(e) cultural events;
(f) promotion of local culture;
(g) cultural management and production; and
(h) other areas.
Title IV. State Reform and Public Administration
Article 41. Public Administration
1. Cooperation in this area shall aim at the modernisation and decentralisation of public administration and encompass overall organisational efficiency and the legislative and institutional framework, drawing lessons from both Parties' best practices.
2. Such cooperation may involve programmes of the following types:
(a) modernisation of the State and of public administration;
(b) decentralisation and the strengthening of regional and local government;
(c) strengthening of civil society and its incorporation into the process of defining public policies;
(d) job creation and vocational training programmes;
(e) social service management and administration projects;
(f) development, rural housing or land management projects;
(g) health and primary education programmes;
(h) support for civil society and grass-roots initiatives;
(i) any other programmes and projects which help combat poverty by creating business and employment opportunities; and
(j) promotion of culture and its several manifestations and strengthening of cultural identities.
3. The means of cooperation in this area will be:
(a) technical assistance to Chilean policy-making and executive bodies, including meetings between staff of the European institutions and their Chilean counterparts;
(b) regular exchanges of information taking whatever form is appropriate, including the use of computer networks; personal data protection will be ensured in all areas where data are to be exchanged;
(c) transfers of know-how;
(d) preliminary studies and joint project implementation, involving comparable financial input; and
(e) training and organisational support.
Article 42. Inter-institutional Cooperation
1. The purpose of inter-institutional cooperation between the Parties is to promote closer cooperation between the institutions concerned.
2. To that end, Part III of this Agreement will seek to encourage regular meetings between these institutions; cooperation will be as broad as possible, and will include:
(a) any measures promoting regular exchanges of information, including the joint development of computerised communication networks;
(b) advice and training; and
(c) transfers of know-how.
3. The Parties may, by common agreement, include other, additional fields of action.
Title V. Social Cooperation
Article 43. Social Dialogue
The Parties recognise that:
(a) the participation of the social partners will be promoted as regards living conditions and integration into society,
(b) particular account will be taken of the need to avoid discrimination in the treatment of nationals of one Party residing legally in the territory of the other Party.
Article 44. Social Cooperation
1. The Parties recognise the importance of social development, which must go hand in hand with economic development. They will give priority to the creation of employment and respect for fundamental social rights, notably by promoting the relevant conventions of the International Labour Organisation covering such topics as the freedom of association, the right to collective bargaining and non-discrimination, the abolition of forced and child labour, and equal treatment between men and women.
2. Cooperation may cover any area of interest to the Parties.
3. Measures may be coordinated with those of the Member States and the relevant international organisations.
4. The Parties will give priority to measures aimed at:
(a) promoting human development, the reduction of poverty and the fight against social exclusion, by generating innovative and reproducible projects involving vulnerable and marginalised social sectors. Special attention will be paid to low-income families and disabled persons;
(b) promoting the role of women in the economic and social development process and promoting specific programmes for youth;
(c) developing and modernising labour relations, working conditions, social welfare and employment security;
(d) improving the formulation and management of social policies, including social housing, and improving access by beneficiaries;
(e) developing an efficient and equitable health system, based on solidarity principles;
(f) promoting vocational training and development of human resources;
(g) promoting projects and programmes which generate opportunities for the creation of employment within micro-, small and medium-sized enterprises;
(h) promoting programmes of land management with special attention to areas with higher social and environmental vulnerability;
(i) promoting initiatives contributing to social dialogue and the creation of consensus; and
(j) promoting respect for human rights, democracy and citizens' participation.
Article 45. Cooperation Related to Gender
1. Cooperation will contribute to strengthening policies and programmes that improve, guarantee and extend the equitable participation of men and women in all sectors of political, economic, social and cultural life. Cooperation will contribute to easing women's access to all necessary resources for the full exercise of their fundamental rights.
2. In particular, cooperation should promote the creation of an adequate framework to:
(a) ensure that gender and gender-related issues can be taken into account at every level and in all areas of cooperation including macroeconomic policy, strategy and development operations; and
(b) promote the adoption of positive measures in favour of women.
Title VI. Other Cooperation Areas
Article 46. Cooperation on Illegal Immigration
1. The Community and Chile agree to cooperate in order to prevent and control illegal immigration. To this end:
(a) Chile agrees to readmit any of its nationals illegally present on the territory of a Member State, upon request by the latter and without further formalities;
(b) and each Member State agrees to readmit any of its nationals, as defined for Community purposes, illegally present on the territory of Chile, upon request by the latter and without further formalities.
2. The Member States and Chile will also provide their nationals with appropriate identity documents for such purposes.
3. The Parties agree to conclude, upon request, an agreement between Chile and the Community regulating the specific readmission obligations of Chile and the Member States, including an obligation to readmit nationals of other countries and stateless persons.
4. Pending the conclusion of the agreement with the Community referred to in paragraph 3, Chile agrees to conclude, upon request of a Member State, bilateral agreements with individual Member States regulating the specific readmission obligations between Chile and the Member State concerned, including an obligation to readmit nationals of other countries and stateless persons.
5. The Association Council shall examine what other joint efforts can be made to prevent and control illegal immigration.
Article 47. Cooperation on Drugs and Combating Organised Crime
1. Within their respective competencies, the Parties undertake to coordinate and increase their efforts to prevent and reduce the illicit production of, trade in and consumption of drugs and the laundering of profits from drug-trafficking, and to combat related organised crime through the intermediary of international organisations and bodies.
2. The Parties will cooperate in this area to implement in particular:
(a) projects for the treatment, rehabilitation and family, social and labour reinsertion of drug addicts;
(b) joint training programmes relating to prevention of consumption and trafficking of narcotic drugs and psychotropic substances and related crimes;
(c) joint study and research programmes, using methodologies and indicators applied by the European Monitoring Centre for Drugs and Drug Addiction, the Inter-American Observatory of Drugs of the Organisation of American States and other international and national organisations;
(d) measures and cooperation actions aimed at reducing the supply of drugs and psychotropic substances, as part of the international conventions and treaties on the matter which have been signed and ratified by the Parties to this Agreement;
(e) information exchange on policies, programmes, actions and legislation linked to production, trafficking and consumption of narcotic drugs and psychotropic substances;
(f) exchange of relevant information and adoption of appropriate standards to combat money laundering comparable to those adopted by the European Union and the international bodies active in this field, such as the Financial Action Task Force on Money Laundering; and
(g) measures to prevent diversion of precursors and chemical substances essential to the illicit production of narcotic drugs and psychotropic substances, equivalent to those adopted by the European Community and competent international organisations and in accordance with the "Agreement between the Republic of Chile and the European Community on the prevention of the diversion of precursors and chemical substances frequently used in the illicit manufacture of narcotic drugs or psychotropic substances" of 24 November 1998.
Title VII. General Provisions
Article 48. Participation of Civil Society In Cooperation
The Parties recognise the complementary role and potential contribution of civil society (social interlocutors and Non Governmental Organisations) in the cooperation process. To that end, subject to the legal and administrative provisions of each Party, civil society actors may:
(a) be informed about and participate in consultations on cooperation policies and strategies, including strategic priorities, particularly in the areas concerning or directly affecting them;
(b) receive financial resources, insofar as the internal rules of each Party allow it; and
(c) participate in the implementation of cooperation projects and programmes in the areas that concern them.
Article 49. Regional Cooperation and Regional Integration
1. Both Parties should use all existing cooperation instruments to promote activities aimed at developing an active and reciprocal cooperation between the Parties and the Mercado Común del Sur (Mercosur) as a whole.
2. This cooperation will be an important element in the Community's support for the promotion of regional integration among the Southern Cone countries of Latin America.
3. Priority will be given to operations aimed at:
(a) promoting trade and investment in the region;
(b) developing regional cooperation on the environment;
(c) encouraging development of the communications infrastructure required for the economic development of the region; and
(d) developing regional cooperation on fisheries matters.
4. The Parties will also cooperate more closely on regional development and land-use planning.
5. To this end, they may:
(a) undertake joint action with regional and local authorities in the area of economic development; and
(b) set up mechanisms for the exchange of information and know-how.
Article 50. Triangular and Bi-regional Cooperation
1. The Parties recognise the value of international cooperation for the promotion of equitable and sustainable development processes and agree to give impetus to triangular cooperation programmes and programmes with third countries in areas of common interest.
2. This cooperation may also be applied to bi-regional cooperation in accordance with the priorities of Member States and other countries of Latin America and the Caribbean.
Article 51. Future Developments Clause
Within the Parties' respective competencies, no opportunity for cooperation should be ruled out in advance and the Parties could use the Association Committee to explore together the practical possibilities for cooperation in their mutual interest.
Article 52. Cooperation Within the Association Relationship
1. Cooperation between the Parties should contribute to achieving the general objectives of Part III of this Agreement by identifying and developing innovative cooperation programmes capable of providing added value to their new relationship as associated partners.
2. The participation of each Party as an associated partner in framework programmes, specific programmes and other activities of the other Party shall be promoted, in so far as it is permitted by each Party's internal rules governing access to the programmes and activities concerned.
3. The Association Council may make recommendations to that effect.
Article 53. Resources
1. With the aim of contributing to fulfilling the cooperation objectives established in this Agreement, the Parties commit themselves to providing, within the limits of their capacities and through their own channels, the appropriate resources, including financial resources.
2. The Parties shall take all appropriate measures to promote and facilitate the European Investment Bank's activities in Chile, in accordance with its own procedures and financing criteria and with their laws and regulations, and without prejudice to the powers of their competent authorities.
Article 54. Specific Tasks of the Association Committee In Cooperation Matters
1. When the Association Committee performs any of the tasks conferred upon it in Part III of this Agreement, it shall be composed of representatives of the Community and Chile with responsibility for cooperation matters, normally at senior official level.
2. Notwithstanding the provisions of Article 6, the Association Committee shall have, in particular, the following functions:
(a) assist the Association Council in the performance of its functions regarding cooperation related matters;
(b) supervise the implementation of the cooperation framework agreed between the Parties;
(c) make recommendations on the strategic cooperation between the Parties, which shall serve to set long-term objectives, the strategic priorities and specific fields for action, on the multiannual indicative programmes, which shall contain a description of sectoral priorities, specific objectives, expected results and indicative amounts, and annual action programmes; and
(d) report regularly to the Association Council on the application and fulfilment of the objectives and matters of Part III of this Agreement.
Part IV. TRADE AND TRADE-RELATED MATTERS
Title I. General Provisions
Article 55. Objectives
(a) the progressive and reciprocal liberalisation of trade in goods, in conformity with Article XXIV of General Agreement on Tariffs and Trade 1994 ("the GATT 1994");
(b) the facilitation of trade in goods through, inter alia, the agreed provisions regarding customs and related matters, standards, technical regulations and conformity assessment procedures, sanitary and phytosanitary measures and trade in wines and spirit drinks and aromatised drinks;
(c) the reciprocal liberalisation of trade in services, in conformity with Article V of General Agreement on Trade in Services ("the GATS");
(d) the improvement of the investment environment and, in particular, the conditions of establishment between the Parties, on the basis of the principle of non-discrimination;
(e) the liberalisation of current payments and capital movements, in conformity with the commitments undertaken in the framework of the international financial institutions and with due consideration for each Party's currency stability;
(f) the effective and reciprocal opening of the government procurement markets of the Parties;
(g) the adequate and effective protection of intellectual property rights, in accordance with the highest international standards;
(h) the establishment of an effective cooperation mechanism in the field of competition; and
(i) the establishment of an effective dispute settlement mechanism.
Article 56. Customs Unions and Free Trade Areas
1. Nothing in this Agreement shall preclude the maintenance or establishment of customs unions, free trade areas or other arrangements between either of the Parties and third countries, insofar as they do not alter the rights and obligations provided for in this Agreement.
2. At the request of a Party, consultations between them shall take place within the Association Committee concerning agreements establishing or adjusting customs unions or free trade areas and, where required, on other major issues related to the Parties' respective trade policies with third countries. In particular, in the event of accession, such consultation shall take place so as to ensure that account can be taken of the mutual interests of the Parties.
Title II. FREE MOVEMENT OF GOODS
Article 57. Objective
The Parties shall progressively and reciprocally liberalise trade in goods over a transitional period starting from the entry into force of this Agreement, in accordance with the provisions of this Agreement and in conformity with Article XXIV of the GATT 1994.
Chapter I. Elimination of Customs Duties
Section 1. Common Provisions
Article 58. Scope
1. The provisions of this Chapter concerning the elimination of customs duties on imports shall apply to products originating in one Party and exported to the other Party. For the purposes of this Chapter, "originating" means qualifying under the rules of origin set out in Annex III.
2. The provisions of this Chapter concerning the elimination of customs duties on exports shall apply to all goods exported from one Party to the other Party.
Article 59. Customs Duty
A customs duty includes any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but does not include any:
(a) internal taxes or other internal charges imposed consistently with Article 77;
(b) antidumping or countervailing duties applied consistently with Article 78;
(c) fees or other charges imposed consistently with Article 63.
Article 60. Elimination of Customs Duties
1. Customs duties on imports between the Parties shall be eliminated in accordance with the provisions of Articles 64 to 72.
2. Customs duties on exports between the Parties shall be eliminated as from the date of entry into force of this Agreement.
3. For each product, the basic customs duty to which the successive reductions are to be applied pursuant to Articles 64 to 72 shall be that specified in each Party's Tariff Elimination Schedule set out in Annexes I and II, respectively.
4. If a Party reduces its applied most favoured nation customs duty rate after the entry into force of this Agreement and prior to the ending of the transitional period, the Tariff Elimination Schedule of that Party shall apply to the reduced rates.
5. Each Party declares its readiness to reduce its customs duties more rapidly than is provided for in Articles 64 to 72, or otherwise improve the conditions of access under such Articles, if its general economic situation and the situation of the economic sector concerned so permit. A decision by the Association Council to accelerate the elimination of a customs duty or otherwise improve conditions of access shall supersede the terms established in Articles 64 to 72 for the product concerned.
Article 61. Standstill
1. No new customs duties shall be introduced nor shall those already applied be increased in trade between the Parties as from the date of entry into force of this Agreement.
2. Nothwithstanding paragraph 1, Chile may maintain its price band system as established in Article 12 of Law 18,525 or succeeding system for the products covered by that law, provided it is applied consistently with Chile's rights and obligations under the WTO Agreement and in a manner that does not afford more favourable treatment to imports of any third country, including countries with which Chile has concluded or will conclude in the future an agreement notified under Article XXIV of the GATT 1994.