Article 15.9. Non-application of Chapter 18 (Dispute Settlement)
A Party shall not have recourse to Chapter 18 (Dispute Settlement) for any issue arising from or relating to this Chapter.
Exchange of Letters
1. 18 April 2024
H.E. Germán Umaña Mendoza
Minister of Trade, Industry and Tourism
Republic of Colombia
Your Excellency,
In connection with the signing on this date of the Comprehensive Economic Partnership Agreement (the ?Agreement?), between the United Arab Emirates ("UAE") and the Republic of Colombia ("Colombia"), I have the honour to confirm UAE's understanding as follows:
The UAE is an independent, sovereign, federal State, with seven sovereign Member Emirates ("Member Emirates"), and pursuant to its Constitution, each Member Emirate retains full sovereignty, sovereign rights and exclusive jurisdiction over its natural resources and wealth of which the Energy Resources Sector is the subject matter of this letter. For the purposes of this letter, "Energy Resources Sector" shall mean all hydrocarbons such as oil, gas, and condensates, derivates and primary by-products thereof with respect to ownership, management, exploration, development and production, exploitation (including reservoir management), transportation, storage, refining and processing, and distribution up to and including retail distribution.
In recognition of the foregoing, the Agreement shall not grant any rights to Colombia or create any obligations for the UAE or any of its Member Emirates with regard to the Energy Resources Sector. Accordingly, the Energy Resources Sector is excluded from all aspects and provisions of the Agreement, including the Chapter on Dispute Settlement (Chapter 18). All matters pertaining to the Energy Resources Sector of any of the Member Emirates are within the exclusive jurisdiction of the Member Emirates, and all determinations and decisions of each Member Emirate made by such Member Emirate's competent authorities pertaining to the Energy Resources Sector ("Competent Authorities") that are the subject of its jurisdiction shall be final, binding and not subject to review or challenge.
Subsequent to the date of entry into effect of the Agreement and in the event that the UAE with the concurrence of the Member Emirates' Competent Authorities grants any rights excluded by this letter to a third country with respect to the Energy Resources Sector by a Free Trade Agreement, such rights shall be granted to Colombia.
Notwithstanding the above, in the event of a difference in the interpretation or application of this letter, the UAE and Colombia commit to have recourse to consultations at the request of either Party to this letter. For the purpose of such consultation, Article 6 (consultations) of the Dispute Settlement (Chapter 18) except paragraph 8, shall apply mutatis mutandis. The Parties shall make every attempt through consultation to arrive at a mutually satisfactory resolution within 60 days from the request. In the event that the UAE and Colombia have failed to achieve a mutually agreed solution within 60 days following recourse to consultations, or if the UAE fails to comply with the mutually agreed solution within the agreed timeframe, the only recourse of Colombia shall be that it may suspend benefits under the Agreement proportionate to the trade effects which the measure in question causes or threatens to cause. Moreover, Colombia shall repeal its compensatory measure to the extent that the UAE's measure in question ceases to apply. The above-mentioned procedure shall also apply in case of any dispute relating to whether Colombia's compensatory measure is proportionate, with the UAE likewise ultimately having the right to suspend benefits proportionately.
The UAE and Colombia further agree that this letter shall constitute an integral part of the Agreement and that, in the unlikely event of any inconsistency between this letter and any provisions of the Agreement, this letter shall prevail to the extent of that inconsistency.
I would be grateful for your confirmation that Colombia agrees with this understanding.
Sincerely yours,
H.E. Dr. Thani bin Ahmed Al Zeyoudi
Minister of State for Foreign Trade
Ministry of Economy
United Arab Emirates
2. H.E. Dr. Thani bin Ahmed Al Zeyoudi
Minister of State for Foreign Trade
Ministry of Economy
United Arab Emirates
Your Excellency,
I have the honor to acknowledge the receipt of your letter dated 18 of April 2024 which reads as follows:
"In connection with the signing on this date of the Comprehensive Economic Partnership Agreement (the "Agreement"), between the United Arab Emirates ("UAE") and the Republic of Colombia ("Colombia"), I have the honour to confirm UAE's understanding as follows:
The UAE is an independent, sovereign, federal State, with seven sovereign Member Emirates ("Member Emirates"), and pursuant to its Constitution, each Member Emirate retains full sovereignty, sovereign rights and exclusive jurisdiction over its natural resources and wealth of which the Energy Resources Sector is the subject matter of this letter. For the purposes of this letter, "Energy Resources Sector" shall mean all hydrocarbons such as oil, gas, and condensates, derivates and primary by-products thereof with respect to ownership, management, exploration, development and production, exploitation (including reservoir management), transportation, storage, refining and processing, and distribution up to and including retail distribution.
In recognition of the foregoing, the Agreement shall not grant any rights to Colombia or create any obligations for the UAE or any of its Member Emirates with regard to the Energy Resources Sector. Accordingly, the Energy Resources Sector is excluded from all aspects and provisions of the Agreement, including the Chapter on Dispute Settlement (Chapter 18). All matters pertaining to the Energy Resources Sector of any of the Member Emirates are within the exclusive jurisdiction of the Member Emirates, and all determinations and decisions of each Member Emirate made by such Member Emirate?s competent authorities pertaining to the Energy Resources Sector ("Competent Authorities?) that are the subject of its jurisdiction shall be final, binding and not subject to review or challenge.
Subsequent to the date of entry into effect of the Agreement and in the event that the UAE with the concurrence of the Member Emirates' Competent Authorities grants any rights excluded by this letter to a third country with respect to the Energy Resources Sector by a Free Trade Agreement, such rights shall be granted to Colombia.
Notwithstanding the above, in the event of a difference in the interpretation or application of this letter, the UAE and Colombia commit to have recourse to consultations at the request of either Party to this letter. For the purpose of such consultation, Article 6 (consultations) of the Dispute Settlement (Chapter 18) except paragraph 8, shall apply mutatis mutandis. The Parties shall make every attempt through consultation to arrive at a mutually satisfactory resolution within 60 days from the request.
In the event that the UAE and Colombia have failed to achieve a mutually agreed solution within 60 days following recourse to consultations, or if the UAE fails to comply with the mutually agreed solution within the agreed timeframe, the only recourse of Colombia shall be that it may suspend benefits under the Agreement proportionate to the trade effects which the measure in question causes or threatens to cause. Moreover, Colombia shall repeal its compensatory measure to the extent that the UAE's measure in question ceases to apply. The above-mentioned procedure shall also apply in case of any dispute relating to whether Colombia's compensatory measure is proportionate, with the UAE likewise ultimately having the right to suspend benefits proportionately.
The UAE and Colombia further agree that this letter shall constitute an integral part of the Agreement and that, in the unlikely event of any inconsistency between this letter and any provisions of the Agreement, this letter shall prevail to the extent of that inconsistency."
I am pleased to further confirm that the proposed understanding of the United Arab Emirates with regards to the Energy Resources Sector as specified in the letter is accepted by the Republic of Colombia and shall constitute an integral part of the Comprehensive Economic Partnership Agreement between the Republic of Colombia and the United Arab Emirates.
Please accept, Your Excellency, the assurances of my highest consideration.
Yours Sincerely,
H.E. Germán Umaña Mendoza
Minister of Trade, Industry and Tourism
The Republic of Colombia
Chapter 16. ADMINISTRATION OF THE AGREEMENT & INSTITUTIONAL PROVISIONS
Article 16.1. Joint Committee
1. The Parties hereby establish a Joint Committee.
2. The Joint Committee:
(a) shall be composed of representatives of both Parties. Unless otherwise agreed, the principal representative of each Party shall be the cabinet-level officer or Minister primarily responsible for international trade, or a person designated by the cabinet-level officer or Minister;
(b) shall be co-chaired by a representative of the Ministry of Trade, Industry and Tourism (Ministerio de Comercio, Industria y Turismo) on the Colombian side, and by a representative of the Ministry of Economy on the UAE side, or their successors; and
(c) may establish standing or ad hoc sub-committees or working groups and assign any of its powers thereto.
Article 16.2. Joint Committee Procedures
1. The Joint Committee shall meet within one year from the entry into force of this Agreement. Thereafter, it shall meet every two years unless the Parties agree otherwise, to consider any matter relating to this Agreement. The regular sessions of the Joint Committee shall be held alternately in the territories of the Parties.
2. The Joint Committee shall also hold special sessions without undue delay from the date of a request thereof from either Party.
3. All decisions of the Joint Committee shall be taken by mutual agreement.
4. The Joint Committee shall establish its own rules of working procedures.
5. Meetings of the Joint Committee and of any standing or ad hoc sub-committees or working groups may be conducted in person or by any other means as determined by the Parties.
Article 16.3. Joint Committee
Functions
1. The functions of the Joint Committee shall be as follows:
(a) to administer this Agreement and ensure its proper implementation;
(b) to review and assess the results and overall operation of this Agreement in the light of the experience gained during its application and its objectives;
(c) to consider any amendments to this Agreement that may be proposed by either Party, including the modification of concessions made under this Agreement;
(d) to endeavour to amicably resolve disputes between the Parties arising from the interpretation or application of this Agreement, without prejudice of what the Agreement provides in Chapter 18 (Dispute Settlement);
(e) to supervise and coordinate the work of all sub-committees and working groups established under this Agreement;
(f) to consider any other matter that may affect the operation of this Agreement;
(g) to propose mutually agreed interpretation to be given to the provisions of this Agreement, if requested by either Party;
(h) to adopt decisions or make recommendations as envisaged by this Agreement;
(i) to review the possibility of further removel of obstacles to trade between the Parties and the further development of the trade relationship; and
(j) to carry out any other functions as may be agreed by the Parties.
2. The Joint Committee may:
(a) agree to initiate negotiations, with the aim of deepening the liberalisation already achieved;
(b) consider, recommend, and approve the adoption of any amendment or modification to the provisions of this Agreement. Any such amendment or modification shall enter into force in accordance with the procedures set forth in Article 19.2 (Amendments);
(c) modify by a Joint Committee decision:
(i) the Annex 2B (Reduction or Elimination of Customs Duties), with the purposes of adding one or more goods excluded in the Schedule of a Party;
(ii) the phase-out periods established in Annex 2B (Reduction or Elimination of Customs Duties), with the purposes of accelerating the tariff reduction;
(iii) the specific rules of origin established in Annex 3A (List of Product Specific Rules of Origin), Certificate of Origin contained in Annex 3B (Certificate of (Certificate of Origin), Procedures for the Issuance of Electronic Certificates of Origin as specified in Article 3.22 (Electronic Data Origin Exchange System), Invoice Declaration contained in Annex 3C (Invoice Declaration), Procedures for the Issuance of Paper Certificates of Origin in Article 3.21 (Certificate of Origin in Paper Format);
(iv) the Schedules to Annex 10A (List of Commitments in Services); and
(v) the Rules of Procedure for the Panel established in Annex 17A and the Code of Conduct for Panelists, Conciliators, Mediators, and Experts established in Annex 17B.
(d) Each Party shall implement, subject to the completion of its applicable internal legal procedures and upon notification of such, any modification referred to in the previous subparagraph, within such period as the Parties may agree;
(e) adopt interpretations of the provisions of this Agreement. Such interpretations shall be taken into consideration by Panels established under Chapter 18 (Dispute Settlement). However, interpretations adopted by the Joint Committee shall not constitute an amendment or modification to the provisions of this Agreement; and
(f) take such other action in the exercise of its functions as the Parties may agree.
Article 16.4. The Agreement Coordinators
1. Each Party shall designate a coordinator to receive and facilitate official communications and handle any bilateral matter related to the administration of this Agreement.
2. The coordinators shall:
(a) work jointly to develop agendas;
(b) make other preparations for the Joint Committee meetings;
(c) follow-up on the Joint Committee's decisions as appropriate;
(d) act as contact points to facilitate communication between the Parties on any matter covered by this Agreement, unless otherwise provided for in this Agreement;
(e) receive any notifications and information submitted under this Agreement, unless otherwise provided for in this Agreement; and
(f) assist the Joint Committee in any other matter referred to them by the Joint Committee.
3. The coordinators of this Agreement may meet as necessary.
4. All official communications in relation to this Agreement shall be in the English language
Article 16.5. Establishment of Subcommittees and Working Groups
1. The Parties hereby establish the following Subcommittees:
(a) Subcommittee on Customs, Trade Facilitation, and Rules of Origin; and
(b) Subcommittee on Trade in Goods.
2. Any Subcommittee, or working group, established under this Agreement shall comprise representatives from Colombia and the UAE.
3. The respective scope of competence and duties of the Subcommittees provided for in this Agreement are defined in the relevant provisions of each Chapter.
4. The Joint Committee may establish other Subcommittees, working groups, or any other specialised bodies and delegate responsibilities to them in order to assist it in the performance of its tasks. For that purpose, the Joint Committee shall determine the composition, duties, and rules of procedure of such Subcommittees, working groups or specialised bodies.
5. The Subcommittees, working groups, and specialised bodies shall inform the Joint Committee, sufficiently in advance, of their schedule of meetings and of the agenda of those meetings. The Subcommittees, working groups, and specialised bodies shall submit summaries of their meetings to the Joint Committee.
Chapter 17. EXCEPTIONS
Article 17.1. General Exceptions
1. For the purposes of Chapter 2 (Trade in Goods), Chapter 3 (Rules of Origin) and Chapter 4 (Customs Procedures and Trade Facilitation), Article XX of the GATT 1994 and its interpretative note are incorporated into and form part of this Agreement, mutatis mutandis.
2. For the purposes of Chapter 10 (Trade in Services) and Chapter 11 (Digital Trade), Article XIV of the GATS, including its footnotes, is incorporated into and forms part of this Agreement, mutatis mutandis.
Article 17.2. Security Exceptions
In light of Article XXI of the GATT 1994 and Article XIV bis of GATS, nothing in this Agreement shall be construed:
(a) to require any Party to furnish any information, the disclosure of which it considers contrary to its essential security interests;
(b) to prevent any Party from taking any action or measures which it considers necessary for the protection of its essential security interests; (1) or
(c) to prevent any Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security, or for the protection of its own essential security interests, in accordance with international law.
Article 17.3. Taxation
1. Except as set out in this Article, nothing in this Agreement shall apply to taxation measures.
2. Notwithstanding paragraph 1, Article 2.3 (National Treatment) shall apply to taxation measures to the same extent as Article III of the GATT 1994 and its interpretative notes.
3. Nothing in this Agreement shall be construed to prevent a Party from adopting or enforcing any measure which:
(a) aims at ensuring the effective and equitable imposition and collection of direct taxes;
(b) distinguishes in the application of the relevant provisions of domestic fiscal legislation, including those aimed at ensuring the progressive taxation and collection of taxes, between taxpayers who are not in the same situation, in particular with regard to their place of residence or with regard to the place where their capital is invested; or
(c) aims at preventing the avoidance or evasion of taxes pursuant to tax conventions, tax provisions of other agreements, or domestic fiscal legislation.
4. 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 tax convention, that tax convention shall prevail to the extent of the inconsistency.
5. For the purposes of this Article:
(a) tax convention means conventions, agreements, or arrangements relating wholly or mainly to taxation, including the avoidance of double taxation; and
(b) taxes and taxation measures do not include a customs duty as defined in Article 1.1 (General Definitions).
Article 17.4. Restriction to Safeguard the Balance of Payments
1. The Parties shall endeavour to avoid the imposition of restrictions to safeguard the balance of payments.
2. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to transfers or payments from the current account in the event of a serious balance of payments and external financial difficulties or a threat thereof.
3. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to the transfers or payments related to capital movements. The latter shall be deemed applicable in the events that cause, or threaten to cause, serious balance of payments difficulties, (2) external financial difficulties, or serious difficulties in macro-economic management, in particular in monetary or foreign exchange policy.
4. Any measure that is adopted or maintained in accordance with paragraphs 1 or 2 shall:
(a) be applied in a non-discriminatory manner so that no Party receives a less favourable treatment than any other Party to the Pacific Alliance or non-Party;
(b) be consistent with the Articles of Agreement of the International Monetary Fund;
(c) avoid unnecessary damage to the commercial, economic, and financial interests of the other Party;
(d) not exceed those necessary to deal with the circumstances set out in paragraphs 1 or 2, and
(e) be temporary and be phased out progressively as soon as the circumstances set out in paragraphs 1 or 2 improve.
5. With regard to the trade in goods, no provision of this Agreement shall be construed as preventing a Party from adopting measures to restrict importations in order to safeguard its external financial position or balance of payments. These measures which restrict importations must be consistent with the GATT 1994 and the Understanding of the Balance of Payments Provisions of the GATT 1994.
6. With regard to the trade in services, no provision in this Agreement shall be construed to prevent a Party from taking restrictive trade measures in order to safeguard its external financial position or balance of payments. These restrictive measures must be consistent with the GATS.
7. A Party that adopts or maintains measures in accordance with paragraphs 1, 2, 4, or 5 shall:
(a) provide prompt notice of the measures adopted or maintained to the other Party, including any modification thereof; and
(b) promptly commence consultations with the other Party to review the measures maintained or adopted by it:
(i) in the case of capital movements, respond to the other Party that makes an enquiry on the measures adopted by it, provided that the said enquiry is not otherwise taking place outside of this Agreement; and
(ii) in the case of current account transactions, provided that consultations related to the adopted measures are not carried out before the WTO, a Party shall, if requested to, promptly commence consultations with the other Party.
Article 17.5. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.3
3 Economic operator means individuals or of particular enterprises, public or private, including any service supplier as defined in Article 10.1 (Definitions).
Chapter 18. DISPUTE SETTLEMENT
Section A. Objective and Scope
Article 18.1. Objective
The objective of this Chapter is to establish an effective and efficient mechanism for preventing and settling disputes between the Parties concerning the interpretation and application of this Agreement with a view to reaching, where possible, a mutually agreed solution.
Article 18.2. Cooperation
The Parties shall endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultation to arrive at a mutually satisfactory resolution of any matter that might affect its operation and application.
Article 18.3. Scope of Application
1. Unless otherwise provided in this Agreement, the provisions of this Chapter shall apply to the settlement of disputes between the Parties regarding the interpretation and application of the provisions of this Agreement, and wherever a Party considers that:
(a) a measure of the other Party is inconsistent with one of its obligations under this Agreement; or
(b) the other Party has otherwise failed to carry out one of its obligations under this Agreement, resulting in a violation of the Agreement.