7. Korea shall provide for the enforcement of the monetary assessment in its territory
Chapter Nineteen. Transparency
Article 19.1. Publication
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application respecting a matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and the other Party 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 the other Party a reasonable opportunity to comment on such proposed measures.
Article 19.2. Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify the other Party of any actual or proposed measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect the other Party's interests under this Agreement.
2. At the request of the other Party, a Party shall promptly provide information and respond to questions pertaining to an actual or proposed measure, whether or not the other Party was previously notified of that measure.
3. Any notification or information provided pursuant to this Article is without prejudice as to whether the measure is consistent with this Agreement.
Article 19.3. 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 19.1 to particular persons, goods, or services of the other Party in specific cases:
(a) whenever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with that Party's 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 the issues in controversy;
(b) persons referred to in subparagraph (a) are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action when permitted by time, the nature of the proceeding, and the public interest; and
(c) its procedures are consistent with the Party's domestic law.
Article 19.4. 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, if warranted, correction of final administrative actions regarding matters covered by this Agreement. Each Party shall ensure that such tribunals are impartial and independent of the office or authority entrusted with administrative enforcement and do not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any tribunals or procedures referred to in paragraph 1, 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, if required by the Party's 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 the decisions referred to in paragraph 2(b) are implemented by, and govern the practice of, the offices or authorities with respect to the administrative action at issue.
Article 19.5. Cooperation on Promoting Increased Transparency
The Parties agree to cooperate in bilateral, regional, and multilateral fora on ways to promote transparency in respect of international trade and investment.
Article 19.6. Policy on Non-discriminatory Purchase and Use of Goods and Services
Each Party affirms that it is not its policy to discourage private persons in its territory from purchasing or using goods or services of the other Party.
Article 19.7. Definitions
For the purposes of this Chapter:
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 the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Chapter Twenty. Institutional Provisions and Administration
Article 20.1. Joint Commission
1. The Parties hereby establish a Joint Commission, composed of representatives of the Parties. The Commission shall be co-chaired by representatives of the Parties at the Ministerial level, or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) review the general functioning of this Agreement;
(c) supervise the further elaboration of this Agreement;
(d) consider ways to further enhance trade relations between the Parties;
(e) supervise the work of all committees, subcommittees, working groups, and other bodies established under this Agreement, including those listed in Annex 20-A;
(f) without prejudice to the rights conferred in Chapter Twenty-One (Dispute Settlement), endeavour to resolve disputes that may arise regarding the interpretation or application of this Agreement; and
(g) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) adopt interpretive decisions concerning this Agreement, which shall be binding on dispute settlement panels established under Article 21.6 (Establishment of a Panel) and on Tribunals established under Section B of Chapter Eight (Investor-State Dispute Settlement);
(b) seek the advice of non-governmental persons;
(c) take any other action in the exercise of its functions as the Parties may agree; and
(d) consider amendments or modifications to the rights and obligations under this Agreement, and amendments to Annex 1-A (Multilateral Environmental Agreements);
(e) establish the amounts of remuneration and expenses that will be paid to the dispute settlement panellists; and
(f) adopt its own rules of procedure.
4. The revisions referred to in paragraph 3(d) are subject to the completion of the necessary domestic legal procedures of either Party.
5. The Commission may establish committees, subcommittees, working groups or other bodies. Except as otherwise provided in this Agreement, the committees, subcommittees, working groups, and other bodies shall work under a mandate approved by the Commission.
6. Decisions and recommendations of the Commission shall be taken by mutual agreement.
7. The Commission shall convene once a year, or upon the request, in writing, of either Party. Unless otherwise agreed by the Parties, sessions of the Commission shall be held alternately in the territory of each Party, or by any technological means available.
8. Each Party shall treat confidential information exchanged in relation to a meeting of the Commission or a body established under this Agreement on the same basis as the Party providing the information.
Article 202. Agreement Coordinators
1. Each Party shall appoint an Agreement Coordinator (hereinafter referred to as the "Coordinator") and notify the other Party within 60 days following the entry into force of this Agreement.
2. The Coordinators shall:
(a) coordinate the work of all committees, subcommittees, working groups and other bodies established under this Agreement;
(b) recommend to the Commission the establishment of other committees, subcommittees, working groups and other bodies as they consider necessary to assist the Commission;
(c) follow up on any decisions taken by the Commission, as appropriate;
(d) receive notifications and information provided under this Agreement and, as necessary, facilitate communications between the Parties on a matter covered by this Agreement; and
(e) consider other matters that may affect the operation of this Agreement as mandated by the Commission.
3. The Coordinators shall meet as often as required.
4. Either Party may at any time request in writing that a special meeting of the Coordinators be held. The meeting shall take place within 30 days of receipt of the request.
Annex 20-A. Committees, Sub-Committees, Working Groups, and Other Bodies
1. The Committees established are:
(a) Committee on Trade in Goods;
(b) Rules of Origin and Customs Committee;
(c) Committee on Sanitary and Phytosanitary Measures;
(d) Committee on Standards-Related Measures;
(e) Committee on Trade Remedies;
(f) Financial Services Committee;
(g) Committee on Government Procurement;
(h) Committee on Intellectual Property; and
(i) Committee on Outward Processing Zones on the Korean Peninsula;
2. The Sub-Committees established are:
(a) Sub-Committee on Trade in Forest Products; and
(b) Sub-Committee on Trade in Automotive Goods;
3. The Working Group, which may be established on request of a Party, is:
Working Group on Standards-Related Measures related to Building Products and Related Assemblies;
4. Other Bodies established are:
(a) Environmental Affairs Council; and
(b) Labour Ministerial Council.
Annex 20-B. Committee on Outward Processing Zones on the Korean Peninsula
1. Recognising Korea’s constitutional mandate and security interests, and the corresponding interests of Canada, and both Parties’ commitment to promoting peace and prosperity on the Korean Peninsula, and the importance of intra-Korean economic cooperation toward that goal, the Parties hereby establish a Committee on Outward Processing Zones on the Korean Peninsula. The Committee shall review whether the conditions on the Korean Peninsula are appropriate for further economic development through the establishment and development of outward processing zones.
2. The Committee shall be composed of officials of the Parties. The Committee shall meet on or before the first anniversary of the entry into force of this Agreement and at least once annually thereafter, or at a time as mutually agreed.
3. The Committee shall identify geographic areas that may be designated outward processing zones. The Committee shall determine whether any such outward processing zone has met the criteria established by the Committee. The Committee shall also establish a maximum threshold for the value of the total input of the originating final good that may be added within the geographic area of the outward processing zone.
Chapter Twenty-One. Dispute Settlement
Section A. Dispute Settlement
Article 21.1. Cooperation
The Parties shall endeavour at all times 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 a matter that may affect its operation.
Article 21.2. Scope and Coverage
Except as otherwise provided in this Agreement, the dispute settlement provisions of this Section apply with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement or wherever a Party considers that:
(a) a measure of the other Party is inconsistent with its obligations under this Agreement;
(b) the other Party otherwise fails to carry out its obligations under this Agreement; or
(c) there is nullification or impairment in the sense of Annex 21-A.
Article 21.3. Choice of Forum
1. Subject to paragraph 2, disputes regarding a matter arising under both this Agreement and another trade agreement to which both Parties are party, including the WTO Agreement, may be settled in either forum at the discretion of the complaining Party.
2. Notwithstanding paragraph 1, if a Party complained against claims that its measures are subject to Article 1.3 (Relation to Multilateral Environmental Agreements) and requests in writing that the matter be considered under this Agreement, the complaining Party may, in respect of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement.
3. If the complaining Party requests the establishment of a dispute settlement panel under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of the other, unless the Party complained against makes a request pursuant to paragraph 2.
Article 21.4. Consultations
1. A Party may request in writing consultations with the other Party regarding a matter referred to in Article 21.2.
2. The Party requesting consultations shall deliver the request to the other Party and shall set out the reasons for the request, including the identification of the measure or other matter at issue and an indication of the legal basis for the complaint.
3. With respect to disputes relating to automotive goods, a Party may refer a matter referred to in Article 21.2 to the Sub-Committee on Trade in Automotive Goods established under Annex 2-C by delivering written notification to the other Party in accordance with the requirements set out in paragraph 2. This Sub-Committee shall endeavour to resolve the matter through consultations conducted in accordance with paragraphs 5, 6 and 7.
4. Subject to paragraph 5, the Parties shall enter into consultations within 30 days of the date of receipt of the request for consultations by the Party complained against, unless the Parties agree otherwise.
5. In cases of urgency, including those that concern perishable goods or motor vehicles, the Parties shall enter into consultations within 10 days of the date of receipt of the request for consultations by the Party complained against.
6. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of a matter through consultations under this Article. To this end, the Parties shall:
(a) provide sufficient information to enable a full examination of the measure or other matter at issue; and
(b) treat any confidential or proprietary information exchanged in the course of consultations on the same basis as the Party providing the information.
7. Consultations are confidential and without prejudice to the rights of the Parties in proceedings under this Chapter.
Article 21.5. Good Offices, Conciliation and Mediation
1. The Parties may agree to undertake alternative methods of dispute resolution, such as good offices, conciliation, or mediation.
2. Alternative methods of dispute resolution are conducted according to procedures agreed to by the Parties.
3. Unless the Parties agree otherwise, procedures established under this Article may begin at any time and be suspended or terminated at any time by either Party.
4. Proceedings involving good offices, conciliation, or mediation are confidential and without prejudice to the rights of the Parties in any other proceedings.
Article 21.6. Establishment of a Panel
1. Unless the Parties agree otherwise, if a matter referred to Article 21.2 is not resolved by recourse to consultations referred to Article 21.4 within:
(a) 35 days of the date of the receipt of the request for consultations; or
(b) 10 days of the date of the receipt of the request for consultations in cases of urgency, as referred to in Article 21.4.5;
the complaining Party may, through written notification to the Party complained against, refer the matter to a dispute settlement panel. The panel is established upon receipt by the Party complained against of the written notification of the complaining Party.
2. In its written notification of panel establishment, the complaining Party shall identify the specific measures or other matter at issue and provide a brief summary of the legal basis of the complaint sufficient to present the problem clearly.
Article 21.7. Panel Composition
1. In this Section, the "Receipt Date" means the date on which the written notification by one Party for the establishment of a panel referred to in Article 21.6.1 is received by the other Party.
2. The panel shall be composed of three members.
3. Within 30 days after the Receipt Date or 10 days in cases of motor vehicles, each Party shall appoint a panellist and propose up to four candidates, who are neither nationals of either Party nor have their usual place of residence in the territory of either Party, to serve as the chair of the panel (hereinafter referred to as "the chair").
4. Each Party shall notify the other Party in writing of its panel member appointment and its proposed candidates to serve as the chair. If a Party fails to appoint a panellist in accordance with this Article, the panellist shall be selected by lot from the candidates proposed by each Party to serve as the chair in accordance with paragraph 3.
5. Within 60 days after the Receipt Date or 15 days in cases of motor vehicles, the Parties shall endeavour to agree on and appoint the chair from among the candidates proposed. If the Parties are unable to agree on the chair within this time period, within an additional period of seven days, or within an additional period of four days in cases of motor vehicles, the chair shall be selected by lot from the candidates proposed by each Party in accordance with paragraph 3.
6. If a panellist appointed by a Party is unable to serve, withdraws or is removed, a replacement shall be appointed by that Party within 30 days, or within 10 days in cases of motor vehicles, failing which the replacement shall be appointed in accordance with paragraph 4. If the chair is unable to serve, withdraws or is removed, the Parties shall promptly agree on the appointment of a replacement, failing which the replacement shall be appointed by a selection by lot from among the remaining candidates previously proposed by each Party to serve as the chair in accordance with paragraph 3. If there are no remaining candidates, each Party shall propose up to three additional candidates satisfying the criteria set out in paragraph 3 and the chair shall be selected by lot from among them. In any such case, any time period applicable to the proceeding is suspended for a period beginning on the date the panellist or the chair is unable to serve, withdraws or is removed and ending on the date the replacement is selected.
7. Each panellist shall:
(a) have expertise or experience in international law, international trade, other matters covered by this Agreement, or in the settlement of disputes arising under international trade agreements;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
(c) be independent of, and not be affiliated with, or take instructions from either Party;
(d) not be employed by either Party; and
(e) comply with the Code of Conduct for Members of Panels set out in Annex 21-B.
8. If a Party believes that a panellist does not satisfy a qualification set out in paragraph 7 or has failed to comply with the Code of Conduct for Members of Panels set out in Annex 21-B, the Parties shall consult and, if they agree, the panellist shall be removed.
Article 21.8. Rules of Procedure
1. A panel established under this Chapter shall follow the Model Rules of Procedure set out in Annex 21-C. A panel may establish, in consultation with the Parties, supplementary rules of procedure that do not conflict with the provisions of this Chapter.
2. Unless the Parties agree otherwise, the rules of procedure of a panel shall ensure:
(a) that each Party has the opportunity to provide initial and rebuttal written submissions;
(b) subject to subparagraph (g), that a Party may make available to the public either Party's written submissions, written versions of its oral statements, and written responses to requests or questions from the panel at any time after such information is submitted to the panel;
(c) that each Party has the right to at least one hearing before the panel;
(d) subject to subparagraph (g), that hearings of the panel are open to the public;
(e) that the panel considers requests from non-governmental entities located in either Party's territory to provide written views regarding the dispute that may assist the panel in evaluating the submissions and arguments of the Parties;
(f) that all submissions and comments made to the panel are available to the other Party; and
(g) the protection of confidential information (1).
3. Unless the Parties agree otherwise, the terms of reference of the panel shall be:
"To examine, in the light of the relevant provisions of this Agreement, the matter referred to in the written notification of the panel establishment, and to make findings, determinations, and recommendations as provided in Article 21.9."
4. If a complaining Party wishes to argue that there is nullification or impairment of benefits in the sense of Annex 21-A, the terms of reference shall so indicate.
5. If a Party wishes the panel to make findings as to the degree of adverse effects of any measure determined to be inconsistent with the obligations of this Agreement or as to the degree of nullification or impairment in the sense of Annex 21-A, the terms of reference shall so indicate.
6. At the request of a Party, or on the panel's own initiative, the panel may seek information and technical advice from any person or body that it deems appropriate, provided that the Parties so agree and subject to any terms and conditions agreed to by the Parties.