4. From 1 July 2003, each Party shall only grant preferential tariff treatment to goods originating in the classified Chapters 61 and 62 of the Harmonized System.
5. In respect of imports of goods exceeding the amounts specified in paragraph 1, each party granted only the preferential tariff treatment set out in the schedule of tariff relief compliance with the established rule of origin in the annex to article 6-03.
Chapter IV. Agriculture
Article 4-01. Definitions
For purposes of this chapter:
Agricultural product means a product described in any of the following chapters, headings or subheadings of the Harmonized System:
(descriptions are provided for purposes of reference)
a) Chapters 1 to 24 (except fish and fish products); and
b) Heading or subheading / Description
2905.43 Mannitol.
2905.44 Sorbitol.
2918.14 Citric acid.
2918.15 Salts and esters of citric acid.
2936.27 Vitamin C and derivatives thereof.
33.01 Essential oils.
35.01 to 35.05 Albuminoidal substances, modified starches and starch products.
3809.10 Finishing agents and finishing agents.
3823.60 Sorbitol n.e.c.
41.01 to 41.03 Raw hides and skins.
43.01 Raw furskins.
50.01 to 50.03 Raw silk and silk waste.
51.01 to 51.03 Wool and fur.
52.01 to 52.03 Cotton, raw cotton, cotton waste and carded or combed cotton.
53.01 Flax, raw.
53.02 Hemp, raw.
fish and fish products: fish or crustaceans, molluscs or any other aquatic invertebrates, marine mammals and their derivatives, described in any of the following chapters, headings or subheadings of the Harmonized System:
(Descriptions are provided for reference purposes).
Chapter, heading or subheading / Description
03 Fish and crustaceans, mollusks and other aquatic invertebrates.
05.07 Ivory, tortoise shell, marine mammals, horns, antlers, hooves, hoofs, claws, claws and beaks, and products thereof.
05.08 Coral and similar products.
05.09 Natural sponges of animal origin.
05.11 Products of fish or crustaceans, mollusks or any other marine invertebrate; dead animals of Chapter 3.
15.04 Fats or oils and their fractions, of fish or marine mammals.
16.03 Extracts and juices other than of meat.
16.04 Prepared or preserved fish.
16.05 Prepared or preserved crustaceans or mollusks and other marine invertebrates.
2301.20 Flours, meals, pellets of fish.
Export subsidies:
a) The provision by Governments or by government agencies, to an enterprise and a branch of production, to producers of an agricultural product to a cooperative or other association of such producers, or to a marketing board of direct subsidies, including payments in kind, contingent upon export performance;
b) The sale or export for disposal by Governments or their agencies of non-commercial stocks of agricultural products at a price lower than the comparable price charged to buyers in the domestic market of a like product;
c) Payments on the export of agricultural commodities financed by virtue of governmental measures, whether or not a charge on the public accounts, including payments financed from the proceeds of a levy imposed on the agricultural product concerned or to an agricultural product from which the exported product is derived;
d) The award of subsidies to reduce the costs of marketing exports of agricultural products (except the easy availability of promotion and advice on exports), including the costs of handling, processing and other processing costs and the costs of international transport and freight;
e) The costs of the internal transport and freight charges on export shipments, established or imposed by Governments on terms more favourable than for domestic shipments; and
f) Agricultural subsidies contingent on their incorporation in exported products; and
Tariff rate on the excess of: the tariff rate quota applies to the amounts exceeding the quantity specified in a tariff-quota.
Article 4-02. Scope
1. This section applies to measures relating to the Agricultural Trade adopted or maintained by any party.
2. In the event of any inconsistency between this chapter and any other provision of this Treaty, this chapter shall prevail to the extent of the inconsistency.
Article 4-03. International Obligations
A party, before taking a measure pursuant to an intergovernmental agreement on goods based on article XX (g) of the GATT 1994 and that may affect trade in agricultural products between the parties shall consult with the other party for avoiding nullification or impairment of a concession granted by that party in its schedule of tariff relief of this Treaty.
Article 4-04. Access to Markets
1. The parties agree to facilitate access to their respective markets through the reduction or elimination of barriers to trade in agricultural products, and undertake not to establish new obstacles to trade between them.
Quantitative restrictions and tariffs.
2. The Parties shall waive the rights granted under article XI: 2 (c) of the GATT 1994 and those rights as incorporated by article 3-09, with respect to any measure adopted or maintained on imports of agricultural products.
3. Notwithstanding any other provision of this Treaty, for the products contained in annex 1 to this article either party may maintain or adopt customs duties on the importation of those products, in accordance with its rights and obligations under the WTO Agreement.
4. Once a year after the Entry into Force of this Treaty, the Parties shall review, through the Committee on agricultural trade established under article 4-08; gradually eliminate tariffs on imports of agricultural products contained in annex 1 to this article.
5. Access of products set out in annex 2 to this article shall be governed in accordance with this annex.
6. A Party may not apply to agricultural products of the other party a tariff rate on the excess above the quota, as provided in the schedule of tariff relief agreed between the parties.
Restrictions on the return of tariffs on products exported where identical or similar conditions.
7. From the date of Entry into Force of this Treaty, no party may refund the amount of customs duties paid or waive or reduce the amount of customs duties owed in connection with any agricultural product imported into its territory that is:
a) Agricultural product substituted by an identical or similar subsequently exported to the territory of the other party; or
b) Substituted by an identical or similar product used as a material in the production of another good subsequently exported to the territory of the other party.
Article 4-05. Domestic Support
1. The Parties recognize that domestic support measures may be of crucial importance to their agricultural sectors, but may also affect distort trade and production. they recognise that may arise commitments on reduction of domestic agricultural support for multilateral negotiations within the framework of the WTO. thus if a Party decides to support its agricultural producers, shall endeavour to move towards domestic support policy that:
a) Have minimal or no trade distorting effects on trade or production; or
b) Are exempt from any domestic support reduction commitments that may be negotiated under the WTO.
2. The Parties also recognise that either party may modify its domestic support measures, including those that may be subject to reduction commitments, in accordance with its rights and obligations under the WTO Agreement.
Article 4-06. Export Subsidies
1. The parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall cooperate in an effort to achieve an agreement in the WTO framework.
2. Chapter IX (subject to unfair practices of international trade), from the Entry into Force of this Treaty, the parties may increase grants the above 7 per cent of the FOB value of exports.
3. From the date of tariffs on agricultural products originating reach zero-tariff relief under the programme, and in any case no later than 1 July 2007, the parties may maintain export subsidies on agricultural products in the reciprocal trade.
4. Notwithstanding the above, from the Entry into Force of this Treaty, the parties may maintain in their reciprocal trade export subsidies on agricultural products included in article 5 of the decree of export promotion 37-91 Number of Nicaragua and subject to tariff-quota according to the schedule of tariff relief.
Article 4-07. Technical Standards and Agricultural Marketing
1. Trade in agricultural products between the parties shall be subject to the provisions of chapter XIV (measures related to standardization).
2. The parties establish a committee on technical standards and agricultural marketing, comprising representatives of each, which shall meet annually or as otherwise agreed. the Committee shall review the operation of classification standards and quality agricultural affecting trade between the parties, and shall resolve issues that may arise regarding the operation of the standards. this committee will bring their activities to the Committee on agricultural trade established under article 4-08.
3. A Party shall accord to agricultural products imported from the other party a treatment no less favourable than that accorded to its agricultural products in the application of standards or marketing of agricultural techniques in aspects of packaging, degree, quality and size.
Article 4-08. Committee on Agricultural Trade
1. The parties establish a committee on agricultural trade, comprising representatives of each party.
2. The functions of the Committee shall include:
a) The monitoring and promoting cooperation on the implementation and administration of this chapter;
b) The establishment of a forum for the parties to consult on issues related to this chapter; that is conducted at least once a year and as the parties agree.
c) The submission of a report annually to the Commission on the implementation of this chapter; and
d) On a particular and expeditious possible mechanisms to include in the programme of tariff relief tariff subheading 0901.21, products falling within (and 0901.22 0901.90 orcoffee roasted) and submit to the Commission for its consideration.
Chapter V. Sanitary and Phytosanitary Measures
Article 5-01. Definitions
food additive: any substance that by itself is not normally consumed as food, nor used as a basic ingredient in food, whether or not it has nutritional value, and whose addition to food at the production, manufacturing, processing, preparation, treatment, packaging, packing, transport or storage stage, results directly or indirectly, by itself or its by-products, in a component of the food or affects its characteristics. This definition does not include contaminants or substances added to the food to maintain or improve nutritional qualities;
food: any processed, semi-processed or raw substance intended for human consumption, including beverages, chewing gum and any other substances used in its manufacture, preparation or treatment, as well as balanced substances intended for animal consumption (animal feed); but does not include cosmetics, tobacco or substances used solely as drugs;
animal: any vertebrate or invertebrate species, including aquatic and wild fauna;
harmonization: the establishment, recognition and application of common sanitary and phytosanitary measures by the Parties;
good: food, animals, plants, their products and by-products;
contaminant: any living substance or organism not intentionally added to food, which is present in such food as a result of the production (including operations carried out in agriculture, animal husbandry and veterinary medicine), manufacture, processing, preparation, treatment, packing, packaging, transport or storage of such food or as a result of environmental contamination;
disease: the infection, clinical or not, caused by one or more etiological agents of the diseases listed in the International Animal Health Code of the Office International des Epizooties;
risk assessment:
a. the likelihood of entry, establishment and spread of a disease or pest and the potential biological, agronomic and economic consequences; or
b. the likelihood of adverse effects on human, animal or plant life or health arising from the presence of food additives, contaminants, toxins or disease-causing organisms in a commodity;
food safety: the quality that ensures that food presents no risk to human or animal health;
scientific information: data or information derived from the use of scientific principles and methods;
sanitary or phytosanitary measure: a measure that a Party establishes, adopts, maintains or applies in its territory to:
a. protect life, human and animal health, as well as plant health from risks arising from the introduction, establishment or spread of a pest or disease; b. protect life, human and animal health, as well as plant health from risks arising from the introduction, establishment or spread of a pest or disease;
b. protect life, human and animal health, as well as plant health from risks resulting from the presence of a food additive, contaminant, toxin or pathogenic organism in a commodity;
c. to protect human life and health from risks arising from an organism causing a pest or disease carried by an animal, plant or a derivative thereof; or
d. to prevent or limit other damage from the introduction, establishment and spread of a pest or disease.
Sanitary and phytosanitary measures comprise all relevant laws, regulations, requirements and procedures, including criteria relating to the final good; process or production methods directly related to the good; testing, inspection, certification or approval procedures; relevant statistical methods; sampling procedures; risk assessment methods; packaging and labeling requirements directly related to food safety; and quarantine regimes, such as relevant requirements associated with the transport of animals or plants, or with the material necessary for their survival during transport;
appropriate level of sanitary or phytosanitary protection: the level of protection to life, human and animal health, and plant health that a Party considers appropriate;
international standards, guidelines or recommendations:
a. in relation to food safety, those of the Codex Alimentarius Commission, including those related to decomposition of products, elaborated by the Codex Alimentarius Committee on Fish and Fishery Products; with food additives, contaminants, hygienic practices, and methods of analysis and sampling;
b. in relation to animal health and zoonoses, those elaborated under the auspices of the Office International Epizootics;
c. in relation to plant health, those established under the auspices of the Secretariat of the International Plant Protection Convention; or
d. those established by other organizations
pest: a species, strain or biotype of plant, animal or pathogenic agent harmful or potentially harmful to plants, animals or their products;
pesticide: a substance intended to prevent, destroy, attract, repel or control any pest, including unwanted species of plants or animals, during the production, storage, transport, distribution and processing of food, plants and their products or animal feed, or which may be administered to animals to control ectoparasites. It also includes substances intended for use as plant growth regulators, defoliants, desiccants, fruit density reduction agents or sprout inhibitors and substances applied to crops before or after harvest to protect the product against deterioration during storage and transport. The term does not normally include fertilizers, nutrients of plant or animal origin, food additives or animal drugs;
approval procedure: a registration, certification, notification or other mandatory administrative procedure to approve the use of a food additive or establish a tolerance for a contaminant for defined purposes or under agreed conditions in a food, beverage or feedstuff prior to permitting its use or marketing when any of these contain the food additive or contaminant;
control or inspection procedure: a procedure used, directly or indirectly, to determine compliance with a sanitary or phytosanitary measure, including sampling, testing, inspection, verification, monitoring, auditing, conformity assessment, accreditation or other procedures involving physical examination of a good, the packaging of the good, or equipment or facilities directly related to the production, marketing or use of a good, but does not mean an approval procedure;
pesticide residue: a substance present in food, plant and plant products, or animal feedstuffs as a result of the use of a pesticide. The term includes any derivatives of a pesticide, such as conversion products, metabolites and reaction products and impurities considered to be of toxicological significance,
transport: the means of mobilization, the form of packaging and the mode of carriage, established in a sanitary or phytosanitary measure;
plant: living plants and parts thereof, including seeds and germplasm;
area of low pest or disease prevalence: an area designated by the competent authorities, which may include the whole of a country, part of a country, or the whole or parts of several countries, in which a given pest or disease is present to only a low degree, and which is subject to effective pest or disease surveillance and control or eradication measures; and
pest- or disease-free area: an area designated by the competent authorities, which may include the whole of a country, part of a country, or the whole or parts of several countries, in which a given pest or disease does not occur. A pest- or disease-free area may surround, be surrounded by, or be adjacent to an area-either within a part of a country or in a geographical region that may comprise all or parts of several countries-in which a specific pest or disease is known to occur but which is subject to regional control measures, such as the establishment of protection, surveillance and buffer zones that isolate or eradicate the pest or disease in question.
Article 5-02. Scope
In order to establish a framework of rules and disciplines that guide the development, adoption and implementation of sanitary and phytosanitary measures, nothing in this chapter applies to any measure of such a nature that may directly or indirectly affect trade between the parties.
Article 5-03. Fundamental Rights and Obligations
Sanitary and phytosanitary measures.
1. Each Party may establish; adopt, maintain or apply any sanitary or phytosanitary measure, including those relating to food safety and on the importation of any good from the territory of the other party, when does not comply with the applicable requirements, or does not meet the approval procedures, as well as those representing a higher level of protection than that which would be achieved by a measure based on international standards, guidelines or recommendations, provided that it is based on scientific principles.
Scientific principles.
2. Each Party shall ensure that any sanitary or phytosanitary measure that it maintains or establishes shall apply:
a) It is based on scientific principles taking into account, where appropriate, the relevant factors such as the different geographic conditions and technology;
b) Be maintained only where there is a scientific basis to support; and
c) Based on a risk evaluation to the appropriate circumstances.
Non-discriminatory treatment.
3. Each Party shall ensure that a sanitary or phytosanitary measure adopted, enforced, or maintained, not arbitrarily or unjustifiably discriminate between its goods and similar to the other party, or between goods of the other party and similar goods of another country, when conditions exist sanitary or phytosanitary identical or similar.
Disguised restrictions and unnecessary obstacles.
4. Neither party shall adopt or maintain apply sanitary and phytosanitary measures which constitute a disguised restriction on trade between the parties; or with a view to or with the effect of creating unnecessary obstacles to the same. in this context, they shall ensure that their sanitary and phytosanitary measures are implemented to the extent necessary to achieve its appropriate level of protection, taking into account the technical feasibility, economic and scientific principles.
Right to determine the level of protection.
5. Notwithstanding any other provision of this chapter each party may fix its appropriate level of sanitary or phytosanitary protection in accordance with article 5-06.
Support in other agencies.
6. Each Party shall ensure that any agency that support for the development and implementation of a sanitary or phytosanitary measure to act in a manner consistent with this chapter.
Article 5-04. International Standards and Standardisation Bodies
1. Each Party shall use as a reference framework for its sanitary and phytosanitary measures, the international standards, guidelines or recommendations, except when they do not constitute an effective or appropriate means to protect the life, health, human and animal and plant health, due to climatic factors, such as geographical or technological or scientifically justified reasons or because it is not the appropriate level of sanitary or phytosanitary protection.
2. The sanitary or phytosanitary measure of a Party that conforms to an international standard shall be presumed to be consistent with paragraphs 1 to 5 of Article 5-03.
3. Without prejudice to paragraph 1, each Party may adopt or maintain measures stricter than those provided for in the international standards, guidelines or recommendations, provided that it is based on scientific principles in order to achieve the appropriate level of sanitary and phytosanitary protection.
4. If a party has reason to believe that a sanitary or phytosanitary measure of another party is or may adversely affect its exports and the measure is not based on relevant international standards, guidelines or recommendations, may request to be informed of the reasons for the measure; and the other party shall do so in writing within a period of no more than 30 days.
5. Each Party shall, to the greatest extent possible, in the pertinent international standardization organizations, including the Codex Alimentarius Commission), the Office of Epizootics International and the International Convention for the protection of plants, with the aim of promoting the development and periodic review of international standards, guidelines and recommendations.
Article 5-05. Equivalence
1. Without reducing the level of protection to human life, health, animal and plant health established in its legislation and with a view to facilitating trade in goods, the parties will be equivalent to the maximum extent possible their respective sanitary or phytosanitary measures, taking into account the guidelines and recommendations of international standardization.
2. The importing Party shall accept the sanitary or phytosanitary measure adopted, enforced, or maintained by an exporting Party as equivalent to its own it objectively'proving where scientific information and risk assessment methods based on international standards agreed by them, that such measure achieves the appropriate level of sanitary or phytosanitary protection required by the importing Party.
3. Each Party shall accept the results of the sanitary and phytosanitary control procedures carried out in the territory of the other Party, provided that they offer satisfactory guarantees that the good complies with the sanitary or phytosanitary measures that are established, adopt or maintain applied in the territory of that Party.
4. In accordance with paragraph 3 shall be made available to the importing Party requesting access to carry out the procedures for control or inspection.
5. To develop a sanitary or phytosanitary measure, each Party shall consider the sanitary or phytosanitary measures relevant existing or proposed by the other party with the aim of harmonizing them.
6. At the request of a party, the parties shall enter into consultations to the recognition of equivalence of sanitary or phytosanitary measures based on specific international standards, guidelines or recommendations.