List of Chile
Pursuant to Article 8.11 (Nonconforming Measures), Chile reserves the right to adopt or maintain any measure not in conformity with the obligations set forth below with respect to the following sectors, subsectors or activities:
1. Ownership or control of coastal lands used for agriculture. Such a measure may include a requirement that a majority of each class of shares of a Chilean juridical person seeking to obtain ownership or control of such land be owned by Chilean natural persons or persons residing in the country for 183 days a year or more; where the measure would be inconsistent with Article 8.5 (National Treatment) or Article 8.6 (Most-Favored-Nation Treatment);
2. The sale or disposition of an interest in the capital or assets of an existing state company or governmental entity. Chile reserves the right to prohibit or impose limitations on the ownership of such an interest or asset and on the ability of a foreign investor or its investments to control a State company (17) so created or investments made by it. In comnection with such sale or disposition, Chile may adopt or maintain any measure relating to the nationality of senior executives or members of the board of directors; where the measure is inconsistent with Article 8.5 (National Treatment) or Article 8.10 (Senior Executives and Boards of Directors);
3. Digital telecommunications services of one-way satellite broadcasting, whether direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services; and limited telecommunications services; where the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most-Favored-Nation Treatment), or Article 8.10 (Senior Executives and Boards of Directors);
4. Granting rights or preferences to socially or economically disadvantaged minorities; when the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most-Favored-Nation Treatment) or Article 8.10 (Senior Management and Boards of Directors);
5. Granting rights or preferences to indigenous peoples; when the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most-Favored- Nation Treatment) or Article 8.10 (Senior Management and Boards of Directors);
6. Education (18); where the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most-Favored-Nation Treatment) or Article 8.10 (Senior Management and Boards of Directors);
7. Fishing activities of foreigners, including landing, first landing of processed fish at sea and access to Chilean ports (port privilege); the control of the use of beaches, beach lands, portions of water and seabed for the granting of maritime concessions (19); when the measure is not in conformity with Article 8.5 (National Treatment) or Article 8.6 (Most-Favored-Nation Treatment);
8. Arts and cultural industries, (20) such as audiovisual cooperation agreements; where the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most-Favored-Nation Treatment), or Article 8.10 (Senior Executives and Boards of Directors);
9. The organization and presentation in Chile of concerts and musical performances; the distribution or exhibition of films or videos; and broadcasting intended for the general public, as well as all activities related to radio, television, and cable transmission and satellite and network broadcasting programming services; where the measure is inconsistent with Article 8.5 (National Treatment) or Article 8.6 (Most-Favored-Nation Treatment);
10. Enforcement of public law; the provision of social rehabilitation services, as well as the following services, to the extent that they are social services that are established or maintained in the public interest: income insurance or security, social security services, social welfare, public education, public training, health and child care; where the measure is inconsistent with Article 8.5 (National Treatment), Article 8.6 (Most Favored Nation Treatment) or Article 8.10 (Senior Executives and Boards of Directors); and
11. International land transportation of cargo or passengers in border areas; when the measure is inconsistent with Article 8.5 (National Treatment) or Article 8.6 (Most- Favored-Nation Treatment).
Annex 8.12. Transfers (21) (22)
With respect to the obligations contained in Article 8.12, each Party reserves the following:
Argentina
1. The Argentine Republic reserves the right to adopt or maintain foreign exchange measures in accordance with its National Constitution (Article 75 paragraph 11). It also reserves the right to adopt or maintain measures adopted or maintained by the Central Bank of the Argentine Republic in accordance with its Charter (Law No. 24,144) and other legal provisions, in order to promote monetary stability, financial stability, employment and economic development with social equity, to regulate the amount of money, interest rates and credit, to implement the exchange policy in accordance with the legislation enacted by the Honorable Congress of the Nation, issuing for such purpose the regulatory rules of the exchange regime and exercising the oversight required for compliance therewith. These measures include, among others, establishing requirements that restrict or limit current payments and transfers from or to the Argentine Republic, establishing requirements for access to the foreign exchange market.
2. In applying the measures under this Annex, the Republic of Argentina, as provided for in its legislation, may not discriminate between the Republic of Chile and any third country with respect to transactions of the same nature.
Chile
1. The Republic of Chile reserves the right of the Central Bank of Chile to maintain or adopt measures in accordance with its Constitutional Organic Law (Law 18,840) or other legal norms to ensure the stability of the currency and the normal functioning of internal and external payments, granting it the power to regulate the amount of money and credit in circulation, the execution of credit and international exchange operations, as well as to dictate norms in monetary, credit, financial and international exchange matters. These measures include, among others, the establishment of requirements that restrict or limit current payments and transfers to or from Chile, as well as the operations related to them, such as, for example, the establishment of requirements that the deposits, investments or credits originating or destined abroad are subject to the obligation to maintain a reserve requirement.
2. Notwithstanding paragraph 1, the requirement to maintain a reserve requirement pursuant to Article 49 No. 2 of Law 18,840 may not exceed thirty percent (30%) of the amount transferred and may not be imposed for a period exceeding two (2) years.
3. In applying measures under this Annex, Chile, as provided in its legislation, may not discriminate between Argentina and any third country with respect to transactions of the same nature.
Annex 8.12 bis. Decree Law 600 Chile (23)
1. Decree Law 600 (1974), Foreign Investment Statute, is a voluntary and special investment regime for Chile.
2. As an alternative to the ordinary regime for the entry of capital into Chile, in order to invest in Chile, potential investors may apply to the Foreign Investment Committee to be subject to the regime established by Decree Law 600.
3. The obligations and commitments contained in this Chapter do not apply to Decree Law 600, Foreign Investment Statute, to Law 18,657 on Foreign Capital Investment Funds, to the continuation or prompt renewal of such laws and amendments thereto or to any special and/or voluntary investment regime that may be adopted in the future by Chile.
4. For greater certainty, the Chilean Foreign Investment Committee has the right to reject investment requests through Decree Law 600 and Law 18,657. In addition, the Chilean Foreign Investment Committee has the right to regulate the terms and conditions to which foreign investment made pursuant to Decree Law 600 and Law 18,657 will be subject.
5. For greater certainty, once the foreign investment application submitted by an investor under Decree Law 600, its amendments, continuation or prompt renewal, or under any special and/or voluntary investment regime that may be adopted in the future by Chile, has been accepted by the Foreign Investment Committee of Chile through the execution of a foreign investment contract, the disciplines set forth in this Chapter shall be applicable to the investment materialized under the respective contract.
6. For greater certainty, nothing in paragraphs 1 through 4 of this Annex shall be claimable under the provisions of Section B.
Annex 8.42. SERVICE OF DOCUMENTS ON A PARTY UNDER SECTION B
1. Delivery of documents shall be made at the place specified by each Party. Each Party shall immediately notify and make public any change to the place specified in this Annex.
2. The place of filing of the notice of intent to arbitrate and other documents relating to the resolution of disputes related to Section B shall be:
For Argentina:
General Directorate of Legal Counsel
Ministry of Foreign Affairs and Worship of the Argentine Republic Esmeralda 1212,
Autonomous City of Buenos Aires, Republic of Argentina; and
Procuración del Tesoro de la Nación
Posadas 1641,
Autonomous City of Buenos Aires, Argentine Republic,
or its successor.
For Chile:
Legal Department of the Directorate General of International Economic Relations International Economic Relations
Ministry of Foreign Affairs of the Republic of Chile
Teatinos N° 180
Santiago, Chile,
or its successor.
Chapter 9. TRADE IN SERVICES
Article 9.1. Definitions
For the purposes of this Chapter:
trade in services means the supply of a service:
(a) From the territory of one Party to the territory of the other Party;
(b) In the territory of a Party, to a service consumer of the other Party;
(c) By a service supplier of a Party through commercial presence in the territory of the other Party; or
(d) By a service supplier of a Party through the presence of natural persons of a Party in the territory of the other Party.
consumer of services means any person who receives or uses a service;
legal entity means any legal entity duly organized or otherwise organized under applicable law, whether or not for profit and whether privately or publicly owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
commercial presence means any type of commercial or professional establishment, organized through, among other means, the following:
(a) The incorporation, acquisition or maintenance of a legal entity; or
(b) The establishment or maintenance of branches or representative offices located in the territory of the other Party for the purpose of supplying a service.
service supplier of a Party means a person of that Party that intends to supply or does supply a service. Where the service is not supplied by a juridical person directly but through other forms of commercial presence within the territory where the service is supplied, for example a branch or a representative office, the treatment accorded to service suppliers under the Agreement shall be accorded to the juridical person through such commercial presence;
services include any service in any sector, except services provided in the exercise of governmental authority;
aircraft repair and maintenance services means those activities when performed on an aircraft or part thereof while the aircraft is out of service and does not include so-called line maintenance;
computer reservation system services (hereinafter referred to as "CRS") means services provided through computerized systems that contain information about air carriers' schedules, seat availability, fares and pricing rules and through which reservations can be made or tickets can be issued;
professional services means services the provision of which requires specialized higher education (1) or equivalent training or experience and the exercise of which is authorized or restricted by a Party, but does not include services provided by persons engaged in a trade or to crew members of merchant ships and aircraft;
service supplied in the exercise of governmental authority means any service that is supplied neither on a commercial basis, nor in competition with one or more service suppliers;
sale and marketing of air transport services means the opportunities for the air carrier concerned to freely sell and market its air transport services, including all aspects of marketing, such as market research, advertising and distribution. These activities do not include the pricing of air transport services or the applicable conditions.
Article 9.2. Scope of Application
1. This Chapter applies to measures adopted or maintained by a Party affecting trade in services supplied by service suppliers of the other Party. Such measures include those affecting:
(a) The production, distribution, marketing, sale and supply of a service;
(b) The purchase or use of, or payment for, a service;
(c) Access to and use of distribution and transportation systems, or telecommunications networks and services related to the supply of a service;
(d) The presence, including commercial presence, in the territory of a Party of a service supplier of the other Party, and
(e) The request for a bond or other form of financial guarantee, as a condition for the provision of a service.
2. For the purposes of this Chapter, measures adopted or maintained by a Party means measures adopted or maintained by:
(a) Governments and authorities at central or federal, regional, provincial or state or local level, and
(b) Non-governmental organizations in the exercise of powers delegated to them by governments and authorities at the central or federal, regional, provincial or state or local level.
3. In compliance with its obligations and commitments under this Chapter, each Party shall take the necessary measures within its power to ensure compliance by state, provincial, or municipal governments and authorities and by nongovernmental institutions existing in its territory.
4. This Chapter does not apply to:
(a) Financial services, as defined in Article XII of the Fifty-third Additional Protocol to ACE N°35;
(b) Air services, including domestic and international air transport services, scheduled and non-scheduled, as well as related air services support
(c) services, except:
(i) aircraft repair and maintenance services while the aircraft is out of service, excluding so-called line maintenance;
(ii) the sale and marketing of air transportation services, and
(iii) the SRIs.
(d) Public procurement;
(e) Subsidies or grants provided by a Party or a state enterprise including government supported loans, guarantees and insurance; and
Services supplied in the exercise of governmental authority in the territory of each Party.
5. This Chapter does not impose any obligation on a Party with respect to a natural person of the other Party who seeks to enter its labor market or who has permanent employment in its territory, nor does it confer any right on that natural person with respect to such access or employment.
6. For greater certainty, nothing in this Chapter shall be construed to impose any obligation on a Party with respect to its immigration measures.
Article 9.3. National Treatment
1. In the sectors inscribed in its Schedule of Specific Commitments in Annex 9.6. and subject to such conditions and qualifications as may be specified therein, each Party shall accord to services and service suppliers of the other Party, with respect to all measures affecting the supply of services, treatment no less favorable than that it accords to its own like services or service suppliers.
2. Specific commitments under this Article do not require a Party to compensate for inherent competitive disadvantages resulting from the foreign character of the relevant services or service suppliers.
3. Each Party may comply with the requirements of paragraph 1 by granting to services and service suppliers of the other Party treatment formally identical or formally different from that which it accords to its own like services and service suppliers.
4. Formally identical or formally different treatment shall be considered less favorable if it modifies the conditions of competition in favor of services or service suppliers of the Party as compared to like services or service suppliers of the other Party.
Article 9.4. Market Access
1. With respect to market access through the modes of supply identified in Article 9.1, each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that provided for in accordance with that specified in its Schedule of Specific Commitments in Annex 9.6.
2. In sectors where market access commitments are undertaken, the measures that Parties may not maintain or adopt, either on the basis of a regional subdivision or on the basis of their entire territory, unless otherwise specified in their Schedule, are defined as follows:
(a) Measures that impose limitations:
(i) to the number of service providers, either in the form of numerical quotas, monopolies, exclusive service providers or by requiring an economic needs test;
(ii) to the total value of assets or service transactions in the form of numerical quotas or by requiring an economic needs test;
(iii) the total number of service operations or the total amount of service output, expressed in designated numerical units, in the form of quotas or by requiring an economic needs test (2), or
(iv) the total number of natural persons that may be employed ina given service sector or that a service supplier may employ and who are necessary for the supply of a specific service and are directly related to it, in the form of numerical quotas or through the tequirement of an economic needs test.
(b) Measures restricting or prescribing the specific types of legal entity or joint venture through which a service supplier may supply a service, or
(c) Limitations on foreign equity participation as a maximum percentage limit on foreign share ownership or as the total value of individual or aggregate foreign investments.
Article 9.5. Additional Commitments
The Parties may negotiate commitments with respect to measures affecting trade in services, but not subject to scheduling, under Articles 9.3 and 9.4, including those relating to qualifications, standards, or licensing issues. Such commitments shall be inscribed in the Parties' schedules of specific commitments.
Article 9.6. Schedules of Specific Commitments
1. The Schedule of Specific Commitments in Annex 9.6 lists the sectors, sub-sectors and activities for which each Party undertakes commitments and indicates the terms, limitations and conditions for market access and national treatment.
2. Each Party may also specify in the Schedule additional commitments in accordance with Article 9.5. Where appropriate, each Party shall specify deadlines for the implementation of commitments, as well as the date of entry into force of such commitments.
3. Articles 9.3 and 9.4 shall not apply to:
(a) Sectors, sub-sectors, activities, or measures that are not specified in the Schedule of Specific Commitments;
(b) The measures specified in its Schedule of Specific Commitments that are inconsistent with Article 9.3 or Article 9.4. 4. Measures that are inconsistent with both Article 9.3 and Article 9.4 should be listed in the column relating to Article 9.3. In this case, the entry shall be considered as a condition or restriction also to Article 9.4.
Article 9.7. Transparency
1. Each Party shall establish or maintain appropriate mechanisms to respond to inquiries from interested persons concerning its regulations relating to matters covered by this Chapter, in accordance with its laws and regulations on transparency.
2. In the event that a Party makes a modification to any existing measure, as set out in its Schedule of Specific Commitments in Annex 9.6, that Party shall notify the other Party, as soon as practicable, of such modification.
3. In the event that a Party adopts any measure after the entry into force of this Chapter with respect to sectors, sub-sectors or activities as set out in its Schedule of Specific Commitments in Annex 9.6, such Party shall, to the extent possible, notify the other Party of such measure.
Article 9.8. National Regulations
1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Where a Party requires authorization for the supply of a service, the competent authorities of that Party:
(a) Identify in the case of an incomplete application, at the request of the applicant and where practicable, the additional information required to complete the application and provide an opportunity to correct minor errors or omissions in the application;
(b) They shall inform the applicant within a reasonable time after the submission of an application that is deemed complete in accordance with their laws and regulations, of the decision regarding the application;
(c) They shall establish, as far as practicable, indicative deadlines for the processing of an application;
(d) They shall provide, at the request of the applicant and without undue delay, information concerning the status of the application;
(e) They shall inform the applicant, in the case of a denied application and to the extent practicable, of the reasons for the denial, either directly or at the request of the applicant;
(f) Accept, to the extent practicable and in accordance with their legal system, copies of authenticated documents in lieu of original documents; and
(g) Ensure that the authorization, once granted, takes effect without undue delay, subject to the applicable terms and conditions.
3. In order to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, each Party shall endeavor to ensure that such measures:
(a) Based on objective and transparent criteria, such as competence and capacity to provide the service;
(b) Are not more burdensome than necessary to ensure quality of service, and
(c) Do not in themselves constitute a restriction on the provision of the service, in the case of licensing procedures.
4. Each Party shall ensure that any fee charged by the competent authority to authorize the supply of a service is reasonable, transparent and does not in itself restrict the supply of that service.
5. If licensing or qualification requirements include an assessment, each Party shall ensure that:
(a) The evaluation is scheduled at reasonable intervals, and
(b) A reasonable period of time is provided to allow interested persons to submit a request to participate in the evaluation.
6. Each Party shall ensure that procedures are in place to verify the competencies of professionals of the other Party.
7. Each Party shall, to the extent practicable, ensure that information on licensing and qualification requirements and procedures includes the following:
(a) If the renewal of the license or qualifications is required for the provision of a service;
(b) The contact details of the competent authority;
(c) The requirements, procedures and costs applicable to the granting of licenses and certificates of competence; and
(d) The procedures relating to appeals or reviews of applications, if any.