Article 5.3. Consultations
1. If a Party considers that a given practice contimes to affect trade in the sense of paragraph 1 of Article 5.1 (Rules of Competition), after cooperation or consultations in accordance with Article 5.2 (Cooperation), it may request consultations in the Joint Committee.
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2. The Parties concerned shall provide the Joint Committee with all the support and available information in order to examine the case and, where appropriate, eliminate the practice objected to.
3. The Joint Committee shall, within 60 days from the receipt of the request, examine the information provided in order to facilitate a mutually acceptable solution of the matter.
Article 5.4. Dispute Settlement
No Party may have recourse to Chapter 8 (Dispute Settlement) for any matter arising under this Chapter.
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Chapter 6. TRADE AND SUSTAINABLE DEVELOPMENT
Article 6.1. Context and Objectives
1. The Parties recall the Stockholm Declaration on the Human Environment of 1972, the Rio Declaration on Environment and Development of 1992, Agenda 21 on Environment and Development of 1992, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022, United Nations Economic and Social Council (ECOSOC) ministerial declaration on generating full and productive employment and decent work for all, of 2006, the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022, the ILO Centenary Declaration for the Future of Work of 2019, the Rio+20 Outcome Document âThe Future We Wantâ of 2012 and the UN 2030 Agenda for Sustainable Development of 2015.
2. The Parties shall promote sustainable development which encompasses economic development, social development and environmental protection, all three being interdependent and mutually reinforcing. They underline the benefit of cooperation on trade and investment related aspects of labour and environmental issues as part of a global approach to trade and sustainable development.
3. The Parties commit to promote the development of international trade and investment as well as their preferential economic relationship in a manner that is beneficial to all and that contributes to sustainable development.
Article 6.2. Right to Regulate and Levels of Protection
1. Recognising the right of each Party, subject to the provisions of this Agreement, to establish its own level of environmental and labour protection, and to adopt or modify accordingly its relevant laws, policies and practices, each Party shall seek to ensure that its laws, policies and practices provide for and encourage high levels of environmental and labour protection, consistent with standards, principles and agreements referred to in this Chapter. Each Party shall strive to further improve the level of protection provided for in those laws, policies and practices.
2. When preparing and implementing measures related to the environment or labour conditions that affect trade or investment between them, the Parties shall take account of available scientific, technical and other information, and relevant international standards, guidelines and recommendations.
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Article 6.3.
Upholding Levels of Protection in the Application and Enforcement of Laws, Regulations or Standards
1. No Party shall fail to effectively enforce its environmental and labour laws, regulations or standards in a manner affecting trade or investment between the Parties.
2. No Party shall weaken or reduce the level of environmental or labour protection provided by its laws, regulations or standards with the sole intention to seek a competitive trade advantage of producers or service providers operating in that Party or to otherwise encourage trade or investment.
3. No Party shall waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws, regulations or standards in order to encourage investment from another Party or to seek a competitive trade advantage of producers or service providers operating in that Party.
Article 6.4. International Labour Standards and Agreements
1. The Parties commit to promote the development of international trade and investment in a way that is conducive to full and productive employment and decent work for all.
2. The Parties recall the obligations deriving from membership of the ILO, including the obligations in respect of the fundamental principles and rights at work as reflected in the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022. They commit to respect, promote and realise the principles concerning the fundamental rights, namely:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labour; (c) the effective abolition of child labour;
(d) the elimination of discrimination in respect of employment and occupation; and
(e) a safe and healthy working environment.
3. The Parties recall the obligations deriving from membership of the ILO to effectively implement the ILO Conventions which they have ratified and to make continued and sustained efforts towards ratifying the fundamental ILO Conventions and related protocols, the governance Conventions as well as the other Conventions that are classified as âup to dateâ by the ILO.
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4. The Parties recognise the importance of the strategic objectives of the ILO Decent Work Agenda, as reflected in the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022 (ILO Declaration on Social Justice for a Fair Globalization).
5. The Parties commit to:
(a) develop and enhance measures for social protection and decent working conditions for all, including with regard to social security, occupational safety and health, wages and earnings, working time and other conditions of work;
(b) promote social dialogue and tripartism; and (c) build and maintain a well-functioning labour inspection system.
6. Each Party shall ensure that administrative and judicial proceedings are accessible and available in order to permit effective action to be taken against infringements of labour rights referred to in this Chapter.
7. The Parties affirm, as set out in the ILO Declaration on Social Justice for a Fair Globalization, that the violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage and that labour standards shall not be used for protectionist trade purposes.
Article 6.5. Inclusive Economic Development and Equal Opportunities for All
1. The Parties acknowledge the importance of incorporating a gender perspective in the promotion of inclusive economic development and that gender-responsive policies are key elements to enhance the participation of all in the economy and international trade in order to achieve sustainable economic growth.
2. The Parties reaffirm their commitment to implement in their laws, policies and practices the international agreements pertaining to gender equality or non-discrimination to which they are a party.
Article 6.6.
Multilateral Environmental Agreements and International Environmental Governance
1. The Parties recognise the importance of multilateral environmental agreements and international environmental governance as a response of the international community to global or regional environmental challenges and stress the need to enhance the mutual supportiveness between trade and environment policies.
2. The Parties affirm their adherence to environmental principles reflected in the international instruments referred to in Article 6.1 (Context and Objectives).
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3. The Parties reaffirm their commitment to the effective implementation in their laws, policies and practices of the multilateral environmental agreements to which they
are a party.
Article 6.7. Sustainable Forest Management and Associated Trade
1. The Parties recognise the importance of ensuring conservation and sustainable management of forests and related ecosystems with the objective to reduce greenhouse gas emissions and biodiversity loss resulting from deforestation and forest degradation, including from land use and land-use change for agricultural and mining activities.
2. Pursuant to paragraph 1, the Parties commit to: (a) ensure effective forest law enforcement and governance;
(b) promote trade in products that derive from sustainably managed forests and related ecosystems;
(c) implement measures to combat illegal logging and promote the development and use of timber legality assurance instruments to ensure that only legally sourced timber is traded between the Parties;
(d) promote the effective use of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) with particular tegard to timber species; and
(e) cooperate on issues pertaining to conservation and sustainable management of forests, mangroves and peatlands where relevant through existing bilateral arrangements if applicable and in the relevant multilateral fora in which they participate, in particular through the United Nations collaborative initiative on Reducing Emissions from Deforestation and Forest Degradation (REDD+) as encouraged by the Paris Agreement of 2015 (Paris Agreement).
Article 6.8. Trade and Climate Change
1. The Parties recognise the importance of pursuing the objectives of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement in order to address the urgent threat of climate change and the role of trade and investment in pursuing these objectives.
2. Pursuant to paragraph 1, the Parties commit to:
(a) effectively implement their respective obligations and commitments under the UNFCCC and the Paris Agreement;
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1.
2.
1.
2.
(b)
(c)
promote the contribution of trade and investment to the transition to a low- carbon-economy and to climate-resilient development; and
cooperate bilaterally, regionally and in international fora as appropriate on trade-related climate change issues.
Article 6.9. Trade and Biological Diversity
The Parties recognise the importance of the conservation and sustainable use of biological diversity, and the role of trade in pursuing these objectives.
Pursuant to paragraph 1, the Parties commit to:
)
(b)
(c)
(d)
promote, as applicable, the inclusion of animal and plant species in the appendices to CITES where a species is threatened or may be threatened with extinction;
implement effective measures to combat transnational organised wildlife crime throughout the entire value chain, including with respect to non- parties;
enhance efforts to prevent or control the introduction and spread of invasive alien species, in connection with trade activities; and
cooperate, where applicable, on issues concerning trade and the conservation and sustainable use of biological diversity, including initiatives to reduce demand for illegal wildlife products.
Article 6.10. Trade and Sustainable Management of Fisheries and Aquaculture
The Parties recognise the importance of ensuring the conservation and sustainable management of living marine resources and marine ecosystems and the role of trade in pursuing these objectives.
Pursuant to paragraph 1, the Parties commit to:
)
(b)
(c)
implement comprehensive, effective and transparent policies and measures to combat illegal, unreported and unregulated (IUU) fishing and aim to prevent IUU products from trade flows;
effectively implement in their laws, policies and practices the international agreements to which they are a party;
promote the use of relevant international guidelines, including the FAO Voluntary Guidelines for Catch Documentation Schemes;
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(d) cooperate bilaterally and in relevant international fora in the fight against IUU fishing by, inter alia, facilitating the exchange of information on IUU fishing activities;
(e) the fulfilment of the objectives set out in the 2030 Agenda for Sustainable Development regarding fisheries subsidies, including by prohibiting
certain forms of fisheries subsidies which contribute to overfishing and overcapacity and eliminate subsidies that contribute to IUU fishing; and
® promote the development of sustainable and responsible aquaculture.
Article 6.11.
Trade and Sustainable Agriculture and Food Systems 1. The Parties recognise the importance of sustainable agriculture and food systems and the role of trade in achieving this objective. The Parties reiterate their shared
commitment to achieve the 2030 Agenda for Sustainable Development and its Sustainable Development Goals.
2. Pursuant to paragraph 1, the Parties commit to: (a) promote sustainable agriculture and associated trade; (b) promote sustainable food systems; and (c) cooperate, as appropriate, on issues concerning trade and sustainable agriculture and food systems, including through exchanging information, experience and good practices, conducting a dialogue on their respective
priorities, and reporting on progress made in achieving sustainable agriculture and food systems.
Article 6.12. Promotion of Trade and Investment Favouring Sustainable Development
1. The Parties recognise the important role of trade and investment in promoting sustainable development in all its dimensions.
2. Pursuant to paragraph 1, the Parties undertake to: (a) promote and facilitate foreign investment, trade in and dissemination of goods and services that contribute to sustainable development, including
those subject to ecological, fair or ethical trade schemes;
(b) promote the development and use of sustainability certification schemes that enhance transparency and traceability throughout the supply chain;
(c) address non-tariff barriers to trade in goods and services that contribute to sustainable development;
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(d) promote the contribution of trade and investment towards a resource efficient and circular economy;
(e) promote sustainable procurement practices; and (f) encourage cooperation between enterprises in relation to goods, services
and technologies that contribute to sustainable development.
Article 6.13. Responsible Business Conduct
The Parties commit to promote responsible business conduct, including by encouraging relevant practices such as responsible management of supply chains by businesses. In this regard, the Parties acknowledge the importance of internationally recognised principles and guidelines, such as the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the UN Global Compact and the UN Guiding Principles on Business and Human Rights.
Article 6.14. Cooperation
1. The Parties shall strive to strengthen their cooperation on trade and investment related labour and environmental issues of mutual interest referred to in this Chapter bilaterally as well as in the international fora in which they participate.
2. Each Party may, as appropriate, invite the participation of social partners or other
relevant stakeholders in identifying possible areas of cooperation.
Article 6.
Implementation and Consultations 1. The Parties shall designate the contact points for the purposes of this Chapter.
2. A Party may, through the contact points referred to in paragraph 1, request consultations with another Party regarding any matter arising under this Chapter. The consultations shall take place in the Joint Committee. The parties concemed shall make every attempt to reach a mutually satisfactory resolution of the matter and may seek advice from relevant organisations, bodies or experts.
3. The Parties may have recourse to Articles 8.2 (Good Offices, Conciliation or Mediation) and 8.3 (Consultations) of Chapter 8 (Dispute Settlement).
4. The Parties shall not have recourse to arbitration under Chapter 8 (Dispute Settlement) for matters arising under this Chapter.
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5. The Parties shall provide their stakeholders with the opportunity to share comments and make recommendations regarding the implementation of this Chapter.
Article 6.16. Panel of Experts
1. If the Parties concerned fail to reach a mutually satisfactory resolution of a matter arising under this Chapter through consultations under Article 8.3 (Consultations) of Chapter 8 (Dispute Settlement), a Party concerned may request the establishment of a panel of experts. Articles 8.4 (Establishment of Arbitration Panel) and 8.5 (Procedures of the Arbitration Panel) of Chapter 8 (Dispute Settlement) shall apply mutatis mutandis, except as otherwise provided for in this Article.
2. The panellists shall have relevant expertise, including in international trade law and international labour law or environmental law. They shall be independent, serve in their individual capacities and shall not take instructions from any organisation or government with regard to issues related to the disagreement, or be affiliated with the government of a Party.
3. The panel of experts should seek information or advice from relevant international organisations or bodies. Any information obtained shall be submitted to the Parties concerned for their comments.
4. The panel of experts shall submit an initial report containing its findings and recommendations to the Parties concerned within 90 days from the establishment of the panel of experts. A Party concerned may submit written comments to the panel of experts on its initial report within 14 days from the receipt of the report. After considering any such written comments, the panel of experts may modify the initial report and make any further examination it considers appropriate. The panel of experts shall present to the Parties concerned a final report within 30 days from the receipt of the initial report. The final report shall be made public.
5. The Parties concerned shall discuss appropriate measures to implement the final report of the panel of experts. Such measures shall be communicated to the other Parties within three months from the issuance of the final report and shall be monitored by the Joint Committee.
6. Any time period for the purposes of this Article may be modified by mutual agreement of the Parties concerned.
7. When a panel of experts considers that it cannot comply with a timeframe imposed on it for the purposes of this Article, it shall inform the Parties concerned in writing and provide an estimate of the additional time required. Any additional time should not exceed 30 days.
8. The costs of the panel of experts shall be borne by the Parties concerned in equal shares. Each Party concerned shall bear its own legal and other costs incurred in relation to the panel of experts. The panel of experts may decide that the costs be distributed differently taking into account the particular circumstances of the case.
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9. Where a procedural question arises, the panel of experts may, after consultation with the Parties concerned, adopt an appropriate procedure.
Article 6.17. Review
This Chapter shall be subject to periodic review within the framework of the Joint Committee, taking into account the Partiesâ respective participatory processes and institutions. The Parties shall discuss progress achieved in pursuing the objectives set out in this Chapter and consider relevant international developments in order to identify areas where further action could promote these objectives.
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Chapter 7. INSTITUTIONAL PROVISIONS
Article 7.1. Joint Committee
1. The Parties hereby establish the EFTA-Republic of Kosovo Joint Committee (Joint Committee) comprising representatives of each Party.
2. The Joint Committee shall: (a) supervise and review the implementation of this Agreement;
(b) keep under review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between the Parties;
(c) oversee any further elaboration of this Agreement;
(d) â supervise the work of all sub-committees and working groups established under this Agreement;
(e) endeavour to resolve disputes that may arise regarding the interpretation or application of this Agreement; and
( consider any other matter that may affect the operation of this Agreement.
3. The Joint Committee may decide to set up sub-committees and working groups to assist it in accomplishing its tasks. Except where otherwise provided for in this Agreement, the sub-committees and working groups shall work under a mandate established by the Joint Committee.
4. The Joint Committee may take decisions as provided for in this Agreement. On other matters the Joint Committee may make recommendations.
5. The Joint Committee may: (a) consider and recommend to the Parties amendments to this Agreement; and (b) decide to amend any Annexes or Appendices to this Agreement.
6. The Joint Committee shall take decisions and make recommendations by consensus. The Joint Committee may adopt decisions and make recommendations regarding issues related to only one or several EFTA States on the one side and the Republic of Kosovo on the other side. Consensus shall only involve, and the decision or recommendation shall only apply to, those Parties.
7. If a representative of a Party in the Joint Committee has accepted a decision subject to the fulfilment of domestic legal requirements, the decision shall enter into force
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on the date that the last Party, so required, notifies the Depositary that its internal requirements have been fulfilled, unless otherwise agreed. The Joint Committee may decide that the decision enters into force for those Parties that have notified the Depositary that their internal requirements have been fulfilled, provided that the Republic of Kosovo is one of those Parties.