Article 2.6. Duties, Taxes or other Fees and Charges on Exports
A Party may not adopt or maintain any duties, taxes or other fees and charges imposed on, or in connection with, the export of a good to the other Party, or any internal taxes or fees and charges on a good exported to the other Party, that is in excess of those that would be imposed on those goods when destined for internal sale.
Article 2.7. Standstill
1. Upon the entry into force of this Agreement a Party may not increase a customs duty existing at entry into force, or adopt a new customs duty, on a good originating in the Parties.
2. Notwithstanding paragraph 1, a Party may:
(a) modify a tariff outside this Agreement on a good for which no tariff preference is claimed under this Agreement;
(b) increase a customs duty to the level established in its Schedule in Annex 2-A following a unilateral reduction; or
(c) maintain or increase a customs duty as authorised by this Agreement or any agreement under the WTO Agreement.
3. Notwithstanding paragraphs 1 and 2, only Canada may apply a special safeguard pursuant to Article 5 of the WTO Agreement on Agriculture. A special safeguard may only be applied with respect to goods classified in items with the notation "SSG" in Canada's Schedule included in Annex 2-A. The use of this special safeguard is limited to imports not subject to tariff preference and, in the case of imports subject to a tariff rate quota, to imports over the access commitment.
Article 2.8. Temporary Suspension of Preferential Tariff Treatment
1. A Party may temporarily suspend, in accordance with paragraphs 2 through 5, the preferential tariff treatment under this Agreement with respect to a good exported or produced by a person of the other Party if the Party:
(a) as a result of an investigation based on objective, compelling and verifiable information, makes a finding that the person of the other Party has committed systematic breaches of customs legislation in order to obtain preferential tariff treatment under this Agreement; or
(b) makes a finding that the other Party systematically and unjustifiably refuses to cooperate with respect to the investigation of breaches of customs legislation under Article 6.13.4 (Cooperation), and the Party requesting cooperation, based on objective, compelling and verifiable information, has reasonable grounds to conclude that the person of the other Party has committed systematic breaches of customs legislation in order to obtain preferential tariff treatment under this Agreement.
2. A Party that has made a finding referred to in paragraph 1 shall:
(a) notify the customs authority of the other Party and provide the information and evidence upon which the finding was based;
(b) engage in consultations with the authorities of the other Party with a view to achieving a mutually acceptable resolution that addresses the concerns that resulted in the finding; and
(c) provide written notice to that person of the other Party that includes the information that is the basis of the finding.
3. If the authorities have not achieved a mutually acceptable resolution after 30 days, the Party that has made the finding shall refer the issue to the Joint Customs Cooperation Committee.
4. If the Joint Customs Cooperation Committee has not resolved the issue after 60 days, the Party that has made the finding may temporarily suspend the preferential tariff treatment under this Agreement with respect to that good of that person of the other Party. The temporary suspension does not apply to a good that is already in transit between the Parties on the day that the temporary suspension comes into effect.
5. The Party applying the temporary suspension under paragraph 1 shall only apply it for a period commensurate with the impact on the financial interests of that Party resulting from the situation responsible for the finding made pursuant to paragraph 1, to a maximum of 90 days. If the Party has reasonable grounds based on objective, compelling and verifiable information that the conditions that gave rise to the initial suspension have not changed after the expiry of the 90 day period, that Party may renew the suspension for a further period of no longer than 90 days. The original suspension and any renewed suspensions are subject to periodic consultations within the Joint Customs Cooperation Committee.
Article 2.9. Fees and other Charges
1. In accordance with Article VIII of GATT 1994, a Party shall not adopt or maintain a fee or charge on or in connection with importation or exportation of a good of a Party that is not commensurate with the cost of services rendered or that represents an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. For greater certainty, paragraph 1 does not prevent a Party from imposing a customs duty or a charge set out in paragraphs (a) through (c) of the definition of customs duty under Article 1.1 (Definitions of general application).
Article 2.10. Goods Re-entered after Repair or Alteration
1. For the purposes of this Article, repair or alteration means any processing operation undertaken on goods to remedy operating defects or material damage and entailing the re-establishment of goods to their original function or to ensure their compliance with technical requirements for their use, without which the goods could no longer be used in the normal way for the purposes for which they were intended. Repair or alteration of goods includes restoration and maintenance but does not include an operation or process that:
(a) destroys the essential characteristics of a good or creates a new or commercially different good;
(b) transforms an unfinished good into a finished good; or (c) is used to substantially change the function of a good.
2. Except as provided in footnote 1, a Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration (1) (2).
3. Paragraph 2 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in similar status.
4. A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration (3).
Article 2.11. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994. To this end Article XI of the GATT 1994 is incorporated into and made a part of this Agreement.
2. If a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a third country of a good, that Party may:
(a) limit or prohibit the importation from the territory of the other Party of a good of that third country; or
(b) limit or prohibit the exportation of a good to that third country through the territory of the other Party.
3. Ifa Party adopts or maintains a prohibition or restriction on the importation of a good from a third country, the Parties, at the request of the other Party, shall enter into discussions with a view to avoiding undue interference with or distortion of pricing, marketing or distribution arrangements in the other Party.
4. This Article does not apply to a measure, including that measure's continuation, prompt renewal or amendment, in respect of the following:
(a) the export of logs of all species. If a Party ceases to require export permits for logs destined for a third country, that Party will permanently cease requiring export permits for logs destined for the other Party;
(b) for a period of three years following the entry into force of this Agreement, the export of unprocessed fish pursuant to Newfoundland and Labrador's applicable legislation;
(c) Canadian excise duties on absolute alcohol, as listed under tariff item 2207 10 90 in Canada's Schedule of Concessions annexed to the Marrakesh Protocol (Schedule V), used in manufacturing under the provisions of the Excise Act, 2001, S.C. 2002, c. 22; and
(d) the importation of used vehicles into Canada that do not conform to Canada's safety and environmental requirements.
Article 2.12. Other Provisions Related to Trade In Goods
Each Party shall endeavour to ensure that a good of the other Party that has been imported into and lawfully sold or offered for sale in any place in the territory of the importing Party may also be sold or offered for sale throughout the territory of the importing Party.
Article 2.13. Committee on Trade In Goods
1. The functions of the Committee on Trade in Goods established under Article 26.2.1 (a) (Specialised committees) include:
(a) promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate;
(b) recommending to the CETA Joint Committee a modification of or an addition to any provision of this Agreement related to the Harmonized System; and
(c) promptly addressing issues related to movement of goods through the Partiesâ ports of entry.
2. The Committee on Trade in Goods may present to the CETA Joint Committee draft decisions on the acceleration or elimination of a customs duty on a good.
3. The Committee on Agriculture established under Article 26.2.1 (a) (Specialised committees) shall:
(a) meet within 90 days of a request by a Party;
(b) provide a forum for the Parties to discuss issues related to agricultural goods covered by this Agreement; and (c) refer to the Committee on Trade in Goods any unresolved issue under subparagraph (b).
4. The Parties note the cooperation and exchange of information on agriculture issues under the annual Canada- European Union Agriculture Dialogue, as established in letters exchanged on 14 July 2008. As appropriate, the Agriculture Dialogue may be used for the purpose of paragraph 3.
Chapter THREE. Trade Remedies
Section A. Anti-dumping and Countervailing Measures
Article 3.1. General Provisions Concerning Anti-dumping and Countervailing Measures
1. The Parties reaffirm their rights and obligations under Article VI of GATT 1994, the Anti-dumping Agreement and the SCM Agreement.
2. The Protocol on rules of origin and origin procedures shall not apply to antidumping and countervailing measures.
Article 3.2. Transparency
1. Each Party shall apply anti-dumping and countervailing measures in accordance with the relevant WTO requirements and pursuant to a fair and transparent process.
2. A Party shall ensure, after an imposition of provisional measures and, in any case, before a final determination is made, full and meaningful disclosure of all essential facts under consideration which form the basis for the decision whether to apply final measures. This is without prejudice to Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement.
3. Provided it does not unnecessarily delay the conduct of the investigation, each interested party in an anti-dumping or countervailing investigation (1) shall be granted a full opportunity to defend its interests.
Article 3.3. Consideration of Public Interest and Lesser Duty
1. Each Party's authorities shall consider information provided in accordance with the Party's law as to whether imposing an anti-dumping or countervailing duty would not be in the public interest.
2. After considering the information referred to in paragraph 1, the Partyâs authorities may consider whether the amount of the anti-dumping or countervailing duty to be imposed shall be the full margin of dumping or amount of subsidy or a lesser amount, in accordance with the Party's law.
Section B. Global Safeguard Measures
Article 3.4. General Provisions Concerning Global Safeguard Measures
1. The Parties reaffirm their rights and obligations concerning global safeguard measures under Article XIX of GATT 1994 and the Safeguards Agreement.
2. The Protocol on rules of origin and origin procedures shall not apply to global safeguard measures.
Article 3.5. Transparency
1. At the request of the exporting Party, the Party initiating a safeguard investigation or intending to adopt provisional or definitive global safeguard measures shall immediately provide:
(a) the information referred to in Article 12.2 of the Safeguards Agreement, in the format prescribed by the WTO Committee on Safeguards;
(b) the public version of the complaint filed by the domestic industry, where relevant; and (c) a public report setting forth the findings and reasoned conclusions on all pertinent issues of fact and law considered in the safeguard investigation. The public report shall include an analysis that attributes injury to the factors causing
it and set out the method used in defining the global safeguard measures.
2. When information is provided under this Article, the importing Party shall offer to hold consultations with the exporting Party in order to review the information provided.
Article 3.6. Imposition of Definitive Measures
1. A Party adopting global safeguard measures shall endeavour to impose them in a way that least affects bilateral trade.
2. The importing Party shall offer to hold consultations with the exporting Party in order to review the matter referred to in paragraph 1. The importing Party shall not adopt measures until 30 days have elapsed since the date the offer to hold consultations was made.
Section C. General Provisions
Article 3.7. Exclusion from Dispute Settlement
This Chapter is not subject to Chapter Twenty-Nine (Dispute Settlement).
Chapter FOUR. Technical Barriers to Trade
Article 4.1. Scope and Definitions
1. This Chapter applies to the preparation, adoption, and application of technical regulations, standards, and conformity assessment procedures that may affect trade in goods between the Parties.
2. This Chapter does not apply to:
(a) purchasing specifications prepared by a governmental body for production or consumption requirements of governmental bodies; or
(b) a sanitary or phytosanitary measure as defined in Annex A of the SPS Agreement.
3. Except where this Agreement, including the incorporated provisions of the TBT Agreement pursuant to Article 4.2, defines or gives a meaning to a term, the general terms for standardisation and conformity assessment procedures shall normally have the meaning given to them by the definition adopted within the United Nations system and by international standardising bodies taking into account their context and in the light of the object and purpose of this Chapter.
4. References in this Chapter to technical regulations, standards, and conformity assessment procedures include amendments thereto, and additions to the rules or the product coverage thereof, except amendments and additions of an insignificant nature.
5. Article 1.8.2 (Extent of obligations) does not apply to Articles 3, 4, 7, 8 and 9 of the TBT Agreement, as incorporated into this Agreement.
Article 4.2. Incorporation of the TBT Agreement
1. The following provisions of the TBT Agreement are hereby incorporated into and made part of this Agreement:
(a) Article 2 (Preparation, Adoption and Application of Technical Regulations by Central Government Bodies);
(b) Article 3 (Preparation, Adoption and Application of Technical Regulations by Local Government Bodies and Non- Governmental Bodies);
(c) Article 4 (Preparation, Adoption and Application of Standards);
(d) Article 5 (Procedures for Assessment of Conformity by Central Government Bodies);
(e) Article 6 (Recognition of Conformity Assessment by Central Government Bodies), without limiting a Party's rights or obligations under the Protocol on the Mutual Acceptance of the Results of Conformity Assessment, and the Protocol on the Mutual Recognition of the Compliance and Enforcement Programme Regarding Good Manufacturing Practices for Pharmaceutical Products;
(f) Article 7 (Procedures for Assessment of Conformity by Local Government Bodies);
(g) Article 8 (Procedures for Assessment of Conformity by Non-Governmental Bodies);
(h) Article 9 (International and Regional Systems);
(i) Annex 1 (Terms and their Definitions for the Purpose of this Agreement); and
(j) Annex 3 (Code of Good Practice for the Preparation, Adoption and Application of Standards).
2. The term "Members" in the incorporated provisions shall have the same meaning in this Agreement as it has in the TBT Agreement.
3. With respect to Articles 3, 4, 7, 8 and 9 of the TBT Agreement, Chapter Twenty-Nine (Dispute Settlement) can be invoked in cases where a Party considers that the other Party has not achieved satisfactory results under these Articles and its trade interests are significantly affected. In this respect, such results shall be equivalent to those as if the body in question were a Party.
Article 4.3. Cooperation
The Parties shall strengthen their cooperation in the areas of technical regulations, standards, metrology, conformity assessment procedures, market surveillance or monitoring and enforcement activities in order to facilitate trade between the Parties, as set out in Chapter Twenty-One (Regulatory Cooperation). This may include promoting and encouraging cooperation between the Parties' respective public or private organisations responsible for metrology, standardisation, testing, certification and accreditation, market surveillance or monitoring and enforcement activities; and, in particular, encouraging their accreditation and conformity assessment bodies to participate in cooperation arrangements that promote the acceptance of conformity assessment results.
Article 4.4. Technical Regulations
1. The Parties undertake to cooperate to the extent possible, to ensure that their technical regulations are compatible with one another. To this end, if a Party expresses an interest in developing a technical regulation equivalent or similar in scope to one that exists in or is being prepared by the other Party, that other Party shall, on request, provide to the Party, to the extent practicable, the relevant information, studies and data upon which it has relied in the preparation of its technical regulation, whether adopted or being developed. The Parties recognise that it may be necessary to clarify and agree on the scope of a specific request, and that confidential information may be withheld.
2. A Party that has prepared a technical regulation that it considers to be equivalent to a technical regulation of the other Party having compatible objective and product scope may request that the other Party recognise the technical regulation as equivalent. The Party shall make the request in writing and set out detailed reasons why the technical regulation should be considered equivalent, including reasons with respect to product scope. The Party that does not agree that the technical regulation is equivalent shall provide to the other Party, upon request, the reasons for its decision.
Article 4.5. Conformity Assessment
The Parties shall observe the Protocol on the mutual acceptance of the results of conformity assessment, and the Protocol on the mutual recognition of the compliance and enforcement programme regarding good manufacturing practices for pharmaceutical products.
Article 4.6. Transparency
1. Each Party shall ensure that transparency procedures regarding the development of technical regulations and conformity assessment procedures allow interested persons of the Parties to participate at an early appropriate stage when amendments can still be introduced and comments taken into account, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. Where a consultation process regarding the development of technical regulations or conformity assessment procedures is open to the public, each Party shall permit persons of the other Party to participate on terms no less favourable than those accorded to its own persons.
2. The Parties shall promote closer cooperation between the standardisation bodies located within their respective territories with a view to facilitating, among other things, the exchange of information about their respective activities, as well as the harmonisation of standards based on mutual interest and reciprocity, according to modalities to be agreed by the standardisation bodies concerned.
3. Each Party shall endeavour to allow a period of at least 60 days following its transmission to the WTO Central Registry of Notifications of proposed technical regulations and conformity assessment procedures for the other Party to provide written comments, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. A Party shall give positive consideration to a reasonable request to extend the comment period.
4. If a Party receives comments on its proposed technical regulation or conformity assessment procedure from the other Party, it shall reply in writing to those comments before the technical regulation or conformity assessment procedure is adopted.
5. Each Party shall publish or otherwise make publicly available, in print or electronically, its responses or a summary of its responses, to significant comments it receives, no later than the date it publishes the adopted technical regulation or conformity assessment procedure.
6. Each Party shall, upon request of the other Party, provide information regarding the objectives of, legal basis and rationale for, a technical regulation or conformity assessment procedure, that the Party has adopted or is proposing to adopt.
7. A Party shall give positive consideration to a reasonable request from the other Party, received prior to the end of the comment period following the transmission of a proposed technical regulation, to establish or extend the period of time between the adoption of the technical regulation and the day upon which it is applicable, except where the delay would be ineffective in fulfilling the legitimate objectives pursued.
8. Each Party shall ensure that its adopted technical regulations and conformity assessment procedures are publicly available on official websites.
9. If a Party detains at a port of entry a good imported from the territory of the other Party on the grounds that the good has failed to comply with a technical regulation, it shall, without undue delay, notify the importer of the reasons for the detention of the good.
Article 4.7. Management of the Chapter
1. The Parties shall cooperate on issues covered by this Chapter. The Parties agree that the Committee on Trade in Goods, established under Article 26.2.1(a) shall:
(a) manage the implementation of this Chapter;
(b) promptly address an issue that a Party raises related to the development, adoption or application of standards, technical regulations or conformity assessment procedures;
(c) on a Party's request, facilitate discussion of the assessment of risk or hazard conducted by the other Party;
(d) encourage cooperation between the standardisation bodies and conformity assessment bodies of the Parties;
(e) exchange information on standards, technical regulations, or conformity assessment procedures including those of third parties or international bodies where there is a mutual interest in doing so;
(f) review this Chapter in the light of developments before the WTO Committee on Technical Barriers to Trade or under the TBT Agreement, and, if necessary, develop recommendations to amend this Chapter for consideration by the CETA Joint Committee;
(g) take other steps that the Parties consider will assist them to implement this Chapter and the TBT Agreement and to facilitate trade between the Parties; and
(h) report to the CETA Joint Committee on the implementation of this Chapter, as appropriate.
2. If the Parties are unable to resolve a matter covered under this Chapter through the Committee on Trade in Goods, upon request of a Party, the CETA Joint Committee may establish an ad hoc technical working group to identify solutions to facilitate trade. If a Party does not agree with a request from the other Party to establish a technical working group, it shall, on request, explain the reasons for its decision. The Parties shall lead the technical working group.
3. When a Party has requested information, the other Party shall provide the information, pursuant to the provisions of this Chapter, in print or electronically within a reasonable period of time. The Party shall endeavour to respond to each request for information within 60 days.
Chapter FIVE. Sanitary and Phytosanitary Measures
Article 5.1. Definitions
1. For the purposes of this Chapter, the following definitions apply:
(a) the definitions in Annex A of the SPS Agreement;
(b) the definitions adopted under the auspices of the Codex Alimentarius Commission (the "Codex");
(c) the definitions adopted under the auspices of the World Organisation for Animal Health (the "OIE");
(d) the definitions adopted under the auspices of the International Plant Protection Convention (the "IPPC");
(e) protected zone for a specified regulated harmful organism means an officially defined geographical area in the European Union in which that organism is not established in spite of favourable conditions for its establishment and its presence in other parts of the European Union; and
(f) a competent authority of a Party means an authority listed in Annex 5-A.
2. Further to paragraph 1, the definitions under the SPS Agreement prevail to the extent that there is an inconsistency between the definitions adopted under the auspices of the Codex, the OIE, the IPPC and the definitions under the SPS Agreement.
Article 5.2. Objectives
The objectives of this Chapter are to:
(a) protect human, animal and plant life or health while facilitating trade;