Title
Comprehensive Economic Partnership Agreement between the United Arab Emirates and the Republic of Costa Rica
Preamble
PREAMBLE
The Governments of the United Arab Emirates (hereinafter referred to as the "UAE") and of the Republic of Costa Rica (hereinafter referred to as "Costa Rica") hereinafter referred to individually as a "Party" and collectively as "Parties";
RECOGNISING the strong economic and political ties between Costa Rica and the UAE, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic opportunities to the Parties;
DETERMINED to develop and strengthen their economic relations on trade and investment matters through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote transfer of technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic relations on trade and investment matters between the Parties;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
RECOGNIZING their inherent right to regulate and resolved to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public welfare objectives, such as health, safety, environmental protection, conservation of living or non- living exhaustible natural resources, integrity and stability of the financial system, and public morals, in accordance with the rights and obligations provided in this Agreement;
HAVE AGREED, in pursuit of the above, to conclude the following Comprehensive Economic Partnership Agreement on Trade and Investment (hereinafter referred to as "this Agreement" or "CEPA"):
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Section A. Initial Provisions
Article 1.1. Establishment of a Free Trade Area
The Parties hereby establish a free trade area, in accordance with Article XXIV of the General Agreement on Tariffs and Trade and Article V of General Agreement on Trade in Services and to promote opportunities for market access and trade liberalization for goods, services and investments; strengthen development of the digital economy; and deepen economic cooperation between the Parties.
Article 1.2. Objectives
1. The objectives, as elaborated more specifically through this Agreement, are, among others, to:
(a) encourage expansion and diversification of trade between the Parties;
(b) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;
(c) promote conditions of fair competition in the free trade area; (d) substantially increase investment opportunities in the territories of the Parties;
(e) provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory;
(f) create effective procedures for the implementation and application of this Agreement, for its joint administration, and for the resolution of disputes; and
(g) establish a framework for further bilateral, regional, and multilateral cooperation to expand and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article 1.3. Geographical Scope
This Agreement shall apply:
(a) for Costa Rica, its national territory including air and maritime space, where the State exercises complete and exclusive sovereignty or special jurisdiction in accordance with Articles 5 and 6 of the Constitution of the Republic of Costa Rica and international law; and
(b) for the UAE, its land territories, internal waters, including its Free Zones, territorial sea, including, the seabed, and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which UAE has sovereignty, sovereign rights, or jurisdiction as defined in its laws, and in accordance with international law.
Article 1.4. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which such Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
3. For greater certainty, this Agreement shall not be construed to derogate or nullify from any international legal obligation between the Parties that provides for more favorable treatment of goods, services, investments, or persons than that provided for under this Agreement.
Article 1.5. Extent of Obligations
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by the regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional, and local governments and authorities within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of the GATT 1994 and paragraph 3 of Article I of the GATS.
Article 1.6. Transparency
Each Party shall ensure that its laws, regulations, procedures, and respecting any matter covered by this Agreement, as well as their respective international agreements regarding trade and investment that may affect the operation of this Agreement, are published, or otherwise made publicly available in such a manner as the other Party to become acquainted with them.
Article 1.7. Confidential Information and Notification and Provision of Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
3. To the extent possible, each Party shall notify the other Party of any measure that the Party considers might materially affect the operation of this Agreement.
4. On request of the other Party, a Party shall with reasonable period of time, provide information and respond to questions pertaining to any measure. whether or not that other Party has been previously notified of that measure.
5. Any notification or information provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.
6. Any information, request or notification provided under this Chapter shall be provided to the other Party through the contact points established in Article 17.2 (Communications), unless otherwise established in this Agreement or subsequently agreed by the Parties.
Section B. General Definitions
Article 1.8. General Definitions
For the purposes of this Agreement:
Agreement on Agriculture means the Agreement on Agriculture contained in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A to the WTO Agreement;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A to the WTO Agreement;
days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 to the WTO Agreement;
GATS means the General Agreement on Trade in Services contained in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A to the WTO Agreement;
Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes and Subheading Notes;
Import Licensing Agreement means the Agreement on Import Licensing Procedures contained in Annex 1A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 17.1 (Joint Committee) of this Agreement;
measure means any measure, whether in form ofa law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
Safeguards Agreement means the Agreement on Safeguards contained in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures contained in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade contained in Annex 1A to the WTO Agreement;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C to the WTO Agreement;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, 15 April 1994.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
customs authority means the authority that, according to the legislation of each Party, is responsible for the administration and enforcement of customs laws and regulations of the Party. In the case of the UAE, it shall be the Federal Authority for Identity, Citizenship, Customs & Port Security and in the case of Costa Rica, the National Customs Service (Servicio Nacional de Aduanas).
customs duty refers to any duty or charge of any kind imposed in connection with the importation of a product, including any form of surtax or surcharge in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed in conformity with Article III of the GATT 1994;
(b) safeguard, anti-dumping or countervailing duty that is applied consistently with the provisions of this Agreement, Article XIX of the GATT 1994, the Safeguards Agreement, Article VI of the GATT 1994, the Anti-Dumping Agreement, and the SCM Agreement; or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered and which does not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes.
inward processing means customs procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of import duties and taxes, on the basis that such goods are intended for manufacturing, processing or repair and subsequent exportation.
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 2.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.3. National Treatment on Internal Taxation and Regulation
1. The Parties shall accord national treatment to the goods of the other Party in accordance with Article II of the GATT 1994, including its interpretative notes. To this end, Article II of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A (National Treatment and Import and Export Restrictions).
Article 2.4. Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, including as explicitly set out in each Partyâs schedule in Annex 2B (Elimination of Customs Duties), neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. Upon the entry into force of this Agreement, Costa Rica shall eliminate its customs duties applied on goods originating from the UAE in accordance with Annex 2B (Elimination of Customs Duties) and the UAE shall eliminate its customs duties on goods originating from Costa Rica in accordance with Annex 2B (Elimination of Customs Duties).
3. Where a Party reduces its most-favored-nation (hereinafter âMFNâ) applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2B (Elimination of Customs Duties).
Article 2.5. Acceleration or Improvement of Tariff Commitments
1. Upon request of a Party, the other Party shall consult with the requesting Party to consider accelerating or improving the scope of the elimination of customs duties as set out in its schedule of tariff commitments in Annex 2B (Elimination of Customs Duties).
2. Further commitments between the Parties to accelerate or improve the scope of the elimination of a customs duty on a good or to include a good in Annex 2B (Elimination of Customs Duties) shall supersede any duty rate or staging category determined pursuant to their respective Schedules upon its incorporation into this Agreement.
3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or improving the scope of the elimination of customs duties set out in its schedule in Annex 2B (Elimination of Customs Duties) on originating goods. Any such unilateral acceleration or improvement of the scope of the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to their respective Schedule nor serve to waive that Party's right to raise the customs duty back to the level established in its schedule in Annex 2B (Elimination of Customs Duties) following a unilateral reduction.
Article 2.6. Classification of Goods and Transposition of Schedules
1. The classification of goods in trade between the Parties shall be in conformity with the Harmonized Commodity Description and Coding Systems (HS) and its amendments. Each Party shall ensure consistency in applying its laws and regulations to the tariff classification of originating goods of the other Party.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annex 2B (Elimination of Customs Duties) due to periodic amendments and transposition of the HS Code.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the schedules of tariff commitments in Annex 2B (Elimination of Customs Duties) shall be carried out in accordance with the methodologies and procedures adopted by the Joint Committee.
4. Each Party shall ensure that the transposition of its schedule of tariff commitments under paragraph 3 does not afford less favourable treatment to an originating good of the other Party set out in its schedule of tariff commitments in Annex 2B (Elimination of Customs Duties).
5. A Party may introduce new tariff splits or eliminate tariff splits, as a result of the corresponding HS amendment, provided that the preferential conditions applied in the new transposition of each Partyâs schedule of tariff commitments in Annex 2B (Elimination of Customs Duties) are not less preferential than those applied originally.
Article 2.7. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A (National Treatment and Import and Export Restrictions).
Article 2.8. Import Licensing
1. Neither Party may adopt or maintain a measure that is inconsistent with the Import Licensing Agreement (1), which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. Before applying any new or modified import licensing procedure, a Party shall publish it in such a manner as to enable governments and traders to become acquainted with it, including through publication on an official government internet site. To the extent possible, that Party shall do so at least 20 days before the new procedure or modification takes effect. Upon request of the other Party, the Party shall exchange information concerning its implementation in a reasonable period.
3. Within 30 days after this Agreement enters into force, each Party shall notify the other Party of its existing import licensing procedures, if any. The notification shall:
(a) include the information specified in Article 5 of the Import Licensing Agreement; and
(b) be without prejudice as to whether the import licensing procedure is consistent with this Agreement.
Article 2.9. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of the GATT 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.10. Export Subsidies
Upon entry into force of this Agreement and in accordance with the provisions of the SCM Agreement, Agreement on Agriculture and the WTO Ministerial Conference Decision on Export Competition adopted in Nairobi on 19 December 2015, including the elimination of scheduled export subsidy entitlements for agricultural goods, neither Party shall maintain, introduce or reintroduce export subsidies or other measures with equivalent effect on any good destined for the territory of the other Party.
Article 2.11. Restrictions to Safeguard the Balance-of-Payments
1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes.
2. Any such measures taken for trade in goods shall be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the GATT 1994, the provisions of which are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.12. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VII:1 of GATT 1994 and its interpretive notes, that all fees and charges of whatever character (other than import and export duties, charges equivalent to an internal tax or other internal charges applied consistently with Article III:2 of GATT 1994, and safeguard, anti-dumping and countervailing duties) imposed on, or in connection with, importation or exportation of goods are limited in amount to the approximate cost of services rendered, and shall not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. Each Party shall promptly publish details and shall make such information available on the internet regarding the fees and charges it imposes in comnection with importation or exportation.
Article 2.13. Non-Tariff Measures
1. Neither Party shall adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except for those adopted in conformity with Article 2.7 of this Agreement, the SPS and TBT Agreements or any other WTO rules.
2. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings relating to non-tariff measures do not create unnecessary obstacles to trade with the other Party.
3. If a Party considers that a non-tariff measure of the other Party is creating an unnecessary obstacle to trade, that Party may nominate such a non-tariff measure for review by the Subcommittee on Trade in Goods by notifying through written request letter, which shall be submitted at least 30 days before the date of the next scheduled meeting of the Subcommittee on Trade in Goods. A nomination of a non-tariff measure for review shall include reasons for its nomination, how the measure adversely affects trade between the Parties, and if possible, suggested solutions. The Subcommittee on Trade in Goods shall immediately review the measure with a view to securing a mutually agreed solution to the matter. Review by the Subcommittee on Trade in Goods is without prejudice to the Parties' rights under Chapter 15 (Dispute Settlement).
Article 2.14. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994, mutatis mutandis.
Article 2.15. Temporary Admission of Goods
1. Each Party shall, in accordance with its respective domestic law, grant temporary admission free of customs duties for the following goods imported from the other Party, regardless of their origin:
(a) professional and scientific equipment, including their spare parts, and including equipment for the press or television, software, and broadcasting and cinematographic equipment, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display, demonstration oruse at theaters, exhibitions, fairs, or other similar events;
(c) commercial samples and advertising films and recordings; (d) goods admitted for sports purposes;
(e) containers and pallets that are used for the transportation of equipment or used for refilling; and
(f) goods entered for inward processing.
2. Each Party shall, at the request of the importer and for reasons deemed valid by its customs authority, extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party may condition the temporary admission of a good referred to in paragraph 1, other than to require that the good:
(a) not be sold or leased while in its territory;
(b) be accompanied by a security in an amount no greater than the custom duties and any other tax imposed on imports that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(c) be capable of identification when exported;
(d) be exported in accordance with the time period granted for temporary admission in accordance with its domestic law related to the purpose of the temporary admission;
(e) not be admitted in a quantity greater than is reasonable for its intended use; or (f) be otherwise admissible into the importing Partyâs territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty, and any other tax or charge that would normally be owed on the importation of the good and any other charges or penalties provided for under its law.
5. Each Party through its customs authority shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted in accordance with its customs procedures.
7. Each Party shall provide that the importer of a good admitted under this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the customs authority of the importing Party before the good can be so destroyed.
Article 2.16. Goods Re-Entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters its territory in accordance with its laws and procedures after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory from which the good was exported, except that a customs duty or other taxes may be applied to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, "repair" or "alteration" does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially different good;
(b) transforms an unfinished good into a finished good; or (c) results in a change of the classification at a six-digit level of the Harmonized System (HS).