Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2023/0259(NLE)**

**PROPOSAL**

**Brussels, 5 July 2023**
**(OR. en)**

**11506/23**
**ADD 3**

**POLCOM 152**
**SERVICES 30**
**FDI 18**
**COLAC 84**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 5 July 2023

To: Ms Thérèse BLANCHET, Secretary-General of the Council of the
European Union

No. Cion doc.: COM(2023) 435 final - ANNEX 1 - PART 3/3

Subject: ANNEX to the Proposal for a Council Decision on the conclusion, on
behalf of the European Union, of the Interim Agreement on Trade
between the European Union and the Republic of Chile

Delegations will find attached document COM(2023) 435 final - ANNEX 1 - PART 3/3.

Encl.: COM(2023) 435 final - ANNEX 1 - PART 3/3

11506/23 ADD 3 CP/hp
## COMPET.3 EN

EUROPEAN

COMMISSION

**ANNEX**

_**to the**_

Brussels, 5.7.2023
COM(2023) 435 final

ANNEX 1 – PART 3/3

**Proposal for a Council Decision**

**on the conclusion, on behalf of the European Union, of the Interim Agreement on Trade**

**between the European Union and the Republic of Chile**

# **EN EN**

CHAPTER 22

STATE-OWNED ENTERPRISES, ENTERPRISES GRANTED SPECIAL RIGHTS OR

PRIVILEGES AND DESIGNATED MONOPOLIES

ARTICLE 22.1

Scope

1. The Parties affirm their rights and obligations under paragraphs 1 to 3 of Article XVII of

GATT 1994, the Understanding on the Interpretation of Article XVII of GATT 1994, as well as

under paragraphs 1, 2 and 5 of Article VIII of GATS.

2. This Chapter applies to a state-owned enterprise, an enterprise granted special rights or

privileges and a designated monopoly ("entity") engaged in commercial activities. If an entity

engages in both commercial and non-commercial activities **[1]**, only the commercial activities are

covered by this Chapter.

3. This Chapter applies to state-owned enterprises, enterprises granted special rights or

privileges and designated monopolies, at all levels of government.

**1** Non-commercial activities may include carrying out a legitimate public service mandate or
any activity directly related to the provision of national defence or public security.

& /en 1

4. This Chapter does not apply to the procurement by a Party of a good or service purchased for

governmental purposes and not with a view to commercial resale or the supply of a good or service

for commercial sale, whether or not that procurement is a "covered procurement" within the

meaning of Article 21.2.

5. This Chapter does not apply to any service supplied in the exercise of governmental authority.

6. This Chapter does not apply to state-owned enterprises, enterprises granted special rights or

privileges and designated monopolies in cases where, in any one of the three previous consecutive

fiscal years, the annual revenue derived from the commercial activities of the entity was less than

100 million Special Drawing Rights (SDRs). **[1]**

7. Article 22.4 does not apply to the services sectors which are outside the scope of this

Agreement.

8. Article 22.4 does not apply to the extent that a state-owned enterprise, enterprise granted

special rights or privileges or designated monopoly of a Party makes purchases and sales of goods

or services pursuant to:

(a) any existing non-conforming measure that the Party maintains, continues, renews or amends

in accordance with Articles 10.11, 11.8 or 18.10 as set out in its schedule in Annex 10-A; or

**1** During the first five years from the entry into force of this Agreement, the threshold will be of
less than 200 million SDR.

& /en 2

(b) any non-conforming measure that the Party adopts or maintains with respect to sectors,

subsectors or activities in accordance with Articles 10.11, 11.8 or 18.10 as set out in its

schedule in Annex 10-B.

ARTICLE 22.2

Definitions

For the purposes of this Chapter and Annex 22:

(a) "commercial activities" means activities carried out by an enterprise the end result of which is

the production of a good or supply of a service to be sold in the relevant market in quantities

and at prices determined by the enterprise, which are undertaken with an orientation towards

profit-making **[1]** ;

(b) "commercial considerations" means considerations of price, quality, availability,

marketability, transportation and other terms and conditions of purchase or sale, or other

factors that would normally be taken into account in the commercial decisions of a privately

owned enterprise operating according to market economy principles in the relevant business

or industry;

**1** For greater certainty, "commercial activities" excludes activities undertaken by an enterprise,
which operates on a non-profit basis or which operates on cost recovery basis.

& /en 3

(c) "designate" means to establish or authorise a monopoly, or to expand the scope of a monopoly

to cover an additional good or service;

(d) "designated monopoly" means an entity, including a group of entities or a government

agency, that in a relevant market in the territory of a Party is designated as the sole supplier or

purchaser of a good or service, but does not include an entity that has been granted an

exclusive intellectual property right solely by reason of such grant;

(e) "enterprise granted special rights or privileges" **[1]** means any enterprise, public or private, that

has been granted, in law or in fact, special rights or privileges, by a Party; special rights or

privileges are granted by a Party when it designates or limits to two or more the number of

enterprises authorised to supply a good or a service, taking into account the specific sectorial

regulation under which the granting of the right or privilege has taken place, other than in line

with objective, proportional and non-discriminatory criteria, thereby substantially affecting

the ability of any other enterprise to supply the same good or service in the same geographical

area under substantially equivalent conditions;

(f) "service supplied in the exercise of governmental authority" means a service supplied in the

exercise of governmental authority as defined in subparagraph 3(b) of Article 1 of GATS,

including as defined in its Annex on Financial Services if applicable; and

**1** For greater certainty, the granting of a licence to a limited number of enterprises in allocating
a scarce resource in line with objective, proportional and non-discriminatory criteria is not in
and of itself an exclusive or special privilege.

& /en 4

(g) "state-owned enterprise" means an enterprise owned or controlled by a Party **[1]** .

ARTICLE 22.3

General provisions

Without prejudice to the rights and obligations of a Party under this Chapter, nothing in this Chapter

prevents a Party from establishing or maintaining state-owned enterprises, designating or

maintaining monopolies or granting enterprises special rights or privileges.

ARTICLE 22.4

Non-discriminatory treatment and commercial considerations

1. Each Party shall ensure that each of its state-owned enterprises, enterprises granted special

rights or privileges and designated monopolies, when engaging in commercial activities:

(a) acts in accordance with commercial considerations in its purchase or sale of a good or service,

except to fulfil any terms of its public service mandate that are not inconsistent with

subparagraph (b) or (c);

**1** For the establishment of ownership or control, all relevant legal and factual elements shall be
examined on a case-by-case basis.

& /en 5

(b) in its purchase of a good or service:

(i) accords to a good or service supplied by an enterprise of the other Party treatment no

less favourable than it accords to a like good or a like service supplied by enterprises of

the Party; and

(ii) accords to a good or service supplied by an enterprise that is a covered enterprise as

defined in subparagraph (d) of Article 10.2(1) in the territory of that Party treatment no

less favourable than it accords to a like good or a like service supplied by enterprises in

the relevant market in the territory of that Party that are investments of investors of the

Party; and

(c) in its sale of a good or service:

(i) accords to an enterprise of the other Party treatment no less favourable than it accords to

enterprises of the Party; and

(ii) accords to an enterprise that is a covered enterprise as defined in subparagraph (d) of

Article 10.2(1) in the territory of that Party treatment no less favourable than it accords

to enterprises in the relevant market in the territory of that Party that are investments of

investors of the Party.

& /en 6

2. Paragraph 1 does not preclude state-owned enterprises, enterprises granted special rights or

privileges or designated monopolies from:

(a) purchasing or supplying goods or services on different terms or conditions, including terms or

conditions relating to price, provided that such different terms or conditions are undertaken in

accordance with commercial considerations; or

(b) refusing to purchase or supply goods or services, provided that such refusal is undertaken in

accordance with commercial considerations.

ARTICLE 22.5

Regulatory framework

1. The Parties shall make best use of international standards, as applicable, including the OECD

Guidelines on Corporate Governance of State-Owned Enterprises, as appropriate.

2. Each Party shall ensure that any regulatory body or any other body exercising a regulatory

function that it establishes or maintains:

(a) is independent from, and not accountable to, any of the enterprises that it regulates, in order to

ensure the effectiveness of the regulatory function; and

& /en 7

(b) acts, in like circumstances, impartially **[1]** in respect of all enterprises that it regulates, including

state-owned enterprises, enterprises granted special rights or privileges and designated

monopolies. **[2]**

3. Each Party shall apply its laws and regulations to state-owned enterprises, enterprises granted

special rights or privileges and designated monopolies in a consistent and non-discriminatory

manner.

ARTICLE 22.6

Transparency

1. A Party ("the requesting Party") which has reason to believe that its interests under this

Chapter are being adversely affected by the commercial activities of a state-owned enterprise, an

enterprise granted special rights or privileges or a designated monopoly of the other Party may

request that other Party ("the requested Party") to supply in writing information on the commercial

activities of that entity related to the implementation of this Chapter.

**1** For greater certainty, the impartiality with which the regulatory body exercises its regulatory
functions is to be assessed by reference to a general pattern or practice of that regulatory
body.
**2** For greater certainty, for those sectors in which the Parties have agreed to specific obligations
relating to the regulatory body in other Chapters of this Agreement, the relevant provisions in
those other Chapters shall prevail.

& /en 8

2. The requesting Party shall include, in a request pursuant to paragraph 1, an explanation as to

how that Party believes that the activities of the entity may be affecting the interests of that Party

under this Chapter and shall specify which of the information listed in paragraph 3 it requests.

3. The requested Party shall provide the following information, as specified in accordance with

paragraph 1:

(a) the ownership and the voting structures of the entity, indicating the percentage of shares that

the Party, its state-owned enterprises, enterprises granted special rights or privileges or

designated monopolies cumulatively own, and the percentage of voting rights that they

cumulatively hold, in the entity;

(b) a description of any special shares or special voting or other rights that the Party, its state

owned enterprises, enterprises granted special rights or privileges or designated monopolies

hold, if such rights are different from those attached to the general common shares of the

entity;

(c) the organisational structure of the entity and the composition of its board of directors or of an

equivalent body;

& /en 9

(d) a description of which government departments or public bodies regulate or monitor the

entity; a description of the reporting requirements imposed on it by those departments or

public bodies; and the rights and practices of those government or any public bodies in respect

of the appointment, dismissal or remuneration of senior executives and members of its board

of directors or any other equivalent management body;

(e) the annual revenue of the entity and total assets over the most recent three-year period for

which information is available;

(f) any exemptions, immunities and related measures from which the entity benefits under the

laws and regulations of the requested Party; and

(g) any additional information regarding the entity that is publicly available, including annual

financial reports and third party audits.

4. Paragraphs 1, 2 and 3 do not require any Party to disclose confidential information the

disclosure of which would be inconsistent with its laws and regulations, impede law enforcement,

or otherwise be contrary to the public interest, or would prejudice the legitimate commercial

interests of particular enterprises.

5. If the requested information is not available to the requested Party, that Party shall provide the

requesting Party with the reasons therefor, in writing.

& /en 10

ARTICLE 22.7

Party-specific Annex

1. Article 22.4 does not apply in respect of the non-conforming activities of state-owned

enterprises or designated monopolies that a Party lists in its schedule in Annex 22 in accordance

with the terms of the schedule of the Party.

2. Upon request of either Party, the Trade Council may adopt a decision to amend Annex 22

pursuant to Article 33.1(6) and shall in any event consider amendments to Annex 22 within five

years of the date of entry into force of this Agreement.

& /en 11

CHAPTER 23

COMPETITION POLICY

ARTICLE 23.1

Principles

The Parties recognise the importance of free and undistorted competition in trade and investment.

The Parties acknowledge that anti-competitive practices have the potential to distort the proper

functioning of markets and undermine the benefits of trade liberalisation.

& /en 12

ARTICLE 23.2

Regulatory framework

1. Each Party shall maintain or adopt competition law which applies to all sectors of the

economy **[1]** and addresses the following practices in an effective manner:

(a) agreements between enterprises, decisions by associations of enterprises and concerted

practices which have as their object or effect the prevention, restriction or distortion of

competition;

(b) abuses by one or more enterprises of a dominant position; and

(c) mergers between enterprises which significantly impede effective competition, in particular as

a result of the creation or strengthening of a dominant position.

2. Each Party shall ensure that all enterprises, private or public, are subject to the competition

law referred to in paragraph 1.

**1** For greater certainty, competition law in the European Union apply to the agricultural sector
in accordance with Regulation (EU) No1308/2013 of the European Parliament and of the
Council of 17 December 2013 establishing a common organisation of the markets in
agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79,
(EC) No 1037/2001 and (EC) No 1234/2007 ( OJ EU L 347, 20.12.2013, p. 671).

& /en 13

3. The application of the competition law of each Party should not obstruct the performance, in

law or in fact, of any particular task of public interest assigned to the enterprises concerned.

Exemptions from the competition law of a Party should be limited to tasks of public interest, limited

to what is strictly necessary to achieve the desired public policy objective, and transparent.

ARTICLE 23.3

Implementation

1. Each Party shall maintain a functionally independent authority responsible for, and

appropriately equipped with the powers and resources necessary for the full application and the

effective enforcement of, the competition law referred to in Article 23.2.

2. Each Party shall apply its competition law in a transparent and non-discriminatory manner,

respecting the principles of procedural fairness and right of defence of the enterprises concerned,

irrespective of their nationality or ownership.

ARTICLE 23.4

Cooperation

1. The Parties acknowledge that it is in their common interest to promote cooperation on matters

related to their competition policy and the enforcement thereof.

& /en 14

2. To facilitate cooperation, competition authorities of the Parties may exchange information,

subject to the confidentiality rules provided for in their respective laws and regulations.

3. The competition authorities of the Parties shall endeavour to coordinate, to the extent possible

and if appropriate, their enforcement activities in the same or related conduct or cases.

ARTICLE 23.5

Consultations

1. To foster mutual understanding between the Parties **[1]**, or to address specific matters on the

interpretation or application of this Chapter, the Parties shall, upon request of either Party, promptly

enter into consultations on any matter concerning the interpretation or application of this Chapter.

The Party requesting consultations shall indicate, if relevant, how the matter affects trade or

investment between the Parties.

2. To facilitate the consultations referred to in paragraph 1, each Party shall endeavour to

provide relevant non-confidential information to the other Party.

**1** For the European Union, the interlocutor is DG Competition of the European Commission.

& /en 15

ARTICLE 23.6

Non-application of dispute settlement

Chapter 31 does not apply to this Chapter.

CHAPTER 24

SUBSIDIES

ARTICLE 24.1

Principles

The Parties recognise that subsidies may be granted if they are necessary to achieve public policy

objectives. The Parties acknowledge, however, that certain subsidies have the potential to distort the

proper functioning of markets and undermine the benefits of trade liberalisation and competition.

Therefore, in principle, a Party shall not grant subsidies if they negatively affect, or are likely to

negatively affect, trade or competition between the Parties.

& /en 16

ARTICLE 24.2

Definition and scope

1. For the purposes of this Chapter, a "subsidy" means a measure which fulfils the conditions set

out in Article 1.1 of the SCM Agreement, irrespective of whether it is granted to an enterprise

supplying goods or to an enterprise supplying services. **[1]**

2. This Chapter applies to subsidies which are specific in accordance with Article 2 of the SCM

Agreement.

3. This Chapter applies to subsidies to any enterprise, including private and public enterprises.

4. Each Party shall ensure that subsidies to enterprises entrusted with the operation of services of

general economic interest are subject to the rules set out in this Chapter, in so far as the application

of those rules does not obstruct the performance, in law or in fact, of the particular tasks that are

assigned to those enterprises. Assigned tasks shall be transparent, and any limitation to or deviation

from the application of the rules set out in this Chapter shall not go beyond what is necessary to

perform the assigned tasks.

**1** For greater certainty, this Article does not prejudice the outcome of future discussions in the
WTO or related plurilateral fora on the definition of subsidies for services.

& /en 17

5. Article 24.5 does not apply to subsidies related to trade in goods covered by Annex 1 of the

Agreement on Agriculture.

6. Articles 24.5 and 24.6 do not apply to the audio-visual sector.

7. Articles 24.5 and 24.6 do not apply to subsidies granted to assist indigenous people and their

communities in their economic development **[1]** . Such subsidies shall be targeted, proportional and

transparent.

8. Articles 24.5 and 24.6 do not apply to subsidies granted to remedy the damage caused by

natural disasters or other exceptional occurrences.

9. Article 24.5 does not apply to subsidies that are granted on a temporary basis to respond to an

economic emergency **[2]** . Those subsidies shall be proportional and targeted in order to remedy that

emergency.

**1** For the purposes of this paragraph, indigenous people and their communities shall be
understood as those defined in the laws of each Party. For the European Union, its laws
encompass both the laws of the European Union and the laws of each of its Member States.
**2** "Economic emergency" shall be understood as an economic event that causes a serious
disturbance in the economy of a Party. For the European Union, "the economy of a Party"
shall be understood as the economy of the European Union or of one or more of its Member
States.

& /en 18

10. The Trade Council may adopt a decision amending the definition of "subsidy" in paragraph 1

of this Article insofar as it relates to enterprises supplying services, with a view to incorporating the

outcome of future discussions in the WTO or related plurilateral fora on that matter, pursuant to

subparagraph (a) of Article 33.1(6).

ARTICLE 24.3

Relation to the WTO Agreement

This Chapter applies without prejudice to the rights and obligations of a Party under Article XV of

GATS, Article XVI of GATT 1994, the SCM Agreement and the Agreement on Agriculture.

ARTICLE 24.4

Transparency

1. With respect to a subsidy granted or maintained within its territory, each Party shall make

available the following information:

(a) the legal basis and purpose of the subsidy;

& /en 19

(b) the form of the subsidy;

(c) the amount of the subsidy or the amount budgeted for the subsidy; and

(d) if possible, the name of the recipient of the subsidy.

2. A Party shall meet the requirements set out in paragraph 1 of this Article through:

(a) notification pursuant to Article 25 of the SCM Agreement, provided that the notification

contains all the information referred to in paragraph 1 of this Article and is provided at least

every two years;

(b) notification pursuant to Article 18 of the Agreement on Agriculture; or

(c) publication by the Party or on its behalf on a publicly accessible website, by 31 December of

the calendar year following the year in which the subsidy was granted or maintained.

& /en 20

ARTICLE 24.5

Consultations

1. If a Party considers that a subsidy granted by the other Party has or could have negative

effects on its trade interests or on competition, that Party ("the requesting Party") may express its

concern in writing to the other Party ("the responding Party") and request consultations on the

matter. Such a request shall include an explanation of how the subsidy has or could have a negative

effect on the trade interests of the requesting Party or on competition.

2. For the purposes of paragraph 1, the requesting Party may request from the responding Party

the following information about the subsidy:

(a) the legal basis and policy objective or purpose of the subsidy;

(b) the form of the subsidy;

(c) the dates and duration of the subsidy and any other time limits attached to it;

(d) the eligibility requirements of the subsidy;

(e) the total amount or the annual amount budgeted for the subsidy;

& /en 21

(f) if possible, the name of the recipient of the subsidy; and

(g) any other information permitting an assessment of the negative effect of the subsidy.

3. The responding Party shall provide the information requested pursuant to paragraph 2 in

writing no later than 60 days after the date of receipt of the request.

4. If the responding Party does not provide, in whole or in part, the information requested

pursuant to paragraphs 2 and 3, the responding Party shall explain the reasons therefore in writing.

5. If, after having received the requested information and following the consultations, the

requesting Party considers that the subsidy concerned has or may have a significant negative effect

on its trade interests or competition, the responding Party shall use its best endeavours to eliminate

or minimise those effects.

& /en 22

ARTICLE 24.6

Subsidies subject to conditions

1. When granting the following subsidies, each Party shall apply conditions as follows:

(a) in respect of subsidies whereby a government, directly or indirectly, is responsible for

guaranteeing debts or liabilities of certain enterprises, that the coverage of the debts and

liabilities is not unlimited with regards to the amount of those debts and liabilities or the

duration of the government's responsibility is not unlimited; and

(b) in respect of subsidies to insolvent or ailing enterprises (such as loans and guarantees, cash

grants, capital injections, provision of assets below market prices and tax exemptions) with a

duration of more than one year, that a credible restructuring plan has been prepared which is

based on realistic assumptions with a view to ensuring the return of the insolvent or ailing

enterprises, within a reasonable time, to long-term viability and with the enterprise, with the

exception of small and medium-sized enterprises, contributing itself to the costs of

restructuring.

2. Subparagraph (b) of paragraph 1 does not apply to subsidies granted to enterprises as

temporary liquidity support in the form of loan guarantees or loans limited to the amount needed

merely to keep an ailing company in business for the time necessary to adopt a restructuring or

liquidation plan.

& /en 23

3. This Article applies only to subsidies that negatively affect trade and competition of the other

Party or are likely to do so.

4. This Article does not apply to subsidies:

(a) which are granted to ensure the orderly market exit of a company; or

(b) the cumulative amounts or budgets of which are less than 170 000 SDR per enterprise over a

period of three consecutive years.

ARTICLE 24.7

Use of subsidies

Each Party shall ensure that enterprises use subsidies only for the explicitly defined policy objective

for which those subsidies have been granted **[1]** .

**1** For greater certainty, when a Party has set up the appropriate legislative frameworks and
administrative procedures to this effect, the obligation is considered to be fulfilled.

& /en 24

ARTICLE 24.8

Non-application of dispute settlement

Chapter 31 does not apply to Article 24.5(5).

ARTICLE 24.9

Confidentiality

1. When exchanging information under this Chapter the Parties shall take into account the

limitations imposed by their respective law concerning professional and business secrecy and shall

ensure the protection of business secrets and other confidential information.

2. If a Party communicates information under this Chapter, the receiving Party shall maintain the

confidentiality of that information.

& /en 25

CHAPTER 25

INTELLECTUAL PROPERTY

SECTION A

GENERAL PROVISIONS

ARTICLE 25.1

Objectives

1. The objectives of this Chapter are to:

(a) facilitate the production and commercialisation of innovative and creative goods and services

between the Parties, contributing to a more sustainable and inclusive economy for the Parties;

(b) facilitate and govern trade between the Parties, as well as reduce distortions and impediments

to such trade; and

& /en 26

(c) achieve an adequate and effective level of protection and enforcement of intellectual property

rights.

2. The objectives set out in Article 7 of the TRIPS Agreement apply to this Chapter, _mutatis_

_mutandis_ .

ARTICLE 25.2

Scope

1. Each Party shall comply with their commitments under the international treaties in the field of

intellectual property to which it is a party, including the TRIPS Agreement.

2. This Chapter shall complement and further specify the rights and obligations of each Party

under the TRIPS Agreement and other international treaties in the field of intellectual property.

3. Nothing in this Chapter prevents a Party from applying provisions of its law introducing

higher standards for the protection and enforcement of intellectual property rights, provided that

those provisions are compatible with this Chapter. Each Party shall be free to determine the

appropriate method of implementing this Chapter within its own legal system and practice.

& /en 27

ARTICLE 25.3

Principles

1. The principles set out in Article 8 of the TRIPS Agreement apply to this Chapter, _mutatis_

_mutandis_ .

2. Taking into consideration the underlying public policy objectives of domestic systems, the

Parties recognise the need to:

(a) promote innovation and creativity; and

(b) facilitate the diffusion of information, knowledge, technology, culture and the arts;

through their respective intellectual property systems, while respecting the principles of

transparency, and taking into account the interests of relevant stakeholders, including right holders,

users and the general public.

& /en 28

ARTICLE 25.4

Definitions

For the purposes of this Chapter and Annexes 25-A, 25-B and 25-C:

(a) "Berne Convention" means the Berne Convention for the Protection of Literary and Artistic

Works, done at Berne on 9 September 1886, and as amended on 28 September 1979;

(b) "intellectual property" means all categories of intellectual property rights that are covered by

Sub-Sections 1 to 7 of Section B of this Chapter or Sections 1 to 7 of Part II of the TRIPS

Agreement; the protection of intellectual property includes protection against unfair

competition pursuant to Article 10 _bis_ of the Paris Convention;

(b) "Paris Convention" means the Paris Convention for the Protection of Industrial Property,

of 20 March 1883, as last revised at Stockholm on 14 July 1967 and as amended

on 28 September 1979;

(c) "Rome Convention" means the International Convention for the Protection of Performers,

Producers of Phonograms and Broadcasting Organisations, done at Rome

on 26 October 1961; and

& /en 29

(d) "WIPO" means the World Intellectual Property Organization.

ARTICLE 25.5

National treatment

1. In respect of all categories of intellectual property rights covered by this Chapter, each Party

shall accord to nationals of the other Party treatment no less favourable than it accords to its own

nationals with regard to the protection **[1]** of intellectual property rights, subject to the exceptions

already provided in, respectively, the Paris Convention, the Berne Convention, the Rome

Convention or the Treaty on Intellectual Property in Respect of Integrated Circuits, done at

Washington on 26 May 1989 and WIPO Performances and Phonograms Treaty ("WPPT"), done at

Geneva on 20 December 1996. In respect of performers, producers of phonograms and broadcasting

organisations, that obligation only applies in respect of the rights provided for under this Chapter.

**1** For the purposes of this paragraph, "protection" includes matters affecting the availability,
acquisition, scope, maintenance, and enforcement of intellectual property rights as well as
matters affecting the use of intellectual property rights specifically addressed in this Chapter.
Further, for the purposes of this paragraph, "protection" also includes measures to prevent the
circumvention of effective technological measures and measures concerning rights
management information.

& /en 30

2. A Party may avail itself of the exceptions permitted under paragraph 1 in relation to its

judicial and administrative procedures, including requiring a national of the other Party to designate

an address for service of process in its territory, or to appoint an agent in its territory, provided that

such exception is:

(a) necessary to secure compliance with the laws or regulations of the Party that are not

inconsistent with this Chapter; and

(b) not applied in a manner that would constitute a disguised restriction on trade.

3. Paragraph 1 does not apply to procedures provided in multilateral agreements concluded

under the auspices of WIPO relating to the acquisition or maintenance of intellectual property

rights.

ARTICLE 25.6

Intellectual property and public health

1. The Parties recognise the importance of the Declaration on the TRIPS Agreement and Public

Health, adopted at Doha on 14 November 2001 by the Ministerial Conference of the WTO

(hereinafter referred to as the "Doha Declaration"). In interpreting and implementing the rights and

obligations under this Chapter, the Parties shall ensure consistency with the Doha Declaration.

& /en 31

2. Each Party shall implement Article 31 _bis_ of the TRIPS Agreement, as well as the Annex and

the Appendix to the Annex thereto, which entered into force on 23 January 2017.

ARTICLE 25.7

Exhaustion

Nothing in this Agreement prevents a Party from determining whether or under what conditions the

exhaustion of intellectual property rights applies under its legal system.

& /en 32

SECTION B

STANDARDS CONCERNING INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1

COPYRIGHT AND RELATED RIGHTS

ARTICLE 25.8

International agreements

1. Each Party affirms their commitment to and shall comply with:

(a) the Berne Convention;

(b) the Rome Convention;

(c) the WIPO Copyright Treaty ("WCT"), done at Geneva on 20 December 1996;

& /en 33

(d) WPPT; and

(e) the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who are Blind,

Visually Impaired, or Otherwise Print Disabled, done in Marrakesh on 27 June 2013.

2. Each Party shall make all reasonable efforts to ratify or accede to the Beijing Treaty on

Audiovisual Performances, adopted in Beijing on 24 June 2012.

ARTICLE 25.9

Authors

Each Party shall provide authors with the exclusive right to authorise or prohibit:

(a) direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part, of their works;

(b) any form of distribution to the public by sale or otherwise of the original of their works or

copies thereof;

& /en 34

(c) any communication to the public of their works by wire or wireless means, including the

making available to the public of their works in such a way that members of the public may

access them from a place and at a time individually chosen by them; and

(d) the commercial rental to the public of originals or copies of their computer programs or

cinematographic works.

ARTICLE 25.10

Performers

Each Party shall provide performers with the exclusive right to authorise or prohibit:

(a) the fixation **[1]** of their performances;

(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part, of fixations of their performances;

(c) the distribution to the public, by sale or otherwise, of the fixations of their performances;

**1** "Fixation" means the embodiment of sounds, or of the representations thereof, from which
they can be perceived, reproduced or communicated through a device.

& /en 35

(d) the making available to the public of fixations of their performances, by wire or wireless

means, in such a way that members of the public may access them from a place and at a time

individually chosen by them; and

(e) the broadcasting by wireless means and the communication to the public of their

performances, except where the performance is itself already a broadcast performance or is

made from a fixation.

ARTICLE 25.11

Producers of phonograms

Each Party shall provide phonogram producers with the exclusive right to authorise or prohibit:

(a) the direct or indirect, temporary or permanent, reproduction by any means and in any form, in

whole or in part, of their phonograms;

(b) the distribution to the public, by sale or other transfer of ownership, of their phonograms,

including copies thereof;

& /en 36

(c) the making available to the public of their phonograms, by wire or wireless means, in such a

way that members of the public may access them from a place and at a time individually

chosen by them; and

(d) the commercial rental of their phonograms to the public.

ARTICLE 25.12

Broadcasting organisations

Each Party shall provide broadcasting organisations with the exclusive right to authorise or prohibit:

(a) the fixation of their broadcasts transmitted by wireless means;

(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part, of fixations of their broadcasts transmitted by wireless means; and

(c) the rebroadcasting of their broadcasts by wireless means, as well as the communication to the

public **[1]** of their broadcasts if such communication is made in places accessible to the public

against payment of an entrance fee.

**1** For greater certainty, nothing in this paragraph prevents a Party from determining the
conditions under which this right may be exercised, in accordance with Article 13(d) of the
Rome Convention.

& /en 37

ARTICLE 25.13

Broadcasting and communication to the public

of phonograms published for commercial purposes **[1]**

1. Each Party shall provide a right in order to ensure that a single equitable remuneration is paid

by the user to the performers and producers of phonograms, if a phonogram published for

commercial purposes, or a reproduction of such phonogram, is used for broadcasting or

communication to the public **[2]** .

2. Each Party shall ensure that the single equitable remuneration referred to in paragraph 1 is

shared between the relevant performers and phonogram producers. Each Party may enact legislation

that, in the absence of an agreement between performers and producers of phonograms, sets the

terms according to which performers and producers of phonograms shall share such single equitable

remuneration.

**1** Each Party may grant more extensive rights, as regards the broadcasting and communication
to the public of phonograms published for commercial purposes, to performers and producers
of phonograms.
**2** For the purposes of this Article, "communication to the public" does not include the making
available to the public of a phonogram, by wire or wireless means, in such a way that
members of the public may access the phonogram from a place and at a time individually
chosen by them.

& /en 38

ARTICLE 25.14

Term of protection

1. The rights of an author of a work shall run for the life of the author and for not less than

70 years after the death of the author, irrespective of the date when the work is lawfully made

available to the public **[1]** .

2. In the case of a work of joint authorship, the term of protection referred to in paragraph 1 shall

be calculated from the death of the last surviving author.

3. In the case of anonymous or pseudonymous works, the term of protection shall run for not

less than 70 years after the work is lawfully made available to the public. However, if the

pseudonym adopted by the author leaves no doubt as to the identity of the author, or if the author

discloses their identity during the period referred to in the first sentence, the term of protection

applicable shall be that laid down in paragraph 1.

4. The term of protection of cinematographic or audiovisual works shall expire not less than

70 years after the date of death of the last surviving author. It shall be a matter for the laws and

regulations of the Parties to determine the persons that are to be considered authors of a

cinematographic or audiovisual work.

**1** If a Party provides a special term of protection in cases in which a juridical person is
designated as the right holder, the term of protection shall run for not less than 70 years after
the work is lawfully made available to the public.

& /en 39

5. The rights of broadcasting organisations shall expire 50 years after the date of the first

transmission of a broadcast.

6. The rights of performers shall expire not less than 50 years after the date of the fixation of the

performance; however:

(a) if a fixation of the performance is lawfully published or, where provided by a Party, lawfully

communicated to the public within the period of 50 years referred to in this paragraph, the

term of protection shall be calculated from the date of the first such publication or, where

provided by a Party, the first such communication to the public. Where a Party provides for

both possibilities, the term of protection shall be calculated from whichever event occurs

earlier; and

(b) if a fixation of the performance in a phonogram is lawfully published or, where provided by a

Party, lawfully communicated to the public within the period of 50 years referred to in this

paragraph, the term of protection shall expire not less than 70 years after the date of the first

such publication or, where provided for by a Party, the first such communication to the public.

Where a Party provides for both possibilities, the term of protection shall be calculated from

whichever event occurs earlier.

& /en 40

7. The rights of producers of phonograms shall expire not less than 50 years after the fixation is

made. However, if the phonogram is lawfully published or, where provided for by a Party, lawfully

communicated to the public within this period, such rights shall expire not less than 70 years after

the date of the first such publication or, where provided for by a Party, the first such communication

to the public. The Parties may adopt or maintain effective measures to ensure that the profit

generated during the 20 years of protection beyond 50 years is shared fairly between the performers

and the producers of phonograms.

ARTICLE 25.15

Resale right

1. Each Party shall provide, for the benefit of the author of an original work of graphic or plastic

art, a "resale right", to be defined as an inalienable right, which cannot be waived, even in advance,

to receive a royalty based on the sale price obtained, for any resale of the work, subsequent to the

first transfer of the work by the author **[1]** .

2. The resale right referred to in paragraph 1 shall apply to all acts of resale involving as sellers,

buyers or intermediaries art market professionals, such as salesrooms, art galleries and, in general,

any dealers in works of art.

**1** Notwithstanding this Article, for Chile the first paragraph of Article 36 of Law No. 17.366 of
28 August 1970, as amended by Law No. 21.045 of 13 October 2017 may continue to apply
with respect to the calculation of royalties.

& /en 41

3. Each Party may provide that the resale right referred to in paragraph 1 shall not apply to acts

of resale where the seller has acquired the work directly from the author less than three years before

that resale and where the resale price does not exceed a certain minimum amount.

ARTICLE 25.16

Collective management of rights

1. The Parties shall promote cooperation between their respective collective management

organisations for the purposes of fostering the availability of works and other protected subject

matter in the territories of the Parties and the transfer of rights revenue between their respective

collective management organisations for the use of such works or other protected subject matter.

2. The Parties shall promote transparency of collective management organisations, in particular

regarding rights revenue they collect, deductions they apply to rights revenue they collect, the use

of the rights revenue collected, the distribution policy and their repertoire.

3. Each Party shall ensure that collective management organisations established in its territory

that represent another collective management organisation established in the territory of the other

Party through a representation agreement, are encouraged to accurately, regularly and diligently pay

amounts owed to the represented collective management organisation as well as to provide the

represented collective management organisation with the information on the amount of rights

revenue collected on its behalf and any deductions made to that rights revenue.

& /en 42

ARTICLE 25.17

Limitations and exceptions

Each Party shall provide for limitations or exceptions to the rights set out in Articles 25.9 to 25.13

only in certain special cases which do not conflict with a normal exploitation of the work or other

subject matter and do not unreasonably prejudice the legitimate interests of the right holders.

ARTICLE 25.18

Protection of technological measures

1. Each Party shall provide adequate legal protection against the circumvention of any effective

technological measure, which the person concerned carries out in the knowledge, or with reasonable

grounds to know, that the person is pursuing that objective.

2. Each Party shall provide adequate legal protection against the manufacture, import,

distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of

devices, products or components or the provision of services which:

(a) are promoted, advertised or marketed for the purpose of circumvention of any effective

technological measures;

& /en 43

(b) have only a limited commercially significant purpose or use other than to circumvent any

effective technological measures; or

(c) are primarily designed, produced, adapted or performed for the purpose of enabling or

facilitating the circumvention of any effective technological measures.

3. For the purposes of this Sub-Section, "technological measure" means any technology, device

or component that, in the normal course of its operation, is designed to prevent or restrict acts, in

respect of works or other subject matter **[1]**, which are not authorised by the right holder of any

copyright or related right as provided for by the law of a Party. Technological measures shall be

deemed effective if the use of a protected work or other subject matter is controlled by the right

holders through the application of an access control or protection process, such as encryption,

scrambling or other transformation of the work or other subject matter or a copy control

mechanism, which achieves the protection objective.

4. Notwithstanding the legal protection provided for in paragraph 1 of this Article, in the

absence of voluntary measures taken by the right holders, each Party may take appropriate

measures, as necessary, to ensure that the adequate legal protection against the circumvention of

effective technological measures provided for in accordance with this Article does not prevent

beneficiaries of exceptions or limitations provided for in accordance with Article 25.17 from

enjoying such exceptions or limitations.

**1** For greater certainty, "works or other subject matter" in this sentence does not apply to works
or other subject matter for which the term of protection has expired.

& /en 44

ARTICLE 25.19

Obligations concerning rights management information

1. Each Party shall provide adequate legal protection against any person knowingly performing,

without authority, any of the following acts, if such person knows, or has reasonable grounds to

know, that by so doing that person is inducing, enabling, facilitating or concealing an infringement

of any copyright or any related rights as provided for in the laws of that Party:

(a) the removal or alteration of any electronic rights-management information; and

(b) the distribution, importation for distribution, broadcasting, communication or making

available to the public of works or other subject matter protected under this Sub-Section from

which electronic rights-management information has been removed or altered without

authority.

2. For the purposes of this Article, "rights-management information" means any information

provided by right holders which identifies the work or other subject matter referred to in this

Article, the author or any other right holder, or information about the terms and conditions of use of

the work or other subject matter, and any numbers or codes that represent such information.

3. Paragraph 2 shall apply if any of those items of information is associated with a copy of, or

appears in connection with the communication to the public of, a work or other subject matter

referred to in this Article.

& /en 45

SUB-SECTION 2

TRADEMARKS

ARTICLE 25.20

International agreements

Each Party shall:

(a) comply with the Protocol Relating to the Madrid Agreement Concerning the International

Registration of Marks, adopted at Madrid on 27 June 1989, as amended

on 12 November 2007;

(b) comply with the Trademark Law Treaty, done at Geneva on 27 October 1994, and with the

Nice Agreement Concerning the International Classification of Goods and Services for the

Purposes of the Registration of Marks, of 15 June 1957, as amended on 28 September 1979;

and

(c) make all reasonable efforts to accede to the Singapore Treaty on the Law of Trademarks, done

at Singapore on 27 March 2006.

& /en 46

ARTICLE 25.21

Rights conferred by a trademark

Each Party shall provide that the owner of a registered trademark has the exclusive right to prevent

third parties, that do not have the owner's consent, from using in the course of trade identical or

similar signs to those in respect of which the trademark is registered, where such use would result in

a likelihood of confusion. In the case of the use of an identical sign for identical goods or services, a

likelihood of confusion shall be presumed.

ARTICLE 25.22

Registration procedure

1. Each Party shall provide for a system for the registration of trademarks in which each final

negative decision taken by the relevant trademark administration, including a partial refusal of

registration, shall be duly reasoned and communicated in writing to the relevant party.

2. Each Party shall provide for the possibility for third parties to oppose trademark applications

or, where appropriate under its law, trademark registrations. Such opposition proceedings shall be

adversarial.

& /en 47

3. Each Party shall provide for a publicly available electronic database of trademark applications

and trademark registrations.

ARTICLE 25.23

Well-known trademarks

For the purposes of giving effect to protection of well-known trademarks, as referred to in

Article 6 _bis_ of the Paris Convention and Article 16(2) and (3) of the TRIPS Agreement, the Parties

affirm the importance of the Joint Recommendation Concerning Provisions on the Protection of

Well-Known Marks, adopted by the Assembly of the Paris Union for the Protection of Industrial

Property and the General Assembly of WIPO at the Thirty Fourth Series of Meetings of the

Assemblies of the Member States of WIPO on 20 to 29 September 1999.

ARTICLE 25.24

Exceptions to the rights conferred by a trademark

1. Each Party:

(a) shall provide for the fair use of descriptive terms as a limited exception to the rights conferred

by trademarks; and

& /en 48

(b) may provide for other limited exceptions.

2. Paragraph 1 shall apply provided that the exceptions take account of the legitimate interests of

the owners of the trademarks and of third parties.

3. The trademark shall not entitle the proprietor to prohibit a third party from using the

following, in the course of trade:

(a) their own name or address;

(b) indications concerning the kind, quality, quantity, intended purpose, value, geographical

origin, the time of production of goods or of rendering of the service, or other characteristics

of goods or services; or

(c) the trademark, where it is necessary to indicate the intended purpose of a good or service, in

particular as accessories or spare parts.

4. Paragraph 2 shall apply where the use made by the third party is in accordance with honest

practices in industrial or commercial matters **[1]** .

**1** Alternatively, a Party may make such use subject to not being misleading or creating
confusion among the relevant part of the public.

& /en 49

5. A Party may provide that the trademark shall not entitle the proprietor to prohibit a third party

from using, in the course of trade, an earlier right which only applies in a particular locality, if that

right is recognised by the law of that Party and within the limits of the territory in which it is

recognised.

ARTICLE 25.25

Grounds for revocation

1. Each Party shall provide that a trademark shall be liable to revocation if, within a continuous

period of five years, it has not been put to genuine use in the relevant territory in connection with

the goods or services in respect of which it is registered, and there are no proper reasons for

non-use. However, a Party may provide that no person may claim that the proprietor's rights in a

trademark should be revoked where, during the interval between expiry of the five-year period and

filing of the application for revocation, genuine use of the trademark has started or resumed. The

commencement or resumption of use within a period of three months preceding the filing of the

application for revocation, which began at the earliest on expiry of the continuous period of five

years of non-use, shall, however, be disregarded if preparations for the commencement or

resumption occurred only after the proprietor becomes aware that the application for revocation

may be filed.

& /en 50

2. A trademark shall also be liable to revocation if, after the date on which it was registered as a

consequence of acts or inactivity of the proprietor, it has become the common name in the trade for

a good or service in respect of which it is registered. **[1]**

ARTICLE 25.26

Bad faith applications

A trademark shall be liable to be declared invalid where the application for registration of the

trademark was made in bad faith by the applicant. Each Party may also provide that such a

trademark shall not be registered.

**1** A trademark may also be liable to revocation if, after the date on which it was registered in
consequence of the use made of it by the proprietor of the trademark or with his consent in
respect of the goods or services for which it is registered, it is liable to mislead the public,
particularly as to the nature, quality or geographical origin of those goods or services.

& /en 51

SUB-SECTION 3

DESIGNS **[1]**

ARTICLE 25.27

International agreements

Each Party shall make all reasonable efforts to accede to the Geneva Act to the Hague Agreement

Concerning the International Registration of Industrial Designs, adopted at Geneva on 2 July 1999.

ARTICLE 25.28

Protection of registered designs **[2]**

1. Each Party shall provide for the protection of independently created designs that are new or

original. **[3]** That protection shall be provided by registration and shall confer an exclusive right upon

its holder in accordance with the provisions of this Article.

**1** References in this Chapter to designs are those to registered industrial designs.
**2** The Union also grants protection to the unregistered design when it meets the requirements of
Council Regulation (EC) No 6/2002 of 12 December 2001 on Community designs (OJ EU L
3, 5.1.2002, p.1).
**3** A Party may provide in its laws that individual character of designs can also be required. The
European Union considers that a design has individual character if the overall impression it
produces on the informed user differs from the overall impression produced on such a user by
any design which has been made available to the public.

& /en 52

2. The holder of a registered design shall have the right to prevent third parties not having the

holder's consent at least from making, selling, importing, exporting the product bearing and

embodying the protected design or using articles bearing or embodying the protected design where

such acts are undertaken for commercial purposes, unduly prejudice the normal exploitation of the

design, or are not compatible with fair trade practice.

3. A design applied to or incorporated in a product which constitutes a component part of a

complex product shall only be considered to be new or original:

(a) if the component part, once it has been incorporated into the complex product, remains visible

during normal use of the complex product, and

(b) to the extent that visible features of the component part referred to in subparagraph (a) fulfil

in themselves the requirements of novelty or originality.

4. For the purposes of subparagraph (a) of paragraph 3, "normal use" means the use by the end

user, excluding maintenance, servicing or repair work.

& /en 53

ARTICLE 25.29

Duration of protection

The duration of protection available shall amount to at least 15 years from the date of filing of the

application.

ARTICLE 25.30

Exceptions and exclusions

1. Each Party may provide for limited exceptions to the protection of designs, provided that such

exceptions do not unreasonably conflict with the normal exploitation of protected designs and do

not unreasonably prejudice the legitimate interests of the holder of the protected design, taking

account of the legitimate interests of third parties.

2. Design protection shall not extend to designs that are dictated essentially by technical or

functional considerations.

& /en 54

3. A design shall not subsist in features of appearance of a product which must necessarily be

reproduced in their exact form and dimensions in order to permit the product in which the design is

incorporated or to which it is applied to be mechanically connected to or placed in, around or

against another product so that either product may perform its own function.

4. By way of derogation from paragraph 3, a design may subsist in a design, which has the

purpose of allowing the multiple assembly or connection of mutually interchangeable products

within a modular system.

ARTICLE 25.31

Relationship to copyright

A design shall also be eligible for protection under the copyright law of a Party as from the date on

which the design was created or fixed in any form. Each Party shall determine the extent to which,

and the conditions under which, such a protection is conferred, including the level of originality

required.

& /en 55

SUB-SECTION 4

GEOGRAPHICAL INDICATIONS

ARTICLE 25.32

Definition and scope

1. For the purposes of this Agreement, "geographical indication" means an indication which

identifies a good as originating in the territory of a Party, or a region or locality in its territory,

where a given quality, reputation or other characteristic of the good is essentially attributable to its

geographical origin.

2. This Sub-Section applies to geographical indications, which identify products listed in

Annex 25-C.

3. The Parties agree to consider, after the entry into force of this Agreement, extend the scope of

geographical indications covered by this Sub-Section to other product types of geographical

indications not covered by paragraph 2, and in particular handicrafts, by taking into account the

legislative developments of the Parties.

& /en 56

4. A Party shall protect geographical indications of the other Party, in accordance with this

Sub-Section, if those geographical indications are protected as such in the country of origin.

ARTICLE 25.33

Listed geographical indications

Each Party, having examined both the legislation of the other Party referred to in Annex 25-A and

the geographical indications of the other Party listed in Annex 25-C, and having completed proper

publicity measures, in accordance with its laws and practices, shall protect the geographical

indications of the other Party listed in Annex 25-C, in accordance with the level of protection laid

down in this Sub-Section.

& /en 57

ARTICLE 25.34

Amendment of the list of geographical indications

1. The Parties agree on the possibility to amend the list of geographical indications referred to in

Article 25.33 pursuant to Article 25.40(1). Any addition to Annex 25-C by a Party shall not exceed

45 geographical indications every three years after the date of entry into force of this Agreement.

The Parties shall add new geographical indications after the completion of the opposition procedure

in accordance with the criteria set out in Annex 25-B and after having examined the geographical

indications, to the satisfaction of both Parties.

2. When the amendment of the geographical indication listed in Annex 25-C concerns a minor

change related to the spelling of a listed geographical indication or the reference to the

denomination of the geographical area to which it is attributable, the procedure referred to in

Article 25.40 (4) applies.

3. A geographical indication pursuant to paragraphs 1 and 2, shall be listed by mutual consent of

the Parties.

& /en 58

ARTICLE 25.35

Scope of protection of geographical indications

1. The geographical indications listed in Annex 25-C, as well as those added pursuant to

Article 25.34, shall be protected against:

(a) any commercial use of the geographical indication, for a product which is the same type of

product and which:

(i) does not originate in the place of origin specified in Annex 25-C for that geographical

indication; or

(ii) does originate in the place of origin specified in Annex 25-C for that geographical

indication, but which was not produced or manufactured in accordance with the product

specification of the protected name, even where the name is accompanied by terms such

as "kind", "type", "style", "imitation", "flavour", or other expressions of the sort;

(b) the use of any means in the designation or presentation of a product that indicates or suggests

that the product in question originates in a geographical area other than the true place of

origin in a manner which bears the risk of misleading the public as to the geographical origin

of the product;

& /en 59

(c) any use which constitutes an act of unfair competition within the meaning of Article 10 _bis_ of

the Paris Convention, including the exploitation of the reputation of a geographical indication

or any false or misleading indication as to the provenance, origin, nature or essential qualities

of the product, on the inner or outer packaging, advertising material, or the documents related

to the goods themselves, and any practice liable to mislead the consumer as to the true origin

of the product.

2. Protected geographical indications shall not become generic in the territories of the Parties.

3. There shall be no obligation under this Sub-section to protect geographical indications which

are not, or cease to be, protected in their territory of origin.

4. A Party shall not preclude the possibility that the protection or recognition of a geographical

indication may be cancelled by the competent authorities in the territory of its origin on the basis

that the protected or recognized term has ceased meeting the conditions upon which the protection

or recognition was originally granted in its territory of origin.

5. Each Party shall notify the other Party if a geographical indication ceases to be protected in its

territory of origin. Such notification shall take place in accordance with procedures laid down in

Article 25.40.

& /en 60

6. Nothing in this Sub-Section shall prejudice the right of any person to use, in the course of

trade, that person's name or the name of that person's predecessor in business, except if such name

is used with the purpose of misleading the public.

7. The protection provided under this Sub-Section shall apply to the translation of the

geographical indications listed in Annex 25-C, if the use of such translation bears the risk to

mislead the public.

8. If a translation of a geographical indication is identical to, or contains, generic or descriptive

terms, including nouns and adjectives, or terms that are customary in common language as the

common name for a product in the territory of a Party, or if a geographical indication is not

identical to, but contains such a term, the provisions of this Sub-Section shall not prejudice the right

of any person to use that term in association with that product.

9. The protection provided for under this Sub-Section does not apply to an individual component

of a multicomponent term that is protected as a geographical indication listed in Appendix 25-C-1,

if the individual component **[1]** is a term in the common language as the common name for the

associated product.

**1** In accordance with Appendix 25-C-1, which contains terms for which protection is not
sought.

& /en 61

10. Nothing in this Sub-Section shall prevent the use, in the territory of a Party, with respect to

any product, of a name of a plant variety or an animal breed. **[1]**

11. For new geographical indications to be added in accordance with Article 25.34, nothing shall

require a Party to protect a geographical indication which is identical to the term that is customary

in common language as the common name for the associated product in the territory of that Party. **[2]**

ARTICLE 25.36

Right of use of geographical indications

1. A name protected under this Sub-section as a geographical indication may be used by any

operator marketing a product which conforms to the corresponding specification.

2. A name protected under this Sub-Section as a geographical indication shall not be subject to

any registration of users, or further charges.

**1** Explanatory notes in Annex 25-C define the plants varieties and animal breeds the use of
which shall not be prevented.
**2** In determining new geographical indications to be added, whether a term is the term
customary in common language as the common name for the relevant good in its territory, a
Party's authorities shall have the authority to take into account how consumers understand the
term in the territory of that Party. Factors relevant to such consumer understanding may
include: (a) whether the term is used to refer to the type of product in question, as indicated by
competent sources such as dictionaries, newspapers and relevant websites; or (b) how the
product referenced by the term is marketed and used in trade in the territory of that Party.

& /en 62

ARTICLE 25.37

Relation between trademarks and geographical indications

1. The Parties shall refuse to register a trademark the use of which would contravene

Article 25.35 and which relates to the same type of product, provided that the application to register

such a trademark is submitted after the date of application for protection of the geographical

indication in the territory of the Party concerned.

2. Trademarks registered in breach of paragraph 1 shall be invalidated, _ex officio_ or at the

request of an interested party, in accordance with the law and practice of the Parties.

3. For geographical indications referred to in Article 25.33, the date of submission of the

application for protection referred to in paragraph 1 and 2 shall be 1 November 2022.

4. For geographical indications added to Annex 25-C in accordance with Article 25.34, the date

of submission of the application for protection shall be the date of the transmission of a request to

the other Party to protect a geographical indication subject to the successful conclusion of the

process to amend the list of protected geographical indications referred to in Article 25.34.

& /en 63

5. The Parties shall protect geographical indications also if a prior trademark exists. Prior

trademarks registered in good faith may be renewed and may be subject to variations that require

the filing of new trademark applications, provided that those variations do not undermine the

protection of geographical indications and that there are no grounds for invalidation of the

trademark under the law of the Parties.

6. For the purposes of paragraph 5 of this Article, a "prior trademark" means a trademark the use

of which contravenes Article 25.35, for which an application for registration has been made or

which has been established by use, if that possibility is provided for by the legislation concerned, in

good faith in the territory of one Party before the date on which the application for protection of the

geographical indication is submitted by the other Party under this Agreement.

ARTICLE 25.38

Enforcement of protection

Each Party shall enforce the protection provided for in Articles 25.35, 25.36 and 25.37 by

administrative action at the request of an interested party. Each Party shall provide, within its law

and practice, for additional administrative and judicial steps to prevent or stop the unlawful use of

protected geographical indications.

& /en 64

ARTICLE 25.39

General rules

1. A Party shall not be required to protect a name as a geographical indication under this

Sub-Section if that name conflicts with the name of a plant variety or an animal breed and, as a

result, is likely to mislead the consumer as to the true origin of the product.

2. If geographical indications of the Parties are homonymous, protection shall be granted by the

other Party to each geographical indication, provided that there is sufficient distinction in practice

between conditions of usage and presentation of the names so as to not mislead the consumer.

3. If a Party, in the context of bilateral negotiations with a third country, proposes to protect a

geographical indication of that third country which is homonymous with a geographical indication

of the other Party, it shall inform the other Party, which shall be given the opportunity to comment

before that geographical indication is protected.

4. Import, export and marketing of products corresponding to the geographical indications

referred to in Annex 25-C shall be conducted in compliance with the laws and regulations applying

in the territory of the Party in which the products are placed on the market.

5. Any matter arising from product specifications of protected geographical indications shall be

dealt with in the Sub-Committee referred to in Article 25.40.

& /en 65

6. The geographical indications protected under this Sub-Section may only be cancelled by the

Party in which the product originates. A Party shall notify the other Party if a geographical

indication listed in Annex 25-C ceases to be protected in its territory. Following such notification,

Annex 25-C shall be amended pursuant to Article 25.40(3).

7. A product specification referred to in this Sub-Section shall be that approved, including any

amendments also approved, by the authorities of the Party in the territory from which the product

originates.

ARTICLE 25.40

Sub-Committee, co-operation and transparency

1. For the purposes of this Sub-Section, the Sub-Committee referred to in Article 25.66 may

recommend to the Trade Council to amend, pursuant to subparagraph (a) of Article 33.1(6):

(a) Annex 25-A as regards the references to the law applicable in the Parties;

(b) Annex 25-B as regards the criteria to be included in the opposition procedure; and

(c) Annex 25-C as regards the geographical indications.

& /en 66

2. For the purposes of this Sub-Section, the Sub-Committee referred to in Article 25.66 shall be

responsible for exchanging information on:

(a) legislative and policy developments on geographical indications;

(b) geographical indications for the purpose of considering their protection in accordance with

this Sub-Section; and

(c) any other matter of mutual interest in the area of geographical indications.

3. Following the notification referred to in Article 25.39(6), the Sub-Committee shall

recommend to the Trade Council to amend Annex 25-C in accordance with subparagraph (c) of

paragraph 1 of this Article to end the protection under this Agreement.

4. In case of a minor change related to the spelling of a listed geographical indication or the

reference to the denomination of the geographical area to which it is attributable, a Party shall

notify the other Party in the Sub-Committee of such change together with its explanation. The

Sub-Committee shall recommend to the Trade Council to amend Annex 25-C, pursuant to

subparagraph (a) of Article 33.1(6), with such minor change.

& /en 67

5. The Parties shall, either directly or through the Sub-Committee, remain in contact on all

matters relating to the implementation and the functioning of this Sub-Section. In particular, a Party

may request from the other Party information relating to product specifications and their

amendments, as well as contact points for administrative enforcement.

6. The Parties may make publicly available the product specifications or a summary thereof and

contact points for administrative enforcement corresponding to the geographical indications of the

other Party protected pursuant to this Sub-Section.

ARTICLE 25.41

Other protection

1. This Sub-Section shall apply without prejudice to the rights and obligations of the Parties in

accordance with the WTO Agreement, or any other multilateral agreement on intellectual property

law to which the European Union and Chile are parties.

2. This Sub-Section is without prejudice to the right to seek recognition and protection of a

geographical indication under the relevant legislation of the Parties.

& /en 68

SUB-SECTION 5

PATENTS

ARTICLE 25.42

International agreements

Each Party **[1]** shall comply with the Patent Cooperation Treaty, done at Washington on 19 June 1970,

as amended on 28 September 1979, last modified on 3 October 2001.

ARTICLE 25.43

Supplementary protection in case of delays in marketing approval for pharmaceutical products

1. The Parties recognise that pharmaceutical products protected by a patent in their respective

territory may be subject to a marketing approval or sanitary permit procedure before being put on

the market.

**1** For the European Union, the obligation under this Article is fulfilled by the Member States.

& /en 69

2. Each Party shall provide for an adequate and effective mechanism which provides an

additional term of protection to compensate the patent owner for the reduction of the effective

patent protection resulting from unreasonable delays **[1]** in the granting of the first marketing approval

or sanitary permit in its territory. The additional term of protection shall not exceed five years.

3. Notwithstanding paragraph 2, a Party may provide for further protection, in accordance with

its laws and regulations, for a product which is protected by a patent and which has been subject to

a marketing approval or sanitary permit procedure, to compensate the holder of a patent for the

reduction of the effective patent protection. The duration of such further protection shall not exceed

five years. **[2]**

4. For greater certainty, in implementing the obligations of this Article, each Party may provide

for conditions and limitations, provided that the Party continues to give effect to this Article.

**1** For the purposes of this Article, an unreasonable delay shall include a delay of at least more
than two years in the first substantive response to the applicant after the date of filing of the
application for marketing approval or the sanitary permit. Any delays that occur in the
granting of a marketing approval or sanitary permit due to periods attributable to the applicant
or any period that is beyond the control of the authority processing the application for
marketing approval or of the sanitary registration authority need not be included in the
determination of such delay.
**2** This maximum duration is without prejudice to a possible further extension of the period of
protection in the case of medicinal products for which pediatric studies have been carried out,
and the results of those studies are reflected in the product information.

& /en 70

5. Each Party shall make best efforts to process applications for marketing approval or sanitary

registration of pharmaceutical products in an efficient and timely manner, with a view to avoiding

unreasonable or unnecessary delays. With the objective of avoiding unreasonable delays, a Party

may adopt or maintain procedures that expedite the processing of applications for marketing

approval or sanitary permit.

SUB-SECTION 6

PROTECTION OF UNDISCLOSED INFORMATION

ARTICLE 25.44

Scope of protection of trade secrets

1. In fulfilling its obligation to comply with the TRIPS Agreement, and in particular paragraphs

1 and 2 of Article 39 of the TRIPS Agreement, each Party shall provide for appropriate civil judicial

procedures and remedies for any trade secret holder to prevent, and obtain redress for, the

acquisition, use or disclosure of a trade secret whenever carried out in a manner contrary to honest

commercial practices.

& /en 71

2. For the purposes of this Sub-Section:

(a) "trade secret" means information that:

(i) is secret in the sense that it is not, as a body or in the precise configuration and assembly

of its components, generally known among or readily accessible to persons within the

circles that normally deal with the kind of information in question;

(ii) has commercial value because it is secret; and

(iii) has been subject to reasonable steps under the circumstances, by the person lawfully in

control of the information, to keep it secret;

(b) "trade secret holder" means any natural or juridical person lawfully controlling a trade secret.

3. For the purposes of this Sub-Section, at least the following conducts shall be considered

contrary to honest commercial practices:

(a) the acquisition of a trade secret without the consent of the trade secret holder, whenever

carried out by unauthorised access to, appropriation of, or copying of any documents, objects,

materials, substances or electronic files, lawfully under the control of the trade secret holder,

containing the trade secret or from which the trade secret can be deduced;

& /en 72

(b) the use or disclosure of a trade secret whenever carried out, without the consent of the trade

secret holder, by a person who is found to meet any of the following conditions:

(i) having acquired the trade secret in a manner referred to in subparagraph (a);

(ii) being in breach of a confidentiality agreement or any other duty not to disclose the trade

secret; or

(iii) being in breach of a contractual or any other duty to limit the use of the trade secret;

(c) the acquisition, use or disclosure of a trade secret whenever carried out by a person who, at

the time of the acquisition, use or disclosure, knew or ought, under the circumstances, to have

known that the trade secret had been obtained directly or indirectly from another person who

was using or disclosing the trade secret unlawfully within the meaning of subparagraph (b).

4. Nothing in this Sub-Section shall be understood as requiring either Party to consider any of

the following conducts as contrary to honest commercial practices:

(a) independent discovery or creation by a person of the relevant information;

(b) reverse engineering of a product by a person who is lawfully in possession of it and who is

free from any legally valid duty to limit the acquisition of the relevant information;

& /en 73

(c) acquisition, use or disclosure of information required or allowed by the law of that Party; or

(d) use by employees of their experience and skills honestly acquired in the normal course of

their employment.

5. Nothing in this Sub-Section shall be understood as restricting freedom of expression and

information, including media freedom, as protected in each Party.

ARTICLE 25.45

Civil judicial procedures and remedies of trade secrets

1. Each Party shall ensure that any person participating in the civil judicial proceedings referred

to in Article 25.44 or who has access to documents that form part of those legal proceedings, is not

permitted to use or disclose any trade secret or alleged trade secret which the competent judicial

authorities have, in response to a duly reasoned application by an interested party, identified as

confidential and of which that person became aware as a result of such participation or access.

& /en 74

2. In the civil judicial proceedings referred to in Article 25.44, each Party shall provide that its

judicial authorities have the authority at least to:

(a) order provisional measures, in accordance with the laws and regulations of a Party, to prevent

the acquisition, use or disclosure of the trade secret in a manner contrary to honest

commercial practices;

(b) order injunctive relief to prevent the acquisition, use or disclosure of the trade secret in a

manner contrary to honest commercial practices;

(c) order the person that knew or ought to have known that they were acquiring, using or

disclosing a trade secret in a manner contrary to honest commercial practices to pay the trade

secret holder damages that are appropriate to the actual prejudice suffered as a result of such

acquisition, use or disclosure of the trade secret;

(d) take specific measures to preserve the confidentiality of any trade secret or alleged trade

secret produced in civil proceedings relating to the alleged acquisition, use and disclosure of a

trade secret in a manner contrary to honest commercial practices; such specific measures may

include, in accordance with the law of the Party concerned, the possibility of:

(i) restricting access to certain documents in whole or in part;

(ii) restricting access to hearings and their corresponding records or transcripts;

& /en 75

(iii) making available a non-confidential version of the judicial decision in which the

passages containing trade secrets have been removed or redacted;

(e) impose sanctions on parties or any other persons participating in the legal proceedings who

fail or refuse to comply with the orders of competent judicial authorities concerning the

protection of the trade secret or alleged trade secret.

3. Each Party shall ensure that its judicial authorities do not have to apply the judicial

procedures and remedies referred to in Article 25.44 if the conduct contrary to honest commercial

practices is carried out, in accordance with its law, to reveal misconduct, wrongdoing or illegal

activity or for the purpose of protecting a legitimate interest recognised by the law of that Party.

ARTICLE 25.46

Protection of undisclosed data related to pharmaceutical products

1. If a Party requires, as a condition for a marketing approval or sanitary permit of a

pharmaceutical product which utilises a new chemical entity that has not been previously approved,

the submission of an undisclosed test or other data necessary to determine whether the use of that

product is safe and effective, the Party shall protect such data against disclosure to third parties if

the origination of such data involves considerable effort, except where the disclosure is necessary

for an overriding public interest or unless steps are taken to ensure that the data are protected

against unfair commercial use.

& /en 76

2. Each Party shall ensure that, for at least five years from the date of a first marketing approval

or sanitary permit in the Party concerned, a pharmaceutical product subsequently authorised on the

basis of the results of pre-clinical tests and clinical trials submitted in the application for the first

marketing approval or sanitary permit shall not be placed on the market without the explicit consent

of the holder of the first marketing approval or sanitary permit.

3. There shall be no limitation on either Party to implement abbreviated authorisation procedures

for pharmaceutical products on the basis of bioequivalence and bioavailability studies.

4. Each Party may provide for conditions and limitations in implementing the obligations of this

Article, provided that the Party continues to give effect to this Article.

ARTICLE 25.47

Protection of data related to agrochemical products

1. If a Party requires, as a condition for granting marketing authorisation for an agrochemical

product which utilises a new chemical entity, the submission of tests or study reports concerning the

safety and efficacy of that product, that Party shall not grant the authorisation for another product

on the basis of those tests or study reports without the consent of the person that previously

submitted them, for at least ten years after the date of the marketing authorisation of the

agrochemical product.

& /en 77

2. A Party may limit the protection under this Article to tests or study reports that fulfil the

following conditions:

(a) they are necessary for the authorisation or for an amendment of an authorisation to allow the

use on other crops; and

(b) they are certified as compliant with the principles of good laboratory practice or of good

experimental practice.

3. Each Party may establish rules to avoid duplicative testing on vertebrate animals.

4. In implementing the obligations of this Article, each Party may provide for conditions and

limitations, provided that the Party continues to give effect to this Article.

& /en 78

SUB-SECTION 7

PLANT VARIETIES

ARTICLE 25.48

Protection of plant variety rights

The Parties shall protect plant variety rights, in accordance with the International Convention for

the Protection of New Varieties of Plants of 2 December 1961, as lastly revised at Geneva

on 19 March 1991 ("the UPOV Convention"), including the exceptions to the breeder's right as

referred to in Article 15 of the UPOV Convention, and cooperate to promote and enforce those

rights.

& /en 79

SECTION C

ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1

CIVIL AND ADMINISTRATIVE ENFORCEMENT

ARTICLE 25.49

General obligations

1. Each Party reaffirms its commitments under the TRIPS Agreement and shall ensure the

enforcement of intellectual property rights in accordance with its law and practice. The Parties shall

provide for the measures, procedures and remedies provided for under this Sub-section.

2. This Section shall not apply to the rights covered by Sub-Section 6 of Section B.

3. A Party shall provide for measures, procedures and remedies that shall be fair and equitable,

and shall not be unnecessarily complicated or costly or entail unreasonable time-limits or

unwarranted delays.

& /en 80

4. Those measures, procedures and remedies shall also be effective, proportionate and dissuasive

and shall be applied in such a manner as to avoid the creation of barriers to legitimate trade and to

provide for safeguards against their abuse.

5. Nothing in this Section creates any obligation on either Party:

(a) to put in place a judicial system for the enforcement of intellectual property rights that is

distinct from that for the enforcement of law in general; or

(b) with respect to the distribution of resources as between enforcement of intellectual property

rights and the enforcement of law in general.

ARTICLE 25.50

Persons entitled to seek application of enforcement measures, procedures and remedies

Each Party shall recognise the following as persons entitled to seek application of the measures,

procedures and remedies referred to in this Section and in Part III of the TRIPS Agreement:

(a) holders of intellectual property rights in accordance with the law of each Party;

(b) all other persons authorised to use those rights, in particular licensees, insofar as permitted by

and in accordance with the law of each Party;

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(c) intellectual property collective rights management bodies which are regularly recognised as

having a right to represent holders of intellectual property rights, insofar as permitted by and

in accordance with the law of each Party;

(d) entities **[1]** which are regularly recognised as having a right to represent holders of intellectual

property rights, insofar as permitted by and in accordance with the law of each Party.

ARTICLE 25.51

Evidence

1. Each Party shall ensure that, even before the commencement of proceedings on the merits of

the case, the competent judicial authorities may, upon submission of an application by a party who

has presented reasonably available evidence to support their claims that their intellectual property

right has been infringed or is about to be infringed, order prompt and effective provisional measures

to preserve relevant evidence in respect of the alleged infringement, subject to the protection of

confidential information under the law of that Party. In ordering provisional measures, the judicial

authorities shall take into account the legitimate interests of the alleged infringer.

**1** For Chile, the term "entities" means "federations and associations". For the European Union,
the term "entities" means "professional defence bodies".

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2. The provisional measures referred to in paragraph 1 may include a detailed description, with

or without the taking of samples, or the physical seizure of the allegedly infringing goods and, in

appropriate cases, the materials and implements predominantly used in the production or

distribution of those goods and the documents relating thereto.

3. Each Party shall, in case of infringement of an intellectual property right committed on a

commercial scale, take the measures that are necessary to enable the competent judicial authorities

to order, where appropriate, upon application by a party, the communication of banking, financial or

commercial documents under the control of the opposing party, subject to the protection of

confidential information.

ARTICLE 25.52

Right of information

1. Each Party shall ensure that, during civil proceedings concerning an infringement of an

intellectual property right and in response to a justified and proportionate request of the claimant,

the competent judicial authorities may order the infringer or any other person to provide

information on the origin and distribution networks of the goods or services which infringe an

intellectual property right.

& /en 83

2. For the purposes of paragraph 1, "any other person" means a person who, at least:

(a) was found in possession of the infringing goods on a commercial scale;

(b) was found to be using the infringing services on a commercial scale;

(c) was found to be providing, on a commercial scale, services used in infringing activities; or

(d) was indicated by the person referred to in this paragraph, as being involved in the production,

manufacture or distribution of the infringing goods or the provision of the infringing services.

3. The information referred to in paragraph 1 may, as appropriate, comprise:

(a) the names and addresses of the producers, manufacturers, distributors, suppliers and other

previous holders of the goods or services, as well as the intended wholesalers and retailers;

and

(b) the quantities produced, manufactured, delivered, received or ordered, as well as the price

obtained for the goods or services in question.

4. This Article shall apply without prejudice to other laws of a Party which:

(a) grant the right holder rights to receive fuller information;

& /en 84

(b) govern the use, in civil proceedings, of the information communicated pursuant to this

Article;

(c) govern responsibility for misuse of the right of information;

(d) afford an opportunity for refusing to provide information which would force the person

referred to in paragraph 1 to admit their own participation or that of their close relatives in an

infringement of an intellectual property right; or

(e) govern the protection of confidentiality of information sources or the processing of personal

data.

& /en 85

ARTICLE 25.53

Provisional and precautionary measures

1. Each Party shall ensure that the judicial authorities may, at the request of the applicant, issue

against the alleged infringer an interlocutory injunction intended to prevent any imminent

infringement of an intellectual property right, or to forbid, on a provisional basis and subject, where

appropriate, to a recurring penalty payment if provided for by the law of that Party, the continuation

of the alleged infringements of that right, or to make such continuation subject to the lodging of

guarantees intended to ensure the compensation of the right holder. An interlocutory injunction may

also be issued, under the same conditions, where appropriate, against a third party **[1]** over whom the

relevant judicial authority exercises jurisdiction and whose services are used to infringe an

intellectual property right.

2. Each Party shall ensure that its judicial authorities may, at the request of the applicant, order

the seizure or the delivery up **[2]** of goods suspected of infringing an intellectual property right, so as

to prevent their entry into, or movement within, the channels of commerce.

**1** For the purposes of this Article, a Party may provide that a "third party" includes an
intermediary.
**2** A Party may choose between seizure and delivery up to implement this paragraph.

& /en 86

3. In the case of an alleged infringement committed on a commercial scale, each Party shall

ensure that, if the applicant demonstrates circumstances likely to endanger the recovery of damages,

the judicial authorities may order the precautionary seizure of the movable and immovable property

of the alleged infringer, including the blocking of their bank accounts and other assets. For those

purposes, the competent authorities may order the communication of bank, financial or commercial

documents, or appropriate access to the relevant information.

ARTICLE 25.54

Remedies

1. Each Party shall ensure that the judicial authorities have the authority to order, at the request

of the applicant and without prejudice to any damages due to the right holder by reason of the

infringement, and without compensation of any sort, the destruction or at least the definitive

removal from the channels of commerce, of goods that they have found to be infringing an

intellectual property right. If appropriate, the judicial authorities may also order the destruction of

materials and implements predominantly used in the creation or manufacture of those goods.

2. The judicial authorities of each Party shall have the authority to order that those measures be

carried out at the expense of the infringer, unless particular reasons are invoked for not doing so.

3. In considering a request for remedies the need for proportionality between the seriousness of

the infringement and the remedies ordered as well as the interests of third parties shall be taken into

account.

& /en 87

ARTICLE 25.55

Injunctions

Each Party shall ensure that, where a judicial decision is taken finding an infringement of an

intellectual property right, the judicial authorities may issue against the infringer and, if appropriate,

against a third party **[1]** over whom the relevant judicial authority exercises jurisdiction and whose

services are used to infringe an intellectual property right, an injunction aimed at prohibiting the

continuation of the infringement.

ARTICLE 25.56

Alternative measures

Each Party may provide that the judicial authorities, in appropriate cases and at the request of the

person liable to be subject to the measures provided for in Article 25.54 or 25.55, may order

pecuniary compensation to be paid to the injured party instead of applying the measures provided

for in Article 25.54 or 25.55 if that person acted unintentionally and without negligence, if

execution of the measures in question would cause that person disproportionate harm and if

pecuniary compensation to the injured party appears reasonably satisfactory.

**1** For the purposes of this Article, a Party may provide that a "third party" includes an
intermediary.

& /en 88

ARTICLE 25.57

Damages

1. Each Party shall ensure that the judicial authorities, on application of the injured party, order

the infringer who knowingly, or with reasonable grounds to know, engaged in an infringing activity,

to pay the right holder damages adequate to compensate for the injury that the right holder has

suffered as a result of the infringement.

2. In determining the amount of damages under paragraph 1, the judicial authorities of each

Party shall have the authority to consider, _inter alia_, any legitimate measure of value that the right

holder submits, which may include lost profits, the value of the infringed goods or services

measured by the market price, or the suggested retail price **[1]** . At least in cases of copyright or related

rights infringement and trademark counterfeiting, each Party shall provide that, in civil judicial

proceedings, its judicial authorities have the authority to order the infringer to pay the right holder

the infringer's profits that are attributable to the infringement, whether as an alternative to, in

addition to, or as part of the damages.

3. As an alternative to paragraph 2, each Party may provide that its judicial authorities have the

authority, in appropriate cases, to set the damages as a lump sum on the basis of elements such as at

least the amount of royalties or fees which would have been due if the infringer had requested

authorisation to use the intellectual property right in question.

**1** For the European Union, this would also include, as appropriate, elements other tan economic
factors such as the moral prejudice caused to the right holder by the infringement.

& /en 89

4. Nothing in this Article precludes either Party from providing that, if the infringer did not

knowingly, or with reasonable grounds to know, engage in infringing activity, its judicial

authorities may order in favour of the injured party the recovery of profits or the payment of

damages, which may be pre-established.

ARTICLE 25.58

Legal costs

Each Party shall provide that its judicial authorities, where appropriate, have the authority to order,

at the conclusion of civil judicial proceedings concerning the enforcement of intellectual property

rights, that the prevailing party be awarded the payment by the losing party of legal costs and other

expenses, as provided for under the law of the Party concerned.

ARTICLE 25.59

Publication of judicial decisions

Each Party shall ensure that, in legal proceedings instituted for infringement of an intellectual

property right, the judicial authorities may order, at the request of the applicant and at the expense

of the infringer, appropriate measures for the dissemination of the information concerning the

decision, including displaying the decision and publishing it in full or in part.

& /en 90

ARTICLE 25.60

Presumption of authorship or ownership

The Parties shall recognise that for the purposes of applying the measures, procedures and remedies

provided for in this Section :

(a) for the author of a literary or artistic work, in the absence of proof to the contrary, to be

regarded as such, and consequently to be entitled to institute infringement proceedings, it

shall be sufficient for the name of the author to appear on the work in the usual manner; and

(b) subparagraph (a) shall apply _mutatis mutandis_ to the holders of rights related to copyright

with regard to their protected subject matter.

ARTICLE 25.61

Administrative procedures

To the extent that any civil remedy can be ordered as a result of administrative procedures on the

merits of a case, such procedures shall conform to principles that are equivalent in substance to

those set forth in the relevant provisions of this Sub-Section.

& /en 91

SUB-SECTION 2

BORDER ENFORCEMENT

ARTICLE 25.62

Border measures

1. With respect to goods under customs control, each Party shall adopt or maintain procedures

under which a right holder may submit applications requesting competent authorities to suspend the

release of or detain suspected goods. For the purposes of this Sub-Section, "suspected goods" means

goods suspected of infringing trademarks, copyrights and related rights, geographical indications,

patents, utility models, industrial designs and topographies of integrated circuits.

2. Each Party shall have in place electronic systems for the management by competent

authorities of the applications granted or recorded.

3. Each Party shall ensure that its competent authorities do not charge a fee to cover the

administrative costs resulting from the processing of an application or a recordation.

4. Each Party shall ensure that its competent authorities decide about granting or recording of an

application within a reasonable period of time.

& /en 92

5. Each Party shall ensure that the granted or recorded application or recordation applies to

multiple shipments.

6. With respect to goods under customs control, each Party shall ensure that its customs

authorities may act upon their own initiative to suspend the release of or detain goods suspected of

infringing trademarks or copyright.

7. Customs authorities shall use risk analysis to identify goods suspected of infringing

intellectual property rights. Each Party shall implement this paragraph in accordance with its law.

8. Each Party may have in place procedures allowing for the destruction of goods suspected of

infringing intellectual property rights, without the need for prior administrative or judicial

proceedings for the formal determination of the infringements in cases where the persons concerned

agree or do not oppose to such destruction. If such goods are not destroyed, each Party shall ensure

that, except in exceptional circumstances, such goods are disposed of outside the commercial

channel in a manner that avoids any harm to the right holder.

9. Each Party may have in place procedures allowing for the swift destruction of counterfeit

trademark and pirated goods that are sent through postal or express couriers consignments.

10. A Party may decide not to apply this Article to the import of goods that are put on the market

of a third country by, or with the consent of, the right holders. A Party may also decide not to apply

this Article to goods of a non-commercial nature contained in travellers' personal luggage.

& /en 93

11. The customs authorities of the Parties shall maintain a regular dialogue and promote

cooperation with the relevant stakeholders and with other authorities involved in the enforcement of

intellectual property rights.

12. The Parties shall cooperate in respect of international trade in suspected goods. In particular,

the Parties shall share, as far as possible, information on trade in suspected goods affecting the other

Party.

13. Without prejudice to other forms of cooperation, the Protocol to this Agreement on Mutual

Administrative Assistance in Customs Matters applies to breaches of legislation on intellectual

property rights for the enforcement of which the customs authorities of a Party are competent in

accordance with this Article.

ARTICLE 25.63

Consistency with GATT and TRIPS Agreement

In implementing border measures for the enforcement of intellectual property rights by its customs

authorities, whether or not covered by this Sub-section, each Party shall ensure consistency with its

obligations under GATT 1994 and the TRIPS Agreement and, in particular, with Article V of

GATT 1994 and Article 41 and Section 4 of Part III of the TRIPS Agreement.

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SECTION D

FINAL PROVISIONS

ARTICLE 25.64

Cooperation

1. The Parties shall cooperate with a view to supporting the implementation of the commitments

and obligations undertaken under this Chapter.

2. The areas of cooperation on intellectual property rights protection and enforcement matters

may include but are not limited to the following activities:

(a) exchange of information on the legal framework concerning intellectual property rights and

relevant rules of protection and enforcement;

(b) exchange of experience between the Parties on legislative progress;

(c) exchange of experience between the Parties on the enforcement of intellectual property rights;

(d) exchange of experience between the Parties on enforcement at central and sub-central level by

customs authorities, police, administrative and judiciary authorities;

& /en 95

(e) coordination to prevent exports of counterfeit goods, including with third countries;

(f) technical assistance, capacity building; exchange and training of personnel;

(g) the protection and defence of intellectual property rights and the dissemination of information

in this regard in, _inter alia_, business circles and civil society;

(h) public awareness of consumers and right holders, as well as enhancement of institutional

cooperation, particularly between their intellectual property offices;

(i) active promotion of awareness and education of the general public on policies concerning

intellectual property rights;

(j) public-private collaboration engaging SMEs, including at SME-focused events or gatherings,

regarding the protection and enforcement of intellectual property rights and the reduction of

their infringement; and

(k) formulation of effective strategies to identify audiences and communication programmes to

increase consumer and media awareness on the impact of intellectual property rights'

violations, including the risk to health and safety and the connection to organised crime.

3. Each Party may make publicly available the product specifications, or a summary thereof, and

relevant contact points for control or management of geographical indications of the other Party as

protected pursuant to Sub-Section 4 of Section B.

& /en 96

4. The Parties shall, either directly or through the Sub-Committee referred to in Article 25.66,

maintain contact on all matters related to the implementation and functioning of this Chapter.

ARTICLE 25.65

Voluntary stakeholder initiatives

Each Party shall endeavour to facilitate voluntary stakeholder initiatives to reduce intellectual

property rights infringements, including online and in other marketplaces focusing on concrete

problems and seeking practical solutions that are realistic, balanced, proportionate and fair for all

concerned including in the following ways:

(a) each Party shall endeavour to convene stakeholders consensually in its territory to facilitate

voluntary initiatives to find solutions and resolve differences regarding the protection and

enforcement of intellectual property rights and reducing infringement;

(b) each Party shall endeavour to exchange information with the other Party regarding efforts to

facilitate voluntary stakeholder initiatives in its territory; and

& /en 97

(c) the Parties shall endeavour to promote open dialogue and cooperation among the Parties'

stakeholders, and to encourage the Parties' stakeholders to jointly find solutions and resolve

differences regarding the protection and enforcement of intellectual property rights and

reducing their infringement.

ARTICLE 25.66

Sub-Committee on Intellectual Property

The Sub-Committee on Intellectual Property ("Sub-Committee"), established pursuant to

Article 33.4(1), shall monitor and ensure proper implementation and functioning of this Chapter and

Annexes 25-A, 25-B and 25-C. The Sub-Committee shall also perform specific tasks attributed to it

in this Chapter, including Article 25.40.

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CHAPTER 26

TRADE AND SUSTAINABLE DEVELOPMENT

SECTION A

COMMON PROVISIONS

ARTICLE 26.1

Objectives

1. The Parties recall the Agenda 21 on Environment and Development, adopted at the UN

Conference on Environment and Development held in Rio de Janeiro, on 3 to 14 June 1992, the

Johannesburg Plan of Implementation of the World Summit on Sustainable Development of 2002,

the International Labour Organization ("ILO") Declaration on Social Justice for a Fair

Globalization, adopted by the International Labour Conference at its 97th Session, held in Geneva

on 10 June 2008 (the "ILO Declaration on Social and Justice for a Fair Globalization"), the

Outcome Document of the UN Conference on Sustainable Development of 2012 entitled "The

Future We Want", and the 2030 Agenda and its Sustainable Development Goals.

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2. The Parties recognise that sustainable development encompasses economic development,

social development and environmental protection, all three being interdependent and mutually

reinforcing for the welfare of present and future generations.

3. In light of the above, the objective of this Chapter is to enhance the trade and investment

relationship between the Parties in a way that contributes to sustainable development, in particular

its labour **[1]** and environmental dimensions that are relevant to trade and investment.

4. This Chapter embodies a cooperative approach based on common values and interests.

ARTICLE 26.2

Right to regulate and levels of protection

1. The Parties recognise the right of each Party to determine its sustainable development policies

and priorities, in particular to establish its own levels of domestic labour and environmental

protection and its own labour and environmental priorities, and to adopt or modify its law related to

labour and environment and policies accordingly.

**1** For the purposes of this Chapter, the term "labour" means the strategic objectives of the ILO
under the Decent Work Agenda, which is expressed in the ILO Declaration on Social Justice
for a Fair Globalization.

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2. The levels of protection, law and policies referred to in paragraph 1 shall be consistent with

each Party's commitment to the multilateral environmental agreements ("MEAs") and multilateral

labour standards and agreements, referred to in this Chapter to which it is party.

3. Each Party shall strive to ensure that its environmental and labour laws, regulations and

policies provide for and encourage a high level of environmental and labour protection and shall

strive to continue improving its levels of environmental and labour protection provided in its laws,

regulations and policies.

4. A Party shall not weaken or reduce the levels of protection afforded in its environmental and

labour laws and regulations in order to encourage trade or investment.

5. A Party shall not waive or otherwise derogate from, or offer to waive or otherwise derogate

from, its environmental and labour laws and regulations in a manner that weakens or reduces the

levels of protection afforded in those laws and regulations in order to encourage trade or

investment.

6. A Party shall not, through a sustained or recurring course of action or inaction, fail to

effectively enforce its environmental and labour laws and regulations in a manner affecting trade or

investment.

7. Each Party retains the right to exercise reasonable discretion and to make _bona fide_ decisions

with regard to the allocation of enforcement resources in accordance with priorities for the

enforcement of its environmental and labour laws and regulations.

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8. A Party shall not apply its environmental and labour laws and regulations in a manner which

would constitute a disguised restriction on trade or investment.

ARTICLE 26.3

Trade and responsible business conduct and management of supply chains

1. The Parties recognise the importance of responsible management of supply chains through

responsible business conduct or corporate social responsibility practices, and the role of trade in

pursuing this objective.

2. In accordance with paragraph 1, each Party shall:

(a) promote responsible business conduct or corporate social responsibility by encouraging the

uptake by businesses of relevant practices that are consistent with internationally recognised

principles, standards and guidelines, including sectorial guidelines of due diligence, that have

been endorsed or are supported by that Party; and

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(b) support the dissemination and use of relevant international instruments that have been

endorsed or are supported by that Party, such as the OECD Guidelines for Multinational

Enterprises, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises

and Social Policy adopted in Geneva in November 1977 (the "ILO Tripartite Declaration of

Principles concerning Multinational Enterprises and Social Policy"), the UN Global Compact

and the UN Guiding Principles on Business and Human Rights endorsed by the Human

Rights Council in its Resolution 17/4 of 16 June 2011.

3. The Parties recognise the utility of international sector-specific guidelines in the area of

corporate social responsibility or responsible business conduct and shall promote joint work in this

regard. The Parties shall also implement measures to promote the adherence to OECD Due

Diligence Guidelines.

4. The Parties recognise the importance of promoting trade in goods that contribute to enhanced

social conditions and environmentally sound practices, such as environmental goods and services

contributing to a resource-efficient, low-carbon economy, goods whose production is not linked to

deforestation and goods that are the subject of voluntary sustainability assurance schemes and

mechanisms.

5. The Parties shall exchange information as well as best practices and, as appropriate, cooperate

bilaterally, regionally and in international fora, on issues covered by this Article.

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ARTICLE 26.4

Scientific and technical information

1. When establishing or implementing measures aimed at protecting the environment or labour

conditions that may affect trade or investment between the Parties, each Party shall take into

account available scientific and technical evidence, preferably from recognised technical and

scientific bodies, as well as relevant international standards, guidelines or recommendations, where

they exist.

2. If scientific evidence or information is insufficient or inconclusive and there is a risk of

serious environmental degradation or risk to occupational health and safety in its territory, a Party

may adopt measures based on the precautionary principle. Such measures shall be subject to review

if new or additional scientific information becomes available.

3. If a measure adopted in accordance with paragraph 2 has an impact on trade or investment

between the Parties, a Party may request the Party that adopted the measure to provide information

indicating that the measure is consistent with its own levels of protection, and may request

discussion of the matter in the Sub-Committee on Trade and Sustainable Development.

4. Such measures shall not be applied in a manner which would constitute a means of arbitrary

or unjustifiable discrimination or a disguised restriction on trade or investment.

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ARTICLE 26.5

Transparency and good regulatory practices

The Parties recognise the importance of the application of the rules on transparency and good

regulatory practices in accordance with Chapters 28 and 29, in particular the rules providing

opportunities for interested persons to submit views in respect of:

(a) measures aimed at protecting the environment and labour conditions that may affect trade or

investment; and

(b) trade or investment measures that may affect the protection of the environment or labour

conditions.

ARTICLE 26.6

Public awareness, information, participation and procedural guarantees

1. Each Party shall promote public awareness of its labour and environmental laws and

regulations, including by ensuring that its labour and environmental laws and regulations and

enforcement and compliance procedures are publicly available.

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2. Each Party shall seek to accommodate requests for information from any person regarding the

Party's implementation of this Chapter.

3. Each Party shall make use of the mechanisms referred to in Articles 33.5, 33.6 and 33.7 to

seek views on matters related to the implementation of this Chapter.

4. Each Party shall provide for the receipt of, and give due consideration to, communications

and opinions by way of written submissions from a person of that Party on matters related to the

implementation of this Chapter in accordance with its domestic procedures. A Party shall respond in

writing and in a timely manner to such submissions. It may notify such communications and

opinions to its Domestic Consultative Group established pursuant to Article 33.6 and the contact

point of the other Party designated pursuant to Article 26.19(6).

5. Each Party shall, in accordance with its law, ensure that access to administrative or judicial

procedures is available to persons with a legally recognised interest in a particular matter or who

claim that their right has been infringed, in order to permit action against infringements of its

environmental or labour law, including appropriate remedies for violations of such law.

6. Each Party shall, in accordance with its law, ensure that the procedures referred to in

paragraph 5 comply with due process, are not prohibitively costly, do not entail unreasonable time

limits or unwarranted delays, provide injunctive relief if appropriate, and are fair, equitable and

transparent.

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ARTICLE 26.7

Cooperation activities

1. The Parties recognise the importance of cooperation activities on trade-related aspects of

environmental and labour policies in order to achieve the objectives of this Agreement and

implement this Chapter.

2. Cooperation activities can be developed and implemented with the participation of

international and regional organisations as well as with third countries, businesses, employers' and

workers' organisations, education and research organisations and other non-governmental

organisations, as appropriate.

3. Cooperation activities shall be carried out on issues and topics agreed upon by the Parties to

address matters of common interest.

4. The Parties may cooperate on issues as specified throughout this Chapter as well as,

_inter alia_ :

(a) labour and environmental aspects of trade and sustainable development in international fora,

including in particular the WTO, the UN High-level Political Forum on Sustainable

Development, the UN Environment Programme ("UNEP"), the ILO and MEAs;

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(b) the impact of labour and environmental laws and standards on trade and investment;

(c) the impact of trade and investment law on labour and the environment; and

(d) trade-related aspects of:

(i) initiatives on sustainable consumption and production, including those aimed at

promoting a circular economy and green growth and pollution abatement; and

(ii) initiatives to promote environmental goods and services, including by addressing related

non-tariff barriers.

5. The priorities for cooperation activities shall be decided jointly by the Parties based on areas

of mutual interest and available resources.

6. The Parties may carry out activities in the cooperation areas set out in this Chapter in person

or by any technological means available to the Parties.

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SECTION B

ENVIRONMENT AND TRADE

ARTICLE 26.8

Objectives

1. The Parties aim to promote mutually supportive trade and environmental policies, high levels

of environmental protection in line with MEAs to which they are party respectively and effective

enforcement of their respective environmental laws and regulations, and to enhance their capacity to

address trade-related environmental issues, including through cooperation.

2. The Parties recognise that enhanced cooperation to protect and conserve the environment and

sustainably manage their natural resources has benefits that can contribute to sustainable

development, strengthen their environmental governance and complement the objectives of this

Agreement.

3. The Parties recognise the importance of mutually supportive trade and environmental policies

and practices to improve environmental protection in promoting sustainable development.

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ARTICLE 26.9

Multilateral environmental governance and agreements

1. The Parties recognise the importance of the UN Environment Assembly of the UNEP. The

Parties recognise the critical role of MEAs in addressing global, regional and domestic

environmental challenges. The Parties further recognise the need to enhance mutual supportiveness

between trade and environmental policies. Accordingly, each Party shall effectively implement

MEAs and protocols to which it is party.

2. The Parties recognise the right of each Party to adopt or maintain measures to further the

objectives of MEAs to which it is party.

3. The Parties shall engage in dialogue and cooperate, as appropriate, on trade and

environmental issues of mutual interest, in particular with respect to MEAs. This shall include

regular exchanges of information on the initiatives of each Party regarding the ratifications of

MEAs, including their protocols and amendments.

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ARTICLE 26.10

Trade and climate change

1. The Parties recognise the importance of MEAs in the area of climate change, in particular the

need to achieve the objective of the UN Framework Convention on Climate Change, done at New

York on 9 May 1992 ("UNFCCC") and the purpose and goals of the Paris Agreement, in order to

address the urgent threat of climate change. Accordingly, the Parties recognise the role of trade in

achieving the goal of sustainable development and addressing climate change, as well as the

importance of individual and collective efforts to address climate change impacts through

mitigation and adaptation actions.

2. In accordance with paragraph 1, each Party shall:

(a) effectively implement the UNFCCC and the Paris Agreement adopted thereunder including its

commitments with regard to its nationally determined contributions;

(b) promote the positive contribution of trade to the transition to a low greenhouse gas emission

and circular economy and to climate-resilient development, including actions on climate

change mitigation and adaptation; and

(c) facilitate and promote trade and investment in goods and services of particular relevance for

climate change mitigation and adaptation, for sustainable renewable energy and for energy

efficiency, in a manner consistent with other provisions of this Agreement.

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3. Consistently with Article 26.7, the Parties shall cooperate, as appropriate, on trade-related

aspects of climate change, bilaterally, regionally and in international fora, including in the

UNFCCC, the WTO and the Montreal Protocol on Substances that Deplete the Ozone Layer,

concluded at Montreal on 16 September 1987 ("Montreal Protocol"). Furthermore, the Parties may

cooperate, as appropriate, on these issues also in the International Maritime Organization.

4. In accordance with paragraph 1, the Parties shall cooperate in areas such as:

(a) exchanging knowledge and experience regarding the implementation of the Paris Agreement,

as well as on initiatives to promote climate resilience, renewable energy, low emission

technologies, energy efficiency, carbon pricing, sustainable transport, sustainable and climate

resilient infrastructure development, emissions monitoring, and nature-based solutions; as

well as explore options to cooperate in areas such as short-life climate pollutants and soil

carbon sequestration; and

(b) exchanging knowledge and experience regarding an ambitious phase-out of ozone depleting

substances and the phase-down of hydrofluorocarbons under the Montreal Protocol through

measures to control their production, consumption and trade, the introduction of

environmentally friendly alternatives to them, updating of safety and other relevant standards,

combating the illegal trade of substances regulated by the Montreal Protocol, as appropriate.

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ARTICLE 26.11

Trade and forests

1. The Parties recognise the importance of sustainable forest management, and the role of trade

in pursuing this objective.

2. In accordance with paragraph 1, each Party shall:

(a) implement measures to combat illegal logging and related trade, including through

cooperation activities with third countries, as appropriate;

(b) encourage the conservation and sustainable management of forests;

(c) promote trade and consumption of timber and timber products which are legally obtained

from sustainably managed forests; and

(d) exchange information and, as appropriate, cooperate with the other Party on trade-related

initiatives on combatting illegal logging, sustainable forest management, deforestation and

forest degradation, forest governance and on the conservation of forest cover to maximise the

impact and mutual supportiveness of their respective policies of common interest.

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3. Recognising that forests and their sustainable management have a key role in combatting

climate change and maintaining biodiversity, each Party shall promote initiatives addressing

deforestation, including through deforestation-free supply chains. Additionally, the Parties shall

cooperate, as appropriate and consistently with Article 26.7, bilaterally, regionally and in relevant

international fora, to minimise deforestation and forest degradation worldwide.

ARTICLE 26.12

Trade and wild flora and fauna

1. The Parties recognise the importance of ensuring that international trade of wild fauna and

flora does not threaten their survival, as set out in the Convention on International Trade in

Endangered Species of Wild Fauna and Flora, done at Washington D.C. on 3 March 1973

("CITES").

2. In accordance with paragraph 1, each Party shall:

(a) implement effective measures to combat illegal trade in wild flora and fauna, including

through cooperation activities with third countries, as appropriate; and

(b) promote the long-term conservation and sustainable use of the species listed in the

Appendices to CITES, including by cooperating in the relevant CITES bodies to keep the

Appendices to CITES up to date and by promoting the inclusion of species considered at risk

because of international trade and other criteria established under CITES.

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3. Consistently with Article 26.7, the Parties may, as appropriate, cooperate or exchange

information bilaterally, regionally and in international fora on issues of mutual interest related to

tackling illegal trade in wild flora and fauna, including through raising awareness to reduce demand

for illegal wildlife products and initiatives to enhance cooperation on information sharing and

enforcement.

ARTICLE 26.13

Trade and biological diversity

1. The Parties recognise the importance of conserving and sustainably using biological diversity,

and the role of trade in pursuing these objectives, consistent with the Convention on Biological

Diversity, done at Rio de Janeiro on 5 June 1992 ("CBD"), other relevant MEAs to which they are

party, and the decisions adopted thereunder.

2. In accordance with paragraph 1, each Party shall take measures to conserve biological

diversity when it is subject to pressures linked to trade and investment, including through the

exchange of information and experience, and measures to prevent the spread of invasive alien

species, recognising that the movement of terrestrial and aquatic invasive alien species across

borders through trade-related pathways can adversely affect the environment, economic activities

and development, and human health.

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3. The Parties recognise the importance of respecting, preserving and maintaining knowledge

and practices of indigenous and local communities embodying traditional lifestyles that contribute

to the conservation and sustainable use of biological diversity, and the role of trade therein.

4. The Parties recognise the importance of facilitating access to genetic resources and of

promoting the fair and equitable sharing of benefits arising from the use of genetic resources,

consistent with their respective domestic measures and each Party's international obligations.

5. The Parties also recognise the importance of public participation and consultation, in

accordance with their respective law or policy, in the development and implementation of measures

concerning the conservation and sustainable use of biological diversity.

6. Consistently with Article 26.7, the Parties may, as appropriate, promote, cooperate or

exchange information bilaterally, regionally and in international fora, on trade-related aspects of

biological diversity policies and measures of mutual interest, such as:

(a) initiatives and good practices concerning trade in natural resource-based products obtained

through a sustainable use of biological resources and contributing to the conservation of

biodiversity;

(b) the conservation and sustainable use of biological diversity, and the protection, restoration

and valuation of ecosystems and their services and related economic instruments; and

(c) access to genetic resources and the fair and equitable sharing of benefits from their utilisation.

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ARTICLE 26.14

Trade and sustainable management of fisheries and aquaculture

1. The Parties recognise the importance of conserving and sustainably managing marine

biological resources and marine ecosystems, and the role of trade in pursuing these objectives.

2. While developing and implementing conservation and management measures, the Parties

shall take into consideration social, trade, development and environmental concerns and the

importance of artisanal or small-scale fisheries to the livelihoods of local fishing communities.

3. The Parties acknowledge that illegal, unreported and unregulated (IUU) fishing **[1]** can have

significant negative impacts on fish stocks, the sustainability of trade in fisheries products,

development and the environment, and confirm the need for action to address the problems of

overfishing and unsustainable utilization of fisheries resources.

**1** The term "illegal, unreported and unregulated fishing" is to be understood to have the same
meaning as set out in paragraph 3 of the International Plan of Action to Prevent, Deter and
Eliminate Illegal, Unreported and Unregulated Fishing of the UN Food and Agricultural
Organization, adopted in Rome, 2001 ("2001 IUU Fishing Plan of Action").

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4. In accordance with paragraphs 1 to 3, each Party shall:

(a) implement and act consistently with the principles of the UN Convention on the Law of the

Sea, done at Montego Bay, on 10 December 1982, the UN Agreement for the Implementation

of the Provisions of the United Nations Convention on the Law of the Sea

of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks

and Highly Migratory Fish Stocks, adopted in New York, on 4 August 1995, the Food and

Agriculture Organisation of the UN ("FAO"), the Agreement to Promote Compliance with

International Conservation and Management Measures by Fishing Vessels on the High Seas,

adopted in Rome, on 24 November 1993, the FAO Code of Conduct for Responsible

Fisheries, adopted in Resolution 4/95 on 31 October 1995, and the FAO Agreement on Port

State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing,

done in Rome, on 22 November 2009;

(b) participate in the FAO's initiative on the Global Record of Fishing Vessels, Refrigerated

Transport Vessels and Supply Vessels;

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(c) seek to operate a fisheries management system based on the best available scientific evidence

and on internationally recognised best practices for fisheries management and conservation,

as reflected in the relevant provisions of international instruments aimed at ensuring the

sustainable use and conservation of marine species **[1]**, and designed, _inter alia_, to:

(i) prevent overfishing and overcapacity;

(ii) reduce bycatch of non-target species;

(iii) promote the recovery of overfished stocks for all marine fisheries; and

(iv) promote fisheries management with an ecosystem approach, including through

cooperation among the Parties;

(d) in support of efforts to combat IUU fishing practices and to help deter trade in products from

species harvested from those practices:

(i) implement effective measures to combat IUU fishing;

**1** These instruments include, among others, and as they may apply, UN Convention on the Law
of the Sea, the UN Agreement for the Implementation of the Provisions of the United Nations
Convention on the Law of the Sea of December 1982 relating to the Conservation and
Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, the FAO Code of
Conduct for Responsible Fisheries, the FAO Agreement to Promote Compliance with
International Conservation and Management Measures by Fishing Vessels on the High Seas,
the 2001 IUU Fishing Plan of Action, and the FAO Agreement on Port State Measures to
Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing.

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(ii) ensure the use of monitoring, control, surveillance, compliance and enforcement

systems, to:

(A) prevent and deter, in accordance with its international obligations and its law,

vessels that are flying its flag and its natural persons from engaging in

IUU fishing activities; and

(B) address the transhipment at sea of fish or fish products to deter and avoid

IUU fishing activities;

(iii) implement port state measures; and

(iv) implement measures to prevent IUU fishing and fish products from entering in each

Party's supply chains and cooperate to this end, including by facilitating the exchange of

information;

(e) participate actively in the work of the regional fisheries management organisations

(“RFMOs”) to which it is a member, observer, or cooperating non-contracting party, with the

aim of achieving good fisheries governance and sustainable fisheries, such as through the

promotion of scientific research and the adoption of conservation measures based on best

scientific evidence available, the strengthening of compliance mechanisms, the undertaking of

periodical performance reviews and the adoption of effective control, monitoring and

enforcement of the RFMOs' management measures and, where applicable, the adoption and

implementation of catch documentation or certification schemes and port state measures;

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(f) strive to act consistently with relevant conservation and management measures adopted by

RFMOs of which it is not a member so as not to undermine those measures and endeavour not

to undermine catch or trade documentation schemes operated by RFMOs or arrangements of

which it is not a member; and

(g) promote the development of sustainable and responsible aquaculture, taking into account its

economic, social and environmental aspects, according to the implementation of the

objectives and principles contained in the FAO Code of Conduct for Responsible Fisheries.

5. The Parties shall cooperate, as appropriate and consistently with Article 26.7, bilaterally and

within RFMOs with the aim of promoting sustainable fishing practices and trade in fish products

from sustainably managed fisheries. Additionally, the Parties may cooperate to exchange

knowledge and good practices to support the implementation of this Article.

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SECTION C

LABOUR AND TRADE

ARTICLE 26.15

Objectives

1. The Parties recognise that trade and investment provides opportunities for job creation and

decent work, including for young people, with terms and conditions of employment that adhere to

the principles laid down in the ILO Declaration on Fundamental Principles and Rights at Work,

adopted by the International Labour Conference in Geneva on 18 June 1998 and as amended

in 2022 (the "ILO Declaration on Fundamental Principles and Rights at Work") and the

ILO Declaration on Social Justice for a Fair Globalization of 2008 as amended in 2022.

2. The Parties aim to ensure high levels of labour protection in line with the international labour

standards to which they adhere and to promote mutually supportive trade and labour policies with a

view to improving the working conditions and quality of work life of employees. They will strive to

improve the development and management of human capital for enhanced employability, business

excellence, and greater productivity for the benefit of both workers and enterprise. Accordingly, the

Parties endeavour to provide opportunities for young people to develop the necessary skills to

successfully access and remain in the labour market.

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3. The Parties aim to cooperate on trade-related labour issues of mutual interest in order to

strengthen the broader relationship between the Parties.

ARTICLE 26.16

Multilateral labour standards and agreements

1. The Parties affirm their commitment to promote the development of international trade in a

way that is conducive to decent work for all, in particular women, young people and persons with

disabilities, in line with their respective obligations under the ILO, including those stated in the

ILO Declaration on Fundamental Principles and Rights at Work as amended in 2022 and the

ILO Declaration on Social Justice for a Fair Globalization as amended in 2022.

2. Recalling the ILO Declaration on Social Justice for a Fair Globalization as amended in 2022,

the Parties note that the violation of fundamental principles and rights at work cannot be invoked or

otherwise used as a legitimate comparative advantage and that labour standards should not be used

for protectionist trade purposes.

3. Each Party shall effectively implement the ILO Conventions ratified by Chile and the

Member States respectively.

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4. In accordance with the Constitution of the ILO, adopted as Part XIII of the Treaty of

Versailles, signed on 28 June 1919 and the ILO Declaration on Fundamental Principles and Rights

at Work as amended in 2022, each Party shall respect, promote and effectively implement the

internationally recognised core labour standards, as defined in the fundamental ILO Conventions,

which are:

(a) freedom of association and the effective recognition of the right to collective bargaining;

(b) the elimination of all forms of forced or compulsory labour;

(c) the effective abolition of child labour including the prohibition on the worst forms of child

labour;

(d) the elimination of discrimination in respect of employment and occupation; and

(e) a safe and healthy working environment.

5. The Parties shall regularly exchange information on their respective progress with regard to

the ratification of ILO Conventions or protocols that are classified as up-to-date by the ILO and to

which they are not yet party.

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6. Each Party shall promote the ILO Decent Work Agenda as set out in the ILO Declaration on

Social Justice for a Fair Globalization as amended in 2022, in particular with regard to:

(a) decent working conditions for all, with regard to, _inter alia_, wages and earnings, working

hours, other conditions of work and social protection; and

(b) social dialogue on labour matters among workers and employers and their respective

organisations, and with relevant governmental authorities.

7. Consistently with its commitments under the ILO, each Party shall:

(a) adopt and implement measures and policies regarding occupational safety and health; and

(b) maintain a labour inspection system in accordance with the relevant ILO standards on labour

inspection.

ARTICLE 26.17

Forced or compulsory labour

1. Recalling that the elimination of forced labour is among the objectives of the Agenda 2030,

the Parties underline the importance of the ratification and the effective implementation of the

Protocol of 2014 to the Forced Labour Convention 1930, adopted at Geneva, on 11 June 2014.

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2. The Parties recognise the goal of eliminating all forms of forced or compulsory labour,

including forced or compulsory child labour.

3. Consequently, the Parties shall identify opportunities for cooperation, sharing information,

experiences and good practices related to the elimination of all forms of forced or compulsory

labour.

ARTICLE 26.18

Cooperation on trade and labour issues

Consistently with Article 26.7, the Parties shall consult and cooperate, as appropriate, bilaterally

and in the context of the ILO, on trade-related labour issues of mutual interest, including, but not

limited to:

(a) job creation and the promotion of productive, high quality employment, including policies to

generate job-rich growth and promote sustainable enterprises and entrepreneurship;

(b) promotion of improvements in business and labour productivity, particularly in respect of

small and medium-sized enterprises;

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(c) human capital development, access to labour market and the enhancement of employability,

in particular of young people, including through lifelong learning and vocational training,

continuous education, training and the development and upgrading of skills, including in

emerging and environmental industries;

(d) work-life balance and innovative workplace practices to enhance workers' well-being;

(e) promotion of the awareness of the ILO Decent Work Agenda, including on the inter-linkages

between trade and full and productive employment, labour market adjustment, core labour

standards, decent work in global supply chains, social protection and social inclusion, social

dialogue and gender equality;

(f) promotion of decent quality jobs through trade, including the safety and health at work of

pregnant workers and workers who have recently given birth;

(g) occupational safety and health and labour inspection, for example, improving compliance and

enforcement mechanisms;

(h) addressing the challenges and opportunities of a diverse, multigenerational workforce,

including by way of:

(i) promotion of equality and elimination of discrimination in respect of employment and

occupation; and

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(ii) protection of vulnerable workers;

(i) improving labour relations, for example, best practice in alternative dispute resolution and

tripartite consultation;

(j) the implementation of fundamental, priority and other up-to-date ILO Conventions, as well as

the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social

Policy, and the UN Guiding Principles on Business and Human Rights; and

(k) labour statistics.

SECTION D

INSTITUTIONAL ARRANGEMENTS

ARTICLE 26.19

Sub-Committee on Trade and Sustainable Development and contact points

1. The Sub-Committee on Trade and Sustainable Development ("Sub-Committee"), established

pursuant to Article 33.4(1), shall be composed, for Chile, of officials from the institutions

responsible for trade, labour, environment and gender issues.

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2. The Sub-Committee shall have specific sessions for environmental and labour matters **[1]**,

respectively, as well as for cross-cutting issues related to trade and sustainable development.

3. The functions of the Sub-Committee shall be to:

(a) facilitate, monitor and review the implementation of this Chapter;

(b) determine, organize, oversee and assess the cooperation activities laid down in this Chapter,

including exchange of information and experience on areas of mutual interest;

(c) report and make recommendations to the Trade Committee on any matter related to this

Chapter, including with regard to topics for discussion with the civil society mechanisms

referred to in Article 33.5;

(d) carry out the tasks referred to in Articles 26.21 and 26.22;

(e) coordinate with other Sub-Committees established under this Agreement, as appropriate,

including as regards the efforts to integrate gender-related issues, considerations and activities

in their work as referred to in Article 27.4(8); and

(f) carry out any other functions as the Parties may agree.

**1** The environmental and labour matters can be discussed in isolated sessions or in consecutive

sessions.

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4. The Sub-Committee, as mutually agreed, may consult or seek the advice of relevant

stakeholders or experts on matters relating to the implementation of this Chapter.

5. The Sub-Committee shall, by consensus, prepare a report on each meeting and shall publish it

after the meeting.

6. Each Party shall designate a contact point within its administration to facilitate

communication and coordination between the Parties on any matter relating to the implementation

of this Chapter. For Chile, specific contact points for labour, environmental and gender matters

shall be within its Undersecretariat of International Economic Relations of the Ministry of Foreign

Affairs or its successor. Each Party shall promptly notify the other Party of its contact points and

provide their contact information.

7. The contact points shall:

(a) facilitate regular communication and coordination between the Parties;

(b) notwithstanding Article 33.3(2) assist the Sub-Committee including establishing the agenda

and conducting all other necessary preparations for the meetings of the Sub-Committee.

(c) communicate with their respective civil society, as appropriate; and

(d) work together, including with other appropriate bodies of their administrations, to develop

and implement cooperative activities.

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ARTICLE 26.20

Dispute resolution

1. The Parties shall make all possible efforts through dialogue, exchange of information and

cooperation to address any disagreement between the Parties regarding the interpretation or

application of this Chapter.

2. In case of a disagreement between the Parties regarding the interpretation or application of

this Chapter, the Parties shall have recourse exclusively to the dispute resolution procedures

established pursuant to Articles 26.21 and 26.22.

ARTICLE 26.21

Consultations

1. A Party ("the requesting Party") may, at any time, request consultations with the other Party

("the responding Party") regarding any matter arising regarding the interpretation or application of

this Chapter by delivering a written request to the contact point of the responding Party. The request

shall set out the reasons for requesting consultations, including a sufficiently specific description of

the matter at issue and the provisions of this Chapter that it considers applicable.

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2. The responding Party shall, unless agreed otherwise with the requesting Party, reply in writing

no later than 10 days after the date of receipt of the request.

3. The Parties shall begin consultations no later than 30 days after the date of receipt of the

request by the responding Party, unless the Parties agree otherwise.

4. The consultations may be held in person or by any technological means available to the

Parties. If consultations are held in person, they shall be held in the territory of the responding

Party, unless the Parties agree otherwise.

5. In the consultations the Parties shall:

(a) provide sufficient information to enable a full examination of the matter; and

(b) treat any information exchanged in the course of the consultations confidentially.

6. The Parties shall enter into consultations with the aim of reaching a mutually satisfactory

resolution of the matter, taking into account opportunities for cooperation related to the matter. In

respect of matters related to the multilateral agreements referred to in this Chapter, the Parties shall

consider information from the ILO or relevant bodies established under those agreements. Where

relevant, the Parties may agree to seek advice from such organisations or bodies, or any other expert

or body they deem appropriate to assist them in the consultations.

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7. If the Parties are unable to resolve the matter within 60 days of the delivery of the written

request for consultations pursuant to paragraph 1, each Party may, by delivering a written request to

the contact point of the other Party, request that the Sub-Committee be convened to consider the

matter. The Sub-Committee shall convene promptly and endeavour to agree on a resolution of the

matter.

8. Each Party or the Sub-Committee convened pursuant to paragraph 7 may, if appropriate, seek

the views of the Domestic Consultative Groups referred to in Article 33.6 or other expert advice.

9. If the Parties are able to resolve the matter, they shall document the outcome including, if

appropriate, specific steps and timelines agreed upon. The Parties shall make the outcome available

to the public, unless they agree otherwise.

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ARTICLE 26.22

Panel of experts

1. If the Parties fail to resolve the matter within 60 days of the delivery of a written request to

convene the Sub-Committee as referred to in Article 26.21(7) or, if no such request is made, within

120 days of the delivery of a written request for consultations pursuant to Article 26.21(1), the

requesting Party may request the establishment of a panel of experts to examine the matter. Any

such request shall be made in writing to the contact point of the responding Party. The request shall

identify the reasons for requesting the establishment of a panel of experts, including a sufficiently

specific description of the matter at issue, and explain how that matter constitutes a breach of

specific provisions of this Chapter.

2. Except as otherwise provided for in this Article, Articles 31.6, 31.10, 31.13, 31.14(1), 31.15,

31.19, 31.20(2), 31.21, 31.22, 31.24, 31.32, 31.33, 31.34, 31.35, as well as the Rules of Procedure

in Annex 31-A and the Code of Conduct in Annex 31-B shall apply _mutatis mutandis_ .

3. The Sub-Committee shall, at its first meeting, recommend to the Trade Committee the

establishment of at least 15 individuals who are willing and able to serve on the panel of experts.

Based on this recommendation, the Trade Committee shall no later than one year after entry into

force of this Agreement establish a list of such individuals. The list shall be composed of

three sub-lists:

(a) one sub-list of individuals established on the basis of proposals by the European Union;

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(b) one sub-list of individuals established on the basis of proposals by Chile; and

(c) one sub-list of individuals who are not nationals of either Party and who shall serve as

chairperson to the panel of experts.

4. Each sub-list shall include at least five individuals. The Trade Committee shall ensure that the

list is kept up to date and that it is maintained at that minimum number of individuals.

5. The individuals referred to in paragraph 3 shall have specialised knowledge of or expertise in

labour or environmental law, issues addressed in this Chapter, or the resolution of disputes arising

under international agreements. They shall be independent, serve in their individual capacities and

not take instructions from any organisation or government with regard to issues related to the

disagreement, or be affiliated with the government of any Party, and shall comply with the Code of

Conduct in Annex 31-B.

6. When the panel of experts is composed according to the procedures set out in Article 31.6(3),

(4) and (6), the experts shall be selected from the relevant sub-lists referred to in paragraph 3 of this

Article.

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7. Unless the Parties agree otherwise within five days of the date of establishment of the panel of

experts the terms of reference shall be:

"to examine, in the light of the relevant provisions of Chapter 26 of the Interim Agreement on Trade

between the European Union, of the one part, and the Republic of Chile, of the other part, the matter

referred to in the request for the establishment of the panel of experts, and to issue a report, in

accordance with Article 26.23 of that Agreement, with its findings and recommendations for the

resolution of the matter".

8. With regard to matters related to multilateral agreements referred to in this Chapter, the panel

of experts should seek information from the ILO or relevant bodies established under those

agreements, including any pertinent available interpretative guidance, findings or decisions adopted

by the ILO and those bodies. Any such information shall be provided to both Parties for their

comments.

9. The panel of experts shall interpret the provisions of this Chapter in accordance with the

customary rules of interpretation of public international law, including those codified in the Vienna

Convention on the Law of Treaties.

10. The panel of experts shall issue to the Parties an interim report and a final report setting out

the findings of facts, the applicability of the relevant provisions and the rationale behind any

findings, conclusions and the recommendations it makes.

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11. The panel of experts shall deliver to the Parties the interim report within 100 days after the

date of establishment of the panel of experts. If the panel of experts considers that this time limit

cannot be met, the chairperson of the panel of experts shall notify the Parties in writing, stating the

reasons for the delay and the date on which the panel of experts plans to deliver its interim report.

The time limit set out in this paragraph may be extended by mutual agreement of the Parties.

12. A Party may deliver to the panel of experts a reasoned request to review particular aspects of

the interim report within 25 days after the delivery of the interim report. A Party may comment on

the other Party's request within 15 days of the delivery of the request.

13. After considering the request and comments, the panel of experts shall prepare the final

report. If no request to review particular aspects of the interim report is delivered within the time

period referred to in paragraph 11, the interim report shall become the final report of the panel of

experts.

14. The panel of experts shall deliver its final report to the Parties within 175 days of the date of

establishment of that panel. If the panel of experts considers that this time limit cannot be met, the

chairperson of the panel shall notify the Parties in writing, stating the reasons for the delay and the

date on which the panel of experts plans to deliver its final report. The time limit set out in this

paragraph may be extended by mutual agreement of the Parties.

15. The final report shall include a discussion of any written request by the Parties on the interim

report and clearly address any comments provided by the Parties.

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16. The Parties shall make the final report available to the public within 15 days of its delivery by

the panel of experts.

17. If the panel of experts finds in the final report that a Party has not conformed with its

obligations under this Chapter, the Parties shall discuss appropriate measures to be implemented

taking into account the report and recommendations of the panel of experts. The responding Party

shall inform its Domestic Consultative Group referred to in Article 33.6 and the other Party of its

decisions on any actions or measures to be implemented no later than three months after the report

has been made publicly available.

18. The Sub-Committee shall monitor the follow-up to the final report and recommendations of

the panel of experts. The Domestic Consultative Groups referred to in Article 33.6 may submit

observations to the Sub-Committee in this regard.

ARTICLE 26.23

Review

1. For the purpose of enhancing the achievement of the objectives of this Chapter, the Parties

shall discuss through the meetings of the Sub-Committee its effective implementation, taking into

account, _inter alia_, major policy developments in each Party and developments in international

agreements.

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2. Taking into account the outcome of such discussions, a Party may request the review of this

Chapter at any time after the date of entry into force of this Agreement. For this purpose, the

Sub-Committee may recommend to the Parties amendments of the relevant provisions of this

Chapter in accordance with the amendment procedure established in Article 33.9(1).

CHAPTER 27

TRADE AND GENDER EQUALITY

ARTICLE 27.1

Context and objectives

1. The Parties agree on the importance of incorporating a gender perspective into the promotion

of inclusive economic growth, and on the key role that gender-responsive policies can play in this

regard. This includes removing barriers to women's participation in the economy and international

trade, including improving equal opportunities of access to work functions and sectors for men and

women in the labour market.

2. The Parties acknowledge that international trade and investment are engines of economic

growth and also recognise the important contribution of women to economic growth through their

participation in economic activity, including business and international trade.

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3. The Parties recognise that women's participation in international trade can contribute to

advancing their economic empowerment and economic independence. Furthermore, women's

access to, and ownership of, economic resources contribute to sustainable and inclusive economic

growth, prosperity, competitiveness, and the well-being of society. Accordingly, the Parties

underline their intention to implement this Agreement in a manner that promotes and enhances

equality between men and women.

4. The Parties recall the United Nations 2030 Agenda for Sustainable Development and the

Goals pertaining to trade and gender equality, in particular Goal 5: achieve gender equality and

empower all women and girls.

5. The Parties recall the objectives of the Joint Declaration on Trade and Women's Economic

Empowerment on the Occasion of the WTO Ministerial Conference held in Buenos Aires in

December 2017.

6. The Parties recall their commitments on mainstreaming gender equality and the empowerment

of women and girls as well as the respect for democratic principles and human rights and

fundamental freedoms, as set out in the Universal Declaration of Human Rights, adopted by the

UN General Assembly on 10 December 1948 and other relevant international human rights

instruments related to gender equality to which they are party.

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7. The Parties reaffirm their commitments under the Beijing Declaration and Platform for

Action, adopted at the Fourth World Conference of Women, held in Beijing from 4

to 15 September 1995, noting in particular the objectives and provisions related to women's equal

access to resources, employment, markets and trade.

8. The Parties reaffirm the importance of inclusive trade policies which contribute to the

promotion of equal rights, treatment and opportunities between men and women as well as to the

elimination of all forms of discrimination against women.

9. The Parties emphasise the role of the private sector in fostering gender equality by applying

non-discrimination and diversity policies in their corporate operations in line with international

guidelines and standards endorsed or supported by the Parties.

10. The Parties aim to:

(a) enhance their trade relations, cooperation and dialogue in ways that are conducive to equal

opportunities and treatment for women and men, as workers, producers, traders or consumers,

in accordance with their international commitments.

(b) facilitate cooperation and dialogue with the aim of enhancing women's capacity, conditions

and access to opportunities created by trade.

(c) further improve their capacities to address trade-related gender issues, including through

exchange of information and best practices.

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ARTICLE 27.2

Multilateral agreements

1. Each Party reaffirms its commitment to effectively implement its obligations under the

Convention on the Elimination of All Forms of Discrimination Against Women, adopted by the

UN General Assembly on 18 December 1979, noting in particular those provisions related to

eliminating discrimination against women in economic life and in the field of employment.

2. The Parties recall their respective obligations under Article 26.16 of this Agreement regarding

the ILO Conventions related to gender equality and the elimination of discrimination in respect of

employment and occupation ratified by Member States and Chile.

3. Each Party reaffirms its commitment to effectively implement its obligations under other

multilateral agreements to which it is party addressing gender equality or women's rights.

ARTICLE 27.3

General provisions

1. The Parties recognise the right of each Party to establish its own scope and guarantees of

equal opportunities for men and women and to adopt or modify accordingly its relevant laws and

policies, consistent with its commitments under international agreements referred to in Article 27.2.

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2. Each Party shall strive to ensure that its relevant laws and policies provide for, and promote

equal rights, treatment and opportunities between men and women, in accordance with its

international commitments. Each Party shall strive to improve such laws and policies.

3. Each Party shall endeavour to gather sex-disaggregated data related to trade and gender with a

view to better understanding the different impacts of trade policy instruments on women and men in

their roles as workers, producers, traders or consumers.

4. Each Party shall promote in its territory public awareness of its laws and policies related to

gender equality, including their impact on and relevance for inclusive economic growth and for

trade policy.

5. Each Party shall, when relevant, take into account the objective of equality between men and

women when formulating, implementing and reviewing measures in the areas covered under this

Agreement.

6. Each Party shall encourage trade and investment by promoting equal opportunities and the

participation of women and men in the economy and international trade. This includes, _inter alia_,

measures that aim at: progressively eliminating all types of discrimination on grounds of sex;

promoting the principle of equal pay for work of equal value in order to address the gender pay gap

and facilitating that women are not discriminated in employment and occupation, including for

reasons of pregnancy and maternity.

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7. A Party shall not weaken or reduce the protection granted under its respective laws aimed at

ensuring gender equality or equal opportunities for women and men, in order to encourage trade or

investment.

8. A Party shall not waive or otherwise derogate from, or offer to waive or otherwise derogate

from, its respective laws aimed at ensuring gender equality or equal opportunities for women and

men, in a manner that weakens or reduces the protection granted pursuant to those laws, in order to

encourage trade or investment.

9. A Party shall not fail to effectively enforce, through a sustained or recurring course of action

or inaction, the protection granted under its respective laws aimed at ensuring gender equality or

equal opportunities for women and men in a manner affecting trade or investment.

ARTICLE 27.4

Cooperation activities

1. The Parties acknowledge the benefits of sharing their respective experiences in designing,

implementing, monitoring and strengthening trade-related aspects of gender equality measures.

2. In accordance with paragraph 1, the Parties shall carry out cooperation activities designed to

improve the capacity and conditions for women, including workers, businesswomen and

entrepreneurs, to access and fully benefit from the opportunities created by this Agreement.

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3. Cooperation activities shall be carried out on issues and topics agreed upon by the Parties.

4. Cooperation activities can be developed and implemented with the participation of the UN,

WTO, ILO, OECD and other international organisations as well as with third countries, businesses,

employers' and workers' organisations, education and research organisations and other non

governmental organisations, as appropriate.

5. Areas of cooperation may include sharing experiences and best practices relating to policies

and programmes to encourage women's increased participation in international trade as well as

trade-related aspects of:

(a) the promotion of women's financial inclusion and education as well as access to financing and

financial assistance;

(b) the advancement of women's leadership and the development of women's networks;

(c) the promotion of women's full participation in the economy by encouraging their

participation, leadership and education, in particular in fields in which they are

underrepresented such as science, technology, engineering, mathematics (STEM), as well as

innovation and business;

(d) the promotion of gender equality within enterprises;

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(e) women's participation in decision-making positions in the public and private sectors;

(f) public and private initiatives aimed at the promotion of female entrepreneurship, including the

integration of women in the formal sector of the economy, enhancing the competitiveness of

women-led enterprises to allow them to participate and compete in local, regional, and global

value chains, and activities to promote the internationalisation of small and medium-sized

enterprises led by women;

(g) policies and programmes to improve women's digital skills and access to online business tools

and e-commerce platforms;

(h) the advancement of care policies and programmes as well as work-life balance measures with

a gender perspective;

(i) the exploration of the link between increased women's participation in international trade and

the reduction of the gender pay gap;

(j) the development of gender-based analysis of trade policies, including design, implementation

and monitoring of their effects;

(k) the collection of sex-disaggregated data, the use of indicators, monitoring and evaluation

methodologies, and the analysis of statistics related to trade from a gender perspective;

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(l) the exploration of linkages between women's participation in international trade and areas

such as decent work, occupational segregation, and working conditions of women, including

the safety and health at work of pregnant workers and workers who have recently given birth,

in line with subparagraph (f) of Article 26.18;

(m) policies and programs to prevent, mitigate and respond to the differentiated economic impact

that crises and emergencies have on women and men; and

(n) other issues as agreed by the Parties.

6. The priorities for cooperation activities shall be decided jointly by the Parties based on areas

of mutual interest and available resources.

7. Cooperation, including in the areas set out in paragraph 5, may be undertaken in person or by

any technological means available to the Parties, through activities such as: workshops, seminars,

conferences, collaborative programmes and projects; exchange of experiences, and sharing of best

practices on policies and procedures; and the exchange of experts.

8. Through the Sub-Committee on Trade and Sustainable Development established pursuant to

Article 33.4 (1), the Parties shall encourage efforts by the bodies established in this Agreement to

integrate gender-related issues, considerations and activities in their work.

9. The Parties shall encourage inclusive participation of women in the implementation of the

cooperation activities established pursuant to this Article, as appropriate.

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ARTICLE 27.5

Institutional arrangements

1. The Sub-Committee on Trade and Sustainable Development, established pursuant to Article

33.4(1) shall be responsible for the implementation of this Chapter. Article 26.19 shall apply to this

Chapter _mutatis mutandis_ **[1]** .

2. When interacting with the civil society in the Domestic Consultative Groups created or

designated pursuant to Article 33.6 and in the Civil Society Forum organised pursuant to

Article 33.7, the Parties shall encourage the participation of organisations promoting equality

between men and women.

ARTICLE 27.6

Dispute resolution

1. Articles 26.20, 26.21 and 26.22 apply to this Chapter _mutatis mutandis_ **[2]** .

**1** For greater certainty, any reference to Chapter 26, or to environmental and labour issues or
matters, in that Article shall be understood as referring to this Chapter, or gender issues or
matters, as applicable.
**2** For greater certainty, any reference to Chapter 26, or to environmental and labour issues,
matters or laws, in those Articles shall be understood as referring to this Chapter, or gender
issues, matters or laws related to these issues or matters, as applicable.

& /en 148

ARTICLE 27.7

Review

1. The Parties agree on the importance of monitoring and assessing, jointly or individually,

through their respective processes and institutions, as well as those set up under this Agreement the

impact of the implementation of this Agreement on equality between men and women and

opportunities provided for women in relation to trade.

2. The Parties may review this Chapter in light of the experience gained in its implementation

and if necessary, suggest how it may be strengthened.

CHAPTER 28

TRANSPARENCY

ARTICLE 28.1

Objective

1. The Parties, recognising the impact which their respective regulatory environments may have

on trade and investment between them, aim at providing a predictable regulatory environment and

efficient procedures for economic operators, especially small and medium-sized enterprises.

& /en 149

2. The Parties reaffirm their respective commitments under the WTO Agreement and in this

Chapter build on those commitments and lay down further arrangements for transparency.

ARTICLE 28.2

Definitions

For the purposes of this Chapter:

(a) "administrative decision" means a decision or action with legal effect that applies to a specific

person, good or service in an individual case and covers the failure to take an administrative

decision as provided for in the law of a Party; and

(b) "administrative ruling of general application" means an administrative ruling or interpretation

that applies to all persons and fact situations that fall generally within the ambit of that

administrative ruling or interpretation, and that establishes a norm of conduct, but does not

include:

(i) a determination or ruling made in an administrative or quasi-judicial proceeding that

applies to a particular person, good or service of the other Party in a specific case; or

(ii) a ruling that adjudicates with respect to a particular act or practice.

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ARTICLE 28.3

Publication

1. Each Party shall ensure that its laws, regulations, procedures, administrative rulings of general

application and judicial decisions with respect to any matter covered by this Agreement are

promptly published via an officially designated medium and, where feasible, by electronic means,

or otherwise made available in such a manner as to enable any person to become acquainted with

them.

2. Each Party shall provide an explanation of the objective of, and rationale for, its laws,

regulations, procedures, administrative rulings of general application and judicial decisions with

respect to any matter covered by this Agreement.

3. Each Party shall provide a reasonable period of time between the date of publication and the

date of entry into force of the laws and regulations with respect to any matter covered by this

Agreement, except where it is not possible on grounds of urgency. This paragraph does not apply to

administrative rulings of general application and judicial decisions.

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ARTICLE 28.4

Enquiries and provision of information

1. Each Party shall establish or maintain appropriate mechanisms for responding to enquiries

from any person regarding any laws or regulations with respect to any matter covered by this

Agreement.

2. Upon request of a Party, the other Party shall promptly provide information and respond to

enquiries pertaining to any laws or regulations whether in force or planned, with respect to any

matter covered by this Agreement, unless a specific mechanism is established under another

Chapter of this Agreement.

ARTICLE 28.5

Administrative proceedings

1. Each Party shall administer all laws, regulations, procedures and administrative rulings of

general application with respect to any matter covered by this Agreement in an objective, impartial

and reasonable manner.

& /en 152

2. If administrative proceedings relating to particular persons, goods or services of the other

Party are initiated in respect of the application of laws, regulations, procedures or administrative

rulings of general application, referred to in paragraph 1, each Party shall:

(a) endeavour to provide persons who are directly affected by administrative proceedings with

reasonable notice, in accordance with its laws and regulations, when proceedings are initiated,

including a description of the nature of the proceedings, a statement of the legal authority

under which the proceedings are initiated and a general description of any issue in question;

and

(b) afford such persons a reasonable opportunity to present facts and arguments in support of

their positions prior to any final administrative decision to the extent that time, the nature of

the proceedings and the public interest permit.

ARTICLE 28.6

Review and appeal

1. Each Party shall establish or maintain judicial, arbitral or administrative tribunals or

procedures, for the purpose of the prompt review and, if warranted, correction of administrative

decisions with respect to any matter covered by this Agreement.

& /en 153

2. Each Party shall ensure that its judicial, arbitral or administrative tribunals carry out

procedures for appeal or review in a non-discriminatory and impartial manner. Such tribunals shall

be impartial and independent of the authority entrusted with administrative enforcement powers and

shall not have any interest in the outcome of the matter.

3. With respect to the tribunals or procedures referred to in paragraph 1, each Party shall ensure

that the parties before such tribunals or to such proceedings are provided with:

(a) a reasonable opportunity to support or defend their respective positions; and

(b) a decision based on the evidence and submissions of records or, where required by its law, the

records compiled by the relevant authority.

4. Each Party shall ensure that the decision referred to in subparagraph (b) of paragraph 3 is

implemented by the authority entrusted with administrative enforcement powers, subject to appeal

or further review as provided for in its laws and regulations.

ARTICLE 28.7

Relation to other Chapters

The provisions set out in this Chapter apply in addition to the specific rules set out in other

Chapters.

& /en 154

CHAPTER 29

GOOD REGULATORY PRACTICES

ARTICLE 29.1

Scope

1. This Chapter applies to regulatory measures adopted or initiated by regulatory authorities in

respect to any matter covered by this Agreement.

2. This Chapter does not apply to regulatory authorities and regulatory measures, practices or

approaches of the Member States.

ARTICLE 29.2

General principles

1. The Parties recognise the importance of:

(a) using good regulatory practices in the process of planning, designing, issuing, implementing,

evaluating and reviewing regulatory measures for achieving domestic policy objectives; and

& /en 155

(b) maintaining and enhancing the benefits of this Agreement to facilitate trade in goods and

services and increasing investment between the Parties.

2. Each Party shall be free to determine its approach to good regulatory practices under this

Agreement in a manner consistent with its own legal framework, practice and fundamental

principles, including the precautionary principle, underlying its regulatory system.

3. Nothing in this Chapter shall be construed to require a Party to:

(a) deviate from domestic procedures for preparing and adopting regulatory measures;

(b) take actions that would undermine or impede the timely adoption of regulatory measures to

achieve its public policy objectives; or

(c) achieve any particular regulatory outcome.

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ARTICLE 29.3

Definitions

For the purposes of this Chapter:

(a) "regulatory authority" means:

(i) for the European Union: the European Commission; and

(ii) for Chile: any regulatory authority of the executive branch; and

(b) "regulatory measures" means:

(i) for the European Union:

(A) regulations and directives, as provided for in Article 288 of the Treaty on the

Functioning of the European Union; and

(B) implementing and delegated acts, as provided for in Article 290 and Article 291

Treaty on the Functioning of the European Union, respectively; and

(ii) for Chile: laws and decrees of general application that are adopted by the regulatory

authorities and compliance with which is mandatory **[1]** .

**1** According to paragraph II.1 of presidential instruction N° 3 of 2019 and its modifications.

& /en 157

ARTICLE 29.4

Internal coordination of regulatory development

Each Party shall maintain internal coordination or review processes or mechanisms for the

preparation, evaluation and review of regulatory measures. Such processes or mechanisms should

seek, _inter alia_, to:

(a) foster good regulatory practices, including those set out in this Chapter;

(b) identify and avoid unnecessary duplication and inconsistent requirements in the Party's

regulatory measures;

(c) ensure compliance with the international trade obligations of the Party; and

(d) promote the consideration of the impact of the regulatory measures under preparation,

including the impact on small and medium-sized enterprises.

& /en 158

ARTICLE 29.5

Transparency of the regulatory processes and mechanisms

Each Party shall make publicly available description, in accordance with its respective rules and

procedures, of the processes and mechanisms used by its regulatory authority to prepare, evaluate or

review regulatory measures. These descriptions shall refer to relevant guidelines, rules or

procedures, including those allowing the public to provide comments.

ARTICLE 29.6

Early information on planned regulatory measures

1. Each Party shall endeavour to publish on an annual basis, in accordance with its respective

rules and procedures, information on planned major **[1]** regulatory measures.

2. With respect to each major regulatory measure referred to in paragraph 1, each Party shall

endeavour to make publicly available, in a timely manner:

(a) a brief description of its scope and objectives; and

**1** The regulatory authority of each Party may determine what constitutes a major regulatory
measure for the purposes of its obligations under this Chapter.

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(b) if available, the estimated timing for its adoption, including, where applicable, opportunities

for public consultations.

ARTICLE 29.7

Public consultations

1. When preparing a major **[1]** regulatory measure, each Party shall, if applicable, in accordance

with its respective rules and procedures:

(a) publish a draft regulatory measure or consultation documents providing sufficient details

about the regulatory measure under preparation to allow any person **[2]** to assess whether and

how the person's interests might be significantly affected;

(b) offer reasonable opportunities for any person, on a non-discriminatory basis, to provide

comments; and

(c) consider the comments received.

**1** The regulatory authority of each Party may determine what constitutes a major regulatory
measure for the purposes of its obligations under this Chapter.
**2** For greater certainty, this paragraph does not prevent a Party from undertaking targeted
consultations with interested persons under conditions defined by its rules and procedures.

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2. The regulatory authority of each Party should make use of electronic means of

communication and seek to maintain a dedicated electronic portal for the purpose of providing

information and receiving comments related to public consultations.

3. The regulatory authority of each Party shall endeavour to make publicly available a summary

of the results of the consultations or any comments received, except to the extent necessary to

protect confidential information or withhold personal data or inappropriate content.

ARTICLE 29.8

Impact assessment

1. Each Party shall promote that its regulatory authority, in accordance with the applicable rules

and procedures, carries out an impact assessment of the major regulatory measures it is preparing.

2. When carrying out an impact assessment, the regulatory authority of each Party shall promote

processes and mechanisms that consider the following factors:

(a) the need for the regulatory measure, including the nature and the significance of the problem

the regulatory measure intends to address;

(b) feasible and appropriate regulatory and non-regulatory alternatives, if any, that would achieve

the Party's public policy objective, including the option of not regulating;

& /en 161

(c) to the extent possible and relevant, the potential social, economic and environmental impact

of those alternatives, including on international trade and on small and medium-sized

enterprises; and

(d) how the options under consideration relate to relevant international standards, if any,

including the reason for any divergence, where appropriate.

3. With respect to any impact assessment that a regulatory authority has conducted for a

regulatory measure, that regulatory authority shall prepare a final report detailing the factors it

considered in its assessment and the relevant findings. Such report shall be made publicly available

when the regulatory measure concerned is made publicly available.

ARTICLE 29.9

Retrospective evaluation

The Parties recognise the positive contribution of periodic retrospective evaluations of existing

regulatory measures in effect to reducing unnecessary regulatory burden, including on small and

medium-sized enterprises, and to achieving public policy objectives more effectively. The Parties

shall endeavour to promote the use of periodic retrospective evaluations in their regulatory systems.

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ARTICLE 29.10

Regulatory register

Each Party shall ensure that regulatory measures that are in effect are published in a designated

register that identifies regulatory measures by topic and that is publicly available on a single and

freely accessible website. The website should allow searches for regulatory measures by citations or

by word. Each Party shall periodically update its register.

ARTICLE 29.11

Cooperation and exchange of information

The Parties may cooperate in order to facilitate the implementation of this Chapter. This

cooperation may include the organisation of any relevant activities to strengthen cooperation

between their regulatory authorities and the exchange of information on the regulatory practices set

out in this Chapter.

& /en 163

ARTICLE 29.12

Contact points

Each Party shall designate a contact point to facilitate the exchange of information between the

Parties, within one month after the entry into force of this Agreement.

ARTICLE 29.13

Non-application of dispute settlement

Chapter 31 does not apply to this Chapter.

& /en 164

CHAPTER 30

SMALL AND MEDIUM-SIZED ENTERPRISES

ARTICLE 30.1

Objectives

The Parties recognise the importance of small and medium-sized enterprises ("SMEs") in their

bilateral trade and investment relations and affirm their commitment to enhance the ability of SMEs

to benefit from this Agreement.

ARTICLE 30.2

Information sharing

1. Each Party shall establish or maintain a publicly accessible SMEs-specific website that

contains information regarding this Agreement, including:

(a) a summary of this Agreement; and

& /en 165

(b) information designed for SMEs that contains:

(i) a description of the provisions in this Agreement that each Party considers to be

relevant to SMEs of both Parties; and

(ii) any additional information that the Party considers would be useful for SMEs interested

in benefitting from the opportunities provided by this Agreement.

2. Each Party shall include on the website provided for in paragraph 1 an internet link to the:

(a) text of this Agreement, including Annexes and Appendices, in particular tariff schedules, and

product-specific rules of origin;

(b) equivalent website of the other Party; and

(c) websites of its own authorities that the Party considers would provide useful information to

persons interested in trading and doing business in that Party.

3. Each Party shall include on the website provided for in paragraph 1 an internet link to

websites of its own authorities with information related to the following:

(a) customs regulations and procedures for importation, exportation and transit as well as relevant

forms, documents and other information required;

& /en 166

(b) regulations and procedures concerning intellectual property rights, including geographical

indications;

(c) technical regulations including, where necessary, obligatory conformity assessment

procedures and links to lists of conformity assessment bodies, in cases where third party

conformity assessment is obligatory, as provided for in Chapter 9;

(d) sanitary and phytosanitary measures relating to importation and exportation as provided for in

Chapter 6;

(e) rules on public procurement, a database containing public procurement notices and other

relevant provisions of Chapter 21;

(f) company registration procedures; and

(g) other information which the Party considers may be of assistance to SMEs.

4. Each Party shall include on the website provided for in paragraph 1 an internet link to a

database that is electronically searchable by Harmonised System code and that includes the

following information with respect to access to its market:

(a) rates of customs duties and quotas, including most-favoured nation, rates concerning non

most-favoured-nation countries and preferential rates and tariff rate quotas;

& /en 167

(b) excise duties;

(c) taxes (such as value added tax);

(d) customs or other fees, including other product specific fees;

(e) rules of origin as provided for in Chapter 3;

(f) duty drawback, deferral, or other types of relief that reduce, refund, or waive customs duties;

(g) criteria used to determine the customs value of the good;

(h) other tariff measures;

(i) information needed for import procedures; and

(j) information related to non-tariff measures or regulations.

5. Each Party shall regularly, or when requested by the other Party, update the information and

links referred to in paragraphs 1 to 4 that it maintains on its website to ensure they are up-to-date

and accurate.

& /en 168

6. Each Party shall ensure that the information referred to in this Article is presented in an

adequate manner for the use of SMEs. Each Party shall endeavour to make such information

available in English.

7. A Party shall not apply any fee for access to the information provided pursuant to paragraphs

1 to 4 for any person of a Party.

ARTICLE 30.3

SMEs contact points

1. Each Party shall communicate to the other Party its SMEs contact point that will carry out the

functions listed in this Article. A Party shall notify the other Party promptly of any change in the

details of those contact points.

2. The SMEs contact points shall:

(a) ensure that SMEs' needs are taken into account in the implementation of this Agreement so

that SMEs of both Parties can take advantage of new opportunities under this Agreement;

(b) ensure that the information referred to in Article 30.2 is up-to-date and relevant for SMEs;

either Party may, through the SMEs contact point, suggest additional information that the

other Party may include in the information to be provided in accordance with Article 30.2;

& /en 169

(c) examine any matter relevant to SMEs in connection with the implementation of this

Agreement, including:

(i) exchanging information to assist the Trade Committee in its tasks to monitor and

–
implement the SMEs related aspects of this Agreement;

(ii) assisting Sub-Committees and other contact points established by this Agreement, in

considering matters of relevance to SMEs;

(d) report periodically on their activities, jointly or individually, to the Trade Committee for its

consideration; and

(e) consider any other matter arising under this Agreement pertaining to SMEs as the Parties may

agree.

3. SMEs contact points shall meet as necessary and shall carry out their work through the

communication channels agreed by the Parties, which may include electronic mail,

video-conferencing or other means.

4. SMEs contact points may seek to cooperate with experts and external organisations, as

appropriate, in carrying out their activities.

& /en 170

ARTICLE 30.4

Non-application of dispute settlement

Chapter 31 does not apply to this Chapter.

CHAPTER 31

DISPUTE SETTLEMENT

SECTION A

OBJECTIVE AND SCOPE

ARTICLE 31.1

Objective

The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and

settling any dispute between the Parties concerning the interpretation and application of this

Agreement with a view to reaching a mutually agreed solution.

& /en 171

ARTICLE 31.2

Scope

This Chapter applies with respect to any dispute between the Parties concerning the interpretation

and application of the provisions of this Agreement ("covered provisions"), unless otherwise

provided in this Agreement.

ARTICLE 31.3

Definitions

For the purposes of this Chapter and Annexes 31-A and 31-B:

(a) "complaining Party" means the Party that requests the establishment of panel pursuant to

Article 31.5 ; and

(b) “mediator” means an individual who has been selected as mediator in accordance with

Article 38.27;

(c) “panel” means a panel established pursuant to Article 38.6;

(d) “panellist” means a member of a panel; and

(e) “Party complained against” means the Party that is alleged to be in breach of a covered

provision.

& /en 172

SECTION B

CONSULTATIONS

ARTICLE 31.4

Consultations

1. The Parties shall endeavour to resolve any dispute referred to in Article 31.2 by entering into

consultations in good faith with a view to reaching a mutually agreed solution.

2. A Party shall seek consultations by means of a written request delivered to the other Party

identifying the measure at issue and the covered provisions that it considers applicable.

3. The Party to which the request for consultations is made shall reply to the request promptly,

but no later than 10 days after the date of delivery of the request for consultations. Consultations

shall be held within 30 days after the date of delivery of the request for consultations, and take

place, unless the Parties agree otherwise, in the territory of the Party to which the request is made.

The consultations shall be deemed concluded 46 days after the date of delivery of the request for

consultations, unless the Parties agree to continue consultations.

& /en 173

4. Consultations on matters of urgency, including those regarding perishable goods or seasonal

goods or services, shall be held within 15 days after the date of delivery of the request for

consultations. The consultations shall be deemed concluded 23 days after the date of delivery of the

request for consultations, unless the Parties agree to continue consultations.

5. During consultations, each Party shall provide sufficient factual information so as to allow a

complete examination of the manner in which the measure at issue could affect the application of

this Agreement. Each Party shall endeavour to ensure the participation of personnel of its competent

governmental authorities who have expertise in the matter subject to the consultations.

6. Consultations and, in particular, all information designated as confidential and positions taken

by a Party during consultations, shall be confidential, and without prejudice to the rights of each

Party in any further proceedings.

7. If the Party to which the request for consultations is made does not respond to the request

within 10 days after the date of its delivery, or if consultations are not held within the timeframes

laid down in paragraph 3 or 4 respectively, or if the Parties agree not to have consultations, or if

consultations have been concluded and no mutually agreed solution has been reached, the Party that

requested consultations may have recourse to Article 31.5.

& /en 174

SECTION C

PANEL PROCEDURES

ARTICLE 31.5

Initiation of panel procedures

1. If the Parties fail to resolve the matter through consultations as provided for in Article 31.4,

the Party that requested consultations may request the establishment of a panel.

2. The request for the establishment of a panel shall be made by means of a written request

delivered to the other Party. The complaining Party shall identify the measure at issue in its request,

specify the covered provisions that it considers applicable, and explain how that measure constitutes

a breach of the covered provisions in such a manner sufficient to present the legal basis for the

complaint clearly.

& /en 175

ARTICLE 31.6

Establishment of a panel

1. A panel shall be composed of three panellists.

2. Within 14 days after the date of delivery to the Party complained against of the request for the

establishment of a panel, the Parties shall consult with a view to agree on the composition of the

panel.

3. If the Parties do not agree on the composition of the panel within the time period provided for

in paragraph 2, each Party shall appoint a panellist from the sub-list of that Party established under

Article 31.8(1) within 10 days after the date of expiry of the time period provided for in paragraph

2. If the Party complained against does not appoint a panellist from its sub-list within that time

period, the co-chair of the Trade Committee of the complaining Party shall select by lot, within

five days after the date of expiry of that time period, the panellist from the sub-list of that Party. The

co-chair of the Trade Committee of the complaining Party may delegate such selection by lot of the

panellist.

& /en 176

4. If the Parties do not agree on the chairperson of the panel within the time period provided for

in paragraph 2, the co-chair of the Trade Committee of the complaining Party shall select by lot,

within 10 days after the date of expiry of that time period, the chairperson of the panel from the

sub-list of chairpersons established under subparagraph (c) of Article 31.8(1). The co-chair of the

Trade Committee from the complaining Party may delegate such selection by lot of the chairperson

of the panel.

5. The panel shall be deemed to be established 15 days after the date on which the three selected

panellists have notified the Parties their acceptance of the appointment in accordance with

Annex 31-A, unless the Parties agree otherwise. Each Party shall promptly make public the date of

establishment of the panel.

6. If any of the lists provided for in Article 31.8 have not been established or do not contain

sufficient names at the time a request is made pursuant to paragraph 3 or 4 of this Article, the

panellists shall be selected by lot from the individuals who have been formally proposed by one

Party or both Parties, in accordance with Annex 31-A.

& /en 177

ARTICLE 31.7

Choice of forum

1. If a dispute arises concerning a particular measure in alleged breach of an obligation under

this Agreement and a substantially equivalent obligation under another international agreement to

which both Parties are party, including the WTO Agreement, the Party seeking redress shall select

the forum in which to settle the dispute.

2. Once a Party has selected the forum and initiated dispute settlement procedures under this

Section or under another international agreement with respect to the particular measure referred to

in paragraph 1, that Party shall not initiate dispute settlement procedures under that other

international agreement or this Section, respectively, unless the forum first selected fails to make

findings for procedural or jurisdictional reasons.

3. For the purposes of this Article:

(a) dispute settlement procedures under this Section are deemed to be initiated by a Party's

request for the establishment of a panel pursuant to Article 31.5;

(b) dispute settlement procedures under the WTO Agreement are deemed to be initiated by a

Party's request for the establishment of a panel pursuant to Article 6 of the Understanding on

Rules and Procedures Governing the Settlement of Disputes, contained in Annex 2 to the

WTO Agreement; and

& /en 178

(c) dispute settlement procedures under any other agreement are deemed to be initiated in

accordance with the relevant provisions of that agreement.

4. Without prejudice to paragraph 2, nothing in this Agreement shall preclude a Party from

suspending obligations authorised by the Dispute Settlement Body of the WTO or authorised under

the dispute settlement procedures of another international agreement to which the Parties are party.

The WTO Agreement or any other international agreement between the Parties shall not be invoked

to preclude a Party from suspending obligations pursuant to this Section.

ARTICLE 31.8

Lists of panellists

1. The Trade Committee shall, no later than one year after the date of entry into force of this

Agreement, establish a list of at least 15 individuals who are willing and able to serve as panellists.

The list shall be composed of three sub-lists:

(a) one sub-list of individuals established on the basis of proposals by the European Union;

(b) one sub-list of individuals established on the basis of proposals by Chile; and

(c) one sub-list of individuals who are not nationals of either Party and who shall serve as

chairperson of the panel.

& /en 179

2. Each sub-list shall include at least five individuals. The Trade Committee shall ensure that the

list is always maintained at this minimum number of individuals.

3. The Trade Committee may establish additional lists of individuals with expertise in specific

sectors covered by this Agreement. If the Parties so agree, such additional lists shall be used to

compose the panel in accordance with the procedure set out in Article 31.6.

ARTICLE 31.9

Requirements for panellists

1. Each panellist shall:

(a) have demonstrated expertise in law, international trade and other matters covered by this

Agreement;

(b) be independent of, and not be affiliated with or take instructions from, either Party;

(c) serve in their individual capacities and not take instructions from any organisation or

government with regard to matters related to the dispute; and

(d) comply with Annex 31-B.

& /en 180

2. The chairperson shall, in addition to fulfilling the requirements set out in paragraph 1, have

experience in dispute settlement procedures.

3. In view of the subject-matter of a particular dispute, the Parties may agree to derogate from

the requirements listed in subparagraph (a) of paragraph 1.

ARTICLE 31.10

Functions of the panel

The panel:

(a) shall make an objective assessment of the matter before it, including an objective assessment

of the facts of the case and the applicability of and conformity with the covered provisions;

(b) shall set out, in its decisions and reports, the findings of facts, the applicability of the covered

provisions and the basic rationale behind any findings and conclusions that it makes; and

(c) should consult regularly with the Parties and provide adequate opportunities for the

development of a mutually agreed solution.

& /en 181

ARTICLE 31.11

Terms of reference

1. Unless the Parties agree otherwise within five days after the date of establishment of the

panel, the terms of reference of the panel shall be:

"to examine, in the light of the relevant provisions of the Interim Agreement on Trade between the

European Union, of the one part, and the Republic of Chile, of the other part, cited by the Parties,

the matter referred to in the request for the establishment of the panel, to make findings on the

conformity of the measure at issue with the covered provisions of that Agreement and to deliver a

report in accordance with Article 31.13 of that Agreement".

2. If the Parties agree on other terms of reference than those set out in paragraph 1, they shall

notify the panel of the agreed terms of reference within the time period set out in paragraph 1.

ARTICLE 31.12

Decision on urgency

1. If a Party so requests, the panel shall decide, within 10 days after the date of its establishment,

whether the case concerns a matter of urgency.

& /en 182

2. In cases of urgency, the applicable time periods set out in this Section shall be half of the time

set out therein, except for the time periods referred to in Articles 31.6 and 31.11.

ARTICLE 31.13

Interim and final report

1. The panel shall deliver an interim report to the Parties within 90 days after the date of

establishment of the panel. If the panel considers that that deadline cannot be met, the chairperson

of the panel shall notify the Parties, stating the reasons for the delay and the date on which the panel

plans to deliver its interim report. The panel shall under no circumstances deliver its interim report

later than 120 days after the date of establishment of the panel.

2. Each Party may deliver to the panel a written request to review precise aspects of the interim

report within 10 days after the date of its delivery. A Party may comment on the other Party's

request within six days after the date of delivery of that request.

3. If no request is delivered pursuant to paragraph 2, the interim report shall become the final

report.

& /en 183

4. The panel shall deliver its final report to the Parties within 120 days after the date of

establishment of the panel. If the panel considers that that deadline cannot be met, the chairperson

of the panel shall notify the Parties, stating the reasons for the delay and the date on which the panel

plans to deliver its final report. The panel shall under no circumstances deliver its final report later

than 150 days after the date of establishment of the panel.

5. The final report shall include a discussion of any written request by the Parties on the interim

report and clearly address the comments of the Parties. The panel shall set out the following in the

interim and the final report:

(a) a descriptive section containing a summary of the arguments of the Parties and of the

comments referred to in paragraph 2;

(b) its findings on the facts of the case and on the applicability of the relevant covered provisions;

(c) its findings on whether the measure at issue is or is not in conformity with the relevant

covered provisions; and

(d) the reasons for the findings referred to in subparagraphs (b) and (c).

6. The final report shall be final and binding on the Parties.

& /en 184

ARTICLE 31.14

Compliance measures

1. The Party complained against shall take any measure necessary to comply promptly with the

final report in order to bring itself in compliance with the covered provisions.

2. The Party complained against shall, no later than 30 days after the date of delivery of the final

report, notify the complaining Party of any measure which it has taken or envisages to take to

comply with the final report.

ARTICLE 31.15

Reasonable period of time

1. If immediate compliance is not possible, the Party complained against shall, no later than

30 days after the date of delivery of the final report, notify the complaining Party of the length of

the reasonable period of time it will require for compliance. The Parties shall endeavour to agree on

the length of the reasonable period of time to comply with the final report.

& /en 185

2. If the Parties have not agreed on the length of the reasonable period of time, the complaining

Party may, no earlier than 20 days after the date of delivery of the notification referred to in

paragraph 1, request, in writing, the original panel to determine the length of the reasonable period

of time. The panel shall deliver its decision to the Parties within 20 days after the date of delivery of

the request.

3. The Party complained against shall, at least one month before the expiry of the reasonable

period of time, notify the complaining Party of its progress in complying with the final report.

4. The Parties may agree to extend the reasonable period of time.

ARTICLE 31.16

Compliance review

1. The Party complained against shall, no later than at the date of expiry of the reasonable period

of time referred to in Article 31.15, notify the complaining Party of any measure that it has taken to

comply with the final report.

& /en 186

2. When the Parties disagree on the existence or the consistency with the covered provisions of

any measure taken to comply, the complaining Party may deliver a request, in writing, to the

original panel to decide on the matter. The request shall identify any measure at issue and explain

how that measure constitutes a breach of the covered provisions in a manner sufficient to present

the legal basis for the complaint clearly. The panel shall deliver its decision to the Parties within

46 days after the date of delivery of the request.

ARTICLE 31.17

Temporary remedies

1. On request of, and after consultations with, the complaining Party, the Party complained

against shall present an offer for temporary compensation if:

(a) the Party complained against notifies the complaining Party that it is not possible to comply

with the final report;

(b) the Party complained against fails to notify any measure taken to comply or which it

envisages to take to comply, within the time period referred to in Article 31.14 or of any

measure taken to comply before the date of expiry of the reasonable period of time referred to

in Article 31.15;

(c) the panel finds that no measure taken to comply exists, in accordance with Article 31.16; or

& /en 187

(d) the panel finds that the measure taken to comply is inconsistent with the covered provisions,

in accordance with Article 31.16.

2. In any of the circumstances referred to in subparagraph (a), (b), (c) or (d) of paragraph 1, the

complaining Party may notify the Party complained against that it intends to suspend the obligations

set out in the covered provisions if:

(a) the complaining Party decides not to make a request pursuant to paragraph 1; or

(b) the complaining Party has made a request pursuant to paragraph 1 and the Parties do not agree

on the temporary compensation within 20 days after the date of expiry of the reasonable

period of time referred to in Article 31.15 or the delivery of the panel decision pursuant to

Article 31.16.

3. The complaining Party may suspend the obligations 10 days after the date of delivery of the

notification referred to in paragraph 2, unless the Party complained against has made a request

pursuant to paragraph 6.

4. The level of the suspension of obligations shall not exceed the level equivalent to the

nullification or impairment caused by the violation. The notification referred to in paragraph 2 shall

specify the level of intended suspension of obligations.

& /en 188

5. In considering which obligations to suspend, the complaining Party should first seek to

suspend the obligations in the same sector or sectors as those affected by the measure that the panel

has found to be inconsistent with the covered provisions. The suspension of obligations may be

applied to other sector or sectors covered by this Agreement than those in which the panel has

found nullification or impairment, in particular if the complaining Party is of the view that such

suspension in the other sector is practicable or effective in inducing compliance.

6. If the Party complained against considers that the notified level of intended suspension of

obligations exceeds the level equivalent to the nullification or impairment caused by the violation, it

may, before the expiry of the time period set out in paragraph 3, deliver a written request to the

original panel to decide on the matter. The panel shall deliver its decision on the level of the

suspension of obligations to the Parties within 30 days after the date of the request. The

complaining Party shall not suspend any obligations until the panel has delivered its decision. The

suspension of obligations shall be consistent with that decision.

7. The suspension of obligations, or the compensation referred to in this Article, shall be

temporary and shall not be applied after:

(a) the Parties have reached a mutually agreed solution pursuant to Article 31.32;

(b) the Parties have agreed that the measure taken to comply brings the Party complained against

into conformity with the covered provisions; or

& /en 189

(c) any measure taken to comply which the panel has found to be inconsistent with the covered

provisions has been withdrawn or amended so as to bring the Party complained against into

conformity with those provisions.

ARTICLE 31.18

Review of measures taken to comply after temporary remedies

1. The Party complained against shall notify the complaining Party of any measure it has taken

to comply following the suspension of obligations or following the application of temporary

compensation, as the case may be. With the exception of cases referred to in paragraph 2, the

complaining Party shall terminate the suspension of obligations within 30 days after the date of

delivery of that notification. In cases where compensation has been applied, and with the exception

of cases referred to in paragraph 2, the Party complained against may terminate the application of

such compensation within 30 days after the date of delivery of its notification that it has complied.

2. If the Parties do not reach an agreement on whether the measure notified according to

paragraph 1 brings the Party complained against into conformity with the covered provisions within

30 days after the date of delivery of that notification, the complaining Party shall deliver a written

request to the original panel to decide on the matter. The panel shall deliver its decision to the

Parties within 46 days after the date of the delivery of the request. If the panel finds that the

measure taken to comply is in conformity with the covered provisions, the suspension of obligations

or compensation, as the case may be, shall be terminated. If relevant, the complaining Party shall

adjust the level of suspension of obligations or of compensation in light of the panel decision.

& /en 190

3. If the Party complained against considers that the level of suspension implemented by the

complaining Party exceeds the level equivalent to the nullification or impairment caused by the

violation, it may deliver a written request to the original panel to decide on the matter.

ARTICLE 31.19

Replacement of panellists

If during panel procedures under this Section, a panellist is unable to participate, withdraws or

needs to be replaced because he or she does not comply with the requirements of Annex 31-B, a

new panellist shall be appointed in accordance with Article 31.6. The time period for the delivery of

a report or a decision referred to in this Section shall be extended for the time necessary for the

appointment of the new panellist.

ARTICLE 31.20

Rules of procedure

1. Panel procedures under this Section shall be governed by this Chapter and Annex 31-A.

2. Any hearing of the panel shall be open to the public unless otherwise provided for in

Annex 31-A.

& /en 191

ARTICLE 31.21

Suspension and termination

1. At the joint request of the Parties, the panel shall suspend its work at any time for a period

agreed by the Parties and not exceeding 12 consecutive months.

2. The panel shall resume its work before the end of the suspension period at the written request

of both Parties, or at the end of the suspension period at the written request of either Party. The

requesting Party shall notify the other Party accordingly. If a Party does not request the resumption

of the work of the panel at the end of the suspension period, the authority of the panel shall lapse

and the dispute settlement procedure shall be terminated.

3. If the work of the panel is suspended pursuant to this Article, the relevant time periods under

this Section shall be extended by the same period of time for which the work of the panel was

suspended.

ARTICLE 31.22

Right to seek information

1. At the request of a Party, or upon its own initiative, the panel may seek, from the Parties,

information it considers necessary and appropriate. The Parties shall respond promptly and fully to

any request by the panel for such information.

& /en 192

2. On request of a Party or its own initiative, the panel may seek information it considers

necessary and appropriate from any source. The panel also has the right to seek the opinion,

including information and technical advice, of experts, as it deems appropriate, and subject to any

terms and conditions agreed by the Parties, if applicable.

3. The panel shall consider _amicus curiae_ submissions from natural persons of a Party or

juridical persons established in a Party in accordance with Annex 31-A.

4. Any information obtained by the panel pursuant to this Article shall be disclosed to the Parties

and the Parties may provide comments on that information.

ARTICLE 31.23

Rules of interpretation

1. The panel shall interpret the covered provisions in accordance with customary rules of

interpretation of public international law, including those codified in the Vienna Convention on the

Law of Treaties.

2. The panel shall also take into account relevant interpretations in reports of WTO panels and

the Appellate Body adopted by the Dispute Settlement Body of the WTO.

3. Reports and decisions of the panel cannot add to or diminish the rights and obligations of the

Parties under this Agreement.

& /en 193

ARTICLE 31.24

Reports and decisions of the panel

1. The deliberations of the panel shall be kept confidential. The panel shall make every effort to

draft reports and take decisions by consensus. If this is not possible, the panel shall decide the

matter by majority vote. In no case shall separate opinions of panellists be disclosed.

2. Each Party shall make its submissions and the reports and decisions of the panel publicly

available, subject to the protection of confidential information.

3. The reports and decisions of the panel shall be accepted unconditionally by the Parties. They

shall not create any rights or obligations for persons.

4. The panel and the Parties shall treat as confidential any information submitted by a Party to

the panel in accordance with Annex 31-A.

& /en 194

SECTION D

MEDIATION MECHANISM

ARTICLE 31.25

Objective

1. The objective of the mediation mechanism is to facilitate the finding of a mutually agreed

solution through a comprehensive and expeditious procedure with the assistance of a mediator.

2. The mediation procedure may only be initiated by mutual agreement of the Parties in order to

explore mutually agreed solutions and consider any advice and proposed solutions by the mediator.

ARTICLE 31.26

Initiation of the mediation procedure

1. A Party ("the requesting Party") may at any time request the other Party ("the responding

Party") in writing to enter into a mediation procedure with respect to any measure of the responding

Party allegedly adversely affecting trade or investment between the Parties.

& /en 195

2. The request referred to in paragraph 1 shall be sufficiently detailed to present the concerns of

the requesting Party clearly and shall:

(a) identify the measure at issue;

(b) provide a statement of the adverse effects that the requesting Party considers the measure has,

or will have, on trade or investment between the Parties; and

(c) explain how the requesting Party considers that those effects are linked to the measure.

3. The responding Party shall give sympathetic consideration to the request and deliver its

written acceptance or rejection to the requesting Party within 10 days after the date of its delivery.

Otherwise the request shall be regarded as rejected.

ARTICLE 31.27

Selection of the mediator

1. The Parties shall endeavour to agree on a mediator within 14 days after the date of initiation

of the mediation procedure.

& /en 196

2. If the Parties are unable to agree on the mediator within the time period laid down in

paragraph 1 of this Article, either Party may request the co-chair of the Trade Committee of the

requesting Party to select the mediator by lot, within five days after the date of the request, from the

sub-list of chairpersons established pursuant to subparagraph (c) of Article 31.8(1). The co-chair of

the Trade Committee of the requesting Party may delegate such selection by lot of the mediator.

3. If the sub-list of chairpersons referred to in subparagraph (c) of Article 31.8(1) has not been

established at the time a request is made pursuant to Article 31.26, the mediator shall be selected by

lot from the individuals who have been formally proposed by one Party or both Parties for that

sub-list.

4. A mediator shall not be a national of either Party or employed by either Party, unless the

Parties agree otherwise.

5. A mediator shall comply with Annex 31-B.

& /en 197

ARTICLE 31.28

Rules of the mediation procedure

1. Within 10 days after the date of the appointment of the mediator, the requesting Party shall

deliver to the mediator and to the responding Party a detailed written description of its concerns, in

particular relating to the operation of the measure at issue and its possible adverse effects on trade

or investment. Within 20 days after the date of delivery of this description, the responding Party

may deliver written comments on that description. A Party may include any information that it

deems relevant in its description or comments.

2. The mediator shall assist the Parties in a transparent manner in bringing clarity to the measure

at issue and its possible adverse effects on trade or investment. In particular, the mediator may

organise meetings between the Parties, consult the Parties jointly or individually, seek the assistance

of, or consult with, relevant experts and stakeholders and provide any additional support requested

by the Parties. The mediator shall consult with the Parties before seeking the assistance of, or

consulting with, relevant experts and stakeholders.

3. The mediator may offer advice and propose a solution for the consideration of the Parties. The

Parties may accept or reject the proposed solution, or agree on a different solution. The mediator

shall not advise or comment on the consistency of the measure at issue with this Agreement.

4. The mediation procedure shall take place in the territory of the responding Party, or by mutual

agreement in any other location or by any other means.

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5. The Parties shall endeavour to reach a mutually agreed solution within 60 days after the date

of the appointment of the mediator. Pending a final agreement, the Parties may consider possible

interim solutions, in particular if the measure relates to perishable goods or seasonal goods or

services.

6. On request of either Party, the mediator shall deliver a draft factual report to the Parties,

providing:

(a) a brief summary of the measure at issue;

(b) the procedures followed; and

(c) if applicable, any mutually agreed solution reached, including possible interim solutions.

7. The mediator shall allow the Parties 15 days after the date of the delivery of the draft factual

report to comment on the draft factual report. After considering the comments of the Parties

received, the mediator shall, within 15 days of the receipt of the comments, deliver a final factual

report to the Parties. The draft and final factual reports shall not include any interpretation of this

Agreement.

8. The mediation procedure shall be terminated:

(a) by the adoption of a mutually agreed solution by the Parties, on the date of the notification

thereof to the mediator;

& /en 199

(b) by mutual agreement of the Parties at any stage of the procedure, on the date of the

notification of that agreement to the mediator;

(c) by a written declaration of the mediator, after consultation with the Parties, that further efforts

at mediation would be to no avail, on the date of the notification of that declaration to the

Parties; or

(d) by a written declaration of a Party after having explored mutually agreed solutions under the

mediation procedure and after having considered any advice and proposed solutions by the

mediator, on the date of the notification of that declaration to the mediator and the other Party.

ARTICLE 31.29

Confidentiality

Unless the Parties agree otherwise, all steps of the mediation procedure, including any advice or

proposed solution, are confidential. A Party may disclose to the public the fact that a mediation is

taking place.

& /en 200

ARTICLE 31.30

Relationship to dispute settlement procedures

1. The mediation procedure is without prejudice to the Parties' rights and obligations under

Sections B and C or dispute settlement procedures under any other agreement.

2. A Party shall not rely on, or introduce as evidence, in other dispute settlement procedures

under this Agreement or any other agreement, and a panel shall not take into consideration:

(a) positions taken by the other Party in the course of the mediation procedure or information

exclusively gathered under of Article 31.28(2);

(b) the fact that the other Party has indicated its willingness to accept a solution to the measure

subject to mediation; or

(c) advice given or proposals made by the mediator.

3. Unless the Parties agree otherwise, a mediator shall not serve as a panellist in dispute

settlement procedures under this Agreement or under any other agreement involving the same

matter for which he or she has been a mediator.

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SECTION E

COMMON PROVISIONS

ARTICLE 31.31

Request for information

1. Before a request for consultations or mediation is made pursuant to Article 31.4 or 31.26

respectively, a Party may request information from the other Party regarding a measure allegedly

adversely affecting trade or investment between the Parties. The Party to which such request is

made shall, within 20 days after the date of delivery of the request, deliver a written response with

its comments on the requested information.

2. If the Party to which the request is made considers it will not be able to deliver a response

within 20 days after the date of delivery of the request, it shall promptly notify the other Party,

stating the reasons for the delay and providing an estimate of the shortest period within which it will

be able to deliver its response.

3. A Party is normally expected to request information pursuant to paragraph 1 of this Article

before a request for consultations or mediation is made pursuant to Article 31.4 or 31.26

respectively.

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ARTICLE 31.32

Mutually agreed solution

1. The Parties may reach a mutually agreed solution at any time with respect to any dispute

referred to in Article 31.2.

2. If a mutually agreed solution is reached during the panel or mediation procedure, the Parties

shall jointly notify that solution to the chairperson of the panel or the mediator, respectively. Upon

such notification, the panel or mediation procedure shall be terminated.

3. Each Party shall take measures necessary to implement the mutually agreed solution

immediately or within the agreed time period, as applicable.

4. No later than at the expiry of the agreed time period the implementing Party shall inform the

other Party, in writing, of any measure that it has taken to implement the mutually agreed solution.

ARTICLE 31.33

Time periods

1. All time periods set out in this Chapter shall be counted from the day following the act to

which they refer.

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2. Any time period referred to in this Chapter may be modified by mutual agreement of the

Parties.

3. Under Section C, the panel may at any time propose to the Parties to modify any time period

referred to in this Chapter, stating the reasons for the proposal.

ARTICLE 31.34

Costs

1. Each Party shall bear its own expenses derived from the participation in the panel or

mediation procedure.

2. The Parties shall share jointly and equally the expenses derived from organisational matters,

including the remuneration and expenses of the panellists and of the mediator. The remuneration of

the panellists shall be determined in accordance with Annex 31-A. The rules on the remuneration of

the panellists laid down in Annex 31-A shall apply to mediators _mutatis mutandis_ .

ARTICLE 31.35

Amendment of Annexes

The Trade Council may adopt a decision to amend Annexes 31-A and 31-B, pursuant to

Article 33.1(6).

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CHAPTER 32

EXCEPTIONS

ARTICLE 32.1

General exceptions

1. For the purposes of Chapters 2, 4, 8, 10 **[1]**, 19 and 22 of this Agreement, Article XX of

GATT 1994, including its Notes and Supplementary Provisions, is incorporated into and made part

of this Agreement, _mutatis mutandis_ .

2. Subject to the requirement that such measures are not applied in a manner which would

constitute a means of arbitrary or unjustifiable discrimination between countries where like

conditions prevail, or a disguised restriction on investment liberalisation or trade in services,

nothing in Chapters 8, 10 **[2]**, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 **[3]** or 22 of this Agreement shall be

construed to prevent the adoption or enforcement by either Party of measures:

(a) necessary to protect public security or public morals or to maintain public order; **[4]**

**1** This provision shall not apply to Article 10.7..
**2** This provision shall not apply to Article 10.7..
**3** For greater certainty, nothing in this Article shall be construed as limiting the rights set out in
Annex 20.
**4** The exceptions set out in this subparagraph may be invoked only where a genuine and
sufficiently serious threat is posed to one of the fundamental interests of society.

& /en 205

(b) necessary to protect human, animal or plant life or health;

(c) necessary to secure compliance with laws or regulations which are not inconsistent with this

Agreement, including those relating to:

(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a

default on contracts;

(ii) the protection of privacy in relation to the processing and dissemination of personal

data, and the protection of the confidentiality of individual records and accounts; or

(iii) safety.

3. For greater certainty, the Parties understand that, to the extent that such measures are

inconsistent with the provisions of the Chapters of this Agreement referred to in paragraphs 1 and 2

of this Article:

(a) the measures referred to in subparagraph (b) of Article XX of GATT 1994 and in

subparagraph (b) of paragraph 2 of this Article include environmental measures which are

necessary to protect human, animal or plant life or health;

(b) subparagraph (g) of Article XX of GATT 1994 applies to measures relating to the

conservation of living and non-living exhaustible natural resources; and

& /en 206

(c) measures taken to implement multilateral environmental agreements can fall under

subparagraph (b) or (g) of Article XX of GATT 1994 or under subparagraph (b) of

paragraph 2 of this Article.

4. Before a Party applies any measure provided for in subparagraphs (i) and (j) of Article XX of

GATT 1994, that Party shall provide the other Party with all relevant information, with a view to

seeking a solution acceptable to the Parties. If an acceptable solution is not reached within 30 days

of the provision of the relevant information, the Party intending to apply the measure may do so.

Where exceptional and critical circumstances requiring immediate action prevent the prior

provision and examination of information, the Party intending to apply the measures may

immediately apply any precautionary measures necessary to address the situation. That Party shall

inform the other Party immediately of the application of such measures.

ARTICLE 32.2

Security exceptions

1. Nothing in this Agreement shall be construed:

(a) to require a Party to furnish or provide access to any information the disclosure of which it

considers contrary to its essential security interests; or

& /en 207

(b) to prevent a Party from taking any action which it considers necessary for the protection of its

essential security interests:

(i) connected to the production of or traffic in arms, ammunition and implements of war

and to such traffic and transactions in other goods and materials, services and

technology, and to economic activities, as carried out directly or indirectly for the

purposes of supplying a military establishment;

(ii) relating to fissionable and fusionable materials or the materials from which they are

derived; or

(iii) taken in time of war or other emergency in international relations; or

(c) to prevent a Party from taking any action pursuant to its obligations under the Charter of the

United Nations for the maintenance of international peace and security.

2. A Party shall inform the Trade Committee to the fullest extent possible of any action it takes

under subparagraphs (b) and (c) of paragraph 1 and of the termination of that action.

& /en 208

ARTICLE 32.3

Taxation

1. For the purposes of this Article:

(a) "residence" means residence for tax purposes;

(b) "tax agreement" means an agreement on the avoidance of double taxation or any other

international agreement or arrangement relating wholly or mainly to taxation to which any

Member State, the European Union or Chile is a party; and

(c) "taxation measure" means a measure applying the tax law of the European Union, of any

Member State, or of Chile.

2. This Agreement applies to taxation measures only insofar as their application is necessary to

give effect to the provisions of this Agreement.

3. Nothing in this Agreement shall affect the rights and obligations of either the European

Union, or its Member States or Chile under any tax agreement. In the event of any inconsistency

between this Agreement and any tax agreement, the tax agreement shall prevail to the extent of the

inconsistency. With regard to a tax agreement between the European Union or its Member States

and Chile, the relevant competent authorities, of the European Union or of its Member States, on

the one hand, and of Chile, on the other hand, under this Agreement and that tax agreement, shall

jointly determine whether an inconsistency exists between this Agreement and that tax agreement.

& /en 209

4. Any most-favoured-nation obligation under this Agreement shall not apply with respect to an

advantage accorded by the European Union, its Member States or Chile pursuant to a tax

agreement.

5. Subject to the requirement that such measures are not applied in a manner which would

constitute a means of arbitrary or unjustifiable discrimination between countries where like

conditions prevail, or a disguised restriction on trade and investment, nothing in this Agreement

shall be construed to prevent the adoption, maintenance or enforcement by a Party of any measure

aimed at ensuring the equitable or effective imposition or collection of direct taxes that:

(a) distinguishes between taxpayers who are not in the same situation, in particular with regard to

their place of residence or with regard to the place where their capital is invested; or

(b) aims at preventing the avoidance or evasion of taxes under a tax agreement or fiscal law of

that Party.

& /en 210

ARTICLE 32.4

Disclosure of information

1. Nothing in this Agreement shall be construed as requiring a Party to make available

confidential information, the disclosure of which would impede law enforcement or otherwise be

contrary to the public interest, or which would prejudice the legitimate commercial interests of

particular enterprises, public or private, except where a panel requires such confidential information

in dispute settlement proceedings under Chapter 31. In such cases, the panel shall ensure that

confidentiality is fully protected.

2. When a Party submits information considered confidential under its law to the Trade Council,

Trade Committee, Sub-Committees or other bodies established under this Agreement, the other

Party shall treat that information as confidential, unless the submitting Party agrees otherwise.

ARTICLE 32.5

WTO waivers

If an obligation under this Agreement is substantially equivalent to an obligation under the WTO

Agreement, any measure taken in conformity with a waiver adopted pursuant to Article IX of the

WTO Agreement shall be deemed to be in conformity with the substantively equivalent obligation

under this Agreement.

& /en 211

CHAPTER 33

INSTITUTIONAL AND FINAL PROVISIONS

SECTION A

INSTITUTIONAL PROVISIONS

ARTICLE 33.1

The Trade Council

1. The Parties hereby establish a Trade Council. The Trade Council shall oversee the fulfilment

of the objectives of this Agreement and supervise its implementation. It shall examine any matters

arising within the framework of this Agreement.

2. The Trade Council shall meet within a year of the date of entry into force of this Agreement,

and thereafter on a biennial basis, or as otherwise agreed by the Parties. The meetings of the Trade

Council shall take place in person or by any technological means in accordance with its rules of

procedure. Meetings that take place in person shall be held in Brussels and Santiago alternately. The

agenda of a meeting of the Trade Council shall be established by the coordinators of this

Agreement, pursuant to Article 33.3(2).

& /en 212

3. The Trade Council shall be composed of representatives of the Parties with responsibility for

trade and investment matters. The Trade Council shall be co-chaired by a representative of each

Party.

4. The Trade Council shall have the power to adopt decisions in the cases provided for in this

Agreement and to make recommendations, in accordance with its rules of procedure. The Trade

Council shall adopt its decisions and make recommendations by mutual agreement. Decisions shall

be binding on the Parties, which shall take all necessary measures to implement those decisions **[1]** .

Recommendations shall have no binding force.

5. The Trade Council shall establish its own rules of procedure and the rules of procedure of the

Trade Committee at its first meeting.

6. The Trade Council may:

(a) adopt decisions to amend:

(i) the tariff schedules in the Appendices 2-1 and 2-2 in order to accelerate tariff

dismantling;

(ii) Chapter 3 and Annexes 3-A to 3-E;

**1** For greater certainty, Chile will implement any decisions adopted by the Trade Council
through _acuerdos de ejecución_ (executive agreements), in accordance with Chilean law.

& /en 213

(iii) Annexes 6-F and 6-G, and Appendix 6-E-1;

(iv) Annexes 9-A, 9-D and 9-E, and paragraph 1 of Annex 9-B;

(v) Annex 14-B;

(vi) Annex 22;

(vii) the definition of "subsidy" in Article 24.2(1) insofar as it relates to enterprises supplying

services, with a view to incorporating the outcome of future discussions in the WTO or

related plurilateral fora on that matter;

(viii) Annex 25-A as regards the references to the law applicable in the Parties;

(ix) Annex 25-B as regards the criteria to be included in the opposition procedure;

(x) Annex 25-C as regards the geographical indications;

(xi) Annexes 31-A and 31-B; and

(xii) any other provision, annex, appendix or protocol, the amendment of which is provided

for in this Agreement;

& /en 214

(b) adopt decisions to issue interpretations of the provisions of this Agreement, which shall be

binding on the Parties and all bodies established under this Agreement and the panels referred

to in Chapters 26 and 31;

(c) delegate any of its functions to the Trade Committee, including the power to adopt decisions

and to make recommendations;

(d) establish additional Sub-Committees and other bodies pursuant to Article 33.4(2); and

(e) establish the rules of procedure of the Sub-Committees and other bodies, if it deems so

appropriate, pursuant to Article 33.4(7).

ARTICLE 33.2

The Trade Committee

1. The Parties hereby establish a Trade Committee. The Trade Committee shall assist the Trade

Council in the performance of its functions.

2. The Trade Committee shall be responsible for the general implementation of this Agreement.

The circumstance that a matter or issue is being considered by the Trade Committee shall not

prevent the Trade Council from also dealing with it.

& /en 215

3. The Trade Committee shall meet within a year of the date of entry into force of this

Agreement, and thereafter once a year, or as otherwise agreed by the Parties. The meetings of the

Trade Committee shall take place in person or by any technological means in accordance with its

rules of procedure. Meetings that take place in person shall be held in Brussels and Santiago

alternately. The agenda of a meeting of the Trade Committee shall be established by the

coordinators of this Agreement, pursuant to Article 33.3(2).

4. The Trade Committee shall be composed of representatives of the Parties with responsibility

for trade and investment matters. The Trade Committee shall be co-chaired by a representative of

each Party.

5. The Trade Committee shall have the power to adopt decisions in the cases provided for in this

Agreement or when such power has been delegated to it by the Trade Council pursuant to

subparagraph (c) of Article 33.1(6). The Trade Committee shall also have the power to make

recommendations, including when that power has been delegated pursuant to subparagraph (c) of

Article 33.1(6). The Trade Committee shall adopt its decisions and make recommendations by

mutual agreement and in accordance with its rules of procedure. When exercising delegated

functions, the Trade Committee shall adopt its decisions and make recommendations in accordance

with the rules of procedure of the Trade Council. Decisions shall be binding on the Parties, which

shall take all necessary measures to implement those decisions **[1]** . Recommendations shall have no

binding force.

**1** For greater certainty, Chile will implement any decisions adopted by the Trade Committee
through _acuerdos de ejecución_ (executive agreements), in accordance with Chilean law.

& /en 216

6. The Trade Committee shall:

(a) be responsible for the proper implementation of this Agreement; in this respect, and without

prejudice to the rights established under Chapter 31, a Party may refer for discussion within

the Trade Committee any issue relating to the application or interpretation of this Agreement;

(b) oversee the further elaboration of this Agreement as necessary and evaluate the results

obtained from its application;

(c) seek appropriate ways of preventing and solving problems, which might otherwise arise in

areas covered by this Agreement;

(d) supervise the work of all Sub-Committees established under Article 33.4; and

(e) examine any effect on this Agreement of the accession of a new Member State to the

European Union.

7. The Trade Committee may:

(a) establish additional Sub-Committees and other bodies pursuant to Article 33.4(2);

(b) adopt decisions to amend this Agreement pursuant to subparagraph (a) of Article 33.1(6) and

to issue the interpretations referred to in subparagraph (b) of Article 33.1(6) in between

meetings of the Trade Council, when the Trade Council cannot meet or as otherwise provided

for in this Agreement; and

& /en 217

(c) establish the rules of procedure of the Sub-Committees and other bodies, if it deems so

appropriate, pursuant to Article 33.4(7).

ARTICLE 33.3

Coordinators

1. Each Party shall appoint a coordinator for this Agreement, within 60 days of the date of entry

into force of this Agreement, and notify the other Party the contact details of that coordinator.

2. The coordinators shall jointly establish the agenda and conduct all other necessary

preparations for the meetings of the Trade Council, the Trade Committee, and the Sub-Committees

and other bodies established pursuant to Article 33.4. The coordinators shall follow-up on the

decisions of the Trade Council and the Trade Committee, as appropriate.

ARTICLE 33.4

Sub-Committees and other bodies

1. The Parties hereby establish the following Sub-Committees:

(a) the Sub-Committee on Customs, Trade Facilitation and Rules of Origin;

& /en 218

(b) the Sub-Committee on Financial Services;

(c) the Sub-Committee on Intellectual Property;

(d) the Sub-Committee on Public Procurement;

(e) the Sub-Committee on Sanitary and Phytosanitary Measures;

(f) the Sub-Committee on Services and Investment;

(g) the Sub-Committee on Sustainable Food Systems;

(h) the Sub-Committee on Technical Barriers to Trade;

(i) the Sub-Committee on Trade in Goods; and

(j) the Sub-Committee on Trade and Sustainable Development.

2. The Trade Council or the Trade Committee may adopt a decision to establish an additional

Sub-Committee or other body. The Trade Council or the Trade Committee may assign to a

Sub-Committee or other body established pursuant to this paragraph tasks within their respective

competence to assist in the performance of their respective functions and to address specific tasks or

subject matters. The Trade Council or the Trade Committee may change the tasks assigned to, or

dissolve, any Sub-Committee or other body established pursuant to this paragraph.

& /en 219

3. Sub-Committees and other bodies shall be composed of representatives of the Parties and

shall be co-chaired by a representative of each Party.

4. Except as otherwise provided for in this Agreement or as otherwise agreed by the Parties,

Sub-Committees shall meet within a year of their establishment, thereafter, upon request of either

Party or of the Trade Council or the Trade Committee, at an appropriate level. Sub-Committees

may also convene at their own initiative, subject to their respective rules of procedure. The

meetings of the Sub-Committees shall take place in person or by any technological means in

accordance with its rules of procedure. Meetings that take place in person shall be held in Brussels

and Santiago alternately. The agenda of a meeting of the Sub-Committees and other bodies shall be

established by the coordinators of this Agreement, pursuant to Article 33.3(2).

5. Except as otherwise provided for in this Agreement, Sub-Committees and other bodies shall

report on their activities to the Trade Committee, regularly as well as upon request of the Trade

Committee.

6. The circumstance that a matter or issue is being considered by any of the Sub-Committees or

other bodies shall not prevent the Trade Council or the Trade Committee from also dealing with it.

7. The Trade Council or the Trade Committee may establish rules of procedure of the Sub

Committees and other bodies, if it deems so appropriate. If the Trade Council or the Trade

Committee does not establish such rules of procedure, the rules of procedure for the Trade

Committee shall apply _mutatis mutandis_ .

& /en 220

8. The Sub-Committees and other bodies may make recommendations, in accordance with their

respective rules of procedure. The Sub-Committees and other bodies shall make recommendations

by mutual agreement. Recommendations of the Sub-Committees and other bodies shall have no

binding force.

ARTICLE 33.5

Participation of civil society

Each Party shall promote the participation of civil society in the implementation of this Agreement,

in particular through interaction with the respective Domestic Consultative Group, referred to in

Article 33.6, and with the Civil Society Forum referred to in Article 33.7.

& /en 221

ARTICLE 33.6

Domestic Consultative Groups

1. Each Party shall create or designate a Domestic Consultative Group within two years of the

date of entry into force of this Agreement. Each Domestic Consultative Group shall comprise a

balanced representation of independent civil society organisations, including non-governmental

organisations, trade unions, and business and employers' organisations. For these purposes, each

Party shall establish its own appointment rules in order to determine the composition of the

respective Domestic Consultative Group, providing opportunities of access to actors from different

sectors. The membership of each Domestic Consultative Group shall be renewed at periodic

intervals, in accordance with the appointment rules established pursuant to this paragraph.

2. Each Party shall meet with its respective Domestic Consultative Group at least once a year, in

order to discuss the implementation of this Agreement. Each Party may consider views or

recommendations submitted by its respective Domestic Consultative Group.

3. In order to promote public awareness of its respective Domestic Consultative Group, each

Party shall publish a list of the organisations participating in its respective Domestic Consultative

Group, as well as its contact information.

4. The Parties shall promote the interaction between the Domestic Consultative Groups, through

appropriate means.

& /en 222

ARTICLE 33.7

Civil Society Forum

1. The Parties shall promote the regular organisation of a Civil Society Forum to conduct a

dialogue on the implementation of this Agreement.

2. The Parties shall convene meetings of the Civil Society Forum by mutual agreement. When

convening a meeting of the Civil Society Forum, each Party shall invite independent civil society

organisations established in its territory, including the members of its respective Domestic

Consultative Group referred to in Article 33.6. Each Party shall promote a balanced representation,

allowing for the participation of non-governmental organisations, trade unions, and business and

employers' organisations. Each organisation shall bear the costs associated with its participation in

the Civil Society Forum.

3. Representatives of the Parties participating in the Trade Council or in the Trade Committee

shall, as appropriate, take part in the meetings of the Civil Society Forum. The Parties shall, jointly

or individually, publish any formal statements made at the Civil Society Forum.

& /en 223

SECTION B

FINAL PROVISIONS

ARTICLE 33.8

Territorial application

1. This Agreement applies:

(a) with respect to the European Union, to the territories in which the Treaty on European Union

and the Treaty on the Functioning of the European Union are applied, and under the

conditions laid down in those Treaties; and

(b) with respect to Chile, to the land, maritime, and air space under its sovereignty, and the

exclusive economic zone and the continental shelf within which it exercises sovereign rights

and jurisdiction in accordance with international law **[1]** and the law of Chile **[2]** .

**1** For greater certainty, international law includes, in particular, the United Nations Convention
on the Law of the Sea, done at Montego Bay on 10 December 1982.
**2** For greater certainty, in case of an inconsistency between the law of Chile and international
law, the latter shall prevail.

& /en 224

References to "territory" in this Agreement shall be understood in accordance with this paragraph,

except as otherwise expressly provided in this Agreement.

2. As regards the provisions concerning the tariff treatment of goods, including rules of origin

and the temporary suspension of such treatment, this Agreement also applies to those areas of the

customs territory of the European Union within the meaning of Article 4 of Regulation

(EU) No 952/2013 of the European Parliament and of the Council **[1]** that are not covered by

subparagraph (a) of paragraph 1.

ARTICLE 33.9

Amendments

1. The Parties may agree, in writing, to amend this Agreement. Amendments shall enter into

force in accordance with Article 33.10, _mutatis mutandis_ .

2. Notwithstanding paragraph 1 of this Article, the Trade Council may adopt decisions to amend

this Agreement as set out in Articles 33.1 and 33.13(4).

**1** Regulation (EU) No 952/2013 of the European Parliament and of the Council
of 9 October 2013 laying down the Union Customs Code (OJ EU L 269, 10.10.2013, p. 1).

& /en 225

ARTICLE 33.10

Entry into force

1. This Agreement shall enter into force on the first day of the third month following the date of

the last notification by which the Parties inform each other of the completion of their respective

internal procedures required for the entry into force of this Agreement.

2. Notifications made in accordance with paragraph 1 shall be sent, for the European Union, to

the General Secretariat of the Council of the European Union, and, for Chile, to the Ministry of

Foreign Affairs.

ARTICLE 33.11

Other agreements

1. Part IV of the Association Agreement, including any decisions taken under its Institutional

Framework, shall cease to have effect upon the entry into force of this Agreement.

2. This Agreement replaces Part IV of the Association Agreement, including any decisions taken

under its Institutional Framework. References to the aforementioned Agreement, including any

decisions taken under its Institutional Framework, in all other agreements and understandings

between the Parties shall be construed as referring to this Agreement.

& /en 226

3. Existing agreements falling within the scope of this Agreement shall cease to have effect upon

the entry into force of this Agreement.

4. The Agreement on Trade in Wines in Annex V to the Association Agreement (“Wine

Agreement”) and the Agreement on Trade in Spirit Drinks and Aromatised Drinks in Annex VI to

the Association Agreement (“Spirits Agreement”), [1] including all appendices, are incorporated into

and made part of this Agreement, _mutatis mutandis_ and as follows:

(a) references in the Wine Agreement and the Spirits Agreement to the dispute settlement

mechanism referred to in Part IV of the Association Agreement, as well as to the Code of

Conduct referred to in Annex XVI to the Association Agreement, are to be read as referring to

the dispute settlement mechanism provided for in Chapter 31 and to the Code of Conduct

provided for in Annex 31-B, respectively, of this Agreement;

(b) references in the Wine Agreement and the Spirits Agreement to the Community are to be read

as referring to the European Union;

(c) references in the Wine Agreement and the Spirits Agreement to the Association Committee

established by the Association Agreement are to be read as referring to the Trade Committee

established pursuant to Article 33.2 of this Agreement;

(d) references in the Wine Agreement and the Spirits Agreement to Annex IV of the Association

Agreement are to be read as references to Chapter 6 of this Agreement;

(e) for greater certainty, the Joint Committee established by Article 30 of the Wine Agreement

and the Joint Committee established by Article 17 of the Spirits Agreement are to remain in

place, and are to continue exercising the functions indicated in Article 29 of the Wine

Agreement and in Article 16 of the Spirits Agreement; and

**1** For greater certainty, the date of signature and the date of entry into force of the Wine
Agreement and the Spirits Agreement are the same as the date of signature and the date of
entry into force of the Association Agreement.

& /en 227

(f) for greater certainty, Article 1.5(2) of this Agreement applies to the Wine Agreement and the

Spirits Agreement.

5. Any decision taken under the Institutional Framework of the Association Agreement

concerning the Wine Agreement or the Spirits Agreement, in force upon the entry into force of this

Agreement, shall be deemed to have been adopted by the Trade Committee established pursuant to

Article 33.2 of this Agreement.

6. The Parties may amend the appendices to the Wine Agreement and to the Spirits Agreement,

as incorporated, by exchange of letters. [1]

**1** For greater certainty, Chile will implement any amendments to the Wine Agreement and to
the Spirits Agreement as incorporated into this Agreement through _acuerdos de ejecución_
(executive agreements), in accordance with Chilean law.

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ARTICLE 33.12

Annexes, appendices, protocols, notes and footnotes

The annexes, appendices, protocols, notes and footnotes to this Agreement shall form an integral

part thereof.

ARTICLE 33.13

Future accessions to the European Union

1. The European Union shall notify Chile of any request for accession of a third country to the

European Union.

2. The European Union shall notify Chile of the date of the signature and of the entry into force

of the Accession Treaty of a new Member State to the European Union ("Accession Treaty").

3. In respect of a new Member State, this Agreement shall apply as from the date of accession of

that new Member State to the European Union.

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4. In order to facilitate the implementation of paragraph 3 of this Article, as from the date of

signature of an Accession Treaty, the Trade Committee shall examine any effects on this

Agreement deriving from the accession of a new Member State to the European Union, pursuant to

subparagraph (e) of Article 33.2(6). The Trade Council shall adopt a decision on any necessary

amendments to the Annexes to this Agreement, and on any other necessary adaptations, including

transitional measures. Any decision of the Trade Council adopted pursuant to this paragraph, shall

take effect on the date of accession of that new Member State to the European Union.

ARTICLE 33.14

Private rights

1. Nothing in this Agreement shall be construed as directly conferring rights or imposing

obligations on persons, other than rights or obligations created between the Parties under public

international law, or as allowing this Agreement to be directly invoked in the legal systems of the

Parties.

2. A Party shall not provide for a right of action under the law of that Party against the other

Party on the grounds that a measure of the other Party is inconsistent with this Agreement.

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ARTICLE 33.15

Duration

This Agreement shall remain in force until the date of entry into force of the Advanced Framework

Agreement.

ARTICLE 33.16

Termination

Notwithstanding Article 33.15, either Party may notify the other Party of its intention to terminate

this Agreement. That notification shall be sent, for the European Union, to the Secretary-General of

the Council of the European Union and, for Chile, to the Ministry of Foreign Affairs. The

termination shall take effect six months after the date of that notification.

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ARTICLE 33.17

Authentic texts

This Agreement is drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English,

Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese,

Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each text being

equally authentic.

IN WITNESS WHEREOF, the undersigned, duly authorised to this effect, have signed this

Agreement.

Done at …, this… day of … in the year

For the European Union

For the Republic of Chile

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Annexes

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