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COMMISSION OF THE EUROPEAN COMVIUNITIES 
COM(90) 560 final 
Brussels, 23 November 1990 
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i'v: Proposal for a 
COUNCIL DECISION 
concerning the conclusion of the Framework Agreement for cooperation 
between the European Economic Community and the Republic of Chile. 
(presented by the Commission) 
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Explanatory memorandum 
1. By its decision of 16 July 1990, the Council authorized the Commission 
to open negotiations with the Republic of Chile with a view to concluding a 
framework agreement for cooperation and adopted directives to this end. 
2. Two negotiating sessions took place, the first on 20 and 
21 September 1990; and the second on 26 October 1990. The second session 
ended with the initialling of the agreement between the Community and the 
Republic of Chile. An exchange of letters concerning shipping and a 
declaration by the Community on the Generalized Preferences System are 
attached to the Agreement and form an integral part of it. 
3. With regard to fisheries it has been agreed that when the Agreement is 
signed there will be an exchange of letters between the Commission and the 
Chilean Mission to the Communities. In the exchange of letters the 
Commission will inform the Chilean side of the Community's interest in 
negotiating an EEC-Chile fisheries agreement. The Chilean side will reply 
that Chile will be in a position to discuss fisheries once the Chilean 
Congress has passed a new law on fisheries, which is currently being 
debated. 
4. The Commission considers that the text initialled is in line with the 
negotiating directives adopted by the Council. 
5. Because the legal basis of the Agreement includes Article 235 of the 
Treaty of Rome in addition to Article 113, Parliament must be consulted. 
6. With a view to the signature and conclusion of this Framework Agreement 
for cooperation between the Community and the Republic of Chile, the 
Commission is proposing to the Council that it approve the Agreement and 
adopt the attached proposal for a Decision. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Comunity, 
and in particular Articles 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas the Community should approve, for the attainment of its aims in the 
sphere of external economic relations, the Framework Agreement for trade 
and economic cooperation with the Republic of Chile; 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Framework Agreement for trade and economic cooperation between the 
European Economic Community and the Republic of Chile is hereby approved on 
behalf of the Oaramunity. 
The text of the Agreement is attached to this Decision. 
Article 2 
The President of the Council shall give the notification provided for in 
Article 21 of the Agreement.1 
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The Commission, assisted by representatives of the Member States, shall 
represent the Community in the Joint Committee set up by Article 17 of the 
Agreement. 
Article 4 
This Decision shall enter into force on the day following its publication 
in the Official. Journal of the European Conraunities. 
Done at Brussels, 
For the Council 
The President 
1 The date of entry into force of the Agreement will be published in the 
Official Journal of the European Communities by the General Secretariat 
of the Council. 
Framework agreement for cooperation 
between the European Economic Community 
and the Republic of Chile 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
of the one part, 
THE GOVERNMENT OF THE REPUBLIC OF CHILE, 
of the other part, 
CONSIDERING the traditional links of friendship between the Member States 
of the European Economic Community, hereinafter referred to as "the 
Gamrnunity", and the Republic of Chile, hereinafter referred to as "Chile", 
REAFFIRMING the importance they attach to the principles of the United 
Nations Charter, to democratic values and to respecting human rights, 
CONSIDERING the readiness of the Community and its Member States to help 
address the social and economic problems confronting Chile as it returns to 
democracy, 
TAKING ACCOUNT of their mutual interest in establishing contractual links 
in order to develop extensive cooperation in areas which are of key 
importance to social and economic progress, and in stepping up and 
diversifying trade and encouraging the flow of investment, 
MINDFUL of the importance of securing the participation in cooperation of 
the individuals and bodies with a direct interest in the matter, 
particularly economic operators and the bodies which represent them, 
TAKING AOOOONT of their membership of the General Agreement on Tariffs and 
Trade (GATT) and of the need to uphold and reinforce the rules for free and 
unhampered international trade, 
HAVE DECIDED to conclude this Agreement and to this end have designated as 
their plenipotentiaries : 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
THE REPUBLIC OF CHILE, 
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WHO, having exchanged their full powers, found in good and due form, 
HAVE AGREED AS FOLLOWS: 
Article 1 
Democratic basis for coopération 
Cooperation ties between the Community and Chile and this Agreement in its 
entirety are based on respect for the democratic principles and human 
rights which inspire the domestic and and external policies of both the 
Community and Chile. 
Article 2 
Boonomic coopération 
1. The Contracting Parties, taking into account their mutual interest and 
long- and medium-term economic objectives, undertake to establish economic 
cooperation of the widest passible scope. The aims of such cooperation 
shall be in particular: 
(a) generally to step up and diversify economic links between them, 
(b) to contribute to the development of their economies and standards of 
living, 
(c) to open up new markets and new sources of supply, 
(d) to encourage the flow of investment, 
(e) to promote cooperation between economic operators, particularly small 
and medium-sized enterprises, 
(f) to create new jobs, especially in the most disadvantaged sectors, and 
for young people and women, 
(g) to protect and improve the environment, 
(h) to encourage rural development including an increase in agricultural 
and food production. 
2. Without excising any area from the outset, the Contracting Parties 
shall determine by common agreement the spheres to be covered by economic 
cooperation. Cooperation shall centre particularly on the following: 
(a) energy and mining, 
(b) agriculture, fisheries and forestry, 
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(c) industry, especially the capital goods and other industries connected 
with the sectors referred to above and also support services, 
(d) financial, hanking and insurance services, 
(e) activities connected with transport, telecommunications, telematics, 
tourism and other tertiary industries, 
(f) intellectual and industrial property, 
(g) quality standards and control. 
3. In the interests of attaining the objectives of economic cooperation, 
the Contracting Parties shall, each in accordance with its laws, endeavour 
to promote activities including the following: 
(a) a continuous exchange of views and information in connection with 
cooperation, primarily by gaining access to existing databases or by 
setting up new ones, 
(b) setting up joint ventures, 
(c) negotiating agreements on transferring technology and on 
subcontracting and representation, 
(d) cooperation between financial institutions, 
(e) conventions between the Member States of the Community and Chile to 
prevent double taxation; 
(f) organizing visits, meetings and activities for promoting cooperation 
between individuals and delegations representing firms or economic 
organizations, and creating the appropriate machinery and 
institutions, 
(g) organizing seminars and meetings between businessmen, arranging and 
holding specialized fairs, exhibitions and symposia, and promoting 
contacts between economic operators at these events, 
(h) participation by the enterprises of one of the Contracting Parties in 
the fairs and exhibitions of the other Party, 
(i) consultancy services and the provision of technical assistance, 
particularly for trade promotion and marketing. 
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Article 3 
Industrial coopération 
The Contracting Parties agree to promote the widening and diversification 
of Chile's production in the industrial and service sectors, directing 
their cooperation activities at small and medium-sized enterprises in 
particular and encouraging steps to facilitate access on the part of these 
enterprises to sources of capital, to markets and to the appropriate 
technology. These steps may include the Joint establishment of suitable 
machinery and institutions. 
Article 4 
Coopération regarding the environment 
1. The Contracting Parties undertake to cooperate on the improvement and 
protection of the environment, addressing the issues of water, soil and air 
pollution, erosion, desertification and deforestation, and the excessive 
exploitation of natural resources. 
2. To this end, the Contracting Parties shall direct their efforts as 
regards the environment towards the following in particular: 
(a) the establishment and improvement of environmental protection 
structures in the public and private sectors, 
(b) the development and improvement of laws, regulations and standards, 
(c) research, training and information; alerting public opinion to the 
issues in question, 
(d) the execution of studies and projects and the provision of technical 
assistance, 
(e) the organization of meetings, seminars, workshops, conferences and 
visits among civil servants, specialists, engineers, businessmen and 
others fulfilling functions connected with the environment. 
Article g 
Investment 
The Contracting Parties agree: 
(a) to promote, so far as their powers, rules and regulations and policies 
permit, an increase in mutually beneficial investment, 
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(b) to improve further the favourable climate for mutual investment 
between the Community Member States and Chile, particularly by seeking 
agreements for the promotion and protection of such investment on a 
basis of non-discrimination and reciprocity. 
Article 6 
Coopération on science and technology 
1. In accordance with their mutual interest and the aims of their 
development strategy, the Contracting Parties undertake to promote 
cooperation on science and technology, in the interests of helping: 
(a) to make it easier for scientists to take part in exchanges and move 
back and forth between the Community and Chile, 
(b) to establish permanent links between both Parties' scientific and 
technological communities, 
(c) to foster the transfer of technology, 
(d) to create links between the Parties' research centres in order to 
solve jointly problems of concern to both sides, 
(e) to open up opportunities for economic, industrial and trade 
cooperation, 
(f) to strengthen scientific and technological capacity and stimulate 
innovation. 
2. Without excluding any area from the outset, the Contracting Parties 
shall together determine the spheres to be covered by economic cooperation. 
Cooperation shall include the following in particular: 
(a) high-level science and technology, notably in fields such as 
biotechnology, new materials, itdcroelectronics, data processing and 
telecommunications, 
(b) improving research capacity in areas in which it is lacking, 
(c) making and managing policy on science and technology, 
(d) promoting efficient use of natural resources, 
(e) helping repatriate Chilean scientists living abroad who wish to return 
home, 
(f ) promoting regional integration and cooperation in science and 
technology, 
(g) disseminating information and expertise in science and technology, 
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(h) technological development in the spheres of agriculture, agro-industry 
and marine science, 
(i) links between higher education and research establishments and the 
productive sector. 
3. The Contracting Parties shall facilitate and encourage measures aimed 
at furthering the objectives of scientific and technological cooperation 
between them, in particular: 
(a) joint research projects between the Parties' research centres and 
other appropriate institutions, 
(b) training for scientists, particularly in the form of research periods 
in the research centres of the other Contracting Party, 
(c) the exchange of scientific information, particularly in the form of 
jointly organized seminars, working meetings and conferences, bringing 
together prominent scientists from the countries involved. 
4. The Parties undertake to lay down appropriate procedures to bring 
about the greatest possible degree of participation by their scientists and 
research centres in cooperation between them. 
Article 7 
Trade promotion 
1. The Contracting Parties undertake to develop and diversify trade to 
the highest possible degree, taking into account the economic situation of 
each of the Parties and facilitating trade transactions between them as far 
as possible, 
Article 8 
Most-favoured-nation treatment 
1. The Contracting Parties shall grant each other most-favoured nation 
treatment in trade, in accordance with the General Agreement on Tariffs and 
Trade. 
Article 9 
The Contracting Parties undertake to give consideration to granting 
exemption from import duties and taxes for goods temporarily imported into 
their territory which are covered by the relevant international 
conventions. 
Article 1Q 
Trartft cxripej&tlga 
1. The Contracting Parties agree to examine ways and means of eliminating 
barriers to trade between them, particularly non-tariff barriers, taking 
account of the work done in this connection by International organizations. 
They shall also examine, in a constructive spirit, both bilaterally and 
multilaterally, any trade difficulties that might arise between them, 
Including those resulting from the application of health, plant health or 
environmental measures. 
2. More specifically, the Contracting Parties commit themselves, each in 
accordance with its laws, to a policy aimed at, inter alia: 
(a) cooperating bilaterally and multilaterally in the field of 
intellectual and industrial property, including origin-related 
designations, 
(b) facilitating cooperation between their customs services, particularly 
in respect of vocational training, simplification of procedures and 
detection of infringements, 
(c) taking each other's interests into account in relation to supply of 
resources, 
(d) laying the foundations for improving the terms of access for their 
products to their respective markets, 
(e) encouraging contacts between economic operators in order to diversify 
and increase reciprocal flows of trade in the various production 
sectors: agricultural, forestry, mining and industrial, 
(f) examining, making recommendations on and implementing measures for 
trade promotion in the interests of stimulating the development of 
imports and exports, 
(g) as far as possible taking into consideration each other's opinion on 
measures likely to have an adverse effect on trade between them. 
[O 
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Article 11 
Cooperation on social development 
1. The Contracting Parties shall establish cooperation in the field of 
social development in order to improve the standard of living and quality 
of life of the most underprivileged sections of society. 
2. Action to achieve this objective may include, inter alia, support for 
the following measures, especially in the form of technical assistance: 
(a) management and administration of social services, 
(b) vocational training and job-creation programmes, 
(c) setting up grassroots organizations and promoting their activities, 
(d) programmes or projects to improve housing in urban and rural areas, 
(e) drug abuse control and information campaigns, 
(f) preventive health programmes. 
Article 12 
Cooperation oonoerning government 
1. The Contracting Parties sha.11 cooperate in contributing to the 
rationalization and modernization of government service at national, 
regional and local level. 
2. To attain these objectives, the Contracting Parties shall promote, 
inter alia, the following activities: 
(a) the provision of technical assistance for projects aimed at reforming 
or improving the operation of government service, 
(b) meetings, visits, exchanges, seminars and training courses for civil 
servants and the staff of public institutions and government 
departments. 
y/ 
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Article 19 
Cooperation on information and communication 
The Contracting Parties shall establish cooperation in the field of 
information and <xmiraunication, taking account of the cultural dimension of 
their relations. 
Article 14 
Training 
1. Cooperation established within the framework of the Agreement shall 
include appropriate training. The Contracting Parties shall also set up 
specific training programmes in spheres of mutual interest. 
2. Such action shall first and foremost be aimed at training personnel, 
teachers or staff in positions of responsibility in firms, government 
departments, public services and other areas of economic and social 
activity. It may include promoting cooperation agreements between European 
and Chilean higher education and training institutes, particularly those in 
the technical, scientific and vocational training sectors. 
Article 15 
Regional cooperation and integration 
1. Cooperation between the Contracting Parties may extend to action 
undertaken within the context of cooperation or integration agreements with 
other countries in the same region, provided that such action is compatible 
with those agreements. 
2. Without discounting any sphere, the following action shall be given 
particular consideration: 
(a) cooperation on environmental issues at regional level, 
(b) development of intra-regional trade, 
(c) the strengthening of regional public and private sector institutions 
and the provision of support for undertaking oamroon policies and 
activities, 
(d) regional communications. 
H 
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Article 16 
Resources for undertaking cooperation 
In order to facilitate the achievement of the aims set out in this 
Agreement, the Contracting Parties shall make available, within the limits 
of their abilities and through their own channels, the appropriate 
resources, including financial resources. 
Article 17 
Joint Coopération Committee 
1. A Joint Cooperation Committee shall be established, consisting of 
representatives of the Community and of Chile. It shall meet once a year, 
alternately in Brussels and Santiago, on a date fixed by mutual agreement. 
Extraordinary meetings may be convened by agreement between the Contracting 
Parties. 
2. The Joint Committee shall see to the proper functioning of the 
Agreement and shall examine all issues arising from its application. In 
fulfilling this role, its main functions will be to: 
(a) consider measures for developing and diversifying trade, in accordance 
with the objectives of this Agreement, 
(b) exchange views on any points of common interest regarding trade and 
cooperation, including future programmes and the resources for them, 
(c) make recommendations for promoting the expansion of trade and for 
intensified cooperation, without neglecting the need to coordinate the 
measures planned, 
(d) in general terms, recommend solutions aimed at helping to attain the 
objectives of this Agreement. 
3. The Joint Committee may set up specialized subcommittees to assist it 
in the performance of its duties. 
1) 
11 -
Article 18 
Other agreements 
1. Without prejudice to the provisions of the Treaties establishing the 
Euriopean Communities, neither this Agreement nor any action taken under it 
shall in any way affect the powers of the Member States of the Communities 
to undertake bilateral activities with Chile in the field of economic 
cooperation or where appropriate to conclude new economic cooperation 
agreements with Chile. 
2. Subject to the provisions of paragraph 1 concerning economic 
cooperation, the provisions of this Agreement shall replace the provisions 
of the agreements concluded between the Member States of the Communities 
and Chile where such provisions are either incompatible with or identical 
to the provisions of this Agreement. 
Article 19 
Territorial application 
This Agreement shall apply, on the one hand, to the territories in which 
the Treaty establishing the European Economic Community is applied and 
under the conditions laid down in that Treaty and, on the other, to the 
territory of the Republic of Chile. 
Article 20 
Future developments 
1. The Contracting Parties may by mutual consent expand this Agreement 
with a view to increasing the levels of cooperation and supplementing them, 
each in accordance with its laws, by means of agreements on specific 
sectors or activities. 
2. Within the framework of this Agreement, either of the Contracting 
Parties may put forward suggestions for widening the scope of cooperation, 
taking into account the experience gained in its application. 
/4 
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Article 21 
Entry into force and duration 
1. Ihis Agreement shall enter into force on the first day of the month 
following the date on which the Contracting Parties have notified each 
other of the completion of the procedures necessary for this purpose. 
2. This Agreement is concluded for a period of five years. It shall be 
renewed on a yearly basis unless one of the Contracting Parties denounces 
it six months before the date of expiry. 
Annexes 
The Annexes shall form an integral part of this Agreement. 
Article 33 
Authentic languages 
This Agreement is drawn up in duplicate in the Danish, Dutch, English, 
French, German, Greek, Italian, Portuguese and Spanish languages, each text 
being equally authentic. 
Done at Brussels, 
(5 
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Anne^_I 
Draft 
Exchange of letters on maritime transport 
Sir, 
I have the honour to confirm the following: 
With regard to the barriers to trade which may arise for the European 
Economic Community and its Member States or the Republic of Chile as a 
result of the operation of shipping, it has been agreed that mutually 
satisfactory solutions on shipping should be sought with a view to 
promoting trade development. 
To this end, it has likewise been agreed that the issue should be discussed 
by the Joint Committee. 
Please accept, Sir, the assurance of my highest consideration. 
a 
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Annex II 
Declaration by the European Economic Community on the Generalized System 
of Pref erenoes 
The European Economic Community confirms the importance of the Generalized 
Preferences System - implemented by it in accordance with Resolution 
No 21 (II) of the Second United Nations Conference on Trade and 
Development - for the developing countries' trade. 
With a view to enabling Chile to make the best and fullest possible use of 
the European Economic Community's preference scheme, the Community hereby 
declares its willingness to examine in the Joint Committee tfee possibility 
of identifying ways of enabling Chile to derive maximum benefit from 13ie 
scheme in question. 
it 
Fiche Financière 
Accord-cadre de coopération CEE-Chili 
1 . Lignes budgétaires concernées 
a) lignes dont l'application est conditionnée par l'existence d'un 
Accord de coopération : 
9900 - Actions dans le cadre d'accords de coopération économique 
et commerciale. 
9315 - Actions visant la promotion de l'investissement 
communautaire dans les PVD d'Amérique latine dans le 
cadre des accords de coopération économique et 
comme r c i a Ie. 
7394 - Coopération internationale - actions de recherche et 
développement dans le cadre des accords de coopération 
avec des pays t iers. 
b) autres I ignés : 
9311 - Promotion des relations commerciales des PVD d'Amérique 
lat ine 
9312 - Actions destinées à favoriser les efforts d'intégration 
régionale ou subrégionale entre les PVD d'Amérique latine 
9313 - Coopération avec des PVD d'Amérique latine dans le 
domaine énergétique 
940 - Dépenses d'organisation de séminaires sur le SPG 
communauta i re 
946 - Ecologie dans les PVD 
949 - Programme d'actions de coopération Nord-Sud dans le 
domaine de la lutte contre la drogue. 
2. Base légale 
Accord de coopération commerciale et économique. 
3- Classi f icat ion 
DNO 
4. Peser ipt ion 
4.1. Objectif : 
Etablir une coopération dans l'intérêt des deux parties. 
i/ 
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4.2. Personnes concernées : 
Opérateurs économiques et instances responsables des deux 
part ies. 
5. Nature de la dépense 
5.1. Nature : 
Aide à fonds perdus en faveur de divers projets dans les 
différents domaines de coopération couverts par l'Accord. 
5.2. Calcul : 
Dans les prochaines années les lignes dont l'application est 
conditionnée par l'existence d'un accord de coopération 
seront, dans le cadre de la procédure budgétaire habituelle, 
dotées des montants estimés nécessaires pour tenir compte de 
l'inscription du Chili parmi les bénéficiaires de ces 
I ignés. 
Pour les autres lignes, aucune Incidence directe mais 
évolution normale dans le cadre de la procédure budgétaire. 
6. Incidence financière de l'action sur les crédits d'intervention 
6.1. Echéancier des crédits d'engagement et de paiement : 
Selon demande et approbation par les services de la 
Commission des actions à développer. 
6.2. Part du financement communautaire (en %) dans le coût total 
de I'act ion : 
à décider au cas par cas ; dans certains cas jusqu'à 100 %. 
6.3. Modalités du financement de l'action pendant l'année en 
cours : 
A partir des crédits existants. 
7. Observât ions 
Le volume des dépenses dérivées de l'accord de coopération sera 
déterminé, pour les budgets futurs, selon la procédure habituelle. 
<i 

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COM(90) 560 final 
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