(a) a domestic judicial, quasi-judicial, or administrative action pursued by the Party in a timely fashion and in accordance with its law. Such actions comprise: mediation; arbitration; the process of issuing a license, permit, or authorization; seeking an assurance of voluntary compliance or a compliance agreement; seeking sanctions or remedies in an administrative or judicial forum; and the process of issuing an administrative order; and
(b) an international dispute resolution proceeding to which the Party is a party.
Annex 17.9. Environmental Cooperation
1. The Parties recognize the importance of protecting, improving, and conserving the environment, including natural resources, in their territories. The Parties underscore the importance of promoting all possible forms of cooperation and reaffirm that cooperation on environmental matters provides enhanced opportunities to advance common commitments to achieve sustainable development for the well-being of present and future generations.
2. Recognizing the benefits that would be derived from a framework to facilitate effective cooperation, the Parties negotiated the ECA. The Parties expect that the ECA will enhance their cooperative relationship, noting the existence of differences in the Partiesâ respective natural endowments, climatic and geographical conditions, and economic, technological, and infrastructure capabilities.
3. As set forth in Article V of the ECA, the Parties have identified the following priorities for environmental cooperation activities:
(a) strengthening each Party's environmental management systems, including reinforcing institutional and legal frameworks and the capacity to develop, implement, administer, and enforce environmental laws, regulations, standards, and policies;
(b) developing and promoting incentives and other flexible and voluntary mechanisms in order to encourage environmental protection, including the development of market-based initiatives and economic incentives for environmental management;
(c) fostering partnerships to address current or emerging conservation and management issues, including personnel training and capacity building;
(d) conserving and managing shared, migratory, and endangered species in international trade and management of marine parks and other protected areas;
(e) exchanging information on domestic implementation of multilateral environmental agreements that all the Parties have ratified;
(f) promoting best practices leading to sustainable management of the environment;
(g) facilitating technology development and transfer and training to promote the use, proper operation, and maintenance of clean production technologies;
(h) developing and promoting environmentally beneficial goods and services;
(i) building capacity to promote public participation in the process of environmental decision-making;
(j) exchanging information and experiences between Parties wishing to perform environmental reviews, including reviews of trade agreements, at the national level; and
(k) other areas for environmental cooperation on which the Parties may agree.
4. Funding mechanisms for environmental cooperation activities under the ECA are addressed in Article VIII of the ECA.
Chapter Eighteen. Transparency
Section A. Transparency
Article 18.1. Contact Points
1. Each Party shall designate, within 60 days of the date of entry into force of this Agreement, a contact point to facilitate communications between the Parties on any matter covered by this Agreement.
2. On the request of another Party, the contact point shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.
Article 18.2. Publication
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and Parties to become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and Parties a reasonable opportunity to comment on such proposed measures.
Article 18.3. Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify any other Party with an interest in the matter of any proposed or actual measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect that other Partyâs interests under this Agreement.
2. On request of another Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, whether or not that other Party has been previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
Article 18.4. Administrative Proceedings
With a view to administering in a consistent, impartial, and reasonable manner all measures of general application affecting matters covered by this Agreement, each Party shall ensure that in its administrative proceedings applying measures referred to in Article 18.2 to particular persons, goods, or services of another Party in specific cases that:
(a) wherever possible, persons of another Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 18.5. Review and Appeal
1. Each Party shall establish or maintain judicial, quasi-judicial, or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action at issue.
Article 18.6. Definitions
For purposes of this Section:
administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good, or service of another Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Section B. Anti-Corruption
Article 18.7. Statement of Principle
The Parties affirm their resolve to eliminate bribery and corruption in international trade and investment.
Article 18.8. Anti-Corruption Measures
1. Each Party shall adopt or maintain the necessary legislative or other measures to establish that it is a criminal offense under its law, in matters affecting international trade or investment, for:
(a) a public official of that Party or a person who performs public functions for that Party intentionally to solicit or accept, directly or indirectly, any article of monetary value or other benefit, such as a favor, promise, or advantage, for himself or for another person, in exchange for any act or omission in the performance of his public functions;
(b) any person subject to the jurisdiction of that Party intentionally to offer or grant, directly or indirectly, to a public official of that Party or a person who performs public functions for that Party any article of monetary value or other benefit, such as a favor, promise, or advantage, for himself or for another person, in exchange for any act or omission in the performance of his public functions;
(c) any person subject to the jurisdiction of that Party intentionally to offer, promise, or give any undue pecuniary or other advantage, directly or indirectly, to a foreign official, for that official or for another person, in order that the official act or refrain from acting in relation to the performance of official duties, in order to obtain or retain business or other improper advantage in the conduct of international business; and
(d) any person subject to the jurisdiction of that Party to aid or abet, or to conspire in, the commission of any of the offenses described in subparagraphs (a) through (c).
2. Each Party shall adopt or maintain appropriate penalties and procedures to enforce the criminal measures that it adopts or maintains in conformity with paragraph 1.
3. In the event that, under the legal system of a Party, criminal responsibility is not applicable to enterprises, that Party shall ensure that enterprises shall be subject to effective, proportionate, and dissuasive non-criminal sanctions, including monetary sanctions, for any of the offenses described in paragraph 1.
4. Each Party shall endeavor to adopt or maintain appropriate measures to protect persons who, in good faith, report acts of bribery or corruption described in paragraph 1.
Article 18.9. Cooperation In International Fora
The Parties recognize the importance of regional and multilateral initiatives to eliminate bribery and corruption in international trade and investment. The Parties shall work jointly to encourage and support appropriate initiatives in relevant international fora.
Article 18.10. Definitions
For purposes of this Section:
act or refrain from acting in relation to the performance of official duties includes any use of the official's position, whether or not within the official's authorized competence;
foreign official means any person holding a legislative, administrative, or judicial office of a foreign country, at any level of government, whether appointed or elected; any person exercising a public function for a foreign country at any level of government, including for a public agency or public enterprise; and any official or agent of a public international organization;
public function means any temporary or permanent, paid or honorary activity, performed by a natural person in the name of a Party or in the service of a Party, such as procurement, at the central level of government; and
public official means any official or employee of a Party at the central level of government, whether appointed or elected.
Chapter Nineteen. Administration of the Agreement and Trade Capacity Building
Section A. Administration of the Agreement
Article 19.1. The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level representatives of the Parties, as set out in Annex 19.1, or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement;
(c) seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) supervise the work of all committees and working groups established under this Agreement; and
(e) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) modify in fulfillment of the Agreement's objectives:
(i) the Schedules attached to Annex 3.3 (Tariff Elimination), by accelerating tariff elimination;
(ii) the rules of origin established in Annex 4.1 (Specific Rules of Origin);
(iii) the Common Guidelines referenced in Article 4.21 (Common Guidelines); and
(iv) Annexes 9.1.2(b)(i), 9.1.2(b) Gi), and 9.1.2(b)(iii) (Government Procurement);
(c) issue interpretations of the provisions of this Agreement;
(d) seek the advice of non-governmental persons or groups; and
(e) take such other action in the exercise of its functions as the Parties may agree.
4. Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in subparagraph 3(b) within such period as the Parties may agree.
5. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by consensus, unless the Commission otherwise decides.
6. The Commission shall convene at least once a year in regular session, unless the Commission otherwise decides. Regular sessions of the Commission shall be chaired successively by each Party.
Article 19.2. Free Trade Agreement Coordinators
1. Each Party shall appoint a free trade agreement coordinator, as set out in Annex 19.2.
2. The coordinators shall work jointly to develop agendas and make other preparations for Commission meetings and shall follow-up on Commission decisions, as appropriate.
Article 19.3. Administration of Dispute Settlement Proceedings
1. Each Party shall:
(a) designate an office that shall provide administrative assistance to the panels established under Chapter Twenty (Dispute Settlement) and perform such other functions as the Commission may direct; and
(b) notify the Commission of the location of its designated office.
2. Each Party shall be responsible for:
(a) the operation and costs of its designated office; and
(b) the remuneration and payment of expenses of panelists and experts, as set out in Annex 19.3.
Section B. Trade Capacity Building
Article 19.4. Committee on Trade Capacity Building
1. Recognizing that trade capacity building assistance is a catalyst for the reforms and investments necessary to foster trade-driven economic growth, poverty reduction, and adjustment to liberalized trade, the Parties hereby establish a Committee on Trade Capacity Building, comprising representatives of each Party.
2. In furtherance of the Parties' ongoing trade capacity building efforts and in order to assist each Central American Party and the Dominican Republic to implement this Agreement and adjust to liberalized trade, each such Party should periodically update and provide to the Committee its national trade capacity building strategy.
3. The Committee shall:
(a) seek the prioritization of trade capacity building projects at the national or regional level, or both;
(b) invite appropriate international donor institutions, private sector entities, and non- governmental organizations to assist in the development and implementation of trade capacity building projects in accordance with the priorities set out in each national trade capacity building strategy;
(c) work with other committees or working groups established under this Agreement, including through joint meetings, in support of the development and implementation of trade capacity building projects in accordance with the priorities set out in each national trade capacity building strategy;
(d) monitor and assess progress in implementing trade capacity building projects; and
(e) provide a report annually to the Commission describing the Committeeâs activities, unless the Committee otherwise decides.
4. During the transition period, the Committee shall meet at least twice a year, unless the Committee otherwise decides.
5. The Committee may establish terms of reference for the conduct of its work.
6. The Committee may establish ad hoc working groups, which may comprise government or non-government representatives, or both.
7. All decisions of the Committee shall be taken by consensus, unless the Committee otherwise decides.
8. The Parties hereby establish an initial working group on customs administration and trade facilitation, which shall work under and report to the Committee.
Annex 19.1. The Free Trade Commission
The Free Trade Commission shall be composed of:
(a) in the case of Costa Rica, the Ministro de Comercio Exterior;
(b) in the case of the Dominican Republic, the Secretario de Estado de Industria y Comercio;
(c) in the case of El Salvador, the Ministro de Economia; in the case of Guatemala, the Ministro de Economia;
(d) in the case of Honduras, the Secretario de Estado en los Despachos de Industria y Comercio;
(e) in the case of Nicaragua, the Ministro de Fomento, Industria y Comercio; and
(f) in the case of the United States, the United States Trade Representative,
or their successors.
Annex 19.1.4. Implementation of Modifications Approved by the Commission
1. In the case of Costa Rica, decisions of the Commission under Article 19.1.3(b) will be equivalent to the instrument referred to in article 121.4, third paragraph (protocolo de menor rango) of the Constitucién Politica de la Republica de Costa Rica.
2. In the case of Honduras, decisions of the Commission under Article 19.1.3(b) will be equivalent to the instrument referred to in article 21 of the Constitución Politica de la República de Honduras.
Annex 19.2. Free Trade Agreement Coordinators
The free trade agreement coordinators shall consist of:
(a) in the case of Costa Rica, the Director General de Comercio Exterior;
(b) in the case of the Dominican Republic, the Subsecretario de Estado de Industria y Comercio Encargado de Comercio Exterior,
(c) in the case of El Salvador, the Director de la Dirección de Administración de Tratados Comerciales del Ministerio de Economía;
(d) in the case of Guatemala, the Director de Administración de Comercio Exterior del Ministerio de Economía;
(e) in the case of Honduras, the Director General de Política Comercial e Integración Económica de la Secretaria de Estado en los Despachos de Industria y Comercio;
(f) in the case of Nicaragua, the Director General de Comercio Exterior del Ministerio de Fomento, Industria y Comercio; and
(g) in the case of the United States, the Assistant United States Trade Representative for the Americas,
or their successors.
Annex 19.3. Remuneration and Payment of Expenses
1. The Commission shall establish the amounts of remuneration and expenses that will be paid to panelists and experts.
2. The remuneration of panelists and their assistants, experts, their travel and lodging expenses, and all general expenses of panels shall be borne equally by the disputing Parties.
3. Each panelist and expert shall keep a record and render a final account of the person's time and expenses, and the panel shall keep a record and render a final account of all general expenses.
Chapter Twenty. Dispute Settlement
Section A. Dispute Settlement
Article 20.1. Cooperation
The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
Article 20.2. Scope of Application
Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply:
(a) with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement;
(b) wherever a Party considers that an actual or proposed measure of another Party is or would be inconsistent with the obligations of this Agreement or that another Party has otherwise failed to carry out its obligations under this Agreement; and