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Chile

Last Verified on Thursday 15th August 2019

    • Chile

      Yes, it is. Chile has been a WTO member since its creation on 1 January 1995 and a member of GATT 1947 since 16 March 1949.

      Last verified on Thursday 15th August 2019

    • Chile

      No, Chile is not a participant in the WTO’s GPA.

      Last verified on Thursday 15th August 2019

    • Chile

      Yes, Chile ratified the TFA on 21 November 2016. The TFA brings many benefits to Chile as it contains provisions to expedite the movement, lifting and customs clearance of goods, including goods in transit. It also establishes measures for effective cooperation between customs, the private sector and other competent authorities in matters related to trade facilitation and compliance with respect to customs procedures. This agreement will certainly help to improve transparency, increase the chances of participating in global value chains and reduce corruption. 

      Last verified on Thursday 15th August 2019

    • Chile

      In general, Chile has a fixed and flat tariff structure for imports, by which almost all imported goods are subject to the same tariff rate of 6 per cent ad valorem applied to CIF value. However, due to the extensive network of free trade agreements the actual or effective tariff for imported goods on 2018 was only 0.81 per cent. This is due to the FTAs that have already entered into force granting preferential market access conditions for goods coming from the European Union, the United States and China, as well as many other economies from all around the world.

      In addition, some imported goods have a special tariff treatment, such as:

      Last verified on Thursday 15th August 2019

    • Chile

      Chile does not impose any taxes or other export duties. Exports are generally exempt from VAT, as well as domestic raw materials used to manufacture them (Decree Law 825).

      Last verified on Thursday 15th August 2019

    • Chile

      Yes, Chile renegotiated its consolidated tariff for sugar from 31.5 per cent to 98 per cent at the beginning of 2000. Due to this negotiation, Chile had to compensate its main sugar suppliers with tariff-free quotas: Argentina, Brazil and Guatemala.

      Last verified on Thursday 15th August 2019

    • Chile

      Yes, Chile has participated in the WTO Dispute Settlement Mechanism (DSU): 10 times as complainant; 13 times as defendant; and 49 times as a third interested party.

      As the most prominent instances, the following disputes can be mentioned:

      Taxes on alcoholic beverages (Pisco-Whisky case): complaint from the European Community due to Chilean tax measures that imposed a special sales tax on spirits with different rates depending on the type of product (pisco, whiskey, etc) under the "Transitional System" and the alcohol content under the "New System" – Additional Tax on Alcoholic Beverages (ILA). According to the EC, the Transitional System and the ILA involved discriminatory treatment on imported spirits violating article III: 2 of GATT 1994: National Treatment – taxes and charges. The Panel – and then the Appellate Body (AB) reports favoured EC's claims finding that the Transitional System and the ILA were inconsistent with article III: 2 of GATT 1994.

      Price Band System (PBS case): complaint from Argentina due to the Chilean price band system established by Law 18.525 (subsequently modified by Law 18.591 and Law 19.546), as well as by the regulatory standards and the complementary and/or amending provisions by which this system was applied. In addition, they also complained about certain provisional safeguard measures imposed by Chile on imports of wheat, wheat flour and edible vegetable oils. Argentina claimed that the price system was inconsistent with article II of GATT 1994 and article 4 of the Agreement on Agriculture and that the safeguard measures were inconsistent with articles 2, 3, 4, 5, 6 and 12 of the Agreement on Safeguards and paragraph 1(a) of article XIX of GATT 1994. At the end, Chile had to modify its legislation to comply with the conclusions and recommendations of the panel and the AB that considered the PBS as a non-tariff system similar to a minimum import prices mechanism (not an ordinary customs duty). This disputed included an article 21.5 of the DSU Arbitration, Panel and AB implementation reports.

      Last verified on Thursday 15th August 2019

    • Chile

      As Chile has been subject of complaints only in a few cases, we would say that our level of compliance is satisfactory. On the one hand, in the Pisco-Whisky case, Chile duly implemented the panel report making the taxation discriminatory regime consistent with the National Treatment standard. In the PBS case, on the other hand, Chile implemented deep amendments to the mechanism in terms of transparency and predictability. In practice, the PBS is not operating given the high international prices of the goods subject to the system. In some FTAs, such as the one with the US, Chile agreed not to apply the PBS. In others, like the one with MERCOSUR, it was agreed not to modify it in terms of making the mechanism more trade restrictive.

      Last verified on Thursday 15th August 2019

    • Chile

      As respondent: The PBS case; Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products (DS220); Chile – Provisional Safeguard Measure on Mixtures of Edible Oils (DS 226); Chile – Safeguard Measures on Sugar (DS 228); Chile – Safeguard Measures and Modification of Schedules Regarding Sugar (DS 230); Chile – Definitive Safeguard Measure on Imports of Fructose (DS 278); Chile – Provisional Safeguard Measure on Certain Milk Products (DS 351); Chile – Definitive Safeguard Measures on Certain Milk Products (DS 356); and Chile – Anti-Dumping Measures on Imports of Wheat Flour from Argentina (DS 393). 

      As complainant: United States – Countervailing Duty Investigation of Imports of Salmon from Chile (DS 97); United States – Continued Dumping and Subsidy Offset Act of 2000 (DS 217); Argentina – Definitive Safeguard Measure on Imports of Preserved Peaches (DS 238); Ecuador – Definitive Safeguard Measure on Imports of Medium Density Fibreboard (DS 303); and European Communities – Definitive Safeguard Measure on Salmon (DS 326).

      We do not anticipate any forthcoming WTO dispute involving Chile as complainant or respondent.

      Last verified on Thursday 15th August 2019

    • Chile

      Chile is currently a party to 28 free trade agreements in force that involve 64 economies, namely: Argentina; Australia; Austria; Belgium; Bolivia; Brazil; Brunei; Bulgaria; Canada; China; Colombia; Costa Rica; Croatia; Cuba; Cyprus; Czech Republic; Denmark; Ecuador; El Salvador; Estonia; Finland; France; Germany; Greece; Guatemala; Holland; Honduras; Hong Kong; Hungary; Iceland; India; Ireland; Italy; Japan; Latvia; Liechtenstein; Lithuania; Luxembourg; Malaysia; Malta; Mexico; New Zealand; Nicaragua; Norway; Panama; Paraguay; Peru; Poland; Portugal; Romania; Singapore; Slovakia; Slovenia; South Korea; Spain; Sweden; Switzerland; Thailand; Turkey; United Kingdom; United States; Uruguay; Venezuela; and Vietnam. 

      These include some regional agreements such as those with the EU, P4 and the Pacific Alliance. In addition, Chile is in the process of negotiating an FTA with Ecuador (currently an economic comprehensive agreement is in place); updating the FTAs with the EU and South Korea. Also, as part of the Pacific Alliance is involved in accession negotiations with some associated countries like Australia, Canada, New Zealand and Singapore.

      Last verified on Thursday 15th August 2019

    • Chile

      In January 2019, Chile became the first country in the world to negotiate an FTA with the UK as such with the aim of preserving the preferential treatment and other trade benefits concerning the British market already in place under the agreement with the EU.

      Last verified on Thursday 15th August 2019

    • Chile

      Yes, Chile is a party to the P4, the CPTPP and the Pacific Alliance. As a member of the Pacific Alliance, as mentioned before, we are in negotiations with Australia, Canada, New Zealand and Singapore for their accession. In addition, the Pacific Alliance has held several meetings with ASEAN looking for cooperative agreements.

      Last verified on Thursday 15th August 2019

    • Chile

      Yes, Chile is a member of the CPTPP. In fact, it was in Chile and under Chilean government leadership that the agreement was relaunched and signed after US withdrawal from TPP. The ratification process of the treaty has satisfactorily concluded in the lower chamber of the Chilean Congress (Camara de Diputados) and now it is in the Senate for its final approval expected to come to an end in the next months.

      Last verified on Thursday 15th August 2019

    • Chile

      There are multiple benefits of being part of the CPTPP. At the outset, more than 3,000 new products will have free access to the markets of the CPTPP countries. These new opportunities for Chilean products are mainly on agricultural, forestry, fisheries, dairy and meat sectors. The main markets that will offer these advantages are Japan, Vietnam and Canada. CPTPP also improves market access for the services sector and will also allow our goods and services suppliers to provide the government procurement markets with those members with which we did not have a GP chapter in our bilateral FTAs.

      The decision of the US on TPP withdrawal was certainly a big disappointment at the time. Nevertheless, the decision is already internalised and all the CPTPP members are successfully moving ahead with the TPP11 ratification processes. In fact, we already achieved the required quorum for putting the agreement into force. Regarding the possibility of having the US coming back, given the messages of the new administration this seems unlikely to happen in the near term. Having said that, the basis of the CPTPP is the TPP12 less the 20 most troublesome, controversial or resisted provisions that were suspended by the remaining parties in absence of the US (they primarily are the ones sought by the US and accepted by other countries in return for accessing the US market (provisions such as the ones on express shipments; investment agreements and investment authorisations; investor-state disputes arbitrations; patentable subject matters; patent term adjustment for unreasonable granting authority delays; protection of undisclosed test or other data; biologic products; term of protection for copyrights and other related rights; technological protection measures; measures to combat trade under conservation purposes and transparency and procedural fairness for pharmaceutical products and medical devices). Having the US coming back to the TPP will be a complex process given most of the CPTPP countries will be in a position to renegotiate these provisions, and certainly some of their internal approval decisions will again face an open opposition from some congressmen as well as stakeholders.

      Last verified on Thursday 15th August 2019

    • Chile

      No, Chile does not benefit from any of those systems of preferences. However, Chile maintains a similar system with respect to third countries under Law 20.690 published on 28 September 2013. With this legislation Chile voluntarily adopted and implemented the WTO commitment on duty free quota free for the so called LDC countries (least developed members). Chile unilaterally eliminated its import tariffs for every good originating from an LDC country excluding wheat, wheat flour and sugar.

      Last verified on Thursday 15th August 2019

    • Chile

      Without doubt, the trade war between China and the United States has had negative effects on our exports. In fact, in the first half of 2019, total Chilean exports declined 6 per cent compared to the same period in 2018 and copper shipments (our main export) fell 5.6 per cent. In the same period, the international price of copper fell 12 per cent. Along the same lines, our main export commodities showed significant declines during the first half of 2019, including iron (40 per cent), lithium carbonate (-11 per cent), fishmeal (-7 per cent) and cellulose (-16 per cent). Although in the short term some of our exports have benefited from this situation due to trade diversion, the prolongation of this trade war could have important negative consequences. Our exports of raw materials and commodities to China have fallen sharply since they are a relevant input in the supply chain of Chinese factories that export final goods to the United States. The United States on its part, is the main destination for our food and services exports with particular relevance for Chilean small and medium-sized enterprises. In turn, China is the main export destiny of our copper, cherries, wine and forest products.

      Last verified on Thursday 15th August 2019

    • Chile

      It should be remembered that since 1 January 2015, all bilateral trade between Chile and the United States, including steel and aluminum products, is free of tariffs because of the FTA. However, the measures announced by the United States prevail over the agreement according to article 23.2(b) based on the waiver that they involve protection of its essential security interests. With respect to Chilean exports, minor amounts exported of these products has been detected with no significant impacts so far. However, there is concern about the possible trade diversion of our competitors so both the public and the private sectors are continuously monitoring the situation. With respect to Chile’s request of being exempted from this measure, our understanding is that it was not approved. Nevertheless, United States has an available submission procedure for importers to request an exemption of tariffs on steel and aluminum.

      Last verified on Thursday 15th August 2019

    • Chile

      Different from the United States. In Chile there is no official position on the currency manipulation issue nor a legislative proposal for addressing it.

      In Chile the exchange rate is flexible because it is a buffer against external shocks. The exchange rate is freely set by the market.

      Certainly, this is an issue in the WTO for its impact on balances of payments among its members.

      Last verified on Thursday 15th August 2019

    • Chile

      Trademarks and geographical indications (GIs) are protected under Law 19.039 on Industrial Property. Trademarks are protected upon registration. Registration has an extent of 10 years and it can be renewed indefinitely. The protection of GIs and appellations of origin (AOs) is unlimited. Therefore, there is no need for renewal. 

      According to the Chilean Industrial Law, there are four key stages for a trademark application: filing, preliminary examination, publication and substantive examination.

      Source: https://www.inapi.cl/en/frequently-asked-questions/trademarks

      In the case of GIs and AOs, any natural or legal person can apply for its registration if they represent a significant group of producers, manufacturers or handcrafters, independently of their legal status. The registration procedure is equivalent to the one for trademarks. Therefore, a third party may submit oppositions, and the Industrial Property National Institute (INAPI) may make observations. 

      The Chilean Industrial Property Law has been amended several times (2005, 2007 and 2012) to comply with international standards.

      Last verified on Thursday 15th August 2019

    • Chile

      Intellectual property rights can be defended through civil and penal proceedings. Moreover, the law establishes specific means so as to prevent products infringing intellectual property legislation from entering the market or to be removed from it.

      The Industrial Property Law also contemplates the possibility of obtaining all kinds of precautionary measures in these proceedings.

      Criminal sanctions for the infringement of Intellectual property rights are established by the Chilean Criminal Code, Law No. 19.039 on Industrial Property, Law No. 17.736 on Copyright and Law No. 18.455 that regulates production, processing and trade of ethyl alcohol, alcoholic beverages and vinegars. 

      Chilean National Customs Service is the body responsible for imposing border measures  to prevent the entry or exit of products that infringe intellectual property rights under Law No. 19.912.

      Last verified on Thursday 15th August 2019

    • Chile

      No. Chile does not apply any type of restriction to foreign trade of goods or services due to balance of payments or external financial difficulties. Although restrictions on foreign trade have been applied in the past for balance-of-payments reasons, the current legal framework (and the international commitments assumed by Chile) have severely restricted that possibility.

      Last verified on Thursday 15th August 2019

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