a) consider or consult on any particular matter relating to standardization measures that may affect trade between the Parties;
b) define and facilitate the compatibility process of its standardization measures;
c) facilitate the process of negotiating mutual recognition agreements;
d) discuss any other related matters.
2. For the purposes of this article, the authorities in charge of coordinating the bilateral meetings shall be those indicated in Annex 9-10.
3. When a Party has doubts about any measure related to the standardization of the other Party, such Party may tum to the other Party, through its competent authorities, in order to obtain information, clarification and/or advice in this respect.
Chapter X. CROSS-BORDER TRADE IN SERVICES
Article 10-01. Definitions.
For the purposes of this chapter, the following definitions shall apply:
services: any service in any sector within each Party's classification of use, except services supplied in the exercise of governmental authority;
services supplied in the exercise of governmental authority: any service that is supplied neither on a commercial basis nor in competition with one or more service suppliers;
company: means a "company" as defined in Article 2-01 (General Definitions), and the branch of a company;
enterprise of a Party: an enterprise incorporated or organized under the laws of a Party, including branches located in the territory of a Party and carrying out economic activities in that territory;
cross-border trade in services or cross-border provision of a service: the provision of a service.
a) from the territory of one Party to the territory of another Party;
b) in the territory of a Party, by persons of that Party, to persons of another Party; or
c) by a national of a Party in the territory of another Party, but does not include the supply of a service in the territory of a Party through an investment, as defined in Article 13-01 (Definitions), in that territory; service supplier of a Party: a person of the Party who intends to supply or does supply a service; quantitative restriction: a non-discriminatory measure that imposes limitations on:
a) the number of service providers, either through a quota, monopoly or economic necessity test or by any other quantitative means; or
b) the operations of any service provider, either through a fee or a proof of economic need, or by any other quantitative means;
specialized aerial services: aerial mapping; aerial surveying; aerial photography; aerial photography; forest fire control; firefighting; aerial advertising; glider towing; parachuting services; construction aerial services; aerial log transport; scenic flights; training flights; aerial inspection and surveillance; and aerial spraying. professional services: subject to the legislation of each Party, the performance for remuneration or free of charge of any act or the rendering of any service proper to each profession and the professional exercise of which is authorized or restricted by a Party, but does not include services rendered by persons practicing a trade or to crew members of merchant ships and aircraft.
Article 10-02. Scope of Application.
1. This Chapter refers to measures that a Party adopts or maintains that affect cross-border trade in services, including those relating to:
a} the production, distribution, marketing, sale and provision of a service;
b) the purchase, use or payment of a service;
c) access to and use of services offered to the general public in connection with the provision of a service;
d) the presence in its territory of a service provider of the other Party; and
e) the provision of a bond or other form of financial guarantee as a condition for the provision of a service.
2. This chapter does not refer to:
a) financial services,
b) air services, including domestic and international air transport services, scheduled and non-scheduled, as well as ancillary activities in support of air services, except:
i. aircraft repair and maintenance services during the period in which an aircraft is removed from service;
ii. specialized air services;
iii, the sale and marketing of air transportation services; and
iv. computerized reservation services;
c) government purchases made by a Party or government enterprise; or to
d) subsidies or grants provided by a Party or a state enterprise, including government-supported loans, guarantees and insurance. The Parties shall take into account the results of the treatment of this issue in the WTO Working Party on GATS Rules in the framework of the Doha round.
3. Nothing in this chapter shall be construed to mean:
a) impose any obligation on a Party with respect to a national of another Party seeking to enter its labor market or to have permanent employment in its territory, or to confer any right on such a national, with respect to such access or employment; or
b) prevent a Party from providing services or performing functions such as the enforcement of laws and services relating to social rehabilitation, pension or unemployment insurance or social security services, social welfare, public education, public training, health and child protection, when performed in a manner not inconsistent with this Chapter.
Article 10-03. National Treatment.
1. Each Party shall accord to services and service suppliers of the other Party, with respect to all measures affecting the supply of services, treatment no less favorable than that it accords, in like circumstances, to its service suppliers.
2. Treatment accorded by a Party under paragraph 1 means, with respect to a state or department, treatment no less favorable than the most favorable treatment accorded by that state or department, in like circumstances, to services or service suppliers of the Party to which it belongs.
3. The provisions of paragraph 1 do not require the Parties to compensate for inherent competitive disadvantages resulting from the foreign character of the relevant services or service suppliers.
Article 10-04. Most Favored Nation Treatment.
Each Party shall accord immediately and unconditionally to services and service suppliers of the other Party treatment no less favorable than that it accords, in like circumstances, to services and service suppliers of a non- Party.
Article 10-05. Local Presence.
No Party shall require a service supplier of the other Party to establish or maintain a representative office or any type of enterprise, or to be resident in its territory as a condition for the cross-border supply of a service.
Article 10-06. Reservations and Exceptions.
1. Articles 10-03, 10-04 and 10-05 shall not apply to:
a) Any existing non-conforming measure adopted or maintained by:
i. a Party at the national or federal, or state or departmental level, as appropriate, as set forth in its list in Annex I (Reservations and Exceptions), or
ii. a municipal govemment; nor to
b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph a);
c) the amendment of any non-conforming measure referred to in subparagraph (a), provided that such amendment or renewal does not diminish the degree of conformity of the measure, as in effect immediately prior to the amendment, with articles 10-03, 10-04 and 10-05.
2. Upon entry into force of this Agreement, no Party shall increase the degree of non-conformity of its existing measures with respect to Articles 10-03, 10-04 and 10-05. The Parties shall list their non-conforming measures in Annex I (Reservations and Exceptions), which shall be completed by the Parties no later than one year after the entry into force of this Agreement.
Article 10-07. Non-discriminatory Quantitative Restrictions.
1. Each Party shall indicate in its Schedule to Annex Il (Non-Discriminatory Quantitative Restrictions), within one year of the entry into force of this Agreement, any quantitative restrictions it maintains at the national or federal and state or departmental levels.
2. Each Party shall notify the other Party of any quantitative restrictions, other than those at the local government level, that it adopts after the date of entry into force of this Agreement, and shall indicate the restriction in its Schedule to Annex II (Non-Discriminatory Quantitative Restrictions).
3. The Parties shall endeavor periodically, but in any event at least every two (2) years, to negotiate the liberalization or removal of the quantitative restrictions indicated in their list in Annex II (Non-Discriminatory Quantitative Restrictions), in accordance with the provisions of paragraphs 1 and 2.
Article 10-08. Future Liberalization.
In order to achieve a level of progressive liberalization, the Commission may convene negotiations aimed at eliminating the remaining restrictions registered in accordance with article 10-06.
Article 10-09. Procedures.
The Commission shall establish procedures for:
a) that a Party notifies to the other Parties and includes in its relevant list:
i. quantitative restrictions, in accordance with article 10-07;
ii. amendments or renewals to measures referred to in Article 10-06 (1)(b); and
b) consultations on reservations, quantitative restrictions or commitments, with a view to achieving greater liberalization.
Article 10-10. National Regulations.
1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Each Party shall have the right to regulate the supply of services in its territory, and to establish new regulations in this respect, in order to achieve its domestic policy objectives, including pro-competitive and consumer protection regulations.
Article 10-11. Granting of Licenses and Certificates.
1. When a license, registration, certificate or other type of authorization is required for the provision of a service, the competent authorities of the Party concerned shall, within a reasonable period of time after the submission of an application:
a) decide on the application, informing the interested party when the application is complete; or b) inform the interested party, when the application is not complete, without unnecessary delay, of the status of the application, as well as of any additional information required under the law of the other Party.
2. In order to ensure that any measures that a Party adopts or maintains with respect to licensing or certification requirements and procedures for nationals of the other Party do not constitute an unnecessary barrier to trade, each Party shall endeavor to ensure that such measures:
a) are based on objective and transparent criteria, such as capacity and suitability to provide a service;
b) are not more burdensome than necessary to ensure the quality of a service; and
c) do not constitute a disguised restriction on the cross-border provision of a service.
3. When a Party recognizes, unilaterally or by agreement with another non-Party, education, experience, licenses or certificates obtained in the territory of the other Party or of any non-Party:
a) nothing in Article 10-04 shall be construed to require that Party to recognize education, experience, licenses or certificates obtained in the territory of the other Party; and
b) the Party shall provide the other Party with adequate opportunity to demonstrate that education, experience, licenses or certificates obtained in the territory of that other Party shall also be recognized, or to enter into an arrangement or agreement having equivalent effect.
4. Each Party shall, within 2 (two) years of the date of entry into force of this Agreement, eliminate any nationality or permanent residence requirement, as indicated in its Schedule to Annex | (Reservations and Exceptions), that it maintains for the licensing or certification of professional service suppliers of the other Party. Where a Party fails to comply with this obligation with respect to a particular sector, the other Party may, in the same sector and for as long as the non-complying Party maintains its requirement, maintain, as the sole remedy, an equivalent requirement indicated in its Schedule to Annex I (Reservations and Exceptions) or reinstate:
a) any such requirements at the federal level that it has eliminated pursuant to this article; or
b) by notification to the non-complying Party, any such state-level requirements that had been in existence on the date of entry into force of this Agreement.
5. The Parties shall consult with each other periodically with a view to examining the possibility of eliminating the remaining nationality or permanent residence requirements for the granting of licenses or certificates to service providers of each Party. 6. Annex 10-11(6} applies to measures adopted or maintained by a Party relating to the licensing or certification of professional service suppliers.
Article 10-12. Denial of Benefits.
Upon notification and consultation in accordance with Articles 16-03 (Notification and Provision of Information), and 18-03 (Consultations), a Party may deny the benefits of this Chapter to a service supplier of the other Party, where the Party determines that the service is being supplied by an enterprise that is not engaged in substantive business operations in the territory of either Party, and that is owned or controlled by persons of a non-Party.
ANNEXES: The following Annexes were agreed upon:
Annex I Reserves and Exceptions
Annex lI Non-Discriminatory Quantitative Restrictions
Annex III Exemptions to the Most-Favored-Nation Clause
Annex IV Activities Reserved to the State
Chapter XI. TELECOMMUNICATIONS
Article 11-01. Definitions.
For the purposes of this chapter, the following definitions shall apply: intracorporate communications: the telecommunications through which a company communicates:
a) internally, with its subsidiaries, branches and affiliates, or among themselves, as defined by each Party; or
b) in a non-commercial manner and subject to the applicable laws of each Party, with all persons of fundamental importance to the economic activity of the company, and who have an ongoing contractual relationship with it;
but does not include telecommunications services supplied to persons other than those described in this definition;
authorized equipment: terminal or other equipment that has been approved for connection to the public telecommunications network in accordance with the conformity assessment procedures of the Party where it is installed;
terminal equipment: any digital or analog device capable of processing, receiving, switching, signaling or transmitting signals by electromagnetic means and which is connected to the public telecommunications network, by means of radio or cable connections, at a terminal point;
standardization-related measures: "standardization-related measures"&s defined in Article 9-01 (Definitions);
conformity assessment procedure: "conformity assessment procedure" as defined in Article 9-01 (Definitions);
protocol: a set of rules and formats governing the exchange of information between two peer entities for the purpose of transferring signal or data information;
dominant supplier or operator: a supplier or operator that has the ability to significantly affect the conditions of participation (in terms of pricing and supply) in a given market for telecommunications services as a result of control of essential facilities or use of its market position;
network terminal point: the final demarcation of the public telecommunications network at the user's premises;
private telecommunications network: the internal telecommunications network of a company or between individuals, to meet its own telecommunications needs, without marketing any service to third parties;
public telecommunications network: the telecommunications network used for the commercial operation of telecommunications services intended to meet the needs of the general public, not including users' telecommunications terminal equipment or private telecommunications networks beyond the terminal point of the network;
enhanced or value-added services: telecommunication services using computerized processing systems that:
a) act on the format, content, code, protocol or similar aspects of the information transmitted from the user (4);
b) provide the customer with additional, different or restructured information, or
c) involve user interaction with stored information;
telecommunications service: any telecommunications service that a Party explicitly or de facto mandates to be offered to the general public, including telegraph, telephone, telex and data transmission, and that generally involves the real-time transmission of customer-supplied information between two or more points, with no "point- to-point" change in the form or content of the user's information; and
telecommunication: any transmission, emission, reception of signs, signals, writings, images, sounds and information of any nature, by wire, radioelectricity, optical means or other electromagnetic systems.
Article 11-02. Scope of Application and Extent of Obligations.
1. Recognizing the dual role of telecommunication services, both as a specific sector of economic activity and as a means of providing services for other economic activities, this chapter applies to:
a) measures adopted or maintained by a Party relating to access to and continued use of public networks or telecommunications services by persons of another Party, including their access to and use when operating private networks to carry out intracorporate communications;
b) measures adopted or maintained by a Party on the supply of value-added or enhanced services by persons of another Party in the territory of the former Party or across its borders; and
c) measures relating to standardization with respect to connection of terminal or other equipment to public telecommunications networks.
2. Except to ensure that persons operating broadcasting stations and cable systems have continued access to and use of public networks and telecommunications services, this Chapter does not apply to any measure that a Party adopts or maintains relating to the broadcasting or cable distribution of radio or television programming.
3. Nothing in this chapter shall be construed to mean:
a) oblige any Party to authorize a person of another Party to establish, construct, acquire, lease, operate or supply telecommunications networks or services;
b) to compel any Party or to require any Party to require any person to establish, construct, acquire, lease, operate or supply public telecommunications networks or services that are not offered to the general public;
c) prevent any Party from prohibiting persons operating private networks from using such networks to provide public networks or telecommunications services to third parties; or
d) oblige a Party to require any person engaged in the broadcasting or cable distribution of radio or television programming to provide its cable distribution or broadcasting infrastructure as a public telecommunications network.
Article 11-03. Access to and Use of Public Networks and Telecommunication Services.
1. Each Party shall ensure that any person of the other Party has access to and may make use of any public telecommunications network or service, as well as private leased circuits, offered in its territory or on a cross- border basis on reasonable and non-discriminatory terms and conditions, for the conduct of its business, as specified in paragraphs 2 through 7.
2. Subject to paragraphs 6 and 7, each Party shall ensure that persons of the other Party are permitted:
a) purchase or lease and connect terminal equipment or other equipment that interfaces with the public telecommunications network;
b) interconnect private, leased or owned circuits with public telecommunications networks in the territory of that Party or with leased or owned circuits of another person, on terms and conditions mutually accepted by such persons;
c) perform switching, signaling and processing functions; and
d) use the operating protocols of their choice as long as this does not detract from the quality of service.
3. Without prejudice to the provisions of its existing legislation, each Party shall endeavor to ensure that the pricing of telecommunications services is guided by the economic costs directly related to the supply of such services.
4. Each Party shall ensure that persons of the other Party may use public networks or telecommunications services for the transmission of information in its territory or across its borders, including for intracorporate communications, and for access to information contained in databases or stored in any other machine-readable form in the territory of either Party.
5. Each Party may adopt any measure necessary to ensure the confidentiality and security of messages and the protection of the privacy of subscribers to public telecommunications networks or services.
6. Each Party shall ensure that no conditions are imposed on access to and use of public telecommunications networks or services other than those necessary to:
a) safeguarding the service responsibilities of providers of public networks or telecommunication services, in particular their ability to make their networks or services available to the general public; or
b) protect the technical integrity of public networks or telecommunications services.
7. Provided that the conditions for access to and use of public networks or telecommunications services meet the guidelines set forth in paragraph 6, such conditions may include:
a) restrictions on the resale or shared use of such services;
b) requirements to use specific technical interfaces, including interface protocols, for interconnection with the aforementioned networks or services;
c) restrictions on the interconnection of private circuits, leased or owned, with the aforementioned networks or services, or with circuits leased or owned by another person, when these are used for the supply of public networks or telecommunication services; and
d) procedures for granting licenses, permits, registrations, authorizations or notifications that, if adopted or maintained, are transparent and whose processing of applications is resolved in accordance with the time limits established in the legislation of each Party.
Article 11-04. Conditions for the Provision of Enhanced or Value-added Services.
1. Each Party shall ensure that:
a) any procedures it adopts or maintains for granting licenses, permits, registrations, authorizations or notifications concerning the supply of enhanced or value-added services are transparent and non-discriminatory and that applications are processed in accordance with the time limits established in each Party's legislation; and
b) the information required under such procedures is limited to that necessary to demonstrate that the applicant has the financial solvency to commence the provision of the service, or that the applicant's services, terminal or other equipment comply with the applicable technical standards or technical regulations of the Party.
2. Without prejudice to the provisions of its legislation in force, no Party shall require an enhanced or value-added service supplier:
a) to the general public;
b) justify their rates according to their costs;
c) register a fee;