2. Paragraph 1 of Article 18.4 (Non-discriminatory Treatment and Commercial Considerations) does not apply with respect to the supply of financial services by a state-owned enterprise pursuant to a government mandate if that supply of financial services:
(a) supports exports or imports, provided that these services are:
(i) not intended to displace commercial financing; or
(ii) offered on terms no more favourable than those that could be
obtained for comparable financial services in the commercial market; (26)
(b) supports private investment outside the territory of the Party, provided that these services are:
(i) not intended to displace commercial financing; or
(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or
(c) is offered on terms consistent with the Arrangement, provided that it falls within the scope of the Arrangement.
3. The supply of financial services by a state-owned enterprise pursuant to a government mandate shall be deemed not to give rise to adverse effects under subparagraphs 1(b), 1(c), 2(b) or 2(c) of Article 18.6 (Non-commercial Assistance) where the Party in which the financial service is supplied requires a local presence in order to supply those services, if that supply of financial services: (27)
(a) supports exports and imports, provided that these services are: (i) not intended to displace commercial financing; or
(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market;
(b) supports private investment outside the territory of the Party, provided that these services are:
(i) not intended to displace commercial financing; or
(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or
(c) is offered on terms consistent with the Arrangement, provided that it falls within the scope of the Arrangement.
4. Article 18.6 (Non-commercial Assistance) does not apply with respect to an enterprise located outside the territory of a Party over which a state-owned enterprise of that Party has assumed temporary ownership as a consequence of foreclosure or a similar action in connection with defaulted debt, or payment of an insurance claim by the state-owned enterprise, associated with the supply of the financial services referred to in paragraphs 2 and 3, provided that any support the Party, a state enterprise or state-owned enterprise of the Party, provides to the enterprise during the period of temporary ownership is provided in order to recoup the state-owned enterprise's investment in accordance with a restructuring or liquidation plan that will result in the ultimate divestiture from the enterprise.
5. Article 18.4 (Non-discriminatory Treatment and Commercial Considerations), Article 18.6 (Non-commercial Assistance), and Article 18.10 (Transparency) do not apply with respect to a state-owned enterprise or designated monopoly if in any one of the three previous consecutive fiscal years, the annual revenue derived from the commercial activities of the state-owned enterprise or designated monopoly was less than a threshold amount which shall be calculated in accordance with Annex 18-A (Threshold Calculation). (28)
Article 18.14. Further Negotiations
Within five years of the date of entry into force of this Agreement, the Parties shall conduct further negotiations on extending the application of the disciplines in this Chapter in accordance with Annex 18-C (Further Negotiations).
Article 18.15. Process for Developing Information
Annex 18-B (Process for Developing Information Concerning State- Owned Enterprises and Designated Monopolies) applies in any dispute under Chapter 30 (Dispute Settlement) regarding a Party's conformity with Article 18.4 (Non-discriminatory Treatment and Commercial Considerations) or Article 18.6 (Non-commercial Assistance).
Chapter 19. SMALL AND MEDIUM-SIZED ENTERPRISES
Article 19.1. General Provisions
1. The Parties recognise the importance of:
(a) SMEs in their bilateral trade and investment relations; and
(b) provisions in this Agreement that are of particular benefit to SMEs.
2. The Parties affirm their commitment to promoting an environment that:
(a) facilitates and supports the development, growth, and competitiveness of SMEs;
(b) promotes job creation in SMEs; and
(c) enhances SMEs' ability to benefit from this Agreement.
3. The Parties recognise the importance of current initiatives, efforts and work on SMEs developed in relevant international fora, and in taking into account their findings and recommendations, where appropriate.
4. The Parties recognise the importance of the participation of SMEs owned or led by under-represented groups, such as women, youth, indigenous peoples, persons with a disability and minority groups in international trade.
5. The Parties also recognise the relevance of:
(a) working cooperatively to identify and address barriers to SMEs' access to international markets;
(b) considering the needs of SMEs when formulating new legislation, regulation and product standards; and
(c) assessing the effects of globalisation on SMEs and, in particular, examining issues related to SMEs' access to financing and to support for innovation.
Article 19.2. Information Sharing
1. Each Party shall establish or maintain its own publicly accessible website containing information regarding this Agreement, including:
(a) the full text of this Agreement;
(b) a summary of this Agreement; and
(c) information designed for SMEs that contains:
(i) a description of the provisions in this Agreement that the Party considers to be relevant to SMEs; and
(ii) any additional information that the Party considers useful for SMEs interested in benefitting from the opportunities provided by this Agreement.
2. Each Party shall include in its website referred to in paragraph 1 links to:
(a) the equivalent website of the other Party; and
(b) the websites of its own government agencies or authorities and other appropriate entities that provide information the Party considers useful to any person interested in trading, investing or doing business in that Party's territory.
3. Subject to each Party's laws and regulations, the information described in subparagraph 2(b) may include:
(a) customs regulations and procedures; (1)
(b) enquiry points;
(c) regulations and procedures concerning intellectual property rights;
(d) technical regulations, standards, and sanitary and phytosanitary measures relating to importation and exportation;
(e) foreign investment regulations;
(f) business registration procedures;
(g) employment regulations;
(h) taxation information;
(i) trade promotion programmes;
(j) information related to the temporary entry of business persons as defined in Chapter 11 (Temporary Entry for Business Persons); and
(k) rules on government procurement.
4. Each Party shall include in the website referred to in paragraphs 1 and 2 a link to a database that is electronically searchable including where possible by HS code, and that may include, ifthe Party considers applicable, the following information with respect to access to its market:
(a) rates of customs duty to be applied by the Party to the originating goods of the other Party;
(b) the most-favoured-nation applied rates of customs duty;
(c) tariff rate quotas established by the Party;
(d) rules of origin; and
(e) other relevant measures as agreed by the Parties.
5. Each Party shall regularly, or on request of the other Party, review the information and links on the website referred to in paragraphs 1 and 2 to ensure that such information and links are up to date and accurate.
6. Each Party may recommend additional information that the other Party may consider including on its website referred to in paragraphs 1 and 2.
Article 19.3. Contact Points on SMEs
1. Each Party shall designate and notify a contact point on SMEs.
2. Each Party shall promptly notify the other Party of any change to its contact point.
3. The contact points shall:
(a) facilitate communications between the Parties on any matter the Party considers relevant to SMEs;
(b) exchange information to assist in monitoring the implementation of this Agreement as it relates to SMEs; and
(c) where appropriate, facilitate coordination between the Parties and any committee, working group or other subsidiary body established by this Agreement, on any matter covered by this Chapter.
Article 19.4. Cooperation to Increase Trade and Investment Opportunities for SMEs
1. The Parties acknowledge the importance of cooperating to achieve progress in reducing barriers to SMEs' access to international markets.
2. The Parties may undertake activities to strengthen cooperation under this Chapter including:
(a) identifying ways to assist SMEs of the Parties to take advantage of the commercial opportunities under this Agreement;
(b) exchanging and discussing each Party's experiences and best practices in supporting and assisting SMEs with respect to, among other things:
(i) training programmes;
(ii) trade education;
(iii) trade finance;
(iv) identifying commercial partners in the other Party;
(v) establishing good business credentials; and
(vi) payment practices in the other Party's market.
(c) facilitating the development of programmes to assist SMEs to participate in and integrate effectively into global markets and supply chains;
(d) identifying non-tariff barriers that adversely affect trade outcomes for SMEs and considering ways to minimise these barriers;
(e) exchanging information relating to the participation of SMEs in digital trade and e-commerce, with a view to assisting SMEs to take advantage of opportunities resulting from this Agreement; and
(f) considering any other matter pertaining to SMEs, including any issues raised by SMEs regarding their ability to benefit from this Agreement.
3. In carrying out any activities or programmes pursuant to paragraph 2, the Parties may seek to collaborate with experts, international organisations, or the private sector, as appropriate.
Article 19.5. Other Provisions That Benefit SMEs
The Parties recognise that, in addition to the provisions in this Chapter, there are provisions in this Agreement that seek to enhance cooperation between the Parties on SME issues, or that may be of benefit to SMEs.
Article 19.6. Non-Application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 30 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 20. INNOVATION
Article 20.1. Definitions
For the purposes of this Chapter:
"innovation" means the development or implementation of a new or improved product, process, or organisational method, or combination thereof.
Article 20.2. Objective
The objective of this Chapter is to support trade and economic growth between the Parties through collaboration on innovation, consistent with the laws, regulations and policies of each Party.
Article 20.3. General Provisions
1. The Parties recognise the important role that innovation plays in their economies, including by stimulating competitiveness, increasing productivity, encouraging investment and promoting international trade.
2. The Parties confirm that their intention is for this Agreement to support innovation in their respective economies, including by fostering opportunities in innovation-intensive industries and encouraging trade in innovative goods and services.
3. The Parties acknowledge the existing collaboration on innovation between their governments, industries, universities, publicly funded research agencies and other non-governmental bodies, and confirm their commitment to further strengthening this collaboration.
Article 20.4. Artificial Intelligence and Emerging Technologies
1. The Parties recognise that emerging technologies, including artificial intelligence and other digital technologies, are becoming increasingly important within the global economy, and offer significant social and economic benefits.
2. The Parties shall cooperate, where appropriate through the Strategic Innovation Dialogue established pursuant to paragraph 1 of Article 20.5 (Strategic Innovation Dialogue), in activities aimed at encouraging the development and adoption of emerging technologies, and facilitating trade in related products and services. Those activities may include:
(a) sharing research and industry practices related to emerging technologies and their governance;
(b) promoting and sustaining the responsible use and adoption of emerging technologies by businesses and across the community;
(c) encouraging commercialisation opportunities and collaboration between research institutions, industries and businesses related to emerging technologies;
(d) playing an active role in the development of international standards, regulations and conformity assessment procedures that provide clear expectations for businesses and support the growth of emerging technologies;
(e) facilitating and promoting investment in research and development related to emerging technologies; and
(f) facilitating and promoting trade in emerging technologies, including by exchanging views on effective trade policy approaches.
3. The Parties also recognise the importance of developing governance frameworks for the trusted, safe, and responsible use of emerging technologies that will help realise the benefits of these technologies. The Parties further acknowledge the benefits of ensuring that those frameworks are internationally aligned as far as possible. To this end, the Parties shall endeavour to:
(a) collaborate on, and promote the development and adoption of, governance frameworks that support the trusted, safe, and responsible use of emerging technologies, through relevant international fora, in particular the Global Partnership on Artificial Intelligence; and
(b) take into consideration internationally recognised principles or guidelines, in particular the Organisation for Economic Cooperation and Development's Principles on Artificial Intelligence adopted by its Council on 22 May 2019, when developing those frameworks.
Article 20.5. Strategic Innovation Dialogue
1. The Parties hereby establish a Strategic Innovation Dialogue for the purposes of facilitating an open business environment that supports and stimulates innovation in their territories, promoting and strengthening trade-facilitative innovation policy, identifying unnecessary barriers to trade in innovative goods and services, and identifying other opportunities to further the objective of this Chapter.
2. Through the Strategic Innovation Dialogue, the Parties shall mutually identify areas of cooperation to promote and facilitate innovation in their territories. Examples of areas of cooperation may include:
(a) regulatory approaches that facilitate innovation, including the uptake and implementation of international innovation best practice standards;
(b) emerging and transformative technologies, including clean and low emissions technologies, artificial intelligence, and other digital technologies;
(c) the commercial application of new technologies, including in economic sectors such as agriculture, health, energy, mineral tesources, space, and manufacturing;
(d) value chain matters, including supply chain resilience; and
(e) global innovation networks and cross-border trade in intangible assets, including through higher education and research collaboration.
3. Through the Strategic Innovation Dialogue, the Parties shall:
(a) share best practice principles and explore opportunities in innovation policy across government, academia, research organisations, industry and business;
(b) review existing relationships for opportunities to strengthen bilateral engagement on the impacts of innovation on trade and investment;
(c) explore ways in which innovation can further promote trade and investment; and
(d) consider any other matter that the Parties deem appropriate which furthers the objective of this Chapter.
4. Consistent with the objective of this Chapter, the Strategic Innovation Dialogue may develop a cooperative activity between the Parties in an area of mutual interest.
5. The Parties may consult with or seek advice from a qualified non- governmental expert or stakeholder in relation to furthering the objective of this Chapter, including by inviting them to participate in the Strategic Innovation Dialogue.
6. The Strategic Innovation Dialogue shall be co-chaired by a representative from each Party.
7. The Strategic Innovation Dialogue shall convene within 12 months of the date of entry into force of this Agreement and thereafter at least once every two years, unless the Parties agree otherwise.
8. Each Party shall, on entry into force of this Agreement, designate a contact point for the Strategic Innovation Dialogue and notify the other Party of that contact point. Each Party shall promptly notify the other Party of any change to those contact details.
9. The Strategic Innovation Dialogue may engage with any committee, working group, or other subsidiary body established under this Agreement to further the objective of this Chapter. (1)
10. The Joint Committee may refer a matter to the Strategic Innovation Dialogue for its consideration.
Article 20.6. Review of this Agreement
1. The Parties recognise the importance of ensuring that the disciplines contained in this Agreement remain relevant to the trade and investment issues and challenges confronting them, including those arising from innovation.
2. Where a review is conducted pursuant to paragraph 1 and in accordance with subparagraph 3(a) of Article 32.6 (General Review - Final Provisions), the Parties shall take into account developments in innovation, including as discussed through the Strategic Innovation Dialogue.
Article 20.7. Non-Application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 30 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 21. LABOUR
Article 21.1. Definitions
For the Purposes of this Chapter:
"ILO Declaration" means the International Labour Organization ("ILO") Declaration on Fundamental Principles and Rights at Work and its Follow- up done at Geneva on 18 June 1998;