Article 85. Restrictions to Safeguard the Balance of Payments
1. 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 on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.
2. The restrictions referred to in paragraph 1:
(a) shall ensure that the other Party is treated as favourably as any non-Party;
(b) shall be consistent with the Articles of Agreement of the International Monetary Fund, as may be amended;
(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 1; and
(e) shall be temporary and be phased out progressively as the situation specified in paragraph 1 improves.
3. In determining the incidence of such restrictions, a Party may give priority to the supply of services which are more essential to its economic or development programmes. However, such restrictions shall not be adopted or maintained for the purposes of protecting a particular service sector.
4, Any restrictions adopted or maintained under paragraph 1, or any changes therein, shall be promptly notified to the other Party.
5. Where a Party has adopted restrictions pursuant to paragraph 1, that Party shall, upon request, commence consultations with the other Party promptly in order to review the restrictions adopted by the former Party.
Article 86. Denial of Benefits
1. A Party may deny the benefits of this Chapter to a service supplier of the other Party, where the denying Party establishes that the service is being supplied by a juridical person that is owned or controlled by persons of a non-Party, and that denying Party:
(a) does not maintain diplomatic relations with the non-Party; or
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions with the juridical person or that would be violated or circumvented if the benefits of this Chapter were accorded to the juridical person.
2. Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to a service supplier of the other Party, where the denying Party establishes that the service is being supplied by a juridical person that is owned or controlled by persons of a non-Party and that has no substantive business operations in the Area of the other Party.
Article 87. Sub-committee on Trade In Services
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Trade in Services (hereinafter referred to in this Article as "Sub-Committee") shall be established on the date of entry into force of this Agreement.
2. The functions of the Sub-Committee shall be:
(a) reviewing commitments, with respect to measures affecting trade in services in this Chapter, with a view to achieving further liberalisation on a mutually advantageous basis and securing an overall balance of rights and obligations;
(b) reviewing the implementation and operation of this Chapter;
(c) reporting the outcome of discussions of the Sub- Committee to the Joint Committee; and
(d) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 11.
3. The Sub-Committee shall be:
(a) composed of representatives of the Governments of the Parties; and
(b) co-chaired by officials of the Governments of the Parties.
4. The Sub-Committee may invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed.
5. The Sub-Committee may hold its inaugural meeting within two years from the date of entry into force of this Agreement. The subsequent meeting of the Sub-Committee shall be held at such frequency as the Parties may agree upon.
Article 88. Review of Commitments
1. The Parties shall review commitments on trade in services with the first review within two years from the date of entry into force of this Agreement, with the aim of improving the overall commitments undertaken by the Parties under this Agreement.
2. In reviewing the commitments in accordance with paragraph 1, the Parties shall take into account paragraph 1 of Article IV of the GATS.
Chapter 7. Energy
Article 89. Basic Principle
The Parties recognise the importance of strengthening stable and mutually beneficial relationship in the energy sector.
Article 90. Definitions
For the purposes of this Chapter:
(a) "energy good" means any good classified in subheading 2709.00, 2711.11 and 2711.21 of the Harmonized System;
(b) "energy regulatory bodies" means governmental bodies or state enterprises that regulate and control the exploration, exploitation, production, operation, transportation, transmission or distribution, purchase or sale of an energy good; and
Note: For the purposes of this subparagraph, in the case of Brunei Darussalam, "state enterprise" means the Brunei National Petroleum Company Sendirian Berhad.
(c) "energy regulatory measure" means any measure by energy regulatory bodies that directly affects an activity in the energy sector.
Article 91. Import and Export Restrictions
1. In the application of any prohibition or restriction on the importation or exportation of energy goods, each Party shall give due consideration to contractual relationships and implement such prohibition or restriction in an orderly, fair and equitable manner.
2. When introducing any new prohibition or restriction on the importation or exportation of energy goods, each Party shall give to the other Party written notice thereof, wherever possible prior to the introduction of such prohibition or restriction or, if not, as soon as possible thereafter, providing relevant information, where available, concerning the procedure of the prohibition or restriction, statistics on importation, exportation and domestic demand of the energy goods and hold, upon the request of the other Party, consultation with the other Party on such prohibition or restriction. Each Party shall accord sympathetic consideration to views presented by the other Party in the course of such consultation.
Article 92. Energy Regulatory Measures
1. Each Party shall seek to ensure that, in the application of any energy regulatory measure, energy regulatory bodies of the Party minimise adverse effects upon contractual relationships and implement such measure in an orderly, fair and equitable manner.
2. If energy regulatory bodies of a Party adopt any new energy regulatory measure and where such measure may have substantial effects on contractual relationships, the Party shall give written notice to the other Party of such measure, where possible prior to the effective date of the measure or, if not, as soon as possible thereafter.
3. Where energy regulatory bodies of a Party adopt any new energy regulatory measure under paragraph 2 that substantially affects the transportation, transmission or distribution, purchase or sale of an energy good, the Party shall hold, upon the request of the other Party, consultation with the other Party. Each Party shall accord sympathetic consideration to views presented by the other Party in the course of such consultation.
Note: For the purposes of this paragraph, an energy regulatory measure taken by energy regulatory bodies of a Party with respect to the liquefaction and re-â gasification of goods classified in subheading 2711.21 of the Harmonized System shall be considered as an energy regulatory measure that substantially affects the transportation, transmission or distribution, purchase or sale of such goods.
Article 93. Environmental Aspects
1. In pursuit of sustainable development and taking into account its obligations under those international agreements concerning environment to which it is a party, each Party shall endeavour to minimise, in accordance with its applicable laws and regulations, in an economically efficient manner, harmful environmental impacts of all activities related to energy in its Area.
2. Each Party shall:
(a) take account of environmental considerations throughout the process of formulation and implementation of its policy on energy;
(b) encourage favourable conditions for the transfer and dissemination of technologies that contribute to the protection of environment, consistent with the adequate and effective protection of intellectual property rights; and
(c) promote public awareness of environmental impacts of activities related to energy and of the scope for and the costs associated with the prevention or abatement of such impacts.
Article 94. Cooperation
1. The Parties shall, in accordance with their respective laws and regulations, promote cooperation under this Chapter for strengthening stable and mutually beneficial relationship in the energy sector. For this purpose, the Parties shall cooperate and, where necessary and appropriate, encourage and facilitate cooperation between their relevant entities in the private sector in the energy sector.
2. The Parties shall endeavour to make available the necessary funds and other resources for the implementation of cooperation under this Article in accordance with their respective laws and regulations.
3. (a) Areas of cooperation under this Article may include:
(i) policy development;
(ii) human resource development;
(iii) technological development; and
(iv) other areas of cooperation to be mutually agreed by the Parties.
(b) Forms of cooperation under this Article shall be set forth in the Implementing Agreement.
4. Costs of cooperation under this Article shall be borne in such manner to be mutually agreed by the Parties.
5. The dispute settlement procedures provided for in Chapter 10 shall not apply to this Article.
Article 95. Sub-committee on Energy
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Energy (hereinafter referred to in this Article as "Sub-Committee") shall be established on the date of entry into force of this Agreement.
2. The functions of the Sub-Committee shall be:
(a) reviewing and monitoring the implementation and operation of this Chapter;
(b) exchanging information on any matters related to this Chapter;
(c) discussing any issues related to this Chapter, including the interpretation and application of this Chapter;
(d) reporting the findings of the Sub-Committee and, where appropriate, making recommendations, to the Joint Committee; and
(e) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 11.
3. The Sub-Committee shall be:
(a) composed of representatives of the Governments of the Parties; and
(b) co-chaired by officials of the Governments of the Parties.
4. The Sub-Committee may invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed.
5. The Sub-Committee shall meet at such venues and times as may be agreed by the Parties.
Chapter 8. Improvement of Business Environment
Article 96. Basic Principles
1. Each Party shall, in accordance with its laws and regulations, take appropriate measures to further improve the business environment for the benefit of the enterprises of the other Party conducting their business activities in the former Party.
2. The Parties shall, in accordance with their respective laws and regulations, promote cooperation to further improve the business environment in the respective Parties.
Article 97. Intellectual Property
Each Party, recognising the importance of protecting intellectual property in further improving the business environment in the Party, shall:
(a) endeavour to improve its intellectual property protection system;
(b) comply with the obligations set out in the international agreements relating to intellectual property to which it is a party;
(c) endeavour to become a party to international agreements relating to intellectual property to which it is not a party;
(d) endeavour to ensure transparent and streamlined administrative procedures concerning intellectual property;
(e) endeavour to ensure adequate and effective enforcement of intellectual property rights; and
(f) endeavour to further promote public awareness of protection of intellectual property.
Article 98. Government Procurement
Each Party, recognising the importance of enhancing liberalisation of its government procurement markets in further improving the business environment in the Party, shall endeavour to:
(a) accord most-favoured-nation treatment to goods, services and suppliers of the other Party;
(b) enhance transparency of the measures regarding government procurement; and
(c) implement in a fair and effective manner the measures regarding government procurement.
Article 99. Sub-committee on Improvement of Business Environment
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Improvement of Business Environment (hereinafter referred to in this Article as "Sub-Committee" shall be established on the date of entry into force of this Agreement.
2. The functions of the Sub-Committee shall be:
(a) addressing issues that the Sub-Committee considers appropriate in cooperation with other relevant sub-committee(s) with a view to avoiding unnecessary overlap with the works of such other relevant sub-committee (s);
(b) making, as needed, recommendations to the Parties on appropriate measures to be taken by the Parties;
(c) receiving information on the implementation of such recommendations from the relevant authorities of the Governments of the Parties;
(d) making public, as needed, such recommendations in an appropriate manner;
(e) reporting the findings of the Sub-Committee to the Joint Committee; and
(f) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 11.
3. The Sub-Committee shall be:
(a) composed of representatives of the Governments of the Parties; and
(b) co-chaired by officials of the Governments of the Parties.
4. The Sub-Committee may invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed.
5. The Sub-Committee shall meet at such venues and times as may be agreed by the Parties.
Article 100. Non-application of Chapter 10
The dispute settlement procedures provided for in Chapter 10 shall not apply to this Chapter.
Chapter 9. Cooperation
Article 101. Basic Principles
1. The Parties shall, in accordance with their respective laws and regulations, promote cooperation under this Agreement for their mutual benefits in order to liberalise and facilitate trade and investment between the Parties and to promote the well-being of the peoples of both Parties. For this purpose, the Parties shall cooperate and, where necessary and appropriate, encourage and facilitate cooperation between their respective entities in the private sector.
2. The main objective of this Chapter is to provide a framework for cooperation in order to:
(a) diversify economic relations between the Parties;
(b) strengthen economic competitiveness of the Parties;
(c) advance human resource development in the Parties;
(d) promote sustainable development in the Parties; and
(e) improve overall well-being of the peoples of both Parties.
Article 102. Fields of Cooperation
The fields of cooperation under this Chapter shall include:
(a) trade and investment promotion;
(b) small and medium enterprises;
(c) agriculture, forestry and fisheries;
(d) tourism;
(e) education and human resource development;
(f) information and communications technology;
(g) science and technology;
(h) environment;
(i) intellectual property;
(j) land transportation; and
(k) other fields to be mutually agreed upon by the Parties.
Article 103. Areas and Forms of Cooperation
Areas and forms of cooperation under this Chapter shall, as appropriate, be set forth in the Implementing Agreement.
Article 104. Costs of Cooperation
1. The Parties shall endeavour to make available the necessary funds and other resources for the implementation of cooperation under this Chapter in accordance with their respective laws and regulations.
2. Costs of cooperation under this Chapter shall be borne in such manner to be mutually agreed by the Parties.
Article 105. Sub-committee on Cooperation
1. For the purposes of the effective implementation and operation of this Chapter, a Sub-Committee on Cooperation (hereinafter referred to in this Article as "Sub-Committee") shall be established on the date of entry into force of this Agreement.
2. The functions of the Sub-Committee shall be:
(a) identifying and proposing priority fields for cooperation under this Chapter;
(b) reviewing, monitoring and facilitating the proper coordination for the implementation and operation of this Chapter;
(c) discussing any issues related to this Chapter;
(d) reporting the findings and the outcome of discussions of the Sub-Committee, and where necessary, making recommendations to the Joint Committee regarding issues relating to the implementation of this Chapter, including the measures to be taken by the Parties; and
(e) carrying out other functions as may be delegated by the Joint Committee in accordance with Article 11.
3. The Sub-Committee shall be:
(a) composed of representatives of the Governments of the Parties; and
(b) co-chaired by officials of the Governments of the Parties.
4, The Sub-Committee may invite representatives of relevant entities other than the Governments of the Parties with the necessary expertise relevant to the issues to be discussed.