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U.S. – Chile Free Trade Agreement – Setting the Standard 
 
by kmhagen October 31, 2005

Services Trade

The agreement encourages trade in services by providing open access to markets and transparency in the application of regulations and laws.  The agreement covers the cross-border supply of services, in terms of services provided by electronic means (Internet) and the travel of nationals of the two countries, as well as the right to invest and establish a presence for providing services in the country.   Provisions are made for protecting intellectual property rights, and parameters are set up for enforcing labor and environmental standards.

Transparency

Regulatory transparency includes fair and open administrative procedures, consultation with interested parties before issuing regulations, providing advance notice and comment periods for proposed changes in regulations, and publication of all regulations.

Open Access

Substantial access is provided to the entire range of services in the Chilean market, across a broad range of sectors, including computer-related services, telecommunications, construction and engineering, tourism, advertising, express delivery service, professional services, wholesaling, retailing, franchising, adult education and training, and environmental services.

E-Commerce

Chile and the U.S. agreed to protection and non-discriminatory treatment of digital products, and agreed not to impose duties on those products.   Customs duties on digital products delivered on hard media, such as DVD or CDs, will be based on the value of the physical media and not on the digital product, such as the software, text, music, or video.  The two countries also agreed to cooperate in policy issues regarding e-commerce, making this a leading-edge agreement. 

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