1. The Party taking a bilateral safeguard measure shall, in consultation with the other Party, provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. Such consultations shall begin within thirty days of the imposition of the measure. When the Parties reach agreement on such compensation the Party taking the measure shall apply the compensation immediately.
2. If the Parties are unable to reach agreement on compensation as provided in paragraph 1, 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 bilateral safeguard measure. That Party may suspend the concessions only for the minimum period necessary to achieve the substantially equivalent effects and only while the bilateral safeguard measure is maintained. The right of suspension referred to in this paragraph shall not be exercised for the first year that a bilateral safeguard measure is in effect, provided that the bilateral safeguard measure has been taken as a result of an absolute increase in imports and that such a measure conforms to the provisions of this Chapter.
3. A Party shall notify the other Party in writing at least thirty 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 bilateral safeguard measure.
Chapter 9. Cooperation
Article 9.1. Objectives
1. The Parties agree to establish a framework for collaborative activities between them as a means to expand and enhance the benefits of this Agreement for building an economic partnership between them.
2. The Parties will establish close cooperation aimed, inter alia, at:
(a) strengthening and building on existing cooperative relationships between the Parties;
(b) creating new opportunities for trade and investment, promoting competitiveness and innovation including the involvement of government and business sectors and the academia;
(c) supporting the important role of the business sector and the academia in promoting and encouraging mutual economic growth and development;
(d) encouraging the presence of the Parties and their goods and services in the respective markets of Asia Pacific and Latin America;
(e) reinforcing and expanding cooperation, collaboration and mutual exchange in the cultural and educational areas; and
(f) increasing the level of and deepening cooperation activities between the Parties in areas of mutual interest.
Article 9.2. Scope
1. The Parties affirm the importance of all forms of cooperation, including, but not limited to, the areas enlisted in Article 9.3.
2. Areas of cooperation will be developed and agreed upon by the Parties in formal documents.
3. Cooperation between the Parties should contribute to achieving the objectives of this Agreement through the identification and development of innovative cooperation programs capable of providing added value to their relationships.
4. Cooperative activities will be agreed upon between the Parties and may include, but not limited to, those enlisted in Article 9.4.
5. Cooperation between the Parties under this Chapter will complement the cooperation and cooperative activities between the Parties set out in other Chapters of this Agreement.
Article 9.3. Fields of Cooperation
Fields of cooperation and capacity building under this Chapter shall include, inter alia:
(a) economic development;
(b) innovation, research and development;
(c) agriculture, food industry and forestry;
(d) mining and industry;
(e) energy;
(f) small and medium-sized enterprises;
(g) tourism;
(h) education and human capital development;
(i) culture;
(j) gender issues;
(k) climate change;
(l) health care, and
(m) development aspects.
Article 9.4. Activities of Cooperation
In pursuit of the objectives set out in Article 9.1, the Parties will encourage and facilitate, as appropriate, the following activities, including, but not limited to:
(a) building upon existing agreements or arrangements for cooperation;
(b) facilitating the exchange of experts, information, documentation, experiences;
(c) promoting cooperation in regional and multilateral fora;
(d) guiding cooperative activities;
(e) providing technical assistance; and
(f) organizing dialogues, conferences, seminars and training programs.
Article 9.5. Committee on Cooperation
1. The Parties hereby establish a Committee on Cooperation (hereinafter referred to as "the Committee"), comprising of representatives of each Party.
2. For purposes of this Article, the Committee shall be coordinated by:
(a) in the case of Chile, the Ministry of Foreign Affairs through the General Directorate for International Economic Affairs, or its successor; and
(b) in the case of Viet Nam, the Americas Market Department designated by the Ministry of Industry and Trade, or its successor.
3. In order to facilitate the communication and ensure the proper functioning of the Committee, the Parties will designate a contact point no later than six (6) months following the date of entry into force of this Agreement.
4. The Committee shall meet when necessary, as agreed by the Parties. At the first meeting, the Committee shall agree on its terms of reference.
5. The Committee's functions shall include: (a) to specify the fields of cooperation and the cooperative activities;
(b) to oversee the implementation of the collaboration agreed by the Parties;
(c) to encourage the Parties to undertake cooperation activities under this Chapter;
(d) to define any other activity of cooperation deemed necessary by the Parties; and
(e) to maintain updated information, as appropriate regarding any cooperation agreements or arrangements between the Parties. 6. The Committee may agree to establish ad hoc working groups.
7. The Committee may interact, where appropriate, with relevant agencies to address specific matters.
8. The Committee shall report periodically to the Commission the results of its meetings. The Commission may recommend actions regarding cooperation activities under this Chapter, in accordance with the strategic priorities of the Parties.
Article 9.6. Cooperation with Non-parties
The Parties recognize the value of international cooperation for the promotion of sustainable development and agree to develop, where appropriate, projects of mutual interest with non-Parties with the consent of the Parties.
Article 9.7. Non-application of Dispute Settlement
The dispute settlement mechanism provided for in Chapter 12 (Dispute Settlement) shall not apply to this Chapter.
Article 9.8. Resources
The Parties shall provide, within the limits of their own capacities and through their own channels, adequate resources for the fulfillment of the objectives of this Chapter.
Chapter 10. Transparency
Article 101. Definitions
For the purposes of this Chapter, administrative ruling of general application means an administrative 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 procedure that applies to a particular person, good or service 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 points referred to in Annex 10-A shall facilitate communications between the Parties on any matter covered by this Agreement.
2. Upon request of the other Party, the contact points 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, in accordance with its domestic legislation, that its laws, regulations, procedures and administrative rulings of general application, with respect to any matter covered by this Agreement, are promptly published or otherwise made publicly available, including wherever possible in electronic form.
2. When introducing or changing its laws or regulations that significantly affect the implementation and operation of this Agreement, each Party should, to the extent possible, in accordance with its laws and regulations, endeavor to provide, except in emergency situations, a reasonable period between the time when such laws or regulations, as introduced or changed, are published or made publicly available, and the time when they enter into force.
3. To the extent possible, in accordance with its domestic laws, each Party shall:
(a) publish in advance any such measure referred to in paragraph 1 that it proposes to adopt; and
(b) provide interested persons and the other Party for 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. Upon request of the other Party, a Party shall promptly 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 Procedures
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 procedures in which these measures are applied to particular persons, goods or services of the other Party in specific cases, that it:
(a) provides wherever possible, persons of the other Party that are directly affected by a proceeding, 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) affords such persons 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) follows its procedures in accordance with its domestic law.
Article 10.6. Review and Appeal
1. Each Party shall establish or maintain, in accordance with its laws and regulations, judicial or administrative tribunals or procedures for the purpose of 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.
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. Administration
Article 11.1. Free Trade Commission
1. The Parties hereby establish the Free Trade Commission.
2. The Commission shall be composed of relevant government officials of each Party and shall be co-chaired by senior officials of the Parties.
3. The Commission shall:
(a) review and monitor the implementation and operation of this Agreement;
(b) consider and, as appropriate, decide on specific matters relating to the implementation and operation of this Agreement, including matters reported by relevant Committees or working groups established under this Agreement;
(c) supervise and coordinate the work of the Committees and the working groups established under this Agreement;
(d) seek to resolve disputes that may arise regarding the interpretation, implementation or application of this Agreement;
(e) adopt the Rules of Procedures pursuant to Article 12.14; and
(f) carry out any other function as the Parties may agree.
4. The Commission may:
(a) establish and delegate responsibilities to any Committee or working group;
(b) consider and adopt any modifications of: (5)
(i) the Schedules attached to Annex 3-B (Reduction and/or Elimination of Customs Duties), by accelerating tariff elimination, and
(ii) the rules of origin established in Annex 4-B (Product Specific Rules); and
(c) issue interpretations of the Agreement.
Article 11.2. Procedures of the Commission
1. The Commission shall convene annually in regular sessions, unless the Parties otherwise agree.
2. The Commission shall meet alternately in the territory of each Party, unless the Parties otherwise agree.
3. The Commission shall also meet in special sessions within thirty (30) days of the request of a Party, with such session to be held in the territory of the other Party or at such location as may be agreed by the Parties.
4. Meetings of the Commission may be held in person or, if agreed by the Parties, by any technological means available to them.
5. All decisions of the Commission shall be taken by mutual agreement.
6. The Commission shall establish its rules and procedures at its first meeting.
Chapter 12. Dispute Settlement
Article 12.1. Scope of Application
Except as otherwise provided in this Agreement, this Chapter shall apply with respect to the avoidance or settlement of disputes between the Parties regarding the implementation, interpretation or application of this Agreement wherever a Party considers that:
(a) a measure of the other Party is inconsistent with the obligations of this Agreement; or
(b) the other Party has failed to carry out its obligations under this Agreement.
Article 12.2. Choice of Forum
1. Where a dispute regarding any matter arises under this Agreement and under another trade agreement to which both Parties are party or the WTO Agreement, the complaining Party may select the dispute settlement procedure to resolve the dispute.
2. Once the complaining Party has requested an arbitral tribunal under an agreement referred to in paragraph 1, the dispute settlement procedure selected shall be used to the exclusion of the others.
Article 12.3. Consultations
1. Either Party may request in writing consultations to the other Party concerning any matter on the implementation, interpretation or application of this Agreement.
2. The request for consultations shall set out the reasons for the request, including identification of the specific measures at issue and an indication of the legal basis for the complaint, and providing sufficient information to enable an examination of the matter.
3. When a Party requests for consultations pursuant to paragraph 1, the other Party shall reply to the request and enter into consultations in good faith within thirty (30) days after the date of receipt of the request, with a view to reaching a prompt and mutually satisfactory resolution of the matter. In case of consultations regarding perishable goods, the other Party shall enter into consultations within fifteen (15) days after the date of receipt of the request.
4. The Parties shall make every effort to arrive to a mutually satisfactory resolution of the matter through consultations under this Article.
5. In consultations under this Article, a Party may request the other Party to make available personnel of its government agencies or other regulatory bodies who have expertise in the matter subject to consultations.
6. The consultations under this Article shall be confidential and without prejudice to the rights of either Party in any further proceedings.
Article 12.4. Referral of Matters to the Commission
1. If the consultations fail to resolve the dispute within forty (40) days after the date of receipt of the request for consultations under Article 12.3(2), or twenty (20) days after the date of receipt of the request for consultations under Article 12.3(2) in cases of urgency, including those which concern perishable goods, the complaining Party may refer the matter to the Commission by delivering written notification to the other Party. The Commission shall endeavour to resolve the matter.
2. The Commission may:
(a) call on such technical advisers or create such working groups or expert groups as it deems necessary;
(b) have recourse to good offices, conciliation, mediation or such other dispute resolution procedures, which proceedings and in particular the positions taken by the disputing Parties during them, shall be confidential and without prejudice to the rights of any Party in any further proceedings under these procedures; or
(c) make recommendations; as may assist the Parties to reach a mutually satisfactory resolution of the dispute.
Article 12.5. Establishment of Arbitral Tribunals
1. The complaining Party that made a request for consultations under Article 12.3 may request in writing the establishment of an arbitral tribunal if the Parties fail to resolve the matter within:
(a) forty five (45) days after the date of the receipt of the request for consultations under Article 12.3(2) if there is no referral to the Commission under Article 12.4;
(b) thirty (30) days after the Commission convened pursuant to Article 12.4, or fifteen (15) days in cases of urgency including those which concern perishable goods; or
(c) sixty (60) days after a Party has received the request for consultations under Article 12.3, or thirty (30) days in cases of urgency including those which concern perishable goods, if the Commission has not convened after a referral under Article 12.4.
2. Any request to establish an arbitral tribunal pursuant to this Article shall identify:
(a) the specific measure at issue;
(b) the legal basis of the complaint, including any provision of this Agreement alleged to have been breached; and (c) the factual basis for the complaint.
3. The arbitral tribunal shall be established and perform its functions in a manner consistent with the provisions of this Chapter.
4. The date of the establishment of an arbitral tribunal shall be the date on which the chair is appointed.