Chapter 19. General Provisions
Article 19.1. Annexes and Appendices and the Footnotes
The annexes and appendices and the footnotes to this Agreement constitute an integral part of it.
Article 19.2. Relation to other International Agreements
1. The Parties confirm their rights and obligations existing between them in accordance with the WTO Agreement, the Montevideo t ratado 1980, other international agreements to which both parties are party, and regional or subregional integration arrangements involving the parties.
2. In the event of any inconsistency between the provisions of the treaties and agreements referred to in paragraph 1 and the provisions of this Agreement, the latter shall prevail to the extent of the inconsistency.
3. The Lima Treaty 1929 and its supplementary Protocol, the record of implementation of 13 November 1999 and its implementing regulations as well as the agreement between the enterprise and the enterprise Arica Port S.A. 1999 national ports and the Interinstitutional Agreement of 1999 on dispute settlement, prevail over the provisions of this Agreement.
Article 19.3. Succession of Agreements
Any reference to another international agreement shall be made on the same terms for a successor agreement to which the parties are party.
Article 19.4. Scope of Obligations
The Parties shall take all necessary measures to implement the provisions of this Agreement in their respective territories.
Article 19.5. Dissemination of Information
Nothing in this Agreement shall be construed as requiring a party to disclose or allow access to information the disclosure of which would be:
(a) Contrary to the public interest in accordance with its legislation;
(b) Contrary to its laws, including but not limited to the protection of privacy or the accounts and financial affairs of individual customers of financial institutions;
(c) Would impede law enforcement; or
(d) That might prejudice the legitimate commercial interests of particular public or private enterprises.
Article 19.6. Confidentiality
Where a Party providing information to another Party in accordance with the provisions of this Agreement and indicate that the information is confidential, the other Party shall maintain the confidentiality of that information. This information shall be used only for the purposes specified above, and will not be disclosed without the specific permission of the party providing the information, unless such information is to be disclosed in the context of judicial proceedings.
Article 19.7. Intellectual Property
The parties undertake to accord adequate protection to intellectual property, within their national legislation, undertaking to which the defence of such rights do not constitute unjustified barriers to bilateral trade.
Article 19.8. Public Policies
The Parties recognize that public pricing policies may have distortive effects on bilateral trade. Accordingly, agree not to resort to public pricing practices and policies mean that directly or indirectly a nullification or impairment of benefits arising from this Agreement.
Article 19.9. Coordination
The Parties shall encourage coordinated action in international economic forums and in connection with industrialized countries aimed at improving access for their products to the major international markets.
Article 20. Final Provisions
Article 20.1. Amendments Amendments and Additions
1. The parties may agree on any amendment or modification of or addition to this Agreement.
2. The amendments and additions and amendments, agreed previously approved in accordance with the applicable legal procedures of each Party, shall constitute an integral part of this Agreement.
Article 20.2. Amendment of the Wto Agreement
If any provision of the WTO agreement that the parties have incorporated into this Agreement is amended, the Parties shall consult on whether to amend this Agreement.
Article 20.3. Accession
1. In accordance with the Montevideo Treaty 1980, this Agreement shall be open for accession by negotiation prior to the other member countries of ALADI.
2. Accession shall be formalized once negotiated terms between the parties and the acceding country, through the conclusion of an additional protocol to this Agreement shall enter into force 30 days after being deposited with the General Secretariat of ALADI.
Article 20.4. Convergence
The Parties shall promote alignment of this Agreement integration agreements with other Latin American countries, in accordance with the mechanisms established in the Montevideo Treaty 1980.
Article 20.5. Future Negotiations
Public procurement
1. The Commission shall consider and propose administering during the first year of Entry into Force, the terms governing the negotiation of the Parties in the field of public procurement.
Financial Services
2. The Parties shall meet one year after the Entry into Force agreement to negotiate a chapter on Financial Services on a mutually advantageous basis. To this end, the competent authorities shall carry out the necessary coordination previously.
Free zones
3. For the purpose of assessing the possibility to confer any special treatment to goods produced or from a free zone under cover of the Agreement, the Commission within one year after administering Entry into Force will be the analysis of such special regimes in force in both countries.
Tourism
4. The parties agree to conclude an agreement for cooperation between their respective competent organs of the tourism sector to ensure, inter alia, the joint promotion of integrated circuits tourism from third countries and technical assistance.
Article 20.6. Entry Into Force
1. The entry Entry into Force of this Agreement is subject to the completion of necessary domestic legal procedures by each party.
2. This Agreement shall enter into force 60 days after the date of the last note in which a Party notifies the other that it has completed the procedures outlined above or within such other period as the parties agree.
Article 20.7. Denunciation
1. The party wishing to denounce this Agreement shall communicate its decision to the other party 180 days on notice of the deposit of instrument of the complaint before the General Secretary of ALADI.
2. After the conclusion of the complaint to the complaining party automatically cease the rights and obligations arising from this Agreement, except as regards the treatment received and granted for the import of products traded, which shall remain in force for a period of one year following the date of deposit of the instrument of denunciation, unless the complaint, the parties agree on a different period.
In WITNESS WHEREOF, the infraescritos, being duly authorized by their respective Governments, have signed this Agreement in duplicate equally authentic.
Conclusion
Done at Lima twenty-two days of August 2006.
The Government of the Republic of Peru:
José García Belaúnde, Minister of Foreign Affairs
Mercedes Aráoz Fernández, Minister for Trade and Tourism
The Government of the Republic of Chile:
Alejandro Foxley, Minister of Foreign Affairs
Carlos Furche, the Director General of International Economic Relations
Attachments
Annex I
1. A Party's Schedule indicates, in accordance with Articles 11.8 (Non-Conforming Measures) and 12.7 (Non-Conforming Measures), a Party's existing measures that are not subject to some or all of the obligations imposed by:
(a) Articles 11.2 or 12.3 (National Treatment);
(b) Articles 11.3 or 12.4 (Most-Favored-Nation Treatment);
(c) Article 12.5 (Non-Discriminatory Quantitative Restrictions);
(d) Article 12.6 (Local Presence)
(e) Article 11.6 (Performance Requirements);
(f) Article 11.7 (Senior Executives and Boards of Directors).
2. Each tab in the Annex sets out the following elements:
(a) Sector refers to the sector in general for which the record has been made;
(b) Sub-sector refers to the specific sector for which the record has been made;
(c) Obligations affected specifies the obligation(s), referred to in paragraph 1 that, by virtue of Articles 11.8.1(a) and 12.7.1(a), do not apply to the listed measure(s);
(d) Measures identifies the laws, regulations or other measures for which the record has been made. A measure cited in the Measures element:
(i) means the measure as modified, continued, or renewed, as of the date of entry into force of this Agreement, and
(ii) includes any action subordinate to, adopted or maintained under the authority of, and consistent with, such action;
(e) Description provides a general description of the Measures.
3. In interpreting a card, all elements of the card shall be considered. A fiche shall be interpreted in the light of the relevant provisions of the Chapter against which the fiche is taken. The Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements, considered as a whole, is so substantial and significant that it would be unreasonable to conclude that the Measures element should prevail; in this case, the other elements shall prevail to the extent of that discrepancy.
4. In accordance with Article 11.8.1(a) and 12.7.1(a), the articles of this Agreement specified in the Obligations Affected element of a tab do not apply to the law, regulation or other measure identified in the Measures element of that tab.
5. Where a Party maintains a measure requiring a service supplier to be a national, permanent resident, or resident in its territory as a condition for the supply of a service in its territory, an Annex tab made for that measure under Article 12.3, 12.4, or 12.6 shall operate as an Annex tab under Article 11.2, 11.3, or 11.6 with respect to that measure.
6. For the purposes of this Agreement, it shall be understood that formalities enabling the conduct of a business, such as measures requiring: registration under national law, an address, a legal representation, a license or operating permit, need not be listed in Annexes I and II with respect to Articles 11.2 and 12.3 (National Treatment) or 12.6 (Local Presence) of the Agreement, provided that the measure does not impose a requirement to establish an operating office or other ongoing business presence as a condition for the provision of the service in the country.
Annex I. List of Chile
Sector: All Sectors
Subsector:
Obligations affected: National Treatment (Article 11.2)
Measures: Decree Law 1939, Official Gazette, November 10, 1977, Rules on acquisition, administration and disposition of State property, Title I.
Decree with Force of Law 4 of the Ministry of Foreign Affairs, Official Gazette, November 10, 1967.
Description: Investment
Ownership or any other type of right over "State lands" may only be obtained by Chilean natural or juridical persons, unless the corresponding legal exceptions apply, such as Decree Law 1939. State lands for these purposes comprise State-owned lands up to a distance of 10 kilometers from the border and up to a distance of 5 kilometers from the coast.
Real estate located in areas declared "border zone" by virtue of Decree with Force of Law 4, of 1967, of the Ministry of Foreign Affairs, may not be acquired by ownership or any other title by (1) natural persons with nationality of border countries, (2) legal persons with their principal place of business in a border country, (3) legal persons with 40 percent or more of their capital belonging to natural persons with nationality of border countries, or (4) legal persons whose effective control is exercised by such natural persons. Notwithstanding the foregoing, the following may be exempted from such limitation, by Supreme Decree of the President of the Republic based on national interest reasons.
Sector: All Sectors
Subsector:
Obligations affected: National Treatment (Article 12.3) Local Presence (Article 12.6)
Measures: Decree with Force of Law 1 of the Ministry of Labor and Social Security, Official Gazette, January 24, 1994, Labor Code, Preliminary Title, Book I, Chapter III.
Decree with Force of Law 2 of the Ministry of Labor and Social Security, Official Gazette, October 29, 1967, article 5 letter c).
Civil Code, article 16, paragraph 3º.
Description: Cross-Border Trade in Services
At least 85 percent of the workers of the same employer must be Chilean individuals. This rule applies to employers with more than 25 workers with an employment contract. Expert technical personnel, who cannot be replaced by national personnel, will not be subject to this provision, as determined by the Directorate General of Labor.
A worker shall be understood as any natural person who renders intellectual or material services, under dependence or subordination, by virtue of an employment contract.
Whoever plays the role of employer must establish a representative or agent in the country, with residence and domicile within its territory, with sufficient powers and faculties to respond for the obligations imposed by the labor and social security legislation for such contract, as well as for the penalties that may be applied.
This same agent will be in charge of keeping and maintaining the usual labor and social security documentation concerning an employee, which would allow compliance with the legal control, as well as withholding and declaring or paying contributions for the same worker.
Sector: Services provided to companies
Subsector: Research services
Obligations affected: National Treatment (Article 12.3)
Measures: Supreme Decree 711 of the Ministry of Defense, Diario Oficial, October 15, 1975.
Description: Cross-border trade in services
Foreign natural and legal persons wishing to conduct research in the 200-mile maritime zone under national jurisdiction must submit a request 6 months in advance to the Hydrographic Institute of the Chilean Navy, and shall comply with the requirements established by the respective regulation. For such purpose, they shall submit a request at least 6 months prior to the date on which the research is intended to be initiated.
Sector: Services provided to companies
Subsector: Research services
Obligations affected: National Treatment (Article 12.3)
Measures: Decree with Force of Law 11 of the Ministry of Foreign Affairs, Official Gazette, December 5, 1968.
Decree 559 of the Ministry of Foreign Affairs, Official Gazette, January 24, 1968.
Decree with Force of Law 83 of the Ministry of Foreign Affairs, Official Gazette, March 27, 1979.
Description: Cross-border trade in services
Natural persons representing foreign juridical persons or natural persons domiciled abroad who wish to carry out explorations for scientific, technical or mountaineering work in border areas, shall request the corresponding authorization through a Chilean consul in the country of domicile of the natural person, who shall immediately and directly forward it to the Directorate of Borders and Limits of the State. The Directorate of State Borders and Limits may arrange for the expedition to include one or more representatives of the relevant Chilean activities, in order to participate in and become acquainted with the studies to be carried out.
The Operations Department of the Directorate of State Borders and Limits must decide and inform whether it authorizes or rejects geographic or scientific explorations planned to be carried out by foreign persons or organizations in Chile. The National Directorate of Frontiers and Boundaries of the State must authorize and control any exploration for scientific, technical or mountaineering purposes that foreign legal entities or foreign organizations, or natural persons domiciled abroad wish to carry out in border areas.
Sector: Services provided to companies
Subsector: Social science research services
Obligations affected: National Treatment (Article 12.3)
Measures: Law 17.288, Official Gazette, February 4, 1970, Title V.
Supreme Decree 484 of the Ministry of Education, Official Gazette, April 2, 1991.
Description: Cross-border trade in services
Foreign natural or legal persons wishing to carry out anthropological, archeological or paleontological excavations, surveys, soundings or collections must request the corresponding permit from the Council of National Monuments. It is a precondition for the permit to be granted that the person in charge of the research belongs to a reliable foreign scientific institution and that he/she works in collaboration with a Chilean state or university scientific institution.
Permits may be granted to (1) Chilean researchers with scientific archaeological, anthropological or paleontological training, as appropriate, duly accredited, who have a research project and proper institutional sponsorship; and (2) foreign researchers, provided they belong to a reliable scientific institution and work in collaboration with a Chilean state or university scientific institution. Curators and directors of museums recognized by the Consejo de Monumentos Nacionales, professional archaeologists, anthropologists or paleontologists, as appropriate, and members of the Sociedad Chilena de Arqueología shall be authorized to carry out salvage operations. Salvage operations are the urgent recovery of threatened archaeological, anthropological or paleontological data or species of imminent loss.
Sector: Printing, publishing and associated industries
Subsector:
Obligations affected: National Treatment (Articles 11.2 and 12.3)
Most-Favored-Nation Treatment (Articles 11.3 and 12.4) Local Presence (Article 12.6)
Senior Executives and Boards of Directors (Article 11.7)
Measures: Law 19.733, Official Gazette, June 4, 2001, Law on Freedom of Opinion and Information and the Practice of Journalism, Titles I and III.
Description: Investment and cross-border trade in services
The owner of a means of social communication, such as newspapers, magazines, or texts published on a regular basis with editorial direction in Chile, or a national news agency, in the case of a natural person, must have a duly established domicile in Chile and, in the case of a legal entity, must be incorporated with domicile in Chile or have an agency authorized to operate within the national territory. Only Chileans may be presidents, administrators or legal representatives of the legal entity. The legally responsible director and the person who replaces him must be Chilean with domicile and residence in Chile.
Sector: Communications
Subsector: Basic domestic or international long distance telecommunications services and intermediate services; telecommunications services; complementary telecommunications services; and limited telecommunications services.
Obligations affected: National Treatment (Article 11.2)
Most-Favored-Nation Treatment (11.3)
Measures: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II and III.
Description: Investment
A concession granted by Supreme Decree of the Ministry of Transportation and Telecommunications is required for the installation, operation and exploitation of public and intermediate telecommunications services in Chilean territory. Only legal entities incorporated under Chilean law may obtain such concessions.
A pronouncement from the Undersecretary of Telecommunications is required for the provision of complementary telecommunications services consisting of additional services provided through the connection of equipment to public networks. Said pronouncement refers to compliance with the technical regulations established by the Undersecretary of Telecommunications and the non-alteration of the essential technical characteristics of the networks, nor the use that they technologically allow, nor the modalities of the basic service provided with them.
A permit from the Undersecretary of Telecommunications is required for the installation, operation and development of limited telecommunications services.
International traffic must be routed through the facilities of a company holding a concession granted by the Ministry of Transportation and Telecommunications.
Sector: Communications