Article 111. Relation to other Chapters
The provisions of Chapters 7 and 8 shall not apply to measures referred to in paragraph 1 of Article 107.
Article 112. Definitions
For the purposes of this Chapter:
(a) the term "cross-border financial service supplier" means a person of a Party that is engaged in the business of supplying financial services within the Area of the Party and that seeks to supply or supplies financial services through the cross-border supply of such services;
(b) the term "cross-border trade in financial services" means the supply of a financial service:
(i) from the Area of a Party into the Area of the other Party;
(ii) in the Area of a Party by a person of that Party to a person of the other Party; or
(iii) by a national of a Party in the Area of the other Party; but does not include the supply of a service by an investment of an investor of a Party, in the Area of that other Party;
(c) the term "financial institution" means any enterprise that is authorized to do business and regulated or supervised as a financial institution under the law of the Party in which it is located;
(d) the term "financial institution of the other Party" means a financial institution located in a Party that is owned or controlled by persons of the other Party;
(e) the term "financial service" means a service of a financial nature, including insurance, and a service incidental or auxiliary to a service of a financial nature;
(f) the term "investment" means "investment" as defined in Article 96, except that, with respect to "loan" and "debt security" referred to in that Article:
(i) a loan to or debt security issued by a financial institution is an investment only where it is treated as regulatory capital by the Party in which the financial institution is located; and
(ii) a loan granted by or debt security owned by a financial institution, other than a loan to or debt security of a financial institution referred to in subparagraph
(i)above, is not an investment; for greater certainty,
(iii) a loan to, or debt security issued by, a Party or a state enterprise thereof is not an investment; and
(iv) a loan granted by or debt security owned by a cross-border financial service supplier, other than a loan to or debt security issued by a financial institution referred to in subparagraph (i) above, is an investment under Chapter 7 if such loan or debt security meets the criteria for investments set out in Article 96;
(g) the term "investor of a Party" means a Party or state enterprise thereof, or a person of that Party, that seeks to make, makes, or has made an investment; and
(h) the term "public entity" means a central bank or a monetary authority of a Party, or any financial institution owned or controlled by a Party.
Chapter 10. Entry and Temporary Stay of Nationals for Business Purposes
Article 113. General Principles
1. This Chapter reflects the preferential trading relationship between the Parties, the desirability off acilitating entry and temporary stay on a reciprocal basis and of establishing transparent criteria and procedures for entry and temporary stay, and the need to ensure border security and to protect the domestic labor force and permanent employment in either Party.
2. Each Party shall apply its measures relating to the provisions of this Chapter in accordance with paragraph 1above, and in particular, shall apply expeditiously those measures so as to avoid unduly impairing or delaying trade in goods or services or conduct of investment activities under this Agreement.
Article 114. Scope and Coverage
1. This Chapter shall apply to measures affecting the entry and temporary stay of nationals of a Party who enter into the other Party for business purposes.
2. This Chapter shall not apply to measures affecting nationals seeking access to the employment market of the Parties, nor shall it apply to measures regarding nationality or citizenship, or residence or employment on a permanent basis.
3. This Chapter shall not prevent a Party from applying measures to regulate the entry of nationals of the other Party into, or their temporary stay in, the former Party, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under the terms of the categories in Annex 10.
Note: The sole fact of requiring a visa for natural persons of a certain nationality and not for those of others shall not be regarded as nullifying or impairing benefits under a specific category.
Article 115. Grant of Entry and Temporary Stay
1. Each Party shall grant entry and temporary stay to nationals of the other Party in accordance with this Chapter including the terms of the categories in Annex 10.
2. Each Party shall ensure that fees charged by its competent authorities for processing applications for entry and temporary stay of nationals of the other Party for business purposes have regard to the administrative costs involved.
Article 116. Provision of Information
1. Further to Article 160, each Party shall:
(a) provide to the other Party such materials as will enable that other Party to become acquainted with its measures relating to this Chapter; and
(b) prepare, publish and make publicly available in the Parties, explanatory material in a consolidated document regarding the requirements for entry and temporary stay under this Chapter, no later than one year after the date of entry into force of this Agreement.
2. From the entry into force of this Agreement, each Party shall, to the extent possible, collect, maintain and make available to the other Party, data respecting the granting of entry and temporary stay under this Chapter to nationals of the other Party.
Article 117. Sub-committee on Entry and Temporary Stay
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Entry and Temporary Stay (hereinafter referred to in this Article as"the Sub-Committee") shall be established pursuant to Article 165.
2. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Chapter;
(b) considering the development of measures to further facilitate entry and temporary stay of nationals on a reciprocal basis;
(c) enhancing mutual understanding between the Parties on credentials and other qualifications relevant to entry and temporary stay of nationals under this Chapter;
(d) reporting the findings of the Sub-Committee and making recommendations to the Joint Committee;and
(e) carrying out other functions which may be delegated by the Joint Committee pursuant to Article 165. Such functions may include reporting to the Joint Committee on options for possible modifications or additions to this Chapter.
Article 118. Dispute Settlement
1. Notwithstanding the provisions of Article 152, a Party may not request consultations with the other Party regarding refusal to grant entry and temporary stay under this Chapter unless:
(a) the matter involves a pattern of practice; and
(b) the nationals concerned have exhausted the administrative remedies, where available, regarding the particular matter.
2. The remedies referred to in subparagraph 1(b) above shall be deemed to be exhausted if a final determination in the matter has not been issued by the competent authority of a Party within one year after the date of the institution of an administrative remedy, and the failure to issue a determination is not attributable to delay caused by the nationals concerned.
Chapter 11. Government Procurement
Article 119. Scope and Coverage
1. This Chapter shall apply to any measures adopted or maintained by a Party relating to government procurement:
(a) by entities specified in Annex 11;
(b) of goods specified in Annex 12, services specified in Annex 13, or construction services specified in Annex 14; and
(c) where the value of the contracts to be awarded is estimated to be not less than the thresholds specified in Annex 15 at the time of publication of an invitation to participate for procurement.
2. Paragraph 1 above is subject to the General Notes set out in Annex 16.
3. This Chapter shall apply to government procurement by any contractual means, including through such methods as purchase or as lease, rental or hire purchase, with or without an option to buy, including any combination of goods and services.
4. Subject to paragraph 5 below, where a contract to be awarded by an entity is not covered by this Chapter, this Chapter shall not be construed to cover any good or service component of that contract.
5. Neither Party shall prepare, design or otherwise structure any government procurement contract in order to avoid the obligations of this Chapter.
Article 120. National Treatment
1. With respect to any measures regarding government procurement covered by this Chapter, each Party shall provide immediately and unconditionally to the goods, services and suppliers of the other Party offering goods or services of the other Party, treatment no less favorable than that accorded to domestic goods, services and suppliers.
2. With respect to any measures regarding government procurement covered by this Chapter, each Party shall ensure:
(a) that its entities shall not treat a locally-established supplier less favorably than another locally-established supplier on the basis of the degree of affiliation to, or ownership by, a person of the other Party; and
(b) that its entities shall not discriminate against locally-established suppliers on the basis of the country of production of the goods or service being supplied, provided that the country of production is the other Party in accordance with the provisions of Article 121.
3. The provisions of paragraphs 1 and 2 above shall not apply to customs duties and charges of any kind imposed on or in connection with importation, the method of levying such duties and charges, other import regulations and formalities, and measures affecting trade in services other than measures regarding government procurement covered by this Chapter.
Article 121. Rules of Origin
1. A Party shall not apply rules of origin to goods or services imported or supplied for purposes of government procurement covered by this Chapter from the other Party which are different from the rules of origin applied by the former Party in the normal course of trade. Note: Rules of origin to services applied in the normal course of trade shall be understood in accordance with paragraph (f) "service of another Member" and (g) "service supplier" of Article XXVIII "Definitions" of the GATS.
2. Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to a service supplier of the other Party where the denying Party establishes that the service is being provided by an enterprise that is owned or controlled by persons of a non-Party and that has no substantial business activities in the Area of any Party.
3. A Party may deny to an enterprise of the other Party the benefits of this Chapter if nationals of a non-Party own or control the enterprise and:
(a) the denying Party does not maintain diplomatic relations with the non-Party; or
(b) the denying Party adopts or maintains measures with respect to the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise.
Article 122. Procurement Procedures and other Provisions
1. Each Party shall apply the respective rules and procedures set up in accordance with the provisions, as maybe amended, specified in Annex 18.
2. Where a Party considers that a modification to rules and procedures of the other Party corresponding to an amendment of the provisions specified in Annex 18 affects access to the other Party's government procurement market considerably, the former Party can request consultations in order to maintain equivalence between the treatments under the rules and procedures of the Parties. If no satisfactory solution can be found, the former Party may have recourse to the dispute settlement procedure under Chapter 15, with a view to maintaining an equivalent level of access to the other Party's government procurement market.
3. The Party concerned shall notify the other Party of any modification to the rules and procedures referred to in paragraph 1 above no later than 30 days prior to the date of entry into force of such modification.
4. If, in tendering procedures, an entity allows tenders to be submitted in several languages, one of those languages shall be English.
5. No entity of either Party shall make it a condition for the qualification of suppliers and for the awarding of a contract that the supplier has previously been awarded one or more contracts by an entity of that Party or that the supplier has prior work experience in the Area of that Party.
Article 123. Offsets
Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, goods or services, in the evaluation of bids or the award of contracts, consider, seek or impose offsets, except as set out in the General Notes of Annex 16. For the purpose of this Article, offsets means conditions considered, sought or imposed by an entity prior to or in the course of its procurement process that encourage local development or improve its Party's balance of payments accounts, by means of requirements of local content, licensing of technology, investment, counter-trade or similar requirements.
Article 124. Provision of Information
1. Each Party shall promptly publish any law, regulation, judicial decision, administrative ruling of general application, and any procedure (including standard contract clauses) regarding government procurement covered by this Chapter, in the appropriate publications listed in Annex 17and in such a manner as to enable the other Party and suppliers to become acquainted with them.
2. The Party of an unsuccessful tenderer may seek, without prejudice to the provisions under Chapter 15, such additional information on the contract award as may be necessary to ensure that the procurement was made fairly and impartially. To this end, the Party of the procuring entity shall provide information on both the characteristics and relative advantages of the winning tender and the contract price. Normally this latter information may be disclosed by the former Party provided it exercises this right with discretion. In cases where release of this information would prejudice competition in future tenders, this information shall be confidential and not be disclosed except after consultation with and agreement of the latter Party which gave the information to the former Party.
3. Available information concerning procurement by covered entities and their individual contract awards shall be provided, upon request, to the Party requesting the information.
4. Confidential information provided to a Party which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interest of particular enterprises, public or private, or might prejudice fair competition between suppliers shall not be revealed without formal authorization from the other Party.
5. With a view to ensuring effective monitoring of government procurement covered by this Chapter, each Party shall collect statistics and provide to the other Party on a reciprocal basis an annual report which shall contain the following information to the extent that such information is available:
(a) statistics on the number and total value of contracts above and below the applicable threshold values broken down by entities;
(b) statistics on the number and total value of contracts above the applicable threshold values, broken down by entities, by categories of goods and services and by the country of origin of the goods and services procured; and
(c) statistics on the number and total value of contracts awarded under limited tendering procedures, broken down by entities, and by country of origin of the goods and services procured.
Article 125. Challenge Procedures
1. In the event of a complaint by a supplier that there has been a breach of this Chapter in the context of a government procurement, each Party shall encourage the supplier to seek resolution of its complaint in consultation with the procuring entity. In such instances the procuring entity shall accord impartial and timely consideration to any such complaint, in a manner that is not prejudicial to obtaining corrective measures under the challenge system. 2. Each Party shall provide non-discriminatory, timely, transparent and effective procedures enabling suppliers to challenge alleged breaches of this Chapter arising in the context of government procurement in which they have, or have had, an interest.
3. Each Party shall provide its challenge procedures in writing and make them generally available.
4. Each Party shall ensure that documentation relating to all aspects of the process concerning government procurement covered by this Chapter shall be retained for3 years. 5. The interested supplier may be required to initiate a challenge procedure and notify the procuring entity within specified time-limits from the time when the basis of the complaint is known or reasonably should have been known, but in no case within a period of less than 10 days.
6. A Party may require that a challenge procedure be initiated only after the notice of procurement has been published or, where a notice is not published, after tender documentation has been made available. Where a Party imposes such a requirement, the 10 day period described in paragraph 5 above shall begin no earlier than the date that the notice is published or the tender documentation is made available.
7. Challenges shall be heard by an impartial and independent reviewing authority with no interest in the outcome of the government procurement and the members of which are secure from external influence during the term of appointment. A reviewing authority which is not a court shall either be subject to judicial review or shall have procedures which provide that:
(a) participants can be heard before an opinion is given or a decision is reached;
(b) participants can be represented and accompanied;
(c) participants shall have access to all proceedings;
(d) proceedings can take place in public;
(e) opinions or decisions are given in writing with a statement describing the basis for the opinions or decisions;
(f) witnesses can be presented; and
(g) documents are disclosed to the reviewing authority.
8. Challenge procedures shall provide for:
(a) rapid interim measures to correct breaches of this Chapter and to preserve commercial opportunities. Such action may result in suspension of the procurement process. However, procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account in deciding whether such measures should be applied. In such circumstances, just cause for not acting shall be provided in writing;
(b) an assessment and a possibility for a decision on the justification of the challenge; and
(c) where appropriate, correction of the breach of this Chapter or compensation for the loss or damages suffered, which may be limited to costs for tender preparation or protest.
9. With a view to the preservation of the commercial and other interests involved, the challenge procedure shall normally be completed in a timely fashion.
Article 126. Exceptions
1. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not disclosing any information which 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. Provided that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail, or a disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to prevent a Party from imposing, enforcing or maintaining measures:
(a) necessary to protect public morals, order or safety;
(b) necessary to protect human, animal or plant life or health;
(c) necessary to protect intellectual property; or
(d) relating to goods or services of handicapped persons, of philanthropic institutions or of prison labor.
Article 127. Sub-committee on Government Procurement
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Government Procurement (hereinafter referred to in this Article as"the Sub-Committee") shall be established pursuant to Article 165.
2. The functions of the Sub-Committee shall be:
(a) analyzing available information on each Party's government procurement market including the statistical information provided under paragraph5 of Article 124;
(b) evaluating the effective access of suppliers of a Party to government procurement market of the other Party covered by this Chapter;
(c) monitoring the application of the provisions of this Chapter and providing a forum to identify and address any problems or other issues that may arise;
(d) reporting the findings of the Sub-Committee to the Joint Committee; and
(e) carrying out other functions which may be delegated by the Joint Committee pursuant to Article 165.
3. The Parties shall cooperate, on mutually agreed terms, to increase understanding of their respective government procurement systems, with a view to maximizing for the suppliers of both Parties the access to their respective government procurement market. For this purpose, each Party shall develop and implement, within one year after the entry into force of this Agreement, concrete measures for the cooperation, which may include training and orientation programs for government personnel or interested suppliers regarding such aspects as how to identify government procurement opportunities and how to participate in the respective government procurement markets. In developing such measures, special attention should be given to small businesses in each Party.
Article 128. Rectifications or Modifications
1. A Party shall notify the other Party of its rectifications, or in exceptional cases, other modifications relating to Annexes 11, 12, 13, 14, 16 and 17along with the information as to the likely consequences of the change for the mutually agreed coverage provided in this Chapter. If the rectifications or other modifications are of a purely formal or minor nature, notwithstanding paragraph 1 of Article 174, they shall become effective provided that no objection from the other Party has been raised within 30 days. In other cases, both Parties shall consult the proposal and any claim for compensatory adjustments with a view to maintaining a balance of rights and obligations and a comparable level of mutually agreed coverage provided in this Chapter prior to such rectification or other modification. In the event of an agreement between the Parties not being reached, the Party which has received such notification may have recourse to the dispute settlement procedure under Chapter 15.
2. Notwithstanding any other provision of this Chapter, a Party may undertake reorganizations of its entities covered by this Chapter, including programs through which the procurement of such entities is decentralized or the corresponding government functions cease to be performed by any government entity, whether or not subject to this Chapter. In cases of reorganizations, compensation need not be proposed. Neither Party shall undertake such reorganizations or programs to avoid the obligations of this Chapter.
Article 129. Privatization of Entities
When government control at the federal or central government level over an entity specified in Annex 11 has been effectively eliminated, notwithstanding that the government may possess holding thereof or appoint member of the board of directors thereto, this Chapter shall nol onger apply to that entity. A Party shall notify the other Party of the name of such entity before elimination of government control or as soon thereafter as possible.
Article 130. Miscellaneous Provisions
1. The Joint Committee may make recommendations to the Parties to adopt appropriate measures to enhance the conditions for effective access to a Party's covered government procurement or, as the case may be, to adjust a Party's coverage so that such conditions for effective access are maintained on an equitable basis.
2. In the event that after the entry into force of this Agreement a Party offers a non-Party specified in paragraph3 below additional advantages of access to its government procurement market beyond what the other Party has been provided with under this Chapter, the former Party shall consent to enter into negotiations with the other Party with a view to extending these advantages to the other Party on a reciprocal basis.
3. A non-Party referred to in paragraph 2 above shall be, in the case of Japan, a Party to the Agreement on Government Procurement in Annex 4 to the WTO Agreement, as may be amended, (hereinafter referred to as "the GPA") or a party to an existing Economic Partnership Agreement with Japan and in the case of Mexico, a party to the North American Free Trade Agreement, as may be amended,(hereinafter referred to as "the NAFTA") or the European Communities.
Chapter 12. Competition
Article 131. Anticompetitive Activities
Each Party shall, in accordance with its applicable laws and regulations, take measures which it considers appropriate against anticompetitive activities, in order to facilitate trade and investment flows between the Parties and the efficient functioning of its market.
Article 132. Cooperation on Controlling Anticompetitive Activities
1. The Parties shall, in accordance with their respective laws and regulations, cooperate in the field of controlling anticompetitive activities.
2. The details and procedures of cooperation under this Article shall be specified in an implementing agreement.
Article 133. Non-discrimination
Each Party shall apply its competition laws and regulations in a manner which does not discriminate between persons in like circumstances on the basis of their nationality.
Article 134. Procedural Fairness
Each Party shall implement administrative and judicial procedures in a fair manner to control anticompetitive activities, pursuant to its relevant laws and regulations.
Article 135. Non-application of Article 164 and Chapter 15
Article 164 and the dispute settlement procedure provided for in Chapter 15 shall not apply to this Chapter.
Chapter 13. Improvement of the Business Environment
Article 136. Consultations for the Improvement of the Business Environment
The Parties, confirming their interest in creating a more favorable business environment with a view to promoting trade and investment activities by their private enterprises, shall from time to time have consultations in order to address issues concerning the improvement of the business environment in the Parties.
Article 137. Committee for the Improvement of the Business Environment
1. For the purposes of addressing issues concerning the improvement of the business environment, a Committee for the Improvement of the Business Environment (hereinafter referred to in this Article as "the Committee") shall be established.
2. The Committee:
(a) shall discuss ways and means to improve the business environment in the Parties;
(b) may, as needed, make recommendations on appropriate measures to be taken by the Parties. Such recommendations should be taken into consideration by the Parties;
(c) shall be provided with information on the implementation of such recommendations;
(d) may make public such recommendations in an appropriate manner; and
(e) may give the Joint Committee advisory opinions,where appropriate.
3. The Committee:
(a) shall be composed of representatives of the Governments of the Parties;
(b) may invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed; and
(c) shall establish its rules and procedures.
Article 138. Non-application of Chapter 15
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Chapter.
Chapter 14. Bilateral Cooperation
Article 139. Cooperation In the Field of Trade and Investment Promotion
1. The Parties shall cooperate in promoting trade and investment activities by private enterprises of the Parties, recognizing that the joint efforts of the Parties to facilitate exchange and collaboration between private enterprises will act as a catalyst to further promote trade and investment between the Parties. Such cooperation between the Parties includes:
(a) encouraging the exchange of trade, investment and marketing experts and trainees to foster business opportunities;
(b) exchanging information concerning laws, regulations and practices in relation to bilateral trade and investment;
(c) encouraging the joint organization of trade and investment missions, seminars, fairs and exhibitions;
(d) encouraging the sharing, through electronic linkages, of online databases of private enterprises of the Parties keen to establish business ties; and
(e) encouraging the exchange of information, for the identification of investment opportunities and the promotion of business alliances, for the establishment of joint ventures between private enterprises of both Parties.
2. For the purposes of the effective implementation and operation of this Article, a Sub-Committee on Cooperation in the Field of Trade and Investment Promotion (hereinafter referred to in this Article as "the Sub-Committee") shall be established pursuant to Article 165.
3. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Article;
(b) discussing any issues related to this Article;
(c) reporting the findings of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions which may be delegated by the Joint Committee pursuant toArticle 165.
Article 140. Cooperation In the Field of Supporting Industries
The Parties shall cooperate in promoting the development of supporting industries of both Parties with a view to improving the business environment and to promoting bilateral trade and investment. Such cooperation includes encouraging appropriate entities to:
(a) assist private enterprises of either Party to enter supporting industries' market of the other Party through direct investment or joint ventures;
(b) assist private enterprises of supporting industries to establish their business ties with other private enterprises of supporting industries, as well as final goods suppliers;
(c) assist actual or potential private enterprises of supporting industries through financial and technological support; and
(d) exchange experts and information on best practices and methodologies for the development of supporting industries.
Article 141. Cooperation In the Field of Small and Medium Enterprises
The Parties shall cooperate in promoting the development of small and medium enterprises of both Parties(hereinafter referred to in this Article as "SMEs") in order to maintain the dynamism of their respective economies and promote favorable environment for bilateral trade and investment. Such cooperation may include:
(a) exchange of information on SMEs policies for:
(i) strengthening competitiveness of SMEs;
(ii) assisting SMEs to start up businesses; and
(iii) promoting entrepreneurial networks of SMEs;
(b) encouragement of establishment of networks among appropriate entities of both Parties that provide assistance to SMEs; and
(c) encouragement of the exchange of experts on the development of SMEs.
Article 142. Cooperation In the Field of Science and Technology
1. The Parties, recognizing that science and technology will contribute to the continued expansion of the irrespective economies in the medium and long term, shall develop and promote cooperative activities between the Governments of the Parties for peaceful purposes in the field of science and technology on the basis of equality and mutual benefit.
2. Forms of the cooperative activities under this Article may include:
(a) exchange of information regarding science and technology policies and programs and data; (b) joint seminars, workshops and meetings;
(c) visits and exchanges of scientists, technical personnel or other experts;
(d) implementation of joint projects and programs;
(e) encouragement of cooperation for research and development related to industrial technologies;and
(f) encouragement of cooperation between educational and research institutions.
3. Scientific and technological information of a non-proprietary nature arising from the cooperative activities under this Article may be made available to the public by the Government of either Party.
4. In accordance with the applicable laws and regulations of the Parties and with relevant international agreements to which the Parties are parties, the Parties shall ensure the adequate and effective protection, and give due consideration to the distribution, of intellectual property rights or other rights of a proprietary nature resulting from the cooperative activities under this Article. The Parties shall consult for this purpose as necessary.
5. The implementation of this Article shall be subject to the availability of appropriated funds and the applicable laws and regulations of each Party.
6. Costs of the cooperative activities under this Article shall be borne in such manner as may be mutually agreed.
7. Implementing arrangements setting forth the details and procedures of the cooperative activities under this Article may be made between the government agencies of the Parties.
Article 143. Cooperation In the Field of Technical and Vocational Education and Training
The Parties, recognizing that sustainable economic growth and prosperity largely depend on people's knowledge and skills, in order to raise the productivity and competitiveness of private enterprises of either Party, shall develop cooperation between the Governments of the Parties in the field of technical and vocational education and training. Such cooperation may include:
(a) exchange of information related to best practices on technical and vocational education and training including labor policy;
(b) encouragement of technical and vocational education and training, including training of related instructors and development of training programs, particularly for the development of higher technological education and distance education; and
(c) encouragement of exchange of scholars, teachers, instructors and students.
Article 144. Cooperation In the Field of Intellectual Property
The Parties, recognizing the growing importance of intellectual property (hereinafter referred to in this Article as "IP") as a factor of economic competitiveness in the knowledge-based economy, and of IP protection in this new environment, shall develop their cooperation in the field of IP. Such cooperation may include the exchange of information on: (a) public awareness activities of the importance of IP protection and the function of IP protection systems to their respective nationals;
(b) improvement of IP protection systems and their operation;
(c) policy measures conducive to ensuring adequate enforcement of IP rights; and
(d) automation of administrative processes of IP authority in order to enhance its efficiency. Note: Information provided from a Party to the other Party pursuant to this Article shall not include information regarding individual cases of infringement of intellectual property rights so as not to be used by the receiving Party in criminal proceedings carried out by a court or a judge.
Article 145. Cooperation In the Field of Agriculture
1. The Parties, recognizing that the development in the field of agriculture in both Parties is of mutual interest and of economic and social importance for the rational and sustainable use of natural resources, shall cooperate in the field of agriculture. Such cooperation may include:
(a) exchange of information and data regarding experience of rural development, know-how of financial assistance to farmers and the agricultural cooperatives system;
(b) encouragement of dialogues and exchange of information between entities other than the Governments of the Parties concerning agriculture; and
(c) encouragement of joint scientific and technological research in agriculture including new technologies.
2. For the purposes of the effective implementation and operation of this Article, a Sub-Committee on Cooperation in the Field of Agriculture (hereinafter referred to in this Article as "the Sub-Committee") shall be established pursuant to Article 165.
3. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Article;
(b) discussing any issues related to this Article;
(c) reporting the findings of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions which may be delegated by the Joint Committee pursuant to Article 165.
Article 146. Cooperation In the Field of Tourism
1. The Parties, recognizing that tourism will contribute to the enhancement of mutual understanding between them and that tourism is an important industry for their economies, shall cooperate to promote and develop tourism in the Parties. Such cooperation may include:
(a) exchange of information on:
(i) activities and policies, including best practices, concerning market research, sustainable development of tourism and the strengthening of the competitiveness of the tourism industry; and
(ii) laws, regulations and statistics on tourism;
(b) provision of appropriate assistance for tourism promotion campaigns;
(c) encouragement of cooperation between entities other than the Governments of the Parties concerning the promotion and development of tourism; and
(d) encouragement of training of persons engaged in the tourism industry.
2. For the purposes of the effective implementation and operation of this Article, a Sub-Committee on Cooperation in the Field of Tourism (hereinafter referred to in this Article as "the Sub-Committee") shall be established pursuant to Article 165.
3. The functions of the Sub-Committee shall be:
(a) reviewing the implementation and operation of this Article;
(b) discussing any issues related to this Article;
(c) reporting the findings of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions which may be delegated by the Joint Committee pursuant to Article 165.
Article 147. Cooperation In the Field of Environment
1. The Parties, recognizing the need for environmental preservation and improvement to promote sound and sustainable development, shall cooperate in the field of environment. Cooperative activities under this Article may include:
(a) exchange of information on policies, laws, regulations and technology related to the preservation and improvement of the environment, and the implementation of sustainable development;
(b) promotion of capacity and institutional building to foster activities related with the Clean Development Mechanism under the Kyoto Protocol to the United Nations Framework Convention on Climate Change, as may be amended, by means of workshops and dispatch of experts, and exploration of appropriate ways to encourage the implementation of the Clean Development Mechanism projects;
(c) encouragement of trade and dissemination of environmentally sound goods and services; and
(d) encouraging the exchange of information for the identification of investment opportunities and the promotion and development of business alliances in the field of environment.
2. Implementing arrangements setting forth the details and procedures of cooperative activities under this Article may be made between the government agencies of the Parties.
Article 148. Non-application of Chapter 15
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Chapter.
Article 149. Relation to other Agreements
1. The Agreement between the Government of Japan and the Government of the United Mexican States concerning Cooperation in the Field of Tourism signed in Tokyo, on November 1, 1978 shall expire upon the date of entry into force of this Agreement.
2. It is confirmed by both Parties that nothing in this Chapter prejudices the rights and obligations of the Parties under the Agreement on Technical Cooperation between the Government of Japan and the Government of the United Mexican States signed in Tokyo, on December 2, 1986,as may be amended.
Chapter 15. Dispute Settlement
Article 150. Scope and Coverage
Except as otherwise provided for in this Agreement, this Chapter shall apply with respect to the settlement of all disputes between the Parties regarding the interpretation or application of this Agreement.
Article 151. Choice of Dispute Settlement Procedure
1. Nothing in this Chapter shall prejudice any rights of the Parties to have recourse to dispute settlement procedures available under any other international agreement to which both Parties are parties.
2. Notwithstanding paragraph 1 above, once a dispute settlement procedure has been initiated under this Chapter or under any other international agreement to which both Parties are parties with respect to a particular dispute,that procedure shall be used to the exclusion of any other procedure for that particular dispute. However, this does not apply if substantially separate and distinct rights or obligations under different international agreements are in dispute.
3. For the purposes of paragraph 2 above, a dispute settlement procedure under this Chapter shall be deemed to be initiated by a Party's request for the establishment ofan arbitral tribunal pursuant to paragraph 1 of Article 153.
4. For the purposes of paragraph 2 above, a dispute settlement procedure under the WTO Agreement shall be deemed to be initiated by a Party's request for the establishment of a panel pursuant to Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement, as may be amended.
Article 152. Consultations
1. Each Party may request in writing consultations with the other Party regarding any matter on the interpretation or application of this Agreement.
2. When a Party requests consultations pursuant to paragraph 1 above, the other Party shall reply to the request and enter into consultations in good faith within30 days after the date of receipt of the request, with a view to a prompt and satisfactory resolution of the matter. In a case of consultations regarding perishable goods, the requested Party shall enter into consultations within 15 days after the date of receipt of the request.
Article 153. Establishment of Arbitral Tribunals
1. The complaining Party that requested consultations under Article 152 above may request in writing the establishment of an arbitral tribunal to the Party complained against:
(a) if the Party complained against does not enter into such consultations within 30 days after the date of its receipt of the request for consultations under that Article; or
(b) if the Parties fail to resolve the dispute through such consultations under that Article within 60 days after the date of receipt of the request for such consultations, provided that the complaining Party considers that any benefit accruing to it directly or indirectly under this Agreement is being nullified or impaired as a result of the failure of the Party complained against to carry out its obligations, or as a result of the application by the Party complained against of measures which are in conflict with the obligations of that Party, under this Agreement.
2. Any request for the establishment of an arbitral tribunal pursuant to this Article shall identify:
(a) the legal basis of the complaint, including the provisions of this Agreement alleged to have been breached and any other relevant provisions; and
(b) the factual basis for the complaint.
3. The arbitral tribunal shall comprise 3 arbitrators.
4. Each Party shall, within 30 days after the date of receipt of the request for the establishment of an arbitral tribunal, appoint one arbitrator who may be its national and propose up to 3 candidates to serve as the third arbitrator who shall be the chair of the arbitral tribunal. The third arbitrator shall not be a national of either Party, nor have his or her usual place of residence in either Party, nor be employed by either Party.
5. The Parties shall agree on and appoint the third arbitrator within 45 days after the date of receipt of the request for the establishment of an arbitral tribunal, taking into account the candidates proposed pursuant to paragraph 4 above.
6. If a Party has not appointed one arbitrator pursuant to paragraph 4 above or if the Parties fail to agree on and appoint the third arbitrator pursuant to paragraph 5 above, such arbitrator or such third arbitrator shall be chosen by lot within further 7 days from the candidates proposed pursuant to paragraph 4 above.
7. The date of the establishment of an arbitral tribunal shall be the date on which the chair is appointed.
8. Unless the Parties otherwise agree within 20 days from the date of receipt of the request for the establishment of the arbitral tribunal, the terms of reference of such arbitral tribunal 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 arbitral tribunal pursuant to this Article, to rule on the consistency of the measures at issue with this Agreement, and, where the arbitral tribunal reaches the conclusion that the measure is inconsistent with this Agreement, to make recommendations that the Party complainedagainst bring the measure into conformity with this Agreement. When making recommendations, the arbitral tribunal may not suggest specific ways in which the Party complained against could implement there commendations."
9. The Parties shall promptly deliver the terms of reference pursuant to paragraph 8 above to the arbitral tribunal.
10. If an arbitrator dies, withdraws or is removed, are placement shall be appointed within 30 days in accordance with the appointment procedure provided for in paragraphs 4to 6 above, which shall be applied, respectively, mutatis mutandis. In such a case, any time period applicable to the arbitral tribunal proceeding shall be suspended for a period beginning on the date the arbitrator dies, withdraws or is removed and ending on the date the replacement is appointed.
Article 154. Award of Arbitral Tribunals
1. The arbitral tribunal shall meet in closed session.
2. The deliberations of the arbitral tribunal, the documents submitted to it and the draft award referred to in paragraph 4 below shall be kept confidential.
3. Nothing in this Chapter shall preclude a Party from disclosing statements of its own position to the public.Each Party shall treat as confidential, information submitted by the other Party to the arbitral tribunal which that other Party has designated as confidential. A Party shall also, upon request of the other Party, provide a non-confidential summary of the information contained in its written submissions that could be disclosed to the public.
4. The arbitral tribunal shall, within 90 days after the date of its establishment, submit to the Parties its draft award, including both descriptive part and its findings and conclusions, for the purposes of enabling the Parties to review precise aspects of the draft award. When the arbitral tribunal considers that it cannot submit to the Parties its draft award within the aforementioned 90 day period, it may extend that period with the consent of the Parties. However, in no case should the period from the establishment of the arbitral tribunal to the submission of the draft award to the Parties exceed 150 days. A Party may submit comments in writing to the arbitral tribunal on the draft award within 15 days after the date of the submission of the draft award.
5. The arbitral tribunal shall issue its award within 30 days after the date of the submission of the draft award.
6. In the case that the matters referred to the arbitral tribunal are those concerning perishable goods, the arbitral tribunal shall make every effort to issue its award to the Parties within 90 days after the date of its establishment. In no case should it do so later than 120 days.
7. The arbitral tribunal shall take its decisions including its award by majority vote.
8. The award of the arbitral tribunal shall be final and binding on the Parties.
Article 155. Termination of Proceedings of the Arbitral Tribunal
While the proceedings of the arbitral tribunal are in progress, the Parties may agree to terminate the proceedings at any time by jointly so notifying the chair of the arbitral tribunal.
Article 156. Implementation of Award
1. The Party complained against shall promptly comply with the award of the arbitral tribunal issued pursuant to Article 154.
2. The Party complained against shall, within 20 days after the date of issuance of the award, notify the complaining Party of the period of time for implementing the award. If the complaining Party considers the period of time notified to be unacceptable, it may refer the matter to an arbitral tribunal.
3. If the Party complained against fails to comply with the award within the implementation period as determined pursuant to paragraph 2 above, the Party complained against shall no later than the expiry of that implementation period enter into consultations with the complaining Party, with a view to developing mutually acceptable compensation. If no satisfactory compensation has been agreed within 20 days after the date of expiry of that implementation period, the complaining Party may notify the Party complained against that it intends to suspend the application to the Party complained against of concessions or other obligations under this Agreement.
4. If the complaining Party considers that measures taken by the Party complained against for implementing the award do not comply with the award within the implementation period as determined pursuant to paragraph 2 above, it may refer the matter to an arbitral tribunal.
5. If the arbitral tribunal to which the matter is referred pursuant to paragraph 4 above confirms that the Party complained against has failed to comply with the award within the implementation period as determined pursuant to paragraph 2 above, the complaining Party may, within 30 days after the date of such confirmation by the arbitral tribunal, notify the Party complained against that it intends to suspend the application to the Party complained against of concessions or other obligations under this Agreement.
6. Suspension of the application of concessions or other obligations under paragraphs 3 and 5 above may only be implemented at least 30 days after the date of the notification in accordance with those paragraphs.
Such suspension shall:
(a) not be effected if, in respect of the dispute to which the suspension relates, consultations, or proceedings before an arbitral tribunal are in progress;
(b) be temporary, and be discontinued when the Parties reach a mutually satisfactory resolution or where compliance with the award is effected;
(c) be restricted to the same level of nullification or impairment that is attributable to the failure to comply with the award; and
(d) be restricted to the same sector or sectors to which the nullification or impairment relates, unless it is not practicable or effective to suspend the application of concessions or other obligations in such sector or sectors.
7. If the Party complained against considers that the requirements for the suspension of the application to it of concessions or other obligations under this Agreement by the complaining Party set out in paragraph 3, 5 or 6 above have not been met, it may refer the matter to an arbitral tribunal.
8. The arbitral tribunal that is established for the purposes of this Article shall, wherever possible, have as its arbitrators, the arbitrators to the original arbitral tribunal. If this is not possible, then the arbitrators to the arbitral tribunal that is established for the purposes of this Article shall be appointed pursuant to paragraphs 4to 6 of Article 153. Unless the Parties agree to a different period, such arbitral tribunal shall issue its award within 30 days after the date when the matter is referred to it. The award of the arbitral tribunal established under this Article shall be binding on the Parties.
Article 157. Modification of Time Periods
Any time period provided for in this Chapter may be modified by mutual consent of the Parties.
Article 158. Expenses
Unless the Parties agree otherwise, the expenses of the arbitral tribunal, including the remuneration of its arbitrators, shall be borne by the Parties in equal shares.
Article 159. Rules of Procedure
Unless the Parties agree otherwise, the details and procedures for the arbitral tribunal provided for in this Chapter shall be in accordance with the Rules of Procedure to be adopted by the Joint Committee within the first year of the date of entry into force of this Agreement.
Chapter 16. Implementation and Operation of the Agreement
Article 160. Transparency
1. Each Party shall promptly publish, or otherwise make publicly available, its laws, regulations, administrative procedures and administrative rulings and judicial decisions of general application as well as international agreements to which the Party is a party, respecting any matter covered by this Agreement.
2. Each Party shall, upon request by the other Party, promptly respond to specific questions from, and provide information to, the other Party with respect to matters referred to in paragraph 1 above.
3. Nothing in this Article shall prejudice as to whether a measure adopted by a Party is consistent with this Agreement.
Article 161. Public Comment Procedures
The Government of each Party shall, in accordance with the domestic laws and regulations of the Party, endeavor to maintain public comment procedures, except in cases of emergency, inter alia, a real or imminent danger to the health, safety, or welfare of persons, to the preservation of the environment or to the conservation of exhaustible natural resources, in order to:
(a) make public in advance regulations of general application that affect any matter covered by this Agreement, accompanied by an explanation of their rationale and potential effects, when the Government adopts, amends or repeals them;
(b) provide a reasonable opportunity for comments by the public and give consideration to those comments before the adoption of such regulations;and
(c) make public those comments. Where appropriate, those comments should be compiled and accompanied by the views of the Government on them.
Article 162. Administrative Proceedings
1. Where measures are to be adopted which pertain to or affect the implementation and operation of this Agreement, the competent authorities of a Party shall, in accordance with the domestic laws and regulations of the Party:
(a) inform the applicant of the decision concerning the application within a reasonable period of time after the submission of an application considered complete under the domestic laws and regulations of the Party; and
(b) provide, without undue delay, information concerning the status of the application, at the request of the applicant.
2. Where measures are to be adopted by the competent authorities of a Party which pertain to or affect the implementation and operation of this Agreement and which impose obligations on or restrict rights of a person, such competent authorities shall, prior to any final decision, when time, the nature of the measures and public interest permit and in accordance with the domestic laws and regulations of the Party, provide that person with: (a) a reasonable notice, including a description of the nature of the measure, specific provisions upon which such measure will be based, and the facts which may be a cause of taking such measure; and
(b) a reasonable opportunity to present facts and arguments in support of the position of such person.
Article 163. Review and Appeal
1. Each Party shall maintain judicial or administrative tribunals or procedures for the purpose of prompt review and, where warranted, correction of administrative actions regarding matters covered by this Agreement. Such tribunals or procedures shall be impartial and independent of the authorities entrusted with the administrative enforcement.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic laws and regulations, that such decisions are implemented by the competent authorities of the Party with respect to the administrative action at issue.
Article 164. Confidential Information
1. Unless otherwise provided for in this Agreement, neither Party shall be required by this Agreement to provide confidential information, the disclosure of which would impede the enforcement of its domestic laws and regulations, including the law protecting the information relating to personal privacy or the financial affairs or accounts of individual customers of financial institutions, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.
2. Each Party shall, in accordance with its domestic laws and regulations, maintain the confidentiality of information provided in confidence by the other Party pursuant to this Agreement.
Article 165. Joint Committee
1. The Joint Committee composed of representatives of the Governments of the Parties shall be established under this Agreement.
2. The functions of the Joint Committee shall be:
(a) reviewing the implementation and operation of this Agreement and, when necessary, making appropriate recommendations to the Parties;
(b) considering and recommending to the Parties any amendments to this Agreement;
(c) by mutual consent of the Parties, serving as a forum for consultations referred to in Article 152;
(d) supervising the work of all Sub-Committe esestablished under this Agreement;
(e) adopting:
(i) modifications to Annexes referred to in Articles 8 and 37;
(ii) the Uniform Regulations referred to in Article 10;
(iii) an interpretation of a provision of this Agreement referred to in Articles 84 and 89;
(iv) the Rules of Procedure referred to in Article 159; and
(v) any necessary decisions; and
(f) carrying out other functions as the Parties may agree.
3. The Joint Committee may:
(a) establish and delegate its responsibilities to Sub-Committees for the purposes of the effective implementation and operation of this Agreement;and
(b) take such other action in the exercise of its functions as the Parties may agree.
4. The following Sub-Committees shall be established on the date of entry into force of this Agreement:
(a) Sub-Committee on Trade in Goods.
(b) Sub-Committee on Sanitary and Phytosanitary Measures.
(c) Sub-Committee on Technical Regulations, Standards and Conformity Assessment Procedures.
(d) Sub-Committee on Rules of Origin, Certificate of Origin and Customs Procedures.
(e) Sub-Committee on Cross-Border Trade in Services.
(f) Sub-Committee on Entry and Temporary Stay.
(g) Sub-Committee on Government Procurement.
(h) Sub-Committee on Cooperation in the Field of Trade and Investment Promotion.
(i) Sub-Committee on Cooperation in the Field of Agriculture.
(j) Sub-Committee on Cooperation in the Field of Tourism. Other Sub-Committees may be established as the Parties may agree.
5. The Joint Committee shall establish its rules and procedures.
6. The Joint Committee shall meet alternately in Japan and Mexico at the request of either Party.
Article 166. Communications
Each Party shall designate a contact point to facilitate communications between the Parties on any matter relating to this Agreement.
Article 167. Relation to other Agreements
1. The Parties reaffirm their rights and obligations under the WTO Agreement.
2. Nothing in Chapters 3, 7 and 8 shall be construed to prevent either Party from taking any necessary action as may be authorized by Article 22 of the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement, as may be amended.
3. The Convention on Commerce between Japan and the United Mexican States signed at Tokyo on January 30, 1969shall expire upon the date of entry into force of this Agreement.
Chapter 17. Exceptions
Article 168. General Exceptions
1. For the purposes of Chapters 3, 4, 5, and 6, Article XX of the GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis.
2. For the purposes of Chapters 8 and 10, paragraphs (a), (b) and (c) of Article XIV of the GATS are incorporated into and made part of this Agreement, mutatis mutandis.
Article 169. National Security
For the purposes of Chapters 3, 4, 5, 6, 7, 8, 10 and16, nothing in this Agreement shall be construed:
(a) to require a Party to furnish or allow access to any information the disclosure of which it considers contrary to its essential security interests;
(b) to prevent a Party from taking any action that it considers necessary for the protection of its essential security interests:
(i) relating to the traffic in arms, ammunition and implements of war and to such traffic and transactions in other goods, materials or services undertaken directly or indirectly for the purpose of supplying a military or other security establishment,
(ii) taken in time of war or other emergency in international relations, or
(iii) relating to the implementation of national policies or international agreements respecting the non-proliferation of nuclear weapons or other nuclear explosive devices,or relating to fissionable and fusionable materials or the materials from which they are derived; or
(c) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter, as may be amended, for the maintenance of international peace and security.
Article 170. Taxation
1. Except as otherwise provided for in this Article, nothing in this Agreement shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of either Party under any tax convention. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency. Note: The term "tax convention" means a convention for the avoidance of double taxation or other international taxation agreement or arrangement.
3. Notwithstanding paragraph 2 above:
(a) Article 3 shall apply to taxation measures to the same extent as does Article III of the GATT 1994;and
(b) Article 6 shall apply to taxation measures.
4. (a) Article 61 shall apply to taxation measures except that no investor may invoke that Article as the basis for a claim under Article 76, where it has been determined pursuant to subparagraph (b) below that the measure is not an expropriation.
(b) The investor shall refer the issue, at the time that it gives a written request under Article 78,to the competent authorities of both Parties to determine whether such measure is not an expropriation. If the competent authorities of both Parties do not consider the issue or, having considered it, fail to determine that the measure is not an expropriation within a period of 180 days of such referral, the investor may submit its claim to arbitration under Article 79.
(c) For the purposes of subparagraph (b) above, the term "competent authorities" means:
(i) in the case of Mexico, the Ministry of Finance and Public Credit; and
(ii) in the case of Japan, the Minister of Finance or his authorized representative.
Article 171. Payments and Transfers and Restrictions to Safeguard the Balance of Payments
1. For the purposes of Chapter 3:
(a) nothing in this Agreement shall be construed to prevent a Party from taking any measure for balance-of-payments purposes;
(b) a Party taking such measure shall do so in accordance with the conditions established under Article XII of the GATT 1994, and the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, as may be amended; and
(c) nothing in this Agreement shall preclude the use by a Party of exchange controls or exchange restrictions in accordance with the Articles of Agreement of the International Monetary Fund, as may be amended.
2. For the purposes of Chapter 8:
(a) except under the circumstances envisaged in subparagraph (d) below, a Party shall not apply restrictions on international transfers and payments for current transactions relating to cross-border trade in services under Chapter 8;
(b) nothing in this Agreement shall affect the rights and obligations of the Parties as members of the International Monetary Fund under the Articles of Agreement of the International Monetary Fund, as may be amended, including the use of exchange actions which are in conformity with the Articles of Agreement of the International Monetary Fund,as may be amended;
(c) notwithstanding subparagraph (b) above, a Party shall not impose restrictions on any capital transactions inconsistently with its obligations regarding such transactions under Chapter 8except under subparagraph (d) below or at the request of the International Monetary Fund;
(d) in the event of serious balance-of-payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services, including on payments or transfers for transactions;
(e) the restrictions referred to in subparagraph (d)above: (i) shall ensure that the other Party is treated as favorably as any non-Party; (ii) shall be consistent with the Articles of Agreement of the International Monetary Fund, as may be amended; (iii) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party; (iv) shall not exceed those necessary to deal with the circumstances described in subparagraph (d) above; and
(v) shall be temporary and be phased out progressively as the situation specified in subparagraph (d) above improves;
(f) in determining the incidence of such restrictions referred to in subparagraph (d) above, a Party may give priority to the supply of services which are more essential to their economic or development programs. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector; and
(g) any restrictions adopted or maintained under subparagraph (d) above, or any changes therein, shall be promptly notified to the other Party.
Chapter 18. Final Provisions
Article 172. Table of Contents and Headings
The table of contents and the headings of the Chapters, Sections and Articles of this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement.
Article 173. Annexes and Notes
The Annexes and Notes to this Agreement shall constitute an integral part of this Agreement.
Article 174. Amendment
1. Unless otherwise provided for in this Agreement, this Agreement may be amended by agreement between the Parties. Such amendment shall be approved by the Parties in accordance with their respective legal procedures. Such amendment shall enter into force on the thirtieth day after the date of exchange of diplomatic notes indicating such approval. 2. Any amendment to this Agreement shall constitute an integral part of this Agreement.
Article 175. Entry Into Force
This Agreement shall enter into force on the thirtieth day after the date on which the Government of Japan and the Government of Mexico exchange diplomatic notes informing each other that their respective legal procedures necessary for entry into force of this Agreement have been completed. It shall remain in force unless terminated as provided for in Article 176 below.
Article 176. Termination
Either Party may terminate this Agreement by giving one year's advance notice in writing to the other Party.
Article 177. Authentic Texts
1. The texts of this Agreement in the Japanese, Spanish and English languages shall be equally authentic. In case of differences of interpretation, the English text shall prevail.
2. Notwithstanding paragraph 1 above:
(a) Section 2 of Annex 1 is written in the Japanese and English languages, such texts being equally authentic; and (b) Section 3 of Annex 1 is written in the Spanish and English languages, such texts being equally authentic.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement. DONE at Mexico City, on this seventeenth day of September, 2004, in duplicate.
For Japan: Junichiro Koizumi
For the United Mexican States:Vicente Fox Quesada