2. The Parties may agree to terminate the proceedings before a Panel at any time by jointly notifying the chairperson of the Panel to this effect.
Article 17.15. Implementation of the Final Report
1. On receipt of the final report of a Panel, the Party complained against shall, without undue delay, take any measure necessary to comply in good faith with the final report.
2. The disputing Parties may also agree at any time on a mutually satisfactory solution to the dispute, which normally shall conform with the determinations and recommendations, if any, of the Panel.
3. If it is not practicable to comply immediately, the Parties shall endeavour to agree on a reasonable period of time to comply, within 30 days after the date of the notification of the final report.
4. Failing agreement between the Parties on the reasonable period of time in accordance with paragraph 3, either Party may request the original Panel to determine the length of the reasonable period of time. Such a request shall be made in writing and notified to the other Party. The Panel shall notify its report to the Parties within 20 days from the date of the submission of the request.
5. The reasonable period of time may be extended by mutual agreement of the Parties. All periods contained in this Article constitute part of the reasonable period of time.
Article 17.16. Review of Any Measure Taken to Comply with the Final Report
1. The Party complained against shall notify the complaining Party by the end of the reasonable period of time of any measure that it has taken to comply with the final report of the Panel and provide the details such as the effective date, the relevant text of the measure and a factual and juridical explanation of how the measure taken to comply brings the Party complained against into compliance.
2. In the event of disagreement between the Parties concerning the existence or the consistency of any measure notified under paragraph 1 with the provisions of this Agreement, the complaining Party may request the original Panel to rule on the matter. Such request shall be made in writing, identify the specific measure at issue and explain how such measure is inconsistent with the provisions of this Agreement. The Panel shall notify its report within 45 days of the date of the submission of the request.
Article 17.17. Non-implementation – Compensation and Suspension of Benefits
1. If a Panel has made a determination of the type described in Article 17.12 (Final Report) and the Party complained against fails to notify any measure taken to comply with the final report of the Panel before the expiry of the reasonable period of time, or if the complaining Party considers that the Party complained against has failed to carry out the mutually satisfactory solution, or if the Panel rules that the measure notified under Article 17.16 (Review of any Measure Taken to Comply with the Final Report) is inconsistent with that Party's obligations under this Agreement, the Party complained against shall enter into negotiations with the complaining Party with a view to developing mutually acceptable compensation. This compensation shall be effective from the moment the Parties agree to it until the Party complained against complies.
2. If the disputing Parties:
(a) are unable to agree on compensation within 30 days after the period for developing such compensation has begun; or
(b) have agreed on compensation and the complaining Party considers that the other Party has failed to observe the terms of the agreement, the complaining Party may at any time thereafter provide written notice to the Party complained against that it intends to suspend the application, to that Party, of benefits of equivalent effect. The notice shall specify the level of benefits that the Party proposes to suspend. The complaining Party may begin suspending benefits 30 days after the date on which it provides written notice under this paragraph, or 7 days after the Panel issues its determination under paragraph 3, as the case may be, and until the Party complained against complies.
3. If the Party complained against considers that: (a) the level of benefits proposed to be suspended is manifestly excessive; or (b) it has complied, it may, within 30 days after the complaining Party provides notice under paragraph 2, request that the original Panel be reconvened to consider the matter. The Party complained against shall also deliver its request in writing to the complaining Party. The Panel shall reconvene as soon as possible after delivery of the request and shall notify its determination to the disputing Parties within 60 days after it reconvenes. If the Panel determines that the level of benefits proposed to be suspended is manifestly excessive, it shall determine the level of benefits it considers to be of equivalent effect.
4. The complaining Party may suspend benefits up to the level the Panel has determined under paragraph 3 or, if the Panel has not determined the level, the level the complaining Party has proposed to suspend under paragraph 2, unless the Panel has determined that the Party complained against has complied.
5. In considering what benefits to suspend pursuant to paragraph 2:
(a) a complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure or other matter that the Panel has found to be inconsistent with the obligations of this Agreement; and
(b) a 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.
Article 17.18. Compliance Review
1. In those cases where suspension of benefits has been applied, and the Party complained against considers that it has complied, it may provide written notice to the complaining Party to request the end of the suspension of benefits. If the complaining Party disagrees, the Party complained against may refer the matter to the Panel. The Panel shall notify its report on the matter within 30 days after the Party complained against refers the matter to it.
2. If the Panel decides that the Party complained against has complied, the complaining Party shall promptly reinstate any benefits suspended under Article 17.17 (Non-Implementation – Compensation and Suspension of Benefits).
Article 17.19. Time Periods
1. All time periods laid down in this Chapter and in the Rules of Procedure, including the periods for Panels to notify their reports, shall be counted in calendar days, the first day being the day following the act or fact to which they refer.
2. Any time period referred to in this Chapter and in the Rules of Procedure may be modified by mutual agreement of the Parties in specific proceedings.
Chapter 18. Exceptions
Article 18.1. Definitions
For purposes of this Chapter:
tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement ; and
taxes and taxation measures do not include:
(a) customs duties as defined in Article 1.4 (Definitions of General Application); or
(b) the measures listed in exceptions (b) and (c) to the definition of customs duties in Article 1.4 (Definitions of General Application).
Article 18.2. General Exceptions
1. For purposes of Chapter 2 (Trade in Goods), Chapter 3 (Rules of Origin), Chapter 4 (Customs), Chapter 5 (Sanitary and Phytosanitary Measures) and Chapter 6 (Technical Barriers to Trade), Article XX of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XX(b) of GATT 1994 include environmental measures necessary to protect human, animal, or plant life or health, and that Article XX(g) of GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources.
2. For purposes of Chapter 10 (Trade in Services), Chapter 11 (Investment) and Chapter 12 (Electronic Commerce), Article XIV of GATS (including its footnotes) is incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XIV(b) of GATS include environmental measures necessary to protect human, animal, or plant life or health.
Article 18.3. Essential Security
Nothing in this Agreement shall be construed:
(a) to require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests; or
(b) to preclude a Party from applying measures that it considers necessary for the fulfillment of its obligations with respect to the maintenance or restoration of international peace or security, or the protection of its own essential security interests (34).
Article 18.4. Taxation
1. Except as set out in this Article, nothing in this Agreement shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency. In the case of a tax convention between the Parties, the competent authorities under that convention shall have sole responsibility for determining whether any inconsistency exists between this Agreement and that convention.
3. Notwithstanding paragraph 2: (a) Article 2.3 (National Treatment) and such other provisions of this Agreement as are necessary to give effect to that Article shall apply to taxation measures to the same extent as does Article III of GATT 1994; and (b) Article 2.6 (Export Taxes) shall apply to taxation measures.
4. Articles 11.10 (Expropriation and Nationalization) and 11.16 (Investor-State Dispute Settlement) shall apply to taxation measures to the extent that such a taxation measure constitutes expropriation as provided for therein (35) . An investor that seeks to invoke Article 11.10 (Expropriation and Nationalization) with respect to a taxation measure must first refer to the competent authorities described in paragraph 5, at the time that it gives written notice under Article 11.16 (Investor-State Dispute Settlement), the issue of whether that taxation measure involves an expropriation. If the competent authorities do not agree to consider the issue or, having agreed to consider it, fail to agree that the measure is not an expropriation within a period of 6 months of such referral, the investor may submit its dispute to arbitration under Article 11.16 (Investor-State Dispute Settlement). However, no investor may invoke Article 11.10 (Expropriation and Nationalization) as the basis of a dispute where it has been determined pursuant to this paragraph that the measure is not an expropriation.
5. For purposes of this Article: competent authorities means
(a) in the case of Costa Rica, the Ministerio de Hacienda;
(b) in the case of Singapore, the Ministry of Finance; or their successors.
Article 18.5. Restrictions to Safeguard the Balance of Payments
1. With respect to matters covered by this Agreement, the Parties may adopt or maintain restrictions to safeguard the balance of payments in a manner consistent with the conditions established in the WTO Agreement and with the Articles of Agreement of the International Monetary Fund.
2. For purposes of this Article, any notification or consultation with respect to any restriction to safeguard the balance of payments shall be carried out between the Parties, in accordance with the applicable agreements referred to in paragraph 1.
3. For greater certainty, it is clarified that such restrictions shall be applied on a non-discriminatory basis.
Article 18.6. Disclosure of Information
Nothing in this Agreement shall be construed to require a Party to furnish or allow access to confidential information the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
Chapter 19. Final Provisions
Article 19.1. Annexes, Appendices, and Footnotes
The Annexes, Appendices, and footnotes to this Agreement constitute an integral part of this Agreement.
Article 19.2. Amendments
1. The Parties may agree in writing on any amendment of this Agreement.
2. Such amendment shall enter into force and constitute an integral part of this Agreement on the date on which the Parties have exchanged written notifications confirming the completion of their respective applicable legal procedures for its entry into force, or on such other date as the Parties may agree.
Article 19.3. Amendment of the Wto Agreement
If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended, the Parties shall consult with a view to amending the relevant provision of this Agreement, as appropriate, in accordance with Article 19.2 (Amendments).
Article 19.4. Entry Into Force
This Agreement shall enter into force 60 days after the date on which the Parties have exchanged written notifications confirming the completion of their respective applicable legal procedures for its entry into force.
Article 19.5. Termination
Either Party may terminate this Agreement by written notification to the other Party. The termination shall take effect 6 months after the date of such notification.
Conclusion
IN WITNESS WHEREOF the undersigned, being duly authorized by their respective Governments, have signed this Agreement.
DONE at Singapore on this 6th day of April 2010, in duplicate in the English and Spanish languages, both texts being equally authentic.
For the Government of the Republic of Costa Rica
Marco Vinicio Ruiz
Minister of Foreign Trade
For the Government of the Republic of Singapore
S Iswaran
Senior Minister of State for Trade and Industry and Education
Attachments
Annex I. Non-Conforming Measures. Schedule of Costa Rica
Explanatory Note
1. The Schedule of a Party of this Annex sets out, pursuant to Article 10.7 (Non-Conforming Measures) of Chapter 10 (Trade in Services) and Article 11.13 (Non-Conforming Measures) of Chapter 11 (Investment), the reservations taken by a Party with respect to measures that do not conform to some or all of the obligations imposed by:
(a) Article 10.3 (National Treatment) of Chapter 10 (Trade in Services) or Article 11.4 (National Treatment) of Chapter 11 (Investment);
(b) Article 10.4 (Most-Favoured-Nation Treatment) of Chapter 10 (Trade in Services) or Article 11.5 (Most-Favoured-Nation Treatment) of Chapter 11 (Investment);
(c) Article 10.5 (Market Access) of Chapter 10 (Trade in Services);
(d) Article 10.6 (Local Presence) of Chapter 10 (Trade in Services);
(e) Article 11.8 (Performance Requirements) of Chapter 11 (Investment); or
(f) Article 11.12 (Senior Management and Board of Directors) of Chapter 11 (Investment).
2. Each reservation in a Party’s Schedule sets out the following elements:
(a) Sector refers to the sector in which the reservation is made;
(b) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Article 10.7 (Non-Conforming Measures) of Chapter 10 (Trade in Services) and Article 11.13 (Non-Conforming Measures) of Chapter 11 (Investment), do not apply to listed measure(s);
(c) Measures identify the laws, regulations, or other measures for which the reservation is made. A measure cited in the Measures element:
i. means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement, and
ii. includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(d) Description sets out a general description of the Measures element.
3. In the interpretation of a reservation, all elements of the reservation shall be considered. The Measures element shall prevail over all other elements, unless any inconsistency between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that inconsistency.
4. In accordance with Article 10.7 (Non-Conforming Measures) of Chapter 10 (Trade in Services) and Article 11.13 (Non-Conforming Measures) of Chapter 11 (Investment), the Articles of this Agreement specified in the Obligations Concerned element of a reservation do not apply to the laws, regulations, or other measures identified in the Measures element of that reservation.
5. Where a Party maintains a measure that requires that a service supplier be a citizen, permanent resident, or resident of its territory as a condition to the supply of a service in its territory, a reservation for that measure taken with respect to Article 10.3 (National Treatment), 10.4 (Most-Favoured-Nation Treatment), or 10.6 (Local Presence) shall operate as a reservation with respect to Article 11.4 (National Treatment), 11.5 (Most-Favoured-Nation Treatment), or 11.8 (Performance Requirements) to the extent of that measure.
6. For greater certainty, Article 10.5 (Market Access) refers to non-discriminatory measures.
Sector: All
Obligations Concerned: Local Presence
Measures: Law No. 3284 – Código de Comercio – Article 226. Law No. 218 – Ley de Asociaciones – Article 16. Executive Decree No. 29496 – Reglamento a la Ley de Asociaciones – Article 34.
Description: Trade in Services:
The associations located abroad that would like to act in Costa Rica and the foreign juridical persons that have or want to open branches in the territory of Costa Rica, are obliged to constitute and maintain in the country a power of attorney for the branches’ business.
Sector: All
Obligations Concerned: National Treatment, Market Access, Local Presence
Measures: Law No. 6043 – Ley sobre la Zona Marítimo Terrestre – Chapters 2, 3 and 6.
Description: Trade in Services and Investment:
A concession is required to perform any type of development or activity in the maritime-terrestrial zone. (1) Such a concession shall not be granted to or held by: (a) foreign nationals that have not resided in the country for at least five years; (b) enterprises with bearer shares; (c) enterprises domiciled abroad; (d) enterprises incorporated in the country solely by foreign nationals; or (e) enterprises where more than fifty percent of the capital shares or stocks are owned by foreigners. Within the maritime-terrestrial zone, no concession may be granted within the first fifty meters counted from the high tide line nor in the area comprised between the high tide line and the low tide line.
Sector: All
Obligations Concerned: National Treatment, Market Access, Local Presence
Measures: Law No. 7762 – Ley General de Concesión de Obras Públicas con Servicios Públicos – Chapter 4.
Description: Trade in Services and Investment:
For concessions of public works contracts and the concessions of public works with public services contracts defined in accordance with Costa Rican legislation, in case of a tie in the selection parameters in conformity with the notice rules, the Costa Rican tenderer shall be awarded the contract over the foreigner. The adjudicatory stays obliged to constitute a national anonymous society with which the concession’s contract shall be done. Also, he shall be jointly responsible with this anonymous society. For greater certainty, this reservation shall not affect the rights and obligations of the Parties under Chapter 8 (Government Procurement).
Sector: Professional Services
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Market Access, Local Presence
Measures: Law No. 7221 – Ley Orgánica del Colegio de Ingenieros Agrónomos. Executive Decree No. 22688 – Reglamento General de la Ley Orgánica del Colegio de Ingenieros Agrónomos de Costa Rica. Executive Decree No. 29410 – Reglamento del Registro de Peritos-Tasadores del Colegio de Ingenieros Agr nomos. Law No. 5230 – Ley Orgánica del Colegio de Geólogos de Costa Rica. Executive Decree No. 6419 – Reglamento del Colegio de Geólogos de Costa Rica. Law No. 5142 – Ley Orgánica del Colegio de Farmacéuticos de Costa Rica. Executive Decree No. 3503 – Reglamento General Orgánico o Reglamento Interno del Colegio de Farmacéuticos de Costa Rica. Law No. 5784 – Ley Orgánica del Colegio de Cirujanos Dentistas de Costa Rica. Law No. 4925 – Reforma Integral a la Ley Orgánica del Colegio Federado de Ingenieros y Arquitectos. Executive Decree No. 3414 – Reglamento Interior General del Colegio Federado de Ingenieros y Arquitectos de Costa Rica. Reglamento Especial de Incorporación al Colegio Federado de Ingenieros y Arquitectos de Costa Rica. Reglamento Especial para Determinar Inopia de Profesionales para los Efectos de Miembro Temporal o Incorporación de Extranjeros al Colegio Federado de Ingenieros y de Arquitectos de Costa Rica. Law No. 1038 – Ley de Creación del Colegio de Contadores Públicos. Executive Decree No. 13606 – Reglamento del Colegio de Contadores Públicos de Costa Rica. Law No. 3455 – Ley Orgánica del Colegio de Médicos Veterinarios. Executive Decree No. 19184 – Reglamento a la Ley Orgánica del Colegio de Médicos Veterinarios. Law No. 2343 – Ley Orgánica del Colegio de Enfermeras de Costa Rica. Executive Decree No. 34052 – Reglamento de la Ley Orgánica del Colegio de Enfermeras de Costa Rica. Law No. 7764 – Código Notarial. Law No. 1269 – Ley Orgánica del Colegio de Contadores Privados. Reglamento para el trámite y requisitos de incorporación al Colegio de Contadores Privados de Costa Rica. Law No. 8412 – Ley Orgánica del Colegio de Ingenieros Químicos y Profesionales Afines y Ley Orgánica del Colegio de Químicos de Costa Rica. Law No. 3019 – Ley Orgánica del Colegio de Médicos y Cirujanos. Executive Decree No. 23110 – Reglamento a la Ley Orgánica del Colegio de Médicos y Cirujanos. Executive Decree No. 2613 – Reglamento General para Autorizar el Ejercicio a Profesionales de Ramas Dependientes de las Ciencias Médicas y a Técnicos en Materias Médico Quirúrgicas. Law No. 3838 – Ley Orgánica del Colegio de Optometristas de Costa Rica. Law No. 4420 – Ley Orgánica del Colegio de Periodistas de Costa Rica. Executive Decree No. 32599 – Reglamento del Colegio de Periodistas. Law No. 7106 – Ley Orgánica del Colegio de Profesionales en Ciencias Políticas y de Relaciones Internacionales. Executive Decree No. 19026 – Reglamento a la Ley Orgánica del Colegio de Profesionales en Ciencias Políticas y de Relaciones Internacionales. Law No. 4288 – Ley Orgánica del Colegio de Biólogos. Executive Decree No. 39 – Reglamento de la Ley Orgánica del Colegio de Biólogos de Costa Rica. Law No. 5402 – Ley Orgánica al Colegio de Bibliotecarios de Costa Rica. Reglamento a la Ley Orgánica al Colegio de Bibliotecarios de Costa Rica. Law No. 7537 – Ley Orgánica del Colegio de Profesionales en Informática y Computación. Law No. 8142 – Ley de Traducciones e Interpretaciones Oficiales. Executive Decree No. 30167 – Reglamento a la Ley de Traducciones e Interpretaciones Oficiales. Law No. 7105 – Ley Orgánica del Colegio de Licenciados en Ciencias Económicas. Executive Decree No. 20014 – Reglamento General de Profesionales en Ciencias Económicas de Costa Rica. Law No. 7503 – Ley Orgánica del Colegio de Físicos. Executive Decree No. 28035 – Reglamento a la Ley Orgánica del Colegio de Físicos. Law No. 6144 – Ley Orgánica del Colegio Profesional de Psicólogos de Costa Rica. Reglamento General del Colegio Profesional de Psicólogos de Costa Rica. Law No. 7912 – Ley Orgánica del Colegio de Profesionales en Quiropráctica. Executive Decree No. 28595 – Reglamento de la Ley Orgánica del Colegio de Profesionales en Quiropráctica. Law No. 7559 – Ley de Servicio Social Obligatorio para los Profesionales en las Ciencias de la Salud. Executive Decree No. 25068 – Reglamento de Servicio Social Obligatorio para los Profesionales en Ciencias de la Salud.
Description: Trade in Services and Investment:
Only the professional services suppliers duly incorporated to the respective professional association in Costa Rica are authorized to practice the profession in the Costa Rican territory, including advisory and consulting. The foreign professional services suppliers shall incorporate to the respective professional association in Costa Rica and fulfill, among others, with requirements of nationality, residence, incorporation exams, accreditations, experience, social service or evaluations. Priority shall be given to Costa Rican professional services suppliers for the social service requirement. To be incorporated in some of the professional associations in Costa Rica, the foreign professional services suppliers shall demonstrate that in their country of origin, where they are authorized to practice their profession, the Costa Rican professional services suppliers can practice the profession under like circumstances. In some cases, the hiring of foreign professional services suppliers on behalf of State or private institutions can only happen when there are no Costa Rican professional services suppliers willing to supply the service in the required conditions, or under the declaration of inopia. This reservation applies to Agronomists, Geologists, Pharmacists, Dental Surgeons, Engineers and Architects, Public Accountants, Veterinaries, Nurses, Lawyers (i.e. Notaries), Private Accountants, Chemists, Chemical Engineers and Related Professionals, Physicians and Surgeons, Medical and Surgical Technicians and Medical Sciences Branches, Optometrists, Journalists, Political Scientists and International Relations Specialists, Biologists, Librarians, Computer Science and Information Technology Professionals, Official Translators and Interpreters, Economists, Physicists, Psychologists, Chiropractors, Professionals in Health Sciences, Microbiologists and Nutritionists.
Sector: Land Transportation Services – Road Freight Transportation
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Market Access, Senior Management and Board of Directors
Measures: Executive Decree No. 31363 – Reglamento de Circulación por Carretera con base en el Peso y las Dimensiones de los Vehículos de Carga – Articles 69 and 71. Executive Decree No. 15624 – Reglamento del Transporte Automotor de Carga Local – Articles 5, 7, 8, 9, 10, and 12.
Description: Trade in Services and Investment:
No motor vehicle, trailer, or tractor-trailer with foreign license plates may transport goods within the territory of Costa Rica. This prohibition does not apply to vehicles, trailers, or tractor-trailers registered in one of the Central American countries. Only Costa Rican nationals or enterprises shall supply freight transportation services between two points within the territory of Costa Rica. Such an enterprise must meet the following requirements: (a) at least fifty one percent of its capital must be owned by Costa Rican nationals; and (b) Costa Rican nationals must have effective control and management of the enterprise. Foreign enterprises involved in international multi-modal freight transportation must contract enterprises organized under the laws of Costa Rica to transport containers and tractor-trailers within Costa Rica.
Sector: Tourist Guides
Obligations Concerned: National Treatment
Measures: Executive Decree No. 31030 – Reglamento de los Guías de Turismo – Article 11.
Description: Trade in Services and Investment:
Only Costa Rican nationals or residents may apply for tourist guides licenses.
Sector: Travel Agencies and Tourism
Obligations Concerned: Market Access
Measures: Law No. 5339 – Ley Reguladora de las Agencias de Viajes – Article 8. Executive Decree No. 24863 – Reglamento de la Ley de Incentivos para el Desarrollo Turístico – Article 16.
Description: Trade in Services:
Costa Rica reserves the right to limit the number of travel agencies authorized to operate in Costa Rica based on demand for that service.
Sector: Public Function Customs Auxiliaries
Obligations Concerned: National Treatment, Local Presence
Measures: Law No. 7557 – Ley General de Aduanas – Title III. Executive Decree No. 25270 – Reglamento a la Ley General de Aduanas – Title IV.
Description: Trade in Services:
Only natural persons or enterprises that have a legal representative and incorporated in Costa Rica may act as public function customs auxiliaries. Only Costa Rican nationals may act as customs brokers.
Sector: Scientific and Research Services
Obligations Concerned: National Treatment, Local Presence
Measures: Law No. 7788 – Ley de Biodiversidad – Articles 7 and 63. Law No. 7317 – Ley de Conservación de la Vida Silvestre – Articles 2, 28, 29, 31, 38, 39, 61, 64 and 66. Executive Decree No. 32633 – Reglamento a la Ley de Conservación de la Vida Silvestre – Chapter V.