International Labour Standards and Agreements
1. The Parties, in accordance with their obligations as members of the ILO, reaffirm their commitments to respect, promote and realise, the principles concerning the fundamental rights, contained in the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up adopted by the International Labour Conference at its 86* Session in 1998, namely:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) elimination of all forms of forced or compulsory labour;
(c) effective abolition of child labour; and
(d) elimination of discrimination in respect of employment and occupation.
2. The Parties reaffirm their commitment, under the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, to recognising full and productive employment and decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation and to promoting the development of international trade in a way that is conducive to full and productive employment and decent work for all.
3. The Parties recall the obligations as members of the ILO to effectively implement, in accordance with the ILO Declaration on Fundamental Principles and Rights at Work of 1998, the ILO Fundamental Conventions which they have ratified and to make continued and sustained efforts towards ratifying the fundamental ILO Conventions. The Parties will exchange information on the respective situation and advancements as regards the other ILO Conventions.
4. The violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage. Labour standards shall not be used for protectionist trade purposes.
Article 9.6. Multilateral Environmental Agreements and Environmental Principles
The Parties reaffirm their commitment to the effective implementation in their laws and practices of the multilateral environmental agreements to which they are party. The Parties also reaffirm their adherence to environmental principles reflected in the international instruments referred to in Article 9.1.
Article 9.7. Promotion of Trade and Investment Favouring Sustainable Development
1. The Parties shall strive to facilitate and promote foreign investment, trade in and dissemination of goods and services beneficial to sustainable development, including:
(a) environmental technologies, sustainable renewable energy, organic production, energy efficient and eco-labelled goods and services, including through addressing related non-tariff barriers;
(b) goods and services that are the subject of schemes such as fair and ethical trade.
2. The Parties shall endeavour to facilitate and promote the development of practices and programmes aiming at fostering appropriate economic returns from the conservation and sustainable use of the environment, such as ecotourism.
3. To this end, the Parties agree to exchange views and may consider, jointly or bilaterally, cooperation in this area.
4. The Parties shall encourage corporate social responsibility, as well as cooperation between enterprises in relation to goods, services and technologies that contribute to sustainable development and are beneficial to the environment.
Article 9.8. Trade In Forest-Based Products
1. In order to promote the sustainable management of forest resources and thereby, inter alia, reduce greenhouse emissions from deforestation and degradation of natural forests related to activities beyond the forest sector, the Parties commit to work together in the relevant multilateral fora in which they participate to improve forest law enforcement and governance and to promote trade in legal and sustainable forest-based products.
2. Useful instruments to achieve this objective may include, inter alia, effective use of Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) with regard to endangered timber species; certification schemes for sustainably harvested forest products; regional or bilateral Forest Law Enforcement Governance and Trade (FLEGT) Voluntary Partnership Agreements.
Article 9.9. Cooperation In International Fora
The Parties shall strive to strengthen their cooperation on trade and investment related labour and environmental issues of mutual interest in relevant bilateral, regional and multilateral fora in which they participate.
Article 9.10. Implementation and Consultations
1. The Parties shall designate the administrative entities which shall serve as contact points for the purpose of implementing this Chapter.
2. The Parties shall cooperate, through the contact points referred to in paragraph 1, regarding any matter arising under this Chapter. Cooperation may include the exchange of pertinent information that is available to the Parties. No Party shall be required to disclose information that is confidential according to its legislation.
3. To foster understanding between the Parties, or to address any matter arising under this Chapter, or if a Party considers that a measure of another Party does not comply with the obligations under this Chapter, a Party may request consultations within the Joint Committee. This request shall indicate the reasons for the consultations. Consultations shall be held promptly with a view to reaching a conclusion consistent with the objectives set forth in this Chapter. The Parties concerned shall give to the Joint Committee all the support and information needed.
4. No Party may have recourse to dispute settlement under Chapter 12 for any matter arising under this Chapter.
Article 9.11. Review
The Parties shall periodically review in the Joint Committee progress achieved in pursuing the objectives set out in this Chapter and consider future relevant international developments in order to further promote these objectives.
Chapter 10. Cooperation
Article 10.1. Objectives and Scope
1. The Parties declare their readiness to foster trade, economic cooperation and technology transfer in order to facilitate the implementation of the overall objectives of this Agreement, in particular to enhance trading and investment opportunities arising from this Agreement and contribute to sustainable development.
2. The provisions set out in this Chapter shall have a cooperative nature and shall not be subject to dispute settlement under Chapter 12 of this Agreement.
Article 10.2. Methods and Means
1. Cooperation and technical assistance provided by the EFTA States for the implementation of this Chapter shall be carried out through programmes administered by the EFTA Secretariat.
2. Parties shall cooperate with the objective of identifying and employing the most effective methods and means for the implementation of this Chapter. To this end they may coordinate efforts with relevant international organisations.
3. Sustainable development shall be integrated and reflected in the implementation of cooperation, assistance and technology transfer in the various sectors to which it is relevant.
4. Means of cooperation and assistance may include:
(a) exchange of information, technology transfer and training;
(b) implementation of joint actions such as seminars and workshops; and
(c) technical and administrative assistance.
Article 10.3. Fields of Cooperation
Cooperation, assistance and technology transfer may cover any fields jointly identified by the Parties that may serve to enhance the Parties and their economic operators capacities to benefit from increased international trade and investment, including in particular:
(a) promotion and facilitation of exports of goods and services to the other Parties, and promotion of market opportunities;
(b) customs and origin matters, including vocational training in the customs field;
(c) technical regulations and sanitary and phytosanitary measures, including standardisation and certification;
(d) regulatory assistance and implementation of laws in areas such as intellectual property and public procurement; and
(e) regulatory assistance and implementation of laws concerning trade related aspects of labour and environmental issues, including institutional capacity of labour and environmental administrations.
Article 10.4. Contact Points
The Parties shall exchange names and addresses of designated contact points for matters pertaining to cooperation.
Chapter 11. Institutional Provisions
Article 11.1. Joint Committee
1. The Parties hereby establish the EFTA-Central America Joint Committee (hereinafter referred to as the Joint Committee) comprising representatives of each Party at the ministerial level with responsibility for trade-related matters, in accordance with the Parties' respective legal frames, their designees or at a senior official level selected for this purpose.
2. The Joint Committee shall:
(a) supervise and review the implementation of this Agreement;
(b) keep under review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between the EFTA States and the Central American States;
(c) oversee the further elaboration of this Agreement;
(d) supervise the work of all sub-committees and working groups established under this Agreement;
(e) seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(f) establish its own rules of procedure; and
(g) consider any other matter that may affect the operation of this Agreement.
3. The Joint Committee may:
(a) modify, in fulfilment of the Agreements objectives: Appendices 1-5 to Annex I, Annexes III, IV, V, IX, X, XI, XII, XIII, XIV, Annexes XV, XVI, XVIII, and Annex XX;
(b) modify Annexes I, VII and VIII subject to the fulfilment of the internal legal requirements of each Party; and
(c) except as otherwise provided for in this Article, consider and propose to the Parties any amendments to the rights and obligations under this Agreement, including new annexes and appendices to all Chapters of this Agreement, subject to the fulfilment of the internal legal requirements of each Party.
4. Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in paragraph 3(a) within such period as the Joint Committee decides. (2)
5. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks. Except where otherwise provided for in this Agreement, the sub-committees and working groups shall work under a mandate established by the Joint Committee.
6. The Joint Committee may take decisions as provided for in this Agreement. On other matters the Joint Committee may make recommendations.
7. The Joint Committee shall take decisions and make recommendations by consensus. The Joint Committee can also adopt decisions and make recommendations regarding issues related only to one or more Central American States and one or more EFTA States. The vote shall in such cases only be taken among the Parties concerned. Decisions or recommendations adopted by the Joint Committee in accordance with this paragraph, shall only apply to those Parties that adopted the decision or recommendation.
8. The Joint Committee shall meet within one year of the entry into force of this Agreement. Thereafter, it shall meet whenever necessary but normally every two years. Its meetings shall be chaired jointly by one of the EFTA States and by one of the Central American States. Unless otherwise decided by the Parties, sessions of the Joint Committee shall be held alternatively in the territory of an EFTA State and a Central American State, or by any technological means available.
9. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise.
10. The Joint Committee shall establish in its decisions the appropriate provisions for its entry into force. If the domestic legislation of a Party so permits and if decided by the Joint Committee, said Party may apply a decision of the Joint Committee provisionally until such decision enters into force for that Party.
Article 11.2. Contact Points
1. Each Party shall designate, within 60 days of the date of entry into force of this Agreement, a contact point to facilitate communication between the Parties.
2. On 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 with the requesting Party.
Chapter 12. Dispute Settlement
Article 12.1. Scope and Coverage
1. Unless otherwise specified in this Agreement, the provisions of this Chapter shall apply with respect to the avoidance or settlement of any disputes concerning the interpretation or application of this Agreement.
2. Disputes regarding the same matter arising under both this Agreement and the WTO Agreement may be settled in either forum at the discretion of the complaining Party. (13) The forum thus selected shall be used to the exclusion of the other.
3. For the purposes of paragraph 2, dispute settlement procedures under the WTO Agreement are deemed to be selected by a Partys request for the establishment of a panel under Article 6 of the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes, whereas dispute settlement procedures under this Agreement are deemed to be selected upon a request for arbitration pursuant to paragraph 1 of Article 12.4.
4. Before a Party initiates dispute settlement proceedings under the WTO Agreement against another Party, that Party shall notify in writing all other Parties of its intention.
Article 12.2. Good Offices, Conciliation or Mediation
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the Parties so agree. They may begin and be terminated at any time. They may continue while proceedings of an arbitration panel established in accordance with this Chapter are in progress.
2. Proceedings involving good offices, conciliation and mediation shall be confidential and without prejudice to the Parties rights in any further proceedings.
For the purposes of this Chapter, the terms Party, party to the dispute, complaining Party and Party complained against can denote one or more Parties.
Article 12.3. Consultations
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to reach a mutually satisfactory solution of any matter raised in accordance with this Article.
2. A Party may request in writing consultations with another Party if it considers that a measure or other matter is inconsistent with this Agreement, and shall set out the reasons for the request, including identification of the measure or other matter at issue and an indication of the legal basis for the complaint. The Party requesting consultations shall at the same time notify the other Parties in writing of the request. The Party to which the request is made shall reply to the request within 10 days from the date of receipt.
3. Consultations shall commence within 30 days from the date of receipt of the request for consultations. Consultations on urgent matters, including those on perishable goods, shall commence within 15 days from the date of receipt of the request for consultations. If the Party to which the request is made does not reply within 10 days or does not enter into consultations within 30 days from the date of receipt of the request for consultations, or within 15 days for urgent matters, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 12.4.
4. A Party that considers to have a substantial trade interest in the matter may participate in the consultations on delivery of written notice to the other Parties within seven days of the date of receipt of the request for consultations. The Party shall include in its notice an explanation of its substantial trade interest in the matter.
5. The parties to the dispute shall provide sufficient information to enable a full examination of how the measure or other matter is inconsistent with this Agreement and treat any confidential information exchanged in the course of consultations in the same manner as the Party providing the information.
6. Consultations shall be confidential and without prejudice to the rights of the Parties in any further proceedings.
7. Consultations may be held in person or by any technological means that the parties to the dispute decide. If the consultations are held in person, these should take place in the capital of the Party complained against, unless the parties to the dispute agree otherwise.
8. The parties to the dispute shall inform the other Parties of any mutually agreed resolution of the matter.
Article 12.4. Establishment of an Arbitration Panel
1. If the consultations referred to in Article 12.3 fail to settle a dispute within 50 days, or 20 days in relation to urgent matters, including those on perishable goods, from the date of the receipt of the request for consultations by the Party complained against, the complaining Party may request the establishment of an arbitration panel by means of a written request to the Party complained against. A copy of this request shall be communicated to the other Parties so that they may determine whether to participate in the arbitration process.
2. The request for the establishment of an arbitration panel shall identify the specific measure or other matter at issue and provide a brief summary of the legal and factual basis of the complaint.
3. The arbitration panel shall consist of three members who shall be appointed in accordance with the Optional Rules for Arbitrating Disputes between Two States of the Permanent Court of Arbitration, as effective from 20 October 1992 (hereinafter referred to as the Optional Rules) mutatis mutandis. The date of establishment of the arbitration panel shall be the date on which the chairperson is appointed.
4. Unless the parties to the dispute otherwise agree within 20 days from the date of receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel 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 an arbitration panel pursuant to Article 12.4 and to make findings of law and fact together with the reasons, as well as recommendations, if any, for the resolution of the dispute and the implementation of the ruling.
5. Where more than one Party requests the establishment of an arbitration panel relating to the same matter or where the request involves more than one Party complained against, and whenever feasible, a single arbitration panel should be established to examine complaints relating to the same matter.
6. A Party which is not a party to the dispute shall be entitled, on delivery of a written notice to the parties to the dispute, to make written submissions to the arbitration panel, receive written submissions, including annexes, from the parties to the dispute, attend hearings and make oral statements.
Article 12.5. Procedures of the Arbitration Panel
1. Unless otherwise specified in this Agreement or agreed between the parties to the dispute, the procedures of the panel shall be governed by the Optional Rules, mutatis mutandis. 14
2. The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in the light of the relevant provisions of this Agreement interpreted in accordance with rules of interpretation of public international law.
3. The parties to the dispute shall decide on the language of the dispute. If there is no agreement it shall be decided by the arbitration panel. The hearings of the arbitration panel shall be open to the public, unless the parties to the dispute decide otherwise or the arbitral panel decides to close the hearing for the duration of any discussion of confidential information.
4. The location of any hearing of the arbitration panel, if it is held in person, shall be decided by mutual agreement of the parties to the dispute, failing which, it shall be held in The Hague, The Netherlands.
5. There shall be no ex parte communications with the arbitration panel concerning matters under its consideration.
6. A Partys written submissions, written versions of oral statements and responses to questions put by an arbitration panel, shall, at the same time as it is submitted to the arbitration panel, be transmitted by that Party to the other party to the dispute.
7. The Parties shall treat as confidential the information submitted to the arbitration panel which has been designated as confidential by the Party submitting the information.
8. Decisions of the arbitration panel shall be taken by a majority of its members. Any member may furnish separate opinions on matters not unanimously agreed. The arbitration panel shall not disclose which members are associated with majority or minority opinions.
9. The costs of arbitration shall be borne by the parties to the dispute in equal shares.
10. Each Partys individual costs, including administration costs and other costs related to the preparation and the carrying out of the proceedings, shall be borne by each Party.
The following Articles shall not apply: Article 3 (Notice of Arbitration); Article 26 (Interim Measures of Protection); Article 35 (Interpretation of the Award); Article 36 (Correction of the Award); Article 37 (Additional Award) and Article 41 (Deposit of Costs).
11. The arbitration panel shall establish its working schedule allowing the parties to the dispute adequate time to comply with all steps of the proceedings. The working schedule shall establish precise dates and time periods for the submission of all relevant communications, submissions and other documents as well as for any hearings. The arbitration panel may modify its working schedule and promptly notify the parties to the dispute of any such modifications.
12. Notifications shall be submitted as expeditiously as possible to the addressee through diplomatic channels. A copy should be submitted simultaneously to any relevant offices designated and notified by the parties to the dispute.
13. The arbitration panel may rule on its own jurisdiction.
Article 12.6. Panel Reports
1. The arbitration panel shall normally submit an initial report containing its findings and rulings to the parties to the dispute not later than 90 days from the date of establishment of the arbitration panel. A party to the dispute may submit written comments to the arbitration panel on its initial report within 14 days from the date of receipt of the report. The arbitration panel shall normally present to the parties to the dispute a final report within 30 days from the date of receipt of the initial report.
2. The final report, as well as any report under Articles 12.8 and 12.9, shall be communicated to the parties to the dispute. The reports referred to in this paragraph shall be made public, unless the parties to the dispute decide otherwise.
3. Any ruling of the arbitration panel under any provision of this Chapter shall be final and binding upon the parties to the dispute.
Article 12.7. Suspension or Termination of Arbitration Panel Proceedings
1. Where the parties to the dispute agree, an arbitration panel may suspend its work at any time for a period not exceeding 12 months. If the work of an arbitration panel has been suspended for more than 12 months, the arbitration panels authority for considering the dispute shall lapse, unless the parties to the dispute agree otherwise.
2. A complaining Party may withdraw its complaint at any time before the final report has been issued. Such withdrawal is without prejudice to its right to introduce a new complaint regarding the same issue at a later point in time.
3. The parties to the dispute may agree at any time to terminate the proceedings of an arbitration panel established under this Agreement by jointly notifying in writing the chairperson of that arbitration panel.
4. An arbitration panel may, at any stage of the proceedings prior to release of the final report, propose that the parties to the dispute seek to settle the dispute amicably.
Article 12.8. Implementation of the Final Report
1. The Party complained against shall promptly comply with the ruling in the final report. If it is impracticable to comply immediately, the parties to the dispute shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement within 30 days from the date of the issuance of the final report, either party to the dispute may request the original arbitration panel to determine the length of the reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel shall normally be given within 40 days from the date of receipt of that request.
2. The Party complained against shall notify the other party to the dispute of the measure adopted in order to comply with the ruling in the final report, as well as provide a detailed description of how the measure ensures compliance sufficient to allow the other party to the dispute to assess the measure.
3. In case of disagreement as to the existence of a measure complying with the ruling in the final report or to the consistency of that measure with the ruling, such disagreement shall be decided by the same arbitration panel upon the request of either party to the dispute before compensation can be sought or suspension of benefits can be applied in accordance with Article 12.9. The ruling of the arbitration panel shall normally be rendered within 60 days from the date of receipt of the request.
Article 12.9. Compensation and Suspension of Benefits
1. If the Party complained against does not comply with a ruling of the arbitration panel referred to in Article 12.8, or notifies the complaining Party that it does not intend to comply with the final report that Party shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on mutually acceptable compensation. If no such agreement has been reached within 20 days from receipt of the request, the complaining Party shall be entitled to suspend the application of benefits granted under this Agreement but only equivalent to those affected by the measure or matter that the arbitration panel has found to be inconsistent with this Agreement.
2. In considering what benefits to suspend, the complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure or matter that the arbitration panel has found to be inconsistent with this Agreement. The complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.
3. The complaining Party shall notify the Party complained against of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from receipt of that notification, the Party complained against may request the original arbitration panel to rule on whether the benefits which the complaining Party intends to suspend are equivalent to those affected by the measure or matter found to be inconsistent with this Agreement, and whether the proposed suspension is in accordance with paragraphs 1 and 2. The ruling of the arbitration panel shall be given within 45 days from receipt of that request. Benefits shall not be suspended until the arbitration panel has issued its ruling.
4. Compensation and suspension of benefits shall be temporary measures and shall only be applied by the complaining Party until the measure or matter found to be inconsistent with this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or until the parties to the dispute have resolved the dispute otherwise.
5. At the request of a party to the dispute, the original arbitration panel shall rule on the conformity with the final report of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel shall be given within 30 days from receipt of that request.
Article 12.10. Other Provisions
1. Whenever possible, the arbitration panel referred to in Articles 12.8 and 12.9 shall comprise the same arbitrators who issued the final report. If a member of the original arbitration panel is unavailable, the appointment of a replacement arbitrator shall be conducted in accordance with the selection procedure for the original arbitrator.
2. Any time period mentioned in this Chapter may be modified by mutual agreement of the parties to the dispute.
3. When an arbitration panel considers that it cannot comply with the timeframe imposed on it under this Chapter, it shall inform the parties to the dispute in writing of the reasons of the delay together with an estimate of the additional time required. Any additional time required should not exceed 30 days.
Chapter 13. Final Provisions
Article 13.1. Fulfilment of Obligations
The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement.
Article 13.2. Annexes and Appendices
The Annexes to this Agreement, including their Appendices, constitute an integral part of this Agreement.
Article 13.3. Amendments
1. The Parties may agree on any amendment to this Agreement.