Article 11.03. National Treatment

1. Each Party shall accord to cross-border services and service providers of the other Party treatment no less favorable than that it accords, in like circumstances, to its own services and service providers.
2. Specific commitments assumed under this Article shall not be construed to require any Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.

Article 11.04. Most-favored-nation Treatment

Each Party shall accord to cross-border services and service providers of the other Party treatment no less favorable than that it accords, in like circumstances, to services and service providers of any non-Party.

Article 11.05. Local Presence

No Party may require a service provider of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border provision of a service.

Article 11.06. Market Access

No Party may adopt or maintain measures that:
(a) impose limitations on:
(i) the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers, or the requirement of an economic needs test;
(ii) the total value of service transactions or assets in form of numerical quotas or the requirement of an economic needs test;
(iii) the total number of service operations or on the total quantity of services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; (3) or
(iv)the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or
(b) restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.

Article 11.07. Permission, Authorization, Licensing, and Certification

With a view to ensuring that any measure adopted or maintained by a Party relating to the permission, authorization, licensing or certification of nationals of the other Party does not constitute an unnecessary barrier to cross-border trade, each Party shall endeavor to ensure that any such measure:
(a) is based on objective and transparent criteria, such as competence and the ability to provide a cross-border service;
(b) is not more burdensome than necessary to ensure the quality of a cross border service; and
(c) does not constitute a disguised restriction on the cross-border provision of a service.

Article 11.08. Non-conforming Measures

1. Articles 11.03, 11.04, 11.05, and 11.06 do not apply to:
(a) any existing non-conforming measure that is maintained by:
(i) a Party at the national level, as set out in its Schedule to Annex I; or
(ii) a local or municipal level of government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 11.03,11.04,11.05, and 11.06. 
2. Articles 11.03, 11.04, 11.05, and 11.06 do not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out in its Schedule to Annex II. 3. Article 11.04 does not apply to the treatment granted by a Party in accordance with any international treaty or agreement, or with regards to the sectors, subsectors, and activities as set out in its Schedule to Annex III.

Article 11.09. Denial of Benefits

Subject to prior notification and consultation in accordance with Articles 13.04 (Provision of Information) and 15.05 (Consultations), a Party may deny the benefits of this Chapter to a service provider of the other Party where the Party decides, according to its effective law that the service is being provided by an enterprise that is owned or controlled by persons of a non-Party having no substantial business activities in the territory of the other Party.

Article 11.10. Future Liberalization

The Parties, through future negotiations to be convened by the Commission, shall deepen the liberalization reached in different service sectors, with the aim of eliminating the remaining restrictions listed under Article 11.08 (1) and (2).

Article 11.11. Procedures

The Parties shall establish procedures for:
(a) a Party to notify and include in its relevant Schedule the amendments of measures referred to in Article 11.07 (1), (2), and (3); and
(b) consultations on reservations for further liberalization.

Article 11.12. Disclosure of Confidential Information

No provision in this Chapter may be construed as imposing on the Parties the obligation to provide confidential information of which the disclosure may be an obstacle to the observance of laws or otherwise be damaging to the public interest, or that may injure legitimate trade interests of state and private enterprises.

Article 11.13. Transfers and Payments

1. Each Party shall permit all transfers and payments relating to the cross-border supply of services to be made freely and without delay into and out of its territory.
2. Each Party shall permit such transfers and payments relating to the cross-border supply of services to be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent a transfer or payment through the equitable, non-discriminatory, and good faith application of its laws relating to:
(a) bankruptcy, insolvency, or the protection of the rights of creditors;
(b) issuing, trading, or dealing in securities, futures, options, or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offenses; or
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.

Article 11.14. Committee on Investment and Cross-border Trade In Services

1. The Parties hereby establish the Committee on Investment and Cross-border Trade in Services, as set out in Annex 11.14.
2. The Committee shall hear matters relating to this Chapter and Chapter 10 (Investment) and, without prejudice to the provisions of Article 14.05 (2) (Committees), shall have the following functions:
(a) supervising the implementation and administration of Chapters 10 (Investment) and 11 (Cross-border Trade in Services);
(b) discussing matters relating to investment and cross-border trade in services presented by a Party;
(c) analyzing matters that are discussed in other international fora;
(d) facilitating the exchange of information between the Parties and cooperating in giving advice on investment and cross-border trade in services; and
(e) establishing working groups or convening panels of experts on matters of interest to the Parties.
3. The Committee shall meet when necessary or at any other time at the request of any Party. Representatives of other institutions may also take part in its meetings if the relevant authorities deem it appropriate.

Chapter 12. Temporary Entry of Business Persons

Article 12.01. Definitions

1. For purposes of this Chapter, the following terms shall be understood as:
business activities: legitimate commercial activities undertaken and operated for the purpose of obtaining profits in the market, but not including the possibility of obtaining employment, wages or remuneration from a labor source in the territory of a Party;
business person: a national of a Party who engages in trade of goods, provision of services, or management of investment activities;
labor certification: procedure applied by the competent administrative authority for the purpose of determining if a national of a Party who seeks temporary entry into the territory of the other Party displaces national workers in the same domestic industry or noticeably harms its labor conditions;
national: "national" as defined in Chapter 2 (General Definitions), but not including those permanent or definitive residents;
pattern of practice: a practice repeatedly followed by the immigration authorities of one Party during the representative period immediately before the execution of the same; and
temporary entry: entry into the territory of a Party by a business person of the other Party without the intention to establish permanent residence.
2. For purposes of Annex 12.04, the following terms shall be understood as:
executive functions: functions assigned in an organization to a person who shall have the following basic responsibilities:
(a) managing the administration of the organization, or of a relevant component, or function within it;
(b) establishing the policies and objectives of the organization, components or function; or
(c) receiving supervision or general direction only from executives in a higher level, the board of directors or the administrative council of the organization or its shareholders;
management functions: functions assigned in an organization to a person who shall have the following basic responsibilities:
(a) managing the organization or an essential function within it;
(b) supervising and controlling the work of other professional employees, supervisors, or administrators;
(c) having the authority to hire and dismiss or to recommend these actions, and to undertake other actions related to the management of the personnel directly supervised by this person, and to perform senior functions within the organizational hierarchy or functions related to his position; or
(d) performing discretionary actions related to the daily operation of the function over which this person has authority; and management functions: functions assigned in an organization to a person who shall have the following basic responsibilities: functions requiring specialized knowledge: functions that require special knowledge of goods, services, research, equipment, techniques, management of an organization or of its interests and their application in international markets, or an advanced level of knowledge or experience in the processes and procedures of the organization.

Article 12.02. General Principles

This Chapter reflects the preferential trading relationship between the Parties, the convenience of facilitating temporary entry on a reciprocal basis and the establishment of transparent criteria and procedures for temporary entry as well as the need to guarantee the security at the borders, and to protect the domestic labor force and permanent employment in their respective territories.

Article 12.03. General Obligations

1. Each Party shall apply its measures relating to the provisions of this Chapter in accordance with Article 12.02 and, in particular, shall apply them expeditiously so as to avoid undue delays or the impairment of trade in goods or services or the management of investment activities under this Agreement.
2. The Parties shall endeavor to develop and adopt common criteria, definitions, and interpretations for the implementation of this Chapter.

Article 12.04. Granting of Temporary Entry

1. Each Party shall grant temporary entry to business persons who are otherwise qualified for entry under applicable measures relating to public health and safety and national security, in accordance with this Chapter, including the provisions of Annex 12.04 and 12.04 (1).
2. A Party may deny temporary entry to a business person when the temporary entry of that person might adversely affect:
(a) the settlement of a labor dispute underway at the place or intended place of employment; or
(b) the employment of any person who is involved in such dispute. 3. Each Party shall limit any fees for processing applications for temporary entry of business persons to the approximate cost of the services rendered. 4. An authorization of temporary entry under this Chapter does not supersede the requirements demanded by the exercise of a profession or activity according to the specific rules in force in the territory of the Party authorizing the temporary entry.

Article 12.05. Provision of Information

1. In addition to Article 13.03 (Publication), each Party shall:
(a) provide to the other Party such materials as will enable it to become acquainted with its measures relating to this Chapter; and
(b) no later than one (1) year after the date of entry into force of this Agreement, prepare, publish, and make available in its own territory, and in the territory of the other Party, explanatory material in a consolidated document regarding the requirements for temporary entry under this Chapter in such a manner that it enables business persons of the other Party to become acquainted with them.
2. Each Party shall collect, maintain, and make available to the other Party the information regarding the granting of temporary entry under this Chapter to business persons of the other Party who have been issued immigration documentation, including specific data for each authorized category.

Article 12.06. Dispute Settlement

A Party may not initiate proceedings under Article 15.05 (Consultations), regarding a denial to grant temporary entry under this Chapter or a particular case arising under Article 12.03, unless:
(a) the matter involves a pattern of practice; and
(b) the affected business person has exhausted the available administrative proceedings regarding that particular matter, in accordance with the domestic law and regulations of that Party.

Article 12.07. Relationship to other Chapters and Articles

Except as provided in this Chapter, in Chapters 1 (Initial Provisions), 2 (General Definitions), 14 (Administration of the Agreement), 18 (Final Provisions) and in Articles 13.02 (Information Center), 13.03 (Publication), 13.04 (Provision of Information), 13.05 (Guarantees of Hearing, Legality, and Due Process), and 13.06 (Administrative Proceedings for Adopting Measures of General Applications), no provision in this Agreement shall impose an obligation on a Party regarding its immigration measures.

Chapter 13. Transparency

Article 13.01. 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 scope and that establishes a norm of conduct but does not include:
(a) a determination made in an administrative proceeding that applies to a particular person, good, or service of another Party in a specific case; or
(b) a judicial ruling that adjudicates with respect to a particular act or practice.

Article 13.02. Information Center

1. Each Party shall designate within sixty (60) days after the entry in force of this Agreement an office to serve as an information center to facilitate communications among the Parties, on any matter covered by this Agreement.
2. On request of another Party, the information center shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.

Article 13.03. Publication

Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available in such a manner as to enable interested persons and Parties to become acquainted with them.

Article 13.04. Provision of Information

1. To the maximum extent possible, each Party shall notify the other Party of any proposed or actual measure that the Party considers might affect substantially the other Party's interest under this Agreement.
2. On request of another Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure.
3. Any notification or information provided on actual or proposed measures under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.

Article 13.05. Guarantees of Hearing, Legality, and Due Process

Each Party shall ensure that in legal and administrative proceedings related to the application of any measure referred to in Article 13.03, the guarantees of hearing, legality and due process established in their own laws are respected in the sense of Articles 13.06 and 13.07.

Article 13.06. Administrative Proceedings for the Adoption of Measures of General Application

With a view to administering in a consistent, impartial, and reasonable manner all measures of general application affecting matters covered in this Agreement, each Party shall, in its administrative proceedings applying measures referred to in Article 13.03 to particular persons, goods, or services of another Party in specific cases, ensure that:
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated and a general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when the time, the nature of the proceeding, and the public interest permit; and
(c) its procedures are in accordance with domestic law.

Article 13.07. Review and Appeal

1. Each Party shall maintain judicial or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceedings 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 compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the competent authority with respect to the administrative action at issue.

Article 13.08. Communications and Notifications

Except as agreed otherwise, it shall be understood that a communication or notification to a Party has been completed, as of its receipt by the Information Center of that Party.

Article 13.09. Language

Unless the Parties otherwise agree:
(a) notifications, communications, and information supply that a Party provides to the other Party, in accordance with this Agreement, shall be:
in the case of the Republic of China (Taiwan), in its official language, along with a corresponding English translation or in English; and in the case of the Republic of El Salvador and the Republic of Honduras, in their official language, along with a corresponding English translation; and
(b) the writings, allegations, notifications, communications, hearings, and proceedings that the Parties submit, in any procedure described in Chapter 15 (Dispute Settlement) shall be: in the case of the Republic of China (Taiwan), in its official language, along with a corresponding English translation or in English; and
in the case of the Republic of El Salvador and the Republic of Honduras, in their official language, along with a corresponding English translation.

Chapter 14. Administration of the Agreement

Article 14.01. Administrative Commission of the Agreement

1. The Parties hereby establish the Administrative Commission of the Agreement, which is composed of the officials referred to in Annex 14.01, or of the persons designated by them.
2. The Commission shall:
(a) supervise the implementation and the correct application of the provisions of this Agreement;
(b) evaluate the results in the application of this Agreement;
(c) monitor the development of the Agreement and recommend to the Parties any modifications which it deems necessary;
(d) resolve any disputes that may arise regarding the interpretation or application of this Agreement, as stipulated in Chapter 15 (Dispute Settlement);
(e) supervise the work of all committees established or created under this Agreement, as indicated in Article 14.05 (3); and
(f) consider any matter that may affect the operation of this Agreement, or any other to be entrusted by the Parties.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups of experts;
(b) modify, in fulfillment of the Agreement's objectives:
(i) the schedules attached to Annex 3.04 (Tariff Reduction Schedule) with the objective of incorporating goods excluded from the tariff elimination;
(ii) the period referred to in Annex 3.04 (Tariff Reduction Schedule) to speed the process;
(iii) the rules of origin established in Annex 4.03 (Specific Rules of Origin);
(iv)the Uniform Regulations;
(v) the Annexes I, II and III of Chapter 10 (Investment); and
(vi) the Annexes I, II and III of Chapter 11 (Cross-border Trade in Services);
(c) seek the advice of non-governmental persons or groups;
(d) develop any regulations needed for the implementation of this Agreement; and
(e) take any other actions as are necessary in the exercise of its functions if the Parties so decide.
4. Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in subparagraph 3 (b).
5. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by consensus. 6. The Commission shall convene at least once a year in regular session, and if requested by one of the Parties, in extraordinary session. Regular sessions of the Commission shall be chaired successively by each Party.

Article 14.02. Administrative Sub-commission of the Agreement

1. The Parties hereby establish the Administrative Sub-commission of the Agreement, which is composed of the officials as set out in Annex 14.02 or persons designated by them.
2. The Administrative Sub-commission shall:
(a) prepare and revise technical documents for decision-making under this Agreement;
(b) follow-up on the decisions taken by the Commission;
(c) supervise the committees and the working groups of experts established under this Agreement as described in Article 14.05 (3), and in accordance with Article 14.01 (2); and
(d) consider any other matter that may affect the operation of this Agreement, assigned by the Commission.
3. The Commission shall establish its rules and procedures to ensure the operation of the Administrative Sub-commission of the Agreement.

Article 14.03. Secretariat

1. Each Party shall:
(a) designate a permanent office or official responsible for acting on behalf of the National Section of the Secretariat of such Party and shall notify the Commission of the address, phone number and any other relevant information where its National Section is located;
(b) be responsible for:
(i) the operation and costs of the National Section; and
(ii) the remuneration and expenses to be paid to panelists, their assistants and experts appointed as stipulated in this Agreement, in Annex 14.03; and
(c) designate a Secretary of its National Section, who shall be the civil employee responsible for its administration.
2. The Secretariat shall:
(a) assist the Commission and the Sub-commission;
(b) support the arbitrating groups created pursuant to Chapter 15 (Dispute Settlement) and the procedures established in Article 15.11 (Model Rules of Procedure);
(c) support the work of the committees and working groups of experts established under the Agreement, as instructed by the Commission; and
(d) conduct any other matters instructed by the Commission.

Article 14.04. General Provisions

1. The provisions in this Section shall apply to all the committees and working groups of experts established under the framework of this Agreement.
2. Each committee and working group of experts shall be composed of representatives of the Parties. All decisions shall be taken by consensus.

Article 14.05. Committees

1. The Commission may create committees other than the ones established in Annex 14.05.
2. Each committee shall:
(a) supervise the implementation of the Chapters of this Agreement under its competence;
(b) consider any proposed or actual measures submitted by a Party, that may affect the effective implementation of the Agreement;
(c) request technical reports by the competent authorities, and take necessary actions to resolve the issue;
(d) evaluate and recommend to the Commission any proposal for modifications, amendments or any other additional provisions to the Chapters of this Agreement under its competence; and
(e) carry out the matters instructed by the Commission as established under this Agreement and any other mechanisms derived from it.
3. The Commission and the Sub-commission shall supervise the work of all committees established under this Agreement.
4. Each committee may establish its own rules and procedures, and shall meet upon request of any of the Parties or the Commission.

Article 14.06. Working Groups of Experts

1. Notwithstanding Article 14.01 (3) (a), a committee may create ad hoc groups of experts, for completing the technical studies it deems necessary to carry out its mandate, whose work shall be supervised. The working group of experts shall strictly complete the mandate entrusted to it, within the terms and timeframes established and shall report to its corresponding committee.
2. The rules and procedures of a working group of experts may be established by the corresponding committee.

Chapter 15. Dispute Settlement

Article 15.01. General Provisions

1. The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
2. All solutions to matters formally raised under the provisions of this Chapter, shall be consistent with this Agreement and shall not nullify or impair benefits accruing to any Party under this Agreement, nor impede the attainment of any objective of this Agreement.
3. Mutually agreed solutions to matters formally raised under the consultations of this Chapter made by the Parties of the matters related with this Agreement shall be notified to the Commission within a thirty (30) day period after a solution is reached.
4. For the purpose of this Chapter, "disputing Parties" means the complaining Party and the Party complained against.

Article 15.02. Scope of Application

Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply:
(a) with respect to the prevention or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement;
(b) wherever a Party considers that an actual or proposed measure of the other Party is or would be inconsistent with the obligations of this Agreement or that the other Party has otherwise failed to carry out its obligations under this Agreement; or
(c) wherever a Party considers that an actual or proposed measure of the other Party causes or would cause nullification or impairment in the sense of Annex 15.02.

Article 15.03. Choice of Forum

1. The disputes arising in connection with the provisions of this Agreement and the WTO Agreement or agreements negotiated in accordance with the WTO Agreement may be settled in one of those fora, as the complaining Party chooses.
2. Where a Party has requested the establishment of the arbitral panel under Article 15.07, or has requested the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO Agreement, the forum chosen shall be used to the exclusion of the other.

Article 15.04. Perishable Goods

1. On disputes regarding perishable goods 1 , the Parties and the panel referred to in Article 15.07 may expedite the procedure. For this purpose, the Parties shall, by mutual agreement, shorten the timeframes established in this Chapter.
2. In cases of urgency, including issues regarding perishable goods, the consultations shall begin within fifteen (15) days upon receipt of the request.

Article 15.05. Consultations

1. A Party may request in writing consultations with the other Party with respect to any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement, as referred to in Article 15.02.
2. The Party shall deliver the request to the other Party, and shall set out the reasons for the request, including an identification of the actual or proposed measure or other matter at issue, and the legal basis for the complaint.
3. The consulting Parties shall make every attempt to arrive at a mutually satisfactory resolution of any matter through consultations under this Article. For this purpose, the Parties shall:
(a) provide information to enable a full examination of how the actual or proposed measure or other matter might affect the operation and application of this Agreement; and
(b) treat any confidential information exchanged in the course of consultations on the same basis as the Party providing the information.

Article 15.06. Commission – Good Offices, Conciliation, and Mediation

1. Any consulting Party may (2) request in writing a meeting of the Commission, if the Parties fail to resolve a matter pursuant to Article 15.04 or 15.05 within:
(a) sixty (60) days of delivery of a request for consultations;
(b) fifteen (15) days of delivery of a request for consultations in matters regarding perishable goods; or (c) such other terms as they may agree.
2. The requesting Party shall deliver the request to the other Party and shall set out the reasons for the request, including an identification of the measure or other matter at issue, and the legal basis for the complaint.
3. Unless it decides otherwise, the Commission shall convene within ten (10) days of delivery of the request and shall endeavour to resolve the dispute promptly. The Commission may:
(a) call on technical advisers or create working groups or expert groups as it deems necessary;
(b) resort to good offices, conciliation, mediation or other dispute resolution procedures; or
(c) make recommendations, in order to assist the consulting Parties in reaching a mutually satisfactory resolution of the dispute.
4. Unless otherwise decided, pursuant to this Article, the Commission shall consolidate two or more proceedings presented for its consideration, relating to the same measure. The Commission may consolidate two or more proceedings presented for its consideration, relating to other matters whenever it deems appropriate to consider these proceedings jointly.

Article 15.07. Establishment of an Arbitral Panel

1. If the Parties fail to resolve the matter within:
(a) thirty (30) days after the Commission has convened pursuant to Article 15.06;
(b) thirty (30) days after the Commission has convened in respect of the matter most recently referred to it, where proceedings have been consolidated pursuant to Article 15.06 (4);
(c) fifteen (15) days after a Party has delivered a request for consultations under Article 15.05 in a matter regarding perishable goods, if the Commission has not convened pursuant to Article 15.06 (1);
(d) sixty (60) days after a Party has delivered a request for consultations under Article 15.05, if the Commission has not convened pursuant to Article 15.06 (3); or
(e) such other terms as the consulting Parties may agree; any Party that requested a meeting of the Commission in accordance with Article 15.05 may request in writing the establishment of an arbitral panel to consider the matter, and shall set out the reasons for the request, including an identification of the actual measure or other matter at issue, and the legal basis for the complaint.
2. The complaining Party shall deliver the request to the other Party, and shall set out the reasons for the request, including an identification of the measure or other matter at issue and the legal basis for the complaint.
3. The disputing Parties may consolidate two (2) or more proceedings regarding other issues whenever they deem it appropriate to consider these proceedings jointly.
4. Arbitral panel procedures shall be considered invoked when the Party complained against receives the request to establish a panel. The disputing Parties shall adopt all necessary measures pursuant to Article 15.10 for the establishment of the panel. 5. Unless otherwise decided by the disputing Parties, the panel shall be established and shall carry out its functions in consistency with the provisions of this Chapter. 6. Notwithstanding paragraph 1, an arbitral panel may not be established to review a proposed measure.

Article 15.08. Roster

1. Within six (6) months of the date of entry into force of this Agreement, the Parties shall establish and maintain a roster of up to thirty (30) individuals with the required qualification to serve as panelists. Said roster shall be composed of the "Roster of Panelists of the Parties" and the "Roster of Panelists of Non-Party Countries". Each Party may designate five (5) national panelists to form the "Roster of Panelists of the Parties", and five (5) panelists of Non-Party countries to form the "Roster of Panelists of Non-Party Countries".
2. The roster of panelists may be modified every three (3) years. Notwithstanding, the Commission may revise, by request of a Party, the roster of panelists before the expiration of this period.
3. The members of the roster of panelists shall meet the qualifications set forth in Article 15.09.

Article 15.09. Qualifications of the Panelists

1. The panelists shall meet the following qualifications:
(a) have expertise or experience in law, international trade, other matters covered by this Agreement, or the resolution of disputes arising under international trade agreements;
(b) be chosen strictly on the basis of objectivity, reliability, and sound judgment; and
(c) be independent of, and not be affiliated with or take instructions from, any Party.
2. The panelists shall comply with a Code of Conduct to be established by the Commission.
3. Individuals may not serve as panelists for a dispute in which they have participated pursuant to Article 15.06.

Article 15.10. Panel Selection

1. The disputing Parties shall apply the following procedures in selecting a panel:
(a) the arbitral panel shall be composed of three (3) members;
(b) the disputing Parties shall endeavour to agree on the designation of the chair of the arbitral panel within fifteen (15) days of receipt of the request for the establishment of the arbitral panel;
(c) if the disputing Parties do not reach an agreement within the above-mentioned timeframe, the chair shall be chosen by drawing lot from the "Roster of Panelists of Non-Party Countries";
(d) within fifteen (15) days after the designation of the chair, each Party shall select a panelist from the "Roster of Panelists of the Parties"; and
(e) if a disputing Party does not select a panelist, the panelist shall be chosen by drawing from the "Roster of Panelists of the Parties" and shall be of that Party's nationality.
2. Where a disputing Party considers that a panelist has violated the Code of Conduct, the disputing Parties shall hold consultations and decide whether to remove that panelist and select a new one pursuant to the provisions of this Article.

Article 15.11. Model Rules of Procedure

1. Upon the entry into force of this Agreement, the Commission shall establish the Model Rules of Procedure in accordance with the following principles:
(a) the procedures shall ensure the right to at least one hearing before the arbitral panel and an opportunity for each disputing Party to provide initial and rebuttal written submissions; and
(b) the hearing before the arbitral panel, the deliberations and the preliminary report, as well as all the writings and communications presented in it shall be confidential.
2. Unless the disputing Parties otherwise agree, the arbitral panel shall conduct its proceedings in accordance with the Model Rules of Procedure.
3. Unless the disputing Parties otherwise agree, within twenty (20) days of receipt of the request for the establishment of the arbitral panel, the terms of reference shall be: "To examine, in the light of the provisions of this Agreement, the matters submitted for its consideration and to make findings, decisions, and recommendations as provided in Articles 15.13 (2) and 15.14".
4. If a complaining Party claims that a matter causes nullification or impairment of benefits referred to in Annex 15.02, the terms of reference shall so indicate.
5. When a disputing Party requests that the arbitral panel makes findings on the extent of the adverse trade effects brought upon by the measure adopted by the other disputing Party and it is considered by the disputing Party as inconsistent with the Agreement, or that the measure has caused nullification or impairment in the sense of Annex 15.02, the terms of reference shall so indicate.

Article 15.12. Role of Experts

Upon request of a disputing Party, or ex officio, the arbitral panel may seek information and technical advice from any persons or institutions that it deems appropriate under the Model Rules of Procedure.

Article 1513. Preliminary Report

1. Unless the disputing Parties otherwise agree, the arbitral panel shall base its preliminary report on the communications and arguments presented by the disputing Parties, as well as the relevant provisions of this Agreement and any information received, pursuant to Article 15.12.
2. Unless the disputing Parties otherwise agree, within ninety (90) days after the arbitral panel has notified its acceptance to the Secretariat and a period of eight (8) days has passed from the day on which the Secretariat notifies the establishment to the disputing Parties, the arbitral panel shall present to the disputing Parties a preliminary report containing:
(a) findings of fact, including any findings pursuant to a request under Article 15.11 (5);
(b) a decision about whether the measure in question is inconsistent with the obligations arising from this Agreement, or is a cause of nullification or impairment in the sense of Annex 15.02 or any other decision requested in the terms of reference; and
(c) its recommendations, if any, to settle the dispute.
3. Panelists may furnish separate opinion in writing on matters in which consensus has not been reached.
4. Either disputing Party may submit written comments to the arbitral panel on its preliminary report within fourteen (14) days of presentation of the report. After considering any written comments on the preliminary report, the arbitral panel upon request of a disputing Party, or ex officio, may:
(a) reconsider its report; and
(b) take any steps deemed appropriate.

Article 15.14. Final Report

1. Within thirty (30) days of the presentation of the preliminary report, unless the disputing Parties otherwise agree, the arbitral panel shall notify the disputing Parties of its final report reached by majority of votes, including any separate opinions, in writing, on matters in which there is no consensus.
2. No arbitral panel may, in either its preliminary report or its final report, disclose the identity of the panelists that voted with the majority or the minority.
3. Unless the disputing Parties otherwise agree, the disputing Parties shall release the final report to the public within fifteen (15) days of its notification to the disputing Parties.

Article 15.15. Implementation of the Final Report

1. The final report of the arbitral panel shall be compulsory for the disputing Parties to implement under the terms and conditions specified in it. The term of implementation shall not exceed six (6) months from the date on which the final report was notified to the disputing Parties, unless the disputing Parties otherwise agree.
2. When the final report of the arbitral panel determines that a measure has not conformed to a disputing Party's obligations under this Agreement, the Party complained against shall be prevented from implementing the measure or shall eliminate the non-conformity.
3. When the final report of the arbitral panel determines that a measure is causing nullification or impairment in the sense of Annex 15.02, it shall indicate the level of nullification or impairment and may suggest mutually satisfactory adjustments for the disputing Parties.

Article 15.16. Suspension of Benefits

1. Unless the disputing Parties notify the Commission of their agreement on the final report, within fifteen (15) days after the expiration of the timeframe determined by the arbitral panel, the panel shall determine if the Party complained against has conformed to the report.
2. The complaining Party may suspend the Party complained against from the benefits arising from this Agreement that have an effect equivalent to the benefits not received, if the arbitral panel decides that:
(a) a measure is inconsistent with the obligations of this Agreement, and the Party complained against has not implemented the final report within the term established by the panel; or
(b) a measure is the cause of nullification or impairment in the sense of Annex 15.02, and the disputing Parties do not reach a mutually satisfactory agreement of the dispute within the term established by the panel.
3. The suspension of benefits shall last until the Party complained against implements the final report or until the disputing Parties reach a mutually satisfactory agreement of the dispute.
4. In considering what benefits to be suspended pursuant to this Article:
(a) the complaining Party should first seek to suspend benefits in the same sector or sectors that are affected by the measure, or other matter that the panel has found to be inconsistent with the obligations of this Agreement or to have caused nullification or impairment in the sense of Annex 15.02; and
(b) if the complaining Party considers not feasible or effective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors.
5. Once benefits have been suspended, the disputing Parties, upon written request of a disputing Party, shall establish an arbitral panel for determining if the final report has been enforced, or if the level of benefits suspended by the complaining Party is excessive to the Party complained against, in accordance with this Article. When possible, the panel shall be composed of the same panelists who resolved the dispute.
6. When the arbitral panel established in paragraph 5 is composed of the same panelists who resolved the dispute, it shall submit a final report within thirty (30) days as of the request mentioned in paragraph 5. When the arbitral panel established in paragraph 5 is not composed of the same panelists, the panel shall submit a final report within sixty (60) days of the meeting in which it was established, or when the disputing Parties so decide.
7. When the Party complained against cannot comply with the final report, within thirty (30) days after the arbitral panel submits the final report, the Party complained against may request consultations with the complaining Party to reach an agreement on alternative measures to compensate the complaining Party.
8. If an agreement on alternative measures is not reached, the complaining Party may suspend the benefits, notwithstanding the provisions established in paragraphs 2 and 4, to the extent necessary to persuade the Party complained against to comply with the final report. In the application of this provision, the difference in the development levels of the disputing Parties will be taken into consideration.

Article 15.17. Interpretation of the Agreement Before Judicial and Administrative Proceedings

1. If an issue of interpretation or application of this Agreement arises in any domestic judicial or administrative proceedings of a Party that the other Party considers as meriting its intervention, or if a court or administrative body solicits the views of a Party, that Party shall notify the other Party. The Commission shall endeavor to agree on an appropriate response as expeditiously as possible.
2. The Party in whose territory the court or administrative body is located shall submit any agreed interpretation of the Commission to the court or administrative body in accordance with the rules of that forum.
3. If the Commission does not agree upon an interpretation or response, a Party may submit its own views to the judicial or administrative proceeding in accordance with the rules of that forum.

Article 15.18. Private Rights

No Party may provide for a right of action under its domestic law against the other Party on the grounds that a measure of the other Party is inconsistent with this Agreement.

Article 15.19. Alternative Dispute Resolution

1. Each Party shall, to the maximum extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area established by this Agreement.
2. For this purpose, each Party shall provide appropriate procedures to ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in such disputes.
3. The Commission may establish an Advisory Committee on Private Commercial Disputes comprising persons with expertise or experience in the resolution of private international commercial disputes. The Committee shall report and provide recommendations to the Commission on general issues referred to it by the Commission respecting the availability, use, and effectiveness of arbitration and other procedures for the resolution of such disputes in the free trade area established by this Agreement.

Chapter 16. Exceptions

Article 16.01. Definitions

For purposes of this Chapter, the following terms shall be understood as:
Fund: the International Monetary Fund; international capital transactions: "international capital transactions", as defined in the Articles of Agreement of the International Monetary Fund;
payments for current international transactions: "payments for current international transactions", as defined in the Articles of Agreement of the International Monetary Fund;
tax convention: a convention for the avoidance of double taxation or other international taxation agreements or arrangements; and
transfers: international transactions and related international transfers and payments.

Article 16.02. General Exceptions

1. Article XX of GATT 1994 and its interpretative notes are incorporated into and made an integral part of this Agreement, for purposes of:
(a) Part Two (Trade in Goods), except to the extent that any of its provisions apply to services and investment; and
(b) Part Three (Trade Barriers), except to the extent that any of its provisions apply to services and investment.
2. Subparagraphs (a), (b) and (c) of Article XIV of the GATS, are incorporated into and made an integral part of this Agreement, for purposes of:
(a) Part Two (Trade in Goods), to the extent that any of its provisions apply to services;
(b) Part Three (Trade Barriers), to the extent that any of its provisions apply to services; and
(c) Part Four (Investment, Services and Related Matters).

Article 16.03. National Security

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;
(b) to prevent a Party from taking any actions that it considers necessary for the protection of its essential security interests:
(i) relating to the traffic in arms, ammunitions and implements of war and to such traffic and transactions in other goods, materials, services and technology undertaking directly or indirectly for the purposes of supplying a military or other security establishment;
(ii) taken in time of war or other emergency in international relations; or
(iii) relating to the implementation of national policies or international agreements respecting the non-proliferation of nuclear weapons or other nuclear explosive devices; or
(c) to prevent a Party from taking action in pursuance of its obligations under the United Nations Charter for the Maintenance of International Peace and Security.

Article 16.04. Balance of Payments

1. No provision in this Agreement shall be interpreted to prevent a Party from adopting or maintaining measures that restrict transfers when the Party faces serious difficulties in or threats to its balance of payments, provided that the restrictions are compatible with this Article.
2. The Party shall notify the other Party within thirty (30) days after the adoption of a measure in accordance with paragraph 1. In the event that all Parties become party to the Articles of Agreement of the International Monetary Fund, the procedure of paragraph 3 should be followed.
3. As soon as it is feasible, after a Party applies a measure according to this Article and its international obligations, the Party shall:
(a) submit all restrictions to current account transactions for review by the Fund according to Article VIII of the Articles of the Agreement of the International Monetary Fund;
(b) initiate consultations with the Fund with respect to the measures of economic adjustment geared to address the fundamental economic problems causing the difficulties; and (c) adopt or maintain economic policies according to such consultations.
4. The measures adopted or maintained under this Article shall:
(a) avoid unnecessary damage to the commercial, economic, and financial interests of the other Party;
(b) not be more burdensome than necessary to deal with the balance of payments difficulties, or threat thereof;
(c) be temporary and be phased out progressively as the balance of payments situation improves;
(d) be consistent with those of paragraph 3 (c), as well as with the Articles of Agreement of the International Monetary Fund; and (e) be applied on a national treatment or most-favored-nation treatment basis, whichever is better.
5. A Party may adopt or maintain a measure under this Article that gives priority to services that are essential to its economic program, provided that a Party may not impose a measure for the purposes of protecting a specific industry or sector, unless the measure is consistent with paragraph 3 (c), and with Article VIII (3) of the Articles of Agreement of the International Monetary Fund.
6. The restrictions imposed on transfers must: (a) be consistent with Article VIII (3) of the Articles of Agreement of the International Monetary Fund, when they are applied to payments for current international transactions; and (b) be consistent with Article VI of the Articles of Agreement of the International Monetary Fund and be applied only in conjunction with measures on payments for current international transactions under paragraph 3 (a).

Article 16.05. Disclosure of Information

Nothing in this Agreement shall be construed to require a Party to furnish or allow access to information the disclosure of which would impede law enforcement, or would be contrary to the Party's law protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions.

Article 16.06. Taxation

1. Except as set out in this Article, nothing in this Agreement shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency.
3. Notwithstanding paragraph 2:
(a) Article 3.03 (National Treatment) and such other provisions of this Agreement as are necessary to give effect to that Article shall apply to taxation measures to the same extent as does Article III of the GATT 1994; and
(b) Article 3.12 (Export Taxes) shall apply to taxation measures.
4. For purposes of this Article, taxation measures do not include:
(a) a customs duty as defined in Chapter 2 (General Definitions); nor
(b) the measures listed in exceptions (b), (c), and (d) to that definition.
5. Subject to paragraph 2:
(a) Articles 10.03 (National Treatment) and 11.03 (National Treatment) shall apply to the taxation measures on income, capital gains or on the taxable capital of enterprises that relate to the purchase or consumption of particular services; and
(b) Articles 10.03 (National Treatment) and 10.04 (Most Favored Nation Treatment); 11.03 (National Treatment) and 11.04 (Most Favored Nation Treatment); shall apply to all taxation measures, other than those on income, capital gains or on the taxable capital of enterprises, taxes on estates, inheritances, and donations, except that nothing in those Articles shall apply:
(i) to any most-favored-nation obligation with respect to an advantage accorded by a Party pursuant to any tax convention;
(ii) to any existing taxation measure which provides different tax treatment between residents and non-residents;
(iii) to a non-conforming provision of any existing taxation measure;
(iv)to the continuation or prompt renewal of a non-conforming provision of any existing taxation measure;
(v) to an amendment to a non-conforming provision of any existing taxation measure to the extent that the amendment does not decrease its conformity, at the time of the amendment, with any of those articles; or
(vi) to the adoption or enforcement of any new taxation measure aimed at ensuring the equitable or effective imposition or collection of taxes and does not arbitrarily discriminate among persons, goods or services of the Parties, or arbitrarily nullify or impair advantages granted by those articles, in the sense of Annex 15.02 (Nullification or Impairment).

Chapter 17. Cooperation

Article 17.01. Purpose

1. The main purpose of this Chapter is to establish guidelines in which the Government of the Republic of China (Taiwan) shall strengthen its cooperation relations with the Governments of the Republic of El Salvador and the Republic of Honduras, reaffirming its importance in the economic, financial and technical areas, as an instrument to contribute to the accomplishment of the objectives and the principles derived from this Agreement.
2. In every cooperation measure initiated under this Agreement, the Parties must take into account the need to protect, preserve, and improve their environment and natural resources.

Article 1702. Specific Purposes

The specific purposes of this Chapter are the following:
(a) strengthen and diversify the cooperation activities between the Parties;
(b) strengthen the cooperation in order to develop, improve, intensify and diversify commercial relationships;
(c) strengthen and diversify financing sorts for development;
(d) promote a propitious environment for the development of micro, small, and medium enterprises, and for the development of exportable offer;
(e) improve the capacity of public and private sectors to profit from the opportunities provided by this Agreement; and
(f) contribute to the creation of trade, financial and technological flows and investment between the Parties.

Article 17.03. Dispute Settlement

None of the provisions under this Chapter shall apply to the dispute settlement mechanism established in Chapter 15 (Dispute Settlement).

Article 1704. Cooperation Activities

1. The Parties may initiate and carry out various types of cooperation activities, including the participation of experts, national and international institutions, as considered appropriate, to promote the accomplishment of the purposes and to fulfill the obligations under this Agreement.
2. Nothing under this Chapter, shall preclude the Parties from establishing bilateral cooperation relations and cooperation linkages in other areas.
3. The cooperation activities shall be carried out taking into account:
(a) the economic, financial, environmental, geographical, social, technological, cultural, and legal differences between the Parties;
(b) national priorities agreed upon by the Parties;
(c) the advisability to prevent duplication of existing cooperation activities; and
(d) the intention of the Parties to develop and implement cooperation activities through different initiatives.

Article 17.05. Commercial and Industrial Cooperation

1. The Parties shall support and encourage measures to develop and strengthen actions aiming to institute a dynamic and integrated management of the commercial and industrial cooperation in order to create favorable conditions for economic development while acknowledging the mutual interests of the Parties.
2. Such cooperation shall focus particularly on the following:
(a) promote trade flows and investments among companies of the Parties;
(b) promote cooperation projects in areas of market information and market research; technological information, creation of technological and competitiveness databases in the fields of quality and technology; production, administration, and commercialization of exporting companies and companies with exporting potential; as well as the promotion of technology transfer;
(c) support the education and training of human resources on international trade, quality, productivity, innovation, and technological development; and free trade zones management; and
(d) strengthen contacts among economic agents of the Parties, to detect commercial and technical opportunities, with the purpose of identifying and exploring areas of mutual commercial interest to increase trade, investment, industrial cooperation, and projects of technology transfer and the improvement of quality and productivity.

Article 17.06. Cooperation In the Micro, Small-and-medium Enterprises Sector

1. The Parties will promote a propitious environment for the development of the micro, small-and-medium enterprises.
2. This cooperation will focus on the following:
(a) promote business partnership and the creation of information networks to enable the development of the micro, small-and-medium enterprises;
(b) support research and studies that extend, promote, and facilitate the financing and operating of programs and projects for the development of competitiveness of the micro, small-and-medium enterprises, with the purpose of increasing the commercial trade;
(c) support the improvement of business environment, especially related to aspects of policies and norms that aim for the competitive development of the micro, small-and-medium enterprises; and (d) promote the adoption of new technologies in micro, small-and-medium enterprises to update their company management, extend their markets, and facilitate the fulfillment of their obligations.

Article 17.07. Cooperation In the Matter of Exportable Offer

1. The Parties will create a cooperation program, aiming to carry out studies on exportable offer and on inactive production capabilities, as well as identifying potential investment areas, joint investments, and strategic alliances that shall enable and diversify the trade flows between the Parties and towards other markets.
2. The Parties will also create cooperation programs in exportable offer and on potential export capabilities, taking into account:
(a) support to diversify, reconvert, and strengthen productive sectors, exporters and sectors with potential export capabilities for technology transfer;
(b) support projects and/or programs to strengthen innovation, competitiveness, and development of the productive sectors, exporters, and those with potential export capabilities; and
(c) the cooperation for the execution of strategies, programs, and projects that contribute to increasing, diversifying, and improvement of product quality and harmlessness of products, through technical training, consulting services, and technology transfers.

Article 17.08. Cooperation In the Matter of Tourism

1. The main objective for the cooperation between the Parties in the matter of tourism is to improve the exchange of information, in order to adjust practices in this topic to achieve a balanced and sustainable development of tourism. 2. For the purposes of this Article, the Parties will focus particularly on the following:
(a) respecting the integrity and interests of the local communities;
(b) promoting investment and joint investments that may allow the expansion of tourism;
(c) exchanging of information regarding tourism development;
(d) providing support in the fields of statistics and information technology, as well as for the creation of business databases;
(e) education and training;
(f) organization of activities and events and the participation in tourism trade fairs;
(g) cooperation on feasibility studies; and
(h) support for the commercial promotion agreed by the Parties for the micro, small-and-medium enterprises in the tourism sector.

Article 17.09. Cooperation In the Matter of Energy

1. The objective of the cooperation between the Parties will be the development of their corresponding energy sectors, focusing on the promotion of technology transfer and sectorial regulation.
2. The cooperation in this field will be carried out, mainly, by means of exchanges of information, training of human resources, technology transfers, and joint projects for technological development and infrastructure projects agreed upon by the Parties; as well as the design of more efficient energy generation processes, the rational use of energy, support for the use of alternative and renewable energies that protect the environment, and the promotion of recycling projects and waste treatment for energy use.
3. Grant cooperation to the institutions in charge of energy issues and formulation of energy policies.

Article 17.10. Cooperation In the Matter of Transportation, Logistics, and Distribution

1. The cooperation between Parties regarding transportation matters will seek to:
(a) support the improvement and update of the systems of transportation, logistics, and distribution, according to the ability of the Parties;
(b) promote management norms; and
(c) promote operational norms.
2. For the purposes of this Article, the Parties will give priority to:
(a) the exchange of information between experts regarding the respective transportation, logistics, and distribution policies and other topics of common interest;
(b) cooperation to support the improvement and update of any type of transportation system; and
(c) technology transfers as essential support for the update and improvement of the transportation system.
3. The Parties will study all aspects regarding the exchanges of information on registries and the different types of international services of maritime transportation, logistics, and distribution, in order to prevent them from becoming barriers to mutual trade expansion.

Article 17.11. Cooperation In the Matter of Agriculture, Forestry, Aquaculture, and Fishing

1. The objective of the cooperation in this field is to support and promote strategies, actions, and policy measures in the areas of agriculture, forestry, aquaculture, and fishing and animal and plant health inspection, that allow the consolidation of the efforts of the Parties in the achievement of extensive rural development.
2. Each Party could facilitate the other Parties, in providing counseling, information and technical cooperation, in terms and conditions mutually agreed, to strengthen the communication of the application, administration and regulation of the sanitary and phytosanitary measures, as well as the procedures and systems on these matters.
3. For the purposes of this Article, the Parties will make efforts in the following areas, but not limited thereto:
(a) diversification, adjustment, and improvement of the competitiveness of the agricultural, aquaculture, forestry, and fishing subsectors;
(b) mutual information exchanges, including reference to the development of policies in farming, forestry, animal and plant health inspection;
(c) cooperation to support the process of technological innovation, subsectorial competitiveness, productivity, and the exchange of alternative agricultural technologies;
(d) technical and scientific experiments;
(e) measures intended to increase the quality of farming and agricultural products, and to support trade promotion; (f) cooperation to strengthen the application, administration, and regulation of the standards related to sanitary, phytosanitary and food safety; and
(g) cooperation to support development activities in human and technical resources in institutions.