Protocol to the CACM Agreement on Investment and Trade Services (2007)
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Obligations Concerned: Market Access (Art. 4. 06)

Measures: Decree No 131, Constitution of the Republic, Title V, Chapter X, Article 292

Decree No 80-92, Law of Investments, Chapter VI, Article 16

Description: Cross Border Trade of Services

The distribution at wholesale and retail level of the following articles is reserved exclusively to the Armed Forces of Honduras: - ammunition;- war airplanes;- military rifles;- all kinds of pistols and pevolvers, 41 caliber or larger;- regulation pistols of the Honduran Army;- silencers for all kinds of firearms;- firearms;- accessories and ammunition;- cartridges for firearms;- apparatus and other indispensable accessories for the loading of cartridges;- powder, explosives, percussion caps and fuses;- protective masks against asphyxiating gases;- wind rifles. For greater certainty the use of explosives for commercial purposes may be authorized par the competent authority of Honduras.

Sector: Research and Security Services

Obligations concerned: National Treatment (Article 3.04) Senior corporate management and boards of directors (Article 3.08).

Measures: Decree No. 156-98, Ley Organica de la Policía Nacional, Article 91

Description: Investment

To establish themselves in Honduras, foreign private security companies must associate with Honduran companies engaged in the same activity and designate a Honduran national by birth as a senior executive.

Sector: Fishing Industry

Obligations Concerned: National Treatment (Article 3.04)

Measures: Decree No 154, Fisheries Law, Chapters IV, Articles 20, 26 and 29

Description: Investment

Only Honduran nationals resident in Honduras and companies incorporated under Honduran law, which are at least 51% owned by Honduran nationals, may engage in commercial fishing in waters, seas, rivers and lakes located in Honduras. For greater certainty, only vessels flying the Honduran flag may engage in commercial fishing activities in Honduran territorial waters, and for greater certainty, only Honduran nationals by birth may be captains of commercial fishing vessels.

Sector: Professional Services

Obligations Concerned: Most-Favored-Nation Treatment (Article 4.03) National Treatment (Article 4.04) Local Presence (Article 4.05)

Measures: Decree No 131, Constitution of the Republic of Honduras, Chapter VIII, Article No 177

Regulations for the Recognition of University Studies and Incorporation of Professionals, Articles 2, 11 and 18

Description: Cross-Border Trade in Services

Notwithstanding existing measures related to the requirements for! Honduras agrees that if a Central American country jurisdiction recognizes a professional degree granted by Honduran educational institutions, then Honduras will recognize the equivalent professional degree granted by an educational institution of the Central American countries. Furthermore, Honduras agrees that if a jurisdiction in the Central American countries permits Honduran nationals to apply for and receive a license or certificate for the provision of a professional service, then Honduras will permit nationals of the Central American countries to apply for and receive an equivalent license or certificate. For greater certainty, the preceding paragraphs do not automatically grant recognition of professional degrees or the right to practice, nor do they eliminate the nationality requirement for certain professionals reserved exclusively for Honduran nationals, as indicated in Annexes I or II. In addition, the corresponding professional association in Honduras shall recognize a license granted by a jurisdiction in the Central American countries, and shall permit the beneficiary of such license to register with that association and practice that profession in Honduras on a temporary basis on the basis of the license granted by a jurisdiction in the Central American countries, in the following cases: a) no academic institution in Honduras offers a course of study that permits professional practice in Honduras; b) the holder of the license is a recognized expert in the professional field; c) permitting the professional to practice in Honduras, will advance through training, demonstration, or other opportunity the development of that profession in Honduras.

Sector: Air Transport

Obligations affected: National Treatment (Article 3.04) Senior corporate management and boards of directors (Article 3.08).

Measures: Decree No 146, Ley de Aeronautica Civil, Chapter X, Second, Third and Fourth Sections, Article 80.

Description: Investment

Only Honduran nationals and companies incorporated under Honduran law may provide domestic and international commercial air transport services by means of an aircraft under the Honduran flag. Such companies must be controlled and owned at least 51 percent by Honduran nationals.

Sector: Air Transport

Obligations Concerned: Most-Favored-Nation Treatment (4.03) National Treatment (Article 4.04) Local Presence (4. 05)

Measures: Decree No. 146, Civil Aeronautics Law, Chapter X, Second, Third and Fourth Sections, Articles 37, 125 and 126

Description: Cross-Border Trade in Services

Private specialized air transportation services for remuneration may only be provided by Honduran nationals or companies incorporated under Honduran law and must be authorized by the Secretariat of Public Works, Transportation and Housing. In the absence of Honduran personnel to perform such activities, foreign pilots or other technical personnel may be allowed to perform such activities, giving preference to qualified personnel from any Central American country.

Sector: Maritime Transportation - Coastwise Navigation

Obligations affected: National Treatment (Article 3.04 and 4.04) Most Favored Nation Treatment (Article 3.05 and 4.03) Local Presence (Article 4.05)

Measures: Decree No. 167-94, Ley Organica de la Marina Mercante Nacional, dated January 2, 1995, Title II, Ill, Chapter VII, Article 40

Agreement No. 000764, Reglamento de Transporte Marítimo dated December 13, 1997, Article 6

Description: Investment and Cross Border Trade of Services

Cabotage navigation for mercantile purposes is reserved to Honduran merchant vessels. Exceptionally, when there are no Honduran merchant vessels or they are not available and for the time that such circumstance lasts, the Directorate General of the Merchant Marine may authorize foreign merchant vessels to provide cabotage services in Honduras. In such circumstances preference will be given to vessels flying the flag of Central American countries. Honduran merchant vessels must be constituted in accordance with the laws of Honduras, and at least 51 percent of its subscribed and paid-up capital stock must be owned by Honduran nationals and the company must be domiciled in Honduras.

Sector: Land Transportation

Obligations concerned: National Treatment (Articles 3.04 and 4.04) Most Favored Nation Treatment (Article 4.03) Local Presence (Article 4.05) Market Access (Article 4.06)

Measures: Decree No 319- 1976, Land Transportation Law, Articles 3, 5,17, 18, 27 and 28 Agreement No 200, Regulations of the Land Transportation Law, Articles 1, 7,32, 33 and 34.

Description: Investment and Cross-Border Trade in Services

Domestic public land passenger transportation services and cargo transportation services may be provided only by Honduran nationals and companies incorporated under Honduran law in which at least 51 percent of the capital is held by Honduran nationals It is necessary to obtain a certificate of operation from the General Directorate of Transportation of the Secretariat of State in the Offices of Public Works, Transportation and Housing (SOPTRAVI), which is subject to an economic necessity test. International public land passenger transportation services and cargo transportation services may be provided by foreign nationals and by companies incorporated under the laws of a foreign country on the basis of reciprocity, but authorization for particular routes shall be granted in preference to Honduran nationals and to companies incorporated under Honduran law.

Sector: Transportation-rail

Obligations concerned: National treatment (Article 3.04) Senior corporate management and boards of directors (Article 3.08).

Measures: Decree No. 48, Ley Constitutiva del Ferrocarril Nacional de Honduras, Chapters I and VI11, Article 32 and Article 12 (amended by Decree No. 54)

Description: Investment

The Ferrocarril Nacional de Honduras may sell its subsidiaries to private entrepreneurs of Honduran nationality and to companies incorporated under Honduran law.To be a senior manager of the Ferrocarril Nacional de Honduras, it is required to be a Honduran national by birth.

Sector: Other Commercial Services - Almacenes Generales de Dep6sito (General Warehousing)

Obligations Concerned: Market Access (Article 4.06)

Measures: Agreement No. 1055, Regulation of General Warehouses, Article 3

Description: Cross-Border Trade in Services

Only companies incorporated under the laws of Honduras with fixed capital and with the sole purpose of supplying warehousing services are authorized to supply such services.

Sector: Business Management Consulting Services

Obligations concerned: Most-Favored-Nation Treatment (4.03) National Treatment (Article 4.04) Market Access (Article 4. 06)

Measures: Decree No 900, Ley Organica del Colegio de Administradores de Empresas de Honduras, Articles 61- E and 61-F

Reglamento de Ley Organica del Colegio de Administradores de Empresas de Honduras, Articles 96, 111, 113 and 114

Description: Cross Border Trade of Services

Foreign nationals may enter into contracts to provide consulting services in business administration after they have obtained the authorization of the contract from the Colegio de Administradores de Empresas de Honduras. Companies incorporated under foreign law may enter into contracts to provide business management consulting services after they have obtained contract authorization from the Colegio de Administradores de Empresas de Honduras, if such services are not otherwise available in Honduras or due to contractual needs. To provide such services, such companies must form a partnership with Honduran companies that are duly registered with the Colegio de Administradores de Empresas de Honduras. Foreign nationals and companies incorporated under foreign law must pay registration fees higher than those imposed on Honduran nationals and companies incorporated under Honduran law.

Sector: Economic Consulting Services

Obligations concerned: Local Presence (Artfculo 4.05)

Measures: Decree No 1002, Ley Organica de/ Colegio Hondureño de Economistas, Artículo 58.

Description: Cross-Border Trade in Services

To provide economic consulting services in the territory of Honduras, foreign economic consulting firms must be represented by a member of/ Colegio Hondurefio de Economistas.

Sector: Agricultural Engineering and Agronomy

Obligations conerned: Most-Favored Nation Treatment (Article 4.03) National Treatment ( Article 4.04)

Measures: Decree No 148-95, Organic Law of the College of Professionals in Agricultural Sciences of Honduras, Article 5

Regulations of the Organic Law of the College of Professionals in Agricultural Sciences of Honduras, Article 9 and Schedule of Payments to COLPROCAH.

Description: Cross-Border Trade in Services

Foreign agronomists and agricultural engineers will be subject to higher registration fees in the professional association than those imposed on Honduran agronomists and agricultural engineers.

Sector: Forestry engineers

Obligations concerned: National treatment (Article 4.04) Local presence (Article 4.05)

Measures: Ley Organica del Colegio de lngenieros forestales de Honduras, Article 66.

Description: Cross Border Trade in Services

Forest engineering consulting firms incorporated under foreign law must hire Honduran nationals who are members of the Colegio de Ingenieros Forestales de Honduras in a proportion significant to the size of the project.

Sector: Veterinarians

Obligations concerned: Most-Favored Nation Treatment (4.03) National Treatment (Article 4.04) Local Presence (Article 4.05)

Measures: Ley Organica del Colegio de Veterinarios de Honduras, Article 12

Reglamento de la Ley Organica del Colegio del Colegio de Medicos Veterinarios de Honduras, Article 5

Description: Cross-Border Trade in Services

Foreign companies wishing to provide veterinary services in Honduras must be incorporated under Honduran law. Foreign veterinarians may be subject to higher professional registration fees than those payable by Central American veterinarians.

Sector: Microbiologists and Cloners

Obligations Concerned: National Treatment (Article 4.04)

Measures: : Regulations for Registration of the College of Microbiologists and Cloners. Articles 5, 6 and 8

Description: Cross Border Trade in Services

Foreign microbiologists and clinicians must pay a higher fee in the registry than Honduran microbiologists and clinicians.

Sector: Notaries

Obligations Concerned: National Treatment (Article 4.04)

Measures: Decree No 277- 2002, Law of Notaries of August 16, 2002, Article 4.

Description: Cross Border Trade in Services

Notaries must be Honduran nationals.

Sector: Electric energy services

Obligations Concerned: Market access (Article 4.06)

Measures: Decree No 158- 94, Ley Marco del Sub-sector electrico, Article 23

Description: Cross-Border Trade in Services

In order to establish itself in Honduras and to be able to provide electric energy distribution services, a company must be incorporated as a commercial company with nominal shares.

Sector: Telecommunications

Obligations Concerned: Market access (Article 4.06)

Measures: Decree No 80-2003, Article 1 (3.5) Executive Decree No PCM-018-2003, dated October 2, 2003, Article 1, numeral IV(a), Decree No 109-2003 dated October 24, 2003, Article 1, numeral IV(a)

Description: Cross-border trade in services

The National Telecommunications Commission (CONATEL) may not authorize additional operators for mobile telephony until December 2005. CONATEL will authorize at least one additional operator after that date.

Sector: Public Accountants

Obligations concerned: Local Presence (Article 4.05)

Measures: Decree No 19-93, Ley Organica del Colegio de Profesionales Universitarios en Contaduría Publica, Article 23

Description: Cross-Border Trade in Services

Any person wishing to establish in Honduras and provide public accounting services must be incorporated under the laws of Honduras.

Sector: Architects

Obligations affected: Local presence (Article 4.05).

Measures: Internal Regulations of the College of Architects of Honduras, Article 7(c)and(d).

Description: Cross-Border Trade in Services

Firms organized under foreign law must designate a member of the Colegio de Arquitectos de Honduras (CAH) as their representative prior to registering with the CAH to provide architectural services in Honduras. For greater certainty, firms organized under foreign law may register only for specific projects.

Annex I. Schedule of Nicaragua

Sector: Musicians and Artists

Obligations Concerned: Most-favored-nation treatment (4.03) National treatment (Article 4.04)

Measures: Law for the Promotion of National Artistic Expressions and the Protection of Nicaraguan Artists.

Law No. 215, published in La Gaceta No. 134 of July 17, 1996. Articles 14, 23, 24, 24, 25 and 31

Description: Cross Border Trade of Services

Any foreign artist or musical group, may only present shows in Nicaragua by means of previous contract.Foreign artists who perform shows or revues of commercial character, shall include in their program, the participation of a Nicaraguan artist or group of similar performance. If the artist or artistic groups do not wish to include the participation of the national artist in their program, they must pay 1% of the net income of the show to the Nicaraguan Institute of Culture, unless the country of origin of the foreign artists or groups does not impose a similar tax to Nicaraguan artists or artistic groups. Foreigners who are awarded the design and construction of public, pictorial or sculptural monuments to be erected in Nicaragua, must do so in association with Nicaraguan artists.

Sector: Tourism - Hotels, Restaurants, Tourist Guides, Rent-a-Car and other activities related to tourism.

Obligations Concerned: National treatment (Article 4.04) Local presence (Article 4.05)

Measures: Law of incentives to the tourist industry of the Republic of Nicaragua, Law No. 306, published in La Gaceta No. 117, of June 21, 1999, Articles 16.1 and 16.2

Regulation of Tourism Companies and Activities of Nicaragua, published in La Gaceta No. 99 of May 28, 2001, Articles 16 and 17

Reglamento de las Operadores de Viajes de Nicaragua, published in La Gaceta No. 100 of May 29, 2001. Article 8

Regulation that regulates the activity of the Rent a Car companies, published in La Gaceta No. 108 of June 8, 2001. Article 9

Regulation of Tourist Guides, published in La Gaceta No. 40 of February 26, 2001. Article 9

Regulation of Travel Agencies of Nicaragua, published in La Gaceta No. 96 of May 21, 2001. Article 5

Description: Cross Border Trade of Services

To provide tourist services in Nicaragua, a company must be organized under the laws of Nicaragua; and a foreign national must reside in Nicaragua or appoint a legal representative in Nicaragua. This paragraph does not apply to the provision of tourist services during a cruise. Tourist guides must be of Nicaraguan nationality.

Sector: Construction-related services

  • Article   1 1
  • Article   2 1
  • Article   3 1
  • Annex A 1
  • Annex B 1
  • Chapter   1 Initial Provisions 1
  • 1.01 Objectives 1
  • 1.02 Observance of the Treaty 1
  • 1.03 Relationship with other Treaties 1
  • Chapter   2 DEFINITIONS OF GENERAL APPLICATION 1
  • 2.01 Definitions of General Application 1
  • Chapter   3 Investment 1
  • Section   A Investment 1
  • 3.01 Definitions 1
  • 3.02 Scope 2
  • 3.03 Minimum Level of Treatment 2
  • 3.04 National Treatment 2
  • 3.05 Most-favored-nation Treatment 2
  • 3.06 Treatment In Case of Losses 2
  • 3.07 Performance Requirements 2
  • 3.08 Senior Corporate Management and Boards of Directors 2
  • 3.09 Reservations and Exceptions 2
  • 3.10 Transfers 2
  • 3.11 Expropriation and Compensation 2
  • 3.12 Special Formalities and Information Requirements 2
  • 3.13 Denial of Benefits 2
  • 3.14 Measures Relating to the Environment 2
  • 3.15 Promotion of Investments and Exchange of Information 2
  • Section   B Investor-State Dispute Settlement 2
  • 3.16 Consultation and Negotiation 2
  • 3.17 Submission of a Claim to Arbitration 2
  • 3.18 Consent of Each Party to Arbitration 2
  • 3.19 Conditions and Limitations on the Consent of the Parties 2
  • 3.20 Selection of Arbitrators 3
  • 3.21 Conduct of Arbitration 3
  • 3.22 Transparency of Arbitration Proceedings 3
  • 3.23 Applicable Law 3
  • 3.24 Interpretation of Annexes 3
  • 3.25 Expert Reports 3
  • 3.26 Accumulation of Procedures 3
  • 3.27 Reports 3
  • 3.28 Delivery of Documents 3
  • Annex 3.11  3
  • Annex 3.28  3
  • Chapter   4 Cross-border Trade In Services 3
  • 4.01 Definitions 3
  • 4.02 Scope of Application 3
  • 4.03 Most-favoured Nation Treatment 4
  • 4.04 National Treatment 4
  • 4.05 Local Presence 4
  • 4.06 Market Access 4
  • 4.07 Reservations and Exceptions 4
  • 4.08 Transparency In the Development and Application of Regulations 4
  • 4.09 Future Liberalization 4
  • 4.10 Committee on Investment and Cross-Border Trade In Services 4
  • 4.11 National Regulations 4
  • 4.12 Mutual Recognition 4
  • 4.13 Transfer and Payments 4
  • 4.14 Denial of Benefits 4
  • 4.15 Professional Services 4
  • 4.16 Ground Transportation Services 4
  • 4.17 Technical Cooperation 4
  • Annex 4.10  Committee on Investment and Cross-Border Trade in Services 4
  • Annex 4.15  Professional Services 4
  • Chapter   5 Telecommunications  (7) 4
  • 5.01 Definitions 4
  • 5.02 Scope of Application 4
  • 5.03 Access to and Use of Public Telecommunications Services 5
  • 5.04 Obligations Related to Providers of Public Telecommunications Services  (8) 5
  • 5.05 Additional Obligations Concerning Major Suppliers of Public Telecommunication Services  (10) 5
  • 5.06 Underwater Cable Systems 5
  • 5.07 Conditions for the Provision of Information Services 5
  • 5.08 Independent Regulatory Bodies and Government-owned Telecommunications Providers  (15) 5
  • 5.09 Universal Service 5
  • 5.10 Licenses and other Authorizations 5
  • 5.11 Allocation and Use of Scarce Resources 5
  • 5.12 Compliance 5
  • 5.13 Settlement of Internal Disputes on Telecommunications 5
  • 5.14 Transparency 5
  • 5.15 Flexibility In the Choice of Technologies 5
  • 5.16 Abstention 5
  • 5.17 Relationship with other Chapters 5
  • Chapter   6 Financial Services 5
  • 6.01 Definitions 5
  • 6.02 Scope of Application and Extent of Obligations 6
  • 6.03 National Treatment 6
  • 6.04 Most-favored-nation Treatment 6
  • 6.05 Market Access for Financial Institutions 6
  • 6.06 Cross-border Trade 6
  • 6.07 Self-regulatory Bodies 6
  • 6.08 Recognition and Harmonization 6
  • 6.09 Exceptions 6
  • 6.10 Transparency 6
  • 6.11 Payment and Compensation Systems 6
  • 6.12 Domestic Regulation 6
  • 6.13 Expedited Availability of Insurance Services 6
  • 6.14 Senior Management and Boards of Directors 6
  • 6.15 General Inquiries 6
  • 6.16 New Financial Services and Data Processing  (16) 6
  • 6.17 Treatment of Certain Types of Information 6
  • 6.18 Financial Services Committee 6
  • 6.19 Reservations and Exceptions 6
  • 6.20 Future Liberalization 6
  • 6.21 Disputes between an Investor and a Party 7
  • 6.22 Disputes between the Parties 7
  • Annex 6.18  Financial Services Committee 7
  • Annex 6.19.2  Specific Commitments 7
  • Section   A Costa Rica 7
  • Section   B El Salvador 7
  • Section   C Guatemala 7
  • Section   D Honduras 7
  • Section   E Nicaragua 7
  • Annex 6.19.3  Additional Information Relating to Financial Services Measures 7
  • Section   A Costa Rica 7
  • Section   B El Salvador 7
  • Section   C Honduras 7
  • Section   D Nicaragua 7
  • Chapter   7 Temporary Entry of Business Persons 7
  • 7.01 Definitions 7
  • 7.02 General Principles 7
  • 7.03 General Obligations 7
  • 7.04 Temporary Entry Authorization 7
  • 7.05 Provision of Information 7
  • 7.06 Dispute Settlement 7
  • 7.07 Relationship with other Chapters 8
  • Annex 7.04  Temporary Entry of Business Persons 8
  • Section   A Business Visitors 8
  • Section   B Merchants and Investors 8
  • Section   C Transfers of Personnel Within a Company 8
  • Annex 7.04(1)  Specific Provisions for the Temporary Entry of Business People 8
  • Appendix 7.04(A)(1)  Business visitors 8
  • Appendix 7.04(A)(2)  Existing Migration Measures 8
  • Chapter   8 Exceptions 8
  • 8.01 Definitions 8
  • 8.02 General Exceptions 8
  • 8.03 National Security 8
  • 8.04 Balance of Payments 8
  • 8.05 Exceptions to the Disclosure of Information 8
  • 8.06 Taxation 8
  • Annex 8.06  Competent Authorities 8
  • Chapter   9 Administration of the Treaty 8
  • 9.01 Administration 8
  • 9.02 Functions of the Council 8
  • 9.03 Committees 9
  • 9.04 Functions of the Committees 9
  • Annex 9.03.2  9
  • Chapter   10 Transparency 9
  • 10.01 Definitions 9
  • 10.02 Information Center 9
  • 10.03 Publication 9
  • 10.04 Provision of Information 9
  • 10.05 Guarantees of Hearing, Legality and Due Process 9
  • 10.06 Administrative Procedures for the Adoption of Measures of General Application 9
  • 10.07 Review and Challenge 9
  • Chapter   11 Final Provisions 9
  • 11.01 Amendments 9
  • 11.02 Amendments to the WTO Agreement 9
  • 11.03 Reservations 9
  • 11.04 Duration 9
  • 11.05 Denunciation 9
  • 11.06 Deposit 9
  • 11.07 Annexes, Appendices and Footnotes 9
  • 11.08 Replacement 9
  • Annex I  Non-conforming Measures 9
  • Explanatory Note 9
  • Annex I  Schedule of Costa Rica 9
  • Annex I  Schedule of El Salvador 11
  • Annex I  Schedule of Guatemala 12
  • Annex I  Schedule of Honduras 13
  • Annex I  Schedule of Nicaragua 14
  • Annex II  Future Measures 16
  • Explanatory Note 16
  • Annex II  Schedule of Costa Rica 16
  • Annex II  Schedule of El Salvador 16
  • Annex II  Schedule of Guatemala 16
  • Annex II  Schedule of Honduras 16
  • Annex II  Schedule of Nicaragua 16