Industry Classification:
Type of Reservation: National Treatment (Articles 73 and 107) Most-Favored-Nation Treatment Articles 74 and 108) Performance Requirements (Article 77) Senior Management and Boards of Directors (Article 78) Local Presence (Article 109)
Description: Investment and Cross-Border Trade in Services
Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in public law enforcement and correctional services, and in social services such as income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.
Existing Measures:
Schedule of Chile
1. Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 73) Most -Favored-Nation Treatment (Article 74)
Description: Investment
Chile reserves the right to adopt or maintain any measure relating to the ownership or control of land within five kilometers of the coastline that is used for agricultural activities. Such measure could include a requirement that the majority of each class of stock of a Chilean juridical person that seeks to own or control such land be held by Chilean persons or by persons residing in Chile for 183 days or more per year.
Decree Law 1939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Titulo I)
Existing Measures:
2. Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 73) Senior Management and Boards of Directors (Article 78)
Description: Investment
Chile, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of Japan or of a non-Party or their investments. With respect to such a sale or other disposition, Chile may adopt or maintain any measure relating to the nationality of individuals appointed to senior Management positions or members of the board of directors.
For the purposes of this reservation:
(a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality requirements described in this reservation shall be deemed to be an existing measure; and
(b) "state enterprise" means an enterprise owned or controlled through ownership interests by Chile and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.
Existing Measures:
3. Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: Most-Favored-Nation Treatment (Articles 74 and 108)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force on, or signed prior to, the date of entry into force of this Agreement.
Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:
(a) aviation;
(b) fisheries; or
(c) maritime matters, including salvage.
Existing Measures:
4. Sector: Communications
Sub-Sector: Local Basic Telecommunication Services and Networks; One Way Satellite Broadcasting of Digital Telecommunication Services, Whether These Involve Direct Home Television Broadcasting, Direct Broadcasting of Television Services and Direct Audio Broadcasting; Supplementary Telecommunication Services, and Limited Telecommunication Services
Industrial Classification:
Type of Reservation: National Treatment (Article 107) Most-Favored-Nation Treatment (Article 108) Local Presence (Article 109)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure related to cross-border trade in local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services.
Existing Measures: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Titulos I, II, III, Vy VI)
5. Sector: Communications
Sub-Sector: Local Basic Telecommunication Services and Networks; One Way Satellite Broadcasting of Digital Telecommunication Services, Whether These Involve Direct Home Television Broadcasting, Direct Broadcasting of Television Services and Direct Audio Broadcasting; Supplementary Telecommunication Services, and Limited Telecommunication Services
Industrial Classification:
Type of Reservation: National Treatment (Articles 73) Most -Favored-Nation Treatment (Article 74) Performance Requirements (Article 77) Senior Management and Boards of Directors (Article 78)
Description: Investment
Chile reserves the right to adopt or maintain any measure related to the investors of Japan or to their investments in local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services.
Existing Measures: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Titulos I, II, III, Vy VI)
6. Sector: Issues Involving Minorities
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Articles 73 and 107) Most-Favored-Nation Treatment (Articles 74 and 108) Performance Requirements (Article 77) Senior Management and Boards of Directors (Article 78) Local Presence (Article 109)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.
Existing Measures:
7. Sector: Issues Involving Indigenous Peoples
Sub-Sector:
Industry Classification:
Type of Reservation: National Treatment (Articles 73 and 107) Most-Favored-Nation Treatment (Articles 74 and 108) Performance Requirements (Article 77) Senior Management and Boards of Directors (Article 78) Local Presence (Article 109)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure denying investors of Japan and their investments or service suppliers of Japan any rights or preferences provided to indigenous peoples.
Existing Measures:
8. Sector: Education
Sub-Sector:
Industry Classification: CPC 92 Education services
Type of Reservation: National Treatment (Article 107) Most-Favored-Nation Treatment (Article 108) Local Presence (Article 109)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure relating to natural persons who supply educational services, including teachers and auxiliary personnel supplying educational services in elementary education, kindergarten, pre-school, special education, primary and high school education, professional, technical, and university education, including educational establishments of any kind as well as sponsors of educational establishments, schools, lyceums, academies, training centers, professional and technical institutes, and/or universities.
This reservation does not apply to the supply of services related to second-language training, corporate, business, and industrial training and skill upgrading, which include consulting services relating to technical support, advice, curriculum, and program development in education.
Existing Measures:
9. Sector: Government Finances
Sub-Sector:
Industry Classification: CPC 91112 Financial and fiscal services
Type of Reservation: National Treatment (Article 73)
Description: Investment
Chile reserves the right to adopt or maintain any measure related to the acquisition, sale, or disposal by Japanese nationals of bonds, treasury securities, or any other type of debt instruments issued by the Central Bank of Chile (Banco Central de Chile) or the Government of Chile. This reservation is not intended to affect the rights of Japanese financial institutions (banks) established in Chile to acquire, sell, or dispose of such instruments when required for the purposes of regulatory capital.
Existing Measures:
10. Sector: Fisheries
Sub-Sector: Fishing-Related Activities
Industry Classification: CPC 882 Services incidental to fishing CPC 04 Fish and other fishing products
Type of Reservation: National Treatment (Articles 73 and 107) Most-Favored-Nation Treatment (Articles 74 and 108)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to control the activities of foreign fishing, including fish landing, first landing of fish processed at sea, and access to Chilean ports (port privileges).
Chile reserves the right to control the use of beaches, land adjacent to beaches (terrenos de playas), water- columns (porciones de agua), and sea-bed lots (fondos marinos) for the issuance of maritime concessions. For greater certainty, "maritime concessions" do not cover aquaculture.
Existing Measures: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación Títulos I, II, III, IV y V). D.F.L. 340, Official Gazette, April 6, 1960, about Maritime Concessions (D.F.L. 340, Diario Oficial, abril 6, 1960, sobre Concesiones Maritimas). Supreme Decree 660, Official Gazette, November 28, 1988, Maritime Concession Act (Decreto Supremo 660, Diario Oficial, noviembre 28, 1988, Reglamento de Concesiones Maritimas).Supreme Decree 123 of the Ministry of Economic Affairs, Development and Reconstruction, Vice-Ministry of Fishing, Official Gazette, August 23, 2004, On Use of Ports (Decreto Supremo 123 del Ministerio de Economia, Fomento y Reconstrucción, Subsecretaria de Pesca, Diario Oficial, agosto 23, 2004, Sobre Uso de Puertos)
11. Sector: Cultural Industries
Sub-Sector:
Industrial Classification:
Type of Reservation: Most-Favored-Nation Treatment (Articles 74 and 108)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any existing or future bilateral or multilateral international agreement with respect to cultural industries, such as audiovisual cooperation agreements. For greater certainty, for the purposes of this reservation, government supported subsidy programs for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement.
"Cultural industries" means persons engaged in any of the following activities:
(a) publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing;
(b) production, distribution, sale, or display of recordings of movies or videos;
(c) production, distribution, sale, or display of music recordings in audio or video format;
(d) production, distribution, or sale of printed music scores or scores readable by machines; or
(e) radiobroadcasts aimed at the public in general, as well as all radio, television and cable television-related activities, satellite programming services, and broadcasting networks.
Existing Measures:
12. Sector: Social Services
Sub-Sector:
Industrial Classification: CPC 913 Compulsory social security services CPC 92 Education services CPC 93 Health and social services
Type of Reservation: National Treatment (Articles 73 and 107) Most-Favored-Nation Treatment (Articles 74 and 108) Performance Requirements (Article 77) Senior Management and Boards of Directors (Article 78) Local Presence (Article 109)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care, and child care.
Existing Measures:
13. Sector: Environmental Services
Sub-Sector:
Industrial Classification: CPC 94 Sewage and refuse disposal, sanitation and other environmental protection services
Type of Reservation: National Treatment (Article 107) Most-Favored-Nation Treatment (Article 108) Local Presence (Article 109)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water, and sanitation services, such as sewage systems, waste disposal, and waste water treatment may only be provided by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law.
This reservation shall not apply to consultancy services retained by the said juridical persons.
Existing Measures:
14. Sector: Construction Services
Sub-Sector:
Industrial Classification: CPC 51 Construction work CPC 52 Constructions
Type of Reservation: National Treatment (Article 107) Local Presence (Article 109)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure with respect to the supply of construction services by foreign juridical persons or legal entities imposing requirements of residence, registration, and/or any other form of local presence, or imposing the obligation of giving financial security for work as a condition for the supply of construction services.
Existing Measures:
Annex 8. referred to in Chapter 8 Transfers
Transfers
1. Chile reserves the right of the Central Bank of Chile (Banco Central de Chile) to maintain or adopt measures in conformity with Law 18.840, Constitutional Organic Law of the Central Bank of Chile (Ley 18.840, Ley Organica Constitucional del Banco Central de Chile) or other legislation, in order to ensure currency stability and the normal operation of domestic and foreign payments. For this purpose, the Central Bank of Chile is empowered to regulate the supply of money and credit in circulation and international credit and foreign exchange operations. The Central Bank of Chile is empowered as well to issue regulations governing monetary, credit, financial, and foreign exchange matters. Such measures include, inter alia, the establishment of restrictions or limitations on current payments and transfers (capital movements) to or from Chile, as well as transactions related to them, such as requiring that deposits, investments or credits from or to a foreign country, be subject to a reserve requirement (encaje).
2. Notwithstanding paragraph 1, the reserve requirement that the Central Bank of Chile can apply pursuant to Article 49 N° 2 of Law 18.840, shall not exceed 30 percent of the amount transferred and shall not be imposed for a period which exceeds two years.
3. When applying measures under this Annex, Chile, as established in its legislation, shall not discriminate between Japan and any third country with respect to transactions of the same nature.
Annex 9. referred to in Chapter 8 Expropriation
The Parties confirm their shared understanding that paragraph 1 of Article 82 addresses the following two situations:
(a) the first situation is direct expropriation, where an investment is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure; and
(b) the second situation is indirect expropriation, where an action or a series of actions by a Party has an effect equivalent to direct expropriation without formal transfer of title or outright seizure. The determination of whether an action or a series of actions by a Party, in a specific fact situation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry that considers, among other factors:
(i) the economic impact of the government action, although the fact that such action has an adverse effect on the economic value of an investment, standing alone, does not establish that an indirect expropriation has occurred;
(ii) the extent to which the government action interferes with distinct, reasonable expectations arising out of investment;
(iii) the character of the government action, including whether such action is non- discriminatory; and
(iv) the objectives of the government action, including whether such action is taken for legitimate public objectives.