2. This Chapter shall apply to any measure falling under the scope of Chapter 1 (National Treatment and Market Access for Goods) of Title IV of this Agreement adversely affecting trade between the Parties.
3. This Chapter shall not apply to measures falling under Chapter 6 (Establishment, Trade in Services and Electronic Commerce), Chapter 7 (Current Payments and Movement of Capital), Chapter 8 (Public Procurement), Chapter 9 (Intellectual Property) and Chapter 13 (Trade and Sustainable Development) of this Agreement. The Trade Committee may, after due consideration, decide that this mechanism should apply to any of these sectors.
Section 1. PROCEDURE UNDER THE MEDIATION MECHANISM
Article 313. Request for Information
1. Before the initiation of the mediation procedure, a Party may request at any time information regarding a measure adversely affecting trade or investment between the Parties. The Party to which such request is made shall provide, within 20 days of the date of receipt of the request, a response containing its comments on the information contained in the request. Wherever possible, the request and the response shall be made in writing.
2. Where the responding Party considers that a response within 20 days is not practicable, it shall inform the requesting Party of the reasons for the delay, together with an estimate of the shortest period within which it will be able to provide its response.
Article 314. Initiation of the Procedure
1. A Party may request, at any time, that the Parties enter into a mediation procedure. Such request shall be addressed to the other Party in writing. The request shall be sufficiently detailed to present clearly the concerns of the requesting Party and shall:
(a) identify the specific measure at issue;
(b) provide a statement of the alleged adverse effects that the requesting Party believes the measure has, or will have, on trade or investment between the Parties; and
(c) explain how the requesting Party considers that those effects are linked to the measure;
2. The Party to which such request is addressed shall give sympathetic consideration to the request and accept or reject it in writing within 10 days of its receipt.
Article 315. Selection of the Mediator
1. Upon launch of the mediation procedure, the Parties shall endeavour to agree on a mediator no later than 15 days after the receipt of the reply to the request.
2. If the Parties cannot agree on the mediator within the established time frame, either Party may request the chair of the Trade Committee, or the chair's delegate, to draw the mediator by lot from the list established under Article 308 of this Agreement. Representatives of both Parties to the dispute shall be invited with due anticipation, to be present when lots are drawn. In any event, the lot shall be carried out with the Party/Parties that are present.
3. The chair of the Trade Committee, or the chair's delegate, shall select the mediator within five working days of the request by either Party as referred to in paragraph 2.
4. Should the list provided for in Article 308 of this Agreement not be established at the time a request is made pursuant to paragraph 2 of this Article, the mediator shall be drawn by lot from the individuals which have been formally proposed by one or both of the Parties.
5. The Parties may agree that the mediator shall be a national of one of the Parties.
6. The mediator shall assist, in an impartial and transparent manner, the Parties in bringing clarity to the measure and its possible trade effects, and in reaching a mutually agreed solution. The code of conduct set out in Annex XX to this Agreement shall apply to mediators as provided for in that code. Rules 3 to 7 (notifications) and 41 to 46 (translation and calculation of time limits) of the Rules of Procedure set out in Annex XIX to this Agreement shall also apply, mutatis mutandis.
Article 316. Rules of the Mediation Procedure
1. Within 10 days of the appointment of the mediator, the Party having invoked the mediation procedure shall present, in writing, a detailed description of the problem to the mediator and to the other Party, in particular of the operation of the measure at issue and its trade effects. Within 20 days of the date of delivery of this submission, the other Party may provide, in writing, its comments to the description of the problem. Either Party may include in its description or comments any information that it deems relevant.
2. The mediator may decide on the most appropriate way of bringing clarity to the measure concerned and its possible trade-related impact. In particular, the mediator may organise meetings between the Parties, consult the Parties jointly or individually, seek the assistance of or consult with relevant experts and stakeholders, and provide any additional support requested by the Parties. However, before seeking the assistance of or consulting with relevant experts and stakeholders, the mediator shall consult with the Parties.
3. The mediator may offer advice and propose a solution for consideration by the Parties which may accept or reject the proposed solution or may agree on a different solution. However, the mediator shall not advise or give comments on the consistency of the measure at issue with this Agreement.
4. The procedure shall take place in the territory of the Party to which the request was addressed or by mutual agreement in any other location or by any other means.
5. The Parties shall endeavour to reach a mutually agreed solution within 60 days of the appointment of the mediator. Pending a final agreement, the Parties may consider possible interim solutions, especially if the measure relates to perishable goods.
6. The solution may be adopted by means of a decision of the Trade Committee. Either Party may make such solution subject to the completion of any necessary internal procedures. Mutually agreed solutions shall be made publicly available. However, the version disclosed to the public may not contain any information that a Party has designated as confidential.
7. The procedure shall be terminated:
(a) by the adoption of a mutually agreed solution by the Parties, on the date of adoption;
(b) by a written declaration of the mediator, after consultation with the Parties, that further efforts at mediation would be to no avail;
(c) by a written declaration of a Party after exploring mutually agreed solutions under the mediation procedure and after having considered any advice and proposed solutions by the mediator; or
(d) at any stage of the procedure by mutual agreement of the Parties.
Section 2. IMPLEMENTATION
Article 317. Implementation of a Mutually Agreed Solution
1. Where the Parties have agreed to a solution, each Party shall take the measures necessary to implement the mutually agreed solution within the agreed timeframe.
2. The implementing Party shall inform the other Party in writing of any steps or measures taken to implement the mutually agreed solution.
3. On request of the Parties, the mediator shall issue to the Parties, in writing, a draft factual report, providing a brief summary of:
(a) the measure at issue in these procedures; (b) the procedures followed; and
(c) any mutually agreed solution reached as the final outcome of these procedures, including possible interim solutions.
The mediator shall provide the Parties 15 days to comment on the draft report. After considering the comments of the Parties submitted within that period, the mediator shall submit, in writing, a final factual report to the Parties within 15 days. The factual report shall not include any interpretation of this Agreement.
Section 3. GENERAL PROVISIONS
Article 318. Relationship to Dispute Settlement
1. The procedure under this mediation mechanism is not intended to serve as a basis for dispute settlement procedures under this Agreement or another agreement.
A Party shall not rely on or introduce as evidence in such dispute settlement procedures, nor shall a panel take into consideration:
(a) positions taken by the other Party in the course of the mediation procedure;
(b) the fact that the other Party has indicated its willingness to accept a solution to the measure subject to mediation; or
(c) advice given or proposals made by the mediator.
2. The mediation mechanism is without prejudice to the Partiesâ rights and obligations under the provisions on Dispute Settlement.
3. Unless the Parties agree otherwise, and without prejudice to Article 316(6) of this Agreement, all steps of the procedure, including any advice or proposed solution, are confidential. However, any Party may disclose to the public that mediation is taking place.
Article 319. Time Limits
Any time limit referred to in this Chapter may be modified by mutual agreement between the Parties involved in these procedures.
Article 320. Costs
1. Each Party shall bear its own expenses derived from the participation in the mediation procedure.
2. The Parties shall share jointly and equally the expenses derived from organisational matters, including the remuneration and expenses of the mediator, any assistant to the mediator and in the event that the Parties are unable to agree on a common language, any costs associated with translation. Remuneration of the mediator shall be in accordance with that foreseen for the Chairperson of an arbitration Panel in paragraph 2 and 8 of Annex XIX to this Agreement.
Article 321. Review
Five years after the date of entry into force of this Agreement, the Parties shall consult each other on the need to modify the mediation mechanism in light of the experience gained and the development of a corresponding mechanism in the WTO.
Title V. ECONOMIC AND SECTOR COOPERATION
Chapter 1. ENERGY COOPERATION, INCLUDING NUCLEAR ISSUES
Article 322.
1. The Parties shall cooperate on energy matters for the enhancement of energy security, competitiveness and sustainability, which is crucial for the promotion of economic growth. The Partiesâ regulatory cooperation shall take into account the need to ensure relevant public service obligations, including measures to inform and protect customers from unfair selling practices, and access to affordable energy for consumers, including for the most vulnerable citizens.
2. Such cooperation shall be guided by the principles of mutual interest, reciprocity, transparency and predictability, consistent with the market economy, the Energy Charter Treaty of 1994 and other multilateral and related bilateral agreements.
Article 323.
Mutual cooperation shall cover, among others, the following areas:
(a) cooperation in the Civil Nuclear sector, focusing on ensuring a high level of nuclear safety, the clean and peaceful use of nuclear energy, covering all civil nuclear energy activities and stages of the fuel cycle, including production of and trade in nuclear materials, safety and security aspects of nuclear energy, and emergency preparedness, as well as health-related and environmental issues and non-proliferation. In this context, cooperation will also include the further development of policies and legal and regulatory frameworks based on International Atomic Energy Agency (IAEA) standards;
(b) promotion of civil scientific research in the fields of nuclear safety and security, including joint research and development activities, and training and mobility of scientists;
(c) implementation of energy strategies and policies and development/elaboration of forecasts and scenarios, as well as improvement of the statistical recording system in the energy sector based on timely exchange of information on energy balances and energy flows, in accordance with international practices, as well as infrastructure developments;
(d) establishing effective mechanisms to address potential energy crisis situations in a spirit of solidarity;
(e) modernisation and enhancement of existing energy infrastructures of common interests, including energy-generating capacities and the integrity, safety and security of the energy networks, and the establishment of new energy infrastructures of common interest in order to diversify energy sources, suppliers, transportation routes and transport methods in an economic and environmentally sound manner;
(f) development of competitive, transparent and non-discriminatory energy markets;
(g) enhancement and strengthening of long-term stability and security of energy trade, transit, exploration, extraction, refining, production, storage, transport, transmission, distribution and marketing, or sale of energy materials and products on a mutually beneficial and non- discriminatory basis, in accordance with international rules, in particular the Energy Charter Treaty of 1994, the WTO Agreement and this Agreement;
(h) progress towards an attractive and stable investment climate by addressing institutional, legal, fiscal and other conditions, and encouraging mutual investments in the energy field on a non- discriminatory basis;
(i) efficient cooperation with the European Bank for Reconstruction and Development (EBRD) and other international financial organisations and instruments to support energy cooperation between the Parties;
(j) promotion of energy efficiency and energy savings, including through the establishment of energy efficiency policies and legal and regulatory frameworks, with the aim of achieving major improvements, including efficient generation, production, transportation, distribution and use of energy, compatible with the functioning of market mechanisms, as well as the efficient utilisation of energy in appliances, lightings and buildings;
(k) development of and support for renewable energies in an economic and environmentally sound manner, as well as alternative fuels, including sustainable biofuel production, and cooperation on regulatory issues, certification and standardisation as well as on technological and commercial development;
(l) promotion of the Joint Implementation Mechanism under the Kyoto Protocol to the UN Framework Convention on Climate Change of 1997 to reduce emissions of greenhouse gases through energy efficiency and renewable energy projects;
(m) scientific and technical cooperation and exchange of information for the development and improvement of technologies in energy production, transportation, supply and end use, paying particular attention to energy- efficient and environmentally friendly technologies, including carbon capture and storage and efficient and clean coal technologies;
(n) cooperation in the framework of European and international standardisation bodies in the field of energy.
Article 324.
The Parties shall exchange information and experience, as well as provide relevant support to the process of regulatory reforms, which include the restructuring of the coal sector (steam coal, coking coal and lignite) in order to increase its competitiveness, enhance mine safety and occupational safety and reduce its environmental impact, while bearing in mind the regional and social impact. In order to enhance efficiency, competitiveness, and sustainability, the restructuring process needs to cover the entire coal value chain, i.e. from exploration via production and processing to conversion and handling of residues from coal processing and combustion. This approach includes recovery and utilisation of methane emissions from coal mines, as well as those from oil and gas operations, landfills, and the agricultural sector, as set out, inter alia, by the Global Methane Initiative in which the Parties are Partners.
Chapter 2. MACRO-ECONOMIC COOPERATION
Article 325.
The Parties shall facilitate the process of economic reform by co-operating to improve understanding of the fundamentals of their respective economies and the formulation and implementation of economic policy in market economies. Ukraine shall strive to establish a functioning market economy, in accordance with the guiding principles of macroeconomic stability, sound public finances and a sustainable balance of payments.
Article 326.
In order to achieve the objectives set out in Article 325 of this Agreement, the Parties shall cooperate to:
(a) exchange information on macroeconomic performance and prospects and on strategies for development;
(b) analyse jointly economic issues of mutual interest, including economic policy measures and the instruments for implementing them, such as methods for economic forecasting and elaboration of strategic policy documents, with a view to strengthening Ukraine's policy-making in line with international best practices;
(c) exchange expertise in the sphere of macro-economy.
Chapter 3. MANAGEMENT OF PUBLIC FINANCES: BUDGET POLICY, INTERNAL CONTROL AND EXTERNAL AUDIT
Article 327.
Cooperation in the field of management of public finances shall aim at ensuring the development of budget policy and sound systems of public internal control and external audit, on the basis of international standards, and which are compatible with the fundamental principles of accountability, transparency, economy, efficiency and effectiveness.
Article 328.
The Parties shall exchange information, experience, best practice and take other actions, in particular on the following:
1. In the area of budget policy: (a) development of a medium-term budget forecast/planning system;
(b) improvement of programme-targeted approaches in the budget process and analysis of the efficiency and effectiveness of the implementation of budget programmes;
(c) improvement in the exchange of information and experience on planning and execution of the budget and on public debt.
2. In the area of external audit:
- implementation of the International Organisation of Supreme Audit Institutions (INTOSAI) standards and methods as well as exchange of best practices in the field of external control and audit of public finances, paying particular attention to the independence of the relevant bodies of the Parties;
3. In the area of public internal financial control:
- further developing the public internal financial control system through harmonisation with internationally-agreed standards (Institute of Internal Auditors (IIA), International Federation of Accountants (IFAC), INTOSAI) and methodologies, as well as best practice for internal control and internal audit in state bodies;
4. In the area of the fight against fraud:
- improvement of methods aimed at combating and preventing fraud and corruption in the area covered by this Chapter, including cooperation between relevant administrative bodies.
Chapter 4. TAXATION
Article 329.
The Parties shall cooperate to enhance good governance in the tax area, with a view to the further improvement of economic relations, trade, investment and fair competition.
Article 330.
1. With reference to Article 329 of this Agreement, the Parties recognise and commit to implementing the principles of good governance in the area of taxation reflecting the OECD principles concerning fair tax competition, the global standards on tax transparency and exchange of information, and the OECD minimum standards against Base Erosion and Profit Shifting (BEPS). To that end, the Parties will improve international cooperation in the tax area, facilitate the collection of legitimate tax revenues, and develop measures for the effective implementation of the abovementioned principles.
2. Nothing in this Agreement affects the rights and obligations, under any tax convention, of the United Kingdom and Ukraine. In the event of any inconsistency between this Agreement and any such tax convention, the tax convention prevails to the extent of the inconsistency.
3. For the purposes of this Article "tax convention" means a convention for the avoidance of double taxation, or any other international taxation agreement or arrangement (including, for the avoidance of doubt, such a convention, agreement or arrangement which is made after this Agreement is ratified, or any amendment to such a convention, agreement or arrangement).
Article 331.
The Parties shall also enhance and strengthen their cooperation aimed at the improvement and development of Ukraine's tax system and administration, including the enhancement of collection and control capacity, to avoid accumulation of arrears, ensure effective tax collection and reinforce the fight against tax fraud and tax avoidance. The Parties shall strive to enhance cooperation and sharing of experiences in combating tax fraud, in particular carousel fraud.
Article 332.
The Parties shall develop their cooperation in counteracting and fighting fraud and smuggling of excisable products. To this end, the Parties will look to strengthen their cooperation within the regional context.
Chapter 5. STATISTICS
Article 333.
The Parties shall develop and strengthen their cooperation on statistical issues, thereby contributing to the long-term objective of providing timely, internationally comparable and reliable statistical data. It is expected that a sustainable, efficient and professionally independent national statistical system shall produce information relevant to citizens, businesses and decision-makers in the UK and in Ukraine, thus enabling them to take informed decisions. The national statistical system should respect the UN Fundamental Principles of Official Statistics, taking into account international standards and best practice, in order to harmonise the national statistical system with internationally comparable norms and standards.
Article 334.
Cooperation shall aim at:
(a) further strengthening the capacity of the national statistical system, focusing on a sound legal basis, adequate data and metadata dissemination policy and user- friendliness;
(b) fine-tuning of data provision, taking into account the application of relevant international methodologies, including classifications;
(c) enhancing the professional and management capacity of the national statistical staff to facilitate the application of statistical standards and to contribute to the development of the Ukrainian statistical system;
(d) exchanging experience between the Parties on the development of statistical know-how;
(e) promoting total quality management of all statistical production processes and dissemination.
Article 335.
The Parties shall further cooperate, inter alia, on the areas of:
(a) population statistics, including censuses;
(b) agricultural statistics, including agricultural censuses and environment statistics;
(c) business statistics, including business registers and the use of administrative sources for statistical purposes;
(d) energy, including balances;
(e) national accounts;
(f) foreign trade statistics;
(g) regional statistics;
(h) total quality management of all statistical production processes and dissemination.
Article 336.
The Parties shall, inter alia, exchange information and expertise, and shall develop their cooperation, taking into account the already accumulated experience in reforming the statistical system. In the statistical data production process, emphasis will be placed on further development of sample surveys, while taking into account the need to reduce the response burden. The data shall be relevant to the designing and monitoring of policies in all key areas of social and economic life.
Chapter 6. ENVIRONMENT
Article 337.
The Parties shall develop and strengthen their cooperation on environmental issues, thereby contributing to the long-term objective of sustainable development and green economy. It is expected that enhanced environmental protection will bring benefits to citizens and businesses in the UK and in Ukraine, including through improved public health, preserved natural resources, increased economic and environmental efficiency, integration of environment into other policy areas, and higher production as a result of modern technologies. Cooperation shall be conducted in the best interests of the Parties on the basis of equality and mutual benefit while also taking into account interdependence existing between the Parties in the field of environmental protection and related multilateral agreements.
Article 338.
Cooperation shall aim at preserving, protecting, improving, and rehabilitating the quality of the environment, protecting human health, prudent and rational utilisation of natural resources and promoting measures at international level to deal with regional or global environmental problems, inter alia in the areas of:
(a) Climate Change;
(b) environmental governance and horizontal issues, including education and training, and access to environmental information and decision-making processes;
(c) air quality;
(d) water quality and water resource management, including marine environment;
(e) waste and resource management;
(f) nature protection, including conservation and protection of bio and landscape diversity (eco-networks);
(g) industrial pollution and industrial hazards;
(h) chemicals;
(i) genetically modified organisms, including in the field of agriculture;
(j) noise pollution;
(k) civil protection, including natural and man-made hazards;
(l) urban environment;