5. If a State Party detains a product at the border due to a perceived risk, it shall take a decision on clearance as soon as possible and make every effort to avoid deterioration of perishable goods.
6. If a State Party rejects a product at a port of entry, it shall ensure that appropriate legal procedures exist for the importer (the person responsible for the consignment) or his or her representative to appeal the decision.
Article 6.6. Certificates
1. Official certificates, where required, should be in line with international standards.
2, A State Party which introduces or modifies a certificate shall inform the other State Parties of the proposed new or revised certificate, in English, as soon as possible. The State Party shall provide the factual basis and justification of the new or modified certificate and give the other State Parties sufficient time to adapt to the new requirements, except in emergency cases, provided they are scientifically justified.
Article 6.7. Approval of Products and Establishments for Imports of Products of Animal Origin
1. The importing State Party may require an assessment of the exporting State Party and its competent authority in order to allow imports from a specific category of food of animal origin. The State Parties agree to use system audits as their preferred assessment method. System audits shall be conducted in accordance with the SPS Agreement and relevant international standards, guidelines and recommendations. (4) The State Parties shall justify the need to use a plant-by-plant approach for the approval of establishments.
2. If necessary and justified, the importing State Party may conduct an inspection or audit of an establishment for the purposes of verifying that the establishment complies with its sanitary requirements.
3. The costs incurred in carrying out the audit shall be borne by the importing State Party, unless the State Parties concerned decide otherwise.
4. If the importing State Party requires a list of establishments, the competent authorities of the exporting State Party shall ensure that lists of establishments are drawn up, kept up-to-date and notified to the importing State Party.(5) The competent authorities of the exporting State Party shall guarantee that the listed establishments comply with relevant requirements of the importing State Party or with requirements that have been determined to be equivalent with those requirements.
5. The importing State Party shall publish, without undue delay, the approved categories of food of animal origin and/or lists of establishments from the other State Parties and keep this information up to date. The legal basis and procedures for the approval of categories of food of animal origin and/or lists of establishments shall also be made publicly available.
6. Upon request of a State Party which considers that the approval of specific categories of food of animal origin or lists of establishments is likely to create, or has created, an obstacle to trade, consultations shall be held in accordance with Article 6.4 (Consultations).
Article 6.8. Cooperation
With a view to increasing mutual understanding of their respective systems and facilitating access to their respective markets, the State Parties shall strengthen their cooperation, Such cooperation may include, but shall not be limited to:
(a) collaboration between the relevant scientific institutions that provide the State Parties with scientific advice and risk analysis;
(b) bilateral technical cooperation, on mutually agreed terms and conditions, to improve the State Parties' sanitary and phytosanitary measures, and related activities, including research, process technology, among others;
(c) exchange of positions, where possible, in regional or multilateral fora in which international sanitary and phytosanitary standards, guidelines or recommendations are developed or related aspects are negotiated in particular in international standard setting bodies recognised in the framework of the SPS Agreement; and
(d) exchange of information on the procedures employed when conducting import checks on verifications of compliance with sanitary and phytosanitary requirements.
Article 6.9. Transparency and Notifications
1. The State Parties reaffirm their international transparency obligations and agree to notify:
(a) any draft sanitary and phytosanitary measures, in accordance with the SPS Agreement;
(b) animal health status changes, such as the outbreaks of exotic diseases, diseases, infections and infestations listed by the WOAH in its Terrestrial and Aquatic Codes or sanitary warnings on food products, within 24 hours from the confirmation of the problem; and
(c) phytosanitary status changes according to the provisions of the IPPC, such as the occurrence, outbreak or spread of pests that may be of immediate or potential danger, if possible within 72 hours from their verification.
2. In case a State Party does not fulfil the obligations under paragraph 1, it shall notify the respective sanitary and phytosanitary measure to the other State Parties.
3. Each State Party shall ensure that all sanitary and phytosanitary measures in force are publicly available on an official website. Upon request, a State Party shall provide supplementary information regarding import requirements, as far as practicable in English.
4. In every case of adoption of a sanitary or phytosanitary emergency measure affecting trade between the Parties, the State Party adopting the measure shall immediately notify the other State Parties.
Article 6.10. Equivalent Treatment
Upon request of a State Party, another State Party shall, without undue delay, consider extending to each other equivalent (6) treatment related to sanitary and phytosanitary measures which the State Parties concerned apply, according to their domestic laws and regulations, to the EU or its member states.
Article 6.11. Contact Points and Competent Authorities
1. The State Parties shall exchange names and addresses of their single contact point in order to facilitate the implementation of this Chapter.
2. Upon entry into force of this Agreement, each State Party shall provide the other State Parties with the name of its official competent authorities. (7) Such information shall also include a description of the distribution of competences between the respective authorities.
3. Each State Party shall notify any substantial change in structure, organisation and division of responsibilities of its competent authorities and contact points to the other State Parties.
Chapter 7. DIALOGUES
Article 7.1. Cooperation In Combating Antimicrobial Resistance
1. The State Parties recognise that antimicrobial resistance is a serious threat to human and animal health. Antibiotic use in animal production can contribute to antimicrobial resistance that may represent a risk to humans, either through direct infection by resistant zoonotic bacteria or by the transfer of resistance determinants to other bacteria. The State Parties recognise that the nature of the threat is transnational.
2. The State Parties agree to cooperate and follow existing and future guidelines, standards, recommendations and actions developed in relevant international organisations, initiatives and national plans aiming to promote reduced use of antibiotics and relating to animal production and veterinary practices.
3. The State Parties support the implementation of agreed international action plans on antimicrobial resistance.
Article 7.2. Maximum Residual Levels
The State Parties agree to:
(a) exchange scientific and technical information on food and feed safety, animal and plant health areas, including risk assessment and the scientific information supporting the establishment of Maximum Residue Levels (MRL);
(b) exchange information on new policies, domestic laws and regulations, guidelines, good agricultural practices, in particular those aimed at improving the authorisation process of veterinary medicines, pesticide products and food and feed additives and their uses; and
(c) facilitate scientific cooperation, dialogue and the exchange of information in particular regarding risk assessment and processes for authorising veterinary medicines, pesticide products and food and feed additives and for establishing their respective MRL.
Article 7.3. Animal Welfare
1. The State Parties recognise that animals are sentient beings. They undertake to reach a common understanding on animal welfare matters for their mutual benefit taking into consideration the WOAH guidelines and recommendations, and to respect trade conditions that aim to protect animal welfare.
2. The State Parties undertake to exchange information, expertise and experiences in animal welfare in order to improve, whenever necessary, their respective approaches on regulatory standards including those related to production systems, transportation, traceability and slaughter of animals.
3. The State Parties undertake to cooperate in international fora, including the WOAH, with the aim to promote the further development of good animal welfare practices and their implementation.
Article 7.4. Agricultural Biotechnology
This dialogue shall cover, inter alia:
(a) exchange of information on policies, legislation, guidelines, and good practices of agricultural biotechnology products;
(b) exchange of information on national positions in the framework of relevant international organisations;
(c) discussions of specific topics on biotechnology that could have impact on trade between the Parties;
(d) exchange of information on topics related to asynchronous authorisations of genetically modified organisms (GMOs);
(e) exchange of information on the economic and trade outlook of authorisations of GMOs, if available; and
(f) exchange of information about low level presence of GMOs in shipments that are non-authorised in the importing State Party but authorised in the exporting State Party.
Chapter 8. TRADE IN SERVICES
Article 8.1. Scope and Coverage
1. This Chapter applies to measures by the State Parties affecting trade in services and taken by central, regional or local governments and authorities as well as by non- governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities. It applies to all services sectors.
2. With respect to air transport services, this Chapter shall not apply to measures affecting air traffic rights or measures affecting services directly related to the exercise of air traffic rights, except measures affecting:
(a) aircraft repair and maintenance services;
(b) the selling and marketing of air transport services; and
(c) computer reservation systems (CRS) services.
3. Nothing in this Chapter shall be construed to impose any obligation on the State Parties regarding government procurement, which shall be subject to Chapter 11 (Government Procurement).
Article 8.2. Definitions
For the purposes of this Chapter:
(a) "trade In Services" means the supply of a service:
(i) from the territory of a State Party to the territory of another State Party,
(ii) in the territory of a State Party to the service consumer of another State Party;
(iii) by a service supplier of a State Party, through commercial presence in the territory of another State Party;
(iv) by a service supplier of a State Party, through presence of natural persons of a State Party in the territory of another State Party.
(b) "services" means any service in any sector, except services supplied in the exercise of governmental authority;
(c) "a service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;
(d) "service supplier" means any person that supplies, or seeks to supply, a service; (8)
(e) "natural person of another State Party" means a natural person who, under the legislation of that State Party, is:
(i) a national of that State Party who resides in the territory of any Member of the WTO; or
(ii) a permanent resident of that State Party who resides in the territory of a State Party, if the former State Party accords substantially the same treatment to its permanent residents as to its nationals with respect to measures affecting trade in services. For the purpose of the supply of a service through presence of natural persons (Mode 4), this definition covers a permanent resident of that other State Party who resides in the territory of a State Party;
(f) "juridical person of another State Party" means a juridical person which is either:
(i) constituted or otherwise organised under the domestic laws and regulations of that State Party, and is engaged in substantive business operations in the territory of a State Party; or
(ii) in the case of the supply of a service through commercial presence, owned or controlled by:
(aa) natural persons of that State Party; or
(bb) juridical persons of that State Party identified under subparagraph (f) (i);
(g) "measure" means a law, regulation, rule, procedure, decision, administrative action or any other form of a measure by a State Party;
(h) "supply of a service" includes the production, distribution, marketing, sale and delivery of a service;
(i) "measures by a State Party affecting trade in services" include measures with respect to:
(i) the purchase, payment or use of a service;
(ii) the access to and use of, in connection with the supply of a service, services which are required by those State Parties to be offered to the public generally;
(iii) the presence, including commercial presence, of persons of a State Party for the supply of a service in the territory of another State Party;
(j) "commercial presence" means any type of business or professional establishment, including through:
(i) the constitution, acquisition or maintenance of a juridical person; or
(ii) the creation or maintenance of a branch or a representative office;
within the territory of a State Party for the purpose of supplying a service;
(k) "sector" of a service means:
(i) with reference to a specific commitment, one or more subsectors of that service, as specified in a State Party's Schedule of Specific Commitments; or
(ii) the whole of that service sector, including all of its subsectors;
(l) "service of another State Party" means a service which is supplied:
(i) from or in the territory of that State Party, or in the case of maritime transport, by a vessel registered under the domestic laws and regulations of that State Party, or by a person of that State Party which supplies the service through the operation of a vessel or its use in whole or in part; or
(ii) in the case of the supply of a service through commercial presence or through the presence of natural persons, by service supplier of that State Party;
(m) "monopoly supplier of a service" means any person, public or private, which in the relevant market of the territory of a State Party is authorised or established formally or in effect by that State Party as the sole supplier of that service;
n) "service consumer" means any person that receives or uses a service;
o) "person" means either a natural person or a juridical person;
p) "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(q) a juridical person is:
(i) "owned" by persons of a State Party if more than 50 percent of the equity interest in it is beneficially owned by persons of that State Party;
(ii) "controlled" by persons of a State Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(iii) "affiliated" with another person if it controls, or is controlled by, that other person; or if it and the other person are both controlled by the same person; and
(r) "direct taxes" means all taxes on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates, inheritances and gifts, and taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
Article 8.3. Most-Favoured-Nation Treatment
1. Without prejudice to measures taken in accordance with Article VII of GATS, and except as provided for in its List of MFN Exemptions contained in Annex XI (List of MFN Exemptions), each State Party shall accord immediately and unconditionally, with respect to all measures affecting the supply of services, to services and service suppliers of another State Party treatment no less favourable than the treatment it accords to like services and service suppliers of any non-Party.
2. Treatment granted under other existing or future agreements concluded by a State Party and notified under Article V or Article Vbis of GATS shall not be subject to paragraph 1.
3. If a State Party concludes or amends an agreement referred to in paragraph 2, it shall notify the other State Parties without delay and endeavour to accord to the other State Parties treatment no less favourable than that provided under that new agreement or under the scope of the amendment to the existing agreement. The State Party concluding or amending an agreement shall, upon request by another State Party, negotiate the incorporation into this Agreement of a treatment no less favourable than that provided under that former agreement.
4. This Chapter shall not be so construed as to prevent any State Party from conferring or according advantages to adjacent countries in order to facilitate exchanges limited to contiguous zones of services that are both locally produced and consumed.
Article 8.4. Market Access
1. With respect to market access through the modes of supply identified in subparagraph (a) of Article 8.2 (Definitions), each State Party shall accord services and service suppliers of another State Party treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule of Specific Commitments. (9)
2. In sectors where market-access commitments are undertaken, the measures which a State Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule of Specific Commitments, are defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; (10)
(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test;
(e) measures which restrict or require specific types of legal entity or joint ventures through which a service supplier may supply a service; and
(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.
Article 8.5. National Treatment
1. In the sectors inscribed in its Schedule of Specific Commitments, and subject to any conditions and qualifications set out therein, each State Party shall accord to services and service suppliers of another State Party, with respect to all measures affecting the supply of services, treatment no less favourable than it accords to its own like services and service suppliers. (11)
2. A State Party may meet the requirement of paragraph 1 by according to services and service suppliers of another State Party, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.
3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of a State Party compared to like services or service suppliers of another State Party.
Article 8.6. Additional Commitments
The State Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles 8.4 (Market Access) or 8.5 (National Treatment), including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a State Party's Schedule of Specific Commitments.
Article 8.7. Domestic Regulation
1. In sectors where specific commitments are undertaken, each State Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Each State Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, each State Party shall ensure that the procedures in fact provide for an objective and impartial review.
3. Where authorisation is required for the supply of a service on which a specific commitment has been made, the competent authorities of a State Party shall, within a reasonable period of time after the submission of an application considered complete under its domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of the State Party shall provide, without undue delay, information concerning the status of the application.
4. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures do not constitute unnecessary barriers to trade in services, the State Parties shall jointly review any disciplines developed in the WTO in accordance with paragraph 4 of Article VI of GATS. The Joint Committee shall decide on the incorporation of such disciplines into this Agreement. The State Parties may also, jointly or bilaterally, decide to develop further disciplines.
5. In sectors in which a State Party has undertaken specific commitments, pending the entry into force ofa decision incorporating WTO disciplines for these sectors pursuant to paragraph 4, that State Party shall not apply licensing and qualification requirements or procedures and technical standards that nullify or impair such specific commitments in a manner which is:
(a) not based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing procedures, in itself a restriction on the supply of the service.
Article 8.8. Recognition
1. For the purposes of fulfilment of its relevant standards or criteria for authorisation, licensing or certification of service suppliers, each State Party shall give due consideration to any requests by another State Party to recognise the education or experience obtained, requirements met, or licences or certifications granted in that State Party. Such recognition may be based upon an agreement or arrangement with that State Party, or accorded autonomously.
2. Where a State Party recognises, by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted, in a non- Party, that State Party shall afford another State Party adequate opportunity to negotiate its accession to such an agreement or arrangement, whether existing or future, or to negotiate a comparable agreement or arrangement with it. Where a State Party accords recognition autonomously, it shall afford adequate opportunity for another State Party to demonstrate that the education or experience obtained, requirements met, or licences or certifications granted, in the territory of that State Party should also be recognised.
3. Any such agreement or arrangement or autonomous recognition shall be in conformity with the relevant WTO provisions, in particular paragraph 3 of Article VII of GATS.
4. Where professional bodies of the State Parties are mutually interested in establishing dialogues on issues relating to recognition of professional qualifications, licensing or registration, each State Party should consider supporting the dialogue of those bodies where requested and appropriate.
Article 8.9. Procedures for Recognition
Where a State Party has requirements for the authorisation, licensing or certification of service suppliers, whether by competent governmental authorities or relevant professional bodies, as the case may be, that State Party shall:
(a) establish or maintain procedures under which a service supplier has ways and means to request the recognition of its qualifications obtained in another State Party; and