02012A1215(01) — EN — 26.12.2023 — 005.001
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AGREEMENT (OJ L 346 15.12.2012, p. 3) |
Amended by:
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Official Journal |
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page |
date |
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DECISION No 5/2014 OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL of 7 November 2014 |
L 196 |
59 |
24.7.2015 |
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DECISION No 1/2020 OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL of 14 December 2020 |
L 25 |
1 |
26.1.2021 |
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L 39 |
1 |
3.2.2021 |
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DECISION No 1/2022 OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL of 23 June 2022 |
L 216 |
22 |
19.8.2022 |
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DECISION No 1/2023 OF THE EU-CENTRAL AMERICA ASSOCIATION COUNCIL of 29 June 2023 |
L |
1 |
10.11.2023 |
AGREEMENT
establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
HUNGARY,
MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
CROATIA,
Contracting Parties to the Treaty on the European Union and the Treaty on the Functioning of the European Union, hereinafter referred to as the "Member States of the European Union",
and
THE EUROPEAN UNION,
on the one hand, and
THE REPUBLIC OF COSTA RICA,
THE REPUBLIC OF EL SALVADOR,
THE REPUBLIC OF GUATEMALA,
THE REPUBLIC OF HONDURAS,
THE REPUBLIC OF NICARAGUA,
THE REPUBLIC OF PANAMA, hereinafter referred to as "Central America",
on the other,
CONSIDERING the traditional historical, cultural, political, economic and social links between the Parties and the desire to strengthen their relations based on common principles and values, building on the existing mechanisms that govern relations between the Parties, as well as the desire to consolidate, deepen and diversify bi-regional links in areas of common interest in a spirit of mutual respect, equality, non-discrimination, solidarity and mutual benefit;
CONSIDERING the positive development in both regions during the last two decades, which has enabled the furtherance of common goals and interests to enter into a new stage of relations, deeper and more modern and permanent, in order to establish a bi-regional association that responds to the current internal challenges as well as new international realities;
EMPHASISING the importance that the Parties attach to the consolidation of the political dialogue and economic cooperation process established to date between the Parties under the San José Dialogue initiated in 1984 and renewed on numerous occasions since then;
RECALLING the conclusions of the 2006 Vienna Summit, including the commitments undertaken by Central America as regards the deepening of regional economic integration;
RECOGNISING the progress achieved in the Central American economic integration process, such as, the ratification of the Convenio Marco para el Establecimiento de la Unión Aduanera Centroamericana and the Tratado sobre Inversión y Comercio de Servicios, as well as the implementation of a jurisdictional mechanism securing enforcement of regional economic legislation throughout the Central American region;
REAFFIRMING their respect for democratic principles and fundamental human rights as set out in the Universal Declaration of Human Rights;
RECALLING their commitment to the principles of the rule of law and good governance;
BASED on the principle of shared responsibilities and convinced of the importance of preventing illicit drug use and of reducing its harmful effects, including the fight against the cultivation, production, processing and trafficking of drugs and its precursors, and money laundering;
NOTING that the provisions of this Agreement that fall within the scope of Part III, Title V of the Treaty on the Functioning of the European Union bind the United Kingdom and Ireland as separate Contracting Parties, and not as part of the European Union, unless the European Union together with the UK and/or Ireland have jointly notified the Republics of the CA Party that the United Kingdom (UK) or Ireland is bound as part of the European Union in accordance with Protocol No. 21 on the position of the United Kingdom and Ireland in respect of the area of Freedom, Security and Justice annexed to the Treaty on European Union and the Treaty on the Functioning of the European Union. If the United Kingdom and/or Ireland ceases to be bound as part of the European Union in accordance with Article 4a of the Protocol No. 21, the European Union together with the UK and/or Ireland shall immediately inform the Republics of the CA Party of any change in their position in which case they shall remain bound by the provisions of this Agreement in their own right. The same applies to Denmark in accordance with the Protocol annexed to those Treaties on the position of Denmark;
HIGHLIGHTING their commitment to working together in pursuit of the objectives of poverty eradication, job creation, equitable and sustainable development, including aspects of vulnerability to natural disasters, environmental conservation and protection and biodiversity, and the progressive integration of the Republics of the CA Party into the world economy;
REAFFIRMING the importance that the Parties attach to the principles and rules which govern international trade, in particular those contained in the Marrakesh Agreement Establishing the World Trade Organisation, done on April 15, 1994 (hereinafter referred to as the "WTO Agreement"), and the multilateral agreements annexed to the WTO Agreement, and to the need to apply them in a transparent and non-discriminatory manner;
CONSIDERING the difference in economic and social development existing between the Republics of the CA Party and the EU Party and the shared objective of strengthening the process of economic and social development in Central America;
DESIRING to strengthen their economic relations, particularly trade and investment, strengthening and improving the current level of access of the Republics of the CA Party to the European Union market, thus contributing to economic growth in Central America and the reduction of asymmetries between the two regions;
CONVINCED that this Agreement will create a climate conducive to growth in sustainable economic relations between them, more particularly in the trade and investment sectors which are essential to the realisation of the economic and social development and technological innovation and modernisation;
HIGHLIGHTING the need to build upon the principles, objectives and mechanisms that govern relations between the two regions, in particular the Political Dialogue and Cooperation Agreement between the European Community and its Member States, and the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama signed in 2003 (hereinafter referred to as the "2003 Political Dialogue and Cooperation Agreement"), as well as the 1993 Framework Cooperation Agreement signed between the same parties;
AWARE of the need to promote sustainable development in both regions through a development partnership involving all relevant stakeholders, including civil society and the private sector, in line with the principles set out in the Monterrey Consensus and the Johannesburg Declaration, and its Plan for Implementation;
REAFFIRMING that the States in their exercise of sovereign power to exploit their natural resources, according to their own environmental and developmental policies, should promote sustainable development;
MINDFUL of the need to develop a comprehensive dialogue on migration to strengthen bi-regional cooperation on migration issues in the framework of the Political Dialogue and Cooperation Parts of this Agreement and ensure the effective promotion and protection of human rights of all migrants;
RECOGNISING that no provision in this Agreement shall in any way refer to, nor shall be interpreted or construed in any way as defining the position of the Parties in ongoing or future bilateral or multilateral trade negotiations;
EMPHASISING the will to cooperate in international fora on issues of mutual interest;
BEARING IN MIND the strategic partnership developed between the European Union and Latin America and the Caribbean in the context of the 1999 Rio Summit and reaffirmed at the 2002 Madrid Summit, the 2004 Guadalajara Summit, the 2006 Vienna Summit, the 2008 Lima Summit and the 2010 Madrid Summit;
TAKING INTO ACCOUNT the Madrid Declaration of May 2010;
HAVE DECIDED TO CONCLUDE THIS AGREEMENT:
PART I
GENERAL AND INSTITUTIONAL PROVISIONS
TITLE I
NATURE AND SCOPE OF THIS AGREEMENT
Article 1
Principles
Article 2
Objectives
The Parties agree that the objectives of this Agreement are to:
strengthen and consolidate the relations between the Parties through an association based on three interdependent and fundamental parts: political dialogue, cooperation and trade, based on mutual respect, reciprocity and common interest. The implementation of this Agreement shall make full use of the institutional arrangements and mechanisms agreed by the Parties;
develop a privileged political partnership based on values, principles and common objectives, in particular the respect for and the promotion of democracy and human rights, sustainable development, good governance and the rule of law, with the commitment to promote and protect these values and principles on the world stage, in such a way that it contributes to the strengthening of multilateralism;
enhance bi-regional cooperation in all areas of common interest with the aim of achieving more sustainable and equitable social and economic development in both regions;
expand and diversify the Parties' bi-regional trade relation in conformity with the WTO Agreement and the specific objectives and provisions set out in Part IV of this Agreement, which should contribute to higher economic growth, to the gradual improvement of the quality of life in both regions and to a better integration of both regions in the world economy;
strengthen and deepen the progressive process of regional integration in areas of common interest, as a way to facilitate the implementation of this Agreement;
reinforce good neighbourly relations and the principle of peaceful resolution of disputes;
at least maintain and preferably develop the level of good governance, social, labour and environmental standards achieved through the effective implementation of international conventions of which the Parties are part of at the time of entry into force of this Agreement; and
foster increased trade and investment among the Parties, taking into account special and differential treatment in order to reduce structural asymmetries existing between both regions.
Article 3
Scope
The Parties shall treat each other as equals. Nothing in this Agreement shall be construed to undermine the sovereignty of any Republic of the CA Party.
TITLE II
INSTITUTIONAL FRAMEWORK
Article 4
Association Council
Article 5
Composition and Rules of Procedures
Article 6
Decision-Making Powers
Article 7
Association Committee
Article 8
Sub-Committees
A Cooperation Sub-Committee is hereby established. It shall assist the Association Committee in the performance of its duties regarding Part III of this Agreement. It shall also have the following tasks:
attend any cooperation related matter mandated by the Association Committee;
follow-up the overall implementation of Part III of this Agreement;
discuss any related cooperation issues that may affect the operation of Part III of this Agreement.
Article 9
Association Parliamentary Committee
Article 10
Joint Consultative Committee
Article 11
Civil Society
PART II
POLITICAL DIALOGUE
Article 12
Objectives
The Parties agree that the objectives of the political dialogue between the Republics of the CA Party and the EU Party are to:
establish a privileged political partnership based notably on the respect for and the promotion of democracy, peace, human rights, the rule of law, good governance and sustainable development;
defend common values, principles and objectives through their promotion at the international level in particular at the United Nations;
strengthen the United Nations Organization as the core of the multilateral system, in order to enable it to tackle global challenges effectively;
intensify political dialogue in order to enable a broad exchange of views, positions and information leading to joint initiatives at international level;
cooperate in the field of foreign and security policy, with the objective of coordinating their positions and taking joint initiatives of mutual interest in the relevant international fora.
Article 13
Areas
Article 14
Disarmament
Article 15
Weapons of Mass Destruction
The Parties furthermore agree to cooperate and to contribute to the objective of non-proliferation by:
taking steps to sign, ratify or accede to, as appropriate, and fully implement and comply with all other relevant international instruments;
establishing an effective system of national export controls controlling the export as well as transit of weapons of mass destruction related goods, including weapons of mass destruction end-use control on dual-use technologies and containing effective sanctions for breaches of export controls.
Article 16
Fight Against Terrorism
They shall do so in particular:
in the framework of full implementation of international conventions and instruments, including all relevant United Nations General Assembly resolutions and United Nations Security Council resolutions;
by exchange of information on terrorist groups and their support networks, in accordance with international and national law;
by cooperating on the means and methods used to counter terrorism, including in technical fields and training, and by exchange of experience in terrorism prevention and in the area of protection in the fight against terrorism;
through exchanges of views on legislative frameworks and best practices, as well as technical and administrative assistance;
through exchange of information in accordance with their respective legislation;
by technical assistance and training on methods of investigation, information technology, design of protocols on prevention, alerts and effective response to terrorist threats or acts; and
through exchanges of views on prevention models related to other illicit activities linked to terrorism, such as money laundering, trafficking of firearms, identity document forgery and human trafficking, among others.
Article 17
Serious Crimes of International Concern
The Parties agree to cooperate to promote universal adherence to the Rome Statute by:
continuing to take steps to implement the Rome Statute and to ratify and implement related instruments (such as the Agreement on Privileges and Immunities of the International Criminal Court);
sharing experience with regional partners in the adoption of legal adjustments required to allow for the ratification and implementation of the Rome Statute; and
taking measures to safeguard the integrity of the Rome Statute.
Article 18
Finance for Development
Article 19
Migration
Article 20
Environment
Article 21
Citizen Security
The Parties shall dialogue on citizen security, which is fundamental to promote human development, democracy, good governance, and respect human rights and fundamental freedoms. They acknowledge that citizen security transcends national and regional borders, and therefore requires the impulse of a broader dialogue and cooperation on this matter.
Article 22
Good Governance in the Tax Area
With a view to strengthening and developing economic activities while taking into account the need to develop an appropriate regulatory framework, the Parties recognise and commit to common and internationally agreed principles of good governance in the tax area.
Article 23
Common Economic-Financial Credit Fund
PART III
COOPERATION
Article 24
Objectives
Priority shall be given to the following objectives, which are further developed in Titles I to IX of this Part:
strengthening peace and security;
contributing to reinforcing democratic institutions, good governance and full applicability of the rule of law, gender equality, all forms of non-discrimination, cultural diversity, pluralism, promotion and respect for human rights, fundamental freedoms, transparency and citizen participation;
contributing to social cohesion through the alleviation of poverty, inequality, social exclusion and all forms of discrimination so as to improve the quality of life for the peoples of Central America and the European Union;
promoting economic growth with a view to furthering sustainable development, reducing the imbalances between and within the Parties and developing synergies between the two regions;
deepening the process of regional integration in Central America by strengthening the capacity to implement and use the benefits of this Agreement, thereby contributing to the economic, social and political development of the Central American region as a whole;
reinforcing production and management capacities and enhancing competitiveness, thereby opening up trade and investment opportunities for all the economic and social players in the two regions.
Article 25
Principles
Cooperation between the Parties shall be governed by the following principles:
cooperation shall support and be complementary to the efforts of the associated countries and regions to implement the priorities set by their own development policies and strategies, without prejudice to the activities carried out with their civil society;
cooperation shall be the result of a dialogue between the associated countries and regions;
the Parties shall promote participation of civil society and local authorities in their development policies and in their cooperation;
cooperation activities shall be established both at national and regional level complementing one another so as to support the general and specific objectives set out in this Agreement;
cooperation shall take into account cross-cutting issues such as democracy and human rights, good governance, indigenous peoples, gender, environment - including natural disasters - and regional integration;
the Parties shall enhance the effectiveness of their cooperation by operating within mutually agreed frameworks. They shall promote harmonisation, alignment and coordination between donors and the fulfilment of mutual obligations linked to the achievement of cooperation activities;
cooperation includes technical and financial assistance as a means to contribute to the implementation of the objectives of this Agreement;
the Parties agree on the importance to take into consideration their different levels of development in the design of cooperation activities;
the Parties agree on the importance of continuing to support poverty reduction policies and strategies of middle-income countries, with a special attention to lower middle-income countries;
cooperation in the framework of this Agreement does not affect the participation of the Republics of the CA Party, as developing countries, in the EU Party's activities in the field of research for development or other European Union development cooperation programmes addressed to third countries, subject to the rules and procedures of these programmes.
Article 26
Modalities and Methodology
In order to implement cooperation activities, the Parties agree that:
instruments may include a large scope of bilateral, horizontal or regional activities, such as programmes and projects, including infrastructure projects, budget support, sectoral policy dialogue, exchange and transfer of equipment, studies, impact assessments, statistics and data bases, exchanges of experience and experts, training, communication and awareness raising campaigns, seminars and publications;
implementing actors may comprise local, national and regional authorities, civil society and international organisations;
they shall provide the appropriate administrative and financial resources necessary to ensure the implementation of the activities of cooperation that they will have agreed in accordance with their own laws, regulations and procedures;
all entities involved in cooperation shall be subject to a transparent and accountable management of resources;
they shall promote innovative cooperation and finance modalities and instruments in order to improve the efficiency of cooperation and to make the best use of this Agreement;
cooperation between the Parties shall identify and develop innovative cooperation programmes for the Republics of the CA Party;
they shall encourage and facilitate private financing and direct foreign investment, in particular through funding of the European Investment Bank in Central America in line with its own procedures and financial criteria;
the participation of each Party as an associated partner in framework programmes, specific programmes and other activities of the other Party shall be promoted in accordance with their own rules and procedure;
the participation of the Republics of the CA Party to the EU Party's thematic and horizontal cooperation programmes for Latin America shall be promoted, including by means of possible specific windows;
the Parties, in accordance with their own rules and procedures, shall promote triangular cooperation in areas of common interest between the two regions and with third countries;
the Parties should explore together all practical possibilities for cooperation in their mutual interest.
Article 27
Evolutionary Clause
Article 28
Statistics Cooperation
Cooperation in this field shall also aim at:
the development of a regional statistical system in support of the priorities for regional integration agreed between the Parties;
cooperating in the field of statistics on science, technology and innovation.
TITLE I
DEMOCRACY, HUMAN RIGHTS AND GOOD GOVERNANCE
Article 29
Democracy and Human Rights
Such cooperation may include inter alia:
the effective implementation of the international instruments of human rights, as well as the recommendations emanating from Treaty Bodies and Special Procedures;
the integration of the promotion and protection of human rights in national policies and development plans;
the strengthening of the capacities to apply the democratic principles and practices;
the development and implementation of action plans on democracy and human rights;
awareness raising and education in human rights, democracy and culture of peace;
the strengthening of democratic and human rights-related institutions, as well as the legal and institutional frameworks for the promotion and protection of human rights;
the development of joint initiatives of mutual interest in the framework of relevant multilateral fora.
Article 30
Good Governance
The Parties agree that cooperation in this field shall actively support governments through actions aimed at, in particular:
respecting the rule of law;
guaranteeing the separation of powers;
guaranteeing an independent and efficient judicial system;
promoting transparent, accountable, efficient, stable and democratic institutions;
promoting policies to guarantee accountability and transparent management;
fighting against corruption;
reinforcing good and transparent governance at national, regional and local levels;
establishing and maintaining clear decision making procedures by public authorities at all levels;
supporting the participation of civil society.
Article 31
Modernisation of the State and Public Administration, including Decentralisation
Article 32
Conflict Prevention and Resolution
Article 33
Reinforcement of Institutions and Rule of Law
The Parties shall attach particular importance to the consolidation of the rule of law and the reinforcement of institutions at all levels in the areas of law enforcement and the administration of justice in particular. Cooperation shall notably aim at strengthening the independence of the judiciary and improving its efficiency.
TITLE II
JUSTICE, FREEDOM AND SECURITY
Article 34
Personal Data Protection
Article 35
Illicit Drugs
The Parties shall cooperate to ensure a comprehensive and balanced approach through effective action and coordination between the competent authorities, including the social, justice and interior sectors with the aim to:
exchange points of view regarding legislative schemes and best practices;
fight against the supply, traffic and demand of narcotic drugs and psychotropic substances;
strengthen judicial and police cooperation to combat illicit trafficking;
strengthen maritime cooperation in view of fighting efficiently against trafficking;
establish information and monitoring centres;
define and apply measures to reduce illicit drug trafficking, medical prescriptions (narcotic drugs and psychotropics) and chemical precursors;
set up joint research programmes and projects as well as reciprocal judiciary assistance;
stimulate alternative development, in particular, the promotion of legal crops for small producers;
facilitate training and education of human resources in order to prevent the drug consumption and trafficking, as well as to strengthen administrative control systems;
support youth prevention programs and education inside and outside of school;
strengthen prevention as well as treatment, rehabilitation and reintegration of drug users covering a wide range of modalities, including harm reduction related to drug abuse.
Article 36
Money Laundering, including the Financing of Terrorism
Article 37
Organised Crime and Citizen Security
Article 38
The Fight against Corruption
The Parties shall in particular cooperate on:
improving organisational effectiveness and guaranteeing transparent management of public resources and accountability;
strengthening the relevant institutions, including law enforcement authorities and the judiciary;
preventing corruption and bribery in international transactions;
monitoring and evaluation of policies to combat corruption at local, regional, national and international level;
encouraging actions that promote the values of a culture of transparency, legality and a change in people's attitudes to corrupt practices;
further developing cooperation to facilitate measures to recover assets, promoting good practices and capacity building.
Article 39
Illicit Trafficking of Small Arms and Light Weapons
Article 40
The Fight against Terrorism with full Respect for Human Rights
TITLE III
SOCIAL DEVELOPMENT AND SOCIAL COHESION
Article 41
Social Cohesion including the Fight against Poverty, Inequalities and Exclusion
For this purpose, the Parties shall cooperate in order to promote and to support the execution of:
economic policies with a social vision oriented to a more inclusive society with a better income distribution in order to reduce inequality and inequity;
trade and investment policies, bearing in mind the link between trade and sustainable development, fair trade, the development of rural and urban micro, small and medium enterprises and their representatives organisations and to corporate social responsibility;
equitable and sound fiscal policies, allowing for a better redistribution of wealth, ensuring adequate levels of social expenditure and reducing the informal economy;
efficient public social expenditure linked to clear identified social objectives, moving towards a result oriented approach;
effective social policies and equitable access to social services for all in a variety of sectors such as in the areas of education, health, nutrition, sanitation, housing, justice and social security;
employment policies directed towards decent work for all and the creation of economic opportunities with a particular focus on the poorest and most vulnerable groups and the most disadvantaged regions, and specific measures promoting tolerance to cultural diversity at work;
social protection schemes in the area of, inter alia, pensions, health, accidents and unemployment based on the solidarity principle and accessible to all;
strategies and policies to combat xenophobia and discrimination, based in particular on the grounds of gender, race, belief or ethnicity;
specific policies and programmes dedicated to the youth.
Article 42
Employment and Social Protection
The Parties agree to cooperate in order to promote employment and social protection through actions and programmes, which aim in particular to:
ensure decent work for all;
create more inclusive and well functioning labour markets;
extend social protection coverage;
exchange best practices in the field of workers mobility and transfer of pension rights;
promote social dialogue;
ensure the respect for the fundamental principles and rights at work identified by the International Labour Organization's Conventions, the so-called Core Labour Standards, in particular as regards the freedom of association, the right to collective bargaining and non discrimination, the abolition of forced and child labour, and equal treatment between men and women;
address issues relating to the informal economy;
give special attention to disadvantaged groups and to the fight against discrimination;
develop the quality of human resources through the improvement of education and training, including effective vocational training;
improve the health and security conditions at work, notably by strengthening labour inspectorates;
stimulate job creation and entrepreneurship by strengthening the institutional framework necessary to the creation of small and medium sized enterprises and facilitating access to credit and micro-finance.
Article 43
Education and Training
The Parties agree that cooperation shall aim to:
promote equitable access to education for all, including young people, women, senior citizens, indigenous peoples and minority groups, paying special attention to the most vulnerable and marginalised segments of society;
improve the quality of education, considering primary basic education as a priority;
improve completion of primary education and reduce early school leaving in compulsory secondary education;
improve non-formal learning;
improve infrastructure and equipment of existing education centres;
promote education for the indigenous peoples, including intercultural bilingual education;
promote higher education as well as vocational training and lifelong learning.
The Parties also agree to encourage:
cooperation between higher education institutions of the Parties as well as the exchange of students, researchers and academics through existing programmes;
synergies between higher education institutions and private and public sector in agreed areas in order to facilitate transitions into employment.
Article 44
Public Health
Article 45
Indigenous Peoples and other Ethnic Groups
Article 46
Vulnerable Groups
Article 47
Gender
Article 48
Youth
TITLE IV
MIGRATION
Article 49
Migration
Cooperation shall be based on specific needs assessment conducted in mutual consultation between the Parties and be implemented in accordance with the relevant European Union and national legislation in force. It will focus in particular on:
the root causes of migration;
the development and implementation of national legislation and practices with regard to international protection, with a view to satisfying the provisions of the 1951 Geneva Convention relating to the Status of Refugees and of its Protocol of 1967 and other relevant international instruments, and to ensuring the respect of the principle of "non-refoulement";
the admission rules and rights and status of persons admitted, fair treatment and integration of legal residents into society, education and training of legal migrants and measures against racism and xenophobia and all applicable provisions regarding human rights of migrants;
the establishment of an effective policy to facilitate the transfer of remittances;
the temporary and circular migration, including the prevention of brain drain;
the establishment of an effective and comprehensive policy on immigration, smuggling and trafficking in human beings, including the issue of how to combat networks and criminal organisations of smugglers and traffickers and how to protect and support the victims of such trafficking; as well as any other form of migration not in accordance with the legal framework of the country of destination;
the return, under humane, secure and dignified conditions, of persons not holding a legal residence permit, in full respect of their human rights, and the readmission of such persons in accordance with paragraph 2;
the exchange of best practices on integration dealing with migration between the European Union and the Republics of the CA Party;
the supportive measures aimed at the sustainable reinsertion of returnees.
Within the framework of the cooperation to prevent and control immigration that contravenes the legal framework of the country of destination, the Parties also agree to readmit those of their nationals whose stay in the territories of the other Party contravenes their respective legal frameworks. To this end:
each Republic of the CA Party shall, upon request and without further formalities, readmit any of its nationals whose stay in the territory of a Member State of the European Union contravenes the Member State's legal framework, provide their nationals with appropriate identity documents and extend to them the administrative facilities necessary for such purpose and;
each Member State of the European Union shall, upon request and without further formalities, readmit any of its nationals whose stay in the territory of a Republic of the CA Party contravenes the Republic of the CA Party's legal framework, provide their nationals with appropriate identity documents and extend to them the administrative facilities necessary for such purpose.
TITLE V
ENVIRONMENT, NATURAL DISASTERS AND CLIMATE CHANGE
Article 50
Cooperation on Environment
Cooperation shall in particular address:
the protection and sustainable management of natural resources and ecosystems, including forests and fisheries;
the fight against pollution of fresh and marine waters, air and soil, including through the sound management of waste, sewage waters, chemicals and other dangerous substances and materials;
global issues such as climate change, depletion of the ozone layer, desertification, deforestation, conservation of biodiversity and biosafety;
in this context, cooperation shall seek to facilitate joint initiatives in the area of climate change mitigation and adaptation to its adverse effects, including the strengthening of carbon market mechanisms.
Cooperation may involve measures such as:
promoting policy dialogue and exchange of best environmental practices, experiences, and capacity building, including institutional strengthening;
transfer and use of sustainable technology and know-how, including creation of incentives and mechanisms for innovation and environmental protection;
integrating environmental considerations into other policy areas, including land-use management;
promoting sustainable production and consumption patterns, including through the sustainable use of ecosystems, services and goods;
promoting environmental awareness and education as well as enhanced participation by civil society, in particular local communities, in environmental protection and sustainable development efforts;
encouraging and promoting regional cooperation in the field of environmental protection;
assisting in the implementation and enforcement of those multilateral environmental agreements that the Parties are part of;
strengthening environmental management, as well as monitoring and control systems.
Article 51
Management of Natural Disasters
TITLE VI
ECONOMIC AND TRADE DEVELOPMENT
Article 52
Cooperation and Technical Assistance in the Field of Competition Policy
Technical assistance shall focus among others on institutional capacity building and training of human resources of the competition authorities, taking into account the regional dimension, in order to support them in strengthening and effectively enforcing the competition laws in the areas of antitrust and mergers, including competition advocacy.
Article 53
Customs Cooperation and Mutual Assistance
The cooperation shall give rise, among others, to:
exchanges of information concerning customs legislation and procedures, particularly in the following areas:
simplification and modernisation of customs procedures;
facilitation of transit movements;
enforcement of intellectual property rights by the customs authorities;
relations with the business community;
free circulation of goods and regional integration;
the development of joint initiatives in mutually agreed areas;
the promotion of coordination between all relevant border agencies, both internally and across borders.
Article 54
Cooperation and Technical Assistance on Customs and Trade Facilitation
The Parties recognise the importance of technical assistance in the field of customs and trade facilitation in order to implement the measures laid down in the Chapter 3 (Customs and Trade Facilitation) of Title II of Part IV of this Agreement. The Parties agree to cooperate among others in the following areas:
enhancing institutional cooperation to strengthen the process of regional integration;
providing expertise and capacity building on customs issues to the competent authorities (certification and verification of origin, among others) and technical matters to enforce regional customs procedures;
the application of mechanisms and modern customs techniques, including risk assessment, advance binding rulings, simplified procedures for entry and release of goods, customs controls and company audit methods;
introduction of procedures and practices which reflect as far as practicable, international instruments and standards applicable in the field of customs and trade, including WTO rules and World Customs Organization (hereinafter referred to as the "WCO") instruments and standards, inter alia the International Convention on the Simplification and Harmonization of Customs Procedures, as amended (Revised Kyoto Convention) and the WCO Framework of Standards to Secure and Facilitate Global Trade; and
information systems and automation of customs and other trade procedures.
Article 55
Cooperation and Technical Assistance on Intellectual Property and Technology Transfer
The Parties recognise the importance of cooperation and technical assistance in the field of intellectual property and agree to cooperate among others in the following:
enhancing institutional cooperation (for example, between intellectual property offices in the Republics of the CA Party) and thus facilitating the exchange of information on the legal frameworks concerning intellectual property rights and other relevant rules of protection and enforcement;
encourage and facilitate the development of contacts and cooperation in the field of intellectual property, including the promotion and dissemination of information between and within business circles, civil society, consumers and educational institutions;
providing capacity building and training (for example, for judges, prosecutors, customs and police officers), on enforcement of intellectual property rights;
cooperating on the development and enhancement of electronic systems of the Intellectual Property Offices in the Republics of the CA Party;
cooperating on information exchange and providing expertise and technical assistance on regional integration in the field of intellectual property rights.
The Parties also recognise the importance of technical cooperation assistance in the field of technology transfer in order to enhance intellectual property and agree to cooperate among others in the following activities:
the Parties shall promote the transfer of technology, which shall be accomplished through academic, professional and/or business exchange programs directed to the transmission of knowledge from the EU Party to the Republics of the CA Party;
the Parties recognise the importance of creating mechanisms that strengthen and promote Foreign Direct Investment (FDI) in the Republics of the CA Party, especially in innovative and high-tech sectors. The EU Party shall make its best efforts to offer to the institutions and enterprises in its territories incentives destined to promote and to favour the transfer of technology to institutions and enterprises of the Republics of the CA Party, in such a way that allows these countries to establish a viable technological platform;
likewise, the EU Party shall facilitate and promote programs aimed to the creation of activities of Research and Development in Central America, to attend the region's needs, such as access to medicines, infrastructure and technology development necessary for the development of their people, among others.
Article 56
Cooperation on Establishment, Trade in Services and Electronic Commerce
Cooperation includes support for technical assistance, training and capacity building in, inter alia, the following areas:
improving the ability of service suppliers of the Republics of the CA Party to gather information on and to meet regulations and standards of the EU Party at the European Union's level and at national and sub-national levels;
improving the export capacity of service suppliers of the Republics of the CA Party, with particular attention to the needs of small and medium-sized enterprises;
facilitating interaction and dialogue between service suppliers of the EU Party and of the Republics of the CA Party;
addressing qualification and standards needs in those sectors where commitments have been undertaken under this Agreement;
promoting exchange of information and experiences and providing technical assistance regarding the development and implementation of regulations at national or regional level, where applicable;
establishing mechanisms for promoting investment between the EU Party and the Republics of the CA Party, and enhancing the capacities of investment promotion agencies in the Republics of the CA Party.
Article 57
Cooperation and Technical Assistance on Technical Barriers to Trade
The Parties recognise the importance of technical cooperation assistance in the field of technical barriers to trade and agree to cooperate among others, in the following areas:
providing expertise, capacity building, including the development and strengthening of relevant infrastructure, training and technical assistance in the areas of technical regulations, standardisation, conformity assessment, accreditation and metrology. This may include activities to facilitate the comprehension and compliance with European Union requirements, in particular by small and medium sized enterprises;
support the harmonisation of technical barriers to trade legislation and procedures within Central America and facilitate the movement of goods within the region;
promoting the active participation of the Republics of the CA Party's representatives in the work of relevant international organisations with a view to increasing the use of international standards;
exchanging information, experiences and good practices to facilitate the implementation of Chapter 4 (Technical Barriers to Trade) of Title II of Part IV of this Agreement. This can involve programmes for trade facilitation in the areas of joint interest, covered by Chapter 4.
Article 58
Cooperation and Technical Assistance on Government Procurement
The Parties recognise the importance of cooperation and technical assistance in the field of government procurement and agree to cooperate as follows:
upon agreement of the Parties concerned, enhance institutional cooperation and facilitate the exchange of information on the legal frameworks concerning government procurement with a possible launch of a dialogue mechanism;
upon request of a Party, provide capacity building and training, including training for the private sector on innovative means of competitive government procurement;
supporting public outreach activities in the Republics of the CA Party related to the provisions of Title V (Government Procurement) of Part IV of this Agreement, to public sector, private sector and civil society, in relation to European Union Procurement Systems and the opportunities that Central American suppliers might have in the European Union;
supporting the development, establishment and functioning of a single point of access to information related to government procurement for the entire Central American region. This single point of access shall function as defined in Articles 212 paragraph 1(d), 213, 215 paragraph 4, and 223 paragraph 2 of Title V (Government Procurement) of Part IV of this Agreement;
improvement of technological capabilities for public entities either in the Central, Sub-central or other procuring entities.
Article 59
Cooperation and Technical Assistance on Fisheries and Aquaculture
The Parties recognise the importance of economic, technical and scientific cooperation for the sustainable development of the fisheries and aquaculture sector. The objectives of such cooperation should in particular aim to:
promote the sustainable exploitation and management of fisheries;
promote best practices in fisheries management;
improve the data collection in order to take into account the best available scientific information for resource assessment and management;
strengthen the monitoring, control and surveillance (MCS) system;
fight illegal, unreported and unregulated fishing activities (IUU).
The cooperation may involve, among others:
providing technical expertise, support and capacity building for sustainable management of the fisheries' resources, including the development of alternative fisheries;
exchanging information, experiences and capacity building for sustainable social and economic development of the fisheries and aquaculture sector. Particular attention shall be given to the responsible development of artisanal and small scale fisheries and aquaculture and to the diversification of their products and activities, including areas such as the processing industry;
supporting institutional cooperation and facilitating the exchange of information on the legal frameworks concerning fisheries and aquaculture, including any relevant international instruments;
reinforcing cooperation within international organisations and with national and regional fisheries management organisations providing technical assistance, such as workshops and studies, to ensure a better understanding of the added value of international legal instruments in achieving a proper management of marine resources.
Article 60
Cooperation and Technical Assistance on Artisanal Goods
The Parties recognise the importance of cooperation programmes that promote actions that help artisanal goods manufactured in the Republics of the CA Party to benefit from this Agreement. More specifically, cooperation could focus in the following areas:
developing capacities to facilitate market access opportunities for Central American artisanal goods;
capacity building of the Central American entities responsible for export promotion, in particular supporting micro, small and medium size enterprises (hereinafter referred to as "MSMEs") from urban and rural sectors, necessary to manufacture and export artisanal goods, including on customs procedures and technical requirements established in the European Union market;
promotion of the preservation of these cultural products;
supporting the development of infrastructure needed to support MSMEs engaged in the manufacture of artisanal goods;
capacity building to improve the business performance of artisanal goods producers, through training programmes.
Article 61
Cooperation and Technical Assistance on Organic Goods
The Parties recognise the importance of cooperation programs in enhancing the benefits that organic goods produced in the Republics of the CA Party could obtain from this Agreement. More specifically, cooperation may focus, among others, in the following areas:
developing capacities to facilitate market access opportunities for Central American organic goods;
capacity building of the Central American entities responsible for export promotion, in particular supporting MSMEs from urban and rural sectors, necessary for the production and export of organic goods, including on customs procedures, technical regulations and quality standards required in the European Union market;
supporting the development of infrastructure needed to support MSMEs engaged in the production of organic goods;
capacity building to improve the business performance of organic goods producers, through training programs;
cooperation on developing distribution networks in the European Union market.
Article 62
Cooperation and Technical Assistance on Food Safety, Sanitary and Phytosanitary Matters and Animal Welfare Issues
It may involve, among others:
supporting the harmonisation of sanitary and phytosanitary legislation and procedures within Central America and facilitate the movement of goods within the region;
providing expertise on legislative and technical capacity to develop and enforce legislation as well as to develop sanitary and phytosanitary control systems (including eradication programmes, food safety systems and alerts notification), and on animal welfare;
supporting the development and strengthening of institutional and administrative capacities in Central America, both at regional and national level, in order to improve its sanitary and phytosanitary status;
developing capacities in each of the Republics of the CA Party to meet sanitary and phytosanitary requirements in order to improve access to the other Party's market while safeguarding the level of protection;
providing advice and technical assistance on the European Union sanitary and phytosanitary regulatory system and the implementation of the standards required by the European Union market.
Article 63
Cooperation and Technical Assistance on Trade and Sustainable Development
To complement the activities set out in Title III (Social Development and Social Cohesion) and V (Environment, Natural Disasters and Climate Change) of Part III of this Agreement, the Parties agree to cooperate, including by supporting technical assistance, training and capacity building actions in, inter alia, the following areas:
supporting the development of incentives to foster environmental protection and decent work conditions, especially through the promotion of legal and sustainable trade, for instance through fair and ethical trade schemes, including those involving corporate social responsibility and accountability, as well as related labelling and marketing initiatives;
promoting trade related cooperation mechanisms as agreed by the Parties to help implement the current and future international climate change regime;
promoting trade in products derived from sustainably managed natural resources, including through effective measures regarding wildlife, fisheries and certification of legally and sustainably produced timber. Particular attention shall be paid to voluntary and flexible mechanisms and marketing initiatives aimed to promote environmentally sustainable productive systems;
strengthening institutional frameworks, development and implementation of policies and programs regarding the implementation and enforcement of multilateral environmental agreements and environmental laws, as agreed by the Parties, and developing measures to combat illegal trade with environmental relevance, including through enforcement activities and customs cooperation;
strengthening institutional frameworks, development and implementation of policies and programs regarding Fundamental Principles and Rights at Work (freedom of association and collective bargaining, forced labour, child labour, no employment discrimination) and the implementation and enforcement of International Labour Organization (hereinafter referred to as "ILO") conventions and labour laws, as agreed by the Parties;
facilitating exchange of views on the development of methodologies and indicators for sustainability review and supporting initiatives to jointly review, monitor and assess the contribution to sustainable development of Part IV of this Agreement;
strengthening the institutional capacity on trade and sustainable development issues and supporting the organisation and facilitation of the agreed frameworks for dialogue with civil society on such matters.
Article 64
Industrial Cooperation
Article 65
Energy (Including Renewable Energy)
Cooperation may include, among others, the following:
formulation and planning of energy policy, including inter-connected infrastructures of regional importance, improvement and diversification of energy supply and improvement of energy markets, including facilitation of transit, transmission and distribution within the Republics of the CA Party;
management and training for the energy sector and transfer of technology and know-how, including ongoing work on standards relating to energy generating emissions and energy efficiency;
promotion of energy saving, energy efficiency, renewable energy and studying of the environmental impact of energy production and consumption, in particular, its effects on biodiversity, forestry and land use change;
promotion of the application of clean development mechanisms to support the climate change initiatives and its variability.
Article 66
Cooperation on Mining
The Parties agree to cooperate in the field of mining taking into account their respective legislations and internal procedures as well as aspects of sustainable development and including environmental protection and conservation, through initiatives such as promoting exchange of information, experts, experience, development and transfer of technology.
Article 67
Fair and Sustainable Tourism
For this purpose they agree to promote fair and sustainable tourism, in particular to support:
the development of policies to optimise the socio-economic benefits of tourism;
the creation and consolidation of tourism products through the provision of non-financial services, training and technical assistance and services;
the integration of environmental, cultural and social considerations into the development of the tourism sector, including both protection and promotion of cultural patrimony and natural resources;
the involvement of local communities in the process of tourism development, in particular rural and community tourism and ecotourism;
marketing and promotion strategies, the development of institutional capacity and human resources, the promotion of international standards;
the promotion of public-private cooperation and association;
the development of managing plans for national and regional tourism development;
the promotion of information technology in the area of tourism.
Article 68
Transport Cooperation
Cooperation may include the following:
exchanges of information on the Parties' policies, especially regarding urban transport and the interconnection and interoperability of multimodal transport networks and other issues of mutual interest;
the management of inland waterways, roads, railways, ports and airports, including appropriate cooperation between the relevant authorities;
projects for the transfer of European technology in the Global Navigation Satellite System and urban public transport centres;
improvement of safety and pollution prevention standards, including cooperation in the appropriate international forums aiming to ensure better enforcement of international standards;
activities that promote the development of aeronautical and maritime transport.
Article 69
Good Governance in the Tax Area
In accordance with their respective competences, the Parties will improve international cooperation in the tax area to facilitate the collection of legitimate tax revenues and develop measures for the effective implementation of common and internationally agreed principles of good governance in the tax area as mentioned in Article 22, Part II of this Agreement.
Article 70
Micro, Small and Medium Enterprises
The Parties agree to promote the competitiveness and insertion of rural and urban MSMEs and their representative organisations, in the international markets, acknowledging their contribution to social cohesion through poverty reduction and job creation, through the provision of non-financial services, training and technical assistance, by executing the following cooperation actions, among others:
technical assistance and other business development services (BDS);
strengthening of the local and regional institutional frameworks, to create and operate MSMEs;
support MSMEs so that they may participate in the goods and services markets at local and international levels, by means of participation in fairs, commercial missions and other mechanisms of promotion;
promotion of productive linkages processes;
promotion of the exchange of experiences and best practices;
encouragement of joint investments, partnerships and business networks;
identification and reduction of obstacles for the MSMEs to access financial sources and the creation of new financing mechanisms;
promotion of transfer of both technology and knowledge;
support to innovation, as well as research and development;
support to the use of quality management systems.
Article 71
Cooperation on Microcredit and Microfinance
The Parties agree that, in order to reduce income inequality, micro funding, included microcredit programs, generate autonomous employment and prove to be an effective instrument to help overcome poverty and to reduce vulnerability in economic crises, giving broader participation in the economy. Cooperation shall address the following issues:
exchange of experiences and expertise in the area of ethical banking, associative and self-managed community-centred banking and the strengthening of sustainable programs of micro financing, including certification, monitoring and validation programmes;
access to microcredit by facilitating access to financial services provided by banks and financial institutions through incentives and risk management programmes;
exchange of experiences in policies and alternative legislation promoting the creation of popular and ethical banking.
TITLE VII
REGIONAL INTEGRATION
Article 72
Cooperation in the Field of Regional Integration
Article 73
Regional Cooperation
The Parties agree to use all existing cooperation instruments to promote activities aimed at developing active cooperation between the EU Party and the Republics of the CA Party, without undermining cooperation between them, between the Republics of the CA Party and other countries and/or regions in Latin America and the Caribbean in all cooperation areas subject to this Agreement. Regional and bilateral cooperation activities shall seek to be complementary.
TITLE VIII
CULTURE AND AUDIO-VISUAL COOPERATION
Article 74
Culture and Audio-Visual Cooperation
TITLE IX
KNOWLEDGE SOCIETY
Article 75
Information Society
Cooperation in this area shall aim to promote:
dialogue and exchange of experiences on regulatory and policy issues related to the information society, including the use of information and communication technologies such as e-government, e-learning and e-health, and policies aimed at narrowing the digital divide;
exchange of experiences and best practices regarding the development and implementation of e-government applications;
dialogue and exchange of experiences on the development of e-commerce, and digital signature and teleworking;
exchanges of information on standards, conformity assessment and type-approval;
joint research and development projects on information and communication technologies;
development of Academic Advanced Network usage, that is, seeking long term solutions to ensure the self-sustainability of REDClara.
Article 76
Scientific and Technological Cooperation
Cooperation in this field shall aim to develop scientific, technological, and innovation capacities covering all the activities under the research framework programmes (FPs). To this end, the Parties shall foster policy dialogue at regional level, exchange of information and the participation of their research and technological development bodies in the following scientific and technological cooperation activities, in compliance with their internal rules:
joint initiatives to raise the awareness on the science and technology capacity building programmes, as well as on the European Research and Technological Development and Demonstration Programmes;
initiatives to promote participation in FPs and in the other relevant programmes of the European Union;
joint research actions in areas of common interest;
joint scientific meetings to foster exchange of information and to identify areas for joint research;
promotion of advanced science and technology studies which contribute to the long term sustainable development of the Parties;
development of links between the public and private sectors; special emphasis shall be placed on transfer of scientific and technological results into national productive systems and social policies, and environmental aspects and the need to use cleaner technologies shall be taken into account;
evaluation of scientific cooperation and dissemination of results;
promotion, dissemination and transfer of technology;
assistance to establish National Innovation Systems (NIS), to develop technology and innovation, in order to facilitate appropriate responses for demand driven by small and medium size business and to promote local production, among others; furthermore, assistance to develop excellence centres and high-tech clusters;
promotion of training, research, development and applications of nuclear science and technology for medical applications enabling the transfer of technology to the Republics of the CA Party in areas such as health, particularly radiology and nuclear medicine for radiodiagnosis and radiotherapy treatment, and those areas that the Parties mutually agree to establish, in conformity with existing international conventions and regulations and submitting to the jurisdiction of the International Atomic Energy Agency.
PART IV
TRADE
TITLE I
INITIAL PROVISIONS
Article 77
Establishment of a Free Trade Area and Relation to the WTO Agreement
Article 78
Objectives
The objectives of Part IV of this Agreement are:
the expansion and the diversification of trade in goods between the Parties, through the reduction or the elimination of tariff and non tariff barriers to trade;
the facilitation of trade in goods through, in particular, the agreed provisions regarding customs and trade facilitation, standards, technical regulations and conformity assessment procedures as well as sanitary and phytosanitary measures;
the liberalisation of trade in services, in conformity with Article V of GATS;
the promotion of economic regional integration in the area of customs procedures, technical regulations and sanitary and phytosanitary measures to facilitate the circulation of goods between and within the Parties;
the development of a climate conducive to increased investment flows, the improvement of the conditions of establishment between the Parties on the basis of the principle of non-discrimination and the facilitation of trade and investment among the Parties through current payments and capital movements related to direct investment;
the effective, reciprocal and gradual opening of government procurement markets of the Parties;
the adequate and effective protection of intellectual property rights, in accordance with international obligations in force between the Parties, so as to ensure the balance between the rights of the right-holders and public interest, taking into consideration the differences between the Parties and the promotion of technology transfer between the regions;
the promotion of free and undistorted competition in the economic and trade relations between the Parties;
the establishment of an effective, fair and predictable dispute settlement mechanism; and
the promotion of international trade and investment between the Parties in a way that contributes to the objective of sustainable development through joint collaborative work.
Article 79
Definitions of General Application
Unless otherwise specified, for the purposes of Part IV of this Agreement, the below terms shall have the following meaning:
charge equivalent to an internal tax imposed consistently with Article 85 of Chapter 1 (National Treatment and Market Access for Goods) of Title II;
duty imposed pursuant to a Party's domestic legislation and consistently with Chapter 2 (Trade Remedies) of Title II;
fee or other charge imposed pursuant to a Party's domestic law and consistently with Article 87 of Chapter 1 of Title II;
TITLE II
TRADE IN GOODS
CHAPTER 1
National treatment and market access for goods
Article 80
Objective
The Parties shall progressively liberalise trade in goods in accordance with the provisions of this Agreement and in conformity with Article XXIV of GATT 1994.
Article 81
Scope
Except as otherwise provided, the provisions of this Chapter shall apply to trade in goods between the Parties.
Article 82
Classification of Goods
The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature in conformity with the Harmonized System.
Article 83
Elimination of Customs Duties
Article 84
Standstill
Neither Party shall increase any existing customs duty, or adopt any new customs duty, on a good originating in the other Party ( 3 ). This shall not preclude either Party from:
raising a customs duty to the level established in its Schedule following a unilateral reduction;
maintaining or increasing a customs duty as authorised by the Dispute Settlement Body of the WTO; or
increasing the base rates of excluded goods with a view to reaching a common external tariff.
Article 85
National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement ( 4 ).
Article 86
Import and Export Restrictions
Neither Party shall adopt or maintain any prohibition nor restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined to the territory of the other Party, except as otherwise provided in this Agreement or in accordance with Article XI of GATT 1994 and its interpretative notes. To this end, Article XI of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement ( 5 ).
Article 87
Fees and Other Charges on Imports and Exports
Each Party shall ensure in accordance with Article VIII.1 of GATT 1994 and its interpretative notes that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charges applied consistently with Article 85 of this Chapter, and antidumping and countervailing duties applied pursuant to a Party's domestic law and consistently with Chapter 2 (Trade Remedies) of this Title), imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
Article 88
Duties or Taxes on Exports
Except as otherwise provided for in this Agreement, neither Party shall maintain or adopt any duties or taxes imposed on or in connection with the exportation of goods to the other Party.
Article 89
Agricultural Export Subsidies
No Party shall maintain, introduce or reintroduce export subsidies on agricultural goods, which are destined to the territory of the other Party and are either:
fully and immediately liberalised in accordance with Annex I (Elimination of Customs Duties); or
fully but not immediately liberalised and benefit from a duty free quota at entry into force of this Agreement in accordance with Annex I (Elimination of Customs Duties); or
subject to preferential treatment as established under this Agreement for products falling under headings 0402 and 0406 , and benefitting from a duty free quota.
Article 90
Technical Cooperation
Technical cooperation assistance measures to enhance trade in fisheries, aquaculture, artisanal goods and organic products between the Parties are established in Articles 59, 60 and 61 of Title VI (Economic and Trade Development) of Part III of this Agreement.
Article 91
Sub-Committee on Market Access for Goods
The functions of the Sub-Committee shall include:
monitoring the correct application and administration of this Chapter;
serving as a forum for consultations concerning the interpretation and application of this Chapter;
examining the proposals presented by the Parties regarding acceleration of tariff dismantling and inclusion of goods in the Schedules;
making any relevant recommendations to the Association Committee with regards to matters of its competence; and
any other issue instructed by the Association Committee.
CHAPTER 2
Trade remedies
Article 92
General Provisions
Article 93
Transparency and Legal Certainty
Article 94
Consideration of Public Interest
A Party may choose not to apply anti-dumping or countervailing measures where, on the basis of the information made available during the investigation, it can clearly be concluded that it is not in the public interest to apply such measures.
Article 95
Lesser Duty Rule
Where a Party decides to impose an anti-dumping or countervailing duty, the amount of such duty shall not exceed the margin of dumping or countervailable subsidies, but it is desirable that the duty be less than this margin if such lesser duty would be adequate to remove the injury to the domestic industry.
Article 96
Causal Link
In order to impose anti-dumping or countervailing measures, and in accordance with the provisions established in Article 3.5 of the Anti-Dumping Agreement and Article 15.5 of the SCM Agreement, investigating authorities shall, as part of the demonstration of a causal relationship between the dumped imports and the injury to the domestic industry, separate and distinguish the injurious effects of all known factors from the injurious effects of the dumped or subsidized imports.
Article 97
Cumulative Assessment
When imports from more than one country are simultaneously subject to anti-dumping or countervailing duty investigations, the investigating authority of the EU Party shall examine with special care whether the cumulative assessment of the effects of the imports from any Republic of the CA Party, is appropriate in light of the conditions of competition between the imported products and the conditions of competition between the imported products and the like domestic product.
Article 98
Exclusion from Dispute Settlement Procedures
The Parties shall not have recourse to dispute settlement procedures under Title X (Dispute Settlement) of Part IV of this Agreement for matters arising under this Section.
Article 99
Administration of Safeguard Proceedings
Article 100
Non Cumulation
Neither Party may apply, with respect to the same product, at the same time:
a bilateral safeguard measure in accordance with Sub-Section B.3 (Bilateral Safeguard Measures) of this Chapter; and
a measure under Article XIX of GATT 1994, the WTO Agreement on Safeguards (hereinafter referred to as the "Safeguards Agreement") or Article 5 of the Agriculture Agreement.
Article 101
General Provisions
The Parties retain their rights and obligations under Article XIX of GATT 1994, the Safeguards Agreement, Article 5 of the Agriculture Agreement and the Agreement on Rules of Origin.
Article 102
Transparency
Notwithstanding Article 101, at the request of the other Party, the Party initiating an investigation or intending to take safeguard measures shall provide immediately ad hoc written notification of all pertinent information including where relevant, on the initiation of a safeguard investigation, on the provisional findings and on the final findings of the investigation.
Article 103
Exclusion from Dispute Settlement Procedures
The Parties shall not have recourse to dispute settlement procedures under Title X (Dispute Settlement) of Part IV of this Agreement for provisions referring to WTO rights and obligations arising under this Sub-Section.
Article 104
Application of a Bilateral Safeguard Measure
If the conditions in paragraph 1 are met, the safeguard measures of the importing Party may only consist of one of the following:
suspension of the further reduction of the rate of customs duty on the product concerned provided for under this Agreement; or
increase in the rate of customs duty on the product concerned to a level which does not exceed the lesser of:
the most-favoured nation applied rate of customs duty on the product in effect at the time the measure is taken; or
the most-favoured nation applied rate of customs duty on the product in effect on the day immediately preceding the date of entry into force of this Agreement.
Article 105
Conditions and Limitations
A bilateral safeguard measure may not be applied:
except to the extent, and for such time, as may be necessary to prevent or remedy the situation described in Article 104 or 109;
for a period exceeding two years. The period may be extended by another two years if the competent authorities of the importing Party determine, in conformity with the procedures specified in this Sub-Section, that the measure continues to be necessary to prevent or remedy the situations described in Article 104 or 109, provided that the total period of application of a safeguard measure, including the period of initial application and any extension thereof, does not exceed four years; or
beyond the expiration of the transition period, except with the consent of the other Party. "Transition period" means ten years from the date of entry into force of this Agreement. For any good for which the Schedule in Annex I (Elimination of Customs Duties) of the Party applying the measure provides for tariff elimination of ten or more years, transition period means the tariff elimination period for the goods set out in that Schedule, plus three years.
Article 106
Provisional Measures
In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a bilateral safeguard measure on a provisional basis, without complying with the requirements of Article 116, paragraph 1 of this Chapter, pursuant to a preliminary determination that there is clear evidence that imports of a product originating in the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and that such imports cause or threaten to cause the situations described in Article 104 or 109. The duration of any provisional measure shall not exceed two hundred days, during which time the Party shall comply with the relevant procedural rules laid down in Sub-Section B.4 (Procedural Rules Applicable to Bilateral Safeguard Measures). The Party shall promptly refund any tariff increases if the investigation described in Sub-Section B.4 does not result in a finding that the requirements of Article 104 are met. The duration of any provisional measure shall be counted as part of the period described in Article 105, paragraph 1(b). The importing Party concerned shall inform the other Party concerned upon taking such provisional measures and it shall immediately refer the matter to the Association Committee for examination if the other Party so requests.
Article 107
Compensation and Suspension of Concessions
Article 108
Time Lapse in between Two Measures
No safeguard measure referred to in this Sub-Section shall be applied to the import of a product that has previously been subject to such a measure, unless a period of time equal to half of that during which the safeguard measure was applied for the immediately preceding period has elapsed.
Article 109
Outermost Regions
Article 110
Applicable Law
For the application of bilateral safeguard measures, the competent investigating authority shall comply with the provisions of this Sub-Section and in cases not covered by this Sub-Section, the competent investigating authority shall apply the rules established under its domestic legislation.
Article 111
Initiation of a Proceeding
Article 112
Investigation
Article 113
Evidence of Injury and Causal Link
Article 114
Hearings
In the course of each proceeding, the competent investigating authority shall:
hold a public hearing, after providing reasonable notice, to allow all interested parties and any representative consumer association, to appear in person or by counsel, to present evidence and to be heard on serious injury or threat of serious injury, and the appropriate remedy; or
provide an opportunity to all interested parties to be heard where they have made a written application within the period laid down in the notice of initiation showing that they are actually likely to be affected by the outcome of the investigation and that there are special reasons for them to be heard orally.
Article 115
Confidential Information
Any information which is by nature confidential or which is provided on a confidential basis shall, upon cause being shown, be treated as such by the competent investigating authority. Such information shall not be disclosed without permission of the Party submitting it. Parties providing confidential information may be requested to furnish non-confidential summaries thereof or, if such parties indicate that such information cannot be summarised, the reasons why a summary cannot be provided. However, if the competent investigating authority finds that a request for confidentiality is not warranted and if the party concerned is either unwilling to make the information public or to authorise its disclosure in generalised or summary form, the authority may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct.
Article 116
Notifications and Publications
CHAPTER 3
Customs and trade facilitation
Article 117
Objectives
Article 118
Customs and Trade-Related Procedures
The Parties agree that their respective customs legislation, provisions and procedures shall be based upon:
the international instruments and standards applicable in the field of customs including the WCO Framework of Standards to Secure and Facilitate Global Trade as well as the International Convention on the Harmonized Commodity Description and Coding System;
the protection and facilitation of legitimate trade through effective enforcement of and compliance with the requirements set out in the customs legislation;
legislation that avoids unnecessary or discriminatory burdens, safeguards against customs fraud and provides for further facilitation for high levels of compliance;
the application of modern customs techniques, including risk management, simplified procedures for entry and release of goods, post release controls, and company audit methods;
a system of binding rulings on customs matters, notably on tariff classification and rules of origin, in accordance with rules laid down in the legislation of the Parties;
the progressive development of systems, including those based upon information technology, to facilitate the electronic exchange of data within customs administrations and with other related public institutions;
rules that ensure that any penalties imposed for minor breaches of customs regulations or procedural requirements are proportionate and non-discriminatory and, in their application, do not result in unwarranted delays;
fees and charges that are reasonable and limited in amount to the cost of the service provided in relation to any specific transaction, and are not calculated on an ad valorem basis. Fees and charges shall not be imposed for consular services; and
the elimination of any requirements for the mandatory use of pre-shipment inspections as defined in the WTO Agreement on Preshipment Inspection, or any other inspection activity performed at destination, before customs clearance, by private companies.
In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:
take steps, to the extent possible, towards the reduction, simplification and standardisation of data and documentation required by customs and other related public institutions;
simplify requirements and formalities wherever possible, in respect of the rapid release and clearance of goods;
provide effective, prompt, non-discriminatory and easily accessible procedures enabling the right of appeal, according to the legislation of each Party, against customs administrative actions, rulings and decisions affecting imports, exports or goods in transit. Charges, if any, shall be commensurate with costs of the appeals procedures; and
take measures in order to ensure that the highest standards of integrity are maintained.
Article 119
Transit Movements
Article 120
Relations with the Business Community
The Parties agree:
to ensure that all legislation, procedures and fees and charges are made publicly available, as far as possible through electronic means, together with necessary additional information.
The Parties shall make publicly available relevant notices of an administrative nature, including requirements and entry procedures for goods, hours of operation and operating procedures for customs offices and points of contact for information enquiries;
on the need for timely and regular consultations with representatives of interested parties on customs related legislative proposals and procedures. To this end, appropriate and regular consultation mechanisms shall be established by each Party;
that there shall be a reasonable time period between the publication of new or amended legislation, procedures and fees or charges and their entry into force ( 6 );
to foster cooperation with the business community via the use of non-arbitrary and publicly accessible procedures, such as Memoranda of Understanding, based on those promulgated by the WCO; and
to ensure that their respective customs and related requirements and procedures continue to meet the needs of the trading community, follow best practices, and remain as little trade-restrictive as possible.
Article 121
Customs Valuation
The WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as the "Customs Valuation Agreement") shall govern customs valuation rules applied to reciprocal trade between the Parties.
Article 122
Risk Management
Each Party shall use risk management systems that enable its customs authorities to focus inspection activities on high-risk goods and that facilitate the clearance and movement of low-risk goods.
Article 123
Sub-Committee on Customs, Trade Facilitation and Rules of Origin
The functions of the Sub-Committee shall include:
monitoring the implementation and the administration of this Chapter and of Annex II (Concerning the Definition of the Concept of "Originating Products" and Methods of Administrative Cooperation) of this Agreement;
providing a forum to consult and discuss all issues concerning customs, including in particular customs procedures, customs valuation, tariff regimes, customs nomenclature, customs cooperation and mutual administrative assistance in customs matters;
providing a forum to consult and discuss issues relating to rules of origin and administrative cooperation;
enhancing cooperation on the development, the application and the enforcement of customs procedures, mutual administrative assistance in customs matters, rules of origin and administrative cooperation;
attending requests of modifications of the rules of origin and submitting to the Association Committee the results of the analyses and the recommendations;
carrying out the tasks and functions established in Annex II (Concerning the Definition of the Concept of "Originating Products" and Methods of Administrative Cooperation) of this Agreement;
enhancing cooperation on capacity building and technical assistance; and
any other issue instructed by the Association Committee.
Article 124
Cooperation and Technical Assistance on Customs and Trade Facilitation
The technical assistance measures required for the implementation of this Chapter are established in Articles 53 and 54 of Title VI (Economic and Trade Development) of Part III of this Agreement.
CHAPTER 4
Technical barriers to trade
Article 125
Objectives
Article 126
General Provisions
The Parties reaffirm their existing rights and obligations with respect to each other under the TBT Agreement, which is hereby incorporated into and made part of this Agreement. The Parties take special account of Article 12 of the TBT Agreement on special and differential treatment.
Article 127
Scope and Coverage
Article 128
Definitions
For the purposes of this Chapter, the definitions of Annex I to the TBT Agreement shall apply.
Article 129
Technical Regulations
The Parties agree to make the best use of good regulatory practices, as indicated in the TBT Agreement. In particular, the Parties agree to:
use relevant international standards as a basis for technical regulations including conformity assessment procedures, except when such international standards would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued; and where international standards have not been used as a basis, to explain, upon request of the other Party, the reasons why such standards have been judged inappropriate or ineffective for the aim being pursued;
promote the development of regional technical regulations and that these replace any existing national ones, in order to facilitate trade with and between the Parties;
establish mechanisms for improved information to the other Party' industries on technical regulations (for example, through a public website); and
provide upon request and without undue delay, information, and where appropriate, written guidance on compliance with their technical regulations to the other Party or its economic operators.
Article 130
Standards
The Parties undertake to:
ensure appropriate interaction of regulatory authorities and national, regional or international standardisation bodies;
ensure the application of the principles set out in the "Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement", adopted by the WTO TBT Committee on 13 November 2000;
ensure that their standards bodies cooperate in order that international standardisation work is, where possible, used as a basis for the development of standards at regional level;
promote the development of regional standards. When a regional standard is adopted, it will fully replace all existing national standards;
exchange information on the Parties' use of standards in connection with technical regulations and to provide as far as possible, that standards shall not be made mandatory; and
exchange information and expertise on the work done by international, regional and national standardisation bodies, and on the extent to which international standards are used as a basis for their national and regional standards; as well as general information on cooperation agreements used by either Party in standardisation.
Article 131
Conformity Assessment and Accreditation
The Parties recognise that a broad range of conformity assessment mechanisms exists to facilitate the acceptance of products in the territory of the Parties, including:
acceptance of a supplier's declaration of conformity;
designation of conformity assessment bodies located in the other Party's territory;
acceptance of the results of conformity assessment procedures by bodies located in the other Party's territory; and
voluntary arrangements between conformity assessment bodies in each Party's territory.
In line with this, the Parties undertake:
in conformity with Article 5.1.2 of the TBT Agreement, to require conformity assessment procedures that are not stricter than necessary;
to ensure that, where several conformity assessment bodies have been authorised by a Party in accordance with its applicable domestic legislation, legislative measures adopted by such Party will not restrict the operators' freedom to choose where to carry out the relevant conformity assessment procedures; and
to exchange information on accreditation policy, and to consider how to make best use of the international standards for accreditation, and international agreements involving the Parties' accreditation bodies, for example, through the mechanisms of International Laboratory Accreditation Cooperation (ILAC) and International Accreditation Forum (IAF).
Article 132
Special and Differential Treatment
In accordance with the provisions of Article 126 of this Chapter, the Parties agree to:
ensure that legislative measures do not restrict the conclusion of voluntary agreements between conformity assessment bodies located in the Republics of the CA Party and those located in the EU Party and promote the participation of such bodies in these agreements;
when one of the Parties identifies a particular problem related to an actual or proposed technical regulation, standard or conformity assessment procedure that may affect trade between the Parties, that exporting Party may seek clarification and guidance on how to comply with the measure of the importing Party. The latter will promptly give due attention to this request and take into consideration the concerns expressed by the exporting Party;
at the request of the exporting Party, the importing Party shall undertake to promptly deliver through its competent authorities information with respect to the technical regulations, standards and conformity assessment procedures applicable to a group of goods or a particular good for its commercialization in the territory of the importing Party; and
in accordance with Article 12.3 of the TBT Agreement, the EU Party, in the preparation or application of technical regulations, standards and conformity assessment procedures, shall take into account the special development, financial and trade needs of the Republics of the CA Party, with a view to ensuring that such technical regulations, standards and conformity assessment procedures do not create unnecessary obstacles to their exports.
Article 133
Cooperation and Technical Assistance
The Parties agree that it is in their common interest to promote mutual cooperation and technical assistance initiatives on issues related to technical barriers to trade. In this respect, the Parties have identified a number of cooperation activities which are set out in Article 57 of Title VI (Economic and Trade Development) of Part III of this Agreement.
Article 134
Collaboration and Regional Integration
The Parties agree that collaboration between national and regional authorities dealing with technical barriers to trade matters, within both the public and private sectors, is important to facilitate trade within the regions and between the Parties themselves. To this end, the Parties undertake to carry out joint actions that may include:
strengthening their cooperation in the field of standards, technical regulations, metrology, accreditation and conformity assessment with a view to increasing mutual understanding of their respective systems and, in areas of common interest, explore trade facilitation initiatives which lead to the convergence of their regulatory requirements. To this end, they may establish regulatory dialogues at both horizontal and sectoral levels;
seeking to identify, develop and promote trade facilitating initiatives which may include, but are not limited to:
reinforcing regulatory cooperation through, for example, the exchange of information, expertise and data, and scientific and technical cooperation with a view to improving the way technical regulations are developed, in terms of transparency and consultation, and making an efficient use of regulatory resources;
simplifying procedures and requirements; and
promoting and encouraging bilateral cooperation between their respective organisations, public or private, responsible for metrology, standardisation, testing, certification and accreditation;
on request, a Party shall give appropriate consideration to proposals that the other Party makes for cooperation under the terms of this Chapter.
Article 135
Transparency and Notification Procedures
The Parties agree:
to fulfil the transparency obligations of the Parties as indicated in the TBT Agreement and provide early warning of the introduction of technical regulations and conformity assessment procedures having a significant effect on trade between the Parties, and when such technical regulations and conformity assessment procedures are introduced, to leave sufficient time between their publication and entry into force for economic operators to adapt to them;
when making notifications in accordance with the TBT Agreement, to allow the other Party at least sixty days following the notification to provide comments in writing on the proposal except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise and, where practicable, to give appropriate consideration to reasonable requests for extending the comment period. This period will be extended if the WTO TBT Committee so recommends; and
to give appropriate consideration to the other Party's views where part of the process in the development of a technical regulation or conformity assessment procedure is, prior to the WTO notification process, open to public consultation in accordance with the procedures of each region; and on request to provide written responses to the comments made by the other Party.
Article 136
Market Surveillance
The Parties undertake to:
exchange views on market surveillance and enforcement activities; and
ensure that market surveillance is carried out by the competent authorities in an independent manner, with a view to avoid conflicts of interest.
Article 137
Fees
The Parties undertake to ensure that:
any fees imposed for assessing the conformity of products originating in the territory of one Party are equitable in relation to any fees chargeable for assessing the conformity of like products of national origin or originating in the territory of the other Party, taking into account communication, transportation and other costs arising from differences between the location of the facilities of the applicant and the conformity assessment body;
a Party shall give an opportunity to the other Party to make a representation against the amount charged for assessing the conformity of products when the fee is excessive in relation to the cost of the certification service and where this undermines the competitiveness of its products; and
the anticipated processing period for any mandatory conformity assessment is reasonable and equitable for imported and domestic goods.
Article 138
Marking and Labelling
In particular, the Parties agree:
to require only marking or labelling relevant to consumers or users of the product or to indicate the product's conformity with the mandatory technical requirements ( 7 );
if it is necessary in view of the risk of the products to human, animal or plant health or life, the environment, or national safety, the Parties may:
require the approval, registration or certification of labels or markings as a precondition for sale on their respective markets; or
establish requirements on the physical characteristics or design of a label, in particular that the information be placed in a specific part of the product or in a given format or size.
The above is understood without prejudice to the measures adopted by the Parties pursuant to their internal rules to check the compliance of labels with the mandatory requirements and measures they take to control practices which may mislead consumers;
where a Party requires the use of a unique identification number by economic operators, it shall issue such a number to the other Party's economic operators without undue delay and on a non-discriminatory basis;
provided it is not misleading, contradictory or confusing in relation to the information required in the country of destination of the goods, the Parties shall permit the following:
information in other languages in addition to the language required in the country of destination of the goods;
international nomenclatures, pictograms, symbols or graphics; and
additional information to that required in the country of destination of the goods;
the Party shall, where legitimate objectives under the TBT Agreement are not compromised and the information can properly reach the consumer, endeavour to accept non-permanent or detachable labels, or marking or labelling in the accompanying documentation rather than physically attached to the product; and
the Parties shall allow that labelling and corrections to labelling take place in the country of destination prior to the commercialisation of the goods.
Taking into account paragraph 2, the Parties agree that, when a Party requires marking or labelling of textiles, clothing or footwear, the following information alone may be required to be permanently marked:
in the case of textiles and clothing: fibre content, country of origin, safety instructions for specific uses and care instructions; and
in the case of footwear: the predominant materials of the main parts, safety instructions for specific uses and country of origin.
Article 139
Sub-Committee on Technical Barriers to Trade
The Sub-Committee shall have the following functions:
discuss any matter relating to the application of this Chapter that could affect trade between the Parties;
monitor the implementation and administration of this Chapter; promptly addressing any issue that either Party raises related to the development, adoption, application, or enforcement of standards, technical regulations, and conformity assessment procedures; and at either Party's request, consulting on any matter arising under this Chapter;
facilitate the exchange of information on technical regulations, standards and conformity assessment procedures;
provide a forum for discussion in order to solve problems or issues that hinder or limit trade, within the limits of the scope and objective of this Chapter;
enhance cooperation in the development and improvement of standards, technical regulations, and conformity assessment procedures; including the exchange of information between the relevant public or private bodies working on these matters and encourage direct interaction between non-governmental actors, such as standard bodies, accreditators and certifiers;
facilitate the exchange of information about the work being done in non-governmental, regional and multilateral fora engaged in activities related to technical regulations, standardisation and conformity assessment procedures;
explore ways to facilitate trade between the Parties;
report on the cooperation programs established under Article 57 of Title VI (Economic and Trade Development) of Part III of this Agreement, their achievements and the impact of these projects in facilitating trade and in implementing the provisions of this Chapter;
review this Chapter in the light of any developments under the TBT Agreement;
report to the Association Committee on the implementation of the provisions of this Chapter, in particular the advances in the fulfilment of the goals established and the provisions related to special and differential treatment;
take any other steps the Parties consider will assist them in implementing this Chapter;
establish dialogues between regulators in accordance with Article 134(a) of this Chapter and, where appropriate, working groups to discuss different topics of interest to the Parties. The working groups may include or consult with non-governmental experts and stakeholders; and
any other issue instructed by the Association Committee.
CHAPTER 5
Sanitary and phytosanitary measures
Article 140
Objectives
The objectives of this Chapter are to:
protect human, animal or plant life or health in the territory of the Parties while facilitating trade between them under the scope of the implementation of this Chapter;
collaborate for the further implementation of the SPS Agreement;
ensure that sanitary and phytosanitary measures do not create unjustified barriers to trade between the Parties;
consider the asymmetries between the regions;
enhance cooperation in the sanitary and phytosanitary field in line with Part III of this Agreement, with the aim of strengthening the capacities of a Party on sanitary and phytosanitary matters in order to improve access to the market of the other Party whilst safeguarding the level of protection of humans, animals and plants; and
progressively implement the region to region approach in trade of goods subject to sanitary and phytosanitary measures.
Article 141
Multilateral Rights and Obligations
The Parties reaffirm their rights and obligations under the SPS Agreement.
Article 142
Scope
Article 143
Definitions
For the purposes of this Chapter, the definitions contained in Annex A of the SPS Agreement shall apply.
Article 144
Competent Authorities
The Competent Authorities of the Parties are the authorities competent for the implementation of this Chapter, as provided for in Annex VI (Competent Authorities). The Parties shall, in accordance with Article 151 of this Chapter, inform each other of any change concerning such Competent Authorities.
Article 145
General Principles
Article 146
Import Requirements
Article 147
Trade Facilitation
List of establishments:
For the import of animal products, the exporting Party shall inform the importing Party of its list of establishments complying with the importing Party's requirements;
Upon request of the exporting Party, accompanied by the appropriate sanitary guarantees, the importing Party shall approve establishments as referred to in Annex VII (Requirements and Provisions for Approval of Establishments for Products of Animal Origin) which are situated on the territory of the exporting Party, without prior inspection of individual establishments. Such approval shall be consistent with the requirements and provisions set out in Annex VII, and it is limited to those categories of products for which imports are authorised;
The sanitary guarantees referred in this Article may include relevant and justified information to ensure the sanitary status of the live animals and animal products to be imported;
Unless additional information is requested, the importing Party shall take the necessary legislative or administrative measures, in accordance with its applicable legal procedures, to allow import on that basis within forty working days after having received the request of the exporting Party accompanied by the appropriate sanitary guarantees;
The importing Party will regularly submit a record of rejected requests for approval, including information about the non-conformities upon which the rejection to approve an establishment was based.
Article 148
Verifications
In order to maintain confidence in the effective implementation of the provisions of this Chapter and within its scope, each Party has the right to:
carry out verification of all or part of the other Party's authorities' control system, in accordance with the guidelines described in Annex VIII (Guidelines for Conducting Verifications). The expenses of such verification shall be borne by the Party carrying out the verification; and
receive information from the other Party about its control system and be informed of the results of the controls carried out under that system.
Article 149
Measures Linked to Animal and Plant Health
Article 150
Equivalence
Through the Sub-Committee on Sanitary and Phytosanitary Matters established by Article 156, the Parties may develop provisions on equivalence and will make recommendations according to the procedures set up in the institutional provisions of this Agreement.
Article 151
Transparency and Exchange of Information
The Parties shall:
pursue transparency as regards sanitary and phytosanitary measures applicable to trade;
enhance mutual understanding of each Party’s sanitary and phytosanitary measures and their application;
exchange information on matters related to the development and the application of sanitary and phytosanitary measures that affect, or may affect, trade between the Parties with a view to minimising their negative trade effects; and
communicate, upon request of a Party, the requirements that apply to the import of specific products.
Article 152
Notification and Consultation
Article 153
Emergency Measures
Article 154
Cooperation and Technical Assistance
Article 155
Special and Differential Treatment
Any Republic of the CA Party may directly consult with the EU Party when it identifies a particular problem related to a proposed measure of the EU Party that may affect their trade. For such consultations, the decisions of the WTO/SPS Committee such as document G/SPS/33 and its modifications may be used as guidance.
Article 156
Sub-Committee on Sanitary and Phytosanitary Matters
The Sub-Committee may address any matter related to the rights and obligations of this Chapter. In particular, it shall have the following responsibilities and functions:
recommend the development of the necessary procedures or arrangements for the implementation of this Chapter;
to monitor the progress of the implementation of this Chapter;
to provide a forum for discussion of problems arising from the application of certain sanitary or phytosanitary measures with a view to reaching mutually acceptable alternatives. To this end, the Sub-Committee shall be convened as a matter of urgency, at the request of a Party, so as to carry out consultations;
to conduct, if necessary, the consultations established in Article 155 of this Chapter concerning the special and differential treatment;
to conduct, if necessary, the consultations established in Article 157 of this Chapter concerning the settlement of disputes arising under this Chapter;
to promote cooperation on animal welfare between the Parties; and
any other issue instructed by the Association Committee.
Article 157
Dispute Settlement
CHAPTER 6
Exceptions related to goods
Article 158
General Exceptions
TITLE III
ESTABLISHMENT, TRADE IN SERVICES AND ELECTRONIC COMMERCE
CHAPTER 1
General provisions
Article 159
Objective, Scope and Coverage
Article 160
Definitions
For the purposes of this Title:
"measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
"measures adopted or maintained by a Party" means measures taken by:
central, regional or local governments and authorities; and
non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;
"natural person of a Party" means a national of one of the Member States of the European Union or of a Republic of the CA Party according to their respective legislation;
"juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
an "EU Party juridical person" or a "juridical person of a Republic of the CA Party" means a juridical person established in accordance with the laws of a Member State of the European Union or of a Republic of the CA Party respectively, and having its registered office, central administration, or principal place of business within the territory of the EU Party or the territory of a Republic of the CA Party, respectively.
Where the juridical person has only its registered office or central administration within the territory of the EU Party or within the territory of a Republic of the CA Party, respectively, it shall not be considered as an EU Party juridical person or a juridical person of a Republic of the CA Party respectively, unless it is engaged in substantive business operations within the territory of a Member State of the European Union or within the territory of a Republic of the CA Party, respectively ( 9 ); and
Notwithstanding the preceding subparagraph, shipping companies established outside the EU Party or the Republics of the CA Party and controlled by nationals of a Member State of the European Union or of a Republic of the CA Party, respectively, shall also be beneficiaries of the provisions of this Agreement, if their vessels are registered in accordance with their respective legislation, in that Member State of the European Union or in a Republic of the CA Party and carry the flag of a Member State of the European Union or of a Republic of the CA Party.
Article 161
Cooperation on Establishment, Trade in Services and E-Commerce
The Parties agree that it is in their common interest to promote mutual cooperation and technical assistance initiatives on issues related to Establishment, Trade in Services and E-Commerce. In this sense, the Parties have identified a number of cooperation activities which are set out in Article 56 of Title VI (Economic and Trade Development) of Part III of this Agreement.
CHAPTER 2
Establishment
Article 162
Definitions
For the purposes of this Chapter:
"branch of a juridical person of a Party" means a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, does not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
"economic activity" covers the activities committed in Annex X (Lists of Commitments on Establishment). "Economic activity" does not include activities carried out in the exercise of governmental authority, for example, activities carried out neither on a commercial basis nor in competition with one or more economic operators;
"establishment" means:
the constitution, acquisition or maintenance of a juridical person ( 10 ); or
the creation or maintenance of a branch or representative office,
within the territory of a Party for the purpose of performing an economic activity;
"investor of a Party" means any natural or juridical person of a Party that seeks to perform or performs an economic activity through setting up an establishment; and
"subsidiary of a juridical person of a Party" means a juridical person which is effectively controlled by another juridical person of that Party ( 11 ).
Article 163
Coverage
This Chapter applies to measures by the Parties affecting establishment ( 12 ) in all economic activities as defined in Article 162, with the exception of:
mining, manufacturing and processing of nuclear materials;
production of or trade in arms, munitions and war material;
audio-visual services;
national and inland waterway cabotage transport ( 13 ); and
national and international air transport services, whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
aircraft repair and maintenance services during which an aircraft is withdrawn from service;
the selling and marketing of air transport services;
computer reservation system (CRS) services; and
other ancillary services that facilitate the operation of air carriers, as contained in Annex X (Lists of Commitments on Establishment).
Article 164
Market Access
In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annex X, are defined as:
limitations on the number of establishments whether in the form of numerical quotas, monopolies, exclusive rights or the requirements of an economic needs test;
limitations on the total value of transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
limitations on the total number of operations or on the total quantity of output expressed in the terms of designated numerical units in the form of quotas or the requirement of an economic needs test ( 14 );
limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment; and
measures which restrict or require specific types of establishment (subsidiary, branch, representative office) ( 15 ) or joint ventures through which an investor of the other Party may perform an economic activity.
Article 165
National Treatment
Article 166
Lists of Commitments
The sectors committed by each of the Parties pursuant to this Chapter and, by means of reservations, the market access and national treatment limitations, conditions and qualifications applicable to establishments and investors of the other Party in those sectors are set out in lists of commitments included in Annex X (Lists of Commitments on Establishment).
Article 167
Other Agreements
Nothing in this Title shall be taken to limit the rights of investors of the Parties to benefit from any more favourable treatment provided for in any existing or future international investment agreement to which a Member State of the European Union and a Republic of the CA Party are Parties. Nothing in this Agreement shall be subject, directly or indirectly, to any investor-to-State dispute settlement procedures established in those agreements.
Article 168
Review
The Parties commit to review the investment legal framework, the investment environment, and the flow of investment between them consistent with their commitments in international agreements no later than three years after the entry into force of this Agreement and at regular intervals thereafter.
CHAPTER 3
Cross-border supply of services
Article 169
Coverage and Definitions
This Chapter applies to measures of the Parties affecting the cross border supply of all services sectors with the exception of:
audio-visual services;
national and inland waterway cabotage transport ( 16 ); and
national and international air transport services, whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
aircraft repair and maintenance services during which an aircraft is withdrawn from service;
the selling and marketing of air transport services;
computer reservation system (CRS) services;
other ancillary services that facilitate the operation of air carriers, as contained in Annex XI (Lists of Commitments on Cross-Border Supply of Services).
For the purposes of this Chapter:
"cross-border supply of services" means the supply of a service:
from the territory of a Party into the territory of the other Party (Mode 1);
in the territory of a Party to the service consumer of the other Party (Mode 2);
"services" includes any service in any sector except services supplied in the exercise of governmental authority;
a "service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers;
"service supplier of a Party" means any natural or juridical person of a Party seeking to supply or supplies a service; and
"supply of a service" includes the production, distribution, marketing, sale and delivery of a service.
Article 170
Market Access
In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annex XI, are defined as:
limitations on the number of services suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; and
limitations on the total number of service operations or on the total quantity of service output expressed in the terms of designated numerical units in the form of quotas or the requirement of an economic needs test. ( 17 )
Article 171
National Treatment
Article 172
Lists of Commitments
The sectors committed by each of the Parties pursuant to this Chapter and, by means of reservations, the market access and national treatment limitations, conditions and qualifications applicable to services and services suppliers of the other Party in those sectors are set out in lists of commitments included in Annex XI (Lists of Commitments on Cross-Border Supply of Services).
CHAPTER 4
Temporary presence of natural persons for business purposes
Article 173
Coverage and Definitions
For the purposes of this Chapter:
"key personnel" means natural persons employed within a juridical person of one Party other than a non-profit organisation and who are responsible for the setting-up or the proper control, administration and operation of an establishment.
"key personnel" comprises "business visitors" responsible for setting up an establishment and "intra-corporate transfers":
"business visitors" means natural persons employed in a senior position responsible for setting up an establishment. They do not engage in direct transactions with the general public and do not receive remuneration from a source located within the host Party;
"intra-corporate transfers" means natural persons who have been employed by a juridical person or have been partners in it for at least one year and who are temporarily transferred to an establishment within the territory of the other Party. The natural person concerned must belong to one of the following categories:
"graduate trainees" means natural persons who have been employed by a juridical person of one Party for at least one year, possess a university degree and are temporarily transferred to an establishment of the juridical person within the territory of the other Party, for career development purposes or to obtain training in business techniques or methods ( 18 );
"business services sellers" means natural persons who are representatives of a service supplier of one Party seeking temporary entry into the territory of the other Party for the purpose of negotiating the sale of services or entering into agreements to sell services for that service supplier. They do not engage in making direct sales to the general public and do not receive remuneration from a source located within the host Party;
"contractual services suppliers" means natural persons employed by a juridical person of one Party which has no establishment within the territory of the other Party and which has concluded a bona fide contract (other than through an agency as defined by CPC 872) ( 19 ) to supply services with a final consumer in the latter Party requiring the presence on a temporary basis of its employees in that Party in order to fulfil the contract to provide services;
"independent professionals" means natural persons engaged in the supply of a service and established as self-employed in the territory of a Party, who have no establishment in the territory of the other Party and who have concluded a bona fide contract (other than through an agency as defined by CPC 872) to supply services with a final consumer in the latter Party requiring their presence on a temporary basis in that Party in order to fulfil the contract to provide services ( 20 );
"qualifications" means diplomas, certificates and other evidence (of formal qualification) issued by an authority designated pursuant to legislative, regulatory or administrative provisions and certifying successful completion of professional training.
Article 174
Key Personnel and Graduate Trainees
For every sector liberalised in accordance with Chapter 2 of this Title, the measures which the EU Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annex XII are defined as limitations on the total number of natural persons that an investor may employ as key personnel and graduate trainees in a specific sector in the form of numerical quotas or a requirement of an economic needs test and as discriminatory limitations.
For every sector listed in Annex XIII and subject to any reservations and conditions set out therein, the measures which a Republic of the CA Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, are defined as limitations on the total number of natural persons that an investor may employ as key personnel and graduate trainees in a specific sector in the form of numerical quotas or a requirement of an economic needs test and as discriminatory limitations.
Article 175
Business Services Sellers
Article 176
Contractual Services Suppliers and Independent Professionals
The Parties reaffirm their respective commitments under GATS as regards the entry and temporary stay of contractual services suppliers and independent professionals.
CHAPTER 5
Regulatory framework
Article 177
Mutual Recognition
Article 178
Transparency and Disclosure of Confidential Information
Article 179
Procedures
Article 180
Understanding on Computer Services
Computer and related services, regardless of whether they are delivered via a network, including the Internet, include all services that provide:
consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, support, technical assistance, or management of or for computers or computer systems; or
computer programs defined as the sets of instructions required to make computers work and communicate (in and of themselves), plus consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, adaptation, maintenance, support, technical assistance, management or use of or for computer programs; or
data processing, data storage, data hosting or database services; or
maintenance and repair services for office machinery and equipment, including computers; and
training services for staff of clients, related to computer programs, computers or computer systems, and not elsewhere classified.
Article 181
Scope and definitions
Article 182
Prevention of Anti-Competitive Practices in the Courier Sector
Article 183
Licences
Where a licence is required, the following shall be made publicly available:
all the licensing criteria and the period of time normally required to reach a decision concerning an application for a licence; and
the terms and conditions of licences.
Article 184
Independence of the Regulatory Bodies
Where Parties have regulatory bodies, such bodies shall be legally separate from, and not accountable to, any supplier of courier services. The decisions of and the procedures used by the regulatory bodies shall be impartial with respect to all market participants.
Article 185
Definitions and Scope
For the purpose of this Title:
"telecommunications services" means all services consisting of the transmission and reception of electro-magnetic signals through telecommunications networks and do not cover the economic activity consisting of the provision of content which requires telecommunications networks or services for its transport;
"public telecommunications services" or "telecommunications services available to the public" means any telecommunication service that a Party requires to be offered to the public generally in accordance with its respective legislation;
a "regulatory authority in the telecommunications sector" means the body or bodies charged with any of the regulatory tasks assigned in accordance with the domestic legislation of each Party;
"essential telecommunications facilities" means facilities of a public telecommunications network or service that:
are exclusively or predominantly provided by a single or limited number of suppliers; and
cannot feasibly be economically or technically substituted in order to provide a service;
a "major supplier" in the telecommunications sector is a supplier of a public telecommunications services which has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for public telecommunications services as a result of control over essential facilities or the use of its position in the market; and
"interconnection" means linking between suppliers providing public telecommunications networks or services in order to allow the users of one supplier to communicate with users of another supplier and to access services provided by another supplier.
Article 186
Regulatory Authority
The decisions taken by such competent bodies shall be effectively enforced in accordance with the applicable legal proceedings. Pending the outcome of any such legal proceedings, the decision of the regulatory authority shall stand unless the competent body or the applicable legislation determines otherwise.
Article 187
Authorisation to Provide Telecommunications Services ( 23 )
Where a licence or an authorisation is required:
all the licensing or authorisation criteria and the reasonable period of time normally required to reach a decision concerning an application for a licence or an authorisation shall be made publicly available;
the reasons for the denial of a licence or authorisation application shall be made known in writing to the applicant upon request; and
the applicant of a licence or an authorisation shall be able to seek recourse before a competent body in accordance with the respective legislation in case that a licence or authorisation application is unduly denied.
Article 188
Competitive Safeguards on Major Suppliers
The Parties shall introduce or maintain appropriate measures for the purpose of preventing suppliers who, alone or together, are a major supplier, from engaging in or continuing anti-competitive practices. These anti-competitive practices shall include in particular:
engaging in anti-competitive cross-subsidisation ( 24 );
using information obtained from competitors with anti-competitive results; and
not making available to other services suppliers on a timely basis technical information about essential facilities and commercially relevant information which are necessary for them to provide services.
Article 189
Interconnection ( 25 )
Interconnection with a major supplier shall be ensured at any technically feasible point in the network. Such interconnection shall be provided in accordance with the respective domestic legislation:
under non-discriminatory terms, conditions (including technical standards and specifications) and rates, and of a quality no less favourable than that provided for its own like services or for like services of non-affiliated service suppliers or for its subsidiaries or other affiliates;
in a timely fashion, on terms, conditions (including technical standards and specifications) and cost-oriented rates that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that the supplier does not need to pay for network components or facilities that it does not require for the service to be provided; and
upon request, at points in addition to the network termination points offered to the majority of users, subject to charges that reflect the cost of construction of necessary additional facilities.
Article 190
Scarce Resources
Any procedure for the allocation and use of scarce resources, including frequencies, numbers and rights of way, shall be carried out in an objective, timely, transparent and non-discriminatory manner. The current state of allocated frequency bands shall be made publicly available, but detailed identification of frequencies allocated for specific government uses is not required.
Article 191
Universal Service
The Parties shall ensure that:
directories of all fixed telephony subscribers are available to users in accordance with the respective legislation; and
organisations that provide the services referred to in paragraph (a) apply the principle of non-discrimination to the treatment of information that has been provided to them by other organisations.
Article 192
Confidentiality of Information
Each Party, in accordance with its respective legislation, shall ensure the confidentiality of telecommunications and related traffic data by means of a public telecommunication network and publicly available telecommunications services, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination, or a disguised restriction on trade in services.
Article 193
Disputes between Suppliers
In the event of a dispute arising between suppliers of telecommunications networks or services in connection with rights and obligations arising from Article 188 and Article 189, the national regulatory authority concerned or another relevant authority shall, at the request of either supplier and in accordance with the procedures established in their respective legislation, issue a binding decision to resolve the dispute in the shortest possible time frame.
Article 194
Scope and Definitions
For the purposes of this Chapter and Chapters 2, 3 and 4 of this Title:
"financial service" means any service of a financial nature offered by a financial service supplier of a Party. Financial services comprise the following activities:
Insurance and insurance-related services:
direct insurance (including co-insurance):
life;
non-life;
reinsurance and retrocession;
insurance inter-mediation, such as brokerage and agency; and
services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.
Banking and other financial services (excluding insurance):
acceptance of deposits and other repayable funds from the public;
lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;
financial leasing;
all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;
guarantees and commitments;
trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
money market instruments (including cheques, bills, certificates of deposits);
foreign exchange;
derivative products including, but not limited to, futures and options;
exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;
transferable securities;
other negotiable instruments and financial assets, including bullion;
participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;
money broking;
asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;
settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;
provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services; and
advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs 1 to 11, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.
"financial service supplier" means any natural or juridical person of a Party that seeks to provide or provides financial services. The term "financial service supplier" does not include a public entity.
"public entity" means:
a government, a central bank or a monetary authority, of a Party, or an entity owned or controlled by a Party, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or
a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions.
"new financial service" means a financial service not supplied in the Party's territory that is supplied within the territory of the other Party, and includes any new form of delivery of a financial service or the sale of a financial product that is not sold in the Party's territory.
Article 195
Prudential Carve-Out
Each Party may adopt or maintain measures for prudential reasons, such as:
the protection of investors, depositors, financial market users, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier;
the maintenance of the safety, soundness, integrity or financial responsibility of financial services suppliers; and
ensuring the integrity and stability of a Party's financial system.
Article 196
Effective and Transparent Regulation
Each Party shall make its best endeavours to provide in advance to all interested persons any measure of general application that the Party proposes to adopt in order to allow an opportunity for such persons to comment on the measure. Such measure shall be provided:
by means of an official publication; or
in other written or electronic form.
Upon request of an applicant, the Party concerned shall inform the applicant of the status of its application. If the Party concerned requires additional information from the applicant, it shall notify the applicant without undue delay.
Article 197
New Financial Services
Article 198
Data Processing
Article 199
Specific Exceptions
Article 200
Scope, Definitions and Principles
For the purpose of this Section and Chapters 2, 3 and 4 of this Title:
"international maritime transport" covers door to door and multi-modal transport operations, which is the carriage of goods using more than one mode of transport, involving a sea-leg, under a single transport document, and to this effect includes the right for international maritime transport suppliers to contract directly with providers of other modes of transport ( 27 );
"maritime cargo handling services" means activities exercised by stevedore companies, including terminal operators, but not including the direct activities of dockers, when this workforce is organised independently of the stevedoring or terminal operator companies. The activities covered include the organisation and supervision of:
the loading/discharging of cargo to/from a ship;
the lashing/unlashing of cargo;
the reception/delivery and safekeeping of cargoes before shipment or after discharge;
"customs clearance services" (alternatively "customs house brokers' services") means activities consisting of carrying out on behalf of another party, customs formalities concerning import, export or through transport of cargoes, whether this service is the main activity of the service provider or a usual complement of its main activity;
"container station and depot services" means activities consisting in storing containers, whether in port areas or inland, with a view to their stuffing/stripping, repairing and making them available for shipments;
"maritime agency services" means activities consisting in representing as an agent, within a given geographic area, the business interests of one or more shipping lines or shipping companies, for the following purposes:
marketing and sales of maritime transport and related services, from quotation to invoicing, and issuance of bills of lading on behalf of the companies, acquisition and resale of the necessary related services, preparation of documentation, and provision of business information;
acting on behalf of the companies organising the call of the ship or taking over cargoes when required;
"freight forwarding services" means the activity consisting of organising and monitoring shipment operations on behalf of shippers, through the acquisition of transport and related services, preparation of documentation and provision of business information.
In view of the existing situation between the Parties in international maritime transport, each Party shall:
effectively apply the principle of unrestricted access to the international maritime markets and trade routes on a commercial and non-discriminatory basis; and
grant to ships flying the flag of the other Party or operated by service suppliers of the other Party treatment no less favourable than that accorded to its own ships with regard to access to ports, use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading ( 28 ).
In applying these principles, each Party shall:
not introduce cargo-sharing arrangements in future bilateral agreements with third countries concerning maritime transport services, including dry and liquid bulk and liner trade, and terminate, within a reasonable period of time, such cargo-sharing arrangements in case they exist in previous bilateral agreements; and
subject to the lists of commitments pursuant to Chapters 2, 3 and 4 of this Title, ensure that any existing or future measures adopted regarding international maritime transport services are non-discriminatory and do not constitute a disguised restriction on international maritime transport services.
CHAPTER 6
Electronic commerce
Article 201
Objective and Principles
Article 202
Regulatory Aspects of E-Commerce
The Parties shall maintain a dialogue on regulatory issues relating to e-commerce, which will inter alia address the following issues:
the recognition of certificates of electronic signatures issued to the public and the facilitation of cross-border certification services;
the treatment of unsolicited electronic commercial communications;
the protection of consumers in the ambit of e-commerce; and
any other issue relevant for the development of e-commerce.
CHAPTER 7
Exceptions
Article 203
General Exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between the Parties where like conditions prevail, or a disguised restriction on establishment or cross-border supply of services, nothing in this Title shall be construed to prevent the adoption or enforcement by any Party of measures which are:
necessary to protect public security or public morals or to maintain public order;
necessary to protect human, animal or plant life or health;
relating to the conservation of exhaustible natural resources if such measures are applied in conjunction with restrictions on domestic investors or on the domestic supply or consumption of services;
necessary for the protection of national treasures of artistic, historic or archaeological value;
necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Title including those relating to:
the prevention of deceptive and fraudulent practices or to deal with the effects of a default on contracts;
the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
safety;
inconsistent with Articles 165 and 171 of this Title, provided that the difference in treatment is aimed at ensuring the effective or equitable imposition or collection of direct taxes in respect of economic activities, investors, services or service suppliers of the other Party ( 29 ).
TITLE IV
CURRENT PAYMENTS AND CAPITAL MOVEMENTS
Article 204
Objective and Scope
Article 205
Current Account
The Parties shall allow or authorise, as appropriate, in freely convertible currency and in accordance with the Articles of Agreement of the International Monetary Fund, including in particular the provisions of Article VIII, any payments and transfers on the current account between the Parties.
Article 206
Capital Account
With regard to transactions on the capital and financial account of balance of payments, from the entry into force of this Agreement, the Parties shall allow or ensure, where applicable, the free movement of capital relating to direct investments made in juridical persons formed in accordance with the laws of the host country and investments and other transactions made in accordance with the provisions of Title III (Establishment, Trade in Services and Electronic Commerce) ( 30 ) of Part IV of this Agreement, and the liquidation and repatriation of these investments and of any profit stemming therefrom.
Article 207
Safeguard Measures
Where, in exceptional circumstances, capital movements between the Parties, cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in a Party, the Party concerned may take safeguard measures with regard to capital movements for a period not exceeding one year. The application of safeguard measures may be extended through their formal reintroduction in case of extremely exceptional circumstances and after having coordinated in advance between the Parties regarding the implementation of any proposed formal reintroduction ( 31 ).
Article 208
Final Provisions
TITLE V
GOVERNMENT PROCUREMENT
Article 209
Introduction
For the purposes of this Title:
"commercial goods and services" means goods and services of a type generally sold or offered for sale in the commercial marketplace to, and customarily purchased by, non-governmental buyers for non-governmental purposes;
"conformity assessment procedure" means any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled;
"construction service" means a service that has as its objective the realization by whatever means of civil or building works, based on Division 51 of the United Nations Provisional Central Product Classification;
"electronic auction" means an iterative process that involves the use of electronic means for the presentation by suppliers of either new prices, or new values for quantifiable non-price elements of the tender related to the evaluation criteria, or both, resulting in a ranking or re-ranking of tenders;
"in writing" or "written" means any worded or numbered expression that can be read, reproduced or later communicated. It may include electronically transmitted and stored information;
"limited tendering" means a procurement method whereby the procuring entity contacts a supplier or suppliers of its choice;
"List of suppliers" means a list of suppliers that a procuring entity has determined satisfy the conditions for participation in that list and/or formal requirements to be included in such list, and that the procuring entity intends to use more than once;
"measure" means any law, regulation, procedure, administrative guidance or practice, of a procuring entity relating to a covered procurement;
"notice of intended procurement" means a notice published by a procuring entity inviting interested suppliers to submit a request for participation, a tender, or both, according to each Party's legislation;
"offset" means any condition or undertaking that encourages local development or improves a Party's balance of payments accounts, such as the use of domestic content, the licensing of technology, investment, counter-trade and similar action or requirement;
"open tendering" means a procurement method whereby all interested suppliers may submit a tender;
"procuring entity" means an entity covered under a Party's Section A, B or C to Appendix 1 (Coverage) to Annex XVI (Government Procurement);
"qualified supplier" means a supplier that a procuring entity recognizes as having satisfied the conditions for participation;
"selective tendering" means a procurement method whereby only qualified or registered suppliers are invited by the procuring entity to submit a tender;
"services" includes construction services, unless otherwise specified; and
"technical specification" means a tendering requirement that:
lays down the characteristics of goods or services to be procured, including quality, performance, safety and dimensions, or the processes and methods for their production or provision; or
addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service.
Article 210
Scope and Coverage
This Title applies to any measure regarding covered procurement. For the purposes of this Title, covered procurement means procurement for governmental purposes:
of goods, services, or any combination thereof:
as specified by each Party in the relevant sections of Appendix 1 (Coverage) to Annex XVI; and
not procured with a view to commercial sale or resale, or for use in the production or supply of goods or services for commercial sale or resale;
by any contractual means, including: purchase, lease, and rental or hire purchase, with or without an option to buy;
for which the value equals or exceeds the relevant threshold specified by each Party in Appendix 1 (Coverage) to Annex XVI, at the time of publication of a notice in accordance with Article 213;
by a procuring entity; and
that is not otherwise excluded from coverage.
Except where provided, this Title does not apply to:
the acquisition or rental of land, buildings or other immovable property or the rights thereon;
non-contractual agreements or any form of assistance that a Party provides, including cooperative agreements, grants, loans, equity infusions, guarantees and fiscal incentives, government provision of goods and services to state, regional, or local government entities;
the procurement or acquisition of fiscal agency or depositary services, liquidation and management services for regulated financial institutions or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;
public employment contracts and related employment measures;
procurement conducted:
for the specific purpose of providing international assistance, including development aid;
under the particular procedure or condition established by an international agreement relating to the stationing of troops or relating to the joint implementation by the signatory countries of a project;
under the particular procedure or condition of an international organisation, or funded by international grants, loans or other assistance where the applicable procedure or condition would be inconsistent with this Title;
purchases made under exceptionally advantageous conditions that only arise in the very short term, such as unusual disposals by companies that normally are not suppliers, or disposals of assets of businesses in liquidation or receivership.
Each Party shall specify the following information in Appendix 1 (coverage) to Annex XVI as follows:
in Section A, the central government entities whose procurement is covered by this Title;
in Section B, the sub-central government entities whose procurement is covered by this Title;
in Section C, all other entities whose procurement is covered by this Title;
in Section D, the services, other than construction services, covered by this Title;
in Section E, the construction services covered by this Title; and
in Section F, any general notes.
No procuring entity may prepare, design, or otherwise structure or divide any procurement in order to avoid the obligations under this Title;
Where procurement may result in contracts being awarded at the same time in the form of separate lots, account shall be taken of the total estimated value of all such lots. Where the aggregate value of the lots is equal to or exceeds a Party's thresholds as set out in the relevant Section, this Title shall apply to the awarding of such lots, with the exception of those lots the value of which is less than EUR 80 000 .
The Republics of the CA Party shall be able to adopt, develop, maintain or implement measures to promote opportunities or programs for procurement policies for the development of its minorities and its MSMEs including preferential rules, such as:
identifying MSMEs, registered as suppliers of the State;
establishing criteria of tiebreak allowing procuring entities to adjudicate a contract to a domestic MSME, which, participating individually or in consortium has submitted an offer of equal ranking as other suppliers.
Article 211
General Principles
With respect to any measure regarding covered procurement, a Party, including its procuring entities, shall not:
treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; nor
discriminate against a locally established supplier on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of the other Party.
Any supplier or service provider from a Republic of the CA Party established in one Member State of the European Union shall be accorded in all other Member States of the European Union treatment no less favourable than the treatment the latter accord to their own suppliers or service providers with respect to any measure regarding a covered procurement.
The Parties shall not introduce new requirements on the local establishment or registration of suppliers and service providers wishing to submit a tender in a covered procurement that would set suppliers and service providers of the other Party at a competitive disadvantage. Existing requirements will be subject to a review within ten years from the entry into force of this Agreement ( 32 ).
Use of Electronic Means
If a procuring entity conducts a covered procurement by electronic means, it shall:
ensure that the procurement is conducted using information technology systems and software, including those related to authentication and encryption of information, that are generally available and interoperable with other generally available information technology systems and software; and
maintain mechanisms that ensure the integrity of requests for participation and tenders, including establishment of the time and receipt and the prevention of inappropriate access.
Conduct of Procurement
Rules of Origin
Offsets
Article 212
Publication of Procurement Information
Each Party shall:
promptly publish any law, regulation, judicial decision or administrative ruling of general application, standard contract clauses that are mandated by a law or regulation and incorporated by reference in notices and tender documentation and procedures regarding covered procurement, and any modifications thereof, in officially designated electronic or paper media that are widely disseminated and remain readily accessible to the public;
provide, if so requested by any Party, further information concerning the application of such provisions;
list in Appendix 2 (Media for Publication of Procurement Information) to Annex XVI, the electronic or paper media in which the Party publishes the information described in paragraph (a); and
list in Appendix 3 (Media for Publication of Notices) to Annex XVI, the media in which the Party publishes the notices required by Articles 213, 215, paragraph 4, and Article 223, paragraph 2.
Article 213
Publication of Notices
Notice of Intended Procurement
Notice of Planned Procurement
Article 214
Conditions for Participation
Each Party may adopt or maintain procedures to declare ineligible for participation in the Party's procurements, either indefinitely or for a specified time, suppliers that the Party has found to have engaged in fraudulent or other illegal actions in relation to procurement. Upon request of the other Party, a Party shall identify, to the extent practicable, the suppliers determined to be ineligible under these procedures, and, where appropriate, exchange information regarding those suppliers or the fraudulent or illegal action.
Article 215
Qualification or Registration of Suppliers
Selective Tendering
Where a procuring entity intends to use selective tendering, the entity shall:
include in the notice of intended procurement at least the information specified in paragraph 1 of Appendix 4 (Notice of Intended Procurement), to Annex XVI and invite suppliers to submit a request for participation; and
provide, by the commencement of the time-period for tendering, at least the information specified in paragraph 2 of Appendix 4 (Notice of Intended Procurement) to Annex XVI to the qualified or registered suppliers.
List of Suppliers
A procuring entity may, if so foreseen by the Party's legislation, use a notice inviting suppliers to apply for inclusion in a list of suppliers as a notice of intended procurement, provided that:
the notice is published in accordance with paragraph 4 and includes the information required by Appendix 5 (Notice Inviting Interested Suppliers to Apply for Inclusion in a List of Suppliers) and as much of the information required by Appendix 4 (Notice of Intended Procurement) to Annex XVI as is available, and contains a statement that it constitutes a notice of intended procurement;
the procuring entity promptly provides to suppliers that have expressed an interest to the entity in a given procurement, sufficient information to permit them to assess their interest in the procurement, including all remaining information required by Appendix 4 (Notice of Intended Procurement) to Annex XVI, to the extent that such information is available; and
a supplier having applied for inclusion on a list of suppliers in accordance with paragraph 6, may be allowed to tender in a given procurement, where there is sufficient time for the procuring entity to examine whether it satisfies the conditions for participation.
Article 216
Technical Specifications
In prescribing the technical specifications for the goods or services being procured, a procuring entity shall, where appropriate:
set out the technical specifications in terms of performance and functional requirements, rather than design or descriptive characteristics; and
base the technical specifications on international standards, where these exist; otherwise, on national technical regulations, recognized national standards or building codes.
Article 217
Tender Documentation
Where, in the course of a procurement, a procuring entity modifies or amends the criteria or requirements set out in the notice of intended procurement or tender documentation provided to participating suppliers, it shall transmit in writing all such modifications:
to all suppliers that are participating at the time the information is amended, if known, and in all other cases, in the same manner as the original information; and
in adequate time to allow such suppliers to modify and re-submit amended tenders, as appropriate.
Article 218
Time Periods
A procuring entity shall, consistent with its own needs, provide sufficient time for suppliers to prepare and submit requests for participation and responsive tenders, taking into account such factors as the nature and complexity of the procurement, the extent of subcontracting anticipated, and the time for transmitting tenders from foreign as well as domestic points where electronic means are not used. Such time-periods, including any extension of the time periods, shall be the same for all interested or participating suppliers. The applicable time periods are set out in Appendix 6 (Time Periods) to Annex XVI.
Article 219
Negotiations
Each Party may provide for its procuring entities to conduct procurements through the negotiations procedure, in the following cases:
in the context of procurements in which they have indicated such intent in the notice of intended procurement; or
where it appears from the evaluation that no one tender is obviously the most advantageous in terms of the specific evaluation criteria set forth in the notices or tender documentation.
A procuring entity shall:
ensure that any elimination of suppliers participating in negotiations is carried out in accordance with the evaluation criteria set out in the notices or tender documentation; and
where negotiations are concluded, provide a common deadline for the remaining suppliers to submit any new or revised tenders.
Article 220
The Use of Limited Tendering or other equivalent Tendering Procedures
Provided that the tendering procedure is not used to avoid competition or to protect domestic suppliers, a procuring entity may award contracts by limited tendering or other equivalent tendering procedures in the following circumstances:
where,
no tenders were submitted, or no suppliers requested participation;
no tenders that conform to the essential requirements of the tender documentation were submitted;
no suppliers satisfied the conditions for participation; or
the tenders submitted have been collusive;
provided that the requirements of the tender documentation are notsubstantially modified;
where, for works of art, or for reasons connected with the protection of exclusive intellectual property rights, such as patents or copyrights, or proprietary information, or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;
for additional deliveries by the original supplier of goods and services that were not included in the initial procurement where a change of supplier for such additional goods or services:
cannot be made for economic or technical reasons such as requirements of inter-changeability or inter-operability with existing equipment, software, services or installations procured under the initial procurement; and
would cause significant inconvenience or substantial duplication of costs for the procuring entity;
for goods purchased on a commodity market;
where a procuring entity procures a prototype or a first good or service that is developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development. When such contracts have been fulfilled, subsequent procurements of goods or services shall be subject to this Title;
where additional construction services that were not included in the initial contract but fell under the objectives of the original tender documentation, have, due to unforeseeable circumstances, become necessary to complete the construction services described therein. However, the total value of contracts awarded for additional construction services may not exceed fifty per cent of the amount of the initial contract;
in so far as is strictly necessary where, for reasons of urgency brought about by events unforeseeable by the procuring entity, the goods or services could not be obtained in time by means of an open tendering procedure and the use of an open tendering procedure would result in serious injury to the procuring entity, the entity's program responsibilities, or the Party;
where a contract is awarded to a winner of a design contest provided that the contest has been organised in a manner that is consistent with the principles of this Title, and the participants are judged by an independent jury with a view to a design contract being awarded to a winner; or
in the cases established by each Party in Section F (General Notes) of Appendix 1 (Coverage) to Annex XVI.
Article 221
Electronic Auctions
Where a procuring entity intends to conduct a covered procurement using an electronic auction, the entity shall provide each participant, before commencing the electronic auction, with:
the automatic evaluation method, including the mathematical formula, that is based on the evaluation criteria set out in the tender documentation and that will be used in the automatic ranking or re-ranking during the auction;
the results of any initial evaluation of the elements of its tender where the contract is to be awarded on the basis of the most advantageous tender; and
any other relevant information relating to the conduct of the auction.
Article 222
Treatment of Tenders and Award of Contracts
Article 223
Transparency of Procurement Information
Article 224
Disclosure of Information
Article 225
Domestic Review Procedures
Where a body other than an authority referred to in paragraph 4 initially reviews a challenge, the Party shall ensure that the supplier may appeal the initial decision to an impartial administrative or judicial authority that is independent of the procuring entity whose procurement is the subject of the challenge. A review body that is not a court shall either be subject to judicial review or have procedural guarantees that provide for:
the procuring entity shall respond in writing to the challenge and disclose all relevant documents to the review body;
the participants to the proceedings (hereinafter referred to as "the participants") shall have the right to be heard prior to a decision of the review body being made on the challenge;
the participants shall have the right to be represented and accompanied;
the participants shall have access to all proceedings; and
decisions or recommendations relating to challenges by suppliers shall be provided, within a reasonable time, in writing, with an explanation of the basis for each decision or recommendation.
Each Party shall adopt or maintain procedures that provide for:
prompt interim measures to preserve the supplier's opportunity to participate in the procurement. Such interim measures may result in suspension of the procurement process. The procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account when deciding whether such measures should be applied. Just cause for not acting shall be provided in writing; and
corrective action or compensation for the loss or damages suffered, in accordance with each Party's legislation, in cases where a review body has determined that there has been a breach or a failure as set out in paragraph 1.
Article 226
Modifications and Rectifications of Coverage
Where a Party has the intention of modifying its coverage of procurement under this Title, the Party shall:
notify the other Party or Parties concerned in writing; and
include in the notification a proposal of appropriate compensatory adjustments to the other Party to maintain a level of coverage comparable to that existing prior to the modification.
Notwithstanding subparagraph 1(b), a Party does not need to provide compensatory adjustments where:
the modification in question is a minor amendment or rectification of a purely formal nature; or
the proposed modification refers to an entity over which the Party has effectively eliminated its control or influence.
The Parties may make minor amendments or rectifications of a purely formal nature to their coverage under this Title, in accordance with the provisions of Title XIII (Specific Tasks in Trade Matters of the Bodies established under this Agreement) of Part IV of this Agreement.
If the EU Party or the Republic of the CA Party concerned does not agree that:
the adjustment proposed under subparagraph 1(b) is adequate to maintain a comparable level of mutually agreed coverage;
the proposed modification is a minor amendment or a rectification under subparagraph 2(a); or
the proposed modification refers to an entity over which the Party has effectively eliminated its control or influence under subparagraph 2(b),
it must object in writing within thirty days of receipt of the notification referred to in paragraph 1 or be deemed to have agreed to the adjustment or proposed modification including for the purposes of Title X (Dispute Settlement) of Part IV of this Agreement.
Article 227
Cooperation and Technical Assistance on Government Procurement
The Parties agree that it is in their common interest to promote mutual cooperation and technical assistance initiatives on issues related to government procurement. In this sense, the Parties have identified a number of cooperation activities which are set out in Article 58 of Title VI (Economic and Trade Development) of Part III of this Agreement.
TITLE VI
INTELLECTUAL PROPERTY
CHAPTER 1
Objectives and principles
Article 228
Objectives
The objectives of this Title are to:
ensure an adequate and effective protection of intellectual property rights in the territories of the Parties, taking into consideration the economical situation and the social or cultural need of each Party;
promote and encourage technology transfer between both regions in order to enable the creation of a sound and viable technological base in the Republics of the CA Party; and
promote technical and financial cooperation in the area of intellectual property rights between both regions.
Article 229
Nature and Scope of Obligations
Intellectual Property and Public Health:
the Parties recognise the importance of the Doha Declaration on the TRIPS Agreement and Public Health adopted on 14 November, 2001 by the Ministerial Conference of the World Trade Organisation. In interpreting and implementing the rights and obligations under this Title, the Parties shall ensure consistency with this Declaration;
the Parties shall contribute to the implementation and respect the Decision of the WTO General Council of 30 August, 2003 on Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, as well as the Protocol amending the TRIPS Agreement, done at Geneva on 6 December, 2005.
For the purposes of this Agreement, intellectual property rights embody copyright, including copyright in computer programs and in databases, and related rights; rights related to patents; trademarks; trade names; industrial designs; layout-designs (topographies) of integrated circuits; geographical indications, including designations of origin; plant varieties and protection of undisclosed information;
for the purposes of this Agreement, as regards unfair competition, protection will be granted in accordance with Article 10bis of the Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967) (hereinafter referred to as the "Paris Convention").
Article 230
Most Favoured Nation and National Treatment
In accordance with Articles 3 and 4 of the TRIPS Agreement and subject to the exceptions foreseen in those provisions, each Party shall accord to the nationals of the other Party:
a treatment no less favourable than that it accords to its own nationals with regard to the protection of intellectual property; and
any advantage, favour, privilege or immunity it grants to the nationals of any other country with regard to the protection of intellectual property.
Article 231
Transfer of Technology
Article 232
Exhaustion
The Parties shall be free to establish their own regime for exhaustion of intellectual property rights, subject to the provisions of the TRIPS Agreement.
CHAPTER 2
Standards concerning intellectual property rights
Article 233
Protection Granted
The Parties shall comply with:
the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations (Rome, 1961) (hereinafter referred to as the "Rome Convention");
the Berne Convention for the Protection of Literary and Artistic Works (1886, lastly amended in 1979) (hereinafter referred to as the "Berne Convention");
the World Intellectual Property Organisation Copyright Treaty (Geneva, 1996) (hereinafter referred to as the "WCT"); and
the World Intellectual Property Organisation Performances and Phonograms Treaty (Geneva, 1996) (hereinafter referred to as the "WPPT").
Article 234
Duration of Authors' Rights
The Parties agree that for the calculation of the term of protection of author's rights, the rules established in Article 7 and 7bis of the Berne Convention shall apply for the protection of literary and artistic works, with the proviso that the minimum duration of the terms of protection defined in paragraphs 1, 2, 3 and 4 of Article 7 of the Berne Convention shall be of seventy years.
Article 235
Duration of Related Rights
The Parties agree that for the calculation of the term of protection of the rights of performers, producers of phonograms and broadcasting organizations, the provisions established in Article 14 of the Rome Convention shall apply with the proviso that the minimum duration of the terms of protection defined in Article 14 of the Rome Convention shall be of fifty years.
Article 236
Collective Management of Rights
The Parties recognise the importance of the performance of the collecting societies, and the establishment of arrangements between them, with the purpose of mutually ensuring easier access and delivery of content between the territories of the Parties, and the achievement of a high level of development with regard to the execution of their tasks.
Article 237
Broadcasting and Communication to the Public ( 34 )
Article 238
International Agreements
The European Union and the Republics of the CA Party shall make all reasonable efforts to:
ratify or accede to the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks (Madrid, 1989); and
comply with the Trademark Law Treaty (Geneva, 1994).
Article 239
Registration Procedure
The EU Party and the Republics of the CA Party shall provide for a system for the registration of trademarks in which each final decision taken by the relevant trademark administration is duly reasoned and in writing. As such, reasons for the refusal to register a trademark shall be communicated in writing to the applicant who will have the opportunity to contest such refusal and to appeal a final refusal before court. The EU Party and the Republics of the CA Party shall also introduce the possibility to oppose trademark applications. Such opposition proceedings shall be contradictory.
Article 240
Well-Known Trademarks
Article 6bis of the Paris Convention shall apply, mutatis mutandis, to goods or services that are not identical or similar to those identified by a well-known trademark, provided that the use of that trademark in relation to those goods or services would indicate a connection between those goods or services and the owner of the trademark, and provided that the interests of the owner of the trademark are likely to be damaged by such use. For greater certainty, the Parties may also apply this protection to unregistered well known trademarks.
Article 241
Exceptions to the Rights Conferred by a Trademark
The Parties may establish limited exceptions to the rights conferred by a trademark, such as the fair use of descriptive terms. Such exceptions shall take into account the legitimate interests of the owner of the registered trademark and of third parties.
Article 242
General Provisions
Article 243
Scope and Coverage
Article 244
System of Protection
The legislation of the Parties shall contain elements such as:
a register listing geographical indications protected in their respective territories;
an administrative process verifying that geographical indications identify a good as originating in a territory, region or locality of one of the Parties, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin;
a requirement that a registered name shall correspond to a specific product or products for which a product specification is laid down, which can only be amended by due administrative process;
control provisions applying to the production of the good or goods;
a right for any operator established in the area and who submits to the system of controls to use the protected name provided that the product conforms to the corresponding specification;
a procedure involving publication of the application that allows the legitimate interests of prior users of names, whether those names are protected as a form of intellectual property or not, to be taken into account.
Article 245
Established Geographical Indications
By the entry into force of this Agreement, in accordance with Article 353, paragraph 5 of Part V, the Parties shall: ( 35 )
have finalised the opposition and examination procedures, at least with respect to those geographical indication applications listed in Annex XVII (List of Names to be Applied for Protection as Geographical Indications in the Territory of the Parties) that were not opposed or for which any opposition was rejected due to formal reasons in the course of national registration proceedings;
have initiated the procedures for protecting the geographical indications listed in Annex XVII (List of Names to be Applied for Protection as Geographical Indications in the Territory of the Parties) and the time periods for submitting oppositions have expired, with respect to those geographical indication applications listed in Annex XVII that were opposed, and the oppositions were found to be prima facie meritorious in the course of national registration proceedings;
protect the geographical indications that have been granted protection as such, according to the level of protection established in this Agreement.
Article 246
Protection Granted
Geographical indications listed in Annex XVIII (Protected Geographical Indications), as well as those added pursuant to Article 247, shall as a minimum be protected against:
the use of any means in the designation or presentation of a good that indicates or suggests that the good in question originates in a geographical area other than the true place of origin in a manner which misleads the public as to the geographical origin of the good;
the use of a protected geographical indication for the same products that are not originating from the designated place of the geographical indication in question even if the true origin of the product is indicated or if the protected name is translated or accompanied by an expression such as 'style', 'type', 'imitation', 'like' or similar;
any other practice that misleads the consumer as to the true origin of the product or any other use that constitutes an act of unfair competition in the manner set forth in Article 10bis of the Paris Convention.
Article 247
Addition of New Geographical Indications
Such geographical indications, following their successful examination by the competent national or regional authorities, shall be included in Annex XVIII (Protected Geographical Indications) in accordance with the relevant rules and procedures for the Association Council.
Article 248
Relationship between Geographical Indications and Trademarks
Article 249
Right of Use of Geographical Indications
Once a geographical indication is protected under this Agreement in a Party different from the Party of origin, the use of such protected name shall not be subject to any registration of users in such Party.
Article 250
Dispute Settlement
No Party shall have any recourse to challenge the final decision issued by a national or regional competent authority regarding the registration or protection of a geographical indication, under Title X (Dispute Settlement) of Part IV of this Agreement. Any claim against the protection of a geographical indication shall be conducted under the available judicial instances established under each Party's domestic or regional legislation.
Article 251
International Agreements
The European Union and the Republics of the CA Party shall make all reasonable efforts to adhere to the Hague Agreement Concerning the International Registration of Industrial Designs (Geneva Act, 1999).
Article 252
Requirements for Protection
Article 253
Exceptions
Article 254
Rights Conferred
Article 255
Term of Protection
Article 256
Invalidity or Refusal of Registration
A design may only be refused for registration or declared invalid for compelling and important reasons, which, subject to each Party's legislation, may comprise:
if the design does not correspond to the definition under Article 252, paragraph 1;
if, by virtue of a court decision, the right holder is not entitled to the design;
if the design is in conflict with a prior design which has been made available to the public after the date of filing of the application or, if a priority is claimed, the date of priority of the design, and which is protected from a data prior to the said date by a registered design or an application for a design;
if a distinctive sign is used in a subsequent design, and the law of the Party concerned governing that sign confers to the right holder of the sign, the right to prohibit such use;
if the design constitutes an unauthorised use of a work protected under the copyright law of the Party concerned;
if the design constitutes an improper use of any of the items listed in Article 6ter of the Paris Convention or of badges, emblems and escutcheons other than those covered by said Article 6ter and which are of particular public interest in a Party;
if the disclosure of the industrial design is contrary to public order or morality.
Article 257
Relationship to Copyright
A design protected by a design right, registered in a Party in accordance with this Section, may also be eligible for protection under the law of copyright of that Party as from the date on which the design was created or fixed in any form.
Article 258
International Agreements
Article 259
Plant Varieties
CHAPTER 3
Enforcement of intellectual property rights
Article 260
General Obligations
Those measures, procedures and remedies shall be fair, proportionate and equitable, and shall not be unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted delays ( 39 ).
Article 261
Entitled Applicants
The Parties shall recognise as persons entitled to seek application of the measures, procedures and remedies referred to in this Section and in Part III of the TRIPS Agreement:
the holders of intellectual property rights in accordance with the provisions of the applicable law; and
federations and associations as well as exclusive licensees and other duly authorised licensees, insofar as permitted by and in accordance with the provision of applicable law. The term "licensee" shall include the licensee of any one or more of the exclusive intellectual property rights encompassed in a given intellectual property.
Article 262
Evidence
The Parties shall take such measures as are necessary, where a right holder has presented reasonably available evidence to support its claim that his intellectual property right has been infringed on a commercial scale and has specified evidence relevant to the substantiation of its claims which lies in the control of the opposing party, to enable the competent judicial authorities to order, where appropriate and, if so foreseen by the applicable law, following an application, that the opposing party must produce such evidence, subject to the protection of confidential information.
Article 263
Measures for preserving Evidence
The judicial authorities shall have the authority, on application by a party who has presented reasonably available evidence to support its claim that its intellectual property right has been or is about to be infringed, to order prompt and effective provisional measures to preserve relevant evidence in regard to the alleged infringement, subject to the protection of confidential information. Such measures may include the detailed description, with or without the taking of samples, or the physical seizure of the infringing goods, and, in appropriate cases, the materials and implements used in the production and/or distribution of these goods and the documents relating thereto. Those measures may be taken, if necessary, without the other party being heard, in particular where any delay is likely to cause irreparable harm to the right holder or where there is a demonstrable risk of evidence being destroyed.
Article 264
Right of Information
The Parties may provide that the judicial authorities shall have the authority, unless this would be out of proportion to the seriousness of the infringement, to order the infringer to inform the right holder of the identity of third persons involved in the production and distribution of the infringing goods or services and of their channels of distribution.
Article 265
Provisional and Precautionary Measures
Article 266
Corrective Measures
Each Party shall provide that:
its judicial authorities have the authority to order, at the request of the applicant and without prejudice to any damages due to the right holder by reason of the infringement, the destruction of the goods that have been found to be pirated or counterfeit, or other appropriate measures to definitively remove those goods from the channels of commerce;
its judicial authorities have the authority to order in appropriate cases that materials and implements that have been principally used in the manufacture or creation of such pirated or counterfeit goods be, without compensation of any sort, destroyed or, in exceptional circumstances, disposed of outside the channels of commerce, in such a manner as to minimize the risks of further infringements. In considering requests for such corrective measures, the Party's judicial authorities may take into account, inter alia, the gravity of the infringement, as well as the interests of third parties holding ownership, possessory, contractual, or secured interests.
Article 267
Damages
The judicial authorities shall have the authority to order the infringer to pay the right holder damages adequate to compensate for the injury the right holder has suffered because of an infringement of that person's intellectual property right by an infringer who knowingly, or with reasonable grounds to know, engaged in infringing activity. In appropriate cases, the Parties may authorise the judicial authorities to order recovery of profits and/or payment of pre-established damages, even where the infringer did not knowingly, or with reasonable grounds to know, engage in infringing activity.
Article 268
Legal Costs
The Parties shall ensure that reasonable and proportionate legal costs and other expenses incurred by the successful party shall, as a general rule, be borne by the unsuccessful party unless equity does not allow this, in accordance with domestic legislation.
Article 269
Publication of Judicial Decisions
The Parties may provide that, in legal proceedings instituted for infringement of an intellectual property right, the judicial authorities may order, at the request of the applicant and at the expense of the infringer, appropriate measures for the dissemination of the information concerning the decision, including displaying the decision and publishing it in full or in part. The Parties may provide for other additional publicity measures which are appropriate to the particular circumstances, including prominent advertising.
Article 270
Presumption of Ownership
For the purposes of applying the measures, procedures and remedies provided for under this Title, it shall be sufficient for the right holders of copyrights or related rights with regard to their protected subject matter, in the absence of proof to the contrary, for their name to appear on the work in the usual manner to be regarded as such and consequently to be entitled to institute infringement proceedings.
Article 271
Criminal Sanctions
The Parties shall provide for criminal procedures and penalties to be applied at least in cases of wilful trademark counterfeiting or copyright piracy on a commercial scale. Remedies available shall include imprisonment and/or monetary fines sufficient to provide a deterrent, consistently with the level of penalties applied for crimes of a corresponding gravity. In appropriate cases, remedies available shall also include the seizure, forfeiture and destruction of the infringing goods and of any materials and implements the predominant use of which has been in the commission of the offence. The Parties may provide for criminal procedures and penalties to be applied in other cases of infringement of intellectual property rights, in particular where they are committed wilfully and on a commercial scale.
Article 272
Limitations on Liability for Service Providers
The Parties agree that they will maintain the type of limitations of responsibility of service providers they currently foresee in their respective legislation, namely:
for the EU Party: those foreseen in Directive 2000/31/EC on electronic commerce;
for the Republics of the CA Party: those adopted domestically in order to comply with their international obligations.
A Party may delay giving effect to the provisions of this Article for a period of no longer than three years, beginning on the date of entry into force of this Agreement.
Article 273
Border Measures
CHAPTER 4
Institutional provisions
Article 274
Sub-Committee on Intellectual Property
The functions of the Sub-Committee shall include:
recommending to the Association Committee for approval by the Association Council, the modification of the list of geographical indications to Annex XVIII (Protected Geographical Indications);
exchanging information on geographical indications for the purpose of considering their protection in accordance with this Agreement, as well as on geographical indications which cease to be protected in their country of origin;
promoting technology transfer from the EU Party to the Republics of the CA Party;
defining the priority areas in which initiatives shall be directed in the areas of technology transfer, research and development and the build-up of human capital;
keeping an inventory or a registry of the programs, activities or initiatives in progress, in the field of intellectual property, with emphasis on transfer of technology;
make any relevant recommendations to the Association Committee with regard to matters of their competence; and
any other issue instructed by the Association Committee.
Article 275
Cooperation and Technical Assistance on Intellectual Property
The Parties agree that it is in their common interest to promote mutual cooperation and technical assistance initiatives on issues related to this Title. In this sense, the Parties have identified a number of cooperation activities which are set out in Article 55 of Title VI (Economic and Trade Development) of Part III of this Agreement.
Article 276
Final Provisions
TITLE VII
TRADE AND COMPETITION
Article 277
Definitions
For the purpose of this Title:
"Competition laws" means:
for the EU Party, Articles 101, 102, and 106 of the Treaty on the Functioning of the European Union, Council Regulation (EC) No. 139/2004 on the control of concentrations between undertakings, and their Implementing Regulations and Amendments;
for the CA Party, the Central American Competition Regulation (hereinafter referred to as "the Regulation") which shall be established according to Article 25 of the Protocolo al Tratado General de Integración Económica Centroamericana (Protocolo de Guatemala) and Article 21 of the Convenio Marco para el Establecimiento de la Unión Aduanera Centroamericana (Guatemala, 2007);
until such time as the Regulation is adopted in conformity with Article 279, "competition laws" means the national competition laws of each of the Republics of the CA Party adopted or maintained in compliance with Article 279; and
any changes that the abovementioned instruments may undergo after the entry into force of this Agreement.
"Competition authority" means:
for the EU Party, the European Commission;
for the CA Party, a Central American Competition Body to be established and designed by the CA Party in its Competition Regulation; and
until such time as the Central American Competition Body is established and becomes operational in compliance with Article 279, "competition authority" means the national competition authorities of each of the Republics of the CA Party.
Article 278
Principles
The Parties therefore agree that the following are incompatible with this Agreement, in so far as they may affect trade between the Parties:
agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings, which have as their object or effect the prevention, restriction or distortion of competition ( 40 ) as specified in their respective competition laws;
any abuse by one or more undertakings of a dominant position or a substantial market power or notable market participation, as specified in their respective competition laws; and
concentrations between undertakings, which significantly impede effective competition, as specified in their respective competition laws.
Article 279
Implementation
Article 280
Public Enterprises and Enterprises Entrusted with Special or Exclusive Rights including Designated Monopolies
Article 281
Exchange of Non Confidential Information and Enforcement Cooperation
Article 282
Cooperation and Technical Assistance
The Parties agree that it is in their common interest to promote technical assistance initiatives related to competition policy and law enforcement activities. This cooperation is addressed in Article 52 of Title VI (Economic and Trade Development) of Part III of this Agreement.
Article 283
Dispute Settlement
The Parties shall not have recourse to dispute settlement procedures under Title X (Dispute Settlement) of Part IV of this Agreement for matters arising under this Title.
TITLE VIII
TRADE AND SUSTAINABLE DEVELOPMENT
Article 284
Context and Objectives
Article 285
Right to Regulate and Levels of Protection
Article 286
Multilateral Labour Standards and Agreements
The Parties, in accordance with their obligations as members of the ILO, reaffirm their commitments to respect, promote, and realise in good faith and in accordance with the ILO Constitution, the principles concerning the fundamental rights which are the subject of the fundamental ILO Conventions, namely:
the freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced or compulsory labour;
the effective abolition of child labour; and
the elimination of discrimination in respect of employment and occupation.
The Parties reaffirm their commitment to effectively implement in their laws and practice the fundamental ILO Conventions contained in the ILO Declaration of Fundamental Principles and Rights at Work of 1998, which are the following:
Convention 138 concerning Minimum Age for Admission to Employment;
Convention 182 concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour;
Convention 105 concerning the Abolition of Forced Labour;
Convention 29 concerning Forced or Compulsory Labour;
Convention 100 concerning Equal Remuneration for Men and Women Workers for Work of Equal Value;
Convention 111 concerning Discrimination in Respect of Employment and Occupation;
Convention 87 concerning Freedom of Association and Protection of the Right to Organise; and
Convention 98 concerning the Application of the Principles of the Right to Organise and to Bargain Collectively.
Article 287
Multilateral Environmental Standards and Agreements
The Parties reaffirm their commitment to effectively implement in their laws and practice the multilateral environmental agreements to which they are parties including:
the Montreal Protocol on Substances that Deplete the Ozone Layer;
the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal;
the Stockholm Convention on Persistent Organic Pollutants;
the Convention on International Trade in Endangered Species of Wild Fauna and Flora (hereinafter referred to as "CITES");
the Convention on Biological Diversity;
the Cartagena Protocol on Biosafety to the Convention on Biological Diversity; and
the Kyoto Protocol to the United Nations Framework Convention on Climate Change ( 43 ).
Article 288
Trade Favouring Sustainable Development
The Parties shall endeavour to:
consider those situations in which the elimination or the reduction of obstacles to trade would benefit trade and sustainable development, taking into account, in particular, the interactions between environmental measures and market access;
facilitate and promote trade and foreign direct investment in environmental technologies and services, renewable-energy and energy-efficient products and services, including through addressing related non-tariff barriers;
facilitate and promote trade in products that respond to sustainability considerations, including products that are the subject of schemes such as fair and ethical trade schemes, eco-labelling, organic production, and including those schemes involving corporate social responsibility and accountability; and
facilitate and promote the development of practices and programmes aiming at fostering appropriate economic returns from the conservation and sustainable use of the environment, such as ecotourism.
Article 289
Trade in Forest Products
In order to promote the sustainable management of forest resources, the Parties commit to work together to improve forest law enforcement and governance and to promote trade in legal and sustainable forest products through instruments that may include, inter alia: effective use of CITES with regard to endangered timber species; certification schemes for sustainably harvested forest products; regional or bilateral Forest Law Enforcement Governance and Trade ("FLEGT") Voluntary Partnership Agreements.
Article 290
Trade in Fish Products
To this end, the Parties undertake to:
adhere to and effectively implement the principles of the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December, 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, in relation to: sustainable use, conservation and management of straddling fish stocks and highly migratory fish species; international cooperation between States; support of scientific advice and research; implementation of effective monitoring, control and inspection measures; and the duties of the flag and port States, including compliance and enforcement;
cooperate, including with and within the relevant Regional Fisheries Management Organisations, in order to prevent Illegal, Unreported and Unregulated ("IUU") fishing, including by adopting effective tools to implement control and inspection schemes to ensure full compliance with conservation measures;
exchange scientific and non-confidential trade data, to exchange experiences and best practices in the field of sustainable fisheries and, more generally, to promote a sustainable approach to fisheries.
Article 291
Upholding Levels of Protection
Article 292
Scientific Information
The Parties recognise the importance, when preparing and implementing measures aimed at protecting the environment or health and safety at work, of taking account of scientific and technical information, and relevant international standards, guidelines or recommendations, while acknowledging that when there are threats of serious or irreversible damage, the lack of full scientific certainty shall not be used as reason for postponing protective measures.
Article 293
Sustainability Review
The Parties commit to jointly reviewing, monitoring and assessing the contribution of Part IV of this Agreement, including cooperation activities under Article 302, to sustainable development.
Article 294
Institutional and Monitoring Mechanism
Article 295
Civil Society Dialogue Forum
Article 296
Government Consultations
Article 297
Panel of Experts
Article 298
Composition of the Panel of Experts
Article 299
Rules of Procedure
The terms of reference of the Panel of Experts shall be:
"to examine whether there is a failure by a Party to comply with the obligations set out under Articles 286, paragraph 2, 287, paragraphs 2, 3 and 4 and 291 of this Title, and to make non-binding recommendations for solution of the matter. In case of matters concerning the enforcement of legislation, the terms of reference of the Panel of Experts shall be to determine if there is a sustained or recurring failure by a Party to effectively implement its obligations."
Article 300
Initial Report
After receiving any written comments, the Panel, on its own initiative or on the request of either Party to the procedure, may:
where relevant, request the views of the Parties to the procedure on the written comments;
reconsider its report; or
make any further consideration that it considers appropriate.
The Panel's final report shall include a discussion of any arguments included in the Parties' written comments.
Article 301
Final Report
Article 302
Cooperation and Technical Assistance on Trade and Sustainable Development
The cooperation and technical assistance measures related to this Title are established in Title VI (Economic and Trade Development) of Part III of this Agreement.
TITLE IX
REGIONAL ECONOMIC INTEGRATION
Article 303
General Provisions
Article 304
Customs Procedures
Article 305
Technical Barriers to Trade
In the area of technical regulations and conformity assessment procedures:
the Parties agree that the Member States of the European Union will ensure that products originating in Central America which have been legally placed on the market of one Member State of the European Union, can also be marketed in the other Member States of the European Union, provided that the product provides an equivalent level of protection of the various legitimate interests involved (principle of mutual recognition);
in this respect, the Member States of the European Union will accept, provided that the product provides an equivalent level of protection of the various legitimate interests involved, that a product which has fulfilled the conformity assessment procedures required by one of the Member States of the European Union, can be placed on the market of the other Member States of the European Union, without having to undergo an additional conformity assessment procedure.
Article 306
Sanitary and Phytosanitary Measures
The aim of this Article is to:
promote conditions to allow goods subjected to sanitary and phytosanitary measures to freely move within Central America and the EU Party;
promote the harmonisation and improvement of sanitary and phytosanitary requirements and procedures in the CA Party and the EU Party, including to achieve the use of a single import certificate, a single list of establishments, a single sanitary import check and a single fee for products imported from the EU Party into the CA Party;
endeavour to ensure the mutual recognition of the verifications carried out by the Republics of the CA Party in any Member State of the European Union.
For products included in List 1 of Annex XIX, the above obligation will apply no later than two years after the entry into force of this Agreement.
For products included in List 2 of Annex XIX, the above obligation will apply no later than five years after the entry into force of this Agreement.
Article 307
Implementation
TITLE X
DISPUTE SETTLEMENT
CHAPTER 1
Objective and scope
Article 308
Objective
The objective of this Title is to avoid and settle any dispute between the Parties concerning the interpretation or application of Part IV of this Agreement, and that the Parties, where possible, arrive at a mutually satisfactory solution.
Article 309
Scope
CHAPTER 2
Consultations
Article 310
Consultations
CHAPTER 3
Dispute settlement procedures
Article 311
Initiation of the Panel Procedure
Article 312
Establishment of the Panel
Article 313
Panel Ruling
Article 314
Compliance with the Panel Ruling
Article 315
The Reasonable Period of Time for Compliance
Article 316
Review of any Measure taken to Comply with the Panel Ruling
Article 317
Temporary Remedies in case of Non-Compliance
Article 318
Review of any Measure taken to Comply After the Suspension of Obligations
Article 319
Rules of Procedure
Unless the disputing Parties agree otherwise, within five days from the date of establishment of the Panel, the terms of reference of the Panel shall be:
"to examine, in the light of the relevant provisions of Part IV of this Agreement, the matter referred to in the request for establishment of the Panel, in order to rule in regard to the compatibility of the measure at issue with the provisions referred to in Article 309 of Title X (Dispute Settlement) and to issue a ruling on the subject matter in accordance with Article 313 of Title X (Dispute Settlement)."
Article 320
Information and Technical Advice
Article 321
Amicus Curiae
Natural or legal persons with an interest in the subject matter residing or established in the disputing Parties' territories are authorised to submit amicus curiae briefs for the Panel's possible consideration in accordance with the Rules of Procedure.
Article 322
Rules and Principles of Interpretation
Article 323
Common Provisions regarding the Panel Rulings
CHAPTER 4
General provisions
Article 324
Mutually Satisfactory Solution
The disputing Parties may reach a mutually satisfactory solution to a dispute under this Title at any time. They shall notify the Association Committee of any such solution. Upon notification of the mutually satisfactory solution, the procedure shall be terminated.
Article 325
List of Panelists
Article 326
Relation with WTO Obligations
Article 327
Time Periods
Article 328
Adoption and Modification of the Rules of Procedure and the Code of Conduct
TITLE XI
MEDIATION MECHANISM FOR NON-TARIFF MEASURES
CHAPTER 1
Scope
Article 329
Scope
The Mediation Mechanism shall not apply to any measure or other matter arising under:
Title VIII on Trade and Sustainable Development;
Title IX on Regional Economic Integration;
Integration processes of the EU Party and of the Republics of the CA Party;
Matters in which dispute settlement procedures have been excluded; and
Provisions of an institutional nature in this Agreement.
CHAPTER 2
Procedure under the mediation mechanism
Article 330
Initiation of the Procedure
Article 331
Selection of the Mediator
Article 332
Rules of the Mediation Procedure
CHAPTER 3
Implementation
Article 333
Implementation of a Mutually Agreed Solution
CHAPTER 4
General provisions
Article 334
Relationship to Title X on Dispute Settlement
Article 335
Time Periods
Any time period referred to in this Title may be modified by mutual agreement of the Parties to the procedure.
Article 336
Confidentiality of Information
Article 337
Costs
TITLE XII
TRANSPARENCY AND ADMINISTRATIVE PROCEDURES
Article 338
Cooperation on Increased Transparency
The Parties agree to cooperate in relevant bilateral and multilateral fora to increase transparency, including through the elimination of bribery and corruption in matters covered by Part IV of this Agreement.
Article 339
Publication
Article 340
Contact Points and Exchange of Information
Article 341
Administrative Proceedings
Each Party shall administer all measures of general application referred to in Article 339 in a consistent, impartial and reasonable manner. More specifically, when applying those measures to specific persons, goods, services or establishments of a Party in specific cases, each Party shall:
endeavour to provide persons directly affected by a proceeding with reasonable notice when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in controversy;
afford such interested persons a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and
ensure that its procedures are based on law.
Article 342
Review and Appeal
Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
a reasonable opportunity to support or defend their respective positions; and
a decision based on the evidence and submissions of record or, where required by its law, the record compiled by the administrative authority.
Article 343
Specific Rules
The provisions of this Title are without prejudice to any specific rules established in other provisions of this Agreement.
Article 344
Transparency in Subsidies
TITLE XIII
SPECIFIC TASKS IN TRADE MATTERS OF THE BODIES ESTABLISHED UNDER THIS AGREEMENT
Article 345
Specific Tasks of the Association Council
The Association Council may, when it relates to trade-related matters:
modify, in fulfilment of the objectives of Part IV of this Agreement:
the lists of goods contained in Annex I (Elimination of Customs Duties), with the object of incorporating one or more goods into the tariff reduction schedule;
the Schedules attached to Annex I (Elimination of Customs Duties) in order to accelerate tariff dismantling;
Appendix 1, Appendix 2 and Appendix 3 to Annex I (Elimination of Customs Duties);
Appendixes 1, 2, 2A, 3, 4, 5 and 6 to Annex II (Concerning the Definition of the Concept of "Originating Products" and Methods of Administrative Cooperation);
Annex XVI (Government Procurement);
Annex XVIII (Protected Geographical Indications);
Annex XIX (Lists of Products Referred to in paragraph 4 of Article 306);
Annex XXI (Sub-Committees);
issue interpretations of the provisions of Part IV of this Agreement; and
take such other action in the exercise of its functions as the Parties may agree.
Article 346
Specific Tasks of the Association Committee
The Association Committee shall have, in particular, the following functions when dealing with trade-related matters:
assist the Association Council in the performance of its functions regarding trade-related matters;
be responsible for the proper implementation and application of the provisions of Part IV of this Agreement. In this respect, and without prejudice to the rights established in Title X (Dispute Settlement) and Title XI (Mediation Mechanism for Non-Tariff Measures) of Part IV of this Agreement, any Party may refer for discussion within the Association Committee any issue relating to the application or interpretation of Part IV of this Agreement;
oversee the further elaboration of the provisions of Part IV of this Agreement as necessary and evaluate the results obtained from its application;