(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 combating 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.
3. Recognising that forests and their sustainable management have a key role in combating 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 in accordance 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 to be at risk because of international trade and other criteria established under CITES.
3. In accordance 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 those objectives, consistent with the Convention on Biological Diversity, done at Rio de Janeiro on 5 June 1992, 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.
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, in accordance 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. In accordance 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 which contribute 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.
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 those 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, on the sustainability of trade in fisheries products, and on development and the environment, and confirm the need for action to address the problems of overfishing and unsustainable utilisation of fisheries resources.
4. In accordance with paragraphs 1, 2 and 3 of this Article, each Party shall:
(a) implement and act in accordance 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 Organization 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;
(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;
(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 that end, including by facilitating the exchange of information;
(e) participate actively in the work of the regional fisheries management organisations ("RFMOs") of which it is a member, observer, or to which it is 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;
(f) strive to act in accordance 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 in accordance 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.
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, adopted on 10 June 2008 and as amended in 2022 (the "ILO Declaration on Social Justice for a Fair Globalization").
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.
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 and the ILO Declaration on Social Justice for a Fair Globalization.
2. Recalling the ILO Declaration on Social Justice for a Fair Globalization, 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 Member States and Chile respectively.
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, 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.
6. Each Party shall promote the ILO Decent Work Agenda as set out in the ILO Declaration on Social Justice for a Fair Globalization, 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. In accordance 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.
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
In accordance 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, in particular in respect of small and medium-sized enterprises;
(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 through the:
(i) promotion of equality and elimination of discrimination in respect of employment and occupation; and
(ii) protection of vulnerable workers;
(i) improving labour relations, for example, through the exchange of best practices 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.
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, organise, 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.
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 a representative of the Under-Secretariat 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 by 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 cooperation activities.
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 the event 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") about any matter arising with regard to 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.
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.
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 of this Article 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 thereof including, if appropriate, specific steps and timelines agreed upon. The Parties shall make the outcome available to the public, unless they agree otherwise.
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, Article 31.14(1), Articles 31.15, 31.19, Article 31.20(2), and Articles 31.21, 31.22, 31.24, 31.32, 31.33, 31.34 and 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;
(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.
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 and the Republic of Chile, 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 the 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.
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 12, 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.
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 complied 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 that 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.
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 that 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 33.10(1).