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effectively implement the commitments established by the UNFCCC and the Paris Agreement;
promote the contribution of trade to the transition to a low-carbon- economy and to climate-resilient development, in a manner that does not threaten food production; and
cooperate bilaterally, regionally and in international fora, as appropriate, on trade-related climate change issues, including exchange of information on adaptation practices and processes.
Article 13.9. Trade and Biological Diversity
1. The State Parties recognise the importance of the conservation and sustainable use of biological diversity, and the role of trade in pursuing these objectives.
2. Pursuant to paragraph 1, the State Parties commit to:
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promote the inclusion of animal and plant species in the Appendices to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) where a species is threatened or may be threatened with extinction in relation to international trade;
implement effective measures to combat transnational organised wildlife crime and address both demand for and the supply chains of illegal wildlife products;
enhance efforts to prevent, eradicate or control the introduction and spread of alien species which threaten ecosystems, habitats or species, in connection with trade activities;
cooperate, where applicable, on issues concerning trade and the conservation and sustainable use of biological diversity, including initiatives to reduce demand for illegal wildlife products; and
promote, in accordance with the rights and obligations under the international agreements to which they are a party, including the Convention on Biological Diversity (CDB), the fair and equitable sharing of benefits arising from the commercial use of genetic resources, and,
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where appropriate, measures for access to genetic resources and obtention of prior informed consent.
Article 13.10. Sustainable Forest Management and Associated Trade
1. The State Parties recognise the importance of ensuring conservation and sustainable management of forests and related ecosystems with the objective to, inter alia, preserve biological diversity and reduce greenhouse gas emissions resulting from deforestation and degradation of forests and related ecosystems, including from land use and land-use change, in line with their international commitments.
2. With the aim of contributing to the conservation and sustainable management of forests and related ecosystems, the State Parties, undertake to, inter alia:
(a) promote trade in products that derive from sustainably managed forests;
(b) promote the effective use of CITES with regard to endangered timber species;
(c) combat illegal logging by improving forest law enforcement and governance and by promoting the effective implementation and use of instruments to ensure that only legally sourced timber is traded among the State Parties;
(d) promote the development and use of certification schemes for products from sustainably managed forests;
(e) cooperate on issues relating to sustainable forest management through existing bilateral arrangements, if applicable, and in the relevant multilateral fora in which they participate, such as through the United Nations initiative to Reducing Emissions from Deforestation and Forest Degradation (REDD+) as encouraged by the Paris Agreement;
® promote, as appropriate and with their free, prior and informed consent, the inclusion of indigenous peoples and other forest dependent communities in sustainable supply chains for responsible business of timber and non-timber forest products, as a means of enhancing their livelihoods and of promoting the conservation and sustainable use of forests; and
(g) implement measures to promote forest restoration for its conservation or sustainable use.
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Article 13.11. Trade and Sustainable Management of Fisheries and Aquaculture
1. The State Parties recognise the importance of ensuring the conservation and sustainable management of living marine resources and marine ecosystems and the role of trade in pursuing these objectives.
2. Pursuant to paragraph 1, the State Parties commit to:
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implement, consistent with their international obligations, comprehensive, effective and transparent policies and measures to combat illegal, unreported and unregulated (UU) fishing and to exclude from international trade products that do not comply with such policies and measures;
(b) promote the use of FAOâs voluntary guidelines for Catch Documentation Schemes;
(c) cooperate bilaterally and in relevant international fora in the fight against IUU fishing with the aim of achieving sustainable fisheries management by, inter alia, facilitating the exchange of information on TUU fishing activities;
(d) promote the development of sustainable and responsible aquaculture; and
(e) contribute to the fulfilment of the objectives set out in the 2030 Agenda for Sustainable Development regarding fisheries subsidies.
Article 13.12. Trade and Sustainable Agriculture and Food Systems 1. the State Parties Recognise the Importance of Sustainable Agriculture and Foodsystems and the Role of Trade In Achieving These Objectives. the State Parties Reiterate Their Shared Commitment to Achieve the 2030 Agenda for Sustainable Development and Its Sustainable Development Goals.
2. Pursuant to paragraph 1, the State Parties shall:
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promote sustainable agriculture and associated trade;
promote sustainable food systems so as to contribute to, inter alia, food security;
exchange information, experience and good practices concerning sustainable agriculture and food systems and relevant trade-related initiatives;
conduct a dialogue on issues addressed in this Article; and
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(e) report on progress made in attaining sustainable agriculture and food systems through the use and development of agricultural practices and technologies.
Article 13.13. Cooperation
The State Parties recognise the importance of working together, in order to achieve the objectives of this Chapter. To this end, they may work together on, inter alia:
(a) trade and investment related labour and environmental issues of mutual interest in relevant bilateral, regional and multilateral fora;
(b) voluntary sustainability certification schemes such as fair and ethical trade schemes and eco-labels; or
(c) trade-related aspects of the implementation of multilateral environmental agreements and the fundamental and other up-to-date ILO Conventions.
Article 13.14. Implementation, Consultations and Panel of Experts
1. The State Parties shall designate contact points for the purpose of implementing this Chapter.
2. The State Parties shall make every effort through dialogue, consultations, exchange of information and cooperation to address any matter arising under this Chapter and shall try to reach a mutually satisfactory solution of such matter.
3. Any time period mentioned in Articles 13.15 (Consultation Procedures) and 13.16 (Panel of Experts) may be extended by mutual agreement of the State Parties concerned. All time periods established under this Chapter shall be counted from the day following the act or fact to which they refer.
4. The State Parties shall not have recourse to Chapter 15 (Dispute Settlement) for any matter arising under this Chapter.
Article 13.15. Consultations Procedures
1. A State Party may request consultations with another State Party regarding the interpretation or application of this Chapter by delivering a written request to that State Party. The State Party requesting consultations shall at the same time notify the other State Parties in writing of the request. The request shall provide a brief summary of the matter at issue, including an indication of the relevant provisions of this Chapter and an explanation on how it affects the commitments thereunder, as well as any other
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information the requesting State Party deems relevant. Consultations shall start promptly after the request for consultations has been delivered, and in any event no later than 30 days from the date of receipt of the request.
2. Consultations shall be held in person or, if agreed by the State Parties concerned, by videoconference or other virtual means. If the consultations are held in person, they shall be held in the State Party to whom the request is directed, unless the State Parties concerned agree otherwise.
3. The State Parties concerned shall enter into consultations with the aim of reaching a mutually satisfactory solution of the matter. With regard to matters related to the multilateral agreements referred to in this Chapter, the State Parties concerned shall take into account information from relevant organisations or bodies responsible for the multilateral agreements to which they are parties, in order to promote coherence between the work of the State Parties and these organisations. Where relevant, the State Parties concerned may agree to seek advice from such organisations or bodies, or any other relevant expert, international organisation or body they deem appropriate.
4. Ifa State Party concerned considers that the matter needs further discussion, that State Party may request in writing the other State Party concerned that a Joint Committee meeting shall take place, The State Party requesting consultations in the Joint Committee shall at the same time notify the other State Parties in writing of the request. Such a request shall be made no earlier than 60 days from the date of the receipt of the request under paragraph 1. The Joint Committee shall meet promptly and endeavour to reach a mutually satisfactory solution of the matter.
5. Consultations under this Article, and the positions taken by the State Parties during such consultations, shall be confidential. Notwithstanding the preceding sentence, the outcome of these consultations shall be made public unless the consulting parties agree otherwise. Where the outcome of consultations is made public, this shall be through a jointly agreed report.
6. Each State Party shall treat as confidential any information exchanged in the consultations which another State Party has designated as confidential.
Article 13.16. Panel of Experts
1. If within 120 days from the date of receipt of a request for consultation under paragraph 1 of Article 13.15 (Consultation Procedures) the State Parties concerned fail to reach a mutually satisfactory solution of a matter arising under this Chapter, a State Party may request the establishment of a panel of experts to examine the matter. Such request shall be made in writing to the other State Party concerned and shall identify the reasons for requesting the establishment of a panel of experts, including a description of the matter at issue and indicating the relevant provisions of this Chapter that it considers applicable.
2. A State Party requesting the establishment of a panel of experts shall at the same time notify the other State Parties in writing of the request.
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3. The Joint Committee shall agree on the establishment, composition, terms of reference and rules of procedure of the panel of experts at its first meeting.
Should a matter arise before the Joint Committee has reached an agreement, Articles 15.6 (Establishment of the Arbitration Panel), 15.7 (Composition of the Arbitration Panel)), 15.8 (Rules of Procedure), 15.10 (Hearings), 15.16 (Costs) and 15.17 (Confidentiality) as well as Annex XIX (Rules of Procedure) shall apply, mutatis mutandis. In such a case, the terms of reference shall be: âTo examine, in the light of the relevant provisions of Chapter 13 (Trade and Sustainable Development) and the Record of Understanding Relating to Chapter 13 (Trade and Sustainable Development) of the Free Trade Agreement Between the EFTA States the MERCOSUR State Parties (Record of Understanding), the matter referred to in the request for the establishment of the panel of experts, and to issue a report, in accordance with Article 13.16 (Panel of Experts), making recommendations for the resolution of the matter.â
4. The panellists should have specialised knowledge of, or expertise in, issues addressed in this Chapter or the Record of Understanding including in international trade law and international labour law or environmental law. They shall be independent, serve in their individual capacities and shall not take instructions from any organisation or government with regard to issues related to the matter arising under this Chapter or the Record of Understanding, or be affiliated with the government of a State Party.
5. The panel of experts may seek information or advice from relevant international organisations or bodies. Any information obtained shall be submitted to the State Parties concerned for their comments.
6. Where the matter arising under this Chapter or the Record of Understanding regards compliance with obligations under a multilateral environmental agreement to which the consulting State Parties are parties, the requesting State Party should, where appropriate, address the matter through the consultative procedure or other procedures under that multilateral environmental agreement.
7. The panel of experts shall interpret this Chapter and the Record of Understanding in accordance with the customary rules of interpretation of public international law.
8. The panel of experts shall submit an interim report containing its findings and recommendations to the State Parties concerned within 90 days from the date of establishment of the panel of experts. A State Party concerned may submit written comments to the panel of experts on its initial report within 45 days from the date of receipt of the report. After considering such written comments, the panel of experts may modify the interim report and make any further examination it considers appropriate. The panel of experts shall issue a final report to the State Parties concerned no later than 60 days from the date of receipt of the interim report. The final report shall be made publicly available within 15 days from its issuance by the panel of experts.
9. If the panel of experts considers that it cannot comply with a timeframe provided for under this Article, it shall inform the State Parties concerned in writing and provide an estimate of the additional time required. Any additional time should not exceed 30 days.
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10. The State Parties concerned shall discuss appropriate measures to be implemented taking into account the final report and recommendations of the panel of experts. Such measures shall be communicated to the other State Parties no later than 90 days from the date of issuance of the final report and shall be monitored by the Joint Committee.
Article 13.17. Review
The Joint Committee shall periodically review progress achieved in pursuing the objectives set out in this Chapter and consider relevant international developments in
order to identify areas where further action could promote these objectives.
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Chapter 14. INSTITUTIONAL PROVISIONS
Article 14. Joint Committee
1. The Parties hereby establish the EFTA-MERCOSUR Joint Committee. The Joint Committee shall be composed of representatives of each State Party at senior official level or as otherwise designated by the State Parties in accordance with their internal atrangements.
2, The Joint Committee shall:
(a) supervise and review the implementation of this Agreement;
(b) review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between the Parties;
(c) oversee any further elaboration of this Agreement;
(d) supervise the work of all sub-committees and working groups established under this Agreement;
(e) endeavour to resolve disagreements that may arise regarding the interpretation or application of this Agreement; and
® consider any other matter that may affect the operation of this Agreement.
3. The Joint Committee may decide to set up sub-committees and working groups to assist it in accomplishing its tasks. Except where otherwise provided for in this Agreement, the sub-committees and working groups shall work under a mandate established by the Joint Committee.
4. The Joint Committee may take decisions as provided for in this Agreement.5 On other matters the Joint Committee may make recommendations.
5. The Joint Committee may:
(a) consider and recommend to the Parties amendments to this Agreement; and
(b) â decide to amend any Annexes or Appendices to this Agreement.
6. The Joint Committee shall take decisions and make recommendations by consensus among all State Parties. The Joint Committee may adopt decisions and make recommendations regarding issues related to only one or several EFTA States on the one
5 In case the Joint Committee takes binding decisions that are not amendments to this Agreement, the Joint Committee shall specify whether such decision shall be subject to Chapter 15 (Dispute Settlement).
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side and one or several MERCOSUR States on the other side. In this case, consensus shall only involve and the decision or recommendation shall only apply to those State Parties.
7. The Joint Committee shall meet within one year of the entry into force of this Agreement. Thereafter, it shall meet whenever necessary but normally every two years. Its meetings shall be chaired jointly by one of the EFTA States and one of the MERCOSUR States. If the State Parties agree, a meeting of the Joint Committee may be held by electronic means.
8. Each State Party may request at any time, through a notice in writing to the other State Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days from the receipt of the request, unless the State Parties agree otherwise.
9. If a State Party in the Joint Committee has accepted a decision subject to the fulfilment of domestic legal requirements, the decision shall enter into force on the date that the last State Party notifies that its internal requirements have been fulfilled, unless otherwise agreed. The Joint Committee may decide that the decision enters into force for those Parties that have fulfilled their internal requirements, provided that at least one EFTA State and one MERCOSUR State are one of those Parties.
10. The Joint Committee shall establish its rules of procedure.
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Chapter 15. DISPUTE SETTLEMENT
Article 15.1. Scope and Coverage
Unless otherwise specified in this Agreement, this Chapter applies to any disputes concerning the interpretation or application of this Agreement.
Article 15.2. Choice of Forum
1. Disputes regarding the same matter arising under this Agreement and under the WTO Agreement may be settled under this Chapter or under the WTO Dispute Settlement Understanding at the discretion of the complaining Party.â The forum thus selected shall be used to the exclusion of the other.
2. For the purposes of paragraph 1, dispute settlement procedures are deemed to be initiated, and thus the forum selected:
(a) under the WTO Agreement, upon a Partyâs request for the establishment of a panel under Article 6 of the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO; and
under this Agreement, upon a Partyâs request for arbitration pursuant to 8 ip arty paragraph 1 of Article 15.6 (Establishment of the Arbitration Panel).
Article 15.3. Parties to a Dispute
1. For the purposes of this Chapter, one or more EFTA States, MERCOSUR or one or more MERCOSUR States, may be parties to a dispute.
2. One or more EFTA States may initiate a dispute settlement proceeding against one or more MERCOSUR States. In case of a measure of MERCOSUR, one or more EFTA States may in addition initiate a dispute settlement proceeding against MERCOSUR. The fact that a measure of a MERCOSUR State is derived from or related to a measure of MERCOSUR shall not preclude a dispute settlement proceeding against the MERCOSUR State concerning its measure. A MERCOSUR State complained against
6 For the purposes of this Chapter, the terms âPartyâ, âparty to the disputeâ, âcomplaining Partyâ and âParty complained againstâ can denote one or more Parties.
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may not invoke as a defence that the measure is an implementation of a MERCOSUR measure.
3. MERCOSUR may initiate a dispute settlement proceeding against one or more EFTA States whenever the measure at issue is a measure of one or more EFTA States that affects all MERCOSUR States.
4. One or more MERCOSUR States may initiate a dispute settlement proceeding against one or more EFTA States.
Article 15.4. Good Offices, Conciliation or Mediation
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the parties to the dispute so agree. They may begin and, upon request of a party to the dispute be terminated at any time. They may continue while proceedings of an arbitration panel established in accordance with this Chapter are in progress.
2. Proceedings involving good offices, conciliation and mediation, and in particular positions taken by the parties to the dispute during these proceedings, shall be confidential. These proceedings shall be without prejudice to the rights of the parties to the dispute in any other proceedings.
Article 15.5. Consultations
1. The Parties shall at all times endeavour to settle any disputes referred to in Article 15.1 (Scope and Coverage) and shall make every attempt through cooperation and consultations to agree on the interpretation and application of this Agreement and to reach a mutually satisfactory solution of any matter raised in accordance with this Article.
2. A Party may request in writing bilateral consultations with another Party if it considers that a measure is inconsistent with this Agreement. The Party requesting bilateral consultations shall at the same time notify the other Parties in writing of the request. The Party to which the request is made shall reply within ten days from the receipt of the request.
3. Bilateral consultations shall commence within 30 days from the receipt of the request for consultations. Bilateral consultations on urgent matters, including those on perishable goods, shall commence within 15 days from the receipt of the request for consultations. If the Party to which the request is made does not reply within ten days or does not enter into consultations within 30 days from the receipt of the request for bilateral consultations, or within 15 days for urgent matters, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 15.6 (Establishment of the Arbitration Panel).
4. If the parties to the dispute do not reach a mutually agreed solution through
bilateral consultations in accordance with paragraph 3, within 45 days, or within 30 days for urgent matters, from the receipt of the request for such consultations, each party to the
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dispute may request in writing consultations in the Joint Committee established under Article 14 Joint Committee).
5. Consultations in the Joint Committee shall commence within 75 days, or within 50 days for urgent matters, from the receipt of the request for bilateral consultations. If the Party to which the request is made does not enter into consultations in the Joint Committee within these deadlines, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 15.6 (Establishment of the Arbitration Panel). Should it not be possible to hold the meeting of the Joint Committee within this period of time, the parties to the dispute may extend this term by consensus.
6. The parties to the dispute shall provide information to enable a complete examination of whether the measure is inconsistent with this Agreement and treat any confidential information exchanged in the course of consultations in the same manner as the Party providing the information.
7. Upon agreement of the parties to the dispute, the bilateral consultations and the consultations in the Joint Committee may be held in person or by any technological means available. If consultations are held in person, these should take place in the territory of the Party complained against, unless the parties to the dispute agree otherwise.
8. Consultations shall be confidential and without prejudice to the rights of the parties to the dispute in any other proceedings.
9. The parties to the dispute shall inform the other Parties of any mutually agreed resolution of the matter.
Article 15.6. Establishment of the Arbitration Panel
1. If the consultations referred to in Article 15.5 (Consultations) fail to settle a dispute within 105 days, or 60 days in relation to urgent matters, including those on perishable goods, from the receipt of the request for bilateral consultations by the Party complained against, the complaining Party may request the establishment of an arbitration panel by means ofa written request to the Party complained against. A copy of this request shall be communicated to the other Parties so that they may determine whether to participate in the arbitration proceeding.
2. The request for the establishment of an arbitration panel shall identify the specific measure at issue and provide a brief summary of the legal and factual basis of the complaint.
3. The arbitration panel shall be appointed pursuant to Article 15.7 (Composition of the Arbitration Panel). The date of establishment of the arbitration panel shall be the date on which the Chair has accepted appointment.
4. Unless the parties to the dispute agree otherwise within 20 days from the receipt of the request for the establishment of the arbitration panel, the terms of reference for the arbitration panel shall be:
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âTo examine, in light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of an arbitration panel pursuant to Article 15.6 (Establishment of the Arbitration Panel) and to make findings of law and fact together with the reasons, as well as recommendations, if any, for the resolution of the dispute and the implementation of the ruling.â