ARTICLE 31.26
Objective
The objective of the mediation mechanism is to facilitate the finding of a mutually agreed solution through a comprehensive and expeditious procedure with the assistance of a mediator.
ARTICLE 31.27
Initiation of the Mediation Procedure
1. A Party may at any time request the other Party, in writing, to enter into a mediation procedure with respect to any measure of that Party adversely affecting trade or investment between the Parties. Consultations are not required before initiating the mediation procedure.
2. The request shall be sufficiently detailed to clearly present the concerns of the requesting Party and shall:
(a) identify the measure at issue;
(b) provide a statement of the adverse effects that the requesting Party considers the measure has, or will have, on trade or investment between the Parties; and
(c) explain how the requesting Party considers that those effects are linked to the measure.
3. The mediation procedure may only be initiated by mutual agreement of the Parties. The Party to which the request is made shall give sympathetic consideration to the request and deliver its written acceptance or rejection to the requesting Party within 10 days after its receipt. Otherwise the request shall be regarded as rejected.
ARTICLE 31.28
Selection of the Mediator
1. The Parties shall endeavour to agree on a mediator, if possible, no later than 15 days after the receipt of the acceptance of the request.
2. In the event that the Parties are unable to agree on a mediator within the time period set out in paragraph 1, either Party may request an appointing authority listed in the Rules of Procedure in Annex 31-A to select the mediator by lot, within five days after the request, from the sub-list of individuals who shall serve as chairpersons referred to in Article 31.8.
3. If the sub-list of individuals who shall serve as chairpersons referred to in Article 31.8 has not been adopted by the Joint Committee at the time a request is made pursuant to Article 31.27, the mediator shall be drawn by lot from the individuals designated by one or both Parties for that sub‑list, as the case may be.
4. A mediator shall not be a national of either Party or employed by either Party, unless the Parties agree otherwise.
5. A mediator shall comply with the Code of Conduct for Panellists and Mediators in Annex 31‑B.
ARTICLE 31.29
Rules of the Mediation Procedure
1. Within 10 days of the appointment of the mediator, the Party which invoked the mediation procedure shall deliver to the mediator and to the other Party a detailed written description of its concerns, in particular relating to the operation of the measure at issue and its possible adverse effects on trade or investment between the Parties. Within 20 days after the receipt of this description, the other Party may deliver written comments on this description.
2. The mediator shall assist the Parties in a transparent manner in bringing clarity to the measure at issue and its possible adverse effects on trade or investment between the Parties. In particular, the mediator may organise meetings between the Parties, consult the Parties jointly or individually, seek the assistance of, or consult with, relevant experts and stakeholders, and provide any additional support requested by the Parties. The mediator shall consult with the Parties before seeking the assistance of, or consulting with, relevant experts and stakeholders.
3. The mediator may offer advice and propose a solution for the consideration of the Parties. The Parties may accept or reject the proposed solution, or agree on a different solution. The mediator shall not advise or comment on the consistency of the measure at issue with this Agreement.
4. The mediation procedure shall take place in the territory of the Party to which the request to enter into a mediation procedure was addressed or, by mutual agreement, in any other location or by any other means of communication.
5. The Parties shall endeavour to reach a mutually agreed solution within 60 days after the appointment of the mediator. In reaching such solution, the Parties may consider the completion of any necessary internal procedures. Pending a final agreement, the Parties may consider possible interim solutions, in particular if the measure relates to perishable goods.
6. On request of either Party, the mediator shall deliver a draft factual report to the Parties providing:
(a) a brief summary of the measure at issue;
(b) the procedures followed; and
(c) any mutually agreed solution reached, including any possible interim solutions.
7. The mediator shall allow the Parties 15 days to comment on the draft factual report. After considering the comments of the Parties, the mediator shall, within 15 days, deliver a final factual report to the Parties. The factual report shall not include any interpretation of this Agreement.
8. The procedure shall be terminated:
(a) by the adoption of a mutually agreed solution by the Parties, on the date of the adoption thereof;
(b) by mutual agreement of the Parties at any stage of the procedure, on the date of that agreement;
(c) by a written declaration of the mediator, after consultation with the Parties, that further efforts at mediation would be to no avail, on the date of that declaration; or
(d) by a written declaration of a Party after having explored mutually agreed solutions under the mediation procedure and after having considered any advice and proposed solutions by the mediator, on the date of that declaration.
ARTICLE 31.30
Confidentiality
1. Unless the Parties agree otherwise, all steps of the mediation procedure, including any advice or proposed solution, are confidential. Each Party may disclose to the public the fact that mediation is taking place.
2. If agreed by the Parties, mutually agreed solutions shall be made publicly available. The version disclosed to the public shall not contain any information a Party has designated as confidential.
ARTICLE 31.31
Relation to Dispute Settlement Procedures
1. The mediation procedure is without prejudice to the Parties' rights and obligations under Sections B and C or dispute settlement procedures under any other agreement. For greater certainty, a mediation procedure may be initiated or continue while panel procedures are in progress.
2. A Party shall not rely on or introduce as evidence in other dispute settlement procedures under this Agreement or any other agreement, nor shall a panel take into consideration:
(a) positions taken by the other Party in the course of the mediation procedure or information exclusively gathered in accordance with paragraph 2 of Article 31.29;
(b) the fact that the other Party has indicated its willingness to accept a solution to the measure subject to mediation; or
(c) advice given or proposals made by the mediator.
3. Unless the Parties agree otherwise, a mediator shall not serve as a panellist in dispute settlement procedures under this Agreement or under any other agreement involving the same matter for which he or she has been a mediator.
SECTION E
Common Provisions
ARTICLE 31.32
Request for Information
1. Before a request for consultations or mediation is made pursuant to Article 31.5 or 31.27, respectively, a Party may request information regarding a measure adversely affecting trade or investment between the Parties. The Party to which such request is made shall, within 20 days after the receipt of the request, deliver a written response with its comments on the requested information.
2. A Party is normally expected to request information pursuant to paragraph 1 prior to requesting consultations or initiating a mediation procedure or the other relevant cooperation or consultations procedures under this Agreement.
ARTICLE 31.33
Mutually Agreed Solution
1. The Parties may reach a mutually agreed solution at any time with respect to any dispute covered by Article 31.2.
2. If a mutually agreed solution is reached during the panel or mediation procedure, or during any other alternative means of dispute resolution agreed by the Parties, including procedures involving good offices or conciliation, the Parties shall jointly notify that solution to the chairperson of the panel or the mediator, as the case may be. Upon such notification, the panel or mediation procedure shall be terminated.
3. Each Party shall take measures necessary to implement the mutually agreed solution within the agreed time period.
4. No later than the date of expiry of the agreed time period, the implementing Party shall inform the other Party, in writing, of any measure that it has taken to implement the mutually agreed solution.
ARTICLE 31.34
Time Periods
1. All time periods set out in this Chapter shall be counted in calendar days from the day following that on which the act referred to occurred.
2. Any time period referred to in this Chapter may be modified by mutual agreement of the Parties.
3. Under Section C, the panel may at any time propose to the Parties to modify any time period referred to in this Chapter, stating the reasons for the proposal.
ARTICLE 31.35
Costs
1. Each Party shall bear its own expenses derived from the participation in the panel or mediation procedure.
2. The Parties shall be jointly liable for the expenses derived from organisational matters, including the remuneration and expenses of the panellists and of the mediator, and shall share them equally. The remuneration of the panellists shall be determined in accordance with the Rules of Procedure in Annex 31-A. The remuneration of the mediator shall be determined in accordance with that provided for a chairperson of a panel in accordance with the Rules of Procedure in Annex 31-A.
ARTICLE 31.36
Administration of the Dispute Settlement Procedure
1. Each Party shall:
(a) designate an office which shall be responsible for the administration of the dispute settlement procedures under this Chapter; and
(b) notify the other Party in writing of the office's location and contact information within three months after the entry into force of this Agreement.
2. Each Party shall be responsible for the operation and costs of its respective designated office.
3. Notwithstanding paragraph 1, the Parties may agree to jointly entrust an external body with providing support for certain administrative tasks for the dispute settlement procedure under this Chapter.
ARTICLE 31.37
Private Rights
A Party shall not provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.
ARTICLE 31.38
Modification of Annexes
The Joint Council may modify Annexes 31-A (Rules of Procedure) and 31-B (Code of Conduct for Panellists and Mediators).
Chapter 32. EXCEPTIONS
ARTICLE 32.1
General Exceptions
1. Article XX of GATT 1994, including its Notes and Supplementary Provisions, is incorporated into and made part of this Agreement, and applies mutatis mutandis to Chapters 2 (Trade in Goods), 3 (Rules of Origin and Origin Procedures), 4 (Customs and Trade Facilitation), 6 (Sanitary and Phytosanitary Measures), 8 (Energy and Raw Materials), 9 (Technical Barriers to Trade), 22 (State‑Owned Enterprises, Enterprises Granted Special Rights or Privileges and Designated Monopolies), and Section B of Chapter 10 (Liberalisation of Investments),
2. The Parties share the understanding that:
(a) the measures referred to in Article XX (b) of GATT 1994 include environmental measures 90 , which are necessary to protect human, animal or plant life or health; and
(b) Article XX (g) of GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources.
3. If a Party intends to take any measures in accordance with Article XX (i) and (j) of GATT 1994, that Party shall provide the other Party with:
(a) all relevant information; and
(b) upon request, a reasonable opportunity for consultation with respect to any matter related to such measure, with a view to seeking a mutually acceptable solution.
The Parties may agree on any means necessary to resolve the matters subject to consultation referred to in subparagraph 3(b).
If exceptional and critical circumstances requiring immediate action make prior information or consultation impossible, the Party intending to take the measures concerned may immediately take the measures necessary to address those circumstances and shall immediately inform the other Party thereof.
4. Article XIV (a), (b) and (c) of GATS is incorporated into and made part of this Agreement, and applies mutatis mutandis to Chapters 11 (Cross-Border Trade in Services), 12 (Temporary Presence of Natural Persons for Business Purposes), 13 (Domestic Regulation), 14 (Mutual Recognition of Professional Qualifications), 16 (Telecommunications services), 17 (International Maritime Transport Services), 18 (Financial Services), 19 (Digital Trade), 22 (State-Owned Enterprises, Enterprises Granted Special Rights or Privileges and Designated Monopolies) and in Section B of Chapter 10 (Liberalisation of Investments).
5. The Parties share the understanding that the measures referred to in Article XIV (b) of GATS include environmental measures 91 necessary to protect human, animal or plant life or health.
6. For greater certainty, Article 2.8 (Security Exception) of Part IV is deemed to be a provision of Part III.
ARTICLE 32.2
Taxation
1. For the purposes of this Article:
(a) "residence" means residence for tax purposes; and
(b) "tax convention" means a convention for the avoidance of double taxation or any other international agreement or arrangement relating wholly or mainly to taxation to which either Party is party.
2. Nothing in this Part of the Agreement shall affect the rights and obligations of a Party under a tax convention. In the event of any inconsistency between this Agreement and any tax convention, the tax convention shall prevail to the extent of the inconsistency.
3. Articles 10.8 (Most-Favoured-Nation Treatment), 11.7 (Most-Favoured-Nation Treatment), 18.4 (Most-Favoured Nation-Treatment) and paragraph 4 of Article 18.7 (Cross Border Trade in Financial Services) do not apply to an advantage accorded by a Party pursuant to a tax convention.
4. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between the Parties, if like conditions prevail, or a disguised restriction on trade and investment, nothing in this Agreement shall be construed as preventing a Party from adopting, maintaining or enforcing any measure aimed at ensuring the equitable or effective imposition or collection of direct taxes that:
(a) distinguish between taxpayers, who are not in the same situation, in particular with regard to their place of residence or the place where their capital is invested; or
(b) aim at preventing the avoidance or evasion of taxes pursuant to the provisions of any tax convention or domestic tax legislation.
5. For greater certainty, the fact that a taxation measure constitutes a significant amendment to an existing taxation measure, takes immediate effect as of its announcement, clarifies the intended application of an existing taxation measure, or has an unexpected impact on an investor or covered investment, does not, in and of itself, constitute a violation of Article 10.15 (Treatment of Investors and Covered Investments).
6. If an investor submits a request for consultations pursuant to Article 10.22 (Consultations) claiming that a taxation measure breaches an obligation pursuant to paragraph 2 of Article 10.7 (National Treatment) or paragraph 2 of Article 10.8 (Most-Favoured-Nation Treatment) or pursuant to Section C of Chapter 10 (Investment Protection), the respondent may refer the matter for consultation and joint determination by the Parties as to whether:
(a) the measure is a taxation measure;
(b) the measure, if it is found to be a taxation measure, breaches an obligation in paragraph 2 of Article 10.7 (National Treatment) or paragraph 2 of Article 10.8 (Most-Favoured-Nation Treatment) or Section C of Chapter 10 (Investment Protection); or
(c) there is an inconsistency between the obligations in this Agreement that are alleged to have been breached and those of a tax convention.
7. A referral pursuant to paragraph 6 cannot be made later than the date that the Tribunal determines for the respondent to submit its counter-memorial or statement of defence. If the respondent makes such a referral, the time periods or proceedings specified in Section D of Chapter 10 (Resolution of Investment Disputes) shall be suspended. If within 180 days after the referral the Parties do not agree to consider the issue, or fail to make a joint determination, the suspension of the time periods or proceedings shall no longer apply and the investor may proceed with its claim.
8. A joint determination by the Parties pursuant to paragraph 6 shall be binding on the Tribunal.
9. Each Party shall ensure that its delegation for the consultations to be conducted pursuant to paragraph 6 shall include persons with relevant expertise on the issues covered by this Article, including representatives from the relevant tax authorities 92 of each Party.
ARTICLE 32.3
Disclosure of Information
1. Nothing in this Agreement shall be construed as requiring a Party to make available confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
2. The disclosure of information throughout the dispute settlement proceedings under this Part of the Agreement shall be governed by the provisions of the applicable chapters.
3. When a Party submits information to the other Party under this Agreement, including through the bodies established under this Agreement, which is considered as confidential under the laws and regulations of the submitting Party, the other Party shall treat that information as confidential, unless the submitting Party agrees otherwise.
ARTICLE 32.4
WTO Waivers
If a right or obligation established by a provision of this Part of the Agreement duplicates one in the WTO Agreement, any measure taken in conformity with a waiver decision adopted pursuant to paragraphs 3 and 4 of Article IX of the WTO Agreement is deemed to be in conformity with the provision in this Agreement.
(1) For the purposes of this definition, the terms "subsidiaries", "branches" and, where applicable, "affiliates" have the meaning for a Party as defined by its law.(2) For Mexico, the general rules, acts or omissions of the Telecommunication Regulatory Commission (Comisión Reguladora de Telecomunicaciones (CRT)) may only be challenged through an indirect amparo trial before federal courts specialised in competition, broadcasting and telecommunications and shall not be subject to a suspension order.(3) Administrative fees do not include payments for rights to use scarce resources and mandated contributions to universal service provision.(4) For Mexico, the general rules, acts or omissions of the Telecommunication Regulatory Commission (Comisión Reguladora de Telecomunicaciones (CRT)) may only be challenged through an indirect amparo trial before federal courts specialised in competition, broadcasting and telecommunications and shall not be subject to a suspension order.(5) Nothing in this paragraph shall preclude a Party from requiring that a major supplier provides interconnection at cost-oriented rates. "Cost-oriented rates" means rates based on cost, which may include a reasonable profit, and may involve different cost methodologies for different facilities or services.(6) The Parties recognise that the term "prudential reasons" includes the maintenance of the safety, soundness, integrity or financial responsibility of individual financial service suppliers.(7) The competent authorities can meet this requirement by informing an applicant in advance in writing, including through a published measure, that lack of response after a specified period of time from the date of submission of the application indicates either acceptance or rejection of the application. For greater certainty, informing in writing may include in electronic form.(8) For greater certainty, that opportunity does not require a competent authority to grant an extension of deadlines.(9) Authorisation fees include licensing fees and fees relating to qualification procedures. They do not include fees for the use of natural resources, payments for auction, tendering or other non-discriminatory means of awarding concessions, or mandated contributions to universal service provision.(10) This provision does not apply to contracts:(a) that create or transfer rights in real estate;(b) requiring by law the involvement of courts, public authorities or professions exercising public authority;(c) of suretyship granted and contracts on collateral securities furnished by persons acting for purposes outside their trade, business, craft or profession, as required by law; and(d) governed by family law or by the law of succession.(11) In the case of the European Union, those measures may be taken by a Member State of the European Union in situations other than those referred to in Article 20.4, which affect the economy of that Member State.(12) For greater certainty, serious balance-of-payments or external financial difficulties, or threat thereof, as referred to in subparagraph 1(a) may be caused among other factors by serious macroeconomic difficulties related to monetary and exchange rate policies, or threat thereof, as referred to in subparagraph 1(b).(13) The first exchange of information shall take place one year after the entry into force of this Agreement.(14) For greater certainty, this excludes activities undertaken by an enterprise: (a) which operates on a not-for-profit basis; or (b) which operates on a cost recovery basis.(15) For greater certainty, this Chapter does not apply to natural monopolies unless they are designated within the meaning of subparagraph 1(d).(16) For greater certainty, services supplied in the exercise of governmental authority include services supplied by a central bank, a monetary authority, a financial regulatory body or a resolution authority of a Party.(17) For the establishment of ownership or control, all relevant legal and factual elements shall be examined on a case-by-case basis.(18) This includes carrying out a legitimate public service mandate.(19) For greater certainty: a) the term "resolution" is interpreted in accordance with the law of the Party in which the financial institution or other legal entity is established, b) the financial institution or other legal entity does not engage in any commercial activity which is not directly related to its resolution purposes.(20) If no comparable financial services are offered in the commercial market: (a) for the purposes of subparagraphs (a)(ii) and (b)(ii), the state-owned enterprise may rely as necessary on available evidence to establish a benchmark of the terms on which such services would be offered in the commercial market; and (b) for the purposes of subparagraphs (a)(i) and (b)(i), the supply of the financial services shall be deemed not to be intended to displace commercial financing.(21) For greater certainty, the only forum to determine whether a measure of a Party is applied in accordance with that Party's rights and obligations under the WTO Agreement is the dispute settlement mechanism under the DSU.(22) For greater certainty, this Article does not apply with respect to the purchase or sale of shares, stock or other forms of equity by a state-owned enterprise, an enterprise granted special rights or privileges or a designated monopoly as a means of its equity participation in another enterprise.(23) For greater certainty, the impartiality with which the regulatory body or competent authority exercises its regulatory functions is to be assessed by reference to a general pattern or practice of that regulatory body or competent authority.(24) For greater certainty, for those sectors in which the Parties have agreed to specific obligations relating to the regulatory body or competent authority in other Chapters, the relevant provision in those other Chapters shall prevail.(25) For greater certainty, the term "practices" does not include the reasons for an appointment, dismissal or remuneration of senior executives and members of the board of directors or any other equivalent body.(26) For greater certainty, competition law in the EU applies to the agricultural sector in accordance with Regulation 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007, OJ L 347, 20.12.2013, p. 671. For greater certainty, the Ley Federal de Competencia Económica (Federal Economic Competition Law), published in the Diario Oficial de la Federación (Official Journal of the Federation) on 23 May 2014, applies to all sectors in Mexico for which the competition authorities elaborate their own regulations, criteria or guidelines in accordance with the 2013 Constitutional amendments, published in the Diario Oficial de la Federación (Official Journal of the Federation) on 11 June 2013.(27) For the purposes of this Article, an enforcement procedure means a judicial or administrative procedure following an investigation into the alleged violation of the competition law.(28) This definition is without prejudice to the outcome of future discussions in the WTO on the definition of subsidies for services. Depending on the progress of those discussions, the Joint Council may adopt a decision to adapt this Agreement in this respect.(29) Subparagraph 1(d) applies to subsidies of 500 000 special drawing rights and above.(30) For greater certainty, the publication of a subsidy or subsidy programme on the website does not prejudge its legal status or the nature of the program itself.(31) For greater certainty, a Party is deemed to fulfil this obligation if it has set up the appropriate legislative framework and administrative procedures to that effect.(32) For the purposes of this Chapter, the definition of nationals in the TRIPS Agreement applies.(33) For the purposes of this provision, "protection" shall include matters affecting the availability, acquisition, scope, maintenance and enforcement of intellectual property rights as well as those matters affecting the use of intellectual property rights specifically addressed in this Chapter.(34) This is without prejudice to Article 11 of the Rome Convention.(35) "Fixation" means the embodiment of sounds or moving images, or of the representation thereof, from which they can be perceived, reproduced or communicated by means of a device.(36) For Mexico this provision is without prejudice to the requirement to comply with its obligations under its Telecommunication and Broadcasting Law ("Ley en Materia de Telecomunicaciones y Radiodifusión"), as published in the Official Journal on 16 July 2025.(37) Each Party may grant to performers and producers of phonograms more extensive rights as regards the broadcasting and communication to the public of phonograms published for commercial purposes.(38) For the purpose of this Article, "communication to the public" does not include the making available to the public of a phonogram, by wire or wireless means, in such a way that members of the public may access it from a place and at a time individually chosen by them.(39) A Party may decide that the application of this paragraph requires that both contributions were specifically created for the respective musical composition with words.(40) A Party may decide that the music must be specifically created for the use in the cinematographic or audiovisual work.(41) For greater certainty, each Party shall choose between the option referred to in subparagraphs (a) and (b) or the alternative referred to in subparagraphs (c) and (d), based on its domestic legislation.(42) A Party may express this participation as a percentage of the resale price.(43) A Party may establish minimum conditions for the application of the resale right.(44) Each Party shall make all reasonable efforts to adopt an adversarial procedure for the opposition.(45) A Party may provide that the entitlement of the proprietor of the trademark shall lapse if, during the proceedings to determine whether there was a breach of the registered trademark, evidence is provided by the declarant or the holder of the goods that the proprietor of the registered trademark is not entitled to prohibit the placing of the goods on the market in the country of final destination.(46) For greater certainty, a Party may define cancellation as revocation, expiration or nullity.(47) A Party may require that the use is of genuine character or made in a quantity or manner corresponding to commercial use. A Party may further decide to disregard the commencement or resumption of use just before the filing of the cancellation request.(48) For greater certainty, a Party may also cancel a trademark if, as a consequence of the use made of it by the proprietor of the trademark or with his consent in respect of the goods or services for which it is registered, it is liable to mislead the public.(49) The fair use of descriptive terms includes the use of a sign to indicate the geographic origin of the goods or services, where such use is in accordance with honest practices in industrial or commercial matters.(50) If the law of a Party so provides, individual character of industrial designs may also be required.(51) The Parties recognise that, for the purpose of assessment of trademark applications, insofar as this is relevant under the law of a Party, those names are protected in the country of origin.(52) As regards the list of geographical indications set out in Annex 25-B (List of Geographical Indications), the protection provided in accordance with this Article does not cover individual terms which are part of a compound geographical indication name as set out in Appendix 25‑B-1 (Individual Terms as Part of a Compound Geographical Indication).(53) For the purposes of this subparagraph, the authorities of a Party may take into account, as appropriate, whether the term is used in relevant international standards recognised by the Party to refer to a type or class of good in the territory of the Party.(54) For greater certainty, this includes all past and future amendments of the Spirits Agreement.(55) Mexico may make those technical specifications publicly available in Spanish or English.(56) Mexico shall implement the obligations provided for in this Article no later than two years after the entry into force of this Agreement.(57) Each Party shall determine which products fall under the terms "pharmaceutical products" and "biologic products" in accordance with its law in place on 21 April 2018.(58) For greater certainty, the term "marketing approval" is equivalent to the term "marketing authorisation".(59) For the purposes of this Article, an unreasonable delay includes at least a delay of more than two years in the first response to the applicant following the date of filing of the application for marketing approval. Any delays that occur in the granting of a marketing approval due to periods attributable to the applicant or any period that is out of control of the marketing approval authority need not be included in the determination of such delay.(60) If a Party complies with this paragraph, that Party is not obliged to comply with the alternative provided in paragraph 3.(61) This period can be extended for six months in the case of pharmaceutical products if paediatric studies have been carried out and the results of those studies are reflected in the product information.(62) Mexico shall implement this provision no later than four years after the date of entry into force of this Agreement.(63) For greater certainty, a Party may provide those legal means through criminal procedures in accordance with its law.(64) A Party may consider not to apply these procedures if the conduct contrary to honest commercial practices is carried out, in accordance with its law, with a view to revealing misconduct, wrongdoing or an illegal activity or for the purpose of protecting a legitimate interest recognised by its law.(65) For greater certainty, the criteria provided in the laws and regulations of each Party contain the breach of a duty to limit the use of a trade secret.(66) For greater certainty, the European Union considers that the following situations do not fall under paragraph 2:(a) independent discovery or creation by a person of the relevant information;(b) reverse engineering of a product by a person who is lawfully in possession of it and who is free from any legally valid duty to limit the acquisition of the relevant information;(c) acquisition, use or disclosure of information required or allowed by the law of a Party;(d) use by employees of their experience and skills honestly acquired in the normal course of their employment; or(e) disclosure of information in the exercise of the right to freedom of expression and information.(67) Mexico shall implement this obligation no later than two years after the entry into force of this Agreement.(68) For the purposes of this Article, the term "new" implies that the products contain a new chemical entity that has not been previously approved in the territory of the Party or refers to a new biologic or biotechnological product that has not been previously approved in the territory of the Party.(69) Each Party shall determine which products fall under the terms "pharmaceutical products" and "biologic products" in accordance with its law in place on 21 April 2018.(70) For the purposes of this paragraph, a Party may provide that the term "product" refers to the same or a similar product.(71) For greater certainty, this includes data submitted for authorisations granted to the person that submitted such information in the territories of the Parties and of third countries.(72) For greater certainty, a Party may limit the period of protection under this paragraph to six years.(73) A Party may provide that, for biologic products, the protection of undisclosed data referred to in this Article applies only to the first marketing approval of the new biologic product.(74) Mexico shall implement this obligation no later than two years after the entry into force of this Agreement.(75) For purposes of this article, the term "marketing approval" is synonymous with "sanitary approval" under the law of a Party.(76) For purposes of this article, the term "new" implies that the product contains a new chemical entity that has not been previously approved in the territory of the Party.(77) For greater certainty, this Article applies to cases in which the Party requires the submission of undisclosed test or other data concerning only the safety of the product, only the efficacy of the product or both.(78) For greater certainty, a Party may limit the period of protection pursuant to this Article to 10 years.(79) Mexico may limit that authority to criminal procedures, in accordance with its law.(80) The European Union may decide that:(a) "any other person" means a person who was:(i) found in possession of the infringing goods on a commercial scale;(ii) found to be using the infringing services on a commercial scale;(iii) found to be providing on a commercial scale services used in infringing activities; or(iv) indicated by the person referred to in subparagraph (i) to (iii) as being involved in the production, manufacture or distribution of the infringing goods or the provision of the infringing services;(b) "information" shall, as appropriate, comprise:(i) the names and addresses of the producers, manufacturers, distributors, suppliers and other previous holders of the goods or services, as well as the intended wholesalers and retailers; or(ii) information on the quantities produced, manufactured, delivered, received or ordered, as well as the price obtained for the goods or services in question.(81) Mexico may limit the authority to order the communication of bank, financial or commercial documents to criminal procedures in accordance with its law. Each Party may limit this authority to infringements committed on a commercial scale and situations where the applicant demonstrates the existence of circumstances likely to endanger the recovery of damages.(82) A Party may provide that the initiation of a procedure to claim damages is not subject to a final finding of a violation of intellectual property rights.(83) For the purposes of this chapter, the term "labour" means the strategic objectives of the ILO under the Decent Work Agenda, which is expressed in the ILO Declaration on Social Justice for a Fair Globalization of 2008.(84) These instruments include, among others and as they may apply: the UN Convention on the Law of the Sea, the FAO Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas, the UN Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, and the FAO Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing.(85) For greater certainty, for the review and correction of an administrative action, a Party may require the exhaustion of the available administrative remedies.(86) For the European Union, such principles include those included in and derived from the TFEU.(87) For greater certainty, a "major regulatory measure" means a measure that has a significant regulatory impact as determined by each Party, in accordance with its rules and procedures.(88) For greater certainty, this provision is without prejudice of the provisions in Chapter 10 (Investment) and Chapter 11 (Cross-Border Trade in Services) and the annexes thereto and does not include any right that results from the grant of an exclusive intellectual property right.(89) For greater certainty, any act or omission attributable to a Party can be a measure of that Party for the purposes of this Chapter. A proposed measure of a Party may be the subject of consultations under Article 31.5. A panel shall not be established to review a proposed measure.(90) The Parties acknowledge the right to invoke Article XX (b) of GATT 1994 in relation to measures taken pursuant to multilateral environmental agreements to which they are party.(91) The Parties acknowledge the right to invoke Article XIV (b) of GATS in relation to measures taken pursuant to multilateral environmental agreements to which they are party.(92) For Mexico, "representatives from the relevant tax authorities" means officials from the Ministry of Finance and Public Credit.Top
Part IV. INSTITUTIONAL AND FINAL PROVISIONS (1)
Chapter 1. INSTITUTIONAL FRAMEWORK
ARTICLE 1.1
Summit
1. The highest level of political and policy dialogue between the Parties shall be at Summit level. Summits shall be held on a biennial basis or as mutually agreed.
2. The summit shall provide overall guidance for the strategic partnership between the Parties and for the implementation of this Agreement and shall provide a forum to discuss any bilateral, regional, bi-regional, or international matters of mutual interest.
ARTICLE 1.2
Joint Council
1. A Joint Council is hereby established. The Joint Council shall:
(a) oversee the fulfilment of the objectives of this Agreement;
(b) supervise the operation and implementation of this Agreement;
(c) examine any matters arising within the framework of this Agreement; and
(d) address any other bilateral or international issues of mutual interest.
2. The Joint Council shall meet at regular intervals, biennial or as mutually agreed.
3. The Joint Council shall be composed of representatives of the Parties at ministerial level, in accordance with the Parties' respective internal arrangements and taking into consideration the specific matters to be addressed at any given meeting. The Joint Council shall meet in all necessary configurations, by mutual agreement.
4. The Joint Council shall establish its own rules of procedure, and the rules of procedure of the Joint Committee.
5. The Joint Council shall be co-chaired by a representative of the European Union and a representative of Mexico, in accordance with the provisions laid down in its rules of procedure.
6. The Joint Council shall have the power to adopt decisions and recommendations, as appropriate, as provided for in this Agreement. Within the scope of Parts I, II and IV of this Agreement, the Joint Council shall also have the power to adopt decisions and recommendations as otherwise mutually agreed by the Parties. The decisions shall be binding on the Parties, which shall take all necessary measures to implement them.
7. The Joint Council shall have the power to amend this Agreement if so provided for in accordance with paragraph 2 of Article 2.4 (Amendments).
8. The Joint Council shall adopt decisions and recommendations by consent between the Parties in accordance with its rules of procedure, following the completion of their respective internal procedures necessary for the adoption. The decisions shall be binding on the Parties, which shall take all necessary measures to implement them.
9. The Joint Council may delegate to the Joint Committee any of its functions, including the power to take binding decisions.
ARTICLE 1.3
Joint Committee
1. A Joint Committee is hereby established. The Joint Committee shall assist the Joint Council in the performance of its functions.
2. The Joint Committee shall be responsible for the general implementation of this Agreement, including the definition and supervision of sectoral dialogues.
3. The Joint Committee shall prepare the meetings of the Joint Council.
4. The Joint Committee shall be composed of representatives of the Parties at senior official level or as otherwise designated by the Parties and taking into consideration the specific matters to be addressed at any given meeting.
