1. Where a Party considers that a sanitary or phytosanitary measure is affecting its trade with the other Party, it may, through the contact points, request a detailed explanation of the sanitary or phytosanitary measure including information on the technical justification for the measure. The other Party shall respond promptly to any requests for such explanations.
2. Either Party may request consultations with the other Party in relation to the same matter for which an explanation has been provided pursuant to Paragraph 1, and such consultations shall be held as soon as practicable.

Article 13. Cooperation

The Parties may explore opportunities for further cooperation, collaboration and information exchange on sanitary or phytosanitary matters of mutual interest consistent with this Chapter, including in relevant international standard-setting bodies.

The Parties may explore opportunities for further cooperation, collaboration and information exchange on sanitary or phytosanitary matters of mutual interest consistent with this Chapter, including in relevant international standard-setting bodies.

Article 13. Cooperation

The Parties may explore opportunities for further cooperation, collaboration and information exchange on sanitary or phytosanitary matters of mutual interest consistent with this Chapter, including in relevant international standard-setting bodies.

Article 14. Consultations

Any requests for consultations or consultations held pursuant to Articles 10, 11 or 12 shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding.

Chapter 8. Technical Barriers to Trade

Article 1. Objectives

The objectives of this Chapter are to:
(a) increase and facilitate trade through furthering the implementation of the TBT Agreement and building on the work of APEC on standards and conformance;
(b) promote information exchange and strengthen regulatory cooperation to:
(i) enhance mutual understanding of each Party's standards, technical regulations and conformity assessment procedures;
(ii) enable cooperation between the Parties in relation to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures; and
(iii) manage risks to health, safety and the environment as a means of supporting trade facilitation;
(c) eliminate unnecessary technical barriers to trade in goods between the Parties and reduce, where possible, unnecessary transaction costs associated with trade between the Parties;
(d) strengthen cooperation between the Parties in the work of international bodies related to standardisation and conformity assessments; and
(e) provide a framework to implement supporting mechanisms to realise these objectives.

Article 2. Scope

1. This Chapter applies to all standards, technical regulations and conformity assessment procedures of the Parties that may directly or indirectly affect the trade in goods between the Parties, except as provided in Paragraphs 3 and 4.
2. This Chapter applies to all goods traded between the Parties, regardless of the origin of the goods.
3. This Chapter does not apply to purchasing specifications used in government procurement, which shall be subject to the provisions of Chapter 12 (Government Procurement) to the extent they apply.
4. This Chapter does not apply to sanitary and phytosanitary measures which are covered by Chapter 7 (Sanitary and Phytosanitary Measures).

Article 3. Definitions

For the purposes of this Chapter:
(a) the definitions in Annex 1 of the TBT Agreement are incorporated into and made part of this Chapter, mutatis mutandis;
(b) designation means the authorisation of a conformity assessment body to perform conformity assessment procedures by a body with the authority to designate, monitor, suspend or withdraw designation, or remove suspension of conformity assessment bodies within the Areas of the Parties;
(c) TBT Agreement means the Agreement on Technical Barriers to Trade, which is part of the WTO Agreement; and
(d) technical regulations has the meaning set out in the TBT Agreement and includes standards that regulatory authorities of a Party recognise as meeting the mandatory requirements related to performance-based regulations.

Article 4. Affirmation of the Tbt Agreement

1. The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement.
2. Nothing in this Chapter shall prevent a Party from preparing, adopting or applying, in accordance with its rights and obligations under the TBT Agreement, technical regulations which are not more trade restrictive than necessary to fulfil a legitimate objective, taking into account the risks that non-fulfilment would create. Such legitimate objectives are, inter alia, national security requirements, the prevention of deceptive practices, the protection of human health or safety, animal or plant life or health, or the environment.

Article 5. International Standards

1. The Parties shall use relevant international standards, guides or recommendations, or the relevant parts of them, to the extent provided in Articles 2 and 5 and Annex 3 of the TBT Agreement, as a basis for their technical regulations and related conformity assessment procedures, except when such international standards, guides or recommendations or their relevant parts would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued.
2. In determining whether an international standard, guide or recommendation as mentioned in Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall base its determination on the principles set out in relevant Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since 1 January 1995.
3. The Parties shall cooperate with each other, where appropriate, in the context of their participation in international standardising bodies, with a view to developing international standards that facilitate trade and do not create unnecessary obstacles to international trade.

Article 6. Equivalence of Technical Regulations

1. Consistent with the TBT Agreement, each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided that it is satisfied that these regulations adequately fulfil the objectives of its own regulations.
2. A Party shall, at the request of the other Party, explain the reasons why it has not accepted a technical regulation of the other Party as equivalent.
3. Each Party shall give positive consideration to a request by the other Party to negotiate and conclude arrangements for achieving the equivalence of technical regulations as mentioned in Paragraph 1. Where a Party declines such a request, it shall, at the request of the other Party, give its reasons for doing so.

Article 7. Conformity Assessment Procedures

1. The Parties shall seek to use, on a case by case basis, a broad range of mechanisms to facilitate the acceptance of conformity assessment procedures conducted in the Area of the other Party, including:
(a) promoting recognition of cooperative arrangements between accreditation agencies located in each other's Area;
(b) implementing unilateral recognition by one Party of the results of conformity assessments performed in the other Party's Area;
(c) implementing mutual recognition of conformity assessment procedures conducted by bodies located in the respective Areas of the Parties;
(d) recognising accreditation procedures of the other Party for qualifying conformity assessment bodies in that Party's Area;
(e) recognising the other Party's designation of conformity assessment bodies;
(f) utilising relevant regional and international multilateral recognition agreements and arrangements; and
(g) accepting the declaration of conformity by a supplier in the other Party's Area.
2. The Parties shall intensify their exchange of information on the mechanisms set out in Paragraph 1 and similar mechanisms with a view to facilitating the acceptance of conformity assessment procedures and results.
3. The Parties shall seek to ensure that conformity assessment procedures applied between them facilitate trade by ensuring that they are no more restrictive than is necessary to provide the importing Party with adequate confidence that products conform with the applicable technical regulations, taking into account the risk that non-conformity would create.
4. A Party may accredit or otherwise recognise conformity assessment bodies in the Area of the other Party. The terms of accreditation or recognition shall be no less favourable than those it accords to conformity assessment bodies in its Area. If a Party accredits or otherwise recognises a body assessing conformity with a particular technical regulation or standard and that Party refuses to accredit or otherwise recognise a body of the other Party assessing conformity with that technical regulation or standard, it shall, at the request of the other Party, give the reasons for its refusal.
5. To enhance confidence in the continued reliability of each other's conformity assessment results, the Parties may consult, as appropriate, on matters such as the technical competence of conformity assessment bodies in the other Party.
6. A Party shall, at the request of the other Party, give the reasons why it has not accepted the results of any conformity assessment procedure performed in the Area of the other Party.
7. Each Party shall give positive consideration to a request by the other Party to negotiate and conclude arrangements to facilitate recognition of the results of conformity assessment procedures conducted by bodies located in the other Party. Where a Party declines such a request, it shall, at the request of the other Party, give its reasons for doing so.

Article 8. Cooperation for Regulatory Effectiveness

1. Recognising the important relationship between good regulatory practices and trade facilitation, the Parties shall cooperate in the areas of standards, technical regulations and conformity assessment, on a case by case basis, including to:
(a) promote good regulatory practice based on risk management principles;
(b) improve the quality and effectiveness of their technical regulations;
(c) develop joint initiatives for managing risks to health, safety and the environment; and
(d) build understanding and capacity to promote better regulatory compliance.
2. The Parties shall implement this Article by establishing work programmes under Article 10 to, inter alia:
(a) exchange information on, inter alia:
(i) regulatory systems;
(ii) incident analysis;
(iii) hazard alerts;
(iv) product bans and recalls; and
(v) procedures, strategies and programmes for product surveillance activities; and
(b) cooperate as mutually determined, on, inter alia:
(i) the development of technical regulations;
(ii) regulatory reviews and implementation; and
(iii) the development and implementation of risk management principles, including product monitoring, safety, compliance and enforcement procedures.

Article 9. Transparency

1. In order to enhance the opportunity for the other Party and interested persons of the other Party to provide meaningful comments on a proposal to introduce a particular technical regulation or conformity assessment procedure, a Party publishing a notice under Article 2(9) or 5(6) of the TBT Agreement shall:
(a) include in the notice a statement describing the objective of the proposal and the rationale for the approach that Party is proposing; and
(b) transmit the notice via electronic communication to the other Party through its enquiry point established under Article 10 of the TBT Agreement at the same time as it notifies WTO members of the proposal pursuant to the TBT Agreement.
2. Each Party shall allow at least 60 days from the transmission of the notification under Paragraph 1(b) for the other Party and interested persons of the other Party to make written comments on the proposal.
3. Where a Party makes a notification under Article 2(10) or 5(7) of the TBT Agreement, it shall at the same time transmit that notification via electronic communication to the other Party through its enquiry point established under Article 10 of the TBT Agreement.
4. Where goods are covered by an Annex or an implementing arrangement to which Article 11 applies and a Party takes a measure to manage an immediate risk that it considers those goods may pose to health, safety or the environment, it shall notify immediately the other Party, through the contact point designated under Article 10 of the measure and the reasons for the imposition of the measure.
5. A Party shall, at the request of the other Party, provide information regarding the objective of, and rationale for, a standard, technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.

Article 10. Implementation

1. Each Party shall designate a contact point which shall have responsibility to work collaboratively with the contact point of the other Party to:
(a) coordinate participation in work programmes with persons and organisations in their respective Areas that have responsibility for accreditation of conformity assessment bodies or relevant technical regulations; (b) ensure appropriate steps are taken to address any issue that the other Party may raise related to the development, adoption, application or enforcement of technical regulations and conformity assessment procedures;
(c) enhance mutual cooperation in the development and improvement of technical regulations and conformity assessment procedures;
(d) facilitate, where appropriate, sectoral cooperation among governmental and non-governmental regulatory authorities, accreditation agencies and conformity assessment bodies in the Parties' Areas;
(e) exchange information, where appropriate, on developments in non-governmental, regional and multilateral fora engaged in activities related to standardisation, technical regulations and conformity assessment procedures; and
(f) take any other steps the Parties consider will assist them in implementing the TBT Agreement, implementing this Chapter and in facilitating trade in goods between them.
2. Each Party shall provide the other Party with the name of the designated organisation that shall be its contact point and the contact details of relevant officials in that organisation, including telephone, facsimile, email and other relevant details.
3. Each Party shall notify the other Party promptly of any change in its contact point or any amendments to the details of the relevant officials.
4. The Parties shall establish a Committee on Technical Barriers to Trade ("TBT Committee") consisting of officials from the contact points and any other representatives of the Parties to promote and monitor the implementation and administration of this Chapter. The TBT Committee shall meet within one year of entry into force of this Agreement and thereafter once every two years or as otherwise mutually determined by the Parties. Meetings may be conducted in person or via teleconference, video-conference or any other means mutually determined by the Parties. The TBT Committee may also address issues through correspondence, including via electronic communication.
5. The functions of the TBT Committee shall include to:
(a) identify and agree priority sectors and areas for enhanced cooperation, including giving due consideration to any sector-specific proposal made by either Party;
(b) where priority sectors or areas have been agreed, establish work programmes with clear targets, design structures and timelines;
(c) monitor the progress of work programmes established under subparagraph (b);
(d) consult with a view to resolving any matter arising under this Chapter, in accordance with Article 12;
(e) review this Chapter in light of any developments in relation to the TBT Agreement, and develop recommendations to the Joint Commission for amendments to this Chapter in light of those developments; and
(f) report to the Joint Commission on the implementation of this Chapter, as it considers appropriate.
6. The Parties shall ensure, to the extent possible, that the persons and organisations in their respective Areas that have responsibility for relevant accreditation of conformity assessment bodies or relevant technical regulations participate in work programmes and technical consultations where the TBT Committee has:
(a) established a work programme under Paragraph 5(b); or
(b) been requested to undertake technical consultations under Article 12.

Article 11. Agreements or Arrangements

1. The Parties shall seek to identify trade-facilitating initiatives regarding standards, technical regulations and conformity assessment procedures, including those that are appropriate for particular issues or sectors. Such initiatives may include:
(a) agreements or arrangements on regulatory issues, such as alignment of standards, convergence or equivalence of technical regulations, conformity assessment procedures and compliance issues; and
(b) the use of asymmetrical approaches, where appropriate.
2. The Parties may conclude Annexes to this Chapter setting out agreed principles and procedures relating to technical regulations and conformity assessments applicable to goods traded between them.
3. The Parties may conclude implementing arrangements setting out:
(a) details for the implementation of the Annexes to this Chapter; or
(b) arrangements resulting from work programmes established under Article 10.
4. The Parties shall take into account any existing bilateral, regional and multilateral arrangements concerning technical regulations and conformity assessment procedures that both Parties participate in when developing Annexes and implementing arrangements.
5. The Parties agree to maintain a programme of ongoing review and enhancement of Annexes and implementing arrangements.

Article 12. Technical Consultations

1. Either Party may request technical consultations with the other Party with the aim of resolving any matter arising under this Chapter. Unless the Parties mutually determine otherwise, the Parties shall hold technical consultations within 60 days from the request for technical consultations. The technical consultations may be conducted in person or via email, teleconference, video-conference or any other means mutually determined by the Parties.
2. Where either Party has requested technical consultations pursuant to Paragraph 1, the other Party shall: (a) investigate the issues that gave rise to the request for consultations including whether there are any irregularities in the implementation of its technical regulations or conformity assessment procedures;
(b) give positive consideration to any request to address any irregularities identified under subparagraph (a); and (c) report back to the other Party on the outcome of its investigations, stating its reasons.
3. Technical consultations may be referred to the TBT Committee by either Party for further consideration.
4. Any action taken pursuant to this Article and consultations held pursuant to Paragraph 5(d) of Article 10 shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding.

Chapter 9. Competition

Article 1. Objectives

The Parties recognise the strategic importance of promoting open and competitive markets through the effective application of competition policies for the purposes of enhancing trade and investment, economic efficiency and consumer welfare.

Article 2. Promotion of Competition

1. Desiring to promote policy coherence and an integrated approach to trade and competition and endorsing the APEC Principles to Enhance Competition and Regulatory Reform, the Parties agree to promote competition and endeavour to ensure that the design of trade and competition policies and the implementation of domestic law gives due recognition to the effects on competition by:
(a) providing transparency in policies, laws and rules, and their implementation;
(b) applying competition policies to economic activities, including public and private business activities, in a manner that does not discriminate between or among economic entities in like circumstances;
(c) maintaining a high-level government commitment to promote competition and enhance economic efficiency, including through assessments of regulatory impacts or other appropriate means;
(d) setting out clear responsibilities within their respective administrations for promoting and identifying the competition and efficiency dimensions in the development of policies and rules, and their implementation; (e) promoting coherent and effective implementation of trade and competition policies within their respective Areas; and
(f) fostering appropriate cooperation between trade and competition officials.
2. The Parties recognise that the implementation of Paragraph 1 may be subject to the different circumstances of the Parties and the different policy approaches that arise from these circumstances.

Article 3. Exemptions and Exceptions

The Parties recognise that exemptions and exceptions from their respective competition regimes may be necessary to achieve other legitimate policy objectives. The Parties shall endeavour to identify and review these exemptions and exceptions to ensure that each is no broader than necessary to achieve a legitimate policy objective, and implemented in a transparent way that minimises distortions to fair and free competition.

Article 4. Cooperation and Exchange of Information

1. The Parties agree to cooperate and coordinate in the area of competition policy by exchanging information on the development of competition policy.
2. Where the Parties have set up their respective regulatory authorities responsible for competition law, the Parties shall encourage their respective regulatory authorities to cooperate in the area of competition law, including through technical assistance as appropriate, consultation and exchanges of information, as permitted by the domestic law and overall policy of each Party and within the scope of the responsibilities of each regulatory authority.

Article 5. Consultations

At the request of either Party, the Parties shall consult on particular anti-competitive practices adversely affecting trade or investment between the Parties, consistent with the objectives of this Chapter.

Article 6. Non-application of Dispute Settlement

Neither Party shall have recourse to any dispute settlement procedures under this Agreement in respect of any issue arising from or relating to this Chapter.

Chapter 10. Electronic Commerce

Article 1. Objectives

The objectives of this Chapter are to:
(a) avoid restrictions to trade between the Parties being introduced as a result of the use of electronic commerce ("E-commerce") transactions;
(b) minimise the extent to which E-commerce transactions are subject to particular requirements, tariffs or other limitations or costs which are additional to other transactions;
(c) encourage where possible the treatment of E-commerce transactions by the Parties as equivalent to corresponding paper transactions; and
(d) promote the use of E-commerce to assist the timeliness and reduce the cost of commercial transactions.

Article 2. Promotion of E-commerce

1. The Parties agree to:
(a) cooperate in promoting with respect to the use of E-commerce:
(i) the maintenance of an open trading environment for the free flow of information and services;
(ii) the minimisation of transaction costs for business;
(iii) the international alignment of laws;
(iv) effective regulatory coordination; and
(v) interoperability of infrastructures, such as secure electronic authentication and payments;
(b) promote the efficient functioning of E-commerce domestically and internationally by, wherever possible, developing domestic regulatory frameworks which are open, avoiding undue restrictions and costs on E-commerce and, as appropriate, ensuring that relevant processes are compatible with evolving international norms and practices;
(c) ensure a predictable and simple legal environment for E-commerce, taking into account the UNCITRAL Model Law on Electronic Commerce 1996 and other model law(s) on E-commerce as may be adopted or revised by UNCITRAL or other such international organisations from time to time, that supports the maintenance of a secure infrastructure, enables public key infrastructure solutions to develop, and includes laws to facilitate the use of electronic methods in meeting statutory requirements;
(d) ensure that regulations and the development of regulations affecting E-commerce are transparent;
(e) endeavour to ensure that policy responses in respect of E-commerce:
(i) are flexible and take account of developments in a rapidly changing technology environment; and
(ii) do not impose unnecessary restrictions on the conduct of E-commerce;
(f) work to build consumer and business confidence to support the fullest economic and social benefits from E-commerce by:
(i) maintaining privacy protection laws and consumer laws relating to E-commerce;
(ii) encouraging the use of electronic signatures and electronic certification in order to ensure authenticity, integrity and confidentiality, and prevent fraud; and
(iii) promoting self-regulatory codes based on international norms and standards;
(g) protect intellectual property rights in a way that is supportive of the application of E-commerce and business innovation; and
(h) ensure that their regulatory regimes support the free flow of services, including the development of innovative ways of developing services, using electronic means.
2. For the purposes of this Article, UNCITRAL means the United Nations Commission on International Trade Law.

Article 3. E-government Initiatives

The Parties agree that E-government initiatives should seek to:
(a) reduce compliance costs and enhance the general level of transparency of government regulations;
(b) deliver efficiency in administration (for example, paperless trading); and
(c) reduce technical barriers to trade.

Article 4. Consultations

At the request of either Party, the Parties agree to consult each other concerning:
(a) the development of policy for the conduct of E-commerce; and
(b) any policies or decisions which may impact adversely on E-commerce aspects of trade between the Parties.

Article 5. Non-application of Dispute Settlement

Neither Party shall have recourse to any dispute settlement procedures under this Agreement in respect of any issue arising from or relating to this Chapter.

Chapter 11. Intellectual Property

Article 1. Objectives

The objectives of this Chapter are to:
(a) promote the importance of intellectual property rights in fostering trade in goods and services, innovation, and economic, social and cultural development;
(b) promote the effective protection, enforcement and maintenance of intellectual property rights;
(c) recognise the need to achieve a fair balance between the rights of intellectual property right holders, the legitimate interests of users and the wider interest of the public with regard to the protected subject matter; and
(d) uphold commitments to combating the infringement of intellectual property rights that occurs through the pirating of copyright works and counterfeiting of trademarks.

Article 2. Definitions

For the purposes of this Chapter:
(a) intellectual property rights refers to copyright and related rights, rights in trade marks, geographical indications, industrial designs, patents, layout designs of integrated circuits, rights in plant varieties and rights in undisclosed information as defined in the TRIPS Agreement; and
(b) TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, which is part of the WTO Agreement.

Article 3. General Provisions

1. Each Party reaffirms its commitment to abide by the TRIPS Agreement and any other multilateral agreement relating to intellectual property which are applicable to both Parties.
2. Each Party shall ensure that it maintains an effective legal framework that gives effect to the rights and obligations applicable to it under the TRIPS Agreement, and includes clearly defined rights and obligations that provide certainty over the protection and enforcement of intellectual property rights to holders of intellectual property rights and users of intellectual property.
3. Subject to the international obligations that are applicable to each Party, the Parties affirm that each Party may:
(a) provide for the international exhaustion of intellectual property rights;
(b) establish that provisions in non-negotiated standard form end-user licence agreements for goods and services (4) do not prevent consumers from exercising the limitations and exceptions recognised in domestic intellectual property laws; and
(c) establish provisions to facilitate the exercise of permitted acts where technological protection measures have been applied.
4. Each Party shall also maintain transparent regulations, efficient and non-discriminatory enforcement mechanisms, and access to expeditious remedies, in accordance with the obligations applicable to each Party under the TRIPS Agreement.
5. In line with the obligations applicable to each Party under the TRIPS Agreement, each Party shall maintain an effective framework for the enforcement of intellectual property rights, including through:
(a) the provision of fair and equitable civil judicial procedures for private enforcement of those rights;
(b) the enforcement of criminal laws relating to wilful activities in respect of copyright piracy and trademark counterfeiting on a commercial scale; and
(c) the provision of effective border control measures and procedures for right holders.
6. All issues pertaining to intellectual property rights in this Agreement shall be interpreted and applied consistent with the object and purpose of this Chapter, unless the context otherwise requires. This does not include compulsory licensing agreements.

Article 4. Contact Points

Each Party shall designate a contact point to facilitate communications between the Parties on any matter covered by this Chapter, and shall provide details of such contact point to the other Party. The Parties shall notify each other promptly of any amendments to the details of their contact points.

Article 5. Exchange of Information

1. Each Party shall, on request of the other Party and subject to its domestic law, provide information relating to:
(a) any new laws that enter into effect in relation to intellectual property;
(b) changes to, and developments in, the implementation of intellectual property systems, aimed at promoting effective and efficient registration or grant of intellectual property rights; and
(c) developments in intellectual property rights enforcement.
2. Any information provided under this Article shall be conveyed through the contact points referred to in Article 4.

Article 6. Cooperation

1. Subject to their respective domestic laws and policies, the Parties agree to cooperate, as set out in this Article, with a view to eliminating trade in goods infringing intellectual property rights and ensuring that the enforcement of intellectual property rights does not itself become a barrier to legitimate trade.
2. The Parties shall endeavour to facilitate the development of contacts and cooperation between their respective government agencies, educational institutions, and other organisations with an interest in the field of intellectual property rights.
3. Each Party shall, on request of the other Party, give due consideration to any specific cooperation proposal made by the other Party relating to the protection or enforcement of intellectual property rights.
4. Any proposal for cooperation shall be conveyed through the contact points referred to in Article 4.

Article 7. Business Facilitation

Each Party shall endeavour to reduce transaction costs associated with the implementation of its intellectual property regime, where practicable and taking into account local conditions and developments in the international community.

Article 8. Genetic Resources, Traditional Knowledge and Folklore

Subject to the international obligations that are applicable to each Party, each Party may establish appropriate measures to protect genetic resources, traditional knowledge and traditional cultural expressions or folklore.

Article 9. Consultations

1. Either Party may at any time request consultations with the other Party with a view to seeking a timely and mutually satisfactory resolution in relation to any intellectual property issue, including enforcement, within the scope of this Chapter.
2. Such consultations shall be conducted through the contact points referred to in Article 4 and shall commence within 60 days of the receipt of the request for consultations, unless the Parties mutually determine otherwise. In the event that consultations fail to resolve any such issue, the requesting Party may refer the issue to the Joint Commission for consideration.
3. Any action taken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding.

Chapter 12. Government Procurement

Article 1. Objectives

The Parties recognise the importance of conducting government procurement in accordance with the fundamental principles of the APEC Non-Binding Principles on Government Procurement of transparency, value for money, open and effective competition, fair dealing, accountability and due process, and non-discrimination, in order to facilitate competitive opportunities for suppliers of the Parties.

Article 2. Scope and Coverage

1. This Chapter shall apply to government procurement measures regarding procurement, by any contractual means, including purchase, hire purchase, rental or lease, with or without an option to buy, build-operate-transfer contracts and public works concessions contracts:
(a) by entities listed in Annex I;
(b) in which the contract has a value not less than the relevant threshold converted into respective currencies as set out in Annex II estimated at the time of, or within a reasonable time prior to, the publication of a notice in accordance with Article 10; and
(c) subject to any other conditions specified in Annex I. (5)
2. This Chapter shall not apply to:
(a) the purchase or acquisition of goods and services by an entity of a Party from another entity of that Party, except where tenders are called, in which case this Chapter shall apply;
(b) procurement of goods and services (including construction) outside the Area of the procuring Party for consumption outside the Area of the procuring Party;
(c) non-contractual agreements or any form of assistance to persons or governmental authorities, including cooperative agreements, sponsorship arrangements, grants, loans, subsidies, equity infusions, guarantees, fiscal incentives and governmental provision of goods and services;
(d) procurement conducted:
(i) for the specific purpose of providing international assistance, including development aid;
(ii) under the particular procedure or condition of an international agreement relating to the stationing of troops or relating to the joint implementation of a project where that international agreement applies to a Party; or For greater certainty, nothing in this Chapter shall have the effect of obliging either Party to permit the supply of services in relation to government procurement covered by this Chapter in a manner that is inconsistent with that Party's Schedules to Annexes I and II to Chapter 13 (Trade in Services) and Annex I to Chapter 14 (Movement of Business Persons).
(iii) under the particular procedure or condition of an international organisation, or funded by international grants, loans, or other assistance where the applicable procedure or conditions would be inconsistent with this Chapter;
(e) the procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;
(f) hiring of government employees and related employment measures; or
(g) any procurement by an entity on behalf of an organisation that is not an entity.
3. Entities of each Party shall not prepare, design or otherwise structure or divide, at any stage of the procurement, any procurement in order to avoid the obligations of this Chapter.
4. In calculating the value of contracts for the purposes of implementing this Chapter, entities shall base their valuation on the estimated maximum total value of the procurement over its entire duration, including optional purchases, premiums, fees, commissions, interest or other forms of remuneration provided for in such contracts. For term contracts, the value of contracts may be taken as the estimated value of works in a 12 month period.

Article 3. Definitions

For the purposes of this Chapter:
(a) build-operate-transfer contract and public works concession contract mean any contractual arrangement the primary purpose of which is to provide for the construction or rehabilitation of physical infrastructure, plant, buildings, facilities or other government-owned works and under which, as consideration for a supplier's execution of a contractual arrangement, the entity grants to the supplier, for a specified period of time, temporary ownership or a right to control and operate, and demand payment for the use of such works for the duration of the contract;
(b) entity means an entity listed in Annex I;
(c) government procurement or procurement means the process by which entities obtain the use of or acquire goods or services or a combination of both;
(d) government procurement measure means any law, regulation, requirement or procedure of general application relating to government procurement;
(e) open tendering means a procurement method where all interested suppliers may submit a tender;
(f) publish means to disseminate information in an electronic or paper medium that is distributed widely and is readily accessible to the general public;
(g) qualified supplier means a supplier that an entity recognises as having satisfied the conditions for participation;
(h) selective tendering means a procurement method where only suppliers satisfying the conditions for participation are invited by the entity to submit a tender;
(i) supplier means a natural or juridical person of a Party that provides or could provide goods or services to an entity; and
(j) technical specification means a tendering requirement that:
(i) sets out the characteristics of:
(1) goods to be procured, such as quality, performance, safety and dimensions, or the processes and methods for their production; or
(2) services to be procured, or the processes and methods for their provision;
(ii) addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service; or
(iii) sets out conformity assessment procedures prescribed by an entity.

Article 4. Exceptions to this Chapter

1. Nothing in this Chapter shall be construed to prevent either Party from taking any action or not disclosing any information which it considers necessary for the protection of its essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes.
2. Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail or a disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to prevent either Party from adopting or maintaining measures:
(a) necessary to protect public morals, order or safety;
(b) necessary to protect human, animal or plant life or health;
(c) necessary to protect intellectual property; or
(d) relating to goods or services of persons with disabilities, of philanthropic institutions, or of prison labour.
3. The Parties understand that Paragraph 2(b) includes environmental measures necessary to protect human, animal or plant life or health.

Article 5. National Treatment and Non-discrimination

1. With respect to any government procurement measure regarding procurement covered by this Chapter, each Party shall grant to goods, services and suppliers of the other Party treatment no less favourable than that accorded by it to domestic goods, services and suppliers.
2. With respect to any government procurement measure regarding procurement covered by this Chapter, neither Party shall allow its entities to:
(a) treat a locally established supplier less favourably than another locally established supplier on the basis of the degree of foreign affiliation to, or ownership by a person of, the other Party; or
(b) discriminate against a locally established supplier on the basis that the goods or services offered by that supplier are goods or services of the other Party.
3. For the purposes of this Chapter, Article XVI(1) of the WTO Agreement on Government Procurement, including its footnote, is incorporated into and made part of this Chapter, mutatis mutandis.
4. This Article shall not apply to measures concerning customs duties and charges of any kind imposed on or in connection with importation, the method of levying such customs duties and charges, other import regulations, or to measures affecting trade in services other than government procurement measures specifically governing procurement covered by this Chapter.

Article 6. Rules of Origin

For procurement covered by this Chapter, each Party shall not apply rules of origin to goods or services imported from or supplied by the other Party that are different from the rules of origin the Party applies at the same time in the normal course of trade to imports or supplies of the same goods or services from the other Party.

Article 7. Non-disclosure of Information

1. The Parties, their entities and review authorities shall not, except to the extent required by law, disclose confidential information that would prejudice legitimate commercial interests of a particular supplier or that might prejudice fair competition between suppliers without the written authorisation of the supplier that provided the information.
2. Nothing in this Chapter shall be construed as requiring either Party, its entities or review authorities to disclose confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest.

Article 8. Publication of Information on Procurement

Each Party shall promptly publish:
(a) its government procurement measures covered by this Chapter; and
(b) any modifications to such government procurement measures, where possible in the same manner as the original publication.

Article 9. Procurement Procedures

Except as provided for in Article 15, entities shall award contracts by means of open or selective tendering procedures, in the course of which all interested suppliers or, in the case of selective tendering, suppliers invited to do so by an entity may submit a tender.

Article 10. Notice of Intended Procurement

1. Except as provided for in Article 15, for each procurement covered by this Chapter, entities shall publish in advance a notice of intended procurement inviting interested suppliers to submit a tender or apply to meet conditions for participation in the procurement.
2. The notice of intended procurement shall be published through means that are widely disseminated and afford non-discriminatory access to interested suppliers. Such notices shall remain readily accessible, through a single electronic point of access specified in Annex III, free of charge for the entire period established for tendering.
3. Each notice of intended procurement shall include:
(a) a description of the intended procurement;
(b) any conditions that suppliers must fulfill to particupate in the procurement;
(c) the time limits for submission of tenders or applications to participate; and 
(d) contact details for obtaining all relevant documents.
4. Each notice of intended procurement shall be published sufficiently in advance to provide interested suppliers with a reasonable period of time, in light of the nature, circumstances and complexity of the procurement, to obtain the full tender documentation and to prepare and submit responsive tenders by the closing date, or to apply for participation in the procurement where applicable.
5. The Parties agree that entities shall in no case provide less than ten days between the date on which the notice of intended procurement is published and the final date for the submission of tenders or applications to participate.

Article 11. Conditions for Participation

1. Where an entity requires suppliers to register, qualify, or satisfy any other conditions before being permitted to participate in a procurement, each Party shall ensure that a notice is published inviting suppliers to apply for registration or qualification or to demonstrate satisfaction of other conditions for participation.
2. The notice shall be published sufficiently in advance for interested suppliers to prepare and submit responsive applications and for the entity to evaluate and make its determinations based on such applications.
3. Any conditions for participation in the procurement, including the legal, commercial, technical and financial capacity of suppliers, as well as the verification of qualifications, shall be limited to those which are essential to ensure the supplier's capability to fulfil the contract in question.
4. The commercial, technical and financial capacity of a supplier shall be judged on the basis of both that supplier's global business activity and its activity in the Area of the procuring entity, taking due account of the legal relationship between the supply organisations.
5. Entities shall consider for a particular procurement those suppliers of the other Party that request to participate in the procurement and that are not yet registered or qualified, provided there is sufficient time to complete the registration or qualification procedures within the time period allowed for the submission of tenders.
6. Nothing in this Article shall preclude an entity from excluding a supplier from a procurement on grounds such as bankruptcy, liquidation or insolvency, false declarations relating to a procurement, or significant deficiency in the performance of any obligation under a prior contract.

Article 12. Lists of Registered or Qualified Suppliers

1. Entities may establish for continuing use a list of suppliers registered or qualified to participate in procurements.
2. Entities shall publish annually or otherwise make available continuously in electronic form a notice inviting interested suppliers to apply for inclusion on the list.
3. The notice shall include:
(a) a description of the goods and services for which the list may be used; and
(b) the conditions to be satisfied by suppliers for inclusion on the list.
4. Entities shall ensure that suppliers may apply for participation in the list at any time, and that all qualifying suppliers are included within a reasonable period, taking into account the conditions for participation and the need for verification.
5. Where entities require suppliers to qualify for such a list before being permitted to participate in a procurement, and a supplier that has not previously satisfied such requirements or conditions submits an application, the entity shall promptly start the registration or qualification process. The entity shall allow such supplier to participate in the procurement, provided there is sufficient time to complete the registration or procurement procedures within the time period allowed for the submission of tenders. 6. Entities shall notify qualified suppliers of the termination of or their removal from a list and, on request of a supplier, provide the supplier with written reasons for this action within a reasonable time.

Article 13. Technical Specifications

1. Each Party shall ensure that its entities do not prepare, adopt or apply any technical specification with the purpose or the effect of creating unnecessary obstacles to trade between the Parties.
2. Any technical specifications prescribed by an entity shall, where appropriate:
(a) be specified in terms of performance and functional requirements, rather than design or descriptive characteristics; and
(b) be based on international standards, where applicable, or otherwise on national technical regulations, recognised national standards, or building codes.
3. Each Party shall ensure that its entities do not prescribe technical specifications that require or refer 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. Each Party shall ensure that its entities do not seek or accept, in a manner that would have the effect of prejudicing fair competition, advice to 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 14. Tender Documentation

1. Tender documentation provided to suppliers shall contain all information necessary to enable them to prepare and submit responsive tenders, including the essential requirements and evaluation criteria for the award of the procurement contract.
2. Where entities do not offer direct access to the tender documentation by electronic means, entities shall promptly make available the tender documentation at the request of any interested or, as applicable, qualified supplier.
3. Entities shall endeavour to reply promptly to any reasonable request for relevant information or explanation made by a supplier, provided that such information does not give that supplier an advantage over other suppliers. The information or explanation given to a supplier may be provided to all participating suppliers known to the entity, in which case it shall be provided promptly.
4. Where an entity modifies the tender documentation, and that modification could impact on the preparation of tenders, it shall publish or transmit all such modifications in writing:
(a) to all suppliers who have requested tender documentation at the time the criteria are modified, and in the same manner as the original information was transmitted by the entity; and
(b) in adequate time to allow such suppliers to modify and resubmit their tenders, as appropriate.

Article 15. Exceptions to Open or Selective Tendering

1. Provided that the tendering procedure is not used to avoid competition or to protect domestic suppliers, entities may award contracts by means other than open or selective tendering procedures in any of the following circumstances:
(a) where, in response to a prior notice, invitation to participate, or invitation to tender under open or selective tendering procedures:
(i) no tenders were submitted;
(ii) no tenders were submitted that conform to the essential requirements in the tender documentation; or (iii) no suppliers satisfied the conditions for participation; and provided that the essential requirements of the procurement as set out in the tender documentation have not been substantially modified;
(b) where, for works of art, or for reasons connected with the protection of exclusive rights, such as patents or copyrights, or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;
(c) for additional deliveries by the original supplier which are intended either as replacement parts, extensions or continuing services for or upgrades of existing equipment, software, services or installations, where a change of supplier would compel the entity to procure goods or services not meeting requirements of interchangeability with existing equipment, software, services or installations, or conditions under original supplier warranties;
(d) for goods purchased on a commodity market;
(e) when an entity procures a prototype or a first good or service that is developed at its request in the course of, and for, a particular contract for research, experiment, study or original development. When such contracts have been fulfilled, subsequent procurements of such goods or services shall be subject to this Chapter;
(f) when additional construction services, which were not included in the initial contract but which were within the objectives of the original tender documentation, have, due to unforeseeable circumstances, become necessary to complete the construction services described therein, provided that the total value of contracts awarded for additional construction services does not exceed 50 percent of the amount of the main contract;
(g) in so far as it is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the entity and beyond its control, the goods or services could not be obtained in time by means of an open or selective tendering procedure;
(h) for purchases made under exceptionally advantageous conditions that only arise in the very short term, including public auction or unusual disposals, such as those resulting from liquidation, bankruptcy or receivership. This subparagraph is not intended to cover routine purchases from regular suppliers;
(i) in the case of a contract awarded to the winner of a design contest provided that the contest has been organised in a manner which is consistent with the principles of this Chapter and that the contest is judged by an independent jury with a view to a design contract being awarded to the winner; or
(j) for new construction services consisting of the repetition of similar construction services which conform to a basic project for which an initial contract was awarded, in accordance with the open or selective tendering procedures set out in this Chapter, and for which the entity has indicated in the notice of intended procurement concerning the initial construction service that procedures other than open or selective tendering procedures might be used in awarding contracts for such new construction services.
2. The Parties shall ensure that where entities resort to a procedure other than open or selective tendering based on the circumstances set forth in Paragraph 1, the entities shall maintain a written record or report setting out the circumstances and specific justifications for resorting to a procedure other than open or selective tendering.

Article 16. Awarding of Contracts

1. The Parties shall ensure that their entities receive, open and evaluate all tenders under procedures that guarantee the fairness and impartiality of the procurement process.
2. To be considered for award of a contract, a tender must, at the time of opening by the entity, conform to the essential requirements of the notice of intended procurement or tender documentation and be submitted by a supplier who complies with the conditions for participation.
3. Unless an entity determines that it is not in the public interest to award a contract, it shall award the contract to the supplier that has been determined to be fully capable of undertaking the contract and has submitted the tender that:
(a) offers the best value for money;
(b) offers the lowest price; or
(c) is the most advantageous
4. An entity shall not cancel a procurement covered by this Chapter, or terminate or modify awarded contracts, in order to circumvent the requirements of this Chapter. in terms of the essential requirements and evaluation criteria set forth in the tender documentation.

Article 17. Post-award Information

1. Entities shall promptly inform suppliers that have submitted a tender of the contract award decision.
2. Entities shall, on request from an unsuccessful supplier, promptly explain the reasons for the rejection of its tender or the relative advantages of the tender the entity selected.
3. Entities shall, promptly after the award of a contract for a procurement covered by this Chapter, publish a notice containing at least the following information:
(a) the name and address of the successful supplier;
(b) a description of the goods or services supplied; and
(c) the value of the contract award.

Article 18. Ensuring Integrity In Procurement Practices

Each Party shall ensure that criminal or administrative penalties exist to address corruption in its government procurement, and that its entities have in place policies and procedures to address any potential conflict of interest on the part of those engaged in or having influence over a procurement.

Article 19. Domestic Review of Supplier Complaints

1. Each Party shall ensure that its entities accord impartial and timely consideration to any complaints from suppliers regarding an alleged breach of measures or government procurement measures implementing this Chapter arising in the context of a procurement in which those suppliers have, or have had, an interest. Where appropriate, a Party may encourage suppliers to seek clarification from its entities with a view to facilitating the resolution of any such complaints.
2. Each Party shall provide suppliers of the other Party with non-discriminatory, timely, transparent and effective access to an administrative or judicial body competent to hear or review complaints of alleged breaches of the procuring Party's measures or government procurement measures implementing this Chapter arising in the context of procurements in which those suppliers have, or have had, an interest.
3. Each Party shall make information on complaint mechanisms generally available.
4. Where an administrative or judicial body may award compensation for any breach of measures or government procurement measures implementing this Chapter, such compensation may be limited to the costs for tender preparation reasonably incurred by the supplier for the purpose of the procurement.

Article 20. Use of Electronic Communications In Procurement

1. The Parties shall encourage their entities to provide opportunities for government procurement to be undertaken through the internet and shall encourage, to the extent possible, the use of electronic means for the provision of tender documentation and receipt of tenders.
2. In order to facilitate commercial opportunities for their suppliers under this Chapter, each Party shall maintain a single electronic point of access to comprehensive information on government procurement supply opportunities in its Area, including as set out in Paragraph 2 of Article 10, and information on government procurement measures, as set out in Article 8. The contact point or points from whom suppliers can obtain information on government procurement shall either be specified in Annex IV, or be set out in the information on the single electronic point of access.
3. Each Party shall encourage its entities to publish on the internet information regarding the entities' indicative procurement plans as early as possible in the fiscal year.

Article 21. Modifications and Rectifications of Annexes

1. Each Party may modify its Annexes to this Chapter in conformity with Paragraph 2 of Article 2 (Functions of the Joint Commission) of Chapter 17 (Administrative and Institutional Provisions) provided that it:
(a) notifies the other Party of the proposed modification; and
(b) provides the other Party appropriate compensatory adjustments to its coverage in order to maintain a level of coverage comparable to that existing prior to the modification.
2. Notwithstanding Paragraph 1(b), no compensatory adjustments shall be provided to the other Party where the modification by a Party of its Annexes concerns:
(a) rectifications of a purely formal nature and minor amendments to entity coverage and/or the single electronic point of access and/or contact points, made through an implementing arrangement in accordance with Paragraph 2 of Article 2 (Functions of the Joint Commission) of Chapter 17 (Administrative and Institutional Provisions); or
(b) one or more entities over which government control or influence has been effectively eliminated as a result of corporatisation and commercialisation or privatisation.

Chapter 13. Trade In Services

Article 1. Objectives

The objectives of this Chapter are to:
(a) facilitate the expansion of trade in services on a mutually advantageous basis;
(b) improve the efficiency and transparency of the Parties' respective services sectors and competitiveness of their export trade; and
(c) work toward progressive liberalisation, while recognising the right of each Party to regulate and introduce new regulations, and to provide and fund public services, in a manner that gives due respect to government policy objectives.

Article 2. Scope

1. This Chapter shall apply to measures adopted or maintained by a Party affecting trade in services. 2. This Chapter shall not apply to:
(a) government procurement;
(b) services supplied in the exercise of governmental authority;
(c) subsidies (10) provided by a Party or a state enterprise thereof, including government-supported loans, guarantees and insurance, or to any conditions attached to the receipt or continued receipt of such subsidies, whether or not such subsidies are offered exclusively to domestic services, service consumers or service suppliers, except as provided for in Article 11;
(d) measures affecting natural persons seeking access to the employment market of a Party; or
(e) measures regarding citizenship, nationality, residence or employment.
3. This Chapter shall not apply to measures affecting air transport services or related services in support of air services except that this Chapter shall apply to measures affecting:
(a) aircraft repair and maintenance services;
(b) the selling and marketing of air transport services; and
(c) computer reservation system services.
4. The Parties note the multilateral negotiations pursuant to the review of the GATS Annex on Air Transport Services. Upon the conclusion of such multilateral negotiations, the Parties shall conduct a review for the purpose of discussing appropriate amendments to this Agreement, so as to take into account the results of such multilateral negotiations.

Article 3. Definitions

For the purposes of this Chapter:
(a) aircraft repair and maintenance services means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and does not include so-called line maintenance;
(b) commercial presence means any type of business or professional establishment, including through the constitution, acquisition or maintenance of an enterprise, including a representative office, within the Area of a Party for the purpose of supplying a service;
(c) computer reservation system services means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;
(d) enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation and a branch of an enterprise;
(e) enterprise of a Party means an enterprise which is:
(i) organised or constituted under the law of that Party; or
(ii) in the case of the supply of a service through commercial presence, owned or controlled by:
(1) natural persons of that Party; or
(2) an enterprise of that Party identified under sub-subparagraph (i);
(f) government procurement means any law, regulation, requirement or procedure of general application governing the procurement by governmental agencies of services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the supply of services for commercial sale;
(g) measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form;
(h) measures adopted or maintained by a Party means measures taken by:
(i) central or local governments and authorities; and
(ii) non-governmental bodies in the exercise of powers delegated by central or local governments or authorities. Such measures include measures in respect of:
(1) the purchase, payment or use of a service;
(2) the access to and use of, in connection with the supply of a service, services which are required by a Party to be offered to the public generally;
(3) the presence, including commercial presence, of persons of a Party for the supply of a service in the Area of the other Party;
(i) monopoly supplier of a service means any person, public or private, which in the relevant market of the Area of a Party is authorised or established formally or in effect by that Party as the sole supplier of that service;
(j) natural person means:
(i) with respect to New Zealand, a New Zealand national or permanent resident under its domestic law; and (ii) with respect to Hong Kong, China, a permanent resident of the Hong Kong Special Administrative Region of the People's Republic of China under its domestic law;
(k) person means a natural person or an enterprise;
(l) selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services or the applicable conditions;
(m) service supplied in the exercise of governmental authority means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;
(n) service supplier of a Party means a person of a Party that supplies, or seeks to supply, a service; (11)
(o) services includes any service in any sector except services supplied in the exercise of governmental authority;
(p) state enterprise means an enterprise that is owned or controlled through ownership interests by a Party; (q) supply of a service includes the production, distribution, marketing, sale and delivery of a service; and
(r) trade in services means the supply of a service:
(i) from the Area of one Party into the Area of the other Party (Mode 1);
(ii) in the Area of one Party to the service consumer of the other Party (Mode 2);
(iii) by a service supplier of one Party, through commercial presence in the Area of the other Party (Mode 3); or
(iv) by a service supplier of one Party, through presence of natural persons of that Party in the Area of the other Party (Mode 4). Where the service is not supplied directly by an enterprise but through other forms of commercial presence such as a representative office, the service supplier (i.e. the enterprise) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers under this Chapter. Such treatment shall be extended to the presence through which the service is supplied and need not be extended to any other parts of the supplier located outside the Area where the service is supplied.

Article 4. Market Access

Neither Party shall, either on the basis of a regional sub-division or on the basis of its entire Area, adopt or maintain:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; (12)
(d) limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; and
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service. Subparagraph (c) does not cover measures of a Party which limit inputs for the supply of services.

Article 5. National Treatment

1. Each Party shall accord to services and service suppliers of the other Party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers. (13)
2. A Party may meet the requirement of Paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.
3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Party compared to the like services or service suppliers of the other Party.

Article 6. Local Presence

Neither Party may require a service supplier of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its Area as a condition for the supply of cross-border trade in services.

Article 7. Application of Articles 4, 5, 6 and 12

1. Articles 4, 5, 6 and 12 shall not apply to: Obligations assumed under this Article by a Party except as set out in its Schedules to Annexes I and II shall not be construed to require that Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.
(a) any existing non-conforming measure that is maintained by a Party at:
(i) the central level of government, as set out by that Party in its Schedule to Annex I; or 
(ii) a local level of government; 
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c)  an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 4, 5, 6 and 12. 

2. Articles 4, 5, 6 and 12 do not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out in its Schedule to Annex II.

Article 8. Review

The Parties shall consult within two years of entry into force of this Agreement and at least every three years thereafter, or as otherwise agreed, to review the implementation of this Chapter and consider other trade in services issues of mutual interest, with a view to the progressive liberalisation of the trade in services between them on a mutually advantageous basis.

Article 9. Domestic Regulation

1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Each Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of and, where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review.
3. Where authorisation is required for the supply of a service, the competent authorities of a Party shall:
(a) in the case of an incomplete application, at the request of the applicant, identify all the additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe;
(b) within a reasonable period of time after the submission of an application considered complete under domestic law, inform the applicant of the decision concerning the application;
(c) at the request of the applicant, provide, without undue delay, information concerning the status of the application; and
(d) if an application is terminated or denied, to the maximum extent possible, inform the applicant in writing and without delay the reasons for such action. The applicant will have the possibility of resubmitting, at its discretion, a new application.
4. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards, and licensing requirements and procedures do not constitute unnecessary barriers to trade in services, each Party shall ensure that any such measures that it adopts or maintains are:
(a) based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) not more burdensome than necessary to ensure the quality of the service;
(c) in the case of licensing procedures, not in themselves a restriction on the supply of the service; and
(d) subject to Paragraph 5 of Annex III, in compliance with the disciplines on domestic regulation in that Annex.
5. In determining whether a Party is in conformity with its obligations under Paragraph 4, account shall be taken of international standards of relevant international organisations (14) applied by that Party.
6. If the results of the negotiations related to Article VI(4) of GATS (or the results of any similar negotiations undertaken in other multilateral fora in which the Parties participate) enter into effect, the Parties shall jointly review such results. Where the joint review assesses that the incorporation of such results into this Agreement would improve or strengthen the disciplines contained herein, the Parties shall jointly The term "relevant international organisations" refers to the international bodies whose membership is open to the Parties. determine whether to incorporate such results into this Agreement.
7. Nothing in this Article and Annex III shall apply to any measure adopted or maintained by a Party consistent with its Schedules to Annexes I and II.

Article 10. 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 certification granted in the Area of the other Party.
2. Where a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met or licences or certification granted in the Area of a non-Party, nothing in Article 12 shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licences or certifications granted in the Area of the other Party.
3. A Party that is a party to an agreement or arrangement of the type referred to in Paragraph 2, whether existing or future, shall afford adequate opportunity for the other Party, upon request, to negotiate its accession to such an agreement or arrangement or to negotiate a comparable one with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education or experience obtained, requirements met, or licences or certifications granted in that other Party's Area should be recognised.
4. A Party shall not accord recognition in a manner which would constitute a means of discrimination between countries 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. The Parties agree to facilitate the establishment of dialogue between their regulators and/or relevant industry bodies with a view to the achievement of early outcomes on recognition of qualifications and/or professional registration.
6. Such recognition may be achieved through harmonisation, recognition of regulatory outcomes, recognition of qualifications and professional registration awarded by one Party as a means of complying with the regulatory requirements of the other Party (whether accorded autonomously or by mutual arrangement) or recognition arrangements concluded between the Parties and between industry bodies.

Article 11. Subsidies

Notwithstanding Paragraph 2(c) of Article 2:
(a) the Parties shall review the issue of disciplines on subsidies related to trade in services in the light of any disciplines agreed under Article XV of GATS, with a view to the incorporation of such disciplines into this Agreement; and
(b) a Party which considers that it is adversely affected by a subsidy of the other Party related to trade in services may request consultations on such matters. The Parties shall enter into such consultations.