(h) promote maritime spatial planning and integrated coastal zone management;
(i) support marine research and biotechnology; and
(j) exchange best practices on the sustainable development of maritime economic activities of mutual interest to the Parties such as ocean energy, coastal and maritime tourism.
Chapter 7. ECONOMIC POLICY
Article 7.1. Macroeconomic Policies
The Parties shall strengthen the dialogue between their authorities on macroeconomic policies and trends and promote the exchange of information and views thereon.
Article 7.2. Enterprise and Industry, Including Small and Medium-Sized Enterprises
1. The Parties shall promote a favourable environment for the development and improved competitiveness of small and medium-sized enterprises (hereinafter referred to as "SMEs") and promote horizontal industrial policy cooperation as appropriate. Such cooperation shall consist in:
(a) promoting contacts between economic operators, encouraging joint investments and establishing joint ventures and information networks through existing horizontal programmes;
(b) exchanging information and experiences on creating framework conditions for SMEs to improve their competitiveness and on procedures related to the creation of SMEs;
(c) facilitating the activities established by SMEs of both sides;
(d) exchanging information and best practices on Industry 4.0; and
(e) promoting corporate social responsibility and accountability and encouraging responsible business practices, including sustainable consumption and production.
2. The Parties shall facilitate relevant cooperation activities established by the private sector.
Article 7.3. Business and Human Rights
The Parties shall promote corporate social responsibility, in accordance with relevant international standards, such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct, at the national level, as well as to promote capacity building and the exchange of experiences at the international level.
Article 7.4. Raw Materials
1. The Parties recognise that a transparent, market-based approach is the best way to create an environment favourable to investment in the production and trade of raw materials.
2. The Parties shall promote cooperation on issues relating to raw materials within relevant regional or multilateral settings or through bilateral dialogue on request of either Party, based on mutual interests. This cooperation shall aim to remove barriers to trade in raw materials within such settings, strengthen a rules-based global framework for trade in raw materials, promote transparency in global markets for raw materials and contribute to sustainable development.
3. Such cooperation may include exchanges of information in relation to:
(a) supply and demand, bilateral trade and investment issues as well as international trade issues;
(b) tariff and non-tariff barriers for raw-material goods, related services and investments;
(c) the Parties' respective regulatory frameworks;
(d) technologies applied to production processes and use of raw materials; and
(e) best practices in relation to sustainable development of the mining industry, including minerals policy, land-use planning, permitting procedures, transparency and governance.
Article 7.5. Statistics
The Parties shall cooperate in the field of statistics, in particular by actively promoting the sharing of best practices. Such cooperation may include:
(a) increased attendance at high-level international meetings in topics of mutual interest;
(b) the harmonisation of statistics methodologies to improve data comparability; and
(c) the production and dissemination of official statistics and the development of indicators.
Article 7.6. Transport
1. The Parties shall cooperate and strengthen dialogue in all relevant areas of transport policy, including integrated transport policy, with a view to improving the movement of goods and passengers, promoting maritime and aviation safety and security and environmental protection and increasing the efficiency of their transport systems.
2. Such cooperation and dialogue may include:
(a) exchanging information and best practices with regard to their respective transport policies;
(b) strengthening aviation relations between Mexico and the Union including exploring the possibility of concluding a dedicated aviation agreement;
(c) promoting the goals of unrestricted access to international maritime markets and trade, based on fair competition and on a commercial basis;
(d) facilitating maritime transport, logistics chains and multi-modal transport to enhance competitiveness and economic relations;
(e) promoting environment-related transport issues;
(f) facilitating expert dialogue and cooperation within international transport fora; and
(g) supporting the cross-border electronic flow of information for the promotion of a dynamic environment for efficient and cost-effective transport services.
Chapter 8. EDUCATION, CULTURE AND SOCIAL ISSUES
Article 8.1. Education
The Parties shall promote cooperation and dialogue in relevant areas of education, including:
(a) strengthening higher education and technical and vocational education and training;
(b) increasing the mobility of students, researchers, academic and administrative staff from higher-education institutions; and
(c) fostering capacity building in higher education institutions, including the improvement of mechanisms for recognition of qualifications and study periods abroad.
Article 8.2. Culture
1. The Parties shall cooperate in relevant international fora, in particular the UN Educational, Scientific and Cultural Organization (hereinafter referred to as the "UNESCO"), in order to pursue common objectives and to foster cultural diversity, including through implementation of the Convention on the Protection and Promotion of the Diversity of Cultural Expressions, adopted by the General Conference of the UNESCO in Paris on 20 October 2005.
2. The Parties shall promote closer cooperation in the cultural and creative sectors and industries, including emerging and new technologies and audio-visual media, in order to enhance, inter alia, mutual understanding and knowledge of their respective cultures.
3. The Parties shall promote cultural exchanges and carry out joint initiatives in various cultural areas under available cooperation frameworks.
4. The Parties shall promote cooperation and joint initiatives related to the creation, promotion and dissemination of digital contents in the artistic and cultural field within a legal framework that recognises and values the work of creators, as a way to enhance universal access to culture and its components.
5. The Parties shall encourage intercultural dialogue between their respective civil society organisations as well as individuals.
6. The Parties recognise the role played by culture as both an enabler and driver of the economic, social and environmental dimensions of conflict prevention and sustainable development, bearing in mind that the cultural and creative industries are major drivers of the economies of developed and developing countries.
Article 8.3. Employment and Social Issues
1. The Parties acknowledge that improving living standards, creating quality jobs and promoting decent work should be at the heart of employment and social policies.
2. The Parties shall respect and promote the fundamental principles and rights at work set out in the International Labour Organization's (hereinafter referred to as the "ILO") Declaration on Fundamental Principles and Rights at Work, adopted by the International Labour Conference in Geneva on 18 June 1998, and in the corresponding ILO Conventions to which they are party.
3. The Parties shall enhance cooperation in the field of employment, social dialogue and social affairs and promote exchanges of information regarding employment, health and safety at work, labour issues and social protection.
Article 8.4. Exponential Technological Change
The Parties shall share lessons learned and best practices to address in an effective and comprehensive manner the impacts of exponential technological change, automation, and its implications towards the full implementation of the SDGs.
Article 8.5. Social Cohesion and Inclusion
The Parties shall cooperate to enhance social cohesion through the reduction of poverty in all its forms, inequality and social exclusion with a view to achieving the SDGs globally and promoting fair globalisation, full employment, and decent work for all men and women including through:
(a) strengthening social protection systems;
(b) encouraging equal access and non-discrimination in social policies;
(c) fostering innovation to address social challenges through the exchange of information on best practices, and the promotion of dialogue and research in this sector; and
(d) promoting social economy solidarity for inclusion and combatting poverty.
Article 8.6. Health
1. The Parties shall cooperate in the field of public health, including prevention and health promotion, to raise the level of public health safety and promote universal health coverage.
2. Such cooperation may include:
(a) exchanging information and collaborating on issues of mutual interest;
(b) promoting implementation of international health agreements; and
(c) facilitating exchanges, fellowships and training programmes in the areas referred to in paragraph 1.
Article 8.7. Tourism
1. The Parties shall cooperate in the area of tourism. Such cooperation shall primarily aim to improve the exchange of information and best practices in order to ensure the balanced and sustainable development of tourism and to support the creation of jobs and economic development.
2. Such cooperation shall focus on:
(a) safeguarding and maximising the potential of natural and cultural heritage;
(b) practices encouraging responsible tourism and respect of local communities;
(c) exchanging information and best practices about actions to improve skills and competences in the tourism sector;
(d) promoting information exchange and cooperation for creative industries and innovation in the tourism sector; and
(e) exchanging best practices with a view to mainstreaming sustainability principles, in particular biodiversity, in tourism.
Chapter 9. RESEARCH, INNOVATION AND DIGITAL ECONOMY
Article 9.1. Research and Innovation
1. The Parties shall cooperate in the area of scientific research, technological development and innovation on the basis of mutual interest and benefit and in accordance with their respective legislation. Such cooperation shall aim to promote sustainable development, tackle global societal challenges, achieve scientific excellence, improve regional competitiveness, as well as strengthen relations between the Parties, leading to long lasting partnerships. The Parties shall foster policy dialogue at bilateral and regional levels and use their different instruments, including agreements for scientific and technological cooperation, in complementary ways.
2. The Parties shall seek to:
(a) improve conditions for mobility of researchers, scientists, experts, students and entrepreneurs and for movement of material and equipment across borders;
(b) facilitate reciprocal access to each other's science, technology and innovation (hereinafter referred to as the "STI") programmes, research infrastructures and facilities, publications and scientific data;
(c) increase cooperation in pre-normative research and standardisation; and
(d) promote common principles to achieve an adequate and effective level of protection and enforcement of intellectual property rights in research and innovation projects.
3. The Parties shall promote the following activities to be undertaken by government organisations, public and private research centres, higher-education institutions, innovation agencies and networks, and other stakeholders, including SMEs:
(a) joint initiatives to raise awareness on science, technology, innovation, and capacity-building programmes and opportunities for participating in each other's programmes;
(b) joint meetings and workshops aiming at exchanging information, best practices and identifying areas for joint research;
(c) joint research actions in areas of mutual interest;
(d) mutually recognised assessment and evaluation of scientific cooperation and dissemination of the corresponding results.
Article 9.2. Digital Economy
1. The Parties recognise that information and communication technologies (hereinafter referred to as "ICTs") are key elements of modern life and are of vital importance to contribute to strengthen information and knowledge in a society in order to enhance economic, educational and social development. The Parties shall exchange views on their respective policies in this field.
2. Such cooperation may include:
(a) exchanging views on the different aspects of the digital single market policy, in particular electronic communications policies and regulation, including access to broadband services, protection of privacy and personal data, e-government, open government, open data, internet security, e-health, and the independence of regulatory authorities;
(b) promoting ICTs as means to promote economic, social and cultural development, social and digital inclusion and cultural diversity, emphasising the entrepreneurial spirit and participatory collaborative work as well as stimulating connectivity in schools and developing research and academic networks;
(c) developing the interconnection and interoperability of research networks, computing and scientific data infrastructures and services, including those within a regional context;
(d) cooperating in the area of e-government and trust services such as electronic signature and electronic identification (eID), with a focus on exchanging policy principles, information and best practices on the use of ICTs to modernise public administration, promote high quality public services, improve organisational efficiency and transparent management of public resources;
(e) exchanging information on standards, conformity assessment and type approval; and
(f) promoting the exchange and training of specialists, in particular young professionals.
(1) Where a provision of this Part contains a reference to another provision of this Agreement, that reference is to another provision of this Part, unless explicitly indicated otherwise.
(2) Where a provision of this Part contains a reference to another provision of this Agreement, that reference is to another provision of this Part, unless explicitly indicated otherwise.
Part III. TRADE AND INVESTMENT (1)
Chapter 1. GENERAL AND INSTITUTIONAL PROVISIONS
Section A. General Provisions
Article 1.1. Establishment of a Free Trade Area
The Parties establish by virtue of this Part of the Agreement a free trade area, consistent with Article XXIV of GATT 1994 and Article V of GATS.
Article 1.2. Objectives
The objectives of this Part of the Agreement are:
(a) the expansion and diversification of trade in goods, in conformity with Article XXIV of GATT 1994, between the Parties through the reduction or the elimination of customs duties and non-tariff barriers to trade;
(b) the facilitation of trade in goods, in particular through the provisions regarding customs and trade facilitation, standards, technical regulations and conformity assessment procedures as well as sanitary and phytosanitary measures, while preserving the right of each Party to regulate within its territory and to achieve public policy objectives;
(c) the liberalisation of trade in services, in conformity with Article V of GATS;
(d) the development of a framework conducive to increased investment flows by providing transparent, stable and predictable rules governing the conditions for establishment of enterprises and the related movement of capital, and guaranteeing an appropriate balance between the liberalisation and the protection of investments and the right of each Party to regulate in order to achieve legitimate policy objectives;
(e) the establishment of an investment court system to solve investor-state disputes in an effective, impartial and predictable manner;
(f) the effective and reciprocal opening of government procurement markets of the Parties;
(g) the promotion of innovation and creativity by ensuring an adequate and effective protection of intellectual property rights, in accordance with international obligations in force between the Parties, and the balance between this protection and the public interest;
(h) the conduct of trade and investment relations between the Parties in conformity with the principle of free and undistorted competition;
(i) the promotion of sustainable development and of the development of international trade in a manner that contributes to sustainable development, encompassing economic development, social development and environmental protection;
(j) the establishment of an effective, fair and predictable dispute settlement mechanism to solve disputes between the Parties on the interpretation or application of this Part of the Agreement.
Article 1.3. Definitions of General Application
For the purposes of this Part of the Agreement, and unless otherwise specified:
(a) "administrative ruling of general application" means an administrative ruling or interpretation that applies to all persons and factual situations that fall generally within the scope of that administrative ruling or interpretation and that establishes a norm of conduct, but does not include:
(i) a determination or ruling made in administrative or quasi-judicial proceedings that applies to a particular person, good or service of the other Party in a specific case; or
(ii) any other ruling that adjudicates with respect to a particular act or practice;
(b) "Agreement on Agriculture" means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
(c) "agricultural good" means a product listed in Annex 1 to the Agreement on Agriculture;
(d) "aircraft repair and maintenance services during which an aircraft is withdrawn from service" means repair and maintenance activities undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include line maintenance;
(e) "Anti-dumping Agreement" means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(f) "computer reservation system services" means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, and through which reservations can be made or tickets may be issued;
(g) "customs duty" means any duty or charge of any kind imposed on or in connection with the importation of a good, it includes any surtax or surcharge imposed in connection with such importation; but does not include any:
(i) charge equivalent to an internal tax imposed in accordance with Article 2.3;
(ii) anti-dumping or countervailing (2) duty applied in accordance with GATT 1994, the Anti‑dumping Agreement and the SCM Agreement, as appropriate;
(iii) fee or other charge imposed on or in connection with the importation of a good that is limited in amount to the approximate cost of services rendered; and
(iv) premium offered or collected on an imported good arising out of a tendering system authorised for the administration of tariff rate quotas pursuant to Appendix 2-A-4 (Tariff Rate Quotas of Mexico);
(h) "Customs Valuation Agreement" means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(i) "days" means calendar days, including weekends and holidays;
(j) "DSU" means the Understanding on Rules and Procedures Governing the Settlement of Disputes, contained in Annex 2 to the WTO Agreement;
(k) "enterprise" 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;
(l) "existing" means in effect on the date of entry into force of this Agreement;
(m) "freely convertible currency" means a currency which is widely traded in international foreign exchange markets and widely used in international transactions;
(n) "GATS" means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
(o) "GATT 1994" means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
(p) "goods" means both materials and products;
(q) "good of a Party" means a domestic good as this is understood in GATT 1994, and includes originating goods of that Party;
(r) "ground handling services" means the supply at an airport, on a fee or contract basis, of airline representation, administration and supervision services, passenger handling, baggage handling, ramp services, catering, (3) air cargo and mail handling, fuelling of an aircraft, aircraft servicing and cleaning, surface transport, and flight operation, crew administration and flight planning services; but does not include self-handling, security, line maintenance, aircraft repair and maintenance; and management or operation of essential centralised airport infrastructure such as de-icing facilities, fuel distribution systems, baggage handling systems and fixed intra-airport transport systems;
(s) "Harmonized System" or "HS" means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes and Subheading Notes and amendments thereto;