1. The implementation of cooperation and capacity building activities under this Chapter shall be subject to the availability of funds and resources of each Party and the applicable laws and regulations of each Party.
2. The Parties shall bear the costs of cooperation and capacity building activities under this Chapter, in an equitable manner to be mutually agreed by the Parties.
Article 20.6. Non-application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 27 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 21. Competitiveness and Business Facilitation
Article 21.1. Definitions
For the purposes of this Chapter:
supply chain means a cross-border network of enterprises operating together as an integrated system to design, develop, produce, market, distribute, transport, and deliver products and services to customers.
Article 21.2. Activities and Contact Points on Competitiveness and Business Facilitation
1. The Parties recognise that, in order to enhance the domestic, regional and global competitiveness of their economies, and to promote economic integration and development within the free trade area, their business environments must be responsive to market developments.
2. Each Party shall designate and notify a contact point on Competitiveness and Business Facilitation to facilitate communications between the Parties on any matter covered by this Chapter.
3. The contact points shall facilitate:
(a) discussion of effective approaches and develop information sharing activities to support efforts to establish a competitive environment that is conducive to the establishment of businesses, facilitates trade and investment between the Parties, and promotes economic integration and development within the free trade area;
(b) exploration of ways to take advantage of the trade and investment opportunities that this Agreement creates;
(c) identification and discussion of measures affecting, as well as best practices and experiences relevant to, the development and strengthening of supply chains;
(d) provision of advice and recommendations to the Joint Commission on ways to further enhance the competitiveness of the Parties' economies, including recommendations identifying ways to promote the development and strengthening of supply chains, aimed at enhancing the participation especially of SMEs;
(e) where appropriate, coordination of meetings between government representatives of each Party to address any matter covered by this Chapter; and
(f) engagement in other activities as the Parties may decide.
3. The Parties may also seek advice from, and consider the work of, appropriate experts, such as international donor institutions, enterprises and non-governmental organisations.
Article 21.3. Non-application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 27 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 22. Development
Article 22.1. General Provisions
1. The Parties affirm their commitment to promote and strengthen an open trade and investment environment that seeks to improve welfare, reduce poverty and inequalities, raise living standards and create new employment opportunities in support of sustainable development.
2. The Parties acknowledge the importance of development in promoting inclusive economic growth, as well as the instrumental role that trade and investment can play in contributing to economic development and prosperity. Inclusive economic growth includes a more broad-based distribution of the benefits of economic growth through the expansion of business and industry, the creation of sustainable livelihood and jobs, and the alleviation of poverty.
3. The Parties acknowledge that economic growth and development contribute to achieving the objectives of this Agreement, and that effective domestic coordination of trade, investment and development policies can contribute to sustainable growth.
4. The Parties recognise the potential for joint development activities by the Parties to reinforce efforts to achieve sustainable development goals.
5. The Parties also recognise that activities carried out under Chapter 20 (Cooperation and Capacity Building) are an important component of joint development activities.
Article 22.2. Promotion of Development
1. The Parties acknowledge the importance of each Party's leadership in implementing development policies, including policies that are designed for its nationals to maximise the use of the opportunities created by this Agreement.
2. The Parties further recognise that transparency, good governance and accountability contribute to the effectiveness of development policies.
Article 22.3. Broad-based Economic Growth
1. The Parties acknowledge that broad-based economic growth reduces poverty, enables sustainable delivery of basic services, and expands opportunities for people to live healthy and productive lives.
2. The Parties recognise that broad-based economic growth promotes peace, stability, democratic institutions, attractive investment opportunities, and effectiveness in addressing national and global challenges.
3. The Parties also recognise that generating and sustaining broad-based economic growth requires sustained high-level commitment by their governments to effectively and efficiently administer public institutions, invest in public infrastructure, welfare, health and education systems, and foster science, technology, innovation and entrepreneurship, and access to economic opportunity.
4. The Parties may enhance broad-based economic growth through policies that take advantage of trade and investment opportunities created by this Agreement in order to contribute to, among other things, sustainable development and the reduction of poverty. These policies may include those related to the promotion of market-based approaches aimed at improving trading conditions and access to finance for vulnerable areas or populations, and SMEs.
Article 22.4. Women and Economic Growth
1. The Parties recognise that enhancing opportunities in their territories for women, including workers and business owners, to participate in the domestic and global economy contributes to economic development. The Parties further recognise the benefit of sharing their diverse experiences in designing, implementing and strengthening programmes to encourage this participation.
2. Accordingly, the Parties shall consider undertaking cooperative activities aimed at enhancing the ability of women, including workers and business owners, to fully access and benefit from the opportunities created by this Agreement. These activities may include providing advice or training, such as through the exchange of officials, and exchanging information and experience on:
(a) programmes aimed at helping women build their skills and capacity, and enhancing their access to markets, science and technology, and financing;
(b) developing women's leadership networks; and
(c) identifying best practices related to workplace flexibility.
Article 22.5. Education, Science and Technology, Research and Innovation
1. The Parties recognise that the promotion and development of education, science and technology, research and innovation can play an important role in accelerating growth, enhancing competitiveness, creating jobs, and expanding trade and investment among the Parties.
2. The Parties further recognise that policies related to education, science and technology, research and innovation can help the Parties maximise the benefits derived from this Agreement. Accordingly, each Party may encourage the design of policies in these areas that take into consideration trade and investment opportunities arising from this Agreement, in order to further increase those benefits. Those policies may include initiatives with the private sector, including those aimed at developing relevant expertise and managerial skills, and enhancing enterprises' ability to transform innovations into competitive products and start-up businesses.
Article 22.6. Joint Development Activities
1. The Parties recognise that joint activities by the Parties to promote maximisation of the development benefits derived from this Agreement can reinforce national development strategies, including, where appropriate, through work with bilateral partners, private companies, academic institutions and non-governmental organisations.
2. Ona mutually agreed basis, the Parties shall endeavour to facilitate joint activities so that the benefits derived from this Agreement might more effectively advance each Party's development goals. These joint activities may include:
(a) discussion by the Parties to promote, where appropriate, alignment of Parties' development assistance and finance programmes with national development priorities;
(b) consideration of ways to expand engagement in science, technology and research to foster the application of innovative uses of science and technology, promote development and build capacity;
(c) facilitation of public and private sector partnerships that enable private enterprises, including SMEs, to bring their expertise and resources to cooperative ventures with government agencies in support of development goals; and
(d) involvement of the private sector, including philanthropic organisations and businesses, and non-governmental organisations in activities to support development.
Article 22.7. Contact Points on Development
1. Each Party shall designate and notify a contact point on Development to facilitate communications between the Parties on any matter covered by this Chapter.
2. The contact points shall facilitate:
(a) the exchange of information on the Parties' experiences regarding the formulation and implementation of national policies intended to derive the greatest possible benefits from this Agreement;
(b) the discussion of any proposals for future joint development activities in support of development policies related to trade and investment;
(c) the invitation, as appropriate, of international donor institutions, private sector entities, non-governmental organisations or other relevant institutions to assist in the development and implementation of joint development activities;
(d) the consideration of issues associated with the implementation and operation of this Chapter, with a view towards considering ways the Chapter may enhance the development benefits of this Agreement;
(e) where appropriate, the coordination of meetings between government representatives of each Party to address any matter covered by this Chapter; and
(f) other functions as the Parties may decide in respect of maximising the development benefits derived from this Agreement;
Article 22.8. Relation to other Chapters
In the event of inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.
Article 22.9. Non-application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 27 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 23. Small and Medium-sized Enterprises
Article 23.1. General Provisions
1. The Parties acknowledge the importance of promoting an environment that facilitates and supports the development, growth and competitiveness of SMEs, recognising their participation in domestic markets as well as in international trade, and their contribution in achieving inclusive economic growth, sustainable development and enhanced productivity.
2. The Parties recognise the importance of current initiatives, efforts and work on SMEs developed under the aegis of the OECD, WTO, APEC and any other relevant fora, and in taking into account their findings and recommendations, where appropriate.
3. The Parties also recognise the relevance of:
(a) working cooperatively to achieve progress in reducing 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 23.3. Information Sharing
1. Each Party shall establish or maintain its own publicly accessible website containing information regarding this Agreement, including:
(a) the text of this Agreement, including all Annexes, tariff schedules and product specific rules of origin;
(b) asummary 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 links to:
(a) the equivalent website of the other Party; and
(b) the websites of its government agencies 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 paragraph 2(b) may include:
(a) customs regulations and procedures;
(b) regulations and procedures concerning intellectual property rights;
(c) technical regulations, standards, and sanitary and phytosanitary measures relating to importation and exportation;
(d) foreign investment regulations;
(e) business registration procedures;
(f )employment regulations; and
(g) taxation information.
4. Each Party shall regularly 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.
Article 23.3. Activities and Contact Points on Smes
1. Each Party shall designate and notify a contact point on SMEs, to facilitate communications between the Parties on any matter covered by this Chapter.
2. Where appropriate, the contact points shall facilitate the coordination of meetings between government representatives of each Party to address any matter covered by this Chapter.
3. The Parties shall, to the extent possible:
(a) discuss ways to assist SMEs of the Parties to take advantage of the commercial opportunities under this Agreement, including but not limited to, considering ways to develop mechanisms in order to foster partnerships and the development of productive chains;
(b) exchange and discuss each Party's experiences and best practices in supporting and assisting SME exporters with respect to, among other things, training programmes, trade education, trade finance, identifying commercial partners between the Parties and establishing good business credentials;
(c) facilitate access to trade promotion networks, business fora, business cooperation instruments, and any other relevant information for SME exporters;
(d) promote seminars, workshops or other activities to inform SMEs of the benefits available to them under this Agreement;
(e) explore opportunities for capacity building to assist each Party in developing and enhancing SME export counselling, assistance and training programmes;
(f) explore opportunities for the development of programmes to assist SMEs to participate and integrate effectively into the global supply chain;
(g) exchange information to assist in monitoring the implementation of this Agreement as it relates to SMEs;
(h) facilitate provision of recommendations to the Joint Commission; and
(i) consider any other matter pertaining to SMEs, including any issues raised by SMEs regarding their ability to benefit from this Agreement.
4. The Parties may seek to collaborate with appropriate experts and international donor organisations in carrying out their programmes and activities.
Article 23.4. Non-application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 27 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 24. Regulatory Coherence
Article 24.1. Definitions
For the purposes of this Chapter:
covered regulatory measure means a regulatory measure determined by each Party to be subject to this Chapter in accordance with Article 24.3; and
regulatory measure means a measure of general application related to any matter covered by this Agreement adopted by regulatory agencies with which compliance is mandatory.
Article 24.2. General Provisions
1. For the purposes of this Chapter, regulatory coherence refers to the use of good regulatory practices in the process of planning, designing, issuing, implementing and reviewing regulatory measures in order to facilitate achievement of domestic and international policy objectives, and in efforts across governments to enhance regulatory cooperation in order to further those objectives and promote international trade and investment, economic growth and employment.
2. The Parties affirm the importance of:
(a) sustaining and enhancing the benefits of this Agreement through regulatory coherence in terms of facilitating increased trade in goods and services and increased investment between the Parties;
(b) each Party's sovereign right to identify its regulatory priorities and establish and implement regulatory measures to address these priorities, at the levels that the Party considers appropriate;
(c) the role that regulation plays in achieving public policy objectives;
(d) taking into account input from interested persons in the development of regulatory measures; and
(e) developing regulatory cooperation and capacity building between the Parties.
Article 24.3. Scope of Covered Regulatory Measures
Each Party shall promptly, and no later than two years after the date of entry into force of this Agreement, determine and make publicly available the scope of its covered regulatory measures. In determining the scope of covered regulatory measures, each Party should aim to achieve significant coverage.
Article 24.4. Coordination and Review Processes or Mechanisms
1. The Parties recognise that regulatory coherence can be facilitated through domestic mechanisms that increase interagency consultation and coordination associated with processes for developing regulatory measures. Accordingly, each Party shall endeavour to ensure that it has processes or mechanisms to facilitate the effective interagency coordination and review of proposed covered regulatory measures. Each Party should consider establishing and maintaining a national or central coordinating body for this purpose.
2. The Parties recognise that while the processes or mechanisms referred to in paragraph 1 may vaty between them depending on their respective circumstances (including differences in levels of development and political and institutional structures), they should generally have as overarching characteristics the ability to:
(a) review proposed covered regulatory measures to determine the extent to which the development of such measures adheres to good regulatory practices, which may include but are not limited to those set out in Article 24.5 and make recommendations based on that review;
(b) strengthen consultation and coordination among domestic agencies so as to identify potential overlap and duplication and to prevent the creation of inconsistent requirements across agencies;
(c) make recommendations for systemic regulatory improvements; and
(d) publicly report on regulatory measures reviewed, any proposals for systemic regulatory improvements, and any updates on changes to the processes and mechanisms referred to in paragraph 1.
3. Each Party should generally produce documents that include descriptions of those processes or mechanisms and that can be made available to the public.
Article 24.5. Implementation of Core Good Regulatory Practices
1. To assist in designing a measure to best achieve the Party's objective, each Party should generally encourage relevant regulatory agencies, consistent with its laws and regulations, to conduct regulatory impact assessments when developing proposed covered regulatory measures that exceed a threshold of economic impact, or other regulatory impact, where appropriate, as established by the Party. Regulatory impact assessments may encompass a range of procedures to determine possible impacts.
2. Recognising that differences in the Parties' institutional, social, cultural, legal and developmental circumstances may result in specific regulatory approaches, regulatory impact assessments conducted by a Party should, among other things:
(a) assess the need for a regulatory proposal, including a description of the nature and significance of the problem;
(b) examine feasible alternatives, including, to the extent possible and consistent with laws and regulations, their costs and benefits, such as risks involved as well as distributive impacts, recognising that some costs and benefits are difficult to quantify and monetise;
(c) explain the grounds for concluding that the selected alternative achieves the policy objectives in an efficient manner, including, if appropriate, reference to the costs and benefits and the potential for managing risks; and
(d) rely on the best reasonably obtainable existing information including relevant scientific, technical, economic or other information, within the boundaries of the authorities, mandates and resources of the particular regulatory agency.
3. When conducting regulatory impact assessments, a Party may take into consideration the potential impact of the proposed regulation on SMEs.
4. Each Party should ensure that new covered regulatory measures are plainly written and are clear, concise, well organised and easy to understand, recognising that some measures address technical issues and that relevant expertise may be needed to understand and apply them.
5. Subject to its laws and regulations, each Party should ensure that relevant regulatory agencies provide public access to information on new covered regulatory measures and, where practicable, make this information available online.
6. Each Party should review, at intervals it deems appropriate, its covered regulatory measures to determine whether specific regulatory measures it has implemented should be modified, streamlined, expanded or repealed so as to make the Party's regulatory regime more effective in achieving the Party's policy objectives.
7. Each Party should, in a manner it deems appropriate, and consistent with its laws and regulations, provide annual public notice of any covered regulatory measure that it reasonably expects its regulatory agencies to issue within the following 12-month period.
8. To the extent appropriate and consistent with its laws and regulations, each Party should encourage its relevant regulatory agencies to consider regulatory measures in the other Party, as well as relevant developments in international, regional and other fora when planning covered regulatory measures.
Article 24.6. Contact Points
Each Party shall designate and notify a contact point on Regulatory Coherence to facilitate communications between the Parties on any matter covered by this Chapter.
Article 24.7. Cooperation
1. The Parties shall use their best endeavours to cooperate in order to facilitate the implementation of this Chapter and to maximise the benefits arising from it. Cooperation activities shall take into consideration each Party's needs, and may include:
(a) information exchanges, dialogues or meetings;
(b) information exchanges, dialogues or meetings with interested persons, including with SMEs;
(c) training programmes, seminars and other relevant assistance;