1. The Parties shall cooperate and jointly identify work in the field of standards, technical regulations, and conformity assessment procedures, with a view to facilitating market access. In particular, the Parties shall seek to identify initiatives that are appropriate for the particular issues or sectors. Such initiatives may include cooperation on regulatory issues, such as unilateral recognition or harmonisation of technical regulations and standards, alignment to international standards, reliance on a supplier’s declaration of conformity, and use of accreditations to qualify conformity assessment bodies.
2. At the request of the other Party, each Party shall encourage non- governmental bodies in its territory to cooperate with the non-governmental bodies in the territory of the other Party with respect to particular standards or conformity assessment procedures.
Article 6.5. Conformity Assessment Procedures
1. The Parties recognise that a broad range of mechanisms exists to facilitate the acceptance of conformity assessment results, including:
(a) the importing Party’s reliance on a supplier’s declaration of conformity;
(b) voluntary arrangements between conformity assessment bodies from each Party’s territory;
(c) agreements on mutual acceptance of the results or certification of conformity assessment procedures with respect to specified regulations conducted by bodies located in the territory of the other Party;
(d) accreditation procedures for qualifying conformity assessment bodies;
(e) government designation of conformity assessment bodies; and
(f) recognition by one Party of the results of conformity assessment procedures performed in the other Party’s territory on a unilateral basis for a sector nominated by that Party.
2. To this end, the Parties shall intensify their exchange of information on the variety of mechanisms to facilitate the acceptance of conformity assessment results or certification.
3. Where a Party does not accept the results of a conformity assessment procedure performed in the territory of the other Party, it shall, on request of the other Party, explain its reasons.
4. Each Party shall accredit, approve, license, or otherwise recognise conformity assessment bodies in the territory of the other Party on terms no less favourable than those it accords to conformity assessment bodies in its territory. If a Party accredits, approves, licenses, or otherwise recognises a body assessing conformity with a particular technical regulation or standard in its territory and it refuses to accredit, approve, license, or otherwise recognise a body assessing conformity with that technical regulation or standard in the territory of the other Party, it shall, on request, explain the reasons for its refusal.
5. Where a Party declines a request from the other Party to engage in or conclude negotiations to reach agreement on facilitating recognition in its territory of the results of conformity assessment procedures conducted by bodies in the territory of the other Party, it shall, on request, explain its reasons. The Parties may agree to further engagement, including through the possible establishment of an ad hoc working group, as provided for in Article 17.1 (Administrative Commission of the Agreement)
Article 6.6. Equivalence of Standards and Technical Regulations
1. Each Party shall give favourable consideration to accepting as equivalent the standards and technical regulations of the other Party, even if they differ from its own standards and technical regulations, provided that the said standards and technical regulations produce the outcomes equivalent to those produced by its own standards and technical regulations, with both meeting the legitimate objective or achieve the same level of protection.
2. Where a Party does not accept a standard and technical regulation of the other Party as equivalent to its own standard and technical regulation, it shall, at the request of the other Party, explain the reasons for not accepting the said standard and regulation as equivalent. The Parties may agree to further engagement on accepting equivalence of particular standard and technical regulations, including through the possible establishment of an ad hoc working group, as provided for in Article 17.1 (Administrative Commission of the Agreement).
3. No Party may have recourse to the provisions for Dispute Settlement under Chapter 15 (Dispute Settlement) of this Agreement for any matter related to this Chapter.
Article 6.7. Information Exchange
Each Party shall respond expeditiously to any enquiry from the other Party on standards, technical regulations or conformity assessment procedures relating to any good and / or assessments of manufacturers or manufacturing processes of goods traded between the Parties. Any information or explanation that is provided shall be given in print or electronically.
Article 6.8. Confidentiality
1. Nothing in this Chapter shall be construed to require either Party to furnish or allow access to information the disclosure of which it considers would:
(a) be contrary to its essential security interests;
(b) be contrary to the public interest as determined by its domestic laws, regulations and administrative provisions;
(c) be contrary to any of its domestic laws, regulations and administrative provisions including but not limited to those protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
(d) impede law enforcement; or
(e) prejudice legitimate commercial interests of particular public or private enterprises.
2. In pursuance to Articles 6.5, 6.6, 6.7 and 6.9, a Party shall, in accordance with its applicable laws, protect the confidentiality of any proprietary information disclosed to it.
Article 6.9. Coordinators
1. To facilitate the implementation of this Chapter and cooperation between the Parties, each Party shall designate a Coordinator, who shall be responsible for coordinating with interested persons in the Party’s territory and communicating with the other Party’s Coordinator in all matters pertaining to this Chapter. The Coordinators’ functions shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) promptly addressing any issue that a Party raises related to the development, adoption, application, or enforcement of standards, technical regulations or conformity assessment procedures;
(c) enhancing cooperation in the development and improvement of standards, technical regulations, and conformity assessment procedures;
(d) exchanging information on standards, technical regulations, and conformity assessment procedures, in response to all reasonable requests for such information from a Party;
(e) considering and facilitating any sector-specific proposal a Party makes for further cooperation among governmental and non- governmental conformity assessment bodies;
(f) facilitating the consideration of a request by a Party for the recognition of the results of conformity assessment procedures, including a request for the negotiation of an agreement, in a sector nominated by that Party;
(g) facilitating cooperation in the areas of specific technical regulations by referring enquiries from a Party to the appropriate regulatory authorities;
(h) promptly consulting on any matter arising under this Chapter upon request by a Party; and
(i) 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.
3. The Coordinators shall normally carry out their functions through agreed communication channels such as telephone, facsimile, emails, whichever is most expedient in the discharge of their functions.
Article 6.10. Final Provisions
1. Nothing in this Chapter shall limit the authority of a Party to determine the level of protection it considers necessary for the protection of, inter alia, human health or safety, animal or plant life or health or the environment. In pursuance of this, each Party retains all authority to interpret its laws, regulations and administrative provisions.
2. For the purposes of Article 6.9, the Coordinator for:
(a) Panama shall be:
Ministry of Trade and Industries
Edison Plaza, Ave, Ricardo J. Alfaro, El Paical, 2nd Floor Panama, Republic of Panama
Tel: (507) 360-0690
Fax: (507) 360-0691
Email: admtratados@mici.gob.pa
(b) Singapore shall be:
Ministry of Trade and Industry,
Trade Division,
100 High Street # 09-01, The Treasury, Singapore 179434, Republic of Singapore Tel: (65) 6225 9911
Fax: (65) 6332 7260
Email: mti_fta@mti.gov.sg
or their successors or designated contact points.
Chapter 7. COMPETITION POLICY
Article 7.1. Anti-competitive Business Conduct
1. Each Party shall endeavour to adopt or maintain competition laws to proscribe anti-competitive business conduct, with the objective of promoting economic efficiency and consumer welfare, and shall take appropriate action with respect to such conduct. The Parties recognize that undertaking these obligations will enhance the fulfilment of the objectives of this Agreement. Anti-competitive business conduct includes, but is not limited to:
(a) anti-competitive horizontal arrangements between competitors;
(b) misuse of market power, including predatory pricing by businesses;
(c) anti-competitive vertical arrangements between businesses; and
(d) anti-competitive mergers and acquisitions.
2. Each Party shall maintain an authority responsible for the enforcement of its national competition laws. The enforcement policy of each Party’s national competition authority is not to discriminate on the basis of the nationality of the subjects of their proceedings. Each Party shall ensure that:
(a) before it imposes a sanction or remedy against any person for violating its competition law, it affords the person the opportunity to be heard and to present evidence, within a reasonable time; and
(b) a domestic court or tribunal, at the person’s request, reviews any such sanction or remedy.
3. Nothing in this Chapter shall be construed to infringe each Party’s autonomy in developing its competition policies or in deciding how to enforce its competition laws.
4. The Parties shall ensure the application of the principles of non- discrimination, transparency and due process to the competition measures adopted or maintained according to paragraph 1 and to each Party’s laws and their enforcement.
Article 7.2. Confidentiality
1. Nothing in this Chapter shall require the provision of information that is:
(a) classified as confidential by a Party or its competition authority; or
(b) contrary to a Party’s laws or policies.
2. Each Party shall, subject to its laws or policies, maintain the confidentiality of any information communicated to it in confidence by the other Party and oppose any application for disclosure of such information. Any information communicated shall only be used for the purpose of the enforcement action for which it was communicated.
Article 7.3. Cooperation
The Parties agree to cooperate in the area of competition law and policy development by establishing consultation mechanisms and exchanging information. The Parties recognise the importance of cooperation and coordination in order to further effective competition law and policy development in the free trade area, in a manner consistent with their domestic laws, by establishing consultation mechanisms and exchanging information.
Article 7.4. Transparency and Information Requests
1. The Parties recognize the value of transparency in government competition policies.
2. On request, each Party shall make available to the other Party, public information concerning its competition law enforcement activities.
3. On request, each Party shall make available to the other Party public information concerning exemptions provided under its competition laws. Requests shall specify the particular goods and markets of interest and include an indication whether or not the exemption restricts trade or investment between the Parties.
Article 7.5. Consultations
To foster understanding between the Parties, or to address specific matters that arise under this Chapter, a Party shall, on request of the other Party, enter into consultations. In its request, the requesting Party shall indicate, if relevant, how the matter affects trade or investment between the Parties. The requested Party shall accord full and sympathetic consideration to the concerns of the other Party.
Article 7.6. Disputes
No Party may have recourse to the provisions for Dispute Settlement under Chapter 15 (Dispute Settlement) of this Agreement for any matter related to this Chapter.
Chapter 8. GOVERNMENT PROCUREMENT
Article 8.1. General
1. The Parties agree to establish a single government procurement market, in order to maximize competitive opportunities for their suppliers and reduce costs of doing business for both government and the private sectors;
2. This shall be achieved by the Parties through:
(a) ensuring the opportunity exists for their suppliers to compete on an equal and transparent basis for government procurements;
(b) ensuring the non-application against their suppliers of preferential schemes and other forms of discrimination based on the place of origin of goods and services;
(c) promoting the use of electronic means for government procurement; and
(d) ensuring fair and non-discriminatory processes, and mechanisms to eliminate any potential conflict of interest between persons administering the processes and suppliers participating in the processes.
3. In the event that a Party makes commitments under agreements
relating to government procurement, which both are parties to, which are more favourable to the other Party than the commitments made under Annex 8A, the more favourable offer shall immediately and unconditionally apply.
Article 8.2. Scope and Coverage
1. This Chapter applies to any law, regulation, procedure or practice regarding any procurement by entities covered by this Chapter as specified in Annex 8A.
2. This Chapter applies to procurement by any contractual means, including through methods such as purchase or lease, rental or hire purchase, with or without an option to buy, of goods or services, or any combination of goods and services.
3. No entity shall require institutions not included in Annex 8A to award contracts with the intent of avoiding the obligations of this Chapter.
4. This Chapter applies to any procurement contract of a value of not less than the relevant threshold specified in Annex 8A.
5. This Chapter does not apply to:
(a) non-contractual agreements or any form of governmental assistance, including cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and governmental provision of products and services to persons or governmental authorities not specifically covered under Annex 8A;
(b) purchases funded by loans and grants made to a Party or to an entity of a Party by a person, international entities, associations, international organizations or other States or foreign governments, to the extent that the conditions of such assistance are inconsistent with the provisions of this Chapter. In the case of such inconsistency, the conditions of the assistance shall prevail;
(c) acquisition of fiscal agency services or depository services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt;
(d) hiring of government employees and related employment measures; and
(e) purchases made under exceptionally advantageous conditions which only arise in the very short term. This provision is:
(i) intended to cover unusual disposals by companies which are not normally suppliers, or disposal of assets of businesses in liquidation or receivership; and
(ii) not intended to cover routine purchases from regular suppliers.
6. No entity may prepare, design or otherwise structure or divide, at any
stage of the procurement, any procurement with the intent of avoiding the obligations of this Chapter.
7. The provisions of this Chapter do not affect the rights and obligations provided for in Chapters 2 (Trade in Goods), 3 (Rules of Origin), 9 (Investment), 10 (Cross-Border Trade in Services) and 11 (Financial Services).
8. Nothing in this Chapter shall prevent either Party from modifying its procurement policies, procedures or contractual means, provided they are not inconsistent with this Chapter.
Article 8.3. National Treatment and Non-Discrimination
1. With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Chapter, each Party shall provide immediately and unconditionally to the goods, services and suppliers of the other Party offering such goods and services, treatment no less favourable than that accorded to domestic goods, services and suppliers.
2. With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Chapter, each Party shall ensure that its entities shall not:
(a) treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; and
(b) discriminate against a locally established supplier on the basis that that the good or services offered by that supplier are goods or services of the other Party.
3. The provisions of paragraphs 1 and 2 shall not apply to customs duties and charges of any kind imposed on or in connection with importation, the method of levying such duties and charges, other import regulations and formalities, and measures affecting trade in services other than laws, regulations, procedures and practices regarding government procurement covered by this Chapter.
Article 8.4. Valuation of Contracts
The following provisions shall apply in determining the value of contracts for purposes of implementing this Chapter:
(a) valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable;
(b) the selection of a valuation method by a government body shall not be made, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Chapter; and
(c) in cases where an intended procurement includes option clauses, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of optional purchases.
Article 8.5. Rules of Origin
A Party shall not apply rules of origin to goods supplied for purposes of government procurement covered by this Chapter from the other Party, which are different from the rules of origin applied in the normal course of trade and at the time of the transaction in question to supplies of the same goods from that other Party.
Article 8.6. Offsets
Entities shall not, in the course of a procurement, impose, seek or consider offsets.
Article 8.7. Publication of Procurement Measures
1. Each Party shall promptly publish any law and regulation and the modifications thereof, and make publicly available any judicial decision and administrative ruling of general application and procedure specifically governing procurement covered by this Chapter in publicly accessible media.
2. Upon the request of a Party, the other Party will provide a copy of a judicial decision or administrative ruling of general application and procedure relating to procurement.
Article 8.8. Publication of Notice of Intended Procurement
1. Except as otherwise provided for in Article 8.13 (Limited Tendering Procedures), procuring entities shall publish a notice inviting interested suppliers to submit tenders for each procurement covered by this Chapter. This notice shall be published in publicly accessible media and made accessible during the entire period established for tendering for the relevant procurement.
2. Each notice of intended procurement shall include a description of the intended procurement, any conditions that suppliers must fulfill to participate in the procurement, the name of the entity issuing the notice, the address where suppliers may obtain all documents relating to the procurement, the time limits and address for submission of tenders and the delivery dates of the goods or services to be procured.
Article 8.9. Time Limits for the Tendering Processes
1. An entity shall prescribe time limits for the tendering process that allows sufficient time for suppliers to prepare and submit responsive tenders, taking into account the nature and complexity of the procurement. An entity shall provide no less than 30 days between the date on which it publishes the notice of intended procurement and the deadline for submitting tenders.
2. Notwithstanding paragraph 1, an entity may establish a time period of less than 30 days, provided that the time period is sufficiently long to enable suppliers to prepare and submit responsive tenders and shall in no case be less than five working days, where the procurement is published by the entity by electronic means.
Article 8.10. Tender Documentation
1. An entity shall provide interested suppliers with tender documentation that includes all the information necessary to permit suppliers to prepare and submit responsive tenders. The documentation shall include all the criteria that the entity will consider in awarding the contract, including all cost factors, and the weights or, where appropriate, the relative values that the entity will assign to these criteria in evaluating tenders.
2. An entity shall endeavour to make available relevant tender documentation on the internet or a comparable publicly available computer- based telecommunications network openly accessible to all suppliers. Where an entity does not publish all the tender documentation by electronic means, the entity shall, on request of a supplier, promptly make the documentation available in written form to the supplier.
3. Where an entity, during the course of a procurement, modifies the criteria referred to in paragraph 1, it shall transmit all such modifications in writing or by electronic means:
(a) to all suppliers that are participating in the procurement at the time the criteria was modified, if the identities of such suppliers are known, and in all other cases, in the same manner the original information was transmitted; and
(b) in adequate time to allow such suppliers to modify and re-submit their tenders, as appropriate.
Article 8.11. Technical Specifications
1. Technical specifications laying down the characteristics of the goods or services to be procured shall not be prepared, adopted or applied with a view to, or with the effect of creating unnecessary obstacles to trade among the Parties.
2. Technical specifications prescribed by an entity shall, where appropriate, be:
(a) in terms of performance requirements rather than design or descriptive characteristics; and
(b) based on international standards, where applicable; otherwise, on recognised national standards.
3. There shall be no requirement or reference to a particular trademark or trade name, patent, design or type, specific origin or producer or supplier unless there is no sufficiently precise or intelligible way of otherwise describing the procurement requirements and provided that, in such cases, words such as “or equivalent” are included in the tender documentation.
4. Entities shall not seek or accept, in a manner that would have the effect of precluding competition, advice that may be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in that procurement.
Article 8.12. Registration and Qualification of Suppliers
1. In the process of registering and / or qualifying suppliers, the entities of a Party shall not discriminate between domestic suppliers and suppliers of the other Party.
2. Any conditions for participation in open tendering procedures shall be no less favourable to suppliers of the other Party than to domestic suppliers.