Title
TRADE PARTNERSHIP AGREEMENT BETWEEN THE REPUBLIC OF ECUADOR AND THE REPUBLIC OF COSTA RICA
Preamble
PREAMBLE
The Government of the Republic of Ecuador, on the one hand, and the Government of the Republic of Costa Rica, on the other hand, determined to:
STRENGTHEN the special ties of friendship and cooperation between them and promote regional economic integration;
EXPAND trade through greater international cooperation and strengthening of relations between their peoples for mutual benefit;
PURPOSE the creation of a larger and more secure market for goods and services produced in their respective territories and a stable and predictable environment for investment, thereby improving the competitiveness of their firms in global markets;
PROMOTE comprehensive economic development to reduce poverty;
PROMOTE the creation of new employment opportunities, and improve working conditions and living standards in their respective territories;
RECOGNIZE the importance of inclusive trade and small and medium-sized enterprises in international trade;
ESTABLISH clear and mutually beneficial rules governing their commercial exchange; CREATE a common framework of principles and rules for their bilateral trade in government procurement, with a view to its expansion under transparent conditions and as a means of promoting economic growth;
ENSURE a predictable legal and commercial framework for business and investment; RECOGNIZE that the promotion and protection of investments of one Party in the territory of the other Party will contribute to an increase in the flow of investments and stimulate mutually beneficial business activity;
FACILITATE contacts between the companies and private sectors of the Parties;
AVOID distortions in their reciprocal trade;
STRENGTHEN the competitiveness of its companies in global markets and seek greater insertion in global and regional value chains.
FACILITATE trade by promoting efficient and transparent customs procedures that ensure predictability for importers and exporters;
STIMULATE creativity and innovation and promote trade in the innovative sectors of their economies;
PROMOTE the protection and preservation of the environment and the contribution of trade to sustainable development
PROMOTE transparency in international trade and investment;
PRESERVE its ability to safeguard the public welfare;
REAFFIRM the objective of eliminating unnecessary barriers to trade, in order to generate greater dynamism in the flow of trade in goods and services and investment between the Parties and;
EXERCISE their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization, as well as other bilateral, regional and multilateral international integration and cooperation instruments to which they are party;
HAVE AGREED to enter into this Trade Partnership Agreement in accordance with the following:
Body
Chapter 1. Initial Provisions and General Definitions
Section A. Initial Provisions
Article 1.1. Establishment of the Free Trade Zone
The Parties to this Agreement, in accordance with Article XXIV of the WTO General Agreement on Tariffs and Trade 1994 and Article V of the WTO General Agreement on Trade in Services, establish a free trade area.
Article 1.2. Objectives
1. The objectives of this Agreement are as follows:
(a) stimulate the expansion and diversification of trade between the Parties;
(b) eliminate unnecessary barriers to trade and facilitate the cross-border movement of goods and services between the Parties;
(c) facilitate trade in goods through, in particular, the implementation of agreed customs and trade facilitation provisions, standards, technical regulations and conformity assessment procedures, and sanitary and phytosanitary measures;
(d) promote conditions of free competition in the free trade zone;
(e) support the deepening of relations between productive sectors, taking into account the special needs of MSMEs, in order to achieve inclusive trade;
(f) increase investment opportunities in the territories of the Parties;
(g) adequately and effectively protect and enforce intellectual property rights in the territory of each Party, taking into consideration the balance of rights and obligations arising therefrom;
(h) create effective procedures for the implementation and enforcement of this Agreement, for its joint administration, and for preventing and resolving disputes; and
(i) promote the effective and reciprocal opening of the Parties' government procurement markets.
Article 1.3. Relationship to other International Agreements
1. The Parties confirm the rights and obligations existing between them pursuant to the WTO Agreement and other agreements to which the Parties are parties.
2. Unless otherwise provided in this Agreement, if a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement to which the Parties are parties, such Party shall request consultations (1) with a view to reaching a mutually satisfactory solution. This paragraph is without prejudice to the rights and obligations of the Parties under Chapter 24 (Dispute Settlement).
Article 1.4. Interpretation of the Agreement
The Parties shall perform and interpret this Agreement in good faith and in accordance with customary rules of interpretation of public international law, including the Vienna Convention on the Law of Treaties.
Article 1.5. Scope of Obligations
Each Party shall ensure the adoption of all necessary measures to give effect to the provisions of this Agreement in its territory and at all levels of government.
Section B. General Definitions
Article 1.6. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
WTO TRIPS Agreement means the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (2), which is part of the WTO Agreement}
WTO Antidumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 of the WTO, which forms part of the WTO Agreement,
WTO Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 of the WTO, which forms part of the WTO Agreement;
WTO GATS means the WTO General Agreement on Trade in Services, which is part of the WTO Agreement;
WTO SPS Agreement means the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, which is par. WTO Agreement;
WTO TBT Agreement means the WTO Agreement on Technical Barriers to Trade, which is part of the WTO Agreement;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated April 15, 1994;
WTO Agreement on Safeguards means the WTO Agreement on Safeguards. of the WTO, which is part of the WTO Agreement,
WTO Subsidies Agreement means the WIO Agreement on Subsidies and Countervailing Measures, which forms part of the WTO Agreement;
customs duty means any import tax or duty and charge of any kind levied in connection with the importation of goods, including any form of surcharge or additional charge on imports, except any:
(a) charge equivalent to an internal tax established in accordance with Article III.2 of GAIT 1994;
(b) anti-dumping duty or countervailing measure that is applied in accordance with a Party's domestic law and in conformity with Article VI of the GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures and the WTO Agreement on Implementation of Article VI of the GATT 1994; or
(c) duty or other charge related to the importation, proportional to the cost of the services rendered;
customs authority means the authority which, in accordance with the respective laws of each Party, is responsible for administering and enforcing the customs laws and regulations, as appropriate:
(a) for Costa Rica, to the National Customs Service, or its successor; and
(b) for Ecuador, to the National Customs Service of Ecuador, or its successor; Chapter means the first two digits of the Harmonized System tariff classification code;
Commission means the Administrative Commission established pursuant to Chapter 23 (Administration of the Agreement);
procurement means the process by which a government acquires the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or with a view to use in the production or supply of goods or services for commercial sale or resale;
days means calendar days;
corporation means any entity organized or organized under applicable law, whether or not for profit, or whether privately or governmentally owned, including corporations, trusts, partnerships, sole proprietorships, joint ventures, and other forms of associations;
existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 of the WTO, which is part of the WTO Agreement;
measure includes any law, regulation, procedure, requirement or practice; merchandise means any product, article or material;
good of a Party means domestic products as understood in the GATT 1994 or such goods as the Parties may agree, and includes goods originating in that Party. A good of a Party may incorporate materials from a non-Party;
originating good means that it qualifies under the rules of origin set out in Chapter 3 (Rules of Origin and Origin Procedures);
MSMEs stands for Micro, Small and Medium-Sized Enterprises (3),
national means a natural person who has the nationality of a Party in accordance with Annex 1.1 or a permanent resident of a Party;
WTO means the World Trade Organization,
Party means the Republic of Costa Rica, on the one hand, and the Republic of Ecuador, on the other hand, jointly referred to as the Parties;
heading means the first four digits of the Harmonized System tariff classification code; person means a natural person or a company;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and applied by the Parties in their respective legislation;
subheading means the first six digits of the tariff classification code under the Harmonized System;
territory means, for a Party, the territory of that Party as set forth in Annex 1.1; and
preferential tariff treatment means the tariff applicable under this Agreement to an originating good.
The company's activities are based on relationships of solidarity, cooperation and reciprocity, privileging work and the human being as the subject and purpose of its activity, oriented towards good living, in harmony with nature, over appropriation, profit and capital accumulation.
Annex 1.1. Country-Specific Definitions
For the purposes of this Agreement, unless otherwise specified herein:
government at the central level means:
(a) for Costa Rica, the national level of government; and
(b) for Ecuador, the central level of government;
government at the local level means:
(a) for Costa Rica, the municipalities; and
(b) for Ecuador, the decentralized autonomous governments;
natural person who has the nationality of a Party means:
(a) for Costa Rica, a Costa Rican as defined in Articles 13 and 14 of the Political Constitution of the Republic of Costa Rica; and
(b) for Ecuador, an Ecuadorian as defined in Articles 7 and 8 of the Constitution of the Republic of Ecuador;
Territory (4) means:
(a) for Costa Rica, the national territory including air and maritime space, where the State exercises complete and exclusive sovereignty or special jurisdiction in accordance with Articles 5 and 6 of the Political Constitution of the Republic of Costa Rica and International Law; and
(b) for Ecuador, the continental and maritime space, the adjacent islands, the territorial sea, the Galapagos Archipelago, the soil, the submarine platform, the subsoil and the overlying continental, insular and maritime space, and the respective air spaces, over which it exercises sovereignty and jurisdiction in accordance with international law and its internal legislation.
Chapter 2. National Treatment and Market Access for Commodities
Article 2.1. Scope of Application
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Section A. National Treatment
Article 2.2. National Treatment
1. Each Party shall accord national treatment to goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes, and to this , Article III of the GATT 1994 and its interpretative notes are incorporated into and made an integral part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to measures listed Annex 2.2.
Section B. Tariff Elimination
Article 2.3. Tariff Elimination
1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any new customs duty, on a good originating in the other Party.
2. Except as otherwise provided in this Agreement, each Party shall eliminate its customs duties on originating goods of the other in accordance with Annex 2.3.
3. The tariff elimination program provided for in this Chapter shall not apply to used goods, including goods that are identified as such in headings or subheadings of the Harmonized System. Used goods also include goods that have been rebuilt, remanufactured, remanufactured or any other similar appellation given to goods that after having been used have undergone some process to restore them to their original characteristics or specifications, or to restore them to the functionality they had when new.
4. At the request of any Party, consultations shall be held to consider the improvement of tariff conditions for market access in accordance with Annex 2.3.
5. Notwithstanding Article 23.1 (The Administrative Commission), an agreement between the Parties to improve the tariff conditions for market access for a good shall prevail over any customs duty or category defined in Annex 2.3 for such good, when approved by the Parties in accordance with their applicable legal procedures.
6. For greater certainty, a Party may:
(a) increase a customs duty to the level set out in Annex 2.3, following a unilateral reduction; or
(b) maintain or increase a customs tariff when authorized by the WTO Dispute Settlement Body.
Section C. Special Regimes
Article 2.4. Exemption from Customs Duties
1. No Party may adopt a new exemption from customs duties, or extend the application of an existing exemption from customs duties with respect to existing beneficiaries, or extend it to new beneficiaries, where the exemption is conditioned, explicitly or implicitly, on compliance with a performance requirement.
2. No Party may condition, explicitly or implicitly, the continuation of any existing customs duty exemption on compliance with a performance requirement.
Article 2.5. Temporary Admission of Goods
1. Each Party shall authorize temporary admission free of customs duties for the following goods, irrespective of their origin:
(a) professional equipment, including equipment for scientific research, medical activities, press or television, computer software, and broadcasting and cinematographic equipment necessary for the exercise of the business, trade or profession of a person who qualifies for temporary entry under the national legislation of the importing Party;
(b) goods intended for display or demonstration at exhibitions, fairs, meetings or similar events;
(c) commercial samples, films and advertising recordings; and
(d) goods admitted for sporting purposes.
2. Goods entered under the temporary admission regime shall be subject to compliance with the terms established in the national legislation of each of the Parties.
3. No Party may condition the temporary duty-free admission of a good referred to in paragraph 1 on conditions other than that the good:
(a) is used solely by or under the personal supervision of a national or resident of the other Party in the exercise of that person's business, trade, professional or sporting activity;
(b) is not subject to sale or lease while it remains in its territory;
(c) is accompanied by a bond or guarantee in an amount not exceeding the charges that would otherwise be due for entry or final importation, refundable at the time of departure of the merchandise;
(d) is susceptible to identification when exported;
(e) is exported upon the departure of the person referred to in subparagraph (a), or within a period corresponding to the purpose of the temporary admission that the Party may establish, or within one year;
(f) is admitted in quantities no greater than is reasonable in accordance with its intended use; and
(g) otherwise admissible in the territory of the Party in accordance with its national legislation.
4. If any of the conditions imposed by a Party under paragraph 3 have not been met, the Party may apply the customs duty and any other charges that would normally be due on the good, plus any other charges or penalties established accordance with its national legislation.
5. Each Party shall adopt and maintain procedures to facilitate the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such merchandise accompanies a national or resident of the other Party who is requesting temporary entry, the merchandise shall be cleared simultaneously with the entry of that national or resident.
6. Each Party shall allow a good temporarily admitted under this Article to be exported through a customs port other than the port through which it was admitted.
7. In accordance with its national legislation, each Party shall provide that the importer or other person responsible for a good admitted in accordance with this Article shall not be responsible for the impossibility of exporting the good, upon presenting satisfactory evidence to the importing Party that the good has been destroyed within the original time limit set for temporary admission.
8. Subject to Chapter 10 (Cross-Border Trade in Services) and Chapter 15 (Investment), no Party may:
(a) prevent a vehicle or container used in international transportation that has entered its territory from the other Party from leaving its territory by any route that has a reasonable relation to the prompt and economic departure of such vehicle or container;
(b) The port of entry of the vehicle or container is different from the port of departure, and no bond shall be required and no penalty or charge shall be imposed solely on the grounds that the port of entry of the vehicle or container is different from the port of departure;
(c) condition the release of any obligation, including any bond, which it has applied to the entry of a vehicle or container into its territory, to its departure through a particular port; and
(d) require that the vehicle or carrier bringing a container into its territory from the territory of the other Party be the same vehicle or carrier that brings it into the territory of the other Party.
9. For the purposes of paragraph 8, vehicle means a truck, tractor-trailer, tractor, trailer or trailer unit, locomotive or wagon or other railway equipment.