3. The provisions of this Chapter relating to the procedure of the arbitral tribunal shall apply mutatis mutandis to the procedure provided for in this Article.
Article 13.17. Suspension of Concessions or other Obligations
1. If the arbitral tribunal, pursuant to Article 13.16 (Compliance Review), determines that the Party complained against fails to bring the measure found to be inconsistent with this Agreement into conformity with the recommendations and rulings of the arbitral tribunal within the reasonable period of time, or the Party complained against expresses in writing that it will not implement the recommendations and rulings, that Party shall, if so requested by the complaining Party, enter into negotiations with the complaining Party, with a view to agreeing on mutually acceptable compensation. If the Parties do not reach agreement on compensation within 20 days after the commencement of negotiations for compensation, or if no such request has been made, the complaining Party may suspend the application of concessions or other obligations to the Party complained against. The complaining Party shall notify the Party complained against 30 days before suspending concessions or other obligations. The notification shall indicate the level and scope of the suspension of concessions or other obligations.
2. The level of suspension of concessions or other obligations shall be equivalent to the level of nullification or impairment.
3. The suspension of concessions or other obligations shall be temporary measures and shall only apply until the measure found to be inconsistent with this Treaty has been eliminated or a mutually satisfactory solution has been reached.
4. When considering which concessions or other obligations to suspend:
(a) the complaining Party shall first seek to suspend concessions or other obligations in the same sector or sectors affected by the measure that the arbitral tribunal has found to be inconsistent with the obligations under this Agreement; and
(b) if the complaining Party considers that it is not practicable or effective to suspend concessions or other obligations in the same sector or sectors, it may suspend concessions or other obligations in other sectors. The communication announcing such a decision shall state the reasons on which it is based.
5. Upon written request by the Party complained against, the original arbitral tribunal shall determine whether the level of concessions or other obligations to be suspended by the complaining Party is excessive in accordance with paragraph 2 and/or whether paragraph 3 has not been followed. If the arbitral tribunal cannot be established with its original members, it shall be composed in accordance with the procedures set forth in Article 13.7 (Composition of an Arbitral Tribunal).
6. The arbitral tribunal shall make its determination within 60 days of the request made pursuant to paragraph 5, or from the date on which the last arbitrator is appointed if the arbitral tribunal cannot be established with its original members,
7. The complaining Party may not suspend the application of concessions or other obligations before the arbitral tribunal's determination is made in accordance with this Article.
Article 13.18. Post-Suspension
1. Without prejudice to the procedures provided for in Article 13.17 (Suspension of Concessions or Other Obligations), if the Party complained against considers that it has complied with the final report of the arbitral tribunal, it may notify the complaining Party in writing to request the termination of the suspension of concessions or other obligations.
2. If the complaining Party agrees, it shall reinstate any suspended concessions or other obligations pursuant to Article 13.17 (Suspension of Concessions or Other Obligations). If the complaining Party does not agree, it may refer the matter to the original arbitral tribunal within 60 days after receipt of such written notice. Otherwise, the complaining Party shall promptly stop the suspension of concessions or other obligations.
3. The arbitral tribunal shall issue its report within 60 days of the referral of the matter by the complaining Party pursuant to paragraph 1. If the arbitral tribunal finds that the Party complained against has eliminated the non-conformity, the complaining Party shall promptly cease the suspension of concessions or other obligations.
Article 13.19. Private Rights
Neither Party may provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Treaty.
Article 13.20. Deadlines
Any time limit mentioned in this Chapter and in Annex 6 (Rules of Procedure of the Arbitral Tribunal) may be modified by mutual agreement of the Parties.
Chapter 14. Administration
Article 14.1. The Free Trade Commission
1. The Parties establish the Free Trade Commission (Commission), composed of representatives of the Parties as follows:
(a) in the case of China, the Ministry of Commerce (MOFCOM); and.
(b) in the case of Ecuador, the Ministry of Production, Foreign Trade, Investment and Fisheries (MPCEIP).
2. The Commission shall:
(a) supervise the implementation of this Treaty;
(b) the further development of this Treaty;
(c) to try to resolve any differences that may arise with respect to the interpretation or application of this Agreement;
(d) oversee the work of all committees and working groups established under this Treaty;
(e) establish the amounts of remuneration and expenses to be paid to the panelists; y
(f) consider any other matters that may affect the operation of this Treaty.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) promote the implementation of the objectives of the Treaty through consultation on any modification of:
(i) the Schedules attached to Annex 2 (Tariff Commitment Schedules), accelerating tariff elimination,
(ii) Chapter 4 (Rules of Origin and Application Procedures),
(c) adopt any other measures that the Parties may agree upon in the exercise of their functions.
4. The Commission shall establish its rules and procedures. All decisions of the Commission shall be taken by mutual agreement.
5. The Commission shall meet once a year in regular session, or as mutually determined by the Parties. The regular sessions of the Commission shall be organized and chaired alternately by each Party.
Article 14.2. Administration of the Dispute Resolution Procedure
1. Each Party shall designate an office to provide administrative assistance to arbitral tribunals established under Chapter 13 (Dispute Settlement) and to perform such other functions as the Commission may direct.
2. Each Party shall be responsible for the operation and costs of its designated office, and shall notify the Commission of the coordinates of its office.
Chapter 15. Exceptions
Article 15.1. General Exceptions
For the purposes of this Agreement, Article XX of the GATT 1994 and its interpretative notes are incorporated into and form an integral part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XX (b) of GATT 1994 include environmental measures necessary to protect human, animal or plant life or health, and that Article XX(g) of GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in goods.
Article 15.2. Security Exceptions
For the purposes of this Treaty, Article XXI of GATT 1994 and its interpretative notes are incorporated into and form part of this Treaty, mutatis mutandis.
Article 15.3. Taxation
1. For the purposes of this Article:
tax treaty means a double taxation avoidance treaty or other international tax agreement or provision in force between the Parties; and
tax measures do not include a "customs duty" as defined in Article 2.1 (Definitions of General Application).
2. Except as provided in this Article, nothing in this Agreement shall apply to taxation measures.
3. This Agreement shall only grant rights or impose obligations with respect to taxation measures where corresponding rights or obligations are also granted or imposed under Article II of GATT 1994.
4. Nothing in this Agreement shall affect the rights and obligations of the Parties under any tax treaty in force between the Parties. In the event of any inconsistency relating to a taxation measure between this Agreement and such tax treaty, the latter shall prevail to the extent of the inconsistency. In the case of a tax treaty between the Parties, the competent authorities under such treaty shall be solely responsible for determining whether there is any inconsistency between this Agreement and such treaty.
Article 15.4. Balance of Payments Safeguard Measures
When the Party is in serious balance of payments and external financial difficulties or threat thereof, it may, in accordance with the WTO Agreement and in accordance with the Articles of Agreement of the International Monetary Fund, take such measures as it deems necessary.
Article 15.5. Disclosure of Information
Nothing in this Agreement shall be construed to require a Party to provide or permit access to confidential information, the disclosure of which shall not be subject to any obligation:
(a) hinders law enforcement; or
(b) is contrary to the public interest, to the Party's laws protecting personal privacy or to the financial affairs and accounts of individual customers of financial institutions; or
(c) harm the legitimate commercial interests of certain companies, whether public or private.
Chapter 16. Economic Cooperation
Article 16.1. General Objectives
1. The Parties shall establish close cooperation whose objectives, among others, are:
a) to promote economic and social development;
b) increase and deepen the level of cooperation, while taking into account the partnership relationship between the Parties;
c) increase and deepen the level of collaborative activities between the Parties and deepen them in areas of mutual interest;
d) strengthen the capacities and competitiveness of the Parties to maximize the opportunities and benefits derived from this Agreement;
e) stimulate productive synergies, create new opportunities for trade and investment, and promote competitiveness and innovation;
f) achieve a greater impact on the transfer of scientific and technological knowledge, research and development, innovation and entrepreneurship;
g) to increase the export capacity of small and medium-sized enterprises (hereinafter "SMEs")(8) ; and.
h) generate a higher and deeper level of supply chain linkages.
2. The Parties agree that economic and technical cooperation on this Agreement, taking into account the national capabilities of each Party, has will maximize the mutual benefits of the implementation and utilization of this Agreement.
Article 16.2. Scope
1. The Parties reaffirm the importance of all forms of cooperation as a means of contributing to the implementation of the objectives and principles derived from this Treaty.
2. The cooperation provided for in this Chapter shall complement the cooperation and the cooperation activities between the Parties established in other Chapters of this Agreement.
Article 16.3. Economic Cooperation
1. The objectives of the economic cooperation will be:
a) build on existing agreements or arrangements already in place for trade and economic cooperation; and
b) to advance and strengthen trade and economic relations between the Parties, taking into account all forms and levels of cooperation.
2. In pursuing the objectives of Article 16.1 (General Objectives), the Parties shall promote and facilitate, as appropriate, the following activities, including, but not limited to:
a) capacity building and technical assistance;
b) conferences, seminars, expert dialogues, training programs and workshops;
c) technology transfer in areas of mutual interest;
d) mutual access to academic, industrial and business networks;
e) the design of technological innovation models based on public and/or private cooperation;
f) political dialogue and regular exchanges of information and views on ways to promote and expand trade between the Parties;
g) keep each other informed about important economic and trade issues as well as obstacles to expanding economic cooperation;
h) support dialogue and the exchange of experiences between the Parties' respective business communities;
i) stimulate and facilitate public and/or private sector actions in areas of economic interest;
j) joint elaboration of technical studies and projects of economic interest in accordance with the economic development needs identified by the Parties;
k) provide assistance and facilities to businessmen and trade missions visiting the other Party with the knowledge and support of the relevant agencies; and
l) other forms of cooperation to be agreed upon by the Parties.
Article 16.4. Agricultural Cooperation
The Parties recognize that agriculture constitutes a basic activity for both Parties, and that the improvement of this economic field will improve the quality of life and social and economic development in their territories.
To achieve these objectives, and in accordance with their domestic laws, regulations and procedures, the Parties shall cooperate, inter alia, in activities to:
a) to promote sustainable rural development through the exchange of experiences, the generation of partnerships and the implementation of projects in areas of mutual interest such as: agricultural innovation and technology transfer for the development of small-scale agriculture, the conservation and management of water resources for agricultural use, the application of good agricultural and agro- industrial practices, including a gender approach in development policies and strategies, among others;
b) promote the exchange of information relevant to agricultural exports between the two markets;
c) to develop a training program aimed at leading producers, technicians and professionals for the application of innovative technologies to increase and improve the productivity and competitiveness of agriculture and livestock, particularly value-added products;
d) strengthen the institutional capacities of government agencies, research institutions, universities and companies in the areas of scientific research and technology transfer and validation, including, among others, soil management and nutrition, irrigation and drainage, animal nutrition, protected environment horticulture, traceability and safety, biofuels, and control of best manufacturing practices, food safety, diagnostic protocols (diseases) and control systems in the agricultural and livestock sectors;
e) develop and validate technologies for agricultural and livestock production with higher quality and lower environmental impact;
f) support, through market access, the production of non-traditional crops with a significant level of biodiversity components;
g) to support, through the improvement of laboratories and the construction of industrial and technological parks, the innovation of agroindustrial products, as well as traceability systems; and
h) strengthen cooperation in sanitary and phytosanitary areas between the relevant institutions of each Party with a view to facilitating access to the markets of the other Party.
Article 16.5. Cooperation In the Field of Fisheries and Aquaculture
The Parties, recognizing the social and economic importance of fisheries and fishery products, shall work to cooperate in the field of fisheries and aquaculture, by:
a) strengthening research and productive capacities for the development of new products to increase direct human consumption, as well as facilitating the exchange of information and the conservation of natural resources, with a focus on responsible fishing;
b) strengthening public and private institutions related to fisheries and aquaculture development;
c) combating illegal, unreported and unregulated fishing by implementing more efficient and effective surveillance systems;
d) the exchange of experiences and best practices to strengthen the responsible development of artisanal fisheries and small-scale aquaculture and the diversification of their products and activities; and
e) the exchange of knowledge and technical assistance in the field of epidemiological surveillance of specific aquatic animal diseases, animal health and the development of contingency plans.
Article 16.6. Small and Medium-Sized Companies
1. The Parties recognize that SMEs contribute significantly to economic growth, employment and innovation and, therefore, seck to promote information exchange and cooperation to enhance the capacity of small and medium-sized enterprises to take advantage of and benefit from the opportunities created by this Agreement.
2. Each Party shall promote the exchange of information related to this Agreement that is relevant to SMEs, including the establishment and maintenance of a publicly accessible information platform and the exchange of information to share knowledge, experiences and best practices among the Parties.
3. The cooperation will include, among others, activities for:
a) share information and experience in the development of policies and programs to support SMEs;
b) Improve SMEs' access to markets and their participation in global value chains, including the promotion and facilitation of business-to-business partnerships;
c) develop human resources and management skills to increase knowledge of the Chinese and Ecuadorian markets;
d) promoting the use of e-commerce by SMEs;
e) explore opportunities for the exchange of experiences between the Parties' business programs;
f) define technology transfer: programs aimed at transferring technological innovation to SMEs and improving their productivity;
g) design and implement mechanisms to promote alliances and the development of productive linkage processes;
h) encourage partnerships and information exchanges between financial players (credit, banks, guarantee organizations, angel networks and venture capital firms) to support SMEs;
i) supporting new exporting SMEs (sponsorship, exporters' club); and
j) support SME participation in trade fairs, trade missions, and other promotion mechanisms.
Article 16.7. Export Promotion
1. In order to obtain greater benefits from this Agreement, the Parties recognize the importance of supporting existing programs related to export and investment promotion and launching new ones.
2. The cooperation will include, among others, activities for:
a) strengthen export capabilities through training and technical assistance programs;
b) establish and develop mechanisms related to market research, including the exchange of information and access to international databases, among others;
c) create exchange programs for exporters with the objective of providing knowledge of the Chinese or Ecuadorian market,
d) linking national producers with international markets by promoting productive linkages with export activity; and
e) Promote the implementation of research, development, technology and innovation programs to increase the supply of exports and encourage investment.
Article 16.8. Tourist Cooperation
1. In this field, the objective of cooperation will be to strengthen the promotion of the Parties' tourism potential, as well as to facilitate the exchange of information and the conservation of natural and cultural attractions.
2. The Parties shall develop tourism through:
a) strengthening public and private institutions related to tourism development;
b) the promotion of the main tourist destinations of each Party; and
c) language exchange programs for tourism students and professionals.
Article 16.9. Cooperation In Science, Technology and Innovation
1. The Parties recognize the importance of pursuing cooperation in science, technology and innovation, in accordance with their national policies, as a means to develop and promote productivity and trade. Therefore, both Parties agree:
a) Work on the basis of their existing agreements for cooperation in research, science and technology;
b) Encourage, where appropriate, government agencies, research institutions, universities, private enterprises, and other research organizations of the Parties to establish direct agreements to support cooperative activities, programs or projects within the framework of this Agreement, especially those related to trade.
c) focus cooperation activities towards sectors where there are mutual and complementary interests, with special emphasis on information and communication technologies, software development to facilitate trade between the Parties; as well as big data technology, information security, cybersecurity and artificial intelligence.
2. The Parties shall encourage and facilitate, as appropriate, the following activities, including, but not limited to:
a) identify strategies, in consultation with universities and research centers, to promote joint graduate studies and research visits;
b) exchange of technical and scientific personnel for the purpose of training and education in scientific and technical institutes, universities, factories, government agencies and other institutions of each Party;
c) exchange of experts from each Party with a view to providing technical and scientific expertise and specialized services in certain fields of science and technology;
d) exchange and provision of non-confidential scientific and technical data, as well as exchange of scientific samples;