. /.   WORLD TRADE  
ORGANIZATION  WT/REG164/9/Rev.1 
11 December 2007 
 (07-5494) 
Committee on Regional Trade Agreements Original:   English 
  
 
ASSOCIATION AGREEMENT BETWEEN THE 
EUROPEAN COMMUNITIES AND CHILE, SERVICES 
 
Questions and Replies
 
 
Revision  
   The following communication, dated 30 November 2007, is being circulated at the request of 
the delegations of the European Communities and Chile. 
 
 This document reproduces the questions addressed to the Parties and the responses submitted.  
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 Questions from the Delegation of Canada
 
 
 
1. According to paragraph 15, Chapter I – Servic es – covers all four modes of supply, as 
defined in the GATS mutatis mutandis, with Chapter III – Establishment – dealing with 
establishment of non-services sectors. Why did th e Parties not consider a separate Investment 
Chapter to capture both Mode 3 (Commercia l Presence in services) and other investment-
related matters affecting non-services sectors? 
 At the time of negotiating the agreement, this  was the option that was retained among several 
others.  2. With the inclusion of Mode 4 under Chapter I, do the Parties consider temporary issue 
as solely a services issue, rather than both a services and investment issue that would warrant a 
stand-alone chapter?  
Temporary movement of natural persons who supply services as employees of juridical 
persons or as independent prof essionals is only a services issue. Temporary movement of key 
personnel is both a services and an establishment in non-services sector issue and is addressed in both 
Chapters.  At the time of negotiating the agreement,  the option chosen by the parties was to treat the 
issue separately for each Chapter. 
3. Paragraph 16 indicates that, as opposed to the GATS, the criteria of ownership or 
control is not used in this agreement to determ ine the origin of a legal person? Could the EC 
and Chile elaborate further on the definition of a legal person included in this agreement and 
provide the rationale for using such a definition?   
The definition of juridical person of a Party is  based on Article 48 of the EC Treaty. This 
definition is similar to the one of GATS Article XXVIII (m) (i). According to the respective legal WT/REG164/9/Rev.1 
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  orders, a juridical person constituted in accordance with the laws of the EC Member States or of 
Chile, respectively, and having a continuous and ef fective link with the economy of the EC or of 
Chile, respectively, is an EC or a Chile juridical pe rson respectively, even if it is owned or controlled 
by a natural or juridical person of the other Party. 
4. Paragraph 21 states that the Agreement does not contain an MFN provision, except with 
respect to commercial presence of international ma ritime service suppliers of the other Party. 
Please explain why both Parties were not rea dy to provide comprehensive MFN treatment 
under their agreement? 
Taking into account that the Parties already provide to each other MFN treatment under the 
GATS and in the light of the level of liberalisation reached through the FTA, the Parties opted for not 
including other MFN provisions therein. 
5. Paragraph 30 indicates that the schedule of  the Agreement contains a few limitations 
that do not appear in the GATS schedule. Woul d this mean a GATS-minus agreement in some 
respects? If yes, what is the rationale for maki ng GATS-minus commitments in the context of 
this specific agreement? 
 GATS Article V requires a) substantial sectoral coverage and b) absence or elimination of 
substantially all discrimination. The few limitati ons that did not appear in GATS were included 
because of a large number of commitments covered by these countries in comparison with the GATS. 
In the areas covered by GATS commitments they are not applied.  
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