WT/REG364/3 
 
3 August 2016 
(16-4160)  Page: 1/2 
Committee on Regional Trade Agreements  Original: English 
 
FREE TRADE AGREEMENT BETWEEN CANADA AND HONDURAS 
(GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
The following communication, dated 2 August 2016, is being circulated at the request of the 
delegations of Canada and Honduras.  
 This document reproduces the follow-up questions addressed to the Parties following 
the 81st Session of the CRTA and the responses submitted. 
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Questions from the delegation of the European Union 
 
1.1.  Could the Parties explain why there is no specific chapter on intellectual property 
rights in their Agreement? 
 The Canada-Honduras Free Trade Agreement does not include a chapter on intellectual 
property, given that the Parties so agreed.  
 
1.2.  Could they clarify in which sections intellectual property rights are referred to – 
apart from the investment ch apter mentioned in the Factual Presentation - and explain 
why only in these sections? 
 Apart from the Investment Chapter, the foll owing sections refer to intellectual property: 
 
• Preamble  
• Chapter 15: Competition Policy, Monopolies and State Enterprises; Article 15.1: Definitions 
• Chapter 16: Electronic Commerce; Article 16.5 (b): Cooperation 
• Chapter 17: Government Procurement; Article 17.3.2 (c): Security and General Exceptions 
 
 The inclusion of these intellectual property el ements form part of standard outcomes in 
bilateral free trade agreements, including in Ca nada's agreement with the European Union. 
 1.3.  Could they also provide details on the IPR aspects in these sections? 
 Preamble - The intellectual property aspect relates to public health, and encompasses an 
affirmation of the respective rights of each Party to avail themselves of the flexibilities established 
in the WTO Agreement on Trade-Related Aspect s of Intellectual Property Rights (TRIPS 
Agreement), including those related to the protection of public health and access to medicines.  
 
 Specifically, the preamble stipulates the following:   
Affirming  the right to fully avail themselves of the flexibilities established in the TRIPS 
Agreement, including those related to the prot ection of public health and in particular 
those to promote the access to medicines for all ; 
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   Competition Policy, Monopolies and State Enterprises - Article 15.1 - This chapter 
includes a definition for a monopoly, which indicates a monopoly does not include an entity that has been granted an exclusive intellectual property right solely by reason of such grant.  
 Specifically, Article 15.1 stipulates the following: 
 
For the purposes of this Chapter, […] monopoly  means an entity, including a consortium or 
government agency, that in a relevant market in the territory of a Party is designated as 
the sole provider or purchaser of a good or se rvice, but does not include an entity that has 
been granted an exclusive intellectual property  right solely by reason of such grant; 
 
 Electronic Commerce - Article 16.5(b) – This chapter includes a cooperation provision 
wherein Parties affirm the importance of sharing information and experiences on laws, regulations and programs involving electronic commerce, including those related to intellectual property 
rights, among other issues. This cooperation provision forms part of Canada's standard free trade 
agreement practice on electronic commerce.  
 Specifically, Article 16.5(b) stipulates the following:  
Recognizing the global nature of electronic commerce, the Parties affirm the importance of 
[…] (b) sharing information and experiences on  laws, regulations, and programs involving 
electronic commerce, including those relate d to data privacy, consumer confidence, 
security in electronic communications, authentication, intellectual property rights, and electronic government; 
 Government Procurement - Article 17.3.2(c) – This chapter provides an exception for 
the Parties to adopt or maintain a measure necessary to protect intellectual property.  
 Specifically, Article 17.3 (2) stipulates the following:  
 
1. […]  
 2. Provided that a measure is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination against a Party if the same conditions prevail, or a 
disguised restriction on trade between the Parties, a Party may adopt or maintain a 
measure:  
(a) necessary to protect public morals, order or safety; 
(b) including an environmental measure, necessary to protect human, animal or plant life or health; 
(c) necessary to protect intellectual property; or 
(d) relating to a good or service of a person with a disability, a philanthropic institution or prison labour. 
 
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