(g) share information of a non-confidential nature that has served as a basis for a Party in the development of a technical regulation.
2. The Parties shall encourage that the activities developed in the framework of technical cooperation and assistance serve as a reference in a process of recognition of conformity assessment, as established in Article 8.8 of this Chapter.
3. On request of a Party that has an interest in developing a technical regulation similar to the technical regulation of the other Party and to minimize duplication of costs, the other Party shall provide any available information, studies, or other relevant documents on which it has based the development of that technical regulation, except for confidential information.
Article 8.12. Committee on Technical Barriers to Trade
1. The Parties establish the Committee on Technical Barriers to Trade, which shall be composed of representatives of each Party, in accordance with Annex 8.12, and shall assist the Commission in the performance of its functions.
2. The Committee shall establish, if it considers it appropriate, its rules of procedure.
3. Meetings of the Committee shall be held at the request of the Commission, the Free Trade Agreement Coordinators or at the request of any of the Parties to address matters of interest to it.
4. The agreements of the Committee shall be adopted by consensus and reported to the appropriate bodies.
5. The meetings of the Committee may be held in person or through any technological means. When the meetings are face-to-face, 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.
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 in accordance with paragraph 3.
7. Agreements arising from the meeting shall be adopted by consensus among the Parties.
8. The functions of the Committee shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) making appropriate recommendations to the Commission on matters within its competence;
(c) facilitating technical consultations and issuing expeditious recommendations on specific technical barriers to trade issues, as well as serving as a forum for the discussion of problems arising from the application of particular standards, technical regulations and conformity assessment procedures, with a view to reaching mutually acceptable alternatives;
(d) establish ad hoc technical working groups on technical barriers to trade and indicate their terms of reference and terms of reference, with the objective of addressing a matter mandated by the Committee;
(e) consult on issues, positions and agendas for meetings of the WTO Committee on Technical Barriers to Trade, the various international standardization bodies and other international and regional fora on technical barriers to trade;
(f) create work programs with respect to the activities referred to in this Chapter;
(g) to 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 technical regulations, standards and conformity assessment procedures;
(h) report annually to the Commission on the implementation of this Chapter; and
(i) any other matter directed by the Commission.
Article 8.13. Technical Consultations
1. The Parties may hold technical consultations on specific trade concerns of concern to Mexico and Panama with a view to finding a mutually appropriate solution. In this case, the Parties shall meet in the modality they agree upon (such as face-to-face meetings, videoconferences, or others).
2. The Party that has been requested to hold technical consultations shall meet with the requesting Party (in the agreed modality) within 15 days of the request and, if necessary, may request additional time.
Article 8.14. Exchange of Information
In accordance with the provisions of this Chapter, any information or explanation requested by a Party shall be provided by the other Party in printed or electronic form within a reasonable period. The Party shall endeavor to respond to each request within 60 days of the submission of such request and, if necessary, may request additional time.
Article 8.15. Sectoral Annexes
The Parties may negotiate Sectoral Annexes that include disciplines complementary to this Chapter on the basis of the work program established by the Committee on Technical Barriers to Trade referred to in Article 8.12(8)(f).
Chapter 9. CROSS-BORDER TRADE IN SERVICES
Article 9.1. Definitions
For the purposes of this Chapter, the following definitions shall apply:
cross-border trade in services or cross-border supply of services: the supply of a service:
(a) from the territory of a Party into the territory of the other Party;
(b) in the territory of a Party, by a person of that Party, to a person of the other Party, or
(c) by a national of a Party into the territory of the other Party;
but does not include the supply of a service in the territory of a Party by a covered investment of the other Party, as defined in Article 10.1 (Definitions);
measures adopted or maintained by a Party: measures adopted or maintained by:
(a) the government at the central, regional or local level, or.
(b) a non-governmental body in the exercise of central, regional or local governmental authority;
national: a natural person who is a national of a Party in accordance with Article 2.1 (General Definitions), or a permanent resident of a Party;
service supplier of a Party: a person of the Party that intends to supply or does supply a service (1);
specialized air services: any air service other than transportation, such as firefighting, spraying, aerial spraying, aerial surveying, aerial mapping, aerial photography, parachute service, glider towing, log transport and construction services, and other services related to agriculture, industry and inspection;
aircraft repair and maintenance services: activities performed on an aircraft or part of an aircraft while the aircraft is out of service, but does not include so-called line maintenance;
computer reservation system (CRS) services: services provided through computerized systems containing information about air carriers' schedules, available seats, fares and fare setting rules, and through which reservations can be made or tickets issued;
professional services: services which for their supply require specialized higher education (2) or equivalent training or experience and the exercise of which is authorized or restricted by a Party, but does not include services supplied by persons engaged in a trade or to crew members of merchant ships and aircraft;
services supplied in the exercise of governmental authority: any service that is supplied neither on a commercial basis nor in competition with one or more service suppliers; and
sale or marketing of an air transport service: the opportunities for the air carrier concerned to freely sell and market its air transport services, and all aspects of marketing, such as market research, advertising and distribution, but does not include the pricing of air transport services or the applicable conditions.
Article 9.2. Scope of Application
1. This Chapter shall apply to measures adopted or maintained by a Party affecting cross-border trade in services supplied by service suppliers of the other Party. Such measures include those affecting:
(a) the production, distribution, marketing, marketing, sale and supply of a service;
(b) the purchase or use of, or payment for, a service;
(c) access to and use of distribution and transportation systems, or telecommunications networks and services related to the supply of a service;
(d) the presence in its territory of a service supplier of the other Party, or
(e) the provision of a bond or other form of financial security as a condition for the supply of a service.
2. This Chapter shall not apply to:
(a) financial services as defined in Chapter 11 (Financial Services);
(b) air services (3) , including air transport services, domestic and international, scheduled and non-scheduled, and related services in support of air services, except:
(i) aircraft repair and maintenance services while the aircraft is out of service;
(ii) the sale and marketing of air transport services;
(iii) computer reservation system (CRS) services; and
(iv) specialized air services;
(c) public procurement;
(d) services provided in the exercise of governmental authority such as, but not limited to, law enforcement, social rehabilitation services, income security or insurance, social security services, social welfare, public education, public training, public health and child care or child protection; and
(e) subsidies or grants provided by a Party or a State enterprise, including government-backed loans, guarantees or insurance.
3. This Chapter does not impose any obligation on a Party with respect to a national of the other Party seeking to enter its labor market or to have permanent employment in its territory, or to confer any rights on that national with respect to such access or employment, nor shall it apply to measures relating to citizenship or residence on a permanent basis.
4. Articles 9.4, 9.8, and 9.12 shall apply to measures of a Party affecting the supply of a service in its territory by a covered investment, as defined in Article 10.1 (Definitions).(4)
5. Nothing in this Chapter shall be construed to prevent a Party from applying immigration measures, including measures necessary to protect the integrity of its borders and to ensure the orderly movement of persons across its borders. (5)
Article Article 9.3: Most-Favored-Nation Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that it accords, in like circumstances, to services and service suppliers of a non-Party.
2. Nothing in this Chapter shall be construed to prevent a Party from conferring advantages on adjacent States for the purpose of facilitating trade, limited to contiguous border areas, in services that are produced or consumed locally.
Article Article 9.4: Market Access
No Party shall adopt or maintain measures that:
(a) impose limitations on:
(i) the number of service suppliers, whether in the form of numerical quotas, monopolies or exclusive service suppliers or by requiring an economic needs test;
(ii) the total value of assets or service transactions in the form of numerical quotas or through the requirement of an economic needs test;
(iii) the total number of service transactions or the total amount of service output, expressed in designated numerical units, in the form of quotas or through the requirement of an economic needs test (6);
(iv) the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ that are necessary for, and directly related to, the supply of a specific service, in the form of numerical quotas or by requiring an economic needs test; or
(b) restrict or prescribe the specific types of legal entity or joint venture through which a service supplier may supply a service.
Article 9.5. National Treatment
Each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that it accords, in like circumstances, to its own services and service suppliers.
Article 9.6. Local Presence
No Party may require a service supplier of the other Party to establish or maintain a representative office or other form of business, or to reside in its territory, as a condition for the cross-border supply of a service.
Article 9.7. Nonconforming Measures
1. Articles 9.3, 9.4, 9.5, and 9.6 do not apply to:
(a) any existing non-conforming measure that is maintained by a Party in:
(i) the government at the central level, as set out by that Party in its Schedule to Annex I;
(ii) the government at the regional level, as set out by that Party in its Schedule to Annex I; or
(iii) a local level government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a), or
(c) the modification of any non-conforming measure referred to in subparagraph (a), provided that such modification does not diminish the conformity of the measure with Articles 9.3, 9.4, 9.5 and 9.6 as in effect immediately before the modification.
2. Articles 9.3, 9.4, 9.5, and 9.6 do not apply to any measure that a Party adopts or maintains in relation to sectors, sub-sectors, or activities as set out in its Schedule to Annex II.
Article 9.8. Domestic Regulation
1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective, and impartial manner.
2. Where a Party requires authorization for the supply of a service, the competent authorities of that Party shall:
(a) within a reasonable time after the submission of an application that is considered complete under its laws and regulations, inform the applicant of the decision regarding the applicant's application;
(b) upon request of the applicant, provide, without undue delay, information concerning the status of the application;
3. In order to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, each Party shall endeavor to ensure that such measures:
(a) are based on objective and transparent criteria, such as competition and the ability to supply the service;
(b) are no 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 supply of the service.
4. The Parties recognize their mutual obligations relating to domestic regulation set out in Article VI:4 of the GATS and affirm their commitment to the development of any necessary disciplines thereunder. To the extent that any such disciplines are adopted by WTO Members, the Parties shall jointly review them, as appropriate, with a view to determining whether such results should be incorporated into this Agreement.
5. This Article shall not apply to non-conforming aspects of measures adopted or maintained by a Party pursuant to its Schedules to Annexes I and II.
Article 9.9. Recognition
1. For purposes of complying, in whole or in part, with its standards or criteria for the authorization or certification of, or the licensing of service suppliers, and subject to the requirements of paragraph 4, a Party may recognize education or experience obtained, requirements met, or licenses or certificates granted in a particular country. Such recognition, which may be effected through harmonization or otherwise, may be based on an agreement or arrangement with the country concerned or may be granted autonomously.
2. Where a Party recognizes, autonomously or by agreement or arrangement, education or experience obtained, qualifications completed, or licenses or certificates granted in the territory of a non-Party, nothing in Article 9.3 shall be construed to require the Party to grant such recognition to education or experience obtained, qualifications completed, or licenses or certificates granted in the territory of the other Party.
3. A Party that is a party to an existing or future agreement or arrangement of the type referred to in paragraph 1 shall provide adequate opportunities for the other Party, if the other Party is interested, to negotiate its accession to such agreement or arrangement or to negotiate comparable agreements or arrangements with the other Party. Where a Party grants recognition autonomously, it shall provide adequate opportunities for the other Party to demonstrate that education, experience, licenses or certificates obtained or requirements fulfilled in the territory of that other Party should be subject to recognition.
4. No Party shall grant recognition in a manner that constitutes a means of discrimination between countries in the application of its standards or criteria for the authorization or certification of, or the licensing of service suppliers, or a disguised restriction on trade in services.
5. Annex 9.9 shall apply to measures adopted or maintained by a Party relating to the licensing or certification of professional service suppliers, as set out in the provisions of that Annex.
Article 9.10. Denial of Benefits
Subject to prior notification in accordance with Article 16.4 (Notification, Provision of Information, and Confidentiality), a Party may deny the benefits of this Chapter to a service supplier of the other Party if the service supplier is an enterprise owned or controlled by a person of a non-Party or of the denying Party, and that does not have substantial business activities in the territory of the other Party.
Article 9.11. Transfers and Payments
1. Each Party shall permit all transfers and payments relating to the cross-border supply of services to be made freely and without delay into and out of its territory.
2. Each Party shall permit all transfers and payments related to the cross-border supply of services to be made in freely usable currency at the market rate of exchange prevailing on the date of the transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay the completion of the transfer or payment by the equitable, non-discriminatory and good faith application of its domestic law with respect to:
(a) bankruptcy, insolvency or protection of creditors' rights;
(b) issuance, trading or dealing in securities, futures, options or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal violations; or
(e) ensuring compliance with judicial or administrative orders or judgments.
Article 9.12. Transparency
1. Each Party shall establish or maintain appropriate mechanisms to respond to inquiries from interested persons concerning its regulations relating to matters covered by this Chapter, in accordance with its laws and regulations on transparency. (7)
2. At the time of adopting final regulations relating to the subject matter of this Chapter, each Party shall respond in writing, to the extent practicable, upon request, to substantive comments received from interested persons with respect to the draft regulations.
3. To the extent possible, each Party shall allow a reasonable period of time between the publication of final regulations and the date on which they become effective.
4. In the event that a Party makes an amendment to any existing non-conforming measure as set out in its Schedule to Annex I pursuant to Article 9.7(1)(c), the Party shall notify the other Party, as soon as practicable, of such amendment.
5. In the event that a Party adopts any measure after entry into force of this Agreement with respect to sectors, subsectors, or activities as set out in its Schedule to Annex II, the Party shall, to the extent possible, notify the other Party of such measure.
Article 9.13. Subsidies
The Parties recognize their mutual obligations relating to subsidies in Article XV of the GATS and affirm their commitment to the development of any necessary disciplines under that Article. To the extent that any such disciplines are adopted by WTO Members or developed in another multilateral forum in which the Parties participate, the Parties shall jointly review them, as appropriate, with a view to determining whether such results should be incorporated into this Agreement.
Article 9.14. Complementary Services
Through their promotion agencies, the Parties shall endeavor to publish, update and exchange available information on their service suppliers that they consider relevant, in particular services provided to businesses, with the objective of promoting the formation of value chains in the business sector. The foregoing, without prejudice to the protection of confidential information, in accordance with the national legislation of each Party.
Article 9.15. Trade In Services Statistics
The Parties shall endeavor to encourage their competent authorities to work jointly to exchange information on trade in services, as well as to share methodologies and publish statistics on international trade in services, based on international standards.
Annex 9.9. PROFESSIONAL SERVICES
Development Standards and Criteria for the Supply of Professional Services
1. Each Party shall encourage the relevant bodies in its respective territory to develop mutually acceptable standards and criteria for the licensing and certification of professional service suppliers, as well as to submit recommendations to the Commission on their mutual recognition.
2. The standards and criteria referred to in paragraph 1 may be developed in relation to the following:
(a) education: accreditation of educational institutions or academic programs;
(b) examinations: qualifying examinations for licensing, including alternative methods of evaluation, such as oral examinations and interviews;
(c) experience: length and nature of experience required to obtain a license;
(d) conduct and ethics: standards of professional conduct and the nature of disciplinary action in the event that professional service providers contravene them;
(e) professional development and recertification: continuing education and the corresponding requirements for maintaining professional certification;
(f) scope of practice: extent and limits of authorized activities;
(g) local knowledge: requirements regarding knowledge of such things as laws and regulations, language, geography, or local climate; and
(h) consumer protection: alternative requirements to residency, such as bonding, professional liability insurance and client reimbursement funds to ensure consumer protection.