2. The Parties recall the obligations deriving from membership of the ILO to respect, promote and realise the principles concerning the fundamental rights as reflected in the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022, namely:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labour;
(c) the effective abolition of child labour; including a prohibition on the worst forms of child labour;
(d) the elimination of discrimination in respect of employment and occupation; and
(e) a safe and healthy working environment.
3. Each Party commits to adopt and maintain such rights in its domestic laws, regulations and policies.
4. The Parties recall the obligations deriving from membership of the ILO to effectively implement the ILO Conventions which they have ratified and to make continued and sustained efforts towards ratifying the fundamental ILO Conventions and related protocols, as well as the other Conventions that are classified as “up-to-date” by the ILO.
5. The Parties recognise the importance of the strategic objectives of the ILO Decent Work Agenda, as reflected in the Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022 (ILO Declaration on Social Justice for a Fair Globalization).
6. The Parties commit to:
(a) develop and enhance measures for social protection and decent working conditions for all, with respect to social security, occupational safety and health, wages and earnings, hours of work and other conditions of work;
(b) promote social dialogue and tripartism; and
(c) build and maintain a well-functioning labour inspection system.
7. The Parties reaffirm, as set out in the ILO Declaration on Social Justice for a Fair Globalization, that the violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage and that labour standards shall not be used for protectionist trade purposes.
Article 138. Business and Human Rights
1. The Parties recognise that incorporating a business and human rights approach in trade aims at ensuring coherence and synergy between human rights and trade agreements.
2. The Parties recall the international policy framework regarding business and human rights and their obligations deriving from the international human rights instruments to which they are a party.
3. The Parties shall promote the implementation of the UN Guiding Principles on Business and Human Rights.
Article 139. Labour Market Issues
1. Acknowledging the significant transformations in the world of work driven by technological innovations, demographic shifts, environmental and climate change, and globalisation, the Parties shall direct their efforts on further developing a human-centered approach to the future of work, as reflected in the ILO Centenary Declaration for the Future of Work of 2019, while recognizing the strong, complex and crucial links between social, trade, financial, economic and environmental policies.
2. The Parties may, as appropriate, exchange information, experiences and good practice on related issues of mutual interest.
Section IV. INCLUSIVE ECONOMIC DEVELOPMENT AND EQUAL OPPORTUNITIES FOR ALL
Article 140. General Provisions
1. The Parties acknowledge the importance of incorporating gender equality and non-discrimination perspectives in the promotion of inclusive economic development in order to achieve sustainable economic growth, with income opportunities and prospects for all.
2. The Parties recognise that women’s participation in international trade can contribute to advancing their economic empowerment and economic independence. Furthermore, they acknowledge that women’s access to and ownership of economic resources contribute to sustainable and inclusive economic growth, prosperity and competitiveness.
3. The Parties commit to:
(a) promote policies that aim to ensure an inclusive labour market, equal rights and opportunities for all, and address systemic barriers and discrimination of any kind; and
(b) work towards the elimination of gender wage gaps in their respective economies.
Article 141. International Commitments
The Parties commit to effectively implement the international agreements pertaining to gender equality and non-discrimination, including women’s rights, to which they are party.
Section V. INSTITUTIONAL AND DISPUTE SETTLEMENT PROVISIONS
Article 142. Sub-Committee on Trade and Sustainable Development
1. The Parties shall establish a Sub-Committee on trade and sustainable development composed of senior government representatives or their designees. Each Party shall ensure that its representatives have the appropriate expertise concerning the issues to be discussed, such as experts from institutions responsible for trade, labour, environment and gender issues.
2. The Sub-Committee on trade and sustainable development shall convene directly before or after the meetings of the Joint Committee unless the Parties decide otherwise. Meetings may be conducted in person or by any technological means available to the Parties.
3. The Sub-Committee on trade and sustainable development shall consider conducting meetings in consecutive sessions focused on thematic sections of this Chapter, as well as cross-cutting issues related to trade and sustainable development.
4. The Sub-Committee on trade and sustainable development may consider any matter arising under this Chapter.
5. The Sub-Committee on trade and sustainable development shall:
(a) oversee the implementation of this Chapter;
(b) oversee and assess the cooperation activities of this Chapter, including exchange of information and experience on areas of mutual interest;
(c) serve as a forum for dialogue on matters related to this Chapter;
(d) make recommendations and report to the Joint Committee regarding the implementation, and where applicable, the review of this Chapter; and
(e) carry out the tasks referred to in Article 145 (Consultations) and Article 147 (Review), as well as any other functions as the Parties may agree.
6. The Sub-Committee on trade and sustainable development may consult or seek the advice of relevant stakeholders or experts over matters relating to the implementation of this Chapter.
7. The Sub-Committee on trade and sustainable development shall act by consensus and publish a report on its meetings.
Article 143. Contact Points
Each Party shall designate a contact point for the purposes of facilitating communication and coordination between the Parties on any matter relating to the implementation of this Chapter, including possible cooperative activities. The Parties shall exchange the contact details of their designated contact points.2
2 In the case of Chile, the contact point shall be in its Undersecretariat of International Economic Relations of the Ministry of Foreign Affairs or its successor.
Article 144. Implementation and Dispute Resolution
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter. Should any matter arise under this Chapter, the Parties concerned shall make every attempt to reach a mutually satisfactory resolution of the matter, inter alia through dialogue, exchange of information or, if appropriate, cooperation.
2. For any matter arising under this Chapter, the Parties shall only have recourse to the rules and procedures provided therein. The Parties concerned may nevertheless, if they so agree, have access to good offices, conciliation and mediation procedures. Such procedures may begin and be terminated at any time and shall be confidential and without prejudice to the rights of the Parties concerned in any other procedures provided for in this Chapter.
3. If the Parties concerned so agree, good offices, conciliation and mediation procedures may continue while other proceedings referred to in Articles 145 (Consultations) and 146 (Panel of experts) are in progress.
Article 145. Consultations
1. A Party (the requesting Party) may request bilateral expert consultations with another Party (the responding Party) regarding any matter arising under this Chapter by delivering a written request to the responding Party’s contact point referred to in Article 143 (Contact points). The request shall set out the reasons for requesting consultations, including information that is specific and sufficient, and identify the provisions of this Chapter considered to be applicable, to enable the responding Party to respond. The requesting Party shall inform the other Parties, through the contact points referred to in Article 143 (Contact points), that a request for bilateral expert consultations has been submitted.
2. Unless otherwise agreed by the requesting Party and the responding Party (Consulting Parties), bilateral expert consultations shall begin no later than 30 days from the receipt of the request for consultations. The Consulting Parties shall promptly inform the other Parties of any mutually agreed resolution of the matter.
3. If the Consulting Parties do not reach a mutually agreed solution through bilateral expert consultations in accordance with paragraph 2, within 90 days from the receipt of the request for such consultations, a Consulting Party may request in writing consultations in the Sub-Committee on trade and sustainable development.
4. The Consulting Parties shall enter into consultations in the Sub-Committee on on trade and sustainable development promptly, and no later than 30 days after the date of receipt pursuant to paragraph 3 by the responding Party of the request. For the purposes of this paragraph, the Sub-Committee on on trade and sustainable development shall be composed only by the Consulting Parties.
5. The Consulting Parties may agree to seek advice from any expert or body they deem appropriate to assist them in the consultations.
6. Consultations may be held in person or by any other means of communication agreed by the Consulting Parties. If consultations are held in person, they shall be held in the Responding Party, unless the consulting Parties agree otherwise.
7. The Consulting Parties shall promptly inform the other Parties of any mutually agreed resolution of the matter. Any solution or decision reached by the Consulting Parties shall be made publicly available, unless they agree otherwise.
8. Consultations shall be deemed to be concluded no later than 120 days after the date of receipt of the request for bilateral consultations unless the Consulting Parties agree otherwise.
Article 146. Panel of Experts
1. If the Consulting Parties fail to reach a mutually satisfactory resolution of a matter arising under this Chapter through consultations under Article 145 (Consultations), within the time period set out in paragraph 8 of that Article, a consulting Party may request the establishment of a panel of experts. Article 167 (Establishment of arbitration panel), 168 (Arbitration panel), 169 (Procedures of the arbitration panel) and 171 (Termination of arbitration panel proceedings) of Chapter X (Dispute Settlement) and Annex XVII (Model Rules of Procedure for the Conduct of Arbitration Panels) shall apply mutatis mutandis, except as otherwise provided for in this Article.
2. The panellists shall have relevant expertise in relation to the matter referred to in paragraph 1. They shall be independent, serve in their individual capacities and shall not take instructions from any organisation or government with regard to issues related to the disagreement, or be affiliated with the government of a Party.
3. If the matter is related to multilateral instruments referred to in this Chapter, the panel of experts should seek information from the ILO or relevant bodies established under those instruments, including any pertinent available interpretative guidance, findings or decisions adopted by the ILO or those bodies. Any information obtained shall be submitted to the parties concerned for their comments.
4. The panel of experts shall submit an initial report containing its findings and recommendations to the parties concerned within 100 days from the date of establishment of the panel of experts. A party concerned may submit written comments to the panel of experts on its initial report within 25 days from the date of receipt of the report. After considering any such written comments, the panel of experts may modify the initial report and make any further examination it considers appropriate. The panel of experts shall present to the parties concerned a final report within 60 days from the date of receipt of the initial report. The Parties shall publish, or otherwise make publicly available, the final report.
5. The parties concerned shall discuss appropriate measures to implement the final report of the panel of experts. Such measures shall be communicated to the other Parties, through their contact points, within 90 days from the date of issuance of the final report and shall be monitored by the Joint Committee.
6. Any time period for the purposes of this Article may be modified by mutual agreement of the parties concerned.
7. When a panel of experts considers that it cannot comply with a timeframe imposed on it for the purposes of this Article, it shall, through the contact points, inform the parties concerned in writing stating the reasons of further delay and the date on which the panel of experts plans to deliver its report and provide an estimate of the additional time required. Any additional time should not exceed 60 days.
8. The costs of the panel of experts shall be borne by the parties concerned in equal shares. Each party concerned shall bear its own legal and other costs incurred in relation to the panel of experts. The panel of experts may decide that the costs be distributed differently taking into account the particular circumstances of the case.
9. Where a procedural question arises, the panel of experts may, after consultation with the parties concerned, adopt an appropriate procedure.
Article 147. Review
The Parties shall assess in the Sub-Committee on trade and sustainable development the progress achieved in pursuing the objectives set out in this Chapter and consider relevant international developments in order to identify areas where further actions could promote these objectives.
Chapter VI. Competition Policy
Article 148. Objectives
1. The Parties recognise that anti-competitive business conduct may frustrate the benefits arising from this Agreement.
2. The Parties undertake to apply their competition laws in a manner consistent with this Chapter so as to avoid that the benefits of the liberalisation process in goods and services as provided by this Agreement may be diminished or cancelled out by anti-competitive business conduct. (10) To facilitate this, the Parties agree to co-operate and coordinate under the provisions of this Chapter. This co-operation includes notification, consultation, and exchange of information.
3. For the purposes of this Agreement, "anti-competitive business conduct" includes, but is not limited to, anti-competitive agreements, concerted practices or arrangements by competitors, the abuse of single or joint dominant positions in a market and mergers with substantial anti-competitive effects. These practices refer to goods and services and may be carried out by private and public enterprises.
4. The Parties recognise the importance of principles of competition that are accepted in relevant multilateral fora of which the Parties are members or observers, including non-discrimination, due process, and transparency.
Article 149. Notifications
1. Each Party, through its designated authority, shall notify the other Parties of an enforcement activity regarding anti-competitive business conduct relating to goods and services if it is liable to substantially affect another Party's important interests, or if the anti-competitive business conduct is liable to have a direct and substantial effect in the territory of that other Party or is taking place principally in the territory of that other Party.
2. Provided that this is not contrary to the Parties' competition laws and does not affect any investigation being carried out, notification shall take place at an early stage of the procedure.
3. The notifications provided for in paragraph 1 should be detailed enough to permit an evaluation in the light of the interests of the other Parties.
Article 150. Co-ordination of Enforcement Activities
A Party, through its designated authority, may notify another Party of its willingness to co-ordinate enforcement activities with respect to a specific case. This co-ordination shall not prevent the Parties from taking autonomous decisions.
Article 151. Consultations
1. Each Party shall, in accordance with its laws, take into consideration the important interests of the other Parties in the course of its enforcement activities on anticompetitive business conduct relating to goods and services. If a Party considers that an investigation or proceeding being conducted by another Party may adversely affect such Party's important interests it may transmit its views on the matter to that other Party through its designated authority. Without prejudice to the continuation of any action under its competition laws and to its full freedom of ultimate decision, the Party so addressed should give full and sympathetic consideration to the views expressed by the requesting Party.
2. If a Party considers that an anti-competitive business conduct carried out within the territory of another Party may have an adverse effect on its interests, the first Party may, through its designated authority, request that that other Party initiates appropriate enforcement activities. The request shall be as specific as possible about the nature of the anti-competitive business conduct and its effect on the interest of the requesting Party, and shall include an offer of such further information and other assistance as the requesting Party is able to provide. The requested Party shall carefully consider whether to initiate enforcement activities, or to expand ongoing enforcement activities, with respect to the anti-competitive business conduct identified in the request.
3. Regarding the issues addressed in paragraphs 1 and 2 each Party undertakes to exchange information regarding sanctions and remedies applied and to provide the grounds on which those actions were taken, when requested by another Party.
4. A Party may request consultations within the Joint Committee regarding the issues addressed in paragraphs 1 and 2 as well as any other matter covered by this Chapter. Such a request shall indicate the reasons for the request and whether any procedural time limit or other constraints require that consultations be expedited.
Article 152. Exchange of Information and Confidentiality
1. With a view to facilitating the effective application of their competition laws in order to eliminate the negative effects of anti-competitive business conduct relating to goods and services, the Parties are encouraged to exchange information.
2. All exchange of information shall be subject to the rules and standards of confidentiality applicable in the territory of each Party. No Party shall be required to provide information when this is contrary to its laws regarding disclosure of information. Each Party shall maintain the confidentiality of any information provided to it according to the limitations that the submitting Party requests for the use of such information. Where the laws of a Party so provide, confidential information may be provided to their respective courts of justice.
Article 153. Public Enterprises and Enterprises Entrusted with Special or Exclusive Rights, Including Designated Monopolies
1. With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Parties shall ensure that no measure is adopted or maintained that distorts trade in goods or services between the Parties to an extent contrary to the Parties' interests and that such enterprises shall be subject to the rules of competition insofar as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them.
2. The Parties confirm their rights and obligations under Article XVII of the GATT 1994 and Article VIII of the GATS with regard to enterprises referred to in paragraph 1.
Article 154. Dispute Settlement
No Party may have recourse to dispute settlement under this Agreement for any matter arising under this Chapter.
Article 155. Designated Authorities
For the purpose of applying Articles 149, 150 and 151, each Party shall designate its competition authority or any other public entity and communicate its decision to the other Parties at the first meeting of the Joint Committee but in no case later than 60 days after the entry into force of the Agreement.
Article 156. Definitions
For the purpose of this Chapter:
(a) "competition laws" means:
(i) for Chile, Decreto Ley N° 211 of 1973 and Ley N° 19.610 of 1999 and their implementing regulations or amendments as well as other laws dealing with competition matters;
(ii) for the Republic of Iceland, Competition Law No. 8/1993 as amended by Law No. 24/1994, 83/1997, 82/1998 and 107/2000 as well as other laws dealing with competition matters;
(iii) for the Principality of Liechtenstein, any competition rules that Liechtenstein recognises or undertakes to apply within its territory, including those provided for in other international agreements, such as the Agreement on the European Economic Area;
(iv) for the Kingdom of Norway, Act No. 65 of 11 June 1993 relating to Competition in Commercial Activity as well as other laws dealing with competition matters;
(v) for the Swiss Confederation, the Federal Act on Cartels and Other Restraints of Competition of 6 October 1995 and the Order on the Control of Business Concentration of 17 June 1996, and any regulation provided for by these acts as well as other laws dealing with competition matters, and any changes that the above mentioned legislation may undergo after the conclusion of this Agreement;
(b) "enforcement activity" includes any application of competition laws by way of investigation or proceeding conducted by a Party, which may result in the imposition of penalties or remedies.
Chapter VII. Subsidies
Article 157. Subsidies/state Aid
1. The rights and obligations of the Parties in respect of subsidies related to goods shall be governed by Article XVI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures.
2. The rights and obligations of the Parties in respect of subsidies related to services shall be governed by the GATS.
3. Each Party may request information on individual cases of state aid believed to affect trade between the Parties. The requested Party will make its best efforts to provide such information.
Chapter VIII. Transparency
Article 158. Publication
1. The Parties shall publish, or otherwise make publicly available, their laws, regulations, procedures and administrative rulings of general application as well as the international agreements, that may affect the operation of this Agreement.
2. The Parties shall provide, upon request, information on matters referred to in paragraph 1.
Article 159. Contact Points and Exchange of Information
1. In order to facilitate communication between the Parties on any trade matter covered by this Agreement, each Party shall designate a contact point. On the request of any Party, the contact point of the other Parties shall indicate the office or official responsible for the matter and provide the required support to facilitate communication with the requesting Party.
2. On the request of a Party, each Party shall provide information and reply to any question from the other Parties relating to an actual measure that may affect the operation of this Agreement. The Parties shall make information on proposed measures available to the extent possible under their domestic laws and regulations.
3. The information referred to under this Article shall be considered to have been provided when the information has been made available by appropriate notification to the WTO or when the information has been made available on the official, publicly and fee-free accessible website of the Party concerned.
Article 160. Cooperation on Increased Transparency
The Parties agree to cooperate in bilateral and multilateral fora on ways to increase transparency in trade matters.
Chapter IX. Administration of the Agreement
Article 161. The Joint Committee
1. The Parties hereby establish the EFTA-Chile Joint Committee, comprising Ministers of each Party, or senior officials delegated by them for this purpose.
2. The Joint Committee shall:
(a) supervise the implementation of this Agreement and evaluate the results obtained in its application;
(b) oversee the further elaboration of this Agreement;
(c) endeavour to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) supervise the work of the sub-committees and working groups established or created under this Agreement; and
(e) carry out any other function assigned to it under this Agreement.
3. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks. The Joint Committee may seek the advice of non-governmental persons and groups.
4. The Joint Committee shall establish its rules of procedure. (11) It may take decisions as provided for in this Agreement. On other matters the Joint Committee may make recommendations. The Joint Committee shall take decisions and make recommendations by consensus.
5. Subject to the provisions set out in Annex XV, the Joint Committee may amend the Annexes and the Appendices to this Agreement.
6. The Joint Committee shall meet whenever necessary but normally every two years. The regular meetings of the Joint Committee shall alternate between Chile and an EFTA State.
7. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise.
Article 162. The Secretariat
1. The Parties hereby establish a Secretariat of this Agreement, comprising the competent organs referred to in Annex XVI.
2. All communications to or by a Party shall be sent through the respective competent organs unless otherwise provided for in this Agreement.
Chapter X. Dispute Settlement
Article 163. Scope
1. This Chapter shall apply with respect to the avoidance or the settlement of all disputes arising from this Agreement between one or several EFTA States and Chile.
2. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through co-operation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
3. This Chapter shall not apply to Articles 12,14(1), 15(1), 17(3), 18(1), 28(1) and 157(1) and (2).
Article 164. Choice of Forum
1. Disputes on the same matter arising under both this Agreement and the WTO Agreement, or any agreement negotiated thereunder, to which the Parties are party, may be settled in either forum at the discretion of the complaining Party. The forum thus selected shall be used to the exclusion of the other.
2. Once dispute settlement procedures have been initiated under this Agreement pursuant to Article 167 or dispute settlement proceedings have been initiated under the WTO Agreement, the forum selected shall be used to the exclusion of the other.