6. Unless the Panel has determined that the responding Party has eliminated the non-conformity or the nullification or impairment, the complaining Party may suspend benefits up to the level the Panel has determined under paragraph 5 or, if the Panel has not determined the level, the level the complaining Party has proposed to suspend under paragraph 3. If the Panel determines that the complaining Party has not followed the principles and procedures set out in paragraph 4, the Panel shall set out in its determination the extent to which the complaining Party may suspend benefits in which subject matter in order to ensure full compliance with the principles and procedures set out in paragraph 4. The complaining Party may suspend benefits only in a manner consistent with the Panelâs determination.
Article 23.22. Compliance Review
1. Without prejudice to the procedures in Article 23.21, if a responding Party considers that it has eliminated the non-conformity or the nullification or impairment found by the Panel, it may refer the matter to the Panel by providing a written notice to the complaining Party or Parties. The Panel shall issue its report on the matter no later than 90 days after the responding Party provides written notice.
2. Ifthe Panel determines that the responding Party has eliminated the non-conformity or the nullification or impairment, the complaining Party or Parties shall promptly reinstate any benefits suspended under Article 23.21.
Article 23.23. Administration of Dispute Settlement Proceedings
1, Each Party shall:
(a) designate an office to provide administrative support to a Panel covered by this Chapter, in accordance with the Rules of Procedure; and
(b) notify the other Parties of the location of its designated office.
2. Each Party shall be responsible for the operation of its designated office.
Article 23.24. Private Rights
No Party shall provide for a right of action under its law against the other Party on the ground that a measure of that other Party is inconsistent with its obligations under this Agreement, or that the other Party has otherwise failed to carry out its obligations under this Agreement.
Article 23.25. Alternative Dispute Resolution
1. The Parties shall, to the extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area.
2. To this end, the Parties shall provide appropriate procedures to ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in those disputes.
3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to, and is in compliance with, the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on 10 June 1958.
Chapter 24. EXCEPTIONS
Article 24.1. General Exceptions
1. For the purposes of Chapters 3 (National Treatment and Market Access for Goods), 4 (Rules of Origin and Origin Procedures), 5 (Customs Administration and Trade Facilitation), 6 (Sanitary and Phytosanitary Measures), and 7 (Technical Barriers to Trade), Article XX of GATT 1994 and its interpretive notes are incorporated into this Agreement and made part of this Agreement, mutatis mutandis.
2. The Parties understand that the measures referred to in Article XX(b) of GATT 1994 include environmental measures necessary for protecting human, animal or plant life or health, and that Article XX(g) of GATT 1994 applies to the measures related to the conservation of living and non- living exhaustible natural resources.
3. For the purposes of Chapters 9 (Cross-Border Trade in Services), 10 (International Maritime Transport Services), 11 (Temporary Entry for Business Persons), 12 (Telecommunications) and 13 (Electronic Commerce) (1), Article XIV of GATS (including its footnotes) is incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XIV(b) of GATS include environmental measures necessary for protecting human, animal or plant life or health.
Article 24.2. Security Exceptions
Nothing In this Agreement shall be construed to:
(a) require a Party to furnish or allow access to any information the disclosure of which it considers contrary to its essential security interests;
(b) preclude a Party from applying measures that it considers necessary for the protection of its essential security interests; or
(c) preclude a Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
Article 24. Taxation Measures
1. For the purposes of this Article:
designated authorities means:
(a) for Chile, the Undersecretariat of Finance;
(b) for Colombia, the Technical Vice-Ministry of the Ministry of Finance and Public Credit;
(c) for Mexico, the Ministry of Finance and Public Credit; (d) for Peru, the Ministry of Economy and Finance;
(e) for Singapore, Chief Tax Policy Officer, Ministry of Finance, or any such public officer as may be designated by Singapore;
or a successor of these designated authorities as notified in writing to the other Party.
tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement; and
taxes and taxation measures include excise duties, but do not include:
(a) acustoms duty, as defined in Article 2.1 (General Definitions); or
(b) the measures listed in subparagraphs (b) and (c) of that definition. 2. Except as provided in this Article, this Agreement shall not apply to taxation measures.
3. This Agreement shall not affect the rights and obligations of either Party under any tax convention. In the event of any inconsistency between this Agreement and any such tax convention, that convention shall prevail to the extent of the inconsistency.
4. In the case of a tax convention to which one or more of the Parties to the Pacific Alliance and Singapore are party, if an issue arises as to whether any inconsistency exists between this Agreement and the tax convention, the issue shall be referred to the designated authorities of the relevant Parties to the Pacific Alliance and Singapore. The designated authorities of the relevant Parties to the Pacific Alliance and Singapore shall have six months from the date of referral of the issue to make a determination as to the existence and extent of any inconsistency. If the designated authorities agree, the period may be extended up to 12 months from the date of referral of the issue. No procedures concerning the measure giving rise to the issue may be initiated under Chapter 23 (Dispute Settlement) or Article 8.20 (Submission of a Claim to Arbitration) until the expiry of the six-month period, or any other period as may have been agreed by the designated authorities. A panel or tribunal established to consider a dispute related to a taxation measure shall accept as binding a determination of the designated authorities of the Parties made under this paragraph.
5. Notwithstanding paragraph 3:
(a) Article 3.3 (National Treatment) and such other provisions of this Agreement as are necessary to give effect to that Article shall apply to taxation measures to the same extent as does Article III of GATT 1994; and
(b) Article 3.10 (Export Duties, Taxes or Other Charges) shall apply to taxation measures.
6. Subject to paragraph 3:
(a) Article 9.3 (National Treatment) shall apply to taxation measures on income, on capital gains, on the taxable capital of corporations, or on the value of an investment or property (2) (but not on the transfer for that investment or property), that relate to the purchase or consumption of particular services, except that nothing in this subparagraph shall prevent a Party from conditioning the receipt or continued receipt of an advantage that relates to the purchase or consumption of particular services on requirements to provide the service in its territory; and
(b) Article 8.5 (National Treatment), Article 8.6 (Most-Favoured-Nation Treatment), Article 9.3 (National Treatment) and Article 9.4 (Most-Favoured-Nation Treatment) shall apply to all taxation measures, other than those on income, on capital gains, on the taxable capital of corporations, on the value of an investment or propertyâ (but not on the transfer of that investment or property), or taxes on estates, inheritances, gifts and generation-skipping transfers,
but nothing in the Articles referred to in subparagraphs (a) and (b) shall apply to:
(c) any most-favoured-nation obligation with respect to an advantage accorded by a Party pursuant to a tax convention;
(d) anon-conforming provision of any existing taxation measure;
(e) the continuation or prompt renewal of a non-conforming provision of any existing taxation measure;
(f) an amendment to a non-conforming provision of any existing taxation measure to the extent that the amendment does not decrease its conformity, at the time of the amendment, with any of those Articles;
(g) the adoption or enforcement of any new taxation measure aimed at ensuring the equitable or effective imposition or collection of taxes, including any taxation measure that differentiates between persons based on their place of residence for tax purposes, provided that the taxation measure does not arbitrarily discriminate between persons, goods or services of the Parties; (3)
(h) a provision that conditions the receipt or continued receipt of an advantage relating to the contributions to, or income of, a pension trust, pension plan, superannuation fund or other arrangement to provide pension, superannuation or similar benefits, on a requirement that the Party maintain continuous jurisdiction, regulation or supervision over that trust, plan, fund or other arrangement; or
(i) any excise duty on insurance premiums to the extent that such tax would, if levied by the other Party, be covered by subparagraph (d), (e) or (f).
7. Subject to paragraph 3, and without prejudice to the rights and obligations of the Parties under paragraph 5, Article 8.9.3 (Performance Requirements), Article 8.9.4, Article 8.9.5, Article 8.9.6, Article 8.9.7, Article 8.9.8, Article 8.9.9 and Article 8.9.11 shall apply to taxation measures.
8. Article 8.13 (Expropriation and Compensation) shall apply to taxation measures. However, no investor may invoke Article 8.13 (Expropriation and Compensation) as the basis for a claim if it has been determined pursuant to this paragraph that the measure is not an expropriation. An investor that seeks to invoke Article 8.13 (Expropriation and Compensation) with respect to a taxation measure must first refer to the designated authorities of the Party of the investor and the respondent Party, at the time that it gives its notice of intent under Article 8.20 (Submission of a Claim to Arbitration), the issue of whether that taxation measure is not an expropriation. If the designated authorities do not agree to consider the issue or, having agreed to consider it, fail to agree that the measure is not an expropriation within a period of six months of the referral, the investor may submit its claim to arbitration under Article 8.20 (Submission of a Claim to Arbitration).
9. This Agreement shall not prevent Singapore from adopting taxation measures no more trade restrictive than necessary to address Singaporeâs public policy objectives arising out of its specific constraints of space.
Article 24.4. 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. When the disclosure of such information is necessary to comply with the laws and regulations of a Party, that Party shall notify the other Party which provided the information in confidence before such disclosure is made.
2. Nothing in this Agreement shall be construed to require a Party to furnish or allow access to information, the disclosure of which would be contrary to its laws and regulations or would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
Article 24.5. Temporary Safeguard Measures
1. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to transfers or payments from the current account in the event of serious balance of payments and external financial difficulties or a threat thereof.
2. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to the transfers or payments related to capital movements:
(a) inthe event of serious balance of payment and external financial difficulties or a threat thereof, or
(b) if, in extraordinary circumstances, capital payments or transfers cause or threaten to cause serious difficulties in macro-economic management, in particular in monetary or foreign exchange policy.
3. Any measure that is adopted or maintained in accordance with paragraphs 1 or 2 shall:
(a) be applied in a non-discriminatory manner so that no Party receives a less favourable treatment than any other Party to the Pacific Alliance or non-Party;
(b) be consistent with the Articles of Agreement of the International Monetary Fund;
(c) avoid unnecessary damage to commercial, economic and financial interests of the other Party,
(d) not exceed those necessary to deal with the circumstances set out in paragraphs 1 or 2, and
(e) be temporary and be phased out progressively as soon as the circumstances set out in paragraphs 1 or 2 improve;
4. With regard to trade of goods, no provision of this Agreement shall be construed as preventing a Party from adopting measures to restrict importations in order to safeguard its external financial position or balance of payments. These measures which restrict importations must be consistent with the GATT 1994 and the Understanding of the Balance of Payments Provisions of the GATT 1994.
5. With regard to trade in services, no provision in this Agreement shall be construed to prevent a Party from taking restrictive trade measures in order to safeguard its external financial position or balance of payments. These restrictive measures must be consistent with the GATS. 6. A Party that adopts or maintains measures in accordance with paragraphs 1, 2, 4 or 5 shall:
(a) provide prompt notice of the measures adopted or maintained to the other Party, including any modification thereof; and
(b) promptly commence consultations with the other Party to review the measures maintained or adopted by it:
(i) in the case of capital movements, respond to the other Party that makes an enquiry on the measures adopted by it, provided that said enquiry is not otherwise taking place outside of this Agreement; and
(ii) in the case of current account transactions, provided that consultations related to the adopted measures are not carried out before the WTO, a Party shall, if requested to, promptly commence consultations with the other Party.
Chapter 25. FINAL PROVISIONS
Article 25.1. Annexes, Appendices and Footnotes
The annexes, appendices and footnotes of this Agreement shall constitute an integral part of this Agreement.
Article 25.2. Depositary
The Republic of Colombia shall be the Depositary of this Agreement. (1)
Article 25.3. Entry Into Force
1. Each signatory shall notify the Depositary in writing of the completion of its applicable internal procedures required for entry into force of this Agreement. The Depositary shall promptly inform the other signatories, and provide them with the date and copy, of each notification under this paragraph.
2. This Agreement shall enter into force 60 days after the date on which the Depositary has received the last written notification in accordance with paragraph 1.
3. In the event that not all signatories have notified the Depositary in accordance with paragraph 1 within a period of two years after the date of signature of this Agreement, it shall enter into force 60 days after the expiry of this period if the Republic of Singapore and at least two other signatories have notified the Depositary in accordance with paragraph 1 within this period.
4. In the event that this Agreement does not enter into force under paragraph 2 or 3, it shall enter into force 60 days after the date by which the Depositary has received the notifications made by Singapore and at least two other signatories in accordance with paragraph 1.
5. After the date of entry into force of this Agreement under paragraph 3 or 4, for any signatory for which this Agreement has not entered into force, this Agreement shall enter into force 60 days after the date on which the Depositary has received the notification by the said signatory in accordance with paragraph 1.
Article 25.4. Amendments
1. All Parties to the Pacific Alliance and Singapore may agree, in writing, to amend this Agreement.
2. An amendment to this Agreement shall enter into force for all Parties to the Pacific Alliance and Singapore 60 days after the date of receipt by the Depositary of the last written notification informing the completion of the applicable internal procedures, or such other date as the said Parties to the Pacific Alliance and Singapore may agree.
Article 25.5. Amended or Successor International Agreements
If an international agreement or provision therein incorporated into this Agreement is amended, all Parties to the Pacific Alliance and Singapore shall, unless otherwise provided for in this Agreement, consult on whether to amend this Agreement on request by any Party to the Pacific Alliance or Singapore.
Article 25.6. Withdrawal and Termination
1. Any Party to the Pacific Alliance or Singapore may withdraw from this Agreement by providing written notice of withdrawal to the Depositary.
2. A withdrawal shall take effect six months after the date of receipt of the notice by the Depositary unless a different date is agreed by:
(a) Singapore and a Party to the Pacific Alliance, if a Party to the Pacific Alliance withdraws from this Agreement; or
(b) Singapore and all the Parties to the Pacific Alliance, if Singapore or all Parties to the Pacific Alliance withdraw from this Agreement.
3. If a Party to the Pacific Alliance withdraws from this Agreement, this Agreement shall continue to be in force between the remaining Party or Parties to the Pacific Alliance and the Republic of Singapore.
4. This Agreement shall terminate if, pursuant to paragraph 1:
(a) the Republic of Singapore withdraws; or
(b) all Parties to the Pacific Alliance withdraw.
Article 25.7. Accession
1. After the date of entry into force of this Agreement, in accordance with the accession process to be established under Article 22.3.1(g) (Functions of the Free Trade Commission), a new party to the Pacific Alliance Framework Agreement may accede to this Agreement, and negotiations between the acceding party and Singapore or the Parties to the Pacific Alliance shall be limited to the lists of mutual concessions and any procedural aspect necessary for the accession of the acceding party.
2. The Agreement shall enter into force for the acceding party, either:
(a) 60 days after date of receipt by the Depositary of the instrument of accession indicating the acceding party accepts the terms and conditions referred to in paragraph 1; or
(b) 60 days after date of receipt by the Depositary of the acceding party, all Parties to the Pacific Alliance and Singapore's written notifications informing the completion of their applicable legal procedures, whichever is later.
Article 25.8. Reservations
This Agreement shall not be subject to reservations. For greater certainty, reservations in this Article do not mean limitations, exceptions or derogations from the obligations of any Party to the Pacific Alliance or Singapore that are specifically provided for in this Agreement.
Article 25.9. Review
All Parties to the Pacific Alliance and Singapore may, as appropriate, undertake a review of the economic relationship and partnership between them with a view to updating and enhancing this Agreement.
Article 25.10. Authentic Texts
The English and Spanish texts of this Agreement are equally authentic.
Conclusion
In witness whereof the undersigned, being duly authorised by their respective Governments, have signed this Agreement.
DONE at Bahia Malaga, Buenaventura, Republic of Colombia, on January 26, 2022, in the Spanish and English languages, to be held in the custody of the Depositary, which shall provide each Party to the Pacific Alliance and Singapore with duly authenticated copies of this Agreement.
For the Republic of Chile
ANDRES ALLAMAND
Minister of Foreign Affairs
For the Republic of Colombia
MARIA XIMENA LOMBANA VILLALBA
Minister of Commerce, Industry and Tourism
For the United Mexican States
For the Republic of Peru
TATIANA CLOUTHIER CARRILLO
Secretary of Economy
ROBERTO HELBERT SANCHEZ PALOMINO
Minister of Foreign Trade and Tourism
For the Republic of Singapore
GAN KIM YONG
Minister for Trade and Industry
Attachments
Annex I. CHILE - EXPLANATORY NOTES
(a) Article 8.5 (National Treatment) or Article 9.3 (National Treatment);
(b) Article 8.6 (Most-Favoured-Nation Treatment) or Article 9.4 (Most-FavouredNation Treatment);
(c) Article 8.9 (Performance Requirements);
(d) Article 8.10 (Senior Management and Boards of Directors);
(e) Article 9.5 (Local Presence); or
(f) Article 9.6 (Market Access).
2. Each Schedule entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made;
(c) Industry Classification, where referenced, refers to the activity covered by the nonconforming measure, according to the provisional CPC codes as used in the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);
(d) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 8.11.1(a) (Non-Conforming Measures) and Article 9.7.1(a) (Non-Conforming Measures), do not apply to the listed measure(s) as indicated in the introductory notes for Chile’s Schedule;
(e) Level of Government indicates the level of government maintaining the listed measures;