CACM Agreement on Investment and Trade Services (2002)
Previous page

4. A Party may adopt or maintain a measure under this article that gives priority to services that are essential to its economic programme, provided that the Party does not impose a measure for the purpose of protecting a specific industry or sector unless the measure is consistent with paragraph 2 (c) and with article VIII (3) of the Articles of Agreement of the Fund.

5. Restrictions imposed on transfers:

a) Shall be consistent with article VIII (3) of the Articles of Agreement of the Fund, where they apply to payments for current international transactions;

b) Shall be consistent with article VI of the Articles of Agreement of the Fund and apply only in conjunction with measures on payments for current international transactions under paragraph 2 (a), where they apply to international capital transactions; and

c) May not take the form of surcharges, tariff quotas, licensing or similar measures.

805. Exceptions to Disclosure of Information

Nothing in this Treaty shall be construed as requiring a party to furnish or allow access to information the disclosure of which would impede the enforcement or otherwise be contrary to the Constitution, to the public interest or their laws concerning the protection of the privacy of individuals, the accounts and financial affairs of individual customers of financial institutions.

1. Except as provided in this article nothing in this Agreement shall apply to Taxation Measures.

2. Nothing in this Agreement shall affect the rights and obligations of either party under any tax convention. In the event of incompatibility between any of these treaties and this treaty, they shall prevail to the extent of the inconsistency.

3. The Parties shall endeavour to conclude an agreement for the avoidance of double taxation within a reasonable time after the date of Entry into Force of this Treaty.

4. The parties agree that, together with the conclusion of an agreement for the avoidance of double taxation, exchange of letters setting out the relationship between the double taxation agreement and this Article.

Part IV. Institutional Arrangements

Chapter 9. Administration of the Treaty

901. Administration

The management of this Treaty shall be responsible to the Council.

1. The Parties shall establish the Committee comprising officials referred to in annex 9.02 (1) or persons to whom they designate.

2. The Commission shall have the following functions:

a) Prepare and revise the technical files required for decisions within the framework of the Treaty;

b) Follow up on any decisions taken by the Council;

c) Supervise the work of the Committees;

d) Establishing working groups or standing or ad hoc expert groups and assign functions;

e) Consider any other matter that may affect the operation of this Treaty which is entrusted to it by the Council;

3. The Commission shall meet at any time upon the request of either party or when the Council considers it necessary to bring its reports to the Council.

1. The committees shall be composed of representatives of each party and may authorise the participation of representatives of other institutions.

2. The Committees shall meet at any time upon the request of either party or the Commission and shall make its recommendations in accordance with those instruments of the Central American Economic Integration.

3. The Commission may establish committees, other than those set out in annex 9.03 or subcommittees as may be necessary to meet the various aspects related to this Treaty.

904. Functions of the Committees

The Committee shall have the following functions:

a) To monitor the implementation of the chapters of this treaty within its competence;

b) Seek technical reports to the competent authorities for the purpose of contributing to resolve the matter;

c) Evaluate and recommend to the Commission, to raise the Council proposals for amendments to the provisions of chapters of this treaty within its competence;

d) The Commission to propose the review of measures in force or in a Party deems to be inconsistent with the obligations of this Treaty; and

e) Comply with the other tasks entrusted to it by the Commission and the Council.

Officials of the Commission

For the purposes of article 9.02 Commission officials, are:

a) In the case of Costa Rica, a representative of the Ministry of Foreign Trade or its successor;

b) In the case of El Salvador, a representative of the Ministry of Economy, or its successor;

c) In the case of Guatemala, a representative of the Ministry of Economy, or its successor;

d) In the case of Honduras, a representative of the Ministry of Industry

And trade, or its successor; and

e) In the case of Nicaragua, a representative of the Ministry of Development, Industry and Trade, or its successor.

Committee on cross-border investment and services (article 4.09).

Financial Services Committee (article 6.11).

Chapter 10. Transparency

1001. Definitions

For purposes of this chapter, "Administrative Ruling of general application,"

Administrative ruling or interpretation that applies to all persons and that fact situations

Generally fall within its scope, and that establishes a standard of conduct, but does not include:

a) Orders or judgements in administrative procedures applicable to a person, in particular goods or service of another Party in a specific case; or

b) A decision to deal with respect to a particular act or practice.

1002. Information Centre

1. Each Party shall designate a branch or office as an information centre to facilitate communication between the parties on any matter covered by this Treaty.

2. When a party so requests, the Information Centre of the other party shall indicate the office or official

Responsible for the matter and provide the required support to facilitate communication with the requesting party.

1003. Publication

1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application relating to any matter covered by this Agreement are promptly published or otherwise made available to the parties and to any interested person.

2. To the extent possible, each Party shall:

a) It shall publish in advance any such measure that it proposes to adopt; and

b) Provide interested persons and the other party a reasonable opportunity to comment on the measure (s) (S) proposal (s).

1004. Provision of Information

1. Each Party shall notify the other party to the extent possible, any existing or proposed measure considers that it might affect or substantially affect the interests of the other party under the terms of this Treaty.

2. Each Party, at the request of the other Party shall provide information and respond promptly to questions

Relating to any existing or proposed measure.

3. Notification and provision of information referred to in this article shall be without prejudice to whether the measure is consistent with this Treaty.

1005. Guarantees of Audience, Legality and Due Process

1. The parties reaffirm the hearing of the rule of law and due process embodied in their respective laws within the meaning of articles 10.06 10.07 hours; and

2. Each Party shall ensure that its judicial and administrative procedures concerning the implementation of any measure referred to in article 10.03 (1), that affects the provisions of this Treaty, conform to the essential elements of procedure, and is based substantiating the legal cause.

1006. Administrative Procedures for the Adoption of Measures of General Application

With a view to administering in a manner consistent and impartial manner and all reasonable measures of implementation

General affecting aspects covered in this Treaty, each Party shall ensure that in its

Administrative procedures in the implementation of the measures referred to in article 10.03 (1)

With respect to persons, in particular goods or services of the other party in specific cases that:

a) Wherever possible, the persons of the other party that are directly affected by a proceeding are in accordance with the internal rules, reasonable notice of the initiation of the same, including a description of the nature, a statement of the legal authority to which it may initiate and a general description of any issues in controversy;

b) When the time, the nature of the proceeding and the public interest, permit such persons a reasonable opportunity to present facts and arguments in support of their claims, prior to any final administrative action; and

c) Its procedures are in accordance with its legislation.

1007. Review and Challenge

1. Each Party shall maintain judicial tribunals or procedures or administrative nature to

The purpose of the prompt review and, where warranted, the correction of final administrative actions regarding matters covered by this Treaty. Such tribunals shall be impartial and shall not be linked with the office or authority entrusted with administrative and enforcement shall not have any substantial interest in the outcome of the matter.

2. Each Party shall ensure that, before such tribunals or procedures the parties have the right to:

a) A reasonable opportunity to defend or support their respective positions; and

b) A decision based on the evidence and arguments presented by the same.

3. Each Party shall ensure that, with respect to the avoidance or subsequent review to which it would apply in accordance with its legislation, these resolutions are implemented by the offices or authorities.

1008. Communications and Notifications

1. For purposes of this Treaty, all notifications or communications addressed to a Party or by a Party shall be made through its national section of the secretariat, report succinctly of this fact to national sections of the other parties.

2. Notwithstanding paragraph 1, in the case of a notification or communication made in accordance with the law applicable to the subject of dispute settlement under this Treaty, a copy thereof shall be sent to the Secretariat of Economic Integration (SIECA), for the purpose of filing.

3. Except as otherwise provided, shall be delivered a communication or notification by one party from the date of its receipt by the national section of the secretariat of that Party.

Chapter 11. Final Provisions

1101. Evaluation of the Treaty

The Parties shall regularly assess the development of this Treaty with a view to seeking their development and consolidate the integration process in the region; promoting the active participation of the productive sectors.

1102. Amendments

1. Without prejudice to articles 9.02 11.04 and any amendment to this Treaty shall require the agreement of all the parties.

2. The agreed amendments shall enter into force after approval according to the appropriate legal procedures of the Parties and constitute an integral part of this Treaty.

1103. Reservations

This Treaty shall not be subject to reservations or unilateral interpretative declarations.

1104. Duration

This Treaty shall have indefinite duration and shall enter into force thirty (30) days after the date of deposit of the instrument of ratification, for the first two (2) depositors, and on the other, eight (8) days after the date of deposit of its instrument.

1105. Denunciation

1. This instrument may be denounced by one of the Parties denounces it shall take effect one hundred and eighty (180) days of its presentation to the SICA without prejudice to that the parties may agree on a different period.

2. The treaty is in force between the parties, other stay attached to it, at least two of them.

1106. Deposit

The SICA shall be the depositary of this Treaty, which shall transmit certified copies to the ministries of each Contracting State, the Ministry of Foreign Trade of Costa Rica and the Secretariat of Economic Integration (SIECA). Furthermore, they shall immediately notify the deposit of each instrument of ratification. Upon the Entry into Force of this Treaty, SICA shall send a certified copy thereof to the General Secretariat of the United Nations organization for the purposes of the registration of marks Article 102 of the Charter of this Organization.

1107. Annexes

The annexes to this Agreement constitute an integral part of it.

1108. Exchange of Reservations

1. The Parties shall agree on their lists of reservations set out in annex I, II, III referred to in articles 3.09 4.06 and of Chapters 3 and 4, and to undertake exchange no later than six (6) months from the date of signing of this Treaty.

2. For the purpose of progress in the implementation of the commitments set out in paragraph 1, the parties shall submit a preliminary list of existing measures dissenting by31 within a period of four (4) months from the date of signing of this Treaty.

3. The lists of reservations shall enter into force for each Party, eight (8) days after the deposit of SICA.

1109. Replacement

The present Treaty replaced in all the parties to the Treaty on investment and trade in services

Between the Republics of El Salvador and Guatemala, signed in Guatemala City, Republic of

Guatemala on 13 January 2000.

Miguel Angel Rodríguez President of the Republic of Costa Rica

Francisco Guillermo Flores Pérez President of the Republic of El Salvador

President Alfonso Portillo Cabrera OF THE REPUBLIC OF GUATEMALA

Ricardo Maduro Joest President of the Republic of Honduras

Enrique Bolaños Geyer President of the Republic of Nicaragua

Previous page Page 7
  • Part   I Initial provisions 1
  • Article   102 Observance of the treaty 1
  • Article   104 Succession of treaties 1
  • Chapter   2 Definitions of general application 1
  • Article   201 Definitions of general application 1
  • Part   II Provisions relating to investment, services and related matters 1
  • Chapter   3 Investment 1
  • Section   A Investment 1
  • Article   301 Definitions 1
  • Article   302 Scope and extent of obligations 1
  • Article   303 Minimum standard of treatment 1
  • Article   304 National treatment 1
  • Article   305 Most favoured nation treatment 1
  • Article   306 Treatment in case of loss 1
  • Article   307 Performance requirements 1
  • Article   308 Senior management and boards of directors 1
  • Article   309 Reservations and exceptions 1
  • Article   310 Transfers 1
  • Article   311 Expropriation and compensation 2
  • Article   312 Special formalities and information requirements 2
  • Article   313 Relationship to other chapters 2
  • Article   314 Denial of benefits 2
  • Article   315 Extraterritorial application of the legislation of a party 2
  • Article   316 Measures related to the environment 2
  • Article   317 Investment promotion and exchange of information 2
  • Article   319 Demand of the investor of a party on its own behalf or on behalf of an enterprise 2
  • Article   320 Dispute resolution through consultations and negotiations 2
  • Article   321 Notification of its intention to submit the claim to arbitration 2
  • Article   322 Submission of a claim to arbitration 2
  • Article   323 Conditions precedent to submission of a claim to arbitration proceedings 2
  • Article   324 Consent to arbitration 2
  • Article   325 Number and method of appointment of arbitrators 2
  • Article   326 Integration of the tribunal in the event that a party fails to appoint an arbitrator or litigant does not reach an agreement on the designation of the chairman of the tribunal 2
  • Article   327 List of arbitrators 2
  • Article   328 Agreement to appointment of arbitrators 2
  • Article   329 Cumulation of procedures 2
  • Article   330 Notifications 2
  • Article   331 A party 2
  • Article   332 The arbitral proceedings 2
  • Article   333 Applicable law 2
  • Article   334 Interpretation of annexes 2
  • Article   335 Expert opinions 2
  • Article   336 Provisional or protective measures 3
  • Article   337 Final award 3
  • Article   338 Definitivity and enforcement of the award 3
  • Article   339 General provisions 3
  • Article   340 Subrogation 3
  • Chapter   4 Cross-border trade in services 3
  • 402 Scope and extent of obligations 3
  • 405 Local presence 3
  • 408 Future liberalization 3
  • 409 Committee on investment and cross-border trade in services 3
  • 410 Proceedings 3
  • 411 Granting licences and permits and authorizations 3
  • 412 Denial of benefits 3
  • 413 Professional services 3
  • 414 Land transportation services 3
  • 415 Technical cooperation 3
  • 416 Relationship with multilateral agreements on services 3
  • Chapter   5 Telecommunications 4
  • 501 Exclusion 4
  • 502 Definitions 4
  • 504 Access to public telecommunications networks and services and its use 4
  • 505 Conditions for the provision of value-added or enhanced services 4
  • 507 Monopolies or anticompetitive practices 4
  • 508 Transparency 4
  • 509 Relationship to other chapters 4
  • 510 Relationship with organizations and international treaties 4
  • Chapter   6 Financial services 4
  • 601 Definitions 5
  • 602 Scope and extent of obligations 5
  • 603 Autoregulados agencies 5
  • 604 Right of establishment 5
  • 605 Cross-border trade 5
  • 606 National treatment 5
  • 607 Most favoured nation treatment 5
  • 608 Recognition and harmonization 5
  • 609 Exceptions 5
  • 610 Transparency 5
  • 611 Financial services committee 5
  • 612 General consultations 5
  • 613 New financial services and data processing 5
  • 614 Senior management and boards of directors 5
  • 615 Reservations 5
  • 616 Future liberalization 5
  • 617 Denial of benefits 5
  • 618 Transfers 5
  • 619 Disputes between an investor and a party 5
  • 620 Disputes between the parties 5
  • Chapter   7 Temporary entry of business persons 6
  • 702 General principles 6
  • 707 Relationship to other chapters 6
  • Section   A Business visitors 6
  • Section   B Traders and investors 6
  • Section   C 6
  • Part   III General exceptions 6
  • Chapter   8 Exceptions 6
  • 801 Definitions 6
  • 802 General exceptions 6
  • 803 Security national 6
  • 805 Exceptions to disclosure of information 7
  • Part   IV Institutional arrangements 7
  • Chapter   9 Administration of the treaty 7
  • 901 Administration 7
  • 904 Functions of the committees 7
  • Chapter   10 Transparency 7
  • 1001 Definitions 7
  • 1002 Information centre 7
  • 1003 Publication 7
  • 1004 Provision of information 7
  • 1005 Guarantees of audience, legality and due process 7
  • 1006 Administrative procedures for the adoption of measures of general application 7
  • 1007 Review and challenge 7
  • 1008 Communications and notifications 7
  • Chapter   11 Final provisions 7
  • 1101 Evaluation of the treaty 7
  • 1102 Amendments 7
  • 1103 Reservations 7
  • 1104 Duration 7
  • 1105 Denunciation 7
  • 1106 Deposit 7
  • 1107 Annexes 7
  • 1108 Exchange of reservations 7
  • 1109 Replacement 7