1. The Party taking a bilateral safeguard measure shall, in consultation with the other Party, provide to the other Party mutually agreed trade liberalising compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional customs duties expected to result from the measure. Such consultations shall begin within 30 days of the imposition of the measure.
2. If the Parties are unable to reach agreement on compensation within 30 days after the consultations commence, the exporting Party shall be free to suspend the application of substantially equivalent concessions to the trade of the Party applying the safeguard measure.
3. A Party shall notify the other Party in writing at least 30 days before suspending concessions under paragraph 2.
4. The obligation to provide compensation under paragraph 1 and the right to suspend substantially equivalent concessions under paragraph 2 shall terminate on the date of the termination of the safeguard measure.
Article 8.9. Provisional Bilateral Safeguard Measures
1. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a provisional bilateral safeguard measure, which shall take the form of the measure set out in subparagraph 2 (a) or (b) of Article 8.4 pursuant to a preliminary determination that there is clear evidence that increased imports of an originating good have caused or are threatening to cause serious injury to a domestic industry.
2. The Party shall deliver a written notice to the other Party prior to applying a provisional bilateral safeguard measure. Consultations between the Parties on the application of the provisional bilateral safeguard measure shall be initiated not later than seven days after the provisional bilateral safeguard measure is taken.
3. The duration of the provisional bilateral safeguard measure shall not exceed 180 days. During that period, the pertinent requirements of Article 8.6 shall be met. The duration of the provisional bilateral safeguard measure shall be counted as a part of the period referred to in paragraph 1 of Article 8.5.
4. The customs duty imposed as a result of the provisional bilateral safeguard measure shall be refunded if the subsequent investigation referred to in Article 8.6 does not determine that increased imports of the originating good have caused or threatened to cause serious injury to a domestic industry.
Article 8.10. Language of Communications
Written notice referred to in Article 8.7 and any other communication between the Parties shall be done in the English language.
Article 8.11. Cooperation
The Parties agree to provide cooperation relating to:
(a) enhancing each Party's knowledge and understanding of the other Party's trade remedy laws, policies and practices; and
(b) exchange of information on issues relating to:
(i) anti-dumping, safeguards and subsidies and countervailing measures;
(ii) international issues relating to the WTO Doha Round Rules negotiations; and
(iii) practices by the Parties' competent authorities in anti-dumping, safeguards and subsidies and countervailing investigations.
Chapter 9. Cooperation
Article 9.1. Basic Principles
1. The Parties shall, in accordance with their applicable laws and regulations, promote cooperation under this Agreement for their mutual benefit in order to facilitate trade and investment between them and to promote the well-being of the people of both countries.
2. For this purpose, the Parties shall cooperate and, where necessary and appropriate, encourage and facilitate cooperation between entities such as business communities and academia.
Article 9.2. General Objectives
The framework for cooperative activities established under this Chapter is aimed inter alia at:
(a) enhancing socio-economic development;
(b) strengthening economic competitiveness;
(c) advancing human resources development;
(d) creating new opportunities for trade and investment, fostering innovation and encouraging research and development;
(e) increasing and further developing the level of cooperation activities between the Parties in areas of mutual interest;
(f) recognising the role of the private sector in promoting and building strategic alliances to encourage mutual economic growth and development;
(g) strengthening and building on existing cooperative relationships;
(h) promoting sustainable development; and
(i) improving overall well-being of the people of both countries.
Article 9.3. Scope
1. Cooperation between the Parties under this Chapter will complement the cooperation between the Parties set out in other Chapters of this Agreement.
2. Areas of cooperation may include:
(a) trade and economy;
(b) research, development and innovation;
(c) science and technology;
(d) agriculture and food industry;
(e) sustainable forest management;
(f) mining and mining related industry;
(g) energy;
(h) small and medium enterprises;
(i) intellectual property;
(j) tourism;
(k) education and human capital development;
(l) culture;
(m) environment; and
(n) promotion of investment.
3. Cooperative activities will be agreed between the Parties and may include:
(a) exchanges of people and information;
(b) dialogues, conferences and seminars;
(c) contacts between scientists and academia;
(d) the development of joint research programs; and
(e) encouraging private sector cooperation.
4. Areas of cooperation may be developed through existing agreements and through appropriate implementing arrangements.
Article 9.4. Research, Development and Innovation
Cooperation in innovation, research and development will be focused on cooperative activities in sectors where mutual and complementary interests exist. Where appropriate, they will also promote partnerships in the support of the development of innovative products and services and activities to promote linkage, innovation and technology exchange.
Article 9.5. Environment
1. Recognising the importance of strengthening capacity to promote sustainable development with their three interdependent and mutually reinforcing components: economic growth, social development and environmental protection, the Parties agree to cooperate in the field of environment.
2. The Parties agree that it is inappropriate to enact or use their environmental laws, regulations, policies and practices for trade protectionist purposes; as well as it is inappropriate to relax, or fail to enforce or administer, their environment laws and regulations to encourage trade and investment.
3. The aim of cooperation will be the prevention and/or reduction of contamination and degradation of natural resources and ecosystems and rational use of the latter; through developing and endorsing mutually agreed special programmes and projects dealing, inter alia, with the transfer of knowledge and technology.
4. The intention of the Parties is to cooperate in environmental areas of common global or domestic concern, which may include, among others:
(a) climate change;
(b) biodiversity and conservation of natural resources;
(c) management of hazardous chemicals;
(d) air quality;
(e) water management;
(f) waste management;
(g) marine and coastal ecological conservation and pollution control;
(h) strategic environmental impact assessment;
(i) mining practices and mines rehabilitation; and
(j) improvement of environmental awareness.
5. In order to facilitate communication for purposes of this Article, each Party will designate a contact point no later than six months from the date of entry into force of this Agreement. Each Party will notify the other Party promptly of any change of contact point.
Article 9.6. Cooperation Committee
1. For the purposes of this Chapter, the Parties hereby establish a Cooperation Committee comprising representatives of each Party.
2. The Cooperation Committee shall be coordinated and co-chaired by:
(a) in the case of Chile, the General Directorate of International Economic Affairs, Ministry of Foreign Affairs, or its successor; and
(b) in the case of Malaysia, the Ministry of International Trade and Industry
3. In order to ensure the proper functioning of the Cooperation Committee, each Party will designate a contact point no later than six months from the date of entry into force of this Agreement. Each Party will notify the other Party promptly of any change of contact point.
4. The Cooperation Committee shall meet in or shortly after the first year of entry into force of this Agreement, and thereafter as agreed by the Parties.
5. The Cooperation Committee shall:
(a) establish its operating procedures;
(b) identify and discuss cooperative activities which might be undertaken under this Chapter;
(c) review and monitor the implementation and operation of this Chapter;
(d) exchange information on the field of cooperation;
(e) undertake such other functions within the context of this Chapter to foster cooperation including establishing working groups as the Parties may agree; and
(f) report periodically to the Joint Committee the results of its meetings.
Article 9.7. Costs of Cooperation
1. The implementation of cooperation under this Chapter shall be subject to the availability of funds and the applicable laws and regulations of each Party.
2. Costs of cooperation under this Chapter shall be borne by the Parties within the limits of their own capacities and through their own channels, in an equitable manner to be mutually agreed upon between the Parties.
Article 9.8. Dispute Settlement
Chapter 12 (Dispute Settlement) shall not apply to this Chapter.
Chapter 10. Transparency
Article 10.1. Definition
For the purposes of this Chapter, administrative ruling of general application means an administrative or quasi-judicial ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative proceeding that applies to a particular person or good of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Article 10.2. Contact Points
1. The contact point referred in Annex 10 shall facilitate communications between the Parties on any matter covered by this Agreement.
2. On the request of the other Party, the contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.
Article 10.3. Publication
1. Each Party shall ensure, wherever possible in electronic form, that its laws, regulations, procedures and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure referred to in paragraph 1 that it proposes to adopt; and
(b) provide, where appropriate, interested persons and the other Party a reasonable opportunity to comment on such proposed measures.
Article 10.4. Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify the other Party of any proposed or actual measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect the other Party's interests under this Agreement.
2. On request of the other Party, a Party shall, where possible, provide information and respond to questions pertaining to any actual or proposed measure that the requesting Party considers might materially affect the operation of this Agreement or otherwise substantially affect its interests under this Agreement, regardless of whether the requesting Party has been previously notified of that measure.
3. Any notification, request or information under this Article shall be provided to the other Party through the relevant contact points.
4. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
Article 10.5. Administrative Proceedings
With a view to administering in a consistent, impartial and reasonable manner its measures referred to in Article 10.3, each Party shall ensure that in its administrative proceedings in which these measures are applied to particular persons or goods of the other Party in specific cases that :
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with its domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in question;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding and the public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 10.6. Review and Appeal
1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action that is the subject of the decision.
Chapter 11. Institutional Provisions
Article 11.1. Joint Committee
1. The Parties hereby establish a Joint Committee.
2. The Joint Committee may meet at the level of Ministers or senior officials, as mutually determined by the Parties. The Joint Committee shall be co-chaired by senior government officials of the Parties, unless the Parties agree to convene the meeting at ministerial level. Each Party shall be responsible for the composition of its delegation.
3. The functions of the Joint Committee shall be to:
(a) review the general functioning of this Agreement;
(b) review, consider and, as appropriate, decide on specific matters related to the operation, application and implementation of this Agreement, including matters reported by committees or working groups established under this Agreement;
(c) supervise the work of committees, working groups and contact points established under this Agreement;
(d) seek to resolve differences or disputes that may arise regarding the interpretation or application of this Agreement including matters referred to the Joint Committee pursuant to Article 12.4; and
(e) carry out any other functions as the Parties may agree.
4. The Joint Committee may:
(a) consider and recommend to the Parties any amendment to this Agreement or other modification or rectification to the commitments therein, in accordance to the necessary domestic legal procedures by each Party (7) ;
(b) adopt any decisions and recommendations of the committees if necessary;
(c) as appropriate, issue interpretations of the Agreement;
(d) seek technical advice of relevant experts on matters covered by this Agreement; and
(e) delegate any of its functions to committees and working groups established under this Agreement.
Article 11.2. Meetings of the Joint Committee
1. The Joint Committee shall meet:
(a) within the first year of entry into force of this Agreement; and (b) thereafter at such frequency as the Parties may agree.
2. The Joint Committee shall meet alternately in the territory of each Party, unless the Parties otherwise agree.
3. The Joint Committee shall also meet in special session within 30 days of the request of a Party, with such sessions to be held in the territory of the other Party or at such location as may be agreed by the Parties.
4. All decisions of the Joint Committee shall be taken by mutual agreement.
5. The Joint Committee may adopt its own rules of procedure.
Chapter 12. Dispute Settlement
Article 12.1. Scope and Coverage
Unless otherwise provided in this Agreement, this Chapter shall apply to the avoidance or settlement of disputes between the Parties concerning the interpretation, implementation or application of this Agreement, wherever a Party considers that: