Casas en el cerro, Región de Valparaíso, Chile
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Agreements and Treaties

Basic Agreement on Cooperation and Friendship (1991)

This agreement was signed on November 19, 1991. This Basic Agreement constitutes a framework that will be applied to specific agreements in the fields of housing, education, projects regarding women issues, culture, technical cooperation, credit, scientific research, promotion of industry and trade.

Bilateral Investment Promotion and Protection Agreement, signed in Stockholm, 24th may 1993.

Specific Agreement to Implement Horizontal Cooperation and Economic Cooperation for Development (1998)

On January 5, 1998, the Governments of Chile and Sweden signed this specific agreement with the purpose of implementing horizontal cooperation and economic cooperation for development. It was agreed to boost programs, projects and activities of economic cooperation, destined to strengthen the productive development of mutual profit.

Air Transport Agreement (2001)

This agreement permits Chilean aircraft to overfly Swedish territory, land without using a stopover on traffic purposes and land with the purpose of traffic of persons and load.

Agreement to Avoid Double Taxation (2004)

The Minister of Treasury, Nicolas Eyzaguirre signed this agreement with his Swedish counterpart on June 4, 2004. The Agreement establishes the deduction of the tax rate over the royalties (technological transference) paid abroad of a 30 percent in Chile and a 30 percent in Sweden to a 10 percent to the cases in general. Likewise, it is eliminated the imposition  of the technical services and other services developed in Chile or Sweden by residents of the other country when its duration is inferior  to six months (these services are subject to a tax rate of 20 percent to 35 percent respectively in Chile). The Agreement guarantees investors of both countries a credit for tax paid in the other country.

Agreement on Social Security (1995), Renegotiated in 2005

Signed on March 13, 1995, this agreement provides Chilean workers in Sweden and Swedish in Chile the possibility of receiving old age, disability and survival pensions in their country of origin through the export of remittances pursuant to the system established by the agreement. Every person claiming this agreement will be entitled to health benefits pursuant to the legislation of the Receiving State.

Renegotiation 2005

Incorporation to the Agreement in force of a special regulation relating concerning Reparatory Pensions granted in Chile by Retting Laws, Valech and the Exonerated as a result of the violation of human rights during the period comprised from September 11, 1973 through March 10, 1990. Through this renegotiation, the aforementioned pensions are no longer considered as such and will not affect the guarantee pension or the other parts of guarantee of the other Swedish pensions. The Chilean legislation on the new Unemployment Insurance Policy is incorporated to the Agreement.

Memorandum of Understanding on Cooperation on Green Technologies and Sustainable Urban Development (2011). This agreement promotes the cooperation in environmental technology, encouraging technological cooperation in sustainable urban development and green technologies within industrial sectors.

Memorandum of Understanding on Cooperation on Sustainable Forest Management (2011). This agreement promotes the cooperation in the field of sustainable forest management, encouraging technological cooperation aimed at the sustainable management of forests of native species and plantation forests.

Memorandum of Understanding on Sustainable and Innovative Mining Cooperation (2011).

This agreement promotes the cooperation in sustainable, innovative mining. These agreements were signed during the visit of the Prime Minister of Sweden, Fredrik Reinfeldt to Chile, on May 18 and 19, 2011. They provided important areas of cooperation with Sweden, putting the concept of innovation for sustainability in a relevant place in the bilateral agenda.

Memorandum of Understanding on Corporate Social Responsibility Cooperation (2012).

Signed during the visit to Chile of the Minister of Trade of Sweden Ewa Björling, on October 4, 2012.

Chile was the first Latin-American country in signing an agreement of this kind with Sweden, which has become the framework for cooperation activities in the CRS field.

The agreements signed during President Bachelet’s State visit to Sweden were:

– Memorandum of Understanding on Cooperation in Welfare Areas, signed by the Minister for Foreign Affairs Heraldo Muñoz and Minister of Industry and Innovation Mikael Damberg.

This is a new pillar in the bilateral relationship. Sweden, through the signing of an MoU, shares its successful experience in formulating and implementing policies to promote greater social welfare in areas such as public health, gender equity, child protection, adult support and prevention, treatment and rehabilitation in the use of drugs, alcohol and tobacco. It seeks to develop public policies that promote greater welfare in order to reduce social gaps.

– Memorandum of Understanding on Cooperation in Corporate Social Responsibility, including Business and Human Rights, signed by Minister for Foreign Affairs Heraldo Muñoz and Minister Mikael Damberg.

This MoU signed in 2012 was renegotiated incorporating human rights as a prominent element within the Social Responsibility of companies. There is also a greater emphasis on gender equality with a view to strengthening the empowerment of women in the business world. The areas of cooperation of the MoU include the dialogue on policies and practices in Corporate Social Responsibility with a focus on good practices in companies, including SMEs; dialogue on the contribution and needs of companies in the field of human rights, gender equality, diversity, decent work, protection of the environment, corporate ethics and the fight against corruption, among others; cooperation in social dialogue in the labor market as a mean to achieve decent working conditions; cooperation between companies, trade unions, civil society, academic and research institutes on CSR.

– Memorandum of Understanding on Cooperation in Green Technologies, Innovation, Urban Development and Sustainable Infrastructure, signed by Minister for Foreign Affairs Heraldo Muñoz and Minister Mikael Damberg.

The Memorandum on Urban Development and Sustainable Infrastructure unveils the promotion of the use of new “green” technologies that allow urban development and infrastructure in accordance with environmental requirements, that establish measures to address climate change, and at the same time, tend to create cities that are smarter, friendlier and with greater cohesion and social integration.

– Memorandum of Understanding on Cooperation in Sustainable Forest Management, signed by Minister for Foreign Affairs Heraldo Muñoz and Minister of Rural Affairs Sven-Erik Bucht.

– Memorandum of Understanding on Sustainable and Innovative Mining Cooperation, signed by Minister of Mining Aurora Williams and Minister Mikael Damberg.

There are close commercial links in forestry and mining and these Memorandums seek to promote a cooperative relationship at the institutional level with emphasis on commercial activity, in particular to strengthen SMEs, joint research development, technology transfer, and exchange of experiences in the formulation and implementation of public policies in both sectors with a focus on social sustainability, environmental, economic growth and the strengthening of gender equality. All this in accordance with the international agenda 2030 for the sustainable development that both countries promote. The last three MoUs are a renegotiated and modernized version of the MoU s signed in 2011.

 – Working Holidays Agreement, signed by Minister for Foreign Affairs Muñoz and Minister Mikael Damberg.

This agreement will allow young people from both countries to visit and work for one year in the territory of the other and has as main objective, to promote mutual knowledge and understanding, providing new experiences of life, young Swedes who can learn our language and our culture, and the young Chileans, in turn, will be able to know better the culture and the Swedish language, thus establishing among the new generations a bond of greater knowledge that will allow to strengthen our relations with a long term vision.

– Joint Statement by President Michelle Bachelet and Prime Minister Stefan Löfven.

– Declaration of Intent on Call for Proposals, in relation to the Global Stars pilot plan, in which our country and the following Eureka members will participate: Austria, France, Germany, Spain, Sweden and Turkey to stimulate joint projects in research and development. Subscribed by the Executive Vice President of CORFO, Eduardo Bitrán together with the President of the Eureka High Level Group, the Swedish Per Tervahauta.

CORFO signed the Declaration of Intent to strengthen Chile’s application to join the Eureka Network, which aims to promote innovation and entrepreneurship of SMEs and Research Centers through joint projects. In order to materialize Chile’s entry into this network, the Global Stars Pilot Plan was created, where institutions and companies from Austria, France, Germany, Sweden, Turkey and Spain will participate together with Chilean institutions and companies in the development of joint projects in different areas of business.

– Memorandum of Understanding on Cooperation in Wood Construction, signed between the Executive Vice President of CORFO and the Vice-president of the Institute of Technical Research SP, Margaret Mc Namee.

CORFO has signed this MoU in Wood Construction with the SP Technical Research Institute of Sweden to initiate cooperation in this priority area and where Sweden has extensive and successful experience including the promotion of wood construction and the support of SMEs in the wood industry.

– Letter of Intent signed by Minister of Transport and Telecommunications Andrés Gómez-Lobo and Minister of Infrastructure Anna Johansson, in relation to Sustainable Transport. To explore possible areas of cooperation in sustainable transport.