India-Chile Framework Agreement (2005)
FRAMEWORK AGREEMENT TO PROMOTE ECONOMIC COOPERATION BETWEEN
THE REPUBLIC OF CHILE AND THE REPUBLIC OF INDIA
The Republic of Chile and the Republic of India (hereinafter
jointly referred to as the “Parties” and in the singular as a
“Party”);
Resolved to promote reciprocal trade and investment through
the establishment of clear and mutually advantageous trade
rules and the avoidance of trade and investment barriers;
Reaffirming the rights, obligations and undertakings of the
respective Parties under the World Trade Organisation (WTO)
and other multilateral, regional and bilateral agreements and
arrangements;
Recognising that regional trade agreements can contribute
towards accelerating regional and global liberalization and as
building blocks within the framework of the multilateral
trading system;
Considering that the process of economic integration includes
not only gradual and reciprocal trade liberalization but also
the strengthening of greater economic cooperation between
them;
HEREBY AGREE as follows:
ARTICLE 1
The aim of this Framework Agreement is to strengthen
relations between the Parties, to promote the expansion of
trade and to provide the conditions and mechanisms to
negotiate a Free Trade Agreement in conformity with the rules
and disciplines of the WTO and in accordance with the
provisions of Article 4 of this Framework Agreement.
ARTICLE 2
1. As a first step towards the objective referred to in
Article 1, the Parties agree to conclude in 2005 a limited
scope Preferential Trade Agreement (PTA), aimed at increasing
bilateral trade through the granting of preferential access to
their respective markets by means of mutual concessions.
2. The Parties further agree to undertake periodic
negotiations with a view to expanding the scope of the PTA.
ARTICLE 3
1. In order to achieve the aim set out in Article 2, the
Parties agree to set up a Negotiating Committee which shall be
headed by the Director General of International Economic
Affairs or his representative for the Republic of Chile and by
the Secretary of Commerce or his representative for the
Republic of India. The other members of the Negotiating
Committee shall be decided by the respective Parties.
2. The Negotiating Committee shall establish a schedule of
work for the negotiations.
3. The Negotiating Committee shall meet as often as the
Parties agree.
4. With a view to negotiate and conclude a PTA, the
Negotiating Committee shall serve as the forum to:
i. Exchange information on tariff applied by each Party;
ii. Exchange information on bilateral trade, trade with third
parties as well as on their respective trade policies;
iii. Exchange information on market access and non-tariff
measures; sanitary and phytosanitary measures, technical
regulations, rules of origin, safeguard, anti-dumping and
countervailing measures; special customs regimes and
dispute settlement, among other matters;
iv. Identify and propose measures relating to trade
facilitation;
v. Carry out other tasks as determined by the Parties.
ARTICLE 4
1. In order to achieve the aim set out in Article 1, the
Parties agree to set up a Joint Study Group (JSG) which shall
be headed by the Director General of International Economic
Affairs or his representative for the Republic of Chile and by
the Secretary of Commerce or his representative for the
Republic of India. The other members of the JSG shall be
decided by the respective Parties.
2. The objectives of the JSG shall include:
(i) To study the present status of commercial and economic
exchanges between India and Chile, and the existing
institutional framework, infrastructure and mechanisms for
bilateral trade;
(ii) To identify potential for cooperation between the
growing economies of the two countries in:
a. trade in goods;
b. trade in services;
c. investment; and
d. other areas of economic cooperation
(iii) To identify priority areas for closer cooperation;
(iv) To identify constraints, barriers and impediments to
closer cooperation, and recommend measures to remove these
constraints;
(v) To make recommendations regarding moving towards a Free
Trade Agreement (FTA) / Comprehensive Economic Cooperation
Agreement (CECA), if such an arrangement is found to be
feasible.
ARTICLE 5
In order to broaden reciprocal knowledge about trade and
investment opportunities, the Parties shall encourage trade
promotion activities such as seminars, trade missions, fairs,
symposia and exhibitions.
ARTICLE 6
The Parties shall promote the development of joint
activities aimed at the implementation of joint projects in
mutually agreed areas by means of information exchange,
training programmes and technical missions.
ARTICLE 7
The Parties agree to cooperate in promoting a closer
relationship among their relevant organisations in the areas
of customs, plant and animal health, technical standards and
regulations, food safety, mutual recognition of sanitary and
phytosanitary measures, including through equivalence
agreements in accordance with relevant international criteria.
ARTICLE 8
1. This Framework Agreement shall enter into force thirty
days after the Parties have notified formally in writing
through diplomatic channels, the completion of the internal
procedures necessary to that effect.
2. This Framework Agreement shall remain in force, unless
terminated by either Party by giving six months written notice
in advance through the diplomatic channel of its intention to
terminate it.
3. This Framework Agreement may be amended by mutual consent
of the Parties by an exchange of Notes through diplomatic
channels.
ARTICLE 9
Any dispute between the Parties arising out of the
interpretation or implementation of this Framework Agreement
shall be settled amicably through consultation or negotiation
between the Parties.
Done in the city of New Delhi on the 20th January 2005 in
two copies in the Spanish, English and Hindi languages, all
texts being equally authentic. In case of any inconsistency,
the English text shall prevail.
KAMAL NATH
MINISTER FOR COMMERCE & INDUSTRY MINISTER OF EXTERNAL AFFAIRS
For the Republic of India
IGNACIO WALKER
MINISTER OF EXTERNAL AFFAIRS
For the Republic of Chile
