Article 14.1. General Principles
1. The Parties recognize that Micro, Small and Medium Enterprises, Entrepreneurs, and Actors of the Popular and Solidarity Economy (hereinafter referred to as "MSMEs"), contribute significantly to trade, economic growth, employment and innovation.
2. The Parties shall endeavour to support the growth and development of MSMEs by enhancing their capacity to participate in and benefit from the opportunities created by this Agreement.
3. The Parties recognize that, in addition to the provisions of this Chapter, there are other provisions in the Agreement that seek to enhance cooperation between the Parties on matters relating to MSMEs or that may otherwise be particularly beneficial to MSMEs.
Article 14.2. Exchange of Information
1. Each Party shall establish or maintain its own publicly accessible website containing information regarding this Agreement, including:
(a) the text of this Agreement;
(b) asummary of this Agreement, and
(c) information for MSMEs, containing:
(i) a description of the provisions of this Agreement that the Party considers relevant to MSMEs, and
(ii) any additional information that the Party considers useful for MSMEs interested in benefiting from the opportunities granted by this Agreement.
2. Each Party shall include, on the site referred to in paragraph 1, links to:
(a) the equivalent websites of the other Party, and
(b) the websites of its governmental agencies and other appropriate entities that provide information that the Party considers useful to any person interested in trading, investing or doing business in the territory of that Party.
3. Subject to each Party's legislation, the information described in paragraph 2(b) may include:
(a) customs regulations and procedures;
(b) regulations and procedures on intellectual property rights;
(c) technical regulations,standards,and sanitary and phytosanitary measures relating to import and export;
(d) regulations on foreign investment;
(e) business registration procedures;
(f) labor regulations, and
(g) tax information.
4. Each Party shall regularly review the information and links on the websites referred to in paragraphs 1 and 2 to ensure that such information and links are correct and up to date.
5. Each Party shall ensure that the information contained in this Article is presented in a clear and practical manner, with a focus on facilitating access and use by MSMEs.
Article 14.3. Points of Contact
1. The Parties establish the following Points of Contact:
(a) in the case of Chile, the Ministry of Economy, Development and Tourism through its Small Business Division, or its successor, and
(b) in the case of Ecuador, the Ministry of Production, Foreign Trade, Investment and Fisheries through the Undersecretariat of MSMEs and Handicrafts, or its successor.
2. The Points of Contact shall:
(a) identify ways to assist MSMEs of the Parties to take advantage of trade opportunities under this Agreement;
(b) exchange and discuss each Party's experiences and best practices in supporting and assisting MSMEs;
(c) the Parties may coordinate with other institutions when specific information, which does not fall within the functions of the Ministries concerned , is required with respect to, inter alia:
(i) training programs;
(ii) trade education;
(iii) trade financing;
(iv) fair trade and responsible consumption;
(v) identification of other business partners, and
(vi) the establishment of good practices in trade;
(d) recommend additional information that a Party may include on the site website referred to in Article 14.2;
(e) review and coordinate the work programme with other Contact Points, committees, working groups and any subsidiary bodies established under this Agreement, as well as those of other relevant international organizations, in order not to duplicate those work programmes and to identify appropriate opportunities for cooperation to enhance the capacity of MSMESs to engage in the trade and investment opportunities provided by this Agreement;
(f) facilitate the development of programs to assist MSMEs to effectively participate and integrate into global value chains;
(g) exchange information to assist in monitoring the implementation of this Agreement;
(h) report findings and make recommendations to the Commission that can be included in future assistance programs and MSME programs, as appropriate, and
(i) consider any other matters relating to MSMEs that the Contact Points may decide, including any issues raised by MSMEs regarding their ability to benefit from this Agreement.
3. The Contact Points shall meet at least once a year, in person or by any available technological means, unless they agree otherwise.
Article 14.4. Dialogue on MSMEs
The Parties shall make every effort, through dialogue, consultation and cooperation, to reach consensus on any matter that may arise regarding the interpretation and application of this Chapter.
Article 14.5. Non-Application of Dispute Resolution
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 15. REGIONAL AND GLOBAL VALUE CHAINS
Article 15.1. General Provisions
1. The Parties recognize the importance of deepening integration in trade in goods, services and investment, through the incorporation of new trade disciplines that recognize the current dynamics in international trade, such as Regional and Global Value Chains (hereinafter referred to as "GVCs"), with a view to modernizing and expanding the bilateral economic relationship between the Parties.
2. The Parties reaffirm their commitment to regional integration and recognise the importance of the benefits of trade integration being felt by the citizens of both Parties.
3. The Parties recognize that international trade and investment are drivers of economic growth and that the internationalization of enterprises and their integration into the GVCs should be facilitated.
4. The Parties stress the relevance of Micro, Small and Medium-sized Enterprises, Entrepreneurs, and Actors of the Popular and Solidarity Economy (hereinafter referred to as "MSMEs") in the productive structure of the countries and their impact on employment, and that their adequate insertion in the GVCs contributes to a better allocation of resources and economic benefits derived from international trade, including the diversification and increase of the added value of exports.
5. The Parties express the importance of the participation of the private sector and the entrepreneurial community as key actors in the VGGRCs, and the relevance of generating an enabling public-private policy environment.
6. The Parties recognize the importance for the development of the GVCs of aspects such as cumulation of origin, comnectivity, e-commerce, digitalization, Industry 4.0 and investments, among others, as catalysts for further cross-border productive integration.
7. The Parties recognise the importance of the services sector, including services associated with GVCs in trade integration, and its potential to be embedded in GVCs.
8. Each Party shall seek to promote internally public awareness of policies and practices on regional integration and GRULAC.
Article 15.2. Cooperative Activities
1. The Parties recognize the benefit of sharing their respective experiences in the design, implementation, strengthening and monitoring of policies and programmes to encourage the participation of enterprises in the VGGRCs, especially MSMEs.
2. The Parties shall undertake cooperative activities of mutual interest designed to better exploit the complementarities of their economies and to enhance the capacity and conditions for enterprises, especially MSMEs, to fully access and benefit from the opportunities created by this Agreement.
3. Cooperative activities shall be carried out on issues and topics agreed upon by the Parties, through interaction with their respective governmental institutions, businesses, educational and research institutions, other non-governmental bodies and their representatives, as appropriate.
4. The Parties shall take into account in cooperation activities, where appropriate, inclusive trade, sustainable development and corporate social responsibility, as well as the participation of women, indigenous peoples, civil society and, in the case of Ecuador, the Popular and Solidarity Economy.
5. Areas of cooperation may include:
(a) elaborate programmes to identify the attributes that MSMEs need to develop in order to be inserted in the GVCs;
(b) develop public-private strategies for the detection of opportunities, such as economic sectors with potential for insertion in the CRGVs and the development of productive linkages;
(c) propose joint strategies to analyse and promote the insertion of enterprises in regional and global service chains;
(d) explore actions in conjunction with relevant government agencies to support digital trade in goods, services and investment, improve connectivity and boost the formation of VGRCs;
(f) promote greater access to information on the opportunities offered by the GVCs for MSMEs;
(g) sharing methods and procedures for data collection, use of indicators and analysis of trade statistics.
(h) identify opportunities at the enterprise level, in the territory of the Parties, for the generation of productive linkages;
(i) identify the main means that contribute to promote productive linkages, as well as the main obstacles that affect their formation;
(j) Generate registers of sectors or productive activities with the potential to participate in productive linkages, and identify projects for investment, and
(k) such other matters as may be agreed by the Parties.
6. The Parties may carry out pre-agreed cooperative activities in the areas referred to in paragraph 5 through
(a) workshops, seminars, dialogues and other forums to exchange knowledge, experiences and good practices;
(b) creation of a network of experts in CRGV;
(c) internships, visits and research studies to document and study policies and practices;
(d) collaborative research and development of best practices on issues of mutual interest;
(e) specific exchanges of technical expertise and technical assistance, where appropriate, and
(f) other activities agreed by the Parties.
7. Priorities for cooperative activities shall be decided by the Parties on the basis of their interests and available resources.
Article 15.3. Committee on Regional and Global Value Chains
1. The Parties establish the Committee on Regional and Global Value Chains (hereinafter referred to as the "Committee") composed of representatives of relevant government institutions.
2. The Committee:
(a) shall identify, organize and facilitate the cooperative activities referred to in Article 15.2;
(b) report and make recommendations to the Commission on any matter related to this Chapter;
(c) facilitate the exchange of information on the experiences of each Party with respect to the establishment and implementation of policies, strategies and programmes to promote the inclusion of enterprises in the GVCs, including investments, to achieve the greatest possible benefit under this Agreement;
(d) facilitate the exchange of information on experiences and lessons learned by Parties through cooperative activities carried out under Article 15.2;
(e) will discuss joint proposals to support policies of insertion in the CRGVs;
(f) invite private sector entities, international economic forums, fon- governmental organizations or other relevant institutions, as appropriate, to assist with the development and implementation of cooperative activities;
(g) consider matters related to the implementation and operation of this Chapter;
(h) on request of a Party, consider and discuss any matter that may arise regarding the interpretation and application of this Chapter; and
(i) perform such other work as may be determined by the Parties.
3. The Committee shall meet annually, unless the Parties agree otherwise, in person or by any available technological means, to consider any matter arising under this Chapter.
4. The Committee and the Parties may exchange information and coordinate activities by e-mail, videoconference and other forms of communication.
5. In carrying out its terms of reference, the Committee may work with other committees, working groups and subsidiary bodies established under this Agreement.
6. The Committee may request that the Commission report on its work under this Article to the committees, working groups and other subsidiary bodies established under this Agreement and request their support as necessary.
7. The Parties may invite experts or relevant organizations to the meetings of the Committee, when deemed necessary.
8. Within two (2) years of its first meeting, the Committee shall review the implementation of this Chapter and report to the Commission.
9. Each Party shall make use of its existing mechanisms and, as appropriate, develop other mechanisms for public reporting of activities under this Chapter.
Article 15.4. Points of Contact
To facilitate communication between the Parties on the implementation of this Chapter, each Party designates the following Contact Point and shall promptly notify the other Party if there is any change in the Contact Point:
(a) in the case of Chile, the Global Value Chains Division of the Undersecretariat for International Economic Relations, or its successor, and
(b) in the case of Ecuador, the South American Directorate of the Ministry of Production, Foreign Trade, Investment and Fisheries, or its successor.
Article 15.5. Dialogue on Regional and Global Value Chains
The Parties shall make every effort, through dialogue, consultation and cooperation, to reach consensus on any matter arising in connection with the interpretation and application of this Chapter.
Article 15.6. Non-Application of Dispute Settlement
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 16. TRADE AND LABOUR AFFAIRS
Article 16.1. Definitions
For the purposes of this Chapter:
ILO Declaration means the International Labour Organization (hereinafter referred to as "ILO") Declaration on Fundamental Principles and Rights at Work and its Follow-up of 1998;
labour law means the laws and regulations, or provisions of the laws and regulations, of a Party, that are directly related to the following internationally recognized labour rights:
(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 and, for the purposes of this Agreement, the prohibition of the worst forms of child labour;
(d) the elimination of discrimination in respect of employment and occupation, and
(e) acceptable working conditions with regard to minimum wages, working hours, health and safety at work
Article 16.2. Objectives
The objectives of this Chapter are:
(a) through dialogue and cooperation, strengthen the broader relationship between the Parties and facilitate the enhancement of their capacities to deal with labour issues;
(b) progressively strengthen the welfare of their respective workforces through the promotion of sound labour policies and practices, based on decent work, and a better understanding of each Party's labour system;
(c) provide a forum to discuss and exchange views on labor issues of interest or concern to the Parties;
(d) promote Parties' commitment to the effective dissemination and implementation of their national legislation;
(e) develop information exchange and labour cooperation activities on mutually beneficial terms, and
(f) promote the participation of social actors in the development of public agendas through social dialogue.
Article 16.3. Shared Commitments
1. The Parties reaffirm their obligations as members of the ILO and their commitments under the ILO Declaration with respect to labour rights within their territory.
2. Recognizing the right of each Party to establish its own domestic labor standards and, consequently, to adopt or amend its labor legislation, each Party shall endeavor to ensure that its laws establish labor standards consistent with internationally recognized labor rights.
Article 16.4. Employment Rights
1. Each Party shall adopt and maintain in its laws and regulations, and in practices derived therefrom, the following rights as set forth in the ILO Declaration (1):
(a) freedom of association and 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, and
(d) the elimination of discrimination in respect of employment and occupation.
2. Each Party shall adopt and maintain laws, regulations and practices derived therefrom, regulating acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.
Article 16.5. Non Repeal
1. The Parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection afforded in each Party's labor laws or by refraining from enforcement of its labor laws.
2. Accordingly, neither Party shall waive or otherwise derogate from, or offer to waive or otherwise derogate from, its labor laws or regulations implementing Article 16.4, if the waiver or derogation would be inconsistent with, undermine, or reduce adherence to a right set forth in paragraph 16.4.1 or a condition of work referred to in paragraph 16.4.2, in order to promote trade and/or investment between the Parties.
Article 16.6. Enforcement of Labour Legislation
1. No Party shall fail to effectively enforce its labor laws, through a sustained or recurring course of action or inaction, in a manner affecting trade or investment between the Parties after the date of entry into force of this Agreement.
2. Each Party shall respect the sovereign right of the other Party to establish its own national policies and priorities and to establish, administer and control its labor laws and regulations.
3. Each Party retains the right to exercise reasonable discretion in implementing and making good faith decisions on the allocation of resources for labor enforcement activities relating to the fundamental labor rights and acceptable conditions of work listed in Article 16.4, provided that the exercise of such discretion and such decisions are not inconsistent with its obligations in this Chapter.
4. Nothing in this Chapter shall be construed to empower the authorities of a Party to conduct labor law enforcement activities in the territory of the other Party.
5. The Parties recognize that it is inappropriate to establish or use their labor laws, regulations, policies and practices for protectionist trade purposes.
Article 16.7. Forced or Compulsory Labour
1. Each Party recognizes the goal of eliminating all forms of forced or compulsory labour, including forced or compulsory child labour.