participation in a particular in tended procurement. Entities shall base their qualification decisions 
solely on the conditions for participation that have  been specified in advance in notices or tender 
documentation. 
5. Nothing in this Chapter shall preclude the exclusion of any supplier on grounds such as 
bankruptcy or false declarations or conviction for a serious crime such as participation in criminal 
organisations. 
6. Entities shall promptly communicate to suppliers  that have applied for qualification their 
decision on whether or not they qualify. 
7. Entities may establish permanent lists of qualifie d suppliers provided that the following rules 
are respected: 
(a) entities establishing permanent lists sha ll ensure that suppliers may apply for 
qualification at any time; 
(b) any supplier having requested to become a qualified supplier shall be notified by the 
entities concerned of the decision in this regard; 
(c) suppliers requesting to participate in a gi ven intended procurement who are not on the 
permanent list of qualified suppliers shall be given the possibility to participate in the 
procurement by presenting the equivalent  certifications and other means of proof 
requested from suppliers who are on the list; 
(d) when an entity operating in the utilities sector uses a notice on the existence of a 
permanent list as a notice of intended procurement, as provided in Annex XIV, 
Appendix 5, paragraph 6, suppliers requesting to participate who are not on the 
permanent list of qualified su ppliers shall also be considered for the procurement, 
provided there is sufficient time to complete  the qualification proced ure; in this event, 
the procuring entity shall promptly start pr ocedures for qualification and the process 
of, and the time required for, qualifying s uppliers shall not be used in order to keep 
suppliers of other Parties off the suppliers’ list.  
    WT/REG179/1 
 Page 25 
 
 
Article 58 
 
Publication Of Notices  
 
General provisions 
 
1. Each Party shall ensure that its entities provide  for effective dissemination of the tendering 
opportunities generated by the relevant government procurement processes, providing suppliers of 
another Party with all the information requi red to take part in such procurement. 
2. For each contract covered by this Chapter, exce pt as set out in Articles 54(3) and 56, entities 
shall publish in advance a notice inviting interested suppliers to submit tenders, or where appropriate, 
requests for participation for that contract.  
3. The information in each notice of intended proc urement shall include at least the following: 
(a) name, address, telefax number, electronic addr ess of the entity and, if different, the 
address where all documents relating to the procurement may be obtained; 
(b) the tendering procedure chosen and the form of the contract; 
(c) a description of the intended procurement, as well as essential contract requirements 
to be fulfilled; 
(d) any conditions that suppliers must fulfil to participate in the procurement; 
(e) time-limits for submission of tenders an d, where appropriate, other time limits; 
(f) main criteria to be used for award of the contract; and 
(g) if possible, terms of payment and any other terms. 
Common Provisions 
 
4. Each notice referred to in this Article and Appendix 5 of Annex XIV, shall be accessible 
during the entire time period established for tendering for the relevant procurement. 
5. Entities shall publish the notices in a timely manner through means which offer the widest 
possible and non-discriminatory access to the interested  suppliers of the Parties. These means shall be 
accessible free of charge through a single point of access specified in Appendix 2 to Annex XIV. 
Article 59 
 
Tender Documentation  
 
1. Tender documentation provided to suppliers shal l contain all informatio n necessary to permit 
them to submit responsive tenders.  
2. Where contracting entities do not offer free dir ect access to the entire tender documents and 
any supporting documents by electronic means, en tities shall make promptly available the tender 
documentation at the request of any supplier of the Parties. WT/REG179/1 
Page 26  
 
3. Entities shall promptly reply to any reasonable re quest for relevant information relating to the 
intended procurement, on condition that such inform ation does not give that supplier an advantage 
over its competitors. 
Article 60 
 
Technical Specifications
 
 
1. Technical specifications shall be set out in the notices, tender documents or additional 
documents. 
2. Each Party shall ensure that its entities do not prepare, adopt or apply any technical 
specifications with a view to, or with the effect of, creating unnecessary obstacles to trade between the 
Parties. 
3. Technical specifications pres cribed by entities shall be: 
(a) in terms of performance and functional require ments rather than design or descriptive 
characteristics; and 
(b) based on international standards, where thes e exist or, in their absence, on national 
technical regulations8, recognised national standards9, or building codes. 
4. The provisions of paragraph 3 do not apply when the entity can objectively demonstrate that 
the use of technical specifications referred to in that paragraph would be ineffective or inappropriate 
for the fulfilment of the legitimate objectives pursued. 
5. In all cases, entities shall consider bids which do  not comply with the technical specifications 
but meet the essential requirements thereof and ar e fit for the purpose intended. The reference to 
technical specifications in the tender documents must include words such as “or equivalent”. 
6. There shall be no requirement or reference to a particular trademark or trade name, patent, 
design or type, specific origin, producer or supplier, unless there is no sufficiently precise or 
intelligible way of describing the procurement requ irements and provided that words, such as “or 
equivalent”, are included in the tender documentation. 
7. The tenderer shall have the burden of proof to demonstrate that his bid meets the essential 
requirements. 
                                                      
8 For the purpose of this Chapter, a technical regulation is a document which lays down characteristics 
of a product or a service or their related processes and production methods, including the applicable 
administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labeling requirements as they apply to a product, service, process 
or production method. 
9 For the purpose of this Chapter, a standard is a document approved by a recognised body, that 
provides, for common and repeated use, rules, guidelines or characteristics for products or services or related processes and production methods, with which compliance is not mandatory. It may also include or deal 
exclusively with terminology, symbols, packaging, marking or labeling requirements as they apply to a product, 
service, process or production method.  WT/REG179/1 
 Page 27 
 
 
Article 61 
 
Time Limits  
 
1. All time limits established by the entities for the receipt of tenders and requests to participate 
shall be adequate to allow supplier s of another Party, as well as domestic suppliers, to prepare and to 
submit tenders, and where appropriate, requests for participation or applications for qualifying. In 
determining any such time limit, enti ties shall, consistent with their own reasonable needs, take into 
account such factors as the complexity of the intended procurement and the normal time for 
transmitting tenders from foreign as well as domestic points. 
2. Each Party shall ensure that its entities shall take due account of pub lication delays when 
setting the final date for re ceipt of tenders or of requests for participation or for qualifying for the 
suppliers’ list. 
3. The minimum time limits for the receipt of tenders are specified in Appendix 3 to Annex 
XIV. 
Article 62 
 
Negotiations  
 
1. A Party may provide for its entities to conduct negotiations: 
(a) in the context of procurements in which they have indicated such intent in the notice 
of intended procurement; or 
(b) when it appears from evaluation that no one tender is obviously the most 
advantageous in terms of the specific evaluation criteria set forth in the notices or 
tender documentation. 
2. Negotiations shall primarily be used to identif y the strengths and weaknesses in tenders. 
3. Entities shall not, in the course of negoti ations, discriminate between tenderers.  
 In particular, they  shall ensure that: 
 
(a) any elimination of participants is carried ou t in accordance with the criteria set forth 
in the notices and tender documentation; 
(b) all modifications to the criteria and to th e technical requirement s are transmitted in 
writing to all remaining participants in the negotiations; 
(c) on the basis of the revised requirements and/or when negotiations are concluded, all 
remaining participants are afforded an op portunity to submit new or amended tenders 
in accordance with a common deadline. 
Article 63 
 
Submission, Receipt And Opening Of Tenders  
 
1. Tenders and requests to participate in procedures shall be submitted in writing. WT/REG179/1 
Page 28  
 
2. Entities shall receive and open bids from tenderers under procedures and conditions 
guaranteeing the respect of the principles of transparency and nondiscrimination. 
Article 64 
 
Awarding Of Contracts
 
 
1. To be considered for award, a tender must, at the time of opening, conform to the essential 
requirements of the notices or tender documentatio n and be submitted by a supplier which complies 
with the conditions for participation. 
2. Entities shall make the award to the tenderer whos e tender is either the lowest tender or the 
tender which, in terms of the speci fic objective evaluation criteria previo usly set forth in the notices or 
tender documentation, is determined to be the most advantageous. 
  Article 65  
 
Information On Contract Award  
 
1. Each Party shall ensure that its entities provide for effective dissemination of the results of 
government procurement processes. 
2. Entities shall promptly inform tenderers of deci sions regarding the award of the contract and 
of the characteristics and relativ e advantages of the selected tender. Upon request, entities shall 
inform any eliminated tenderer of the reasons for the rejection of its tender. 
3. Entities may decide to withhold certain information on the contract award where release of 
such information would prevent law enforcement or  otherwise be contrary to the public interest, 
would prejudice the legitimate commercial interest s of suppliers, or might prejudice fair competition 
between them. 
Article 66 
 
Bid Challenges  
 
1. Entities shall accord impartial and timely co nsideration to any complaints from suppliers 
regarding an alleged breach of this Chapter in the context of a procurement procedure. 
2. Each Party shall provide non-discriminatory, tim ely, transparent and effective procedures 
enabling suppliers to challenge alleged breaches of th is Chapter arising in the context of procurements 
in which they have, or have had, an interest. 
3. Challenges shall be heard by an impartial an d independent reviewing authority. A reviewing 
authority which is not a court shall either be subj ect to judicial review or shall have procedural 
guarantees similar to those of a court. 
4. Challenge procedures shall provide for: 
(a) rapid interim measures to correct breach es of this Chapter and to preserve 
commercial opportunities. Such action may result in suspension of the procurement 
process. However, procedures may provide that overriding adverse consequences for 
the interests concerned, including the public  interest, may be taken into account in 
deciding whether such measures should be applied; and  WT/REG179/1 
 Page 29 
 
 
(b) if appropriate, correction of the breach of this Chapter or, in the absence of such 
correction, compensation for the loss or da mages suffered, which may be limited to 
costs for tender preparation and protest. 
  Article 67  
 
Information Technology And Co-Operation  
 
1. The Parties shall, to the extent possible, ende avour to use electronic means of communication 
to permit efficient dissemination of information on  government procurement, particularly as regards 
tender opportunities offered by entities, while resp ecting the principles of transparency and non-
discrimination.  
2. The Parties shall endeavour to provide each ot her with technical co-operation, particularly 
aimed at small and medium size enterprises, with  a view to achieve a better understanding of their 
respective government procurement systems and statistics, as well as a better access to their respective 
markets. 
  Article 68  
 
Modifications To Coverage  
 
1. A Party may modify its coverage under this Chapter, provided that it: 
(a) notifies the other Parties of the modification; and 
(b) provides the other Parties, within 30 days  following the date of such notification, 
appropriate compensatory adjustments to its coverage in order to maintain a level of 
coverage comparable to that existing prior to the modification. 
2. Notwithstanding paragraph 1(b), no compensatory  adjustments shall be provided to the other 
Parties where the modification by a Party of  its coverage under this Chapter concerns: 
(a) rectifications of a purely fo rmal nature and minor amen dments to Annexes XIII and 
XIV; 
(b) one or more covered entities on which gove rnment control or influence has been 
effectively eliminated as a result of privatisation or liberalisation. 
3. Where the Parties agree on the modification, the Joint Committee shall give effect to the 
agreement by amending the relevant Annex. 
  Article 69  
 
Further Negotiations  
 
 In the case that a Party offers, in the future, a third party additional advantages with regard to 
its respective government procurement market ac cess coverage agreed under this Chapter, it shall 
agree, upon request of another Party, to enter into  negotiations with a view to extending coverage 
under this Chapter on a reciprocal basis. WT/REG179/1 
Page 30  
 
Article 70 
 
Exceptions
 
 
 Provided that such measures are not applied in a manner that would constitute a means of 
arbitrary or unjustifiable discrimina tion between the Parties or a dis guised restriction on trade between 
them, nothing in this Chapter shall be construed to  prevent any Party from adopting or maintaining 
measures necessary to protect:  
 
(a) public morals, order or safety; 
(b) human life, health or security; 
(c) animal or plant life or health; 
(d) intellectual property; or 
(e) relating to goods or services of handicapped persons, of philanthropic institutions or 
of prison labour. 
Article 71 
 
Review And Implementation  
 
1. The Joint Committee shall review the implementation of this Chapter every two years, unless 
otherwise agreed by the Parties; it shall consider an y issue arising from it, a nd take appropriate action 
in the exercise of its functions. 
2. At the request of a Party, the Parties shall convene a bilateral Working Group to address 
issues related to the implementation of th is Chapter. Such issues may include:  
(a) bilateral cooperation relating to th e development and use of electronic 
communications in government procurement systems; 
(b) the exchange of statistics and other information needed for monitoring procurement 
conducted by the Parties and the results of  the application of this Chapter; and 
(c) exploration of potential interest in further negotiations aimed at further broadening of 
the scope of market access commitments under this Chapter. 
 
CHAPTER VI : COMPETITION POLICY 
 
Article 72 
 
Objectives  
 1. The Parties recognise that anti-competitive busin ess conduct may frustrate the benefits arising 
from this Agreement. 
2. The Parties undertake to apply their competition laws in a manner consistent with this 
Chapter so as to avoid that the benefits of the libe ralisation process in goods and services as provided  WT/REG179/1 
 Page 31 
 
 
by this Agreement may be diminished or ca ncelled out by anticompetitive business conduct.10 To 
facilitate this, the Parties agree to co-operate and co ordinate under the provisions of this Chapter. This 
co-operation includes notification, consul tation, and exchange of information. 
3. For the purposes of this Agre ement, ”anti-competitive business conduct” includes, but is not 
limited to, anti-competitive agreements, concerted practices or arrangements by competitors, the 
abuse of single or joint dominant positions in a market and mergers with substantial anti-competitive 
effects. These practices refer to goods and services and may be carried out by private and public 
enterprises. 
4. The Parties recognise the importan ce of principles of competition that are accepted in relevant 
multilateral fora of which the Parties are members or observers, including non-discrimination, due 
process, and transparency.  
Article 73 
 
Notifications  
 1. Each Party, through its designated authority, sh all notify the other Parties of an enforcement 
activity regarding anti-competitive business conduct rela ting to goods and services if it is liable to 
substantially affect another Party’s important intere sts, or if the anti-competitive business conduct is 
liable to have a direct and substantial effect in the territory of that other Party or is taking place 
principally in the territory of that other Party. 
2. Provided that this is not contrary to the Par ties’ competition laws and does not affect any 
investigation being carried out, notification shall take place at an early stage of the procedure. 
3. The notifications provided for in paragraph 1 should be detailed enough to permit an 
evaluation in the light of the interests of the other Parties. 
Article 74 
 
Co-Ordination Of Enforcement Activities
 
 
 A Party, through its designated authority, may notify another Party of its willingness to co-
ordinate enforcement activities with respect to a spec ific case. This co-ordina tion shall not prevent the 
Parties from taking autonomous decisions. 
 
Article 75 
 
Consultations  
 1. Each Party shall, in accordance w ith its laws, take into consider ation the important interests of 
the other Parties in the course of its enfo rcement activities on anticompetitive business conduct 
relating to goods and services. If a Party consid ers that an investigation or proceeding being 
conducted by another Party may adversely affect such Party's important interests it may transmit its 
views on the matter to that other Party through its designated authority. Without prejudice to the 
continuation of any action under its competition laws and to its full freedom of ultimate decision, the 
Party so addressed should give full and sympathetic  consideration to the views expressed by the 
requesting Party. 
                                                     
 
10 For the purpose of this Chapter, “goods” shall mean goods classified in chapters 1 to 97 of the HS. WT/REG179/1 
Page 32  
 
2. If a Party considers that an anti-competitive busi ness conduct carried out within the territory 
of another Party may have an adverse effect on its in terests, the first Party may, through its designated 
authority, request that that other Party initiates appr opriate enforcement activitie s. The request shall be 
as specific as possible about the nature of the an ti-competitive business conduct and its effect on the 
interest of the requesting Party, and shall includ e an offer of such further information and other 
assistance as the requesting Party is able to pr ovide. The requested Party shall carefully consider 
whether to initiate enforcement activities, or to ex pand ongoing enforcement activities, with respect to 
the anti-competitive business conduc t identified in the request.  
3. Regarding the issues addressed in paragraphs 1 and 2 each Party undertakes to exchange 
information regarding sanctions and remedies appl ied and to provide the grounds on which those 
actions were taken, when requested by another Party. 
4. A Party may request consultations within the Joint Committee regarding the issues addressed 
in paragraphs 1 and 2 as well as any other matter covered by this Chapter. Such a request shall 
indicate the reasons for the request and whether any procedural time limit or other constraints require 
that consultations be expedited. 
  Article 76  
 
Exchange Of Information And Confidentiality
 
 
1. With a view to facilitating the effective applic ation of their competiti on laws in order to 
eliminate the negative effects of anti-competitive bus iness conduct relating to goods and services, the 
Parties are encouraged to exchange information. 
2. All exchange of information shall be subject to the rules and standards of confidentiality 
applicable in the territory of each Party. No Party sh all be required to provide information when this is 
contrary to its laws regarding disclosure of inform ation. Each Party shall maintain the confidentiality 
of any information provided to it according to the li mitations that the submitting Party requests for the 
use of such information. Where the laws of a Party so provide, confidential information may be provided to their respective courts of justice. 
Article 77 
 
Public Enterprises And Enterprises Entrusted With Special Or Exclusive Rights,
 
 Including Designated Monopolies  
 
1. With regard to public enterprises and enterprises to which special or exclusive rights have 
been granted, the Parties shall ensu re that no measure is adopted or maintained that distorts trade in 
goods or services between the Parties to an extent contrary to the Parties’ interests and that such 
enterprises shall be subject to the rules of competitio n insofar as the applicatio n of such rules does not 
obstruct the performance, in law or in fact , of the particular tasks assigned to them. 
2. The Parties confirm their rights and obligations  under Article XVII of the GATT 1994 and 
Article VIII of the GATS with regard to enterprises referred to in paragraph 1.  
Article 78 
 
Dispute Settlement  
 
 No Party may have recourse to dispute settleme nt under this Agreement for any matter arising 
under this Chapter.  WT/REG179/1 
 Page 33 
 
 
Article 79 
 
Designated Authorities  
 
 For the purpose of applying Articles 73, 74 and 75, each Party shall designate its competition 
authority or any other public entity and communicat e its decision to the other Parties at the first 
meeting of the Joint Committee but in no case late r than 60 days after the entry into force of the 
Agreement. 
 
Article 80 
 
Definitions  
 
 For the purpose of this Chapter: 
 
(a) “competition laws” means: 
(i) for Chile, Decreto Ley N° 211 of 1973 and Ley N° 19.610 of 1999 and their 
implementing regulations or amendments as well as other laws dealing with 
competition matters; 
(ii) for the Republic of Iceland, Competition Law No. 8/1993 as amended by 
Law No. 24/1994, 83/1997, 82/1998 and 107/2000 as well as other laws dealing with competition matters; 
(iii) for the Principality of Liechtenstein, a ny competition rules that Liechtenstein 
recognises or undertakes to apply within its territory, including those 
provided for in other international agreements, such as the Agreement on the 
European Economic Area; 
(iv) for the Kingdom of Norway, Act No. 65 of 11 June 1993 relating to 
Competition in Commercial Activity as well as other laws dealing with 
competition matters; 
(v) for the Swiss Confederation, the Federal Act on Cartels and Other Restraints 
of Competition of 6 October 1995 and the Order on the Control of Business 
Concentration of 17 June 1996, and any regulation provided for by these acts 
as well as other laws dealing with competition matters,  
and any changes that the above mentioned legislation may undergo after the 
conclusion of this Agreement; 
(b) “enforcement activity” includes any appli cation of competition laws by way of 
investigation or proceeding conducted by a Party, which may result in the imposition 
of penalties or remedies. WT/REG179/1 
Page 34  
 
CHAPTER VII : SUBSIDIES 
 
Article 81 
 
Subsidies/State Aid
 
 
1. The rights and obligations of the Parties in re spect of subsidies rela ted to goods shall be 
governed by Article XVI of the GATT 1994 and the WTO Agreement on Subsidies and 
Countervailing Measures. 
2. The rights and obligations of th e Parties in respect of subsidie s related to services shall be 
governed by the GATS. 
3. Each Party may request information on individual cases of state aid believed to affect trade 
between the Parties. The requeste d Party will make its best efforts to provide such information. 
 
CHAPTER VIII : TRANSPARENCY 
 
Article 82 
 
Publication  
 
1. The Parties shall publish, or otherwise make publicly available, their laws, regulations, 
procedures and administrative rulings of general ap plication as well as the international agreements, 
that may affect the operation of this Agreement.  
2. The Parties shall provide, upon request, informati on on matters referred to in paragraph 1. 
Article 83 
 
Contact Points And Exchange Of Information  
 
1. In order to facilitate communication between the Parties on any trade matter covered by this 
Agreement, each Party shall designate a contact point . On the request of any Party, the contact point 
of the other Parties shall indicate the office or official responsible for the matter and provide the 
required support to facilitate commun ication with the requesting Party. 
2. On the request of a Party, each Party shall provide information and reply to any question from 
the other Parties relating to an actual measure that may affect the operation of this Agreement. The 
Parties shall make information on proposed measures  available to the extent possible under their 
domestic laws and regulations. 
3. The information referred to under this Article sha ll be considered to have been provided when 
the information has been made available by appropriate notification to the WTO or when the 
information has been made available on the offici al, publicly and fee-free accessible website of the 
Party concerned.  WT/REG179/1 
 Page 35 
 
 
Article 84 
 
Cooperation On Increased Transparency  
 
 The Parties agree to cooperate in bilate ral and multilateral fora on ways to increase 
transparency in trade matters. 
 
 
CHAPTER IX : ADMINISTRATION OF THE AGREEMENT 
 
Article 85 
 
The Joint Committee  
 
1. The Parties hereby establish the EFTA-Chile Jo int Committee, comprising Ministers of each 
Party, or senior officials delegated by them for this purpose. 
2. The Joint Committee shall: 
(a) supervise the implementation of this Agreem ent and evaluate the results obtained in 
its application; 
(b) oversee the further elabor ation of this Agreement; 
(c) endeavour to resolve disputes that ma y arise regarding the interpretation or 
application of this Agreement; 
(d) supervise the work of the sub-committees and working groups established or created 
under this Agreement; and 
(e) carry out any other function assigned to it under this Agreement. 
3. The Joint Committee may decide to set up such  sub-committees and working groups as it 
considers necessary to assist it in accomplishing its tasks. The Joint Committee may seek the advice 
of non-governmental persons and groups. 
4. The Joint Committee shall establish its rules of procedure. It may take decisions as provided 
for in this Agreement. On other matters the Jo int Committee may make recommendations. The Joint 
Committee shall take decisions and make recommendations by consensus. 
5. Subject to the provisions set out in Annex XV, the Joint Committee may amend the Annexes 
and the Appendices to this Agreement.  
6. The Joint Committee shall meet whenever necessary but normally every two years. The 
regular meetings of the Joint Committee shall alternate between Chile and an EFTA State. 
7. Each Party may request at any time, through a notice in writing to the other Parties, that a 
special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise. 
   WT/REG179/1 
Page 36  
 
Article 86 
 
The Secretariat
 
 
1. The Parties hereby establish a Se cretariat of this Agreement, comprising the competent organs 
referred to in Annex XVI. 
2. All communications to or by a Party shall be sent through the respective competent organs 
unless otherwise provided for in this Agreement. 
 
CHAPTER X : DISPUTE SETTLEMENT 
 
Article 87 
 
Scope  
 1. This Chapter shall apply with respect to the avoi dance or the settlement of all disputes arising 
from this Agreement be tween one or several EFTA States and Chile. 
2. The Parties shall at all times endeavour to agre e on the interpretation and application of this 
Agreement, and shall make every attempt through co-operation and consultations to arrive at a 
mutually satisfactory resolution of any matter that might affect its operation. 
3. This Chapter shall not apply to Articles 14(2), 16(1), 17(1), 18(3), 20, 24(1) and 81(1) and 
(2). 
  Article 88  
 
Choice Of Forum
 
 
1. Disputes on the same matter arising under bo th this Agreement and the WTO Agreement, or 
any agreement negotiated thereunder, to which the Parties are party, ma y be settled in either forum at 
the discretion of the complaining Party. The forum thus selected shall be used to the exclusion of the 
other. 
2. Once dispute settlement procedures have been initiated under this Agreement pursuant to 
Article 91 or dispute settlement proceedings ha ve been initiated under the WTO Agreement, the 
forum selected shall be used to the exclusion of the other.  
3. For the purposes of this Article, dispute se ttlement proceedings under the WTO Agreement 
are deemed to be initiated by a Party’s request for the establishment of a panel pursuant to Article 6 of 
the Understanding on Rules and Procedures  Governing the Settlement of Disputes. 
4. Before a Party initiates dispute settlement proceedings under the WTO Agreement against 
another Party or Parties, that Party shall notify all other Parties of its intention. 
Article 89 
 
Good Offices, Conciliation Or Mediation  
 
1. Good offices, conciliation and mediation are proced ures that are undertaken voluntarily if the 
Parties involved so agree. They may begin at any time and be terminated at any time.  WT/REG179/1 
 Page 37 
 
 
2. Proceedings involving good offices, conciliati on and mediation shall be confidential and 
without prejudice to the rights of th e Parties in any other proceedings.  
Article 90 
 
Consultations  
 
1. A Party may request in writing consultations with  another Party whenever it considers that a 
measure applied by that Party is inconsistent with this Agreement or that any benefit accruing to it 
directly or indirectly under this Agreement is impaired by such measure. The Party requesting 
consultations shall at the same time  notify the other Parties in writing thereof. Consultations shall take 
place before the Joint Committee unless the Party or Parties making or receiving the request for 
consultations disagree.  
2. Consultations shall be held within 30 days from the date of receipt of the request for 
consultations. Consultations on urgent matters, incl uding those on perishable agricultural goods, shall 
commence within 15 days from the receipt of the request for consultations. 
3. The Parties involved in the consultations shall pr ovide sufficient information to enable a full 
examination of how the measure is inconsistent w ith, or may impair the benefit accruing to them 
under this Agreement and treat any confidential or pr oprietary information exchanged in the course of 
consultations in the same manner as the Party providing the information. 
4. The consultations shall be confidential and with out prejudice to the rights of the Parties 
involved in any further proceedings. 
5. The Parties involved in the consultations shall inform the other Parties of any mutually agreed 
resolution of the matter. 
Article 91 
 
Establishment Of Arbitration Panel  
 
1. If the matter has not been resolved within 60 days, or 30 days in relation to a matter of 
urgency, after the date of receipt of the request for consultations, it may be referred to arbitration by 
one or more of the Parties involved by means of a written notification addressed to the Party or Parties 
complained against. A copy of this notification shall also be communicated to all Parties so that each 
Party may determine whether to participate in the dispute. 
2. Where more than one Party requests the establis hment of an arbitration panel relating to the 
same matter, a single arbitration panel should be established to examine these complaints whenever 
feasible. 
3. A request for arbitration shall give the reason for the complaint including the identification of 
the measure at issue and an indication of the legal basis of the complaint. 
4. A Party to this Agreement which is not a Part y to the dispute, on de livery of a written notice 
to the disputing Parties, shall be entitled to make wr itten submissions to the arbitration panel, receive 
written submissions of the disputing Parties, a ttend all hearings and make oral submissions. WT/REG179/1 
Page 38  
 
Article 92 
 
Arbitration Panel
 
 
1. The arbitration panel shall comprise three members. 
2. In the written notification pursuant to Article 91 , the Party or the Parties referring the dispute 
to arbitration shall designate one member of the arbitration panel.  
3. Within 15 days of the receipt of the notification referred to in paragraph 2, the Party or Parties 
to which it was addressed to shall designate  one member of the arbitration panel. 
4. The Parties to the dispute shall agree on the appoi ntment of the third arbitrator within 15 days 
of the appointment of the second arbitrator. The member thus appointed shall chair the arbitration 
panel. 
5. If all 3 members have not been designated or appointed within 30 days from the date of 
receipt of the notification referred to in paragraph 2, the necessary designations shall be made at the 
request of any Party to the dispute by the Direct or-General of the WTO within a further 30 days. 
6. The Chair of the arbitration panel shall not be a national of any of the Parties, nor have his or 
her usual place of residence in the territory of any of the Parties, nor be employed or previously have 
been employed by any of the Parties, nor  have dealt with the case in any capacity. 
7. If an arbitrator dies, withdraws or is removed, a replacement shall be selected within 15 days 
in accordance with the sel ection procedure followed to select him or her. In such a case, any time 
period applicable to the arbitration panel proceedi ngs shall be suspended for a period beginning on the 
date the arbitrator dies, withdraws or is removed and ending on the date the replacement is selected.  
8. The date of establishment of the arbitration panel shall be the date  on which the Chair is 
appointed. 
Article 93 
 
Procedures Of The Arbitration Panel  
 
1. Unless the Parties to the dispute agree otherwis e, the arbitration panel proceedings shall be 
conducted in accordance with the Model Rules of Procedure set out at Annex XVII. 
2. Unless the Parties to the dispute otherwise agree within 10 days from the date of delivery of 
the request for the establishment of the arbitr ation panel, the terms of reference shall be: 
"To examine, in the light of the re levant provisions of the Agreemen t, the matter re ferred to in the 
request for the establishment of an arbitration panel pursuant to Article 91 and to make findings of 
law and fact together with the reasons ther efore for the resoluti on of the dispute.” 
3. At the request of a Party to the dispute or on its own initiative, the arbitration panel may seek 
scientific information and technical advice from experts as it deems appropriate. Any information so 
obtained shall be submitted to the Parties for comments. 
4. The arbitration panel shall make its ruling base d on the provisions of  this Agreement, in 
particular in the light of its objectives as set out in Article 2, applied and interpreted in accordance 
with the rules of interpretation  of public international law.  WT/REG179/1 
 Page 39 
 
 
5. Decisions of the arbitration panel shall be take n by a majority of its members. Arbitrators may 
furnish separate opinions on matters not unanimou sly agreed. No arbitration panel may disclose 
which arbitrators are associated with  majority or minority opinions. 
6. The expenses of the arbitration panel, including the remuneration of its members, shall be 
borne by the Parties to the dispute in equal shares. 
Article 94 
 
Ruling  
 
1. The arbitration panel shall within 90 days from the date of the establishment of the arbitration 
panel present to the Parties to the dispute its ruling. 
2. The arbitration panel shall base its ruling on th e submissions and arguments of the Parties to 
the dispute and on any scientific information and technical advice pursuant to Article 93(3). 
3. Unless the Parties to the dispute decide otherwis e, the ruling shall be published 15 days after 
it is presented to them. 
Article 95 
 
Termination Of Arbitr ation Panel Proceedings  
 
 A complaining Party may withdraw its complaint at any time before the ruling has been 
issued. Such withdrawal is without prejudice to its right to introduce a new complaint regarding the 
same issue at a later point in time. 
 
Article 96 
 
Implementation Of Arbitration Panel Rulings  
 
1. The ruling shall be final and binding on the Parties to the dispute. Each Party to the dispute 
shall be bound to take the measures necessary to comply with the ruling referred to in Article 94. 
2. The Parties to the dispute shall endeavour to agree on the specific measures that are required 
for complying with the ruling. 
3. The Party complained against shall notify the othe r Party within 30 days after the ruling has 
been transmitted to the Parties to the dispute:  
(a) the specific measures required for complying with the ruling; 
(b) the reasonable period of time to do so; and 
(c) a concrete proposal of a temporary compensa tion until the full implementation of the 
specific measures required for compliance with the ruling. 
4. In case of disagreement between the Parties to the dispute on the content of such notification, 
the complaining Party may request the original ar bitration panel to rule on whether the proposed 
measures referred to under paragraph 3(a) are in compliance with the ruling, on the duration of the 
period of time and on whether the compensation proposal is manifestly disproportionate. The ruling 
shall be given within 45 days after that request. WT/REG179/1 
Page 40  
 
5. The Party or Parties concerned shall notify to th e other Party or Parties to the dispute and the 
Joint Committee the measures adopted in order to  implement the ruling before the expiry of the 
reasonable period of time determined in accordan ce with paragraph 4. Upon that notification, any 
Party to the dispute may request the original arbitr ation panel to rule on the conformity of those 
measures with the ruling. The ruling of the arbitratio n panel shall be given within 45 days from that 
request. 
6. If the Party or Parties concerned fails to notify the implementing measures before the expiry 
of the reasonable period of time determined in acco rdance with paragraph 4, or if the arbitration panel 
rules that the implementing measures notified by th e Party or Parties concerned are not in compliance 
with the ruling, such Party or Par ties shall, if so requested by the complaining Party or Parties, enter 
into consultations with a view to agree on a mutually acceptable compensation. If no such agreement 
has been reached within 20 days from the request, the complaining Party or Pa rties shall be entitled to 
suspend only the application of bene fits granted under this Agreement equivalent to those affected by 
the measure found to be inconsistent with, or  to impair benefits under, this Agreement. 
7. In considering what benefits to suspend, the co mplaining Party or Partie s should first seek to 
suspend benefits in the same sector
11 or sectors as that affected by the measure that the arbitration 
panel has found to be inconsistent with, or to impa ir benefits under, this Agreement. The complaining 
Party or Parties that consider it is not practicable or effective to suspe nd benefits in the same sector or 
sectors may suspend benefits in other sectors. 
8. The complaining Party or Parties shall notify the other Party or Parties of the benefits which it 
intends to suspend no later than 60 days before th e date on which the suspension is due to take effect. 
Within 15 days from that notification, any of th e Parties to the dispute may request the original 
arbitration panel to rule on whether the benefits which the complaining Part y or Parties intend to 
suspend are equivalent to those affected by the meas ure found to be inconsistent with, or to impair 
benefits under, this Agreement, and whether th e proposed suspension is in accordance with 
paragraphs 6 and 7. The ruling of th e arbitration panel shall be given within 45 days from that request. 
Benefits shall not be suspen ded until the arbitration panel has issued its ruling.  
9. The suspension of benefits shall be temporary and shall only be applied by the complaining 
Party or Parties until the measure found to be incons istent with, or to impair benefits under, this 
Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or 
the Parties to the dispute have reached ag reement on a resolution of the dispute. 
10. At the request of any of the Parties to the disput e, the original arbitrati on panel shall decide on 
the conformity with the ruling of any implementing measures adopted after the suspension of benefits 
and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The 
ruling of the arbitration panel shall be given w ithin 30 days from the date of that request. 
11. The rulings provided for in this Article shall be binding.  
  Article 97  
 
Other Provisions  
 
1. Any time period mentioned in this Chapter may be extended by mutual agreement of the 
Parties involved. 
                                                      
11 For the purpose of this Article, with respect to g oods ‘sector’ shall mean good s classified in Chapters 
1 to 97 of the HS.  WT/REG179/1 
 Page 41 
 
 
2. Hearings of the arbitration panels shall be cl osed to the public, unless the Parties decide 
otherwise. 
 
CHAPTER XI : GENERAL EXCEPTIONS 
 
Article 98 
 
Balance Of Payments Difficulties  
 
1. Where a Party is in serious balance of payments  and external financial difficulties, or under 
threat thereof, it may adopt or maintain restrictive measures with regard to trade in goods and in 
services and with regard to payments and capita l movements, including those related to direct 
investment. 
2. The Parties shall endeavour to avoid the applicatio n of the restrictive measures referred to in 
paragraph 1. 
3. Any restrictive measure adopted or  maintained under this Article shall be non-discriminatory 
and of limited duration and shall not go beyond what  is necessary to remedy the balance of payments 
and external financial situation. Such a measure shal l be in accordance with the conditions established 
in the WTO Agreements and consistent with the Arti cles of Agreement of the International Monetary 
Fund, as applicable. 
4. The Party maintaining or having adopted restri ctive measures, or any changes thereto, shall 
promptly notify them to the other Parties and presen t, as soon as possible, a time schedule for their 
removal. 
5. The Party applying restrictive measures shall consult promptly within the Joint Committee. 
Such consultations shall assess the balance of payments situation of the Party concerned and the 
restrictions adopted or maintained under this Article, taking into account, inter alia , such factors as:  
(a) the nature and extent of the balance of  payments and the external financial 
difficulties; 
(b) the external economic and trading en vironment of the consulting Party; 
(c) alternative corrective measures which may be available. 
 The consultations shall address the compliance of  any restrictive measures with paragraphs 3 
and 4. All findings of statistical and other facts pr esented by the International Monetary Fund relating 
to foreign exchange, monetary reserves and balanc e of payments shall be accepted and conclusions 
shall be based on the assessment by the Internatio nal Monetary Fund of the balance of payments and 
the external financial situation of the consulting Party.  
Article 99 
 
National Security Clause
 
 
1. Nothing in this Agreement shall be construed:  
(a) to require a Party to furnish any informa tion the disclosure of which it considers 
contrary to its essential security interests; WT/REG179/1 
Page 42  
 
(b) to prevent a Party from taking any action which it considers necessary for the 
protection of its essential security interests 
(i) relating to fissionable and fusionable materials or the materials from which 
they are derived; 
(ii) relating to the traffic in arms, ammuniti on and implements of war and to such 
traffic in other goods and materials or relating to the supply of services, as carried on directly or indirectly for the purpose of supplying or provisioning a 
military establishment; 
(iii) relating to the government procur ement of arms, ammunition or war 
materials or procurement indispensable for national security or for national 
defense purposes; or 
(iv) taken in time of war or other emer gency in international relations; or 
(c) to prevent a Party from taking any action in pursuance of its obligations under the 
United Nations Charter for the maintenance of international peace and security. 
2. The Joint Committee shall be informed to the fullest extent possible of measures taken under 
paragraphs 1(b) and (c) and of their termination.  
  Article 100  
 
Taxation
 
 
1. Nothing in this Agreement shall apply to taxation measures except: 
(a) Article 15, and such other provisions of this Agreement as are necessary to give effect 
to that Article to the same extent as  does Article III of the GATT 1994; and 
(b) with regard to taxation measures applicable in Section I of Chapter III, where Article 
XIV of the GATS applies. 
2. Nothing in this Agreement shall affect the ri ghts and obligations of any Party under any tax 
convention. In the event of any inconsistency betw een this Agreement and any such convention, that 
convention shall prevail to the extent of the inconsistency. 
 
CHAPTER XII : FINAL PROVISIONS 
 
  Article 101  
 
Definitions  
 
 For the purposes of this Agreemen t, unless otherwise specified:  
  “days”  means calendar days; 
 
 “measure”  includes inter alia  any law, regulation, procedure,  requirement or practice; and 
 
 “Party”  means any State regarding which this  Agreement has entered into force.  WT/REG179/1 
 Page 43 
 
 
  Article 102  
 
  Annexes And Appendices  
 
 The Annexes and Appendices to this Agreemen t constitute an integral part thereof.  
 
Article 103 
 
Amendments  
 1. The Parties may agree on any amendment to th is Agreement. Unless the Parties decide 
otherwise, the amendments shall enter into force on the first day of the third month following the 
deposit of the last instrument of ratification, acceptance or approval. 
2. Notwithstanding paragraph 1, with respect to decisions of the Joint Committee amending the 
Annexes and Appendices to this Agreement, Article 85(5) shall apply. Such decisions shall enter into 
force on the date that the last Party notifies that  its internal requirements have been fulfilled, unless 
the decision itself specifies a later date. The Join t Committee may decide that any decision shall enter 
into force for those Parties that have fulfilled their internal requirements, provided that Chile is one of 
those Parties. An EFTA State may apply a decisi on of the Joint Committee provisionally until such 
decision enters into force, subject to its constitutional requirements.  
3. The text of the amendments shall be deposited with the Depositary. 
  Article 104  
 
Additional Parties
 
 
 Any third State may, upon invitation by the Joint Committee, become a Party to this Agreement. The terms and conditions of the accession  of the additional Party shall be the subject of 
an agreement between the Parties and the invited State. 
 
Article 105 
 
Withdrawal And Termination
 
 1. Any Party to this Agreement may withdraw th erefrom by means of a written notification to 
the Depositary. The withdrawal shall take effect on the first day of the sixth month after the date on 
which the notification was received by the Depositary. 
2. If one of the EFTA States withdraws from this Agreement, a meeting of the remaining Parties 
shall be convened to discuss the issue of the continued existence of this Agreement. 
  Article 106  
 
Entry Into Force
 
 1. This Agreement is subject to ratification, acceptance or approval. The instruments of 
ratification, acceptance or approval shal l be deposited with  the Depositary. 
2. This Agreement shall enter into force on 1 February  2004 in relation to those Signatory States 
which by then have ratified, accepted or approved  the Agreement, provided they have deposited their 
instruments of ratification, acceptance  or approval with the Depositary at least 30 days before the date WT/REG179/1 
Page 44  
 
of entry into force, and provided that Chile is among the States that have deposited their instruments 
of ratification, acceptance or approval. 
3. In case this Agreement does not enter into force on 1 February 2004, it shall enter into force 
on the first day of the first month following the latter deposit of the instruments of ratification, 
acceptance or approval by Chile and at least one EFTA State. 
4. In relation to an EFTA State de positing its instrument of ratifi cation, acceptance or approval 
after this Agreement has entered into force, this Agreement shall enter into force on the first day of 
the third month following the deposit of its instrument. 
5. If its constitutional requirements permit, any EFTA State may apply this Agreement 
provisionally. Provisional application of this Agre ement under this paragraph shall be notified to the 
Depositary. 
Article 107 
 
Relation To The Complementary Agreements
 
 
1. The complementary agreement on trade in agri cultural goods between an EFTA State and 
Chile referred to in Article 1 shall enter into force on the same date for that EFTA State and Chile as 
this Agreement enters into force. The complementar y agreement shall remain in force as long as the 
Parties to it remain Parties to this Agreement. 
2. If an EFTA State or Chile withdraws from th e complementary agreement, this Agreement 
shall terminate between that EFTA State and Chile on the same date as the withdrawal from the 
complementary agreement becomes effective.  
Article 108 
 
Depositary  
 
 The Government of Norway shall act as Depositary. 
 
 
 IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this 
Agreement. 
 
 Done at Kristiansand, this 26th day of June 2003, in a single authentic copy in the English 
language which shall be deposited with the Government of Norway. The Government of Norway shall 
transmit certified copies to all Signatory States to this Agreement. 
  
 For the Republic of Iceland      For the Republic of Chile 
  
 For the Principality of Liechtenstein 
 
 For the Kingdom of Norway 
 
 For the Swiss Confederation 
 
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