WORLD TRADE  
ORGANIZATION  WT/REG263/1  
1 April 2010 
 (10-1784) 
Committee on Regional Trade Agreements  
  
 
   
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between Australia and Chile 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Free Trade Agreement between 
Australia and Chile has been drawn up  by the WTO Secretariat on its own 
responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rul es and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Jean-Daniel Rey (tel: +41 22 739 52 64).  WT/REG263/1 
 Page iii 
 
 
  TABLE OF CONTENT 
 
 
  Page 
I. TRADE ENVIRONMENT  1  
A. MERCHANDISE TRADE  1  
B. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT  10  
A. BACKGROUND INFORMATION  10  
B. STRUCTURE OF THE AGREEMENT  10  
III. TRADE IN GOODS  12 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  12  
1. General Provisions 12  
2. Liberalization of trade and tariff lines 12  
(a) Australia's liberalization schedule 13  
(b) Chile's liberalization schedule 15  
3. Administrative Fees and Formalities 17  
4. Import Restrictions 18  
B. RULES OF ORIGIN  18  
C. CUSTOMS VALUATION  19  
D. SPECIAL REGIMES  20  
E. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  20  
1. Administrative Fees and Formalities 20  
2. Export restrictions 20  
F. REGULATORY PROVISIONS ON TRADE IN GOODS  20  
1. Sanitary and Phytosanitary Measures (SPS) 20  
2. Technical Regulations, Standards and Conformity Assessment Procedures 
(TBT) 21  
3. Trade Remedies 22  
4. Safeguard measures 22  
(a) Global safeguards 22  
(b) Balance-of-Payments Safeguards 22  
(c) Anti-dumping and countervailing measures 23  
5. Subsidies and State-aid 23  
G. CUSTOMS -RELATED PROCEDURES  23  
H. SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  24  
IV. TRADE IN SERVICES AND INVESTMENT  24  
A. SCOPE AND DEFINITIONS  24  
B. DENIAL OF BENEFITS  25  
C. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  25  
1. Cross border trade in services 25  
(a) National and MFN treatment 25  
(b) Market access 26  
(c) Commercial presence 26  
2. Investment 26  WT/REG263/1 
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  (a) National and MFN Treatment 27  
(b) Performance requirements 27  
(c) Senior management and boards of directors 27  
3. Movement of natural persons 27  
D. LIBERALIZATION COMMITMENTS IN SERVICES AND INVESTMENT  28  
1. Non-conforming measures 29  
(a) Australia 30  
(b) Chile 33  
E. SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  39  
1. Telecommunication services 39  
2. Financial Services 39  
F. REGULATORY PROVISIONS ON TRADE IN SERVICES  43  
1. Domestic regulation 43  
2. Recognition 43  
G. SAFEGUARD ACTIONS ON SERVICES AND INVESTMENT  44  
V. GENERAL PROVISIONS OF THE AGREEMENT  44  
A. TRANSPARENCY  44  
B. EXCEPTIONS  44  
C. TAXATION  45 
D. ACCESSION AND TERMINATION  45  
E. GOVERNMENT PROCUREMENT  45  
F. INTELLECTUAL PROPERTY RIGHTS  46  
G. ELECTRONIC COMMERCE  47  
H. DISPUTE SETTLEMENT  48  
I. INSTITUTIONAL FRAMEWORK  50  
J. OTHER  51 
1. Competition Policy 51  
2. Cooperation 52  
K. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  52  
ANNEX I 54 
 
  WT/REG263/1 
 Page 1 
 
 
  I. TRADE ENVIRONMENT 
1. The Free Trade Agreement between Australia and Chile (hereinafter referred to as the 
Agreement) is Australia's seventh  and Chile's twenty-sixth RTA.1  The Agreement is Australia's first 
with a Latin American country. 
2. In 2008, Australia's GDP, with a popula tion of 21.4 million, was estimated at 
US$1,015 billion while that of Chile, with a population of 16.7 millions, was estimated at 
US$163 billion.  With total merchandise exports of US$187,259 million2, Australia was the world's 
17th largest exporter3 and, with total merchandi se imports of US$200,338 million4, the world's 
14th largest importer in 2008 compared to Chile's ranking as 33rd and 27th exporter and importer 
respectively (with merchandise exports of US$66, 456 million and imports of US$61,903 million).  In 
commercial services, while Australia ranked 12th  in terms of both exports and imports 
(US$45,601 million and US$45, 491 million respectively), Chile ranked 30th and 33rd for exports 
(US$10,645 million) and imports (US$11,143 million).  Australia's trade to GDP ratio at 
46.1 averaged over 2006-2008 is relatively similar to that of Chile at 44.7, while the structure of exports and imports of the two economies is similar with fuels and mining accounting for over half of 
exports and manufactures accounting for the majority of  imports, giving an indication of the Parties' 
trade and economic situations.
5 
A. MERCHANDISE TRADE6 
3. Merchandise trade between the two partners remain s relatively small.  In  2008, Australia was 
Chile's 24th largest source of imports, accounting for 0.5% of Chile's total imports.7  It was also Chile's 
24th largest export market, accounting for 0.7% of Chile's total exports.8  Chile was Australia's 40th 
largest source of imports, accounting fo r 0.3% of Australia's total imports.9  Chile was also Australia's 
43rd largest trading partner in terms of exports  from Australia, in 2008, accounting for 0.2% of 
Australia's total exports.10 
4. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2.11 
Over the period surveyed (1997-2008), Australia has r un a consistent trade deficit in terms of global 
trade.  Between 1997 and 2006 it maintained a trad e surplus with Chile (with the exception of 2003 
when Australian imports from Chile overtook its expor ts to Chile).  In 2007, however, a notable shift 
                                                      
1 Agreements on goods and services counted as on e and only agreements in force, notified and 
non notified to the WTO, counted. 
2 Export figures are calculated f.o.b. 
3 For this paragraph:  ranking in world trade excluding intra-EU trade. 
4 Import figures are calculated c.i.f. 
5 Source: WTO Statistics Database as incorporated into the WTO Trade Profiles 2009 (2008 data). 
6 Source: WTO international trade statistics, 2009. 
7 The five top sources of imports from Chile during the same period being the USA (17%), the 
EU (14%), China (11.4%), Brazil (10.5%), and Argentina (10.1%). 
8 The five top destinations for exports from Chile during the same period being the EU (24.5%), China 
(15.2%), the USA (12.8%), Japan (10.8%), and Korea (5.9%) 
9 The five top sources of imports from Australia during the same period being the EU (21%), China 
(15.6%), the USA (12%), Japan (9%), and Singapore (7.2%). 
10 The five top destinations for exports from Austra lia during the same period being Japan (22.8%), 
China (14.6%), the EU (10.5%), Korea (8.3%) and India (6.1%). 
11 Though notable discrepancies can be noticed between import and export statistics as reported in the 
UNSD Comtrade database, general orders of magnitude and trends provide for a useful set of information. 
Possible explanations for the discrepancies may include: (i) third-country transhipme nt; (ii) exchange rate 
fluctuations; (iii) export of goods appearing in one reporting period and import in a subsequent period; 
(iv) comprehensive records of imports being kept from Customs and tariff purposes, but less comprehensive 
records being kept for exports; etc. WT/REG263/1 
Page 2  
 
  took place in bilateral trade relations.  While Austra lian exports to Chile have  continued to expand 
steadily, as a result of a sharp increase in Australia 's imports from Chile in 2007 and especially in 
2008, the bilateral balance of trade has moved into deficit.  Chile's overall balance of trade in goods 
has been in surplus since 1999 and since 2003 this deficit continues to be widening.   
020406080100120140160180200
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080150300450600750900US$billion US$millionChart I.1 - Australia: Merchandise  imports from and exports to 
world and Chile, 1997-2008
Source :  UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
020406080100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080150300450600750900US$billion US$millionChart I.2 - Chile: Merchandise imports from and exports to world 
and Australia, 1997-2008
Source : UNSD, Comtrade database.Imports from Australia
Exports to AustraliaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
  WT/REG263/1 
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  5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2006-2008, is shown in Ch art I.3 on the basis of Harmonized System (HS) 
sections.  
6. Minerals, machinery and vehicles accounted for ove r half of both Australia and Chile's global 
imports.   
7. Of Australia's largest exports of minerals and metals which accounted for 53.5% of its global 
exports in 2006-2008, Chile imported mainly minera ls which accounted for 48.2% of its imports from 
Australia;  imports of machinery, which is not a major Australian export, accounted for over 20% of 
Chile's imports from Australia.  In 2006-08, 65.9% of  Chile's exports were accounted for by metals 
and minerals, the first of which also accounted for over half (58.4%) of Australia's imports from 
Chile.  Other important imports were wood pulp a nd wood which together accounted for 17.7% of its 
imports from Chile.  These figures have to be put in the perspective of the relatively small share of 
bilateral trade between the two pa rtners (see paragraph 3 above).  
8. A further breakdown of bilateral and global trad e by HS Chapter shows that Australia's four 
largest global exports product categories - mineral products , base metals and articles thereof , 
products of chemical or allied industries , and natural and cultured pearls  – made up 67.5% of its 
global exports in 2006-2008 and accounted for 59.4% of  Chile's imports from Australia.  In terms of 
market penetration by Australian exports in Chile, live animals and animal products , Australia's third 
largest global export, had the highest market share of total Chilean imports at 3.9%.  Optical, 
photographic equipment  accounted for 1.2%, while each of the other sectors accounted for less than 
1% of Chile's imports.  For each sect or individually, the Chilean market  represents less than 1% of 
Australia's exports to the world.  Australian exports  in all the sectors together represented 0.5% of 
Chile's global imports.  
9. Chile's four largest global exports product categories - base metals and articles thereof , 
prepared foodstuffs and beverages , mineral products , and live animals  and animal products  - made 
up 77.2% of Chile's total global e xports in 2006-2008 and accounted fo r 66.9% of Australia's imports 
from Chile.  In terms of market penetr ation by Chilean exports in Australia, base metals and articles 
thereof , Chile's largest global export product category, had the highest share of Australia's global 
imports at 2.1% as did wood and articles of wood , Chile's 8th largest global export;  two other sectors 
account for slightly more than 1% of Australian impo rts while all the other sectors have a share of less 
than 1%.  For each sector individua lly, but one, the Australian market  represents a share of Chile's 
exports to the world inferior to 2%12.  Chile's total exports to Australia  represented 0.2% of Australia's 
global imports, during the period 2006-2008.13 
                                                      
12 In contrast, for works of art, Chile's least impor tant global export, the Australian market represents 
9.4% of Chile's exports to the world, a penetration rate considerably higher than for other sectors. This might however be a "one-off" export and therefore not a regular feature of bilateral trade. 
13 3% in 2008. WT/REG263/1 
Page 4  
 
  Chart I.3
Australia and Chile: product compos ition of merchandise trade, annual 
average 2006-2008
Australia's imports from Chile Chile's imports from Australia
 Sources:  UNSD, Comtrade database.Per cent
Total:  US$328 million Total:  US$245 million
Total:  US$160 billion Total: US$45 billion
Total:  US$150 billion Total:  US$64 billionAustralia's global exports Chile's global exportsAustralia's global imports Chile's global imports 
Pulp of wood 4.2Prepared foods 2.8
Minerals
44.4Other 
10.3Metals 6.0
Chemicals 3.9
Prepared foods 5.6 Textiles 3.5
Precious stones 6.9Other 
4.1 Other 4.2
Animals products 
5.7Other 
5.7
Textiles 4.0Optical 3.7
Vegetables 3.7Minerals 14.6Plastics 4.8Minerals 48.2Chemicals 5.7
Chemicals  8.5Chemicals 5.6
Metals 5.6
Minerals 29.8Metals 56.4
Textiles 2.0Metals 5.5
Vehicles 10.4Plastics 3.9
Prepared foods 3.8Prepared foods 2.9
Vegetables 5.3Miscellaneous 2.9
Machinery 21.2
Metals 38.8Optical 3.6
Machinery
26.1
Precious stones
4.6
Minerals 27.1Plastics 1.8
Animal products 
9.3Minerals 3.6
Vegetables 4.5
Prepared foods 6.1
Wood 6.7
Pulp of wood 11.0
Machinery 20.2Plastics 3.3
Vehicles 
15.2
Chemicals  9.4Vegetables 2.4Pulp of wood  1.8Other 
6.7
Wood 3.2Other 
6.2Pulp of wood 2.1
Metals 9.1Chemicals 7.1Animal products 6.2Machinery 4.7Vehicles 3.0Optical 1.6
 
  WT/REG263/1 
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  B. TRADE IN SERVICES AND INVESTMENT  
10. Chart I.4 shows the breakdown of commercia l services trade for Australia in 2000-2008 
Australia was a net exporter of commercial ser vices over the period surveyed.  Travel and 
transportation services accounted for the largest shares of both imports and exports of commercial 
services, with a steady increase in both imports a nd exports of commercial services trade during this 
period. 
01020304050
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: no import data of Construction.
Source: International Monetary Fund.Chart I.4
Australia, total commercial services trade, 2000-2008
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
 
 
  
 
     
 
    
 
  WT/REG263/1 
Page 6  
 
  11. Chart I.5 shows the breakdown of commercial ser vices trade for Chile in 2000-2008.  Chile 
was a net importer of commercial services over th e period surveyed.  Transportation services 
accounted for the largest shares of imports and of  exports.  Commercial services trade has increase 
during the period under survey, both in terms of im ports and exports to re ach in 2008 a level more 
than double than in 2000 both for imports and for exports.  
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
US$ 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Chile authorities.Chart I.5
Chile, total commercial s ervices trade, 2000-2008
US$ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
Insurance services Government services
 
 
   
 
     
 
    
  WT/REG263/1 
 Page 7 
 
 
  12. Australia's bilateral commercial services tr ade with Chile over the period 2001-2008 is 
depicted in Chart I.6.14  Despite a sustained increase in both imports and exports of services between 
the two Parties over the period considered, Austra lia's deficit with Chile doubled in value. 
020406080100120140160180200220
Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Source: ABS Cat No. 5368.0 International Trade in Goods and Services, Australia.Chart I.6
Australia, bilateral commercial se rvices trade wi th Chile, 2001-2009
US$ million
 
                                                      
14 Based on data provided by Australia only. WT/REG263/1 
Page 8  
 
   
13. Australia's global investment position is depicted in Chart I.7.  While a net recipient of FDI, 
Australia has significant outward foreign investment  as well.  The stock of both inward and outward 
FDI has fluctuated over 2000-2008, while showing an  increasing trend and a peak in 2007 for both 
inward and outward FDI.  In 2008, the stock of inward FDI was 2.5 times higher than in 2000 while 
outward FDI was twice its value in 2000. 
050100150200250300350
2000 2001 2002 2003 2004 2005 2006 2007 2008050100150200250300350
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.7
Australia, inward and outward foreign investment stock with world, 2000-2008
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
 
14. Chile's global investment position is depicted in Chart I.8.  While its overall stock of FDI is 
relatively smaller than that of Australia, it h as increased substantially over the period, while its 
outward stock, at a more modest level, has also increased annually.   WT/REG263/1 
 Page 9 
 
 
  0306090120150
2000 2001 2002 2003 2004 2005 2006 2007 20080306090120150
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.8
Chile, inward and outward foreign inve stment stock from world, 2000-2008
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
 
15. Table I.1 and I.2 show inward FDI in Austra lia from Chile and in Chile from Australia, 
respectively, during the period 2001-2007, as reported by the Australian Bureau of Statistics.  The 
data available for Australia's investment abroad s hows a regular increase over the period examined.  It 
is however difficult to assess the evolution of th e bilateral investment-related relation between 
Australia and Chile considering the absence of clear data15.  
Table I.1.   
Foreign investment in Australia by Ch ile, by type of investment and year 
US$ million  
Investment 2001 2002 2003 2004 2005 2006 2007 2008 
Foreign investment in Australia n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. 
Direct investment in Australia - - - - - 0.8 n.p. - 
Direct investment in Australia, Equity capital and 
reinvested earnings - - - - - - - - 
Direct investment in Australia, Other capital - - - - - 0.8 n.p. - 
Portfolio investment liabilities - - - - n.p. - - - 
Portfolio investment liabilities, Equi ty securities - - - - n.p. - - - 
Portfolio investment liabilities, Debt securities - - - - - - - - 
Financial derivative liabilities n.p. n. p. n.p. - n.p. n.p. n.p. n.p. 
Other investment liabilities 1.0 1.1 0.6 n.p. n.p. n.p. n.p. 2.5 
Total equity - - - - n.p. - - - 
Total debt n.p. n.p. n.p. n.p. 92.4 n.p. n.p. n.p. 
 
 
  
                                                      
15 It is not unusual that published statistics on FDI do not incorporate all investments as some might 
have to be restricted for reasons of confidentiality, particularly when the level of investment is low and could 
relatively easily allow for the identification of the investor. WT/REG263/1 
Page 10  
 
   
Table I.2.   
Foreign investment in Chile by Austra lia, by type of investment and year 
US$ million  
Investment 2001 2002 2003 2004 2005 2006 2007 2008 
Australian investment abroad 119.5 140.2 137.5 161.8 220.7 758.3 1,441.8 1,701.9 
Direct investment abroad n.p. n.p. n.p. 90.5 68.7 n.p. 800.8 886.6 
Direct investment abroad, Equity capital and 
reinvested earnings 72.4 76.1 74.6 94.9 68.7 341.9 n.p. n.p. 
Direct investment abroad, Other capital n.p. n.p. n.p. 4.4 - n.p. n.p. n.p. 
Portfolio investment assets n.p. 3.8 5.8 n.p. n.p. n.p. 61.1 97.3 
Portfolio investment assets, Equity secur ities n.p. 3.8 3.2 3.7 n.p. 18.1 n. p. n.p. 
Portfolio investment assets, Debt secur ities - - 1.9 n.p. n.p.  n.p. n.p. n.p. 
Financial derivative assets - - n.p. - n.p. n.p. n.p. n.p. 
Other investment assets n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. 
Reserve assets - - - - - - - - 
Total equity n.p. 79.9 77.8 98.5 n.p. 359.9 816.7 948.7 
Total debt 40.3 65.2 69.4 84.6 158.8 n.p. n.p. n.p. 
np – not published 
 
Source:  Australian Bureau of Statistics. 
 
 II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
16. On 8 December 2006, Australia and Chile agreed  to commence bilateral negotiations with a 
view to developing a comprehensive FTA to stre ngthen and deepen their trade relationships.  
Negotiations started in August 200 7.  Four negotiating rounds a nd two intercessional meetings on 
specific issues took place between August 2007 and April 2008.  Negotiations were concluded on 
27 May 2008. 
17. The Free Trade Agreement between Australia and Chile (the Agreement) was signed on 
30 July 2008.  It entered into force on 6 March 2009, following an exchange of diplomatic notes on 
4 February 2009. 
18. The Parties jointly notified the goods and ser vices aspects of the Agreement to the WTO on 
3 March 2009, in document WT/REG263/N/1 – S/C/N/ 484.  The notification was made pursuant to 
Article XXIV:7(a) of GATT 1994 for goods, and pursu ant to Article V:7(a) of GATS for services. 
The text of the Agreement, together  with its Annexes, are available on the Parties' official websites: 
Australia: 
http://www.austlii.edu.au/au/other/dfat/treaties/2009/6/  (in English and Spanish) 
Chile:  
http://www.direcon.cl/index. php?accion=tlc_australia  (in Spanish) 
B. STRUCTURE OF THE AGREEMENT  
19. The Agreement is composed of 23 Chapters and has various annexes – either within the 
respective chapter or attached to  the Agreement.  Side Letters complement the relevant legal 
instruments.   WT/REG263/1 
 Page 11 
 
 
  Box II.1:  Outline of the Agreement 
Chapters, Annexes 
and Side Letters Title/description 
Preamble  
Chapter 1 Initial Provisions 
Chapter 2 General Definitions 
 - Annex 2-A – Country-Specific Definitions 
Chapter 3 National Treatment and Market Access for Goods 
 - Annex 3-A – Exceptions to Elimination of Import and Export Restrictions 
 - Annex 3-B – Elimination of Customs Duties:  
 Section 1: Schedule of Australia 
 Section 2: Schedule of Chile 
Chapter 4 Rules of Origin 
 - Annex 4-A – Minimum Requirements for a Certificate of Origin 
 - Annex 4-B – Example of a Certificate of Origin 
 - Annex 4-C – Rules of Origin Schedule 
Chapter 5 Customs Administration 
Chapter 6 Sanitary and Phytosanitary Measures 
Chapter 7 Technical Regulations, Standard s and Conformity Assessment Procedures 
Chapter 8 Trade Remedies 
Chapter 9 Cross-Border Trade in Services 
 - Annex 9-A – Professional Services 
Chapter 10 Investment 
 - Annex 10-A – Customary International Law 
 - Annex 10-B – Expropriation 
 - Annex 10-C – Transfers 
 - Annex 10-D – DL 600 
 - Annex 10-E – Termination of the Bilateral Investment Agreement 
 - Annex 10-F – Service of Documents on a Party under Section B 
Chapter 11 Telecommunications 
Chapter 12 Financial Services 
 - Annex 12-A – Cross-Border Trade 
 - Annex 12-B – Annex on Specific Commitments 
 - Annex 12-C – Authorities Responsible for Financial Services 
Chapter 13 Temporary Entry for Business Persons 
 - Annex 13-A – Temporary Entry for Business Persons 
Chapter 14 Competition Policy 
Chapter 15 Government procurement 
 - Annex 15-A 
Chapter 16 Electronic Commerce 
Chapter 17 Intellectual Property 
Chapter 18 Cooperation 
Chapter 19 Transparency 
 - Annex 19-A – Contact Points 
Chapter 20 Institutional Arrangements 
Chapter 21 Dispute Settlement 
Chapter 22 General Provisions and Exceptions 
Chapter 23 Final Provisions 
Non-Conforming 
Measures - Annex I – Cross-Border Trade in Services and Investment 
 - Annex II – Cross-Border Trade in Services and Investment 
 - Annex III – Financial Services 
Side Letters - Side Letter on Beef Grading 
 - Side Letter on Rules of Origin Certification 
 - Side Letter on Education Services (applies also to Investment Chapter) 
 - Side Letter on Wine 
Source: WTO Secretariat, based on the Agreement. WT/REG263/1 
Page 12  
 
  III. TRADE IN GOODS 
A. I
MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General Provisions 
20. Each Party accords national treatment to the goods of the other Party in accordance with 
Art. III of the GATT 1994.  To avoid any misinter pretation of the concept of National Treatment, 
Art. III of the GATT 1994 is made part of the Agreement mutatis mutandis (Art. 3.3).  
2. Liberalization of trade and tariff lines 
21. Art. 3.4 describes the modalities for tariff elim ination in accordance with the schedule in 
Annex 3-B to be read in parallel with Australia's and Chile's Schedules of tariff concessions attached 
to the Agreement. 
22. The elimination of tariffs applicable between  the Parties is detailed in the corresponding 
Parties' schedules.  Tariff elimination started on 6 March 2009, from the base rates contained in the 
respective Schedules, which correspond to the applie d MFN rate in 2008.  All remaining tariffs on 
both sides will be eliminated16 by year six from entry into force of the Agreement (2015), as indicated 
in the parties' respective Schedules and as foreseen in Annex 3-B.  The Agreement foresees that the 
Parties may consult to consider accelerating the e limination of customs duties (Art. 3.4.3) and/or 
accelerate unilaterally such elimination (Art. 3.4.4). 
23. The overall tariff elimination under the Agreem ent is depicted in Tables III.1.A and III.1.B 
below.  
24. Table III.1.A shows duty elimination in terms of tariff lines and trade, as applied by Australia 
to imports from Chile.  Before the entry in for ce of the Agreement, 2,773 tariff lines (46.2% of 
Australia's tariffs) were alr eady duty-free on an MFN basis17 (applied rate).  Upon entry into force of 
the Agreement, an additional 2,676 lines (44.6% of the tariff) became duty-free for imports from 
Chile;  as a result, 90.9% of Australia's tariff  lines became duty-free corresponding to 99.5% of 
imports by value from Chile (during the period 2006-08).  The remaining tariffs are to be 
progressively reduced and eliminated, according to  modalities described below.  In 2015, after 
six years of implementation, a further 553 lines ar e to become duty-free (9.2% of the tariff lines) 
amounting to 0.5% of the value of imports from Chile.  By the end of the implementation in 2015, 100% of tariff lines and of imports by value from Chile will be duty-free.  
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. Australia 
Duty phase-out 
period Number of 
lines % of total lines in 
Australia's tariff schedule Value of Australia's imports 
from Chile (2006-2008) 
in million US$ % of Australia's total 
imports from  
Chile 2006-2008 
MFN duty free (2009) 2,773 46.2 261.4 80.7 
2009 2,676 44.6 61.2 18.9 
2015 553 9.2 1.5 0.5 
Total 6,002 100.0 324.0 100.0 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on da ta provided by Australia. 
                                                      
16 Except for one component of Chile's sugar tariff which will remain subject to its current "price band" 
system. 
17 Australia's MFN tariff schedule in the year of entry into force of the Agreement (2009) comprised 
6,002 tariff lines at the HS-8-digit level ; 99.7% of this is ad valorem  (5 lines being non ad valorem ).  WT/REG263/1 
 Page 13 
 
 
  25. Table III.1.B shows duty elimination in terms of tariff lines and trade, as applied by Chile to 
imports from Australia.  Before the entry into for ce of the Agreement, 35 ta riff lines (0.5% of Chile's 
tariff) were already duty-free on an MFN basis18 (applied rate).  Upon entry into force of the 
Agreement, an additional 6,708 tariff lines (87% of the tariff) became duty-free for imports from 
Australia;  as a result, 87% of Chile's tariff became duty-free in 2009 corresponding to 98.6% of 
imports by value from Australia.  The remaining tariffs are to be progressively reduced and then 
eliminated, according to modalities described below.  By 2015, after six years of implementation, a 
further 965 lines are to become duty-free (12.5% of the tariff lines) amounting to 0.5% of the value of imports from Australia.  By the end of implementati on in 2015, 100% of tariff lines and of imports by 
value from Australia will be duty-free, with the exce ption of specific tariffs applicable to six products 
(sugar). 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Chile 
Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from Australia (2006-2008) 
in million US$ % of Chile's total 
imports from 
Australia 2006-2008 
MFN duty free (2009) 35 0.5 2.1 0.9 
2009 6,708 87.0 236.3 98.6 
2015 965 12.5 1.2 0.5 
Remain dutiable 6 0.1 0.0 0.0 
Total 7,714 100.0 239.5 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Chile. 
 
26. Annex 1 to this factual presentation contains so me additional indicators of trade liberalization 
under the Agreement. 
(a) Australia's liberalization schedule 
27. Australia's Schedule distinguishes between three Product Categories for which the elimination 
of customs duties is implemented differently: 
28. Category "Year 0":  covers products for which customs duties are eliminated upon entry into 
force of the Agreement (6 March 2009).  This Cate gory represents 90.8% of total lines in Australia's 
tariff Schedule, including the 46.2% of total lines in  Australia's tariff Schedule, which were already 
duty free on an MFN basis in 2009. 
29. Category "Year 6":   covers products for which customs duties are to be reduced in seven 
equal annual stages from the date of entry into for ce of the Agreement (6 March 2009) and to become 
duty free on 1 January 2015.  The resulting margin of preference granted in relation to the base rate 
for Australia's imports from Chile is as follows. 
Category "6"  
 Entry into 
force 01/01/2010 01/01/2011 01/01/2012 01/01/2013 01/01/2014 01/01/2015 
Margin of 
preference 14.3% 28.6% 42.9% 57.2% 71.5% 85.8% 100.0% 
 
                                                      
18 Chile's MFN tariff schedule in the year of entr y into force of the Agr eement (2009) comprised 
7,714 tariff lines at the HS-8-digit level ; 6 lines have non ad valorem  rates. WT/REG263/1 
Page 14  
 
  30. Category "Year 6 TX":  covers products for which cust oms duties will be removed at the 
end of the transition period on 1 January 2015.   
31. The base rate used by Australia for its tariff elimination programme in its Schedule of tariff 
concessions is the MFN applied rate in 2008, which is depicted in Tables III.2 and in Chart III.1.  
32. Table III.2 shows Australia's trade liberali zation commitments under the Agreement on the 
basis of products' treatment at the HS 8-digit level organized by HS section product categories.  Of the 
6,002 tariff lines forming Australia's tariff schedule,  2,773 were already duty-free on an MFN basis in 
2009 (applied rate).  It should be noted that 529 ou t of the 553 lines which remain subject to duties 
during the transition period correspond to textiles and textiles articles, MFN rates for which were 
scheduled to be reduced on 1 January 2010 according to  a Note in Annex 3-B, Section 1 (Schedule of 
Australia).
19  
Table III.2 
Australia:  Tariff elimination und er the Agreement, by HS section 
Number of additional duty-free 
lines for Chilean Products  HS section and description  MFN average%  Total No of 
lines  MFN 2009  
2009 2015 
I Live animals and animal products 0.0 231  224 7  
II Vegetable products 0.7 262  223 37 2 
III Animal or vegetable fats and oils 2.0 46  28 18  
IV Prepared foods etc. 2.7 261  119 142  
V Minerals 0.4 191  177 14  
VI Chemicals and chemical products 1.4 872  629 243  
VII Plastics and rubber 5.3 238  24 209 5 
VIII Hides and skins 4.0 92  29 50 13 
IX Wood and articles 3.3 142  49 93  
X Pulp, paper etc. 3.7 288  74 214  
XI Textiles and textiles articles 8.8 917  161 227 529 
XII Footwear, headgear 4.5 64  31 30 3 
XIII Articles of stone 3.8 162  50 112  
XIV Precious stones, etc. 1.0 53  42 11  
XV Base metals and base metals 
products 3.6 588  172 416  
XVI Machinery 3.2 949  406 543  
XVII Transport equipment 4.5 239  73 166  
XVIII Precision equipment 1.1 246  202 44  
XIX Arms and ammunition 1.5 20  14 6  
XX Misc. manufactured articles 3.7 134  39 94 1 
XXI Works of art, etc. 0.0 7  7   
Total 3.6 6,002  2,773 2,676 553 
 
Note: Based on the HS 2007 nomenclature. 
Source : WTO estimates based on data  provided by Australia. 
 
33. As can be seen from Chart III.1, most of the lines to be progressively freed of duties during 
the transition period are subject to rates of 10% or less (3,000 lines).  Lines subject to duties of up to 
20% are to be liberalized in 2015 (224 lines).  Se ven lines, relating to used or second-hand vehicles20, 
are subject to compound  duties21, which are to be progressively eliminated.   
                                                      
19 On 1 January 2010, Australia reduced its applied MF N rate of duties on a range of textiles, clothing 
and footwear products (TCF). Tariffs on clothing and fi nished textiles were reduced from 17.5% to 10%. Other 
TCF tariffs have been reduced from levels of either 10% or 7.5% to a new level of 5%. 
20 The seven products are: HS 8703.21.11, HS 8703.22.11, HS 8703.23.11, HS 8703.24.11, 
HS 8703.31.11, HS 8703.32.11, and HS 87803.90.11. 
21 The base rate corresponds to 10% and US$ 12,000 each.  WT/REG263/1 
 Page 15 
 
 
  0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,00020092010-20142015Chart III.1
Australia's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Australia.Number of duty-free lines (cumulative)
Duty-free <10% <20% MFN is: non ad valorem 
 
 
(b) Chile's liberalization schedule 
34. Chile's Schedule distinguishes between five Pr oduct Categories for which the elimination of 
customs duties is implemented differently: 
35. Category "Year 0":  covers products for which customs duties are eliminated upon entry into 
force of the Agreement (6 March 2009).  This Catego ry represents 87% of total lines in Chile's tariff 
Schedule, to be added to the 0.5% of its lines which were already duty free on an MFN basis in 2009. 
36. Category "Year 6":  covers products for which customs duties are to be reduced in seven 
equal annual stages beginning on the date of entry into force of the Agreement (6 March 2009) and 
which will become duty free on 1 January 2015.  The resulting margin of preference to be granted to 
Chile's imports from Australia is as follows. 
Category "6"  
 Entry into force 01/01/2010 01/01/2011 01/01/2012 01/01/2013 01/01/2014 01/01/2015 
Margin of 
preference 14.3% 28.6% 42.9% 57.2% 71.5% 85.8% 100.0% 
 
37. Category "Year 6 TX":  covers products for which cust oms duties will be removed at the 
end of the transition period and will become duty free on 1 January 2015.   
38. Category "W":   covers two products22 for which the base Rate (31.5%) is reduced by 16.7% 
upon entry into force of the Agreement (6 March 20 09), and by an additional 8.3% of the base rate 
each year thereafter through year three (01 January 2012).  Beginning 1 January of year four (2013), 
duties on the goods in this Category will be reduced by  an additional 16.7% of the base rate annually, 
to become duty free on 1 January 2015.  The resulting margin of preference granted to Chile's imports 
from Australia is as follows. 
 
                                                      
22 The two products contained in the Category "W" are: HS 1001.9000 (Wheat and meslin other than 
Durum wheat), and HS 1101.0000 (Wheat or meslin flour). WT/REG263/1 
Page 16  
 
  Category "W"  
 Entry into force 01/01/2010 01/01/2011 01/01/2012 01/01/2013 01/01/2014 01/01/2015 
Margin of 
preference 16.7% 25.0% 33.3% 50.0% 66.7% 83.3% 100.0% 
 
39. The "Sugar Category" covers six products23 for which the Base Rate is composed of an 
ad valorem  duty (6%) and a specific duty.  Th e Agreement specifies that only the ad valorem  duty 
component is to be progressively reduced  and eliminated on 1 January 2012.  The ad valorem  
component is consequently to be reduced according to the following timetable.  The specific tariff rate 
will continue to apply for the products in this Ca tegory under Chile's Law No. 18.525 or its successor. 
"Sugar" Category  
 Entry into force 01/01/ 2010 01/01/201 1 01/01/2012 
ad valorem  duty 3.00% 1.98% 1.02% 0.00% 
Note:  Only the ad valorem  duty (6%MFN) is to be progressively reduced and elimin ated.  The specific duty a pplicable for the products 
 in this Category, whose level is not me ntioned in the Agreement, remains in place.  
40. The base rate used by Chile for its tariff el imination programme in its Schedule of tariff 
concessions corresponds to the MFN applied duty in 2008 and is set at 6% (with the exception of two 
products in the "W Category"24, for which the Base Rate is 31.5%, and products in the "Sugar 
Category"25 for which the base rate is 6% plus a specific duty).  The specific tariff applied on an MFN 
basis for the six products of this category will con tinue to apply, also for Australian imports, once the 
Agreement is fully implemented. 
41. Table III.3 shows Chile's trade liberalization commitments under the Agreement on the basis 
of products' treatment at the HS 8-digit level orga nized by HS section product categories.  Of the 
7,714 tariff lines forming Chile's tariff schedule, 35 were already duty-free on an MFN basis in 2009;  
the 6,708 lines liberalized upon entry into force of th e Agreement cover a broad range of HS sections.  
Of the 971 lines which will be liberalized in 2015, at the end of implementation, most are textiles 
products.  Six products (under the "Sugar Category") remain dutiable after the end of implementation, 
the dutiable part being the specific tariff component of the base rate. 
Table III.3 
Chile: Tariff elimination under the Agreement, by HS section 
Number  of 
additional duty-
free lines for 
Australian 
Products  HS section and description  MFN 
average
% Total No of lines  MFN 
2009  
2009 2015 Remain 
dutiable  Average 
Final 
Tariff 
(2015)  
I Live animals and animal products 6.1 604   559  45   
II Vegetable products 6.1 405   397  8   
III Animal or vegetable fats and oils 6.0 60   59 1   
IV Prepared foods etc. 6.0 414   397  11 6 - 
V Minerals 6.0 196   195  1   
VI Chemicals and chemical products 6.0 1,232  1,193  39   
VII Plastics and rubber 6.0 304   283  21   
VIII Hides and skins 6.0 81   68  13   
IX Wood and articles 6.0 158   158    
X Pulp, paper etc. 5.9 209 4  205    
XI Textiles and textiles artic les 6.0 1,093   293  800   
                                                      
23 The six products contained in the "Sugar category" are: HS 1701.11.00, HS 1701.12.00, 
HS 1701.91.00, HS 1701.99.10, HS 1701.99.20, and HS 1701.99.90. 
24 The two product contained in the Category "W" are: HS 1001.9000 (Wheat and meslin other than 
Durum wheat), and HS 1101.0000 (Wheat or meslin flour). 
25 The "Sugar Category" covers the following tari ff lines (1701.11.00, 1701.12.00, 1701.91.00, 
1707.99.10, 1701.99.20, and 1701.99.90).  WT/REG263/1 
 Page 17 
 
 
  Number  of 
additional duty-
free lines for 
Australian 
Products  HS section and description  MFN 
average
% Total No of lines  MFN 
2009  
2009 2015 Remain 
dutiable  Average 
Final 
Tariff 
(2015)  
XII Footwear, headgear 6.0 109   108  1   
XIII Articles of stone 6.0 187   178  9   
XIV Precious stones, etc. 6.0 60   60    
XV Base metals and base metals  products 6.0 637   630  7   
XVI Machinery 6.0 1,142  2 1,134  6   
XVII Transport equipment 5.5 333  29  304    
XVIII Precision equipment 6.0 258   258    
XIX Arms and ammunition 6.0 23   23    
XX Misc. manufactured articles 6.0 202   199  3   
XXI Works of art, etc. 6.0 7   7    
Total 6.0 7,714 35 6,708  965 6 - 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by Chile. 
 
42. As can be seen from Chart III.2, most of the lines freed of duties in 2009 to 2015 are subject 
to rates of 10% or less.  The two lines subject to duties of up to 31.5% are to be liberalized from 2012 onwards.  For products in the "Sugar Category", th e specific tariff remains applicable for imports 
from Australia (and on an MFN basis) once liberali zation has been completed according to Chile's 
commitments under the Agreement. 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000200920102015Chart III.2
Chile's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Chile.Number of duty-free lines (cumulative)
Duty-free <10% <20% MFN is: <40%
 
 
3. Administrative Fees and Formalities 
43. The Agreement provides for the Parties to strict ly adhere to Art. VIII:1 of GATT 1994 and its 
interpretative notes on the imposition of fees and ch arges imposed on or in connection with imports 
(Art. 3.10).  This Article also prohibits the Par ties from requiring consular transactions, including 
related fees and charges, in connection with the impo rt of any good of the other Party.  A current list 
of the fees and charges each Party imposes in c onnection with imports must be made available 
through the Internet.  Art. 5.12 (Fees and Charges, contained in Chapter 5 – Customs administration) 
confirms, for greater certainty, that administrativ e fees and formalities applies to customs fees and 
charges. WT/REG263/1 
Page 18  
 
  4. Import Restrictions 
44. The Agreement prohibits the Parties from adopting or maintaining any prohibition or 
restriction on the import of any good from the other Party, except as provided by Art. XI of the GATT1994 and its interpretative notes, or unless speci fically provided for by the Agreement.  The 
Agreement incorporates mutatis mutandis Art. XI of the GATT 1994 and its interpretative notes 
(Art. 3.9). 
45. As an exception to the prohibition on import r estrictions, Annex 3-A allows Chile to take 
measures concerning the import of used vehicles as provided in the Chilean Law No. 18.483 or its successor. 
B. R
ULES OF ORIGIN  
46. Disciplines regarding rules of origin and cu stoms procedures are set out in Chapter 4 
complemented by specific rules for each tariff line or product contained in Annex 4-C.   
47. Art. 4.1 contains definitions relating to rules of origin.  
48. Art. 4.2 to 4.15, as well as Annex 4-C deal with  the rules of origin themselves.  The general 
requirements for a good to be considered an origina ting good of a Party (Article 4.2) are that it:  
• be wholly obtained  in Australia or in Chile;  
Art. 4.3 describes the necessary conditions to qualify as a wholly obtained good.  Moreover, 
Art. 4.4 (cumulation) stipulates that a good whic h is an originating good of a Party and is 
used in the production of a good or goods in the territory of the other Party shall be considered to originate in the territory of  that other Party; Art. 4.5 establishes a de minimis  
principle whereby a product, which does not satisfy a change in tariff classification 
requirement pursuant to Annex 4-C is nonetheless considered to be originating if the Value 
of all Non-Originating Materials used in its  production that do not undergo the required 
change in tariff classification does not exceed 10% of the adjusted value of the good.  The 
calculation of the Value of Non-Originating Material is described in Art. 4.12.   
• be produced entirely in Australia or in Ch ile exclusively from originating materials ;   
• satisfy all applicable requirements of Annex 4-C, as a result of processes performed entirely 
in the territory of Australia or Chile  by one or more producers;  
Annex 4-C sets out the specific criteria for pr oducts resulting from transformation to meet in 
order to acquire originating status.
26   
- In all cases, the specified change in classifica tion (change to another HS heading at the 
HS 4 digit level or change to another HS subheading at the 6 digit level) indicates a transformation which is a required elemen t for the determination of origin;   
                                                     
 
26 Chapter and Section Notes contain additional horizontal rules, and/or definitions applicable to 
specific transformation processes which confer the or igin. This is the case for HS Chapter 3 (Fish and 
Crustaceans, molluscs and other aquatic invertebrate s), HS Section II (Veget able products - covering 
HS Chapters 6-14), HS Chapter 27 (Mineral fuels, mine ral oils and products of their distillation; bituminous 
substances; mineral waxes), HS Section VI (Products  of the chemical or allied industries – covering 
HS Chapters 28-38), and HS Section VII (Plastics and ar ticles thereof; rubber and ar ticles thereof – covering 
HS Chapters 39-40).  WT/REG263/1 
 Page 19 
 
 
  - In addition, for a number of products, a qualifying minimum regional value content 
(RVC) requirement is prescribed as an alternative formula.  The RVC requirement establishes the minimum value of originating materials (not less than 40%, whether or 
not there is also a change in tariff classification
27) required in the good for it to be 
considered originating.  Art. 4.11 provides a method to calculate the RVC28;  
- For a limited number of essentially chemical products (HS Chapters 28-40) a specific 
manufacturing or processing operation requirement in the form of chemical reaction, purification, mixtures and blends, change in particle size, production of standards 
materials, or isomer separa tion may apply in some cases
29;   
- In some cases relating to textiles (HS Ch apter 63), for products to be deemed 
originating, where the starting material is fabric, the fabric must be raw and fully 
finished in the territory of the Parties;  or 
• otherwise qualify as an originating good under Chapter 4  of the Agreement. 
49. Arts. 4.6-10 define how certain materials (acce ssories, spare parts and tools; fungible goods 
and materials; packaging materials and containers, sets of composite goods; and indirect material) are 
to be treated/valued when determining the origin of a good for which those materials are used.   
50. Art. 4.13 contains a list of non-qualifying opera tions which do not confer origin and which 
prevail over the product specific rules set out in Annex 4-C. 
51. Art. 4.14 and 4.15 establish rules providing for the recording of costs, and preventing third 
country transhipment. 
52. Art. 4.16, to 4.21, complemented by Anne x 4-A (Minimum requirements), and Annex 4-B 
(Example and Instructions) deal with Certificates of  Origin and related-procedures.  A Certificate of 
Origin, completed by the exporter, must be presente d for the product to be eligible for a preferential 
treatment under the Agreement.30 The Certificate of Origin remains valid for a period of one year 
from the date it was issued. 
53. Moreover, through an exchange of letters, which is an integral part of the Agreement, the 
Parties confirm that an agent of an exporter ma y complete, sign and date a Certificate of Origin. 
54. Art. 4.22 to 4.29 deals with customs-relate d procedures and matters related with the 
determination of the origin of a product, including appeal (Art. 4.25), and consultation, review and 
modification (Art. 4.16).   
C. CUSTOMS VALUATION  
55. The Agreement specifies that the WTO agreement on the implementation of Art. VI of the 
GATT 1994 (Customs Valuation Agreem ent) is applicable for the purpose of determining the customs 
value of goods traded between the Parties (Art. 3.5). 
                                                      
27 As an exception, for some Mi scellaneous chemical products (HS Chapter 38), the minimum local / 
regional content requirement is expressed as follows: "provided that at least 50% by weight of the active 
ingredient or ingredients is originating". In this partic ular case, the local / regional  content requirement is not 
alternative to the tariff classification change but conditional. 
28 To allow for the calculation of the RVC, Art. 4.12 provides for a method to calculate the Value of 
Non-Originating Material (VNM). 
29 Specific manufacturing or processing operation not conferring origin is also listed as a Section Note. 
30 Exceptions are provided for in Art. 4.17, including a de minimis  rule (< US$ 1,000). WT/REG263/1 
Page 20  
 
  D. S
PECIAL REGIMES  
56. "Special Regimes" which waive the applicati on of customs duties are applicable for: the 
temporary admission of goods for personal use, in cluding professional equipment, goods for display 
at exhibitions, commercial samples and goods admitted for sports purposes (Art. 3.6); goods 
re-entered after repair or alteration (Art. 3.7); and for commercial samples of negligible value and 
printed advertising materials (Art. 3.8). 
E. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. Administrative Fees and Formalities 
57. The Agreement provides for the Parties to strict ly adhere to Art. VIII:1 of GATT 1994 and its 
interpretative notes on the imposition of fees and char ges imposed on or in connection with exports 
(Art. 3.10).  A current list of the fees and charges each Party imposes in connection with exports must 
be made available through the Internet.  Art. 5.12 (Fees and Charges, contained in Chapter 5 – 
Customs administration) confirms, for greater cert ainty, that administrative fees and formalities 
applies to customs fees and charges. 
58. The Agreement prohibits the Parties from adop ting or maintaining export duties, taxes or 
other charges, unless such duty, tax or charge is  adopted or maintained on any such good when 
destined for domestic consumption (Art. 3.11).  
2. Export restrictions 
59. The Agreement prohibits the Parties from adopting or maintaining any prohibition or 
restriction on the export or sale for export of any good destined for the territory of the other Party, except as provided by Art. XI of the GATT 1994 a nd its interpretative notes, or unless specifically 
provided for by the Agreement.  The Agreement incorporates mutatis mutandis Art. XI of the 
GATT 1994 and its interpretative notes (Art. 3.9). 
60. As an exception to the prohibition on import and export restrictions, Annex 3-A of the 
Agreement allows Australia to control exports of  woodchips and unprocessed forest products sourced 
from native forests outside Regional Forest Agreem ent regions, or plantation forests within States 
where Codes of Practice have not been approved by the Australian Government, and Sandalwood 
sourced from any State, the Australian Capital Territo ry, or the Northern Territory.  Annex 3-A also 
allows Australia to apply the pr ovisions of and measures under the Li vestock Export (Merino) Orders, 
under the Export Control Act of 1982, as amended. 
F. R
EGULATORY PROVISION S ON TRADE IN GOODS  
1. Sanitary and Phytosanitary Measures (SPS) 
61. Chapter 6 of the Agreement covers Sanita ry and Phytosanitary Measures (SPS).  The 
definition of SPS Measures is the same as in the WT O Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement). 
62. This Chapter aims at facilitating bilateral tr ade between the Parties while protecting human, 
animal and plant life and health in their territory, but intends also to deepen mutual understanding of 
each Party's regulations and procedures and to stre ngthen bilateral cooperati on between the Parties' 
competent authorities (Art. 6.2).  The Parties reaffirm their commitment to the right and obligations under the WTO SPS Agreement and commit to cooper ate both in international bodies on SPS related 
work and on priority proposals for technical assist ance and capacity building to enhance the capability  WT/REG263/1 
 Page 21 
 
 
  on SPS related aspects to contribute to the objectives of Chapter 6 of the Agreement (Art. 6.4 – 
General Provisions).  
63. Art. 6.5 contains provisions on consultati ons between the Parties on SPS matters and 
acknowledges the value of exchanging information on the SPS measures to ensure  transparency in the 
implementation of SPS measures.  Art. 6.5 also provide for the establishment of "SPS Contact 
Points"31 to coordinate requests for technical assistance, to review progress on addressing SPS 
matters, to communicate SPS priorities, to facilitate the consideration of request for information and 
clarification, to facilitate communication between e xperts, to promote and facilitate cooperation, to 
facilitate transparency, and to ensure an appropriate  participation of all relevant government agencies 
in the consultation process established between Australia and Chile. 
64. The provisions of Chapter 6 are not subject to  the dispute settlement mechanism established 
under the Agreement (Art. 6.3 paragraph 2). 
2. Technical Regulations, Standards and Co nformity Assessment Procedures (TBT) 
65. Chapter 7 of the Agreement covers Techni cal Regulations, Standards and Conformity 
Assessment Procedures.  The definition of techni cal regulations, standards and conformity assessment 
procedures is the same as in the WTO Agreem ent on Technical Barriers to Trade (TBT).  
66. The Chapter aims at increasing and facilitate trade through the improvement of the 
implementation of the WTO TBT Agreement, the elimination of unnecessary technical barriers to trade and the enhancement of bilate ral cooperation (Art. 7.2).  It app lies to all standards, technical 
regulations and conformity assessment procedures of  the central government which affect trade in 
goods between the parties and includes a commitment to  take reasonable steps to ensure that other 
bodies with shared responsibilities (regional or local  government or non-government) also comply 
with its provisions (Art. 7.3).  Technical speci fications prepared by government bodies for production 
or consumption requirement of such bodies are excluded from the Chapter but are addressed under 
Chapter 15 dealing with government pr ocurement (Art. 7.3 paragraph 3).  
67. The Parties reaffirm their commitment to the WTO TBT Agreement (Art. 7.4). 
68. The provisions contained in Chapter 7 emphasise the use of international standards (Art. 7.5), 
and the need to work cooperativel y in the fields of standards, technical regulations and conformity 
assessment procedures, in particular through identifying trade facilitating bilateral initiatives 
(Art. 7.6).  In determining releva nt international standards, the Pa rties shall apply the principles set 
out in the Decisions and Recommendations  adopted by the WTO TBT Committee since 
1 January 1995. 
69. On technical regulations, the Parties sha ll give positive consideration to accepting as 
equivalent technical regulations of the other Part y, provided these regulations adequately fulfil the 
objectives of each Party's regulations (Art. 7.7).  Where a Party does not accept the other Party's 
technical regulations as equivalent to its own, it should provide its reasons for not doing so, if 
requested.  The Agreement's provisions on technical regulations may not be subject to its dispute 
settlement mechanism (Art. 7.7 paragraph 3). 
70. On conformity assessment procedures, the Parti es recognise that a broad range of mechanisms 
exist to facilitate the acceptance by a Party of the conformity assessment procedures of the other 
                                                     
 
31 SPS Contact Points: for Australia: the Department of Agriculture, Fisheries and Forestry, or its 
successor;  for Chile: the General Direct orate of International Economic Affairs,  Ministry of Fore ign Affairs, or 
its successor. WT/REG263/1 
Page 22  
 
  Party.
32  Accreditation, approval, licensing, or othe rwise recognition of conformity assessment bodies 
in the territory of the other Party must be consiste nt with the national treatment principle (Art. 7.8). 
71. Chapter 7 also contains provisions on transparency  (Art. 7.9), including allowing participation 
by individuals from the other party in the develo pment of standards, technical regulations and 
conformity assessment procedures on terms no less fa vourable than it accords to its own persons and 
on the use of the TBT Enquiry Point established by the Parties in connection with the implementation 
of their obligations under the WTO TBT Agreement.  In addition, Art. 7.11 contains provisions on 
information exchange. 
72. In order to facilitate the implementation of Ch apter 7 and cooperation between the Parties, a 
Committee on Technical Barriers to Trade is esta blished under Art. 7.10.  The activities of the 
Committee which include monitoring the implementa tion of the Chapter, promptly addressing any 
issue raised by the other Party in the context of the Chapter, and enhancing cooperation in the 
development of standards, technical regulations  and conformity assessment procedures, will be 
coordinated by Coordinators from both Parties33 (Art. 7.10, paragraph 3).  
3. Trade Remedies 
73. Chapter 8 of the Agreement covers Trade Re medies.  It essentially refers to rights and 
obligations with regards to actions  taken pursuant to the relevant provisions of the WTO Agreements 
regarding Trade Remedies, without conferring any a dditional rights or obligations on the Parties. 
When measures are taken by the Parties pursuant to Art. XX of GATT 1994 and the WTO Safeguards Agreement, and/or any other relevant provisions  on Global Safeguards from any WTO Agreement, 
and/or Art. VI of GATT 1994 and the WTO Agre ement on the implementation of Art. VI of 
GATT 1994 (with regard to the application of anti dumping and countervailing duties), the Agreement 
does not foresee that Trade Remedies are to be eliminated.  This means that existing AD/CVD 
measures can be maintained and that new one can be  introduced, provided they are in conformity with 
the Parties' relevant WTO rights a nd obligations in that regard.  
4. Safeguard measures 
(a) Global safeguards 
74. With regard to Global safeguards, the Par ties retain their rights and obligations under 
Art. XIX of GATT 1994 and the WTO Safeguards Agre ement as well as their rights and obligations 
under any other relevant provisions in the WTO Ag reement, and their successor (Art. 8.1).  The 
Agreement does not confer any additional rights or ob ligations on the Parties with regard to actions 
taken pursuant to Art. XIX of GATT 1994 and th e Safeguards Agreement, and their successors. 
(b) Balance-of-Payments Safeguards 
75. With regard to Restrictions to Safeguard the Balance-of-Payments, Art. 22.4 of the 
Agreement contains disciplines on the use of restri ctions to safeguard the Balance-of-Payments and 
external financial difficulties, or the threat thereo f.  If the Parties adopt or maintain restrictive 
measures with regard to trade in goods and in services and with regard to payments and capital 
movements, including those related to direct invest ment, they must ensure that such measures are 
non-discriminatory and of limited duration and shall not go beyond what is necessary to remedy the 
                                                     
 
32 An illustrative list of such mechanisms is co ntained in Art. 7.8, paragraph 1 a) to f). 
33 Coordinators are for Australia: the Department of Innovation, Industry, Science and Research, or its 
successor;  and for Chile: the General Directorate of In ternational Economic Affair s, Ministry of Foreign 
Affairs, or its successor.  WT/REG263/1 
 Page 23 
 
 
  Balance-of-Payments and external financial situa tion.  The measures taken shall be in accordance 
with WTO rules and disciplines in that regard as well as with the Articles of Agreement of the 
International Monetary Fund, as applicable. 
(c) Anti-dumping and countervailing measures 
76. With regard to the application of antidumpi ng and countervailing measures, the Parties retain 
their rights and obligations under Art. VI of GATT 1994 and the WTO Agreement, and their 
successor.  The Agreement does not confer any additional rights or obligations on the Parties with 
regard to actions taken pursuant to Art. VI  of GATT 1994 and the WTO Agreement, and their 
successor.  
5. Subsidies and State-aid 
77. With regard to Subsidies, the Agreement does not contain specific disciplines on the Parties, 
with the exception of Section F of Chapter 3 (Agr iculture – National Treatment and Market Access 
for Goods), under which the Parties share the obj ective of the multilateral elimination of export 
subsidies for agricultural goods and a commitment to  work together towards an agreement in the 
WTO to eliminate such subsidies and prevent their reintroduction in any form (Art. 3.13, 
paragraph 1).  Moreover, Neither Party shall in troduce or maintain any export subsidy on an 
agricultural good destined for the territory of  the other Party (Art. 3.13, paragraph 2). 
78. There is no reference to state-aid.  Article 14.4, on Enterprises with Special or Exclusive 
Rights, including Designated Monopolies, and Art. 14.5 on State Enterprises, which may cover matters related to some State-aid issues are a ddressed in the section on Competition Policy below. 
G. C
USTOMS -RELATED PROCEDURES  
79. The provisions on Administration of Trade Regul ations (Art. 3.14) reaffirm the elements 
contained in Article X of GATT 1994 related to th e uniform, impartial and reasonable administration 
of the Parties relevant laws, regulations, j udicial decisions and administrative rulings. 
80. Chapter 5 of the Agreement covers customs pro cedures for goods.  It contains provisions on 
transparency (publication on the internet of laws , regulations and administrative procedures, and 
establishment of enquiry points – Art. 5.3), revi ew and appeal procedures for importers on the 
determination of customs matters (Art. 5.4), use of civil or administrative penalties or sanctions, and, 
when appropriate, criminal sanctions for viola tions of customs laws (Art. 5.5), protection of 
confidentiality by Customs Administrations when using information received by trade operators 
(Art. 5.9), and the provision of written advance rulings for tariff classification, valuation and classification of the good as originating under th e Agreement, where possible, (Art. 5.10). 
81. Customs procedures are to conform, where possible and to the extent permitted by the 
national laws of the Parties, with internationa l standards and practices recommended by the World 
Customs Organization.  The Parties will ensure that their procedures are administered in an impartial, 
uniform and reasonable manner and avoid arbitrary an d unwarranted procedural obstacles.  According 
to Art. 5.7 Australia and Chile commit to use cu stoms procedures to facilitate the clearance of 
low-risk goods and thus allowing their customs administrations to focus on high-risk goods.  To the 
extent possible, systems that allow for information regarding an import to be processed in advance of 
arrival are to be used to clear goods.  Art. 5.8 provides for cooperation between the Customs 
Administrations of the Parties including the provision of advance notice of significant modifications in administration policy on the implementation of cust oms laws that are likely to affect the operation 
of the Agreement;  and the provision of information to assist in the investigation and prevention of WT/REG263/1 
Page 24  
 
  infringements.  Under Art. 5.11, Australia and Chile  undertake to work towards the use of paperless 
trading. 
H. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
82. With regard to agriculture and processed food products, the Agreement prohibits the Parties 
from introducing or maintaining any export subsidy for any agricultural good destined for the territory 
of the other Party (Art. 3.13).  Moreover, the Parti es commit to work together toward an agreement in 
the WTO to eliminate such subsidies and prevent their reintroduction in any form. 
83. Under Art. 3.12 the Australia New Zealand F ood Standards Code allows recognition of 
Chilean Pisco as a product exclusiv ely manufactured in Chile.  Aust ralia commits not to permit the 
sale of any product as Chilean Pisco unless it has been manufactured in Chile according to the laws of 
Chile.  Through an exchange of letters, which form an integral part of the Agreement, the Parties 
recognise that Chilean geographical indications for wines are established by Decree 464 of the 
Chilean Ministry of Agriculture of December 14,  1994, and its amendments, and by the Law 18.455. 
Each Party commits to provide a means to protect the geographical indications of the other Party in 
accordance with Art. 17.17.2 of the Agreement. 
84. Through an exchange of letters, which is an integral part of the Agreement, the Parties 
commit to negotiate a memorandum of understandi ng (MoU) affirming Chile's recognition of the 
Australian Meat Industry Classification System (AUS-MEAT) as meeting the aims and objectives of the Chile Beef Grading Scheme.  Moreover, the MoU is to formalise Chile's recognition of the 
AUS-MEAT language, and AUS-MEAT Limited as the certifying body of this system, to grade beef for the purpose of marketing beef in Chile.  The Mo U is to be negotiated within one year of the 
Agreement  entering into force. 
IV. TRADE IN SERVICES AND INVESTMENT 
A. S
COPE AND DEFINITIONS  
85. Chapters 9 to 13 of the Agreement cover trade in services and investment.  
86. Chapter 9 covers Cross-Border Trade in Services  (CBTS).  The Chapter includes Annex 9-A 
on Professional Services.34  In the Agreement, CBTS is defined as the supply of a service: 
• from the territory of one Party into the territo ry of the other Party and therefore corresponds 
to mode 1 as defined in the GATS; 
• in the territory of one Party by a person of that Party to a person of the other Party and 
therefore corresponds to mode 2 as defined in the GATS;  and 
• by a national of a Party in the territory of the other Party but not including the supply of a 
service in the territory of a Party by an investor of the other Party in the territory of the other 
Party, though certain obligations of Chapter 9 also apply to mode 3, which is essentially 
covered by Chapter 10 (Investment).  
87. The Chapter applies to measures adopted or ma intained by a Party affecting cross-border 
trade in services by service suppliers of the other Pa rty, and includes (a) the production, distribution, 
marketing, sale, and delivery of a service, (b) th e purchase or use of, or payment for, a service, 
                                                      
34 The disciplines contained in the Chapter must also be read in parallel with the Parties' Schedules 
contained in Annexes I and II of the Agreement.  WT/REG263/1 
 Page 25 
 
 
  (c) access to and use of distribution, transport, or telecommunications networks and services in 
connection with the supply of a service, (d) the pr esence in its territory of a service supplier of the 
other Party, and (e) the provision of a bond or othe r form of financial security as a condition for the 
supply of a service (Art. 9.2 para. 1).  In addition,  disciplines on market access (Art. 9.5) and domestic 
regulations (Art. 9.8) also apply to measures adopt ed and maintained by a Party affecting the supply 
of a service in its territory by an investor of the other Party or a covered investment (Art. 9.3 para. 2).  
88. Chapter 9 does not apply to (a) financial servic es, which is governed by specific disciplines 
contained in Chapter 12, (b) government procurem ent, (c) subsidies, (d) services supplied in the 
exercise of governmental authority, and (e) some air services and some related services (Art. 9.2 para 3).  Chapter 9 also does not impose any obligations on a Party with respect to access to the 
employment market for job seekers or national of th e other Party employed on a permanent basis in 
the territory of a Party (Art. 9.2 para. 4). 
89. Chapter 10, including Annexes 10-A to F covers Investment , while Chapter 11 contains 
additional provisions on Telecommunications.
35  Chapter 12, including Annexes 12-A to C covers 
Financial Services .36  Chapter 13, including Annex 13-A, covers Temporary Entry for Business 
Persons  and therefore relates to movement of persons. 
B. DENIAL OF BENEFITS  
90. Under Art. 9.10, a Party may deny the benefits of Chapters 9 (CBTS) to a service supplier of 
the other Party if that service supplier is an enterpri se "owned" or "controlled" either by persons of a 
non-Party or of the denying Party.  Benefits may also  be denied if a service supplier is an enterprise 
having no substantial busin ess operations in the territory of the othe r Party.  Under Art. 10.13, a Party 
may deny the benefits of Chapters 10 to an investor  of the other Party and to its investments if the 
investor is an enterprise owned or controlled either  by persons of a non-Party or of the Party denying 
benefits and has no substantive business operati ons in the territory of the other Party.  
91. Chapter 11 on telecommunications and 12 on fina ncial services entail exceptions to the 
disciplines established by these specific chapters.  
C. GENERAL PROVISIONS ON TRADE IN  SERVICES AND INVESTMENT  
1. Cross border trade in services 
(a) National and MFN treatment 
92. Articles 9.3 and 9.4 provide, respectively, for a Party to accord to services and service 
suppliers of the other Party treatment no less favour able than it accords, in like circumstances, to its 
own services and service suppliers (national treatme nt) and to services and service suppliers of any 
non-Party (MFN treatment).   
93. National and MFN treatment apply to measures affecting cross-border trade in services by 
service suppliers of the other Party in all sector s and sub-sectors covered by Chapter 9 with the 
exception of non-conforming measures listed in Annex I and II of the Agreement.  
 
                                                      
35 The disciplines contained in these Chapters must be read in parallel with the Parties' Schedules 
contained in Annexes I and II of the Agreement. 
36 The disciplines contained in the Chapter must be read in parallel with the Parties' Schedules 
contained in Annex III of the Agreement. WT/REG263/1 
Page 26  
 
  (b) Market access 
94. Art. 9.5. grants market access to services and service suppliers of the other Party as well as to 
services supplied by an investor or covered invest ment of the other Party (See Article 9.2.2).  The 
types of limitations Parties may not adopt or maintain mirror those contained in Art. XVI of the GATS, with the exception of the limitation on the part icipation of foreign capital, which is captured in 
the national treatment provision of the Investment Chapter.  Market access limitations are listed by the 
Parties through the "negative list" contained in th eir Schedules in Annex I, setting out the existing 
non-conforming measures mentioned in Art. 9.7.  Moreover, market access disciplines do not apply to 
measures that a Party adopts or maintains with resp ect to sectors, sub-sectors, or activities as set out in 
its Schedule to Annex II of the Agreement.   
(c) Commercial presence 
95. As indicated above, the disciplines on comme rcial presence are contained essentially in 
Chapter 10 on Investment (addressed in the next section below).  Moreover, the CBTS-related local 
presence provisions prohibit a Party from requiring servi ces suppliers of the other Party to maintain a 
representative office or any form of  enterprise, or be resident, in its territory as a condition for the 
cross-border supply of a service (Art. 9.6).  Howe ver, this prohibition may be waived for the 
non-conforming measures set out in Annexes I and II of the Agreement, which provide for such a local presence conditionality.  
2. Investment 
96. Chapter 10 covers Investment whose provisions, inter alia  constitute commitments in relation 
to services provided through mode 3 (commercial presence) but which may also impact trade in 
goods.  As indicated in Annex 10-E of the Agreement,  with the disciplines on investment incorporated 
into this Chapter, the Parties agreed to term inate the Agreement between the Governments of 
Australia and Chile on the Reciprocal Promoti on and Protection of Investments (the IPPA).
37   
97. This Chapter applies to measures adopted or main tained by a Party relating to (a) investors of 
the other Party, (b) covered investments, and (c) al l investments in the territory of the Party with 
respect to the imposition or enforcement of performan ce requirements listed in Art. 10.7.  In the event 
of inconsistency between the Chapter on investment  and another Chapter of the Agreement, the other 
Chapter shall prevail to the extent of the inconsistency.  
98. Chapter 10 does not apply to financial services-re lated measures adopted or maintained by a 
Party and covered by Chapter 12.  It also does not apply to acts or facts that took place or any situation that ceased to exist before the da te of entry into force of the Agreement.
38  Chapter 10 also 
contains disciplines on minimum standards of treatment (Art. 10.5), treatment in case of strife 
(Art. 10.6), as well as provisions on transfer s (Art. 10.10), expropriation and compensation 
(Art. 10.11), and special formalities and information requirements (Art. 10.12). 
99. The key obligations of the Chapter are with  respect to national treatment (Art. 10.3), 
most-favoured-nation treatment (Art. 10.4), pe rformance requirements (Art. 10.7) and senior 
management and boards of directors (Art. 10.8).  
 
                                                      
37 The IPPA however continues to apply to any investment which was made before the entry into force 
of the Agreement with respect to an y act, fact or situation which originated before its entry into force. 
38 Acts or facts still governed by the IPPA (see previous footnote) are reserved.  WT/REG263/1 
 Page 27 
 
 
  (a) National and MFN Treatment 
100. National treatment  is granted by a Party to investors of  the other Party with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investments in its territory.  It is also granted by a Party to covered investments with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investment;  most-favoured-nation treatment  is granted to investors of the other Party as well as to 
covered investments.  This means that better treatme nt than that guaranteed by the Agreement, when 
granted to investors or investments of any non-Pa rty – for instance as a result of the conclusion of 
another agreement covering investments - would be au tomatically granted to investors or investments 
of one of the Parties to the Agreement. 
(b) Performance requirements 
101. Performance requirements for investors from either Party under the Agreement including 
maintaining a certain level of exports, achieving a given level of domestic content, purchasing or 
giving preference to locally produced goods, or transf erring a particular technology, are forbidden.  In 
addition, advantages such as grants and subsidies to investors cannot be made conditional on an 
investment achieving a given level of domestic c ontent or the purchase of locally produced goods. 
However, a number of exceptions are foreseen to allow the Parties to condition the granting of 
advantages to requirements such as locating produ ction in Australia or Chile, supplying services, 
training or employing workers, constructing or e xpanding particular facilities, and carrying out 
research and development.  There are also exceptions for measures necessary to protect human, animal or plant life or health, as well as for th e conservation of living or non-living exhaustible 
natural resources.  Specific exceptions to the prohibition of performance requirements are also 
included with respect to export promotion and fore ign aid programmes, and government procurement. 
Finally, the prohibition to condition investment-rela ted advantages on a given level or percentage of 
domestic content or the purchase or use of domestic  products does not apply when an importing Party 
imposes such requirements to qualify for preferential tariffs or preferential quotas. 
(c) Senior management and boards of directors 
102. Requirements related to senior management and boards of directors  are such that an 
enterprise that is a covered investment may not appo int individuals of any particular nationality to a 
senior management position.  However, a Party may re quire that a majority, or less, of the board of 
directors be of a particular nationa lity or be resident in its territory , provided this requirement does not 
materially impair the ability of that investor to exercise control over its investment. 
103. The above-mentioned key obligations are however not applicable in the case of non-
conforming measures, as defined in Art. 10.9, wh ich must be read in parallel with the measures 
scheduled by the Parties in Annexes I
39 and II.  A grandfather clause also protects investments made 
before the entry into force of the Agreement (Art . 10.9 paragraph 3).  Moreover, the provisions on 
national and MFN treatment, and on senior manage ment and boards of directors do not apply to 
government procurement or subsidies and grants, in cluding loans, guarantees, and insurance, provided 
by a Party. 
3. Movement of natural persons 
104. Chapter 13 of the Agreement covers the tempor ary entry of business persons.  It sets out 
commitments for facilitating temporary entry for business people engaged in bilateral trade and 
                                                      
39 Non-conforming measures by a local level of government do not need to be listed in Annex I to be 
excluded from the application of obligations contained in Art. 10.3, 10.4, 10.7 and 10.8. WT/REG263/1 
Page 28  
 
  investment.  Four classes of business people are covered: business visitors;  contractual service 
suppliers;  executives of a business headquartered in on e Party establishing a branch or a subsidiary in 
the other Party;  and intra-corporate transferees.  The Chapter also covers the spouses of persons in 
the categories above except for short term business visitors but does not apply to measures affecting 
nationals seeking access to the employment market of  a Party, citizenship, nationality, permanent 
residence, or employment on a permanent basis. 
105. The grant of temporary entry is governed by Artic le 13.4, which refers to the Parties' specific 
commitments in Annex 13-A.  Chile's specific co mmitments provide that the four categories of 
persons will be deemed to be enga ged in activities which are in Chile's  interest and therefore issued a 
temporary visa with unlimited opportunities for renewa l and with a right to obtain an identity card. 
The spouses of persons granted the right to ente r for periods of longer than 12 months will 
automatically be granted the right to work. 
106. Australia has committed to providing short and long term temporary entry for periods 
consistent with the current Subclass 456
40 and 45741 visas.  Australia has also granted the spouses of 
long term temporary entrants the automatic right to work. 
107. The Parties commit themselves to process e xpeditiously complete applications for 
immigration formalities and to provide informatio n on temporary entry requirements to enable 
business persons to become acquainted with them.  They also agree to consult on suggestions to 
further facilitate temporary entry.  
108. Dispute settlement (Chapter 21) is available wher e there has been a refusal to grant temporary 
entry but only when: (a) the matter involves a pattern of  practice; (b) the natural persons affected have 
exhausted the available domestic re medies regarding the particular matter; and (c) the Parties have 
undertaken consultations to resolve the issues. 
109. According to Art. 13.8, the Agreement does not impose any obligation on a Party regarding 
its immigration measures, except for the provisions  of Chapter 13 (Temporary Entry for Business 
Persons), Chapter 1 (Initial Provisions), Chapter 2 (General Definitions), Chapter 20 (Institutional 
Arrangements), Chapter 21 (Dispute Settlement ), and Chapter 23 (Final Provisions). 
D. LIBERALIZATION COMMITMENTS IN SERVICES AND INVESTMENT  
110. For cross-border trade in services and investme nt, the Parties have adopted a negative-list 
approach to the scheduling of their liberalization commitments.  This implies that all sectors or 
sub-sectors are assumed to be open to competition from services providers or investors of the other Party unless otherwise specified in the relevant Anne xes of the Agreement.  Disciplines, such as the 
obligations of national and MFN treatment, market  access, and local presence apply fully to measures 
covering all sectors and sub-sectors, unless reservations are listed, as existing non-conforming measures (contained in Annex I of the Agreement), or sectors, sub-sectors or activities for which existing non-conforming measures may be adopted , maintained, or made more restrictive 
(contained in Annex II of the Agreement).   
111. In relation to disciplines on telecommunicati ons, specific disciplines and commitments on 
access to and use of public telecommunication networks  or services, and related to suppliers of public 
telecommunication networks or services, the conduct of major suppliers of public telecommunication 
                                                     
 
40 A subclass 456 visa is available to all passport holders.  It allows business people to make a short 
business visit to Australia for up to three (3) months during the visa validity period. 
41 A subclass 457 visa is the most commonly used programme for employers to sponsor overseas 
workers to work in Australia on a temporary basis (for a period of between one day to four years).  WT/REG263/1 
 Page 29 
 
 
  networks and services and regulatory measures are contained in Chapter 11.  In addition, a few 
telecommunication-related measures ar e listed as non-conforming measures. 
112. For financial services, covered by Chapter 12, th e obligations of national treatment as regards 
investors and investment in financial institu tions, MFN treatment, market access for financial 
institutions, and senior management and boards of directors apply fully, subject to the 
non-conforming measures listed in Annex III of the Agreement.  Notwithstanding the negative list 
approach, specific liberalization co mmitments are made by the Parties, on a positive-list basis, for 
national treatment, with respect to cross-border trade for financial services sectors and sub-sectors specified in Annex 12-A.
42  Annex 12-B also contains some additional specific commitments by the 
Parties.43 
1. Non-conforming measures 
113. Annex I to the Agreement contains the Schedul e of the Parties setting out existing measures 
that are not subject to some or all of the oblig ations taken under the Agre ement relating to national 
and most-favoured-nation treatment , market access, local presen ce, performance requirements or 
requirements for senior management and boards of dir ectors.  It represents a standstill commitment, as 
a Party (at central and/or regional government levels) will be able to maintain the measu res listed that 
do not comply with these obligations, but will not be ab le to increase the trade restrictiveness of those 
measures.  Each reservation in Annex I contains:  the sector and sub-sector to which the reservation 
relates;  the obligation(s) against which the reservatio n is taken;  the level of government to which the 
measure applies;  the description of the measure, and an indication of whether the reservation relates 
to cross-border trade in services (modes 1, 2 and 4 covered by Chapter 9) and/or to investment, 
covered by Chapter 10. Where measures listed in An nex I are autonomously liberalised by one Party 
to the Agreement, a more restrictiv e measure can not be reintroduced (A rticle 9.7.1(c)). This so-called 
"ratchet mechanism" has the effect of “locking in” future further liberalization reforms and preventing 
expansion of restrictive measures, despite the r eservations contained in the List of non-conforming 
measures (as contained in Annex I). 
114. In addition, Annex II contains the Schedule of the Parties setting out the specific sectors, 
sub-sectors, or activities for which they may maintain  existing, or adopt new or more restrictive, 
measures that do not confirm with obligations unde r the Agreement for national and MFN treatment, 
market access, local presence, performance requireme nts or requirements for senior management and 
boards of directors.  Annex II is therefore a broade r carve-out than Annex I, allowing the Parties to 
retain existing measures and introduce new, more trade-restrictive measures for the sector, subsectors 
and activities described there. 
 
                                                      
42 Annex 12-A contains commitments by Australia and by Chile with respect to certain activities in the 
areas of Insurance and insurance-related services  and Banking and other financial services 
(excluding insurance) . 
43 In relation with activities of Australian investors involved in Pension Funds Management  in Chile, 
of Australian financial institutions involved in Voluntary Savings Plans -related activities in Chile, and of any 
Party's financial institution involved in Portfolio Management  in the other Party. WT/REG263/1 
Page 30  
 
  115. Annex III contains non-conforming measures with r espect to financial services.  Reservations 
for existing non-conforming measures, subject to a standstill commitment
44 or a "ratchet 
mechanism"45 are listed in Section 1 of Annex III, while reservations for "future" measures are listed 
in Section 2.  
116. The provisions in Chapters 9-13 must be read  in parallel with the Schedules contained in 
Annexes I-III. 
(a) Australia 
117. Australia's WTO Schedule of specific commitments covers all 11 general sectors defined in 
the Services Sectoral Classification List.46  Australia scheduled horizontal limitations, in particular, 
relating to commercial presence, in connection w ith the examination under Australia's foreign 
investment policy guidelines and the Foreign Acqui sitions and Takeovers Ac t (1975).  Mode 4 is 
unbound except for measures concerning the entry and temporary stay of four categories of natural 
persons.47  In the context of the DDA negotiations, Australia has presented a revised services offer.48 
118. In the Agreement, commitments by Australia are based on a negative list where all sectors or 
sub-sectors are assumed to be liberalized for each ot hers' services providers unless otherwise specified 
in the relevant Annexes (non-conforming measure s).  The following Tables summarize Australia's 
Annex I and II reservations. 
119. Table IV.1 summarizes the limitations on exis ting non-conforming measures in services and 
investment for Australia.  Australia, like Chile, has listed limitations in:  some professional services;  
telecommunications services;  distribution services;  education services;  and transport services.  Australia has also listed limitations  in construction and re lated engineering services;  environmental 
services;  and recreational, cultural and sporting services.  Australia's health-related and social 
services, electric energy and gas industries are listed under existing or new non-conforming measures 
in Annex II.  
Table IV.1 
Non-conforming measures listed by Australia in Annex I 
Sector Obligations Coverage Description 
All sectors NT/SMBD I Advanced notification to and prior approval from the Australian 
Government for certain investment activities.  
All sectors SMBD I Residence requirement for certain personnel. 
All sectors LP/SMBD CBTS/I Residence requirement  for performing registration, or applying for 
incorporation of an association, and for certain personnel. 
All sectors LP/SMBD CBTS/I Residence requirement  for performing registration of cooperatives, 
and for certain personnel. 
All sectors LP CBTS Registration requirement for limited partnership. 
All sectors LP CBTS Requirement to maintain an office in Australia for a promoter of a 
third party trading scheme. 
Professional services NT CBTS/I No access to prac tising certificate and prohi bition to share profits 
with any other company or firm fo r a company that is a subsidiary 
of a foreign law firm.  Foreign natural persons practising foreign 
law may only join a local law firm as a consultant and may not enter 
into partnership with or employ local lawyers (South Australia). 
Professional services LP CBTS Residence requirement for patent attorneys in order to register to 
practice in Australia.  
                                                      
44 in relation with the conformity of the measure with provisions on Market Access and Cross-Border 
Trade (Article 12.10.1(c)(ii)). 
45 in relation with the conformity of the measure with provision on National Treatment, Most-Favoured 
Nation Principle, and Senior Management and Boards of Directors (Article 12.10.1(c)(i)). 
46 See WTO document MTN.GNS/W/120. 
47 See WTO document GATS/SC/6 and Suppl.1. 
48 See WTO document TN/S/O/AUS/Rev.1.  WT/REG263/1 
 Page 31 
 
 
  Sector Obligations Coverage Description 
Professional services LP/SMBD CBTS/I For a trustee company :  Residence requirement of certain personnel 
to carry on business, and to be  granted probate of a will or 
administer an estate;  Requirement of an office with in the territory. 
Professional services LP CBTS Auditing Services :  Residence requirement for certain personnel. 
Registration requirement to provide services.  
Professional services LP CBTS Architectural partnership / company :  Requirement to have a place 
of business or to be carrying on business within the territory in 
order to qualify for registration. 
Professional services NT/MFN CBTS Migration agent :  Australia Citizenship requirement (or permanent 
residence, or citizenship of NZ). 
Professional services NT/LP CBTS Customs broker :  Requirement to provide the service in and from 
Australia. 
Research and Development 
services NT CBTS/I Conduct of biodiscovery research and commercialization: For 
Benefit sharing agreements, sublicenses requirement for use of 
samples or derivates to conduct re search and commercialisation. 
Requirement to offer first to Queensland-based entities, then to 
Australian-based entities, and th en to overseas-based entities. 
Requirement to obtain prior consen t by Department before granting 
a sublicense to an overseas-based entity. 
Real Estate and Distribution 
services NT/LP CBTS/I Residence requirement to be appointed as an agent. Requirement to 
maintain a registered  office in Australia. 
Fishing and Pearling LP/NT/SMB
D CBTS/I Prior authorization necessary fo r foreign fishing vessels operating in 
the Australian Fishing Zone. foreig n fishing vessels' authorization 
subject to a levy.  Prohibition for foreign person / body to hold 
shares in a share management fi shery.  Residence / Registration 
requirement to obtain a Fishery access licence or an aquaculture 
licence. Foreign investment limit fo r lobster processing. Citizenship 
requirement to be licensed in the Western Australian pearling industry. Australian ownership / control (at least 51%) requirement for corporations, partnerships  or trust holding licenses. 
Mining and Related Services PR I Residence require ment for certain personnel.  Preference (where 
possible) to local suppliers, manufacturers and contractors. 
Other business services LP/SMBD CBTS/I Eligibility for the grant of an ope rator's license or a manager's 
license (Escort Agency Business):   Residence requirement. 
Telecommunications NT/SMBD I Limitation to the leve l of Aggregate foreign equity (no more than 
35% of shares of Telstra). Individual or associated group foreign 
investment is restricted to no more than 5% of shares. 
Citizenship requirement for certai n personnel (majority of directors 
of Telstra).  Localisation in Austra lia for Head office, main base of 
operations and place of incorporation. 
Distribution services LP CBTS Residence requirement for a grant of a firearms licence. 
Distribution services LP CBTS License requirement  for liquor-, and/or tobacco retail distribution 
services.  Residence requirement for applicant for a retail licence 
for kava. 
Distribution services PR I For Wine merchant's license:   Requirement to contribute to the 
Queensland wine industry in a substantial way.    
To obtain a wine producer's licence to sell wine:   Requirement to 
sell wine made from fruit grown on the premises to which the licence relates, or selling wine made on the premises to which the 
licence relates. 
Retail Trade and Health services NT/L P CBTS Citizenship or residence requirement to practices as pharmacist 
(Tasmania).  Residence requirement to practise as pharmacist 
(Western Australia) 
Professional and Health services NT/LP CBTS Citizenship  or residence requirement to practices as medical 
practitioner, psychologist, physiothe rapist, radiation therapist, 
diagnostic radiographer, nucl ear medicine technologist, 
chiropractor, osteopath, optometrist , dental practitioner, dental 
prosthetist and podiatrist (Tasmania).  Residence requirement to 
practise as occupational therapist, podiatrist or psychologist 
(Western Australia) 
Health NT/SMBD I For appointment, replacement  or removal of more than one third of 
CSL's (Commonwealth Serum Laboratories) directors who hold 
office at a particular time, the votes attached to significant foreign shareholdings are prevented from being counted.  Head Office and 
principal facilities in Australia.  C itizenship requirement for certain 
personnel.  
Tourism and Travel-related 
services NT/LP CBTS/I Travel agent : Local business address to obtain a license 
(Queensland and Western Australia). 
 WT/REG263/1 
Page 32  
 
  Sector Obligations Coverage Description 
Recreational, cultural and 
sporting services LP CBTS Licenced wildlife authority :  Office in the State. 
For cultivator or propagator for protected plants :  Approval upon 
residence requirement, and premises in the State.  Citizenship or 
residence or establishment requirement. 
Transport  NT/LP CBTS/I International liner cargo shipping services (to or from Australia):   
Residence requirement for representation in Australia. Application to the Australi an competition and consumer 
commission :  Citizenship requireme nt for flag operators. 
Transport NT/SMBD I Australian international airlines (other than Quantas):   Limited 
foreign participation (maximum 49%).  Citizenship requirements 
for certain personnel. 
Transport NT/SMBD I Quantas Airways Ltd.:   Maximum 49% foreign participation;  
Citizenship requirement for certain personnel 
Transport  LP CBTS Taxi license:   Residence requirement (Northern Territory) 
Note: CBTS:  Cross-border trade in services ;  I: Investment;  LP: Local presence requi rements;  PR: Performance requirements;  
NT:  National treatment restriction;  MFN:  Most-favoured-na tion restriction;  SMBD:  Senior management and boards of 
directors restriction. 
 
Source : Annex I, the Free Trade Agreement between Australia and Chile. 
 
120. Table IV.2 summarizes Annex II wh ere Australia has reserved the right to adopt or maintain 
existing or future measures in th e specific sectors, sub-sectors or activities listed.  In general, both 
countries maintain such measures in  sectors similar to those in Annex I above.  Both Parties have 
reservations in some professional business services (e .g. credit reporting services, real estate services, 
legal services, and printing and publishing services);  communication services;  distribution services;  education services;  transport services;  and some other services (e.g. betting and gambling services). 
Table IV.2 
Non-conforming measures listed by Australia in Annex II 
Sector   Obligations Mode Description 
All sectors NT/PR/LP/ 
SMBD CBTS/I Acquisition, establishment or operation of any commercial or industrial 
undertaking in the service sector:   Any measure according preferences to 
any indigenous person or organisati on or providing for the favourable 
treatment of any indigenous person or organisation 
All sectors NT/PR I Any measure with respect to proposals by "foreign persons" to invest in 
Australian urban land, other than de veloped non-residential commercial 
real estate. 
All sectors NT/PR/SMBD I Any measure with respect  to  (a) devolution to the private sector of 
services provided in the exercise of governmental authority; and (b) privatisation of government  owned entities and assets. 
All sectors NT/MFN/LP/ 
PR/SMBD CBTS/I Any measure with respect to th e provision of law enforcement and 
correctional services, and the following se rvices to the extent that they are 
social services established or maintained for a public purpose: income 
security or insurance, so cial security or insuran ce, social welfare, public 
education, public training, health , child care, public utilities and public 
transport. 
Agriculture NT CBTS/I Any measure with respect to marketing board 
Communication Services, 
and Recreational, Cultural 
and Sporting services NT/MFN/PR/ 
LP/SMBD CBTS/I Any measure with respect to: (a) cr eative arts, cultural heritage and other 
cultural industries, including audiovisual services, entertainment services 
and libraries, archives, museums and other cultural services; (b) broadcasting and audiovisual services, including measures with respect to 
planning, licensing and spectrum ma nagement, and including services 
offered in Australia and international services originating from Australia. 
Education services NT/MFN/PR/ 
LP/SMBD CBTS/I Any measure with respect to primary education 
Education services NT/MFN/PR/ 
LP/SMBD CBTS/I Any measure with respect to the supply of public secondary and higher 
educational services. 
Gambling and Betting NT/PR/LP/ 
SMBD CBTS/I Any measure  
Maritime Transport NT/PR/LP/ 
SMBD CBTS/I Any measure with respect to maritime cabotage services and offshore 
transport services. 
Maritime Transport NT I Any measure with respect  to the registration of vessels in Australia. 
Table IV.2 (Cont'd)   WT/REG263/1 
 Page 33 
 
 
  Sector   Obligations Mode Description 
Transport NT/SMBD I Any measure with respect to investment tin federal leased airports. 
All Sectors MFN CBTS/I Any measure that accord s more favourable treatment to the service 
suppliers or investors of non-Partie s under any bilateral or multilateral 
international agreement in force or signed prior  to the date of entry into 
force of the Agreement.  Any m easure that accords more favourable 
treatment to the service suppliers or investors of non-Parties under any 
bilateral or multilateral internati onal agreement in force or signed after  the 
date of entry into force of the Agreement involving: (a) aviation; (b) fisheries; or (c) maritime matters, including salvage. 
Note: CBTS:  Cross-border trade in services ;  I: Investment;  LP:  Local presence requirements;  MFN:  Most-favoured-nation 
restriction;  NT: National treatment restriction;  PR: Perf ormance requirements;  SMBD: Restrictions affecting senior 
management and board of directors. 
 
Source: The Free Trade Agreement between Australia and Chile, Annex II. 
 
121. In connection with the implementation of its MFN treatment obligations, Australia included 
in its WTO list of MFN exemptions reservations on audiovisual services (preferential co-production 
arrangement for film and television productions) and in financial services on access to the Australian 
Stock Exchange, which is based on reciprocity. 
122. In the Agreement, Australia listed exis ting non-conforming measures, and sectors, 
sub-sectors, or activities for which it may maintain  existing, or adopt new or more restrictive 
non-conforming measures which may derogate, inter alia , to the MFN principle.  Such derogations 
would mean that Australia could take measure s in the identified area, which may introduce 
preferential treatment in favour of services or service providers other than from Chile under any 
bilateral or multilateral agreement in force or signe d prior to the date of entry into force of the 
Agreement.  Moreover, Australia may also take any measure that accords more favourable treatment 
to non-Chilean service suppliers or investors under any bilateral or mu ltilateral international 
agreement in force or signed after the date of  entry into force of the Agreement involving: 
(a) aviation; (b) fisheries; or (c) maritime matters , including salvage.  Reserv ations with regard to, 
inter alia , MFN are also taken for professional services, communication services, and education 
services. 
123. In connection with non-conforming measures rela ted to market access (Art. 9.5), Australia 
reserved the right to adopt or maintain any measur es, except for sectors and sub-sectors subject to the 
limitations and conditions listed in the relevant section of A nnex II.  These sectors and sub-sectors 
essentially mirror those for which Australia has ma de specific commitments in its GATS Schedule. 
For each sector or sub-sector, Australia's Annex II lists limitations applicable by mode of supply, 
following an approach similar to, and with a simila r content as to that contained in Australia's first 
revised offer in the context of the DDA negotiations. 
(b) Chile 
124. Chile's WTO Schedule of specific commitments includes 5 of the 11 general sectors defined 
in the Services Sectoral Classification List, namely: business services, communications services, 
financial services, tourism and travel related services, and transport services;  in the last of these sectors, Chile only undertook commitments in auxiliary air transport services.  Chile maintains horizontal limitations relating, inter alia , to commercial presence.  In mode 3, Chile's commitments 
extend only to suppliers of services who operate in  Chile through a commerc ial presence, when they 
establish themselves as a foreign investor and comply  with the foreign direct investment rules and 
legal procedures in force.  As an additional hor izontal commitment, mode 4 is unbound except for 
measures concerning the transfer of natural persons within a foreign enterprise established in Chile in WT/REG263/1 
Page 34  
 
  accordance with Chile's commitments under mode 3 (commercial presence).  In the context of the 
DDA negotiations, Chile has presented a conditional revised offer.
49 
125. Like in the case of Australia, Chile's commi tments under the Agreement are based on a 
negative list where all sectors or sub-sectors are assu med to be liberalized for each others' services 
providers unless otherwise specified in the relevant  Annexes (non conforming measures).  This apply 
in particular to the six general sectors for which Chile did not make any specific commitments under 
the GATS.  The following Tables summarize Chile's Annex I and II measures. 
126. Tables IV.3 summarizes the limitations on existing non-conforming measures in services and 
investment for Chile.  Like Australia, Chile has li sted limitations in:  some professional services;  
telecommunications services;  distribution services;  education services;  and transport services.  In 
addition, Chile has also listed limitations in h ealth-related and social services and power and gas 
related services.   
Table IV.3 
Non-conforming measures listed by Chile in Annex I  
Sector Obligations Coverage Description 
All sectors NT I Limitation to access and use of "State land":  Citizenship 
requirement (with exceptions). Acquisition of land limitations: Citizenship requirement (with exceptions). 
All sectors NT/LP CBTS For employers with more than 25 employees: 
Citizenship requirement for a minimum of 85% of employee 
(exceptions for technical personnel who cannot be replaced by Chilean personnel). 
Communications NT/MFN/PR
/ 
SMBD/LP CBTS/I Owner of a social communication medium (sound and image 
transmissions, national news agency): Residence or establishment 
requirement;  Citizenship require ment for certain personnel. 
Access to public radio broadcasting concessions:  Reciprocity 
requirement. Programs broadcast through public  (open) television channels:   
Local content (of Chilean production) requirement. 
Holder of permits for radio broadcasting telecommunications 
services: Residence / establishment requirement. 
Holder of permits for limited cable television or microwave 
television services: Residence / establishment requirement. 
Energy NT/PR I Administrative concessions or special operating contracts for 
exploration, exploitation, and treatment of liquid or gaseous 
hydrocarbons, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially 
located in areas classified as impor tant to national security with 
mining effects, which qualification shall be made by law only:   
Requirements and conditions to be determined, in each case, by a 
Supreme Decree of the President of the Republic. 
Production of nuclear energy for peaceful purposes:   O nl y  by  t he 
Chilean Nuclear Energy Commission, or with its authorization, 
jointly with third persons. 
Mining NT/PF I Administrative concessions or special operating contracts for 
exploration, exploitation, and treatment of lithium, deposits of any 
kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or parti ally located in areas classified 
as important to national security with mining effects, which 
qualification shall be made by law only:   Requirements and 
conditions to be determined, in each case, by a Supreme Decree of 
the President of the Republic. 
Purchase of mineral products from mining operations in Chile when thorium or uranium are contained in a significant amounts therein:  
Right of first refusal for Chile (for its purchase). 
Table IV.3 (Cont'd) 
 
 
 
                                                      
49 See WTO document TN/S/O/CHL/Rev.1  WT/REG263/1 
 Page 35 
 
 
  Sector Obligations Coverage Description 
Fisheries – Aquaculture NT I Use of beaches, land adjacent to beaches, water-columns and sea-
bed lots to engage in aquaculture activities:   Concessions/ 
authorization required;  Citizenship / Establishment requirement to 
hold an authorization or a concession. 
Fisheries NT/MFN/ 
SMBD/LP CBTS/I Harvesting and Catching of hydro bi ological species in territorial 
sea and in the exclusive economic zone:  Permit issued by the Vice-
Ministry of  Fishing;  Citizensh ip / Establishment and residence 
requirement. 
For vessels fishing in internal waters, in the territorial sea and in the exclusive economic zone:  Limited only to "Chilean vessels" 
(mandatory registration of  the vessel in Chile). 
Registration of a vessel (Possible e xceptions in case of reciprocity):  
Citizenship / establishment require ment;  Citizenship requirement 
for certain personnel. 
Registration for access to sm all-scale fishing activities : Citizenship 
or residence requirement. 
Sports, industrial fishing and hunting, and recreational services LP CBTS Ownership of guns, explosives or similar substances:   Registration 
requirement. Imports of fireworks:   Registration / authorization requirement. 
Holding pyrotechnical shows:  Authorization by the Supervisory 
Authority. Production and execution of pyrotechnical shows: Presence of 
registered expert handler personnel. 
Specialised services – Customs Agents and Brokers NT/LP CBTS Citizenship requirement. 
Specialised services – Private 
Armed Security Guards NT CBTS Citizenship requirement. 
Business services – Research 
services NT CBTS Foreign natural and juridical pers ons intending to conduct research 
in the Chilean 200-mile maritime zone:  Request submitted to the 
Chilean Army Hydrographic Institu te six months in advance and 
compliance with established requirements. 
Business services – Research 
services NT CBTS Explorations for work of a scie ntific or technical nature, or 
mountain climbing, in areas that are adjacent to Chilean borders:   
Authorization required (application through a Chilean consul in the 
country of domicile of the person) ;  consideration of the request by 
the National Directorate of Borders and Frontiers of the State. 
Business services – Research in 
social sciences NT CBTS Excavations, surveys, probing and/or collecting anthropological, 
archaeological or paleontological material: Permit required, 
collaboration with a Chilean governme nt scientific institution or a 
university required. 
Business services – Printing, 
publishing and other related 
industries NT/MFN/ 
SMBD/LP CBTS/I Owner of a social communication medium (newspaper, magazine or 
regularly published texts whose publishing address is located in 
Chile, or news agency):   Residence / establishment requirement;  
Citizenship requirement and residence of certain personnel. 
Professional services – Professional, technical and specialised services NT/LP CBTS External auditors of financial institutions:  Registration requirement 
(Registry of External Auditors kept by the Supe rintendency of 
Banks and Financial Institutions and the Superintendency of Stock 
Corporations and Insurance Companies);  Requirement to be 
incorporated in Chile as partnershi ps or associations and main line 
of business in auditing services to  be inscribed in the Register. 
Professional services – Legal 
services NT/MFN/LP CBTS To practice as "lawyers" ("Abogados"):  Citizenship or residence 
requirement, if the totality of the legal studies completed in Chile. 
To plead a case in Chilean courts to file the first legal action or 
claim of each party:  Access limited to "lawyers". 
Drafting of certain legal documents:  performed only by lawyers 
(exception for Ecuadorian citizens holding a lawyers degree granted 
by a University in Ecuador). 
Professional, technical and 
specialized services NT/LP CBTS Justice ancillaries ("auxiliaries de justicia"):  Residence 
requirement. 
Public defenders ("defensores publicos"):  Citizenship requirements. 
Archivists ("archiveros") and arbitrators at law ("arbitros de derecho"):  limited to lawyers and citizenship or residence 
requirement. 
Process servers ("receptors judiciales") and superior court attorneys ("procuradores del numero"):  Citizenship or residence 
requirement and voting right. 
Auctioneers ("martilleros publicos"):  Citizenship or residence 
requirement. 
Table IV.3 (Cont'd) 
 WT/REG263/1 
Page 36  
 
  Sector Obligations Coverage Description 
   Receivers in bankruptcy (sindicos de quiebra):  Professional or 
technical degree granted by a unive rsity or an institute recognised 
by Chile, and appropriate experience.  
Transportation NT/MFN/ 
SMBD/LP CBTS/I Registration of an aircraft: Citi zenship / establishment in Chile.;  
Majority ownership by Chileans;  Citizenship requirement for certain personnel. Presence of foreign registered private aircraft engaged in non-
commercial activities:  Limited to 30 days (with exceptions). 
Crew members on aircraft used by a Chilean aviation company:  Chilean licence required. 
Foreign aviation personnel:  Validation of the licence / authorization 
by the Chilean civil aviation authorities (or validation when 
reciprocity granted)  
Air transportation services (cabotage):  Subject to reciprocity. 
Entry to Chilean territory (in case foreign civil aircraft are not engaged in commercial transpor t activities or in non-scheduled 
commercial air transport):  Notification to the General Directorate 
for Civil Aeronautics at least 24 hours in advance. 
Transportation NT/MFN/ 
SMBD/LP CBTS/I Registration of a vessel :  Principal domicile and effective seat 
requirement;  Citizenship requirement for certain personnel;  
Chilean ownership of at least 50;  Joint ownership possible with Chilean citizenship of certain personnel. 
Registration of special vessel:  Possible but limited under condition 
of residence , principal head office in Chile, or undertaking of profession or commercial activity  in a permanent way in Chile. 
Special restrictions possible. 
Maritime sector :  Use of pilotage, anchoring and harbour pilotage 
services can be required in certa in situations;  Citizenship / 
registration requirements for certain  personnel.;  Cabotage reserved 
for Chilean vessels (with exceptions) 
Transportation NT/SMBD/ 
LP CBTS/I Shipping agents or representatives of ship operators, owners or 
captains :  Citizenship requirement. 
Work of stowage and dockage :  Accreditation, and Citizenship 
requirement. When performed by juridical persons :  Registration requirement;  
Citizenship requirement for certain personnel.. 
Harbour workers :  Education requirement. 
Unloading, transhipping and, generally, using continental or 
insular Chilean port :  Citizenship / establishment requirement. 
Transportation NT/MFN/LP CBTS Land Transportation service providers : 
Registration in the National Regist ry (application to the Regional 
Secretary of Transport and Telecommunications). 
International land transportation services between Chile and Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay : 
Restricted to companies with actua l and effective domicile in Chile 
and organised under the laws of Chile, Argentina, Bolivia, brazil, Peru, Uruguay or Paraguay. 
Transportation NT/MFN CBTS Motor vehicles bearing foreign licence plates  (temporary stay):  
Free access to the national territory (compliance with the requirements established by Chilean law). 
Holders of valid international driv ing licences or certificates issued 
in a foreign country :  Free access to the national territory 
(compliance with the requirement s established by Chilean law). 
Note: CBTS:  Cross-border trade in services;  I: Investment;  LP: Local presence requirements;  MFN:  Most-favoured-nation 
restriction;  NT:  National treatment restriction;  PR: Perf ormance requirements;  SMBD: Re strictions affecting senior 
management and board of directors. 
Source: The Free Trade Agreement between Australia and Chile, Annex I. 
 
127.  Table IV.4 summarizes Annex II where Chile h as reserved the right to adopt or maintain 
existing or future measures in the specific sectors, sub-sectors or activities listed.  Like Australia, in 
general, Chile has Annex II measures in similar sectors as for Annex I above.  Some professional 
business services (e.g. credit reporting services, real estate services, legal services, and printing and publishing services);  communication services;  distribution services;  education services;  transport 
services;  some other services (e.g. betting and gambling services) are reserved by both Parties. 
  WT/REG263/1 
 Page 37 
 
 
  Table IV.4 
Non-conforming measures listed by Chile in Annex II 
Sector Obligations Coverage Description 
All sectors NT/MFN I Any measure relating to th e ownership or control of land within five 
kilometres of the coastline that is  used for agricultural activities: 
Majority ownership requirement (for Citizens or residents)  
All sectors NT/SMBD I Any measure to prohibit or impose limitations on the ownership of any 
interest in stock or asset held in  an existing state enterprise or 
governmental entity and on the right of foreign investors or their 
investments to control any State comp any created thereby or investments 
made by the same.  
 
Any measure, in connectio n with any transfer or disposal, related to the 
nationality of Senior management and members of the board of Directors. 
All sectors MFN CBTS/I Any measure that accord differential treatment to countries under any 
bilateral or multilateral internati onal agreement in force on, or signed 
prior  to the date of entry into  force of the Agreement. 
 
Any measure that accord differential treatment to countries under any bilateral or multilateral internati onal agreement in force on, or signed 
after  the date of entry into force of th e Agreement, involving (a) aviation; 
(b) fisheries, or (c) maritime matters, including salvage. 
Communications – One 
way satellite 
broadcasting of digital telecommunication 
services, whether these 
involve direct home television broadcasting, 
direct broadcasting of 
television services and direct audio broadcasting; 
supplementary 
telecommunication services. NT/MFN/LP CBTS Any measure related to cross-border trade in one way satellite 
broadcasting of digital telecommunication services, whether these 
involve direct home television broa dcasting, direct broadcasting of 
television services and direct a udio broadcasting; supplementary 
telecommunication services. 
Communications – One 
way satellite broadcasting of digital 
telecommunication 
services, whether these involve direct home 
television broadcasting, 
direct broadcasting of television services and 
direct audio 
broadcasting; supplementary 
telecommunication 
services. NT/MFN/PR/ 
SMBD I Any measure related to the investors of Australia or to their investments 
in one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct 
broadcasting of television services  and direct audio broadcasting; 
supplementary telecommunication services. 
Issues involving 
minorities NT/MFN/PR/ 
SMBD/LP CBTS/I Any measure according rights or pref erences to socially or economically 
disadvantaged minorities. 
Issues involving 
minorities NT/MFN/PR/ 
SMBD/LP CBTS/I Any measure denying investors of  Australia and their investments or 
service suppliers of Australia any rights or preferences provided to 
indigenous people. 
Fisheries – Fishing-
related activities (CPC 882, 04) NT/MFN CBTS/I Any measure to control the ac tivities of foreign fishing, including fish 
landing, first landing of fish processe d at sea and access to Chilean ports 
(port privileges). 
 
Any measure to control the use of  beaches, land adj acent to beaches, 
water-columns and sea-bed lots for the issuance of maritime concessions 
(not covering aquaculture). 
Cultural industries MFN CBTS/I Any measure that acco rds differential treatment to countries under any 
existing or future bilateral or multi lateral international agreement with 
respect to cultural industries, such as audiovisual cooperation 
agreements.  
Social services (CPC 
913, 92, 93) NT/MFN/PR/ 
SMBD/LP CBTS/I Any measure with respect to the supply of public law enforcement and 
correctional services, and the following services to the extent that they 
are social services established or maintained for reasons of public 
interest: income security or insurance, social security or insurance, social 
welfare, public education public trai ning, health care and child care. 
Table IV.4 (Cont'd) WT/REG263/1 
Page 38  
 
  Sector Obligations Coverage Description 
Environmental services 
(CPC 94) NT/ MFN/LP CBTS Any measure imposing the requirement that the production and 
distribution of drinking water, the co llection and disposal of waste water 
and sanitation services, such as sewage systems, waste disposal and 
waste water treatment may only be  provided by juridical persons 
incorporated under Chilean law or  created in acco rdance with the 
requirements established by Chilean law. 
Construction services (CPC 51 – 52) NT/LP CBTS Any measure with respect to the supply of construction services by 
foreign juridical persons or lega l entities imposing requirements of 
residence, registration and/or any other form of local presence, or imposing the obligation of giving fi nancial security for work as a 
condition for the supply of construction services. 
Note:  CBTS:  Cross-border trade in servi ces;  I: Investment;  LP:  Local presence requirements;  MFN:  Most-favoured-nation 
restriction;  NT:  National treatment restriction;  PR: Perf ormance requirements;  SMBD: Restrictions affecting senior 
management and board of directors. 
 
Source: The Free Trade Agreement between Australia and Chile, Annex II. 
 
128. In connection with the implementation of its MF N treatment obligations, Chile included in its 
WTO list of MFN exemptions reservations on the dis pute settlement procedures in existing and future 
bilateral treaties on the protection of investment; r eciprocal measures concerning access to freight by 
Chilean vessels; the Bilateral Agreement on Mari time Freight Transport with Brazil (1974); the 
taxation of maritime freight rates and commi ssions; maritime cabotage; the 1977 Agreement on 
International Land Transport with Argentina, Bo livia, Brazil, Paraguay, Peru and Uruguay; and 
audiovisual services.  
129. In the Agreement, Chile listed existing non-conf orming measures, and sectors, sub-sectors, or 
activities for which it may maintain existing, or adopt new or more restrictive non-conforming 
measures which may derogate, inter alia , from the MFN principle.  Such derogations would mean that 
Chile could take measures in the identified area, wh ich may introduce preferential treatment in favour 
of services or service providers other than from Au stralia under any bilateral or multilateral agreement 
in force or signed prior to the date of entry into force of the Agreement.  Moreover, Chile may also 
take any measure that accords more favourable treatment to non-Australian service suppliers or 
investors under any bilateral or multilateral internati onal agreement in force or signed after the date of 
entry into force of the Agreement involving: (a) avia tion; (b) fisheries; (c) maritime matters, including 
salvage, or (d) with respect to cultural industries, such as audiovisual cooperation agreements.  More 
reservations with regard, inter alia , to MFN treatment are made for communications, fisheries, 
business services, transportation, or social and environmental services. 
130. In connection with non-conforming measures re lated to Market Access (Art. 9.5), Chile 
reserved the right to adopt or maintain any measur es, except for sectors and sub-sectors subject to the 
limitations and conditions listed in the relevant sec tion of Annex II.  These sectors and sub-sectors are 
in addition to those for which Chile has made a specific commitment in the GATS and those included 
in Chile's conditional revised offer in the DDA.   Moreover, while Chile's GATS commitments 
essentially cover mode 3, it's commitments in the Ag reement often cover modes 1, 2, and 3, albeit 
sometimes with certain limitations. For each sector  or sub-sector, Chile's Annex II Schedule lists 
limitations by mode of supply, following an approa ch similar to, but with more extensive coverage, 
than in its GATS Schedule of specific commitments. 
 
 
 
     WT/REG263/1 
 Page 39 
 
 
  E. SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Telecommunication services 
131. Chapter 11 of the Agreement contains speci fic provisions related to the provision of 
telecommunication services.50  The Chapter builds on the Partie s' obligations under the GATS Annex 
on Telecommunications and the WTO Reference Paper on Basic Telecommunications.  It ensures that 
all service suppliers of the other Party have acc ess to and can use any public telecommunications 
network or service offered in its territory or acro ss its borders in a timely fashion, on reasonable and 
non-discriminatory terms and conditions.  It covers  measures adopted or maintained by the Parties 
relating to suppliers of public telecommunicati on networks and services as well as measures relating 
to the conduct of major suppliers.51  Chapter 11 also covers ot her measures relating to public 
telecommunication networks or services. 
132. Specifically, the Chapter provides more deta iled commitments on in terconnection and has 
additional commitments in the areas of access to essential facilities and co-location, as well as resale, 
dialling parity, number portability, submarine cable systems and leased circuit services.  The Chapter 
contains obligations on the independence of teleco mmunications regulators and requires that decisions 
and the basis for such decisions, of telecommunicati ons regulators are clear and on-discriminatory.  It 
also provides procedures to resolve telecommunications disputes. 
2. Financial Services 
133. Chapter 12 of the Agreement covers Fi nancial Services.  It incorporates mutatis mutandis  the 
following provisions in Chapters 9 (Cross-Bord er Trade in Services) and 10 (Investment): 
- Denial of benefits (Art. 9.10 and Art. 10.13); 
- Transfers (Art. 10.10); 
- Expropriation and compensation (Art. 10.11); 
- Special formalities and information requirements (Art. 10.12); 
- Investor-state dispute settlement (Section B of  Chapter 10), solely for breaches by a Party 
of provisions on transfers (Art. 10.10) a nd on denial of benefits (Art. 10.13). 
134. However, no other provision of Chapter 9 or Chapter 10 apply to measures adopted or 
maintained by a Party relating to financial institutions  of the other Party, investors of the other Party, 
and investments of such investors, in financial in stitutions in the Party's territory, and cross-border 
trade in financial services. 
135. Chapter 12 does not apply either to measures rela ting to activities or services forming part of 
a public retirement plan or statutory system of social security, or activities or services conducted for 
the account or with the guarantee or using the fina ncial resources of the Party, including its public 
entities.  However, if a Party allows any of these ac tivities or services to be provided by its financial 
institutions in competition with a public entity or a financial institution, Chapter 12 would then apply. 
                                                      
50 In the event of any inconsistency between this Chapter and another Chapter of the Agreement, the 
Chapter on telecommunication services preva ils to the extent of the inconsistency. 
51 Major suppliers mean suppliers which alone or together have the ability to materially affect the terms 
of participation (having regard to price and supply) in the relevant market for public telecommunications 
networks or services as a result of control over esse ntial facilities or use of a position in the market. WT/REG263/1 
Page 40  
 
  136. The key obligations of the Chapter are na tional treatment (Art. 12.3), MFN treatment 
(Art. 12.4), market access for financial institutions (Art. 12.5) and cross-border trade (Art. 12.6), as 
well as obligations with respect to senior mana gement and boards of directors (Art. 12.9).  
137. National treatment  is granted by a Party to investors of  the other Party with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of financial institutions and investments in financia l institutions in its territory.  A Party shall accord 
to cross-border financial services suppliers of the ot her Party, treatment no less favourable than that it 
accords to its own financial services suppliers, in like circumstances, with respect to the supply of the 
relevant service.  Similarly, national treatment is granted by a Party to financial institutions of the 
other Party as well as to investments of investors of the other Party in financial institutions with 
respect to the establishment, acquisition, expans ion, management, conduct, operation, and sale or 
other disposition of financial institutions and investments. 
138. Most-Favoured-Nation Treatment  is granted to financial institutions of the other Party as well 
as to investments of investors of the other Party in financial institutions, and cross-border financial 
service suppliers of the other Party.  Thus any bette r treatment than that guaranteed in the Agreement, 
when granted to financial institutions or investment s in financial institutions  of any non-Party would 
be automatically granted to financial institutions, i nvestment in financial institutions, or cross-border 
financial service suppliers of one of the Parties to the Agreement. 
139. Market access  is granted, without quantitative restrictions
52, to cross-border financial services 
suppliers of the other Party to supply the financial services specified in Annex 12-A of the Agreement.  This Annex identifies, separatel y for Australia and Chile, the insurance and 
insurance-related services as well as the banking and other financial services (excluding insurance) 
subject to cross-border trade commitments. 
140. Senior management and boards  of directors' obligations  provide that a Party cannot require 
that a financial institution of the other Party engag es individuals of any particular nationality as senior 
managerial or other essential personnel. In additio n, neither Party may require that more than a 
minority of the board of directors of a financial ins titution of the other Party be composed of nationals 
of the Party, persons residing in the territory of the Party, or a combination thereof.  
141. The above-mentioned obligations however do no t apply for non-conforming measures, as 
defined in Art. 12.10, which must be read in para llel with the measures sched uled by the Parties in 
Annex III.
53  Table IV.5 summarizes Annex III where Australia  has, in Section 1, reserved the right to 
maintain non-conforming measures in financial ser vices and in Section 2, the specific sectors, 
sub-sectors or activities for which it reserved the ri ght to maintain existing non-conforming measures, 
to modify them to make them more restrictive, or to take new measures.  
                                                      
52 Quantitative restrictions apply to the number of financial institutions, the total value of financial 
service transactions or assets, the total number of financial service operations or on the total quantity of financial 
services output, or on the total number of natural persons that may be employed in a particular financial service 
sector. 
53 Non-conforming measures taken by a local level of government do not need to be listed in Annex I 
to be excluded from the application of obligations contained in Art. 12.3, 12.4, 12.5, 12.6, and 12.9.  WT/REG263/1 
 Page 41 
 
 
  142. In relation to Annex III, Australia reserved the right to maintain and to add to its Schedule 
any non-conforming measures at the regional level of  government that existed at 1 January 2005, but 
was not listed in its Schedule at the date  of entry into force of the Agreement54 (Introductory Note for 
the Schedule of Australia – Annex III). 
Table IV.5 
Non-conforming measures listed by Australia in  Annex III (with respect to Financial Services) 
Sector Obligations Description 
Section 1 
Financial services NT A branch of a foreign bank that is authorised as a deposit taking institution in 
Australia (foreign ADI) is not permitted to accept initial deposits (and other funds) from individuals and non-corpor ate institutions of less than $A250'000. 
Financial services SMBD At least two of the directors of a public company must be ordinarily resident in 
Australia 
Financial services NT Liabilities of the Commonwea lth Bank and the Australian Industry Development 
Corporation (AIDC), previously Common wealth Government-owned, are covered 
by transitional guarantee arrangements. 
Financial services NT Approval of non-resident life in surers is restricted to subsidiaries incorporated 
under Australian law 
Financial services – Credit 
providers, debt collectors, and 
finance brokers NT A natural person (whether alone or in  partnership with other persons) or an 
incorporated body seeking to carry on a business of providing credit in Western 
Australia (including where the provision of the credit is connected with the 
carrying on of another business), must have  a principal office in Australia and a 
principal place of business in Western Australia. 
Any person (including an incorporated body) seeking to exercise or carry on the business or any functions of a debt collector in Western Australia, must have a 
principal place of business in the State. 
A natural person seeking to carry on bu siness as a finance broker in Western 
Australia must be ordinarily resident in Western Australia. A finance broker must 
have a registered office in Western Au stralia while carrying on business as a 
broker. 
Financial services – Credit 
providers, debt collectors, and 
finance brokers NT A person operating as a second-hand dealer or as a pawnbroker must have a 
principal place of business in Queens land where a document ca be served 
personally. A post office box does not suffice. 
Section 2 
Financial services MA Australia reserves the right to  adopt or maintain any m easure relating to Art. 12.5 
(MA for financial institutions), except fo r the Insurance and Insurance-related 
services and for the Banking and other fina ncial services (excluding insurances), 
which are subject to the limitations and conditions specified in Annex III, 
Schedule of Australia, Section 2 of the Agreement: 
Note: NT:  National treatment restriction;  SMBD:  Restric tions affecting senior manageme nt and board of directors. 
 MA:  Market access restriction. 
 
Source: Agreement Annex III. 
143. With regard to commitments made in relation with market access referred to in Annex III, 
Section 2, and in addition to the measures listed for all sectors, Australia reserved the right to adopt or 
maintain any measure, except for the sectors and sub-sectors subject to the limitations and conditions 
specified in the Annex.  The limitations and c onditions listed broadly mirror those contained in 
Australia's WTO Schedule of specific concessions, with some changes, in line w ith Australia's revised 
offer in the context of the DDA negotiations.  
144. Table IV.6 summarizes Annex III where Chile h as, in Section 1, reserved the right to 
maintain non-conforming measures in financial servi ces and in Section 2, listed the specific sectors, 
sub-sectors or activities for which it reserved the ri ght to maintain existing non-conforming measures, 
to modify them to make them more restrictive, or to take new measures.  
 
                                                      
54 This reservation applies in relation with obligatio ns contained in Art. 12.3 (National Treatment – 
Financial Services); Art. 12.4 (MFN – Financial Services ;  Art. 12.6 (Cross-Border Trade – Financial Services); 
or Art. 12.9 (Senior Management and Boards of Directors – Financial Services). WT/REG263/1 
Page 42  
 
  Table IV.6 
Non-conforming measures listed by Chile in Annex III (with respect to Financial Services) 
Sector Obligations Description 
Section 1 
Financial services – Banking 
and other financial services SMBD The directors, administrators, mangers  or legal representatives of legal entities 
performing the activities of stockbroker and securities agent must be Chileans or 
foreigners with a residence permit. 
Financial services – Banking and other financial services NT The capital of a foreign capital investment fund may not be remitted abroad until five 
years from the date in which the contribution was made. 
Financial services – Banking and other financial services NT Natural persons performing the activity of  stockbroker and securities agent in Chile 
must be Chileans or foreigners with a residence permit. 
Financial services – Insurance 
and Insurance-related services SMBD Administrators and legal representatives  of legal entities perf orming the activity of 
insurance brokerage must be Chileans or  foreigners with a residence permit. 
Financial services – Insurance 
and Insurance-related services NT Reinsurance brokerage can be performed by foreign reinsurance brokers. These 
brokers shall be juridical persons, demonstrat e that the entity is legally established in 
its country of origin and authorised to intermediate risks ceded from abroad, and 
provide the date that such authorisation was granted. Su ch entities shall designate a 
representative in Chile to represent them with broad powers. The representative may 
be subject to summons and must have residence in Chile. 
Financial services – Insurance 
and Insurance-related services SMBD The administrators and legal representa tives of legal entities performing the activity 
of claim settlement must be Chileans or foreigners with a residence permit. 
Financial services – Insurance 
and Insurance-related services NT In the case of the types of insurance covered in Decreto Ley 3'500 , involving the 
cession of reinsurance to foreign reinsurers, the deduction for reinsurance cannot 
exceed 40% of the total of the technical re serves associated with those types of 
insurance or a higher percentage if set by the Superintendencia de Valores y Seguros . 
Financial services – Insurance 
and Insurance-related services NT Natural persons performing the activity of  insurance brokerage and claim settlement 
must be Chileans or foreigners with a residence permit. 
Section 2 
Financial services – All subsectors MA Chile reserves the right to adopt measures that restrict or require specific types of 
juridical form or establishment, such as  subsidiaries, with respect to financial 
conglomerates, including the entities forming part of it. 
Financial services – All subsectors CBTS  The purchase of financial services, by pers ons located in the territory of Chile and its 
nationals wherever located, from financial services suppliers of Australia shall be 
subject to the exchange rate regulations adopted or maintained by the Banco Central 
de Chile  in accordance with its Organic Law ( Ley 18.840 ). 
Financial services – All 
subsectors NT/SMBD In the transfer or dispos al of any interest in stock or asset held in an existing state 
enterprise or governmental entity, Chile reserves the right to prohibit or impose 
limitations on the ownership of said interest  or asset, and on the right of foreign 
investors of their investment to control any State company created thereby or 
investments made by the same. In connecti on with any such transfer or disposal, 
Chile may adopt or maintain any measure related to the nationality of senior 
management and member of the board of directors.  
Financial services – Banking 
and other financial services NT Chile may grant advantages or exclusive rights to Banco del Estado de  Chile , a 
Chilean state owned bank, including but  not limited to the following: the 
management of the Chilean government fi nancial resources is made only through 
deposits in the Cuenta Unica Fiscal  and in its subsidiary accounts, all of which must 
be kept at Banco del Estado de Chile . 
Financial services – Insurance 
and Insurance-related Services CBTS All types of insurance that Chilean la w makes or may make compulsory, and all 
insurance related to social secruty, cannot  be contracted outside Chile. This non-
conforming measure shall not apply to the types of insurance included in Chile's 
commitments listed in subparagraphs 2(a)(i) and 2(a)(ii) of Annex 12-A (Cross-
Border Trade). 
Financial services – Social 
services NT/MFN/ 
MA/CBTS/ 
SMBD Chile reserves the right to adopt or maintain any measure with respect to the 
provision of public law enforcement and co rrectional services, and the following 
services to the extent that they are social services established or maintained for 
reasons for public interest: income security or  insurance, social security or insurance, 
social welfare, public education, public  training, health care and child care. 
Note:  SMBD:  Restrictions affecting senior  management and board of directors;  NT:  National treatment restriction;  MA:  Mark et 
access;  CBTS:  Cross-border trade in services ;  MFN:  Most-favoured-nation restriction. 
Source: Agreement Annexe IIII. 
145. With regard to commitments made in relati on to market access referred to in Annex III, 
Section 2, and in addition to the measures listed for all sectors, Chile reserved the right to adopt or 
maintain any measure, except for the sectors and sub-sectors subject to the limitations and conditions 
specified in its Schedule.  The limitations and co nditions listed broadly mirror those contained in 
Chile's WTO Schedule of specific concessions essentially for the provision of services through mode 
3, with a number of changes, most of which are contained in Chile's conditio nal revised offer in the 
context of the DDA negotiations.   WT/REG263/1 
 Page 43 
 
 
  146. Chapter 12 also contains disciplines on new financial services (Art. 12.7)55, treatment of 
certain information (Art. 12.8) , recognition (Art. 12.12), transparency (12.13), self-regulatory 
organisations (Art. 12.14), payment and clearing systems (Art. 12.15).  
147. Exceptions including for prudential reasons are c overed by Art. 12.11 to ensure the integrity 
and stability of the financial system.  These dr aw on GATS provisions on financial services and 
recognise the rights of the Parties to take measure s necessary for prudential reasons while seeking to 
ensure that these and other regulatory actions do not  become unnecessary or discriminatory barriers to 
trade. 
148. Chapter 12 addresses Dispute Settlement (Art. 12.17 complemented by Annex 12-C) by 
referring to the dispute settlement mechanism covering the Agreement in Chapter 21 while 
introducing a few modifications specifically applicable  for disputes with respect to financial services. 
A specific procedure is set up for addressing investment disputes in financial services (Art. 12.18).  
F. REGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation 
149. Article 9.8 on domestic regulation contains a n ecessity test with respect to measures relating 
to qualification requirements and procedures, tec hnical standards, and licensing requirements.  
Pursuant to Art. 9.8:2, the Parties must en sure that these measures do not constitute unnecessary 
barriers to trade, including by ensuring that the m easures are based on objective and transparent 
criteria, not more burdensome than necessary to ensu re the quality of the service, and, in the case of 
licensing procedures, not in themselves a restriction on the supply of a service. 
150. The Parties must also ensure that measures of general application affecting trade in services 
relating to authorizations, licensing or qualificati on of services suppliers of the other Party are 
administered in a reasonable, objective and impartial manner.  The article also requires that measures relating to qualification requirements are made publicly  available.  When a regime of authorisation is 
required and when procedures to verify the compet ence of professionals is in place, transparent and 
efficient procedures are to be ensured.  Moreover, temporary or limited licence regimes are regulated 
and access to examinations, when required, needs to be ensured in a reasonable manner.  Although the 
disciplines do not bind non-governmental bodies, the Parties encourage them to comply with the requirements in Art. 9.8. 
151. The Parties will review any development relate d to Art. VI:4 of the GATS negotiations, and 
would, as appropriate, incorporate these results into the Agreement. 
2. Recognition 
152. A Party may recognise the education or experience obtained, requirements met, or licences or 
certifications granted in a particular country.  In  such a case, a Party is not bound to accord this 
treatment to the other Party, but shall provide the other Party adequate opportunity to demonstrate that 
the education or experience obtained, requirements met, or licences or certifications granted in the 
other Party should also be recognized (Art. 9.9).  
                                                     
 
55 A specific provision on new financial services provides that if a financial service is supplied in the 
territory of one Party but not the other, and the second Party would permit its own financial institutions to supply that service without additional legislative action, then it must allow financial institution of the first Party 
to provide that service in its territory. WT/REG263/1 
Page 44  
 
  153. As to recognition of qualifications or registrati on/licensing of professionals in the other Party, 
Annex 9-A on professional services, incorporated into  Chapter 9, is designed to support any initiative 
by professional bodies seeking to facilitate such rec ognition.  To that end, the Parties agreed to 
establish contact points to consult and exchange  information on professional qualifications and 
registration / licensing. 
G. S
AFEGUARD ACTIONS ON SERVICES AND INVESTMENT  
154. The Agreement does not contain provisions permitting the use of emergency safeguard 
measures.  Nevertheless, Art. 22.4 contains disciplines on the use of restrictions to safeguard the Balance-of-Payments and external fi nancial difficulties, or threat thereof.  If the Parties adopt or 
maintain restrictive measures with regard to trad e in goods and services and to payments and capital 
movements, including those related to direct inv estment, they must ensure that the measures are 
non-discriminatory and of limited duration and not go beyond what is necessary to remedy the Balance-of-Payments and external financial situa tion.  The measures taken shall be in accordance 
with WTO rules and disciplines in that regard as well as with the Articles of Agreement of the 
International Monetary Fund, as applicable. 
V. GENERAL PROVISIONS OF THE AGREEMENT  
A. T
RANSPARENCY  
155. Chapter 19 covers Transparency and includes ob ligations on the Parties to ensure that all 
laws, regulations, procedures and administrative ruli ngs regarding matters c overed by the Agreement 
are made publicly available and to maintain the appr opriate legal systems to ensure the prompt review 
of any measures concerning the Agreement. 
156. Contact points, identified in Annex 19-A, are established to facilitate communications 
between the Parties on any matter covered by the Agreement. 
157. A review mechanism is established by each Party through judicial, quasi-judicial or 
administrative tribunals or procedures for all admi nistrative actions taken re garding matters covered 
by the Agreement. 
B. EXCEPTIONS  
158. A general exception for goods and services56 is maintained by incorporating into the 
Agreement mutatis mutandis  Art. XX of the GATT 1994 for goods57 and Articles XIV of the GATS 
for services-related issues (Art. 22.1).58  The coverage of environmental measures necessary to protect 
human, animal, or plant life or health by GATT Art.  XX(b) and the coverage of measures relating to 
the conservation of living and nonliving exhaustib le natural resources by GATT Art. XX(g) is 
                                                      
56 In relation with disciplines on National Treatment  and Market Access for Goods, Rules of Origin, 
Customs Administration, Sanitary and Phytosanitary Measures, and Technical Regulations, Standards and 
Conformity Assessment Procedures (Chapters 3 to 7), and in relation with disciplines on Cross-Border Trade in 
Services, Telecommunications and Electronic Commerce (C hapters 9, 11 and 16). As the Agreement does not 
contain substantive disciplines on trad e remedies, it can also be assumed that  the general exception contained in 
the GATT 1994 and in the GATS also apply to trade remedies (Chapter 8). In Art. 15.23 of the Agreement, an 
exception, borrowing language from the general exception provisions in the GATT and GATS, is applicable to disciplines on government procurement (Chapter 15). 
57 For the purposes of trade in goods, rules of origin, customs procedures, investment (other than 
"Protection from Strife") and energy and mineral resources. 
58 For the purposes of investment (other than “Prot ection from Strife”), trade in services and movement 
of natural persons.  WT/REG263/1 
 Page 45 
 
 
  highlighted in Art. 22.1.  Similarly, the covera ge of environmental measures necessary to protect 
human, animal, or plant life or health by GATS Art. XIV(b) is also highlighted in Art. 22.1. 
159. The language on security exceptions for goods, ser vices, and intellectual property rights is 
borrowed from Art. XXI of the GATT 1994, Art. XIV bis of the GATS, and Art. 73 of the TRIPS 
Agreement and contained in Art. 22.2 applicab le to all aspects covered by the Agreement. 
C. TAXATION  
160. Although, as a principle, the Agreement does not apply to taxation measures, Art. 22.3 
specifies the disciplines that apply to taxation meas ures with the relevant conditions.  The Agreement 
does not affect the rights and obligations of either Party under any tax treaty.  In the event of inconsistency between the Agreement and any such treaty, that treaty prevails to the extent of the 
inconsistency. 
D. A
CCESSION AND TERMINATION  
161. The Agreement is open to accession by any coun try, on terms to be agreed between the 
Parties (Art. 23.1).  It does not contain any termination clause. 
E. GOVERNMENT PROCUREMENT  
162. Chapter 15 of the Agreement defines govern ment procurement as the purchase of goods, 
services, including construction services, or both: 
(i) by any contractual means, including pu rchase and rental or lease, with or 
without an option to buy, build-opera te-transfer contracts and public works 
concessions contracts; 
(ii) for which the value, as estimated in accordance with Art. 15.5 equals or 
exceeds the relevant threshold specified in Annex 15-A; 
(iii) that is conducted by a procuring entity; 
(iv) is not excluded from coverage by this Agreement;  and  
(v) subject to the conditions specified in Annex 15-A.   
163. The provisions contained in Chapter 15 ensure  that the suppliers of goods and services of 
each Party have non-discriminatory access to the gove rnment procurement market of the other.  
National Treatment is granted among the Parties fo r the provision of goods and services above the 
defined thresholds.  Art. 15.23 provides for excep tions to the rules applicable to government 
procurement, similar to the WTO rules applicable in the context of General Exceptions and Security 
Exceptions.  
164.  Chapter 15 contains rules for procedures governing tendering, which can be open, selective 
(Art. 15.14 paragraph 2), or limited (subject to provisions contained in Art. 15.15).   
165. The Chapter covers procurement above agreed  threshold values by central, sub-central 
government entities, and other covered entities, whic h are listed in Annex 15- A, subdivided into 
8 Sections.  The Chapter underlines the necessity to ensure transparent and non-discriminatory 
tendering procedures, which should not create obstacl es to trade between the Parties.  Different 
thresholds are determined for Central government  entities, for Sub-central government entities, and WT/REG263/1 
Page 46  
 
  for Other covered entities (Table V.1) .  These thr esholds are to be adjusted in accordance with 
Section 8 of Annex 15-A.  Adjustment s will take place at two-year intervals, with a view to align with 
the adjusted thresholds for the equivalent categor ies of procurement listed in the Australia-United 
States FTA, and in the Chile-United States FTA respec tively.  Adjusted thresholds values are to be 
adopted by the Joint FTA Committee. 
Table V.1 
Threshold values for government procurement of goods, services and construction services 
Threshold Value 
Australia Chile  Classification 
Goods & services Construction services Goods & services Construction services 
Central Government Entities A$ 87,000 A$  9,570,000 Ch$35,911,00 0 Ch$3,940,806,000 
Sub-Central Government Entities A$ 679,000 A$ 9,570,000 Ch$279,557, 000 Ch$3,940,806,000 
Other Covered Entities A$ 436,000 A$ 9,570,000 Ch$179,558,0 00 Ch$3,940,806,000 
Source: The Free Trade Agreement between Australia and Chile.  
166. Modifications to the scheduled entities, to be  adopted by the Joint FTA Committee, may be 
made by either Party provided notif ication is given and compensatory adjustment granted to maintain 
a level of coverage comparable to that existing prio r to the modifications.  Since the entry into force 
of the Agreement no modifications were made to the entity lists. However, the thresholds were 
adjusted in accordance with secti on 8 of Annex 15-A, with effect from 1 January 2010. The adjusted 
thresholds for Australia, are now as indicated in Table V.2. 
Table V.2 
Adjusted threshold values for government procuremen t of goods, services and construction services 
Threshold Value 
Australia Chile  Classification 
Goods & services Construction services Goods & services Construction services 
Central Government Entities A$ 85,000 A$ 9,514,000 .. .. 
Sub-Central Government En tities A$ 675,000 A$ 9,514,000 .. .. 
Other Covered Entities A$ 427,000 A$ 9,514,000 .. .. 
Source: Information provided by Australia.  
167. A consultation process is foreseen, notably thr ough the contact points established under the 
transparency provisions of the Agreement (Chapter 19).  Further negotiations may also take place, on 
the request of either Party, with  a view to extending the coverage under this Chapter on a reciprocal 
basis (Art. 15.25).  Such negotiations would take pl ace in particular if a Party provides, through an 
international agreement entered into after entry into  force of the Agreement (the FTA), access to its 
procurement market for suppliers of a non-Pa rty beyond what it provides under the Agreement 
(the FTA) to supplies of the other Party. 
168. Australia and Chile are observers, but not Par ties, to the Plurilateral WTO Agreement on 
Government Procurement. 
F. INTELLECTUAL PROPERTY RIGHTS  
169. Chapter 17 covers intellectual property (IP) wh ich reaffirms the Parties existing rights and 
obligations under the WTO Agreement on Trade Re lated Aspects of Intellectual Property Rights 
(TRIPS) (Art. 17.3).  In the Agreement, "intellectua l property" refers to all categories of intellectual 
property that are the subject of Sections 1 to 7 of Part II of the TRIPS Agreement.59  In certain cases, 
the Agreement also build on TRIPS disciplines in areas where Australia and/or Chile have a higher 
degree of protection.  
                                                      
59 Namely: copyright and related rights;  trade marks; geographical indications; industrial designs; 
patents;  layout designs (topographies) of integrated circuits; and protection of undisclosed information.  For the 
purposes of Chapter 17, intellectual property  also includes rights in plant varieties.  WT/REG263/1 
 Page 47 
 
 
  170. The Parties agreed to ratify by 1 January 2009, a number of international IP agreements, such 
as the Convention Relating to the Distribution of  Programme-Carrying Signals Transmitted by 
Satellite.60  (1974 – the Brussels Convention), the Budapest Treaty on the International recognition of 
the Deposit of Microorganisms for the Purposes of Patent Procedure61 (1980), and the International 
Convention for the Protection of New Plant Varieties62 (1991).  The Parties also agreed to take 
reasonable steps to ratify a number of other in ternational IP agreements to, such as the Protocol 
Relating to the Madrid Agreement Concerni ng the International Registration of Marks63 (1898), the 
Patent Cooperation Treaty64 (1970), and the Patent Law Treaty65 (2000). 
171. Chile and Australia have also agreed to accord national treatment in respect of all intellectual 
property rights covered by the Chapter.  However, an exception is foreseen in relation to a Party's 
judicial and administrative procedures provided such derogation would no t constitute a disguised 
restriction on trade.  Moreover, the national treat ment principle does not apply to procedures provided 
in multilateral agreements concluded under the ausp ices of WIPO in relation to the acquisition or 
maintenance of intellectual property rights (IPRs).  
172. The Chapter contains a number of specific obligations on protection of trade marks – also 
covering geographical indications - country names, patents, domain names, copyright and related 
rights, encrypted program-carrying satellite signals , geographical indications as well as detailed 
enforcement provisions (Art. 17.34-40).  Some di sciplines in the Agreement go further than the 
TRIPS Agreement, for example in relation to  the term of protection for IPR holders.66  Retroactivity is 
not applicable to holders of IPRs. 
173. In relations to the protection of geographical indications (GIs), Austra lia and Chile exchanged 
a Side Letter on Wine, constituting an integral part of the Agreement.  Through this letter, the Parties 
recognise that Chilean GIs for wi nes are established by Decree 464 of the Chilean Ministry of 
Agriculture of December 14, 1994 and its amendmen ts and by the Law 18.455.  Moreover, Chapter 3 
(on national treatment and market access for goods) contains disciplines on the treatment of certain 
spirits, in particular of Chilean Pisco.  
G. ELECTRONIC COMMERCE  
174. Chapter 16 of the Agreement covers Electroni c Commerce and maintains zero customs duties 
on electronic transmissions between Australia and Chile (Art. 16.4).  The Chapter also contains commitments to adopt or maintain domestic measures regulating legal frameworks governing 
electronic commerce that minimise the regulator y burden; support industry-led development; and 
provide protection for consumers that is at least e quivalent to that provided for consumers of other 
forms of commerce.  The Chapter promotes the use of and trust in cross-border e-commerce, 
including through electronic authentication and pe rsonal data protection, and paperless trading, 
committing each Party to endeavour to accept electr onic versions of trade administration documents 
as the legal equivalent of paper documents. Consultations between the Parties are foreseen to address 
matters arising under Chapter 16. 
                                                     
 
60 Australia is Party since 1990;  ( Source :  WIPO database). 
61 Australia is a Party since 1987;  ( Source :  WIPO database). 
62 Australia is a Party since 1989;  Chile is a Party since 1995 ( Source :  WIPO database). 
63 Australia is a Party since 2001;  ( Source :  WIPO database). 
64 Australia is a Party since 1980;  Chile is a Party since 2009 ( Source : WIPO database). 
65 Australia is a Party since 2009;  ( Source :  WIPO database). 
66 As examples, each Party shall provide that initial re gistration of a trade mark shall be for a term of 
"no less than 10 years" (Art. 17.15) instead of no less than 7 years  in the TRIPS Agreement;  each Party shall 
provide that the term of protection shall be "no less than  the life of the author and 70 years after the author's 
death" (Art. 17.27a) instead of no less that the life of the author and 50 years after the author's death  in the 
context of the TRIPS Agreement. WT/REG263/1 
Page 48  
 
  H. D
ISPUTE SETTLEMENT  
175. Chapter 21 sets out procedures on the settlement of disputes between the Parties relating to 
the implementation and/or application of the Ag reement.  Disciplines on SPS measures contained in 
Chapter 6, technical regulations (Art. 7.7) and co mpetition policy (Art. 14.9) are not subject to the 
dispute settlement mechanism under the Agreement. 
176. The Parties have the choice of dispute settleme nt procedures for matters arising under both 
the Agreement and another FTA to which both Parti es are party or the WTO.  Once the complaining 
Party has chosen the forum to settle the dispute, that forum shall be used to the exclusion of the others 
(exclusive forum clause) (Art. 21.2).  Nothing in th e Agreement shall be construed to prevent a Party 
from taking action authorised by the Dispute Settlement Body of the WTO (Art. 22.1.3).   
177. Under Chapter 21, the Parties firstly seek to resolve disputes through consultations which are 
to be requested in writing (Art.21.3).  In the event that consultations between the Parties fail to settle 
the dispute within 40 days after the date of receipt of the request for consultations (20 days in the case 
of urgency – if the dispute applies to treatment of perishable goods for instance), the complaining 
Party may refer the matter to the Joint FTA Comm ittee (Art. 21.4).  The Joint Committee may make 
recommendations, have recourse to good offices, c onciliation, mediation or such other dispute 
resolution procedures, or call on technical advisers or  create such working groups or experts groups as 
it deems necessary (Art. 21.4 paragraph 2).  
178. The complaining Party may also request the estab lishment of an Arbitral Panel, regardless of 
whether the matter has been referred to the Jo int Committee or not.  The Agreement contains 
provisions on the Establishment of Arbitral Panels (A rt. 21.5), Terms of Reference of Arbitral Panels 
(Art. 21.6), Composition of Arbitral Panels (Art. 21. 7), Proceedings of Arbitral Panels (Art. 21.8), 
Suspension or Termination of Proceedings (Art. 21.9) , and Report of the Arbitral Panel (Art. 21.10). 
The Report of the arbitral panel is final and binding  on the Parties. It may, if applicable, contain 
recommendations.  The findings and determinations  of the Panel, as well as its recommendations 
cannot add to or diminish the rights and obligations of the Parties under the Agreement. 
179. Implementation of the Arbitral Panel Report must take place in a reasonable period.  Possible 
further disputes about the length of the reasonabl e period for implementation of the Report, or 
non-implementation are to follow a determined proce dure (Art. 21.11 and 21.12).  Moreover, in case 
of non-implementation, disciplines are provided to ensure that compensation and/or suspension of 
concessions or of other obligations can take place within a regulated framework (Art. 21.11). 
180. The following Table provides a synopsis  of the dispute settlement process. 
 
 
  
 
  
  WT/REG263/1 
 Page 49 
 
 
  Chart V.1 
Agreement specific Dispute Settlement Mechanism  
 
 
Source : WTO Secretariat based on Chapter 21 of the Agreement. 
 
 Request for  
Consultations  
(Art. 21.3) 
Consultations 
(Art. 21.3) 
40 days  
(20 days in urgent cases) 
Referral to Joint FTA  
Committee (Art 21.4) 
30 days  
Request for establishment of 
Arbitral Tribunal 
(Art. 21.5) 
180 days  
(60 days in urgent cases) 
Draft Report to the Parties 
(Art. 21.4) 
30 days 
Final Report issued to the Parties 
(Art. 21.10) 
- Final + binding on Parties  Recommendations Adjustment by the Party 
complained against or 
Complaint dropped 
Implementation by the Party  
complained against  
Arbitral Tribunal if failure to agree on 
reasonable period of time or elimination 
of non-conformity  
Negotiating in case of non -implementation 
(Art. 21.12) 
20 days  
No agreement on satisfactory compensation  
Suspension of benefits 
Disagreement about requirements of 
suspension of concessions  or benefits  
Arbitral Panel  
60 days  
Report issued – Final binding on the Parties WT/REG263/1 
Page 50  
 
  181. Chapter 10 sets up a Dispute Settlement mechan ism to address disputes between a Party and 
an investor of the other Party involving a covered investment made in the territory of a Party in 
accordance with its laws, regulations and invest ment policies (Chapter 10 – Section B).  The 
procedure allows for a period of consultation to resolve disputes following which the claim can be 
submitted for arbitration under the ICSID Conventi on provided that both Parties are party to the 
Convention, under the ICSID Additional Facility Rules pr ovided that either of the Parties is a party to 
the ICSID Convention, or under the UNCITRAL Arb itration Rules.  Annexes 10-A to D, as well as 
Annex 10-F are to be read in c onnection with Sections A and B. 
I. I
NSTITUTIONAL FRAMEWORK  
182. Chapter 20 of the Agreement covers in stitutional arrangements and establishes a Joint FTA 
Committee , to be co-chaired at the level of officials, to review the operation of the Agreement and to 
supervise the work of the subsidiary committees, working groups and contact  points established under 
the Agreement. 
183. In addition, a number of other chapters of th e Agreement contain institutional provisions.  
Art. 3.15 establishes a Committee on Trade in Goods  to consider any matter arising under Chapters 3 
(National Treatment and Market Access for Goods),  4 (Rules of Origin), or Chapter 5 (Customs 
Administration);  Art. 7.10 establishes a Committee on Technical Barriers67 in order to facilitate 
implementation of Chapter 7;  Art. 12.16 establishes a Financial Services Committee  to discuss any 
matter arising under the Agreement that affects fina ncial services;  Art. 18.4 (Cooperation) establishes 
a Cooperation Committee68 to, inter alia , discuss cooperative activities which might be undertaken 
under Chapter 18, and review where appropriate th e implementation of cooperative activities.  In 
addition, the  Joint FTA Committee may create other Committees, Working Groups , or Experts 
Groups  as appropriate.  
184. In addition to the Committees, enquiry and contact points are established under various 
provisions including under Art. 5.3 (Customs Administration) which foresees that the Parties will designate one or more Inquiry Points  to address inquiries from interested persons concerning customs 
matters;  Art. 6.5 (SPS) which foresees the identification of an overall Contact Point  relating to 
SPS measures
69;  Art. 7.9 foresees that Parties make use of the Enquiry Points  established under 
Art. 10 of the (WTO) TBT Agreement, in the contex t of notifications and publication under Art. 2.9 
or 5.6 of the (WTO) TBT Agreement;  Art. 17.41 (Cooperation in Intellectual Property) foresees that 
Parties notify relevant Contact Points  in order to facilitate cooperati on in IP-related matters;  and 
Art. 19.2 (Contact Points in the c ontext of Transparency) foresees that Contact Points70 will facilitate 
communications between the Parties on any matter covered by the Agreement. 
 
   
 
                                                     
 
67 National "Coordinators" for the TBT Committee will be: For Australia: Department of Innovation, 
Industry, Science and Research; and for Chile: General Directorate of Intern ational Economic Affairs, Ministry 
of Foreign Affairs. 
68 National "Coordinators" for the Cooperation Committee will be: for Australia: Department of 
Foreign Affairs and Trade; and for Chile Ministry of  Foreign Affairs through the General Directorate for 
International Economic Affairs and the Chilean Agency for International cooperation. 
69 For Australia: Department of Agriculture, Fisherie s and Forestry; For Chile: General Directorate of 
international Economic Affairs, Ministry of Foreign Affairs. 
70 For Australia: Department of Foreign Affairs and Trade. For Chile: Asia Pacific Department of the 
General Directorate of International Economic  Affairs, Ministry of Foreign Affairs.  WT/REG263/1 
 Page 51 
 
 
  185. The following Chart summariz es the Working Bodies establis hed by the Agreement.  
Chart V.2: 
Institutional structure established by the Agreement 
 
 
 
Source : WTO Secretariat, based on Chapter 20 of the Agreement. 
 
 
186. None of the above-mentioned committees has met (as at 10 February 2010) since the 
Agreement entered into force. The Joint FTA committee and the Cooperation Committee are due to 
have their first meetings in or shortly after the firs t year of entry into force of the Agreement (Articles 
18.4 and 20.2).  
J. OTHER  
1. Competition Policy 
187. Chapter 14 of the Agreement covers Competition Policy.  It affirms the Parties' commitment 
to proscribing anti-competitive activities, with a view  to preventing distortions or restrictions of 
competition which may affect trade in goods and services between them.  The Chapter provides for 
each Party to maintain or adopt measures consistent with their domestic laws and to take appropriate 
actions to impose disciplines on state enterprises, enterprises with special or exclusive rights, 
including designated monopolies; and allows fo r exchange of information, transparency, 
confidentiality, consultation and cooperation on enforcement activity.  The mutual provision of 
technical assistance is also encouraged.  
188. The Chapter is not subject to the Agre ement's dispute settlement provisions. 
 
Joint FTA 
Committee  
(Art. 20.1)  
Committee on 
Trade in Goods 
(Art. 3.15)  
Committee on 
TBT (Art. 7.10)  
Financial 
Services 
Committee  
(Art. 12.16)  
Cooperation 
Committee (Art. 
18.4)  
Arbitral Panel*    
(Art. 21.5-9)  
Working 
Group(s )* 
(Art. 20.1)  
WTO Enquiry points 
for TBT matters  
(Art. 7.9) (WTO TBT: Art. 10)  
Inquiry points   
for Customs matters  (Art. 5.3)  
Contact points   
for SPS matters  (Art. 6.5)  
Contact points  
for IP matters  (Art. 17.41)  
Contact points   
for Transparency purposes  (Art. 
19.2)  On all matters related 
to the Agreement  (*) as required  WT/REG263/1 
Page 52  
 
  2. Cooperation 
189. Chapter 18 establishes a framework for coopera tion aimed at strengthening and building on 
existing cooperative relationships , creating new opportunities for trade and investment, promoting 
competitiveness, innovation and research and devel opment and supporting the role of the private 
sector to encourage economic growth and development.   The provisions do not commit either Party to 
contributing clearly identified resources, although they shall provide, within the limits of their 
capacities and through their own cha nnels, adequate resources to s upport cooperative activities, as 
required. 
190. The Chapter includes an indicative list of areas where cooperation might be of mutual benefit 
to the Parties.  The list includ es science, agriculture - including wine, food production and processing, 
mining, energy, environment, small and medium enterprises, tourism, education, labour, human 
capital development and cultural collaboration.  C ooperation in other areas is not excluded.  The 
Chapter also mentions labour, environment and innova tion in the context of international agreements, 
mutual interests and strengthening of the trad ing relationship.  A Cooperation Committee is 
established to implement the Chapter. 
K. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
191. The following Table lists all other regional trad e agreements (RTAs) notified and not notified 
to the GATT/WTO and in force to which Australia and Chile are party.   WT/REG263/1 
 Page 53 
 
 
  Table V.3 
Australia and Chile:  Participation in other RTAs (n otified and non-notified in force), as of March 2010  
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
AUSTRALIA  
United States 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Thailand 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 28.07.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
New Zealand 01.01.89 Services 1995 GATS Art. V 
New Zealand 01.01.83 Goods 1983 GATT Art. XXIV 
SPARTECA 01.01.81 Goods 1981 Enabling Clause 
Papua New Guinea (PATCRA) 01.02.77 Goods 1976 GATT Art. XXIV 
ASEAN-Australia-New Zealand 01.01.10 Goods Not notified 
CHILE a 
Colombia 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Panama 07.03.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
India 17.08.07 Goods 2009 Enabling Clause 
China 01.10.06 Goods 2007 GATT Art. XXIV 
Brunei, New Zealand, Singapore 
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Communities 01.03.05 Services 2005 GATS Art. V 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
European Communities 01.02.03 Goods 2004 GATT Art. XXIV 
El Salvador (Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Central America) 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Peru 01.03.09 Goods & Services Not notified 
Honduras (Central America) 28.08.08 Goods & Services Not notified 
Cuba 28.08.08 Goods Not notified 
MERCOSUR 01.10.96 Goods Not notified 
Ecuador 01.01.95 Goods Not notified 
Bolivia 07.07.93 Goods Not notified 
Venezuela 01.07.93 Goods Not notified 
a Chile has concluded six RTAs under the LAIA framework (with MERCOSUR, Bolivia, Colombia, Ecuador, Peru, and 
Venezuela).  These RTAs have not been notified, but  are included in periodic reports submitted by LAIA. 
Source: WTO Secretariat.  
 
SPARTECA: South Pacific Regional Trad e and Economic Cooperation Agreement. 
EFTA:  European Free Trade Association. 
LAIA:  Latin American Integration Association. 
GSTP:  Global System of Trade Preferences. PTN:  Protocol relating to Trade Negotiations among de veloping countries. 
 
 WT/REG263/1 
Page 54  
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement
 
  
1. A comparison between preferential tariff rates as part of the scheduled programme of 
elimination of tariffs applied to the Parties' mutu al imports and the MFN rates applied by Australia 
and Chile is shown in Table AI.1 (Australia) and AI.3 (Chile) belo w, by total products, agricultural 
products and non-agricultural products. 
Table AI.1 
Australia: Indicators of MFN tariff rates a nd preferential rates for imports from Chile 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 3.6 6.7 46.2 1.4 5.0 71.2 3.9 6.8 42.1 
Chile 2009 1.2 12.6 90.8 0.0 4.3 99.7 1.3 12.6 89.4 
 2010 1.2 12.6 90.8 0.0 3.6 99.7 1.3 12.6 89.4 
 2011 1.2 12.6 90.8 0.0 2.9 99.7 1.3 12.6 89.4 
 2012 1.2 12.6 90.8 0.0 2.1 99.7 1.3 12.6 89.4 
 2013 1.2 12.6 90.8 0.0 1.4 99.7 1.3 12.6 89.4 
 2014 1.2 12.6 90.8 0.0 0.7 99.7 1.3 12.6 89.4 
 2015 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition. 
Note: For the calculation of MFN averages, tariff lines with specific rates are excluded and the ad valorem  part of alternate rates are 
 included. 
 
Source : WTO Secretariat estimates based on data provided by Australia. 
 
2. Australia's average applied MFN rate in 2009 w as 3.6%.  MFN tariffs on agricultural products 
are lower than for non-agricultural products with the average on agricultural products at 1.4% against 
3.9% for non-agricultural products.  Duty-free tariff li nes account for 46.2% of the tariff. As a result 
of the Agreement, Chile's exporters enjoy an absolu te margin of preference of 1.4% for agricultural 
goods vis-à-vis  the prevailing average MFN tariff in 2009, and 2.6% for non-agricultural products.  
Overall, Chilean exporters in 2009 had an ab solute margin of preference of 2.4% vis-à-vis  the 
prevailing average applied MFN tariff.  The share of  duty free lines applicable to imports from Chile 
also rose, at the beginning of 2009, from 46.2% to 90.8%.  Following six years of implementation, 100% of all tariff lines are due to become duty-free for Chile's exports to Australia. 
3. One of the objectives of the Agreement is  to increase access opportunities for Chilean 
merchandise to the Australian market. Table AI.2 gi ves an indication of the additional market access 
resulting from the entry into force of the Agreement for Chile's top 25 global exports.  Before the 
entry into force of the Agreement 71.6% of Chile's global exports, covered by 37 tariff lines already had duty free access to the Australian market.  As a result of the Agreement coming into force, an 
additional 3.5% of its global exports (seven tariff lines) ga ined duty free access to the Australian 
market;  in 2015 when the Agreement is fully impl emented, an additional 1.3% of Chile's global 
exports will become duty free in Australia. 
 
 
 
  
 
   WT/REG263/1 
 Page 55 
 
 
  Table AI.2 – Australia: Market access opportunities under the agreement for Chile's top 25 exports to the world 
Access Conditions to Australia's import markets  Chile's top export products in 2006-2008  MFN (2009)  Duty-free for Chile in  
No. of tariff lines  
HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN 
applied 
rate (%)  Duty-free Dutiable 2009 2015 
740311 -- Cathodes and sections of cathodes 29.4 0.0 1    
260300 Copper ores and concentrates. 19.8 0.0 1    
740200 Unrefined copper;  copper anodes for 
electrolytic refining. 4.3 0.0 1    
261310 - Roasted 2.7 0.0 1    
470321 -- Coniferous 1.7 0.0 1    
220421 -- In containers holding 2 l or less 1.6 5.0  4 4  
261390 - Other 1.4 0.0 1    
080610 - Fresh 1.3 5.0  1  1 
470329 -- Non-coniferous 1.3 0.0 1    
740319 -- Other 1.3 0.0 1    
440710 - Coniferous 1.2 3.3 1 2 2  
720270 - Ferro-molybdenum 1.1 0.0 1    
710812 -- Other unwrought forms 1.0 0.0 1    
290511 -- Methanol (methyl alcohol) 0.9 0.0 1    
271011 -- Light oils and preparations 0.9 0.0 5    
230120 - Flours, meals and pellets, of fish or 
of crustaceans, molluscs or other aquatic invertebrates 0.8 0.0 1    
740400 Copper waste and scrap. 0.8 0.0 1    
080810 - Apples 0.8 0.0 1    
740811 -- Of which the maximum cross-
sectional dimension exceeds 6 mm 0.7 5.0  1 1  
030429 -- Other 0.7 0.0 1    
030419 -- Other 0.7 0.0 1    
710691 -- Unwrought 0.5 0.0 1    
271019 -- Other 0.5 0.0 12    
280120 - Iodine 0.5 0.0 1    
020329 -- Other 0.5 0.0 1    
Total of above 76.4  37 8 7 1 
Source : WTO estimates based on data provided by the Australia and UNSD, Comtrade data. 
 
4. Chile's average applied MFN rate in 2009 w as 6%. Tariffs on agricultural products are 
comparable to those for non-agricultural products, as Chile applies a general rate of 6% (with a 
limited number of exceptions) with the average applie d MFN tariff on agricultural products at 6.1% 
against 6% for non-agricultural products.  Duty-free tariff lines account for 0.5% of all tariff lines. As 
a result of the Agreement, Australian exporters enjoy an absolute margin of preference of 5.7% for 
agricultural goods vis-à-vis  the prevailing average MFN tariff in 2009, and 5.2% for non-agricultural 
products.  Overall, Australian exporters enjoy an absolute margin of preference of 5.3% vis-à-vis  the 
prevailing average applied MFN tariff.  The shar e of duty free lines applicable to imports from 
Australia also rose at the beginning of 2009 from 0.5% to 87.4%.  Following six years of implementation, 99.9% of all tariff lines are due to  become duty-free for Australian exports to Chile, 
the exception being the specific rate component of six lines relating to sugar which will continue to 
apply on an MFN basis. 
 
    
 
    WT/REG263/1 
Page 56  
 
  Table AI.3 
Chile:  Indicators of MFN tariff rates and preferential rates for imports from Australia 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 6.0 6.0 0.5 6.1 6.1 0.0 6.0 6.0 0.5 
Australia 2009 0.7 5.8 87.4 0.4 5.5 92.5 0.8 5.8 86.6 
 2010 0.7 5.6 87.4 0.3 4.6 92.5 0.8 5.7 86.6 
 2011 0.7 5.3 87.4 0.3 3.7 92.5 0.7 5.5 86.6 
 2012 0.6 5.2 87.4 0.2 3.0 92.5 0.7 5.3 86.6 
 2013 0.6 4.9 87.4 0.1 1.9 92.5 0.7 5.2 86.6 
 2014 0.6 4.7 87.4 0.1 1.0 92.5 0.7 5.0 86.6 
 2015 0.0 0.0 99.9 0.0 0.0 99.4 0.0 0.0 100.0 
a WTO Definition. 
 
Source : WTO Secretariat estimates based on data provided by Chile. 
 
5. One of the objectives of the Agreement is to increase access opport unities for Australian 
merchandise to the Chilean Market.  Table AI.4 gives an indication of additional market access 
resulting from the entry into force of the Agreement fo r Australia's top 25 global exports.  Before the 
entry into force of the Agreement, none of Aust ralia's top 25 exports which represent 66.7% of its 
global exports and correspond to 63 tariff lines, had duty free access to the Chilean market.  At entry 
into force of the Agreement, 61 ta riff lines became duty free.  The additional two lines, which are to 
become duty free in 2015 represent 2.7% of Australia's global exports.  
Table AI.4 – Chile:  Market access opportunities under the agreement for Au stralia's top 25 exports to the world 
Access Conditions to Chile's import markets  
Australia's top export products in 2006-2008  MFN (2009)  Duty-free for 
Australia in  
HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) Number of dutiable 
tariff lines  2009 2015 
270112 -- Bituminous coal 16.4 6.0 3 3  
260111 -- Non-agglomerated 11.0 6.0 3 3  
710813 -- Other semi-manufactured forms 6.3 6.0 1 1  
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.5 6.0 2 2  
271111 -- Natural gas 3.5 6.0 1 1  
281820 - Aluminium oxide, other than artificial 
corundum 3.2 6.0 1 1  
260300 Copper ores and concentrates. 2.2 6.0 1 1  
760110 - Aluminium, not alloyed 1.9 6.0 1 1  
271011 -- Light oils and preparations 1.7 6.0 11 11  
300490 - Other 1.7 6.0 2 2  
100190 - Other 1.6 31.5 1  1 
740311 -- Cathodes and sections  of cathodes 1.4 6.0 1 1  
020230 - Boneless 1.3 6.0 1 1  
220421 -- In containers holding 2 l or less 1.3 6.0 13 13  
020130 - Boneless 1.1 6.0 1 1  
510111 -- Shorn wool 1.1 6.0 1  1 
260800 Zinc ores and concentrates. 1.1 6.0 1 1  
760120 - Aluminium alloys 1.0 6.0 1 1  
870324 -- Of a cylinder capacity exceeding 3,000 
cc 0.9 6.0 6 6  
870323 -- Of a cylinder capacity exceeding 1,500 
cc but not exceeding 3,000 cc 0.8 6.0 6 6  
260400 Nickel ores and concentrates. 0.6 6.0 1 1  
260200 Manganese ores and concentrates, 
including ferruginous manganese ores and 
concentrates with a manganese content of 20% or more, calculated on the dry weight. 0.6 6.0 1 1  
Table AI.4 (Cont'd) 
  WT/REG263/1 
 Page 57 
 
 
  Access Conditions to Chile's import markets  
Australia's top export products in 2006-2008  MFN (2009)  Duty-free for 
Australia in  
HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) Number of dutiable 
tariff lines  2009 2015 
750511 -- Of nickel, not alloyed 0.5 6.0 1 1  
100300 Barley. 0.5 6.0 1 1  
790111 -- Containing by weight 99.99% or more of 
zinc 0.5 6.0 1 1  
Total of above 66.7 63 61 2 
Note: For the calculation of MFN averages, tariff lines with specific rates are excluded and the ad valorem  part of alternate rates are 
 included. 
 
Source : WTO estimates based on data provided by  the Chile and UNSD, Comtrade data. 
 
__________