2. Accordingly, the Parties agree to identify opportunities for cooperation to exchange information, experiences and best practices related to this matter.
Article 16.8. Responsible Business Conduct
1. Each Party shall encourage enterprises operating within its territory or jurisdiction to incorporate into their internal policies, principles and standards of responsible business conduct, which contribute to achieving sustainable development in its labour dimension, that are consistent with internationally recognized guidelines and principles that have been adopted or endorsed by that Party.
2. The Parties also commit to promote international norms and standards on human rights and business, including the framework of the 2011 UN Guiding Principles on Business and Human Rights.
3. Accordingly, the Parties agree to identify opportunities for cooperation to exchange information, experiences and best practices related to this matter.
Article 16.9. Cooperation
1. The Parties recognize the importance of cooperation as a mechanism to effectively implement this Chapter, increase opportunities to improve labor standards, and further advance common commitments on labor issues and decent work, including the well-being and quality of life of workers, and the principles and rights set forth in the ILO Declaration.
2. In the choice of areas of cooperation and the implementation of their activities, the Parties shall be guided by the following principles:
(a) consideration of each Party's priorities and available resources;
(b) broad participation of, and to the mutual benefit of, the Parties;
(c) relevance of capacity and skills development activities, including technical assistance between Parties to address labour protection issues and activities to promote innovative labour practices in the workplace;
(d) resource efficiency, including through the use of technology, as appropriate, to optimize resources used in cooperative activities;
(e) complementarity with existing regional and multilateral initiatives to address labour issues, and
(f) transparency and public participation.
3. Each Party shall seek the views and, as appropriate, the participation of stakeholders, including workers' and employers' representatives, in the identification of potential areas for cooperation and implementation of cooperative activities. Subject to the agreement of the Parties, cooperative activities may involve relevant regional or international organizations, such as the ILO, as well as non-Parties.
4. In addition to the cooperative activities set forth in this Article, the Parties shall, as appropriate, join together and take advantage of their respective memberships in regional and multilateral fora to promote their common interests in addressing labor issues.
5. The Parties may carry out cooperative activities in person or by any available technological means.
Article 16.10. Public Awareness and Procedural Safeguards
1. Each Party shall promote public awareness of its labour laws, including by ensuring that information related to its labour laws and the procedures for their implementation and enforcement are publicly available.
2. Each Party shall ensure that persons with a recognized interest in a particular matter under its legal system have appropriate access to impartial and independent adjudicatory bodies for the enforcement of that Party's labor law.
3. Each Party shall ensure that proceedings before such adjudicatory bodies for the enforcement of its labor law are fair, equitable and transparent, comply with due process, and do not entail unreasonable costs or unreasonable time limits or unwarranted delays, in accordance with each Party's legal system. Any hearing in such proceedings shall be public, except where the administration of justice provides otherwise, and in accordance with its legal system.
4. Parties to these jurisdictional proceedings shall have the right to file appeals and to seek review or appeal, as appropriate under their legal system.
5. Each Party shall provide procedures for the effective enforcement of the final decisions of its adjudicatory bodies in the proceedings referred to in the preceding paragraphs, in accordance with each Party's legal system.
Article 16.11. Public Communications
1. Each Party shall, through its designated contact point under Article 16.13.1, provide that written communications from a person or organization of that Party on matters related to this Chapter shall be received and considered in accordance with its domestic procedures. Accordingly, each Party shall make readily accessible and publicly available procedures, including deadlines for the receipt and consideration of written submissions.
2. A Party may provide in its procedures that, in order to be admitted for consideration, a communication shall, at a minimum:
(a) raise an issue directly related to this Chapter;
(b) clearly identify the person or organization submitting the communication;
(c) explain, to the fullest extent possible, how, and to what extent, the matter raised affects trade or investment between the Parties;
(d) be sent only through the contact point of the Parties, and
(e) not refer to a matter pending before an international body.
3. If a communication raises issues that are already the subject of judicial or administrative proceedings of the Party at the time of its receipt, the response of the Party concerned shall be limited to providing information identifying the pending case and its status.
4. Each Party shall:
(a) consider the issues raised in the communication and provide a timely response to the submitting applicant, including in writing, as appropriate, and
(b) make the communication and the results of its consideration available to the other Party.
5. A Party may request from the applicant that submitted the communication such additional information as may be necessary to examine the contents of the communication.
Article 16.12. Public Participation
1. In the conduct of its activities, including meetings, the Labor Committee established in Article 16.13.4, may provide the means for the receipt and consideration of the views of representatives of its labor and management organizations, as well as persons with a legitimate interest in matters related to this Chapter.
2. For the purposes of paragraph 1, each Party shall establish or maintain, and consult with, a national labor, advisory or consultative body, or similar mechanism for members of its public, including representatives of its labor and business organizations, to provide views on matters relating to this Chapter.
Article 16.13. Institutional Provisions
1. In order to facilitate communication between the Parties for the purposes of this Chapter, each Party shall designate a contact point which, in the case of Chile, shall be within its Ministry of Labour and Social Security and/or the Undersecretariat for International Economic Relations of the Ministry of Foreign Affairs or its legal successors and which, in the case of Ecuador, shall be within the Ministry of Labour or within the Vice-Ministry of Foreign Trade of the Ministry of Production, Foreign Trade, Investment and Fisheries or its legal successors, within six (6) months following the date of entry into force of this Agreement. Each Party shall notify the other Party of the designation of the contact point and, as soon as possible, of any change thereof.
2. The Parties may exchange information by any means of communication, including the Internet and videoconferencing.
3. The points of contact shall:
(a) facilitate frequent communication and coordination between the Parties;
(b) attend the Labor Committee established in paragraph 4;
(c) report to the Commission on the implementation of this Chapter, if necessary;
(d) act as a channel of communication with the public in their respective territories, and
(e) work together, including with other appropriate agencies of their governments, to develop and implement cooperative activities.
4. The Parties establish the Labor Committee (hereinafter referred to as the "Committee"), which may meet to discuss matters of mutual interest, including potential areas of cooperation, review the implementation of this Chapter, and to address any issues that may arise between them. The Committee shall be composed of high-level government representatives, or their designees, responsible for labor and trade issues and, depending on the subject matter, may include representatives of other relevant public entities.
5. The Committee shall meet:
(a) in regular sessions at least every two (2) years, and
(b) at extraordinary sessions at the request of either Party.
Ordinary sessions shall be chaired alternately by each Party and extraordinary sessions by the Party that requested it. Sessions may be held in person or by virtual means if the Parties so agree.
6. The Committee may hold public meetings to report on relevant matters.
7. All decisions and recommendations of the Committee shall be made by mutual consent.
8. The functions of the Committee shall be
(a) monitor the implementation of this Chapter and make recommendations on its future development and, to this end, within three (3) years after the date of entry into force of this Agreement, the Committee shall review its operation and effectiveness in the light of experience gained;
(b) direct the work and activities established by the same;
(c) establish priorities for cooperative actions and adopt the mutual work plan on cooperation;
(d) approve for publication, under such terms and conditions as it may determine, reports and studies prepared by independent experts or working groups;
(e) facilitate consultations through the exchange of information;
(f) address questions arising between the Parties concerning the interpretation or application of this Chapter, and
(g) promote the collection and publication of comparable information on the application of laws, labour standards and labour market indicators.
9. The Committee may consider any other matter within the scope of this Chapter and take such other action in the exercise of its functions as the Parties may agree.
Article 16.14. Labor Consultations
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter, and shall make every effort through dialogue, consultation, exchange of information and, as appropriate, cooperation, to address any matter that may affect the operation of this Chapter.
2. A Party may request labor consultations with the other Party, at the level of their respective contact points, with respect to any matter arising under this Chapter by delivering a written request to the other Party's contact point. The consulting Party shall include information that is specific and sufficient to enable the consulted Party to respond, including identification of the matter at issue and an indication of the legal basis for the request under the provisions of this Chapter.
3. The requested Party, through its point of contact, shall acknowledge receipt of the request, in writing, no later than seven (7) days after the date of its receipt.
4. Unless the Parties agree otherwise, they shall enter into consultations, through their contact points, within ninety (90) days of the date of receipt of the request referred to in paragraph 2.
5. The Parties, through their contact points, shall make every effort to reach a mutually satisfactory resolution of the matter, which may include appropriate cooperative activities. The Parties, jointly, may seek advice or assistance from any person or body they deem appropriate for the purpose of considering the matter.
6. If the Parties, through their contact points, are able to resolve the matter, they shall document the outcome, including, if appropriate, the specific steps and timelines agreed. The Parties, through their contact points, shall prepare a consensus report summarizing the outcome of the consultations held and make it publicly available, unless they agree otherwise.
Article 16.15. Consultations In the Framework of the Works Council
1. If the Parties are unable to resolve the matter through point-of-contact consultations within ninety (90) days of the expiration of the time period set out in Article 16.14.4, either Party may request in writing that the Committee meet to consider the matter, including in its request a record of the point-of-contact discussions and the information exchanged.
2. The Committee shall meet no later than sixty (60) days from the date of receipt of the request, unless the Parties agree otherwise, and shall seek to resolve the matter, including, if appropriate, through consultation with independent experts mutually agreed by the Parties.
3. Consultations under this Article shall be confidential and shall take place in the capital of the consulted Party, unless the Parties agree otherwise.
4. If the Committee succeeds in resolving the matter, it shall document the outcome including, if appropriate, the specific steps and timelines agreed. The Committee shall prepare a consensus report summarizing the outcome of the consultations held and make it publicly available, unless the Parties agree otherwise.
Article 16.16. Ministerial Consultations
If the Committee fails to resolve the matter within ninety (90) days from the date of the meeting referred to in Article 16.15.2, the Parties may refer the matter to the relevant Ministers, who shall seek to resolve the matter.
Article 16.17. Termination of Consultations
The Parties shall agree on a report reflecting the outcome of consultations held pursuant to Articles 16.14, 16.15 and 16.16, and undertake to implement within a reasonable time the conclusions and recommendations thereof.
Article 16.18. Non-Application of Dispute Resolution
No Party may have recourse to the dispute settlement mechanism provided for in Chapter 22 (Dispute Settlement) with respect to any matter arising under this Chapter. However, the Parties may at any time have recourse to procedures such as good offices, conciliation, and mediation, as set out in Article 22.5 (Alternative Dispute Resolution).
Chapter 17. TRADE AND THE ENVIRONMENT
Article 17.1. Definitions
For purposes of this Chapter:
environmental law means a law or regulation of a Party, or provisions thereof, the primary purpose of which is the protection of the environment, or the prevention of a danger to human life or health, through:
(a) the prevention, reduction or control of a leak, discharge or emission of environmental contaminants;
(b) the control of environmentally hazardous or toxic chemicals, substances, materials or wastes, and the dissemination of information relating thereto, or
(c) the protection or conservation of wild flora and fauna, including endangered species, their habitat, and natural areas under special protection (1) (2)
but does not include a law or regulation, or provisions thereof, directly related to worker safety and health, or a law or regulation, or provisions thereof, the primary purpose of which is the management of natural resources for subsistence or aboriginal (3) harvesting purposes, and
law or regulation means:
(a) in the case of Chile, a law of the National Congress or decree of the President of the Republic, enacted as indicated by the Political Constitution of the Republic of Chile, and
(b) in the case of Ecuador, a law passed by the National Assembly or an Executive Decree of the President of the Republic, enacted in accordance with the Constitution of the Republic of Ecuador.
Article 17.2. Context and Objectives
1. The objectives of this Chapter are to promote mutually supportive trade and environmental policies; to promote high levels of environmental protection and effective enforcement of environmental laws; and to build the capacity of the Parties to address trade-related environmental issues, including through cooperation.
2. Taking into account their respective national priorities and circumstances, the Parties recognize that enhanced cooperation to protect and conserve the environment and sustainably manage their natural resources brings benefits that can contribute to sustainable development, strengthen their environmental governance and complement the objectives of this Agreement.
3. The Parties further recognize that it is inappropriate to apply their environmental measures in a manner that constitutes a disguised restriction on trade or investment between the Parties.
Article 17.3. General Commitments
1. The Parties recognize the sovereign right of each Party to establish its own levels of domestic environmental protection and its own environmental priorities, and to establish, adopt, or modify its environmental laws and policies accordingly.
2. Each Party shall endeavour to ensure that its environmental laws and policies provide for and encourage high levels of environmental protection and continue to improve their respective levels of environmental protection.
3. No Party shall fail to effectively enforce its environmental laws through a sustained or recurring course of action or inaction in a manner affecting trade or investment between the Parties after the date of entry into force of this Agreement.
4. Each Party retains the right to exercise reasonable discretion in implementing and making good faith decisions on the allocation of resources for the enforcement of environmental laws, regulations and policies, provided that the exercise of that discretion and those decisions are not inconsistent with its obligations in this Chapter.
5. The Parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection afforded by their environmental laws. Accordingly, no Party shall waive, derogate from, or offer to waive or derogate from its environmental laws, in a manner that weakens or reduces the protection afforded in those laws, in order to encourage trade or investment between the Parties.
6. The Parties shall ensure that their environmental laws and policies shall not be established or applied for protectionist trade purposes.
7. The Parties shall seek to cooperate on matters of mutual interest in the WTO Committee on Trade and Environment.
8. Nothing in this Chapter shall be construed to empower the authorities of a Party to conduct environmental enforcement activities in the territory of the other Party.
Article 17.4. Multilateral Environmental Agreements
1. The Parties recognize that multilateral environmental agreements play an important role, at the global, regional and national levels, in protecting the environment, and that their respective implementation is critical to achieving the environmental objectives of these agreements, as well as to achieving sustainable development. Accordingly, each Party affirms its commitment to implement the multilateral environmental agreements to which it is a party.
2. The Parties emphasize the need to foster mutual supportiveness between trade and environmental laws and policies, through dialogue between the Parties on trade and environment issues of mutual interest, particularly with respect to the negotiation and implementation of relevant multilateral environmental and trade agreements.
Article 17.5. Procedural Matters
1. Each Party shall promote public awareness of environmental laws and policies, including enforcement and compliance procedures, by ensuring that relevant information is publicly available.
2. Each Party shall ensure that an interested person residing or established in its territory may request that the Party's competent authorities investigate alleged violations of its environmental laws, and that the competent authorities give due consideration to such requests, in accordance with the Party's legal system.
3. Each Party shall ensure that judicial or administrative proceedings for the enforcement of its environmental laws are available under its legal system, and that such proceedings are fair, equitable, transparent and comply with due process. Any hearings in such proceedings shall be open to the public, except where the administration of justice requires otherwise in accordance with its legal system.
4. Each Party shall ensure that persons with a recognized interest in a particular matter under its legal system have appropriate access to the procedures referred to in paragraph 3.
5. Each Party shall have appropriate sanctions and remedies for violations of its environmental laws. Such sanctions or remedies may include the right to take action directly against the violator to seek damages or injunctive relief.
6. Each Party shall take into consideration the relevant factors in establishing the sanctions or remedies referred to in paragraph 5, which shall be proportionate to the type of violation committed.
Article 17.6. Public Communications
1. Each Party shall facilitate the receipt and consideration of written submissions from persons of that Party regarding the implementation of this Chapter. Each Party shall respond to such written submissions in a timely manner and in accordance with its domestic procedures, and shall make the submission and the results of its consideration available to the other Party.
2. Each Party shall make publicly available, in an accessible manner, its procedures for the receipt and consideration of written submissions, including the contact point that will receive such submissions. The Parties may decide on the most appropriate means to meet this objective. These procedures may provide that, to be eligible for consideration, the communication shall:
(a) be in writing in one of the official languages of the Party receiving the communication;
(b) clearly identify the person submitting the communication;
(c) provide sufficient information to permit review of the communication, including any documentary evidence on which the communication may be based;
(d) explain how, and to what extent, the issue raised affects trade or investment between the Parties, and
(e) indicate whether the matter has been communicated in writing to the competent authorities of the Party, and the response, if any, issued by the authority.
3. If a communication raises issues that are already the subject of judicial or administrative proceedings of the Party at the time of its receipt, the response of the Party concerned shall be limited to providing information identifying the pending case and its status.
4. A Party may request from the applicant that submitted the communication such additional information as may be necessary to examine the contents of the communication.
Article 17.7. Public Participation
1. Each Party shall seek to address requests for information regarding the implementation of this Chapter.
2. Each Party shall make its best efforts to respond favourably to requests for information made by persons or organisations in its territory in relation to the implementation of this Chapter.
3. Each Party shall make use of existing consultative mechanisms on environmental matters or establish new mechanisms, such as national advisory committees or a similar mechanism, to seek views on matters related to the implementation of this Chapter.
Article 17.8. Responsible Business Conduct
1. Each Party shall encourage enterprises operating within its territory or jurisdiction to voluntarily adopt, in their internal policies, practices and standards of responsible business conduct that contribute to achieving sustainable development in its environmental dimension, consistent with internationally recognized guidelines and principles that have been endorsed or are supported by that Party.
2. To this end, the Parties agree to exchange views and may consider bilateral cooperation in the various areas of responsible business conduct.
Article 17.9. Voluntary Mechanisms to Improve Environmental Performance
1. The Parties recognize that flexible and voluntary mechanisms, e.g., voluntary audits and reporting, market-based incentives, voluntary exchange of information and expertise, among others, can contribute to achieving and maintaining high levels of environmental protection and complement domestic regulatory measures. The Parties also recognize that such mechanisms should be designed in a manner that maximizes environmental benefits and avoids creating unnecessary barriers to trade.
2. Therefore, in accordance with its laws, regulations or policies and to the extent it considers appropriate, each Party shall encourage the use of flexible and voluntary mechanisms to protect natural resources and the environment in its territory.
3. In addition, if private sector entities or non-governmental organizations develop voluntary mechanisms for the promotion of products based on the environmental qualities, each Party should encourage such entities and organizations to develop voluntary mechanisms that, inter alia:
(a) are truthful, not misleading and take into account scientific and technical information;
(b) if applicable and available, are based on relevant international standards, guidelines or recommendations, and best practices;
(c) promote competition and innovation, and
(d) do not treat a product less favourably on the basis of its origin.
Article 17.10. Trade and Biodiversity
1. The Parties recognize the importance of the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of benefits arising from the utilization of genetic resources, in accordance with their respective legal systems or domestic policies, and the key role of biological diversity in achieving sustainable development.
2. Each Party shall promote and encourage the conservation and sustainable use of biological diversity, as well as the fair and equitable sharing of benefits arising from the utilization of genetic resources, in accordance with its respective domestic laws or policies.
3. The Parties recognize the importance of respecting, preserving and maintaining the knowledge, innovations and practices of indigenous and local communities embodying traditional lifestyles that contribute to the conservation and sustainable use of biological diversity.
4. The Parties recognize the importance of facilitating access to genetic resources within their respective jurisdictions, in accordance with their international obligations. Each Party further recognizes that it may require, through domestic measures, prior informed consent for access to genetic resources in accordance with its respective domestic laws or policies and, where such access is granted, require the establishment of mutually agreed terms, including with respect to the sharing of benefits arising from the utilization of such genetic resources.
5. Pursuant to Article 17.18, the Parties shall cooperate to address matters of mutual interest. Cooperation may include, but is not limited to, the exchange of information and experiences in areas related to: