(a) recognize their commitments to promote compliance and effective implementation of each Party’s environmental law;
(b) will strive to promote the conservation and sustainable use of biodiversity, and the preservation of traditional knowledge relevant to the conservation of biological diversity and the sustainable use of its components; and
(c) reaffirm their intention to strengthen cooperation on environmental matters.
Article 15.5. Enforcement of Environmental Laws and Regulations
1. A Party shall not fail to effectively enforce its environmental laws and regulations, through a sustained or recurring course of action or inaction, in a manner affecting trade or investment between the Parties.
2. The Parties recognize that it is inappropriate to encourage trade or investment by weakening or reducing the protections afforded in their environmental laws and regulations. Accordingly, neither Party shall waive or otherwise derogate from such laws and regulations in a manner that weakens or reduces the protections afforded in those laws and regulations.
3. The Parties agree that environmental laws and regulations shall not be used for trade protectionist purposes.
4. Nothing in this Chapter shall be construed to empower a Party’s authorities to undertake environmental law enforcement activities in the territory of the other Party.
Article 15.6. Multilateral Environmental Agreements
1. The Parties recognize that multilateral environmental agreements (hereinafter referred to as the “MEAs”) play an important role globally and domestically in protecting the environment. Accordingly, the Parties reaffirm their commitments to the effective implementation in their laws and practices of the MEAs to which both Parties are party.
2. The Parties agree to dialogue and cooperate, as appropriate, with respect to environmental issues of mutual interest related to MEAs to which they are parties, in particular on trade-related issues with a view to strengthening the cooperation between them.
Article 15.7. Review of Environmental Impact
The Parties shall endeavor to review the impact of the implementation of this Agreement on environment, at appropriate time after the entry into force of this Protocol, through their respective participative processes and institutions.
Article 15.8. Cooperation
1. Recognizing the importance of cooperation in the field of environment in achieving the goals of sustainable development, the Parties commit to building on the existing bilateral agreements and to further strengthening cooperative activities in areas of common interest, as appropriate, in particular trade related environmental issues in manners that the Parties deem appropriate.
2. The Parties hereby agree to promote cooperation activities on mutual interest.
3. The Parties shall endeavor to assure that cooperation activities:
(a) are consistent with the programs, strategies of development, and national priorities of each Party;
(b) would create opportunities for the public to take part in the development and implementation of such activities; and
(c) would take into consideration the economy, and the legal system of each Party.
Article 15.9. Institutional Arrangements
1. With a view to facilitating the implementation of this Chapter and the related communications, the following Contact Points are designated:
(a) for China, the Ministry of Commerce (MOFCOM) or its successor; and
(b) for Nicaragua, the Ministry of Development, Industry, and Trade (Ministerio de Fomento, Industria y Comercio (MIFIC)) or its successor.
2. A Party may, through the Contact Points referred to in paragraph 1, request consultations within the FTA Joint Commission regarding any matter arising under this Chapter. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the matter.
Article 15.10. Non-Application of Dispute Settlement
No Party shall have recourse to dispute settlement for any issue arising from or relating to this Chapter.
Chapter 16. SMALL AND MEDIUM ENTERPRISES
Article 16.1. Objectives
1. The Parties recognize that small and medium enterprises, including micro enterprises, contribute significantly to economic growth, employment, and innovation, and therefore seek to promote information sharing and cooperation in increasing the ability of small and medium enterprises to utilize and benefit from the opportunities created by this Agreement.
2. The Parties acknowledge the provisions of various Chapters in this Agreement that contribute to encouraging and facilitating the participation of small and medium enterprises in this Agreement.
Article 16.2. Information Sharing
1. Each Party shall promote the sharing of information related to this Agreement that is relevant to small and medium enterprises, including through the establishment and maintenance of its publicly accessible information platform, and information exchange to share knowledge, experiences, and best practices among the Parties.
2. Each Party shall take reasonable steps to ensure the information is accurate and up-to-date.
Article 16.3. Cooperation
The Parties shall strengthen their cooperation under this Chapter, which may include:
(a) encouraging small and medium enterprises (hereinafter referred to as the “SMEs”) service agencies of both countries to deepen cooperation in such areas as information exchange and business surveys, and build bridges of cooperation between SMEs of the two countries;
(b) encouraging SMEs to participate in trade fairs of the two countries;
(c) supporting the development of entrepreneurs and innovators;
(d) supporting the organization of investment forums to promote bilateral investment activities; and
(e) encouraging service providers to establish a one-stop service system to support the development of SMEs in both countries.
Article 16.4. Contact Points
Each Party shall designate a Contact Point to facilitate cooperation and information sharing under this Chapter. Each Party shall notify the other Party of any change to the details of those Contact Points.
Article 16.5. Non-Application of Dispute Settlement
No Party shall have recourse to dispute settlement for any issue arising from or relating to this Chapter.
Chapter 17. TRANSPARENCY
Article 17.1. Publication
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application that may affect any matter covered by this Agreement are promptly published, including through the internet where feasible, or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.
2. The Parties shall promptly respond through the Contact Point set out in Article 20.4 (Contact Point) to specific questions and provide, upon request, full information to each other on matters referred to in paragraph 1.
Article 17.2. ^Notification and Provision of Information
1. Each Party shall endeavour to notify the other Party the information on any measure that the Party considers might materially affect the operation of this Agreement.
2. The information referred to under this Article shall be considered to have been provided when it has been made available by appropriate notification to the WTO or when it has been made publicly available in accordance with the legislation of the Party concerned or has been published on the official, public and fee-free accessible website of the Party concerned.
3. Any notification, request, or information under this Article shall be conveyed to the other Party through Contact Point designated in Article 20.4 (Contact Point).
Article 17.3. Incorporation
For the purpose of this Agreement, Article X of GATT 1994 and Article III of GATS are incorporated into and form an integral part of this Agreement, mutatis mutandis.
Article 17.4. Definitions
For 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 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 18. ECONOMIC COOPERATION
Section A. General Provisions
Article 18.1. Objectives
1. The Parties agree to strengthen economic cooperation with the aim of enhancing the mutual benefits of this Agreement in accordance with their national strategies and policy objectives.
2. The cooperation under this Chapter shall pursue the following objectives:
(a) (a) promoting economic and social development of the Parties;
(b) (b) strengthening the capacities of the Parties to maximise opportunities and benefits derived from this Agreement;
(c) (c) stimulating productive synergies creating new opportunities for trade and investment and promoting competitiveness and innovation;
(d) (d) reinforcing collaboration and exchanges in areas of mutual interest;
(e) (e) supporting and promoting the development of micro, small and medium-sized enterprises (hereinafter referred to as the “MSMEs”) in order to achieve their insertion in international trade or global value chains; and
(f) (f) on the basis of fully respecting sovereignty and territorial integrity of all states, examining the opportunities of international cooperation through the Belt and Road Initiative and the implementation of the 2030 Agenda for Sustainable Development.
Article 18.2. Methods and Means
1. Cooperation between the Parties will be implemented through the tools, resources and mechanisms available to them, following the rules and procedures and through the appropriate agencies.
2. Cooperation between the Parties may be effected through separate exchange of diplomatic notes, memoranda of understanding, agreements or protocols or agreed frameworks to be concluded between authorised institutions or bodies in accordance with the laws and regulations in force in each Party.
Article 18.3. Scope
1. Cooperation between the Parties under this Chapter will supplement the cooperation and cooperative activities between the Parties set out in other Chapters of this Agreement.
2. The Parties affirm the importance of all forms of cooperation, including economic, technical and commercial cooperation, in contributing towards implementation of the objectives and principles of this Agreement taking into account their different levels of development and the size of their economies.
3. The areas of cooperation include, but are not limited to, those listed in Section B, and shall be subject to revision and update as may be decided after mutual consultation between the Parties with the objective of including other sectors or areas of interest.
Article 18.4. Non-Application of Dispute Settlement
No Party shall have recourse to dispute settlement for any issue arising from or relating to this Chapter.
Section B. Areas of Cooperation
Article 18.5. Agricultural Cooperation
1. Promote exchange of experience, establish partnerships and conduct project cooperation in areas of mutual interests, such as agricultural innovation and technology transfer for smallholder development, conservation and management of water resources for agriculture, promotion of advanced agricultural and agro-to-industrial technologies and digital agriculture.
2. Strengthen institutional capabilities of government agencies, research institutions, universities and businesses, in the areas of scientific investigation and transfer and validation of technologies including, among others, soil management and nutrition, irrigation and drainage, animal nutrition, horticulture under protected environments, traceability and safety.
3. Promote effective risk management in the agribusiness chains aiming to incorporate measures for adaptation and mitigation of climate change.
4. Encourage capacity building, technology transfer, and research and development of agricultural and livestock biotechnology and bio-safety.
5. Explore opportunities for cooperation in global food security through relevant regional and international forums.
Article 18.6. Other Areas of Cooperation
1. The Parties will promote the use of instruments and mechanisms of cooperation through mutually advantageous conditions, including but not limited to the following areas:
(a) micro, small and medium-sized enterprises;
(b) culture (including tourism and audiovisual services);
(c) promotion of a more favorable business environment;
(d) healthcare industry;
(e) textile and apparel;
(f) science and technology (including information technology and communication);
(g) transport, logistics and distribution;
(h) trade and sustainable development (including forestry and renewable energy);
(i) fisheries and aquaculture; and
(j) other areas agreed by the Parties.
2. The Parties shall endeavor to develop, promote and strengthen cooperation in the areas described in paragraph 1 as well as the activities or areas of cooperation established in other Chapters of this Agreement.
Article 18.7. Cooperation In the Law-Based Internet Governance
The Parties recognize the importance of and are committed to enhancing exchanges and cooperation in the law-based Internet governance.
Chapter 19. GENERAL PROVISIONS AND EXCEPTIONS
Article 19.1. Disclosure and Confidentiality of Information
1. Nothing in this Agreement shall require a Party to furnish or to allow access to confidential information, which is designated as confidential under its domestic law or the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
2. Except as otherwise provided in this Agreement, where a Party provides written information to the other Party in accordance with this Agreement and designates the information as confidential, the other Party shall maintain the confidentiality of the information. Such information shall be used only for the purposes specified, and shall not be otherwise disclosed without the specific permission of the Party providing the information, except where such use or disclosure is necessary to comply with legal or constitutional requirements or for the purpose of judicial proceedings.
Article 19.2. General Exceptions
1. For the purposes of Chapter 2 (Trade in Goods), Chapter 3 (Rules of Origin and Implementation Procedures), Chapter 4 (Customs Procedures and Trade Facilitation), Chapter 5 (Sanitary and Phytosanitary Measures), Chapter 6 (Technical Barriers to Trade), and the Annexes to the Chapters abovementioned, Article XX of GATT 1994, including its interpretative notes, is, incorporated into and form an integral part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XX (b) of GATT 1994 include environmental measures necessary to protect human, animal, or plant life or health, and that Article XX (g) of GATT 1994 applies to measures relating to the conservation of living and nonliving exhaustible natural resources, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in goods.
2. For the purposes of Chapter 8 (Cross-border Trade in Services), Chapter 9 (Financial Services), Chapter 10 (Temporary Entry for Business Persons), Chapter 11 (Investment) and Chapter 12 (Digital Economy) and its Annexes, Article XIV of GATS, including its footnotes, is incorporated into and form an integral part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XIV (b) of GATS include environmental measures necessary to protect human, animal, or plant life or health, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services and investment.
Article 19.3. Security Exceptions
Nothing in this Agreement shall be construed:
(a) to require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests; or
(b) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests:
(i) relating to fissionable and fusionable materials or the materials from which they are derived;
(ii) relating to the supply of services as carried out directly for the purpose of provisioning a military establishment;
(iii) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment;
(iv) taken in time of war or other emergency in international relations; or
(c) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter for maintenance of international peace and security.
Article 19.4. Taxation
1. For the purposes of this Article, the item “taxation measures” shall not include any customs or import duties.
2. Except as otherwise provided in this Article, nothing in this Agreement shall apply to taxation measures.
3. This Agreement shall only grant rights or impose obligations with respect to taxation measures where corresponding rights or obligations are also granted or imposed under the Article III of GATT 1994.
4. Notwithstanding paragraph 3, nothing in this Agreement shall:
(a) oblige a Party to apply any most-favoured-nation obligation in this Agreement with respect to an advantage accorded by a Party pursuant to any tax convention; (51)
(b) apply to:
(i) a non-conforming provision of any taxation measure that is maintained by a Party on the date of entry into force of this Agreement;
(ii) the continuation or prompt renewal of a non-conforming provision of any such taxation measure; or
(iii) an amendment to a non-conforming provision of any such taxation measure to the extent that the amendment does not decrease the conformity of the tax measure with the Agreement, as it existed before the amendment;
(c) prevent the adoption or enforcement by a Party of any taxation measure aimed at ensuring the equitable or effective imposition or collection of taxes; or
(d) prevent the adoption or enforcement by a Party of a provision that conditions the receipt, or continued receipt of an advantage relating to the contributions to, or income of, a pension trust, superannuation fund, or other arrangement to provide pension, superannuation, or similar benefits on a requirement that the Party maintain continuous jurisdiction, regulation, or supervision over such trust, fund, or other arrangement.
5. Nothing in this Agreement shall affect the rights and obligations of either Party under any tax convention. In the event of any inconsistency relating to a taxation measure between this Agreement and any such tax convention, the latter shall prevail to the extent of the inconsistency. With respect to tax convention between the Parties, any consultation about whether any inconsistency exists shall include the competent authorities of each Party under that tax convention.
Article 19.5. Review of Agreement
The Parties shall undertake a general review of the Agreement, with a view to furthering its objectives, within three years from the date of entry into force of this Agreement and at least every five years thereafter except as otherwise agreed by the Parties. The review shall include, but not be limited to, consideration of further liberalisation and expansion of market access.
Article 19.6. Measures to Safeguard the Balance-of-Payments
1. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may:
(a) in case of trade in goods, in accordance with GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement, adopt restrictive import measures;
(b) in case of trade in services, adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.
2. Restrictions adopted or maintained under paragraph 1(b) shall:
(a) be consistent with the Articles of Agreement of the International Monetary Fund;
(b) avoid unnecessary damage to the commercial, economic, and financial interests of the other Party;
(c) not exceed those necessary to deal with the circumstances described in paragraph 1;
(d) be temporary and be phased out progressively as the situation specified in paragraph 1 improves; and
(e) be applied on a non-discriminatory basis such that the other Party is treated no less favourably than any non-Party.
3. In determining the incidence of restrictions adopted or maintained under paragraph 1, a Party may give priority to economic sectors which are more essential to its economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector.
4. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall be notified promptly to the other Party.
5. If a Party considers that the restrictive measure adopted or maintained affects the bilateral trade relationship, it may request consultations with the other Party in order to review the restrictions applied by it, and the other Party shall commence such consultations.
Chapter 20. INSTITUTIONAL PROVISIONS
Article 20.1. FTA Joint Commission
1. The Parties hereby establish the China-Nicaragua Free Trade Agreement Joint Commission (hereinafter referred to as the “FTA Joint Commission”) comprising representatives of each Party. The Parties shall be represented by senior officials designated by them for this purpose.