(g) require financial institutions and DNFBPs to perform enhanced due diligence, in particular in relation to politically exposed persons, who are understood to be individuals who hold or have held prominent public functions within the territory of either Party or internationally as well as their family members and close associates; and
(h) ensure an effective supervision of the compliance with the above-mentioned obligations, including the establishment and enforcement of effective, proportionate and dissuasive sanctions for non-compliance.
Section IV. MEASURES TO PREVENT CORRUPTION IN THE PUBLIC SECTOR
12. Conduct of Public Officials
1. The Parties recognise the importance of the Conduct Principles for Public Officials of the Asia-Pacific Economic Cooperation (APEC), adopted on 3 July 2007, for Chile, and the Council of Europe Recommendation No. R (2000) 10 on codes of conduct for public officials, adopted on 11 May 2000, for the EU Party.
2. The Parties reaffirm their commitments under Article 8 of the UNCAC, including the application of codes or standards of conduct for public officials, facilitating the reporting by public officials of acts of corruption to appropriate authorities, requiring public officials to make declarations to appropriate authorities regarding potential conflicts of interests, and taking measures providing for disciplinary or other measures against public officials who violate such codes or standards.
13. Transparency In the Public Administration
1. The Parties stress the importance of transparency in public administration to prevent corruption affecting trade and investment and agree to promote transparency in line with the specific and horizontal provisions provided for in Part III of this Agreement, including in particular provisions on trade facilitation, public procurement, domestic regulation and general transparency.
2. The Parties reaffirm their commitments under paragraph 2 of Article 13 of the UNCAC to take appropriate measures to ensure that its anti-corruption bodies are known to the public and to provide access to those bodies for the reporting of any relevant incidents.
14. Participation of Civil Society
1. The Parties recognise the importance of the participation of civil society in the prevention of and the fight against corruption in the field of international trade and investment, as well as the need to raise public awareness regarding the existence, causes and gravity of and the threat posed by corruption. To that end they reaffirm their commitments under paragraph 1 of Article 13 of the UNCAC, in particular the commitment to take appropriate measures to promote the active participation of individuals and groups outside the public sector, such as civil society, non-governmental organisations, and community-based organisations.
2. The Parties shall, in particular, consider:
(a) undertaking public information activities and public education programmes that contribute to non-tolerance of corruption; and
(b) adopting or maintaining measures that respect, promote and protect the freedom to seek, receive, publish and disseminate information concerning corruption.
15. Protection of Reporting Persons
The Parties reaffirm their commitment under Article 33 of the UNCAC concerning protection against any unjustified treatment for reporting persons.
Section V. DISPUTE RESOLUTION MECHANISM
15. Dispute Resolution
1. The Parties shall make all possible efforts through dialogue, consultation, exchange of information and cooperation to address any disagreement between the Parties regarding the interpretation or application of this Protocol.
2. In case of a disagreement between the Parties regarding the interpretation or application of this Protocol, the Parties shall have recourse exclusively to the dispute resolution procedures established under Articles 17 and 18.
17. Consultations
1. A Party (the ‘requesting Party’) may, at any time, request consultations with the other Party (the ‘responding Party’) regarding any matter concerning the interpretation or application of this Protocol by delivering a written request to the contact point of the responding Party designated in accordance with Article 19(3). The request shall set out the reasons for requesting consultations, including a sufficiently specific description of the matter at issue and its relation to the provisions of this Protocol.
2. The responding Party shall, unless agreed otherwise with the requesting Party, reply in writing no later than 10 days after the date of delivery of the request referred to in paragraph 1.
3. The Parties shall, unless they agree otherwise, begin consultations no later than 30 days after the date of delivery of the request.
4. The consultations may be held in person or by any technological means available to the Parties. If consultations are held in person, they shall be held in the territory of the responding Party, unless the Parties agree otherwise.
5. In the consultations, the Parties shall:
(a) provide sufficient information to enable a full examination of the matter; and
(b) treat any information exchanged in the course of the consultations confidentially.
6. The Parties shall enter into consultations with the aim of reaching a mutually satisfactory resolution of the matter, taking into account opportunities for cooperation related to the matter.
7. If the Parties are unable to resolve the matter in accordance with paragraphs 3 to 6 within 60 days after the delivery of the request for consultations pursuant to paragraph 1, each Party may, by delivering a written request to the contact point of the other Party designated in accordance with Article 19(3), request that the Sub-Committee on Anti-Corruption on Trade and Investment referred to in Article 19 be convened to consider the matter. The Sub-Committee on Anti-Corruption on Trade and Investment shall convene promptly and endeavour to agree on a resolution of the matter.
8. Each Party or the Sub-Committee on Anti-Corruption on Trade and Investment seized pursuant to paragraph 7 may, if appropriate, seek the views of the Domestic Consultative Groups referred to in Article 40.6 of this Agreement or other expert advice.
9. If the Parties resolve the matter, they shall document any outcome including, if appropriate, specific steps and timelines agreed upon. The Parties shall make that outcome available to the public, unless they agree otherwise.
18. Panel of Experts
1. If, within 60 days after the delivery of a written request for consideration of the matter by the Sub-Committee on Anti-Corruption on Trade and Investment pursuant to Article 17(7) or, if no such request is made, within 120 days after the delivery of a written request for consultations pursuant to Article 17(1), no mutually satisfactory resolution has been reached, a Party may, by delivering a written request to the contact point of the other Party designated in accordance with Article 19(3), request the establishment of a panel of experts to examine the matter. The request shall identify the reasons for requesting the establishment of a panel of experts, including a description of the matter at issue, and explain how that matter constitutes a breach of the provisions of this Protocol that it considers applicable.
2. Except as otherwise provided for in this Article, Articles 38.6, 38.10, 38.13(6), 38.14(1), 38.15, 38.19, 38.20(2), 38.21, 38.22, 38.24, 38.32, 38.33, 38.34 and 38.35 of this Agreement, as well as Annexes 38-A and 38-B to this Agreement, apply to this Protocol, mutatis mutandis.
3. The Sub-Committee on Anti-Corruption on Trade and Investment shall, at its first meeting, recommend to the Joint Committee the establishment of a list of at least 15 individuals who are willing and able to serve on the panel of experts.
The list shall be composed of three sub-lists:
(a) one sub-list of individuals established on the basis of proposals by the EU Party;
(b) one sub-list of individuals established on the basis of proposals by Chile; and
(c) one sub-list of individuals that are not nationals of either Party and who are willing to serve as chairperson of the panel of experts.
Each Party shall propose at least five individuals for its sub-list. The Parties shall also select at least five individuals for the sub-list of chairpersons. The Joint Committee shall ensure that each sub-list is kept up to date and that it contains at least five individuals.
4. The individuals referred to in paragraph 3 shall have specialised knowledge of or expertise in matters covered by this Protocol or the resolution of disputes arising under international agreements. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government on issues related to the disagreement, or be affiliated with the government of either Party, and shall comply with Annex 38-B.
5. If the panel of experts is composed in accordance with the procedures set out in Article 38.6(3) and (4) of this Agreement, the experts shall be selected from the relevant individuals on the sub-lists referred to in paragraph 3 of this Article.
6. Unless the Parties agree otherwise, within five days of the date of establishment of the panel of experts, as defined in Article 38.6(5) of this Agreement, the terms of reference shall be:
‘to examine, in the light of the relevant provisions of the Protocol on the Prevention of and Fight Against Corruption of the Advanced Framework Agreement, the matter referred to in the request for the establishment of the panel of experts pursuant to Article 17 of that Protocol, and to issue a report, in accordance with that Article, with its findings and recommendations for the resolution of the matter’.
7. With regard to matters relating to the existing international agreements, recommendations or principles referred to in this Protocol, the panel of experts should, where relevant, seek information from the relevant organisations or bodies. Any such information shall be provided to the Parties for their comments.
8. The panel of experts shall interpret the provisions of this Protocol in accordance with the customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties.
9. The panel of experts shall issue to the Parties an interim report and a final report setting out the findings of facts, the applicability of the relevant provisions and the rationale behind those findings, and conclusions and the recommendations it makes.
10. The panel of experts shall deliver the interim report to the Parties within 100 days of the date of establishment of the panel of experts. If the panel of experts considers that that deadline cannot be met, the chairperson of the panel of experts shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel of experts plans to deliver its interim report. The time limits set out in this paragraph may be extended by mutual agreement of the Parties.
11. Each Party may deliver to the panel of experts a reasoned request to review particular aspects of the interim report within 25 days of its delivery. A Party may comment on the other Party's request within 15 days of the delivery of that request.
12. After considering those comments, the panel of experts shall prepare the final report. If the request referred to in paragraph 11 of this Article is not delivered within the time period referred to in that paragraph, the interim report shall become the final report of the panel of experts.
13. The panel of experts shall deliver its final report to the Parties within 175 days of the date of establishment of the panel of experts. If the panel of experts considers that that deadline cannot be met, its chairperson shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel of experts plans to deliver its final report. The time limits set out in this paragraph may be extended by mutual agreement of the Parties.
14. The final report shall include a discussion of any written request by the Parties on the interim report and clearly address the comments of the Parties.
15. The Parties shall make the final report available to the public within 15 days of its delivery by the panel of experts.
16. If the panel of experts finds in the final report that the responding Party has not conformed with its obligations under this Protocol, the Parties shall discuss appropriate measures to be implemented taking into account the report and recommendations of the panel of experts. The responding Party shall inform its Domestic Consultative Group referred to in Article 40.6 of this Agreement, and the other Party of its decisions on any measures to be implemented no later than three months after the final report has been made available to the public pursuant to paragraph 15 of this Article.
17. The Sub-Committee on Anti-Corruption on Trade and Investment shall monitor the follow-up to the report of the panel of experts and its recommendations. The Domestic Consultative Groups referred to in Article 40.6 of this Agreement may submit observations to the Sub-Committee on Anti-Corruption on Trade and Investment in that regard.
19. Sub-Committee on Anti-Corruption on Trade and Investment
1. The Sub-Committee on Anti-Corruption on Trade and Investment established pursuant to Article 8.8(1) of this Agreement (the ‘Sub-Committee’) shall be composed of representatives of each Party taking into consideration the specific issues to be addressed at any given session. The representatives of Chile shall be officials from the Undersecretariat of International Economic Relations of the Ministry of Foreign Affairs or its successor.
2. The Sub-Committee shall:
(a) facilitate and monitor the effective implementation of this Protocol and discuss any difficulties which may arise in its implementation;
(b) promote cooperation between the Parties on issues covered by this Protocol, and the exchange of information on developments in non-governmental, regional and multilateral fora on issues covered by this Protocol;
(c) make recommendations to the Joint Committee;
(d) consider any other matter related to this Protocol, as the Parties may agree.
3. Each Party shall designate a contact point within its administration to facilitate communication and coordination between the Parties on any matter relating to the implementation of this Protocol and notify the other Party of the contact details of that contact point. The Parties shall promptly notify each other of any changes to those contact details.
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
The European Union and its Member States and Chile make the following Joint Interpretative Declaration on the investment protection provisions contained in the Advanced Framework Agreement.
In light of their commitments under the Paris Agreement under the United Nations Framework Convention on Climate Change, done at Paris on 12 December 2015 (‘Paris Agreement’), the Parties confirm that their investors should expect that the Parties will adopt measures that are designed and applied to combat climate change, or address its present or future consequences, by means of mitigation, adaptation, reparation, compensation or otherwise.
When interpreting the provisions on investment protection provided for in the Advanced Framework Agreement, the Tribunal or Appeal Tribunal established under Article 17.34 and Article 17.35, respectively, should take due consideration of the commitments of the Parties under the Paris Agreement and their respective climate neutrality objectives.
Thus, the Parties confirm their understanding that the provisions on investment protection provided for in the Advanced Framework Agreement shall be interpreted and applied by that Tribunal or Appeal Tribunal by taking due consideration of the commitments of the Parties under the Paris Agreement and their respective climate neutrality objectives, and in a way that allows the Parties to pursue their respective climate change mitigation and adaptation policies.
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
The Parties,
RECALLING their shared values and the strong cultural, political, economic and cooperation ties which unite them,
RECALLING their commitment to modernise and replace the 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, signed in Brussels on 18 November 2002 to reflect new political and economic realities,
REAFFIRMING their commitment to strengthen cooperation on bilateral, regional and global issues of common concern,
CONVINCED that 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 (‘Advanced Framework Agreement’) and the Interim Agreement on Trade between the European Union and the Republic of Chile (‘Interim Trade Agreement’) will be beneficial to both Parties in fuelling economic recovery from the COVID-19 crisis, generating growth in a geopolitical context marked by heightened instability, and further strengthening their ties,
DETERMINED to ensure that the Advanced Framework Agreement fosters sustainability, so that economic growth goes together with the protection of decent work, the climate and the environment, in full adherence to the Parties' shared values and priorities, including support for green transition and promoting responsible and sustainable value chains, and
RECOGNISING that an inclusive involvement of civil society in the implementation of the Advanced Framework Agreement is essential for a timely identification of challenges, opportunities and priorities, and to monitor respective agreed actions, express their joint intent to swiftly conclude the Advanced Framework Agreement and subsequently cooperate on the implementation of its sustainability aspects guided by the following considerations:
1. As regards their joint objective of promoting high levels of labour protection and decent work for all, the Parties underline their commitment to respect, promote and effectively implement the internationally recognised core labour standards, as defined in the fundamental Conventions of the International Labour Organization (ILO). In that context, the Parties welcome the ILO decision to add the principle of a ‘safe and healthy working environment’ amongst the fundamental principles and rights at work, and to elevate the corresponding ILO Conventions accordingly, which they will strive to ratify as required.
2. As regards their joint objective of addressing the urgent threat of climate change, the Parties underline their commitment to effectively implement the United Nations Framework Convention on Climate Change and the Paris Agreement adopted thereunder, including their commitments with regard to their respective nationally determined contribution.
3. As regards their joint objective of protecting and conserving the environment and sustainably managing their natural resources, the Parties underline their commitment to effectively implement the multilateral environmental agreements and protocols to which they are respectively a party, including the Convention on Biological Diversity.
The Parties note that their joint objective of enhancing the inclusive participation of civil society and of regularly exchanging views with their respective Domestic Consultative Groups, including on relevant technical assistance projects, comprises the trade and sustainability aspects of the Advanced Framework Agreement. The Parties underline their commitment to promote and facilitate the interaction between their respective Domestic Consultative Groups through means which they consider appropriate, including periodical meetings. The Parties express their intention to support the Domestic Consultative Groups in line with their domestic legislation and policies.
As regards the implementation of Chapter 33, Trade and Sustainable Development, of the Advanced Framework Agreement (the ‘Trade and Sustainable Development Chapter’), the Parties will seek to focus on the commonly identified sustainability priorities. The Parties will seek the views and participation of civil society on matters related to the implementation of that Chapter, including on the follow-up of commitments taken by the Parties.
The Parties welcome that the European Union and Chile will, upon the entry into force of the Interim Trade Agreement, initiate a formal review process of that Agreement's trade and sustainable development aspects in accordance with Article 26.23 of that Agreement in order to consider the incorporation, as appropriate, of additional provisions that may be deemed relevant by the European Union or Chile at that time, including in the context of their respective domestic policy developments and their recent international treaty practice, as they may consider appropriate. Such additional provisions may relate, in particular, to the further enhancement of the enforcement mechanism of the Trade and Sustainable Development Chapter, including the possibility to apply a compliance phase, and relevant countermeasures as a last resort.
Without prejudice to the outcome of the review, the Parties take note that the European Union and Chile will also consider the possibility of including the Paris Agreement as an essential element of the Interim Trade Agreement.
The Parties recall that the European Union and Chile will aim to conclude the review process under the Interim Trade Agreement within 12 months, and to incorporate any agreed outcome of the review process by amending the Interim Trade Agreement in accordance with Article 33.9 thereof. The Parties will aim to also incorporate any agreed outcome of the review process under the Interim Trade Agreement into the Advanced Framework Agreement, by amending the Advanced Framework Agreement in accordance with Article 41.6 thereof.