Comparative Guide Chile - U.S. FTA and DR - CAFTA - Chapter 1: Initial Provisions

A Comparative Guide to the Chile-United States Free Trade Agreement and the
Dominican Republic-Central America-United States Free Trade Agreement


Chapter One: Initial Provisions


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Aside from one additional paragraph within DR-CAFTA with regard to regional integration (second paragraph of Art.1.3), both the Chile-U.S. FTA and DR-CAFTA (Article one in both) mirror each other in that they declare that the respective FTA is consistent with Article XXIV of GATT (1994) and Article V of the GATS (Art.1.1). The Initial Provisions Chapter goes on to describe the objectives (Art.1.2), relation to other Agreements (Art.1.3) and the extent of obligations that encompass the Agreements (Art.1.4).

Including national treatment, most-favored-nation treatment, and transparency, the Agreements also enumerate seven basic objectives (Art.1.2) that include: the expansion and diversification of trade, elimination of barriers to and facilitation of trade in goods and services, promotion of fair competition, increased investment opportunities, protection of intellectual property rights, establishment and effective use of dispute resolution mechanisms and work towards further bilateral, regional, and multilateral cooperation in the betterment of their respective Agreements.

The Parties in both Agreements affirm their existing obligations under the WTO Agreement and other multilateral accords (Art.1.3). The Parties also undertake to do all that is necessary to ensure that state governments, unless otherwise enumerated, give effect to the Agreements (Art.1.4).

As noted before, DR-CAFTA includes a paragraph providing “greater certainty,” in affirming that nothing in DR-CAFTA shall prevent the Central American Parties from further developing regional integration provided that such instruments and measures are not inconsistent with the Agreement (Art.1.3.2)

Preamble Chapter 2

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