3. In the interpretation of a reservation all its elements shall be considered. The Description element shall prevail over the other elements.
4. In accordance with Articles 9.8.2 and 10.6.2 (Non-conforming Measures), the Articles of this Agreement specified in the Obligations Concerned element of a Schedule do not apply to the sectors, sub-sectors and activities listed in the Description element of that Schedule.
5. For the purposes of this Agreement, it shall be understood that formalities enabling the conduct of business, such as measures requiring: registration under domestic law, an address, legal representation, an operating licence or permit, need not be reserved in Annexes I and II with respect to Articles 9.2 and 10.2 (National Treatment) or 10.4 (Local Presence) of the Agreement, provided that the measure does not impose a requirement to establish an operational office or other ongoing business presence as a condition for the provision of the service in the country.
Annex II . Chile
Sector: All Sectors
Subsector:
Obligations concerned:
National Treatment (Article 9.2)
Most Favoured Nation Treatment (Article 9.3)
Description: Investment
Chile reserves the right to adopt or maintain any measure relating to residency requirements for the ownership, by investors of the other Party or their investments, of coastal land.
A Chilean natural person, a person resident in Chile or a Chilean juridical person may acquire or control land used for agriculture. Chile otherwise reserves the right to adopt or maintain any measure relating to the ownership or control of such land. In the case of a juridical person, a majority of each class of shares may be required to be owned by Chilean natural persons or persons resident in Chile. A person is considered a resident if he resides in Chile one hundred and eighty-three (183) days a year or more.
Measures in force: Decree Law 1.939, Official Gazette, November 10, 1977,
Rules on the acquisition, administration and disposal of State property, Title I
Sector: All Sectors
Subsector:
Obligations Concerned: National Treatment (Article 9.2)
Senior Executives and Boards of Directors (Article 9.7)
Description: Investment
Chile, in selling or disposing of an equity interest or assets of an existing state enterprise or existing governmental entity, reserves the right to prohibit or impose limitations on the ownership of such interest or assets, and on the ability of the owners of such interest or assets to control any resulting enterprise, by investors of Colombia or a non-signatory country or their investments. In connection with any such sale or other disposition, Chile may adopt or maintain any measure relating to the nationality of senior management or members of the board of directors.
For the purposes of this reservation:
a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on participation in equity interests or assets or imposes nationality requirements described in this reservation, shall be deemed to be a measure in effect; and
b) “State enterprise" means an enterprise owned or controlled by Chile through ownership interest and includes an enterprise established after the date of entry into force of this Agreement solely for the purpose of selling or disposing of an equity interest in, or the assets of, an existing State enterprise or governmental entity.
Measures in force:
Sector: All Sectors
Subsector:
Obligations concerned Most Favoured Nation Treatment (Articles 9.3 and 10.3)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure providing for differential treatment of countries in accordance with any bilateral or multilateral international treaty in force or entered into prior to the date of entry into force of this Agreement.
Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries in accordance with any international treaty in force or entered into after the date of entry into force of this Agreement with respect to:
a) aviation;
b) fishing; or
c) maritime affairs, including salvage.
Measures in force:
Sector: Minority issues
Subsector:
Obligations concerned:
National Treatment (Articles 9.2 and 10.2)
Most Favoured Nation Treatment (Articles 9.3 and 10.3) Local Presence (Article 10.4)
Performance Requirements (Article 9.6) Senior Executives and Boards (Article 9.7)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure granting rights or preferences to socially or economically disadvantaged minorities.
Measures in force:
Sector: Indigenous Peoples' Issues
Subsector:
Obligations concerned:
National Treatment (Articles 9.2 and 10.2)
Most Favoured Nation Treatment (Articles 9.3 and 10.3) Local Presence (Article 10.4)
Performance Requirements (Article 9.6) Senior Executives and Boards (Article 9.7)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure that denies investors of Colombia and their investments or service suppliers of Colombia any rights or preferences granted to indigenous peoples.
Measures in force:
Sector: Communications
Subsector: Basic telecommunications networks and services
local; digital telecommunications services of one-way satellite transmissions whether direct-to-home television, direct broadcasting of television services and direct audio services; complementary telecommunications services; and limited telecommunications services
Obligations concerned:
National Treatment (Article 10.2)
Most Favoured Nation Treatment (Article 10.3) Local Presence (Article 10.4 )
Description: Cross Border Trade in Services
Chile reserves the right to adopt or maintain any measure with respect to cross-border trade in local basic telecommunications networks and services; digital telecommunications services of one-way satellite broadcasting, direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services; and limited telecommunications services.
Measures in force: Law 18.168, Diario Oficial, October 2, 1982, General Law of Telecommunications, Titles I, II, III, V and VI
Sector: Communications
Subsector: Basic telecommunications networks and services
local; digital telecommunications services of one-way satellite transmissions whether direct-to-home television, direct broadcasting of television services and direct audio services; supplementary telecommunications services and limited telecommunications services
Obligations concerned:
National Treatment (Article 9.2)
Most Favoured Nation Treatment (9.3) Performance Requirements (Article 9.6) Senior Executives and Boards of Directors (Article 9.7)
Description: Investment
Chile reserves the right to adopt or maintain any measure with respect to investors or investment by investors of the other signatory country in local basic telecommunications networks and services; digital telecommunications services of one-way satellite transmissions whether direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services and limited telecommunications services.
Measures in force: Law 18.168, Diario Oficial, October 2, 1982, General Law of Telecommunications, Titles I, II and III
Sector: Education
Subsector:
Obligations concerned
National Treatment (Article 10.2)
Most Favoured Nation Treatment (Article 10.3) Local Presence (Article 10.4)
Description: Cross-border trade in services
Chile reserves the right to adopt or maintain any measure with respect to natural persons providing educational services, including teachers and auxiliary staff providing educational services at the basic, pre-basic, kindergarten, differential, secondary, higher, professional, technical, university and other persons providing education-related services, including the providers, in educational establishments of any kind, schools, colleges, high schools, academies, training centres, professional and technical institutes and/or universities.
This reservation does not apply to the provision of second language training, business training, industrial and commercial training and skills upgrading and education consultancy services, including technical support and consultancy, curriculum and programme development.
Measures in force:
Sector: Government Finance
Subsector:
Obligations concerned:
National Treatment (Article 9.2)
Description: Investment
Chile reserves the right to adopt or maintain any measure with respect to the acquisition, sale, or other disposition by nationals of Colombia of bonds, treasury securities, or other debt instruments issued by the Central Bank or the Government of Chile.
Measures in force:
Sector: Fisheries
Subsector: Activities related to fishing
Obligations concerned:
National Treatment (Article 9.2 and 10.2)
Most Favoured Nation Treatment (Articles 9.3 and 10.3)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to control the fishing activities of foreigners, including landing, first landing of processed fish at sea and access to Chilean ports (port privilege).
Chile reserves the right to control the use of beaches, beach lands, portions of water and seabed for the granting of maritime concessions. For greater certainty, "maritime concessions" does not include aquaculture.
Measures in force: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law Titles I, II, III, IV and V.
Decree with Force of Law 340, Official Gazette, April 6, 1960, on Maritime Concessions.
Decreto Supremo 660, Diario Oficial, November 28, 1988, Reglamento de Concesiones Marítimas.
Decreto Supremo Nº123, Ministerio de Economía, Subsecretaría de Pesca, Diario Oficial, August 23, 2004, sobre Uso de Puertos (Supreme Decree Nº123, Ministry of Economy, Undersecretariat of Fisheries, Official Gazette, August 23, 2004, on Port Use).
Sector: Cultural Industries
Subsector:
Obligations Concerned: Most Favoured Nation Treatment (Articles 9.3 and 10.3)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure that accords different treatment to countries under any existing or future bilateral or multilateral international treaty with respect to cultural industries, such as audiovisual cooperation agreements. For greater certainty, governmental support programmes, through subsidies, for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement.
Cultural industries means any person who carries out any of the following activities:
(a) the publication, distribution or sale of printed or electronic books, magazines, periodicals or newspapers, but does not include the isolated activity of printing or typesetting of any of the foregoing;
(b) the production, distribution, sale or exhibition of film or video recordings;
(c) the production, distribution, sale or exhibition of audio or video recordings of music;
(d) the production, distribution or sale of printed or machine-readable music; or
(e) radiocommunications where the transmissions are intended to be received directly by the general public, as well as all activities related to radio, television and cable broadcasting and satellite programming services and transmission networks.
Measures in force:
Sector: Social services
Subsector:
Obligations concerned:
National Treatment (Article 9.2 and 10.2)
Most Favoured Nation Treatment (Articles 9.3 and 10.3) Local Presence (Article 10.4)
Performance Requirements (Article 9.6) Senior Executives and Boards (Article 9.7)
Description: Investment and Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure with respect to the execution of public law and the provision of social rehabilitation services as well as the following services, insofar as they are social services that are established or maintained in the public interest: income insurance or security, social security services, social welfare, public education, public training, health and child care.
Measures in force:
Sector: Environment-related services
Subsector:
Obligations concerned:
National Treatment (Article 10.2)
Most Favoured Nation Treatment (Article 10.3) Local Presence (Article 10.4)
Description: Cross-border trade in services
Chile reserves the right to adopt or maintain any measure relating to the imposition of requirements that the production and distribution of drinking water, the collection and disposal of sewage, and sanitary services such as sewerage, waste disposal and sewage treatment may only be provided by Chilean juridical persons or persons created in accordance with requirements established by Chilean law.
This reservation does not apply to consultancy services contracted by such legal entities.
Measures in force:
Sector: Construction-related services
Subsector:
Obligations concerned:
National Treatment (Article 10.2) Local Presence (Article 10.4)
Description: Cross-border trade in services
Chile reserves the right to adopt or maintain any measure relating to the supply of construction services by foreign legal persons or entities, in the sense of imposing residency requirements, registration and/or any other form of local presence, or establishing the obligation to provide financial security for work as a condition for the supply of construction services.
Measures in force:
Sector: Land transport Road transport