Consolided CETA Text

14. Domestic Regulation

Chapter XX Domestic Regulation

Article X.1: Scope and Definitions

1. This Chapter applies to measures adopted or maintained by a Party relating to licensing requirements 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 presence in 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 qualification requirements and procedures:

    • (a) pursuant to an existing non-conforming measure that is maintained by a Party as set out in 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, and cultural industries.

For the European Union: Health, education, and social services, gambling and betting services Footnote 1, the collection, purification, and distribution of water, as set out in the EU’s schedule to 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 any other economic activity.

"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 licensing requirements;

"Qualification requirements" are substantive requirements relating to competency, that must be complied with in order to obtain, amend or renew an authorisation;

"Qualification procedures" are administrative or procedural rules, that must be adhered to in order 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 local governments or authorities that grants an authorisation.

Article 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 public interest involved is not inconsistent with paragraph 2. c), provided that it is exercised consistently with the object of the applicable statute and not in an arbitrary manner, and that its exercise is not otherwise inconsistent with this Agreement, including Article X.2.4 of this Chapter.

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 competent authority determines that the conditions have been met, and once granted enters into effect without undue delay, in accordance with the terms and conditions specified therein.

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 prompt review of, and where justified, appropriate remedies for, administrative decisions affecting the supply of a service or the pursuit of any other economic activity. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, each Party shall ensure 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 possible and 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 be reasonable and commensurate with the costs incurred and shall not in themselves restrict the supply 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 contributions to universal service provision.

10. Each Party shall ensure that the procedures used by and the decisions of the competent authority in the authorisation process are impartial with respect to all applicants. The competent authority should reach its decision in an independent manner and in particular should not be accountable to any person supplying services or pursuing economic activities for which the authorisation 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 processing of an application without undue delay. Where possible, applications should be accepted in electronic format under similar conditions of authenticity as paper submissions.

12. Authenticated copies should be accepted, where considered appropriate, in place of original documents.

13. Each Party shall ensure that the processing of an application, including reaching a final decision, is completed within a reasonable timeframe from the submission of a complete application. Each Party should establish the normal timeframe for the processing of an application.

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 authority shall, within a reasonable period of time, informs the applicant, identify the additional information required to complete the application, and provide an opportunity to correct deficiencies.

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

Footnotes

Footnote 1

With the exception of MT.

Return to footnote 1 referrer

Disclaimer:

The complete text of the CETA agreement is presented here for information purposes. The text presented in this document is as it stands at the end of the negotiations between Canada and the EU. It will be subject to legal review, a process that will also involve formatting. Subsequent to the legal review and formatting, the complete text will become binding upon the completion of the ratification process by both Canada and the EU.