THE SUPPLEMENTARY AGREEMENT ON TRADE IN SERVICES

the supplementary agreement on trade in services

of the free trade agreement

between

the government of the people’s republic of china

and

the government of the republic of chile



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”,

recalling article 120 of the free trade agreement between the government of the people’s republic of china and the government of the republic of chile on conclusion of the negotiations on trade in services;

striving to facilitate expansion of trade in services on a mutually advantageous basis, under conditions of transparency and progressive liberalisation, while recognising the rights of the parties to regulate services;

agree as follows:


article 1 scope and coverage

1. this supplementary agreement applies to measures adopted or maintained by a party affecting trade in services, including those related to:

(a) the production, distribution, marketing, sale, and delivery of a service;

(b) the purchase or use of, or payment for, a service;

(c) the access to and use of services, in connection with the supply of a service, which are required by the parties to be offered to the public generally; and

(d) the presence in its territory of a service supplier of the other party.

2. this supplementary agreement does not apply to:
(a) financial services;

(b) government procurement;

(c) subsidies or grants provided by a party, including government-supported loans, guarantees, and insurance;

(d) national maritime cabotage; or

(e) air services, including domestic and international air transportation services, whether scheduled or non-scheduled, and related services in support of air services, other than:

(i) specialty air services;

(ii) aircraft repair and maintenance services during which an aircraft is withdrawn from service;

(iii) the selling and marketing of air transport services;

(iv) computer reservation system (crs) services;

(v) airport operation services; and

(vi) ground handling services.


3. for the purposes of this supplementary agreement:

trade in services means the supply of a service:

(a) from the territory of a party into the territory of the other party;

(b) in the territory of a party to the service consumer of the other party;

(c) by a service supplier of a party, through commercial presence in the territory of the other party;

(d) by a service supplier of a party, through presence of natural persons of the party in the territory of the other party.

measures adopted or maintained by a party means measures adopted or maintained by:

(a) central, regional, or local governments and authorities; and

(b) non governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities.

4. this supplementary agreement does not apply to services supplied in the exercise of governmental authority.


article 2 national treatment

1. in the sectors inscribed in its schedule, and subject to any conditions and qualifications set out therein, each party shall accord to services and service suppliers of the other party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers.

2. a party may meet the requirement of paragraph 1 by according to services and service suppliers of the other party, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.

3. formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of one party compared to like services or service suppliers of the other party.


article 3 market access

1. with respect to market access through the modes of supply identified in paragraph 3 of article 1, each party shall accord services and service suppliers of the other party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its schedule referred to in article 4.

2. in sectors where market-access commitments are undertaken, the measures which a party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its schedule, are defined as:

(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;

(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;

(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or a requirement of an economic needs test;

(e) measures which restrict or require specific types of legal entities or joint ventures through which a service supplier may supply a service; and

(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.


article 4 schedules of specific commitments

1. the specific commitments undertaken by each party under articles 2 (national treatment) and 3 (market access) are set out in the schedule included in annex ii with respect to sectors where such commitments are undertaken, each schedule specifies:

(a) terms, limitations and conditions on market access;

(b) conditions and qualifications on national treatment;

(c) undertakings relating to additional commitments referred to in article 5; and

(d) where appropriate, the time-frame for implementation of such commitments and the date of entry into force of such commitments.

2. measures inconsistent with both articles 2 (national treatment) and 3 (market access) are inscribed in the column relating to article 3 (market access). in this case the inscription is considered to provide a condition or qualification to article 2 (national treatment) as well.

3. the parties agree to incorporate their current schedules of specific commitments under the gats to this supplementary agreement, except for financial services.


article 5 additional commitments

where a party undertakes specific commitments on measures affecting trade in services not subject to scheduling under articles 2 (national treatment) and 3 (market access), such commitments are inscribed in its schedule as additional commitments.


article 6 domestic regulation

1. in sectors where specific commitments are undertaken, each party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.

2. with a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, the parties shall aim to ensure that such measures are, inter<
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