Challenges For Countries In Trade In Services' Negotiations With The Nafta Approach: The Experience Of Chile In The Free Trade Agreement With The United States
| Author | Rodrigo Monardes V. |
| Position | Counsellor in Trade and Investment, Directorate for International Economic Relations, Permanent Delegation of Chile to the OECD, Chair of the Working Group of the Trade Committee of the OECD, Lawyer, LLM (Heidelberg) |
| Pages | 371-394 |
Challenges For Countries in trade in serviCes’
negotiations With the naFta approaCh:
the experienCe oF Chile in the Free trade agreement
With the united states
Rodrigo Monardes V.*
Permanent Delegation of Chile to the OECD
ABSTRACT
The negotiation of trade in services in the context of a free trade agreement is particu-
larly challenging for developing countries in view of the diverse nature of the services
sector, the broad regulation applicable to the supply of services, the different modes of
supply and the different approaches available for the adoption of the rules governing bi-
lateral trade in services. Two main approaches are available for these negotiations, the
General Agreement on Trade in Services (GATS) model or positive list approach, and
the North American Free Trade Agreement (NAFTA) model or negative list approach.
Even though these two models are similar with respect to the substantive obligations
covering the conditions for supplying services, they differ signicantly with respect to
the manner and the structure of commitments.
Chile faced signicant challenges in concluding a free trade agreement with the United
States. The importance of the trading partner and its market for Chilean exports meant
that Chile had to adopt a number of unfamiliar features, particularly in relation to
nancial services and e-commerce, in order to facilitate and consolidate the process
of opening its market. This article focuses on the chapters of the United States-Chile
Free Trade Agreement addressing trade in services, i.e. cross-border trade in services,
nancial services, telecommunications, temporary entry of business persons and some
provisions on e-commerce. Some investment issues will also be address, particularly
those interacting with cross-border trade in services. Finally, the article explains the re-
levance of this approach as a model or basis for bilateral and plurilateral negotiations
on trade in services for the Pacic Rim countries and as the preferred model for services
trade liberalization for the Latin American countries.
Br. J. Am. Leg. Studies 5 (2016), DOI: 10.1515/bjals-2016-0013
© 2016 Rodrigo Monardes V., published by De Gruyter Open.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.
* Counsellor in Trade and Investment, Directorate for International Economic Relations,
Permanent Delegation of Chile to the OECD, Chair of the Working Group of the Trade
Committee of the OECD, Lawyer, LLM (Heidelberg). The author served as Head of the
Services and Investment Division of the General Directorate of International Economic
Relations of the Ministry of Foreign Affairs of Chile, Services and Investment Lead for
the TPP negotiations, Co-chair of the Investment Expert Group of APEC and Lead for the
Services and Investment Group of the Pacic Alliance. Previously he was Head of the OECD
division and part of Chile’s investment negotiating team in different free trade agreement
negotiations such as with Australia, China, Thailand, Hong Kong and Uruguay. He can be
reached at rmonardes@direcon.gob.cl.
5 Br. J. Am. Leg. Studies (2016)
CONTENTS
I. introduCtion…………………........................................................…..373
ii. Cross-Border trade in serviCes in the unitedstates-Chile Free
trade agreement................................................................................375
iii. the struCture oF the agreement…….........................................…376
A. Cross-Border Trade in Services ………….................................…377
B. Investment ……………………………...................................…381
C. Financial Services ………………….…..........................................383
D. Telecommunications………………………....…........................387
E. E-Commerce …………………………....................................….388
F. Temporary Entry of Business Persons ………...............................389
IV. the inFluenCe oF the naFta approaCh……….........................…...390
V. ConCluding remarks…………...........................................................393
372
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