industry; safeguard measure means a safeguard measure described in Article 8.1(2); transition period means the period during which a good is in the process of being released,
beginning when that good begins to be released and ending when its tariff reaches zero, except for those goods with immediate relief, for which the transition period shall be 2 years.
Section B. Anti-dumping and Countervailing Duties
Article 8.8. Anti-dumping and Countervailing Duties
1. Each Party retains its rights and obligations under the WTO Agreement with respect to the application of anti-dumping and countervailing duties.
2. Nothing in this Agreement, including the provisions of Chapter 13 (Dispute Settlement), shall be construed to impose any rights or obligations on the Parties with respect to anti-dumping and countervailing duty measures.
Annex 8.7. COUNTRY SPECIFIC DEFINITIONS
For the purpose of this Chapter: competent investigating authority means:
(a) in the case of Panama, the Commission for Free Competition and Consumer Affairs;
(b) in the case of Chile, Comision Nacional Encargada de Distorsiones en el Precio de las Mercancias Importadas, or their successors.
Chapter 9. TRADE AND INVESTMENT
Article 9.1. Investment Promotion Strategy
1. The Parties recognise the importance of promoting and protecting the establishment of new investments that will ensure economic development and the facilitation of trade between the two Parties.
2. In this regard, the Parties shall implement cooperation plans and programmes to enhance the purpose described in the previous paragraph.
Article 9.2. Scope of Application (2)
1. The Parties confirm the existing rights and obligations acquired under the "Agreement between the Republic of Chile and the Republic of Panama for the Promotion and Reciprocal Protection of Investments", signed in the city of Santiago, Chile, on November 8, 1996.
2. The Parties shall examine the possibility of evaluating the Convention referred to in the previous paragraph with a view to improving the rules and disciplines set out therein.
3. Based on the provisions of Article 12.1 (Free Trade Commission) the Parties agree to deepen ties for the promotion and establishment of investments from investors of both Parties.
Chapter 10. CROSS-BORDER TRADE IN SERVICES
Article 10.1. Scope of Application
1. This Chapter applies to measures adopted or maintained by a Party affecting cross-border trade in services by a service supplier of the other Party. Such measures include measures affecting:
(a) the production, distribution, marketing, sale and supply of a service;
(b) the purchase or use of, or payment for, a service;
(c) access to and use of distribution and transmission systems, or telecommunications networks and services related to the supply of a service;
(d) the presence in its territory of a service supplier of the other Party; and
(e) the provision of a bond or other form of financial security as a condition for the provision of a service.
2. For the purposes of this Chapter, measures adopted or maintained by a Party shall mean measures adopted or maintained by a Party means measures adopted or maintained by:
(a) governments or authorities at central or local level; and
(b) non-governmental institutions in the exercise of powers delegated by governments or authorities at central or local level.
3 This Chapter does not apply to:
(a) financial services, as defined in the Annex on Financial Services of the GATS Agreement;
(b) air services, including domestic and international air transport services, scheduled and non-scheduled, and related support services for air services, except:
(i) aircraft repair and maintenance services during the period when an aircraft is being withdrawn from service, and
(ii) specialised air services;
(c) government purchases made by a Party or State enterprise; or
(d) subsidies or grants provided by a Party or State enterprise, including government-supported loans, guarantees and insurance.
4. This Chapter does not impose any obligation on a Party with respect to a national of the other Party who seeks to enter its labour market or who is permanently employed in its territory, or to confer any rights on such a national, with respect to such access or employment.
5. This Chapter does not apply to services supplied in the exercise of governmental authority. A service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers.
Article 10.2. National Treatment
Each Party shall accord to service suppliers (3) of the other Party treatment no less favourable than that it accords, in like circumstances, to its service suppliers.
Article 10.3. Most-favoured-nation Treatment
Each Party shall accord to service suppliers (4) of the other Party treatment no less favourable than that it accords, in like circumstances, to service suppliers of a non-Party.
Article 10.4. Local Presence
No Party may require a service supplier of the other Party to establish or maintain a representative office or other business or to reside in its territory as a condition for the cross- border supply of a service.
Article 10.5. Non-conforming Measures
1. Articles 10.2, 10.3 and 10.4 do not apply to:
(a) any measure non-conforming existing which is maintained by:
(i) the government or central level authorities of a Party, as set out in its Schedule to Annex I,
(ii) a local level government of a Party;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c) the modification of any non-conforming measure referred to in subparagraph (a) provided that such modification does not decrease the degree of conformity of the measure, as in effect immediately prior to the modification, with Articles 10.2, 10.3, and 10.4.
2. Articles 10.2, 10.3 and 10.4 do not apply to any measures that a Party adopts or maintains, in relation to sectors, sub-sectors or activities, as set out in its Schedule to Annex IL.
Article 10.6. Non-discriminatory Quantitative Restrictions
Each Party shall draw up a list of existing measures that constitute non-discriminatory quantitative restrictions, which are set out in Annex III.
Article 10.7. Transparency In the Development and Application of Regulations (5)
1 In addition to Chapter 11 (Transparency), each Party shall establish or maintain appropriate mechanisms to respond to enquiries from interested persons concerning its regulations relating to matters covered by this Chapter.
2. For the implementation of this commitment, the Parties shall establish appropriate mechanisms for small administrative bodies, taking into account possible budgetary and resource constraints.
Article 10.8. National Regulations
1. Where a Party requires authorisation for the supply of a service, the competent authorities of that Party shall, within a reasonable period of time after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision regarding the application. Upon request of such applicant, the competent authorities of the Party shall, without undue delay, provide information concerning the status of the application. This obligation shall not apply to authorisation requirements that fall within the scope of Article 10.5.2 (Non-Compliant Measures).
2. In order to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, each Party shall endeavour to ensure, as appropriate to each specific sector, that any such measures it adopts or maintains:
(a) be based on objective and transparent criteria, such as competence and capacity to provide the service;
(b) not more burdensome than necessary to ensure quality of service; and
(c) in the case of licensing procedures, do not in themselves constitute a restriction on the supply of the service.
3. If the results of negotiations related to Article VI:4 of the GATS or the outcome of any similar negotiations conducted in another multilateral forum in which both Parties participate enter into force, this Article shall be amended, as appropriate, after consultations between the Parties, to give effect to those results in accordance with this Agreement. The Parties agree to coordinate, as appropriate, in such negotiations.
Article 10.9. Mutual Recognition
1. In order to ensure the appropriate quality of their professional service suppliers, the Parties shall encourage relevant bodies to develop mutually acceptable mechanisms, standards and criteria for accreditation and certification:
(a) of educational institutions or academic programmes recognised by each State, so as to preserve the quality of post-secondary education provided; and
(b) licensing and authorisation of professional service suppliers of the other Party.
2. Where a Party autonomously recognises, by means of an agreement or arrangement, education or experience obtained, qualifications completed, licences or certificates granted in the territory of a non-Party, nothing in Article 10.3 (Most-Favoured-Nation Treatment) shall be construed to require that the same treatment be extended to service suppliers of the other Party.
3. Notwithstanding the preceding paragraphs, neither Party shall grant recognition of professional qualifications, authorisations or certifications in a manner that would constitute a means of discrimination against service suppliers of the other Party; or as a disguised restriction on trade in services.
Article 10.10. Denial of Benefits
Subject to Article 13.4 (Consultations), a Party may deny the benefits of this Chapter to:
(a) service suppliers of the other Party where the service is being supplied by an enterprise owned or controlled by persons of a non-Party and the enterprise does not have substantial business activities in the territory of the other Party; or
(b) service suppliers of the other Party where the service is supplied by an enterprise owned or controlled by persons of the denying Party and the enterprise does not have substantial business activities in the territory of the other Party.
Article 10.11. Definitions
For the purposes of this Chapter:
cross-border trade in services or cross-border supply of a service means the provision of a service:
(a) from the territory of one Party into the territory of the other Party;
(b) in the territory of a Party, by a person of that Party, to a person of the other Party; or
(c) by a national of a Party in the territory of the other Party;
but does not include the supply of a service in the territory of a Party through an investment in that territory;
enterprise means an enterprise as defined in Article 2.1 (Definitions of general application) and a branch of an enterprise located in the territory of a Party established under the laws of that Party;
enterprise of a Party means an enterprise incorporated or organised under the laws of a Party and branches located in the territory of a Party established under the laws of that Party;
service supplier of a Party means a person of the Party that intends to supply or does supply a service;
quantitative restriction means a non-discriminatory measure imposing limitations on:
(a) the number of service providers, whether through a quota, monopoly or economic necessity test or by any other quantitative means; or
(b) the operations of any service provider, whether through a fee or economic needs test or by any other quantitative means;
specialised air services means any air services other than transport, such as firefighting, spraying, scenic flights, aerial surveying, aerial mapping, aerial photography, aerial photography, parachute service, glider towing, aerial services for log transport and construction and other air services related to agriculture, industry and inspection; and
professional services means services the provision of which requires specialised higher education or training and the exercise of which is authorised or restricted by a Party, but does not include services provided by persons engaged in a trade or to crew members of merchant ships and aircraft.
Chapter 11. TRANSPARENCY
Article 11.1. Contact Points
1. Each Party shall designate a contact point to facilitate communications between the Parties on any matter covered by this Agreement.
2. Upon request of the other Party, the point of contact shall indicate the unit or official responsible for the matter and provide such support as may be required to facilitate communication with the requesting Party.
Article 11.2. Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application that relate to any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.
2. To the extent possible, each Party:
(a) publish in advance any measures, referred to in paragraph 1, which it intends to take; and
(b) provide interested persons and the other Party with a reasonable opportunity to comment on the proposed measures.
Article 11.3. Notification and Provision of Information
1. Each Party shall notify the other Party, to the extent practicable, of any existing or proposed measures that the Party considers would substantially affect the operation of this Agreement, or otherwise substantially affect the interests of the other Party under this Agreement.
2. A Party shall, on request of the other Party, provide information and promptly respond to its questions concerning any measure in force or proposed, whether or not the other Party has previously been notified of that measure.
3. Any notification or provision of information referred to in this Article shall be without prejudice to whether or not the measure is compatible with this Treaty.
Article 11.4. Administrative Procedures
In order to administer in a consistent, impartial and reasonable manner all measures of general application affecting matters covered by this Agreement, each Party shall ensure that, in its administrative procedures applying the measures referred to in Article 11.2 (Publication) with respect to particular persons, goods or services of the other Party in specific cases:
(a) whenever possible, persons of the other Party who are directly affected by a proceeding shall, in accordance with domestic provisions, be given reasonable notice of the commencement of the proceeding, including a description of the nature of the proceeding, a statement of the legal basis under which the proceeding is being conducted, and a general description of all issues in dispute;
(b) where time, the nature of the proceeding and the public interest permit, such persons are given a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action; and
(c) its procedures are in accordance with that Party's domestic law.
Article 11.5. Review and Challenge
1. Each Party shall establish or maintain judicial, quasi-judicial, or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions relating to matters covered by this Agreement. Such tribunals shall be impartial and not connected with the administrative law enforcement agency or authority, and shall have no substantial interest in the outcome of the matter.
2. Each Party shall ensure that, before such courts or in such proceedings, the parties have the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions or, in cases where required by its domestic law, on the record compiled by the administrative authority.
3. Each Party shall ensure, subject to challenge or further review as provided for in its domestic law, that such determinations are implemented by, and govern the practice of, the unit or authority with respect to the administrative action which is the subject of the decision.
Article 11.6. Definitions
For the purposes of this Chapter: administrative decision of general application means an administrative decision or interpretation that applies to all persons and facts generally within its scope and that establishes a rule of conduct, but does not include:
(a) a determination or ruling made in an administrative proceeding that applies to particular persons, goods or services of the other Party, in a specific case; or
(b) a decision that decides on a particular act or practice.
Chapter 12. TREATY ADMINISTRATION
Article 12.1. Free Trade Commission
1. The Parties establish the Free Trade Commission, composed of ministerial-level representatives of the Parties, or their designees.
2. The Commission:
(a) oversee the implementation of this Treaty; monitor the further development of this Treaty;
(b) attempt to resolve disputes that may arise in relation to the interpretation or application of this Agreement;
(c) oversee the work of all committees and working groups established under this Treaty;
(d) determine the amount of remuneration and expenses to be paid to the arbitrators; and
(e) consider any other matter that may affect the operation of this Treaty.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) in accordance with Annex 12.1 (Implementation of modifications approved by the Commission), advance the implementation of the objectives of this Treaty by approving any modifications to:
(i) the Schedules set out in Annex 3.3 (Tariff elimination), by accelerating tariff elimination,
(ii) the rules of origin set out in Annex 4.1 (Specific Rules of Origin),
(iii) The Model Rules of Procedure set out in Annex 13.9 (Model Rules of Procedure for Arbitral Tribunals),
(iv) the Uniform Regulations and
(v) Annexes I, II and III of Chapter 10 (Cross-Border Trade in Services); (c) seek advice from non-governmental individuals or groups; and (d) if agreed by the Parties, take any other action in the exercise of its functions.
4. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by mutual agreement.
5. The Commission shall meet at least once a year in regular session. The regular meetings of the Commission shall be chaired successively by each Party.
Article 12.2. Administration of the Dispute Settlement Procedures
1. Each Party shall designate an office to provide administrative assistance to the arbitration panels established under Chapter 13 (Dispute Settlement) and to perform such other functions as may be directed by the Commission.
2. Each Party shall be responsible for the operation and costs of its designated office and shall notify the Commission of the location of its office.
Annex 12.1. IMPLEMENTATION OF THE AMENDMENTS APPROVED BY THE COMMISSION
For the purpose of this Chapter:
(a) Chile shall implement the decisions of the Commission referred to in Article 12.1.3(b) through Implementing Agreements, in accordance with the Political Constitution of the Republic of Chile; and
(b) Panama shall implement the decisions of the Commission referred to in Article 12.1.3(b) in accordance with its legislation.
Chapter 13. DISPUTE SETTLEMENT
Article 13.1. General Provision
The Parties shall at all times endeavour to reach agreement on the interpretation and application of this Treaty and shall make every effort, through cooperation and consultations, to reach a mutually satisfactory solution on any matter that might affect its operation.