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

Competition

The agreement contains provisions prohibiting anti-competitive conduct and requires a competition agency to enforce that law.  State enterprises and officially-designated monopolies are prohibited from abusing of their status to harm the interests of U.S. companies or to discriminate in the sale of goods or services.

There are also provisions establishing non-discrimination by Chilean government entities in their procurement practices, including advance public notice of purchases and timely and effective bid review procedures.  These provisions cover most Chilean central government and regional government entities, airports, seaports, and municipalities.

According to anti-corruption provisions in the agreement, bribery in government procurement is specified as a criminal offense in both countries.

Customs Procedures and Rules of Origin

The agreement contains specific obligations on how customs procedures are to be carried out, with requirements for efficiency and transparency in their administration and commitments to publish customs laws and regulations on the Internet.

The rules of origin are simple but strong, and are designed to ensure that only U.S. and Chilean goods benefit from the agreement. These rules determine whether there is enough regional content in a particular product to qualify it for duty-free treatment.

Facilitating Entry of Personnel

In order to facilitate the entry of  business visitors, investors, traders, and professionals, the agreement provides for a special professional visa for Chileans to enter the U.S., and establishes that there is no limit on the number of U.S. professionals who can enter Chile each year.

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