(a) facilitating the exchange of information, expertise, and best practices, including information on management models for museums, cultural centers, libraries, and best practices on heritage conservation;
(b) seeking opportunities to collaborate on cultural events such as festivals, fairs, competitions, workshops, seminars, and training programs;
(c) building capacity on providing opportunities for professional exchanges and training of professionals; and
(d) identifying opportunities for Ecuadorian artists and other cultural professionals and practitioners in the Canadian marketplace.
Section B: Intellectual Property Cooperation and Technical Assistance
1. The Parties recognize the importance of intellectual property rights in promoting innovation, and social, economic, and cultural development, as well as economic competitiveness in a knowledge-based economy.
2. The Parties recognize their mutual interest in developing their understanding of each other’s intellectual property rights system.
3. The Parties shall discuss, through their respective contact points, the development of a work plan of cooperation and technical assistance activities to enhance and strengthen bilateral exchanges and cooperation in the field of intellectual property rights.
4. Any work plan developed under paragraph 3 must be subject to the availability of resources and must include, unless otherwise decided by the Parties, Canada sharing information on its geographical indication and trademarks system with Ecuador taking into account the following principles:
(a) transparency;
(b) capacity building; and
(c) education.
5. The Parties shall discuss, through their respective contact points, any topic of interest related to intellectual property rights.
Section C: Technical assistance on international trade law and dispute settlement
Recognizing Ecuador’s constraints in building its capacity and expertise in international trade law and dispute settlement proceedings, the Parties may undertake technical assistance activities, when feasible and appropriate, including through workshops, seminars, and dialogues on international dispute settlement processes, procedures and best practices.
Chapter 27. DISPUTE SETTLEMENT
Article 27.1: Definitions
For the purposes of this Chapter:
complaining Party means a Party that requests the establishment of a panel under Article 27.7;
designated office means the office that a Party designates under Article 27.19 to provide administrative assistance to a panel established under this Chapter;
expert means a person or body providing information or technical advice to the panel under Article 27.12;
panel means a panel established under Article 27.7;
panellist means a member of a panel established under Article 27.7;
perishable goods means perishable agricultural and fish goods classified in HS Chapters 1 through 24;
responding Party means a Party that has been complained against under Article 27.7; and
responsible office means the designated office of the responding Party.
Article 27.2: Cooperation
The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt, in good faith, through cooperation and discussion to reach a mutually satisfactory resolution to any matter that might affect its operation.
Article 27.3: Scope
Except as otherwise provided in this Agreement, this Chapter applies to the settlement of any 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 an obligation of this Agreement;
(b) the other Party has otherwise failed to carry out an obligation of this Agreement; or
(c) there is nullification or impairment in the sense of Annex 27-A.
Article 27.4: Choice of Forum
1. Subject to paragraphs 2 and 3, if a dispute arises regarding a matter that is covered by this Agreement and the WTO Agreement or any other trade agreement to which the Parties are party, the complaining Party may select the forum in which to settle the dispute.
2. In any dispute referred to in paragraph 1, if the responding Party claims that a matter is subject to Article 1.2.4 (Initial Provisions and General Definitions – Relation to Other Agreements) and requests in writing, no later than 10 days after the request for the establishment of a panel is made, that the matter be considered under this Agreement, the complaining Party, in respect of that matter, may have recourse to dispute settlement procedures only under this Agreement.
3. In any dispute referred to in paragraph 1, if the responding Party claims that the measure at issue is justifiable under paragraphs (b) or (g) of Article XX of the
GATT 1994, or paragraph (c) of Article XIV of the GATS, as incorporated into
Article 28.1 (Exceptions and General Provisions – General Exceptions), and requests in writing, no later than 10 days after the request for the establishment of a panel is made, that the matter be considered under this Agreement, the complaining Party may, with respect to that matter, thereafter have recourse to dispute settlement solely under this Agreement.
4. If a complaining Party requests the establishment of a panel under this Agreement or its equivalent under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of the other, unless the responding Party makes a request under paragraph 2 or 3, or the forum selected first fails to make findings on the matter in dispute for jurisdictional or procedural reasons.
Article 27.5: Consultations
1. A Party may request consultations with the other Party regarding any matter referred to in Article 27.3.
2. The Party requesting consultations shall deliver the request in writing, and shall set out the reasons for the request, including the identification of the measure, proposed measure, or other matter at issue under Article 27.3, and an indication of the legal basis for the complaint.
3. Unless the Parties decide otherwise, they shall enter into consultations no later than:
(a) 30 days of the date of receipt of the request for consultations; or
(b) 15 days of the date of receipt of the request for consultations in cases of urgency, including those involving perishable goods or other goods or services that lose their quality or commercial value in a short period of time.
4. The Parties shall make every attempt to reach a mutually satisfactory resolution of a matter through consultations under this Article. To this end, each Party shall:
(a) provide sufficient information to enable a full examination of the measure, proposed measure, or other matter at issue under Article 27.3;
(b) treat any information received in the course of consultations that is designated by a Party as confidential or proprietary in nature on the same basis as the Party providing the information; and
(c) make available personnel of its governmental agencies or other regulatory bodies that are responsible for, or have expertise in, the subject matter of the consultations.
5. Consultations are confidential and without prejudice to the rights of the Parties in any other proceedings.
6. Consultations may be held in person or by any other means decided by the Parties. If held in person, consultations shall take place in the territory of the Party to which the request for consultations was made, unless the Parties decide otherwise.
Article 27.6: Good Offices, Conciliation, and Mediation
1. The Parties may at any time decide to undertake an alternative dispute resolution procedure, such as good offices, conciliation, or mediation.
2. A Party may suspend or terminate alternative dispute resolution procedures at any time.
3. Alternative dispute resolution procedures are confidential and without prejudice to the rights of the Parties in any other proceedings.
4. If the Parties decide, alternative dispute resolution procedures may continue in parallel while a dispute proceeds for resolution before a panel established under Article 27.7.
Article 27.7: Request for the Establishment of a Panel
1. The complaining Party may request the establishment of a panel if:
(a) the Parties fail to enter into consultations within the relevant time period set out in Article 27.5;
(b) the Parties fail to resolve the matter through consultations within:
(i) 25 days after the date of receipt of the request for consultations for matters referred to in paragraph 3 (b) of Article 27.5; or
(ii) 45 days after the date of receipt of the request for consultations; or
(c) the Parties decide not to enter into consultations.
2. The complaining Party shall deliver a written request for the establishment of a panel to the responding Party. In the request, the complaining Party shall identify the measure or other matter at issue under Article 27.3 and provide a brief summary of the legal basis of the complaint sufficient to present the problem clearly.
3. Upon delivery of the request, the panel is established.
4. A panel shall not be established to review a proposed measure.
Article 27.8: Panel Composition
1. The panel shall comprise three panellists.
2. Within 30 days after the date of receipt of the request for the establishment of the panel, each Party shall appoint a panelist, propose up to four candidates to serve as the chair of the panel and notify each other in writing of the appointments and its proposed candidates to serve as the chair. If a Party fails to appoint a panellist within this time, the other Party shall appoint the panellist from the candidates proposed by the other Party for chair.
3. The Parties shall endeavour to decide on the chair from among the candidates proposed within 45 days after the date of receipt of the request for the establishment of the panel. If the Parties fail to decide on the chair within this time period, within a further seven days the Parties shall select the chair by lot from the candidates proposed and appoint the chair to the panel, unless the Parties decide otherwise.
4. If a panellist withdraws, is removed, or becomes unable to serve, all time periods applicable to that panel’s proceedings shall be suspended until the date a replacement panellist is appointed. The Parties shall appoint the replacement as follows:
(a) for a panellist appointed by a Party, that Party shall appoint a replacement within 15 days, failing which the replacement shall be appointed in accordance with the second sentence of paragraph 2;
(b) for a chair, the Parties shall select a replacement within 15 days, failing which the replacement shall be appointed in accordance with the second sentence of paragraph 3; and
(c) if an appointment in subparagraph (a) or (b) would require selecting from the chair candidates and there are no remaining chair candidates, each Party shall propose up to three additional candidates within 15 days and the Parties shall then follow the applicable procedure in sub-paragraph (a) or (b).
5. If a Party believes that a panellist is in violation of the Code of Conduct referenced in subparagraph 1(f) of Article 27.9, the Parties shall consult. If the Parties concur on removing the panellist, the panellist shall be removed and a new panellist shall be selected in accordance with this Article.
6. If a Party believes that a panellist or a candidate for chair does not meet the requirements in Article 27.9, the Parties shall consult within 10 days after that individual was appointed or proposed. If the Parties concur that a panellist does not meet the requirements, the panellist shall be removed, and a new panellist shall be selected in accordance with paragraph 4 of this Article. If the Parties concur that a candidate for chair does not meet the requirements, the candidate shall be withdrawn, and a new candidate proposed within 10 days.
Article 27.9: Qualifications of Panellists
1. Each panellist shall:
(a) have expertise or experience in law, international trade, other matters covered by this Agreement, or in the settlement of disputes arising under international trade agreements;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
(c) be independent, serve in their individual capacity, not be affiliated with or employed by any Party, and not take instructions from any Party or organization;
(d) not be a national of any Party, nor have their usual place of residence in the territory of any Party;
(e) not have dealt with the matter at issue in any capacity, including involvement in any alternative dispute resolution proceedings referred to in Article 27.6; and
(f) comply with the Code of Conduct set out in Annex 27-C.
2. The Parties shall endeavour to include greater diversity in panel appointments, including through the increased representation of women and other under-represented groups, when selecting individuals for panel appointments.
3. For a dispute arising under Chapter 12 (Environment) or Chapter 13 (Labour), each Party shall select panellists in accordance with the following requirements, in addition to those set out in paragraphs 1 and 2:
(a) in any dispute arising under Chapter 12 (Environment), panellists other than the chair shall have expertise or experience in environmental law or practice; and
(b) in any dispute arising under Chapter 13 (Labour), panellists other than the chair shall have expertise or experience in labour law or practice.
Article 27.10: Terms of Reference
1. Unless the Parties decide otherwise, within 15 days of the date of the establishment of the panel, the terms of reference shall be:
“To examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of the panel and to make findings, determinations, and recommendations as provided in Article 27.13.”
2. If a complaining Party claims that there is nullification or impairment of benefits in the sense of Annex 27-A, the terms of reference shall so indicate.
3. If a complaining Party requests the panel to make findings as to the degree of adverse trade effects on a Party of any measure found:
(a) to be inconsistent with the obligations in this Agreement, or
(b) to have caused nullification or impairment in the sense of Annex 27-A, the terms of reference shall so indicate.
Article 27.11: Functions of a Panel
1. The panel shall make an objective assessment of the matter before it, including an objective assessment of the facts of the matter and the applicability of and conformity with this Agreement. The panel shall also undertake any additional or other functions that the Parties request.
2. The panel may rule on its own jurisdiction.
3. The panel may, in consultation with the Parties, modify any time period applicable in the panel proceedings and make other procedural or administrative adjustments as may be required for the fairness or efficiency of the proceedings.
4. The panel shall endeavour to make its findings, determinations, and recommendations by consensus. If the panel is unable to reach consensus, it shall make its findings, determinations, and recommendations by a majority of its members.
5. Panellists may provide separate opinions on matters not unanimously agreed. A panel or panellist may not disclose which panellists are associated with a majority or minority opinion.
6. The panel shall interpret this Agreement in accordance with the customary rules of interpretation of public international law, including as reflected in the Vienna Convention on the Law of Treaties. When interpreting an obligation under this Agreement that is incorporated by reference from the WTO Agreement, the panel shall take into account any relevant interpretations in WTO panel and Appellate Body reports adopted by the WTO Dispute Settlement Body as well as any authoritative interpretations adopted by the WTO General Council under Article IX of the WTO Agreement.
7. Unless the Parties decide otherwise, the panel shall perform its functions and conduct its proceedings in a manner consistent with this Chapter and the Rules of Procedure.
Article 27.12: Information and Technical Advice
On the request of a Party, or on its own initiative, a panel may seek information or technical advice from any expert that it deems appropriate, subject to the relevant Rules of Procedure and any additional terms and conditions as the Parties may decide. The Parties shall have an opportunity to comment on information or technical advice obtained.
Article 27.13: Panel Reports
1. Unless the Parties decide otherwise, the panel shall issue its report in accordance with this Chapter.
2. The panel shall base its report on this Agreement, applied and interpreted in accordance with Article 27.11, the submissions and arguments of the Parties and on any information or technical advice put before it under Article 27.12.
3. The findings, determinations and recommendations of the panel must not add to or diminish the rights and obligations of the Parties under this Agreement.
4. The panel shall issue an interim report to the Parties within 150 days of the date the last panellist is appointed or, in cases of urgency, within 120 days. The interim report must contain:
(a) findings of fact;
(b) a determination as to whether a responding Party has conformed with its obligations under this Agreement and any other finding or determination requested in the terms of reference; and
(c) recommendations for resolution of the dispute, if requested by a Party.
5. The interim report is confidential.
6. A Party may submit written comments to the panel on its interim report, subject to time limits that may be set by the panel. After considering any written comments, the panel may, on its own initiative or on the request of a Party:
(a) request the views of a Party;
(b) reconsider its interim report; or
(c) make any further examination that it considers appropriate.
7. In exceptional cases, if the panel considers that it cannot issue its report within the time period in paragraph 4, it shall inform the Parties of the reasons for the delay together with an estimate of when it will issue its report. The panel shall not exceed an additional period of 30 days, unless the Parties decide otherwise.
8. The panel shall issue a final report to the Parties within 30 days of the issuance of the interim panel report or, in cases of urgency, within 15 days.
9. Unless the Parties decide otherwise, each Party shall make the final report publicly available 15 days after it is issued, subject to the protection of information designated for confidential treatment.
Article 27.14: Implementation of the Panel’s Report
1. On receipt of the final report of a panel, the Parties shall decide on the resolution of the dispute. Unless the Parties decide otherwise, the resolution shall be in conformity with the determinations and any recommendations of the panel.
2. If possible, the resolution shall be:
(a) removal of a measure or other matter found by the panel to be inconsistent or otherwise not in conformity with an obligation of this Agreement; or
(b) removal of the nullification or impairment in the sense of Annex 27-A.
3. If the Parties are unable to decide on a resolution within 45 days of the date the final report was issued to the Parties, or within any other period as the Parties may decide, the responding Party shall, if so requested by the complaining Party, enter into negotiations with a view to deciding mutually satisfactory compensation.
Article 27.15: Non-Implementation – Suspension of Benefits
1. A complaining Party may, subject to paragraph 5, suspend the application to a responding Party of benefits of equivalent effect until such time as that the Parties have reached a decision on a resolution of the dispute if:
(a) in its final report a panel has determined that a measure or other matter is inconsistent with the obligations of this Agreement or that there is nullification or impairment in the sense of Annex 27-A; and
(b) no decision on compensation has been reached under paragraph 3 of Article 27.14 within 30 days of the date of that complaining Party’s request;
(c) 45 days have passed following the issuance of the final report, unless a complaining Party has requested compensation under paragraph 3 of Article 27.14; or
(d) the Parties have decided on the resolution of the dispute or on compensation, and the complaining Party considers that the responding Party has failed to observe the terms of that decision.
2. A complaining Party may suspend benefits under paragraph 1 no sooner than
10 days after providing a written notice to the responding Party that specifies the level of benefits that the complaining Party proposes to suspend.
3. In considering which benefits to suspend under paragraph 1:
(a) the complaining Party should first seek to suspend benefits or other obligations in the same sector as that affected by the measure or other matter that the panel has found to be inconsistent with the obligations of this Agreement or to have caused nullification or impairment in the sense of Annex 27-A; and
(b) the complaining Party that considers it is not practicable or effective to suspend benefits or other obligations in the same sector may suspend benefits in another sector.
4. The level of nullification and impairment shall be calculated starting from the date the panel issued its final report to the Parties.
5. A complaining Party shall suspend benefits temporarily, and only until:
(a) the measure or other matter found to be inconsistent with the obligations of this Agreement or otherwise nullifying or impairing benefits in the sense of Annex 27-A has been brought into conformity with this Agreement, including as a result of the panel process described in Article 27.13; or
(b) the Parties have otherwise reached a mutually satisfactory resolution.
Article 27.16: Review of Compliance and Suspension of Benefits
1. A responding Party may, by written notice to the other Party, request that a panel be reconvened to make a determination with respect to:
(a) whether the level of benefits suspended by a complaining Party under paragraph 1 of Article 27.15 is manifestly excessive; or
(b) a disagreement between the Parties as to the existence or consistency with this Agreement of a measure taken to comply with the determinations or recommendations of the previously established panel.
2. In the written notice of the request referred to in paragraph 1, the responding Party shall identify the measure or other matter at issue under Article 27.3, and provide a brief summary of the legal basis of the complaint sufficient to present the problem clearly.
3. The panel shall be reconvened either:
(a) upon receipt by the other Party of a written notice referred to in paragraph 1; or