The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of GATT 1994 and the Customs Valuation Agreement.

Article 4.16. Tariff Classification

The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System done on 24 June 1986, to goods traded between them.

Chapter 5. Sanitary and Phytosanitary Measures

Article 5.1. Objectives

The objectives of this Chapter are to:
(a) protect human, animal or plant life or health in the territory of the Parties while minimising negative effects on trade between the Parties;
(b) enhance the Parties' implementation of the SPS Agreement, taking into account international standards, guidelines and recommendations developed by the relevant international organisations; and
(c) enhance mutual co-operation between the Parties, including discussing sanitary and phytosanitary matters, and collaboration in the relevant international organisations.

Article 5.2. Scope

This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.

Article 5.3. Rights and Obligations

The Parties affirm their existing rights and obligations under the SPS Agreement.

Article 5.4. Committee on Sanitary and Phytosanitary Matters

1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Matters (hereinafter referred to as "the Committee") which shall include representatives of the competent authorities of the Parties.
2. The Committee shall discuss, monitor and review the implementation of this Chapter, including arrangements for co-operative activities, expert dialogue to identify and address relevant technical and scientific issues, and any other relevant sanitary and phytosanitary matters.
3. The Committee shall, to the extent possible, endeavour to facilitate consultation between the Parties to resolve any differences of interpretation of the provisions of this Chapter.
4. The Committee shall meet within one year of the entry into force of this Agreement and subsequently at times mutually agreed by the Parties. The Committee may meet in person, via teleconference, via video conference, or through any other means, as agreed by the Parties. The Committee may address issues through correspondence, including via electronic communication. The Committee shall keep a written record of its decisions.
5. For the proper operation of the Committee and the exchange of relevant information between the Parties, the Parties shall designate their contact points as follows:
(a) for Korea, the Ministry of Agriculture, Food and Rural Affairs or its successor; and
(b) for New Zealand, the Ministry for Primary Industries or its successor.

Article 5.5. Sanitary and Phytosanitary Contact Points

1. The contact points designated in accordance with Article 5.4.5 shall function as a channel for communication on sanitary and phytosanitary matters affecting trade between the Parties.
2. The contact points shall exchange information regarding any significant, sustained or recurring pattern of non-compliance with a Party's sanitary and phytosanitary measures and any appropriate remedial action to be undertaken by the other Party.
3. At the same time as notification is provided to the WTO in accordance with paragraph 6(a) of Annex B of the SPS Agreement, a contact point shall notify provisional protection measures taken when a situation arises or threatens to arise which will have a serious and urgent impact on human, animal or plant life or health in that Party.
4. On the request of a Party, a contact point shall endeavour to provide an explanation of a sanitary and phytosanitary measure which may be considered by the other Party to have a significant impact on trade between the Parties.
5. The contact points shall exchange information on any significant food safety issues, or changes in animal or plant life or health status, or any significant structural changes in competent authorities, or legal changes in the sanitary and phytosanitary system of each Party.

Article 5.6. Dispute Settlement

Neither Party shall have recourse to dispute settlement under this Agreement for any matter arising under this Chapter.

Chapter 6. Technical Barriers to Trade

Article 6.1. Objectives

The objectives of this Chapter are to:
(a) increase and facilitate trade through enhancing the Parties' implementation of the TBT Agreement and building on the work of APEC on standards and conformance;
(b) ensure that technical regulations, standards and conformity assessment procedures do not create unnecessary obstacles to trade between the Parties;
(c) reduce, where possible, costs associated with trade between the Parties;
(d) promote regulatory co-operation to manage risks to health, safety and the environment; and
(e) enhance mutual understanding and co-operation between the Parties.

Article 6.2. Definitions

1. For the purposes of this Chapter: designation means the authorisation of a conformity assessment body to perform conformity assessment procedures, by a body with the authority to designate, monitor, suspend or withdraw designation, or remove suspension of conformity assessment bodies within the territories of the Parties.
2. The definitions set out in Annex 1 of the TBT Agreement are incorporated into and made part of this Chapter, mutatis mutandis.

Article 6.3. Scope and Coverage

1. This Chapter applies to the preparation, adoption, and application of all standards, technical regulations, and conformity assessment procedures that may, directly or indirectly, affect trade in goods between the Parties.
2. Notwithstanding paragraph 1, this Chapter does not apply to:
(a) technical specifications prepared by a governmental body for its production or consumption requirements which are covered by Chapter 13 (Government Procurement), to the extent they apply; or
(b) sanitary or phytosanitary measures which are covered by Chapter 5 (Sanitary and Phytosanitary Measures).

Article 6.4. Rights and Obligations

The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement, of which Articles 2 through 9 are incorporated into and made part of this Agreement, mutatis mutandis.

Article 6.5. International Standards

1. Each Party shall use relevant international standards, guides and recommendations, to the extent provided in Articles 2.4 and 5.4 of the TBT Agreement, as a basis for its technical regulations and conformity assessment procedures.
2. In determining whether an international standard, guide, or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall base its determination on the principles set out in "Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement", adopted on 13 November 2000 by the WTO Committee on Technical Barriers to Trade (Annex 2 to PART 1 of G/TBT/1/Rev11), and any subsequent development thereof.
3. The Parties shall encourage co-operation between their respective organisations in areas of mutual interest, in the context of their participation in international standardising bodies, to ensure that international standards developed within such organisations are trade facilitating and do not create unnecessary obstacles to international trade.

Article 6.6. Equivalence of Technical Regulations

1. Consistent with the TBT Agreement, each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided that it is satisfied that these regulations adequately fulfil the objectives of its own regulations.
2. A Party shall, on the request of the other Party, explain the reasons why it has not accepted a technical regulation of the other Party as equivalent.
3. Each Party shall give positive consideration to a request by the other Party to negotiate arrangements for achieving the equivalence of technical regulations referred to in paragraph 1.
4. A Party shall, on the request of the other Party, explain the reasons why it has not accepted a request by the other Party to negotiate such arrangements.
5. The Parties shall strengthen communications and co-ordination with each other, where appropriate, in the context of discussions on the equivalence of technical regulations and related issues in international fora, such as the WTO Committee on Technical Barriers to Trade.

Article 6.7. Conformity Assessment Procedures

1. Each Party shall ensure that, where it requires a positive assurance of conformity, the required procedures are not more strict than is necessary, and grant access for suppliers from the other Party under conditions no less favourable than those accorded to suppliers of like products of national origin or originating in any other country, as provided in Article 5.1 of the TBT Agreement.
2. The Parties recognise that a broad range of mechanisms exists to facilitate the acceptance in a Party's territory of the results of conformity assessment procedures conducted in the other Party's territory. Such mechanisms include:
(a) facilitating recognition of co-operative arrangements between accreditation agencies from each other's territory;
(b) implementing mutual recognition of the results of conformity assessment procedures performed by bodies located in each other's territory with respect to specific technical regulations;
(c) recognising existing regional, international and multilateral recognition agreements and arrangements between or among accreditation bodies or conformity assessment bodies;
(d) recognising accreditation procedures for qualifying conformity assessment bodies;
(e) designating conformity assessment bodies or recognising the other Party's designation of conformity assessment bodies;
(f) unilaterally recognising the results of conformity assessment procedures performed in the other Party's territory; and
(g) accepting a supplier's declaration of conformity.
3. The Parties shall intensify their exchange of information on acceptance mechanisms with a view to facilitating the acceptance of conformity assessment results.
4. A Party shall, on the request of the other Party, explain the reasons why it has not accepted the results of any conformity assessment procedure performed in the territory of the other Party.
5. The Parties may consult on such matters as the technical competence of conformity assessment bodies designated or recognised by a Party, as appropriate, to enhance confidence in the continued reliability of each other's conformity assessment results.
6. Each Party shall give positive consideration to a request by the other Party to negotiate arrangements to facilitate acceptance of conformity assessment procedures, as referred to in paragraph 2.
7. Where a Party declines a request under paragraph 6, it shall, upon request, explain its reasons.

Article 6.8. Joint Co-operation

1. The Parties shall strengthen their co-operation in the field of standards, technical regulations, and conformity assessment procedures with a view to:
(a) increasing the mutual understanding of their respective systems;
(b) enhancing co-operation between the Parties' regulatory agencies in achieving health, safety and environmental objectives; and
(c) facilitating access to their respective markets.
2. Recognising the important relationship between good regulatory practices and trade facilitation, the Parties shall co-operate on regulatory issues, which may include:
(a) promotion of good regulatory practice based on risk management principles;
(b) exchange of information with a view to improving the quality and effectiveness of their technical regulations;
(c) development of joint initiatives for managing risks to health, safety or the environment, and preventing deceptive practices;
(d) building understanding and capacity to promote better regulatory compliance; and (e) exchange of market surveillance information, where appropriate.
3. The Parties shall seek to identify, develop, and, as appropriate, conclude trade facilitating initiatives that are appropriate for particular issues or sectors, including:
(a) transparency;
(b) alignment with international standards;
(c) harmonisation or equivalence of technical regulations;
(d) mechanisms to facilitate acceptance of conformity assessment procedures conducted in the territory of the other Party; and
(e) understandings reached on compliance issues.
4. Any initiatives referred to in paragraph 3 may include the use of asymmetrical approaches where appropriate.
5. On the request of the other Party, a Party shall give favourable consideration to any sector-specific proposal that the other Party makes for further co-operation under this Chapter.
6. The Parties shall implement paragraphs 1 through 5 by establishing work programmes, on a case by case basis, by working groups established under Article 6.10.2(j).

Article 6.9. Transparency

1. In order to enhance the opportunity for the other Party to provide meaningful comments on a proposed technical regulation or conformity assessment procedure, a Party publishing a notice or transmitting a notification in accordance with Article 2.9, 2.10, 5.6 or 5.7 of the TBT Agreement shall include an explanation of the objectives and the rationale for the proposal and how it addresses those matters.
2. At the same time as it notifies WTO Members of the proposal in accordance with the TBT Agreement:
(a) Korea shall transmit the notification referred to in paragraph 1 electronically to New Zealand's enquiry point established under Article 10 of the TBT Agreement ; and
(b) New Zealand shall transmit the notification referred to in paragraph 1 electronically to Korea's contact point established under Article 6.10.5.
3. Each Party should allow at least 60 days after it transmits a notification in accordance with Article 2.9 or 5.6 of the TBT Agreement for the other Party to make comments on the proposal in writing.
4. Where goods are covered by an annex or an implementing arrangement to which Article 6.12 applies and a Party takes a measure to manage an urgent problem that it considers those goods may pose to health, safety or the environment, it shall notify the other Party immediately, through the contact points established under Article 6.10.5, of the measure and the reasons for the imposition of the measure.
5. On the request of the other Party, a Party shall provide the other Party with information regarding the objective of, and rationale for, a standard, technical regulation, or conformity assessment procedure that the Party has adopted or is proposing to adopt.

Article 6.10. Committee on Technical Barriers to Trade

1. The Parties hereby establish a Committee on Technical Barriers to Trade (hereinafter referred to as "the Committee"), which shall comprise representatives of the Parties. The Committee may meet in person, via teleconference, via video-conference or through any other means, as agreed by the Parties.
2. The functions of the Committee shall include:
(a) promoting and monitoring the implementation and administration of this Chapter;
(b) enhancing co-operation in the development and improvement of standards, technical regulations, and conformity assessment procedures;
(c) ensuring appropriate steps are taken promptly to address any issue that a Party may raise related to the development, adoption, application, or enforcement of technical regulations or conformity assessment procedures;
(d) considering any sector-specific proposal a Party makes for further co-operation between regulatory authorities, accreditation bodies or conformity assessment bodies, including, where appropriate, between governmental and nongovernmental conformity assessment bodies located in the Parties' territories;
(e) considering a request that a Party recognise the results of conformity assessment procedures conducted by bodies in the other Party's territory, including a request for the negotiation of an agreement, in a sector nominated by that other Party;
(f) exchanging information on developments in non-governmental, regional, and multilateral fora engaged in activities related to standards, technical regulations, and conformity assessment procedures;
(g) on the request of the other Party, promptly facilitating technical discussions on any matter arising under this Chapter, which shall be without prejudice to the rights and obligations of the Parties under Chapter 19 (Dispute Settlement);
(h) taking any other steps the Parties consider will enhance their implementation of the TBT Agreement and facilitate trade in goods between them;
(i) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to the Chapter in light of those developments; and
(j) establishing working groups to undertake specific tasks under this Chapter.
3. The Parties shall take such reasonable measures as may be available to them to ensure that representatives of bodies responsible for the technical regulations, standards or conformity assessment procedures that are the subject of the technical discussions under paragraph 2(g) participate in those discussions.
4. The Committee shall meet within one year of entry into force of this Agreement, or at times mutually agreed by the Parties.
5. The Committee shall be coordinated by the following contact points:
(a) for Korea, the Korean Agency for Technology and Standards, or its successor; and
(b) for New Zealand, the Ministry of Business, Innovation and Employment, or its successor.
6. The contact points may communicate by any agreed method that is appropriate for the efficient and effective discharge of their functions.
7. The Parties shall notify each other promptly of any change of their contact points or any changes to the details of the relevant officials.
8. The contact points shall work jointly in order to facilitate implementation of this Chapter and co-operation between the Parties in all matters pertaining to this Chapter.

Article 6.11. Information Exchange

A Party shall provide any information or explanation requested by the other Party pursuant to this Chapter in print form or electronically within a reasonable period. A Party shall endeavour to respond to each such request within 60 days.

Article 6.12. Annexes and Implementing Arrangements

1. The Parties may conclude annexes to this Chapter setting out agreed principles and procedures relating to technical regulations and conformity assessment procedures applicable to goods traded between them.
2. The Parties may, through the Committee, conclude implementing arrangements setting out:
(a) details for the implementation of the annexes to this Chapter; and
(b) arrangements resulting from work programmes established under Article 6.8.6.
3. The Parties shall take account of any existing bilateral, regional and multilateral arrangements concerning technical regulations and conformity assessment procedures that both Parties participate in when developing annexes and implementing arrangements.
4. Where implementing arrangements have been concluded, they shall be applied to trade between the Parties.
5. The Parties agree to maintain a programme of ongoing review and enhancement of annexes and implementing arrangements.
6. The Parties shall facilitate dialogue on mutual recognition agreements or arrangements for conformity assessment, and discuss the feasibility of developing mutual recognition agreements or arrangements.
The Parties shall give due consideration to any sector specific proposal made by either Party.(1)

Chapter 7. Trade Remedies

Article 7.1. Definitions

For the purposes of this Section:
bilateral safeguard measure means a measure described in Article 7.2;
domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating in the territory of a Party, or those whose collective output of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;
provisional bilateral safeguard measure means a measure described in Article 7.4;
serious injury means a significant overall impairment in the position of a domestic industry;
threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture, or remote possibility, is clearly imminent; and
transition period means, in relation to a particular good, the period from the date of entry into force of this Agreement until five years after the date of the elimination or the completion of the reduction period of the customs duties in accordance with that Party's Schedule of tariff commitments in Annex 2-A (Tariff Schedule).

Article 7.2. Application of a Bilateral Safeguard Measure

If, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to a domestic industry producing a like or directly competitive good, the Party may:
(a) suspend the further reduction of any rate of customs duty on the good provided for under this Agreement;
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (hereinafter referred to as "MFN") applied rate of duty on the good in effect at the time the bilateral safeguard measure is applied; or
(ii) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement; or
(c) in the case of a customs duty applied to a good on a seasonal basis, increase the rate of duty to a level that, for each season, does not exceed the lesser of:
(i) the MFN applied rate of duty on the good in effect for the corresponding season immediately preceding the date of application of the bilateral safeguard measure; or
(ii) the MFN applied rate of duty on the good in effect for the corresponding season immediately preceding the date of entry into force of this Agreement.

Article 7.3. Conditions and Limitations

1. A Party shall apply a bilateral safeguard measure only following an investigation by the Party's competent authorities in accordance with the procedures and requirements provided for in Articles 3 and 4.2 of the Safeguards Agreement, and to this end, Articles 3 and 4.2 of the Safeguards Agreement are incorporated into and made part of this Agreement, mutatis mutandis.
2. A Party shall notify the other Party in writing upon initiation of an investigation described in paragraph 1 and shall consult with the other Party as far in advance of applying a bilateral safeguard measure as practicable, with a view to reviewing the information arising from the investigation and exchanging views on the bilateral safeguard measure.
3. Each Party shall ensure that its competent authorities complete any such investigation within one year of its date of initiation.
4. Neither Party shall apply or maintain a bilateral safeguard measure:
(a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment;
(b) for a period exceeding two years, except that the period may be extended by up to one year if the competent authorities of the applying Party determine, in conformity with the procedures specified in this Article, that the bilateral safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, provided that the total period of application of a bilateral safeguard measure, including the period of initial application and any extension thereof, shall not exceed three years; or
(c) beyond the expiration of the transition period, except with the consent of the other Party.
5. Neither Party shall apply a bilateral safeguard measure more than once against the same good.
6. No bilateral safeguard measure or provisional bilateral safeguard measure shall be applied against a particular good while a global safeguard measure under Article XIX of GATT 1994 and the Safeguard Agreement in respect of that good is in place. In the event that a global safeguard measure is taken in respect of a particular good, any existing bilateral safeguard measure or provisional bilateral safeguard measure which is taken against that good in accordance with this Section shall be terminated.
7. Where the expected duration of a bilateral safeguard measure is over one year, the applying Party shall progressively liberalise it at regular intervals.
8. When a Party terminates a bilateral safeguard measure, the rate of customs duty shall be the rate that, according to the Party's Schedule to Annex 2-A (Tariff Schedule), would have been in effect but for the bilateral safeguard measure.

Article 7.4. Provisional Bilateral Safeguard Measure

1. In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a provisional bilateral safeguard measure in accordance with a preliminary determination by its competent authorities that there is clear evidence that imports of an originating good from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and cause or threaten to cause serious injury to its domestic industry.
2. Before applying a provisional bilateral safeguard measure, the applying Party shall notify the other Party and shall immediately initiate consultations after applying the provisional bilateral safeguard measure.
3. The duration of any provisional bilateral safeguard measure shall not exceed 200 days, during which time the applying Party shall comply with the requirements of Article 7.3.1.
4. The applying Party shall promptly refund any additional customs duties collected as a result of a provisional bilateral safeguard measure if the investigation conducted in accordance with Article 7.3.1 does not result in a finding that the requirements of Article 7.2 have been met. The duration of any provisional measure shall be counted as part of the period described in Article 7.3.4(b).

Article 7.5. Compensation

1. No later than 30 days after it applies a bilateral safeguard measure, a Party shall afford an opportunity for the other Party to consult with it regarding appropriate trade liberalising compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the bilateral safeguard measure. The applying Party shall provide such compensation as the Parties mutually agree.
2. If the Parties are unable to agree on compensation within 30 days after consultations begin in accordance with paragraph 1, the Party against whose originating good the bilateral safeguard measure is applied may suspend the application of concessions with respect to originating goods of the applying Party that have trade effects substantially equivalent to the bilateral safeguard measure.
3. The applying Party's obligation to provide compensation under paragraph 1 and the other Party's right to suspend concessions in accordance with paragraph 2 shall terminate on the date the bilateral safeguard measure terminates.

Article 7.6. Global Safeguard Measures

Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Safeguards Agreement and the Agreement on Agriculture. This Agreement shall not confer any additional rights or impose any additional obligations on the Parties with respect to measures applied under Article XIX of GATT 1994 and the Safeguards Agreement or the Agreement on Agriculture, except that a Party applying such a measure under Article XIX of GATT 1994 and the Safeguards Agreement may exclude imports of an originating good of the other Party from the measure if such imports are not a cause of serious injury or threat thereof.

Article 7.7. Anti-dumping and Countervailing Measures

1. Each Party retains its rights and obligations under the WTO Agreement with regard to the application of anti-dumping and countervailing measures. Except as otherwise provided in this Chapter, nothing in this Agreement shall be construed to confer any additional rights or impose any additional obligations on a Party with respect to anti-dumping or countervailing measures.
2. In order to enhance transparency in the implementation of the WTO Agreement:
(a) the Parties confirm their current practice of counting toward the average, all individual margins, whether positive or negative, when anti-dumping margins are established on the weighted average-to-weighted average basis or transaction-to-transaction basis, or weighted average-to-transaction basis, and share their expectation that such practice will continue; (1) and
(b) the Party making such a decision to impose any anti-dumping duties pursuant to Article 9.1 of the Anti-Dumping Agreement, shall normally apply the "lesser duty" rule, by imposing a duty which is less than the dumping margin where such lesser duty would be adequate to remove the injury to the domestic industry.

Article 7.8. Notification and Consultations

1. After receipt by a Party's competent authorities of a properly documented anti-dumping application relating to imports from the other Party and before proceeding to initiate an investigation, the Party shall give written notice, at the earliest possible opportunity, to the other Party, and immediately after initiating an investigation shall afford the other Party an adequate opportunity to make inquiries and representations regarding the application.
2. As soon as possible after an application for countervailing measures is accepted by the competent authorities of a Party, and in any event before the initiation of an investigation, and if products of the other Party may be subject to such investigation, the other Party shall be invited for consultations with the aim of clarifying the situation and arriving at a mutually agreed solution.

Article 7.9. Undertakings

1. After a Party's competent authorities initiate an anti-dumping or countervailing duty investigation, that Party shall give written notice, which shall include information about the availability of undertakings, to the other Party.
2. In an anti-dumping investigation, where a Party's competent authorities have made a preliminary affirmative determination of dumping and injury caused by such dumping, that Party shall, to the extent possible, inform exporters of the other Party about the availability of undertakings and extend reasonable consideration to undertakings requested by the exporters of the other Party.
3. In a countervailing duty investigation, where a Party's competent authorities have made a preliminary affirmative determination of subsidisation and injury caused by such subsidisation, that Party shall inform the other Party, and to the extent possible exporters of the other Party, about the availability of undertakings and extend reasonable consideration to undertakings requested by the other Party or the exporters of the other Party. 1 This is without prejudice to the position each Party takes in the WTO's Doha Development Agenda negotiations on Rules.

Chapter 8. Cross-border Trade In Services

Article 8.1. Objectives

The objectives of this Chapter are to:
(a) facilitate expansion of trade in cross-border services on a mutually advantageous basis; and
(b) improve the efficiency and transparency of the Parties' respective services sectors and competitiveness of their export trade working towards progressive liberalisation, while recognising the right of the Parties to regulate, including to introduce new regulations to support government policy objectives which reflect local circumstances, and the role of governments in providing and funding public services, giving due respect to national policy objectives including where these reflect local circumstances.

Article 8.2. Definitions

For the purposes of this Chapter:
aircraft repair and maintenance services means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and does not include so-called line maintenance;
computer reservation system services means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued; cross-border trade in services means the supply of a service:
(a) from the territory of a Party into the territory of the other Party;
(b) in the territory of a Party to the service consumer of the other Party; or
(c) by a service supplier of a Party, through presence of natural persons of that Party in the territory of the other Party, but does not include the supply of a service in the territory of a Party by a covered investment or an investment of an investor of the other Party as defined in Article 10.2 (Definitions);
enterprise means an enterprise as defined in Article 1.5 (Definitions), and a branch of an enterprise; enterprise of a Party means an enterprise constituted or organised under domestic laws of a Party, and a branch located in the territory of a Party and carrying out business activities there; financial services means any service of a financial nature including those defined in paragraph 5(a) of the Annex on Financial Services of GATS;
natural person of the other Party means:
(a) with respect to natural persons of Korea, a Korean national within the meaning of the Nationality Act, or its successor legislation; and
(b) with respect to natural persons of New Zealand, a New Zealand national or a permanent resident under its domestic laws;
selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services or the applicable conditions;
services includes any service in any sector except services supplied in the exercise of governmental authority;
service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers; service supplier of a Party means a person of that Party that seeks to supply or supplies a service; and
specialty air services means air services which are non-transportation air services, such as aerial firefighting, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, and helicopter-lift for logging and construction, and other airborne agricultural, industrial, and inspection services.

Article 8.3. Scope

1. This Chapter applies to measures adopted or maintained by a Party affecting cross-border trade in services by service suppliers of the other Party. Such measures include measures affecting:
(a) the production, distribution, marketing, sale, and delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally;
(d) the presence of persons of a Party for the supply of a service in the territory of the other Party; and
(e) the provision of a bond or other form of financial security as a condition for the supply of a service.
2. Articles 8.6 and 8.10 shall also apply to measures adopted or maintained by a Party affecting the supply of a service in its territory by a covered investment. (1)
3. This Chapter shall not apply to:
(a) financial services as defined in Article 8.2;
(b) government procurement;
(c) services supplied in the exercise of governmental authority;
(d) subsidies or grants provided by a Party or a state enterprise thereof, including government-supported loans, guarantees, and insurance, or to any conditions attached to the receipt or continued receipt of such subsidies or grants, whether or not such subsidies or grants are offered exclusively to domestic services, service consumers or service suppliers, except as provided for in Article 8.9;
(e) measures affecting natural persons seeking access to the employment market of a Party;
(f) measures regarding citizenship, nationality, residence or employment on a permanent basis; or
(g) measures affecting air transport services or related services in support of air services except that this Chapter shall apply to measures affecting:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) the selling and marketing of air transport services;
(iii) computer reservation system services; and
(iv) specialty air services.

Article 8.4. National Treatment

Each Party shall accord to services and service suppliers of the other Party, treatment no less favorable than that it accords, in like circumstances, to its own services and service suppliers.

Article 8.5. Most-favoured-nation Treatment

Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than that it accords, in like circumstances, to services and service suppliers of a non-Party.

Article 8.6. Market Access

Neither Party shall adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:
(a) impose limitations on:
(i) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers, or the requirements of an economic needs test;
(ii) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(iii) the total number of service operations or the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; (2) or
(iv) the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or
(b) restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.

Article 8.7. Local Presence

Neither Party shall require a service supplier of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the supply of cross-border trade in services.

Article 8.8. Non-conforming Measures

1. Articles 8.4 through 8.7 shall not apply to:
(a) any existing non-conforming measure that is maintained by a Party at:
(i) the central level of government, as set out by that Party in its Schedule to Annex I; or
(ii) a local level of government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 8.4 through 8.7.
2. Articles 8.4 through 8.7 shall not apply to any measure that a Party adopts or maintains with respect to sectors, subsectors, or activities as set out in its Schedule to Annex II.

Article 8.9. Subsidies

1. Except as provided for in this Article, subsidies related to trade in services shall not be covered by this Chapter.
2. The Parties shall consider the issue of disciplines on the possible trade distorting effects of subsidies in relation to trade in services in the light of any disciplines agreed under Article XV of GATS, with a view to the incorporation of such disciplines into this Agreement.
3. On the request of a Party that considers it is adversely affected by a subsidy related to trade in services of the other Party, the Parties shall enter into consultations on such matters.

Article 8.10. Domestic Regulation

1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Where authorisation is required for the supply of a service, the competent authorities of that Party shall:
(a) in the case of an incomplete application, on the request of the applicant, identify the necessary additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe;
(b) within a reasonable period of time after the submission of an application is considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application;
(c) on the request of the applicant, provide, without undue delay, information concerning the status of the application under consideration; and
(d) if an application is terminated or denied, to the maximum extent possible, inform the applicant in writing, and upon request and without undue delay, provide the reasons for such action. Consistent with the denying Party's domestic laws and regulations, the applicant shall have the possibility of resubmitting, at its discretion, a new application.
3. Paragraph 2 shall not apply to authorisation requirements that a Party adopts or maintains with respect to sectors, subsectors, or activities as set out in its Schedules to Annexes I and II.
4. With a view to ensuring that measures adopted or maintained by a Party relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to cross-border trade in services, each Party shall ensure that such measures are:
(a) based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) not more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing procedures, not in themselves a restriction on the supply of the service.
5. Each Party shall maintain or institute as soon as practicable, judicial, arbitral or administrative tribunals or procedures which, on the request of an affected services supplier, provide for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review.
6. The provisions of paragraph 5 shall not be construed to require a Party to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.
7. In determining whether a Party is in conformity with its obligations under paragraph 4, account shall be taken of international standards of relevant international organisations applied by that Party.
8. Subject to any measures a Party adopts or maintains with respect to sectors, subsectors, or activities regarding professional services as set out in its Schedules to Annexes I and II, each Party shall provide adequate procedures to verify the competence of professionals of the other Party.
9. If the results of the negotiations related to Article VI:4 of GATS (or the results of any similar negotiations undertaken in other multilateral fora in which both Parties participate) enter into effect, this Article shall be amended, as appropriate, after consultations between the Parties, to bring those results into effect under this Agreement. The Parties shall co-ordinate on such negotiations, as appropriate.

Article 8.11. Recognition (3)

1. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing, or certification of services suppliers, and subject to the requirements of paragraph 4, a Party may recognise the education or experience obtained, requirements met, or licenses or certifications granted in the other Party or a non-Party. Such recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously.
2. Where a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met, or licenses or certifications granted in the territory of a non-Party, nothing in Article 8.5 shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licenses or certifications granted in the territory of the other Party.
3. A Party that is a party to an agreement or arrangement of the type referred to in paragraph 1, whether existing or future, shall afford adequate opportunity for the other Party, upon request, to negotiate its accession to such an agreement or arrangement or to negotiate comparable ones with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education or experience obtained, requirements met, or licenses or certifications granted in the territory of the other Party should be recognised.
4. Neither Party shall accord recognition in a manner that would constitute a means of discrimination between countries in the application of its standards or criteria for the authorisation, licensing, or certification of service suppliers, or a disguised restriction on trade in services.

Article 8.12. Education Co-operation

1. The Parties recognise the importance of education as a factor of social and national development as well as a means for facilitating a closer partnership between the Parties.
2. The Parties shall designate contact points to facilitate dialogue and exchange of information on education co-operation.
3. The Parties shall encourage and facilitate dialogue and co-operation on issues of mutual interest in the field of education to benefit both Parties.

Article 8.13. Payments and Transfers

1. A Party shall not apply restrictions on international transfers and payments for current transactions related to cross-border trade in services.
2. Each Party shall permit such payments and transfers relating to the cross-border supply of services to be made in a freely usable currency at the market rate of exchange prevailing at the time of the payment or transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a payment or transfer through the equitable, non-discriminatory, and good faith application of its domestic laws and regulations relating to:
(a) bankruptcy, insolvency, or the protection of the rights of creditors;
(b) issuing, trading, or dealing in securities, futures, options, or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offences;
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings;
(f) social security, public retirement or compulsory savings schemes; or
(g) taxation.

Article 8.14. Denial of Benefits

1. Subject to notification (4) to the other Party, a Party may deny the benefits of this Chapter to:
(a) a service supplier of the other Party where the service is being supplied by an enterprise that is owned or controlled by persons of a non-Party and the enterprise has no substantive business operations in the territory of the other Party; or
(b) a service supplier of the other Party where the service is being supplied by an enterprise that is owned or controlled by persons of the denying Party and the enterprise has no substantive business operations in the territory of the other Party.
2. A Party that denies benefits pursuant to paragraph 1 shall enter into consultations promptly following notification on the request of the other Party.
Such consultations shall be without prejudice to the Parties' rights under Chapter 19 (Dispute Settlement) and under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes.

Article 8.15. Committee on Services

1. For the purposes of ensuring the effective implementation and operation of this Chapter, the Parties hereby establish a Committee on Services (hereinafter referred to as "the Committee") to consider any matter arising under this Chapter and Chapter 9 (Temporary Entry of Business Persons).
2. The Committee shall:
(a) consider any matters related to the implementation of this Chapter and Chapter 9 (Temporary Entry of Business Persons);
(b) review the implementation and operation of this Chapter and Chapter 9 (Temporary Entry of Business Persons);
(c) explore measures for the further expansion of cross-border trade in services and movement of business persons between the Parties;
(d) facilitate dialogue on professional services issues, and review efforts to develop reciprocal recognition outcomes where mutual interests have been identified; and (e) take any other action it decides appropriate for the implementation of this Chapter and Chapter 9 (Temporary Entry of Business Persons).
3. The Committee shall meet within one year of entry into force of this Agreement and subsequently thereafter as mutually agreed by the Parties.
4. The Committee may establish, where appropriate, working groups to facilitate exchanges on specific topics affecting cross-border trade in services, including professional services. Individual working groups may seek input from public bodies or industry representatives.
5. The Committee may meet via teleconference, via video-conference or through any other means as mutually agreed by the Parties. Should the Parties decide to meet in person, the venue for the meetings shall, unless the Parties otherwise decide, alternate between the Parties.
4 A Party shall, to the extent practicable, provide such notification to the other Party prior to denying the benefits of this Chapter.

Article 8.16. Work Programme on Financial Services

Unless the Parties otherwise agree, the Parties will meet within three years of entry into force of this Agreement to discuss the feasibility and convenience of incorporating financial services into this Agreement.

Article 8.17. Telecommunication Services

1. The rights and obligations of the Parties in respect of telecommunications shall be governed by the Annex on Telecommunications of GATS, which is hereby incorporated into and made part of this Chapter, mutatis mutandis.
2. The Parties affirm their commitment to the principles set forth in the WTO Basic Telecommunications Reference Paper as attached in Annex 8-B.

Chapter 9. Temporary Entry of Business Persons

Article 9.1. Objectives

The objectives of this Chapter are to:
(a) facilitate the temporary entry of business persons of either Party engaged in the conduct of trade and investment between the Parties;
(b) establish streamlined and transparent immigration procedures for applications made by business persons of the other Party; and
(c) provide for rights and obligations additional to those set out in Chapters 8 (Cross-Border Trade in Services) and 10 (Investment) in relation to the temporary entry of business persons between the Parties, while recognising the need to ensure border security and to protect the domestic labour force and permanent employment in the territories of the Parties.

Article 9.2. Definitions

For the purposes of this Chapter:
business person means a natural person of a Party who is engaged in trade in goods, the provision of services or the conduct of investment;
business visitor means a natural person of either Party who is not seeking to enter the labour market of the other Party, whose principal place of business, actual place of remuneration, and
predominant place of accrual of profits remain outside the territory of the other Party and is:
(a) a goods seller, being a business person who is seeking temporary entry into the territory of the other Party to negotiate for the sale of goods where such negotiations do not involve direct sales to the general public;
(b) a service seller being a business person who is a sales representative of a service supplier of that Party and is seeking temporary entry into the territory of the other Party for the purpose of negotiating the sale of services for that service supplier, where such representative will not be engaged in making direct sales to the general public or in supplying services directly; or
(c) an investor of a Party, as defined in Chapter 10 (Investment), or a duly authorised representative of an investor of a Party, seeking temporary entry into the territory of the other Party to establish, expand, monitor or dispose of an investment of that investor.
commercial presence means any type of business or professional establishment, including through:
(a) the constitution, acquisition or maintenance of an enterprise; or
(b) the creation or maintenance of a branch or a representative office, within the territory of a Party;
contractual service supplier means a business person of a Party who:
(a) possesses appropriate educational and other qualifications relevant to the service to be provided;
(b) is engaged in the supply of a contracted service as an employee of a juridical person that has no commercial presence in the other Party, where the juridical person obtains a service contract from a juridical person of the other Party;
(c) has been an employee of the juridical person for a period of not less than one year immediately preceding the date of application for admission. The juridical person has to obtain a service contract for a period not exceeding one year from a juridical person in the other Party, who is the final consumer of the service which is supplied. The contract shall comply with the domestic laws and regulations of the other Party; and
(d) receives no remuneration from a juridical person located in the other Party; granting Party means a Party who receives an application for temporary entry from a business person of the other Party who is covered by Article 9.3; immigration formality means a visa, permit, pass or other document or electronic authority allowing a natural person of a Party to enter, reside or work in the territory of the granting Party;
independent service supplier/professional means a natural person of a Party who:
(a) is a self-employed services supplier working on a contractual basis, without a requirement for commercial presence; (b) has advanced technical or professional skills and a valid contract which enables them to work in the territory of the other Party; and
(c) has a qualification resulting from three or more years of formal post-secondary school education leading to a recognised degree or diploma in the field in which the natural person wishes to supply their services; installer and servicer means a natural person who is an installer or servicer of machinery or equipment, where such installation or servicing by the supplying company is a condition of purchase of the said machinery or equipment. An installer or servicer cannot perform services which are not related to the service activity which is the subject of the contract;
intra-corporate transferee means an executive, manager or a specialist who is an employee of a service supplier or investor of a Party with a commercial presence in the territory of the other Party and who have been so employed for a period not less than one year immediately preceding the date of the application for temporary entry where:
(a) executive means a natural person within an organisation who primarily directs the management of the organisation, exercises wide latitude in decision-making, and receives only general supervision or direction from higher level executives, the board of directors, or stockholders of the business. An executive would not directly perform tasks related to the actual supply of a service nor the operation of an investment;
(b) manager means a natural person within an organisation who primarily directs the organisation or a department of the organisation;
supervises and controls the work of other supervisory, professional or managerial employees; has the authority to hire and fire or recommend hiring, firing or other personnel actions; and exercises discretionary authority over day-to-day operations. This does not include a first-line supervisor, unless the employees supervised are professionals, nor does this include an employee who primarily performs tasks necessary for the supply of the service or the operation of an investment; and
(c) specialist means a natural person within an organisation who possesses knowledge at an advanced level of technical expertise and proprietary knowledge on the services, research, equipment, techniques, or management of the organisation;
natural person of a Party means:
(a) for Korea, a Korean national within the meaning of the Nationality Act, or its successor legislation, or a permanent resident of Korea; and
(b) for New Zealand, a New Zealand national or a permanent resident under its domestic laws; and
temporary entry means entry into the territory of a Party by a business person covered by this Chapter of the other Party without the intent to establish permanent residence.

Article 9.3. Scope

1. This Chapter shall apply, as set out in each Party's Schedule of specific commitments in Annex 9-A or 9-B to measures affecting the temporary entry of business persons of a Party into the territory of the other Party. Such business persons may include:
(a) business visitors;
(b) independent service suppliers/professionals;
(c) intra-corporate transferees;
(d) installers and servicers; or
(e) contractual service suppliers.
2. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of the other Party, nor shall it apply to measures regarding citizenship, nationality, residence or employment on a permanent basis.
3. Nothing in this Chapter or Chapter 8 (Cross-Border Trade in Services) or 10 (Investment) shall prevent a Party from applying measures to regulate the entry of natural persons of the other Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in such a manner as to nullify or impair the commitments made by a Party under this Agreement.
The sole fact of requiring a visa for natural persons of certain countries and not for those of others shall not be regarded as nullifying or impairing commitments made by a Party under this Agreement.

Article 9.4. Grant of Temporary Entry

1. Each Party shall, in accordance with that Party's Schedule of specific commitments in Annex 9-A or 9-B, grant temporary entry to business persons of the other Party who are otherwise qualified for entry in accordance with Article 9.3.
2. Each Party shall set out in Annexes 9-A and 9-B a Schedule containing its commitments for the entry and temporary stay in its territory of business persons of the other Party. These Schedules of specific commitments shall specify the conditions and limitations for entry and temporary stay, including the requirements and length of stay, for each category of business persons included in each Party's Schedule of specific commitments.
3. Where a Party makes a commitment under paragraphs 1 and 2, that Party shall grant temporary entry or extension of temporary stay to business persons of the other Party provided those business persons:
(a) follow prescribed application procedures for the immigration formality sought; and
(b) meet all relevant eligibility requirements for entry to the granting Party.
4. Temporary entry granted pursuant to this Chapter shall not replace the requirements needed to carry out a profession or activity according to the specific laws and regulations in force in the territory of the Party authorising the temporary entry.
5. Any fees imposed in respect of the processing of an immigration formality shall be reasonable and in accordance with domestic laws. Neither Party shall, except as provided for in its Schedule of specific commitments in Annex 9-A or 9-B, require labour market tests or other procedures of similar effect, or impose or maintain any numerical restriction relating to temporary entry as a condition for entry.

Article 9.5. Transparency

Each Party shall:
(a) publish, such as on its immigration website, by the date of entry into force of this Agreement, the requirements for temporary entry under this Chapter, including explanatory material and relevant forms and documents that will enable business persons of the other Party to become acquainted with its requirements; and
(b) upon modifying or amending an immigration measure that affects the temporary entry of business persons, ensure that the information published pursuant to this Article is updated by the date of entry into force of that modification or amendment.

Article 9.6. Expeditious Application Procedures

1. Where an application for an immigration formality is required by a Party, the Party shall process expeditiously complete applications for immigration formalities or extensions thereof, received from business persons of the other Party covered by Article 9.3.
2. Upon receipt of an application for temporary entry that has been completed and submitted in accordance with its domestic laws and regulations, a Party shall, without undue delay, make a decision on the application and inform the applicant of the decision including, if approved, the period of stay and other conditions.
3. On the request of an applicant, a Party in receipt of a completed application for temporary entry shall provide, without undue delay, information concerning the status of the application.

Article 9.7. Dispute Settlement

1. The Parties shall endeavour to favourably resolve, through consultations or negotiations between the Parties, any differences or dispute arising out of the implementation of this Chapter.
2. A Party shall not initiate proceedings under Chapter 19 (Dispute Settlement) regarding a refusal to grant temporary entry under this Chapter unless:
(a) the matter involves a pattern of practice; and
(b) the business person has exhausted any available administrative remedies regarding the particular matter.
3. The remedies referred to in paragraph 2(b) shall be deemed to be exhausted if a final determination in the matter has not been issued by the relevant competent authority within one year of the institution of an administrative proceeding, and the failure to issue a determination is not attributable to delay caused by the business person.

Article 9.8. Relation to other Chapters

Except for this Chapter, Chapters 1 (Initial Provisions and Definitions), 18 (Institutional Provisions), 19 (Dispute Settlement) to the extent permitted by Article 9.7, 20 (General Provisions and Exceptions) and 21 (Final Provisions), and Articles 17.2 (Publication), 17.4 (Administrative Proceedings) and 17.5 (Notification and Provision of Information), nothing in this Agreement shall impose any obligation on a Party regarding its immigration measures.

Chapter 10. Investment

Article 10.1. Objectives

The objectives of this Chapter are to encourage and promote the flow of investment between the Parties on a mutually advantageous basis, under conditions of transparency within a stable framework of rules to ensure the protection and security of investments by investors of the other Party within each Party's territory, while recognising the right of the Parties to regulate and the responsibility of governments to protect public health, safety and the environment.

Article 10.2. Definitions

For the purposes of this Chapter:
appointing authority means:
(a) in the case of arbitration under the ICSID or ICSID Additional Facility Rules in Article 10.20.3(a) and (b), the Secretary-General of ICSID, and in the case of arbitration under the UNCITRAL Rules in Article 10.20.3(c), the Secretary General of the Permanent Court of Arbitration; or
(b) any person as agreed between the disputing parties; claimant means an investor of a Party that is a party to an investment dispute with the other Party; disputing parties means the claimant and the respondent;
disputing party means either the claimant or the respondent;
enterprise means an enterprise as defined in Article 1.5 (Definitions), and a branch of an enterprise;
enterprise of a Party means an enterprise constituted or organised under the domestic laws of a Party, and a branch located in the territory of a Party and carrying out business activities there;
ICSID Additional Facility Rules means the Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Centre for Settlement of Investment Disputes;
ICSID Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, done at Washington, 18 March, 1965;
investment means every asset that an investor owns or controls, directly or indirectly, that has the characteristics of an investment, including such characteristics as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. Forms that an investment may take include:
(a) an enterprise;
(b) shares, stocks or other forms of equity participation in an enterprise, including rights derived therefrom;
(c) bonds, including government issued bonds, debentures, and loans (1) and other forms of debt, and rights derived therefrom;
(d) futures, options and other derivatives;
(e) rights under contracts, including turnkey, construction, management, production or revenue-sharing contracts;
(f) intellectual property rights;
(g) rights conferred pursuant to law or contract such as concessions, licences, authorisations, and permits;(2) (3) and
(h) other tangible or intangible, movable or immovable property, and related property rights, such as leases, mortgages, liens, and pledges; (4)
investor of a non-Party means, with respect to a Party, an investor that attempts to make, is making, or has made an investment in the territory of that Party, that is not an investor of either Party;
investor of a Party means a Party or state enterprise thereof, or a national or an enterprise of a Party, that attempts to make, is making, or has made an investment in the territory of the other Party;

provided that in any dispute related to an investment of an investor of the Party, a natural person who is a dual national shall be deemed to be exclusively a national of the State of his or her dominant and effective nationality;
New York Convention means the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York, 10 June 1958;
non-disputing Party means a Party that is not a party to an investment dispute;
protected information means confidential business information or information that is privileged or otherwise protected from disclosure under a Party's domestic laws and regulations, including classified government information; respondent means a Party against which a claim is made under Section B; and
UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law, as revised in 2010 or as subsequently agreed between the Parties.

Section A. Investment

Article 10.3. Scope

1. This Chapter applies to measures adopted or maintained by a Party relating to:
(a) investors of the other Party;
(b) covered investments; and
(c) with respect to Articles 10.11 and 10.13, all investments in the territory of the Party.
2. For greater certainty, the provisions of this Chapter do not bind either Party in relation to any act or fact that took place or any situation that ceased to exist before the date of entry into force of this Agreement.
3. This Chapter shall not apply to services supplied in the exercise of governmental authority, as defined in Article 8.2 (Definitions).
4. This Chapter shall not apply to financial services as defined in Article 8.2 (Definitions).

Article 10.4. Relation to other Chapters

1. In the event of any inconsistency between this Chapter and another Chapter, the other Chapter shall prevail to the extent of the inconsistency.
2. A requirement by a Party that a service supplier of the other Party post a bond or other form of financial security as a condition of the cross-border supply of a service does not of itself make this Chapter applicable to measures adopted or maintained by the Party relating to such cross-border supply of the service. This Chapter applies to measures adopted or maintained by the Party relating to the posted bond or financial security, to the extent that such bond or financial security is a covered investment.

Article 10.5. National Treatment

1. Each Party shall accord to investors of the other Party treatment no less favourable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.

Article 10.6. Most-favoured-nation Treatment

1. Each Party shall accord to investors of the other Party treatment no less favourable than that it accords, in like circumstances, to investors of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.
2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of investors of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.
3. For greater certainty, the treatment referred to in this Article does not encompass international dispute resolution procedures or mechanisms, including those in Section B. 

Article 10.7. Minimum Standard of Treatment (5)

1. Each Party shall accord to covered investments treatment in accordance with the customary international law minimum standard of treatment, including fair and equitable treatment and full protection and security.
2. For greater certainty, the concepts of fair and equitable treatment and full protection and security set out in paragraph 1 do not require treatment in addition to or beyond that which is required by the customary international law minimum standard of treatment and do not create additional substantive rights. The obligation in paragraph 1 to provide:
(a) "fair and equitable treatment" includes the obligation not to deny justice in criminal, civil, or administrative adjudicatory proceedings in accordance with the general principle of law of due process; and
(b) "full protection and security" requires each Party to take such measures as may be reasonably necessary in the exercise of its police powers to ensure the protection and security of the investment.
3. A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this Article. 5 This Article shall be interpreted in accordance with Annex 10-A.

Article 10.8. Treatment In Case of Armed Conflict or Civil Strife

1. Notwithstanding Article 10.15.5(b), each Party shall accord to investors of the other Party, and to covered investments, treatment no less favourable than that which the Party accords to its own investors and their investments, or investors of any non-Party and their investments, with respect to measures it adopts or maintains relating to losses suffered by investments in its territory owing to war or other armed conflict, or revolt, insurrection, riot, or other civil strife.
2. Notwithstanding paragraph 1, if an investor of a Party, in the situations referred to in paragraph 1, suffers a loss in the territory of the other Party resulting from:
(a) requisitioning of its covered investment or part thereof by the latter's forces or authorities; or
(b) destruction of its covered investment or part thereof by the latter's forces or authorities, which was not required by the necessity of the situation, the latter Party shall provide the investor restitution, compensation, or both, as appropriate, for such loss. (6) Any compensation shall be prompt, adequate, and effective in accordance with paragraphs 2 through 4 of Article 10.9.
3. Paragraph 1 does not apply to existing measures relating to subsidies or grants provided by a Party, including government-supported loans, guarantees, and insurance, that would be inconsistent with Article 10.5 but for Article 10.15.5(b).

Article 10.9. Expropriation and Compensation (7)

1. Neither Party shall nationalise or expropriate a covered investment either directly or indirectly through measures equivalent to nationalisation or expropriation (hereinafter referred to as "expropriation"), except:
(a) for a public purpose;
(b) in a non-discriminatory manner;
(c) on payment of prompt, adequate, and effective compensation in accordance with paragraphs 2 through 4; and (d) in accordance with due process of law.
2. Compensation shall:
(a) be paid without delay;
(b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place (hereinafter referred to as "the date of expropriation")
(c) not reflect any change in value occurring because the intended expropriation had become known earlier; and (d) be fully realisable and freely transferable.
3. If the fair market value is denominated in a freely usable currency, the compensation paid shall be no less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment.
4. If the fair market value is denominated in a currency that is not freely usable, the compensation paid, converted into the currency of payment at the market rate of exchange prevailing on the date of payment, shall be no less than:
(a) the fair market value on the date of expropriation, converted into a freely usable currency at the market rate of exchange prevailing on that date; plus
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation until the date of payment.
5. This Article does not apply to the issuance of compulsory licenses granted in relation to intellectual property rights in accordance with the TRIPS Agreement, or to the revocation, limitation, or creation of intellectual property rights, to the extent that such issuance,  revocation, limitation, or creation is consistent with Chapter 11 (Intellectual Property Rights).(8)

Article 10.10. Transfers

1. Each Party shall permit all transfers relating to a covered investment to be made freely and without delay into and out of its territory. Such transfers include:
(a) contributions to capital, including the initial contribution;
(b) profits, dividends, interest, capital gains, royalty payments, management fees, and technical assistance and other fees;
(c) proceeds from the sale of all or any part of a covered investment or from the partial or complete liquidation of a covered investment;
(d) payments made under a contract entered into by the investor, or a covered investment, including payments made pursuant to a loan agreement;
(e) payments made pursuant to Articles 10.8 and 10.9;
(f) payments arising out of the settlement of a dispute; and
(g) earnings and other remuneration of personnel engaged from abroad in connection with that investment.
2. Each Party shall permit transfers relating to a covered investment to be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer through the equitable, non-discriminatory, and good faith application of its domestic laws and regulations relating to:
(a) bankruptcy, insolvency, or the protection of the rights of creditors;
(b) issuing, trading, or dealing in securities, futures, options, or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offenses;
(e) ensuring compliance with orders or judgements in judicial or administrative proceedings;
8 For greater certainty, the Parties recognise that, for the purposes of this Article, the term "revocation" of intellectual property rights includes the cancellation or nullification of such rights, and the term "limitation" of intellectual property rights includes exceptions to such rights.
(f) social security, public retirement or compulsory savings schemes; or
(g) taxation.

Article 10.11. Performance Requirements