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Part Four: Administrative and Institutional Provisions

Chapter L: Publication, Notification and Administration of Laws

Article L-01: Contact Points

Each Party shall designate a contact point to facilitate communications between the Parties on any matter covered by this Agreement. On the request of the other Party, the contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.

Article L-02: Publication

1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.

2. To the extent possible, each Party shall:
   (a) publish in advance any such measure that it proposes to adopt; and

   (b) provide interested persons and the other Party a reasonable opportunity to comment on such proposed measures.

Article L-03: Notification and Provision of Information

1. To the maximum extent possible, each Party shall notify the other Party of any proposed or actual measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect the other Party's interests under this Agreement.

2. On request of the other Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, whether or not the other Party has been previously notified of that measure.

3. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.

Article L-04: Administrative Proceedings

With a view to administering in a consistent, impartial and reasonable manner all measures of general application affecting matters covered by this Agreement, each Party shall ensure that in its administrative proceedings applying measures referred to in Article L-02 to particular persons, goods or services of the other Party in specific cases that:
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which theproceeding is initiated and a general description of any issues in controversy;

(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding and the public interest permit; and

(c) its procedures are in accordance with domestic law.

Article L-05: Review and Appeal

1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.

2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
   (a) a reasonable opportunity to support or defend their respective positions; and

   (b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority.

3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the offices or authorities with respect to the administrative action at issue.

Article L-06: Definitions

For purposes of this Chapter:
administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good or service of the other Party in a specific case; or

(b) a ruling that adjudicates with respect to a particular act or practice.

Article M-01: Reciprocal Exemption from the Application of Anti-dumping

Duty Laws

1. Subject to Article M-03, as of the date of entry into force of this Agreement each Party agrees not to apply its domestic anti-dumping law to goods of the other Party. Specifically:
   (a) neither Party shall initiate any anti-dumping investigations or reviews with respect to goods of the other Party;

   (b) each Party shall terminate any ongoing anti-dumping investigations or inquiries in respect of such goods;

   (c) neither Party shall impose new anti-dumping duties or other measures in respect of such goods; and

   (d) each Party shall revoke all existing orders levying anti-dumping duties in respect of such goods.

2. Each Party shall amend, and publish as appropriate, its relevant domestic anti-dumping law in relation to goods of the other Party to ensure that the objectives of this Article are achieved.

Article M-02: Rules of Origin

Article M-01 applies only to goods that the competent investigating authority of the importing Party, applying the importing Party's anti-dumping law to the facts of a specific case, determines are goods of the other Party.

Article M-03: Phase-in Provisions

1. Article M-01 applies to all goods of the other Party as of:
   (a) the date on which the tariff of both Parties is eliminated at the subheading level; or

   (b) January 1, 2003,

   whichever comes first.

2. For the purpose of paragraph 1, elimination at the subheading level occurs when the tariff for each eight-digit tariff line under the six-digit subheading is zero under this Agreement.

Article M-04: Exceptional Circumstances

1. Either Party may request, in writing, consultations with the other Party regarding exceptional circumstances that may arise with respect to the operation of this Chapter.

2. Exceptional circumstances may include significant changes in recent trading conditions.

3. The Parties shall enter into consultations within 10 days of receipt of a request and shall conclude such consultations within 30 days of such receipt, except where the matter involves perishable goods, in which case the consultations shall be concluded within 20 days.

4. In the consultations, the Parties shall make every attempt to arrive at a mutually satisfactory resolution of the particular matter, with a view to promptly restoring recent trading conditions. To this end, the Parties shall:
   (a) provide sufficient information to enable a full examination of the exceptional circumstances; and

   (b) treat any confidential or proprietary information exchanged in the course of consultations on the same basis as the Party providing the information.

5. These consultations shall be without prejudice to a Party's right to invoke any applicable government-to-government dispute settlement procedures available under this Agreement or the WTO Agreement.

Article M-05: Committee on Anti-dumping and Countervailing Measures

The Parties hereby establish a Committee on Anti-dumping and Countervailing Measures to:
(a) consult with a view to defining subsidy disciplines further and eliminating the need for domestic countervailing duty measures on trade between them;

(b) work together in multilateral fora, including the World Trade Organization, and in the context of negotiating Chile's full accession to the NAFTA and the establishment of a Free Trade Area of the Americas, with a view to improving trade remedy regimes to minimize their potential to impede trade;

(c) consult on opportunities for working together with other like-minded countries with a view to expanding agreement on the elimination of the application of anti-dumping measures within free trade areas;

(d) facilitate Chile's full accession to the NAFTA, and in particular Chapter Nineteen, by examining the current domestic anti-dumping and countervailing duty regimes and the operation of the Parties' legal systems, including judicial review of administrative agency decisions; and

(e) meet annually, and on the request of either Party, to review the operation of this Chapter and other related matters including competition laws and policies.

Article M-06: Review

The Parties shall, not later than 5 years after the coming into force of this Agreement, meet to review this Chapter and to determine whether any changes should be made to its provisions.

Article M-07: Dispute Resolution

1. The dispute settlement provisions of Chapter N (Institutional Arrangements and Dispute Settlement Procedures) shall apply with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of Articles M-01, M-02, M-03 or M-04 and paragraphs 7 through 9 of this Article.

2. Apart from this Chapter, no provision of this Agreement shall be construed as imposing obligations on a Party with respect to either Party's anti-dumping or countervailing duty law.

3. Except as otherwise provided in paragraph 1, all disputes between the Parties arising in respect of the application of anti-dumping measures or countervailing duty measures by either Party shall be settled in accordance with the WTO Agreement.

4. Where a dispute referred to in paragraph 3 involves, as disputing Parties, Canada and Chile exclusively, the Parties shall act in accordance with the following procedures consistent with the DSU:
   (a) if a request for consultations under Article 4 of the DSU is made, the Parties shall enter into consultations within 10 days of receipt of the request and shall conclude such consultations within 30 days of such receipt, except where the matter involves perishable goods, in which case consultations shall be concluded within 20 days;

   (b) a Party shall not object to the establishment of a panel that has been requested by the other Party under Article 6(1) of the DSU at the first meeting of the DSB at which the request is examined; and

   (c) unless the Parties otherwise agree, the terms of reference of the panel shall be to determine whether the imposition of an anti-dumping measure or a countervailing duty measure against a good of the complaining Party by the Party complained against is in accordance with Article VI of the GATT 1994, or the Agreement on Subsidies and Countervailing Measures or the Agreement on Implementation of Article VI of the GATT 1994.

5. Unless the Parties otherwise agree, where a DSU panel issues a final report concluding that the imposition by either Canada or Chile of an anti-dumping measure or a countervailing duty measure against a good of the other Party is not in accordance with Article VI of the GATT 1994, or the Agreement on Subsidies and Countervailing Measures or the Agreement on Implementation of Article VI of the GATT 1994, the Party complained against shall direct its competent authorities to take action not inconsistent with the panel report with respect to the goods of the complaining Party, including, where appropriate, the refund, with interest, of the whole or part of the duty paid.

6. The final report of the DSU panel shall be deemed to be a final report of a panel under Article N-16.

7. The Party complained against shall not be required to take action pursuant to paragraph 5 until:
   (a) the time period for notification to the DSB of a decision to appeal under Article 16(4) of the DSU has expired; or

   (b) the panel report is adopted following completion of the appeal procedure under Article 17 of the DSU.

8. Following the expiration of the time period referred to in subparagraph 7(a) or the adoption of the panel report referred to in subparagraph 7(b), if the Party complained againstfails to comply with the final report of a DSU panel pursuant to paragraph 4 within a reasonable period of time, and no compensation has been offered in lieu thereof and no other mutually satisfactory resolution of the matter has been reached, the complaining Party may suspend the application to the Party complained against of benefits of equivalent effect under Article N-18 until such time as the matter is resolved.

9. If a Party chooses to suspend benefits in accordance with Article N-18 as well as under the DSU, the combined effect of such suspension of benefits may not be greater than the effect of the violation.

Article M-08: Definitions

For purposes of this Chapter:
Agreement on Implementation of Article VI of the GATT 1994 means the Agreement on Implementation of Article VI of the General Agreement on Tariff and Trade 1994, which forms part of the WTO Agreement;

Agreement on Subsidies and Countervailing Measures means the Agreement on Subsidies and Countervailing Measures, which forms part of the WTO Agreement;

Competent investigating authority means:

(a) in the case of Canada
(i) the Canadian International Trade Tribunal or its successor; or

(ii) the Deputy Minister of National Revenue as defined in the Special Import Measures Act, as amended, or the Deputy Minister's successor; and

(b) in the case of Chile, the National Commission for the Investigation of the Existence of Price Distortions in Imported Goods (“Comisión Nacional Encargada de Investigar la Existencia de Distorsiones en el Precio de las Mercaderías Importadas”), or its successor;

domestic anti-dumping law means a Party's relevant statutes, regulations and administrative guidelines;

DSB means the Dispute Settlement Body established in Article 2 of the DSU; and

reasonable period of time means the period necessary for review and the taking of action not inconsistent with the panel report, taking into account the factual and legal issues involved. In no event shall the reasonable period of time exceed an amount of time equal to the maximum permitted for investigation (from initiation to final order) to be carried out under the relevant WTO Agreements.

Section I: Institutions

Article N-01: The Free Trade Commission

1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level representatives of the Parties or their designees.

2. The Commission shall:
   (a) supervise the implementation of this Agreement;

   (b) oversee its further elaboration;

   (c) resolve disputes that may arise regarding its interpretation or application;

   (d) supervise the work of all committees and working groups established under this Agreement, referred to in Annex N-01.2; and

   (e) consider any other matter that may affect the operation of this Agreement.

3. The Commission may:
   (a) establish, and delegate responsibilities to, ad hoc or standing committees, working groups or expert groups;

   (b) seek the advice of nongovernmental persons or groups; and

   (c) take such other action in the exercise of its functions as the Parties may agree.

4. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by mutual agreement.

5. The Commission shall convene at least once a year in regular session. Regular sessions of the Commission shall be chaired alternately by each Party.

Article N-02: The Secretariat

1. The Commission shall establish and oversee a Secretariat comprising national Sections.

2. Each Party shall:
   (a) establish a permanent office of its Section;

   (b) be responsible for

   (i) the operation and costs of its Section, and

   (ii) the remuneration and payment of expenses of panelists and members of committees and scientific review boards established under this Agreement, as set out in Annex N-02.2;

   (c) designate an individual to serve as Secretary for its Section, who shall be responsible for its administration and management; and

   (d) notify the Commission of the location of its Section's office.

3. The Secretariat shall:
   (a) provide assistance to the Commission;

   (b) provide administrative assistance to panels established under this Chapter, in accordance with procedures established pursuant to Article N-12; and

   (c) as the Commission may direct

   (i) support the work of other committees and groups established under this Agreement, and

   (ii) otherwise facilitate the operation of this Agreement.

Section II: Dispute Settlement

Article N-03: Cooperation

The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.

Article N-04: Recourse to Dispute Settlement Procedures

Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement or wherever a Party considers that an actual or proposed measure of the other Party is or would be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of Annex N-04.

Article N-05: WTO Dispute Settlement

1. Subject to paragraph 2, disputes regarding any matter arising under both this Agreement and the WTO Agreement, any agreement negotiated thereunder, or any successor agreement, may be settled in either forum at the discretion of the complaining Party.

2. In any dispute referred to in paragraph 1 where the responding Party claims that its action is subject to Article A-04 (Relation to Environmental and Conservation Agreements) and requests in writing that the matter be considered under this Agreement, the complaining Party may, in respect of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement.

3. The responding Party shall deliver a copy of a request made pursuant to paragraph 2 to its Section of the Secretariat and the other Party. Where the complaining Party has initiated dispute settlement proceedings regarding any matter subject to paragraph 2, the responding Party shall deliver its request no later than 15 days thereafter. On receipt of such request, the complaining Party shall promptly withdraw from participation in those proceedings and may initiate dispute settlement procedures under Article N-07.

4. Once dispute settlement procedures have been initiated under Article N-07 or dispute settlement proceedings have been initiated under the WTO Agreement, the forum selected shall be used to the exclusion of the other, unless a Party makes a request pursuant to paragraph 2.

5. For purposes of this Article, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for a panel, such as under Article 6 of the DSU.

Consultations

Article N-06: Consultations

1. A Party may request in writing consultations with the other Party regarding any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement.

2. The requesting Party shall deliver the request to its Section of the Secretariat and the other Party.

3. Consultations on matters regarding perishable agricultural goods shall commence within 15 days of the date of delivery of the request.

4. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of any matter through consultations under this Article or other consultative provisions of this Agreement. To this end, the Parties shall:
   (a) provide sufficient information to enable a full examination of how the actual or proposed measure or other matter might affect the operation of this Agreement; and

   (b) treat any confidential or proprietary information exchanged in the course of consultations on the same basis as the Party providing the information.

Initiation of Procedures

Article N-07: Commission - Good Offices, Conciliation and Mediation

1. If the Parties fail to resolve a matter pursuant to Article N-06 within:
   (a) 30 days of delivery of a request for consultations;

   (b) 15 days of delivery of a request for consultations in matters regarding perishable agricultural goods; or

   (c) such other period as they may agree,

   either Party may request in writing a meeting of the Commission.

2. A Party may also request in writing a meeting of the Commission where:
   (a) it has initiated dispute settlement proceedings under the WTO Agreement regarding any matter subject to Article N-05(2), and has received a request pursuant to Article N-05(3) for recourse to dispute settlement procedures under this Chapter; or

   (b) consultations have been held in the Committee on Trade in Goods and Rules of Origin pursuant to Article C-15.

3. The requesting Party shall state in the request the measure or other matter complained of and indicate the provisions of this Agreement that it considers relevant, and shall deliver the request to its Section of the Secretariat and the other Party.

4. Unless it decides otherwise, the Commission shall convene within 10 days of delivery of the request and shall endeavour to resolve the dispute promptly.

5. The Commission may:
   (a) call on such technical advisers or create such working groups or expert groups as it deems necessary;

   (b) have recourse to good offices, conciliation, mediation or such other dispute resolution procedures; or

   (c) make recommendations,

   as may assist the Parties to reach a mutually satisfactory resolution of the dispute.

6. Unless it decides otherwise, the Commission shall consolidate two or more proceedings before it pursuant to this Article regarding the same measure. The Commission may consolidate two or more proceedings regarding other matters before it pursuant to this Article that it determines are appropriate to be considered jointly.

Panel Proceedings

Article N-08: Request for an Arbitral Panel

1. If the Commission has convened pursuant to Article N-07(4), and the matter has not been resolved within:
   (a) 30 days thereafter;

   (b) 30 days after the Commission has convened in respect of the matter most recently referred to it, where proceedings have been consolidated pursuant to Article N-07(6); or

   (c) such other period as the Parties may agree,

   a Party may request in writing the establishment of an arbitral panel. The requesting Party shall deliver the request to its Section of the Secretariat and the other Party.

2. On delivery of the request, the Commission shall establish an arbitral panel.

3. Unless otherwise agreed by the Parties, the panel shall be established and perform its functions in a manner consistent with the provisions of this Chapter.

Article N-09: Roster

1. The Parties shall establish by January 1, 1998 at the latest and maintain a roster of up to 20 individuals, 4 of whom must not be citizens of either of the Parties, who are willing and able to serve as panelists. The roster members shall be appointed by agreement of the Parties for terms of three years, and may be reappointed.

2. Roster members shall:
   (a) have expertise or experience in law, international trade, other matters covered by this Agreement or the resolution of disputes arising under international trade agreements, and shall be chosen strictly on the basis of objectivity, reliability and sound judgment;

   (b) be independent of, and not be affiliated with or take instructions from, any Party; and

   (c) comply with a code of conduct to be established by the Commission.

Article N-10: Qualifications of Panelists

1. All panelists shall meet the qualifications set out in Article N-09(2).

2. Individuals may not serve as panelists for a dispute in which they have participated pursuant to Article N-07(5).

Article N-11: Panel Selection

1. The following procedures shall apply to panel selection:
   (a) The panel shall comprise five members;

   (b) The Parties shall endeavour to agree on the chair of the panel within 15 days of the delivery of the request for the establishment of the panel. If the Parties are unable to agree on the chair within this period, the Party chosen by lot shall select within five days as chair an individual who is not a citizen of a Party;

   (c) Within 15 days of selection of the chair, each Party shall select two panelists who are citizens of the other Party; and

   (d) If a Party fails to select its panelists within such period, such panelists shall be selected by lot from among the roster members who are citizens of the other Party.

2. Panelists shall normally be selected from the roster. A Party may exercise a peremptory challenge against any individual not on the roster who is proposed as a panelist by the other Party within 15 days after the individual has been proposed.

3. If a Party believes that a panelist is in violation of the code of conduct, the Parties shall consult and if they agree, the panelist shall be removed and a new panelist shall be selected in accordance with this Article.

Article N-12: Rules of Procedure

1. The Commission shall establish, by the date of entry into force of this Agreement, Model Rules of Procedure, in accordance with the following principles:
   (a) the procedures shall assure a right to at least one hearing before the panel as well as the opportunity to provide initial and rebuttal written submissions; and

   (b) the panel's hearings, deliberations and initial report, and all written submissions to and communications with the panel shall be confidential.

2. The Commission may amend from time to time the Model Rules of Procedure referred to in paragraph 1.

3. Unless the Parties otherwise agree, the panel shall conduct its proceedings in accordance with the Model Rules of Procedure.

4. Unless the Parties otherwise agree within 20 days from the date of the delivery of the request for the establishment of the panel, the terms of reference shall be:

   "To examine, in the light of the relevant provisions of the Agreement, the matter referred to the Commission (as set out in the request for a Commission meeting) and to make findings, determinations and recommendations as provided in Article N-15(2)."

5. If the complaining Party wishes to argue that a matter has nullified or impaired benefits, the terms of reference shall so indicate.

6. If a Party wishes the panel to make findings as to the degree of adverse trade effects on a Party of any measure found not to conform with the obligations of the Agreement or to have caused nullification or impairment in the sense of Annex N-04, the terms of reference shall so indicate.

Article N-13: Role of Experts

On request of a Party, or on its own initiative, the panel may seek information and technical advice from any person or body that it deems appropriate, provided that the Parties so agree and subject to such terms and conditions as the Parties may agree.

Article N-14: Scientific Review Boards

1. On request of a Party or, unless the Parties disapprove, on its own initiative, the panel may request a written report of a scientific review board on any factual issue concerning environmental, health, safety or other scientific matters raised by a Party in a proceeding, subject to such terms and conditions as the Parties may agree.

2. The board shall be selected by the panel from among highly qualified, independent experts in the scientific matters, after consultations with the Parties and the scientific bodies set out in the Model Rules of Procedure established pursuant to Article N-12(1).

3. The Parties shall be provided:
   (a) advance notice of, and an opportunity to provide comments to the panel on, the proposed factual issues to be referred to the board; and

   (b) a copy of the board's report and an opportunity to provide comments on the report to the panel.

4. The panel shall take the board's report and any comments by the Parties on the report into account in the preparation of its report.

Article N-15: Initial Report

1. Unless the Parties otherwise agree, the panel shall base its report on the submissions and arguments of the Parties and on any information before it pursuant to Article N-13 or N-14.

2. Unless the Parties otherwise agree, the panel shall, within 90 days after the last panelist is selected or such other period as the Model Rules of Procedure established pursuant to Article N-12(1) may provide, present to the Parties an initial report containing:
   (a) findings of fact, including any findings pursuant to a request under Article N-12(6);

   (b) its determination as to whether the measure at issue is or would be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of Annex N-04, or any other determination requested in the terms of reference; and

   (c) its recommendations, if any, for resolution of the dispute.

3. Panelists may furnish separate opinions on matters not unanimously agreed.

4. A Party may submit written comments to the panel on its initial report within 14 days of presentation of the report.

5. In such an event, and after considering such written comments, the panel, on its own initiative or on the request of a Party, may:
   (a) request the views of a Party;

   (b) reconsider its report; and

   (c) make any further examination that it considers appropriate.

Article N-16: Final Report

1. The panel shall present to the Parties a final report, including any separate opinions on matters not unanimously agreed, within 30 days of presentation of the initial report, unless the Parties otherwise agree.

2. No panel may, either in its initial report or its final report, disclose which panelists are associated with majority or minority opinions.

3. The Parties shall transmit to the Commission the final report of the panel, including any report of a scientific review board established under Article N-14, as well as any written views that a Party desires to be appended, on a confidential basis within a reasonable period of time after it is presented to them.

4. Unless the Commission decides otherwise, the final report of the panel shall be published 15 days after it is transmitted to the Commission.

Implementation of Panel Reports

Article N-17: Implementation of Final Report

1. On receipt of the final report of a panel, the Parties shall agree on the resolution of the dispute, which normally shall conform with the determinations and recommendations of the panel, and shall notify their Sections of the Secretariat of any agreed resolution of any dispute.

2. Wherever possible, the resolution shall be nonimplementation or removal of a measure not conforming with this Agreement or causing nullification or impairment in the sense of Annex N-04 or, failing such a resolution, compensation.

Article N-18: Non-Implementation - Suspension of Benefits

1. If in its final report a panel has determined that a measure is inconsistent with the obligations of this Agreement or causes nullification or impairment in the sense of Annex N-04 and the Party complained against has not reached agreement with the complaining Party on a mutually satisfactory resolution pursuant to Article N-17(1) within 30 days of receiving the final report, the complaining Party may suspend the application to the Party complained against of benefits of equivalent effect until such time as they have reached agreement on a resolution of the dispute.

2. In considering what benefits to suspend pursuant to paragraph 1:
   (a) the complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure or other matter that the panel has found to be inconsistent with the obligations of this Agreement or to have caused nullification or impairment in the sense of Annex N-04; and

   (b) if the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors.

3. On the written request of a Party delivered to its Section of the Secretariat and the other Party, the Commission shall establish a panel to determine whether the level of benefits suspended by a Party pursuant to paragraph 1 is manifestly excessive.

4. The panel proceedings shall be conducted in accordance with the Model Rules of Procedure. The panel shall present its determination within 60 days after the last panelist is selected or such other period as the Parties may agree.

Section III: Domestic Proceedings and Private Commercial Dispute Settlement

Article N-19: Referrals of Matters from Judicial or Administrative Proceedings

1. If an issue of interpretation or application of this Agreement arises, in any domestic judicial or administrative proceeding of a Party, that either Party considers would merit its intervention, or if a court or administrative body solicits the views of a Party, that Party shall notify its Section of the Secretariat and the other Party. The Commission shall endeavour to agree on an appropriate response as expeditiously as possible.

2. The Party in whose territory the court or administrative body is located shall submit any agreed interpretation of the Commission to the court or administrative body in accordance with the rules of that forum.

3. If the Commission is unable to agree, each Party may submit its own views to the court or administrative body in accordance with the rules of that forum.

Article N-20: Private Rights

Neither Party may provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.

Article N-21: Alternative Dispute Resolution

1. Each Party shall, to the maximum extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area.

2. To this end, each Party shall provide appropriate procedures to ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in such disputes.

3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to and is in compliance with the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards or the 1975

4. The Commission shall establish an Advisory Committee on Private Commercial Disputes comprising persons with expertise or experience in the resolution of private international commercial disputes. The Committee shall report and provide recommendations to the Commission on general issues referred to it by the Commission respecting the availability, use and effectiveness of arbitration and other procedures for the resolution of such disputes in the free trade area.

Annex N-01.2: Committees and Working Groups

1. Committees:
   1. Committee on Trade in Goods and Rules of Origin (Article C-15)
      • Sub-Committee on Agriculture (Article C-15(4))

      • Customs Sub-Committee (Article E-13)

   2. Committee on Telecommunications Standards (Article I-04(7))

   3. Committee on Anti-dumping and Countervailing Measures (Article M-05)

   4. Advisory Committee on Private Commercial Disputes (Article N-21(4))

2. Working Group:
   Temporary Entry Working Group (Article K-05)

NOTES

Chapter B

1. A good of a Party may include materials of other countries.

Chapter C

1. "Goods of the Party" includes goods produced in a province of that Party.
2. For the purpose of Article C-02, a good may refer to an originating good or a good which benefits from tariff elimination under a TPL.
3.  

   This paragraph is not intended to prevent either Party from modifying its tariffs outside this Agreement on goods for which no tariff preference is claimed under this Agreement. This paragraph does not prevent either Party from raising a tariff back to an agreed level in accordance with the phase-out schedule in this Agreement following a unilateral reduction.

4. Paragraphs 1 and 2 of this Article are not intended to prevent either Party from maintaining or increasing a customs duty as may be authorized by any dispute settlement provision of the WTO Agreement or any agreement under the WTO Agreement.
5. Where another form of monetary security is used, it shall not be more burdensome than the bonding requirement referred to in this subparagraph. Where a Party uses a non-monetary form of security, it shall not be more burdensome than existing forms of security used by that Party.
6. This paragraph does not cover goods imported in bond, into foreign-trade zones, or in similar status, that are exported for repair and are not re-imported in bond, into foreign trade zones, or in similar status.
7. For purposes of reference only, descriptions are provided next to the corresponding tariff provision.
8. An operation or process that is part of the production or assembly of an unfinished good into a finished good is not a repair or alteration of the unfinished good; a component of a good is a good that may be subject to repair or alteration.
9. The elimination of the MFN tariff is as follows:

    

   "a" denotes elimination by November 18, 1996;

   "b" denotes elimination on the date of entry into force of this Agreement;

   "c" denotes elimination not later than January 1, 1999;

   "n.a." denotes that the Item does not exist in the Party's tariff schedule.

10. Oil Seed Seeds. The following products are mentioned in this Law, but the Price Band System is not applied to them nor have they been subject to this System: 1201.0000; 1202.1000; 1202.2000; 1203.0000; 1204.0000; 1205.0000; 1206.0000; 1207.1000; 1207.2000; 1207.3000; 1207.4000; 1207.5000; 1207.6000; 1207.9100; 1207.9200; 1207.9900.

11. Paragraphs 1 and 2 shall not be construed to modify the rights and obligations set out in Chapter Ten of the Canada-United States Free Trade Agreement.

Annex C-00-B

1. The general provisions of Chapter B (Definitions), Chapter C (Market Access), Chapter D (Rules of Origin) and Chapter F (Emergency Action) are subject to the specific rules for textiles and apparel goods set out in this Annex.
2. For purposes of Sections 3 and 4:
   (a) "increased quantities" is intended to be interpreted more broadly than the standard provided in Article F-01.1, which considers imports "in absolute terms" only. For purposes of these Sections, "increased quantities" is intended to be interpreted in the same manner as this standard is interpreted in the WTO Agreement on Textiles and Clothing; and

   (b) "serious damage" is intended as a less stringent standard than "serious injury" under Article F-01.1. The "serious damage" standard is drawn from the WTO Agreement on Textiles and Clothing. The factors to be considered in determining whether the standard has been met are set out in Section 3.2 and are also drawn from that Agreement. "Serious damage" is to be interpreted in the light of its meaning in that Agreement.

3. In paragraph 5(c), the term "equitable treatment" is intended to have the same meaning as it has in customary practice under the WTO Agreement on Textiles and Clothing.
4. For purposes of this Appendix only, references to U.S. Harmonized System Statistical Provisions are based on the 1992 Harmonized System.

Chapter D

1. The phrase "specifically describes" is intended solely to prevent Article D-01(d) from being used to qualify a part of another part, where the heading or subheading covers the final good, the part made from the other part and the other part.
2. Article D-02(4) applies to intermediate materials, and VNM in paragraphs 2 and 3 does not include:
   (i) the value of any non-originating materials used by another producer to produce an originating material that is subsequently acquired and used in the production of the good by the producer of the good, and

   (ii) the value of non-originating materials used by the producer to produce an originating self-produced material that is designated by the producer as an intermediate material pursuant to Article D-02(10).

   With respect to paragraph 4, where an originating intermediate material is subsequently used by the producer with non-originating materials (whether or not produced by the producer) to produce the good, the value of such non-originating materials shall be included in the VNM of the good.

   Under paragraph 4, with respect to any self-produced material that is not designated as an intermediate material, only the value of non-originating materials used to produce the self-produced material shall be included in the VNM of the good.

3. With respect to paragraph 8, sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs included in the value of materials used in the production of the good are not subtracted out of the net cost in the calculation under Article D-02(3).
4. With respect to paragraph 10, an intermediate material used by another producer in the production of a material that is subsequently acquired and used by the producer of the good shall not be taken into account in applying the proviso set out in that paragraph, exceptwhere two or more producers accumulate their production under Article D-04.

   With respect to paragraph 10, if a producer designates a self-produced material as an originating intermediate material and the Customs Administration of the importing Party subsequently determines that the intermediate material is not originating, the producer may rescind the designation and recalculate the value content of the good accordingly. In such a case, the producer shall retain its rights of appeal or review with regard to the determination of the origin of the intermediate material.

5. For purposes of applying paragraph 6, the determination of the component that determines the tariff classification of the good shall be based on General Rules for the Interpretation of the Harmonized System. When the component that determines the tariff classification is a blend of two or more yarns or fibres, all yarns and, where applicable, fibres, in that component are to be taken into account.
6. The rules of origin under Chapter D are based on the 1996 Harmonized System, with each Party's tariff schedule amended to incorporat the new tariff items created for rules of origin purposes.

Annex D-01

1. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
2. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
3. For definition of "average yarn number" see Annex C-00-B, Section 6.
4. If a good provided for in subheading 8301.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.
5. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
6. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
7. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
8. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
9. If the good provided for in subheading 8413.30 or 8413.60 is for use in a motor vehicle, the provisions of Article D-03 may apply.
10. If the good provided for in subheading 8414.59 or 8414.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.
11. If the good provided for in subheading 8415.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.
12. If the good provided for in subheading 8421.23, 8421.31 or 8421.39 is for use in a motor vehicle, the provisions of Article D-03 may apply.
13. If the good provided for in subheading 8425.39, 8425.42 or 8425.49 in a motor vehicle, the provisions of Article D-03 may apply.
14. If the good provided for in subheading 8431.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.
15. If the good provided for in subheading 8481.20, 8481.30 or 8481.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.
16. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
17. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
18. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
19. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
20. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
21. If the good provided for in subheading 8501.10, 8501.20, 8501.31 or 8501.32 is for use in a motor vehicle, the provisions of Article D-03 may apply.
22. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
23. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
24. If the good provided for in subheading 8512.20, 8512.30 or 8512.40 is for use in a motor vehicle, the provisions of Article D-03 may apply.
25. If the good provided for in subheading 8516.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.
26. If the good provided for in subheading 8536.41, 8536.50 or 8536.90 is for use in a motor vehicle, the provisions of Article D-03 may apply.
27. If the good provided for in subheading 8537.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.
28. If the good provided for in subheading 8539.10, 8539.21 or 8539.29 is for use in a motor vehicle, the provisions of Article D-03 may apply.
29. If the good provided for in subheading 8544.30 or 8544.41 is for use in a motor vehicle, the provisions of Article D-03 may apply.
30. If the good provided for in subheading 9017.80 is for use in a motor vehicle, the provisions of Article D-03 may apply.
31. If the good provided for in subheading 9026.10 is for use in a motor vehicle, the provisions of Article D-03 may apply.
32. If the good is for use in a motor vehicle, the provisions of Article D-03 may apply.
33. If the good provided for in subheading 9032.10, 9032.20 or 9032.89 is for use in a motor vehicle, the provisions of Article D-03 may apply.
34. If the good provided for in heading 91.04 is for use in a motor vehicle, the provisions of Article D-03 may apply.
35. If the good provided for in subheading 9401.20 is for use in a motor vehicle, the provisions of Article D-03 may apply.
36. This table identifies the new eight-digit tariff classification provisions that have been created solely for purposes of application of the rules of origin under Chapter D. In the case of Chile in particular, these new tariff provisions do not apply to the benefits provided under Law 18.480 and therefore do not grant any new or additional rights under Law 18.480.

Chapter E

1. The Uniform Regulations will clarify that "determination of origin" includes a denial of preferential tariff treatment under Article E-06(4), and that such denial is subject to review and appeal.

Chapter G

1. This Chapter covers investments existing on the date of entry into force of this Agreement as well as investments made or acquired thereafter.
2. Article G-06 does not preclude enforcement of any commitment, undertaking or requirement between private parties.

Chapter I

1. For purposes of this Article, "monopoly" means an entity, including a consortium or government agency, that in any relevant market in the territory of a Party is maintained or designated as the sole provider of public telecommunications transport networks or services.

Chapter J

1. No investor may have recourse to investor-state arbitration under the Investment Chapter for any matter arising under this Article.
2. Nothing in this Article shall be construed to prevent a monopoly from charging different prices in different geographic markets, where such differences are based on normal commercial considerations, such as taking account of supply and demand conditions in those markets.
3. A "delegation" includes a legislative grant, and a government order, directive or other act transferring to the monopoly, or authorizing the exercise by the monopoly of, governmental authority.
4. Differences in pricing between classes of customers, between affiliated and non-affiliated firms, and cross-subsidization are not in themselves inconsistent with the provision; rather, they are subject to this subparagraph when they are used as instruments of anticompetitive behaviour by the monopoly firm.

Chapter K

1. A business person seeking temporary entry under this Appendix may also perform training functions relating to the profession, including conducting seminars.
2. Accountant:
   C.P.A.: Certified Public Accountant; C.A.:Chartered Accountant; C.G.A.: Certified General Accountant; C.M.A.: Certified Management Accountant

   Dentist:

   D.D.S.: Doctor of Dental Surgery; D.M.D.: Doctor of Dental Medicine

   Lawyer:

   LL.B.: Bachelor of Laws; J.D.: Doctor of Jurisprudence (not a doctorate); LL.L: Licence en Droit (Québec universities and University of Ottawa); B.C.L.: Bachelor of Civil Law

   Librarian:

   M.L.S.: Master of Library Science; B.L.S.: Bachelor of Library Science

   Physician:

   M.D.: Medical Doctor

   Veterinarian:

   D.V.M.: Doctor of Veterinary Medicine; D.M.V.: Docteur en Médicine Vétérinaire
3. "University Title" means any document conferred by universities recognized by the Government of Chile and shall be deemed to be equivalent to the Minimum Education Requirements and Alternative Credentials for that profession. In the case of the profession of Lawyer (Abogado), the title is conferred by the Supreme Court of Chile.
4. "State/provincial licence" and "state/provincial/national licence" mean any document issued by a provincial or national government, as the case may be, or under its authority, but not by a local government, that permits a person to engage in a regulated activity or profession.
5. "Post-Secondary Diploma" means a credential issued, on completion of two or more years of post-secondary education, by an accredited academic institution in Canada or the United States of America.
6. "Post-Secondary Certificate" means a certificate issued, on completion of two or more years of post-secondary education at an academic institution:
   • in the case of Mexico, by the federal government or a state government, an academic institution recognized by the federal government or a state government, or an academic institution created by federal or state law; and
   • in the case of Chile, by an academic institution recognized by the Government of Chile.
7. A business person in this category must be seeking temporary entry to work in direct support of professionals in agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology or physics.
8. A business person in this category must be seeking temporary entry to perform in a laboratory chemical, biological, hematological, immunologic, microscopic or bacteriological tests and analyses for diagnosis, treatment or prevention of disease.