Consultations
1. To foster mutual understanding between the Parties, or to address specific matters on the interpretation or application of this Chapter, a Party shall, upon the request of the other Party, enter into consultations on matters raised by the other Party. The Party requesting consultations shall indicate, if relevant, how the matter affects trade or investment between the Parties.
2. The Parties shall promptly discuss any questions arising from the interpretation or application of this Chapter.
3. To facilitate discussion of the matter that is the subject of the consultations, each Party shall endeavour to provide relevant non-confidential information to the other Party.
ARTICLE 23.8
Confidentiality of Information
1. Notwithstanding any other provision of this Chapter, a Party is not required to provide information if the disclosure of this information is prohibited by the laws of the Party possessing the information.
2. If a Party provides information under this Chapter, the other Party shall maintain the confidentiality of that information.
3. If a Party's competition authorities receive confidential information from the competition authorities of the other Party subject to a confidentiality waiver, the Party's competition authorities shall use the information received in accordance with the terms of the waiver.
ARTICLE 23.9
Competition Authorities
For the purposes of this Chapter, the competition authorities are the following, or their successors:
(a) in the case of the European Union:
the European Commission; and
(b) in the case of Mexico:
(i) National Antitrust Commission (Comisión Nacional Antimonopolio); and
(ii) Telecommunication Regulatory Commission (Comisión Reguladora de Telecomunicaciones (CRT)).
ARTICLE 23.10
Non-Application of Dispute Settlement
A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement) concerning the interpretation or application of the provisions of this Chapter.
Chapter 24. SUBSIDIES
ARTICLE 24.1
Definitions
For the purposes of this Chapter:
(a) "subsidy provided for goods" means a measure which fulfils the conditions set out in Article 1.1 of the SCM Agreement and is specific in accordance with and within the meaning of Article 2 of the SCM Agreement.
(b) "subsidy provided for services" means a measure which involves a financial contribution by a government or a public body and confers a benefit and is specific to an enterprise or industry or a group of enterprises or industries in accordance with and within the meaning of Article 2 of the SCM Agreement. 28
ARTICLE 24.2
General Principles
The Parties recognise that subsidies may be granted when they are necessary to achieve a public policy objective. The Parties acknowledge, however, that certain subsidies have the potential to distort the proper functioning of markets and undermine the benefits of the liberalisation of trade and investment. In principle, a Party should not grant subsidies to enterprises providing goods or services if they negatively affect, or are likely to negatively affect, trade or investment.
ARTICLE 24.3
Scope
1. This Chapter applies to subsidies to all enterprises pursuing an economic activity. If an enterprise combines economic and non-economic activities, this Chapter only applies to the economic activities of that enterprise.
2. This Chapter does not apply to subsidies granted to enterprises entrusted with the provision of particular services of public interest, including those entrusted through special rights or privileges, to the extent that such subsidies are limited to the amount necessary to cover the costs of the service in question.
3. This Chapter does not apply to subsidies provided for agricultural goods and subsidies provided for fish and fisheries products.
4. With the exception of Article 24.5, this Chapter does not apply to subsidies provided in the audio-visual sector.
5. Article 24.7 does not apply to subsidies provided for services.
ARTICLE 24.4
Relationship with the WTO
The Parties affirm their rights and obligations pursuant to Article XV of GATS, Article XVI of GATT 1994, and under the SCM Agreement.
ARTICLE 24.5
Transparency
1. Each Party shall, with respect to any subsidy granted or maintained within its territory, make the following information available to the public:
(a) the legal basis of the subsidy;
(b) the form of the subsidy;
(c) the amount of the subsidy or the amount budgeted for the subsidy; and
(d) if possible, the name of the recipient. 29
2. A Party shall be deemed to comply with paragraph 1 if:
(a) a notification is provided to the WTO pursuant to Article 25.1 of the SCM Agreement, and, if possible, the name of the recipient has been disclosed to the public; or
(b) the information required in paragraph 1 has been made available by that Party or on its behalf on a publicly accessible website by 31 December of the calendar year subsequent to the one in which a subsidy was maintained or granted. 30
3. With respect to subsidies provided for services, this Article applies only if:
(a) the amount of the subsidy per beneficiary over a period of three consecutive years is above 400 000 special drawing rights; and
(b) the subsidy is granted for the provision of services in the following sectors: audio-visual, telecommunication, financial services, transport (including maritime transport), energy (including electricity distribution), environment, computer, architecture and engineering, construction, and postal and courier services.
ARTICLE 24.6
Consultations
1. If a Party considers that a subsidy granted by the other Party is negatively affecting, or is likely to negatively affect its trade or investment, the former Party may express its concern to the other Party and request consultations on the matter. The requested Party shall accord full and sympathetic consideration to such a request.
2. During the consultations, the requesting Party may request the other Party to provide additional information about the subsidy, such as:
(a) the legal basis and policy objective or purpose of the subsidy;
(b) the form of the subsidy;
(c) the dates and duration of the subsidy and any other time limits attached to it;
(d) the eligibility requirements of the subsidy;
(e) the total amount or the annual amount budgeted for the subsidy;
(f) the name of the recipient of the subsidy, if possible; and
(g) any other information permitting an assessment of the negative effects of the subsidy on trade or investment.
3. The requested Party shall provide relevant information on the subsidy in question no later than 60 days after the date of receipt of the request referred to in paragraph 2. If any relevant information requested pursuant to paragraph 2 is not provided in the written response, the requested Party shall explain the absence of such information in its written response.
4. If the requesting Party, after receiving the information provided pursuant to paragraphs 2 and 3, informs the requested Party that it considers that the subsidy concerned has or may have a significant negative effect on its trade or investment, the requested Party shall use its best endeavours to eliminate or minimise those significant negative effects within one year thereafter.
ARTICLE 24.7
Subsidies Subject to Conditions
1. Each Party shall apply conditions to the following subsidies, in so far as they negatively affect or are likely to negatively affect trade or investment of the other Party:
(a) subsidies or legal arrangements whereby a government is responsible for covering debts or liabilities of certain enterprises are allowed subject to the condition that the coverage of those debts and liabilities is limited as regards the amount of those debts and liabilities or the duration of that responsibility;
(b) subsidies to ailing or insolvent enterprises or to those on the brink of insolvency are allowed subject to the following conditions:
(i) a credible restructuring plan has been prepared; that plan shall be based on realistic assumptions with a view to ensuring the return of the enterprise to long-term viability within a reasonable time period; and
(ii) enterprises other than small and medium-sized enterprises contribute themselves to the costs of restructuring.
2. Subparagraph 1(b) shall not be construed as preventing a Party from providing temporary liquidity support in the form of loan guarantees or loans for the time reasonably necessary to prepare a restructuring plan. Such temporary liquidity support shall be limited to the amount needed to keep the enterprise in business.
ARTICLE 24.8
Use of Subsidies
Each Party shall ensure that enterprises use the subsidies it has granted only for the policy objective or purpose for which they were granted. 31
ARTICLE 24.9
Non-Application of Dispute Settlement
A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement) concerning the interpretation or application of Article 24.5, in so far as it concerns subsidies provided for services, and Article 24.6.4.
Chapter 25. INTELLECTUAL PROPERTY
SECTION A
General Provisions
ARTICLE 25.1
Objectives and Principles
1. The objective of this Chapter is to achieve an adequate and effective level of protection and enforcement of intellectual property rights in order to:
(a) contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations; and
(b) promote and govern trade between the Parties as well as reduce distortions and impediments to trade.
2. A Party may, in formulating or amending its laws and regulations, adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with this Chapter.
3. A Party may adopt appropriate measures, provided that they are consistent with the provisions of this Chapter, to prevent the abuse of intellectual property rights by right holders or the resort to practices which unreasonably restrain trade or adversely affect the international transfer of technology.
4. Taking into consideration the underlying public policy objectives of domestic systems, the Parties recognise the need to:
(a) promote innovation and creativity;
(b) facilitate the diffusion of information, knowledge, technology, culture and the arts; and
(c) foster competition and open and efficient markets,
through their respective intellectual property systems, while respecting the principle of transparency, and taking into account the interests of all relevant stakeholders, including right holders, users and the public.
ARTICLE 25.2
Nature and Scope of Obligations
1. The Parties commit to ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties, including the TRIPS Agreement. This chapter shall complement and further specify the rights and obligations of the Parties under the TRIPS Agreement and other international treaties in the field of intellectual property to which they are parties.
2. For the purposes of this Chapter "intellectual property rights" means all categories of intellectual property rights that are covered by Sections 1 to 7 of Part II of the TRIPS Agreement as well as plant variety rights. The protection of intellectual property includes protection against unfair competition as referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property of 20 March 1883, as last revised at Stockholm on 14 July 1967 (hereinafter referred to as "Paris Convention").
3. Each Party shall give effect to the provisions of this Chapter. A Party may, but shall not be obliged to, provide more extensive protection for, or enforcement of, intellectual property rights under its law than is required by this Chapter, provided that such protection or enforcement does not contravene this Chapter. Each Party shall be free to determine the appropriate method of implementing this Chapter within its own legal system and practice.
ARTICLE 25.3
Exhaustion
This Chapter does not affect the freedom of the Parties to determine whether and under what conditions the exhaustion of intellectual property rights applies.
ARTICLE 25.4
National Treatment
1. Each Party shall accord to the nationals 32 of the other Party treatment no less favourable than it accords to its own nationals with regard to the protection 33 of intellectual property rights covered by this Chapter, subject to the exceptions provided in, respectively, the Paris Convention, the Berne Convention for the Protection of Literary and Artistic Works of 9 September 1886, as last revised at Paris on 24 July 1971 (hereinafter referred to as "Berne Convention"), the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations, done at Rome on 26 October 1961 (hereinafter referred to as "Rome Convention"), or the Treaty on Intellectual Property in Respect of Integrated Circuits, done at Washington, D.C. on 26 May 1989. In respect of performers, producers of phonograms and broadcasting organisations, this obligation only applies in respect of the rights provided under this Agreement.
2. A Party shall not, as a condition for according national treatment pursuant to this Article, require right holders to comply with any formalities or conditions in order to acquire rights in respect of copyright and related rights. 34
3. A Party may avail itself of the exceptions permitted pursuant to paragraph 1 in relation to judicial and administrative procedures, including the designation of an address for service or the appointment of an agent within its jurisdiction, only where such exceptions are:
(a) necessary to secure compliance with laws or regulations that are not inconsistent with this Chapter; and
(b) not applied in a manner that would constitute a disguised restriction on trade.
4. A Party shall not have any obligation pursuant to this Article with respect to procedures provided in multilateral agreements concluded under the auspices of the World Intellectual Property Organization (hereinafter referred to as "WIPO") relating to the acquisition or maintenance of intellectual property rights.
SECTION B
Standards Concerning Intellectual Property Rights
SUB-SECTION B.1
Copyright and Related Rights
ARTICLE 25.5
International Treaties
1. The Parties affirm their commitment to comply with the following international agreements:
(a) the Berne Convention;
(b) the Rome Convention;
(c) the WIPO Copyright Treaty, adopted in Geneva on 20 December 1996; and
(d) the WIPO Performances and Phonograms Treaty, adopted in Geneva on 20 December 1996.
2. The Parties shall make all reasonable efforts to comply with the provisions of the Beijing Treaty on Audiovisual Performances, adopted in Beijing on 24 June 2012, and the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled, adopted in Marrakesh, on 27 June 2013.
ARTICLE 25.6
Authors
Each Party shall provide authors with the exclusive right to authorise or prohibit:
(a) the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of their works;
(b) any form of distribution to the public, by sale or otherwise, of the original of their works or of copies thereof;
(c) any communication to the public of their works, by wire or wireless means, including the making available to the public of their works in such a way that members of the public may access them from a place and at a time individually chosen by them; and
(d) the commercial rental to the public of originals or copies of their works.
ARTICLE 25.7
Performers
Each Party shall provide performers with the exclusive right to authorise or prohibit:
(a) the fixation 35 of their performances;
(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of fixations of their performances;
(c) the distribution to the public, by sale or otherwise, of the fixations of their performances;
(d) the making available to the public of fixations of their performances, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them;
(e) the broadcasting by wireless means and the communication to the public of their performances, except where the performance is itself already a broadcast performance or is made from a fixation; and
(f) the commercial rental to the public of the fixation of their performances.
ARTICLE 25.8
Producers of Phonograms
Each Party shall provide producers with the exclusive right to authorise or prohibit:
(a) the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of their phonograms;
(b) the distribution to the public, by sale or otherwise, of their phonograms, including copies thereof;
(c) the making available to the public of their phonograms, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them; and
(d) the commercial rental of their phonograms to the public.
ARTICLE 25.9
Broadcasting Organisations
Each Party shall provide broadcasting organisations with the exclusive right to authorise or prohibit: 36
(a) the fixation of their broadcasts, whether these broadcasts are transmitted by wire or over the air, including by cable or satellite;
(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of fixations of their broadcasts, whether those broadcasts are transmitted by wire or over the air, including by cable or satellite;