a) the production, distribution, marketing, sale and provision of a service;
b) the purchase or use of, or payment for, a service;
c) access to, and use of:
(i) distribution and transportation systems related to the provision of a service; and
(ii) telecommunications networks and services;
d) the presence in its territory of a cross-border service provider of another Party; and
e) the granting of a bond or other form of financial guarantee, as a condition for the provision of a service.
2. This Chapter does not apply to:
a) air services, including national and international air transport, with and without fixed itinerary, and auxiliary activities in support of air services, except:
(i) aircraft repair and maintenance services during the period of withdrawal of a service aircraft;
(ii) specialized air services; and
(iii) computerized reservation systems;
b) financial services;
c) subsidies or grants awarded by a Party or a State enterprise, including government-supported loans, guarantees and insurance;
d) services provided in the exercise of governmental powers such as, and not limited to, enforcement, social rehabilitation services, security or income insurance, social security or welfare, social welfare, Public education, public training, health and care for children; neither
e) public procurement.
3. This Chapter does not impose any obligation on a Party in respect of a national of another Party who intends to enter its labor market or who has permanent employment in its territory, or to confer any right to that national, with respect to such access or employment.
4. For the purposes of this Chapter, "measures that a Party adopts or maintains" means measures adopted or maintained by:
a) central and local governments; and
b) non-governmental institutions in the exercise of powers delegated to them in accordance with national legislation, by central and local governments.
4.03. Most-favoured Nation Treatment
1. Each Party shall accord to providers of services of another Party treatment no less favorable than that it grants in like circumstances to service providers of any other Party or non-Party.
2. Nothing in this Chapter shall be construed to prevent a Party from conferring advantages on adjacent countries in order to facilitate exchanges, limited to contiguous border areas, of services that are produced or consumed locally.
4.04. National Treatment
Each Party shall accord to service providers of another Party treatment no less favorable than that it grants, in like circumstances, to its own service providers.
4.05. Local Presence
Neither Party shall require a service provider of another Party to establish or maintain a representative office or other type of business or to reside in its territory as a condition for the cross-border provision of a service.
4.06. Market Access
No Party shall adopt or maintain measures which:
a) impose limitations on:
(i) the number of service providers, whether in the form of numerical quotas, monopolies or exclusive service providers or by requiring an economic needs test,
(ii) the total value of the service assets or transactions in the form of numerical quotas or the requirement of an economic needs test,
(iii) the total number of service operations or the total amount of service production, expressed in designated numerical units, in the form of quotas or by requiring an economic needs test; (6)
(iv) the total number of natural persons that may be employed in a particular service sector or which a service provider may employ and which are necessary for the provision of a specific service and are directly relating to it, in the form of numerical quotas or by requiring an economic needs test; or
b) restrict or prescribe specific types of legal person or joint venture by means of which a service provider may provide a service.
4.07. Reservations and Exceptions
1. Articles 4.03, 4.04, 4.05 and 4.06 do not apply to:
a) any existing non-conforming measure maintained by a Party in:
(i) central level government, as established by that Party in its Schedule to Annex I (Non-Conforming Measures), or
(ii) a local level government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) provided that such amendment does not diminish the conformity of the measure, as it was in force immediately before the amendment, with Articles 4.03, 4.04, 4.05 and 4.06.
2. Articles 4.03, 4.04, 4.05, 4.06 do not apply to any measure that a Party adopts or maintains in relation to sectors, subsectors or activities, as indicated in its Schedule to Annex II (Measures to the Future).
4.08. Transparency In the Development and Application of Regulations
In addition to Chapter Ten (Transparency):
a) Each Party shall establish or maintain adequate mechanisms to respond to consultations of interested persons regarding its regulations relating to the subject matter of this Chapter;
b) when adopting definitive regulations concerning the subject matter of this Chapter, each Party shall respond in writing, as far as possible, even on request, to substantive comments received from interested persons with respect to the proposed regulations; and
c) to the extent possible, each Party shall give a reasonable period between the publication of definitive regulations and the date on which they enter into force.
4.09. Future Liberalization
With a view to achieving a progressively higher level of liberalization and prior Council instruction, the Parties undertake to conduct future negotiations aimed at eliminating the remaining non-conforming measures listed under Article 4.07.1.
4.10. Committee on Investment and Cross-Border Trade In Services
1. The Committee on Investment and Cross-Border Trade in Services, the composition of which is set out in Annex 4.10.
2. Without prejudice to Article 9.04 (Functions of Committees), the Committee shall have, inter alia, the following functions:
a) facilitate the exchange of information between the Parties, as well as technical cooperation in trade in services and investment; and
b) to consider issues of interest to Parties related to trade in services and investment that are discussed in international forums.
4.11. National Regulations
1. When a Party requires authorization for the provision of a service, the competent authorities of a Party, within a reasonable time after the submission of an application that is considered complete in accordance with its laws and regulations, shall inform the applicant of the decision Concerning your request. At the request of that applicant, the competent authorities of the Party shall, without undue delay, provide information concerning the status of the request. This obligation shall not apply to the authorization requirements that fall within the scope of Article 4.07.2.
2. In order to ensure that measures relating to requirements and procedures in respect of qualifications, technical standards and licensing requirements do not constitute unnecessary obstacles to trade in services, each Party shall endeavor to ensure, as appropriate for each Sector that any of the measures it adopts or maintains:
a) are based on objective and transparent criteria, such as competence and ability to provide the service;
b) are not more burdensome than necessary to ensure the quality of the service; and
c) in the case of licensing procedures, do not in themselves constitute a restriction on the provision of the service.
3. If the results of negotiations related to Article VI: 4 of the GATS (or the outcome of any similar negotiation, developed in another multilateral forum in which the Parties participate) enter into force for each Party, this Article shall be modified, As the case may be, after consultations are held between the Parties to ensure that those results are effective under this Agreement. The Parties shall coordinate, as appropriate, in such negotiations.
4.12. Mutual Recognition
1. For the purposes of compliance, in whole or in part, with its rules or criteria for the authorization or certification of service providers or the granting of licenses and subject to the requirements of paragraph 4, a Party may recognize the education or experience gained, requirements met or licenses or certificates issued in a particular country, including another Party or a non-Party. Such recognition, which may be effected by harmonization or otherwise, may be based on an agreement or agreement with the country concerned or may be granted autonomously.
2. Where a Party recognizes, autonomously or through an agreement or agreement, the education or experience gained, requirements met or licenses or certificates issued in the territory of another Party or a non-Party, Article 4.03 shall be interpreted as requiring the Party to accord such recognition to education or experience gained, requirements met or licenses or certificates issued in the territory of any other Party.
3. A Party which is party to an agreement or arrangement of the kind referred to in paragraph 1, existing or future, shall provide adequate opportunities to another Party, if that other Party is interested, to negotiate its adherence to such agreement or agreement Or to negotiate with her a comparable one. Where a Party grants recognition autonomously, it shall provide appropriate opportunities to another Party to demonstrate that the education, experience, licenses or certificates obtained or requirements met in the territory of that other Party should be recognized.
4. No Party shall accord recognition in a manner that discriminates between countries in the application of its standards or criteria for the authorization or certification of service providers or the licensing of services or a disguised restriction on the trade of services.
4.13. Transfer and Payments
1. Each Party shall allow all transfers and payments related to the cross-border provision of services to be made freely and without delay to and from its territory.
2. Each Party shall permit these transfers and payments related to the cross-border provision of services to be made in a freely usable currency at the exchange rate prevailing in the market at the time of transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent the making of a transfer or payment through the equitable, non-discriminatory and good faith application of its laws relating to:
a) bankruptcy, insolvency or protection of the rights of creditors;
b) issuance, trading or operations of securities, futures, options or derivatives;
c) financial reporting or record keeping of transfers where necessary to collaborate with law enforcement or financial regulatory authorities;
d) criminal offenses; or
e) guarantee of compliance with orders or rulings in judicial or administrative proceedings.
4.14. Denial of Benefits
A Party may deny benefits under this Chapter to a service provider of another Party, upon notification and consultation, where the Party determines that the service is being provided by a service provider who does not conduct substantive business operations in the territory of Other Party and which, under the law of that Party, is owned or controlled by persons from a non-Party.
4.15. Professional Services
Annex 4.15 applies to measures adopted or maintained by a Party relating to the licensing or certification of professional service suppliers, as set out in that Annex.
4.16. Ground Transportation Services
On the instructions of the Council, the Parties may develop a work program for the purpose of improving land transport flows between their territories.
4.17. Technical Cooperation
The Parties shall cooperate with each other to establish a system to provide service providers with information on their markets with regard to:
a) the commercial and technical aspects of the provision of services;
b) the possibility of obtaining technology in services; and
c) all those aspects that the Council identifies in terms of services.
Annex 4.10. Committee on Investment and Cross-Border Trade in Services
For the purposes of Article 4.10, the Committee on Investment and Cross-Border Trade in Services, is composed as follows:
a) for the case of Costa Rica by representatives of the General Directorate of Foreign Trade of the Ministry of Foreign Trade;
b) in the case of El Salvador, by representatives of the Department of Administration of Commercial Treaties of the Ministry of Economy;
c) in the case of Guatemala by representatives of the Directorate of Foreign Trade Administration of the Ministry of Economy;
d) for the case of Honduras by representatives of the General Directorate of Economic Integration and Commercial Policy of the Secretariat of State in the Offices of Industry and Commerce;
e) in the case of Nicaragua by representatives of the General Directorate of Foreign Trade of the Ministry of Development, Industry and Commerce;
Or their successors.
Annex 4.15. Professional Services
Elaboration of Professional Standards
1. The Parties shall encourage relevant bodies in their respective territories to develop mutually acceptable standards and criteria for the issuance of licenses and certificates to professional service providers and to submit recommendations to the Council on their mutual recognition.
2. The standards and criteria referred to in paragraph 1 may be elaborated in relation to the following aspects:
A) education - accreditation of schools or academic programs;
(B) examinations - qualification examinations for obtaining licenses, including alternative methods of assessment, such as oral examinations and interviews;
(C) experience - duration and nature of the experience required to obtain a license;
(D) conduct and ethics - standards of professional conduct and the nature of disciplinary measures in the event of professional service providers contravening them;
(E) professional development and renewal of certification - continuing education and the corresponding requirements for retaining the professional certificate;
F) scope of action - scope or limits of authorized activities;
G) local knowledge - requirements on knowledge of aspects such as local laws, regulations, language, geography or climate; Y
H) consumer protection - alternative to residency requirements, such as a bond, professional liability insurance and customer reimbursement funds to ensure consumer protection.
3. Upon receipt of a recommendation referred to in paragraph 1, the Council shall review it within a reasonable period of time to decide whether it is consistent with the provisions of this Agreement. Based on the review by the Council, each Party shall encourage its respective competent authorities to implement this recommendation, where appropriate, within a mutually agreed time frame.
Temporary Licenses
4. Each Party shall, where the Parties so agree, encourage the relevant agencies of their respective territories to develop procedures for the temporary licensing of professional service providers of another Party.
Review
5. The Council shall review the implementation of this Annex at least once every three (3) years.
Chapter 5. Telecommunications (7)
5.01. Definitions
For the purposes of this Chapter, the following definitions shall apply:
Cost-based: means cost-based, and may include reasonable profit, and may involve different costing methodologies for different facilities or services;
Leased circuits: telecommunication facilities between two or more designated points that are set aside for dedicated use or availability for a particular customer or for other users chosen by that customer;
Physical co-location: physical access to and control over space in order to install, maintain or repair equipment, in facilities owned or controlled and used by a supplier providing public telecommunications services;
Network element: an installation or equipment used in the provision of a public telecommunications service, including features, functions, and capabilities that are provided through such facilities or equipment;
Enterprise: an "enterprise" as defined in Article 2.01 (Definitions of general application) and includes a branch of a company;
Essential installations: facilities of a network or public telecommunications service which:
Are exclusively or predominantly supplied by a single or a limited number of suppliers; and
It is not economically or technically feasible to replace them for the purpose of providing a service;
Interconnection: liaison with providers of public telecommunications services in order to enable users of one provider to communicate with users of other providers and to access services provided by another provider;
Non-discriminatory treatment: treatment no less favorable than that accorded, in similar circumstances, to any other user of a similar public telecommunications service;
Reference interconnection offer: an interconnection offer extended by a major supplier and registered with, or approved by, a telecommunications regulatory body that is sufficiently detailed to enable public telecommunications service providers wishing to accept their rates, terms and conditions, obtain the interconnection without having to engage in negotiations with the relevant supplier in question;
Regulatory agency for telecommunications: a national body responsible for telecommunications regulation;
Dialing parity: the ability of an end-user to use the same number of digits to access a similar public telecommunications service, regardless of the provider of the public telecommunications service chosen by the end user;
Number portability: the ability of end-users of public telecommunications services to maintain, on the same site, telephone numbers without impairing quality, reliability, or convenience when switching between similar providers of public telecommunications services;
Important supplier: a public telecommunications service provider that has the ability to materially affect (taking into consideration prices and offer) the terms of participation in the relevant market of public telecommunications services, as a result of:
Controlling essential facilities; or
Make use of its position in the market;
Mobile commercial services: public telecommunications services supplied through wireless mobile media;
Information service: providing an ability to generate, acquire, store, transform, process, retrieve, use or make available information through telecommunications, and includes electronic advertising, but does not include any use of any of these capabilities for The administration, control or operation of a telecommunications system or the administration of a telecommunications service;
Public telecommunications service means any telecommunications service that a Party requires, whether in an explicit or de facto manner, to be offered to the general public. These services may include, inter alia, telephony and data transmission typically related to information provided by the customer between two or more points without any end-to-end change in the form or content of the customer's information, but does not include information services;
Telecommunications: the transmission and reception of signals by any electromagnetic means, including photonic means;
User: an end user or a provider of public telecommunications services; and
End-user: an end consumer or subscriber to a public telecommunications service, including a service provider other than the public telecommunications service provider.
5.02. Scope of Application
1. This Chapter applies to:
Measures adopted or maintained by a Party related to access to and use of public telecommunications services;
Measures taken or maintained by a Party related to the obligations of providers of public telecommunications services;
Other measures relating to public telecommunications networks or services; and
Measures taken or maintained by a Party related to the provision of information services.
2. Except to ensure that undertakings operating broadcasting stations and cable systems have access to and continuous use of public telecommunications services, this Chapter does not apply to any measure that a Party adopts or maintains in relation to broadcasting or broadcasting. Distribution by cable of radio or television programming.
3. Nothing in this Chapter shall be construed as:
Oblige a Party or compel a Party to require any undertaking to establish, construct, acquire, lease, operate or supply telecommunications networks or services, where such networks or services are not offered to the general public;
Prevent a Party from prohibiting persons operating private networks from using their networks to provide public telecommunications networks or services to third parties; or