Chile - China FTA (2005)
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1. The Parties hereby establish the Committee on Technical Barriers to Trade, comprising representatives of each Party.
2. For purposes of this Article, the Committee shall be coordinated by:
(a) in the case of China, the Director General of Inspection & Quarantine clearance Department of AQSIQ, or its successor; and
(b) in the case of Chile, the Ministry of Economy (Ministerio de Economia) through the Head of Foreign Trade Department (Departamento de Comercio Exterior, or its successor.
3. In order to facilitate the communication and ensure the proper functioning of the Committee, the Parties will designate a contact person no later than two months following the date of entry into force of this Agreement.
4. The Committee's functions shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) promptly addressing any issue that a Party raises related to the development, adoption, application, or enforcement of technical regulations and conformity assessment procedures;
(c) enhancing cooperation in the development and improvement of technical regulations and conformity assessment procedures;
(d) where appropriate, facilitating sectorial cooperation among governmental and non-governmental conformity assessment bodies in the Parties' territories;
(e) exchanging information on developments in non-governmental, regional, and multilateral fora engaged in activities related to standardization, technical regulations, and conformity assessment procedures;
(f) taking any other steps which the Parties consider to assist them in implementing the TBT Agreement and in facilitating trade in goods between them;
(g) consulting on any matter arising under this Chapter, upon a Party's request;
(h) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments;
(i) reporting to the Commission on the implementation of this Chapter, as it considers appropriate; and
(j) exchanging information on charge parameters or services fees of compulsory conformity assessment procedures performed by governmental bodies.
5. Where the Parties have had recourse to consultations under subparagraph (g) of paragraph 4, such consultations shall, upon agreement by the Parties, constitute consultations under Article 82.
6. A Party shall, upon request, give favorable consideration to any sector-specific proposal the other Party makes for further cooperation under this Chapter.
7. The Committee shall meet at least once a year unless the Parties otherwise agree. These meetings may be held via teleconference, videoconference, or through any other means, as mutually determined by the Parties. By mutual agreement, ad hoc working groups may be established if necessary.

Article 70. Information Exchange

Any information or explanation provided upon request of a Party pursuant to the provisions of this Chapter, shall be provided in print or electronically within a reasonable period of time agreed between the Parties.

Article 71. Definitions

For purposes of this Chapter:
(a) TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement; and
(b) the definitions of Annex I of the TBT Agreement shall apply.

Chapter IX. Transparency

Article 72. 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 contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.

Article 73. Publication

1. Each Party shall ensure that its measures respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons of the other Party and the other Party to become acquainted with them.
2. To the extent possible, each Party shall provide a reasonable period for the other Party and interested persons of the other Party to comment to the appropriate authorities before the aforementioned laws, regulations, procedures and administrative rulings of general application are implemented.

Article 74. Notification and Provision of Information

1. To the extent possible, each Party shall notify the other Party of any actual measure or proposed measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect the other Party's legitimate interests under this Agreement.
2. Upon request of the other Party, to the extent possible, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, that the other Party considers might materially affect the operation of this Agreement or otherwise substantially affect its legitimate interests under this Agreement, whether or not the other Party has been previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
4. The information referred to under this Article shall be considered to have been provided when it has been made available by appropriate notification to the WTO or when it has been made available on the official, public and fee-free accessible website of the Party concerned.

Article 75. Administrative Proceedings

With a view to administering 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 proceedings applying measures referred to in Article 73 to particular persons or goods of the other Party in specific cases that:
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and
(c) its procedures are in accordance with domestic law.

Article 76. Review and Appeal

1. Each Party shall establish or maintain tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions relating to the implementation of laws, regulations, procedures, and administrative rulings of general application respecting any matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action that is the subject of the decision.

Article 77. Relation with other Chapters

1. This Chapter will not apply to Chapter XIII.
2. In the event of any inconsistency between this Chapter and another Chapter in this Agreement, the other Chapter shall prevail to the extent of the inconsistency.

Article 78. Definitions

For purposes of this Chapter: administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding ,where applicable, that applies to a particular person, good, or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice; and measures means laws, regulations, procedures, and administrative rulings of general application.

Chapter X. Dispute Settlement

Article 79. Cooperation

The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.

Article 80. Scope of Application

Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply:
(a) with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement; and
(b) wherever a Party considers that a measure of the other Party is inconsistent with the obligations of this Agreement or that the other Party has failed to carry out its obligations under this Agreement.

Article 81. Choice of Forum

1. Where a dispute regarding any matter arises under this Agreement and under another free trade agreement to which both Parties are parties or the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.
2. Once the complaining Party has requested a panel under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of the others.

Article 82. Consultations

1. Either Party may request in writing consultations with the other Party with respect to any measure that it considers might affect the operation of this Agreement.
2. The requesting Party shall set out the reasons for the request, including identification of the measure at issue and an indication of the legal basis for the complaint, and shall deliver the request to the other Party.
3. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of any matter through consultations under this Article or other consultative provisions of this Agreement. To this end, the Parties shall:
(a) provide sufficient information to enable a full examination of how the measure might affect the operation and application of this Agreement; and
(b) treat any confidential information exchanged in the course of consultations on the same basis as the Party providing the information.
4. In consultations under this Article, a Party may request the other Party to make available personnel of its government agencies or other regulatory bodies who have expertise in the matter subject to consultations.
5. The consultations shall be confidential and are without prejudice to the rights of any Party in any further proceedings.

Article 83. Commission - Good Offices, Conciliation, and Mediation

1. A Party may request in writing a meeting of the Commission if the Parties fail to resolve a matter pursuant to Article 82 within:
(a) 60 days of receipt of a request for consultations;
(b) 15 days of receipt of a request for consultations in matters regarding perishable goods; or
(c) such other period as they may agree.
2. A Party may also request in writing a meeting of the Commission where consultations have been held pursuant to Article 58 or 69.
3. The requesting Party shall state in the request the measure complained of and the provisions of this Agreement considered relevant and deliver the request to the other Party. 4. Unless it decides otherwise, the Commission shall convene within 10 days of receipt of the request and shall endeavor to resolve the dispute promptly. The Commission may:
(a) call on such technical advisers or create such working groups or expert groups as it deems necessary;
(b) have recourse to good offices, conciliation, mediation; or
(c) make recommendations, as may assist the Parties to reach a mutually satisfactory resolution of the dispute.
5. The proceedings under this Article and the positions taken by the Parties during these proceedings shall be confidential and are without prejudice to the rights of any Party in any further proceedings.

Article 84. Request for an Arbitral Panel

1. If the Parties fail to resolve a matter within:
(a) 30 days of the Commission convening pursuant to Article 83;
(b) 75 days after receipt of the request for consultations under Article 82, if the Commission has not convened pursuant to Article 83;
(c) 30 days after receipt of the request for consultations under Article 82 in a matter regarding perishable goods, if the Commission has not convened pursuant to Article 83; or (d) such other period as the Parties agree, either Party may request in writing the establishment of an arbitral panel to consider the matter. The requesting Party shall state in the request the measure complained of and indicate the provisions of this Agreement that it considers relevant, and shall deliver the request to the other Party. An arbitral panel shall be established upon receipt of a request.
2. Unless the Parties otherwise agree, the arbitral panel shall be established and perform its functions in a manner consistent with the provisions of this Chapter.

Article 85. Composition of an Arbitral Panel

1. An arbitral panel shall comprise three members.
2. In the written request under Article 84, the Party requesting the establishment of an arbitral panel shall designate one member of that arbitral panel.
3. Within 15 days of the receipt of the request referred to in paragraph 2, the Party to which it was addressed shall designate one member of the arbitral panel.
4. The Parties shall designate by common agreement the appointment of the third panelist within 15 days of the appointment of the second panelist. The panelist thus appointed shall chair the arbitral panel.
5. If any member of the arbitral panel has not been designated or appointed within 30 days from the date of receipt of the request referred to in paragraph 2, at the request of any Party to the dispute the necessary designations shall be made by the Director-General of the WTO within a further 30 days.
6. The Chair of the arbitral panel shall not be a national of any of the Parties, nor have his or her usual place of residence in the territory of any of the Parties, nor be employed by any of the Parties, nor have dealt with the matter in any capacity.
7. All panelists shall:
(a) have expertise or experience in law, international trade, other matters covered by this Agreement, or the resolution of disputes arising under international trade agreements;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
(c) be independent of, and not be affiliated with or take instructions from, any Party; and (d) comply with a code of conduct in conformity with the rules established in the document WT/DSB/RC/1 of the WTO.
8. Individuals may not serve as panelists for a dispute in which they have participated pursuant to Article 83.
9. If a panelist appointed under this Article resigns or becomes unable to act, a successor panelist shall be appointed within 15 days in accordance with the selection procedure as prescribed for the appointment of the original panelist and the successor shall have all the powers and duties of the original panelist. The work of the arbitral panel shall be suspended during the appointment of the successor panelist.

Article 86. Functions of Arbitral Panel

1. The function of an arbitral panel is to make an objective assessment of the dispute before it, including an examination of the facts of the case and the applicability of and conformity with this Agreement.
2. Where an arbitral panel concludes that a measure is inconsistent with this Agreement, it shall recommend that the responding Party bring the measure into conformity with this Agreement. In addition to its recommendations the arbitral panel may suggest ways in which the responding Party could implement the recommendations.
3. The arbitral panel, in their findings and recommendations, cannot add to or diminish the rights and obligations provided in this Agreement.

Article 87. Rules of Procedure of an Arbitral Panel

1. Unless the Parties agree otherwise, the arbitral panel proceedings shall be conducted in accordance with the rules of procedure set out in Annex 7.
2. The arbitral panel shall, apart from the matters set out in this Article, regulate its own procedures in relation to the rights of the Parties to be heard and its deliberations in consultation with the Parties.
3. The arbitral panel shall take its decisions by consensus; provided that where an arbitral panel is unable to reach consensus it may take its decisions by majority vote.
4. Unless the Parties otherwise agree within 20 days from the date of receipt of the request for the establishment of the arbitral panel, the terms of reference shall be: "To examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitral panel pursuant to Article 84 and to make findings of law and fact together with the reasons therefore for the resolution of the dispute."
5. Each Party shall bear the cost of its appointed panelist and its own expenses. The cost of the chair of an arbitral panel and other expenses associated with the conduct of the proceedings shall be borne by the Parties in equal shares.

Article 88. Suspension or Termination of Proceedings

1. The Parties may agree that the arbitral panel suspends its work at any time for a period not exceeding 12 months from the date of such agreement. If the work of the arbitral panel has been suspended for more than 12 months, the authority for establishment of the arbitral panel shall lapse unless the Parties agree otherwise.
2. The Parties may agree to terminate the proceedings of an arbitral panel in the event that a mutually satisfactory solution to the dispute has been found.

Article 89. Experts and Technical Advice

1. On its own initiative unless the Parties disapprove, or upon request of a Party, the arbitral panel may seek information and technical advice on matters raised by a Party in a proceeding, from any person or body that it deems appropriate.
2. Before an arbitral panel seeks information or technical advice, it shall establish appropriate procedures in consultation with the Parties. The arbitral panel shall provide the Parties:
(a) advance notice of, and an opportunity to provide comments to the arbitral panel on, proposed requests for information and technical advice pursuant to paragraph 1; and (b) a copy of any information or technical advice submitted in response to a request pursuant to paragraph 1 and an opportunity to provide comments.
3. Where the arbitral panel takes the information or technical advice into account in the preparation of its report, it shall also take into account any comments by the Parties on the information or technical advice.

Article 90. Initial Report

1. The arbitral panel shall base its report on the relevant provisions of this Agreement and the submissions and arguments of the Parties.
2. Unless the Parties otherwise agree, the arbitral panel shall:
(a) within 120 days after the last panelist is selected; or
(b) in case of urgency including those relating to perishable goods within 60 days after the last panelist is selected, present to the Parties an initial report.
3. The initial report shall contain:
(a) findings of fact;
(b) its conclusions as to whether a Party has not conformed with its obligations under this Agreement or any other determination if requested in the terms of reference; and
(c) the recommendation of the arbitral panel on the dispute and the suggestions if requested by the Parties.
4. In exceptional cases, if the arbitral panel considers it cannot release its initial report within 120 days, or within 60 days in cases of urgency, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will release its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree.
5. Panelists may furnish separate opinions on matters not unanimously agreed.
6. A Party may submit written comments to the arbitral panel on its initial report within 14 days of presentation of the report or within such other period as the Parties may agree.
7. After considering any written comments on the initial report, the arbitral panel may reconsider its report and make any further examination it considers appropriate.

Article 91. Final Report

1. The arbitral panel shall present a final report to the Parties, including any separate opinions on matters not unanimously agreed, within 30 days of presentation of the initial report, unless the Parties otherwise agree. The final report shall be available to the public within 15 days thereafter, subject to the protection of confidential information.
2. No arbitral panel may, either in its initial report or its final report, disclose which panelists are associated with majority or minority opinions.

Article 92. Implementation of Final Report

1. On receipt of the final report of an arbitral panel, the Parties shall agree on the resolution of the dispute.
2. If in its final report the arbitral panel concludes that a Party has not conformed with its obligations under this Agreement, the resolution, whenever possible, shall be to eliminate the non-conformity.
3. Unless the Parties decide otherwise, they shall implement the recommendations contained in the final report of the arbitral panel within a reasonable period of time if it is not practicable to comply immediately.
4. The reasonable period of time shall be mutually determined by the Parties, or where the Parties fail to agree on the reasonable period of time within 45 days of the release of the arbitral panel's report, either Party may, to the extent possible, refer the matter to the original arbitral panel, which shall determine the reasonable period of time following consultation with the Parties.
5. Where there is disagreement as to the existence or consistency with this Agreement of measures taken within the reasonable period of time to comply with the recommendations of the arbitral panel, such dispute shall be referred to an arbitral panel proceeding, including wherever possible by resort to the original arbitral panel.
6. The arbitral panel shall provide its report to the Parties within 60 days after the date of the referral of the matter to it. When the arbitral panel considers that it cannot provide its report within this timeframe, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will submit its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree.

Article 93. Non-implementation - Suspension of Benefits

1. If the Party concerned fails to bring the measure found to be inconsistent with this Agreement into compliance with the recommendations of the arbitral panel under Article 90 within the reasonable period of time established in accordance with Article 92, that Party shall, if so requested, enter into negotiations with the complaining Party with a view to reaching a mutually satisfactory agreement on any necessary compensatory adjustment.
2. If there is no agreement in accordance with paragraph 1 within 20 days after receipt of the request mentioned in paragraph 1, the complaining Party may suspend the application of benefits of equivalent effect to the responding Party if the arbitral panel decides the responding Party does not implement the recommendations contained in the final report to bring the inconsistent measure into conformity within the reasonable period of time established in accordance with Article 92. The complaining Party shall notify the responding Party 30 days before suspending benefits.
3. Compensation and the suspension of benefits shall be temporary measures. Neither compensation nor the suspension of benefits is preferred to full implementation of the recommendations to bring a measure into conformity with this Agreement. Compensation and suspension of benefits shall only be applied until such time as the measure found to be inconsistent with this Agreement has been removed, or the Party that must implement the arbitral panel's recommendation has done so, or a mutually satisfactory solution is reached. 4. In considering what benefits to suspend pursuant to paragraph 2:
(a) the complaining Party should first seek to suspend benefits in the same sector(s) as that affected by the measure that the arbitral panel has found to be inconsistent with the obligations derived of this Agreement ; and
(b) if the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector(s), it may suspend benefits in other sectors. The communication in which it announces such a decision shall indicate the reasons on which it is based.
5. Upon written request of the Party concerned, the original arbitral panel shall determine whether the level of benefits to be suspended by the complaining Party is excessive pursuant to paragraph 2. If the arbitral panel cannot be established with its original members, the proceeding set out in Article 85 shall be applied.
6. The arbitral panel shall present its determination within 60 days from the request made pursuant to paragraph 5, or if an arbitral panel cannot be established with its original members, from the date on which the last panelist is selected. The ruling of the arbitral panel shall be final and binding. It shall be delivered to the Parties and be made publicly available.

Article 94. Compliance Review

1. Without prejudice to the procedures in Article 93, if the responding Party considers that it has eliminated the non-conformity that the arbitral panel has found, it may provide written notice to the complaining Party with a description of how nonconformity has been removed. If the complaining Party has disagreement, it may refer the matter to the original arbitral panel within 60 days after receipt of such written notice. Otherwise, the complaining Party shall promptly stop the suspension of benefits.
2. The arbitral panel shall release its report within 90 days after the referral of the matter. If the arbitral panel concludes that the responding Party has eliminated the nonconformity, the complaining Party shall promptly stop the suspension of benefits.

Article 95. Private Rights

Neither Party may provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.

Chapter XI. Administration

Article 96. Trade and Economic Mixed Commission

1. The Parties hereby incorporate the Trade and Economic Mixed Commission (Mixed Commission) into this Agreement.
2. The Mixed Commission was established according to the Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Chile, signed in Santiago on April 20 1971.
3. The Mixed Commission is composed of officials as follows:
(a) in the case of China, the high ranking official of Ministry of Commerce; and
(b) in the case of Chile, the Director General of International Economic Affairs, or his/her designee.
4. The Mixed Commission shall:
(a) hear the reports of the Free Trade Commission;
(b) provide guidance to the work of the Free Trade Commission;
(c) consider any other matter that may affect the operation of this Agreement; and
(d) deal with any other issues related to bilateral cooperation in the area of economy, trade and investment.

Article 97. The Free Trade Commission

1. The Parties hereby establish the Free Trade Commission (Commission), comprising representatives of the Parties as follows:
(a) in the case of China, the Ministry of Commerce (MOFCOM); and
(b) in the case of Chile, the General Directorate of International Economic Affairs (DIRECON).
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement;
(c) seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) supervise the work of all committees and working groups established under this Agreement;
(e) establish the amounts of remuneration and expenses that will be paid to panelists; and (f) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) further the implementation of the Agreement's objectives by approving any modifications of:
(i) the Schedules attached to Annex 1, by accelerating tariff elimination,
(ii) the Rules of Origin established in Annex 3, and
(iii) Annex 5, in the case of Chile, these modifications shall be made in accordance with Annex 8;
(c) seek the advice of the public; and
(d) take such other action in the exercise of its functions as the Parties may agree.
4. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by mutual agreement.
5. The Commission shall convene at least once a year in regular session. Regular sessions of the Commission shall be chaired alternatively by each Party.

Article 98. Administration of Dispute Settlement Proceedings

1. Each Party shall designate an office that shall provide administrative assistance to arbitral panels established under Chapter X and perform such other functions as the Commission may direct.
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.

Chapter XII. Exceptions

Article 99. General Exceptions

For the purpose of this Agreement, Article XX of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

Article 100. Essential Security

Nothing in this Agreement shall be construed:
(a) to require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests;
(b) to prevent any Party from taking any action which it considers necessary for the protection of its essential security interests
(i) relating to fissionable materials or the materials from which they are derived,
(ii) relating to traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment,
(iii) taken in time of war or other emergency in international relations; or
(c) to preclude a Party from applying measures that it considers necessary for the fulfillment of its obligations under the United Nations Charter with respect to the maintenance or restoration of international peace or security, or the protection of its own essential security interests.

Article 101. Taxation

1. For the purposes of this Article: tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement in force between the Parties; and taxation measures do not include an "import customs duty" as defined in Article 5.
2. Except as provided in this Article, nothing in this Agreement shall apply to taxation measures.
3. This Agreement shall only grant rights or impose obligations with respect to taxation measures where corresponding rights or obligations are also granted or imposed under Article III of GATT 1994.
4. Nothing in this Agreement shall affect the rights and obligations of the Parties under any tax convention in force between the Parties. In the event of any inconsistency relating to a taxation measure between this Agreement and such tax convention, the latter shall prevail to the extent of the inconsistency. In the case of a tax convention between the Parties, the competent authorities under that convention shall have sole responsibility for determining whether any inconsistency exists between this Agreement and that convention.

Article 102. Measures to Safeguard the Balance of Payments

Where the Party is in serious balance of payments and external financial difficulties or threat thereof, it may, in accordance with the WTO Agreement and consistent with the Articles of Agreement of the International Monetary Fund, adopt measures deemed necessary.

Article 103. Disclosure of Information

Nothing in this Agreement shall be construed to require a Party to furnish or allow access to confidential information the disclosure of which would impede law enforcement or would be contrary to the public interests, the Party's law protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions or which prejudice legitimate commercial interests of particular enterprises, public or private.

Section CHAPTER XIII. Cooperation

Article 104. General Objectives

1. The Parties shall establish close cooperation aimed inter alia at:
(a) promoting economic and social development;
(b) stimulating productive synergies, creating new opportunities for trade and investment and promoting competitiveness and innovation;
(c) increasing the level of and deepening cooperation actions while taking into account the association relation between the Parties;
(d) reinforce and expand cooperation, collaboration and mutual interchanges in the cultural areas;
(e) encouraging the presence of the Parties and their goods and services in their respective markets of Asia, Pacific and Latin America; and
(f) increasing the level of and deepening collaboration activities among the Parties in areas of mutual interest.
2. The Parties reaffirm the importance of all form of cooperation, with particular attention to economic, trade, financial, technical, educational and cultural cooperation, as means to contribute to implementing the objectives and principles derived from this Agreement.

Article 105. Economic Cooperation

1. The aims of economic cooperation will be:
(a) to build on existing agreements or arrangements already in place for trade and economic cooperation; and
(b) to advance and strengthen trade and economic relations between the Parties.
2. In pursuit of the objectives in Article 104, the Parties will encourage and facilitate, as appropriate, the following activities, including, but not limited to:
(a) policy dialogue and regular exchanges of information and views on ways to promote and expand trade in goods and services between the Parties;
(b) keeping each other informed of important economic and trade issues, and any impediments to furthering their economic cooperation;
(c) providing assistance and facilities to businesspersons and trade missions that visit each other's country with the knowledge and support of the relevant agencies;
(d) supporting dialogue and exchanges of experience among the respective business communities of the Parties;
(e) establishing and developing mechanisms for providing information and identifying opportunities for business cooperation, trade in goods and services, investment, and government procurement; and
(f) stimulating and facilitating actions of public and /or private sectors in areas of economic interest.

Article 106. Research, Science and Technology

1. The aims of cooperation in research, science and technology, carried out in the mutual interest of the Parties and in compliance with their policies, particularly as regards the rules for use of intellectual property resulting from research, will be:
(a) to build on existing agreements already in place for cooperation on research, science and technology and the follow up done by the existing Joint Commission for Scientific and Technical Cooperation between the Parties;
(b) to encourage, where appropriate, government agencies, research institutions, universities, private companies and other research organisations in each other's country to conclude direct arrangements in support of cooperative activities, programmes or projects within the framework of this Agreement, specially related to trade and commerce; and
(c) to focus cooperative activities towards sectors where mutual and complementary interests exist, with special emphasis on information and communication technologies and software development to facilitate trade and commerce between the Parties.
2. In pursuit of the objectives in Article 104, the Parties will encourage and facilitate, as appropriate, the following activities including, but not limited to:
(a) identifying strategies, in consultation with universities and research centres, to encourage joint postgraduate studies and research visits;
(b) exchange of scientists, researchers and technical experts;
(c) exchange of information and documentation; and
(d) promoting public/private sector partnerships in support of the development of innovative products and services and study joint efforts to enter into new markets.

Article 107. Education

1. The aims of education cooperation will be:
(a) to build on existing agreements or arrangements already in place for cooperation in education; and
(b) to promote networking, mutual understanding and close working relationships in the area of education between the Parties.
2. In pursuit of the objectives in Article 104, the Parties shall encourage and facilitate, as appropriate, exchanges between and among their respective education-related agencies, institutions, organizations, in fields such as:
(a) education quality assurance processes;
(b) on-line and distance education at all levels;
(c) primary and secondary education systems;
(d) higher education;
(e) technical education; and
(f) industry collaboration for technical training.
3. Cooperation in education can focus on:
(a) exchange of information, teaching aids, and demonstration materials;
(b) joint planning and implementation of programs and projects, and joint coordination of targeted activities in agreed fields;
(c) development of collaborative training, joint research and development, across graduate and postgraduate studies;
(d) exchange of teaching staff, administrators, researchers and students in relation to programs that will be of mutual benefit;
(e) gaining understanding of each Parties' education systems and policies including information relevant to the interpretation and evaluation of qualifications, potentially leading to discussions between institutions of higher learning on academic credit transfer and the possibility of mutual recognition of qualifications; and
(f) collaboration on the development of innovative quality assurance resources to support learning and assessment, and the professional development of teachers and trainers in training.

Article 108. Labor, Social Security and Environmental Cooperation

The Parties shall enhance their communication and cooperation on labor, social security and environment through both the Memorandum of Understanding on Labor and Social Security Cooperation, and the Environmental Cooperation Agreement between the Parties.

Article 109. Small and Medium-sized Enterprises

1. The Parties will promote a favorable environment for the development of small and medium-sized enterprises (SMEs).
2. Cooperation shall be oriented to share knowledge and good practices with SMEs. These practices should promote partnership and productive chain linkage development, downstream and upstream oriented, to improve SMEs productivity, development of capacities to increase SMEs access to markets, integrate technology to labor intensive processes and human resources development to increase their knowledge about Chinese and Chilean markets.
3. Co-operation shall be developed, among other activities, through:
(a) information exchange;
(b) conferences, seminars, experts dialogue and training programs with experts; and
(c) promoting contacts between economic operators, encouraging prospecting for industrial and technical opportunities;
4. Co-operation shall include, among other subjects:
(a) designing and develop mechanisms to encourage partnership and productive chain linkage development;
(b) defining and develop methods and strategies for clusters development;
(c) increasing access to information regarding mandatory procedures and any other relevant information for an SME exporter;
(d) defining technological transference: programs oriented to transfer technological innovation to SMEs and to improve their productivity;
(e) increasing access to information on technological promotion programs for SMEs and financial support and encouragement programs for SMEs;
(f) supporting new exporting SMEs (sponsorship, exporters club); and
(g) identifying specific areas subject to potential improvement.

Article 110. Cultural Cooperation

1. The aims of cultural cooperation shall be:
(a) to build on existing agreements or arrangements already in place for cultural cooperation; and
(b) to promote information and cultural exchanges between the Parties.
2. In pursuit of the objectives in Article 104, the Parties will encourage and facilitate, as appropriate, the following activities, including, but not limited to:
(a) encouraging dialogue on cultural policies and promotion of local culture;
(b) encouraging exchange of cultural events and promote awareness of artistic works;
(c) encouraging exchange of experience in conservation and restoration of national heritage; (d) encouraging exchange of experience on management for the arts;
(e) encouraging cooperation in the audio-visual field, mainly through training programs in the audio-visual sector and means of communication, including co-production, training, development and distribution activities; and
(f) having a consultation mechanism between the two countries' culture authorities.

Article 111. Intellectual Property Rights

1. The aim of cooperation on intellectual property rights will be:
(a) to build on the foundations established in existing international agreements in the field of intellectual property, to which both are parties, including the TRIPS Agreement and, particularly, on the principles set out in the Declaration on the TRIPS Agreement on Public Health, adopted on November 14, 2001, by the WTO at the Fourth WTO Ministerial held in Doha, Qatar, and the Decision on the Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, adopted on August 30, 2003;
(b) to promote economic and social development, particularly in the new digital economy, technological innovation as well as the transfer and dissemination of technology to the mutual advantage of technology producers and users, and to encourage the development of social economic well-being, and trade;
(c) to achieve a balance between rights of right holders and the legitimate interests of users and the community with regard to protected subject matters;
(d) to provide certainty for right holders and users of intellectual property over the protection and enforcement of intellectual property rights;
(e) to encourage the rejection of practices or conditions pertaining to intellectual property rights which constitute abuse of rights, restrain competition or may impede transfer and dissemination of new developments; and
(f) to promote the efficient registration of intellectual property rights.
2. The Parties will cooperate, on mutually agreed terms and subject to the availability of appropriated funds, by means of:
(a) educational and dissemination projects on the use of intellectual property as a research and innovation tool;
(b) training and specialization courses for public servants on intellectual property rights and other mechanisms;
(c) exchange of information on:
(i) implementation of intellectual property systems,
(ii) appropriate initiatives to promote awareness of intellectual property rights and systems, and
(iii) developments on intellectual property policy. Such developments may, for example, include, but not be limited to, the implementation of appropriate limitations and exceptions under copyright law, and the implementation of measures concerning the appropriate protection of digital rights management information;
(d) notification of policy dialogue on initiatives on intellectual property in multilateral and regional fora;
(e) notification of contact points for the enforcement of intellectual property rights;
(f) reports regarding on developments, improvements, relevant jurisprudence and bills in Congress;
(g) enhancing knowledge of electronic systems used for the management of intellectual property; and
(h) other activities and initiatives as may be mutual determined between the Parties.

Article 112. Promoting Investment

1. The aim of cooperation shall be to help the Parties to promote, within the bounds of their own competence, an attractive and stable reciprocal investment climate.

2. The Parties will promote the establishment of information exchange channels and facilitate full communication and exchange in the following aspects:

(a) communication on investment policy laws, as well as, economic trade and commercial information;

(b) exploring the possibility of establishing investment promotion mechanisms; and

(c) providing national information for the potential investors and on investment cooperative parties.

Article 113. Mining and Industrial Cooperation

1. The aims of cooperation in mining and industry sectors carried out in the mutual interest of the Parties and in compliance with their policies, will be:
(a) to encourage, where appropriate, government agencies, research institutions, universities, private companies and other research organizations in each other's country to conclude direct arrangements in support of cooperative activities, programs, projects or joint ventures within the framework of this Agreement;
(b) to focus cooperative activities towards sectors where mutual and complementary interests exist; and
(c) to build on existing agreements and arrangements already in place between the Parties such as intergovernmental protocols, or association agreements between copper companies and corporations of the Parties.
2. Mining and Industrial cooperation may include work in, but not be limited to, the following areas:
a) bio-mining (mining using biotechnology procedures);
b) mining techniques, specially underground mining, and conventional metallurgy;
c) productivity in mining;
d) industrial robotics for mining and other sector applications;
e) informatics and telecommunication applications for mining and industrial plant production; and
f) software development for mining and industrial applications.
3. In pursuit of the objectives in Article 104, the Parties will encourage and facilitate, as appropriate, the following activities including, but not limited to:
(a) exchange of information, documentation and institutional contacts in areas of interest; (b) mutual access to academic, industrial and entrepreneurial networks in the area of mining and industry;
(c) identification of strategies, in consultation with universities and research centres, that encourage joint postgraduate studies, research visits and joint research projects;
(d) exchange of scientists, researchers and technical experts;
(e) promotion of public/private sector partnerships and joint ventures in the support of the development of innovative products and services specially related to productivity in the sector activities;
(f) technology transfer in the areas mentioned in paragraph 2; and
(g) designing of innovation technology models based in public/private cooperation and association ventures.

Article 114. Mechanisms for Cooperation

1. The Parties will establish a national contact point to facilitate communication on possible cooperation activities. The national contact point will work with government agencies, private sector representatives and educational and research institutions in the operation of this Chapter.
2. For the purposes of this Chapter, the Commission shall have, the following functions:
(a) to oversee the implementation of the cooperation framework agreed by the Parties;
(b) to encourage the Parties to undertake cooperation activities under the cooperation framework agreed by the Parties;
(c) to make recommendations on the cooperation activities under this Chapter, in accordance with the strategic priorities of the Parties; and
(d) to review through regular reporting from each Party the operation of this Chapter and the application and fulfillment of its objectives between the relevant institutions (including but not limited to the relevant government agencies, research institutes, and universities) of the Parties to help foster closer cooperation in thematic areas.

Article 115. Dispute Settlement

No Party shall have recourse to Chapter X for any issue arising from or relating to this Chapter.

Chapter XIV. Final Provisions

Article 116. Annexes and Footnotes

The annexes and footnotes to this Agreement constitute an integral part of this Agreement.

Article 117. Amendments

1. The Parties may agree on any modification of or addition to this Agreement.
2. When so agreed, and entered into force according to Article 119, a modification or addition shall constitute an integral part of this Agreement.

Article 118. Amendment of the Wto Agreement

If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended, the Parties shall consult on whether to amend this Agreement.

Article 119. Entry Into Force and Termination

1. The entry into force of this Agreement is subject to the completion of necessary domestic legal procedures by each Party.
2. This Agreement shall enter into force 60 days after the date on which the Parties exchange written notification that such procedures have been completed, or after such other period as the Parties may agree.
3. Either Party may terminate this Agreement by written notification to the other Party. This Agreement shall expire 180 days after the date of such notification.

Article 120. Future Work Program

Unless otherwise agreed by the Parties, they will negotiate trade in services and investment after the conclusion of the negotiations of this Agreement.

Article 121. Authentic Texts

This Agreement shall be done in Chinese, Spanish and English. The three texts of this Agreement are equally authentic. In the event of divergence, the English text shall prevail.

Conclusion

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.

DONE at Pusan, Republic of Korea, in duplicate, this eighteenth day of November two thousand and five.

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  • Chapter   I Initial Provisions 1
  • Article   1 Establishment of a Free Trade Area 1
  • Article   2 Objectives 1
  • Article   3 Relation to other Agreements 1
  • Article   4 Extent of Obligations 1
  • Chapter   II General Definitions 1
  • Article   5 Definitions of General Application 1
  • Chapter   III National Treatment and Market Access for Goods 1
  • Article   6 Scope and Coverage 1
  • Article   7 National Treatment 1
  • Article   8 Tariff Elimination 1
  • Article   9 Administrative Fees and Formalities 1
  • Article   10 Geographical Indications 1
  • Article   11 Special Requirements Related to Border Measures 1
  • Article   12 Agricultural Export Subsidies 1
  • Article   13 Committee on Trade In Goods 1
  • Article   14 Definitions 1
  • Chapter   IV Rules of Origin 1
  • Article   15 Originating Goods 1
  • Article   16 Wholly Obtained Goods 1
  • Article   17 Regional Value Content (rvc) 1
  • Article   18 Product Specific Rules 1
  • Article   19 Operations That Do Not Confer Origin 1
  • Article   20 Accumulation 1
  • Article   21 De Minimis 1
  • Article   22 Sets 1
  • Article   23 Accessories, Spare Parts, and Tools 1
  • Article   24 Packaging Materials and Containers for Retail Sale 1
  • Article   25 Packing Materials and Containers for Shipment 1
  • Article   26 Neutral Elements 1
  • Article   27 Direct Transport 1
  • Article   28 Exhibitions 1
  • Article   29 Definitions 1
  • Chapter   V Procedures Related to Rules of Origin 1
  • Article   30 Certificate of Origin 1
  • Article   31 Refund of Import Customs Duties or Deposit 1
  • Article   32 Exceptions from Certificate of Origin 1
  • Article   33 Supporting Documents 1
  • Article   34 Obligations Regarding Importations 1
  • Article   35 Invoicing by a Non-party Operator 1
  • Article   36 Preservation of Certificate of Origin and Supporting Documents 1
  • Article   37 Cooperation and Mutual Assistance 1
  • Article   38 Verification of Origin 1
  • Article   39 Penalties 1
  • Article   40 Confidentiality 1
  • Article   41 Advance Rulings 1
  • Article   42 Other Customs Issues Related to Rules of Origin 1
  • Article   43 Transitional Provision for Goods In Transit or Storage 1
  • Chapter   VI Trade Remedies 1
  • Article   44 Imposition of a Bilateral Safeguard Measure 1
  • Article   45 Standards for a Definitive Bilateral Safeguard 1
  • Article   46 Investigation Procedures and Transparency Requirements 1
  • Article   47 Provisional Measures 1
  • Article   48 Notification 1
  • Article   49 Compensation 1
  • Article   50 Definitions 1
  • Article   51 Global Safeguard Measures 1
  • Article   52 Anti-dumping and Countervailing Duty Matters 1
  • Chapter   VII Sanitary and Phytosanitary Measures 1
  • Article   53 Objectives 1
  • Article   54 Scope and Coverage 1
  • Article   55 Competent Authorities 1
  • Article   56 General Provisions 1
  • Article   57 Transparency 1
  • Article   58 Committee on Sanitary and Phytosanitary Matters 1
  • Article   59 Definitions 1
  • Chapter   VIII Technical Barriers to Trade 1
  • Article   60 Objectives 1
  • Article   61 Scope and Coverage 1
  • Article   62 Affirmation of Agreement on Technical Barriers to Trade 1
  • Article   63 International Standards 1
  • Article   64 Trade Facilitation 1
  • Article   65 Equivalency of Technical Regulations 1
  • Article   66 Conformity Assessment 1
  • Article   67 Transparency 1
  • Article   68 Technical Cooperation 1
  • Article   69 Committee on Technical Barriers to Trade 2
  • Article   70 Information Exchange 2
  • Article   71 Definitions 2
  • Chapter   IX Transparency 2
  • Article   72 Contact Points 2
  • Article   73 Publication 2
  • Article   74 Notification and Provision of Information 2
  • Article   75 Administrative Proceedings 2
  • Article   76 Review and Appeal 2
  • Article   77 Relation with other Chapters 2
  • Article   78 Definitions 2
  • Chapter   X Dispute Settlement 2
  • Article   79 Cooperation 2
  • Article   80 Scope of Application 2
  • Article   81 Choice of Forum 2
  • Article   82 Consultations 2
  • Article   83 Commission - Good Offices, Conciliation, and Mediation 2
  • Article   84 Request for an Arbitral Panel 2
  • Article   85 Composition of an Arbitral Panel 2
  • Article   86 Functions of Arbitral Panel 2
  • Article   87 Rules of Procedure of an Arbitral Panel 2
  • Article   88 Suspension or Termination of Proceedings 2
  • Article   89 Experts and Technical Advice 2
  • Article   90 Initial Report 2
  • Article   91 Final Report 2
  • Article   92 Implementation of Final Report 2
  • Article   93 Non-implementation - Suspension of Benefits 2
  • Article   94 Compliance Review 2
  • Article   95 Private Rights 2
  • Chapter   XI Administration 2
  • Article   96 Trade and Economic Mixed Commission 2
  • Article   97 The Free Trade Commission 2
  • Article   98 Administration of Dispute Settlement Proceedings 2
  • Chapter   XII Exceptions 2
  • Article   99 General Exceptions 2
  • Article   100 Essential Security 2
  • Article   101 Taxation 2
  • Article   102 Measures to Safeguard the Balance of Payments 2
  • Article   103 Disclosure of Information 2
  • Section   CHAPTER XIII Cooperation 2
  • Article   104 General Objectives 2
  • Article   105 Economic Cooperation 2
  • Article   106 Research, Science and Technology 2
  • Article   107 Education 2
  • Article   108 Labor, Social Security and Environmental Cooperation 2
  • Article   109 Small and Medium-sized Enterprises 2
  • Article   110 Cultural Cooperation 2
  • Article   111 Intellectual Property Rights 2
  • Article   112 Promoting Investment 2
  • Article   113 Mining and Industrial Cooperation 2
  • Article   114 Mechanisms for Cooperation 2
  • Article   115 Dispute Settlement 2
  • Chapter   XIV Final Provisions 2
  • Article   116 Annexes and Footnotes 2
  • Article   117 Amendments 2
  • Article   118 Amendment of the Wto Agreement 2
  • Article   119 Entry Into Force and Termination 2
  • Article   120 Future Work Program 2
  • Article   121 Authentic Texts 2