1.   A customs duty shall include any duty or charge of any kind imposed on or in connection with the importation of goods and any form of surtax or surcharge in connection with such importation, but shall not include:

(a)	charges equivalent to internal taxes levied on both imported and locally produced goods consistent with Article 20;

(b)	anti-dumping, countervailing or safeguard measures applied in accordance with the provisions of Title VI; and

(c)	fees or other charges imposed in accordance with Article 8.

2.   The basic customs duty to which the successive reductions are to be applied shall be that specified in each Party's tariff liberalisation schedule for each product.

1.   The classification of goods in trade covered by this Agreement shall be that set out in each Party's respective tariff nomenclature in conformity with the International Convention on the Harmonised Commodity Description and Coding System (HS).

2.   The Parties shall exchange all necessary information, within a period of three (3) months after a tariff modification or a change in the HS, on their applied customs duties and the corresponding nomenclatures with those products listed in Annexes I and II.

1.   For the purposes of this Part, the term ‘originating’ means qualifying as ‘originating’ under the applicable law of the importing Party (1) (2).

2.   The EPA Council established under Article 104 (hereinafter referred to as ‘the EPA Council’) shall, by decision, adopt a protocol governing the rules of origin at the latest five (5) years after the date of entry into force of this Agreement. Paragraph 1 of this Article shall cease to apply from the moment that such protocol becomes applicable.

3.   If at the end of the five-year period referred to in paragraph 2 the Parties have not adopted such protocol, the EPA Council shall assess the application of paragraph 1 and may decide to extend that five-year period.

1.   The Parties agree not to increase their applied customs duties for products subject to liberalisation under this Agreement, with the exception of measures adopted in accordance with Articles 48, 49 and 50.

2.   In order to preserve the prospect ofwider African regional integration processes, the Parties may decide in the EPA Council to modify the level of customs duties stipulated in Annexes II(a), II(b) and II(c) to this Agreement, which may be applied to a product originating in the EU upon its importation into the EAC Partner State(s). The Parties shall ensure that any such modification does not result in an incompatibility of this Agreement with the requirements of Article XXIV of GATT 1994.

1.   Customs duties shall be imposed once for goods originating in one Party and imported into the territory of the other Party.

2.   Any duty paid upon importation into an EAC Partner State shall be refunded fully for the goods that leave the EAC Partner State of first importation to another EAC Partner State. The duty shall be paid in the EAC Partner State of consumption of the goods.

3.   The Parties agree on cooperation to facilitate the movement of goods and simplify customs procedures.

1.   A Party shall not institute any new duties or taxes in connection with the exportation of goods to the other Party that are in excess of those imposed on like products destined for internal sale.

2.   Notwithstanding paragraph 1, the EAC Partner State(s) can impose, after notifying the EU, a temporary duty or tax in connection with the exportation of goods under the following circumstances:

(a)	to foster the development of domestic industry;

(b)	to maintain currency stability, when the increase in the world price of an export commodity creates the risk of a currency overvaluation; or

(c)	to protect revenue, food security and the environment.

3.   Such taxes should be enforced on a limited number of products for a limited period and shall be reviewed by the EPA Council for renewal after forty-eight (48) months.

4.   Any more favourable treatment consisting in or in relation to taxes applied by the EAC Partner State(s) to exports of any products destined for any major trading economy shall, from the date of entry into force of this Agreement, be accorded to the like product destined for the territory of the EU.

5.   For the purposes of this Article and Article 15, ‘major trading economy’ means any developed country, or any country accounting for a share of world merchandise exports above 1 percent in the year before the entry into force of the free trade agreement referred to in Article 15, or any group of countries acting individually, collectively or through a free trade agreement accounting collectively for a share of world merchandise exports above 1,5 percent in the year before the entry into force of the free trade agreement referred to in Article 15 (3).

1.   With respect to the goods covered by this Part, the EU shall accord to the EAC Partner State(s) any more favourable treatment applicable as a result of the EU becoming party to a free trade agreement with a third party after the signature of this Agreement.

2.   With respect to the goods covered by this Part, the EAC Partner State(s) shall accord to the EU any more favourable treatment applicable as a result of the EAC Partner State(s) becoming party to a free trade agreement with any major trading economy after the signature of this Agreement. Provided that the EU can demonstrate that it has been given less favourable treatment than that offered by the EAC Partner State(s) to any other major trading economy, the Parties shall to the extent possible, consult and jointly decide on how best to implement this paragraph on a case-by-case basis.

3.   The provisions of this Part shall not be so construed as to oblige the Parties to extend reciprocally any preferential treatment applicable as a result of one of them being party to a free trade agreement with a third party on the date of signature of this Agreement.

4.   Paragraph 2 shall not apply in respect of trade agreements between the EAC Partner State(s) with countries of the African, Caribbean and Pacific Groups, or other African countries and regions.

5.   For the purposes of this Article, ‘free trade agreement’ means an agreement substantially liberalising trade and substantially eliminating discriminatory measures and/or prohibiting new or more discriminatory measures among Parties at the entry into force of that agreement or within a reasonable time frame.

1.   The Parties agree that administrative cooperation is essential for the implementation and control of the preferential treatment granted under this Part and underline their commitment to combat irregularities and fraud in customs and related matters.

2.   Where a Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned in accordance with this Article.

3.   For the purposes of this Article, a failure to provide administrative cooperation shall mean, inter alia:

(a)	a repeated failure to respect the obligation to verify the originating status of the product(s) concerned;

(b)	a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin of the product(s) concerned;

(c)	a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question.

4.   A finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.

5.   The application of a temporary suspension shall be subject to the following conditions:

(a)

the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the Committee of Senior Officials established under Article 106 (hereinafter referred to as ‘the Committee of Senior Officials’) of its finding together with the objective information and enter into consultations within the Committee of Senior Officials, on the basis of all relevant information and objective findings, with a view to reaching a solution acceptable to both Parties;

(b)

where the Parties have entered into consultations within the Committee of Senior Officials as referred to in point (a) and have failed to agree on an acceptable solution within three (3) months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned, and such temporary suspension shall be notified to the EPA Council without undue delay;

(c)

temporary suspensions under this Article shall be limited to those necessary to protect the financial interests of the Party concerned, shall not exceed a period of six (6) months and may be renewed, and they shall be subject to periodic consultations within the Committee of Senior Officials in particular with a view to their termination as soon as the conditions for their application no longer exist.

6.   At the same time as the notification to the Committee of Senior Officials under paragraph 5(a), the Party making such notification should publish a notice to importers in its Official Journal. The notice to importers should indicate for the product concerned that there is a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud.

1.   Article VII of GATT 1994 and the Agreement on the implementation of Article VII of GATT 1994 shall govern customs valuation rules applied to trade between the Parties.

2.   The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.

1.   All prohibitions or restrictions on the importation, exportation or sale for export between the Parties, other than customs duties, taxes, fees and other charges provided for under Article 6, whether made effective through quotas, import or export licenses or other measures, shall be eliminated upon the date of entry into force of this Agreement. No new such measures shall be introduced in trade between the Parties. This Article shall be without prejudice to the provisions of Title VI of this Part.

2.   Paragraph 1 of this Article shall not extend to the following:

(a)	export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;

(b)	import and export prohibitions or restrictions necessary for the application of standards or regulations for the classification, grading or marketing of commodities in international trade.

1.   Imported products originating in one Party shall not be subject, either directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products of the other Party. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges so as to afford protection to their respective production.

2.   Imported products originating in one Party shall be accorded treatment no less favourable than that accorded to like domestic products of the other Party in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. This paragraph shall not prevent the application of differential internal transportation charges, which are based exclusively on the economic operation of the means of transport and not on the origin of the product.

3.   Neither Party shall establish or maintain any internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be supplied from domestic sources. Moreover, neither Party shall apply internal quantitative regulations so as to afford protection to their respective production.

4.   This Article shall not prevent the payment of subsidies exclusively to national producers, including payments to national producers derived from the proceeds of internal taxes or charges applied consistently with this Article and subsidies effected through governmental purchases of national products.

5.   This Article shall not apply to laws, regulations, procedures or practices governing public procurement.

1.   The Parties acknowledge the importance of customs cooperation and trade facilitation matters in the evolving global trading environment and agree:

(a)	to reinforce cooperation and ensure that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objective of promoting trade facilitation;

(b)	that the EAC Partner State(s) need transitional periods and capacity building to smoothly implement the provisions of this Title.

2.   The objectives of this Title are to:

(a)	facilitate trade between the Parties;

(b)	promote harmonisation of customs legislation and procedures at regional level;

(c)	provide support to the EAC Partner State(s) to strengthen trade facilitation;

(d)	provide support to the customs administrations of the EAC Partner State(s) to implement this Agreement and other international customs best practices; and

(e)	enhance cooperation between the Parties' customs authorities and other related border agencies.

1.   In order to ensure compliance with the provisions of this Title and effectively respond to the objectives laid down in Article 22, the Parties shall:

(a)	exchange information on customs legislation and procedures;

(b)	develop joint initiatives in mutually agreed areas;

(c)

cooperate in the following areas: (i) modernisation of customs systems and procedures, as well as reduction of customs clearance times; (ii) simplification and harmonisation of customs procedures and trade formalities, including those related to import, export and transit; (iii) enhancement of regional transit systems; (iv) enhancement of transparency in accordance with Article 24(3); (v) capacity building including financial and technical assistance to the EAC Partner State(s); (vi) any other area of customs as may be agreed by the Parties;

(d)	establish, as far as possible, common positions in international organisations in the field of customs and trade facilitation, such as the WTO, World Customs Organisation (WCO), United Nations (UN) and United Nations Conference on Trade and Development (UNCTAD);

(e)	promote coordination between all related agencies, both internally and across borders.

2.   Notwithstanding paragraph 1, the Parties shall provide each other with mutual administrative assistance in customs matters in accordance with the provisions of Protocol 1.

1.   The Parties agree that their respective trade and customs legislation and procedures shall draw upon international instruments and standards applicable in the field of customs and trade, including the substantive elements of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures done at Brussels on 26 June 1999, the substantive elements of the WCO Framework of Standards to Secure and Facilitate Global Trade, the WCO data set and the HS Convention.

2.   The Parties agree that their respective trade and customs legislation and procedures shall be based upon:

(a)	the need to protect and facilitate legitimate trade through effective enforcement of, and compliance with, the requirements set out in the customs legislation;

(b)	the need to avoid unnecessary and discriminatory burdens on economic operators, to protect against fraud and corruption, and to provide further facilitation for operators that meet high levels of compliance with customs legislation and procedures;

(c)	the need to use a single administrative document or electronic equivalent, for the purposes of establishing customs declarations in the EU and in the EAC Partner State(s), respectively;

(d)	modern customs techniques, including risk assessment, simplified procedures for entry and release of goods, post release controls, and audits;

(e)	the progressive development of systems, including those based upon information technology, for export import and transit operations, to facilitate the exchange of information between economic operators, customs administrations and other agencies;

(f)	the principle that penalties imposed for minor breaches of customs regulations or procedural requirements are proportionate and do not give rise to undue delays in their application in customs clearance;

(g)	a system of binding rulings on customs matters, in particular on tariff classification and rules of origin, in accordance with the rules laid down in regional and/or national legislation;

(h)	the need to apply fees and charges that are commensurate with the service provided in relation to any specific transaction, and not be calculated on an ad valorem basis. Fees and charges shall not be imposed on consular services in respect of trade in goods;

(i)	the elimination of any requirement for the mandatory use of pre-shipment inspections as defined by the WTO Agreement on Pre-shipment Inspection, or any equivalent requirement;

(j)	the elimination of all requirements for the mandatory use of customs brokers, as well as transparent, non-discriminatory and proportionate rules for their licensing.

3.   In order to improve working methods and to ensure the transparency and efficiency of customs operations, the Parties shall:

(a)	take further steps towards the simplification and standardisation of documentation and trade formalities to enable the rapid release and clearance of goods;

(b)	provide effective, prompt and non-discriminatory procedures enabling the right of appeal against customs and other agency administrative actions, rulings and decisions affecting imports, exports or goods in transit; such procedures shall be easily accessible to all enterprises;

(c)	ensure that integrity is maintained, through the application of measures reflecting the principles of the relevant international conventions and instruments.

1.   The Parties shall ensure freedom of transit through their territories via the most convenient routes. Any restriction, control or requirement shall be non-discriminatory, proportionate and applied uniformly.

2.   A Party may require that traffic in transit through its territory be entered at the proper customs house through designated routes. Should a Party require the use of such routes, it shall do it in full compliance with Article V(3) of GATT 1994.

3.   Without prejudice to legitimate customs controls, a Party shall accord no less favourable treatment to goods in transit from the territory of the other Party than that accorded to domestic goods.

4.   The Parties shall operate bonded transport regimes that allow the transit of goods without payment of customs duties or other charges having an equivalent effect, subject to the provision of an appropriate guarantee in accordance with regional and/or national customs legislation.

5.   The Parties shall promote and implement regional transit arrangements.

6.   The Parties shall promote coordination between all concerned agencies, both internally and across borders.

7.   The legislation of the Parties shall draw upon international standards and instruments relevant to transit.

1.   In view of the need to enhance the capacity of the EAC Partner State(s) in the area of customs and trade facilitation and without prejudice to their WTO commitments, the Parties agree that the EAC Partner State(s) shall benefit from a transition period of five (5) years from the date of entry into force of this Agreement to meet the obligations in Articles 23, 24 and 25.

2.   That transition period can be further extended by authorisation of the EPA Council.

1.   The Parties hereby establish a Special Committee on Customs and Trade Facilitation, composed of their representatives, which shall:

(a)	meet on a date and with an agenda agreed in advance by the Parties;

(b)	be chaired alternately by each Party; and

(c)	report to the EPA Council.

2.   The functions of the Special Committee on Customs and Trade Facilitation shall include:

(a)	monitoring the implementation and administration of this Title and of Article 9;

(b)	providing a forum to consult and discuss all issues concerning customs, including rules of origin, general customs procedures, customs valuation, tariff classification, transit and mutual administrative assistance in customs matters;

(c)	enhancing cooperation on the development, application and enforcement of rules of origin and related customs procedures, general customs procedures and mutual administrative assistance in customs matters;

(d)	enhancing cooperation on capacity building and technical assistance;

(e)	any other issues agreed by the Parties in respect of this Title.

1.   The provisions of this Title apply to measures covered by the World Trade Organisation Agreement on the Application of Sanitary and Phytosanitary Measures (the WTO SPS Agreement).

2.   For the purpose of this Title, unless otherwise provided, the definitions of the WTO SPS Agreement, the Codex Alimentarius Commission, the World Animal Health Organisation and the International Plant Protection Convention shall apply.

1.   The Parties reaffirm their rights and obligations under the international treaties and agreements relating to this Title to which they are party.

2.   Each Party shall:

(a)	have the sovereign right to implement SPS measures, provided that such measures are consistent with the provisions of the WTO SPS Agreement;

(b)	consult the other Party prior to the introduction of any new SPS measures, through the notification mechanisms provided for in the WTO SPS Agreement and, if and when appropriate, through the Parties' contact points;

(c)	support the other Party in gathering information needed to make informed decisions;

(d)	promote linkages, joint ventures, joint research and development between the EAC Partner State(s) and EU institutions and laboratories.

1.   The Parties shall aim to achieve harmonisation of their respective rules and procedures for the formulation of their SPS measures, including inspection, testing and certification procedures, in accordance with the WTO SPS Agreement.

2.   The Committee of Senior Officials shall develop modalities to assist and monitor this process of harmonisation.

1.   The Parties shall be transparent in their application of SPS measures in accordance with the WTO SPS Agreement.

2.   The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to SPS measures in accordance with the WTO SPS Agreement.

3.   The importing Party shall inform the exporting Party of any changes in its SPS import requirements that may affect trade falling under the scope of this Title. The Parties also undertake to establish mechanisms for the exchange of such information.

1.   The respective SPS authorities of the Parties shall be the competent authorities in the EAC Partner State(s) and the EU for the implementation of the measures referred to in this Title.

2.   The competent authorities referred to in paragraph 1 shall have the roles conferred upon them under the WTO SPS Agreement.

3.   The Parties shall notify each other of their respective competent authorities referred to in paragraph 1 and any changes thereto.

1.   The provisions of this Title shall apply to the preparation, adoption and application of technical regulations, standards and conformity assessment, as defined in the WTO Technical Barriers to Trade Agreement (TBT Agreement).

2.   For the purposes of this Title the definitions of the TBT Agreement apply.

1.   The Parties reaffirm their rights and obligations under the TBT Agreement, while taking account of their rights and commitments under other international arrangements to which both the EAC Partner State(s) and the EU are parties, including in particular those relating to the protection of the environment and biodiversity.

2.   In accordance with the provisions of the TBT Agreement, the Parties shall ensure that technical regulations are not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to trade between them.

1.   The Parties reaffirm their obligations concerning the notification and sharing of information about technical regulations, standards and conformity assessment procedures as provided for by the TBT Agreement.

2.   The Parties shall exchange information on issues of potential relevance to their trade relations, including rapid alerts, scientific opinions and events through enquiry points.

3.   The Parties may cooperate in the establishment and maintenance of enquiry points, and in the setting up and maintenance of common data bases.

1.   The Parties reaffirm their commitments with regard to conformity assessment in accordance with the TBT Agreement.

2.   The Parties may consider, taking account of the extent of alignment of their technical regulations, standards, and conformity assessment infrastructures, the negotiation of agreements on the mutual recognition of conformity assessment procedures.

1.   The regulatory bodies of the EAC Partner State(s) shall be the competent authorities in the EAC Partner State(s) for the implementation of the measures referred to in this Title that have the responsibility and competence for ensuring or supervising the implementation of standardisation, metrology, accreditation and conformity assessment.

2.   The body responsible in the EU for the implementation of this Title is the European Commission.

3.   The EAC Partner State(s) shall notify the EU of their technical regulatory bodies in accordance with this Agreement.

1.   Subject to this Article, nothing in this Agreement shall prevent the EU or the EAC Partner State(s), whether individually or collectively, from adopting anti-dumping or countervailing measures in accordance with the relevant WTO agreements. For the purpose of this Article, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.

2.   Before imposing definitive anti-dumping or countervailing duties in respect of products imported from either Party, the Parties shall consider the possibility of constructive remedies as provided for in the relevant WTO agreements.

3.   Where an anti-dumping or countervailing measure has been imposed by either Party, there shall be a single forum of judicial review, including at the stage of appeals.

4.   Where anti-dumping or countervailing measures can be imposed on a regional basis and on a national basis, where applicable, the Parties shall ensure that such measures are not applied simultaneously in respect of the same product by regional authorities on the one hand, and national authorities on the other.

5.   The importing Party shall notify the exporting Party of the receipt of a properly documented complaint before initiating any investigation.

6.   This Article shall be applicable in all investigations initiated after this Agreement enters into force.

7.   The WTO rules on dispute settlement shall apply to any disputes related to anti-dumping or countervailing measures.

1.   Subject to this Article, nothing in this Agreement shall prevent the EAC Partner State(s) and the EU from adopting measures in accordance with Article XIX of the GATT 1994, the WTO Agreement on Safeguards, and Article 5 of the WTO Agreement on Agriculture. For the purposes of this Article, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.

2.   Notwithstanding paragraph 1 of this Article, the EU shall, in light of the overall development objectives of this Agreement and the small size of the economies of the EAC Partner State(s), exclude imports from any EAC Partner State(s) from any measures taken pursuant to Article XIX of GATT 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.

3.   Paragraph 2 shall apply for a period of five (5) years, beginning with the date of entry into force of this Agreement. Not later than one hundred and twenty (120) days before the end of that period, the EPA Council shall review the operation of paragraph 2 in the light of the development needs of the EAC Partner State(s), with a view to determining whether to extend their application for a further period.

4.   Paragraph 1 shall be subject to the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU).

1.   After having examined alternative solutions, a Party may apply safeguard measures of limited duration which derogate from Articles 10 and 11 under the conditions and in accordance with the procedures laid down in this Article.

2.   Safeguard measures referred to in paragraph 1 may be taken where a product originating in one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:

(a)	serious injury to the domestic industry producing like or directly competitive products in the territory of the importing Party;

(b)	disturbances in a sector of the economy, particularly where those disturbances produce major social problems, or difficulties which could bring about a serious deterioration in the economic situation of the importing Party; or

(c)	disturbances in the markets of like or directly competitive agricultural products (4) or in the mechanisms regulating those markets.

3.   Safeguard measures referred to in this Article shall not exceed what is necessary to remedy or prevent the serious injury or disturbances, as defined in paragraphs 2 and 5(b). The safeguard measures of the importing Party may only consist of one or more of the following:

(a)	the suspension of the further reduction of the rate of import duty for the product concerned, as provided for under this Agreement;

(b)	an increase in the customs duty on the product concerned up to a level which does not exceed the customs duty applied to other WTO members; and

(c)	the introduction of tariff quotas on the product concerned.

4.   Without prejudice to paragraphs 1 to 3, where any product originating in the EAC Partner State(s) is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to under paragraph 2 to one or several of the EU outermost regions, the EU may take surveillance or safeguard measures limited to the region or regions concerned in accordance with the procedures laid down in paragraphs 6 to 9.

5.   (a) Without prejudice to paragraphs 1 to 3, where any product originating in the EU is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraph 2 to the EAC Partner State(s), the EAC Partner State(s) may take surveillance or safeguard measures limited to their territory in accordance with the procedures laid down in paragraphs 6 to 9.

(b)

The EAC Partner State(s) may take safeguard measures, in accordance with the procedures laid down in paragraphs 6 to 9, where a product originating in the EU as a result of the reduction of duties is being imported into their territory in such increased quantities and under such conditions as to cause or threaten to cause disturbances to an infant industry producing like or directly competitive products. Such provision is only applicable for a period of ten (10) years from the date of entry into force of this Agreement. This period may be extended by the EPA Council for a period of a maximum of five (5) years.

6.   (a) Safeguard measures referred to in this Article shall be maintained only for such a time as may be necessary to prevent or remedy serious injury or disturbances as defined in paragraphs 2, 4 and 5.

(b)

Safeguard measures referred to in this Article shall not be applied for a period exceeding two (2) years. Where the circumstances warranting the imposition of safeguard measures continue to exist, such measures may be extended for a further period of no more than two (2) years. Where the EAC Partner State(s) apply a safeguard measure, or where the EU applies a safeguard measure limited to the territory of one or more of its outermost regions, such measure may nevertheless be applied for a period not exceeding four (4) years and, where the circumstances warranting the imposition of safeguard measures continue to exist, may be extended for a further period of four (4) years.

(c)	Safeguard measures referred to in this Article that exceed one (1) year shall contain clear elements progressively leading to their elimination by the end of the set period, at the latest.

(d)	No safeguard measure referred to in this Article shall be applied to the import of a product that has previously been subject to such a measure for a period of at least one (1) year since the expiry of the measure.

7.   For the implementation of paragraphs 1 to 6, the following provisions shall apply:

(a)	where a Party takes the view that one of the circumstances set out in paragraphs 2, 4 or 5 exists, it shall immediately refer the matter to the Committee of Senior Officials for examination;

(b)

the Committee of Senior Officials may make any recommendation needed to remedy the circumstances which have arisen; if no recommendation has been made by the Committee of Senior Officials aimed at remedying the circumstances, or no other satisfactory solution has been reached within thirty (30) days of the matter being referred to the Committee of Senior Officials, the importing Party may adopt the appropriate measures to remedy the circumstances in accordance with this Article;

(c)

before taking any measure provided for in this Article or, in the cases to which paragraph 8 of this Article applies, as soon as possible, the EAC Partner State(s) shall supply the Committee of Senior Officials with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the Parties concerned;

(d)	in the selection of safeguard measures pursuant to this Article, priority must be given to those which least disturb the operation of this Agreement;

(e)

any safeguard measure taken pursuant to this Article shall be notified in writing immediately to the Committee of Senior Officials and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

8.   Where exceptional circumstances require immediate action, the importing Party concerned may take the measures provided for in paragraph 3, 4 or 5 on a provisional basis without complying with the requirements of paragraph 7. Such action may be taken for a maximum period of one hundred and eighty (180) days where measures are taken by the EU, and of two hundred (200) days where measures are taken by the EAC Partner State(s) or where measures taken by the EU are limited to the territory of one or more of its outermost regions. The duration of any such provisional measure shall be counted as a part of the initial period and any extension referred to in paragraph 6. In the taking of such provisional measures, the interest of all Parties involved shall be taken into account, including their level of development. The importing Party concerned shall inform the other Party and shall immediately refer the matter to the Committee of Senior Officials for examination.

9.   If an importing Party subjects imports of a product to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows liable to give rise to the problems referred to in this Article, it shall inform the Committee of Senior Officials without delay.

10.   The WTO Agreement shall not be invoked to preclude a Party from adopting safeguard measures in conformity with this Article.

1.   The cooperation in fisheries trade and development shall cover marine, inland fisheries and aquaculture.

2.   The Parties recognise that fisheries constitute a key economic resource of the EAC Partner State(s), contribute significantly to the economies of the EAC Partner State(s), and have great potential for future regional economic development and poverty reduction. They are also an important source of food and foreign exchange.

3.   The Parties further recognise that fisheries resources are also of considerable interest to both the EU and the EAC Partner State(s), and agree to cooperate for the sustainable development and management of the fisheries sector in their mutual interests, taking into account economic, environmental and social impacts.

4.   The Parties agree that the appropriate strategy to promote the economic growth of the fisheries sector and to enhance its contribution to the economy of the EAC Partner State(s), while taking into consideration its long-term sustainability, is through increasing value-adding activities within the sector.

1.   The principles of cooperation in fisheries shall include:

(a)	supporting the development and strengthening of regional integration;

(b)	preserving the acquis of the Cotonou Agreement and its successor agreement;

(c)	providing special and differential treatment;

(d)	taking into account the best available scientific information for resource assessment and management;

(e)	ensuring functioning monitoring systems for the environmental, economic and social impacts in the EAC Partner State(s);

(f)	ensuring conformity with existing national laws and relevant international instruments, including the United Nations Convention on the Law of the Sea of 1982, done at Montego Bay on 10 December 1982 (UNCLOS), regional and sub-regional agreements;

(g)	ensuring the preservation of, and the priority of particular needs of, the artisanal/subsistence fishery.

2.   Those guiding principles should contribute to sustainable and responsible development of the living inland and marine resources and aquaculture, and to optimising the benefits of this sector for present and future generations, through increased investment, capacity building and improved market access.

3.   The Parties shall cooperate to ensure that financial and other support will be provided to improve the competitiveness and production capacity of the processing factories, the diversification of the fishing industry and the development and improvement of port facilities in the EAC Partner State(s).

4.   Detailed areas of cooperation are identified under Title IV of Part V.

1.   The provisions of this Title shall apply to the utilisation, conservation and management of marine fisheries resources to optimise the benefits from fisheries for the EAC Partner State(s) through investment, capacity building and improved market access.

2.   The objectives of cooperation between the Parties under this Title are to:

(a)	promote the sustainable development and management of fisheries;

(b)

strengthen cooperation to ensure the sustainable exploitation and management of fisheries resources as a strong basis for regional integration, given the straddling and migratory species which are shared among coastal EAC Partner State(s), and given that no individual EAC Partner State has the capacity to ensure sustainability of the resource;

(c)	ensure a more equitable share of the benefits derived from the fisheries sector;

(d)	ensure effective the monitoring control and surveillance necessary for combating illegal, unreported and unregulated (IUU) fishing;

(e)	promote the effective exploitation, conservation and management of the living marine resource in the Exclusive Economic Zone (EEZ) and waters in which the EAC Partner State(s) have jurisdiction based on international instruments, including UNCLOS, for the social and economic benefit of the Parties;

(f)	promote and develop regional and international trade based on best practices;

(g)	create an enabling environment, including infrastructure and capacity building, for the EAC Partner State(s) to cope with the stringent market requirements for both industrial and small-scale fisheries;

(h)	support national and regional policies aimed at increasing the productivity and competitiveness of the fisheries sector; and

(i)	build links with other economic sectors.

1.   A precautionary approach shall be applied in determining levels of sustainable catch, fishing capacity and other management strategies to avoid or reverse undesirable outcomes such as over-capacity and over-fishing, as well as undesirable impacts on the ecosystems and artisanal fisheries.

2.   Each EAC Partner State may take appropriate measures, including seasonal and gear restrictions, in order to protect its territorial waters and ensure the sustainability of artisanal and coastal fisheries.

3.   The Parties shall promote the membership of all concerned EAC Partner State(s) to the Indian Ocean Tuna Commission (IOTC) and other relevant fisheries organisations. The EAC Partner State(s), with the EU, shall coordinate action to ensure the management and conservation of all fish species, including tuna and tuna-like resources and to facilitate relevant scientific research.

4.   Where there is insufficient scientific evidence for the competent national management authority to determine limits and target levels of sustainable catch in the EEZ of the EAC Partner State(s), the Parties, in consultation with the competent national authority, and together with IOTC and, where relevant, other regional fisheries organisations, shall support such scientific analysis.

5.   The Parties agree to take appropriate measures where an increase in effort results in catch levels above the target sustainable level established by the competent national authority.

6.   In order to conserve and manage straddling stocks and highly migratory fish stocks, the EU and the EAC Partner State(s) shall ensure compliance by vessels flying their flags with relevant national, regional and sub-regional fisheries management measures and related national laws and regulations.

1.   Vessel Management and post-harvest arrangements emerging from IOTC and any other relevant regional fisheries organisations will be observed. The EAC Partner State(s) and the EU shall set out minimum terms and conditions with respect to the monitoring, control and surveillance of EU fishing vessels operating in the waters of the EAC Partner State(s), which should include the following:

(a)	a vessel monitoring system (VMS) will be set up for the EAC Partner State(s) and if the EAC Partner State(s) do not have a VMS they will be assisted by the EU to set up a compatible VMS;

(b)

in addition to a compulsory compatible VMS system, the EAC Partner State(s), together with the EU, will develop other mechanisms to ensure effective monitoring, control and surveillance, and the EU will support the EAC Partner State(s) to put such an agreed system in place and assist in its implementation;

(c)

the EU and the EAC Partner State(s) shall have the right of placing observers, whether in national or international waters, with the procedures concerning the deployment of observers being well stipulated; observers are to be paid by the national governments, but all costs on board are to be met by the ship-owner; the EU shall support the costs of training observers;

(d)	common systems of reporting of fishing will be developed and used throughout the region, with minimum terms set for reporting;

(e)

all vessels that land or tranship their catch within an EAC Partner State shall do so in ports or outer-port areas. No transhipment shall be allowed at sea, except on particular conditions foreseen by the relevant Regional Fisheries Management Organisation (RFMO); the Parties shall cooperate to develop and modernise landing or transhipment infrastructure in ports of the EAC Partner State(s), including development capacity of fish products;

(f)	discards reporting shall be compulsory; priority should be given to avoiding discards through the use of selective fishing methods in line with principles of the IOTC and relevant regional fisheries organisations; as far as possible, by-catch shall be brought ashore.

2.   The Parties agree to cooperate in developing and implementing national/regional training programmes for EAC Partner State(s) nationals in order to facilitate their effective participation in the fishing industry. Where the EU has negotiated a bilateral fisheries agreement, the employment of EAC Partner State(s) nationals shall be encouraged. The International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work shall apply to seamen signed on EU vessels.

3.   The Parties shall undertake coordinated efforts to improve the means for preventing, deterring, and eliminating IUU fishing, and to this end take appropriate measures. Fishing vessels involved in IUU fishing should be confiscated and the owners prosecuted by the competent authorities. They should not be allowed to fish again in waters of the EAC Partner State(s) concerned unless prior authorisation has been obtained from both the flag State and that EAC Partner State(s) as well as, where relevant, the RFMO concerned.

1.   The provisions of this Title shall apply to inland fisheries, coastal and aquaculture development in the EAC Partner State(s) with respect to capacity building, technology transfer, SPS standards, investment and investment finance, environmental protection, and legal and regulatory frameworks.

2.   The objectives of cooperation in inland fisheries and aquaculture development will be to promote sustainable exploitation of inland fisheries resources and enhance aquaculture production, remove supply-side constraints, improve fish and fish products' quality to comply with international SPS measures, improve access to the market of the EU, address intra-regional trade barriers, attract capital inflows and investment into the sector, build capacity and enhance access to financial support for the private investors for inland fisheries and aquaculture development.

1.   Cooperation in the development of physical infrastructure shall include in particular transport, energy, information and communications technology.

2.   The objectives in this area are to:

(a)	increase the competitiveness of the EAC Partner State(s);

(b)	address supply-side constraints at institutional, national, and regional levels; and

(c)	enhance the development of public-private partnerships.

1.   Cooperation in transport shall include road, rail, air and water transport.

2.   The objectives in this area are to:

(a)	improve national and regional connectivity, to deepen regional economic integration;

(b)	develop, restructure, rehabilitate, upgrade and modernise the durable and efficient transport systems of the EAC Partner State(s);

(c)	improve the movement of people and flow of goods; and

(d)	provide better access to markets through improved road, air, maritime, inland water and rail transports.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	the management of transport systems;

(b)	the improvement, development and modernisation of infrastructure at all levels, including the development of inter-modal infrastructure networks;

(c)	strengthening the institutional, technical and administrative capacities of the EAC Partner State(s) in standards, quality assurance, metrology and conformity assessment services;

(d)	technology development and transfer, innovation, information exchange and networks, and marketing;

(e)	the encouragement of partnerships, linkages and joint ventures between economic operators;

(f)	the improvement of safety and reliability of the transport sector, including meteorological forecasting, management of hazardous goods, and emergency responses;

(g)	the development of regional transport policies and the regulatory frameworks.

1.   Cooperation in the energy sector shall include public and private sector participation in energy generation, transmission, distribution and cross-border energy trade.

2.   The objectives in this area are to:

(a)	develop, increase and expand the region's energy generation capacity;

(b)	increase the number of alternative sources of energy;

(c)	develop, increase and expand networks;

(d)	develop, increase and expand distribution and transmission;

(e)	improve the access of the EAC Partner State(s) to modern, efficient, reliable, diversified, sustainable and renewable sources of clean energy at competitive prices;

f)	enhance the production, distribution and management capacity of energy at national and regional levels;

(g)	promote power interconnectivity both within and outside the EAC Partner State(s) for maximum energy utilisation; and

(h)	support the creation of an environment conducive to attracting investment in this sector.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	production, transmission and distribution capacity of existing energy sources, in particular hydropower, petroleum and biomass;

(b)	diversification of the energy mix to include other potential sources of energy that are socially and environmentally acceptable and that reduce dependency on oil;

(c)	development of energy infrastructure, including for rural areas;

(d)	development of appropriate energy regulatory and policy reforms, including commercialisation and privatisation;

(e)	regional and inter-regional interconnectivity and cooperation in the production and distribution of energy;

(f)	capacity building in human resources, improvement in management, service standards, and institutional structures;

(g)	technology development and transfer, research and development, innovation, information exchange, development of databases and networks;

(h)	partnerships, linkages and joint ventures.

1.   Cooperation in the information and communications technologies (ICT) sector shall include the development of ICT, competitiveness, and innovation, as well as the smooth transition towards the information society.

2.   The objectives in this area are to:

(a)	develop the ICT sector; and

(b)	enhance the contribution of ICT in facilitating trade through e-services, e-commerce, e-government, e-health, secure transactions and other socio-economic sectors.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	ICT connectivity and cost-effectiveness at the national, regional and global levels;

(b)	dissemination of new ICT;

(c)	development of the legal and regulatory frameworks for ICT;

(d)	technology development, transfer and applications, research and development, innovation, information exchange and networks and marketing;

(e)	capacity building in human resources, improvement in service standards, and institutional structures;

(f)	partnerships, linkages and joint ventures between economic operators;

(g)	promotion and support for the development of niche markets for ICT-enabled services.

1.   Cooperation under this Title shall apply to crops and livestock, including productive insects.

2.   The Parties agree that the main objective of this Title is sustainable agricultural development, which includes but is not limited to food and livelihoods security, rural development and poverty reduction in the EAC Partner State(s).

3.   The other objectives of this Title are stipulated in Article 58.

1.   The Parties acknowledge the importance of the agricultural sector to the economies of the EAC Partner State(s) and agree to cooperate in promoting its transformation to increase its competitiveness, ensure food and nutrition security, rural development and facilitate the adjustment of agriculture and the rural economy to accommodate the effects of implementation of this Agreement, with special attention to small-scale farmers.

2.   The Parties agree to cooperate in the following areas:

(a)	regional integration: improvement of access to regional and international markets for agricultural products including the development of market systems and market development strategies;

(b)

enabling policies: (i) development of national and regional agricultural policies, legal and regulatory frameworks, building of the necessary capacity and support to institutional development; (ii) building capacities in the EAC Partner State(s) to take full advantage of increased trading opportunities and to maximise the benefits of trade reforms;

(c)

sustainable agricultural development: (i) undertaking joint activities on a regional basis, including fertiliser production, seed production, livestock development and plant and animal disease control; (ii) promotion and strengthening processing, marketing, distribution and transportation and the handling of agricultural products; (iii) capacity building to comply with international standards relating to agricultural production, packaging and SPS measures;

(d)

agricultural infrastructure: (i) development of agricultural support infrastructure, including sustainable irrigation systems, water harvesting, storage and management, marketing, and grading; (ii) development of research and training infrastructure, storage facilities, feeder and community access roads; (iii) development of agri-processing infrastructure; (iv) establishment of an agrometeorology centre in the EAC Partner State(s); (v) development of modern market infrastructure for the expansion of domestic and regional markets;

(e)

food and nutrition security: (i) capacity building of rural and urban communities for the promotion of improved livelihoods, eradication of poverty, and sustainable development; (ii) diversification of agricultural production and development of products that address the food and nutrition security needs of the EAC Partner State(s); (iii) design and implementation of programmes that lead to increased production and productivity in the agricultural sector, with special focus on small-scale farmers; (iv) capacity development for national and regional food safety compliance; and (v) design and implementation of social adjustment programmes in regions adversely affected by natural disasters;

(f)

value chain management: (i) promotion of the use of sustainable agricultural technologies and supply of necessary farm inputs; (ii) enhancing production, productivity and competitiveness of the agricultural sector through promoting agro-based industries; (iii) enhancing value addition throughout the supply chain of agricultural products to meet the requirements of national, regional and international markets; and (iv) promoting the development of activities in the areas of processing, marketing, distribution and transport of agricultural products;

(g)

early warning systems: (i) capacity building in terms of assessing and disseminating information on the likely impacts of impending disasters well in advance in order to take contingent measures and early responsiveness; (ii) development and management of national and regional information systems; (iii) development, strengthening and linking of early warning systems and contingency plans and strategies for disaster response management at national and regional levels; and (iv) supporting climate change adaptation and mitigation options in the EAC Partner State(s);

(h)

production and marketing of agricultural commodities: (i) developing capacities to access niche markets and facilitating compliance with commodity standards to meet such market requirements; (ii) diversification of agricultural production and export products in the EAC Partner State(s) (iii) development of modern market infrastructure for expansion of domestic and regional markets; and (iv) developing product packaging and labelling programmes which enable the producers of the EAC Partner State(s) to secure premium prices for commodity exports;

(i)

rural development: (i) capacity building of farmers' groups along the entire agricultural value chain; (ii) improving transport, communication and market facilities for marketing agricultural inputs and outputs; (iii) addressing socio-cultural barriers such as language differences, literacy levels, gender biases and community health, that influence the nature of farming systems; (iv) improving farmers' access to credit services and natural and cultural resource management; and (v) developing relevant policy measures to support the availability of adequate agricultural inputs to small-scale farmers on a timely basis;

(j)	net d-importing countries: addressing constraints in food production, storage and distribution in the EAC Partner State(s);

(k)

livelihood security: (i) capacity building for developing social services for populations in rural and peri-urban areas; (ii) improving total household income from agricultural production through diversification, adding value, off-farm employment and the adoption of new sustainable agricultural technologies, inter alia, in the EAC Partner State(s); (iii) increasing productivity of the agricultural sector within the EAC Partner State(s); and (iv) increasing the use of sustainable agricultural technologies;

(l)

technical support services: the EU commits to provide adequate resources and technical assistance for capacity building to the EAC Partner State(s) in a manner that is predictable and sustainable in the following areas: (i) strengthening of innovation and transfer of technology, knowledge, research and development; (ii) developing and increasing use of mechanisation of the agricultural sector of the EAC Partner State(s); (iii) establishing agricultural input plants and distribution systems within the EAC Partner State(s); (iv) promoting and strengthening investment in agricultural research, extension services, training and links between research-extensions and farmers; (v) as appropriate, establishing and strengthening regional centres of excellence, including an agro-meteorology centre, biotechnology, analytical and diagnostic laboratories for crops, livestock and soils; and (vi) improving access to services in plant and animal production, including livestock breeding services, veterinary services and plant protection services.

(m)

agricultural financing services: (i) strengthening rural financial services for small-scale producers, processors and traders; (ii) developing regionally owned mechanisms or a fund for agricultural and rural development; (iii) developing agricultural micro-financing institutions and insurance schemes; (iv) facilitating access to credit from banks and other financial institutions for agro processors, traders and farmers; and (v) supporting the financial institutions in the EAC Partner State(s) that serve the agriculture sector and facilitating access by the private sector to capital markets to raise both short- and long-term capital;

(n)

geographical indications: (i) developing policies and legal frameworks on geographical indications; (ii) establishing regulations on geographical indications; (iii) developing a code of practice to define products in relation to their origin; (iv) facilitating local organisations and institutions to coordinate local stakeholders on geographical indications and product conformity; (v) building capacity on identification, registration, marketing, traceability and conformity on geographical indications products; and (vi) developing any other area of cooperation under this heading that may arise in the future.

1.   Cooperation in private sector development shall include investment promotion and enterprise development.

2.   The objectives of this Title are to:

(a)	create an environment conducive to the promotion of investment and private enterprises, including the development of new industries, foreign direct investment and technology transfer;

(b)	enhance supply capacities, competitiveness and value addition;

(c)	improve access to investment finance from EU financing institutions such as the European Investment Bank;

(d)	build capacity and provide institutional support for private sector development institutions such as investment promotion agencies, apex bodies, chambers of commerce, associations, contact points and trade facilitation institutions;

(e)	develop and/or strengthen a policy, legal and regulatory framework that promotes and protects investment;

(f)	improve support and delivery mechanisms to the private sector from the joint ACP-EU institutions, including the Centre for the Development of Agriculture (CTA), inter alia, for promotion of investment in the EAC Partner State(s); and

(g)	create or strengthen partnerships, joint ventures, subcontracting, outsourcing and linkages.

1.   Cooperation in marine fisheries shall include:

(a)	fisheries management and conservation issues;

(b)	vessel management and post-harvest arrangements;

(c)	financial and trade measures; and

(d)	development of fisheries and fisheries products and marine aquaculture.

2.   The EU shall contribute to the mobilisation of the resources for the implementation of the identified areas of cooperation at national and regional levels, which will also include support for regional capacity building.

3.   Subject to the provisions of Part III and Article 75, the Parties agree to cooperate, in the following areas:

(a)	development and improvement of infrastructure for storage, marketing and distribution of fish and fish products;

(b)

capacity building at the national and regional levels to meet SPS/TBT/Hazard Analysis Critical Control Points technical requirements, development of monitoring control and surveillance systems of the EEZ of the EAC Partner State(s), and the introduction and management of certification schemes for specific marine fisheries;

(c)	investment and technology transfer in fishing operations, fish processing, port services, development and improvement of port facilities, diversification of the fishery to include non-tuna species which are under-exploited or not exploited;

(d)	joint ventures and linkages especially with MSMEs and artisanal fisheries within the fisheries supply chain;

(e)	value addition on fish; and

(f)	research and development on stock assessment and sustainability levels.

4.   The Parties undertake to cooperate in promoting the setting-up of joint ventures in fishing operations, fish processing, port services, enhancing production capacity, improving competitiveness of fishing and related industries and services, downstream processing, development and improvement of port facilities and diversification of the fishery to include non-tuna species which are under-exploited or not exploited.

1.   Cooperation under this Title shall include natural resources, in particular water, the environment and biodiversity.

2.   The objectives of cooperation under this Title are to:

(a)	enhance the linkages between trade and environment;

(b)	support the implementation of international environmental agreements, conventions and treaties;

(c)	ensure the balance between environmental management and poverty reduction;

(d)	protect the environment, and enhance biodiversity conservation and genetic preservation;

(e)	promote the equitable and sustainable utilisation of natural resources;

(f)	facilitate and encourage the sustainable utilisation of shared resources;

(g)	promote public and private sector involvement in natural resource management.

1.   Cooperation in the area of water resources shall include irrigation, hydropower generation, water production and supply, and the protection of water catchment areas.

2.   The objectives of cooperation in this area are to:

(a)	develop the sustainable use and management of water resources in the EAC Partner State(s), so as to improve the livelihood of the population of the EAC Partner State(s);

(b)	promote regional cooperation for the sustainable utilisation of transboundary water resources;

(c)	develop water supply infrastructure for productive purposes.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	the development of water supply infrastructure in the region;

(b)	the development of the relevant legal and regulatory frameworks;

(c)	integrated water resource management;

(d)	capacity building in human resources, improvement in service standards, water management, and institutional structures;

(e)	creation of partnerships, linkages and joint ventures between economic operators;

(f)	the promotion of technology development, transfer and applications, research and development, innovation, information exchange and networks;

(g)	the development of water pollution control, purification and conservation, wastewater treatment and sanitation;

(h)	the promotion of sustainable irrigation schemes.

1.   Cooperation in the area of environment shall include the protection and sustainable management of the environment, as well as the implementation of trade-related environmental policies.

2.   The objectives of cooperation in this area are to:

(a)	protect, restore and conserve the environment and biodiversity (flora, fauna and microbial genetic resources, including their ecosystems);

(b)	develop industries in the EAC Partner State(s) that use environmentally friendly technologies;

(c)	promote technology development, transfer and application, research and development, innovation and information exchange.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	the implementation of international environmental agreements, conventions and treaties;

(b)	strengthening and promoting equitable and sustainable utilisation, conservation and management of environment and biodiversity, including forestry and wildlife resources;

(c)	the reinforcement of institutional and legal frameworks and the capacity to develop, implement, administer and enforce environmental laws, regulations, standards and policies;

(d)	the creation of partnerships, linkages and joint ventures between economic operators;

(e)	the prevention and mitigation of natural environmental disasters and the loss of biodiversity;

(f)	the promotion of technology development and adaptation, transfer and applications, research and development and innovation;

(g)	the protection and management of coastal and marine resources, domestic and wild indigenous biological and genetic resources;

(h)	the development of alternative environmentally friendly activities and livelihoods;

(i)	the production and facilitation of trade in goods and services for which eco-labelling is important;

(j)	information exchange and networking on products and their requirements, in terms of production process, transport, marketing and labelling;

(k)	the development of infrastructure facilities on environmentally friendly products;

(l)	the integration of local communities into the management of biodiversity, forestry, and wildlife resources;

(m)	the development of waste management, and the safe disposal of industrial and toxic wastes;

(n)	the promotion of stakeholder participation in international environmental dialogue.

1.   Cooperation under this Title shall include supporting and building capacity in harmonisation, zoning and compartmentalisation, conformity assessment, information exchange and transparency of trade conditions.

2.   The objectives of cooperation under this Title are to:

(a)	facilitate the Parties' inter-regional and intra-regional trade, whilst safeguarding human, animal and plant life or health in accordance with the WTO SPS Agreement;

(b)	address problems arising from SPS measures on agreed priority sectors and products, giving due consideration to regional integration;

(c)	stipulate procedures and modalities for facilitating cooperation in SPS matters;

(d)	ensure transparency as regards SPS measures applicable to trade between and within the Parties;

(e)	promote intra-regional harmonisation of measures with international standards, in accordance with the WTO SPS Agreement, and the development of appropriate policies, legislative, regulatory and institutional frameworks in the EAC Partner State(s);

(f)	enhance the effective participation of the EAC Partner State(s) in the Codex Alimentarius Commission, the World Organisation for Animal Health and the International Plant Protection Convention;

(g)	promote consultation and exchanges between EAC and EU institutions and laboratories;

(h)	facilitate the development of capacity for setting and implementing regional and national standards in accordance with international requirements in order to facilitate regional integration;

(i)	establish and enhance the capacity of the EAC Partner State(s) to implement and monitor SPS measures pursuant to this Article; and

(j)	promote technology transfer.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	support the EAC Partner State(s) to comply with SPS measures, including the development of appropriate regulatory frameworks, policies, matters concerning the work of the relevant international standards-setting bodies, training, information events, capacity building, and technical assistance;

(b)

as appropriate, support the harmonisation of SPS measures within the EAC Partner State(s) and the setting-up of national SPS coordinating committees, and promote the capacity of the public and private sector for sanitary control; priority areas include development and implementation of a quality programme, training, information events, the building, upgrading, modernisation and accreditation of laboratories;

(c)	support on matters concerning the work of the relevant international standards-setting bodies; this cooperation may include training, information events, capacity building and technical assistance;

(d)	support in the area of fisheries with the aim of developing harmonised regional rules, legislation and standards of fish products to promote trade between the Parties and within the EAC region;

(e)	support with the aim of promoting cooperation between the SPS institutions of the EAC Partner State(s) and equivalent SPS institutions of the EU;

(f)	support the implementation of the SPS Agreement, particularly in strengthening the competent authorities, notification and points of enquiry of the EAC Partner State(s);

(g)	support information sharing and exchange.

1.   The Parties shall aim to achieve harmonisation of their respective rules and procedures for the formulation of their SPS measures, including inspection, testing and certification procedures, in accordance with the WTO SPS Agreement.

2.   As appropriate, the EAC Partner State(s) will develop, with the support of the EU, a program and timeframe for harmonising their SPS standards.

3.   The Committee of Senior Officials shall develop modalities to assist and to monitor the process of harmonisation within the regions, as appropriate.

1.   The EU agrees to provide technical assistance and special and differential treatment in accordance with Articles 9 and 10 of the WTO SPS Agreement.

2.   The Parties shall cooperate to address the special needs of the EAC Partner State(s) arising from the implementation of provisions of this Title.

3.   The Parties agree that the following areas are priorities for technical assistance:

(a)	the building of technical capacity in the public and private sectors of the EAC Partner State(s) to enable sanitary and phytosanitary controls, including training and information events for inspection, certification, supervision and control;

(b)	the enhancement of technical capacity for the implementation and monitoring of SPS measures, including promoting greater use of international standards;

(c)

the development of capacities for risk analysis, harmonisation, compliance, testing, certification, residue monitoring, traceability and accreditation including through the upgrading or setting-up of laboratories and other equipment to help the EAC Partner State(s) comply with international standards;

(d)	the support for the participation of the EAC Partner State(s) in the work of relevant international standards-setting bodies;

(e)	the development of the capacity of the EAC Partner State(s) for effective participation in the notification processes.

1.   Cooperation under this Title shall include the preparation, adoption and application of technical regulations, standards and conformity assessment procedures, as defined in the TBT Agreement.

2.   The objectives of cooperation under this Title are to:

(a)	progressively eliminate technical barriers to trade, in order to facilitate trade between the Parties and within the EAC Partner State(s);

(b)	enhance regional integration among EAC Partner State(s) by harmonising standards, technical regulations and conformity assessment procedures applied in the EAC Partner State(s), in accordance with the TBT Agreement;

(c)	promote greater use of international technical regulations, standards and conformity assessment procedures, including sector-specific measures;

(d)	develop functional links, joint ventures and joint research and development work between the EAC Partner State(s) and EU standardisation, conformity assessment and regulatory institutions;

(e)	enhance market access for products originating in the EAC Partner State(s), through improvements in their safety, quality and competitiveness;

(f)	promote the greater use of international best practices for technical regulations, international standards and conformity assessment procedures;

(g)	ensure that the preparation, adoption and application of standards and technical regulations are transparent and do not create unnecessary obstacles to trade between the Parties, in accordance with the provisions of the TBT Agreement;

(h)	support the development of appropriate regulatory frameworks, policies and reforms within the EAC Partner State(s), to meet internationally accepted practices;

(i)	assist the EAC Partner State(s) to implement the TBT Agreement and to comply with the TBT requirements of their trading partners in the context of the TBT Agreement.

3.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	support for the promotion of greater use of international standards, technical regulations and conformity assessments, including sector-specific measures in the Parties' territories;

(b)	support for the capacity building of EAC Partner State(s) in the fields of standardisation, metrology, accreditation and conformity assessment procedures, including support for the upgrading and setting up of laboratories and relevant institutions, as well as the procurement of relevant equipment;

(c)	support for quality management and assurance in selected sectors of importance to the EAC Partner State(s);

(d)	support for the full participation of the standards and other technical regulatory bodies of the EAC Partner State(s) in international standard-setting bodies, and reinforcing the role of international standards as a basis for technical regulations;

(e)	support for efforts by the conformity assessment bodies of the EAC Partner State(s) to obtain international accreditation;

(f)	the development of functional links between the Parties' standardisation, conformity assessment and certification institutions;

(g)

support for the development of common understanding on good regulatory practices, including: (i) transparency in the preparation, adoption and application of technical regulations, standards and conformity assessment procedures; (ii) the necessity and proportionality of regulatory measures and related conformity assessment procedures, which may include the use of suppliers' declarations of conformity; (iii) the use of international standards as a basis for setting up technical regulations, except where such international standards would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued; (iv) the enforcement of technical regulations and market surveillance activities; and (v) the establishment of mechanisms and methods for reviewing technical regulations, standards and conformity assessment procedures;

(h)	the identification, prioritisation and support in the development of, the necessary technical infrastructure and transfer of technology in terms of metrology, standardisation, testing, certification and accreditation, to support technical regulations;

(i)	the enhancement of regulatory, technical and scientific cooperation by, inter alia, exchange of information, experiences and data, with a view to improving the quality and level of the relevant technical regulations and making efficient use of regulatory resources;

(j)	the development of compatibility and convergence of the respective technical regulations, standards and conformity assessment procedures;

(k)	the promotion and encouragement of bilateral cooperation between the Parties' respective organisations responsible for metrology, standardisation, testing, certification and accreditation;

(l)	the promotion of cooperation between the Parties and in the EAC in relation to the work of relevant international institutions and organisations, and fora dealing with TBT issues.

1.   The Parties acknowledge and recognise the importance of cooperation in customs and trade facilitation matters in the evolving global trading environment.

2.   The Parties agree to reinforce cooperation with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objective of promoting trade facilitation.

3.   The Parties acknowledge the need for proper administrative capacity to meet those objectives. They agree that the EAC Partner State(s) will need transitional periods and capacity building to smoothly implement the provisions of this Title.

4.   The objectives of cooperation under this Title are to:

(a)	facilitate trade between the Parties;

(b)	promote the harmonisation of customs legislation and procedures at regional level;

(c)	provide support to the EAC Partner State(s) to strengthen trade facilitation;

(d)	provide support to the customs administrations of the EAC Partner State(s) to implement this Agreement and other international customs best practices;

(e)	enhance cooperation between the Parties' customs authorities and other related border agencies.

5.   Subject to Article 75, the Parties agree to cooperate in the following areas:

(a)	exchange of information on customs legislation and procedures;

(b)	development of joint initiatives in mutually agreed areas;

(c)

support for the: (i) modernisation of customs systems and procedures and reduction of customs clearance time; (ii) simplification and harmonisation of customs procedures and trade formalities, including those related to import, export, and transit; (iii) enhancement of regional transit systems; (iv) enhancement of transparency in accordance with Article 134; (v) capacity building, including financial and technical assistance to the EAC Partner State(s) in this area; and (vi) any other area of customs as agreed on by the Parties to this Agreement;

(d)	establishment, as far as possible, of common positions in international organisations in the field of customs and trade facilitation, such as the WTO, WCO, UN and UNCTAD;

(e)	promotion of coordination between all related agencies, both internally and across borders.

6.   The Parties shall cooperate in customs matters and on rules of origin through:

(a)	the introduction of procedures and practices which reflect international instruments and standards applicable in the field of customs and trade facilitation, including WTO rules and WCO instruments and standards;

(b)	the implementation of activities aimed at consolidating the harmonisation of customs standards and trade facilitation measures;

(c)	the application of modern customs techniques, including risk assessment, binding rulings, simplified procedures, post release controls and audit methods;

(d)	the automation of customs and other trade procedures, including electronic exchange of customs and trade information;

(e)	the training of customs officials and other relevant public and private sector officials on customs and trade facilitation; and

(f)	in any other areas that may be identified by the Parties.

1.   The Parties recognise that the elimination and/or substantial reduction of tariffs as set out in this Agreement will be a challenge for the EAC Partner State(s). The Parties agree that this specific challenge shall be addressed through the creation of a compensatory framework, subject to the provisions of Annex VI which prevail.

2.   The Parties also recognise that the implementation of this Agreement may result in potential challenges, inter alia in the social, economic and environmental domain, to the economies of the EAC Partner State(s). The Parties agree that those challenges shall be addressed through economic and development cooperation actions.

3.   Cooperation under this Title aims at addressing actual and potential adjustment challenges resulting from the implementation of this Agreement.

1.   With regard to revenue losses linked to the reduction of tariffs, the EU shall, subject to the provisions of Annex VI which prevail:

(a)	engage in an enhanced dialogue on fiscal adaptation measures and reforms;

(b)	establish cooperation modalities to support fiscal reform;

(c)	provide financial resources to cover transitionally the agreed losses of government revenue arising from the elimination of, and/or a substantial reduction in, customs tariffs.

2.   To ensure that the economies of the EAC Partner State(s) take full advantage of this Agreement, the EU agrees to work with the EAC Partner State(s) to undertake appropriate cooperation activities aiming at:

(a)	improving the competitiveness of productive sectors within the EAC Partner State(s);

(b)	improving productive and professional capacities of the workforce of the EAC Partner State(s), including training of workers displaced by the closure of firms and/or equipping them with new skills for new activities etc.;

(c)	supporting measures towards sustainable environment;

(d)	building capacity to enhance macro-economic discipline;

(e)	mitigating the possible impacts affecting food and nutrition security, rural development, livelihood security and export earnings in the EAC Partner State(s);

(f)	addressing other possible cooperation areas related to the implementation challenges of this Agreement.

1.   Recognising the EU's commitment to support the implementation of this Agreement and the efforts of the EAC Partner State(s) themselves to finance their development needs, the Parties agree to work both jointly and independently to mobilise financial resources to support the implementation of this Agreement, regional integration and the development strategies of the EAC Partner State(s).

2.   The objective of joint resource mobilisation is to complement, support and promote in a spirit of interdependence, the efforts of the EAC Partner State(s) in pursuing alternative sources of funding to support regional integration and the development strategies, in particular the EPA Development Matrix in Annex III(a), subject to the provisions of Annex VI which prevail.

1.   Subject to the provisions of Annex VI which prevail, the EAC Partner State(s) shall:

(a)	commit resources from their financing mechanisms on a timely and predictable basis to support regional integration and the EPA-related development strategies and projects as contained in the EPA Development Matrix;

(b)	develop their development strategies with due regard for the right of the EAC Partner State(s) to determine the direction and the sequence of their development strategies and priorities;

(c)	establish an EPA Fund to channel EPA-related resources;

(d)	incorporate the priorities of the EPA Development Matrix in regional and national strategies.

2.   Subject to the provisions Annex VI which prevail, the EAC Partner State(s) shall formulate rules and regulations for the management of the EPA Fund, to ensure transparency, accountability and value for money in the utilisation of those resources. Without prejudice to other partners' contributions to the EPA Fund, the channelling of the EU resources will be made provisionally on a successful assessment of the EPA Fund's operating procedures by the EU.

3.   Subject to the provisions of Annex VI which prevail, The EU shall commit resources on a timely and predictable basis taking particularly into account the supply-side constraints of the EAC Partner State(s) linked to the implementation of this Agreement, including financing gaps identified in the EPA Development Matrix, through:

(a)	the EU budget;

(b)	any other instrument that will be used to implement the EU's official development assistance.

4.   The Parties shall jointly commit to work towards mobilising the following resources:

(a)	funds of other (multilateral or bilateral) donors;

(b)	grants, concessional loans, public-private partnerships, and specialised facilities;

(c)	any other official development assistance resources available from development partners.

1.   The Parties shall enter into consultations and endeavour to resolve in good faith any dispute concerning the interpretation and application of this Agreement with the aim of reaching a mutually agreed solution.

2.   A Party shall seek consultations by means of a written request to the other Party, copied to the Committee of Senior Officials, identifying the measure at issue and the provisions of the Agreement that it considers the measure not to be in conformity with.

3.   Consultations shall take place, unless the Parties agree otherwise, in the territory of the Party complained against and shall be held within twenty (20) days of the date of the receipt of the request. The consultations shall be deemed concluded within sixty (60) days of the date of the receipt of the request of the Party complained against, unless the Parties agree to continue consultations. All information disclosed during the consultations shall remain confidential.

4.   Consultations on matters of urgency, including those regarding perishable or seasonal goods shall be held as soon as is practically possible and in any event within fifteen (15) days of the date of the receipt of the request, and shall be deemed concluded within thirty (30) days of the date of the receipt of the request, unless the Parties agree to continue consultations.

5.   If the Party to which the request for consultations is made does not respond to that request within ten (10) days of the date of its receipt thereof, or if consultations are not held within the respective time frames laid down in paragraphs 3 and 4 of this Article, or if consultations have been concluded and no agreement has been reached on a mutually agreed solution, either Party may request settlement of the dispute by arbitration in accordance with Article 112.

6.   The Parties may agree to amend the time limits referred to in paragraphs 3 to 5, in light of the difficulties or complexities of the case experienced by either Party.

1.   If consultations fail to produce a mutually agreed solution, the Parties may, by agreement, seek recourse to a mediator. Unless the Parties agree otherwise, the terms of reference for the mediation shall be the matter referred to in the request for consultations.

2.   Either Party may proceed to arbitration under Article 112 without recourse to mediation.

3.   Unless the Parties agree on a mediator within fifteen (15) days of the date of the agreement to request mediation, the Chairperson of the Committee of Senior Officials, or his or her delegate, shall select by lot a mediator from the pool of individuals who are on the list referred to in Article 125 and are not nationals of either Party. The selection shall be made within twenty five (25) days of the date of the submission of agreement to request mediation and in the presence of a representative of each Party. The mediator shall convene a meeting with the Parties no later than thirty (30) days after being selected. The mediator shall receive the submissions of each Party no later than fifteen (15) days before the meeting and notify an opinion no later than forty five (45) days after having been selected.

4.   The mediator's opinion may include a recommendation on how to resolve the dispute consistent with the provisions of this Agreement. The mediator's opinion is non-binding.

5.   The Parties may agree to amend the time limits referred to in paragraph 3. The mediator may also decide to amend those time limits upon request of any of the Parties or on his or her own initiative, in light of the difficulties experienced by the Party concerned or the complexities of the case.

6.   The proceedings involving mediation, in particular all information disclosed and positions taken by the Parties during those proceedings shall remain confidential.

1.   Where the Parties have failed to resolve the dispute by recourse to consultations as provided for in Article 110, the complaining Party may give notice to initiate the procedure for the establishment of an arbitration panel, which shall be established in accordance with Article 113.

2.   The notice for establishment of an arbitration panel shall be made in writing to the Party complained against and to the Committee of Senior Officials. The complaining Party shall identify in its notice the specific measures at issue, and it shall clearly explain how such measures constitute a breach of the provisions of this Agreement.

1.   An arbitration panel shall be composed of three arbitrators.

2.   Within ten (10) days of the date of the submission of the notice for the establishment of an arbitration panel to the Committee of Senior Officials, the Parties shall consult each other in order to reach an agreement on the composition of the 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 of this Article, each Party will select an arbitrator, from the list of arbitrators established under Article 125, within five (5) days. If one of the Parties fails to appoint its arbitrator, upon request of the other Party, that Party's arbitrator shall be selected by lot by the Chairperson of the Committee of Senior Officials, or the Chairperson's delegate from the sub-list of that Party established under Article 125.

4.   Unless the Parties reach an agreement concerning the Chairperson of the arbitration panel within the time frame established in paragraph 2 of this Article, the two arbitrators shall in turn appoint a third arbitrator as the Chairperson of the panel, from the list established under Article 125, within five (5) days of their appointment and shall notify the Committee of Senior Officials of the appointment. In the event of a failure to appoint the Chairperson of the panel, either Party may ask the Chairperson of the Committee of Senior Officials or the Chairperson's delegate to select by lot the Chairperson of the arbitration panel from the sub-list of Chairpersons, contained in the list established under Article 125, within five (5) days.

5.   The date of establishment of the arbitration panel shall be the date on which the three arbitrators are selected and have accepted their appointment in accordance with the rules of procedure adopted under Article 120.

1.   The arbitration panel shall notify the Parties of an interim report containing both the descriptive section and its findings and conclusions, as a general rule not later than ninety (90) days from its date of establishment. Where it considers that this deadline cannot be met, the Chairperson of the arbitration panel must notify the Parties and the Committee of Senior Officials in writing, stating the reasons for the delay and the date on which the panel plans to issue its interim report. Under no circumstances should the interim report be issued later than one hundred and twenty (120) days after the date of the establishment of the arbitration panel. Any Party may submit written comments to the arbitration panel on precise aspects of its interim report within fifteen (15) days of the notification of the report.

2.   In cases of urgency, including those involving perishable or seasonal goods, the arbitration panel shall make every effort to issue its interim report within thirty (30) days, and in any case no later than forty five (45) days, after its establishment. A Party may submit a written request for the arbitration panel to review precise aspects of the interim report, within seven (7) days of the notification of the interim report.

3.   After considering any written comments by the Parties on the interim report, the arbitration panel may modify its report and make any further examination it considers appropriate. The final arbitration panel ruling shall include a discussion of the arguments made at the interim review stage and shall respond clearly to the questions and observations of the Parties.

1.   The arbitration panel shall notify its ruling to the Parties and to the Committee of Senior Officials within one hundred and twenty (120) days from the date of its establishment.

Notwithstanding the first subparagraph, where that deadline cannot be met, the Chairperson of the arbitration panel shall notify the Parties and the Committee of Senior Officials in writing, stating the reasons for the delay and the date on which the panel plans to issue its ruling. Under no circumstance shall the ruling be notified later than one hundred and fifty (150) days from the date of its establishment.

2.   In cases of urgency, including those involving perishable and seasonal goods, the arbitration panel:

(a)	shall notify its ruling within sixty (60) days from the date of its establishment;

(b)	may give a preliminary ruling, as soon as that is practically possible, and in any event within seven (7) days of its establishment, on whether it deems the case to be urgent.

3.   The arbitration panel ruling shall include recommendations as to how the Party complained against could bring itself into compliance.

4.   Notwithstanding paragraphs 6 to 10 on the reasonable period of time, the Party complained against shall take any measure necessary to comply immediately and in good faith with the arbitration panel ruling.

5.   If immediate compliance is not possible, the Parties shall endeavour to agree on the period of time to comply with the ruling. In such a case, the Party complained against shall, no later than twenty one (21) days after the notification of the arbitration panel ruling to the Parties, notify the complaining Party and the Committee of Senior Officials of the time it will require for compliance.

6.   If there is disagreement between the Parties on the reasonable period of time to comply with the arbitration panel ruling, the complaining Party shall, within fourteen (14) days of the notification made under paragraph 1, request in writing the arbitration panel to determine the length thereof. Such request shall be notified simultaneously to the Party complained against and to the Committee of Senior Officials. The arbitration panel shall notify its ruling to the Parties and to the Committee of Senior Officials within twenty one (21) days from the date of the submission of the request.

7.   In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures set out in Article 113 shall apply. The time limit for notifying the ruling shall be thirty five (35) days from the date of the submission of the request referred to in paragraph 6 of this Article.

8.   In determining the length of the reasonable period of time, the arbitration panel shall take into consideration the length of time that it will normally take the Party complained against to adopt comparable legislative or administrative measures to those identified by such Party as being necessary to ensure compliance, and in particular, the panel shall take into account the difficulties the EAC Partner State(s) may encounter due to lack of requisite capacity.

9.   The reasonable period of time may be extended by agreement between the Parties.

1.   The Party complained against shall notify the complaining Party and the Committee of Senior Officials before the end of the reasonable period of time of any measure that it has taken to comply with the arbitration panel ruling.

2.   Where, at the end of the reasonable period of time, the Party complained against has not complied with paragraph 1 of this Article, the complaining Party may take, upon notification to the Party complained against and to the Committee of Senior Officials, appropriate measures in accordance with Article 118(2).

3.   Where there is a disagreement between the Parties as to whether the Party complained against has brought itself into compliance with the provisions of this Agreement, either Party may request in writing the arbitration panel to rule on the matter. Such a request shall identify the specific measure at issue and it shall explain clearly how such measure is incompatible or compatible with the provisions of the Agreement and the arbitration panel ruling.

4.   The arbitration panel shall endeavour to notify its ruling within forty-five (45) days of the date of the submission of the request referred to in paragraph 3. In cases of urgency, including those involving perishable and seasonal goods, the arbitration panel shall notify its ruling within thirty (30) days of the date of the submission of the request.

5.   In the event that the original arbitration panel is, or some of its members are, unable to reconvene within fifteen (15) days, the procedures set out in Article 113 shall apply. In such cases, the time limit for notifying the ruling shall be eighty (80) days from the date of the submission of the request referred to in paragraph 3 of this Article.

1.   If the Party complained against fails to notify any measure taken to comply with the arbitration panel ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that the measure notified under Article 116(1) is not compatible with the obligations of the Party complained against under the provisions of this Agreement, the complaining Party shall be entitled, upon notification to the Party complained against, to adopt appropriate measures.

2.   In adopting such measures, the complaining Party shall endeavour to select measures that least affect the attainment of the objectives of this Agreement, and shall take into consideration their impact on the economy of the Party complained against. In addition, where the EU has obtained the right to adopt such measures, it shall select measures which are specifically aimed at bringing into compliance the EAC Partner State whose measures were found to be in breach of this Agreement.

3.   At any time after the expiry of the reasonable period of time, the complaining Party may request the Party complained against to provide an offer for temporary compensation, and the Party complained against shall present such an offer.

4.   Compensation or retaliatory measures shall be temporary and shall be applied only until any measure found to breach the provisions of this Agreement has been withdrawn or amended so as to bring it into conformity with those provisions, or until the Parties have agreed to settle the dispute.

1.   The Party complained against shall notify the other Party and the Committee of Senior Officials of any measure it has taken to comply with the ruling of the arbitration panel and of its request for an end to the application of appropriate measures by the complaining Party.

2.   Where the Parties do not reach an agreement on the compatibility of the notified measure with the provisions of this Agreement within thirty (30) days of the date of the submission of the notification, the complaining Party shall request in writing the arbitration panel to rule on the matter. Such a request shall be notified to the Party complained against and to the Committee of Senior Officials. The arbitration panel ruling shall be notified to the Parties and to the Committee of Senior Officials within forty-five (45) days of the date of the submission of the request.

3.   If the arbitration panel rules that any measure taken to comply is not in conformity with the provisions of this Agreement, it shall determine whether the complaining Party may continue to apply appropriate measures. If the arbitration panel rules that any measure taken to comply is in conformity with the provisions of this Agreement, the appropriate measures shall be terminated immediately following the date of the ruling.

4.   In the event that the original arbitration panel is, or some of its members are, unable to reconvene, the procedures laid down in Article 113 shall apply. The period for notifying the ruling shall be sixty (60) days from the date of the submission of the request referred to in paragraph 2 of this Article.

1.   The written and oral submissions of the Parties shall be made in any official language of those Parties.

2.   The Parties shall endeavour to agree on a common working language for any specific proceedings under this Part. If those Parties are unable to agree on a common working language, each Party shall arrange for and bear the costs of the translation of its written submissions and interpretations at the hearings into the language chosen by the Party complained against, unless such language is an official language of that Party (5).

1.   Arbitration panels shall interpret the provisions of this Agreement in accordance with the customary rules of interpretation of public international law, including those set out in the Vienna Convention on the Law of Treaties signed at Vienna on 23 May 1969.

2.   The interpretations and rulings of the arbitration panel cannot add to or diminish the rights and obligations provided in this Agreement.

1.   The arbitration panel shall make every effort to take any decision by consensus. Where a decision cannot be adopted by consensus, the matter at issue shall be decided by majority vote.

2.   Any ruling of the arbitration panel shall set out the findings of fact, the applicability of the relevant provisions of this Agreement and the reasoning behind any findings, recommendations or conclusions that it makes. The Committee of Senior Officials shall make the arbitration panel rulings publicly available.

3.   Arbitration panel rulings shall be final and binding on the Parties.

1.   The Committee of Senior Officials shall, not later than six (6) months from the date of entry into force of this Agreement, establish a list of at least fifteen (15) individuals who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one sub-list for each Party to serve as arbitrators; and one sub-list of individuals that are not nationals of either Party and who shall be available to act as Chairperson of the arbitration panel. Each sub-list shall include at least five (5) individuals. The Committee of Senior Officials shall ensure that the list is always maintained at this level, in accordance with the rules of procedure adopted under Article 120.

2.   Should any of the sub-lists not be established or not contain sufficient names of individuals at the time a notice is made pursuant to Article 113(2), the arbitrators shall be drawn by lot from the individuals who have been formally proposed for the respective sub-list by one or both of the Parties. If only one Party has proposed names, the three arbitrators shall be drawn by lot from among those names.

3.   In case there is no list of arbitrators established under paragraph 1, or names of arbitrators proposed under paragraph 2, the Party initiating the process of arbitration shall request the Secretary-General of the Permanent Court of Arbitration to act as the appointing authority.

4.   Arbitrators must have specialised knowledge of, and experience in, law and international trade. They shall be independent, serve in their individual capacities and not take instructions 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 the rules of procedure adopted under Article 120.

1.   Arbitration panels established under this Agreement shall not adjudicate disputes on either Party's rights or obligations under the WTO agreements.

2.   Recourse to the dispute settlement provisions of this Agreement shall be without prejudice to any action within the WTO framework, including dispute settlement action. However, where a Party has, with regard to a particular measure, initiated a dispute settlement proceeding, either under this Title or under the WTO Agreement, it shall not institute a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has ended. In addition, a Party shall not seek redress for the breach of an obligation which is identical under this Agreement and under the WTO Agreement in both fora. In such case, once a dispute settlement proceeding has been initiated, a Party shall not bring a claim seeking redress for the breach of the identical obligation under the other agreement to the other forum, unless the forum selected fails for procedural or jurisdictional reasons to make findings on the claim seeking redress of that obligation.

3.   A Party may, with regard to a particular measure, institute a dispute settlement proceeding either under this Part or under the WTO Agreement, as follows:

(a)

dispute settlement proceedings under this Part shall be deemed to be initiated by a Party's request for the establishment of an arbitration panel under Article 112, and shall be deemed to be ended when the arbitration panel notifies its ruling to the Parties and to the Committee of Senior Officials under Article 115, or where a mutually agreed solution has been reached under Article 119;

(b)

dispute settlement proceedings under the WTO Agreement shall be deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the DSU, and shall be deemed to be ended when the WTO Dispute Settlement Body adopts the report of the WTO panel or the Appellate Body, as the case may be, under Articles 16 and 17(14) of the DSU.

4.   Nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the WTO Dispute Settlement Body. The WTO Agreement shall not preclude a Party from suspending obligations under this Agreement.

1.   Any time limits laid down in this Part, including the limits for the arbitration panels to notify their rulings, shall be counted in calendar days from the day following the act or fact to which they refer.

2.   Any time limit referred to in this Part may be extended by mutual agreement of the Parties.