WORLD TRADE  
ORGANIZATION   
WT/REG230/3 
19 August 2011 
 (11-4141) 
Committee on Regional Trade Agreements  
  
 
 
 
 
FACTUAL PRESENTATION 
 
Economic Integration Agreement  
between  
China and Chile 
(Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Economic Integration Agreement 
between China 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 rules and proce dures 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 Mr. Pierre Latrille (tel: +41 22 739 52 66).  WT/REG230/3 
 Page iii 
 
 
   
 
TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 6  
A.  BACKGROUND INFORMATION  6  
III.  PROVISIONS ON TRADE IN SERVICES 7  
A.  SCOPE AND DEFINITIONS  7  
B.  DENIAL OF BENEFITS  7  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  7  
1.  Market access 7  
2.  National and MFN treatment 8  
3.  Commercial presence 8  
4.  Movement of natural persons 8  
D.  LIBERALIZATION COMMITMENTS  9  
1.  China 9  
(a)  Horizontal commitments 9  
(b)  Sector-specific commitments 9  
2.  Chile 12  
(a)  Horizontal co mmitments 12  
(b)  Sector-specific commitments 13  
E.  INVESTMENT  15  
F.  REGULATORY PROVISIONS  15  
1.  Domestic regulation 15  
2.  Recognition 16  
3.  Subsidies 16  
4.  Safeguards 16  
IV.  GENERAL PROVISIONS OF THE AGREEMENT 16  
A.  TRANSPARENCY  16  
B.  PAYMENTS AND TRANSFERS  16  
C.  EXCEPTIONS  16  
D.  ACCESSION AND TERMINATION  16  
E.  INSTITUTIONAL FRAMEWORK  17  
F.  DISPUTE SETTLEMENT  17  
G.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  17  
  WT/REG230/3 
 Page 1 
 
 
   
 
 
Key Facts 
 
Parties to the Agreement:  China and Chile 
 
Date of Signature (services):  13 April 2008 
 Date of Entry into Force (services): 1 August 2010  Date of Notification (services):  18 November 2010 
 
 
 
 
I. TRADE ENVIRONMENT 
1. The Agreement on Trade in Services of the Free Trade Agreement between the People's 
Republic of China and the Republic of Chile (hereafter "the Agreement") is Chile's 14th and China's 
eighth regional trade agreement (RTA) notified to  the WTO which includes services components.  
This Factual Presentation deals with the servi ces aspects of the Agreement.  The Free Trade 
Agreement (goods aspects) was considered in September 2008  by the Committee on Regional Trade 
Agreements.1   
2. In 2009, while China was the world's fifth and fourth largest exporter and importer 
respectively of commercial services amounting to 3.8%  and 4.9% respectively of exports and imports 
(US$128.6 billion and US$158.2 billion,  respectively), Chile ranked 54th and 53rd in exports and 
imports accounting for 0.25%  of exports and 0.29% of imports (US$8.4  billion and US$9.4  billion, 
respectively).2 
3. Chart I.1 shows the breakdown of China's comm ercial services trade with the world in 
2000-2009 during which time it has run a constant trade deficit.  The top three categories for both exports and imports were other business services,  transportation services and travel services.   
4. Chart I.2 shows the breakdown of global comme rcial services trade for Chile in 2000-2009.  
Travel services, other business services and trans portation services represent the largest categories in 
terms of both export and import of commercial services.   During this period Chile has run a constant 
deficit in trade in services. 
                                                      
1 For relevant documents on the goods aspects of the Agreement, the references are:  WT/REG230/1; 
WT/REG230/2;  and WT/REG230/M/1. 
2 WTO Statistics Database, Trade Profile (October 2010). WT/REG230/3 
Page 2  
 
050100150200
Export
Import
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 2009
Source: IMF, WTO Secretariat estimates based on national data.Chart I.1
China, total commercial se rvices trade, 2000-2009
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/REG230/3 
 Page 3 
 
 
  5. Bilateral commercial services trade between Ch ina and Chile for 2008 and 2009 as illustrated 
by Chart 1.3 exhibits a surplus in favour of Chile in the proportion of one to twelve, the main surpluses being registered in transpor t services and insurance services.   
0200400600800
Export Import Export Import
2008 2009
Note: no data on personal, cultural and recreational services.
Source: Chinese authorities.Chart I.3
China, bilateral commercial serv ices trade with Chile, 2008-2009
US$ million
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
 6. China's global investment position in 2000-2009 is depicted in Chart I.4.  While it remains 
one of the world's largest recipients of FDI, w ith total stock reaching US $473 billion in  2009, its 
outward investment has also been increasing with total FDI stock held abroad reaching 
US$229 billion in 2009.  In 2009 China ranked as the 10
th largest recipient of FDI (with a share of 
2.7% of world FDI), and 16th largest direct foreign investor (with a share of 1.2% of world FDI). WT/REG230/3 
Page 4  
 
050100150200250300350400450500
2000 20012002 20032004 20052006 20072008 2009stock flow050100150200250300350400450500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Chart I.4
China, inward and outward fo reign direct investment stock and flow with world, 
2000-2009
Source: UNCTADStat.Inward OutwardUS$ billion US$ billion
 
 
  7. Chile's global investment position for 2000-2009 is de picted in Chart I.5.  Inward stocks have 
been on average three times bigger than outwards stocks  in the last five years.  Stocks and flows, both 
inward and outward, were on the rise for the whol e period described except for inward flows in 2009 
that fell slightly.  In 2009 Chile ranked as the 29
th recipient of foreign direct investment (with of share 
of 0.7% of world FDI), and 37th direct foreign investor with a share of 1.2% of world FDI.  WT/REG230/3 
 Page 5 
 
 
  020406080100120140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 stock flow020406080100120140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Chart I.5
Chile, inward and outward foreign direct investment stock and flow with world, 
2000-2009
Inward Outward US$ billion US$ billion
Source: UNCTADStat. 
 
 8. Table I.6 shows Chile's investment positi on with China between 2006 and 2010.  These 
figures show a steep decline in the stock of Ch inese investment in Chile between 2007 and 2009, 
followed by a stabilization.  Inward flows show a similar tendency.  Chile's investment stocks in 
China rose during the period while flows declined between 2008 and 2010.
3 
                                                      
3 Comparable statistics from China on its outward fo reign direct investments with Chile for 2007-2009 
shows a similar tendency regarding flows (decline in 2007-2008, rise in 2008-2009) but a very different one 
regarding stocks (sharp decrease in 2007-2009 instead of a notable rise).  The data also display much smaller 
volumes of stocks and flows in the proportion of 1 to 3.  According to the Parties these discrepancies are due to 
differences in the collection of data. WT/REG230/3 
Page 6  
 
-20020406080100120140160
2006 2007 2008 2009 2010
stock flowChart I.6
Chile, inward and outward foreign direct investment stock and flow with China, 
2006-2010
-20020406080100120140160
2006 2007 2008 2009 2010
Note:  No data on fdi inflow in 2010 and FDI outflow in 2008. Figures on FDI outflow are negative which indicate an increase in  
foreign investment.  Inward flow in 2008 registered US$ -5,000 which indicates a decrease in investment.
Source: Chilean authorities.Inward Outward US$ million US$ million
 
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
9. The Free Trade Agreement (henceforth "Agree ment in goods") entered into force on 1 
October 2006, was notified to the WTO on 20 June 2007, and considered by the Committee on Regional Trade Agreements on 18-19 September 2008.  As a future work programme Article 120 of 
the Agreement in goods committed the Parties to negotiate liberalization of trade in services and 
investment following the conclusion of negotiations to liberalize trade in goods.  The Agreement on 
services, (henceforth "the Agreement") which entered into force on 1 August 2010, was notified to the 
WTO on 18 November 2010 under Article V:7(a) of the GATS (document S/C/N/577).  The text of 
the Agreement is available on the following official websites: 
 
China:  http://fta.mofcom.gov.cn/chile/xieyi/xieyizhengwen_en.pdf  
 Chile: http://rc.direcon.cl/acuerdo/1457/protocolo  
 
10. The Agreement is composed of 22 Articles, an  annex on the temporary movement of business 
persons (Annex 1) and schedules of specifi c commitments by each Party (Annex 2).  WT/REG230/3 
 Page 7 
 
 
  III. PROVISIONS ON TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
11. Taking into consideration the right of the Parties to regulate, the Agreement governs the 
measures adopted or maintained by the Parties affe cting trade in services (Article 1.1) and covers 
GATS modes of supply 1 (cross-border), 2 (consum ption abroad), 3 (commercial presence), and 
4 (temporary movement of natural persons) (Article 1.3).  The definitions used by the Agreement do 
not differ from those of the GATS. 
12. The Agreement does not apply to: a) financial services4;  b) government procurement; 
subsidies or grants provided by a Party incl uding government-supported loans, guarantees, and 
insurance;  c)  subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance;  d) national maritime cabot age;  and e) air services, including domestic and 
international air transportation services, whether sch eduled or non-scheduled, and related services in 
support of air services, other than: i) specialty air services;  ii) aircraft repair and maintenance services during which an aircraft is withdrawn from service;  iii) the selling and marketing of air transport services iv) computer reservation system (CRS) se rvices;  v) airport operation and vi) ground 
handling services;  and f) services supplied in the exer cise of governmental authority.  In addition the 
annex on temporary movement  of business persons indicates in its paragraph 1b) that it does not apply 
to measures regarding citizenship, nationality, pe rmanent residence, or employment on a permanent 
basis.  Hence the scope of the Agreement is narro wer than that of the GATS in that it excludes 
subsidies, financial services and ma ritime cabotage.  But it is also wider than the scope of the GATS 
in that it includes specialty air services, airport operation services, and ground handling services, three 
subsectors that are not explicitly listed by paragra ph 3 of the GATS air transport annex.  The Annex 
on temporary movement of business persons has a wider scope than the Annex on Movement of 
Natural Persons  Supplying Services of the GATS as it extends to all business persons and entails 
further obligations notably in terms of transparency and of dispute settlement. 
B. D
ENIAL OF BENEFITS  
13. Subject to prior notification and consultation, a Party may deny the benefits of the Agreement 
to service suppliers of the other Party where the ser vice is being supplied by a juridical person owned 
or controlled by persons of a non-party or the denying Party, and the juridical person has no 
substantial business activities in the territo ry of the other Party (Article 10).   
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
14. The market access provision is identical to Ar ticle XVI of the GATS except for the absence 
of footnote 8 to Article XVI5 relative to capital transfers linked to mode 1 and mode 3 provision of 
services.  There is no capital transfer commitment since this is expected to be regulated in a future 
investment agreement between Chile and China.  In the case that specific market access commitments 
                                                      
4 The Parties have clarified the meaning of this provision by indicating that "all WTO commitments 
apply except the financial services commitments" and that "the financial servi ces commitments are excluded 
under the FTA." 
5 Footnote 8 to Article XVI of the GATS stipulates that "If a Member undertakes a market-access 
commitment in relation to the supply of a service through th e mode of supply referred to in subparagraph 2(a) of 
Article I and if the cross-border movement of capital is an essential part of the service itself, that Member is 
thereby committed to allow such move ment of capital.  If a Member un dertakes a market-access commitment in 
relation to the supply of a service through the mode of suppl y referred to in subparagraph 2(c) of Article I, it is 
thereby committed to allow related tr ansfers of capital into its territory. WT/REG230/3 
Page 8  
 
are undertaken, six types of limitations cannot be maintained or adopted by the Parties, unless otherwise specified in the schedules (Article 4).   
2. National and MFN treatment 
15. Under Article 2, which is identical to Article  XVII of the GATS including its footnote, each 
Party will accord to services and service suppliers of the other Party treatment no less favourable than 
it accords to its own like services and service suppliers  in the sectors it has scheduled, and subject to 
any conditions and qualifications set out therein.   The Agreement does not have a MFN provision 
regarding like services and service suppliers of a non-Party. 
3. Commercial presence  
16. No specific provision on commercial presence, per se , is provided under the Agreement.  The 
definitions of commercial presence and of the ownershi p or control of a juridical person are identical 
to that of the GATS.  The concept of juridical person is not defined by the Agreement.  
4. Movement of natural persons 
17. The Agreement contains an Annex on the Tem porary Movement of Business Persons.  This 
term is broader than that used by the GATS ("na tural persons") covering in addition to trade in 
services, trade in goods and investment activities "a natural person of a Party who is engaged in trade 
in goods, trade in services or investment activities."  For trade in services, unlike paragraph 1 of the 
GATS annex on the movement of natu ral persons, the Agreement does not  require that the person be a 
services supplier, or a person, of a Member who is employed by a service supplier of a Member in respect to the supply of a service. 
18. Paragraph 3 of the Annex indicates that the a nnex shall not prevent a Party from applying 
measures to regulate the entry of natural persons an d is identical to paragraph 4 of the GATS annex 
including its footnote specifying that "the sole fact of requiring a visa shall not be regarded as nullifying or impairing benefits under a specific  commitment".  The Annex also foresees the 
publication by each party of explanatory material re garding its legislation on the movement of natural 
persons as well as the establishment or maintenan ce of appropriate mechanisms to respond to 
enquiries from interested persons (paragraph 4 of th e annex).  Recourse to the following mechanisms: 
inscription of the case on the agenda of the bilate ral commission, good offices, conciliation, mediation 
and dispute settlement mechanisms shall apply to th e movement of natural persons only if the matter 
involves a pattern of practice and if the business person has exhausted all available administrative 
remedies.  The fact of not having obtained a final de termination by the competent authority within one 
year shall be considered as an exhaustion of reme dies.  Finally the annex establishes a Working Group 
on the Temporary Entry of Business Persons, that m eets annually.  This Group has not yet met and no 
specific measure has been taken.   
19. Both China and Chile submitted bilateral da ta on the movement of natural persons 
(Tables III.1 and III.2).  The two sets of data do not  match because they have a different statistical 
basis:  China uses exit entry statistics while  Chile collects temporary residence figures.
 
Table III.1.  Movement of  natural persons between China and Chile, 2007-2009 
Year to Chile from Chile 
2007 4,053 11,761 
2008 4,597 13,014 
2009 5,182 12,245 
 
Source:  Chinese authorities, Exit-Entry Administration Bureau of the Ministry of Public Security. 
 
  WT/REG230/3 
 Page 9 
 
 
  Table III.2.   
Chile:  Chinese nationals with tempor ary residence permits in Chile, 2007-2010 
Year Number of persons 
2007 934 
2008 1,261 
2009 1,339 
2010 1,338 
 
Source : Chilean authorities. 
 
20. The limitations on commercial presence or moveme nt of natural persons in the subscribed 
services sectors in the Parties' schedule of commitments are summarized under the section on 
liberalization commitments below.   
D. LIBERALIZATION COMMITMENTS  
21. The schedules of commitments are contained in Annex II.  The Annex follows a "positive-list 
approach" whereby the obligations of market access (Article 3), national treatment (Article 2), and 
additional commitments (Article 5) apply only to th e sectors listed therein, subject to the limitations 
and conditions inscribed therein as prescribed in Ar ticle 4.  Article 4.2 specifies, along the lines of 
Article XX.2 of the GATS that measures inconsistent with both Articles on market access and national treatment are inscribed in the column rela ting to market access only, although considered as 
providing a qualification to national treatment as well.  
22. Article 9 stipulates that three years after th e entry into force of the Agreement, the 
Commission instituted by the Agreement in goods ma y review the Agreement taking into account the 
developments, laws and regulations on trade in services of the parties as well as the progress made at the World Trade Organization and other interna tional organizations of which both Parties are 
members.  The Agreement does not contain any provisions on the modification of schedules and compensations comparable to Article XXI of the GATS.  
23. Article 4.3 indicates that "the Parties agree to  incorporate their current schedules of specific 
commitments under the GATS to this Agre ement except for financial services." 
1. China 
(a) Horizontal commitments 
24. With regard to mode 3 market access, the Ag reement contains for transparency purposes in 
footnote 2 a precision on the definition of a "foreign invested enterprise" ("a foreign enterprise duly 
constituted or otherwise organized under "law on Chinese-Foreign Equity Joint ventures", "law on 
Chinese –Foreign contractual Joint Ventures "a nd Law on Foreign–Capital Enterprises").  
25. For mode 3, national treatment, the Agreemen t carves out existing subsidies granted to 
domestic services suppliers in the sectors listed in the services commitments of China in the 
Agreement as well as in any new sectors and sub sectors scheduled in future services negotiations 
between Chile and China.  Other horizontal commitm ents are identical to those undertaken under the 
GATS.  
(b) Sector-specific commitments 
26. Parties have indicated that they have corrected several typographical errors that are contained 
in their GATS commitments.  Substantially there were  additional commitments to those undertaken in 
GATS.  In the case of Chile, the list of commitme nts was the most liberal that had ever been WT/REG230/3 
Page 10  
 
committed, some new sectors were Computer Relate d Services and Integrated Engineering Services.  
The Parties have also indicated that, even though in some cases in the Supplementary Agreement, 
specific sectors of the lists were repeated fro m those undertaken in GATS, Parties had included 
additional commitments, thus improving liberalization.   
27. China has improved its commitments in computer services by suppressing the joint venture 
requirement in the GATS for software implemen tation services and by allowing wholly foreign 
owned enterprises in this subsector.  In addition, unlike in China's GATS Schedule, the commitments 
in the Agreement are qualified in the sectoral colu mn by a precision, namely that "computer and 
related services do not cover the economic activity consisting in the provision of content services 
which requires computer and related services as means of supply." 
28. For related scientific technical consulting ser vices a new subsector "field services for iron, 
copper and manganese" has been added.  However as noted above "offshore oil-field and onshore oil 
fields services" that were mentioned in Chin a's GATS commitments are not mentioned in the 
Agreement.  
29. Improvements have been made to business servi ces sectors in which China already has GATS 
commitments: for real estate services involving own or leased property, the exclusion of foreign 
enterprises from "high standards real estate projects
6 has been lifted and for real estate services on a 
fee or contract basis, the requirement of a com pulsory joint venture has been suppressed and wholly 
foreign owned enterprises allowed.  Similarly th e joint venture requirement for translation and 
interpretation services has been removed and wholly foreign owned enterprises allowed.  China has 
also allowed wholly foreign owned enterprises and suppressed a joint venture requirement for 
environmental services. 
30. For those business services in which Chin a has no GATS commitments, two new sectors, 
market research services (limited to investigati on services designed to secure information on the 
prospects and performance of an organization's products in the market) and services related to 
management consulting (limited to project manage ment services other than construction services) 
have been added, both being subject to a joint venture requirement and an economic needs test.  
Another new sector, services incidental to mining (lim ited to oil and natural gas) has been added, the 
condition for commercial presence being that the e xploitation takes place in cooperation with Chinese 
partners.  
31. With regard to recreational, cultural and spor ting services (other than audiovisual services) 
where China has no GATS commitments, it has taken co mmitments in three new subsectors:  sports 
event promotion services, sports events organi zation services and sport facility operation services 
excluding golf. 
32. For air transport services, China has improved comm itments in mode 3 for aircraft repair and 
maintenance, by removing the economic needs test required for obtaining a licence.  While not taking 
commitments under mode 1, China no longer indicates mode 1 as technically unfeasible for this 
sector.  
33. For computer reservation system servi ces the condition that China listed in its 
GATS commitments for mode 1, market access ("wh en having agreements with Chinese aviation 
enterprises and Chinese computer reservation system")  does not appear in the Agreement.  Similarly 
the entry under China's GATS commi tments according to which "(b) foreign computer reservation 
system may provide services to representative offic es and sales offices established in the destination 
cities in China by foreign aviation enterprises which have the right to engage in business according to 
                                                      
6 That is real estate projects with construction co sts per unit twice more than the average construction 
costs per unit in the same city.  WT/REG230/3 
 Page 11 
 
 
  the bilateral aviation agreements" does not appear in the Agreement.  According to China, the 
commitment in CRS in the Agreement is in accord ance with Chinese relevant laws and regulations.  
34. China has taken commitments in mode 3 for computer reservations, a mode that was unbound 
under its GATS commitments, the condition being a jo int venture with Chinese controlling share or 
dominant position and an economic needs test for the licence. 
35. Finally, in air transport it has undertaken commitments in four new subsectors: selling and 
marketing of air transport services where there are no restrictions under modes 1 and 2 and under 
mode 3 airlines may establish pending designation through a bilateral air services agreement;  airport operation services and speciality air services where there are no restrictions under modes 1 and 2, mode 3 is unbound;  and ground handling services for which modes 1 and 2 are unbound, and with 
regard to mode 3 only joint ventures with at least 51% Chinese share are permitted. 
36. Table III.3 below summarizes China's speci fic commitments under Annex II of the 
Agreement and compares them with its GATS schedule, excluding mode 4 commitments.  
 
Table III.3 China:  comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Same  
B. Computer and related services  √ Improved7 
C. Research and development services - - 
D. Real estate services 
E. Rental and leasing services √ 
√Improved 
Same  
F. Other √ Improved  
2. COMMUNICATION SERVICES    
A. Postal - - 
B. Courier √ Same  
C. Telecommunication  √ Same  
D. Audiovisual √ Same  
E. Other - - 
3. CONSTRUCTION AND RELATED  ENGINEERING SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Same  
5. EDUCATION SERVICES √ Same 
6. ENVIRONMENTAL SERVICES √ Improved  
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Excluded 
B. Banking and other financial services √ Excluded 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Same 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - New 
11. TRANSPORT SERVICES   
A. Maritime √ Same 
B. Internal waterways √ Same 
C. Air  √ Improved8 
D. Space - - 
E. Rail  √ Same 
F. Road √ Same 
Table III.3 (Cont'd)
                                                      
7 As indicated in paragraph 27, the Agreement un like the GATS states that "computer and related 
services do not cover the economic activity consisting in the provision of content services which requires computer and related services as means of supply." 
8 As indicated in paragraph 33 China's commitments under the Agreement do not reproduce the 
following entry in its GATS commitments;  "(b) foreign computer reservation system may provide services to representative offices and sales offices established in the destination cities in China by foreign aviation 
enterprises which have the right to engage in busine ss according to the bilateral aviation agreements." WT/REG230/3 
Page 12  
 
Sectors GATS FTA 
11. TRANSPORT SERVICES (Cont'd)   
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Same: Same commitments made under the Agreement as those under the GATS. 
 
Source :  China's Schedule of Specific Commitments under the GATS (S/DCS/W/CHN) and Annex II under the Agreement.  
The comparison only concerns modes 1-3, market access and national treatment, and additional commitments, it 
does not concern the issues of mode 4. 
 
2. Chile 
(a) Horizontal commitments 
37. The "encaje" legislation (ley 18.840) and decr eto ley 600 of 1974 which are scheduled as  
restrictions in Chile's Schedule in the Agreemen t are not listed in its GATS commitments.  This 
relates to Chile's policy when including commitments in investment, both in investment agreements or 
in services that include mode 3) to establish reserva tions regarding the Central Bank law and DL 600.  
Chile has also included this reservation in its GATS revised offer.9   
38. Chile notes that currently there is no "encaje" or "reserve re quirement" in force.  However 
Chile maintains a reservation on the Central Bank's power (under certain conditions determined under 
law 18.840) to maintain the stability of the curre ncy and the normal func tioning of internal and 
external payments.  One of these tools is related to its power to determine a reserve requirement. 
39. Horizontal restrictions are applicable both to  national treatment and market access.  In the 
case of sectoral commitments restrictions may be either based on national treatment or market access.  
40. The Agreement includes a restriction that do es not appear in Chile's GATS schedule on the 
right to adopt measures establishing rights or preferences to original ethnic groups .  This reservation 
also appears in Chile's investment agreemen ts and in Chile's revised GATS offer.   
41. Chile has improved its commitments regarding th e movement of natural persons by reducing 
the requirement that companies est ablished in Chile employ at least 85% of Chilean staff for 
companies employing over 15 persons in the GATS to  25 under the Agreement.  There is no similar 
threshold for professional services.  Finally Chile  has added two new categories to its mode 4 
commitments, business visitors10 and persons responsible for the setting up of the commercial 
presence of a service provider in Chile. 
                                                      
 9 Chiles notes that t his reservation forms part of the Investment Chapter in a negative list approach 
FTA, like FTA's with the USA and Mexico.  In the FTA with positive list approach it is included like a 
horizontal commitment (like in  the China – Ch ile Agreement). 
10 Defined as natural persons seeking temporary entry for the purpose of participating in business 
meetings, performing market or investment studies, generating business contacts or participating in negotiations 
related to the supply of services in the future, including the setting up of a business or enterprise in the territory 
of Chile.  WT/REG230/3 
 Page 13 
 
 
  (b) Sector-specific commitments  
42. With regard to professional services Chile has improved its commitments in sectors in which 
it already has GATS commitments:  the scope of advisory legal services that can be delivered by foreigners has been widened from "public interna tional law and internati onal commercial law" under 
the GATS to "international and foreign law" in th e Agreement and full commitments have been made 
in modes 1 and 2 for these services whereas they were unbound under the GATS.  Similarly 
commitments for advisory and pre-design architectur al services, architectural design services, general 
management consulting services, marketing ma nagement consulting services, and production 
management consulting services have been impr oved with no restrictions under mode 1 and 2 
whereas those modes are unbound under the GATS. 
43. Regarding architectural and engineering service s, commitments have been improved for three 
sub-sectors, namely advisory and pre-design architectural services, architectural design services and engineering design services for industrial processes and production by the lifting of all restrictions in 
modes 1 and 2 that were up to now unbound.  In  addition, Chile made commitments in a new 
subsector, integrated engineering services for energy services but with a relatively restrictive regime 
(unbound for modes 1 and 3 under market access, exclusion of anthropological, archaeological and 
paleontological studies as well as of exclusion of an y other activity conducted in the 20 nautical mile 
maritime zone and in border areas for m odes 1, 2 and 3 under national treatment). 
44. Chile has also taken liberal commitments in services in which it had no previous 
commitments under the GATS such as arbitration and mediation/ conciliation services (with some exceptions for modes 1 and 2 but no restrictions fo r mode 3), computer services (consultancy services 
related to the installation of computer hardware , software implementation services, data processing 
services except for financial services and maintenan ce and repair services of office machinery and 
equipment including computers, all with no restric tions in modes 1-3), research and development in 
natural sciences, real-estate services involving owned or leased property, and on a fee or contract basis, advertising services (except other advertis ing services), market research and public opinion 
polling services, packaging services, public relatio n services, services incidental to manufacturing 
(services incidental to manufacturing stricto sensu , manufacture of textiles, wearing apparel and 
leather products on a fee or contract basis, and manufacture of other non-metallic mineral on a fee or contract basis) and services incidental to mining.   
45. In contrast to the GATS in which it has no co mmitments in distribution services, Chile has 
made commitments in a large part of this sector.  This concerns wholesale trade services and non-food 
retailing services with a very liberal regime (no limitations for modes 1-3).  Chile has also made 
liberal commitments in some education services, a sector in which it has no GATS commitments 
(post-secondary technical and vocational edu cation services-and adult education services not 
elsewhere classified).  
46. Chile has also undertaken commitments in all environmental services (sewage services, refuse 
disposal services, sanitation and similar services, cleaning services of exhaust gases, noise abatement 
services, nature and landscape protection services and other environmental protection services not elsewhere classified) which are not included in its GATS commitments, with no limitations in mode 2 and "unbound except the criteria in Article 3 of the Agreement-market access- shall be applied on the 
basis of national treatment" for mode 1 and 3.  The Parties have indicated that this entry meant that 
numerical restrictions, if any, would be  applied on a national treatment basis. 
47. Three value-added telecommunication services, voice-mail, electronic data interchange and 
code and protocol convers ion have been added by Chile with the same regime as for value added 
services in which it has GATS commitments (a co rresponding agreement with an international 
services concessionaire for mode 1 and the existence of contract with a public service concessionaire WT/REG230/3 
Page 14  
 
and the granting of a permit and of a complementary services authorization from the undersecretariat for telecommunications for mode 3).  Chile's co mmitments under the Agreement also contain new 
commitments on private leased circuits for voice telephone services, data transmission and electronic 
mail, subject to the "the granting of limited services" for mode 3.  
48. Chile has also undertaken commitments in sporting and other recreational services, a sector 
for which Chile has no GATS commitments, with par ticipation limited to one team and combining the 
possibility of equity ownership restrictions a nd minimum capital requirements for modes 1-3.  
49. In air transport services commitments have been improved in four subsectors: selling and 
marketing of air transport services, aircraft repair and maintenance, computer reservation services (from unbound in modes 1 and 2 to no limitations ), and ground handlin g (from unbound to no 
limitations in mode 2).  The names of two of th ese subsectors have been modified and expanded from 
"opening of offices" and "issue and sale of air-trans port fares and tickets to "selling and marketing of 
air transport services", and "ground operation of s upport equipment" to "ground handling".  Finally 
two new air transport subsectors have been adde d: airport operation services and specialty air 
services. 
50. Table III.4 below summarizes Chile's specific commitments under Annex II of the Agreement 
and compares them with its GATS schedule, excluding mode 4 commitments. 
 
Table III.4:   
Chile:  comparison between the GATS and the Agreement specif ic commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  - New 
C. Research and development - New 
D. Real estate - New 
E. Rental/Leasing services without operators √ Same 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Improved  
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES - - 
4. DISTRIBUTION SERVICES - New 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Excluded 
B. Banking and other financial services √ Excluded 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Same 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - New 
11. TRANSPORT SERVICES   
 A. Maritime  - -
 B. Internal waterways - - 
 C. Air  √ Improved 
 D. Space  - - 
 E. Rail - - 
 F. Road - - 
 G. Pipeline - - 
 H. Services auxiliary to all modes of transport - - 
 I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -  WT/REG230/3 
 Page 15 
 
 
  Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
 
Source : Chile's Schedule of Specific Commitments under the GAT S (S/DCS/W/CHL) and Annex II under the Agreement.  
The comparison only concerns modes 1-3, market access and national treatment, and additional commitments, it 
does not concern the issues of mode 4. 
E. INVESTMENT  
51. The agreement in goods between the Parties mandates them to negotiate, unless otherwise 
agreed, on trade in services and investment after the conclusion of the negotiations on goods (Article 120).  In addition Article 18 of the Ag reement reiterates and specifies this mandate for 
investment requiring that the "Parties shall co mmence negotiations on a mutually advantageous 
basis".  Those negotiations are underway, including on the issue of the legal relationship between 
services trade and investment. 
F. R
EGULATORY PROVISIONS  
1. Domestic regulation 
52. Article 6 on domestic regulation is based on Ar ticle VI of the GATS and reproduces part of 
its disciplines.  The Parties must ensure that all measures of general application affecting trade in 
services in sectors where specific commitments have been undertaken are implemented in a 
reasonable, objective and impartial manner.  The Pa rties shall also aim to ensure that measures 
relating to qualification requireme nts and procedures, technical standards and licensing requirements 
do not constitute unnecessary barriers to trade in services and hence that those measures are inter alia , 
a) based on objective and transparent criteria su ch as competence and the ability to supply the 
services, b) not more burdensome than necessary to en sure the quality of the service and c) in the case 
of licencing procedures not in themselves a rest riction on the supply of the service.  These 
two obligations may be reviewed to incorporate the results of negotiations on Article VI of the GATS 
in the Agreement.  The provisions of the Agreement on information on the applicants (Article 6.4) are 
identical to Article VI.3 of the GATS and require  the competent authorities to inform applicants 
within a reasonable period of time of the decision taken when authorization is required to provide a 
service in sectors where commitments have been undertaken.    
53. The Agreement does not contain an explicit reference to nullification or impairment 
comparable to that of Article VI.5 of the GATS allowing the possibility of challenging through 
dispute settlement a decision regarding licensing  and qualification requirements and technical 
standards in a manner which does not comply with the three criteria listed above and hence nullify or 
impair commitments in a manner that might not have  been reasonably expected at the time where the 
commitments were made. Similarly the Agreement contains no obligation to provide for adequate 
procedures to verify the competence of professionals of the other party in sectors covered by commitments along the lines of Article VI.6 of the GATS, nor does it contain a reference to international standards as a benchmark to assess confor mity with domestic regul ation obligations as in 
Article VI.5(b) of the GATS.   
54. A new feature compared to Article VI of the GATS, is that the Parties shall consult 
periodically aiming at removing any remaining citizenship requirements for the licensing or 
certification of each other's service suppliers (Article  5.4).  No such consultations have taken place 
yet. WT/REG230/3 
Page 16  
 
2. Recognition 
55. Article 7 contains provisions on the recogn ition of the education or experience obtained, 
requirements met, or licences or certifications of service suppliers of other Party which essentially mirror the provisions of GATS Article VII.  In add ition Article 7.2 indicates that the Parties may, or 
encourage their relevant competent bodies to, ente r into negotiations on recognition of qualifications 
requirements, qualification procedures and/or regist ration procedures.  No such negotiations have 
taken place yet. 
3. Subsidies 
56. The Agreement does not contain a provision on subsidies per se , nor refers to Article XV of 
the GATS.  However, as described in section II.B ( scope and definitions) above, subsidies or grants 
(including government-supported loans guarantees a nd insurance) provided by a Party are excluded 
from the scope of the Agreement. 
4. Safeguards 
57. The Agreement does not contain any provision on safeguards.  
IV. GENERAL PROVISIONS OF THE AGREEMENT 
A. T
RANSPARENCY  
58. The Agreement incorporates chapter IX of the agreement in goods in paragraph 9 and 50 on 
transparency mutatis  mutandis .11  In addition the Agreement stipul ates that each Party shall establish 
appropriate mechanisms for responding to enquiries from interested persons (Article 8) and a best 
endeavour  clause to take into consideration su bstantive comments received from interested persons 
with respect to proposed laws and regulations before  a Party adopts its final law or regulation.  The 
Agreement also foresees a best e ndeavour clause for each Party to allow a reasonable period of time 
between the publication of final laws and regulations  and their effective date of entry into force. 
B. PAYMENTS AND TRANSFERS  
59. The Parties agree not to apply restrictions on in ternational transfers and payments relating to 
trade in services apart from balance-of-payme nts exceptions under Article XII of the GATS 
(Article 15).  
C. EXCEPTIONS  
60. General and security exceptions are maintain ed by incorporating into the Agreement 
mutatis mutandis  Article XIV and XIV bis of the GATS (Articles 12, 13 and 14). 
D. ACCESSION AND TERMINATION  
61. There is no provision in the Agreement for the accession of third parties.  Any Party can 
terminate the Agreement by written notification to the other Party;  the Agreement will expire 
180 days after the date of notification. 
                                                      
11 For more details see WT/REG230/1 paragraph 39.  WT/REG230/3 
 Page 17 
 
 
  E. INSTITUTIONAL FRAMEWORK  
62. Article 16 provides for the establishment of a Committee on Trade in Services, comprising 
representatives of the Parties, under the Commission cr eated by the agreement in goods.  Its functions 
include promoting trade in services and addressing ba rriers to trade in services between the Parties 
and if appropriate referring them to the Commissi on.  This Committee shall meet on the request of 
either Party or the Commission.  This Committee has not yet met. 
63. As described above in Section III.D (Liberalization commitments on services), three years 
after the entry into force of th e Agreement, the Commission institute d by the agreement in goods may 
review the Agreement taking into account the develo pments, laws and regulations on trade in services 
of the Parties as well as the progress made at the WT O and other international organizations of which 
both Parties are members (Article 9).  The Parties may also agree on any modification of or additions 
to the Agreement (Article 20).  The Agreement also foresees that if any provision of the goods 
Agreement incorporated into th e Agreement is amended (e.g. on transparency) the Parties shall 
consult on whether to amend the Agreement. 
F. DISPUTE SETTLEMENT  
64. For the settlement of disputes under the Ag reement, the provisions of Chapter X12 
(dispute settlement) of the agreement in goods between the Parties apply (Article 11).   
G. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
65. The Agreement's relationship with  tax conventions is addressed  in Article 12.2 under which  
nothing in the Agreement shall affect the rights and obligations of the Parties under any tax convention in force between the Parties.  Article 4. 3 stipulates that the parties agree to incorporate 
their current schedules of specific commitments un der the GATS to this supplementary agreement 
except for financial services.  The status of other RTAs in force between the Parties is detailed in 
Table IV.1 below.   
Table IV.1 
Chile and China: Participation in other RTAs (not ified and non-notified in force), as of August 2011 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHILE a 
Turkey 01.03.11 Goods 2011 Enabling Clause 
Colombia 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Australia 06.03.09 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 Union 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
Table IV.1 (Cont'd)
                                                      
12 For the details, please refer to paragraphs 51-52 of WT/REG230/1. WT/REG230/3 
Page 18  
 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Servi ces 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
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 
Guatemala (Central America) 23.03.10 Goods & Services Not notified  
Ecuador 25.01.10 Goods Not notified  
Peru 01.03.09 Goods Not notified  
Cuba 26.07.08 Goods Not notified  
Honduras (Central America) 19.07.08 Goods & Services Not notified  
MERCOSUR 01.10.96 Goods Not notified  
Bolivia 06.04.93 Goods Not notified  
Venezuela 02.04.93 Goods Not notified  
CHINA  
Peru 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Pakistan 10.10.09 
01.07.07 Services 
Goods 2010 
2008 GATS Art. V 
GATT Art. XXIV 
Singapore 01.01.09 Goods & Services 2009  GATT Art. XXIV & GATS Art. V 
New Zealand 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
ASEAN 01.07.07 
01.07.03 Services 
Goods 2008 
2004 GATS Art. V 
Enabling Clause 
Chile 01.10.06 Goods 2007 GATT Art. XXIV 
Hong Kong, China 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
Macao, China 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
APTA (Accession) 01.01.02 Goods 2004 Enabling Clause 
Chinese Taipei 12.09.10 Goods & Services Not Notified 
 
Source: WTO Secretariat. 
 a Chile has concluded six RTAs under the LAIA framework (with  MERCOSUR, Bolivia, Cuba, Ecuador, Peru, and Venezuela).  
These RTAs have not been notified, but are included in periodic reports submitted by LAIA. 
 APTA: ASIA PACIFIC TRADE AGREEMENT 
GSTP: GENERAL SYSTEM OF TRADE PREFERENCES AMONG DEVELOPING COUNTRIES 
LAIA: LATIN AMERICAN INTEGRATION ASSOCIATION PTN: PROTOCOL RELATING TO TRADE NEGOTIATIONS AMONG DEVELOPING COUNTRIES  
__________