Free Trade Agreement between the Republic of Chile and the Republic of Turkey
The Republic of Chile and the Republic of Turkey (hereinafter referred to as
“the Parties” or “Chile” or
DESIROUS to develop and strengthen
friendly relations, especially in the fields of economic co-operation and
trade, with an aim to contribute to the progress of economic co-operation and
to promote mutually beneficial bilateral trade;
HAVING regard to the experience
gained from the co-operation developed between the Parties as well as between
them and their main trading partners;
RESOLVED to lay down for this
purpose provisions aimed at the progressive abolition of the obstacles to trade
between the Parties in accordance with the provisions of these instruments, in
particular those concerning the establishment of free trade areas;
DECLARING their readiness to
undertake activities with a view to promoting harmonious development of their
trade as well as to expanding and diversifying their mutual co-operation in the
fields of joint interest, thus creating a framework and supportive environment
based on equality, non discrimination, and a balance of rights and obligations;
RESOLVED to contribute to the
strengthening and reinforcement of the multilateral trading system as established through the World Trade Organization (WTO);
DESIROUS to develop their relations
in the field of sustainable development and environmental protection and
conservation, and to improve working conditions and living standards in their
respective countries and protect, enhance and enforce the fundamental worker’s
HAVE AGREED as follows:
of a Free Trade Area
The Parties to this Agreement,
consistent with Article XXIV of the General Agreement
on Tariffs and Trade 1994 (hereinafter referred to as “GATT 1994”), hereby establish a free trade area.
The objectives of this
a) to increase and enhance the economic cooperation between the Parties and raise the living standards of the people of the two countries;
b) to promote the expansion of trade through the harmonious development of the economic relations between the Parties;
c) to gradually eliminate difficulties and restrictions on trade in goods;
d) to contribute by the removal of barriers to trade, to the harmonious development and expansion of world trade; and e) to provide fair conditions of competition in trade between the Parties.
Other International Agreements
The Parties confirm their
rights and obligations under the Marrakesh Agreement
establishing the World Trade Organization (hereinafter referred to as “the WTO
Agreement”) and the other agreements negotiated there under
to which they are a party, and under any other international agreement to which
they are a party.
and Free Trade Areas
1. Nothing in this
Agreement shall preclude the maintenance or establishment of customs unions,
free trade areas or other arrangements between either of the Parties and third
countries, insofar as they do not alter the rights and obligations provided for
in this Agreement.
2. At the request of a
Party, consultations between them shall take place within the Joint Committee
concerning agreements establishing or adjusting customs unions or free trade
areas and, where required, on other major issues related to the Parties’
respective trade policies with third countries.
For the purposes of this
Agreement, unless otherwise specified:
a) “days” means calendar days, including weekends and holidays;
b) “measure” means any measure by a Party, whether in the form of a law, regulation, rule, procedure, practice, decision, administrative action or any other form;
c) “publish” includes publication in written form or on the internet.
MARKET ACCESS FOR GOODS
Each Party shall accord
National Treatment to the goods of the other Party in
accordance with Article III of the
GATT 1994, including its interpretative notes; and to this end Article III of
GATT 1994, and its interpretative notes are incorporated into and made part of
this Agreement, mutatis mutandis.
and Valuation of Goods
1. The classification of
goods in trade between the Parties shall be that set out in each Party’s respective tariff nomenclature in
conformity with the Harmonized Commodity Description and Coding System
(hereinafter referred to as "the Harmonized System" or
2. For the purposes of
determining the customs value of goods traded between the Parties, provisions
of Part I of the Agreement on Implementation of Article VII of the GATT 1994,
as may be amended, shall apply mutatis mutandis.
A customs duty includes any
duty or charge of any kind imposed in connection with the importation or
exportation of a good, including any form of surtax or surcharge in connection
with such importation or exportation, but does not include any:
a) internal taxes or other internal charges imposed consistently with Article 59;
b) antidumping or countervailing duties applied consistently with Article34; and
c) fees or other charges imposed consistently with Article 14.
1. For each product, the
basic duty to which successive reductions set out in this Agreement are to be
applied shall be the Most Favored Nation (MFN) duty that was in force in the
Parties on the date of entry into force of this Agreement.
2. If after the entry into
force of this Agreement, any tariff reduction is applied on an erga omnes basis,
in particular, reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the basic duties
referred to in paragraph 1 as from that date when such reductions are applied.
3. The Parties shall
communicate to each other their respective basic duties.
Rules of Origin
and Cooperation between the Customs Administrations
1. Annex V to this
Agreement lays down the rules of origin and related methods of administrative
2. For the purposes of the
effective implementation and operation of Annex V, the Parties hereby establish
a Sub-Committee on Customs and Rules of Origin. The functions of the
Sub-Committee on Customs and Rules of Origin shall be:
a) reviewing the implementation and operation of Annex V;
b) reporting its findings to the Joint Committee;
c) identifying areas, relating to Annex V to be improved for facilitating trade in goods between the Parties; and
d) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 54.
3. The Sub-Committee on Customs
and Rules of Origin shall meet as may be agreed by the Parties.
4. The Sub-Committee on
Customs and Rules of Origin shall be composed by representatives from the
competent authorities of the Parties. Other Governmental Authorities may be
invited to the Sub-Committee on Customs and Rules of Origin meetings whenever
it is deemed necessary.
5. The terms of reference
of the Sub-Committee on Customs and Rules of Origin shall be determined in the
first meeting of the Joint Committee.
of a Fiscal Nature
The provisions concerning
the abolition of customs duties on imports shall also apply to customs duties
of a fiscal nature.
on Exports and Charges Having Equivalent Effect
1. Customs duties and
charges having equivalent effect on exports shall be abolished between the
Parties upon the entry into force of this Agreement.
2. From the date of entry
into force of this Agreement, no new customs duties on exports or charges
having equivalent effect shall be introduced in trade between the Parties.
Except as otherwise
provided in this Agreement, neither Party may adopt or maintain any prohibition
or restriction on the importation of any good of the other Party or on the
exportation or sale for export of any good destined for the territory of the
other Party, except in accordance with Article XI of the GATT 1994 and its
interpretative notes; and to this end, Article XI of the GATT 1994 and its interpretative
notes are incorporated into and made a part of this Agreement, mutatis
Fees and Other
Each Party shall ensure, in
accordance with Article VIII of the GATT 1994 and its interpretative notes,
that all fees and charges of whatever character (other than customs duties,
charges equivalent to an internal tax or other internal charges, applied
consistently with Article III paragraph 2 of the GATT 1994, and antidumping and
countervailing duties) imposed on or in connection with importation or
exportation are limited in amount to the approximate cost of services rendered
and do not represent an indirect protection to domestic goods or a taxation of
imports or exports for fiscal purposes.
1. Where compliance with
the provisions of Article 13 leads to:
2. In the selection of
measures, priority must be given to those which least disturb the functioning
of the arrangements in this Agreement. Such measures shall not be applied in a
manner which would constitute a means of arbitrary or unjustifiable
discrimination where the same conditions prevail, or a disguised restriction on
trade, and shall be eliminated when the conditions no longer justify their
maintenance. In addition, the measures which may be adopted pursuant to paragraph
1(c) shall not operate to increase the exports of or the protection afforded to
the domestic processing industry concerned, and shall not depart from the
provisions of this Agreement relating to non-discrimination.
re-export towards a third country against which the
exporting Party to this Agreement maintains for the product concerned
quantitative export restrictions, export duties or measures or charges having
a serious shortage, or threat thereof, of a product
essential to the exporting Party;
a shortage of essential quantities of domestic materials for a domestic processing
industry during periods when the domestic price of such materials is held below
the world price as part of a governmental stabilization plan;
and where the
situations referred to above give rise or are likely to give rise to major
difficulties for the exporting Party, that Party may take appropriate measures
under the conditions and in accordance with the
procedures laid down in this Article.
3. Before taking the
measures provided for in paragraph 1, or as soon as possible in cases to which
paragraph 4 applies, the Party intending to take the measures shall supply the
Joint Committee with all relevant information, with a view to seeking a
solution acceptable to the Parties. The Parties within the Joint Committee may
agree on any means needed to put an end to the difficulties. If no agreement is
reached within 30 days of the matter being referred to the Joint Committee, the
exporting Party may apply measures under this Article on the exportation of the
4. Where exceptional and
critical circumstances requiring immediate action make prior information or examination
impossible, the Party intending to take the measures may apply forthwith the
precautionary measures necessary to deal with the situation and shall inform
the other Party immediately thereof.
5. Any measures applied
pursuant to this Article shall be immediately notified to the Joint Committee
and shall be the subject of periodic consultations within that body,
particularly with a view to establishing a timetable for their elimination as
soon as circumstances permit.
ELIMINATION OF CUSTOMS DUTIES
The provisions of this
Section shall apply to products originating in the Parties falling within
Chapters 25 to 97 of the Harmonized System; with the exception of the products
listed in Annex I of this Agreement.
Customs Duties on Imports and Charges Having Equivalent
1. Customs duties on
imports into Turkey of goods
shall be abolished upon the entry into force of this
2. Customs duties on
imports into Chile of goods
originating in Turkey,
other than those listed in Annex II and Annex III shall be abolished upon the
entry into force of this Agreement.
3. Customs duties on
imports into Chile of goods originating in Turkey, which are listed in Annex II
shall be progressively abolished in accordance with the timetable laid down
4. Customs duties on
imports of products which are listed in Annex III shall not be subject to the
concessions referred to in this Article.
5. From the date of entry
into force of this Agreement no new customs duties on imports or charges having
equivalent effect shall be introduced in trade between the Parties.
6. Turkey and Chile shall abolish in trade
between themselves any charges having an equivalent effect to customs duties on
imports upon the entry into force of this Agreement.
AGRICULTURAL, PROCESSED AGRICULTURAL
AND FISHERY PRODUCTS
1. The provisions of this
Section shall apply to basic agricultural, processed agricultural and fishery
products (hereinafter referred to as “agricultural products”) originating in
the territory of each Party.
2. The term
"agricultural products" means, for the purposes of this Agreement, the
products falling within Chapters 01 to 24 of the Harmonized System and including
the products listed in Annex I of this Agreement.
1. The Parties to this
Agreement shall mutually allocate concessions set forth in Annex IV in
accordance with the provisions of this Section.
2. Taking into account the
role of agriculture in their respective economies, the development of trade in
agricultural products and the rules of their respective agricultural policies,
the Parties shall examine in the Joint Committee the possibilities of granting
further concessions to each other in trade in agricultural products. If a
decision to improve the conditions of access is agreed, the Parties will
evaluate the increase of the current quotas and the reduction or elimination of
Chile may maintain its
price band system as established under its Law No.18.525 or succeeding system
for the products covered by that law, provided it is applied consistent with
Chile’s rights and obligations under the WTO Agreement and in a manner that
does not afford more favorable treatment to imports of any third country,
including countries with which Chile has concluded or will conclude in the
future an agreement notified under Article XXIV of the GATT 1994.
OTHER TRADE RELATED PROVISIONS
SANITARY AND PHYTOSANITARY MEASURES
1. The Parties affirm their
rights and obligations with respect to each other under the WTO Agreement on
the Application of Sanitary and Phytosanitary Measures
(hereinafter referred to as “the SPS Agreement”).
2. The Parties shall not
apply their regulations in sanitary and phytosanitary
matters as an arbitrary or unjustifiable discrimination or a disguised
restriction on trade between them.
The objectives of this
a) to facilitate bilateral trade in food, plants and animals and products thereof, while protecting human, animal or plant life or health in the territory of each Party;
b) to deepen mutual understanding of each Party’s regulations and procedures relating to consultations on and implementation of sanitary and phytosanitary measures;
c) to strengthen cooperation between the Parties’ competent authorities that have the responsibility for sanitary and phytosanitary matters; and
d) to provide a means to improve communication, cooperation and resolution of sanitary and phytosanitary issues.
on Sanitary and Phytosanitary Matters
1. The Parties hereby agree
to establish a Sub-Committee on Sanitary and Phytosanitary
Matters (hereinafter referred to as “the Sub-Committee on SPS Matters”)
comprising representatives of each Party who have responsibility for sanitary
and phytosanitary matters. The Sub-Committee
on SPS Matters shall report to the Joint Committee of its activities.
2. The Sub-Committee on SPS
Matters shall provide a forum for:
consulting on matters related to the development or
application of sanitary and phytosanitary measures
that affect, or may affect, trade between the Parties;
consulting on issues, positions, and agendas for
meetings of the Committee on Sanitary and Phytosanitary
Measures and the other relevant international organizations referred to in the
coordinating technical cooperation programs on sanitary
and phytosanitary matters;
improving bilateral understanding related to specific
implementation issues concerning the SPS Agreement;
reviewing progress on addressing sanitary and phytosanitary matters that may arise between the Parties’
competent authorities with responsibility for such matters; and
discussing matters with a view to reach a consensus
related to consultation process referred to in sub-paragraph (a).
3. The Sub-Committee on SPS
Matters shall perform its work in accordance with the terms of reference that
will be established during the first meeting of the Joint Committee.
4. The Sub-Committee on SPS
Matters shall meet on the request of either Party to consider any matter
arising under this Chapter.
5. The Parties agree to
establish contact points for the better implementation of this Chapter.
TECHNICAL REGULATIONS, STANDARDS AND CONFORMITY
The objectives of this
Chapter are to increase and facilitate trade by preventing and eliminating
unnecessary obstacles to trade and enhancing bilateral cooperation in
accordance with the rights and obligations of the Parties with respect to the
WTO Agreement on Technical Barriers to Trade (hereinafter referred to as “the
1. Except as provided in
paragraph 2, this Chapter applies to all standards, technical regulations and conformity assessment
procedures, as defined in the TBT Agreement that may,
directly or indirectly, affect trade in goods between the Parties.
2. Sanitary and phytosanitary measures and technical specifications
prepared by governmental bodies for public procurement purposes are not subject
to the provisions of this Chapter.
For the purpose of this Chapter,
the definitions of Annex 1 of the TBT Agreement shall apply. In this respect,
the Decision of the WTO Committee on Technical Barriers to Trade on Principles
for the Development of International Standards, Guides and Recommendations with
relation to Articles 2, 5 and Annex 3 of that Agreement shall also apply.
The Parties confirm their
rights and obligations with respect to each other under
the TBT Agreement.
1. The Parties shall
intensify their bilateral cooperation in the fields of standards, technical
regulations, and conformity assessment procedures with a view to facilitating
trade between them.
2. To this end, the Parties
shall seek to identify trade facilitating bilateral initiatives regarding
standards, technical regulations, and conformity assessment procedures that are
appropriate for particular issues or sectors. Such initiatives may include
cooperation on regulatory issues, such as convergence and/or equivalence of technical regulations
and standards, alignment with international standards, reliance on a supplier’s
declaration of conformity and use of accreditation to qualify conformity
assessment bodies, as well as cooperation through recognition of the results of
the conformity assessment procedures.
1. The Parties acknowledge
the importance of transparency in decision making, including
providing a meaningful opportunity for interested parties to provide comments
on proposed technical regulations and conformity assessment procedures. Where a
Party publishes a notice under Article 2.9 or 5.6 of the TBT Agreement, it shall:
a) include in the notice a statement describing the objective of the proposed technical regulation or conformity assessment procedure and the rationale for the approach the Party is proposing; and
b) transmit the proposal electronically to the other Party’s enquiry point, which has been established pursuant to Article 10 of the TBT Agreement, at the same time as it sends the notification to the WTO.
Each Party should allow, when it is possible, at least 60 days after it transmits a proposal under sub-paragraph (b) to the other Party to make comments on the proposal in writing.
2. Where a Party makes a
notification under Article 2.10 or 5.7 of the TBT Agreement,
it shall at the same time transmit the notification to the other Party electronically
through the enquiry point referenced in sub-paragraph 1(b).
3. On request of the other
Party, a Party shall provide the other Party information regarding the
objective of, and rationale for, a standard, technical regulation, or
conformity assessment procedure that the Party has adopted or is proposing to
With a view to fulfill the
objectives of this Chapter, the Parties shall, on the request of the other
Party and where possible, cooperate towards:
a) exchanging legislation, regulations, rules and other information and periodicals published by the national bodies responsible for technical regulations, standards, conformity assessment, metrology and accreditation;
b) exchanging general information and publications on conformity assessment, certification bodies, including notified bodies, designation and accreditation of conformity assessment bodies;
c) providing technical advise, information and assistance on mutually agreed terms and conditions and exchanging experience to enhance the other Party’s system for standards, technical regulations and conformity assessment procedures, and related activities;
d) increasing the information exchange, particularly regarding noncompliance of a product in bilateral trade with relevant technical regulations and conformity assessment procedures of a Party;
e) examining the compatibility and/or equivalence of their respective technical regulations, standards and conformity assessment procedures;
f) giving favorable consideration, on request of the other Party, to any sector specific proposal for further cooperation;
g) promoting and encouraging bilateral cooperation between respective organizations, public and/or private, of the Parties responsible for standardization, testing, certification, accreditation and metrology;
h) increasing their bilateral cooperation in the relevant international organizations and fora dealing with the issues covered by this Chapter; and
i) informing the other Party, as far as possible, about the agreements or programs subscribed at international level in relation to TBT issues.
on Standards, Technical Regulations and Conformity Assessment
1. The Parties hereby agree
to establish a Sub-Committee on Standards, Technical Regulations and Conformity
Assessment (hereinafter referred to as “the Sub-Committee on TBT Matters”). The
Sub-Committee on TBT Matters shall report to the Joint Committee of its
2. The Sub-Committee on TBT
Matters may address any matter related to the effective functioning of this
Chapter. The responsibilities and functions of the Sub-Committee on TBT Matters
a) monitoring and reviewing the implementation and administration of this Chapter;
b) promptly addressing any issue that a Party raises related to the preparation, adoption and application of standards, technical regulations or conformity assessment procedures;
c) providing a forum for discussions and exchanging information on Parties’ systems for standards, technical regulations, and conformity assessment procedures;
d) promoting, encouraging and otherwise facilitating bilateral cooperation between respective organizations, public and/or private, of the Parties responsible for standardization, testing, certification, accreditation and
e) exchanging information on developments in non-governmental, regional, and multilateral for a engaged in activities related to standardization, technical regulations, and conformity assessment procedures;
f) exploring any means aimed at improving access to the Parties’ respective markets and enhancing the functioning of this Chapter; and
g) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments.
3. The Sub-Committee on TBT
Matters shall meet at least once a year, unless otherwise agreed by the
Parties. By mutual agreement, ad hoc working groups may be established
4. The terms of reference
of the Sub-Committee on TBT Matters shall be determined in the first meeting of
the Joint Committee.
Any information or
explanation requested by a Party pursuant to provisions of this Chapter shall
be provided by the other Party in print or electronically within a reasonable
period of time.
1. Each Party retains its
rights and obligations under Article XIX of GATT 1994and the WTO Safeguards
Agreement, and any other relevant provisions in the WTO Agreement, and their
2. This Agreement does not
confer any additional rights or obligations on the Parties with regard to
actions taken pursuant to Article XIX of GATT 1994 and the WTO Safeguards
Agreement, and their successors.
1. The rights and
obligations of the Parties related to antidumping and countervailing measures
shall be governed by Article VI of GATT 1994, the WTO Agreement on
Implementation of Article VI of the GATT 1994 and the WTO Agreement on
Subsidies and Countervailing Measures, and their successors.
2. This Agreement does not
confer any additional rights or obligations on the Parties with regard to the
application of antidumping and countervailing measures, referred to in
paragraph 1 of this Article.
1. The Parties recognize
the importance of intellectual property in promoting economic and social development,
technological innovation, as well as in promoting the transfer and
dissemination of technology to the mutual advantage of technology producers and
users, particularly in the new digital economy.
2. The Parties reaffirm
their existing rights and obligations with respect to each other under the WTO
Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter
referred to as “the TRIPS Agreement”) and any other multilateral intellectual
property agreements to which both are party.
3. Nothing in this Chapter
shall prevent a Party from adopting appropriate measures to prevent:
the abuse of intellectual property rights by right holders or the resort to practices
that unreasonably restrain trade or adversely affect the international transfer
of technology; and
anticompetitive practices that may result from the
abuse of intellectual property rights
provided that such measures are
consistent with this Agreement.
4. The Parties shall
provide the legal means for interested parties to prevent commercial use of
country names of the other Party in relation to goods in a manner
which is likely to mislead consumers as to the origin of such goods.
5. Consistent with
paragraph 1, the Parties agree to cooperate with each other. Such cooperation may
include, inter alia:
notification of contact points;
b) exchange of information regarding the
intellectual property systems, aimed at promoting the efficient registration of
intellectual property rights;
other activities and initiatives as may be mutually
determined between the Parties.
1. Turkey shall
recognize “Pisco” as a Chilean geographical
indication for spirits, within the meaning of paragraph 1 of Article 22 of the
TRIPS Agreement. Turkey
shall not permit the sale of any product as “Pisco”,
unless it has been manufactured in Chile,
according to the laws of Chile
governing the manufacture
This shall not prejudice the rights that Turkey
may recognize, in addition to Chile,
with respect to “Pisco”.
2. Chile shall
recognize “Rakı” as a Turkish geographical
indication for spirits, within the meaning of paragraph 1 of Article 22 of the
TRIPS Agreement. Chile shall
not permit the sale of any product as “Rakı”,
unless it has been manufactured in Turkey,
according to the laws of Turkey
governing the manufacture of “Rakı”.
1. The Parties agree to
establish a framework for cooperative activities as a means to expand and
enhance the benefits of this Agreement and to build a strategic economic
2. Cooperation between the
Parties should contribute to achieving the objectives of this Agreement through
the identification and development of innovative cooperation initiatives
capable of providing added value to the
3. Without prejudice to the
provisions of the “Agreement on Trade and Economic, Technical and Scientific
Cooperation between the Government of the Republic of Turkey and the Government
of the Republic of Chile”, areas of cooperation may include but should not be
limited to innovation, research and development, agriculture, food production
and processing, air transport, mining, energy, environment, small and medium
size enterprises, tourism, gender issues, education, labor and employment
matters, human capital development and cultural collaboration.
4. Cooperation between the
Parties under this Title will complement the cooperation referred to in other
Titles of this Agreement.
5. The Parties will
establish close cooperation aimed inter alia at:
a) strengthening and building on existing cooperative relationships;
b) creating new opportunities for trade and investment, and for promoting competitiveness, fostering innovation and encouraging research and development;
c) supporting the role of the private sector in promoting and building strategic alliances to encourage mutual economic growth and development; and
d) increasing the level of and further developing cooperation activities between the Parties in areas of mutual interest.
6. Cooperative activities
will be agreed between the Parties and may include, but should not be limited
to exchange of people and information; cooperation in regional and multilateral
for a; dialogues, conferences and seminars; the development
of joint research programs; and the encouragement of private sector
7. The objectives of both
Parties in Labor Cooperation will be to promote decent work, sound labor
policies and practices of each Party’s labor systems, improve the capacities
and capabilities of the Parties and the development and management of human
capital for enhanced employability, business excellence and greater
productivity for the benefit of workers and employers, in the context of
strengthening trade and investment relations between them.
The Parties reaffirm their
obligations as members of the International Labor Organization
(ILO) and their commitments under the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up (1998). Each Party shall strive
to ensure that the principles embodied in such declaration and the internationally
recognized labor rights are included and protected by its domestic laws and
agree to cooperate on labor and employment matters of mutual interest and
benefit, through jointly decided activities which may refer, among others, to:
decent work, including its dimensions of employment,
labor standards, social protection and social dialogue;
compliance and enforcement systems and management of
labor disputes; and
employment systems, human capital development,
Parties recognize that it is inappropriate to encourage trade or investment by
weakening or reducing the protections afforded in domestic labor laws.
Accordingly, a Party shall not fail to effectively enforce its labor laws, in a
manner affecting trade between the Parties.
8. The Parties recognize
the importance of strengthening capacity to protect the environment and promote
sustainable development in concert with strengthening trade and investment
relations between them.
The Parties reaffirm their
intention to continue to pursue environmental protection, and to fulfill their
respective multilateral environment commitments.
The Parties endeavor to
have their environment laws, regulations, policies and practices in harmony
with their international environment commitments; agree that it is
inappropriate to set or use their environmental laws, regulations, policies and
practices for trade protectionist purposes; as well as it is inappropriate to
relax, or fail to enforce or administer, their environment laws and regulations
to encourage trade and investment.
The Parties agree to
cooperate in the field of the environment. The aim of cooperation will be the
prevention and/or reduction of contamination and degradation of natural
resources and ecosystems, and rational use of the latter; through developing
and endorsing special programs and projects dealing, inter alia, with the transfer of knowledge and technology.
Cooperation on environment
may include, but should not be limited to:
a) climate change;
b) biodiversity and conservation of natural resources;
c) management of hazardous chemicals;
d) air quality;
e) water management;
f) waste management;
g) marine and coastal ecological conservation and pollution control;
h) strategic environmental impact assessment;
i) improvement of environmental awareness, including environmental education and public participation.
9. New areas of cooperation
may be developed through existing agreements and
through appropriate implementing arrangements.
10. For the purposes of
this Title, the Joint Committee may decide to establish sub-committees or
regarding the implementation of this Title shall be distributed through the
contact points designated by each Party before the first meeting of the Joint
Unless otherwise provided
for in this Agreement, this Title shall apply with respect to the avoidance or
settlement of disputes between the Parties concerning the interpretation and
implementation of this Agreement, when a Party considers that:
a measure of the other Party is inconsistent with its
obligations under this Agreement; or
the other Party has otherwise failed to carry out its
obligations under this Agreement.
Dispute Settlement Procedure
1. Where a dispute
regarding any matter arises under this Agreement and the WTO Agreement, the
complaining Party may select the dispute settlement procedure in which to
settle the dispute.
2. Once the complaining
Party has requested a panel under an agreement referred to in paragraph 1, the
forum selected shall be used to the exclusion of the other.
1. The Parties shall at all
times endeavor to agree on the interpretation and implementation of this
Agreement and shall make every attempt through cooperation and consultations to
avoid and settle disputes between them and to arrive at a mutually satisfactory
resolution of any matter that might affect its operation.
2. Each Party may request
consultations within the Joint Committee with respect to an existing or
proposed measure or any matter relating to the interpretation and
implementation of this Agreement.
3. The requesting Party
shall deliver written notification to the other Party, stating the reasons for
the request, including the identification of the measure at issue and an
indication of the legal basis for the complaint, and providing sufficient
information to enable an examination of the matter.
4. The Joint Committee
shall convene within 30 days after the date of receipt of the request. Upon
initiation of consultations, the Parties shall provide information to enable
the examination of how the measure or any other matter might affect the
interpretation and implementation of this Agreement, and give confidential
treatment to the information exchanged during consultations.
5. The Joint Committee
shall endeavor to resolve the dispute promptly by means of a decision and may
make recommendations regarding the implementing measures to be taken by the
Party concerned, and the timeframe for doing so.
6. The Joint Committee may
call on technical advisers or create working groups or expert groups as it
deems necessary in order to assist the Parties to reach a mutually satisfactory
resolution of the dispute. The Parties may agree to suspend further proceedings
provided in the following articles during the activities envisaged in this
7. Consultations under this
Article shall be confidential and without prejudice to the rights of either
Party in any further proceedings.
of Arbitration Panels
1. The Parties shall at all
times endeavor to reach a mutually satisfactory agreement on the dispute.
2. If a matter, unless
otherwise mutually agreed, has not been resolved within 15 days after the Joint
Committee has convened pursuant to paragraph 4 of Article 40 or 45 days after
the date of receipt of the request for consultations within the Joint
Committee, whichever is earlier, the complaining party may
request in writing the
establishment of an arbitration panel.
3. Pursuant to this
Article, the complaining Party shall identify in the request for the
establishment of an arbitration panel, the specific measure at issue, the legal
basis of the complaint including any provision of this Agreement alleged to have
been breached and any other relevant provisions, the factual basis for the
complaint, and shall deliver the
request to the other Party.
4. The establishment of an
arbitration panel shall not be requested on any matter relating to a proposed
5. The date of
establishment of an arbitration panel shall be the date on which the chair is
Reference of Arbitration Panels
Unless the Parties otherwise
agree, within 20 days from the date of receipt of the request for the
establishment of the arbitration panel, the terms of reference of the
arbitration panel shall be:
examine, in the light of the relevant provisions of this Agreement, the matter
referred to in the request for the establishment of an arbitration panel pursuant
to Article 41, to make findings together with the reasons on whether the measure
is in conformity with the Agreement or not and to issue a written report for
the resolution of the dispute. If the Parties agree, the arbitration panel may
make recommendations for resolution of the dispute.”
1. Arbitration panels shall
consist of three arbitrators.
2. Each Party shall appoint
one arbitrator, who may be its national, within 30 days from the date of
receipt of the request for the establishment of the arbitration panel. The
Parties shall agree on and appoint the third arbitrator, who shall be the chair
of the arbitration panel, within 45 days after the date of receipt of the request
for the establishment of the arbitration panel, taking into account the list established
pursuant to paragraph 3. If the Parties fail to agree on and appoint the third
arbitrator within 45 days, the third arbitrator shall be chosen within seven days
by lot from the list established pursuant to paragraph 3.
3. The Joint Committee
shall, in its first meeting, establish a list of 10 individuals who are willing
and able to serve as third arbitrator. In establishing the list the Parties
will take into consideration the indicative list of governmental and
non-governmental arbitrators, established by the WTO. The Joint Committee shall
ensure that the list always contains 10 individuals at any point in time. These
individuals shall not be a national of either Party, nor have his or her usual place
of residence in either Party, nor be employed by either Party, nor have dealt with
the dispute in any capacity.
4. All arbitrators shall
have specialized knowledge or experience in law, international trade or other
matters relating to this Agreement or in the resolution of disputes deriving
from international trade agreements, be independent, serve in their individual
capacities and not be affiliated with, nor take instructions from, any Party or
organization and shall comply with the Code of Conduct, which will be adopted
by the Joint Committee upon the entry into force of this Agreement.
5. Where a Party considers
that an arbitrator does not comply with the requirements of the Code of
Conduct, the Parties shall consult and, if so agreed, they shall replace that
arbitrator in accordance with paragraph 6.
6. If an arbitrator
appointed under this Article becomes unable to participate in the proceeding or
resigns, or is to be replaced according to paragraph 5; a successor shall be
selected within 10 days in accordance with the selection procedure followed to
select that arbitrator. The successor shall have all the powers and duties of
the original arbitrator. The work of the arbitration panel shall be suspended
for a period beginning on the date the arbitrator becomes unable to participate
in the proceeding or resigns. The work of the arbitration panel shall resume on
the date the successor is appointed.
1. Panel meetings shall be
closed to the public, unless the Parties decide otherwise.
2. The Parties shall be
given the opportunity to provide at least one written submission and to attend
any of the presentations, statements or rebuttals in the proceedings. All
information or written submissions submitted by a Party to the arbitration
panel, including any comments on the draft report and responses to questions
put by the arbitration panel, shall be made available to the other Party.
3. A Party asserting that a
measure of the other Party is inconsistent with the provisions of this
Agreement shall have the burden of establishing such inconsistency. A Party
asserting that a measure is subject to an exception under this Agreement shall
have the burden of establishing that the exception applies.
4. The arbitration panel
should consult with the Parties as appropriate and provide adequate
opportunities for the development of a mutually satisfactory resolution.
5. The arbitration panel
shall aim to make its decisions, including its report, by consensus but may
also make its decisions, including its report, by majority vote.
6. At the request of a
Party or on its own initiative and subject to such terms and conditions as the
Parties may agree within 10 days, the arbitration panel may seek information
from any relevant source and may consult experts to obtain their opinion or
advice on certain aspects of the matter. The arbitration panel shall provide
the Parties with a copy of any advice or opinion obtained and an opportunity to
7. The deliberations of the
arbitration panel and the documents submitted to it shall be kept confidential.
paragraph 7, either Party may make public statements as to its views regarding
the dispute, but shall treat as confidential, information and written
submissions submitted by the other Party to the arbitration panel which the
other Party has designated as confidential. Where a Party has provided information
or written submissions designated to be confidential, that Party shall, within
30 days of a request of the other Party, provide a non-confidential summary of
the information or written submissions which may be disclosed
9. Each Party shall bear
the cost of its appointed arbitrator and its own expenses. The cost of the
chair of an arbitration panel and other expenses associated with the conduct of
the proceedings shall be borne by the Parties in equal shares. The costs and
expenses of the arbitrators shall normally conform to the WTO standards.
Termination of Proceedings
1. The Parties may agree
that the arbitration panel suspend its work at any time for a period not
exceeding 12 months from the date of such agreement. In the event of such a
suspension, the time-frames regarding the work of the arbitration panel shall
be extended by the amount of time that the work was suspended. If in any case,
the suspension of the work of the arbitration panel exceeds 12 months, the
authority for the establishment of the arbitration panel shall lapse unless the
Parties agree otherwise. This shall not prejudice to the rights of the
complaining party to request at a later stage, the establishment of an
arbitration panel on the
same subject matter.
2. The Parties may agree to
terminate the proceedings of the arbitration panel by jointly so notifying the
chair of the arbitration panel at any time before the issuance of the report to
1. The report of the
arbitration panel shall be drafted without the presence of the Parties. The
arbitration panel shall base its report on the relevant provisions of this Agreement and the submissions and arguments of the
Parties, and may take into account any other relevant information provided to
the arbitration panel.
2. The arbitration panel
shall submit its report containing its findings and conclusions to the Parties,
as a general rule not later than three months from the date of establishment of
the arbitration panel. If the arbitration panel cannot submit its report within
this period, it may extend that period to a maximum of five months from the
date of establishment of the arbitration panel.
3. Arbitration panels shall
interpret the provisions of this Agreement in accordance with customary rules
of interpretation of public international law, due account being taken of the
fact that the Parties must perform this Agreement in good faith and avoid
circumvention of their obligations.
4. In cases of urgency,
including those involving perishable goods, the arbitration panel shall make
every effort to issue its report to the Parties within 75 days from the date of
establishment of the arbitration panel. In no case should it do so later than
four months from that date. The arbitration panel may give a preliminary report
on whether a case is urgent.
5. The report of the
arbitration panel shall be final and binding on the Parties.
6. The report shall contain
both the descriptive part summarizing the submissions and arguments of the
Parties and the findings and determinations of the arbitration panel. If the
Parties agree, the arbitration panel may make recommendations for resolution of
the dispute in its report. The findings and determinations of the arbitration
panel and, if applicable, any recommendations cannot add to or diminish the
rights and obligations of the Parties provided in this Agreement.
of the Report
1. Unless the Parties agree
otherwise, the Party complained against shall eliminate the non-conformity as
determined in the report of the arbitration panel, immediately, or if this is not practicable, within a
reasonable period of time.
2. The reasonable period of
time referred to in paragraph 1 shall be mutually determined by the Parties.
Where the Parties fail to agree on the reasonable period of time within 45 days
after the date of issuance of the report of the arbitration panel referred to
in Article 46, either Party may refer the matter to an arbitration panel, which
shall determine the reasonable period of time.
3. The Party complained
against shall notify to the complaining Party the implementing measures adopted
in order to put an end to the violation of its obligations under this
Agreement, before the expiry of the reasonable period of time agreed by the
Parties or determined in accordance with paragraph 2. Where there is
disagreement between the Parties as to whether the Party complained against
eliminated the non-conformity as determined in the report of the arbitration
panel within the reasonable period of time as determined pursuant to paragraph
2, either Party may refer the matter to an arbitration panel as provided for in
Compensation and Suspension of Concessions or Other
1. If the Party complained
against fails to notify the implementing measures before the expiry of the
reasonable period of time, or notifies the complaining Party that it is impracticable,
or the arbitration panel to which the matter is referred pursuant to paragraph
3 of Article 47 rules that the Party complained against has failed to eliminate
the non-conformity within the reasonable period of time, the Party complained
against shall, if so requested, enter into negotiations with the complaining
Party with a view to reaching mutually satisfactory
2. If there is no agreement
on satisfactory compensation within 20 days after the date of receipt of the
request mentioned in paragraph 1, the complaining Party may suspend the
application to the Party complained against of concessions or other obligations
under this Agreement, after giving notification of such suspension 30 days in
advance. Such notification may only be given 20 days after the date of receipt
of the request mentioned in paragraph 1.
3. The compensation
referred to in paragraph 1 and the suspension referred to in paragraph 2 shall
be temporary measures. Neither compensation nor suspension is preferred to full
elimination of the non-conformity as determined in the report of the
arbitration panel. The suspension shall only be applied until such
time as the non-conformity is
fully eliminated or a mutually satisfactory solution is reached.
4. In considering what concessions
or other obligations to suspend pursuant to paragraph 2:
the complaining Party should first seek to suspend
concessions or other obligations with respect to the same sector(s) as that in
which the report of the arbitration panel referred to in Article 46 has found a
comply with the obligations under this Agreement; and
if the complaining Party considers that it is not
practicable or effective to suspend concessions or other obligations with
respect to the same sector(s), it may suspend concessions or other obligations
to other sectors. The notification of such suspension
pursuant to paragraph 2 shall indicate the reasons on which it is based. In the
selection of the benefits to suspend, the Parties will take into consideration
those which least disturb the functioning of this Agreement.
5. The level of suspension
referred to in paragraph 2 shall be equivalent to the level of the
nullification or impairment.
6. If the Party complained
against considers that the requirements for the suspension of concessions or
other obligations by the complaining Party set out in paragraphs 2, 3, 4 or 5
have not been met, it may refer the matter to an arbitration panel. Concessions
or other obligations shall not be suspended until the arbitration panel has its
7. The arbitration panel
that is established for the purposes of this Article or Article 47 shall have,
wherever possible, as its arbitrators, the arbitrators of the original
arbitration panel. If this is not possible, then the arbitrators to the arbitration
panel that is established for the purposes of this Article or Article 47 shall
be appointed pursuant to Article 43. The arbitration panel established under this
Article or Article 47 shall submit its report to the Parties within 60 days
after the date when the matter is referred to it. When the arbitration panel
considers that it cannot issue its report within the aforementioned 60 day
period, it may extend that period for a maximum of 30 days with the consent of
the Parties. The report shall be final and binding on the Parties.
The Joint Committee shall
adopt the Rules of Procedure which provide for the details of the rules and
procedures of arbitration panels established under this Title, upon the entry
into force of this Agreement. Unless the Parties otherwise agree, the
arbitration panel shall follow the rules of procedure adopted by the
Joint Committee and may, after consulting the Parties, adopt additional rules of
procedure not inconsistent with the rules adopted by the Joint Committee.
Modification of Rules and Procedures
Any time period or other
rules and procedures for arbitration panels provided for in this Title, including
the Rules of Procedure referred to in Article 49, may be modified by mutual
consent of the Parties. The Parties may also agree at any time not to apply any
provision of this Title.
TRANSPARENCY, INSTITUTIONAL PROVISIONS, EXCEPTIONS AND
and Exchange of Information
1. In order to facilitate
communication between the Parties on any trade matter covered by this
Agreement, the Parties hereby establish the following contact points:
Republic of Turkey: Prime
Ministry, Under secretariat for Foreign Trade, or its
Republic of Chile: the Europe
Department of the General Directorate of International Economic Affairs, or its
2. On the request of either
Party, the contact point of the other Party shall indicate the office or
official responsible for the matter and provide the required support to
facilitate communication with the requesting Party. Each Party shall notify the
other Party of any changes of its contact point in due time.
3. On request of the other
Party, and to the extent possible under its domestic laws and regulations, each
Party shall provide information and reply to any question from the other Party
relating to an actual or proposed measure that might substantially affect the
operation of this Agreement.
4. 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.
The Parties agree to
cooperate in bilateral and multilateral for a on ways
to increase transparency in trade matters.
Each Party shall ensure
that its laws and regulations relating to any trade matter covered by this
Agreement are published or made publicly available.
of the Joint Committee
1. A Joint Committee is
hereby established in which each Party shall be represented by its senior
officials. The Joint Committee shall be responsible for the administration of
this Agreement and shall ensure its proper implementation.
2. For the objective of the
proper implementation of this Agreement, the Joint Committee shall work in
pursuant with the following purposes; included but not limited to:
review the general functioning of this Agreement;
set up sub-committees and working groups as it
considers necessary to assist it in accomplishing its tasks;
review, consider and, as appropriate, decide on specific matters related to the
operation and implementation of this Agreement, including matters reported by
sub-committees or working groups;
supervise the work of sub-committees, working groups
and contact points established under this Agreement;
facilitate, as appropriate, the avoidance and
settlement of disputes arising under this Agreement, including through
consultations pursuant to Article 40;
consider and adopt any amendment to this Agreement or
other modification or rectification to the commitments therein. The Parties shall
implement any amendment or other modification approved by the Joint Committee
subject to the completion of the following procedures:
i. In the case of Chile, through Executive
Agreements (Acuerdos de Ejecución),
in accordance with the Political Constitution of the Republic of Chile (Constitución Política de la República de Chile).
ii. In the case of
Turkey, in accordance with the
applicable internal procedures.
ppropriate, issue interpretations of the
review the possibility of further removal of the
obstacles to trade between the Parties and the further development of the trade relationship;
i) explore ways to enhance
further trade and investment between the Parties and to further the objectives
of this Agreement; and
take such other actions as the Parties may agree.
the Joint Committee
1. The Joint Committee
shall meet whenever necessary upon request but normally at least once a year.
Either Party may request a meeting to be held.
2. All decisions of the
Joint Committee shall be taken by mutual agreement.
3. The Joint Committee
shall adopt its rules of procedure.
For the purpose of this
Agreement, Article XX of GATT 1994 and its interpretative notes are
incorporated into and made part of this Agreement, mutatis mutandis.
1. Nothing in this
Agreement shall be construed:
to require a Party to furnish any information the disclosure of which it considers
contrary to its essential security interests; or
to prevent a Party from taking any action which it
considers necessary for the protection of its essential security interests
i. relating to fissionable
materials or the materials from which they are derived;
relating to the traffic in arms, ammunition and
implements of war and to such traffic in other goods and materials, as is
carried on directly or indirectly for the purpose of supplying a military establishment;
taken in time of war or other emergency in international
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. A Party taking action
under sub-paragraphs (b) and (c) of paragraph 1, shall inform the Joint
Committee to the fullest extent possible of measures taken and of their
Payments Measures on Trade in Goods
Should a Party decide to
impose measures for balance of payments purposes, it shall do, so only in
accordance with that Party’s rights and obligations under GATT 1994, including
the Declaration on Trade Measures Taken for Balance of Payments Purposes (1979
Declarations) and the Understanding on the Balance of Payments Provisions of the
GATT 1994 (BOP Understanding). In adopting such measures, the Party shall
immediately consult with the other Party.
1. For the purposes of this
Article, “tax convention” means a convention for the avoidance of double
taxation or other international taxation agreement or arrangement in force
between the Parties; and taxation measures do not include a “customs duty” as
defined in Article 8.
2. Except as provided in
this Article, nothing in this Agreement shall apply to taxation measures.
3. This Agreement shall
only grant rights or impose obligations with respect
to taxation measures where corresponding rights or obligations are also granted
or imposed under Article III of GATT 1994.
4. Nothing in this
Agreement shall affect the rights and obligations of the Parties under any tax
convention in force between the Parties. In the event of any inconsistency
relating to a taxation measure between this Agreement and such tax convention,
the latter shall prevail to the extent of the inconsistency. In the case
of a tax convention between
the Parties, the competent authorities under that convention shall have sole
responsibility for determining whether any inconsistency exists between this
Agreement and that convention.
Disclosure of Information
1. Each Party shall, in
accordance with its laws and regulations, maintain the confidentiality of
information provided in confidence by the other Party pursuant to this
2. Nothing in this
Agreement shall be construed as requiring a Party to furnish or allow access to
confidential information, the disclosure of which would impede law enforcement
or otherwise be contrary to the public interest or which would prejudice the
legitimate commercial interests of particular enterprises,
public or private.
1. The Parties may mutually
agree to extend this Agreement with the aim of broadening and supplementing its
scope in accordance with their respective legislation, by concluding agreements
on specific sectors or activities in the light of the experience gained during
2. Unless otherwise agreed,
no later than two years after the entry into force of this Agreement, the
Parties will commence exploratory talks on trade in services and investment.
Annexes to this Agreement
shall form an integral part thereof.
1. The Parties may agree,
in writing, on any modification of or addition to this Agreement.
2. When so agreed, and
approved in accordance with the necessary domestic legal procedures of each
Party, a modification or addition shall constitute an integral part of this
Agreement. Such amendment shall enter into force on the first day of the second
month following the date on which the Parties exchange written notification
that such procedures have been completed, or after such other period as the
Parties may agree.
1. The Parties shall ratify
this Agreement in accordance with their domestic legal procedures.
2. This Agreement shall
enter into force on the first day of the second month following the date on
which the Parties exchange written notification that such procedures have been
1. This Agreement shall be
2. Either Party may give
written notice to the other of its intention to denounce this Agreement.
Denunciation shall take effect on the first day of the seventh month after
notification to the other Party.
This Agreement shall be
done in English, Spanish, and Turkish languages, all being equally authentic.
In case of divergence, the English text shall prevail.
IN WITNESS WHEREOF the undersigned
plenipotentiaries, being duly authorized thereto, have signed this
DONE at Santiago,
Republic of Chile, in two originals, this fourteenth
day of July two thousand and nine.
For the Republic of Chile
For the Republic of Turkey