Article XVIII of the GATS shall apply and is hereby incorporated into and made part of this Agreement.
Article 6.7. Domestic Regulation
1. In sectors where specific commitments are undertaken, each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. (a) Each Party shall maintain or institute, as soon as practicable, judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier of another Party, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review.
(b) The provisions of subparagraph (a) shall not be construed to require a Party to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.
3. Where authorisation is required by a Party for the supply of a service, the competent authorities of that Party shall, within a reasonable period of time after the submission of an application is considered complete under that Party’s domestic laws, rules and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of that Party shall provide, without undue delay, information concerning the status of the application.
4. Each Party shall ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures, in sectors in which a Party has undertaken specific commitments, are based on objective and transparent criteria such as competence and the ability to supply the service.
5. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures do not constitute unnecessary barriers to trade in services, the Joint Committee shall take a decision aiming at incorporating into this Agreement any disciplines developed in the WTO in accordance with paragraph 4 of Article VI of the GATS. The Parties may also, jointly or bilaterally, decide to develop further disciplines.
6. (a) In sectors in which a Party has undertaken specific commitments, pending the entry into force of a decision incorporating WTO disciplines for these sectors pursuant to paragraph 5, and, if agreed between Parties, disciplines developed jointly or bilaterally under this Agreement pursuant to paragraph 5, the Party shall not apply qualification requirements and procedures, technical standards and licensing requirements and procedures that nullify or impair such specific commitments in a manner which is:
(i) more burdensome than necessary to ensure the quality of the service; or
(ii) in the case of licensing procedures, in itself a restriction on the supply of the service.
(b) In determining whether a Party is in conformity with the obligation under subparagraph (a), account shall be taken of international standards of relevant international organisations (10) applied by that Party.
7. Each Party shall provide for adequate procedures to verify the competence of professionals of another Party.
Article 6.8. Recognition
1. For the purpose of the fulfilment of its relevant standards or criteria for the authorisation, licensing or certification of service suppliers, each Party shall give due consideration to any requests by another Party to recognise the education or experience obtained, requirements met, or licences or certifications granted in that other Party. Such recognition may be based upon an agreement or arrangement with that other Party, or otherwise be accorded unilaterally.
2. Where a Party recognises, by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted, in the territory of a non-party, that Party shall afford another Party adequate opportunity to negotiate its accession to such an agreement or arrangement, whether existing or future, or to negotiate a comparable agreement or arrangement with it. Where a Party accords recognition unilaterally, it shall afford adequate opportunity for another Party to demonstrate that the education or experience obtained, requirements met, or licences or certifications granted, in the territory of that other Party should also be recognised.
3. Any such agreement or arrangement or unilateral recognition shall be in conformity with the relevant provisions of the WTO Agreement, in particular paragraph 3 of Article VII of the GATS.
Article 6.9. Movement of Natural Persons
1. This Article applies to measures affecting natural persons who are service suppliers of a Party, and natural persons of a Party who are employed by a service supplier of a Party, in respect of the supply of a service.
2. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of a Party, nor shall it apply to measures regarding nationality, residence or employment on a permanent basis.
3. Natural persons covered by a specific commitment shall be allowed to supply the service in accordance with the terms of that commitment.
4. This Chapter shall not prevent a Party from applying measures to regulate the entry of natural persons of another Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment. (11)
Article 6.10 . Transparency
Paragraphs 1 and 2 of Article III and Article III bis of the GATS shall apply and are hereby incorporated into and made part of this Agreement.
Article 6.11. Monopolies and Exclusive Service Suppliers
Paragraphs 1, 2 and 5 of Article VIII of the GATS shall apply and are hereby incorporated into and made part of this Agreement.
Article 6.12. Business Practices
Article IX of the GATS shall apply and is hereby incorporated into and made part of this Agreement.
Article 6.13. Payments and Transfers
Article XI of the GATS shall apply and is hereby incorporated into and made part of this Agreement.
Article 6.14. Restrictions to Safeguard the Balance of Payments
1. The Parties shall endeavour to avoid the imposition of restrictions to safeguard the balance of payments.
2. Paragraphs 1 to 3 of Article XII of the GATS shall apply and are hereby incorporated into and made part of this Agreement.
3. A Party adopting or maintaining such restrictions shall promptly notify the Joint Committee.
Article 6.15. Exceptions
Article XIV and paragraph 1 of Article XIV bis of the GATS shall apply and are hereby incorporated into and made part of this Agreement.
Article 6.16. Schedules of Specific Commitments
1. Each Party shall set out in a Schedule the specific commitments it undertakes under Articles 6.4 (Market Access), 6.5 (National Treatment) and 6.6 (Additional Commitments). With respect to sectors where such commitments are undertaken, each Schedule shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments referred to in Article 6.6 (Additional Commitments); and
(d) where appropriate, the timeframe for implementation of such commitments and the date of entry into force of such commitments.
2. Measures inconsistent with both Articles 6.4 (Market Access) and 6.5 (National Treatment) shall be subject to paragraph 2 of Article XX of the GATS.
3. The Parties’ Schedules of Specific Commitments are set out in Annex XI (Schedule of Specific Commitments).
Article 6.17. Modification of Schedules of Commitments
1. The Parties shall, upon written request by a Party, hold consultations to consider any modification or withdrawal of a specific commitment in the requesting Party’s Schedule of Specific Commitments. The consultations shall be held within three months from the receipt of the request. In the consultations, the Parties shall aim to ensure that a general level of mutually advantageous commitments no less favourable to trade than that provided for in the Schedule of Specific Commitments prior to such consultations is maintained.
2. Modifications of Schedules are subject to Articles 12.1 (Joint Committee) and 14.2 (Amendments). Such modifications may only take place three years after the entry into force of this Agreement.
Article 6.18. Review
With the objective of further liberalising trade in services between them and promoting their interests on a mutually advantageous basis, the Parties shall review at least every two years, or more frequently if so agreed, their Schedules of Specific Commitments and their Lists of MFN Exemptions, taking into account, in particular, any unilateral liberalisation and on-going work under the auspices of the WTO. The first review shall take place no later than three years from the entry into force of this Agreement.
Article 6.19. Annexes
The following Annexes form an integral part of this Chapter:
(a) Annex XI (Schedules of Specific Commitments);
(b) Annex XII (Lists of MFN-Exemptions);
(c) Annex XIII (Financial Services);
(d) Annex XIV (Telecommunications Services);
(e) Annex XV (Movement of Natural Persons Supplying Services);
(f) Annex XVI (Maritime Transport and Related Services);
(g) Annex XVII and (Energy Related Services);
Chapter 7. Investment
Article 7.1. Investment Conditions
1. The Parties shall endeavour to provide stable, non-discriminatory, and transparent investment conditions for investors of the other Parties that make or seek to make investments in their territories.
2. The Parties shall admit investments by investors of the other Parties in accordance with their domestic laws, rules and regulations. They recognise that it is inappropriate to encourage investment by relaxing health, safety or environmental standards.
Article 7.2. Investment Promotion
The Parties recognise the importance of promoting investment flows as a means for achieving economic growth and development, including:
(a) Appropriate means of identifying investment opportunities and information channels on investment regulations;
(b) Exchange of information on measures to promote investment abroad; and
(c) The furthering of a legal environment conducive to increased investment flows.
Article 7.3. Review
The Parties affirm their commitment to review issues related to investment in the Joint Committee no later than five years from the entry into force of this Agreement, including the right of establishment of investors of a Party in the territory of another Party, taking into consideration the treatment accorded in free trade agreements and agreements on economic integration concluded by a Party with a non-party.
Chapter 8. INTELLECTUAL PROPERTY
Article 8. Protection of Intellectual Property Rights
1. The Parties shall grant and ensure adequate, effective and non-discriminatory protection of intellectual property rights, and provide for measures for the enforcement of such rights against infringement thereof, including counterfeiting and piracy, in accordance with the provisions of this Chapter, Annex XVIII (Protection of Intellectual Property), and the international agreements referred to therein. Parties understand that, in accordance with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter referred to as the “TRIPS Agreement”), the grant of rights by the Parties is subject to compliance with the substantive conditions for acquisition of such rights.
2. The Parties shall accord to nationals of another Party treatment no less favourable than that they accord to their own nationals. Exemptions from this obligation must be in accordance with the substantive provisions of Articles 3 and 5 of the TRIPS Agreement.
3. The Parties shall grant to nationals of another Party treatment no less favourable than that accorded to nationals of a non-party. If a Party concludes a trade agreement containing provisions on the protection of intellectual property rights with a non-party, notified under Article XXIV of the GATT 1994, it shall notify the other Parties without delay and accord to them treatment no less favourable than that provided under such agreement. The Party concluding such an agreement shall, upon request by another Party, negotiate the incorporation into this Agreement of provisions of the agreement granting a treatment no less favourable than that provided under that agreement. Exemptions from this obligation must be in accordance with the substantive provisions of the TRIPS Agreement, in particular Articles 4 and 5.
4. The Parties agree, upon request of any Party to the Joint Committee, to review the provisions, implementation and application, of this Chapter and Annex XVIII (Protection of Intellectual Property), and to discuss issues related to intellectual property, with a view, inter alia, to further improving the protection and enforcement of intellectual property rights.
Chapter 9. GOVERNMENT PROCUREMENT
Article 9.1. Transparency
1. The Parties shall enhance the mutual understanding of each other’s government procurement laws and regulations with a view to progressively liberalise their respective procurement markets on the basis of non-discrimination and reciprocity.
2. The Parties shall publish, or otherwise make publicly available, their laws, regulations, judicial decisions, and administrative rulings of general application as well as their respective international agreements to which they are a party that may affect their procurement markets. The Parties shall promptly respond in English to specific questions and provide, upon request, information to each other on such matters.
Article 9.2. Further Negotiations
If a Party grants to a non-party additional benefits with regard to the access to its procurement markets after the entry into force of this Agreement, it shall without delay notify the other Parties. The Party granting additional benefits shall, upon request by another Party, enter into negotiations to extend similar benefits to the other Parties on a reciprocal basis.
Article 9.3. Review
The Joint Committee shall review this Chapter and examine the possibility of developing the Parties’ commitments in government procurement within three years from the entry into force of this Agreement.
Chapter 10. COMPETITION
Article 10.1. Rules of Competition
1. The Parties recognise that the following practices of enterprises are incompatible with the proper functioning of this Agreement insofar as they may affect trade between the Parties:
(a) agreements, decisions by associations and concerted practices which have as their object or effect the prevention, restriction or lessening of competition; and
(b) abuse of dominant position that would prevent or restrict competition.
2. The provisions of paragraph 1 shall also apply to state owned enterprises or enterprises with special or exclusive rights, in so far as the application of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them under domestic laws, rules and regulations.
3. The rights and obligations under this Chapter shall only apply between the Parties.
Article 10.2. Cooperation
1. The competent authorities of the Parties concerned shall cooperate and consult in their dealings with anti-competitive practices referred to in paragraph 1 of Article 10.1 (Rules of Competition), with the aim of putting an end to such practices or their adverse effects on trade, in a manner consistent with their domestic laws, rules and regulations.
2. Cooperation may include exchange of pertinent information that is available to the Parties. No Party shall be required to disclose information that is confidential according to its domestic laws, rules and regulations.
Article 10.3. Consultations
1. A Party may request consultations regarding any matter under this Chapter. The addressed Party or Parties shall promptly reply to the request and enter into consultations in good faith. The Parties shall make every attempt to arrive at a mutually acceptable solution.
2. If a Party considers that a given practice continues to affect trade in the sense of Article 10.1 (Rules of Competition), after cooperation or consultations, it may refer the matter to the Joint Committee. The Parties involved shall give to the Joint Committee all the assistance required in order to examine the matter and, where appropriate, eliminate the practice objected to.
Article 10.4. Dispute Settlement
No Party may have recourse to dispute settlement under Chapter 13 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 11. TRADE AND SUSTAINABLE DEVELOPMENT
Article 11.1. Context and Objectives
1. The Parties recall the Declaration of the United Nations Conference on the Human Environment of 1972, the Rio Declaration on Environment and Development of 1992, Agenda 21 on Environment and Development of 1992, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the Rio+20 Outcome Document “The Future We Want” of 2012, the UN Sustainable Development Summit Outcome Document “Transforming Our World: the 2030 Agenda for Sustainable Development” of 2015, the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up of 1998, the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006 and the ILO Declaration on Social Justice for a Fair Globalization of 2008.
2. The Parties recognise that economic development, social development and environmental protection are interdependent and mutually supportive pillars of sustainable development. They recognise the benefits of cooperation on trade-related labour and environmental issues as part of a global approach to trade and sustainable development.
3. The Parties reaffirm their commitment to the promotion of international trade with the aim to contribute to the objective of sustainable development and to integrate and reflect this objective in the Parties’ trade relations.
4. The Parties agree that the provisions of this Chapter shall not be used for protectionist trade purposes.
Article 11.2. Scope
1. Except as otherwise provided in this Chapter, this Chapter shall apply to measures adopted or maintained by the Parties affecting trade-related and investment- related aspects of labour and environmental issues.
2. The reference to labour in this Chapter includes the issues relevant to the Decent Work Agenda as agreed in the ILO.
Article 11.3. Right to Regulate and Levels of Protection
1. Recognising the right of each Party, subject to the provisions of this Agreement, to establish its own levels of labour and environmental protection, and to adopt or modify accordingly its relevant laws, rules, regulations and policies, each Party shall seek to ensure that its laws, rules, regulations, policies or practices provide for and encourage high levels of labour and environmental protection, consistent with standards, principles and agreements referred to in Articles 11.5 (International Labour Standards and Agreements) and 11.6 (Multilateral Environmental Agreements and Environmental Principles) and shall strive to improve the level of protection provided for in those laws, rules, regulations and policies.
2. The Parties recognise the importance of taking account of scientific, technical and other information, and relevant international standards, guidelines and recommendations, in preparing and implementing measures related to environment and labour conditions that affect trade and investment between them.
Article 11.4. Upholding Levels of Protection In the Application and Enforcement of Laws, Rules, Regulations or Standards
1. A Party shall not fail to effectively enforce its labour and environmental laws, rules, regulations or standards in a manner affecting trade or investment between the Parties.
2. Subject to Article 11.3 (Right to Regulate and Levels of Protection), a Party shall not:
(a) weaken or reduce the level of environmental or labour protection provided by its laws, rules, regulations or standards with the sole intention to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory; or
(b) waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws, rules, regulations or standards in order to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory.
Article 11.5. International Labour Standards and Agreements
1. The Parties recall the obligations deriving from membership of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up adopted by the International Labour Conference at its 86th Session in 1998, to respect, to promote and realise the principles concerning the fundamental rights, namely:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) elimination of all forms of forced or compulsory labour;
(c) effective abolition of child labour; and
(d) elimination of discrimination in respect of employment and occupation.
2. The Parties reaffirm their commitment, under the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, to recognise full and productive employment and decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation and to promote the development of international trade in a way that is conducive to full and productive employment and decent work for all.
3. The Parties recall the obligations deriving from membership of the ILO to effectively implement the ILO Conventions which they have ratified and to make continued and sustained efforts towards ratifying the core ILO Conventions and other conventions classified as “up-to-date” by the ILO.
4. The Parties reaffirm that, as set out in the ILO Declaration on Social Justice for a Fair Globalization adopted by the International Labour Conference at its 97th session in 2008, the violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage.
Article 11.6. Multilateral Environmental Agreements and Environmental Principles
The Parties reaffirm their commitment to the effective implementation in their laws, rules, regulations and practices of the multilateral environmental agreements to which they are a party, as well as their adherence to environmental principles reflected in the international instruments referred to in Article 11.1 (Context and Objectives).
Article 11.7. Promotion of Trade and Investment Favouring Sustainable Development
1. The Parties shall strive to facilitate and promote investment, trade in and dissemination of goods and services that contribute to sustainable development, such as environmental technologies, sustainable renewable energy, as well as goods and services that are energy efficient, eco-labelled or subject to schemes such as fair and ethical trade. Related non-tariff barriers will be addressed as part of these efforts.
2. The Parties agree to exchange views and may consider, jointly or bilaterally, cooperation in this area. They shall encourage such cooperation between enterprises.
Article 11.8. Trade In Forest-Based Products
1. In order to promote the sustainable management of forest resources and thereby, inter alia, reduce greenhouse emissions from deforestation and degradation of natural forests and peat lands related to activities beyond the forest sector, the Parties will work together in the relevant multilateral fora in which they participate and through existing bilateral cooperation if applicable to improve forest law enforcement and governance and to promote trade in legal and sustainable forest-based, agricultural and mining products.
2. Useful instruments to achieve this objective may include, inter alia, effective use of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) with regard to endangered timber species, certification schemes for sustainably harvested forest products, bilateral Forest Law Enforcement Governance and Trade (FLEGT) Voluntary Partnership Agreements.
Article 11.9. Cooperation In International Fora
The Parties shall strive to strengthen their cooperation on trade and investment- related labour and environmental issues of mutual interest in relevant bilateral, regional and multilateral fora in which they participate.
Article 11.10. Implementation and Consultations
1. The Parties shall designate the administrative entities, which shall serve as contact points for the purposes of implementing this Chapter.
2. A Party may, through the contact points, request expert consultations or consultations within the Joint Committee regarding any matter under this Chapter. The Parties shall make every attempt to arrive at a mutually acceptable solution of the matter. Where relevant, subject to the agreement of the Parties, they can seek advice of the relevant international organisations or bodies.
3. No Party may have recourse to arbitration under Chapter 13 (Dispute Settlement) for any matter arising under this Chapter.
Article 11.11. Review
This Chapter shall be subject to periodic review within the framework of the Joint Committee. The Parties shall discuss progress achieved in pursuing the objectives set out in this Chapter and consider relevant international developments in order to identify areas where further action could promote these objectives.
Chapter 12. Institutional Provisions
Article 12. Joint Committee
1. The Parties hereby establish the EFTA-Philippines Joint Committee (hereinafter referred to as the "Joint Committee") comprising of representatives of each Party. The Parties shall be represented by senior officials delegated by them for this purpose.
2. The Joint Committee shall:
(a) Oversee the implementation of this Agreement;
(b) Keep under review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between the EFTA States and the Philippines;
(c) Oversee the further elaboration of this Agreement;
(d) Set-up sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks;