2. In all other respects, however, and in particular as regards rules of origin, testing, certification and verification of origin and other requirements relating to transit and transhipment, full compliance shall be given with what Chile has agreed in the respective trade agreements and free trade treaties.
3. For the purposes of this Article, goods shall not be deemed to have undergone any change, further processing or other operation if they are subject to a process of marketing, unloading, reloading or any other operation necessary to maintain them in good condition.
Chapter 6. SANITARY AND PHYTOSANITARY MEASURES
Article 6.1. Objectives
The objectives of this Chapter are:
(a) maintain and strengthen the implementation of the SPS Agreement and the applicability of international standards, guidelines and recommendations developed by relevant international organisations (OIE, IPPC and Codex Alimentarius Commission (FAQ);
(b) expand trade opportunities through trade facilitation between the Parties by seeking to resolve market access issues, protecting human and animal life and health or to preserve plants in the territories of the Parties;
(c) establish a mechanism for strengthening transparency and recognition of the equivalence of sanitary and phytosanitary measures and regionalisation practices maintained by Parties consistent with the protection of human, animal or plant life or health; and
(d) provide communication and cooperation mechanisms to resolve sanitary and phytosanitary issues.
Article 6.2. Scope of Application
This Chapter shall apply to all sanitary and phytosanitary measures, including food safety, that directly or indirectly affect trade in animals, animal products and by-products, plants and plant products and by-products between the Parties.
Article 6.3. General Provisions
1. The Parties confirm the rights and obligations existing between them under the SPS Agreement.
2. The Parties agree to use the Committee on Sanitary and Phytosanitary Matters of this Chapter to address issues where there are divergences of understanding related to the application of sanitary and phytosanitary measures.
3. A Party may enter into consultations with the other Party for the purpose of resolving questions relating to the application of measures covered by this Chapter or the interpretation of the provisions of this Chapter.
4, If a Party considers it necessary, it may request that the Committee facilitate such consultations. The Committee may refer matters to an ad hoc working group for further discussion. The ad hoc working group may make a recommendation to the Committee on the resolution of these matters. The Committee shall discuss the recommendation with a view to resolving the matter without undue delay.
5. The Parties may use the Dispute Settlement Mechanism provided for in Chapter 13 (Dispute Settlement) of this Agreement.
Article 6.4. Committee on Sanitary and Phytosanitary Matters
1. The Parties agree to establish a Committee on Sanitary and Phytosanitary Matters, composed of representatives of each Party with responsibilities for sanitary and phytosanitary matters, as specified in Annex 6.4 (Committee on Sanitary and Phytosanitary Matters). This Committee shall be established no later than one year after entry into force of this Agreement and shall meet at least once a year, unless the Parties agree otherwise. It may also establish ad-hoc working groups.
2. The Committee shall establish its terms of reference and rules of procedure at its first meeting. In relation to the modality of meetings of the Committee, as well as for the ad-hoc Committees and contact points that are created, these may be through face-to-face or virtual meetings, such as video-conference or electronic communications.
3. The Committee will provide a forum for:
(a) improve a Party's implementation of the SPS Agreement, enhance consultation and cooperation on sanitary and phytosanitary matters, and facilitate trade between the Parties;
(b) improve any present or future relationship between the Parties' agencies with SPS responsibility;
(c) increase mutual understanding of each Party's sanitary and phytosanitary measures and the regulatory processes related to those measures;
(d) consult on matters relating to the development or application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties;
(e) consult on issues, positions and agendas of meetings of the SPS Committee, the various Codex committees (including the FAO Codex Alimentarius Commission), the IPPC, the OIE and other international and regional fora on food safety, human, animal and plant health;
(f) coordinate technical cooperation programmes on sanitary and phytosanitary matters;
(g) improve bilateral understanding on specific implementation issues relating to the SPS Agreement; and
(h) review sanitary and phytosanitary matters that may arise between the agencies of the Parties with responsibility for such matters.
4. Each Party shall ensure that appropriate representatives with responsibilities for the development, implementation, and enforcement of sanitary and phytosanitary measures from relevant ministries or regulatory and trade agencies participate in meetings of the Committee. The official ministries or agencies of each Party responsible for such measures shall be listed in the Committee's terms of reference.
Article 6.5. Transparency
1. The Parties shall, upon the conclusion of this Agreement, exchange sanitary and phytosanitary measures related to the importation of animals, animal products and by- products, plants, plant products and other regulated articles.
2. When the Parties establish new measures, emergency measures or modify established SPS measures, these shall be notified as provided for in the SPS Agreement and its Supplementary Decisions.
3. The Parties undertake to provide a reasoned reply to the comments on the notified measures.
4. The Parties shall consider a transition period for all products in transit covered by certification made prior to the entry into force of the new measure, except in the case of an emergency measure.
5. In addition, changes in the animal health field, such as the occurrence of exotic diseases, should be reported within 24 hours of detection of the problem and changes in the phytosanitary field, such as the occurrence of quarantine pests or the spread of pests under official control, within 72 hours of verification.
Article 6.6. Regionalisation
1. Recognition of the sanitary and phytosanitary conditions of a Party or a part of its territory shall be carried out in accordance with its standards and legislation, which shall be in conformity with the SPS Agreement, any supplementary decisions that may be generated and following the guidelines of the IPPC and the OIE Terrestrial and Aquatic Animal Health Codes.
2. An exporting Party seeking recognition of its plant pest or animal disease status by the importing Party shall formally request such recognition by attaching to its request full scientific information in support of its pest or animal disease status.
3. The recovery of pest free status of plants and animal diseases for a zone that has lost this status shall be carried out according to the provisions of its standards and legislation, which shall be in conformity with the SPS Agreement, the complementary decisions generated and following the guidelines of the IPPC and the OIE Terrestrial and Aquatic Animal Health Codes.
4. The Party receiving the request for recognition shall decide within a period of time previously agreed with the other Party, and may carry out verifications for inspection, tests and other procedures. In the event of non-acceptance, it shall state in writing the technical basis for its decision.
Article 6.7. Equivalence
1. The process of recognition of equivalence may be accepted for a specific measure or for measures relating to a specific product or a specific category of products, or at the level of systems, as set out in supplementary decisions to the SPS Agreement.
2. The process of recognition of equivalence is initiated by a formal request from the exporting Party, including the reasons for initiating the process. The importing Party shall accept the sanitary or phytosanitary measures of the exporting Party as equivalent, if the exporting Party objectively demonstrates that its measure achieves the importing Party's appropriate level of protection. For this purpose, upon request of the importing Party, reasonable access for inspection, testing and other relevant procedures shall be provided. The process of recognition of equivalence and its determination shall be based on the standards of the competent international organisations and in accordance with the SPS Agreement and its Supplementary Decisions.
3. Equivalence shall apply to trade between the Parties in animals and animal products, plants and plant products or, to the extent appropriate, other related goods.
Article 6.8. Certification Procedures
1. SPS certification procedures will be harmonised with the International Standards of the OIE, IPPC and Codex Alimentarius Commission (FAQ).
2. The importing Party may carry out the pre-assessment and pre-audit of part or all of the certification process and the approval of production, processing and/or treatment facilities for animals, animal products and by-products, plants and plant products and by-products.
Article 6.9. Cooperation
1. The Cooperation referred to in the Objective of this Chapter shall address specific projects in support of sanitary and phytosanitary measures, taking into account the regulations in force in both Parties, in accordance with the rules of the WTO and other relevant international organisations.
2. The Parties shall define the needs for Cooperation, of mutual interest, on the basis of which the specific projects referred to in paragraph 1 shall be developed, at the first meeting of the Committee on Sanitary and Phytosanitary Matters of this Chapter.
Article 6.10. Definitions
The definitions in Annex A of the SPS Agreement, as well as those from the harmonised glossaries of terms of the International Reference Organisations: the World Organisation for Animal Health (OIE), the International Plant Protection Convention (IPPC), and the Codex Alimentarius (FAO), shall apply in the implementation of this Chapter.
Chapter 7. TECHNICAL BARRIERS TO TRADE
Article 7.1. Objectives
The objectives of this Chapter are to increase and facilitate trade by improving the implementation of the TBT Agreement, eliminating unnecessary technical barriers to trade, and increasing bilateral cooperation.
Article 7.2. Scope of Application
1. Except as provided for in paragraphs 2 and 3 of this Article, this Chapter applies to all standards, technical regulations and conformity assessment procedures that may, directly or indirectly, affect trade in goods between the Parties.
2. Technical specifications developed by government agencies for the production or consumption needs of such agencies are not subject to the provisions of this Chapter.
3. This Chapter does not apply to sanitary and phytosanitary measures as defined in Annex A of the SPS Agreement.
Article 7.3. Confirmation of the TBT Agreement
The Parties confirm the rights and obligations existing between them under the TBT Agreement.
Article 7.4. International Standards
In determining whether an international standard, guidance or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall apply the principles set out in Decisions and Recommendations adopted by the Committee since 1 January 1995, G/TBT/1/Rev.7, dated 28 November 2000, Section IX (Decision of the Committee on Principles Guiding the Development of International Standards, Guidance and Recommendations on Articles 2 and 5 and Annex 3 of the Agreement), issued by the Committee on Technical Barriers to Trade of the TBT Agreement.
Article 7.5. Trade Facilitation
The Parties shall intensify their joint work in the field of standards, technical regulations and conformity assessment procedures with a view to facilitating access to their respective markets. In particular, the Parties shall seek to identify bilateral initiatives that are appropriate for particular issues or sectors. Such initiatives may include cooperation on regulatory matters, such as convergence or equivalence of technical regulations and standards, alignment with international standards, reliance on a supplier's declaration of conformity, and the use of accreditation to qualify conformity assessment bodies, as well as cooperation through mutual recognition.
Article 7.6. Technical Regulations
1. Where a Party provides for acceptance of a foreign technical regulation as equivalent to a particular Party's own technical regulation, and the Party does not accept a technical regulation of the other Party as equivalent to that technical regulation, it shall, on request of the other Party, explain the reasons for not accepting the other Party's technical regulation as equivalent.
2. Where a Party does not provide for the acceptance of foreign technical regulations as equivalent to its own, the Party may, on request of the other Party, explain the reasons for not accepting the other Party's technical regulations as equivalent.
Article 7.7. Conformity Assessment
1. The Parties recognise that a wide range of mechanisms exist to facilitate the acceptance of conformity assessment results, including:
(a) the importing Party's reliance on a supplier's declaration of conformity;
(b) voluntary agreements between conformity assessment bodies in the territory of each Party;
(c) agreements on mutual acceptance of the results of conformity assessment procedures with respect to specific regulations, carried out by bodies located in the territory of the other Party;
(d) accreditation procedures for qualifying conformity assessment bodies;
(e) government designation of conformity assessment bodies; and
(f) the recognition by a Party of the results of conformity assessments carried out in the territory of the other Party.
2. The Parties shall intensify their exchange of information on the range of mechanisms that facilitate the acceptance of conformity assessment results.
3. In the event that a Party does not accept the results of conformity assessment procedures carried out in the territory of the other Party, it shall, on request of the other Party, explain its reasons.
4. Each Party shall accredit, approve, approve, authorise or otherwise recognise conformity assessment bodies in the territory of the other Party on terms no less favourable than those accorded to conformity assessment bodies in its territory. If a Party accredits, approves, authorises or otherwise recognises a body assessing conformity with a particular technical regulation or standard in its territory and refuses to accredit, approve, authorise or otherwise recognise a body assessing conformity with that technical regulation or standard in the territory of the other Party, it shall, on request, explain the reasons for its refusal.
5. Where a Party rejects a request by the other Party to enter into or conclude negotiations to reach an agreement to facilitate the recognition in its territory of the results of conformity assessment procedures carried out by bodies in the territory of the other Party, it shall, on request, explain its reasons.
Article 7.8. Transparency
1. Each Party shall permit persons of the other Party to participate in the development of standards, technical regulations and conformity assessment procedures. Each Party shall permit persons of the other Party to participate in the development of such measures on terms no less favourable than those accorded to its own persons.
2. Each Party shall recommend that non-governmental standardizing bodies in its territory observe the provisions of paragraph 1.
3. In order to increase the opportunity for meaningful comment by persons, a Party publishing a notice pursuant to Article 2.9 or 5.6 of the TBT Agreement shall:
(a) include in the notice a statement describing the objective of the proposal and the reasons for the Party's proposed approach; and
(b) electronically transmit the proposal to the other Party, through the contact point set out in Article 10 of the TBT Agreement, at the same time it notifies the proposal to WTO Members under the TBT Agreement.
Each Party should allow at least 60 days from the transmittal referred to in subparagraph (b) for written comments by persons and the other Party on the proposal.
4. When a Party makes a notification under Article 2.10 or 5.7 of the TBT Agreement, it shall at the same time transmit the notification electronically to the other Party through the contact point referred to in paragraph 3(b).
5. Each Party shall publish, in printed or electronic form, or otherwise make publicly available, its responses to significant comments at the same time as the final technical regulation or conformity assessment procedure is published.
6. Each Party shall provide, on request of the other Party, information regarding the objectives and reasons for the Party having adopted or proposing to adopt a standard, a technical regulation or a conformity assessment procedure.
7. Each Party shall implement this Article as soon as practicable and in no case later than 5 years after entry into force of this Agreement.
Article 7.9. Technical Barriers to Trade Committee
1. The Parties establish the Committee on Technical Barriers to Trade, composed of representatives of each Party, in accordance with Annex 7.9 (Committee on Technical Barriers to Trade). 2. The functions of the Committee shall include:
(a) oversee the implementation and administration of this Chapter;
(b) address, without delay, any matter that a Party raises relating to the development, adoption, implementation, or enforcement of standards, technical regulations, or conformity assessment procedures;
(c) enhancing cooperation for the development and improvement of standards, technical regulations, or conformity assessment procedures;
(d) facilitate, where appropriate, sectoral cooperation between governmental and non-governmental conformity assessment bodies in the territory of the Parties;
(e) exchange information on developments in non-governmental, regional and multilateral fora involved in activities related to standardisation, technical regulations, and conformity assessment procedures;
(f) take any other action that the Parties consider will assist them in the implementation of the TBT Agreement and the facilitation of trade in goods between them;
(g) consult, at the request of a Party, on any matter arising under this Chapter;
(h) review this Chapter in the light of developments under the TBT Agreement and develop recommendations to amend this Chapter in the light of developments; and
(i) report to the Commission, if it considers it appropriate, on the implementation of this Chapter. 3. Where the Parties have resorted to consultations pursuant to paragraph 2(g), such consultations shall, if the Parties so agree, constitute consultations under Article 13.4 (Consultations).
4. Upon request, a Party shall consider favourably any sector-specific proposal made by the other Party to deepen cooperation under this Chapter.
5. The Committee shall meet at least once a year, or more frequently at the request of either Party, by teleconference, video-conference or any other means mutually determined by the Parties.
Article 7.10. Exchange of Information
Any information or explanation that is provided at the request of a Party pursuant to the provisions of this Chapter shall be provided in printed or electronic form within a reasonable period of time.
Article 7.11. Definitions
For the purposes of this Chapter, the definitions in Annex 1 of the OTC Agreement shall apply.
Chapter 8. TRADE DEFENCE
Section A. Safeguards
Article 8.1. Imposition of a Safeguard Measure
1. A Party may impose a safeguard measure described in paragraph 2 only during the transition period if, as a result of the reduction or elimination of a customs duty under this Agreement, a good originating in the territory of the other Party is imported into the territory of the Party in such increased quantities in absolute terms or relative to domestic production, and under such conditions as to constitute a substantial cause of serious injury, or threat thereof, to the domestic industry producing a like or directly competitive good.
2. If the conditions set out in paragraph 1 are met, a Party may, to the extent necessary to prevent or remedy serious injury or threat of injury and to facilitate readjustment:
(a) suspend the further reduction of any tariff rate provided for in this Agreement for the good; or
(b) increase the rate of duty for the good to a level not to exceed the lesser of:
(i) the most favoured nation (MFN) tariff rate applied at the time the measure is adopted, or
(ii) the most favoured nation (MFN) tariff rate applied on the day immediately preceding the entry into force of this Agreement. (1)
Article 8.2. Rules for a Safeguard Measure
1. A Party may adopt a safeguard measure, including any extension thereof, for a period not exceeding 3 years. Irrespective of its duration, such measure shall expire at the end of the transition period.
2. In order to facilitate readjustment in a situation where the expected duration of a safeguard measure exceeds one year, the Party applying the measure shall progressively liberalise it at regular intervals during the period of application.
3. No Party may apply a safeguard measure more than once with respect to the same good.
4. No Party may simultaneously impose a safeguard measure on a good that is subject to a measure that the Party has imposed under Article XIX of the GATT 1994 and the Agreement on Safeguards, nor may a Party continue to maintain a safeguard measure on a good that becomes subject simultaneously to a safeguard measure that the Party imposes under Article XIX of the GATT 1994 and the Agreement on Safeguards.
5. On termination of the safeguard action, the rate of duty shall be no higher than the rate that, according to the Party's Schedule to Annex 3.3 (Tariff Elimination), would have been in effect one year after the imposition of the action. As of 1 January of the year following the cessation of the action, the Party taking the action:
(a) apply the tariff rate set out in the Party's Schedule to Annex 3.3 (Tariff Elimination) as if the safeguard measure had never been applied; or
(b) eliminate the customs duty in equal annual stages, ending on the date specified for tariff elimination in the Party's Schedule to Annex 3.3 (Tariff Elimination).
Article 8.3. Investigation Procedures and Transparency Requirements
1. A Party may apply a safeguard measure only after an investigation by the Party's competent authorities pursuant to Articles 3 and 4.2(c) of the Agreement on Safeguards; and to this end, Articles 3 and 4.2(c) of the Agreement on Safeguards are incorporated into and made part of this Agreement, mutatis mutandis.
2. In the investigation described in paragraph 1, the Party shall comply with the requirements of Article 4.2(a) of the Agreement on Safeguards; and to this end, Article 4.2(a) is incorporated into and made part of this Agreement, mutatis mutandis.
Article 8.4. Notification
1. A Party shall promptly notify the other Party in writing when:
(a) initiate an investigation in accordance with Article 8.3;
(b) determine the existence of serious injury, or a threat thereof, caused by increased imports pursuant to Article 8.1;
(c) take a decision to apply or extend a safeguard measure; and (d) adopt a decision to amend a previously applied safeguard measure.
2. A Party shall provide to the other Party a copy of the public version of the report of its competent authorities pursuant to Article 8.3.1.
Article 8.5. Compensation
1. The Party applying a safeguard measure shall, in consultation with the other Party, provide to the other Party mutually agreed trade liberalisation compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional customs duties expected to result from the measure. Such consultations shall begin within 30 days of the imposition of the measure.
2. If the Parties are unable to agree on compensation within 30 days of the initiation of consultations, the exporting Party may suspend the application of substantially equivalent concessions to the trade of the Party applying the safeguard measure.
3. A Party shall notify the other Party in writing of the suspension of concessions pursuant to paragraph 2 at least 30 days prior to the suspension.
4. The obligation to compensate under paragraph 1 and the right to suspend substantially equivalent awards under paragraph 2 shall terminate on the date on which the later of the following occurs: (a) the expiry of the safeguard measure; or (b) the date on which the customs tariff reverts to the tariff rate set out in the Schedule to Part of Annex 3.3 (Tariff elimination).
Article 8.6. Global Actions
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards.
2. This Agreement confers no additional rights or obligations on the Parties with respect to actions taken pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards.
Article 8.7. Definitions
For the purposes of this Section:
threat of serious harm means the clear imminence of serious harm based on facts and not merely on allegation, conjecture or remote possibility;
competent investigating authority means the competent investigating authority as set out in Annex 8.7 (Country Specific Definitions);
substantial cause means a cause that is important and not less than any other cause;
serious injury means a significant overall impairment of the condition of a domestic