4. The provisions of this chapter shall take precedence over the other chapters, except in cases where reference is made to those chapters.
Article 13-03. Self-regulating Agencies
When a party requires that a financial institution or a Financial Services Service is member of the other party engages in, or have access to an agency autoregulado to provide a financial service in its territory or to him, the Party shall make every effort to that body complies with the obligations of this chapter.
Article 13-04. Right of Establishment
1. The Parties recognize the principle that investors of a party engaged in the business of providing financial services in their territory, they should be permitted to establish a financial institution in the territory of the other party, by any of the modalities for the establishment and operation of allowing.
2. Each party may impose, at the time of establishment, terms and conditions that are consistent with Article 13-06.
Article 13-05. Cross-border Trade
1. No restrictions of party increase its measures relating to cross-border trade in financial services by Financial Services Service of the other Party on the date of Entry into Force of this Treaty.
2. Each Party shall permit persons located in its territory and its nationals, wherever located, to purchase financial services from cross-border financial service suppliers of the other Party located in the territory of that other Party. This does not oblige a Party to allow such suppliers to do business or advertise in its territory. Subject to paragraph 1, each Party may define what is meant by "doing business" and "advertising" for purposes of this obligation.
3. Without prejudice to other means of prudential regulation of cross-border trade in Financial Services, a Party may require the registration of Financial Services Service of the other party and of financial instruments.
Article 13-06. National Treatment
1. Each Party shall accord to investors of the other party treatment no less favourable than that accorded in like circumstances to its own investors with respect to the establishment, expansion and acquisition, administration, management, operation and sale or other disposition of financial institutions and investments in financial institutions in its territory.
2. Each Party shall accord to financial institutions of the other party and to investments of investors of the other party in financial institutions treatment no less favourable than that accorded in like circumstances to its own financial institutions and to its own investments of investors in financial institutions, with respect to the establishment and acquisition, expansion, administration, management, operation, sale or other disposition of financial institutions and investments.
3. Where a Party permits the cross-border provision of a financial service shall, pursuant to article 13-05 Financial Services Service of the other party treatment no less favourable than that accorded in like circumstances to its own financial service providers with respect to the provision of such service.
4. The treatment that a Party shall accord to financial institutions and Financial Services Service of the other party, whether the same or different to that accorded to its own institutions or providers in like circumstances, is consistent with paragraphs 1 to 3, if affords equal competitive opportunities.
5. The treatment of a Party does not provide equal opportunities to compete in similar circumstances whether at a disadvantage Financial Institutions and Financial Services Service of the other party in their ability to provide financial services as compared with the ability of its own financial institutions and financial service providers of the party to provide such services.
Article 13-07. Most-favoured-nation Treatment
Each Party shall accord to investors of the other party in financial institutions of the other party and to investments of investors in financial institutions and Financial Services Service of another party treatment no less favourable than that accorded in like circumstances to investors in financial institutions and to investments of investors in financial institutions and Financial Services Service of the other party or in another country that is not a party.
Article 13-08. Recognition and Harmonization
1. In applying measures under this chapter, each party may recognize prudential measures of the other party or of a country that is not a party. such recognition may be:
a) Accorded unilaterally;
b) Achieved through harmonization or other means; or
c) Granted under an agreement with the other party or of a non- party.
2. The party that grants recognition of prudential measures under paragraph 1 shall provide adequate opportunity to the other party to demonstrate that circumstances exist in which there are or will exist equivalent regulations, monitoring and implementation of the regulation and, where appropriate, procedures for the sharing of information between the parties.
3. Where a Party grants recognition of prudential measures in accordance with paragraph 1 and the circumstances set out in paragraph 2 exist, that Party shall provide adequate opportunity for the other Party to negotiate accession to the agreement, or to negotiate a similar agreement.
Article 13-09. Exceptions
1. Nothing in this chapter shall be construed to prevent a Party from adopting or maintaining reasonable measures for prudential reasons, such as:
a) Protection of investors, depositors, participants in the financial market, holders or beneficiaries of policies or persons of fiduciary duties owed by a financial institution or a Financial Services service;
b) Maintaining security, integrity, responsibility or financial soundness of financial institutions or Financial Services service; or
c) Ensuring the integrity and stability of the financial system of a party.
2. Nothing in this chapter applies to non-discriminatory application of general measures taken by a public entity in the conduct of monetary policies or policies related credit or exchange rate policies. this paragraph shall not affect the obligations of any Party deriving from Article 16-05 16-08 and with respect to measures covered by chapter XVI (investment) or under article 13.
3. Article 13-06 does not apply to the issuance of exclusive rights that makes a party to a financial institution, to provide a Financial Services referred to in subparagraph (a) of paragraph 2 of article 13-02.
4. Notwithstanding paragraphs 1 to 3 of Article 13, a Party may prevent or limit transfers by a financial institution or a Financial Services Service, or those for the benefit of an affiliate of related to such person or institution or in such a service provider, through the fair and non-discriminatory application of measures relating to maintenance of security, integrity, responsibility or financial soundness of financial institutions or Financial Services Service. nothing in this paragraph shall be without prejudice to any other provision of this t ratado that permits a party to restrict transfers.
Article 13-10. Transparency
1. In addition to the provisions of article 18-02, each Party shall ensure that any measure taken on matters related to this chapter is officially issued or made known to the opportunity to which it was addressed by any other written means.
2. Regulatory authorities of each Party shall make available to interested persons completing its requirements for applications for the Provision of Financial Services.
3. At the request of the applicant, the regulatory authority shall inform the applicant of the status of its application. if such authority requires additional information from the applicant, it shall without undue delay.
4. Each of the regulatory authorities shall within a period not exceeding 120 days, an administrative measure with respect to a complete application relating to the provision of a financial service, submitted by an investor in a financial institution, by a financial institution or a Financial Services Service of the other party. the Authority shall notify the applicant without delay. an application shall not be considered complete until all relevant hearings are held and all necessary information is received. where it is not feasible to make a ruling within 120 days, the regulatory authority shall notify the applicant without undue delay and shall endeavour to make the decision within a reasonable time.
5. Nothing in this chapter requires a party to disclose or allow access to:
a) Information related to the accounts and financial affairs of individual customers of financial institutions or Financial Services service; or
b) Any confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or prejudice legitimate commercial interests of particular enterprises.
6. Each Party shall maintain or establish one or more information centres, within one year following the Entry into Force of this Treaty, to respond in writing as soon as possible to all reasonable inquiries from interested persons regarding general application of measures taken by that Party under this chapter.
Article 13-11. Financial Services Committee
1. The parties establish the Financial Services Committee composed of representatives of the Competent Authorities identified in the annex to this article.
2. The Committee shall:
a) Supervise the implementation of this chapter and its further development;
b) Consider issues regarding Financial Services that are submitted by a party;
c) Shall participate in the dispute settlement procedures in accordance with articles 13-19 and 13-20; and
d) To facilitate the exchange of information between supervisory authorities and cooperate in providing advice, on prudential regulation, ensuring the harmonization of regulatory frameworks as well as other policies, when it deems appropriate.
3. The Committee shall meet at least once a year to review the implementation of this chapter.
Article 13-12. Consultations
1. Any Party may request consultations with the other Party regarding any matter arising under this Agreement that affects financial services. the other party shall favourably consider that request. consulting the parties to the Committee shall make available the results of their consultations during meetings of the Tribunal.
2. In consultations under this article shall include representatives from the competent authorities identified in the annex to article 13-11.
3. A Party may request that regulatory authorities of the other party participate in consultations under this article or to discuss measures of general application of that other party which may affect the operations of financial institutions or Financial Services service in the territory of the party requested that the consultations.
4. Nothing in this article shall be construed to require regulatory authorities participating in consultations to disclose information under paragraph 3 or to act in a manner that would interfere with specific matters regulatory supervision, administration and implementation of measures.
5. Where, for the purpose of monitoring, information concerning a Party may require a financial institution in the territory of the other party or on Financial Services service in the territory of the other party, the party may have recourse to a regulatory authority responsible in that territory the other party to seek information.
Article 13-13. New Financial Services and Data Processing
1. Each Party shall permit a financial institution of the other party to provide any new financial service similar to those of a type that Party may provide for its financial institutions, in its legislation in like circumstances. a Party may determine the institutional and juridical form through which the service to be provided and may require authorization for the provision of the same. where such authorization is required, the decision shall be made within a reasonable time and may only be refused for prudential reasons.
2. Each Party shall allow a financial institutions of the other Party to transfer, for processing information, within or outside the territory of the Party, using any means authorized therein when necessary for carrying out the business activities of such institutions.
Article 13-14. Senior Management and Boards of Directors
1. No party may require financial institutions of another party to recruit staff of a particular nationality to senior management positions of business or other charges.
2. No party may require that the Board of Directors of a financial institution of the other party is incorporated by a simple majority exceeding the nationals of that Party, resident in its territory or a combination of the two.
Article 13-15. Reserves and Specific Commitments
1. Not later than one year after the Entry into Force This Treaty shall negotiate, the parties and included in the list of the annex to this article, reservations to articles 13-04, 13-05, 1306, 13-07, 13-13 and 13-14.
2. The parties, in the negotiations referred to in paragraph 1 shall seek to reach agreements aimed at ensuring an overall balance of concessions granted.
3. The parties undertake to progressively liberalise among themselves, any restriction or financial reserve included in the lists referred to in paragraph 1, with the aim of ensuring effective economic complementarity between them.
4. No party will increase the degree of inconsistency of the measure reserved in accordance with paragraph 1 after its entry in such lists.
5. Where a Party has set out in chapters X (general principles on trade in services) and Investment (XVI), a reserve the right of establishment, cross-border trade, National Treatment and most-favoured-nation treatment, new financial services and data processing business or senior management and boards of directors, the reservation shall be construed as references to articles 13-04, 13-05, 13-06, 13-07 13-13 13-14, and of this chapter, as the case may be, to the extent that the measure, sector and subsector activity or set out in the reservation covered by this chapter.
Article 13-16. Denial of Benefits
A Party may deny the partial or total the benefits of this chapter a Financial Services to service the other party or a Financial Services Service of the other party, subject to prior notification and consultation in accordance with articles 13-10 13-12 and, where the party establishes that the service is being provided by an enterprise that has no substantial business activities in the territory of any party or that is owned by persons of a non-party or under the control of the same.
Article 13-17. Transfers
1. Each Party shall permit all transfers relating to an investment of an investor of the other party in the territory of the Party to be made freely and without delay. such transfers include:
a) Profits, dividends, interests, capital gains, royalties, fees payments for administration, technical assistance and other fees; returns and other amounts in kind derived from the investment;
b) Products derived from the sale or the total or partial liquidation of the investment;
c) Payments made under a contract of which is a party to an investor or its investment;
d) Resulting payments of compensation for expropriation in accordance with article 16-09; or
e) Payments arising out of a dispute settlement procedure under Article 13-20.
2. Each Party shall permit transfers to be made in a freely convertible currency at the rate of exchange prevailing on the date of transfer to spot transactions in the currency to be transferred without prejudice to article 13-18.
3. No party may require its investors to transfers carried out their income, profits, or other profits or amounts derived from investments carried out in the territory of the other party, or attributable to them.
4. Notwithstanding paragraphs 1 and 2, each party may prevent a transfer through the equitable and non-discriminatory application of its laws in the following cases:
a) Bankruptcy or insolvency or the protection of the rights of creditors;
b) Issuance of securities, and trade operations;
c) Criminal or administrative offences;
d) Reports of transfers of currency or other monetary instruments;
e) Ensuring compliance with orders or awards in adjudicatory proceedings; or
f) Establishment of instruments and mechanisms to ensure the payment of taxes on income through such means as dividends as regards the retention or other items.
5. Paragraph 3 shall not be interpreted as an impediment to a party through the application of their legislation on an equitable, non-discriminatory and in good faith, impose any measure under subparagraphs (a) and (e) of paragraph 4.
Article 13-18. Safeguarding and Balance of Payments
1. Each Party may adopt or maintain a measure to suspend, by a reasonable time, all or some of the benefits contained in this chapter and in article 16-08, when:
a) The provisions of this article or chapter 16-08 is in serious economic or financial disturbance in the territory of the Party that is not possible to settle adequately through any other alternative measure; or
b) The balance of payments of a party, including the state of their monetary reserves, is seriously threatened or facing serious difficulties.
2. The party to suspend or intends to suspend benefits of this Chapter, shall be notified promptly to the competent authority of the other party:
a) What is the serious economic or financial disturbance caused by the application of this article or chapter 16-08, as appropriate, the nature and scope of the serious threats to its balance of payments;
b) The economic situation and the trade of the Party;
c) Alternative measures that are available to remedy the problem; and
d) Economic policies to take to address the problems mentioned in paragraph 1, as well as the direct relationship between them and the solution.
3. A measure adopted or maintained by a Party at any time shall:
a) To avoid unnecessary damage to the economic, commercial and financial interests of the other party;
b) Not impose greater burdens than necessary to deal with the resulting difficulties that the measure is adopted or maintained;
c) Temporal be progressively liberalized, and to the extent that the balance of payments, or the economic and financial situation of the party, as the case may be, improves;
d) Be applied by, at any time, such a measure to prevent discrimination between the parties; and
e) To be consistent with internationally accepted standards.
4. Any party to take a measure to suspend benefits under this chapter or under article 16-08, shall inform the other Party on the evolution of the events giving rise to the adoption of the measure.
5. For the purposes of this article, a reasonable time during which means that persist events described in paragraph 1.
Article 13-19. Settlement of Disputes between the Parties
1. In terms of this chapter, amending article XX (dispute settlement) applies to the settlement of disputes between the parties concerning this chapter.
2. The Financial Services Committee shall be by consensus a list of up to 10 individuals including up to five individuals of each Party who have the skills and necessary provisions to serve as arbitrators in disputes related to this chapter. members of the roster shall, in addition to satisfy the requirements set out in chapter XX (dispute settlement), have expertise or experience in financial matters arising from the exercise of responsibilities in the financial sector, or in its regulation.
3. For the purposes of the Constitution of the arbitral tribunal shall be used the list referred to in paragraph 2, except that warring parties agree that may be part of the arbitral tribunal individuals not included in the list provided that they comply with the requirements established in paragraph 2. the Chairman of the arbitral tribunal provided shall be selected from the roster.
4. In any dispute where the arbitral tribunal has found that a measure is inconsistent with the obligations of this chapter, where appropriate the suspension of benefits referred to in chapter XX (dispute settlement) and the measure affects:
a) Only the financial services sector, the complaining party may suspend benefits only in this sector;
b) The financial services sector and any other sectors, the complaining party may suspend benefits in the financial services sector that have an effect equivalent to the effect of the measure in the financial services sector; or
c) Any other sector except services, the complaining party may not suspend benefits in the financial services sector.
Article 13-20. Settlement of Disputes between an Investor and a Party of the other Party.
1. Except as provided in this article to make claims an investor litigants against a party in connection with the obligations under this Chapter shall be settled in accordance with section B of chapter XVI (investment). for this purpose, the provisions of section B of chapter XVI (investment) are incorporated into this chapter and are an integral part thereof.
2. Where the party against which the complaint has invoked any of the exceptions referred to in article 13-09, shall apply the following procedures:
a) The arbitral tribunal shall refer the matter to the Financial Services Committee for a decision. the Tribunal may not proceed pending receipt of a decision by the Committee under the terms of this article or 60 days after the date of receipt by the Committee; and
b) Upon receipt of the matter, the Committee shall decide whether and to which extent article 13-09 invoked the derogation is a valid defence to the claim of the investor and shall transmit a copy of its decision to the Tribunal and to the Commission. such decision shall be binding on the Tribunal.
Annex to Article 13-11. Competent authorities
1. The Financial Services Committee shall be composed of representatives appointed by that:
a) In the case of Mexico, the Ministry of Finance and Public Credit, or its successor; and
b) In the case of Nicaragua, the Ministry of Economy and Development, the Ministry of Finance, the Central Bank and the Superintendency of Banks, or their successors.
2. The principal representative of each Party shall where such authority designated for that purpose.
Chapter XIV. Measures Related to Standardization
Article 14-01. Definitions
1. For purposes of this chapter, the terms presented in the sixth edition of ISO / IEC guide 2: 1991 ", general terms and definitions related to their standardization and related activities, shall have the same meaning as used in this chapter, except that here are defined differently.
2. For purposes of this chapter:
Risk assessment: the assessment of potential harm to human health and safety, animal and plant or the environment could lead to a product or service being traded between the parties;
Make compatible: bring to a level, measures related to standardization different, but with the same extent, adopted by different standardisation bodies so that are identical or equivalent or have the effect of allowing goods and services are used interchangeably or for the same purpose, in order to enable the goods and services are traded between the parties;
Measures related to standardization: technical regulations or standards and conformity assessment procedures;
Standard means a document approved by a recognized institution that provides for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods, or services or related to methods of operation, and with which compliance is not mandatory. it may also include requirements of terminology, symbols, packaging, marking or labelling applicable to a product, service, process or production method, or related exclusively to them;
International Standard means a measure of standardization, or other guides or recommendations adopted by an international body standardisation and made available to the public;
Legitimate objectives: inter alia, security and protection of human life and health, animal and plant, of their environment and the prevention of practices which are likely to mislead consumers, including matters relating to the identification of goods or services, considering, inter alia, where appropriate, key factors such as climate geographicai, technological or scientific justification or infrastructure;
Standardizing body standardisation means a body whose activities are recognized by the Government of each Party, respectively;
International standards: standardizing body, a body open to the relevant bodies of at least the members of the WTO Agreement on Technical Barriers to Trade, including the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), the Commission of the Food Codex, the World Health Organization (WHO), the International Organization of Legal Metrology (OIML), or any other body designated by the parties;
Conformity assessment procedure procedure used any means, directly or indirectly, to determine that the requirements established by the relevant technical regulations or standards are fulfilled, including sampling, testing, inspection, evaluation, assurance of conformity, verification, certification, accreditation, registration or approval, employees for such purposes, but not means an approval procedure;
Approval procedure: the registration, notification or any other administrative process for the issuance of a compulsory licence so that a product or service is sold or used for purposes defined or under conditions laid down;
Administrative refusal: actions taken by a body of public administration of the importing Party, in the exercise of its powers, to prevent the entry into its territory a shipment of or the provision of services, for technical reasons;
Technical regulation means a document which lays down the characteristics of the goods, services or their related processes and production methods, including any applicable administrative provisions; and with which compliance is mandatory. it may also include requirements of terminology, symbols or packaging, labelling, product service applicable to a process, or production method, or related exclusively to them; and
Service means a service within the scope of this Treaty, except financial services.
Article 14-02. Scope
1. This chapter applies to measures relating to standardization, metrology and related actions that may directly or indirectly affect the trade in goods and services between them. the provisions of this chapter does not apply to sanitary and phytosanitary measures.
2. Each Party shall comply with the provisions of this chapter and shall take the necessary measures to ensure compliance by the State, regional and municipal governments, and shall take such measures as may be available to them in respect of accredited non-governmental standardizing bodies in its territory.
Article 14-03. Reaffirmation of International Rights and Obligations.
The parties reaffirm their rights and obligations existing under standardization measures related to the Agreement on Technical Barriers to Trade and other international agreements relating to the protection of life, safety, animal and plant, the environment and practices that prevent mislead consumers, of which the parties are party.
Article 14-04. Basic Rights and Obligations
1. The Parties shall develop, adopt, maintain or apply any measure on standardisation that have the purpose or effect of creating unnecessary obstacles to trade between them. to this end, each Party shall ensure that its measures relating to the normalization not more trade restrictive than necessary to achieve a legitimate objective, taking into account the risks that do not create the.
2. It shall be considered that measures relating to standardization create unnecessary obstacles to trade when:
a) The purpose of the demonstrable measure is to achieve a legitimate objective; and
b) Does not operate to exclude Goods and Services of the other party that legitimate meet that objective.
3. Notwithstanding any other provision of this chapter each Party may determine the level of protection it considers appropriate in pursuing its legitimate objectives.