4. Requests for information or technical discussions and communications shall be conveyed through the respective contact points designated pursuant to Article 7.11 (Contact Points).
Article 7.9. Cooperation on TBT Related Issues
1. With a view to facilitate trade, the Parties shall strengthen their cooperation in the field of technical regulations, standards and conformity assessment procedures.
2. The Parties recognise that there might be a broad range of mechanisms to support cooperation initiatives, including:
(a) promoting the use of good regulatory practices to improve the efficiency and effectiveness of technical regulations, standards and conformity assessment procedures;
(b) giving favourable consideration, upon request of the other Party, to any sector specific proposal for further cooperation;
(c) increasing their bilateral cooperation in the relevant regional and international organisations and fora dealing with the issues covered by this Chapter;
(d) providing technical advice and assistance, on mutually agreed terms and conditions, to improve practices related to the development, implementation and review of technical regulations, standards and conformity assessment procedures;
(e) providing technical assistance and cooperation, on mutually agreed terms and conditions, to build capacity and support the implementation of this Chapter.
Article 7.10. Sub-Committee on Technical Barriers to Trade
1. The Parties hereby establish a Sub-Committee on Technical Barriers to Trade (hereinafter: the Sub-Committee), composed of relevant government representatives of each Party and coordinated by:
(a) In the case of Israel: the Ministry of Economy and Industry, Foreign Trade Administration or its successor;
(b) In the case of Viet Nam: the Ministry of Science and Technology or its successor.
2. Through the Sub-Committee, the Parties shall strengthen their joint work in the fields of technical regulations, standards and conformity assessment procedures with a view to facilitating trade between the Parties;
3. The Sub-Committee’s functions include:
(a) (a) monitoring the implementation and operation of this Chapter and identifying any potential amendments to or interpretations of those commitments pursuant to Chapter 13 (Administration of the Agreement);
(b) (b) monitoring any technical discussions on matters that arise under this Chapter;
(c) (c) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments;
(d) (d) reporting to the Joint Committee on the implementation and operation of this Chapter;
(e) (e) carrying out other functions as may be delegated by the Joint Committee of the Agreement;
(f) (f) deciding on priority areas of mutual interest for future work under this Chapter and considering proposals for new sector-specific initiatives or other initiatives;
(g) (g) encouraging cooperation between the Parties in matters that pertains to this Chapter, including the development, review or modification of technical regulations, standards and conformity assessment procedures; and
(h) (h) facilitating the identification of technical capacity needs.
Article 7.11. Contact Points
1. Contact Points are responsible for communications relating to matters arising under this Chapter including ensuring communication with the relevant institutions and authorities in their respective territories as necessary for the implementation and administration of this Chapter.
2. The Contact Points are:
(a) For Israel, the Foreign Trade Administration in the Ministry of Economy and Industry or its successor.
(b) For Viet Nam, Directorate for Standards, Metrology and Quality under the Ministry of Science and Technology, or its successor; and
3. Each Party shall provide the other Party with the contact details of its contact point and shall promptly notify of any change or any amendment to the information regarding its contact point.
Chapter 8. Cross-Border Trade In Services
Article 8.1. 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;
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 for the purpose of supplying a service;
computer reservation system services means services provided by computerized 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 or cross-border supply of 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 by a person of that Party to a person of the other Party; or
(c) by a natural person of a 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;
enterprise means an “enterprise” as defined in Article 9.1 (Definitions), and a branch of an enterprise;
enterprise of a Party means an enterprise organized or constituted under the laws of a Party, or a branch located in the territory of that Party, and carrying out substantial 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;
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 nor the applicable conditions; and
service supplier of a Party means a person of that Party that supplies a service (1).
Article 8.2. Scope
1. This Chapter shall apply 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; and
(c) the access to and use of distribution, transport, or telecommunications networks and services in connection with the supply of a service.
2. For the purposes of this Chapter, measures adopted or maintained by a Party means measures adopted or maintained by:
(a) central or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central or local governments or authorities.
3. Notwithstanding paragraph 1, Articles 8.5 (Market Access), 8.8 (Domestic Regulation), and 8.9 (Transparency in Developing and Applying Regulations) shall also apply to measures adopted or maintained by a Party affecting the supply of a service in its territory through commercial presence.
4. Notwithstanding paragraph 1, this Chapter shall not apply to:
(a) financial services (2);
(b) government procurement;
(c) air services, including domestic and international air transportation services, whether scheduled or non-scheduled, and related services in support of air services, other than:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) the selling and marketing of air transport services; and
(iii) computer reservation system (CRS) services; or
(d) subsidies or grants provided by a Party, including government- supported loans, guarantees, and insurance.
5. This Chapter shall not apply to services supplied in the exercise of governmental authority in a Party’s territory. A 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.
Article 8.3. National 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 its own service suppliers.
Article 8.4. Most-Favoured-Nation Treatment (3)
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 service suppliers of a non- Party.
Article 8.5. Market Access
No Party may adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:
1. impose limitations on:
(a) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers, or the requirement of an economic needs test;
(b) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) the total number of service operations or the total quantity of services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test (4); or
(d) 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
2. restrict or require specific types of legal entities or joint ventures through which a service supplier may supply a service.
Article 8.6. Local Presence
No Party may 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 cross-border supply of a service.
Article 8.7. Non-Conforming Measures
1. Articles 8.3 (National Treatment), 8.4 (Most Favoured Nation Treatment), 8.5 (Market Access) and 8.6 (Local Presence) 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 in Annex I (Reservations for Existing Measures) ;
(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 at the date of the entry into force of this Agreement with Article 8.3 (National Treatment), Article 8.4 (Most-Favoured-Nation Treatment), Article 8.5 (Market Access) and Article 8.6 (Local Presence).
2. Articles 8.3 (National Treatment) through 8.6 (Local Presence) shall not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors, or activities as set out in its Schedule in Annex II (Reservations for Future Measures).
Article 8.8. Domestic Regulation
1. Where a Party requires authorization for the supply of a service, the Party’s competent authorities shall, within a reasonable time after the submission of an application considered complete under its laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the Party’s competent authorities shall provide, without undue delay, information concerning the status of the application. This obligation shall not apply to authorization requirements that a Party adopts or maintains with respect to sectors, sub-sectors, or activities as set out in its Schedule in Annex II (Reservations for Future Measures).
2. With a view to ensuring that measures related to qualification requirements and procedures, technical standards, and licensing requirements do not constitute unnecessary barriers to trade in services, while recognising the right to regulate and to introduce new regulations on the supply of services in order to meet national policy objectives, each Party shall endeavour to ensure, as appropriate for individual sectors, 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.
3. If the results of the negotiations related to Article VI:4 of the GATS (or the results of any similar negotiations undertaken in other multilateral fora in which the Parties participate) enter into effect, this Article shall be amended, as appropriate, after consultations among the Parties, to bring those results into effect under this Agreement. The Parties shall coordinate such consultations, as appropriate.
Article 8.9. Transparency In Developing and Applying Regulations (5)
Further to Chapter 12 (Transparency):
(a) Each Party shall establish or maintain appropriate mechanisms for responding to inquiries from interested persons regarding its regulations related to the subject matter of this Chapter.
(b) To the extent possible, each Party shall allow reasonable time between the publication of final regulations related to the subject matter of this Chapter and their effective date.
Article 8.10. Recognition
1. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorization, licensing, or certification of services suppliers, and subject to the requirements of paragraph 5, a Party may recognize the education or experience obtained, requirements met, or licenses or certifications granted in a particular country. 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 8.4 (Most-Favoured-Nation Treatment) 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. On written request of the other Party, where appropriate, a Party shall endeavour to provide information concerning any recognition agreement or arrangement that the Party or relevant bodies in either Party are a party to, within a reasonable period of time.
4. 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, if the other Party is interested, to negotiate its accession to such an agreement or arrangement or to negotiate a comparable one with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education, experience, licenses, or certifications obtained or requirements met in the other Party’s territory should be recognised.
5. No Party may accord recognition in a manner that would constitute a means of discrimination between countries in the application of its standards or criteria for the authorization, licensing, or certification of service suppliers, or a disguised restriction on trade in services.
Article 8.11. Payments and Transfers
1. Each Party shall permit all transfers and payments related to the cross-border supply of services to be made freely and without delay into and out of its territory.
2. Each Party shall permit such transfers and payments related 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 transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer or payment through the equitable, non-discriminatory, and good faith application of its laws related 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; or
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.
Article 8.12. Restrictions to Safeguard the Balance-of-Payments
1. The Parties shall endeavour to avoid the imposition of restrictions to safeguard the balance of payments.
2. In the event of serious balance-of-payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services, including on payments or transfers for transactions. It is recognised that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition.
3. The restrictions referred to in paragraph 2:
(a) shall not discriminate against the other Party;
(b) shall be consistent with the Articles of the Agreement of the International Monetary Fund done at New Hampshire on July 22, 1944;
(c) shall avoid unnecessary damage to the commercial, economic, and financial interests of the other Party;
(d) shall not exceed those necessary to deal with the circumstances described in paragraph 2;
(e) shall be temporary and be phased out progressively as the situation specified in paragraph 2 improves.
4. In determining the incidence of such restrictions, Parties may give priority to the supply of services which are more essential to their economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector.
5. Any restrictions adopted or maintained under paragraph 2, or any changes therein, shall be promptly notified to the Joint Committee.
Article 8.13. Denial of Benefits
1. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the service supplier is an enterprise owned or controlled by persons of a non- Party, and the denying Party:
(a) does not maintain diplomatic relations with the non-Party; or
(b) adopts or maintains measures with respect to the non-Party or a person of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise.
Article 8.14. Exceptions
Article 8.4 (Most-Favoured-Nation Treatment) shall not be construed so as to oblige one Party to extend to the service suppliers of the other Party the benefit of any treatment, preference or privilege resulting from any existing or future customs union,free trade area agreement, common market, economic union, monetary union or similarinternational agreement, to which either Party is or will be a party.
Chapter 9. INVESTMENT
Section A. General Provision
Article 9.1. Definitions
For the purposes of this Chapter:
claimant means an investor of a Party that is a party to an investment dispute with the other Party;
covered investment means, with respect to a Party, an investment:
(a) in its territory;
(b) directly or indirectly owned or controlled by an investor of the other Party; and
(c) existing on the date of entry into force of this Agreement, or made or acquired thereafter;
disputing parties means both the claimant and the respondent;
enterprise means any legal person or any other entity duly constituted or organised under the applicable legislation, including any corporation, trust, partnership, sole proprietorship, joint venture, association, organisation or company;
enterprise of a Party means an enterprise that is constituted or organised under the legislation of that Party and has substantial business activities in the territory of that Party;
freely usable currency means "freely usable currency" as defined under the Articles of Agreement of the International Monetary Fund;
ICSID means the International Centre for Settlement of Investment Disputes;