4. The obligation to provide compensation under paragraph 1 and the right to suspend tariff concessions under paragraph 2 shall terminate on the date on which the bilateral safeguard measure is eliminated.
Section B. Global Safeguard Measures
Article 6.7. Global Safeguard Measures
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards, which govern exclusively the application of global safeguard measures, including the settlement of a dispute with respect to such a measure.
2. A Party may not adopt or maintain, with respect to the same good, and during the same period:
(a) a bilateral safeguard measure; and
(b) a global safeguard measure imposed pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards.
3. This Section confers no additional rights or obligations on the Parties with respect to actions taken pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards, except as detailed in this Section.
4. The Party imposing a comprehensive safeguard measure shall exclude imports of a good originating in the other Party if such imports:
(a) do not represent a substantial part of total imports; and
(b) do not contribute importantly to serious injury or threat of serious injury.
5. For the purposes of paragraph 3, the following criteria shall be taken into account:
(a) imports of a good from the other Party shall be considered not to account for a substantial part of total imports if such imports are not among the top five suppliers of the good subject to the proceeding, based on their share of total imports of such good during the immediately preceding 3 years, unless the Party conducting the investigation justifies through a reasoned resolution the need to include imports from the other Party on the grounds that their exclusion would affect the effectiveness of the measure;
(b) imports from the other Party shall normally be considered not to contribute importantly to serious injury or threat of serious injury if their rate of growth during the period in which the injurious increase in imports is substantially less than the rate of growth of total imports of the like or directly competitive merchandise from all sources of supply during the same period; and
(c) changes in the Party's share of total imports and the volume of imports shall be taken into account in determining the material contribution to serious injury or threat of serious injury.
6. Requests for initiation, and in any event, determinations of initiation and reports containing the technical reasoning on which the determination is based, shall contain sufficient background information to support and motivate the initiation of the investigation, including:
(a) the name and address available of the domestic producers of identical, similar or directly competitive goods that are representative of the domestic production, their share in the total domestic production of those goods, and the reasons why they are considered representative of that sector;
(b) a clear and complete description of the goods subject to the investigation, their applicable tariff classification and current tariff treatment, as well as the identification of the identical, like, or directly competitive goods, and the reasons why they are considered as such;
(c) import data for the 3 years available closest to the filing of the application and including the period of investigation;
(d) the data, in value and volume, on the total national production of the identical, similar or direct competitors merchandise, corresponding to the 3 available years closest to the filing of the application, and including the period of investigation, as well as the percentage that the petitioners represent in relation to the total national production, and the reasons that lead them to affirm that they are representative of the national industry;
(e) the data demonstrating that there is reasonable evidence of serious injury or threat of serious injury caused by the imports to the domestic production in question, and the basis for alleging that the increase in imports of such merchandise, in relative and absolute terms in relation to the domestic production, is the cause of the mentioned injury or threat thereof. Among the aspects to be analyzed are those provided for in Article XIX of GATT 1994, as well as all relevant factors of an objective and quantifiable nature having a bearing on the situation of the domestic industry, in particular the rate of growth of imports in absolute and relative terms, the share of the domestic market absorbed by the increased imports, changes in the level of sales, production, productivity, utilization of installed capacity, profits and losses, and employment, and (f) a description of the actions taken by the domestic industry to prevent the injury or threat of injury to the domestic industry.
(f) the description of the actions that the domestic industry intends to take in order to adjust its competitive conditions.
7. The Party conducting a safeguard proceeding pursuant to this Section shall, within 30 days following the expiration of the deadline for the submission of the response to the questionnaires, invite the other Party to hold consultations to discuss the possible adoption of a provisional safeguard measure, which shall have a maximum duration of 30 days from the day following receipt by the exporting Party of such invitation.
8. Global safeguard measures may only be adopted once the consultation period referred to in paragraph 7 has concluded. The holding of consultations shall not prevent the authority from concluding the investigation within the period established for such purpose in the Agreement on Safeguards.
Section C. Antidumping and Countervailing Measures
Article 6.8. Antidumping and Countervailing Measures
1. Each Party retains its rights and obligations under Articles VI and XVI of the GATT 1994, the Antidumping Agreement, and the Agreement on Subsidies and Countervailing Measures.
2. Nothing in this Agreement shall be construed to impose any rights or obligations on the Parties with respect to antidumping and countervailing measures.
3. Chapter 18 (Dispute Settlement) shall not apply to this Section.
Chapter 7. SANITARY AND PHYTOSANITARY MEASURES
Article 7.1. Definitions
The definitions in Annex A of the SPS Agreement are incorporated into and form part of this Chapter, mutatis mutandis.
Article 7.2. Objectives
The objectives of this Chapter are:
(a) to protect human, animal, and plant life and health in the territory of the Parties;
(b) to facilitate and increase trade in agricultural products between the Parties by addressing and resolving specific trade concerns regarding sanitary and phytosanitary measures;
(c) encourage the implementation of greater transparency in the application of sanitary and phytosanitary measures;
(d) establish a Committee to promote greater cooperation on sanitary and phytosanitary measures, and encourage activities between the authorities of the Parties; and
(e) increase technical cooperation at the bilateral level.
Article 7.3. Scope of Application
This Chapter applies to all sanitary and phytosanitary measures of a Party, in accordance with the SPS Agreement, that may, directly or indirectly, affect trade between the Parties.
Article 7.4. Rights and Obligations
For the effective implementation of this Chapter, the rights and obligations established in the SPS Agreement are incorporated into and form part of this Agreement, mutatis mutandis, without prejudice to the provisions of this Chapter.
Article 7.5. Transparency
1. The Parties shall make their best efforts to make known their annual or semi-annual work program on sanitary and phytosanitary measures at the same time that it is made public to their nationals.
2. The Parties shall transmit, preferably electronically, to the notification and enquiry points established pursuant to the SPS Agreement, the draft sanitary or phytosanitary regulations they intend to adopt. Each Party shall ensure that the draft sanitary or phytosanitary regulations it intends to adopt are subject to consultations for a period of 60 days, so that the Party concerned may be aware of their content, as well as to allow for comments from any Party or interested persons, and that these may be considered. Emergency situations shall be exempt from the aforementioned period, in accordance with Annex B of the SPS Agreement.
3. Where a Party considers that a sanitary or phytosanitary measure of the other Party adversely affects or may adversely affect its exports, and the measure is not based on relevant international standards, guidelines or recommendations, it may request that Party to inform it in writing, within a period not exceeding 30 days, of the reasons for the measure.
4. In addition, the Parties shall notify each other of:
(a) changes occurring in the field of animal health and food safety, such as the occurrence of exotic diseases or sanitary alerts in food products within 24 hours of the diagnostic detection of the problem;
(b) changes in the phytosanitary field, such as the appearance of quarantine pests or the spread of pests under official control, within 72 hours of their verification;
(c) findings of epidemiological importance and significant changes in relation to diseases and pests not included in subparagraphs (a) and (b) that may affect trade between the Parties, within a maximum period of 10 days;
(d) outbreaks of diseases scientifically proven to be caused by the consumption of imported processed or unprocessed foods;
(e) the causes or reasons for which a good of the exporting Party is rejected, within 7 days, with the exception of emergency situations, which shall be notified immediately; and/or
(f) the exchange of information on matters relating to the development and application of sanitary and phytosanitary measures that affect or may affect trade between the Parties, with a view to minimizing their negative effects on trade.
Article 7.6. Approval of Establishments
Renewal of approvals of establishments for the export of livestock products and by-products shall be requested at least 120 days prior to the date of expiration. If the exporting Party complies with the deadline stipulated in this provision, the importing Party shall allow it to continue exporting the product until its competent authorities complete the corresponding inspection procedures.
Article 7.7. Expedited Mechanism for Addressing Specific Trade Concerns.
1. The Parties may hold technical discussions on specific trade concerns regarding sanitary and phytosanitary measures, for which they shall meet in the modality they agree (such as face-to-face meetings, videoconferences, or others), in order to seek a mutually acceptable solution.
2. For such purpose, the Parties shall meet in the agreed modality within 30 days following the request made by any of them. If necessary, the Party to which the request for technical discussions has been made may request an additional period of time, which shall be agreed upon by both Parties.
Article 7.8. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish the Committee on Sanitary and Phytosanitary Measures. The Committee shall be composed of representatives of both Parties with responsibilities for trade, sanitary, phytosanitary, and food safety matters, in accordance with Annex 7.8 of this Chapter.
2. The Committee shall assist the Commission in the performance of its functions.
3. The first meeting of the Committee shall be held no later than 90 days after the entry into force of this Agreement. For this meeting, the Parties shall accredit their representatives through an exchange of official communications.
4. The Committee shall establish at its first meeting, if it deems it appropriate, its rules of procedure.
5. Meetings of the Committee shall be held at the request of any of the Parties.
6. The Committee shall meet in ordinary session at least once a year, unless otherwise agreed by the Parties, and in extraordinary session as often as necessary, within 30 days from the date of the request made pursuant to paragraph 5. The meetings of the Committee may be held in person or through any technological means. When the meetings are held in person, they shall be held alternately in the territory of each Party and it shall be the responsibility of the host Party to organize the meeting.
7. The agreements of the Committee shall be adopted by consensus and shall be reported to the corresponding authorities.
8. The functions of the Committee shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) serving as a forum to discuss problems related to the development or application of previously notified sanitary, phytosanitary, and food safety measures that affect or may affect trade between the Parties, to establish mutually acceptable solutions, and to evaluate progress in implementing such solutions;
(c) make appropriate recommendations to the Administrative Commission on matters within its competence;
(d) establish ad hoc technical working groups in the areas of animal health, plant health or food safety, and indicate their terms of reference and terms of reference, for the purpose of addressing a matter referred to them by the Committee;
(e) agree on actions, procedures and timelines for the recognition of equivalencies; the streamlining of the risk assessment process; the recognition of pest or disease free areas or zones and areas or zones of low pest or disease prevalence; and control, inspection and approval procedures, recommending the adoption of these to the Administrative Commission;
(f) to consult on matters, positions and agendas for meetings of the Committee on Sanitary and Phytosanitary Measures of the WTO, the various Codex Alimentarius Committees (including meetings of the Codex Alimentarius Commission); the International Plant Protection Convention (IPPC); the World Organization for Animal Health (OIE) and other international and regional fora, as appropriate, on sanitary and phytosanitary measures;
(g) coordinate the exchange of information on sanitary and phytosanitary measures among the Parties;
(h) carry out the necessary actions for the training and specialization of technical personnel by promoting the exchange of technical experts, including cooperation in the development, application and enforcement of sanitary and phytosanitary measures;
(i) seek to the greatest extent possible, technical assistance and cooperation from competent international and regional organizations when appropriate, in order to obtain scientific and technical advice;
(j) report annually to the Commission on the implementation of this Chapter;
(k) review the operation and implementation of this Chapter and, as appropriate, submit proposals for amendments to the Commission, taking into account the experience gained in its implementation; and
(l) any other matter related to this Chapter directed by the Commission.
Article 7.9. Technical Cooperation
1. The Parties shall:
(a) facilitate the provision of bilateral technical assistance, on mutually agreed terms and conditions, to strengthen their sanitary and phytosanitary measures, as well as related activities, including research, process technology, among others;
(b) provide information on their technical assistance programs relating to sanitary and phytosanitary measures in areas of particular interest; and
(c) support the development, elaboration, adoption, and implementation of international and regional standards, where appropriate.
2. The costs of technical assistance activities shall be subject to the availability of financial resources and priorities for each Party. Likewise, the Party concerned shall bear the costs inherent to the technical assistance provided by the other Party.
Chapter 8. TECHNICAL BARRIERS TO TRADE
Article 8.1. Definitions
For the purposes of this Chapter, the terms and definitions in Annex 1 of the WTO TBT Agreement, ISO/IEC Guide 2 "Standardization and Related Activities - General Vocabulary", and ISO/IEC 17000 "Conformity Assessment - Vocabulary and General Principles", in force or those replacing them, shall apply.
Article 8.2. Objectives
The objectives of this Chapter are to facilitate and increase trade in goods by identifying, preventing and eliminating unnecessary obstacles to trade between the Parties that may arise as a result of the preparation, adoption and application of standards, technical regulations and conformity assessment procedures and to promote cooperation between the Parties.
Article 8.3. Rights and Obligations
The TBT Agreement is incorporated into and forms an integral part of this Chapter, mutatis mutandis.
Article 8.4. Compliance with Recommendations of the Committee on Technical Barriers to Trade of the WTO
To the extent possible, the Parties shall comply with the present and future recommendations issued by the WTO Committee on Technical Barriers to Trade, arising from the triennial reviews conducted therein.
Article 8.5. Scope of Application
1. This Chapter shall apply to the standards, technical regulations, and conformity assessment procedures (1) developed, adopted, and applied by the Parties, such as those developed, adopted, and applied by the Parties, as defined in the TBT Agreement, that may directly or indirectly affect trade in goods between the Parties.
2. This Chapter shall not apply to sanitary and phytosanitary measures, nor to purchasing specifications established by governmental bodies for their production or consumption needs.
Article 8.6. Use of International Standards
1. The Parties shall comply with the application of the principles set out in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since January 1, 1995, Annex to Part I.2 of the Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations under Articles 2 and 5 and Annex 3 of the TBT Agreement (2) issued by the WTO Committee on Technical Barriers to Trade.
2. The Parties shall promote the application of ISO/IEC Guides 21-1:2005, 21- 2:2005, or those that replace them, in the adoption of international standards.
Article 8.7. Technical Regulations
1. Each Party shall favorably consider accepting as equivalent the technical regulations of the other Party, even if they differ from its own, provided that it is satisfied that they adequately fulfill the legitimate objectives of its own technical regulations.
2. When a Party does not accept a technical regulation of the other Party as equivalent to one of its own, it shall, at the request of the other Party, explain the reasons for its decision.
Article 8.8. Conformity Assessment
1. To the extent possible, a Party shall accept the results of conformity assessment procedures with respect to standards and technical regulations of the other Party, even if those procedures differ from its own, provided that it is satisfied that they provide a degree of conformity with the relevant technical regulations or standards equivalent to that provided by the procedures that the accepting Party carries out or the result of which it accepts.
2. If a Party does not accept the results of a conformity assessment procedure conducted in the territory of the other Party, it shall provide reasons for its decision.
3. Without prejudice to the provisions of paragraphs 1 and 2, the Parties may initiate negotiations for the conclusion of mutual recognition agreements between competent bodies in areas of conformity assessment, following the principles of the TBT Agreement and the recommendations issued by the WTO Committee on Technical Barriers to Trade.
4. If a Party rejects a request by the other Party to enter into or conclude negotiations to reach a mutual recognition agreement to facilitate the acceptance in its territory of the results of conformity assessment procedures carried out by bodies in the territory of the other Party, it shall provide reasons for its decision.
5. Each Party shall accredit, approve or, in accordance with its national legislation, recognize conformity assessment bodies in the territory of the other Party, under terms no less favorable than those granted to conformity assessment bodies in its territory.
6. If a Party refuses to accredit, approve or, under its national law, recognize a conformity assessment body in the territory of the other Party, it shall provide reasons for its decision.
Article 8.9. Transparency
1. The Parties shall transmit to each other, preferably electronically, through the contact point established by each Party pursuant to Article 10 of the TBT Agreement, notifications of draft technical regulations and conformity assessment procedures and final technical regulations and conformity assessment procedures, at the same time as the Party notifies the WTO, under the terms of that Agreement. Such notification shall include an electronic link to the notified document, or a copy thereof.
2. To the extent possible, the Parties shall communicate those draft technical regulations or conformity assessment procedures that are consistent with the technical content of relevant international standards, guidelines, guides, directives, guidelines or recommendations. The Parties shall, to the extent possible, publicize their annual or semi-annual work program on standards, technical regulations and conformity assessment procedures at the same time that it is made public to their nationals.
3. Each Party shall provide a period of at least 60 days for interested parties of the other Party to have the opportunity to comment and consult on the notified draft technical regulation or conformity assessment procedure; and to take such comments and consultations into consideration. To the extent possible, a Party shall give favorable consideration to requests to extend the period established for comments.
4. In cases of urgency, when a Party makes a notification of a technical regulation or conformity assessment procedure adopted under Articles 2.10, 3.2, 5.7 and 7.2 of the TBT Agreement, it shall preferably transmit it electronically to the other Party, through the established contact point, at the same time that Party notifies the WTO under the terms of the TBT Agreement. To the extent possible, the Parties shall communicate those technical regulations or conformity assessment procedures that are consistent with the technical content of relevant international standards, guidelines, guides, directives, guidelines or recommendations.
5. Each Party shall publish or make publicly available its responses to comments received during the public consultation period, if possible, before the date on which the final technical regulation or conformity assessment procedure is published.
6. Each Party shall, on request of the other Party, provide information about the objective and rationale of a technical regulation or conformity assessment procedure that the Party has adopted or proposes to adopt. To the extent possible, each Party shall promote technological mechanisms to facilitate the exchange of information at stages prior to the publication of draft technical regulations and/or conformity assessment procedures.
7. The Parties shall ensure the transparency of their technical regulations and conformity assessment procedures by publishing the drafts thereof, as well as those adopted, on official, free and publicly accessible websites, to the extent that they exist or are implemented.
8. The authorities of the Parties in charge of the notification referred to in this Article are indicated in Annex 8.9.
9. When a Party detains at the port of entry a good originating in the territory of the other Party due to detected non-compliance with a technical regulation, it shall notify as soon as possible the importer of the reasons for the detention.
Article 8.10. Regulatory Cooperation
1. Regulatory cooperation between the Parties shall have as its objectives, inter alia:
(a) strengthen mechanisms to increase transparency in the technical regulatory, standardization, and conformity assessment processes;
(b) to simplify compliance with the requirements established in technical regulations and conformity assessment procedures; and
(c) promote, in areas where feasible, the compatibility and harmonization of technical regulations, standards, and conformity assessment procedures.
2. The Parties, through the Committee on Technical Barriers to Trade, shall establish work programs, agreements or annexes on regulatory cooperation. These shall be established by the regulatory authorities involved and the corresponding sectors, in order to establish specific actions to facilitate trade between the Parties.
3. Regulatory cooperation activities may include, among others:
(a) in the area of standardization and technical regulations:
(i) exchange of information in order to learn about the regulatory systems of the Parties;
(ii) harmonization and compatibility of standards and technical regulations, based on international standards, guides and guidelines;
(iii) to the extent possible, bring common positions to international standardization forums, based on mutual interests;
(iv) developing mechanisms for technical assistance and confidence building between the Parties; and
(v) allowing persons outside the government of the other Party to participate in the development of its standards, technical regulations and conformity assessment procedures at the consultation stage, where persons outside its government are allowed to participate in the development of such measures;
(b) in the area of conformity assessment:
(i) promoting the compatibility and harmonization of conformity assessment procedures;
(ii) encourage the conclusion of mutual recognition agreements, in order to recognize the results of the conformity assessment of the other Party and thereby simplify the procedures for testing, inspection, certification and accreditation, under the principles of mutual and satisfactory benefits;
(iii) encouraging private bodies, which carry out conformity assessment activities in the territories of the Parties, to enter into mutual recognition agreements with each other;
(iv) the adoption of accreditation procedures, in accordance with their national legislation, to qualify conformity assessment bodies located in the territory of the other Party, under terms no less favorable than those granted to conformity assessment bodies in their territory; and
(v) the designation of conformity assessment bodies and the recognition of the results of conformity assessment procedures conducted in the territory of the other Party.
Article 8.11. Cooperation and Technical Assistance
1. The Parties agree to provide each other with technical cooperation and assistance, on mutually agreed terms and conditions, to, inter alia:
(a) further the implementation of this Chapter;
(b) further the implementation of the TBT Agreement;
(c) strengthen the capacities of their respective standardizing, technical regulations, conformity assessment, metrology, and information and notification systems bodies in the field of the TBT Agreement;
(d) collaborate in the education and training of human resources;
(e) collaborate in the development and application of international standards, guidelines, directives, guides, guidelines or recommendations;
(f) to collaborate in the strengthening of good regulatory practices; and