Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 14. MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES AND ENTREPRENEURS
Article 14.1. General Principles
1. The Parties recognize that micro, small and medium-sized enterprises (hereinafter referred to as "MSMEs"), which include micro, small and medium-sized enterprises and entrepreneurs, contribute significantly to trade, economic growth, employment and innovation. The Parties shall endeavor to support the growth and development of MSMEs by enhancing their ability to participate in and benefit from the opportunities created by this Agreement.
2. The Parties recognize that non-tariff barriers represent a disproportionate burden on MSMEs. They also recognize that, in addition to the provisions of this Chapter, there are other provisions in the Agreement that seek to enhance cooperation between the Parties on matters related to MSMEs or that may otherwise be particularly beneficial to MSMEs.
Article 14.2. Exchange of Information
1. Each Party shall establish or maintain its own publicly accessible website containing information with respect to this Agreement, including:
(a) the text of this Agreement, and its relationship with ACE N° 35;
(b) a summary of this Agreement, and
(c) information for MSMEs, containing:
(i) a description of the provisions of this Agreement that the Party considers relevant to MSMEs, and
(ii) any additional information that the Party considers useful for MSMEs interested in benefiting from the opportunities granted by this Agreement.
2. Each Party shall include, on the site referred to in paragraph 1, links to:
(a) the equivalent websites of the other Party, and
(b) the websites of its government agencies and other appropriate entities that provide information that the Party considers useful to any person interested in trading, investing or doing business in the territory of that Party.
3. The information described in paragraph 2(b) may include:
(a) the rates of duties and taxes of any kind levied on or in connection with imports or exports, with special emphasis on the situation of MSMEs;
(b) import, export and transit procedures, including procedures at ports, airports and other points of entry, and the forms and documents required, highlighting special benefits and obligations for MSMEs, where they exist;
(c) the procedures and regulations applicable in the area of certification of origin, including digital certification, certification of multiple transactions and exceptions in certain circumstances;
(d) regulations and procedures on intellectual property rights;
(e) technical regulations, standards, and sanitary and phytosanitary measures related to import and export;
(f) procurement, transparency and publication rules, as well as other relevant provisions contained in Chapter 12 (Procurement);
(g) procedures for business registration, with emphasis on eventual differences in relation to MSMEs, and
(h) any additional information that the Parties deem relevant.
4. Each Party shall regularly review the information and links on the website referred to in paragraphs 1 and 2 to ensure that such information and links are correct and up to date.
5. Each Party shall ensure that the information contained in this Article is presented in a clear and practical manner, with a focus on facilitating access and use by MSMEs. Whenever possible, each Party shall seek to provide the information referred to in this Article in Spanish and Portuguese.
6. No fee shall be charged for access to information provided pursuant to paragraphs 1 and 2.
Article 14.3. MSMEs Committee
1. The Parties establish a Committee on MSMEs (hereinafter referred to as the "Committee"), composed of government representatives of each Party. The Committee shall be composed of:
(a) in the case of Brazil, by the Ministry of Industry, Foreign Trade and Services, through its Department of Support for Micro and Small Businesses and by the Ministry of Foreign Affairs, through its Investment Division, or its successors, and
(b) in the case of Chile, by the Ministry of Economy, Development and Tourism, through its Small Business Division, or its successor.
2. The Committee:
(a) identify ways to assist MSMEs of the Parties to take advantage of trade opportunities under this Agreement;
(b) exchange and discuss each Party's experiences and best practices in supporting and assisting exporting MSMEs with respect to, among other things, training programs, trade education, trade finance, identification of trading partners in other Parties, and the establishment of good business references;
(c) recommend additional information that a Party may include on the website referred to in Article 2;
(d) review and coordinate the work program of the Committee with other committees, working groups and any subsidiary bodies established under this Agreement, as well as those of other relevant international organizations, in order not to duplicate those work programs and to identify appropriate opportunities for cooperation to enhance the ability of MSMEs to engage in the trade and investment opportunities provided by this Agreement;
(e) collaborate with and encourage other committees, subcommittees, working groups and any other bodies established under this Agreement to integrate MSME-related commitments and activities into their work;
(f) exchange information to assist in monitoring the implementation of this Agreement as it relates to MSMEs;
(g) review the implementation and operation of this Chapter;
(h) report results and make recommendations to the Administrative Commission that can be included in future assistance programs and MSME programs, as appropriate;
(i) will discuss current issues related to MSMEs, and
(j) consider any other matters relating to MSMEs that the Committee may decide, including any issues raised by MSMEs regarding their ability to benefit from this Agreement.
3. The Committee may meet, when necessary, in person or by any other available technological means.
4. The Committee may, where appropriate, seek to collaborate with appropriate experts and international donor organizations to carry out its programs and activities.
Article 14.4. Consultations
The Parties shall make every effort to reach, through dialogue, consultation and cooperation, an understanding on any matter that may arise regarding the interpretation and application of this Chapter.
Article 14.5. Non-Application of Dispute Resolution
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 15. REGIONAL AND GLOBAL VALUE CHAINS
Article 15.1. General Provisions
1. The Parties recognize the importance of deepening integration in trade in goods, services and investment through the incorporation of new trade disciplines that recognize the current dynamics in international trade, such as regional and global value chains, with a view to modernizing and expanding the bilateral economic relationship between the Parties.
2. The Parties reaffirm their commitment to regional integration and recognize the importance of the benefits of trade integration being felt by the citizens of both Parties.
3. The Parties recognize that international trade and investment are drivers of economic growth, and that the internationalization of companies and their insertion into regional and global value chains should be facilitated.
4. The Parties stress the importance of micro, small and medium-sized enterprises (hereinafter referred to as "MSMEs"), which include micro, small and medium-sized enterprises and entrepreneurs, in the productive structure of the countries and their impact on employment, and that their proper integration into regional and global value chains contributes to a better allocation of resources and economic benefits derived from international trade, including the diversification and increase in the value added of exports.
5. The Parties underscore the importance of the participation of the private sector as a key player in regional and global value chains and their governance, and the importance of generating an enabling environment for public-private policies.
6. The Parties recognize the importance for the development of regional and global value chains of aspects such as: a better understanding of cumulation of origin, connectivity, e-commerce, digitalization and Industry 4.0, as catalysts for greater cross-border productive integration.
7. The Parties recognize the importance of the services sector, especially services associated with regional and global value chains, in trade integration.
8. Each Party shall seek to promote internally public awareness of its laws, regulations, policies and practices in matters of regional integration and regional and global value chains.
Article 15.2. International Agreements and Regional Integration Initiatives
1. The Parties reiterate their commitments regarding regional integration and economic cooperation established in ACE N° 35.
2. The Parties ratify the provisions of the WTO Trade Facilitation Agreement.
3. The Parties recognize the provisions of the 2015 Agreement on Bioceanic Corridors.
4. Each Party reaffirms its commitment to implement the obligations contained in other international agreements and initiatives to which it is a party that relate to regional integration and regional and global value chains.
Article 15.3. Cooperative Activities
1. The Parties recognize the benefit of sharing their respective experiences in designing, implementing, strengthening and monitoring policies and programs to encourage the participation of enterprises, especially MSMEs, in regional and global value chains.
2. The Parties shall undertake cooperative activities of mutual interest designed to take better advantage of the complementarities of their economies and to expand the capacity and conditions for enterprises, especially MSMEs, to access and benefit from the opportunities created by this Agreement.
3. Cooperative activities shall be carried out on issues and topics agreed upon by the Parties through interaction with their respective governmental institutions, businesses, educational and research institutions, other non-governmental organizations and their representatives, as appropriate.
4. The Parties shall take into account in cooperation activities, where appropriate, inclusive trade, the participation of women in regional and global value chains, sustainable development and corporate social responsibility.
5. Areas of cooperation may include:
(a) develop programs to identify the attributes that MSMEs and local productive arrangements need to develop in order to insert themselves into regional and global value chains;
(b) to promote the incorporation of MSMEs into the value chains led by trans-Latin multinational companies operating in the region, through joint work with such companies, taking into account the link between investment and the development of supply chains;
(c) develop public-private strategies for detecting opportunities, for example, economic sectors and local productive arrangements with potential for insertion into value chains and the development of productive linkages;
(d) propose joint strategies to analyze and promote the insertion of companies in regional and global service chains, with special emphasis on services associated with regional and global value chains;
(e) to study actions in conjunction with the corresponding government agencies to support the digital trade of goods and services, improve connectivity and promote the formation of regional and global value chains;
(f) promote greater access to information on the opportunities offered by regional and global value chains for MSMEs;
(g) sharing methods and procedures for the collection of information, the use of indicators, and the analysis of trade statistics, and
(h) other matters to be agreed upon by the Parties.
6. The Parties may carry out cooperative activities in the areas indicated in paragraph 5 through:
(a) workshops, seminars, dialogues and other forums to exchange knowledge, experiences and best practices;
(b) the creation of a network of experts in regional and global value chains;
(c) internships, visits and research studies to document and study policies and practices;
(d) collaborative research and development of best practices on issues of mutual interest;
(e) specific exchanges of technical expertise and technical assistance, where appropriate, and
(f) other activities agreed upon by the Parties.
7. Priorities in cooperative activities shall be decided by the Parties based on their interests and available resources.
Article 15.4. Regional and Global Value Chain Committee
1. The Parties establish the Committee on Regional and Global Value Chains (hereinafter referred to as the "Committee") composed of representatives of government institutions responsible for regional and global value chains.
2. The Committee:
(a) determine, organize and facilitate the cooperative activities referred to in Article 15.3;
(b) make recommendations to the Administrative Commission on any matter related to this Chapter;
(c) facilitate the exchange of information on the experiences of each Party with respect to the establishment and implementation of policies, strategies and programs to promote the insertion of companies in regional and global value chains to achieve the greatest possible benefit under this Agreement;
(d) facilitate the exchange of information on experiences and lessons learned by the Parties through cooperative activities carried out under Article 15.3;
(e) discuss joint proposals to support policies for the insertion of the Parties in regional and global value chains;
(f) invite private sector entities, international economic forums, non-governmental organizations or other relevant institutions, as appropriate, to assist with the development and implementation of cooperative activities;
(g) consider matters related to the implementation and operation of this Chapter;
(h) upon request of a Party, consider and discuss any matter that may arise regarding the interpretation and application of this Chapter; and
(i) perform such other work as may be determined by the Parties.
3. The Committee shall meet annually unless otherwise agreed by the Parties, in person or by any other available technological means, to consider any matter arising under this Chapter.
4. The Committee and the Parties may exchange information and coordinate activities by e-mail, videoconference and other forms of communication.
5. In carrying out its responsibilities, the Committee may work with other committees, working groups and subsidiary bodies established under this Agreement.
6. The Parties may decide to invite experts or relevant organizations to the Committee meetings to provide information.
7. Within two (2) years of the first meeting of the Committee, the Committee shall review the implementation of this Chapter and shall report to the Administrative Commission.
8. Each Party shall make use of its existing mechanisms and, if appropriate, develop other mechanisms to publicly report activities carried out under this Chapter.
Article 15.5. Points of Contact
To facilitate communication between the Parties on the implementation of this Chapter, each Party designates the following Contact Point and shall promptly notify the other Party if there is any change in the contact point indicated below:
(a) in the case of Brazil, the Department of Regional Economic Integration of the
Ministry of Foreign Affairs, or its successor, and
(b) in the case of Chile, the Directorate of Bilateral Economic Affairs of the Directorate General of International Economic Relations, or its successor.
Article 15.6. Dialogue on Regional and Global Value Chains
The Parties shall make every effort, through dialogue, consultation and cooperation, to reach an understanding on any matter arising in connection with the interpretation and application of this Chapter.
Article 15.7. Non-Application of Dispute Resolution
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 16. Trade and Labour Issues
Article 16.1. Definitions
For the purposes of this Chapter:
ILO Declaration means the 1998 International Labour Organization (hereinafter referred to as "ILO") Declaration on Fundamental Principles and Rights at Work and its Follow-up;
Labour law means the laws and regulations, or provisions of laws and regulations, of a Party that are directly related to the following internationally recognized labour rights
(a) Freedom of association and the effective recognition of the right to bargain collective;
(b) The elimination of all forms of forced or compulsory labour;
(c) The effective abolition of child labour and, for the purposes of this Agreement, the prohibition of the worst forms of child labour;
(d) The elimination of discrimination in respect of employment and occupation; and
(e) Acceptable working conditions in respect of minimum wages, working hours, health and safety at work.
Article 16.2. Objectives
The objectives of this Chapter are:
(a) through dialogue and cooperation, strengthen the broader relationship between the Parties and facilitate the improvement of their capacities to deal with labor issues;
(b) progressively strengthen the welfare of the Parties' workforces through the promotion of sound labor policies and practices based on decent work and a better understanding of each Party's labor system;
(c) provide a forum to discuss and exchange views on labor issues of interest or concern to the Parties;
(d) promote the observance, dissemination and effective application of the national legislation of the Parties;
(e) develop information exchange and labor cooperation activities on mutually beneficial terms, and
(f) promote the participation of social actors in the development of public agendas through social dialogue.
Article 16.3. Shared Commitments
1. The Parties reaffirm their obligations as members of the ILO and their commitments under the ILO Declaration.
2. Recognizing the right of each Party to establish its own labor standards and, consequently, to adopt or amend its labor legislation, each Party shall endeavor to ensure that its laws establish labor standards consistent with internationally recognized labor rights.
3. The Parties shall promote the implementation of the 2011 United Nations Guiding Principles on Business and Human Rights.
4. The Parties recognize that it is inappropriate to establish or use their laws, regulations, policies and labor practices for protectionist trade purposes.
5. The Parties recognize that non-discrimination and gender equity are fundamental considerations in promoting inclusive and sustainable economic growth and in generating more employment opportunities, income and prospects for all citizens. Likewise, the Parties shall make efforts to adopt policies that remove systemic obstacles to the full participation of women and vulnerable groups in the labor market.
Article 16.4. Labor Rights
1. Each Party shall respect the sovereign right of the other Party to establish its own national policies and priorities and to establish, administer and control its labor laws and regulations.
2. Each Party shall adopt and maintain in its laws and regulations, as well as in the practices deriving therefrom, the following rights as set forth in the ILO Declaration:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labor;
(c) the effective abolition of child labor, and
(d) elimination of discrimination in respect of employment and occupation.
3. In addition, each Party shall adopt and maintain laws, regulations, as well as practices derived therefrom, regulating working conditions with respect to minimum wages, hours of work, and occupational safety and health.
Article 16.5. Non-derogation
The Parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection afforded by each Party's labor laws or by refraining from monitoring its labor laws. Accordingly, no Party may derogate from, or otherwise derogate from, or offer to derogate from, or otherwise derogate from, its labor laws or regulations implementing Article 16.4 if to do so would conflict with, weaken, or reduce adherence to a right set out in Article 16.4.2 or a condition of employment referred to in Article 16.4.3 in a manner that affects trade or investment between the Parties.
Article 16.6. Enforcement of Labor Laws
1. No Party shall fail to effectively enforce its labor 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.
2. Each Party retains the right to exercise reasonable discretion in enforcement and to make good faith decisions on the allocation of resources for labor enforcement activities relating to the core labor rights and acceptable working conditions listed in Article 16.4, provided that the exercise of that discretion and those decisions are not inconsistent with its obligations under this Chapter.
3. Nothing in this Chapter shall be construed to empower authorities of one Party to carry out labour law enforcement activities in the territory of the other Party.