(i) in the case of capital movements, respond promptly to the other Party requesting consultations related to the measures adopted by it, provided that such consultations were not taking place outside the framework of this Agreement.
(ii) in the case of current account restrictions, if the consultations related to the measures adopted by it are not carried out within the framework of the WTO Agreement, the Party, if requested, will promptly initiate consultations with the other Party.
Article 19.4. Tax Measures
1. For the purposes of this Article:
designated authorities means:
(a) In the case of Chile, the Undersecretary of Finance, and
(b) In the case of Uruguay, the Minister of Economy and Finance;
tax agreement means an agreement to avoid double taxation or other international agreement or arrangement in tax matters;
Taxes and tax measures include consumption taxes, but do not include:
(a) Any duty or charge of any kind applied to, or in connection with the importation of a good, and any form of surcharge or surcharge applied in connection with such importation, or
(b) Any duty or other charge related to importation proportional to the cost of the services rendered, or
(c) Any anti-dumping duty or countervailing measure .
2. Except for the provisions of this Article, nothing of the provisions of this Agreement shall apply to tax measures.
3. Nothing in this Agreement shall affect the rights and obligations of any of the Parties in accordance with any tax agreement. In the event of any incompatibility between this Agreement and any of said tax agreements, that agreement will prevail to the extent of the inconsistency.
4. In the case of a tax agreement between the Parties, if any difference arises regarding the existence of any incompatibility between this Agreement and the tax agreement, the difference will be remitted to the authorities designated by the Parties. The designated authorities of the Parties will have six months from the date of remittance of the difference to make a determination on the existence and degree of any incompatibility. If those designated authorities agree, the term may be extended up to 12 months from the date of remittance of the difference. No procedure related to the measure that originated the difference may be initiated in accordance with Chapter 18 (Settlement of Disputes) until the expiration of the six-month period, or any other period that has been agreed by the designated authorities. An arbitral tribunal established to hear a dispute related to a tax measure shall accept as binding the determination made by the designated authorities of the Parties pursuant to this paragraph.
5. Notwithstanding paragraph 3:
(a) Article 2.1 (National Treatment) and those other provisions in this Agreement necessary to make that Article effective, shall apply to tax measures to the same extent as Article III of the GATT 1994, and
(b) Article 2.3 (Export Taxes) will apply to tax measures.
6. Subject to paragraph 3:
(a) Article 7.3 (National Treatment) shall apply to tax measures on income, capital gains, on the taxable capital of companies or on the value of an investment or property (2) (but not on the transfer of this investment or ownership), which are related to the purchase or consumption of specific services, except that nothing in this subparagraph shall prevent a Party from conditioning the receipt or continuing to receive an advantage related to the purchase or consumption of specific services on the requirements to supply service in your territory, and
(b) Article 7.3 (National Treatment) and Article 7.4 (Most Favored Nation Treatment) will apply to all the measures tax, distinct from those on income, capital gains, on taxable capital of companies, on the value of an investment or property (3) (but not on the transfer of that investment or property), or taxes on wealth, inheritance, donations and transfers with leap of generations;
but nothing of the provisions of the Articles referred to in subparagraphs (a) and (b) shall apply to:
(c) Any most favored nation obligation with respect to an advantage granted by a Party pursuant to a tax agreement;
(d) A non-conforming provision of any existing tax measure ;
(e) The continuation or prompt renewal of a non-conforming provision of any existing tax measure ;
(f) A modification of a non-conforming provision of any existing tax measure, as long as such modification does not reduce its degree of conformity, at the time of the amendment, with any of those Articles; (4)
(g) The adoption or application of any new tax measure aimed at ensuring the application or collection of taxes in an equitable or effective manner, including any tax measure that differentiates between people based on their place of residence for tax purposes, provided that the tax measure does not arbitrarily discriminate between persons, goods or services of the Parties; (5)
(h) a provision that conditions the receipt or continued receipt of an advantage relating to contributions, or income from, a pension fund, pension plan, or other systems to provide pension, retirement or similar benefits, on a requirement in which the Party maintains continuous jurisdiction, regulation or supervision over that fund, plan, or any other agreement.
Section Section B: General Provisions
Article 19.5. Disclosure of Information
Nothing in this Agreement shall be construed to oblige a Party to provide or allow access to information the disclosure of which would be contrary to its legal system or could impede the application of the law, or which would otherwise be contrary. to the public interest, or that could harm the legitimate commercial interests of certain companies, public or private.
Article 19.6. Traditional Knowledge and Traditional Cultural Expressions
Subject to the international obligations of each Party, each Party may establish appropriate measures to respect, preserve and promote traditional knowledge and traditional cultural expressions.
Chapter 20. FINAL PROVISIONS
Article 20.1. Annexes, Appendices and Footnotes
The annexes, appendices, and footnotes to this Agreement constitute an integral part thereof.
Article 20.2. Entry Into Force and Denunciation
1. The entry into force of this Agreement will be subject to compliance with the internal legal procedures of each Party.
2. This Agreement will enter into force 90 calendar days from the day following the day on which the General Secretariat of ALADI notifies the Parties of having received the last communication informing the fulfillment of the requirements established in domestic legislation.
3. Either Party may denounce this Agreement by written notification to the other Party. This Agreement will cease to be effective 180 days after the date of such notification.
4. The ALADI General Secretariat will be the depository of this Agreement, of which it will send duly authenticated copies to the Parties .
Article 20.. Amendments
1. The Parties may adopt in writing any amendment to this Agreement.
2. Any amendment to this Agreement shall enter into force and form part of it, in accordance with the procedure established in Article 20.2.2.
Article 20.4. Amendments to the WTO Agreement
If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended at the multilateral level, the Parties will hold consultations with a view to evaluating the advisability of amending the corresponding provision of this Agreement.
Article 20.5. Accession
1.In compliance with the provisions of the 1980 Montevideo Treaty, this Agreement is open to accession, through prior negotiation, by the other member countries of ALADI.
2.The accession will be formalized once its terms have been negotiated between the Parties and the adherent country, by means of the celebration of an additional protocol to this Agreement that will enter into force 90 days after being deposited with the General Secretariat of ALADI.
Article 20.6. Convergence
The Parties shall promote the convergence of this Agreement with other integration agreements of the Latin American countries, in accordance with the mechanisms established in the 1980 Montevideo Treaty.
Conclusion
Signed in Montevideo, on October 4, 2016, in duplicate, in Spanish.
FOR THE GOVERNMENT OF THE REPUBLIC OF CHILE
FOR THE EASTERN REPUBLIC OF URUGUAY