1. The Parties shall:
(a) facilitate the provision of technical assistance, on mutually agreed terms and conditions, to strengthen their sanitary and phytosanitary measures and related activities, including research, process technology, and infrastructure, among others; and
(b) provide information on their technical assistance programs related to sanitary or phytosanitary measures in areas of particular interest.
2. Expenditures derived from technical assistance activities shall be subject to the availability of economic resources and priorities in this area for each Party.
Article 8.14. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish the Committee on Sanitary and Phytosanitary Measures. The Committee shall be composed of representatives of each of the Parties, with responsibilities in sanitary, phytosanitary and food safety matters, and shall assist the Administrative Commission in the performance of its functions.
2. The Committee shall be formed by means of an exchange of communications in which its representatives shall be designated. The deadline for its installation shall be within 90 days from the entry into force of this Agreement.
3. The Committee shall establish, if it deems it appropriate, its rules of procedure. 4. The meetings of the Committee shall be held at the request of the Administrative Commission, the Free Trade Agreement Coordinators or at the request of any of the Parties, to deal with matters of interest to them.
5. The Committee's resolutions shall be adopted by consensus and reported to the appropriate bodies.
6. The Committee shall meet in ordinary session at least once a year, unless otherwise agreed by the Parties, and in extraordinary session as often as necessary, within 30 days from the date of the request made in accordance with paragraph 4. The meetings of the Committee may be held in person or through any technological means. When the meetings are held in person, they shall be held alternately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting.
7. Notwithstanding the provisions of paragraph 1, the Committee may meet to discuss bilateral matters of interest to Mexico and one or more Central American Parties, provided that the other Parties are notified sufficiently in advance so that, if appropriate, they may participate in the meeting. Agreements arising from the meeting shall be adopted by consensus among the Parties involved in the bilateral matter and shall have effect only with respect to them.
8. The functions of the Committee shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) to make appropriate recommendations to the Administrative Commission on matters within its competence;
(c) facilitate technical consultations and issue expeditious recommendations on specific sanitary, phytosanitary and food safety matters, as well as serve as a forum for the discussion of problems arising from the application of specific sanitary or phytosanitary measures, with a view to reaching mutually acceptable alternatives;
(d) establish ad hoc technical working groups in the areas of animal health, plant health or food safety, and indicate their mandate and terms of reference, with the objective of addressing a matter mandated by the Committee;
(e) agree on actions, procedures and deadlines for the recognition of equivalencies; the streamlining of the risk assessment process; the recognition of pest- or disease-free areas or Zones and areas or zones of low pest or disease prevalence and control, inspection and approval procedures, recommending the adoption of these to the Administrative Commission;
(f) consult on issues, positions and agendas for meetings of the WTO Committee on Sanitary and Phytosanitary Measures, the various Codex Alimentarius Committees (including meetings of the Codex Alimentarius Commission); the IPPC; the OIE and other international and regional fora on food safety, human and animal health and plant health;
(g) create work programs on regulatory cooperation, taking into consideration the activities established in Article 8.12, for the facilitation of trade between the Parties;
(h) coordinate the exchange of information on sanitary and phytosanitary measures between the Parties;
(i) carry out the necessary actions for the training and specialization of technical personnel by promoting the exchange of technical experts, including cooperation in the development, application and enforcement of sanitary and phytosanitary measures;
(j) report annually to the Administrative Commission on the application of this Chapter; and
(k) any other matter in connection with this Chapter instructed by the Administrative Commission.
Article 8.15. Technical Consultations
1. The Parties may hold technical consultations on specific trade concerns involving Mexico and one or more Central American Parties. In this case, Mexico and the Party or Parties involved shall meet in the modality they agree upon (such as face-to-face meetings, videoconferences or others), in order to seek a solution.
2. The Party or Parties requested to hold technical consultations shall meet with the requesting Party or Parties (in the agreed modality) within 15 days of the request and, if necessary, may request additional time.
Chapter IX. Technical Barriers to Trade
Article 9.1. Definitions
For the purposes of this Chapter, the terms and definitions included in Annex 1 of the TBT Agreement, ISO/IEC Guide 2 "General Terms and their Definitions in Relation to Standardization and Related Activities", and ISO/IEC Standard 17000 "Vocabulary and General Principles - Conformity Assessment", in force, shall apply.
Article 9.2. Objective
The objective of this Chapter is to facilitate and increase trade in goods by identifying, preventing and eliminating unnecessary obstacles to trade between the Parties that may arise as a result of the preparation, adoption and application of standards, technical regulations and conformity assessment procedures.
Article 9.3. Incorporation of Rights and Obligations
The rights and obligations established in the TBT Agreement are incorporated into and form part of this Agreement, without prejudice to the provisions of this Chapter.
Article 9.4. Rights and Obligations
1. Each Party may set the level of protection it considers appropriate to achieve its legitimate objectives. Likewise, it may develop, adopt or maintain the necessary measures to ensure compliance with its standards, technical regulations and conformity assessment procedures, in accordance with the provisions of the TBT Agreement.
2. The Parties shall use as a basis for the elaboration, adoption and application of their standards, technical regulations and conformity assessment procedures, international standards, guidelines and recommendations or those of imminent formulation, except when these do not constitute an effective or adequate means to achieve their legitimate objectives, in accordance with the provisions of the TBT Agreement.
3. Standards, technical regulations and conformity assessment procedures shall be prepared, adopted and applied so as to accord to products imported from the other Party treatment no less favorable than that accorded to like products of national origin and to like products imported from another Party or non-Party.
4. To the extent possible, the Parties shall comply with the present and future recommendations issued by the WTO Committee on Technical Barriers to Trade, derived from the triennial reviews conducted within the Committee.
Article 9.5. Scope of Application
1. This Chapter applies to standards, technical regulations and conformity assessment procedures (1) developed, adopted and applied by the Parties, as defined in the TBT Agreement, that may directly or indirectly affect trade in goods between the Parties.
2. This Chapter does not apply to sanitary and phytosanitary measures, nor to purchase specifications established by governmental institutions for their production or consumption needs.
Article 9.6. Standards
1. The Parties reiterate their obligation under Article 4.1 of the TBT Agreement to ensure that their standardizing bodies accept and comply with the Code of Good Practice for the Preparation, Adoption and Application of Standards set out in Annex 3 of the TBT Agreement.
2. To the extent possible, the Parties shall comply with the application of the principles set forth in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since January 1, 1995 (Document G/TBT/1/Rev.9, published by the WTO on September 8, 2008).
3. The Parties shall promote the application of ISO/IEC Guides 21-1:2005, 21- 2:2005, or those that replace them, in the adoption of international standards.
Article 9.7. Technical Regulations
1. As regards technical regulations, the provisions of Article 2.7 of the TBT Agreement shall apply.
2. When a Party does not consider a technical regulation under the terms of Article 2.7 of the TBT Agreement, it shall provide reasons for its decision.
Article 9.8. Conformity Assessment
1. To the extent possible, a Party shall accept the results of conformity assessment procedures with respect to standards and technical regulations of the other Party, even if those procedures differ from its own, provided that it is satisfied that they provide a degree of conformity with the relevant technical regulations or standards equivalent to that provided by the procedures that the accepting Party carries out or the result of which it accepts.
2. If a Party does not accept the results of a conformity assessment procedure carried out in the territory of the other Party, it shall give reasons for its decision.
3. Without prejudice to the provisions of paragraphs 1 and 2, the Parties may enter into negotiations for the conclusion of mutual recognition agreements between competent bodies in areas of conformity assessment, following the principles of the TBT Agreement and the recommendations issued by its Committee.
4. If a Party rejects a request by the other Party to enter into or conclude negotiations to reach a mutual recognition agreement to facilitate the acceptance in its territory of the results of conformity assessment procedures carried out by bodies in the territory of the other Party, it shall give reasons for its decision.
5. The Parties shall encourage that the activities developed within the framework of technical cooperation and assistance serve as a reference in a process of recognition of conformity assessment.
6. Each Party shall accredit, approve or, in accordance with its national legislation, recognize conformity assessment bodies in the territory of the other Party, under terms no less favorable than those granted to conformity assessment bodies in its territory.
7. If a Party refuses to accredit, approve or, in accordance with its national legislation, recognize a conformity assessment body in the territory of the other Party, it shall give reasons for its decision.
Article 9.9. Transparency
1. The Parties shall transmit to each other, preferably electronically, through the contact point established by each Party under Article 10 of the TBT Agreement, the notifications of draft technical regulations and conformity assessment procedures referred to in Articles 2.9, 3.2, 5.6 and 7.2 of the TBT Agreement, at the same time that the Party notifies the WTO, under the terms of the TBT Agreement.
2. To the extent possible, the Parties shall communicate those draft technical regulations or conformity assessment procedures that are consistent with the technical content of relevant international standards, guidelines or recommendations.
3. The Parties shall, to the extent possible, publicize their annual or semi-annual work program on standards, technical regulations and conformity assessment procedures at the same time that it is made public to their nationals.
4. Each Party shall provide a period of at least 60 days for interested parties of the other Party to have the opportunity to provide comments and consultations on the notified draft technical regulation or conformity assessment procedure; and to take into consideration such comments and consultations. To the extent possible, a Party shall give favorable consideration to requests to extend the period established for comments.
5. In cases of urgency, when a Party makes a notification of a technical regulation or conformity assessment procedure adopted under Articles 2.10, 3.2, 5.7 and 7.2 of the TBT Agreement, it shall preferably transmit it electronically to the other Party, through the established contact point, at the same time that Party notifies the WTO under the terms of the TBT Agreement. To the extent possible, the Parties shall communicate those technical regulations or conformity assessment procedures that are consistent with the technical content of the relevant international standards, guidelines or recommendations.
6. Each Party shall publish or make available to the public its responses to comments received, if possible, before the date on which the final technical regulation or conformity assessment procedure is published.
7. Each Party shall, upon request of the other Party, provide information on the objective and justification of a technical regulation or conformity assessment procedure that the Party has adopted or proposes to adopt. To the extent possible, each Party shall promote technological mechanisms that favor the exchange of information at stages prior to the publication of draft technical regulations and/or conformity assessment procedures.
8. The Parties shall ensure the transparency of their technical regulations and conformity assessment procedures by publishing the drafts thereof, as well as those adopted, on official, free and publicly accessible websites, to the extent that they exist or are implemented.
9. The authorities of the Parties responsible for the notification referred to in this Article are listed in Annex 9.9.
Article 9.10. Regulatory Cooperation
1. Regulatory cooperation between the Parties has the following objectives, among others:
(a) strengthen mechanisms to increase transparency in the technical regulation, standardization and conformity assessment processes;
(b) simplifying compliance with the requirements established in technical regulations and conformity assessment procedures; and
(c) promote the compatibility and harmonization of technical regulations, standards and conformity assessment procedures.
2. The Parties, through the Committee on Technical Barriers to Trade, shall create work programs on regulatory cooperation at the bilateral or regional level. Such programs shall establish the regulatory authorities involved, the corresponding sectors and work schedules, in order to establish specific actions to facilitate trade between the Parties.
3. Regulatory cooperation activities may include, but are not limited to:
(a) in the field of standardization and technical regulations:
(i) exchange of information in order to learn about the regulatory systems of the Parties;
(ii) harmonization and compatibility of standards and technical regulations, based on international standards, guides and guidelines;
(iii) to the extent possible, bring common positions to international standardization forums, based on mutual interests;
(iv) development of mechanisms for technical assistance and confidence building between the Parties; and
(v) each Party shall allow nationals of the other Party to participate in the development of its standards, technical regulations and conformity assessment procedures;
(b) in the area of conformity assessment:
(i) promote the compatibility and harmonization of conformity assessment procedures;
(ii) encourage the conclusion of mutual recognition agreements to recognize the conformity assessment results of the other Party and thereby simplify testing, inspection, certification and accreditation procedures, under the principles of mutual and satisfactory benefits; and
(iii) to encourage private bodies, which carry out conformity assessment activities in the territories of the Parties, to enter into mutual recognition agreements with each other.
Article 9.11. Technical Cooperation
The Parties agree to provide technical cooperation and assistance to each other, under mutually agreed terms and conditions, for the purpose of, among others:
(a) to promote the application of this Chapter;
(b) to promote the implementation of the TBT Agreement;
(c) strengthen the capacities of their respective standardization, technical regulation, conformity assessment, metrology, and information and notification systems in the area of the TBT Agreement;
(d) collaborate in the formation and training of human resources;
(e) collaborate in the development and implementation of international standards, guidelines or recommendations;
(f) collaborate in the strengthening of good regulatory practices; and
(g) share information of a non-confidential nature that has served as a basis for a Party in the development of a technical regulation.
Article 9.12. Committee on Technical Barriers to Trade
1. The Parties establish the Committee on Technical Barriers to Trade. The Committee shall be composed of representatives of each Party, in accordance with Annex 9.12, and shall assist the Administrative Commission in the performance of its functions.
2. The Committee shall establish, if it deems it appropriate, its rules of procedure.
3. The meetings of the Committee shall be held at the request of the Administrative Commission, the Free Trade Agreement Coordinators or at the request of any of the Parties to deal with matters of interest to them.
4. The Committee's resolutions shall be adopted by consensus and reported to the appropriate bodies.
5. The Committee shall meet in ordinary session at least once a year, unless otherwise agreed by the Parties, and in extraordinary session as often as necessary within 30 days from the date of the request made in accordance with paragraph 3. The meetings of the Committee may be held in person or through any technological means. When the meetings are in person, they shall be held alternately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting.
6. Notwithstanding the provisions of paragraph 1, the Committee may meet to discuss bilateral matters of interest to Mexico and one or more Central American Parties, provided that the other Parties are notified sufficiently in advance so that, if appropriate, they may participate in the meeting. Agreements arising from the meeting shall be adopted by consensus among the Parties involved in the bilateral matter and shall have effect only with respect to them.
7. The functions of the Committee shall include: (a) monitoring the implementation and administration of this Chapter;
(b) to make appropriate recommendations to the Administrative Commission on matters within its competence;
(c) facilitate technical consultations and issue expeditious recommendations on specific issues related to technical barriers to trade, as well as serve as a forum for the discussion of problems arising from the application of specific standards, technical regulations and conformity assessment procedures, with a view to reaching mutually acceptable alternatives;
(d) establish ad hoc technical working groups on technical barriers to trade and indicate their mandate and terms of reference, with the objective of addressing a matter mandated by the Committee;
(e) consult on issues, positions and agendas for meetings of the TBT Agreement Committee, the various international standardization bodies and other international and regional fora on technical barriers to trade;
(f) create work programs on regulatory cooperation, taking into account the activities established in Article 9.10, for the facilitation of trade between the Parties;
(g) carry out the necessary actions for the training and specialization of technical personnel by promoting the exchange of technical experts, including cooperation in the development, implementation and enforcement of technical regulations, standards and conformity assessment procedures;
(h) report annually to the Administrative Commission on the application of this Chapter; and
(i) any other matter instructed by the Administrative Commission.
Article 9.13. Technical Consultation
1. The Parties may hold technical consultations on specific trade concerns involving Mexico and one or more Central American Parties. In this case, Mexico and the Party or Parties involved shall meet in the modality they agree upon (such as face-to-face meetings, videoconferences or others) in order to seek a solution.
2. The Party or Parties requested to hold technical consultations shall meet with the requesting Party or Parties (in the agreed modality) within 15 days of the request and, if necessary, may request additional time.
Article 9.14. Exchange of Information
In accordance with the provisions of this Chapter, any information or explanation requested by a Party shall be provided by the other Party in printed or electronic form within a reasonable period. The Party shall endeavor to respond to each request within 30 days of the submission of such request and, if necessary, may request additional time.
Chapter X. Public Procurement
Article 10.1. Definitions
For the purposes of this Chapter, the following definitions shall apply:
special compensatory conditions: conditions or commitments imposed or considered by a contracting entity to promote local development or improve a Party's balance of payments accounts through local content requirements, licensing for the use of technology, investment, compensatory trade or similar requirements;
procuring entity: an entity listed in Annex 10.2;
written or in writing: any expression in words or numbers that can be read, reproduced and subsequently communicated and includes information transmitted and stored electronically;
technical specification: a specification that establishes the characteristics of the goods to be procured or their related processes and production methods, or the characteristics of services to be procured or their related methods of operation, including applicable administrative provisions and requirements related to evaluation procedures that a procuring entity fixes. A technical specification may also include or refer exclusively to matters relating to terminology, symbols, packaging, or marking or labeling requirements applicable to a good, process, service, or method of production or operation;
conformity assessment procedure: any procedure used, directly or indirectly, to determine that the relevant requirements of technical regulations or standards are fulfilled;
open tendering procedures: any type of procurement method of a Party, except direct procurement methods as set forth in Article 10.13, provided that such methods are consistent with this Chapter;
supplier: a person who has provided, provides or may provide goods or services to a contracting entity;
publish: to disseminate information through an electronic or paper medium that is widely distributed and readily available to the general public; and
services: includes construction services, unless otherwise specified.
Article 10.2. Scope of Application and Coverage
1. This Chapter applies to any measure of a Party relating to covered procurement.
2. For the purposes of this Chapter, covered procurement means a procurement of goods, services, or both:
(a) made through any contractual means, including purchase, rental or lease, with or without an option to buy;
(b) listed and subject to the conditions set forth in Annex 10.2; and
(c) by a procuring entity listed in Annex 10.2.
3. This Chapter does not apply to:
(a) non-contractual arrangements or any form of assistance that a Party or a state enterprise provides, including grants, loans, capital transfers, tax incentives, subsidies, guarantees, cooperative agreements, government provision of goods and services to persons or state, regional or local governments, and purchases for the direct purpose of providing foreign assistance;
(b) acquisitions financed by grants, loans or other forms of international assistance, where the delivery of such aid is subject to conditions incompatible with the provisions of this Chapter;
(c) the contracting of tax agency or depository services, settlement and administration services for regulated financial institutions, and sales and distribution services for public debt;
(d) hiring of public employees and employment-related measures;
(e) purchases made under exceptionally favorable conditions that only occur for a very short period of time, such as extraordinary disposals made by companies that are not normally suppliers or the disposal of assets of companies in liquidation or under judicial administration, provided that this subsection is not used as a means to prevent competition;
(f) the acquisition or lease of land, existing real estate or other real property or rights thereon;
(g) procurement by a procuring entity or state enterprise from another governmental entity or enterprise of that Party; and
(h) financial services.
4. Where a procuring entity awards a procurement contract in a procurement not covered by this Chapter, nothing in this Chapter shall be construed to cover the goods or services that are the subject matter of that procurement contract.
5. No procuring entity may prepare, design, structure or divide a covered procurement for the purpose of evading the obligations of this Chapter.
6. Nothing in this Chapter shall prevent a Party from developing new procurement policies, procedures or contractual modalities, provided that they are not inconsistent with this Chapter.
7. Nothing in this Chapter shall prevent a Party from adopting or maintaining measures:
(a) related to goods or services of disabled persons, minorities, philanthropic institutions or prison labor; or
(b) necessary to protect public morals, public safety or public order, human, animal or plant life or health, including environmental measures and measures relating to the conservation of living or non- living exhaustible natural resources, and intellectual property,
provided that such measures are not applied in a discriminatory manner or constitute a disguised restriction on trade.
Article 10.3. National Treatment
1. With respect to any measure covered by this Chapter, each Party shall accord to goods and services of the other Party, and to suppliers of the other Party of such goods and services, treatment no less favorable than that accorded by that Party, or their respective contracting entities, to their own goods, services and suppliers.