For purposes of determining the customs value of goods traded between the Parties, Article VII of GATT 1994 and Part I of the Customs Valuation Agreement
shall apply and are
hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.11: Quantitative Restrictions and Non-Tariff Measures
1.
Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction other than duties, taxes, or other charges, whether made effective through quotas, import or export licenses, or other measures, on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its rights and obligations under the relevant provisions under the WTO Agreement. To this end,
Article XI of GATT 1994 shall apply and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2.
In this regard, a Party shall not adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations or in accordance with this Agreement.
3.
Each Party shall ensure the transparency of its non-tariff measures permitted under paragraph 2 and shall ensure that any such measures are not
Each Party shall ensure the transparency of its non-tariff measures permitted under paragraph 2 and shall ensure that any such measures are not
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prepared, adopted, or applied with the view to or with the effect of creating unnecessary obstacles to trade between the Parties.
Article 2.12: Import Licensing
1.
With respect to the rights and obligations of the Parties concerning import licensing, the
Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement
shall apply and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2.
Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party of its existing import licensing procedures1, if any. The notification shall:
(a)
include the information specified in Article 5 of the Import Licensing Agreement; and
(b)
be without prejudice as to whether the import licensing procedure is consistent with this Agreement.
3.
Before applying any new or modified import licensing procedure, a Party shall notify the other Party of the new procedure or modification, and to the extent possible, publish in an official
government website at least 20 days before the new procedure or modification takes effect.
Article 2.13: Fees and Formalities
1.
Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994, that all fees and charges of whatever character (other than import or export duties, and other than taxes within the purview of Article III of GATT 1994, and any additional customs duty collected as a result of a measure consistent with Chapter Three (Trade Remedies)) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation on imports or exports for fiscal purposes.
2.
Each Party shall promptly publish details of the fees and charges that it imposes in connection with importation or exportation and shall make such information available on the internet.
1
Existing import licensing procedures being referred to in this paragraph are those which have not yet been notified to the WTO at the date of entry into force of this Agreement.
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3.
Neither Party shall require consular transactions, including related fees and charges, in connection with the importation of a good of the other Party.
Article 2.14: National Treatment on Internal Taxation and Regulation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994.
To this end, Article III of GATT 1994 shall be incorporated into and shall form part of this Agreement, mutatis mutandis.
Article 2.15: Agricultural Safeguard Measures
1.
Notwithstanding Article 2.4, a Party may apply an agricultural safeguard measure only up to the end of that particular year when it was imposed, in the form of a higher import duty on an originating agricultural good listed in that Party?s Schedule to Annex 2-B, consistent with paragraphs 2 through 7 if the aggregate volume of imports of that good in any year exceeds a trigger level as set out in its Schedule to Annex 2-B.
2.
The duty under paragraph 1 shall not exceed the lesser of:
(a)
the prevailing most-favored-nation (MFN) applied rate;
(b)
the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or
(c)
the duty rate set out in the applying Party?s Schedule to Annex 2-B.
3.
The duties each Party applies under paragraph 1 shall be set according to the maximum duty that may be applied each year for each such good in the Party?s Schedule to Annex 2-B.
4.
Neither Party may apply or maintain an agricultural safeguard measure and at the same time apply or maintain, with respect to the same good:
(a)
a bilateral transitional safeguard measure under Chapter Three (Trade Remedies);
(b)
a measure under Article XIX of GATT 1994 and the Safeguards Agreement; or
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(c)
a measure under any agricultural safeguard provisions of the Agreement on Agriculture in Annex 1A to the WTO Agreement.
5.
A Party shall implement any agricultural safeguard measure in a transparent manner. Within 60 days after imposing a measure, the Party applying the measure shall notify the other Party in writing and provide the other Party with relevant data concerning the measure. On the written request of the other Party, a Party shall consult with the other Party within 45 days upon receipt of the written request regarding the application of the measure.
6.
The implementation and operation of this Article may be the subject of discussion and review in the Committee on Trade in Goods under Article 2.20.
7.
Neither Party shall apply or maintain an agricultural safeguard measure on an originating agricultural good if the period specified in the agricultural safeguard provisions of the Party?s Schedule to Annex 2-B has expired.
Article 2.16: Sanitary and Phytosanitary Measures
1.
The Parties affirm their existing rights and obligations with respect to each other under the
Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement.
2.
Neither Party shall have recourse to Chapter Nine (Dispute Settlement) for any matter arising under this Article.
Article 2.17: Technical Barriers to Trade
The Parties affirm their existing rights and obligations with respect to each other under the
Agreement on Technical Barriers to Trade,
in Annex 1A to the WTO Agreement.
Article 2.18: Modification of Concessions
In exceptional circumstances, where a Party faces unforeseen difficulties in implementing its tariff commitments, that Party may, subject to an agreement with the other Party, modify or withdraw a concession contained in its schedule of tariff commitments.
In order to reach such agreement, a Party shall engage in negotiations with the other Party. In such negotiations, the Party proposing to modify or withdraw a concession shall maintain a level of reciprocal and mutually advantageous concessions no less favorable to the other Party than that provided for in this Agreement prior to such negotiations, which may include compensatory adjustments with respect to other goods. The mutually agreed
In order to reach such agreement, a Party shall engage in negotiations with the other Party. In such negotiations, the Party proposing to modify or withdraw a concession shall maintain a level of reciprocal and mutually advantageous concessions no less favorable to the other Party than that provided for in this Agreement prior to such negotiations, which may include compensatory adjustments with respect to other goods. The mutually agreed
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outcome of the negotiations, including any compensatory adjustments,
shall be incorporated into this Agreement in accordance with Article 12.2 (Amendments).
Article 2.19: Contact Points
The Parties shall exchange contact details of focal points for this Chapter in order to facilitate the communication and the exchange of information.
Article 2.20: Committee on Trade in Goods
1.
The Parties hereby establish a Committee on Trade in Goods composed of government representatives of each Party.
2.
The Committee on Trade in Goods may consider any matter arising under this Chapter, including Annex 2-A.
3.
The functions of the Committee on Trade in Goods shall include:
(a)
monitoring the implementation and administration of this Chapter, including utilization of their respective preferences, and undertaking consultations, as appropriate;
(b)
preparing technical amendments, including the transposition of the Tariff Elimination or Reduction Schedules according to the amendments in the HS;
(c)
reviewing and making appropriate recommendations to the Joint Committee on matters arising from the implementation and administration of the Chapter;
(d)
addressing matters related to trade in goods between the Parties, especially those related to quantitative restrictions,
non-tariff measures,
and, if appropriate, referring such matters to the Joint Committee for its consideration; and
(e)
carrying out other functions as may be delegated by the Joint Committee or agreed by the Parties.
4.
The Committee on Trade in Goods shall strengthen their cooperation to facilitate the exchange of information between the competent authorities of the Parties, for purposes of carrying out the functions under paragraph 3.
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5.
The Committee on Trade in Goods shall meet at least once a year or as otherwise agreed. Meetings may be
conducted in person or by any technological means available to the Parties.
6.
The Committee on Trade in Goods shall report to the Joint Committee on the results of its meetings.
Chapter THREE. TRADE REMEDIES
Section A: Safeguard Measures
Article 3.1:
Definitions
For purposes of this Section:
bilateral transitional
safeguard measure
means a measure described in Article 3.2;
domestic industry
means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party, or those whose collective output of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;
serious injury
means a significant overall impairment in the position of a domestic industry;
substantial cause
means a cause that is important and not less than any other cause;
threat of serious injury
means serious injury that, on the basis of facts and not merely on allegation, conjecture, or remote possibility, is clearly imminent; and
transition period
means, in relation to a particular good, the period from the date of entry into force of this Agreement until three years after the date of completion of tariff
reduction or
elimination
in accordance with a Party?s schedule of tariff commitments in Annex 2-A
(Reduction or Elimination of Customs Duties).
Article 3.2: Application of a Bilateral Transitional Safeguard Measure
1.
If, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other Party constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good in the territory of the importing Party, the Party may take a
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bilateral
transitional safeguard measure in the form of: