4. In this regard, the Parties:
(a) recognize their commitments to promote compliance and effective implementation of each Party’s environmental law;
(b) will strive to promote the conservation and sustainable use of biodiversity, and the preservation of traditional knowledge relevant to the conservation of biological diversity and the sustainable use of its components; and
(c) reaffirm their intention to strengthen cooperation on environmental matters.
5. Neither Party shall have recourse to Chapter 22 (Dispute Settlement) for any matter arising under this Chapter.
Article 17.2. SCOPE
This Chapter shall apply to measures adopted or maintained by the Parties affecting trade-related aspects of environmental issues.
Article 17.3. GENERAL PRINCIPLES
1. The Parties shall endeavor to seek mutually supportive trade and environmental policies and shall promote the adequate use of their resources, including biodiversity, in accordance with the objective of sustainable development.
2. The Parties reaffirm each other’s sovereign right over their natural resources, reiterate their sovereign rights to establish their own levels of environmental protection and their own environmental development, policies and priorities, and to adopt or modify accordingly their environmental laws, regulations and policies.
3. The Parties reaffirm their willingness to comply with their commitments under this Chapter, taking into account the differences in their levels of development and the respect of their current and future needs and aspirations.
Article 17.4. SPECIFIC COMMITMENTS
1. Each Party shall endeavor to ensure that its laws and policies provide for high levels of environmental protection and of sustainable use and conservation of its natural resources. Each Party shall also strive to continue improving its protection levels on those matters.
2. The Parties recognize that it is inappropriate to promote trade or investments by weakening or reducing the protections afforded in their environmental laws. Accordingly, neither Party shall derogate from, or offer to derogate from, such laws in a manner that weakens or reduces the protections afforded in those laws as an incentive to promote trade or investment between the Parties.
3. The Parties recognize that it is inappropriate to use their environmental laws and policies in a manner that constitutes a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on trade or investment.
4. The Parties recognize the importance that their environmental laws provide for a fair and transparent public participation mechanism.
5. Each Party shall endeavor to maintain its laws, regulations, and policies consistent and in compliance with multilateral environmental agreements (hereinafter referred to as “MEAs”) to which it is a party, as well as with international efforts towards achieving sustainable development.
Article 17.5. ENFORCEMENT OF LAWS
1. A Party shall not fail to effectively enforce its environmental laws and regulations, through a sustained or recurring course of action or inaction, in a manner affecting trade or investment between the Parties, after the date of entry into force of this Agreement.
2. Nothing in this Chapter shall be construed to empower a Party’s competent authorities to carry out activities oriented towards the enforcement of environmental legislation in the territory of the other Party.
Article 17.6. PROCEDURAL GUARANTEE
1. Each Party shall ensure that persons with a recognized interest under its law in a particular matter have appropriate access to tribunals for the enforcement of the Party’s environmental laws. Such tribunals may include administrative, quasi-judicial, judicial, or other relevant tribunals.
2. Each Party shall ensure that proceedings before such tribunals for the enforcement of its environmental laws are fair, equitable and transparent.
3. Each Party shall provide that the parties to such proceedings may seek remedies to ensure the enforcement of their rights under its laws.
Article 17.7. TRANSPARENCY
The Parties, in accordance with their respective laws, agree to develop, introduce, and implement, any measures aimed at protecting the environmental conditions that affect trade or investment between the Parties in a transparent manner.
Article 17.8. ENVIRONMENTAL COMMITTEE
1. The Parties hereby establish an Environmental Committee (hereinafter referred to as the “Committee”), which shall comprise appropriate senior officials within their administrations.
2. The Committee shall:
(a) establish an agreed work program of cooperative activities;
(b) oversee and evaluate the agreed cooperative activities;
(c) serve as a forum for dialogue on environmental matters of mutual interest;
(d) review the operation and outcomes of this Chapter; and
(e) take any other action under its functions whenever the Parties so agree.
3. The Committee may consider any other matters within the scope of this Chapter, and may also identify possible new areas of cooperation.
4. The Committee shall meet as necessary, to discuss matters of common interest and oversee the implementation of this Chapter, including the cooperative activities. Meetings may be conducted in person or by any technological means available to the Parties.
Article 17.9. CONTACT POINTS
After the date of entry into force of this Agreement, the Parties shall designate a contact point for environmental matters to facilitate communication between the Parties.
Article 17.10. ENVIRONMENTAL CONSULTATIONS
1. Any matter arising related to the interpretation or implementation of this Chapter shall be resolved amicably and bona fide by the Parties through direct dialogue, consultations, and cooperation.
2. A Party may request consultations with the other Party by delivering a written request to the contact point designated under Article 17.9, explaining the reasons for the consultations.
3. If the Parties fail to resolve the matter through their contact points, such matter may be discussed by the Committee
Article 17.11. COOPERATION
1. The Parties hereby agree to promote cooperation activities on mutual interest.
2. The Parties shall endeavor to assure that cooperation activities:
(a) are consistent with the programs, strategies of development, and national priorities of each Party;
(b) would create opportunities for the public to take part in the development and implementation of such activities; and
(c) would take into consideration the economy, and the legal system of each Party.
3. The areas of cooperation between the Parties in respect of this Chapter may include, but are not limited to:
(a) environmental management;
(b) institutional capacity for enforcement of environmental law; including MEAs;
(c) cleaner production technologies;
(d) forestry;
(e) water quality;
(f) air quality;
(g) energy efficiency and renewable energy;
(h) innovative environmental technologies, including technologies of carbon dioxide capture;
(i) measures for evaluating the vulnerability and adaptation to climate change; and
(j) such other environmental matters as the Parties may agree in accordance with their priorities.
Chapter 18. TRANSPARENCY
Article 18.1. PUBLICATION
1. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application respecting any matter covered by this Agreement are promptly published, including on the electronic means, or otherwise made available in such a manner as to enable interested persons and the other Party to become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measures that it proposes to adopt; and
(b) provide interested persons and the other Party a reasonable opportunity to comment on such proposed measures.
Article 18.2. NOTIFICATION AND PROVISION OF INFORMATION
1. To the maximum extent possible, each Party shall notify the other Party of any proposed or actual measure that the Party considers might materially affect the operation of this Agreement or otherwise substantially affect that other Party's interests under this Agreement.
2. Upon request of the other Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, whether or not that other Party has been previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
4. Any notification, request, or information under this Article shall be provided to the other Party through the relevant contact points, unless otherwise agreed by the Parties.
Article 18.3. ADMINISTRATIVE PROCEEDINGS
With a view to administering in a consistent, impartial and reasonable manner all measures of general application respecting to any matter covered by this Agreement, each Party shall ensure, in its administrative proceedings applying measures referred to in Article 18.1 to particular persons, goods, or services of the other Party in specific cases, that:
(a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with the Party’s procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and
(c) its procedures are in accordance with its law.
Article 18.4. REVIEW AND APPEAL
1. Each Party shall establish or maintain judicial, quasi-judicial, or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of final administrative actions regarding matters covered by this Agreement. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by the Party’s law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its law, that such decision shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action at issue.
Article 18.5. DEFINITIONS
For the purposes of this Chapter:
administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies to a particular person, good, or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Chapter 19. COOPERATION
Article 19.1. SCOPE
1. The Parties affirm the importance of all forms of cooperation, with particular attention to the economic, technical and commercial cooperation, as a means to contribute to the implementation of the objectives of this Chapter, taking into account their different levels of development and the size of their economies.
2. Cooperation between the Parties under this Chapter will supplement the cooperation and cooperative activities between the Parties set out in other Chapters of this Agreement and in other bilateral cooperation mechanisms.
3. The Parties shall endeavor to give priority to cooperation in the fields identified in this Chapter; however, this does not constitute a limitation to the inclusion of other sectors or areas.
Article 19.2. OBJECTIVE
The objective of this Chapter is to facilitate the establishment of close cooperation aimed, inter alia, at:
(a) strengthening the capacities of the Parties to maximize the opportunities and benefits of this Agreement;
(b) developing cooperation at bilateral, regional or multilateral level;
(c) promoting economic and social development;
(d) stimulating productive synergies, creating new opportunities for trade and investment and promoting competitiveness and innovation;
(e) supporting and promoting the development of micro, small and medium-sized enterprises (hereinafter referred to as the “MSMEs”) in order to achieve their insertion in international trade or global value chains;
(f) increasing the level of cooperation activities, given the cooperative relationship between the Parties;
(g) encouraging the presence of the Parties and their goods and services in international markets; and
(h) supporting and complementing the efforts of the Parties to implement the priorities set in their own policies and development strategies.
Article 19.3. METHODS AND MODALITIES
1. Cooperation between the Parties will be implemented through the tools, resources and mechanisms available to them, following the rules and procedures and through the appropriate agencies.
2. In particular, for the identification, development and implementation of projects, the Parties may use instruments and modalities, such as exchange of information, experiences and best practices, technical assistance and refundable and non-refundable financial cooperation including the triangular cooperation among others.
Article 19.4. COOPERATION COMMITTEE
1. The Parties hereby establish a Cooperation Committee (hereinafter referred to as the “Committee”) comprising representatives of each Party.
2. For the purposes of this Chapter, the Committee's functions shall include:
(a) agreeing on and developing areas of cooperation between the Parties;
(b) establishing a work plan for the development of cooperation;
(c) collecting and consolidating the work plans of cooperation developed by each of the committees formed within this Agreement;
(d) reviewing and evaluating proposals for cooperation;
(e) monitoring programs, projects and other initiatives of cooperation;
(f) ensuring the implementation and fulfillment of the objectives of the programs, projects and other initiatives of cooperation;
(g) providing support and advice for the presentation of programs, projects and other initiatives of cooperation, in accordance with the strategic priorities of the Parties; and
(h) carrying out other functions as may be assigned by the Joint Committee or agreed by the Parties.
3. Unless the Parties otherwise agree, the Committee shall meet at least once a year. Meetings may be conducted in person or by any technological means available to the Parties.
Article 19.5. CONTACT POINTS
1. The Parties hereby designate contact points to facilitate communication on possible cooperation activities. Contact points will have the responsibility to work with their government agencies, business sector representatives and educational and research institutions for the operation of this Chapter.
2. For the implementation of this Chapter, the following contact points are designated:
(a) for Korea, Ministry of Trade, Industry and Energy;
(b) for Costa Rica, Ministry of Foreign Trade (Ministerio de Comercio Exterior);
(c) for El Salvador, Ministry of Economy (Ministerio de Economía);
(d) for Honduras, Secretariat of Economic Development (Secretaría de Desarrollo Económico);
(e) for Nicaragua, Ministry of Trade, Industry and Development (Ministerio de Fomento, Industria y Comercio); and
(f) for Panama; Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), or their successors or the office that the Parties notify.
Article 19.6. AREAS OF COOPERATION
1. The Parties will promote the use of instruments and mechanisms of cooperation through mutually advantageous conditions, including but not limited to the following areas:
(a) micro, small and medium-sized enterprises;
(b) culture (including tourism and audiovisual services);
(c) promotion of a more favorable business environment;
(d) healthcare industry;
(e) agriculture, livestock (including agro-industrial);
(f) industry and commerce (including textile and apparel);
(g) science and technology (including information technology and communication);
(h) transport, logistics and distribution;
(i) trade and sustainable development (including forestry and renewable energy);
(j) fisheries and aquaculture;
(k) financial services sector; (1) and
2. The Parties shall endeavor to develop, promote and strengthen cooperation in the areas described in paragraph 1 as well as the activities or areas of cooperation established in other Chapters of this Agreement.
Article 19.7. DISPUTE SETTLEMENT
Neither Party shall have recourse to Chapter 22 (Dispute Settlement) for any matter arising under this Chapter
Chapter 20. COMPETITION POLICY
Article 20.1. OBJECTIVE AND PRINCIPLES
1. The objective of this Chapter is to prevent that the benefits of trade liberalization from being undermined by conducts or transactions that may restrict or distort competition in the markets of the Parties, by ensuring implementation of competition policies, and promoting cooperation and coordination between their competition authorities on matters covered by this Chapter.
2. The Parties therefore agree that the following are incompatible with this Agreement, in so far as they may affect trade between the Parties:
(a) agreements between enterprises, decisions by associations of enterprises and concerted practices, which have as their object or effect the prevention, restriction or distortion of competition;
(b) any abuse by one or more enterprises of a dominant position or a substantial market power or notable market participation; and
(c) concentrations between enterprises, which significantly impede effective competition, as specified in their respective competition laws.