8. If a Party requires authorisation for the supply of a service, the Party shall:
(a) promptly publish (9) information necessary for obtaining an authorisation. Where it exists, the information may include:
(i) the licensing and qualification requirements and procedures;
(ii) contact information of relevant competent authorities;
(iii) fees;
(iv) procedures for appeal or review of decisions concerning applications;
(v) indicative or fixed timeframes for processing applications; and
(vi) the length of authorisations, and where relevant, dates for renewal;
(b) endeavour to ensure that the information referred to in subparagraph (a) is easily accessible through electronic means, and to the extent practicable, is consolidated into a single online portal; and
(c) encourage its competent authorities to respond, to the extent practicable, to any reasonable request for information or assistance.
9. Each Party shall, to the extent practicable, avoid requiring an applicant to approach more than one competent authority for each application for authorisation for the supply of a service. If a service is within the jurisdiction of multiple competent authorities, multiple applications for authorisation may be required.
10. If a Party requires authorisation for the supply of a service, it shall ensure that its competent authorities:
(a) to the extent practicable, permit the submission of an application at any time throughout the year.(10) If a specific time period for applying exists, the Party shall ensure that its competent authorities allow a reasonable period of time for the submission of an application;
(b) endeavour to accept applications in electronic format under the equivalent conditions of authenticity as paper submissions; and endeavour to allow for the completion of any relevant authorisation procedures without the physical presence of the applicant in the territory of that Party;
(c) where they deem appropriate, accept copies of documents that are authenticated in accordance with its laws and regulations, in place of original documents;
(d) to the extent practicable, establish a fixed or indicative timeframe for the processing of an application;
(e) to the extent practicable, confirm in writing (11) that an application has been received;
(f) upon request of the applicant, provide without undue delay information concerning the status of the application;
(g) within a reasonable period of time after the submission of an application considered complete under its laws and regulations, ensure that the processing of the application is completed and the applicant is informed of the decision concerning the application, to the extent possible in writing; (12)
(h) if they consider an application incomplete for processing under the Party’s laws and regulations, within a reasonable period of time, to the extent practicable:
(i) inform the applicant that the application is incomplete;
(ii) upon request of the applicant, identify the additional information required to complete the application, or otherwise provide guidance on why the application is considered incomplete; and
(iii) provide the applicant with the opportunity (13) to correct deficiencies in the application; and
(i) if an application is rejected:
(i) inform the applicant of the decision within a reasonable period of time; and
(ii) to the extent practicable, either upon their own initiative or upon request of the applicant, provide the applicant with the reasons for rejection and with specific guidance to address the issues identified in order to obtain an authorisation The applicant will have the possibility of resubmitting, at its discretion, a new application.
11. Each Party shall ensure, in accordance with its laws and regulations, that authorisation for the supply of a service, once granted, enters into effect without undue delay. (14)
12. Each Party shall ensure that the authorisation fees (15) charged by its competent authorities are reasonable, transparent and do not in themselves restrict the supply of a service. Each Party shall endeavour to accept the payment of those authorisation fees by electronic means.
13. Each Party shall provide adequate procedures to verify the competence of professionals of the other Party.
14. If a Party requires an examination for authorisation for the supply of a service, it shall, to the extent practicable:
(a) provide a reasonable period of time prior to the examination to enable interested persons to submit an application;
(b) ensure that the examination is scheduled at reasonably frequent intervals;
(c) accept a request in electronic format to take the examination; and
(d) consider the use of electronic means for conducting the examination and other aspects of the examination process.
15. Each Party may encourage its competent authorities to establish fast-track procedures for service suppliers seeking to renew or extend their current authorisations.
16. If a Party adopts or maintains measures relating to authorisation for the supply of a service, it shall ensure that its competent authorities reach and administer their decisions in a manner independent from any supplier of a service for which authorisation is required. (16)
Article 8.9. Recognition
1. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing, or certification of service suppliers, and subject to the requirements of paragraph 4, a Party may recognise the education or experience obtained, requirements met, or licences or certifications granted in a non-Party. That recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement with the non-Party concerned, or may be accorded autonomously.
2. If a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted, in the territory of a non-Party, nothing in Article 8.7 (Most-Favoured- Nation Treatment) shall be construed to require the Party to accord recognition to the education or experience obtained, requirements met, or licences or certifications granted, in the territory of the other Party.
3. A Party that is 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 that agreement or arrangement, or to negotiate comparable ones with it. Where a Party accords recognition autonomously, that Party shall afford adequate opportunity for the other Party to demonstrate that education, experience, licences, or certifications obtained or requirements met in that other Party’s territory should be recognised.
4. A Party shall not accord recognition in a manner which would constitute a means of discrimination between the other Party and non-Parties 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.
5. As set out in Annex 8A (Professional Services), each Party shall endeavour to facilitate trade in professional services, including through encouraging relevant bodies in its territory that have expressed mutual interest for negotiating mutual recognition agreements or similar arrangements for recognition of professional qualifications to enter into those negotiations in accordance with that Annex.
Article 8.10. Denial of Benefits
1. A Party may deny the benefits of this Chapter:
(a) to the supply of any service, if it establishes that the service is supplied from or in the territory of a non-Party;
(b) to a service supplier that is a juridical person, if it establishes that it is not a service supplier of the other Party; or
(c) in the case of the supply of a maritime transport service, if it establishes that the service is supplied:
(i) by a vessel registered under the laws and regulations of a non-Party; and
(ii) by a person of a non-Party which operates or uses the vessel in whole or in part.
2. A Party may deny the benefits of this Chapter to a service supplier of the other Party, if the service supplier is a juridical person owned or controlled by person of a non-Party, and the denying Party adopts or maintains measures with respect to the non-Party or a person of 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.
Article 8.11. Transparency
1. The Parties recognise that transparent measures governing trade in services are important in facilitating the ability of service suppliers to gain access to, and operate in, each other’s markets. Each Party shall promote regulatory transparency in trade in services.
2. Notwithstanding Article 25.7 (Non-Application of Dispute Settlement – Transparency), as far as measures of general application affecting trade in services are concerned, the provisions of Article 25.2 (Publication – Transparency) shall be applicable for central, regional, and local governments and authorities of a Party and shall be subject to Chapter 29 (Dispute Settlement).
3. Each Party shall publish promptly and, except in emergency situations, no later than the time of their entry into force, all international agreements pertaining to or affecting trade in services to which a Party is a signatory.
4. Each Party shall respond promptly to any request by the other Party for specific information on any of its measures of general application, including any new, or any changes to existing, laws, regulations or administrative guidelines, or its international agreements, that the requesting Party considers may pertain to or affect trade in services.
Article 8.12. Disclosure of Confidential Information
Nothing in this Chapter shall be construed as requiring a Party to provide to the other Party confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or which would prejudice the legitimate commercial interests of particular juridical persons, public or private.
Article 8.13. Monopolies and Exclusive Service Suppliers
1. Each Party shall ensure that any monopoly supplier of a service in its territory does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that Party’s obligations under specific commitments.
2. Where a Party’s monopoly supplier of a service competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights and which is subject to that Party’s commitments, that Party shall ensure that such a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with such commitments.
3. If a Party has a reason to believe that a monopoly supplier of a service of the other Party is acting in a manner inconsistent with paragraph 1 or 2, it may request the other Party establishing, maintaining, or authorising that supplier to provide specific information concerning the relevant operations.
4. This Article shall also apply to cases of exclusive service suppliers, where a Party, formally or in effect:
(a) authorises or establishes a small number of service suppliers; and
(b) substantially prevents competition among those suppliers in its territory.
Article 8.14. Business Practices
1. The Parties recognise that certain business practices of service suppliers, other than those falling under Article 8.13 (Monopolies and Exclusive Service Suppliers), may restrain competition and thereby restrict trade in services.
2. Each Party shall, on request of the other Party, enter into consultations with a view to eliminating practices referred to in paragraph 1. The requested Party shall accord full and sympathetic consideration to such request and shall cooperate through the supply of publicly available non-confidential information of relevance to the matter in question. The requested Party may also provide other information available to the requesting Party, subject to its laws and regulations and to the conclusion of a satisfactory agreement concerning the safeguarding of its confidentiality by the requesting Party.
Article 8.15. Payments and Transfers
1. Except under the circumstances envisaged in Article 28.3 (Measures to Safeguard the Balance of Payments – General Provisions and Exceptions), a Party shall not apply restrictions on international transfers or payments for current transactions relating to its specific commitments.
2. Each Party shall permit international transfers or payments for current transactions relating to its specific commitments to be made in a freely convertible currency at the market rate of exchange prevailing at the time of transfer.
3. Nothing in this Chapter shall affect the rights and obligations of a Party as a member of the International Monetary Fund (“IMF”) under the IMF Articles of Agreement, as may be amended, including the use of exchange actions which are in conformity with the IMF Articles of Agreement, as may be amended, provided that the Party shall not impose restrictions on any capital transaction inconsistently with its specific commitments under this Chapter regarding such transactions, except under Article 28.3 (Measures to Safeguard the Balance of Payments – General Provisions and Exceptions) or on request of the IMF.
Article 8.16. Safeguard Measures
1. The Parties note that Article X of GATS provides for multilateral negotiations on the question of emergency safeguard measures based on the principle of non- discrimination. The Parties shall review the issue of emergency safeguard measures related to trade in services in light of any provisions agreed under Article X of GATS with a view to their incorporation into this Chapter.
2. In the event that a Party encounters difficulties in the implementation of its commitments under this Chapter, that Party may request consultations with the other Party to address those difficulties.
Article 8.17. Subsidies
1. Notwithstanding subparagraph 3(c) of Article 8.2 (Scope), the Parties shall review the issue of disciplines on subsidies related to trade in services in light of any disciplines agreed under Article XV of GATS with a view to their incorporation into this Chapter.
2. A Party which considers that it is adversely affected by a subsidy of the other Party related to trade in services may request consultations with the other Party on such matters. On receipt of such a request, the requested Party shall enter into consultations with the requesting Party, with a view to resolving the matter, provided that the request includes an explanation of how the subsidy has adversely affected trade in services between the Parties. During the consultations, the Party granting the subsidy may consider a request of the other Party for information relating to the subsidy.
3. Neither Party shall have recourse to dispute settlement under Chapter 29 (Dispute Settlement) for any request made or consultations held under this Article or any other dispute arising under this Article.
Article 8.18. Cooperation
The Parties shall strengthen cooperation efforts in sectors, including sectors which are not covered by current cooperation arrangements. The Parties shall discuss and agree on the sectors for cooperation and develop cooperation programmes in these sectors in order to improve their domestic services capacity and their efficiency and competitiveness.
Article 8.19. Subcommittee on Trade In Services
1. The Parties hereby establish a Subcommittee on Trade in Services (“Subcommittee”) composed of relevant government representatives of each Party. (17)
2. The Subcommittee shall:
(a) review and monitor the implementation and operation of this Chapter, Chapter 9 (Financial Services), Chapter 10 (Temporary Movement of Natural Persons), Chapter 11 (Telecommunications), and Chapter 12 (Digital Trade) (“the relevant Chapters”);
(b) consider ways to further enhance trade between the Parties in the areas covered by the relevant Chapters;
(c) consider any other matters related to this Chapter identified by either Party; and
(d) facilitate the exchange of information between the Parties in relation to the relevant Chapters.
3. The Subcommittee may:
(a) make recommendations, or refer matters, to the Joint Committee; and
(b) refer matters to any ad hoc or standing working group or any other subsidiary body related to the relevant Chapters.
4. The Subcommittee shall meet one year after the date of entry into force of this Agreement, and thereafter as agreed by both Parties.
5. The Subcommittee shall report to the Joint Committee as required.
Chapter 9. FINANCIAL SERVICES
Article 9.1. Definitions
For the purposes of this Chapter:
“commercial presence” means any type of business or professional establishment, including through:
(a) the constitution, acquisition or maintenance of a juridical person; or
(b) the creation or maintenance of a branch or representative office, within the territory of a Party for the purpose of supplying a financial service; (1)
“electronic payments” means an acceptable transfer of monetary value from a payer to a payee through electronic means;
“financial service” means any service of a financial nature offered by a financial service supplier of a Party. Financial services include all insurance and insurance related services, all banking and other financial services (excluding insurance). Financial services include the following activities:
(a) insurance and insurance-related services:
(i) direct insurance (including co-insurance):
(A) life; and
(B) non-life;
(ii) reinsurance and retrocession;
(iii) insurance intermediation, such as brokerage and agency; and
(iv) services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;
(b) banking and other financial services (excluding insurance):
(i) acceptance of deposits and other repayable funds from the public;
(ii) lending of all types, including consumer credit, mortgage credit, factoring, and financing of commercial transactions;
(iii) financial leasing;
(iv) all payment and money transmission services, including credit, charge and debit cards, travellers’ cheques, and bankers’ drafts;
(v) guarantees and commitments;
(vi) trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
(A) money market instruments (including cheques, bills or certificates of deposits);
(B) foreign exchange;
(C) derivative products including futures and options;
(D) exchange rate and interest rate instruments, including products such as swaps and forward rate agreements;
(E) transferable securities; or
(F) other negotiable instruments and financial assets, including bullion;
(vii) participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately), and provision of services related to such issues;
(viii) money broking;
(ix) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository, and trust services;
(x) settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;
(xi) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services; and
(xii) advisory, intermediation and other auxiliary financial services on all the activities listed at subparagraphs (i) through (xi), including credit reference and analysis, investment and portfolio research and advice, and advice on acquisitions and on corporate restructuring and strategy;
“financial service supplier” means any person of a Party seeking to supply or
supplying financial services, but does not include a public entity; (2)
“juridical person of a Party” means a juridical person which is either:
(a) constituted or otherwise organised under the law of that Party, and is engaged in substantive business operations in the territory of that Party; or
(b) in the case of the supply of a service through commercial presence, owned or controlled by:
(i) natural persons of that Party; or
(ii) juridical persons of that Party identified under subparagraph (a);
a juridical person is:
(a) “owned” by persons of a Party if more than 50 per cent of the equity interest in it is beneficially owned by persons of that Party;
(b) “controlled” by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
“natural person of a Party” means a national as defined in Article 1.4 (General Definitions – Initial Provisions and General Definitions);
“new financial service” means a financial service that is not supplied in the territory of a Party but which is supplied and regulated in the territory of the other Party. This may include services related to existing and new financial products, or the manner in which the financial product is delivered;
“public entity” means: