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EUROPEAN COMMISSION

Directorate-General for TradeDirectorate E – Neighbouring countries, USA and Canada

Brussels, 5 August 2014

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Trade Policy Committee

m.d. : 259/14source : Commissionfor : Informationdate : 05 - 08 - 2014

N

OTE FOR THE ATTENTION OF THE

T

RADE

P

OLICY

C

OMMITTEE

SUBJECT: CETA Consolidatedtext

ORIGIN:

Commission DG TRADE Dir. E.1Philipp Dupuis

Deputy Head of Unit, DG Trade E.1Tel: +32-2-299.20.76

philipp.dupuis@ec.europa.eu

Annette Grunberg

Policy Officer, DG Trade E.1Tel: +32-2-299.39.56

annette.grunberg@ec.europa.eu

OBJECTIVE: For Information

Following the political break-through of October last year, negotiators have now finishedtheir work and reached a complete outcome. Member States will find the full set of corresponding texts attached, including consolidated version of all chapters, annexes,declarations, understandings as well as side letters agreed with Canada. This is thecomplete outcome on the basis of which the EU and Canada will proceed with the legal

http://economia-ciudadana.blogspot.com/search/label/TTIP

LIMITEDscrubbing and translations, before submitting the Agreement to the Council for conclusion. In the meantime, an EU-Canada Summit is being planned for September.This document is Limited and should hence not be distributed outside the EU institutions.* * *


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Consolidated CETA Text

Version of 1 August 2014

Draft Table of Contents for a Consolidated CETA Text

[Note: the order of this table of content is a working table only for the purpose of producing the initial consolidated text; as such it is without prejudice to the finalorder to be discussed and agreed during legal scrubbing]1. PREAMBLE2. INITIAL PROVISIONS AND GENERAL DEFINITIONS



Annex: Amendments to Wines and Spirits Agreements3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS



Annex: Tariff Elimination (including schedules of tariff concessions)[schedules attached separately]4. RULES OF ORIGIN and ORIGIN PROCEDURES Protocol



Section A: General Provisions



Section B: Rules of Origin



Section C: Origin Procedures

o

Annex 1:

Product Specific Rules of Origin [attached separately]



Appendix 1:

Origin Quotas and Alternatives to the Product-Specific Rules of Origin

o

Annex 2:

Tolerance for Textile and Apparel Products

o

Annex 3:

Text of the Origin Declaration

o

Annex 4:

Supplier's Statement for Non-Originating Materials Used inthe Production of Non-Originating Products

o

Annex 5:

Matters Applicable to Ceuta and Mellila

5. TRADE REMEDIES6. TECHNICAL BARRIERS TO TRADE (TBT)



Annex: COOPERATION IN THE FIELD OF MOTOR VEHICLEREGULATIONS7. SANITARY AND PHYTOSANITARY MEASURES (SPS)



Annex I: Competent Authorities



Annex II: Regional Conditions



Annex III: Process of Recognition of Regional Conditions



Annex IV: Guidelines for the Determination, Recognition and Maintenanceof Equivalence


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Annex V: Recognition of Measures

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Annex VI: Approval of Establishments or Facilities

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Annex VII: Procedure Related to Specific Import Requirements for PlantHealth

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Annex VIII: Principles and Guidelines for Conducting an Audit orVerification

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Annex IX: Export Certification



Annex X: Import Checks and Fees8. CUSTOMS AND TRADE FACILITATION9. SUBSIDIES10. INVESTMENT



Annex: Exclusions from Dispute Settlement (per the ICA exclusion)



Annex: Indirect Expropriation



Declaration on IPR and Expropriation



Declaration Denial of Benefits and National Security Exception11. CROSS-BORDER TRADE IN SERVICES



Understanding on National Treatment (Internal Trade Agreements)



Understanding on New Services12. TEMPORARY ENTRY



Appendix A: EU Member States’ list of contact points



Appendix B: Member State-specific reservations and exceptions for keypersonnel and short-term business visitors



Appendix C: Equivalent Qualifications for Engineering Technologies andScientific Technologists



Appendix D: Short term business visitors’ activities



Annex: SECTORAL COMMITMENTS ON CONTRACTUAL SERVICESSUPPLIERS AND INDEPENDENT PROFESSIONALS



UNDERSTANDING ON SPOUSES13. MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONS



Annex: Guidelines for Agreements on the Mutual Recognition of Professional Qualifications14. DOMESTIC REGULATION15. FINANCIAL SERVICES



Annex X: Cross-Border Trade in Financial Services



Annex X: Guidance on Prudential Carve-Out



Annex X: Understanding on Dialogue in the Financial Services Sector


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16. INTERNATIONAL MARITIME TRANSPORT SERVICES17. TELECOMMUNICATIONS18. ELECTRONIC COMMERCE19. COMPETITION POLICY20. STATE ENTERPRISES, MONOPOLIES AND ENTERPRISES GRANTEDSPECIAL RIGHTS (MSE)21. GOVERNMENT PROCUREMENT



Appendix: Canada Market Access Offer [attached separately]



Appendix: EU Market Access Offer [attached separately]22. INTELLECTUAL PROPERTY



Annex I: Geographical Indications identifying a product originating in theEU (Part A) or in Canada (Part B)



Annex II: Terms referred to in Articles X.6.11 and X.6.12



Annex III: Product Classes23. TRADE AND SUSTAINABLE DEVELOPMENT24. TRADE AND LABOUR 25. TRADE AND ENVIRONMENT26. REGULATORY COOPERATION27. PROTOCOL ON THE MUTUAL ACCEPTANCE OF THE RESULTS OFCONFORMITY ASSESSMENT



Annex I: Product Coverage



Annex II: Priority categories of goods for consideration for inclusion inAnnex I pursuant to Article 1(2)



Annex III: Information to be Included as part of a Designation28. PROTOCOL ON THE GOOD MANUFACTURING PRACTICES FOR PHARMACEUTICAL PRODUCTS29. DIALOGUES AND BILATERAL COOPERATION



ENHANCED COOPERATION ON SCIENCE, TECHNOLOGY,RESEARCH & INNOVATION (STRI)



BILATERAL DIALOGUE ON RAW MATERIALS



BILATERAL COOPERATION ON BIOTECHNOLOGY



BILATERAL DIALOGUE ON FOREST PRODUCTS


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30. ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS31. TRANSPARENCY32. EXCEPTIONS33. DISPUTE SETTLEMENT



Annex I: Rules of Procedure for Arbitration



Annex II: Code of Conduct for Members of Arbitration Panels andMediators Definitions



Annex III: Mediation Procedure34. FINAL PROVISIONS35. SERVICES AND INVESTMENT



Reservations Annexes (I and II) [attached separately]



FS: Market Access Offer Annex [attached separately]36. Joint Declarations Concerning the Principality of Andorra and the Republic of SanMarino37. Declaration on TRQ Administration38. Declaration Concerning Rules of Origin for Textiles and Apparel39. Declaration on the ICA40. Joint Declaration41. Declaration on Wines and Spirits42. Understanding on Courier Services

Side letters are attached separately


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1. PREAMBLECANADA EU CETA PREAMBLE TEXTThe parties resolve toDESIRE

to further strengthen their close economic relationship and build on their respectiverights and obligations under the

Marrakesh Agreement Establishing the World TradeOrganization

and other multilateral and bilateral instruments of cooperation;

CREATE

an expanded and secure market for their goods and services through the reduction or elimination of barriers to trade and investment;

ESTABLISH

clear, transparent and predictable mutually advantageous rules to govern their trade and investment;

REAFFIRMING

their commitment to promote sustainable development and the developmentof international trade in such a way as to contribute to sustainable development in its economic,social and environmental dimensions;

DETERMINED

to implement this Agreement in a manner consistent with the enhancement of the levels of labour and environmental protection and the enforcement of their labour andenvironmental laws and policies, building on their international commitments on labour andenvironment matters;

ENCOURAGE

enterprises operating within their territory or subject to their jurisdiction torespect internationally recognized standards and principles of corporate social responsibility,notably the OECD Guidelines for multinational enterprises and to pursue best practices of responsible business conduct;AND,

RECOGNIZING

that the protection of investments, and investors with respect to their investments, stimulates mutually beneficial business activity;

RECOGNIZING

the importance of international security, democracy, human rights and the ruleof law for the development of international trade and economic cooperation;

REAFFIRMING

their strong attachment to democracy and to fundamental rights as laid downin the Universal Declaration of Human Rights and sharing the view that the proliferation of weapons of mass destruction poses a major threat to international security;

RECOGNIZING

that the provisions of this Agreement preserve the right to regulate withintheir territories and resolving to preserve their flexibility to achieve legitimate policy objectives,such as public health, safety, environment, public morals and the promotion and protection of cultural diversity; and


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AFFIRMING

their commitments as Parties to the UNESCO Convention on the Protection andPromotion of the Diversity of Cultural Expressions and recognizing that states have the right to preserve, develop and implement their cultural policies, and to support their cultural industriesfor the purpose of strengthening the diversity of cultural expressions, and preserving their cultural identity, including through the use of regulatory measures and financial support.

RECOGNIZING

the strong link between innovation and trade, and the importance of innovation to future economic growth, Canada and the European Union affirm their commitmentto encourage the expansion of cooperation in the area of innovation, as well as the related areasof research and development, and science and technology, and promoting the involvement of relevant public and private sector entities;

HAVE AGREED

as follows:


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Initial Provisions and General Definitions

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2. INITIAL PROVISIONS AND GENERAL DEFINITIONS

INITIAL PROVISIONS AND GENERAL DEFINITIONS

Section A – General Definitions[Article X.01: Definitions of General Application

For purposes of this Agreement, unless otherwise specified:

Commission

means the Trade Commission established under Article X.01 (Administration of the Agreement);

Coordinators

means the Agreement Coordinators established under Article X.02(Administration of the Agreement);

customs duty

includes a customs or import duty and a charge of any kind imposed on or inconnection with the importation of a good, including a form of surtax or surcharge in connectionwith that importation, but does not include a:(a) charge equivalent to an internal tax imposed consistently with Article III:2 of theGATT 1994, in respect of like, directly competitive or substitutable goods of theParty, or in respect of goods from which the imported good has beenmanufactured or produced in whole or in part;(b) anti-dumping or countervailing duty that is applied pursuant to a Party’s domesticlaw;(c) fee or other charge in connection with importation commensurate with the cost of services rendered; and(d) premium offered or collected on an imported good arising out of any tenderingsystem in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels;

Customs Valuation Agreement

means the WTO

Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994

;

days

means calendar days, including weekends and holidays;

enterprise

means an entity constituted or organized under applicable law, whether or not for profit, and whether privately owned and controlled or governmentally owned and controlled,including a corporation, trust, partnership, sole proprietorship, joint venture or other association;

existing

means in effect on the date of entry into force of this Agreement;


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GATS

means the WTO

General Agreement on Trade in Services

;

GATT 1994

means the WTO

General Agreement on Tariffs and Trade 1994

;

goods of a Party

means domestic products as these are understood in the GATT 1994 or suchgoods as the Parties may agree, and includes originating goods of that Party;

Harmonized System

(HS) means the

Harmonized Commodity Description and Coding System

,including its General Rules of Interpretation, Section Notes, Chapter Notes and subheadingnotes;

heading

means a four-digit number, or the first four digits of a number, used in the nomenclatureof the Harmonized System;

measure

includes a law, regulation, procedure, requirement or practice;

national

means a natural person who is a citizen according to Article X.02, or is a permanentresident of a Party;

originating

means qualifying under the rules of origin set out in [Chapter] X (Rules of Origin);

Negotiators’note: Institutional leadsagreedonNov29, 2012tousethetermProtocol for thetextonRulesof Origin.

person

means a natural person or an enterprise;

person of a Party

means a national, or an enterprise of a Party;

preferential tariff treatment

means the application of the respective duty rate under thisAgreement to an originating good, pursuant to the tariff elimination schedule;

sanitary or phytosanitary measure

means a measure referred to in Annex A, paragraph 1 of the

SPS Agreement

;

SCM Agreement

means the WTO

Agreement on Subsidies and Countervailing Measures

;

SPS Agreement

means the WTO

Agreement on the Application of Sanitary and Phytosanitary Measures

;

state enterprise

means an enterprise that is owned, or controlled through ownership interests, bya Party;

subheading

means a six-digit number, or the first six digits of a number, used in thenomenclature of the Harmonized System;

tariff classification

means the classification of a good or material under a chapter, heading or subheading of the Harmonized System;


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concerning the tariff treatment of goods, this Agreement shall also apply to thoseareas of the EU customs territory not covered by the first sentence.]

EU notefor legal scrubbing: clarifytheneedfor aclauselinking thistoterritory, e.g. " References to" territory" in this Agreementshallbeunderstoodin this sense, unlessexplicitlystatedotherwise" ? Negotiators’notefor legal scrubbing: Thecoherenceof thedefinitionsinthisSectionwith thedefinitionsin thespecificchapters needstobeverified. ThePartiesagreethat in thecourseof thelegalreviewcertaindefinitionsmaybemovedtoor fromspecific chapters. Inprincipleall definitionsaffecting morethan onechapter shouldbehere.


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Section B – Initial ProvisionsArticle X.03: Establishment of the Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the GATT 1994 andArticle V of the GATS, hereby establish a free trade area.

Article X.04: Relation to Other Agreements

1. The Parties affirm their rights and obligations with respect to each other under the WTOAgreement and other agreements to which the Parties are party.2. [Others to be determined.]

[Negotiators’notefor legal scrubbing: verifywhether theclauseintheSPS chapter on theterminationof theEU-CanadaVeterinaryAgreementis tobemovedhere.]

Article X.05: Incorporation of Wines and Spirits Agreements

1. The Agreement between the European Economic Community and Canada concerningTrade and Commerce in Alcoholic Beverages, done at Brussels February 28, 1989, assubsequently amended, (the 1989 Agreement) and the Agreement between the EuropeanCommunity and Canada on Trade in Wines and Spirit Drinks, done at Niagara-on-the-Lake,September 16, 2003 (the 2003 Agreement) are incorporated into and made part of thisAgreement, as amended by Annex X.05.

[EU note to legal scrub from e-mail of Jan 10, 2013:

European Economic Community" willhave to be changed in "European Union", except where reference is made to titles of existingAgreements (such as the wine and spirits Agreements of 1989 and 2003).]2. In the event of any inconsistency between a provision of the 1989 or 2003 Agreement, asamended and incorporated into this Agreement, and any other provision of this Agreement, sucha provision of the 1989 or 2003 Agreement prevails to the extent of the inconsistency.

Article X.06: Extent of Obligations

1. Each Party is fully responsible for the observance of all provisions of this Agreement.2. Each Party shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance, at all levels of government.

Negotiators' Notefor legal scrubbing: Mayneedtoreviewterminologywith respectto'levelsof government'.


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Article X.07: Reference to Other Agreements

Where this Agreement refers to or incorporates by reference other agreements or legalinstruments in whole or in part, such references include related footnotes, interpretative andexplanatory notes. Except where the reference affirms existing rights, such reference alsoincludes, as the case may be, successor agreements to which the Parties are party or amendments binding on the Parties.

EU notefor legal scrubbing: verifythecoherencewith thedrafting in therelevantprovisions.

Article X.08: Rights and Obligations Relating to Water

1. The Parties recognize that water in its natural state, such as water in lakes, rivers, reservoirs,aquifers and water basins, is not a good or a product and therefore, except for Chapter XX – Trade and Environment and Chapter XX – Sustainable Development, is not subject to the termsof this Agreement.2. Each Party has the right to protect and preserve its natural water resources and nothing in thisAgreement obliges a Party to permit the commercial use of water for any purpose, including itswithdrawal, extraction or diversion for export in bulk.3. Where a Party permits the commercial use of a specific water source, it shall do so in amanner consistent with the Agreement.

Article X.09: Persons Exercising Delegated Government Authority

Unless otherwise specified in this Agreement, each Party shall ensure that a person that has beendelegated regulatory, administrative or other governmental authority by a Party at any level of government acts in accordance with the Party’s obligations as set out under this Agreement inthe exercise of that authority.


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Annex X.05 – Amendments to Wines and Spirits AgreementsSection 1

The 2003 Agreement shall be amended as follows:a) Article 27(3), first indent, shall read "- adopting amendments to the Annexes of thisAgreement by means of a decision."

[Note for Institutional Leads

: CN and EU Wine and Spirits table leads agree that the word“decision” can be replaced with the most expansive approach agreed to at the institutional tablefor amending Annexes.] b) Title VIII to be deletedc) Article 8(1) – last 2 sentences- shall read as follows: "Either Contracting Party mayseek consultations provided for in CETA Article 14.4. Should such consultations fail toresolve the matter, either Contracting party may notify, in writing, the other ContractingParty of its decision to refer the issue to arbitration under CETA Articles 14.6 through14.10."d) Article 9(2) first paragraph shall read as follows: "By way of derogation from paragraph 1, where a Contracting Party has invoked the objection procedure provided for in Article 8, the Contracting Parties shall act in accordance with the outcome of theconsultations, unless the matter is referred to the arbitration procedure foreseen in CETAArticles 14.6 through 14.10, in which case: "e) When CETA Articles 14.6 through 14.10 are applied in the course of the procedurereferred to in Article 9(2) of the 2003 Wine and Spirits Agreement, they shall apply

mutatis mutandis

.

Section 2

Article 1 of the 1989 Agreement, as amended by Annex VIII to the 2003 Agreement, shall havethe following definition added:"competent authority" means any government or commission, board or other governmentalagency of either Party that is authorised by law to control the sale of wines and distilled spirits.

Section 3

Article 2(2)(b) of the 1989 Agreement, as amended by Annex VIII to the 2003 Agreement, shall be replaced by the following:(b) - requiring off site private wine store outlets in Ontario and British Columbia to sellonly wines produced by Canadian wineries. The number of these off site private wine


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store outlets authorised to sell only wines produced by Canadian wineries in these provinces shall not exceed 292 in Ontario and 60 in British Columbia.

Section 4

Article 4 of the 1989 Agreement, as amended by Annex VIII to the 2003 Agreement, shall bereplaced by the following:Article 4 – Commercial Treatment1. Competent authorities shall, in exercising their responsibilities for the purchase,distribution and retail sale of product of the other Party, adhere to the provisions of GATTArticle XVII concerning State trading enterprises, in particular to make any such decisionssolely in accordance with commercial considerations and shall afford the enterprises of theother Party adequate opportunity, in accordance with customary business practice, tocompete for participation in such purchases.2. Each Party shall take all possible measures to ensure that an enterprise that has beengranted a monopoly in the trade and sale of wines and spirit drinks within its territory doesnot use its monopoly position to engage, either directly or indirectly, including through itsdealings with its parent, subsidiaries or other enterprises with common ownership, in thesale of wine and spirit drinks in a market outside the territory where the enterprise has amonopoly position that causes an anti-competitive effect causing an appreciable restrictionof competition in that market.

Section 5

Article 4(a) of the 1989 Agreement, as amended by Annex VIII to the 2003 Agreement, shall bereplaced by the following:4(a) – Pricing1. Competent authorities of the Parties shall ensure that any mark-up, cost of service or other pricing measure is non-discriminatory, applies to all retail sales, and is in conformityof Article 2.2. A cost of service differential may be applied to products of the other Party only in sofar as it is no greater than the additional costs necessarily associated with the marketing of products of the other Party, taking into account additional costs resulting from,

inter alia

,delivery methods and frequency.3. Each Party shall ensure that a cost of service is not applied to products of the other Party on the basis of the value of the product.4. The cost of service differential shall be justified in line with standard accounting


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Trade in Goods text

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3. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODSTITLE ON TRADE IN GOODSChapter XNational Treatment and Market Access for GoodsARTICLE 1: OBJECTIVE

The Parties shall progressively liberalise trade in goods over a transitional periodstarting from the entry into force of this Agreement in accordance with the provisionsof this Agreement.

ARTICLE 2: SCOPE

This Chapter applies to trade in goods of either Party, as defined in the InitialProvisions and General Definitions Chapter, except as otherwise provided in thisAgreement.

ARTICLE 3: DEFINITIONS

For purposes of this Chapter [

EC

: the following definitions apply:]

Agricultural good:

[means] A product listed in Annex 1 of the WTO Agreement onAgriculture with any subsequent changes agreed in the WTO to be automaticallyeffective for this Agreement;

Customs duty

: [means] Any duty or charge of any kind imposed on or in connectionwith the importation of a good, including any form of surtax or surcharge imposed onor in connection with such importation

[EC:

. It

] [CN:,

but] does not include any:(a) charge equivalent to an internal tax imposed consistently with Article [4(National Treatment)] of this Agreement;(b) duty imposed pursuant to a Party’s domestic law consistently with Chapter ...[

Trade Remedies

](c) measure applied consistently with the provisions of Article VI or Article XIX of the GATT 1994, the WTO Agreement on Implementation of Article VI of the GATT1994, the WTO Agreement on Subsidies and Countervailing Measures, the WTOAgreement on Safeguards, and Article 22 of the Dispute Settlement Understanding.(d) fee or other charge imposed consistently with Article VIII of GATT;

ARTICLE 4: NATIONAL TREATMENT

1. Each Party shall accord national treatment to the goods of the other Party inaccordance with Article III of the GATT 1994. To this end the obligations contained


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in Article III of the GATT 1994, are incorporated into and made part of thisAgreement.2. The provisions of paragraph 1 mean, with respect to a measure taken by agovernment in Canada other than at the federal level or by a government of or in aEuropean Union Member State, treatment no less favourable than that accorded bythat government to like, directly competitive or substitutable goods, as the case may be, of Canada or the Member State respectively.3. This Article does not apply to a measure, including that measure’s continuation, prompt renewal or amendment, in respect of Canadian excise duties on absolutealcohol, as listed under tariff item 2207.10.90 in Canada’s Schedule of Concessionsannexed to the Marrakesh Protocol (Schedule V), used in manufacturing under theexisting provisions of the

Excise Act, 2001

, 2002, c.22, as amended.

ARTICLE 5: REDUCTION AND ELIMINATION OF CUSTOMS DUTIESON IMPORTS

1. Each Party shall reduce or eliminate customs duties on goods originating in either Party in accordance with Annex X-5 and the Schedules set out therein (hereinafter referred to as “the Schedules”). For the purposes of this Chapter, “originating” meansoriginating in either Party under the rules of origin set out in Chapter X (Rules of Origin and Origin Procedures).2. For each good, the base rate of customs duties, to which the successive reductionsare to be applied under paragraph 1, shall be that specified in Annex X-5.3. For goods that are subject to tariff preferences as listed in a Party’s Schedule, eachParty shall apply to originating goods of the other Party the lesser of the customsduties resulting from a comparison between the rate calculated in accordance with thatParty's Schedule and its applied Most Favoured Nation (MFN) rate.4. On the request of either Party, the Parties may consult to consider accelerating and broadening the scope of the elimination of customs duties on imports between theParties. A decision by the Parties in the CETA Joint Committee on the acceleration or elimination of a customs duty on a good shall supersede any duty rate or stagingcategory determined pursuant to their Schedules for that good when approved by eachParty in accordance with its applicable legal procedures.

ARTICLE 6: RESTRICTION ON DUTYDRAWBACK, DUTY DEFERRALAND DUTY SUSPENSION PROGRAMS

1. Subject to paragraph 2, a Party may not refund, defer or suspend a customsduty paid or payable on a good that is non-originating imported into its territory onthe express condition that the good, or an identical, equivalent or similar substitute, isused as a material in the production of another good that is subsequently exported tothe territory of the other Party under preferential tariff treatment pursuant to thisAgreement.


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legislation under Article 13(4) of Chapter x (Customs and TradeFacilitation), and the Party requesting cooperation has reasonablegrounds to conclude that a person of the other Party has committedsystematic breaches of customs legislation based on objective,compelling and verifiable information;the Party may temporarily suspend, in accordance with paragraphs 3 through 6, the preferential tariff treatment under this Agreement with respect to the good concernedof that person.2. A finding pursuant to paragraph 1 may be made where:(a) a Party has concluded that a person of the other Party has committedsystematic breaches of customs legislation in order to obtain preferential tariff treatment under this Agreement as a result of aninvestigation based on objective, compelling and verifiableinformation; or (b) if the other Party systematically and unjustifiably refuses to cooperatewith respect to the investigation of breaches of customs legislationunder Article 13(4) of Chapter x (Customs and Trade Facilitation), andthe Party requesting cooperation has reasonable grounds to concludethat a person of the other Party has committed systematic breaches of customs legislation in order to obtain preferential tariff treatment under this Agreement based on objective, compelling and verifiableinformation.3. A Party that has made a finding pursuant to paragraph 2, shall:(a) Notify the customs authority of the other Party and provide theinformation and evidence upon which the finding was based;(b) Engage in consultations with the customs authority with a view toachieving a mutually acceptable resolution that addresses the concernsthat resulted in the finding; and(c) Provide written notice to that person of the other Party, including providing the information that is the basis of the finding.4. If the customs authorities have not achieved a mutually acceptable resolutionafter 30 days, the Party that has made the finding shall refer the issue to theJoint Customs Cooperation Committee.5. If the Joint Customs Cooperation Committee has not resolved the issue after 60 days, the Party which has made the finding may temporarily suspend the preferential tariff treatment under this Agreement with respect to that good of that person. The temporary suspension shall not apply to a good that isalready in transit between the Parties on the day that the temporary suspensioncomes into effect.6. The temporary suspensions shall apply only for a period commensurate withthe impact on the financial interests of the Party concerned resulting from thesituation responsible for the finding referred to in paragraph 2, but not longer


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than 90 days. Where a Party has reasonable grounds based on objective,compelling and verifiable information that the conditions that gave rise to theinitial suspension have not changed after the expiry of the 90 day period, theParty concerned may renew the suspension for a further period of no longer than 90 days. The original suspension and any renewed suspensions shall besubject to periodic consultations within the Joint Customs CooperationCommittee.

ARTICLE 10: FEES AND OTHER CHARGES

1. In accordance with Article VIII of GATT 1994, no Party may adopt or maintain a fee or charge imposed on or in connection with importation or exportationof a good of a Party that is not commensurate with the cost of services rendered or that represents an indirect protection to domestic goods or a taxation of imports for fiscal purposes.2. Paragraph 1 does not prevent a Party from imposing a customs duty or a charge setout in paragraphs a), b), [or] c)

[

or e)

]

of the definition of customs duty in thisagreement.

ARTICLE 11: GOODS RE-ENTERED AFTER REPAIR OR ALTERATION

1. For the purposes of this Article, repair or alteration means any processingoperation undertaken on goods to remedy operating defects or materialdamage and entailing the re-establishment of goods to their original functionor to ensure their compliance with technical requirements for their use,without which the goods could no longer be used in the normal way for the purposes for which it was intended. Repair or alteration of goods includesrestoration and maintenance but does not include an operation or process thateither:(a) destroys the essential characteristics of a good or creates a new or commercially different good;(b) transforms an unfinished good into a finished good; or (c) is used to substantially change the function of a good.2.

Except as otherwise provided, a Party shall not apply a customs duty to agood, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Partyfor repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration.

1

1

For the following goods of HS Chapter 89 , regardless of their origin, that re-enter theterritory of Canada from the territory of the European Union, and are registered under the

Canada Shipping Act

, Canada may apply to the value of repair or alteration of such goods,the rate of customs duty for such goods in accordance with its Schedule to Annex X.5(Tariff Elimination): 8901.10.00, 8901.30.00, 8901.90.10, 8901.90.90, 8904.00.00,8905.20.10, 8905.20.20, 8905.90.10, 8905.90.90, 8906.90.19, 8906.90.90

Kommentiert [AG2]:

For legal scrubbing: improve reference tothe exception in footnote

Kommentiert [NJ-3]:

* Note of the Negotiator: thecode of thetariff lines referenced in the footnote will beupdated during thecourse of legal scrub to reflect the customs tariff of 2014,parallelingthe same concordance that will bedone on tariff schedules toupdate them to 2014.


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3. Paragraph 2 does not apply to a good imported in bond, into free trade zones,or in similar status, that is exported for repair and is not re-imported in bond, into freetrade zones, or in similar status.4. A Party shall not apply a customs duty to a good, regardless of its origin,imported temporarily from the territory of the other Party for repair or alteration.

ARTICLE 12: IMPORT AND EXPORT RESTRICTIONS

1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994. To this endArticle XI of the GATT 1994 is incorporated into and made a part of this Agreement

.

2. In the event that a Party adopts or maintains a prohibition or restriction on theimportation from or exportation to a non-Party of a good, that Party may:(a) limit or prohibit the importation from the territory of the other Party of agood of that non-Party; or b) limit or prohibit the exportation of a good to that non-Party through theterritory of the other Party.3. In the event that a Party adopts or maintains a prohibition or restriction on theimportation of a good from a non-Party, the Parties, on the request of the other Party,shall enter discussions with a view to avoiding undue interference with or distortionof pricing, marketing or distribution arrangements in the other Party.4. This Article does not apply to a measure, including that measure’scontinuation, prompt renewal or amendment, in respect of the following:i. the export of logs of all species. If a Party ceases to require export permits for logs destined for a non-Party, that Party will permanently cease requiring export permits for logs destined for the other Party.ii. for a period of three years following the entry into force of this Agreement, theexport of unprocessed fish pursuant to Newfoundland and Labrador’s applicablelegislation; andiii. Canadian excise duties on absolute alcohol, as listed under tariff item2207.10.90 in Canada’s Schedule of Concessions annexed to the Marrakesh Protocol(Schedule V), used in manufacturing under the existing provisions of the

Excise Act,2001

, 2002, c.22, as amended.iv. the importation of used vehicles in the territory of a Party that do not conformto that Party’s safety and environmental requirements.

.

ARTICLE 13: OTHER PROVISIONS RELATED TO TRADE IN GOODS

Kommentiert [AG4]:

Lawyers to check when doing legalscrubbing; to consider whether “non-Party” is not better replaced by“third Party”.


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Each Party shall endeavour to ensure that a product of the other Party that has beenimported into and lawfully sold or offered for sale in any place in the territory of theimporting Party may also be sold or offered for sale throughout the territory of theimporting Party.

ARTICLE 14: COMMITTEE ON TRADE IN GOODS

1. The functions of the Committee on Trade in Goods shall include:(a) promoting trade in goods between the Parties, including throughconsultations on accelerating tariff elimination under this Agreementand other issues as appropriate;(b) recommending to the Joint Committee a modification of or addition toany provision of this Agreement related to the Harmonized System;and(c) promptly addressing issues related to movement of goods through theParties' ports of entry.2. The Committee on Trade in Goods may present to the CETA Joint Committee draftdecisions on the acceleration or elimination of a customs duty on a good.3. The Committee on Agriculture:(a) shall meet within 90 days of a request by a Party;(b) shall provide a forum for the Parties to discuss issues related toagriculture goods covered by this Agreement; and(c) shall refer to the Committee on Trade in Goods any matter under subparagraph (b) on which it has been unable to reach agreement.4. The Parties note the cooperation and exchange of information on agricultureissues under the annual Canada-EU Agriculture Dialogue, as confirmed in lettersexchanged on July 14, 2008 between the Director-General of the Directorate Generalfor Agriculture and Rural Development of the European Commission and the DeputyMinister of Agriculture and Agri-Food Canada on the establishment of the annualCanada-EU Agriculture Dialogue. As appropriate the Agriculture Dialogue may beused for the purpose of paragraph 2.


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Annex X.5Tariff Elimination

1. Except as otherwise provided in this Annex, the Parties shall eliminate allcustoms duties on originating goods, of Chapters 1 through 97 of theHarmonized System that provide for an MFN rate of customs duty, importedfrom the other Party upon the date of entry into force of this Agreement.2. For originating goods from the other Party set out in each Party’s Scheduleattached to this Annex, the following staging categories apply to theelimination of customs duties by each Party pursuant to Article 5 (1):(a) duties on originating goods provided for in the items in staging category Ain a Party’s Schedule shall be duty-free on the date this Agreement entersinto force;(b) duties on originating goods provided for in the items in staging category Bin a Party's Schedule shall be removed in 4 equal stages beginning on thedate this Agreement enters into force, and such goods shall be duty-free,effective January 1 of year 4;(c) duties on originating goods provided for in the items in staging category Cin a Party's Schedule shall be removed in 6 equal stages beginning on thedate this Agreement enters into force, and such goods shall be duty-free,effective January 1 of year 6; and(d) duties on originating goods provided for in the items in staging category Din a Party's Schedule shall be removed in 8 equal stages beginning on thedate this Agreement enters into force, and such goods shall be duty-free,effective January 1 of year 8;(i) For greater certainty, where the EU applies a customs duty for thefollowing items:1001.10.00*ex 1001.90.99 (high quality common wheat)*1002.00.00*at a level and in a manner so that the duty-paid import price for aspecified cereal will not be greater than the effective intervention price(or in the event of a modification of the current system, the effectivesupport price) increased by 55% as set out in [EU Regulation – Commission Regulation (EC) No. 1031/2008 of 19 September 2008],the EU shall apply the tariff elimination staging category towards anycalculated duty that would be applied as per the above regulation, asfollows:


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Year Applied Duty

1 87.5% of the duty calculated as per EC Reg.1031/20082 75% of the duty calculated as per EC Reg. 1031/20083 62.5% of the duty calculated as per EC Reg.1031/20084 50% of the duty calculated as per EC Reg. 1031/20085 37.5% of the duty calculated as per EC Reg.1031/20086 25% of the duty calculated as per EC Reg. 1031/20087 12.5% of the duty calculated as per EC Reg.1031/20088 and following 0% of the duty calculated as per EC Reg. 1031/2008(duty-free)

* Note of the Negotiator: the code of these tariff lines will have to beupdated in order to reflect changes in the EU Common Customs Tariff nomenclature. This operation will be done within the framework of theoverall process of updating tariff schedules

; and(e) duties on originating goods provided for in the items in staging category Sin a Party's Schedule shall be removed in 3 equal stages beginning on thefifth anniversary of the date of entry into force of this agreement, and suchgoods shall be duty-free, effective January 1 of year 8.(f) the ad valorem component of the customs duties on originating goods provided for in the items in staging category AV0+EP in a Party'sSchedule shall be eliminated upon the date of entry into force of thisAgreement; the tariff elimination shall apply to the ad valorem duty only;the specific duty resulting from the entry price system applicable for theseoriginating goods shall be maintained.(g) duties on originating goods provided for in the items in staging category Ein a Party’s schedule are exempt from tariff elimination.3. For purposes of this Annex and each Party's Schedule, year 1 means the year this Agreement enters into force as provided in Article XX.XX (FinalProvisions - Entry into Force).4. For purposes of this Annex and a Party's Schedule, Year 2 shall begin onJanuary 1 following the date of entry into force of this Agreement, with eachsubsequent tariff reduction taking effect on January 1 of each subsequent year.5. The base rate for determining the interim staged rate of customs duty for anitem shall be the most favoured nation customs duty rate applied on June 9,2009.6. For the purpose of the elimination of customs duties in accordance withArticle 5, interim staged rates shall be rounded down at least to the nearest


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tenth of a percentage point or, if the rate of duty is expressed in monetaryunits, at least to the nearest 0.001 of the official monetary unit of the Party.

Tariff Rate Quotas

7. For the administration in Year 1 of each tariff rate quota established under thisAgreement, the Parties shall calculate the volume of that tariff rate quota bydiscounting the volume corresponding to the period running between the 1

st

of January and the date of entry into force of the Agreement.

8. Processed shrimps transitional tariff rate quota

(a) Originating goods in the following aggregate quantities and provided for initems with the notation “TQShrimps” in the EU’s Schedule shall be duty-free in the years specified below:Processed shrimps, classified in the following tariff lines:

o

1605.20.10 shrimps and prawns, prepared or preserved, in airtightcontainers; or

o

1605.20.99 shrimps and prawns, prepared or preserved, inimmediate packings of a net content of >2kg (excluding shrimpsand prawns in airtight containers)

Year Aggregate Annual Quantity(Metric Tonnes)

2

1 through to 7 23,000

(b) The European Union shall:i) Administer this tariff rate quota on a first-come first-served basis;ii) Administer this tariff rate quota on a calendar year basis with the fullin-quota quantity to be made available on January 1

st

of each year; andiii) Not impose any end-use restriction on the imported good as acondition of the application for or use of this tariff rate quota.(c) Prepared or preserved shrimps and prawns exported from Canada under Section B of Appendix X.X(Origin Quotas) shall not be imported into theEU under this tariff rate quota.*

Note of the Negotiator: the code of this tariff line will have to be updated in order toreflect changes in the EU Common Customs Tariff nomenclature. This operation will be done within the framework of the overall process of updating tariff schedules.

2Expressed in net weight.


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9. Frozen cod transitional tariff rate quota

(a) Originating goods in the following aggregate quantities and provided for initems with the notation “TQCod” in the EU’s Schedule shall be duty-freein the years specified below:Frozen cod, classified in the following tariff line:

o

0304.29.29 frozen fillets of cod 'Gadus morhua, Gadus ogac' and of fish of species 'Boreogadus saida'


3


(b) The European Union shall:i) Administer this tariff rate quota on a first-come first-served basis;ii) Administer this tariff rate quota on a calendar year basis with the fullin-quota quantity to be made available on January 1

st

of each year; andiii) Not impose any specific end-use restriction on the imported good as acondition of the application for or use of this tariff rate quota.*

Note of the Negotiator: the code of this tariff line will have to be updated in order toreflect changes in the EU Common Customs Tariff nomenclature. This operation will be done within the framework of the overall process of updating tariff schedules.

10. Low and Medium Quality Common Wheat transitional tariff rate quota

(a) Originating goods in the following aggregate quantities and provided for initems with the notation “TQCW” in the EU’s Schedule shall be duty-freein the years specified below:Common wheat of a quality, other than high quality, classified in thefollowing tariff line:

o

1001.90.99*The following aggregate duty-free quantities shall include, beginning inyear 1, the 38,853 tonne allocation to Canada as set out in [CommissionRegulation (EC) No. 1067/2008 of 30 October 2008].



(b) The European Union shall administer this tariff rate quota in accordance withthe terms of Commission Regulation (EC) No. 1067/2008 of 30 October 2008.



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12. Bison Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and provided for initems with the notation “TQB3” in the EU’s Schedule shall be duty-free in theyears specified below:Bison classified in the following Tariff Lines:



0201.10.00, 0201.20.20, 0201.20.30, 0201.20.50, 0201.20.90,0201.30.00, 0202.10.00, 0202.20.10, 0202.20.30, 0202.20.50,0202.20.90, 0202.30.10, 0202.30.50, 0202.30.90, 0206.10.95,0206.29.91, 0210.20.10, 0210.20.90, 0210.99.51, 0210.99.59

YearAggregate Annual Quantity(Metric Tonnes – Carcass WeightEquivalent)

1 and each subsequent year 3,000

(b) When calculating quantities imported, the conversion factors specifiedin paragraph 22 of this Annex shall be utilized to convert Product Weightto Carcass Weight Equivalent.(c) The European Union shall:



Administer this tariff rate quota on a first-come first-served basis;and



Administer this tariff rate quota on a calendar year basis with thefull in-quota quantity to be made available on January 1

st

of eachyear.


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13. Fresh/Chilled Beef and Veal Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and provided for in items with the notation “TQB1” in the EU’s Schedule shall be duty-free inthe years specified below:Beef and veal classified in the following Tariff Lines:



0201.10.00, 0201.20.20, 0201.20.30, 0201.20.50, 0201.20.90,0201.30.00, 0206.10.95


1 5,1402 10,2803 15,4204 20,5605 25,7006 and each subsequent year

30,840

The aggregate annual duty-free quantities in the table above shall beincreased, beginning in year 1, by 3,200 metric tonnes product weight(4,160 metric tonnes carcass weight equivalent) resulting from theapplication of Council Regulation (EC) No 617/2009 of 13 July 2009opening an autonomous tariff quota for imports of high-quality beef.(b) When calculating quantities imported, the conversion factors specified in paragraph 22 of this Annex shall be utilized to convert Product Weight toCarcass Weight Equivalent.(c) The European Union shall administer this tariff rate quota, including theadditional quantities as outlined in paragraph 13(a), either , through an importlicensing system as outlined in the [declaration] or as otherwise agreed to between the Parties.(d) Notwithstanding subparagraph (c), [paragraphs 20 and 21] shall apply.

14. Frozen/Other Beef and Veal Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and provided for in items with the notation “TQB2” in the EU’s Schedule shall be duty-free inthe years specified below:Beef and veal classified in the following Tariff Lines:



0202.10.00, 0202.20.10, 0202.20.30, 0202.20.50, 0202.20.90,0202.30.10, 0202.30.50, 0202.30.90, 0206.29.91, 0210.20.10,0210.20.90, 0210.99.51, 0210.99.59


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15. High Quality Fresh, Chilled and Frozen Meat of Bovine Animals Tariff RateQuota

Originating goods that are exported from Canada and are imported into the EUthrough the EU’s existing WTO tariff quota for high quality fresh, chilled andfrozen meat of bovine animals covered by CN codes 0201 and 0202 and for products covered by CN codes 0206 10 95 and 0206 29 91 of 11,500 tonnes product weight, as set out in Commission Implementing Regulation (EU) No593/2013 of 21 June 2013, shall be duty-free on the date this Agreement entersinto force.


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16. Pork Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and provided for in items listed with the notation “TQP” in the EU’s Schedule shall be duty-free in the years specified below:Tariff Lines Covered:



0203.12.11, 0203.12.19, 0203.19.11, 0203.19.13, 0203.19.15,0203.19.55, 0203.19.59, 0203.22.11, 0203.22.19, 0203.29.11,0203.29.13, 0203.29.15, 0203.29.55, 0203.29.59, 0210.11.11,0210.11.19, 0210.11.31, 0210.11.39


1 12,5002 25,0003 37,5004 50,0005 62,5006 and each subsequent year 75,000

The aggregate annual duty-free quantities in the table above shall beincreased, beginning in year 1, by 4,624 metric tonnes product weight(5,549 metric tonnes carcass weight equivalent) pursuant to the volumeestablished in the EU's Canada-specific WTO tariff quota for pig-meat.(b) When calculating quantities imported, the conversion factors specifiedin paragraph 22 of this Annex shall be utilized to convert Product Weightto Carcass Weight Equivalent.(c) The European Union shall administer this tariff rate quota, includingthe additional quantities from the EU’s Canada-specific WTO tariff quotafor pig-meat, either through an import licensing system as outlined in the[declaration] or as otherwise agreed to between the Parties.(d) Notwithstanding subparagraph (c), [paragraphs 20 and 21] shall apply.


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17. Cheese Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and providedfor in items with the notation “TRQ Cheese” in Canada’s Schedule shall beduty-free in the years specified below:Tariff Lines Covered:



0406.10.10, 0406.20.11, 0406.20.91, 0406.30.10, 0406.40.10,0406.90.11, 0406.90.21, 0406.90.31, 0406.90.41, 0406.90.51,0406.90.61, 0406.90.71, 0406.90.81, 0406.90.91, 0406.90.93,0406.90.95, 0406.90.98.

Year Aggregate Annual Quantity(Metric Tonnes

5

)

1 2,6672 5,3333 8,0004 10,6675 13,3336 and each subsequent year 16,000

(b) Canada shall administer this tariff rate quota either through an importlicensing system as outlined in the [declaration] or as otherwise agreed to between the Parties.(c) Notwithstanding subparagraph (b), [paragraphs 20 and 21] shall apply.

18. Industrial Cheese Tariff Rate Quota

(a) Originating goods in the following aggregate quantities and provided for in items with the notation “TRQ Industrial Cheese” in Canada’s Scheduleshall be duty-free in the years specified below:Industrial Cheese, classified in the following Tariff Lines:



0406.10.10, 0406.20.11, 0406.20.91, 0406.30.10, 0406.40.10,0406.90.11, 0406.90.21, 0406.90.31, 0406.90.41, 0406.90.51,0406.90.61, 0406.90.71, 0406.90.81, 0406.90.91, 0406.90.93,0406.90.95, 0406.90.98

Industrial Cheese

shall refer to cheese used as ingredients for further food processing (secondary manufacturing) imported in bulk (not for retailsales).



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Year Aggregate Annual Quantity(Metric Tonnes

6

)

1 2832 5673 8504 1,1335 1,4176 and each subsequent year 1,700

(b) Canada shall administer this tariff rate quota either through an importlicensing system as outlined in the [declaration] or as otherwise agreed to between the Parties.(c) Notwithstanding subparagraph (b), [paragraphs 20 and 21] shall apply.



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19. WTO Cheese Tariff Rate Quota

Canada shall reallocate, beginning in year 1, 800 tonnes of Canada’s20,411,866 kilogram WTO Tariff Rate Quota for cheese to the EU.


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20. Underfill mechanism

With respect to the tariff rate quotas set out in [paragraphs 13, 14, 16, 17 and 18]:(i) If there were to be under-fill of a tariff rate quota, defined as less than 75% physical importsunder the tariff rate quota in a given year, the Parties shall meet, under the request of any of theParties, in the framework of the Sub-Committee on Agriculture established under Article X of Chapter Y in order to address early the underlying causes of the under-fill or any other questionaffecting the smooth operation of the tariff rate quota.(ii) If there were to be under-fill of a tariff rate quota, defined as less than 75% utilisation in agiven year for 3 consecutive years, and where such under-fill is not linked to scarce supply or demand of the relevant product, the administration of the quota for the following year(s) would be made on a First-Come-First-Served basis. To demonstrate scarce supply/demand, a Party mustclearly demonstrate on a quantifiable basis that either adequate supply to fill the tariff rate quotais not available in the country of export or that the tariff rate quota quantity could not beconsumed in the importing market. Were Parties to disagree on the reasons leading to under-fill,the matter shall be subject to binding arbitration at the request of any of the Parties.(iii) If subsequently there were to be full use of the tariff rate quota, defined as 90% or moreutilisation for 2 consecutive years, Parties may consider returning to a licencing systemfollowing consultations with the other Party on the necessity and opportunity of such reversionand on the features of such licence system.

21. Review clause

(i) With respect to the tariff rate quotas set out in [paragraphs 13, 14, 16, 17 and 18], both at themid-term and at the end of the phase-in period of any of these tariff rate quotas , or at any other time upon motivated request of any of the Parties, the Parties will review the operation of therelevant tariff rate quota administration system in light notably of its effectiveness in ensuringquota utilisation, market conditions, and administrative burden associated with the system for theeconomic operators and for the Parties.(ii) With respect to the tariff rate quotas included in [paragraphs 17 and 18], this review will alsoinclude the allocation method allowing for new entrants.(iii) With respect to the tariff rate quotas included in [paragraphs 13, 14 and 16], the reviewreferred to above shall include the consequences of any tariff rate quota administrationmodalities agreed with a third party for the same products in the framework of other tradenegotiations involving the Parties and would include the possibility of providing the option to theexporting Party of transitioning to the approach agreed to in another agreement. The conditionsof competition in North America will be a necessary part of the review.


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02031915 Fresh or chilled bellies "streaky" and cuts thereof of domestic swine 100%02031955 Fresh or chilled boneless meat of domestic swine (excl. bellies and cuts thereof) 120%02031959Fresh or chilled meat of domestic swine, with bone in(excl. carcases and half-carcases, hams, shoulders and cutsthereof, and fore-ends, loins, bellies and cuts thereof)100%02032211 Frozen bone-in hams and cuts thereof of domestic swine 100%02032219 Frozen bone-in shoulders and cuts thereof of domesticswine 100%02032911 Frozen fore-ends and cuts thereof of domestic swine 100%02032913 Frozen loins and cuts thereof of domestic swine, with bonein 100%02032915 Frozen bellies "streaky" and cuts thereof of domestic swine 100%02032955 Frozen boneless meat of domestic swine (excl. bellies andcuts thereof) 120%02032959Frozen meat of domestic swine, with bone in (excl.carcases and half-carcases, hams, shoulders and cutsthereof, and fore-ends, loins, bellies and cuts thereof)100%02101111 Domestic swine hams and cuts thereof, salted or in brine,with bone in 100%02101119 Domestic swine shoulders and cuts thereof, salted or in brine, with bone in 100%02101131 Domestic swine hams and cuts thereof, dried or smoked,with bone in 120%02101139 Domestic swine shoulders and cuts thereof, dried or smoked, with bone in 120%


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NOTE – See Tariff Schedules attached separately.


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4. RULES OF ORIGIN and ORIGIN PROCEDURES PROTOCOLSECTION AGENERAL PROVISIONS

A

RTICLE

1

D

EFINITIONS

For the purposes of this Protocol:

aquaculture

means the farming of aquatic organisms, including fish, molluscs,crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs,fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding or protection from predators;

classified

means the classification of a product under a particular heading or subheadingof the Harmonized System;

customs authority

means any governmental authority that is responsible under the lawof a Party for the administration and application of customs laws and regulations or for the EU, where provided for, the competent services of the Commission of the EuropeanUnion;

customs value

means the value as determined in accordance with the 1994Agreement onimplementation ofArticle VII of the General Agreement on Tariffs and Trade (WTOAgreement on customs valuation);

determination of origin

means a determination as to whether a good qualifies as anoriginating good in accordance with this Protocol;

exporter

means an exporter located in the territory of a Party;

Harmonized System

means the Harmonized Commodity Description and CodingSystem (HS), including its General Rules of Interpretation, Section Notes, Chapter Notesand Subheading Notes;

identical originating products

means products that are the same in all respects,including physical characteristics, quality and reputation, irrespective of minor


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differences in appearance that are not relevant to a determination of origin of those products under this Protocol;

importer

means an importer located in the territory of a Party;

material

means any ingredient, component, part or product that is used in the productionof another product;

net weight of the non-originating material

means the weight of the material as it isused in the production of the product, not including the weight of the material’s packaging;

net weight of the product

means the weight of a product not including the weight of packaging. If the production includes a heating or drying operation, the net weight of the product may be the net weight of all materials used in its production, excluding water of heading 22.01 added during production of the product;

producer

means a person who engages in any kind of working or processing includingsuch operations as growing, mining, raising, harvesting, fishing, trapping, hunting,manufacturing, assembling or disassembling a product;

product

means the result of production, even if it is intended for use as a material in the production of another product;

production

means any kind of working or processing, including such operations asgrowing, mining, raising, harvesting, fishing, trapping, hunting, manufacturing,assembling or disassembling a product;

transaction value or ex-works price of the product

means the price paid or payable tothe producer of the product at the place where the last production was carried out, andmust include the value of all materials. If there is no price paid or payable or if it doesnot include the value of all materials, the transaction value or ex-works price of the product:(a) must include the value of all materials and the cost of production employed in producing the product, calculated in accordance with generally accepted accounting principles; and(b) may include amounts for general expenses and profit to the producer that can bereasonably allocated to the product.


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Any internal taxes which are, or may be, repaid when the product obtained is exportedare excluded. If the transaction value or ex-works price of the product includes costsincurred subsequent to the product leaving the place of production, such as transportation,loading, unloading, handling or insurance, those costs are to be excluded.

value of non-originating materials

means the customs value of the material at the timeof its importation into a Party, as determined in accordance with the Customs ValuationAgreement. The value of the non-originating material must include any costs incurred intransporting the material to the place of importation, such as transportation, loading,unloading, handling or insurance. If the customs value is not known or cannot beascertained, the value of non-originating materials will be the first ascertainable price paid for the materials in the European Union or in Canada.

SECTION BRULES OFORIGIN

A

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2

G

ENERAL REQUIREMENTS

1. For the purposes of this Agreement, a product is originating in the Party where thelast production took place if, in the territory of a Party or in the territory of both of theParties in accordance with Article 3, it:(a) has been wholly obtained within the meaning of Article 4;(b) has been produced exclusively from originating materials; or,(c) has undergone sufficient production within the meaning of Article 5.2. Except as provided for in paragraphs 8 and 9 of Article 3 (Cumulation of Origin), theconditions set out in this Protocol relating to the acquisition of originating status must be fulfilled without interruption in the territory of one or both of the Parties.

A

RTICLE

3

C

UMULATION OF ORIGIN

1. Aproduct that originates in a Party is considered originating in the other Party whenused as a material in the production of a product there.2. An exporter may take into account production carried out on a non-originatingmaterial in the other Party for the purposes of determining the originating status of a product.3. Paragraphs 1 and 2 do not apply if the production carried out on a product does not go beyond the operations referred to inArticle 7 (Insufficient Production) and the object


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of this production, as demonstrated on the basis of a preponderance of evidence, is tocircumvent financial or fiscal legislation of the Parties.4. Where an exporter has completed an origin declaration for a product referred to in paragraph 2, the exporter must possess a supplier’s statement that is completed andsigned by the supplier of the non-originating materials used in the production of the product.5. Asupplier’s statement may be as specified inAnnex 4 (Supplier’s Statement for Non-Originating Materials Used in the Production of Non-Originating Products) or anequivalent document that contains the same information describing the non-originating materials concerned in sufficient detail for them to be identified.6. Where a supplier's statement referred to in paragraph 4 is in electronic format, it neednot be signed, provided that the supplier is identified to the satisfaction of the customsauthorities in the Party where the supplier's statement was completed.7. Asupplier’s statement applies to a single invoice or multiple invoices for the samematerial that is supplied within a period not exceeding 12 months from the date setout in the supplier’s statement.8. Subject to paragraph 9, where, as permitted by the WTO Agreement, each Party has afree trade agreement with the same non-Party, a material of that non-Party will betaken into consideration when determining whether a product is originating under thisAgreement.9. AParty shall give effect to paragraph 8 only once provisions with effect equivalent to paragraph 8 are in force between each Party and the non-Party and upon agreement by the Parties on the applicable conditions.10. Notwithstanding paragraph 9, where each Party has a free trade agreement with theUnited States, and upon agreement by the Parties on the applicable conditions, a Partyshall give effect to paragraph 8 when determining whether a product of Chapters 2,11, headings 16.01 through 16.03, Chapter 19, heading 20.02 and 20.03 andsubheading 3505.10 is originating under thisAgreement.

A

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4

W

HOLLY OBTAINED PRODUCTS

1. The following shall be considered as wholly obtained in a Party:(a) mineral products and other non-living natural resources extracted or taken fromthere;(b) vegetables, plants and plant products harvested or gathered there;(c) live animals born and raised there;(d) (i) products obtained from live animals there;(ii) products from slaughtered animals born and raised there;


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(e) (i) products obtained by hunting, trapping or fishing conducted there, but not beyond the outer limits of the Party’s territorial sea;(ii) products of aquaculture raised there;(f) fish, shellfish and other marine life taken beyond the outer limits of any territorialsea by a vessel;(g) products made aboard their factory ships exclusively from products referred to in(f);(h) mineral products and other non-living natural resources, taken or extracted fromthe seabed, subsoil or ocean floor of:i. the exclusive economic zone of Canada or the EU’s Member States, asdetermined by domestic law and consistent with Part V of the United Nations Convention of the Law of the Sea done at Montego Bay on 10December 1982 (UNCLOS);ii. the continental shelf of Canada or the EU’s Member States, as determined by domestic law and consistent with Part VI of UNCLOS; or iii. theArea as defined inArticle 1(1) of UNCLOS, by a Party or a person of a Party, provided that Party or person of a Party hasrights to exploit such seabed, subsoil or ocean floor;(i) raw materials recovered from used products collected there, provided that these products are fit only for such recovery;(j) components recovered from used products collected there, provided that these products are fit only for such recovery, when the component is either;(i) incorporated in another product; or (ii) further produced resulting in a product with a performance and life expectancyequivalent or similar to those of a new product of the same type;(k) products, at any stage of production, produced there exclusively from productsspecified in (a) to (j);2. For the purpose of subparagraphs 1(f) and (g), the following conditions shall apply tothe vessel or factory ship:(a) the vessel or factory ship must be:(i) registered in a Member State of the European Union or in Canada; or (ii) listed in Canada, if such vessel:a. immediately prior to its listing in Canada, is entitled to flythe flag of a Member State of the European Union and mustsail under that flag; and b. fulfills the conditions of either 2(c)(i) or 2(c)(ii) below;


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(b) the vessel or factory ship must be entitled to fly the flag of a Member Stateof the European Union or of Canada and must sail under that flag; and,(c) with respect to the European Union the vessel or factory ship must be:(i) at least 50% owned by nationals of a Member State of theEuropean Union; or (ii) owned by companies which have their head office and their main place of business in a Member State of the European Union, andwhich are at least 50% owned by a Member State of the EuropeanUnion, public entities or nationals of those States;(d) with respect to Canada, the vessel or factory ship must take the fish,shellfish or other marine life under the authority of a Canadian fishinglicence. Canadian fishing licences comprise Canadian commercial fishinglicences and Canadian aboriginal fishing licences issued to aboriginalorganizations. The holder of the Canadian fishing licence must be either:(i) a Canadian national;(ii) an enterprise that is no more than 49 per cent foreign owned andhas a commercial presence in Canada;(iii) a fishing vessel owned by a person referred to in subparagraph (i)or (ii) that is registered in Canada, entitled to fly the flag of Canadaand must sail under that flag; or (iv) an aboriginal organization located in the territory of Canada. A person fishing under the authority of a Canadian aboriginal fishinglicence must be a Canadian national.

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S

UFFICIENT PRODUCTION

1. For the purposes of Article 2, products which are not wholly obtained areconsidered to have undergone sufficient production when the conditions set out inAnnex 1 (Product-Specific Rules of Origin) are fulfilled.2. If a non-originating material undergoes sufficient production, the resulting product shall be considered as originating and no account shall be taken of thenon-originating material contained therein when that product is used in thesubsequent production of another product.

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T

OLERANCE

1. NotwithstandingArticle 5(1), and except as provided in paragraph 3, if the non-originating materials used in the production of the product do not fulfil the


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conditions set out inAnnex 1 (Product-Specific Rules of Origin), the product may be considered to be an originating product provided that:(a) the total value of those non-originating materials does not exceed 10 per centof the transaction value or ex-works price of the product;(b) any of the percentages given in Annex 1 (Product-Specific Rules of Origin)for the maximum value or weight of non-originating materials are not exceededthrough the application of this paragraph; and(c) the product satisfies all other applicable requirements of this Protocol.2. Paragraph 1 does not apply to products wholly obtained in a Party within themeaning ofArticle 4 (Wholly Obtained Products). Where the rule of originspecified inAnnex 1 (Product-Specific Rules of Origin) requires that the materialsused in the production of a product be wholly obtained, the tolerance provided for in paragraph 1 applies to the sum of these materials.3. Tolerance for textile and apparel products of Chapters 50 through 63 of theHarmonized System will be determined in accordance with Annex 2(Tolerancefor Textile and Apparel Products).4. Paragraphs 1 through 3 are subject toArticle 8(c) (Unit of Classification).

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I

NSUFFICIENT PRODUCTION

1. Without prejudice to paragraph 2, the following operations are insufficient toconfer origin on a product, whether or not the requirements ofArticle5 (Sufficient Production) or Article 6 (Tolerance) are satisfied:(a) operations exclusively intended to preserve products in good condition duringstorage and transport;

1

(b) breaking-up or assembly of packages;(c) washing, cleaning or operations to remove dust, oxide, oil, paint or other coverings from a product;(d) ironing or pressing of textiles or textile articles of Chapter 50 through 63 of the Harmonized System;(e) simple painting or polishing operations;(f) husking, partial or total bleaching, polishing or glazing of cereals or rice of Chapter 10 that does not result in a change of chapter;

1

Preserving operations such as chilling, freezing or ventilating are consideredinsufficient within the meaning of subparagraph (a), whereas operations such as pickling, drying or smoking that are intended to give a product special or differentcharacteristics, are not considered insufficient.


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(g) operations to colour or flavour sugar of heading 17.01 through 17.02;operations to form sugar lumps of heading 17.01; partial or total grinding of crystal sugar of heading 17.01;(h) peeling, stoning or shelling of vegetables of Chapter 7, fruits of Chapter 8,nuts of heading 08.01 through 08.02 or groundnuts of heading 12.02, if thesevegetables, fruits, nuts or groundnuts remain classified within the same chapter;(i) sharpening, simple grinding or simple cutting;(j) simple sifting, screening, sorting, classifying, grading or matching;(k) simple packaging operations, such as placing in bottles, cans, flasks, bags,cases, boxes or fixing on cards or boards;(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;(m) mixing of sugar of heading 17.01 through 17.02 with any material;(n) simple mixing of materials, whether or not of different kinds, however, simplemixing does not include an operation that causes a chemical reaction as defined inthe notes to Chapter 28 through 29 ofAnnex 1 (Product-Specific Rules of Origin).(o) simple assembly of parts of articles to constitute a complete article of Chapters61, 62 and 82 to 97 of the Harmonized System or disassembly of complete articlesof Chapters 61, 62 and 82 to 97 into parts;(p) a combination of two or more operations specified in (a) to (o); and(q) slaughter of animals.2. In accordance withArticle 3 (Cumulation of Origin), all production carried out inthe European Union and in Canada on a product is considered when determiningwhether the production undertaken on that product is to be regarded as insufficientwithin the meaning of paragraph 1.3. For the purposes of paragraph 1, operations shall be considered simple whenneither special skills, nor machines, apparatus or tools especially produced or installed for those operations are required for their performance or when thoseskills, machines, apparatus or tools do not contribute to the product’s essentialcharacteristics or properties.

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U

NIT OF

C

LASSIFICATION

For the purposes of this Protocol:(a) the tariff classification of a particular product or material shall be determinedaccording to the Harmonized System;


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(b) where a product composed of a group or assembly of articles or components isclassified pursuant to the terms of the Harmonized System under a single headingor subheading, the whole shall constitute the particular product; and(c) where a shipment consists of a number of identical products classified under thesame heading or subheading of the Harmonized System, each product shall beconsidered separately.

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P

ACKAGINGAND PACKING MATERIALS AND CONTAINERS

1. Where, under General Rule 5 of the Harmonized System, packaging is includedwith the product for classification purposes, it is considered in determiningwhether all the non-originating materials used in the production of the productsatisfy the requirements set out in Annex 1 (Product-Specific Rules of Origin).2. Packing materials and containers in which a product is packed for shipment shall be disregarded in determining the origin of that product.

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A

CCOUNTING SEGREGATION OF FUNGIBLE MATERIALS OR PRODUCTS

1. a) If originating and non-originating fungible materials are used in the production of a product, the determination of the origin of the fungible materials need not be madethrough physical separation and identification of any specific fungible material, butmay be determined on the basis of an inventory management system. b) If originating and non-originating fungible products of Chapters 10, 15, 27, 28, 29,headings 32.01 through 32.07 or 39.01 through 39.14 of the Harmonized System are physically combined or mixed in inventory in a Party before exportation to the other Party, the determination of the origin of the fungible products need not be madethrough physical separation and identification of any specific fungible product, butmay be determined on the basis of an inventory management system.2. The inventory management system must:(i) ensure that, at any time, no more products receive originating status thanwould have been the case if the fungible materials or fungible products had been physically segregated;(ii) specify the quantity of originating and non-originating materials or products,including the dates on which those materials or products were placed in inventoryand if required by the applicable rule of origin, the value of those materials or products;(iii) specify the quantity of products produced using fungible materials, or thequantity of fungible products, that are supplied to customers requiring evidence of


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origin in a Party for the purposes of obtaining preferential treatment under thisAgreement and to customers not requiring such evidence; and(iv) indicate whether an inventory of originating products was available insufficient quantity to support the declaration of originating status.3. AParty may require that an exporter or producer within its territory that is seeking touse an inventory management system pursuant to this Article obtain prior authorisation from that Party in order to use that system. The authorisation to use aninventory management system may be withdrawn if the exporter or producer makesimproper use of it.4. For the purposes of paragraph 1, fungible materials or fungible products meansmaterials or products that are of the same kind and commercial quality, with the sametechnical and physical characteristics, and which cannot be distinguished from oneanother for origin purposes.

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A

CCESSORIES

,

SPARE PARTSAND TOOLS

Accessories, spare parts and tools delivered with a product that form part of its standardaccessories, spare parts or tools, that are not invoiced separately from the product andwhich quantities and value are customary for the product, shall be:(a) taken into account in calculating the value of the relevant non-originatingmaterials when the rule of origin ofAnnex 1 (Product-Specific Rules of Origin)applicable to the product contains a percentage for the maximum value of non-originating materials; and(b) disregarded in determining whether all the non-originating materials used inthe production of the product undergo the applicable change in tariff classificationor other requirements set out inAnnex 1 (Product-Specific Rules of Origin).

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S

ETS

1. Except as provided inAnnex 1 (Product-Specific Rules of Origin), a set, asreferred to in General Rule 3 of the Harmonized System, is originating, providedthat:(a) all of the set’s component products are originating; or (b) if the set contains a non-originating component product, at least one of thecomponent products, or all of the packaging material and containers for the set, is originating; andi. the value of the non-originating component products of Chapters 1through 24 of the Harmonized System does not exceed 15 per cent of thetransaction value or ex-works price of the set;


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1. For the purpose of calculating the net cost of a product under Table D.1 of Appendix1 (Origin Quotas and Alternatives to the Product-Specific Rules of Origin), the producer of the product may:

1.

calculate the total cost incurred with respect to all products produced bythat producer, subtract any sales promotion, marketing and after-salesservice costs, royalty, shipping and packing costs, as well as a non-allowable interest cost that is included in the total cost of all those products, and then reasonably allocate the resulting net cost of those products to the product;

2.

calculate the total cost incurred with respect to all products produced bythat producer, reasonably allocate the total cost to the product, and thensubtract any sales promotion, marketing and after-sales service costs,royalty, shipping and packing costs and non-allowable interest cost that isincluded in the portion of the total cost allocated to the product; or

3.

reasonably allocate each cost that forms part of the total cost incurred bythat producer with respect to the product so that the aggregate of thesecosts does not include any sales promotion, marketing and after-salesservice costs, royalty, shipping and packing costs, or non-allowableinterest cost.2. For the purpose of calculating the net cost of a product under paragraph 1, the producer may average its calculation over its fiscal year using any one of thefollowing categories, on the basis of either all motor vehicles produced by that producer in the category or only those motor vehicles in the category that are produced by that producer and exported to the territory of the other Party:(a) the same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party;(b) the same model line of motor vehicles produced in the same plant in theterritory of a Party;(c) the same model line of motor vehicles produced in the territory of a Party;(d) the same class of motor vehicles produced in the same plant in theterritory of a Party; or (e) any other category as the Parties may agree.3. For the purpose of this Article, the following definitions apply, in addition to those setout inArticle 1:(a) motor vehicle means a product of subheading 8703.21 through 8703.90;(b) net cost means total cost minus sales promotion, marketing and after-salesservice costs, royalty, shipping and packing costs, and non-allowableinterest cost that are included in the total cost;


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(c) non-allowable interest cost means interest costs incurred by a producer that exceed 700 basis points above the applicable national governmentinterest rate identified for comparable maturities;(d) royalty means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or scientificwork, patent, trademark, design, model, plan, secret formula or process, excluding those payments under technical assistance or similar agreements that can be related to specific services such as:i. personnel training, without regard to where performed; andii. if performed in the territory of one or both of the Parties,engineering, tooling, die-setting, software design and similar computer services, or other services;(e) sales promotion, marketing and after-sales service costs means thefollowing costs related to sales promotion, marketing and after-salesservice:i. sales and marketing promotion; media advertising; advertising andmarket research; promotional and demonstration materials;exhibits; sales conferences, trade shows and conventions; banners;marketing displays; free samples; sales, marketing and after-salesservice literature (product brochures, catalogues, technicalliterature, price lists, service manuals, sales aid information);establishment and protection of logos and trademarks;sponsorships; wholesale and retail restocking charges;entertainment;ii. sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives;iii.salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance, pension), travelling and livingexpenses, and membership and professional fees for sales promotion, marketing and after-sales service personnel;iv.recruiting and training of sales promotion, marketing and after-sales service personnel, and after-sales training of customers'employees, where such costs are identified separately for sales promotion, marketing and after-sales service of products on thefinancial statements or cost accounts of the producer;v. product liability insurance;vi.office supplies for sales promotion, marketing and after-salesservice of products, where such costs are identified separately for sales promotion, marketing and after-sales service of products onthe financial statements or cost accounts of the producer;


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vii. telephone, mail and other communications, where such costs areidentified separately for sales promotion, marketing and after-salesservice of products on the financial statements or cost accounts of the producer;viii. rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centres;ix. property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing and after-salesservice offices and distribution centres, where such costs areidentified separately for sales promotion, marketing and after-salesservice of products on the financial statements or cost accounts of the producer; andx. payments by the producer to other persons for warranty repairs;(f) shipping and packing costs means the costs incurred in packing a productfor shipment and shipping the product from the point of direct shipment tothe buyer, excluding costs of preparing and packaging the product for retail sale.(g) total cost means all product costs, period costs and other costs incurred inrelation to the production of a product in Canada. Product costs meansthose costs that are associated with the production of a product and includethe value of materials, direct labour costs, and direct overhead. Periodcosts means those costs other than product costs that are expensed in the period in which they are incurred, including selling expenses and generaland administrative expenses. Other costs means all costs recorded on the books of the producer that are not product costs or period costs.


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S

ECTION

CO

RIGIN

P

ROCEDURES

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P

ROOF OF

O

RIGIN

1. Products originating in the EU Party shall, on importation into Canada and products originating in Canada shall, on importation into the EU Party benefit from preferential tariff treatment of this Agreement on the basis of a declaration, subsequentlyreferred to as the “origin declaration”.2. The origin declaration is provided on an invoice or any other commercialdocument that describes the originating product in sufficient detail to enable itsidentification.3. The different linguistic versions of the text of the origin declaration appear inAnnex 3 (Text of the Origin Declaration).

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O

BLIGATIONS

R

EGARDING

E

XPORTATIONS

1. An origin declaration as referred to inArticle 18(1) may be completed:(a) in the EU, by an exporter in accordance with the relevant EU legislation(b) in Canada, by an exporter as per Part V of the

Customs Act

.2. The exporter completing an origin declaration shall at the request of the customsauthority of the Party of export submit a copy of the origin declaration and all appropriatedocuments proving the originating status of the products concerned, including supportingdocuments or written statements from the producers or suppliers, as well as the fulfilmentof the other requirements of this Protocol.3. Origin declarations shall be completed and signed by the exporter unlessotherwise provided.4. An origin declaration may be completed by the exporter when the products towhich it relates are exported, or after exportation on condition that it is presented in theimporting Party within a period of two years or for such longer period as specified in thelegislation of the importing Party after the importation of the products to which it relates.5. The customs authority of the Party of import may allow an origin declaration toapply to multiple shipments of identical originating products that take place within a period not exceeding 12 months as specified by the exporter in that declaration.6. An exporter who has completed an origin declaration that becomes aware or hasreason to believe that the origin declaration contains incorrect information, shallimmediately notify the importer in writing of any change affecting the originating statusof each product to which the origin declaration applies.


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4. A Party shall, in accordance with its domestic legislation, provide that, where a product would have qualified as an originating product when it was imported into theterritory of that Party except that the importer did not have an origin declaration at thetime of importation, the importer of the product may within a period of no less than threeyears after the date of importation apply for a refund of duties paid as a result of the product not having been accorded preferential tariff treatment.

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P

ROOF RELATED TO TRANSPORT THROUGHANON

-

PARTY

1. Each Party, through its customs authority, may require an importer to demonstratethat a good for which the importer claims preferential tariff treatment was shipped inaccordance withArticle 14 by providing:(a) carrier documents, including bills of lading or waybills, indicating the shippingroute and all points of shipment and transhipment prior to the importation of thegood; and(b) where the good is shipped through or transhipped outside the territories of theParties, a copy of the customs control documents indicating to that customsauthority that the good remained under customs control while outside theterritories of the Parties.

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I

MPORTATION BY

I

NSTALMENTS

Where, at the request of the importer and on the conditions laid down by the customsauthority of the Party of import, dismantled or non-assembled products within themeaning of General Rule 2(a) of the HS falling within Sections XVI and XVII or headings 7308 and 9406 of the HS are imported by instalments, a single origindeclaration for such products shall be submitted, as required, to that customs authorityupon importation of the first instalment.

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E

XEMPTIONS FROM

O

RIGIN

D

ECLARATIONS

1. AParty may, in accordance with its domestic legislation, waive the requirement to present an origin declaration as referred to in Article 21, for low value shipments of originating products from another Party and for originating products forming part of the personal luggage of a traveller coming from another Party.


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2. AParty may exclude any importation from the provisions of paragraph 1 whenthe importation is part of a series of importations that may reasonably be considered tohave been undertaken or arranged for the purpose of avoiding the requirements of thisProtocol related to origin declarations.3. The Parties may set value limits for products referred to in paragraph 1, and willexchange information regarding those limits.

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S

UPPORTING

D

OCUMENTS

The documents referred to in Article 19(2), used for the purpose of proving that productscovered by origin declarations can be considered as products originating in the EU Partyor in Canada and fulfil the other requirements of this Protocol may include documentsrelating to the following:(a) the production processes carried out on the originating product or on materialsused in the production of that product;(b) the purchase of, the cost of, the value of and the payment for the product;(c) the origin of, the purchase of, the cost of, the value of and the payment for allmaterials, including neutral elements, used in the production of the product; and(d) the shipment of the product.

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P

RESERVATION OF

R

ECORDS

1. The exporter that has completed an origin declaration shall keep a copy of theorigin declaration, as well as the documents referred to in Article 25 supportingthe originating status of the products, for three years after the completion of theorigin declaration or for such longer period as a Party may specify.2. Where an exporter has based an origin declaration on a written statement from the producer, the producer shall be required to maintain records in accordance with paragraph 1.3. When provided for in domestic legislation of the Party of import, an importer thathas been granted preferential tariff treatment shall keep documentation relating tothe importation of the good, including a copy of the origin declaration, for threeyears after the date on which preferential treatment was granted, or for suchlonger period as that Party may specify.


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4. Each Party shall permit, in accordance with that Party’s laws and regulations,importers, exporters, and producers in its territory to maintain documentation or records in any medium, provided that the documentation or records can beretrieved and printed.5. A Party may deny preferential tariff treatment to a good that is the subject of anorigin verification where the importer, exporter, or producer of the good that isrequired to maintain records or documentation under this Article:(a) fails to maintain records or documentation relevant to determining theorigin of the good in accordance with the requirements of the Protocol; or (b) denies access to such records or documentation.

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D

ISCREPANCIES AND

F

ORMAL

E

RRORS

1. The discovery of slight discrepancies between the statements made in the origindeclaration and those made in the documents submitted to the customs authoritiesfor the purpose of carrying out the formalities for importing the products shall not

ipso facto

render the origin declaration null and void if it is duly established thatsuch document does correspond to the products submitted.2. Obvious formal errors such as typing errors on an origin declaration should notcause this document to be rejected if these errors are not such as to create doubtsconcerning the correctness of the statements made in this document.

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C

O

-

OPERATION

1. The Parties shall co-operate in the uniform administration and interpretation of the provisions of this Protocol and, through their customs authorities, assist eachother in verifying the originating status of the products on which an origindeclaration is based.2. In order to facilitate the verifications or assistance referred to in paragraph 1, thecustoms authorities of the Parties shall provide each other, through theCommission of the European Communities, with addresses of the customsauthorities responsible.


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3. It is understood that the customs authority of the Party of export will assume allexpenses in carrying out paragraph 1.4. It is further understood that the customs authorities of the Parties will discuss theoverall operation and administration of the verification process, includingforecasting of workload and discussing priorities. Where there is an unusualincrease in the number of requests, the customs authorities of the Partiesconcerned will consult to establish priorities and consider steps to manage theworkload, with consideration of operational requirements.5. With respect to goods considered originating in accordance withArticle 3, theParties may cooperate with a non-Party to develop customs procedures based onthe principles of this Protocol.

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ORIGIN

V

ERIFICATION

1. In order to ensure the proper application of this Protocol, the Parties shall assisteach other, through the customs authorities, in verifying whether products are originatingand ensuring the accuracy of claims for preferential tariff treatment.2. Requests for origin verifications as to whether the product is originating and allother requirements of this Protocol have been fulfilled, shall be made:(a) based on risk assessment methods applied by the customs authority of the Party of import, which may include random selection, or (b) where the Party of import has reasonable doubts.3. The customs authority of the Party of import may verify whether a product isoriginating by requesting in writing that the customs authority of the Party of exportconduct a verification as to whether a product is originating. When requesting averification, the customs authority of the Party of import shall provide the customsauthority of the Party of export with:(i) the identity of the customs authority issuing the request;(ii) the name of the exporter or producer to be verified;(iii)the subject and scope of the verification;(iv)a copy of the origin declaration and, where applicable any other relevant documentation.Where appropriate the customs authority of the Party of import may request the customsauthority of the Party of export for specific documentation and information.


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2. Further toArticles X.03 (Transparency Chapter - Administrative Proceedings) andX.04 (Transparency Chapter - Review andAppeal), each Party shall provide that therights of review and appeal referred to in paragraph 1 shall include access to at least twolevels of appeal or review including at least one judicial or quasi-judicial level.

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P

ENALTIES

Each Party shall maintain measures imposing criminal, civil or administrative penalties for violations of its laws and regulations relating to this Protocol.

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C

ONFIDENTIALITY

1. Nothing in this Protocol shall be construed to require a Party to furnish or allowaccess to business information or to information relating to an identified or identifiableindividual, the disclosure of which would impede law enforcement or would be contraryto that Party’s legislation protecting business information and personal data and privacy.2. Each Party shall maintain, in accordance with its law, the confidentiality of theinformation collected pursuant to this Protocol and shall protect that information fromdisclosure that could prejudice the competitive position of the persons providing theinformation. Where the Party receiving or obtaining information is required by its laws todisclose the information, that Party shall notify the Party or person who provided thatinformation.3. Each Party shall ensure that the confidential information collected pursuant to thisProtocol shall not be used for purposes other than the administration and enforcement of determinations of origin and of customs matters, except with the permission of the personor Party who provided the confidential information.4. Notwithstanding paragraph 3, a Party may allow information collected pursuant tothis Protocol to be used in any administrative, judicial or quasi-judicial proceedingsinstituted for failure to comply with customs related laws and regulations implementingthis Protocol. A Party shall notify the person or Party who provided the information inadvance of such use.5. The Parties shall exchange information on their respective legislation on data protection for the purpose of facilitating the operation and application of paragraph 2.

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A

DVANCE

R

ULINGS

R

ELATING TO

O

RIGIN

1. Each Party shall through its customs authority, provide for the expeditiousissuance of written advance rulings in accordance with its domestic law, prior to theimportation of a good into its territory, concerning whether a good qualifies as anoriginating good under this Protocol.2. Each Party shall adopt or maintain procedures for the issuance of advance rulings,including a detailed description of the information reasonably required to process anapplication for a ruling.3. Each Party shall provide that its customs authority:(a) may, at any time during the course of an evaluation of an application for anadvance ruling, request supplemental information from the person requesting theruling;(b) shall, after it has obtained all necessary information from the personrequesting the advance ruling, issue the ruling within 120 days; and(c) shall provide to the person requesting the advance ruling a full explanation of the reasons for the ruling.4. Where application for an advance ruling involves an issue that is the subject of:(a) a verification of origin;(b) a review by or appeal to the customs authority; or (c) judicial or quasi-judicial review in its territory;the customs authority in accordance with its laws and regulations, may decline or postpone the issuance of the ruling.5. Subject to paragraph 7, each Party shall apply an advance ruling to importationsinto its territory of the good for which the ruling was requested, beginning on the date of its issuance or such later date as may be specified in the ruling.6. Each Party shall provide to any person requesting an advance ruling the sametreatment as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.7. The issuing Party may modify or revoke an advance ruling:(a) if the ruling is based on an error of fact;


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ANNEX 1PRODUCT-SPECIFIC RULES OF ORIGINNote: Please see attached separately.


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ANNEX 2TOLERANCE FOR TEXTILEAND APPARELPRODUCTS

1. For the purpose of this Annex, the following definitions apply:

Natural fibres

means fibres other than artificial or synthetic fibres that have not beenspun. Natural fibres include waste, and, unless otherwise specified, include fibres whichhave been carded, combed or otherwise processed, but not spun. Natural fibres includehorsehair of heading 05.11, silk of headings 50.02 through 50.03, wool-fibres and fine or coarse animal hair of heading 51.01 through 51.05, cotton fibres of heading 52.01through 52.03, and other vegetable fibres of heading 53.01 through 53.05.

Textile pulp, chemical materials and paper-making materials

means materials, notclassified in Chapter 50 through 63, which can be used to manufacture artificial, syntheticor paper fibres or yarns.

Man-made staple fibres

means synthetic or artificial filament tow, staple fibres or waste,of heading 55.01 through 55.07.2. For greater certainty, non-originating materials of Chapters 1 through 49 and 64through 97, including materials that contain textiles, may be disregarded for the purposeof determining whether all the non-originating materials used in the production of a product of Chapter 50 through 63 satisfies the applicable rule of origin set out inAnnex 1(Product-Specific Rules of Origin).3. Subject to paragraph 7, if the non-originating materials used in the production of a product of Chapter 50 through 63 do not fulfill the conditions set out inAnnex 1(Product-Specific Rules of Origin), the product is nonetheless an originating product provided that:(a) the product is produced using two or more of the basic textile materials listed inTable 1;(b) the net weight of non-originating basic textile materials listed in Table 1 does notexceed 10 per cent of the net weight of the product ; and(c) the product satisfies all other applicable requirements of this Protocol.4. Subject to paragraph 7, in the case of a product of Chapter 50 through 63 produced using one or more basic textile materials listed in Table 1, and non-originating


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yarn made of polyurethane segmented with flexible segments of polyether, the product isnonetheless an originating product provided that(a) the weight of the non-originating yarn made of polyurethane segmented withflexible segments of polyether does not exceed 20 % of the weight of the product; and(b) the product satisfies all other applicable requirements of this Protocol.5. Subject to paragraph 7, in the case of a product of Chapter 50 through 63 produced using one or more basic textile materials listed in Table 1 and non-originatingstrip consisting of a core of aluminium foil or of a core of plastic film whether or notcoated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film, the product isnonetheless an originating product provided that:(a) the weight of the non-originating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width notexceeding 5 mm, sandwiched by means of a transparent or coloured adhesive betweentwo layers of plastic film does not exceed 30 % of the weight of the product; and(b) the product satisfies all other applicable requirements of thisProtocol.6. Subject to paragraph 7, if the non-originating materials used in the production of a product of Chapter 61 through 63 do not fulfill the conditions set out inAnnex 1(Product-Specific Rules of Origin), the product is nonetheless an originating product provided that:(a) the non-originating materials are classified in a heading other than that of the product;(b) the value of the non-originating materials does not exceed 8% of the transactionvalue or ex-works price of the product; and(c) the product satisfies all other applicable requirements of this Protocol.Paragraph 6 does not apply to non-originating materials used in the production of liningsor interlinings of a product of Chapter 61 through 63.7. The tolerance provided for in paragraphs 2 through 6 does not apply to non-originating materials used in the production of a product if those materials are subject to arule of origin that includes a percentage for their maximum value or weight.


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Table 1 – Basic Textile Materials



silk,



wool



coarse animal hair



fine animal hair



horsehair



cotton



paper-making materials and paper



flax



true hemp



jute and other textile bast fibres



sisal and other textile fibres of the genus Agave



coconut, abaca , ramie and other vegetable textile fibres



synthetic man-made filaments



artificial man-made filaments



current-conducting filaments



synthetic man-made staple fibres of polypropylene



synthetic man-made staple fibres of polyester



synthetic man-made staple fibres of polyamide



synthetic man-made staple fibres of polyacrylonitrile



synthetic man-made staple fibres of polyimide



synthetic man-made staple fibres of polytetrafluoroethylene



synthetic man-made staple fibres of poly(phenylene sulphide)



synthetic man-made staple fibres of poly(vinyl chloride)



other synthetic man-made staple fibres



artificial man-made staple fibres of viscose



other artificial man-made staple fibres



yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped


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L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ...

(1)

)dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ...

(2)

.Latvian version

Eksportētājs produktiem, kuri ietverti šajā dokumentā (muitas pilnvara Nr. …

(1)

), deklarē, ka, iznemot tur, kur ir citādi skaidri noteikts, šiem produktiem ir priekšrocību izcelsme no …

(2)

.Lithuanian version

Šiame dokumente išvardintų prekių eksportuotojas (muitinès liudijimo Nr …

(1)

) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra …

(2)

preferencinès kilmés prekés.Hungarian version

A jelen okmányban szereplő áruk exportőre (vámfelhatalmazási szám: …

(1)

) kijelentem, hogy

eltérő jelzés hianyában az áruk kedvezményes …

(2)

származásúak.Maltese versionL-esportatur tal-prodotti koperti b’dan id-dokument (awtorizzazzjoni tad-dwana nru. …

(1)

)

jiddikjara li, ħlief fejn indikat b’mod ċar li mhux hekk, dawn il-prodotti huma ta’ oriġini

preferenzjali …

(2)

.Dutch versionDe exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr....

(1)

), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn

(2)

.Polish version

Eksporter produktów objętych tym dokumentem (upoważnienie władz celnych nr …

(1)

)

deklaruje, że z wyjątkiem gdzie jest to wyraźnie określone, produkty te mają …

(2)

preferencyjne pochodzenie.Portuguese versionO abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorizaçãoaduaneira n°. ...

(1)

), declara que, salvo expressamente indicado em contrário, estes produtos sãode origem preferencial ...

(2)

.Romanian version

Exportatorul produselor ce fac ojiectul acestui document (autorizaţia vamalâ nr. …

(1)

) declará cá,exceptând cazul în care în mod expres este indicat altfel, aceste produse sunt de origine

preferenţialā …

(2)

.Slovenian versionIzvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov

š

t …

(1)

) izjavlja, da,

razen če ni drugače jasno navedeno, ima to blago preferencialno …

(2)

poreklo.Slovak version

Vývozca výrobkov uvedených v tomto dokumente (číslo povolenia …(1)) vyhlasuje, že okrem zreteľne označených, majú tieto výrobky preferenčný pôvod v …

(2)

.Finnish versionTässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o ...

(1)

) ilmoittaa, että nämä tuotteetovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita

(2)

.


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Swedish versionExportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ...

(1)

)försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung

(2)


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ANNEX 5MATTERS APPLICABLE TO CEUTAAND MELILLA

1. For the purpose of the Rules of Origin and Origin Procedures Protocol, in the case of theEU, the term “Party” does not include Ceuta and Melilla.2. Products originating in Canada, when imported into Ceuta and Melilla, shall in allrespects be subject to the same customs regime, including preferential tariff treatment, asthat which is applied to products originating in the customs territory of the EU under

Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republicto the European Communities

. Canada shall apply to imports of products covered by thisAgreement and originating in Ceuta and Melilla the same customs regime, including preferential tariff treatment, as that which is applied to products imported from andoriginating in the EU.3. The rules of origin applicable to Canada under the Rules of Origin and Origin ProceduresProtocol shall apply in determining the origin of products exported from Canada to Ceutaand Melilla. The rules of origin applicable to the EU under the Rules of Origin andOrigin Procedures Protocol shall apply in determining the origin of products exportedfrom Ceuta and Melilla to Canada.4. The provisions of the Rules of Origin and Origin Procedures Protocol concerning theissuance, use and subsequent verification of proofs of origin shall apply to productsexported from Canada to Ceuta and Melilla and to products exported from Ceuta andMelilla to Canada.5. The provisions on cumulation of origin of the Rules of Origin and Origin ProceduresProtocol shall apply to the import and export of products between the EU, Canada andCeuta and Melilla.6. For the purposes mentioned in paragraphs 2, 3, 4 and 5 Ceuta and Melilla shall beregarded as a single territory.7. The Spanish customs authorities shall be responsible for the application of this Article inCeuta and Melilla.


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S

ECTION

XX:G

LOBAL

S

AFEGUARD

M

EASURES

Article 1: General provisions

1. Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTOAgreement on Safeguards.2. The provisions of this Section shall not be subject to the Dispute Settlement provisions of thisAgreement.3. The provisions of this Section shall not be subject to the provisions of Chapter XX:Preferential Rules of Origin.

Article 2: Transparency

1. At the request of the exporting Party, the Party initiating a safeguard investigation or intending to adopt provisional or definitive safeguard measures shall immediately provide:a. the information referred to in Article 12.2 of the WTO Agreement onSafeguards, in the format prescribed by the WTO Committee on Safeguards; b. the public version of the complaint filed by the domestic industry, whererelevant; and;c. a public report setting forth the findings and reasoned conclusions on all pertinent issues of fact and law considered in the safeguard investigation. The publicreport shall include an analysis that attributes injury to the factors causing it and set outthe method used in defining the safeguard measures.2. When information is provided under this Article, the importing Party shall offer to holdinformal consultations with the exporting Party in order to review the information provided.

Article 3: Imposition of definitive measures

1. A Party adopting safeguard measures shall endeavour to impose them in a way that leastaffects bilateral trade.2. The importing Party shall offer to hold informal consultations with the exporting Party inorder to review the matter referred to in paragraph 1. The importing Party shall not adoptmeasures until 30 days have elapsed since the date the offer to consult was made.


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6. TECHNICAL BARRIERS TO TRADE (TBT)CHAPTER XX: TECHNICAL BARRIERS TO TRADE (TBT)Article 1: Scope and Definitions

1. This Chapter applies to the preparation, adoption and application of technical regulations,standards and conformity assessment procedures that may affect trade in goods between theParties.2. This Chapter does not apply to:

(a)

purchasing specifications prepared by a governmental body for production or consumption requirements of governmental bodies ; or

(b)

sanitary and phytosanitary measures as defined in Annex A of the WTO Agreement onthe Application of Sanitary and Phytosanitary Measures.3. Except where this Agreement, including the incorporated provisions of the

TBT Agreement

pursuant to Article 2, of this Chapter defines or gives a meaning to terms, general terms for standardization and procedures for assessment of conformity shall normally have the meaninggiven to them by definitions adopted within the United Nations system and by internationalstandardizing bodies taking into account their context and in the light of the object and purposeof this Chapter.4. All references in this Chapter to technical regulations, standards and conformity assessment procedures shall be construed to include any amendments thereto and any additions to the rulesor the product coverage thereof, except amendments and additions of an insignificant nature.5. The second paragraph of Article X.05 (Extent of Obligations) of Chapter X (Initial Provisionsand General Definitions) does not apply to Articles 3, 7, 8 and 9 of the

TBT Agreement

, asincorporated into this Agreement.

Article 2: Incorporation of the WTO Agreement on Technical Barriers to Trade

1. The following provisions of the WTO Agreement on Technical Barriers to Trade (hereinafter referred to as the “

TBT Agreement”

) are hereby incorporated into and made part of thisAgreement:(a) Article 2 (

Preparation, Adoption and Application of Technical Regulations by Central Government Bodies

);(b) Article 3 (

Preparation, Adoption and Application of Technical Regulations by Local Government Bodies and Non-Governmental Bodies

);


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(c) Article 4 (

Preparation, Adoption and Application of Standards

);(d) Article 5 (

Procedures for Assessment of Conformity by Central Government Bodies

);(e) Article 6 (

Recognition of Conformity Assessment by Central Government Bodies

),without limiting the rights and obligations set out in the Protocol on the MutualAcceptance of the Results of Conformity Assessment Procedures;(f) Article 7 (

Procedures for Assessment of Conformity by Local Government Bodies

);(g) Article 8 (

Procedures for Assessment of Conformity by Non-Governmental Bodies

);(h) Article 9 (

International and Regional Systems

);(i) Annex 1 (Terms and Their Definitions for the Purpose of this Agreement);(j) Annex 3 (Code of Good Practice for the Preparation, Adoption and Application of Standards).2. References to “this Agreement” in the incorporated provisions of the

TBT Agreement

, asincorporated into this Agreement, are to be read, as appropriate, as references to this Agreement(the CETA).3. The term “Members” in the incorporated provisions shall have the same meaning in thisAgreement as it has in the

TBT Agreement

.4. With respect to Articles 3, 4, 7, 8 and 9 of the

TBT Agreement

, the dispute settlement provisions of this Agreement can be invoked in cases where a Party considers that the other Partyhas not achieved satisfactory results under these Articles and its trade interests are significantlyaffected. In this respect, such results shall be equivalent to those as if the body in question werea Party.

Article 3: Co-operation

The Parties shall strengthen their co-operation in the areas of technical regulations, standards,metrology, conformity assessment procedures, market surveillance or monitoring andenforcement activities in order to facilitate the conduct of trade between the Parties, as laid downin Chapter XXX (

Regulatory Co-operation

). This may include promoting and encouraging co-operation between their respective public or private organizations responsible for metrology,standardization, testing, certification and accreditation, market surveillance or monitoring andenforcement activities; and in particular, encouraging their accreditation and conformityassessment bodies to participate in co-operation arrangements that promote the acceptance of conformity assessment results.


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Article 4: Technical Regulations

1. The Parties undertake to co-operate as far as possible to ensure that their technical regulationsare compatible with one another. To this end, if a Party expresses an interest in developing atechnical regulation equivalent or similar in scope to one existing in or being prepared by theother Party, that other Party shall, on request, provide to the other Party, to the extent practicable,the relevant information, studies and data upon which it has relied in the preparation of itstechnical regulations, whether adopted or being developed. The Parties recognize that it may benecessary to clarify and agree on the scope of a specific request, and that confidentialinformation may be withheld.2. A Party that has prepared a technical regulation that it considers to be equivalent to atechnical regulation of the other Party having compatible objective and product scope mayrequest in writing that the other Party recognize it as equivalent. Such a request shall be made inwriting and set out the detailed reasons why the technical regulations should be considered to beequivalent, including reasons with respect to product scope. The Party that does not agree thatthe technical regulations are equivalent shall provide to the other Party, upon request, the reasonsfor its decision.

Article 5: Conformity Assessment

1. The Parties shall observe the terms of the Protocol [x] to this Agreement on the MutualAcceptance of the Results of Conformity Assessment, and of the Protocol [y] to this Agreementon the Mutual Recognition of the Compliance and Enforcement Program regarding GoodManufacturing Practices for Pharmaceutical Products.2. The Agreement on Mutual Recognition between the European Community and Canada, doneat London on 14 May 1998, shall be terminated on the date of entry into force of thisAgreement.


1. Each Party shall ensure that transparency procedures regarding the development of technicalregulations and conformity assessment procedures allow interested persons to participate at anearly appropriate stage when amendments can still be introduced and comments taken intoaccount, except where urgent problems of safety, health, environmental protection or nationalsecurity arise or threaten to arise. Where a consultation process regarding the development of technical regulations and or conformity assessment procedures is open to the public, each Partyshall permit persons of the other Party to participate on terms no less favourable than thoseaccorded to its own persons.2. The Parties shall promote closer cooperation between the standardization bodies locatedwithin their respective territories with a view to facilitating,

inter alia

, the exchange of information about their respective activities, as well as the harmonization of standards based onmutual interest and reciprocity, according to modalities to be agreed by the standardization bodies concerned.


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3. Each Party shall endeavour to allow a period of at least 60 days following its transmission tothe WTO Central Registry of Notifications of proposed technical regulations and conformityassessment procedures for the other Party to provide written comments, except where urgent problems arise, or threaten to arise, regarding safety, health, environmental protection or nationalsecurity. A Party shall give positive consideration to a reasonable request for extending thecomment period.4. (i) Where a Party has received comments on its proposed technical regulations or conformityassessment procedures from the other Party, it shall reply in writing to such comments beforethe adoption of the technical regulation or conformity assessment procedure.(ii) Each Party shall publish or otherwise make publicly available, in print or electronically, itsresponses or a summary of its responses, to significant comments it receives, no later than thedate it publishes the adopted technical regulation or conformity assessment procedure.5. Each Party shall, upon request of the other Party, provide information regarding the objectivesof, legal basis and rationale for, a technical regulation or conformity assessment procedure, thatthe Party has adopted or is proposing to adopt.6. A Party shall give positive consideration to a reasonable request from the other Party,received prior to the end of the comment period following the transmission of a proposedtechnical regulation, to establish or extend the period of time between the adoption of thetechnical regulation and the day upon which it is applicable, except where such delay would beineffective in fulfilling the legitimate objectives pursued.7. Each Party shall ensure that its adopted technical regulations and conformity assessment procedures are publicly available on official websites.8. Where a Party detains at a port of entry a good imported from the territory of the other Partyon the grounds that the good has failed to comply with a technical regulation, it shall withoutundue delay notify the importer of the reasons for the detention of the good.

Article 7: Marking and Labelling

In accordance with Article 2 of the

TBT Agreement

, with respect to technical regulations relatingto labelling or marking requirements, the Parties shall ensure they are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade.For this purpose, such labelling or marking requirements shall not be more trade-restrictive thannecessary to fulfill a legitimate objective, taking account of the risks that non-fulfillment wouldcreate.


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Article 8: Management of the Technical Barriers to Trade Chapter

1. The Parties agree to co-operate in the matters covered by this Chapter. In particular, theyagree that the [xxx – name of Institutional Body] functions include:

ThePartiesnotethattheCommitteestructureisbeing discussedbyChiefs andInstitutionalLeads.

(a) to manage the implementation of this Chapter;(b) promptly to address any issue that a Party raises related to the development, adoption or application of standards, technical regulations or conformity assessment procedures;(c) on a Party’s request, to facilitate discussion of the assessment of risk or hazard conducted bythe other Party;(d) to encourage cooperation between the standardization and conformity assessment bodies of the Parties;(e) to exchange information on standards, technical regulations, or conformity assessment procedures including those of third parties or international bodies where there is a mutual interestin doing so;(f) to review this Chapter in the light of any developments in the WTO TBT Committee or under the

TBT Agreement

, and, [if necessary, developing recommendations for amendments to thisChapter] for consideration by the [xxx – name of Institutional Body];(g) to take any other steps that the Parties consider will assist them in implementing this Chapter and the

TBT Agreement

and in facilitating trade between the Parties.(h) to report to the [xxx – name of Institutional Body] on the implementation of this Chapter asappropriate;]2. Where the Parties are unable to resolve a matter covered under this Chapter through the [xxx – name of Institutional Body], the Parties may establish ad hoc technical working groups with aview to identifying solutions that would facilitate trade. Such groups shall be jointly led by theParties. Where a Party declines a request from the other Party to establish a working group, itshall, on request, explain the reasons for its decision.3. Any information that is provided at the request of a Party pursuant to the provisions of thisChapter shall be provided in print or electronically within a reasonable period of time. A Partyshall endeavour to respond to each such request within 60 days.4. The Parties shall be represented at the [xxx – name of Institutional Body] by:(a) in the case of the European Union, the European Commission; and


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2. Post-implementation reviews of technical regulations or related standards;3. Development and dissemination of information for consumer use related to motor vehicleregulations or related standards;4. Exchange of research, information and results linked to the development of new vehiclesafety regulations or related standards, and advanced emission reduction and electricvehicle technologies; and5. Exchange of available information on the identification of safety-related or emission-related defects and non-compliances with technical regulations.

Article IIIForms of Cooperation

The Parties intend to maintain an open and continuing dialogue in the area of motor vehicletechnical regulations or related standards. To this end, the Parties shall endeavour to:1. Meet at least annually (including meetings held on the margins of WP.29 Sessions), byvirtue of video-conferences or, if directly, on an alternating basis in Canada and theEuropean Union;2. Share information regarding domestic and international programs and agendas, including planning of research programs linked to the development of new regulations or relatedstandards;3. Contribute jointly to encouraging and promoting greater international harmonization of technical requirements through multilateral fora, such as

1998 Agreement Concerning the Establishment of Global Technical Regulations

as administered by WP.29, includingthrough cooperation in the planning of initiatives in support of such activities;4. Share and discuss research and development plans in the areas of motor vehicle safetyand environmental technical regulations or related standards;5. Conduct joint analyses, develop methodologies and approaches, as mutually beneficial, practical and convenient, to assist and facilitate in the development of motor vehicletechnical regulations or related standards;6. Develop additional provisions for cooperation.


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Article IVTechnical Regulations

The Parties note the importance of the Technical Barriers to Trade (TBT) Chapter to facilitatingtrade in automobiles between the Parties and, in particular, reaffirm their obligations set out inArticle X.4 of that Chapter with respect to technical regulations for motor vehicles and their parts.

Article VCanadian Incorporation of UN Regulations

1. The Parties acknowledge that Canada has incorporated, with the adaptations that itconsidered necessary, a number of technical regulations contained in UN Regulations into theCanadian Motor Vehicle Safety Regulations, as listed in Table I.2. Canada maintains its right to modify, at any given time, its law, including by amending or revising which UN Regulations, or the manner in which or the extent to which such Regulationsare incorporated into its law. Before introducing such changes, it will inform the European Unionand be ready to provide information on the rationale for these changes. It will maintain therecognition of the relevant UN Regulations, unless doing so would provide for a lower level of safety as compared with the amendments introduced or compromise North American integration.3. The Parties shall engage in technical consultations with a view to determining, no later than 3 years after the entry into force of the Agreement, whether the technical regulationscontained in the UN Regulations listed in Table II should also be incorporated into the Canadian

Motor Vehicle Safety Regulations

, with any adaptations Canada considers necessary. Thesetechnical regulations should be incorporated, unless doing so would provide for a lower level of safety as compared with the Canadian regulations or compromise North American integration.The Parties shall also engage in further technical consultations to determine whether any other technical regulations should be considered for inclusion in Table II at a later stage.4. Canada shall establish and maintain a list of technical regulations contained in UNRegulations that are incorporated into the Canadian

Motor Vehicle Safety Regulations

. Canadashall make that list publicly available.5. With the objective of promoting regulatory convergence, the Parties shall exchangeinformation, to the extent practicable, on their respective technical regulations related to motor vehicle safety.


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Article VIPositive Consideration of Other Party’s Technical Regulations

When developing new technical regulations for motor vehicles and their parts, or whenmodifying existing ones, a Party shall consider the technical regulations of the other Party,including those established under the framework of UNECE WP.29. A Party shall provide, atthe request of the other Party, an explanation on the extent to which it considered the technicalregulations of that other Party when it developed its new technical regulations.

Article VIIRevision Clause: Cooperation with the United States of America

The Parties note their mutual interest in cooperation with the United States of America in thefield of motor vehicle technical regulations. If the European Union and the United Statesconclude an agreement or an arrangement dealing with the harmonization of their respectivetechnical regulations related to motor vehicles, the Parties shall cooperate with a view todetermining whether the harmonization achieved by that agreement or arrangement should beimplemented between the European Union and Canada.


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approval of vehicles with regard totheir front and rear protectivedevices (bumpers etc) No. 78 Uniform provisions concerning theapproval of vehicles of categoriesL1, L2, L3, L4 and L5 with regardto brakingCMVSS 122* Motorcycle BrakeSystems No. 8 Uniform provisions concerning theapproval of motor vehiclesheadlamps emitting anasymmetrical passing beam or adriving beam or both an equippedwith halogen filament lamps(H1, H2, H3, HB3, HB4, H7, H8,H9, HIR1, HIR2 and/or H11)CMVSS 108* Lighting Systemand RetroreflectiveDevices No. 20 Uniform provisions concerning theapproval of motor vehiclesheadlamps emitting anasymmetrical passing beam or adriving beam or both and equippedwith halogen filament lamps (H4lamps)CMVSS 108* Lighting Systemand RetroreflectiveDevices No. 31 Uniform provisions concerning theapproval of power-driven vehicle'shalogen sealed-beam headlamps(HSB) emitting an Europeanasymmetrical passing-beam or adriving-beam or bothCMVSS 108* Lighting Systemand RetroreflectiveDevices No. 57 Uniform provisions concerning theapproval of headlamps for motor cycles and vehicles treated as suchCMVSS 108* Lighting Systemand RetroreflectiveDevices No. 72 Uniform provisions concerning theapproval of motor cycle headlampsemitting an asymmetrical passing beam and a driving beam andequipped with halogen lamps (HS1lamps)CMVSS 108* Lighting Systemand RetroreflectiveDevices No. 13H(electronicstabilitycontrol only)Uniform provisions concerning theapproval of passenger cars withregard to braking (electronicstability control only)CMVSS 126 Electronic StabilityControl Systems No. 60 Uniform provisions concerning theapproval of two-wheeled motor cycles and mopeds with regard todriver-operated controls includingCMVSS 123 MotorcycleControls andDisplays


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the identification of controls, tell-tales and indicators No. 81 Uniform provisions concerning theapproval of rear-view mirrors of two-wheeled power-drivenvehicles with or without side car,with regard to the mounting of rear-view mirrors on handlebarsCMVSS 111 Mirrors*As the regulation read on February 13, 2013.Table IIList referred to in Article V.3 of [text]UN Regulation Title of UN Regulation No. 12 Uniform provisions concerning the approval of vehicles with regard tothe protection of the driver against the steering mechanism in the eventof impact No. 17 Uniform provisions concerning the approval of vehicles with regard tothe seats, their anchorages and any head restraints No. 43 Uniform provisions concerning the approval of safety glazing materialsand their installation on vehicles No. 48 Uniform provisions concerning the approval of vehicles with regard tothe installation of lighting and light-signalling devices No. 87 Uniform provisions concerning the approval of daytime running lampsfor power-driven vehicles No. 53 Uniform provisions concerning the approval of category L3 vehicleswith regard to the installation of lighting and light-signalling devices No. 116 Uniform technical prescriptions concerning the protection of motor vehicles against unauthorized use No. 123 Uniform provisions concerning the approval of adaptive front-lightingsystems (AFS) for motor vehicles


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7. SANITARY AND PHYTOSANITARY MEASURES (SPS)

CHAPTER [XX]SANITARY AND PHYTOSANITARY MEASURES

Article 1

Recognition and Termination of the Veterinary Agreement

The Parties recognise the achievements that have been accomplished under the Agreement between

the European Community and the Government of Canada on sanitary measures to protect publicand animal health in respect of trade in live animals and animal products

and confirm their intention to continue this work under the CETA

.

The Agreement done at Ottawa on 17 December 1998, as amended, is terminated from the date of entry into force of this Agreement.

Article 2

Objectives

The objectives of this Chapter are to:a) protect human, animal and plant life or health while facilitating trade ; b) ensure that the Parties’ sanitary and phytosanitary (SPS) measures do not create unjustified barriers to trade

;

c) further the implementation of the WTO

Agreement on the Application of Sanitary and Phytosanitary Measure

s (WTO SPS Agreement).

Article 3

DefinitionsWTO SPS Agreement

means the WTO

Agreement on the Application of Sanitary and Phytosanitary Measures

;

Sanitary or phytosanitary measure

means any measure referred to in Annex A, paragraph 1 of theWTO SPS Agreement;For the purposes of this Chapter, definitions in Annex A of the SPS Agreement apply, as well asthose adopted by Codex Alimentarius (Codex), the World Organisation for Animal Health (OIE),and the International Plant Protection Convention (IPPC). In the event of an inconsistency betweenthe definitions adopted by Codex, the OIE, the IPPC and the definitions set out in under the WTOSPS Agreement, the definitions set out in the WTO SPS Agreement shall prevail.


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additional guarantees in respect of imports of live animals, animal products and animal by- products appropriate to the status recognized by the importing Party, including the specialconditions identified in Annex V.5. The Parties also recognise the concept of compartmentalisation and agree to cooperate on thismatter.

Plants and plant products

1. When establishing or maintaining its phytosanitary measures, the importing Party shall takeinto account,

inter alia

, the pest status in an area, such as pest free areas, pest free places of production, pest free production sites, areas of low pest prevalence, as well as protected zonesestablished by the exporting Party.2. If the Parties agree on principles and guidelines for the recognition of regional conditions, theParties shall include them in Annex III. [Process of Recognition of Regional Conditions].

Article 7

Equivalence

1. The importing Party shall accept the SPS measures of the exporting Party as equivalent to itsown if the exporting Party objectively demonstrates to the importing Party that its measureachieves the importing Party’s appropriate level of protection.2. Annex IV sets out principles and guidelines for the determination, recognition andmaintenance of equivalence.3. Annex V sets out:a) The areas for which the importing Party recognizes that the measures of the exporting Partyare equivalent to its own, and b) The areas for which the importing Party recognizes that the fulfilment of the specifiedspecial conditions, combined with the exporting Party’s measures, achieve the importingParty’s appropriate level of protection.

Article 8

Trade Conditions

1. The importing Party shall make available its general sanitary and phytosanitary importrequirements for all commodities. For a specific commodity jointly identified as a priority bythe Parties, the importing Party shall establish specific import requirements, unless the Parties


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jointly decide otherwise. In identifying which commodities are priorities, the Parties shallcooperate to ensure the efficient management of their available resources. The specific importrequirements should be applicable to the total territory of the exporting Party.2. For a commodity identified as a priority pursuant to paragraph 1, the importing Party shallundertake, without undue delay, the necessary process for establishing specific importrequirements for that commodity. Once these specific import requirements have beenestablished, the importing Party shall take the necessary steps, without undue delay, to allowtrade on the basis of these import requirements.3. In order to establish the specific import requirements, the exporting Party shall, upon requestof the importing Party:a) provide all relevant information required by the importing Party; and b) give reasonable access to the importing Party for inspection, testing, audit and other relevant procedures.4. For the import of commodities where establishments or facilities are required to be includedon a list by the importing Party, the importing Party shall approve establishments or facilitieswhich are situated on the territory of the exporting Party without prior inspection of individualestablishments if:a) the exporting Party has requested such an approval for a given establishment or facility,accompanied by the appropriate guarantees, and b) the conditions and procedures set out in Annex VI are fulfilled.The importing Party shall make its lists publicly available.5. Consignments of regulated commodities shall be normally accepted without pre-clearance of the commodity on a consignment basis, unless the Parties agree otherwise.6. The importing Party may require that the relevant competent authority of the exporting Partyobjectively demonstrate, to the satisfaction of the importing Party, that the importrequirements may be fulfilled or are fulfilled.7. Annex VII sets out procedures that the Parties should follow related to specific importrequirements for plant health.


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4. A Party may collect fees for the costs incurred in conducting frontier checks which should notexceed the recovery of the costs.

Article 12

Notification and Information Exchange

1. Each Party shall notify the other Party without undue delay of:(a) significant changes in pest/disease status, such as the presence and evolution of diseases in Annex II [Process of Recognition of Regional Conditions];(b) findings of epidemiological importance with respect to animal diseases, which arenot in Annex II; or which are new diseases; and(c) significant food safety issues relating to products traded between the Parties.2. The Parties will endeavour to exchange information on other relevant issues including:(a) changes in their respective sanitary or phytosanitary measures;(b) any significant changes to the structure, organisation of their competent authorities;(c) on request, the results of a Party’s official controls and a report concerning the resultsof the controls carried out;(d) the results of import checks provided for in Article 9 (Import Checks) in case of rejected or non-compliant consignments of products; and(e) on request, risk analyses and scientific opinions, relevant to this Chapter and produced under the responsibility of a Party.3. Unless otherwise decided by the Committee, when the information referred to in paragraph 1or 2 has been made available via notification to the WTO or relevant international standardsetting body in accordance with the relevant rules, the requirements in paragraphs 1 and 2 asthey apply to that information are fulfilled.

Article 13

Technical Consultations

Where a Party has significant concerns regarding food safety, plant health, or animal health,or regarding a measure proposed or implemented by the other Party, that Party can requesttechnical consultations. The other Party should respond to such a request without undue delay.Each Party shall endeavour to provide all the information necessary to avoid a disruption in tradeand/or to reach a mutually acceptable solution.


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Article 14

Emergency Measures

1. Emergency measures shall be notified to the other Party within 24 hours of the decision toimplement them and, on request, technical consultations regarding the situation shall be heldwithin 10 days of the notification. The Parties shall consider any information providedthrough such consultations.2. The importing Party shall consider information provided, in a timely manner, by the exportingParty when making decisions with respect to consignments that, at the time of adoption of emergency measures, are being transported between the Parties.

Article 15

Joint Management Committee for Sanitary and Phytosanitary Measures

1. The Parties hereby establish a Joint Management Committee (JMC) for SPS Measures,hereafter called the Committee, comprising regulatory and trade representatives of each Partywho have responsibility for SPS measures.2. The functions of the Committee include:a) To monitor the implementation of this Chapter and to consider any matter relating tothis Chapter, and to examine all matters which may arise in relation to itsimplementation; b) To provide direction for the identification, prioritization, management and resolution of issues;c) To address any requests by the Parties for the modification of import checks;d) At least once a year, to review the Annexes to this Agreement, notably in light of progress made under the consultations provided for under this Agreement. Following itsreview, the Committee may decide to amend the Annexes to this Chapter. The Partiesmay approve the decision subject to their respective applicable internal requirements and procedures. The decision shall enter into force on such date as the Parties may agree;e) To monitor the implementation of the decisions referred to in paragraph (d), above, aswell as the operation of measures referred to under paragraph (d) above

;

f) To provide a regular forum for exchanging information relating to each Party’sregulatory system, including the scientific and risk assessment basis for SPS measures;


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g) To prepare and maintain a document detailing the state of discussions between theParties on their work on recognition of the equivalence of specific SPS measures;3. In addition, the Committee may,

inter alia

:a) identify opportunities for greater bilateral engagement, including enhancedrelationships, which may include exchanges of officials; b) discuss at an early stage, changes to, or proposed changes to, measures beingconsidered;c) facilitate improved understanding between Parties related to the implementation of theWTO SPS Agreement, promoting cooperation between Parties on SPS issues under discussion in multilateral fora, including the WTO SPS Committee and internationalstandard-setting bodies, as appropriate;d) identify and discuss, at an early stage, initiatives that have an SPS component andwould benefit from cooperation.4. The Committee may establish working groups consisting of expert-level representatives of theParties, to address specific SPS issues.5. A Party may refer any SPS issue to the Committee. The Committee should consider anymatter referred to it as expeditiously as possible.6. [In the event that the Committee is unable to resolve an issue expeditiously, the Committeeshall, upon request of a Party, report promptly to the CETA Oversight Body

to be finalized through institutional chapter]

7. Unless the Parties otherwise agree, the Committee shall meet and establish its work programno later than six months following the entry into force of this Agreement, and its rules of procedure no later than one year after the entry into force of this Agreement.8. Following its initial meeting, the Committee shall meet as required, normally on an annual basis. If agreed by the Parties, a meeting of the Committee may be held by videoconference or teleconference. The Committee may also address issues out of session by correspondence.9. [The Committee shall report annually on its activities and work program to the CETAOversight Body

tobefinalizedthrough institutional chapter

]


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10. Upon entry into force of this Agreement, each Party shall designate and inform the other Partyof a Contact Point to coordinate the Committee’s agenda and to facilitate communications onSPS matters.


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Annex II

REGIONAL CONDITIONS]A. DISEASES FOR WHICH REGIONALISATION DECISIONS CAN BE TAKEN

Disease

Foot-and-mouth diseaseVesicular stomatitisSwine vesicular diseaseRinderpestPeste des petits ruminantsContagious bovine pleuropneumoniaLumpy skin diseaseRift Valley fever BluetongueSheep pox and goat poxAfrican horse sicknessAfrican swine fever Classical swine fever Notifiable avian influenza Newcastle diseaseVenezualan equine encephalomyelitisEpizootic haemorrhagic disease


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Aquatic Diseases

The list of aquatic diseases is to be discussed further by the Parties on the basis of the International Aquatic AnimalHealth code of the OIE.


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Annex III

PROCESS OF RECOGNITION OF REGIONAL CONDITIONSA. ANIMAL DISEASES


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Annex IV

GUIDELINES FOR THE DETERMINATION, RECOGNITION AND MAINTENANCE OFEQUIVALENCE

Maintenance of Equivalence

1. If a Party intends to adopt, modify, or repeal a measure in an area that had been subject to arecognition of equivalence as set out in paragraph 3(a) of Article 7 or a recognition described in paragraph 3(b) of Article 7, that Party should:a) evaluate whether the adoption, modification or repeal of the measure may affect the recognition; b) notify the other Party of the intended adoption, modification or repeal of the measure as well asof the evaluation in paragraph (a). Such notification should take place at an early and appropriatestage, when amendments can still be introduced and comments taken into account.2. If a Party adopts, modifies, or repeals a measure in an area, the importing Party should continueto accept either the recognition of equivalence as set out in paragraph 3(a) of Article 7 or therecognition described in paragraph 3(b) of Article 7, as the case may be, in that area until it hascommunicated to the exporting Party whether special conditions must be met, and if so, providedthe special conditions to the exporting Party. The importing Party should consult with theexporting Party in developing these special conditions.


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EU Standards Canadian Standards Special Conditions Canadian Standards EU Standards Special Conditions

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Semen

Cattle

Animal Health Directive88/407Health of Animals Act andRegulationsSemen collection centre clinically free of paratuberculosisHealth of Animals Act andRegulationsDC Manual of Procedures, Sec.15Directive88/407Leucosis - (serum) ELISAIn addition, when possible, the uterine dam of the prospective donor bull should be subjected to anELISA test for EBL, subsequent to the weaning of the prospective donor, with negative results.This test of the uterine dam is required to export semento the EU Member States when semen is collected froma donor bull before reaching age 24 months, and anegative result to an ELISA test is required after reaching that age. This test is not required when the prospective donor bull originates from a Canada HealthAccredited Herd for EBL (CHAH—EBL).IBR - (serum) ELISAThe semi-annual testing for IBR of all resident animalsmust be performed at IBR negative facilities which areapproved for export to the European Union. Only IBR negative facilities are allowed to export semen to theEuropean Union

.

Embryos

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Animal Health Directive89/556Health of Animals Act andRegulations Permit conditionsHealth of Animals Act andRegulationsCFIA Embryo Export ApprovalProgramDirective89/556Decisions2006/1682007/240The donor females spent the six months immediately prior to the collection within Canada in no more thantwo herds:- which, according to official findings, were freefrom tuberculosis,- which, according to official findings, were freefrom brucellosis,- which were free from enzootic bovine leucosisor in which no animal showed clinical signs of enzootic bovine leucosis during the previousthree years,- in which no bovine animal showed clinicalsigns of infectious bovinerhinotracheitis/infectious pustular vulvovaginitisduring the previous 12 months.There was no outbreak of epizootic haemorrhagicdisease within 10 km of where the donor female islocated during the 30 days prior to collection.The semen is collected/stored in collection/storagecentres approved by the competent authority of a thirdcountry authorized to import semen to the EU or wasexported from EU.

Fresh Meat

R

uminants, equidae, porcine, poultry, farmed game from deer, rabbit and ratite


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Public health Regulations852/2004853/2004854/20042073/20052075/2005Meat Inspection Act andRegulationsFood and Drugs Act andRegulations(i) Compliance with Canadian rules onTSE(ii) Prolonged delayed evisceration not permitted(iii) Compliance with microbiological foodsafety criteria of the importing Party.Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/20042073/20052075/2005

SeeAppendix A

Meat Products

Ruminants, equidae, pigs, poultry and farmed game

Public Health Regulation852/2004853/2004854/20042073/2005Meat Inspection Act andRegulationsFood and Drugs Act andRegulations(i) Fresh meat used to make the productsmust comply with applicable specialconditions.(ii) Compliance with product standards of the importing Party.(iii) Compliance with microbiological foodsafety criteria of the importing Party.Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/20042073/2005(i) Fresh meat used to make the products must complywith applicable special conditions.(ii) Compliance with product standards of theimporting Party.(iii) Compliance with microbiological food safetycriteria of the importing Party.

Minced Meat, Meat Preparations


Public Health Regulations852/2004853/2004854/20042073/2005Meat Inspection Act andRegulationsFood and Drugs Act andRegulations(i) Fresh meat used to make the productsmust comply with applicable specialconditions.(ii) Compliance with product standards of the importing Party.(iii) Compliance with microbiological foodsafety criteria of the importing Party.Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/20042073/2005(i) Fresh meat used to make the products must complywith applicable special conditions.(ii) Compliance with product standards of theimporting Party.(iii) Compliance with microbiological food safetycriteria of the importing Party.


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Processed animal proteins for human consumption


Public health Regulation852/2004853/2004854/2004Meat Inspection Act andRegulationsFood and Drugs Act andRegulations(i) Fresh meat used to make the productsmust comply with applicable specialconditions(ii) Compliance with product standards of the importing Party.Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/2004(i) Fresh meat used to make the products must complywith applicable special conditions(ii) Compliance with product standards of theimporting Party.

Rendered animal fat intended for human consumption


Public health Regulation852/2004853/2004854/2004Meat Inspection Act andRegulationsFood and Drugs Act andRegulations(i) Fresh meat used to make the productsmust comply with applicable specialconditions(ii) Compliance with product standards of the importing PartyMeat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/2004(i) Fresh meat used to make the products must complywith applicable special conditions(ii) Compliance with product standards of theimporting Party

Animal casings for human consumption

Cattle, sheep, goats and pigs


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Public health Regulations852/2004853/2004854/2004Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsCompliance with Canadian rules on TSE Meat Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/2004Compliance with EU rules on TSE

Fishery products and live bivalve molluscs

Fish and fishery products for human consumption

Public Health Regulations852/2004853/2004854/20042073/20052074/2005Fish Inspection Act andRegulationsFood and Drugs Act andRegulationsSmoked fish packed in hermetically sealedcontainers that are not frozen, must containa salt level not less than 9% (water phasemethod).The Canadian and EU systems are deemedto provide an equivalent level of protectionwith respect to microbiologicalrequirements. However, themicrobiological criteria used by Canadaand the EU for end product monitoringdiffer in some aspects. For exported products it is the responsibility of theexporter to assure their products meet thefood safety criteria of the importingcountryFish Inspection Act andRegulationsFood and Drugs Act andRegulationsRegulations852/2004853/2004854/20042073/20052074/2005The Canadian and EU systems are deemed to providean equivalent level of protection with respect tomicrobiological requirements. However, themicrobiological criteria used by Canada and the EU for end product monitoring differ in some aspects. For exported products it is the responsibility of the exporter to assure their products meet the food safety criteria of the importing country

Deheaded eviscerated fish for human consumption

Animal Health Directive2006/88Health of Animals Act andRegulations Part XVIReportable DiseaseRegulationsHealth of Animals Act andRegulations Part XVIDirective2006/88Regulation1251/2008


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Live bivalve molluscs for human consumption, including echinoderms, tunicates and marine gastropods

Public Health Regulations852/2004853/2004854/20042074/2005Fish Inspection Act andRegulationsFood and Drugs Act andRegulationsThe Canadian and EU systems are deemedto provide an equivalent level of protectionwith respect to microbiologicalrequirements. However, themicrobiological criteria used by Canadaand the EU for end product monitoringdiffer in some aspects. For exported products it is the responsibility of theexporter to assure their products meet thefood safety criteria of the importingcountryFish Inspection Act andRegulationsManagement of ContaminatedFisheries Regulations under theFisheries ActFood and Drugs Act andRegulationsRegulations852/2004853/2004854/20042074/2005LBM must be monitored for DSP toxins on a risk basedlevelThe Canadian and EU systems are deemed to providean equivalent level of protection with respect tomicrobiological requirements. However, themicrobiological criteria used by Canada and the EU for end product monitoring differ in some aspects. For exported products it is the responsibility of the exporter to assure their products meet the food safety criteria of the importing country

Fish caught under the authority of a recreational fishing licence from Canada


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Public Health Fish Inspection Act andRegulationsRegulations852/2004853/2004854/20042073/2005For fish caught under the authority of a recreationalfishing licence from Canada with the name of theimporter, the following conditions have to be fulfilled:(i) The fish was caught in Canadian fisheries waters onthe dates while the licence is valid, in accordance withCanadian regulations on sport fishing and that possession limits have been respected;(ii) The fish has been eviscerated under appropriatehygiene and preservation measures;(iii) The fish is not a toxic species nor a species thatmay contain biotoxins;(iv) The fish must be introduced into the Union withinone month following the last date of validity of therecreational fishing licence and is not intended to bemarketed. A copy of the recreational fishing licencehas to be attached to the accompanying document.

Milk and Milk Products for human consumption

Pasteurized or cheeses from not pasteurised (or low heat treated) and raw milk maturated for at least 60 days


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Public Health Regulation852/2004853/2004854/2004Health of Animals Act andRegulations Section 34.Food and Drugs Act andRegulations(Section B008)Canada Agricultural ProductsAct and Dairy ProductsRegulationsThe Canadian and EU systems are deemedto provide an equivalent level of protectionwith respect to microbiologicalrequirements. However, themicrobiological criteria used by Canadaand the EU for end product monitoringdiffer in some aspects. For exported products it is the responsibility of theexporter to assure their products meet thefood safety criteria of the importingcountryFood and Drugs Act andRegulations (Section B008)Canada Agricultural ProductsAct and Dairy ProductsRegulationsDecision2011/163Regulation852/2004853/2004854/2004605/2010Canada to evaluate HACCP systems of establishmentswhich are not FSEP-HACCP recognized to ensure theyare operating under HACCP principles.Two signatures are required on the export certificate:animal health attestations are signed by an officialveterinarian; public health related attestations aresigned by an official inspector.The Canadian and EU systems are deemed to providean equivalent level of protection with respect tomicrobiological requirements. However, themicrobiological criteria used by Canada and the EU for end product monitoring differ in some aspects. For exported products it is the responsibility of the exporter to assure their products meet the food safety criteria of the importing country

Animal casings not for human consumption

Pigs

Animal Health Regulation1069/2009Health of Animals Act andRegulations Part IV

Bones, horns and hooves (except meals) and their Products not for human consumption

Animal health Health of Animals Act andRegulationsRegulation1069/2009Certificate as per Decision 97/534


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Blood and Blood Products not intended for human consumption

Ruminant

Animal Health

Regulation1069/2009Health of Animals Act andRegulations Part IV and PartXIVFeeds Act and RegulationsCompliance with Canadian rules on TSE

Apiculture products not for human consumption

Animal Health Regulation1069/2009Health of Animals Act andRegulations Part VI. Industryconsultation.Must be subjected to treatment, i.e. freezedrying, irradiation, vacuum packaging.Health of Animals Act andRegulationsDC Manual of Procedures,Honeybee prohibition order Directive AH-95-BP/PA-01Section 57, Health of AnimalsAct and RegulationsRegulation1069/2009Bee products used for animal or human feed or industrial use is not restricted.Bee products used for bee feeding must be treated.

Wool, feathers and hair

Wool


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(xi) Regular check on general hygiene: In addition to Canadian operational and preoperational sanitationrequirements, the products testing requirements for E. coli and Salmonella in the section on USA this chapter must be implemented.(xii) Compliance with microbiological food safety criteria of the importing Party.

B. Phytosanitary Measures

Tobeagreedatalater stage


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Annex VI

APPROVAL OF ESTABLISHMENTS OR FACILITIES

The conditions for the purpose of Article 8(4)(b) are as follows:a. The import of the product has been authorized, if so required, by the Competent Authority of the importing Party; b. The establishment or facility concerned has been approved by the Competent Authority of theexporting Party;c. The Competent Authority of the exporting Party has the authority to suspend or withdraw theapproval of the establishment or facility; andd. The exporting Party has provided any relevant information requested by the importing Party.


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Annex VII

PROCEDURE RELATED TO SPECIFIC IMPORT REQUIREMENTS FOR PLANTHEALTH

A key objective of this procedure is that the importing Party establishes and updates, to the bestof its ability, a list of regulated pests for commodities where a phytosanitary concern exists in theimporting Party.1. For a specific commodity jointly identified as a priority by the Parties, the importing Partyshould establish a preliminary list of pests within a timeframe jointly determined by theParties once it has received from the exporting Party:a) information on the pest status in the exporting Party relating to the pests regulated by at leastone of the Parties; b) information on the pest status of other pests occurring in its territory based on internationaldatabases and other available sources.2. The preliminary list of pests of an importing Party may include pests that are already regulatedin its territory. It may also include potential quarantine pests for which the importing Partymay require a pest risk analysis should a commodity be confirmed as a priority in accordancewith paragraph 3.3. For a commodity:a) for which a preliminary list of pests has been established pursuant to paragraph 2; b) which the Parties confirm is a priority; andc) for which the exporting Party has provided all relevant information required by the importingParty,the importing Party should undertake the steps necessary to establish its regulated pest list aswell as the specific import requirements for that commodity.4. In cases where the importing Party provides for more than one phytosanitary measure to meetthe specific import requirements for a specific commodity, the competent authority of theexporting Party should communicate to the importing Party which measure or measures it willuse as the basis for certification.


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Annex VIII

PRINCIPLES AND GUIDELINES FOR CONDUCTING AN AUDIT OR VERIFICATION


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Annex IX

EXPORT CERTIFICATIONModel attestation for health certificates for animals and animal products

Official health certificates will cover consignments of products being traded between the Parties.

Health attestations:

(a) equivalence agreed - Model health attestation to be used (equivalence for measures or certification systems). Refer to Annex V;“The (insert product) herein described, complies with the relevant (Union/Canada) (*) standards andrequirements which have been recognized as equivalent to the (Canada/Union (*)) standards andrequirements as prescribed in Annex V of the CETA SPS [Cda: chapter] and the specialconditions as laid down in the same annex V(*).* Delete as appropriate.”(b) Until certificates on the basis of equivalence have been adopted, existing certification shallcontinue to be used.

Official languages for certificationImport into the Union

The certificate must be drawn up in at least one of the official languages of the Member State of the border inspection post of introduction of the consignment into the Union.

Import into Canada

The certificate must be drawn up in one of the official languages of Canada.

Means of certification

The exchange of original certificate(s) information may occur by paper-based systems and / or securemethods of electronic data transmission offering equivalent certification guarantees. Where the exportingParty elects to provide electronic official certification the importing Party must have determined thatequivalent security guarantees are being provided, including the use of digital signature and non-repudiation mechanism. The importing Party's agreement for the exclusive use of electronic certificationcan either be recorded through correspondence in one of the Annexes to the CETA SPS chapter or by correspondence in accordance with Article 15(8) to the CETA SPS chapter.The Union may lay down its import certificates for live animals and animal products from Canada with anequivalence status as referred to in Annex V in TRACES.


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Annex X

IMPORT CHECKS AND FEES

A Frequencies of checksFrequencies of frontier checks on consignments of live animals, animal products and animal by- productsThe Parties may modify any frequency rate, within their responsibilities, as appropriate, takinginto account the nature of any checks applied by the exporting Party prior to export, theimporting Party’s past experience with products imported from the exporting Party, any progressmade toward the recognition of equivalence, or as a result of other actions or consultations provided for in this Agreement.

Type of frontier check Normal rate as per Article 9 (1)[Import checksand inspectionfees]

1. Documentary and identity

Both Parties will perform documentary and identity checks on all consignments

2. Physical Checks

Live animals

100%

Semen/embryos/ova

10%


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Animal products for human consumption

Fresh meat including offal, and products of the bovine, ovine, caprine, porcine andequine species defined in Council Directive 92/5/EECWhole eggsLard and rendered fatsAnimal casingsGelatinPoultry meat and poultry meat productsRabbit meat, game meat (wild/farmed) and productsMilk and milk productsEgg productsHoneyBone and bone productsMeat preparations and minced meatFrogs’ legs and snails10%


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Animal products not for human consumption

Lard and rendered fatsAnimal casingsMilk and milk productsGelatinBone and bone productsHides and skins ungulatesGame trophiesProcessed petfoodRaw material for the manufacture of petfoodRaw material, blood, blood products, glands and organs for pharmaceutical/technicaluseProcessed animal protein (packaged)Bristles, wool, hair and feathersHorns, horn products, hooves and hoof productsApiculture productsHatching eggsManureHay and straw10%


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Processed animal protein not for human consumption (bulked)

100 % for sixconsecutiveconsignments (as per CommissionRegulation (EU) No 142/2011implementingRegulation (EC) No 1069/2009), if these consecutivetests provenegative, randomsampling shall bereduced to 20 %of subsequent bulk consignmentsfrom the samesource. If one of these randomsampling proves positive, thecompetentauthority mustsample eachconsignment fromthe same sourceuntil sixconsecutive testsagain provenegative.

Live bivalve molluscan shellfish

15%

Fish and fishery products for human consumption

Fish products in hermetically sealed containers intended to render them stable atambient temperatures, fresh and frozen sigh and dry and/or salted fisheries products.Other fishery products.Live crustaceans or fresh headed and degutted fish without other manual processing.15%2%For the purposes of this Annex, “consignment” means a quantity of products of the same type, covered by the samehealth certificate or document, conveyed by the same means of transport, consigned by a single consignee andoriginating from the same exporting Party or part of such Party.


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8. CUSTOMS AND TRADE FACILITATIONCHAPTER XCUSTOMS AND TRADE FACILITATIONArticle X-1: Objectives and Principles

1. The Parties acknowledge the importance of customs and trade facilitation matters in theevolving global trading environment.2. The Parties shall to the extent possible cooperate and exchange information, includinginformation on best practices, for the purpose of promoting the application of and compliancewith the trade facilitation measures agreed upon under this Agreement.3. The Parties agree that measures to facilitate trade shall not hinder mechanisms to protect persons through effective enforcement of and compliance with national requirements.4. The Parties agree that import, export and transit requirements and procedures shall be nomore administratively burdensome or trade restrictive than necessary to achieve legitimateobjectives.5. The Parties agree that international trade and customs instruments and standards shall be the basis for import, export and transit requirements and procedures, where such instruments andstandards exist, except where they would be an inappropriate or ineffective means for thefulfillment of the legitimate objectives pursued.

Article X-2: Transparency

1. Each Party shall publish or otherwise make available, including through electronic means, alltheir legislation, regulations, judicial decisions and administrative policies relating to itsrequirements for imported or exported goods.2. Each Party shall endeavour to make public, including on the internet, any regulations andadministrative policies governing customs matters that it proposes to adopt and provideinterested persons the opportunity to comment prior to their adoption.3. Each Party shall designate or maintain one or more contact points to address inquiries byinterested persons concerning customs matters and make available on the internetinformation concerning the procedures for making such inquiries.


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Article X-3: Release of Goods

1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties and reduce costs for importers andexporters. Such procedures:(a) shall allow for the release of goods within a period no greater than that required toensure compliance with its Canadian domestic law and EU or EU Member States'legislation.(b) may require the submission of more extensive information through post-entryaccounting and verifications, as appropriate;(c) shall allow goods, and to the greatest extent possible controlled or regulated goods, to be released at the first point of arrival ;(d) shall endeavour to allow for the expeditious release of goods in need of emergencyclearance;

(e)

shall allow an importer or its agent to remove goods from custom’s control prior tothe final determination and payment of customs duties, taxes, and fees. Beforereleasing the goods, a Party may require that an importer provide sufficient guaranteein the form of a surety, a deposit, or some other appropriate instrument;(f) provide for, in accordance with Canadian domestic law and EU or EU Member Stateslegislation simplified documentation requirements for the entry of low-value goods asdetermined by that Party2. Each Party shall allow for the expedited release of goods and, to the extent possible or whereapplicable, shall:(a) provide for advance electronic submission and processing of information before physical arrival of goods to enable their release upon arrival, where no risk has beenidentified or where no random checks are to be performed and(b) provide for clearance of certain goods with a minimum of documentation.3. Each Party shall, to the extent possible, ensure that its authorities and agencies involved in border and other import and export controls cooperate and coordinate to facilitate trade by, inter alia, converging import and export data and documentation requirements, and establishing asingle location for one-time documentary and physical verification of consignments.4. Each Party shall ensure, to the greatest extent possible, that the requirements of its agenciesrelated to the import and export of goods are coordinated to facilitate trade, regardless of whether these requirements are administered by an agency or on behalf of that agency by the customsadministration.


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Article X-4: Customs Valuation

1. The Agreement on the Implementation of Article VII of the GATT (1994) shall governcustoms valuation applied to reciprocal trade between the parties.2. The parties shall cooperate with a view to reaching a common approach to issues relating tocustoms valuation.

Article X-5: Classification of Goods

The classification of goods in trade between the Parties shall be that set out in each Party'srespective tariff nomenclature in conformity with the International Convention on theHarmonized Commodity Description and Coding System.

Article X-6: Fees and Charges

Each Party shall publish or otherwise make available information on fees and charges imposed by a customs administration, including through electronic means. This information shall includethe applicable fees and charges, the specific reason for the fee or charge, the responsibleauthority and when and how payment is to be made. A Party shall not impose new or amendedfees and charges until it publishes or otherwise makes available this information.

Article X-7: Risk Management

1. Each Party shall base its examination and release procedures and its post-entry verification procedures on risk assessment principles, rather than examining each shipment offered for entry in a comprehensive manner for compliance with all import requirements.2. The Parties agree to adopt and apply their import, export and transit requirements and procedures for goods on the basis of risk management principles, to be applied to focuscompliance measures on transactions that merit attention.3. The above shall not preclude a Party from conducting quality control and compliancereviews, which may require more extensive examinations.

Article X-8: Automation

1. Each Party shall use information technologies that expedite domestic procedures for therelease of goods in order to facilitate trade including trade between the Parties.2. Each Party shall:(a) endeavour to make available by electronic means customs forms that are requiredfor the import or export of goods;


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(b) allow, subject to Canadian domestic law or EU or EU Member States' legislation, thosecustoms forms to be submitted in electronic format; and(c) where possible, through its customs administration, establish a means of providingfor the electronic exchange of information with its trading community.3. Each Party shall endeavour to:(a) develop or maintain fully interconnected single window systems to facilitate a single,electronic submission of all information required by customs and non-customs legislationfor cross-border movements of goods; and(b) develop a set of data elements and processes in accordance with the WCO Data Modeland related WCO recommendations and guidelines.4. The Parties shall endeavour to cooperate on the development of interoperable electronicsystems, including taking account of the work at the WCO, in order to facilitate trade between the Parties.

Article X-9: Advance Rulings

1. Each Party shall issue upon written request advance rulings on tariff classification inaccordance with its legislation.2. Each party shall publish, (e.g. on the Internet), subject to any confidentiality requirements,information on advance rulings on tariff classification that is relevant for a proper understandingand application of tariff classification rules3. To facilitate trade, the Parties shall include in their bilateral dialogue regular updates onchanges in their respective legislation and its implementation on the matters referred to in paragraphs 1 and 2.

Article X-10: Review and Appeal

1. Each Party shall ensure that any administrative action or official decision taken in respect of the import of goods is reviewable promptly by judicial, arbitral or administrative tribunals or through administrative procedures.2. Such tribunal or official acting pursuant to such administrative procedures shall beindependent of the official or office issuing the decision and shall have the competence tomaintain, modify or reverse the determination, in accordance with the Party’s domestic law.3. Each Party shall provide for an administrative level of appeal or review, independent of theofficial or, where applicable, the office responsible for the original action or decision, beforerequiring a person to seek redress at a more formal or judicial level.


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3. The Parties agree to cooperate in accordance with the 1998 Agreement between Canada andthe European Community on Customs Cooperation and Mutual Assistance in CustomsMatters, including future amendments thereto.4. The Parties shall provide each other with mutual assistance in customs matters, including asuspected breach of customs legislation relating to the implementation of the provisions of this Agreement, in accordance with the 1998 Agreement between Canada and the EuropeanCommunity on Customs Cooperation and Mutual Assistance in Customs Matters, includingfuture amendments thereto.

ARTICLE X-14: Joint Customs Cooperation Committee

1. The Joint Customs Cooperation Committee (JCCC), granted authority to act under theauspices of the CETA Joint Committee as a specialised committee pursuant to Article [X.02]'Specialised Committees' in Chapter [Administrative and Institutional Provisions], shallensure the proper functioning of Chapter [Customs and Trade Facilitation] and the Protocolon Rules of Origin and Origin Procedures, as well as Article [X.24] 'Border Measures' of theChapter [Intellectual Property] and Article 9 [Temporary Suspension of Preferential Tariff Treatment] of the Chapter [National Treatment and Market Access for Goods]. The JCCCshall examine all issues arising from their application in accordance with the objectives of this Agreement.2. For matters covered by this Agreement, the JCCC shall consist of representatives of thecustoms, trade, and/ or* other competent authorities as each Party deems appropriate.3. The Parties shall ensure that the composition of their representatives in JCCC meetingscorresponds to the agenda items. The JCCC may meet in a specific configuration of expertiseto deal with rules of origin or origin procedures matters ('JCCC-Rules of Origin' or ‘JCCC-Origin Procedures’).4. The JCCC may formulate resolutions, recommendations or opinions and present draftdecisions to the CETA Joint Committee which it considers necessary for the attainment of the common objectives and sound functioning of the mechanisms established in Chapter [Customs and Trade Facilitation] and the Protocol on Rules of Origin and Origin Procedures,as well as Article [X.24] 'Border Measures' of the Chapter [Intellectual Property] and Article9 [Temporary Suspension of Preferential Tariff Treatment] of the Chapter [Nationaltreatment and Market Access for Goods].* [

Note to legal scrub: “and/or” captures the intent of the two sides in agreeing to this provision. It would be replaced by “or”, or any other expression which the legal revisers of thetwo sides agree conveys the same meaning].


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9. SUBSIDIESFREE TRADE AGREEMENT WITH CANADAChapter on SubsidiesArticle x1Definition of a subsidy

1. For the purposes of this Agreement, a subsidy is a measure related to trade in goods whichfulfils the conditions set out in Article 1.1 of the

WTO Agreement on Subsidies and Countervailing Measures

(SCM Agreement).2. A subsidy shall be subject to this chapter only if it is specific within the meaning of Article2 of the SCM Agreement.

Article x2Transparency

1. Every two years, each Party shall notify the other Party of the following with respect to anysubsidy granted or maintained within its territory:the legal basis of the subsidy;the form of the subsidy; andthe amount of the subsidy or the amount budgeted for the subsidy. Notifications provided to the World Trade Organization under Article 25.1 of the SCMAgreement shall be deemed to have met this requirement.2. At the request of the other Party, a Party shall promptly provide information and respond toquestions pertaining to particular instances of government support related to trade inservices provided within its territory.

Article x3Consultations on subsidies and government support in sectors other than agriculture andfisheries

1. If a Party considers that a subsidy, or a particular instance of government support related totrade in services, granted by the other Party is adversely affecting, or may adversely affectits interests, it may express its concern to the other Party and request informal consultations


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on the matter. The responding Party shall accord full and sympathetic consideration to thatrequest.2. During informal consultations, a Party may seek additional information on a subsidy or particular instance of government support related to trade in services provided by the other Party, including its policy objective, its amount, and any measures taken to limit the potential distortive effect on trade.3. On the basis of the informal consultations, the responding Party shall endeavour toeliminate or minimise any adverse effects of the subsidy, or the particular instance of government support related to trade in services, on the requesting Party's interests.4. This article shall not apply to subsidies related to agricultural goods and fisheries products,and is without prejudice to Articles x4 and x5.

Article x4Consultations on subsidies related to agricultural goods and fisheries products

1. The Parties share the objective of working jointly to reach an agreement:(a) to further enhance multilateral disciplines and rules on agricultural trade in the WTO;and,(b) to help develop a global, multilateral resolution to fisheries subsidies.2. If a Party considers that a subsidy, or the provision of government support, granted by theother Party, is adversely affecting, or may adversely affect, its interests with respect toagricultural goods or fisheries products, it may express its concerns to the other Party andrequest consultations on the matter.3. The requested Party shall accord full and sympathetic consideration to that request and willuse its best endeavours to eliminate or minimize the adverse effects of the subsidy, or the provision of government support, on the requesting Party's interests with regard toagricultural goods and fisheries products.

Article x5Agriculture Export Subsidies

1. For the purposes of this Article, "export subsidy" means an export subsidy as defined inArticle 1(e) of the WTO Agreement on Agriculture,2. A Party shall not adopt or maintain an export subsidy on an agricultural good that isexported, or incorporated in a product that is exported, to the territory of the other Partyafter the other Party has fully eliminated the tariff, immediately or after the transitional


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period, on that agricultural good in accordance with its [Tariff Elimination Schedule].“Fully eliminated tariff” means, where tariff quotas exist, the elimination of either the in-or the over-quota tariff.

Article x6Confidentiality

When providing information under this chapter, a Party is not required to discloseconfidential information.

Article x7Excluded Subsidies and Government Support – Culture

Nothing in this Agreement applies to subsidies or government support with respect toaudio-visual services for the EU and to cultural industries for Canada

Article x8Relationship with the WTO

Each Party retains its rights and obligations under Article VI of GATT 1994, the SCMAgreement and the WTO Agreement on Agriculture.

Article x9Dispute settlement

Articles x3 and x4 of this chapter shall not be subject to the dispute settlement provisionsof this Agreement.


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10. INVESTMENTSection 1: Scope and DefinitionsArticle X.1: Scope of Application

1. This Chapter shall apply to measures adopted or maintained by a Party in its territory

15

relating to:(a) investors of the other Party;(b) covered investments; and(c) with respect to Articles X.5 (Performance Requirements), all investments in theterritory of the Party.2. The Section on Establishment of Investments, and the Section on Non-DiscriminatoryTreatment with regard to the establishment or acquisition of a covered investment, do not applyto measures relating to:(b) air services, related services in support of air services and other services supplied bymeans of air transport

16

, other than:(i) Aircraft repair and maintenance services;(ii) The selling and marketing of air transport services;(iii) Computer reservation system (CRS) services;(iv) Ground handling services;

15

For greater certainty, the obligations of this chapter apply to the Exclusive Economic Zones and ContinentalShelves, as provided in the United Nations Convention on the Law of the Sea of 10 December 1982,:(a) of Canada as referred to in Article X.02 (Country-specific definitions – Geographical scope of Application (a));and(b) in which the Treaty on the European Union and the Treaty on the Functioning of the European Union Treaty areapplied as referred to in Article X.02 (Country-specific definitions – Geographical scope of Application (b)).

16

These services include services where an aircraft is being used to carry out specialised activities in sectorsincluding agriculture, construction, photography, surveying, mapping, forestry, observation and patrol, andadvertising, where this specialised activity is provided by the person that is responsible for the operation of theaircraft.


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aircraft repair and maintenance service

means such activities when undertaken on an aircraftor a part thereof while it is withdrawn from service and do not include so-called linemaintenance.

airport operation services

means the operation and/or management, on a fee or contract basis,of airport infrastructure, including terminals, runways, taxiways and aprons, parking facilities,and intra-airport transportation systems.For greater certainty, airport operation services do not include the ownership of, or investmentin, airports or airport lands, or any of the functions carried out by a board of directors.Airport operation services do not include air navigation services.

attachment

means the seizure of the property of a disputing party to secure or ensure thesatisfaction of an award.

computer reservation system service

means services supplied by computerised systems thatcontain information about air carriers' schedules, availability, fares and fare rules, through whichreservations can be made or tickets may be issued.

confidential or protected information

means:(a) confidential business information; or (b) information which is protected against being made available to the public, in the case of the information of the respondent, under the law of the respondent and in the case of other information, under any law or rules determined to be applicable to the disclosure of such information by the tribunal.

covered investment

means, with respect to a Party, an investment:(a) in its territory;(b) made in accordance with the applicable law at that time;(c) directly or indirectly owned or controlled by an investor of the other Party; and(d) existing on the date of entry into force of this Agreement, as well as investments made or acquired thereafter.

disputing party

means either the investor that initiates proceedings pursuant to Section 6 or therespondent. For the purpose of Section 6 and without prejudice to Article x-13 (Subrogation), aninvestor does not include a Party.

disputing parties

means both the investor and the respondent.

enjoin

means an order to prohibit or restrain an action.

enterprise

means any entity duly constituted or otherwise organized under applicable law,whether for profit or otherwise, and whether privately-owned or controlled or governmentally-owned or controlled, including any corporation, trust, partnership, joint venture, sole proprietorship or association and a branch or representative office of any such entity.

ground handling services

means the provision, on a fee or contract basis, of the following


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services: ground administration and supervision, including load control and communications; passenger handling; baggage handling; cargo and mail handling; ramp handling and aircraftservices; fuel and oil handling; aircraft line maintenance, flight operations and crewadministration; surface transport; and catering services. Ground handling services do not includesecurity services and the operation or management of centralised airport infrastructures, such as baggage handling systems, de-icing facilities, fuel distribution systems, and intra-airporttransport systems.

ICSID

means the International Centre for Settlement of Investment Disputes established by theICSID Convention.

ICSID Additional Facility Rules

means the

Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Centre for Settlement of Investment Disputes.

ICSID Convention

means the

Convention on the Settlement of Investment Disputes betweenStates and Nationals of Other States,

done at Washington, 18 March 1965.

[

Notetoscrub

: Negotiators understand that this reference captures amendments to theConvention][

Notetoscrub

: Parties to check consistency to references to other international agreements]

intellectual property rights

means copyright and related rights, trademark rights, rights ingeographical indications, rights in industrial designs, patent rights, rights in layout designs of integrated circuits, rights in relation to protection of undisclosed information, and plant breeders’rights; and, where such rights are provided by domestic law, utility model rights. The JointCommittee may, by decision, add other categories of intellectual property to this definition.

'investment'

means

:

Every kind of asset that an investor owns or controls, directly or indirectly, that has thecharacteristics of an investment, which includes a certain duration and other characteristics suchas the commitment of capital or other resources, the expectation of gain or profit, or theassumption of risk. Forms that an investment may take include:(a) an enterprise;(b) shares, stocks and other forms of equity participation in an enterprise;(c) bonds, debentures and other debt instruments of an enterprise;(d) a loan to an enterprise;(e) any other kinds of interest in an enterprise;


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Section 2: Establishment of InvestmentsArticle X.4: Market Access

1. Neither Party shall adopt or maintain with regard to market access through establishment by an investor of a Party, either on the basis of its entire territory or on the basis of the territoryof a national, provincial, territorial, regional or local level of government, measures that:(a) impose limitations on:(i) the number of enterprises that may carry out a specific economic activity whether inthe form of numerical quotas, monopolies, exclusive suppliers or the requirement of aneconomic needs test;(ii) the total value of transactions or assets in the form of numerical quotas or therequirement of an economic needs test;(iii) the total number of operations or the total quantity of output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needstest;

17

(iv) the participation of foreign capital in terms of maximum percentage limit on foreignshareholding or the total value of individual or aggregate foreign investment;(v) the total number of natural persons that may be employed in a particular sector or thatan enterprise may employ and who are necessary for, and directly related to, the performance of economic activity in the form of numerical quotas or the requirement of an economic needs test.(b) restrict or require specific types of legal entity or joint venture through which an enterprisemay carry out an economic activity.2. For greater certainty, the following are consistent with paragraph 1 of this article;(a) Measures concerning zoning and planning regulations affecting the development or useof land, or other analogous measures.(b) Measures requiring the separation of the ownership of infrastructure from the ownershipof the goods or services provided through that infrastructure to ensure fair competition,for example in the fields of energy, transportation and telecommunications.(c) Measures restricting the concentration of ownership to ensure fair competition.

17Subparagraphs 1(a) (i), (ii) and (iii) do not cover measures taken in order to limit the production of an agricultural product.


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(d) Measures seeking to ensure the conservation and protection of natural resources and theenvironment, including limitations on the availability, number and scope of concessionsgranted, and the imposition of moratoria or bans.(e) Measures limiting the number of authorizations granted because of technical or physicalconstraints, for example telecommunications spectrum and frequencies.(f) Measures requiring that a certain percentage of the shareholders, owners, partners, or directors of an enterprise be qualified or practice a certain profession such as lawyers or accountants.

Article X.5: Performance Requirements

1. Neither Party may impose, or enforce any of the following requirements, or enforce anycommitment or undertaking, in connection with the establishment, acquisition, expansion,management, conduct or operation of all investments in its territory to:(a) export a given level or percentage of goods or services;(b) achieve a given level or percentage of domestic content;(c) purchase, use or accord a preference to goods produced or services provided in itsterritory, or to purchase goods or services from natural persons or enterprises inits territory;(d) relate in any way the volume or value of imports to the volume or value of exportsor to the amount of foreign exchange inflows associated with such investment;(e) restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings;(f) transfer technology, a production process or other proprietary knowledge to anatural person or enterprises in its territory; or (g) supply exclusively from the territory of the Party a good produced or a service provided by the investment to a specific regional or world market.2. Neither Party may condition the receipt or continued receipt of an advantage, inconnection with the establishment, acquisition, expansion, management, conduct or operation of all investments in its territory, on compliance with any of the following requirements:(a) to achieve a given level or percentage of domestic content;


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Section 4: Investment ProtectionArticle X.9: Treatment of Investors and of Covered Investments

1. Each Party shall accord in its territory to covered investments of the other Party and toinvestors with respect to their covered investments fair and equitable treatment and full protection and security in accordance with paragraphs 2 to 6.2. A Party breaches the obligation of fair and equitable treatment referenced in paragraph 1where a measure or series of measures constitutes:(a) Denial of justice in criminal, civil or administrative proceedings;(b) Fundamental breach of due process, including a fundamental breach of transparency,in judicial and administrative proceedings.(c) Manifest arbitrariness;(d) Targeted discrimination on manifestly wrongful grounds, such as gender, race or religious belief;(e) Abusive treatment of investors, such as coercion, duress and harassment; or (f) A breach of any further elements of the fair and equitable treatment obligationadopted by the Parties in accordance with paragraph 3 of this Article.3. The Parties shall regularly, or upon request of a Party, review the content of theobligation to provide fair and equitable treatment. The Committee on Services and Investmentmay develop recommendations in this regard and submit them to the Trade Committee for decision.4. When applying the above fair and equitable treatment obligation, a tribunal may take intoaccount whether a Party made a specific representation to an investor to induce a coveredinvestment, that created a legitimate expectation, and upon which the investor relied in decidingto make or maintain the covered investment, but that the Party subsequently frustrated.5. For greater certainty, ‘full protection and security’ refers to the Party’s obligationsrelating to physical security of investors and covered investments.6. For greater certainty, a breach of another provision of this Agreement, or of a separateinternational Agreement, does not establish that there has been a breach of this Article.

Article X.10: Compensation for Losses

Notwithstanding paragraph 5(b) of Article X.14 (Reservations and Exceptions), each Party shallaccord to investors of the other Party, whose covered investments suffer losses owing to armedconflict, civil strife, a state of emergency or natural disaster in its territory, treatment no lessfavourable than that it accords to its own investors or to the investors of any third country,whichever is more favourable to the investor concerned, as regards restitution, indemnification,compensation or other settlement.


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Article X.11: Expropriation

1. Neither Party may nationalize or expropriate a covered investment either directly, or indirectly through measures having an effect equivalent to nationalization or expropriation(hereinafter referred to as “expropriation”), except:(a) for a public purpose;(b) under due process of law;(c) in a non-discriminatory manner; and(d) against payment of prompt, adequate and effective compensation.For greater certainty, this paragraph shall be interpreted in accordance with Annex X.11 on theclarification of expropriation.2. Such compensation shall amount to the fair market value of the investment at the timeimmediately before the expropriation or the impending expropriation became known, whichever is earlier. Valuation criteria shall include going concern value, asset value including the declaredtax value of tangible property, and other criteria, as appropriate, to determine fair market value.3. The compensation shall also include interest at a normal commercial rate from the date of expropriation until the date of payment and shall, in order to be effective for the investor, be paidand made transferable, without delay, to the country designated by the investor and in thecurrency of the country of which the investor is a national or in any freely convertible currencyaccepted by the investor.4. The investor affected shall have a right, under the law of the expropriating Party, to prompt review of its claim and of the valuation of its investment, by a judicial or other independent authority of that Party, in accordance with the principles set out in this Article.5. This Article does not apply to the issuance of compulsory licenses granted in relation tointellectual property rights, to the extent that such issuance is consistent with the Agreement onTrade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreements('TRIPS Agreement').6. For greater certainty, the revocation, limitation or creation of intellectual property rightsto the extent that these measures are consistent with TRIPS and Chapter X (Intellectual Property)of this Agreement, do not constitute expropriation. Moreover, a determination that these actionsare inconsistent with the TRIPS Agreement or Chapter X (Intellectual Property) of thisAgreement does not establish that there has been an expropriation.


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Article X.12: Transfers

1. Each Party shall permit all transfers relating to a covered investment to be made withoutrestriction or delay and in a freely convertible currency. Such transfers include:(a) contributions to capital, such as principal and additional funds to maintain, develop or increase the investment;(b) profits, dividends, interest, capital gains, royalty payments, management fees, technicalassistance and other fees, or other forms of returns or amounts derived from the coveredinvestment;(c) proceeds from the sale or liquidation of the whole or any part of the covered investment;(d) payments made under a contract entered into by the investor or the covered investment,including payments made pursuant to a loan agreement;(e) payments made pursuant to Articles X.10 (Compensation for Losses) and X.11(Expropriation);(f) earnings and other remuneration of foreign personnel and working in connection with aninvestment;(g) payments of damages pursuant to an award issued by a tribunal under Section 6 (Investor toState Dispute Settlement).2. Transfers shall be made at the market rate of exchange applicable on the date of transfer.3. Neither Party may require its investors to transfer, or penalize its investors for failing totransfer, the income, earnings, profits or other amounts derived from, or attributable to,investments in the territory of the other Party.4. Notwithstanding paragraphs 1, 2 or 3, nothing in this article shall be construed to preventa Party from applying in an equitable and non-discriminatory manner and not in a way thatwould constitute a disguised restriction on transfers, its laws relating to:(a) bankruptcy, insolvency or the protection of the rights of creditors;(b) issuing, trading or dealing in securities;(c) criminal or penal offences;(d) financial reporting or record keeping of transfers when necessary to assist lawenforcement or financial regulatory authorities;


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Section 5: Reservations and ExceptionsArticle X.14: Reservations and Exceptions

1. Articles X.4 (Market Access), X.5 (Performance Requirements), X.6 (NationalTreatment), X.7 (Most-Favoured-Nation Treatment), and X.8 (Senior Management and Boardsof Directors) do not apply to:(a) an existing non-conforming measure that is maintained by a Party at the level of:(i) the European Union

,

as set out in its Schedule to Annex I;(ii) a national government, as set out by that Party in its Schedule to Annex I;(iii) a provincial, territorial, or regional government, as set out by that Party in itsSchedule to Annex I; or (iv) a local government.(b) the continuation or prompt renewal of any non-conforming measure referred to insubparagraph (a); or (c) an amendment to any non-conforming measure referred to in subparagraph (a) to theextent that the amendment does not decrease the conformity of the measure, as itexisted immediately before the amendment, with X.4 (Market Access), X.5(Performance Requirements), Articles X.6 (National Treatment), X.7 (Most-Favoured- Nation Treatment), , and X.8 (Senior Management and Boards of Directors) .2. Articles X.4 (Market Access), X.5 (Performance Requirements), X.6 (NationalTreatment), X.7 (Most-Favoured-Nation Treatment), and X.8 (Senior Management and Boardsof Directors) do not apply to measures that a Party adopts or maintains with respect to sectors,subsectors or activities, as set out in its Schedule to Annex II.3. Without prejudice to Article X.9 (Treatment of Investors and Covered Investments) andArticle X.11 (Expropriation), no Party may adopt any measure or series of measures after thedate of entry into force of this Agreement and covered by its schedule to Annex II, that require,directly or indirectly, an investor of the other Party, by reason of nationality, to sell or otherwisedispose of an investment existing at the time the measure or series of measures becomeseffective.4. In respect of intellectual property rights, a Party may derogate from Article X.6 (NationalTreatment), Article X.7 (Most-Favoured-Nation Treatment) and subparagraph 1(f) of Article X.8(Performance Requirements) where permitted by the TRIPS Agreement, including anyamendments to the TRIPS Agreement in force for both Parties, and waivers to the TRIPSAgreement adopted pursuant to Article IX of the WTO Agreement.5. Article X.4 (Market Access), Articles X.6 (National Treatment), X.7 (Most-Favoured- Nation Treatment) and X.8 (Senior Management and Board of Directors) do not apply to:


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Section 6: Investor-State Dispute SettlementArticle X.17: Scope of a Claim to Arbitration

1. Without prejudice to the rights and obligations of the Parties under Chapter [XY](DisputeSettlement), an investor of a Party may submit to arbitration under this Section a claim thatthe respondent has breached an obligation under:(a) Section 3 (Non-Discriminatory Treatment) of this Chapter, with respect to theexpansion, conduct, operation, management, maintenance, use, enjoyment and sale or disposal of its covered investment; or (b) Section 4 (Investment Protection) of this Chapter; andwhere the investor claims to have suffered loss or damage as a result of the alleged breach.2. Claims under subparagraph 1(a) with respect to the expansion of a covered investment may be submitted only to the extent the measure relates to the existing business operations of acovered investment and the investor has, as a result, incurred loss or damage with respect tothe covered investment.3. For greater certainty, an investor may not submit a claim to arbitration under this Sectionwhere the investment has been made through fraudulent misrepresentation, concealment,corruption, or conduct amounting to an abuse of process.4. A tribunal constituted under this Section may not decide claims that fall outside of the scopeof this Article.

Article X.18: Consultations

1. Any dispute should as far as possible be settled amicably. Such a settlement may be agreed atany time, including after the arbitration has been commenced. Unless the disputing partiesagree to a longer period, consultations shall be held within 60 days of the submission of therequest for consultations pursuant to paragraph 3.2. Unless the disputing parties agree otherwise, the place of consultation shall be:(a) Ottawa, where the measures challenged are measures of Canada;(b) Brussels, where the measures challenged include a measure of the European Union;or (c) the capital of the Member State of the European Union, where the measureschallenged are exclusively measures of that Member State.3. The investor shall submit to the other Party a request for consultations containing:(a) the following information:


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(i) the name and address of the investor and, where such request is submitted on behalf of a locally established enterprise, the name, address and place of incorporation of the locally established enterprise;(ii) where there is more than one investor, the name and address of each investor and, where there is more than one locally established enterprise, the name,address and place of incorporation of each locally established enterprise;(iii)the provisions of this Agreement alleged to have been breached;(iv)the legal and the factual basis for the claim, including the measures at issue;and(v) the relief sought and the estimated amount of damages claimed; and(b) evidence establishing that the investor is an investor of the other Party and that itowns or controls the investment, including the locally established enterprise whereapplicable, in respect of which it has submitted a request.4. The requirements of the request for consultations set out in paragraph 3 shall be met in amanner that does not materially affect the ability of the respondent to effectively engage inconsultations or to prepare its defence.5. A request for consultations must be submitted within:(a) 3 years after the date on which the investor or, as applicable, the locally establishedenterprise, first acquired, or should have first acquired, knowledge of the alleged breach and knowledge that the investor or, as applicable, the locally establishedenterprise, has incurred loss or damage thereby; or (b) two years after the investor or, as applicable, the locally established enterprise,exhausts or ceases to pursue claims or proceedings before a tribunal or court under the law of a Party and, in any event, no later than 10 years after the date on which theinvestor or, as applicable, the locally established enterprise, first acquired, or shouldhave first acquired knowledge of the alleged breach and knowledge that the investor has incurred loss or damage thereby6. In the event that the request for consultations concerns an alleged breach by the EuropeanUnion, or a Member State of the European Union, it shall be sent to the European Union.7. In the event that the investor has not submitted a claim to arbitration pursuant to Article X.22(Submission of a claim to arbitration) within 18 months of submitting the request for consultations, the investor shall be deemed to have withdrawn its request for consultationsand any notice requesting a determination of the respondent and may not submit a claimunder this Section. This period may be extended by agreement between the disputing parties.


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Article X.19: Mediation

1. The disputing parties may at any time agree to have recourse to mediation.2. Recourse to mediation is without prejudice to the legal position or rights of either disputing party under this Chapter and shall be governed by the rules agreed to by the disputing partiesincluding, if available, the rules established by the Services and Investment Committee pursuant to Article X.42(3)(c).3. The mediator is appointed by agreement of the disputing parties. Such appointment mayinclude appointing a mediator from the roster established pursuant to Article X.25(Constitution of the Tribunal) or requesting the Secretary-General of ICSID to appoint amediator from the list of chairpersons established pursuant to Article X.25 (Constitution of the Tribunal).4. Disputing parties shall endeavour to reach a resolution to the dispute within 60 days from theappointment of the mediator.5. If the disputing parties agree to have recourse to mediation, Articles X.18(5) and X.18(7)(Consultations) shall not apply from the date on which the disputing parties agreed to haverecourse to mediation to the date on which either disputing party decides to terminate themediation, by way of a letter to the mediator and the other disputing party.

Article X.20: Determination of the respondent for disputes withthe European Union or its Member States

1. If the dispute cannot be settled within 90 days of the submission of the request for consultations, the request concerns an alleged breach of the Agreement by the EuropeanUnion or a Member State of the European Union and the investor intends to initiatearbitration proceedings pursuant to Article X.22 (Submission of a claim to arbitration), theinvestor shall deliver to the European Union a notice requesting a determination of therespondent.2. The notice shall identify the measures in respect of which the investor intends to initiatearbitration proceedings.3. The European Union shall, after having made a determination, inform the investor as towhether the European Union or a Member State of the European Union shall be therespondent.4. If the investor has not been informed of the determination within 50 days of the noticereferred to in paragraph 1:


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(a) where the measures identified in the notice are exclusively measures of a Member State of the European Union, the Member State shall be respondent.(b) where the measures identified in the notice include measures of the European Union,the European Union shall be respondent.5. The investor may submit a claim to arbitration on the basis of the determination made pursuant to paragraph 3, and, if no such determination has been communicated, on the basisof the application of paragraph 4.6. Where either the European Union or the Member State is the respondent, pursuant to paragraph 3 or 4, neither the European Union, nor the Member State may assert theinadmissibility of the claim, lack of jurisdiction of the tribunal or otherwise object to theclaim or award on the ground that the respondent was not properly determined pursuant to paragraph 3 or identified on the basis of the application of paragraph 4.7. The tribunal shall be bound by the determination made pursuant to paragraph 3 and, if nosuch determination has been communicated, the application of paragraph 4.

Article X.21: Procedural and Other Requirements for theSubmission of a Claim to Arbitration

1. An investor may submit a claim to arbitration under Article X.22 (Submission of a Claim toArbitration) only if the investor:(a) delivers to the respondent, with the submission of a claim to arbitration, its consent toarbitration in accordance with the procedures set out in this Chapter;(b) allows at least 180 days to elapse from the submission of the request for consultationsand, where applicable, at least 90 days to elapse from the submission of the noticerequesting a determination of the respondent;(c) fulfils the requirements of the notice requesting a determination of the respondent;(d) fulfils the requirements related to the request for consultations;(e) does not identify measures in its claim to arbitration that were not identified in itsrequest for consultations;(f) where it has initiated a claim or proceeding seeking compensation or damages beforea tribunal or court under domestic or international law with respect to any measurealleged to constitute a breach referred to in its claim to arbitration, provides adeclaration that:(i) a final award, judgment or decision has been made; or (ii) it has withdrawn any such claim or proceeding;


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The declaration shall contain, as applicable, proof that a final award, judgment or decision has been made or proof of the withdrawal of any such claim or proceeding;and(g) waives its right to initiate any claim or proceeding seeking compensation or damages before a tribunal or court under domestic or international law with respect to anymeasure alleged to constitute a breach referred to in its claim to arbitration.2. Where the submission of a claim to arbitration is for loss or damage to a locally establishedenterprise or to an interest in a locally established enterprise that the investor owns or controls directly or indirectly, both the investor and the locally established enterprise shall provide a declaration pursuant to subparagraph 1(f) and a waiver pursuant to subparagraph1(g).3. The requirements of subparagraphs 1(f), (g) and paragraph 2 do not apply in respect of alocally established enterprise where the respondent or the investor’s host State has deprivedan investor of control of the locally established enterprise, or has otherwise prevented thelocally established enterprise from fulfilling such requirements.4. Upon request of the respondent, the Tribunal shall decline jurisdiction where the investor or,as applicable, the locally established enterprise fails to fulfil any of the requirements of paragraphs 1 and 2.5. The waiver provided pursuant to subparagraph 1(g) or paragraph 2 as applicable shall ceaseto apply:(a) where the Tribunal rejects the claim on the basis of a failure to meet the requirementsof paragraphs 1 or 2 or on any other procedural or jurisdictional grounds;(b) where the Tribunal dismisses the claim pursuant to Article X.29 (Claim manifestlywithout legal merit) or Article X.30 (Claims Unfounded as a Matter of Law); or (c) where the investor withdraws its claim, in conformity with applicable arbitrationrules, within 12 months of the constitution of the tribunal.

Article X.22: Submission of a Claim to Arbitration

1. If a dispute has not been resolved through consultations, a claim may be submitted toarbitration under this Section by:(a) an investor of the other Party on its own behalf; or (b) an investor of the other Party, on behalf of a locally established enterprise which itowns or controls directly or indirectly.


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2. A claim may be submitted under the following arbitration rules:(a) the ICSID Convention;(b) the ICSID Additional Facility Rules where the conditions for proceedings pursuant to paragraph (a) do not apply;(c) the UNCITRAL Arbitration Rules; or (d) any other arbitration rules on agreement of the disputing parties.3. In the event that the investor proposes arbitration rules pursuant to sub-paragraph 2(d), therespondent shall reply to the investor’s proposal within 20 days of receipt. If the disputing parties have not agreed on such arbitration rules within 30 days of receipt, the investor maysubmit a claim under the arbitration rules provided for in subparagraphs 2(a), (b) or (c).4. For greater certainty, a claim submitted under subparagraph 1(b) shall satisfy therequirements of Article 25(1) of the ICSID Convention.5. The investor may, when submitting its claim, propose that a sole arbitrator should hear theclaim. The respondent shall give sympathetic consideration to such a request, in particular where the investor is a small or medium-sized enterprise or the compensation or damagesclaimed are relatively low.6. The arbitration is governed by the arbitration rules applicable under paragraph 2 that are ineffect on the date that the claim or claims are submitted to arbitration under this Section,subject to the specific rules set out in this Section and supplemented by rules adopted pursuant to Article X.42(3)(b) (Committee).7. A claim is submitted to arbitration under this Section when:(a) the request for arbitration under Article 36(1) of the ICSID Convention is received bythe Secretary-General of ICSID;(b) the request for arbitration under Article 2 of Schedule C of the ICSID AdditionalFacility Rules is received by the Secretariat of ICSID;(c) the notice of arbitration under Article 3 of the UNCITRAL Arbitration Rules isreceived by the respondent; or (d) the request or notice of arbitration pursuant to other arbitration rules is received bythe respondent in accordance with subparagraph 2(d).8. Each Party shall notify the other Party of the place of delivery of notices and other documents by the investors relating to this Section. Each Party shall ensure this informationis made publicly available.


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[

NotetoScrub

: please ensure that “relating to this Section” covers also ISDS on Financial Services]

Article X.23: Proceedings under different international agreements

Where claims related to the same measure are brought both pursuant to this Section and another international agreement and:(a) there is a potential for overlapping compensation; or (b) the other international claim could have a significant impact on the resolution of theclaim brought pursuant to this Section,a Tribunal constituted under this Section shall, as soon as possible after hearing the disputing parties, stay its proceedings or otherwise ensure that proceedings pursuant to another international agreement are taken into account in its decision, order or award.

Article X.24: Consent to Arbitration

1. The respondent consents to the submission of a claim to arbitration under this Section inaccordance with the procedures set out under this Agreement.2. The consent under paragraph 1 and the submission of a claim to arbitration under thisChapter shall satisfy the requirements of:(a) Article 25 of the ICSID Convention and Chapter II (Institution of Proceedings) of theICSID Additional Facility Rules for written consent of the disputing parties; and,(b) Article II of the New York Convention for an agreement in writing.

Article X.25: Constitution of the Tribunal

1. Unless the disputing parties have agreed to appoint a sole arbitrator, the Tribunal shallcomprise three arbitrators. One arbitrator shall be appointed by each of the disputing partiesand the third, who will be the presiding arbitrator, shall be appointed by agreement of thedisputing parties. If the disputing parties agree to appoint a sole arbitrator, the disputing parties shall seek to agree on the sole arbitrator.2. If a Tribunal has not been constituted within 90 days from the date that a claim is submittedto arbitration, or where the disputing parties have agreed to appoint a sole arbitrator and havefailed to do so within 90 days from the date the respondent agreed to submit the dispute to asole arbitrator, the Secretary-General of ICSID shall appoint the arbitrator or arbitrators notyet appointed in accordance with paragraph 3.3. The Secretary-General of ICSID shall, upon request of a disputing party, appoint theremaining arbitrators from the list established pursuant to paragraph 4. In the event that suchlist has not been established on the date a claim is submitted to arbitration, the Secretary-General of ICSID shall make the appointment at his or her discretion taking into


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consideration nominations made by either Party and, to the extent practicable, in consultationwith the disputing parties. The Secretary-General of ICSID may not appoint as presidingarbitrator a national of either Canada or a Member State of the European Union unless alldisputing parties agree otherwise.4. Pursuant to Article X.42(2)(a), the Committee on Services and Investment shall establish,and thereafter maintain, a list of individuals who are willing and able to serve as arbitratorsand who meet the qualifications set out in paragraph 5. It shall ensure that the list includes atleast 15 individuals but may agree to increase the number of individuals. The list shall becomposed of three sub-lists each comprising at least five individuals: one sub-list for eachParty, and one sub-list of individuals who are neither nationals of Canada nor the Member States of the European Union to act as presiding arbitrators.5. Arbitrators appointed pursuant to this Section shall have expertise or experience in publicinternational law, in particular international investment law. It is desirable that they haveexpertise or experience in international trade law and the resolution of disputes arising under international investment or international trade agreements.6. Arbitrators shall be independent of, and not be affiliated with or take instructions from, adisputing party or the government of a Party with regard to trade and investment matters.Arbitrators shall not take instructions from any organisation, government or disputing partywith regard to matters related to the dispute. Arbitrators shall comply with the InternationalBar Association Guidelines on Conflicts of Interest in International Arbitration or anysupplemental rules adopted pursuant to Article X.42(2)(b) (Committee on Services andInvestment). Arbitrators who serve on the list established pursuant to paragraph 3 shall not,for that reason alone, be deemed to be affiliated with the government of a Party.7. If a disputing party considers that an arbitrator does not meet the requirements set out in paragraph 6, it shall send a notice of its intent to challenge the arbitrator within 15 days after:(a) the appointment of the arbitrator has been notified to the challenging party; or,(b) the disputing party became aware of the facts giving rise to the alleged failure to meetsuch requirements.8. The notice of an intention to challenge shall be promptly communicated to the other disputing party, to the arbitrator or arbitrators, as applicable, and to the Secretary-General of ICSID. The notice of challenge shall state the reasons for the challenge.9. When an arbitrator has been challenged by a disputing party, the disputing parties may agreeto the challenge, in which case the disputing parties may request the challenged arbitrator toresign. The arbitrator may, after the challenge, elect to resign. A decision to resign does notimply acceptance of the validity of the grounds for the challenge.10. If, within 15 days from the date of the notice of challenge, the challenged arbitrator haselected not to resign, the Secretary-General of ICSID shall, after hearing the disputing parties


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and after providing the arbitrator an opportunity to submit any observations, issue a decisionwithin 45 days of receipt of the notice of challenge and forthwith notify the disputing partiesand other arbitrators, as applicable.11. A vacancy resulting from the disqualification or resignation of an arbitrator shall be filled promptly pursuant to the procedure provided for in this Article.

Article X.26: Agreement to the Appointment of Arbitrators

1. For purposes of Article 39 of the ICSID Convention and Article 7 of Schedule C to theICSID Additional Facility Rules, and without prejudice to an objection to an arbitrator basedon a ground other than nationality:(a) the respondent agrees to the appointment of each individual member of a Tribunalestablished under the ICSID Convention or the ICSID Additional Facility Rules; and(b) an investor may submit a claim to arbitration or continue a claim under the ICSIDConvention or, as the case may be, the ICSID Additional Facility Rules only if theinvestor agrees in writing to the appointment of each member of the Tribunal.

Article X.27

:

Applicable Law and Interpretation

1. A Tribunal established under this Chapter shall render its decision consistent with thisAgreement as interpreted in accordance with the Vienna Convention on the Law of Treaties,and other rules and principles of international law applicable between the Parties.2. Where serious concerns arise as regards matters of interpretation that may affect investment,the Committee on Services and Investment may, pursuant to Article X.42(3)(a), recommendto the Trade Committee the adoption of interpretations of the Agreement. An interpretationadopted by the Trade Committee shall be binding on a Tribunal established under thisChapter. The Trade Committee may decide that an interpretation shall have binding effectfrom a specific date.

Article X.28: Place of Arbitration

The disputing parties may agree on the place of arbitration under the applicable arbitration rules provided it is in the territory of a party to the New York Convention. If the disputing parties failto agree on the place of arbitration, the Tribunal shall determine the place of arbitration inaccordance with the applicable arbitration rules, provided that it shall be in the territory of either Party or of a third state that is a party to the New York Convention.

Article X.29: Claims Manifestly Without Legal Merit

1. The respondent may, no later than 30 days after the constitution of the tribunal, and in anyevent before the first session of the Tribunal, file an objection that a claim is manifestlywithout legal merit.


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Article X.34: Sharing of Information

1. A disputing party may disclose to other persons in connection with proceedings, includingwitnesses and experts, such unredacted documents as it considers necessary in the course of proceedings under this Section. However, the disputing party shall ensure that those persons protect the confidential or protected information contained in those documents.2. Nothing in this agreement shall be construed to prevent a respondent from disclosing toofficials of, as applicable, the European Union, Member States of the European Union andsub-national governments, such unredacted documents as it considers necessary in the courseof proceedings under this Section. However, the respondent shall ensure that those officials protect the confidential or protected information contained in those documents.

Article X.35: The non-disputing Party to the Agreement

1. The respondent shall, within 30 days after receipt or promptly after any dispute concerningconfidential or protected information has been resolved, deliver to the non-disputing Party:(a) a request for consultations, a notice requesting a determination of the respondent, anotice of determination of the respondent, a claim to arbitration, a request for consolidation, and any other documents that are appended to such documents;(b) on request:(i) pleadings, memorials, briefs, requests and other submissions made to thetribunal by a disputing party;(ii) written submissions made to the tribunal pursuant to Article 4 (Submission bya third person) of the UNCITRAL Transparency Rules;(iii) minutes or transcripts of hearings of the tribunal, where available; and(iv) orders, awards and decisions of the tribunal.(c) on request and at the cost of the non-disputing Party, all or part of the evidence thathas been tendered to the Tribunal unless publicly available.2. The Tribunal shall accept or, after consultation with the disputing parties, may invite, oral or written submissions from the non-disputing Party regarding the interpretation of theAgreement. The non-disputing Party may attend a hearing held under this Section.3. The Tribunal shall not draw any inference from the absence of a submission pursuant to paragraph 2.4. The Tribunal shall ensure that the disputing parties are given a reasonable opportunity to present their observations on a submission by the non-disputing Party to the Agreement.


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Article X.36: Final Award

1. Where a Tribunal makes a final award against the respondent the Tribunal may award,separately or in combination, only:(a) monetary damages and any applicable interest;(b) restitution of property, in which case the award shall provide that the respondent may pay monetary damages representing the fair market value of the property at the timeimmediately before the expropriation, or impending expropriation became known,whichever is earlier and any applicable interest in lieu of restitution, determined in amanner consistent with Article X.11 (Expropriation).

[

Notetoscrub

: subject to final check of the expropriation article]

2. Subject to paragraphs 1 and 5, where a claim is made under paragraph 1(b) of Article X.22(Submission of a Claim to Arbitration):(a) an award of monetary damages and any applicable interest shall provide that the sum be paid to the locally established enterprise;(b) an award of restitution of property shall provide that restitution be made to the locallyestablished enterprise;(c) an award of costs in favour of the investor shall provide that it is to be made to theinvestor; and(d) the award shall provide that it is made without prejudice to a right that a person, other than a person which has provided a waiver pursuant to Article X.21 (Procedural andOther Requirements for the Submission of a Claim to Arbitration), may have inmonetary damages or property awarded under a Party’s domestic law.3. Monetary damages shall not be greater than the loss suffered by the investor or, asapplicable, the locally established enterprise, reduced by any prior damages or compensationalready provided. For the calculation of monetary damages, the Tribunal shall also reduce thedamages to take into account any restitution of property or repeal or modification of themeasure.4. A Tribunal may not award punitive damages.5. A tribunal shall order that the costs of arbitration be borne by the unsuccessful disputing party. In exceptional circumstances, a tribunal may apportion costs between the disputing parties if it determines that apportionment is appropriate in the circumstances of the claim.Other reasonable costs, including costs of legal representation and assistance, shall be borne by the unsuccessful disputing party, unless the tribunal determines that such apportionment isunreasonable in the circumstances of the claim. Where only parts of the claims have been


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the proceedings. Before a Tribunal issues such an order, it shall consult with the disputing parties.

8.

On application of a disputing party, a Tribunal established under this Article, pending itsdecision under paragraph 6, may order that the proceedings of a Tribunal established under Article X.22 (Submission of a Claim to Arbitration) be stayed unless the latter Tribunal hasalready adjourned its proceedings.

9.

A Tribunal established under Article X.22 (Submission of a Claim to Arbitration) shall cede jurisdiction in relation to the claims, or parts thereof, over which a tribunal established under this Article has assumed jurisdiction.

10.

The award of the Tribunal established under this Article in relation to those claims, or partsthereof, over which it has assumed jurisdiction shall become binding on the tribunalsestablished pursuant to Article X.22 (Submission of a Claim to Arbitration) as regards thoseclaims, or parts thereof, once the conditions of Article 39(3) (Enforcement of Awards) have been fulfilled.

11.

An investor may withdraw a claim from arbitration under this Section that is subject toconsolidation and such claim may not be resubmitted to arbitration under Article X.22(Submission of a Claim to Arbitration). If it does so no later than 15 days after receipt of thenotice of consolidation, its earlier submission of the claim to arbitration shall not prevent theinvestor's recourse to dispute settlement other than under this Chapter.

12.

At the request of an investor, the Tribunal established under this Article may take suchmeasures as it sees fit in order to preserve the confidential or protected information of thatinvestor vis-à-vis other investors. Such measures may include the submission of redactedversions of documents containing confidential or protected information to the other investorsor arrangements to hold parts of the hearing in private.

Article X.42: Committee

1. The Committee on Services and Investment shall provide a forum for the Parties to consulton issues related to this Section, including:(a) difficulties which may arise in the implementation of this Chapter;(b) possible improvements of this Chapter, in particular in the light of experience anddevelopments in other international fora; and,(c) whether, and if so, under what conditions, an appellate mechanism could be createdunder the Agreement to review, on points of law

,

awards rendered by a tribunalunder this Section, or whether awards rendered under this Section could be subject tosuch an appellate mechanism developed pursuant to other institutional arrangements.Such consultations shall take into account the following issues, among others:


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(i) the nature and composition of an appellate mechanism;(ii) the applicable scope and standard of review;(iii)transparency of proceedings of an appellate mechanism;(iv)the effect of decisions by an appellate mechanism;(v) the relationship of review by an appellate mechanism to the arbitration rulesthat may be selected under Article X.22 (Submission of a Claim toArbitration); and(vi) the relationship of review by an appellate mechanism to domestic laws andinternational law on the enforcement of arbitral awards.2. The Committee shall, on agreement of the Parties, and after completion of the respectivelegal requirements and procedures of the Parties:(a) establish and maintain the list of arbitrators pursuant to Article X.25(3)(Constitutionof the Tribunal);(b) adopt a code of conduct for arbitrators to be applied in disputes arising out of thisChapter, which may replace or supplement the rules in application

,

and that mayaddress topics including:(i) disclosure obligations;(ii) the independence and impartiality of arbitrators; and(iii)confidentiality.The Parties shall make best efforts to ensure that the list of arbitrators is established and thecode of conduct adopted no later than the entry into force of the Agreement, and in any eventno later than two years after the entry into force of the Agreement.

[

Notetoscrub

: agreed in principle that the time periods run from provisional application, if any. Drafting to be checked in the light of the general and final provisions of CETA]

3. The Committee may, on agreement of the Parties, and after completion of the respective legalrequirements and procedures of the Parties:(a) recommend to the Trade Committee the adoption of interpretations of the agreement pursuant to Article X.27(2) (Applicable Law and Interpretation);


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(b) adopt and amend rules supplementing the applicable arbitration rules, and amend theapplicable rules on transparency. Such rules and amendments are binding on themembers of a Tribunal established under this Section;(c) adopt rules for mediation for use by disputing parties as referred to in Article X.19(Mediation); and(d) recommend to the Trade Committee the adoption of any further elements of the fair and equitable treatment obligation pursuant to Section 5, Article X.9(4) (Treatment of Investors and of Covered Investments).

Article X.43: Exclusion

The dispute settlement provisions of this Section and of Chapter x (Dispute Settlement) do notapply to the matters referred to in Annex X. 43.1 (Exclusions from Dispute Settlement).


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Annex X.43.1 - Exclusions from Dispute Settlement

A decision by Canada following a review under the

Investment Canada Act

, with respect towhether or not to permit an investment that is subject to review, is not subject to the disputesettlement provisions under Sections 6 (Investor-to-State Dispute Settlement) of this Chapter, or to Chapter X (Dispute Settlement) of this Agreement. For greater certainty, this exclusion iswithout prejudice to the right of any Party to have recourse to Chapter X (Dispute Settlement)with respect to the consistency of a measure with a Party’s reservations.


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Annex X.11: Expropriation

The Parties confirm their shared understanding that:1. Expropriation may be either direct or indirect:(a) direct expropriation occurs when an investment is nationalised or otherwise directlyexpropriated through formal transfer of title or outright seizure; and(b) indirect expropriation occurs where a measure or series of measures of a Party has aneffect equivalent to direct expropriation, in that it substantially deprives the investor of the fundamental attributes of property in its investment, including the right to use,enjoy and dispose of its investment, without formal transfer of title or outrightseizure.2. The determination of whether a measure or series of measures of a Party, in a specific factsituation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry thatconsiders, among other factors:(a) the economic impact of the measure or series of measures, although the sole fact thata measure or series of measures of a Party has an adverse effect on the economicvalue of an investment does not establish that an indirect expropriation has occurred;(b) the duration of the measure or series of measures by a Party;(c) the extent to which the measure or series of measures interferes with distinct,reasonable investment-backed expectations; and(d) the character of the measure or series of measures, notably their object, context andintent.3. For greater certainty, except in the rare circumstance where the impact of the measureor series of measures is so severe in light of its purpose that it appears manifestly excessive

,

non-discriminatory measures of a Party that are designed and applied to protect legitimate public welfare objectives, such as health, safety and the environment, do not constituteindirect expropriations.


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Declaration to Investment Chapter Article X.11 Paragraph 6

Mindful that investor state dispute settlement tribunals are meant to enforce the obligationsreferred to in Article X.17(1): Scope of a Claim to Arbitration of Chapter x (yyy), and are not anappeal mechanism for the decisions of domestic courts, the Parties recall that the domestic courtsof each Party are responsible for the determination of the existence and validity of intellectual property rights. The Parties further recognize that each Party shall be free to determine theappropriate method of implementing the provisions of this Agreement regarding intellectual property within their own legal system and practice. The Parties agree to review the relation between intellectual property rights and investment disciplines within 3 years after entry intoforce of the agreement or at the request of a Party. Further to this review and to the extentrequired, the Parties may issue binding interpretations to ensure the proper interpretation of thescope of investment protection under this Agreement in accordance with the provisions of Article X.27: Applicable Law and Rules of Interpretation of Chapter x (Investment)."


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JOINT DECLARATION

With respect to Article X.15 (Denial of Benefits - Investment), Article Y (Denial of Benefits – CBTS) and Article XX (National Security Exception – Exceptions), the Parties confirm their understanding that measures that are ‘related to the maintenance of international peace and security’ include the protection of human rights.


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11. CROSS-BORDER TRADE IN SERVICESCHAPTER XXCROSS-BORDER TRADE IN SERVICES23 July, 2014Article X-01: Scope

1. This Chapter applies to measures adopted or maintained by a Party affecting cross-border trade in services by service suppliers of the other Party, including measures affecting:(a) the production, distribution, marketing, sale and delivery of a service;(b) the purchase or use of, or payment for, a service; and,(c) the access to and use of, in connection with the supply of a service, services which arerequired to be offered to the public generally.2. This Chapter does not apply to measures affecting:(a) services supplied in the exercise of governmental authority;(b) for the European Union, audio-visual services;(c) for Canada, cultural industries;(d) financial services as defined in Chapter XX (Financial Services);(e) air services, related services in support of air services and other services supplied by means of air transport

18

, other than;(i) aircraft repair and maintenance services when an aircraft is withdrawn from service;(ii) the selling and marketing of air transport services;(iii) computer reservation system services;(iv) ground handling services(v) airport operation services(f) procurement by a Party for goods and services purchased for governmental purposes and notwith a view to commercial resale or with a view to use in the supply of goods and services for

18

These services include services where an aircraft is being used to carry out specialised activities in sectorsincluding agriculture, construction, photography, surveying, mapping, forestry, observation and patrol, andadvertising, where this specialised activity is provided by the person that is responsible for the operation of theaircraft.


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but does not include the supply of a service in the territory of a Party by a person or an enterpriseof the other Party.

aircraft repair and maintenance services

mean such activities when undertaken on an aircraftor a part thereof while it is withdrawn from service and do not include so-called linemaintenance;

airport operation services

means the operation and/or management, on a fee or contract basis,of airport infrastructure, including terminals, runways, taxiways and aprons, parking facilities,and intra-airport transportation systems.For greater certainty, Airport Operation Services do not include the ownership of, or investmentin, airports or airport lands, or any of the functions carried out by a board of directors.Airport Operation Services do not include Air Navigation Services.

computer reservation system services

mean services supplied by computerised systems thatcontain information about air carriers' schedules, availability, fares and fare rules, through whichreservations can be made or tickets may be issued;

ground handling services

means the provision, on a fee or contract basis, of the followingservices: ground administration and supervision, including load control and communications; passenger handling; baggage handling; cargo and mail handling; ramp handling and aircraftservices; fuel and oil handling; aircraft line maintenance, flight operations and crewadministration; surface transport; and catering services. Ground handling services do not includesecurity services or the operation or management of centralised airport infrastructure, such as baggage handling systems, de-icing facilities, fuel distribution systems, and intra-airporttransport systems.3.

selling and marketing of air transport services

mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketingsuch as market research, advertising and distribution. These activities do not include the pricingof air transport services nor the applicable conditions;

services supplied in the exercise of governmental authority

means any service that is suppliedneither on a commercial basis, nor in competition with one or more service suppliers.

service supplier

means a person that supplies or seeks to supply a service.


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– 193 –

A

NNEX

XU

NDERSTANDING ON

N

ATIONAL

T

REATMENT WITH RESPECT TO THE

C

ROSS

-B

ORDER

P

ROVISION OF

S

ERVICES

1. The European Union and Canada share the following understanding with respect to theapplication of Article X (CBTS - National Treatment) to treatment accorded by a provincial or territorial government in Canada, or by a government of or in a European Member State withrespect to the cross-border supply of services as defined in Chapter X or the supply of a service by a natural person of a Party in the territory of the other Party.2. Pursuant to Article X (CBTS - National Treatment), treatment

“no less favourable than themost favourable treatment accorded, in like situations, by that government to its own service suppliers and services"

does not extend to a person of the other Party, or to a service provided by such persons where:a) in the case of Canada, a provincial or territorial government of Canada accords morefavourable treatment to a service supplier which is a person of another provincial or territorial government of Canada, or to a service provided by such a supplier; and b) in the case of the European Union,(i) a government of a Member State of the European Union accords morefavourable treatment to a service supplier which is a person of another Member State or to a service provided by such a supplier;(ii) a regional government of a Member State of the European Union accordsmore favourable treatment to a service supplier which is a person of another regionalgovernment of that Member State, or to a service provided by such a supplier; and,c) such more favourable treatment is accorded pursuant to specific mutual rights andobligations applicable between these governments.3. For the European Union, paragraph 2 includes in particular treatment accorded pursuant to theTreaty on the Functioning of the European Union on the free movement of persons and services,as well as to treatment accorded by any measure adopted pursuant to that Treaty. A governmentof or in a European Member State may accord more favourable treatment pursuant to the Treatyto those natural persons who are nationals of another Member State of the European Union, or toenterprises formed in accordance with the law of another Member State of the European Unionand having their registered office, central administration or principal place of business within theEuropean Union, and to the services of such suppliers.4. For Canada, paragraph 2 includes in particular treatment accorded pursuant to the CanadianAgreement on Internal Trade (AIT) as well as to treatment accorded by any measure adopted pursuant to the AIT and from regional agreements on the free movement of persons and services.A provincial or territorial government in Canada may accord a more favourable treatment pursuant to these agreements to those persons who are residents in the territory of a party to theAIT or regional agreement or to enterprises formed in accordance with the law of a party to the


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AIT or regional agreement that have their registered office, central administration or principal place of business within Canada, and to the services of such suppliers.

Note for Legal Scrub: references to “provincial, territorial, regional” to reflect outcome onfinal definitions

.


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– 195 –

A

NNEX

X

Understanding on New Services Not Classified in the United Nations Provisional Central ProductClassification (CPC), 1991

1. The Parties agree that Chapter x (Domestic Regulation), Article X (CBTS-National Treatment), ArticleX (CBTS – Market Access), and Article X (CBTS – MFN) do not apply in respect to any measurerelating to a new service that cannot be classified in the United Nations Provisional Central ProductClassification (CPC), 1991.2. To the extent possible, each Party shall notify the other Party prior to adopting measures inconsistentwith Chapter X (Domestic Regulation), Article X (CBTS-National Treatment), Article X (CBTS – Market Access) and Article X (CBTS – MFN) with respect to a new service, as referred to in paragraph 1.3. At the request of a Party, the Parties shall enter into negotiations to incorporate the new service into thescope of the Agreement.4. For greater certainty, paragraph 1 does not apply to an existing service that could be classified in theUnited Nations Provisional Central Product Classification (CPC), 1991 but that could not previously be provided on a cross-border basis due to lack of technical feasibility.


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Temporary Entry – Text

Final 1 August 2014

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– 201 –

1. Senior Personnel means natural persons working in a senior positionwithin an enterprise who:(a) primarily direct the management of the enterprise, or direct theenterprise, a department or sub-division thereof; and(b) exercise wide latitude in decision making, which may includehaving the authority personally to recruit and dismiss or takingother personnel actions (such as promotion or leaveauthorizations), and(i) receive only general supervision or direction principallyfrom higher level executives, the board of directors and/or stockholders of the business or their equivalent, or (ii) supervise and control the work of other supervisory, professional or managerial employees and exercisediscretionary authority over day-to-day operations.2. Specialists means natural persons working within an enterprise who possess:(h) uncommon knowledge of the enterprise's products or services andits application in international markets; or (i) an advanced level of expertise or knowledge of the enterprise’s processes and procedures such as its production, researchequipment, techniques or management.In assessing such expertise or knowledge, Parties will consider abilities that are unusual and different from those generally found in a particular industry and that cannot be easily transferred to another individual in the short-term. Those abilities would have been obtainedthrough specific academic qualifications or extensive experience withthe enterprise.

3

. Graduate trainees means natural persons who:(j) possess a university degree; and(k) are temporarily transferred to an enterprise in the territory of theother Party for career development purposes, or to obtain trainingin business techniques or methods.(c) ‘Contractual services suppliers’ means natural persons employed by an enterprise of oneParty which has no establishment in the territory of the other Party and which hasconcluded a

bona fide

contract (other than through an agency as defined by CPC 872) tosupply services with a consumer in the latter Party requiring the presence on a


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Article 8:Contractual Services Suppliers and Independent Professionals

1. In accordance with Annex I, each Party shall allow the temporary entry and stay of contractual services suppliers of the other Party, subject to the following conditions:(a) The natural persons must be engaged in the supply of a service on a temporary basis as employees of an enterprise, which has obtained a service contract for a period not exceeding twelve months. If the service contract is longer than 12months, the commitments in this chapter shall only apply for the initial 12months of the contract.(b) The natural persons entering the other Party must be offering such services asan employee of the enterprise supplying the services for at least the year immediately preceding the date of submission of an application for entry intothe other Party. In addition, the natural persons must possess, at the date of submission of an application for entry into the other Party, at least three years professional experience

22

in the sector of activity which is the subject of thecontract.(c) The natural persons entering the other Party must possess (i) a universitydegree or a qualification demonstrating knowledge of an equivalent level

23

and(ii) professional qualifications where this is required to exercise an activity pursuant to the law, regulations or other requirements of the Party, where theservice is supplied.(d) The natural person shall not receive remuneration for the provision of servicesother than the remuneration paid by the enterprise employing the contractualservice supplier during their stay in the territory of the other Party.(e) Access accorded under the provisions of this Article relates only to the serviceactivity which is the subject of the contract. Entitlement to utilize the professional title of the Party where the service is provided may be granted, asrequired, by the Relevant Authority (as defined in Chapter […] MutualRecognition of Professional Qualifications), through a Mutual RecognitionAgreement or otherwise.(f) The service contract shall comply with the laws, regulations and other legalrequirements of the Party where the contract is executed.2. In accordance with Annex I, each Party shall allow the temporary entry and stay of independent professionals of the other Party, subject to the following conditions:(a) The natural persons must be engaged in the supply of a service on a temporary basis as self-employed persons established in the other Party and must have

22

Obtained after having reached the age of majority.

23

Where the degree or qualification has not been obtained in the Party where the service is supplied, thatParty may evaluate whether this is equivalent to a university degree required in its territory. For the purposes of assessing such equivalence, the provisions of Appendix C, subject to reservations in Annex I,shall apply.


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obtained a service contract for a period not exceeding twelve months. If theservice contract is longer than 12 months, the commitments in this chapter shall only apply for the initial 12 months of the contract.(b) The natural persons entering the other Party must possess, at the date of submission of an application for entry into the other Party, at least six years professional experience in the sector of activity which is the subject of thecontract.(c) The natural persons entering the other Party must possess (i) a universitydegree or a qualification demonstrating knowledge of an equivalent level

24

andii) professional qualifications where this is required to exercise an activity pursuant to the law, regulations or other requirements of the Party, where theservice is supplied.(d) Access accorded under the provisions of this Article relates only to the serviceactivity which is the subject of the contract. Entitlement to utilize the professional title of the Party where the service is provided may be granted, asrequired, by the Relevant Authority (as defined in Chapter […] MutualRecognition of Professional Qualifications), through a Mutual RecognitionAgreement or otherwise.(e) The service contract shall comply with the laws, regulations and other legalrequirements of the Party where the contract is executed3. Unless otherwise specified in Annex I, a Party may not maintain or adopt limitations on thetotal number of contract service suppliers and independent professionals of the other Partyallowed temporary entry, in the form of numerical restrictions or an economic needs test.4. The length of stay of contractual services suppliers and independent professionals shall befor a cumulative period of not more than twelve months, with extensions possible at thediscretion of the Party, in any twenty-four month period or for the duration of the contract,whichever is less.

Article 9: Short-Term Business Visitors

6. In accordance with Appendix B, each Party shall allow the temporary entry and stay of short-term business visitors of the other Party, with a view to carrying out the activitieslisted in Appendix D, subject to the following conditions:(a) they are not engaged in selling their goods or services to the general public;

24

Where the degree or qualification has not been obtained in the Party where the service is supplied, thatParty may evaluate whether this is equivalent to a university degree required in its territory. For the purposes of assessing such equivalence, the provisions of Appendix C, subject to reservations in Annex I,shall apply.


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Appendix A - EU Member States' List of contact points

AT

For residence and visa issues:Department III/4 - Residence, Civil Status and Citizenship MattersFederal Ministry of the Interior For labour market issues:EU labour market laws and international affairs of labour market lawsFederal Ministry for Labour, Social Affairs and Consumer Protection

BE

Direction générale Potentiel économiquePolitique Commerciale

BG

Director of "International labour migration and mediation"Employment Agency

CY

Director of Civil Registry and Migration DepartmentMinistry of Interior

CZ

Ministry of Industry and TradeDepartment of Common Trade Policy and International Economic Organisations

DE

CETA Advisor Canadian German Chamber of Industry and Commerce Inc.

DK

Danish Agency for Labour Market and RecruitmentMinistry of Employment

EE

Head of Migration- and Border Policy DepartmentEstonian Ministry of the Interior

EL

Directorate for Justice, Home Affairs & Schengen issues


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LV

: For pre-investment phase maximum length of stay is limited to 90 days withinany six months period. Extension in post-investment phase to 1 year, subject tocriteria in national legislation such as field and amount of investment made.

UK

: The category of investors is not recognised: Unbound.

Intra-corporate Transferees (specialists and senior personnel)

All sectors BG

: The number of foreign natural persons employed within a Bulgarian enterprisemay not exceed 10 percent of the average annual number of citizens of the EuropeanUnion employed by the respective Bulgarian enterpriseA. Where less than 100 persons are employed, the number may, subject to authorisation, exceed 10 percent.

AT, CZ, SK, UK

: ICT needs to be employed by an enterprise other than a non- profit organisation, otherwise: Unbound.

FI

: Senior personnel needs to be employed by an enterprise other than a non-profitorganisation.

HU

: Natural persons who have been a partner in an enterprise do not qualify to betransferred as intra-corporate transferees.

Intra-corporate Transferees (graduate trainees)

All sectors AT, CZ, FR, DE, ES, HU, SK

: The training which is to be delivered as a result of the transfer of a graduate trainee to an enterprise must be linked to the universitydegree which has been obtained by the graduate trainee.

BG, HU

: Economic needs test.

CZ, FI, SK, UK

: Graduate trainee needs to be employed by an enterprise other thana non-profit organisation, otherwise: Unbound.

Short Term Business Visitors

All activities inAppendix DDK, HR:

Work permit, including economic needs test, required in case the Shortterm business visitor provides a service in the territory of Denmark or Croatia,respectively.

LV

: Work permit required for operations/activities to be performed on the basis of acontract.

SK:

In case of providing a service in the territory of Slovakia, a work permit,including economic needs test, is required beyond 7 days in a month or 30 days incalendar year.

UK

: The category of short term business visitors is not recognised: Unbound.


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Research and Design AT:

Work permit, including economic needs test, required, except for researchactivities of scientific and statistical researchers.

NL:

Work permit required, including economic needs test.

Marketing research AT:

Work permit required, including economic needs test. Economic needs test iswaived for research and analysis activities for up to 7 days in a month or 30 days ina calendar year. University degree required.

NL:


Trade Fairs andExhibitionsAT:

Work permit, including economic needs test, required for activities beyond 7days in a month or 30 days in a calendar year.

After-Sales or After-Lease ServiceAT:

Work permit required, including economic needs test. Economic needs test iswaived for persons training workers to perform services and possessing uncommonknowledge.

CZ

: Work permit is required beyond 7 days in a month or 30 days in calendar year.

FI:

Depending on the activity, a residence permit may be required.

SE:

Work permit required, except for (i) people who participate in training, testing, preparation or completion of deliveries, or similar activities within the framework of a business transaction, or (ii) fitters or technical instructors in connection withurgent installation or repair of machinery for up to two months, in the context of anemergency. No economic needs test performed.

CommercialTransactionsAT

: Work permit, including economic needs test, required for activities beyond 7days in a month or 30 days in a calendar year.

FI

: The person needs to be providing services as an employee of an enterpriselocated in the territory of the other Party.

NL:


Tourism personnel NL

: Work permit required, including economic needs test.

FI

: The person needs to be providing services as an employee of an enterpriselocated in the territory of the other Party.

PL:

Unbound.

SE:

Work permit required, except for drivers and staff of tourist buses. Noeconomic needs test performed.

Translation andInterpretationAT, NL

: Work permit required, including economic needs test.

PL:

Unbound.


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Appendix C - Equivalent Qualifications for Engineering Technologists and ScientificTechnologists

For the purpose of this agreement:For engineering technologists (CPC* 8672, 8673), completion of a 3 year post-secondary degree from an officially recognized institution in engineering technologyshall be considered equivalent to a university degree.For scientific technologists (CPC* 881, 8671, 8674, 8676, 851, 852, 853, 8675, 883),completion of a 3 year post-secondary degree from an officially recognized institutionin the disciplines of agriculture, architecture, biology, chemistry, physics, forestry,geology, geophysics, mining and energy shall be considered equivalent to a universitydegree.


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Temporary Entry – CSS/ IP Annex

Final 1 August 2014

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– 215 –

Annex ISECTORAL COMMITMENTS ON CONTRACTUAL SERVICES SUPPLIERS ANDINDEPENDENT PROFESSIONALS

1. The Parties shall allow the supply of services into their territories by contractual servicesuppliers and independent professionals of the other Party through the presence of natural persons, in accordance with Article 8 (Contractual Service Suppliers and IndependentProfessionals) of Chapter […] (Temporary Entry and Stayof Natural Persons for BusinessPurposes), for the sectors listed below, and subject to the relevant limitations.2. The list of reservations is composed of the following elements:(a) the first column indicating the sector or sub-sector in which reservations apply;and(b) the second column describing the applicable limitations.3. In identifying individual sectors and sub-sectors:(a)

CPC

means the Central Products Classification as set out in Statistical Office of the United Nations, Statistical Papers, Series M, N° 77,

CPC prov

, 1991; and(b)

CPC ver. 1.0

means the Central Products Classification as set out in StatisticalOffice of the United Nations, Statistical Papers, Series M, N° 77,

CPC ver 1.0

,1998.4. For Canada, sectoral commitments shall apply to occupations listed under level “0” and“A” of Canada’s National Occupational Classification (NOC).5. The list of reservations below does not include measures relating to qualificationrequirements and procedures, technical standards and licensing requirements and procedures,when they do not constitute a limitation within the meaning of Article 8 (Contractual ServiceSuppliers and Independent Professionals) of Chapter […] (Temporary Entry and Stay of NaturalPersons for Business Purposes). Those measures (e.g. need to obtain a licence, need to obtainrecognition of qualifications in regulated sectors, and need to pass specific examinations,including language examinations), even if not listed below, apply in any case to contractualservice suppliers and independent professionals of the Parties.6. For the EU, in the sectors where economic needs tests are applied, their main criteria will be the assessment of the relevant market situation in the Member State of the European Union or


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– 216 –

the region where the service is to be provided, including with respect to the number of, and theimpact on, existing services suppliers.7. The EU takes commitments with respect to Article 8 differentiated by its Member States,as set out in the list of reservations.8. The rights and obligations arising from this annex shall have no self-executing effect andthus confer no rights directly on natural or juridical persons.9. The following abbreviations are used in the list below:AT AustriaBE BelgiumBG BulgariaCY CyprusCZ Czech RepublicDE GermanyDK Denmark EE EstoniaES SpainEU European Union, including all its Member StatesFI FinlandFR FranceEL GreeceHR CroatiaHU HungaryIE IrelandIT ItalyLV LatviaLT LithuaniaLU LuxembourgMT Malta NL The NetherlandsPL PolandPT PortugalRO RomaniaSK Slovak RepublicSI SloveniaSE SwedenUK United KingdomCAN Canada


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Final 1 August 2014

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The obligations of Article 8.1 apply to the following sectors or sub-sectors:1) Legal advisory services in respect of international public law and foreign law (i.e.non-EU law)2) Accounting and bookkeeping services3) Taxation advisory services4) Architectural services and urban planning and landscape architecture services5) Engineering services and integrated engineering services6) Medical and dental services7) Veterinary services8) Midwives services9) Services provided by nurses, physiotherapists and paramedical personnel 10)Computer and related services11)Research and development services12)Advertising services13)Market research and opinion polling 14)Management consulting services15)Services related to management consulting 16)Technical testing and analysis services17)Related scientific and technical consulting services18)Mining 19)Maintenance and repair of vessels20)Maintenance and repair of rail transport equipment 21)Maintenance and repair of motor vehicles, motorcycles, snowmobiles and road transport equipment 22)Maintenance and repair of aircrafts and parts thereof 23)Maintenance and repair of metal products, of (non-office) machinery, of (non-transport and non-office) equipment and of personal and household goods24)Translation and interpretation services25)Telecommunication services26)Postal and courier services27)Construction and related engineering services28)Site investigation work


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29)Higher education services30)Services Relating to Agriculture, Hunting and Forestry31)Environmental services32)Insurance and insurance related services advisory and consulting services33)Other financial services advisory and consulting services34)Transport advisory and consulting services35)Travel agencies and tour operators' services36)Tourist guides services37)Manufacturing advisory and consulting servicesThe obligations of Article 8.2 apply to the following sectors or sub-sectors:1) Legal advisory services in respect of international public law and foreign law (i.e.non-EU law)2) Architectural services and urban planning and landscape architecture services3) Engineering services and integrated engineering services4) Computer and related services5) Research and development services6) Market research and opinion polling 7) Management consulting services8) Services related to management consulting 9) Mining 10) Translation and interpretation services11) Telecommunication services12) Postal and courier services13) Higher education services14) Insurance related services advisory and consulting services15) Other financial services advisory and consulting services16) Transport advisory and consulting services17) Manufacturing advisory and consulting services


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– 222 –

Sector or sub-sector Description of reservations

In

FR

: Economic needs test except for psychologists, where: unbound.In

AT

: Unbound except for psychologists and dental services, where:Economic needs test.In

BE, BG, EL, FI, HR, HU, LT, LV, SK, UK

: Unbound.

CAN

: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Veterinary services

(CPC 932)CSS:In

SE

: None.In

CY, CZ, DE, DK, EE, EL, ES, FI, FR, IE, IT, LT, LU, MT, NL, PL,PT, RO, SI

: Economic needs test.In

AT, BE, BG, HR, HU, LV, SK, UK

: Unbound.

CAN

: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Midwives services

(part of CPC 93191)CSS:In

SE:

None.In

AT, CY, CZ, DE, DK, EE, EL, ES, FR, IE, IT, LT, LV, LU, MT, NL,PL, PT, RO, SI:

Economic needs test.In

BE, BG, FI, HR, HU, SK, UK

: Unbound.

CAN

: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Services provided by nurses,physiotherapists and paramedicalpersonnel

(part of CPC 93191)CSS:


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Final 1 August 2014

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– 223 –


In

SE

: None.In

AT, CY, CZ, DE, DK, EE, EL, ES, FR, IE, IT, LT, LV, LU, MT, NL,PL, PT, RO, SI


BE, BG, FI, HR, HU, SK, UK

: Unbound.

CAN

: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Computer and related services

(CPC 84)CSS:In

BE, CY, DE, EE, EL, ES, FR, HR, IE, IT, LU, LV, MT, NL, PL, PT,SI, SE, UK:

None.In

FI

: None, except: The natural person must demonstrate that (s)he possesses special knowledge relevant to the service being supplied.In

AT, BG, CZ, HU, LT, RO, SK:


DK:

Economic needs test except for CSS stays of up to three months.

CAN

: None.IP:In

CY, DE, EE, EL, FR, IE, LU, LV, MT, NL, PL, PT, SI, SE, UK:

None.In

FI

: None, except: The natural person must demonstrate that (s)he possesses special knowledge relevant to the service being supplied.In

AT, BE, BG, CZ, DK, ES, HU, IT, LT, RO, SK:


HR

: Unbound.

CAN

: None.

Research and developmentServices

(CPC 851, 852 excluding psychologists services

28

, 853)CSS:

EU except in SE

: A hosting agreement with an approved researchorganisation is required

29

.

EU

except in

CZ, DK, SK

: NoneIn

CZ, DK, SK


28

Part of CPC 85201, which is to be found under medical and dental services.

29

For all Member States except UK and DK, the approval of the research organisation and the hostingagreement have to meet the conditions set pursuant to EU Directive 2005/71/EC.


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Final 1 August 2014

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– 226 –

Sector or sub-sector Description of reservationsTechnical testing and analysisservices

(CPC 8676) CSS:In

BE, CY, DE, EE, EL, ES, FR, HR, IE, IT, LU, NL, PL, SI, SE, UK

: None.In

AT, BG, CZ, FI, HU, LT, LV, MT, PT, RO, SK


DK

: Economic needs test except for CSS stays of up to three months.

CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Related scientific and technicalconsulting services

(CPC 8675) CSS:In

BE, CY, EE, EL, ES, HR, IE, IT, LU, NL, PL, SI, SE, UK

: None.In

AT, CZ, DE, DK, FI, HU, LT, LV, MT, PT, RO, SK

: Economic needstest.In

DE

: None, except for publicly appointed surveyors, where: Unbound.In

FR

: None, except for “surveying” operations relating to the establishmentof property rights and to land law, where: Unbound.In

BG

: Unbound.

CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Mining

(CPC 883, advisory andconsulting services only)CSS:In

BE

,

CY, DE, EE, EL, ES, FI, FR, HR, IE, IT, LV, LU, MT, NL, PL,PT, SI, SE, UK

: None.In

AT, BG, CZ, HU, LT, RO, SK


DK


CAN

: None.IP:


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Final 1 August 2014

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– 227 –


In

CY, DE, EE, EL, FI, FR, HR, IE, LV, LU, MT, NL, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, ES, HU, IT, LT, PL, RO, SK

: Economic needstest.

CAN

: None.

Maintenance and repair of vessels

(part of CPC 8868)CSS:In

BE, CY, EE, EL, ES, FR, HR, IT, LV, LU, NL, PL, PT, SI, SE, UK

: NoneIn

AT, BG, CZ, DE, DK, FI, HU, IE, LT, MT, RO, SK


CAN

: None, except for Managers, where: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Maintenance and repair of railtransport equipment

(part of CPC 8868) CSS:In

BE, CY, EE, EL, ES, FR, HR, IT, LV, LU, MT, NL, PL, PT, SI, SE,UK

: None.In

AT, BG, CZ, DE, DK, FI, HU, IE, LT, RO, SK


CAN


EU:

Unbound.

CAN:

Unbound.

Maintenance and repair of motorvehicles, motorcycles, snowmobilesand road transport equipment

(CPC 6112, CPC 6122, part of CPC8867 and part of CPC 8868)CSS:In

BE, CY, EE, EL, ES, FR, HR, IT, LV, LU, NL, PL, PT, SI, SE, UK

: None.In

AT, BG, CZ, DE, DK, FI, HU, IE, LT, MT, RO, SK


CAN

: None, except for Managers, where: Unbound.


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Final 1 August 2014

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– 228 –


IP:

EU:

Unbound.

CAN:

Unbound.

Maintenance and repair of aircraftand parts thereof

(part of CPC 8868) CSS:In


: None.In

AT, BG, CZ, DE, DK, FI, HU, IE, LT, RO, SK


CAN


EU:

Unbound.

CAN:

Unbound.

Maintenance and repair of metalproducts, of (non office)machinery, of (non transport andnon office) equipment and of personal and household goods

31

(CPC 633, CPC 7545, CPC 8861,CPC 8862, CPC 8864, CPC 8865 andCPC 8866)CSS:In


: None.In

AT, BG, CZ, DE, DK, HU, IE, LT, RO, SK


FI

: Unbound, except in the context of an after-sales or after-leasecontract, where: the length of stay is limited to six months; for maintenanceand repair of personal and household goods (CPC 633): Economic needstest.

CAN

: None, except for Managers in Utilities, where: Unbound.IP:

EU:

Unbound.

CAN:

Unbound.

Translation and interpretationServices

(CPC 87905, excluding official or certified activities)CSS:In

BE, CY, DE, EE, EL, ES, FR, HR, IT, LU, MT, NL, PL, PT, SI, SE,UK

: None.In

AT, BG, CZ, DK, FI, HU, IE, LT, LV, RO, SK


31

Maintenance and repair services of office machinery and equipment including computers (CPC 845) are to be found under computer services.


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– 229 –

Sector or sub-sector Description of reservationsCAN

: None.IP:In

CY, DE, EE, FR, LU, LV, MT, NL, PL, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, EL, ES, FI, HU, IE, IT, LT, RO, SK

: Economicneeds test.In

HR

: Unbound.

CAN

: None.

Telecommunication services

(CPC7544, advisory and consultingservices only) CSS:In

BE, CY, DE, EE, EL, ES, FI, FR, HR, IE, IT, LV, LU, MT, NL, PL,PT, SI, SE, UK

: None.In



DK


CAN

: None, except for Managers, where: Unbound.IP:In

CY, DE, EE, EL, FI, FR, HR, IE, LV, LU, MT, NL, PL, PT, SI, SE,UK

: None.In

AT, BE, BG, CZ, DK, ES, HU, IT, LT, RO, SK


CAN


Postal and courier services

(CPC751, advisory and consulting servicesonly) CSS:In BE,

CY, DE, EE, EL, ES, FR, HR, IE, IT, LV, LU, MT, NL, PL, PT,SI, SE, UK

: None.In

AT, BG, CZ, FI, HU, LT, RO, SK


DK


CAN


CY, DE, EE, EL, FR, HR, IE, LV, LU, MT, NL, PL, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, ES, FI, HU, IT, LT, RO, SK


CAN



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– 230 –

Sector or sub-sector Description of reservationsConstruction and relatedengineering services

CPC 511, 512, 513, 514, 515, 516,517, 518. BG: CPC 512, 5131, 5132,5135, 514, 5161, 5162, 51641, 51643,51644, 5165, 517.CSS:

EU:

Unbound except in

BE, CZ, DK, ES, FR, NL

and

SE

.In

BE, DK, ES, NL, SE:

None.In

CZ


FR

: Unbound except for technicians, where: the work permit is deliveredfor a period not exceeding six months. Compliance with an economic needstest is required.

CAN


EU:

Unbound.

CAN:

Unbound.

Site investigation work

(CPC 5111)CSS:In

BE, CY, DE, EE, EL, ES, FR, HR, IE, IT, LU, MT, NL, PL, PT, SI,SE, UK

: None.In

AT, BG, CZ, FI, HU, LT, LV, RO, SK


DK


CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Higher education services

(CPC 923)CSS:

EU

except in

LU, SE

: Unbound.In

LU

: Unbound, except for university professors, where: None.In

SE

: None, except for publicly funded and privately funded educationalservices suppliers with some form of State support, where: Unbound.

CAN

: Unbound.IP:

EU

except in

SE

: Unbound.


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In

SE

: None, except for publicly funded and privately funded educationalservices suppliers with some form of State support, where: Unbound.

CAN

: Unbound.

Agriculture, hunting and forestry

(CPC 881, advisory and consultingservices only) CSS:

EU

except in

BE, DE, DK, ES, FI, HR

and

SE

: UnboundIn

BE, DE, ES, HR, SE

: NoneIn

DK


FI:

Unbound except for advisory and consulting services relating toforestry, where: None.

CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Environmental services

(CPC 9401

32

, CPC 9402, CPC 9403,CPC 9404

33

, part of CPC 94060

34

,CPC 9405, part of CPC 9406, CPC9409)CSS:In

BE, CY, EE, ES, FI, FR, HR, IE, IT, LU, MT, NL, PL, PT, SI, SE,UK

: None.In

AT, BG, CZ, DE, DK, EL, HU, LT, LV, RO, SK


CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Insurance and insurance relatedservices

(advisory and consultingservices only) CSS:In BE,

CY, DE, EE, EL, ES, FR, HR, IE, IT, LV, LU, MT, NL, PL, PT,SI, SE, UK

: None.In

AT, BG, CZ, FI, LT, RO, SK


DK


32

Corresponds to sewage services.

33

Corresponds to cleaning services of exhaust gases.

34

Corresponds to parts of nature and landscape protection services.


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In

HU

: Unbound.

CAN

: None.IP:In

CY, DE, EE, EL, FR, HR, IE, LV, LU, MT, NL, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, ES, FI, IT, LT, PL, RO, SK

: Economic needstest.In

HU

: Unbound.

CAN

: None.

Other financial services

(advisoryand consulting services only)CSS:In BE,

CY, DE, ES, EE, EL, FR, HR, IE, IT, LV, LU, MT, NL, PL, PT,SI, SE, UK

: None.In

AT, BG, CZ, FI, LT, RO, SK


DK

: Economic needs test except for CSS that stays of up to three months.In

HU

: Unbound.

CAN

: None.IP:In

CY, DE, EE, EL, FR, HR, IE, LV, LU, MT, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, ES, FI, IT, LT, NL, PL, RO, SK

: Economicneeds test.In

HU

: Unbound.

CAN

: None.

Transport

(CPC 71, 72, 73, 74,advisory and consulting servicesonly) CSS:In

CY, DE, EE, EL, ES, FI, FR, HR, IE, IT, LV, LU, MT, NL, PL, PT,SI, SE, UK

: None.In



DK

: Economic needs test except for CSS stays of up to three months.In

BE

: Unbound.

CAN



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In

CY, DE, EE, EL, FI, FR, HR, IE, LV, LU, MT, NL, PT, SI, SE, UK:

None.In

AT, BG, CZ, DK, ES, HU, IT, LT, RO, SK


PL:

Economic needs test, except for air transport, where: None.In

BE

: Unbound.

CAN


Travel agencies and tour operatorsservices (including tourmanagers

35

)

(CPC 7471)CSS:In

AT, CY, CZ, DE, EE, ES, FR, HR, IT, LU, NL, PL, SI, SE, UK

: None.In

BG, EL, FI, HU, LT, LV, MT, PT, RO, SK


DK

: Economic needs test except for CSS stays of up to three months.In

BE, IE

: Unbound except for tour managers, where: None.

CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Tourist guides services

(CPC 7472)CSS:In

SE, UK:

None.In

AT, BE, BG, CY, CZ, DE, DK, EE, FI, FR, EL, HU, IE, IT, LV, LU,MT, NL, RO, SK, SI


ES, HR, LT, PL, PT

: Unbound.

CAN

: None.IP:

EU:

Unbound.

CAN:

Unbound.

Manufacturing

(CPC 884, 885,advisory and consulting servicesonly) CSS:In BE,

CY, DE, EE, EL, ES, FI, FR, HR, IE, IT, LV, LU, MT, NL, PL,

35

Services suppliers whose function is to accompany a tour group of a minimum of 10 persons, withoutacting as guides in specific locations.


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Sector or sub-sector Description of reservationsPT, SI, SE, UK

: None.In



DK


CAN


CY, DE, EE, EL, FI, FR, HR, IE, LV, LU, MT, NL, PT, SI, SE, UK

: None.In

AT, BE, BG, CZ, DK, ES, HU, IT, LT, PL, RO, SK


CAN



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ANNEX XXX - Understanding on Spouses1. For the European Union Member States that are subject to the application of theDirective, the European Union shall extend to spouses of Canadian citizens who are intra-corporate transferees to the European Union, rights of temporary entry and stayequivalent to those granted to spouses of intra-corporate transferees under the ICTDirective; and2. Canada shall extend to spouses of European Union citizens who are intra-corporatetransferees to Canada equivalent treatment to that granted to spouses of Canadian citizenswho are intra-corporate transferees in the Member State of origin of the European Unionintra-corporate transferee.


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13. MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONSChapter xxM

UTUAL

R

ECOGNITION OF

P

ROFESSIONAL

Q

UALIFICATIONS

31 July, 2014Article 1: Objectives and Scope

1. This Chapter establishes the framework to facilitate a fair, transparent and consistent regimefor the mutual recognition of professional qualifications by the Parties and determines thegeneral conditions for the negotiation of agreements on the mutual recognition of professionalqualifications (MRAs).2. This chapter applies to professions which are regulated in both Parties, including in all or some EU Member States and in all or some Provinces and Territories of Canada.3. No Party may accord recognition in a manner that would constitute a means of discriminationin the application of its criteria for the authorization, licensing or certification of servicessuppliers, or a disguised restriction on trade in services.4. An MRA adopted pursuant to this Chapter shall apply throughout the entire territories of theEU and Canada, as defined in Article X Geographical Scope of Application of Chapter Y.For greater certainty, the obligations of this chapter apply to the Exclusive Economic Zones andContinental Shelves, as provided in the United Nations Convention on the Law of the Sea of 10December 1982:(a) of Canada as referred to in Article X.02 (Country-specific definitions – Geographical scopeof Application (a)); and(b) in which the Treaty on the European Union and the Treaty on the Functioning of theEuropean Union Treaty are applied as referred to in Article X.02 (Country-specific definitions – Geographical scope of Application (b)).

Article 2: DefinitionsJurisdiction

means the territory of Canada and of each of the Member States of the EuropeanUnion, insofar as this Agreement applies in these territories in accordance with Article XGeographical Scope of Application in Chapter Y.

Negotiating Entity

means a person or body entitled or empowered to negotiate an MRA.


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Professional experience

means the effective and lawful practice of a service activity.

Professional qualifications

mean the qualifications attested by evidence of formal qualificationand/or professional experience.

Relevant Authority

means any authority or body, designated pursuant to legislative, regulatoryor administrative provisions to recognize qualifications and authorize the practice of a professionin a jurisdiction;

Regulated profession

means a service activity, the exercise of which, including the use of a titleor designation, is subject to the possession of specific qualifications, by virtue of legislative,regulatory or administrative provisions.

Article 3: Negotiation of an agreement on the mutual recognition of professionalqualifications

a) The Parties shall encourage the Relevant Authorities or professional bodies, as appropriate, intheir respective jurisdictions to develop and provide to the Joint Committee on MutualRecognition (the Joint Committee) joint recommendations on proposed MRAs. b) A recommendation shall:i) provide an assessment of the potential value of an MRA, on the basis of criteria such as theexisting level of market openness, industry needs, and business opportunities (e.g. the number of professionals likely to benefit from the MRA), the existence of other MRAs in the sector, andexpected gains in terms of economic and business development.ii) provide an assessment as to the compatibility of their respective licensing and/or qualificationregimes and the intended approach for the negotiation of an MRA.c) in light of each Party’s consultations with its respective Relevant Authorities, the JointCommittee shall, within a reasonable period of time, review the recommendation with a view toensuring its consistency with the requirements of this Chapter. Where these requirements aresatisfied, the Joint Committee shall establish the necessary steps to negotiate and each Party shallinform its respective Relevant Authorities.d) the Negotiating Entities shall thereafter pursue the negotiation and submit a draft MRA text tothe Joint Committee.e) the Joint Committee will thereafter review the draft MRA to ensure its consistency with theAgreement.f) If in the view of the Joint Committee the MRA is consistent with the Agreement, the JointCommittee shall adopt the MRA by means of a decision, which shall be conditional uponsubsequent notification to the Committee by each Party of the fulfillment of their respectiveinternal requirements. The decision shall become binding on the Parties upon notification to the


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(viii) as appropriate, provide information and complement the guidelines set out in the Annex tothis Chapter.

Article 6: Guidelines for the Negotiation and Conclusion of Agreements on the MutualRecognition of Professional Qualifications

As part of this framework to achieve mutual recognition of qualifications, the Parties set forth inAnnex XX non-binding guidelines with respect to the negotiation and conclusion of MRAs.

Article 7: Contact Points

Each Party shall establish one or more contact points for the administration of this Chapter.


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ANNEX X YGuidelines for Agreements on the Mutual Recognition of Professional Qualifications(MRAs)Introduction

This Annex contains guidelines to provide practical guidance for and to facilitate the negotiationof MRAs with respect to regulated professions. These guidelines are non-binding and they do notmodify or affect the rights and obligations of the Parties under this Agreement.The examples listed under the various sections of these guidelines are provided by way of illustration.

Form and Content of the Agreement

This section sets out various issues that may be addressed in any negotiations and, if so agreed,included in final MRAs. It outlines some basic ideas on what might be required of foreign professionals seeking to benefit from an MRA.1. Participants

The parties to the MRA should be clearly stated.2. Purpose of AgreementThe purpose of the MRA should be clearly stated.3. Scope of the MRAThe MRA should set out clearly:i) the scope of the MRA, in terms of the specific professional titles and activities which itcovers;ii) who is entitled to use the professional titles concerned;iii) whether the recognition mechanism is based on formal qualifications, a licence obtained inthe home jurisdiction, or on some other requirement(s); andiv) whether the MRA covers temporary and/or permanent access to the profession concerned.4. Mutual Recognition ProvisionsThe MRA should clearly specify the conditions to be met for the recognition of qualifications ineach jurisdiction and the level of equivalence agreed.The following four-step process should be considered to simplify and facilitate the recognition of the qualifications.


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Four-Step Process for the Recognition of Qualifications

Step One: Verification of EquivalencyThe Negotiating Entities should verify the overall equivalence of the scopes of practice or qualifications of the regulated profession in their respective jurisdictions

.

The examination of qualifications should entail the collection of all relevant information pertaining to the scope of practice rights related to a legal competency to practice or to thequalifications required for a specific regulated profession in the respective jurisdictions.Consequently, the Negotiating Entities should:i) identify activities or groups of activities covered by the scope of practice rights of theregulated profession; andii) identify the qualifications required in each jurisdiction. These may include but are not limitedto the following elements:

a) the minimum level of education required (e.g. entry requirements, length of study,subjects studied); b) the minimum level of experience required (e.g. location, length and conditions of practical training or supervised professional practice prior to licensing, framework of ethical and disciplinary standards);c) examinations passed (especially examinations of professional competency);d) the extent to which qualifications from one jurisdiction are recognised in the other jurisdiction; and,e) the qualifications which the Relevant Authorities in each jurisdiction are prepared torecognise, for instance, by listing particular diplomas or certificates issued, or byreference to particular minimum requirements to be certified by the RelevantAuthorities of the jurisdiction of origin, including whether the possession of a certainlevel of qualification would allow recognition for some activities of the scope of practice but not others (level and length of education, major educational focuses,overall subjects and areas).There is an overall equivalence between the scope of practice rights or the qualifications of theregulated profession where there are no substantial differences in this regard between jurisdictions.Step Two: Evaluation of Substantial Differences


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There exists a substantial difference in the scope of qualifications required to exercise a regulated profession, in cases of:i) important differences in the essential knowledge, andii) significant differences in the duration or content of the training between jurisdictions.There exists a substantial difference in the scope of practice when:i) one or more professional activities do not form part of the corresponding profession in thehome jurisdictionii) these activities are subject to specific training in the host jurisdiction and,iii) the training for these activities in the host jurisdiction covers substantially different mattersfrom those covered by the applicant's qualification.Step Three: Compensatory MeasuresShould the Negotiating Entities determine that there is a substantial difference in the scope of practice rights or of formal qualifications between the jurisdictions, they may determinecompensatory measures to bridge the gap.A compensatory measure may take the form of,

inter alia

, an adaptation period or, if required, anaptitude test.Compensatory measures should be proportionate to the substantial difference which they seek toaddress. The Negotiating Entities should also evaluate any practical professional experienceobtained in the home jurisdiction to see whether such experience is sufficient to remedy, inwhole or in part, the substantial difference in the scope of practice rights or formal qualifications between the jurisdictions, prior to determining a compensatory measure.Step Four: Identification of the Conditions for RecognitionOnce the assessment of the overall equivalency of the scopes of practice rights or qualificationsof the regulated profession is completed, the Negotiating Entities should specify in the MRA:i) the legal competency required to practice the regulated profession;ii) the qualifications for the regulated profession;iii) whether compensatory measures are necessary;iv) the extent to which professional experience may compensate for any substantial differences;v) a description of any compensatory measure, including the use of any adaptation periods or aptitude tests.

5. Mechanisms for ImplementationThe MRA should state:

i) the rules and procedures to be used to monitor and enforce the provisions of the agreement;


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ii) the mechanisms for dialogue and administrative co-operation between the parties to the MRA;andiii) the means for individual applicants to address any matters arising from the interpretation or implementation of the MRA.As a guide to the treatment of individual applicants, the MRA should include details on:i) the point of contact for information on all issues relevant to the application (e.g. name andaddress of Relevant Authorities, licensing formalities, information on additional requirementswhich need to be met in the host jurisdiction);ii) the duration of the procedures for the processing of applications by the Relevant Authority of the host jurisdiction;iii) the documentation required of applicants and the form in which it should be presented ;iv) acceptance of documents and certificates issued in the host jurisdiction in relation toqualifications and licensing;v) the procedures of appeal to or review by Relevant Authorities.The MRA should also include the following commitments by Relevant Authorities:i) that requests about the measures will be promptly dealt with;ii) that adequate preparation time will be provided where necessary;iii) that any exams or tests will be arranged with reasonable frequency;iv) that fees to applicants seeking to take advantage of the terms of the MRA will becommensurate with the costs incurred by the host jurisdiction; andv) that they will supply information on any assistance programmes in the host jurisdiction for practical training, and any commitments of the host jurisdiction in that context.6. Licensing and Other Provisions in the Host Jurisdiction

Where applicable, the MRA should also set out the means by which, and the conditions under which, a licence is actually obtained following the establishment of eligibility, and what thislicence entails (e.g., a licence and its contents, membership of a professional body, use of professional and/or academic titles). Any licensing requirements other than qualifications should be explained and should include requirements relating to:(i) have an office address, maintain an establishment or be a resident;(ii) language skills;(iii) proof of good character;(iv) professional indemnity insurance;(v) compliance with host jurisdiction’s requirements for use of trade/firm names; and(vi) compliance with host jurisdiction ethics (e.g., independence and good conduct); andIn order to ensure the transparency of the system, the MRA should include the following detailsfor each host jurisdiction:


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(i) the relevant laws and regulations to be applied (e.g. disciplinary action, financialresponsibility, liability);(ii) the principles of discipline and enforcement of professional standards, including disciplinary jurisdiction and any consequential effects on practicing professional activities;(iii) the means for the ongoing verification of competence; and(iv) the criteria for, and procedures relating to, revocation of the registration.7. Revision of the Agreement

If the MRA includes terms under which it can be reviewed or revoked, the details should beclearly stated.8. Transparency

The Parties should:i) make publicly available the text of MRAs which have been concluded and,ii) notify the other Party of any modifications to qualifications that may affect the application or implementation of an MRA. Where possible, the other Party should be given an opportunity tocomment on such modifications.

Definitions

For purposes of this Annex:

Adaptation period

means the pursuit of a regulated profession in the host jurisdiction under theresponsibility of a qualified person, such period of supervised practice possibly beingaccompanied by further training. This period of supervised practice shall be subject to anassessment. The detailed rules governing the adaptation period, its assessment and the professional status of the person under supervision shall be set out, as appropriate, in the host jurisdiction’s laws and regulations;

Aptitude test

means a test limited to the professional knowledge of applicants, made by theRelevant Authorities of the host jurisdiction with the aim of assessing the ability of applicants to pursue a regulated profession in that jurisdiction;

Scope of practice

means an activity or group of activities covered by a regulated profession.


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14. DOMESTIC REGULATIONCHAPTER XXDOMESTIC REGULATION17 July, 2014A

RTICLE

X.1: S

COPE AND

D

EFINITIONS

1. This Chapter applies to measures adopted or maintained by a Party relating to licensingrequirements and procedures and qualification requirements and procedures that affect:a) cross-border supply of services as defined in Chapter X; and b) the supply of a service or pursuit of any other economic activity, through commercial presencein the territory of another Party, including the establishment of such commercial presence; and,c) the supply of a service through the presence of a natural person in the territory of the other Party, in accordance with Article 5.2 of Chapter X].2. This Chapter does not apply to licensing requirements and procedures and to qualificationrequirements and procedures:(a) pursuant to an existing non-conforming measure that is maintained by a Party as set outin its Schedule to Annex 1; or b) relating to the sectors/activities set out below:For Canada: Social Services, Aboriginal Affairs, Minority Affairs, and the collection, purification, and distribution of water, as set out in Canada's schedule to Annex II, andcultural industries.For the European Union: Health, education, and social services, gambling and bettingservices

36,

the collection, purification, and distribution of water, as set out in the EU’s scheduleto Annex II, and audio-visual services.3. For the purposes of this Chapter:"Authorisation means the granting of permission to a person to supply a service or to pursue anyother economic activity.

36

With the exception of MT.


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"Licensing requirements" are substantive requirements, other than qualification requirements,that must be complied with in order to obtain, amend or renew an authorisation;"Licensing procedures" are administrative or procedural rules, including for the amendment or renewal of a licence, that must be adhered to in order to demonstrate compliance with licensingrequirements;"Qualification requirements" are substantive requirements relating to competency, that must becomplied with in order to obtain, amend or renew an authorisation;"Qualification procedures" are administrative or procedural rules, that must be adhered to inorder to demonstrate compliance with qualification requirements;as they are applied to a person by a Party."Competent authority" is any central, regional or local government and authority, or non-governmental body in the exercise of powers delegated by central or regional or localgovernments or authorities that grants an authorisation

.A

RTICLE

X.2:

LICENSING AND QUALIFICATION REQUIREMENTS AND PROCEDURES

1. Each Party shall ensure that licensing and qualification requirements and procedures shall be based on criteria which preclude the competent authorities from exercising their power of assessment in an arbitrary manner.2. The criteria referred to in paragraph 1 shall be:a) clear and transparent; b) objective;c) established in advance and made publicly accessible.3. The Parties recognise that the exercise of statutory discretion conferred on a minister or ministers with respect to a decision on the granting of an authorisation where there is a publicinterest involved is not inconsistent with paragraph 2. c), provided that it is exercisedconsistently with the object of the applicable statute and not in an arbitrary manner, and that itsexercise is not otherwise inconsistent with this Agreement, including Article X.2.4 of thisChapter.4. Paragraph 3 does not apply to licensing and qualification requirements with respect to professional services.5. Each Party shall ensure that an authorisation shall be granted as soon as the competentauthority determines that the conditions have been met, and once granted enters into effectwithout undue delay, in accordance with the terms and conditions specified therein.


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6. Each Party shall maintain or institute judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected investor or service supplier, for a promptreview of, and where justified, appropriate remedies for, administrative decisions affecting thesupply of a service or the pursuit of any other economic activity. Where such procedures are notindependent of the agency entrusted with the administrative decision concerned, each Party shallensure that the procedures as applied in practice provide for an objective and impartial review.7. Each Party shall ensure that licensing and qualification procedures are as simple as possibleand do not unduly complicate or delay the supply of a service or the pursuit of any other economic activity.8. Any authorisation fees which applicants may incur in relation to their application shall bereasonable and commensurate with the costs incurred and shall not in themselves restrict thesupply of a service or the pursuit of any other economic activity.9. Authorisation fees do not include payments for auction, the use of natural resources, royalties,tendering or other non-discriminatory means of awarding concessions, or mandated contributionsto universal service provision.10. Each Party shall ensure that the procedures used by and the decisions of the competentauthority in the authorisation process are impartial with respect to all applicants. The competentauthority should reach its decision in an independent manner and in particular should not beaccountable to any person supplying services or pursuing economic activities for which theauthorisation is required.11. Where specific time periods for applications exist, an applicant shall be allowed a reasonable period for the submission of an application. The competent authority shall initiate the processingof an application without undue delay. Where possible, applications should be accepted inelectronic format under similar conditions of authenticity as paper submissions.12. Authenticated copies should be accepted, where considered appropriate, in place of originaldocuments.13. Each Party shall ensure that the processing of an application, including reaching a finaldecision, is completed within a reasonable timeframe from the submission of a completeapplication. Each Party should establish the normal timeframe for the processing of anapplication.14. At the request of an applicant, the competent authority shall provide, without undue delay,information concerning the status of the application.15. In the case where an application is considered to be incomplete, the competent authorityshall, within a reasonable period of time, informs the applicant, identify the additionalinformation required to complete the application, and provide an opportunity to correctdeficiencies.


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16. If an application is rejected by the competent authority, the applicant shall be informed inwriting and without undue delay. Upon request, the applicant shall also be informed of thereasons for rejection of the application and of the timeframe for an appeal or review against thedecision. An applicant should be permitted, within reasonable time limits, to resubmit anapplication.


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15. FINANCIAL SERVICESFINANCIAL SERVICES

ARTICLE 1: SCOPE

1. This Chapter applies to measures adopted or maintained by a Party relating to:(a) financial institutions of the other Party;(b) investors of the other Party, and investments of such investors, in financialinstitutions in the Party’s territory; and(c) cross-border supply of financial services.2. For greater certainty, the provisions of chapter X (Investment) apply to:(a) measures relating to investors of the Parties and investments of such investors infinancial service suppliers which are not financial institutions; [and(b) measures, other than measures relating to the supply of financial services, relatingto investors of the Parties or investments of such investors in financialinstitutions.]3. Articles X.12 (Investment – Transfers), X.11 (Investment – Expropriation), X.10(Investment Compensation for Losses), X.9 (Investment – Treatment of Investors and of Covered Investments), X.16 (Investment – Formal Requirements), [X.13 (Investment -Subrogation)], X.15 (Investment – Denial of Benefits), are hereby incorporated into and made a part of this Chapter and apply to the measures to which this Chapter applies.4. Section [Investor-State Dispute Settlement] of Chapter X (Investment) is herebyincorporated into and made part of this Chapter for claims that a Party has breached Articles 3(National Treatment) or 4 (Most Favoured Nation Treatment) with respect to the expansion,conduct, operation, management, maintenance, use, enjoyment and sale or disposition of afinancial institution or an investment in a financial institution, or Articles X.12 (Investment – Transfers), X.11 (Investment – Expropriation), X.10 (Compensation for Losses), X.9(Investment – Treatment of Investors and of Covered Investments), or X.15 (Investment – Denialof Benefits).5. This Chapter does not apply to measures adopted or maintained by a Party relating to(a) activities or services forming part of a public retirement plan or statutory systemof social security; or (b) activities or services conducted for the account or with the guarantee or using thefinancial resources of the Party, including its public entities,except that this Chapter shall apply to the extent that a Party allows any of the activities or services


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referred to in subparagraph (a) or (b) to be conducted by its financial institutions in competitionwith a public entity or a financial institution.6. Chapter X (Domestic Regulation) is hereby incorporated into and made part of thisChapter and applies to the measures to which this Chapter applies. For greater certainty, paragraph X.2 Licensing and Qualification Requirements applies to the exercise of statutory discretion by the financial regulatory authorities of the Parties.

ARTICLE 2: DEFINITIONS

For the purpose of this Chapter (a)‘financial service’ means any service of a financial nature. Financial services includeall insurance and insurance-related services, and all banking and other financialservices (excluding insurance), as well as services incidental or auxiliary to a serviceof a financial nature. Financial services include the following activities:A. Insurance and insurance-related services6. direct insurance (including co-insurance):(a) life;(b) non-life;7. reinsurance and retrocession;8. insurance intermediation, such as brokerage and agency; and9. services auxiliary to insurance, such as consultancy, actuarial, risk assessmentand claim settlement services.B. Banking and other financial services (excluding insurance):1. acceptance of deposits and other repayable funds from the public;2. lending of all types, including consumer credit, mortgage credit, factoring andfinancing of commercial transactions;3. financial leasing;4. all payment and money transmission services, including credit, charge anddebit cards, travellers cheques and bankers drafts;5. guarantees and commitments;6. trading for own account or for account of customers, whether on an exchange,in an over-the-counter market or otherwise, the following:


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(a) money market instruments (including cheques, bills, certificates of deposits);(b) foreign exchange;(c) derivative products including futures and options;(d) exchange rate and interest rate instruments, including products such asswaps, forward rate agreements;(e) transferable securities;(f) other negotiable instruments and financial assets, including bullion;7. participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of servicesrelated to such issues;8. money broking;9. asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial,depository and trust services;10. settlement and clearing services for financial assets, including securities,derivative products, and other negotiable instruments;11. provision and transfer of financial information, and financial data processingand related software;12. advisory, intermediation and other auxiliary financial services on all theactivities listed in subparagraphs (1) through (11), including credit referenceand analysis, investment and portfolio research and advice, advice onacquisitions and on corporate restructuring and strategy.(b) ‘financial service supplier’ means any person of a Party that is engaged in the business of supplying a financial service within the territory of that Party. Theterm ‘financial service supplier’ does not include a public entity.

.

(x) ‘cross-border financial service supplier of a Party’ means a person of a Party thatis engaged in the business of supplying a financial service within the territory of the Party and that seeks to supply or supplies a financial service through the cross- border supply of such service.(x) cross-border supply of financial services means the supply of a financial service:(a) from the territory of a Party into the territory of the other Party; or.(b) in the territory of a Party by a person of that Party to a person of the other Party. but does not include the supply of a service in the territory of a Party by an investment in thatterritory.


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(c) ‘public entity’ means:1. a government, a central bank or a monetary authority of a Party or any entityowned or controlled by a Party, that is principally engaged in carrying outgovernmental functions or activities for governmental purposes, not includingan entity principally engaged in supplying financial services on commercialterms; or 2. a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions.(d) ‘new financial service’ means with respect to a Party a financial service that is notsupplied in the territory of a Party but which is supplied in the territory of theother Party and includes any new form of delivery of a financial service or thesale of a financial product that is not sold in the Party’s territory;(e) ‘self-regulatory organisation’ means any non-governmental body, including anysecurities or futures exchange or market, clearing agency, other organisation or association, that exercises its own or delegated regulatory or supervisory authorityover financial service suppliers or financial institutions.a) ‘financial institution’ means any supplier which carries out one or more of theoperations defined as being financial services in Article x, where the supplier isregulated and supervised in respect of the supply of those services under the lawof the Party in whose territory this supplier is located, including branches of suchfinancial service suppliers located in the Party whose head offices are located inthe territory of the other Party.6. ‘financial institution of the other Party’ means a financial institution, including a branch, located in the territory of a Party that is controlled by persons of the other Party;(b) ‘investment’ means ‘investment’ as defined in Article X (Investment – Definitions), except that for the purposes of this Chapter, with respect to “loans”and “debt instruments” referred to in that Article:a) A loan to or debt instrument issued by a financial institution is an investmentin that financial institution only where it is treated as regulatory capital by theParty in whose territory the financial institution is located; and b) A loan granted by, or debt instrument owned by a financial institution other than a loan to or debt instrument of a financial institution referred to insubparagraph (a), is not an investment.For greater certainty, the provisions of Chapter X (Investment) apply to a loan or debt instrument to the extent that it is not covered in this Chapter. A loan granted by or debt instrument owned by a cross-border financial service supplier, other


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than a loan to or debt instrument issued by a financial institution, is an investmentfor the purposes of Chapter X (Investment) if such loan or debt instrument meetsthe criteria for investments set out in Article X (Investment-Definitions).7. ‘investor of a Party’ means “investor of a Party” as defined in Article X (Investment – Definitions);(x) ‘person of a Party’ means “person of a Party” as defined in Article X (InitialProvisions and General Definitions – Definitions of General Application) and, for greater certainty, does not include a branch of an enterprise of a non-Party.

ARTICLE 3: NATIONAL TREATMENT

1. Article X (Investment - National Treatment) is hereby incorporated into and made part of this Chapter and applies to treatment of financial institutions and investors of the other Party and their investments in financial institutions.2. The treatment accorded by a Party to its own investors and investments of its owninvestors under paragraphs 1 and 2 of Article X (Investment - National Treatment)means treatment accorded to its own financial institutions and investments of its owninvestors in financial institutions.

ARTICLE 4: MOST-FAVOURED-NATION TREATMENT

1. Article X (Investment – Most-Favoured-Nation Treatment) is hereby incorporated intoand made part of this Chapter and applies to treatment of financial institutions, investorsof the other Party and their investments in financial institutions.2. The treatment accorded by a Party to investors of a non-Party and investments of investors of a non-Party under paragraphs 1 and 2 of Article X (Investment – Most-Favoured-Nation Treatment) means treatment accorded to financial institutions of a non-Party and investments of investors of a non-Party in financial institutions..

ARTICLE 5: RECOGNITION OF PRUDENTIAL MEASURES

1. A Party may recognise prudential measures of a non-Party in the application of measurescovered by this Chapter. Such recognition may be:a. Accorded unilaterally. b. Achieved through harmonisation or other means; or c. Based upon an agreement or arrangement with the non-Party.4. A Party according recognition of prudential measures shall provide adequate opportunityto the other Party to demonstrate that circumstances exist in which there are or will beequivalent regulation, oversight, implementation of regulation and, if appropriate, procedures concerning the sharing of information between the Parties.


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5. If a Party accords recognition of prudential measures under subparagraph 1(c) and thecircumstances in paragraph 2 exist, the Party shall provide adequate opportunity to theother Party to negotiate accession to the agreement or arrangement or to negotiate acomparable agreement or arrangement.

ARTICLE 6: MARKET ACCESS

(l) Neither Party shall adopt or maintain, with respect to financial institutions of the other Party or investors of the other Party seeking to establish such institutions, either on the basis of its entire territory or on the basis of the territory of a national, provincial,territorial, regional, or local level of government, measures that:(a) impose limitations on:(i) the number of financial institutions whether in the form of numerical quotas,monopolies, exclusive service suppliers or the requirement of an economic needstest;(ii) the total value of financial service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;(iii) the total number of financial service operations or the total quantity of financial services output expressed in terms of designated numerical units in theform of quotas or the requirement of an economic needs test;(iv) the participation of foreign capital in terms of maximum percentage limit onforeign shareholding in financial institutions or the total value of individual or aggregate foreign investment in financial institutions;(v) the total number of natural persons that may be employed in a particular financial services sector or that a financial institution may employ and who arenecessary for, and directly related to, the performance of a specific financialservice in the form of numerical quotas or the requirement of an economic needstest.(b) restrict or require specific types of legal entity or joint venture through which afinancial institution may perform an economic activity.(m)Paragraph 2 of Article X (Investment – Market Access) is hereby incorporated into andmade part of this Article and applies to the measures to which this Chapter applies(n) For greater certainty, a Party may impose terms, conditions and procedures for theauthorisation of the establishment and expansion of a commercial presence in so far as


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they do not circumvent the Party's obligation under paragraph 1 and they are consistentwith the other obligations of the Chapter/Annex/Agreement.(o) For greater certainty, nothing in this Article shall be construed to prevent a Party fromrequiring financial institutions to supply certain financial services through separate legalentities where under the laws of the Party the range of financial services supplied by thefinancial institution may not be supplied through a single entity.

ARTICLE 7: CROSS-BORDER SUPPLY OF FINANCIAL SERVICES

1. Article X (Cross-Border Trade in Services – National Treatment), Article X (Cross-Border Trade in Services -Market Access) and Article X (Cross-Border Trade in Services – Formal Requirements) are hereby incorporated into and made part of this Chapter andapply to treatment of cross-border financial service suppliers supplying the financialservices specified in Annex X-7.

Note to draft: The Parties' respective cross-border commitments need to be housed in Annex X-7 to this chapter

2. The treatment accorded by a Party to its own service suppliers and services under paragraph 2 of Article X (Cross-Border Trade in Services – National Treatment) meanstreatment accorded to its own financial service suppliers and financial services.3. The measures which shall not be adopted or maintained by a Party with respect to servicesuppliers and services of the other Party under Article X (Cross-Border Trade in Services – Market Access) means measures relating to cross-border financial service suppliers of the other Party supplying financial services.4. Article (Cross-Border Trade in Services – Most-Favoured-Nation Treatment) is herebyincorporated into and made part of this Chapter and applies to treatment of cross-border financial service suppliers of the other Party.5. The treatment accorded by a Party to service suppliers and services of a non-Party under Article X (Cross-Border Trade in Services – Most-Favoured-Nation Treatment) meanstreatment accorded to financial service suppliers of a non-Party and financial services of a non-Party.6. Each Party shall permit persons located in its territory, and its nationals wherever located,to purchase financial services from cross-border financial service suppliers of the other Party located in the territory of the other Party. This obligation does not require a Party to permit such suppliers to do business or solicit in its territory. Each Party may define


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“doing business” and “solicitation” for the purposes of this Article, as long as suchdefinitions are not inconsistent with the obligation of paragraph 1.7. For the financial services specified in Annex X, each Party shall permit a cross-border financial service supplier of the other Party, on request or notification to the relevantregulator, where required, to supply a financial service through any new form of delivery,or to sell a financial product that is not sold in the Party’s territory where the first Partywould permit its own financial service suppliers to supply such services or productsunder its domestic law in like situations.

ARTICLE 8: SENIOR MANAGEMENT AND BOARDS OF DIRECTOR

Neither Party may require that a financial institution of the other Party appoint to senior management or board of director positions, natural persons of any particular nationality.

ARTICLE X: PERFORMANCE REQUIREMENTS

1. The Parties shall negotiate disciplines on Performance Requirements such as thosecontained in Article X (Investment – Performance Requirements) with respect toinvestments in financial institutions.2. If, after 3 years of entry into force of this Agreement, the Parties have not agreed to suchdisciplines, upon request of either Party, Article X (Performance Requirements) of Chapter X (Investment) shall be incorporated into and made part of the Chapter onFinancial Services, and shall apply to investments in financial institutions. For this purpose, “investment” in Article X (Performance Requirements) means “investment in afinancial institution in its territory”.3. Within 180 days following agreement by the Parties on the performance requirementdisciplines pursuant to paragraph 1, or of a Party’s request for incorporation of Article X(Performance Requirements) of Chapter X (Investment) into this Chapter pursuant to paragraph 2, as the case may be, the Parties may amend their Schedules as required. Anyamendments shall be limited to the listing of reservations for existing measures non-conforming with the Performance Requirements obligation of the Financial ServicesChapter, for Canada, in Section A of its Schedule to Annex III (Financial ServicesAnnex) and for the EU in its Schedule to Annex I. Article 9.1 shall apply to suchmeasures with respect to the performance requirement disciplines negotiated pursuant to paragraph 1, or Article X (Investment – Performance Requirements) as incorporated intothis Chapter pursuant to paragraph 2, as the case may be.


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ARTICLE 9: NON-CONFORMING MEASURES



Articles X (National Treatment), X (Most-Favoured Nation Treatment), X (MarketAccess), [X (Senior Management and Boards of Directors), do not apply to:



Any existing non-conforming measure that is maintained by a Party at the levelof:



the European Union, as set out in its Schedule to Annex I;



a national government, as set out by Canada in Section A of its Scheduleto Annex III (Financial Services Annex) or the EU in its Schedule toAnnex I;



a provincial, territorial, or regional government, as set out by Canada inSection A of its Schedule to Annex III (Financial Services Annex) or theEU in its Schedule to Annex I; or



a local government.



The continuation or prompt renewal of any non-conforming measure referred toin sub-paragraph (a); or



An amendment to any non-conforming measures referred to in subparagraph (a)to the extent that the amendment does not decrease the conformity of the measure,as it existed immediately before the amendment, with Articles X (NationalTreatment), X (Most-Favoured Nation Treatment), X (Market Access), and X(Senior Management and Boards of Directors).



Article X (Cross-Border Supply of Financial Services) does not apply to:



Any existing non-conforming measure that is maintained by a Party at the levelof:



the European Union, as set out in its Schedule to Annex 1;



a national government, as set out by Canada in Section A of its Scheduleto Annex III (Financial Services Annex) or the EU in its Schedule toAnnex I;



a provincial, territorial, or regional government, as set out by Canada inSection A of its Schedule to Annex III (Financial Services Annex) or theEU in its Schedule to Annex I; or



a local government.



The continuation or prompt renewal of any non-conforming measure referred toin subparagraph (a); or



An amendment to any non-conforming measure referred to in subparagraph (a) tothe extent that the amendment does not decrease the conformity of the measure, as


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it existed upon the entry into force of this Agreement, with Article X (Cross-Border Trade).]



Articles X (National Treatment), X (Most-Favoured Nation Treatment), X (MarketAccess), X (Cross-Border Trade), and X (Senior Management and Boards of Directors)do not apply to measures that Canada adopts or maintains with respect to financialservices as set out in Section B of its Schedule to Annex III (Financial Services Annex),or to measures that the EU adopts or maintains with respect to financial services as setout in its Schedule to Annex II.



Where a Party has set out a reservation to Article X (Investment – National Treatment), X(Investment – Most-Favoured-Nation Treatment), X (Investment – Market Access), X(Investment – Performance Requirements), X (Investment – Senior Management andBoards of Directors), X (Cross-Border Trade in Services – National Treatment), X(Cross-Border Trade in Services – Market Access) or X (Cross-Border Trade in Services – Most-Favoured-Nation Treatment) in its Schedule to Annex I or II, the reservation alsoconstitutes a reservation to Articles X (National Treatment), X (Most-Favoured-NationTreatment), X (Market Access), , X (Cross-Border Trade in Financial Services), X(Senior Management and Boards of Directors), or any disciplines on performancerequirements negotiated pursuant to Article X.1 (Performance Requirements) or incorporated into this Chapter pursuant to Article X.2 (Performance Requirements), asthe case may be, to the extent that the measure, sector, sub-sector or activity set out in thereservation is covered by this Chapter.



Without prejudice to Article X.11 (Investment - Expropriation) and Article X.9(Investment -Treatment of Investors and Covered Investments), no Party may adopt anymeasure or series of measures after the date of entry into force of this Agreement andcovered by Section B of Canada's Schedule to Annex III (Financial Services Annex), or by the Schedule to Annex II of the EU that require, directly or indirectly, an investor of the other Party, by reason of nationality, to sell or otherwise dispose of an investmentexisting at the time the measure or series of measures became effective.



In respect of intellectual property rights, a Party may derogate from Article X.6 (NationalTreatment), Article X.7 (Most-Favoured-Nation Treatment) and any disciplines ontechnology transfer in relation to performance requirements negotiated pursuant toArticle X.1 (Performance Requirements) or incorporated into this Chapter pursuant toArticle X.2 (Performance Requirements) as the case may be, where permitted by theTRIPS Agreement, including any amendments to the TRIPS Agreement in force for bothParties, and waivers to the TRIPS Agreement adopted pursuant to Article IX of the WTOAgreement.



Articles X (National Treatment), X (Most-Favoured-Nation Treatment), X.(MarketAccess) and X (Senior Management and Board of Directors) do not apply to:(a) procurement by a Party for goods and services purchased for governmental purposesand not with a view to commercial resale or with a view to use in the supply of goods and


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services for commercial sale, whether or not that procurement is "covered procurement"with the meaning of Article II of (Chapter XX – Public procurement); or (b) subsidies, or government support relating to trade in services, provided by a Party. .

ARTICLE 10: EFFECTIVE AND TRANSPARENT REGULATION

1. Each Party shall ensure that all measures of general application to which this Chapter applies are administered in a reasonable, objective and impartial manner.2. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application respecting any matter covered by this Chapter are promptly publishedor made available in such a manner as to enable interested persons and the other Party to become acquainted with them. To the extent possible, each Party shall:(a) publish in advance any such measure that it proposes to adopt;(b) provide interested persons and the other Party a reasonable opportunity tocomment on such proposed measures

;

and(c) allow reasonable time between their final publication and effective dateand these requirements shall replace those set out in Article X (Transparency – Publication).3. Each Party shall maintain or establish appropriate mechanisms that will respond within areasonable timeframe to inquiries from interested persons regarding measures of generalapplication covered by this Chapter.4. A regulatory authority shall make an administrative decision on a completed applicationof an investor in a financial institution, a cross-border financial service supplier or afinancial institution of the other Party relating to the supply of a financial service within areasonable period which is justified by the complexity of the application and the normaltimeframes established for the processing of the application and shall promptly notify theapplicant of the decision. For Canada, such reasonable period shall be 120 days. Anapplication shall not be considered complete until all relevant hearings are held and allnecessary information is received. Where it is not practicable for a decision to be madewithin a reasonable period, the regulatory authority shall promptly notify the applicantand shall endeavour to make the decision as soon as possible.


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ARTICLE 11: SELF-REGULATORY ORGANISATIONS

If a Party requires a financial institution or a cross-border financial service supplier of theother Party to be a member of, participate in or have access to a self-regulatoryorganization to provide a financial service in or into the territory of that Party, or grants privileges or advantages when providing financial services through such self-regulatoryorganizations, then the requiring Party shall ensure that the self-regulatory organizationobserves the obligations of this Chapter.

ARTICLE 12: PAYMENT AND CLEARING SYSTEMS

Under terms and conditions that accord national treatment, each Party shall grant tofinancial service suppliers of the other Party established in its territory access to paymentand clearing systems operated by a Party or by an entity pursuant to governmentalauthority delegated to it by a Party, as well as to official funding and refinancing facilitiesavailable in the normal course of ordinary business. This paragraph is not intended toconfer access to a Party’s lender of last resort facilities.

ARTICLE 13: NEW FINANCIAL SERVICES

1. Each Party shall permit a financial institution of the other Party, on request or notificationto the relevant regulator, where required, to supply any new financial service that the firstParty would permit its own financial institutions to supply under its domestic law in likecircumstances.2. A Party may determine the institutional and juridical form through which the service may be supplied and may require authorisation for the provision of the service. Where suchauthorisation is required, a decision shall be made within a reasonable time and theauthorisation may only be refused for prudential reasons.3. This Article does not prevent a financial institution of a Party from applying to the other Party to consider authorising the supply of a financial service that is not supplied withineither Party’s territory. That application is subject to the domestic law of the Partyreceiving the application and is not subject to the obligations of this Article.

ARTICLE 14: TRANSFERS AND PROCESSING OF INFORMATION

1. Each Party shall permit a financial institution or a cross-border financial service supplier of the other Party to transfer information in electronic or other form, into and out of itsterritory, for data processing where such processing is required in its ordinary course of business.


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2. Each Party shall maintain adequate safeguards to protect privacy, in particular withregard to the transfer of personal information. Where the provision and transfer of financial information and financial data processing involves personal information, thetreatment of such personal information shall be subject to the legislation governing the protection of personal information of the territory of the Party where the transfer hasoriginated.

ARTICLE 15: PRUDENTIAL CARVE-OUT

1. Nothing in this Agreement shall prevent a Party from adopting or maintaining reasonablemeasures for prudential reasons, including:(a) the protection of investors, depositors, policy-holders or persons to whom afiduciary duty is owed by a Financial Institution, or cross-border financial servicesupplier or financial service supplier;(b) the maintenance of the safety, soundness, integrity or financial responsibility of aFinancial Institution, cross-border financial service supplier or financial servicesupplier; or (c) ensuring the integrity and stability of a Party's financial system.

.

2. Without prejudice to other means of prudential regulation of cross-border trade infinancial services, a Party may require the registration of cross-border financial servicesuppliers of the other Party and of financial instruments.3. Subject to Article X (National Treatment) and Article Y (Most Favoured NationTreatment), a Party may, for prudential reasons, prohibit a particular financial service or activity. Such a prohibition may not apply to all financial services or to a completefinancial services sub-sector, such as banking.

ARTICLE 16: SPECIFIC EXCEPTIONS

In order to make the Financial Services Chapter subject to GATS exceptions, a reference must bemade to Chapter X (Financial Services) in Article X.02.2 (Exceptions – General Exceptions) provision. .

(a) Nothing in this Agreement applies to measures taken by any public entity in pursuit of monetary or exchange rate policies. This paragraph shall not affect a Party’s obligationsunder Article X (Investment – Performance Requirements) with respect to measurescovered by Chapter X (Investment) or Article X (Investment – Transfers).(b) Nothing in this Agreement shall be construed as requiring a Party to furnish or allowaccess to information relating to the affairs and accounts of individual consumers, cross- border financial services suppliers, financial institutions or any confidential informationwhich, if disclosed, would interfere with specific regulatory, supervisory or lawenforcement matters, or otherwise be contrary to public interest or prejudice legitimatecommercial interests of particular enterprises.


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4. The individuals included on the list shall have expertise or experience in financialservices law or regulation or the practice thereof, which may include the regulation of financial service suppliers. The individuals acting as chairpersons must also haveexperience as a counsel, panellist or arbitrator in dispute settlement proceedings.Arbitrators shall be independent, serve in their individual capacities and not takeinstructions from any organisation or government, and shall comply with the Code of Conduct annexed to the Dispute Settlement chapter.5. If a panel finds that a measure to be inconsistent with this Agreement and the measureaffects:(a) the financial services sector and any other sector, the complaining Party maysuspend benefits in the financial services sector that have an effect equivalent tothe effect of the measure in the Party’s financial services sector; or (b) only a sector other than the financial services sector, the complaining Partymay not suspend benefits in the financial services sector.

ARTICLE 20: INVESTMENT DISPUTES IN FINANCIAL SERVICES

1. The provisions of [Investor-to-State Dispute Settlement] apply, as modified by thisArticle and Annex XXX, to:a. investment disputes pertaining to measures to which this Chapter applies in whichan investor claims that a Party has breached Articles X.12 (Investment – Transfers), X.11 (Investment – Expropriation), X.10 (Investment - Compensationfor Losses), X.9 (Investment – Treatment of Investors and of CoveredInvestments), X.15 (Investment – Denial of Benefits), X.3 (Financial Services - National Treatment) or X.4 (Financial Services - Most-Favoured NationTreatment); or b. investment disputes commenced pursuant to [Investor State Dispute Settlement]in which Article 15.1 has been invoked.2. Unless the disputing parties agree otherwise, in the case of an investment dispute under sub-paragraph 1(a), or where the respondent invokes Article 15.1 within 60 days of thesubmission of a claim to arbitration under Article X-8 [Submission of a Claim toArbitration], the Tribunal shall be constituted from the list established under Article X[Financial Services – Dispute Settlement]. Where the respondent invokes Article 15.1within 60 days of submission of a claim, with respect to an investment dispute other thanunder sub-paragraph 1(a), the time period applicable to the constitution of the Tribunalunder Article X-10 [Constitution of the Tribunal] shall commence on the date therespondent invokes Article 15.1. In the event that the disputing parties are unable toagree on the composition of the Tribunal within the time frame laid down in Article X-10(Constitution of the Tribunal) either disputing party may request the Secretary-General of


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(b) advisory and other auxiliary financial services, and credit reference and analysis,excluding intermediation, relating to banking and other financial services, as described insubparagraph (B12) of the definition of financial service.

Portfolio Management Services

3. The provision of the following services to a collective investment scheme located in itsterritory:(i) investment advice; and(ii) portfolio management services, excluding:A. custodial services,B. trustee services,C. execution services.4. For the purposes of this commitment, portfolio management means managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basiswhere such portfolios include one or more financial instruments.5 A collective investment scheme means investment funds or fund management companiesregulated or registered under relevant securities laws and regulations. Notwithstanding paragraph 2(c), Canada may require a collective investment scheme located in Canada to retainultimate responsibility for the management of the collective investment scheme or the funds thatit manages.6 Non-conforming measures set out by Canada in Annex XX of its Schedule to Annex III(Financial Services Annex) do not apply to paragraphs 3, 4 and 5 (Portfolio Management) above.


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Schedule of the European Union (applicable to all EU Member States unless otherwiseindicated)Insurance and Insurance-Related Services

1. With the exception of

CY, EE

,

LV

,

LT

,

MT

and

PL

Article 7(1) applies to the cross-border supply of Financial Services, as defined in Article 2(x) of Chapter X Financial Services, withrespect to:(a) direct insurance services (including co-insurance) and direct insurance intermediationfor the insurance of risks relating to:(i) maritime transport and commercial aviation and space launching and freight(including satellites), with such insurance to cover any or all of the following: thegoods being transported, the vehicle transporting the goods, and any liabilityderiving therefrom; and(ii) goods in international transit.(b) Reinsurance and retrocession,(c) Services auxiliary to insurance.2. For

CY,

Article 7(1) applies to the cross-border supply of Financial Services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) direct insurance services (including co-insurance) for the insurance of risks relatingto:(i) maritime transport and commercial aviation and space launching and freight(including satellites), with such insurance to cover any or all of the following: thegoods being transported, the vehicle transporting the goods, and any liabilityderiving therefrom; and(ii) goods in international transit.(b) Insurance intermediation,(c) Reinsurance and retrocession,(d) Services auxiliary to insurance.


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3. For

EE

Article Article 7(1) applies to the cross-border supply of Financial Services, asdefined in Article 2(x) of Chapter X Financial Services, with respect to:(a) Direct insurance (including co-insurance),(b) Reinsurance and retrocession,(c) Insurance intermediation,(d) Services auxiliary to insurance.4. For

LV, LT

Article 7(1) applies to the cross-border supply of Financial Services, as definedin Article 2(x) of Chapter X Financial Services, with respect to:(a) direct insurance services (including co-insurance) for the insurance of risks relatingto:(j) maritime transport and commercial aviation and space launching and freight(including satellites), with such insurance to cover any or all of the following: thegoods being transported, the vehicle transporting the goods, and any liabilityderiving therefrom; and(ii) goods in international transit.(b) Reinsurance and retrocession,(c) Services auxiliary to insurance.5. For

MT,

Article 7(1) applies to the cross-border supply of Financial Services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) direct insurance services (including co-insurance) for the insurance of risks relatingto:(j) maritime transport and commercial aviation and space launching and freight(including satellites), with such insurance to cover any or all of the following: thegoods being transported, the vehicle transporting the goods, and any liabilityderiving therefrom; and(ii) goods in international transit.(b) Reinsurance and retrocession,(c) Services auxiliary to insurance.


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6. For

EE

Article Article 7(1) applies to the cross-border supply of Financial Services, asdefined in Article 2(x) of Chapter X Financial Services, with respect to:(a) Direct insurance (including co-insurance),(b) Reinsurance and retrocession,(c) Insurance intermediation,(d) Services auxiliary to insurance.7.8. For

PL

Article 7(1) applies to the cross-border supply of Financial Services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) direct insurance services (including co-insurance) for the insurance of risks relating togoods in international trade.(b) Reinsurance and retrocession of risks relating to goods in international trade.,

Banking and Other Financial Services (excluding insurance and insurance-related services)

9. With the exception of

BE, CY, EE

,

LV, LT

,

MT, SI and RO

Article 7(1) applies to thecross-border supply of financial services, as defined in Article 2(x) of Chapter X FinancialServices, with respect to:(a) the provision and transfer of financial information, and financial data processing andrelated software by suppliers of other financial services;(b) advisory and other auxiliary financial services on all the activities listed in paragraph(a) [banking and other financial services] of Article [ ] of ], including creditreference and analysis, investment and portfolio research and advice, advice onacquisitions and on corporate restructuring and strategy, but excludingintermediation.10. For

BE

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) the provision and transfer of financial information, and financial data processing andrelated software by suppliers of other financial services;


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11. For

CY

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) the trading for own account or for the account of customers, whether on an exchangeor an over the counter market or otherwise of transferrable securities;(b) the provision and transfer of financial information, and financial data processing andrelated software by suppliers of other financial services;(c) advisory and other auxiliary financial services, excluding intermediation on all theactivities listed in paragraph (a) [banking and other financial services] of Article [] of ], including credit reference and analysis, investment and portfolioresearch and advice, advice on acquisitions and on corporate restructuring andstrategy.12. For

EE, LT

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) acceptance of deposits;(b) lending of all types;(c) financial leasing;(d) all payment and money transmission services;(e) guarantees and commitments;(f) trading for own account or for account of customers, whether on an exchange, in anover-the-counter market;(g) participation in issues of all kinds of securities, including underwriting and placementas agent (whether publicly or privately) and provision of services related to suchissues;(f) money broking;(g) asset management, such as cash or portfolio management, all forms of collectiveinvestment management, , custodial, depository and trust services;(h) settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;


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(i) provision and transfer of financial information, and financial data processing andrelated software;(j) advisory, intermediation and other auxiliary financial services on all the activitieslisted in subparagraphs (1) through (11), including credit reference and analysis,investment and portfolio research and advice, advice on acquisitions and on corporaterestructuring and strategy.13. For

LV

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) participation in issues of all kinds of securities, including underwriting and placementas agent (whether publicly or privately) and provision of services related to such issues;(b) the provision and transfer of financial information, and financial data processing andrelated software by suppliers of other financial services;(c) advisory and other auxiliary financial services on all the activities listed in paragraph(a) [banking and other financial services] of Article [ ] of ], including creditreference and analysis, investment and portfolio research and advice, advice onacquisitions and on corporate restructuring and strategy.14. For

MT

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:

(a)

the acceptance of deposits;

(b)

lending of all types;

(c)

the provision and transfer of financial information, and financial data processing andrelated software by suppliers of other financial services;

(d)

advisory and other auxiliary financial services on all the activities listed in paragraph (a) [banking and other financial services] of Article [] of ], includingcredit reference and analysis, investment and portfolio research and advice, advice onacquisitions and on corporate restructuring and strategy.15. For

RO

Article 7(1) applies to the cross-border supply of financial services, as defined inArticle 2(x) of Chapter X Financial Services, with respect to:(a) acceptance of deposits;(b) lending of all types;(c) guarantees and commitments;


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b) For the purposes of this commitment, portfolio management means managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments.Furthermore, portfolio management services shall not include:



custodial services,



trustee services,



execution services.c) For the purposes of this commitment, in the EU professional clients are those definedunder letter e) of Section I of Annex II of Directive 2004/39/EC of 21 April 2004 onmarkets in financial instruments


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FS – Annex Prudential Carve-out

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ANNEX XX OF THE FINANCIAL SERVICES CHAPTER Understanding between Canada and the EUGuidance on the application of Article 15.1 (Prudential Carve-out) and Article 20(Investment Disputes in Financial Services)

The Parties recognize that prudential measures strengthen domestic financial systems, encouragesound efficient and robust institutions, markets, and infrastructure; and promote internationalfinancial stability by facilitating better-informed lending and investment decisions, improvingmarket integrity, and reducing the risks of financial distress and contagion.As a result, the Parties have agreed to a prudential carve-out in Article 15.1 allowing the Partiesto take measures for prudential reasons, and to establish Financial Services Committee (Article17) to act as a filter in investment disputes in financial services under Article 20.

Process:

1. The Financial Services Committee, in its role as a filter in investment disputes under Article20, shall decide whether and, if so, to what extent the prudential carve-out is a valid defenceto the claim.2. The Parties undertake to act in good faith. Each Party shall present its position to theFinancial Services Committee within 60 days of the referral to the Financial ServicesCommittee.3. Where the non-disputing Party notifies the Financial Services Committee within the 60 day period in paragraph (2) that it has launched its internal determination process on this matter,the timeframe in paragraph (2) is suspended until that Party notifies the Financial ServicesCommittee of its position. A suspension beyond 6 months will be considered as a breach of the good faith undertaking.4. Where the Respondent does not provide its position to the Financial Services Committeewithin the time period referred to in paragraph (2), the suspension of the time periods or proceedings referred to in paragraph 4 of Article 20 shall no longer apply and the investor may proceed with its claim.5. Where the Financial Services Committee is unable to agree on a joint determination within60 days in relation to a specific investor-to-state dispute concerning a prudential measure, theFinancial Services Committee shall refer the matter to the CETA Trade Committee

38

. This period of 60 days shall commence from the moment the Financial Services Committeereceives the positions of the Parties pursuant to paragraph (2).6. The joint determination of the Financial Services Committee or the CETA Trade Committeeshall be binding on the Tribunal only in the case in question. The joint determination shall

38

Each Party shall ensure that its representation in the CETA Trade Commission for this purposeincludes financial services authorities


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not constitute a binding precedent for the Parties with respect to definition and application of the prudential carve-out or other terms of this Agreement.7. Unless the CETA Trade Committee otherwise decides, should the CETA Trade Committeenot reach an agreement within 3 months of a referral of the matter by the Financial ServicesCommittee pursuant to paragraph (5), each Party shall make its position available to theTribunal arbitrating that particular dispute. The Tribunal shall take account of this record inreaching a decision.

39

High level principles:

The Parties agree that the application of Article 15.1 by the Parties and by tribunals should beguided by the following principles, which are not exhaustive:1. Each Party may determine its own appropriate level of prudential regulation. Specifically aParty may establish and enforce measures that provide a higher level of prudential protectionthan those set out in common international prudential commitments.2. Relevant considerations in determining whether a measure meets the requirements of Article15.1 include the extent to which a measure may be required by the urgency of the situationand the information available to the Party at the time when the measure was adopted.3. Given the highly specialized nature of prudential regulation, those applying these principlesshall defer to the highest degree possible to regulations and practices inthe Parties’ respective jurisdictions and to the decisions and factual determinations, includingrisk assessments, made by financial regulatory authorities.4. (a) Except as provided in paragraph (b), a measure is deemed to meet the requirements of Article 15.1 where it:(i) has a prudential objective; and(ii) is not so severe in light of its purpose that it is manifestly disproportionate to theattainment of its objective.(b) A measure that otherwise meets the requirements of paragraph (a) does not meet therequirements of Article 15.1 where it is a disguised restriction on foreign investment or anarbitrary or unjustifiable discrimination between investors in like situations.5. Provided that a measure is not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between investors in like situations, or a disguisedrestriction on foreign investment, that measure is deemed to meet the requirements of Article15.1 where that measure is:



In line with our common international prudential commitments; or


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

In pursuance of the resolution of a financial institution that is no longer viable or likely to be no longer viable;



In pursuance of the recovery of a financial institution or the management of a financialinstitution under stress; or



In pursuance of the preservation or the restoration of financial stability, in response to asystem-wide financial crisis.

Periodic Review

The Financial Services Committee may, by agreement of both Parties, amend this Understandingat any time. The Financial Services Committee should review this Understanding at least everytwo years.In this context, the Financial Services Committee may develop a common understanding on theapplication of Article 15.1 (Prudential Carve-out), on the basis of the dialogue and discussionsheld in the Committee in relation to specific disputes and mindful of common international prudential commitments.


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Understanding on the dialogue on the regulation of the financial services sector

The Parties reaffirm their commitment to strengthening financial stability. The dialogue on theregulation of the financial services sector within the Financial Services Committee [established by Article X…] shall be based on the principles and prudential standards agreed at multilaterallevel. The Parties undertake to focus the discussion on issues with cross-border impact, such ascross-border trade in securities (including the possibility of taking further commitments on portfolio management), the respective frameworks for covered bonds and for collateralrequirements in reinsurance, and discuss issues related to the operation of branches.


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IMTS

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16. INTERNATIONAL MARITIME TRANSPORT SERVICES

EU Canada working text on International Maritime Transport Services

[ANNEX] [CHAPTER] XYINTERNATIONAL MARITIME TRANSPORT SERVICESArticle 1: Scope

1. This [Annex] [Chapter] applies to measures adopted or maintained by a Party relating tothe supply of international maritime transport services.

40

2.

For greater certainty, measures adopted or maintained by a Party [relating to] [affecting]the supply of international maritime transport services are also subject to the provisionsof the Chapters on Cross-Border Trade in Services (CBTS) and on Investment. Chapter X(CBTS) Article X-02 (National Treatment), Article X-04 (Most-Favoured Nation) andChapter Y (Investment) Article X-# (National Treatment), and Article X-# (Most-Favoured Nation) include the obligation not to adopt or maintain measures that denyvessels engaged in international maritime transport and flying the flag of the other Party

41

, or international maritime transport service suppliers of the other Party, thetreatment accorded by that Party in like situations to its own vessels or service suppliersor those of any third country, whichever is more favourable, with regard to access to ports, the use of infrastructure and services of ports such as towage and pilotage, the useof maritime auxiliary services as well as the imposition of related fees and charges,access to customs facilities, and the assignment of berths and facilities for loading andunloading

42

.

Article 2: Obligations

1. Each Party shall permit international maritime transport service suppliers of the other Party to re-position owned/leased empty containers, not being carried as cargo against payment, between ports of that Party.2. Each Party shall permit international maritime transport service suppliers of the other Party to provide feeder services between ports of that Party.

40

Nothing in this Annex shall be interpreted to apply to fishing vessels as defined under a Party's domestic law.

41

For the purposes of this [Annex] [Chapter], for the European Union, flying the flag of a Party means flying theflag of a Member State of the European Union.

42

Paragraph 2 does not oblige a Party to require private sector terminal operators and providers of maritimeauxiliary services to accord access to and use of their services on non-discriminatory terms and conditions.Paragraph 2 does not apply to vessels or international maritime transport services suppliers that are subjectto the

Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing.


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3. Either Party may adopt or maintain cargo-sharing arrangements with third countriesconcerning international maritime transport services, including dry and liquid bulk andliner trades.4. Neither Party may adopt or maintain measures requiring that all or part of any internationalcargo be transported exclusively by vessels registered in that Party or owned or controlled by nationals of that Party

.

5. Neither Party may adopt or maintain measures that prevent international maritimetransport service suppliers of the other Party from directly contracting with providers of other transport services for the provision of door-to-door or multimodal transportoperations.

Article 3: Non-Conforming Measures

1. Article 2 (Obligations) does not apply to:a.an existing non-conforming measure that is maintained by:i. The European Union, as set out by the EU in its Schedule to Annex I,ii. The national government of a Party, as set out in its Schedule to AnnexI,iii. A provincial, territorial or regional government of a Party, as set out inits Schedule to Annex I, or iv. A local government of a Party. b. The continuation or prompt renewal of any non-conforming measure referredto in subparagraph (a); or c. An amendment to any non-conforming measure referred to in subparagraph(a) to the extent that the amendment does not decrease the conformity of themeasure, as it existed immediately before the amendment, with Article 2(Obligations).2. Article 2 (Obligations) does not apply to any measure that a Party adopts or maintainswith respect to sectors, subsectors or activities, as set out in its Schedule to AnnexII.

Article 5: Definitions

For purposes of this [Annex] [Chapter]:


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international maritime transport services

means the transport of passengers and/or cargo by sea-going vessels between a port of one Party and a port of another Party or of anon-Party, or between a port of one European Union Member State and a port of another European Union Member State, as well as direct contracting with suppliers of other transport services to ensure door-to-door or multimodal transport operations, but not thesupply of such other transport services.

door-to-door or multimodal transport operations

means the transport of cargo usingmore than one mode of transport, involving an international sea-leg, under a singletransport document.

international cargo

means cargo transported by sea-going vessels between a port of oneParty and a port of another Party or of a non-Party, or between a port of one EuropeanUnion Member State and a port of another European Union Member State.

international maritime transport service supplier

means(i) any enterprise of a Party, as defined in Article (X.01) (Initial Provisions andGeneral Definitions - Definitions of General Application), and a branch of anysuch entity; or (ii) any enterprise of a non-Party owned or controlled by nationals of a Party, if their vessels are registered in accordance with the legislation of that Party and flyingthe flag of that Party; or (iii) with the exclusion of Chapter Y (investment), a branch of an enterprise of a non-Party with substantive business operations in the territory of a Party, that isengaged in the supply of international maritime transport services.

maritime auxiliary services

means maritime cargo handling services, customs clearanceservices, container station and depot services, maritime agency services, maritime freightforwarding services, and storage and warehousing services.

maritime cargo handling services

means the performance, organization and supervisionof:(i) the loading/discharging of cargo to/from a vessel;(ii) the lashing/unlashing of cargo; and(iii) the reception/delivery and safekeeping of cargo before shipment or after discharge, by stevedoring or terminal operator companies, but does not include work performed bydock labour, when this workforce is organized independently of stevedoring or terminaloperator companies.

customs clearance services

or

customs house brokers' services

means carrying out, ona fee or contract basis, customs formalities concerning import, export or through transport


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of cargo, irrespective of whether this service is the main or secondary activity of theservice provider;

container station and depot services

means storing containers, whether in port areas or inland, stuffing/stripping/repairing containers and making them available for shipment;

maritime agency services

means representing, as an agent, within a given geographicarea, the business interests of one or more shipping lines or shipping companies, for thefollowing purposes:(i) marketing and sales of maritime transport and related services, fromquotation to invoicing, issuance of bills of lading on behalf of thecompanies, acquisition and resale of the necessary related services, preparation of documentation, and provision of business information; and(ii) acting on behalf of the companies in organizing the call of the vessel or taking control of cargo when required.

maritime freight forwarding services

means organizing and monitoring shipments on behalf of shippers, through providing such services as the arrangement of transport andrelated services, consolidation and packing of cargo, preparation of documentation and provision of business information.

feeder services

means the pre- and onward transportation of international cargo by sea,including containerized, break bulk and dry/liquid bulk cargo, between ports located in aParty. For greater certainty, in respect of Canada, feeder services may includetransportation between sea and inland waters, where inland waters means those defined inthe Customs Act.

storage and warehousing services

means storage services of frozen or refrigerated goods, bulk storage services of liquids or gases, and other storage or warehousing services.


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17. TELECOMMUNICATIONS

Telecommunications

Article X.1: Scope of Application

1. This Chapter applies to measures adopted or maintained by a Party relating totelecommunications networks or services, subject to a Party’s right to restrict the supplyof a service in accordance with its Reservations in Annexes I and II.2. This Chapter does not apply to any measure of a Party affecting the transmission by anymeans of telecommunications, including broadcast and cable distribution, of radio or television programming intended for reception by the public, but for greater certainty itwould apply to a contribution link.3. Nothing in this Chapter shall be construed to:(a) require a Party to authorize a service supplier of the other Party to establish,construct, acquire, lease, operate or supply telecommunications networks or services, other than as specifically provided in this Agreement; or (b) require a Party (or require a Party to compel any service supplier) to establish,construct, acquire, lease, operate or supply telecommunications networks or services not offered to the public generally.

Article X.2: Access to and Use of Public Telecommunications Transport Networks orServices

1. A Party shall ensure that enterprises of the other Party are accorded access to and use of public telecommunications transport networks or services on reasonable and non-discriminatory terms and conditions (including technical standards and specifications)and of a quality no less favourable than that accorded to any other enterprise.

43

Thisobligation shall be applied,

inter alia

, through paragraphs 2 through 6.2. Each Party shall ensure that enterprises of the other Party have access to and use of any public telecommunications transport network or service offered within or across its borders, including private leased circuits, and to this end shall ensure, subject to paragraphs 5 and 6, that such enterprises are permitted to:

43

non-discriminatory

means treatment no less favourable than that accorded to any other enterprise whenusing like public telecommunications transport networks or services in like situations.


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(a) purchase or lease and attach terminal or other equipment which interfaces with the public telecommunications transport network;(b) connect private leased or owned circuits with public telecommunications transportnetworks and services of that Party or with circuits leased or owned by another enterprise;(c) use operating protocols of their choice; and(d) perform switching, signaling, and processing functions.3. Each Party shall ensure that enterprises of the other Party may use publictelecommunications transport networks and services for the movement of information inits territory or across its borders, including for intra-corporate communications of suchenterprises, and for access to information contained in data bases or otherwise stored inmachine-readable form in the territory of either Party.4. Further to Article X (Exceptions - General Exceptions), and notwithstanding the paragraph 3, a Party shall take appropriate measures to protect:(a) the security and confidentiality of telecommunications services, or (b) the privacy of users of public telecommunications transport services,subject to the requirement that such measures are not applied in a manner which wouldconstitute a means of arbitrary or unjustifiable discrimination or a disguised restriction ontrade.5. Each Party shall ensure that no condition is imposed on access to and use of publictelecommunications transport networks or services other than as necessary to:(a) safeguard the public service responsibilities of suppliers of publictelecommunications transport networks or services, in particular their ability to maketheir networks or services available to the public generally;(b) protect the technical integrity of public telecommunications transport networks or services; or (c) ensure that enterprises of another Party do not supply services limited by the Party’sReservations in Annexes I and II.6. Provided that they satisfy the criteria set out in paragraph 5, conditions for access to anduse of public telecommunications transport networks or services may include:(a) restrictions on resale or shared use of such services;


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2. Each Party may determine, in accordance with its laws and regulations, those essentialfacilities required to be made available in its territory.

Article X.6: Interconnection

1. Each Party shall ensure that any major supplier in its territory provides interconnection:(a) at any technically feasible point in the network;(b) under non-discriminatory terms, conditions (including technical standards andspecifications) and rates;(c) of a quality no less favourable than that provided for the own like services of suchmajor supplier or for like services of non-affiliated service suppliers or of itssubsidiaries or other affiliates;(d) in a timely fashion, on terms, conditions (including technical standards andspecifications) and cost-oriented rates that are transparent, reasonable, havingregard to economic feasibility, and sufficiently unbundled so that a supplier neednot pay for network components or facilities that it does not require for theservices to be supplied; and(e) upon request, at points in addition to the network termination points offered to themajority of users, subject to charges that reflect the cost of construction of necessary additional facilities.2. Any supplier authorised to provide telecommunications services shall have the right tonegotiate a new interconnection agreement with other suppliers of publictelecommunications transport networks and services. Each Party shall ensure that major suppliers are required to establish a reference interconnection offer or negotiateinterconnection agreements with other suppliers of telecommunications networks andservices.3. Each Party shall ensure that suppliers of public telecommunications transport servicesthat acquire information from another such supplier during the process of negotiatinginterconnection arrangements use that information solely for the purpose for which it wassupplied and respect at all times the confidentiality of information transmitted or stored.4. Each Party shall ensure that the procedures applicable for interconnection to a major supplier shall be made publicly available.5. Each Party shall ensure that major suppliers shall make publicly available either their interconnection agreements or their reference interconnection offers where it isappropriate.


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Article X.7: Universal Service

1. Each Party has the right to define the kind of universal service obligations it wishes to maintain.2.

Each Party shall ensure that any measure on universal service that it adopts or maintainsis administered in a transparent, objective, non-discriminatory and competitively neutralmanner. Each Party shall also ensure that any universal service obligation imposed by itis not more burdensome than necessary for the kind of universal service that the Party hasdefined.

3. All suppliers should be eligible to ensure universal service. When a supplier is to be designated asthe

supplier

of a universal service, the selection shall be made through an efficient, transparentand non-discriminatory mechanism.

Article X.8: Scarce Resources

1. Each Party shall administer its procedures for the allocation and use of scarce resources,including frequencies, numbers and rights of way, in an objective, timely, transparent andnon-discriminatory manner.2. A Party’s measures allocating and assigning spectrum and managing frequencies shallnot be considered inconsistent with [Article X (Cross-Border Trade in Services – MarketAccess), as it applies to either Chapter X (Investment) or Chapter X (Cross-Border Tradein Services)].

44

Accordingly, each Party retains the right to establish and apply itsspectrum and frequency management policies that may limit the number of suppliers of public telecommunications transport services. Each Party also retains the right to allocatefrequency bands taking into account present and future needs.3. The current state of allocated frequency bands shall be made publicly available, butdetailed identification of frequencies allocated for specific government uses is notrequired.

Article X.9: Regulatory Authority

1. Each Party shall ensure that its regulatory authority is legally distinct and functionallyindependent from any supplier of telecommunications networks, services or equipment,including where a Party retains ownership or control of a supplier of telecommunicationsnetwork or service.2. Each Party shall ensure that its regulatory authorities’ decisions and procedures areimpartial with respect to all market participants and are administered in a transparent andtimely manner.

44

To be later specified, pending discussion on architecture of the agreement.


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3. Each Party shall ensure that its regulatory authorities are sufficiently empowered toregulate the sector, including having the power to:(a) require suppliers of telecommunications networks or services submit anyinformation the regulator considers necessary for the administration of itsresponsibilities; and(b) enforce their decisions relating to the obligations set out in articles X.2 and X.4through appropriate sanctions. Such sanctions may include financial penalties,corrective orders or the suspension or revocation of licences.

Article X.10: Resolution of Telecommunication Disputes

Recourse to Regulatory Authorities

1. Further to Article X (Transparency - Administrative Proceedings) and Article X(Transparency – Review and Appeal), each Party shall ensure the following:(a) enterprises have timely recourse to its regulatory authority to resolve disputes with suppliersof public telecommunications transport networks or services regarding the matters covered inArticles [X.2, X.4, X.5 and X. 6 – access to and use, competitive safeguards, access toessential facilities, and interconnection] and that, under the domestic law of the Party, arewithin the regulatory authority’s jurisdiction. This shall include, as appropriate, the issuanceof a binding decision by the regulatory authority to resolve the dispute within a reasonable period of time.(b) suppliers of telecommunications networks or services requesting access to essential facilitiesor interconnection with a major supplier in the Party’s territory, have recourse to a regulatoryauthority to resolve disputes regarding the appropriate terms, conditions and rates for interconnection or access with such a major supplier within a reasonable and publiclyspecified period of time.

Appeal and Review

2. Each Party shall ensure that an enterprise whose interests are adversely affected by adetermination or decision of a regulatory authority may obtain review of thedetermination or decision by an impartial and independent judicial, quasi-judicial or administrative authority, as provided in the domestic law of the Party. Written reasonsfor the determination or decision of the judicial, quasi-judicial or administrative authorityshall be given. Each Party shall ensure that such determinations or decisions, subject toappeal or further review, are implemented by the regulatory authority.


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3. An application for judicial review shall not constitute grounds for non-compliance withthe determination or decision of the regulatory authority unless the relevant judicialauthority stays such determination or decision.

Article X.11: Transparency

1. Further to Articles X (Transparency - Publication) and X (Transparency - Notificationand Provision of Information), and in addition to the other provisions in this Chapter relating to the publication of information, each Party shall make publicly available:(i) the responsibilities of a regulatory authority in an easily accessible and clear form,in particular where those responsibilities are given to more than one body;(ii) its measures relating to public telecommunications transport network or services,including:(A) regulations of its regulatory authority, together with the basis for suchregulations;(B)measures relating to tariffs and other terms and conditions of service;(C)measures relating to specifications of technical interfaces;(D)measures relating to conditions for attaching terminal or other equipmentto the public telecommunications transport network;(E) measures relating to notification, permit, registration, or licensingrequirements, if any; and(ii) information on bodies responsible for preparing, amending and adoptingstandards-related measures.

Article X.12: Forbearance

The Parties recognize the importance of a competitive market to achieve legitimate public policyobjectives for telecommunications services. To this end, and to the extent provided in itsdomestic law, each Party may refrain from applying a regulation to a telecommunications servicewhen, following analysis of the market, it is determined that effective competition is achieved.

[Article X.13: Relation to Other Chapters

In the event of any inconsistency between this Chapter and another Chapter in this Agreement,this Chapter shall prevail to the extent of the inconsistency.]CAN


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ARTICLE X.14: Number Portability

Each Party shall ensure that suppliers of public telecommunications transport services in its territory provide number portability on reasonable terms and conditions.

Article X.15: Definitions

For the purpose of this Chapter:

contribution link

means a link for the transmission of sound or television broadcasting signalsto a programme production centre.

cost-oriented

means based on cost and may involve different cost methodologies for differentfacilities or services;

enterprise

means an “enterprise” as defined in Article 3 (Investment– Definitions);

essential facilities

means facilities of a public telecommunications transport network or servicethat:(a) are exclusively or predominantly provided by a single or a limited number of suppliers; and(b) cannot feasibly be economically or technically substituted in order to provide aservice;

interconnection

means linking suppliers providing public telecommunications transportnetworks or services in order to allow the users of one supplier to communicate with users of another supplier and to access services provided by another supplier ;

intra-corporate communications

means telecommunications through which a companycommunicates within the company or with or among its subsidiaries, branches and, subject to aParty’s domestic laws and regulations, affiliates. For these purposes, “subsidiaries”, “branches”and, where applicable, “affiliates” are as defined by each Party. “Intra-corporatecommunications” excludes commercial or non-commercial services that are supplied tocompanies that are not related subsidiaries, branches or affiliates or that are offered to customersor potential customers;

leased circuits

means telecommunications facilities between two or more designated points thatare set aside for the dedicated use of or availability to a particular customer or other users of thecustomer’s choosing;


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major supplier

means a supplier which has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for publictelecommunications transport networks or services as a result of :(a) control over essential facilities; or (b) use of its position in the market;

network termination point

means the physical point at which a user is provided with access toa public communications network.

public telecommunications transport network

means the public telecommunicationsinfrastructure which permits telecommunications between and among defined network termination points;

public telecommunications transport service

means any telecommunications transport servicerequired, explicitly or in effect, by a Party to be offered to the public generally involving thereal-time transmission of customer-supplied information between two or more points withoutany end-to-end change in the form or content of the customer's information. Such services mayinclude

, inter alia

,

voice telephone services, packet-switched data transmission

services, circuit-switched data transmission services, telex services, telegraph services, facsimile services, privateleased circuit services and mobile and personal communications services and systems.

regulatory authority

means the body responsible for the regulation of telecommunications;

service supplier

means a person of a Party that seeks to supply or supplies a service, including asupplier of telecommunications networks or services;

telecommunications services

means all services consisting of the transmission and reception of signals by any electro-magnetic means and do not cover the economic activity consisting of the provision of content by means of telecommunications;

user

is an enterprise or natural person using or requesting a publicly availabletelecommunications service.

number portability

means the ability of end-users of public telecommunications transport services toretain, at the same location, the same telephone numbers without impairment of quality, reliability or convenience when switching between suppliers of like public telecommunications transport services.


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18. ELECTRONIC COMMERCECHAPTER XELECTRONIC COMMERCEArticle X-01: Objective, Scope and Coverage

1. The Parties recognise that electronic commerce increases economic growth and tradeopportunities in many sectors and confirm the applicability of WTO rules to electroniccommerce. They agree to promote the development of electronic commerce between them, in particular by co-operating on the issues raised by electronic commerce under the provisions of this [

Chapter/Sub-section

].2. The Parties confirm that this Agreement applies to electronic commerce. In the event of an inconsistency between this [

Chapter/Sub-section

] and another [

Chapter/Sub-section

] of thisAgreement, the other [

Chapter/Sub-section

] shall prevail to the extent of the inconsistency.3. Nothing in this [

Chapter/Sub-section

] imposes obligations on a Party to allow a deliverytransmitted by electronic means except in accordance with the obligations of that Party under theother [

Chapter/Sub-section

] of this Agreement.4. The General Exceptions set out in Art.X.02 in Chapter X (Exceptions) shall apply to thisChapter.

Article X-02: Customs Duties on Electronic Deliveries

1. The Parties agree that a delivery transmitted by electronic means shall not be subject tocustoms duties, fees or charges.2. For greater clarity, paragraph 1 does not prevent a Party from imposing internal taxes or other internal charges on a delivery transmitted by electronic means, provided that such taxes or charges are imposed in a manner consistent with the other [

Chapter/Sub-section

] of thisAgreement.

Article X-03: Trust and Confidence in Electronic Commerce

Each Party should adopt or maintain laws, regulations or administrative measures for the protection of personal information of users engaged in electronic commerce and, when doing so,shall take into due consideration international standards for data protection of relevantinternational organisations of which both Parties are a member.


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Article X-04: General Provisions

Considering the potential of electronic commerce as a social and economic developmenttool, the Parties recognize the importance of:(a) clarity, transparency and predictability in their domestic regulatory frameworks infacilitating, to the maximum extent possible, the development of electroniccommerce;(b) interoperability, innovation and competition in facilitating electronic commerce;(c) facilitating the use of electronic commerce by small and medium sizedenterprises.

Article X-05: Dialogue on E-Commerce

1. Recognising the global nature of electronic commerce, the Parties agree to maintain adialogue on issues raised by electronic commerce, which will

inter alia

address:(a) the recognition of certificates of electronic signatures issued to the public and thefacilitation of cross-border certification services,(b) the liability of intermediary service providers with respect to the transmission, or storage of information,(c) the treatment of unsolicited electronic commercial communications,(d) the protection of personal information and the protection of consumers and businesses from fraudulent and deceptive commercial practices in the sphere of electronic commerce.2. The dialogue in Paragraph 1 may take the form of exchange of information on theParties’ respective laws, regulations, and other measures on these issues, as well as sharingexperiences on the implementation of such laws, regulations, and other measures.3. Recognizing the global nature of electronic commerce, the Parties affirm the importanceof actively participating in multilateral fora to promote the development of electronic commerce.

Article X-06: Definitions

For purposes of this Chapter:


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delivery

means a computer program, text, video, image, sound recording or other delivery that isdigitally encoded; and

electronic commerce

means commerce conducted through telecommunications, alone or inconjunction with other information and communication technologies.


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Competition

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19. COMPETITION POLICYCOMPETITION POLICY

Article X-01: Competition Policy

1. The Parties recognize the importance of free and undistorted competition in their traderelations. The Parties acknowledge that anti-competitive business conduct has the potential to distort the proper functioning of markets and undermine the benefits of tradeliberalization.2. Each Party shall take appropriate measures to proscribe anti-competitive businessconduct, recognizing that such measures will enhance the fulfilment of the objectives of this Agreement.3. The Parties shall cooperate on matters relating to proscribing anti-competitive businessconduct in the free trade area in accordance with the

Agreement between the EuropeanCommunities and the Government of Canada Regarding the Application of their Competition Laws

, entered into force on 17 June 1999, or any successor Agreement.4. The measures referred to in paragraph 2 shall be consistent with the principles of transparency, non-discrimination and procedural fairness. Exclusions from theapplication of competition law shall be transparent. Each Party shall make available tothe other Party public information concerning such exclusions provided under itscompetition laws.5. In this Article, “anti-competitive business conduct” means anti-competitive agreements,concerted practices or arrangements by competitors; anti-competitive practices by anenterprise that is dominant in a market; and mergers with substantial anti-competitiveeffects.

Article X-02: Application of Competition Policy to Enterprises

1. Each Party shall ensure that the measures referred to in Article X-01.2 apply to theParties to the extent required by their respective laws.2. For greater certainty(a) in Canada, the Competition Act is binding on and applies to an agent of Her Majestyin right of Canada or a province that is a corporation, in respect of commercial activitiesengaged in by the corporation in competition, whether actual or potential, with other persons to the extent that it would apply if the agent were not an agent of Her Majesty.Such an agent may include State enterprises, monopolies and enterprises granted specialor exclusive rights or privileges; and(b) in the European Union, State enterprises, monopolies and enterprises granted specialrights or privileges are subject to the European Union’s rules on competition. However,


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enterprises entrusted with the operation of services of general economic interest or havingthe character of a revenue-producing monopoly are subject to these rules, in so far as theapplication of these rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them.

Article X-03: Dispute Settlement

1. Nothing in this Chapter shall be subject to any form of dispute settlement under theAgreement.

Article X-04: Definition


Service of general economic interest

means for the European Union:a service that cannot be provided satisfactorily and under conditions, such as price, objectivequality characteristics, continuity and access to the service, consistent with the public interest, byan undertaking operating under normal market conditions. The operation of an SGEI must beentrusted to one or more undertakings by the State by way of a public service assignment thatdefines the obligations of the undertakings in question and of the State.


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20. STATE ENTERPRISES, MONOPOLIES AND ENTERPRISES GRANTEDSPECIAL RIGHTS (MSE)Chapter on State Enterprises, Monopolies and Enterprises granted Special Rights orPrivileges

Article 1

1. For the purposes of this Chapter, the following definitions shall apply:(a) "State Enterprise" means an enterprise owned or controlled by a Party(b) “Monopoly” means an entity of a commercial character, including a consortium or government agency, that in a relevant market in the territory of a Party is designatedas the sole supplier or purchaser of a good or service, but does not include an entitythat has been granted an exclusive intellectual property right solely by reason of suchgrant.(c) "Covered entity" means:i) a monopoly; or ii) a supplier of a good or service if it is one of a small number of services or goodssuppliers authorised or established, formally or in effect, by a Party and the Partysubstantially prevents competition among those suppliers in its territory; or iii) any entity that has been formally or in effect granted by a Party any special rightsor privileges, substantially affecting the ability of any other enterprise to provide thesame good or service in the same geographical area under substantially equivalentconditions, and allowing it to escape, in whole or in part, competitive pressures or market constraints;

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or iv) a state enterprise.(d) “Designate” means to establish or authorize a monopoly, or to expand the scope of amonopoly to cover an additional good or service.(e) “Non-discriminatory treatment” means the better of national treatment and most-favoured-nation treatment as set out in this Agreement.(f) "In accordance with commercial considerations" means consistent with customary business practices of a privately held enterprise in the relevant business or industry.

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For greater certainty, the granting of a license to a limited number of enterprises inallocating a scarce resource through objective, proportional and non-discriminatorycriteria is not in and of itself a special right.


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Article 2

1. The Parties confirm their rights and obligations under Article XVII, paragraphs 1 through 3, of GATT 1994, the Understanding on the Interpretation of Article XVII of GATT 1994, as well asunder Article VIII of GATS, paragraphs 1 and 2, which are hereby incorporated into and made part of this Agreement and shall apply.2. This Chapter does not apply to procurement by a Party for goods and services purchased for governmental purposes and not with a view to commercial resale or with a view to use in thesupply of goods and services for commercial sale, whether or not that procurement is "covered procurement" within the meaning of Article II of (Chapter XX - Government Procurement).3. Articles 4 and 5 of this Chapter do not apply to sectors set out in Article XX of CBTS andArticle YY of the Investment chapter 4. Articles 4 and 5 of this Chapter do not apply to measures of a covered entity where a NationalTreatment or MFN reservation of a Party, as set out in that Party's schedule in Annex X, would be applicable if the same measures had been adopted or maintained by that Party.

Article 3

1. Without prejudice to the Parties' rights and obligations under this Agreement, nothing in thisChapter prevents Parties from designating or maintaining state enterprises or monopolies or fromgranting enterprises special rights or privileges.2. A Party shall not require or encourage covered entities to act in a manner inconsistent with thisAgreement.

Article 4

Each Party shall ensure in its territory that a covered entity accords non-discriminatory treatmentto a covered investment, to a good of the other Party

and

or to a service supplier of the other Party in its purchase or sale of a good or a service.

Article 5

1. Except to fulfill the purpose

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for which a monopoly has been created or for which specialrights or privileges have been granted, or in the case of a state enterprise to fulfill its publicmandate, and provided that the entity's conduct is consistent with the provisions in Article 4 of this Chapter and the (Chapter XX – Competition), each Party shall ensure that a covered entityacts in accordance with commercial considerations in the relevant territory in its purchases andsales of goods, including with regard to price, quality, availability, marketability, transportationand other terms and conditions of purchase or sale, as well as in its purchases or supply of

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Such as public service obligations or regional development

Kommentiert [MK7]:

Canada and EU agree this is closed, pending satisfactory result of final reservation exchange.

Kommentiert [MK8]:

Note for legal scrub: “and or” or just “or”?


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(i) as specified in each Party's annexes to this Chapter; and(ii) not procured with a view to commercial sale or resale, or for use in the production or supply of goods or services for commercial sale or resale;(b) by any contractual means, including: purchase; lease; and rental or hire purchase, with or without an option to buy;(c) for which the value, as estimated in accordance with paragraphs 6 through 8,equals or exceeds the relevant threshold specified in a Party's annexes to thisChapter, at the time of publication of a notice in accordance with Article VI;(d) by a procuring entity; and(e) that is not otherwise excluded from coverage in paragraph 3 or a Party's annexesto this Chapter.3. Except where provided otherwise in a Party's annexes to this Chapter, this Chapter doesnot apply to:(a) the acquisition or rental of land, existingbuildings or other immovable property or the rights thereon;(b) non-contractual agreements or any form of assistance that a Party provides,including cooperative agreements, grants, loans, equity infusions, guarantees andfiscal incentives;(c) the procurement or acquisition of fiscal agency or depository services, liquidationand management services for regulated financial institutions or services related tothe sale, redemption and distribution of public debt, including loans andgovernment bonds, notes and other securities;(d) public employment contracts;(e) procurement conducted:(i) for the specific purpose of providing international assistance, includingdevelopment aid;(ii) under the particular procedure or condition of an international agreementrelating to the stationing of troops or relating to the joint implementation by the signatory countries of a project; or (iii) under the particular procedure or condition of an internationalorganization, or funded by international grants, loans or other assistance


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where the applicable procedure or condition would be inconsistent withthis Chapter.4. The procurement subject to the rules of this chapter shall be all procurement covered byAppendices X and Y, in which each Party's commitments shall be set out as follows:(a) in Annex X-01, the central government entities whose procurement is covered bythis Chapter;(b) in Annex X-02, the sub-central government entities whose procurement is covered by this Chapter;(c) in Annex X-03, all other entities whose procurement is covered by this Chapter;(d) in Annex X-04, the goods covered by this Chapter;(e) in Annex X-05, the services, other than construction services, covered by thisChapter;(f) in Annex X-06, the construction services covered by this Chapter;(g) in Annex X-07, any General Notes; and(h) in Annex X-08, the means of publication used for this Chapter.5. Where a procuring entity, in the context of covered procurement, requires persons notcovered under a Party's annexes to this Chapter to procure in accordance with particular requirements, Article IV shall apply

mutatis mutandis

to such requirements.

Valuation

6. In estimating the value of a procurement for the purpose of ascertaining whether it is acovered procurement, a procuring entity shall:(a) neither divide a procurement into separate procurements nor select or use a particular valuation method for estimating the value of a procurement with theintention of totally or partially excluding it from the application of this Chapter;and(b) include the estimated maximum total value of the procurement over its entireduration, whether awarded to one or more suppliers, taking into account all formsof remuneration, including:(i) premiums, fees, commissions and interest; and


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(ii) where the procurement provides for the possibility of options, the totalvalue of such options.7. Where an individual requirement for a procurement results in the award of more than onecontract, or in the award of contracts in separate parts (hereinafter referred to as "recurringcontracts" the calculation of the estimated maximum total value shall be based on:(a) the value of recurring contracts of the same type of good or service awardedduring the preceding 12 months or the procuring entity's preceding fiscal year,adjusted, where possible, to take into account anticipated changes in the quantityor value of the good or service being procured over the following 12 months; or (b) the estimated value of recurring contracts of the same type of good or service to be awarded during the 12 months following the initial contract award or the procuring entity's fiscal year.8. In the case of procurement by lease, rental or hire purchase of goods or services, or procurement for which a total price is not specified, the basis for valuation shall be:(a) in the case of a fixed-term contract:(i) where the term of the contract is 12 months or less, the total estimatedmaximum value for its duration; or (ii) where the term of the contract exceeds 12 months, the total estimatedmaximum value, including any estimated residual value;(b) where the contract is for an indefinite period, the estimated monthly instalmentmultiplied by 48; and(c) where it is not certain whether the contract is to be a fixed-term contract,subparagraph (b) shall be used.

Article III Security and General Exceptions

1. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not disclosing any information that it considers necessary for the protection of its essentialsecurity interests relating to the procurement of arms, ammunition

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or war material, or to procurement indispensable for national security or for national defence purposes.2. Subject to the requirement that such measures are not applied in a manner that wouldconstitute a means of arbitrary or unjustifiable discrimination between Parties where the sameconditions prevail or a disguised restriction on international trade, nothing in this Chapter shall be construed to prevent a Party fromimposing or enforcing measures:

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The expression "ammunition” in this Article is considered equivalent to the expression "munitions".


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(a) necessary to protect public morals, order or safety;(b) necessary to protect human, animal or plant life or health;(c) necessary to protect intellectual property; or (d) relating to goods or services of persons with disabilities, philanthropicinstitutions or prison labour.

Article IV General Principles

Non-Discrimination

1. With respect to any measure regarding covered procurement, each Party, including its procuring entities, shall accord immediately and unconditionally to the goods and services of theother Party and to the suppliers of the other Party offering such goods or services, treatment noless favourable than the treatment the Party, including its procuring entities, accords to goods,services and suppliers. For greater certainty, such treatment includes:(a) within Canada, treatment no less favourable than that accorded by a province or territory, including its procuring entities, to goods and services of, and to supplierslocated in, that province or territory; and(b) within the European Union, treatment no less favourable than that accorded by aMember State or a sub-central region of a Member State, including its procuringentities, to goods and services of, and suppliers located in, that Member State or sub-central region, as the case may be.2. With respect to any measure regarding covered procurement, a Party, including its procuring entities, shall not:(a) treat a locally established supplier less favourably than another locally establishedsupplier on the basis of the degree of foreign affiliation or ownership; or (b) discriminate against a locally established supplier on the basis that the goods or services offered by that supplier for a particular procurement are goods or servicesof the other Party.

Use of Electronic Means

3. When conducting covered procurement by electronic means, a procuring entity shall:(a) ensure that the procurement is conducted using information technology systemsand software, including those related to authentication and encryption of


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information, that are generally available and interoperable with other generallyavailable information technology systems and software; and(b) maintain mechanisms that ensure the integrity of requests for participation andtenders, including establishment of the time of receipt and the prevention of inappropriate access.

Conduct of Procurement

4. A procuring entity shall conduct covered procurement in a transparent and impartialmanner that:(a) is consistent with this Chapter, using methods such as open tendering, selectivetendering and limited tendering;(b) avoids conflicts of interest; and(c) prevents corrupt practices.

Rules of Origin

5. For purposes of covered procurement, a Party shall not apply rules of origin to goods or services imported from or supplied from the other Party that are different from the rules of originthe Party applies at the same time in the normal course of trade to imports or supplies of thesame goods or services from the same Party.

Offsets

6. With regard to covered procurement, a Party, including its procuring entities, shall notseek, take account of, impose or enforce any offset.

Measures Not Specific to Procurement

7. Paragraphs 1 and 2 shall not apply to: customs duties and charges of any kind imposedon, or in connection with, importation; the method of levying such duties and charges; other import regulations or formalities and measures affecting trade in services other than measuresgoverning covered procurement.

Article V Information on the Procurement System

1. Each Party shall:(a) promptly publish any law, regulation, judicial decision, administrative ruling of general application, standard contract clause mandated by law or regulation andincorporated by reference in notices or tender documentation and procedureregarding covered procurement, and any modifications thereof, in an officially


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designated electronic or paper medium that is widely disseminated and remainsreadily accessible to the public; and(b) provide an explanation thereof to the other Party, on request.2. Each Party shall list, in Annex X-08:[[Note: This article may require adjustment based on a final structure and naming convention for market access annexes/appendices.](a) the electronic or paper media in which the Party publishes the informationdescribed in paragraph 1;(b) the electronic or paper media in which the Party publishes the notices required byArticles VI, VIII:7 and XV:2; and(c) the website address or addresses where the Party publishes:(i) its procurement statistics pursuant to Article XV:5; or (ii) its notices concerning awarded contracts pursuant to Article XV:6.3. Each Party shall promptly notify the Committee of any modification to the Party'sinformation listed in Annex X-08.

Article VI Notices

Notice of Intended Procurement

1. For each covered procurement, a procuring entity shall publish a notice of intended procurement, except in the circumstances described in Article XII.All the notices of intended procurement shall be directly accessible [by electronic means free of charge through a single point of access subject to paragraph 2.] In addition, the notices may also be published in an appropriate paper medium. Such medium shall be widely disseminated andsuch notices shall remain readily accessible to the public, at least until expiration of the time- period indicated in the notice.The appropriate paper and electronic medium shall be listed by each Party in Annex X-08.2. A Party may apply a transitional period of up to 5 years from the date of entry into forceof this Agreement to entities covered by Annex 2 and Annex 3 that are not ready to participate ina single point of access referred to in paragraph 1. Those entities shall, during such transitional period, provide their notices of intended procurement, [if accessible by electronic means,]


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through links in a gateway electronic site that is accessible free of charge and listed in Annex X-08.3. Except as otherwise provided in this Chapter, each notice of intended procurement shallinclude:(a) the name and address of the procuring entity and other information necessary tocontact the procuring entity and obtain all relevant documents relating to the procurement, and their cost and terms of payment, if any;(b) a description of the procurement, including the nature and the quantity of thegoods or services to be procured or, where the quantity is not known, theestimated quantity;(c) for recurring contracts, an estimate, if possible, of the timing of subsequentnotices of intended procurement;(d) a description of any options;(e) the time-frame for delivery of goods or services or the duration of the contract;(f) the procurement method that will be used and whether it will involve negotiationor electronic auction;(g) where applicable, the address and any final date for the submission of requests for participation in the procurement;(h) the address and the final date for the submission of tenders;(i) the language or languages in which tenders or requests for participation may besubmitted, if they may be submitted in a language other than an official languageof the Party of the procuring entity;(j) a list and brief description of any conditions for participation of suppliers,including any requirements for specific documents or certifications to be provided by suppliers in connection therewith, unless such requirements are included intender documentation that is made available to all interested suppliers at the sametime as the notice of intended procurement;(k) where, pursuant to Article VIII, a procuring entity intends to select a limitednumber of qualified suppliers to be invited to tender, the criteria that will be usedto select them and, where applicable, any limitation on the number of suppliersthat will be permitted to tender; and(l) an indication that the procurement is covered by this Chapter.


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3. A Party, including its procuring entities, shall not adopt or apply any registration systemor qualification procedure with the purpose or the effect of creating unnecessary obstacles to the participation of suppliers of the other Party in its procurement.

Selective Tendering

4. Where a procuring entity intends to use selective tendering, the entity shall:(a) include in the notice of intended procurement at least the information specified inArticle VI:2(a), (b), (f), (g), (j), (k) and (l) and invite suppliers to submit a requestfor participation; and(b) provide, by the commencement of the time-period for tendering, at least theinformation in Article VI:2 (c), (d), (e), (h) and (i) to the qualified suppliers that itnotifies as specified in Article X:3(b).5. A procuring entity shall allow all qualified suppliers to participate in a particular procurement, unless the procuring entity states in the notice of intended procurement anylimitation on the number of suppliers that will be permitted to tender and the criteria for selectingthe limited number of suppliers.6. Where the tender documentation is not made publicly available from the date of publication of the notice referred to in paragraph 4, a procuring entity shall ensure that thosedocuments are made available at the same time to all the qualified suppliers selected inaccordance with paragraph 5.

Multi-Use Lists

7. A procuring entity may maintain a multi-use list of suppliers, provided that a noticeinviting interested suppliers to apply for inclusion on the list is:(a) published annually; and(b) where published by electronic means, made available continuously,in the appropriate medium listed in Annex X-08.8. The notice provided for in paragraph 7 shall include:(a) a description of the goods or services, or categories thereof, for which the list may be used;(b) the conditions for participation to be satisfied by suppliers for inclusion on the listand the methods that the procuring entity will use to verify that a supplier satisfiesthe conditions;


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(c) the name and address of the procuring entity and other information necessary tocontact the entity and obtain all relevant documents relating to the list;(d) the period of validity of the list and the means for its renewal or termination, or where the period of validity is not provided, an indication of the method by whichnotice will be given of the termination of use of the list; and(e) an indication that the list may be used for procurement covered by this Chapter.9. Notwithstanding paragraph 7, where a multi-use list will be valid for three years or less, a procuring entity may publish the notice referred to in paragraph 7 only once, at the beginning of the period of validity of the list, provided that the notice:(a) states the period of validity and that further notices will not be published; and(b) is published by electronic means and is made available continuously during the period of its validity.10. A procuring entity shall allow suppliers to apply at any time for inclusion on a multi-uselist and shall include on the list all qualified suppliers within a reasonably short time.11. Where a supplier that is not included on a multi-use list submits a request for participation in a procurement based on a multi-use list and all required documents, within thetime-period provided for in Article X:2, a procuring entity shall examine the request. The procuring entity shall not exclude the supplier from consideration in respect of the procurementon the grounds that the entity has insufficient time to examine the request, unless, in exceptionalcases, due to the complexity of the procurement, the entity is not able to complete theexamination of the request within the time-period allowed for the submission of tenders.

Annex X-02 and Annex X-03 Entities

12. A procuring entity covered under Annex X-02 or X-03may use a notice inviting suppliersto apply for inclusion on a multi-use list as a notice of intended procurement, provided that:(a) the notice is published in accordance with paragraph 7 and includes theinformation required under paragraph 8, as much of the information requiredunder Article VI:2 as is available and a statement that it constitutes a notice of intended procurement or that only the suppliers on the multi-use list will receivefurther notices of procurement covered by the multi-use list; and(b) the entity promptly provides to suppliers that have expressed an interest in a given procurement to the entity, sufficient information to permit them to assess their interest in the procurement, including all remaining information required inArticle VI:2, to the extent such information is available.


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13. A procuring entity covered under Annex X-02 or X-03may allow a supplier that hasapplied for inclusion on a multi-use list in accordance with paragraph 10 to tender in a given procurement, where there is sufficient time for the procuring entity to examine whether thesupplier satisfies the conditions for participation.

Information on Procuring Entity Decisions

14. A procuring entity shall promptly inform any supplier that submits a request for participation in a procurement or application for inclusion on a multi-use list of the procuringentity's decision with respect to the request or application.15. Where a procuring entity rejects a supplier's request for participation in a procurement or application for inclusion on a multi-use list, ceases to recognize a supplier as qualified, or removes a supplier from a multi-use list, the entity shall promptly inform the supplier and, onrequest of the supplier, promptly provide the supplier with a written explanation of the reasonsfor its decision.

Article IX Technical Specifications and Tender Documentation

Technical Specifications

1. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe any conformity assessment procedure with the purpose or the effect of creatingunnecessary obstacles to international trade.2. In prescribing the technical specifications for the goods or services being procured, a procuring entity shall, where appropriate:(a) set out the technical specification in terms of performance and functionalrequirements, rather than design or descriptive characteristics; and(b) base the technical specification on international standards, where such exist;otherwise, on national technical regulations, recognized national standards or building codes.3. Where design or descriptive characteristics are used in the technical specifications, a procuring entity should indicate, where appropriate, that it will consider tenders of equivalentgoods or services that demonstrably fulfil the requirements of the procurement by includingwords such as "or equivalent" in the tender documentation.4. A procuring entity shall not prescribe technical specifications that require or refer to a particular trademark or trade name, patent, copyright, design, type, specific origin, producer or supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement requirements and provided that, in such cases, the entity includes words such as "or equivalent" in the tender documentation.


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procured, a procuring entity shall take into account such factors as the complexity of the procurement, the extent of subcontracting anticipated and the realistic time required for production, de-stocking and transport of goods from the point of supply or for supply of services.9. The evaluation criteria set out in the notice of intended procurement or tender documentation may include, among others, price and other cost factors, quality, technical merit,environmental characteristics and terms of delivery.10. A procuring entity shall promptly:(a) make available tender documentation to ensure that interested suppliers havesufficient time to submit responsive tenders;(b) provide, on request, the tender documentation to any interested supplier; and(c) reply to any reasonable request for relevant information by any interested or participating supplier, provided that such information does not give that supplier an advantage over other suppliers.

Modifications

11. Where, prior to the award of a contract, a procuring entity modifies the criteria or requirements set out in the notice of intended procurement or tender documentation provided to participating suppliers, or amends or reissues a notice or tender documentation, it shall transmitin writing all such modifications or amended or re-issued notice or tender documentation:(a) to all suppliers that are participating at the time of the modification, amendment or re-issuance, where such suppliers are known to the entity, and in all other cases, inthe same manner as the original information was made available; and(b) in adequate time to allow such suppliers to modify and re-submit amendedtenders, as appropriate.

Article X Time-Periods

General

1. A procuring entity shall, consistent with its own reasonable needs, provide sufficient timefor suppliers to prepare and submit requests for participation and responsive tenders, taking intoaccount such factors as:(a) the nature and complexity of the procurement;(b) the extent of subcontracting anticipated; and


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(c) the time necessary for transmitting tenders by non-electronic means from foreignas well as domestic points where electronic means are not used.Such time-periods, including any extension of the time-periods, shall be the same for allinterested or participating suppliers.

Deadlines

2. A procuring entity that uses selective tendering shall establish that the final date for thesubmission of requests for participation shall not, in principle, be less than 25 days from the dateof publication of the notice of intended procurement. Where a state of urgency dulysubstantiated by the procuring entity renders this time-period impracticable, the time-period may be reduced to not less than 10 days.3. Except as provided for in paragraphs 4, 5, 7 and 8 a procuring entity shall establish thatthe final date for the submission of tenders shall not be less than 40 days from the date on which:(a) in the case of open tendering, the notice of intended procurement is published; or (b) in the case of selective tendering, the entity notifies suppliers that they will beinvited to submit tenders, whether or not it uses a multi-use list.4. A procuring entity may reduce the time-period for tendering established in accordancewith paragraph 3 to not less than 10 days where:(a) the procuring entity has published a notice of planned procurement as described inArticle VI:4 at least 40 days and not more than 12 months in advance of the publication of the notice of intended procurement, and the notice of planned procurement contains:(i) a description of the procurement;(ii) the approximate final dates for the submission of tenders or requests for participation;(iii) a statement that interested suppliers should express their interest in the procurement to the procuring entity;(iv) the address from which documents relating to the procurement may beobtained; and(v) as much of the information that is required for the notice of intended procurement under Article VI:2, as is available;


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6. Where a procuring entity receives a tender with a price that is abnormally lower than the prices in other tenders submitted, it may verify with the supplier that it satisfies the conditionsfor participation and is capable of fulfilling the terms of the contract.7. A procuring entity shall not use options, cancel a procurement or modify awardedcontracts in a manner that circumvents the obligations under this Chapter.

Article XV Transparency of Procurement Information

Information Provided to Suppliers

1. A procuring entity shall promptly inform participating suppliers of the entity's contractaward decisions and, on the request of a supplier, shall do so in writing. Subject to paragraphs 2and 3 of Article XVI, a procuring entity shall, on request, provide an unsuccessful supplier withan explanation of the reasons why the entity did not select its tender and the relative advantagesof the successful supplier's tender.

Publication of Award Information

2. Not later than 72 days after the award of each contract covered by this Chapter, a procuring entity shall publish a notice in the appropriate paper or electronic medium listed inAnnex X-08. Where the entity publishes the notice only in an electronic medium, theinformation shall remain readily accessible for a reasonable period of time. The notice shallinclude at least the following information:(a) a description of the goods or services procured;(b) the name and address of the procuring entity;(c) the name and address of the successful supplier;(d) the value of the successful tender or the highest and lowest offers taken intoaccount in the award of the contract;(e) the date of award; and(f) the type of procurement method used, and in cases where limited tendering wasused in accordance with Article XII, a description of the circumstances justifyingthe use of limited tendering.

Maintenance of Documentation, Reports and Electronic Traceability

3. Each procuring entity shall, for a period of at least three years from the date it awards acontract, maintain:


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(a) the documentation and reports of tendering procedures and contract awardsrelating to covered procurement, including the reports required under Article XII;and(b) data that ensure the appropriate traceability of the conduct of covered procurement by electronic means.

Collection and Reporting of Statistics

4. Each Party shall collect and report to the Committee statistics on its contracts covered bythis Chapter. Each report shall cover one year and be submitted within two years of the end of the reporting period, and shall contain:(a) for Annex X-01 procuring entities:(i) the number and total value, for all such entities, of all contracts covered bythis Chapter;(ii) the number and total value of all contracts covered by this Chapter awarded by each such entity, broken down by categories of goods andservices according to an internationally recognized uniform classificationsystem; and(iii) the number and total value of all contracts covered by this Chapter awarded by each such entity under limited tendering;(b) for Annex X-02 and X-03 procuring entities, the number and total value of contracts covered by this Chapter awarded by all such entities, broken down byAnnex; and(c) estimates for the data required under subparagraphs (a) and (b), with anexplanation of the methodology used to develop the estimates, where it is notfeasible to provide the data.5. Where a Party publishes its statistics on an official website, in a manner that is consistentwith the requirements of paragraph 4, the Party may, instead of reporting to the Committee, provide a link to the website, together with any instructions necessary to access and use suchstatistics.6. Where a Party requires notices concerning awarded contracts, pursuant to paragraph 2, to be published electronically and where such notices are accessible to the public through a singledatabase in a form permitting analysis of the covered contracts, the Party may, instead of reporting to the Committee, provide a link to the website, together with any instructionsnecessary to access and use such data.


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(c) the modification covers an entity over which the Party has effectively eliminatedits control or influence under subparagraph 3(b),it must object in writing within 45 days of receipt of the notification referred to in subparagraph2(a) or be deemed to have accepted the adjustment or modification, including for the purposes of Chapter X (Dispute Settlement).

Rectifications

5. The following changes to a Party's Annexes shall be considered a rectification, providedthat they do not affect the mutually agreed coverage provided for in the Agreement:(a) a change in the name of an entity;(b) a merger of two or more entities listed within an Annex; and(c) the separation of an entity listed in an Annex into two or more entities that are alladded to the entities listed in the same Annex.6. In the case of proposed rectifications to a Party's Annexes, the Party shall notify the other Party every two years, in line with the cycle of notifications provided for under the GPA,following the entry into force of the Agreement.7. A Party may notify the other Party of an objection to a proposed rectification within 45days from having received the notification. Where a Party submits an objection, it shall set outthe reasons why it believes the proposed rectification is not a change provided for in paragraph 5of this Article, and describe the effect of the proposed rectification on the mutually agreedcoverage provided for in the Agreement. If no such objection is submitted in writing within 45days after having received the notification, the Party shall be deemed to have agreed to the proposed rectification.

Article XIX Institutions

[Note: Article subject to Institutional Chapter discussions.]

Committee on Government Procurement

1. There shall be a Committee on Government Procurement composed of representativesfrom each Party. The Committee shall meet as necessary for the purpose of affording Parties theopportunity to consult on any matters relating to the operation of this Chapter or the furtheranceof its objectives, and to carry out such other responsibilities as may be assigned to it by theParties.2. The Committee shall meet, upon request of a Party, to:(a) consider issues regarding public procurement that are referred to it by a Party;


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(b) exchange information relating to the public procurement opportunities in eachParty;(c) discuss any other matters related to the operation of this Chapter; and(d) consider the promotion of coordinated activities to facilitate access for suppliersto procurement opportunities in the territory of each Party. Such activities mayinclude information sessions in particular with a view to improving electronicaccess to publicly-available information on each Party’s procurement regime, andinitiatives to facilitate access for small and medium-sized enterprises.3. Each Party shall submit statistics relevant to the procurement covered by this Chapter, asestablished in Article XV, annually to the Committee.


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Note: See Government Procurement Market Access Offers attached separately.


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22. INTELLECTUAL PROPERTY

Intellectual Property Rights

CETA – IPR

CHAPTER

Article 1.1

Objectives

The objectives of this chapter are to:(a) facilitate the production and commercialization of innovative and creative products, and the provision of services, between the Parties; and(b) achieve an adequate and effective level of protection and enforcement of intellectual propertyrights.Article 1.2

Definitions

For the purposes of this Chapter, “pharmaceutical product” means a product including a chemical drug, biologic drug, vaccine or radiopharmaceutical, which is manufactured, sold or represented for use in:(a) making a medical diagnosis, treating, mitigating or preventing disease, disorder, or abnormal physicalstate, or its symptoms, or (b) restoring, correcting or modifying physiological functions.Section 1

Principles

Article 2

Nature and Scope of Obligations

The provisions of this chapter complement the rights and obligations between the Parties under the WTOAgreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter called TRIPSAgreement).Each Party shall be free to determine the appropriate method of implementing the provisions of thisAgreement within its own legal system and practice. Nothing in this Agreement creates any obligation with respect to the distribution of resources as betweenenforcement of intellectual property rights and enforcement of law in general.Article 3


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Public Health Concerns

1. The Parties recognise the importance of the Doha Declaration on the TRIPS Agreement and PublicHealth adopted on 14 November 2001 by the Ministerial Conference of the World Trade Organisation.In interpreting and implementing the rights and obligations under this Chapter, the Parties shall ensureconsistency with this Declaration.2. The Parties shall contribute to the implementation and respect the Decision of the WTO GeneralCouncil of 30 August 2003 on Paragraph 6 of the Doha Declaration on the TRIPS Agreement and PublicHealth, as well as the Protocol amending the TRIPS Agreement, done at Geneva on 6 December 2005.Article 4

Exhaustion

Nothing in this Chapter shall affect the freedom of the Parties to determine whether and under whatconditions the exhaustion of intellectual property rights applies.Article 4A

Disclosure of Information

Nothing in this Chapter shall require a Party to disclose information that would otherwise be contrary toits law or exempt from disclosure under its law, including its laws and regulations concerning access toinformation and privacy.

Section 2

Standards Concerning Intellectual Property RightsArticle 5

Copyright and Related Rights

Article5.1–ProtectionGranted

1. The Parties shall comply with the Berne Convention for the Protection of Literary and ArtisticWorks (1886, last amended in 1979), the WIPO Copyright Treaty – WCT (Geneva, 1996), and theWIPO Performances and Phonograms Treaty – WPPT (Geneva, 1996). The Parties shall comply withArticles 1 through 22 of the Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (1961).2. The moral rights of the authors and performers shall be protected in accordance with Article 6

bis

of the Berne Convention for the Protection of Literary and Artistic Works and Article 5 of the WIPOPerformances and Phonograms Treaty (WPPT).3. To the extent permitted by the treaties referred to in paragraph 1, nothing in this Chapter shall beconstrued as restricting each Party’s ability to limit intellectual property protection to performances that

Kommentiert [FD-9]:

Legal scrub to ensure appropriatemultilateral treaty reference nomenclature across the chapter.


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are fixed in phonograms.

Article5.2–Broadcasting andCommunicationtothePublic

1. The Parties shall provide performers the exclusive right to authorize or prohibit 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.2. The Parties shall ensure that a single equitable remuneration is paid by the user if a phonogram published for commercial purposes, or a reproduction of such phonogram, is used for broadcasting bywireless means or for any communication to the public, and to ensure that this remuneration is shared between the relevant performers and phonogram producers. The Parties may, in the absence of agreement between the performers and phonogram producers, lay down the conditions as to the sharingof this remuneration between them.

Article5.3- Protectionof Technological Measures

5.3(1) Each Party shall provide adequate legal protection and effective legal remedies against thecircumvention of effective technological measures

48

that are used by authors, performers or producers of phonograms in connection with the exercise of their rights in, and that restrict acts in respect of, their works, performances, and phonograms, which are not authorized by the authors, the performers or the producers of phonograms concerned or permitted by law.5.3(2) In order to provide the adequate legal protection and effective legal remedies referred to in paragraph 5.3(1), each Party shall provide protection at least against:(a) to the extent provided by its law:(i) the unauthorized circumvention of an effective technological measure carried outknowingly or with reasonable grounds to know; and(ii) the offering to the public by marketing of a device or product, including computer programs, or a service, as a means of circumventing an effective technological measure;and(b) the manufacture, importation, or distribution of a device or product, including computer programs, or provision of a service that:(i) is primarily designed or produced for the purpose of circumventing an effective

48

For the purposes of this Article,

technological measures

means any technology, device, or component that, in thenormal course of its operation, is designed to prevent or restrict acts, in respect of works, performances, or phonograms, which are not authorized by authors, performers or producers of phonograms, as provided for by a Party’s law. Without prejudice to the scope of copyright or related rights contained in a Party’s law,technological measures shall be deemed effective where the use of protected works, performances, or phonograms is controlled by authors, performers or producers of phonograms through the application of arelevant access control or protection process, such as encryption or scrambling, or a copy controlmechanism, which achieves the objective of protection.


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Article5.5- Liabilityof IntermediaryServiceProviders

1. Subject to the other paragraphs of this Article, each Party shall provide limitations or exceptions inits domestic legislation regarding the liability of service providers, when acting as intermediaries, for infringements of copyright or related rights that take place on or through communication networks, inrelation to the provision or use of their services.2. The limitations or exceptions referred to in the previous paragraph:a) shall cover at least the following functions:i. hosting of the information at the request of a user of the hosting services;ii. caching carried out through an automated process, when the service provider:a. does not modify the information other than for technical reasons; b. ensures that any directions related to the caching of the information that are specifiedin a manner widely recognized and used by industry are complied with; andc. does not interfere with the use of technology that is lawful and widely recognized andused by the industry in order to obtain data on the use of the information;iii. mere conduit, which consists of the provision of the means to transmit information provided by a user, or the means of access to a communication network; b) may also cover other functions including: providing an information location tool, by making reproductions of copyright material in anautomated manner, and communicating the reproductions.3. Eligibility for the limitations or exceptions in this Article may not be conditioned on the service provider monitoring its service, or affirmatively seeking facts indicating infringing activity.4. Each Party may prescribe in its domestic law, conditions for service providers to qualify for thelimitations or exceptions in this Article. Without prejudice to the above each Party may establishappropriate procedures for effective notifications of claimed infringement, and effective counter-notifications by those whose material is removed or disabled through mistake or misidentification.5. This Article is without prejudice to the availability in a Party' law of other defences, limitations andexceptions to the infringement of copyright or related rights. This Article shall not affect the possibility of a court or administrative authority, in accordance with Parties' legal systems, of requiring the service provider to terminate or prevent an infringement.

Article5.6–Camcording

Each Party may provide for criminal procedures and penalties to be applied in accordance with its lawsand regulations against any person who, without authorisation of the theatre manager or the holder of copyright in a cinematographic work, makes a copy of that work or any part thereof, from a performanceof the work in a motion picture exhibition facility open to the public.Article 6

Trademarks


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4. Each Party shall provide for enforcement by administrative action, to the extent provided for by itsdomestic law, to prohibit a person from manufacturing, preparing, packaging, labelling, selling or importing or advertising a food commodity in a manner that is false, misleading or deceptive or islikely to create an erroneous impression regarding its origin.5. Consistent with paragraph 4, each Party will provide for administrative action in respect of complaints related to the labelling of products, including their presentation, in a manner that is false,misleading or deceptive or is likely to create an erroneous impression regarding their origin.6. The registration of a trademark which contains or consists of a geographical indication of the other Party listed in Annex I shall be refused or invalidated, ex officio if a Party's legislation so permits or at the request of an interested party, with respect to a product that falls within the product classspecified in Annex I for that geographical indication and that does not originate in the place of originspecified in Annex I for that geographical indication.7. There shall be no obligation under this Article 7 to protect geographical indications which are not or cease to be protected in their place of origin, or which have fallen into disuse in that place. If ageographical indication of a Party listed in Annex I ceases to be protected in its place of origin or falls into disuse in that place, that Party shall notify the other Party and request cancellation.

Article 7.5 – Homonymous Geographical Indications

1. In the case of homonymous geographical indications of the Parties for products falling within thesame product class, each Party shall determine the practical conditions under which the homonymousindications in question will be differentiated from each other, taking into account the need to ensureequitable treatment of the producers concerned and that consumers are not misled.2. Where a Party, in the context of negotiations with a third country, proposes to protect a geographicalindication identifying a product originating in the third country, where that indication ishomonymous with a geographical indication of the other Party listed in Annex I and where that product falls within the product class specified in Annex I for the homonymous geographicalindication of the other Party, the other Party shall be informed and be given the opportunity tocomment before the geographical indication becomes protected.

Article 7.6 – Exceptions

1. Notwithstanding paragraphs 2 and 3 of Article 7.4, Canada shall not be required to provide thelegal means for interested parties to prevent the use of the terms listed in Part A of Annex I and


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the CETA Committee on Geographical Indications, may decide to amend Annex I by addinggeographical indications or by removing geographical indications which have ceased to be protected or have fallen into disuse in their place of origin.2. A geographical indication shall not in principle be added to Part A of Annex I, if it is a name that onthe date of signing of this Agreement is listed in the relevant Register of the European Union with astatus of “Registered”, in respect of a Member State of the European Union.3. A geographical indication identifying a product originating in a particular Party shall not be added toAnnex I(a) if it is identical to a trademark that has been registered in the other Party in respect of the same or similar products, or to a trademark in respect of which in the other Party rights have beenacquired through use in good faith and an application has been filed in respect of the same or similar products;(b) if it is identical to the customary name of a plant variety or an animal breed existing in the other Party; or (c) if it is identical with the term customary in common language as the common name for such product in the other Party.

Article 7.8 – Other protection

The provisions of this Article 7 are without prejudice to the right to seek recognition and protection of ageographical indication under the relevant legislation of the European Union or Canada.Article 8

Designs

Article8.1- International Agreements

The Parties shall make all reasonable efforts to accede to the Geneva Act of the Hague AgreementConcerning the International Registration of Industrial Designs (1999).

Article8.2- RelationshiptoCopyright

The subject matter of a design right may be protected under copyright law if the conditions for such protection are met. The extent to which, and the conditions under which, such a protection is conferred,including the level of originality required, shall be determined by each Party.Article 9


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the period of

sui generis

protection; b) in the case where the patents are not owned by the same person and this gives rise to conflictingrequests for the

sui generis

protection, selected by agreement between the patent holders.Each Party shall provide that the period of

sui generis

protection shall be for a period equal to the periodwhich elapsed between the date on which the application for a patent was filed and the date of the firstauthorisation to place the product on the market of that Party as a pharmaceutical product reduced by a period of five years. Notwithstanding the previous paragraph, the duration of the

sui generis

protection may not exceed a period of two to five years, to be established by each Party.

51

Each Party may provide that the period of

sui generis

protection shall lapse:a) if the sui generis protection is surrendered by the beneficiary; b) if prescribed administrative fees are not paid.Each Party may reduce the period of protection commensurate with any unjustified delays resulting fromthe inactions of the applicant after applying for the market authorisation, when the holder of the patent isthe applicant for market authorisation or an entity related to it.5. Within the limits of the protection conferred by the patent, the

sui generis

protection shall extend onlyto the pharmaceutical product covered by the authorisation to place that product on the market and for any use of that product as a pharmaceutical product that has been authorized before the expiry of the

sui generis

protection. Subject to the preceding sentence, the

sui generis

protection shall confer the samerights as conferred by the patent and shall be subject to the same limitations and obligations. Notwithstanding paragraphs 1 through 4 of this Article, each Party may also limit the scope of the protection by providing exceptions for making, using, offering for sale, selling or importing of productsfor the purpose of export during the period of protection.6. Each Party may revoke the protection on grounds relating to invalidity of the applicable paten

t

,including if the basic applicable patent has lapsed before its lawful term expires or is revoked or limitedto the extent that the product for which the protection was granted would no longer be protected by theclaims of the basic patent, or on grounds relating to withdrawal of the appropriate authorisation or authorisations to place the product on their respective market, or if the protection was granted contrary tothe provisions of paragraph 2.Article 9 bis

Patent Linkage Mechanisms Relating to Pharmaceutical Products

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This is without prejudice to a possible extension to incentivise or reward research incertain target populations, such as children, if provided for by either Party.


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If a Party relies on “patent linkage” mechanisms whereby the granting of marketing authorisations (or notices of compliance or similar concepts) for generic pharmaceutical products is linked to the existenceof patent protection, it shall ensure that all litigants are afforded equivalent and effective rights of appeal.Article 10

Protection of undisclosed data relation to pharmaceutical products

1. If a Party requires, as a condition for approving the marketing of pharmaceutical products that utilizenew chemical entities

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, the submission of undisclosed test or other data necessary to determine whether the use of such products is safe and effective, the Party shall protect [EU: such data] against disclosure[CA: of the data of persons making such submissions

– comment: legal scrub

], where the origination of such data involves considerable effort, except where the disclosure is necessary to protect the public or unless steps are taken to ensure that the data is protected against unfair commercial use.2. Each Party shall provide that for data subject to paragraph 1 that are submitted to the Party after thedate of entry into force of this Agreement:a) no person other than the person that submitted them may, without the latter’s permission, rely onsuch data in support of an application for [CA: product approval] [EU: marketing authorisation

-comment: legal scrub

] during a period of not less than six years from the date on which the Party grantedapproval to the person that produced the data for approval to market its product, and b) no Party shall grant [CA: product approval] EU: marketing authorisation

- comment: legal scrub

]to any person who relies on such data during a period of not less than eight years from the date on whichthe Party granted [EU: authorisation] [CA: approval


] to the person that producedthe data for [EU: authorisation] [CA: approval


] to market its product, unless the person or entity who produced this data provides its permission.Subject to this provision, there shall be no limitation on any Party to implement abbreviated [EU:authorisation] [CA: approval] procedures for such products on the basis of bioequivalence and bioavailability studies.Article 11

Data Protection on Plant Protection Products

1. The Parties shall determine safety and efficacy requirements before authorising the placing on themarket of plant protection products.

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For greater certainty, with respect to data protection a chemical entity in Canada includesa biologic or radiopharmaceutical which is regulated as a new drug under the Food andDrug Regulations.


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2. The Parties shall recognise a temporary right to the owner of a test or study report submitted for the first time to achieve a marketing authorisation for a plant protection product.During such period, the test or study report will not be used for the benefit of any other person aiming toachieve a marketing authorisation for plant protection product, except when the explicit consent of thefirst owner is proved. This right will be hereinafter referred as data protection.3. The test or study report should be necessary for the authorisation or for an amendment of anauthorisation in order to allow the use on other crops.4. The period of data protection shall be at least ten years starting at the date of the firstauthorisation in that Party with respect to data supporting the authorisation of a new active ingredientand data supporting the concurrent registration of the end-use product containing the active ingredient.The duration of protection may be extended in order to encourage the authorisation of low-risk plant protection products and minor uses.5. The Parties may also establish data protection requirements or financial compensationrequirements for data supporting the amendment or renewal of an authorisation.6. Each of the Parties shall establish rules to avoid duplicative testing on vertebrate animals. Anyapplicant intending to perform tests and studies involving vertebrate animals should be encouraged totake the necessary measures to verify that those tests and studies have not already been performed or initiated.7. The new applicant and the holder or holders of the relevant authorisations should be encouragedto make every effort to ensure that they share tests and studies involving vertebrate animals. The costs of sharing the test and study reports shall be determined in a fair, transparent and non-discriminatory way.The prospective applicant is only required to share in the costs of information he is required to submit tomeet the authorisation requirements.8. The holder or holders of the relevant authorisation shall have a claim on the prospective applicantfor a fair share of the costs incurred by him. The Party may direct the parties involved to resolve thematter by formal and binding arbitration administered under national law.Article 12

Plant Varieties


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Article 15

Evidence

Each Party shall ensure that, in the case of an alleged infringement of an intellectual property rightcommitted on a commercial scale, the judicial authorities shall have the authority to order, whereappropriate and following an application, the production of relevant information, as provided for in theParty's domestic law, including banking, financial or commercial documents under the control of theopposing party, subject to the protection of confidential information.Article 16

Measures for Preserving Evidence

1. The Parties shall ensure that, even before the commencement of proceedings on the merits of thecase, the judicial authorities may, on application by an entity who has presented reasonably availableevidence to support its claims that its intellectual property right has been infringed or is about to beinfringed, order prompt and effective provisional measures to preserve relevant evidence in respect of thealleged infringement, subject to the protection of confidential information.2. Each Party may provide that such measures include the detailed description, with or without thetaking of samples, or the physical seizure of the alleged infringing goods, and, in appropriate cases, thematerials and implements used in the production and/or distribution of these goods and the documentsrelating thereto. The judicial authorities shall have the authority to take those measures, if necessarywithout the other party being heard, in particular where any delay is likely to cause irreparable harm tothe right holder or where there is a demonstrable risk of evidence being destroyed.Article 17

Right of Information

Without prejudice to its law governing privilege, the protection of confidentiality of information sourcesor the processing of personal data, each Party shall provide that, in civil judicial proceedings concerningthe enforcement of intellectual property rights, its judicial authorities shall have the authority, upon a justified request of the right holder, to order the infringer or the alleged infringer, to provide to the rightholder or to the judicial authorities, at least for the purpose of collecting evidence, relevant informationas provided for in its applicable laws and regulations that the infringer or alleged infringer possesses or controls. Such information may include information regarding any person involved in any aspect of theinfringement or alleged infringement and regarding the means of production or the channels of distribution of the infringing or allegedly infringing goods or services, including the identification of third persons alleged to be involved in the production and distribution of such goods or services and of their channels of distribution.Article 18

Provisional and Precautionary Measures


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1. Each Party shall provide that its judicial authorities shall have the authority to order prompt andeffective provisional and precautionary measures, including an interlocutory injunction, against a party,or where appropriate, against a third party over whom the relevant judicial authority exercises jurisdiction, to prevent an infringement of an intellectual property right from occurring, and in particular,to prevent infringing goods from entering the channels of commerce.2. Each Party shall provide that its judicial authorities have the authority to order the seizure or other taking into custody of the goods suspected of infringing an intellectual property right so as to prevent their entry into or movement within the channels of commerce.3. Each Party shall provide that, in the case of an alleged infringement of an intellectual propertyright committed on a commercial scale, the judicial authorities may order, in accordance with domesticlaw, the precautionary seizure of property of the alleged infringer, including the blocking of its bank accounts and other assets. To that end, the judicial authorities may order the communication of relevant bank, financial or commercial documents, or access to other relevant information, as appropriate.Article 19

Other remedies

1. The Parties shall ensure that the judicial authorities may order, at the request of the applicant andwithout prejudice to any damages due to the right holder by reason of the infringement, and withoutcompensation of any sort, the definitive removal from the channels of commerce, or the destruction,of goods that they have found to be infringing an intellectual property right. The Parties shallensure that the judicial authorities may order, if appropriate, destruction of materials andimplements predominantly used in the creation or manufacture of those goods. In considering arequest for such remedies, the need for proportionality between the seriousness of the infringementand the remedies ordered, as well as the interests of third parties, shall be taken into account.2. The Parties shall ensure that the judicial authorities have the authority to order that those remediesshall be carried out at the expense of the infringer, unless particular reasons are invoked for notdoing so.Article 20

Injunctions

1. Each Party shall provide that, in civil judicial proceedings concerning the enforcement of intellectual property rights, its judicial authorities shall have the authority to issue an order against a party to desistfrom an infringement, and

inter alia,

an order to that party, or, where appropriate, to a third party over whom the relevant judicial authority exercises jurisdiction, to prevent infringing goods from enteringinto the channels of commerce.


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2. Notwithstanding the other provisions of this Section, a Party may limit the remedies available againstuse by government, or by third parties authorized by government, without the use of authorization of theright holders to the payment of remuneration provided that the Party complies with the provisions of PartII of the TRIPS Agreement specifically addressing such use. In other cases, the remedies under thisSection shall apply or, where these remedies are inconsistent with a Party’s law, declaratory judgmentsand adequate compensation shall be available.Article 21

Damages

1. Each Party shall provide that:(a) in civil judicial proceedings, its judicial authorities shall have the authority to order the infringer who knowingly or with reasonable grounds to know, engaged in infringing activity of intellectual property rights to pay the right holder:(i) damages adequate to compensate for the injury the right holder has suffered as a result of theinfringement; or (ii) the profits of the infringer that are attributable to the infringement, which may be presumed to be the amount of damages referred to in paragraph (i);(b) in determining the amount of damages for infringements of intellectual property rights, its judicialauthorities may consider,

inter alia

, any legitimate measure of value that may be submitted by the rightholder, including lost profits.2. As an alternative to the previous paragraph, a Party’s law may provide for payment of remuneration, such as a royalty or fee, to compensate a right holder for the unauthorized use of itsintellectual property.Article 22

Legal Costs

Each Party shall provide that its judicial authorities, where appropriate, shall have the authority to order,at the conclusion of civil judicial proceedings concerning the enforcement of intellectual property rights,that the prevailing party be awarded payment by the losing party of legal costs and other expenses, as provided for under that Party’s law.Article 23

Presumption of Authorship or Ownership

For the purposes of civil proceedings involving copyright or related rights,(a) for the author of a literary or artistic work, in the absence of proof to the contrary, to be regardedas such, and consequently to be entitled to institute infringement proceedings, it shall be sufficient for


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his/her name to appear on the work in the usual manner. Proof to the contrary may include registration;(b) the provisions under (a) shall apply mutatis mutandis to the holders of rights related to copyrightwith regard to their protected subject matter.Section 4

Border Measures

Article 24

Border Measures

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Article24.1–Scopeof Border Measures

1. The references to the infringement of intellectual property rights in this Article shall be interpreted asreferring to instances of counterfeit trademark goods, pirated copyright goods or counterfeit geographicalindication goods. For the purposes of this paragraph, the following definitions shall apply:“pirated copyright goods” means any goods which are copies made without the consent of the rightholder or person duly authorized by the right holder in the country of production and which are madedirectly or indirectly from an article where the making of that copy would have constituted aninfringement of a copyright or a related right under the law of the Party in which the border measure procedures are applied;“counterfeit trademark goods” means any goods, including packaging, bearing, without authorization, atrademark which is identical to the trademark validly registered in respect of such goods, or whichcannot be distinguished in its essential aspects from such a trademark, and which infringes the rights of the owner of the trademark in question under the law of the Party in which the border measures procedures are applied.“counterfeit geographical indication goods” means any goods under Article 7.2 falling within one of the product classes listed in Annex III, including packaging, bearing without authorization, a geographicalindication which is identical to the geographical indication validly registered or otherwise protected inrespect of such goods and which infringes the rights of the owner or right holder of the geographicalindication in question under the law of the Party in which the border measures procedures are applied;2. Each Party shall adopt or maintain procedures with respect to import and export shipments under which a right holder may request its competent authorities to suspend the release of, or detain goodssuspected of infringing an intellectual property right.3. Each Party shall adopt or maintain procedures with respect to import and export shipments under which its competent authorities may act on their own initiative to temporarily suspend the release of

, or

detain goods suspected of infringing an intellectual property right to provide a right holder an

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It is understood that there shall be no obligation to apply the procedures set forth in this Section to goods put onthe market in another country by or with the consent of the right holder.

Kommentiert [MS14]:

Legal review should clean up use of theword “Article” as it is used to describe both the entire section on border measures as well as the 7 specific sub-sections. For example,it should be clear that the scope of border measures set out in 24.1applies to the entire set of border measures provisions.

Kommentiert [AG15]:

Legal teams to revisit during legal scrubthe need for a comma here between “of” and “or” as well as whether it might be sensible to add the words “in order” between “right” and“to provide”.


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opportunity to formally request assistance under paragraph 2.4. Either Party may enter into an arrangement with one or more third parties to establish commonsecurity customs clearance procedures. Goods cleared pursuant to the terms of the common customs procedures of such an arrangement shall be deemed to be in compliance with paragraphs 2 and 3, provided the Party concerned retains the legal authority to comply with these paragraphs.5. Each Party may adopt or maintain the procedures referred to in paragraphs 2 and 3 with respect totranshipments and shipments in customs transit.6. Each Party may exclude from the application of the above provisions small quantities of goods of anon-commercial nature contained in travellers’ personal luggage or small quantities of goods of a non-commercial nature sent in small consignments.7. For the purposes of this Article:(a) “Import shipments” means shipments of goods brought into the territory of a Party from a placeoutside that territory, while those goods remain under customs control. This definition includesgoods brought into the territory to a free zone or customs warehouse, but excludes shipments incustoms transit and transhipments.(b) “Shipments in customs transit” means shipments of goods that enter the territory of a Party froma place outside that territory and are authorized by customs authorities for transport under continuous customs control from an office of entry to an office of exit, for the purpose of exitingthe territory. Shipments in customs transit that are subsequently approved for removal fromcustoms control without exiting the territory are considered to be import shipments.(c) “Transhipments” means shipments of goods that are transferred under customs control from theimporting means of transport to the exporting means of transport within the area of one Customsoffice which is the office of both importation and exportation.(d) “Export shipments” means shipments of goods which are to be taken from the territory of a Partyto a place outside that territory, excluding shipments in customs transit and transhipments.

Article24.2–Application bytheRightHolder

1. Each Party shall provide that its competent authorities require a right holder that requests the procedures described in Article 24.1 to provide adequate evidence to satisfy the competent authoritiesthat, under the law of the Party providing the procedures, there is prima facie an infringement of the rightholder's intellectual property right, and to supply sufficient information that may reasonably be expectedto be within the right holder's knowledge to make the suspect goods reasonably recognisable by thecompetent authorities. The requirement to provide sufficient information shall not unreasonably deter recourse to the procedures described in Article 24.1.


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2. Each Party shall provide for applications to suspend the release of, or to detain goods

54

suspected of infringing an IPR listed Article 24.1, under customs control in its territory. The competent authoritiesmay provide for such applications to apply to multiple shipments. Each Party may provide that, at therequest of the right holder, the application to suspend the release of, or to detain suspect goods mayapply to selected points of entry and exit under customs control.3. Each Party shall ensure that its competent authorities inform the applicant within a reasonable periodwhether they have accepted the application. Where its competent authorities have accepted theapplication, they shall also inform the applicant of the period of validity of the application.4. A Party may provide that, where the applicant has abused the procedures described in Article 24.1, or where there is due cause, its competent authorities have the authority to deny, suspend, or void anapplication.

Article24.3–Provisionof Information fromtheRightHolder

Each Party shall permit its competent authorities to request a right holder to supply relevant informationthat may reasonably be expected to be within the right holder's knowledge to assist the competentauthorities in taking the border measures referred to in this Article. Each Party may also allow a rightholder to supply such information to its competent authorities.

Article24.4–Securityor EquivalentAssurance

Each Party shall provide that its competent authorities have the authority to require a right holder thatrequests the procedures described in Article 24.1 to provide a reasonable security or equivalent assurancesufficient to protect the defendant and the competent authorities and to prevent abuse. Each Party shall provide that such security or equivalent assurance shall not unreasonably deter recourse to these procedures.A Party may provide that such security may be in the form of a bond conditioned to hold the defendantharmless from any loss or damage resulting from any suspension of the release of, or detention of, thegoods in the event the competent authorities determine that the goods are not infringing. A Party may,only in exceptional circumstances or pursuant to a judicial order, permit the defendant to obtain possession of suspect goods by posting a bond or other security.

Article24.5–Determinationas toInfringement

Each Party shall adopt or maintain procedures by which its competent authorities may determine, within

54

The requirement to provide for such applications is subject to the obligations to provide procedures referred to in subparagraphs 24.1(2) and 24.1(3).


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a reasonable period after the initiation of the procedures described in Article 24.1, whether the suspectgoods infringe an intellectual property right.

Article24.6–Remedies

1. Each Party shall provide that its competent authorities have the authority to order the destruction of goods following a determination referred to in Article 24.5 that the goods are infringing. In cases wheresuch goods are not destroyed, each Party shall ensure that, except in exceptional circumstances, suchgoods are disposed of outside the channels of commerce in such a manner as to avoid any harm to theright holder.2. In regard to counterfeit trademark goods, the simple removal of the trademark unlawfully affixed shallnot be sufficient, other than in exceptional cases, to permit release of the goods into the channels of commerce.3. Each Party may provide that its competent authorities have the authority to impose administrative penalties following a determination referred to in Article 24.5 that the goods are infringing.

Article24.7–Specificcooperationintheareaof border measures

1. The Parties agree to cooperate with each other with a view to eliminating international trade in goodsinfringing intellectual property rights. For this purpose, they shall establish contact points in their administrations and be ready to exchange information on trade in infringing goods. They shall, in particular, promote the exchange of information and cooperation between customs authorities withregard to trade in goods infringing intellectual property rights.2. Such cooperation may include exchanges of information regarding mechanisms for receivinginformation from rights holders, best practices, and experiences with risk management strategies, as wellas information to aid in the identification of shipments suspected of containing infringing goods.3. Cooperation under this Article 24 shall be conducted consistent with relevant internationalagreements. The Committee referred to in Article [X] 'The Joint Customs Cooperation Committee' inChapter [X] 'Customs and Trade Facilitation' will set the priorities and provide for the adequate procedures for cooperation under this Article 24 between the competent authorities.Section 5

Co-operation

Article 25

Co-operation


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Ελιά Καλαμάτας Elia Kalamatas Table and processed

olivesGreece

Μαστίχα Χίου Masticha Chiou Confectionery and

Baked ProductsGreece

Φέτα* Feta Cheese Greece Ελαιόλαδο Καλαμάτας

Kalamata olive oil Oils and animal fats Greece

Ελαιόλαδο Κολυμβάρι Χανίων Κρήτης

KolymvariChanion KritisOlive OilOils and animal fats Greece

Ελαιόλαδο Σητείας Λασιθίου Κρήτης

Sitia LasithiouKritis Olive oilOils and animal fats Greece

Ελαιόλαδο Λακωνία Olive Oil Lakonia Oils and animal fats Greece Κρόκος Κοζάνης Krokos Kozanis Spices Greece Κεφαλογραβιέρα Kefalograviera Cheeses Greece Γραβιέρα Κρήτης Graviera Kritis Cheeses Greece Γραβιέρα Νάξου Graviera Naxou Cheeses Greece Μανούρι Manouri Cheeses Greece Κασέρι Kasseri Cheeses Greece Φασόλια Γίγαντες Ελέφαντες Καστοριάς

Fassolia GigantesElefantesKastoriasFresh and processedvegetable productsGreece

Φασόλια Γίγαντες Ελέφαντες Πρεσπών

Fassolia GigantesElefantes PresponFlorinasFresh and processedvegetable productsGreece

Κονσερβολιά Αμφίσσης Konservolia

AmfissisTable and ProcessedolivesGreece

Λουκούμι Γεροσκήπου Loukoumi

GeroskipouConfectionery and baked productsCyprusBaena Oils and animal fats SpainSierra Mágina Oils and animal fats Spain


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Part BGeographical Indications Identifying a Product Originating in CanadaIndication Transliteration(For informationpurposes only)Product Class Place of Origin(Territory, Region orLocality)


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Annex II (a)

Valencia OrangeOrange ValenciaValencia Black Forest Ham Jambon Forêt NoireTiroler Bacon

55

Bacon Tiroler

1

Parmesan Bavarian Beer Bière Bavaroise Munich Beer Bière MunichSt. George Cheese Fromage St-George[s]

55

Use of spelling variations in English or French to be permitted, including Tyrol, Tiroler, Tyroler, Tirolien


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Annex II(b)

The term "comté" in association with food products when used to refer to a county (for example "Comtédu Prince-Edouard"; "Prince Edward County"; "Comté de Prescott-Russell"; "Prescott-Russell County").The term “Beaufort” in association with cheese products, produced in the proximity of the geographical place called "Beaufort range", Vancouver Island, British Columbia.


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ANNEX IIIProduct classes

1. “fresh, frozen and processed meats” means products falling under Chapter 2 and heading 16.01 or 16.02 of the Harmonized System.2. “dry-cured meats” means dry cured meat products falling under Chapter 2 and heading 16.01 or 16.02 of the Harmonized System.3. “hops” means products falling under heading 12.10 of the Harmonized System;4. “fresh, frozen and processed fish products” means products falling under Chapter 3 and heading16.03, 16.04 or 16.05 of the Harmonized System;5. “butter” means products falling under heading 04.05 of the Harmonized System;6. “cheeses” means products falling under heading 04.06 of the Harmonized System;7. “fresh and processed vegetable products” means products containing vegetables falling under Chapter 7 and Chapter 20 of the Harmonized System;8. “fresh and processed fruits and nuts” means products containing fruits falling under Chapter 8and 20 of the Harmonized System;9. “spices” means products falling under Chapter 9 of the Harmonized System;10. “cereals” means products falling under Chapter 10 of the Harmonized System;11. “products of the milling industry” means products falling under Chapter 11 of the HarmonizedSystem;12. “oilseeds” means products falling under Chapter 12 of the Harmonized System;13. “beverages from plant extracts” means products falling under heading 13.02 of the HarmonizedSystem;14. “oils and animal fats” means products falling under Chapter 15 of the Harmonized System;15. “confectionery and baked products” means products falling under heading 17.04, 18.06, 19.04, or 19.05 of the Harmonized System;16. “pasta” means products falling under heading 19.02 of the Harmonized System;17. “table and processed olives” means products falling under heading 20.01 or 20.05 of theHarmonized System;18. “mustard paste” means products falling under sub-heading 2103.30 of the Harmonized System;19. “beer” means products falling under heading 22.03 of the Harmonized System;20. “vinegar” means products falling under heading 22.09 of the Harmonized System;21. “essential oils” means products falling under heading 33.01 of the Harmonized System.


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23. SUSTAINABLE DEVELOPMENTC

HAPTER

XX:T

RADE AND

S

USTAINABLE

D

EVELOPMENT

Article XX.1: Context and objectives

1. Recalling the Rio Declaration on Environment and Development of 1992, the Agenda 21on Environment and Development, the Johannesburg Declaration and Plan of Implementation of 2002 on Sustainable Development, the 2006 Ministerial declaration of the UN Economic and Social Council on Full Employment and Decent Work, and the2008 ILO Declaration on Social Justice for a Fair Globalisation, the Parties recognise thateconomic development, social development and environmental protection areinterdependent and mutually reinforcing components of sustainable development, andthey reaffirm their commitment to promoting the development of international trade insuch a way as to contribute to the objective of sustainable development, for the welfare of present and future generations.2. The Parties underline the benefit of considering trade related labour and environmentalissues as part of a global approach to trade and sustainable development. Accordingly,the Parties agree that the rights and obligations under Chapters X+1 and X+2

56

are to beconsidered in the context of this Agreement.3. In this regard, through the implementation of Chapters X+1 and X+2

57

, the Parties aimto:a. promote sustainable development through the enhanced coordination andintegration of their respective labour, environmental and trade policies andmeasures; b. promote dialogue and cooperation between the Parties with a view to developingtheir trade and economic relations in a manner supportive of their respectivelabour and environmental protection measures and standards, and to upholdingtheir environmental and labour protection objectives in a context of freer, openand transparent trade relations;c. enhance enforcement of domestic labour and environmental laws and respect for labour and environmental international agreements;d. promote the full use of instruments, such as impact assessment and stakeholder consultations, in the regulation of trade, labour and environmental issues andencourage businesses, civil society organisations and citizens to develop andimplement practices that contribute to the achievement of sustainabledevelopment goals;

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Refer to chapters on Environment and Labour

57

Refer to chapters on Environment and Labour


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e.

promote public consultation and participation in the discussion of sustainabledevelopment issues arising under this Agreement and in the development of relevant domestic laws and policies.


The Parties stress the importance of ensuring transparency as a necessary element to promote public participation and information within the context of this Chapter, inaccordance with its provisions, with Chapter [Transparency] and with the relevant provisions in Chapters [labour] and [environment].

Article 3: Co-operation and promotion of trade supporting sustainable development

1. The Parties recognise the value of international cooperation to achieve the goal of sustainable development and the integration at the international level of economic, social andenvironmental development and protection initiatives, actions and measures. Therefore, inthe context of this Agreement, they agree to dialogue and consult with each other with regardto trade-related sustainable development issues of common interest.2. The Parties affirm that trade should promote sustainable development. Accordingly, in thecontext of their respective policy or legislative frameworks and in a manner consistent withtheir international obligations, each Party shall strive to promote trade and economic flowsand practices that contribute to enhancing decent work and environmental protection,including by:a. Encouraging the development and use of voluntary schemes relating to the sustainable production of goods and services, such as eco-labelling and fair trade schemes; b. Encouraging voluntary best practices of corporate social responsibility byenterprises, such as those embodied in the OECD Guidelines for MultilateralEnterprises, to strengthen coherence between economic, social and environmentalobjectives.c. Encouraging the integration of sustainability considerations in private and publicconsumption decisions; andd. Promoting the development, establishment, maintenance or improvement of environmental performance goals and standards.3. The Parties recognise the importance of addressing specific sustainable developmentissues by assessing the potential economic, social and environmental impacts of possibleactions, taking account of the views of stakeholders. Therefore, to identify any need for action that may arise in connection with this Agreement, each Party commits to review,monitor and assess the impact of the implementation of this Agreement on sustainabledevelopment in its territory. The Parties may agree to carry out joint assessments. These


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assessments will be conducted in a manner that is adapted to the practices and conditionsof each Party, through the respective participative processes of the Parties, as well asthose set up under this Agreement.

Article 4: Institutional Arrangements

1. The Parties establish a [NAME] on Trade and Sustainable Development, comprised of high level representatives of the Parties responsible for matters covered by this Chapter,Chapter X [Labour], and Chapter Y [Environment]. The [NAME] on Trade andSustainable Development shall oversee the implementation of these Chapters, includingcooperative activities and review of impacts of the Agreement on sustainabledevelopment, address in an integrated manner any matters of common interest in relationto the interface between economic development, social development and environmental protection, and carry out the duties set out under Chapter X [Labour] and Chapter Y[Environment]. With regard to the latter, the [NAME] on Trade and SustainableDevelopment can also carry out these duties through dedicated sessions comprising participants responsible for matters covered, respectively, under Chapter X [Labour] or Chapter Y [Environment].2. The [NAME] on Trade and Sustainable Development shall meet within the first year of the entry into force of this Agreement, and thereafter as often as the Parties consider necessary. The Contact Points referred to in [relevant articles of the labour andenvironment chapters] shall be responsible for communications between the Partiesregarding the scheduling and organisation of such meetings or dedicated sessions.3. Unless the Parties otherwise jointly decide, each regular or dedicated meeting of the[NAME] on Trade and Sustainable Development shall include a session with the publicto discuss matters relating to the implementation of the relevant Chapter(s).4. The NAME on Trade and Sustainable Development shall promote transparency and public participation. To this end:a. all decisions and reports that the NAME on Trade and Sustainable Developmentmay adopt shall be made public, unless the NAME on Trade and SustainableDevelopment decides otherwise; b. the NAME on Trade and Sustainable Development shall present updates onmatters related to this Chapter, including its implementation, to the Civil SocietyForum referred to in [Article]. Any views or opinions of the Civil Society Forummay be submitted to the Parties directly, or through the consultative mechanismsreferred to in Article 8.3 of Chapter … (Trade and Labour) and in Article X.13 of Chapter X (Trade and Environment). The NAME on Trade and SustainableDevelopment shall report annually on the follow-up given to suchcommunications;


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c. the NAME on Trade and Sustainable Development shall report annually onmatters it may address pursuant to Article X.7(3) of Chapter X (Trade andEnvironment) or Article 8.4 of Chapter … (Trade and Labour).

Article 5: Civil society forum

1. The Parties shall facilitate a joint Civil Society Forum comprising representatives of civil society organisations established in their territories, including participants in thedomestic consultative mechanisms referred to in Article 8.3 of Chapter … (Trade andLabour) and in Article X.13 of Chapter … (Trade and Environment), in order to conducta dialogue encompassing sustainable development aspects of this Agreement.2. The Civil Society Forum shall be convened once a year unless otherwise agreed by theParties. The Parties shall promote a balanced representation of relevant interests,including independent representative employers, unions, labour and businessorganisations, environmental groups, as well as other relevant civil society organisationsas appropriate. The Parties may also facilitate participation by virtual means.


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24. TRADE AND LABOUR

C

HAPTER

X+1:T

RADE AND

L

ABOUR

Article 1: Context and objectives

1. The Parties recognise the value of international co-operation and agreements onemployment and labour affairs as a response of the international community to economic,employment and social challenges and opportunities resulting from globalisation. Theyrecognize the contribution that international trade could make to full and productiveemployment and decent work for all and commit to consulting and co-operating asappropriate on trade-related labour and employment issues of mutual interest.2. The Parties recognise the beneficial role that decent work, encompassing core labour standards, and high levels of labour protection, coupled with effective enforcement, can haveon economic efficiency, innovation and productivity, including export performance, and theyhighlight the value of greater policy coherence in those areas. In this context, the Partiesrecognize the importance of social dialogue on labour matters among workers andemployers, and their respective organizations, and governments, and commit to promotion of such dialogue in their territories.

Article 2: Right to regulate and levels of protection

Recognising the right of each Party to set its labour priorities, to establish its levels of labour protection and to adopt or modify its relevant laws and policies accordingly in a manner compatible with its international labour commitments, including those in this Chapter, eachParty shall strive to continue to improve those laws and policies with the goal of providinghigh levels of labour protection.

Article 3: Multilateral labour standards and agreements

1. Each Party shall ensure that its labour law and practices embody and provide protection for the fundamental principles and rights at work, and reaffirm its commitment to respecting, promoting and realising such principles and rights in accordance with its obligations asmember of the ILO and its commitments under the ILO Declaration on FundamentalPrinciples and Rights at Work and its Follow-up, adopted by the International Labour Conference at its 86th Session in 1998.(a) freedom of association and the effective recognition of the right to collective bargaining;(b) the elimination of all forms of forced or compulsory labour;(c) the effective abolition of child labour; and


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(d) the elimination of discrimination in respect of employment and occupation.2. Each Party shall ensure that its labour law and practices promote the following objectivesincluded in the Decent Work Agenda, and in accordance with the 2008 ILO Declarationon Social Justice for a Fair Globalisation, and other international commitments:(a) health and safety at work, including the prevention of occupational injuries andillnesses and compensation in cases of such injuries or illnesses;(b) establishment of acceptable minimum employment standards for wage earners,including those not covered by collective agreements; and,(c) non-discrimination in respect of working conditions, including for migrantworkers.3. In connection with paragraph 2(a) of this article, each Party shall ensure that its labour lawand practices embody and provide protection for working conditions that respect the healthand safety of workers, including by formulating policies which promote basic principlesaimed at preventing accidents and injuries arising out of or in the course of work, and aimedat developing a domestic preventative safety and health culture where the principle of prevention is accorded the highest priority. When preparing and implementing measuresaimed at health protection and safety at work, each Party shall take account of relevantscientific and technical information and related international standards, guidelines or recommendations if they exist, particularly if such measures may affect trade or investment between the Parties. The Parties acknowledge that where there are existing or potentialhazards or conditions that could reasonably be expected to cause injury or illness to a person,the lack of full scientific certainty shall not be used as a reason for postponing cost-effective protective measures.4. Each Party reaffirms its commitment to effectively implement in its laws and practices, in itswhole territory, the fundamental ILO Conventions that Canada and the Member States of theEuropean Union have ratified respectively. The Parties will make continued and sustainedefforts towards ratifying the fundamental ILO Conventions to the extent that they have notyet done so. The Parties will exchange information on their respective situation andadvancements as regards to the ratification of the fundamental as well as priority and other ILO Conventions that are classified as up to date by the ILO.

Article 4: Upholding levels of protection

1. The Parties recognise that it is inappropriate to encourage trade or investment by loweringthe levels of protection embodied in domestic labour law and standards.


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2. A Party shall not waive or otherwise derogate from, or offer to waive or otherwise derogatefrom, its labour law, as an encouragement for trade or the establishment, acquisition,expansion or retention of an investment or an investor in its territory.3. A Party shall not fail to effectively enforce its labour law, through a sustained or recurringcourse of action or inaction, as an encouragement for trade or investment.

Article 5: Enforcement procedures, Administrative proceedings and review of administrative action

1. In connection with the obligations in Article 4, each Party shall promote compliance withand shall effectively enforce its labour law, including by:a. in accordance with its international commitments, maintaining a system of labour inspection aimed at securing the enforcement of those legal provisions relating toworking conditions and the protection of workers which are enforceable by labour inspectors; b. ensuring that administrative and judicial proceedings are available to persons witha legally recognized interest in a particular matter under its domestic law, in order to permit effective action against infringements of its labour laws, includingappropriate remedies for violations of such laws.2. Each Party shall, within the framework of its legal system, ensure that the proceedingsreferred to in subparagraph 1 (b) are not unnecessarily complicated or prohibitively costly, donot entail unreasonable time limits or unwarranted delays, provide injunctive relief, whereappropriate, and are fair and equitable, including by:a. providing defendants with reasonable notice when a procedure is initiated,including a description of the nature of the proceeding and the basis of the claims; b. affording the parties to the procedures a reasonable opportunity to support or defend their respective positions, including by presenting information or evidence, prior to any final decision;c. providing that final decisions are made in writing and give reasons as appropriateto the case; andd. allowing the parties to an administrative proceeding an opportunity for review of final administrative decisions within a reasonable time by a tribunal established by law, with appropriate guarantees of independence and impartiality of decision-makers.

Article 6: Public Information and Awareness

1. Each Party, as well as complying with Art X.01 of Transparency Chapter, shall encourage public debate with and among non-State actors as regards the development and definition of policies that may lead to the adoption by public authorities of labour law and standards.


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2. Each Party shall promote public awareness of its labour law and standards, as well asenforcement and compliance procedures, including by ensuring the availability of informationand by taking steps to further the knowledge and understanding of workers, employers andtheir representatives.

Article 7: Cooperative activities

1. The Parties commit to cooperate for the promotion of the objectives of this Chapter throughactions such as:- exchange of information on best practices on issues of common interest and on relevantevents, activities, and initiatives organized in their respective territories;- cooperation in international fora dealing with issues relevant for trade and labour andemployment, including in particular the WTO and the ILO;- the international promotion of Fundamental Principles and Rights at Work and their effective application, and the ILO Decent Work Agenda;- dialogue and information sharing on the labour provisions in the context of their respective trade agreements, and their implementation;- exploring collaboration in initiatives vis-a-vis third countries;- other forms of cooperation as the Parties may deem appropriate.2. In identifying areas for cooperation, and in carrying out cooperative activities, the Parties willconsider any views provided by representatives of workers, employers, and civil society.3. The Parties may establish cooperative arrangements with the International Labour Organization and other competent international and regional organisations to draw on their expertise and resources to achieve the objectives of this Chapter.

Article 8: Institutional mechanisms

1. Each Party shall designate one office which shall serve as a Point of Contact with the other Party for the purposes of implementing this Chapter, including with regard to:(a) cooperative programs and activities in accordance with Article 7;(b) the receipt of submissions and communications under Article 9; and(c) information to be provided to the other Party, the panels of experts and the public.


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2. The

NAME TO BE DETERMINED

] on Trade and Sustainable Development establishedunder Chapter X [Trade and Sustainable Development] shall, through its regular meetings or dedicated sessions comprising participants responsible for matters covered under this Chapter discuss matters of common interest, oversee the implementation of this Chapter and review progress under it, including its operation and effectiveness, or address any other matter within the scope of this Chapter as they jointly decide.3. Each Party shall consult a domestic labour or sustainable development advisory group(s), or establish new ones when they do not exist, to provide views and advice on issues relating tothis Chapter. Such groups may submit opinions and make recommendations on any matter related to this Chapter on their own initiative. The domestic advisory group(s) comprise(s)independent representative organisations of civil society in a balanced representation of employers, unions, labour and business organisations, as well as other relevant stakeholdersas appropriate.4. Each Party shall be open to receive and shall give due consideration to submissions from the public on matters related to this Chapter, including communications on implementationconcerns; each Party shall inform its domestic advisory group(s) of such communications.5. The Parties shall take into account the activities of the International Labour Organisation so asto promote greater cooperation and coherence between the work of the Parties and thatOrganisation.

ARTICLE 9: Government Consultations

1. A Party may request consultations with the other Party regarding any matter arising under this Chapter by delivering a written request to the contact point of the other Party. Therequest shall present the matter clearly, identifying the questions at issue and providing a brief summary of any claims under this Chapter. Consultations shall commence promptlyafter a Party delivers a request for consultations.2. During consultations, each Party shall provide the other with sufficient information in its possession to allow a full examination of the matters raised, subject to any domesticlegislation regarding confidential personal and commercial information.3. Where relevant, subject to the agreement of both consulting Parties, they shall seek theinformation or views of any person, organisation or body that may contribute to theexamination of the matter at issue, including the International Labour Organisation.4. If a Party considers that the matter needs further discussion, that Party may request that[NAME] be convened to consider the matter by delivering a written request to the contact point of the other Party. The [NAME] shall convene promptly and endeavour to agree ona resolution of the matter. Where appropriate, it shall seek the advice of the Parties'domestic advisory group(s).


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5. Any solutions or decisions on matters discussed under this Article shall be made publiclyavailable.

Article 10: Panel of Experts

1. For any matter that has not been satisfactorily addressed through government consultations,a Party may, 90 days after the delivery of a request for consultations under Article 9.1, requestthat a Panel of Experts be convened to examine that matter, by delivering a written request tothe contact point of the other Party.2. Subject to the provisions of this Chapter, the Parties shall apply the Rules of Procedure andCode of Conduct set out in Annex I and II of the Chapter on Dispute Settlement, unless theParties agree otherwise.3. The Panel of Experts shall be composed of three panellists.4. The [NAME] shall, at its first meeting after the entry into force of this Agreement,establish a list of at least 9 individuals chosen on the basis of objectivity, reliability and sound judgment who are willing and able to serve as experts in Panel procedures. Each Party shall propose three individuals to serve as experts. The Parties shall also select three individuals whoare not nationals of either Party and who shall act as chairperson to the Panel of experts. The[NAME] will ensure that the list is always maintained at this level.5. The experts proposed as panellists shall comprise individuals with specialised knowledge or expertise in labour law, other issues addressed in this Chapter, or the resolution of disputesarising under international agreements. They shall be independent, serve in their individualcapacities and not take instructions from any organisation or government with regard to issuesrelated to the matter at stake, or be affiliated with the government of any Party, and shallcomply with [the Code of Conduct].6. The Parties shall consult with a view to reaching an agreement on the composition of the Panelof Experts within 10 working days of the date of the receipt by the responding Party of therequest for the establishment of a Panel of Experts. Due attention shall be paid to ensuring that proposed Panellists meet the requirements set out in paragraph (5) of this article and have theexpertise appropriate to the particular matter.7. In the event that the Parties are unable to agree on the composition of the Panel of Expertswithin the time frame laid down in paragraph 4, the selection procedure set forth in Article14.7(3), (4),(5), (6) and (7) of Chapter 14 (Dispute Settlement) shall be applicable in respect of the list established in paragraph (7).8. Unless the Parties agree otherwise, within five working days of the date of the selection of the panellists, the terms of reference of the Panel of Experts shall be:


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"to examine, in the light of the relevant provisions of the Trade and Labour chapter, the matter referred to in the request for the establishment of the Panel of Experts, and to issue a report, inaccordance with Article 12 (Panel of Experts) of Chapter … (Trade and Labour), making recommendations for the resolution of the matter"

9. In matters related to the respect of multilateral agreements as set out in Article 3, the Panelshould seek information from the International Labour Organisation, such as pertinentavailable interpretative guidance, findings or decisions adopted by this body.

58

10. The Panel may request and receive written submissions or any other information fromorganisations, institutions, and persons with relevant information or specialised knowledge.11. The Panel of Experts shall issue to the Parties an interim and a final report setting out thefindings of facts, its determinations as to whether the responding Party has conformed with itsobligations under this chapter and the rationale behind any findings, determinations andrecommendations that it makes. The Panel of Experts shall submit to the Parties the interimreport within 120 days after the last panellist is selected, or as otherwise decided by the Parties.The Parties may provide comments to the Panel on the interim report within 45 days of its presentation. After considering any such comments, the Panel of Experts may reconsider itsreport or make any further examination it considers appropriate. The Panel of Experts shallsubmit the final report to the Parties within 60 days of the submission of the interim report.Each Party shall make the final report publicly available within 30 days of its issuance.12. If in the final report the Panel determines that there has been non-conformity, the Partiesshall engage in discussions and shall endeavour, within three months from the submission of the final report and taking into account that report, to identify appropriate measures or, whereappropriate, to decide upon a mutually satisfactory action plan. The Party concerned shallinform in a timely manner its advisory groups and the other Party of its decisions on anyactions or measures to be implemented

.

Furthermore, the requesting Party shall inform in atimely manner its advisory groups and the other Party of any other action or measure it maydecide to take, as a follow-up to the report, to encourage the resolution of the matter in amanner consistent with this Agreement. The follow-up to the report and the recommendationsof the Panel of Experts shall be monitored by the NAME. The advisory bodies and the CivilSociety Forum may submit observations to the NAME in this regard.13. If the Parties reach a mutually agreed solution to a matter during the time that a Panel of Experts has been established, they shall notify the [NAME] and the Panel of Experts of any suchsolution. Upon notification, the panel procedure shall be terminated.

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This provision shall be applied in accordance with rule 43 of the Rules of Procedure set out inAnnex I of Chapter XX (Dispute Settlement)


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projects, studies, reports, conferences and workshops, on trade-related environmental issues of common interest, in areas such as:(a) the potential impacts of this Agreement on the environment and ways to enhance, preventor mitigate them, taking into account impact assessments carried out by the Parties;(b) activities in international

fora

dealing with issues relevant for both trade andenvironmental policies, including in particular the WTO, the OECD, the United NationsEnvironment Programme and multilateral environmental agreements;(c) the environmental dimension of corporate social responsibility and accountability,including on the implementation and follow-up of internationally agreed guidelines;(d) the trade impact of environmental regulations and standards as well as the environmentalimpacts of trade and investment rules including on the development of environmentalregulations and policy;(e) trade-related aspects of the current and future international climate change regime, as wellas domestic climate policies and programs relating to mitigation and adaptation, includingissues relating to carbon markets, ways to address adverse effects of trade on climate, as wellas means to promote energy efficiency and the development and deployment of low-carbonand other climate-friendly technologies.(f) trade and investment in environmental goods and services, including environmental andgreen technologies and practices, renewable energy, energy efficiency and water use,conservation and treatment;(g) cooperation on trade-related aspects of the conservation and sustainable use of biologicaldiversity;(h) the promotion of life-cycle management of goods, including carbon accounting and endof life management – extended producer responsibility, recycling and reduction of waste, andother best practices;(i) improved understanding of the effects of economic activities and market forces on theenvironment; or (j) exchange of views on the relationship between multilateral environmental agreements andinternational trade rules.2. The parties will consider views or input from the public and interested stakeholders for thedefinition and implementation of their cooperation activities, and they may involve them further in such activities, as appropriate.


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Article X.13: Institutional mechanisms

1. Each Party shall designate one office which shall serve as a Point of Contact with the other Party for the purposes of implementing this Chapter, including with regard to:a) cooperative programs and activities in accordance with Article X.12; b) the receipt of submissions and communications under Article X.7(3); andc) information to be provided to the other Party, the Panels of Experts and the public.2. The [NAME] on Trade and Sustainable Development established under Chapter X [Trade andSustainable Development] shall, through its regular meetings or dedicated sessions comprising participants responsible for matters covered under this Chapter:a) Oversee the implementation of this Chapter and review progress under it; b) Discuss matters of common interest; andc) Address any other matter within the scope of this Chapter as the Parties jointlydecide.3. The Parties shall take into account the activities of relevant multilateral environmentalorganisations or bodies so as to promote greater cooperation and coherence between the work of the Parties and these organisations.4. Each Party shall make use of existing, or establish new, consultative mechanisms, such asdomestic advisory groups, to seek views and advice on issues relating to this Chapter. Suchmechanisms shall involve independent representative organisations of civil society in a balancedrepresentation of environmental groups, business organisations, as well as other relevantstakeholders as appropriate. Through such mechanisms, stakeholders may submit views andmake recommendations on any matter related to this Chapter on their own initiative.

Article X.14: Government consultations

1. A Party may request consultations with the other Party regarding any matter arisingunder this Chapter by delivering a written request to the contact point of the other Party.The request shall present the matter clearly, identifying the questions at issue and providing a brief summary of any claims under this Chapter. Consultations shallcommence promptly after a Party delivers a request for consultations.2. During consultations, each Party shall provide the other with sufficient information inits possession to allow a full examination of the matters raised, subject to any domesticlegislation regarding confidential personal and commercial information.3. Where relevant and agreed to by both Parties, the Parties shall seek the information or views of any person, organisation or body that may contribute to the examination of thematter at issue, including the relevant international organisations or bodies.4. If a Party considers that the matter needs further discussion, that Party may request that[NAME] be convened to consider the matter by delivering a written request to the contact


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point of the other Party. The [NAME] shall convene promptly and endeavour to agree ona resolution of the matter. Where appropriate, it shall seek the advice of the Parties' civilsociety through the consultative mechanisms referred to in Art. X.13(4).5. Any solutions or decisions on matters discussed under this Article shall be made publiclyavailable.

ARTICLE X.15: Panel of Experts

1. For any matter that has not been satisfactorily addressed through governmentconsultations, a Party may, 90 days after the delivery of a request for consultations under Article X.14(1), request that a Panel of Experts be convened to examine that matter, bydelivering a written request to the contact point of the other Party.2. Subject to the provisions of this Chapter, the Parties shall apply the Rules of Procedureand Code of Conduct set out in Annex I and II of the Chapter on Dispute Settlement, unlessthe Parties agree otherwise.3. The Panel of Experts shall be composed of three panellists.4. The Parties shall consult with a view to reaching an agreement on the composition of thePanel of Experts within 10 working days of the date of the receipt by the responding Party of the request for the establishment of a Panel of Experts. Due attention shall be paid toensuring that proposed Panellists meet the requirements set out in paragraph (7) of this articleand have the expertise appropriate to the particular matter.5. In the event that the Parties are unable to agree on the composition of the Panel of Expertswithin the time frame laid down in paragraph 4, the selection procedure set forth in Article14.7(3), (4),(5), (6) and (7) of Chapter 14 (Dispute Settlement) shall be applicable in respectof the list established in paragraph (7).6. The NAME shall, at its first meeting after the entry into force of this Agreement, establisha list of at least 9 individuals chosen on the basis of objectivity, reliability and sound judgment who are willing and able to serve as experts in Panel procedures. Each Party shall propose at least three individuals to serve as experts. The Parties shall also select at leastthree individuals who are not nationals of either Party and who shall act as chairperson to thePanel of Experts. The NAME will ensure that the list is always maintained at this level.7. The experts proposed as panellists shall comprise individuals with specialized knowledgeor expertise in environmental law, issues addressed in this Chapter or the resolution of disputes arising under international agreements. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government withregard to issues related to the matter at stake, or be affiliated with the government of anyParty, and shall comply with the Code of Conduct.


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8. Unless the Parties agree otherwise, within five working days of the date of the selection of the panellists, the terms of reference of the Panel of Experts shall be:

"to examine, in the light of the relevant provisions of the Trade and Environment chapter, thematter referred to in the request for the establishment of the Panel of Experts, and to issue areport, in accordance with Article X (Panel of Experts) of Chapter … (Trade and Environment), making recommendations for the resolution of the matter"

9. In matters related to the respect of multilateral agreements as set out in Article X.3, thePanel should seek views and information from relevant MEA bodies, including any pertinentavailable interpretative guidance, findings or decisions adopted by those bodies.

62

10. The Panel of Experts shall issue to the Parties an interim and a final report setting out thefindings of facts, its determinations as to whether the responding Party has conformed withits obligations under this Chapter and the rationale behind any findings, determinations andrecommendations that it makes. The Panel of Experts shall submit to the Parties the interimreport within 120 days after the last panellist is selected, or as otherwise decided by theParties. The Parties may provide comments to the Panel on the interim report within 45 daysof its presentation. After considering any such comments, the Panel of Experts mayreconsider its report or make any further examination it considers appropriate. The Panel of Experts shall submit the final report to the Parties within 60 days of the submission of theinterim report. Each Party shall make the final report publicly available within 30 days of itsissuance.11. If in the final report the Panel determines that there has been non-conformity, the Partiesshall engage in discussions and shall endeavour, within three months from the submission of the final report and taking into account that report, to identify appropriate measures or, whereappropriate, to decide upon a mutually satisfactory action plan. The Party concerned shallkeep informed in a timely manner its civil society organisations through the consultativemechanisms referred to in Art.X.13(4) and the other Party of its decisions on any actions or measures to be implemented. The follow-up to the report and the recommendations of thePanel of Experts shall be monitored by the NAME. The civil society organisations throughthe consultative mechanisms referred to in Art. X.13(4) and the Civil Society Forum maysubmit observations to the NAME in this regard.12. If the Parties reach a mutually agreed solution to a matter during the time that a Panel of Experts has been established, they shall notify the [NAME] and the Panel of Experts of anysuch solution. Upon notification, the panel procedure shall be terminated.

62

This provision shall be applied in accordance with rule 43 of the Rules of Procedure set out in Annex I of Chapter XX (Dispute Settlement)


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ARTICLE X.16: Dispute Resolution

1. For any matter arising under this Chapter where there is disagreement between theParties, the Parties shall only have recourse to the rules and procedures provided for inArticles X.14 and X.15.2. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of thematter. At any time, the Parties may have recourse to good offices, conciliation, or mediationto resolve that matter.


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26. REGULATORY COOPERATION

REGULATORY COOPERATION

Article X.1: Scope

This Chapter applies to the development, review and methodological aspects of regulatorymeasures of the Parties' regulatory authorities that are covered by,

inter alia

, the

TBT Agreement,

the

SPS Agreement

, the

GATT 1994,

the

GATS

, and Chapters X (TBT); X (SPS); X (CBTS); X(Environment); X (SD) and X (Labour); of this Agreement.

Article X.2: Principles

1. The Parties affirm their rights and obligations relating to regulatory measures under the

TBT Agreement

,

SPS Agreement, GATT 1994

and

GATS

.2. The Parties commit themselves to ensuring high levels of protection for human, animal and plant life or health, and the environment in accordance with the

TBT Agreement

,

SPS Agreement

,

GATT 1994

and

GATS

.3. The Parties recognise the value of regulatory cooperation with their relevant trading partners both bilaterally and multilaterally. The Parties will, whenever practicable and mutually beneficial, approach regulatory cooperation in a way that is open to participation by other international trading partners.4. Without limiting the ability of each Party to carry out its regulatory, legislative and policyactivities, the Parties commit themselves to further developing their regulatory cooperation inlight of their mutual interest in order to: (a) prevent and eliminate unnecessary barriers totrade and investment; (b) enhance the climate for competitiveness and innovation, includingthrough pursuing regulatory compatibility, recognition of equivalence, and convergence; and(c) promote transparent, efficient and effective regulatory processes that better support public policy objectives and fulfil the mandates of regulatory bodies, including through the promotion of information exchange and enhanced use of best practices.5. The provisions of this Chapter replace the Government of Canada – European CommissionFramework on Regulatory Cooperation and Transparency and shall govern the activities previously undertaken in the context of that Framework.6. The Parties may undertake regulatory cooperation activities, on a voluntary basis. For greater certainty, neither Party is obliged to enter into particular regulatory cooperationactivities, and either Party may refuse to cooperate or may withdraw from cooperation.However, if a Party refuses to initiate regulatory cooperation or withdraws from suchcooperation, it should be prepared to explain the reasons for its decision to the other Party.


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Article X.3 Objectives of Regulatory Cooperation

The objectives of regulatory co-operation include:(a) Contributing to the protection of human life, health or safety, animal or plant life or health and the environment by:(i) leveraging international resources in areas such as research, pre-marketreviews and risk analysis to address important regulatory issues of local, nationaland international concern; and(ii) contributing to the base of information used by regulatory departments for identifying, assessing and managing risks.(b) Building trust, deepening mutual understanding of regulatory governance andobtaining from each other the benefit of expertise and perspective to:(i) improve the planning and development of regulatory proposals;(ii) promote transparency and predictability in the development andestablishment of regulations;(iii) enhance the efficacy of regulations;(iv) identify alternative instruments;(v) recognize the associated impacts of regulations;(vi) avoid unnecessary regulatory differences; and(vii) improve regulatory implementation and compliance.(c) Facilitating bilateral trade and investment by:(i) building on previously existing co-operative arrangements;(ii) reducing unnecessary differences in regulation; and(iii) identifying new ways of working for co-operation in specific sectors.(d) Contributing to the improvement of competitiveness and efficiency of industry by:(i) minimizing administrative costs wherever possible;(ii) reducing duplicative regulatory requirements and consequential compliancecosts wherever possible; and


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(iii) pursuing compatible regulatory approaches including, if possible andappropriate, through:a). the application of regulatory approaches which are technology-neutral, and b). the recognition of equivalence or the promotion of convergence.

Article X.4 Regulatory Cooperation Activities

The Parties endeavour to fulfill the objectives set out in Article X.3 by undertaking regulatoryco-operation activities. These activities may include:1. Engaging in ongoing bilateral discussions on regulatory governance, including to:(a) discuss regulatory reform and its effects on the Canada-EU relationship;(b) identify lessons learned;(c) explore, if appropriate, alternative approaches to regulation; and(d) exchange experiences with regulatory tools and instruments, including regulatoryimpact assessments, risk assessment and compliance and enforcement strategies.2. Consulting with each other as appropriate and exchanging information during the regulatorydevelopment process. This consultation and exchange may occur throughout the regulatorydevelopment process, and should begin as early as possible in that process.3. Sharing non-public information to the extent that such information may be made available toforeign governments in accordance with the applicable rules of the Party.4. Sharing proposed technical or sanitary and phytosanitary regulations that may have an impacton trade with the other Party at as early a stage as possible so that comments and proposals for amendments may be taken into account,5. Providing, upon request by the other Party, copies of the proposed regulation, subject toapplicable privacy laws, and allowing sufficient time for interested parties to provide commentsin writing.6. Exchanging information about contemplated regulatory actions, measures or amendmentsunder consideration, at the earliest stage possible, in order to:(a) better understand the rationale behind regulatory choices, including instrumentchoice, and examine the possibilities for greater convergence on how to state theobjectives of regulations and how to define their scope. The interface betweenregulations, standards and conformity assessment should also be addressed in thiscontext;


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27. PROTOCOL ON THE MUTUAL ACCEPTANCE OF THE RESULTS OFCONFORMITY ASSESSMENTProtocol to the Comprehensive Economic and Trade Agreement between the EuropeanUnion and Canadaon the Mutual Acceptance of the Results of Conformity AssessmentArticle 1

Scope and exceptions

1. This Protocol applies to those categories of goods listed in Annex 1 for which a Partyrecognizes non-governmental bodies for the purpose of assessing conformity of goods with thatParty’s technical regulations.2. The Parties shall consult within three years of the entry into force of this Agreement witha view to broadening the scope of application of this Protocol, set out in Annex 1, to includeadditional categories of goods for which a Party has recognised non-governmental bodies for the purpose of assessing conformity of those goods with that Party’s technical regulations on or before the entry into force of this Agreement. Priority categories of goods for consideration areset out in Annex 2.3. The Parties shall give positive consideration to making this Protocol applicable toadditional categories of goods which may become subject to third-party conformity assessment by recognized non-governmental bodies pursuant to technical regulations adopted by either Partyafter the date of entry into force of this Agreement. To that end, the Party having adopted such atechnical regulation shall promptly notify the other Party in writing. If the other Party hasexpressed an interest in including a new category of goods in Annex 1 but the notifying Partydoes not agree to it, the notifying Party shall provide to the other Party, upon request, the reasonsthat justify its refusal to expand the scope of the Protocol.4. Where the Parties decide in accordance with paragraphs 2 or 3 to include additionalcategories of goods in Annex 1, they shall request the Committee on Trade in Goods, pursuant toArticle 18(c), to make recommendations to the Trade Committee to amend Annex 1.5. This Protocol does not apply to:(a) sanitary and phytosanitary measures as defined in Annex A of the SPSAgreement;(b) purchasing specifications prepared by a governmental body for production or consumption requirements of that body;(c) activities performed by non-governmental bodies on behalf of marketsurveillance or enforcement authorities for post-market surveillance and


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Article 5

Designation of Conformity Assessment Bodies

1. A Party shall designate a conformity assessment body by notifying the contact point of the other Party that it is designating that conformity assessment body, and by sending to thecontact point the information described in Annex 3 to this Protocol. The European Union shallallow Canada to use the European Union’s electronic notification tool for those purposes.2. Canada shall only designate a conformity assessment body that meets the followingconditions and shall take reasonable measures to ensure that the conditions continue to be met:(a) it meets the requirements set out in Article R17 of Annex I of

Decision768/2008/EC

, or the corresponding requirements in successor instrumentsexcept that establishment under national law shall be interpreted asmeaning Canadian law for the purposes of this Protocol;And,(b) Either:(i) it is accredited, by an accreditation body appointed by a Member State of the European Union, as competent to assess conformity with the EuropeanUnion technical regulations for which it is being designated;Or,(ii) it is accredited, by an accreditation body established in Canada that has been recognised pursuant either to Article 12 (Recognition of AccreditationBodies of the Other Party) or to Article 15 (Recognition of AccreditationBodies in the Areas of Telecommunications and ElectromagneticCompatibility), as competent to assess conformity with the European Uniontechnical regulations for which it is being designated.3. The Parties shall deem the applicable requirements of Article R17 of Annex I of

Decision768/2008/EC

to have been met where the conformity assessment body has been accredited pursuant to either procedure described in subparagraph 2(b) and the accreditation body requiresas a condition for granting the accreditation that the conformity assessment body meetsrequirements equivalent to the applicable requirements of Article R17 of Annex I of

Decision768/2008/EC

or the corresponding requirements in successor instruments.4. Should the European Union consider revising the requirements set out in Article R17 of Annex I of

Decision 768/2008/EC

, it shall duly consult Canada at the earliest stage of andthroughout the review process with a view to ensuring that conformity assessment bodies in theterritory of Canada could continue to meet any revised requirements on no less favourable termsthan conformity assessment bodies in the territory of the European Union.


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5. A Member State of the European Union shall only designate a conformity assessment body that meets the following conditions and shall take reasonable measures to ensure that theconditions continue to be met:(a) it is established in the territory of the Member State;And,(b) Either:(i) it is accredited, by an accreditation body recognized by Canada, as competent toassess conformity with the Canadian technical regulations for which it is beingdesignated;Or,(ii) it is accredited, by an accreditation body established in the European Union thathas been recognised pursuant either to Article 12 (Recognition of AccreditationBodies) or to Article 15 (Recognition of Accreditation Bodies in the Areas of Telecommunications and Electromagnetic Compatibility), as competent to assessconformity with the Canadian technical regulations for which it is beingdesignated.6. A Party may refuse to recognize a conformity assessment body that does not meet theconditions in paragraphs 2 or 5, as the case may be.

Article 6

Objections to the Designation of Conformity Assessment Bodies

1. A Party may object to the designation of a conformity assessment body, within 30 days of the notification by the other Party, if either:(a) the Party which designated the conformity assessment body failed to provide theinformation described in Annex 3 to this protocol;Or,(b) it has reasons to believe that the conditions described in paragraphs 2 or paragraph 5 of Article 5 (Designation of Conformity Assessment Bodies) have not been met by theconformity assessment body being designated.2. Following any subsequent transmission of information, a Party may object within 30 daysof the receipt of that information, if the information remains insufficient to demonstrate that thedesignated conformity assessment body meets the conditions described in paragraph 2 or paragraph 5 of Article 5 (Designation of Conformity Assessment Bodies).


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Article 7

Challenges to Designations of Conformity Assessment Bodies

1. A Party which has recognized a conformity assessment body under this Protocol maychallenge the competence of that conformity assessment body if:(a) the Party which designated the conformity assessment body failed, following anotification by the other Party of the non-conformity with applicable technicalregulations of a product that had been assessed as being in conformity with suchtechnical regulations by that conformity assessment body, to take the actions required by paragraph 3 of Article 11 (Market Surveillance, Enforcement and Safeguards);Or,(b) the Party has reasons to believe that the results of conformity assessment activities performed by that conformity assessment body do not provide sufficient assurancesthat the products assessed by it as being in conformity with applicable technicalregulations are in fact in conformity with these technical regulations.2. A Party which challenges the competence of a recognized conformity assessment bodyunder this Protocol shall immediately notify the Party which designated the conformityassessment body of the challenge, and of the reasons for the challenge.3. A Party which:(a) has challenged the competence of a recognized conformity assessment body under this Protocol;And,(b) has well-founded reasons to believe that the products assessed as in conformity withapplicable technical regulations by that conformity assessment body may fail toconform to its technical regulations;may refuse to accept the results of that conformity assessment body’s conformity assessmentactivities until the challenge is resolved or the recognizing Party has ceased to recognize theconformity assessment body in accordance with paragraph 5.4. The Parties shall cooperate and make reasonable efforts to resolve the challenge promptly.5. Without prejudice to paragraph 3, the recognizing Party may cease to recognize theconformity assessment body whose competence has been challenged if:


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(a) the Parties resolve the challenge by concluding that the recognizing Party has raisedvalid concerns as to the competence of the conformity assessment body;Or,(b) the Party which designated the conformity assessment body failed to complete theactions required by paragraph 3 of Article 11 (Market Surveillance, Enforcement andSafeguards) within 60 days after being notified pursuant to paragraph 1(a);Or both,(c) the recognizing Party objectively demonstrates to the other Party that the results of conformity assessment activities performed by that conformity assessment body donot provide sufficient assurance that the products assessed by it as being inconformity with the applicable technical regulations are in fact in conformity withthese technical regulations;And,(d) the challenge has not been resolved within 120 days after the Party that haddesignated the conformity assessment body has been notified of the challenge.

Article 8

Withdrawals of Conformity Assessment Bodies

1. A Party shall withdraw the designation, or modify the scope of the designation, asappropriate, of a conformity assessment body it has designated if it becomes aware that:(a) the conformity assessment body’s scope of accreditation has been reduced;Or,(b) the conformity assessment body’s accreditation lapses;Or,(c) the conformity assessment body no longer meets the other conditions in paragraphs 2or 5 of Article 5 (Designation of Conformity Assessment Bodies);Or,(d) the conformity assessment body no longer wishes, or is otherwise no longer competent or able, to assess conformity with the scope for which it was designated.The Party shall notify the other Party in writing.


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2. When a Party withdraws the designation or modifies the scope of the designation of aconformity assessment body owing to concerns about the competence or the continuedfulfillment by that conformity assessment body of the requirements and responsibilities to whichit is subject under Article 5 (Designation of Conformity Assessment Bodies), it shallcommunicate the reasons for its decision in writing to the other Party.3. When communicating with the other Party, a Party shall indicate the date as of which itconsiders that any of the concerns enumerated under paragraphs 1 or 2, as applicable, may haveapplied to the conformity assessment body.4. Without prejudice to paragraph 5 of Article 7 (Challenges to Designations of ConformityAssessment Bodies), the recognizing Party may immediately cease to recognize a conformityassessment body as competent if:(a) The conformity assessment body’s accreditation lapses;Or,(b) the conformity assessment body voluntarily withdraws its recognition;Or,(c) the designation of the conformity assessment body is withdrawn pursuant to this Article;Or,(d) the conformity assessment body ceases to be established on the territory of one of theParties;Or,(e) the recognizing Party ceases to recognize the accreditation body which accredits theconformity assessment body pursuant to Article 13 (Cessation of the Recognitionof Accreditation Bodies) or Article 14 (Challenges to the Recognition of AccreditationBodies).

Article 9

Acceptance of the Results of Conformity Assessment by Recognized Conformity Assessment Bodies

1. A Party shall accept the results of conformity assessment activities performed byconformity assessment bodies established in the other Party’s territory which it recognizes inaccordance with Article 3 (Recognition of Conformity Assessment Bodies) under conditions noless favourable than those applied to the results of conformity assessment activities performed by


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recognized conformity assessment bodies in its territory. Results shall be accepted regardless of the nationality and location of the supplier or manufacturer, or of the country of origin of the product for which the conformity assessment activities were performed.2. Where a Party has ceased to recognize a conformity assessment body established on theterritory of the other Party, it may cease to accept the results of conformity assessment activities performed by such a conformity assessment body from the date when it ceased to recognize thatconformity assessment body. Unless the Party has reasons to believe that the conformityassessment body established on the territory of the other Party was not competent to assessconformity of products with the technical regulations of the Party prior to the date when theParty ceased to recognize that conformity assessment body, the Party shall continue to accept theresults of conformity assessment activities performed by such a conformity assessment body prior to the date when the Party ceased to recognize the conformity assessment body, eventhough the products may have been placed on the market of the Party after that date.

Article 10

Acceptance of Results of Conformity Assessment by Canadian In-house Bodies

1. The European Union shall accept the results of conformity assessment activities performed by accredited in-house bodies established in Canada under conditions no less favourable thanthose applied to the results of conformity assessment activities performed by accredited in-house bodies established in the territory of one of the Member States of the European Union, provided that either of the following conditions are met:(a) the in-house body is accredited, by an accreditation body that has been appointed by oneof the Member States of the European Union, as competent to assess conformity withthose requirements;Or,(b) the in-house body is accredited, by an accreditation body that has been recognised pursuant to Article 12 (Recognition of Accreditation Bodies) or Article 15 (Recognitionof Accreditation Bodies in the Areas of Telecommunications and ElectromagneticCompatibility), as competent to assess conformity with those requirements.2. Results shall be accepted regardless of the country of origin of the product for which theconformity assessment activities were performed.

Article 11

Market Surveillance, Enforcement, and Safeguards

1. Except for customs procedures, a Party shall ensure that activities performed by marketsurveillance or enforcement authorities for the inspection or verification of conformity withapplicable technical regulations for products assessed by a recognized conformity assessment


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body established in the territory of the other Party or an in-house body which meetsthe conditions of Article 10 (Acceptance of Results of Conformity Assessment by Canadian In-house Bodies), are conducted under conditions no less favourable than those conducted withrespect to products assessed by conformity assessment bodies in the territory of the recognizingParty. The Parties shall co-operate as necessary in the conduct of such activities.2. A Party may take measures with respect to a product the placing or use of which on themarket may compromise the fulfillment of a legitimate objective, provided that those measuresare consistent with the provisions of this Agreement. These measures could include withdrawingsuch a product from the market, prohibiting its placement on the market or restricting itsmovement. A Party that takes such a measure shall promptly inform the other Party and provide,upon request of that other Party, its reasons for taking the measure.3. A Party shall, upon receipt of a written complaint by the other Party, supported byevidence, that products assessed by a conformity assessment body it designated do not complywith applicable technical regulations, promptly seek additional information from the designatedconformity assessment body, its accreditation body and relevant operators where necessary,investigate the complaint and provide a written reply to the complaint. A Party may take theseactions through an accreditation body.

Article 12

Recognition of Accreditation Bodies

1. A Party ("the recognizing Party") may, in accordance with the procedure described under paragraphs 2 and 3, recognise an accreditation body established in the territory of the other Party("the nominating Party") as competent to accredit conformity assessment bodies as, themselves,competent to assess conformity with the relevant technical regulations of the recognizing Party.2. The nominating Party may request that the other Party recognize an accreditation bodyestablished on its territory as competent by providing a notification to the recognizing Party withthe following information regarding the nominated accreditation body:(a) its name, address and contact details;(b) evidence that its authority is derived from the government;(c) whether it acts on a non-commercial and non-competitive basis;(d) evidence of its independence of the conformity assessment bodies it assesses andof commercial pressures, so as to ensure that no conflicts of interest withconformity assessment bodies occur;(e) evidence that it is organised and operated so as to safeguard the objectivity andimpartiality of its activities and the confidentiality of the information obtained;


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(f) evidence that each decision relating to the attestation of competence of conformity assessment bodies is taken by competent persons different from thosewho carried out the assessment;(g) the scope for which its recognition is sought;(h) evidence of its competence to accredit for such scope, referring to applicableinternational standards, guides and recommendations, and applicable European or Canadian standards, technical regulations and conformity assessment procedures;(i) evidence of the internal procedures it has set up to ensure efficient managementand appropriate internal controls, including the procedures in place for documenting the duties, responsibilities and authorities of personnel who couldaffect the quality of the assessment and of the attestation of competence;(j) evidence of the number of competent personnel at its disposal, which should besufficient for the proper performance of its tasks, and of the procedures in placefor monitoring the performance and competence of the personnel involved;(k) whether or not it is appointed for such scope in the territory of the nominatingParty;(l) evidence of its status as a signatory to the International Laboratory AccreditationCooperation (ILAC) or International Accreditation Forum (IAF) multilateralrecognition arrangements and to any related regional recognition arrangements;And,(m) any other information as may be agreed as necessary by the Parties.3. Differences may exist between the Parties’ standards, technical regulations andconformity assessment procedures. Where such differences exist, the recognizing Party mayseek to assure itself that a nominated accreditation body is competent to accredit conformityassessment bodies as competent to assess conformity with relevant technical regulations of therecognizing Party. The recognizing Party may assure itself based on:(a) a cooperation arrangement between the European and Canadian accreditationsystems;Or, in the absence of such an arrangement;(b) a cooperation arrangement between the nominated accreditation body and anaccreditation body recognised as competent by the recognizing Party.4. Pursuant to a request made under paragraph 2, and subject to paragraph 3, a Party shallrecognize a competent accreditation body established in the territory of the other Party under


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conditions no less favourable than those applied for the recognition of accreditation bodiesestablished in its territory.5. The recognizing Party shall respond within 60 days to a request made under the terms of paragraph 2, stating either,(a) that it recognises the nominating Party's accreditation body as competent to accreditconformity assessment bodies for the scope proposed;Or,(b) that it will recognize the nominating Party’s accreditation body as competent toaccredit conformity assessment bodies for the scope proposed following necessarylegislative or regulatory amendments. Such a response shall include an explanationof the amendments required and an estimate of the timeframe required for theamendments to come into force;Or,(c) that the nominating Party failed to provide the information described in paragraph 2.Such a response shall include a statement of what information is missing;Or,(d) that it does not recognize the nominated accreditation body as competent to accreditconformity assessment bodies for the scope proposed. Such a statement shall be justified in an objective and reasoned manner, and shall state explicitly the conditionsunder which recognition would be granted.6. Each Party shall publish the names of the accreditation bodies of the other Party that itrecognizes, and, for each such accreditation body that it recognizes, the scope of the technicalregulations for which it recognizes that accreditation body.

Article 13

Cessation of the Recognition of Accreditation Bodies

If a recognized accreditation body ceases to be a signatory of a multilateral or regionalarrangement identified in subparagraph 2(l) of Article 12 (Recognition of Accreditation Bodies),or of a cooperation arrangement of the type described in paragraph 3 of Article 12 (Recognitionof Accreditation Bodies), the Party may cease to recognize that accreditation body as competent,and any conformity assessment bodies recognized on the basis that they were accredited solely by that accreditation body.


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Article 14

Challenges to the Recognition of Accreditation Bodies

1. Without prejudice to Article 13 (Cessation of the Recognition of Accreditation Bodies),the recognizing Party may challenge the competence of an accreditation body that it hasrecognized under paragraph 5(a) or (b) of Article 12 (Recognition of Accreditation Bodies) onthe grounds that the accreditation body is no longer competent to accredit conformity assessment bodies as, themselves, competent to assess conformity with the relevant technical regulations of the recognizing Party. The recognizing Party shall immediately notify the nominating Party of the challenge and shall justify its reasons in an objective and reasoned manner.2. The Parties shall cooperate and make reasonable efforts to resolve the challenge promptly. If a cooperation arrangement between the European and Canadian accreditationsystems or bodies has been concluded pursuant to paragraph 3 of Article 12 (Recognition of Accreditation Bodies), then the Parties shall ensure that the European and Canadian accreditationsystems or bodies seek to resolve the challenge on behalf of the Parties.3. The recognizing Party may cease to recognize the nominated accreditation body whosecompetence has been challenged and any conformity assessment bodies recognized on the basisthat they were accredited solely by that accreditation body if:(a) the Parties, including through the efforts of the European and Canadian accreditationsystems, resolve the challenge by concluding that the recognizing Party has raised validconcerns as to the competence of the nominated accreditation body;Or both,(b) the recognizing Party objectively demonstrates to the other Party that the accreditation body is no longer competent to accredit conformity assessment bodies as, themselves,competent to assess conformity with the relevant technical regulations of the recognizingParty;And,(c) the challenge has not been resolved within 120 days after the nominated Party has beennotified of the challenge.

Article 15

Recognition of Accreditation Bodies in the Areas of Telecommunications and ElectromagneticCompatibility

1. For technical regulations related to telecommunications terminal equipment, informationtechnology equipment, apparatus used for radio communication, and electromagneticcompatibility, the accreditation bodies recognized by Canada shall include, from the date of entry into force of this Protocol:


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(a) for test laboratories, any national accreditation body of a Member State of theEuropean Union that is a signatory to the International Laboratory AccreditationCooperation (ILAC) Mutual Recognition Arrangement;And,(b) for certification bodies, any national accreditation body of a Member State of theEuropean Union that is a signatory to the International Accreditation forum (IAF)Multilateral Recognition Arrangement.2. For the technical regulations described in paragraph 1, the accreditation bodiesrecognized by the European Union shall include, from the date of entry into force of thisProtocol, the Standards Council of Canada, or its successor.

Article 16

Transition from the Mutual Recognition Agreement

The Parties agree that a conformity assessment body which had been designated under theMutual Recognition Agreement will automatically become a recognized conformity assessment body under this Protocol, on the date of entry into force of this Protocol.

Article 17

Communication

1. Each Party shall identify contact points responsible for communications with the other Party related to any matter arising under this Protocol.2. The contact points may communicate by electronic mail, video-conferencing or other means on which they decide.

Article 18

Management of the Protocol

The [Committee’s] functions include:(a) managing the implementation of this Protocol;(b) addressing any matter that a Party may raise related to this Protocol;(c) developing recommendations for amendments to this Protocol for consideration by the[CETA Trade Council];


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(d) taking any other step that the Parties consider will assist them in implementing thisProtocol;And,(e) reporting to the [CETA Trade Council] on the implementation of this Protocol, asappropriate.

Article 19

Other Provisions

The procedures of the Dispute Settlement Chapter of the CETA apply to this Protocol.

Article 20

Entry into Force

This Protocol shall enter into force on the date of entry into force of the CETA.


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ANNEX 1

Product Coverage

- Electrical and electronic equipment, including electrical installations and appliances,and related components- Radio and telecommunications terminal equipment;- Electromagnetic compatibility (EMC)- Toys;- [Construction products [for review by EU]];- Machinery, including parts, components, including safety components,interchangeable equipment, and assemblies of machines;- Measuring instruments;- Hot-water boilers, including related appliances;- [Equipment, machines, apparatus, devices, control components, protection systems,safety devices, controlling devices and regulating devices, and related instrumentationand prevention and detection systems for use in potentially explosive atmospheres(ATEX equipment) [for review by EU]];- [Equipment for use outdoors as it relates to noise emission in the environment[for review by EU]];- Recreational craft, including their components.


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ANNEX 2

Priority categories of goods for consideration for inclusion in Annex 1 pursuant to Article 1(2)

a) Medical devices including accessories b) Pressure equipment, including vessels, piping, accessories and assembliesc) Appliances burning gaseous fuels, including related fittingsd) Personal protective equipmente) Rail systems, subsystems and interoperability constituentsf) Equipment placed on board of a ship


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ANNEX 3

Information to be Included as part of a Designation

[To be reviewed by technical experts ahead of legal scrub]

The information that a Party must provide when designating a conformity assessment body is as follows:(a) In all cases:(i) the scope of designation (not to exceed that body’s scope of accreditation);(ii) the accreditation certificate and the related scope of accreditation;And,(iii) the body’s address and contact information;And,(b) when a Member State of the European Union designates a certification body,except for in regards to the technical regulations described in Article 15(Telecommunications and Electromagnetic Compatibility):(i) the certification body’s registered certification mark, including thequalifying statement

64

;And,(c) when a Member State of the European Union designates a conformity assessment body in regards to technical regulations described in Article 15(Telecommunications and Electromagnetic Compatibility):(i) in the case of a certification body:(A) its unique identifier

65

;(B) an application for recognition signed by the body in accordancewith CB-01 (Requirements for Certification Bodies), or itssuccessor;And,

64

The qualifying statement normally takes the form of a small “c” placed beside the certification body’s registeredcertification mark to indicate that a product conforms with applicable Canadian technical regulations.

65

A unique six-character identifier comprised of two letters (usually the ISO 3166 country code) followed by four numbers.


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(b) the date that the equivalent authority that issued the certificate last inspected themanufacturing facility;(c) the manufacturing processes and where relevant, medicinal products or drugs anddosage forms for which the facility is in compliance with good manufacturing practices;and(d) the validity period of the certificate of GMP compliance.4. If an importer, an exporter or a regulatory authority of a Party, requests a certificate of GMP compliance for a manufacturing facility that is certified by an equivalent authority of theother Party, then that other Party shall ensure that that equivalent authority issues a certificate of GMP compliance:(a) within 30 calendar days of the date that the certifying authority receives therequest for the certificate, if a new inspection is not required, and(b) within 90 calendar days of the date that the certifying authority receives therequest for the certificate, if a new inspection is required, and the manufacturing facility passes the inspection.

Article 5

Other Recognition of Certificates of GMP Compliance1. A Party may accept certificates of GMP compliance with respect to medicinal products or drugs that are not included under Annex II.2 (Medicinal Products or Drugs).2. A Party intending to accept certificates under paragraph 1 may determine the terms andconditions under which it will accept such certificates.

Article 6

Acceptance of Batch Certificates1. A Party shall accept a batch certificate issued by a manufacturer without re-control of that batch at import provided that:(a) the products in the batch were manufactured in a manufacturing facility that has been certified as compliant by an equivalent authority;(b) the batch certificate is consistent with the Content of the Batch Certificate for Medicinal Products of the

Internationally Harmonized Requirements for BatchCertification

.


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(c) the batch certificate is signed by the person responsible for releasing the batch for sale or supply; and2. Notwithstanding paragraph 1, nothing shall affect a Party’s right to conduct official batchrelease.3. The person responsible for releasing the batch:(a) of the finished medicinal product for sale or supply for manufacturing facilities inthe European Union, must be a “qualified person” as defined in article 48 of Directive2001/83/EC and article 52 of Directive 2001/82/EC.(b) for sale or supply of a drug for manufacturing facilities in Canada, the person incharge of the quality control department, as provided for by the Food and DrugsRegulations, Part C, Division 2, section C.02.014.

Article 7

On-Site Evaluation1. A Party has the right to conduct its own on-site evaluation of a manufacturing facility thathas been certified as compliant by an equivalent authority of the other Party.2. A Party wishing to exercise the right described in paragraph 1 shall notify the other Partyin writing prior to conducting its own on-site evaluation, and inform that other Party of the scopeof the on-site evaluation. The Party shall endeavour to notify the other Party in writing at least 30days before a proposed on-site evaluation, but may provide less notice in urgent situations. Thatother Party has the right to join the on-site evaluation of the Party.

Article 8

Inspections and On-Site Evaluations at the Request of a Party1. At the request of a Party, the other Party shall inspect a facility involved in themanufacturing process of a medicinal product or drug that is being imported into the territory of the requesting Party in order to verify that the facility is in compliance with good manufacturing practices.2. At the request of a Party, the other Party may conduct on-site evaluations based on theassessment of data contained in a product submission dossier. The Parties may exchange relevant product information with respect to a request to conduct an on-site evaluation in accordance withArticle 13 (Confidentiality).


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3. The Parties shall, through the Joint Sectoral Group, conclude a GMP AdministrativeArrangement to facilitate the effective implementation of this Protocol. The GMP AdministrativeArrangement shall include:(a) the Joint Sectoral Group Terms of Reference;(b) the Two Way Alert Programme;(c) the list of contact points responsible for matters arising under this Protocol;(d) the Components of the Information Sharing Process ;(e) the Components of a GMP Compliance Programme;(f) the Procedure for Evaluating New Regulatory Authorities; and(g) the Equivalence Maintenance Programme.4. The Joint Sectoral Group may modify the GMP Administrative Arrangement if itconsiders it necessary.5. At the request of the Parties, the Joint Sectoral Group shall review the Annexes to thisProtocol, and shall develop recommendations for amendments to these annexes for consideration by the Trade Committee.6. Pursuant to paragraph 5, the Joint Sectoral Group shall review the Operational Scope of Medicinal Products or Drugs under Annex II.2 with a view to including those medicinal productsor drugs listed in Annex II.1.[CAN: *Negotiators’ Note: the Parties agree to establish the Administrative Arrangement prior to the Agreement’s entry into force.]

Article 15

Fees1. For the purposes of this article, “fees” includes cost-recovery measures such as user fees,regulatory charges and amounts set under a contract.2. A Party shall have the right to determine any fees applicable to manufacturing facilities inits territory, including fees related to issuing Certificates of GMP Compliance and fees related toinspections or on-site evaluations.3. In case of an inspection or on-site evaluation conducted by one Party at the request of theother Party, the fees charged to a manufacturing facility must be consistent with paragraphs 1and 2.


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Article 16

Relationship to the CETAThis Protocol constitutes an integral part of the [CETA]. [COMMENT: this may becovered by provisions in the CETA]

Annex I

Applicable LegislationFor the European Union:Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on theCommunity code relating to medicinal products for human use (as amended);Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on theCommunity code relating to veterinary medicinal products (as amended);Directive 2001/20/EC of European Parliament and of the Council of 4 April 2001 on theapproximation of the laws, regulations and administrative provisions of the Member Statesrelating to the implementation of good clinical practice in the conduct of clinical trials onmedicinal products for human use;Regulation (EU) 536/2014 of 16 April 2014 on clinical trials on medicinal products for humanuse, and repealing Directive 2001/20/ECCommission Directive 2003/94/EC of 8 October 2003 laying down the principles and guidelinesof good manufacturing practice in respect of medicinal products for human use andinvestigational medicinal products for human use;Commission Directive 91/412/EEC of 23 July 1991 laying down the principles and guidelines of good manufacturing practice for veterinary medicinal products;Current version of the Guide to good manufacturing practices contained in volume IV of Rulesgoverning medicinal products in the European Union and compilation of the community procedures on inspections and exchange of information;For Canada:

Food and Drugs Act

, R.S.C. 1985, c. F-27.

Kommentiert [MM-17]:

HCLS/JLI/JLT: this provision to bediscussed during the legal scrub.


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29. DIALOGUES AND BILATERAL COOPERATION

Chapter X – Dialogues and Bilateral CooperationArticle X.01: Basis of Cooperation

1. Building on their well-established partnership and shared values, the Parties agree to developtheir cooperation on issues of common interest. Their efforts will in particular be aimed at:(a) Strengthening bilateral cooperation on biotechnology through the bilateral Dialogue onBiotech Market Access Issues;(b) Fostering and facilitating dialogue and exchange of information on issues related to tradein forest products;(c) Establishing a forum for an ad hoc dialogue and cooperation on matters related to rawmaterials;(d) Encouraging enhanced cooperation on science, technology, research and innovationissues.2. Unless otherwise provided for in this Agreement, dialogues shall take place, at an appropriate level, atthe request of either Party or of the CETA Joint Committee and without undue delay. They shall beco-chaired by representatives of Canada and the European Union. The Parties shall agree on themeeting schedules and set agendas for the dialogues.3. The Parties shall inform the CETA Joint Committee of the schedules and agendas of the dialoguessufficiently in advance of meetings. The Parties shall report to the CETA Joint Committee on theresults and conclusions of the dialogues as appropriate or on request. The creation or existence of adialogue shall not prevent either Party from bringing any matter directly to the CETA JointCommittee.4. The CETA Joint Committee may decide to change or undertake the task assigned to a dialogue or dissolve any dialogue.

Article X.02: Future Areas for Bilateral Cooperation

1. Further to the areas of bilateral cooperation identified in Article X.01 the Parties, by consent of the Trade Council, may agree to other areas for bilateral cooperation under this Agreement.

Article X.03: Bilateral Cooperation on Biotechnology

1. The Parties agree that cooperation and information exchange on issues related to biotechnology products are of mutual interest. Such cooperation and exchange of information will take place in the bilateral Dialogue on Biotech Market Access Issues which was established as part of the Mutually AgreedSolution reached on 15 July, 2009 between Canada and the European Union following the WTO dispute

European Communities – Measures Affecting the Approval and Marketing of Biotech Products

(WT/DS292). The dialogue covers any relevant issues of mutual interest to Canada and the EU, including,among others:(a) Biotechnology product approvals in the territory of Canada or the EU as well as, whereappropriate, forthcoming applications of commercial interest to either side;(b) the commercial and economic outlook for future approvals of biotechnology products;(c) any trade impact related to asynchronous approvals of biotechnology products or theaccidental release of unauthorised products, and any appropriate measures in this respect;


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(d) any biotech-related measures that may affect trade between Canada and the EU, includingmeasures of EU Member States;(e) any new legislation in the field of biotechnology; and(f) best practices in the implementation of legislation on biotechnology.2. The Parties also note the importance of the following shared objectives with respect to cooperation inthe field of biotechnology:(a) exchanging information on policy, regulatory and technical issues of common interest related to a product of biotechnology; and in particular information on their respective systems and processesfor risk assessment for taking a decision on the use of a genetically modified organism;(b) promoting efficient science-based approval processes for products of biotechnology;(c) cooperating internationally on issues related to biotechnology such as low level presence of genetically modified organisms;(d) engaging in regulatory cooperation to minimize adverse trade impacts of regulatory practicesrelated to biotechnology products.

Article X.04: Bilateral Dialogue on Forest Products

1. The Parties agree that dialogue, cooperation and exchange of information and views on relevant laws,regulations, policies and sector issues of importance to the production, trade, and consumption of forest products are of mutual interest. The Parties agree to carry out such dialogue, cooperation and exchange inthe Bilateral Dialogue on Forest Products including on:(a) the development, adoption and implementation of relevant laws, regulations, policies and standards,and testing, certification and accreditation requirements and their potential impact on trade in forest products between the Parties;(b) initiatives of the Parties related to sustainable management of forests and forest governance;(c) mechanisms to assure the legal and/or sustainable origin of forest products;(d) access for forest products to the EU, Canada, or third-country markets;(e) perspectives on multilateral and plurilateral organizations and processes in which they participatewhich seek to promote sustainable forest management and/or combat illegal logging;(f) issues referenced in Article X (Trade in Forest Products) of the Trade and Environment Chapter; and(g) any other issue as may be agreed upon by the Parties.2. The Parties agree that the Bilateral Dialogue on Forest Products shall meet within the first year of theentry into force of this Agreement, and thereafter in accordance with Article X.01(2) of this Chapter [Dialogues and Cooperation].3. The Parties agree that discussions taking place in the Bilateral Dialogue on Forest Products can informdiscussions in the Sustainable Development Committee.


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31. TRANSPARENCY

TRANSPARENCY

Section A- Publication, Notification and Administration of LawsArticle X.01: Publication

1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or made available in such a manner as to enable interested persons and the other Party to becomeacquainted with them.2. To the extent possible, each Party shall:(a) publish in advance any such measure that it proposes to adopt; and(b) provide interested persons and the other Party a reasonable opportunity tocomment on such proposed measures

.Article X.02: Notification and Provision of Information

1. To the extent possible, on request of the other Party, a Party shall promptly provideinformation and respond to questions pertaining to any existing or proposed measurematerially affecting the operation of this Agreement, whether or not the other Party has been previously notified of that measure.2. A notification or information provided under this Article is without prejudice for the purposes of determining whether the measure is consistent with this Agreement

.Article X.03: Administrative Proceedings

In order to administer a measure of general application affecting matters covered by thisAgreement, in a consistent, impartial and reasonable manner, each Party shall ensure that in itsadministrative proceedings applying measures referred to in Article X.01 (Publication) to particular persons, goods or services of the other Party in specific cases:(a) whenever possible, a person of the other Party who is directly affected by a proceeding is given reasonable notice, in accordance with domestic procedures,when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding isinitiated and a general description of the issues in controversy;


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(b) a person referred to in subparagraph (a) is afforded a reasonable opportunity to present facts and arguments in support of its position prior to any finaladministrative action, when permitted by time, the nature of the proceeding, andthe public interest; and,(c) its procedures are in accordance with its domestic law

.Article X.04: Review and Appeal

1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunalsor procedures for the purpose of the prompt review and, where warranted, correction of finaladministrative actions regarding matters covered by this Agreement. Each Party shall ensure thatits tribunals are impartial and independent of the office or authority entrusted with administrativeenforcement and that they do not have any substantial interest in the outcome of the matter.2. Each Party shall ensure that, in its tribunals or procedures, the parties to the proceedingare provided with the right to:(a) a reasonable opportunity to support or defend their respective positions; and(b) a decision based on the evidence and submissions of record or, where required bydomestic law, the record compiled by the administrative authority.3. Each Party shall ensure, subject to appeal or further review as provided in its domesticlaw, that such decisions are implemented by, and govern the practice of, the offices or authoritieswith respect to the administrative action at issue

.Article X.05: Cooperation on Promoting Increased Transparency

The Parties agree to cooperate in bilateral, regional and multilateral fora on ways to promote transparency in respect of international trade and investment.

Article X-06: Definitions

For purposes of this Section:

administrative ruling of general application

means an administrative ruling or interpretationthat applies to all persons and fact situations that fall generally within its ambit and thatestablishes a norm of conduct but does not include:(a) a determination or ruling made in an administrative or quasi-judicial proceedingthat applies to a particular person, good or service of the other Party in a specificcase; or (b) a ruling that adjudicates with respect to a particular act or practice.


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32. EXCEPTIONS

EXCEPTIONS

Negotiators’notefor legal scrubbing: Confirmcoherenceof theexceptionsanddefinitionsinthis chapter with theother chaptersof theAgreement.

Article X.01: Definitions


competition authority

means:(a) for Canada, the Commissioner of Competition or a successor notified to the other partythrough the Coordinators; and(b) for the European Union, the Commission of the European Union as to itsresponsibilities pursuant to the competition laws of the European Union.

competition laws

means:(a) for Canada, the

Competition Act

; and(b) for the European Union, Articles 101, 102 and 106 of the Treaty on theFunctioning of the European Union ("TFEU"), Council Regulation (EC) No139/2004 on the control of concentrations between undertakings, and their implementing regulations or amendments.

cultural industries

means a person engaged in:(a) the publication, distribution or sale of books, magazines, periodicals or newspapers in print or machine-readable form, except when printing or typesetting any of the foregoingis the only activity;(b) the production, distribution, sale or exhibition of film or video recordings;(a) the production, distribution, sale or exhibition of audio or video music recordings;(b) the publication, distribution or sale of music in print or machine-readable form; or (c) radiocommunications in which the transmissions are intended for direct reception bythe general public, and all radio, television and cable broadcasting undertakings andall satellite programming and broadcast network services.


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information protected under its competition laws

means:(a) for Canada, information within the scope of Section 29 of the

Competition Act

,R.S. 1985, c.34, or any successor provision; and(b) for the European Union this means information within the scope of Article 28 of Council Regulation (EC) No. 1/2003 of 16 December 2002 on the implementationof the rules on competition laid down in Articles 81 and 82 of the Treaty or Article 17 of Council Regulation No 139/2004 on the control of concentrations between undertakings, or any successor provisions.

residence

means residence for tax purposes;

tax convention

means a convention for the avoidance of double taxation or other internationaltaxation agreement or arrangement; and

tax

and

taxation measure

includes an excise duty, but does not include:

(a) a “customs duty”, or (b) a measure listed in exceptions (b), (c), or (d) in the definition of “customs duty” in Article 1.01(Initial Provisions and General Definitions – Definitions of General Application).

Article X.02: General Exceptions

1. For the purposes of Chapters X through Y and Chapter Z (National Treatment andMarket Access for Goods, Rules of Origin, Origin Procedures, Customs and Trade Facilitation,Wines and Spirits, Sanitary and Phytosanitary Measures, Investment Section 2 (Establishmentof Investments) and Investment Section 3 (Non-discriminatory Treatment)), GATT 1994Article XX is incorporated into and made part of this Agreement. The Parties understand thatthe measures referred to in GATT 1994 Article XX (b) include environmental measuresnecessary to protect human, animal or plant life or health

.

The Parties further understand thatGATT 1994 Article XX (g) applies to measures for the conservation of living and non-livingexhaustible natural resources.

Negotiators’Notefor legal scrubbing: Theapplication of GATT ArticleXX tovarious CETAchapterswill needtobereviewedin lightof theactual contentof thesechapters. Textwill alsoneedtoberevisedtoreflectthefactthattheRules of OriginandWinesandSpirits textsarenotChapters.

2. For the purposes of Chapters X, Y, and Z (Cross-Border Trade in Services,Telecommunications, and Temporary Entry and Stay of Natural Persons for BusinessPurposes, Investment Section 2 (Establishment of Investments) and Investment Section 3 (Non-Discriminatory Treatment), a Party may adopt or enforce a measure necessary:


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(a) to protect public security or public morals or to maintain public order ( x );(b) to protect human, animal or plant life or health;(c) to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to:(i) the prevention of deceptive and fraudulent practices or to deal with the effects of adefault on contracts;(ii) the protection of the privacy of individuals in relation to the processing anddissemination of personal data and the protection of confidentiality of individual recordsand accounts;(iii) safety;(x) The public security and public order exceptions may be invoked only where a genuineand sufficiently serious threat is posed to one of the fundamental interests of society.

Article X.03: Temporary safeguard measures with regard to capital movements andpayments

Where, in exceptional circumstances, capital movements and payments, including transfers,cause or threaten to cause serious difficulties for the operation of the economic and monetaryunion of the European Union, safeguard measures that are strictly necessary and do notconstitute a means of arbitrary or unjustified discrimination between a Party and a non-Partymay be taken by the European Union with regard to capital movements and payments, includingtransfers, for a period not exceeding six months. The European Union shall inform Canadaforthwith and present, as soon as possible, a time schedule for the removal of such measures.

Article X.04: Restrictions in Case of Balance of Payments and External FinancialDifficulties

1. Where Canada or a Member State of the European Union that is not a member of theEuropean Monetary Union experiences serious balance-of-payments or external financialdifficulties, or threat thereof, it may adopt or maintain restrictive measures with regard tocapital movements or payments, including transfers.2. Measures referred to in paragraph 1 shall:a) not treat a Party less favourably than a non-Party in like situations; b) be consistent with the Articles of the Agreement of the International MonetaryFund, as applicable;c) avoid unnecessary damage to the commercial, economic and financial interests of any other Party;d) be temporary and phased out progressively as the situation specified in paragraph1 improves and not exceed six months; however, if extremely exceptionalcircumstances arise such that a Party seeks to extend such measures beyond a period of six months , it will consult in advance with the other Party concerningthe implementation of any proposed extension.


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(a) dispute settlement proceedings under the WTO Agreement are deemed to beinitiated by a Party’s request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputescontained in Annex 2 of the WTO Agreement (hereinafter referred to as the“DSU”); and(b) dispute settlement proceedings under this Chapter are deemed to be initiated by aParty’s request for the establishment of an arbitration panel under Article 14.4.1.4. Nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the DSB. A Party may not invoke the WTO Agreement to preclude the other Party from suspending obligations under this Chapter.

SECTION 2CONSULTATIONS AND MEDIATIONARTICLE 14.4: CONSULTATIONS

1. A Party may request in writing consultations with the other Party regarding any matter referred to in Article 14.2.2. The requesting Party shall transmit the request to the responding Party, and shall set outthe reasons for the request, including the identification of the specific measure at issueand an indication of the legal basis for the complaint.3. Subject to paragraph 4, the disputing Parties shall enter into consultations within 30 daysof the date of receipt of the request by the responding Party. Consultations shall take place in the territory of the responding Party unless the Parties agree otherwise.4. In cases of urgency, including those involving perishable or seasonal goods or servicesthat rapidly lose their trade value, consultations shall commence within 15 days of thedate of receipt of the request by the responding Party.5. The disputing Parties shall make every attempt to arrive at a mutually satisfactoryresolution of the matter through consultations. To this end, each disputing Party shall:(a) provide sufficient information to enable a full examination of the matter at issue;(b) protect any confidential or proprietary information exchanged in the course of consultations as requested by the Party providing the information; and(c) make available the personnel of its government agencies or other regulatory bodies who have expertise in the matter subject to the consultations.6. Consultations are confidential and without prejudice to the rights of the disputing Partiesin proceedings under this Chapter.


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7. Consultations may be held in person or by any other means agreed to by the disputingParties.

ARTICLE 14.5: MEDIATION

The Parties may have recourse to mediation, with regards to measures as set out in Article14.2 where the measures adversely affect trade and investment between the Parties.Mediation Procedures are set out in Annex III of this Chapter.

SECTION 3DISPUTE SETTLEMENT PROCEDURESSUB-SECTION 1 – DISPUTE SETTLEMENT PROCEDURESARTICLE 14.6: INITIATION OF THE DISPUTE SETTLEMENT PROCEDURE

1. Unless the disputing Parties agree otherwise, if a matter referred to in Article 14.4 has not been resolved within:(a) 45 days of the date of receipt of the request for consultations; or (b) 25 days of the date of receipt of the request for consultations for mattersreferred to in Article 14.4(4);the requesting Party may refer the matter to a dispute settlement panel by providingwritten notice to the responding Party.2. In the notice referred to in sub-paragraph 1, the requesting Party shall identify thespecific measure at issue and it shall explain how such measure constitutes a breach of the provisions referred to in Article 14.2.

ARTICLE 14.7: COMPOSITION OF THE DISPUTE SETTLEMENT PANEL

1. The panel shall comprise three individuals.2. The Parties shall consult with a view to reaching an agreement on the composition of thearbitration panel within 10 working days of the date of receipt by the responding Party of the request for the establishment of an arbitration panel.3. In the event that the Parties are unable to agree on the composition of the arbitration panel within the time frame laid down in paragraph 2, either Party may request the Chair of the [CETA institutional body], or the Chair's delegate, to draw by lot the members of the arbitration panel from the list established under [Article 14.

6bis

]. One member shall be drawn from sub-list of the complaining Party, one from the sub-list of the respondingParty and one from the sub-list of chairperson. If the Parties have agreed on one or moreof the members of the arbitration panel, any remaining members shall be selected by thesame procedure in the applicable sub-list of panellists. If the Parties have agreed on a


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member of the arbitration panel, other than the chairperson, who is not a national of either Party, the chairperson and other member shall be selected from the sub-list of chairpersons.4. The Chair of the [CETA institutional body], or the Chair's delegate, shall select thearbitrators as soon as possible and normally within five working days of the requestreferred to in paragraph 3 by either Party. The Chair, or the Chair’s delegate, shall give areasonable opportunity to representatives of each Party to be present when lots are drawn.[One of the chairpersons can perform the selection by lot alone if the other chairpersonwas informed about the date, time and place of the lot and did not accept to participate inthe lot within five working days of the request referred to in paragraph 3]5. The date of establishment of the arbitration panel shall be the date on which the last of the three arbitrators is selected.6. Should the list provided for in Article 14.8 not be established or not contain sufficientnames at the time a request is made pursuant to paragraph 3 the three arbitrators shall bedrawn by lot from the individuals who have been proposed by one or both of the Partiesin accordance with paragraph 1 of Article 14.8 [list of arbitrators].7. Replacement of arbitrators shall take place only for the reasons and according to the procedures detailed in rules 22 to 26 of the Rules of Procedure.

ARTICLE 14.8 – Lists of arbitrators

1. The [CETA institutional body] shall, at its first meeting after the entry into force of thisAgreement, establish a list of at least 15 individuals, chosen on the basis of objectivity,reliability and sound judgment, who are willing and able to serve as arbitrators. The listshall be composed of three sub-lists: one sub-list for each Party and one sub-list of individuals who are not nationals of either Party to act as chairpersons. Each sub-list shallinclude at least five individuals. The [CETA institutional body] may review the list at anytime and shall ensure that the list conforms with this article.2. The arbitrators must have specialised knowledge of international trade law. Theindividuals acting as chairpersons must also have experience as counsel or panelist indispute settlement proceedings on subject matters within the scope of this Chapter.Arbitrators shall be independent, serve in their individual capacities and not takeinstructions from any organisation or government, or be affiliated with the government of any of the Parties, and shall comply with the Code of Conduct annexed to this Chapter.

ARTICLE 14.9: INTERIM PANEL REPORT

1. The panel shall present to the disputing Parties an interim report within [150] days after the last panel member is appointed. The report shall contain:a) findings of fact; and b) determinations as to whether the responding Party has conformed with itsobligations under this Agreement.

Kommentiert [AL23]:

EU proposal made on 14 March 2014.Canada and EU agreed on checking the numbering and references toChair/chairpersons during legal scrubbing.


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2. Each Party may submit written comments to the panel on the interim report, subject toany time limits set by the panel. After considering any such comments, the panel may:a) reconsider its report; or b) make any further examination that it considers appropriate.3. Notwithstanding any other provision of this Chapter, the interim report of the panel shall be confidential.

ARTICLE 14.10: FINAL PANEL REPORT

1. Unless the disputing Parties agree otherwise, the panel shall issue a report inaccordance with the provisions of this Chapter. The ruling shall set out the findings of fact, the applicability of the relevant provisions of this Agreement and the basicrationale behind any findings and conclusions that it makes. The ruling of thearbitration panel shall be binding on the Parties.2. The panel shall present to the Parties a final report within 30 days of presentation of the interim report.3. Each Party shall make publicly available the final report of the panel after it is presented to the disputing Parties, subject to rule 40(confidentiality).4. In cases of urgency, including those involving perishable or seasonal goods or services that rapidly lose their trade value, the arbitration panel and the parties shallmake every effort to accelerate the proceedings to the greatest extent possible. ThePanel shall aim at presenting an interim report to the parties within 75 days after thelast panel member is appointed, and a final report within 15 days of the presentationof the interim report. Upon request of a party, the arbitration panel shall make a preliminary ruling within 10 days of the request on whether it deems the case to beurgent.5. The panel shall interpret the provisions referred to in Article 14.2 in accordance withcustomary rules of interpretation of public international law, including those set out inthe

Vienna Convention on the Law of Treaties

. The panel shall also take into accountrelevant interpretations in reports of Panels and the Appellate Body adopted by theWTO DSB. The rulings of the arbitration panel cannot add to or diminish the rightsand obligations provided for in the provisions referred to in Article 14.2.


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SUB-SECTION 2: COMPLIANCEARTICLE 14.11: Compliance with the arbitration panel ruling

The responding Party shall take any measure necessary to comply with the arbitration panel ruling. No later than 20 days after the receipt of the arbitration panel ruling by theParties, the responding Party shall inform the other party and the [institutional body] of its intentions in respect of this.

ARTICLE 14.12: The reasonable period of time for compliance

1. If immediate compliance is not possible, no later than 20 days after the receipt of thenotification of the arbitration panel ruling by the Parties, the responding Party shall notifythe complaining Party and the [institutional body] of the time it will require for compliance (reasonable period of time).2. In the event of disagreement between the Parties on the reasonable period of time inwhich to comply with the arbitration panel ruling, the complaining Party shall, within 20days of the receipt of the notification made under paragraph 1 by the responding Party,request in writing the arbitration panel to determine the length of the reasonable period of time. Such request shall be notified simultaneously to the other Party and to the[institutional body]. The arbitration panel shall notify its ruling to the Parties and to the[institutional body] within 30 days from the date of submission of the request.3. The reasonable period of time may be extended by mutual agreement of the Parties.4. At any time after the midpoint in the reasonable period of time and at the request of thecomplaining party, the responding party shall make itself available to discuss the steps itis taking to comply with the arbitration panel ruling.5. The responding Party shall notify the other Party and the [institutional body] before theend of the reasonable period of time of any measure that it has taken to comply with thearbitration panel ruling.

ARTICLE 14.13: Temporary remedies in case of non-compliance

1. If:a) the responding Party fails to notify its intention to comply with the panel ruling under Article 14.11 or the time it will require for compliance under Article 14.12.1, or b) at the expiry of the reasonable period of time:- the responding Party fails to notify any measure taken to comply with the arbitration panel ruling, or


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selection of the new chairperson shall be made within five working days of the date of the submission of the request referred to in this paragraph.If these persons cannot reach a decision within 10 days of the matter being referred tothem, the procedures set out in Article 14.7 shall apply.26. The arbitration panel proceedings shall be suspended for the period taken to carry out the procedures provided for in rules 22, 23, 24 and 25.HEARINGS27. The chairperson shall fix the date and time of the hearing in consultation with the Partiesand the other members of the arbitration panel, and confirm this in writing to the Parties.This information shall also be made publicly available by the Party in charge of thelogistical administration of the proceedings, subject to rule 40 (confidentiality).28. Unless the Parties agree otherwise, the hearing shall be held in Brussels if thecomplaining Party is Canada and in Ottawa if the complaining Party is the EuropeanUnion.29. As a general rule there should be only one hearing. The panel may on its own initiative or on the request of a Party convene one additional hearing when the dispute involves issuesof exceptional complexity. No additional hearing shall be convened for the proceduresestablished under Articles 14.13 and 14.14, except in the case of a disagreement oncompliance and equivalence.30. All arbitrators shall be present during the entirety of the hearing.31. The following persons may attend the hearing, irrespective of whether the proceedingsare open to the public or not:(a) representatives of the Parties;(b) advisers to the Parties;(c) administrative staff, interpreters, translators and court reporters; and(d) arbitrators’ assistants.Only the representatives of and advisers to the Parties may address the arbitration panel.32. No later than five working days before the date of a hearing, each Party shall deliver tothe arbitration panel and to the other Party a list of the names of persons who will makeoral arguments or presentations at the hearing on behalf of that Party and of other representatives or advisers who will be attending the hearing.33. The arbitration panel shall conduct the hearing in the following manner, ensuring that thecomplaining Party and the responding Party are afforded equal time:

Argument

(a) argument of the complaining Party


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(b) argument of the responding Party

Rebuttal Argument

(a) argument of the complaining Party(b) counter-reply of the responding Party34. The arbitration panel may direct questions to either Party at any time during the hearing.35. The arbitration panel, after having received the comments of the Parties, shall issue to the parties a final transcript of each hearing.36. Each Party may deliver to the arbitrators and to the other Party a supplementary writtensubmission concerning any matter that arose during the hearing within 10 working daysof the date of the hearing.QUESTIONS IN WRITING37. The arbitration panel may at any time during the proceedings address questions in writingto one or both Parties. Each of the Parties shall receive a copy of any questions put by thearbitration panel.38. Each Party shall also provide the other Party with a copy of its written response to thequestions of the arbitration panel. Each Party shall be given the opportunity to providewritten comments on the other Party’s reply within five working days of the date of receipt.TRANSPARENCY AND CONFIDENTIALITY39 Subject to paragraph 40, each party shall make its submissions publicly available and,unless the Parties decide otherwise, the hearings of the arbitration panel shall be open tothe public.40. The arbitration panel shall meet in closed session when the submission and arguments of a Party contain confidential business information. The Parties shall maintain theconfidentiality of the arbitration panel hearings where the hearings are held in closedsession. Each Party and its advisers shall treat as confidential any information submitted by the other Party to the arbitration panel which that Party has designated as confidential.Where a Party’s submission to the arbitration panel contains confidential information,that Party shall also provide, within 15 days, a non-confidential version of the submissionthat could be disclosed to the public.EX PARTE CONTACTS41. The arbitration panel shall not meet or contact a Party in the absence of the other Party.


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42. No member of the arbitration panel may discuss any aspect of the subject matter of the proceedings with a Party or the Parties in the absence of the other arbitrators.INFORMATIONAND TECHNICALADVICE43. On request of a disputing Party, or on its own initiative, the panel may seek informationand technical advice from any person or body that it deems appropriate, subject to anyterms and conditions agreed by the Parties. Any information obtained in this manner must be disclosed to each Party and submitted for their comments.AMICUSCURIAE SUBMISSIONS44. Non-governmental persons established in a Party may submit amicus curiae briefs to thearbitration panel in accordance with the following paragraphs.45. Unless the Parties agree otherwise within five days of the date of the establishment of thearbitration panel, the arbitration panel may receive unsolicited written submissions, provided that they are made within 10 days of the date of the establishment of thearbitration panel, and in no case longer than 15 typed pages, including any annexes, andthat they are directly relevant to the issue under consideration by the arbitration panel.46. The submission shall contain a description of the person making the submission, whether natural or legal, including the nature of that person's activities and the source of that person's financing, and specify the nature of the interest that that person has in thearbitration proceeding. It shall be drafted in the languages chosen by the Parties inaccordance with Rules 49 and 50 of these Rules of Procedure.47. The arbitration panel shall list in its ruling all the submissions it has received thatconform to the above rules. The arbitration panel shall not be obliged to address in itsruling the arguments made in such submissions. The arbitration panel shall submit to theParties for their comments any submission it obtains under this rule.URGENTCASES48. In cases of urgency referred to in Article 14.10.4, the arbitration panel, after consultingthe Parties, shall adjust the time limits referred to in these rules as appropriate and shallnotify the Parties of such adjustments.TRANSLATION AND INTERPRETATION49. During the consultations referred to in Article 14.7.2, and no later than the meetingreferred to in Rule 9 of these Rules of Procedure, the Parties shall endeavour to agree ona common working language for the proceedings before the arbitration panel.50. If the Parties are unable to agree on a common working language, each Party shallarrange for and bear the costs of the translation of its written submissions into thelanguage chosen by the other Party. The responding Party shall arrange for theinterpretation of oral submissions into the languages chosen by the Parties.51. Arbitration panel rulings shall be issued in the language or languages chosen by theParties.


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52. Any costs incurred for translation of an arbitration ruling into the language or languageschose by the Parties shall be borne equally by the Parties.53. A Party may provide comments on the accuracy of the translation of any translatedversion of a document drawn up in accordance with these rules.CALCULATION OF TIME-LIMITS54. All time-limits laid down in this chapter including the limits for the arbitration panels tonotify their rulings, shall be counted in calendar days from the day following the act or fact to which they refer, unless otherwise specified.55. Where, by reason of the application of rule 7 of these Rules of Procedure, a Partyreceives a document on a date other than the date on which this document is received bythe other Party, any period of time that is calculated on the basis of the date of receipt of that document shall be calculated from the last date of receipt of that document.OTHER PROCEDURES56. These Rules of Procedure are also applicable to procedures established under Articles14.13 and 14.14. However, the time-limits laid down in these Rules of Procedure shall beadjusted in line with the special time-limits provided for the adoption of a ruling by thearbitration panel in those other procedures.57. In the event of the original panel, or some of its members, being unable to reconvene for the procedures established under Article 14.13 and 14.14, the procedures set out inArticle 14.7. The time limit for the notification of the ruling shall be extended by 15 days.


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ANNEX II

CODE OF CONDUCT FOR MEMBERS OF ARBITRATION PANELS AND MEDIATORSDEFINITIONS1. In this Code of Conduct:(a) "member" or “arbitrator” means a member of an arbitration panel effectivelyestablished under [Article 14.7];[(b) "mediator" means a person who conducts a mediation in accordance with [Article14.5];](c) "candidate" means an individual whose name is on the list of arbitrators referred toin Article [14.8] and who is under consideration for selection as a member of anarbitration panel under Article 14.7];(d) "assistant" means a person who, under the terms of appointment of a member,conducts, researches or provides assistance to the member;(e) "proceeding", unless otherwise specified, means an arbitration panel proceedingunder [Chapter 14 (Dispute Settlement)];(f) "staff", in respect of a member, means persons under the direction and control of themember, other than assistants.RESPONSIBILITIES TO THE PROCESS2. Every candidate and member shall avoid impropriety and the appearance of impropriety,shall be independent and impartial, shall avoid direct and indirect conflicts of interestsand shall observe high standards of conduct so that the integrity and impartiality of thedispute settlement mechanism is preserved. Former members must comply with theobligations established in paragraphs 16, 17, 18 and 19 of this Code of Conduct.DISCLOSURE OBLIGATIONS3. Prior to confirmation of her or his selection as a member of the arbitration panel under [Chapter 14 (Dispute Settlement)], a candidate shall disclose any interest, relationship or matter that is likely to affect his or her independence or impartiality or that mightreasonably create an appearance of impropriety or bias in the proceeding. To this end, acandidate shall make all reasonable efforts to become aware of any such interests,relationships and matters.4. Without limiting the generality of the foregoing, candidates shall disclose the followinginterests, relationships and matters:(1) any financial interest of the candidate:(a) in the proceeding or in its outcome, and


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(b) in an administrative proceeding, a domestic court proceeding or another panel or committee proceeding that involves issues that may bedecided in the proceeding for which the candidate is under consideration;(2) any financial interest of the candidate's employer, partner, businessassociate or family member (a) in the proceeding or in its outcome, and(b) in an administrative proceeding, a domestic court proceeding or another panel or committee proceeding that involves issues that may bedecided in the proceeding for which the candidate is under consideration;(3) any past or existing financial, business, professional, family or socialrelationship with any interested parties in the proceeding, or their counsel, or anysuch relationship involving a candidate's employer, partner, business associate or family member; and(4) public advocacy or legal or other representation concerning an issue indispute in the proceeding or involving the same goods.5. A candidate or member shall communicate matters concerning actual or potentialviolations of this Code of Conduct only to the [institutional body to be defined] for consideration by the Parties.6. Once selected, a member shall continue to make all reasonable efforts to become awareof any interests, relationships or matters referred to in paragraph 3 of this Code of Conduct and shall disclose them. The disclosure obligation is a continuing duty whichrequires a member to disclose any such interests, relationships or matters that may ariseduring any stage of the proceeding. The member shall disclose such interests,relationships or matters by informing the [institutional body to be defined], in writing, for consideration by the Parties.DUTIES OF MEMBERS7. Upon selection a member shall be available to perform and shall perform her or his dutiesthoroughly and expeditiously throughout the course of the proceeding, and with fairnessand diligence.8. A member shall consider only those issues raised in the proceeding and necessary for aruling and shall not delegate this duty to any other person.9. A member shall take all appropriate steps to ensure that his or her assistant and staff areaware of, and comply with, paragraphs 2, 3, 4, 5, 6, 17, 18 and 19 of this Code of Conduct.10. A member shall not engage in ex parte contacts concerning the proceeding.


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8. The procedure shall be terminated:(a) by the adoption of a mutually agreed solution by the Parties, on the date of adoption.(b) by a written declaration of the mediator, after consultation with the Parties, that further efforts at mediation would be to no avail;(c) by a written declaration of a Party after exploring mutually agreed solutions under themediation procedure and after having considered any advice and proposed solutions by themediator. Such declaration may not be issued before the period set out in Article 4.5 hasexpired; or (d) at any stage of the procedure by mutual agreement of the Parties.

S

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MPLEMENTATION

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UTUALLY

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OLUTION

1. Where the Parties have agreed to a solution, each Party shall take the measures necessaryto implement the mutually agreed solution within the agreed timeframe.2. The implementing Party shall inform the other Party in writing of any steps or measurestaken to implement the mutually agreed solution.

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ONFIDENTIALITY AND

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ELATIONSHIP TO

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ETTLEMENT

1. Unless the Parties agree otherwise, and without prejudice to Article 4(6), all steps of the procedure, including any advice or proposed solution, are confidential. However, any Party maydisclose to the public that mediation is taking place. The obligation of confidentiality does notextend to factual information already existing in the public domain.2. The mediation procedure is without prejudice to the Parties’ rights and obligations under the provisions on Dispute Settlement in this Agreement or any other agreement.3. Consultations under the Dispute Settlement Chapter are not required before initiating the


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ANNEX (Y)LIST OF EU MEMBER STATES BILATERAL INVESTMENT TREATIES WITHCANADA

Agreement between the Government of the Republic of Croatia and the Government of Canadafor the Promotion and Protection of Investments - signed on 03/02/1997.Agreement between the Czech Republic and Government of Canada for the Promotion andProtection of Investments - signed on 06/05/2009.Agreement between the Government of the Republic of Hungary and the Government of Canadafor the Promotion and Reciprocal Protection of Investments - signed on 03/10/1991.Agreement between the Government of the Republic of Latvia and the Government of Canadafor the Promotion and Protection of Investments - signed on 05/05/2009.Foreign Investment Insurance Agreement between Canada and Malta – signed on 24/05/1982.Agreement between the Government of the Republic of Poland and the Government of Canada for the Reciprocal Promotion and Protection of Investments - signed on 06/04/1990.Agreement between the Government of Romania and the Government of Canada for thePromotion and Reciprocal protection of investments – signed on 08/05/2009.Agreement between the Slovak Republic and the Government of Canada for the Promotion andProtection of Investments - signed on 20/07/2010.


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35. SERVICES AND INVESTMENTNote: Services and Investment Reservations are attached separately


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Andorra and San Marino

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36. Joint Declarations Concerning the Principality of Andorra and the Republic of SanMarino

JOINT DECLARATION concerning the Principality of Andorra

1. Products originating in the Principality of Andorra falling within Chapters 25 to 97 of theHarmonized System shall be accepted by Canada as originating in the EU within the meaning of this Agreement, provided that the customs union established by the Council Decision of 26 November 1990 on the conclusion of an agreement in the form of an exchange of letters betweenthe European Economic Community and the Principality of Andorra remains in force.2. The [Protocol/Chapter] on Rules of Origin shall apply mutatis mutandis for the purpose of defining the originating status of the above-mentioned products.

JOINT DECLARATION concerning the Republic of San Marino

1. Products originating in the Republic of San Marino shall be accepted by Canada as originating inthe EU within the meaning of this Agreement, provided that the Agreement on Cooperation andCustoms Union of 16 December 1991 concluded between the European Economic Communityand the Republic of San Marino remains in force.2. The [Protocol/Chapter] on Rules of Origin shall apply mutatis mutandis for the purpose of defining the originating status of the above-mentioned products.3. Paragraph 1 does not apply to products that were covered by the

Treaty establishing the European Coal and Steel Community

.

[Jointnegotiators note: Thisparagraph canberemovedupon confirmationbytheEU duringthelegal reviewthatitsCustoms Unionwith theRepublicof SanMarinocoversonadutyfreebasis tradeingoods thatwerecoveredbytheTreatyestablishing theEuropeanCoal andSteelCommunity].


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42. Understanding on Courier ServicesUnderstanding on article 1, paragraph 2 (e) of Chapter XX on Cross-border Trade inServices and article 1, paragraph 2 (a) of Chapter XX on Investment

The Parties confirm that courier services are subject to the provisions of Chapter XX on Cross- border Trade in Services and Chapter XX on Investment, subject to applicable reservations as setout in the Parties' schedules. For greater certainty, this does not include the grant of air trafficrights to courier service suppliers. Such rights are subject to the

Agreement on Air Transport between Canada and the European Community and its Member States

.
