(vi) Other processes agreed to by said Committee;
(e) To establish ad hoc technical working groups and define their mandates, objectives, functions and timeframes to present the results of their work programmes, as well as serving as a forum to monitor the commitments established in said programmes;
(f) To agree on issues, positions and agendas for meeting sessions held by the WTO's Committee on Sanitary and phytosanitary measures, the different Codex Alimentarius Committees; the International Convention on Phytosanitary Protection; the OIE and other international and regional forums in the field of sanitary and phytosanitary measures;
(g) To establish cooperation and technical assistance programmes;
(h) To exchange information in the field of sanitary and phytosanitary measures such as the occurrence of incidents, change or introduction of regulations and standards by the Parties relating to the field, which may, directly or indirectly, affect trade between the Parties;
(i) To create work programmes in the field of regulatory cooperation to facilitate trade between the Parties;
(j) To explore mechanisms in the field of the application of sanitary and phytosanitary measures to promote the joint access of goods originating from the Parties to non-Party states;
(k) To promote, insofar as possible, the creation of yearly and half-yearly work programmes in respect of the sanitary and phytosanitary regulations of each Party;
(l) To inform the Free Trade Commission of the application of this Chapter and formulate relevant recommendations with regards to questions on its competence; and
(m) Other functions agreed upon by the Parties, including those dictated by the Free Trade Commission.
Article 6.15. Competent Authorities and Points of Contact
1. The competent authorities responsible for the implementation of the measures laid out in this Chapter are listed in Annex 6.15.1.
2. The points of contact responsible for communication between the Parties, under this Additional Protocol, are listed in Annex 6.15.2.
3. The Parties shall inform each other of any significant change to the structure, organisation and distribution of the responsibilities held by their competent authorities or points of contact.
Chapter 7. TECHNICAL BARRIERS TO TRADE
Article 7.1. Objectives
The objectives of this Chapter are as follows:
(a) To facilitate and create growth in trade and obtain effective market access through improvement of the TBT Agreement ;
(b) To deepen the integration of existing agreements between the Parties in areas concerning technical barriers to trade;
(c) To ensure that the standards, technical regulations and conformity assessment procedures do not create unnecessary technical barriers to trade; and
(d) To facilitate, increase and promote cooperation between the Parties.
Article 7.2. Scope of Application
1. The provisions of this Chapter apply to the creation, adoption and application of the standards, technical regulations and conformity assessment procedures of the Parties (1), including those at central government or federal level and local public bodies, which may directly or indirectly affect the trade in goods between the Parties.
2. The provisions of this Chapter are not applicable to sanitary and phytosanitary measures, which shall be governed by Chapter 6 (Sanitary and Phytosanitary Measures).
3. The procurement specifications created by government bodies, for the production or consumption requirements of said bodies, shall not be subject to the provisions of this Chapter, and shall be governed by Chapter 8 (Government Procurement).
Article 7.3. Incorporation of the TBT Agreement
The TBT Agreement shall be incorporated in this Chapter as and shall form an integral part of it, mutatis mutandis.
Article 7.4. International Standards
On determining that an international standard, guideline or recommendation exists in the meaning of Articles 2 and 5 of Annex 3 of the TBT Agreement, the Parties shall apply the principles established in Decisions and Recommendations adopted by the Committee since 1 January 1995, (2) Annex of Part | B (Decision of the Committee relating to Principles for the Creation of Intemational Standards, Guidelines and Recommendations in accordance with Articles 2, 5 and Annex 3 of the Agreement), issued by the WTO's Committee for Technical Barriers to Trade.
Article 7.5. Cooperation and Facilitation of Trade
1. The Parties shall seek to identify, develop and promote initiatives which facilitate trade, are appropriate for the issues and sectors concerned, with regards to standards, technical regulations and conformity assessment procedures, taking into consideration the Parties' respective experience in other bilateral, regional or multilateral agreements as and when appropriate. Such initiatives may take, among others, the following forms:
(a) Intensifying joint cooperation to increase knowledge and understanding of their respective systems with the aim of facilitating market access;
(b) Promoting the compatibility or equivalence of technical regulations or conformity assessment procedures;
(c) Using accreditation as a tool to recognise conformity assessment bodies established in the other Parties' territories in accordance with international practices and standards, as well as cooperation through mutual recognition agreements;
(d) Favouring the convergence or harmonisation with international standards; and
(e) Recognising and accepting the results of conformity assessment procedures.
2. The Parties recognise the existence of a wide range of mechanisms to support greater regulatory coherence and eliminate unnecessary technical barriers to trade in the region, including:
(a) Encouraging regulatory dialogue and cooperation with the goal of:
(i) Exchanging information on regulatory practices and focuses;
(ii) Promoting the use of best regulatory practices to improve the efficiency and effectiveness of standards, technical regulations and conformity assessment procedures;
(iii) Providing guidance and technical assistance, on mutually agreed terms and conditions, to improve practices related to the development, implementation and review of technical regulations, standards and conformity assessment procedures;
(iv) Providing, among others, technical assistance and cooperation, on mutually agreed terms and conditions, to improve competition and support the implementation of this Chapter;
(b) Promoting, promulgating and exchanging experience and information with regards to the possibility of accepting the technical regulations of other Parties as equivalent;
(c) Furthering, as much as possible, the harmonisation of national standards with international standards; and
(d) Encouraging greater use of international standards, guidelines and recommendations as a basis for technical regulations and conformity assessment procedures.
3. In respect of the provisions of paragraphs 1 and 2, the Parties recognise that the selection of appropriate mechanisms in a defined regulatory context shall depend upon a variety of factors, such as: the product and sector involved, the volume and direction of trade, the relationship between the Parties' respective regulators, the legitimate aims pursued and the risks incurred in failing to achieve those objectives.
4. The Parties shall intensify the exchange and cooperation with mechanisms to facilitate the acceptance of conformity assessment results so as to support greater regulatory coherence and eliminate unnecessary technical barriers to trade.
5. The Parties shall encourage cooperation between their respective organisations responsible for technical regulation, normalisation, conformity assessment, accreditation and metrology, whether these be governmental or non-governmental, with a view to addressing various questions covered by this Chapter.
6. When a Party prevents, at the point of entry, a good entering from the territory of another Party due to non-fulfilment of a technical regulation, it must notify the importer or respective customs agent as soon as possible of the reasons for preventing entry.
7. The Parties shall exchange information on the use of standards in connection with technical regulation and shall ensure, as far as possible, that the aforementioned standards indicated in the regulation drafts are provided on request by the other Parties.
8. The Parties shall attempt, insofar as possible, to present a common position based on mutual interests in international standardisation forums.
Article 7.6. Technical Regulations
A Party, on the request of any other Party, shall explain the reasons for which that Party's technical regulation was not accepted as equivalent, without prejudice to the provisions of Article 2.7 of the TBT Agreement.
Article 7.7. Conformity Assessment
1. Recognising that there are differences in the conformity assessment procedures of their respective territories, the Parties shall, to the greatest extent possible and in accordance with international standards and with the provisions of this Chapter, make their conformity assessment procedures compatible.
2. Each Party recognises that there is a wide range of mechanisms facilitating the acceptance of conformity assessment results carried out in other Parties, including:
(a) Voluntary agreements between the Parties' conformity assessment bodies;
(b) Agreements on the mutual acceptance of the results of the conformity assessment processes with regards to specific technical regulations, carried out by local bodies in the other Parties' territories;
(c) Accreditation processes to certify conformity assessment bodies;
(d) Government approval or appointment of conformity assessment bodies;
(e) Recognition of the results of conformity assessment bodies in the other Parties' territories; and
(f) Acceptance by the importing Party of the supplier's declaration of conformity.
3. The Parties shall intensify their exchange of information in relation to these and similar mechanisms in order to facilitate acceptance of the results of the conformity assessment.
4. If one Party does not accept the results of the conformity assessment procedures carried out in the other Party's territory, it must, on the request of this other Party, explain the reasons for its decision so that the actions necessary to correct it may be taken.
5. Each Party shall accredit, approve, authorise or recognise the conformity assessment bodies in the other Parties' territories, with terms no less favourable than those granted to the same in its own territory. When, despite proceeding in this manner, a Party refuses to accredit, approve, authorise or recognise a body charged with carrying out the assessment of a specific technical regulation in the territory of the other Parties, it must, upon request, explain the reasons for its refusal so that such corrective steps as may be required may be taken.
6. The Parties shall consider favourably negotiation or Mutual Recognition Agreements for the results of their respective conformity assessment procedures carried out by bodies in the territories of the other Parties. If any of the Parties refuses to begin these negotiations it must, upon request, explain the reasons for its decision.
7. With the aim of building mutual trust in the results of the conformity assessment, the Parties may request information on aspects such as the technical competence of the conformity assessment bodies involved.
Article 7.8. Transparency
1. The Parties shall notify one another by email, through the point of contact established by each Party, in accordance with Article 10 of the TBT Agreement, of the drafts and amendments to the technical regulations and conformity assessment procedures, and those adopted to handle urgent problems as per the terms agreed upon in the TBT Agreement, at the same time that they send notification to the WTO's Central Registry of Notifications. Said notification must include an electronic link to the document in question, or a copy of the same.
2. The Parties must notify those technical regulations and conformity assessment procedures which correspond with the technical content of relevant international standards.
3. Each Party must respond formally to submissions received from the other Parties during the consultation time period stipulated in the notification, no later than the date of publication of the technical regulation and conformity assessment procedure. In turn, each Party shall publish or make available to the public or other Parties, be it in print or electronic form, their responses to the main submissions it has received from the other Parties, no later than the date of publication of the final version of the technical regulation or conformity assessment procedure.
4. The Parties shall ensure that the information pertaining to final drafts, as well as final technical regulations and conformity assessment procedures, is available to the public on a central website.
5. Each Party shall, in accordance with its own internal processes, allow interested persons from other Parties to participate in the development of its standards, technical regulations and conformity assessment procedures, in terms no less favourable than those granted its own nationals.
6. Each Party shall allow a time period of at least 60 days, beginning from the notification indicated in paragraph 1 of this Article, so that other Parties may make written submissions on the proposals for technical regulation and conformity assessment procedures, except when urgent problems threaten or occur. Each Party shall positively consider reasonable requests from the other Parties to extend said submission period.
7. Subject to the conditions specified in Article 2.12 of the TBT Agreement, regarding the reasonable period between the publication of the technical regulations and their entry into force, the Parties shall interpret the expression "reasonable period" as meaning, normally, a period of no fewer than six months, except when it is not practicable to accomplish the desired legitimate objectives within this time.
8. If there are yearly and half-yearly work programmes dedicated to standards and technical regulations, the Parties shall make their best effort to promote public awareness thereof through print or electronic publications.
Article 7.9. Committee on Technical Barriers to Trade
1. The Parties hereby establish a Committee on Technical Barriers to Trade (hereinafter the "Committee"), comprised of representatives appointed by each Party in accordance with Annex 7.9.
2. The committee's functions shall include, among others:
(a) Monitoring the implementation and administration of this Chapter;
(b) Dealing promptly with such matters as another Party may raise with regards to the creation, adoption, application or execution of standards, technical regulations or conformity assessment procedures;
(c) Increasing cooperation on the creation and improvement of standards, technical regulation and conformity assessment procedures;
(d) Facilitating, as and when appropriate, sector cooperation between governmental and non-governmental bodies in the field of standards, technical regulations and conformity assessment procedures in the Parties' territories, as well as facilitating the process of Mutual Recognition Agreements and equivalence of technical regulations;
(e) Exchanging information on work carried out in non-governmental, regional and multilateral forums and cooperation programmes involved in activities related to standards, technical regulations and conformity assessment procedures;
(f) Reviewing this Chapter in light of what takes place within the WTO's Committee on Technical Barriers to Trade and creating recommendations to modify this Chapter if necessary;
(g) Reporting to the Free Trade Commission on the implementation of this Chapter;
(h) Establishing, as and when necessary, for specific issues or sectors, working groups to handle specific matters relating to this Chapter and the TBT Agreement;
(i) Holding, on request by a Party, technical meetings on any matter pertaining to this Chapter;
(j) Establishing roundtables with the aim of covering topics of interest in the field of regulatory cooperation;
(k) Carrying out any other action that the Parties consider necessary to help in the implementation of this Chapter and the TBT Agreement, as well as the facilitation of trade in goods between the Parties;
(l) Analysing the most appropriate means with a view to, depending on agreement between the Parties, allowing the importing Party to accept, expediently, the results of the conformity assessment, in accordance with its technical regulations issued by conformity assessment bodies located in the territory of the exporting Party, so long as these bodies are accredited in the corresponding subject and sector by the national accreditation body(ies) which have themselves been recognised by international accreditation body(ies) of reference agreed upon by the Parties; and
(m) Promoting, as much as possible, the creation of yearly or half-yearly work programmes for standards and technical regulations.
3. Upon request, the Committee shall give favourable consideration to any request by a specific sector that a Party identifies to deepen cooperation in accordance with this Chapter.
4. The Committee shall meet according to the locations, agendas and times deemed necessary by the request of the Parties. The meetings shall be held face to face, via teleconference, videoconference or any other method, agreed upon by the Parties.
5. The Committee shall agree, during its first session, on a critical route to regulatory cooperation which shall serve as the basis for future work in this area.
Article 7.10. Exchange of Information
Any information or explanation requested by a Party, by virtue of the provisions established in this Chapter, must be supplied by the other Parties in print or electronic form within the 60 day
period following the request's being made. The Party shall ensure it responds to every request within the 30 day period following the submission of the same.
Article 7.11. Implementation Annexes
The Parties may negotiate to include annexes aimed at deepening the areas covered in this Chapter, which shall form an integral part of the same.
Article 7.12. Technical Meetings
1. Each Party shall give prompt and positive consideration to any request made by another Party to hold meetings on specific trade issues related to the application of this Chapter.
2. When the Parties have concluded the meetings in Article 7.9.2 (i) such meetings may, by joint agreement, constitute the meetings referred to in Article 17.5 (Meetings).
Chapter 8. GOVERNMENT PROCUREMENT
Article 8.1. Definitions
For the purposes of this Chapter:
Concession contracts for public works refers to any contractual agreement whose main purpose is to provide for the construction or renovation of physical infrastructure, factories, buildings, installations or other public works, pursuant to which and in consideration of the execution of a contract by a supplier, an entity grants to the supplier, for a specified period, temporary ownership or a right to control, operate, and demand payment for the use of such works for the duration of the contract;
Entity refers to an entity listed in Annex 8.2;
Procurement notice refers to a notice published by the entity in which interested suppliers are invited to submit an application for participation, a tender, or both;
Offsets refers to any condition or commitment which fosters local development or improves the balance of payments accounts of one Party, such as local content requirements, technology licensing, investment requirements, counter-trade or similar requirements or measures;
Services includes construction services, unless otherwise specified. Supplier refers to a person who provides or could provide goods or services to an entity, and
Technical specification refers to a contractual requirement that:
(a) sets down the characteristics of:
(i) The goods to be procured, such as quality, performance, safety and dimensions, or the processes and methods of production, or
(ii) The services to be procured, or their processes and methods of delivery, or
(b) establishes the terminology, symbols, packaging, marking or labelling requirements applicable to a good or service;
Written or in writing means any expression in words, numbers or other symbols that can be read, reproduced and subsequently communicated. It may include electronically transmitted and stored information;
Article 8.2. Scope of Application
1. This Chapter applies to measures adopted or maintained by a Party relating to government procurement covered by this Chapter, understood as that which is performed:
(a) By an entity;
(b) By any contractual means, including purchase and rental or lease, with or without option to purchase and concession contracts for public works;
(c) With goods and services in accordance with Annex 8.2;
(d) Whose estimated contract value is equal to or greater than the value of the relevant threshold specified in Annex 8.2, and
(e) Subject to the other terms and conditions set forth in Annex 8.2.
2. This Chapter does not apply to:
(a) Non-contractual agreements or any other form of assistance provided by a Party, including grants, loans, capital contributions, tax incentives, subsidies, guarantees and cooperative agreements;
(b) Public provision of goods and services to persons or regional- or local-level governments;
(c) Procurement for the direct purpose of providing foreign assistance;
(d) Procurement funded by international grants, loans or other forms of international assistance, where the provision of such assistance is subject to conditions incompatible with the provisions of this Chapter;
(e) The recruitment of public servants and measures related to their employment;
(f) The procurement or acquisition of tax agency or deposit services, liquidation or management services for regulated financial institutions, or services related to the sale, redemption and distribution of public debt, including loans, government bonds and other securities. For greater certainty, this Chapter does not apply to the government procurement of banking, fiduciary, financial or specialised or other services related to the following activities:
(i) Public debt, or
(ii) Management of public debt;
(g) Procurement by an entity to another entity of that State Party whether or not covered by this Chapter, and
(h) The acquisition or rental of land, existing buildings or other immovable property or rights thereon.
3. No entity may prepare, design or otherwise structure or divide any procurement at any stage of the procurement process in order to avoid the obligations of this Chapter.
4. When an entity awards a contract that is not covered by this Chapter, no provision in this Chapter shall be construed to cover any good or service component of that contract.
Article 8.3. General Principles
National Treatment and Non-Discrimination
1. With respect to any measure covered by this Chapter, each Party, including its entities, shall immediately and unconditionally accord treatment no less favourable to the goods and services of any other Party and to the suppliers of the Parties than the most favourable treatment said Party accords to its own goods, services and suppliers, as well as the goods, services and suppliers of the other Parties. For greater certainty, this obligation applies only to the treatment accorded to any goods, services and suppliers of the other Parties under this Additional Protocol.
2. With respect to any measure regulating government procurement covered by this Chapter, no Party may:
(a) Treat a locally established supplier less favourably than another supplier established locally on the basis of degree of foreign affiliation or ownership, or
(b) Discriminate against a locally established supplier on the basis that the goods or services offered by that supplier for a particular government procurement are the goods or services of another Party.
3. Paragraphs 1 and 2 shall not apply to:
(a) Customs duties, including fees or other charges of any kind imposed on imports or in connection therewith; the method of levying such duties and charges; or other import regulations, or
(b) Measures affecting trade in services other than measures specifically regulating government procurement covered by this Chapter.
Rules of Origin 4. For the purposes of paragraphs 1 and 2, the determination of origin of goods shall be made on the basis of the rules applicable in the normal course of trade of such goods.