(i) have the right to be heard prior to a decision of the review body being made on the challenge,
(ii) have the right to be represented and accompanied,
(iii) have access to all challenge proceedings, and
(iv) have the right to request that the proceedings take place in public and that witnesses may be presented; and
(c) decisions or recommendations relating to challenges shall be provided, in a timely fashion, in writing, with an explanation of the basis for each decision or recommendation.
4. Each supplier shall be allowed a sufficient period of time to prepare and submit a challenge, which in no case shall be less than 10 days from the time when the basis of the challenge became known to the supplier or reasonably should have become known to the supplier.
5. Each Party shall provide that an authority it establishes or designates under paragraph 2 has authority to take interim measures to preserve the supplier's opportunity to participate in the procurement. Such interim measures may result in suspension of the procurement process. The procedures for taking interim measures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account when deciding whether such measures should be applied.
6. Each Party shall ensure that a supplier's submission of a challenge will not prejudice the supplier's participation in ongoing or future procurements.
7. Where a body other than an authority referred to in paragraph 2 initially reviews a challenge, the Party shall ensure that the supplier may appeal the initial decision to an impartial administrative or judicial authority that is independent of the procuring entity whose procurement is the subject of the challenge.
Article 1413. Modifications and Rectifications to Coverage
1. Where a Party modifies its coverage of procurement under this Chapter, the Party shall:
(a) notify the other Party in writing; and
(b) include in the notification a proposal of appropriate compensatory adjustments to the other Party to maintain a level of coverage comparable to that existing prior to the modification.
2. Notwithstanding subparagraph 1(b), a Party need not provide compensatory adjustments where:
(a) the modification in question is a minor amendment or rectification of a purely formal nature; or
(b) the proposed modification covers an entity over which the Party has effectively eliminated its control or influence.
3. If the other Party does not agree that: (a) an adjustment proposed under subparagraph 1(b) is adequate to maintain a comparable level of mutually agreed coverage;
(b) the proposed modification is a minor amendment or a rectification under subparagraph 2(a); or
(c) the proposed modification covers an entity over which the Party has effectively eliminated its control or influence under subparagraph 2(b), it must object in writing within 30 days of receipt of the notification referred to in paragraph 1 or be deemed to have agreed to the adjustment or proposed modification, including for the purposes of Chapter Twenty-One (Dispute Settlement).
4. Where the Parties are in agreement on the proposed modification, rectification, or minor amendment, including where a Party has not objected within 30 days under paragraph 3, they shall give effect to the agreement by modifying forthwith the relevant Annex.
Article 1414. Committee on Procurement
The Parties hereby establish a Committee on Procurement to address matters related to the implementation of this chapter with a view to maximizing access to government procurement.
Article 1415. Further Negotiations
1. If, after the entry into force of the provisions of this Chapter, either Party enters into another international agreement that contains different procurement procedures and practices, including the introduction of shorter bid periods, on the request of either Party, the Parties shall enter into negotiations with a view to harmonizing this Chapter with the new international agreement.
2. If, after the entry into force of the provisions of this Chapter, either Party enters into another international agreement that provides greater access to its procurement market than is provided under this Chapter, including with respect to sub-federal government procurement, on the request of either Party, the Parties may agree to enter into negotiations with a view to achieving an equivalent level of market access under this Chapter as is contained in the other international agreement.
Article 1416. Information Technology
The Parties shall, to the extent possible, endeavour to use electronic means of communication to permit efficient dissemination of information on government procurement, particularly as regards tender opportunities offered by procuring entities, while respecting the principles of transparency and non-discrimination.
Article 1417. Definitions
For purposes of this Chapter:
commercial goods and services means goods or services of a type generally sold or offered for sale in the commercial marketplace to, and customarily purchased by, non-governmental buyers for non-governmental purposes; conditions for participation means any registration, qualification or other prerequisites for participation in a procurement;
construction services means a contractual arrangement for the realization by any means of civil or building works, whether paid for directly by the Party or through, for a specified period of time, any grant to the supplier of temporary ownership or a right to control and operate, and demand payment for the use of such works, for the duration of the contract;
in writing or written means any worded or numbered expression that can be read, reproduced, and later communicated. It may include electronically transmitted and stored information;
limited tendering means a procurement method where the procuring entity contacts a supplier or suppliers of its choice;
multi-use list means a list of suppliers that a procuring entity has determined satisfy the conditions for participation in that list, and that the procuring entity intends to use more than once;
notice of intended procurement means a notice published by a procuring entity inviting interested suppliers to submit a request for participation, a tender, or both;
offsets means any condition or undertaking that encourages local development or improves a Party's balance-of-payments accounts, such as the use of domestic content, the licensing of technology, investment, counter-trade and similar actions or requirements;
open tendering means a procurement method where all interested suppliers may submit a tender;
procurement means the process by which a government obtains the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale, or use in the production or supply of goods or services for commercial sale or resale;
procuring entity means an entity listed in Annex 1401.1-1 or 1401.1-2;
selective tendering means a procurement method where only suppliers satisfying the conditions for participation are invited by the procuring entity to submit a tender; services includes construction services, unless otherwise specified;
supplier means a person or group of persons that provides or could provide goods or services to a procuring entity;
standard means a document approved by a recognized body, that provides, for common and repeated use, rules, guidelines, or characteristics for goods or services, or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking, or labelling requirements as they apply to a good, service, process, or production method; and
technical specification means a tendering requirement that:
(i) lays down the characteristics of goods or services to be procured, including quality, performance, safety and dimensions, or the processes and methods for their production or provision, or
(ii) addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service.
Chapter Fifteen. Electronic Commerce
Article 1501. Scope and Coverage
1. The Parties confirm that this Agreement, including Chapter Nine (Cross-Border Trade in Services), Chapter Two (National Treatment and Market Access for Goods, Chapter Eight (Investment), Chapter Fourteen (Government Procurement), Chapter Eleven (Financial Services), Chapter Ten (Telecommunications), and Chapter Twenty-Two (Exceptions) applies to trade conducted by electronic means. (1) In particular, the Parties recognize the importance of the access and use provisions of Chapter Ten (Telecommunications) in enabling trade conducted by electronic means.
2. Nothing in this Chapter imposes obligations on a Party to allow products to be delivered electronically, except in accordance with the obligations of that Party in other Chapters of this Agreement.
Article 1502. General Provisions
1. The Parties recognize the economic growth and opportunities provided by electronic commerce and the applicability of WTO rules to electronic commerce.
2. Considering the potential of electronic commerce as a social and economic development tool, the Parties recognize the importance of:
(a) clarity, transparency and predictability in their domestic regulatory frameworks in facilitating, to the maximum extent possible, the development of electronic commerce;
(b) interoperability, innovation and competition in facilitating electronic commerce;
(c) ensuring that global and domestic electronic commerce policy takes into account the interest of all stakeholders, including business, consumers, non-government organizations and relevant public institutions; and
(d) facilitating the use of electronic commerce of micro, small and medium sized enterprises.
3. Each Party shall endeavour to adopt measures to facilitate trade conducted by electronic means by addressing issues relevant to the electronic environment.
4. The Parties recognize the importance of avoiding unnecessary barriers to trade conducted by electronic means. Having regard to its national policy objectives, each Party shall endeavour to guard against measures that:
(a) unduly hinder trade conducted by electronic means; or,
(b) have the effect of treating trade conducted by electronic means more restrictively than trade conducted by other means.
Article 1503. Customs Duties
1. Neither Party may apply customs duties, fees, or charges on or in connection with the importation or exportation of digital products by electronic means.
2. For greater clarity, this Article does not preclude either Party from imposing internal taxes or other internal charges on digital products delivered electronically, provided that such taxes or charges are imposed in a manner that is not inconsistent with this Agreement.
Article 1504. Transparency
Pursuant to Article 1901 (Transparency - Publication), each Party shall promptly publish or otherwise make publicly available its laws, regulations, procedures and administrative rulings of general application, that pertain to electronic commerce.
Article 1505. Consumer Protection
1. The Parties recognize the importance of maintaining and adopting transparent and effective measures to protect consumers from fraudulent and deceptive commercial practices in electronic commerce.
2. To this end, the Parties should exchange information and experiences on national approaches for the protection of consumers engaging in electronic commerce.
Article 1506. Paperless Trade Administration
1. Each Party shall endeavour to make trade administration documents available to the public in electronic form.
2. Each Party shall endeavour to accept trade administration documents submitted electronically as the legal equivalent of the paper version of such documents.
Article 1507. Protection of Personal Information
1. The Parties recognize the importance of the protection of personal information in the on-line environment.
2. To this end, each Party should:
(a) adopt or maintain legal, regulatory and administrative measures for the protection of personal information of users engaged in electronic commerce; and
(b) exchange information and experiences regarding their domestic regimes on the protection of personal information.
Article 1508. Cooperation
Recognizing the global nature of electronic commerce, the Parties affirm the importance of:
(a) working together to facilitate the use of electronic commerce of micro, small and medium sized enterprises;
(b) sharing information and experiences on laws, regulations, and programs in the sphere of electronic commerce, including those related to data privacy, consumer confidence, security in electronic communications, authentication, intellectual property rights, and electronic government;
(c) working to maintain cross-border flows of information as an essential element in fostering a vibrant environment for electronic commerce;
(d) fostering electronic commerce through the encouragement of the private sector to adopt codes of conduct, model contracts, guidelines, and enforcement mechanisms; and
(e) actively participating in regional and multilateral fora to promote the development of electronic commerce.
Article 1509. Relation to other Chapters
In the event of an inconsistency between this Chapter and another Chapter, the other Chapter shall prevail to the extent of the inconsistency.
Article 1510. Definitions
For purposes of this Chapter:
authentication means the process or act of establishing the identity of a party to an electronic communication or transaction or ensuring the integrity of an electronic communication;
delivered electronically means delivered through telecommunications, alone or in conjunction with other information and communication technologies;
digital products means computer programs, text, video, images, sound recordings and other products that are digitally encoded; personal information means any information relating to an identified or identifiable natural person;
telecommunications means "telecommunications" as defined in Article 1014 (Telecommunications - Definitions);
trade administration documents means forms that a Party issues or controls that must be completed by or for an importer or exporter in connection with the import or export of goods; and
trade conducted by electronic means means trade conducted through telecommunications, alone or in conjunction with other information and communication technologies.
Chapter Sixteen. Labour
Article 1601. Affirmations
The Parties affirm their obligations as members of the International Labour Organization (ILO) and their commitments to the ILO Declaration on Fundamental Principles and Rights at Work (1998) and its Follow-Up as well as their continuing respect for each other's Constitution and laws.
Article 1602. Objectives
The Parties wish to build on their respective international commitments, strengthen their cooperation on labour and in particular:
(a) improve working conditions and living standards in each Party's territory;
(b) promote their commitment to the internationally recognized labour principles and rights;
(c) promote compliance with and effective enforcement by each Party of its labour laws;
(d) promote social dialogue on labour matters among workers and employers, their respective workers' and employers' organizations, and governments;
(e) pursue cooperative labour-related activities on the basis of mutual benefit;
(f) strengthen the capacity of the ministries responsible for labour affairs and other institutions responsible for administering and enforcing labour laws in their territories; and
(g) foster full and open exchange of information between such ministries and institutions in regard to labour laws and its application in each Party's territory.
Article 1603. Obligations
In order to further the foregoing objectives, the Parties' mutual obligations are set out in the Labour Cooperation Agreement between Canada and the Republic of Peru (LCA) that addresses, inter alia:
(a) general obligations concerning the internationally recognized labour principles and rights that are to be embodied in each Party's labour laws;
(b) derogation from domestic labour laws in order to encourage trade or investment;
(c) effective enforcement of labour laws through appropriate government action, private rights of action, procedural guarantees, public information and awareness;
(d) institutional mechanisms to oversee the implementation of the LCA, such as a Ministerial Council and National Administration Offices to receive and review public communications on specified labour law matters and to enable cooperative activities to further the objectives of the LCA;
(e) general and ministerial consultations regarding the implementation of the LCA and its obligations; and
(f) independent review panels to hold hearings and make determinations regarding alleged non-compliance with the terms of the LCA and, if requested, monetary assessments.
Chapter Seventeen. Environment
Article 1701. Affirmations
1. The Parties recognize that each Party has sovereign rights and responsibilities to conserve and protect its environment, and affirm their environmental obligations under their domestic law, as well as their international obligations under multilateral environmental agreements.
2. The Parties recognize the mutual supportiveness between trade and environment policies and the need to implement this Agreement in a manner consistent with environmental protection and conservation and the sustainable use of their resources.
Article 1702. Agreement on the Environment
In furtherance of Article 1701, the Parties have set out their mutual obligations in an Agreement on the Environment that addresses, inter alia:
(a) conservation, protection and improvement of the environment in the territory of each Party for the well-being of present and future generations;
(b) derogation from domestic environmental laws in order to encourage trade or investment;
(c) conservation and sustainable use of biological diversity and protection and preservation of traditional knowledge;
(d) development of, compliance with and enforcement of environmental laws;
(e) transparency and public participation on environmental matters; and
(f) cooperation between the Parties on the advancement of environmental issues of common interest.
Article 1703. Relationship between this Agreement and the Agreement on the Environment
1. The Parties recognize the importance of balancing trade obligations and environmental obligations, affirm that the Agreement on the Environment complements this Agreement and that the two are mutually supportive.
2. The Commission shall consider, as appropriate, reports and recommendations from the Committee on the Environment established under the Agreement on Environment, in respect of any issues related to trade and the environment.
Chapter Eighteen. Trade-related Cooperation
Article 1801. Objectives
1. Recognizing that trade-related cooperation is a catalyst for the reforms and investments necessary to foster trade-driven economic growth and adjustment to liberalized trade, the Parties agree to promote trade-related cooperation pursuant to the following objectives:
(a) to strengthen the capacities of the Parties to maximize the opportunities and benefits deriving from this Agreement;
(b) to strengthen and develop cooperation at a bilateral, regional or multilateral level;
(c) to foster new opportunities for trade and investment, stimulating competitiveness and encouraging innovation, including dialogue and cooperation among their respective academies of science, governmental organizations, non-governmental organizations, universities, colleges, as well as their science, research and technological centers and institutes, and private sector enterprises and firms in areas of mutual interest relating to science and technology and innovation; and
(d) to promote sustainable economic development, with an emphasis on small and medium sized enterprises, in order to contribute to the reduction of poverty through trade.
Article 1802. Committee on Trade-related Cooperation
1. Pursuant to Article 1801, the Parties hereby establish a Committee on Trade-Related Cooperation comprising representatives of each Party.
2. Each Party should provide, and periodically update, an Action Plan to the Committee describing proposed trade-related cooperation initiatives.
3. The Committee shall:
(a) seek the prioritization and promote the realization of trade-related cooperation initiatives outlined in the Action Plans of the Parties;
(b) invite appropriate international donor institutions, private sector entities and non-governmental organizations to assist in the development and implementation of trade-related cooperation initiatives in accordance with the priorities set out by the Committee pursuant to subparagraph 3(a);
(c) work with other committees or working groups established under this Agreement, including through joint meetings, to support the implementation of trade-related cooperation provisions outlined in the Agreement, in accordance with the priorities set out by the Committee pursuant to subparagraph 3(a);
(d) establish rules and procedures for the conduct of its work; all decisions of the Committee shall be taken by consensus, unless otherwise agreed;
(e) monitor and assess the progress in implementing trade related cooperation initiatives;
(f) provide an annual report to the Commission describing the activities of the Committee, unless otherwise agreed; and (g) meet annually, or as otherwise agreed by the Parties, in person or by any other technological means available.
4. The Committee may establish ad hoc working groups, which may comprise government and non-government representatives.
5. The implementation of trade-related cooperation initiatives is subject to the joint decision of the Parties.