Title
PACIFIC ALLIANCE-SINGAPORE FREE TRADE AGREEMENT
Preamble
PREAMBLE
The Republic of Chile, the Republic of Colombia, the United Mexican States and the Republic of Peru, as parties to the Pacific Alliance Framework Agreement, and the Republic of Singapore, resolving to:
ACKNOWLEDGE the commitment of the Pacific Alliance to further the development of the objectives and principles established in the Pacific Alliance Framework Agreement, signed in Paranal, Antofagasta, Republic of Chile on 6 June 2012;
STRENGTHEN the ties of friendship and cooperation between them and their people;
ESTABLISH a comprehensive agreement that promotes economic integration to liberalise trade and investment, bring economic growth and social benefits, create new opportunities for workers and businesses, contribute to raising living standards, benefit consumers, reduce poverty and promote sustainable growth;
RECOGNISE their inherent right to regulate and resolve to preserve the flexibility of all Parties to the Pacific Alliance and Singapore to set legislative and regulatory priorities, safeguard public welfare, and protect legitimate public welfare objectives, such as public health, safety, the environment, the conservation of living or non-living exhaustible natural resources, the integrity and stability of the financial system;
SHARE a common aspiration to promote high standards of environmental and labour protection, and to uphold these in the context of sustainable development;
RECOGNISE that small and medium-sized enterprises (SMEs), including micro- enterprises, contribute significantly to economic growth, employment, and innovation, and seek to support the growth and development of SMEs by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
RECOGNISE that enhancing women's economic participation in international trade contributes significantly to sustainable development, and that the advancement of cooperation activities can improve women's access to and benefit from the opportunities created by this Agreement.
ESTABLISH a predictable legal and commercial framework for trade and investment through clear and mutually beneficial rules with the objective of stimulating the expansion and diversification of the trade of goods and services between all Parties to the Pacific Alliance and Singapore, as well as attracting investment to their territories;
REAFFIRM the objective of eliminating barriers to trade in order to facilitate the flow of trade of goods and services and investment between all Parties to the Pacific Alliance and Singapore;
FACILITATE international trade, by promoting efficient, transparent and predictable customs procedures that aim to reduce the cost of trade for their importers and exporters;
AVOID distortions in their reciprocal trade and promote fair competition;
PROMOTE transparency, good governance and the rule of law, and eliminate bribery and corruption in trade and investment;
BUILD on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;
CONSIDER that the Republic of Colombia and the Republic of Peru are Members of the Andean Community and that Decision 598 of the Andean Community requires Andean Community Member Countries negotiating trade agreements with third countries to preserve the Andean legal system in relations between the Andean Community Member Countries;
DEEPEN cooperation between all Parties to the Pacific Alliance and Singapore in order to support the implementation of this Agreement and enhance its benefits; and
RECOGNISE the Republic of Singapore as an Associated State to the Pacific Alliance,
HAVE AGREED AS FOLLOWS:
Body
Chapter 1. INITIAL PROVISIONS
Article 1.1. Establishment of a Free Trade Area
All Parties to the Pacific Alliance and Singapore, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area, in accordance with the provisions of this Agreement.
Article 1.2. Relationship to other International Agreements
1. Recognising the intention of all Parties to the Pacific Alliance and Singapore for this Agreement to coexist with their existing international agreements, each Party to the Pacific Alliance and Singapore affirms:
(a) in relation to existing international agreements to which all Parties to the Pacific Alliance and Singapore are party, including the WTO Agreement, their existing rights and obligations with respect to any Party to the Pacific Alliance or Singapore, as the case may be; and
(b) inrelation to existing international agreements to which at least one Party to the Pacific Alliance and Singapore are party, their existing rights and obligations with respect to the Party to the Pacific Alliance or Singapore, as the case may be.
2. Unless otherwise provided in this Agreement, if a Party considers that a provision of this Agreement is inconsistent (1) with a provision of another agreement to which at least one Party to the Pacific Alliance and Singapore are party, on request, the relevant Parties to the other agreement shall consult with a view to reaching a mutually satisfactory resolution. The aforementioned is without prejudice to a Party's rights and obligations under Chapter 23 (Dispute Settlement). (2)
Article 1.3. Scope
This Agreement shall apply bilaterally between the Republic of Singapore and each Party to the Pacific Alliance. Unless otherwise provided, this Agreement shall not apply between the Republic of Chile, the Republic of Colombia, the United Mexican States and the Republic of Peru.
Chapter 2. GENERAL DEFINITIONS
Article 2.1. General Definitions
For the purposes of this Agreement, unless otherwise provided:
Anti-dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 set out in Annex 1A to the WTO Agreement;
central level of government means:
(a) for Chile, the national level of government;
(b) for Colombia, the national level of government;
(c) for Mexico, the federal level of government;
(d) for Peru, the national level of government; and
(e) for Singapore, the national level of government.
customs administration means the competent authority that is responsible under the laws and regulations of a Party for the administration of customs laws, regulations and, where applicable, policies, and has for each Party to the Pacific Alliance and Singapore the following meaning:
(a) for Chile: the National Customs Service (Servicio Nacional de Aduanas);
(b) for Colombia: the Customs and Taxes National Directorate (Dirección de Impuestos y Aduanas Nacionales DIAN);
(c) for Mexico: the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público);
(d) for Peru: the National Superintendence of Customs and Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria - SUNAT); and
(e) for Singapore: the Singapore Customs,
or their respective successors.
customs duty includes a duty or charge of any kind imposed on or in connection with the importation of a good, and any surtax or surcharge imposed in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article II:2 of the GATT 1994;
(b) anti-dumping or countervailing duty; or
(c) fee or other charge in connection with the importation commensurate with the cost of services rendered.
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
days means calendar days;
enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation;
existing means in effect on the date of entry into force of this Agreement;
Free Trade Commission means the Free Trade Commission established in accordance with Article 22.1 (Free Trade Commission);
GATS means the General Agreement on Trade in Services, set out in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
goods means any merchandise, product, article or material;
goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of a Party;
government procurement means the process by which a government obtains the use of or acquires goods or services, or any other combination thereof, for governmental purposes, and not with a view to commercial sale or resale or use in the production or supply of goods or services for commercial sale or resale;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System,
including its General Rules of Interpretation, Section Notes, Chapter Notes and Subheading Notes, as adopted and implemented by the Parties in their respective laws and regulations;
heading means the first four digits in the tariff classification number under the Harmonized System (HS);
measure includes any law, regulation, procedure, requirement, or practice;
national means a "natural person who has the nationality of a Party" according to Article 2.2 or a permanent resident of a Party;
OECD means the Organisation for Economic Co-operation and Development;
originating means qualifying under the rules of origin set out in Chapter 4 (Rules of Origin and Origin Procedures);
Pacific Alliance Framework Agreement means the Agreement between the Republic of Colombia, the Republic of Chile, the United Mexican States and the Republic of Peru, done at Paranal, Antofagasta, Republic of Chile, on 6th June 2012;
Parties means a Party to the Pacific Alliance, of the one part, and the Republic of Singapore, of the other part, for which this Agreement is in force;
Parties to the Pacific Alliance means parties to the Pacific Alliance Framework Agreement; Party means any State for which this Agreement is in force;
Party to the Pacific Alliance means, individually, the Republic of Chile, the Republic of Colombia, the United Mexican States or the Republic of Peru, as party to the Pacific Alliance Framework Agreement;
person means a natural person or an enterprise;
person of a Party means a national or an enterprise of a Party;
preferential tariff treatment means the customs duty rate applicable to an originating good pursuant to each Party's Tariff Schedule set out in Annex 3-B (Elimination of Customs Duties);
regional level of government means:
(a) for Chile as a unitary Republic, the term regional level of government is not applicable;
(b) for Colombia as a unitary Republic, the term regional level of government is not applicable;
(c) for Mexico, a state of the United Mexican States;
(d) for Peru, regional government in accordance with the Political Constitution of Peru (Constitucién Politica del Per) and other applicable legislation; and
(e) for Singapore, the term regional level of government is not applicable;
Safeguards Agreement means the Agreement on Safeguards, set out in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures, set out in Annex 1A to the WTO Agreement;
SME means a small and medium-sized enterprise, including a micro-sized enterprise;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, set out in Annex 1A to the WTO Agreement;
subheading means the first six digits in the tariff classification number under the Harmonized System (HS);
TBT Agreement means the Agreement on Technical Barriers to Trade, set out in Annex 1A of the WTO Agreement;
WTO means the World Trade Organization, and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on April 15, 1994.
Article 2.2. Party-Specific Definitions
natural person who has the nationality of a Party means:
(a) for Chile, a Chilean as defined in the Political Constitution of the Republic of Chile (Constitución Política de la República de Chile);
(b) for Colombia, Colombians by birth or naturalization, in accordance with Article 96 of the Political Constitution of Colombia (Constitución Política de Colombia);
(c) for Mexico, a national or a citizen in accordance with Articles 30 and 34, respectively, of the Political Constitution of Mexico (Constitución Política de los Estados Unidos Mexicanos);
(d) for Peru, a natural person who has the nationality of Peru by birth, naturalisation or option in accordance with the Political Constitution of Peru (Constitución Politica del Perú) and other relevant domestic legislation; and
(e) for Singapore, a person who is a citizen of Singapore within the meaning of its Constitution and its domestic laws;
territory means:
(a) for Chile, the land, maritime and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law;
(b) for Colombia, besides the continental territory, the Archipelago of San Andrés, Providencia, Santa Catalina and Malpelo are part of Colombia, in addition to the islands, islets, keys, headlands and banks that belong to it. Also part of Colombia is the subsoil, the territorial sea, the contiguous zone, the continental shelf, the exclusive economic zone, the airspace, the segment of the geostationary orbit, the electromagnetic spectrum and the space in which it operates, in accordance with its Constitution and International law;
(c) for Mexico:
(i) the states of the Federation and Mexico City;
(ii) the islands, including the reefs and keys, in the adjacent seas;
(iii) the islands of Guadalupe and of Revillagigedo, situated in the Pacific Ocean;
(iv) the continental shelf and the submarine shelf of such islands, keys and reefs;
(v) the waters of the territorial seas, with the extent and terms established by international law, and its interior maritime waters;
(vi) the space located above the national territory, with the extent and modalities in accordance with the rules established by international law, and
(vii) any areas beyond the territorial seas of Mexico over which Mexico may exercise rights on the seafloor and the sea subsoil, and on the natural resources they contain, in accordance with international law, including the United Nations Convention on the Law of the Sea, as well as its national legislation;
(d) for Peru, the mainland territory, the islands, the maritime areas and the air space above them, under sovereignty or sovereignty rights and jurisdiction of Peru, in accordance with the provisions of the Political Constitution of Peru (Constitución Política del Perú) and other relevant domestic law and international law; and
(e) for Singapore, its land territory, internal waters and territorial sea, including the airspace above them, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise tights with regards to the sea, the sea-bed, the subsoil and the natural resources.
Chapter 3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Section A. Definitions and Scope
Article 3.1. Definitions
For the purposes of this Chapter:
advertising films and recordings means recorded visual media or audio materials, consisting essentially of images and/or sound, showing the nature or operation of goods or services offered for sale or lease by a person of a Party, provided that such materials are suitable for exhibition to prospective customers, but not for broadcast to the general public;
Agreement on Agriculture means the Agreement on Agriculture set out in Annex 1A to the WTO Agreement;
agricultural goods means those goods referred to in Article 2 of the Agreement on Agriculture;
commercial samples of negligible value means commercial or trade samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar or the equivalent amount in the currency of a Party, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or use except as commercial samples;
consular transactions means requirements that goods of a Party intended for export to the territory of the other Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippersâ export declarations, or any other customs documentation required on or in connection with importation;
customs duty includes any duty or charge of any kind imposed on or in connection with the importation of a good, and any surtax or surcharge imposed in connection with such importation, but does not include any:
a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994;
b) anti-dumping or countervailing duty; or
c) fee or other charge in connection with the importation commensurate with the cost of services rendered.
duty-free means free of customs duty;
export subsidies means those referred in Article 1(e) of the Agreement on Agriculture, which is part of the WTO Agreement, including any amendment of that Article;
goods admitted for sports purposes means sports requisites for use in sports contests, demonstrations, or training in the territory of the Party into whose territory the goods are admitted;
goods intended for display or demonstration includes their component parts, ancillary apparatuses and accessories;
import licensing means an administrative procedure requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body of the importing Party as a prior condition for importation into the territory of that Party;
Import Licensing Agreement means the Agreement on Import Licensing Procedures, set out in Annex 1A to the WTO Agreement;
performance requirement means a requirement that:
(a) a given level or percentage of goods or services be exported;
(b) domestic goods or services of the Party granting a waiver of customs duties or an import licence be substituted for imported goods;
(c) a person benefiting from a waiver of customs duties or a requirement for an import licence purchase other goods or services in the territory of the Party that grants the waiver of customs duties or the import licence, or accord a preference to domestically produced goods;
(d) a person benefiting from a waiver of customs duties or a requirement for an import licence to produce goods or supply services in the territory of the Party that grants the waiver of customs duties or the import licence, with a given level or percentage of domestic content; or
(e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows;
but does not include a requirement that an imported good be:
(f) subsequently exported;
(g) used as a material in the production of another good that is subsequently exported;
(h) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or
(i) substituted by an identical or similar good that is subsequently exported;
printed advertising materials means those goods classified in Chapter 49 of the Harmonized System (HS), including brochures, leaflets, pamphlets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicise or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.
Article 3.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Section B. National Treatment
Article 3.3. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article I of GATT 1994, including its interpretative notes. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.