(c) "Specific Commitment" shall mean a specific commitment in a Schedule referred to in Article 84.
Article 69. Definitions
For purposes of this Chapter:
1. The following definitions of Article I of the GATS are incorporated into and made part of this Agreement:
(a) "trade in services";
(b) "services";
(c) "measures by the Parties"; and
(d) "a service supplied in the exercise of governmental authority".
2. "Service supplier" means any person that supplies services. (1)
3. "Natural person of a Party" means a natural person who is a national or a permanent resident of a Party under its respective legislation. (2)
4. The following definitions of Article XXVIII of the GATS are hereby incorporated into and made part of this Agreement:
(a) "measure";
(b) "supply of a service"; (c) "measures by Members affecting trade in services";
(d) "commercial presence";
(e) "sector" of a service;
(f) "service of another Member";
(g) "monopoly supplier of a service";
(h) "service consumer";
(i) "person";
(j) "juridical person";
(k) "juridical person of the other party";
(l) "owned", "controlled" and "affiliated"; and
(m) "direct taxes".
Article 70. Market Access
Commitments on market access shall be governed by Article XVI of the GATS, which is hereby incorporated into and made part of this Agreement.
Article 71. National Treatment
Commitments on national treatment shall be governed by Article XVII of the GATS, which is hereby incorporated into and made part of this Agreement.
Article 72. Additional Commitments
Additional commitments shall be governed by Article XVIII of the GATS, which is hereby incorporated into and made part of this Agreement.
Article 73. Domestic Regulation
The rights and obligations of the Parties in respect of domestic regulation shall be governed by Article VI of the GATS, which is hereby incorporated into and made part of this Agreement.
Article 74. Recognition
1. Where a Party recognises, by agreement or arrangement, the education or experience obtained, requirements met or licenses or certifications granted in the territory of a non-Party, that Party shall accord the other Party adequate opportunity to negotiate its accession to such an agreement or arrangement, whether existing or future, or to negotiate a comparable agreement or arrangement with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that the education or experience obtained, requirements met or licenses or certifications granted in the territory of that other Party should also be recognised.
2. Any such agreement or arrangement or autonomous recognition shall be in conformity with the relevant provisions of the WTO Agreement and, in particular, Article VII of the GATS.
Article 75. Movement of Natural Persons
Annex VIII on Movement of Natural Persons Supplying Services forms an integral part of this Agreement.
Article 76. Monopolies and Exclusive Service Suppliers
The rights and obligations of the Parties in respect of monopolies and exclusive service suppliers shall be governed by paragraphs 1, 2 and 5 of Article VIII of the GATS, which are hereby incorporated into and made part of this Agreement.
Article 77. Business Practices
The rights and obligations of the Parties in respect of business practices shall be governed by Article IX of the GATS, which is hereby incorporated into and made part of this Agreement.
Article 78. Safeguards
The Parties note the multilateral negotiations pursuant to Article X of the GATS on the question of emergency safeguard measures based on the principle of non-discrimination. Upon the conclusion of such multilateral negotiations, the Parties shall conduct a review for the purpose of discussing appropriate amendments to this Agreement so as to incorporate the results of such multilateral negotiations.
Article 79. Financial Services
The GATS Annex on Financial Services is hereby incorporated into and made part of this Agreement.
Article 80. Payments and Transfers
1. Except under the circumstances envisaged in Article 81, a Party shall not apply restrictions on international transfers and payments for current transactions relating to its specific commitments.
2. Nothing in this Agreement shall affect the rights and obligations of a Party who is a member of the International Monetary Fund under the Articles of Agreement of the Fund, including the use of exchange actions which are in conformity with the Articles of Agreement of the Fund, provided that a Party shall not impose restrictions on any capital transactions inconsistently with its specific commitments regarding such transactions, except under Article 81 or at the request of the Fund.
Article 81. Restrictions to Safeguard the Balance of Payments
The rights and obligations of the Parties in respect of restrictions to safeguard the balance of payments shall be governed by paragraphs 1 to 3 of Article XII of the GATS, which are hereby incorporated into and made part of this Chapter.
Article 82. Exceptions
The rights and obligations of the Parties in respect of general and security exceptions shall be governed by Articles XIV and paragraph 1 of XIV bis of the GATS, which are hereby incorporated into and made part of this Chapter.
Article 83. Subsidies
1. The Parties shall review the issue of disciplines on subsidies related to trade in services in the light of any disciplines agreed under Article XV of GATS with a view to their incorporation into this Agreement.
2. At the request of a Party which considers that it is adversely affected by a subsidy of the other Party, the Parties shall enter into consultations on such matters with a view to reaching an amicable solution on the matter.
Article 84. Schedule of Specific Commitments
1. Each Party shall set out in a schedule the specific commitments it undertakes under Articles 70, 71 and 72. With respect to sectors where such commitments are undertaken, each Schedule shall specify:
(a) the sectors in which such commitments are undertaken;
(b) terms, limitations and conditions on market access;
(c) conditions and qualifications on national treatment;
(d) undertakings relating to additional commitments; and
(e) where appropriate, the time-frame for the implementation of such commitments.
2. Measures inconsistent with both Articles 70 and 71 shall be inscribed in both the columns relating to Article 70. In this case the inscription will also be considered to provide a condition or qualification to Article 71.
3. The Parties' schedules of Specific Commitments in Annex VII form an integral part of this Agreement.
Article 85. Modification of Schedules
1. A Party may modify or withdraw any commitment in its Schedule, at any time after three years from the date on which that commitment has entered into force, provided that:
(a) it notifies the other Party of its intention to modify or withdraw a commitment no later than three months before the intended date of implementation of the modification or withdrawal; and
(b) it enters into negotiations with the other Party to agree to the necessary compensatory adjustment.
2. In achieving a compensatory adjustment, the Parties shall ensure that the general level of mutually advantageous commitment is not less favourable to trade than provided for in the Schedules prior to such negotiations. 3. If the modifying Party implements its proposed modification or withdrawal and does not comply with the findings of the arbitration, the other Party may modify or withdraw substantially equivalent benefits in conformity with those findings.
Article 86. Transparency
Article III of the GATS is incorporated into and shall form an integral part of this Agreement.
Article 87. Disclosure of Confidential Information
Article III bis of the GATS is incorporated into and shall form an integral part of this Agreement.
Article 88. Review
1. With the objective of further liberalisation of trade in services between them, the Parties commit themselves to review every two years their Schedules of specific commitments.
2. If a Party enters into an agreement with any non-Party countries under Article V or Article V bis of the GATS, it shall upon request from the other Party afford opportunity to discuss the possibility to accord treatment to the other Party no less favourable than the treatment it accords to like services and service suppliers of any non-Party.
Article 89. Denial of Benefits
Article XXVII of the GATS is incorporated into and shall form an integral part of this Agreement.
Chapter 8. Investment
Article 90. Objective
The objective of this Chapter shall be to help the Parties to promote, within the bounds of their own competence, an attractive and stable reciprocal investment climate.
Article 91. Information Exchange
The Parties will promote the establishment of information exchange channels and facilitate full communication and exchange in the following aspects:
(a) on investment policy, laws, as well as economic, trade and commercial information;
(b) exploring the possibility of establishing investment promotion mechanisms; and
(c) providing national information for the potential investors and on investment co-operative parties.
Article 92. Bilateral Investment Agreement
The Parties recognise the importance of the Agreement between the Parties concerning the Promotion and Reciprocal Protection of Investments of 31 March 1994 in creating favourable conditions for investments between the Parties, and thus its contribution to the creation of the free trade area established by this Agreement.
Chapter 9. Co-operation
Article 93. General Objectives
1. The Parties shall establish close co-operation aimed inter alia at:
(a) promoting economic and social development;
(b) stimulating productive synergies, creating new opportunities for trade and investment and promoting competitiveness and innovation; and
(c) increasing and deepening the collaboration activities between the Parties in areas of mutual interest.
2. The Parties reaffirm the importance of all forms of co-operation as a means to contribute to implementing the objectives of this Agreement.
Article 94. Economic Co-operation
In order to advance and strengthen their trade and economic relations, the Parties will encourage and facilitate, as appropriate:
(a) policy dialogue and exchange of information and views on ways to promote and expand trade in goods and services between the Parties;
(b) the exchange of information on important economic and trade issues and on any impediments to furthering economic co-operation between the Parties;
(c) the provision of assistance and facilities to business persons and trade missions that visit each other's country with the knowledge and support of the relevant agencies;
(d) development of existing mechanisms for providing information and identifying opportunities for business co-operation, trade in goods and services, and investment; and
(e) actions of public and/or private sectors in areas of economic interest.
Article 95. Research, Science and Technology
1. Building on their existing agreements on co-operation on research, science and technology, the Parties shall, where appropriate, encourage government agencies, research institutions, universities, private companies and other research organisations in their countries to conclude direct arrangements in support of co-operative activities, programmes or projects within the framework of this Agreement, especially related to trade and commerce.
2. Co-operation in research, science and technology shall in particular focus on the following areas:
(a) seismology, volcanology, geophysics, earthquake engineering and countermeasure for seismic hazard reduction;
(b) marine and polar science as set out in the Memorandum of Understanding on cooperation between the Parties in the field of Marine and Polar Science and Technology, signed on 20 April 2012;
(c) geothermal and geosciences, as set out in the Memorandum of Understanding between the Parties on Geothermal and Geosciences Co-operation, dated 20 April 2012; and
(d) education and research in the health sector.
3. The Parties will encourage and facilitate, as appropriate, the following activities including, but not limited to:
(a) the identification of strategies, in consultation with universities and research centres, to encourage joint postgraduate studies and research visits;
(b) exchange of scientists, researchers and technical experts; and
(c) exchange of information and documentation.
Article 96. Labour and Environment Co-operation
1. The Parties shall enhance their communication and co-operation on labour matters.
2. The Parties will further enhance communication and co-operation in accordance with the Memorandum of Understanding on Environmental Protection Cooperation between the State Environmental Protection Administration of the People's Republic of China and the Ministry for the Environment of Iceland.
Article 97. Development Co-operation
1. The Parties confirm their objective of cooperating in promoting the economic and social development of China.
2. Co-operation referred to in paragraph 1 may for example include material resources, technical assistance and training opportunities, provided by Iceland to China.
3. The Parties shall, in the FTA Joint Commission established under Chapter 10, discuss possible steps to achieve the objective set out in paragraph 1, by jointly identifying priority tasks for development co-operation, and considering the conclusion of a framework agreement on forms and procedures for future co-operation.
Article 98. Education
1. The Parties shall encourage and facilitate, as appropriate, exchanges between their schools and other education-related agencies at all levels.
2. Co-operation in education may focus on:
(a) exchange of information, teaching aids, and demonstration materials;
(b) joint planning and implementation of programs and projects, and joint co-ordination of targeted activities in agreed fields;
(c) development of collaborative training, joint research and development across graduate and postgraduate studies;
(d) exchange of teaching staff, administrators, researchers and students in relation to programs that will be of mutual benefit; and
(e) gaining understanding of the education systems of each Party, education laws and policies including information relevant to the interpretation and evaluation of qualifications.
Article 99. Government Procurement
1. The Parties agree on the importance of co-operation to enhance mutual understanding of their respective government procurement laws and regulations.
2. The Parties shall publish their laws, or otherwise make publicly available their laws, regulations and administrative rulings of general application.
3. The Parties shall, as soon as possible after China concludes successfully its Accession Negotiations to become Party to the plurilateral WTO Agreement on Government Procurement, hold a consultation to consider possible steps to be taken with a view to concluding an agreement on government procurement between the Parties.
4. Co-operation on government procurement is exempt from Article 100.
Article 100. Mechanisms for Co-operation
1. The Parties will establish a national contact point to facilitate communication on possible co-operation activities. The national contact point will work with government agencies, private sector representatives and educational and research institutions in the operation of this Chapter.
2. For the purposes of this Chapter, the FTA Joint Commission established under Chapter 10 shall have the following functions and agreed by the Parties:
(a) to oversee the implementation of the co-operation framework;
(b) to encourage the Parties to undertake co-operation activities under the co-operation framework; and
(c) to make recommendations on the co-operation activities under this Chapter, in accordance with the strategic priorities of the Parties.
Article 101. Dispute Settlement
No Party shall have recourse to Chapter 11 for any issue arising from or relating to this Chapter.
Chapter 10. Institutional Provisions
Article 102. Establishment of the China-iceland Free Trade Agreement Joint Commission
The Parties hereby establish the China-Iceland Free Trade Agreement Joint Commission (FTA Joint Commission), comprising representatives of the Parties as follows:
(a) in the case of China, the Ministry of Commerce (MOFCOM); and
(b) in the case of Iceland, the Ministry for Foreign Affairs and External Trade (MFA).
Article 103. Mandate of the Fta Joint Commission
1. The FTA Joint Commission shall:
(a) supervise and review the implementation and, where appropriate, give interpretation of this Agreement;