(d) transparency and public participation in environmental matters; and
(e) cooperation between the Parties to advance environmental issues of common interest.
Article 18.3. Relationship between this Agreement and the Agreement on Environmental Cooperation
1. The Parties recognize the importance of balancing trade obligationswith environmental obligations, and affirm that the Agreement on Environmental Cooperation complements this Agreement and that the 2 are mutually supportive.
2. The Commission may consider reports and recommendations from the Committee on the Environment established under the Agreement on EnvironmentalCooperation, in respect of an issue related to trade and the environment.
Chapter Nineteen. LABOUR
Article 19.1. Affirmations
The Parties affirm their respect for their Constitutions and their rights to establish their own level of domestic labour protection under their respectivedomestic law, consistent with their obligations as members of the International Labour Organization (ILO) and their commitments to the ILO Declaration on Fundamental Principles and Rights at Work (1998).
Article 19.2. Objectives
The Parties wish to build on their respective international commitments, strengthen their cooperation on labour and, in particular, they wish to:
(a) improve working conditions and living standards in each Party’s territory;
(b) promote their commitment to internationally recognized labour principles and rights;
(c) promote compliance with and effective enforcement by each Party of its domestic labour law;
(d) promote social dialogue on labour matters among workers, employers, their organizations, and governments;
(e) pursue cooperative labour-related activities for the Parties’ mutual benefit;
(f) strengthen the capacity of the ministries responsible for labour affairs, and the capacity of other institutions responsible for administering and enforcing domestic labour law in their respective territories; and
(g) foster a full and open exchange of information between those ministries and institutions in regard to domestic labour law and its application in each Party’s territory.
Article 19.3. Obligations
In order to further the foregoing objectives, the Parties’ mutual obligations are set out in the Agreement on Labour Cooperation between Canada and the Republic of Honduras (the "Agreement on Labour Cooperation") that addresses, among other things:
(a) general obligations concerning internationally recognized labour principles and rights to be embodied in each Party’s domestic labour law;
(b) a commitment not to derogate from domestic labour law in order to encourage trade or investment;
(c) effective enforcement of domestic labour laws through appropriate government action, private rights of action, procedural guarantees, public information and awareness;
(d) institutional mechanisms to oversee the implementation of the Agreement on Labour Cooperation,such as a Ministerial Council and National Points of Contact, to receive and review public communications on specific labour law matters and to enable cooperative activities to further the objectives of the Agreement on Labour Cooperation;
(e) general and ministerial consultations regarding the implementation of the Agreement on Labour Cooperation and its obligations; and
(f) independent review panels to hold hearings and make determinations regarding alleged non-compliance with the terms of the Agreement on Labour Cooperation and, if requested by a Party, monetary assessments.
Article 19.4. Cooperative Activities
The Parties recognize that labour cooperation plays an important role in advancing the level of compliance with labour principles and rights and that the Agreement on Labour Cooperation provides for the development of a plan of action for cooperative labour activities to promote the objectives of the Agreement on Labour Cooperation. An indicative list of areas of possible cooperation between the Parties is set out in the Agreement on Labour Cooperation.
Chapter Twenty. TRANSPARENCY
Section A. Publication, Notification and Administration of Domestic Law
Article 20.1. Definitions
For the purposes of this Section:
administrative ruling of general application means an administrative ruling or interpretation that applies to persons and fact situations that fall within the general scope of that ruling or interpretation and that establishes a norm of conduct, but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good, or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Article 20.2. Contact Points
Each Party shall designate, within 60 days of the entry into force of this Agreement, a contact point to facilitate communications between the Parties on a matter covered by this Agreement. At the request of the other Party, the contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication between the Parties.
Article 20.3. Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application respecting a matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and the other Party a reasonable opportunity to comment on these proposed measures.
Article 20.4. Notification and Provision of Information
1. To the extent possible, each Party shall notify the other Party of any actual or proposed measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect the other Party's interests under this Agreement.
2. At the request of the other Party, a Party shall promptly provide information and respond to questions pertaining to an actual or proposed measure, even if the other Party was previously notified of that measure.
3. Any notification or information provided under this Article is without prejudice as to whether the measure is consistent with this Agreement.
Article 20.5. Administrative Proceedings
In order to administer measures of general application affecting matters covered by this Agreement in a consistent, impartial, and reasonable manner, each Party shall ensure that in its administrative proceedings applying measures referred to in Article 20.3 to particular persons, goods, or services of the other Party in specific cases:
(a) whenever possible, a person of the other Party who is directly affected by a proceeding is given reasonable notice, in accordance with domestic procedures, when it is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of the issues;
(b) a person referred to in subparagraph (a) is afforded a reasonable opportunity to present facts and arguments in support of its position prior to any final administrative action, when permitted by time, the nature of the proceeding, and the public interest; and
(c) apply procedures consistent with domestic law.
Article 20.6. Review and Appeal
1. Each Party shall, regarding matters covered by this Agreement, establish or maintain procedures or judicial, quasi-judicial, or administrative tribunals for:
(a) the purpose of the prompt review; and
(b) when warranted, correction of final administrative actions.
2. Each Party shall ensure that the tribunals or those that administer the procedures referred to in paragraph 1 are impartial and independent of the office or authority entrusted with administrative enforcement and do not have a substantial interest in the outcome of the matter.
3. Each Party shall ensure thatthe parties to the proceeding have the following rights in regard to the tribunals or procedures referred to in paragraph 1:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on:
(i) the evidence and submissions of record, or
(ii) where if required by domestic law, the record compiled by the administrative authority.
4. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that the decision referred to in paragraph 3(b) is implemented by, and governs the practice of the competent office or authority.
Section B. Anti-Corruption
Article 20.7. Definitions
For the purposes of this Section:
act or refrain from acting in relation to the performance of official duties includes use of the official’s position within the official’s authorized competence;
foreign public official means:
(a) a person holding a legislative, executive, administrative, or judicial office of a foreign country, at any level of government, whether that person is appointed or elected; and
(b) a person exercising a public function for a foreign country at any level of government, including a public function in a public agency or public enterprise;
official of a public international organization means an international civil servant or a person who is authorized by a public international organization to act on its behalf;
public function means a temporary or permanent, paid or honorary activity, performed by a natural person in the name of a Party or in the service of a Party, such as procurement, at the central level of government; and
public official means an official or employee of a Party at the central level of government, whether appointed or elected
Article 20.8. Statement of Principles
The Parties affirm their resolve to prevent and combat bribery and corruption in international trade and investment.
Article 20.9. Anti-Corruption Measures
1. Each Party shall adopt or maintain the necessary legislative or other measures to establish, in matters affecting international trade or investment, as criminal offences under its law when committed intentionally:
(a) a public official of that Party or a person who performs public functions for that Party soliciting or accepting, directly or indirectly, an article of monetary value or other benefit, such as a favour, promise, or advantage, for himself or herself or for another person, in order that the official act or refrain from acting in the exercise of his or her public functions;
(b) offering, promising, or giving, directly or indirectly, to a public official of that Party or a person who performs public functions for that Party an article of monetary value or other benefit, such as a favour, or advantage, for himself or herself or for another person, in order that the official act or refrain from acting in the exercise of his or her public functions;
(c) offering, promising, or giving an undue pecuniary or other advantage, directly or indirectly, to a foreign public official or an official of a public international organization, for that official himself or herself or for another person, in order that the official act or refrain from acting in relation to the performance of his or her official duties, in order to obtain or retain business or other improper advantage in the conduct of international business; and
(d) aiding, abetting, or conspiringto commitan offensedescribed in subparagraphs (a) through (c).
2. Each Party shall take any measures necessary to establish its jurisdiction over the offences referred to in paragraph 1 that are committed in its territory.
3. Each Party shall adopt or maintain penalties and procedures to enforce the criminal measures that it adopts or maintains in conformity with paragraph 1. 4. If, under the legal system of a Party, enterprises cannot be held criminally liable, the Party shall ensure that enterprises are subject to effective, proportionate, and dissuasive non-criminal sanctions for the offenses described in paragraph 1.
5. Each Party shall endeavour to adopt or maintain measures to protect a person who, in good faith, reportsan act described in paragraph 1.
Article 20.10. Cooperation In International Fora
The Parties recognize the importance of regional and multilateral initiatives to prevent and combat bribery and corruption in international trade and investment. The Parties agree to work together to advance efforts in regional and multilateral fora to prevent and combat bribery and corruption in international trade and investment, and to encourage and support appropriate initiatives.
Chapter Twenty-One. INSTITUTIONAL ARRANGEMENTS AND DISPUTE SETTLEMENT PROCEDURES
Section A. Institutions
Article 21.1. Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, composed of cabinet-level representatives of the Parties, or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement; and
(c) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) adopt interpretive decisions concerning this Agreement, which shall be binding on the dispute settlement panels established under Article 21.10 and on Tribunals established under Section C of Chapter Ten (Investment – Settlement of Disputes between a Party and an Investor of the Other Party);
(b) request the advice of non-governmental persons or groups;
(c) take any other action in the exercise of its functions as the Parties may decide; and
(d) advance the objectives of the Agreement by approving the following:
(i) a revision of the schedule of a Party contained in Annex 3.4.1 (National Treatment and Market Access for Goods – Tariff Elimination), with the purpose of adding one or more goods excluded in the Tariff Elimination Schedule,
(ii) a revision of a phase-out period established in Annex 3.4.1 (National Treatment and Market Access for Goods – Tariff Elimination), with the purpose of accelerating a tariff reduction,
(iii) a revision of the rules of origin established in Annex 3.1 (National Treatment and Market Access for Goods – Textile and Apparel Goods) and Annex 4.1 (Rules of Origin – Specific Rules of Origin),
(iv) a revision of the Uniform Regulations on Customs Procedures, and
(v) a revision of Annex 17 (Government Procurement).
4. At the request of the Committee on the Environment established under the Agreement on Environmental Cooperation between Canada and the Republic of Honduras, the Commission may consider modifying Article 1.4 (Objectives and Initial Provisions – Relation to Multilateral Environmental Agreements) to include another multilateral environmental agreement (MEA) or to include an amendment to an MEA or to remove an MEA listed in that Article.
5. Annex 21.1 applies to a revision or a modification approved by the Commission under paragraphs 3(d) or 4.
6. The acceptance by a Party of a revision or a modification referred to in paragraphs 3(d) or 4 is subject to the completion of any necessary internal procedures of that Party.
7. The Commission may establish committees, subcommittees, or working groups taking into consideration any recommendation of the Coordinators. Unless otherwise specified in this Agreement, the committees, subcommittees and working groups shall work under a mandate which is recommended by the Coordinators and approved by the Commission.
8. The Commission shall establish its own rules and procedures. All decisions of the Commission shall be taken by consensus, unless the Commission decides otherwise.
9. The Commission shall normally convene once a year, or at the request, in writing, of either Party. Unless otherwise decided by the Parties, sessions of the Commission shall be held alternately in the territory of each Party, or by any technological means available.
Article 21.2. Free Trade Coordinators
1. Each Party shall appoint a Free Trade Coordinator. The Coordinators are as follows:
(a) for Canada, whoever Canada designates as a Coordinator by notice in writing to Honduras; and
(b) for Honduras, the Director General of Economic Integration and Trade Policy in the Secretariat of State of Industry and Trade (Director General de Integracion Econdémica y Politica Comercial de la Secretaria de Estado en los Despachos de Industria y Comercio) or any successor in function.
2. The Coordinators shall:
(a) supervise the work of all committees, subcommittees, and working groups, established under this Agreement;
(b) recommend to the Commission the establishment of committees, subcommittees and working groups that they consider necessary to assist the Commission;
(c) follow up on any decisions taken by the Commission, as appropriate;
(d) receive notifications provided pursuant to this Agreement; and
(e) consider any other matter that may affect the operation of this Agreement, as mandated by the Commission.
3. The Coordinators shall meet as often as required.
4. Either Party may at any time request the other Party in writing that the Coordinators hold a special meeting. The meeting shall take place within 30 days of receipt of the request.
Article 21.3. Secretariat
1. The Commission shall establish and oversee a Secretariat composed of national sections.
2. Each Party shall:
(a) establish a permanent office for its Section;
(b) be responsible for:
(i) the operation of its Section and the related costs, and
(ii) the remuneration and payment of expenses of members of panels, committees, subcommittees and working groups established under this Agreement, as set out in Annex 21.3;
(c) designate an individual to serve as Secretary for its Section, who shall be responsible for its administration and management; and
(d) notify the Commission of the location of its Section's office.
3. The Secretariat shall:
(a) provide administrative assistance to a dispute settlement panel established under this Chapter, in accordance with the procedures established pursuant to Article 21.13; and
(b) as the Commission may direct:
(i) support the work of other committees, subcommittees and working groups established under this Agreement, and
(ii) facilitate the operation of this Agreement.
Section B. Dispute Settlement
Article 21.4. Definitions
For the purposes of this Section:
chair candidates means all of the candidates for chair proposed by each Party under Article 21.11(3), as modified by paragraph 21.11(4) if applicable;
Code of Conduct means the Code of Conduct that the Commission shall establish under Article 21.12(1)(d);
complaining Party means the Party that initiates a dispute settlement procedure under this Section; and
Party complained against means the Party against which a dispute settlement procedure is initiated.
Article 21.5. Cooperation
The Parties shall endeavour to come to an understanding on the interpretation and application of this Agreement and, make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of a matter that may affect its operation.
Article 21.6. Sphere of Application
1. Except as provided in paragraph 2, the dispute settlement provisions of this Chapter apply with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement or wherever a Party considers that:
(a) an actual or proposed measure of the other Party is or would be inconsistent with one of its obligations under this Agreement;
(b) the other Party otherwise fails to carry out one of its obligation under this Agreement; or
(c) there is nullification or impairment in the sense of Annex 21.6.
2. This Section does not apply to disputes regarding the provisions of Chapters Seven (Sanitary and Phytosanitary Measures), Eight (Technical Barriers to Trade), Eighteen (Environment), Nineteen (Labour), Section B of Chapter Twenty (Transparency – Anti-Corruption) and Articles 15.2 (Competition Policy, Monopolies, and State Enterprises – Competition Policy) and 11.8(2) (Cross-Border Trade in Services – Domestic Regulation).