Sector: Cultural Industries
Obligations Concerned: Most-Favored-Nation Treatment (Articles 10.3, 11.3)
Description: Investment and Cross-Border Services
Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any existing or future bilateral or multilateral international agreement with respect to cultural industries, such as audiovisual cooperation agreements. For greater certainty, government supported subsidy programs for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement. Cultural industries means persons engaged in any of the following activities: (a) Publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing; (b) Production, distribution, sale, or display of recordings of movies or videos; (c) Production, distribution, sale, or display of music recordings in audio or video format; (d) Production, distribution, or sale of printed music scores or scores readable by machines; or (e) Radiobroadcasts aimed at the public in general, as well as all radio, television and cable television-related activities, satellite programming services, and broadcasting networks.
Sector: Social Services
Obligations Concerned: National Treatment (Articles 10.2, 11.2) Most-Favored-Nation Treatment (Articles 10.3, 11.3) Local Presence (Article 11.5) Performance Requirements (Article 10.5) Senior Management and Boards of Directors (Article 10.6)
Description: Investment and Cross-Border Services
Chile reserves 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.
Sector: Environmental Services
Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3) Local Presence (Article 11.5)
Description: Cross-Border Services
Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water, and sanitation services, such as sewage systems, waste disposal, and waste water treatment may only be provided by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law. This reservation shall not apply to consultancy services retained by said juridical persons.
Sector: Construction Services
Obligations Concerned: National Treatment (Article 11.2) Local Presence (Article 11.5)
Description: Cross-Border Services
Chile reserves the right to adopt or maintain any measure with respect to the provision of construction services rendered by foreign juridical persons or legal entities imposing requirements of residence, registration, and/or any other form of local presence, or imposing the obligation of giving financial security for work as a condition for the provision of construction services.
Sector: All Sectors
Obligations Concerned Market Access (Article 11.4)
Description: Investment and Cross-Border Services
Chile reserves the right to adopt or maintain any measure relating to article 11.4, except for the following sectors and sub-sectors subject to the limitations and conditions listed below:
Legal services: For (a) and (c): None, except in the case of receivers in bankruptcy (síndicos de quiebra) who must be duly authorized by the Minister of Justice, and they can only work in the place where they reside. For (b): None. For (d): No commitments, except as indicated in Labor Code restriction;
Accounting, auditing, and bookkeeping services: For (a) and (c): None, except the external auditors of financial institutions must be inscribed in the Register of External Auditors of the Superintendencia de Bancos e Instituciones Financieras and in the Superintendencia de Valores y Seguros. Only firms legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones), and whose main line of business is auditing services, may be inscribed in the Register. For (b): None. For (d): No commitments, except as indicated in Labor Code restriction;
Taxation Services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction;
Architectural Services: For (c): None. For (d): No commitments, except as indicated in Labor Code restriction;
Engineering Services: For (c): None. For (d): No commitments, except as indicated in Labor Code restriction. Veterinary Services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Services provided by midwives, nurses, physiotherapists, and paramedical personnel: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Computer and Related Services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Real Estate Services: Involving owned or leased property or on a fee or contract basis: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Rental/leasing services without crew/operators, related to vessels, aircraft, any other transport equipment, and other machinery and equipment: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Advertising services, market research and public opinion polling services, management consulting services, services related to management consulting, technical testing, and analysis services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Services related to agriculture, hunting, and forestry: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction
Services related to mining, placement and supply services of personnel, investigation, and security services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Maintenance and repair of equipment (not including vessels, aircraft, or other transport equipment), building-cleaning services, photographic services, packing services, and convention services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Printing and publishing services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
National or international long-distance telecommunications services: For (a), (b), (c), and (d): Chile reserves the right to adopt or maintain any measure that is not inconsistent with Chile’s obligations under Article XVI of GATS.
Local basic telecommunication services and networks, intermediate telecommunications services, supplementary telecommunications services, and limited telecommunications services: For (a), (b), and (c): a concession granted by means of a Decreto Supremo issued by the Ministerio de Transportes y Telecomunicaciones shall be required for the installation, operation, and exploitation of public and intermediary telecommunications services in Chilean territory. Only juridical persons organized under the Chilean law shall be eligible for such concessions.
An official decision issued by the Subsecretaría de Telecomunicaciones shall be required to render Supplementary Telecommunications Services, consisting of additional services provided by hooking up equipment to public networks. Said decision refers to compliance with the technical standards established by the Subsecretaría de Telecomunicaciones and nonalteration of the essential technical features of networks or of the permissible technological or basic service modalities provided through them.
A permit issued by the Subsecretaría de Telecomunicaciones shall be required for the installation, operation, and development of limited telecommunications services.
International traffic shall be routed through the installations of a company holding a concession granted by the Ministerio de Transporte y Telecomunicaciones.
For (d): No commitments, except as indicated in Labor Code restriction.
Commission agents services, wholesale trade services, retailing services, franchising, and other distribution: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Hotels and restaurants (including catering), travel agencies and tour operators services, and tourist guide services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Entertainment services (including theater, live bands, and circuit services), news agencies services, libraries, archives, museums, and other cultural services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Sporting and other recreational services: For (a), (b), and (c): None, except that a specific type of legal entity may be required for sporting organizations that develop professional activities. In addition, (1) it is not permitted to participate with more than one team in the same category of a sport competition; (2) specific II-CH-18 regulations may be established on equity ownership in sporting companies; and (3) minimal capital requirements may be imposed. For (d): No commitments, except as indicated in Labor Code restriction.
Road Transport: Freight transportation, rental of commercial vehicles with operator; maintenance and repair of road transport equipment; supporting services for road transport services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction.
Services auxiliary to all transport: cargo handling services; storage and warehouse services; freight transport agency services: For (a), (b), and (c): None. For (d): No commitments, except as indicated in Labor Code restriction. Pipeline Transport: Transportation of fuels and other goods: For (a), (b), and (c): None, except that the service has to be supplied by juridical persons established under Chilean law and the supply of the service may be subject to a concession on a national treatment basis. For (d): No commitments, except as indicated in Labor Code restriction.
Aircraft repair and maintenance services: For (a): No commitments. For (b) and (c): None. For (d): No commitments, except as indicated in Labor Code restriction;
Chile will set out in this Annex, within one year of the date of entry into force of this Agreement, any existing non-conforming measure that it maintains with respect to energy-related services (services incidental to energy distribution, exploration and development, and energy marketing services) and adult education (educational services related to second-language training, corporate, business, and industrial training and skill upgrading, which includes consulting services relating to technical support, advice, curriculum, and program development in education).
Consultation Clause: Either Party shall have the right to raise issues regarding coverage of Annex II on Article 11.4. For purpose of this non-conforming measure: 1. (a) refers to the supply of a service from the territory of one Party into the territory of the other Party; 2. (b) refers to the supply of a service in the territory of a Party by one person of that Party to a person of the other Party; 3. (c) refers to the supply of a service in the territory of a Party by an investor of the other Party or by a covered investment; and 4. (d) refers to the supply of a service by a national of a Party in the territory of the other Party.
Side Letter on Television
June 6, 2003
The Honorable
Robert B. Zoellick
United States Trade Representative
Dear Ambassador Zoellick:
I have the honor to confirm the following understanding reached by the delegations of the United States of America and the Republic of Chile in the course of negotiations regarding Chile’s nonconforming measure on Open Television Programming contained in Chile’s Annex I of the Free Trade Agreement between our two Governments signed this day.
For the purposes of the Free Trade Agreement between our two governments:
- the law of Chile gives the Consejo Nacional de Television de Chile the right to require up to 40% per channel public (open) television programming to consist of national production. This percentage is not applied to cable television.
- the 40% requirement has to be mandated through a Consejo resolution. However, since its creation in 1989, the Consejo has never needed to adopt said resolution since national production programming has always exceeded the minimum requirement. On average, national production in open television has been over 50% of programming.
- the Consejo monitors the percentage of national content by calculating at the end of the year the content level based on a two months sample of that year. As the level of national content has never been less than that required by law, the Consejo has never imposed the requirement.
I have the honor to propose that this letter and your letter of confirmation in reply shall constitute an agreement between our two Governments, to enter into force on the entry into force of the Free Trade Agreement.
Sincerely,
María Soledad Alvear Valenzuela
June 6, 2003
The Honorable
María Soledad Alvear Valenzuela
Minister of Foreign Relations
Dear Minister Alvear:
I am pleased to receive your letter of today’s date, which reads as follows:
“I have the honor to confirm the following understanding reached by the delegations of the United States of America and the Republic of Chile in the course of negotiations regarding Chile’s non-conforming measure on Open Television Programming contained in Chile’s Annex I of the Free Trade Agreement between our two Governments signed this day.
For the purposes of the Free Trade Agreement between our two governments:
- the law of Chile gives the Consejo Nacional de Television de Chile the right to require up to 40% per channel public (open) television programming to consist of national production. This percentage is not applied to cable television.
- the 40% requirement has to be mandated through a Consejo resolution. However, since its creation in 1989, the Consejo has never needed to adopt said resolution since national production programming has always exceeded the minimum requirement. On average, national production in open television has been over 50% of programming.
- the Consejo monitors the percentage of national content by calculating at the end of the year the content level based on a two months sample of that year. As the level of national content has never been less than that required by law, the Consejo has never imposed the requirement.
I have the honor to propose that this letter and your letter of confirmation in reply shall constitute an agreement between our two Governments, to enter into force on the entry into force of the Free Trade Agreement.”
I have the honor to confirm that the understanding referred to in your letter is shared by my Government, and that your letter and this letter in reply shall constitute an agreement between our two respective Governments, to enter into force on the entry into force of the Free Trade Agreement.
Sincerely,
Robert B. Zoellick
Attachments
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE ON ENVIRONMENTAL COOPERATION
The Government of the United States of America and the Government of the Republic of Chile:
CONSCIOUS of the importance of cooperation to protect the environment and the conservation of natural resources,
NOTING the long and productive history of bilateral environmental cooperation between the Parties,
EMPHASIZING the importance of building capacity to protect the environment in concert with the strengthening of trade and investment relations as reflected in the US-Chile Free Trade Agreement, in particular in Article 4 of its Environment Chapter and its Annex, and in concert with other mechanisms for cooperation between their countries,
REAFFIRMING that economic development, social development and environmental protection are interdependent and mutually reinforcing components of sustainable development and considering the necessity of augmenting institutional, professional and scientific capacity to achieve this objective for the well being of present and future generations,
BELIEVING that coordination of cooperation activities avoids duplication and ensures maximum efficacy and efficiency,
RECOGNIZING the importance of the participation of civil society to achieve these objectives, and CONVINCED of the need for greater promotion of environmental education and awareness,
Have agreed as follows:
Article I
The Government of the United States of America and the Government of the Republic of Chile, hereinafter "the Parties," agree to cooperate in the field of environmental protection, including natural resources. The objective of this Agreement is to establish a framework for cooperation between the Parties to promote the conservation and protection of the environment, the prevention of pollution and degradation of natural resources and ecosystems, and the rational use of natural resources, in support of sustainable development.
Article II
1. The Parties ' hereby establish a Joint Commission for Environmental Cooperation (the "Commission") that is cochaired by designated high level officials of the Department of State of the United States and the Ministry of Foreign Affairs of Chile. The Chair from each Party shall designate up to five representatives from its government agencies to serve on the Commission, as appropriate. Each Party shall identify a point of contact for administrative purposes related to work of the Commission.
2. The Commission shall be responsible for
a) establishing and developing programs of work resulting from this Agreement as described in Article III below;
b) examining and evaluating the cooperative activities under this Agreement;
c) making recommendations to the Parties on ways to improve cooperation under this Agreement; and
d) undertaking other activities as the Parties agree.
3. The Commission shall meet at least every two years, alternately in the United States and Chile. In the intervals between sessions of the Commission, representatives of the Parties may meet to analyze and promote the implementation of this Agreement and to exchange information on the progress of cooperative programs, projects and activities.
4. Unless otherwise agreed, each Party shall assume the costs of its participation on the Commission and its work.
Article III
1. The work programs shall reflect national priorities for cooperative activities as agreed upon by the Parties. In developing and implementing the work programs, the Commission shall take into account the views and recommendations of the appropriate government agencies in each country as well as the Environment Affairs Council established by the United States Chile Free Trade Agreement, and, where relevant to environmental issues, the Joint Committee established by the Basic Agreement Relating to Scientific and Technological Cooperation Between the Government of the United States of America and the Government of the Republic of Chile done at Washington on May 14, 1992, as extended by the exchange of diplomatic notes dated May 5, 1999 and June 22, 1999.
2. The program of work shall, inter alia, include activities related to:
a) the collection and publication of comparable information on the Parties' environmental legislation, indicators and enforcement activities;
b) the exchange of information on environmental policies, laws and practices in both countries;
c) the exchange of information on the implementation of multilateral environmental agreements to which Chile and the United States are both parties; and
d) the promotion of good domestic practices leading to sustainable management of the environment.
Article IV
1. The Commission should promote the development of opportunities for public participation in cooperative projects.
2. Each Party should solicit, and take into account as appropriate, the views of its public with respect to the work plan and should review and respond to such communications in accordance with its own domestic procedures.
Article V
The cooperation contemplated in this Agreement may include:
(a) exchange of professionals, technicians, and specialists to promote the development and implementation of environmental laws, policies and standards;
(b) organization of joint conferences, seminars, workshops, meetings, training sessions and outreach and education programs;
(c) support for joint programs and environmental technological and practical demonstrations, including projects, research studies and reports;
(d) facilitation of linkages among representatives from academia, industry, and government to promote the exchange of best practices and environmental information and data of interest to the Parties;
(e) exchange of information and consultation on national environmental programs; and
(f) such other forms of environmental cooperation as may be mutually agreed.
Article VI
The Commission shall also encourage and facilitate, as appropriate and in accordance with this Agreement, direct contacts and cooperation between government agencies, universities, research centers, institutions, firms and other entities of the Parties, and the conclusion of implementing arrangements between them for the conduct of cooperative environmental activities under this Agreement.
Article VII
1. All cooperative activities under this Agreement shall be subject to the availability of funds and human resources and to the applicable laws and regulations of each Party.
2. Arrangements for funding environmental cooperation under this Agreement may include:
(a) cooperative activities jointly financed as agreed by the Parties;
(b) cooperative activities in which each institution, organization, or agency will assume the costs of its own participation; and
(c) cooperative activities financed, as appropriate, by private institutions, foundations, or public international organizations.
Article VIII
Each Party shall facilitate the entry of equipment and personnel necessary for activities related to this Agreement into its territory, subject to its laws and regulations.
Article IX
1. All technical information obtained through the implementation of this Agreement will be available to both Parties.
2. In the event that intellectual property is created, the Parties shall consult to determine the allocation of the rights to that intellectual property, taking into account the Basic Agreement Relating to Scientific and Technological Cooperation Between the Government of the United States of America and the Government of the Republic of Chile and its Annexes, referenced in Article III of this Agreement.
Article X
In the event that information deemed confidential under the laws of either Party, or identified in a timely fashion as "business confidential," is furnished or created under the Agreement, each Party and its participants shall protect such information in accordance with applicable laws, regulations, and administrative practices. Information may be identified as "business-confidential" if a person having the information may derive an economic benefit from it or may obtain a competitive advantage over those who do not have it, the information is not generally known or publicly available from other sources, and the owner has not previously made the information available without imposing in a timely manner an obligation to keep it confidential.
Article XI
1. The Agreement shall enter into force 60 days after the date of the last notification communicating the fulfillment of internal domestic requirements.
2. The Agreement shall remain in force indefinitely. The Parties may terminate the Agreement at any time through written notification. The termination will take effect six months from the date such written notification is received, and unless otherwise agreed, shall not affect the validity of any activities not fully completed at the time of termination.
3. The Agreement may be amended by written consent of the Parties. The amendments will enter into force in the same manner as set forth in paragraph 1.
IN WITNESS WHEREOF the undersigned, being duly authorized by their respective Governments, have signed this Agreement.
DONE at Santiago, in duplicate, this 17th day of June, 2003, in the English and Spanish languages, both texts being equally authentic.
FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA
FOR THE GOVERNMENT OF THE REPUBLIC OF CHILE