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General Agreement on Development Co-operation between the Government of Canada and the Government of the Oriental Republic of Uruguay [1991] CATSer 16 (5 June 1991)

E101092 - CTS 1991 No. 58

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

The Government of CANADA and the Government of the ORIENTAL REPUBLIC of URUGUAY (hereinafter referred to as the Government of Uruguay),

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

Desiring to establish arrangements for a programme of development co-operation between the two countries in conformity with the objectives of economic and social development of the Government of Uruguay,

Have agreed as follows:

ARTICLE I

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

a) the sending of appraisal and evaluation missions to Uruguay to study and analyse development projects;

b) the granting of fellowships to Uruguayan nationals for studies and professional training in Canada, Uruguay or a third country;

c) the assignment of Canadian co-operants, advisers and other experts to Uruguay;

d) the provision of equipment, motor vehicles materials, and other goods or services needed to carry out development projects in Uruguay;

e) the development and execution of studies and projects designed to contribute to the attainment of the objectives of this agreement;

f) the encouragement and promotion of relations between firms, institutions and citizens of the two countries; and

g) any other form of co-operation which may be mutually agreed upon.

ARTICLE II

1. In support of the objectives of this agreement, the Government of Canada and the Government of Uruguay may conclude subsidiary arrangements in respect of specific projects involving one or several components of the programme described in Article I.

2. Unless stated otherwise, subsidiary arrangements concerning contributions of the Government of Canada shall be considered as administrative arrangements.

3. The Government of Canada may conclude with an international organization, or through an international organization when it administers funds provided by Canada, subsidiary arrangements for projects funded jointly by the Government of Canada and an international organization, provided that the Government of Canada gives preliminary consent and the Government of Uruguay is consulted in advance.

4. This agreement also applies to projects carried out in Uruguay by a Canadian non-governmental organization, as defined in Article XIII.

5. Subsidiary arrangements shall make specific reference to this agreement and the terms of this agreement shall, unless stated otherwise, apply to such subsidiary arrangements.

ARTICLE III

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

ARTICLE IV

For the purposes of this agreement:

a) "Canadian firm" means Canadian or other non-Uruguayan firms or institutions engaged in any project established under a subsidiary arrangement;

b) "Canadian personnel" means Canadian or non-Uruguayan or other non-permanent residents of Uruguay who are working in Uruguay on any project established under a subsidiary arrangement; and

c) "dependant" means

i) the spouse of a member of the Canadian personnel, including a person of the opposite sex identified by a member of the Canadian personnel as a person whom he/she has lived with and publicly represented as his/her spouse for a period of not less than one year before the commencement of the posting to Uruguay; or

ii) a child of the member of the Canadian personnel or of his/her spouse who is under eighteen years of age and/or recognized by the Government of Canada as being dependent on the member of the Canadian personnel or his/her spouse for support.

ARTICLE V

The Government of Uruguay shall indentify and save harmless the Government of Canada, Canadian firms and members of the Canadian personnel from civil liability for acts or omissions occurring in the course of the performance of their duties in the execution of any specific project established under subsidiary arrangements, except for acts arising from gross negligence or willful misconduct on the part of Canadian firms or Canadian personnel.

ARTICLE VI

The Government of Uruguay shall exempt Canadian firms and Canadian personnel from Uruguayan income tax on their official emoluments in respect of their period of assignment in Uruguay.

In addition, the Government of Uruguay shall exempt Canadian firms and Canadian personnel from any obligation to submit written declarations in relation to these exemptions.

ARTICLE VII

The Government of Uruguay shall exempt all equipment, products, materials, motor vehicles and any other goods imported into Uruguay for the execution of projects established under subsidiary arrangements from taxes, consular fees, customs and excise duties, sales tax, charges, levies or any other fees.

The Government of Uruguay shall exempt the aforementioned equipment, products, materials and other goods from any requirements for import licences or other certificates.

ARTICLE VIII

The Government of Uruguay shall exempt members of the Canadian personnel from the payment of customs duty excise duty and sales tax in respect of bona fide personal effects and essential basic household equipment imported into Uruguay for their own use or the use of their dependants, provided that such personal effects and equipment are imported into Uruguay within a period of six (6) months from the date of arrival of the members of the Canadian personnel and their dependants in Uruguay.

Canadian personnel shall enjoy diplomatic duty-free privileges in respect of all items available in bonded warehouses, provided that these items are purchased directly at the warehouse or delivered from a bonded warehouse and are purchased within a period of six (6) months from the date of arrival of the Canadian personnel in Uruguay.

Members of the Canadian personnel may purchase locally under diplomatic franchise heating fuel and motor-vehicle fuel.

In the event of fire or theft, this privilege may be re-exercised at any time during the assignment of the Canadian personnel.

The exemptions in this article are given subject to the following conditions:

a) each member of the Canadian personnel is confined to only one unit or set or a reasonable number of any bona fide personal effects and household equipment to be imported;

b) the personal effects and household equipment may not be sold or otherwise disposed of within a period of three (3) months from the date of importation;

c) the personal effects and household equipment may be sold or disposed of within a period of three (3) months from the date of importation if the member of the Canadian personnel is obliged to return to Canada owing to urgent reasons beyond his/her control or in a case of force majeure;

d) the exemptions mentioned above do not apply to alcoholic beverages or to tobacco related products;

e) the personal effects and household equipment are permitted to be re-exported or disposed of to persons enjoying similar exemptions; and

f) the aforesaid exemptions are given only once irrespective of whether the Canadian personnel's assignment in Uruguay is extended beyond the original period of assignment.

The exemptions mentioned above shall also apply to Canadian personnel and firms with respect to purchases made for the execution of a project established under a subsidiary arrangement made pursuant to Article II of this agreement.

ARTICLE IX

The Government of Uruguay shall exempt members of the Canadian personnel from the payment of customs duty, excise duty and sales tax in respect of one (1) motor vehicle imported into Uruguay or one (1) motor vehicle assembled and purchased locally under diplomatic franchise, provided that:

a) the motor vehicle is imported by the member of the Canadian personnel for personal use from his/her country of origin or the country of his/her last posting. In either case (the importation of a vehicle or the purchase of a locally assembled vehicle), the privilege must be exercised within the period of six (6) months from the date of arrival of the member of the Canadian personnel in Uruguay;

b) if that motor vehicle is sold or otherwise disposed of, it shall be subject to the normal duties and other charges at the rate in effect on the date of sale applied to the CIF value of the vehicle that was established when the vehicle was brought into Uruguay; and

c) Motor vehicles referred to under this agreement shall be insured in conformity with the administrative provisions applicable in Uruguay.

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 X

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

ARTICLE XI

Upon request, the Government of Uruguay shall inform Canadian firms and Canadian personnel of local laws and regulations which may concern them in the performance of their duties.

ARTICLE XII

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

ARTICLE XIII

The Government of Uruguay shall grant the privileges and exemptions described in Articles V, VI, VII, VIII, IX, X, XI, XII and the paragraphs 8 and 12 of Article I of Annex B of this agreement to Canadian non-governmental organizations and to members of their Canadian personnel carrying out development projects in Uruguay. The aforementioned articles shall also apply to dependants of members of the Canadian personnel when mentioned in these articles.

For the purposes of this agreement, a Canadian non-governmental organization means a Canadian non-governmental organization or a provincial governmental organization whose project is funded in whole or in part by the Government of Canada.

"The members of the Canadian personnel of a Canadian non-governmental organization" means those persons defined in paragraph (b) of Article IV of this agreement.

"Dependants of members of the Canadian personnel of a Canadian non-governmental organization" means those persons defined in paragraph (c) of Article IV of this agreement.

ARTICLE XIV

The Government of Canada and the Government of Uruguay 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 XV

The Government of Uruguay shall grant:

a) all permits, licences and other documents necessary to enable Canadian companies and Canadian personnel to carry out their duties in Uruguay;

b) Export licences, entry visas and exit visas, as the case may be, for members of the Canadian personnel and their dependants and for materials, professional and technical equipment, and the personal effects of said members; and

c) the status of "Funcionario Administrativo o Técnico" to members of the Canadian personnel and members of Canadian non-governmental organizations carrying out projects established under subsidiary arrangements and shall issue identity cards recognizing this status to the aforementioned members.

ARTICLE XVI

Differences which may arise relating to the interpretation and application of the provisions of this Agreement or of any subsidiary arrangement shall be settled through diplomatic channels or in any other manner mutually agreed upon by the two parties to this agreement.

ARTICLE XVII

This agreement shall enter into force on the day the Government of Canada receives notification from the Government of Uruguay stating in writing that the administrative measures required for its entry into force have been carried out and that the publication of the said agreement in the "Diario Oficial" of the Government of Uruguay has taken place.

The Government of Uruguay shall endeavour to notify the Government of Canada of the date of publication of the said agreement within thirty (30) days of publication of the agreement in the "Diario Oficial" of the Government of Uruguay.

This agreement 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 the Government of Uruguay with regard to projects being carried out by virtue of subsidiary arrangements 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. This agreement also applies to all projects being carried out under subsidiary arrangements made pursuant to Article II of this agreement and begun prior to its signature or entry into force.

This agreement shall apply retroactively to projects being carried out and begun prior to its signature or entry into force insofar as Uruguay has not already applied this agreement by virtue of the administrative provisions applicable to the said projects upon the entry into force of this agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective governments, have signed this general agreement.

Concluded and done in two originals at Montevideo, this 10^th day of February 1989, in English, French and Spanish, each version being equally authentic.

Harvie Andre

BY THE GOVERNMENT OF CANADA

Luis Barrios Tassano

BY THE GOVERNMENT OF THE ORIENTAL REPUBLIC OF URUGUAY

ANNEX "A"

RESPONSIBILITIES OF THE GOVERNMENT OF CANADA

I. Unless otherwise indicated in subsidiary arrangements, the Government of Canada shall finance the following expenditures based on the rates authorized in its regulations:

A) Expenditures related to Uruguayan holders of Canadian fellowships:

1) registration and tuition fees, books, supplies or materials required;

2) a living allowance;

3) medical and hospital expenses;

4) economy-class fares for travel by air or any other approved means of transportation, in compliance with the requirements of the fellowship programme.

B) Expenditures related to Canadian personnel:

1) their salaries, fees, allowances and other benefits;

2) their travel expenses and those of their dependants between their normal place of residence and the port of entry and departure in Uruguay;

3) the cost of shipping, between their normal place of residence and the port of entry and departure in Uruguay, their personal and household effects, those of their dependants and the professional and technical materials required by the said personnel for the execution of their duties;

4) the cost of hotels or other appropriate temporary accommodation and meals for personnel and their dependants from the time they arrive in Uruguay until they are settled in permanent accommodation and from the time they leave their permanent accommodation until their final departure; if the assignment is for less than six (6) months, no permanent accommodation is required and the Government of Canada shall finance these expenditures for the full duration of the assignment;

5) the cost of their transportation, hotel or other appropriate temporary accommodation and meals, during travel required by their work outside the normal place of assignment.

C) Expenditures related to certain projects:

1) the cost of engineers, architects and other services required for the execution of projects;

2) the cost of providing equipment, materials, supplies and other goods required and of transportation of same from their point of departure to Uruguay.

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 agreed that the Government of Uruguay will sign these contracts subject to the following conditions or to other conditions set forth in specific subsidiary arrangements. Unless otherwise indicated in specific subsidiary arrangements:

1) assets acquired in Canada shall have Canadian content of at least sixty-six and two-thirds per cent (66 2/3 %);

2) a call shall be made for tenders and the contract shall be awarded to the lowest bidder;

3) the terms of payment and other clauses in contracts shall be previously approved by the Government of Canada;

4) Canadian suppliers shall be paid directly by the Government of Canada.

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

ANNEX B

RESPONSABILITIES OF THE GOVERNMENT OF URUGUAY

I. Unless otherwise indicated in subsidiary arrangements, the Government of Uruguay shall provide or pay for:

1) at the express request of Canada, an installation and housing allowance for the Canadian personnel at

a) the rate normally applicable by Uruguay to its personnel who are or may be assigned to the project; or

b) the maximum rate allowed under the relevant Uruguayan regulations pertaining to the installation costs of personnel assigned to development assistance;

The rates applicable and the methods of payment of the above allowances shall be determined in subsidiary arrangements;

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

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

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

5) any official assistance which may be required for the purpose of expediting the clearance through customs of equipment, products, materials, supplies and other goods required for the execution of projects and the personal and household effects of Canadian personnel and their dependants;

6) the storage of articles mentioned in paragraph (5) above 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, licences 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 Uruguay;

8) subjects to any Uruguayan laws, 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 in Uruguay to project sites, including where necessary, the obtaining of priority by Uruguayan forwarding and transportation agents;

10) ground transportation for the Canadian personnel for all journeys made on official business, excluding travel between home and office;

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

12) 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.

II. The Government of Uruguay shall, insofar as possible, provide the Canadian personnel and their dependants with free medical and dental attention at Government hospitals. No reimbursement will be made by the Government of Uruguay if the Canadian personnel and their dependants elect to be treated by private practitioners. If admitted at a Government hospital the Canadian personnel and their dependants will be required to pay ward charges laid down in Uruguayan regulations applicable to the Uruguayan counterparts assigned to work with the Canadian personnel.

III. The Government of Uruguay acknowledges that each member of the Canadian personnel shall be entitled to a period of local leave of 30 calendar days a year. Annual leave shall not be taken during the first six months of the assignment in Uruguay. The head of the relevant Ministry/Department to which the Canadian personnel are assigned or an officer designated by him is the approving authority for such local leave.

IV. The Government of Uruguay shall, insofar as possible, consider the employment of fellowship holders who receive grant-financed studies for at least a period equivalent to the period imposed on any holder of the Government of Uruguay's fellowship.