Title
Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part
Preamble
THE KINGDOM OF BELGIUM,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
IRELAND,
THE ITALIAN REPUBLIC,
THE GRAND DUCHY OF LUXEMBOURG,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the European Community and the Treaty on European Union, hereinafter referred to as the "Member States", and
THE EUROPEAN COMMUNITY, hereinafter referred to as "the Community",
of the one part, and
THE REPUBLIC OF CHILE, hereinafter referred to as "Chile", of the other part,
Considering the traditional links between the Parties and with particular reference to:
- the common cultural heritage and the close historical, political and economic ties which unite them;
- their full commitment to the respect for democratic principles and fundamental human rights as set out in the Universal Declaration of Human Rights;
- their attachment to the principles of the rule of law and of good governance;
- the need to promote economic and social progress for their peoples, taking into account the principle of sustainable development and environmental protection requirements;
- the desirability of enlarging the framework of relations between the European Union and the Latin American regional integration with a view to contributing to a strategic association between the two regions as foreseen in the Declaration adopted at the Summit of Heads of State and Government of Latin America and the Caribbean and the European Union in Rio de Janeiro on 28 June 1999;
- the importance of strengthening the regular political dialogue on bilateral and international issues of mutual interest, as already established in the Joint Declaration which is part of the Framework Cooperation Agreement between the Parties of 21 June 1996, hereinafter referred to as the "Framework Cooperation Agreement";
- the importance that the Parties attach to co-ordinating their positions and undertaking joint initiatives in the appropriate international fora;
- the importance that the Parties attach to the principles and values set out in the Final Declaration of the World Summit for Social Development held in Copenhagen in March 1995;
- the importance attached by the Parties to the principles and rules which govern international trade, in particular those contained in the Agreement establishing the World Trade Organisation (the "WTO") and to the need to apply them in a transparent and nondiscriminatory manner;
- the importance attached by the Parties to the fight against all forms of terrorism and the commitment to establish effective international instruments to ensure its eradication;
- the desirability of a cultural dialogue in order to achieve a better mutual understanding between the Parties, and to foster the existing traditional, cultural and natural links between the citizens of both Parties;
- the importance of the Cooperation Agreement between the European Community and Chile of 20 December 1990 and of the Framework Cooperation Agreement in sustaining and fostering the implementation of these processes and principles, the Parties have decided to conclude this Agreement:
Body
Part I. GENERAL AND INSTITUTIONAL PROVISIONS
Title I. Nature and Scope of the Agreement
Article 1. Principles
1. Respect for democratic principles and fundamental human rights as laid down in the Universal Declaration of Human Rights and for the principle of the rule of law underpins the internal and international policies of the Parties and constitutes an essential element of this Agreement.
2. The promotion of sustainable economic and social development and the equitable distribution of the benefits of the Association are guiding principles for the implementation of this Agreement.
3. The Parties reaffirm their attachment to the principle of good governance.
Article 2. Objective and Scope
1. This Agreement establishes a Political and Economic Association between the Parties, based on reciprocity, common interest and on the deepening of the relationship in all areas of application.
2. The Association is a process that will lead to a growing relationship and cooperation between the Parties structured around the bodies created in this Agreement.
3. This Agreement covers in particular the political, commercial, economic and financial, scientific, technological, social, cultural and cooperation fields. It may be extended to other areas to be agreed upon by the Parties.
4. In accordance with the objectives defined above, this Agreement provides for the following:
(a) the enhancement of political dialogue on bilateral and international matters of mutual interest, which will be conducted through meetings at different levels;
(b) the strengthening of cooperation in the political, commercial, economic and financial, scientific, technological, social, cultural and cooperation fields, as well as other areas of mutual interest;
(c) the participation of each Party in the framework programmes, specific programmes and other activities of the other Party shall be upgraded, in so far as permitted by each Party's internal procedures governing access to the programmes and activities concerned, in accordance with Part III of this Agreement; and
(d) the expansion and diversification of the Parties' bilateral trade relation in conformity with WTO provisions and with the specific objectives and provisions set out in Part IV of this Agreement.
Title II. Institutional Framework
Article 3. Association Council
1. An Association Council is hereby established, which shall supervise the implementation of this Agreement. The Association Council shall meet at ministerial level at regular intervals, not exceeding a period of two years, and extraordinarily whenever circumstances so require, if the Parties so agree.
2. The Association Council shall examine any major issue arising within the framework of this Agreement, as well as any other bilateral, multilateral or international question of common interest.
3. The Association Council shall also examine proposals and recommendations from the Parties for the improvement of this Agreement.
Article 4. Composition and Rules of Procedures
1. The Association Council shall be composed, on the one hand, of the President of the Council of the European Union, assisted by the Secretary General/High Representative, the incoming Presidency, other Members of the Council of the European Union or their representatives and Members of the European Commission, and, on the other hand, of the Minister of Foreign Affairs of Chile.
2. The Association Council shall establish its own rules of procedure.
3. Members of the Association Council may arrange to be represented, in accordance with the conditions laid down in its rules of procedure.
4. The Association Council shall be chaired in turn by a Member of the Council of the European Union and by the Minister of Foreign Affairs of Chile, in accordance with the provisions laid down in its rules of procedure.
Article 5. Decision-making Powers
1. The Association Council shall, for the purpose of attaining the objectives of this Agreement, have the power to take decisions in the cases provided for in this Agreement.
2. The decisions taken shall be binding on the Parties, which shall take all the measures necessary to implement them in accordance with each Party's internal rules.
3. The Association Council may also make appropriate recommendations.
4. The Association Council shall adopt decisions and recommendations by mutual agreement between the Parties.
Article 6. Association Committee
1. The Association Council shall be assisted in the performance of its duties by an Association Committee composed of representatives of the Members of the Council of the European Union and of the European Commission, on the one hand, and representatives of the Government of Chile, on the other, normally at senior officials level.
2. The Association Committee shall be responsible for the general implementation of this Agreement.
3. The Association Council shall establish the rules of procedure of the Association Committee.
4. The Association Committee shall have the power to take decisions in the cases provided for in this Agreement or where such power has been delegated to it by the Association Council. In this event the Association Committee shall take its decisions in accordance with the conditions laid down in Article 5.
5. The Association Committee shall generally meet once a year for an overall review of the implementation of this Agreement, on a date and with an agenda agreed in advance by the Parties, in Brussels one year and in Chile the next. Special meetings may be convened, by mutual agreement, at the request of either of the Parties. The Association Committee shall be chaired alternately by a representative of each of the Parties.
Article 7. Special Committees
1. The Association Council shall be assisted in the performance of its duties by the Special Committees established in this Agreement.
2. The Association Council may decide to set up any Special Committee.
3. The Association Council shall adopt rules of procedure which determine the composition and duties of such committees and how they shall function, insofar as not provided for by this Agreement.
Article 8. Political Dialogue
The political dialogue between the Parties shall be conducted within the framework provided for in Part II of this Agreement.
Article 9. Association Parliamentary Committee
1. An Association Parliamentary Committee is hereby established. It shall be a forum for members of the Chilean National Congress and the European Parliament to meet and exchange views. Is shall meet at intervals which it shall itself determine.
2. The Association Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Chilean National Congress, on the other.
3. The Association Parliamentary Committee shall establish its rules of procedure.
4. The Association Parliamentary Committee shall be chaired in turn by a representative of the European Parliament and a representative of the Chilean National Congress, in accordance with the provisions to be laid down in its rules of procedure.
5. The Association Parliamentary Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall supply the Committee with the requested information.
6. The Association Parliamentary Committee shall be informed of the decisions and recommendations of the Association Council.
7. The Association Parliamentary Committee may make recommendations to the Association Council.
Article 10. Joint Consultative Committee
1. A Joint Consultative Committee is hereby established with the task of assisting the Association Council to promote dialogue and cooperation between the various economic and social organisations of civil society in the European Union and those in Chile. Such dialogue and cooperation shall encompass all economic and social aspects of the relations between the Community and Chile, as they arise in the context of implementation of this Agreement. The Committee may express its view on questions arising in these areas.
2. It shall be composed of an equal number of members of the European Economic and Social Committee, on the one hand, and of members of the corresponding institution dealing with economic and social matters in the Republic of Chile, on the other.
3. The Committee shall carry out its activities on the basis of consultation by the Association Council or, for the purposes of promoting the dialogue between various economic and social representatives, on its own initiative.
4. The Joint Consultative Committee shall adopt its rules of procedure.
Article 11. Civil Society
The Parties will also promote regular meetings of representatives of the Chilean and the European Union's civil societies, including the academic community, social and economic partners, and non-governmental organisations in order to keep them informed on the implementation of this Agreement and gather their suggestions for its improvement.
Part II. POLITICAL DIALOGUE
Article 12. Objectives
1. The Parties agree to reinforce their regular dialogue on bilateral and international matters of mutual interest. They aim at strengthening and deepening this political dialogue with a view to consolidating the Association established by this Agreement.
2. The main objective of the political dialogue between the Parties is the promotion, dissemination, further development and common defence of democratic values, such as the respect for human rights, the freedom of the individual and the principles of the rule of law as the foundation of a democratic society.
3. To this end, the Parties shall discuss and exchange information on joint initiatives concerning any issue of mutual interest and any other international issue with a view to pursuing common goals, in particular, security, stability, democracy and regional development.
Article 13. Mechanisms
1. The Parties agree that their political dialogue shall take the form of:
(a) regular meetings between Heads of State and Government;
(b) periodic meetings between Foreign Ministers;
(c) meetings between other Ministers to discuss matters of common interest in cases in which the Parties consider that such meetings will result in closer relations;
(d) annual meetings between senior officials of both Parties.
2. The Parties shall decide on the procedures to be used for the above mentioned meetings.
3. The periodic meetings of Foreign Ministers referred to under paragraph 1(b) shall take place either within the Association Council established by Article 3 of this Agreement, or on other agreed occasions of an equivalent level.
4. The Parties will also make maximum use of diplomatic channels.
Article 14. Cooperation In the Field of Foreign and Security Policy
The Parties shall, as far as possible, coordinate their positions and undertake joint initiatives in the appropriate international fora, and cooperate in the field of foreign and security policy.
Article 15. Cooperation Against Terrorism
The Parties agree to cooperate in the fight against terrorism in accordance with international conventions and with their respective laws and regulations. They shall do so in particular:
(a) in the framework of the full implementation of Resolution 1373 of the United Nations Security Council and other relevant United Nations Resolutions, international conventions and instruments;
(b) by exchange of information on terrorist groups and their support networks in accordance with international and domestic law;
(c) by exchange of views on means and methods used to counter terrorism, including in technical fields and training, and by exchange of experiences in respect of terrorism prevention.
Part III. COOPERATION
Article 16. General Objectives
1. The Parties shall establish close cooperation aimed inter alia at:
(a) strengthening the institutional capacity to underpin democracy, the rule of law, and respect for human rights and fundamental freedoms;
(b) promoting social development, which should go hand in hand with economic development and the protection of the environment. The Parties will give particular priority to respect for basic social rights;
(c) stimulating productive synergies, creating new opportunities for trade and investment and promoting competitiveness and innovation;
(d) increasing the level of and deepening cooperation actions while taking into account the association relation between the Parties.
2. The Parties re-affirm the importance of economic, financial and technical cooperation, as means to contribute to implementing the objectives and principles derived from the present Agreement.
Title I. Economic Cooperation
Article 17. Industrial Cooperation
1. Industrial cooperation will support and promote industrial policy measures to develop and consolidate the Parties' efforts and establish a dynamic, integrated and decentralised approach to managing industrial cooperation, so as to create a favourable environment to serve their mutual interests.
2. The central aims will be:
(a) to boost contacts between the Parties' economic operators, with the aim of identifying sectors of mutual interest, especially in the area of industrial cooperation, transfers of technology, trade and investment;
(b) to strengthen and promote dialogue and exchanges of experience between networks of European and Chilean economic operators;
(c) to promote industrial cooperation projects, including projects deriving from the process of privatisation and/or opening-up of the Chilean economy; these could cover the establishment of forms of infrastructure stimulated by European investment through industrial cooperation between businesses; and
(d) to strengthen innovation, diversification, modernisation, development and product quality in businesses.
Article 18. Cooperation on Standards, Technical Regulations and Conformity Assessment Procedures
1. Cooperation on standards, technical regulations and conformity assessment is a key objective in order to avoid and reduce technical barriers to trade and to ensure the satisfactory functioning of trade liberalisation as provided for in Part IV, Title II.
2. Cooperation between the Parties will seek to promote efforts in:
(a) regulatory cooperation;
(b) compatibility of technical regulations on the basis of international and European standards; and
(c) technical assistance to create a network of conformity assessment bodies on a nondiscriminatory basis.
3. In practice, cooperation will:
(a) encourage any measures aimed at bridging the gaps between the Parties in the areas of conformity assessment and standardisation;
(b) provide organisational support between the Parties to foster the establishment of regional networks and bodies, and increase coordination of policies to promote a common approach to the use of international and regional standards and similar technical regulations and conformity assessment procedures; and
(c) encourage any measure aiming at improving convergence and compatibility between the respective system of the Parties in the above areas, including transparency, good regulatory practices and the promotion of quality standards for products and business practices.
Article 19. Cooperation on Small and Medium-sized Enterprises
1. The Parties will promote a favourable environment for the development of small and medium-sized enterprises (SMEs).
2. Cooperation shall consist, amongst other actions, in:
(a) technical assistance;
(b) conferences, seminars, prospecting for industrial and technical opportunities, participation in round tables and general and sectoral fairs;
(c) promoting contacts between economic operators, encouraging joint investment and establishing joint ventures and information networks through existing horizontal programs;
(d) facilitating access to finance, providing information and stimulating innovation.
Article 20. Cooperation on Services
In compliance with the WTO General Agreement on Trade in Services (the "GATS") and within the bounds of their own fields of competence, the Parties will support and intensify cooperation with each other, reflecting the growing importance of services in the development and growth of their economies. Cooperation aimed at promoting the development and diversification of productivity and competitiveness in Chile's service sector will be stepped up. The Parties will determine the sectors on which cooperation will concentrate, and they will also focus on the means available for this purpose. Activities will be directed particularly at SMEs and at facilitating their access to sources of capital and market technology. In that connection, special attention will be devoted to promoting trade between the Parties and third countries.