3. A Party applying a provisional or definitive measure or extending a safeguard measure shall provide adequate opportunity for prior consultations with the other Party, inter alia, to review the information provided pursuant to paragraph 2, to exchange views on the bilateral safeguard measure and to reach agreement on compensation pursuant to Article 6.8 (Compensation).
Article 6.8. Compensation
1. The Party applying a safeguard measure for a period longer than 3 years shall, at the request of the Party whose product is subject to a safeguard measure, enter into consultations with a view to providing the other Party with mutually agreed trade liberalization compensation in the form of concessions having trade effects substantially equivalent or equivalent to the value of the additional tariffs expected to result from the measure.
2. Ifthe Parties are unable to reach an agreement on compensation within 45 days of the request under paragraph 1, the exporting Party shall be free to suspend the application of substantially equivalent concessions to the trade of the Party applying the safeguard measure.
3. A Party shall notify the other Party in writing at least 30 days before suspending concessions pursuant to paragraph 2.
4. The obligation to grant compensation under paragraph 1 and the right to suspend substantially equivalent concessions under paragraph 2 shall terminate on the date of termination of the safeguard measure.
Article 6.9. Definitions
For purposes of this Section:
competent authority means:
(a) in the case of China, the Ministry of Commerce or its successor; and
(b) in the case of Ecuador, the Direccion de Defensa Comercial del Ministerio de la Producción, Comercio Exterior, Inversiones y Pesca, or its successor;
domestic industry means, with respect to an imported product, the producers as a whole of the like or directly competitive product or those producers whose collective output of the like or directly competitive product constitutes a major proportion of the total domestic production of that product;
Agreement on Safeguards means the Agreement on Safeguards, which is part of the WTO Agreement;
safeguard measure means a safeguard measure described in paragraph 2 of Article 6.3 (imposition of a Bilateral Safeguard Measure);
serious injury means a significant overall impairment of the position of a domestic industry;
threat of serious harm means serious harm that, based on facts and not merely on allegation, conjecture or remote possibility, is clearly imminent; and
transition period: means the eight-year period beginning on the date of entry into force of this Agreement, except in the case of a product for which the liberalization process lasts five or more years, in which case the transition period shall be equal to the period in which such product achieves zero duty in accordance with the Schedule to Annex 2 (Schedule of Tariff Commitments) to this Agreement plus a period of five years.
Section III. Cooperation
Article 6.10. Cooperation
The Parties shall establish a mechanism for cooperation between the investigating authorities of each Party to ensure that each Party has a clear understanding of the practices adopted by the other Party in trade defense investigations.
Chapter 7. Sanitary and Phytosanitary Measures
Article 7.1. Objectives
The objectives of this chapter are:
(a) promote and facilitate trade in animals, animal products, plants and plant products between the Parties, while protecting public, animal and plant health;
(b) improve the implementation of the SPS Agreement between the Parties;
(c) provide a forum to address bilateral SPS measures, resolve trade issues arising from them and expand trade opportunities;
(d) provide communication and cooperation mechanisms to resolve sanitary and phytosanitary issues in an agile and timely manner; and
(e) ensure that the procedures for the establishment of sanitary and phytosanitary measures between the Parties are transparent and applied without undue delay.
Article 7.2. Scope and Definitions
1. This Chapter shall apply to all SPS measures of a Party that may, directly or indirectly, affect trade between the Parties.
2. For the purposes of this Chapter, the definitions in Annex A of the SPS Agreement shall apply.
Article 7.3. Affirmation
Except as otherwise provided in this Chapter, the SPS Agreement shall apply between the Parties and is incorporated into and made a part of this Agreement, mutatis mutandis.
Article 7.4. Risk Analysis
1. The Parties recognize that risk analysis is an important tool to ensure that SPS measures are science-based. The Parties shall ensure that their SPS measures are based on an assessment of the risks to human, animal or plant life or health as set out in Article 5 of the SPS Agreement, taking into account the risk assessment techniques developed by the relevant international organizations.
2. The importing Party shall give priority consideration to requests for market access from the exporting Party, conducting the risk analysis as soon as possible in a manner consistent with the domestic legislation of the importing Party. To this end, the competent authorities of the Parties shall maintain close communication and good working relations at each stage of the risk analysis process in order to facilitate the process and avoid undue delay. The exporting Party shall provide the necessary information required by the importing Party for the risk assessment.
3. At the end of the risk analysis process, the evidence supporting the risk analysis, remaining uncertainties and risk management proposals shall be communicated to the exporting Party.
4. If the exporting Party submits multiple market access requests to the importing Party, the exporting Party shall identify its priority among these requests, and this shall be taken into account by the importing Party.
5. Ifa protocol of sanitary and/or phytosanitary requirements is necessary, based on risk analysis, the competent authorities of the Parties shall enter into negotiations as soon as possible, with the objective of adopting the protocol. The establishment, review and amendment of the protocol by the competent authorities shall be in accordance with the provisions of this Chapter and the SPS Agreement. In this regard, the protocol shall be scientifically justified and shall not constitute a disguised restriction on trade.
Article 7.5. Regionalization
1. The Parties shall accept the principle of regionalization provided for in the SPS Agreement.
2. The Parties take note of the Guidelines to Promote the Practical Implementation of Article 6 of the Agreement on the Application of Sanitary and Phytosanitary Measures (G/SPS/48) adopted by the WTO Committee on Sanitary and Phytosanitary Measures and the relevant standards developed by the World Organization for Animal Health (OIE) and the International Plant Protection Convention (IPPC).
Article 7.6. Harmonization
In accordance with Article 3 of the SPS Agreement and the Decisions for the implementation of that Article adopted by the WTO SPS Committee, the Parties shall work towards the harmonization of their respective sanitary and phytosanitary measures, taking into account the standards, guidelines and recommendations developed by relevant international organizations.
Article 7.7. Equivalence
1. A Party shall accept the sanitary or phytosanitary measures of the other Party as equivalent, if the other Party objectively demonstrates to the Party that its measures achieve the Party's appropriate level of sanitary and phytosanitary protection.
2. For the recognition of equivalence, the Parties should take into account the international standards, guidelines and recommendations developed by the competent international organizations and the decisions adopted by the SPS Committee of the WTO, when relevant to the particular case.
Article 7.8. Control, Inspection and Approval Procedures
Control, inspection and approval procedures shall be carried out in accordance with the provisions of Article 8 and Annex C of the SPS Agreement.
Article 7.9. Transparency
1. The Parties agree to the full implementation of Article 7 of the SPS Agreement in accordance with the provisions of Annex B of the SPS Agreement.
2. Parties will endeavor to exchange information on, inter alia, sanitary and phytosanitary measures, pest status and cases of non-compliance. The English version of the full text of adopted SPS measures should be provided when available.
3. The Partiesâ sanitary and phytosanitary notification points established under the SPS Agreement will establish a bilateral mechanism for increased communication and transparency. The Parties will provide, upon request, a copy of the full text of the notified proposed regulation and allow at least 60 days for comments.
4. The Parties shall communicate, at the request of a Party, the status of the procedure for the authorization of the importation of specific products.
Article 7.10. Technical Cooperation
The Parties agree to strengthen bilateral technical cooperation on sanitary and phytosanitary issues, with a view to improving mutual understanding of the Parties' regulatory systems and facilitating access to each other's markets.
Article 7.11. Committee on Sanitary and Phytosanitary Measures
1. The Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as the "SPS Committee") is hereby established within the framework of the Free Trade Commission.
2. The functions of the SPS Committee are:
(a) monitor the implementation of this Chapter;
(b) coordinate technical cooperation activities;
(c) facilitate technical consultations;
(d) identifying areas for further cooperation, including favorable consideration of any specific proposal made by any of the Parties;
(e) establish a dialogue between the competent authorities in accordance with the objectives of this Chapter;
(f) consult on any matter prior to meetings o f relevant international organizations, if appropriate; and
(g) perform other functions mutually agreed upon by the Parties.
3. The SPS Committee shall meet once a year, unless otherwise agreed by the Parties. Meetings of the SPS Committee may be held by any method agreed upon on a case-by-case basis.
4. The SPS Committee may establish ad-hoc working groups to carry out specific tasks.
Article 7.12. Technical Consultations
1. Where a Party considers that a sanitary or phytosanitary measure is affecting trade with the other Party, it may request that technical consultations be held within the framework of the SPS Committee, with a view to sharing information and increasing mutual understanding on the specific sanitary or phytosanitary measure under consultation and identifying a practical solution that facilitates trade. The other Party shall respond as soon as possible to any request for technical consultations.
2. Technical consultations shall be held within 30 working days after the date of receipt of the request, unless otherwise agreed by the Parties, and may be held by teleconference, videoconference or by any other means mutually agreed by the Parties.
Article 7.13. Points of Contact and Competent Authorities
1. Each Party shall establish a point of contact who shall be responsible for coordinating the implementation of this Chapter. The points of contact shall be:
(a) for China, the International Cooperation Department of the General Administration of Customs; and
(b) for Ecuador, the Ministry of Production, Foreign Trade, Investment and Fisheries.
2. For the purposes of this Chapter, the competent authorities for Sanitary and Phytosanitary Measures are:
For China: The General Customs Administration, or its successor. For Ecuador:
a) The Agency for Phytosanitary and Zoosanitary Regulation and Control (AGROCALIDAD), or its successor;
b) The National Agency for Regulation, Control and Sanitary Surveillance (ARCSA), or its successor; and
c) The Ministry of Production, Foreign Trade, Investment and Fisheries (MPCEIP), or its successor through the Undersecretariat of Quality and Safety.
Chapter 8. Technical Barriers to Trade
Article 8.1. Objectives
The objectives of this Chapter are to increase and facilitate trade, and to fulfill the objectives of this Agreement, by improving the implementation of the TBT Agreement, climinating unnecessary technical barriers to trade, and improving bilateral cooperation.
Article 8.2. Scope and Coverage
1. This Chapter applies to all technical regulations, national standards and conformity assessment procedures that may, directly or indirectly, affect trade in goods, except as provided in paragraph 2.
2. This Chapter does not apply to sanitary and phytosanitary measures covered by Chapter 7 (Sanitary and Phytosanitary Measures) of this Agreement.
Article 8.3. Affirmation of the Agreement on Technical Barriers to Trade
The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement.
Article 8.4. Rules
1. Each Party shall encourage the standardizing body or bodies in its territory to cooperate with the standardizing body or bodies of the other Party. Such cooperation shall include, but not be limited to, information and experience in standards.
2. Parties shall use international standards, or relevant parts of international standards, as a basis for their technical regulations and related conformity assessment procedures where relevant international standards exist or their final formulation is imminent, except where such international standards or relevant parts would be an ineffective or inappropriate means for the achievement of legitimate objectives.
3. In determining whether an international standard within the meaning of Article 2.4 of the TBT Agreement exists, the Parties shall apply the principles set out in the "Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations under Articles 2 and 5 and Annex 3 of the Agreement", adopted by the WTO Committee on Technical Barriers to Trade since 1 January 1995, G/TBT/1/Rev.14, 24 September 2019, Annex 2 to Part 1. Such international standards may include, among others, those developed by the International Organization for Standardization (ISO), the International [Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and the Codex Alimentarius Commission (CAC).
Article 8.5. Equivalence of Technical Regulations
1. Each Party shall favorably consider the possibility of accepting as equivalent technical regulations of the other Party, even if they differ from its own, provided that it is convinced that such regulations adequately fulfill the objectives of its own regulations.
2. A Party shall, at the request of the other Party, explain the reasons why it has not accepted a technical regulation of that Party as equivalent.
3. At the request of a Party that has an interest in developing a similar technical regulation, the Parties may establish relevant communications to provide, to the extent possible, information or other documents, except for confidential information, on which that Party has based the development of a technical regulation.
Article 8.6. Conformity Assessment
1. The Parties recognize that a wide range of mechanisms exist to facilitate the acceptance of conformity assessment procedures and the results thereof, including:
(a) voluntary agreements between conformity assessment bodies in the territory of each Party;
(b) agreements on the mutual acceptance of the results of conformity assessment procedures with respect to specific regulations carried out by bodies located in the territory of the other Party;
(c) recognition by a Party of the results of conformity assessments carried out in the territory of the other Party;
(d) accreditation procedures for qualifying conformity assessment bodies and promoting the recognition of accreditation and certification bodies under international mutual recognition agreements; and
(e) governmental designation of conformity assessment bodies.
2. The Parties shall intensify their exchange of information on the range of mechanisms that facilitate the acceptance of conformity assessment results.
3. Before accepting the results of a conformity assessment procedure, and to increase confidence in the continued mutual reliability of the conformity assessment results, the Parties may consult, as appropriate, on aspects such as the technical competence of the conformity assessment bodies involved.
4. A Party shall, at the request of the other Party, explain its reasons for not accepting the results of a conformity assessment procedure carried out in the territory of the other Party.
5. Where a Party refuses a request by the other Party to enter into or conclude negotiations to reach an agreement to facilitate the recognition in its territory of the results of conformity assessment procedures carried out by bodies in the territory of the other Party, it shall, upon request, explain its reasons.
Article 8.7. Border Measures
When a Party detains, at a port of entry, goods exported from the other Party because of a perceived failure to comply with a technical regulation or conformity assessment procedure, it shall promptly notify the importer or his representative of the reasons for the detention.
Article 8.8. Transparency
1. Each Party shall allow a period of at least 60 days from the notification of its proposed technical regulations and conformity assessment procedures to the WTO to request comments from the other Party, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise.
2. Each Party shall, upon request of the other Party, provide information on the objectives and reasonableness of a technical regulation or conformity assessment procedure that the Party has adopted or proposes to adopt.
3. Each Party shall ensure that all adopted technical regulations and conformity assessment procedures are promptly published or otherwise made available.
4. Each Party shall provide and keep updated information on the competent authorities and communicate any significant changes in their structure, organization and division.
5. The period between publication and entry into force of technical regulations and conformity assessment procedures shall not be less than 6 months, unless it is not feasible to achieve the legitimate objectives of the technical regulations and conformity assessment procedures within that period.
Article 8.9. Technical Cooperation
1. Each Party, at the request of the other Party, shall:
(a) provide that Party with technical assistance, information and assistance on mutually agreed terms and conditions for the purpose of improving that Party's standards, technical regulations and conformity assessment procedures, and related activities, processes and systems;
(b) take measures to prevent and correct risk situations in bilateral trade of products, including encouraging their competent authorities to improve cooperation and sign cooperation agreements if necessary;
(c) exchange information and experiences on port inspection and market surveillance; and
(d) cooperate in capacity building activities aimed at strengthening the national quality infrastructure and other related topics.
2. The Parties shall, at the request of a Party, work to increase the exchange of information, particularly with respect to bilateral non-compliance with technical regulations and conformity assessment procedures.
3. The Parties agree to strengthen cooperation on information exchange, including sharing, where available, the English translated versions of the full texts of adopted technical regulations and conformity assessment procedures.
Article 8.10. Committee on Technical Barriers to Trade
1. The Parties establish the Committee on Technical Barriers to Trade, composed of representatives of each Party.
2. For the purposes of this Article, the Committee shall be coordinated by:
(a) in the case of China, the International Cooperation Department of the State Administration for Market Regulation of China (SAMR), or its successor; and
(b) in the case of Ecuador, the Ministry of Production, Foreign Trade, Investment and Fisheries, through its Directorate of Negotiations on Sanitary and Phytosanitary Measures and Technical Barriers to Trade, or its successor.
3. In order to facilitate communication and ensure the proper functioning of the Committee, the Parties shall designate a contact person within 2 months after the date of entry into force of this Treaty.
4. The functions of the Committee shall include:
(a) monitor the implementation and administration of this Chapter;
(b) address without delay any matter raised by a Party relating to the preparation, adoption, application or enforcement of technical regulations and conformity assessment procedures;
(c) increase cooperation for the development and improvement of technical regulations and conformity assessment procedures;
(d) facilitate, where appropriate, sectoral cooperation between governmental and non-governmental conformity assessment bodies in the territories of the Parties;
(e) exchange information on developments in non-governmental, regional and multilateral fora involved in activities related to standardization, technical regulations and conformity assessment procedures;
(f) take any other action that the Parties consider will assist them in the implementation of the TBT Agreement and the facilitation of trade in goods between them,
(g) consult, at the request of a Party, on any matter arising under this Chapter;
(h) review this Chapter in light of developments under the TBT Agreement, and develop recommendations for amendments to this Chapter in light of those developments; and
(i) report to the Free Trade Commission, as it deems appropriate, on the implementation of this Chapter.
5. Where the Parties have resorted to consultations pursuant to paragraph 4(g), such consultations shall, if the Parties so agree, constitute the consultations provided for in Article 13.4 (Consultations).
6. A Party shall endeavor, upon request, to give favorable consideration to any sector-specific proposal that the other Party makes to deepen cooperation under this Chapter.
7. The Committee shall meet for its first meeting no later than 1 year after the date of entry into force of this Agreement and shall meet once every 2 years or at any time agreed by the Parties. These meetings may be held by teleconference, videoconference or by any other means, as mutually determined by the Parties. If necessary, by mutual agreement, ad-hoc working groups may be established.
Article 8.11. Information Exchange
Any information or explanation that is provided upon request by a Party in accordance with the provisions of this Chapter shall be provided in printed or electronic form within 60 days.
Article 8.12. Definitions
For the purposes of this Chapter:
(a) TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement; and
(b) the definitions in Annex I of the TBT Agreement shall apply.