Chile - EU Advanced Framework Agreement (2023)
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Notwithstanding the above, Chile shall extend to the persons and investors of the other Party, and their investments, treatment no less favourable than that Party accords persons and investors of Chile, and their investments.

Existing Measures:

Sector:

Social services

Sub-Sector:

Obligations Concerned:

National treatment (Investment and CBTS)

Most-favoured-nation Treatment (Investment and CBTS)

Performance requirements (Investment)

Senior management and boards of directors (Investment)

Local presence (CBTS)

Description:

Investment and Cross-border trade in services

Chile reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, education, public training, health care and child care.

Existing Measures:

Sector:

Environmental services

Sub-Sector:

Obligations Concerned:

National treatment (CBTS)

Most-favoured-nation treatment (CBTS)

Local presence (CBTS)

Description:

Cross-border trade in services

Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water and sanitation services, such as sewage systems, waste disposal and waste-water treatment, shall only be supplied by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law.

This entry does not apply to consultancy services retained by such juridical persons.

Existing Measures:

Sector:

Construction services

Sub-Sector:

Obligations Concerned:

National treatment (CBTS)

Local presence (CBTS)

Description:

Cross-border trade in services

Chile reserves the right to adopt or maintain any measure with respect to the supply of construction services by foreign juridical persons or legal entities.

Such measures may include requirements such as residency, registration or any other form of local presence.

Existing Measures:

Sector:

Transportation

Sub-Sector:

International road transportation

Obligations Concerned:

National treatment (Investment and CBTS)

Most-favoured-nation treatment (Investment and CBTS)

Local presence (CBTS)

Description:

Investment and Cross-border trade in services

Chile reserves the right to adopt or maintain any measure relating to the international land transportation of cargo or passengers in border areas.

Additionally, Chile reserves the right to adopt or maintain the following limitations for the supply of international land transportation from Chile:

(a)

the service supplier must be a Chilean natural or juridical person;

(b)

the service supplier must have a real and effective domicile in Chile; and

(c)

in the case of juridical persons, the service supplier must be legally constituted in Chile and more than 50 % of its capital stock must be owned by Chilean nationals and its effective control must be by Chilean nationals.

Existing Measures:

Sector:

Transportation services

Sub-Sector:

Road transportation services

Obligations Concerned:

National treatment (CBTS)

Description:

Cross-border trade in services

Chile reserves the right to adopt or maintain any measure that authorises only Chilean natural or juridical persons to supply land transportation of persons or merchandise inside the territory of Chile (cabotage). For this, the enterprises shall use vehicles registered in Chile.

(1) A list of existing state companies in Chile can be found on the following website: http://www.dipres.gob.cl.

ANNEX 17-C. MARKET ACCESS COMMITMENTS

Headnotes

1.

The schedules of the Parties in Appendices 17-C-1 and 17-C-2 set out the market access commitments which each Party undertakes pursuant to Article 17.8 or 18.7 and the reservations taken by that Party with respect to existing or more restrictive or new measures that do not conform with obligations imposed by such provisions, under Article 17.14 or 18.8.

2.

For the purposes of this Annex, ‘ISIC’ means the International Standard Industrial Classification of all Economic Activities as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 4, ISIC REV 3.1, 2002.

3.

The economic activities in the sectors or subsectors covered by Chapters 17 and 18 and not inscribed in the schedules of the Parties are not covered by the market access commitments referred to in paragraph 1.

4.

The schedule of a Party is without prejudice to the rights and obligations of the Parties under GATS.

5.

Each entry in the schedules sets out the following elements:

(a)

‘sector’ refers to the general sector in which the entry is made;

(b)

‘subsector’ refers to the specific sector or activity in which commitments are undertaken in accordance with, if applicable, the CPC or ISIC; and

(c)

‘limitations on market access’ specifies the applicable limitations, including the possibility to maintain existing measures if so specified, or to adopt new or more restrictive measures if market access is unbound, that do not conform to the obligations set out in Article 17.8 or 18.7.

6.

A reservation taken at the level of the EU Party applies to a measure of the European Union, to a measure of a Member State at the central level or to a measure of a government within a Member State, unless the reservation excludes a Member State. A commitment or a reservation taken by a Member State applies to a measure of a government at the central, regional or local level within that Member State. For the purposes of the reservations of Belgium, the central level of government covers the federal government and the governments of the regions and the communities as each of them holds equipollent legislative powers. For the purposes of the reservations of the EU Party, a regional level of government in Finland means the Åland Islands. A reservation taken at the level of Chile applies to a measure of the central government or a local government.

7.

The schedules of the Parties only contain limitations on market access which are non-discriminatory. Discriminatory measures and requirements are set out in Annexes 17-A and 17-B.

8.

For greater certainty, non-discriminatory measures do not constitute a market access limitation within the meaning of Articles 17.8 or 18.7 for any measure:

(a)

requiring the separation of the ownership of infrastructure from the ownership of the goods or services provided through that infrastructure to ensure fair competition, for example in the fields of energy, transportation and telecommunications;

(b)

restricting the concentration of ownership to ensure fair competition;

(c)

seeking to ensure the conservation and protection of natural resources and the environment, including a limitation on the availability, number and scope of concessions granted, and the imposition of a moratorium or ban;

(d)

limiting the number of authorisations granted because of technical or physical constraints, for example telecommunications spectra and frequencies; or

(e)

requiring that a certain percentage of the shareholders, owners, partners, or directors of an enterprise be qualified or practice a certain profession such as lawyers or accountants.

9.

The list of reservations below does not include measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures where they do not constitute a limitation within the meaning of Article 17.8 or 18.7. Those measures may include, in particular, the need to obtain a licence, to satisfy universal service obligations, to have recognised qualifications in regulated sectors, to pass specific examinations, including language examinations, to fulfil a membership requirement of a particular profession, such as membership in a professional organisation, to have a local agent for service, or to maintain a local address, or any other non-discriminatory requirements that certain activities may not be carried out in protected zones or areas. Although they are not listed in this Annex, such measures continue to apply.

10.

Treatment granted to juridical persons established by investors of a Party in accordance with the law of the other Party (including, in the case of the EU Party, the law of a Member State) and having their registered office, central administration or principal place of business within that other Party, is without prejudice to any condition or obligation, pursuant to Chapter 17, which may have been imposed on such juridical person when it was established in that other Party, and which shall continue to apply.

11.

The schedules of the Parties apply only to the territories of the Parties in accordance with Article 41.2 and are only relevant in the context of trade relations between the EU Party and Chile. They do not affect the rights and obligations of the Member States under European Union law.

12.

The following abbreviations are used in the schedule of the EU Party:

EU European Union, including all its Member States

AT Austria

BE Belgium

BG Bulgaria

CY Cyprus

CZ Czechia

DE Germany

DK Denmark

EE Estonia

EL Greece

ES Spain

FI Finland

FR France

HR Croatia

HU Hungary

IE Ireland

IT Italy

LT Lithuania

LU Luxembourg

LV Latvia

MT Malta

NL Netherlands

PL Poland

PT Portugal

RO Romania

SE Sweden

SI Slovenia

SK Slovakia

EEA European Economic Area

Appendix 17-C-1. SCHEDULE OF THE EU PARTY

Sector or Subsector

Limitations on Market Access

III-EU-1 All sectors

(a)

Commercial presence

With respect to Investment:

In the EU: Services considered as public utilities at national or local level may be subject to public monopolies or to exclusive rights granted to private operators.

Public utilities exist in sectors such as related scientific and technical consulting services, research and development (R&D) services on social sciences and humanities, technical testing and analysis services, environmental services, health services, transport services and services auxiliary to all modes of transport. Exclusive rights on those services are often granted to private operators, for instance operators with concessions from public authorities, subject to specific service obligations. Given that public utilities often also exist at the sub-central level, detailed and exhaustive sector-specific scheduling is not practical. This reservation does not apply to telecommunications and to computer and related services.

In HU: Establishment should take a form of limited liability company, joint-stock company or representative office. Initial entry as a branch is not permitted except for financial services.

In IT: Unbound for the acquisition of equity stakes of companies operating in the fields of defence and national security. The acquisition of strategic assets in the fields of transport services, telecommunications and energy may be subject to the approval of the Presidency of the Council of Ministers' Office.

In LT: Unbound for enterprises, sectors, zones, assets and facilities of strategic importance to national security.

  • Chapter   17 INVESTMENT 13
  • Section   A General Provisions 13
  • Article   17.1 Scope 13
  • Article   17.2 Definitions 13
  • Article   17.3 Right to Regulate 14
  • Article   17.4 Relation to other Chapters 14
  • Article   17.5 Denial of Benefits 14
  • Article   17.6 Sub-Committee on Services and Investment 14
  • Section   B LIBERALISATION OF INVESTMENTS AND NON-DISCRIMINATION 14
  • Article   17.7 Scope 14
  • Article   17.8 Market Access 14
  • Article   17.9 National Treatment 14
  • Article   17.10 Public Procurement 14
  • Article   17.11 Most Favoured Nation Treatment 14
  • Article   17.12 Performance Requirements 14
  • Article   17.13 Senior Management and Boards of Directors 14
  • Article   17.14 Non-Conforming Measures 14
  • Section   C INVESTMENT PROTECTION 14
  • Article   17.15 Scope 14
  • Article   17.16 Investment and Regulatory Measures 14
  • Article   17.17 Treatment of Investors and of Covered Investments 14
  • Article   17.18 Treatment In Case of Strife 15
  • Article   17.19 Expropriation (42) 15
  • Article   17.20 Transfers (44) 15
  • Article   17.21 Subrogation 15
  • Article   17.22 Termination 15
  • Article   17.23 Relationship with other Agreements 15
  • Article   17.24 Responsible Business Conduct 15
  • Section   D RESOLUTION OF INVESTMENT DISPUTES AND INVESTMENT COURT SYSTEM 15
  • Subsection   I Scope and Definitions 15
  • Article   17.25 Scope and Definitions 15
  • Subsection   2 Alternative Dispute Resolution and Consultations 15
  • Article   17.26 Mediation 15
  • Article   17.27 Consultations and Amicable Resolution 15
  • Subsection   3 Submission of a Claim and Conditions Precedent 15
  • Article   17.28 Request for Determination of the Respondent 15
  • Article   17.29 Requirements for a Submission of a Claim 15
  • Article   17.30 Submission of a Claim 15
  • Article   17.31 Counterclaims 15
  • Article   17.32 Consent 16
  • Article   17.33 Third Party Funding 16
  • Subsection   4 Investment Court System 16
  • Article   17.34 Tribunal of First Instance 16
  • Article   17.35 Appeal Tribunal 16
  • Article   17.36 Ethics 16
  • Article   17.37 Multilateral Dispute Settlement Mechanisms 16
  • Subsection   5 Conduct of Proceedings 16
  • Article   17.38 Applicable Law and Rules of Interpretation 16
  • Article   17.39 Interpretation of Annexes 16
  • Article   17.40 Other Claims 16
  • Article   17.41 Anti-Circumvention 16
  • Article   17.42 Claims Manifestly without Legal Merit 16
  • Article   17.43 Claims Unfounded as a Matter of Law 16
  • Article   17.44 Transparency 16
  • Article   17.45 Interim Measures 16
  • Article   17.46 Discontinuance 16
  • Article   17.47 Security for Costs 16
  • Article   17.48 The Non-Disputing Party 16
  • Article   17.49 Intervention by Third Parties 16
  • Article   17.50 Expert Reports 16
  • Article   17.51 Indemnification and other Compensation 16
  • Article   17.52 Role of the Parties 16
  • Article   17.53 Consolidation 16
  • Article   17.54 Provisional Award 16
  • Article   17.55 Appeal Procedure 17
  • Article   17.56 Final Award 17
  • Article   17.57 Enforcement of Awards 17
  • ANNEX 17-A  RESERVATIONS FOR EXISTING MEASURES 36
  • Appendix 17-A-1  SCHEDULE OF THE EU PARTY 37
  • Appendix 17-A-2  SCHEDULE OF CHILE 46
  • ANNEX 17-B  RESERVATIONS FOR FUTURE MEASURES 48
  • Appendix 17-B-1  SCHEDULE OF THE EU PARTY 49
  • Appendix 17-B-2  SCHEDULE OF CHILE 55
  • ANNEX 17-C  MARKET ACCESS COMMITMENTS 57
  • Appendix 17-C-1  SCHEDULE OF THE EU PARTY 57
  • Appendix 17-C-2  SCHEDULE OF CHILE 61
  • ANNEX 17-D  EXPROPRIATION 63
  • ANNEX 17-E  TRANSFERS – CHILE (1) 63
  • ANNEX 17-F  AGREEMENTS BETWEEN MEMBER STATES AND CHILE REFERRED TO IN ARTICLE 17.23 63
  • ANNEX 17-G  PUBLIC DEBT 64
  • ANNEX 17-H  MEDIATION MECHANISM FOR INVESTOR-TO-STATE DISPUTES 64
  • ANNEX 17-I  CODE OF CONDUCT FOR JUDGES, MEMBERS AND MEDIATORS 64
  • PROTOCOL TO THE ADVANCED FRAMEWORK AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF CHILE, OF THE OTHER PART ON THE PREVENTION OF AND FIGHT AGAINST CORRUPTION 64
  • Section   I GENERAL PROVISIONS 64
  • 1 Objectives 64
  • 2 Scope 64
  • 3 Relation to other Agreements 64
  • JOINT INTERPRETATIVE DECLARATION ON THE PROVISIONS ON INVESTMENT PROTECTION CONTAINED IN THE ADVANCED FRAMEWORK AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF CHILE, OF THE OTHER PART 64
  • JOINT STATEMENT ON THE PROVISIONS ON TRADE AND SUSTAINABLE DEVELOPMENT CONTAINED IN THE ADVANCED FRAMEWORK AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF CHILE, OF THE OTHER PART 64