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Canada-Chile: Free Trade Agreement*

Published online by Cambridge University Press:  18 May 2017

Abstract

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Type
Treaties and Agreements
Copyright
Copyright © American Society of International Law 1997

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Footnotes

*

[Reproduced from the text provided by the Government of Canada. The Introductory Note was prepared for International Legal Materials by Daniel Daley, Associate General Counsel, Trade Law Division, Department of Foreign Affairs and International Trade, Ottawa, Canada. The views expressed are those of the author and do not necessarily reflect the views of the Government of Canada).

[The Canada-Chile Agreement on Environmental Cooperation, done at Ottawa on February 6, 1997, appears at 36 I.L.M. 1193 (1997); the Canada-Chile Agreement on Labor Cooperation, done at Ottawa on February 6, 1997, appears at 36 I.L.M. 1213 (1997); the Canada-Mexico-United States North American Free Trade Agreement, done at Washington on December 8 and 17, 1992, at Ottawa on December 11 and 17, 1992 and at Mexico City on December 14 and 17, 1992, appears at 32 I.L.M. 289 (1993) and 32 I.L.M. 605 (1993); the Marrakesh Agreement Establishing the World Trade Organization appears at 33 I.L.M. 1125 (1994).

[For additional information, contact the Department of Foreign Affairs and International Trade, Legal Affairs Bureau, Treaty Section, 125 Sussex Drive, Ottawa, Canada K1A OG2 (tel.: 613 995 3130/7707; fax: 613 992 6483), or the Ministry of Foreign Relations, Catedral 1158, Santiago, Chile (tel.: 562 679 8796; fax: 562 698 0523).]

References

1 Article 2203.

2 Article 2004.

3 The “Four Leaders’ Statement on Chile”, Miami, December 11, 1994.

4 Article P-03

5 Annex C-00-B: Textile and Apparel Goods, Section 3: Bilateral Emergency Actions (Tariff Actions). For reasons of space, the text of the CCFTA that accompanies this introductory note does not include Annex C-00-B.

6 Chapter D: Rules of Origin. For reasons of space, the text of the CCFTA that accompanies this introductory note does not include Annex D-01: Specific Rules of Origin.

7 These tariffs resulted from the conversion of Canada's former non-tariff measures in the Uruguay Round of Multilateral Trade Negotiations. Their consistency with the NAFTA was confirmed by a NAFTA Chapter Twenty dispute settlement panel In the Matter of Tariffs Applied by Canada to Certain U.S.Origin Agricultural Products in its Final Report of December 2, 1996 (NAFTA Secretariat File No. CDA-95-2008-01).

8 A letter of November 12, 1996 from the Chief Negotiator for Chile to the Chief Negotiator for Canada, incorporated into the CCFTA by Note 1 to the Customs Tariff of Chile, provides that should Chile grant better access to the Mercosur countries in the future for certain agri-food products(milling wheat, wheat flour, oilseeds and oilseed oils), Canada would automatically receive equivalent benefits. In addition, any better access granted to the United States for those products, as well as for pork, beef, potatoes, dried peas and cereal products would be provided to Canada.

9 Annex C-09.

10 Annex G-01.3(b) of the CCFTA provides: If the negotiations for Chile's accession to NAFTA have not been engaged within 15 months of the entry into force of this Agreement, the Parties shall commence negotiations with a view to entering into an agreement, based on Chapter 14 on Financial Services of the NAFTA, by no later than April 30, 1999 1

11 A limited number of exceptions have been granted to both Parties.

12 Chapter G: Investment, Section II (Settlement of Disputes between a Party and an Investor of the Other Party).

13 Article J-01(l).

14 Article J-01(2).

15 Article J-01(3).

16 Article J-02(l).

17 Article J-02(2).

18 Article M-01 and M-03

19 Article M-04(l). Paragraph (2) of the same Article states: “Exceptional circumstances may include significant changes in recent trading conditions.“ It appears that these consultation provisions might be intended to deal with the imposition by a third country of import measures that have the effect of diverting trade.

20 Chapter F: Emergency Action.

21 Chapter N: Institutional Arrangements and Dispute Settlement Procedures

22 Article N-01.

23 Article N-02.

24 Article N-03.

25 Article N-06.

26 Article N-07.

27 Ibid.

28 Article N-08.

29 See “Background”, above.

30 Annex 44.2.

31 Appendix 44B.1. For reasons of space, the text of the CCAEC that accompanies this introductory note does not include the Appendix.

32 Appendix 44B.2. For reasons of space, the text of the CCAEC that accompanies this introductory note does not include the Appendix.

33 Appendix 44B.3. For reasons of space, the text of the CCAEC that accompanies this introductory note does not include the Appendix.

34 Supra, Note 30.

35 See “Background”, above.

36 Article 8.

37 Article 9(5).

38 Article 13(3) states: “Each Party shall be responsible for the operation and costs of its National Secretariat.“

39 Article 1 and Annex 1.Although the CCALC requires each Party to enforce its existing law effectively, it does not provide directly for reform of the law itself or for common standards.

40 Article 11.

41 Articles 19 and 20.

42 Article 21.

43 Articles 25 and 26.

44 Article 35(4)(b) and Annex 35(1).

45 CCAEC, Article 33(4)(b) and Annex 33(1).

46 Annex 35(3).

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

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

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-O2(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, except where 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 identification 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 Parry's tariff schedule amended to incorporate the new tariff items created for rules of origin purposes.

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.

1 This Chapter covers investments existing on the date of entry into force of this Agreement as well as investments made or acquired thereafter

1 Article G-06 does not preclude enforcement of any commitment, undertaking or requirement between private parties.

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.

1 No investor may have recourse to investor-state arbitration under Section n (Settlement of Disputes between a Party and an Investor of the other Party) of Chapter G (Investment) 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.

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; CM.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); IX. L: Licence en Droit (Québec universities and University of Ottawa); BCL: 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 Véténnaire

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