6. Each Party shall adopt or maintain procedures by which its competent authorities may determine, within a reasonable period of time after the initiation of the procedures described in paragraph 3 or 4, if the goods suspected of infringing an intellectual property right infringe an intellectual property right.
7. Each Party may exclude from the application of this Article small quantities of goods of a non-commercial nature contained in travellers' personal luggage or sent in small consignments.
Article 12.9. Cooperation on Enforcement of Intellectual Property Rights
1. The Parties recognize the challenges related to the enforcement of intellectual property rights, particularly in trans-border contexts. The Parties shall endeavour to cooperate, as appropriate, to stem the economic and social costs of trade-mark counterfeiting and copyright piracy in accordance with each Party's law.
2. Each Party shall endeavour to encourage the development of expertise for the enforcement of intellectual property rights. The Parties shall also endeavour to exchange information and share best practices in areas of mutual interest relating to the enforcement of intellectual property rights in accordance with each Party's domestic law.
3. The Parties' respective competent authorities may cooperate, as appropriate, to better identify and target the inspection of shipments suspected of containing certain counterfeit trademark or pirated copyright, and, in doing so, endeavour to:
(a) share information on innovative approaches that may be developed to provide greater analytical targeting of shipments that could contain counterfeit or pirated goods; and
(b) share information and intelligence regarding shipments of suspected counterfeit trademark or pirated copyright goods in appropriate cases.
Article 12.10. Other Areas of Cooperation
Recognizing the growing importance of intellectual property rights in promoting innovation, social, economic, and cultural development, as well as economic competitiveness in a knowledge based economy, the Parties endeavour to cooperate, subject to availability of resources, in the field of intellectual property in areas of mutual interest.
Article 12.11. Designation of Contact Points
Each Party shall designate a Contact Point to facilitate communications between the Parties on intellectual property, and shall notify the other Party of the Contact Point and any changes to the Contact Point.
Article 12.12. Committee on Intellectual Property
1. The Parties continue the Committee on Intellectual Property (Committee) established under the 2017 Agreement composed of representatives of each Party with expertise in intellectual property.
2. The Committee shall be co-chaired by a representative of each Party.
3. The Committee shall:
(a) discuss topics relevant to the protection and enforcement of intellectual property rights covered by this Chapter, and any other relevant issue as mutually decided by the Parties;
(b) provide a forum for consultations pursuant to Article 12.15;
(c) oversee the Parties' cooperation under this Chapter; and
(d) make any recommendation to the Joint Commission referred to under Article 27.1 (Joint Commission) to amend Annex 12-A pursuant to Article 12.3.9.
4. The Parties shall endeavour to increase opportunities for cooperation in the field of intellectual property. This cooperation may include:
(a) promoting the development of contacts among the Parties' respective competent authorities that have an interest in the field of intellectual property;
(b) exchanging information on:
(i) each Party's legislation, procedures, policies, activities, and experiences in the field of intellectual property;
(ii) the implementation of intellectual property systems aimed at promoting the efficient registration of intellectual property rights; and
(iii) appropriate initiatives to promote public awareness of intellectual property rights.
5. With the exception of consultations pursuant to Article 12.15, the Committee shall meet as mutually decided by the Parties. Committee meetings may be held in person, or by electronic video-conference, telephone, or by other means.
Article 12.13. Transparency
With the aim of making the protection and enforcement of intellectual property rights transparent, each Party shall ensure that its laws, regulations, and procedures concerning intellectual property rights are published or otherwise made available in a manner that enables the other Party or any interested person to become acquainted with them.
Article 12.14. Disclosure of Information
This Chapter does not require a Party to disclose information that would impede law enforcement, be contrary to its law, or that is exempt from disclosure under its law.
Article 12.15. Consultations
1. Either Party may request consultations with the other Party regarding any actual or proposed measure, or any other matter which that Party considers might negatively affect its intellectual property interests.
2. Upon a request pursuant to paragraph 1, the Parties shall consult each other within the framework of the Committee referred to under Article 12.12 to consider ways of reaching a mutually satisfactory solution. In doing so, each Party shall:
(a) endeavour to provide sufficient information to enable a full examination of the matter; and
(b) maintain the confidentiality of the information provided by the other Party in the course of consultations.
3. Consultations within the framework of the Committee shall be conducted within 60 days following the request for consultations.
4. If the Parties are unable to reach a mutually satisfactory solution pursuant to the consultations under paragraph 2, either Party may refer the matter to the Joint Commission referred to under Article 27.1 (Joint Commission).
Article 12.16. Non-Application of Dispute Settlement
A Party shall not have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 13. Environment
Article 13.1. Definitions
For the purposes of this Chapter:
environmental law means a statute or regulation of a Party, or provision thereof, including any that implements the Party's obligations under a multilateral environmental agreement, the primary purpose of which is the protection of the environment, or the prevention of a danger to human life or health, through:
(a) the prevention, abatement, or control of the release, discharge, or emission of pollutants or environmental contaminants;
(b) the control of environmentally hazardous or toxic chemicals, substances, materials, or wastes, and the dissemination of information related thereto; or
(c) the protection or conservation (1) of wild fauna or flora including endangered species, their habitat, and specially protected natural areas,
but does not include a statute or regulation, or provision thereof, directly related to worker safety or health, nor any statute or regulation, or provision thereof, the primary purpose of which is managing the subsistence or aboriginal harvesting of natural resources;
specially protected natural areas means those areas as defined by the Party in its law; and
statute or regulation means, for Canada, an Act of the Parliament of Canada or regulation made under an Act of the Parliament of Canada that is enforceable by action of the central level of government.
Article 13.2. Context and Objectives
1. The Parties recognize that a healthy environment is an integral element of sustainable development and recognize the contribution that trade makes to sustainable development.
2. The Parties recognize that the objectives of this Chapter are to:
(a) promote mutually supportive trade and environmental policies and practices;
(b) promote high levels of environmental protection and effective enforcement of environmental laws; and
(c) enhance the capacities of the Parties to address trade-related environmental issues, including through cooperation, in the furtherance of sustainable development.
3. Taking account of their respective national priorities and circumstances, the Parties recognize that enhanced cooperation to protect and conserve the environment and the sustainable use and management of their natural resources brings benefits that can contribute to sustainable development, strengthen their environmental governance, support implementation of multilateral environmental agreements to which they are a party, and complement the objectives of this Agreement.
4. The Parties recognize that the environment plays an important role in the economic, social, and cultural well-being of Indigenous Peoples, and rural or remote communities, and acknowledge the importance of engaging with these groups in the long-term conservation of the environment.
5. The Parties further recognize that it is inappropriate to establish or use their environmental laws or other measures in a manner which would constitute a disguised restriction on trade or investment between the Parties.
Article 13.3. Right to Regulate and Levels of Protection
1. The Parties recognize the sovereign right of each Party to establish its own levels of domestic environmental protection and its own environmental priorities, and to establish, adopt, or modify its environmental laws and policies accordingly.
2. Each Party shall endeavour to ensure that its environmental laws and policies provide for, and encourage, high levels of environmental protection, and shall endeavour to continue to improve its respective levels of environmental protection.
3. The Parties recognize that a key principle underpinning their environmental laws and policies is that those who pollute the environment should bear the cost of that pollution.
Article 13.4. Enforcement of Environmental Laws
1. A Party shall not fail to effectively enforce its environmental laws through a sustained or recurring course of action or inaction (2) in a manner affecting trade or investment between the Parties. (3) (4)
2. Each Party retains the right to exercise discretion and to make decisions regarding: (a) investigatory, prosecutorial, regulatory, and compliance matters; and (b) the allocation of environmental enforcement resources with respect to other environmental laws determined to have higher priorities. Accordingly, the Parties understand that, with respect to the enforcement of environmental laws, a Party is in compliance with paragraph 1 if a course of action or inaction reflects a reasonable exercise of that discretion, or results from a bona fide decision regarding the allocation of those resources in accordance with priorities for enforcement of its environmental laws.
3. Without prejudice to Article 13.3(1), the Parties recognize that it is inappropriate to encourage trade or investment by weakening or reducing the protection afforded in their environmental laws. Accordingly, a Party shall not waive or otherwise derogate, or offer to waive or otherwise derogate, from its environmental laws in a manner that weakens or reduces the protection afforded in those law in order to encourage trade or investment between the Parties.
4. Nothing in this Chapter shall be construed to authorize a Party to enforce its environmental laws in the territory of the other Party.
Article 13.5. Public Information and Participation
1. Each Party shall promote public awareness of its environmental laws and policies, including enforcement and compliance procedures, by ensuring that relevant information is available to the public.
2. Each Party shall provide for the receipt and consideration of written questions or comments from persons of that Party regarding its implementation of this Chapter. Each Party shall respond in a timely manner to these questions or comments in writing and in accordance with its procedures, and make the questions, comments, and responses available to the public, including by publishing them on an appropriate public website.
3. Each Party shall make use of existing, or establish new, consultative mechanisms, including a national advisory committee, to seek views on matters related to the implementation of this Chapter. These mechanisms may include persons with relevant experience, as appropriate, including experience in business, natural resource conservation and management, or other environmental matters.
Article 13.6. Procedural Matters
1. Each Party shall ensure that an interested person may request that the Party's competent authorities investigate alleged violations of its environmental laws, and that the competent authorities give those requests due consideration, in accordance with its law.
2. Each Party shall ensure that persons with a recognized interest under its law in a particular matter have appropriate access to administrative, quasi-judicial, or judicial proceedings for the enforcement of the Party's environmental laws, and the right to seek appropriate remedies or sanctions for violations of those environmental laws.
3. Each Party shall ensure that administrative, quasi-judicial, or judicial proceedings for the enforcement of the Party's environmental laws are available under its law, and that those proceedings are fair, equitable, transparent, and comply with due process of law, including providing the opportunity for parties to the proceedings to support or defend their respective positions. The Parties recognize that these proceedings should not be unnecessarily complicated nor entail unreasonable fees or time limits.
4. Each Party shall provide that any hearings in these proceedings are conducted by impartial and independent persons who do not have an interest in the outcome of the matter. Hearings in these proceedings shall be open to the public, except when the administration of justice otherwise requires, and in accordance with its law.
5. Each Party shall ensure that final decisions on the merits of the case in these proceedings are:
(a) in writing, and if appropriate state the reasons on which the decisions are based;
(b) made available without undue delay to the parties to the proceedings and, in accordance with its law, to the public; and
(c) based on information or evidence submitted by the parties to the proceedings, or other sources, in accordance with its law.
6. Each Party shall also ensure, as appropriate, that parties to these proceedings have the right, in accordance with its law, to seek review and, if warranted, correction or redetermination, of final decisions in those proceedings.
7. Each Party shall provide appropriate sanctions or remedies for violations of its environmental laws and shall ensure that it takes account of relevant factors, which may include the nature and gravity of the violation, damage to the environment, and any economic benefit derived by the violator, when ordering sanctions or remedies.
Article 13.7. Scientific and Technical Information
1. When preparing and implementing measures aimed at environmental protection that may affect trade or investment between the Parties, each Party shall take into account relevant scientific and technical information and related international standards, guidelines, or recommendations.
2. For the purposes of this Chapter, the Parties acknowledge that where there are threats of serious or irreversible damage to the environment, the lack of full scientific certainty should not be used as a reason for postponing cost-effective measures to prevent environmental degradation.
Article 13.8. Environmental Impact Assessment
1. Each Party shall maintain appropriate procedures for assessing the impacts of proposed projects that are subject to an action by that Party's central level of government that may cause significant environmental effects, with a view to eliminating, avoiding, minimizing, or mitigating adverse effects.
2. Each Party shall ensure that these procedures provide for the assessment of environmental, economic, health, and social impacts and cumulative impacts, consideration of best available scientific information and if applicable, consideration of traditional knowledge of Indigenous Peoples, and rural or remote communities, and, in accordance with its law, allow for meaningful public participation.
Article 13.9. Multilateral Environmental Agreements
1. The Parties recognize the important role that multilateral environmental agreements can play in protecting the environment and as a response of the international community to global or regional environmental problems.
2. Each Party affirms its commitment to implement the multilateral environmental agreements to which it is a party.
3. The Parties shall consult and cooperate as appropriate with respect to environmental issues of mutual interest, in particular trade-related issues, pertaining to relevant multilateral environmental agreements. This includes: exchanging information on the implementation of multilateral environmental agreements to which a Party is party; ongoing negotiations of new multilateral environmental agreements; and, each Party's respective views on becoming a party to additional multilateral environmental agreements.
4. Nothing in this Agreement shall prevent a Party from adopting or maintaining measures to implement a multilateral environmental agreement to which it is a party, provided that those measures do not constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade or investment.
Article 13.10. Climate Change
1. The Parties recognize that climate change is a growing threat that requires urgent and collective action. Accordingly, the Parties are resolved to demonstrate international leadership and work together to pursue domestic and global efforts to limit the global temperature increase to 1.5 degrees Celsius above pre-industrial levels and transition to net-zero greenhouse gas emissions by 2050.
2. The Parties recognize the importance of nature-based climate solutions as actions that sustainably manage, protect, and restore natural and modified ecosystems, including forests and other terrestrial and marine ecosystems, to mitigate and adapt to the effects of climate change while simultaneously providing human well-being and biodiversity benefits.
3. Each Party shall effectively implement its obligations under the Paris Agreement, done at Paris on 12 December 2015 as amended.
4. The Parties acknowledge the important contribution of subnational governments, women, Indigenous Peoples, rural or remote communities, as well as private sector and interested stakeholders, in addressing and responding to climate change.
5. Each Party shall promote the positive contribution of trade to the transition to a net-zero and climate-resilient economy, recognizing the importance of mutually supportive trade and climate change policies.
6. Each Party shall endeavour to find innovative solutions to mitigate and adapt to the effects of climate change, including through the use of market-based approaches and trade-related climate measures to achieve overall green growth objectives.
7. The Parties recognize that reducing human-caused methane emissions is one of the fastest ways to decrease near-term global warming and could contribute significantly to global efforts to limit warming to 1.5 degrees Celsius. The Parties affirm their intention to reduce global anthropogenic methane emissions across all sectors by at least 30 percent below 2020 levels by 2030, as part of the Global Methane Pledge, done at Glasgow on 12 November 2021.
8. Consistent with Article 13.24, the Parties shall cooperate bilaterally and in international forums to address matters of mutual interest, as appropriate, to:
(a) enhance their efforts towards the implementation of the Paris Agreement;
(b) improve transparency, including through greenhouse gas emissions measurement, reporting, and verification;
(c) increase energy efficiency;
(d) promote the rapid transition from unabated coal power to clean energy sources;
(e) encourage the development and deployment of cost-effective, low‑emissions technologies and alternatives;
(f) promote environmental sustainability, including through the promotion of sustainable transport and sustainable urban infrastructure development;
(g) reduce emissions of short-lived climate pollutants, including methane;
(h) promote carbon pricing and measures to mitigate carbon leakage risks; and
(i) address impacts and risks associated with climate change through adaptation measures, including nature-based climate solutions.
Article 13.11. Protection of the Ozone Layer
1. The Parties recognize that emissions of certain substances can significantly deplete and otherwise modify the ozone layer in a manner that is likely to result in adverse effects on human health and the environment. The Parties also note that certain substances that deplete the ozone layer and some of their alternatives contribute to climate change, and note the opportunity to control those substances in a coherent manner to minimize impacts on both the ozone layer and the climate. Accordingly, each Party recognizes the importance of implementing their obligations under the Montreal Protocol on Substances That Deplete the Ozone Layer done at Montreal on 16 September 1987, as adjusted and amended.
2. Consistent with Article 13.24, the Parties shall cooperate to address matters of mutual interest related to the substances referred to in paragraph 1. Cooperation may include exchanging information and experiences in areas related to:
(a) environmentally friendly alternatives to those substances;
(b) refrigerant management practices, policies, and programs;
(c) methodologies for stratospheric ozone measurements; and
(d) combatting illegal trade in those substances.
Article 13.12. Protection of the Marine Environment from Ship Pollution
1. The Parties recognize the importance of protecting and preserving the marine environment. To that end, each Party recognizes the importance of implementing obligations under the International Convention for the Prevention of Pollution from Ships done at London on 2 November 1973 (MARPOL Convention) (5) and taking measures to prevent the pollution of the marine environment from ships.
2. Consistent with Article 13.24, the Parties shall cooperate to address matters of mutual interest with respect to pollution of the marine environment from ships. Areas of cooperation may include:
(a) addressing accidental and deliberate pollution from ships, and pollution from routine operations of ships;
(b) developing technologies to minimize ship-generated waste;
(c) addressing underwater vessel noise to reduce impacts on marine ecosystems;
(d) assessing the adequacy of port waste reception facilities;
(e) increasing protection in special geographic areas; and
(f) conducting enforcement measures including notifications to flag States and, as appropriate, by port States.
Article 13.13. Circular Economy
1. The Parties recognize that the circular economy offers a systemic approach to adopting sustainable consumption and production patterns. The Parties further recognize the role that international trade can play in the transition to a circular economy, including facilitating the movement of secondary materials and related goods and services through global supply chains.
2. Consistent with Article 13.24, the Parties shall cooperate, as appropriate, to address matters of mutual interest to advance a more resource-efficient and circular economy.
Article 13.14. Air Quality
1. The Parties recognize that air pollution is a global challenge with far reaching impacts on health, the economy, and the environment, and affirm the need to promote sustainable development policies that support improved air quality. Further, the Parties recognize that air pollution contributes to climate change and note the importance of addressing air pollution and climate change in a coherent manner. The Parties also recognize the importance of reducing emissions of short-lived climate forcers, such as methane and black carbon, to both improve air quality and mitigate climate change.
2. The Parties recognize the importance of international agreements and other international efforts to improve air quality and control air pollutants, including pollutants that have the potential for long-range transport. The Parties further recognize that broader cooperation can be beneficial in meeting these objectives. Accordingly, the Parties reaffirm their commitment to contributing to the achievement of the relevant objectives and goals of such forums.
3. Consistent with Article 13.24, the Parties shall cooperate, as appropriate, to address matters of mutual interest with respect to air quality. This cooperation may include exchanging information and experiences in areas such as: ambient air quality management and air quality standards; best practices related to sound management of chemicals that are air pollutants; and air pollutant reduction, control, and prevention technologies and practices.
Article 13.15. Chemicals Management
1. The Parties recognize the importance of pursuing the sound management of chemicals through their complete life cycle in order to enhance the protection of human health and the environment, as well as its contribution to the achievement of the Sustainable Development Goals under the United Nations 2030 Agenda for Sustainable Development.
2. The Parties also recognize the importance of implementing their obligations under the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, done at Basel on 22 March 1999, the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, done at Rotterdam on 10 September 1998, the Stockholm Convention on Persistent Organic Pollutants, done at Stockholm on 22 May 2004, and the Minamata Convention on Mercury, done at Geneva on 19 January 2013.
3. Consistent with Article 13.24, the Parties shall cooperate, as appropriate, to address matters of mutual interest with respect to chemicals management. This cooperation may include exchanging information and experiences in areas such as: risk assessment and risk management methodologies, tools, and models; scientific data and assessment; environmental monitoring; pollutant release and transfer registers; implementation of relevant international agreements; and governance structures to manage chemicals.
Article 13.16. Plastic Pollution and Waste
1. The Parties recognize the importance of taking action to prevent and reduce plastic pollution and waste, including microplastics, in order to preserve human health and the environment, prevent the loss of biodiversity, and mitigate the costs and impacts of plastic pollution and waste.
2. Recognizing the global nature of the challenge of taking action under paragraph 1(a), each Party shall adopt or maintain measures to prevent and reduce plastic pollution and waste, including microplastics.
3. Recognizing that the Parties are taking action to address plastic pollution and waste in other forums, consistent with Article 13.24, the Parties shall cooperate to address matters of mutual interest with respect to addressing plastic pollution and waste, including microplastics, such as addressing land and sea-based pollution, promoting waste reduction, improving waste management, addressing plastic waste throughout its lifecycle, promoting the transition to a circular economy, and advancing efforts related to abandoned, lost, or otherwise discarded fishing gear.