Article 12.09. Exceptions
1. Nothing in this chapter shall be construed as preventing a party maintains adopts or prudential measures such as:
a) Protect fund managers, investors, depositors, participants in the financial market, holders or beneficiaries of policies, or persons of fiduciary duties owed by a financial institution or a Financial Services service;
b) Maintaining security, integrity, responsibility or financial soundness of financial institutions or Financial Services Service; and
c) Ensuring the integrity and stability of the financial system of a party.
2. Nothing in this chapter applies to non-discriminatory application of general measures taken by a public entity in the conduct of monetary policies or policies related credit or exchange rate policies. This paragraph shall not affect the obligations of any Party deriving from investment performance requirements with respect to measures covered by chapter 10 (investment) or article 12.17.
3. Article 12.06 does not apply to the issuance of exclusive rights that makes a party to a financial institution, to provide a Financial Services referred to in paragraph 2 (b) of Article 12.02.
4. Notwithstanding paragraphs 1 to 3 of Article 12.17, a Party may prevent or limit transfers by a financial institution or a Financial Services Service, or for the benefit of an affiliate of related to such person or institution or in such a service provider, through the fair and non-discriminatory application of measures relating to maintenance of security, integrity, responsibility or financial soundness of financial institutions or Financial Services Service. Nothing in this paragraph shall be without prejudice to any other provision of this agreement that permits a party to restrict transfers.
Article 12.10 . Transparency
1. In addition to the provisions of article 18.03 (publication), each Party shall ensure that any measure taken on matters related to this chapter is published
Opportunity formally to disclose or with which it was addressed by any other written means.
2. Regulatory authorities of each Party shall make available to all interested parties information concerning the requirements to fill and submit a request to the supply of financial services.
3. At the request of the applicant, the regulatory authority shall inform the applicant of the status of its application. If such authority requires additional information from the applicant shall notify, without undue delay.
4. Each of the regulatory authorities shall within a period of one hundred and twenty (120 days), an administrative decision on a complete application relating to the provision of a financial service, submitted by an investor in a financial institution, by a financial institution or a Financial Services Service of the other party. The Authority shall notify the applicant without delay. An application shall not be considered complete until all relevant hearings are held and all necessary information is received. Where it is not feasible to issue a decision within one hundred and twenty (120 days), the regulatory authority shall notify the applicant without undue delay and shall endeavour to make the decision within sixty (60) days.
5. Nothing in this chapter requires a party to disclose or allow access to:
a) Information related to the accounts and financial affairs of individual customers of financial institutions or Financial Services service; or
b) Any confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or prejudice legitimate commercial interests of particular enterprises.
Article 12.11. Financial Services Committee
1. The parties establish the Financial Services Committee as set out in annex 12.11.
2. The Committee shall hear matters relating to this chapter and without prejudice to article 1905 (2) (Committees), shall have the following functions:
a) Monitoring the implementation of this chapter and its further development;
b) Consider issues regarding Financial Services that are submitted by a party;
c) Participate in the dispute settlement procedures in accordance with articles 12.18 and 12.19; and
d) To facilitate the exchange of information between supervisory authorities and cooperate in the field of advice on prudential regulation, ensuring the harmonization of regulatory frameworks as well as other policies, when it deems appropriate.
3. The Committee shall meet when necessary or at the request of one of the Parties in evaluating the implementation of this chapter.
Article 12.12. Consultations
1. Without prejudice to article 20.06 (consultations), a Party may request consultations with the other Party regarding any matter arising under this Agreement that affects financial services. The other party shall favourably consider that request.
Consulting the parties to the Committee shall make available the results of their consultations, during meetings of the Tribunal.
2. In consultations under this article shall include officials of the authorities specified in annex 12.11.
3. A Party may request that regulatory authorities of the other party participate in consultations under this article or to discuss measures of general application of that other party which may affect the operations of financial institutions or Financial Services service in the territory of the party requested that the consultations.
4. Nothing in this article shall be construed to require regulatory authorities participating in consultations to disclose information under paragraph 3 or to act in a manner that would interfere with specific matters regulatory supervision, administration and implementation of measures.
5. In cases where, for the purpose of monitoring, information concerning a Party may require a financial institution in the territory of the other party or on Financial Services service in the territory of the other party, the party may have recourse to a regulatory authority responsible in that territory the other party to seek information.
Article 12.13. New Financial Services and Data Processing
1. Each Party shall permit a financial institution of the other party to provide any new financial service similar to those of a type that party, in accordance with its laws, to provide to its financial institutions. A Party may determine the institutional and juridical form through which the service to be provided and may require authorization for the provision of the same. Where such authorization is required, the decision shall be made within a reasonable time and may only be refused for prudential reasons, provided that they are not contrary to the legislation of the party, and articles and 12.06 12.07.
2. Each Party shall allow a financial institutions of the other Party to transfer, for processing information, within or outside the territory of the Party, using any means authorized therein when necessary for carrying out the business activities of such institutions.
3. Each Party undertakes to respect the confidentiality of the information processed within its territory by a financial institution located in the other party.
Article 12.14. Senior Management and Boards of Directors or Governing Council
1. No party may require financial institutions of the other party to employ staff of a particular nationality to senior management positions of business or other charges.
2. No party may require that the Board of Directors or the board of directors of a financial institution of the other party is incorporated by nationals of the party, by resident in its territory or a combination of the two.
Article 12.15. Reserves and Specific Commitments
1. Articles 12.04 12.07 The, 12.14 12.13 and do not apply to:
a) Any Non-Conforming Measure existing Non-Conforming Measure that is maintained by a party at the national level, as indicated in section A of its schedule in annex VI;
b) The continuation or prompt renewal of any Non-Conforming Measure referred to in subparagraph (a); or
c) The modification of any Non-Conforming Measure referred to in subparagraph (a) in both the amendment does not decrease the conformity of the measure with the articles 12.04 12.07 12.13 12.14 and, as the measure was in force immediately prior to the modification.
2. Articles 12.04 12.07 The, 12.14 12.13 and do not apply to any measure that adopts or maintains a Party in accordance with section B of annex VI to its schedule.
3. Section C of the list of each Party in Annex VI may establish certain specific commitments by that Party.
4. Where a Party has set out in chapters 10 (investment) and eleven (cross-border trade in services), a reservation to issues relating to local presence, National Treatment and most-favoured-nation treatment, and senior management and board of directors or boards, the reservation shall be construed as references to articles 12.04 12.07 The 12.13 12.14, and, as the case may be, to the extent that the measure, sector and subsector activity or set out in the reservation covered by this chapter.
Article 12.16. Denial of Benefits
A Party may deny, partially or totally, the benefits of this chapter a Financial Services to service the other party or a Financial Services Service of the other party, subject to prior notification and consultation in accordance with articles 12.10 and 12.12, where the party establishes that the service is being provided by an enterprise that has no substantial business activities in the territory of that other party and which is owned by persons of a non- party or under the control of the same.
Article 12.17. Transfers
1. Each Party shall permit all transfers relating to investments in its territory of an investor of the other party, be made freely and without delay. Such transfers include:
a) Profits, dividends, interests, capital gains, royalties, fees payments for administration, technical assistance and other fees; returns and other amounts in kind derived from the investment;
b) Products derived from the sale or the total or partial liquidation of the investment;
c) Payments made under a contract of which is a party to an investor or investment including its payments made pursuant to a loan agreement;
d) Payments made pursuant to article 10.11 (expropriation and compensation); and
e) Payments arising out of a dispute settlement procedure between an investor and a party of the other party pursuant to this chapter and section B of chapter 10 (investment).
2. Each Party shall permit transfers to be made in a freely convertible currency at the market rate of exchange prevailing on the date of transfer.
3. No party may require its investors to transfers carried out their income, profits, or other profits or amounts derived from investments carried out in the territory of the other party or attributable to the same or in case shall not to transfer.
4. Notwithstanding paragraphs 1 and 2, a Party may establish mechanisms to prevent a transfer through the equitable and non-discriminatory application of its laws in the following cases:
a) Bankruptcy or insolvency or the protection of the rights of creditors;
b) Criminal or administrative rulings in strong;
c) Failure to submit reports of transfers of currency or other monetary instruments;
d) Ensuring compliance with orders or awards rendered in contentious proceedings; or
e) Relating to ensure compliance with laws and regulations for the issuance of securities, and trade operations.
5. Paragraph 3 shall not be interpreted as an impediment to a party through the application of their legislation in an equitable and non-discriminatory manner, any measure to impose related subparagraphs of paragraph 4.
Article 12.18. Settlement of Disputes between the Parties
1. In terms of this chapter, amending article 20 (dispute settlement) applies to the settlement of disputes between the parties concerning this chapter.
2. The Financial Services Committee shall be by consensus a list of up to eighteen (18) individuals comprising three (3) of each party individuals who have the skills and necessary provisions to serve as arbitrators in disputes related to this chapter. Members of the roster shall, in addition to satisfy the requirements set out in Chapter 20 (dispute settlement), have expertise or experience in financial matters arising from the exercise of responsibilities in the financial sector or in its regulation.
3. For the purposes of the Constitution of the arbitral group shall be used the list referred to in paragraph 2, except that warring parties agree that may be part of the arbitral group individuals not included in the list provided that they comply with the requirements established in paragraph 2. The Chairman shall always be selected from the roster.
4. In any dispute arbitration where the Panel has found that a measure is inconsistent with the obligations of this chapter as appropriate the suspension of benefits referred to in Chapter 20 (dispute settlement) and the measure affects:
a) Only the financial services sector, the complaining party may suspend benefits only in this sector;
b) The financial services sector and any other sectors, the complaining party may suspend benefits in the financial services sector that have an effect equivalent to the effect of the measure in the financial services sector; or
c) Any other sector other than the Financial Services, the complaining party may not suspend benefits in the financial services sector.
Article 12.19. Investment Dispute Settlement In Financial Services between an Investor of One Party and Party a
1. Section B of chapter 10 (investment) is incorporated into chapter and this is an integral part thereof.
2. Where an investor of the other Party in accordance with article 10.17 (claim by an investor of a Party on its own behalf) or 10.18 (claim by an investor of a Party on behalf of an enterprise) and under section B of chapter 10 (investment) referred to arbitration a claim against a party and the opposing side invokes article 1209 to request it, the Tribunal shall refer the matter in writing to the Committee for its decision. The Tribunal may not proceed pending receipt of a decision in accordance with the terms of this article.
3. In a referral of the matter pursuant to paragraph 1, the Committee shall decide whether article 1209 is a valid defence to the claim of the investor and the extent to which it is. The Committee shall transmit a copy of its decision to the Tribunal and to the Commission. Such decision shall be binding on the Tribunal.
4. Where the Committee has not taken a decision within sixty (60) days of the receipt of the referral under paragraph 1, the opposing side or the party of the investor litigants may request the establishment of an arbitral panel under Article 2008 (Request for the integration of the arbitral group). The arbitral panel shall be constituted in accordance with article 12.18 and shall submit to the Committee to the Tribunal and its final determination shall be binding on the Tribunal.
5. When it has requested the establishment of an arbitral group under the terms of paragraph 4 within a period of ten (10) days after the expiry of the period of sixty (60) days referred to in that paragraph, the tribunal may proceed to decide the matter.
Chapter 13. Telecommunications
Article 13.01. Exclusion
This chapter does not apply between Panama and Costa RIC to.
Article 13.02. Definitions
For purposes of this chapter:
Internal communications of an enterprise subject to: (1), annex 13.03 Telecommunications communicates through which an enterprise:
a) Internally or with or among its subsidiaries and branches and subsidiaries, as defined by each Party; or
b) A non-commercial basis with other persons that are fundamental to the economic activity of the enterprise and that have a continuing contractual relationship with it;
But does not include telecommunications services supplied to persons other than those described in this definition;
Authorized: the terminal equipment or other equipment that has been adopted to connect to the public telecommunications network in accordance with the conformity assessment procedures of a party;
Terminal equipment means any device capable of analogue or digital processing, commute, marking, receiving or transmitting signals by electromagnetic means and be connected to the public telecommunications network, through broadcast or cable connections, at a terminal;
Measures related to standardization: "" standardization measures as defined in article 9.01 (definitions);
Monopoly means an entity, including a consortium or government agency that is maintained or designated according to its legislation, if it so permits, as the sole supplier of public telecommunications networks or services in any relevant market in the territory of a party;
Conformity assessment procedure: "conformity assessment procedure" as defined in article 9.01 (definitions) and includes the procedures referred to in annex 13.03 (2);
Protocol: a set of rules and formats governing the exchange of information between two peer entities (2), for the purpose of transfer of information and data;
Main incumbent provider or operator: a supplier which has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for telecommunications services as a result of control over essential facilities or use of its position in the market;
The network of terminal point: the final demarcation of the public telecommunications network user facilities;
Subject to private telecommunications network: 13.03 (annex 1), the telecommunications network used exclusively for internal communications between persons of a company or predetermined;
Public telecommunications network means the telecommunications network used to exploit commercially telecommunications services designed to meet the needs of the general public, excluding telecommunications terminal equipment or users of telecommunications networks that are beyond the point of the network;
Telecommunications service means a service provided by means of transmission and reception of signals by physical line, radioelectricidad, optical or other electromagnetic systems, but does not mean cable broadcasting or other electromagnetic distribution of radio or television programming;
Public telecommunications service telecommunications means any service that requires a party explicitly or indeed to be offered to the public generally, including telegraph, telex, telephone and data transmission typically involves real-time transmission of information provided by the user between two or more points without any change of end-to-end "" in the form or content of the information of the user;
Improved telecommunications services employing services: computer processing systems that:
a) Acting on the format, content and protocol, code or similar aspects of information transmitted user;
b) Additional information provided to the client, or different restructured; or
c) Involve user interaction with the stored information; and
Telecommunications means any emission, transmission or reception of signs, signals, writings, images and sounds and information on any kind of physical line, radioelectricidad, optical or other electromagnetic systems.
Article 13.03. Scope of Application
1. This chapter applies to:
a) Subject to the provisions of annex 13.03 (1); measures adopted or maintained by a Party relating to access to and use of public telecommunications networks or services by persons of the other party, including pricing and access and use by private persons operating such networks so as to carry out their internal communications of enterprises;
b) Measures adopted or maintained by a Party relating to the provision of enhanced services by persons of the other party in the territory of the first or across its borders; and
c) Standardization measures relating to the attachment of terminal or other equipment to the public telecommunications networks.
2. This chapter does not apply to measures that a party adopts or maintains relating to broadcast or cable distribution of radio or television programming, except that they are intended to ensure that persons operating broadcast stations and cable systems have access to and use of public telecommunications networks and services.
3. Nothing in this chapter shall be construed as:
a) To require a party to authorize a person of the other party to establish, construction, acquisition, leases, operate or supply telecommunications networks or services;
b) Oblige a party or that it may require a person to establish, construction, acquisition, leases, operate or supply telecommunications networks or services not offered to the public generally;
c) Prevent a Party from prohibiting persons operating private networks from using their telecommunications networks or to supply public telecommunications networks or services to third persons; or
d) To require a party to compel any person engaged in the broadcast or cable distribution of radio or television programming to make available its cable broadcast or as a public telecommunications network.
Article 13.04. Access to Public Telecommunications Networks and Services and Its Use
1. For the purposes of this article, "" non-discriminatory terms and conditions no less favourable than those accorded to any other customer or user of public telecommunications networks or services in like circumstances.
2. Each Party shall ensure that persons of the other party have access to and use of any public telecommunications network or service offered in its territory or across borders, including private leased circuits on reasonable and non-discriminatory terms and conditions, for the conduct of business, including as set out in the other paragraphs of this article.
3. Subject to paragraphs 7, 8 and Annex 13.03 (1), each Party shall ensure that persons of the other party are permitted to:
a) Purchase or lease and interconnect terminal equipment or other equipment that interfaces with the public telecommunications network;
b) Interconnect private owned or leased circuits with public telecommunications networks in the territory of that Party or across its borders through marking including direct access to and from their customers or users or with leased circuits or owned by another person on mutually agreed terms and conditions by those persons, in accordance with annex 1304;
c) Functions switching, marking and processing; and
d) Operating protocols use of their choice in accordance with the technical plans of each party.
4. Without prejudice to the applicable legislation, each Party shall ensure that the pricing of public telecommunications services reflects economic costs directly related to providing the services. Nothing in this paragraph shall be construed as preventing a party from establishing cross-subsidization between public telecommunications services.
5. Subject to the provisions of annex 13.03 (1), each Party shall ensure that persons of the other Party may use public telecommunications networks or services to transmit the information in its territory or across its borders including for internal communications of enterprises, and for access to information contained in databases or otherwise stored in machine-readable form by a machine in the territory of the other party.
6. In addition to the provisions of article 21.02 (general exceptions), nothing in this chapter shall be construed as preventing a Party may adopt or apply any measure necessary to:
a) To ensure the security and confidentiality of messages; or
b) Protect the privacy of subscribers to public services or telecomuni caciones networks.
7. In addition to the provisions of article 13.06, each Party shall ensure that no condition is imposed more access to public telecommunications networks or services and their use, that necessary to:
a) Safeguard the public service responsibilities of providers of public telecommunications networks or services. in particular their ability to make their networks or services available to the public generally or;
b) Protect the technical integrity of public telecommunications networks or services.
8. Provided that conditions for access to public telecommunications networks or services and their use fulfil the criteria set out in paragraph 7, such conditions may include:
a) Restrictions on resale or shared use of such services;
b) Requirements for the use of specific technical interfaces, interface, including protocols for interconnection with such networks or services;
c) Restrictions on interconnection of private owned or leased circuits with such networks or services or with leased circuits or owned by another person; and when they are used for the supply of public telecommunications networks or services; and
d) Procedures for licensing, permitting, concessions, records or notifications, adopted or maintained, are transparent and to the processing of applications is expeditiously resolved.
Article 13.05. Conditions for the Provision of Enhanced Services
1. Each Party shall ensure that:
a) Any procedure that it adopts or maintains for licensing, permitting, concessions, records or notifications relating to the provision of enhanced services is transparent and non-discriminatory and that applications are resolved expeditiously; and
b) The information required under such procedures is in accordance with the legislation in force in the parties to initiate the provision of the Service, which may include services or equipment or other terminal equipment the applicant to comply with applicable technical standards or regulations of the party.
2. Without prejudice to the legislation of each party, no Party shall require a service provider improved:
a) Such services to the public generally;
b) Tariffs or justify their prices in accordance with its costs;
c) A fee or price;
d) Its interconnect networks with any particular customer or network; or
e) Satisfy any standard or technical regulation for interconnection other than for interconnection to a public telecommunications network.
3. Notwithstanding paragraph 2 (c), a Party may require the filing of a tariff by:
a) A service provider to remedy a practice that of provider has found that the Party in a particular case as anti-competitive, in accordance with its laws; or
b) A monopoly, main provider or incumbent operator to implement the provisions of article 13.07.