1. Since the previous Review of Chile in 1997, GDP shares have, in broad terms, remained constant for the agriculture sector and most service subsectors (Table IV.1). The contribution of manufacturing and construction to total GDP has tended to decrease. Growth rates have been relatively high for mining, transport, and communications.
Table IV.1
GDP shares, 1996-02
(Per cent, based on 1996 prices)
|
|
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
GDP (1996, Ch$ billion) |
31,237 |
33,301 |
34,377 |
34,115 |
35,537 |
36,626 |
37,412 |
|
Agriculture |
4.2 |
4.0 |
4.1 |
4.1 |
4.2 |
4.2 |
4.3 |
|
Agriculture |
1.2 |
1.2 |
1.2 |
1.1 |
1.1 |
1.2 |
.. |
|
Fruits |
1.3 |
1.1 |
1.2 |
1.2 |
1.3 |
1.2 |
.. |
|
Fishing |
1.2 |
1.3 |
1.1 |
1.2 |
1.3 |
1.4 |
1.5 |
|
Mining |
6.7 |
7.0 |
7.3 |
8.2 |
8.1 |
8.4 |
8.2 |
|
Manufacturing |
17.5 |
17.2 |
16.3 |
16.3 |
16.3 |
15.9 |
16.0 |
|
Food, beverages and tobacco |
5.5 |
5.2 |
5.0 |
5.1 |
5.1 |
5.2 |
.. |
|
Textiles |
1.6 |
1.5 |
1.4 |
1.3 |
1.2 |
1.0 |
.. |
|
Chemicals and petroleum |
3.5 |
3.4 |
3.3 |
3.4 |
3.4 |
3.4 |
.. |
|
Electricity, gas and water |
2.8 |
2.9 |
2.9 |
2.8 |
2.9 |
2.8 |
2.9 |
|
Construction |
9.3 |
9.3 |
9.2 |
8.3 |
7.9 |
7.9 |
7.9 |
|
Commerce, hotels and restaurants |
11.1 |
11.2 |
11.3 |
10.8 |
10.8 |
10.7 |
10.7 |
|
Transport and communications |
6.4 |
6.7 |
6.9 |
7.0 |
7.3 |
7.7 |
7.7 |
|
Financial servicesa |
12.1 |
12.2 |
12.5 |
12.5 |
12.5 |
12.5 |
12.4 |
|
Real estate |
7.5 |
7.3 |
7.4 |
7.6 |
7.5 |
7.4 |
7.5 |
|
Private (personal) servicesb |
10.6 |
10.6 |
10.5 |
10.8 |
10.7 |
10.7 |
10.7 |
|
Education |
4.1 |
4.0 |
3.9 |
4.0 |
4.0 |
4.0 |
.. |
|
Health |
4.4 |
4.4 |
4.4 |
4.5 |
4.6 |
4.6 |
.. |
|
Other |
2.1 |
2.2 |
2.2 |
2.2 |
2.2 |
2.1 |
.. |
|
Public administration |
4.0 |
3.8 |
3.8 |
3.9 |
3.8 |
3.7 |
3.7 |
|
Other |
6.3 |
6.5 |
6.7 |
6.4 |
6.7 |
6.6 |
6.6 |
|
Bank imputations |
-3.3 |
-3.3 |
-3.3 |
-3.3 |
-3.3 |
-3.3 |
-3.3 |
|
Value-added tax |
7.4 |
7.5 |
7.6 |
7.6 |
7.6 |
7.6 |
7.6 |
|
Import duties |
2.2 |
2.3 |
2.4 |
2.1 |
2.4 |
2.3 |
2.3 |
.. Not available.
a Includes financial services, insurance, building rent and services to companies.
b Includes education, public health, and private and other services.
Note: Data for 2000 and 2001 are provisional; data for 2002 are preliminary.
Source: Central Bank of Chile.
2. Agriculture, including fisheries and forestry, retains a significant role in employment and the generation of foreign exchange, as Chile is one of the world's largest exporters of fruit, fish and fishmeal, and forestry products. Tariff protection for agricultural goods has decreased since Chile's last Review but three products (wheat, sugar, edible oils) are subject to a price band system, and a tariff rate quota is applied for sugar. There is no specific protection for agricultural products, although these have tended to be the focus of safeguard measures, and some are subject to longer tariff phase-out periods under Chile's preferential trade agreements. A number of measures are in place to increase productivity in this sector.
3. The highly productive mining sector generates more than 42% of Chile's merchandise export revenues and is the most important recipient of foreign direct investment; copper is its most important single export product. The manufacturing sector centres around the processing of agricultural, forestry, and mineral products. In principle, Chile's uniform applied MFN tariff of 6% provides neutral treatment for traded goods, although the existence of duty drawbacks and preferential trade agreements could distort the structure of protection. The use of trade-related investment measures in the automotive sector was ended in February 2003, but the production of copper products still benefits from the copper reserve programme, which gives it priority access to a limited volume of copper inputs.
4. In terms of contribution to GDP and employment, services is the most important sector in the economy. Conditions for foreign participation in Chile's services sector are far more liberal than implied by its GATS commitments. Chile ratified the Fourth and Fifth Protocols to the GATS, on Telecommunications and Financial Services, respectively. Foreign participation in Chile's services sector is substantial, most notably in the financial services and telecommunications sectors.
5. There are no major restraints on foreign direct investment other than exemptions to market access in fisheries and maritime transport, and exemptions to national treatment for radio and television broadcasting. State involvement in the economy is very limited, with the exception of the mining sector, where the State owns the world's largest copper producer. Since 1997, various seaports have been given in concession to private operators as part of Chile's privatization policy.
6. Chile's agriculture sector (excluding the processing of agricultural goods) is important in terms of production, employment, and trade. Its contribution to GDP was 4.3% in 2002, about the same as in 1996. Depending on the season, Chile's agriculture sector employs between 12.5% and 13.8% of the economically active population.
7. In 2001, Chile exported agricultural goods (WTO definition) to a total value of US$6,966 million, equivalent to some 37% of its total exports.[1] Chile is an important exporter of grapes, wine, and apples (Table IV.2). Its main export markets for agricultural products are the United States, the European Union, and Japan. In 2002, Chile imported some US$1,404 million of agricultural products, of which about 35% came from Argentina; agricultural imports are led by bovine meat and maize.
8. According to the 1997 National Agricultural Census, Chile had almost 330,000 farms, including just over 100,000 subsistence farms and 176,000 small farms. While the small-farming sector tends to specialize in vegetables, flowers, and dairy farming, Chile's 17,000 medium-sized farms and 9,500 large agricultural operations, which together control 77% of usable farmland, tend to focus on forestry, fruit growing, and cattle raising. Chile's total area used for farming, stock-breeding, and forest plantations is about 17.7 million hectares. The authorities note that, as a consequence of trade liberalization, a diversification in agricultural production has taken place over the last few years, including a shift from annual crops to fruit and vegetable production and stock-breeding (Table IV.3).
Table IV.2
Chile's main agricultural exports, 1996-02
(US$ million, f.o.b.)
|
Product |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
Grapes |
612 |
628 |
603 |
597 |
663 |
580 |
674 |
|
Wine with appellation of origin |
187 |
268 |
370 |
388 |
435 |
455 |
472 |
|
Apples |
270 |
211 |
278 |
248 |
202 |
240 |
281 |
|
Avocados |
23 |
32 |
82 |
101 |
74 |
80 |
141 |
|
Corn for seeds |
39 |
51 |
85 |
64 |
68 |
66 |
65 |
|
Kiwis |
87 |
78 |
101 |
67 |
68 |
66 |
90 |
|
Other wines |
51 |
79 |
68 |
65 |
66 |
70 |
55 |
|
Plums |
78 |
72 |
60 |
76 |
65 |
71 |
71 |
|
Wine in recipients of up to 2 litres |
46 |
57 |
61 |
56 |
64 |
62 |
70 |
|
Pears |
102 |
85 |
82 |
83 |
64 |
60 |
66 |
|
Tomato pulp and juice |
89 |
72 |
87 |
99 |
58 |
61 |
56 |
|
Raisins |
34 |
42 |
37 |
46 |
49 |
36 |
39 |
|
Apple syrup and juice |
67 |
47 |
30 |
58 |
46 |
46 |
34 |
|
Pork |
5 |
23 |
30 |
24 |
45 |
69 |
106 |
Source: Chilean authorities.
Table IV.3
Changes in the use of farmland, regions III to IX, 1988-02
|
Category |
Surface ('000 ha) |
Total variation % |
|||
|
|
1988 |
1997 |
2002a |
1997 - 02 |
1988 - 02 |
|
Annual farming |
1,075 |
834 |
810 |
-2.9 |
-24.7 |
|
Fruits and vineyards |
237 |
284 |
334 |
17.8 |
41.2 |
|
Vegetables and flowers |
70 |
80 |
126 |
57.0 |
79.0 |
|
Artificial pasturelands |
375 |
424 |
500 |
18.0 |
33.5 |
|
Natural grasslands |
3,854 |
3,235 |
3,200 |
-1.1 |
-17.0 |
|
Forest plantations |
1,182 |
1,800 |
2,100 |
16.7 |
77.7 |
|
Total |
6,792 |
6,657 |
7,070 |
6.2 |
4.1 |
a Preliminary.
Source: Data provided by the Bureau for Agricultural Policies and Studies.
9. Policies for the agriculture sector are formulated by the Ministry of Agriculture. The Ministry supports the sector both directly and through a number of dependent organizations, including the Institute for Agricultural Development (INDAP), the Office for Agricultural Research and Policy Development (ODEPA), the Agricultural and Livestock Service (SAG), and the National Forest Corporation (CONAF). The authorities indicate that the penetration of new international markets is one of the main priorities of Chile's policy for the agriculture sector.
10. Reflecting the sector's economic importance, Chile has participated actively in the ongoing WTO negotiations on agriculture. Chile has made proposals in this regard as part of the Cairns Group, of which it is a founding member. At the Doha Ministerial Conference in 2001, Chile reiterated the importance of agriculture for a new round.[2] It suggested that clear objectives should be established for the elimination of export subsidies, for a substantial reduction in trade-distorting domestic supports, and for substantial reductions in the barriers to market access.
11. Chile and other Members, proposed that, as a part of the agricultural negotiations, WTO Members should agree to discipline the activities of governmental and non-governmental enterprises and marketing boards which benefit from monopoly import or export rights, with a view to avoid distorting effects on the market.[3]
12. Moreover, Chile and other Members proposed that agricultural export credits, export credit guarantees and export insurance programmes should be brought under specific multilateral discipline under the WTO with a view to ending government subsidization of such credits.[4]
13. Since Chile's last Review in 1997, tariff protection for agricultural products has decreased in line with Chile's progressive liberalization of the trading regime. An MFN tariff of 6% applies to all agricultural goods, with the exception of edible oils, sugar, wheat, and wheat flour; for these products a price band system (described below) is in place. While Chile bound most tariff lines contained in HS Chapters 1 to 97 at a uniform rate of 25%, various agricultural products are bound at 31.5%. This list of products in Chile's Schedule includes: dairy products, wheat and wheat flour, oil-seeds and oleaginous fruit, and vegetable fats and oils. Following Article XXVIII negotiations, the bound rate for sugar was increased to 98%.
14. Under most of Chile's preferential agreements, various agricultural products are subject to longer phase-out periods and face higher average tariffs than non-agricultural goods. The average tariff rate for agricultural imports (March 2003) is 0.9% for Canada, 1.5% for Costa Rica, 1.8% for El Salvador, 1.3% for the European Union, 0.8% for MERCOSUR countries, and 0.5% for Mexico (Table III.2). Sugar, wheat, and vegetable oils are subject to particularly long phase-out periods.
15. The majority of the definitive safeguard measures imposed by Chile since the enactment of its safeguard legislation in 1999 affected agricultural goods and food products (see also Chapter III(2)(ix)); the products concerned were wheat, sugar, edible vegetable oils, fructose and fructose syrup, and powdered and liquid UHT milk. Chile's definitive safeguard measure on sugar led to consultations in the WTO requested by Colombia, later joined by Cuba, Guatemala, Nicaragua, and El Salvador.[5] Argentina requested consultations on the provisional safeguard measure on mixtures of edible oils and on the definitive safeguard measure on fructose.[6] None of the consultations, however, has as yet led to the establishment of a panel.
16. The role of the State in agricultural production and marketing is very limited. Chile has notified Comercializadora de Trigo (COTRISA) as state trading enterprise (Chapter III(4)(iii)).[7] The state does not own commercial agricultural land.
17. Chile has notified the WTO that it does not provide agricultural export subsidies.[8] According to the authorities, Chile provides domestic support for agricultural research as well as training, inspection, infrastructure and other related services; the total value of this support was about Ch$59 billion in 2000 (about US$110 million). The authorities further note that there are no price restrictions or production controls and no direct income support is given for agriculture.
18. Public investment in Chile's agriculture sector is mainly in irrigation projects, for which the Chilean Government provides annual support of about US$70 million. For the period from 2000 to 2010, the Government has plans for new irrigation projects covering an area of 300,000 hectares and for improving existing projects on 400,000 hectares.[9] The National Commission for Irrigation (CNR) formulates, coordinates, and implements national irrigation policies. The Commission is also in charge of administering Law No. 18.450 of 30 October 1985, which provides for subsidies for small-scale private irrigation projects.
19. Agricultural producers with net annual sales below 14,000 U.F., equivalent to about US$333,200, have access to the Guarantee Fund for Small Enterprises, which provides credit guarantees for investment projects and exports (Chapter III(3)(vi)). In addition, ProChile's Food and Agrobusiness Division helps agricultural companies to diversify their exports by providing information about trade opportunities and assistance in establishing contacts with foreign buyers.
20. INDAP and SAG are jointly implementing a programme to support the recovery of exhausted soil. The programme has a budget of about US$35 million and provides financial support for the purchase of fertilizers and soil conservation.
21. The Agricultural and Livestock Service (SAG) is responsible for all issues relating to animal and plant health and has also been notified as Chile's national SPS enquiry point.[10] SAG is also responsible for negotiating bilateral certification agreements. The authorities emphasize the high level of Chile's sanitary and phytosanitary standards and, most notably, that it is free of BSE and foot and mouth disease.
22. The Ministry of Agriculture instituted an agricultural insurance scheme in 2002 that allows farmers to insure against crop losses resulting from various weather phenomena. The insurance is offered by private companies, but the State contributes 50% to the premium plus a fixed sum of 1.5 U.F., up to a maximum amount of 55 U.F. per agricultural operation.[11] The budget for 2003 provides for contributions of US$2.5 million to this scheme.
23. Agricultural research and development is supported by the Foundation for Agricultural Innovation (FIA) of the Ministry of Agriculture. The Foundation's objective is to stimulate agricultural innovation; it contributes up to 70% of the cost of individual agricultural R&D projects. FIA's budget for 2003 was Ch$4.4 billion (about US$6.2 million). The Ministry of Agriculture also has its own research institute, the Institute of Agricultural Research (INIA), with a budget of Ch$7.3 billion for 2003 (US$10.2 million).
24. A number of policy measures are in place to improve the situation of small agricultural producers. The Institute for Agricultural Development (INDAP), as the main governmental institution in this field, offers services such as micro-credits, programmes for irrigation and recovery of depleted soil, support for cooperatives and general capacity-building measures. INDAP's budget for 2003 is Ch$107 billion (about US$150 million).
25. Chile is one of the world's largest exporters of fresh and processed fruits. It has about 7,800 fruit producers, farming over 211,000 hectares in 2003, up from 187,000 hectares in 1996. Production is concentrated on grapes, apples, avocados, and pears; industry output expanded to 3.3 million tonnes in 2000.
26. Besides benefiting from a favourable climate and geography, Chile's location in the southern hemisphere allows producers to target off-season northern hemisphere markets, giving exporters, especially of fresh fruits, an important competitive edge. Furthermore, about 35% of Chile's cropland is irrigated, compared with an average of 13.7% in Latin America.
27. Farming in northern Chile (Regions I to VII), which and relies on artificial irrigation is export-oriented. On the other hand, producers in southern Chile (Regions VIII to XII), where cattle farming and annual crops predominate, cater mostly for the domestic market.
28. Chile's production and exports of wine have continued to grow strongly. The area planted with wine grapes rose to 102,000 hectares in 2002, up from 54,000 hectares in 1995. Exports of wines with appellation of origin grew from US$187 million in 1996 to US$473 million in 2002; exports of other wine grew from US$46 million to US$126 million during the same period.
29. Foreign direct investment in farming and stockbreeding averaged US$30 million annually between 1996 and 2002. Foreign investors are granted the rights laid down in the Foreign Investment Statute (Chapter II(4)). The presence of overseas companies has helped to increase the sector's productivity, contributing to far-reaching modernization that has included not only production methods but also marketing and branding techniques, and has increased the industry's integration into international trading and distribution circuits. Foreigners may own agricultural land without limit.
30. Chile maintains a price band system (PBS) for edible oils, sugar, wheat, and wheat flour (Chapter III(2)(v)).
31. In June 1997, the European Union requested consultations on Chile's taxation regime for alcoholic beverages; these did not reach a mutually satisfactory solution. The WTO dispute settlement panel, which was set up subsequently, concluded that Chile acted inconsistently with Article III:2 of GATT 1994 (on national treatment) by according preferential tax treatment to pisco vis-à-vis certain other alcoholic beverages.[12] Chile's revised legislation, Law No. 19.716 of 9 February 2001, established a gradual adjustment of tax rates for various alcoholic beverages for a transitional period ending in March 2003; since then all spirits have been subject to the same specific rate of 27%.
32. A tariff quota on refined sugar introduced as a result of Chile's Article XXVIII renegotiations, entered into force in January 2002 (Chapter III(2)(vi)). The applied out-of quota rate, which is determined by the price band system, stood at 40.6% in March 2003; the in-quota rate is 0% for an annual quota of 60,000 tons. The authorities indicate that in both 2002 and 2003 the quota was filled within a few days.
33. Chile has large softwood plantations, consisting mostly of pine trees and eucalyptus. Its forest plantations cover 2.1 million hectares, equivalent to 18% of the total surface covered by forests and 2.8% of the national territory.
34. According to estimates provided by the authorities, the forestry sector contributed about 0.7% to GDP in 2001. In addition, the processing of wood and wood products contributed about 1.4%, and the production of paper accounted for another 1.9% of GDP. In 2001, Chile's exports of wood products amounted to US$968 million. Chile is the world's third-largest exporter of woodchips and also exports nearly 50% of its saw timber, panels, and softwood pulp production. Paper production is mostly consumed domestically.
35. Chile's forestry sector is regulated by the National Forest Corporation (CONAF) of the Ministry of Agriculture, in accordance with the Forest Law (Supreme Decree No. 4363) of 1931, Decree Law No. 701 of 1974, and Law No. 19.300 of 9 March 1994. In addition, the Forest Institute (INFOR) of the Ministry of Agriculture undertakes research with a view to promoting a sustainable use of Chile's forests.
36. Pursuant to Decree Law No. 701, CONAF must authorize the use of land for forest plantations following a request by an enterprise and an analysis of the territory. The Law also provides for re-afforestation requirements for the exploitation of planted forests. There are special provisions for small-scale enterprises engaging in forestry; for example they are exempt from providing re-afforestation studies and utilization plans but not from re-afforestation requirements. Law No. 19.300 lays down the principles of environmental protection in Chile. In addition, the authorities indicate that legislation is before Congress (as at June 2003), with a view to make a more sustainable use of Chile's native forests.
37. The contribution of fishing and aquaculture to GDP increased from 1.2% in 1996 to 1.5% in 2002. Compared with other sectors of the economy, foreign direct investment is relatively limited in the fishing sector, with annual FDI averaging less than US$27 million between 1996 and 2002. While the importance of aquaculture has tended to increase, the Chilean catch has decreased since the mid-1990s (Table IV.4). According to the authorities, this decline reflects overexploitation of dwindling stocks in some highly migratory species, mainly due to fleets from third countries operating near Chilean territorial waters; more stringent controls; and shrinkage in the national large-scale fleet to 370 boats from around 900 at the beginning of the 1990s.
38. Exports of fishery products increased from US$1,772 million in 1996 to US$1,959 million in 2002 (Table IV.5). Chile remains the world's second largest exporter of fishmeal and farmed salmon.
39. Aquaculture has become increasingly important; by 2001 more than 2,250 concessions had been issued for the cultivation of fish, molluscs, and seaweed. Fish cultivation (711 concessions) takes place mainly in Regions X and XI in southern Chile; salmon and trout are the most important cultivated species. The cultivation of molluscs (740 concessions) and seaweed (693 concessions) is concentrated in Region X. Based on a favourable geographic location and low-cost inputs, Chile has become the world's second-largest producer of farmed salmon after Norway, with a world market share of 20%.
Table IV.4
Catch of principle species, 1997-01
(Thousand tonnes)
|
|
1997 |
1998 |
1999 |
2000 |
2001 |
|
Fish |
5,904 |
3,362 |
5,118 |
4,485 |
4,151 |
|
Anchovies |
1,757 |
523 |
1,983 |
1,701 |
853 |
|
Mackerel |
212 |
72 |
120 |
96 |
365 |
|
Jack mackerel |
2,917 |
1,613 |
1,220 |
1,234 |
1,650 |
|
Sardine and common sardine |
481 |
346 |
1,028 |
783 |
347 |
|
Hake |
71 |
354 |
310 |
91 |
162 |
|
Mussels |
93 |
109 |
110 |
110 |
138 |
|
Shellfish |
37 |
40 |
39 |
37 |
26 |
|
Algae |
282 |
266 |
261 |
281 |
300 |
|
Others |
49 |
48 |
58 |
58 |
48 |
|
Total |
6,365 |
3,826 |
5,587 |
4,971 |
4,663 |
Source: Ministry of Economy, Sub-secretary of Fishing.
Table IV.5
Main exports of the fisheries sector, 1996-02
(US$'000)
|
Item |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
Frozen |
621,908 |
724,353 |
748,642 |
900,745 |
951,137 |
948,628 |
953,751 |
|
Fresh |
257,994 |
286,290 |
332,071 |
339,305 |
419,175 |
404,993 |
419,680 |
|
Fishmeal |
612,339 |
552,350 |
348,152 |
281,795 |
235,198 |
257,308 |
319,888 |
|
Preservatives |
112,535 |
143,045 |
121,805 |
128,271 |
133,322 |
123,033 |
115,174 |
|
Agar-agar |
44,581 |
42,483 |
24,085 |
32,371 |
39,044 |
33,891 |
32,575 |
|
Smoked |
6,807 |
10,883 |
8,979 |
13,179 |
19,594 |
19,337 |
29,198 |
|
Carragenina |
13,578 |
16,373 |
20,741 |
18,775 |
21,988 |
21,379 |
25,023 |
|
Dried algae |
25,212 |
26,863 |
26,280 |
26,297 |
21,721 |
22,013 |
22,208 |
|
Salted |
26,153 |
45,925 |
25,833 |
17,913 |
17,902 |
17,495 |
19,204 |
|
Oil |
43,623 |
14,779 |
3,495 |
14,166 |
4,271 |
2,416 |
12,873 |
|
Dehydrated |
1,016 |
1,562 |
1,393 |
2,692 |
3,364 |
4,577 |
3,332 |
|
Total |
1,771,917 |
1,872,603 |
1,673,751 |
1,784,005 |
1,874,739 |
1,861,102 |
1,959,408 |
Source: Chilean authorities.
40. In accordance with the Law on Fisheries and Aquaculture of 21 January 1992, the fisheries sector is regulated by the Sub-secretary of Fisheries, a dependency of the Ministry of Economy. The National Fisheries Service (SERNAPESCA) is responsible for issuing and enforcing technical regulations and sanitary requirements in the fisheries sector.
41. In order to attain a sustainable level of exploitation of the existing resources, the Law on Fisheries and Aquaculture establishes specific systems to limit access to fishing: (i) a general access regime; (ii) a regime for species in full exploitation; (iii) a regime for fisheries that are replenishing; and (iv) a regime for incipient fisheries. Permits to exploit species classified under the general access regime or the full exploitation regime are generally granted automatically, but may not be if, inter alia, the request is made by a factory ship. Licences to exploit species that are incipient or in the process of regeneration are granted for ten years through public bids. The licences are transferable and are specified as a share of a global quota.
42. New legislation on fisheries is before Congress (June 2003). The authorities indicate that the draft law provides for a revised quota system with quotas based on installed hold size and average historic catches.
43. The first five maritime miles off the Chilean coast, as well as the fjords and channels of the Austral zone, are reserved for small-scale fishing, defined as vessels with a length not exceeding 18 metres and a size below 50 gross tonnage. In addition, the small-scale fisheries sector has access to the Guarantee Fund for Small Enterprises and to the Fund for Small-Scale Fishing, which finances investment in equipment of up to Ch$15 million (US$21,200). The fisheries sector is excluded from the benefits of the free-trade zone regime and the public export-credit programmes.
44. Foreigners are not permitted to fish in Chilean waters or own aquaculture centres, unless they are registered as a Chilean company or are permanent residents. To register a fishing company in Chile, more than 50% of the capital must be of national origin and the investment must be approved by the Foreign Investment Committee (Chapter II(3)). However, under Article 11 of Decree Law No. 2.222 of 31 May 1978, foreign ownership in the fisheries sector is possible without capital restrictions on condition of reciprocity.
45. Pursuant to Article 80 of the Law on Fisheries and Aquaculture, concessions for enterprises engaging in aquaculture are issued by the Ministry of Defence. These concessions are transferable; any new concession or transfer thereof is published in the National Registry of Aquaculture. A concession, issued by SERNAPESCA, is required for aquaculture. The law further establishes that the aquaculture industry has exclusive rights to use certain territories (portions of water or of the ocean bed).
46. For sanitary reasons, imports of fish products require authorization by SERNAPESCA if they are to be used as inputs to produce exportables, or as bait. Chile's sanitary norms in the fisheries sector are published online.[13] SERNAPESCA recognizes all official test results and certificates provided by the country of origin.
47. Fishing vessels are among the 95 tariff lines that can be imported duty-free. A luxury tax of 15% is levied on caviar (Chapter III(2)(vii)).
48. The Fisheries Research Fund (FIP) finances research activities with a view to improving the administration of fisheries and aquaculture. The Fund is financed by public budget allocations and fees for fishing and aquaculture licences. It is administered by the Council for the Administration of Fisheries, which establishes the annual research programme. Individual research projects are announced in the Official Gazette and in a newspaper of major circulation. Research institutions that wish to receive funding must participate in a public competition. The Fund is financing 30 projects worth Ch$2 billion, equivalent to about US$2.9 million.
49. In January 1998, the United States imposed provisional anti-dumping duties on Chile's exports of fresh and chilled Atlantic salmon; the measure became definitive in July 1998 with anti-dumping margins ranging from 0.16% to 10.69%. The European Union initiated anti-dumping investigations on Chile's salmon exports in July 2002; no measure has been taken to date (mid 2003).[14]
50. In April 2000, the European Union (EU) requested consultations with the Chile regarding measures affecting the transit and importation of swordfish, claiming that under Chilean legislation EU fishing vessels were not allowed to land their swordfish in Chilean ports either for warehousing or for transhipment onto other vessels.[15] As no mutually satisfactory solution was reached, the European Union requested the establishment of a panel in November 2000.[16] In March 2001, both parties communicated to the WTO that they had reached a provisional arrangement and agreed to suspend the process for the constitution of the panel.[17] The provisional arrangement provides for a joint investigation of the issue while temporarily allowing four EU vessels access to Chilean ports for unloading or transhipping swordfish.
51. Together with other Members, Chile has submitted an issues paper to the Negotiating Group on Rules, calling for an improvement of WTO disciplines in the fisheries sector.[18] In addition, Chile and other Members have submitted a communication outlining different approaches to classification of fisheries programmes and subsidies.[19]
52. The mining sector contributed 8.2% to Chile's GDP in 2002, up from 6.7% in 1996. Employment in the sector decreased from 1.8% of the labour force to 1.3% over the same period, reflecting a strong increase in the sector's labour productivity. Foreign direct investment in mining is substantial; annual FDI flows averaged over US$1.3 billion between 1996 and 2002. Chile's mining exports amounted to US$7.9 billion in 2001, equivalent to 42.1% of total exports.
53. With a wide variety of high-quality minerals, and well over a century of mining experience, Chile has one of the largest and most-developed mining industries in the world. Chile is the world's leading supplier of copper and copper ores and concentrates, with 165 million tonnes of proved copper reserves. Chile is also an important producer of gold, manganese, molybdenum, silver, and zinc. Production of most minerals has continued to increase since Chile's last Review in 1997 (Table IV.6).
54. Chile's total copper production reached around 4.6 million tonnes in 2002 (Table IV.7). Exports of copper products in 2001 totalled US$6.5 billion, including US$4.1 billion of copper cathodes and US$2 billion of copper concentrates. Chile's main export markets for copper are the United States, Japan, China, Italy, and France.
Table IV.6
Production of selected minerals, 1996-02
(Tonnes)
|
|
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
Refined copper ('000 tonnes) |
3,116 |
3,392 |
3,687 |
4,391 |
4,602 |
4,739 |
4,581 |
|
Refined molybdenum |
17,415 |
21,339 |
25,297 |
27,309 |
33,187 |
33,492 |
29,466 |
|
Refined lead |
1,374 |
1,264 |
337 |
608 |
784 |
1,193 |
2,895 |
|
Refined zinc |
36,004 |
33,934 |
15,943 |
32,263 |
31,402 |
32,762 |
36,161 |
|
Manganese mineral |
62,887 |
63,673 |
48,931 |
40,505 |
41,716 |
31,320 |
12,195 |
|
Refined gold |
53.2 |
49.5 |
45.0 |
48.1 |
54.1 |
42.7 |
38.7 |
|
Refined silver |
1,147 |
1,091 |
1,340 |
1,380 |
1,242 |
1,349 |
1,211 |
Source: Chilean Copper Commission.
55. The State still plays a crucial role in Chile's mining sector, especially in the production of copper. State participation in production is through the National Copper Corporation (CODELCO) and the National Mining Company (ENAMI); these state-owned enterprises are the world's first and the eighth exporters of copper products. According to the authorities, there are no plans to privatize these enterprises.
Table IV.7
Production of copper, 1996-02
(Thousand tonnes, refined copper)
|
By product |
National consumptionc |
||||
|
|
Refineda |
Blister |
In bulkb |
Total |
Refined |
|
1996 |
1,748 |
243 |
1,125 |
3,116 |
91.0 |
|
1997 |
2,117 |
154 |
1,121 |
3,392 |
79.7 |
|
1998 |
2,335 |
176 |
1,176 |
3,687 |
83.6 |
|
1999 |
2,666 |
170 |
1,555 |
4,391 |
75.2 |
|
2000 |
2,668 |
164 |
1,769 |
4,602 |
83.0 |
|
2001 |
2,882 |
159 |
1,698 |
4,739 |
90.0 |
|
2002 |
2,850 |
323 |
1,408 |
4,581 |
81.5 |
a Includes electrolytic copper from Tres Estrellas and Mantos Blancos.
b Includes cement copper, concentrates, slag, and ores.
c Copper deliveries to national manufacturing industries (i.e. production of tubes, wire, etc.) for domestic consumption and manufactured exports.
Source: Central Bank of Chile, Chilean Copper Commission (COCHILCO).
56. CODELCO continues to be the world's largest single producer of copper; it is also one of the main producers of molybdenum. In 2001, CODELCO produced 1.7 million tonnes of copper (Table IV.8), equivalent to about 12.5% of world output, up from 1.2 million tonnes in 1996. A fixed 10% of the value of CODELCO's external sales is allocated to the Armed Forces, whereas CODELCO's profits are paid into the general State budget. CODELCO also has joint ventures both with national and foreign companies, in Chile and abroad, for exploration, production of electricity, production of mining equipment, and production of manufactured products such as metal wires.
Table IV.8
Production and sales of CODELCO, 1996-02
|
|
Copper productiona ('000 tonnes) |
Sales (US$ million) |
|||
|
|
|
|
Copperb |
Totalc |
|
|
1996 |
1,246 |
2,684 |
2,940 |
||
|
1997 |
1,326 |
3,097 |
3,426 |
||
|
1998 |
1,501 |
2,117 |
2,730 |
||
|
1999 |
1,615 |
2,292 |
2,944 |
||
|
2000 |
1,612 |
2,742 |
3,610 |
||
|
2001 |
1,699 |
2,585 |
3,422 |
||
|
2002 |
1,630 |
2,990 |
3,490 |
||
a Includes CODELCO's share of El Abra.
b Includes sales of copper acquired from third parties.
c Includes sales of copper acquired from third parties, and sales of by-products.
Source: Corporation Nacional del Cobre (CODELCO), Chilean Copper Commission (COCHILCO).
57. As in other sectors, foreign investors in Chile's mining industry can opt to conclude a contract with the State of Chile under Decree Law No. 600, which authorizes and protects the investment (Chapter II(4)). Under this statute, investors in the mining sector have eight years to bring in the capital; in other sectors the period is three years. The period may be extended by the Foreign Investment Committee to up to twelve years when prior exploration is required.
58. Policies for the mining sector are formulated by the Ministry of Mining. In addition, each regional government has its own Regional Ministerial Secretary for Mining. The Ministry has two main advisory bodies, the Chilean Copper Commission (COCHILCO) and the National Service of Geology and Mining (SERNAGEOMIN). COCHILCO advises the Government on mining policy, supervises and evaluates the performance of the state-owned mining enterprises, and advises the Foreign Investment Committee on approvals of investment contracts. SERNAGEOMIN is responsible for the geological survey of Chile, for updating data on mineral resources, for keeping and updating a registry of all mining concessions and the official mining land registry, and for monitoring safety conditions in the mining sector.
59. The Mining Council, founded in 1998, represents Chile's major mining companies. It comprises 17 foreign and national enterprises, including state-owned companies. The privately owned mining enterprises are united in the National Mining Society. The Mining Metallurgic Research Centre (CIMM), a private institution specialized in applied research, serves both the state-owned and private mining companies.
60. Article 19, No. 24 of the Chilean Constitution stipulates that the State is the sole owner of all the minerals in situ, independently of who owns the surface land. However, under a system of concessions, foreigners are allowed to explore for or exploit minerals, and are granted national treatment; the price of these concessions is unrelated to actual production.
61. Procedures for the granting of exploration and exploitation licences are laid down in the Constitutional Organic Law on Mining Concessions (Law No. 18.097) of 21 January 1982 and the Mining Law (Law No. 18.248) of 14 October 1983. Concessions may be granted on all mineral substances, including minerals that lie under the ocean and are accessible from land through tunnels.
62. However, concessions may not be granted for the exploitation of lithium, hydrocarbons in any state, and for any deposits located under the ocean and not accessible from land. The State can, however, extend an operating contract, which allows an individual (national or foreign) to exploit minerals for which concessions are not granted. These contracts allow exploitation of a specific mineral for a fixed period for which the State provides the necessary permits and licences; such contracts are being granted to exploit petroleum.
63. Imports of minerals are subject to the usual tariff of 6%. Mining companies are excluded from the benefits of the free-trade zone regime, the export finance programmes, and the simplified duty drawback system. However, as established by Supreme Decree No. 135 of the Ministry of Finance of 18 April 1983, mining and petroleum refineries may import raw materials at concessional duties and taxes, provided these are exported after processing. Furthermore, Law No. 19.707 of 10 January 2001 established the free-trade zone of Tocopilla, which has a system of benefits similar to the existing free-trade zones; these are confined to enterprises of the mining sector (Chapter III(4)(iv)).
64. The authorities indicate that there is no special tax treatment for the mining sector. With a view to reducing the volatility of fiscal income, the Government operates a Copper Stabilization Fund (Chapter I(2)(ii)).
65. Law No. 16,624 of 15 May 1967 established the Copper Reserve. Pursuant to this law, all mining companies with an annual output of more than 75,000 tonnes of refined, electrolytic or blister copper are obliged to supply the national manufacturing industry at prevailing international f.o.b. prices. To this end, national manufacturing enterprises submit an annual request specifying their copper demand to COCHILCO, which administers the Reserve. According to the authorities, the volume of copper administered under this scheme is about 80,000 tonnes annually. The authorities further indicated that the draft law on miscellaneous WTO-related matters provides for the abolition of the Copper Reserve (Chapter II(2)(iii)).
66. Chile's electricity sector is regulated by the National Energy Commission (CNE) in accordance with the Electricity Law (Decree with Force of Law No.1 of 1982). The CNE is responsible for policy formulation for the energy sector and for regulating electricity tariffs; its Ministerial Council is composed of the Ministers of the Economy, Mining, Finance, and Defence, and the Secretary-General of the Presidency. The Economic Load Dispatch Centre (CDEC) is an autonomous organization that groups the main generating companies in each regional grid; it coordinates the operation of the generators and transmission lines. The Superintendency of Electricity and Fuels (SEC) is in charge of setting and enforcing technical regulations in the energy sector. Market behaviour in the electricity market is supervised by Chile's competition authorities (Chapter III(4)(i)).
67. About 38% of Chile's installed power generation capacity is hydroelectric. Chile's generating capacity is around 11,146 MW; actual electricity production reached 45,483 GWh in 2002. The copper industry is by far the most important industrial energy consumer. Chile's energy sector was privatized in the 1980s; this process was completely finalized in 1998 when the State sold its controlling share of the generating company Edelaysen S.A. to a private investor.
68. Most Chilean power generation companies are organized around four separated grid systems: the Northern Grid (SING), which has about 33% of Chile's capacity; the Central Grid (SIC), with about 61% of installed capacity; and the Aysen and Magallanes Grids in the South, with less than 1% of installed capacity each. In addition, self-producers account for about 5% of generating capacity. Private-sector companies transmit electricity sold by the generating companies to power distribution companies, final customers, and other power generating companies. Chile has 13 major power distributors.
69. Under the Electricity Law, a concession is required for the construction of hydro-electric power plants and transmission lines. Antitrust resolutions establish that generators are not allowed to own transmission assets. Foreign investment is allowed in all activities, including transmission and hydroelectric generation. The authorities indicate that the main share of the generation and transmission capacity is foreign-owned.
70. There are two types of consumers in the Chilean market, classified by their power requirements. Those that require 2 MW or more are considered free consumers – about 100 large industrial and mining companies – and are eligible to negotiate power purchase agreements with generators. Consumers that require less than 2 MW are considered regulated consumers and pay a fixed tariff calculated by the CNE. Every four years, the distribution value component of the tariff is determined and node prices are updated.
71. Chile's Central Grid's dependence on hydro-power was severely tested by a 1998-99 drought, when, instead of producing their normal 80% of energy consumption, hydro-power plants produced only 60%. Prior to that crisis, the CNE had already considered increasing the share of fuel alternatives, and imports of Argentinian natural gas started in 1997. The use of natural gas in Chile's energy mix is expected to be approximately 33% by 2010.
72. In 2001, Chile imported 1,386GWh of electricity worth US$32.6 million; all of it was imported by the Northern Grid and came from an isolated Argentinian power plant. The CNE has announced that it will facilitate private investments in interconnections between the Northern and Central Grids, and, if economically feasible, an interconnection between the Central Grid and Argentina's grid. A transmission line to export power to a mining project in Bolivia is also under consideration by the private sector.
73. Expanding rural electrification has been one of the government's priorities since 1994, when it established the Rural Electrification Programme (PER), coordinated by the CNE. The original objective of the programme was to reach 75% of rural households by 2000. The CNE surpassed this goal, by achieving a 78% national coverage rate by December 2000, and has revised its target to 90% by the end of 2005.
74. A draft law on electricity is currently before Congress. The Law is expected to modernize Chile's electricity sector, addressing issues such as the regulation of transmission prices and complementary services, and the procedures for the calculation of the node price.
75. Companies engaging in the transport, storage, or sales of combustibles must register with the Superintendency of Electricity and Fuels. In 2001, Chile imported crude petroleum and derivatives for about US$2.1 billion. Chile's domestic production of petroleum is equivalent to about 3% of national demand. The import tariff on crude petroleum and petroleum products is 6%, although the actual tariff paid is much lower as most petroleum is imported from countries with which Chile has preferential trade agreements.
76. About 90% of Chile's demand for fuels is met by local refineries owned by the state-owned National Petroleum Company (ENAP). The authorities emphasized that ENAP's refineries compete with imported products and that any interested investor can enter the refining market.
77. With a view to stabilizing internal prices of petroleum products, the Government created the Fund for the Stabilization of Petrol Prices (FEPP) in 1991. The Fund operates on the basis of a price band for five petroleum products (gasoline, kerosene, diesel, fuel oil, and liquid gas). The limits of each price band are 12.5% above and below a central reference price, which is set weekly. The limits of the price band are compared to a parity price, which is based on relevant average international prices plus cost, insurance, freight, and customs duties. When the parity price exceeds the upper limit of the price band, this difference is fully compensated by disbursements of the Fund. If the parity price falls below the lower limit of the band, this difference is fully paid into the Fund. As of mid 2003, the Fund is endowed with US$10 million.
78. Some vehicle fuels are subject to specific taxes in addition to VAT. The tax on gasoline is currently equivalent to about US$171 per cubic metre (about US$0.17 per litre), and the tax on diesel is equivalent to US$28.5 per cubic metre (about US$0.28 per litre). Fuels used in the production process by the industrial sector and electricity generators are not subject to these specific taxes.
79. Although its value added in real terms has increased, the contribution of manufacturing to GDP has declined, from 17.5% in 1996 to 16.0% in 2002. The authorities indicate, however, that this percentage does not include the activities of smelting, refining, and alloying, which are imputed to the value added of the mining sector. Employment in the sector decreased from 16.3% in 1996 to 14.2% in 2002. Chile's manufacturing sector makes intensive use of local natural resources, specifically within the fishing, forestry, and mining sectors. The most important manufacturing activities include agricultural processing and packaging and production of chemical goods, paper, and steel products (Table IV.9). Annual foreign direct investment in the manufacturing sector averaged US$567 million between 1996 and 2002.
Table IV.9
Value-added in the manufacturing sector, 1996-02
(Per cent and CH$ billion)
|
Sector |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
Contribution of manufacturing to GDP |
5,468 |
5,727 |
5,595 |
5,567 |
5,788 |
5,815 |
5,979 |
|
Food, beverages and tobacco |
31.3 |
30.4 |
30.7 |
31.4 |
31.2 |
32.6 |
.. |
|
Textiles |
8.9 |
8.7 |
8.4 |
7.9 |
7.3 |
6.1 |
.. |
|
Wood and wood products |
7.8 |
8.5 |
8.3 |
8.5 |
8.8 |
8.6 |
.. |
|
Paper |
11.6 |
11.3 |
11.6 |
12.2 |
12.1 |
12.3 |
.. |
|
Chemicals and petroleum |
19.7 |
19.9 |
20.5 |
21.0 |
21.1 |
21.4 |
.. |
|
Mineral products |
5.5 |
5.5 |
5.8 |
4.9 |
5.2 |
5.3 |
.. |
|
Raw metals |
3.6 |
3.7 |
3.3 |
3.4 |
3.3 |
3.2 |
.. |
|
Steel products |
11.2 |
11.6 |
11.0 |
10.5 |
10.7 |
10.2 |
.. |
|
Others |
0.4 |
0.4 |
0.4 |
0.3 |
0.3 |
0.3 |
.. |
.. Not available.
Source: Central Bank of Chile.
80. Based on the SITC classification of goods, Chile exported manufactured goods for US$3,184 million and imported manufactured goods for US$11,804 million in 2001. The most important export destinations for Chile's manufactures include the United States (20.9%), Argentina (10.6%), Peru (9.1%), Mexico (8.9%), and Brazil (8.7%). Manufactured imports originate mainly in the United States (28.7%), Brazil (8.9%), Germany (5.5%), and Argentina (5.3%). Chile is a net importer of all major categories of manufactured goods; its most important manufactured exports are chemicals and other semi-manufactures. Imports centre around machinery, transport equipment, and chemicals.
81. The State's involvement in manufacturing activities is very limited. There are three manufacturing enterprises: ASMAR, a military shipyard, with annual sales of about US$70 million in 2002; ENAER, the national aeronautical enterprise, with annual sales of US$100 million in 2002; and FAMAE, which fabricates mainly firearms and other products related to national defence, with annual sales of US$1 million in 2002.
82. Chile has generally restricted the use of trade policy measures as instruments of industrial policy. Based on the ISIC definition, the average tariff for the manufacturing sector is 5.9% (as of March 2003). With the exception of 95 tariff lines that are duty-free, all manufactured goods are subject to an MFN tariff of 6%. In the Uruguay Round, Chile bound all its manufactured goods at a uniform rate of 25%, with the exception of six items that already had lower bound rates as a result of pre-Uruguay Round Commitments (Chapter III(2)(iv)(b)). Like other activities, the manufacturing sector is eligible for two duty drawback systems and a system of deferred payment of customs duties and tax benefits (Chapter III(3)(v)).
83. Since its last Review in 1997, Chile has taken four definitive anti-dumping actions against imports of various steel products from Russia and the Ukraine; however, none of these measures is still in place. Since its adoption of legislation on safeguard measures in 1999, two of the six definitive measures taken by Chile affected manufactured goods: socks of synthetic fibre; and various steel products (Chapter III(2)(ix)(b)).
84. In addition to the value-added tax of 18%, specific taxes apply to some manufactured products. The goods affected include jewellery, alcoholic and non-alcoholic beverages, vehicles, and tobacco products (Chapter III(2)(vii)). The taxes apply to national and foreign goods alike.
85. Since 1997, no major changes have taken place in the legal framework governing foreign direct investment in the manufacturing sector. Chile's FDI regime is generally based on the principle of non-discrimination between nationals and foreigners (Chapter II(4)).
86. Chile's automotive industry is relatively small, consisting of two minor motor vehicle assembly plants. Production, which has been falling since 1996, consists of pick-up trucks and passenger motor vehicles; 12,524 and 1,468 units were produced, respectively, in 1999, the last year for which data were available. Chile maintained trade-related investment measures in the automotive sector until February 2003 (Chapter III(3)(vii)). Since then, no special programme for the automotive industry has been in place. Other measures that apply to the automotive sector include: (i) a specific tax on vehicles applicable above a specific c.i.f. value, and (ii) an import prohibition on used automobiles (Chapter III(2)(vii) and (viii)).
87. In 2002, the service sector contributed 52.7% to GDP, up from 51.7% in 1996.[20] Employment in the sector grew faster than in others; in 2002, 62.8% of the economically active population worked in the services sector, up from 57.9% in 1996. In 2001, Chile's services exports amounted to Ch$2,342 billion and imports amounted to Ch$1,884 billion.
88. According to figures provided by the Foreign Investment Committee, annual foreign direct investment in the services sector averaged US$1,762 million between 1996 and 2002. Foreign investment in Chile's services sector is subject to the provisions of the Investment Law or of Chapter XIV of the Central Bank's Compendium of Foreign Exchange Regulations (Chapter II(4)). Sectoral exceptions to market access remain in maritime transport.
89. As a consequence of Chile's long running privatization policy, state involvement in services is limited. The State retains ownership of BancoEstado, the postal and railway services, and public television. The State also owns major seaports and airports; however, these have been increasingly given in concession to private operators. The authorities indicate that involvement of the State in any of the sectors mentioned does not in any way preclude private participation. Since Chile's last Review in 1997, the privatization process has focused on water management and seaports.
90. In the context of preparations for the 1999 Ministerial Conference, Chile, together with Australia and New Zealand, proposed that the services negotiations should improve market access significantly for developed and developing countries. To this end, the negotiations should achieve higher levels of liberalization in all services sectors, including air and maritime transport; simplification of schedules, and greater transparency in commitments; limitation of scope and number of MFN exceptions; and the development of binding rules on domestic regulation.[21]
91. In the ongoing negotiations on services, Chile has emphasized the importance of eliminating the lack of symmetry in the commitments undertaken by Members in respect of the different modes of supply recognized by the GATS.[22] It noted with concern that commitments in mode 4, i.e. the supply of services through the presence of natural persons, are primarily horizontal and these horizontal commitments are subject to many kinds of limitations. Further, they are bound for only a small subset of service personnel related to commercial presence and at higher levels, and very few commitments extend to independent movement. Chile indicated as main sectors of interest: professional services, construction and engineering, transport services, telecommunication services, distribution services, and energy services.
92. Chile's Schedule of Specific Commitments under the WTO General Agreement on Trade in Services (GATS) includes commitments in seven of the twelve categories of services (Table IV.10).[23] In general, Chile's GATS commitments tend to bind the policy framework in place at the time of the Uruguay Round negotiations. In most cases, however, the policy applied is more liberal than those commitments.
93. Chile's horizontal limitations contain a provision under which authorization for foreign investment in service industries may be contingent on a number of factors, including employment, the use of local inputs, and competition. Under the horizontal limitations, foreign investors are not allowed to transfer their capital abroad until the elapse of three years. However, in practice, the Foreign Investment Statute (Decree Law No. 600) allows for the transfer of capital one year after it has been brought to Chile, and capital brought to Chile under Chapter XIV of the Central Bank's Compendium on Foreign Exchange Regulations can be transferred at any time (Chapter II(3)).
Table IV.10
Summary of Chile's commitments under the GATSa
|
|
|
|
Market access |
National treatment |
||||||
|
|
Modes of supply: |
|
|
|
|
|
|
|
|
|
|
|
Cross-border supply |
1 |
|
|
|
1 |
|
|
|
|
|
|
Consumption abroad |
|
2 |
|
|
|
2 |
|
|
|
|
|
Commercial presence |
|
|
3 |
|
|
|
3 |
|
|
|
|
Presence of natural persons |
|
|
|
4 |
|
|
|
4 |
|
|
Commitments (■ full; ◨ partial; □ no commitment; – not appearing in Schedule) |
||||||||||
|
Horizontal limitations |
No |
No |
Yes |
Yes |
No |
No |
Yes |
Yes |
||
|
Commitments in specific sectors |
|
|
|
|
|
|
|
|
||
|
1. Business services |
|
|
|
|
|
|
|
|
||
|
A. Professional services |
|
|
|
|
|
|
|
|
||
|
Legal services: solely advice on matters of public international law and international commercial law. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
◨ |
||
|
Accounting and auditing: financial auditing, accounting review. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
◨ |
||
|
Architectural services: advisory and pre-design architectural services, architectural design. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
◨ |
||
|
Engineering services: engineering design services for industrial processes and production, engineering design services relating to sanitary works, mechanical engineering design services, electrical engineering design services, chemical and process engineering design services, environmental engineering design services. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
◨ |
||
|
Table IV.10 (cont'd) |
||||||||||
|
E. Leasing services (without operator) |
|
|
|
|
|
|
|
|
||
|
Leasing or rental services concerning private cars, leasing or rental services concerning aircraft, leasing or rental services concerning agricultural machinery and equipment, leasing or rental services concerning construction machinery and equipment. |
□ |
□ |
□ |
◨ |
□ |
□ |
■ |
◨ |
||
|
F. Other business services |
|
|
|
|
|
|
|
|
||
|
Management consulting services: general management consulting services, financial management consulting services, marketing management consulting services, production management consulting services, human resources management consulting services. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
◨ |
||
|
2. Communications services |
|
|
|
|
|
|
|
|
||
|
C. Telecommunications services. |
|
|
|
|
|
|
|
|
||
|
Telephone services, packet-switched data transmission services, circuit-switched data transmission services, telex services, telegraph services, facsimile services, private leased circuit services, domestic and international satellite services and satellite links/capacity, mobile/cellular services, personal communications services, paging services, mobile data transmission services. |
■ |
■ |
◨ |
□ |
■ |
■ |
■ |
□ |
||
|
4. Distribution services |
- |
- |
- |
- |
- |
- |
- |
- |
||
|
5. Education services |
- |
- |
- |
- |
- |
- |
- |
- |
||
|
6. Services related to the environment |
- |
- |
- |
- |
- |
- |
- |
- |
||
|
7. Financial services |
|
|
|
|
|
|
|
|
||
|
A. Insurance and reinsurance |
|
|
|
|
|
|
|
|
||
|
Sale of health insurance (excluding insurance related to social security institutions), sale of direct general insurance, credit insurance. |
□ |
□ |
■ |
◨ |
□ |
□ |
■ |
|||