3. The Committee shall meet within one year of entry into force of this Agreement, or at times mutually agreed by the Parties.
4. The Committee shall be coordinated by the following contact points:
(a) for Korea, the Korean Agency for Technology and Standards, or its successor; and
(b) for Israel, the Foreign Trade Administration, the Ministry of Economy and Industry, or its successor.
5. The Parties shall notify each other promptly of any change of their contact points or any changes to the details of the relevant officials.
Article 6.10. INFORMATION EXCHANGE
A Party shall provide any information or explanation requested by the other Party pursuant to this Chapter in print form or electronically within a reasonable period. A Party shall endeavour to respond to each such request within 60 days.
Article 6.11. DEFINITIONS
For the purposes of this Chapter:
(a) the definitions set out in Annex 1 of the TBT Agreement are incorporated into and made part of this Chapter, mutatis mutandis; and
(b) designation means the authorisation of a conformity assessment body to perform conformity assessment procedures, by a body with the authority to designate, monitor, suspend or withdraw designation, or remove suspension of conformity assessment bodies within the territories of the Parties.
Chapter 7. TRADE REMEDIES
Section A. Bilateral Safeguard Measures
Article 7.1. APPLICATION OF A BILATERAL SAFEGUARD MEASURE
1. If, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other Party constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party may:
(a) suspend the further reduction of any rate of customs duty on the good provided for under this Agreement;
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favored-nation (MFN) applied rate of duty on the good in effect at the time the action is taken; and
(ii) the base rate of customs duty specified in the Schedules included in Annex 2-B (Reduction or Elimination of Customs Duties) pursuant to Article 2.4 (Reduction or Elimination of Customs Duties).
Article 7.2. CONDITIONS AND LIMITATIONS
1. A Party shall apply a bilateral safeguard measure only following an investigation by the Partyâs competent authority in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement, and to this end, Articles 3 and 4.2(c) of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis.
2. In the investigation described in paragraph 1, the Party shall comply with the requirements of Articles 4.2(a) and 4.2(b) of the Safeguards Agreement, and to this end, Articles 4.2(a) and 4.2(b) of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis.
3. Each Party shall ensure that its competent authority completes any such investigation within one year of its date of initiation.
4. Neither Party may apply a bilateral safeguard measure:
(a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment;
(b) for a period exceeding two years except that the period may be extended by up to one year if the competent authority of the importing Party determines, in conformity with the procedures specified in this Article, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, provided that the total period of application of a bilateral safeguard measure, including the period of initial application and any extension thereof, shall not exceed three years; and
(c) beyond the expiration of the transition period, except if the Committee on Trade in Goods decides otherwise.
5. Bilateral safeguard measures may not be applied in the first year of the transition period.
6. Neither Party may apply a bilateral safeguard measure more than once against the same good.
7. A Party shall notify the other Party in writing on initiation of an investigation described in paragraph 1 and shall consult with the other Party in advance of applying a bilateral safeguard measure, with a view to reviewing the information arising from the investigation and exchanging views on the proposed measure, including ways to address any related issues. Such a consultation shall not be construed to prevent the Party from applying a bilateral safeguard measure pursuant to conditions and limitations set out in this Article.
8. Where the expected duration of the bilateral safeguard measure is over one year, the importing Party shall progressively liberalize it at regular intervals.
9. When a Party terminates a bilateral safeguard measure, the rate of customs duty shall be the rate that, according to the Partyâs Schedule to Annex 2-B (Reduction or Elimination of Customs Duties), would have been in effect but for the measure.
Article 7.3. PROVISIONAL MEASURES
1. In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a bilateral safeguard measure on a provisional basis pursuant to a preliminary determination by its competent authority that there is clear evidence that imports of an originating good from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and that such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry.
2. Before a Party's competent authority may make a preliminary determination, the Party shall publish a public notice in its official journal setting forth how interested parties, including importers and exporters, may obtain a non-confidential copy of the application requesting a provisional bilateral safeguard measure, and shall provide interested parties at least 20 days after the date it publishes the notice to submit evidence and views regarding the application of a provisional measure. A Party may not apply a provisional measure until at least 45 days after the date its competent authority initiates an investigation.
3. The applying Party shall notify the other Party before applying a bilateral safeguard measure on a provisional basis. At the request of the other Party, the Party intending to take a provisional measure, shall offer the possibility for consultations in advance of applying the provisional measure. If due to critical circumstances, consultations cannot be held prior to applying the provisional measure, the consultations shall take place immediately following the application of the provisional measure.
4. The duration of any provisional measure shall not exceed 200 days, during which time the Party shall comply with the requirements of Articles 7.2.1 and 7.2.2.
5. The Party shall promptly refund any tariff increases if the investigation described in Article 7.2.1 does not result in a finding that the requirements of Article 7.1 are met. The duration of any provisional measure shall be counted as part of the period described in Article 7.2.4(b).
Article 7.4. COMPENSATION
1. No later than 30 days after it applies a bilateral safeguard measure, a Party shall afford an opportunity for the other Party to consult with it regarding appropriate trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. The applying Party shall provide such compensation as the Parties mutually agree.
2. If the Parties are unable to agree on compensation within 30 days after consultations begin, the Party against whose originating good the measure is applied may suspend the application of concessions with respect to originating goods of the applying Party that have trade effects substantially equivalent to the bilateral safeguard measure.
3. The applying Party's obligation to provide compensation under paragraph 1 and the other Party's right to suspend concessions under paragraph 2 shall terminate on the date the bilateral safeguard measure terminates.
4. Any compensation shall be based on the total period of application of the provisional bilateral safeguard measure and of the bilateral safeguard measure.
Article 7.5. GLOBAL SAFEGUARD MEASURES
1. Each Party retains its rights and obligations under Article XIX of GATT 1994, the Safeguards Agreement and Article V of the Agreement on Agriculture. Unless otherwise provided in this Article, this Agreement does not confer any additional rights or obligations on the Parties with regard to actions taken under Article XIX of GATT 1994, the Safeguards Agreement and Article V of the Agreement on Agriculture, except that a Party taking a global safeguard measure may exclude imports of an originating good of the other Party from that measure if such imports are not a substantial cause of serious injury or threat thereof.
2. The competent investigating authority shall determine whether the imports from the other Party are a substantial cause of serious injury or threat thereof considering such factors as the import share, the change of the import share and the level and change in the level of imports of the other Party. 3. At the request of the other Party, the Party intending to take a global safeguard measure shall provide immediately written notification of all pertinent information on the initiation of a safeguard investigation, the preliminary determination and the final determination of the investigation. 4. Neither Party may apply, with respect to the same good, at the same time:
(a) a bilateral safeguard measure; and
(b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement.
Article 7.6. DEFINITIONS
For the purposes of Section A:
competent investigating authority means:
(a) for Korea, the Korea Trade Commission, or its successors; and
(b) for Israel, the Commissioner of Trade Levies in the Ministry of Economy and Industry or the corresponding unit in the Ministry of Agriculture and Rural Development, or its successors; and
domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party, or those whose collective output of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;
bilateral safeguard measure means a measure described in Article 7.1;
serious injury means a significant overall impairment in the position of a domestic industry;
threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent; and
transition period means the period from the date of entry into force of this Agreement until 5 years from the date of completion of tariff reduction or elimination in accordance with that Party's schedule of tariff commitments in Annex 2-B.
Section B. Anti-dumping and Countervailing Duties
Article 7.7. GENERAL PROVISIONS
1. Except as otherwise provided for in this Chapter, the Parties maintain their rights and obligations under Article VI of GATT 1994, the Agreement on Implementation of Article VI of GATT 1994, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the "Anti-Dumping Agreement") and the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the "SCM Agreement").
2. The Parties agree that anti-dumping and countervailing duties should be used in full compliance with the relevant WTO requirements and should be based on a fair and transparent system as regards proceedings affecting goods originating in the other Party. For this purpose, the Parties shall ensure, immediately after any imposition of provisional measures and in any case before the final determination, full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply measures, without prejudice to Article 6.5 of the Anti- Dumping Agreement and Article 12.4 of the SCM Agreement. Disclosures shall be made in writing, and allow interested parties sufficient time to make their comments.
3. Interested parties shall be granted the opportunity to be heard in order to express their views during the anti-dumping or countervailing duty investigations.
Article 7.8. NOTIFICATION AND CONSULTATION
1. After receipt by a Party's competent authority of a properly documented anti- dumping application with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification at the earliest practicable opportunity to the other party of its receipt of the application and afford the other Party a meeting or other similar opportunities regarding the application, consistent with the Party's law.
2. After receipt by a Party's competent authority of a properly documented countervailing duty application with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party a meeting to consult with its competent authority regarding the application.
Article 7.9. UNDERTAKINGS
Each Party shall maintain procedures for the receipt of price undertakings in accordance with its law.
Article 7.10. LESSER DUTY RULE
Should a Party decide to impose an anti-dumping or countervailing duty, the amount of such duty shall not exceed the margin of dumping or countervailable subsidies, and it should be less than the margin if such lesser duty would be adequate to remove the injury to the domestic industry.
Article 7.11. CONSIDERATION OF PUBLIC INTEREST
The Parties shall endeavor to consider the public interest before imposing an anti- dumping or countervailing duty.
Article 7.12. PROHIBITION OF ZEROING
When anti-dumping margins are established, assessed, or reviewed under Articles 2, 9.3, 9.5, and 11 of the Anti-Dumping Agreement regardless of the comparison bases under Article 2.4.2 of the Anti-Dumping Agreement, all individual margins, whether positive or negative, should be counted toward the average.
Article 7.13. PUBLIC HEARING
In accordance with its law, each Party shall take due consideration in holding a public hearing, either upon receipt of written application from interested parties or on its own initiative.
Section C. Institutional Provisions
Article 7.14. COMMITTEE ON TRADE IN GOODS
The Parties shall discuss matters relating to this Chapter within the Committee on Trade in Goods established pursuant to Article 2.17(Committee on Trade in Goods).
Chapter 8. GOVERNMENT PROCUREMENT
Article 8.1. OBJECTIVES
1. The Parties recognize their interest in further expanding bilateral participation in each Party's government procurement market.
2. The Parties recognize their shared interest in promoting international liberalization of government procurement markets in the context of the rules-based international trading system.
Article 8. GENERAL PROVISIONS
1. The provisions of the Annex to the WTO Protocol Amending the GPA (hereinafter referred to as the "revised GPA") and the coverage schedules committed by each Party thereto, are incorporated and made part of this Agreement, mutatis mutandis.
2. For the purposes of promoting consistency with the revised GPA, should further amendments be made to the revised GPA, those amendments to which both Parties are party shall be incorporated in this Agreement, except as agreed by the Parties pursuant to the amendment procedure referred to in Article 22.2, (Amendments).
3. Nothing in this Chapter shall be construed to derogate from either Partyâs rights or obligations under the revised GPA.
Article 8.3. TRANSPARENCY
Summary Notice
1. For the purposes of this Chapter, regarding covered procurement, each Party, including its procuring entities, shall use English as the language for publishing the summary notice for each case of intended procurement. The notice shall contain at least the following information:
(a) the subject matter of the procurement;
(b) the final date for the submission of tenders or, where applicable, any final date for the submission of requests for participation in the procurement or for inclusion on a multi-use list; and
(c) the address from which documents related to the procurement may be tequested
Tendering Procedures
2. If, in tendering procedures regarding covered procurement, a procuring entity allows tenders to be submitted in several languages, one of those languages shall be English.
Article 8.4. FURTHER NEGOTIATIONS
If, after the entry into force of this Agreement, a Party accords to a non-party greater access to its government procurement market than the access that is accorded to the other Party, that Party may, at the request of the other Party, enter into negotiations regarding the extension of the same access to the other Party on a reciprocal basis.
Article 8.5. COMMITTEE ON GOVERNMENT PROCUREMENT
1. Recognizing the ongoing work of the WTO Committee on Government Procurement, the Parties shall endeavor to cooperate in pursuing issues of mutual interest.
2. The Parties hereby establish a Committee on Government Procurement, which shall meet as mutually agreed to address matters including:
(a) monitoring the implementation of this Chapter;
(b) facilitating cooperation to increase mutual understanding of each Party's government procurement system,
(c) exchanging relevant information;
(d) exploring market access expansion; and
(e) any other matter related to the operation of this Chapter.
3. For the purposes of paragraph 2, each Party hereby designates the following as its enquiry point to facilitate communication between the Parties on any matter regarding government procurement:
(a) for Korea, Ministry of Trade, Industry and Energy or its successor; and
(b) for Israel, Foreign Trade Administration, Ministry of Economy and Industry or its successor.
Chapter 9. INVESTMENT
Section A. Investment
Article 9.1. SCOPE
1. This Chapter shall apply to measures adopted or maintained by a Party relating to:
(a) investors of the other Party;
(b) covered investments; and
(c) with respect to Article 9.9, all investments in the territory of the Party. (1)
2. for Greater Certainty, Subject to Article 9.17.2, this Chapter does not bind either Party in relation to any act or fact that took place or any situation that ceased to exist before the date of entry into force of this Agreement. (2)
3. For the purposes of this Chapter, measures adopted or maintained by a Party means measures adopted or maintained by:
(a) central or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central or local governments or authorities.
4. Notwithstanding paragraph 1, this Chapter shall not apply to financial services, as defined in Article 1.7 (Definitions).
5. This Chapter shall apply to measures adopted or maintained by the Party relating to a posted bond or financial security, only to the extent that such bond or financial security is a covered investment.
Article 9.2. RELATION TO OTHER CHAPTERS
In the event of any inconsistency between this Chapter and another Chapter, the other Chapter shall prevail to the extent of the inconsistency.
Article 9.3. NATIONAL TREATMENT
1. Each Party shall accord to investors of the other Party treatment no less favorable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, maintenance, use, enjoyment and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favorable than that it accords, in like circumstances, to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, maintenance, use, enjoyment and sale or other disposition of investments.
Article 9.4. MOST-FAVOURED-NATION TREATMENT
1. Each Party shall accord to investors of the other Party treatment no less favorable than that it accords, in like circumstances, to investors of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, maintenance, use, enjoyment and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favorable than that it accords, in like circumstances, to investments in its territory of investors of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, maintenance, use, enjoyment and sale or other disposition of investments.
3. For greater certainty, the treatment referred to in this Article (MFN) does not encompass definitions, or investor-state dispute settlement procedures, or mechanisms including those set out in Section B.
Article 9.5. GENERAL TREATMENT
1. Each Party shall accord to covered investments treatment in accordance with applicable customary international law, including fair and equitable treatment and full protection and security.
2. The concepts of "fair and equitable treatment" and "full protection and security" in this Article do not require treatment in addition to or beyond that which is required by the applicable rules of customary international law and do not create additional substantive rights. For greater certainty:
(a) "fair and equitable treatment" includes the obligation not to deny justice in criminal, civil, or administrative adjudicatory proceedings; and
(b) "full protection and security" requires each Party to provide the level of police protection required under applicable customary international law.
3. A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this Article.
Article 9.6. LOSSES AND COMPENSATION
1. Notwithstanding Article 9.12.6(b), a Party shall accord to investors of the other Party, and to covered investment, with respect to restitution, indemnification, compensation or other settlement relating to losses suffered by investments in its territory owing to war, other armed conflict, revolution, revolt, insurrection, civil disturbance, riot or other such similar activity in its territory, treatment no less favorable than that it accords, in like circumstances, to its own investors and their investments or investors of any non-Party and their investments. Any compensation shall be effectively realizable, freely transferable and freely convertible at the market exchange rate into freely usable currencies.
2. Without prejudice to paragraph 1, if an investor of a Party, in the situations referred to in paragraph 1, suffers a loss in the territory of the other Party resulting from:
(a) requisitioning of its covered investment or part thereof by the latterâs forces or authorities; or
(b) destruction of its covered investment or part thereof by the latterâs forces or authorities, which was not caused in combat action or was not required by the necessity of the situation,
the latter Party shall provide the investor with restitution or compensation for such loss. Any compensation shall be without undue delay, adequate, and effective, freely transferable and freely convertible at the market exchange rate into freely usable currencies.
3. Paragraph 1 shall not apply to existing measures relating to subsidies or grants that would be inconsistent with Article 9.3 but for Article 9.12.6(b).
Article 9.7. EXPROPRIATION AND COMPENSATION (3)
1. No Party may expropriate or nationalize a covered investment either directly or indirectly through measures equivalent to expropriation or nationalization (expropriation), except:
(a) for a public purpose;
(b) in a non-discriminatory manner; and
(c) on payment of prompt, adequate, and effective compensation.
2. The compensation referred to in paragraph 1(c) shall: