7. A Party shall provide to the other Party a copy of the public version of the report of its competent investigating authority under Article 7.4.7.
8. If a Party whose good is subject to a bilateral safeguard proceeding under this Chapter, requests within 10 days from receipt of a notification as specified in paragraph 5 to hold consultations, the Party conducting that proceeding shall enter into consultations with a view to finding an appropriate and mutually acceptable solution. If the Parties fail to find a mutually acceptable solution within 30 days of the notification being made, the Party may apply the appropriate provisional or final measures.
Article 7.4. Limitations for Applying a Bilateral Safeguard Measure
1. Bilateral safeguard measures may not be applied in the first year after the entry into force of this Agreement.
2. A bilateral safeguard measure shall not be applied except to the extent and for such time as may be necessary to prevent or remedy serious injury and to facilitate adjustment and, it shall not be applied for a period exceeding two years. However, this period may be extended to up to one additional year if the competent investigating authorities of the importing Party determine, in conformity with the procedures specified in paragraphs 7 and 8, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment, and that there is evidence that the industry is adjusting, provided that the total period of application of a safeguard measure, including the period of initial application and any extension thereof, shall not exceed four years. The Party maintaining the measure beyond a two year period shall progressively liberalize it at annual intervals during the period of application.
3. Neither Party shall apply a bilateral safeguard measure more than once against the same good.
4. For seasonal goods, no measure may be taken more than four times within the initial two years, or for a cumulative period exceeding four years as provided in paragraph 2 above.
5. Upon termination of the bilateral safeguard measure, the rate of duty, or quota if applied as a safeguard measure, shall be at the level which would have been in effect had the measure not been imposed.
6. Bilateral safeguard measures may not be applied or maintained after the end of the transition period. Following the conclusion of the transition period upon request of one of the Parties the Joint Committee shall evaluate whether to continue the bilateral safeguard measures mechanism included in this Chapter.
Investigation Procedures
7. A Party shall apply a safeguard measure only following an investigation by the Party's competent investigating authorities in accordance with the same procedures as those provided for in Articles 3 and 4.2(c) of the Safeguards Agreement. To this end, Articles 3 and 4.2(c) of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis.
8. In the investigation described in paragraph 7, the Party shall comply with the requirements of Articles 4.2(a) and 4.2(b) of the Safeguards Agreement. To this end, Articles 4.2(a) and 4.2(b) of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis.
9. Each Party shall ensure that its competent investigating authorities complete any such investigation within one year of its date of initiation.
Provisional Safeguard Measures
10. In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a safeguard measure on a provisional basis pursuant to a preliminary determination by its competent investigating authorities that there is clear evidence that imports of an originating good from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and that such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry.
11. Before a Party applies a provisional bilateral safeguard measure it shall notify the other Party. This notification shall contain all relevant information, including preliminary evidence of serious injury or threat thereof caused by increased imports, a precise description of the product involved and the proposed measure, as well as the proposed date of introduction and expected duration. A Party shall not apply a provisional measure until at least 45 days after the date on which its competent investigating authorities initiate an investigation, in order to allow interested parties to submit evidence and views regarding the imposition of a provisional measure.
12. The duration of any provisional measure shall not exceed 200 days, during which time the Party shall comply with the requirements of paragraphs 7 and 8.
Compensation
13. No later than 30 days after it applies a bilateral safeguard measure, a Party shall provide an opportunity for the other Party to consult with it regarding appropriate trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. The applying Party shall provide such compensation as the Parties mutually agree.
14. If the Parties are unable to agree on compensation within 30 days after consultations begin, the Party against whose originating good the measure is applied may suspend the application of concessions with respect to originating goods of the applying Party that have trade effects substantially equivalent to the bilateral safeguard measure.
15. The applying Party's obligation to provide compensation under paragraph 13 and the other Party's right to suspend concessions under paragraph 14 shall terminate on the date the bilateral safeguard measure terminates.
16. Any compensation shall be based on the total period of application of the provisional bilateral safeguard measure and of the bilateral safeguard measure.
Article 7.5. Anti-Dumping and Countervailing Measures
1. The Parties agree that anti-dumping and countervailing measures should be used in full compliance with Article VI of GATT 1994, the Anti-Dumping Agreement, and the SCM Agreement.
2. Due regard shall be paid to the requirement for the protection of confidential information, as provided for in Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement.
3. The proceedings shall be based on a fair and transparent system. In furtherance of this, as soon as possible and before the final decision is taken, the Parties shall ensure full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply definitive measures without prejudice to Article 6.5 of the Anti-Dumping Agreement or Article 12.4 of the SCM Agreement, as relevant. Disclosures shall be made in writing and allow interested parties at least 10 days to respond with comments.
Hearings
4. Each Party shall hold a hearing, during which interested parties shall be granted the opportunity to be heard in order to express their views during the anti-dumping or countervailing duty proceedings.
Notifications and Consultations
5. A Party initiating an anti-dumping or countervailing duty investigation shall notify the other Party of such initiation by sending a notification to the other Party promptly after the initiation of the investigation.
6. Prior to the imposition of definitive anti-dumping or countervailing measures, the exporting Party, within 10 days of its receipt of the disclosure as specified in paragraph 7.7.5(3), may request consultations with a view to seeking a mutually acceptable solution to the Parties. If the Parties are unable to reach a mutually acceptable solution within 20 days of the disclosure being sent, the importing Party may apply the appropriate definitive measures.
7. The Party whose goods are subject to anti-dumping or countervailing measures imposed by the other Party has the right to request consultations in order to discuss the impact of these measures on bilateral trade. Consultations shall be held upon the agreement of both Parties.
Article 7.6. Other Provisions
1. The Parties agree, when imposing measures covered by this Chapter, to give priority, to the extent possible, to measures that cause minimal economic injury and do not create serious obstacles to the implementation of this Agreement.
2. Within three years of the entry into force of this Agreement, the Parties shall review all or parts of this Chapter in light of the Parties' practices and developments on trade remedy measures. This review shall take place within the framework of the Trade in Goods Committee.
Chapter 8. TRADE IN SERVICES
Article 8.1. Definitions
For the purposes of this Chapter:
a service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers; aircraft repair and maintenance services means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance;
commercial presence means any type of business or professional establishment including through:
(a) the constitution, acquisition or maintenance of a juridical person, or
(b) the creation or maintenance of a branch or representative office within the territory of a Party for the purpose of supplying a service;
computer reservation system services means services provided by computerised systems that contain information about air carrier's schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;
juridical person means any legal entity duly constituted or otherwise organized under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
juridical person of the other Party means a juridical person which is either:
(a) constituted or otherwise organized under the law of that other Party, and is engaged in substantive business operations in the territory of:
(i) either Party; or
(ii) any Member of the WTO and is owned or controlled by natural persons of that other Party or by juridical persons that meet all the conditions of subparagraph (a)(i); or
(b) in the case of the supply of a service through commercial presence, owned or controlled by:
(i) natural persons of that other Party; or
(ii) juridical persons of that other Party identified under subparagraph (a);
a juridical person is:
(a) "owned" by persons of a Party if more than 50 percent of the equity interest in it is beneficially owned by persons of that Party;
(b) "controlled" by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(c) "affiliated" with another person when it controls, or is controlled by, that other person; or when it and the other person are both controlled by the same person;
measures by a Party affecting trade in services include measures in respect of
(a) the purchase, payment or use of a service;
(b) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally;
(c) the presence, including commercial presence, of persons of a Party for the supply of a service in the territory of the other Party;
monopoly supplier of a service means any person, public or private, which in the relevant market of the territory of a Party is authorized or established formally or in effect by that Party as the sole supplier of that service;
natural person of the other Party means a natural person who resides in the territory of that other Party or any WTO member, and who under the law of that other Party:
(a) is a national of that other Party; or
(b) has the right of permanent residence (12) in that other Party provided that such Party accords substantially the same treatment to its permanent residents as it does to its nationals in respect of measures affecting trade in services.
sector of a service means:
(a) with reference to a specific commitment, one or more, or all, subsectors of that service, as specified in a Party's Schedule;
(b) otherwise, the whole of that service sector, including all of its subsectors;
selling and marketing of air transport services mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions.
services include any service in any sector except services supplied in the exercise of governmental authority;
service consumer means any person that receives or uses a service;
service of the other Party means a service which is supplied:
(a) from or in the territory of the other Party, or in the case of maritime transport, by a vessel registered under the laws of the other Party, or by a person of the other Party which supplies the service through the operation of a vessel and/or its use in whole or in part; or
(b) in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of the other Party;
service supplier means any person of a Party that seeks to supply or supplies a service; (13)
supply of a service includes the production, distribution, marketing, sale and delivery of a service;
trade in services is defined as the supply of a service:
(a) from the territory of a Party into the territory of the other Party;
(b) in the territory of a Party to the service consumer of the other Party;
(c) by a service supplier of a Party, through commercial presence in the territory of the other Party;
(d) by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party;
traffic rights means the right for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Party, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership, and control.
Article 8.2. Scope and Coverage
1. This Chapter applies to measures adopted or maintained by Parties affecting trade in services.
2. This Chapter shall not apply to:
(a) government procurement;
(b) services supplied in the exercise of governmental authority;
(c) subsidies or grants provided by a Party, including government-supported loans, guarantees, and insurance;
(d) measures affecting natural persons of a Party seeking access to the employment market of the other Party, or measures regarding citizenship, residence or employment on a permanent basis; or
(e) measures affecting air traffic rights or measures affecting services directly related to the exercise of air traffic rights, other than measures affecting:
(i) aircraft repair and maintenance services;
(ii) the selling and marketing of air transport services; or
(iii) computer reservation system services.
3. Nothing in this Chapter or its Annexes 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 any Party under the terms of a specific commitment. (14)
4. For the purpose of this Chapter, "measures by Parties" means measures adopted or maintained by:
(a) central, regional, or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities.
In fulfilling its obligations and commitments under this Agreement, each Party shall take such reasonable measures as may be available to it to ensure their observance by regional and local governments and authorities and non-governmental bodies within its territory.
5. The rights and obligations of the Parties in respect of Financial Services shall be governed by the Annex on Financial Services of the General Agreement on Trade in Services (GATS), which is hereby incorporated into and made part of this Agreement.
Article 8.3. Schedules of Specific Commitments
1. Each Party shall set out in its schedule the specific commitments it undertakes in accordance with, Articles 8.5, 8.6, and 8.7.
2. With respect to sectors where such commitments are undertaken, each Schedule shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments referred to in Article 8.7; and
(d) where appropriate, the time-frame for implementation of such commitments and the date of entry into force of such commitments.
3. Measures inconsistent with both Articles 8.5 and 8.6 will be inscribed in the column relating to Article 8.5. In this case, the inscription will be considered to provide a condition or qualification to Article 8.6 as well.
4. The Parties' Schedules of Specific Commitments are set forth in Annex 8C (Schedules of Specific Commitments).
Article 8.4. Most-Favoured Nation Treatment
1. Except as provided for in its List of MFN Exemptions contained in Annex 8A (List of MFN Exemptions), a Party shall accord immediately and unconditionally, in respect of all measures affecting the supply of services to services and service suppliers of the other Party, treatment no less favourable than the treatment it accords to like services and service suppliers of any non-party.
2. The obligations of paragraph 1 shall not apply to:
(a) treatment granted under other existing or future agreements concluded by one of the Parties and notified under Article V or V bis of the GATS as well as treatment granted in accordance with Article VII of the GATS or its Annex on Financial Services;
(b) treatment granted by the UAE to services and service suppliers of the GCC Member States under the GCC Economic Agreement and treatment granted by the UAE under the Greater Arab Free Trade Area (GAFTA).
3. The provisions of this Chapter shall not be so construed as to prevent any Party from conferring or according advantages to adjacent countries in order to facilitate exchanges limited to contiguous frontier zones of services that are both locally produced and consumed.
4. If, after the entry into force of this Agreement, a Party enters into an agreement notified under Article V or Article V bis of the GATS, it shall upon request from the other Party afford adequate opportunity to that Party to negotiate the benefits granted therein.
Article 8.5. Market Access
1. With respect to market access through the modes of supply identified in the definition of "trade in services" contained in Article 8.1, each party shall accord services and service suppliers of the other Party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule of Specific Commitments. (15)
2. In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt, either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule of Specific Commitments, are defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on 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; (16)
(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test;
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and
(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.
Article 8.6. National Treatment
1. With respect to the services sectors inscribed in its Schedule of Specific Commitments, and subject to any conditions and qualifications set out therein, each Party shall accord to services and service suppliers of the other Party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers. (17)
2. A Party may meet the requirement in paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.
3. Formally identical or formally different treatment by a Party shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of that Party compared to the like service or service suppliers of the other Party.
Article 8.7. Additional Commitments
The Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles 8.5 and 8.6, including those regarding qualification, standards or licensing matters. Such commitments shall be inscribed in a Party's Schedule of Specific Commitments.
Article 8.8. Modification of Schedules
Upon written request by a Party to the Joint Committee established under Article 17.1 (Establishment of the Joint Committee), the Joint Committee shall consider any modification of a specific commitment, including withdrawals, in the requesting Party's Schedule of Specific Commitments. Discussions regarding such modifications shall be held within three months after the requesting Party makes its request. The Joint Committee shall aim to ensure that a general level of mutually advantageous commitments, no less favourable to trade than that provided for in the Schedule of Specific Commitments prior to such consultations, is maintained.
Article 8.9. Domestic Regulation
1. In sectors where specific commitments are undertaken, each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective, and impartial manner.
2. (a) Each Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier of the other Party, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review.
(b) The provisions of subparagraph (a) shall not be construed to require a Party to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.
3. Where authorisation is required by a party for the supply of a service for which a specific commitment under this Agreement has been made, the competent authorities of that Party shall:
(a) within a reasonable period of time after the submission of an application considered complete under that Party's domestic laws and regulations, inform the applicant of the decision concerning the application;
(b) in the case of an incomplete application, at the request of the applicant to the extent practicable, identify the additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe;
(c) at the request of the applicant, provide without undue delay information concerning the status of the application; and
(d) to the extent possible, if an application is rejected, inform the applicant in writing the reasons for such rejection within a reasonable period of time. An applicant should not be prevented from submitting another application solely on the basis on a previously rejected application.
4. In sectors where specific commitments are undertaken, each Party shall aim to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services.
The Parties shall aim to ensure that such requirements are, inter alia:
(a) based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) not more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing procedures, not in themselves a restriction on the supply of the service.