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Canada-Honduras Free Trade Agreement

Chapter Twenty-Two : Exceptions

Article 22.1: Definitions

For the purposes of this Chapter:

competition authority means:

designated authority means:

information protected under its competition laws means:

international capital transactions means transactions “for the purpose of transferring capital” as the term is used in Article XXX of the Articles of Agreement of the International Monetary Fund, done at Washington on 27 December 1945 (“Articles of Agreement of the IMF”);

investor has the same meaning as in Article 10.1 (Investment – Definitions);

payments for current international transactions means “payments for current transactions” as defined under Article XXX of the Articles of Agreement of the IMF;

person engaged in a cultural industry means a person engaged in the following activities:

tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement;

taxation measures does not include:

Tribunal has the same meaning as in Article 10.1 (Investment – Definitions).

Article 22.2: General Exceptions

1. For the purposes of Chapters Three through Nine and Chapter Sixteen (National Treatment and Market Access for Goods, Rules of Origin, Customs Procedures, Trade Facilitation, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Emergency Action, and Electronic Commerce), Article XX of the GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XX(b) of the GATT 1994 include environmental measures necessary to protect human, animal, or plant life or health, and that Article XX(g) of the GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources.

2. For the purposes of Chapters Eleven, Twelve, Fourteen, and Sixteen (Cross Border Trade in Services, Telecommunications, Temporary Entry for Business Persons, and Electronic Commerce), Article XIV (a), (b) and (c) of GATS is incorporated into and made part of this Agreement mutatis mutandis. The Parties understand that the measures referred to in Article XIV (b) of GATS include environmental measures necessary to protect human, animal, or plant life or health.

3. For the purposes of Chapter Ten (Investment):

Article 22.3: National Security

This Agreement does not:

Article 22.4: Taxation

1. Except as set out in this Article, this Agreement does not apply to a taxation measure.

2. This Agreement does not affect the rights and obligations of a Party under a tax convention. In the event of inconsistency between this Agreement and a tax convention, the tax convention prevails.

3. If a provision with respect to a taxation measure under this Agreement is similar to a provision of a tax convention, the competent authorities identified in the tax convention shall use the procedural provision of that tax convention to resolve an issue that may arise under this Agreement.

4. Notwithstanding paragraphs 2 and 3:

5. Subject to paragraphs 2, 3, and 6:

6. Paragraph 5 does not:

7. Subject to paragraphs 2 and 3, and without prejudice to the rights and obligations of the Parties under Article 10.7(4) (Investment – Performance Requirements) applies to a taxation measure.

8. Notwithstanding paragraphs 2 and 3, Article 10.11 (Investment – Expropriation) applies to a taxation measure, but an investor may not invoke that Article as the basis for a claim under Article 10.19 (Investment – Claim by an Investor of a Party on its Own Behalf) or Article 10.20 (Investment – Claim by an Investor of a Party on Behalf of an Enterprise), if the designated authorities of the Parties have determined under this paragraph that a taxation measure is not an expropriation. The investor shall refer the issue of determining whether a measure is not an expropriation to the designated authorities of the Parties at the time that the investor gives notice under Article 10.21 (Investment – Notice of Intent to Submit a Claim to Arbitration). If, within a period of 6 months from the date of this referral, the designated authorities do not agree to consider the issue or, having decided to consider it, fail to decide that the measure is not an expropriation, the investor may submit its claim to arbitration under Article 10.23 (Investment – Submission of a Claim to Arbitration).

9. In order to give effect to paragraphs 1 to 3:

10. If an investor invokes Article 10.11 (Investment – Expropriation) as the basis for a claim under Article 10.19 (Investment – Claim by an Investor of a Party on Its Own Behalf) or Article 10.20 (Investment – Claim by an Investor of a Party on Behalf of an Enterprise), the designated authorities shall make a determination under paragraph 8 of whether a measure is an expropriation concurrently with a decision under paragraph 9(b) of whether the measure is a taxation measure.

11. The designated authorities seized of an issue under paragraphs 8 or 9 may modify the time period allowed to decide the issue.

12. This Agreement does not require a Party to furnish or allow access to information the disclosure of which would be contrary to the Party’s law protecting information concerning the taxation affairs of a taxpayer.

Article 22.5: Balance of Payments

1. This Agreement does not prevent a Party from adopting or maintaining a measure that restricts transfers if:

General Rules

2. As soon as practicable after a Party imposes a measure permitted by paragraph 1, the Party shall:

3. A measure permitted by paragraph 1 must:

4. A Party adopting or maintaining a measure referred to in paragraph 1 may give priority to services that are essential to its economic program, if:

Restrictions on Transfers other than transfers related to Cross-Border Trade in Financial Services

5. Restrictions imposed on transfers, other than on cross-border trade in financial services:

Restrictions on Cross-Border Trade in Financial Services

6. A Party imposing a restriction on cross-border trade in financial services:

7. In discussions under sub-paragraph 6(b), the Parties shall accept all statistical and other findings presented by the IMF relating to foreign exchange, monetary reserves, and balance of payments, and shall base their conclusions on the assessment by the IMF regarding the balance of payments and the external financial situation of the Party adopting the measures.

Article 22.6: Disclosure of Information

1. This Agreement does not require a Party to furnish or allow access to information that:

2. This Agreement does not require, in the course of dispute settlement procedures under this Agreement:

Article 22.7: Cultural Industries

This Agreement does not apply to a measure adopted or maintained by a Party with respect to a person engaged in a cultural industry, except as specifically provided for in Article 3.4 (National Treatment and Market Access for Goods – Tariff Elimination).

Article 22.8: World Trade Organization Waivers

If a right or obligation in this Agreement duplicates a right or obligation in the WTO Agreement, a measure adopted by a Party in conformity with a waiver decision adopted by the WTO pursuant to Article IX:3 of the WTO Agreement is also deemed to be in conformity with this Agreement, except as otherwise decided by the Parties. The conforming measure of either Party may not give rise to a claim under Section C of Chapter Ten (Investment – Settlement of Disputes between a Party and an Investor of the Other Party).

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