5. Articles 10.3 and 11.3 and 12.4 shall apply to taxation measures to the same extent as covered by the GATS.
6. For the purposes of this Article, taxation measure means any measure relating to direct or indirect taxes, but does not include: (a) a customs duty; or (b) the measures listed in subparagraphs (b) and (c) of the definition of customs duties in Article 2.1.
7. For the purposes of paragraph 3, designated authority means:
(a) In the case of Hong Kong, China, to be designated by the Director-General of Trade and Industry or his authorised representative; and
(b) In the case of Chile, the Director del Servicio de Impuestos Internos, Ministerio de Hacienda, or an authorised representative of the Ministro de Hacienda.
Article 184. Measures to Safeguard the Balance of Payments
1. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may adopt or maintain restrictive measures with regard to trade in goods, trade in services, and establishment under Chapter 10 in accordance with:
(a) GATT 1994 and the WTO Understanding on the Balance-of-PaymentsProvisions of the GeneralAgreement onTariffs and Trade1994; or
(b) Article XII.2 of GATS, including on payments, transfers or capital movements, as applicable.
2. The Parties shall endeavour to avoid the application of the restrictive measures referred to in paragraph 1.
3. Any restrictive measure adopted or maintained under this Article shall be non-discriminatory and of limited duration and shall not go beyond what is necessary to remedy the balance of payments and external financial situation.
4. In determining the incidence of restrictions adopted or maintained under paragraph 1, each Party may give priority to economic sectors which are more essential to its economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector.
5. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall promptly be notified to the other Party and present, as soon as possible, a time schedule for their removal.
6. The Party adopting or maintaining any restrictions under paragraph 1 shall consult promptly with the other Party. Such consultations shall assess the balance of payments situation of the Party concerned and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors as:
(a) The nature and extent of the balance of payments and the external financial difficulties;
(b) The external economic and trading environment of the consulting Party; and
(c) Alternative corrective measures which may be available.
The consultations shall address the compliance of any restrictive measures with paragraphs 3 and 4. All findings of statistical and other facts presented by the International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments shall be accepted and conclusions shall be based on the assessment by the Fund of the balance of payments and external financial situation of the consulting Party.
Article 185. Disclosure of Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information provided in confidence by the other Party pursuant to this Agreement. Such information shall be used only for the purposes specified, and shall not be otherwise disclosed without the specific written permission of the Party providing the information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
2. Nothing in this Agreement shall be construed as requiring a Party to furnish or allow access to information the disclosure of which would impede law enforcement or violate its domestic law or otherwise be contrary to the public interest or which would prejudice the legitimate commercial interests of particular enterprises, public or private, or at the time of the disclosure of the information, would be for the purpose of judicial proceedings of the other Party.
Chapter 19. Final Provisions
Article 191. Annexes and Footnotes
The Annexes and footnotes to this Agreement constitute an integral part of this Agreement.
Article 192. Amendments
1. This Agreement may be amended by the Parties by agreement in writing or by the Commission pursuant to Article 16.1.4(b).
2. All amendments to this Agreement shall enter into force 60 days after the date of the last notification by which the Parties inform each other that the necessary domestic legal procedures have been completed, or on such other date as may be agreed by the Parties.
3. All amendments shall, upon entry into force, constitute an integral part of this Agreement.
Article 193. Amendment of the Wto Agreement
If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended, the Parties may consult each other on whether to amend this Agreement.
Article 194. Succession of Treaties or International Agreements
Subject to Article 19.3, any reference in this Agreement to any other treaty or international agreement shall be made in the same terms to its successor treaty or international agreement to which a Party is party or which is applicable to the Area of a Party.
Article 195. Memorandum of Understanding on Labour Cooperation
The Parties shall enhance their dialogue and cooperation on labour matters through the Memorandum ofUnderstanding onLabourCooperation between Hong Kong, China and Chile concluded by the Parties separately from but alongside this Agreement.
Article 196. Future Work Programmes
1. Upon the entry into force of this Agreement, the Parties will initiate negotiations on investment in accordance with the terms of reference established by the Notes exchanged between them alongside this Agreement.
2. The Parties shall review, 2 years after the entry into force of this Agreement and at the request of either Party, their taxation measures with the purpose of improving the disciplines contained in Article 18.3.
Article 197. Entry Into Force and Termination
1. The entry into force of this Agreement is subject to the completion of the necessary domestic legal procedures by each Party.
2. This Agreement shall enter into force 60 days after the date of the last notification by which the Parties inform each other that the procedures under paragraph 1 have been completed, or on such other date as may be agreed by the Parties.
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.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.
DONE at Vladivostok, Russian Federation, in duplicate, this September 7th 2012, in the English language.
For the Government of the Hong Kong Special Administrative Region of the People's Republic of China.
For the Government of the Republic of Chile
Attachments
MEMORANDUM OF UNDERSTANDING ON LABOUR COOPERATION BETWEEN HONG KONG, CHINA AND CHILE
The Governments of the Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong, China”) and Republic of Chile (“Chile”), hereinafter individually referred to as a “Party” or collectively as the “Parties”:
Desiring to express an approach dealing with labour issues based on dialogue, cooperation and consultation, taking into account the needs, aspirations and unique circumstances of each Party;
Seeking to improve working conditions and protect and enhance the basic workers’ rights in the areas of the Parties, taking into account the different domestic contexts, including development, social, cultural and historical backgrounds;
Acknowledging that the Parties share a similar commitment to improving the levels of labour protection through their domestic laws and regulations, policies and practices, taking into account their domestic context and priorities;
Considering the strategic labour objectives of the International Labour Organization (“ILO”), including those related to employment, labour standards, social protection and social dialogue, which the Parties firmly support; and
Considering the Free Trade Agreement between Hong Kong, China and Chile, done at Vladivostok, Russian Federation, on September 7th , 2012 (“FTA”),
Have agreed as follows:
Article 1
Objectives
The objectives of the Parties under this Memorandum of Understanding (“MOU”) are to:
(a) through dialogue and cooperation between them, strengthen their broader relationship and facilitate the improvement of their capacities to address labour matters;
(b) enhance the well-being of their respective workforces progressively, through the promotion of sound labour policies and practices, and better understanding of each other’s labour system; and
(c) provide a forum to discuss and exchange views on labour issues of interest or concern.
Article 2
Key Commitments
1. The Parties affirm their respective commitments to the principles of the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998).
2. Each Party shall seek to improve its labour laws, regulations, policies. and practices, taking into account the international labour commitments applicable to it and its domestic circumstances.
3. Each Party shall respect the other Party’s right to set, administer and enforce its own labour laws, regulations, policies and priorities, as appropriate.
4. The Parties recognise that it is inappropriate to set or use their labour laws, regulations, policies and practices for trade protectionist purposes.
5. The Parties recognise that it is inappropriate to encourage or gain trade or investment advantage by weakening or failing to enforce or administer their labour laws, regulations, policies and practices in a manner affecting trade between them.
6. Each Party shall promote public awareness of its labour laws and regulations domestically.
Article 3
Cooperation Framework
1. The Parties agree to establish a dialogue on labour matters of mutual interest and may explore opportunities for cooperation. Such dialogue and cooperation shall be subject to the availability of resources, the respective priorities of the Parties and their respective domestic laws and regulations.
2. Taking into account the Parties’ interest and expertise in labour related areas, the Parties may jointly decide specific cooperative activities which may be implemented through a variety of means, such as the exchange of best practices and information, joint projects, studies, visits, workshops and dialogues as the Parties may agree. If the cooperative activities need funding, it shall be decided by the Parties on a case-by-case basis, and according to the respective priorities of the Parties, their domestic laws and regulations and budget available.
3. Each Party may, as appropriate, invite the participation of its stakeholders in identifying potential areas for cooperation and in undertaking cooperative activities.
Article 4
Institutional Arrangements
1. In order to facilitate communication between the Parties for the purposes of this MOU, each Party shall designate a contact point no later than 6 months after the date of its entry into force. Each Party shall notify the other Party promptly of any change of the contact point.
2. The Parties may exchange information and coordinate activities by any means of communication, including internet and videoconference.
3. The Parties may agree to meet in order to discuss and exchange views on matters of mutual interest, consider areas of potential cooperative activities, and address any issue that may arise between them.
4. Each Party may, having regard to its own domestic circumstances, consult its stakeholders over matters relating to the operation of this MOU by whatever means that Party considers appropriate.
Article 5
Consultations
1. The Parties shall endeavour, at all times, to make every effort to settle in good faith any issue concerning the interpretation, implementation or application of this MOU through dialogue, cooperation and consultations.
2. Should any issue arise concerning the interpretation, implementation or application of this MOU, a Party may request consultations with the other Party, through its contact point. Any difference that may arise under or relating to this MOU shall be resolved solely between the Parties in accordance with this Article.
3. The Parties shall complete the consultations as soon as practicable, following the receipt by the requested Party of the request for consultations pursuant to paragraph 2.
Article 6
Final Provisions
1. This MOU is concluded separately from, but alongside, the FTA.
2. This MOU shall enter into force on the same date as that of the FTA.
3. Either Party may terminate this MOU by written notification to the other Party. This MOU shall expire 180 days after the date of such notification.
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this MOU.
DONE in duplicate at Hong Kong and Santiago on the dates indicated, in the English language.
FOR THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA
FOR THE GOVERNMENT OF THE REPUBLIC OF CHILE
Dated this day of , 2012 Hong Kong
Dated this day of , 2012 Santiago