(f) environment-related transport issues;
(g) low carbon or carbon free transport solutions, research and innovation, smart and digital solutions;
(h) expert dialogue and cooperation within international transport fora;
(i) sustainable transport solutions, including in relation to urban mobility; and
(j) trade facilitation, increased efficiency and optimisation of transport and logistics operations through digitalisation and simplification of reporting requirements across all transport modes.
CHAPTER 6
OTHER AREAS
Article 6.1
Macroeconomic policies
The Parties shall cooperate and promote the exchange of information and views on macroeconomic policies and trends.
Article 6.2
Tax matters
The Parties recognise and commit to implement the principles of good governance in the tax area, including the global standards on transparency, exchange of information and the minimum standards against the base erosion and profit shifting (BEPS), as well as to eliminate harmful tax practices. The Parties will promote a level playing field and work towards improving international cooperation in the tax area in order to prevent tax avoidance and evasion.
Article 6.3
Consumer policy
The Parties recognise the importance of ensuring a high level of consumer protection and shall, to that end, endeavour to cooperate in the field of consumer policy. The Parties agree that such cooperation may involve, to the extent possible:
(a) exchanging information on their respective consumer protection frameworks, including on consumer laws, consumer product safety, consumer redress and the enforcement of consumer legislation;
(b) encouraging the development of independent consumer associations and contacts between consumer representatives.
Article 6.4
Public health
The Parties agree to cooperate in public health matters, in particular as regards the prevention and control of communicable diseases, preparedness to fight outbreaks of highly pathogenic diseases, the enforcement of the International Health Regulations (2005), adopted on 23 May 2005 by the World Health Assembly, and combating antimicrobial resistance.
Article 6.5
Cooperation in sport and physical activity
The Parties will cooperate in the field of sport and physical activity as a way to contribute to the development of an active and healthy lifestyle, including promoting health-enhancing physical activity in all age groups, promoting social roles and educational values of sport, and fighting against threats against sport, such as doping, match fixing, racism and violence.
CHAPTER 7
MODERNISATION OF THE STATE AND THE PUBLIC SERVICE, DECENTRALISATION, REGIONAL POLICY AND INTERINSTITUTIONAL COOPERATION
Article 7.1
State modernisation
In the context of their political dialogue and cooperation, the Parties will work towards the exchange of experiences in matters related to the modernisation and decentralisation of the State and the public administration, drawing lessons from the best practices of the Parties in global organisational effectiveness and the existing legislation and institutional framework with the aim of achieving good governance, including the following:
(a) recognition of the autonomy and the role of Supreme Audit Institutions in promoting good governance at all levels by ensuring efficiency, accountability, effectiveness and transparency;
(b) promotion of transparency and accountability in public policies and decision making with regard to their citizenry, and the strengthening of the role of civil society in this field;
(c) promotion of a culture of integrity and probity in the public service that encompasses society as a whole, in collaboration with the private sector and civil society;
(d) promotion, support and encouragement of innovation in the public sector, providing solutions to the problems and challenges of its different levels and areas of work, so that they generate public value in the innovation ecosystem and society.
Article 7.2
Regional policy and decentralisation
1. The Parties recognise the importance of policies intended to promote balanced and sustainable regional and territorial development. The Parties acknowledge the importance of regions and of work with subnational governments, and how they can add important knowledge about public policies in line with the requirements of the future decentralisation of Chile.
2. The Parties will cooperate, whenever possible, with a view to improving systems of governance at different levels, capacity building through exchanges of experiences and practices and mutual learning, on sustainable solutions for territorial and regional development challenges, on policies aiming at the promotion of social, economic and territorial cohesion, including cross-border cooperation, on setting up and implementing regional policy and organising territorial development strategies and on partnership issues, planning and evaluation procedures and methods, regional innovation and smart specialisation policies.
3. The Parties undertake to strengthen and expand, whenever possible, the dynamics and opportunities for collaboration between the regions of the European Union and the regions of Chile through the design and execution of joint programmes and projects aimed at developing, inter alia, regional and territorial development.
4. The Parties will seek to exchange experiences and good practices on the interrelations between decentralisation and regional policy implementation.
Article 7.3
Interinstitutional cooperation
1. The Parties undertake to encourage and facilitate closer dialogue and cooperation between the institutions concerned in any of the areas covered by this Agreement. For that purpose, the Parties will encourage contacts between the institutions of the Government of Chile and the public sector and other relevant institutions of Chile with their counterparts in the European Union to address the widest possible sectoral cooperation, which may include:
(a) the prevention of and the fight against corruption;
(b) organisational training and support;
(c) technical assistance provided to the institutions of Chile responsible for the generation, execution and evaluation of public policies and for the provision of information concerning such policies, including meetings of staff of the institutions of the European Union with counterparts from Chile;
(d) regular exchange of information, as deemed appropriate, including through the use of information communication technologies, and the development of information networks, while safeguarding the protection of personal data in all fields where data exchange is required;
(e) exchange of information and good practices regarding the digitalisation of State procedures related to the provision of services to citizens;
(f) transfer of specialised knowledge;
(g) preliminary studies and joint execution of projects involving proportionate financial contribution;
(h) development of action plans including focal points, timetables and assessment mechanisms;
(i) contribution to the generation of capabilities, competences and skills in the field of public innovation.
2. The Parties, by mutual agreement, may add other areas of action to those referred to in paragraph 1.
PART III
TRADE AND TRADE RELATED MATTERS
CHAPTER 8
GENERAL AND INSTITUTIONAL PROVISIONS
SECTION A
General Provisions
Article 8.1
Establishment of a free trade area
The Parties hereby establish a free trade area, in conformity with Article XXIV of GATT 1994 and Article V of GATS.
Article 8.2
Objectives
The objectives of this Part of this Agreement are:
(a) the expansion and the diversification of trade in goods, in conformity with Article XXIV of GATT 1994, between the Parties through the reduction or elimination of tariff and non-tariff barriers to trade;
(b) the facilitation of trade in goods, in particular through the provisions regarding customs and trade facilitation, standards, technical regulations, conformity assessment procedures, and sanitary and phytosanitary measures, while preserving the right of each Party to regulate to achieve public policy objectives;
(c) the liberalisation of trade in services, in conformity with Article V of GATS;
(d) the development of an economic climate which is conducive to increased investment flows, the improvement of the conditions of establishment on the basis of the principle of non-discrimination while preserving the right of each Party to adopt and enforce measures necessary to pursue legitimate policy objectives;
(e) the facilitation of trade and investment between the Parties, including through the free transfer of current payments and capital movements;
(f) the development of an environment favourable to investment by providing transparent, stable and predictable rules that guarantee fair treatment to investors and the establishment of a court system to solve investor-state disputes in an effective, fair and predictable manner;
(g) the effective and reciprocal opening of public procurement markets of the Parties;
(h) the promotion of innovation and creativity by ensuring the adequate and effective protection of intellectual property rights in accordance with the international obligations applicable between the Parties;
(i) the promotion of conditions fostering undistorted competition, in particular with regard to trade and investment between the Parties;
(j) the development of international trade in a manner that contributes to sustainable development in its economic, social and environmental dimensions; and
(k) the establishment of an effective, fair and predictable dispute settlement mechanism to resolve disputes regarding the interpretation and application of this Part of this Agreement.
Article 8.3
Definitions of general application
For the purposes of this Part of this Agreement, Annexes 9, 10-A to 10-E, 13-A to 13-H, 15-A, 15-B, 16-A, 16-B, 16-C, 17-A to 17-I, 19-A, 19-B, 19-C, 21-A, 21-B, 25, 28-A, 28-B, 29, 32-A, 32-B, 32-C, 38-A and 38-B and the Protocols to this
Agreement:
(a) ‘Agreement on Agriculture’ means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
(b) ‘Anti-Dumping Agreement’ means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade in Annex 1A to the WTO Agreement;
(c) ‘customs duty’ means any duty or charge of any kind imposed on or in connection with the importation of a good, not including any:
(i) charge equivalent to an internal tax imposed in accordance with Article 9.4 of this Agreement;
(ii) anti-dumping, special safeguard, countervailing or safeguard duty applied in conformity with GATT 1994, the Anti-Dumping Agreement, the Agreement on Agriculture, the SCM Agreement and the Safeguards Agreement, as appropriate; and
(iii) fee or other charge imposed on or in connection with the importation that is limited in amount to the approximate cost of services rendered;
(d) ‘CPC’ means the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);
(e) ‘days’ means calendar days, including weekends and holidays;
(f) ‘existing’ means in effect on the date of entry into force of this Agreement;
(g) ‘GATS’ means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
(h) ‘GATT 1994’ means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(i) ‘good of a Party’ means a domestic good as that is understood in GATT 1994, and includes originating goods of that Party;
(j) ‘Harmonized System’ or ‘HS’ means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes and Subheading Notes, developed by the World Customs Organization;
(k) ‘heading’ means the first four digits in the tariff classification number under the Harmonized System;
(l) ‘juridical person’ means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately owned or publicly owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(m) ‘measure’ means any measure in the form of a law, regulation, rule, procedure, decision, administrative action, requirement, practice or any other form;
(n) ‘measure of a Party’ means any measure adopted or maintained by (2):
(i) governments and authorities at all levels;
(2) For greater certainty, ‘measure’ includes omissions of a Party to take actions that are necessary to fulfil its obligations under this Agreement.
(ii) non-governmental bodies in the exercise of powers delegated by governments or authorities at all levels (3); or
(iii) any entity which is in fact acting on the instructions of or under the direction or the control of a Party with regard to the measure (4);
(o) ‘natural person’ means:
(i) for the EU Party, a national of a Member State, according to its law (5); and
(ii) for Chile, a national of Chile, according to its law;
(p) ‘originating good’ means a good qualifying under the rules of origin set out in Chapter 10;
(q) ‘person’ means a natural person or a juridical person;
(r) ‘personal data’ means any information relating to an identified or identifiable natural person;
(s) ‘Safeguards Agreement’ means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
(t) ‘sanitary or phytosanitary measure’ means any measure referred to in paragraph 1 of Annex A to the SPS Agreement;
(u) ‘SCM Agreement’ means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
(v) ‘SPS Agreement’ means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
(w) ‘TBT Agreement’ means the Agreement on Technical Barriers to Trade in Annex 1 to the WTO Agreement;
(x) ‘TRIPS Agreement’ means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; and
(y) ‘WTO Agreement’ means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Article 8.4
Relation to the WTO Agreement and other existing agreements falling within the scope of this Part of this Agreement
1. The Parties affirm their rights and obligations with respect to each other under the WTO Agreement and other existing agreements falling within the scope of this Part of this Agreement to which they are party.
2. Nothing in this Agreement shall be construed as requiring either Party to act in a manner which is inconsistent with its obligations under the WTO Agreement.
(3) For greater certainty, the obligations of a Party under this Agreement shall apply to a State-owned enterprise or another person when it exercises any regulatory or administrative authority or other governmental authority delegated to it by that Party, such as the authority to expropriate, issue licences, approve commercial transactions or impose quotas, fees or other charges.
(4) For greater certainty, if a Party claims that an entity is acting as referred to in subparagraph (iii), that Party bears the burden of proof and must at least provide solid indicia.
(5) For the purposes of Chapters 17 to 27, the definition of a ‘natural person’ also includes a natural person permanently residing in the Republic of Latvia who is not a citizen of the Republic of Latvia or any other State but who is entitled, under the law of the Republic of Latvia, to receive a non-citizen passport.
3. In the event of any inconsistency between this Agreement and any existing agreement other than the WTO Agreement to which both Parties are party and which falls within the scope of this Part of this Agreement, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
SECTION B
Institutional Provisions
Article 8.5
Specific functions of the Joint Council acting in trade configuration
1. When the Joint Council established pursuant to Article 40.1 addresses issues related to this Part of this Agreement (6), it may:
(a) adopt decisions to amend:
(i) the tariff schedules in Appendices 9-1 and 9-2 in order to accelerate tariff dismantling;
(ii) Chapter 10 and Annexes 10-A to 10-E;
(iii) Annexes 13-F and 13-G, and Appendix 13-E-1;
(iv) Annexes 16-A, 16-D, 16-E, and paragraph 1 of Annex 16-B;
(v) Annex 21-B;
(vi) Annex 29;
(vii) the definition of ‘subsidy’ in Article 31.2(1) insofar as it relates to enterprises supplying services, with a view to incorporating the outcome of future discussions in the WTO or related plurilateral fora on that matter;
(viii) Annex 32-A as regards the references to the law applicable in the Parties;
(ix) Annex 32-B as regards the criteria to be included in the opposition procedure;
(x) Annex 32-C as regards the geographical indications;
(xi) Annexes 38-A and 38-B; and
(xii) any other provision, annex, appendix or protocol, the amendment of which is provided for in this Part of this Agreement;
(b) adopt decisions to issue interpretations of the provisions of this Part of this Agreement, which shall be binding on the Parties and all bodies established under this Part of this Agreement and the panels referred to in Chapters 33 and 38;
(c) establish additional Sub-Committees and other bodies responsible for matters falling within the scope of this Part of this Agreement pursuant to Article 40.3(3); and
(d) if it deems it appropriate, establish the rules of procedure of the Sub-Committees and other bodies established pursuant to Article 8.8 and subparagraph (c) of this paragraph.
2. The agenda of a meeting of the Joint Council acting in trade configuration shall be established by the coordinators for this Part of this Agreement, pursuant to Article 8.7(2).
(6) For greater certainty, Chile will implement any decisions adopted by the Joint Council acting in trade configuration through acuerdos de ejecución (executive agreements), in accordance with Chilean law.
Article 8.6
Specific functions of the Joint Committee acting in trade configuration
1. When the Joint Committee established pursuant to Article 40.2 addresses issues related to this Part of this Agreement (7), it shall:
(a) assist the Joint Council in the performance of its functions regarding trade and investment matters;
(b) be responsible for the proper implementation of this Part of this Agreement; in this respect, and without prejudice to the rights established under Chapter 38, a Party may refer for discussion within the Joint Committee any issue relating to the application or interpretation of this Part of this Agreement;
(c) oversee the further elaboration of the provisions of this Part of this Agreement as necessary and evaluate the results obtained from its application;