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Trade Agreement between Canada and Chile [1943] CATSer 9 (29 October 1943)

E102997 - CTS 1941 No. 16

TRADE AGREEMENT BETWEEN CANADA AND CHILE

The Government of Canada and the Government of Chile, desiring to facilitate further and to develop the commercial relations existing between Canada and Chile, have resolved to conclude a Trade Agreement and have appointed for this purpose as their Plenipotentiaries:

The Government of Canada, the Honourable James Angus MacKinnon, Minister of Trade and Commerce; and

His Excellency the President of the Republic of Chile, Señor Juan Bautista Rossetti, Minister of Foreign Affairs and Commerce;

who, having communicated to each other their full powers, found in good and due form, have agreed on the following Articles:

ARTICLE I

1. Canada and Chile will grant each other unconditional and unrestricted most-favoured-nation treatment in all matters concerning customs duties and subsidiary charges of every kind and in the method of levying duties, and further, in all matters concerning the rules, formalities and charges imposed in connection with the clearing of goods through the customs, and with respect to all laws or regulations affecting the sale or use of imported goods within the country.

2. Accordingly, natural or manufactured products having their origin in either country shall in no case be subject, in regard to the matters referred to above, to any duties, taxes or charges other or higher, or to any rules or formalities other or more burdensome, than those to which the like products having their origin in any third country are or may hereafter be subject.

3. Similarly, natural or manufactured products exported from the territory of Canada or Chile and consigned to the territory of the other country shall in no case be subject with respect to exportation and in regard to the above-mentioned matters to any duties, taxes or charges other or higher, or to any rules or formalities other or more burdensome, than those to which the like products when consigned to the territory of any third country are or may hereafter be subject.

4. Any advantage, favour, privilege or immunity which is or may hereafter be granted by Canada or Chile in regard to the above-mentioned matters, to a natural or manufactured product originating in any third country or consigned to the territory of any third country shall be accorded immediately and without compensation to the like product originating in or consigned to the territory of Canada or Chile respectively.

ARTICLE II

Nitrate of soda and iodine produced in Chile shall not be subject on importation into Canada to any form of quantitative control of imports less favourable than that applied to like products, natural or synthetic, originating in any other foreign country, nor shall such products be subject on importation into Canada to any duties, taxes or charges other or higher than those imposed on like products, natural or synthetic, originating in any other foreign country.

ARTICLE III

The two Governments shall grant one another reciprocally treatment not less favourable than is accorded under like circumstances and conditions to any other foreign country in all matters relating to the control of foreign exchange and imports.

ARTICLE IV

1. The natural or manufactured products of Canada or Chile shall, after importation into the other country, be exempt from all internal taxes, fees, charges or exactions other or higher than those payable on like articles of national origin or any other foreign origin.

2. The provisions of this Article in regard to granting of national treatment shall not affect the application of the laws now in force in Canada whereby leaf tobacco, spirits, beer, malt and malt syrup imported from abroad are subject to special taxes, nor shall they affect the applicability to goods produced or manufactured in Chile of special excise taxes imposed under existing pro­visions of the Special War Revenue Act. In these respects, however, most-favoured-nation treatment shall apply.

3. Similarly, the provisions of this Article in regard to granting of national treatment shall not affect the application of the laws now in force in Chile whereby imported manufactured tobacco, wines and spirits are subject to taxes different to those applicable to like national products. In these respects, however, most-favoured-nation treatment shall likewise apply.

ARTICLE V

1. In the event that the Government of either country adopts any measure which, even though it does not conflict with the terms of this Agreement, is considered by the Government of the other country to have the effect of nullifying or impairing any object of the Agreement, the Government which has adopted any such measure shall consider such representations and proposals as the other Government may make with a view to effecting a mutually satisfactory adjust­ment of the matter.

2. The Government of each country shall accord sympathetic consideration to, and when requested shall afford adequate opportunity for consultation regarding, such representations as the other Government may make with respect to the operation of customs regulations, control of foreign exchange, quantitative restrictions or the administration thereof, the observance of customs formalities, and the application of sanitary laws and regulations for the protection of human, animal or plant life.

ARTICLE VI

1. Nothing in this Agreement shall be construed to prevent the enforcement of such measures as the Government of either country may see fit to adopt

(a) relating to the importation or exportation of gold or silver;

(b) relating to the control of the import or export or sale for export of arms, ammunition, or implements of war, and in exceptional circumstances, all other military supplies;

(c) relating to neutrality or to public security; or

(d) should that country be engaged in hostilities or war.

2. Subject to the requirement that, under like circumstances and conditions, there shall be no arbitrary discrimination by either country against the natural or manufactured products of the other country in favour of the like natural or manufactured products of any other foreign country, the provisions of this Agreement shall not extend to prohibitions or restrictions

(a) imposed on moral or humanitarian grounds;

(b) designed to protect human, animal or plant health or life;

(c) relating to prison-made goods; or

(d) relating to the enforcement of police or revenue laws.

ARTICLE VII

The advantages now accorded, or which may hereafter be accorded, by either country to adjacent countries in order to facilitate frontier traffic and advantages resulting from a customs union to which either country may become a party shall be excepted from the operation of this Agreement.

ARTICLE VIII

The advantages now accorded, or which may hereafter be accorded, by Canada exclusively to other territories under the sovereignty of His Majesty the King of Great Britain, Ireland, and the British dominions beyond the Seas, Emperor of India, or under His Majesty's suzerainty, protection or mandate, shall be excepted from the operation of this Agreement. The advantages now accorded, or which may hereafter be accorded, by Chile exclusively to Argentina, Bolivia or Peru shall likewise be excepted from the operation of this Agreement.

ARTICLE IX

1. The present Agreement shall be ratified and the instruments of ratification shall be exchanged at Ottawa as soon as possible. The Agreement shall come into force thirty days after the exchange of ratifications and shall remain in force for a period of two years. In case neither Government shall have given to the other Government, at least six months before the expiration of the afore­said period, notice of intention to terminate this Agreement, it shall be renewed automatically for a further period of one year and for further successive periods of one year each, until such time as the Government of either country shall have given to the other Government, at least six months before the expiration of one of the aforesaid periods, notice of intention to terminate the Agreement.

2. Pending the definitive coming into force of this Agreement, its provisions shall be applied provisionally by the two Governments for a period of one year as from October 15, 1941. If on the expiration of this period the exchange of ratifications has not been made, the two Governments shall consult one another regarding the extension of the provisional application of this Agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized to that effect, have signed the present Agreement and have affixed their seals hereto.

DONE at Santiago this tenth day of September nineteen hundred and forty-one, in duplicate in English and Spanish, both texts being equally authentic.

Juan B. Rossetti

James A. MacKinnon