(c) implement, as appropriate, the decisions which were adopted under the international agreements referred to in paragraph 1, including through laws, regulations, strategies, plans and programmes; and
(d) exchange information and consult with the other Party at bilateral and multilateral levels on matters of relevance to this Article, including trade in wildlife and natural resource-based products, the valuation, mapping and assessment of ecosystems and related services, and the access to genetic resources and the fair and equitable sharing of benefits arising from their utilisation.
Article 16.7. Sustainable Management of Forests and Trade In Timber and Timber Products
1. The Parties recognise the importance and the role of trade and investment in ensuring the conservation and sustainable management of forests.
2. In that context, the Parties shall:
(a) encourage conservation and sustainable management of forests, and trade in timber and timber products harvested in accordance with the laws and regulations of the country of harvest;
(b) contribute to combating illegal logging and related trade including, as appropriate, the trade with third countries; and
(c) exchange information and share experiences at bilateral and multilateral levels with a view to promoting the conservation and sustainable management of forests and trade in legally harvested timber and timber products, as well as to combating illegal logging.
Article 16.8. Trade and Sustainable Use of Fisheries Resources and Sustainable Aquaculture
1. The Parties recognise the importance and the role of trade and investment in ensuring the conservation and sustainable use and management of fisheries resources, safeguarding marine ecosystems, and promoting responsible and sustainable aquaculture.
2. In that context, the Parties shall:
(a) comply with the United Nations Convention on the Law of the Sea, the Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas, done at Rome on 24 November 1993, and the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, done at New York on 4 August 1995, take measures to achieve the objectives and principles of the Code of Conduct for Responsible Fisheries adopted by the Conference of the Food and Agriculture Organisation on 31 October 1995, encourage the implementation of port state measures both at global and regional levels, and, as appropriate, encourage third countries to ratify, accept, approve, or accede to, relevant international agreements to which both Parties are party;
(b) promote conservation and sustainable use of fisheries resources through appropriate international organisations or bodies in which both Parties participate, including regional fisheries management organisations (hereinafter referred to as "RFMOs"), by means of, where applicable, effective monitoring, control or enforcement of the RFMOs' resolutions, recommendations or measures, and implementation of their catch documentation or certification schemes;
(c) adopt and implement their respective effective tools for combating illegal, unreported and unregulated (hereinafter referred to as "IUU") fishing, including through legal instruments, and, where appropriate, control, monitoring and enforcement, and capacity management measures, recognising that voluntary sharing of information on IUU fishing will enhance the effectiveness of these tools in the fight against IUU fishing, and underlining the crucial role of the members of RFMOs with major fisheries markets to leverage a sustainable use of fisheries resources; and
(d) promote the development of sustainable and responsible aquaculture, taking into account its economic, social and environmental aspects.
Article 16.9. Scientific Information
When preparing and implementing measures with the aim of protecting the environment or labour conditions that may affect trade or investment, the Parties shall take account of available scientific and technical information, and where appropriate, relevant international standards, guidelines or recommendations, and the precautionary approach.
Article 16.10. Transparency
Each Party shall ensure that any measure of general application pursuing the objectives of this Chapter is administered in a transparent manner, in accordance with its laws and regulations and Chapter 17, including by providing the public with reasonable opportunities and sufficient time to comment, and by publishing such measures.
Article 16.11. Review of Sustainability Impacts
The Parties recognise the importance of reviewing, monitoring and assessing, jointly or individually, the impact of the implementation of this Agreement on sustainable development through their respective processes and institutions, as well as those set up under this Agreement.
Article 16.12. Cooperation
Recognising the importance of cooperation on trade-related and investment-related aspects of environmental and labour policies in order to achieve the objectives of this Agreement, the Parties may, inter alia:
(a) cooperate at bilateral or multilateral level in the fields of environmental protection and labour, including through appropriate international organisations or bodies in which both Parties participate;
(b) cooperate on evaluating the mutual impact between trade and environment, and trade and labour, as well as on identifying ways to enhance, prevent or mitigate such impact, taking into account the results of the monitoring and assessment carried out by the Parties, for instance, sustainability impact assessments as far as the European Union is concerned;
(c) cooperate to facilitate and promote trade and investment in environmental goods and services, in a manner consistent with this Agreement, including through the exchange of information;
(d) cooperate on labelling schemes, including through the exchange of information on eco-labels, as well as other measures and initiatives that contribute to sustainability, including as appropriate fair and ethical trade schemes;
(e) cooperate to promote corporate social responsibility, notably through the exchange of information and best practices, including on adherence, implementation, follow-up, and dissemination of internationally agreed guidelines and principles;
(f) cooperate on trade-related aspects of ILO's Decent Work Agenda;
(g) cooperate on trade-related aspects of multilateral environmental agreements, including through the exchange of views and information on the implementation of CITES and through technical and customs cooperation;
(h) cooperate on trade-related aspects of the international climate change regime, including on means to promote low-carbon technologies, other climate-friendly technologies and energy efficiency;
(i) cooperate to promote the conservation and sustainable use of biological diversity, including combatting illegal trade in endangered species of wild fauna and flora;
(j) cooperate to promote the conservation and sustainable management of forests and trade in legally harvested timber and timber products, as well as to combat illegal logging; and
(k) cooperate, bilaterally or through appropriate international organisations or bodies in which both Parties participate, to promote sustainable fishing and aquaculture practices and trade in legally obtained fisheries resources, as well as to combat IUU fishing.
Article 16.13. Committee on Trade and Sustainable Development
1. The Committee on Trade and Sustainable Development established pursuant to Article 22.3 (hereinafter referred to in this Chapter as "the Committee") shall be responsible for the effective implementation and operation of this Chapter.
2. The Committee shall have the following functions:
(a) reviewing and monitoring the implementation and operation of this Chapter and, when necessary, making appropriate recommendations to the Joint Committee for its consideration related to subparagraph 5(d) of Article 22.1;
(b) considering any other matter related to this Chapter as the Parties may agree;
(c) interacting with civil society (128) on the implementation of this Chapter;
(d) carrying out other functions as may be delegated by the Joint Committee pursuant to subparagraph 5(b) of Article 22.1; and
(e) seeking solutions to resolve differences between the Parties as to the interpretation or application of this Chapter, including through the procedures pursuant to paragraph 5 of Article 16.17. (129)
3. The Committee shall meet within one year of the date of entry into force of this Agreement. Thereafter, the Committee shall meet in accordance with subparagraph 3(a) of Article 22.3 without prejudice to procedures pursuant to paragraph 5 of Article 16.17.
4. The Committee will pursue coherence and cooperation between its work and the activities of the ILO and of relevant multilateral environmental organisations or bodies.
Article 16.14. Contact Points
Each Party shall, upon the entry into force of this Agreement, designate a contact point to facilitate communications between the Parties on any matter relating to this Chapter and notify the other Party of the contact details including information regarding the relevant officials. The Parties shall promptly notify each other of any change of those contact details.
Article 16.15. Domestic Advisory Group
1. Each Party shall convene meetings of its own new or existing domestic advisory group or groups on economic, social and environmental issues related to this Chapter and consult with the group or groups in accordance with its laws, regulations and practices.
2. Each Party is responsible for ensuring a balanced representation of independent economic, social and environmental stakeholders, including employers' and workers' organisations and environmental groups, in the advisory group or groups.
3. The advisory group or groups of each Party may meet on its or their own initiative and express its or their opinions on the implementation of this Chapter independently of the Party and submit those opinions to that Party.
Article 16.16. Joint Dialogue with Civil Society
1. The Parties shall convene the Joint Dialogue with civil society organisations situated in their territories (hereinafter referred to in this Chapter as "Joint Dialogue"), including members of their domestic advisory groups referred to in Article 16.15, to conduct a dialogue on this Chapter.
2. The Parties shall promote in the Joint Dialogue a balanced representation of relevant stakeholders, including independent organisations which are representative of economic, environmental and social interests as well as other relevant organisations as appropriate.
3. The Joint Dialogue shall be convened no later than one year after the date of entry into force of this Agreement. Thereafter, the Joint Dialogue shall be convened regularly, unless the Parties agree otherwise. The Parties shall agree on the operation of the Joint Dialogue before the first meeting of the Joint Dialogue. Participation in the Joint Dialogue may take place by any appropriate means of communication as agreed by the Parties.
4. The Parties will provide the Joint Dialogue with information on the implementation of this Chapter. The views and opinions of the Joint Dialogue may be submitted to the Committee and may be made publicly available.
Article 16.17. Government Consultations
1. In the event of disagreement between the Parties on any matter regarding the interpretation or application of this Chapter, the Parties shall only have recourse to the procedures set out in this Article and Article 16.18. The provisions of this Chapter shall not be subject to dispute settlement under Chapter 21.
2. A Party may request in writing consultations with the other Party on any matter concerning the interpretation and application of this Chapter. The Party requesting consultations shall set out the reasons for the request, including identification of the matter and an indication of its factual and legal basis, specifying the relevant provisions of this Chapter.
3. When a Party requests consultation pursuant to paragraph 2, the other Party shall reply promptly and enter into consultations with a view to reaching a mutually satisfactory resolution of the matter.
4. During consultations, each Party shall provide sufficient information to enable a full examination of the matter in question. The Parties shall take into account the activities of the ILO and other relevant international organisations or bodies in which both Parties participate and, as may be required by the Parties on an ad hoc basis, may seek advice from those international organisations or bodies, or other experts. The Parties shall discuss appropriate measures to be implemented, taking into account that advice.
5. If no solution is reached through the consultations held in accordance with paragraphs 2 to 4, the Committee shall be convened promptly on request of a Party to consider the matter in question.
6. The Parties shall ensure that the solutions reached through the consultations under this Article will be jointly made publicly available, unless the Parties agree otherwise.
Article 16.18. Panel of Experts
1. If, no later than 75 days of the date of the request by a Party to convene the Committee pursuant to paragraph 5 of Article 16.17, the Parties do not reach a mutually satisfactory resolution of the matter concerning the interpretation or application of the relevant Articles of this Chapter, a Party may request that a panel of experts be convened to examine the matter in accordance with the terms of reference referred to in paragraph 2. Such request shall be made in writing through the contact point of the other Party referred to in Article 16.14 and shall identify the reasons for the request, including the identification of the matter to be resolved and an indication of its factual and legal basis.
2. The Committee shall, within one year of the date of entry into force of this Agreement, adopt the rules of procedure and the terms of reference for the panel of experts. The rules of procedure shall identify the procedures for finding the relevant information. The panel shall interpret the relevant Articles of this Chapter in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties, done at Vienna on 23 May 1969. Pending the establishment of those rules of procedure and terms of reference, the Rules of Procedure referred to in Article 21.30 shall apply mutatis mutandis, and the terms of reference shall be, unless the Parties agree otherwise no later than five days after the date of establishment of the panel, as follows:
"to examine, in the light of the relevant Articles of Chapter 16, the matter referred to in the request for the establishment of the panel of experts, and to issue a report in accordance with paragraph 5 of Article 16.18, making recommendations for the resolution of the matter".
3. The panel of experts may obtain information from any source it deems appropriate. For matters related to ILO instruments or multilateral environmental agreements, it should seek information and advice from the relevant international organisations or bodies. Any information obtained pursuant to this paragraph shall be submitted to the Parties for their comments.
4. The panel shall be composed of three experts. They shall be selected in accordance with subparagraphs (a) to (e).
(a) The experts shall have relevant technical or legal expertise in the issues addressed in this Chapter. They shall be independent of, and not be affiliated with or take instructions from, either Party. They shall serve in their individual capacities and not take instructions from any organisation or government, nor have been involved in the matter in question in any capacity.
(b) Each Party shall, no later than 45 days after the date of receipt of the request to convene the panel, appoint one expert who may be a national of that Party and propose up to three candidates to serve as the chairperson of the panel. The chairperson shall not be a national of either Party. The Parties shall agree on and appoint the chairperson from the proposed candidates no later than 15 days after the expiry of the 45 day period.
(c) If a Party has not appointed an expert or if the Parties have not agreed on nor appointed the chairperson pursuant to subparagraph (b), the experts or the chairperson not yet appointed shall be chosen no later than 15 days after the expiry of the 15 day period provided for in subparagraph (b) by lot from the candidates proposed pursuant to subparagraph (d).
(d) The Committee shall, within one year of the date of entry into force of this Agreement, establish a list of at least 10 individuals who are willing and able to serve as experts pursuant to this Article, and who meet the qualifications set out in subparagraph (a). The list shall be composed of three sub-lists: one for each Party and one for individuals who are not nationals of either Party and who shall act as the chairperson of the panel. Each Party shall select at least three individuals to serve as experts for its sub-list. Unless the Parties agree otherwise, they shall jointly select four individuals for the sub-list of chairpersons. The Committee will ensure that the number of individuals on the list is always maintained at the level required by this subparagraph.
(e) The date of establishment of a panel shall be the date on which the chairperson is appointed.
5. The panel of experts shall issue an interim and a final report to the Parties setting out the findings of facts, the interpretation or the applicability of the relevant Articles and the basic rationale behind any findings and suggestions. No later than 45 days after the date of receipt of the interim report, which shall be issued no later than 90 days after the date of establishment of the panel, the Parties may submit written comments on that report. After considering any such written comments, the panel of experts may modify the report and make any further examination it considers appropriate. The final report shall be issued no later than 180 days after the date of establishment of the panel, unless the chairperson of the panel notifies the Parties in writing that the deadline cannot be met. In that case, the final report shall be issued no later than 200 days after the date of establishment of the panel, unless the Parties agree otherwise. The final report shall be made publicly available. The Parties shall ensure the protection of confidential information.
6. The Parties shall discuss actions or measures to resolve the matter in question, taking into account the panel's final report and its suggestions. Each Party shall inform the other Party and its own domestic advisory group or groups of any follow-up actions or measures no later than three months after the date of issuance of the final report. The follow-up actions or measures shall be monitored by the Committee. The domestic advisory group or groups and the Joint Dialogue may submit their observations in this regard to the Committee.
Article 16.19. Review
1. The Committee shall discuss, as necessary, the implementation and operation of the institutional and consultation provisions contained in Articles 16.13, 16.17 and 16.18, taking into account, inter alia, the experience gained through the implementation and operation of this Chapter and the developments of the relevant policies of each Party. Such discussions may concern possible amendments to these Articles.
2. Taking into account the outcome of the discussions referred to in paragraph 1, the Committee may recommend to the Joint Committee in accordance with subparagraph 2(a) of Article 16.13 amendments to the Articles referred to in paragraph 1.
Chapter 17. TRANSPARENCY
Article 17.1. Definitions
For the purposes of this Chapter, "measure of general application" means any law, regulation, rule, administrative or judicial decision, or administrative or judicial procedure, of general application with respect to any matter covered by this Agreement.
Article 17.2. Transparent Regulatory Environment
Recognising the impact which its regulatory environment may have on trade and investment between the Parties, each Party shall provide for a transparent regulatory environment, which is effective and predictable for persons including economic operators, especially small and medium-sized enterprises.
Article 17.3. Publication
When introducing or changing measures of general application, each Party shall:
(a) promptly publish those measures of general application, or otherwise make them publicly available, together with an explanation of their objective and rationale, and where feasible, by electronic means such as a website in English; and
(b) endeavour to allow for a reasonable interval between the time when those measures of general application are published or made publicly available and the time when they enter into force, except in duly justified cases.
Article 17.4. Enquiries
1. Each Party shall, on request of the other Party, respond within a reasonable period of time to specific questions from, and provide information to, the other Party with respect to its measures of general application.
2. Each Party shall make easily available to the public the names and addresses of the competent authorities responsible for its measures of general application.
3. Each Party shall establish or maintain appropriate mechanisms for responding to enquiries from a person regarding its measures of general application.
4. The Parties recognise that the responses provided to the enquiries referred to in paragraph 3 may not be definitive or legally binding but for information purposes only, unless otherwise provided for in the laws and regulations of each Party.
Article 17.5. Administration of Measures of General Application
1. Each Party shall administer in a consistent, objective, impartial and reasonable manner all its measures of general application.
2. When applying measures of general application in administrative proceedings to particular persons, goods or services of the other Party in specific cases, each Party shall, in accordance with its laws and regulations, provide persons that are directly affected by those administrative proceedings with:
(a) a reasonable notice of when the proceedings are initiated, including the legal basis and a description of the nature of the proceedings, of the facts and of the issues in question; and
(b) a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative decision, except for reasons of urgency.
Article 17.6. Review and Appeal
1. Each Party shall establish or maintain judicial, arbitral or administrative tribunals or procedures for the purpose of the prompt review or appeal and, where warranted, correction of administrative actions or, as provided for in its laws and regulations, of failures to act with respect to any matter covered by this Agreement. Those tribunals or procedures shall be impartial and independent of the office or authority entrusted with administrative enforcement of such actions and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that the parties before the tribunals or involved in the procedures referred to in paragraph 1 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.
3. Each Party shall ensure, subject to further review or appeal as provided for in its laws and regulations, that the decision referred to in subparagraph 2(b) is implemented by the relevant offices or authorities with respect to the administrative action concerned.
Article 17.7. Cooperation on the Promotion of Increased Transparency
The Parties shall cooperate, where appropriate, in bilateral, regional and multilateral fora on ways to promote transparency in respect of international trade and investment.
Article 17.8. Relation to other Chapters
This Chapter applies without prejudice to any specific provisions in other Chapters of this Agreement.
Chapter 18. GOOD REGULATORY PRACTICES AND REGULATORY COOPERATION
Section A. Good Regulatory Practices and Regulatory Cooperation
Subsection 1. General Provisions
Article 18.1. Objectives and General Principles
1. The objectives of this Section are to promote good regulatory practices and regulatory cooperation between the Parties with the aim of enhancing bilateral trade and investment by:
(a) promoting an effective, transparent and predictable regulatory environment;
(b) promoting compatible regulatory approaches and reducing unnecessarily burdensome, duplicative or divergent regulatory requirements;
(c) discussing regulatory measures, practices or approaches of a Party, including how to enhance their efficient application; and
(d) reinforcing bilateral cooperation between the Parties in international fora.
2. Nothing in this Section shall affect the right of a Party to define or regulate its own levels of protection in pursuit or furtherance of its public policy objectives in areas such as:
(a) public health;
(b) human, animal and plant life and health;
(c) occupational health and safety;
(d) labour conditions;
(e) the environment including climate change;
(f) consumers;
(g) social protection and social security;
(h) personal data and cybersecurity;
(i) cultural diversity;
(j) financial stability; and
(k) energy security.
3. Nothing in this Section shall be construed to prevent a Party from:
(a) adopting, maintaining and applying regulatory measures in accordance with its legal framework, principles (130) and deadlines, in order to achieve its public policy objectives at the level of protection it deems appropriate; and
(b) providing and supporting services of general interest, including those related to water, health, education or social services.
4. Regulatory measures shall not constitute a disguised barrier to trade.
5. Nothing in this Section shall be construed as obliging the Parties to achieve any particular regulatory outcome.
Article 18.2. Definitions
For the purposes of this Section:
(a) "regulatory authority" means:
(i) the European Commission for the European Union; and
(ii) the Government of Japan for Japan; and
(b) "regulatory measures" means measures of general applicability, which are:
(i) for the European Union:
(A) regulations and directives, as provided for in Article 288 of the TFEU; and
(B) implementing and delegated acts, as provided for in Articles 290 and 291 of the TFEU, respectively; and
(ii) for Japan:
(A) laws;
(B) Cabinet Orders; and
(C) Ministerial Ordinances.