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Chile - EFTA Updated FTA (2024)
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Agreement on the European Economic Area of 2 May 1992 (EEA Agreement)

Succinct description of the measure:

Treatment accorded to subsidiaries of third-country companies formed in accordance with the law of an EEA Member State and having registered office, central administration or principal place of business within an EEA Member State is not extended to branches or agencies established in an EEA Member State by a third-country company.

Treatment less favourable may be accorded to subsidiaries of third countries having only their registered office in the territory of an EEA Member State unless they show that they possess an effective and continuous link with the economy of one of the EEA Member States.

Sector: All sectors

Subsector:

Level of Government: National and Sub-national

Legal source or authority of the measure:

Grundverkehrsgesetz vom 9. Dezember 1992 (Law on the acquisition of real estate of 9 December 1992), LR 214.11 

Succinct description of the measure:

All acquisitions of real estate are subject to authorization. Such authorization is granted only if an actual and proven requirement for living or business purposes is given and a certain period of residence has been completed. Non-residents are excluded from the acquisition of real estate.

Sector: Power and Energy sector

Sub-sector: -

Level of Government: National

Legal source or authority of the measure:

Not Applicable

Succinct description of the measure:

All activities in the power and energy sector shall be treated as services under this Agreement.

Appendix 4. Reservations by Norway

Sector: All sectors

Sub-sector: -

Level of Government: National

Legal source or authority of the measure:

Companies Act of 13 June 1997 No 44 (aksjeloven) and Joint Stock Public Companies Act of 13 June 1997, No 45 (allmennaksjeselskapsloven)

Succinct description of the measure:

The general manager in a joint stock company and at least half of the members of the board of directors and of the corporate assembly must be residents of Norway. The residency criteria do not apply to nationals of an EEA Member State who are permanent residents of one of these States. The Ministry of Trade and Industry may grant exemptions from this provision.

Sector: Power and Energy sector

Repair of Transport Equipment sector

Sub-sector: -

Level of Government: National and Sub-national

Legal source or authority of the measure:

Not Applicable

Succinct description of the measure:

All activities in the power and energy sector as well as in the repair of transport equipment sector shall be treated as services under this Agreement.

Sector: Real estate

Sub-sector: Secondary residences

Level of Government: National

Legal source or authority of the measure:

Concessions Act of 31 May 1974, No. 19

Succinct description of the measure:

Acquisition or leasing of secondary residences by non-residents is subject to a concession.

Sector: Fishing and fish processing

Subsector: -

Level of Government:

Legal source or authority of the measure:

Regulation of Participation in Fishing Act of 16 June 1972, No 57

Economic Zone Act of 17 December 1976, No 91

The Fishing Limit Act of 17 June 1966, No 19

Succinct description of the measure:

A concession to acquire a fishing vessel or share in a company which owns such vessels can only be given to a Norwegian citizen or a body that can be defined as a Norwegian citizen. A company is regarded as having equal rights with a Norwegian citizen when its main office is situated in Norway and the majority of the Board, including the Chair of the Board, are Norwegian citizens and have stayed in the country the last two years. Norwegian citizens also have to own a minimum of 60% of the shares and have to be authorised to vote for at least 60% of the votes.

Ownership to the fishing fleet shall be reserved for professional fishermen. To obtain the right to own a fishing vessel, one has to have a record of active, professional fishing on a Norwegian fishing boat for at least three of the last five years.

It is prohibited for other persons than Norwegian nationals or companies, as defined above, to process, pack or transship fish, crustaceans and molluscs or parts and products of these inside the fishing limits of the Norwegian Economic Zone. This applies to catches from both Norwegian and foreign vessels. Exceptions are granted under special circumstances.

Appendix 5. Reservations by Switzerland

Sector: All sectors

Sub-sector: -

Level of Government: National

Legal source or authority of the measure:

Federal Act of 30 March 1911 (Code of Obligations) supplementing the Swiss Civil Code (Systematic Collection of Federal Laws and Regulations [RS], No. 220)

Succinct description of the measure:

- The vast majority of companies in Switzerland are organized as corporations (Société anonyme [SA] – Aktiengesellschaft [AG]), featuring a predetermined capital and shareholders’ liability limited to the nominal capital invested. Of the members of the board of directors of a Swiss corporation, the majority must be Swiss citizens residing in Switzerland. Exceptions are possible in the case of holding companies.

- Limited liability companies (Société à responsabilité limité [Sàrl] – Gesellschaft mit beschränkter Haftung [GmbH]) are characterized by a limited capital divided into quotas. In a limited liability company, at least one managing officer must be residing in Switzerland.

- A foreign company may also establish one or several branch offices in Switzerland. At least one representative of a branch office must be residing in Switzerland.

Sector: All sectors

Sub-sector: Real estate

Level of Government: National and sub-national

Legal source or authority of the measure:

Federal Act of 16 December 1983 on the Acquisition of Real Estate by Persons Abroad (RS 211.412.41)

Succinct description of the measure:

Foreign nationals not residing in Switzerland and companies established, or controlled from, abroad are not allowed to invest in the residential property market (except for residential property directly linked to a business presence) and in agricultural real estate. For the acquisition of vacation homes, a cantonal permit is required.

Sector: Energy

Sub-sector: Oil Prospection and Exploitation

Level of Government: Sub-national

Legal source or authority of the measure:

Concordat of 24 September 1955 on Oil Prospecting and Exploitation (RS 931.1)

Succinct description of the measure:

This intercantonal agreement (among 10 cantons) stipulates that oil concessions may be granted only to companies that are at least 75 percent Swiss-owned. Other cantons apply similar restrictions.

Sector: Energy

Sub-sector: Nuclear energy

Level of Government: National

Legal source or authority of the measure:

Federal Act of 23 December 1959 on the Peaceful Uses of Atomic Energy, (RS 732.0); Federal Decree of 8 October 1978 relative to the Atomic Energy Act (RS 732.01)

Succinct description of the measure:

Authorization to construct and operate nuclear facilities is granted only to Swiss citizens domiciled in Switzerland and legal persons that are subject to Swiss law, headquartered in Switzerland and Swiss-owned.

Sector: Energy

Sub-sector: Hydroelectric power

Level of Government: National

Legal source or authority of the measure:

Federal Act of 22 December 1916 on the Uses of Hydroelectric Power, (RS 721.80)

Succinct description of the measure:

When granting concessions, cantons take public interest considerations into account (they may in particular require the concession-holder to have its registered office in the relevant canton).

Sector: Energy

Sub-sector: Pipelines

Level of Government: National

Legal source or authority of the measure:

Federal Act of 4 October 1963 on Pipelines for Liquid or Gaseous Fuels (RS 746.1)

Succinct description of the measure:

For foreign-owned or controlled companies a registered office and management presence in Switzerland is required.

Appendix 6. Reservations by All Parties

Sector: Social services

Subsector:

Level of Government: National

Legal source or authority of the measure:

Any existing or future measure as described below

Succinct description of the measure:

All Parties reserve the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care.

Appendix 7. Reservations by the EFTA States

Sector: All sectors

Sub-sector: -

Level of Government: National and sub-national

Legal source or authority of the measure:

Not applicable

Succinct description of the measure:

Collective copyright or neighbouring rights’ management systems; royalties, levies, grants and funds, designed to preserve and promote linguistic and cultural diversity.

ANNEX XI. CURRENT PAYMENTS AND CAPITAL MOVEMENTS

1. With respect to its obligations under Articles 61 and 62 of the Agreement, Chile reserves the right of the Central Bank of Chile to maintain or adopt measures in conformity with the Constitutional Organic Law of the Central Bank of Chile (“Ley Orgánica Constitucional del Banco Central de Chile, Ley 18.840”) (“Law 18.840”) or other legislation, in order to ensure currency stability and the normal operation of domestic and foreign payments. For this purpose, the Central Bank of Chile is empowered to regulate the supply of money and credit in circulation and international credit and foreign exchange operations. The Central Bank of Chile is empowered as well to issue regulations governing monetary, credit, financial and foreign exchange matters. Such measures include, inter alia, the establishment of restrictions or limitations on current payments and transfers (capital movements) to or from Chile, as well as transactions related to them, such as requiring that deposits, investments, or credits from or to a foreign country, be subject to a reserve requirement (“encaje”). Notwithstanding the above, the reserve requirement that the Central Bank of Chile can apply pursuant to Article 49 No. 2 of Law 18.840 shall not exceed 30 percent of the amount transferred and shall not be imposed for a period which exceeds two years. 

2. When applying measures under this Annex, Chile, as established in its laws and regulations, shall not discriminate between EFTA States and any third country with respect to transactions of the same nature. 

ANNEX XV. REFERRED TO IN ARTICLE 161(5). DECISIONS OF THE JOINT COMMITTEE

1. In the case of Chile, the decisions of the Joint Committee may be implemented through executive agreements (“acuerdos de ejecución”), in accordance with Chilean law. 

2. In the case of the EFTA States, the final acceptance of a decision of the Joint Committee may be subject to the fulfillment of their respective constitutional requirements. 

ANNEX XVI. REFERRED TO IN ARTICLE 162. SECRETARIAT

For the purposes of Article 86 of this Agreement, the competent organs of the Parties are:

(a) for Chile, the General Directorate of International Economic Affairs of the Ministry of Foreign Affairs (Dirección General de Relaciones Económicas Internacionales del Ministerio de Relaciones Exteriores), or its successor,

and

(b) for the EFTA States, the EFTA Secretariat.

ANNEX XVII. REFERRED TO IN ARTICLE 169. MODEL RULES OF PROCEDURE FOR THE CONDUCT OF ARBITRATION PANELS

General provisions

1. In these rules:

“adviser” means a person retained by a Party to advise or assist that Party in connection with the arbitration panel proceeding;

“complaining Party” means any Party that requests the establishment of an arbitration panel under Article 167 of this Agreement;

“arbitration panel” means an arbitration panel established pursuant to Article 168 of this Agreement;

“representative of a Party” means an employee or any person appointed by a government department or agency or of any other government entity of a Party; and

“Party or Parties” means the Party or Parties to the dispute.

2. The Party complained against shall be in charge of the logistical administration of dispute settlement proceedings, in particular the organisation of hearings, unless otherwise agreed.

Notifications

3. Any request, notice, written submissions or other document shall be delivered by either Party or the arbitration panel by delivery against receipt, registered post, courier, facsimile transmission, telex, telegram or any other means of telecommunication that provides a record of the sending thereof.

4. A Party shall provide a copy of each of its written submissions to the other Party and to each of the arbitrators. A copy of the document shall also be provided in electronic format.

5. All notifications shall be made and delivered to Chile and the EFTA State Party.

6. Minor errors of a clerical nature in any request, notice, written submission or other document related to the arbitration panel proceeding may be corrected by delivery of a new document clearly indicating the changes.

7. If the last day for delivery of a document falls on a legal holiday of a Party, the document may be delivered on the next business day.

Commencing the arbitration

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  • Chapter   I Initial Provisions 2
  • Article   1 Establishment of a Free Trade Area 2
  • Article   2 Objectives 2
  • Article   3 Territorial Application 2
  • Article   4 Relation to other International Agreements 2
  • Article   5 Trade and Economic Relations Governed by this Agreement 2
  • Article   6 Regional and Local Governments 2
  • Chapter   II Trade In Goods 2
  • Article   7 Scope and Coverage 2
  • Article   8 Rules of Origin and Administrative Co-operation 2
  • Article   9 Customs Duties 2
  • Article   10 Fees and Formalities 2
  • Article   11 Import and Export Restrictions 2
  • Article   12 Customs Valuation (1) 2
  • Article   13 National Treatment 2
  • Article   14 Sanitary and Phytosanitary Measures 2
  • Article   15 Technical Regulations 2
  • Article   16 Trade Facilitation 2
  • Article   17 Anti-dumping and Countervailing Measures 2
  • Article   18 Global Safeguard Measures 2
  • Article   19 Emergency Action on Imports of Particular Products 2
  • Article   20 State Trading Enterprises 2
  • Article   21 Export Subsidies 2
  • Article   22 General Exceptions 2
  • Article   23 Preference Utilisation 2
  • Article   24 Technical Amendments 2
  • Article   25 Sub-Committee on Trade In Goods 2
  • Chapter   III Trade In Services and Establishment 2
  • Section   I Trade In Services 2
  • Article   26 Coverage 2
  • Article   27 Definitions 2
  • Article   28 Most-favoured Nation Treatment 3
  • Article   29 Market Access 3
  • Article   30 National Treatment 3
  • Article   31 Trade Liberalisation 3
  • Article   32 Domestic Regulation 3
  • Article   33 Recognition 3
  • Article   34 Movement of Natural Persons 3
  • Article   35 Telecommunications Services 3
  • Section   II FINANCIAL SERVICES 3
  • Article   36 Coverage 3
  • Article   37 Definitions 3
  • Article   38 Most-favoured Nation Treatment 3
  • Article   39 Market Access 3
  • Article   40 National Treatment 3
  • Article   41 Self-regulatory Organisations 3
  • Article   42 Payment and Clearing Systems 3
  • Article   43 Schedule of Specific Commitments 3
  • Article   44 Effective and Transparent Regulation 4
  • Article   45 Prudential Measures 4
  • Article   46 Confidential Information 4
  • Article   47 International Standards 4
  • Article   48 Recognition of Prudential Measures 4
  • Article   49 Movement of Natural Persons 4
  • Article   50 Transfers of Information and Data Processing 4
  • Article   51 Sub-Committee on Financial Services 4
  • Article   52 Consultations 4
  • Article   53 Dispute Settlement 4
  • Section   III Establishment 4
  • Article   54 Coverage 4
  • Article   55 Definitions 4
  • Article   56 National Treatment 4
  • Article   57 Reservations 4
  • Article   58 Right to Regulate 4
  • Article   59 Final Provisions 4
  • Section   IV Payments and Capital Movements 4
  • Article   60 Objective and Scope 4
  • Article   61 Current Account 4
  • Article   62 Capital Account 4
  • Article   63 Exceptions and Safeguard Measures 4
  • Article   64 Final Provisions 4
  • Section   V Common Provisions 4
  • Article   65 Relation to other International Agreements 4
  • Article   66 General Exceptions 4
  • Chapter   IV Protection of Intellectual Property 4
  • Article   67 Protection of Intellectual Property 4
  • Article   68 Principles 4
  • Article   69 Intellectual Property and Public Health 4
  • Chapter   V Government Procurement 4
  • Article   70 Scope and Coverage 4
  • Article   71 Definitions 4
  • Article   72 Security and General Exceptions 5
  • Article   73 Non-Discrimination 5
  • Article   74 Use of Electronic Means 5
  • Article   75 Conduct of Procurement 5
  • Article   76 Anticorruption Measures 5
  • Article   77 Rules of Origin 5
  • Article   78 Offsets 5
  • Article   79 Information on the Procurement System 5
  • Article   80 Notices 5
  • Article   81 Conditions for Participation 5
  • Article   82 Registration Systems and Qualification Procedures 5
  • Article   83 Multi-use Lists 5
  • Article   84 Tender Documentation 5
  • Article   85 Technical Specifications 5
  • Article   86 Modifications of Tender Documentation and Technical Specifications 5
  • Article   87 Time Periods 5
  • Article   88 Limited Tendering 5
  • Article   89 Electronic Auctions 5
  • Article   90 Negotiations 5
  • Article   91 Treatment of Tenders 5
  • Article   92 Awarding of Contracts 5
  • Article   93 Transparency of Procurement Information 5
  • Article   94 Disclosure of Information 5
  • Article   95 Domestic Review Procedures for Supplier Challenges 6
  • Article   96 Modifications and Rectifications to Coverage 6
  • Article   97 Facilitation of Participation by Small and Medium-sized Enterprises 6
  • Article   98 Cooperation 6
  • Article   99 Contact Points on Government Procurement 6
  • Article   100 Further Negotiations 6
  • Chapter   Vbis SMALL AND MEDIUM-SIZED ENTERPRISES 6
  • Article   101 General Principles 6
  • Article   102 Information Exchange and Transparency 6
  • Article   103 Activities and Cooperation 6
  • Article   104 Non-application of Dispute Settlement 6
  • Chapter   Vter DIGITAL TRADE 6
  • Article   105 Definitions 6
  • Article   106 Scope 6
  • Article   107 General Principles 6
  • Article   108 Right to Regulate 6
  • Article   109 Customs Duties 6
  • Article   110 Electronic Authentication, Trust Services and Contracts by Electronic Means 6
  • Article   111 Paperless Trade Administration 6
  • Article   112 Open Internet Access 6
  • Article   113 Online Consumer Trust 7
  • Article   114 Unsolicited Commercial Electronic Messages 7
  • Article   115 Cross-border Data Flows and Localisation of Computing Facilities 7
  • Article   116 Electronic Payments and Invoicing 7
  • Article   117 Protection of Personal Data and Privacy 7
  • Article   118 Transfer of or Access to Source Code 7
  • Article   119 Cooperation on Electronic Commerce 7
  • Article   120 General Exceptions 7
  • Article   121 Security Exceptions 7
  • Article   122 Review 7
  • Chapter   Vquater TRADE AND SUSTAINABLE DEVELOPMENT 7
  • Section   I GENERAL PROVISIONS 7
  • Article   123 Context and Objectives 7
  • Article   124 Right to Regulate and Levels of Protection 7
  • Article   125 Upholding Levels of Protection 7
  • Article   126 Responsible Business Conduct 7
  • Article   127 Procedural Guarantees 7
  • Article   128 Public Participation, Awareness and Submissions 7
  • Article   129 Cooperation 7
  • Article   130 Cooperation Framework 7
  • Section   II ENVIRONMENT AND TRADE 7
  • Article   131 Multilateral Environmental Agreements and Governance 7
  • Article   132 Sustainable Forest Management and Associated Trade 7
  • Article   133 Sustainable Agriculture, Food Systems and Associated Trade 7
  • Article   134 Trade and Climate Change 7
  • Article   135 Trade and Biological Diversity 7
  • Article   136 Trade and Sustainable Management of Fisheries and Aquaculture 7
  • Section   III LABOUR AND TRADE 7
  • Article   137 Labour Rights 7
  • Article   138 Business and Human Rights 8
  • Article   139 Labour Market Issues 8
  • Section   IV INCLUSIVE ECONOMIC DEVELOPMENT AND EQUAL OPPORTUNITIES FOR ALL 8
  • Article   140 General Provisions 8
  • Article   141 International Commitments 8
  • Section   V INSTITUTIONAL AND DISPUTE SETTLEMENT PROVISIONS 8
  • Article   142 Sub-Committee on Trade and Sustainable Development 8
  • Article   143 Contact Points 8
  • Article   144 Implementation and Dispute Resolution 8
  • Article   145 Consultations 8
  • Article   146 Panel of Experts 8
  • Article   147 Review 8
  • Chapter   VI Competition Policy 8
  • Article   148 Objectives 8
  • Article   149 Notifications 8
  • Article   150 Co-ordination of Enforcement Activities 8
  • Article   151 Consultations 8
  • Article   152 Exchange of Information and Confidentiality 8
  • Article   153 Public Enterprises and Enterprises Entrusted with Special or Exclusive Rights, Including Designated Monopolies 8
  • Article   154 Dispute Settlement 8
  • Article   155 Designated Authorities 8
  • Article   156 Definitions 8
  • Chapter   VII Subsidies 8
  • Article   157 Subsidies/state Aid 8
  • Chapter   VIII Transparency 8
  • Article   158 Publication 8
  • Article   159 Contact Points and Exchange of Information 8
  • Article   160 Cooperation on Increased Transparency 8
  • Chapter   IX Administration of the Agreement 8
  • Article   161 The Joint Committee 8
  • Article   162 The Secretariat 8
  • Chapter   X Dispute Settlement 8
  • Article   163 Scope 8
  • Article   164 Choice of Forum 8
  • Article   165 Good Offices, Conciliation or Mediation 9
  • Article   166 Consultations 9
  • Article   167 Establishment of Arbitration Panel 9
  • Article   168 Arbitration Panel 9
  • Article   169 Procedures of the Arbitration Panel 9
  • Article   170 Ruling 9
  • Article   171 Termination of Arbitration Panel Proceedings 9
  • Article   172 Implementation of Arbitration Panel Rulings 9
  • Article   173 Other Provisions 9
  • Chapter   XI General Exceptions 9
  • Article   174 Balance of Payments Difficulties 9
  • Article   175 National Security Clause 9
  • Article   176 Taxation 9
  • Chapter   XII Final Provisions 9
  • Article   177 Definitions 9
  • Article   178 Annexes and Appendices 9
  • Article   179 Amendments 9
  • Article   180 Additional Parties 9
  • Article   181 Withdrawal and Termination 9
  • Article   182 Entry Into Force 9
  • Article   183 Depositary 9
  • Annex X  REFERRED TO IN ARTICLE 57. RESERVATIONS 9
  • Appendix 1  Reservations by Chile 9
  • Appendix 2  Reservations by Iceland 10
  • Appendix 3  Reservations by Liechtenstein 10
  • Appendix 4  Reservations by Norway 11
  • Appendix 5  Reservations by Switzerland 11
  • Appendix 6  Reservations by All Parties 11
  • Appendix 7  Reservations by the EFTA States 11
  • ANNEX XI  CURRENT PAYMENTS AND CAPITAL MOVEMENTS 11
  • ANNEX XV  REFERRED TO IN ARTICLE 161(5). DECISIONS OF THE JOINT COMMITTEE 11
  • ANNEX XVI  REFERRED TO IN ARTICLE 162. SECRETARIAT 11
  • ANNEX XVII  REFERRED TO IN ARTICLE 169. MODEL RULES OF PROCEDURE FOR THE CONDUCT OF ARBITRATION PANELS 11
    • Name
    Chile - EFTA Updated FTA (2024)
    PDF Link
    Chile - EFTA Updated FTA (2024)
    Signed date
    24 / Jun / 2024
    Treaty type
    Other International Investment Agreements
    Origin language
    en
    Party ISO codes
    CHL,EFTA
    Relationship with other documents
    Type Agreements Date of signature Date of entry in force
    IT_OVERLAP Chile - Switzerland BIT (2025) 03 / Jun / 2025
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    PDF
    Original PDF
    Original PDF