Free Trade Agreement between the EFTA States and the Republic of Chile

PREAMBLE

str. 2Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation (EFTA States), and

The Republic of Chile (Chile), hereinafter collectively referred to as 'the Parties', resolved to:

STRENGTHEN the special bonds of friendship and co-operation between their nations;

CONTRIBUTE to the harmonious development and expansion of world trade by removing obstacles to trade and provide a catalyst to broader international cooperation;

ESTABLISH clear and mutually advantageous rules governing their trade;

CREATE an expanded and secure market for goods and services in their territories;

ENSURE a stable and predictable environment for business planning and investment;

FOSTER creativity and innovation by protecting intellectual property rights;

BUILD on their respective rights and obligations under the Marrakech Agreement establishing the World Trade Organization and other multilateral and bilateral instruments of co-operation;

ENSURE that the gains from trade liberalisation are not offset by the erection of private, anti-competitive barriers;

ENHANCE the competitiveness of their firms in global markets;

CREATE new employment opportunities, improve working conditions and living standards in their respective territories and seek to ensure high levels of environmental and labour protection;

REAFFIRM their commitment to pursue the objective of sustainable development and recognise the importance of coherent and mutually supportive trade, environmental and labour policies in this respect;

IMPLEMENT this Agreement in line with the objectives to preserve and protect the environment through promoting high levels of environmental protection, and enforcement of environmental laws and sound environmental management;

RECALL their rights and obligations under multilateral environmental agreements to which they are a party, and the respect for the fundamental principles and rights at work, including the principles set out in the relevant International Labour Organisation (ILO) Conventions to which they are a party;

REAFFIRM their commitment to promote inclusive economic development and equal opportunities for all;

AFFIRM their commitment to prevent and combat corruption in international trade and investment and to promote the principles of transparency and good public governance;

ACKNOWLEDGE the importance of good corporate governance and responsible business conduct for sustainable development, and affirm their aim to encourage enterprises to observe internationally recognised guidelines and principles in this respect, such as the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the OECD Principles of Corporate Governance and the UN Global Compact;

REAFFIRM their commitment to democracy, the rule of law, human rights and fundamental freedoms in accordance with their obligations under international law, including the principles and objectives set out in the United Nations Charter and the Universal Declaration of Human Rights; and

CONVINCED that this Agreement will create conditions encouraging economic, trade and investment relations between them;

HAVE AGREED, in pursuit of the above, to conclude the following Free Trade Agreement (Agreement):

CHAPTER I

INITIAL PROVISIONS

ARTICLE 1

Establishment of a free trade area

str. 4The Parties hereby establish a free trade area in accordance with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994), Article V of the General Agreement on Trade in Services (GATS) and the provisions of this Agreement.

ARTICLE 2

Objectives

str. 4This Agreement is based on trade relations between market economies and on the respect for democratic principles and human rights, with a view to spurring prosperity and sustainable development.

str. 5The objectives of this Agreement, as elaborated through its principles and rules, are to:

- (a) achieve the liberalisation of trade in goods, in conformity with Article XXIV of the GATT 1994;
- (b) achieve the liberalisation of trade in services, in conformity with Article V of the GATS;
- (c) achieve the liberalisation on a mutual basis of the government procurement markets of the Parties;
- (d) promote conditions of fair competition in the free trade area;
- (e) prevent the preparation, adoption and application of technical regulations or sanitary and phytosanitary measures that are more trade restrictive than necessary;
- (f) substantially increase investment opportunities in the free trade area;
- (g) provide adequate and effective protection and enforcement of intellectual property rights, in accordance with international standards recognised by the Parties;
- (h) develop international trade and investment in such a way as to contribute to the objective of sustainable development and to ensure that this objective is integrated and reflected in the Parties' trade relations; and - (i) establish a framework for further bilateral and multilateral cooperation to expand and enhance the benefits of this Agreement.

ARTICLE 3

Territorial application

str. 51. Without prejudice to Annex I, this Agreement shall apply to the territory of each Party, as well as to areas beyond the territory in which each Party may exercise sovereign rights or jurisdiction in accordance with international law. 2. Annex II shall apply with respect to Norway.

ARTICLE 4

Relation to other international agreements

str. 5The Parties confirm their rights and obligations under the Marrakech Agreement establishing the World Trade Organization and the other agreements negotiated thereunder (hereinafter referred to as 'the WTO Agreement') to which they are party, and under any other international agreement to which they are a party.

ARTICLE 5

Trade and economic relations governed by this Agreement

str. 51. The provisions of this Agreement apply to the trade and economic relations between, on the one side, the individual EFTA States and, on the other side, Chile, but not to the trade relations between individual EFTA States, unless otherwise provided for in this Agreement. 2. As a result of the customs union established by the Treaty of 29 March 1923 between Switzerland and the Principality of Liechtenstein, Switzerland shall represent the Principality of Liechtenstein in matters covered thereby.

ARTICLE 6

Regional and local governments

str. 6Each Party is fully responsible for the observance of all obligations and commitments under this Agreement and shall ensure their observance by its respective regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional and local governments or authorities within its territory.

CHAPTER II

TRADE IN GOODS

ARTICLE 7

Scope and coverage

str. 7This Chapter applies to trade in goods between the Parties.

ARTICLE 8

Rules of origin and administrative cooperation

str. 7The rules of origin and administrative cooperation are set out in Annex I (Rules of Origin and Administrative Cooperation).

ARTICLE 9

Customs duties

ARTICLE 10

Fees and formalities

str. 8Without prejudice to Article 7 (Fees and charges) of Annex VII ter (Trade Facilitation), Article VIII of the GATT 1994 applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis .

ARTICLE 11

Import and export restrictions

str. 8Article XI of the GATT 1994 applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis , except as provided for in Annex VII (Import and Export Restrictions).

ARTICLE 12

Customs valuation 1

str. 8Article VII of the GATT 1994 and Part I of the Agreement on Implementation of Article VII of the GATT 1994 apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis .

ARTICLE 13

National treatment

str. 8Article III of the GATT 1994 applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis .

ARTICLE 14

Sanitary and phytosanitary measures

str. 81. The rights and obligations of the Parties with respect to sanitary and phytosanitary measures shall be governed by the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). 1 Switzerland applies customs duties based on weight and quantity rather than ad valorem duties. 2. The Parties shall strengthen their co-operation in the field of sanitary and phytosanitary measures, with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets. 3. Upon request of a Party, which considers that a measure of another Party is likely to affect, or has affected, access to its market, expert consultations shall be held. The experts, representing the Parties concerned on specific issues in the field of sanitary and phytosanitary matters, shall aim at finding a mutually acceptable solution.

str. 9Consultations shall take place within 30 days from the receipt of the request and may be conducted by any method agreed by the consulting Parties. 4. In order to permit the efficient use of resources, the Parties shall, to the extent possible, endeavour to use modern technological means of communication, such as electronic communication, videoconferencing or telephone, or to arrange for the meetings referred to in paragraph 3 to be held in conjunction with the meetings of the Joint Committee or with sanitary and phytosanitary meetings in the framework of the WTO. The results of expert consultations held in accordance with paragraph 3 shall be reported to the Joint Committee. 5. Chile and any of the EFTA States may, for better implementation of this Article, develop bilateral arrangements including agreements between their respective regulatory agencies. 6. Upon request of a Party, the Parties shall, without undue delay, agree on an arrangement extending to each other equivalent 2 treatment related to sanitary and phytosanitary measures mutually agreed between each Party and the European Union (EU). 7. The Parties shall exchange names and addresses of contact points with sanitary and phytosanitary expertise in order to facilitate communication and the exchange of information.

ARTICLE 15

Technical regulations

str. 91. The rights and obligations of the Parties with respect to technical regulations, standards and conformity assessment shall be governed by the WTO Agreement on Technical Barriers to Trade (TBT Agreement). 2. The Parties shall strengthen their cooperation in the field of technical regulations, standards and conformity assessment, with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets. 2 For the purposes of this

str. 10Article, the term 'equivalent' shall not be understood as the term 'equivalence' according to the SPS Agreement. 3. Upon request of a Party, which considers that a technical regulation, standard or conformity assessment procedure of another Party is likely to create, or has created, an obstacle to trade, consultations shall be held with the objective of finding a mutually acceptable solution. Consultations shall take place within 30 days from the receipt of the request and may be conducted by any method agreed by the consulting Parties. The Joint Committee shall be informed thereof. 4. Upon request of a Party, the Parties shall, without undue delay, negotiate a sector specific arrangement with the aim to extend to each other treatment related to technical regulations, standards and conformity assessments each Party has granted to or agreed with the EU. A Party which does not agree to extend to each other such an arrangement shall provide to the other Party, upon request, the rationale for its decision. The Joint Committee shall be informed thereof. 5. The Parties shall exchange names and addresses of contact points for this Article in order to facilitate communication and the exchange of information. .

ARTICLE 16

Trade facilitation

str. 10Provisions regarding trade facilitation are set out in Annex VII ter (Trade Facilitation).

ARTICLE 17

Anti-dumping and countervailing measures

str. 101. A Party shall not apply anti-dumping measures as provided for under the WTO Agreement on Implementation of Article VI of the GATT 1994 in relation to goods of a Party. 2. The Parties recognise that the effective implementation of competition rules may address economic causes leading to dumping. 3. The rights and obligations of the Parties related to countervailing measures shall be governed by the WTO Agreement on Subsidies and Countervailing Measures.

ARTICLE 18

Global safeguard measures

str. 111. The rights and obligations of the Parties with respect to global safeguards shall be governed by Article XIX of the GATT 1994 and the WTO Agreement on Safeguards. 2 Upon request of the exporting Party, the Party initiating a global safeguard investigation shall immediately provide:

- (a) the information referred to in Articles 12.2 and 12.6 of the WTO Agreement on Safeguards, in the format prescribed by the WTO Committee on Safeguards; and
- (b) the public notice of initiation of an investigation and the public version of the complaint filed by the domestic industry. 3 A Party initiating an investigation to impose global safeguard measures against one or several Parties shall inform them immediately and provide adequate opportunity for consultations.

ARTICLE 19

Emergency action on imports of particular products

str. 111. Where any product originating in a Party, as a result of the reduction or elimination of a customs duty under this Agreement, is being imported into the territory of another Party in such increased quantities and under such conditions as to constitute a substantial cause of serious injury or threat thereof to the domestic industry of like or directly competitive products in the territory of the importing Party, the importing Party may take emergency measures to the minimum extent necessary to remedy or prevent the injury. 2. Such measures may consist in:

- (a) suspending the further reduction of any rate of duty provided for under this Agreement on the product; or
- (b) increasing the rate of duty on the product to a level not to exceed the lesser of:
- (i) the most-favoured nation rate of duty in effect at the time the action is taken;
- (ii) the most-favoured nation rate of duty in effect on the day immediately preceding the date of the entry into force of this Agreement. 3. The Parties shall not take emergency measures for a period exceeding one year. In very exceptional circumstances, after review by the Joint Committee, measures may be taken up to a total maximum period of three years. In this case, the Party taking such measures shall present a schedule leading to their progressive elimination. The Parties shall not apply measures to the import of a product which has previously been subject to such a measure for a period of, at least, five years since the expiry of the measure. 4. The Parties shall only take emergency measures upon clear evidence that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures laid down in the WTO Agreement on Safeguards. 5. The Party intending to take emergency measures under this Article shall promptly make a notification to the other Parties, containing all pertinent information which shall include evidence of serious injury caused by increased imports, precise description of the product involved, the proposed measure, the proposed date of introduction and expected duration of the measures. Any Party that may be affected shall simultaneously be offered compensation in the form of substantially equivalent trade liberalisation in relation to the imports from any such Party. 6. The Joint Committee shall, within 30 days from the date of notification to the Parties, meet to examine the information provided under paragraph 5, in order to facilitate a mutually acceptable solution of the matter. In the absence of such solution, the importing Party may adopt a measure pursuant to paragraph 2 to remedy the problem, and, in the absence of mutually agreed compensation, the Party against whose product the measure is taken may take retaliatory action. The emergency measure and any compensatory or retaliatory action shall be immediately notified to the Joint Committee. The retaliatory action shall consist of the suspension of concessions having substantially equivalent trade effects or concessions substantially equivalent to the value of the additional duties expected to result from the emergency action. In the selection of the emergency measure and the retaliatory action, priority must be given to the action which least disturbs the functioning of this Agreement. 7. In critical circumstances where delay would cause damage which would be difficult to repair, a Party may take a provisional emergency measure not exceeding 120 days pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The Party intending to take such a measure shall immediately notify the other Parties thereof and, within 30 days of the date of such notification, the pertinent procedures set out in paragraphs 5 and 6, including for compensatory and retaliatory action, shall be initiated. Any compensation shall be based on the total period of application of the provisional measure. The period of application of any such provisional measure shall be counted as part of the duration of the definitive measure and any extension thereof.

ARTICLE 20

State trading enterprises

str. 13Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994 apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis.

ARTICLE 21

Export subsidies

str. 13No Party may adopt or maintain export subsidies, as defined in the WTO Agreement on Agriculture, in connection with the exportation of agricultural products to another Party.

ARTICLE 22

General exceptions

str. 131. For the purposes of this Chapter, Article XX of the GATT 1994 and its interpretative notes apply and are incorporated into and made part of this Agreement, mutatis mutandis . 2. The Parties understand that the measures referred to in Article XX(b) of the GATT 1994 include environmental measures necessary to protect human, animal or plant life or health, and that Article XX(g) of the GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources.

ARTICLE 23

Preference utilisation

str. 131. For the purposes of monitoring the functioning of this Agreement and calculating preference utilisation rates, the Parties shall annually exchange import statistics and preferential tariff rates under this Agreement as well as applied mostfavoured-nation (MFN) tariff rates. 2. Import statistics exchanged shall pertain to the three most recent years available and comprise all imports from the Party concerned, including trade values and volumes listed at the level of national tariff line. The Parties shall exchange separate statistics for imports benefitting from preferential treatment under this Agreement, for imports benefiting from other preferential treatment than under this Agreement as well as those that did not receive preferential treatment (MFN treatment). The preferential tariff rates

and applied MFN tariff rates exchanged shall pertain to the same year as the import statistics. Upon request, the Parties shall exchange additional information and explanations in English. 3.

str. 14The exchange of import statistics, preferential tariff rates and applied MFN tariff rates shall start one year after the entry into force of this Agreement. 4. Notwithstanding paragraph 2, no Party shall be obliged to exchange data that is confidential in accordance with its domestic laws and regulations.

ARTICLE 24

Technical amendments

str. 141. The Parties shall jointly decide, as a result of amendments to the Harmonized Commodity Description and Coding System (HS) nomenclature or other technical amendments to a Party's customs tariff, whether Annexes III (Chile Schedule of Tariff Commitments), IV (Iceland Schedule of Tariff Commitments), V (Norway Schedule of Tariff Commitments) and VI (Switzerland Schedule of Tariff Commitments) and Appendix I (Product-Specific Rules) to Annex I (Rules of Origin and Administrative Cooperation) will be amended accordingly. 2. Amendments pursuant to paragraph 1 shall be made without impairing existing tariff commitments or product-specific rules. Consequently, the customs duty applicable to the corresponding goods under a new tariff line shall be equal to or lower than the customs duty of the corresponding original tariff line and any other agreed tariff commitments, such as tariff dismantling periods, shall not deteriorate. Product-specific rules applicable to the corresponding goods under the new HS classification shall be equal to or less stringent than the product-specific rule of the corresponding original HS classification. 3. The version of the HS and the year shall be indicated in the schedules of tariff commitments and product-specific rules referred to in paragraph 1.

ARTICLE 25

Sub-Committee on trade in goods

str. 141. A Sub-Committee on trade in goods is hereby established. 2. The mandate of the Sub-Committee on trade in goods is set out in Annex VII bis (Mandate of the Sub-Committee on trade in goods).

CHAPTER III

SECTION I - TRADE IN SERVICES

ARTICLE 26

Coverage

str. 16Nothing in this Section shall be construed to impose any obligation with respect to government procurement, which is subject to the Chapter V.

4. This Section shall not apply to trade in financial services, which is subject to Section II.

ARTICLE 27

Definitions

ARTICLE 28

Most-favoured nation treatment

str. 171. The rights and obligations of the Parties with respect to most-favoured nation treatment shall be governed by the GATS. 2. If a Party enters into an agreement with a non-Party which has been notified under Article V of the GATS, it shall, upon request from another Party, afford adequate opportunity to the other Parties to negotiate, on a mutually advantageous basis, the benefits granted therein.

ARTICLE 29

Market access

str. 18With respect to market access through the modes of supply identified in Article 23, each Party shall accord services and service suppliers of another Party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule referred to in Article 31. 2. In sectors where market-access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule, are defined as:

- (a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
- (b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
- (c) limitations on the total number of service operations or on the total quantity of service output expressed in the terms of designated numerical units in the form of quotas or the requirement of an economic needs test. 7

7 Subparagraph (c) does not cover measures of a Party which limit inputs for the supply of services. - (d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or a requirement of an economic needs test;
- (e) measures which restrict or require specific types of legal entities or joint ventures through which a service supplier of another Party may supply a service; and
- (f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.

ARTICLE 30

National treatment

str. 181. In the sectors inscribed in its Schedule referred to in Article 31 and subject to the conditions and qualifications set out therein, each Party shall grant to services and services suppliers of another Party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and services suppliers. 8

2. A Party may meet the requirement of paragraph 1 by according to services and service suppliers of another Party, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers. 3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Party compared to like services or service suppliers of another Party.

ARTICLE 31

Trade liberalisation

str. 191. The Schedule of specific commitments that each Party undertakes under Articles 29 and 30 as well as paragraph 3 of this Article is set out at Annex VIII. With respect to sectors where such commitments are undertaken, each Schedule specifies:

- (a) terms, limitations and conditions on market access;

8 Specific commitments assumed under this Article shall not be construed to require the Parties to compensate for any inherent competitive disadvantage which result from the foreign character of the relevant services and service suppliers. - (b) conditions and qualifications on national treatment;
- (c) undertakings relating to additional commitments referred to in paragraph 3; and
- (d) where appropriate, the time-frame for implementation of such commitments and the date of entry into force of such commitments . 2. Measures inconsistent with both Articles 29 and 30 are inscribed in the column relating to Article 29. In this case, the inscription is considered to provide a condition or qualification to Article 30 as well. 3. Where a Party undertakes a specific commitment on measures affecting trade in services not subject to scheduling under Articles 29 and 30, including those regarding qualifications, standards or licensing matters, such commitments are inscribed in its Schedule as additional commitments. 4.

str. 20The Parties undertake to review their Schedules of specific commitments at least every three years, or more frequently, with a view to provide for a reduction or elimination of substantially all remaining discrimination between the Parties with regard to trade in services covered in this Section on a mutually advantageous basis and ensuring an overall balance of rights and obligations.

ARTICLE 32

Domestic regulation

str. 201. In sectors where specific commitments are undertaken, each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner. 2. Each Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier of another Party, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review. 3. Where authorisation is required for the supply of a service, the competent authorities of a Party shall promptly, after the submission of an application is considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of the Party shall provide, without undue delay, information concerning the status of the application. 4. The Parties shall jointly review the results of the negotiations on disciplines for measures relating to qualification requirements and procedures, technical standards and

licensing requirements pursuant to Article VI.4 of the GATS aiming to ensure that such measure do not constitute unnecessary barriers to trade in services, with a view to their incorporation into this Agreement.

str. 21The Parties note that such disciplines aim to ensure that such requirements are, inter alia :

- (a) based on objective and transparent criteria, such as competence and the ability to supply the service;
- (b) not more burdensome than necessary to ensure the quality of the service;
- (c) in the case of licensing procedures, not in themselves a restriction on the supply of the service. 5. In sectors in which a Party has undertaken specific commitments, until the incorporation of disciplines developed pursuant to paragraph 4, a Party shall not apply licensing and qualification requirements and technical standards in a manner which:

- (a) does not comply with the criteria outlined in paragraphs 4 (a), (b) or (c); and
- (b) could not reasonably have been expected of that Party at the time of the conclusion of the negotiation of the present agreement. 6. Whenever a domestic regulation is prepared, adopted and applied in accordance with international standards applied by both Parties, it shall be rebuttably presumed to comply with the provisions of this Article. 7. Each Party shall provide for adequate procedures to verify the competence of professionals of another Party.

ARTICLE 33

Recognition

str. 211. The Parties shall encourage the relevant bodies in their respective territories to provide recommendations on mutual recognition, for the purpose of the fulfilment, in whole or in part, by service suppliers of the criteria applied by each Party for the authorisation, licensing, accreditation, operation and certification of service suppliers and, in particular, professional services. 2. The Joint Committee, within a reasonable period of time and considering the level of correspondence of the respective regulations, shall decide whether a recommendation referred to in paragraph 1 is consistent with this Section. If that is the case, such a recommendation shall be implemented through an agreement on mutual requirements, qualifications, licences and other regulations to be negotiated by the competent authorities. 3. Any such agreement shall be in conformity with the relevant provisions of the WTO Agreement and, in particular, Article VII of the GATS. 4.

str. 22Where the Parties agree, each Party shall encourage its relevant bodies to develop procedures for the temporary licensing of professional services suppliers of another Party. 5. The Joint Committee shall periodically, and at least once every three years, review the implementation of this Article. 6. Where a Party recognises, by agreement or arrangement, the education or experience obtained, requirements met or licenses or certifications granted in the territory of a non-Party, that Party shall accord another Party, upon request, adequate opportunity to negotiate its accession to such an agreement or arrangement or to negotiate comparable ones with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for another Party to demonstrate that the education or experience obtained, requirements met or licenses or certifications granted in the territory of that other Party should also be recognised.

ARTICLE 34

Movement of natural persons

str. 221. This Section applies to measures affecting natural persons who are service suppliers of a Party, and natural persons of a Party who are employed by a service supplier of a Party, in respect of the supply of a service. Natural persons covered by a Party's specific commitments shall be allowed to supply the service in accordance with the terms of those commitments. 2. This Section shall not apply to measures affecting natural persons seeking access to the employment market of a Party, nor shall it apply to measures regarding nationality, residence or employment on a permanent basis. 3. This Section shall not prevent a Party from applying measures to regulate the entry of natural persons of another Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in a manner so as to nullify or impair the benefits accruing to a Party under the terms of a specific commitment. 9

9 The sole fact of requiring a visa shall not be regarded as nullifying or impairing benefits under a specific commitment.

ARTICLE 35

Telecommunications services

str. 23Specific provisions on telecommunications services are set out in Annex IX.

SECTION II - FINANCIAL SERVICES

ARTICLE 36

Coverage

str. 231. This Section applies to measures by a Party affecting trade in financial services, including measures taken by central, regional or local governments and authorities, as well as by non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities. 2. Nothing in this Section shall be construed to impose any obligation with respect to government procurement, which is subject to Chapter V.

3. This Section does not apply to:
2. (a) activities conducted by a central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;
3. (b) activities forming part of a statutory system of social security or public retirement plans; and
4. (c) other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the government. 4. For the purposes of paragraph 3, if a Party allows any of the activities referred to in subparagraph 3(b) or 3(c) to be conducted by its financial service suppliers in competition with a public entity or a financial service supplier, this Section applies to such activities.

ARTICLE 37

Definitions

- (aa) money market instruments (including cheques, bills, certificates of deposits);

str. 25- (bb) foreign exchange;
- (cc) derivative products including, but not limited to, futures and options;
- (dd) exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;
- (ee) transferable securities; or
- (ff) other negotiable instruments and financial assets, including bullion;
- (xi) participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;
- (xii) money broking;
- (xiii) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depositary and trust services;
- (xiv) settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments;
- (xv) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services;
- (xvi) advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.

ARTICLE 38

Most-favoured nation treatment

str. 271. The rights and obligations of the Parties with respect to most-favoured nation treatment shall be governed by the GATS. 2. If a Party enters into an agreement with a non-Party which has been notified under Article V of the GATS, it shall, upon request from another Party, afford adequate opportunity to the other Parties to negotiate, on a mutually advantageous basis, the benefits granted therein.

ARTICLE 39

Market access

str. 271. With respect to market access through the modes of supply identified in Article 37 (Definitions), each Party shall accord financial services and financial service suppliers of the other Party treatment no less favourable than that provided for under the

terms, limitations and conditions agreed and specified in its Schedule referred to in Article 43 (Schedule of specific commitments). 2.

str. 28In sectors where market-access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule, are defined as:

- (a) limitations on the number of financial services suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
- (b) limitations on the total value of financial service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
- (c) limitations on the total number of financial service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; 10
- (d) limitations on the total number of natural persons that may be employed in a particular financial service sector or that a financial service supplier may employ and who are necessary for, and directly related to, the supply of a specific financial service in the form of numerical quotas or the requirement of an economic needs test;
- (e) measures which restrict or require specific types of legal entity or joint venture through which a financial service supplier of the other Party may supply a financial service; and
- (f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.

ARTICLE 40

National treatment

str. 281. In the sectors inscribed in its Schedule referred to in Article 43 (Schedule of specific commitments), and subject to the conditions and qualifications set out therein, each Party shall accord to financial services and financial service suppliers of another Party, in respect of all measures affecting the supply of financial services, treatment no

10 Paragraph 2(c) does not cover measures of a Party which limit inputs for the supply of financial services.

less favourable than that it accords to its own like financial services and financial service suppliers. 11

str. 292. A Party may meet the requirement of paragraph 1 by according to financial services and financial service suppliers of another Party, either formally identical treatment or formally different treatment to that it accords to its own like financial services and financial service suppliers. 3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of financial services or financial service suppliers of a Party compared to like financial services or financial service suppliers of another Party.

ARTICLE 41

Self-regulatory organisations

str. 29When a Party requires a financial service supplier of another Party to be a member of, participate in, or have access to, a self-regulatory organisation in order to supply a financial service in its territory in the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, it shall ensure that the selfregulatory organisation observes the obligations of Article 40 (National treatment).

ARTICLE 42

Payment and clearing systems

str. 29Under terms and conditions that accord national treatment, each Party shall grant to financial service suppliers of another Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article is not intended to confer access to the Party's lender of last resort facilities.

Schedule of specific commitments

str. 291. The specific commitment undertaken by each Party under Articles 39 (Market access) and 40 (National treatment) are set out in the Schedule included respectively in Annexes VIII bis (Financial Services Schedule for Chile) for Chile and VIII (Schedules

11 Specific commitments assumed under this Article shall not be construed to require the Parties to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant financial services or financial service suppliers.

str. 30of Specific Commitments) for the EFTA States. With respect to sectors where such commitments are undertaken, each Schedule specifies:

- (a) terms, limitations and conditions on market access;
- (b) conditions and qualifications on national treatment;
- (c) undertakings relating to additional commitments referred to in paragraph 3; and
- (d) where appropriate, the time-frame for implementation of such commitments and the date of entry into force of such commitments. 2. Measures inconsistent with both Articles 39 (Market access) and 40 (National treatment) are inscribed in the column relating to Article 39 (Market access). In this case, the inscription is considered to provide a condition or qualification to Article 40 (National treatment) as well. 3. Where a Party undertakes specific commitments on measures affecting trade in financial services not subject to scheduling under Articles 39 (Market access) and 40 (National treatment), such commitments are inscribed in its Schedule as additional commitments.

ARTICLE 44

Effective and transparent regulation

str. 301. Each Party shall promote regulatory transparency in financial services taking into account:

- (a) the work undertaken by the Parties in the GATS and in other fora relating to trade in financial services;
- (b) the importance of regulatory transparency, of identifiable policy objectives and of clear and consistently applied regulatory processes; and
- (c) any consultations that the Parties may have between them. 2. In sectors where specific commitments are undertaken, each Party shall ensure that all measures of general application affecting trade in financial services are administered in a reasonable, objective and impartial manner. 3. Each Party shall maintain or establish, as soon as practicable, appropriate mechanisms for responding to inquiries from interested persons regarding measures of general application covered by this Section. 4. Each Party shall maintain judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier of another Party, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in financial services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures provide for an objective and impartial review. 5. Each Party shall ensure that measures relating to qualification requirements and procedures, and licensing requirements and procedures do not constitute unnecessary barriers to trade in financial services. In sectors in which a Party has undertaken specific commitments, such measures shall be:

- (a) based on objective and transparent criteria, such as competence and the ability to supply the financial service;
- (b) not more burdensome than necessary to ensure the quality of the financial service; and
- (c) in the case of licensing procedures, not in themselves a restriction on the supply of the financial service. 6. Whenever measures referred to in paragraph 5 are prepared, adopted and applied in accordance with international standards applied by all Parties, it shall be rebuttably presumed to comply with the provisions of this Article. 7. The competent authorities of each Party shall make available to interested persons domestic requirements and procedures for completing applications relating to the supply of financial services. 8. Where a licence or authorisation is required for the supply of a financial service, the competent authorities of a Party shall make the requirements for such a licence or authorisation publicly available. The period of time normally required to reach a decision concerning an application for a licence or authorisation shall:

- (a) be made available to the applicant upon request;
- (b) be made publicly available; or
- (c) be made available by a combination of both. 9. The competent authorities of each Party shall process expeditiously applications related

str. 32to the supply of financial services submitted by service suppliers of another Party. 10. If the competent authorities of a Party require additional information from the applicant in order to process the application, they shall notify the applicant without undue delay. 11. Upon request by the applicant, the competent authorities of a Party shall provide, without undue delay, information concerning the status of the application. 12. The competent authorities of each Party shall notify the applicant of the outcome of the application promptly after a decision is made. Where a decision is made to deny an application, the reason for the denial shall be made known to the applicant. 13. Where an authorisation or licence is required for the supply of a financial service and if the applicable requirements are fulfilled, the competent authorities of a Party shall grant the applicant an authorisation or licence within six months after the submission of the application is considered complete under the domestic laws and regulations of that Party. If it is not feasible for a decision to be made within six months, the competent authority shall notify the applicant without undue delay and shall endeavour to make a decision within a reasonable period of time thereafter.

ARTICLE 45

Prudential measures

str. 321. Notwithstanding any other provision of Chapters III (Trade in Services and Establishment) or V ter (Digital Trade), a Party shall not be prevented from adopting or maintaining reasonable measures for prudential reasons, including for:

- (a) the protection of investors, depositors, policy-holders, policy-claimants, persons to whom a fiduciary duty is owed by a financial service supplier, or any similar financial market participants; or
- (b) ensuring the integrity and stability of that Party's financial system. 2. Where such measures do not conform with the provisions of Chapters III (Trade in Services and Establishment) or V ter (Digital Trade), they shall not be used as a means of avoiding that Party's commitments or obligations under Chapters III (Trade in Services and Establishment) or V ter (Digital Trade).

ARTICLE 46

Confidential information

str. 33Nothing in this Section:

- (a) shall require any Party to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private; or

- (b) shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

ARTICLE 47

International standards

str. 33Each Party shall endeavour to ensure that internationally agreed standards for regulation and supervision in the financial services sector are implemented and applied in its territory. Such internationally agreed standards are, inter alia , the 'Core Principles for Effective Banking Supervision' of the Basel Committee, the 'Insurance Core Principles' of the International Association of Insurance Supervisors and the 'Objectives and Principles of Securities Regulation' of the International Organisation of Securities Commissions.

ARTICLE 48

Recognition of prudential measures

str. 33Where a Party recognises, by agreement or arrangement, prudential measures of a non-Party in determining how the Party's measures relating to financial services shall be applied, that Party shall afford adequate opportunity for another Party to negotiate its accession to such an agreement or arrangement, or to negotiate a comparable agreement or arrangement with it, under circumstances in which there would be equivalent regulation, oversight, implementation of such regulation and, if appropriate, procedures concerning the sharing of information between the parties to the agreement or arrangement. Where a Party accords such recognition autonomously, it shall afford adequate opportunity for another Party to demonstrate that such circumstances exist.

ARTICLE 49

Movement of natural persons

str. 341. This Section applies to measures affecting natural persons who are financial service suppliers of a Party, and natural persons of a Party who are employed by a financial service supplier of a Party, with respect to the supply of a financial service. Natural persons covered by a Party's specific commitments shall be allowed to supply the financial service in accordance with the terms of those commitments. 2. This Section shall not apply to measures affecting natural persons seeking access to the employment market of a Party, nor shall it apply to measures regarding nationality, residence or employment on a permanent basis. 3. This Section shall not prevent a Party from applying measures to regulate the entry of natural persons of another Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in a manner so as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment. 12

ARTICLE 50

Transfers of information and data processing

str. 34No Party shall take measures that prevent transfers of information into or out of the Party's territory or the processing of financial information, where such transfers of information or processing of financial information, are necessary for the conduct of the ordinary business of a financial service supplier of another Party. Nothing in this Article shall restrict the right of a Party to protect personal data, personal privacy and the confidentiality of individual records and accounts so long as such right is not used to circumvent the provisions of this Section.

ARTICLE 51

Sub-Committee on financial services

str. 341. A Sub-Committee on financial services composed of representatives of the Parties is hereby established. 2. The mandate of the Sub-Committee on financial services is set out in Annex VIII ter (Mandate of the Sub-Committee on financial services). 12 The sole fact of requiring a visa shall not be regarded as nullifying or impairing benefits under a specific commitment.

ARTICLE 52

Consultations

str. 351. A Party may request expert consultations with another Party regarding any matter arising under this Section between the requesting Party and the requested Party. The requested Party shall give sympathetic consideration to the request. The Parties shall aim at finding an appropriate solution and report the results of their consultations to the Sub-Committee on financial services. 2. Each Party involved in consultations according to paragraph 1 shall designate officials of the authorities specified in paragraph 6 of Annex VIII ter (Mandate of the Sub-Committee on financial services). 3. The Parties involved in the consultations shall treat any confidential or proprietary information exchanged in the same manner as the Party providing the information.

ARTICLE 53

Dispute settlement

str. 35In addition to the requirements set out in paragraph 49 of Annex XVII (Model Rules of Procedure for the Conduct of Arbitration Panels), the chair of the arbitration panel for disputes on prudential issues and other financial matters shall have the necessary experience or expertise relevant to the specific financial service under dispute.

SECTION III - ESTABLISHMENT

ARTICLE 54

Coverage

str. 35This Section shall apply to establishment in all sectors, with the exception of establishment in services sectors, including financial services.

ARTICLE 55

Definitions

ARTICLE 56

National treatment

str. 36With respect to establishment, and subject to the reservations set out in Annex X, each Party shall grant to juridical and natural persons of the other Party treatment no less favourable than that it accords to its own juridical and natural persons performing a like economic activity.

ARTICLE 57

Reservations

str. 37National treatment as provided for under Article 56 shall not apply to:

- (a) any reservation that is listed by a Party in Annex X;
- (b) an amendment to a reservation covered by paragraph (a) to the extent that the amendment does not decrease the conformity of the reservation with Article 56;
- (c) any new reservation adopted by a Party, and incorporated into Annex X which does not affect the overall level of commitments of that Party under this Agreement;

to the extent that such reservations are inconsistent with Article 56. 2. As part of the reviews provided for in Article 59 the Parties undertake to review at least every three years the status of the reservations set out in Annex X with a view to reducing or removing such reservations. 3. A Party may, at any time, either upon the request of another Party or unilaterally, remove in whole or in part reservations set out in Annex X by written notification to the other Parties. 4. A Party may, at any time, incorporate a new reservation into Annex X in accordance with paragraph 1(c) of this Article by written notification to the other Parties. On receiving such written notification, the other Parties may request consultations regarding the reservation . On receiving the request for consultations, the Party incorporating the new reservation shall enter into consultations with the other Parties.

ARTICLE 58

Right to regulate

str. 37Subject to the provisions of Article 56, each Party may regulate the establishment of juridical and natural persons.

ARTICLE 59

Final provisions

str. 37With the objective of progressive liberalisation of investment conditions, the Parties affirm their commitment to review the investment legal framework, the investment environment and the flow of investment between them consistent with their commitments in international investment agreements, no later than three years after the entry into force of this Agreement.

SECTION IV - PAYMENTS AND CAPITAL MOVEMENTS

ARTICLE 60

Objective and scope

str. 381. The Parties shall aim at the liberalisation of current payments and capital movements between them, in conformity with the commitments undertaken in the framework of the international financial institutions and with due consideration to each Party's currency stability. 2. This Section applies to all current payments and capital movements between the Parties. Specific provisions on current payments and capital movements are set out in Annex XI.

ARTICLE 61

Current account

str. 38The Parties shall allow, in freely convertible currency and in accordance with the Articles of Agreement of the International Monetary Fund, any payments and transfers of the Current Account between the Parties.

ARTICLE 62

Capital account

str. 38The Parties shall allow the free movements of capital relating to direct investments made in accordance with the laws of the host country and investments made in accordance with the provisions of Sections Trade in Services, Financial Services and Establishment of this Chapter, and the liquidation or repatriation of these capitals and of any profit stemming therefrom.

ARTICLE 63

Exceptions and safeguard measures

str. 381. Where, in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation of monetary policy or exchange rate policy in any Party, the Party concerned may take safeguard measures with regard to capital movements that are strictly necessary for a period not exceeding one year. The application of safeguard measures may be extended through their formal reintroduction.

str. 392. The Party adopting the safeguard measures shall inform the other Party forthwith and present, as soon as possible, a time schedule for their removal.

ARTICLE 64

Final provisions

str. 39The Parties shall consult each other with a view to facilitating the movement of capital between them in order to promote the objectives of this Agreement.

SECTION V - COMMON PROVISIONS

ARTICLE 65

Relation to other international agreements

str. 39With respect to matters related to this Chapter, the Parties confirm the rights and obligations existing under any bilateral or multilateral agreements to which they are a party.

ARTICLE 66

General exceptions

str. 391. For the purposes of this Chapter, Article XIV of the GATS is incorporated into and made part of this Agreement, mutatis mutandis . 2. The Parties understand that the measures referred to in Article XIV(b) of the GATS include environmental measures necessary to protect human, animal or plant life or health.

CHAPTER IV

PROTECTION OF INTELLECTUAL PROPERTY

ARTICLE 67

Protection of intellectual property

str. 391. The Parties shall grant and ensure adequate, effective and non-discriminatory protection of intellectual property rights, and provide for measures for the enforcement of such rights against infringement thereof, including counterfeiting and piracy, in accordance with this Chapter, Annex XII (Protection of Intellectual Property), and the international agreements referred to therein, and Appendix (Geographical Indications). 2.

str. 40The Parties shall accord to nationals of another Party treatment no less favourable than that they accord to their own nationals. Exemptions from this obligation must be in accordance with the substantive provisions of Articles 3 and 5 of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement)

3. The Parties shall grant to nationals of another Party treatment no less favourable than that accorded to nationals of another Party. Exemptions from this obligation must be in accordance with the substantive provisions of the TRIPS Agreement, in particular Articles 4 and 5. 4. Subject to paragraphs 2 and 3, each Party shall be free to establish its regime for the exhaustion of intellectual property rights. 5. Upon request of a Party, the Parties shall review this Chapter, Annex XII (Protection of Intellectual Property) and Appendix (Geographical Indications), with a view to further improving the levels of protection and to avoiding or remedying trade distortions caused by actual levels of protection of intellectual property rights.

ARTICLE 68

Principles

str. 401. The Parties reaffirm the principles set forth in Article 8 of the TRIPS Agreement. 2. Taking into consideration the underlying public policy objectives of domestic systems, the Parties recognise the need to promote innovation and creativity; as well as to facilitate the diffusion of information, knowledge, technology, culture and the arts through their respective intellectual property systems, while respecting the principles of transparency, and taking into account the interests of relevant stakeholders, including right holders, users and the general public.

ARTICLE 69

Intellectual property and public health

str. 411. The Parties recognise the importance of the Declaration on the TRIPS Agreement and Public Health, adopted on 14 November 2001 (Doha Declaration) by the Ministerial Conference of the WTO. 2. The Parties shall implement the Amendment of the TRIPS Agreement as adopted by the WTO General Council on 6 December 2005 (TRIPS Amendment). 3. This Chapter and Annex XII (Protection of Intellectual Property) shall be without prejudice to the Doha Declaration and the TRIPS Amendment.

CHAPTER V

GOVERNMENT PROCUREMENT

ARTICLE 70

Scope and coverage

str. 43This Chapter shall not apply to:
- (a) acquisition or rental of land, existing buildings, or other immovable property or the rights thereon;
- (b) non-contractual agreements or any form of assistance that a Party provides, including cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, subsidies and sponsorships agreements;
- (c) procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions or

services related to sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;

- (d) public employment contracts;
- (e) procurement conducted:
- (i) for the specific purpose of providing international assistance, including development aid;
- (ii) under a particular procedure or condition of an international agreement relating to the stationing of troops or relating to the joint implementation by the signatory countries of a project; or
- (ii) under a particular procedure or condition of an international organisation, or funded by international grants, loans or other assistance where the applicable procedure or condition would be inconsistent with this Chapter. - (f) financial services.

ARTICLE 71

Definitions

ARTICLE 72

Security and general exceptions

str. 451. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not disclosing any information that it considers necessary for the protection of its essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes. 2. Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail or a disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to prevent a Party from imposing or enforcing measures:

- (a) necessary to protect public morals, order or safety;
- (b) necessary to protect human, animal or plant life or health;
- (c) necessary to protect intellectual property; or
- (d) relating to goods or services of persons with disabilities, philanthropic institutions or prison labour. 3. The Parties understand that sub-paragraph 2 (b) includes environmental measures necessary to protect human, animal or plant life or health.

ARTICLE 73

Non-discrimination

str. 461. With respect to any measure regarding covered procurement, each Party, including its procuring entities, shall accord immediately and unconditionally to the goods and services of another Party and to the suppliers of another Party offering goods or services of any other Party, treatment no less favourable than that accorded to domestic goods, services and suppliers. 2. With respect to any measure regarding covered procurement, no Party, including its procuring entities, shall:

- (a) treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; or
- (b) discriminate against a locally established supplier on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of another Party. 3. Paragraphs 1 and 2 shall not apply to customs duties and other charges of any kind imposed on, or in connection with, importation, the method of levying such duties and charges or other import regulations, including restrictions and formalities, and measures affecting trade in services other than measures governing covered procurement.

ARTICLE 74

Use of electronic means

str. 461. The Parties shall endeavour to use electronic means of communication to permit efficient dissemination of information on government procurement, particularly as regards tender opportunities offered by entities, in accordance with the principles of transparency and non-discrimination. 2.

str. 47When conducting covered procurement by electronic means, a procuring entity shall:

- (a) ensure that the procurement is conducted using information technology systems and software, including those related to authentication and encryption of information, that are generally available and interoperable with other generally available information technology systems and software; and - (b) maintain mechanisms that ensure the integrity of requests for participation and tenders, including establishment of the time of receipt and the prevention of inappropriate access.

ARTICLE 75

Conduct of procurement

str. 47A procuring entity shall conduct covered procurement in a transparent and impartial manner that:

- (a) is consistent with this Chapter, using methods such as open tendering, selective tendering and limited tendering; and
- (b) prevents conflicts of interest and corrupt practices, in accordance with relevant domestic laws and regulations.

ARTICLE 76

Anticorruption measures

str. 47Each Party shall ensure that criminal or administrative measures exist to address corruption in its government procurement. These measures may include procedures to render ineligible for participation in the Party's procurements, either indefinitely or for a stated period, suppliers that that Party has determined to have engaged in fraudulent or other illegal actions in relation to government procurement in a Party's territory. Each Party shall also ensure that it has policies and procedures in place to eliminate, to the extent possible, or manage any potential conflict of interest on the part of those involved in or having influence over a procurement.

ARTICLE 77

Rules of origin

str. 47For purposes of covered procurement, each Party shall apply rules of origin to goods that it applies in the normal course of trade to imports of the same goods.

ARTICLE 78

Offsets

str. 47With regard to covered procurement, no Party, including its procuring entities, shall seek, take account of, impose or enforce any offset at any stage of the procurement.

ARTICLE 79

Information on the procurement system

str. 481. Each Party shall promptly publish any measure of general application regarding covered procurement, and any modification thereof, in the relevant electronic or paper medium that is widely disseminated and remains readily accessible to the public. 2. Each Party shall list in Appendix 8 to Annex XIII (Government Procurement) the electronic or paper medium through which a Party shall publish the information referred to in paragraph 1. 3. Each Party shall, upon request, provide another Party with an explanation relating to such information.

ARTICLE 80

Notices

str. 481. For each covered procurement, a procuring entity shall publish a notice of intended procurement in the electronic or paper medium listed in Appendix 8 to Annex XIII (Government Procurement), except in the circumstances referred to in Article 88 (Limited Tendering). Such medium shall be widely disseminated, and the notice shall remain accessible, at least until expiration of the time period indicated in the notice. The notice shall:

- (a) be accessible by electronic means free of charge through a single point of access for procuring entities covered under Appendix 1 to Annex XIII (Government Procurement), as specified in Appendix 8; and
- (b) be provided, at least through links in a gateway electronic site that is accessible free of charge for procuring entities covered under Appendix 2 or 3 to Annex XIII (Government Procurement), as specified in Appendix 8. 2. The Parties, including such procuring entities covered under Appendix 2 or 3 to Annex XIII (Government Procurement), are encouraged to publish their notices by electronic means free of charge through a single point of access. 3. Except as otherwise provided in this Chapter, each notice of intended procurement shall include the information specified in Appendix 11 to Annex XIII (Government Procurement). 4. Each Party shall encourage its procuring entities to publish in the appropriate paper or electronic medium listed in Appendix 8 to Annex XIII (Government Procurement), as early as possible in each fiscal year, a notice regarding their future procurement plans.

str. 49The notice of planned procurement should include the subject matter

of the procurement and the planned date of the publication of the notice of intended procurement. 5. A procuring entity covered under Appendix 2 or 3 to Annex XIII (Government Procurement) may use a notice of planned procurement as a notice of intended procurement provided that the notice of planned procurement includes as much of the information referred to in paragraph 3 as is available to the entity and a statement that interested suppliers should express their interest in the procurement to the procuring entity.

ARTICLE 81

Conditions for participation

str. 491. In establishing the conditions for participation and assessing whether a supplier satisfies such conditions, a Party, including its procuring entities:

- (a) shall limit any conditions for participation in a procurement to those that are essential to ensure that a supplier has the legal and financial capacities and the commercial and technical abilities to undertake the relevant procurement;
- (b) shall evaluate the financial capacity and the commercial and technical abilities of a supplier on the basis of that supplier's business activities both inside and outside the territory of the Party of the procuring entity;
- (c) shall base its evaluation solely on the conditions that the procuring entity has specified in advance in notices or tender documentation;
- (d) shall not impose the condition that, in order for a supplier to participate in a procurement, the supplier has previously been awarded one or more contracts by a procuring entity of a Party; and
- (e) may require relevant prior experience where essential to meet the requirements of the procurement. 2.

str. 50Where there is supporting evidence, and provided that this is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties, a Party, including its procuring entities, may exclude a supplier on grounds such as:

- (a) bankruptcy or insolvency;
- (b) false declarations;
- (c) significant or persistent deficiencies in performance of any substantive requirement or obligation under a prior contract or contracts;

- (d) final judgments in respect of serious crimes or other serious offences;
- (e) grave professional misconduct or acts or omissions that adversely reflect upon the commercial integrity of the supplier; or
- (f) failure to pay taxes.

ARTICLE 82

Registration systems and qualification procedures

str. 501. A Party, including its procuring entities, may maintain a supplier registration system under which interested suppliers are required to register and provide certain information. 2. A Party, including its procuring entities, shall not adopt or apply any registration system or qualification procedure with the purpose or the effect of creating unnecessary obstacles to the participation of suppliers of another Party in its procurement. 3. A procuring entity shall promptly inform any supplier that submits a request for participation in a procurement of its decision with respect to that request. Where an entity rejects a supplier's request for participation or ceases to recognise a supplier as qualified, that entity shall, upon request of the supplier, promptly provide the supplier with a written explanation of the reasons for its decision. 4. Where a procuring entity intends to use selective tendering, it shall allow all qualified suppliers to participate in a particular procurement, unless the procuring entity states in the notice of intended procurement any limitation on the number of suppliers that will be permitted to tender and the criteria for selecting the limited number of suppliers.

ARTICLE 83

Multi-use lists

str. 501. A procuring entity may maintain a multi-use list of suppliers, provided that a notice inviting interested suppliers to apply for inclusion on the list is published annually in the appropriate medium listed in Appendix 8 to Annex XIII (Government Procurement), and where published by electronic means, made available continuously in the electronic medium listed in Appendix 8 to Annex XIII (Government Procurement). Where a multi-use list will be valid for three years or less, a procuring entity may publish the notice only once, at the beginning of the period of validity of the list. 2. The notice referred to in paragraph 1 shall include the information specified in Appendix 11 to Annex XIII (Government Procurement). 3. A procuring entity shall allow suppliers to apply at any time for inclusion on a multi-use list and shall include on the list all qualified suppliers within a reasonably short time.

str. 51Where a procuring entity rejects a supplier's application for inclusion on a multi-use list or removes a supplier from a multi-use list, that entity shall promptly inform the supplier and, upon request of the supplier, promptly provide the supplier with a written explanation of the reasons for its decision.

ARTICLE 84

Tender documentation

str. 511. A procuring entity shall make tender documentation available to suppliers that includes all information necessary to permit suppliers to prepare and submit responsive tenders. Unless already provided for in the notice of intended procurement, such documentation shall include a complete description of the information specified in Appendix 11 to Annex XIII (Government Procurement). 2. Where a procuring entity does not offer free direct access to the entire tender documents and any supporting documents by electronic means, that procuring entity shall make promptly available the tender documentation at the request of any interested supplier of the Parties. The procuring entity shall also promptly reply to any reasonable request for relevant information by any interested or participating supplier, provided that such information does not give that supplier an advantage over other suppliers.

ARTICLE 85

Technical specifications

str. 511. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe any conformity assessment procedure with the purpose or the effect of creating unnecessary obstacles to trade between the Parties. 2. In prescribing the technical specifications for the goods or services being procured, a procuring entity shall, where appropriate:

- (a) set out the technical specification in terms of performance and functional requirements, rather than design or descriptive characteristics; and
- (b) base the technical specification on international standards where such exist or otherwise, on national technical regulations, recognised national standards or building codes. 3. Where design or descriptive characteristics are used in the technical specifications, a procuring entity should indicate, where appropriate, that it will consider tenders of equivalent goods or services that demonstrably fulfil the requirements of the procurement by including words such as 'or equivalent' in the tender documentation. 4. A procuring entity shall not prescribe any technical specifications that require or refer to a particular trademark or trade name, patent, copyright, design or type, specific origin, producer or supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement requirements and provided that, in such cases, the entity includes words such as 'or equivalent' in the tender documentation. 5. A procuring entity shall not seek or accept, in a manner that would have the effect of precluding competition, advice that may be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in the procurement. 6. For greater certainty, a Party, including its procuring entities, may, in accordance with this Article, prepare, adopt, or apply technical specifications to promote the conservation of natural resources or protect the environment. 7. For greater certainty, this Chapter is not intended to preclude a Party, including its procuring entities, from preparing, adopting or applying technical specifications required to protect sensitive government information, including specifications that may affect or limit the storage, hosting or processing of such information outside the territory of the Party.

ARTICLE 86

Modifications of tender documentation and technical specifications

str. 52Where, a procuring entity modifies the criteria or requirements set out in a notice or tender documentation provided to participating suppliers, or amends or reissues a notice or tender documentation, it shall transmit in writing all modifications, amended or re-issued notice or tender documentation:

- (a) to all suppliers that are participating at the time of the modification, amendment or re-issuance, if known, and in all other cases, in the same manner as the original information was made available; and
- (b) in adequate time and considering the nature and complexity of procurement to allow such suppliers to modify and re-submit amended tenders, as appropriate.

ARTICLE 87

Time periods

str. 52A procuring entity shall, consistent with its own reasonable needs, provide suppliers sufficient time to prepare and submit requests for participation and responsive tenders, taking into account in particular the nature and complexity of the procurement.

Each Party shall apply time periods as specified in Appendix 9 to Annex XIII (Government Procurement). Such time periods, including any extension of the timeperiods, shall be the same for all interested or participating suppliers.

ARTICLE 88

Limited tendering

str. 531. Provided that it does not use this provision for the purpose of avoiding competition among suppliers or in a manner that discriminates against suppliers of another Party or protects domestic suppliers, a procuring entity may use limited tendering and choose not to apply Articles 80 (Notices), 81 (Conditions for participation), 82 (Registration systems and qualification procedures), 83 (Multi-use lists), 84 (Tender documentation), 87 (Time periods), 89 (Electronic auctions), 90 (Negotiations), 91 (Treatment of tenders) and 92 (Awarding of contracts) only under the following circumstances:

- (a) provided that the requirements of the tender documentation are not substantially modified:
- (i) no tenders were submitted or no supplier requested participation;
- (ii) no tenders that conform to the essential requirements of the tender documentation were submitted;
- (iii) no suppliers satisfied the conditions for participation; or
- (iv) the tenders submitted have been collusive according to the Parties' domestic laws and regulations;
- (b) where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for any of the following reasons:
- (i) the requirement is for a work of art;
- (ii) the protection of patents, copyrights or other exclusive rights; or
- (iii) due to an absence of competition for technical reasons;
- (c) for additional deliveries by the original supplier of goods and services that were not included in the initial procurement where a change of supplier for such additional goods and services:
- (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services or installations procured under the

initial procurement; and

- (ii) would cause significant inconvenience or substantial duplication of costs to the procuring entity;
- (d) insofar as strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the procuring entity, the goods or services could not be obtained in time using an open or selective tendering procedure;
- (e) insofar as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the procuring entity, such as emergency and catastrophe provided for in a Party's domestic laws and regulations, the goods or services could not be obtained in time using an open or selective tendering procedure. For the purposes of this paragraph, lack of planning of a procuring entity in relation with the available funds within a specific period of time shall not constitute an unforeseeable event;
- (f) for goods purchased on a commodity market;
- (g) where a procuring entity procures a prototype or a first good or service that is developed at its request in the course of, and for, a particular contract for research, experiment, study or original development 13 ;
- (h) for purchases made under exceptionally advantageous conditions that only arise in the very short term in the case of unusual disposals such as those arising from liquidation, receivership or bankruptcy, but not for routine purchases from regular suppliers; or
- (i) where a contract is awarded to a winner of a design contest provided that:
- (i) the contest has been organised in a manner that is consistent with this Chapter, in particular with respect to the publication of a notice of intended procurement; and
- (ii) the participants are judged by an independent jury with a view to a design contract being awarded to a winner. 2. A procuring entity shall prepare a report in writing on each contract awarded under paragraph 1. The report shall include the name of the procuring entity, the value and kind of goods or services procured, and a statement indicating the circumstances and conditions described in paragraph 1 that justified the use of limited tendering. 13 Original development of a first good or service may include limited production or supply in order to incorporate the results of field testing and to demonstrate that the good or service is suitable for production or supply in quantity to acceptable quality standards, but does not include quantity production or supply to establish commercial viability or to recover research and development costs.

ARTICLE 89

Electronic auctions

str. 551. Where a procuring entity intends to conduct a covered procurement using an electronic auction, it shall provide each participant, before commencing the electronic auction, with:

- (a) the automatic evaluation method, including the mathematical formula, that is based on the evaluation criteria set out in the tender documentation and that will be used in the automatic ranking or re-ranking during the auction;
- (b) the results of any initial evaluation of the elements of its tender where the contract is to be awarded on the basis of the most advantageous tender; and
- (c) any other relevant information relating to the conduct of the auction.

ARTICLE 90

Negotiations

str. 551. A Party may provide for its procuring entities to conduct negotiations in the context of covered procurement:

- (a) where the entity has indicated such intent in the notice of intended procurement pursuant to Article 80 (Notices); or
- (b) where it appears from the evaluation that no tender is obviously the most advantageous in terms of the specific evaluation criteria set out in the notice or tender documentation. 2. A procuring entity shall:
- (a) ensure that any elimination of suppliers participating in negotiations is carried out in accordance with the evaluation criteria set out in the notice or tender documentation; and
- (b) where negotiations are concluded, provide a common deadline for the remaining participating suppliers to submit any new or revised tenders.

ARTICLE 91

Treatment of tenders

str. 561. A procuring entity shall receive, open and treat all tenders under procedures that guarantee the fairness and impartiality of the procurement process and the confidentiality of tenders. 2. A procuring entity shall not penalise any supplier whose tender is received after the time specified for receiving tenders if the delay is due solely to mishandling on the part of the procuring entity. 3. Where a procuring entity provides suppliers with an opportunity to correct unintentional errors of form between the opening of tenders and the awarding of the contract, the entity shall provide the same opportunity to all participating suppliers.

ARTICLE 92

Awarding of contracts

str. 561. To be considered for award, a tender shall be submitted in writing and shall, at the time of opening, comply with the essential requirements set out in the notices and tender documentation and be from a supplier that satisfies the conditions for participation. 2. Unless a procuring entity determines that it is not in the public interest to award a contract, the entity shall award the contract to the supplier that it has determined to be capable of fulfilling the terms of the contract and that, based solely on the evaluation criteria specified in the notices and tender documentation, has submitted:

- (a) the most advantageous tender; or
- (a) where price is the sole criterion, the lowest price. 3. Where a procuring entity receives a tender with a price that is abnormally lower than the prices in other tenders submitted, it may verify with the supplier that it satisfies the conditions for participation and is capable of fulfilling the terms of the contract. 4. A procuring entity shall not use option clauses, cancel a procurement or modify awarded contracts in a manner that circumvents the obligations of this Chapter.

ARTICLE 93

Transparency of procurement information

str. 571. A procuring entity shall promptly inform participating suppliers of its contract award decisions and, upon request of a supplier, shall do so in writing. Subject to Article 94 (Disclosure of information), a procuring entity shall, upon request, provide an unsuccessful supplier with an explanation of the reasons why it did not select its tender and the relative advantages of the successful supplier's tender. 2. Promptly and, in any event, no later than 30 days after the award of each contract, a procuring entity shall publish in a paper or electronic medium listed in Appendix 8 to Annex XIII (Government Procurement), a notice that includes at least the following information about the contract:

- (a) a description of the goods or services procured;
- (b) the name and address of the procuring entity;
- (c) the name and, if applicable, the address of the successful supplier;
- (d) the value of the successful tender or the highest and lowest offers taken into account in the award of the contract;
- (e) the date of award; and
- (f) the type of procurement method used, and in cases where limited tendering was used in accordance with Article 88 (Limited tendering), a description of the circumstances justifying the use of limited tendering. 3. Where the entity publishes the notice only in an electronic medium, the information shall remain readily accessible for a reasonable period of time. 4. Each procuring entity shall, for a period of at least three years from the date of the award of a contract, maintain the documentation and reports of tendering procedures and contract awards relating to covered procurement, including the reports provided for in Article 88 (Limited Tendering), and the data that ensures the appropriate traceability of the conduct of covered procurement by electronic means.

ARTICLE 94

Disclosure of information

str. 58Upon request of another Party, a Party shall provide promptly any information necessary to determine whether a procurement was conducted fairly, impartially and in accordance with this Chapter, including information on the characteristics and relative advantages of the successful tender. 2. In cases where the release of such information would prejudice competition in future tenders, the Party that receives the information shall not disclose it to any supplier without the explicit consent of, the Party that provided the information. 3. Notwithstanding any other provision of this Chapter, no Party, including its procuring entities, shall provide information to a particular supplier that might prejudice fair competition between suppliers. 4. Nothing in this Chapter shall be construed to require a Party, including its procuring entities, authorities and review bodies, to disclose confidential information where disclosure:

- (a) would impede law enforcement;
- (b) might prejudice fair competition between suppliers;
- (c) would prejudice the legitimate commercial interests of particular persons, including the protection of intellectual property; or
- (d) would otherwise be contrary to the public interest.

ARTICLE 95

Domestic review procedures for supplier challenges

str. 581. Each Party shall provide a timely, effective, transparent and non-discriminatory administrative or judicial review procedure, in accordance with the principle of due process, through which a supplier may challenge:

- (a) a breach of this Chapter; or
- (b) where a supplier does not have the right to challenge directly a breach of this Chapter under the Party's domestic laws and regulation a failure to comply with a Party's measures implementing this Chapter,

arising in the context of a covered procurement, in which the supplier has, or has had, an interest. 2. The procedural rules for all challenges shall be in writing and made generally available. 3. In the event of a complaint by a supplier, arising in the context of covered procurement in which the supplier has, or has had, an interest, that there has been a breach or a failure as referred to in paragraph 1, the Party of the procuring entity shall encourage, if appropriate, the entity and the supplier to seek resolution of the complaint through consultations. 4.

str. 59Each supplier shall be allowed a sufficient period of time to prepare and submit a challenge, which in no case shall be less than ten days from the time when the basis of the challenge became known or reasonably should have become known to the supplier. 5. Each Party shall establish or designate at least one impartial administrative or judicial authority that is independent of its procuring entities to receive and review a challenge by a supplier arising in the context of a covered procurement. 6. Where a body other than an authority referred to in paragraph 5 initially reviews a challenge, each Party shall ensure that the supplier may appeal the initial decision to an impartial administrative or judicial authority that is independent of the procuring entity whose procurement is the subject of the challenge. 7. Each Party shall ensure that a review body that is not a court shall either have its decisions subject to judicial review or have procedures that provide that:

- (a) the procuring entity shall respond in writing to the challenge and disclose all relevant documents to the review body;
- (b) the participants to the proceedings ('participants') shall have the right to be heard prior to a decision of the review body being made on the challenge;
- (c) the participants shall have the right to be represented and accompanied;
- (d) the participants shall have access to all proceedings;
- (e) the participants shall have the right to request that the proceedings take place in public and that witnesses may be presented; and
- (f) the review body shall make its decisions or recommendations in a timely fashion, in writing, and shall include an explanation of the basis for each decision or recommendation. 8. Each Party shall adopt or maintain procedures that provide for:
- (a) rapid interim measures to preserve the supplier's opportunity to participate in the procurement. Such interim measures may result in the suspension of the procurement process. The procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account when deciding whether such measures should be applied. Just cause for not acting shall be provided in writing; and
- (b) where a review body has determined that there has been a breach of this Chapter or a failure as referred to in paragraph 1, corrective action that may include compensation for the loss or damages suffered. A Party may

limit compensation for the loss or damages suffered to either the costs reasonably incurred in the preparation of the tender or in bringing the complaint, or both.

ARTICLE 96

Modifications and rectifications to coverage

str. 601. A Party may make rectifications of a purely formal nature to its coverage under this Chapter or minor amendments to its Appendices to Annex XIII (Government Procurement), provided that it notifies the other Parties in writing and no Party objects in writing within 45 days from the receipt of the notification. A Party that makes such a rectification or minor amendment does not need to provide compensatory adjustments to the other Parties. 2. A Party may otherwise modify its coverage under this Chapter provided that:

- (a) it notifies the other Parties in writing and offers at the same time acceptable compensatory adjustments to maintain a level of coverage comparable to that existing prior to the modification, except where provided for in paragraph 3; and
- (b) no Party objects in writing within 45 days from the receipt of the notification. 3. A Party need not provide compensatory adjustments where the Parties agree that the proposed modification covers a procuring entity over which a Party has effectively eliminated its control or influence. If a Party objects to the assertion that such government control or influence has been effectively eliminated, the objecting Party may request further information or consultations with a view to clarifying the nature of any government control or influence and reaching an agreement on the procuring entity's continued coverage under this Chapter.

ARTICLE 97

Facilitation of participation by small and medium-sized enterprises

str. 61The Parties recognise the important contribution that small and medium-sized enterprises (SMEs) can make to economic growth and employment and the importance of facilitating the participation of SMEs in government procurement. 2. The Parties also recognise the importance of business alliances between suppliers of each Party, in particular between SMEs, including the joint participation in tendering procedures, provided that this is not used in a manner that is inconsistent with this Chapter. 3. The Parties may exchange information and experiences related to their measures and policies used in order to contribute, promote, encourage or facilitate SMEs participation in government procurement. 4. To facilitate participation of SMEs in covered procurement, each Party may, if appropriate:

- (a) share information related to SMEs, including relevant electronic portals;
- (b) endeavour to make all tender documentation available free of charge; and
- (c) undertake any other activity designed to facilitate the participation of SMEs in government procurement covered by this Chapter.

ARTICLE 98

Cooperation

str. 611. The Parties recognise the importance of cooperation with a view to achieving a better understanding of their respective government procurement systems, as well as a better access to their respective markets, in particular for small business suppliers. 2. The Parties shall endeavour to cooperate in matters such as:
2. (a) development and use of electronic communications in government procurement systems; and
3. (b) exchange of experiences and information, such as regulatory frameworks, best practice and statistics.

ARTICLE 99

Contact points on government procurement

str. 62Each Party shall designate and notify a contact point for the purposes of facilitating communication, coordination and efforts between the Parties on matters relating to the implementation of this Chapter, such as:

- (a) cooperation between the Parties in accordance with Article 98 (Cooperation);
- (b) facilitation of SME's participation in covered procurement in accordance with Article 97 (Facilitation of participation by small and medium-sized enterprises);
- (c) consideration of further negotiations in accordance with Article 100 (Further negotiations); and - (d) identification and resolution of any matter that may arise under this Chapter.

ARTICLE 100

Further negotiations

str. 62If, following the entry into force of the Protocol Amending the Free Trade Agreement between the EFTA States and the Republic of Chile, Done at Geneva, this 24th day of June 2024, a Party offers a non-Party additional benefits with regard to its respective government procurement market access coverage agreed under this Chapter, it shall agree, upon request of another Party, to enter into negotiations with a view to extending coverage under this Chapter on a reciprocal basis.

CHAPTER V bis

SMALL AND MEDIUM-SIZED ENTERPRISES

ARTICLE 101

General principles

str. 631. The Parties, recognise that small and medium-sized enterprises, including microsized enterprises (SMEs), are a fundamental part of economic development, employment creation and innovation. 2. The Parties recognise that non-tariff barriers represent a competitiveness challenge for SMEs. They also recognize that, in addition to the provisions of this Chapter, there are other provisions in the Agreement that may be particularly beneficial to SMEs. 3. The Parties seek to promote dialogue and information sharing in order to enhance the ability of SMEs to take advantage of the opportunities arising from this Agreement.

ARTICLE 102

Information exchange and transparency

str. 631. Each Party shall establish or maintain publicly and freely accessible websites containing information regarding this Agreement, including:

- (a) the text of this Agreement, including all annexes, tariff schedules and product-specific rules of origin;
- (b) a summary of this Agreement; and
- (c) information for SMEs, containing:
- (i) a description of the provisions of this Agreement that the Party considers to be relevant to SMEs; and
- (ii) any additional information that the Party considers useful for SMEs interested in benefiting from the opportunities granted by this Agreement. 2. Each Party shall include, on the websites referred to in paragraph 1, links to:
- (a) the equivalent websites of the other Parties; and

- (b) websites of its government agencies and other appropriate entities that provide information that the Party considers useful to any SME interested in trading, investing or doing business in the territory of the Parties. 3. The information described in subparagraph 2(b) shall at least include:
- (a) a description of:
- (i) trade procedures informing interested parties of the practical steps for the import, export and transit of goods;
- (ii) regulations and procedures on intellectual property rights, including geographical indications;
- (iii) rules on government procurement;
- (iv) company registration procedures; and
- (v) employment regulations, including, where applicable, collective bargaining agreements and their registration procedures. - (b) technical regulations, standards, and measures related to importation and exportation;
- (c) sanitary and phytosanitary measures relating to importation and exportation; and
- (d) a database containing government procurement notices. 4. Each Party shall endeavour, as far as practicable in English, to include one or several links in the websites provided for in paragraph 1 to databases that are electronically searchable and that include the following information with respect to access to its market:

- (a) rates of customs duties and quotas, including most-favoured nation (MFN), rates concerning non-MFN countries and preferential rates;
- (b) excise duties;
- (c) value added taxes and/or sales taxes; and
- (d) customs or other fees, including other product specific fees. 5. Each Party shall ensure that the information and links referred to in paragraphs 1 to 4 that it maintains on its websites are up-to-date and accurate. 6. Each Party shall make the information referred to in paragraphs 1 to 3 available in English.

ARTICLE 103

Activities and cooperation

str. 651. The Parties recognise the importance of cooperating to achieve progress in reducing barriers to SMEs' access to their respective markets. 2. Cooperation between the Parties shall take the form of exchange of information and dialogue on issues of mutual interest and be channelled through SME contact points. 3. To this end, each Party shall, upon entry into force of this Agreement, promptly designate a SME contact point and notify the other Parties of the contact details as well as, thereafter, of any changes to its SME contact point. 4. Taking into account their SMEs' specific needs in the implementation of this Agreement, SME contact points shall seek to:

- (a) exchange SME-related information, including any matter brought to their attention by SMEs in their trade and investment activities with another Party such as non-tariff measures adversely affecting trade outcomes for SMEs;
- (b) exchange policy experiences for SMEs, including in the development of digital windows that facilitate the efforts of SMEs to establish operations in another Party, as well as in other assistance programs and tools;
- (c) ensure that the information referred to in Article 102 (Information exchange and transparency) is up-to-date and relevant for SMEs, and recommend any additional information that the Parties may publish; and
- (d) consider any other matters of interest to SMEs. 5. Each Party may raise any matter arising in the activities of the SME contact points with the Joint Committee. 6. The SME contact points may cooperate with experts, external organisations and SME stakeholders, as appropriate, in carrying out their activities.

ARTICLE 104

Non-application of dispute settlement

str. 65No Party may have recourse to Chapter X (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER V ter

DIGITAL TRADE

ARTICLE 105

Definitions

- (h) 'unsolicited commercial electronic messages' means electronic messages for commercial purposes without the consent of the recipient or against the explicit rejection of the recipient; and

str. 67- (i) 'computing facilities' means computer servers and storage devices for processing or storing information for commercial use.

ARTICLE 106

Scope

str. 671. This Chapter applies to measures of the Parties affecting trade enabled by electronic means. 2. In the event of any inconsistency between this Chapter and Section II (Financial Services) of Chapter III (Trade in Services and Establishment) the latter shall prevail to the extent of the inconsistency. 3. This Chapter shall not apply to audio-visual services.

ARTICLE 108

Right to regulate

str. 68The Parties reaffirm the right to regulate in the area of electronic commerce in conformity with this Chapter to achieve legitimate policy objectives.

ARTICLE 109

Customs duties

str. 681. No Party shall impose customs duties on electronic transmissions. 2. For greater certainty, paragraph 1 shall not preclude a Party from imposing internal taxes, fees, or other charges on electronic transmissions, provided that they are imposed in a manner consistent with this Agreement.

ARTICLE 110

Electronic authentication, trust services and contracts by electronic means

str. 681. No Party shall deny the legal effect and admissibility as evidence in legal proceedings of an electronic document, electronic signature, electronic seal, electronic time stamp or of data sent and received using an electronic registered delivery service, solely on the ground that it is in electronic form. 2. No Party shall adopt or maintain measures that would:

- (a) prohibit parties to an electronic transaction from mutually determining the appropriate electronic authentication methods for their transaction; or
- (b) prevent parties to an electronic transaction from being able to prove to judicial or administrative authorities that the use of electronic authentication or an electronic trust service in that transaction complies with the applicable legal requirements. 3.

str. 69Notwithstanding paragraph 2, each Party may require that for a particular category of transactions, the method of electronic authentication or trust service is either certified by an authority accredited in accordance with its domestic laws and regulations or that the method meets certain performance standards which shall be objective, transparent and non-discriminatory and shall only relate to the specific characteristics of the category of transactions concerned. 4. Except to the extent provided under a Party's domestic laws and regulations in relation to certain types of contracts, a Party shall not deny that contracts may be concluded by electronic means. 5. Each Party shall ensure that its domestic laws and regulations do not deprive electronic contracts of legal effect and validity solely on the ground that contracts have been made by electronic means.

ARTICLE 111

Paperless trade administration

str. 691. Each Party shall make all trade administration documents publicly available in electronic form. 2. Each Party shall accept electronic versions of trade administration documents as legal equivalents of paper documents except if:

- (a) there is a domestic or international legal requirement to the contrary; or
- (b) doing so would reduce the effectiveness of the trade administration process.

ARTICLE 112

Open internet access

str. 69Subject to applicable domestic laws and regulations, each Party shall adopt or maintain appropriate measures to ensure that end-users in its territory are able to:

- (a) access, distribute and use services and applications of their choice available through the Internet, subject to reasonable and nondiscriminatory network management;
- (b) connect devices of their choice to the Internet, provided that such devices comply with the requirements in the territory where they are used and do not harm the network; and
- (b) have access to information on the network management practices of their Internet access service supplier.

ARTICLE 113

Online consumer trust

str. 70Each Party shall adopt or maintain measures to ensure the effective protection of consumers engaging in electronic commerce transactions, including but not limited to measures that:

- (a) proscribe fraudulent and deceptive commercial practices;

str. 70- (b) require suppliers of goods and services to act in good faith and abide by fair commercial practices, including through the prohibition of charging consumers for unsolicited goods and services;
- (c) require suppliers of goods and services to provide consumers with clear and thorough information regarding their identity and contact details 14 , as well as information regarding the goods and services, the transaction and the applicable consumer rights; and
- (d) grant consumers access to redress to claim their rights, including a right to remedies in cases where goods or services are paid and not delivered or provided as agreed. 2. The Parties recognise the importance of entrusting their consumer protection agencies or other relevant bodies with adequate enforcement powers and the importance of cooperation between their agencies in the enforcement of their respective laws and regulations related to consumer protection and online consumer trust. 3. The Parties recognise the importance of promoting effective policy frameworks relating to consumer product safety.

ARTICLE 114

Unsolicited commercial electronic messages

str. 701. In order to protect users effectively against unsolicited commercial electronic messages, each Party shall adopt or maintain measures that:

- (a) require suppliers of commercial electronic messages to facilitate the ability of recipients to stop the sending of such messages; and
- (b) require the consent, as specified according to the domestic laws and regulations of each Party, of recipients to receive commercial electronic messages. 2. Each Party shall provide access to recourse against suppliers of unsolicited commercial electronic messages who do not comply with its measures referred to in paragraph 1. 14 In the case of intermediary service suppliers, this also includes the identity and contact details of the actual supplier of the goods and services.

ARTICLE 115

Cross-border data flows and localisation of computing facilities

str. 711. The Parties commit to ensuring cross-border data flows to facilitate digital trade. To that end, cross-border data flows shall not be restricted between the Parties by: 15

- (a) requiring the use of computing facilities or network elements in the Party's territory for processing, including by imposing the use of computing facilities or network elements that are certified or approved in the territory of the Party;
- (b) requiring the localisation of data in the Party's territory for storage or processing;
- (c) prohibiting storage or processing in the territory of another Party; or
- (d) making the cross-border transfer of data contingent upon use of computing facilities or network elements in the Party's territory or upon localisation requirements in the Party's territory. 2. Nothing in this Article shall prevent a Party from adopting or maintaining measures inconsistent with paragraph 1 to achieve a legitimate public policy objective 16 , provided that the measure:

- (a) is not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade; and
- (b) does not impose restrictions on transfers of information that are greater than necessary to achieve the objective. 17

ARTICLE 116

Electronic payments and invoicing

str. 711. The Parties recognise the pivotal role of electronic payments in enabling electronic commerce and the rapid growth of electronic payments. The Parties agree to

15 With respect to financial services, this provision applies as long as the financial supervisory authorities have access to the necessary data for fulfilling their supervisory tasks. 16 For the purposes of this Article, 'legitimate public policy objective' shall be interpreted in an objective manner and shall enable the pursuit of objectives such as the protection of public security, public morals, human, animal or plant life or health, the maintenance of public order or other similar objectives of public interest, taking into account the evolving nature of digital technologies. 17 For greater certainty, paragraph 2 does not affect the interpretation of other exceptions in this Agreement and their application to this Article, nor the right of a Party to invoke any of them.

support the development of efficient, safe and secure cross-border electronic payments by fostering the adoption and use of internationally accepted standards, promoting interoperability and the interlinking of payment infrastructures, and encouraging useful innovation and competition in the payments ecosystem.

str. 722. The Parties recognise the importance of e-invoicing which increases the efficiency, accuracy and reliability of commercial transactions and agree to promote the adoption of interoperable systems for e-invoicing. 3. The Parties shall support and facilitate the adoption of e-invoicing by undertakings. To this end, the Parties shall endeavour to:

- (a) promote the existence of underlying infrastructure to support einvoicing; and
- (b) generate awareness of and build capacity for e-invoicing.

ARTICLE 117

Protection of personal data and privacy

str. 721. The Parties recognise that the protection of personal data and privacy is a fundamental right and that high standards in this regard contribute to the development of digital trade and trust therein. 2. Each Party shall adopt or maintain measures it deems appropriate to ensure a high level of protection of personal data and privacy, including through the adoption and application of rules for the cross-border transfer of personal data. Nothing in this Agreement shall affect the protection of personal data and privacy afforded by the Parties' respective measures. 3. The Parties shall inform each other about any measures referred to in paragraph

2.

ARTICLE 118

Transfer of or access to source code

str. 721. No Party shall require the transfer of, or access to, the source code of software or parts thereof owned by a natural or juridical person of another Party as a condition for the import, distribution, sale or use of such software or products containing such software in its territory. 2.

str. 73This Article shall not apply to:

- (a) requirements by a court or administrative tribunal;

- (b) intellectual property rights and their protection and enforcement;

str. 73- (c) competition law and its enforcement;
- (d) the right of a Party to take measures in accordance with Chapter V (Government Procurement);
- (e) requirements by competent authorities to verify the conformity of goods and services with legal requirements; or
- (f) voluntary transfer or granting of access to source code on a commercial basis by a natural or juridical person of a Party.

ARTICLE 119

Cooperation on electronic commerce

str. 74The Parties may engage in a dialogue on regulatory issues of mutual interest raised in relation to electronic commerce, which could, inter alia , address the following issues:

- (a) the treatment of unsolicited commercial electronic messages;
- (b) interoperability of infrastructures, such as secure electronic authentication and payments;
- (c) the use of electronic commerce by micro, small and medium sized enterprises;
- (d) digital inclusion, including participation of women, rural populations, low socio-economic groups and Indigenous Peoples;
- (e) consumer protection; and
- (f) other issues relevant for the development of electronic commerce. 2. Such a dialogue may include exchange of information on the Parties' respective domestic laws and regulations on these issues, as well as on the implementation of such domestic laws and regulations.

ARTICLE 120

General exceptions

str. 74For the purposes of this Chapter, Article XX of the GATT 1994 and Article XIV of the GATS apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis .

ARTICLE 121

Security exceptions

str. 74For the purposes of this Chapter, Article XXI of the GATT 1994 and Article XIV bis of the GATS apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis.

ARTICLE 122

Review

str. 74The Parties shall review the implementation of this Chapter and assess its functioning in the Joint Committee, particularly in light of relevant changes affecting digital trade that might arise from new business models or technologies.

CHAPTER V quater

SECTION I

ARTICLE 123

Context and objectives

str. 751. The Parties recall the Stockholm Declaration on the Human Environment of 1972, the Rio Declaration on Environment and Development of 1992, Agenda 21 on Environment and Development of 1992, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022, the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022, the Rio+20 Outcome Document 'The Future We Want' of 2012 and the UN 2030 Agenda for Sustainable Development of 2015, the WTO Joint Declaration on Trade and Women's Economic Empowerment of 2017, the Convention on the Elimination of all Forms of Discrimination against Women of 1979 and the commitments under the Beijing Declaration and Platform for Action of 1995, noting in particular those articles and strategic objectives related to women's equal access to markets, trade, resources, information and training opportunities. 2. The Parties shall promote sustainable development which encompasses economic development, social development and environmental protection, all three being interdependent and mutually reinforcing. They underline the benefit of cooperation on trade and investment related aspects of labour, environmental and gender issues as part of a global approach to trade and sustainable development. 3. The Parties commit to promote the development of international trade and investment as well as their preferential economic relationship in a manner that contributes to inclusive economic and sustainable development.

ARTICLE 124

Right to regulate and levels of protection

str. 751. Recognising the right of each Party to establish its own levels of environmental and labour protection, and to adopt or modify accordingly its domestic laws, regulations and policies, each Party shall seek to ensure that its domestic laws, regulations and policies provide for and encourage high levels of environmental and labour protection. Such levels of protection shall be consistent with international labour standards and the commitments of each Party under multilateral environmental agreements, as referred to

in this Chapter. Each Party shall strive to further improve the levels of protection provided for in those laws, regulations and policies. 2. When preparing and implementing measures related to the environment or labour conditions that affect trade or investment between them, the Parties shall take account of available scientific and technical information, in first instance from recognised technical and scientific bodies, as well as relevant and available international standards, guidelines and recommendations.

ARTICLE 125

Upholding levels of protection

str. 761. No Party shall fail to effectively enforce, through a sustained or recurring course of action or inaction, its domestic environmental and labour laws or regulations in a manner affecting trade or investment between the Parties. 2. No Party shall weaken or reduce the level of environmental or labour protection provided by its domestic laws and regulations in order to encourage trade or investment. 3. No Party shall waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws or regulations in order to encourage trade or investment. 4. No Party shall apply its domestic environmental and labour laws and regulations in a manner which would constitute a disguised restriction on trade or investment.

ARTICLE 126

Responsible business conduct

str. 761. The Parties recognise the importance to promote responsible business conduct, including responsible management of supply chains by businesses. In this regard, the Parties acknowledge the importance of internationally recognised principles and guidelines, such as the OECD Guidelines for Multinational Enterprises, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the UN Global Compact and the UN Guiding Principles on Business and Human Rights. 2. Each Party shall:
2. (a) encourage enterprises operating in its territory or jurisdiction to adopt voluntarily policies and practices of responsible business conduct that contribute to the achievement of sustainable development and are consistent with internationally recognised principles, standards and guidelines that have been endorsed or are supported by that Party; and

- (b) support the dissemination and use of relevant international instruments that have been endorsed or are supported by that Party, as referred to in paragraph 1.

ARTICLE 127

Procedural guarantees

str. 77Each Party shall ensure that administrative and judicial proceedings comply with due process of law and are accessible and available in order to allow for timely actions against violations of its domestic environmental or labour laws or regulations and to provide for effective remedies.

ARTICLE 128

Public participation, awareness and submissions

str. 771. Each Party shall encourage public dialogue with and among non-state actors as regards the development of laws, regulations and policies covered by this Chapter. 2. Each Party shall promote public awareness of its domestic laws, regulations and policies covered by this Chapter, as well as its enforcement and compliance procedures, by ensuring that information is available to stakeholders and by taking steps to improve the knowledge and understanding of workers, employers and their representatives. 3. The Parties shall provide their stakeholders with the opportunity to share comments and make recommendations regarding the implementation of this Chapter, in accordance with domestic procedures. 4. Each Party shall provide for the receipt of and give due consideration to submissions from the public on matters related to this Chapter, including information regarding the Party's implementation of this Chapter. Each Party shall, in accordance with its domestic procedures, respond in writing to such submissions in a timely manner.

ARTICLE 129

Cooperation

str. 771. The Parties recognise the importance of cooperation on trade-related and investment related aspects of labour, environmental and gender issues in order to achieve the objectives of this Chapter, to enhance the benefits thereof and to strengthen the Parties' joint and individual capacities to promote sustainable development. Each Party may, as appropriate, invite its social partners or other relevant stakeholders to participate in relevant cooperation projects and to identify potential areas of cooperation. 2. Pursuant to paragraph 1, the Parties may cooperate in areas of mutual interest such as:

- (a) trade and investment related aspects of environmental sustainability, including efforts to promote conservation, sustainable use and restoration of biological diversity including matters related to natural resources; combat climate change; prevent land degradation including deforestation and desertification; promote trade in environmental goods and services; and ensure access to information, participation and justice in environmental matters;
- (b) promoting decent work and the fundamental principles and rights at work; best practice for labour relations, for example improved labour relations, including promotion of best practice in alternative dispute resolution; and social dialogue, including tripartite consultation and partnership; elimination of all forms of forced or compulsory labour, including forced or compulsory child labour and trafficking in persons;
- (c) gender equality and non-discrimination, including efforts to promote equal remuneration for work of equal value and equitable gender representation at senior levels in the public and private sector; to further increased economic and labour participation of women, including in entrepreneurship and innovation; to conduct gender-based analysis, the collection of gender-disaggregated data and the analysis of genderfocused statistics related to trade; experiences and best practice relating to policies and programmes to encourage women's increased participation in international trade; advancing care policies and programmes as well as work-life balance measures; and
- (d) responsible business conduct. 3. The Parties shall strive to strengthen their cooperation on trade and investment related labour, environmental and gender issues of mutual interest in relevant bilateral, regional and multilateral fora in which they participate such as the ILO, WTO, OECD, the United Nations Environment Programme and multilateral environmental agreements.

ARTICLE 130

Cooperation framework

str. 79Taking into account their national priorities and circumstances, as well as available resources, the Parties may cooperate on issues of mutual interest through activities such as:

(a) dialogues, workshops, seminars, conferences, collaborative programmes and projects;

- (b) the exchange of information on best practice;

- (c) technical assistance to promote and facilitate cooperation and training; and
- (d) any other form of cooperation deemed appropriate. 2. The Parties shall, where appropriate and possible, seek to complement and use their existing cooperation mechanisms and take into account the relevant work of regional and international organisations.

SECTION II

ARTICLE 131

Multilateral environmental agreements and governance

str. 791. The Parties recognise the importance of multilateral environmental agreements, and of the UN Environment Assembly and UN Environment Programme as a response of the international community to global, regional and domestic environmental challenges and stress the need to enhance the mutual supportiveness between trade and environment policies. 2. The Parties reaffirm their commitment to the effective implementation in their domestic laws, regulations and policies of the multilateral environmental agreements to which they are a party, as well as their adherence to environmental principles reflected in the international instruments referred to in Article 123 (Context and objectives).

ARTICLE 132

Sustainable forest management and associated trade

str. 791. The Parties recognise the importance of ensuring conservation and sustainable management of forests and related ecosystems with the objective to reduce greenhouse gas emissions and biodiversity loss resulting from deforestation and forest degradation, including from land use and land-use change for economic activities. 2. Pursuant to paragraph 1, the Parties commit to:
2. (a) ensure forest law enforcement and governance;
3. (b) promote trade in products that derive from sustainably managed forests and related ecosystems;

- (c) implement measures to combat illegal logging and promote the use of timber legality assurance instruments with the aim that only legally sourced timber is traded between the Parties;
- (d) promote the protection of endangered timber species, inter alia , through the effective use of the Convention on International

str. 80Trade in Endangered Species of Wild Fauna and Flora (CITES);
- (e) cooperate on issues pertaining to conservation and sustainable management of forests and wetlands where relevant through existing bilateral arrangements if applicable and in the relevant multilateral fora in which they participate, in particular through the UN collaborative initiative on Reducing Emissions from Deforestation and Forest Degradation (REDD+) as encouraged by the Paris Agreement; and
- (f) exchange information and, as appropriate, cooperate with the other Party on trade-related initiatives to combat illegal logging, and to promote sustainable forest management, forest governance and conservation of forest cover.

ARTICLE 133

Sustainable agriculture, food systems and associated trade

str. 801. The Parties recognise the increasing impact that global challenges, such as climate change, loss of biodiversity, land degradation, droughts and the emergence of new pests and diseases, among others, have on agriculture and food systems. 2. In this context, the Parties recognise the importance of strengthening policies and devising programs that contribute to the development of more productive, sustainable, inclusive and resilient agriculture and food systems in a holistic and comprehensive manner. The Parties recognise the importance of sustainable agriculture and food systems and the role of trade in achieving this objective. 3. Pursuant to paragraphs 1 and 2, the Parties will exchange information and experiences in the development and implementation of integrated policies, which promote sustainable agriculture and food systems and associated trade in all three dimensions of sustainable development. In order to effectively contribute to the sustainable development of the agriculture and food sector, the Parties may cooperate on areas of mutual interest related to trade and sustainable agriculture and food systems, including through conducting a dialogue on domestic initiatives towards achieving sustainable agriculture and food systems and improving agricultural productivity, considering the protection and sustainable use of ecosystems and natural resources, as well as the social dimension of agricultural production.

ARTICLE 134

Trade and climate change

str. 811. The Parties recognise that climate change impacts are being felt and poses significant risks to communities, infrastructure, the economy, the environment and human health, and that efforts to increase resilience are required. The Parties commit to promote effective climate change mitigation and adaptation measures in order to tackle global, regional and domestic challenges and minimise harm. 2. The Parties recognise the importance of pursuing the objectives and principles of the UN Framework Convention on Climate Change (UNFCCC) and the Paris Agreement in order to address the urgent threat of climate change. Accordingly, the Parties recognise the role of trade to achieve the goals of sustainable development and to address climate change, as well as the importance of individual and collective efforts to address climate change impacts through mitigation and adaptation actions. 3. Pursuant to paragraph 1 and 2, the Parties commit to:
2. (a) effectively implement their respective obligations and commitments under the UNFCCC and the Paris Agreement;
3. (b) promote the contribution of trade to the transition to a low-carboneconomy and to climate-resilient development;
4. (c) cooperate bilaterally, regionally and in international fora as appropriate on trade-related climate change issues;
5. (d) share information and experiences on policy instruments of mutual interest to achieve multilateral, regional and local climate change objectives; and
6. (e) engage in cooperative and capacity-building activities of mutual interest related to climate change adaptation and mitigation.

ARTICLE 135

Trade and biological diversity

str. 811. The Parties recognise the importance of the protection, conservation and sustainable use of biological diversity, and the role of trade in pursuing these objectives consistent with the Convention on Biological Diversity and other biodiversity-related multilateral environmental agreements to which they are a party, including the decisions adopted thereunder. The Parties also recognise the importance of ensuring that

international trade of wild flora and fauna does not threaten their survival, as set out in CITES. 2. Pursuant to paragraph 1, the Parties commit to:
2. (a) take appropriate domestic measures to protect and conserve biological diversity when it is subject to pressures linked to trade and investment;
3. (b) promote the long-term conservation and sustainable use of species listed in CITES, including by promoting the cooperation in the relevant CITES bodies to keep the Appendices to the CITES up to date;
4. (c) implement applicable CITES resolutions that aims to protect and conserve species whose survival is threatened by international trade;
5. (d) take appropriate domestic measures to protect and conserve wild flora and fauna, that it has identified to be at risk within its territory, including measures to conserve the ecological integrity of protected natural areas;
6. (e) implement effective domestic measures to combat illegal trade in wild flora and fauna, including through cooperation activities with third countries, as appropriate;
7. (f) enhance efforts to prevent or control the introduction and spread of invasive alien species; and
8. (g) cooperate, where applicable, on issues concerning trade and the protection, conservation and sustainable use of biological diversity. 9. (h) implement applicable CITES resolutions that aims to protect and conserve species whose survival is threatened by international trade;
10. (i) take appropriate domestic measures to protect and conserve wild flora and fauna, that it has identified to be at risk within its territory, including measures to conserve the ecological integrity of protected natural areas;
11. (j) implement effective domestic measures to combat illegal trade in wild flora and fauna, including through cooperation activities with third countries, as appropriate;
12. (k) enhance efforts to prevent or control the introduction and spread of invasive alien species; and
13. (l) cooperate, where applicable, on issues concerning trade and the protection, conservation and sustainable use of biological diversity.

ARTICLE 136

Trade and sustainable management of fisheries and aquaculture

str. 831. The Parties recognise the importance of ensuring the conservation and sustainable management of living marine resources and marine ecosystems and the role of trade in pursuing these objectives. 2. Pursuant to paragraph 1, the Parties commit to:
2. (a) adopt and implement effective and transparent policies and measures to combat illegal, unreported and unregulated (IUU) fishing and aim to prevent IUU products from trade flows;
3. (b) effectively implement the obligations under international agreements 18 to which they are a party in their domestic laws, regulations and policies;
4. (c) promote the use of relevant international guidelines, such as FAO's Voluntary Guidelines for Catch Documentation Schemes, that include traceability schemes. 5. (d) cooperate bilaterally and in relevant international fora in the fight against IUU fishing in areas of mutual interest, such as by facilitating the exchange of information on IUU fishing activities and building capacity;
6. (e) the fulfilment of the objectives set out in the 2030 Agenda for Sustainable Development regarding fisheries subsidies, including by prohibiting certain forms of fisheries subsidies which contribute to overfishing and overcapacity, eliminating subsidies that contribute to IUU fishing and refraining from introducing new such subsidies; and
7. (f) promote the development of sustainable and responsible aquaculture. 18 These include the United Nations Convention on the Law of the Sea, done at Montego Bay, December 10, 1982 (UNCLOS), the United Nations Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, done at New York, December 4, 1995 (UN Fish Stocks Agreement), the 1993 FAO Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas, (Compliance Agreement) done at Rome, November 24, 1993, and the 2009 FAO Agreement on Port State Measures to prevent, deter and eliminate illegal, unreported and unregulated fishing, done at Rome, November 22, 2009.

SECTION III

ARTICLE 137

Labour rights

str. 841. The Parties commit to promote the development of international trade and investment in a way that is conducive to decent work for all. 2. The Parties recall the obligations deriving from membership of the ILO to respect, promote and realise the principles concerning the fundamental rights as reflected in the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022, namely:

- (a) freedom of association and the effective recognition of the right to collective bargaining;
- (b) the elimination of all forms of forced or compulsory labour;
- (c) the effective abolition of child labour; including a prohibition on the worst forms of child labour;
- (d) the elimination of discrimination in respect of employment and occupation; and
- (e) a safe and healthy working environment. 3. Each Party commits to adopt and maintain such rights in its domestic laws, regulations and policies. 4. The Parties recall the obligations deriving from membership of the ILO to effectively implement the ILO Conventions which they have ratified and to make continued and sustained efforts towards ratifying the fundamental ILO Conventions and related protocols, as well as the other Conventions that are classified as 'up-to-date' by the ILO. 5. The Parties recognise the importance of the strategic objectives of the ILO Decent Work Agenda, as reflected in the Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022 (ILO Declaration on Social Justice for a Fair Globalization). 6. The Parties commit to:
2.

str. 85(a) develop and enhance measures for social protection and decent working conditions for all, with respect to social security, occupational safety and health, wages and earnings, hours of work and other conditions of work;

- (b) promote social dialogue and tripartism; and
- (c) build and maintain a well-functioning labour inspection system. 7. The Parties reaffirm, as set out in the ILO Declaration on Social Justice for a Fair Globalization, that the violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage and that labour standards shall not be used for protectionist trade purposes.

ARTICLE 138

Business and human rights

str. 851. The Parties recognise that incorporating a business and human rights approach in trade aims at ensuring coherence and synergy between human rights and trade agreements. 2. The Parties recall the international policy framework regarding business and human rights and their obligations deriving from the international human rights instruments to which they are a party. 3. The Parties shall promote the implementation of the UN Guiding Principles on Business and Human Rights.

ARTICLE 139

Labour market issues

str. 851. Acknowledging the significant transformations in the world of work driven by technological innovations, demographic shifts, environmental and climate change, and globalisation, the Parties shall direct their efforts on further developing a humancentered approach to the future of work, as reflected in the ILO Centenary Declaration for the Future of Work of 2019, while recognizing the strong, complex and crucial links between social, trade, financial, economic and environmental policies . 2. The Parties may, as appropriate, exchange information, experiences and good practice on related issues of mutual interest.

SECTION IV

ARTICLE 140

General provisions

str. 861. The Parties acknowledge the importance of incorporating gender equality and non-discrimination perspectives in the promotion of inclusive economic development in order to achieve sustainable economic growth, with income opportunities and prospects for all. 2. The Parties recognise that women's participation in international trade can contribute to advancing their economic empowerment and economic independence. Furthermore, they acknowledge that women's access to and ownership of economic resources contribute to sustainable and inclusive economic growth, prosperity and competitiveness. 3. The Parties commit to:
2. (a) promote policies that aim to ensure an inclusive labour market, equal rights and opportunities for all, and address systemic barriers and discrimination of any kind; and
3. (b) work towards the elimination of gender wage gaps in their respective economies.

ARTICLE 141

International commitments

str. 86The Parties commit to effectively implement the international agreements pertaining to gender equality and non-discrimination, including women's rights, to which they are party.

SECTION V

ARTICLE 142

Sub-Committee on trade and sustainable development

str. 861. The Parties shall establish a Sub-Committee on trade and sustainable development composed of senior government representatives or their designees. Each Party shall ensure that its representatives have the appropriate expertise concerning the issues to be discussed, such as experts from institutions responsible for trade, labour, environment and gender issues. 2. The Sub-Committee on trade and sustainable development shall convene directly before or after the meetings of the Joint Committee unless the Parties decide otherwise. Meetings may be conducted in person or by any technological means available to the Parties. 3. The Sub-Committee on trade and sustainable development shall consider conducting meetings in consecutive sessions focused on thematic sections of this Chapter, as well as cross-cutting issues related to trade and sustainable development. 4. The Sub-Committee on trade and sustainable development may consider any matter arising under this Chapter. 5. The Sub-Committee on trade and sustainable development shall:

- (a) oversee the implementation of this Chapter;
- (b) oversee and assess the cooperation activities of this Chapter, including exchange of information and experience on areas of mutual interest;
- (c) serve as a forum for dialogue on matters related to this Chapter;
- (d) make recommendations and report to the Joint Committee regarding the implementation, and where applicable, the review of this Chapter; and
- (e) carry out the tasks referred to in Article 145 (Consultations) and Article 147 (Review), as well as any other functions as the Parties may agree. 6. The Sub-Committee on trade and sustainable development may consult or seek the advice of relevant stakeholders or experts over matters relating to the implementation of this Chapter. 8. The Sub-Committee on trade and sustainable development shall act by consensus and publish a report on its meetings.

ARTICLE 143

Contact points

str. 88Each Party shall designate a contact point for the purposes of facilitating communication and coordination between the Parties on any matter relating to the implementation of this Chapter, including possible cooperative activities. The Parties shall exchange the contact details of their designated contact points. 19

ARTICLE 144

Implementation and dispute resolution

str. 881. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter. Should any matter arise under this Chapter, the Parties concerned shall make every attempt to reach a mutually satisfactory resolution of the matter, inter alia through dialogue, exchange of information or, if appropriate, cooperation. 2. For any matter arising under this Chapter, the Parties shall only have recourse to the rules and procedures provided therein. The Parties concerned may nevertheless, if they so agree, have access to good offices, conciliation and mediation procedures. Such procedures may begin and be terminated at any time and shall be confidential and without prejudice to the rights of the Parties concerned in any other procedures provided for in this Chapter. 3. If the Parties concerned so agree, good offices, conciliation and mediation procedures may continue while other proceedings referred to in Articles 145 (Consultations) and 146 (Panel of experts) are in progress.

ARTICLE 145

Consultations

str. 881. A Party (the requesting Party) may request bilateral expert consultations with another Party (the responding Party) regarding any matter arising under this Chapter by delivering a written request to the responding Party's contact point referred to in Article 143 (Contact points). The request shall set out the reasons for requesting consultations, including information that is specific and sufficient, and identify the provisions of this Chapter considered to be applicable, to enable the responding Party to respond.

str. 89The requesting Party shall inform the other Parties, through the contact points referred to in

19 In the case of Chile, the contact point shall be in its Undersecretariat of International Economic Relations of the Ministry of Foreign Affairs or its successor. Article 143 (Contact points), that a request for bilateral expert consultations has been submitted. 2. Unless otherwise agreed by the requesting Party and the responding Party (Consulting Parties), bilateral expert consultations shall begin no later than 30 days from the receipt of the request for consultations. The Consulting Parties shall promptly inform the other Parties of any mutually agreed resolution of the matter. 3. If the Consulting Parties do not reach a mutually agreed solution through bilateral expert consultations in accordance with paragraph 2, within 90 days from the receipt of the request for such consultations, a Consulting Party may request in writing consultations in the Sub-Committee on trade and sustainable development. 4. The Consulting Parties shall enter into consultations in the Sub-Committee on on trade and sustainable development promptly, and no later than 30 days after the date of receipt pursuant to paragraph 3 by the responding Party of the request. For the purposes of this paragraph, the Sub-Committee on on trade and sustainable development shall be composed only by the Consulting Parties. 5. The Consulting Parties may agree to seek advice from any expert or body they deem appropriate to assist them in the consultations. 6. Consultations may be held in person or by any other means of communication agreed by the Consulting Parties. If consultations are held in person, they shall be held in the Responding Party, unless the consulting Parties agree otherwise. 7. The Consulting Parties shall promptly inform the other Parties of any mutually agreed resolution of the matter. Any solution or decision reached by the Consulting Parties shall be made publicly available, unless they agree otherwise. 9. Consultations shall be deemed to be concluded no later than 120 days after the date of receipt of the request for bilateral consultations unless the Consulting Parties agree otherwise.

ARTICLE 146

Panel of experts

str. 901. If the Consulting Parties fail to reach a mutually satisfactory resolution of a matter arising under this Chapter through consultations under Article 145 (Consultations), within the time period set out in paragraph 8 of that Article, a consulting Party may request the establishment of a panel of experts. Article 167 (Establishment of arbitration panel), 168 (Arbitration panel), 169 (Procedures of the arbitration panel) and 171 (Termination of arbitration panel proceedings) of Chapter X (Dispute Settlement) and Annex XVII (Model Rules of Procedure for the Conduct of Arbitration Panels) shall apply mutatis mutandis , except as otherwise provided for in this Article. 2. The panellists shall have relevant expertise in relation to the matter referred to in

paragraph 1. They shall be independent, serve in their individual capacities and shall not take instructions from any organisation or government with regard to issues related to the disagreement, or be affiliated with the government of a Party. 3. If the matter is related to multilateral instruments referred to in this Chapter, the panel of experts should seek information from the ILO or relevant bodies established under those instruments, including any pertinent available interpretative guidance, findings or decisions adopted by the ILO or those bodies. Any information obtained shall be submitted to the parties concerned for their comments. 4. The panel of experts shall submit an initial report containing its findings and recommendations to the parties concerned within 100 days from the date of establishment of the panel of experts. A party concerned may submit written comments to the panel of experts on its initial report within 25 days from the date of receipt of the report.

str. 91After considering any such written comments, the panel of experts may modify the initial report and make any further examination it considers appropriate. The panel of experts shall present to the parties concerned a final report within 60 days from the date of receipt of the initial report. The Parties shall publish, or otherwise make publicly available, the final report. 5. The parties concerned shall discuss appropriate measures to implement the final report of the panel of experts. Such measures shall be communicated to the other Parties, through their contact points, within 90 days from the date of issuance of the final report and shall be monitored by the Joint Committee. 6. Any time period for the purposes of this Article may be modified by mutual agreement of the parties concerned. 7. When a panel of experts considers that it cannot comply with a timeframe imposed on it for the purposes of this Article, it shall, through the contact points, inform the parties concerned in writing stating the reasons of further delay and the date on which the panel of experts plans to deliver its report and provide an estimate of the additional time required. Any additional time should not exceed 60 days. 8. The costs of the panel of experts shall be borne by the parties concerned in equal shares. Each party concerned shall bear its own legal and other costs incurred in relation to the panel of experts. The panel of experts may decide that the costs be distributed differently taking into account the particular circumstances of the case. 9. Where a procedural question arises, the panel of experts may, after consultation with the parties concerned, adopt an appropriate procedure.

Article 147

Review

str. 91The Parties shall assess in the Sub-Committee on trade and sustainable development the progress achieved in pursuing the objectives set out in this Chapter and

consider relevant international developments in order to identify areas where further actions could promote these objectives.

CHAPTER VI

COMPETITION POLICY

ARTICLE 148

Objectives

ARTICLE 149

Notifications

str. 921. Each Party, through its designated authority, shall notify the other Parties of an enforcement activity regarding anti-competitive business conduct relating to goods and services if it is liable to substantially affect another Party's important interests, or if the anti-competitive business conduct is liable to have a direct and substantial effect in the territory of that other Party or is taking place principally in the territory of that other Party. 2. Provided that this is not contrary to the Parties' competition laws and does not affect any investigation being carried out, notification shall take place at an early stage of the procedure. 20 For the purpose of this Chapter, 'goods' shall mean goods classified in chapters 1 to 97 of the HS. 3. The notifications provided for in paragraph 1 should be detailed enough to permit an evaluation in the light of the interests of the other Parties.

ARTICLE 150

Co-ordination of enforcement activities

str. 93A Party, through its designated authority, may notify another Party of its willingness to co-ordinate enforcement activities with respect to a specific case. This co-ordination shall not prevent the Parties from taking autonomous decisions.

ARTICLE 151

Consultations

str. 931. Each Party shall, in accordance with its laws, take into consideration the important interests of the other Parties in the course of its enforcement activities on anticompetitive business conduct relating to goods and services. If a Party considers that an investigation or proceeding being conducted by another Party may adversely affect such Party's important interests it may transmit its views on the matter to that other Party through its designated authority. Without prejudice to the continuation of any action under its competition laws and to its full freedom of ultimate decision, the Party so addressed should give full and sympathetic consideration to the views expressed by the requesting Party. 2. If a Party considers that an anti-competitive business conduct carried out within the territory of another Party may have an adverse effect on its interests, the first Party may , through its designated authority, request that that other Party initiates appropriate enforcement activities. The request shall be as specific as possible about the nature of the anti-competitive business conduct and its effect on the interest of the requesting Party , and shall include an offer of such further information and other assistance as the requesting Party is able to provide. The requested Party shall carefully consider whether to initiate enforcement activities, or to expand ongoing enforcement activities, with respect to the anti-competitive business conduct identified in the request. 3. Regarding the issues addressed in paragraphs 1 and 2 each Party undertakes to exchange information regarding sanctions and remedies applied and to provide the grounds on which those actions were taken, when requested by another Party. 4. A Party may request consultations within the Joint Committee regarding the issues addressed in paragraphs 1 and 2 as well as any other matter covered by this Chapter. Such a request shall indicate the reasons for the request and whether any procedural time limit or other constraints require that consultations be expedited.

ARTICLE 152

Exchange of information and confidentiality

str. 941. With a view to facilitating the effective application of their competition laws in order to eliminate the negative effects of anti-competitive business conduct relating to goods and services, the Parties are encouraged to exchange information. 2. All exchange of information shall be subject to the rules and standards of confidentiality applicable in the territory of each Party. No Party shall be required to provide information when this is contrary to its laws regarding disclosure of information. Each Party shall maintain the confidentiality of any information provided to it according to the limitations that the submitting Party requests for the use of such information. Where the laws of a Party so provide, confidential information may be provided to their respective courts of justice.

ARTICLE 153

Public enterprises and enterprises entrusted with special or exclusive rights, including designated monopolies

str. 941. With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Parties shall ensure that no measure is adopted or maintained that distorts trade in goods or services between the Parties to an extent contrary to the Parties' interests and that such enterprises shall be subject to the rules of competition insofar as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. 2. The Parties confirm their rights and obligations under Article XVII of the GATT 1994 and Article VIII of the GATS with regard to enterprises referred to in paragraph 1.

ARTICLE 154

Dispute settlement

str. 94No Party may have recourse to dispute settlement under this Agreement for any matter arising under this Chapter.

ARTICLE 155

Designated authorities

str. 95For the purpose of applying Articles 149, 150 and 151, each Party shall designate its competition authority or any other public entity and communicate its decision to the other Parties at the first meeting of the Joint Committee but in no case later than 60 days after the entry into force of the Agreement.

ARTICLE 156

Definitions

CHAPTER VII

SUBSIDIES

ARTICLE 157

Subsidies/State aid

str. 961. The rights and obligations of the Parties in respect of subsidies related to goods shall be governed by Article XVI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures. 2. The rights and obligations of the Parties in respect of subsidies related to services shall be governed by the GATS. 3. Each Party may request information on individual cases of state aid believed to affect trade between the Parties. The requested Party will make its best efforts to provide such information.

CHAPTER VIII

TRANSPARENCY

ARTICLE 158

Publication

str. 971. The Parties shall publish, or otherwise make publicly available, their laws, regulations, procedures and administrative rulings of general application as well as the international agreements, that may affect the operation of this Agreement. 2. The Parties shall provide, upon request, information on matters referred to in paragraph 1.

ARTICLE 159

Contact points and exchange of information

str. 971. In order to facilitate communication between the Parties on any trade matter covered by this Agreement, each Party shall designate a contact point. On the request of any Party, the contact point of the other Parties shall indicate the office or official responsible for the matter and provide the required support to facilitate communication with the requesting Party. 2. On the request of a Party, each Party shall provide information and reply to any question from the other Parties relating to an actual measure that may affect the operation of this Agreement. The Parties shall make information on proposed measures available to the extent possible under their domestic laws and regulations. 3. The information referred to under this Article shall be considered to have been provided when the information has been made available by appropriate notification to the WTO or when the information has been made available on the official, publicly and fee-free accessible website of the Party concerned.

ARTICLE 160

Cooperation on increased transparency

str. 97The Parties agree to cooperate in bilateral and multilateral fora on ways to increase transparency in trade matters.

CHAPTER IX

ADMINISTRATION OF THE AGREEMENT

ARTICLE 161

The Joint Committee

str. 981. The Parties hereby establish the EFTA-Chile Joint Committee, comprising Ministers of each Party, or senior officials delegated by them for this purpose. 2. The Joint Committee shall:

- (a) supervise the implementation of this Agreement and evaluate the results obtained in its application;
- (b) oversee the further elaboration of this Agreement;
- (c) endeavour to resolve disputes that may arise regarding the interpretation or application of this Agreement;
- (d) supervise the work of the sub-committees and working groups established or created under this Agreement; and
- (e) carry out any other function assigned to it under this Agreement. 3. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks. The Joint Committee may seek the advice of non-governmental persons and groups. 4. The Joint Committee shall establish its rules of procedure.

str. 99It may take decisions as provided for in this Agreement. On other matters the Joint Committee may make recommendations. The Joint Committee shall take decisions and make recommendations by consensus. 5. Subject to the provisions set out in Annex XV, the Joint Committee may amend the Annexes and the Appendices to this Agreement. 6. The Joint Committee shall meet whenever necessary but normally every two years. The regular meetings of the Joint Committee shall alternate between Chile and an EFTA State. 7. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise.

ARTICLE 162

The Secretariat

str. 991. The Parties hereby establish a Secretariat of this Agreement, comprising the competent organs referred to in Annex XVI. 2. All communications to or by a Party shall be sent through the respective competent organs unless otherwise provided for in this Agreement.

CHAPTER X

DISPUTE SETTLEMENT

ARTICLE 163

Scope

str. 1001. This Chapter shall apply with respect to the avoidance or the settlement of all disputes arising from this Agreement between one or several EFTA States and Chile. 2. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through co-operation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation. 3. This Chapter shall not apply to Articles 12, 14(1), 15(1), 17(3), 18(1), 28(1) and 157(1) and (2).

ARTICLE 164

Choice of forum

str. 1001. Disputes on the same matter arising under both this Agreement and the WTO Agreement, or any agreement negotiated thereunder, to which the Parties are party, may be settled in either forum at the discretion of the complaining Party. The forum thus selected shall be used to the exclusion of the other. 2. Once dispute settlement procedures have been initiated under this Agreement pursuant to Article 167 or dispute settlement proceedings have been initiated under the WTO Agreement, the forum selected shall be used to the exclusion of the other. 3. For the purposes of this Article, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel pursuant to Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes. 4. Before a Party initiates dispute settlement proceedings under the WTO Agreement against another Party or Parties, that Party shall notify all other Parties of its intention.

ARTICLE 165

Good offices, conciliation or mediation

str. 1001. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the Parties involved so agree. They may begin at any time and be terminated at any time. 2.

str. 101Proceedings involving good offices, conciliation and mediation shall be confidential and without prejudice to the rights of the Parties in any other proceedings.

ARTICLE 166

Consultations

str. 1011. A Party may request in writing consultations with another Party whenever it considers that a measure applied by that Party is inconsistent with this Agreement or that any benefit accruing to it directly or indirectly under this Agreement is impaired by such measure. The Party requesting consultations shall at the same time notify the other Parties in writing thereof. Consultations shall take place before the Joint Committee unless the Party or Parties making or receiving the request for consultations disagree. 2. Consultations shall be held within 30 days from the date of receipt of the request for consultations. Consultations on urgent matters, including those on perishable agricultural goods, shall commence within 15 days from the receipt of the request for consultations. 3. The Parties involved in the consultations shall provide sufficient information to enable a full examination of how the measure is inconsistent with, or may impair the benefit accruing to them under this Agreement and treat any confidential or proprietary information exchanged in the course of consultations in the same manner as the Party providing the information. 4. The consultations shall be confidential and without prejudice to the rights of the Parties involved in any further proceedings. 5. The Parties involved in the consultations shall inform the other Parties of any mutually agreed resolution of the matter.

ARTICLE 167

Establishment of arbitration panel

str. 1011. If the matter has not been resolved within 60 days, or 30 days in relation to a matter of urgency, after the date of receipt of the request for consultations, it may be referred to arbitration by one or more of the Parties involved by means of a written

notification addressed to the Party or Parties complained against.

str. 102A copy of this notification shall also be communicated to all Parties so that each Party may determine whether to participate in the dispute. 2. Where more than one Party requests the establishment of an arbitration panel relating to the same matter, a single arbitration panel should be established to examine these complaints whenever feasible. 3. A request for arbitration shall give the reason for the complaint including the identification of the measure at issue and an indication of the legal basis of the complaint. 4. A Party to this Agreement which is not a Party to the dispute, on delivery of a written notice to the disputing Parties, shall be entitled to make written submissions to the arbitration panel, receive written submissions of the disputing Parties, attend all hearings and make oral submissions.

ARTICLE 168

Arbitration panel

str. 1021. The arbitration panel shall comprise three members. 2. In the written notification pursuant to Article 167, the Party or the Parties referring the dispute to arbitration shall designate one member of the arbitration panel. 3. Within 15 days of the receipt of the notification referred to in paragraph 2, the Party or Parties to which it was addressed to shall designate one member of the arbitration panel. 4. The Parties to the dispute shall agree on the appointment of the third arbitrator within 15 days of the appointment of the second arbitrator. The member thus appointed shall chair the arbitration panel. 5. If all 3 members have not been designated or appointed within 30 days from the date of receipt of the notification referred to in paragraph 2, the necessary designations shall be made at the request of any Party to the dispute by the Director-General of the WTO within a further 30 days. 6. The Chair of the arbitration panel shall not be a national of any of the Parties, nor have his or her usual place of residence in the territory of any of the Parties, nor be employed or previously have been employed by any of the Parties, nor have dealt with the case in any capacity. 7.

str. 103If an arbitrator dies, withdraws or is removed, a replacement shall be selected within 15 days in accordance with the selection procedure followed to select him or her. In such a case, any time period applicable to the arbitration panel proceedings shall be

suspended for a period beginning on the date the arbitrator dies, withdraws or is removed and ending on the date the replacement is selected. 8. The date of establishment of the arbitration panel shall be the date on which the Chair is appointed.

ARTICLE 169

Procedures of the arbitration panel

str. 1031. Unless the Parties to the dispute agree otherwise, the arbitration panel proceedings shall be conducted in accordance with the Model Rules of Procedure set out at Annex XVII. 2. Unless the Parties to the dispute otherwise agree within 10 days from the date of delivery of the request for the establishment of the arbitration panel, the terms of reference shall be:

'To examine, in the light of the relevant provisions of the Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 167 and to make findings of law and fact together with the reasons therefore for the resolution of the dispute.' 3. At the request of a Party to the dispute or on its own initiative, the arbitration panel may seek scientific information and technical advice from experts as it deems appropriate. Any information so obtained shall be submitted to the Parties for comments. 4. The arbitration panel shall make its ruling based on the provisions of this Agreement, in particular in the light of its objectives as set out in Article 2, applied and interpreted in accordance with the rules of interpretation of public international law. 5. Decisions of the arbitration panel shall be taken by a majority of its members. Arbitrators may furnish separate opinions on matters not unanimously agreed. No arbitration panel may disclose which arbitrators are associated with majority or minority opinions. 6. The expenses of the arbitration panel, including the remuneration of its members, shall be borne by the Parties to the dispute in equal shares.

ARTICLE 170

Ruling

str. 1041. The arbitration panel shall within 90 days from the date of the establishment of the arbitration panel present to the Parties to the dispute its ruling. 2. The arbitration panel shall base its ruling on the submissions and arguments of the Parties to the dispute and on any scientific information and technical advice pursuant to Article 169(3). 3. Unless the Parties to the dispute decide otherwise, the ruling shall be published 15 days after it is presented to them.

ARTICLE 171

Termination of arbitration panel proceedings

ARTICLE 172

Implementation of arbitration panel rulings

str. 1041. The ruling shall be final and binding on the Parties to the dispute. Each Party to the dispute shall be bound to take the measures necessary to comply with the ruling referred to in Article 170. 2. The Parties to the dispute shall endeavour to agree on the specific measures that are required for complying with the ruling. 3. The Party complained against shall notify the other Party within 30 days after the ruling has been transmitted to the Parties to the dispute:

- (a) the specific measures required for complying with the ruling;
- (b) the reasonable period of time to do so; and
- (c) a concrete proposal of a temporary compensation until the full implementation of the specific measures required for compliance with the ruling. 4.

str. 105In case of disagreement between the Parties to the dispute on the content of such notification, the complaining Party may request the original arbitration panel to rule on whether the proposed measures referred to under paragraph 3(a) are in compliance with the ruling, on the duration of the period of time and on whether the compensation proposal is manifestly disproportionate. The ruling shall be given within 45 days after that request. 5. The Party or Parties concerned shall notify to the other Party or Parties to the dispute and the Joint Committee the measures adopted in order to implement the ruling

before the expiry of the reasonable period of time determined in accordance with paragraph 4. Upon that notification, any Party to the dispute may request the original arbitration panel to rule on the conformity of those measures with the ruling. The ruling of the arbitration panel shall be given within 45 days from that request. 6. If the Party or Parties concerned fails to notify the implementing measures before the expiry of the reasonable period of time determined in accordance with paragraph 4, or if the arbitration panel rules that the implementing measures notified by the Party or Parties concerned are not in compliance with the ruling, such Party or Parties shall, if so requested by the complaining Party or Parties, enter into consultations with a view to agree on a mutually acceptable compensation. If no such agreement has been reached within 20 days from the request, the complaining Party or Parties shall be entitled to suspend only the application of benefits granted under this Agreement equivalent to those affected by the measure found to be inconsistent with, or to impair benefits under, this Agreement. 7. In considering what benefits to suspend, the complaining Party or Parties should first seek to suspend benefits in the same sector 21 or sectors as that affected by the measure that the arbitration panel has found to be inconsistent with, or to impair benefits under, this Agreement. The complaining Party or Parties that consider it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors. 8.

str. 106The complaining Party or Parties shall notify the other Party or Parties of the benefits which it intends to suspend no later than 60 days before the date on which the suspension is due to take effect. Within 15 days from that notification, any of the Parties to the dispute may request the original arbitration panel to rule on whether the benefits which the complaining Party or Parties intend to suspend are equivalent to those affected by the measure found to be inconsistent with, or to impair benefits under, this Agreement, and whether the proposed suspension is in accordance with paragraphs 6 and 7. The ruling of the arbitration panel shall be given within 45 days from that request. Benefits shall not be suspended until the arbitration panel has issued its ruling. 9. The suspension of benefits shall be temporary and shall only be applied by the complaining Party or Parties until the measure found to be inconsistent with, or to impair benefits under, this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or the Parties to the dispute have reached agreement on a resolution of the dispute. 10. At the request of any of the Parties to the dispute, the original arbitration panel shall decide on the conformity with the ruling of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel shall be given within 30 days from the date of that request. 21 For the purpose of this Article, with respect to goods 'sector' shall mean goods classified in Chapters 1 to 97 of the HS. 11. The rulings provided for in this Article shall be binding.

ARTICLE 173

Other provisions

str. 1061. Any time period mentioned in this Chapter may be extended by mutual agreement of the Parties involved. 2. Hearings of the arbitration panels shall be closed to the public, unless the Parties decide otherwise.

CHAPTER XI

GENERAL EXCEPTIONS

ARTICLE 174

Balance of payments difficulties

str. 1071. Where a Party is in serious balance of payments and external financial difficulties, or under threat thereof, it may adopt or maintain restrictive measures with regard to trade in goods and in services and with regard to payments and capital movements, including those related to direct investment. 2. The Parties shall endeavour to avoid the application of the restrictive measures referred to in paragraph 1. 3. Any restrictive measure adopted or maintained under this Article shall be nondiscriminatory and of limited duration and shall not go beyond what is necessary to remedy the balance of payments and external financial situation. Such a measure shall be in accordance with the conditions established in the WTO Agreements and consistent with the Articles of Agreement of the International Monetary Fund, as applicable. 4. The Party maintaining or having adopted restrictive measures, or any changes thereto, shall promptly notify them to the other Parties and present, as soon as possible, a time schedule for their removal. 5. The Party applying restrictive measures shall consult promptly within the Joint Committee. Such consultations shall assess the balance of payments situation of the Party concerned and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors as:

- (a) the nature and extent of the balance of payments and the external financial difficulties;
- (b) the external economic and trading environment of the consulting Party;
- (c) alternative corrective measures which may be available. The consultations shall address the compliance of any restrictive measures with paragraphs 3 and 4. All findings of statistical and other facts presented by the International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments shall be accepted and conclusions shall be based on the assessment by the International Monetary Fund of the balance of payments and the external financial situation of the consulting Party.

ARTICLE 175

National security clause

str. 1071. Nothing in this Agreement shall be construed:
2. (a) to require a Party to furnish any information the disclosure of which it considers contrary to its essential security interests;
3. (b) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests
4. (i) relating to fissionable and fusionable materials or the materials from which they are derived;
5. (ii) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials or relating to the supply of services, as carried on directly or indirectly for the purpose of supplying or provisioning a military establishment;
6. (iii) relating to the government procurement of arms, ammunition or war materials or procurement indispensable for national security or for national defense purposes; or
7. (iv) taken in time of war or other emergency in international relations; or
8. (c) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security. 2. The Joint Committee shall be informed to the fullest extent possible of measures taken under paragraphs 1(b) and (c) and of their termination.

ARTICLE 176

Taxation

str. 1071. Nothing in this Agreement shall apply to taxation measures except:
2. (a) Article 13, and such other provisions of this Agreement as are necessary to give effect to that Article to the same extent as does Article III of the GATT 1994; and
3. (b) with regard to taxation measures applicable in Sections I and II of Chapter III and Chapter V ter (Digital Trade), where Article XIV of the GATS applies, mutatis mutandis . 2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency.

CHAPTER XII

FINAL PROVISIONS

ARTICLE 177

Definitions

ARTICLE 178

Annexes and Appendices

ARTICLE 179

Amendments

str. 1071. Any Party may submit proposals for amendments to this Agreement to the Joint Committee for consideration and recommendation. 2. Amendments to this Agreement shall be subject to ratification, acceptance or approval. 3. Unless otherwise agreed, amendments shall enter into force on the first day of the third month following the date on which at least one EFTA State and Chile have deposited their instrument of ratification, acceptance or approval with the Depositary. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after the date on which at least one EFTA State and Chile have deposited their instrument of ratification, acceptance or approval with the Depositary, the amendment shall enter into force on the first day of the third month following the deposit of its instrument. 4. Notwithstanding paragraphs 1 to 3, the Joint Committee may decide to amend any Annexes or Appendices to this Agreement. If a Party has accepted a decision subject to the fulfilment of domestic legal requirements, the decision shall enter into force on the first day of the third month following the date on which the last Party notifies the Depositary that its internal requirements have been fulfilled, unless otherwise specified in the decision. 5. Amendments regarding issues related only to one or several EFTA States and Chile shall be agreed upon by the Parties concerned. 6. The text of the amendments and the instruments of ratification, acceptance or approval shall be deposited with the Depositary. 7. A Party may apply an amendment provisionally, subject to its domestic legal requirements. Provisional application of amendments shall be notified to the Depositary.

ARTICLE 180

Additional Parties

str. 107Any third State may, upon invitation by the Joint Committee, become a Party to this Agreement. The terms and conditions of the accession of the additional Party shall be the subject of an agreement between the Parties and the invited State.

ARTICLE 181

Withdrawal and termination

str. 1071. Any Party to this Agreement may withdraw therefrom by means of a written notification to the Depositary. The withdrawal shall take effect on the first day of the sixth month after the date on which the notification was received by the Depositary. 2. If one of the EFTA States withdraws from this Agreement, a meeting of the remaining Parties shall be convened to discuss the issue of the continued existence of this Agreement.

ARTICLE 182

Entry into force

str. 1071. This Agreement is subject to ratification, acceptance or approval. The instruments of ratification, acceptance or approval shall be deposited with the Depositary. 2. This Agreement shall enter into force on 1 February 2004 in relation to those Signatory States which by then have ratified the Agreement, provided they have

deposited their instruments of ratification, acceptance or approval with the Depositary at least 30 days before the date of entry into force, and provided that Chile is among the States that have deposited their instruments of ratification, acceptance or approval. 3. In case this Agreement does not enter into force on 1 February 2004, it shall enter into force on the first day of the third month following the latter deposit of the instruments of ratification, acceptance or approval by Chile and at least one EFTA State. 4. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after this Agreement has entered into force, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument. 5. If its constitutional requirements permit, any EFTA State may apply this Agreement provisionally. Provisional application of this Agreement under this paragraph shall be notified to the Depositary.

ARTICLE 183

Depositary

str. 107The Government of Norway shall act as Depositary. IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement. Done at Kristiansand, this 26 th day of June 2003, in a single authentic copy in the English language which shall be deposited with the Government of Norway. The Government of Norway shall transmit certified copies to all Signatory States to this Agreement. For the Republic of Iceland

For the Republic of Chile

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For the Principality of Liechtenstein

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For the Kingdom of Norway

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For the Swiss Confederation

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