Article 118 Amendment of the WTO Agreement

FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE'S' REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE
Preamble The Government of the People's' Republic of China ("China") and the
Government of the Republic of Chile ("Chile"), hereinafter referred to as
"the Parties"; Committed to strengthening the special bonds of friendship and cooperation
between their countries; Sharing the belief that a free trade agreement shall produce mutual
benefits to each Party and contribute to the expansion and development of
world trade under the multilateral trading system embodied in the Marrakesh
Agreement Establishing the World Trade Organization ("the WTO Agreement"); Building on their respective rights and obligations under the WTO Agreement
and other multilateral, regional and bilateral instruments of cooperation; Supporting the wider liberalization process in the Asia-Pacific Economic
Cooperation (APEC) and in particular the efforts of all APEC economies to
meet the Bogor goals of free and open trade and the actions subscribed on
the Osaka Action Agenda; Recognizing the contribution, guidance and meaningful reference of the APEC
Best Practices for Regional Trade Arrangements (RTAs), Free Trade
Agreements (FTAs), and other Preferential Arrangements; Resolved to promote reciprocal trade through the establishment of clear and
mutually advantageous trade rules and the avoidance of trade barriers; Recognizing that this Agreement should be implemented with a view toward
raising the standard of living, creating new job opportunities, and
promoting sustainable development in a manner consistent with environmental
protection and conservation; and Committed to promoting the public welfare within each of their countries; Have agreed as follows:
Chapter I Initial Provisions
Article 1 Establishment of a Free Trade Area The Parties to this Agreement, consistent with Article XXIV of the
General Agreement on Tariffs and Trade 1994, hereby establish a free trade
area. Article 2 Objectives 1. The objectives of this Agreement, as elaborated more specifically
through its principles and rules, including national treatment, most-
favored-nation (MFN) treatment, and transparency, are to: (a) encourage expansion and diversification of trade between the
Parties; (b) eliminate barriers to trade in, and facilitate the cross-border
movement of, goods between the Parties; (c) promote conditions of fair competition in the free trade area; (d) create effective procedures for the implementation and
application of this Agreement, for its joint administration, and
for the resolution of disputes; and (e) establish a framework for further bilateral, regional, and
multilateral cooperation to expand and enhance the benefits of
this Agreement. 2. The Parties shall interpret and apply the provisions of this
Agreement in the light of its objectives set out in paragraph 1 and in
accordance with customary rules of interpretation of public international
law. Article 3 Relation to Other Agreements The Parties affirm their existing rights and obligations with respect
to each other under the WTO Agreement and other agreements to which both
Parties are parties. Article 4 Extent of Obligations The Parties shall ensure that all necessary measures are taken in
order to give effect to the provisions of this Agreement in their
respective territories.
Chapter II General Definitions
Article 5 Definitions of General Application For purposes of this Agreement, unless otherwise specified: Commission means the Free Trade Commission established under Article 97; customs authorities means the competent authority, which is responsible for
the enforcement national customs legislation; days mean calendar days; existing means in effect on the date of entry into force of this Agreement; GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is
part of the WTO Agreement; goods of a Party means domestic products as these are understood in the
GATT 1994 or such goods as the Parties may agree and includes originating
goods of that Party; Harmonized System (HS) means the Harmonized Commodity Description and
Coding System, adopted by World Customs Organization; heading means the first four digits in the tariff classification number
under the Harmonized System; import customs duty means the duties which are collected in connection with
the importation of a good, but does not include: (a) charge equivalent to an internal tax imposed consistently with
Article III:2 of the GATT 1994; in respect of like, directly
competitive or substitutable goods of the Party, or in respect
of goods from which the imported good has been manufactured or
produced in whole or in part; (b) anti-dumping or countervailing duty; and
(c) fee or other charge in connection with importation commensurate
with the cost of services rendered. measure includes any law, regulation, procedure, requirement, or practice; originating means qualifying under the Rules of Origin set out in Chapter
IV; person means a natural person or a legal person, or any other entity
established in accordance with domestic law; preferential tariff means the import customs duty rate applicable under
this Agreement to an originating good; subheading means the first six digits in the tariff classification number
under the Harmonized System; territory means: (a) with respect to China, the entire customs territory of People's
Republic of China, including land, maritime and air space, and
the exclusive economic zone and the continental shelf within
which it exercises sovereign rights and jurisdiction in
accordance with international law and its domestic law; and (b) with respect to Chile, the land, maritime, and air space under
its sovereignty, and the exclusive economic zone and the
continental shelf within which it exercises sovereign rights and
jurisdiction in accordance with international law and its
domestic law. TRIPS Agreement means the Agreement on Trade-Related Aspects of
Intellectual Property Rights, which is part of the WTO Agreement; WTO means the World Trade Organization; and WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done on April 15, 1994. Chapter III
National Treatment and Market Access for Goods Article 6 Scope and Coverage Except as otherwise provided, this Chapter applies to trade in goods
between the Parties. Article 7 National Treatment 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. Article 8 Tariff Elimination 1. Except as otherwise provided in this Agreement, neither Party may
increase any existing import customs duty, or adopt any new import customs
duty, on a good of the other Party. 2. Except as otherwise provided in this Agreement, each Party shall
progressively eliminate its import customs duties on originating goods in
accordance with Annex 1. 3. If a Party reduces its applied most favored nation import
customs duty rate (except for the interim duty rate referred in the Article
4 and 9 of Regulation on Import and Export Tariff of the People's' Republic
of China) after the entry into force of this Agreement and before the end
of the tariff elimination period, the tariff elimination schedule
(Schedule) of that Party shall apply to the reduced rates. 4. On the request of either Party, the Parties shall consult to consider
accelerating the elimination of import customs duties set out in their
Schedules. An agreement between the Parties to accelerate the elimination
of an import customs duty on a good shall supersede any duty rate or
staging category determined pursuant to their Schedules for such good when
approved by each Party in accordance with their respective applicable legal
procedures and subparagraph b of paragraph 3 of Article 97.
Article 9 Administrative Fees and Formalities 1. Each Party shall ensure, in accordance with Article VIII:1 of the
GATT 1994 and its interpretive notes, that all fees and charges of whatever
character (other than import customs duties, charges equivalent to an
internal tax or other internal charge applied consistently with Article
III: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. 2. Neither Party may require consular transactions, including related
fees and charges, in connection with the importation of any good