Title
Free Trade Agreement between Chile and Central America
Preamble
The Governments of the Republics of Chile, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua,
DETERMINED TO:
TO STRENGTHEN the bonds of friendship and the spirit of cooperation existing among their peoples;
PROPOSE to hemispheric integration;
ESTABLISH clear and mutually beneficial rules for the promotion and protection of investments, as well as the commercial exchange of their goods and services;
RESPECT their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization (WTO), as well as other bilateral and multilateral instruments of integration and cooperation;
CREATE a larger and more secure market for goods produced and services rendered in their territories, an important element for the facilitation of trade in goods, services and the flow of capital and technology;
TO ATTAIN a better balance in their trade relations;
AVOID distortions in their reciprocal trade;
STRENGTHEN the competitiveness of their enterprises in world markets;
INCREASE employment opportunities and improve the living standards of their peoples;
PROMOTE economic development in a manner consistent with environmental protection and conservation, as well as sustainable development;
PRESERVE their capacity to safeguard the public welfare; and
ENCOURAGE the dynamic participation of the various economic agents, particularly the private sector, in efforts to deepen economic relations between the Parties and to develop and maximize the potential of their joint presence in international markets;
HEREBY ENTER INTO THIS FREE TRADE AGREEMENT
Body
Part One. General Aspects
Chapter 1. Initial Provisions
Article 1.01. Establishment of the Free Trade Area
1. Through the present Treaty, the parties establish the basis for establishing and implementing a free trade area in accordance with Article XXIV of GATT 1994 and the Article V of the GATS.
2. Unless otherwise provided in this Treaty shall apply bilaterally between Chile and each of the countries of Central America individually.
3. In accordance with article 18.01 (4) (Free Trade Commission), the parties may reduce the time limits specified in the schedule of tariff relief through implementing agreements, protocols or lesser under its domestic law to comply with the objectives of this Treaty.
Article 1.02. Objectives
1. The main objectives of this Treaty is as follows:
a) The Free Trade Area;
b) Encourage expansion and diversification of trade in goods and services between the parties;
c) Promote conditions of fair competition in the Free Trade Area;
d) Eliminate barriers to trade and facilitate the movement of goods and services in the Free Trade Area;
e) To promote, protect and substantially increase investment in each party; and
f) Create effective procedures for the implementation and application of this Treaty, joint administration and for the resolution of disputes.
2. The Parties shall interpret and apply the provisions of this Treaty in the light of the objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article 1.03. Compliance
Each Party shall ensure, in accordance with its constitutional rules, take all necessary measures to implement the provisions of this Treaty in its territory and at all levels of government.
Article 1.04. Relation to other International Agreements
1. The Parties confirm their rights and obligations existing between them under the WTO Agreement and other agreements to which they are party.
2. In the event of any inconsistency between the provisions of the agreements referred to in paragraph 1 and the provisions of this Treaty, the latter shall prevail to the extent of the inconsistency.
3. In the event of any inconsistency between this Agreement and the specific trade obligations contained in:
a) The Convention on International Trade in Endangered Species of Wild Fauna and Flora, in Washington on 3 March 1973 and its amendments of 22 June 1979;
b) The Montreal Protocol on Ozone Depleting Substances, on 16 September 1987. as amended 29 June 1990; or
c) The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, on 22 March 1989;
Such obligations shall prevail to the extent of the inconsistency, provided that where a Party has a choice among equally effective and reasonably available means at its disposal to comply with such obligations, choose to submit the lesser degree of inconsistency with the other provisions of this Treaty.
Article 1.05. Succession of Treaties
Any reference to any other international treaty shall be made on the same terms for a successor agreement to which the parties are party.
Chapter 2. General Definitions
Article 2.01. Definitions of General Application
For purposes of this Treaty, unless otherwise specified in another chapter:
Customs valuation agreement means the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade 1994, including its interpretative notes, which is part of the WTO agreement;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated 15 April 1994;
GATS means the General Agreement on Trade in Services, which is part of the WTO agreement;
Tariff: any customs import duty or tax or charge of any other kind imposed in connection with the importation of goods, including any form of surtax or surcharge on imports, except any:
a) Charge equivalent to an internal tax established in accordance with paragraph 2 of article III of the GATT 1994;
b) Anti-dumping or countervailing measures to be applied in accordance with the legislation of each party and is not applied inconsistently with chapter 7 (unfair trading practices);
c) Duty or other charge in connection with importation commensurate with the cost of services rendered;
d) Premium offered or collected on imported goods, arising out of any tendering system in respect of the administration of quantitative import restrictions or preference or aranceles-cuota tariff quotas;
Chapter means the first two digits of the Harmonized System;
Central America: the Republics of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua;
Commission: the Free Trade Commission established under article 18.01 (Free Trade Commission);
- calendar days means calendar days; or
Enterprise means any legal person constituted or organized under the applicable law of a party, whether or not for profit and whether privately-owned or governmental and other organizations or economic units which are constituted or organised under the applicable law of a party, such as Trustees shares, firms, sole proprietorship enterprise co-investments or other associations. notwithstanding the above, not including companies with bearer shares;
State ENTERPRISE means an enterprise that is owned by a party or under the control of the same through ownership rights;
Understanding: the Understanding on Rules and Procedures Governing the Settlement of Disputes, which is part of the WTO agreement;
Existing means in effect on the date of Entry into Force of this Treaty;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO agreement;
Measure means any law, regulation, provision or practice, among others;
Goods, means any material or product part;
Goods of a Party means a national product as understood in GATT 1994 or goods such as the parties agree to confer the nature and includes originating goods of that Party. a good of a Party may include materials of other countries;
Goods originating a good means that qualifies as originating in accordance with chapter 4 (rules of origin);
National means a natural person or a party according to annex 2.01; Central American country: a Central American country;
Means any State Party which has entered into force this Treaty; heading means the first four digits of the Harmonized System; person means a natural person or a natural person; or an enterprise of a Party means a national or an enterprise of a party;
Programme of tariff relief: established in the annex 3.04 (2) (tariff relief);
Uniform: the regulations established in accordance with article 5.12 (uniform regulations);
Secretarial: the secretariat established in accordance with articles 1803 (Secretariat);
Harmonized System (HS) means the Harmonized Commodity Description and Coding System of goods which is in force, including its general rules of interpretation and their legal notes, of section, chapter headings and subheadings, in the form in which the parties have adopted and implemented in their respective laws;
Subheading means the first six digits of the Harmonized System; and
Territory: the land, sea and air space of each party as well as the exclusive economic zone and continental shelf over which it exercises sovereign rights and jurisdiction in accordance with its legislation and international law.
Country-specific definitions
For purposes of this Treaty, unless otherwise specified in another chapter:
National:
a) With respect to: Chile
i) A Chilean as defined in article 10 of the Political Constitution of the Republic of Chile; and
ii) A person under Chilean law, having the character of a permanent resident;
b) With respect to Costa Rica:
i) Costa Ricans by birth according to article 13 of the Political Constitution of the Republic of Costa Rica;
ii) Costa Ricans by naturalization according to article 14 of the Political Constitution of the Republic of Costa Rica; and
iii) A person who, in accordance with the legislation, having the character of a permanent resident;
c) With respect to El Salvador:
i) Salvadorans by birth, as defined in article 90 of the Constitution;
ii) Salvadorans by naturalization, as defined in article 92 of the Constitution; and
iii) A person who, in accordance with the legislation, having the character of a permanent resident;
d) Guatemala:
i) Those born in the territory of the Republic of Guatemala, Guatemalan ships and aircraft and Guatemalan, born abroad. with the exception of diplomatic officials and their legally equated;
ii) Nationals by birth republics that formed the Federation of Central America, if they acquire domicile in Guatemala and sworn statement, by a competent authority, would be Guatemalans. in this case shall retain their nationality of origin without prejudice to what is established in Central American treaties or conventions; and
iii) Who obtain naturalization according to law;
e) With respect to Honduras:
i) The Honduran by birth, as defined in article 23 of the Constitution of the Republic of Honduras; and
ii) The Honduran by naturalization, as defined in article 24 of the Constitution of the Republic of Honduras; and
f) With respect to Nicaragua: a Nicaraguan pursuant to article 15 of the Political Constitution of the Republic of Nicaragua. notwithstanding the above, foreigners with permanent resident status, within the meaning of article 9 of the Migration Act, Act No 153, published in the Gazette No 80 of 30 April 1993 shall enjoy the benefits, rights and obligations that this treaty accorded to nationals, only in relation to the implementation of the Treaty.
Part Two. Trade In Goods
Chapter 3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Section A. Definitiones and Scope of Application
Article 3.01. Definitions
For purposes of this chapter:
Temporary admission of goods: the temporary admission of temporary admission of goods or goods;
Used:
a) Actually consumed; or
b) Processed or manufactured so as to result in a substantial change in value, form or use of the good or good in the production of another;
Printed materials advertising: brochures, pamphlets, leaflets, yearbooks trade catalogues, business associations, materials and posters tourism promotion, used to promote or publish, advertise a good or service and distributed free of charge, classified in chapter 49 of the Harmonized System;
Goods admitted for sports purposes: sports equipment for use in competitions, sports events or training in the territory of the Party to which is imported;
Agricultural goods: goods classified in chapters, any of the following headings or subheadings of the harmonized system according to the 1996 amendment:
(note: the description is provided for purposes of reference)
Tariff classification Description
| chapters | 01 a 24 | (except fish and fish products) |
| subheading | 2905.43 | manitol |
| subheading | 2905.44 | sorbitol |
| item | 33.01 | essential oils |
| items | 35.01 a 35.05 | albuminoid materials, modified starch or starch-based products, modified modified starch products |
| subheading | 3809.10 | finishing and finishing products |
| subheading | 3824.60 | sorbitol, other than that of subheading 2905.44 |
| items | 41.01 a 41.03 | hides and skins |
| item | 43.01 | raw furskin |
| items | 50.01 a 50.03 | raw silk and silk waste |
| items | 51.01 a 51.03 | wool and hair |
| items | 52.01 a 52.03 | seed cotton, cotton waste and carded or combed cotton or combed |
| item | 53.01 | raw linen |
| item | 53.02 | raw hemp |
Goods for exhibition or demonstration: includes components, ancillary apparatus and accessories ancillary equipment and accessories
Commercial samples of negligible value: the commercial or non-commercial samples valued (individually or in the aggregate sent) in no more than one United States dollar (US) or the equivalent amount in the currency of any of the parties or that are marked, broken, perforated or treated so that the disqualifying for sale or for any use that is not the samples;
Advertising films recorded: visual media, with or without sound which are essentially images showing the nature or operation of goods or services offered for sale or lease or established by a person resident in the territory of a Party, provided that the motion pictures suitable for exhibition to prospective customers but not for broadcast to the general public, which are imported in each packets that contain no more than one copy of each film and do not form part of a larger consignment;
Fish and fish products: fish, crustaceans, molluscs or other aquatic invertebrates, marine mammals and their derivatives, falling within chapters, any of the following headings or subheadings of the harmonized system according to the 1996 amendment:
(note: the description is provided for purposes of reference)
Tariff classification Description
| Chapter | 03 | fish and crustaceans, mollusks, and other aquatic invertebrates invertebrates |
| item | 05.07 | ivory, tortoise shell, marine mammals, horns, antlers, hooves, hoofs, hooves, nails, claws and beaks, and their products. products |
| item | 05.08 | coral and similar products |
| item | 05.09 | natural sponges of animal origin |
| subitem | 0511.91 | products of fish or crustaceans, molluscs or any other invertebrate marine other marine invertebrates; dead animals of Chapter 3 |
| item | 15.04 | fats or oils and their fractions, of fish or marine mammals, and their marine mammals |
| item | 16.03 | non-meat extracts and juices |
| item | 16.04 | fish preparations or canned fish |
| item | 16.05 | prepared or preserved crustaceans or molluscs and other marine invertebrates marine invertebrates |
| subitem | 2301.20 | meal, feed, fish pellets |
Repairs or alterations: those that do not include operations or processes that destroy the essential characteristics of a good or convert it into a new or commercially different good. For these purposes, it shall be understood that an operation or process that forms part of the production or assembly of an unfinished good to transform it into a finished good is not a repair or alteration of the unfinished good; the component part of a good is a good that may be subject to repair or modification; and
Export subsidies means those which relate to:
a) The granting of direct subsidies for export, including payments in kind, by governments or government agencies, to an enterprise and a branch of production, to an agricultural producers of goods to a cooperative or other producers of such association or to a marketing board;
b) The sale or export for disposal of non-commercial stocks of agricultural goods, by governments or government agencies at a price lower than the comparable price charged to buyers in the domestic market for a similar agricultural goods;
c) Payments on the export of agricultural goods that are financed by virtue of governmental measures, whether or not a charge on the public accounts, including payments financed from the proceeds of a levy imposed on the agricultural goods concerned or to an agricultural product from which the exported agricultural goods;
d) The award of subsidies to reduce the costs of marketing services exports of agricultural goods (other than the easy availability of promotion and advice on exports), including the costs of handling, processing and other processing costs and the costs of international transport and freight;
e) The costs of the internal transport and freight charges on export shipments, established or imposed by Governments on terms more favourable than for domestic shipments; or
f) Subsidies on agricultural goods contingent on their incorporation in exported goods.
Article 3.02. Scope
This chapter shall apply to trade in goods between the parties.
Section B. National Treatment
Article 3.03. National Treatment
1. Each Party shall accord to the National Treatment goods of another Party in accordance with article III of the GATT 1994, including its interpretative notes are incorporated into this Treaty
And are an integral part thereof.
2. For purposes of paragraph 1, each Party shall accord to the goods of the other party treatment no less favourable than the most favourable treatment accorded by that Party to or similar goods directly competing substitute of national origin.
Section C. Tariffs
Article 3.04. Tariff Relief
1. Except as otherwise provided in this Treaty, neither party may increase an existing customs duty or introduce a new customs duty on originating goods.
2. Except as otherwise provided in this Treaty, from the entry into force of the same, each Party shall progressively eliminate its customs duties on goods originating as set out in annex 3.04 (tariff relief programme).
3. Paragraph 1 does not prohibit a party from increasing a customs tariff to a level not exceeding the established in the schedule of tariff relief, when the Customs Tariff previously been unilaterally reduced to a level lower than that established in the schedule of tariff relief. during the process of tariff relief, the parties undertake to apply in their mutual trade of goods originating, the lesser of the customs duties resulting from a comparison between the established in accordance with the schedule of tariff relief and applied in accordance with article 1 of the GATT 1994.
4. At the request of any of the Parties, the Parties shall consult to consider accelerating the elimination of customs duties set out in the schedule of tariff relief.
5. The Agreement adopted under paragraph 4, with respect to the accelerated elimination of customs duties on goods originating shall be in terms of article 18.01 (4) and (5) (Free Trade Commission), and shall prevail over any customs tariff or category of relief identified in accordance with the schedule of tariff relief for such goods.
6. Except as provided in annex 3.04 (6), the customs tariffs of relief goods of ad-valorem tariff are established.
7. Paragraphs 1 and 2 do not prevent a party from maintaining or increasing a customs tariff as may be permitted in accordance with the understanding or any other agreement which is part of the WTO Agreement.
Article 3.05. Temporary Admission of Goods
1. Each Party shall allow the temporary admission of goods free of customs tariff, including exemption from the tax collected by Chile by the use of this regime specified in annex 3.05 on single stream comprehensive to:
a) Professional equipment necessary for carrying out the activity, trade or profession of a business person who meets the requirements for temporary entry
Consistent with the provisions of Chapter 14 (temporary entry for business persons);