(b) conditions and qualifications on national treatment.
2. Measures inconsistent with both Articles 10.3 and 10.4 are inscribed in the column relating to Article 10.3. In this case, the inscription is considered to provide a condition or qualification to Article 10.4 as well.
Article 10.6. Regulatory Transparency
1. Each Party shall ensure that measures of general application adopted or maintained by a Party are promptly published or otherwise made publicly available. (18)
2. Each Party shall, to the extent practicable, provide in advance to interested persons any measure of general application that the Party proposes to adopt, in order to allow an opportunity for such persons to comment on the measure.
3. Each Party's appropriate financial regulatory authority shall make available to interested persons its requirements for completing applications relating to the supply of financial services.
4. On the request of an applicant in writing, the appropriate financial regulatory authority shall inform the applicant of the status of its application. If such authority requires additional information from the applicant, it shall notify the applicant without undue delay.
5. Each Party shall make its best endeavour to implement and apply in its territory internationally agreed standards for regulation and supervision in the financial services sector.
Article 10.7. Data Processing In the Financial Services Sector
1. In sectors where specific commitments are undertaken, each Party shall permit a financial service supplier of the other Party to transfer information in electronic or other forms, into and out of its territory, for data processing where such processing is required in the ordinary course of business of such financial service supplier.
2. Nothing in paragraph 1 shall:
(a) restrict the right of a Party to protect personal data, personal privacy and the confidentiality of individual records and accounts including in accordance with its domestic laws and regulations so long as such right shall not be used as a means of avoiding the Party's commitments or obligations under this Agreement;
(b) prevent a regulator of a Party for regulatory or prudential reasons from requiring a financial service supplier in its territory to comply with domestic regulation in relation to data management and storage, and system maintenance, as well as to retain within its territory copies of records; or
(c) be construed to require a Party to allow the cross-border supply or the consumption abroad of services in relation to which it has not made specific commitments including to allow non-resident suppliers of financial services to supply, as a principal, through an intermediary or as an intermediary, the provision and transfer of financial information and financial data processing as referred to in subparagraph (o) of Article 10.1.
Article 10.8. Confidential Information
Nothing in this Chapter shall:
(a) require any of the Parties to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular juridical persons, whether public or private; and
(b) be construed to require a Party to disclose information relating to the financial affairs and accounts of individual customers, or any confidential or proprietary information in the possession of public entities.
Article 10.9. Prudential Carve-out
Nothing in this Agreement shall prevent a Party from adopting or maintaining measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial services supplier, or to ensure the integrity, soundness and stability of the financial system. Where such measures do not conform with the provisions of this Chapter, they shall not be used as a means of avoiding the Party's commitments or obligations under this Chapter.
Article 10.10. Recognition
1. A Party may recognise prudential measures of the other Party in determining how the Party's measures relating to financial services shall be applied. Such recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement or may be accorded autonomously.
2. A Party that is a party to an agreement or arrangement with a third party such as those referred to in paragraph 1, whether future or existing, shall afford adequate opportunity for the other Party to negotiate its accession to such agreement or arrangement, or to negotiate comparable ones with it, under circumstances in which there would be equivalent regulation, oversight, implementation of such regulation, and, if appropriate, procedures concerning the sharing of information between the Parties to the agreement or arrangement. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that such circumstances exist.
Article 10.11. Committee on Financial Services
1. The Parties hereby establish a Committee on Financial Services (hereinafter referred to as "the Committee"). The Committee shall be composed of representatives of the Parties. The principal representative of each Party shall be an official of the Party's Ministry of Finance or authorities designated by the Ministry of Finance.
2. The functions of the Committee shall include supervising the implementation of this Chapter and considering issues regarding financial services that are referred to it by a Party.
3. The Committee shall meet upon request of a Party on a date and with an agenda agreed in advance by both Parties.
Article 10.12. Consultations
1. A Party may request consultations with the other Party regarding any matter arising under this Chapter. The other Party shall give sympathetic consideration to the request. The Parties shall report the results of their consultations to the Committee.
2. Consultations under this Article shall include officials of the authorities specified in Annex I.
3. Nothing in this Article shall be construed to require financial authorities participating in consultations to disclose information or take any action that would interfere with individual regulatory, supervisory, administrative or enforcement matters.
4. Where a financial authority of a Party requires information for supervisory purposes concerning a financial service supplier in the other Party's territory, such financial authority may approach the competent financial authority in the other Party's territory to seek the information. The provision of such information may be subject to the terms, conditions and limitations contained in the other Party's relevant law or to the requirement of a prior agreement or arrangement between the respective financial authorities.
Article 10.13. Specific Provisions on Dispute Settlement
1. Except as otherwise provided in this Article, any disputes under this Chapter shall be settled in accordance with the provisions of Chapter 14 (Dispute Settlement).
2. Consultations held under Article 10.12 shall be deemed to constitute the consultations referred to in Article 14.3 (Consultations), unless the Parties otherwise agree. If the matter has not been resolved within sixty (60) days after the starting date of the consultations under Article 10.12 or ninety (90) days after the receipt of the request for consultations under Article 10.12.1, whichever is earlier, the complaining Party may request in writing the establishment of an arbitral panel. The Parties shall report the results of their consultations directly to the Commission.
3. Arbitrators of arbitral panels constituted for disputes arising under this Chapter shall meet the requirements set out in Article 14.7 (Composition of Arbitral Panels) and shall also have expertise or experience in financial services law or practice, which may include the regulation of financial institutions.
4. Consistent with Article 14.14 (Non-Implementation - Compensation and Suspension of Concessions or other Obligations), in any dispute where an arbitral panel finds a measure to be inconsistent with the obligations of this Agreement and the measure affects:
(a) only the financial services sector, the complaining Party may suspend benefits only in the financial services sector;
(b) the financial services sector and any other sector, the complaining Party may suspend benefits in the financial services sector to the same extent that such measure have an effect on the Party's financial services sector; or
(c) only a sector other than the financial services sector, the complaining Party may not suspend benefits in the financial services sector.
Chapter 11. Economic Cooperation
Article 11.1. General Objectives
1. The Parties agree to establish a framework for collaborative activities as a means to expand and enhance the benefits of this Agreement for building a strategic economic partnership.
2. The Parties will establish close cooperation aimed, inter alia, at:
(a) strengthening and building on existing cooperative relationships between the Parties, including a focus on promoting economic and social development, fostering innovation and encouraging research and development;
(b) creating new opportunities for trade and investment, promoting competitiveness and innovation;
(c) supporting the important role of the private sector in promoting and building strategic alliances to encourage mutual economic growth and development;
(d) encouraging the presence of the Parties and their goods and services in their respective markets of Asia Pacific and Latin America;
(e) reinforce and expand cooperation, collaboration and mutual exchange in the cultural and educational areas; and
(f) increasing the level of and deepening cooperation activities between the Parties in areas of mutual interest.
Article 11.2. Scope
1. The Parties affirm the importance of all forms of cooperation, including, but not limited to, the fields of cooperation enlisted in Article 11.3 and any other fields that the Parties agree or include.
2. Cooperation between the Parties should contribute to achieving the objectives of this Agreement through the identification and development of innovative cooperation programmes capable of providing added value to their relationships.
3. Cooperative activities will be agreed between the Parties and may include, though not limited to, those enlisted in Article 11.4
4. Cooperation between the Parties under this Chapter will complement the cooperation and cooperative activities between the Parties set out in other Chapters of this Agreement.
Article 11.3. Fields of Cooperation
Fields of cooperation and capacity building under this Chapter may include, among others:
(a) Trade and Investment Promotion;
(b) Science, Innovation, Research and Development;
(c) Agriculture, Aquaculture and Fishery, Food Industry and Forestry;
(d) Mining;
(e) Energy;
(f) Small and Medium-sized Enterprises;
(g) Tourism;
(h) Education, and Human Capital Development;
(i) Community Development and Cultural Cooperation;
(j) Trade-related Gender Issues;
(k) Logistics and International Transportation;
(l) Environment;
(m) Labour Issues;
(n) Government Procurement;
(o) Information and Communication Technology (ICT);
(p) E-commerce; and
(q) Geographical Indications.
Article 11.4. Activities of Cooperation
1. Areas and forms of cooperation under this Chapter shall be set forth in the implementing arrangements consistent with the objectives set in Article 11.1.
2. Parties will encourage and facilitate, as mutually agreed by both Parties, the following activities, including, but not limited to:
(a) exchange of people, information, documentation, experiences;
(b) cooperation in regional and multilateral fora;
(c) Direct cooperative activities;
(d) Technical assistance;
(e) Dialogues, conferences, seminars and training programmes with experts; and
(f) Any other activity the Cooperation Committee might define.
Article 11.5. Environmental Issues
1. Recognising the importance of strengthening capacity to promote sustainable development with their three (3) interdependent and mutually reinforcing components: economic growth, social development and environmental protection, the Parties agree to cooperate in the field of environment.
2. The Parties agree that it is inappropriate to set or use their environmental laws, regulations, policies and practices for trade protectionist purposes; as well as it is inappropriate to relax, or fail to enforce or administer, their environmental laws and regulations to encourage trade and investment.
3. Each Party shall endeavour to promote public awareness of its environmental laws, regulations, policies and practices domestically.
4. The Parties shall endeavour to cooperate in the field of the environment as mutually agreed by both Parties. The aim of cooperation will be the prevention and/or reduction of pollution and degradation of natural resources and ecosystems, and rational use of the latter; through developing and endorsing special programmes and projects dealing, inter alia, with the transfer of knowledge and technology.
5. Cooperation on environment may include:
(a) climate change;
(b) biodiversity and conservation of natural resources;
(c) management of hazardous chemicals;
(d) air quality;
(e) water management;
(f) waste management;
(g) marine and coastal ecological conservation and pollution control;
(h) strategic environmental impact assessment;
(i) Improvement of environmental awareness, including environmental education and public participation; and
(j) green technology.
6. New areas of cooperation may be developed through existing agreements and through appropriate implementing arrangements.
7. In order to facilitate communication for purposes of this Article, each Party will designate a contact point no later than six (6) months from the date of entry into force of this Agreement. Each Party will notify the other Party promptly of any change of contact point.
Article 11.6. Labour Issues
1. In accordance with Article 11.3 the Parties hereby reaffirm their commitment to establish cooperation on labour.
2. Parties will cooperate on labour and employment-related matters in the areas of mutual interest and benefit, which may include, but not limited to promotion of decent work, labour policies, best practices of the labour systems, the development and management of human capital for enhanced employability, business excellence and greater productivity for the benefit of workers and employers.
3. The cooperation will be carried out through mutually agreed activities, which may include exchanges of information and expertise, and joint organisation of seminars, workshops and meetings for experts, regulatory authorities and other persons concerned.
4. The Parties recognise that it is inappropriate to encourage trade or investment by weakening or reducing the protections afforded in domestic labour laws.
5. In order to facilitate communication for purposes of this Article, each Party will designate a contact point no later than six (6) months from the date of entry into force of this Agreement. Each Party will notify the other Party promptly of any change of contact point.
Article 11.7. Electronic Commerce
1. Recognizing the global nature of electronic commerce, the Parties shall endeavour to:
(a) work together to assist small and medium enterprises to overcome obstacles encountered in its use;
(b) exchange information and share experiences on regulations, policies, enforcement and compliance regarding electronic commerce, including:
(i) Personal data protection;
(ii) online consumer protection including means for consumer redress and building consumer confidence;
(iii) unsolicited commercial electronic messages;
(iv) security in electronic communications;
(v) authentication; and
(vi) e-government;
(c) participate actively in regional and multilateral fora to promote the development of electronic commerce;
(d) encourage development by the private sector of methods of selfregulation that foster electronic commerce, including codes of conduct, model contracts, guidelines and enforcement mechanisms;
(e) encourage interoperability of electronic authentication and digital certificates in the business and government sectors, work towards the mutual recognition of digital certificates at government level, based on internationally accepted standards, and maintain domestic legislation for electronic authentication that:
(i) permits parties to electronic transactions to determine the appropriate authentication technologies and implementation models for their electronic transactions, without limiting the recognition of such technologies and implementation models; and
(ii) permits parties to electronic transactions to have the opportunity to prove in court that their electronic transactions comply with any legal requirements;
(f) facilitate cross-border electronic transactions and paperless trading:
(i) each Party shall accept the electronic format of trade administration documents as the legal equivalent of paper documents except where:
- There is a domestic or international legal requirement to the contrary; or
- Doing so would reduce the effectiveness of the trade administration process; and
(ii) the Parties shall cooperate bilaterally and in international fora to enhance acceptance of electronic versions of trade administration documents;
(g) encourage cooperation in research and training that would enhance the development of electronic commerce including by sharing best practices on electronic commerce development;
(h) encourage development of domestic frameworks which are compatible with evolving international norms and standards;
(i) provide an environment which promotes trust and confidence among electronic commerce participants;
(j) take appropriate measures and take into account international standards on personal data protection:
(i) notwithstanding the differences in existing systems for personal data protection in the territories of the Parties, each Party shall take such measures as it considers appropriate and necessary to protect the personal data of users of electronic commerce; and
(ii) in the development of data protection standards, each Party shall, to the extent possible, take into account international standards and the criteria of relevant international organizations; and
(k) provide protection for consumers using electronic commerce that is at least equivalent to that provided for consumers of other forms of commerce under their respective laws, regulations, and policies, to the extent possible and in a manner considered appropriate by each Party.
2. In order to facilitate communication for purposes of this Article, each Party will designate a contact point no later than six (6) months from the date of entry into force of this Agreement. Each Party will notify the other Party promptly of any change of contact point.
Article 11.8. Government Procurement
1. The Parties recognise the importance of government procurement to their economies.
2. The Parties shall endeavour to promote transparency, value for money, open and effective competition, fair dealing, accountability and due process, and nondiscrimination in their government procurement procedures.
3. The Parties will cooperate on government procurement-related matters in the areas of mutual interest and benefit.
4. The cooperation will be carried out through mutually agreed activities, which may include the exchange of information on their respective laws and regulations, policies and practices on government procurement, as well as on any reforms to their existing government procurement regimes.
5. For the purposes of this Article, the Parties hereby establish a Working Group on Government Procurement. This Working Group shall report to the Commission on the outcomes of its discussions.
Article 11.9. Geographical Indications (27)
1. Each Party shall ensure, in accordance with its laws and regulations and in conformity with the WTO TRIPS Agreement, protection of geographical indications with regard to any goods. Each Party shall accept applications without the requirement for intercession by a Party on behalf of its persons.
2. The Parties shall cooperate to exchange views on issues relating to protection of geographical indications, including any strengthening of such protection.
3. The terms listed in Annex 11.9 are geographical indications of Chile and Thailand, within the meaning of paragraph 1 of Article 22 of the WTO TRIPS Agreement (28).
4. At the request of a Party, the Commission may decide to add or remove geographical indications from Annex 11.9.
5. In the case of homonymous geographical indications, each Party shall determine the practical conditions under which the homonymous indications in question will be differentiated from each other, subject to respective domestic laws and regulations of each Party.