Article 7.2. Scope
1. This Chapter applies to cooperation between the Parties to improve the sustainability of their respective food systems.
2. This Chapter sets out provisions for cooperation on specific aspects of sustainable food systems, including:
(a) the sustainability of the food chain and reduction of food loss and waste;
(b) the fight against food fraud in the food chain;
(c) animal welfare;
(d) the fight against antimicrobial resistance; and
(e) the reduction of the use of fertilizers and chemical pesticides for which a risk assessment has shown that they cause unacceptable risks to health or the environment.
3. This Chapter also applies to the cooperation of the Parties in multilateral fora.
4. This Chapter applies without prejudice to the application of other Chapters related to food systems or to sustainability, in particular Chapters 6, 9 and 26.
Article 7.3. Definitions
1. For the purposes of this Chapter:
(a) "food chain" means all the steps from primary production to sale to the final consumer, including production, processing, manufacturing, transport, import, storage, distribution and sale to the final consumer;
(b) "primary production" means the production, rearing or growing of primary products, including harvesting, milking and farm animal production prior to slaughter, as well as hunting and fishing and the harvesting of wild products; and
(c) "sustainable food system" means a food system that provides safe, nutritious and sufficient food for all without compromising the economic, social and environmental bases required to generate food security and nutrition for future generations; such a sustainable food system:
(i) is profitable (economic sustainability);
(ii) has broad-based benefits for society (social sustainability); and
(iii) has a positive or neutral impact on the natural environment, including on climate change (environmental sustainability).
Article 7.4. Sustainability of the Food Chain and Reduction In Food Loss and Waste
1. The Parties recognise the interlinkage between current food systems and climate change. The Parties shall cooperate to reduce the adverse environmental and climate effects of food systems as well as to strengthen their resilience.
2. The Parties recognise that food loss and waste have a negative impact on the social, economic and environmental dimensions of food systems.
3. The Parties shall cooperate in areas which may include:
(a) sustainable food production, including agriculture, the improvement of animal welfare, the promotion of organic farming and the reduction of the use of antimicrobials, fertilizers and chemical pesticides for which a risk assessment shows that they pose an unacceptable risk to health or the environment;
(b) sustainability of the food chain, including food production, processing methods and practices;
(c) healthy and sustainable diets, reducing the carbon footprint of consumption;
(d) decrease of the greenhouse gas emissions of food systems, increase of carbon sinks, and the reversal of biodiversity loss;
(e) innovation and technologies that contribute to adaptation and resilience to the impacts of climate change;
(f) development of contingency plans to ensure security of food supply in times of crisis; and
(g) reduction of food loss and waste in line with the Sustainable Development Goal 12, target 12.3, as defined in the 2030 Agenda.
4. Cooperation pursuant to this Article may include exchange of information, expertise and experiences, as well as cooperation in research and innovation.
Article 7.5. Fight Against Fraud In the Food Chain
1. The Parties recognise that fraud may affect the safety of the food chain, jeopardise the sustainability of food systems and undermine fair commercial practice, consumer confidence and the resilience of food markets.
2. The Parties shall cooperate to detect and avoid fraud in the food chain by:
(a) exchanging information and experiences to improve the detection and countering of fraud in the food chain; and
(b) providing assistance necessary to gather evidence of practices that are or appear to be non- compliant with their rules, or that pose a risk to human, animal or plant health or to the environment, or that mislead customers.
Article 7.6. Animal Welfare
1. The Parties recognise that animals are sentient beings and that the use of animals in food production systems comes with a responsibility for their wellbeing. The Parties shall respect trade conditions for farmed animals and animal products that are aimed to protect animal welfare.
2. The Parties aim to reach a common understanding on the international animal welfare standards of the World Organisation for Animal Health ("WOAH").
3. The Parties shall cooperate on the development and implementation of animal welfare standards on the farm, during transport, and at slaughter and killing of animals, in accordance with their law.
4. The Parties shall strengthen their research collaboration in the area of animal welfare to further develop science-based animal welfare standards.
5. The Sub-Committee referred to in Article 7.8 may address other matters in the area of animal welfare.
6. The Parties shall exchange information, expertise and experiences in the area of animal welfare.
7. The Parties shall cooperate in WOAH and may cooperate in other international fora, with the aim of promoting further development of animal welfare standards and best practices and their implementation.
8. Pursuant to Article 33.4(2), the Trade Council or Trade Committee may establish a technical working group to support the Sub-Committee referred to in Article 7.8 in the implementation of this Article.
Article 7.7. Fight Against Antimicrobial Resistance
1. The Parties recognise that antimicrobial resistance is a serious threat to human and animal health and that the use, especially the misuse and overuse of antimicrobials in animals, contributes to the overall development of antimicrobial resistance and represents a major risk to public health. The Parties recognise that the nature of the threat requires a transnational approach.
2. Each Party shall phase out the use of antimicrobial medicinal products as growth promoters.
3. Each Party shall, in accordance with the One Health approach:
(a) have regard to existing and future guidelines, standards, recommendations and actions developed in relevant international organisations in the development of initiatives and national plans aiming to promote the prudent and responsible use of antimicrobials in animal production and in veterinary practice;
(b) promote, where the Parties jointly so decide, responsible and prudent use of antimicrobials, including reducing the use of antimicrobials in animal production and phasing out the use of antimicrobials as growth promoters in animal production; and
(c) support the development and implementation of international action plans on the fight against antimicrobial resistance, if the Parties consider that appropriate.
4. Pursuant to Article 33.4(2), the Trade Council or Trade Committee may establish a technical working group to support the Sub-Committee referred to in Article 7.8 in the implementation of this Article.
Article 7.8. Sub-Committee on Sustainable Food Systems
1. The Sub-Committee on Sustainable Food Systems ("Sub-Committee"), established pursuant to Article 33.4(1), shall be composed of representatives of the Parties with responsibility for sustainable food systems.
2. The Sub-Committee shall monitor the implementation of this Chapter and examine all matters which arise in relation to its implementation.
3. The Sub-Committee shall agree on the actions to take in pursuing the objectives of this Chapter. The Sub-Committee shall establish objectives and milestones for those actions and monitor the Parties' progress in establishing sustainable food systems. The Sub-Committee shall every period evaluate the results of the implementation of those actions.
4. The Sub-Committee may recommend to the Trade Council or Trade Committee, pursuant to Article 33.4(2), the establishment of technical working groups consisting of expert-level representatives of each Party in order to identify and address technical and scientific issues arising from the application of this Chapter.
5. The Sub-Committee shall recommend that the Trade Committee establish rules to mitigate potential conflicts of interest for the participants of the meetings of the Sub-Committee and those of any technical working group referred to in this Chapter. The Trade Committee shall adopt a decision establishing those rules.
Article 7.9. Cooperation In Multilateral Fora
1. The Parties shall cooperate, as appropriate, in multilateral fora to foster the global transition towards sustainable food systems that contribute to the achievement of internationally agreed objectives on the environment, nature and climate protection.
2. The Sub-Committee shall be the forum to exchange information and cooperate in the matters covered by paragraph 1 of this Article.
Article 7.10. Additional Provisions
1. The activities of the Sub-Committee shall not affect the independence of the national or regional agencies of the Parties.
2. Nothing in this Chapter shall affect the rights or obligations of each Party to protect confidential information, in accordance with the law of each Party. When a Party submits information considered confidential under its law to the other Party pursuant to this Chapter, that other Party shall treat that information as confidential, unless the submitting Party agrees otherwise.
3. Fully respecting each Party's right to regulate, nothing in this Chapter shall be construed as obliging a Party to:
(a) modify its import requirements;
(b) deviate from domestic procedures on the preparation and adoption of regulatory measures;
(c) take action that would undermine or impede the timely adoption of regulatory measures to achieve public policy objectives; or
(d) adopt any particular regulatory outcome.
Chapter 8. ENERGY AND RAW MATERIALS
Article 8.1. Objective
The objective of this Chapter is to promote dialogue and cooperation in the energy and raw materials sectors to the mutual benefit of the Parties, to foster sustainable and fair trade and investment ensuring a level playing field in those sectors, and to strengthen the competitiveness of related value chains, including value addition, in accordance with this Agreement.
Article 8.2. Principles
1. Each Party retains the sovereign right to determine whether areas within its territory, as well as in the exclusive economic zone, are available for exploration, production and transportation of energy goods and raw materials.
2. In accordance with this Chapter, the Parties reaffirm their right to regulate within their respective territories in order to achieve legitimate policy objectives in the areas of energy and raw materials.
Article 8.3. Definitions
For the purposes of this Chapter and Annexes 8-A and 8-B:
(a) "authorisation" means the permission, licence, concession or similar administrative or contractual instrument by which the competent authority of a Party entitles an entity to exercise a certain economic activity in its territory in compliance with the requirements set out in the authorisation;
(b) "balancing" means all actions and processes, in all timelines, through which system operators ensure, in a continuous way, maintenance of the system frequency within a predefined stability range and compliance with the amount of reserves needed with respect to the required quality;
(c) "energy goods" means the goods from which energy is generated and that are listed by the corresponding HS code in Annex 8-A;
(d) "hydrocarbons" means the goods listed by the corresponding HS code in Annex 8-A;
(e) "raw materials" means: substances used in the manufacture of industrial products, including ores, concentrates, slags, ashes and chemicals; unwrought, processed and refined materials; metal waste; scrap and remelting scrap, listed by the corresponding HS chapter in Annex 8-A;
(f) "renewable energy" means energy produced from solar, wind, hydro, geothermal, biological or ocean sources or other renewable ambient sources;
(g) "renewable fuels" means biofuels, bioliquids, biomass fuels and renewable fuels of non- biological origin, including renewable synthetic fuels and renewable hydrogen;
(h) "standards" means standards within the meaning of Chapter 9;
(i) "system operator" means:
(i) for the European Union: a person that is responsible for operating, and ensuring the maintenance and development of, the electricity distribution or transmission system in a given area, and for ensuring the long-term ability of such systems; and
(ii) for Chile: an independent body responsible for coordinating the operation of interconnected electrical systems, which ensures the efficient economic performance and safety and reliability of the electric system and provides open access to the transmission system; and
(j) "technical regulations" means technical regulations within the meaning of Chapter 9.
Article 8.4. Import and Export Monopolies
A Party shall not designate or maintain a designated import or export monopoly. For the purposes of this Article, the term "import or export monopoly" means the exclusive right or grant of authority by a Party to an entity to import energy goods or raw materials from, or export energy goods or raw materials to, the other Party (1).
Article 8.5. Export Pricing (2)
1. A Party shall not impose a higher price for exports of energy goods or raw materials to the other Party than the price charged for such goods when destined for the domestic market, by means of any measure, including licences or minimum price requirements.
2. Notwithstanding paragraph 1 of this Article, Chile may introduce or maintain measures with the objective of fostering value addition by supplying raw materials to industrial sectors at preferential prices so that they can emerge within Chile, provided that such measures satisfy the conditions set out in Annex 8-B.
Article 8.6. Domestic Regulated Prices
1. The Parties recognise the importance of competitive energy markets in delivering a wide choice in the supply of energy goods and in enhancing consumer welfare. The Parties also recognise that regulatory needs and approaches may differ between markets.
2. Further to paragraph 1, each Party shall, in accordance with its laws and regulations, ensure that the supply of energy goods is based on market principles.
3. A Party may only regulate the price charged for the supply of energy goods by imposing a public service obligation.
4. If a Party imposes a public service obligation, it shall ensure that such obligation is clearly defined, transparent and non-discriminatory, and does not go beyond what is necessary to achieve the objectives of the public service obligation.
Article 8.7. Authorisation for Exploration and Production of Energy Goods and Raw Materials
1. Without prejudice to Chapter 13, if a Party requires an authorisation to explore or produce energy goods and raw materials, that Party shall ensure that such authorisation is granted following a public and non-discriminatory procedure (1).
2. That Party shall publish, inter alia, the type of authorisation, the relevant area or part thereof, and the proposed date or time limit for granting the authorisation, in such a manner as to enable potentially interested applicants to submit applications.
3. A Party may derogate from paragraph 2 of this Article and Article 13.3 in any of the following cases relating to hydrocarbons:
(a) the area has been subject to a previous procedure which has not resulted in an authorisation being granted;
(b) the area is available on a permanent basis for the exploration or production of energy goods and raw materials; or
(c) an authorisation granted has been relinquished before its expiration date.
4. Each Party may require an entity which has been granted an authorisation to pay a financial contribution or a contribution in kind. The financial contribution or contribution in kind shall be fixed in such a manner as to not interfere with the management and the decision-making process of such entity.
5. Each Party shall ensure that the applicant, where its application is rejected, is provided with the reasons for the rejection so as to enable that applicant to have recourse to procedures for appeal or review where necessary. The procedures for appeal or review shall be made public in advance.
Article 8.8. Assessment of Environmental Impact
1. A Party shall ensure that an assessment of environmental impact (1) is carried out prior to granting authorisation for a project or activity relating to energy or raw materials that may have a significant impact on population, human health, biodiversity, land, soil, water, air or climate, or cultural heritage or landscape. That assessment shall identify and assess such significant impacts.
2. Each Party shall ensure that relevant information is available to the public as part of the process for the assessment of environmental impact, and shall provide time and opportunity to the public to participate in that process and to submit comments.
3. Each Party shall publish and take into account the findings of the assessment of environmental impact prior to granting the authorisation for the project or activity.
Article 8.9. Third-party Access to Energy Transport Infrastructure
1. Each Party shall ensure that system operators in its territory grant non-discriminatory access to the energy infrastructure for the transport of electricity to any entity of a Party. To the furthest extent possible, access to the electricity transport infrastructure shall be granted within a reasonable period of time of the date of the request for access by that entity.
2. Each Party shall enable, in accordance with its laws and regulations, an entity of a Party to access and use the electricity transport infrastructure for the transport of electricity on reasonable and non-discriminatory terms and conditions, including non-discrimination between types of electricity sources, and at cost-reflective tariffs. Each Party shall publish the terms and conditions for the access to, and use of, the electricity transport infrastructure.
3. Notwithstanding paragraph 1, a Party may introduce or maintain in its laws and regulations specific derogations from the right to third-party access on the basis of objective criteria provided that they are necessary to fulfil a legitimate policy objective. Such derogations shall be published before they start to apply.
4. The Parties recognise the relevance of the rules set out in paragraphs 1, 2 and 3 also to gas infrastructure. A Party that does not apply such rules with regard to gas infrastructure shall endeavour to do so, in particular with regard to transport of renewable fuels, while acknowledging differences in market maturity and organisation.
Article 8.10. Access to Infrastructure for Suppliers of Electricity Produced from Renewable Energy Sources
1. Without prejudice to Articles 8.7, 8.9 and 8.11, each Party shall ensure that renewable energy suppliers of the other Party are accorded access to, and use of, the electricity network for renewable electricity generation facilities located within its territory on reasonable and non-discriminatory terms and conditions.
2. For the purposes of paragraph 1, each Party shall ensure, in accordance with its laws and regulations, that its transmission undertakings and system operators, with respect to renewable electricity suppliers of the other Party:
(a) enable a connection between new renewable electricity generation facilities and the electricity network without imposing discriminatory terms and conditions;
(b) enable the reliable use of the electricity network;
(c) provide balancing services; and
(d) ensure that appropriate grid and market-related operational measures are in place in order to minimise the curtailment of electricity produced from renewable energy sources.
3. Paragraph 2 is without prejudice to each Party's legitimate right to regulate within its territory in order to achieve legitimate policy objectives, such as the need to maintain the secure operation and stability of the electricity system, based on objective and non-discriminatory criteria.
Article 8.11. Independent Body
1. Each Party shall maintain or establish a functionally independent body or bodies that:
(a) fix or approve the terms and conditions and tariffs for access to, and use of, the electricity network; and
(b) resolve disputes regarding appropriate terms and conditions and tariffs for access to, and use of, the electricity network within a reasonable period of time.
2. In performing their duties and exercising their powers set out in paragraph 1, the body or bodies shall act transparently and impartially with regard to users, owners and system operators of the electricity network.
Article 8.12. Cooperation on Standards
1. With a view to preventing, identifying and eliminating unnecessary technical barriers to trade in energy goods and raw materials, Chapter 9 applies to those goods and materials.
2. In accordance with Articles 9.4 and 9.6, the Parties shall, as appropriate, promote cooperation between their relevant regulatory and standardising bodies in areas such as energy efficiency, sustainable energy and raw materials, with a view to contributing to trade, investment, and sustainable development, inter alia, through:
(a) the convergence or harmonisation, if possible, of their respective current standards, based on mutual interest and reciprocity, and in line with modalities to be agreed by the regulators and the standardising bodies concerned;
(b) joint analyses, methodologies and approaches, if possible, to assist and facilitate the development of relevant tests and measurement standards, in cooperation with their relevant standardising bodies;
(c) the development of common standards, if possible, on energy efficiency and renewable energy; and
(d) the promotion of standards on raw materials, renewable energy generation and energy efficiency equipment, including product design and labelling, if appropriate, through existing international cooperation initiatives.
3. For the purposes of implementing this Chapter, the Parties aim to encourage the development and use of open standards and interoperability of networks, systems, devices, applications or components in the energy and raw materials sectors.
Article 8.13. Research, Development and Innovation
The Parties recognise that research, development and innovation are key elements to further develop efficiency, sustainability and competitiveness in the energy and raw materials sectors. The Parties shall cooperate, as appropriate, inter alia, in:
(a) promoting the research, development, innovation and dissemination of environmentally sound and cost-effective technologies, processes and practices in the areas of energy and raw materials;
(b) promoting value addition, to the mutual benefit of the Parties, and enhancement of productive capacity in energy and raw materials; and
(c) strengthening capacity building in the context of research, development and innovation initiatives.
Article 8.14. Cooperation on Energy and Raw Materials
1. The Parties shall cooperate, as appropriate, in the areas of energy and raw materials with a view to, inter alia:
(a) reducing or eliminating measures that in themselves or together with other measures could distort trade and investment, including measures of a technical, regulatory or economic nature affecting energy or raw materials sectors;