Obligation Concerned: Cross-Border Trade (Article 10.6)
Letter terminating the agreement between australia and the republic of peru on the promotion and protection of investments
THE HON STEVEN CIOBO MP
Minister for Trade, Tourism and Investment
12 February 2018
The Honourable Mr. Eduardo Ferreyros Kiippers Minister of Foreign Trade and Tourism Peru
Dear Minister
In connection with the signing on this date of the Peru-Australia Free Trade Agreement (PAFTA), I have the honour to confirm the following understanding reached between the Government of Australia and the Government of Peru during the course of the negotiation of Chapter Eight (Investment), Chapter Nine (Cross-Border Trade in Services) and Chapter Ten (Financial Services):
In the interests of greater transparency, this is to notify the Government of Peru that upon the entry into force of PAFTA, the Government of Australia will initiate a review of the existing non-conforming measures at the regional level of government in relation to Annex I - Investment and Cross-Border Trade in Services and Annex III - Financial Services of PAFTA. The Government of Australia will inform the Government of Peru of the results of this review, including a list of individual non-conforming measures at the regional level of government, within 12 months of the date of entry into force of PAFTA.
I look forward to your letter in reply confirming that your Government shares this understanding.
Yours sincerely
Steven Ciobo
Parliament House Canberra ACT 2600 Australia Telephone (02) 6277 7420 E-mail Trade.Minister@dfat.gov.au
12 February 2018
The Honourable Mr. Steven Ciobo Minister for Trade, Tourism, and Investment Australia
Dear Minister,
I have the honour to acknowledge receipt of your Note of 12 February 2018, which reads as follows:
"In connection with the signing on this date of the Peru-Australia Free Trade Agreement (PAFTA), I have the honour to confirm the following understanding reached between the Government of Australia and the Government of Peru during the course of the negotiation of Chapter Eight (Investment), Chapter Nine (Cross-Border Trade in Services) and Chapter Ten (Financial Services):
In the interests of greater transparency, this is to notify the Government of Peru that upon the entry into force of PAFTA, the Government of Australia will initiate a review of the existing non-conforming measures at the regional level of government in relation to Annex I - Investment and Cross-Border Trade in Services and Annex III - Financial Services of PAFTA. The Government of Australia will inform the Government of Peru of the results of this review, including a list of individual non-conforming measures at the regional level of government, within 12 months of the date of entry into force of PAFTA."
I have the further honour to confirm that the above reflects the agreement reached between the Government of Peru and the Government of Australia during the course of negotiations on PAFTA, and your Note and this Note of confirmation in reply, both equally authentic in the Spanish and English languages, shall constitute an agreement between the Government of Peru and the Government of Australia.
THE HON STEVEN CIOBO MP
Minister for Trade, Tourism and Investment
The Honourable Ms. Lucia Cayetana Aljovin Gazzani
Minister of PERU
Foreign Affairs
Dear Minister
In connection with the signing on 12 February 2018 of the Peru-Australia Free Trade Agreement ("PAFTA"), I have the honour to confirm the following agreement reached between the Government of Australia and the Government of Peru (the "Parties") during the course of the negotiations on PAFTA:
(a) without prejudice to paragraph (b), the Parties agree to terminate the "Agreement between Australia and the Republic of Peru on the Promotion and Protection of Investments", done in Lima on 7 December 1995 (the "IPPA"™), on the date of entry into force of PAFTA (the "date of termination");
(b) the IPPA shall continue to apply for a period of five years from the date of termination to any investment (as defined in Article 1(1)(a) of the IPPA) which was made before the entry into force of PAFTA with respect to any act or fact that took place or any situation that existed before the date of termination;
(c) notwithstanding paragraph (b), an investor (as defined in Article 1(1)(c) of the IPPA) may only submit a claim under Article 13 of the [PPA (Settlement of disputes between a Party and an investor of the other Party) within three years of the date of termination; and
(d) the Parties agree that the provisions for termination of the IPPA contained in this Note shall, at the date of termination, supersede the provisions for termination contained in Article 16 of the IPPA.
I have the honour to propose that this Note and your Note of confirmation in reply, both equally authentic in the English and the Spanish languages, shal] constitute an agreement between the Parties ("the agreement of termination"), which shall enter into force on the date of termination.
Prior to the entry into force of this agreement of termination. each Party shall notify the other Party through diplomatic channels that its domestic requirements have been completed.
Yours sincerely
Steven Ciobo
MINISTERIO DE RELACIONES EXTERIORES DESPACHO MINISTERIAL
Nota RE (DPE) N° 6/4
Lima
The Honourable Mr. Steven Ciobo Minister for Trade, Tourism and Investment
Australia
Dear Minister,
I have the honour to acknowledge receipt of your Note of 26 January 2018, which reads as follows:
"In connection with the signing on 12 February 2018 of the Peru-Australia Free Trade Agreement ("PAFTA"), I have the honour to confirm the following agreement reached between the Government of Australia and the Government of Peru (the "Parties") during the course of the negotiations on PAFTA:
(a) without prejudice to paragraph (b), the Parties agree to terminate the "Agreement between Australia and the Republic of Peru on the Promotion and Protection of Investments", done in Lima on 7 December 1995, (the "IPPA"), on the date of entry into force of PAFTA (the "date of termination"):
(b) the IPPA shall continue to apply for a period of five years from the date of termination to any investment (as defined in Article 1(1)(a) of the IPPA) which was made before the entry into force of PAFTA with respect to any act or fact that took place or any situation that existed before the date of termination;
(c) notwithstanding paragraph (b), an investor (as defined in Article 1(1)(c) of the IPPA) may only submit a claim under Article 13 of the IPPA (Settlement of disputes between a Party and an investor of the other Party) within three years of the date of termination; and
(d) the Parties agree that the provisions for termination of the IPPA contained in this Note shall, at the date of termination, supersede the provisions for termination contained in Article 16 of the IPPA.
I have the honour to propose that this Note and your Note of confirmation in reply, both equally authentic in the English and the Spanish languages, shall constitute an agreement between the Parties ("the agreement of termination"), which shall enter into force on the date of termination.
Prior to the entry into force of this agreement of termination, each Party shall notify the other Party through diplomatic channels that its domestic requirements have been completed."
MINISTERIO DE RELACIONES EXTERIORES DESPACHO MINISTERIAL
I have the further honour to confirm that the above reflects the agreement reached between the Government of Peru and the Government of Australia during the course of negotiations on PAFTA, and your Note and this Note of confirmation in reply, both equally authentic in the Spanish and English languages, shall constitute an agreement between the Government of Peru and the Government of Australia.
Yours sincerely,
Cayetana Aljovin
Minister of Foreign Affairs