Chapter 12. ENVIRONMENT
Article 12.1. Definitions
For the purposes of this Chapter:
1. Environmental legislation is understood as any law or regulation of one of the Parties, or provisions thereof, whose main purpose is the protection of the environment or the prevention of any danger to human life or health, through
(a) The prevention, reduction or control of a leak, discharge or emission of environmental pollutants;
(b) The control of chemical substances or products, other substances, materials or wastes that are toxic or dangerous to the environment, and the dissemination of information relating thereto; or
(c) The protection or conservation of wild flora and fauna, including endangered species, their habitat and natural areas under special protection, in the territory of the Party
2. Environmental legislation as defined in paragraph 1 does not include laws or regulations or provisions thereof, which are directly related to occupational health or safety.
3. For greater certainty, the definition of environmental legislation also does not include laws or regulations, or provisions thereof, whose primary purpose is the management of the commercial collection or exploitation of natural resources, or the collection or extraction of natural resources for subsistence purposes or that is carried out by indigenous peoples.
4. For the purposes of the definition of environmental legislation, the main purpose of a given legal or regulatory provision shall be determined by reference to its main purpose and not by reference to the law or regulation of which it is a part.
5. It is understood by law or regulation:
(a) In the case of Chile, it means an act of the National Congress or a decree of the President of the Republic, promulgated as indicated by the Political Constitution of the Republic of Chile, and
(b) In the case of Uruguay, it means a national law of the General Assembly of the Legislative Power or a Decree of the Executive Power.
Article 12.2. Objectives
The objectives of this Chapter are:
(a) Promote mutually supportive trade and environmental policies
(b) Promote high levels of environmental protection compatible with the objective of sustainable and equitable development;
(c) Effective enforcement of environmental legislation;
(d) Building the capacity of Parties to address trade-related environmental issues, including through cooperation; and
(e) To promote the establishment of non-discriminatory measures and the elimination of distortions to or disguised restrictions on trade or investment between the Parties.
Article 12.3. General Commitments
1. The Parties recognize the sovereign right of each Party to establish its own levels of domestic environmental protection and its own environmental priorities, and to establish, adopt, or modify its environmental laws and policies accordingly.
2. Each Party shall seek to ensure that its environmental laws and policies provide for and encourage high levels of environmental protection and continue to improve their respective levels of environmental protection.
3. No Party shall fail to effectively enforce its environmental laws through a sustained or recurring course of action or inaction in a manner that affects trade or investment between the Parties after the date of entry into force of this Agreement.
4. The Parties recognize that each retains the right to exercise discretion with respect to investigative, court, regulatory, and enforcement matters, and to make decisions regarding the allocation of resources for oversight of other environmental matters that have been assigned a higher priority. Accordingly, the Parties understand that a Party is in compliance with paragraph 3 where a course of action or inaction reflects a reasonable exercise of such discretion or results from a good faith decision to allocate resources in accordance with its environmental enforcement priorities.
5. The Parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection afforded by their environmental laws. Accordingly, neither Party shall waive, repeal, or offer to waive or abrogate its environmental law ina manner that weakens or reduces the protection afforded by that law for the purpose of encouraging trade or investment between the Parties.
6. The Parties shall ensure that their environmental laws and policies are not established or applied for protectionist trade purposes.
7. Nothing in this Chapter shall be construed to empower the authorities of a Party to conduct environmental enforcement activities in the territory of the other Party.
Article 12.4. Multilateral Environmental Agreements
The Parties recognize that the multilateral environmental agreements to which they are party play an important role, at the global and national levels, in protecting the environment and that their respective implementation is critical to achieving the environmental objectives of those agreements. Accordingly, each Party affirms its commitment to implement the multilateral environmental agreements to which it is a party.
Article 12.5. Procedural Issues
1. Each Party shall promote public awareness of environmental laws and policies, including enforcement and compliance procedures, by ensuring that relevant information is available to the public.
2. Each Party shall ensure that an interested person residing or established in its territory may request that the Party's competent authorities investigate alleged violations of its environmental law, and that the competent authorities give due consideration to such requests, in accordance with the Party's legal system.
3. Each Party shall ensure that judicial or administrative proceedings for the enforcement of its environmental laws are available in accordance with its legal system and that such proceedings are fair, equitable, transparent, and comply with due process. Any hearing in such proceedings shall be open to the public, except where the administration of justice requires otherwise in accordance with its legal system.
4. Each Party shall ensure that persons with a recognized interest in a particular matter under its legal system have appropriate access to the procedures referred to in paragraph 3.
5. Each Party shall provide appropriate sanctions and remedies for violations of its environmental laws. Such sanctions or remedies may include the right to bring an action directly against the violator to seek redress for damages or injunctive relief, or the right to seek government action.
6. Each Party shall ensure that due consideration is given to relevant factors in establishing the sanctions or remedies referred to in paragraph 5. These factors may include the nature and severity of the violation, the damage to environment and any economic benefit that the violator derived from the violation.
Article 12.6. Corporate Social Responsibility
Each Party shall encourage companies, operating within its territory or jurisdiction, to voluntarily incorporate into their internal policies sound principles of corporate social responsibility that are related to the environment, consistent with internationally recognized guidelines and directives that have been endorsed or are supported by that Party.
Article 12.7. Opportunities for Public Participation
1. Each Party shall seek to address requests for information regarding the implementation of this Chapter.
2. Each Party shall make its best efforts to respond favorably to requests for consultations made by persons or organizations in its territory in connection with the implementation of this Chapter.
3. Each Party shall make use of existing consultative mechanisms or establish new mechanisms, such as national advisory committees, to seek views on matters relating to the implementation of this Chapter. These mechanisms may include persons with relevant expertise, as appropriate, including expertise in business, conservation and natural resource management, or other environmental matters.
Article 12.8. Public Communications
1. Each Party shall receive and consider written communications from interested persons of that Party regarding the implementation of this Chapter. Each Party shall respond to such communications in a timely manner in writing and in accordance with its domestic procedures, and shall make available to the public the results of the consideration of the communication, in accordance with its legal system.
2. Each Party shall make publicly available, in an accessible manner, its procedures for the receipt and consideration of written communications, for example, through publication on an appropriate public website.
3. The Parties may provide in such procedures, as a condition of admissibility, that the communication
(a) Clearly identify the person presenting it;
(b) Provide enough information to allow for a review of it, including any documentary evidence on which it may be based;
(c) Explain how, and to what extent, the issue raised affects trade or investment between the Parties, and
(d) Indicate whether the matter has been previously communicated in writing to the Party's relevant authorities and the Party's response, if any.
4. Each Party shall notify the other Party of the contact point responsible for receiving and responding to communications, within 180 days of the date of entry into force of this Agreement.
5. If a communication claims that a Party is not effectively implementing its environmental law, following the written response to that Party's communication, either Party may request that the Environment Committee established under Article 12.10.4 discuss that communication and the written response, with a view to better understanding the issue raised in the communication and, as appropriate, consider whether the issue could benefit from cooperative activities.
6. If a communication raises questions that are the subject of judicial or administrative proceedings at the time of its receipt, the Party shall respond by referring exclusively to the judicial or administrative proceeding in progress, providing the information identifying the proceeding.
Article 12.9. Voluntary Mechanisms for Improving Environmental Performance
1. The Parties recognize that flexible and voluntary mechanisms, such as voluntary audits and reporting, market-based incentives, voluntary exchange of information and expertise, and public-private partnerships, can contribute to the achievement and maintenance of high levels of environmental protection and complement domestic regulatory measures. The Parties also recognize that such mechanisms should be designed to maximize environmental benefits and avoid creating unnecessary barriers to trade.
2. Under paragraph 1, if private sector entities or non-governmental organizations develop voluntary mechanisms for the promotion of products based on environmental qualities, each Party should encourage those entities and organizations to develop voluntary mechanisms that, inter alia
(a) Be truthful, do not mislead the consumer and take into account scientific and technical information;
(b) If applicable and available, they are based on relevant international standards, guidelines or recommendations, and best practices;
(c) Promote competition and innovation, and
(d) Do not treat a product less favourably on the basis of its origin.
Article 12.10. Institutional Provisions
1. In order to facilitate communication between the Parties for purposes of this Chapter, each Party shall designate a contact point within 180 days of the date of entry into force of this Agreement. Each Party shall notify the other Party, as soon as possible, of any changes to the contact point.
2. The Parties may exchange information by any means of communication, including the Internet and videoconferencing.
3. The contact points shall report to the Commission on the implementation of this Chapter, if necessary. 4 The Parties hereby establish the Environment Committee, which may meet to discuss matters of mutual interest, including potential areas of cooperation, to propose aspects of the implementation of this Chapter, and to address any issues that may arise between the Parties. The Environment Committee shall be composed of high-level government representatives, or their designees, responsible for environmental and trade matters.
Article 12.11. Environmental Cooperation
1. The Parties recognize the importance of cooperation as a mechanism to implement this Chapter, enhance its benefits, and strengthen the joint and individual capabilities of the Parties to protect the environment and promote sustainable development, while strengthening their trade and investment relations.
2. Where possible and appropriate, the Parties shall seek to complement and make use of their existing cooperation mechanisms and take into consideration the relevant work of regional and international organizations.
3. Cooperation may take place through various means, such as dialogues, workshops, seminars, conferences, collaborative programs and projects, technical assistance to promote and facilitate cooperation and training, exchange of best practices in policies and procedures, and exchange of experts.
4. Environmental cooperation will be carried out through the design and approval of special programs, which may include areas such as
(a) Sustainable development objectives;
(b) Access to information, participation and justice in environmental matters;
(c) Climate change;
(d) Biodiversity, conservation of natural resources and protected areas
(e) Management of chemical substances and waste;
(f) Air quality;
(g) Water management and quality;
(h) Conservation of marine and coastal edge biodiversity and pollution control
(i) Environmental evaluation and inspection;
(j) Environmental education;
(k) Renewable energy and energy efficiency, and rc) Other areas as agreed by the Parties.
5. Such cooperation will take into account the environmental priorities and needs of each Party, as well as the resources available. The financing of cooperation activities will be decided by the Parties on a case-by-case basis.
6. The Parties shall make available to the public the information regarding the projects and activities they carry out in accordance with this Chapter.
Article 12.12. Environmental Consultations
1. The Parties shall at all times seek to agree on the interpretation and application of the provisions of this Chapter, and shall make every effort through dialogue, consultation, exchange of information, and, where appropriate, cooperation, to address any matter that could affect the operation of this Chapter.
2. A Party may request consultations with the other Party regarding any matter arising under this Chapter by delivering a written request to the other Party's contact point.
3. The Parties shall promptly begin consultations upon delivery of the request referred to in paragraph 2. The requesting Party shall provide specific and sufficient information in its request for the other Party to respond, including identification of the matter at issue and an indication of the legal basis for the request.
4 Unless the Parties agree otherwise, they shall enter into consultations within 90 days of the date of receipt of the request referred to in paragraph 2.
5. The Parties shall make every effort to reach a mutually satisfactory resolution of the matter, which may include appropriate cooperative activities. The Parties may seek advice or assistance from any person or body they deem appropriate in order to fully examine the matter at hand.
6. If the Parties are unable to resolve the matter through consultation, either Party may request that the Environmental Committee established under Article 12.10.4 be convened to consider the matter, by delivering a written request to the other Party.
7. The Environmental Committee shall be convened promptly and shall seek to resolve the matter through consultation with governmental or external experts of the Parties, as appropriate, and through such procedures as good offices, conciliation or mediation.
8. The Environmental Committee may, where appropriate, provide information to the Commission regarding any consultations held on the matter.
9. If, upon convening the Environmental Committee, the Parties are unable to resolve the matter through direct environmental consultations, the consulting Party may refer the matter to the competent Ministers of the consulting Party, who shall seek to resolve the matter.
10. Consultations under this Article shall be confidential and may be conducted in person or by any available technological means, as agreed by the Parties. If consultations are held in person, they shall take place in the capital of the Party consulted, unless the Parties agree otherwise.
11. The Parties will produce a consensus report reflecting the outcome of the consultations held and commit to implement the conclusions and recommendations of the report as soon as possible.
Article 12.13. Non-application of Dispute Settlement
No Party may have recourse to the dispute settlement mechanism under Chapter 18 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 13. COOPERATION
Article 13.1. Objectives
1. The Parties agree to establish a framework for cooperative activities as a means of expanding and extending the benefits of this Agreement.
2. The Parties, recognizing the historical accumulation of bilateral technical cooperation, establish that this Chapter does not replace the existing technical cooperation mechanisms between them, but rather strengthens the global vision of the bilateral relationship, focusing on the particularities of this Agreement.
3. The Parties, in turn, recognize the important role of the business sector and academia in promoting and fostering mutual economic growth and development.
4. In consideration of the above, the Parties shall establish close cooperation aimed at, among other things
(a) Strengthen and expand existing bilateral cooperation relations;
(b) To encourage the creation of new opportunities for trade and investment, the promotion of competitiveness and innovation, with the participation of the State, the business sector and academia;
(c) To strengthen and expand cooperation, collaboration and mutual exchange in the cultural and educational fields, and
(d) To deepen and increase the level of cooperative activities between the Parties in areas of mutual interest.
Article 13.2. Scope
1. The Parties reaffirm the importance of all forms of cooperation, including, but not limited to, the areas listed in Article 13.3.2.
2. The areas of cooperation and the initiatives that are agreed to be carried out within the framework of this Agreement will be developed by the Parties in writing.
3. Cooperation between the Parties shall contribute to the fulfillment of the objectives of this Agreement, through the identification and development of innovative cooperation programs aimed at adding value to their relations.
4. The cooperative activities will be agreed between the Parties and may include, among others, those listed in Article 13.4.
5. Cooperation between the Parties in this Chapter shall complement the cooperation and cooperative activities in other Chapters of this Agreement.
Article 13.3. Areas of Cooperation and Capacity Building
1. The Parties may carry out and strengthen areas of cooperation and capacity building to assist in
(a) The implementation of the provisions of this Agreement;
(b) The enhancement of each Party's ability to take advantage of the economic opportunities created by this Agreement; and
(c) The promotion and facilitation of trade and investment of the Parties
2. The areas of cooperation and capacity building under this Chapter shall include, but not be limited to
(a) Economic development;
(b) Innovation and research;
(c) Agriculture, the food industry and forestry
(d) Mining and industry;
(e) The energy;
(f) Small and medium enterprises;
(g) Tourism;
(h) Education and human capital development;
(i) Culture;
(j) Gender issues;
(k) Climate change;
(l) Health care, and
(m) The aspects of development.
Article 13.4. Cooperation Activities
In pursuit of the objectives set forth in Article 13.1, the Parties shall encourage and facilitate, as appropriate, the following cooperative activities, including, but not limited to
(a) The development of those within the framework of bilateral cooperation agreements or conventions;
(b) The facilitation of the exchange of experts, information, documentation and experiences
(c) The promotion of cooperation in regional and multilateral forums;
(d) The orientation of cooperation activities;
(e) The exchange of technical assistance, and
(f) The organization of dialogues, conferences, seminars and training programs.
Article 13.5. Cooperation Committee
1. The Parties hereby establish a Cooperation Committee (hereinafter referred to as "the Committee"), composed of representatives of each Party.
2. For the purposes of this Article, the Committee shall be coordinated:
(a) In the case of Chile, by the Directorate General of International Economic Relations, or its successor, and
(b) In the case of Uruguay, by the Ministry of Foreign Affairs through the General Directorate of International Cooperation, or its successor.
3. In order to facilitate communication and ensure the proper functioning of the Committee, the Parties shall designate a contact point no later than three (3) months after the date of entry into force of this Agreement.
4. The functions of the Committee shall be:
(a) Facilitate the exchange of information between the Parties in areas including, but not limited to, experiences and lessons learned through cooperation and capacity building activities carried out under the terms of this Agreement;
(b) Discuss and consider issues or proposals for future cooperation and capacity building activities;
(c) Initiate and carry out collaboration, as appropriate, to improve donor coordination and explore possible public-private partnerships in cooperation and capacity building activities;