CHAPTER 26

TRADE AND SUSTAINABLE DEVELOPMENT

Section 1
Common provisions

Article 26.1
Objectives

1. The Parties recall the Agenda 21 on Environment and Development of 1992, the
Johannesburg Plan of Implementation on Sustainable Development of 2002, the ILO
Declaration on Social Justice for a Fair Globalisation of 2008, the Outcome Document of
the UN Conference on Sustainable Development of 2012 entitled "The Future We Want"
and the UN 2030 Agenda for Sustainable Development of 2015 and its Sustainable
Development Goals.

2. The Parties recognise that sustainable development encompasses economic development,

social development and environmental protection, all three being inter-dependent and
mutually reinforcing, for the welfare of present and future generations.

3. In light of the above, the objective of this Chapter is to enhance the development of the
Parties' trade and investment relationship in a way that contributes to sustainable
development, notably its labour1 and environmental dimensions relevant to trade and
investment.

4. The Parties agree that this Chapter embodies a cooperative approach based on common
values and interests.

Article 26.2
Right to Regulate and Levels of Protection

1. The Parties recognise the right of each party to determine its sustainable development
policies and priorities, to establish its own levels of domestic labour and environmental
protection and its own labour and environmental priorities, and to adopt or modify its law
related to labour and environment and policies accordingly.
2. Such levels, law and policies, referred to in paragraph 1, shall be consistent with each
Party's commitment to the multilateral environmental agreements and multilateral labour
standards and agreements, to which a Party is a party, referred to in this Chapter.
3. Each Party shall strive to ensure that its environmental and labour laws and policies
provide for and encourage a high level of environmental and labour protection and shall

1
For the purposes of this chapter, the term "labour" means the strategic objectives of the ILO under the Decent
Work Agenda, which is expressed in the ILO 2008 Declaration on Social Justice for a Fair Globalisation.
strive to continue improving its respective levels of environmental and labour protection
provided in their laws and policies.
4. A Party shall not weaken or reduce the levels of protection afforded in their respective
domestic environmental and labour laws in order to encourage trade or investment.
5. A Party shall not waive or otherwise derogate from, or offer to waive or otherwise derogate
from, its environmental and labour laws in a manner that weakens or reduces the protection
afforded in those laws in order to encourage trade or investment.
6. A Party shall not, through a sustained or recurring course of action or inaction, fail to
effectively enforce its environment and labour laws in a manner affecting trade or investment.
7. Each Party retains the right to exercise reasonable discretion and to make bona fide
decisions with regard to the allocation of enforcement resources in accordance with priorities
for enforcement of its environmental and labour laws.
8. A Party shall not apply its environmental and labour laws and regulations in a manner
which would constitute a disguised restriction on trade or investment.

Article 26.3
Trade and Responsible Business Conduct and Supply Chain Management

1. The Parties recognise the importance of responsible management of supply chains through
responsible business conduct or corporate social responsibility practices and the role of trade
in pursuing this objective.
2. Pursuant to para 1, each Party shall:
(a) promote responsible business conduct or corporate social responsibility by
encouraging the uptake of relevant practices by businesses that are consistent with
internationally recognized principles, standards and guidelines, including sectorial
guidelines of due diligence, that have been endorsed or are supported by that Party.

(b) support the dissemination and use of relevant international instruments, that have been
endorsed or are supported by that Party, such as the OECD Guidelines for Multinational
Enterprises, the ILO Tripartite Declaration of Principles concerning Multinational
Enterprises and Social Policy, the UN Global Compact and the UN Guiding Principles on
Business and Human Rights.

3. The Parties recognise the utility of international sector-specific guidelines in the area of
corporate social responsibility / responsible business conduct and shall promote joint work in
this regard. The Parties shall also implement measures to promote the uptake of OECD Due
Diligence Guidelines.

4. The Parties recognise the importance to promote trade in goods contributing to enhanced
social conditions and environmentally sound practices, such as environmental goods and
services contributing to a resource-efficient, low-carbon economy, goods whose production is
not linked to deforestation, or goods that are the subject of voluntary sustainability assurance
schemes and mechanisms.
5. The Parties shall exchange information as well as best practices and, as appropriate,
cooperate bilaterally, regionally and in international fora on issues covered by this article.

Article 26.4
Scientific and technical information
1. When establishing or implementing measures aimed at protecting the environment or
labour conditions that may affect trade or investment, each Party shall take into account
available scientific and technical evidence, [preferably / in first instance] from recognized
technical and scientific bodies, as well as relevant international standards, guidelines or
recommendations, where they exist.
2. In cases when scientific evidence or information is insufficient or inconclusive and there is
a risk of serious environmental degradation or to occupational health and safety in its
territory, a Party may adopt measures based on the precautionary principle. Such measures
shall be subject to review when new or additional scientific information becomes available.
3. When a measure adopted in accordance with the above paragraph has an impact on trade or
investment between the Parties, a Party may request to the Party adopting the measure to
provide information indicating that the measure adopted is consistent with its own level of
protection, and may request discussion of the matter in the TSD Sub-Committee.
4. Such measures shall not be applied in a manner which would constitute a means of
arbitrary or unjustifiable discrimination or a disguised restriction on international trade.

Article 26.5
Transparency and Good Regulatory Practices
The Parties recognize the importance of application of the rules on transparency and good
regulatory practices in accordance with Chapters 28 [Transparency] and 29 [Good Regulatory
Practices], in particular the opportunities for interested persons and stakeholders to submit
views, to:
a) measures aimed at protecting the environment and labour conditions that may affect trade
or investment, and
b) trade or investment measures that may affect the protection of the environment or labour
conditions.
 Article 26.6
Public Awareness, Information, Participation and Procedural Guarantees
1. Each Party shall promote public awareness of its labour and environmental laws, including
by ensuring that its labour and environmental laws and enforcement and compliance
procedures are publicly available.
2. Each Party shall seek to accommodate requests for information regarding the Party’s
implementation of this Chapter.
3. Each Party shall make use of consultative mechanisms referred to in [Title 1. Institutional
Framework, Article X Participation of civil society, Article X bis Domestic Consultative
Groups and Article X ter Civil Society Forum], to seek views on matters related to the
implementation of this Chapter.
4. Each Party shall provide for the receipt and give due consideration to communications and
opinions by written submissions from a person of that Party on matters related to the
implementation of this Chapter in accordance with domestic procedures. Each Party shall
respond in a timely manner to such submissions in writing. It may inform the civil society
mechanism established under article XX of this Agreement of such communications as well
as the Contact Point of the other Party.
5. Pursuant to Article 26.2 Right to Regulate and Levels of Protection, each Party shall, in
accordance with its domestic law, ensure that administrative or judicial proceedings are
available to persons with a legally recognised interest in a particular matter or who maintain
that a right is infringed under its law, in order to permit action against infringements of its
environmental or labour laws, including appropriate remedies for violations of such law.
6. Each Party shall, in accordance with its domestic law, ensure that the proceedings referred
to in paragraph 5 comply with due process, are not prohibitively costly, do not entail
unreasonable time limits or unwarranted delays, provide injunctive relief if appropriate, and
are fair, equitable and transparent.

Article 26.7
Cooperation Activities
1. The Parties recognise the importance of cooperation activities on trade-related aspects of
environmental and labour policies in order to achieve the objectives of this Agreement and
implement this Chapter.
2. Cooperation activities can be developed and implemented with the participation of
international and regional organisations as well as with third countries, businesses,
employers’ and workers’ organizations, education and research organizations, other non-
governmental organizations, as appropriate.
3. Cooperation activities shall be carried out on issues and topics agreed upon by the Parties
to address the matters of common interest.
4. The Parties may cooperate on issues as specified throughout this chapter as well as, inter
alia:
(a) labour and environmental aspects of trade and sustainable development in
international fora, including in particular the WTO, the UN High-level Political
Forum for Sustainable Development, UN Environment, the ILO and MEAs;
 (b) the impact of labour and environmental law and standards on trade and investment;

(c) the impact of trade and investment law on labour and the environment;

and trade-related aspects of:

(d) initiatives on sustainable consumption and production, including those aimed at
promoting a circular economy and green growth and pollution abatement

(e) initiatives to promote environmental goods and services, including by addressing

related non-tariff barriers

5. The priorities for cooperation activities will be decided jointly by the Parties based on
areas of mutual interest and available resources.

6. The Parties may carry out activities in the cooperation areas set out in this Chapter in person or by any
technological means available to the Parties.

Section 2
Environment and Trade

Article 26.8
Objectives
1. The Parties aim to promote mutually supportive trade and environmental policies; promote
high levels of environmental protection in line with multilateral environmental agreements to
which they are a Party respectively and effective enforcement of their respective
environmental laws; and enhance their capacities to address trade-related environmental
issues, including through cooperation.

2. The Parties recognise that enhanced cooperation to protect and conserve the environment
and sustainably manage their natural resources brings benefits that can contribute to
sustainable development, strengthen their environmental governance and complement the
objectives of this Agreement.

The Parties recognize the importance of mutually supportive trade and environmental policies
and practices to improve environmental protection in the furtherance of sustainable
development.

Article 26.9
Multilateral Environmental Governance and Agreements
1. The Parties recognise the importance of the United Nations Environment Assembly
(UNEA) of the United Nations Environment Programme (UNEP). The Parties recognise the
critical role of multilateral environmental agreements in addressing global, regional, and
domestic environmental challenges. The Parties further recognise the need to enhance the
mutual supportiveness between trade and environmental policies. Accordingly, each Party
shall effectively implement the multilateral environmental agreements (MEAs) and protocols
to which it is a party.
2. The Parties recognize the right of each Party to adopt or maintain measures to further the
objectives of MEAs to which it is a party.

3. The Parties shall engage in dialogue and cooperate, as appropriate, on trade and
environmental issues of mutual interest, particularly with respect to multilateral
environmental agreements. This will include regular exchanges of information on each
Party’s initiatives regarding the ratifications of MEAs, including their protocols and
amendments.

Article 26.10
Trade and Climate Change
1. The Parties recognise the importance of multilateral environmental agreements in the area
of climate change, in particular the need to achieve the objective of the United Nations
Framework Convention on Climate Change (UNFCCC) and the purpose and goals of the
Paris Agreement adopted by the Conference of the Parties to the UNFCCC at its 21st session,
in order to address the urgent threat of climate change. Accordingly, the Parties recognise the
role of trade to achieve the goal of sustainable development and to address climate change, as
well as the importance of individual and collective efforts to address climate change impacts
through mitigation and adaptation actions.
2. Pursuant to paragraph 1, each Party shall:

(a) effectively implement the UNFCCC and the Paris Agreement adopted thereunder
including its commitments with regard to its Nationally Determined Contribution.
(b) promote the positive contribution of trade to the transition to a low greenhouse gas
emission and circular economy and to climate-resilient development, including actions on
climate change mitigation and adaptation.
(c) facilitate and promote trade and investment in goods and services of particular relevance
for climate change mitigation and adaptation, for sustainable renewable energy, and for
energy efficiency, in a manner consistent with other provisions of this Agreement.
3. Consistent with Article 26.7 [Cooperation Activities], the Parties shall cooperate as
appropriate on trade-related aspects of climate change, bilaterally, regionally and in
international fora, including in the UNFCCC, the WTO and the Montreal Protocol on
Substances that Deplete the Ozone Layer. Furthermore, the Parties may cooperate as
appropriate on these issues also in the International Maritime Organization.
4. Pursuant to paragraph 1, the Parties shall cooperate in areas such as:
(a) exchanging knowledge and experience regarding the implementation of the Paris
Agreement, as well as on initiatives to promote climate resilience, renewable energy, low
emission technologies, energy efficiency, carbon pricing, sustainable transport, sustainable
and climate-resilient infrastructure development, emissions monitoring, and nature-based
solutions; as well as explore options to cooperate in areas such as short-life climate pollutants
and soil carbon sequestration.
(b) exchanging knowledge and experience regarding an ambitious phase-out of ozone
depleting substances (ODS) and the phase-down of hydrofluorocarbons (HFCs) under the
Montreal Protocol through measures to control their production, consumption and trade, the
introduction of environmentally friendly alternatives to them, updating of safety and other
relevant standards, combating the illegal trade of substances regulated by the Protocol, as
appropriate.

Article 26.11
Trade and forests

1. The Parties recognise the importance of sustainable forest management and the role of
trade in pursuing this objective.
2. Pursuant to paragraph 1, each Party shall:
(a) implement measures to combat illegal logging and related trade, including through
cooperation activities with third countries as appropriate;
(b) encourage the conservation and sustainable management of forests;
(c) promote trade and consumption of timber and timber products, which are legally obtained
from sustainably managed forests;
(d) exchange information and, as appropriate, cooperate with the other Party on trade-related
initiatives on combatting illegal logging, sustainable forest management, deforestation and
forest degradation, forest governance and/or on the conservation of forest cover to maximise
the impact and mutual supportiveness of their respective policies of common interest.
3. Recognising that forests and their sustainable management have a key role in combatting
climate change and maintaining biodiversity, each Party shall promote initiatives addressing
deforestation, including through deforestation-free supply chains. Additionally, the Parties
shall cooperate, as appropriate and consistent with Article 26.7 [Cooperation Activities],
bilaterally, regionally and in relevant international fora, to minimise deforestation and forest
degradation worldwide.

Article 26.12
Trade and Wild Flora and Fauna
1. The Parties recognize the importance of ensuring international trade of wild fauna and
flora does not threaten their survival, as set out in the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES).
2. Pursuant to paragraph 1, each Party shall:
(a) implement effective measures to combat illegal trade in wild flora and fauna, including
through cooperation activities with third countries as appropriate;
(b) promote the long-term conservation and sustainable use of CITES listed species,
including by cooperating in the relevant CITES bodies to keep the Appendices to the CITES
up to date and promoting the inclusion of species considered at risk because of international
trade and other criteria established under CITES.
3. Consistent with Article 26.7 [Cooperation Activities], the Parties may, as appropriate,
cooperate or exchange information bilaterally, regionally and in international fora on issues
of mutual interest related to tackling illegal trade in wild flora and fauna, including through
raising awareness to reduce demand for illegal wildlife products and initiatives to enhance
cooperation on information sharing and enforcement.

Article 26.13
Trade and Biological Diversity
1. The Parties recognise the importance of conserving and sustainably using biological
diversity and the role of trade in pursuing these objectives, consistent with the Convention on
Biological Diversity (CBD), other relevant multilateral environmental agreements to which
they are a party, and the decisions adopted thereunder.
2. Pursuant to paragraph 1, each Party shall take measures to conserve biological diversity
when it is subject to pressures linked to trade and investment, including through the exchange
of information and experience, and measures to prevent the spread of invasive alien species,
recognizing that the movement of terrestrial and aquatic invasive alien species across borders
through trade-related pathways can adversely affect the environment, economic activities and
development, and human health;
3. The Parties recognise the importance of respecting, preserving and maintaining knowledge
and practices of indigenous and local communities embodying traditional lifestyles that
contribute to the conservation and sustainable use of biological diversity, and the role of
international trade therein.
4. The Parties recognise the importance of facilitating access to genetic resources and of
promoting the fair and equitable sharing of benefits arising from the use of genetic resources,
consistent with their respective domestic measures and each Party’s international obligations.
5. The Parties also recognise the importance of public participation and consultation, in
accordance with their respective law or policy, in the development and implementation of
measures concerning the conservation and sustainable use of biological diversity.
6. Consistent with Article 26.7 [Cooperation Activities], the Parties may, as appropriate,
promote, cooperate or exchange information bilaterally, regionally and in international fora
on trade-related aspects of biological diversity policies and measures of mutual interest, such
as:
(a) initiatives and good practices concerning trade in natural resource-based products
obtained through a sustainable use of biological resources and contributing to the
conservation of biodiversity;
(b) the conservation and sustainable use of biological diversity, the protection, restoration and
valuation of ecosystems and their services and related economic instruments;
(c) access to genetic resources and the fair and equitable sharing of benefits from their
utilisation.
 Article 26.14
Trade and Sustainable Management of Fisheries and Aquaculture
1. The Parties recognise the importance of conserving and sustainably managing marine
biological resources and marine ecosystems, and the role of trade in pursuing these
objectives.

2. While developing and implementing conservation and management measures, the Parties
shall take into consideration social, trade, developmental and environmental concerns and
the importance of artisanal or small scale fisheries to the livelihoods of local fishing
communities.

3. The Parties acknowledge that illegal, unreported and unregulated (IUU) fishing2 can have
significant negative impacts on fishery stocks, sustainability of trade in fisheries products,
development and the environment and confirm the need for action to address the
problems of overfishing and unsustainable utilization of fisheries resources.

4. Pursuant to paragraphs 1 to 3, each Party shall:

4.1 implement and act consistent with the principles of the UN Convention on the Law of the
Sea, the UN Agreement on the Conservation and Management of Straddling Fish Stocks
and Highly Migratory Fish Stocks, the FAO Agreement to Promote Compliance with
International Conservation and Management Measures by Fishing Vessels on the High
Seas, the FAO Code of Conduct for Responsible Fisheries, the FAO Agreement on Port
State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated
(IUU) fishing;

4.2 participate in the FAO’s initiative on the Global Record of Fishing Vessels, Refrigerated
Transport Vessels and Supply Vessels;

4.3 seek to operate a fisheries management system that shall be based on the best scientific
evidence available and on internationally recognized best practices for fisheries
management and conservation as reflected in the relevant provisions of international
instruments aimed at ensuring the sustainable use and conservation of marine species3 and
that is designed, inter alia, to:
(a) prevent overfishing and overcapacity;
(b) reduce bycatch of non-target species; and
(c) promote the recovery of overfished stocks for all marine fisheries;

2
The term “illegal, unreported and unregulated fishing” is to be understood to have the same meaning as
paragraph 3 of the International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and
Unregulated Fishing (2001 IUU Fishing Plan of Action) of the UN Food and Agricultural Organisation (FAO),
adopted in Rome, 2001.
3
These instruments include, among others, and as they may apply, UNCLOS, the United Nations Agreement for
the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of December
1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks,
done at New York, December 4, 1995 (UN Fish Stocks Agreement), the FAO Code of Conduct for Responsible
Fisheries, the 1993 FAO Agreement to Promote Compliance with International Conservation and Management
Measures by Fishing Vessels on the High Seas, (Compliance Agreement) done at Rome, November 24, 1993,
the 2001 IUU Fishing Plan of Action, and the 2009 FAO Agreement on Port State Measures to prevent, deter
and eliminate illegal, unreported and unregulated fishing, done at Rome, November 22, 2009.
 (d) promote fisheries management with an ecosystem approach, including through
cooperation among the Parties.
4.4 in support of efforts to combat illegal, unreported and unregulated (IUU) fishing practices
and to help deter trade in products from species harvested from those practices:
(a) implement effective measures to combat IUU fishing.
(b) ensure the use of monitoring, control, surveillance, compliance and enforcement
systems, to:
(i) prevent and deter vessels that are flying its flag and its nationals from
engaging in IUU fishing activities according to its international obligations
and its law; and
(ii) address the transhipment at sea of fish or fish products to deter and avoid
IUU fishing activities;
(c) implement port State measures;
(d) implement measures to prevent that IUU fish and fish products from entering in
each Party’s supply chains and to cooperate to this end, including by facilitating the
exchange of information;
4.5 Participate actively in the work of the Regional Fisheries Management Organisations
(RFMOs) to which they are members, observers, or cooperating non-contracting parties, with
the aim of achieving good fisheries governance and sustainable fisheries, such as through the
promotion of scientific research and the adoption of conservation measures based on best
scientific evidence available the strengthening of compliance mechanisms, the undertaking of
periodical performance reviews and the adoption of effective control, monitoring and
enforcement of the RFMOs' management measures and, where applicable, the adoption and
implementation of Catch Documentation or Certification Schemes and port state measures;
4.6 Strive to act consistently with relevant conservation and management measures adopted
by Regional Fisheries Management Organizations of which it is not a member so as not to
undermine those measures and endeavour not to undermine catch or trade documentation
schemes operated by Regional Fisheries Management Organizations or Arrangements of
which it is not a member;
4.7 Promote the development of sustainable and responsible aquaculture, taking into account
its economic, social and environmental aspects, according to the implementation of the
objectives and principles contained in the FAO Code of Conduct for Responsible Fisheries.
5. The Parties shall cooperate, as appropriate and consistent with Article 26.7 [Cooperation
Activities], bilaterally and within RFMOs with the aim of promoting sustainable fishing
practices and trade in fish products from sustainably managed fisheries. Additionally, the
Parties may cooperate to exchange knowledge and good practices to support the
implementation of this Article.
 Section 3
Labour and Trade

Article 26.15
Labour Provisions Objectives

1. The Parties recognise that trade and investment provides opportunities for job creation
and decent work, including for young people, with terms and conditions of employment
that adhere to the principles in International Labor Organization Declaration of
Fundamental Principles and Rights at Work and its Follow-Up (1998) and the ILO
Declaration on Social Justice for a Fair Globalization of 2008;

2. The Parties aim to ensure high levels of labour protection in line with international labour
standards they adhere to and to promote mutually supportive trade and labour policies
with a view to improve the working conditions and quality of work life amongst
employees. They will strive to improve the development and management of human
capital for enhanced employability, business excellence, and greater productivity for the
benefit of both the workers and enterprise. Accordingly, the Parties endeavor to provide
opportunities for young people to develop skills to successfully access and remain in the
labour market.

3. The Parties aim to cooperate on trade-related labour issues of mutual interest in order to
strengthen the broader relationship between the Parties.

Article 26.16
Multilateral Labour Standards and Agreements

1. The Parties affirm their commitment to promote the development of international trade in a
way that is conducive to decent work for all, in particular women, young people and persons
with disabilities, in line with their respective obligations under the ILO, including those
stated in ILO Declarations of 1998 and 2008.

2. Recalling the ILO Declaration on Social Justice for a Fair Globalisation of 2008, the
Parties note that the violation of fundamental principles and rights at work cannot be
invoked or otherwise used as a legitimate comparative advantage and that labour
standards should not be used for protectionist trade purposes.

3. Each Party shall effectively implement the ILO Conventions ratified by Chile and the
Member States of the European Union respectively.

4. In accordance with the ILO Constitution and the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up, adopted by the International Labour
Conference at its 86th Session in 1998, each Party shall respect, promote and effectively
implement the internationally recognised core labour standards, as defined in the fundamental
ILO Conventions, which are:

a) freedom of association and the effective recognition of the right to collective

bargaining;
b) the elimination of all forms of forced or compulsory labour;
c) the effective abolition of child labour and a prohibition on the worst forms of child
labour; and
d) the elimination of discrimination in respect of employment and occupation.

5. The Parties shall regularly exchange information on their respective progress with regard
to the ratification of ILO Conventions or protocols that are classified as up-to-date by the ILO
and to which they are not yet party.

6. Each Party shall promote the Decent Work Agenda as set out in the Declaration on
Social Justice for a Fair Globalization of 2008 adopted by the International Labour
Conference at its 97th Session, in particular with regard to:

a) decent working conditions for all, with regard to, inter alia, wages and earnings,
working hours, other conditions of work and social protection;

b) social dialogue on labour matters among workers and employers and their
respective organizations, and with relevant government authorities.

7. Consistent with its commitments under the ILO, each Party shall:

a) adopt and implement measures and policies regarding occupational health and safety;

b) maintain labour inspection system, in accordance with the relevant ILO standards on
labour inspection.

Article 26.17
Forced or Compulsory Labour

1. Recalling that among the objectives of the Agenda 2030 is the elimination of forced
labour, the Parties underline the importance of ratification and the effective implementation
of the 2014 Protocol to the Forced Labour Convention.

2. The Parties recognize the goal of eliminating all forms of forced or compulsory labour,
including forced or compulsory child labour.

3. Consequently, the Parties agree to identify opportunities for cooperation sharing

information, experiences and good practices related to this matter.

Article 26.18
Cooperation on trade and labour issues

1. Consistent with Article 26.7 [Cooperation Activities], the Parties shall consult and
cooperate, as appropriate, bilaterally and in the context of the ILO, on trade-related labour
issues of mutual interest, including, but not limited to:
 (a) job creation and the promotion of productive, quality employment, including
policies to generate job-rich growth and promote sustainable enterprises and
entrepreneurship;
(b) promotion of improvements in business and labour productivity, particularly in
respect of SMEs;
(c) human capital development, access to labour market and the enhancement of
employability, in particular of young people, including through lifelong learning and
vocational training, continuous education, training and the development and
upgrading of skills, including in emerging and environmental industries;
(d) work-life balance and innovative workplace practices to enhance workers’ well-
being;
(e) promotion of the awareness of the ILO Decent Work Agenda, including on the
inter-linkages between trade and full and productive employment, labour market
adjustment, core labour standards, decent work in global supply chains, social
protection and social inclusion, social dialogue and gender equality;
(f) promotion of decent quality jobs through trade, including the safety and health at
work of pregnant workers and workers who have recently given birth;
(g) occupational safety and health and labour inspection, for example, improving
compliance and enforcement mechanisms;
(h) addressing the challenges and opportunities of a diverse, multigenerational
workforce, including:
(i) promotion of equality and elimination of discrimination in respect of
employment and occupation;
(ii) protection of vulnerable workers;
(i) improving labour relations, for example, best practice in alternative dispute
resolution and tripartite consultation;
(j) the implementation of fundamental, priority and other up-to-date ILO Conventions,
as well as the ILO Tripartite Declaration of Principles Concerning Multinational
Enterprises and Social Policies, and the United Nation Guiding Principles on Business
and Human Rights;
(k) labour statistics.

Section 4
Institutional arrangements

Article 26.19
Sub-Committee on Trade and Sustainable Development and Contact Points

1. The Sub-Committee on Trade and Sustainable Development established by Article X.4

(Sub-Committees of part III of this Agreement) shall meet within a year of the date of entry
into force of this Agreement, unless otherwise agreed by the Parties, and thereafter as
necessary in accordance with Article X.X (Sub-Committees and Other Bodies) of this
Agreement. Meetings may be conducted in person or by any technological means available to
the Parties.
For Chile, the Sub-Committee shall comprise senior officials or other level from the
institutions responsible for trade, labour, environment and gender issues.
2. The Sub-Committee shall have specific sessions for environment and labour matters 4,
respectively, as well as cross-cutting issues related to trade and sustainable development.

3. The functions of the Sub-Committee are to:

(a) facilitate, monitor and review the implementation of this Chapter;
(b) determine, organize, oversee and assess the cooperation activities of this Chapter,
including exchange of information and experience on areas of mutual interest;
(c) report and make recommendations to the Trade Committee on any matter related
to this Chapter, including with regard to topics for discussion with … [the civil
society mechanisms] referred to in Article … of Chapter … ;
(d) carry out the tasks referred to in Articles 26.21 [Consultations] and 26.22 [Panel of
Experts];
(e) coordinate with other Sub-Committees established under this Agreement as
appropriate, including the efforts referred to in Article 27.4, paragraph 8 of the chapter
on Trade and Gender Equality;

(f) carry out any other functions as the Parties may agree.

4. The Sub-Committee, as mutually agreed, may consult or seek the advice of relevant
stakeholders or experts over matters relating to the implementation of this Chapter.

All recommendations of the Sub-Committee shall be adopted by consensus.

5. The Sub-Committee shall publish a report, made by consensus, on its meeting after each of
its meetings.
6. Each Party shall designate a contact point within its administration to facilitate
communication and coordination between the Parties on any matter relating to the
implementation of this Chapter. In the case of Chile, specific contact points for labour,
environmental [and gender] matters shall be within its Undersecretariat of International
Economic Relations of the Ministry of Foreign Affairs or its successor. Each Party shall
promptly notify the other Party its contact point (s) and provide their contact information.
7. The contact point(s) shall:
(a) facilitate regular communication and coordination between the Parties,
(b) assist the Sub-Committee;
(c) communicate with its domestic civil society, as appropriate;
(d) work together, including with other appropriate bodies of their administrations, to
develop and implement cooperative activities.
4
It could be done through consecutive sessions within the Trade and Sustainable Development Sub-
Committee or as an isolated session.
 Article 26.20
Dispute resolution

1. The Parties shall make all possible efforts through dialogue, consultation, exchange of
information and cooperation to address any disagreement between the Parties regarding the
interpretation or application of this Chapter.

2. In case of a disagreement between the Parties regarding the interpretation or application of

this Chapter, the Parties shall have recourse exclusively to the dispute resolution procedures
established under Articles 26.21 [Consultations] and 26.22 [Panel of Experts]. [The
provisions of this Chapter shall not be subject to the dispute resolution procedures under
Chapter [Dispute Settlement]].

Article 26.21
Consultations
1. A Party (requesting Party) may, at any time, request consultations with the other Party
(responding Party) regarding any matter arising in regard to the interpretation or application
of this Chapter by delivering a written request to the responding Party’s contact point. The
request shall set out the reasons for requesting consultations, including a sufficiently specific
description of the matter at issue and its relation to the provisions of this Chapter.
2. The responding Party shall, unless agreed otherwise with the requesting Party, reply in
writing no later than ten days after the date of its receipt.
3. The Parties shall begin, unless they agree otherwise, consultations no later than 30 days
after the date of receipt by the responding Party of the request.
4. The consultations may be held in person or by any technological means available to the
Parties. If consultations are held in person, they shall be held in the territory of the responding
Party, unless the Parties agree otherwise.
5. In the consultations:
a. the Parties shall provide sufficient information to enable a full examination of the matter;
and
b. the Parties shall treat any information exchanged in the course of the consultations
confidentially.
6. The Parties shall enter into consultations with the aim of reaching a mutually satisfactory
resolution of the matter, taking into account opportunities for cooperation related to the
matter. In matters related to the multilateral agreements referred to in this Chapter, the Parties
shall consider information from the ILO or relevant bodies established under those
agreements. Where relevant, the Parties may agree to seek advice from such organisations or
bodies, or any other expert or body they deem appropriate to assist them in the consultations.
7. If the Parties are unable to resolve the matter in accordance with paragraphs 3 to 6 within
60 days from the request for consultations pursuant to paragraph 1, each Party may, by
delivering a written request to the contact point of the other Party, request that the Sub-
Committee on Trade and Sustainable Development be convened to consider the matter. The
Sub-Committee on Trade and Sustainable Development shall convene promptly and
endeavour to agree on a resolution of the matter.
8. Each Party or the Sub-Committee on Trade and Sustainable Development seized pursuant
to Article 22.7 may, if appropriate, seek the views of the … [domestic civil society bodies set
up under the Agreement] referred to in Article … of Chapter … or other expert advice.
9. If the Parties are able to resolve the matter, they shall document any outcome including, if
appropriate, specific steps and timelines agreed upon. The Parties shall make the outcome
available to the public, unless they agree otherwise.

Article 26.22
Panel of Experts
1. If, within 60 days of the delivery of a written request under Article 26.21 paragraph 7 for
consideration of a matter by the Sub-Committee on Trade and Sustainable Development or, if
no such request is made, within 120 days of the delivery of a written request for consultations
under Article 26.21 paragraph 1, no mutually satisfactory resolution has been reached, a Party
may request the establishment of a Panel of Experts to examine the matter.
Any such request shall be made in writing to the contact point of the other Party established
in accordance with Article 26.19 paragraph 7. The request shall identify the reasons for
requesting the establishment of a Panel of Experts, including a description of the matter at
issue, and explain how that matter constitutes a breach of the covered provision(s) of this
Chapter that it considers applicable.
2. Except as otherwise provided for in this Article, Articles X.5 [Establishment of a panel],
X.8 [Functions of the Panel], paragraph 6 of X.11 [Interim and Panel Report]¸ paragraph 1
of X.13 [Compliance Measures], X.14 [Reasonable Period of Time], X.18 [Replacement of
Panellists], paragraph 2 of X.19 [Rules of Procedure], X.20 [Suspension and Termination],
[X.21 [Receipt of information],] X.23 (Reports and Decisions of the Panel), X.32 [Mutually
Agreed Solution], X.33 [Time Periods], X.34 [Costs], X.35 [Annexes] of Chapter X [Dispute
Settlement], as well as the Rules of Procedure in Annex … and the Code of Conduct in
Annex … to Chapter … (Dispute Settlement], shall apply mutatis mutandis.
3. The TSD Sub-Committee shall, at its first meeting after the entry into force of this
Agreement, recommend to the Trade Committee the establishment of at least 15 individuals
who are willing and able to serve on the Panel of Experts. The list shall be composed of three
sub-lists: one sub-list for each Party and one sub-list of individuals that are not nationals of
either Party and who may serve as chairperson to the Panel of Experts. Each Party shall
propose at least five individuals for its sub-list. The Parties shall also select at least five
individuals for the list of chairpersons. The TSD Sub-Committee shall ensure that the list is
kept up to date and that the number of experts is maintained at least at 15 individuals.
4. The individuals referred to in paragraph 3 shall have specialised knowledge of or expertise
in labour or environmental law, issues addressed in this Chapter, or the resolution of disputes
arising under international agreements. They shall be independent, serve in their individual
capacities and not take instructions from any organisation or government with regard to
issues related to the disagreement, or be affiliated with the government of any Party, and shall
comply with Annex … [Code of Conduct] to Chapter … [Dispute Settlement].
5. If the Panel of Experts is composed according to the procedures set out in paragraphs 3 and
4 of Article X.5 [composition of arbitration panel] of Chapter … [Dispute Settlement], the
experts shall be selected from the relevant individuals on the sub-lists referred to in paragraph
3 of this Article.
6. Unless the Parties agree otherwise within [five] days from the date of establishment of the
Panel of Experts, as defined in paragraph 5 of Article X.5 [establishment of the arbitration
panel] [Dispute Settlement], the terms of reference shall be:
"to examine, in the light of the relevant provisions of the Trade and Sustainable Development
Chapter of the EU-Chile Association Agreement, the matter referred to in the request for the
establishment of the Panel of Experts, and to issue a report, in accordance with Article 22
[Panel of Experts] of Chapter 26 [Trade and Sustainable Development], with its findings and
recommendations for the resolution of the matter".
7. With regard to matters related to multilateral agreements referred to in this Chapter, the
panel of experts should seek information from the ILO or relevant bodies established under
those agreements, including any pertinent available interpretative guidance, findings or
decisions adopted by the ILO and those bodies. Any such information shall be provided to
both Parties for their comments.
8. The Panel of Experts shall interpret the provisions of this Chapter in accordance with the
customary rules of interpretation of public international law, including those codified in the
1969 Vienna Convention on the Law of Treaties.
9. The panel of experts shall issue to the Parties an interim report and a final report setting out
the findings of facts, the applicability of the relevant provisions and the rationale behind any
findings, conclusions and the recommendations it makes.
10. The panel of experts shall deliver to the Parties the interim report within 100 days after
the date of establishment of the panel of experts. When the panel of experts considers that
this deadline cannot be met, the chairperson of the panel of experts shall notify the Parties in
writing, stating the reasons for the delay and the date on which the panel of experts plans to
deliver its interim report. The time limits set out in this paragraph may be extended by mutual
agreement of the Parties.
11. Each Party may deliver to the panel of experts a reasoned request to review particular
aspects of the interim report within 25 days of its delivery. A Party may comment on the
other Party's request within 15 days of the delivery of the request.
12. After considering those comments, the panel of experts shall prepare the final report. If no
request to review particular aspects of the interim report is delivered within the time period
referred to in paragraph 11, the interim report shall become the final report of the panel of
experts.
13. The panel of experts shall deliver its final report to the Parties within 175 days of the date
of establishment of the panel of experts. When the panel of experts considers that this time
limit cannot be met, its chairperson shall notify the Parties in writing, stating the reasons for
the delay and the date on which the panel of experts plans to deliver its final report. The time
limits set out in this paragraph may be extended by mutual agreement of the Parties.
14. The final report shall include a discussion of any written request by the Parties on the
interim report and clearly address the comments of the Parties.
15. The Parties shall make the final report available to the public within 15 days of its
delivery by the panel of experts.
16. If the Panel of Experts finds in the final report that a Party has not conformed with its
obligations under this Chapter, the Parties shall discuss appropriate measures to be
implemented taking into account the report and recommendations of the Panel of Experts.
The responding Party shall inform its … [domestic civil society mechanism set up under the
Agreement] referred to in Article … of Chapter … and the other Party of its decisions on any
actions or measures to be implemented no later than three months after the report has been
made publicly available.
17. The TSD Sub-Committee shall monitor the follow-up to the report of the Panel of Experts
and its recommendations. The … [civil society mechanisms set up under the Agreement]
referred to in Article(s) … of Chapter … may submit observations to the [body] in this
regard.

Article 26.23
Review
1. For the purpose of enhancing the achievement of the objectives of this Chapter, the Parties
shall discuss through the meetings of the Trade and Sustainable Development Sub-
Committee its effective implementation, taking into account, inter alia, major policy
developments in each Party and developments in international agreements.
2. Taking into account the outcome of such discussions, any Party may request the review of
the provisions of this Chapter at any time after the date of entry into force of this Agreement.
For this purpose, the Trade and Sustainable Development Sub-Committee may recommend to
the Parties modifications to the relevant provisions of this Chapter, in accordance with the
amendment procedure established in Article X [Amendments].