On the signing of the Agreement between the Republic of Kazakhstan and the United Arab Emirates on Trade in Services and Investments

Decree of the President of the Republic of Kazakhstan dated June 6, 2026 No. 1307.

In accordance with subparagraph 1) of Article 8 of the Law of the Republic of Kazakhstan "On International Treaties of the Republic of Kazakhstan", I HEREBY DECREE:

     1. To approve the attached draft Agreement between the Republic of Kazakhstan and the United Arab Emirates on Trade in Services and Investments.

     2. To authorize Serik Makashevich Zhumangarin, Deputy Prime Minister and Minister of National Economy of the Republic of Kazakhstan, to sign on behalf of the Republic of Kazakhstan an Agreement between the Republic of Kazakhstan and the United Arab Emirates on Trade in Services and Investments, authorizing amendments and additions that are not fundamental.

     3. This Decree shall enter into force from the date of its signing.

President of the Republic of Kazakhstan

K. Tokaev

Approved by Decree of the President of the Republic of Kazakhstan on June 6, 2026 No. 1307

Project

AGREEMENT BETWEEN THE REPUBLIC OF KAZAKHSTAN AND THE UNITED ARAB EMIRATES ON TRADE IN SERVICES AND INVESTMENTS

THE PREAMBLE

     The Republic of Kazakhstan (hereinafter referred to as "Kazakhstan") and the United Arab Emirates (hereinafter referred to as the "UAE");

     hereinafter referred to individually as the "Party" and collectively as the "Parties";

     RECOGNIZING the strong economic and political ties between Kazakhstan and the UAE and wishing to strengthen these ties by creating a free trade area covering services and investments, thus establishing a close and lasting relationship;

     RECOGNIZING the mutual desire of the Parties for a comprehensive economic agreement covering trade in services, investment and trade-related areas;

     CONFIRMING the Agreement on Economic Partnership between the Eurasian Economic Union and its member States on the one hand and the United Arab Emirates on the other hand dated June 27, 2025;

     HAVING DECIDED to rely on their respective rights and obligations under the GATS and other relevant acts of the Marrakesh Agreement Establishing the World Trade Organization of April 15, 1994;

     AWARE of the dynamic and rapidly changing global environment caused by globalization and technological progress, which poses various economic and strategic challenges and opportunities for the Parties;

     HAVING DECIDED to eliminate barriers to trade in services and investments between the Parties, reduce business costs, increase economic efficiency and create favorable conditions for expanding economic cooperation and mutual benefit;

     STRIVING to promote technology transfer and the expansion of trade in services and investment;

     CONVINCED that the establishment of a free trade area covering services and investments will provide a more favorable climate for the promotion and development of economic and trade relations between the Parties;

     STRIVING to create a clear, transparent and predictable legal and commercial framework for business planning that promotes further expansion of trade in services and investments;

     RECOGNIZING the need to protect the legitimate goals of public welfare, among others, health, safety, environmental protection, conservation of living or non-living exhaustible natural resources, integrity and stability of the financial system and public morals;

     REAFFIRMING their right to regulate and to retain the flexibility of the Parties in setting legislative and regulatory priorities;

     WE HAVE AGREED, in accordance with the above, to conclude the following Agreement (hereinafter referred to as "this Agreement"):

chapter 1

INSTITUTIONAL AND GENERAL PROVISIONS

Article 1.1

Creation of a free trade zone

     The Parties hereby establish a free trade area in accordance with article V of the General Agreement on Trade in Services ("GATS").

Article 1.2

Goals

     The objectives of this Agreement are to liberalize and promote trade in services and investments between the Parties in accordance with the provisions of this Agreement.

Article 1.3

General definitions

     For the purposes of this Agreement:

     days means calendar days, including weekends and holidays;

     GATS means the General Agreement on Trade in Services in accordance with Annex 1B to the WTO Agreement;

     Joint Committee means a Joint Committee established in accordance with Article 6.1 (Joint Committee) of this Agreement;

     measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form.;

     territory means:

     for Kazakhstan, the territory of the Republic of Kazakhstan within its land, sea and air borders, including land, waters, subsoil and airspace, in respect of which the Republic of Kazakhstan exercises sovereignty and extends jurisdiction in accordance with its national legislation and international law;

     for the UAE, its mainland, islands, internal waters and territorial sea, including the airspace over such territories, as well as maritime areas beyond the territorial sea over which the United Arab Emirates exercises sovereign rights or jurisdiction, in accordance with national and international law,

     WTO means the World Trade Organization; and

     WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, concluded in Marrakesh on April 15, 1994.

Article 1.4

Relationship with other international agreements

     1. The Parties retain their existing rights and obligations towards each other in accordance with the WTO Agreement and other agreements to which both Parties are parties.

     2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are parties, the Parties shall immediately consult with each other in order to find a mutually acceptable solution.

Article 1.5

Regional and local authorities

     In fulfilling its obligations under this Agreement, each Party shall take such reasonable measures as may be available to it to ensure their compliance by regional and local authorities and management, as well as non-governmental bodies in the exercise of powers delegated by central, regional or local authorities or management in the territory of its State.

Article 1.6

Transparency

     1. Each Party publishes or otherwise makes publicly available its laws, regulations, as well as its relevant international agreements that may affect the operation of this Agreement.

     2. Without prejudice to Article 1.8 of this Agreement, each Party shall respond within a reasonable period of time to specific questions from the other Party and, upon request, provide information to each other on the issues referred to in paragraph 1.

Article 1.7

Competition

     The Parties recognize the importance of applying their competition laws in a transparent and non-discriminatory manner, respecting the principle of fairness and the right to protection when conducting business.

Article 1.8

Confidential information

     1. Each Party, in accordance with its laws and regulations, maintains the confidentiality of information designated by the other Party as confidential.

     2. Nothing in this Agreement requires a Party to disclose confidential information, the disclosure of which would interfere with the Party's law enforcement or otherwise contradict the public interest or harm the legitimate commercial interests of any economic operator.

CHAPTER 2

TRADE IN SERVICES

Article 2.1

Definitions

     For the purposes of this Chapter:

     A service provided in the exercise of governmental authority means any service that is provided on a non-commercial basis and not in competition with one or more service providers.;

     aircraft repair and maintenance services mean those types of activities carried out on an aircraft or part of it when it is decommissioned, and do not include so-called operational maintenance;

     airport operation and management services means the provision of services for the operation of the airport terminal, airfield and other airport infrastructure for remuneration or on a contractual basis. Airport maintenance services do not include air navigation services;

     commercial presence means any form of business or professional institution through:

     (a) the establishment, acquisition or maintenance of a legal entity, or

     (b) establishment or use of a branch or representative office

     on the territory of the Party for the purpose of delivering the service;

     Computer reservation system services mean services provided by computerized systems that contain information about airline schedules, availability, fares, and sales rules through which reservations or ticket issuance can be performed.;

     ground handling services mean the provision of the following services at the airport for remuneration or on a contractual basis: representation, administration and supervision of airlines; passenger service; baggage handling; ramp services; catering (except cooking); handling of air cargo and mail; refueling aircraft; aircraft maintenance and cleaning; ground transportation; flight operations, crew management, and flight planning. Ground handling services do not include self-service; safety; line maintenance; aircraft repair and maintenance; or the management or operation of important centralized airport infrastructure such as de-icing facilities, fuel distribution systems, baggage handling systems, and fixed intra-airport transportation systems;

A legal entity means any institution that has a legal status, is duly incorporated or otherwise organized, according to applicable law, both for profit and for other purposes, and is privately or publicly owned, including any corporation, trust/foundation, partnership, joint venture, sole proprietorship or association;

     a legal entity of the other Party means a legal entity that is either:

     (a) is incorporated or otherwise organized in accordance with the laws of such other Party and is involved in significant business operations in the territory:

     (i) that Party; or

     (ii) any WTO member, and is owned or controlled by individuals of that other Party or entities meeting all the conditions of subparagraph (a) (i); or

     (b) in the case of the provision of a service through a commercial presence, owned or controlled by:

     (i) natural persons of that Party; or

     (ii) the legal entities of that other Party referred to in subparagraph (a);

     The legal entity is:

     (a) "owned" by persons of a Party if more than 50 per cent of the ownership interest in it is in the beneficial ownership of persons of that Party;

     (b) "controlled" by persons of the Party if such persons have the authority to appoint a majority of its directors or otherwise lawfully direct its activities; or

     (c) "related" to another person if he is controlled or controlled by such other person; or when he and the other person are both controlled by the same person;

     measures of the Parties mean measures taken or supported:

     (a) central, regional or local authorities or administrations; and

     (b) non-governmental bodies in the exercise of powers delegated by central, regional or local authorities or management;

     The measures of the Parties affecting trade in services include measures in relation to:

     (a) purchase, payment or use of the service;

     (b) access to and use of services in connection with the provision of services for which, according to the requirements of the Party, there is a requirement for a wide public offering; and

     (c) the presence, including commercial presence, of persons of a Party for the provision of services in the territory of the other Party;

     A monopoly service provider means any person, public or private, who is authorized or officially or actually established in the relevant market of the territory of the Party as the sole provider of such a service.;

     an individual of the other Party:

     (a) for Kazakhstan means a citizen of Kazakhstan, a citizen of Kazakhstan 1 or a permanent resident of Kazakhstan2;

     (b) for the UAE, means a citizen or permanent resident of the UAE; and

     person means a natural or legal person;

     the service sector means:

     (a) with respect to a specific obligation, one or more or all subsectors of that service, as specified in the Party's List; or

     (b) in other respects, this entire service sector, including all its subsectors;

     The sale and marketing of air transport services means the opportunity for the relevant air carrier to freely sell and market its air transport services, including all aspects of marketing such as market research, advertising and distribution. This activity does not include the pricing of air transport services and the applicable conditions.;

     services include any service in any sector, with the exception of services provided in the exercise of government functions;

     service consumer means any person who receives or uses the service;

     a service of the other Party means a service that is delivered:

     (a) from the territory or in the territory of the State of such other Party, or in the case of maritime transport, by a vessel registered under the laws of such other Party, or by a person of such other Party who provides a service for the full or partial operation and/or use of the vessel, or;

     (b) in the case of the provision of a service through a commercial presence or through the presence of natural persons, the service provider of such other Party;

     service provider means any person of the Party who supplies the service;4

     The delivery of a service includes the production, distribution, marketing, sale, and delivery of a service;

     trade in services is understood as the supply of a service:

     (a) from the territory of a Party to the territory of the other Party;

     (b) in the territory of a Party to the consumer of the services of the other Party;

     (c) a Party's service provider through a commercial presence in the territory of the other Party;

     (d) the service provider of the Party through the presence of natural persons of the Party in the territory of the other Party;

     transportation rights mean the right to carry out regular and irregular flights and/or to transport passengers, cargo and mail for remuneration or for hire from, to or over the territory of a Party, including points to be serviced, routes to be operated, types of transportation to be carried out, and the capacity that Information will be provided on the fares charged and their conditions, as well as airline destination criteria, including criteria such as quantity, ownership, and control.

     ______________

     1Kandas is an ethnic Kazakh and (or) a member of his family of Kazakh nationality who had not previously been citizens of Kazakhstan, arrived in their historical homeland and received the appropriate status in accordance with the procedure established by the Law of the Republic of Kazakhstan dated July 22, 2011 No. 477-IV "On Population Migration".

     2IN relation to Kazakhstan, the term "permanent resident" means any natural person who has a valid residence permit in accordance with the legislation of the Republic of Kazakhstan.

     3 In relation to the UAE, the term "permanent resident" means any natural person who holds a valid residence permit in accordance with UAE law.

     4If the service is not supplied directly by a legal entity, but through other forms of commercial presence, such as a branch or representative office, the service provider (i.e., the legal entity) is nevertheless provided with the treatment provided for service providers in accordance with this Agreement as a result of such presence. This regime applies to the presence through which the service is delivered, and it is not necessary to extend it to any other structures of the supplier located outside the territory where the service is delivered.

Article 2.2

Scope and coverage

     1. This Chapter applies to measures of the Parties affecting trade in services.

     2. This Chapter does not apply to:

     (a) legislation or requirements governing public procurement;

     (b) services provided in the exercise of government functions;

     (c) Subsidies or grants provided by a Party, including Government-backed loans, guarantees and insurance; and

     (d) measures affecting natural persons of a Party seeking access to the labour market of the other Party, or measures relating to citizenship, residence or permanent employment; and

     (e) with respect to air transport services, measures affecting air traffic rights or measures affecting services directly related to the exercise of air traffic rights, with the exception of measures affecting:

     (i) Aircraft repair and maintenance services;

     (ii) sale and marketing of air transport services;

     (iii) Computer reservation system services;

     (iv) airport operations and management services; and

     (v) Ground handling services.

     3. Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into its territory or their temporary stay in its territory, including measures necessary to protect the integrity and ensure the orderly movement of natural persons across its border, provided that such measures are not applied in such a way as to nullify or reduce benefits, received by either Party in accordance with the terms of a specific obligation.5

     ______________________________

     5) The fact that individuals of a certain State are required to obtain visas and the absence of such a requirement in relation to other States is not considered as canceling or reducing benefits according to a specific obligation.

Article 2.3

Lists of specific obligations

     1. Each Party sets out the specific obligations it undertakes in accordance with Articles 2.5, 2.6 and 2.7 in its List of Specific Obligations.

     2. For the sectors in which such commitments are made, each List of Specific Commitments should include:

     (a) Limits, restrictions and conditions on market access;

     (b) Conditions and reservations regarding national treatment;

     (c) Making additional commitments;

     (d) where possible, the time frame for fulfilling the relevant obligations; and

     (e) the effective date of such obligations.

     3. Measures incompatible with Articles 2.5 and 2.6 are entered in the column related to Article 2.5. In this case, it is considered that this entry also serves as an indication of a condition or reservation also under Article 2.6.

     4. The list of specific obligations of the Parties is set out in Annex 2A (List of specific obligations of the UAE) and Annex 2B (List of specific obligations of Kazakhstan).

Article 2.4

Most-favored-nation regime

1. With the exception of the cases provided for in its list of most-favored-nation exemptions contained in Annex 2C (UAE - List of MFN Exemptions) and Annex 2D (Kazakhstan - List of MFN Exemptions), the Party shall immediately and unconditionally provide, in respect of all measures affecting the supply of services, to the services and service providers of the other Party. A regime no less favorable than the one it provides for similar services and service providers of any party that is not a party to this Agreement.

     2. The obligations of paragraph 1 do not apply to:

     (a) treatment provided in accordance with other existing or future agreements concluded by one of the Parties and notified in accordance with Articles V or V bis of the GATS, as well as treatment provided in accordance with Article VII of the GATS;

     (b) the regime provided by the UAE to the services and service providers of the GCC member States in accordance with the GCC Economic Agreement and the regime provided by the UAE under the Greater Arab Free Trade Area (GAFTA).

     3. The rights and obligations of the Parties with respect to benefits provided to neighboring countries are governed by paragraph 3 of Article II of the GATS, which is hereby incorporated into this Agreement and is an integral part of it, mutatis mutandis.

     4. If, after the entry into force of this Agreement, a Party enters into any agreement on trade in services with a party that is not a party to this Agreement, it must consider, at the request of the other Party, including in this Agreement a regime no less favorable than that provided for by agreement with a party that is not a party to this Agreement. The Parties shall take into account the circumstances in which a Party enters into any agreement on trade in services with a party that is not a party to this Agreement.

Article 2.5

Market access

     1. With regard to market access through the means of supply specified in the definition of "trade in services" contained in Article 2.1, each Party shall provide services and service providers of the other Party with treatment no less favourable than that provided in accordance with the limits, restrictions and conditions agreed upon and specified in the List of Specific Obligations6 under this Agreement. Agreements.

     2. In sectors where market access commitments are made, measures that a Party does not support or establish, either within a regional division or across the entire territory, unless otherwise specified in its List of Specific Commitments, are defined as:

     (a) restrictions on the number of service providers, either in the form of quantitative quotas, monopolies, exclusive service providers, or economic feasibility test requirements;

     (b) limits on the total value of service transactions or assets in the form of quantitative quotas or requirements for an economic feasibility test;

     (c) restrictions on the total number of transactions with services or the total volume of production of services, expressed in the form of established quantitative units of measurement in the form of quotas or the requirement of an economic feasibility test;7

     (d) restrictions on the total number of individuals who may be employed in a particular service sector, or on the number of individuals that a service provider may hire who are necessary and directly relevant to the delivery of a particular service, in the form of quantitative quotas or the requirement of an economic feasibility test;

     (e) measures that restrict legal entities or joint ventures or require certain forms of them through which the service provider can deliver the service; and

     (f) restrictions on the participation of foreign capital in the form of the maximum share of foreign equity or the total value of individual or aggregate foreign investments.

Article 2.6

National regime

     1. With respect to the service sectors included in the List of Specific Obligations, and subject to any conditions and requirements specified therein, each Party shall provide the services and service providers of the other Party with treatment no less favorable than that which it provides to its own similar services and service providers in respect of all measures affecting the supply of services..8

     2. A Party may comply with the requirement of paragraph 1 by providing the services and service providers of the other Party with either formally the same or formally different treatment compared to that which it provides to its own similar services or service providers.

     3. Formally the same or formally different regime is considered less favorable if it changes the conditions of competition in favor of the services or service providers of this Party, compared with similar services or service providers of the other Party.

     ____________________

     6If a Party commits to market access in relation to the supply of a service through the method of supply specified in subparagraph (a) of the definition of "trade in services" in Article 2.1, and if the cross-border movement of capital is an essential part of the service itself, that Party undertakes to allow such capital movement in this regard. If a Party commits to market access in relation to the supply of a service through the method of supply specified in subparagraph (c) of the definition of "trade in services" in Article 2.1, it undertakes to allow the appropriate transfer of capital to its territory.

     7 Paragraph 2 (c) does not cover measures by a Party that limit the costs of providing services.

     8specific obligations assumed on the basis of this article cannot be interpreted as the right to demand compensation from any of the Parties for the loss of competitive advantages arising from the foreign nature of the relevant services or service providers.

Article 2.7

Additional obligations

     The Parties may negotiate obligations regarding measures affecting trade in services that are not subject to inclusion in the lists in accordance with Articles 2.5 and 2.6, including those related to qualifications, standards and licensing. Such obligations should be included in the List of specific Obligations of the Party.

Article 2.8

Changing lists

     Upon written request, the Parties shall consult to consider any modification or withdrawal of a specific obligation in the List of Specific Obligations of the requesting Party. Consultations should be initiated within three months after the request is submitted by the requesting Party. During the consultations, the Parties strive to ensure that the overall level of mutually beneficial commitments is maintained, no less favorable for trade than those provided for in the List of Specific Commitments prior to such consultations. Changes to the Lists are subject to any procedures adopted by the Joint Committee established in Chapter 6 (Administration of the Agreement).

Article 2.9

Internal regulation

     1. In sectors where specific commitments have been made, each Party shall ensure that all measures of general application affecting trade in services are applied in a reasonable, objective and impartial manner.

     2. (a) Each Party shall maintain or establish, as soon as practicable, judicial, arbitration or administrative authorities or procedures that, at the request of the affected service provider, ensure the prompt review and, where justified, proper correction of administrative decisions affecting trade in services. In cases where these procedures are not independent of the body authorized to make such administrative decisions, the Party ensures that the procedures actually ensure an objective and impartial review.;

     (b) The provisions of subparagraph (a) may not be interpreted as requiring a Party to establish such bodies or procedures where this would be inconsistent with its constitutional order or the nature of its judicial system.

     3. If a permit is required for the supply of services in sectors where specific obligations are assumed, each Party shall strive to ensure that:

     (a) inform the applicant of the decision regarding the application within a reasonable period of time after the filing of the application, which is considered complete in accordance with its legislation.;

     (b) in the case of an incomplete application, identify, at the request of the applicant, all additional information that is required to complete the application and provide an opportunity to remedy the deficiencies within a reasonable time, as far as possible;

     (c) at the request of the applicant, provide information on the status of the application without undue delay.;

     (d) if the application is terminated or rejected, inform the applicant, if possible, in writing and without delay, of the reasons for such actions. The applicant will have the opportunity to resubmit a new application at his discretion.;

     (e) its competent authorities provided an estimated time frame for processing the license application;

     (f) its competent authorities have decided to grant or refuse to grant a license without undue delay.

     4. In order to ensure that measures related to qualifications and procedures, technical standards and licensing requirements do not create unnecessary barriers to trade in services, each Party shall strive to ensure that such measures:

     (a) based on objective and transparent criteria such as competence and ability to provide services;

     (b) were not more burdensome than necessary to ensure the quality of services; and

     (c) in the case of licensing procedures, they were not in themselves a restriction on the provision of services.

5. In determining whether a Party complies with the obligation under paragraph 4, the international standards of the relevant international organizations applied by that Party shall be taken into account.

     6. In sectors where specific commitments are made with respect to professional services, each Party shall provide appropriate procedures for verifying the competence of the other Party's specialists.

     7. The Parties shall jointly review the results of negotiations on the rules of internal regulation in accordance with Article VI.4 of the GATS with a view to including them in this Chapter.

Article 2.10

Confession

     1. In order to fully or partially meet its standards or criteria for authorizations, licensing or certification of service providers, and subject to the requirements of paragraph 3, a Party may recognize or encourage its relevant competent authorities to recognize education or experience gained, requirements fulfilled, and licenses or certificates issued by the other Party. Such recognition, which can be achieved through harmonization or otherwise, may be based on an agreement or arrangement between the Parties or their respective competent authorities, or may be granted unilaterally.

     2. If a Party recognizes, by agreement or arrangement, the education or experience gained, the requirements fulfilled, as well as licenses or certificates issued in a country that is not a party to this Agreement, this Party provides the other Party with a sufficient opportunity to negotiate or negotiate its accession to such an agreement or arrangement, existing or future by a similar agreement or arrangement. If a Party grants recognition unilaterally, it provides the other Party with an appropriate opportunity to show that the education, experience, licenses or certificates received, or requirements fulfilled in the territory of that other Party should also be recognized.

     3. A Party shall not implement recognition in such a way that it is a means of discrimination between the other Party and parties that are not parties to this Agreement in the application of its standards or criteria for the issuance of permits, licensing or certification of service providers, or a hidden restriction on trade in services.

Article 2.11

Payments and transfers

     1. Except in the circumstances provided for in Article 2.14, the Party does not apply restrictions on international transfers and payments for current transactions related to its specific obligations.

     2. Nothing in this Chapter shall affect the rights and obligations of a Party that is a member of the International Monetary Fund in accordance with the articles of the Agreement on the International Monetary Fund, including the use of foreign exchange transactions that are compatible with the articles of the Agreement on the International Monetary Fund, provided that the Party does not impose restrictions on any capital transactions that do not consistent with its specific obligations under this Agreement regarding such transactions, except in the following cases:, referred to in article 2.14 or at the request of the International Monetary Fund.

Article 2.12

Monopolies and exclusive service providers

     1. The rights and obligations of the Parties in relation to monopolies and exclusive service providers are regulated by paragraphs 1, 2 and 5 of Article VIII of the GATS, which are included in this Chapter and are part of it, mutatis mutandis.

     2. If a Party has reason to believe that a monopoly service provider of the other Party is acting in a manner inconsistent with the provisions of paragraphs 1 and 2 of Article VIII of the GATS, it may require the other Party that created, supported or authorized such a provider to provide specific information regarding the relevant operations.

Article 2.13

Business practices

     The rights and obligations of the Parties in relation to business practices are regulated by Article IX of the GATS, which is included in this Chapter and forms part of it, mutatis mutandis.

Article 2.14

Restrictions to protect the balance of payments

     1. In cases of serious difficulties with the balance of payments and external financial difficulties or their threat, the Parties may accept or maintain restrictions on trade in services for which it has entered into specific obligations, including payments or transfers for transactions related to such obligations.

     2. Restrictions specified in paragraph 1:

     (a) shall not discriminate between the other Party and a party that is not a party to this Agreement;

     (b) must comply with the articles of Agreement of the International Monetary Fund;

     (c) should be such that unnecessary damage to the commercial, economic and financial interests of the other Party is avoided;

     (d) must not exceed the limits of necessity in the circumstances described in paragraph 1;

     (e) should be temporary and gradually eliminated as the situation referred to in paragraph 1 improves.

     3. When determining the scope of such restrictions, a Party may give preference to the supply of services that are more important for their economic or development programs. However, such restrictions are not established or maintained in order to protect a particular service sector.

     4. Any restrictions established or maintained in accordance with paragraph 1, or any changes to them, must be immediately communicated to the Joint Committee.

Article 2.15

Denial of benefits

     A Party may deny the benefits of this Chapter.:

     (a) to supply the service if it is determined that the service is provided from or in the territory of a non-party country;

     (b) in the case of the provision of a maritime transportation service, if it is established that the service has been provided:

     (i) a vessel registered in accordance with the laws of a non-party country, and

     (ii) a person who manages and/or uses the vessel in whole or in part, but is not a party;

     (c) to a service provider that is a legal entity, if it proves that it is not a service provider of the other Party.

Article 2.16

Revision

     1. In order to further liberalize trade in services between them, the Parties may, upon request, jointly review their Lists of Specific Obligations and Lists of Exceptions to the most-favored-nation regime, taking into account any changes in the liberalization of services as a result of ongoing work under the auspices of the WTO.

     2. The first such review will take place within a time limit to be determined by the Joint Committee and will be carried out in accordance with article 6.1 (Joint Committee).

Article 2.17

Applications

     The following appendices are integral parts of this Chapter:

     Appendix 2A (List of specific UAE obligations)

     Appendix 2B (List of specific obligations of Kazakhstan)

     Appendix 2C (UAE - List of exemptions from MFN)

     Appendix 2D (Kazakhstan - List of exemptions from MFN)

     Appendix 2E (Telecommunication services)

     Appendix 2F (Financial Services).

APPENDIX 2A

LIST OF SPECIFIC OBLIGATIONS OF THE UAE

     INTRODUCTORY NOTE:

     1. This document establishes a List of specific obligations of the United Arab Emirates (UAE) under the chapter "Trade in Services" Agreements between the UAE and Kazakhstan on Trade in Services and Investments (TSIA). This introductory note should be considered as an integral part of the UAE List.

     2. The list was prepared on the basis of the Classification List of Service Sectors contained in document MTN.GNS/W/120. References to CPC codes refer to CPC codes used in the Preliminary Classification of Basic Products (Statistical Document Series M, No. 77, Department of International Economic and Social Affairs, United Nations Statistical Office, New York, 1991), and are intended to determine the scope of obligations, unless otherwise indicated.

4 "Marine cargo handling services" means activities carried out by stevedoring companies, including terminal operators, but not including the direct activities of dockworkers, when this workforce is organized independently of stevedoring companies or terminal operators. The activities covered include the organization and control of: loading/unloading cargo on/off the ship; securing / untying cargo; receiving/ delivering and responsible storage of cargo before shipment or after unloading.

     5 "Container station and depot services" means the activity of storing containers, whether in port areas or on land, for the purpose of loading/disassembling, repairing and making them available for shipment.

     6 "Maritime agency services" means the activity of representing, within a given geographical region, as an agent, the business interests of one or more shipping lines or shipping companies for the following purposes:

     - marketing and sale of shipping and related services, from pricing to invoicing and issuing bills of lading on behalf of companies, purchase and resale of necessary related services, preparation of documentation and provision of business information;

     - activities on behalf of companies that organize the ship's entry or receive cargo when necessary."

     7"Forwarding services" means the activity of organizing and controlling shipping operations on behalf of shippers through the purchase of transportation and related services, the preparation of documentation and the provision of business information."

     8 Operations and functions may be governed by specific service obligations established by operators with the consent of government agencies.

APPENDIX 2E

TELECOMMUNICATION SERVICES

Article 2E.1

Scope and definitions

     1. This Annex applies to measures of the Parties affecting trade in telecommunication services1. It does not apply to measures related to the broadcast or cable distribution of radio or television programs.2

     2. Nothing in this Annex should be interpreted as:

     (a) a requirement for a Party to oblige any enterprise to establish, build, acquire, lease, operate or provide telecommunication transmission networks or services if such networks or services are not generally offered to the public in accordance with the legislation of the Party;

     (b) a requirement for a Party to require any enterprise engaged solely in the transmission or distribution by cable of radio or television programs to provide its broadcasting or cable television facilities as a public telecommunication transmission network; or

     (c) preventing a Party from prohibiting persons operating private networks from using their networks to provide publicly available telecommunication transmission networks or services to third parties.

     3. For the purposes of this Application:

     regulatory body means the body or bodies entrusted with any of the regulatory tasks in relation to the issues mentioned in this Annex;

     critical facilities mean facilities of a public telecommunication transmission network or services that:

     (a) are provided exclusively or primarily by one or a limited number of suppliers; and

     (b) cannot be economically or technically replaced to provide the service;

     A major supplier is a supplier that has the ability to significantly influence the terms of participation (in terms of price and supply) in the relevant market of basic telecommunications services as a result:

     (a) control of critical facilities; or

     (b) using its position in the market;

     A public telecommunication network means a public telecommunication infrastructure that allows telecommunications communications to be carried out between or among certain endpoints of the network;

     public telecommunication transmission network service means any telecommunication transmission service that is directly or actually required by a Party for widespread provision to the public. Such services may include, but are not limited to, telegraphy, telephone, telex, and data transmission, typically involving real-time transmission of consumer-provided information between two or more locations without any end-to-end changes in the form of consumer information;

     An interconnection reference proposal means an interconnection proposal put forward by a major provider that is sufficiently detailed to allow the provider of publicly available telecommunications services to know the tariffs and conditions for obtaining an interconnection;

     telecommunications means the transmission of electromagnetic signals such as sound, image data, and any combination of these. The telecommunications services sector does not cover economic activities consisting of the provision of content that requires telecommunications services to transmit.

     _______________________________

     1 "Trade in telecommunication services" is understood in accordance with the definitions contained in article 2.1 (Definitions) and also includes measures regarding access to and use of public telecommunication networks and services.

     2 "Broadcasting" is defined in accordance with the relevant domestic legislation of each Party.

Article 2E.2

Competitive guarantees

     1. Each Party shall take appropriate measures to prevent the involvement or continuation of anti-competitive practices by suppliers who are individually or collectively major suppliers.

     2. The anti-competitive practices mentioned in paragraph 1 include, in particular:

     (a) Engaging in anti-competitive cross-subsidization;

     (b) using information obtained from competitors with anticompetitive results; and

     (c) failure to provide other service providers with timely technical information about critical facilities and commercially relevant information that they need to provide services.

Article 2E.3

Connection

     1. This article applies to communications with suppliers providing telecommunications networks or public services in order to allow users of one supplier to communicate with users of another supplier and gain access to services provided by another supplier where specific obligations are assumed.

     2. The point of connection in the network is a matter of negotiation between service providers and technical feasibility. If the service providers encounter difficulties during these negotiations, the competent authority will be able to intervene and make a decision in accordance with the relevant legislation of the Parties. Such negotiations should ensure the conclusion of accession agreements.:

     (a) on non-discriminatory terms (including technical standards and specifications) and rates, with quality no less favorable than that provided for its own similar services or for similar services from unaffiliated service providers, or for its subsidiaries or other affiliated entities; and

     (b) in a timely manner, on terms (including technical standards and specifications) and cost-oriented tariffs that are transparent, reasonable, economically feasible, and sufficiently separated so that the supplier does not have to pay for network components or facilities that it does not require to provide services.

     3. Each Party shall ensure that providers of telecommunication transmission networks or public services in its territory take appropriate measures to protect, inter alia:

     (a) confidentiality of individuals in the processing and dissemination of personal data;

     (b) confidentiality of individual records; and

     (c) confidentiality of commercial information related to or related to telecommunications service providers and end users. The data and information received by the telecommunications service provider should be used only for the purpose of providing these services.

     4. Nothing in this Application restricts the right of a Party to protect personal data, personal integrity and confidentiality of individual records and accounts, as well as other information protected by law.

Article 2E.4

Universal service

     1. Each Party has the right to determine the type of universal service obligation it wishes to have.

     2. The measures of the Parties regulating universal services should be transparent, objective and non-discriminatory. They should also be neutral with respect to competition and not be more burdensome than is necessary for the universal service defined by the Party.

Article 2E.5

Licensing procedure

     1. If a license or concession is required for the provision of telecommunication services, the competent authority of the Party must make publicly available the following information:

     (a) the terms of such license or concession; and

     (b) the period of time that is normally required to make a decision on an application for a license or concession.

     2. If a license or concession is required to provide telecommunications services, and if the applicable conditions are met, the competent authority of the Party shall grant the applicant a license or concession in accordance with the licensing criteria and rules of that Party within a reasonable period of time after submitting the application, if the application is considered completed in accordance with the laws of that Party.

     3. The competent authority of the Party shall notify the applicant of the results of the examination of his application immediately after the decision is made. In the event of a decision to refuse to grant a license or concession, the competent authority of the Party, upon request, informs the applicant of the reason for the refusal.

Article 2E.6

Independent regulatory body

     1. The regulatory authority of each Party in the field of telecommunications services should be separate from and not accountable to any provider of basic telecommunications services.

     2. Each Party ensures that the decisions and procedures used by its regulatory body are impartial towards all market participants.

Article 2E.7

Limited resources

     1. Each Party shall ensure that its procedures for the allocation and use of limited telecommunications resources, including frequencies, numbers and rights of way, are carried out in an objective, timely, transparent and non-discriminatory manner. Each Party publishes the current status of the allocated frequency bands, but a detailed definition of the frequencies allocated for specific government purposes is not required.

     2. When allocating spectrum for commercial telecommunications services, each Party tends to rely, as a rule, on market approaches, fully taking into account its national interests.

Article 2E.8

Dispute resolution in telecommunications

     Each Party ensures that:

     (a) Suppliers may have contacted their regulatory authority or other relevant body to resolve disputes with major suppliers;

     (b) a supplier who has requested to join a major supplier could, at any time or after a reasonable publicly determined period of time, contact its regulatory authority to resolve disputes regarding the relevant terms and rates of joining that major supplier within a reasonable time; and

(c) Suppliers who are influenced by the decisions of its regulatory body could apply to an independent administrative body and/or court in accordance with the legislation of the Party.

Article 2E.9

Transparency

     In applying Article 2.2 (Scope and scope), each Party shall ensure that relevant information on the conditions of access to and use of public telecommunication networks and services is available to eligible licensed organizations, including:

     (a) tariffs and other terms of service;

     (b) specifications of technical connections to such networks and services;

     (c) Information on the authorities responsible for the preparation and adoption of standards affecting such access and use;

     (d) conditions relating to the connection of terminals or other equipment to a public telecommunications network; and

     (e) notification, registration or licensing requirements, if any.

Article 2E.10

Flexibility in the choice of technologies

     1. Neither Party may prevent providers of public telecommunication transmission services from being able to flexibly choose the technologies they use to provide their services, including commercial mobile wireless services, provided that the requirements necessary to meet the legitimate interests of public policy are met, provided that any measure limiting such choice, It is not developed, adopted, or applied in a way that creates unnecessary barriers to trade.

     2. For greater certainty, nothing in this Annex should be interpreted as preventing the telecommunications regulatory authority from requiring an appropriate license or other authorization to provide each public telecommunication transmission service.

APPENDIX 2F

FINANCIAL SERVICES

     1. Scope and definition

     (a) This Annex applies to measures affecting the supply of financial services. References to the provision of financial services in this Annex mean the provision of services as defined in Article 2.1 (Definitions).

     (b) For the purposes of subparagraph 2 (b) of Article 2.2 (Scope and scope), "services provided in the exercise of functions of governmental authority" means the following:

     (i) the types of activities carried out by the central bank or the monetary and financial authority, or other government structure in carrying out monetary or exchange rate policy;

     (ii) activities that form part of the statutory social security system or State pension schemes; and

     (iii) other types of activities carried out by a government entity at the expense or under guarantee, or using the financial resources of the Government.

     (c) For the purposes of subparagraph 2 (b) of Article 2.2 (Scope and scope), if a Party permits its financial service providers to carry out any of the activities referred to in subparagraphs (b) (ii) or (b) (iii) of this paragraph in competition with a government entity or supplier financial services, the term "service" includes such types of activities.

     (d) The definition of "service provided in the exercise of governmental authority" in Article 2.1 (Definitions) does not apply to the services covered by this Annex.

     2. Internal regulation

     (a) Notwithstanding any other provisions of Chapter 2 (Trade in services), a Party is not prevented from taking precautionary measures, including protecting investors, depositors, policy holders or proxies of a financial service provider, or to ensure the integrity and stability of the financial system. If such measures do not comply with the provisions of Chapter 2 (Trade in services), they should not be used as a means of evading a Party's specific obligations under Chapter 2 (Trade in services).

     (b) Nothing in Chapter 2 (Trade in services) should be interpreted as requiring a Party to disclose information related to the affairs and accounts of individual clients, or any other confidential or proprietary information held by government agencies.

     3. Recognition

     (a) A Party may recognize the precautionary measures of any other country in determining how it applies measures related to financial services. Such recognition, which can be achieved through harmonization or otherwise, may be based on an agreement or arrangement with the country concerned, or may be granted unilaterally.

     (b) A Party that is a Party to such an agreement or arrangement referred to in subparagraph (a), both future and current, shall provide other interested parties with an appropriate opportunity to negotiate their accession to such agreements or arrangements, or to negotiate comparable agreements or arrangements with it, which, depending on the circumstances they could contain equivalent regulation, supervision, a mechanism for implementing such regulation and, if possible, procedures, concerning the exchange of information between the parties to such agreements and arrangements. If a Party grants recognition unilaterally, it provides an appropriate opportunity for any other party to demonstrate that such circumstances exist.

     4. Dispute resolution

     The arbitration panel for disputes concerning precautionary Measures and Other Financial Issues must have the necessary competence corresponding to the specifics of the financial service on which the dispute is being conducted.

     5. Definitions

     For the purposes of this Application:

     (a) A financial service is any financial service offered by a Party's financial service provider. Financial services include all insurance and related services, as well as all banking and other financial services (other than insurance). Financial services include the following types of services:

     Insurance and related services

     (i) Direct insurance (including co-insurance):

     (A) Life

     (B) other than life insurance

     (ii) Reinsurance and retrocession;

     (iii) Insurance intermediation, such as brokerage and agency;

     (iv) Insurance support services such as consulting, actuarial, risk assessment and claims settlement services.

     Banking and other financial services (excluding insurance)

     (v) Accepting deposits and other repayable funds from the public;

     (vi) All types of loans, including consumer loans, collateral loans, factoring and commercial financing;

     (vii) Financial leasing;

     (viii) All types of payment and money transfer services, including credit, debit and debit cards, traveler's checks and bank bills;

     (ix) Guarantees and obligations;

     (x) Trading at one's own expense and at the expense of clients on a currency exchange, over-the-counter market, or otherwise:

     (A) money market instruments (including cheques, bills of exchange, certificates of deposit);

     (B) Foreign currency;

     (C) derivative products, including, but not limited to, futures and options;

     (D) instruments related to exchange rates and interest rates, including swap agreements and forward interest rate agreements;

     (E) transferable securities;

     (F) other instruments and financial assets that may be the subject of the transaction, including gold and silver bullion.

     (xi) Participation in issues of all types of securities, including subscription and placement arrangements, as an agent (through public or private subscription) and provision of services related to such issues;

     (xii) Brokerage operations in the money market;

     (xiii) Asset management, such as cash or a securities portfolio, all forms of collective investment management, pension fund management, custody services, depository and trust services;

     (xiv) Settlement and clearing services for financial assets, including securities, derivative products and other instruments that may be the subject of a transaction;

     (xv) Provision and transmission of financial information, and processing of financial data and related software from other financial service providers;

     (xvi) Advisory, intermediary and other ancillary financial services for all types of activities listed in subparagraphs (v)-(xv), including the provision of reference and materials related to lending and credit analysis, research and recommendations on direct and portfolio investments, recommendations on acquisition, reorganization and corporate strategy.

     (b) Financial service provider means any natural or legal person of a Party who wishes to supply or provides financial services, but the term "financial service provider" does not include a government agency.

     (c) "Public institution" means:

     (i) the Government, central bank, or monetary institution of a Party, or a structure owned or controlled by a Party that is primarily engaged in the performance of governmental functions or activities for the benefit of the Government, not including a structure that is primarily engaged in the provision of financial services on commercial terms; or

     (ii) a private entity that performs functions that are normally performed by a central bank or a monetary institution in the performance of these functions.

CHAPTER 3

INVESTMENT PROMOTION

Article 3.1

Kazakhstan-UAE Bilateral Investment Agreement

The Parties note the existence and confirm the Agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates on the Promotion and Mutual Protection of Investments, signed in Abu Dhabi on March 24, 2018 (the Kazakhstan-UAE Bilateral Investment Agreement), as well as any subsequent amendments thereto.

Article 3.2

Chapter objectives and investment promotion

     1. The Parties confirm their commitment to promote the creation of an attractive investment climate and to ensure favorable conditions for long-term economic development and diversification of trade between their States.

     2. Each Party, in accordance with its national legislation and the international obligations of its States, shall take appropriate measures to stimulate and promote investments of the other Party in the territory of its State.

     3. The general objectives of this Chapter are:

     (a) Promoting and expanding investment and economic cooperation between the Parties;

     (b) monitoring investment relations, identifying opportunities for investment expansion and investment-related issues that may be relevant for discussion at existing venues;

     (c) at the request of the Parties, consultations on specific investment issues of common interest;

     (d) implementation of work on the expansion of investment flows;

     (e) Identify obstacles to investment flows and work to eliminate them; and

     (f) Seeking the opinion of the private sector, where appropriate.

Article 3.3

Non-application of dispute settlement procedure

     This Chapter is not subject to Chapter 4 (Dispute Resolution).

chapter 4

DISPUTE RESOLUTION

Article 4.1

Goals

     The purpose of this Chapter is to establish an effective and efficient mechanism for resolving disputes between the Parties arising over the interpretation and application of this Agreement, with a view to reaching, where possible, a mutually acceptable solution.

Article 4.2

Cooperation

     The Parties will strive to agree on the interpretation and application of this Agreement, and will make every attempt to reach a mutually acceptable solution to any issue that may affect its operation through cooperation.

Article 4.3

Definitions

     For the purposes of this Chapter and Appendix 4A (Rules of Arbitration) and Appendix 4B (Code of Ethics for Arbitrators):

     Arbitration Group means an Arbitration Group formed in accordance with Article 4.9;

     The Parties to the dispute mean both the Plaintiff's Side and the Defendant's Side.

     Plaintiff Party means the Party filing a complaint under this Chapter;

     Respondent Party means the Party against whom a complaint is filed under this Chapter;

     Chairman means an arbitrator who acts as Chairman of the Arbitration Panel;

     DRS means an Agreement on Rules and Procedures Governing Dispute Resolution contained in Annex No. 2 to the WTO Agreement.;

     The case procedure means arbitration proceedings.

Article 4.4

Scope of application

     1. Unless otherwise provided in this Agreement, the provisions of this Chapter shall apply to any dispute between the Parties arising from the interpretation or application of the provisions of this Agreement (hereinafter referred to as the "covered provisions") when either Party believes that the other Party is violating any provision of this Agreement.

     2. For the sake of clarity, this Chapter does not apply to non-infringement disputes and other situational complaints.

Article 4.5

Contact points

     1. Each Party shall designate a contact point to facilitate communication between the Parties in respect of any dispute initiated in accordance with this Chapter.

     2. Any request, notification, written submission or other document made in accordance with this Chapter shall be sent to the other Party through the contact point designated by it.

Article 4.6

Request for information

     Prior to sending a request for consultations, good offices, conciliation or mediation in accordance with Articles 4.7 or 4.8, respectively, the Party to the dispute may request in writing any relevant information regarding the disputed measure. The party to the dispute to whom such a request is sent shall make every effort to provide the requested information in a written response, which must be submitted no later than 20 days after the date of receipt of the request.

Article 4.7

Consultations

     1. The Parties will seek to resolve any dispute referred to in Article 4.4 through consultations in good faith with a view to reaching a mutually acceptable solution.

     2. A Party shall seek advice by sending a written request to the other Party stating the reasons for the request, including the measure under consideration and a description of its factual and legal basis, indicating the covered provisions that it considers applicable.

     3. The Party to which the request for consultations is addressed shall respond to the request immediately, but no later than 10 days after the date of receipt of the request. Consultations are held within 30 days from the date of receipt of the request. Consultations are considered completed within 60 days from the date of receipt of the request, unless otherwise agreed by the Parties.

     4. Consultations on urgent matters, including those related to seasonal services, are held within 15 days from the date of receipt of the request. Consultations are considered completed within 30 days, unless the Parties agree otherwise.

     5. During the consultations, each Party shall make every effort to provide relevant information allowing for a full study of the measure under consideration, including how this measure affects the operation and application of this Agreement.

     6. Consultations, including all disclosed information and positions taken by the Parties during consultations, are confidential and do not infringe on the rights of any of the Parties during any proceedings.

     7. Consultations may be conducted in person or using any other means of communication agreed upon by the Parties. Unless otherwise agreed by the Parties, consultations, if conducted in person, are conducted on the territory of the Party to which the request is addressed.

     8. If the Party to whom the request has been sent does not respond to the request for consultations within 10 days from the date of its receipt, or if consultations are not held within the time limits set out in paragraph 3 or paragraph 4, respectively, or if the Parties have agreed not to hold consultations, or if consultations have been held and no mutually acceptable solution has been reached. The Party requesting consultations may invoke Article 4.9.

Article 4.8

Mediation, reconciliation or mediation

     1. The parties may at any time agree to conduct mediation, conciliation or mediation procedures. They can start at any time and be terminated by either Party at any time.

     2. Proceedings under mediation, conciliation or mediation procedures, and in particular the positions taken by the Parties to the dispute during such proceedings, are confidential and do not prejudice the rights of either Party in any further proceedings under this Chapter or any other proceedings before bodies chosen by the Parties.

     3. If the Parties agree, mediation, conciliation or mediation procedures may continue while the proceedings of the Arbitration Panel are ongoing in accordance with this Chapter.

Article 4.9

Establishment of an Arbitration Panel

     1. The complaining Party may request the establishment of an Arbitration Panel if:

     (a) The respondent Party does not respond to the request for consultations in accordance with the time limits specified in Article 4.7;

     (b) the consultations referred to in Article 4.7 do not take place or do not resolve the dispute within 60 days or 30 days in respect of urgent matters, including those related to seasonal services, after the date of receipt of the request for consultation by the Respondent Party.

     2. The request to establish an Arbitration Panel must be submitted in writing to the other Party and must contain a definition of the measure in dispute and the factual basis of the complaint, as well as the legal basis, indicating the relevant provisions covered in a form sufficient to clearly state the problem.

Article 4.10

Composition of the Arbitration Panel

     1. Unless the Parties to the dispute agree otherwise, the Arbitration Panel should consist of three arbitrators, and the arbitrators should not fall under any of the following criteria:

     (a) be a citizen of Kazakhstan or the UAE; or

     (b) have a habitual residence in Kazakhstan or the UAE.

     2. Within 40 days after the establishment of the Arbitration Panel, each Party to the dispute appoints one arbitrator. The appointed arbitrators shall appoint a third arbitrator by common agreement within 60 days of the appointment of the second one. The parties to the dispute, no later than twenty (20) days after the appointment of the third arbitrator, approve or disapprove the appointment of this arbitrator, who, if approved, acts as Chairman of the Arbitration Panel.

     3. If one of the Parties to the dispute does not appoint an arbitrator within the time limit specified in paragraph 2, the other Party may request the Director General of the WTO to appoint an arbitrator who has not yet been appointed, within 20 days of such request.

4. If a third arbitrator has not been appointed as provided for in paragraph 2, or one of the disputing Parties does not approve the appointment of a third arbitrator, the Director General of the WTO, upon request from either Party to the dispute, shall appoint a third arbitrator within a subsequent period of thirty (30) days, who shall act as Chairman of the Arbitration Panel. In the event that the Director General of the WTO is a citizen of Kazakhstan or the UAE, or is unable to perform this function of appointment, the Deputy Director General of the WTO or the next senior official who is not a citizen of Kazakhstan or the UAE and is able to perform this function of appointment should be asked to make the necessary appointments.

     5. The date of the establishment of the Arbitration Panel is the date when the last of the three selected arbitrators notifies the Parties of their agreement with the appointment.

Article 4.11

Requirements for arbitrators

     1. Every arbitrator must:

     (a) have professional experience in the field of law, international trade and other matters covered by this Agreement;

     (b) to be independent of, not to be associated with, or to receive instructions from, any of the Parties to the dispute;

     (c) to act on his own behalf and not to receive instructions from any organization or Government regarding matters related to the dispute; and

     (d) comply with the Code of Ethics set out in Annex 4B (Code of Ethics for Arbitrators).

     2. The Chairman should also have experience in the field of dispute resolution.

     3. Persons who have participated in mediation, conciliation or mediation procedures in accordance with Article 4.8 in relation to the same or practically equivalent issue are not eligible to be appointed Arbitrators on this issue.

Article 4.12

Replacement of arbitrators

     If any of the arbitrators of the original Arbitration Panel cannot participate in the proceedings, recuses himself or must be replaced because this Arbitrator does not comply with the requirements of the Code of Ethics, the arbitrator's successor is appointed in the same manner as provided for the appointment of the original Arbitrator, and the successor has the powers and duties of the original Arbitrator. The work of the Arbitration Panel is suspended for the period of appointment of such a successor.

Article 4.13

Functions of the Arbitration Panel

     Unless otherwise agreed by the Parties to the dispute, the Arbitration Panel:

     (a) should conduct an objective assessment of the matter before it, including an objective assessment of the facts of the case, and the applicability and compliance of the measure under consideration with the provisions covered.;

     (b) should set out in its decisions and reports conclusions on the facts, the applicability of the relevant provisions of the Agreement and the rationale for any conclusions and recommendations, as indicated in its terms of reference;

     (c) shall determine, at the request of the Party to the dispute, the compliance of any enforcement measures or the corresponding suspension of concessions or other obligations with its final report.;

     (d) should hold regular consultations with the Parties to the dispute and provide adequate opportunities to reach a mutually acceptable solution.

Article 4.14

Authority

     1. Unless otherwise agreed by the Parties within 15 days after the date of the establishment of the Arbitration Panel, the powers of the Arbitration Panel shall be as follows::

     "to consider, in the light of the relevant covered provisions of this Agreement cited by the Parties, the issue referred to in the request for the establishment of an Arbitration Panel, to decide on the compliance of the measure under consideration with the relevant covered provisions of this Agreement, as well as recommendations, if any, on ways to resolve the dispute, and to submit a report in accordance with Articles 4.19 and 4.20."

     2. If the Parties agree on powers other than those specified in paragraph 1, they shall notify the Arbitration Panel of the agreed powers no later than 5 days after their agreement.

Article 4.15

Rules of interpretation

     The Arbitration Panel interprets the covered provisions in accordance with the customary rules of public international law.

Article 4.16

Arbitration Group procedures

     1. Unless otherwise agreed by the Parties, the Arbitration Panel will follow the model rules of arbitration set out in Appendix 4A (Rules of Arbitration).

     2. The arbitration Panel should not enter into ex parte relations on issues under its consideration.

     3. The discussions in the Arbitration Panel and the documents submitted to it are confidential.

     4. As a general rule, the Party to the dispute who claims that the other Party's measure is incompatible with the provisions of this Agreement bears the burden of proving such inconsistency. The party to the dispute claiming that the measure falls under the exception provided for in this Agreement bears the burden of proving that such an exception is applicable.

     5. The Arbitration Panel should consult with the Parties as necessary and provide adequate opportunities to reach a mutually acceptable solution.

     6. The Arbitration Panel makes decisions, including reports, on the basis of consensus, and if consensus is not possible, then by a majority vote of its arbitrators.

Article 4.17

Suspension and termination of proceedings in the case of the Arbitration Group

     If the claimant Party requests this, the Arbitration Panel suspends its work for a period not exceeding 12 consecutive months. In the event of suspension of the work of the Arbitration Group, the relevant time limits provided for in this Chapter shall be extended for the same period of time for which the work of the Arbitration Group was suspended. The arbitration panel resumes its work until the end of the suspension period at the written request of the Claimant Party. If the work of the Arbitration Group has been suspended for more than 12 consecutive months, the powers of the Arbitration Group will expire and the dispute settlement procedure will be terminated.

Article 4.18

Getting information

     1. On its own initiative, with the consent of the Parties to the dispute, or at the request of one of the Parties to the dispute, the Arbitration Panel may request relevant information from the Parties that it deems necessary and appropriate. The Parties shall promptly and fully respond to any request for information from the Arbitration Panel.

     2. On its own initiative, with the consent of the Parties to the dispute, or at the request of one of the Parties to the dispute, the Arbitration Panel may request from any source any information it deems necessary. The arbitration panel also has the right to seek expert opinion, if it deems it appropriate and if it is agreed by the Parties to the dispute, and subject to any conditions agreed by the Parties, where applicable.

     3. On its own initiative, with the consent of the Parties to the dispute, or at the request of one of the Parties to the dispute, the Arbitration Panel may request information and technical advice from any person or body it deems necessary, subject to the consent of the Parties and on such terms as are agreed by the Parties. The Arbitration Panel provides the Parties with any information obtained in this way for comments.

     4. Any information received by the Arbitration Panel in accordance with this article shall be provided to the Parties, and the Parties may submit their comments on this information.

Article 4.19

Preliminary report

     1. The Arbitration Panel shall submit a preliminary report to the Parties within 90 days from the date of the establishment of the Arbitration Panel. If the Arbitration Panel considers that this deadline cannot be met, the Chairman of the Arbitration Panel shall notify the Parties in writing, indicating the reasons for the delay and the date by which the Arbitration Panel plans to submit its preliminary report. Under no circumstances should the delay exceed 90 days after the deadline.

     2. In cases of urgency, including those involving seasonal services, the Arbitration Panel shall seek to submit a preliminary report to the Parties to the dispute within half of the time limit set out in paragraph 1.

     3. The preliminary report should contain a descriptive part, as well as the conclusions and conclusions of the Arbitration Panel.

     4. Each Party may submit written comments and a written request for revision of specific aspects of the preliminary report to the Arbitration Panel within 15 days from the date of the preliminary report's release. A Party may comment on the other Party's request within 10 days of sending the request.

     5. After reviewing any written comments and requests from each Party on the preliminary report, the Arbitration Panel may amend the preliminary report and conduct any further review it deems necessary.

Article 4.20

Final report

     1. The Arbitration Panel shall submit its final report to the Parties within 140 days from the date of the establishment of the Arbitration Panel. If the Arbitration Panel considers that this deadline cannot be met, the Chairman of the Arbitration Panel shall notify the Parties in writing, indicating the reasons for the delay and the date on which the Arbitration Panel plans to submit its final report. Under no circumstances should the delay exceed 60 days after the deadline.

     2. In cases of urgency, including those involving seasonal services, the Arbitration Panel shall seek to submit a final report to the Parties to the dispute within half of the time limit set out in paragraph 1.

     3. The final report includes a discussion of any written comments and requests made by the Parties on the final report. In its final report, the Arbitration Panel may recommend ways to implement the findings and recommendations, if any.

     4. The final report is not subject to publication unless otherwise agreed by the Parties.

5. In its conclusions and recommendations, the Arbitration Panel may not increase or decrease the rights and obligations provided for in this Agreement.

Article 4.21

Execution of the final report of the Arbitration Panel

     1. In cases where the Arbitration Panel concludes that the Respondent Party has acted in violation of any provision, the Respondent Party shall take any measures necessary to promptly and faithfully implement the conclusions and recommendations contained in the final report, if any.

     2. The respondent Party must immediately enforce the Arbitration Panel's decision. If immediate execution is not possible, the Respondent Party shall, no later than 30 days after the submission of the final report, notify the Claimant Party of the length of a reasonable period of time required to complete the final report, and the Parties shall seek to agree on a reasonable period of time required to complete the final report.

Article 4.22

A reasonable period of time to comply with the requirements

     1. If the Parties have not agreed on the length of a reasonable period of time, the Claimant Party may, no later than 20 days after the date of receipt of the notification made by the Respondent Party in accordance with paragraph 2 of Article 4.21, request in writing the original Arbitration panel to determine the length of a reasonable period of time. The Respondent Party is simultaneously notified of such a request.

     2. The initial Arbitration Panel shall send its decision to the Parties within 45 days of receipt of the relevant request.

     3. The duration of a reasonable period of time for the execution of the final report may be extended by mutual agreement of the Parties.

Article 4.23

Compliance with the requirements

     1. The respondent Party shall send a written notification of the progress of compliance with the final report to the Claimant Party at least 60 days before the expiration of a reasonable period of time for the completion of the final report, unless otherwise agreed by the Parties.

     2. The respondent Party shall, no later than the expiration date of a reasonable period of time, notify the Claimant Party of any measures it has taken to comply with the final report.

     3. If the Parties disagree on whether measures are in place to comply with the final report or whether they are consistent with the provisions covered, the claimant Party may request in writing that the original Arbitration panel decide on the matter before compensation is sought or suspension of assignments is applied in accordance with subparagraph 1 (c) Article 4.24. The Respondent Party shall be notified of such request at the same time.

     4. The request sets out the factual and legal basis of the complaint, including the identification of the specific measures in dispute and the reasons why the measures taken by the Respondent Party are inconsistent with the final report.

     5. The Arbitration Panel shall send its decision to the Parties within 60 days from the date of sending the request.

Article 4.24

Compensation and suspension of concessions or other obligations

     1. The Respondent Party, at the request of the Claimant Party, enters into consultations with a view to reaching a mutually satisfactory agreement or any necessary compensation, if:

     (a) The respondent Party does not notify of any measures taken to comply with the final report before a reasonable period of time has elapsed.;

     (b) The respondent Party notifies the Claimant Party in writing that it is not possible to comply with the final report within a reasonable period of time; or

     (c) The Arbitration Panel finds that the measures taken to comply are missing, or that the measure taken to comply with the final report notified by the respondent party is incompatible with the provisions covered.

     2. If the Parties fail to reach a mutually satisfactory agreement or agree on compensation within 20 days after the date of receipt of the request sent in accordance with paragraph 1, the claimant Party may send written notification to the Respondent Party of its intention to suspend the application of concessions or other obligations under this Agreement to that Party. The notification indicates the level of the expected suspension of concessions or other obligations.

     3. The claimant Party may begin suspending the assignments or other obligations referred to in the preceding paragraph 20 days after the date on which it notified the Respondent Party, unless the Respondent Party has submitted a request in accordance with paragraph 7.

     4. Suspension of concessions or other obligations:

     (a) is carried out at a level equivalent to the cancellation or deterioration caused by the Respondent Party's failure to comply with the final report; and

     (b) is limited to the concessions accrued to the Respondent Party in accordance with this Agreement.

     5. When considering which assignments to suspend in accordance with paragraph 2, the claimant Party applies the following principles:

     (a) first of all, the claimant Party should seek to suspend the concessions in the same sector or sectors that were affected by a measure that the Arbitration Panel found to be inconsistent with this Agreement or that led to the cancellation or deterioration of the situation.;

     (b) The claimant Party may suspend assignments in other sectors if it considers that suspending assignments or other obligations in the same sector is impractical or ineffective.

     6. The suspension of concessions or other obligations should be temporary and applied only until the non-compliance of the measure with the relevant covered provisions identified in the final report is eliminated, or until the Parties agree on a mutually acceptable agreement or compensation.

     7. If the respondent Party considers that the suspension of assignments does not comply with paragraphs 4 and 5, that Party may request the original Arbitration panel in writing to consider the matter no later than 15 days after the date of receipt of the notification referred to in paragraph 2. This request is simultaneously brought to the attention of the Plaintiff Party. The Initial Arbitration Panel shall notify the Parties of its decision on this matter no later than 30 days after receiving the request from the Respondent Party. The effect of assignments or other obligations is not suspended until the original Arbitration Panel makes its decision. The suspension of concessions or other obligations must be consistent with this decision.

Article 4.25

Review of any measures taken to comply with the requirements after the suspension of concessions or other obligations

     1. After the Respondent Party notifies the Plaintiff Party of the measures taken to comply with the final report:

     (a) in a situation where the right to suspend assignments or other obligations has been exercised by the Claimant Party in accordance with Article 4.24, the Claimant Party shall terminate the suspension of assignments or other obligations no later than 30 days after the date of receipt of the notification, except as provided in paragraph 2; or

     (b) in a situation where the necessary compensation has been agreed, the respondent Party may terminate the application of such compensation no later than 30 days after the date of receipt of the notification, except in the cases referred to in paragraph 2.

     2. If the Parties do not agree on whether the measure they have notified in accordance with paragraph 1 is in accordance with the relevant provisions covered, the claimant Party shall, within 30 days from the date of receipt of the notification, request the original Arbitration panel in writing to consider the matter. The Respondent Party is simultaneously notified of this request. The decision of the Arbitration Panel is notified to the Parties no later than 60 days after the date of the request. If the Arbitration Panel determines that the measure notified in accordance with paragraph 1 is consistent with the provisions covered, the suspension of assignments or other obligations or the application of compensation shall cease no later than 15 days after the date of the decision. If the Arbitration Panel determines that the notified measure achieves only partial compliance with the provisions covered, the level of suspension of assignments or other obligations, or compensation, should be adapted in the light of the Arbitration Panel's decision.

Article 4.26

Choosing a dispute resolution location

     1. If a dispute over a specific measure arises in accordance with this Agreement and other international trade agreements to which the Parties to the dispute are parties, including the WTO Agreement, the Parties may agree on a place to resolve the dispute. If the Parties fail to agree on a place to resolve the dispute, the claimant Party may choose a place to resolve the dispute.

     2. If the claimant Party has initiated dispute settlement proceedings in respect of a particular measure, either in accordance with this Chapter or in accordance with any other international trade agreement to which the Parties to such dispute are Parties, including the WTO Agreement, it should not initiate the same dispute elsewhere.

     3. For the purposes of paragraph 2:

     (a) Dispute settlement proceedings under this Chapter shall be deemed initiated when a Party requests the establishment of an Arbitration Panel in accordance with Article 4.9.;

     (b) Dispute settlement proceedings under the WTO Agreement are considered initiated when a Party requests the establishment of an Arbitration Panel in accordance with Article 6 of the DRC;

     (c) dispute settlement proceedings under any other agreement shall be deemed to have been initiated in accordance with the relevant provisions of such agreement.

Article 4.27

Expenses

1. Unless otherwise agreed by the Parties, the costs of the Arbitration Panel and other costs related to the conduct of the proceedings shall be borne by both Parties in equal shares.

     2. Each Party shall bear its own costs and legal fees during the proceedings before the Arbitration Panel.

Article 4.28

A mutually acceptable solution

     1. The parties may at any time reach a mutually acceptable solution in respect of any dispute referred to in Article 4.4.

     2. If a mutually acceptable solution is reached during the dispute review procedure by the Arbitration Panel, the Parties shall jointly notify the Chairman of the Arbitration Panel within a reasonable period of time. Upon such notification, the Arbitration Panel's proceedings are terminated.

     3. Each Party shall take the necessary measures to implement a mutually acceptable solution within an agreed period of time.

     4. No later than after the expiration of the agreed time period, the Party implementing the decision shall inform the other Party in writing of any measures it has taken to implement a mutually acceptable solution.

Article 4.29

Deadlines

     1. All the time limits set out in this Chapter are calculated in calendar days from the day following the day of the action to which they relate.

     2. Any time period specified in this Chapter may be adjusted by mutual agreement of the Parties to the dispute.

Article 4.30

Applications

     The Arbitration Panel shall be guided by Annex 4A (Rules of Arbitration), unless, after consultation with the parties to the dispute, the Arbitration Panel decides otherwise at the request of one of the Parties to the dispute. Appendix 4A (Rules of Arbitration) and Appendix 4B (Code of Ethics for Arbitrators) may be adjusted by mutual agreement of the Parties to the dispute.

APPENDIX 4A

RULES OF ARBITRATION PROCEEDINGS

     Deadlines

     1. After consultations with the Parties, the Arbitration Panel, if possible, within 7 days after the appointment of the Chairman, sets the time limits for the Arbitration Panel. The approximate dates fixed in this Appendix should be used as a guide.

     2. As a general rule, the duration of the Arbitration Panel's proceedings should not exceed 140 days from the date of the Arbitration Panel's establishment until the date of the final report, unless otherwise agreed by the Parties.

     3. If the Arbitration Panel finds it necessary to change the time frame, it shall inform the Parties in writing of the proposed change and its reasons.

     Written submissions and other documents

     4. Unless the Arbitration Panel decides otherwise, the claimant Party shall send its first written submission to the Arbitration Panel no later than 35 days after the date of appointment of the third arbitrator. The respondent Party shall send its first written submission to the Arbitration Panel no later than 20 days after the date of sending the first written submission by the Claimant Party. Copies must be provided to each arbitrator of the Arbitration Panel.

     5. Each Party shall also provide a copy of its first written submission to the other Party at the same time as it is submitted to the Arbitration Panel.

     6. Within 10 days after the conclusion of the hearing, each Party may send an additional written submission to the Arbitration Panel and the other Party, answering any question raised during the hearing.

     7. The Parties shall send all information or written submissions, written versions of oral statements and answers to questions posed by the Arbitration Panel to the other Party to the dispute simultaneously with its submission to the Arbitration Panel.

     8. All written documents provided by the Arbitration Panel or one Party to the other Party are also provided in electronic form.

     9. Minor clerical errors in any request, notification, written submission or other document related to the proceedings in the Arbitration Group can be corrected by providing a new document with a clear indication of the changes.

     The work of the Arbitration Group

     The Chairman of the Arbitration Panel shall preside at all its meetings. The Arbitration Panel may delegate to the Chairman the authority to make administrative and procedural decisions.

     10. Discussions in the Arbitration Panel are confidential. Only the arbitrators of the Arbitration Group may participate in the discussions of the Arbitration Group. The reports of the Arbitration Panel are prepared without the presence of the Parties, taking into account the information provided and the statements made.

     11. The opinions expressed in the Arbitration Panel's report by individual arbitrators of the Arbitration Panel are anonymous.

     Meetings

     12. The Parties are given the opportunity to attend the meetings and hearings of the Arbitration Panel.

     13. The schedule established in accordance with Rule 1 should include at least one hearing for the Parties to present their cases to the Arbitration Panel.

     14. The Arbitration Panel may convene additional hearings at the request of one of the disputing Parties.

     15. All arbitrators of the Arbitration Group must be present at the meetings. The meetings of the Arbitration Group are held behind closed doors, attended only by the arbitrators of the Arbitration Group and the Parties. However, in agreement with the Parties, assistants, interpreters, or designated protocol drafters may also be present at the hearing to assist the Arbitration Panel in its work, unless otherwise agreed by the Parties to the dispute.

     16. The meetings are conducted by the Arbitration Panel in such a way that the Plaintiff Party and the Defendant Party are given equal time to present their position. The Arbitration Panel holds meetings in the following order: arguments of the Plaintiff Party; arguments of the Defendant Party; response of the Plaintiff Party; counter-response of the Defendant Party; final statement of the Plaintiff Party; final statement of the Defendant Party. The Chairman may set a time frame for oral arguments to ensure equal time for each Side.

     Questions

     17. The Arbitration Panel may ask questions of either Party at any time during the proceedings. The Parties shall promptly and fully respond to any request from the Arbitration Panel for such information as the Arbitration Panel deems necessary and appropriate.

     18. If the question is asked in writing, each Party shall also provide a copy of its response to such questions to the other Party at the same time as it is submitted to the Arbitration Panel. Each Party is given the opportunity to submit written comments on the other Party's response.

     Confidentiality

     19. The meetings of the Arbitration Panel and the documents submitted to it are confidential. Each Party considers as confidential information submitted to the Arbitration Panel by the other Party, which this Party has designated as confidential.

     20. If a Party declares confidential its written materials submitted to the Arbitration Panel, it shall, at the request of the other Party, provide the Arbitration Panel and the other Party with a non-confidential summary of the information contained in its written materials, which may be disclosed to the public, no later than 10 days after the date of the request. Nothing in these Rules prevents a Party from disclosing statements about its position to the public.

     Working language

     21. The working language of the Arbitration Panel proceedings, including written submissions, oral arguments or presentations, the report of the Arbitration Panel, and all written and oral communications between the Parties and with the Arbitration Panel, is English.

     Location of the event

     22. The venue of the Arbitration Group meetings is determined by agreement between the Parties. In the absence of an agreement, the venues of the hearings alternate between the capitals of the Parties to the dispute, with the first hearing being held in the capital of the Respondent Party.

     Expenses

     23. The Arbitration Panel keeps records and draws up a final report on all total costs incurred in connection with the proceedings, including the costs of paying for the services of its assistants, translators and designated note-takers.

     Tentative work schedule of the Arbitration Group

     The Arbitration Group was established xx/xx/xxx.

     24. Receiving the first written submissions from the Parties:

     (i) The claimant Party: 35 days after the date of appointment of the third arbitrator of the Arbitration Panel;

     (ii) Respondent Party: 20 days after subparagraph (i).

     25. Date of the first meeting with the participation of the parties: 20 days after receiving the first submission of the Respondent Party.

     26. Receipt of additional written submissions from the parties: 10 days after the date of the first hearing.

     27. Release of the initial report to the Parties: within 90 days from the date of the establishment of the Arbitration Panel.

     28. The deadline for the Parties to submit written comments on the initial report is 15 days after the release of the initial report; and

     29. Release of the final report to the Parties: within 140 days from the date of the establishment of the Arbitration Panel.

APPENDIX 4B

CODE OF ETHICS FOR ARBITRATORS

     Definitions

     1. For the purposes of this Application:

     assistant means a person who, in accordance with the terms of appointment of the arbitrator, conducts research or provides support to the arbitrator;

     arbitrator means a member of the Arbitration Panel established in accordance with article 4.9;

     proceedings in the case, unless otherwise specified, means proceedings of the Arbitration Panel in accordance with this Chapter; and

     staff, in relation to the arbitrator of the Arbitration Group, means persons under the direction and control of the arbitrator of the Arbitration Group, with the exception of assistants.

     Responsibility to the process

2. Each arbitrator must avoid inappropriate behavior and the appearance of inappropriate behavior, be independent and impartial, avoid direct and indirect conflicts of interest, and adhere to high standards of conduct in order to preserve the integrity and impartiality of the dispute resolution process. Former arbitrators must comply with the obligations set out in paragraphs 17-20.

     Disclosure obligations

     3. Before confirming his choice as an arbitrator in accordance with this Agreement, the candidate must disclose any interests, relationships or issues that may affect his independence or impartiality, or that may reasonably create the appearance of inappropriate behavior or bias during the proceedings. To do this, the candidate must make every reasonable effort to learn about any such interests, relationships, and issues.

     4. After selection, the arbitrator must continue to make all reasonable efforts to learn about any interests, relationships, and matters referred to in paragraph 3, and must disclose them by reporting them in writing for consideration by the Parties. The obligation to disclose information is an ongoing obligation that requires the arbitrator to disclose any such interests, relationships, and issues that may arise at any stage of the proceedings.

     Performance of duties by arbitrators of the Arbitration Group

     5. The arbitrator must comply with the provisions of this Chapter and the applicable rules of arbitration.

     6. After the election, the arbitrator must carefully and promptly perform his duties throughout the proceedings, showing fairness and diligence.

     7. An arbitrator should not deprive other arbitrators of the opportunity to participate in all aspects of the proceedings.

     8. The arbitrator should consider only those issues that were raised during the proceedings and that are necessary for making a decision, and should not transfer the obligation to make a decision to any other person.

     9. The arbitrator must take all appropriate measures to ensure that the personnel referred to in paragraph 16 of Annex 4A (Rules of Arbitration) are aware of and comply with paragraphs 2, 3, 4, 19, 20 and 21.

     10. The arbitrator must not enter into ex parte contacts concerning the proceedings.

     11. An arbitrator must not report actual or potential violations of this Appendix to other arbitrators, except in cases where the communication is intended for both Parties or is necessary to determine whether this arbitrator has violated or may violate this Appendix.

     Independence and impartiality of the arbitrators of the Arbitration Group

     12. Arbitrators must be independent and impartial. The arbitrator must act honestly and not create the appearance of inappropriate behavior or bias.

     13. An arbitrator should not be influenced by selfish interests, external pressure, political considerations, public outcry, loyalty to any party, or fear of criticism.

     14. The arbitrator must not directly or indirectly assume any obligations or accept any benefits that may in any way interfere or appear to interfere with the proper performance of the duties of the arbitrator.

     15. An arbitrator should not use his position in the Arbitration Panel to advance any personal or private interests. The arbitrator should avoid actions that may give the impression that other persons are in a special position to influence the arbitrator. The arbitrator must make every effort to prevent or prevent others from presenting themselves in such a position.

     16. The arbitrator must not allow past or existing financial, business, professional, family or social relationships or responsibilities to influence the behavior or legal position of the arbitrator.

     17. The arbitrator should avoid entering into any relationship or acquiring any financial interests that could affect the arbitrator's impartiality or create the appearance of inappropriate behavior or bias.

     Responsibilities in certain situations

     18. The arbitrator or former arbitrator should avoid actions that may give the impression that the arbitrator was biased in the performance of his duties or benefited from the decision or report of the Arbitration Panel.

     Respect for confidentiality

     19. In no case should an arbitrator or a former arbitrator disclose or use any non-public information related to the proceedings or obtained during such proceedings, except for the purposes of the proceedings, and in no case should he disclose or use any such information for personal gain or benefit to others or for negative impact on the interests of others.

     20. The arbitrator must not disclose the report of the Arbitration Panel or any part of it.

     21. In no case should an arbitrator or a former arbitrator disclose the results of the Arbitration Panel's work or the opinion of any arbitrator of the Arbitration Panel.

chapter 5

exceptions

Article 5.1

Common exceptions

     For the purposes of Chapter 2 (Trade in services), Article XIV of the GATS, including its footnotes, is incorporated and forms part of this Agreement, mutatis mutandis.

Article 5.2

Exceptions for security reasons

     Nothing in this Agreement should be interpreted as:

     (a) requiring any Party to provide any information, the disclosure of which is contrary to its essential security interests; or

     (b) preventing any Party from taking any action it deems necessary to protect its most important security interests:

     (i) related to fissionable or thermonuclear materials or the materials from which they are derived;

     (ii) related to the supply of services carried out directly or indirectly for the purpose of supplying a military establishment;

     (iii) adopted during a war or other emergency in international relations; or

     (c) Preventing any Party from taking any action to fulfill its obligations under the Charter of the United Nations in order to preserve international peace and security.

Article 5.3

Taxation

     1. With the exception of provisions according to which the relevant rights and obligations are also granted or imposed by the WTO Agreement, nothing in this Agreement applies to any tax measures.

     2. Nothing in this Agreement affects the rights and obligations of any Party under any tax convention. In the event of any discrepancy between this Agreement and any such tax convention, that tax convention shall prevail to the extent of the discrepancy.

CHAPTER 6

AGREEMENT ADMINISTRATION

Article 6.1

Joint Committee

     1. The Parties hereby establish a Joint Committee.

     2. Joint Committee:

     (a) must consist of representatives from Kazakhstan and the UAE, and

     (b) may establish permanent or ad hoc subcommittees or working groups and delegate any of its powers to them.

     3. The Joint Committee shall hold its meeting within one year from the date of entry into force of this Agreement. Thereafter, it meets every two years, unless otherwise agreed by the Parties, to consider any issues related to this Agreement. Regular sessions of the Joint Committee are held alternately in the territories of the States of the Parties.

     4. The Joint Committee should also hold special sessions immediately upon receipt of a request to do so from either Party.

     5. The functions of the Joint Committee are as follows:

     (a) to review and evaluate the results and overall functioning of this Agreement, taking into account the experience gained during its application and its objectives;

     (b) to consider and recommend any amendments to this Agreement that may be proposed by either Party, including modification of assignments, under this Agreement in accordance with Article 2.16 (Revision);

     (c) seek to resolve through negotiations issues between the Parties arising in connection with the interpretation or application of this Agreement;

     (d) to supervise and coordinate the work of all the subcommittees and working groups established in accordance with this Agreement;

     (e) consider any other issues that may affect the operation of this Agreement;

     (f) at the request of either Party, propose a mutually agreed interpretation of the provisions of this Agreement.;

     (g) to make decisions or make recommendations provided for in this Agreement; and

     (h) perform other functions that may be agreed upon by the Parties.

     6. The Joint Committee should establish the rules of work.

     7. Meetings of the Joint Committee and any permanent or ad hoc subcommittees or working groups may be held in person or in any other way determined by the Parties.

Article 6.2

Communications

     1. Each Party shall designate a contact point to receive and facilitate official communications between the Parties on any matter related to this Agreement.

     2. All official communications in connection with this Agreement are in English.

CHAPTER 7

FINAL PROVISIONS

Article 7.1

Appendices and footnotes

     Appendices and footnotes to this Agreement are integral parts of this Agreement.

Article 7.2

Amendments

     1. The Parties may agree in writing on amendments and additions to this Agreement.

     2. All amendments and additions are integral parts of this Agreement and enter into force in the same manner as provided for in Article 7.5.

Article 7.3

Joint interpretation

The Parties may jointly adopt in writing interpretations of the provisions of this Agreement, which are binding on the Parties and all bodies and groups resolving disputes under this Agreement.

Article 7.4

Validity period and termination

     1. This Agreement is valid for an indefinite period.

     2. Each of the Parties has the right to terminate this Agreement by sending a written notification of its intention to the other Party through diplomatic channels. In this case, this Agreement shall terminate after 6 (six) months from the date of receipt of such notification.

Article 7.5

Entry into force

     1. This Agreement is subject to ratification and enters into force on the first day of the second month following the date of receipt by one of the Parties of the last written notification of ratification.

     2. The Parties shall notify each other of the ratification of this Agreement through diplomatic channels within 60 (sixty) days from the date of its ratification.

Article 7.6

Authentic texts

     Committed in the city _______________ 20 __ in two copies, each in Kazakh, Arabic and English. Moreover, all texts are equally authentic. In case of any disagreement in the interpretation of this Agreement, the English text shall prevail.

     IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.

     FOR THE REPUBLIC OF KAZAKHSTAN FOR THE UNITED ARAB EMIRATES

APPENDIX 7A

MUTUAL UNDERSTANDING ON THE ENERGY RESOURCES SECTOR

     In connection with this Agreement, the Parties have reached the following agreement:

     (a) The UAE is an independent, sovereign, federal State with seven sovereign Member Emirates (Emirates), and in accordance with their Constitution, each Member Emirate retains full sovereignty, sovereign rights and exclusive jurisdiction in its territory with respect to its natural resources and wealth, of which the energy resources sector is the subject of this Application. For the purposes of this Annex, "Energy Resources Sector" means all hydrocarbons such as oil, gas and condensate produced in the UAE and other Member Emirates, their derivatives and primary by-products originating in the UAE and other Member Emirates (energy resources), with respect to ownership, management, exploration, development and production, exploitation (including reservoir management), transportation, storage, processing and processing, and distribution, up to and including retail.

     (b) Subject to the foregoing, this Agreement does not grant any rights or obligations to Kazakhstan and does not create any obligations for the UAE or any of its member emirates with respect to the energy resources sector. Accordingly, the energy resources sector is excluded from all aspects and provisions of this Agreement, including Chapter 4 (Dispute Resolution). All matters related to the Energy Resources Sector of any of the Member Emirates are under the exclusive jurisdiction of the Member Emirates, and all rulings and decisions of each Member Emirate issued by the competent authorities of such Member Emirate in relation to the energy resources sector (Competent Authorities) that are subject to its jurisdiction are final, binding and they are not subject to review or challenge.

     (c) After the entry into force of this Agreement and in the event that the UAE, in agreement with the competent authorities of the member Emirates, grants to third countries any rights excluded by this Annex in relation to the energy resources sector in accordance with the free trade agreement, such rights will be granted to Kazakhstan.

     (d) Notwithstanding the above, in the event of disagreement in the interpretation or application of this Annex, Kazakhstan and the UAE undertake to consult confidentially at the request of either Party in accordance with Article 4.7 (Consultations). The parties will make every attempt to reach a mutually beneficial solution through consultations within 60 days of the request.

     (f) In the event that Kazakhstan and the UAE fail to reach a mutually agreed solution within 60 days of the consultations, or if the UAE fails to implement the mutually agreed solution within the agreed time limit, Kazakhstan's only remedy will be to suspend concessions under this Agreement in proportion to the trade consequences that this measure causes or threatens to cause. In addition, Kazakhstan should cancel its compensation measure to the extent that the UAE measure in question ceases to apply. The above procedure also applies in the event of any dispute as to whether Kazakhstan's compensatory measure in accordance with this Annex is proportionate, with the UAE also ultimately having the right to appropriately suspend the granting of concessions.

     (f) Kazakhstan and the UAE agree that this Annex is an integral part of this Agreement and that in the unlikely event of any inconsistency between this Annex and any provisions of this Agreement, this Annex will prevail to the extent of such inconsistency.

President    

Republic of Kazakhstan     

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