2. The Parties recognize that it is not their intention in this Chapter to harmonize their labor standards, but to strengthen their trade relations and cooperation in a manner that promotes sustainable development.
3. The objectives of this Chapter are:
(a) promote the common aspiration that free trade and investment should lead to job creation and decent work, on terms and conditions of employment that adhere to the principles of the 1998 International Labour Organization Declaration on Fundamental Principles and Rights at Work and its Follow-up (hereinafter "ILO Declaration");
(b) foster and achieve a better understanding of each Party's labor systems, good labor policies and practices, and enhanced capacity of each Party, including its relevant stakeholders, through increased cooperation and dialogue;
(c) to promote the improvement of labor conditions in the respective territories of the Parties and to protect, improve and enforce the fundamental rights of workers;
(d) allow for discussion and exchange of views on labor matters of mutual interest, without prejudice to the labor legislation of each Party;
(e) strengthen the commitment of the Parties to the effective dissemination and implementation of their national legislation;
(f) to seek the participation of social actors in the development of public agendas through social dialogue.
Article 21.2. General Principles and Commitments
1. The Parties reaffirm their obligations as members of the International Labor Organization (hereinafter "ILO") and their commitments under the ILO Declaration. Each Party shall endeavor to adopt and maintain, both in its national legislation and in its practices, the following rights set forth in the ILO Declaration:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labor;
(c) the effective abolition of child labor; and
(d) elimination of discrimination in respect employment and occupation.
2. Each Party shall respect the sovereign right of the other Party to establish its own national policies and priorities, as well as to establish, administer and enforce its own labor laws and practices in accordance with its policies and priorities.
3. No Party shall encourage trade or investment by reducing the levels of protection afforded by its labor laws. Accordingly, no Party shall cease to apply, or otherwise render ineffective, its labor legislation in a manner that reduces the protection afforded under such legislation in order to encourage trade or investment.
4. Each Party shall ensure that its labor legislation, policies and practices shall not be used for protectionist trade purposes.
5. The Parties recognize that each Party retains the right to exercise its discretion with respect to the distribution of resources allocated to the enforcement of its labor laws, and to make decisions with respect to the allocation of resources allocated to the enforcement of its labor laws.
6. Nothing in this Chapter shall be construed to empower the authorities of a Party to carry out labor law enforcement activities in the territory of the other Party.
Article 21.3. Procedural Safeguards and Public Awareness
1. Each Party shall ensure that persons with a recognized interest in a particular matter under its labor laws have adequate access to tribunals for the enforcement of its labor laws. Such tribunals may be administrative, judicial or labor tribunals.
2. Each Party shall ensure that the procedures before such tribunals for the enforcement of its labor laws are fair, equitable and transparent.
3. Each Party shall promote public awareness of its labor laws, policies and practices in its country and may develop mechanisms, as appropriate, to inform the public of its labor laws, policies and practices.
The Company shall inform the public about the activities undertaken under this Chapter in accordance with its laws, policies and labor practices.
4. The Parties recognize the desirability of clear, well understood and widely consulted labor legislation, policies and practices.
Article 21.4. Focal Points
Each Party shall designate a focal point for labor issues for the implementation of this Chapter. After the date of entry into force of this Agreement, the Parties shall provide their contact information and notify in a timely manner.
Article 21.5. Labor Committee
1. The Parties establish a Labor Committee (hereinafter referred to as "the Committee"). The Committee shall be composed of senior officials from the Ministry of Labor and other relevant ministries of each Party.
2. The functions of the Committee shall include:
(a) establish an agreed work program of cooperative activities;
(b) monitor and evaluate the agreed cooperation activities;
(c) serve as forum for dialogue on labor issues of mutual interest;
(d) evaluate the operation and results of this Chapter; and
(e) take any other action it deems appropriate for the implementation of this Chapter.
3. Unless otherwise agreed by the Parties, the Committee shall meet within two years after the date of entry into force of this Agreement, and thereafter as necessary, to discuss matters of common interest and oversee the implementation of this Chapter, including the cooperative activities set forth in Article 21.6. The meetings may be held in person or by any technological means.
Article 21.6. Public Participation
1. The Parties recognize the importance of tripartite participation by business, labor and government during dialogue processes to address trade-related labor issues.
2. Each Party shall endeavor to respond to requests for information from persons regarding trade-related labor issues within the framework of the provisions of this Chapter.
3. Each Party shall make use of the dialogue established within the Committee to seek views on matters related to the implementation of this Chapter and requests for information received.
Article 21.7. Forced or Compulsory Labor
Each Party recognizes the importance of establishing actions to eliminate all forms of forced or compulsory labor, including forced or compulsory child labor. Accordingly, the Parties agree to identify opportunities for cooperation to exchange information, experiences and good practices in this area.
Article 21.8. Consultations
1. Any issues arising in connection with the implementation of this Chapter shall be resolved amicably and in good faith by the Parties through direct dialogue, consultation and cooperation.
2. A Party may request consultations by delivering a written request to the other Party's focal point designated in Article 21.4, explaining the reasons for the consultations.
3. If the Parties, through their focal points, are able to resolve the matter, they shall document the outcome including, if appropriate, the specific steps and timelines agreed. The Parties, through their focal points, shall prepare a consensus report summarizing the outcome of the consultations held and make it publicly available, unless they agree otherwise.
4. If the Parties do not reach consensus on the matter in consultation through the focal points, the matter may be discussed by the Committee.
Article 21.9. Cooperation
1. The Parties recognize the importance of cooperation as a mechanism to effectively implement this Chapter, increase opportunities to improve labor standards, and further advance common commitments on labor issues, including the welfare and quality of life of workers and the principles and rights set forth in the ILO Declaration.
2. The Parties undertake to establish a close relationship by means of cooperative activities in areas of mutual interest, in accordance with the provisions of paragraphs 3 and 4, for the purpose of furthering the objectives of this Chapter and improving understanding of the labor system of the other Party.
3. Areas of cooperation between the Parties under this Chapter may include, but shall not be limited to:
(a) labor policies of mutual interest;
(b) labor-management relations;
(c) working conditions;
(d) occupational health and safety;
(e) vocational training and human resource development;
(f) labor statistics; and
(g) other labor matters that the Parties may agree upon in accordance with their labor laws.
4. Cooperative activities may be implemented through a variety of means, which may include, but are not limited to:
(a) organize study visits and other exchanges between government delegations, professionals, students and specialists;
(b) exchange information on legislation and good labor practices;
(c) jointly organize conferences, seminars, workshops, meetings, training sessions and outreach and education programs;
(d) develop joint projects or presentations;
(e) engage in joint research projects, studies, and reports, including through the participation of independent experts with recognized experience; and
(f) other forms of exchange or technical cooperation that the Parties may agree upon.
5. Any cooperative activity agreed under paragraph 3 shall consider the priorities and labor needs of each Party, as well as available resources.
6. Each Party may, as appropriate, invite the participation of stakeholders, including representatives of workers and employers, other persons and organizations in its country to identify potential areas of cooperation, and to carry out cooperative activities.
7. In addition to the cooperative activities outlined in this Article, the Parties shall, as appropriate, join and take advantage of their respective memberships in regional and multilateral fora to promote their common interests in addressing labor issues.
Article 21.10. Non-Application of Dispute Resolution
Neither Party may have recourse to the dispute settlement mechanism provided for in Chapter 24 (Dispute Settlement) with respect to any matter arising under this Chapter.
Chapter 22. Transparency
Article 22.1. Points of Contact
1. Each Party establishes a contact point in Annex 22.1 to facilitate communications between the Parties on any matter covered by this Agreement.
2. At the request of the other Party, the contact point shall indicate the office or official responsible for the matter and provide such support as may be necessary to facilitate communication with the requesting Party.
Article 22.2. Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application that relate to any matter covered by this Agreement are promptly published or otherwise made available for the information of interested persons and of the other Party.
2. To the extent possible, each Party:
(a) publish any measure referred to in paragraph 1 which it proposes to adopt relating to matters covered by this Agreement; and
(b) provide interested persons and the other Party with a reasonable opportunity to comment on such measures.
Article 22.3. Notification and Provision of Information
1. To the fullest extent possible, each Party shall notify the other Party of any proposed or existing measures that it believes may materially affect the operation of this Agreement or otherwise substantially affect the interests of the other Party under this Agreement.
2. Upon request of the other Party, a Party shall provide information and respond promptly to questions regarding any measure in force or planned, whether or not that other Party has been previously notified of that measure.
3. Any notification or provision of information provided under this Article shall be without prejudice to whether or not the measure is consistent with this Agreement.
4. Any notification, request or information under this Article shall be provided to the other Party through the relevant contact points, unless otherwise agreed by the Parties.
Article 22.4. Administrative Procedures
In order to administer in a consistent, impartial and reasonable manner all administrative rulings of general application matters covered by this Agreement, each Party shall ensure that, in its administrative proceedings in which the measures referred to in Article X are applied with respect to particular persons, goods or services of the other Party in specific cases:
(a) whenever possible, persons of the other Party who are directly affected by a proceeding shall, in accordance with domestic law, be given reasonable notice of the commencement of the proceeding, including a description of its nature, a statement of the legal basis under which the proceeding is initiated, and a general description of all matters in dispute;
(b) where time, the nature of the proceeding and the public interest permit, such persons are given a reasonable opportunity to present facts and arguments in support of their claims prior to any final administrative action; and
(c) its procedures are in accordance with national legislation.
Article 22.5. Review and Challenge
1. Each Party shall establish or maintain courts or tribunals or procedures of a judicial or administrative nature for the purpose of the prompt review and, where warranted, correction of final administrative actions relating to matters covered by this Agreement. Such tribunals shall be impartial and not connected with the administrative agency or authority, and shall have no substantial interest in the outcome of the matter.
2. Each Party shall ensure that, before such courts or proceedings, the parties to proceedings have the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a ruling or decision based on the evidence and arguments or, in cases where required by the national legislation of the Party, on the record compiled by the administrative or judicial authority.
3. Each Party shall ensure that, subject to the means of challenge or further review available under its domestic law, such rulings or decisions are implemented by its agencies or authorities and govern the practice of those agencies or authorities with respect to the administrative action in question.
Article 22.6. Specific Standards
The provisions of this Chapter are without prejudice to the specific rules established in other Chapters of this Agreement.
Article 22.7. Definitions
For the purposes of this Chapter:
administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and factual situations that generally fall within its scope, and that establishes a standard of conduct, but does not include:
(a) tulings or decisions in an administrative proceeding that applies to a particular person, good or service of the other Party in a specific case; or
(b) a resolution that resolves with respect to a particular act or practice.
Annex 22.1. Points of Contact
For the purposes of Article 22.1, the points of contact shall be:
(a) for Costa Rica, the Director General of Foreign Trade of the Ministry of Foreign Trade, his delegate or successor; and
(b) for Ecuador, the Undersecretariat of Trade Negotiations of the Ministry of Production, Foreign Trade, Investments and Fisheries, its delegate or successor.
Chapter 23. Administration of the Agreement
Article 23.1. The Administrative Commission
1, The Parties establish the Administrative Commission, composed of representatives at the Ministerial level of each Party, in accordance with Annex 23.1, or by the persons designated by them.
2. The Commission shall:
(a) to ensure compliance with and the correct application of the provisions of this Agreement;
(b) monitor the implementation of this Agreement and evaluate the results achieved in its application;
(c) supervise the work of all bodies established under this , including committees and working groups;
(d) approve at its first meeting, unless the Parties agree otherwise, Rules of Procedure and Code of Conduct referred to Chapter 24 (Dispute Settlement);
(e) fix the amount of remuneration and expenses to be paid to the members of the panels referred to in Chapter 24 (Dispute Settlement);
(f) to hear any other matter that could affect the operation of the Agreement; and
(g) approve its rules of procedure at its first meeting, unless the Parties agree otherwise.
3. The Commission may:
(a) establish and delegate responsibilities to the bodies established under this Agreement;
(b) adopt, in compliance with the objectives of this Agreement, decisions to:
(i) modify the Schedules established in Annex 2.3 (Tariff Elimination Program) by improving the tariff conditions for market access, which includes the possibility to accelerate tariff elimination and include one or more excluded goods in the Tariff Elimination Program;
(ii) modify the rules of origin set forth in Annex 3.1 (Specific Rules of Origin), Annex 3.16 (Certificate of Origin) and Annex 3.16 (Certificate of Origin). 3.17 (Statement of Origin); and
(iii) Amend Exhibit 17.1 (Coverage Exhibit - public procurement);
(iv) modify its rules of procedure;
(v) modify the Rules of Procedure and Code of Conduct referred to in Chapter 24 (Dispute Resolution); and
(vi) issue interpretations of the provisions of this Agreement;
(c) recommend to the Parties the revision, for further deepening, of the lists of Annexes I, II and III referred to in Chapters 10 (Cross-Border Trade in Services), 11 (Financial Services) and 15 (Investment);
(d) analyze any amendments to this Agreement in order to make a Recommendation to the Parties;
(e) review the impacts of the Agreement on the micro, small and medium-sized enterprises of the Parties;
(f) seck the advice of non-governmental individuals or groups; and
(g) take any other action for the exercise of its functions as agreed by the Parties.
4. Each Party shall implement, in accordance with its national law, any decision to in subparagraph 3(b), within the period agreed by the Parties and in accordance with the procedure set out in Annex 23.1.4.
5. All decisions of the Commission and the bodies established pursuant to this Agreement shall be adopted by mutual agreement.
6. The Commission shall hold its first regular meeting within the first year of effectiveness of this Agreement.
7. The Commission shall meet every two years in ordinary session, on a date mutually agreed upon by the Parties, unless they decide otherwise.
8. The meetings of the Commission may be held in person or by any technological means and shall be chaired successively by each Party.
9. Regular meetings held in person shall be held at least in the territory of each Party, unless otherwise agreed by the Parties.
10. Any of the Parties may request in writing that an extraordinary meeting of the Commission be convened. When such meetings are held in person, the Parties shall agree on the place and date on which the Commission shall meet.
Article 23.2. Agreement Coordinators
1. Each Party shall designate an agreement coordinator, in accordance with Annex 23.3.
2. The Coordinators shall work jointly on the development of agendas, as well as on other preparations for the meetings of the Commission and shall give appropriate follow-up to the decisions or recommendations of the Commission, as the case may be.
Article 23.3. Administration of Dispute Settlement Procedures
1. Each Party shall:
(a) designate an office to provide administrative support to the panels contemplated in Chapter 24 (Dispute Resolution) and perform other functions at the direction of the Commission; and.
(b) notify the other Party of the address of its designated office.
2. Each Party shall be responsible for the operation and costs of its designated office.
Annex 23.1. The Administrative Commission
The Administrative Commission shall be composed of:
(a) for Costa Rica, by the Minister of Foreign Trade, his delegate or successor; and
(b) for Ecuador, by the Minister of Production, Foreign Trade and Investment, by the Minister of Production, Foreign Trade and Investment, for Ecuador, by the