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General Agreement on Development Co-operation between the Government of Canada and the Government of the Republic of Nicaragua [1990] CATSer 37 (18 December 1990)

E101090 - CTS 1990 No. 47

GENERAL AGREEMENT ON DEVELOPMENT CO-OPERATION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF NICARAGUA

The Government of Canada and the Government of the Republic of Nicaragua,

Wishing to strengthen the existing cordial relations between the two countries and their peoples, and

Desiring to foster development co-operation between the two countries in conformity with the objectives of the Government of the Republic of Nicaragua for the economic and social development of Nicaragua,

Have agreed as follows:

ARTICLE I

The Government of Canada and the Government of the Republic of Nicaragua shall under this Agreement promote a programme of development co-operation, between their two countries, consisting of the following components:

(a) the sending of missions to Nicaragua, from the planning to the evaluation stage to study and analyze potential development projects;

(b) the development and carrying out of studies and projects designed to contribute to the attainment of the objectives of this Agreement;

(c) the provision of Canadian technical assistance through the assignment of experts, advisers and other specialists to Nicaragua and, the provision of training programs to Nicaraguan nationals;

(d) the provision of equipment, materials, goods and services required for the successful execution of development projects in Nicaragua;

(e) the development and carrying out of studies and projects by Canadian non-governmental institutions or organizations;

(f) the encouragement and promotion of cooperation and mutually beneficial relations between firms, institutions and persons of the two countries; and

(g) any other form of assistance which may be mutually agreed upon.

ARTICLE II

1. In the attainment of the objectives of this Agreement, the Government of Canada and the Government of the Republic of Nicaragua acting through their competent agencies, may conclude subsidiary agreements in respect of one or several components of the programme described in Article I.

2. Unless stated otherwise, subsidiary agreements referred to in paragraph 1 of Article II shall be considered as administrative agreements.

3. Subsidiary agreements shall make specific reference to this Agreement and the terms of this Agreement shall, unless stated otherwise, apply to such subsidiary agreements.

ARTICLE III

Unless otherwise indicated, the Government of Canada shall assume the responsibilities described in Annex "A" and the Government of the Republic of Nicaragua shall assume the responsibilities described in Annex "B" in respect of any specific project established under a subsidiary agreement. Annexes "A" and "B" shall be integral parts of this Agreement.

ARTICLE IV

The Government of the Republic of Nicaragua shall ensure that development aid funds provided under any subsidiary agreement are not used to pay any taxes, fees, customs duties or any other levies and charges imposed directly or indirectly by the Government of the Republic of Nicaragua, on any goods, materials, equipment, vehicles and services purchased or acquired in Nicaragua or imported into Nicaragua for, or related to, the execution of any project being carried out in Nicaragua pursuant to a subsidiary agreement or by a Canadian non-governmental institution or organization as defined in Article XV.

ARTICLE V

For the purposes of this Agreement:

(a) "Canadian firm" means Canadian or other non-Nicaraguan firms, organizations, institutions or non-governmental organizations or institutions engaged in any project established under a subsidiary agreement;

(b) "Canadian personnel" means Canadians or non-Nicaraguan or other non-permanent residents of Nicaragua, who are working in Nicaragua on any project established under a subsidiary agreement; and

(c) "dependant" means

i) the spouse of a member of the Canadian personnel, including a person of the opposite sex, with whom the member of the Canadian personnel has lived and publicly represented as his or her spouse for a period of not less than one year before the commencement of his or her period of service in Nicaragua;

ii) a child of the member of the Canadian personnel or his or her spouse who is:

(a) under twenty-one years of age and dependent on the member of the Canadian personnel or his or her spouse for support, or

(b) twenty-one years of age or older and dependent on the member of the Canadian personnel or his or her spouse for support by reason of a mental or physical incapacity.

ARTICLE VI

The Government of the Republic of Nicaragua shall indemnify and save harmless the Government of Canada, Canadian firms and Canadian personnel from civil liability incurred in Nicaragua and under Nicaraguan law for acts or omissions occurring in the course of the performance of their duties in the execution of any specific project established under any subsidiary agreement except for acts arising from gross negligence or wilful misconduct of Canadian firms or Canadian personnel.

ARTICLE VII

As a prior condition to the obligation set forth in Article VI, the Government of the Republic of Nicaragua shall be promptly notified of any claim and kept abreast of any action arising thereunder. Moreover, the Government of the Republic of Nicaragua shall be subrogated in all the rights remedies, securities, set off, indemnification coverage from insurance and the likes that the Government of Canada, Canadian firms and Canadian personnel has with reference to the claim to the extent that the law so provides.

ARTICLE VIII

The Government of the Republic of Nicaragua shall exempt Canadian firms and Canadian personnel and their dependants from taxes imposed on income, provided such income arises from sources outside of Nicaragua or from Canadian aid funds as provided for in any subsidiary agreement. In addition, the Government of the Republic of Nicaragua shall exempt Canadian firms and Canadian personnel, including their dependants, from any obligations to present written declarations in relation to these exemptions.

ARTICLE IX

The Government of the Republic of Nicaragua shall exempt Canadian firms and Canadian personnel from customs and excise duties, sales taxes, charges, levies and fees, on all goods, materials, equipment, vehicles and services and on any other goods or services acquired in or imported into Nicaragua for, or related to, the execution of projects established under any subsidiary agreement.

For projects where the Government of the Republic of Nicaragua and the Government of Canada agree that a given ministry or agency of the Government of the Republic of Nicaragua or a third party shall be responsible for the payment of such duties, taxes, charges and fees, the subsidiary agreement in respect of that specific project shall provide for it specifically.

ARTICLE X

The Government of the Republic of Nicaragua shall exempt Canadian personnel from the payment of customs duties, excise duties and sales taxes in respect of bona fide personal effects and essential basic household equipment brought into Nicaragua for their own use or the use of their dependants. Canadian personnel may purchase duty free such locally manufactured\assembled items provided that such purchases shall be made from the manufacturers and delivery shall be made from bonded warehouses. In the event of theft, fire or other destruction, the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

ARTICLE XI

The Government of the Republic of Nicaragua shall exempt Canadian personnel from the payment of customs duties, excise duties and sales taxes in respect of one motor vehicle imported into Nicaragua or purchased locally for their personal use provided that:

(a) such imported motor vehicle has been purchased by the Canadian personnel in their country of origin or the country of their last posting, or such motor vehicle is purchased locally within the period of six (6) months from the date of their arrival in Nicaragua; and

(b) if the motor vehicle is sold or otherwise disposed of it shall be subject to the normal duties and other charges at the rate in force on the date the exemption was given and on the value at the time of disposal.

Concerning the local purchase of a used motor vehicle, it is understood that the customs duties originally paid on that vehicle will not be reimbursed.

In the event of fire, theft, damage or destruction the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

ARTICLE XII

The Government of the Republic of Nicaragua shall grant Canadian firms and Canadian personnel freedom from currency exchange restrictions in respect of the re-exportation of their salaries, fees, remunerations or other revenues transferred from abroad through authorized banking institutions in Nicaragua.

ARTICLE XIII

The Government of the Republic of Nicaragua shall inform Canadian firms and Canadian personnel of local laws and regulations which may concern them in the performance of their duties.

ARTICLE XIV

The Government of the Republic of Nicaragua shall facilitate the repatriation of Canadian personnel and their dependants in cases where, in the opinion of the Government of Canada, the lives or safety of the Canadian personnel and/or their dependants are endangered.

ARTICLE XV

The Government of the Republic of Nicaragua, recognizing the value and importance of Canadian non-governmental organizations and institutions in developmental activities in Nicaragua, agree to enter into agreements with those non-governmental organizations and institutions to provide them, their Canadian personnel and dependants, with exemptions and privileges to facilitate the execution of their activities in Nicaragua, including:

a) the payment of taxes or any other fees on income from sources outside of Nicaragua;

b) the importation of office equipment, stationery and related office material, including a vehicle for their office in Nicaragua;

c) the importation of personal effects, basic household equipment and one vehicle per Canadian personnel for their personal use.

The Government of the Republic of Nicaragua recognizes the right of Canadian non-governmental organizations and institutions to submit requests for the consideration by the responsible Nicaraguan authority for the granting of exemptions on the importation of goods, equipment and vehicles that can be justified as essential for the execution of their developmental projects and programs in Nicaragua.

A Canadian non-governmental institution or organization means a Canadian non-governmental institution or organization whose projects or programs in Nicaragua are funded in whole or in part by the Government of Canada pursuant to a contribution agreement between the Canadian non-government institution or organization and the Government of Canada.

Canadian personnel of the Canadian non-governmental institution or organization means Canadians or non-Nicaraguan or other non-permanent residents of Nicaragua working in that country on any development assistance project or any other development initiatives funded pursuant to a contribution agreement.

ARTICLE XVI

The Government of Canada and the Government of the Republic of Nicaragua will endeavour to consult each other in respect of any matter that may from time to time arise from or in connection with this Agreement.

ARTICLE XVII

Differences which may arise relating to the interpretation and application of the provisions of this Agreement or of any subsidiary agreement shall be settled by means of negotiations between the Government of Canada and the Government of the Republic of Nicaragua or in any other manner mutually agreed upon.

ARTICLE XVIII

This Agreement shall enter into force on signature and shall remain in force until terminated by either party on six (6) months' notice in writing to the other party. The responsibilities of the Government of Canada and of the Government of the Republic of Nicaragua with regard to projects being carried out by virtue of subsidiary agreements entered into pursuant to Article II of this Agreement and begun prior to the receipt of the termination notice referred to above shall continue until completion of such projects as if this Agreement remained in force in respect of and for the whole duration of such projects.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Agreement, in duplicate, in English, French and Spanish, in Managua, this 18^th day of December 1990, each version being equally authentic.

Henry G. Pardy

FOR AND ON BEHALF OF THE GOVERNMENT OF CANADA

Edwin Kruger

FOR AND ON BEHALF OF THE GOVERNMENT OF THE REPUBLIC OF NICARAGUA

ANNEX "A"

RESPONSIBILITIES OF THE GOVERNMENT OF CANADA

I. Unless otherwise indicated in any subsidiary agreement, the Government of Canada shall finance all the foreign exchange costs of development assistance projects implemented by the Government of the Canada and the Government of the Republic of Nicaragua by virtue of Article II of this Agreement.

II. Contracts for the purchase of goods or commissioning of services financed by the Government of Canada and required for the execution of projects shall be signed by the Government of Canada or one of its agencies. However, it may be provided in any subsidiary agreement that such contracts may be signed by Nicaragua or one of its agencies in accordance with the terms and conditions specified in such subsidiary agreement.

III. The Government of Canada shall provide the Government of the Republic of Nicaragua in a timely manner with the names of the Canadian personnel and their dependants entitled to the right and privileges set forth in this Agreement or in any subsidiary agreement.

ANNEX "B"

RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF NICARAGUA

I. Unless otherwise indicated in any subsidiary agreement, the Government of the Republic of Nicaragua shall provide or pay for:

(1) furnished premises and office services in compliance with the standards of the Government of the Republic of Nicaragua, including adequate facilities and materials, support staff, professional and technical material, telephone, mail and any other services which the Canadian personnel would need in order to carry out their duties;

(2) the recruiting and seconding of counterparts when required for the projects;

(3) any official assistance which may be required for the purpose of facilitating the travel of Canadian personnel in the performance of their duties in Nicaragua;

(4) demurrage charges due to delays in unloading equipment, products materials, supplies and other goods required for the execution of the Project and the personal and household effects of Canadian personnel and their dependants;

(5) any official assistance which may be required for the purpose of expediting the clearance through customs of articles mentioned in paragraph (4);

(6) storage and payment of any charges for articles mentioned in paragraph (4) during the period when they are held at customs and any measures required to protect these articles against natural elements, loss, fire and any other danger;

(7) all permits, licenses and other documents including costs related thereto, if any, for equipment, materials, supplies or goods required for the execution of projects and to enable Canadian firms and Canadian personnel to carry out their functions in Nicaragua;

(8) subject to any laws of Nicaragua, all necessary visas and all import or export permits, as the case may be, for the Canadian personnel and their dependants and for the personal effects of such Canadian personnel and their dependants;

(9) the prompt inland transportation of all equipment, products, materials, supplies and other imported goods required for the execution of projects, from the port of entry into Nicaragua to project sites, including where necessary, the obtaining of priority by Nicaraguan forwarding and transportation agents;

(10) permission from the relevant Nicaraguan Ministry or Ministries in accordance with the relevant laws and regulation to use all means of communication such as high frequency radio transmitters and receivers approved for use in Nicaragua and telephone and telegraph networks, depending on the needs of a specific project;

(11) reports, records, maps, statistics and other information related to projects and likely to assist Canadian personnel in carrying out their duties, provided that they are not classified and have no relation to national security;

(12) the issuance of a Nicaraguan driver's licence to Canadian personnel and their dependants without the requirement to undergo the normal testing procedure, provided a valid Canadian driver's licence is produced and;

(13) other measures within the Government of Nicaragua's jurisdiction which may facilitate the execution of projects.

II. The Government of the Republic of Nicaragua shall give access to Canadian personnel and their dependants to medical care, hospitalization and dental attention in Nicaragua in accordance with those standards granted to officials of equivalent rank of the Government of the Republic of Nicaragua.

III. The Government of the Republic of Nicaragua acknowledges that each Canadian personnel shall be entitled to a period of annual leave of up to thirty (30) days a year.

IV. The Government of the Republic of Nicaragua shall consider the employment of Nicaraguan fellowship holders who are financed through the Canadian development assistance program for at least a period equivalent to the period imposed on any Nicaraguan holder of a fellowship by the Government of the Republic of Nicaragua.