(a) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(b) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; or
(c) the total number of service operations or the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test.
ARTICLE 11.5
Local Presence
A Party shall not require a service supplier of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border supply of a service.
ARTICLE 11.6
National Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than the treatment it accords, in like situations, to its own services and service suppliers.
2. The treatment to be accorded by Mexico pursuant to paragraph 1 is, with respect to a regional level of government of Mexico, treatment no less favourable than the most favourable treatment accorded, in like situations, by that regional level of government to its own services and service suppliers.
3. The treatment to be accorded by the European Union pursuant to paragraph 1 is, with respect to a government of or in a Member State of the European Union, treatment no less favourable than the most favourable treatment accorded, in like situations, by that government to its services and service suppliers.
ARTICLE 11.7
Most-Favoured-Nation Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than the treatment it accords, in like situations, to services and service suppliers of a third country.
2. Paragraph 1 shall not be construed as obliging a Party to extend to services and service suppliers of the other Party the benefit of any treatment resulting from measures providing for recognition, including of the standards or criteria for the authorisation, licencing or certification of a natural person or enterprise to carry out an economic activity, or of prudential measures.
ARTICLE 11.8
Non-Conforming Measures and Exceptions
1. Articles 11.5 to 11.7 do not apply to:
(a) any existing non-conforming measure of a Party that is maintained by:
(i) the European Union, as set out in its List to Annex I (Reservations for Existing Measures);
(ii) a national government, as set out by that Party in its List to Annex I (Reservations for Existing Measures);
(iii) a regional government, as set out by that Party in its List to Annex I (Reservations for Existing Measures); or
(iv) a local government;
(b) the continuation or prompt renewal of a non-conforming measure referred to in subparagraph (a); or
(c) any amendment to a non-conforming measure referred to in subparagraph (a), to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 11.5 to 11.7.
2. Articles 11.5 to 11.7 do not apply to a measure that a Party adopts or maintains with respect to sectors, subsectors or activities, as set out in its List to Annex II (Reservations for Future Measures).
3. Article 11.4 does not apply to any measure of a Party with respect to committed sectors or subsectors as set out in its Annex III (Specific Commitments and Limitations on Market Access).
4. Within five years after the date of entry into force of this Agreement, Mexico may notify to the European Union a draft Trade Council decision to modify Appendix I-B-2 (List of Mexico. Reservations Applicable at Sub-Central Level) to Annex I (Reservations for Existing Measures) and Appendix III-B-2 (Schedule of Mexico. Limitations Applicable at Sub-Central Level) to Annex III (Specific Commitments and Limitations on Market Access) with any existing non-conforming measures maintained at the sub-federal level of government.
The European Union shall review that draft within a period of three months and consult with Mexico any related issues. After consultation, the Trade Council shall adopt the modifications to the annexes referred to in this paragraph. The modified annexes shall apply as of the date of adoption of the modifications.
ARTICLE 11.9
Denial of Benefits
A Party may deny the benefits of this Chapter to a service supplier of the other Party that is an enterprise of that Party and to services of that service supplier if:
(a) a person of a third country owns or controls the enterprise; and
(b) the denying Party adopts or maintains a measure with respect to that third country or to enterprises or natural persons of that third country, that prohibits transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise.
Chapter 12. TEMPORARY PRESENCE OF NATURAL PERSONS FOR BUSINESS PURPOSES
ARTICLE 12.1
Definitions
For the purposes of this Chapter:
(a) "business person" means, for Mexico, a national of the European Union who enters the territory of Mexico, without the purpose of establishing temporary or permanent residence, to:
(i) commercially trade goods or provide services;
(ii) establish, develop or manage an enterprise;
(iii) conduct business contacts and negotiations for the sale of goods and services, or similar activities;
(iv) provide specialised services for installation, repair, maintenance, supervision or training of workers, previously agreed or considered in a contract of technology transfer, patents and trademarks, for the sale of commercial or industrial equipment or machinery, or any other production process of an enterprise established in the territory of a Party, during the term of the guarantee contract, sale or service;
(v) attend assemblies or sessions of the board of directors of a legally established enterprise in Mexico; or
(vi) promote goods or services, advise clients, receive orders, negotiate contracts and exhibit, participate or attend congresses, fairs, conventions or similar;
(b) "business visitors for purposes of establishment of an enterprise" means natural persons working in a senior position who are responsible for setting up an enterprise, who do not offer or provide services or engage in any economic activity other than required for the purpose of the establishment of that enterprise and do not receive remuneration from a source located within the host Party;
(c) "contractual service suppliers" means natural persons employed by an enterprise of a Party which itself is not an agency for placement and supply of services of personnel and is not acting through such an agency, which is not established in the territory of the other Party and which has concluded a bona fide contract to supply services with a final consumer in the other Party, requiring the presence on a temporary basis of its employees in that Party, in order to fulfil the contract to supply services; 42
(d) "independent professionals" means, for the European Union, natural persons engaged in the supply of a service and established as self-employed in the territory of a Party who are not established in the territory of the other Party and who have concluded a bona fide contract, other than through an agency for placement and supply services of personnel, to supply services with a final consumer in the other Party, requiring their presence on a temporary basis in that Party in order to fulfil the contract to supply services; 43
(e) "intra-corporate transferees" means natural persons who have been employed by an enterprise of a Party or have been partners in an enterprise of a Party, who are temporarily transferred to an enterprise of a Party, including a subsidiary, branch or parent company of that enterprise in the territory of the other Party, 44 and who are:
(i) "managers" or "executives", meaning persons working in a senior position within an enterprise, who primarily direct the management of the enterprise 45 in the other Party and receive general supervision or direction principally from the board of directors or from stockholders of the business or their equivalent, and who at least:
(A) direct the enterprise or a department or subdivision thereof;
(B) supervise and control the work of other supervisory, professional or managerial employees; and
(C) have the personal authority to recruit and dismiss or to recommend recruitment, dismissal or other personnel-related actions;
(ii) "specialists", meaning persons working in an enterprise who possess specialised knowledge essential to the enterprise's areas of activity, techniques or management, assessed taking into account the knowledge specific to the enterprise and whether the person has a high level of qualification; or
(iii) "trainee employees", meaning, for the European Union, persons who have been employed by an enterprise which is not a representative office for at least one year, possess a university degree and are temporarily transferred for career development purposes or to obtain training in business techniques or methods; 46
(f) "investors" means, for Mexico, natural persons of the European Union seeking to enter Mexico for a temporary stay or that are already in Mexico and intending to:
(i) explore different establishment alternatives;
(ii) perform or supervise an establishment;
(iii) represent a foreign enterprise or perform business transactions; or
(iv) develop, administer or provide advice or key technical services to the operation of an enterprise to which the business person or the business person's enterprise has committed, or is in the process of committing, a substantial amount of capital, in a capacity that is supervisory, executive or involves essential skills; and
(g) "short-term business visitors" means natural persons who are seeking entry and temporary stay into the territory of the other Party, who are not engaged in making direct sales to the general public, who do not receive remuneration from a source located within the host Party and who are:
(i) "business sellers", meaning short-term business visitors who are representatives of a supplier of services or goods of a Party for the purposes of negotiating the sale of services or goods, or entering into agreements to sell services or goods for that supplier, are not engaged in the supply of a service in the framework of a contract concluded between an enterprise that has no commercial presence in the territory of the other Party and a consumer in that territory, and are not commission agents;
(ii) "installers and maintainers", meaning, in respect of the entry and temporary stay in the European Union, short-term business visitors possessing specialised knowledge essential to a seller's or lessor's contractual obligations, performing services or training personnel to perform services, pursuant to a warranty or other service contract incidental to the sale or lease of commercial or industrial equipment or machinery, including computer and related services, purchased or leased from an enterprise located outside the territory of the European Union, throughout the duration of the warranty or service contract and, in respect of the entry and temporary stay in Mexico, short-term business visitors that provide specialised services, including after-sale or after-lease services, previously agreed or as referred to in a contract of transfer of technology, patent and trademark, for the sale of machinery and equipment, technical training of personnel or any other production process for an established enterprise in Mexico; or
(iii) "other short-term business visitors", meaning, for Mexico, short-term visitors that attend business administration meetings, conferences or trade fairs and perform management or executive duties in an enterprise or its subsidiaries or affiliates that are established in Mexico.
ARTICLE 12.2
Objectives, Scope and General Provisions
1. This Chapter reflects the Parties' desire of facilitating the entry and temporary stay of natural persons of a Party into the territory of the other Party for business purposes and the need to establish transparent criteria for this purpose.
2. This Chapter applies to measures directly relating to the entry and temporary stay of natural persons of a Party into the territory of the other Party for business purposes that are business visitors for purposes of establishment of an enterprise, intra-corporate transferees, investors, business sellers, contractual service suppliers and independent professionals.
3. This Chapter does not apply to measures affecting natural persons seeking access to the employment market of a Party, nor to measures regarding citizenship or nationality, residence or employment on a permanent basis.
4. Nothing in this Agreement shall prevent a Party from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under this Chapter. The sole fact of requiring a visa for natural persons of a certain country and not for those of others shall not be regarded as nullifying or impairing benefits under this Chapter.
5. Each Party shall apply the measures covered by this Chapter expeditiously in order to avoid delays or undue damages in trade in goods or services, or in establishment activities under this Agreement.
6. The Parties shall endeavour to develop and adopt common criteria and common interpretations for the implementation of this Chapter.
7. Each Party shall allow the entry and temporary stay for business purposes of natural persons of the other Party who comply with the immigration laws and regulations of the former Party applicable to the entry and temporary stay, in accordance with this Chapter, including the provisions of Annexes I (Reservations for Existing Measures), II (Reservations for Future Measures), III, (Specific Commitments and Limitations on Market Access), IV (Business Visitors for Purposes of Establishment of an enterprise, Intra-Corporate Transferees, Investors and Short-Term Business Visitors), V (Contractual Services Suppliers and Independent Professionals) and VI (Reservations for Financial Services).
8. A Party may, in accordance with its laws and regulations and on a non-discriminatory basis, derogate from its commitments on entry and temporary stay set out in its Annexes IV (Business Visitors for Purposes of Establishment of an Enterprise) and V (Contractual Services Suppliers and Independent Professionals) in cases where the entry and temporary stay of a natural person of another Party might adversely affect:
(a) the settlement of a collective labour dispute that is in progress at the place or intended place of employment; or
(b) the employment of any person who is involved in that dispute.
ARTICLE 12.3
Obligations in Other Chapters
1. This Chapter does not impose any obligation on a Party regarding its immigration measures, except as specifically provided herein.
2. Without prejudice to any decision to allow entry and temporary stay to a natural person of the other Party in accordance with this Chapter, including the length of stay permissible pursuant to any such decision:
(a) the obligations of Articles 10.6 (Market Access), 10.7 (National Treatment), 10.9 (Performance Requirements) and 10.10 (Senior Management and Board of Directors), subject to Articles 10.5 (Scope), 10.12 (Non-Conforming Measures and Exceptions), 18.2 (Scope) and 18.12 (Reservations and non-Conforming Measures), to the extent that the measure affects the treatment of natural persons for business purposes present in the territory of the other Party, are hereby incorporated into and made part of this Chapter and apply to measures affecting treatment of natural persons for business purposes present in the territory of the other Party under the categories of business visitors for purposes of establishment of an enterprise, intra‑corporate transferees and, for Mexico, investors, as defined in Article 12.1 of this Chapter; and
(b) the obligations of Articles 11.4 (Market Access), 11.5 (Local Presence) and 11.6 (National Treatment), subject to Articles 11.2.2 (Scope), 11.8 (Non-Conforming Measures and Exceptions), 18.2 (Scope) and 18.12 (Reservations and Non-Conforming Measures), to the extent that the measure affects the treatment of natural persons for business purposes present in the territory of the other Party, are hereby incorporated into and made part of this Chapter and apply to the measures affecting treatment of natural persons for business purposes present in the territory of the other Party under the categories of contractual service suppliers and, for the European Union, independent professionals, for all sectors listed in Annex V (Contractual Services Suppliers and Independent Professionals) and short-term business visitors, in accordance with Annex IV (Business Visitors for Purposes of Establishment of an Enterprise, Intra-Corporate Transferees, Investors and Short-Term Business Visitors).
3. For greater certainty, paragraph 2 applies to the measures affecting the treatment of natural persons present in the territory of the other Party for business purposes and falling within the relevant categories and who are supplying financial services, as defined in Article 18.1 (Definitions). Paragraph 2 does not apply to measures relating to the granting of temporary entry to natural persons of a Party or of a third country.
ARTICLE 12.4
Business Visitors for Purposes of Establishment of an Enterprise, Intra-corporate Transferees and Investors
1. Subject to Article 10.5 (Scope), each Party shall allow the entry and temporary stay in its territory of business visitors for purposes of establishment of an enterprise and intra-corporate transferees of the other Party in accordance with Annex IV (Business Visitors for Purposes of Establishment of an enterprise, Intra-Corporate Transferees, Investors and Short-Term Business Visitors).
2. Subject to Article 10.5 (Scope), Mexico shall allow the entry and temporary stay in its territory of investors in accordance with Annex IV (Business Visitors for Purposes of Establishment of an Enterprise, Intra-Corporate Transferees, Investors and Short-Term Business Visitors).
3. A Party shall not adopt or maintain limitations on the total number of natural persons that are allowed entry and temporary stay in accordance with paragraphs 1 and 2, in a specific sector or sub‑sector, in the form of numerical quotas or the requirement of an economic needs test either on the basis of a regional subdivision or on the basis of its entire territory.
4. The permissible length of stay shall be: 47
(a) for the European Union, up to three years for managers or executives and specialists, up to one year for trainee employees, and up to 90 days within any six-month period for business visitors for purposes of establishment of an enterprise; and
(b) for Mexico, one year which may be extended three times, for one year each time, for intra‑corporate transferees and investors, and up to 180 days for business visitors for purposes of establishment of an enterprise.
5. The Parties shall grant family members of intra-corporate transferees treatment in accordance with Annex 12-A.
ARTICLE 12.5
Short Term Business Visitors
Subject to Article 11.2 (Scope) and Annex IV (Business Visitors for Purposes of Establishment of an Enterprise, Intra‑Corporate Transferees, Investors and Short-Term Business Visitors), a Party shall:
(a) allow the entry and temporary stay of short term business visitors;
(b) not adopt or maintain limitations on the total number of short term business visitors in a specific sector in the form of numerical quotas either on the basis of a regional subdivision or on the basis of its entire territory; and
(c) not adopt or maintain economic needs tests for short term business visitors.
ARTICLE 12.6
Contractual Service Suppliers
1. Each Party shall allow the entry and temporary stay in its territory of contractual service suppliers of the other Party in accordance with Annex V (Contractual Services Suppliers and Independent Professionals).
2. Unless otherwise specified in Annex V (Contractual Services Suppliers and Independent Professionals), a Party shall not adopt or maintain limitations on the total number of contractual service suppliers of the other Party allowed entry and temporary stay, in the form of numerical quotas or the requirement of an economic needs test.
ARTICLE 12.7
Independent Professionals
1. The European Union shall allow the entry and temporary stay in its territory of independent professionals of Mexico in accordance with Annex V (Contractual Services Suppliers and Independent Professionals).
2. Unless otherwise specified in Annex V (Contractual Services Suppliers and Independent Professionals), the European Union shall not adopt or maintain limitations on the total number of independent professionals of Mexico allowed entry and temporary stay, in the form of numerical quotas or the requirement of an economic needs test.
ARTICLE 12.8
Transparency
1. Each Party shall make publicly available information on the requirements and procedures for entry and temporary stay, including relevant forms and documents, and explanatory materials that will enable interested persons of the other Party to become acquainted with applicable requirements and procedures.
2. The information referred to in paragraph 1 shall include, if applicable, information on the following:
(a) categories of visa, permits or any similar type of authorisation regarding entry and temporary stay;
(b) documentation required and conditions to be met;
(c) method of filing an application and options on where to file, such as consular offices or online;
(d) application fees and indicative processing time;
(e) maximum period of stay under each type of authorisation described in subparagraph (a);
(f) conditions for any available extensions or renewal;
(g) rules regarding accompanying dependents;
(h) available review or appeal procedures; and
(i) relevant laws of general application pertaining to the entry and temporary stay of natural persons.
ARTICLE 12.9
Dispute Settlement
A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement) regarding a refusal to grant entry and temporary stay under this Chapter unless the matter involves a pattern of practice.
Chapter 13. DOMESTIC REGULATION
ARTICLE 13.1
Scope
1. This Chapter applies to measures adopted or maintained by a Party relating to licensing and qualification requirements and procedures, as well as technical standards 48 , affecting trade in services or the pursuit of any other economic activity with respect to which a Party has undertaken a commitment pursuant to Articles 10.6 (Market Access), 10.7 (National Treatment), 11.4 (Market Access), 11.6 (National Treatment), subject to any terms, limitations, conditions or qualifications as set out in its schedule pursuant to Articles 10.12 (Non-Conforming Measures and Exceptions) and 11.8 (Non-Conforming Measures and Exceptions).
2. Notwithstanding paragraph 1, Article 13.6 applies to measures adopted or maintained by a Party relating to licensing and qualification requirements and procedures, as well as technical standards, affecting trade in services or the pursuit of any other economic activity.
3. This Chapter does not apply to measures adopted or maintained by a Party covered under Chapter 18 (Financial services).
ARTICLE 13.2
Development of Measures
A Party that adopts or maintains measures relating to licensing requirements and procedures, qualification requirements and procedures, shall:
(a) ensure that those measures are based on objective and transparent criteria; 49
(b) ensure that the competent authority reaches and administers its decisions in an independent manner;
(c) ensure that the procedures do not in themselves unduly prevent the fulfilment of any requirements;
(d) ensure that the procedures are impartial and adequate for applicants to demonstrate whether they meet the requirements, if any; and
(e) not require an applicant, to the extent practicable, to approach more than one competent authority for each application for authorisation. 50
ARTICLE 13.3
Administration of Measures
If authorisation is required for the supply of a service or the pursuit of any other economic activity, the competent authorities of a Party shall:
(a) permit an applicant, to the extent practicable, to submit an application at any time;
(b) allow a reasonable period of time for the submission of an application if specific time periods for applications exist;
(c) schedule examinations at reasonably frequent intervals, if examinations are required, and provide a reasonable period of time for an applicant to request to take the examination;
(d) endeavour to accept applications in electronic format, taking into account their competing priorities and resource constraints;
(e) accept copies of documents authenticated in accordance with the Party's domestic law, in place of original documents, unless they require original documents to protect the integrity of the authorisation process;
(f) ensure that the authorisation fees 51 charged by the competent authorities are reasonable and transparent and do not in themselves restrict the supply of the relevant service or the pursuit of any other economic activity;
(g) provide, to the extent practicable, an indicative timeframe for processing of an application;
(h) ascertain without undue delay, to the extent practicable, the completeness of an application for processing under the law of the Party;
(i) if an application is considered complete for processing under the law of the Party, ensure that the processing of the application is finalised and that the applicant is informed of the decision within a reasonable period of time after the submission of the application, to the extent possible in writing; 52
(j) provide at the request of the applicant and without undue delay information concerning the status of the application;
(k) if an application is considered incomplete for processing under the law of the Party, within a reasonable period of time and to the extent practicable: