Title
AGREEMENT BETWEEN THE CARIBBEAN COMMUNITY (CARICOM), ACTING ON BEHALF OF THE GOVERNMENTS OF ANTIGUA AND BARBUDA, BARBADOS, BELIZE, DOMINICA, GRENADA, GUYANA, JAMAICA, ST. KITTS AND NEVIS, SAINT LUCIA, ST. VINCENT AND THE GRENADINES, SURINAME AND TRINIDAD AND TOBAGO AND THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA
Preamble
The Caribbean Community (CARICOM), acting on behalf of the Governments of Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago, of the one part, and the Government of the Republic of Costa Rica, of the other part (hereinafter collectively referred to as "the Parties),
HAVING DECIDED TO:
Strengthen the special bonds of friendship, solidarity and cooperation between their Governments and peoples;
Contribute to the harmonious development and expansion of world and regional trade and provide a catalyst for broader international cooperation;
Improve their existing trade relations and create opportunities for further economic development;
Create an expanded and more secure market for the goods produced in and the services supplied in or from their territories;
Reduce distortions in trade;
Establish clear and mutually beneficial rules to regulate trade between the Parties;
Ensure a transparent and predictable commercial framework for the planning of productive activities and investment;
Observe their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization and other relevant bilateral and multilateral cooperation instruments, or economic integration instruments to which they are party;
Promote regional integration in the Americas;
Enhance the competitiveness of their companies in the world markets;
Create new employment opportunities, improve working conditions and the quality of life in their respective territories;
Undertake all of the above in a manner consistent with the protection and conservation of the environment;
Promote sustainable development;
Preserve their capacity to safeguard public welfare;
Promote the active participation of private economic agents in the efforts of deepening and broadening the economic relations between the Parties;
HAVE AGREED as follows:
Body
Part ONE. General Part
Chapter I. Initial Provisions and Institutional Arrangements
Section I. Initial Provisions
Article I.01. Establishment of the Free Trade Area
The Parties, consistently with Article XXIV (Territorial Application - Frontier Traffic - Customs Unions and Free Trade Areas) of the General Agreement on Tariffs and Trade and its related Understanding of the Marrakesh Agreement establishing the World Trade Organization, hereby establish a free trade area.
Article I.02. Objectives
1. The objectives of this Agreement, as elaborated more specifically through its principles, rules and provisions, including national treatment, most-favored-nation treatment and transparency, as referred to in this Agreement, are to:
(a) establish and develop a free trade area in accordance with its provisions;
(b) stimulate trade expansion and diversification between the Parties;
(c) eliminate barriers to trade and facilitate the cross-border movement of goods and services between the territories of the Parties;
(d) promote conditions of fair competition in the free trade area;
(e) increase substantially investment opportunities in the territories of the Parties;
(f) create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes;
(g) promote regional integration in the Americas and contribute to the progressive elimination of barriers to trade and investment; and
(h) establish a framework for further bilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in a manner consistent with its objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article I.03. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the Marrakesh Agreement establishing the World Trade Organization and other agreements to which such Parties are party.
2. In the event of any inconsistency between this Agreement and such other agreements, this Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this Agreement.
Article I.04. Observance of the Agreement
Each Party shall ensure, in conformity with its applicable law and constitutional provisions, compliance with the provisions of this Agreement in its territory.
Article I.05. Succession of Treaties
Any reference to any other international treaty or agreement shall be understood to be in the same terms as any successor treaty or agreement to which the Parties are party.
Section II. Institutional Arrangements
Article I.06. The Joint Council
1. The Parties hereby establish the Joint Council of Costa Rica and CARICOM comprising public officials of both Parties at the ministerial level, or their representatives.
2. The Joint Council (hereinafter referred to as " the Council") shall have the following functions:
(i) supervise the implementation and administration of the Agreement, its Annexes and Appendices and oversee their further elaboration;
(ii) instruct the Committees, Subcommittees and Working Groups identified in Article I.08 to carry out those functions assigned to them respectively and any other function pertaining to the objectives of this Agreement.
(iii) supervise the functions of the Free Trade Coordinators and consider the recommendations of the Free Trade Coordinators;
(iv) establish and supervise the work of all committees, subcommittees and working groups created in this Agreement;
(v) resolve any dispute which may arise out of the interpretation, execution or non-compliance of this Agreement, its Annexes and Appendices in accordance with its powers under Chapter XIII (Dispute Settlement);
(vi) establish and delegate responsibilities to ad hoc or standing committees, working groups or expert groups;
(vii) supervise the work of all ad hoc or standing committees, working groups and expert groups established under this Agreement, its Annexes and Appendices;
(viii) consult with governmental, inter-governmental and non-governmental entities as necessary;
(ix) keep this Agreement, its Annexes and Appendices under periodic review, evaluating the functioning of this Agreement and recommending measures it considers suitable to better achieve its objective;
(x) carry out any other functions which may be assigned to it by the Parties;
(xi) consider any other matter that may affect the operation of this Agreement, its Annexes and Appendices and take appropriate action.
3. The Council shall convene in ordinary session at least once a year and in extraordinary sessions on the request of either Party.
4. The meetings of the Council shall be chaired jointly by the Parties. All decisions shall be taken by consensus. The decisions of the Council shall have the status of recommendations to the Parties.
5. Meetings shall be held alternately in Costa Rica and in a Member State of CARICOM or such other place as may be agreed between Costa Rica and CARICOM.
6. The Agenda for each ordinary meeting of the Council shall be settled by the Parties in good time before each proposed meeting.
7. Each Party shall designate a representative to transmit and receive correspondence on its behalf.
8. The Council may modify in fulfillment of the objectives of this Agreement:
(a) the schedule of a Party contained in Annex III.04.2 (Tariff Elimination), with the purpose of adding one or more goods excluded in the Tariff Elimination Schedule;
(b) the phase-out periods established in Annex III.04.2 (Tariff Elimination), with the purpose of accelerating the tariff reduction;
(c) the rules of origin established in Annex IV.03 (Specific Rules of Origin); and
(d) the Uniform Regulations on Customs Procedures.
9. The modifications referred to in paragraph 8 shall be implemented by the Parties in conformity with Annex I.06.9.
Article I.07. The Free Trade Coordinators
1. The Parties hereby establish the Free Trade Coordinators, comprising the Ministry of Foreign Trade in the case of Costa Rica and the CARICOM Secretariat in the case of CARICOM, whose primary function shall be to monitor the implementation of this Agreement.
2. The Free Trade Coordinators (hereinafter called "the Coordinators), shall:
(a) recommend to the Council the establishment of other committees, subcommittees and working groups as they consider necessary to assist the Council;
(b) follow up any decisions taken by the Council, where appropriate;
(c) submit and receive notifications pursuant to this Agreement, unless otherwise provided in this Agreement;
(d) consider any other matter that may affect the operation of this Agreement as mandated by the Council;
(e) arrange for administrative assistance to be provided to arbitration panels and to the work of the committees established under this Agreement;
(f) recommend to the Council the levels of remuneration and expenses that will be paid to the appointed panelists, experts, and their aides, in accordance with this agreement as set out in Annex I.07.2(f).
3. The Coordinators shall meet as often as required.
4. Each Party may request in writing at any time that a special meeting of the Coordinators be held. Such a meeting shall take place within thirty (30) days of receipt of the request.
Article I.08. Committees
1. There shall be the following Standing Committees which shall operate under the guidance of the Council:
(i) Committee on Market Access;
(ii) Committee on Trade in Services and Investment;
(iii) Committee on Anti-Competitive Business Practices;
(iv) Any other Committee which may be established by the Council pursuant to Article I.07.2(a).
2. Each Committee referred to in paragraph 1 shall, inter alia, have the following functions:
(i) monitor the implementation of the provisions of the Agreement, Annex or Appendix within its area of competence;
(ii) consider all matters relating to the subject area within its competence, including such matters as may be referred to it by the Parties;
(iii) consult on issues of mutual concern relating to its subject area which arise in international fora;
(iv) facilitate information exchange among the Parties;
(v) Create working groups or convene expert panels on topics of mutual interest relating to its subject area;
(vi) any other function assigned to it by the Council.
3. Each Committee shall meet as may be agreed by its members and shall regulate its own proceedings.
Chapter II. General Definitions
Article II.01. Definitions of General Application
For the purposes of this Agreement, except otherwise specified:
Citizen means, for each Party, a national of that Party as set out in Annex II.01;
Coordinators means the Free Trade Coordinators established by Article 1.07 (The Free Trade Coordinators);
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade of 1994, including its interpretative notes, which is part of the WTO Agreement;
Days means calendar days, including weekends and holidays;
Dispute Settlement Understanding (DSU) means the Understanding on Rules and Procedures Governing the Settlement of Disputes, which is part of the WTO Agreement;
Enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately owned or governmentally owned, including any corporation, trust, partnership, sole proprietorship, joint venture or other association;
Exporting Party means the Party from whose territory a good or service is exported;
GATT 1994 means the General Agreement on Tariffs and Trade of 1994, which is part of the WTO Agreement;
Harmonized System means the Harmonized Commodity Description and Coding System, including the General Classification Rules and its explanatory notes;
Heading means a tariff classification code of the Harmonized System at the fourdigit level;
Import Duty includes customs duty as defined in the national legislation of each Party and all other duties, taxes or charges that are collected on or in connection with the importation of goods, but does not include:
(a) charges equivalent to an internal tax imposed consistently with the relevant provisions of GATT 1994;
(b) any antidumping or countervailing duty that is applied pursuant to a Partys domestic law;
(c) any fee or other charge in connection with importation commensurate with the cost of services rendered; and
(d) any premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels;
Importing Party means the Party into whose territory a good or service is imported;
Identical or similar goods means "identical goods and "similar goods, respectively, as defined in the Customs Valuation Agreement;
Joint Council means the Joint Council of Costa Rica and CARICOM established by Article I.06 (The Joint Council);
Less developed countries of CARICOM means Antigua and Barbuda, Belize, Dominica, Grenada, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines;
Measure includes any law, regulation, procedure, administrative requirement or practice;
National means a natural person who has the nationality or citizenship of a Party in accordance with its legislation. It is understood that the term equally applies to a natural person who, in accordance with that Partys legislation, has the status of permanent resident in its territory;
Originating good means a good complying with the rules of origin established in Chapter IV (Rules of Origin);
Party means any State with respect to which this Agreement has entered into force in accordance with Article XIX.03 (Entry into Force) and Article XIX.04 (Provisional Application);
Person means a natural person or legal person;
Subheading means a tariff classification code of the Harmonized System at the six-digit level;
Tariff Elimination Schedule means the schedule referred to in the Annexes on Tariff Elimination Schedule to Chapter III (National Treatment and Market Access of Goods);
Territory means, for each Party, the territory of that Party as set out in Annex II.01; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994, or any successor Agreement to which both Parties are party.
Annex II.01. Specific Definitions
For the purposes of this Agreement, unless otherwise specified:
Citizen means:
(a) with respect to Costa Rica:
(i) Costa Ricans by birth, according to Article 13 of the Political Constitution of the Republic of Costa Rica;
(ii) Costa Ricans by naturalization, according to Article 14 of the Political Constitution of the Republic of Costa Rica;
(b) with respect to CARICOM:
(i) persons deriving their status as citizens of Member States of CARICOM from the law enforced in individual Member States of CARICOM;
(ii) persons having a connection with the Member States of CARICOM of a kind which entitles them to be regarded as belonging to or, if it be so expressed, as being natives or residents of those States for the purposes of the laws thereof relating to immigration;
Territory means:
(a) with respect to Costa Rica, the territory, air space and maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which it exercises, in accordance with international law and its domestic law, sovereign rights with respect to the natural resources of such areas; and
(b) for each Member State of CARICOM its territory, air space as well as its maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which that State exercises, in accordance with international law, jurisdiction and sovereign rights for the purpose of exploration and exploitation of the natural resources of such areas.
Part TWO. Trade In Goods
Chapter III. National Treatment and Access of Goods to the Market
Article III.01. Definitions
For purposes of this chapter:
Agricultural goods means the products listed in Annex 1 (Product Coverage) of the WTO Agreement on Agriculture with any subsequent changes agreed in the WTO to be automatically effective for this Agreement;
Advertising films means recorded visual media, with or without soundtracks, consisting essentially of images showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of either Party, provided that the films are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public, and provided that they are imported in packets each of which contains no more than one copy of each film and that do not form part of a larger consignment;
Commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one (1) U.S. dollar, or the equivalent amount in the currency of the other Party, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;
Consumed means:
(a) actually consumed; or
(b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good;
Duty-free means free of customs duties;