Article 18.12. Suspension and Termination of Proceedings
1. If the Parties so agree, the panel shall suspend its work at any time for a period agreed by the Parties and not exceeding 12 consecutive months from the date of such agreement. In the event of a suspension of the work of the panel, the relevant time frames set out in this Chapter and in the Rules of Procedure shall be extended by the same amount of time for which the work of the panel was suspended. The panel shall resume its work before the end of the suspension period at the written request of the Parties. If the work of the panel is suspended for more than 12 consecutive months, the panel proceedings shall lapse and the dispute settlement procedure shall be terminated unless the Parties agree otherwise.
2. The Parties may agree to terminate the proceedings of the panel by jointly notifying the chair of the panel at any time before the issuance of the report to the Parties.
Article 18.13. Reports
1. The interim and final reports of the panel shall be drafted without the presence of the Parties. The panel shall base its reports on the relevant provisions of this Agreement and the submissions and arguments of the Parties and may take into account any other relevant information provided to it.
2. Opinions expressed in the reports by the panellists shall be anonymous. Subject to the agreement between the Parties, the reports shall include any separate opinions on matters not unanimously agreed, not disclosing which panellists are associated with majority or minority opinions.
Article 19.14. Interim Report
1. The panel shall present an interim report to the Parties within 90 days of its establishment. In exceptional cases, if the panel considers that it cannot present the interim report within that timeframe, it shall inform the Parties in writing of the reasons for the delay with an estimate date on which the panel will issue its report. A delay shall not exceed an additional period of 30 days unless the Parties agree otherwise.
2. The interim report shall contain:
(a) a descriptive section summarising the development of the panel procedure, including a summary of the arguments of the Parties;
(b) its findings on the facts of the case and on the applicability of this Agreement;
(c) its determination on whether the measure is consistent or not with this Agreement or whether a Party has otherwise failed to carry out its obligations in this Agreement;
(d) if the Parties have jointly requested them, its recommendations for the resolution of the dispute, and (e) its reasons for the findings and determinations.
3. A Party may submit written comments to the panel on its interim report within 15 days of the date of the presentation of the interim report.
4. After considering any written comments by the Parties on the interim report, the panel may modify the interim report and make any further examination it considers appropriate.
Article 18.15. Final Report
1. The panel shall present a final report to the Parties, no later than 120 days of the date of its establishment. When the panel considers that this deadline cannot be met, the chairperson of the panel shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel plans to deliver its final report. Under no circumstances shall the delay exceed 30 days after the deadline, unless the Parties agree otherwise
2. The final report may include a discussion of any written comments made by the Parties on the interim report. The final report shall provide the content of Article 18.14.
3. After taking any steps to protect confidential information, and no later than 15 days after the presentation of the final report, the Parties may make available the final report to the public unless the Parties otherwise agree.
4. The final report shall be binding on the Parties.
Article 18.16. Compliance of the Final Report
1. If the panel determines that the measure at issue is inconsistent with a Party’s obligations in this Agreement or the respondent Party has otherwise failed to carry out its obligations in this Agreement, the respondent Party shall eliminate the non-conformity.
2. If immediate compliance of the final report is not practicable, the respondent Party shall, no later than 20 days after delivery of the final report, notify the complaining Party of the intended length of the reasonable period of time necessary for compliance with the final report.
Article 18.17. Reasonable Period of Time for Compliance
1. The Parties shall endeavour to agree on the reasonable period of time required for compliance with the final report. If the Parties fail to agree on the reasonable period of time within 20 days after the date of receipt of the notification pursuant to Article 18.16.2, the complaining Party may request in writing to the panel to determine the reasonable period of time. Such request shall be notified simultaneously to the other Party.
2. The panel shall deliver its decision to the Parties on the above referenced reasonable period of time within 20 days of the date of submission of the request.
3. The length of the reasonable period of time for compliance with the final report may be extended by mutual agreement of the Parties.
Article 18.18. Non-Implementation – Compensation and Suspension of Benefits
1. Where the responding Party considers it has complied with the obligation under Article 18.16.1, it shall notify the complaining Party without delay. The responding Party shall include in the notification a description of any measure it considers achieves compliance sufficient to allow the complaining Party to assess the measure, as well as the date the measure comes into effect, and the text of the measure, if any.
2. If:
(a) following the expiry of the reasonable period of time established in accordance with Article 18.17, there is disagreement between the Parties as to whether the responding Party has eliminated the non-conformity, or
(b) the responding Party has notified the complaining Party that it does not intend to, or that it is impracticable to, eliminate the non-conformity,
the responding Party shall, upon request of the complaining Party, enter into consultations with the complaining Party no later than 15 days after receipt of that request, with a view to developing mutually acceptable compensation.
3. If the Parties fail to agree on compensation within 30 days after the date of receipt of the request for compensation referred to in paragraph 2, or have agreed on compensation but the responding Party has failed to observe the terms and conditions of that agreement, the complaining Party may provide written notice to the responding Party that it intends to suspend benefits equivalent to the level of the nullification or impairment caused by the non- conformity.
4. The notice referred to in paragraph 3 shall specify the level of benefits that the Party intends to suspend and indicate the relevant sector or sectors in which the complaining Party intends to suspend such benefits. The complaining Party may begin suspending benefits 30 days after the date on which it provides notice under paragraph 3 or the date the panel issues its determination under paragraph 9, whichever is later.
5. In considering what benefits to suspend, the complaining Party shall apply the following principles: (a) the complaining Party should first seek to suspend benefits in the same sector or sectors as that in which the panel has determined non-conformity to exist, and (b) if the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector or sectors, it may suspend benefits in a different sector or sectors. In the written notice referred to in paragraph 3, the complaining Party shall indicate the reasons on which its decision to suspend benefits in a different sector or sectors is based.
6. The level of benefits that the complaining Party intends to suspend shall not exceed the level equivalent to the nullification or impairment caused by the non-conformity.
7. The compensation and suspension of benefits shall be temporary measures. Neither compensation nor the suspension of benefits is preferred to full implementation through elimination of the non-conformity. The suspension shall only be applied until such time as the non-conformity is fully eliminated or until a mutually satisfactory solution is reached. 8. If the responding Party considers that:
(a) it has observed the terms and conditions of the compensation agreement;
(b) the level of benefits intended to be suspended is not equivalent to the level of nullification or impairment caused by the non-conformity;
(c) the complaining Party has failed to follow the principles set out in paragraph 5, or
(d) it has eliminated the non-conformity that the panel has determined to exist,
it may, no later than 30 days after the date of the written notice provided by the complaining Party under paragraph 3, request in writing that the original panel be reconvened to consider the matter. The responding Party shall simultaneously deliver its request to the complaining Party.
9. If a request is made pursuant to paragraph 8, the original panel shall reconvene as soon as possible after the date of delivery of the request and shall present its determination to the Parties no later than 60 days after it reconvenes, or if the original panel cannot be reconvened with its original panellists, after the date on which the last panellist is appointed.
10. In the event the panel determines that the level of benefits the complaining Party intends to suspend is not equivalent to the level of nullification or impairment caused by the non-conformity, it shall determine the level of benefits it considers to be of equivalent level of nullification or impairment. In the event the panel determines that the responding Party has observed the terms and conditions of the compensation agreement, the complaining Party shall not suspend concessions or other obligations referred to in paragraph 3. In the event the panel determines that the complaining Party has not followed the principles set out in paragraph 5, the complaining Party shall apply them consistently with that paragraph.
11. Unless the panel has determined that the responding Party has eliminated the non-conformity, the complaining Party may suspend benefits up to the level the panel has determined under paragraph 10 or, if the panel has not determined the level, the level the complaining Party has intended to suspend under paragraph 4.
Article 18.19. Compliance Review
1. Without prejudice to the procedures in Article 18.18, if a responding Party considers that it has eliminated the non-conformity found by the panel, it may refer the matter to the panel by providing a written notice to the complaining Party. The panel shall issue its report on the matter no later than 90 days after the responding Party provides written notice.
2. If the panel determines that the responding Party has eliminated the non-conformity, the complaining Party shall promptly reinstate any benefits suspended under Article 18.18.
Article 18.20. Remuneration and Expenses
1. Each Party shall bear the cost of its appointed panellist at its own expenses. The cost of the chair of a panel and other expenses associated with the conduct of the proceedings shall be borne by the Parties in equal shares.
2. Each Party shall bear its own expenses and legal costs derived from the participation in the panel proceedings.
Article 18.21. Mutually Agreed Solution
1. The Parties may reach a mutually agreed solution to a dispute under this Chapter at any time.
2. If a mutually agreed solution is reached during the panel procedure, the Parties shall jointly notify that solution to the chairperson of the panel. Upon such notification, the panel procedure shall be terminated.
3. Each Party shall take measures necessary to implement the mutually agreed solution immediately or within the agreed time period, as applicable.
4. No later than at the expiry of the agreed time period, the implementing Party shall inform the other Party, in writing, of any measure that it has taken to implement the mutually agreed solution.
Article 18.22. Time Periods
1. All time periods set out in this Chapter shall be counted in calendar days from the day following the act to which they refer.
2. Any time period referred to in this Chapter may be modified by mutual agreement of the Parties.
Chapter 19. EXCEPTIONS
Article 19.1. General Exceptions
1. For the purposes of Chapter 2 (Trade in Goods), Chapter 3 (Rules of Origin), Chapter 4 (Customs Administrations and Trade Facilitation), Chapter 5 (Sanitary and Phytosanitary Measures) and Chapter 6 (Technical Barriers to Trade), Article XX of the GATT 1994 and its interpretative note are incorporated into and made part of this Agreement, mutatis mutandis.
2. For the purposes of Chapter 8 (Trade in Services) and Chapter 9 (Digital Trade), Article XIV of the GATS (including its footnotes) is incorporated into and made part of this Agreement, mutatis mutandis.
Article 19.2. Security Exceptions
1. Nothing in this Agreement shall be construed:
(a) to require a Party to furnish any information the disclosure of which it considers contrary to its essential security interests;
(b) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests:
(i) relating to fissionable materials or the materials from which they are derived;
(ii) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials, or relating to the supply of services, as carried on directly or indirectly for the purpose of supplying or provisioning a military establishment, or
(iii) taken in time of war or other emergency in international relations, or
(c) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
2. A Party taking action under paragraphs 1(b) and (c) shall inform the Joint Committee, to the fullest extent possible, of measures taken and of their termination.
Article 19.3. Taxation Measures
1. For the purposes of this Article: designated authorities means:
(a) for Chile, the Minister of Finance (Ministro de Hacienda) or an authorised representative of the Minister, and
(b) for the UAE, the Minister of Finance or an authorised representative of the Minister;
tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement to which the Parties are party, and
taxes and taxation measures include excise duties, but do not include:
(a) a customs duty as defined in Article 1.3 (General Definitions), or
(b) the measures listed in subparagraphs (b) and (c) of that definition.
2. Except as provided in this Article, nothing in this Agreement shall apply to taxation measures.
3. This Agreement shall apply to taxation measures only to the same extent as does Article III of the GATT 1994.
4. Nothing in this Agreement shall affect the rights and obligations of the Parties under any tax convention. In the event of any inconsistency between this Agreement and any such tax convention, that convention shall prevail to the extent of the inconsistency.
5. If an issue arises as to whether any inconsistency exists between this Agreement and a tax convention, the issue shall be referred to the designated authorities. The designated authorities shall determine the existence and the extent of such inconsistency. A determination made under this paragraph by the designated authorities shall be binding.
Article 19.4. Balance-of-Payments Measures
1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes.
2. Any measure taken for balance-of-payments purposes shall be in accordance with that Party’s rights and obligations under the GATT 1994, including the Understanding on the Balance-of-Payments Provisions of the GATT 1994, and Article XII of the GATS, including on payments, transfers or capital movements, as applicable. A Party shall publish or notify the other Party of any restrictive measures adopted or maintained, or any changes therein, to the extent that it does not duplicate the process under the WTO and the International Monetary Fund.
3. Nothing in this Chapter shall be regarded as altering the rights enjoyed and obligations undertaken by a Party as a party to the Articles of the Agreement of the International Monetary Fund, as may be amended. 1.
Chapter 20. ADMINISTRATION OF THE AGREEMENT
Article 20.1. Joint Committee
1. The Parties hereby establish a Joint Committee.
2. The Joint Committee shall comprise representatives of each Party and be co-chaired by:
(a) for Chile, the Undersecretary of International Economic Relations, or its designee, and
(b) for the UAE, the Minister of State for Foreign Trade, or its designee.
Article 20.2. Procedures of the Joint Committee
1. The Joint Committee shall hold its first meeting within one year of the date of entry into force of this Agreement. Thereafter, the Joint Committee shall meet at least every two years in regular session. The Joint Committee shall also meet in special session without undue delay from the date of a request thereof from either Party.
2. The meetings of the Joint Committee shall take place in person or by any other means as determined by the Parties. Meetings that take place in person shall be held alternately in the territories of the Parties, unless the Parties agree otherwise.
3. The Joint Committee shall establish its own rules of working procedures at its first meeting.
4. The Joint Committee shall adopt its decisions and recommendations by consensus.
Article 20.3. Functions of the Joint Committee
1. The Joint Committee shall:
(a) consider any matter relating to the implementation or operation of this Agreement;
(b) review and assess the results and overall implementation or operation of this Agreement;
(c) consider and recommend to the Parties amendments to this Agreement that may be proposed by either Party, including the modification of concessions made under this Agreement;
(d) supervise the work of all subcommittees and working groups established under this Agreement;
(e) establish the accession process referred to in Article 21.3.4 (Accession);
(f) establish the Rules of Procedure referred to in Article 18.11.9 (Proceedings of Arbitral Panels), and, if appropriate, amend those Rules, and
(g) establish the Code of Conduct referred to in Article 18.10.5(c) (Composition of Arbitral Panels).
2. The Joint Committee may: (1)
(a) adopt decisions to develop:
(i) the Schedules of Tariff Commitments set out in Annex 2A and Annex 2B;
(ii) the List of Product Specific Rules set out in Annex 3A;
(iii) the Schedules set out in Annex 10 to Chapter 10 (Government Procurement), and
(iv) other provisions of this Agreement that require further implementation, where applicable;
(b) establish, refer matters to, or consider matters raised by, standing or ad hoc subcommittees or working groups;
(c) if requested by either Party, issue interpretations of the provisions of this Agreement, which shall be binding, and (d) carry out any other actions as may be agreed by the Parties.
Article 20.4. Contact Points and Communications
1. Each Party shall designate an overall contact point to facilitate communications between the Parties on any matter covered by this Agreement. Each Party shall notify the other Party in writing of its contact point no later than 60 days after the date of entry into force of this Agreement.
2. All communications between the Parties in relation to this Agreement shall be in the English language.
Chapter 21. FINAL PROVISIONS
Article 21.1. Annexes and Footnotes
The Annexes and footnotes to this Agreement constitute an integral part of this Agreement.
Article 21.2. Amendments
1. The Parties may agree in writing to amend this Agreement.
2. Without prejudice to paragraph 1, either Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and recommendation. Amendments to this Agreement shall, after recommendation by the Joint Committee, be submitted to the Parties.
3. Amendments to this Agreement shall enter into force in the same manner as provided for in Article 21.5, unless otherwise agreed by the Parties.
Article 21.3. Accession
1. This Agreement shall be open for accession by any country or group of countries. Any country or group of countries may accede to this Agreement subject to such terms and conditions as may be agreed between the country or group of countries and the Parties.
2. A country or group of countries may seek to accede to this Agreement by submitting a request in writing through diplomatic channels to the Parties.
3. Subject to the terms and conditions agreed pursuant to paragraph 1, the acceding country or group of countries shall become a Party to this Agreement 90 days after the date of which all the Parties, including the acceding country or group of countries, have notified in writing through diplomatic channels that they have completed their respective applicable internal legal procedures.
4. In addition to this Article, the accession process shall be carried out in accordance with the procedure for accession to be adopted by the Joint Committee.
5. Notwithstanding the above paragraphs, this Article shall not be construed to prevent a Party to this Agreement from entering into bilateral or multilateral negotiations with any country or group of countries who seeks to accede to this Agreement.
Article 21.4. Duration and Termination
1. This Agreement shall be in force for an indefinite period.
2. Either Party may terminate this Agreement by written notification to the other Party, and such termination shall take effect 180 days after the date of the notification.
Article 21.5. Entry Into Force
Unless the Parties agree otherwise, this Agreement shall enter into force 90 days following the date of the last diplomatic note by which the Parties inform each other that they have completed all necessary requirements and internal legal procedures for the entry into force of this Agreement.
Article 21.6. Future Work Programme
1. The Parties shall, within the first year of the entry into force of this Agreement, initiate, on a mutually advantageous basis, negotiations on financial services, including payment and transfer, and trade and environment.
2. The results of the negotiations referred to in paragraph 1 shall form an integral part of this Agreement.
3. The Parties reaffirm their commitment to finalise the ongoing negotiations of an agreement on a bilateral investment and expedite the process.
4. The Parties agree to establish a work plan for the protection of geographical indications under this Agreement, while recognising the Parties’ different regulatory approaches.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.
DONE at Abu Dhabi, on 29 July 2024, in duplicate, in the English language. The Arabic and the Spanish translation of this Agreement shall be exchanged through diplomatic channels within 60 days after the signature of this Agreement. All texts of this Agreement, including the translation into Arabic and Spanish, shall be equally authentic. In the event of any inconsistency between those texts, the English text shall prevail.
For the Government of the Republic of Chile
For the Government of the United Arab Emirates