Chile - Peru FTA (2006)
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Subsector: Archaeological research services

Obligations affected National Treatment (Article 12.3)

Measures Supreme Resolution No. 004-2000-ED, Diario Oficial "El Peruano" of January 25, 2000, Reglamento de Investigaciones Arqueológicas, article 30.

Description Cross-Border Trade in Services

Archaeological research projects directed by a foreign archaeologist must have an archaeologist with accredited experience of Peruvian nationality and registered in the National Register of Archaeologists as co-director or scientific sub-director of the project. The co-director or sub-director will necessarily participate in the integral execution of the project (field and office work).

Sector Energy-related services

Subsector:

Obligations affected National Treatment (Article 12.3) Local Presence (Article 12.6)

Measures Law No. 26221, Official Gazette "El Peruano" of August 19, 1993, General Hydrocarbons Law, Article 15.

Description Cross-Border Trade in Services

In order to enter into exploration contracts, foreign companies must establish a branch or incorporate a company in accordance with the General Companies Law, establish domicile in the capital of the Republic of Peru and appoint an agent of Peruvian nationality. Foreign natural persons must be registered in the Peruvian Registry of Companies.

Public and appoint an attorney-in-fact of Peruvian nationality, with domicile in the capital of the Republic of Peru.

Sector: Professional Services

Subsector: Audit services

Obligations affected: National Treatment (Article 12.3) Local Presence (Article 12.6)

Measures: Internal Regulations of the Lima Association of Public Accountants, articles 145 and 146.

Description: Cross-Border Trade in Services

The auditing companies shall be constituted solely and exclusively by certified public accountants resident in the country and duly qualified by the Association. No partner may be an integral member of another audit firm in Peru.

Sector: Aircraft leasing or rental services

Subsector: Air transportation

Obligations affected: National Treatment (Articles 11.2 and 12.3)

Measures: Law No. 28525, Official Gazette "El Peruano" of May 25, 2005, Law for the Promotion of Air Transportation Services, Article 5.

Law No. 27261, Official Gazette "El Peruano" of May 10, 2000, Civil Aeronautics Law, Article 67 (amended by Article 5 of Law No. 28525).

Description: Investment and Cross-Border Trade in Services

Civil aviation performed under the charter modality has a complementary character. In the case of operations carried out by national air operators that provide international scheduled air transport service of passengers, cargo and mail (mixed), using aircraft under charter contracts with foreign companies, shall be authorized under the following grounds:

(1) When air operations are being initiated on a new route, in which case it will be authorized for a maximum of 90 calendar days, extendable for 90 additional calendar days, subject to the air operator's support.

(2) When there is a legal restriction that prevents a Peruvian company's aircraft from operating by its own means in another State, the charter will be approved exclusively for the routes and for the term of the restriction.

(3) When there is a technical impediment of an aircraft that may imply a paralyzation of regular operations. The authorization period shall not exceed 90 calendar days, and may be extended after a favorable report from the Aviation Safety Directorate of the General Directorate of Civil Aeronautics.

For public necessity or national interest, domestic air transportation service operators may be authorized to enter into aircraft charter contracts with foreign companies to provide services within the national territory.

This authorization will be granted by supreme decree, at the proposal of the sector.

Sector: Transportation

Subsector: Land transportation by road

Obligations affected: National Treatment (Article 12.2)

Measures: Agreement on International Land Transportation, subscribed between the Governments of the Republic of Chile, the Republic of Argentina, the Republic of Bolivia, the Federative Republic of Brazil, the Republic of Paraguay, the Republic of Peru and the Oriental Republic of Uruguay - ATIT, signed in Montevideo on January 1, 1990.

Description: Cross-Border Trade in Services

Chilean vehicles, authorized by Peru in accordance with the ATIT, that carry out international road transportation, may not carry out local transportation (cabotage) in Peruvian territory.

Annex II

1. A Party's Schedule indicates, in accordance with Articles 10.8 (Investment - Nonconforming Measures) and 11.7 (Cross-Border Trade in Services - Nonconforming Measures), the sectors, subsectors, or specific activities for which it may maintain or adopt new or more restrictive measures that are inconsistent with the obligations imposed by:

(a) Articles 10.2 or 11.3 (National Treatment);

(b) Articles 10.3 or 11.4 (Most favored nation treatment);

(c) Article 11.5 (Non-discriminatory quantitative restrictions);

(c) Article 11.6 (Local presence);

(d) Article 10.6 (Performance Requirements);

(e) Article 10.7 (Senior Management and Boards of Directors).

2. Each tab in the annex sets out the following elements:

(a) Sector refers to the sector for which the record has been made;

(b) Sub-sector refers to the specific sector for which the record has been made;

(c) Obligations concerned specifies the obligation(s) referred to in paragraph 1 that, by virtue of Articles 10.8(2) and 11.7(2), do not apply to the sectors, subsectors or activities listed in the fiche;

(d) Description describes the coverage of the sectors, subsectors, or activities covered by the fiche; and

(e) Measures in force identifies, for transparency purposes, the measures in force that apply to the sectors, subsectors or activities covered by the fact sheet.

3. In the interpretation of a reservation all its elements will be considered. The Description element shall prevail over the other elements.

4. In accordance with Articles 10.8(2) and 11.7(2), the Articles of this Treaty specified in the Obligations Concerned element of a schedule do not apply to the sectors, subsectors and activities mentioned in the Description element of that schedule.

5. For the purposes of this Agreement, it shall be understood that formalities enabling the conduct of a business, such as measures requiring: registration under domestic law, an address, a legal representation, a license or operating permit, need not be reserved in Annexes I and II with respect to Articles 10.2 and 11.3 (National Treatment) or 11.6 (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 II. List of Chile

Sector: All Sectors

Subsector:

Obligations affected: National Treatment (Article 11.2)

Most-Favored-Nation Treatment (Article 11.3)

Description: Investment

Chile reserves the right to adopt or maintain any measure relating to residency requirements for the ownership, by investors of the other Party or their investments, of coastal lands.

A Chilean natural person, a person resident in Chile or a Chilean juridical person may acquire or control land used for agriculture. Chile otherwise reserves the right to adopt or maintain any measure relating to the ownership or control of such land. In the case of a juridical person, a majority of each class of shares may be required to be owned by Chilean natural persons or persons resident in Chile. A person who resides in Chile 183 days a year or more is considered a resident.

Measures in force: Decree Law 1.939, Official Gazette, November 10, 1977, Rules on the acquisition, administration and disposal of government property, Title I

Sector: All Sectors

Subsector:

Obligations affected: National Treatment (Article 11.2)

Senior Executives and Boards of Directors (Article 11.7)

Description: Investment

Chile, upon the sale or other disposition of an equity interest or assets of an existing state enterprise or existing governmental entity, reserves the right to prohibit or impose limitations on the ownership of such interest or assets, and on the ability of the owners of such interest or assets to control any resulting enterprise, by investors of Peru or of a non-Party state or their investments. In connection with any such sale or other disposition, Chile may adopt or maintain any measure relating to the nationality of senior management or members of the board of directors.

For purposes of this reservation:

a) any measure maintained or adopted after the effective date of this Agreement which, at the time of sale or other disposition, prohibits or imposes limitations on participation in equity interests or assets or imposes nationality requirements described in this reservation, shall be deemed to be a measure in effect; and

b) “State enterprise" means an enterprise owned or controlled by Chile through ownership interest and includes an enterprise established after the date of entry into force of this Agreement solely for the purpose of selling or disposing of an equity interest in, or the assets of, an existing State enterprise or governmental entity.

Measures in force:

Sector: All Sectors

Subsector:

Obligations affected Most-Favored-Nation Treatment (Articles 11.3 and 12.4)

Description: Investment and cross-border trade in services

Chile reserves the right to adopt or maintain any measure that grants different treatment to countries under any bilateral or multilateral international treaty in force or entered into prior to the date of entry into force of this Agreement.

Chile reserves the right to adopt or maintain any measure that accords different treatment to countries under any international treaty in force or entered into after the date of entry into force of this Agreement with respect to:

a) aviation;

b) fishing; or

c) maritime affairs, including salvage.

Measures in force:

Sector: Minority issues

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)

Performance Requirements (article11.6) Senior Executives and Boards of Directors (article11.7)

Description: Investment and cross-border trade in services

Chile reserves the right to adopt or maintain any measure that grants rights or preferences to socially or economically disadvantaged minorities.

Measures in force:

Sector: Issues related to indigenous populations

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)

Performance Requirements (article11.6) Senior Executives and Boards of Directors (article11.7)

Description: Investment and cross-border trade in services

Chile reserves the right to adopt or maintain any measure that denies investors of Peru and their investments or service suppliers of Peru any rights or preferences granted to indigenous peoples.

Measures in force:

Sector: Communications

Subsector: Basic local telecommunications networks and services; digital telecommunications services for one-way satellite transmissions, direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services; and limited telecommunications services.

Obligations affected: National Treatment (Article 12.3)

Most-Favored-Nation Treatment (Article 12.4) Local Presence (Article 12.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure with respect to cross-border trade in local basic telecommunications networks and services; digital telecommunications services of one-way satellite transmissions, direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services; and limited telecommunications services.

Measures in force: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI.

Sector: Communications

Subsector: Basic local telecommunications networks and services; digital telecommunications services of one-way satellite transmissions whether direct-to-home television, direct broadcasting of television and direct audio services; supplementary telecommunications services and limited telecommunications services

Obligations affected: National Treatment (Article 11.2)

Most-Favored-Nation Treatment (Article 11.3) Performance Requirements (Article 11.6)

Senior Executives and Boards of Directors (Article 11.7)

Description: Investment

Chile reserves the right to adopt or maintain any measure with respect to investors or investment by investors of the other Party in local basic telecommunications networks and services; digital telecommunications services of one-way satellite broadcasting, direct-to-home television, direct broadcasting of television and direct audio services; complementary telecommunications services and limited telecommunications services.

Measures in force: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II and III.

Sector: Education

Subsector:

Obligations affected National Treatment (Article 12.3)

Most-Favored-Nation Treatment (Article 12.4) Local Presence (Article 12.6)

Description: Cross-border trade in services

Chile reserves the right to adopt or maintain any measure with respect to natural persons who provide educational services, including teachers and auxiliary personnel who provide educational services at the basic, pre-basic, kindergarten, differential, secondary, higher, professional, technical, university and other persons who provide services related to education, including the holders, in educational establishments of any type, schools, colleges, high schools, academies, training centers, professional and technical institutes and/or universities.

This reservation does not apply to the provision of second language training, business training, industrial and commercial training, and skills upgrading and education consulting services, including technical support and consulting, curriculum and program development.

Measures in force:

Sector: Government finances

Subsector:

Obligations affected: National Treatment (Article 11.2)

Description: Investment

Chile reserves the right to adopt or maintain any measure with respect to the acquisition, sale or other disposition by nationals of Peru of bonds, treasury securities or other debt instruments issued by the Central Bank or the Government of Chile.

Measures in force:

Sector: Fishing

Subsector: Fishing activities

Obligations affected: National Treatment (Articles 11.2 and 12.3)

Most-Favored-Nation Treatment (Articles 11.3 and 12.4)

Description: Investment and cross-border trade in services

Chile reserves the right to control foreign fishing activities, including landing, first landing of processed fish at sea and access to Chilean ports (port privilege).

Chile reserves the right to control the use of beaches, beach lands, portions of water and seabed for the granting of maritime concessions. For greater certainty, "maritime concessions" does not include aquaculture.

Measures in force: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V.

Decree with Force of Law 340, Official Gazette, April 6, 1960, on Maritime Concessions.

Supreme Decree 660, Official Gazette, November 28, 1988, Regulation of Maritime Concessions.

  • Chapter   1 Initial Provisions 1
  • Article   1.1 Establishment of a Free Trade Area 1
  • Article   1.2 Objectives 1
  • Chapter   2 General Definitions 1
  • Article   2.1 Definitions of General Application 1
  • Article   2.2 Country-specific Definition 1
  • Chapter   3 Trade In Goods  (1) 1
  • Article   3.1 National Treatment 1
  • Article   3.1 Programme of Release  (2) 1
  • Article   3.3 Customs Valuation 1
  • Article   3.4 Free Zones 1
  • Chapter   4 Rules of Origin 1
  • Article   4.1 Scope 1
  • Article   4.2 Qualification of Origin 1
  • Article   4.3 Minimal Operations 1
  • Article   4.4 Packing and Packaging 1
  • Article   4.5 Specific Requirements of Origin 1
  • Article   4.6 Cumulation 2
  • Article   4.7 Shipment, Transportation and Transit of Goods 2
  • Article   4.8 Billing by a Non-Party Operator 2
  • Article   4.9 Certificates of Origin 2
  • Article   4.10 Background of the Certificate and Deadlines 2
  • Article   4.11 Request for Preferential Tariff Treatment 2
  • Article   4.12 Customs Duty Drawback 2
  • Article   4.13 Processes for Control and Verification of the Origin Regime 2
  • Article   4.14 Denial of Preferential Tariff Treatment 2
  • Article   4.15 Confidentiality 2
  • Article   4.16 Sanctions and Responsibilities 2
  • Article   4.17 Definitions 2
  • Chapter   5 Trade Facilitation and Customs Procedures 2
  • Article   5.1 Publication 2
  • Article   5.2 Release of Goods 2
  • Article   5.3 Automation 2
  • Article   5.4 Risk Assessment 2
  • Article   5.5 Customs Cooperation 2
  • Article   5.6 Confidentiality 2
  • Article   5.7 Consignments of Express Delivery 2
  • Article   5.8 Review and Challenge 2
  • Article   5.9 Sanctions 3
  • Article   5.10 Advance Rulings 3
  • Article   5.11 Committee on Tariff Classification 3
  • Article   5.12 Implementation 3
  • Chapter   6 Procedure for the Application of Safeguards  (1) 3
  • Article   6.1 Bilateral Safeguard 3
  • Article   6.2 Provisional Safeguard 3
  • Article   6.3 Global Safeguards 3
  • Article   6.4 Procedures Concerning Safeguarding Measures 3
  • Article   6.5 Settlement of Disputes Concerning Safeguarding Measures 3
  • Article   6.6 Definitions 3
  • Article   6.7 Procedures Concerning the Administration of Safeguard Measures 3
  • Chapter   7 Anti-dumping and Countervailing Duties 3
  • Article   7.1 3
  • Article   7.2 3
  • Chapter   8 Competition Policy 3
  • Article   8.1 Objectives 3
  • Article   8.2 Competition Authorities and Legislation 3
  • Article   8.3 Anti-competitive Business Practices with Cross-border Effects 3
  • Article   8.4 Cooperation 3
  • Article   8.5 Coordination between Competition Authorities 3
  • Article   8.6 Notifications 3
  • Article   8.7 Consultations 3
  • Article   8.8 Information Exchange and Confidentiality 3
  • Article   8.9 Technical Assistance 3
  • Article   8.10 State-Owned Enterprises and Enterprises Holding Special or Exclusive Rights, Including Designated Monopolies 3
  • Article   8.12 Settlement of Disputes 4
  • Article   8.13 Final Provisions 4
  • Chapter   9 Sanitary and Phytosanitary Measures 4
  • Article   9.1 Objectives 4
  • Article   9.2 General Provisions 4
  • Article   9.3 Rights and Obligations 4
  • Article   9.4 Equivalence 4
  • Article   9.5 Recognition of Pest or Disease Free or Low Prevalence Areas 4
  • Article   9.6 Risk Assessment and Appropriate Level of Protection 4
  • Article   9.7 Agreements between Competent Authorities 4
  • Article   9.8 Committee on Sanitary and Phytosanitary Measures 4
  • Article   9.9 Consultations and Dispute Settlement 4
  • Article   9.10 Competent Authorities 4
  • Chapter   10 Technical Barriers to Trade 4
  • General provisions 4
  • Article   10.1 4
  • Article   10.2 4
  • Article   10.3 4
  • Trade facilitation 4
  • Article   10.4 4
  • Article   10.5 4
  • Technical regulations 4
  • Article   10.6 4
  • Article   10.7 4
  • Conformity assessment 4
  • Article   10.8 4
  • Article   10.9 4
  • Article   10.10 Transparency 4
  • Article   10.11 Committee on Technical Barriers to Trade 4
  • Article   10.12 Technical Cooperation 4
  • Article   10.13 Exchange of Information 4
  • Article   10.14 Definitions 4
  • Chapter   11 Investment 4
  • Section   A Investment 4
  • Article   11.1 Scope  (1) 4
  • Article   11.2 National Treatment 5
  • Article   11.3 Most Favoured Nation Treatment 5
  • Article   11.4 Minimum Level of Treatment (3) 5
  • Article   11.5 Treatment In Case of Strife 5
  • Article   11.6 Performance Requirements 5
  • Article   11.7 Senior Management and Boards 5
  • Article   11.8 Dissenting Measures  (7) 5
  • Article   11.9 Transfers  (8) 5
  • Article   11.10 Expropriation and Compensation  (10) 5
  • Article   11.11 Special Formalities and Information Requirements 5
  • Article   11.12 Denial of Benefits 5
  • Article   11.13 Investment and Environment 5
  • Article   11.14 Implementation 5
  • Section   B Investor-state Dispute Settlement 5
  • Article   11.15 Consultation and Negotiation 5
  • Article   11.16 Submission of a Claim to Arbitration 5
  • Article   11.17 Consent of Each Party to Arbitration 5
  • Article   11.18 Conditions and Limitations on Consent of the Parties 6
  • Article   11.19 Selection of Arbitrators 6
  • Article   11.20 Conduct of the Arbitration 6
  • Article   11.21 Transparency of the Arbitral Proceedings 6
  • Article   11.22 Applicable Law 6
  • Article   11.23 Interpretation of Annexes I and II 6
  • Article   11.24 Expert Reports 6
  • Article   11.25 Cumulation of Procedures 6
  • Article   11.26 Awards 6
  • Article   11.27 Service of Documents 6
  • Section   C Definitions 6
  • Article   11.28 Definitions 6
  • Annex 11-A  Customary International Law 7
  • Annex 11-B  Public Debt 7
  • Annex 11-C  Payments and Transfers 7
  • Annex 11-D  Expropriation 7
  • Annex 11-E  Termination of the Bilateral Investment Treaty 7
  • Annex 11-F  Decree-Law 600 - Chile  (18) 7
  • Annex 11-G  Possible Bilateral Appellate Body or Mechanism 7
  • Annex 11-H  Service of Documents on a Party Pursuant to Section B 7
  • Chapter   12 Cross-border Trade In Services 7
  • Article   12.1 Scope 7
  • Article   12.2 Subsidies 7
  • Article   12.3 National Treatment 7
  • Article   12.4 Most Favoured Nation Treatment 7
  • Article   12.5 Non-discriminatory Quantitative Restrictions 7
  • Article   12.6 Local Presence 7
  • Article   12.7 Dissenting Measures 7
  • Article   12.8 Transparency In the Development and Implementation of Regulations  (7) 7
  • Article   12.9 Domestic Regulation 7
  • Article   12.10 Mutual Recognition 7
  • Article   12.11 Implementation 7
  • Article   12.12 Denial of Benefits 7
  • Article   12.13 Definitions 7
  • Chapter   13 Temporary Entry of Business Persons 8
  • Article   13.1 General Principles 8
  • Article   13.2 General Obligations 8
  • Article   13.3 Authorisation for Temporary Entry 8
  • Article   13.4 Provision of Information 8
  • Article   13.5 Committee on Temporary Entry 8
  • Article   13.6 Settlement of Disputes 8
  • Article   13.7 Relationship to other Chapters 8
  • Article   13.8 Transparency In the Development and Implementation of Regulations  (1) 8
  • Article   13.9 Definitions 8
  • Chapter   14 Transparency 8
  • Article   14.1 Contact Points 8
  • Article   14.2 Publicity 8
  • Article   14.3 Notification and Provision of Information 8
  • Article   14.4 Administrative Procedures 8
  • Article   14.5 Review and Challenge 8
  • Article   14.6 Definition 8
  • Chapter   15 Administration of the Agreement 8
  • Article   15.1 The Administrative Commission 8
  • Article   15.2 Coordinators of the Free Trade Agreement 8
  • Chapter   16 Settlement of Disputes 8
  • Article   16.1 General Provision 8
  • Article   16.2 Scope 8
  • Article   16.3 Choice of Forum 8
  • Article   16.4 Consultations 8
  • Article   16.5 The Intervention of the Administrative Commission 9
  • Article   16.6 Establishment of an Arbitral Tribunal 9
  • Article   16.7 Composition of Arbitral Tribunals 9
  • Article   16.8 Functions of Arbitral Tribunals 9
  • Article   16.9 Model Rules of Procedure 9
  • Article   16.10 Suspension or Termination of Proceedings 9
  • Article   16.11 Preliminary Report 9
  • Article   16.12 Final Report 9
  • Article   16.13 Implementation of the Final Report 9
  • Article   16.14 Disagreement on Compliance 9
  • Article   16.15 Suspension of Benefits and Compensation 9
  • Article   16.16 The Compliance Review 9
  • Article   16.17 Other Provisions 9
  • Article   16.18 The Right of Individuals 9
  • Chapter   17 Exceptions 9
  • Article   17.1 General Exceptions 9
  • Article   17.2 Essential Security 9
  • Article   17.3 Taxation 9
  • Article   17.4 Difficulties In the Balance of Payments 9
  • Article   17.5 Definitions 9
  • Chapter   18 Cooperation and Trade Promotion  (1) 9
  • Article   18.1 Cooperation 9
  • Article   18.2 Trade Promotion 9
  • Chapter   19 General Provisions 10
  • Article   19.1 Annexes and Appendices and the Footnotes 10
  • Article   19.2 Relation to other International Agreements 10
  • Article   19.3 Succession of Agreements 10
  • Article   19.4 Scope of Obligations 10
  • Article   19.5 Dissemination of Information 10
  • Article   19.6 Confidentiality 10
  • Article   19.7 Intellectual Property 10
  • Article   19.8 Public Policies 10
  • Article   19.9 Coordination 10
  • Article   20 Final Provisions 10
  • Article   20.1 Amendments Amendments and Additions 10
  • Article   20.2 Amendment of the Wto Agreement 10
  • Article   20.3 Accession 10
  • Article   20.4 Convergence 10
  • Article   20.5 Future Negotiations 10
  • Article   20.6 Entry Into Force 10
  • Article   20.7 Denunciation 10
  • Annex I 10
  • Annex I  List of Chile 10
  • Annex I  List of Peru 12
  • Annex II 14
  • Annex II  List of Chile 14
  • Annex II  List of Peru 15