Agreement on Climate Change, Trade and Sustainability (2024)
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(e) an ecolabel should be developed and implemented using fair and transparent processes. In the development of an ecolabel, relevant and appropriate information should be made available to stakeholders in an accessible manner without prejudice to relevant national legal requirements for protection of confidential information. Systems should be free from undue influence and where appropriate, a diverse and balanced range of interested stakeholders should have opportunities to participate in the process of developing and implementing an ecolabel;

(f) an ecolabel should follow a least trade restrictive approach and not create unnecessary barriers to trade;

(g) an ecolabel should not discriminate between goods or services on the basis of their origin;

(h) an ecolabel should be aligned with relevant international standards, recommendations or guidelines, support harmonisation of best practices and avoid duplication with international standards and international instruments;

(i) where relevant, ecolabel criteria and product category rules should take fitness for purpose and levels of performance into account;

(j) an ecolabel should seek to foster best practice and improvement over time in relation to environmental performance. Where relevant, ecolabel criteria and product category rules should be set with a pre- defined validity period and be reviewed before the end of that period;

(k) an ecolabel should take the most significant environmental impacts of the product’s life cycle into account. Where appropriate, ecolabels should be based on miulti-aspect and circular economy considerations;

(l) methodologies under an ecolabelling programme should aim to minimise compliance costs and complexity for businesses where possible and without negatively impacting environmental performance; and

(m) if an ecolabel requires third party verification or certification, such verification or certification should be performed by an independent accredited body and according to relevant and recognised international standards, guidelines and recommendations.

(17) For greater certainty, the Guidelines provided for in this Article are not legally binding.

Article 5.5. National Contact Points

1. Each Party shall designate a National Contact Point and notify It to the other Parties in writing within 90 days of the date of entry into force of this Agreement for that Party.

2. Each Party shall promptly notify the other Parties of any change to its designated National Contact Point.

3. National Contact Points shall meet on an annual basis, or as otherwise agreed by the Parties, through appropriate means, including electronic mail or videoconferencing.

4. The responsibilities of each National Contact Point shall include:

(a) making reasonable efforts to inform all interested stakeholders within the territory of its Party of the existence and availability of the National Contact Points;

(b) promoting awareness of the Guidelines and making them available by appropriate means, including through online information;

(c) as appropriate, cooperating with relevant stakeholders concerning their application of the Guidelines;

(d) responding to enquiries and requests about the Guidelines from other National Contact Points and other interested stakeholders operating within their Party's territory;

(e) cooperating with other National Contact Points, where appropriate, on matters related to the Guidelines, including sharing best practices and experiences;

(f) facilitating engagement between interested stakeholders and the relevant ecolabel operators; and

(g) reporting to the Joint Commmission or any subsidiary body that may be established to deal with ecolabelling, on their activities and responses to requests made under this Article.

5. While a National Contact Point is considering a request under paragraph 4, all matters relating to the request shall be kept confidential, in accordance with domestic laws, regulations and procedures of its Party. A National Contact Point shall make its response to any request received under paragraph 4 publicly available, where appropriate.

6. In considering requests made under paragraph 4, a National Contact Point may:

(a) seek advice from relevant authorities, business communities, non- governmental organisations, and experts;

(b) consult the National Contact Point of another Party; and (c) seek guidance from the Joint Commission.

Article 5.6. Cooperation

1. The Parties recognise the importance of cooperation as a mechanism to implement this Chapter and to enhance its objectives and benefits.

2. Cooperation may be undertaken through any means the Parties consider appropriate, including bilaterally or plurilaterally amongst the Parties. Where possible and appropriate, the Parties shall seek to complement their existing cooperation, including by voluntary peer evaluations, capacity building and training, and by taking into account relevant work of regional and international organisations.

3. All cooperative activities under this Chapter are subject to the availability of funds and of human and other resources, and to the applicable laws and regulations of the participating Parties.

Article 5.7. Consultations

1. Chapter 7 (Dispute Settlement) shall not apply to any matter arising under this Chapter.

2. Without prejudice to paragraph 1, a Party may request consultations with another Party to foster understanding or address specific matters or general practices under this Chapter. The other Party shall give sympathetic consideration to that request. If consultations are not taking place in the Joint Commission, it should be informed thereof.

Chapter 6. INSTITUTIONAL PROVISIONS

Article 6.1. Establishment of the Joint Commission

The Parties hereby establish a Joint Commission consisting of government representatives of each Party. Each Party shall be responsible for the composition of its delegation. (18)

(18) In the case of Costa Rica, Annex XI (Party-Specific Institutional Arrangements) shall apply.

Article 6.2. Functions of the Joint Commission

1.  The Joint Commission Shall:

(a) Monitor and Review the Implementation of this Agreement;

(b) oversee the general functioning and further development of this Agreement;

(c) undertake general reviews of this Agreement in accordance with Article 6.7 (General Review);

(d) consider ways of promoting accessions to the Agreement, and approve the terms of accession;

(e) consider any proposal by a Party or a subsidiary body to amend this Agreement;

(f) supervise the work of subsidiary bodies established under this Agreement; and

(g) consider any other matter that may affect the operation of this Agreement.

2. The Joint Commission may:

(a) in accordance with the Agreement's objectives, and subject to completion of any necessary legal requirements by each Party, adopt modifications to:

(i) Annexes I to V, and VII to XI, including their Appendices; (19) and

(ii) Annex VI.

(b) adopt interpretations of the provisions of this Agreement;

(c) submit to the Parties proposals to amend this Agreement;

(d) consider ways to further actions in the trade policy area to support this Agreement’s objectives;

(e) seek to resolve differences or disagreements that may arise regarding the interpretation or application of this Agreement, including on proposed measures or measures not yet in force;

(f) where appropriate, seek the advice of non-governmental persons or groups and international organisations on any matter falling within the Joint Commission's functions; and

(g) take such other action in the exercise of its functions as the Parties may agree.

3. The Joint Commission may establish, merge or dissolve subsidiary bodies. It may refer matters to any subsidiary body for advice, consider matters raised and adopt decisions proposed by subsidiary bodies. Except where otherwise provided for in this Agreement, the subsidiary bodies shall work under a mandate established by the Joint Commission.

(19) In the case of Costa Rica, Annex XI (Party-Specific Institutional Arrangements) shall apply.

Article 6.3. Meetings and Rules of Procedure of the Joint Commission

1. The Joint Commission shall meet within 18 months of the date of entry into force of this Agreement and then normally every two years, or as otherwise agreed by the Parties. Meetings of the Joint Commission shall be chaired successively by each Party or as otherwise agreed by the Parties.

2. A Party may request at any time, through written notice to the other Parties, that a special meeting of the Joint Commission be held. That meeting shall take place within 60 days of receipt of the request, unless the Parties agree otherwise. Upon request of a Party, the meeting shall take place in a format allowing for virtual participation.

3. The Party chairing a meeting of the Joint Commission shall provide any necessary administrative support for the meeting, and shall circulate to the other Parties the outcomes of the meeting.

4. The Joint Commission shall carry out its work through whatever means it considers appropriate, which may include electronic mail or videoconferencing.

5. The Joint Commission shall establish the rules of procedure for the conduct of its work at its first meeting or as otherwise agreed by the Parties.

Article 6.4. Decision-making of the Joint Commission

1. The Joint Commission shall take decisions as provided for in this Agreement, and make recommendations on any matter within its functions, by consensus. The Joint Commission shall be deemed to have taken a decision by consensus if no Party represented at the meeting when a decision is taken objects to the proposed decision.

2. In case the Joint Commission considers that an issue affects exclusively some Parties, it may adopt decisions or recommendations relating to that issue by consensus among those affected Parties only. Those decisions or recommendations shall only take effect for those affected Parties.

3. If a Party has accepted a decision of the Joint Commission subject to the fulfilment of domestic legal requirements, the decision shall enter into force on the date the last Party notifies the Depositary that its domestic legal requirements have been fulfilled, unless the decision itself specifies a later date. The Joint Commission may decide that the decision shall enter into force for those Parties that have fulfilled their domestic legal requirements.

4. If the domestic legislation of a Party so permits and if decided by the Joint Commission, that Party may apply a decision of the Joint Commission provisionally until that decision enters into force for that Party.

Article 6.5. Functioning of Subsidiary Bodies 

1. Each subsidiary Body shall act by consensus.

2. Meetings of each subsidiary body shall be chaired successively by a representative of each Party, unless the Parties agree otherwise.

3. Each subsidiary body shall report to the Joint Commission on the outcomes of each of its meetings.

4. Each subsidiary body shall organise and carry out its work as it sees fit and through whatever means it considers appropriate, including electronic mail or videoconferencing.

Article 6.6. Cooperation and Implementation of this Agreement

1. The Parties shall cooperate as appropriate and necessary in order to facilitate the implementation of this Agreement and to maximise the benefits arising from it, taking into consideration the Parties' respective needs and resources. The cooperative activities may include:

(a) information exchanges, dialogues or meetings;

(b) joint activities to promote this Agreement, including with the aim of increasing participation in this Agreement; and

(c) other activities as Parties may agree to.

2. The Parties may set out the details of cooperative activities in non-binding arrangements.

3. In relation to their cooperative activities, the Parties may take into consideration the work undertaken by relevant international organisations and may, where appropriate, coordinate efforts with them.

4. Any cooperative activities envisaged or undertaken under this Agreement shall be subject to the availability of resources and to the respective laws, regulations and policies of the Parties. Costs of cooperative activities shall be borne in such manner as may be determined between the Parties.

5. Each Party shall endeavour, in accordance with its laws, regulations and ptactices, to inform and, where appropriate, consult, or otherwise engage with, relevant stakeholder or partner communities, on the implementation of this Agreement. That engagement shall include representatives of Indigenous Peoples or any other relevant stakeholders as required by a Party's domestic or international obligations.

Article 6.7. General Review

1. The Joint Commission shall undertake a general review of the Agreement, in order to assess its general functioning and to develop the Agreement, within five years of its entry into force and thereafter as agreed by the Parties, but normally every five years. The intervals between general reviews shall not exceed seven years.

2. The conduct of general reviews shall normally coincide with regular meetings of the Joint Commission.

3. In conducting a general review pursuant to paragraph 1, the Joint Commission shall take into account, in particular:

(a) the work of all subsidiary bodies established under this Agreement;

(b) the experiences of the Parties in implementing the Agreement;

(c) progress achieved in expanding participation to this Agreement;

(d) input sought from relevant non-governmental persons, groups or communities;

(e) relevant developments in international fora; and

(f) other relevant developments such as the application of trade remedies on environmental goods covered by this Agreement.

4. As part of general reviews, the Joint Commission shall consider ways to further the Agreement's objectives, including through the launch of negotiations among the Parties with a view to adding to this Agreement additional trade rules and mechanisms that contribute to addressing climate change and other serious environmental challenges. For example, such topics may include non-tariff measures related to sustainability objectives.

5. Upon completion of a general review, the Joint Commission may submit to the Parties proposals to amend this Agreement or modify the Annexes to this Agreement, including their Appendices, pursuant to Article 6.2 (Functions of the Joint Commission).

Article 6.8. Contact Points

1. Each Party shall designate an overall contact point to facilitate communications between the Parties on any matter relating to this Agreement, as well as other contact points as required by this Agreement.

2. Except as otherwise provided in this Agreement, each Party shall notify the other Parties in writing of its designated contact points within 60 days of the date of entry into force of this Agreement for that Party. A Party shall notify its designated contact points to another Party for which this Agreement enters into force at a later date within 30 days of the date of entry into force of this Agreement for that other Party.

3. Each Party shall promptly notify the other Parties of any change to its designated contact point.

Article 6.9. Annex

Annex XI (Party-Specific Institutional Arrangements) forms an integral part of this Chapter.

Chapter 7. DISPUTE SETTLEMENT

Article 7.1. Objective

The objective of this Chapter is to provide an effective, efficient and transparent process for consultations and settlement of disputes among the Parties concerning their rights and obligations under this Agreement.

Article 7.2. Scope and Coverage

1. Unless otherwise provided in this Agreement, the provisions of this Chapter shall apply with respect to the avoidance or settlement of any disputes between the Parties concerning the interpretation or application of this Agreement.

2. Unless otherwise provided in this Agreement or agreed between the disputing parties, the settlement of disputes between the Parties under this Chapter shall be governed by the Rules of Procedure to be adopted by the Joint Commission at its first meeting (Rules of Procedure).

Article 7.3. Mutually Satisfactory Resolution

1. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt to arrive at a mutually satisfactory resolution of any matter raised under this Chapter.

2. The disputing parties shall inform the other Parties of any mutually agreed resolution of a matter raised under this Chapter.

Article 7.4. Choice of Forum

1. If a dispute regarding the same matter arises under this Agreement and under another international trade agreement to which the disputing parties are parties, the complaining Party may select the forum in which to settle the dispute.

2. Once a complaining Party has requested the establishment of, or referred a matter to, an arbitration panel or other tribunal under this Agreement, or another agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of other fora.

Article 7.5. Good Offices, Conciliation and Mediation

1. Parties are encouraged to, and may at any time agree to, voluntarily undertake an alternative method of dispute resolution, such as good offices, conciliation or mediation.

2. Proceedings that involve good offices, conciliation or mediation, including positions taken by the disputing parties during these proceedings, shall be confidential and without prejudice to the rights of any Party in any other proceedings.

3. A Party participating in proceedings under this Article may suspend or terminate those proceedings at any time.

4. If the disputing parties agree, good offices, conciliation or mediation may continue while the dispute proceeds for resolution before a panel established under Article 7.7 (Establishment of an Arbitration Panel).

Article 7.6. Consultations

1. A Party may request in writing consultations with another Party if it considers that a measure is inconsistent with this Agreement. The Party requesting consultations shall at the same time notify the other Parties in writing of the request. The Party to which the request is made shall reply no later than 10 days after receipt of the request.

2. Any request for consultations made pursuant to paragraph 1 shall give the reasons for the request, including identification of the measures at issue and an indication of the legal basis for the complaint.

3. A Party other than a disputing party that considers it has a substantial trade interest, or another substantial interest relevant under the Agreement, in the consultations shall be entitled, on delivery of a written notice to the disputing parties no later than seven days after the notification of the request for consultations, to participate in the consultations. The Party shall include in its notice an explanation of its substantial interest in the matter.

4. Consultations shall commence no later than 30 days after receipt of the request for consultations. Consultations on urgent matters shall commence no later than 15 days after receipt of the request for consultations.

5. Each disputing party shall provide sufficient information to enable a full examination of whether the measure is inconsistent with this Agreement and treat as confidential any information which has been designated as confidential by the Party submitting the information.

6. In consultations under this Article, a disputing party may request that another disputing party make available personnel of its government agencies or other regulatory bodies who have expertise in the matter at issue.

7. Consultations shall be confidential and without prejudice to the rights of any Party in any other proceedings.

8. Consultations may be held in person or by any technological means decided by mutual agreement of the disputing parties. If the consultations are held in person, they shall take place in a location decided by mutual agreement of the disputing parties, failing which, they shall be held in the capital of the Party to which the request for consultations was made.

Article 7.7. Establishment of an Arbitration Panel

1. A Party that requested consultations under paragraph 1 of Article 7.6 (Consultations) may request the establishment of an arbitration panel by means of a written request to the responding Party, if:

(a) the consultations fail to settle a dispute within 60 days, or 30 days in relation to urgent matters, of receipt of the request for consultations by the responding Party; or

(b) the Party to which the request is made does not reply within 10 days, or does not enter into consultations within 30 days, of receipt of the request for consultations, or within 15 days for urgent matters.

2. The Party requesting the establishment of an arbitration panel shall at the same time notify the other Parties in writing of the request.

3. The request for the establishment of an arbitration panel shall identify the specific measure at issue and provide a brief summary of the legal basis of the complaint.

4. The date of establishment of the arbitration panel shall be the date on which its chair is appointed.

5. Unless the disputing parties agree otherwise no later than 20 days after receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel shall be:

(a) to examine, in light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel;

(b) to make findings of law and fact, together with any reasons therefore, as provided for in this Chapter. The panel may make recommendations for the implementation of the ruling by the responding Party; and

(c) issue a report, in accordance with Article 7.15 (Arbitration Panel Reports).

6. Where more than one Party requests the establishment of an arbitration panel relating to the same matter, or where the request involves more than one responding Party and those responding Parties agree, a single arbitration panel should be established to examine complaints relating to the same matter, whenever feasible.

Article 7.8. Arbitration Panel Composition

1. The arbitration panel shall comprise three members. Each disputing party shall appoint one arbitrator and notify the other disputing party no later than 30 days after receipt of the request to establish an arbitration panel. The disputing parties shall agree on the appointment of the third arbitrator, who shall chair the arbitration panel, no later than 45 days after receipt of the request to establish an arbitration panel.

2. All arbitrators shall be chosen on the basis of their qualifications as provided in Article 7.9 (Qualifications of Arbitrators) as well as their objectivity, reliability and sound judgment.

3. In the appointment of arbitrators, the importance of achieving diversity shall be duly considered.

4. If all the arbitrators have not been appointed within 45 days of receipt of the request to establish an arbitration panel, a disputing party may request the Secretary- General of the Permanent Court of Arbitration (PCA) to make the necessary appointments within 30 days from the date the Secretary-General of the PCA receives that request.

5. In exercising its functions under this Agreement, the Secretary-General of the PCA may require from any disputing party and the arbitrators the information it deems necessary and it shall give the disputing parties and, where appropriate, the arbitrators, an opportunity to present their views in any manner it considers suitable.

Article 7.9. Qualifications of Arbitrators

1. All arbitrators shall:

(a) have relevant expertise or experience in one or more of the following areas: law, international trade, environmental matters, other matters covered by this Agreement or the resolution of disputes arising under international agreements; and

(b) be independent and impartial, including serving in their individual capacities and not be affiliated with, or take instructions from, any disputing party or third party or have dealt with the case in any capacity.

2. At least one arbitrator shall have relevant expertise or experience in environmental matters and at least one in international trade, unless the disputing parties agree such expertise or experience is not necessary in light of the scope of the dispute.

  • Chapter   1 INITIAL AND GENERAL PROVISIONS 1
  • Article   1.1 Objective 1
  • Article   1.2 Geographical Scope 1
  • Article   1.3 Definitions 1
  • Article   1.4 Relation to other International Agreements 1
  • Article   1.5 Most-Favoured-Nation Application 1
  • Article   1.6 Transparency 1
  • Article   1.7 Cooperation In International Fora 1
  • Article   1.8 Security Exceptions 1
  • Article   1.9 Restrictions to Safeguard the Balance of Payments 1
  • Article   1.10 Taxation 1
  • Article   1.11 Tiriti O Waitangi / Treaty of Waitangi 1
  • Chapter   2 TRADE IN ENVIRONMENTAL GOODS 1
  • Article   2.1 Objective 1
  • Article   2.2 Scope 1
  • Article   2.3 Environmental Goods 1
  • Article   2.4 Conservation and Sustainable Management Relevant for the Production of Environmental Goods 1
  • Article   2.5 Elimination of Import Duties 1
  • Article   2.6 Elimination of Export Duties 1
  • Article   2.7 Temporary Special Mechanism 1
  • Article   2.8 General Exceptions 1
  • Article   2.9 Sub-Committee on Trade In Environmental Goods 1
  • Article   2.10 Review 2
  • Article   2.11 Annexes 2
  • Chapter   3 TRADE IN ENVIRONMENTAL SERVICES 2
  • Article   3.1 Objective 2
  • Article   3.2 Scope 2
  • Article   3.3 Definitions 2
  • Article   3.4 Government Procurement 2
  • Article   3.5 Market Access 2
  • Article   3.6 National Treatment 2
  • Article   3.7 Additional Commitments 2
  • Article   3.8 Movement of Natural Persons 2
  • Article   3.9 Transparency 2
  • Article   3.10 Domestic Regulation 2
  • Article   3.11 Payments and Transfers 2
  • Article   3.12 General Exceptions 2
  • Article   3.13 Schedules of Specific Commitments 2
  • Article   3.14 Modification of Schedules 2
  • Article   3.15 Review 2
  • Article   3.16 Annexes 2
  • Chapter   4 FOSSIL FUEL SUBSIDIES 3
  • Article   4.1 Objective 3
  • Article   4.2 Scope 3
  • Article   4.3 Definitions 3
  • Article   4.4 SCRM Mechanism 3
  • Article   4.5 Prohibition and Scheduling of Fossil Fuel Subsidies 3
  • Article   4.6 Specific Exceptions 3
  • Article   4.7 General Cooperation 3
  • Article   4.8 Assistance for Capacity Building 3
  • Article   4.9 Transparency 3
  • Article   4.10 Review 3
  • Article   4.11 Annexes 3
  • Chapter   5 ECOLABELLING 3
  • Article   5.1 Objective 3
  • Article   5.2 Scope and Definitions 3
  • Article   5.3 General Principles 3
  • Article   5.4 Guidelines for Voluntary Ecolabelling Programmes 3
  • Article   5.5 National Contact Points 4
  • Article   5.6 Cooperation 4
  • Article   5.7 Consultations 4
  • Chapter   6 INSTITUTIONAL PROVISIONS 4
  • Article   6.1 Establishment of the Joint Commission 4
  • Article   6.2 Functions of the Joint Commission 4
  • Article   6.3 Meetings and Rules of Procedure of the Joint Commission 4
  • Article   6.4 Decision-making of the Joint Commission 4
  • Article   6.5 Functioning of Subsidiary Bodies  4
  • Article   6.6 Cooperation and Implementation of this Agreement 4
  • Article   6.7 General Review 4
  • Article   6.8 Contact Points 4
  • Article   6.9 Annex 4
  • Chapter   7 DISPUTE SETTLEMENT 4
  • Article   7.1 Objective 4
  • Article   7.2 Scope and Coverage 4
  • Article   7.3 Mutually Satisfactory Resolution 4
  • Article   7.4 Choice of Forum 4
  • Article   7.5 Good Offices, Conciliation and Mediation 4
  • Article   7.6 Consultations 4
  • Article   7.7 Establishment of an Arbitration Panel 4
  • Article   7.8 Arbitration Panel Composition 4
  • Article   7.9 Qualifications of Arbitrators 4
  • Article   7.10 Conduct, Challenge and Replacement of Arbitrators 5
  • Article   7.11 Third Party Participation 5
  • Article   7.12 Functions of the Arbitration Panel 5
  • Article   7.13 Procedures of the Arbitration Panel 5
  • Article   7.14 Right to Seek Information 5
  • Article   7.15 Arbitration Panel Reports 5
  • Article   7.16 Suspension or Termination of Arbitration Panel Proceedings 5
  • Article   7.17 Implementation of the Final Report 5
  • Article   7.18 Non-Implementation of the Final Report 5
  • Article   7.19 Time Periods 5
  • Article   7.20 Notifications and Contact Points 5
  • Chapter   8 FINAL PROVISIONS 5
  • Article   8.1 Fulfilment of Obligations 5
  • Article   8.2 Annexes, Appendices and Footnotes 5
  • Article   8.3 Entry Into Force 5
  • Article   8.4 Amended or Successor International Agreements 5
  • Article   8.5 Amendments 5
  • Article   8.6 Accession 5
  • Article   8.7 Withdrawal 5
  • Article   8.8 Depositary 5
  • Article   8.9 Authentic Texts 5
  • ANNEX III   REFERRED TO IN ARTICLE 3.3 (DEFINITIONS). ENVIRONMENTAL PURPOSES – TRADE IN ENVIRONMENTAL SERVICES 5
  • ANNEX IV   REFERRED TO IN ARTICLE 3.2 (SCOPE). LIST OF ENVIRONMENTAL AND ENVIRONMENTALLY RELATED SERVICES 5
  • ANNEX V   REFERRED TO IN ARTICLE 3.13 (ANNEXES). SCHEDULES OF SPECIFIC COMMITMENTS 19
  • ANNEX VI   REFERRED TO IN ARTICLE 3.16 (ANNEXES) FINANCIAL SERVICES 60