For purposes of covered procurement, no Party may apply rules of origin that are different from the rules of origin the Party applies at the same time in the normal course of trade.
Article 6.7. Offsets
With regard to covered procurement, a Party shall ensure that its procuring entities, shall not seek, take account of, impose, or enforce any offset.
Article 6.8. Publication of Procurement Information
1. Each Party shall promptly publish any measure of general application regarding covered procurement and any modification to this information, in an officially designated electronic and/or paper medium that is widely disseminated and remains readily accessible to the public.
2. Each Party shall, on request, provide to any other Party an explanation relating to such information.
Article 6.9. Information Technology
1. The Parties shall, to the extent possible, endeavour to use electronic means of communication to permit efficient dissemination of information on government procurement, particularly as regards tender opportunities offered by entities, while respecting the principles of transparency and non-discrimination.
2. When conducting covered procurement by electronic means, a procuring entity shall:
(a) ensure that the procurement is conducted using information technology systems and software, including those related to authentication and encryption of information, that are generally available and interoperable with other generally available information technology systems and software; and
(b) maintain mechanisms that ensure the integrity of requests for participation and tenders, including establishment of the time of receipt and the prevention of inappropriate access.
Article 6.10. Cooperation
1. The Parties recognise the importance of cooperation with a view to achieving a better understanding of their respective government procurement systems, as well as a better access to their respective markets, in particular for small business suppliers.
2. The Parties shall endeavour to cooperate in the area of government procurement by exchanging experience and information about best practices and regulatory frameworks.
3. Technical assistance could be provided upon a duly motivated request.
Article 6.11. General Exceptions
1. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not disclosing any information that it considers necessary for the protection of its essential security interests relating to the procurement of arms, ammunition, or war materials, or to procurement indispensable for national security or for national defence purposes.
2. Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction to trade between the Parties, nothing in this Chapter shall be construed to prevent a Party from adopting or maintaining measures necessary to protect public morals, order or safety, human, animal or plant life or health or intellectual property; or relating to goods or services of persons with disabilities, of philanthropic institutions or of prison labour.
Article 6.12. Modifications and Rectifications to Coverage
1. A Party may modify or rectify its coverage under Annex XIV or Annex XV provided that:
(a) it notifies the other Parties in writing;
(b) it offers at the same time adequate compensatory adjustments to maintain a level of coverage comparable to that existing prior to the modification, except as provided in paragraph 2; and
(c) no Party objects in writing within 45 days following the date of notification. The Parties may agree to extend the deadline pending completion of their internal procedures.
2. A Party need not provide compensatory adjustments when the Parties agree that the proposed modification covers a procuring entity over which a Party has effectively eliminated its control or influence. When a Party objects to the assertion that such government control or influence has been effectively eliminated, the objecting Party may request further information or consultations with a view to clarifying the nature of any government control or influence and reaching agreement on the procuring entity's continued coverage.
3. Amendments pursuant to this Article shall enter into force 45 days following the date of the circulation of the notification or upon expiration of the agreed time for objections to the notification. The Party having requested the modification or rectification shall notify the Depositary of the modification or rectification.
Article 6.13. Further Negotiations
In case a Party offers, in the future, a third party additional advantages with regard to its respective government procurement market access coverage agreed under this Chapter and Annexes XIV and XV it shall agree, upon request of any other Party, to enter into negotiations with a view to extending the coverage on a reciprocal basis.
Chapter 7. Competition
Article 7. Rules of Competition Concerning Undertakings
1. The following practices are incompatible with the proper functioning of this Agreement in so far as they may affect trade between an EFTA State and Ukraine:
(a) agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition in the territory of each Party;
(b) abuse by one or more undertakings of a dominant position in the territory of each Party.
2. The provisions of paragraph 1 shall also apply to the activities of public undertakings, and undertakings to which the Parties grant special or exclusive rights, in so far as the application of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them.
3. Nothing in paragraph 2 shall be construed as preventing a Party from establishing or maintaining a public enterprise, entrusting enterprises with special or exclusive rights or maintaining such rights.
4. The provisions of paragraphs 1 and 2 shall not be construed so as to create any direct obligations for undertakings.
5. The Parties recognize the importance of cooperation and consultations with the aim of putting an end to anti-competitive practices as outlined in paragraphs 1 and 2 or their adverse effects on trade. The Parties may conduct such cooperation and consultations through their competent authorities. Cooperation shall include the exchange of pertinent information that is available to the Parties. No Party shall be required to disclose information that is confidential according to its law.
6. To foster understanding between the Parties, or to address any matter arising under this Chapter, and without prejudice to the autonomy of each Party to develop, maintain and enforce its competition policy and legislation, a Party may request consultations within the Joint Committee. This request shall indicate the reasons for the consultations. Consultations in accordance with Article 9.3 shall be held promptly with a view to reaching a conclusion consistent with the objectives set forth in this Chapter. The Parties concerned shall give to the Joint Committee all the support and information needed.
7. With the exception of the right for consultations in accordance with paragraph 6, no Party may have recourse to dispute settlement under this Agreement for any matter arising under this Article.
Chapter 8. Institutional Provisions
Article 8. The Joint Committee
1. The Parties hereby establish the Ukraine-EFTA Joint Committee. It shall be composed of representatives of the Parties, which shall be headed by Ministers or by senior officials delegated by them for this purpose.
2. The Joint Committee shall:
(a) supervise and review the implementation of this Agreement, inter alia by means of a comprehensive review of the application of the provisions of this Agreement, with due regard to any specific reviews provided for in this Agreement;
(b) keep under review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between Ukraine and the EFTA States;
(c) oversee the further development of this Agreement;
(d) 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
(f) consider any other matter that may affect the operation of this Agreement.
3. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary 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 shall take decisions as provided for in this Agreement, and may make recommendations, by consensus.
5. The Joint Committee shall meet within two years of the entry into force of this Agreement. Thereafter, it shall meet whenever necessary upon mutual agreement but normally every two years. Its meetings shall be chaired jointly by Ukraine and one of the EFTA States. The Joint Committee shall establish its rules of procedure.
6. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise.
7. The Joint Committee may decide to amend the Annexes and Protocols to this Agreement. Such amendment enters into force as set forth in the amending decision taken by the Joint Committee.
Chapter 9. Dispute Settlement
Article 9.1. Scope and Coverage
1. The provisions of this Chapter shall apply with respect to the settlement of any disputes concerning the interpretation or application of this Agreement, except as otherwise provided in this Agreement.
2. Disputes regarding the same matter arising under both this Agreement and the WTO Agreement may be settled in either forum at the discretion of the complaining Party (4). The forum thus selected shall be used to the exclusion of the other.
3. For purposes of paragraph 2, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the WTO Dispute Settlement Understanding, whereas dispute settlement proceedings under this Agreement are deemed to be initiated upon a request for arbitration pursuant to paragraph 1 of Article 9.4.
4. Before a Party initiates dispute settlement proceedings under the WTO Agreement against another Party, that Party shall notify all other Parties of its intention.
Article 9.2. Good Offices, Conciliation or Mediation
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the Parties so agree. They may begin and be terminated at any time. They may continue while procedures of an arbitration panel established in accordance with this Chapter are in progress.
2. Proceedings involving good offices, conciliation and mediation shall be confidential and without prejudice to the Parties' rights in any other proceedings.
Article 9.3. Consultations
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to reach a mutually satisfactory resolution of any matter raised in accordance with this Article.
2. A Party may request in writing consultations with another Party if it considers that a measure or other matter is inconsistent with this Agreement. The Party requesting consultations shall at the same time notify the other Parties in writing thereof. The Party to which the request is made shall reply to the request within 10 days after the date of its receipt. Consultations shall take place in the Joint Committee unless the Parties making and receiving the request for consultations agree otherwise.
3. Consultations shall commence within 30 days from the date of receipt of the request for consultations. Consultations on urgent matters, including those on perishable goods, shall commence within 15 days from the receipt of the request for consultations. If the Party to which the request is made does not reply within 10 days or does not enter into consultations within 30 days from the date of receipt of the request for consultations, or within 15 days for urgent matters, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 9.4.
4. The parties to the dispute shall provide sufficient information to enable a full examination of how the measure or other matter is inconsistent with this Agreement and treat any confidential or proprietary information exchanged in the course of consultations in the same manner as the Party providing the information.
5. The consultations shall be confidential and without prejudice to the rights of the Parties in any further proceedings.
6. The parties to the dispute shall inform the other Parties of any mutually agreed resolution of the matter.
Article 9.4. Establishment of Arbitration Panel
1. If the consultations referred to in Article 9.3 fail to settle a dispute within 60 days, or 30 days in relation to urgent matters, including those on perishable goods, after the date of the receipt of the request for consultations by the Party complained against, it may be referred to an arbitration panel by means of a written request from the complaining Party to the Party complained against. A copy of this request shall be communicated to the other Parties so that they may determine whether to participate in the dispute.
2. The request for arbitration shall identify the specific measure or other matter at issue and provide a brief summary of the legal basis of the complaint.
3. The arbitration panel shall comprise three members who shall be nominated in accordance with the "Optional Rules for Arbitrating Disputes between Two States of the Permanent Court of Arbitration", effective 20 October 1992 (hereinafter referred to as "the Optional Rules"). The date of establishment of the arbitration panel shall be the date on which the Chairperson is appointed.
4. Unless the parties to the dispute otherwise agree within 20 days from the date of receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel shall be:
"To examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 9.4 and to make findings of law and fact together with the reasons therefor, as well as recommendations, if any, for the resolution of the dispute and the implementation of the ruling."
5. Where more than one Party requests the establishment of an arbitration panel relating to the same matter or where the request involves more than one defending Party, and whenever feasible, a single arbitration panel should be established to examine complaints relating to the same matter.
6. A Party which is not a party to the dispute shall be entitled, on delivery of a written notice to the parties to the dispute, to make written submissions to the arbitration panel, receive written submissions, including annexes, from the parties to the dispute, attend hearings and make oral statements.
Article 9.5. Procedures of the Arbitration Panel
1. Unless otherwise specified in this Agreement or agreed between the parties to the dispute, the procedures of the arbitration panel shall be governed by the Optional Rules.
2. The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in the light of the relevant provisions of this Agreement interpreted in accordance with rules of interpretation of public international law.
3. Unless the parties to the dispute agree otherwise, the hearings of the arbitration panel shall take place in Geneva. The language of any proceeding shall be English. The hearings of the arbitration panel shall be open to the public unless the parties to the dispute agree otherwise.
4. There shall be no ex parte communications with the arbitration panel concerning matters under its consideration.
5. A Party's written submissions, written versions of oral statements and responses to questions put by an arbitration panel, shall, at the same time as it is submitted to the arbitration panel, be transmitted by that Party to the other party to the dispute and any other Party that has delivered a notice pursuant to paragraph 6 of Article 9.4.
6. The Parties shall treat as confidential the information submitted by any other Party to the arbitration panel which that Party has designated as confidential.
7. Decisions of the arbitration panel shall be taken by a majority of its members. Any member may furnish separate opinions on matters not unanimously agreed. The arbitration panel may not disclose which members are associated with majority or minority opinions.
Article 9.6. Arbitration Panel Reports
1. The arbitration panel should, as a general rule, submit an initial report containing its findings and ruling to the parties to the dispute not later than 90 days from the date of establishment of the arbitration panel. In no case should it do so later than five months from this date. A party to the dispute may submit written comments to the arbitration panel on its initial report within 14 days of receipt of the report. The arbitration panel shall present to the parties to the dispute a final report within 30 days of their receipt of the initial report.
2. The final report, as well as any ruling under Articles 9.8 and 9.9, shall be communicated to the Parties. The reports shall be made public, unless the parties to the dispute decide otherwise.
3. Any ruling of the arbitration panel under any provision of this Chapter shall be final and binding upon the parties to the dispute.
Article 9.7. Suspension or Termination of Arbitration Panel Proceedings
1. Where the parties to the dispute agree, an arbitration panel may suspend its work at any time for a period not exceeding 12 months. If the work of an arbitration panel has been suspended for more than 12 months, the arbitration panel's authority for considering the dispute shall lapse unless the parties to the dispute agree otherwise.
2. A complaining Party may withdraw its complaint at any time before the final report has been issued. Such withdrawal is without prejudice to its right to introduce a new complaint regarding the same issue at a later point in time.
3. The parties to the dispute may agree at any time to terminate the proceedings of an arbitration panel established under this Agreement by jointly notifying the Chairperson of that arbitration panel.
4. An arbitration panel may, at any stage of the proceedings prior to release of the final report, propose that the parties to the dispute seek to settle the dispute amicably.
Article 9.8. Implementation of Final Report
1. The Party concerned shall promptly comply with the ruling of the arbitration panel. If it is impracticable to comply immediately, the parties to the dispute shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement within 30 days from the date of the issuance of the final report, either party to the dispute may request the original arbitration panel to determine the length of the reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel should be given within 30 days from that request.
2. The party to the dispute concerned shall notify the other party to the dispute of the measure adopted in order to comply with the ruling of the arbitration panel, as well as provide a detailed description of how the measure ensures compliance sufficient to allow the other party to the dispute to assess the measure.
3. In case of disagreement as to the existence of a measure complying with the ruling of the arbitration panel or to the consistency of that measure with the ruling of the arbitration panel, such dispute shall be decided by the same arbitration panel before compensation can be sought or suspension of benefits can be applied in accordance with Article 9.9. The ruling of the arbitration panel shall normally be rendered within 90 days.
Article 9.9. Compensation and Suspension of Benefits
1. If the Party concerned fails to properly comply with the ruling in the final report within a reasonable period of time as provided for in paragraph 1 of Article 9.8, that Party shall, if so requested by the complaining Party, enter into consultations with a view to agreeing on a mutually acceptable compensation. If no such agreement has been reached within 20 days from the request, the complaining Party shall be entitled to suspend the application of benefits granted under this Agreement but only equivalent to those affected by the measure or matter that the arbitration panel has found to be inconsistent with this Agreement.
2. In considering what benefits to suspend, the complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure or matter that the arbitration panel has found to be inconsistent with this Agreement. The complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.
3. The complaining Party shall notify the other party to the dispute of the benefits which it intends to suspend, the grounds for such suspension and when suspension will commence, no later than 30 days before the date on which the suspension is due to take effect. Within 15 days from that notification, the Party complained against may request the original arbitration panel to rule on whether the benefits which the complaining Party intends to suspend are equivalent to those affected by the measure found to be inconsistent with this Agreement, and whether the proposed suspension is in accordance with paragraphs 1 and 2. The ruling of the arbitration panel shall be given within 45 days from that request. Benefits shall not be suspended until the arbitration panel has issued its ruling.
4. Compensation and suspension of benefits shall be temporary measures and shall only be applied by the complaining Party until the measure or matter found to be inconsistent with this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or until the parties to the dispute have resolved the dispute otherwise.
5. At the request of a party to the dispute, the original arbitration panel shall rule on the conformity with the final report of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel shall be given within 30 days from the date of that request.
Article 9.10. Other Provisions
1. Whenever possible, the arbitration panel referred to in Articles 9.8 and 9.9 shall comprise the same panellists who issued the final report. If a member of the original arbitration panel is unavailable, the appointment of a replacement panellist shall be conducted in accordance with the selection procedure for the original panellist.
2. Any time period mentioned in this Chapter may be modified by mutual agreement of the Parties involved.
Chapter 10. Final Provisions
Article 10.1. Fulfilment of Obligations
The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement.
Article 10.2. Annexes, Protocols and Appendices
The Annexes and Protocols to this Agreement, including their Appendices, are an integral part thereof.
Article 10.3. Evolutionary Clause
The Parties shall review this Agreement in the Joint Committee within three years after the entry into force of this Agreement in light of further developments in international economic relations, inter alia in the framework of the WTO and free trade relations with third countries, and examine the possibility of developing and deepening their cooperation under this Agreement. After the first review they shall conduct biennial reviews of this matter in the Joint Committee, with due regard to any specific provisions relating to further liberalisation or review contained in this Agreement.
Article 10.4. Sustainable Development
The Parties shall review this Agreement in the Joint Committee within three years after the entry into force of this Agreement in light of developments in the field of trade and sustainable development.
Article 10.5. Amendments
1. The Parties may agree on any amendment to this Agreement. Amendments to this Agreement other than those referred to in paragraph 7 of Article 8 shall, after consideration by the Joint Committee, be submitted to the Parties for ratification, acceptance or approval.
2. Unless otherwise agreed by the Parties, amendments shall enter into force on the first day of the third month following the deposit of the last instrument of ratification, acceptance or approval.
3. The text of the amendments as well as the instruments of ratification, acceptance or approval shall be deposited with the Depositary.
Article 10.6. Accession
1. Any State, becoming a Member of the EFTA, may accede to this Agreement, provided that the Joint Committee approves its accession, on terms and conditions to be agreed upon by the Parties. The instrument of accession shall be deposited with the Depositary.
2. In relation to an acceding State, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument of accession, or the approval of the terms of accession by the existing Parties, whichever is later.
Article 10.7. Withdrawal and Expiration
1. Each Party may withdraw from this Agreement by means of a written notification to the Depositary. The withdrawal shall take effect six months after the date on which the notification is received by the Depositary.
2. If Ukraine withdraws, this Agreement shall expire when its withdrawal becomes effective.
3. Any EFTA State which withdraws from the Convention establishing the European Free Trade Association shall, ipso facto on the same day as the withdrawal takes effect, cease to be a Party to this Agreement.
Article 10.8. Entry Into Force
1. This Agreement is subject to ratification, acceptance or approval in accordance with the respective domestic legal requirements of the Parties. The instruments of ratification, acceptance or approval shall be deposited with the Depositary.
2. This Agreement shall enter into force on the first day of the third month following the date on which Ukraine and at least one EFTA State have deposited their instruments of ratification, acceptance or approval with the Depositary.
3. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after this Agreement has entered into force, the Agreement shall enter into force on the first day of the third month following the deposit of its instrument of ratification, acceptance or approval.
4. This Agreement shall not enter into force between an EFTA State and Ukraine, unless the complementary Agreement on Agriculture between that EFTA State and Ukraine enters into force simultaneously. It shall remain in force as long as the complimentary agreement remains in force between those Parties.
Article 10.9. Depositary
The Government of Norway shall act as Depositary.
Conclusion
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement. Done at Reykjavik, this 24th day of June 2010, in one original. The Depositary shall transmit certified copies to all the Parties.
For Iceland
For Ukraine
For the Principality of Liechtenstein
For the Kingdom of Norway
For the Swiss Confederation
Attachments
ANNEX XI. REFERRED TO IN ARTICLE 4.11. RESERVATIONS
APPENDIX 1. TO ANNEX XI REFERRED TO IN ARTICLE 4.11 RESERVATIONS BY UKRAINE UKRAINE
Sector: Agriculture
Sub-sector: Land ownership for agricultural purposes
Legal source or authority of the measure: Land Code of Ukraine dated 25.10.2001 № 2768-III.
Succinct description of the measure: Foreign citizens and stateless persons are not entitled:
(i) to acquire ownership of land intended for agricultural purposes;