2. Pursuant to paragraph 1, each Party shall:
(a) support the dissemination and use of relevant international instruments that it has endorsed or supported, such as the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy adopted in Geneva in November 1977, the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights endorsed by the Human Rights Council in its resolution 17/4 of 16 June of 2011 and the OECD Guidelines for Multinational Enterprises: Recommendations for Responsible Business Conduct in a Global Context annexed to the OECD Declaration on International Investment and Multinational Enterprises done in Paris on 21 June 1976.
(b) promote the voluntary uptake by enterprises of corporate social responsibility or responsible business practices, consistent with the guidelines and principles referred to in point (a); and
(c) provide a supportive policy framework for the effective implementation of the principles and guidelines referred to in point (a).
3. The Parties recognise the utility of international sector-specific guidelines in the areas of corporate social responsibility and responsible business conduct and shall promote joint work in this regard. In respect of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and its supplements, the Parties adhering to or supporting that Guidance shall also promote the uptake thereof.
4. The Parties shall exchange information as well as best practices and, if
appropriate, cooperate on issues covered by this Article, including in relevant regional and international fora.
ARTICLE 26.12
Other trade and investment-related initiatives favouring sustainable development
1. The Parties confirm their commitment to enhance the contribution of trade and investment to the objective of sustainable development in its economic, social and environmental dimensions.
2. Pursuant to paragraph 1, the Parties shall:
(a) promote the objectives of the Decent Work Agenda, in accordance with the ILO Declaration on Social Justice for a Fair Globalization, including the minimum living wage, inclusive social protection, health and safety at work, and other aspects related to working conditions;
(b) encourage trade and investment in goods and services as well as the voluntary exchange of practices and technologies that contribute to enhanced social and environmental conditions, including those of particular relevance for climate change mitigation and adaptation, in a manner consistent with this Part of the Agreement; and
(c) cooperate, as appropriate, bilaterally, regionally and in international fora on matters covered by this Article.
ARTICLE 26.13
Working together on trade and sustainable development
1. The Parties recognise the importance of working together in order to achieve the objectives of this Chapter. They may work together on, among others:
(a) labour and environmental aspects of trade and sustainable development in international fora, including in particular the WTO, the ILO, the UNEP, the UNCTAD, the United Nations High-level Political Forum for Sustainable Development and MEAs;
(b) the impact of labour and environmental law and standards on trade and investment;
(c) the impact of trade and investment law on labour and the environment; and
(d) voluntary sustainability assurance schemes, such as fair and ethical trade schemes and eco-labels, through the sharing of experience and information on such schemes.
2. In order to achieve the objectives of this Chapter, the Parties may also work together on the trade-related aspects of:
(a) the implementation of fundamental, priority and other up to date ILO Conventions;
(b) the ILO Decent Work Agenda, including on the interlinkages between trade and full and productive employment, labour market adjustment, core labour standards, decent work in global supply chains, social protection and social inclusion, social dialogue, skills development and gender equality;
(c) the implementation of MEAs and support for each other's participation in such MEAs;
(d) the dynamic international climate change regime under the UNFCCC, in particular the implementation of the Paris Agreement;
(e) the Montreal Protocol on Substances that Deplete the Ozone Layer done at Montreal on 16 September 1987 and any Amendments to it ratified by the Parties, in particular measures to control the production and consumption of and trade in Ozone Depleting Substances (ODS) and Hydrofluorocarbons (HFCs), and the promotion of environmentally friendly alternatives to them, and measures to address illegal trade of substances regulated by that Protocol;
(f) corporate social responsibility, responsible business conduct, responsible management of global supply chains and accountability, including with regard to implementation, follow-up and dissemination of relevant international instruments;
(g) the sound management of chemicals and waste;
(h) the conservation and sustainable use of biological diversity, and the fair and equitable sharing of the benefits arising from the utilisation of genetic resources, including by appropriate access to such resources, as referred to in Article 26.7;
(i) combatting wildlife trafficking, as referred to in Article 26.7;
(j) the promotion of the conservation and sustainable management of forests with a view to reducing deforestation and illegal logging, as referred to in Article 26.8;
(k) private and public initiatives contributing to the objective of halting deforestation, including those linking production and consumption through supply chains, consistent with SDGs 12 and 15 of the 2030 Agenda;
(l) the promotion of sustainable fishing practices and trade in sustainably managed fish products, as referred to in Article 26.9; and
(m) sustainable consumption and production initiatives consistent with SDG 12 of the 2030 Agenda, including, but not limited to, circular economy and other sustainable economic models aimed at increasing resource efficiency and reducing waste generation.
ARTICLE 26.14
Subcommittee on trade and sustainable development and contact points
1. The Subcommittee on trade and sustainable development, established pursuant to Article 9.9(4), shall have the following functions, in addition to those listed in Articles 2.4 and 9.9:
(a) facilitate and monitor cooperation activities undertaken under this Chapter;
(b) carry out the tasks referred to in Articles 26.16 to 26.18; and
(c) conduct the preparatory internal work necessary for the Joint Committee in trade configuration, including with regard to topics for discussion with Domestic Advisory Groups referred to in Article 2.7.
2. The Subcommittee shall publish a report after each of its meetings.
3. Each Party shall designate a contact point within its administration to facilitate communication and coordination between the Parties on any matter relating to the implementation of this Chapter.
ARTICLE 26.15
Dispute resolution
1. The Parties shall make all efforts through dialogue, consultation, exchange of information and cooperation to address any disagreement on the interpretation or application of this Chapter.
2. Any time period mentioned in Articles 26.16 and 26.17 may be extended by mutual agreement of the Parties.
3. All time periods established under this Chapter shall be counted in calendar days from the day following the act or fact to which they refer.
4. For the purposes of this Chapter, Parties to a dispute under this Chapter shall be as set out in Article 29.3.
5. No Party shall have recourse to dispute settlement under Chapter 29 for any matter arising under this Chapter.
ARTICLE 26.16
Consultations
1. A Party may request consultations with the other Party regarding the interpretation or application of this Chapter by delivering a written request to the contact point of the other Party designated pursuant to Article 26.14(3). The request shall present the matter at issue clearly and provide a brief summary of the claims under this Chapter, including an indication of the relevant provisions thereof and explaining how it affects the objectives of this Chapter, as well as any other information the Party deems relevant. Consultations shall start promptly after a Party delivers a request for consultations, and in any event no later than 30 (thirty) days after the date of receipt of the request.
2. Consultations shall be held in person or, if so agreed by the Parties, by videoconference or other electronic means. If the consultations are held in person, they shall be held in the territory of the Party to whom the request is made, unless the Parties agree otherwise.
3. The Parties shall enter into consultations with the aim of reaching a mutually satisfactory resolution of the matter. In matters related to the multilateral agreements referred to in this Chapter, the Parties shall take into account information from the ILO or from relevant organisations or bodies responsible for MEAs ratified by both Parties, in order to promote coherence between the work of the Parties and these organisations. If relevant, the Parties may agree to seek advice from such organisations or bodies, or any other expert or body they deem appropriate.
4. If a Party considers that the matter needs further discussion, it may request in writing that the Subcommittee on trade and sustainable development be convened and notify that request to the contact point designated pursuant to Article 26.14(3). Such a request shall be made no earlier than 60 (sixty) days from the date of the receipt of the request under paragraph 1. The Subcommittee on trade and sustainable development shall meet promptly and endeavour to reach a mutually satisfactory resolution of the matter.
5. The Subcommittee on trade and sustainable development shall take into account any views on the matter provided by the Domestic Advisory Groups referred to in Article 2.7 as well as any expert advice.
6. Any resolution reached by the Parties shall be made publicly available.
ARTICLE 26.17
Panel of experts
1. If, within 120 (one hundred and twenty) days after a request for consultations under Article 18.16, no mutually satisfactory resolution has been reached, a Party may request the establishment of a panel of experts to examine the matter. Any such request shall be made in writing to the contact point of the other Party designated pursuant to Article 26.14(3) and shall identify the reasons for requesting the establishment of a panel of experts, including a description of the measures at issue and the relevant provisions of this Chapter that it considers applicable.
2. Except as otherwise provided for in this Article, Articles 29.9, 29.11, 29.12, 29.26 and 29.27, as well as the Rules of Procedure in Annex 29-A and the Code of Conduct in Annex 29-B, apply.
3. The Subcommittee on trade and sustainable development shall, at its first meeting after the date of entry into force of this Agreement, establish a list of at least 15 (fifteen) individuals who are willing and able to serve on a panel of experts. The list shall be composed of 3 (three) sub‑lists: 1 (one) sub-list proposed by the EU, 1 (one) sub-list proposed by MERCOSUR and 1 (one) sub-list of individuals that are not nationals of either Party. Each Party shall propose at least 5 (five) individuals for its sub-list. The Parties shall also select at least 5 (five) individuals for the list of individuals that are not nationals of either Party. The Subcommittee on trade and sustainable development shall ensure that the list is kept up to date and that the number of experts is maintained at least at 15 (fifteen) individuals.
4. The individuals referred to in paragraph 3 shall have specialised knowledge of, or expertise in, matters addressed in this Chapter, including labour, environmental or trade law, or in the resolution of disputes arising under international agreements. They shall serve in their individual capacities, be independent and not take instructions from any organisation or government with regard to issues related to the disagreement, or be affiliated with the government of any Party. They shall also comply with Annex 29-B.
5. A panel of experts shall be composed of 3 (three) members, unless the Parties agree otherwise. The chairperson shall be from the sub-list of individuals that are not nationals of either Party. A panel of experts shall be established according to the procedures set out in paragraphs 1 to 4 of Article 21.9. The experts shall be selected from the relevant individuals on the sub-lists referred to in paragraph 3 of this Article, in accordance with the relevant provisions of paragraphs 2, 3 and 4 of Article 29.9.
6. Unless the Parties agree otherwise within 7 (seven) days after the date of establishment of the panel of experts, as defined in Article 29.9(5), the terms of reference shall be:
"to examine, in the light of the relevant provisions of Chapter 26 of the Partnership Agreement between the European Union and its Member States, of the one part, and the Common Market of the South, the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, of the other part, the matter referred to in the request for the establishment of the panel of experts, and to issue a report, in accordance with Article 26.17, making recommendations for the resolution of the matter".
7. With regard to matters related to the respect of multilateral agreements referred to in this Chapter, the opinions of experts or information requested by the panel of experts in accordance with Article 29.12 should include information and advice from the relevant ILO or MEA bodies. Any information obtained under this paragraph shall be provided to both Parties for their comments.
8. The panel of experts shall interpret the provisions of this Chapter in accordance with the customary rules of interpretation of public international law.
9. The panel of experts shall issue to the Parties an interim report within 90 (ninety) days after the establishment of the panel of experts, and a final report no later than 60 (sixty) days after issuing the interim report. Those reports shall set out the findings of fact, the applicability of the relevant provisions and the basic rationale behind any findings and recommendations. Either of the involved Parties may submit written comments on the interim report to the panel of experts within 45 (forty‑five) days after the date of issue of the interim report. After considering any such written comments, the panel of experts may modify the report and make any further examination it considers appropriate. If it considers that the deadlines set in this paragraph cannot be met, the chairperson of the panel of experts shall notify the Parties in writing, stating the reasons for the delay and the date on which the panel plans to issue its interim or final report.
10. The Parties shall make the final report publicly available within 15 (fifteen) days after its submission by the panel of experts.
11. The Parties shall discuss appropriate measures to be implemented, taking into account the report and recommendations of the panel of experts. The Party complained against shall inform its Domestic Advisory Group referred to in Article 2.7 and the other Party of its decisions on any actions or measures to be implemented no later than 90 (ninety) days after the report has been made publicly available. The Subcommittee on trade and sustainable development shall monitor the follow-up to the report of the panel of experts and its recommendations. The Domestic Advisory Group referred to in Article 2.7 may submit observations to the Subcommittee on trade and sustainable development in this regard.
ARTICLE 26.18
Review
1. For the purposes of facilitating the achievement of the objectives of this Chapter, the Parties shall discuss through the meetings of the Subcommittee on trade and sustainable development its effective implementation, including a possible review of its provisions, taking into account, among others, the experience gained, policy developments in each Party, developments in international agreements and views presented by stakeholders.
2. The Subcommittee on trade and sustainable development may recommend to the Parties amendments to the relevant provisions of this Chapter reflecting the outcome of the discussions referred to in paragraph 1.
CHAPTER 27
TRANSPARENCY
ARTICLE 27.1
Definitions
For the purposes of this Chapter the following definitions apply:
(a) "administrative decision" means a decision that affects the rights or obligations of a person in an individual case and covers an administrative action or failure to take an administrative action or decision as provided for in a Party's laws and regulations;
(b) "interested person" means any natural or juridical person that may be affected by a measure of general application; and
(c) "measure of general application" means a law, regulation, judicial decision, procedure or administrative ruling of general application that may have an impact on any matter covered by this Part of the Agreement.
ARTICLE 27. 2
Objectives
Recognising the impact which its regulatory environment may have on trade and investment between the Parties, each Party shall aim to promote a transparent and predictable regulatory environment and efficient procedures for economic operators, especially SMEs, in accordance with the provisions of this Chapter.
ARTICLE 27.3
Publication
1. Each Party shall ensure that a measure of general application with respect to any matter covered by this Part of the Agreement:
(a) is promptly published via an officially designated medium and, if feasible, by electronic means or is otherwise made available in such a manner as to enable any person to become acquainted with it;
(b) provides an explanation of its objective and rationale; and
(c) allows for sufficient time between its publication and entry into force, except when this is not possible for reasons of urgency.
2. To the extent possible, when adopting or amending major laws or regulations of general application with respect to any matter covered by this Part of the Agreement, each Party shall, in accordance with its respective rules and procedures:
(a) publish in advance the draft law or regulation or consultation documents providing details of the objective of, and rationale for, such law or regulation;
(b) provide interested persons and the other Party a reasonable opportunity to comment on such draft law or regulation or consultation documents; and
(c) endeavour to take into consideration the comments received on such draft law or regulation or consultation documents.
ARTICLE 27.4
Enquiries
1. No later than 3 (three) years after the date of entry into force of this Agreement, each Party shall establish or maintain appropriate mechanisms for receiving and responding to enquiries from any person regarding any measure of general application which is proposed or in force and how it would be applied with respect to any matter covered by this Part of the Agreement.
2. Upon request of a Party, the other Party shall promptly provide information and respond to enquiries pertaining to any measure of general application or any proposal to adopt or amend any measure of general application with respect to any matter covered by this Part of the Agreement that the requesting Party considers may affect the operation of this Part of the Agreement.
ARTICLE 27.5
Administration of measures of general application
1. Each Party shall administer in an objective, impartial and reasonable manner all measures of general application with respect to any matter covered by this Part of the Agreement.
2. Each Party, when applying measures of general application to persons, goods or services of the other Party in specific cases, shall:
(a) endeavour to provide persons that are directly affected by administrative proceedings 87 with reasonable notice, in accordance with its laws and regulations, when administrative proceedings are initiated, including a description of the nature of the proceedings, a statement of the legal authority under which the proceedings are initiated and a general description of any issues in question; and
(b) afford such interested persons a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative decision, in so far as time, the nature of the proceedings and the public interest permit.
ARTICLE 27.6
Review and appeal
1. Each Party shall establish or maintain judicial, arbitral or administrative tribunals or procedures for the purpose of the prompt review or appeal and, if warranted, the correction of an administrative decision with respect to any matter covered by this Part of the Agreement. Each Party shall ensure that its procedures for review or appeal are carried out in a non-discriminatory and impartial manner by tribunals that are impartial and independent of the authority entrusted with administrative enforcement, and composed by individuals with no substantial interest in the outcome of the matter.
2. Each Party shall ensure that the parties to the procedures referred to in paragraph 1 are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, if required by its law, the record compiled by the administrative authority.
3. Each Party shall ensure that the decision referred to in point (b) of paragraph 2 shall, subject to appeal or further review as provided for in its law, be implemented by, and govern the practice of the authority entrusted with administrative enforcement with respect to the administrative decision concerned.
ARTICLE 27.7
Regulatory quality and performance and good regulatory practices
1. The Parties recognise the principles of good regulatory practices and shall promote regulatory quality and performance. In particular, the Parties shall endeavour to:
(a) encourage the use of regulatory impact assessments when developing major initiatives; and
(b) establish or maintain procedures to promote the regular retrospective evaluation of measures of general interest.
2. The Parties shall endeavour to cooperate in regional and multilateral fora to promote good regulatory practices and transparency in respect of international trade and investment in areas covered by this Part of the Agreement.
ARTICLE 27.8
Relation to other Chapters
This Chapter applies without prejudice to any specific rules in other Chapters of this Part of the Agreement.
CHAPTER 28
EXCEPTIONS
ARTICLE 28.1
Security Exceptions
Nothing in this Part of the Agreement shall be construed:
(a) to require a Party to furnish or allow access to any information the disclosure of which it considers contrary to its essential security interests; or
(b) to prevent a Party from taking an action which it considers necessary for the protection of its essential security interests:
(i) connected to the production of or traffic in arms, ammunition and implements of war and to such traffic and transactions in other goods and materials, services and technology, and to economic activities, carried out directly or indirectly for the purpose of supplying a military establishment;
(ii) relating to fissionable and fusionable materials or the materials from which they are derived; or
(iii) taken in time of war or other emergency in international relations; or
(c) to prevent a Party from taking any action in pursuance of its international obligations under the UN Charter for the purpose of maintaining international peace and security.
ARTICLE 28.2
General exceptions
1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in Chapters 10, 12 and 25 shall be construed to prevent the adoption or enforcement by a Party of measures referred to in Article XX of the GATT 1994. To that end, Article XX of the GATT 1994, including its Notes and Supplementary Provisions, is incorporated into and made part of this Part of the Agreement, mutatis mutandis.
2. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on investment liberalization or trade in services, nothing in Chapters 18 and 25 shall be construed to prevent the adoption or enforcement by either Party of measures:
(a) necessary to protect public security or public morals or to maintain public order 88 ;
(b) necessary to protect human, animal or plant life or health;
(c) relating to the conservation of exhaustible natural resources, if such measures are applied in conjunction with restrictions on domestic investors or on the domestic supply or consumption of services;
(d) necessary for the protection of national treasures of artistic, historic or archaeological value;
(e) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Part of the Agreement including those relating to:
(i) the prevention of deceptive and fraudulent practices 89 or to deal with the effects of a default on contracts;
(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts; or
(iii) safety.
3. Nothing in Chapter 18 shall be construed to prevent the adoption or enforcement of a measure which implements a requirement imposed or enforced by a court, administrative tribunal or competition authority to remedy a violation of competition laws and regulations.
4. For greater certainty, the Parties understand that, to the extent that such measures are otherwise inconsistent with the provisions of Chapters 10, 12 and 25:
(a) the measures referred to in point (b) of Article XX of GATT 1994 include environmental measures, which are necessary to protect human, animal or plant life or health;
(b) point (g) of Article XX of GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources; and