2. In the event that a Party does not accept the results of a conformity assessment procedure carried out in the territory of the other Party, the latter shall, at the request of that other Party, explain the reasons for its decision.
3. Each Party shall accredit, license or otherwise recognize conformity assessment bodies in the territory of the other Party on terms no less favorable than those accorded to conformity assessment bodies in its territory. If a Party accredits, authorizes or otherwise recognizes a body assessing conformity to a specific standard or technical regulation in its territory and refuses to accredit, authorize or otherwise recognize a body assessing conformity to that same standard or technical regulation in the territory of the other Party, it shall, on request of that other Party, explain the reasons for its decision.
4. The Parties may enter into negotiations aimed at the conclusion of agreements on mutual recognition of the results of their respective conformity assessment procedures, following the principles of the WTO TBT Agreement. In the event that a Party does not agree to enter into such negotiations, it shall, at the request of the other Party, explain the reasons for its decision.
Article 7.8. Transparency
1. Each Party shall notify in accordance with Article 10 of the WTO TBT Agreement:
(a) its draft technical regulations and conformity assessment procedures; and
(b) technical regulations and conformity assessment procedures adopted to address urgent safety, health, environmental protection or national security problems that arise or threaten to arise under the terms of the WTO TBT Agreement.
2. Each Party shall publish on the website of its competent national authority those technical regulations and conformity assessment procedures, including those that are consistent with the technical content of any relevant international standard. This publication shall remain publicly available as long as such technical regulations and conformity assessment procedures are in force.
3. Each Party shall allow a period of at least 60 days from the date of the notification referred to in subparagraph 1(a) for the other Party and interested persons to provide written comments on the proposal. A Party shall give sympathetic consideration to reasonable requests for an extension of the time period for comment.
4. Each Party shall make available to the other Party the responses to the significant comments it receives from the other Party, cither in printed or electronic form, no later than the date on which it publishes the final version of the technical regulation or conformity assessment procedure.
5. The notification of draft technical regulations and conformity assessment procedures shall include an electronic link to, or a copy of, the full text of the notified document.
6. A Party shall, upon request of the other Party, provide information on the objective and basis of the technical regulation or conformity assessment procedure that such Party has adopted or proposes to adopt.
7. The Parties agree that the period between publication and entry into force of technical regulations and conformity assessment procedures shall not be less than six months, unless it is impracticable to meet their legitimate objectives within that period. The Parties may consider reasonable requests for extension of the time period.
8. The Parties shall ensure that all technical regulations and conformity assessment procedures adopted and in force are publicly available on a free official website, in such a way that they are easily located and accessible.
9. Each Party shall implement the provisions of paragraph 4 as soon as practicable and in no case later than three years after the entry into force of this Agreement.
Article 7.9. Technical Cooperation
1. At the request of a Party, the other Party shall give favorable consideration to any sector-specific proposal made by the requesting Party for further cooperation under this Chapter.
2. The Parties agree to cooperate and provide technical assistance in the field of standards, technical regulations and conformity assessment procedures, and other related matters, with a view to facilitating access to their markets. In particular, the Parties shall consider the following activities, among others:
(a) to promote the application of this Chapter;
(b) to promote the implementation of the WTO TBT Agreement;
(c) strengthen the capacities of their respective standardization bodies, technical regulations, conformity assessment, and information and notification systems under the WTO TBT Agreement, including the training of human resources; and
(d) increase participation in international organizations, including those of a regional nature, related to standardization, technical regulation and conformity assessment.
Article 7.10. Committee on Technical Barriers to Trade
1. The Parties establish a Committee on Technical Barriers to Trade (hereinafter referred to as the "Committee"), "The Committee shall be composed of representatives of each Party in accordance with Annex 7.10.
2. 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) promptly deal with matters that a Party proposes with respect to the development, adoption, application or implementation of standards, technical regulations, or conformity assessment procedures;
(d) to encourage the joint cooperation of the Parties in the development and improvement of standards, technical regulations and conformity assessment procedures;
(e) as appropriate, facilitate sectoral cooperation between governmental and non- governmental bodies on standards, technical regulations, conformity assessment procedures and other related matters in the territories of the Parties;
(f) exchange information about the work being carried out in non-governmental, regional and multilateral fora involved in activities related to standards, technical regulations and conformity assessment procedures;
(g) at the request of a Party, to resolve consultations on any matter arising under this Chapter,
(h) review this Chapter in light of any developments under the WTO TBT Agreement, and decisions or recommendations of the WTO TBT Committee, and make suggestions on possible amendments to this Chapter;
(i) take any other action that the Parties consider will assist them in the implementation of this Chapter and the WTO TBT Agreement and in the facilitation of trade between the Parties;
(j) to recommend to the Commission the establishment of working groups to deal with specific matters related to this Chapter and the WTO TBT Agreement; and
(k) to deal with any other matter related to this Chapter.
3. The Parties shall make every effort to reach a mutually satisfactory solution to the consultations referred to in subparagraph 2(g) within a period 30 days.
4. Where the Parties have resorted to consultations pursuant to subparagraph 2(g), such consultations shall replace those provided for in Article 24.4 (Consultations).
5. The representatives of each Party in accordance with Annex 7.10 shall be responsible for coordinating with the relevant bodies and persons in its territory, as well as for ensuring that such bodies and persons are convened.
6. 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.
7. 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.
8. Unless otherwise agreed by the Parties, the Committee shall be of a permanent nature and shall develop its working rules.
Article 7.11. Exchange of Information
1. Any information or explanation provided at the request of a Party in accordance with the provisions of this Chapter shall be provided in printed or electronic form within 30 days, which may be extended upon justification by the reporting Party.
2. Regarding the exchange of information, in accordance with Article 10 of the WTO TBT Agreement, the Parties should implement the recommendations indicated in the document Decisions and Recommendations adopted by the WTO TBT Committee since January 1, 1995, G/TBT/1/Rev.14, dated September 24, 2019 issued by the WTO TBT Committee.
Article 7.12. Definitions
For the purposes of this Chapter, the terms and definitions in Annex 1 of the WTO TBT Agreement shall apply.
Chapter 8. Trade Remedies
Article 8.1. Competent Investigating Authorities
For the purposes of this Chapter, competent investigating authority means:
(a) for Costa Rica, the Dirección de Defensa Comercial del Ministerio de Economia, Industria y Comercio, or its successor; and
(b) for Ecuador, the Direccién de Defensa Comercial del Ministerio de Produccion, Comercio Exterior, Inversiones y Pesca or its successor.
Section A. Bilateral Safeguard Measures
Article 8.2. Imposition of a Bilateral Safeguard Measure
1. During the transition period, if as a result of the reduction or elimination of a customs duty under this Agreement, a good originating in one Party is being imported into the territory of the other Party in such increased quantities in absolute terms or relative to domestic production and under such conditions as to constitute a substantial cause of serious injury or threat thereof to the domestic industry producing a like or directly competitive good, the importing Party may adopt a bilateral safeguard measure described in paragraph 2.
2. If the conditions set out in paragraph 1 are met, a Party may, to the extent necessary to prevent or remedy serious injury or threat thereof and to facilitate readjustment:
(a) suspend the future reduction of any tariff rate provided for in this Agreement for the good; or
(b) increase the rate of duty for the good to a level not to exceed the lesser of:
(i) the most favored nation (MFN) tariff rate applied at time the measure is applied; or
(ii) the base tariff rate as set forth in Annex 2.3 (1) (Tariff Elimination Program).
Article 8.3. Standards for a Bilateral Safeguard Measure
1. No Party may maintain a bilateral safeguard measure:
(a) except to the and for the period necessary to prevent or remedy the serious damage and to facilitate readjustment;
(b) for a period exceeding two years, except that this period may be extended for an additional two years, if the competent authority determines, in accordance with the procedures set forth in Article 8.4, that the measure continues to be necessary to prevent or remedy serious injury, to facilitate adjustment, and that there is evidence that the domestic industry is in the process of adjustment; or
(c) after the expiration of the transition period.
2. In order to facilitate readjustment in a situation where the expected duration of a bilateral safeguard measure exceeds one year, the Party applying the measure shall progressively liberalize it at regular intervals during the period of application.
3. A Party may not apply a bilateral safeguard measure more than once against the same good until a period equal to the duration of the previous bilateral safeguard measure, including any extension, has elapsed, starting from the termination of the previous bilateral safeguard measure, provided that the period of non-application is at least one year.
4. Upon termination of the bilateral safeguard measure, the Party that has adopted the measure shall apply the tariff rate in accordance with its Schedule of Schedule 2.3 (Tariff Elimination Program).
Article 8.4. Investigation Procedures and Transparency Requirements
1. A Party may apply a bilateral safeguard measure only after an investigation conducted by the Party's competent authority in accordance with Articles 3 and 4.2(c) of the WTO Agreement on Safeguards, and for this purpose, Articles 3 and 4.2(c) of the WTO Agreement on Safeguards are incorporated into and made an integral part of this Agreement, mutatis mutandis.
2. In the investigation described in paragraph 1, the Party shall comply with the requirements of Articles 4.2(a) and 4.2(b) of the WTO Agreement on Safeguards, and to this end, Articles 4.2(a) and 4.2(b) of the WTO Agreement on Safeguards are incorporated into and made an integral part of this Agreement, mutatis mutandis.
3. Each Party shall ensure that its competent authorities complete this type of investigation within a total period of no more than 12 months, including any extension.
Article 8.5. Provisional Bilateral Safeguard Measures
1. In critical circumstances, where any delay would cause injury which would be difficult to repair, a Party may apply a provisional bilateral safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports from the other Party have caused or are threatening to cause serious injury to the domestic industry.
2. The duration of the provisional bilateral safeguard shall not exceed 200 days, shall adopt any of the forms provided for in paragraph 2 of Article 8.2, and shall comply with the relevant requirements of Articles 8.2 and 8.4. Guarantees or funds received for provisional measures shall be released or reimbursed promptly, when the investigation does not determine that increased imports have caused or threatened to cause serious injury to the domestic industry. The duration of any provisional bilateral safeguard measure shall be counted as part of the duration of a definitive bilateral safeguard measure.
Article 8.6. Notification and Consultation
1. A Party shall promptly notify other in writing, when:
(a) initiate a bilateral safeguard procedure accordance with this Section,
(b) apply a provisional bilateral safeguard measure; and
(c) adopt the final decision to apply or extend a bilateral safeguard measure.
2. A Party shall provide to the other Party a copy of the public version of the report of its competent investigating authority required under paragraph 1 of Article 8.4.
3. Upon request of a Party whose good is subject to a bilateral safeguard proceeding under this Chapter, the Party conducting the proceeding shall initiate consultations with the requesting Party to review the notifications under paragraph 1, or any public notice or report issued by the competent investigating authority in connection with such proceeding.
Article 8.7. Compensation
1. No later than 30 days after it applies a bilateral safeguard measure, a Party shall provide an opportunity for consultations with the other Party regarding appropriate trade liberalization compensation in the form of concessions having substantially equivalent effect on trade, or equivalent to the value of the additional duties expected as a result of the measure.
2. If the Parties are unable to agree on compensation within 30 days after the initiation of consultations, the exporting Party may suspend the application of substantially equivalent concessions to the trade of the Party applying the bilateral safeguard .
3. The exporting Party shall notify the Party applying the bilateral safeguard measure in writing at least 30 days before suspending concessions under paragraph 2.
4. The right of suspension referred to in paragraph 2 shall not be exercised during the first year that the bilateral safeguard measure is in effect, provided that the safeguard measure was taken as a result of an increase in absolute terms of imports and that such measure is in conformity with the provisions of this Agreement.
5. The obligation to provide compensation under paragraph 1 and the right to suspend concessions under paragraph 2 shall terminate on the date of termination of the bilateral safeguard measure.
Article 8.8. Definitions
For the purposes of this Section:
threat of serious harm means the clear imminence of serious harm based on facts and not merely on allegation, conjecture or remote possibility;
substantial cause means a cause that is important and not less than any other cause;
serious injury means a significant overall impairment of the position of a domestic industry;
transition period means the five-year period commencing on the date of entry into force of this Agreement, except for any goods for which the Annex 2.3 (Tariff Schedule) of the Party applying the safeguard measure provides that it shall eliminate its duties on the good over a period of five years or more, where transition period means the period of tariff reduction for the good set out in Annex 2.3 (Tariff Schedule) plus an additional period of two years.
Section B. Global Safeguarding Measures
Article 8.9. Global Safeguarding Measures
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the WTO Agreement on Safeguards.
2. This Agreement confers no additional rights or obligations on the Parties with respect to actions taken pursuant Article XIX of the GATT 1994 and the WTO Agreement on Safeguards, except that the Party imposing a global safeguard measure may exclude imports of a good originating in the other , if such imports are not a substantial cause of serious injury or threat of serious injury.
3. For the purposes of paragraph 2, imports from the other Party shall normally be considered not to constitute a substantial cause of serious injury or threat of serious injury if that Party is not among the five principal suppliers of the good subject to the proceeding, based on its share of total imports during the three years immediately preceding the initiation of the investigation, unless the Party conducting the investigation justifies through a duly substantiated resolution the need to include imports from the other Party, on the grounds that their exclusion would affect the effectiveness of the measure.
4. No Party shall apply with respect to the same good and during the same period:
(a) a bilateral safeguard measure in accordance with Section A; and
(b) a measure under Article XIX of GATT 1994 and the WTO Agreement on Safeguards.
5. Except as provided in paragraph 4, Chapter 24 (Dispute Settlement) shall not apply to this Section.
Section C. Antidumping and Countervailing Duties
Article 8.10. Antidumping and Countervailing Duties
1. Each Party retains its rights and obligations under Article VI of the GATT 1994, the WTO Antidumping Agreement, and WTO Subsidies Agreement, with respect to the application of antidumping and countervailing duties.
2. Except as provided in paragraph 3, nothing in this Agreement shall be constmed to impose any rights or obligations on the Parties with respect to anti-dumping and countervailing duties.
3. Without prejudice to Article 6.5 of the WTO Antidumping Agreement and Article 12.4 of the WTO Subsidies Agreement, and in accordance with Article 6.9 of the WTO Antidumping Agreement and Article 12.8 of the WTO Subsidies Agreement, the competent investigating authority shall make meaningful disclosure of all essential facts and considerations that form the basis for the decision on the application of definitive measures. In this , the competent investigating authority shall send to the interested parties a written report containing such information, and shall the interested parties sufficient time to submit their comments and rebuttals in writing and orally to this report.
4. Chapter 24 (Dispute Settlement) shall not apply to this Section.
Section D. Cooperation
Article 8.11. Cooperation
The Parties agree to establish a mechanism for cooperation between their investigating authorities. Cooperation between the Parties may include, but is not limited to, the following activities:
(a) exchange of available non-confidential information on trade remedy investigations they have carried out with respect to imports originating in or coming from third countries other than the Parties;
(b) technical assistance on trade remedies; and
(c) exchange of information in order to improve understanding of this Chapter and of the Partiesâ trade remedy regimes.
Chapter 9. Competition Policy
Article 9.1. Objectives and Principles
1. The purpose of this Chapter is to ensure that the benefits of trade liberalization under this Agreement are not undermined by anti-competitive practices or transactions, as well as to promote cooperation between the Parties in the application of their respective competition laws.
2. The Parties agree that the following practices (1) are incompatible with this Agreement, insofar as they may affect trade between the Parties:
(a) agreements between undertakings, decisions of associations of undertakings and concerted practices, the object or effect of which is to prevent, restrict or distort competition;
(b) any abuse by one or more companies of a dominant position or substantial market power or significant market share; and.
(c) concentrations between companies that significantly hinder effective competition;
as specified in their respective competition laws.
Article 9.2. Legislation and Competent Authorities
1. Each Party shall adopt or maintain national competition laws that promote and protect the competitive process in its markets by prohibiting the conduct or transactions referred to in paragraph 2 of Article 9.1, in order to promote economic efficiency and consumer welfare.
2. Each Party shall establish or maintain one or more authorities responsible for the enforcement of its respective competition laws.
3. Each Party shall maintain its autonomy to develop and apply its own competition legislation.
4. Each Party shall ensure that any exceptions to the application its competition laws are provided for in its legislation and implemented in a transparent manner.
Article 9.3. Implementation
1, Each Party shall ensure that its respective national competition authorities act in accordance with the principles of legality, transparency, procedural fairness, due process and compliance with time limits in the application of their respective competition laws.
2. Each Party shall provide persons subject to the imposition of a sanction or corrective measure under its competition law with a reasonable opportunity to present evidence, be heard and request a review of the sanction or corrective measure, through administrative and/or judicial channels, in accordance with each Party's legislation.
3. Each Party shall make its competition laws publicly available.
4. Each Party shall ensure that all final decisions finding a violation of its competition laws are provided in written form and indicate any relevant factual findings and the legal basis on which the decision is based, in accordance each Party's law.
5. Each Party shall ensure that its competition law is applied by its competition authority or authorities in accordance with the objectives set out in this Chapter, and shall be applied in a non- discriminatory manner.
Article 9.4. Cooperation
1. The Parties recognize the importance of cooperation and coordination between their respective national competition authorities to promote the effective enforcement of their respective competition laws.
2. Accordingly, the Parties shall cooperate in matters relating to the application of competition policy and law, including notification, exchange of information, consultations and technical assistance, in accordance with Articles 9.5, 9.6, 9.7, and 9.5, respectively.
3. The Parties, through their competition authorities or competent competition authorities, may sign cooperation agreements or arrangements for the purpose of strengthening cooperation in competition matters considering their available resources.
4. This cooperation shall not prevent the Parties from making autonomous decisions.
Article 9.5. Notifications
1, The competition authority of a Party shall notify the competition authority of the other Party of any enforcement activity of its competition s relating to the practices or actions referred to in Article 9.2 if it considers that such activity may affect important interests of the other Party.
2. Provided that it is not contrary to the domestic laws of the Parties, nor does it affect any ongoing investigation, the notification shall relate to non-confidential information (2) and shall be made at an early stage of the administrative proceeding. The competition authority of the Party conducting the enforcement activity of its competition law may take into the submissions received from the other in its determinations.
Article 9.6. Exchange of Information
1. The Parties recognize the value of transparency competition policies.
2. In order to facilitate the effective application of their respective competition laws, the Parties may exchange non-confidential information at the request of one of them, provided that this is not contrary to their national laws and does not affect any ongoing investigation.
Article 9.7. Consultations
In order to promote understanding between the Parties or to address specific matters arising this Chapter, a Party shall, at the request of the other Party, initiate consultations, without prejudice to the autonomy of each Party to develop, maintain and apply its competition law. The requesting Party shall indicate the matter affects trade between the Parties. The requested Party shall give the utmost consideration to the concerns of the other Party.