(a) to adopt, maintain or establish such regulatory measures as they deem appropriate, in accordance with their respective regulatory and administrative procedures and other internationally agreed commitments, with a view to achieving legitimate public policy objectives; or
(b) identify their regulatory priorities in the area and at the levels of government they deem appropriate.
Article 5.5. Establishment of Coordination Processes or Mechanisms
1. The Parties recognize that good regulatory practices can be promoted through effective interagency coordination, so that each Party:
(a) promote the creation and strengthening of internal mechanisms to facilitate effective inter-institutional coordination;
(b) seek to generate internal processes in each competent body for the preparation and review of regulatory measures, aimed at promoting good regulatory practices; and
(c) may establish or maintain coordination processes at the national or central level.
2. The Parties recognize that the processes referred to in paragraph 1 may vary according to their respective circumstances, including differences in political and institutional structures. Nevertheless, the Parties shall seek to:
(a) Encourage that, during the drafting phase of regulatory projects and proposals for regulatory measures, international good regulatory practices are taken into consideration, including those established in Article 5.6;
(b) to strengthen coordination and intensify the exchange of information among national governmental institutions to identify possible duplications and avoid the creation of inconsistent regulatory measures;
(c) promoting good regulatory practice policies on a systematic basis; and
(d) publicly report any proposal to carry out systemic regulatory improvement actions.
Article 5.6. Implementation of Good Regulatory Practices
1. Each Party shall encourage its respective competent regulatory authorities to submit drafis and proposed modifications of regulatory measures to public consultation, for a reasonable period of time, allowing interested parties to comment, in accordance with its legal system.
2. Each Party shall encourage its competent regulatory authorities to conduct, in accordance with its legal system, a regulatory impact analysis (RIA) prior to the adoption and proposed modification of regulatory measures that have a significant economic impact, or, where appropriate, another criterion established by that Party.
3. Recognizing that institutional, social, cultural and legal differences may result in specific regulatory approaches, the regulatory impact assessments conducted should, among other aspects:
(a) identify the problem to be solved, the actors or groups affected, the legal basis for the proposed action, existing international references and the objectives to be achieved;
(b) describe the feasible alternatives to address the identified problem, including the no action option, and outline their potential impacts;
(c) compare the alternatives proposed, pointing out, with justification, the solution or combination of solutions considered most appropriate to achieve the objectives pursued;
(d) be based on the best available scientific, technical, economic or other relevant information available to the respective regulatory authorities within their competence, mandate, capacity and resources; and
(ec) describe the strategy for the implementation of the suggested solution, including forms of monitoring and oversight where appropriate, as well as the need for modification or repeal of existing regulatory measures.
4. Each Party shall encourage its competent regulatory authorities, when developing regulatory measures, to take into consideration international references, to the extent appropriate and consistent with its respective national legislation.
5. Each Party shall promote that the new regulatory measures are clearly written, concise, organized and easy to understand, recognizing the possibility of involving technical issues that require specialized knowledge for their correct understanding and application.
6. Each Party shall endeavor to ensure that its competent regulatory authorities, in accordance with its legal system, facilitate public access to information on draft and proposed regulatory measures and make such information available on the Internet.
7. Each Party shall seek to maintain or establish internal procedures for the review of existing regulatory measures, as often as it deems appropriate, to determine whether they should be modified, expanded, simplified or repealed, with the objective of making its regulatory regime more effective.
8. When conducting regulatory impact assessments, the competent authorities should consider the potential impact of the regulatory proposal on MSMEs.
Article 5.7. Cooperation
1. The Parties shall cooperate in order to properly implement this Chapter and maximize the benefits derived from it. Cooperative activities shall take into account the needs of each Party and may include:
(a) information exchange, dialogues, bilateral meetings or mectings between the Parties and stakeholders, including MSMEs;
(b) training programs, seminars and other technical assistance initiatives;
(c) strengthening cooperation and exchange of experiences on the management of existing regulatory measures and other relevant activities among regulatory authorities; and
(d) exchange of data, information and practices related to the development of new regulatory measures, public consultations, regulatory impact analysis practices, estimation of potential costs and benefits of regulatory measures and practices related to the ex post review of regulatory measures.
2. The Parties recognize that regulatory cooperation depends on a commitment that regulatory measures are developed and made available in a transparent manner.
Article 5.8. Chapter Administration
1. The Parties shall establish focal points, who shall be responsible for following up on issues related to the implementation of this Chapter.
2. The focal points may meet in person or by any available technological means.
3. The Parties shall, every three years after the entry into force of this Agreement, consider the need for a review of this Chapter, in light of the milestones in the area of good regulatory practices at the international level and the experiences accumulated by the Parties.
Article 5.9. Relationship with other Chapters
In the event of any inconsistency between this Chapter and another chapter of this Agreement, the other chapter shall prevail to the extent of the inconsistency.
Article 5.10. 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 6. Sanitary and Phytosanitary Measures
Article 6.1. Scope of Application
This Chapter applies to all sanitary and phytosanitary measures that may directly or indirectly affect trade between the Parties.
Article 6.2. Objectives
The objectives of this Chapter are:
(a) human, animal and plant life and health in the territories of the Parties;
(b) facilitate and increase bilateral trade, avoiding unnecessary trade restrictions; (c) collaborate for a better implementation of the WTO SPS Agreement;
(d) create a Committee to deal in a transparent manner with issues related sanitary and phytosanitary measures;
(e) strengthening communication and collaboration between the competent authorities of the Parties on sanitary and phytosanitary matters; and
(f) promote the continuous improvement of the sanitary and phytosanitary situation of the Parties.
Article 6.3. Reaffirmation of the WTO SPS Agreement
The Parties reaffirm their existing rights and obligations under the WTO SPS Agreement. The Parties recognize and reiterate their commitment to implement the decisions on the implementation of the SPS Agreement adopted by the WTO Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "WTO SPS Committee").
Article 6.4. Rights and Obligations of the Parties
1. The Parties may adopt, maintain or apply their sanitary or phytosanitary measures to achieve an appropriate level of sanitary or phytosanitary protection provided that they are based on scientific principles.
2. The Parties may establish, apply or maintain sanitary or phytosanitary measures with a higher level of protection than that which would be achieved by the application of a measure based on an international standard, guideline or recommendation, provided that there is scientific justification for doing so.
3. Sanitary and phytosanitary measures shall not be applied in a manner that constitutes a disguised restriction on international trade.
Article 6.5. Equivalence
1. The recognition of equivalence of sanitary and phytosanitary measures may be given considering the standards, guidelines and recommendations established by the competent international organizations and the decisions adopted by the SPS Committee of the WTO on the matter.
2. A Party shall accept as equivalent the sanitary or phytosanitary measures of the other Party, even if they differ from its own, provided that they are shown to achieve the other Party's appropriate level of protection, in which case reasonable access for inspections, tests and other necessary procedures shall be provided.
Article 6.6. Risk Assessment and Determination of the Appropriate Level of SPS Protection
1. Sanitary and phytosanitary measures applied by the Parties shall be based on an assessment appropriate to the circumstances of the risks to human, animal or plant life or health, in accordance with Article 5 of the WTO SPS Agreement, taking into account the relevant standards, guidelines and recommendations of the competent international organizations.
2. The establishment of appropriate levels of protection shall take into account the objective of protecting human, animal and plant health, while facilitating trade and avoiding arbitrary or unjustified distinctions that could become disguised restrictions.
3. The Parties shall provide each other with the necessary facilities for the evaluation, when required, of sanitary and phytosanitary services, based on the guidelines and recommendations of international organizations or other procedures mutually agreed upon by the Parties.
Article 6.7. Adaptation to Regional Conditions with Inclusion of Pest- or Disease-Free Areas and Areas of Low Pest or Disease Prevalence
1. In assessing the sanitary or phytosanitary characteristics of a region, the Parties shall take into account, inter alia, the level of prevalence of specific diseases or pests, the existence of eradication or control programs, and appropriate criteria or guidelines that may be developed by competent international organizations.
2. The Parties shall recognize pest- or disease-free arcas and areas of low pest or disease prevalence in accordance with the WTO SPS Agreement, the recommendations and/or guidelines of the World Organization for Animal Health (hereinafter referred to as "OJE") and the International Plant Protection Convention (hereinafter referred to as "IPPC").
3. In determining such areas, the Parties shall consider technical and scientifically justified factors, which provide the necessary evidence to objectively demonstrate to the other Party that such areas are and are likely to remain pest- or disease-free areas or areas of low prevalence. To this end, reasonable access shall be provided, upon request to the other Party, for inspection, testing and other relevant procedures.
4. The Parties recognize the recommendations expressed in the OMSA compartmentalization standards.
5. If a Party does not recognize the determination of pest- or disease-free areas or areas of low pest or disease prevalence made by the other Party, it shall justify the technical and scientific reasons for such refusal in a timely manner.
Article 6.8. Inspection, Control and Approval
The Parties shall establish inspection, control and approval procedures taking into consideration Article 8 and Annex C of the WTO SPS Agreement.
Article 6.9. Transparency
1. The Parties shall apply sanitary and phytosanitary measures in a transparent manner. For these purposes, the Parties shall notify each other of such measures in accordance with Annex B of the WTO SPS Agreement.
2. Additionally, the Parties shall notify each other:
(a) the application of emergency measures within a period not exceeding three days, in accordance with the provisions of Annex B of the WTO SPS Agreement;
(b) in a timely manner any problems that may occur with the imported products from the exporting Party, the measure to adopt and their justifications, through the competent authorities established in Article 6.14;
(c) cases of exotic or unusually occurring pests or diseases; and
(d) updated information at the request of a Party, of the requirements that apply to the importation of specific products, and to inform on the status of the processes and measures in process, with respect to the requests for access of products related to the SPS Agreement of the WTO by the exporting Party.
3. Likewise, the Parties shall make their best efforts to improve mutual understanding of sanitary and phytosanitary measures and their application, and shall exchange information on matters related to the development and application of sanitary and phytosanitary measures, which affect or may affect trade between the Parties, with a view to minimizing their negative effects on trade.
4. Notifications shall be made in writing to the contact points established in accordance with the WTO SPS Agreement. Written notification shall be understood to mean notifications by post, fax or e-mail.
Article 6.10. Cooperation and Technical Assistance
1. The Parties agree to cooperate and provide each other with the technical assistance necessary for the implementation of this Chapter, in order to improve mutual understanding of the Partiesâ regulatory systems and facilitate access to each other's markets.
2. The Parties may develop through the Committee established in Article 6.11 a work program on cooperation and technical assistance on sanitary and phytosanitary measures.
3. The competent authorities of the Parties, referred to in Article 6.14, may enter into cooperation and technical assistance agreements.
Article 6.11. Committee on Sanitary and Phytosanitary Measures
1. The Parties establish the Committee on Sanitary and Phytosanitary Measures (hereinafter "the Committee"), composed of representatives of each Party with responsibilities in this area, as a forum to ensure and monitor the implementation and administration of this Chapter, as well as to address and attempt to resolve problems that arise in the trade of goods subject to the application of sanitary and phytosanitary measures.
2. The Committee may establish working groups on sanitary and phytosanitary matters as it deems appropriate.
3. The functions of the Committee shall include:
(a) monitor the implementation and administration of this Chapter;
(b) report to the Commission on the implementation and administration of this Chapter, as appropriate,
(c) serve as a forum to consult, discuss and attempt to resolve problems related to the development or application of sanitary or phytosanitary measures that affect or may affect trade between the Parties;
(d) contribute to trade facilitation through the timely handling of consultations on problems related to the implementation of this Chapter;
(e) improve any present or future relationship between the offices responsible for the application of sanitary and phytosanitary measures of the Parties;
(f) contribute to mutual understanding of the Partiesâ sanitary and phytosanitary measures, their implementation processes, and related domestic regulations;
(g) promote cooperation, technical assistance, training and exchange of information on sanitary and phytosanitary measures;
(h) consult on the position of the Parties on issues to be discussed at meetings of the WTO SPS Committee and other fora of which the Parties are members; and
(i) to deal with any other matter related to this Chapter.
4. Unless otherwise agreed by the Parties, the Committee shall meet every two years in ordinary session, on a date mutually agreed by the Parties. The Parties shall determine those cases in which extraordinary meetings may be held.
5. The meetings may be held in person or by any technological means. When they are face-to-face, they shall be held alternately in the territory of each Party, and the host Party shall be responsible for organizing and chairing the meeting, unless they agree otherwise. The first meeting of the Committee shall be held no later than one year after the date of entry into force of this Agreement.
6. Unless otherwise agreed by the Parties, the Committee shall be of a permanent nature and shall develop its working rules.
Article 6.12. Settlement of Disputes
Once the consultation procedure pursuant to subparagraph 3 (c) of Article 6.11 has been exhausted, a Party that is not satisfied with the outcome of such consultations may resort to the dispute settlement procedure set forth in Chapter 24 (Dispute Settlement).
Article 6.13. Definitions
For the purposes of this Chapter, the definitions and glossaries of Annex A of the WTO SPS Agreement and of the international reference bodies shall apply.
Article 6.14. Focal Points and Competent Authorities
1. Each Party shall establish a focal point who shall be responsible for coordinating the implementation of this Chapter. The focal points shall be:
(a) for Costa Rica, the Ministry of Foreign Trade, or its successor,
(b) for Ecuador, the Ministry of Production, Foreign Trade, Investment and Fisheries, or its successor.
2. For the purposes of this Chapter, the competent authorities for Sanitary and Phytosanitary Measures are:
(a) for Ecuador:
(i) Phytosanitary and Zoosanitary Regulation and Control Agency (AGROCALIDAD), or its successor;
(ii) National Agency of Regulation, Control and Sanitary Surveillance (ARCSA), or its successor; and
(iii) Ministry of Production, Foreign Trade, Investment and Fisheries (MPCEIP) through the Undersecretariat of Quality and Safety, or its successor;
(b) for Costa Rica:
(i) State Phytosanitary Service (SFE), or its successor;
(ii) National Animal Health Service (SENASA), or its successor; and
(iii) Ministry of Health, or its successor.
Chapter 7. Technical Barriers to Trade
Article 7.1. Scope of Application
1. This Chapter applies to the preparation, adoption and application of all standards, technical regulations and conformity assessment procedures of each Party that may directly or indirectly affect trade in goods.
2. Notwithstanding the provisions paragraph 1, this Chapter does not apply to:
(a) sanitary and phytosanitary measures, which shall be covered by Chapter 6 (Sanitary and Phytosanitary Measures); and
(b) purchasing specifications established by governmental institutions for the production or consumption needs of governmental institutions, which shall be governed by Chapter 17 (Government Procurement).
Article 7.2. Objectives
The objective of this Chapter is to facilitate and increase trade in goods by identifying, avoiding and eliminating unnecessary obstacles to trade between the Parties that may arise as a result of the preparation, adoption and application of technical regulations, standards and conformity assessment procedures, and the promotion of joint cooperation between the Parties, within the terms of the WTO TBT Agreement.
Article 7.3. Reaffirmation of the WTO TBT Agreement
The Parties reaffirm their existing rights and obligations with respect to each other under the WTO TBT Agreement, which are incorporated into this Chapter, mutatis mutandis.
Article 7.4. Trade Facilitation
1. The Parties shall intensify their joint work in the field of standards, technical regulations and conformity assessment procedures, with a view to facilitating trade between the Parties. In particular, the Parties shall seek to identify, develop and promote trade facilitating initiatives relating to standards, technical regulations and conformity assessment procedures that are appropriate to particular issues or sectors, taking into account the Parties' respective experience in other appropriate bilateral, regional or multilateral agreements.
2. The Parties recognize the existence of a wide range of cooperative mechanisms to support greater regulatory convergence, and eliminate technical barriers to trade including increasing, to the extent possible, harmonization of national standards with international standards, as well as cooperation through mutual recognition agreements.
3. When a Party detains at the port of entry a good originating in the territory of the other Party by virtue of a perceived non-compliance with a technical regulation, it shall immediately notify the importer of the reasons for the detention.
Article 7.5. Use of International Standards
1. Each Party shall use relevant international standards, guides and recommendations as provided for in Articles 2.4 and 5.4 of the WTO TBT Agreement as the basis for its technical regulations and conformity assessment procedures.
2. In determining whether an international standard, guide or recommendation within the meaning given in Article 2, Article 5 and Annex 3 of the WTO TBT Agreement exists, each Party shall apply the principles set forth in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade (hereinafter "WTO TBT Committee") since January 1, 1995, G/TBT/1/Rev.14, dated September 24, 2019 issued by the WTO TBT Committee.
3. Each Party shall encourage its national standardizing bodies to cooperate with the relevant national standardizing bodies of the other Party in international standardization activities. Such cooperation may be effected through the activities of the Parties in regional and international standardizing bodies of which the Parties are members.
Article 7.6. Technical Regulations
1. Each Party shall consider accepting as equivalent the technical regulations of the other Party, even if they differ from its own, provided that it is satisfied that they adequately fulfill the legitimate objectives of its own technical regulations.
2. When a Party does not accept a technical regulation of the other Party as equivalent to one of its own, it shall, at the request of the other Party, explain the reasons for its decision.
3. At the request of a Party that has an interest in developing a technical regulation similar to the technical regulation of the other Party and to minimize duplication of costs, the other Party may provide any relevant information, studies or other available documents, on which the development of these technical regulations has been based, except for confidential information.
4. Technical regulations shall not restrict trade more than necessary to achieve a legitimate objective, taking into account the risks that would be created by not achieving it. Such legitimate objectives, among others, are: the imperatives of national security; the prevention of practices that may mislead; the protection of human health or safety, animal or plant life or health, or the environment. In assessing these risks, relevant elements to be taken into consideration are, among others: available scientific and technical information, related processing technology or end uses for which the products are intended.
Article 7.7. Conformity Assessment
1. The Parties recognize that a wide range of mechanisms exist to facilitate the acceptance in the territory of one Party of the results of conformity assessment procedures carried out in the territory of the other Party, for example:
(a) the importing Party's reliance on a supplier's declaration of conformity;
(b) voluntary agreements between conformity assessment bodies in the territory of the Parties;
(c) agreements on mutual acceptance of the results of conformity assessment procedures with respect to specific regulations, carried out by bodies located in the territory of the other Party;
(d) accreditation procedures to qualify conformity assessment bodies;
(e) the designation assessment bodies; and
(f) the recognition by a Party of the results of conformity assessment procedures carried out in the territory of the other Party.
The Parties shall intensify the exchange of information in relation to these and similar mechanisms to facilitate the acceptance of results of conformity assessment procedures.