Title
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF CHILE AND THE REPUBLIC OF TURKEY
Preamble
PREAMBLE The Republic of Chile and the Republic of Turkey (hereinafter referred to as "the Parties" or "Chile" or "Turkey" where appropriate);
DESIROUS to develop and strengthen friendly relations, especially in the fields of economic co-operation and trade, with an aim to contribute to the progress of economic co-operation and to promote mutually beneficial bilateral trade;
HAVING regard to the experience gained from the co-operation developed between the Parties as well as between them and their main trading partners;
RESOLVED to lay down for this purpose provisions aimed at the progressive abolition of the obstacles to trade between the Parties in accordance with the provisions of these instruments, in particular those concerning the establishment of free trade areas;
DECLARING their readiness to undertake activities with a view to promoting harmonious development of their trade as well as to expanding and diversifying their mutual co-operation in the fields of joint interest, thus creating a framework and supportive environment based on equality, non discrimination, and a balance of rights and obligations;
RESOLVED to contribute to the strengthening and reinforcement of the multilateral trading system as established through the World Trade Organization (WTO);
DESIROUS to develop their relations in the field of sustainable development and environmental protection and conservation, and to improve working conditions and living standards in their respective countries and protect, enhance and enforce the fundamental worker's rights;
HAVE AGREED as follows:
Body
Title I. Initial Provisions
Article 1. Establishment of a Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as "GATT 1994"), hereby establish a free trade area.
Article 2. Objectives
The objectives of this Agreement are:
a) to increase and enhance the economic cooperation between the Parties and raise the living standards of the people of the two countries;
b) to promote the expansion of trade through the harmonious development of the economic relations between the Parties;
c) to gradually eliminate difficulties and restrictions on trade in goods;
d) to contribute by the removal of barriers to trade, to the harmonious development and expansion of world trade; and
e) to provide fair conditions of competition in trade between the Parties.
Article 3. Relation to other International Agreements
The Parties confirm their rights and obligations under the Marrakesh Agreement establishing the World Trade Organization (hereinafter referred to as "the WTO Agreement") and the other agreements negotiated thereunder to which they are a party, and under any other international agreement to which they are a party.
Article 4. Customs Unions and Free Trade Areas
1. Nothing in this Agreement shall preclude the maintenance or establishment of customs unions, free trade areas or other arrangements between either of the Parties and third countries, insofar as they do not alter the rights and obligations provided for in this Agreement.
2. At the request of a Party, consultations between them shall take place within the Joint Committee concerning agreements establishing or adjusting customs unions or free trade areas and, where required, on other major issues related to the Parties' respective trade policies with third countries.
Article 5. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
a) "days" means calendar days, including weekends and holidays;
b) "measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, practice, decision, administrative action or any other form;
c) "publish" includes publication in written form or on the internet.
Title II. Market Access for Goods
Chapter I. COMMON PROVISIONS
Article 6. National Treatment
Each Party shall accord National Treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes; and to this end Article III of GATT 1994, and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 7. Classification and Valuation of Goods
1. The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature in conformity with the Harmonized Commodity Description and Coding System (hereinafter referred to as "the Harmonized System" or "HS").
2. For the purposes of determining the customs value of goods traded between the Parties, provisions of Part I of the Agreement on Implementation of Article VII of the GATT 1994, as may be amended, shall apply mutatis mutandis.
Article 8. Customs Duty
A customs duty includes any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but does not include any:
a) internal taxes or other internal charges imposed consistently with Article 59;
b) antidumping or countervailing duties applied consistently with Article 34; and
c) fees or other charges imposed consistently with Article 14.
Article 9. Basic Duties
1. For each product, the basic duty to which successive reductions set out in this Agreement are to be applied shall be the Most Favored Nation (MFN) duty that was in force in the Parties on the date of entry into force of this Agreement.
2. If after the entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular, reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the basic duties referred to in paragraph 1 as from that date when such reductions are applied.
3. The Parties shall communicate to each other their respective basic duties.
Article 10. Rules of Origin and Cooperation between the Customs Administrations
1. Annex V to this Agreement lays down the rules of origin and related methods of administrative co-operation.
2. For the purposes of the effective implementation and operation of Annex V, the Parties hereby establish a Sub-Committee on Customs and Rules of Origin. The functions of the Sub-Committee on Customs and Rules of Origin shall be:
a) reviewing the implementation and operation of Annex V;
b) reporting its findings to the Joint Committee;
c) identifying areas, relating to Annex V to be improved for facilitating trade in goods between the Parties; and d) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 54.
3. The Sub-Committee on Customs and Rules of Origin shall meet as may be agreed by the Parties.
4. The Sub-Committee on Customs and Rules of Origin shall be composed by representatives from the competent authorities of the Parties. Other Governmental Authorities may be invited to the Sub-Committee on Customs and Rules of Origin meetings whenever it is deemed necessary.
5. The terms of reference of the Sub-Committee on Customs and Rules of Origin shall be determined in the first meeting of the Joint Committee.
Article 11. Customs Duties of a Fiscal Nature
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 12. Customs Duties on Exports and Charges Having Equivalent Effect
1. Customs duties and charges having equivalent effect on exports shall be abolished between the Parties upon the entry into force of this Agreement.
2. From the date of entry into force of this Agreement, no new customs duties on exports or charges having equivalent effect shall be introduced in trade between the Parties.
Article 13. Import and Export Restrictions
Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994 and its interpretative notes; and to this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 14. Fees and other Charges
Each Party shall ensure, in accordance with Article VIII of the GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charges, applied consistently with Article III paragraph 2 of the GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
Article 15. Re-export and Serious Shortage
1. Where compliance with the provisions of Article 13 leads to:
a) re-export towards a third country against which the exporting Party to this Agreement maintains for the product concerned quantitative export restrictions, export duties or measures or charges having equivalent effect;
b) a serious shortage, or threat thereof, of a product essential to the exporting Party; or
c) a shortage of essential quantities of domestic materials for a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of a governmental stabilization plan; and where the situations referred to above give rise or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in this Article.
2. In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Agreement. Such measures shall not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade, and shall be eliminated when the conditions no longer justify their maintenance. In addition, the measures which may be adopted pursuant to paragraph 1(c) shall not operate to increase the exports of or the protection afforded to the domestic processing industry concerned, and shall not depart from the provisions of this Agreement relating to non-discrimination.
3. Before taking the measures provided for in paragraph 1, or as soon as possible in cases to which paragraph 4 applies, the Party intending to take the measures shall supply the Joint Committee with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties within the Joint Committee may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Joint Committee, the exporting Party may apply measures under this Article on the exportation of the product concerned.
4. Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party intending to take the measures may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.
5. Any measures applied pursuant to this Article shall be immediately notified to the Joint Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their elimination as soon as circumstances permit.
Chapter II. ELIMINATION OF CUSTOMS DUTIES
Section I. INDUSTRIAL PRODUCTS
Article 16. Scope
The provisions of this Section shall apply to products originating in the Parties falling within Chapters 25 to 97 of the Harmonized System; with the exception of the products listed in Annex I of this Agreement.
Article 17. Customs Duties on Imports and Charges Having Equivalent Effect
1. Customs duties on imports into Turkey of goods originating in Chile shall be abolished upon the entry into force of this Agreement.
2. Customs duties on imports into Chile of goods originating in Turkey, other than those listed in Annex II and Annex III shall be abolished upon the entry into force of this Agreement.
3. Customs duties on imports into Chile of goods originating in Turkey, which are listed in Annex II shall be progressively abolished in accordance with the timetable laid down thereof.
4. Customs duties on imports of products which are listed in Annex III shall not be subject to the concessions referred to in this Article.
5. From the date of entry into force of this Agreement no new customs duties on imports or charges having equivalent effect shall be introduced in trade between the Parties.
6. Turkey and Chile shall abolish in trade between themselves any charges having an equivalent effect to customs duties on imports upon the entry into force of this Agreement.
Section II. AGRICULTURAL, PROCESSED AGRICULTURAL AND FISHERY PRODUCTS
Article 18. Scope
1. The provisions of this Section shall apply to basic agricultural, processed agricultural and fishery products (hereinafter referred to as "agricultural products") originating in the territory of each Party.
2. The term "agricultural products" means, for the purposes of this Agreement, the products falling within Chapters 01 to 24 of the Harmonized System and including the products listed in Annex I of this Agreement.
Article 19. Exchange of Concessions
1. The Parties to this Agreement shall mutually allocate concessions set forth in Annex IV in accordance with the provisions of this Section.
2. Taking into account the role of agriculture in their respective economies, the development of trade in agricultural products and the rules of their respective agricultural policies, the Parties shall examine in the Joint Committee the possibilities of granting further concessions to each other in trade in agricultural products. If a decision to improve the conditions of access is agreed, the Parties will evaluate the increase of the current quotas and the reduction or elimination of customs duties.
Article 20. Price Band System
Chile may maintain its price band system as established under its Law No. 18.525 or succeeding system for the products covered by that law, provided it is applied consistent with Chile's rights and obligations under the WTO Agreement and in a manner that does not afford more favorable treatment to imports of any third country, including countries with which Chile has concluded or will conclude in the future an agreement notified under Article XXIV of the GATT 1994.
Title III. Other Trade Related Provisions
Chapter I. SANITARY AND PHYTOSANITARY MEASURES
Article 21. General Provisions
1. The Parties affirm their rights and obligations with respect to each other under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (hereinafter referred to as "the SPS Agreement").
2. The Parties shall not apply their regulations in sanitary and phytosanitary matters as an arbitrary or unjustifiable discrimination or a disguised restriction on trade between them.
Article 22. Objectives
The objectives of this Chapter are:
a) to facilitate bilateral trade in food, plants and animals and products thereof, while protecting human, animal or plant life or health in the territory of each Party;
b) to deepen mutual understanding of each Party's regulations and procedures relating to consultations on and implementation of sanitary and phytosanitary measures;
c) to strengthen cooperation between the Parties' competent authorities that have the responsibility for sanitary and phytosanitary matters; and d) to provide a means to improve communication, cooperation and resolution of sanitary and phytosanitary issues.
Article 23. Sub-committee on Sanitary and Phytosanitary Matters
1. The Parties hereby agree to establish a Sub-Committee on Sanitary and Phytosanitary Matters (hereinafter referred to as "the Sub-Committee on SPS Matters") comprising representatives of each Party who have responsibility for sanitary and phytosanitary matters. The Sub-Committee on SPS Matters shall report to the Joint Committee of its activities.
2. The Sub-Committee on SPS Matters shall provide a forum for:
a) consulting on matters related to the development or application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties;
b) consulting on issues, positions, and agendas for meetings of the Committee on Sanitary and Phytosanitary Measures and the other relevant international organizations referred to in the SPS Agreement;
c) coordinating technical cooperation programs on sanitary and phytosanitary matters;
d) improving bilateral understanding related to specific implementation issues concerning the SPS Agreement;
e) reviewing progress on addressing sanitary and phytosanitary matters that may arise between the Parties' competent authorities with responsibility for such matters; and
f) discussing matters with a view to reach a consensus related to consultation process referred to in sub-paragraph (a).
3. The Sub-Committee on SPS Matters shall perform its work in accordance with the terms of reference that will be established during the first meeting of the Joint Committee.
4. The Sub-Committee on SPS Matters shall meet on the request of either Party to consider any matter arising under this Chapter.
5. The Parties agree to establish contact points for the better implementation of this Chapter.
Chapter II. TECHNICAL REGULATIONS, STANDARDS AND CONFORMITY ASSESSMENT PROCEDURES
Article 24. Objectives
The objectives of this Chapter are to increase and facilitate trade by preventing and eliminating unnecessary obstacles to trade and enhancing bilateral cooperation in accordance with the rights and obligations of the Parties with respect to the WTO Agreement on Technical Barriers to Trade (hereinafter referred to as "the TBT Agreement").
Article 25. Scope and Coverage
1. Except as provided in paragraph 2, this Chapter applies to all standards, technical regulations and conformity assessment procedures, as defined in the TBT Agreement that may, directly or indirectly, affect trade in goods between the Parties.
2. Sanitary and phytosanitary measures and technical specifications prepared by governmental bodies for public procurement purposes are not subject to the provisions of this Chapter.
Article 26. Definitions
For the purpose of this Chapter, the definitions of Annex 1 of the TBT Agreement shall apply. In this respect, the Decision of the WTO Committee on Technical Barriers to Trade on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of that Agreement shall also apply.
Article 27. Basic Rights and Obligations
The Parties confirm their rights and obligations with respect to each other under the TBT Agreement.
Article 28. Trade Facilitation
1. The Parties shall intensify their bilateral cooperation in the fields of standards, technical regulations, and conformity assessment procedures with a view to facilitating trade between them.
2. To this end, the Parties shall seek to identify trade facilitating bilateral initiatives regarding standards, technical regulations, and conformity assessment procedures that are appropriate for particular issues or sectors. Such initiatives may include cooperation on regulatory issues, such as convergence and/or equivalence of technical regulations and standards, alignment with international standards, reliance on a supplier's declaration of conformity and use of accreditation to qualify conformity assessment bodies, as well as cooperation through recognition of the results of the conformity assessment procedures.
Article 29. Transparency
1. The Parties acknowledge the importance of transparency in decision-making, including providing a meaningful opportunity for interested parties to provide comments on proposed technical regulations and conformity assessment procedures. Where a Party publishes a notice under Article 2.9 or 5.6 of the TBT Agreement, it shall:
a) include in the notice a statement describing the objective of the proposed technical regulation or conformity assessment procedure and the rationale for the approach the Party is proposing; and
b) transmit the proposal electronically to the other Party's enquiry point, which has been established pursuant to Article 10 of the TBT Agreement, at the same time as it sends the notification to the WTO. Each Party should allow, when it is possible, at least 60 days after it transmits a proposal under sub-paragraph (b) to the other Party to make comments on the proposal in writing.
2. Where 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 to the other Party electronically through the enquiry point referenced in sub-paragraph 1(b).
3. On request of the other Party, a Party shall provide the other Party information regarding the objective of, and rationale for, a standard, technical regulation, or conformity assessment procedure that the Party has adopted or is proposing to adopt.
Article 30. Technical Cooperation
With a view to fulfill the objectives of this Chapter, the Parties shall, on the request of the other Party and where possible, cooperate towards:
a) exchanging legislation, regulations, rules and other information and periodicals published by the national bodies responsible for technical regulations, standards, conformity assessment, metrology and accreditation;
b) exchanging general information and publications on conformity assessment, certification bodies, including notified bodies, designation and accreditation of conformity assessment bodies;
c) providing technical advise, information and assistance on mutually agreed terms and conditions and exchanging experience to enhance the other Party's system for standards, technical regulations and conformity assessment procedures, and related activities;
d) increasing the information exchange, particularly regarding noncompliance of a product in bilateral trade with relevant technical regulations and conformity assessment procedures of a Party;
e) examining the compatibility and/or equivalence of their respective technical regulations, standards and conformity assessment procedures;
f) giving favorable consideration, on request of the other Party, to any sector specific proposal for further cooperation;
g) promoting and encouraging bilateral cooperation between respective organizations, public and/or private, of the Parties responsible for standardization, testing, certification, accreditation and metrology;
h) increasing their bilateral cooperation in the relevant international organizations and fora dealing with the issues covered by this Chapter; and
i) informing the other Party, as far as possible, about the agreements or programs subscribed at international level in relation to TBT issues.
Article 31. Sub-committee on Standards, Technical Regulations and Conformity Assessment
1. The Parties hereby agree to establish a Sub-Committee on Standards, Technical Regulations and Conformity Assessment (hereinafter referred to as "the Sub-Committee on TBT Matters"). The Sub-Committee on TBT Matters shall report to the Joint Committee of its activities.
2. The Sub-Committee on TBT Matters may address any matter related to the effective functioning of this Chapter. The responsibilities and functions of the Sub-Committee on TBT Matters shall include: