he principles on which regulation of foreign investment is based are enshrined in Chile’s Political Constitution and include equality before the law, economic freedom and non-discrimination.
- Non-discrimination: This principle derives from the constitutional guarantee of equality before the law and ensures that, on economic matters, foreign investors receive the same, or not less favorable, treatment from the State and its agencies as local investors.
- Non-discretionary treatment: Procedures relating to foreign investment must be clear and transparent and administrative decisions cannot be in any way subjective, providing a guarantee that investors will receive fair treatment.
- Economic freedom: Free access to all sectors of the economy is guaranteed and only the law can, in exceptional circumstances, reserve a certain sector for domestic investment. Article 19 Nº 21 of Chile’s Political Constitution guarantees the right to develop any economic activity within the framework of the corresponding regulation, providing it is not contrary to morality, public order or national security.
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