This Chapter shall apply to the territory of Japan and to the territory of the Republic of Singapore (hereinafter referred to in this Agreement as "Singapore").

Article 57. Sectoral Annexes

1. In case of conflict between the provisions of Part A of a Sectoral Annex and Articles 45 to 57, the provisions of Part A of the Sectoral Annex shall prevail.
2. If a Party introduces new or additional conformity assessment procedures within the same product coverage to satisfy the requirements set out in the applicable laws,regulations and administrative provisions specified in the relevant Sectoral Annex, Part B of the Sectoral Annex shall be amended to set out the applicable laws, regulations and administrative provisions stipulating such new or additional conformity assessment procedures, in accordance with the procedures set out in Article 151.

Section CHAPTER 7. Trade In Services

Article 58. Scope of and Definitions Under Chapter 7

1. This Chapter shall apply to measures by the Parties affecting trade in services.
2. In respect of air transport services, this Agreement shall not apply to measures affecting traffic rights,however granted; or to measures affecting services directly related to the exercise of traffic rights, other than measures affecting: 
(a) aircraft repair and maintenance services;
(b) the selling and marketing of air transport services; and
(c) computer reservation system services.
3. This Chapter shall not apply to cabotage in maritime transport services.
4. Annexes IV A and IV B provide supplementary provisions to this Chapter with respect to measures affecting the supply of financial services and of telecommunications services respectively.
5. Government procurement of services shall be governed by Chapter 11.
6. For the purposes of this Chapter:
(a) the term "measure" means any measure by a Party,including those of taxation, whether in the form of a law, regulation, rule, procedure, decision,administrative action or any other form;
(b) the term "supply of a service" includes the production, distribution, marketing, sale and delivery of a service;
(c) the term "measures by a Party affecting trade in services" includes measures in respect of:
(i) the purchase, payment or use of a service;
(ii) 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;
(iii) the presence, including commercial presence,of persons of a Party for the supply of a service in the territory of the other Party;
(d) the term "commercial presence" means any type of business or professional establishment, including through:
(i) the constitution, acquisition or maintenance of a juridical person; or
(ii) the creation or maintenance of a branch or a representative office; within the territory of a Party for the purpose of supplying a service;
(e) the term "sector" of a service means:
(i) with reference to a specific commitment, one or more, or all, sub sectors of that service,as specified in a Party's Schedule of specific commitments in Annex IV C; or
(ii) otherwise, the whole of that service sector,including all of its subsectors;
(f) the term "service supplier" means any person that supplies a service;(Note) Note: Where the service is not supplied directly by a juridical person but through other forms of commercial presence such as a branch or are presentative office, the service supplier (i.e.the juridical person) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers. 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 territory where the service is supplied.
(g) the term "service consumer" means any person that receives or uses a service;
(h) the term "service of the other Party" means a service which is supplied:
(i) from or in the territory of the other Party,or in the case of maritime transport, by a vessel registered under the laws of the other Party, or by a person of the other Party which supplies the service through the operation of a vessel or its use in whole or in part; or
(ii) in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of the other Party;
(i) the term "person" means either a natural person or a juridical person;
(j) the term "service supplier of the other Party"means any natural person of the other Party or juridical person of the other Party, that supplies a service;
(k) the term "natural person of the other Party"means a natural person who resides in the territory of the other Party or elsewhere and who under the law of the other Party:
(i) in respect of Japan, is a national of Japan;and
(ii) in respect of Singapore, is a national of Singapore or has the right of permanent residence in Singapore;
(l) the term "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation,trust, partnership, joint venture, sole proprietorship or association;
(m) the term "juridical person of the other Party"means a juridical person which is either:
(i) constituted or otherwise organised under the law of the other Party and, if it is owned or controlled by natural persons of non-Parties or juridical persons constituted or otherwise organised under the law of non-Parties, is engaged in substantive business operations in the territory of either Party;or
(ii) in the case of the supply of a servicethrough commercial presence, owned or controlled by:
(A) natural persons of the other Party; or
(B) juridical persons of the other Party identified under sub-paragraph (i)above;
(n) a juridical person is:
(i) "owned" by persons of a Party if more than 50 percent of the equity interest in it is beneficially owned by persons of that Party;
(ii) "controlled" by persons of a Party if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(iii) "owned by natural persons of non-Parties" if more than 50 percent of the equity interest in it is beneficially owned by natural persons of non-Parties;
(iv) "controlled by natural persons of non-Parties" if such natural persons have the power to name a majority of its directors or otherwise to legally direct its actions;
(v) "affiliated" with another person when it controls, or is controlled by, that other person; or when it and the other person are both controlled by the same person;
(o) the term "trade in services" means the supply of a service:
(i) from the territory of one Party into the territory of the other Party ("cross-bordermode");
(ii) in the territory of one Party to the service consumer of the other Party ("consumption abroad mode");
(iii) by a service supplier of one Party, through commercial presence in the territory of the other Party ("commercial presence mode");
(iv) by a service supplier of one Party, through presence of natural persons of that Party in the territory of the other Party ("presence of natural persons mode");
(p) the term "measures by a Party" means measures taken by:
(i) central or local governments; and
(ii) non-governmental bodies in the exercise of powers delegated by central or local governments; in fulfilling its obligations and commitments under this Chapter, each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Chapter by its local governments and nongovernmental bodies in the exercise of powers delegated by its central or local governments within its territory;
(q) the term "services" includes any service in any sector except services supplied in the exercise of governmental authority; (r) the term "a 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;
(s) the term "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;
(t) the term "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 nor the applicable conditions;
(u) the term "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;
(v) the term "traffic rights" means the rights for scheduled and non-scheduled services to operate or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Party, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership and control;
(w) the term "monopoly supplier of a service" means any person, public or private, which in the relevant market of the territory of a Party is authorised or established formally or in effect by that Party as the sole supplier of that service; and
(x) the term "direct taxes" comprises all taxes on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates,inheritances and gifts, and taxes on the total amounts of wages or salaries paid by enterprises,as well as taxes on capital appreciation.

Article 59. Market Access

1. With respect to market access through the modes of supply defined in sub-paragraph (o) of paragraph 6 of Article 58 above, each Party shall accord services and service suppliers of the other Party treatment no less favourable than that provided for under the terms,limitations and conditions agreed and specified in its Schedule of specific commitments in Annex IV C. (Note) Note: If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in (i) of sub-paragraph (o) of paragraph 6 of Article 58 above and if the cross-border movement of capital is an essential part of the service itself, that Party is thereby committed to allow such movement of capital. If a Party undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in (iii) of sub-paragraph (o) of paragraph 6 of Article 58 above, it is thereby committed to allow related transfers of capital into its territory.
2. In sectors where market-access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule of specific commitments in AnnexIV C, are defined as:
(a) limitations on the number of service suppliers whether in the form of numerical quotas,monopolies, exclusive service suppliers or the requirements 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;(Note) Note: Sub-paragraph (c) of paragraph 2 of Article 59 does not cover measures of a Party which limit inputs for the supply of services.
(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;
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and
(f) limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value  of individual or aggregate foreign investment.

Article 60. National Treatment Under Chapter 7

1. In the sectors inscribed in its Schedule of specific commitments in Annex IV C, and subject to any conditions and qualifications set out therein, 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.

2. A Party may meet the requirement of paragraph 1 above 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 a Party compared to like services or service suppliers of the other Party.
4. A Party may not invoke paragraphs 1, 2 and 3 above under Chapter 21 with respect to a measure of the other Party that falls within the scope of an international agreement between them relating to the avoidance of double taxation.

Article 61. Additional Commitments

The Parties may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles 59 and 60 above, including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a Party's Schedule of specific commitments in Annex IV C.

Article 62. Service Suppliers of Any Non-party

Each Party shall also accord treatment granted under this Chapter to a service supplier other than those of the Parties, that is a juridical person constituted under the laws of either Party, and who supplies a service through commercial presence, provided that it engages in substantive business operations in the territory of either Party.

Article 63. Schedule of Specific Commitments Under Chapter 7

1. Each Party shall set out in a schedule the specific commitments it undertakes under Articles 59, 60 and 61.With respect to sectors where such commitments are undertaken, each Schedule of specific commitments in AnnexIV C shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments;and (d) where appropriate, the time-frame for implementation of such commitments.
2. Measures inconsistent with both Articles 59 and 60 shall be inscribed in the column relating to Article 59.This inscription will be considered to provide a condition or qualification to Article 60 as well.
3. Schedules of specific commitments shall be annexed to this Agreement as Annex IV C.
4. (a) If a Party has entered into an international agreement on trade in services with a non-Party,or enters into such an agreement after this Agreement comes into force, it shall favourably consider according to services and service suppliers of the other Party, treatment no less favourable than the treatment that it accords to like services and service suppliers of that non-Party pursuant to such an agreement.
(b) An international agreement referred to in subparagraph (a) above shall not include an agreement on the avoidance of double taxation or provisions on the avoidance of double taxation in any other international agreement or arrangement by which the Party is bound.

Article 64. Domestic Regulation

1. In sectors where specific commitments are undertaken, 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 of the other Party, 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. The provisions of paragraph 2 above shall not be construed to require a Party to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.
4. Where authorisation is required for the supply of a service on which a specific commitment has been made, the competent authorities of a Party shall, within a reasonable period of time after the submission of an application considered complete under that Party's domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of the Party shall provide, without undue delay, information concerning the status of the application.
5. In sectors where a Party has undertaken specific commitments subject to any terms, limitations, conditions or qualifications set out therein, the Party shall not apply licensing and qualification requirements and technical standards that nullify or impair such specific commitments in a manner which:
(a) does not comply with the following criteria:
(i) based on objective and transparent criteria, such as competence and the ability to supply the service;
(ii) not more burdensome than necessary to ensure the quality of the service; or
(iii) in the case of licensing procedures, not in themselves a restriction on the supply of the service; and
(b) could not reasonably have been expected of that Party at the time the specific commitments in those sectors were made.
6. In determining whether a Party is in conformity with its obligations under paragraph 5 above, account shall be taken of international standards of relevant international organisations (Note) applicable to that Party. 

Article 65. Monopolies and Exclusive Service Suppliers

1. Each Party shall ensure that any monopoly supplier of a service in its territory does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with the Party's specific commitments.
2. Where a Party's monopoly supplier competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights and which is subject to that Party's specific commitments, the Party shall ensure that such a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with such commitments.
3. If a Party has reason to believe that a monopoly supplier of a service of the other Party is acting in a manner inconsistent with paragraph 1 or 2 above, it may request the other Party to provide specific information concerning the relevant operations.
4. The provisions of this Article shall also apply to cases of exclusive service suppliers, where a Party, formally or in effect:
(a) authorises or establishes a small number of service suppliers; and
(b) substantially prevents competition among those suppliers in its territory.

Article 66. Business Practices

1. The Parties recognise that certain business practices of service suppliers, other than those falling under Article 65 above, may restrain competition and thereby restrict trade in services.
2. A Party shall, at the request of the other Party, enter into consultations with a view to eliminating practices referred to in paragraph 1 above. The Party addressed shall accord full and sympathetic consideration to such a request and shall co-operate through the supply of publicly available non-confidential information of relevance to the matter in question. The Party addressed shall also provide other information available to the requesting Party, subject to its domestic law and to the conclusion of a satisfactory agreement concerning the safeguarding of its confidentiality by the requesting Party.

Article 67. Payments and Transfers

1. Except under the circumstances envisaged in Article 68below, a Party shall not apply restrictions on international transfers and payments for current transactions relating to its specific commitments.
2. Nothing in this Chapter shall affect the rights and obligations of the Parties as members of the International Monetary Fund (hereinafter referred to in this Chapter as"the Fund") under the Articles of Agreement of the Fund, including the use of exchange actions which are in conformity with the Articles of Agreement of the Fund, provided that a Party shall not impose restrictions on any capital transactions inconsistently with its specific commitments regarding such transactions, except under Article 68 below, or at the request of the Fund.

Article 68. Restrictions to Safeguard the Balance of Payments Under Chapter 7

1. In the event of serious balance-of-payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.
2. The restrictions referred to in paragraph 1 above:
(a) shall not discriminate between the Parties;
(b) shall ensure that the other Party is treated as favourably as any non-Party;
(c) shall be consistent with the Articles of Agreement of the Fund;
(d) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party;
(e) shall not exceed those necessary to deal with the circumstances described in paragraph 1 above; and (f) shall be temporary and be phased out progressively as the situation specified in paragraph 1 above improves.
3. In determining the incidence of such restrictions, a Party may give priority to the supply of services which are more essential to their economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector.
4. Any restrictions adopted or maintained under paragraph1 of this Article, or any changes therein, shall be promptly notified to the other Party.
5. Where a Party has adopted restrictions pursuant to paragraph 1 of this Article:
(a) that Party shall commence consultations with the other Party promptly in order to review the restrictions adopted by the former Party;
(b) the restrictions shall be subjected to annual review through further consultations, beginning one year after the date that the consultations referred to in sub-paragraph (a) above commenced. At these consultations, all restrictions applied for balance-of-payments purposes shall be reviewed. The Parties may also agree to a different frequency of such consultations;
(c) such consultations shall assess the balance-of payments situation of the Party concerned and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors as:
(i) the nature and extent of the balance-of payments and the external financial difficulties;
(ii) the external economic and trading environment of the consulting Party; and
(iii) alternative corrective measures which may be available;
(d) the consultations shall address the compliance of the restrictions with paragraph 2 of this Article, in particular the progressive phaseout of restrictions in accordance with sub-paragraph (f)of paragraph 2 of this Article; and
(e) in such consultations, all findings of statistical and other facts presented by the Fund relating to foreign exchange, monetary reserves and balance-of-payments, shall be accepted and conclusions shall be based on the assessment by the Fund of the balance-of-payments and the external financial situation of the consulting Party.

Article 69. General Exceptions Under Chapter 7

1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination against the other Party, or a disguised restriction on trade in services between the Parties, nothing in this Chapter shall be construed to prevent the adoption or enforcement by either Party of measures:
(a) necessary to protect public morals or to maintain public order; (Note)

(b) necessary to protect human, animal or plant life or health;
(c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to:
(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;
(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
(iii) safety;
(d) inconsistent with Article 60, provided that the difference in treatment is aimed at ensuring the equitable or effective (Note) imposition or collection of direct taxes in respect of services or service suppliers of the other Party.

2. In the application of paragraph 1 above, the relevant interpretations and operation of the WTO Agreement shall, where appropriate, be taken into account.

Article 70. Denial of Benefits

A Party may deny the benefits of this Chapter:
(a) to the supply of any service, if it establishes that the service is supplied from or in the territory of a non-Party;
(b) in the case of the supply of a maritime transport service, if it establishes that the service is supplied:
(i) by a vessel registered under the laws of anon-Party, and
(ii) by a person which operates or uses the vessel in whole or in part but which is of anon-Party;
(c) to any service supplier that is a juridical person, if it establishes that the service supplier is neither a "service supplier of the other Party" as defined in sub-paragraph (j) of paragraph 6 of Article 58 nor a "service supplier other than those of the Parties" granted benefits under Article 62.

Section CHAPTER 8. Investment

Article 71. Scope of Chapter 8

1. This Chapter shall apply to measures adopted ormaintained by a Party relating to:
(a) investors of the other Party in the territory ofthe former Party; and
(b) investments of investors of the other Party inthe territory of the former Party.
2. This Chapter shall not apply to government procurement.
3. Movement of natural persons who are investors shall begoverned by Chapter 9.

Article 72. Definitions Under Chapter 8

For the purposes of this Chapter:
(a) the term "investments" means every kind of asset owned or controlled, directly or indirectly, by an investor, including:
(i) an enterprise;
(ii) shares, stocks or other forms of equity participation in an enterprise, including rights derived therefrom;
(iii) bonds, debentures, and loans and other forms of debt, (Note) including rights derived the refrom;
(iv) rights under contracts, including turnkey, construction, management, production or revenue-sharing contracts;
(v) claims to money and claims to any performance under contract

(vi) intellectual property rights, including trademarks, industrial designs, layout-designs of integrated circuits, copyrights, patents, trade names, indications of source or geographical indications and undisclosed information;
(vii) rights conferred pursuant to laws and regulations or contracts such as concessions, licences, authorisations, and permits; and
(viii) any other tangible and intangible, movable and immovable property, and any related property rights, such as leases, mortgages, liens and pledges;
(b) the term "investments" also includes amounts yielded by investments, in particular, profit, interest, capital gains, dividends, royalties and fees. A change in the form in which assets are invested does not affect their character as investments;
(c) the term "investor" means any person that seeks to make, is making, or has made, investments;
(d) the term "person" means either a natural person or an enterprise;
(e) the term "investor of the other Party" means any natural person of the other Party or any enterprise of the other Party;
(f) the term "natural person of the other Party"means a natural person who resides in the territory of the other Party or elsewhere and who under the law of the other Party:
(i) in respect of Japan, is a national of Japan;and
(ii) in respect of Singapore, is a national of Singapore or has the right of permanent residence in Singapore;
(g) the term "enterprise" means any legal person or any other entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-ownedor controlled or governmentally-owned or controlled, including any corporation, trust, partnership, joint venture, sole proprietorship, association, organisation, company or branch;
(h) the term "enterprise of the other Party" means any enterprise duly constituted or otherwise organised under applicable law of the other Party, except an enterprise owned or controlled by persons of non-Parties and not engaging in substantive business operations in the territory of the other Party; and
(i) an enterprise is:
(i) "owned" by persons of non-Parties if more than 50 percent of the equity interest in itis beneficially owned by persons of non-Parties; and
(ii) "controlled" by persons of non-Parties if such persons have the power to name amajority of its directors or otherwise to legally direct its actions.

Article 73. National Treatment Under Chapter 8

Each Party shall within its territory accord to investors of the other Party and to their investments in relation to the establishment, acquisition, expansion, management, operation, maintenance, use, possession, liquidation, sale, or other disposition of investments, treatment no less favourable than the treatment which it accords in like circumstances to its own investors and investments (hereinafter referred to in this Chapter as"national treatment").

Article 74. Access to the Courts of Justice

Each Party shall within its territory accord to investors of the other Party treatment no less favourable than the treatment which it accords in like circumstances to its own investors, with respect to access to its courts of justice and administrative tribunals and agencies in all degrees of jurisdiction both in pursuit and in defence of such investors' rights.

Article 75. Prohibition of Performance Requirements

1. Neither Party shall impose or enforce any of the following requirements as a condition for the establishment, acquisition, expansion, management, operation, maintenance, use or possession of investments in its territory of an investor of the other Party:
(a) to export a given level or percentage of goods or services;
(b) to achieve a given level or percentage of domestic content;
(c) to purchase or use goods produced or services provided in the territory of the former Party, or to purchase goods or services from natural or legal persons in the territory of the former Party;
(d) to relate the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investments;
(e) to restrict sales of goods or services in the territory of the former Party that such investments produce or provide by relating such sales to the volume or value of its exports or foreign exchange earnings;
(f) to transfer technology, a production process or other proprietary knowledge to a natural or legal person of the former Party, except when the requirement:
(i) is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or
(ii) concerns the transfer of intellectual property which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
(g) to locate its headquarters for a specific region or the world market in the territory of the former Party;
(h) to achieve a given level or value of research and development in the territory of the former Party;or
(i) to supply one or more of the goods that it produces or the services that it provides to a specific region outside the territory of the former Party exclusively from the territory of the former Party.
2. Each Party is not precluded by paragraph 1 above from conditioning the receipt or continued receipt of an advantage, in connection with investments in its territory of an investor of the other Party, on compliance with any of the requirements set forth in sub-paragraphs (f) through (i) of paragraph 1 above.
3. Nothing in this Article shall be construed so as to derogate from the obligations of the Parties under the Agreement on Trade Related Investment Measures in Annex 1Ato the WTO Agreement.

Article 76. Specific Exceptions

1. Articles 73 and 75 shall not apply to investors and investments, in respect of:
(a) any exception specified by the Parties in Annexes V A and V B; and
(b) an amendment or modification to any exception referred to in sub-paragraph (a) above, provided that the amendment or modification does not decrease the level of conformity of the exception with Articles 73 and 75.
2. The exceptions referred to in sub-paragraph (a) of paragraph 1 above shall include the following elements, to the extent that these elements are applicable:
(a) sector or matter;
(b) obligation or article in respect of which the exception is taken;
(c) legal source or authority of the exception; and
(d) succinct description of the exception.
3. If a Party makes an amendment or modification referred to in sub-paragraph (b) of paragraph 1 of this Article, that Party shall, prior to the implementation of the amendment or modification, or in exceptional circumstances, as soon as possible thereafter:
(a) notify the other Party of the elements set out in paragraph 2 above; and
(b) provide to the other Party, upon request, particulars of the amended or modified exception.
4. Each Party shall endeavour, where appropriate, to reduce or eliminate the exceptions specified in Annexes V A and V B respectively.

Article 77. Expropriation and Compensation

1. Each Party shall accord to investments in its territory of investors of the other Party fair and equitable treatment and full protection and security.
2. Neither Party shall expropriate or nationalise investments in its territory of an investor of the other Party or take any measure equivalent to expropriation or nationalisation (hereinafter referred to in this Chapter as"expropriation") except for a public purpose, on a nondiscriminatory basis, in accordance with due process of law, and upon payment of compensation in accordance with this Article.
3. Compensation shall be equivalent to the fair market value of the expropriated investments. The fair market value shall not reflect any change in market value occurring because the expropriation had become publicly known earlier, but may, insofar as such expropriation relates to land, reflect the market value before the expropriation occurred, the trend in the market value, and adjustments to the market value in accordance with the laws of the expropriating Party concerning expropriation.
4. The compensation shall be paid without delay and shall carry an appropriate interest taking into account the length of time from the time of expropriation until the time of payment. It shall be effectively realisable and freely transferable and shall be freely convertible, at the market exchange rate prevailing on the date of the expropriation, into the currency of the Party of the investors concerned and freely usable currencies defined in the Articles of Agreement of the International Monetary Fund.
5. The investors affected by expropriation shall have aright of access to the courts of justice or the administrative tribunals or agencies of the Party making the expropriation to seek a prompt review of the investor's case or the amount of compensation that has been assessedi n accordance with the principles set out in this Article.

Article 78. Repurchase of Leases

If an agency of the government of a Party responsible for leasing industrial land repurchases a lease hold interest in land owned by an investor of the other Party, that agency shall take into consideration the following matters:
(a) the value attributable to the remaining period of such leasehold interest;
(b) priority allocation by the agency of a suitable, alternative property for the investor; and
(c) reasonable relocation costs that would be incurred by the investor in relocating to the alternative property within the territory of the Party.

Article 79. Protection from Strife

1. Each Party shall accord to investors of the other Party that have suffered loss or damage relating to their investments in the territory of the former Party due to armed conflict, or state of emergency such as revolution, insurrection and civil disturbance, treatment, as regards restitution, indemnification, compensation or any other settlement, that is no less favourable than that which it accords to its own investors.
2. Any payments made pursuant to paragraph 1 above shall be effectively realisable, freely convertible and freely transferable.

Article 80. Transfers

1. Each Party shall allow all payments relating to investments in its territory of an investor of the other Party to be freely transferred into and out of its territory without delay. Such transfers shall include:
(a) the initial capital and additional amounts to maintain or increase investments;
(b) profits, capital gains, dividends, royalties, interests and other current incomes accruing from investments;
(c) proceeds from the total or partial sale or liquidation of investments;
(d) payments made under a contract including loan payments in connection with investments;
(e) earnings of investors of a Party who work in connection with investments in the territory of the other Party;
(f) payments made in accordance with Articles 77 and 79; and
(g) payments arising out of the settlement of a dispute under Article 82.
2. Each Party shall allow transfers to be made without delay in a freely usable currency at the market rate of exchange prevailing on the date of transfer.
3. Notwithstanding paragraphs 1 and 2 above, a Party may delay or prevent a transfer through the equitable, nondiscriminatory and good-faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) the issuing, trading or dealing in securities;
(c) criminal matters;
(d) ensuring compliance with orders or judgements in adjudicatory proceedings; or
(e) obligations of investors arising from social security and public retirement plans.

Article 81. Subrogation

1. If a Party or its designated agency makes a payment to any of its investors pursuant to an indemnity, guarantee or contract of insurance, arising from or pertaining to an investment of that investor within the territory of the other Party, the other Party shall:
(a) recognise the assignment, to the former Party or its designated agency, of any right or claim of such investor that formed the basis of such payment; and
(b) recognise the right of the former Party or its designated agency to exercise by virtue of subrogation any such right or claim to the same extent as the original right or claim of the investor.
2. Paragraphs 2 to 5 of Article 77, and Articles 79 and80, shall apply mutatis mutandis as regards payment to be made to the Party or its designated agency first mentioned in paragraph 1 above by virtue of such assignment of right or claim, and the transfer of such payment.

Article 82. Settlement of Investment Disputes between a Party and an Investor of the other Party

1. For the purposes of this Chapter, an investment dispute is a dispute between a Party and an investor of the other Party that has incurred loss or damage by reason of, or arising out of, an alleged breach of any right conferred by this Chapter with respect to the investments of the investor of that other Party.
2. In the event of an investment dispute, such investment dispute shall, as far as possible, be settled amicably through consultations between the parties to the investment dispute.
3. If an investment dispute cannot be settled through such consultations within five months from the date on which the investor requested for the consultations in writing, and if the investor concerned has not submitted the investment dispute for resolution
(i) under administrative or judicial settlement, or
(ii) in accordance with any applicable, previously agreed dispute settlement procedures, that investor may either:
(a) request the establishment of an arbitral tribunal in accordance with the procedures set out in Annex V C and submit the investment dispute to that tribunal;
(b) submit the investment dispute to conciliation or arbitration in accordance with the provisions of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States done at Washington, March 18, 1965(hereinafter referred to in this Chapter as "the ICSID Convention"), so long as the ICSID Convention is in force between the Parties, or conciliation or arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (hereinafter referred to in this Chapter as "ICSID") so long as the ICSID Convention is not in force between the Parties; or (c) submit the investment dispute to arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law, adopted by the United Nations Commission on International Trade Law on April 28, 1976.
4. Each Party hereby consents to the submission of investment disputes to international conciliation or arbitration as provided for in paragraph 3 above, in accordance with the provisions of this Article, provided that:
(a) less than three years have elapsed since the date the investor knew or ought to have known, whichever is the earlier, of the loss or damage which, it is alleged, has been incurred by the investor; and
(b) in the case of arbitration in accordance with the provisions of the ICSID Convention referred to in sub-paragraph (b) of paragraph 3 above, if the Chairman of ICSID is asked to appoint an arbitrator or arbitrators pursuant to Article 38or 56(3) of the ICSID Convention, the Chairman:
(i) allows both the Party and the investor to each indicate up to three nationalities, the appointment of arbitrators of which pursuant to Article 38 or 56(3) of the ICSID Convention is unacceptable to it; and
(ii) does not appoint as arbitrator any person who is, by virtue of sub-paragraph (i) above, excluded by either the Party or the investor or both the Party and the investor.
5. When the condition set out in sub-paragraph (a) of paragraph 4 above is not met, the consent given in paragraph 4 above shall be invalidated.
6. When the conditions set out in sub-paragraph (b) of paragraph 4 of this Article are not met, the consent to arbitration by ICSID given in paragraph 4 of this Article shall be invalidated. In such circumstances, a different method of dispute settlement can be chosen from among those methods provided for in paragraph 3 of this Article other than ICSID arbitration.
7. Paragraphs 3 and 4 of this Article shall not apply if an investor which is an enterprise of a Party owned or controlled by persons of non-Parties submits an investment dispute with respect to its investments in the territory of the other Party, unless the investments concerned have been established, acquired or expanded in the territory of that other Party. 8. An investor to an investment dispute who intends to submit an investment dispute pursuant to paragraph 3 of this Article shall give to the Party that is a party to the investment dispute written notice of intent to do so at least 90 days before the claim is submitted.
The notice of intent shall specify:
(a) the name and address of the investor concerned;
(b) the specific measures of that Party at issue and a brief summary of the factual and legal basis of the dispute sufficient to present the problem clearly, including the provisions of this Chapter alleged to have been breached; and
(c) the dispute settlement procedures set forth in sub-paragraph (a), (b) or (c) of paragraph 3 of this Article which the investor will seek.
9. When an investor of a Party submits an investment dispute pursuant to paragraph 3 of this Article and the disputing Party invokes Article 84 or 85, the arbitrators to be selected shall, on the request of the disputing Party or investor, have the necessary expertise relevant to the specific financial matters under dispute.
10. (a) The award shall include:
(i) a judgement whether or not there has been a breach by a Party of any rights conferred by this Chapter in respect of the investor of the other Party and its investments; and
(ii) a remedy if there has been such breach.
(b) The award rendered in accordance with subparagraph (a) above shall be final and binding upon the Party and the investor, except to the extent provided for in sub-paragraphs (c) and (d)below.
(c) Where an award provides that there has been a breach by a Party of any rights conferred by this Chapter in respect of the investor of the other Party and its investments, the Party to the dispute is entitled to implement the award through one of the following remedies, in lieu of the remedy indicated pursuant to (ii) of subparagraph (a) of this paragraph:
(i) pecuniary compensation, including interest from the time the loss or damage was incurred until time of payment;
(ii) restitution in kind; or
(iii) pecuniary compensation and restitution in combination, provided that:
(A) the Party notifies the investor, within30 days after the date of the award,that it will implement the award through one of the remedies indicated in (i), (ii) or (iii) of this subparagraph; and
(B) where the Party chooses to implement the award in accordance with (i) or (iii) of this sub-paragraph, the Party and the investor agree as to the amount of pecuniary compensation, or in lieu of such agreement, a decision pursuant to sub-paragraph (d) below is made.
(d) If the Party and the investor are unable to agree, within 60 days after the date of the award, as to the amount of pecuniary compensation as provided for in (B) of sub-paragraph (c) above, the matter may be referred, by either the Party or the investor, to the arbitral tribunal that rendered the award. The award on the amount of pecuniary compensation in accordance with this paragraph is final and binding on both the Party and the investor.
(e) The award shall be executed by the applicable laws and regulations concerning the execution of such awards in force in the Party in whose territory such execution is sought.
11. Nothing in this Article shall be construed so as to prevent an investor to an investment dispute from seeking administrative or judicial settlement within the territory of the Party that is a party to the investment dispute.
12. Neither Party shall give diplomatic protection, or bring an international claim, in respect of an investment dispute which one of its investors and the other Party shall have consented to submit or shall have submitted to arbitration under this Article, unless such other Party shall have failed to abide by and comply with the award rendered in such dispute. Diplomatic protection, for the purposes of this paragraph, shall not include informal diplomatic exchanges for the sole purpose of facilitating a settlement of the dispute.

Article 83. General Exceptions Under Chapter 8

1. Subject to the requirement that such measures are notapplied in a manner which would constitute a means ofarbitrary or unjustifiable discrimination against the otherParty, or a disguised restriction on investments ofinvestors of a Party in the territory of the other Party,nothing in this Chapter shall be construed to prevent theadoption or enforcement by either Party of measures:
(a) necessary to protect public morals or to maintainpublic order;(Note) 

(b) necessary to protect human, animal or plant life or health;
(c) necessary to secure compliance with the laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:
(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on contract;
(ii) the protection of the privacy of the individual in relation to the processing and dissemination of personal data and the protection of confidentiality of personal records and accounts;
(iii) safety;
(d) relating to prison labour;
(e) imposed for the protection of national treasures of artistic, historic, or archaeological value;
(f) to conserve exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption.
2. In cases where a Party takes any measure pursuant to paragraph 1 above or Article 4, which it implements after this Agreement comes into force, such Party shall make reasonable effort to notify the other Party of the description of the measure either before such measure is taken or as soon as possible thereafter, if such measure could affect investments or investors of the other Party in respect of obligations made under this Chapter.

Article 84. Temporary Safeguard

1. A Party may adopt or maintain measures in consistent with its obligations provided for in Article 73 relating to cross-border capital transactions or Article 80:
(a) in the event of serious balance-of-payments or external financial difficulties or threat thereof; or
(b) where, in exceptional circumstances, movements of capital result in serious economic and financial disturbance in the Party concerned.
2. The measures referred to in paragraph 1 above:
(a) shall be consistent with the Articles of Agreement of the International Monetary Fund;
(b) shall not exceed those necessary to deal with the circumstances described in paragraph 1 above;
(c) shall be temporary and shall be eliminated as soon as conditions permit;
(d) shall promptly be notified to the other Party;
(e) shall not discriminate between the Parties;
(f) shall ensure that the other Party is treated as favourably as any non-Party; and (g) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party.
3. Nothing in this Chapter shall be regarded as affecting the rights enjoyed and obligations undertaken by a Party as a party to the Articles of Agreement of the International Monetary Fund.

Article 85. Prudential Measures

1. Notwithstanding any other provisions of this Chapter, a Party shall not be prevented from taking measures for prudential reasons, including measures for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by an enterprise supplying financial services, or to ensure the integrity and stability of the financial system.
2. Where such measures do not conform with the provisions of this Chapter, they shall not be used as a means of avoiding the Party's commitments or obligations under this Chapter.

Article 86. Intellectual Property Rights

Notwithstanding the provisions of Article 73, the Parties agree in respect of intellectual property rights that national treatment as provided for in that Article shall apply only to the extent as provided for in the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement.

Article 87. Taxation Measures as Expropriation

1. Article 77 shall apply to taxation measures, to the extent that such taxation measures constitute expropriation as provided for in paragraph 2 of Article 77.
2. Where paragraph 1 above applies, Articles 74, 82, 88and paragraph 1 of Article 89 shall also apply in respect of taxation measures.

Article 88. Joint Committee on Investment

1. For the purposes of effective implementation of this Chapter, a Joint Committee on Investment (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall be:
(a) reviewing and discussing the implementation and operation of this Chapter;
(b) reviewing the specific exceptions under paragraph1 of Article 76 for the purpose of contributing to the reduction or elimination, where appropriate, of such exceptions, and encouraging favourable conditions for investors of both Parties; and (c) discussing other investment related issues concerning this Chapter.
2. The Committee may decide to hold a joint meeting with the private sector.

Article 89. Application of Chapter 8

1. In fulfilling the obligations under this Chapter, each Party shall take such reasonable measures as are available to it to ensure observance by its local governments and non-governmental bodies in the exercise of power delegated by central or local governments within its territory.
2. If a Party has entered into an international agreement on investment with a non-Party, or enters into such an agreement after this Agreement comes into force, it shall favourably consider according to investors of the other Party and to their investments, treatment, in relation to the establishment, acquisition, expansion, management, operation, maintenance, use, possession, liquidation, sale, or other disposition of investments, no less favourable than the treatment that it accords in like circumstances to investors of that non-Party and their investments pursuant to such an agreement.

Section CHAPTER 9. Movement of Natural Persons

Article 90. Scope of Chapter 9

1. This Chapter applies to measures affecting the movement of natural persons of a Party who enter the territory of the other Party for business purposes.
2. This Agreement shall not apply to measures regarding nationality or citizenship, residence on a permanent basis or employment on a permanent basis.

Article 91. Definitions Under Chapter 9

The term "natural person of the other Party" means a natural person who resides in the territory of the other Party or elsewhere and who under the law of the other Party:
(a) in respect of Japan, is a national of Japan; and
(b) in respect of Singapore, is a national of Singapore or has the right of permanent residence in Singapore.

Article 92. Specific Commitments Under Chapter 9

1. Each Party shall set out in Part A of Annex VI the specific commitments it undertakes for: (a) short-term business visitors of the other Party; and
(b) intra-corporate transferees of the other Party.
2. Each Party shall set out in Part B of Annex VI the specific commitments it undertakes, to be implemented in accordance with its laws and regulations, for:
(a) investors of the other Party; and
(b) natural persons of the other Party who engage in work on the basis of a personal contract with public or private organisations in its territory.
3. Natural persons covered by a specific commitment referred to in paragraphs 1 and 2 above shall be granted entry and stay in accordance with the terms and conditions of the specific commitment.
4. The specific commitments referred to in paragraphs 1and 2 of this Article shall apply only to sectors where specific commitments referred to in Article 63 are undertaken under Chapter 7 and no specific exceptions are made under Chapter 8.

Article 93. Mutual Recognition of Professional Qualifications

1. A Party may recognise the education or experience obtained, requirements met, or licences or certifications granted in the territory of the other Party for the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing or certification of natural persons with professional qualifications.
2. Recognition referred to in paragraph 1 above, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement between the Parties or may be accorded unilaterally.
3. Where a Party recognises, by agreement or arrangement or unilaterally, the education or experience obtained, requirements met or licences or certifications granted in the territory of a non-Party, the Party shall accord the other Party an adequate opportunity to demonstrate that the education or experience obtained, requirements met or licences or certifications granted in the territory of the other Party should also be recognised.

Article 94. Joint Committee on Mutual Recognition of Professional Qualifications

1. For the purposes of effective implementation of Article 93 above, a Joint Committee on Mutual Recognition of Professional Qualifications (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall be:
(a) reviewing and discussing the issues concerning the effective implementation of Article 93 above;
(b) identifying and recommending areas for and ways of furthering co-operation between the Parties;and
(c) discussing other issues relating to the implementation of Article 93 above.
2. The composition of the Committee shall be specified in the Implementing Agreement.

Article 95. General Provisions for Chapter 9

1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination against the other Party, or a disguised restriction on trade in services between the Parties or on investments of investors of a Party in the territory of the other Party, nothing in this Chapter shall be construed to prevent the adoption or enforcement by either Party of measures:
(a) necessary to protect public morals or to maintain public order; (Note)

(b) necessary to protect human, animal or plant life or health;
(c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to:
(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;
(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
(iii) safety.
2. This Chapter shall not prevent a Party from applying measures to regulate the entry of natural persons of the other Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under the terms of a specific commitment.(Note) 

Section CHAPTER 10. Intellectual Property

Article 96. Areas and Forms of Co-operation Under Chapter 10

1. The Parties, recognising the growing importance of intellectual property (hereinafter referred to in this Chapter as "IP") as a factor of economic competitiveness in the knowledge-based economy, and of IP protection in this new environment, shall develop their co-operation in the field of IP.
2. The areas of the co-operation pursuant to paragraph 1above may include:
(a) patents, trade secrets and related rights;
(b) trade marks and related rights;
(c) repression of unfair competition;
(d) copyright, designs and related rights;
(e) IP brokerage or licensing, IP management, registration and exploitation, and patent mapping;
(f) IP protection in the digital environment and the growth and development of e-commerce; (g) technology and market intelligence; and
(h) IP education and awareness programmes.
3. The forms of the co-operation under paragraph 1 of this Article may include:
(a) exchanging information and sharing experiences on IP and on relevant IP events, activities and initiatives organised in their respective territories;
(b) jointly undertaking training and exchanging of experts in the field of IP for the purposes of contributing to a better understanding of each Party's IP policies and experiences; and
(c) disseminating information, sharing experiences and conducting training on IP enforcement.

Article 97. Joint Committee on Intellectual Property

1. For the purposes of effective implementation of this Chapter, a Joint Committee on IP (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall be:
(a) overseeing and reviewing the co-operation and implementation of this Chapter;
(b) providing advice to the Parties with regard to the implementation of this Chapter;
(c) considering and recommending new areas of cooperation under this Chapter; and (d) discussing other issues relating to IP.
2. The composition of the Committee shall be specified in the Implementing Agreement.

Article 98. Facilitation of Patenting Process

1. Singapore shall, in accordance with its laws and regulations, take appropriate measures to facilitate the patenting process of an application filed in Singapore that corresponds to an application filed in Japan.
2. The details of such measures taken by Singapore pursuant to paragraph 1 above shall be specified in the Implementing Agreement.

Article 99. Facilitation of the Use of Ip Databases

The Parties shall take appropriate measures, as set out in the Implementing Agreement, to facilitate the use of the Parties' IP databases open to the public.

Article 100. Costs of Co-operative Activities Under Chapter 10

Costs of co-operative activities shall be borne in such manner as may be mutually agreed.

Section CHAPTER 11. Government Procurement

Article 101. Scope of Chapter 11

1. Paragraph 2 of Article I, and Article II to Article XXIII of the Agreement on Government Procurement in Annex 4to the WTO Agreement (hereinafter referred to in this Agreement as "the GPA") (except for sub-paragraph (b) of paragraph 1 of Article III, Article V, paragraph 2 of Article XVI, paragraph 5 of Article XIX, Article XXI, Article XXII and paragraph 1 of Article XXIII) shall apply mutatis mutandis to procurement of goods and services specified in Annex VII A, by entities specified in AnnexVII B. The threshold　for a procurement covered by the provisions of this Chapter is SDR 100,000.
2. Where entities specified in Annex VII B, in the context of procurement covered under this Agreement, require enterprises not included in Annex VII B to award contracts in accordance with particular requirements, Article III of the GPA (except for sub-paragraph (b) of paragraph 1) shall apply mutatis mutandis to such requirements.
3. When an entity listed in Annex VII B is privatised, this Chapter shall no longer apply to that entity. A Party shall notify the other Party of the name of such entity before it is privatised or as soon as possible thereafter.
4. For the purposes of paragraph 3 above, a government entity is construed as privatised if it has been reconstituted to be a legal person operating commercially and is no longer entitled to exercise governmental authority, even though the government possesses holdings thereof or appoints members of the board of directors thereto.
5. Nothing in this Chapter shall be construed so as to derogate from the obligations of the Parties as parties to the GPA.

Article 102. Exchange of Information on Government Procurement

The government officials of the Parties responsible for procurement policy shall meet upon the request of either Party and, subject to the laws and regulations of each Party, exchange information in respect of government procurement.

Section CHAPTER 12. Competition

Article 103. Anti-competitive Activities

1. Each Party shall, in accordance with its applicable laws and regulations, take measures which it considers appropriate against anti-competitive activities, in order to facilitate trade and investment flows between the Parties and the efficient functioning of its markets.
2. Each Party shall, when necessary, endeavour to review and improve or to adopt laws and regulations to effectively control anti-competitive activities.

Article 104. Co-operation on Controlling Anti-competitive Activities

1. The Parties shall, in accordance with their respective laws and regulations, co-operate in the field of controlling anti-competitive activities subject to their available resources.
2. The sectors, details and procedures of co-operation under this Chapter shall be specified in the Implementing Agreement.
3. Pursuant to paragraph 1 of this Article, the Parties shall exchange information as provided for in the Implementing Agreement with respect to the implementation of this Chapter. Article 3 shall not apply to such exchange of information.

Article 105. Dispute Settlement

The dispute settlement procedures provided for in Chapter 21 shall not apply to this Chapter.

Section CHAPTER 13. Financial Services Co-operation

Article 106. Co-operation In the Field of Financial Services

The Parties shall co-operate in the field of financial services with a view to:
(a) promoting regulatory co-operation in the field of financial services;
(b) facilitating development of financial markets, including capital markets, in the Parties and in Asia; and
(c) improving financial market infrastructure of the Parties.

Article 107. Regulatory Co-operation

1. The Parties shall promote regulatory co-operation in the field of financial services, with a view to:
(a) implementing sound prudential policies, and enhancing effective supervision of financial institutions of either Party operating in the territory of the other Party;
(b) responding properly to issues relating to globalisation in financial services, including those provided by electronic means;
(c) maintaining an environment that does not stifle legitimate financial market innovations; and (d) conducting oversight of global financial institutions to minimise systemic risks and to limit contagion effects in the event of crises.
2. As a part of regulatory co-operation as set out in paragraph 1 above, the Parties shall, in accordance with their respective laws and regulations, co-operate in sharing information on securities markets and securities derivatives markets of the respective Parties as provided for in the Implementing Agreement, for the purposes of contributing to the effective enforcement of the securities laws of each Party. 
3. Articles 2 and 3 and Chapter 21 shall not apply to the co-operation between the Parties in sharing information on securities markets and securities derivatives markets as set out in paragraph 2 above.

Article 108. Capital Market Development

The Parties, recognising a growing need to enhance the competitiveness of their capital markets and to preserve and strengthen their stability in rapidly evolving global financial transactions, shall co-operate in facilitating the development of the capital markets in the Parties with a view to fostering sound and progressive capital markets and improving their depth and liquidity.

Article 109. Improvement of Financial Market Infrastructure

The Parties, recognising that efficient and reliable financial market infrastructure will facilitate trade and investment, shall co-operate in strengthening their financial market infrastructure.

Article 110. Development of Regional Financial Markets Including Capital Markets

The Parties, recognising the importance of stable and well-functioning financial markets, including capital markets, shall co-operate with a view to contributing to further development of cross-border financial activities in Asia and to regional financial stability.

Article 111. Joint Committee on Financial Services Co-operation

1. For the purposes of effective implementation of this Chapter, a Joint Committee on Financial Services Cooperation (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall include:
(a) reviewing and discussing issues concerning the effective implementation of this Chapter;
(b) identifying and recommending to the Parties areas for further co-operation; and (c) discussing other issues relating to financial services co-operation between the Parties.
2. The Committee may establish expert working groups to examine specific issues and initiatives in detail.
3. The composition of the Committee shall be specified in the Implementing Agreement.

Section CHAPTER 14. Information and Communications Technology

Article 112. Co-operation In the Field of Ict

The Parties, recognising the rapid development, led by the private sector, of ICT and of business practices concerning ICT-related services both in the domestic and the international contexts, shall co-operate to promote the development of ICT and ICT-related services with a view to obtaining the maximum benefit of the use of ICT for the Parties.

Article 113. Areas and Forms of Co-operation Under Chapter 14

1. The areas of co-operation pursuant to Article 112 above may include the following:
(a) promotion of electronic commerce;
(b) promotion of the use by consumers, the public sector and the private sector, of ICT-related services, including newly emerging services; and
(c) human resource development relating to ICT.
2. The Parties may set out, in the Implementing Agreement, specific areas of co-operation which they deem important.
3. The forms of co-operation pursuant to Article 112above may include the following:
(a) promoting dialogue on policy issues;
(b) promoting co-operation between the private sectors of the Parties;
(c) enhancing co-operation in international for are lating to ICT; and
(d) undertaking other appropriate co-operative activities.

Article 114. Joint Committee on Ict

1. For the purposes of effective implementation of this Chapter, a Joint Committee on ICT (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall be:
(a) reviewing and discussing issues concerning the effective implementation of this Chapter; (b) identifying ways of further co-operation between the Parties in the field of ICT; and
(c) discussing other issues relating to ICT.
2. The composition of the Committee shall be specified in the Implementing Agreement.

Section CHAPTER 15. Science and Technology

Article 115. Co-operation In the Field of Science and Technology

1. The Parties, recognising that science and technology, particularly in advanced areas, will contribute to the continued expansion of their respective economies in the medium and long term, shall develop and promote cooperative activities between the governments of the Parties(hereinafter referred to in this Chapter as "Co-operative Activities") for peaceful purposes in the field of science and technology on the basis of equality and mutual benefit. 2. The Parties shall also encourage, where appropriate,other co-operative activities between parties, one or both of whom are entities in their respective territories other than the governments of the Parties (hereinafter referred to in this Chapter as "Other Co-operative Activities").

Article 116. Areas and Forms of Co-operative Activities Under Chapter 15

The Parties may agree on the areas and forms of Cooperative Activities, which are to be specified in the Implementing Agreement.

Article 117. Joint Committee on Science and Technology

1. For the purposes of effective implementation of this Chapter, a Joint Committee on Science and Technology (hereinafter referred to in this Article as "the Committee") shall be established. The functions of the Committee shall be:
(a) reviewing and discussing the co-operative relationship in the field of scientific and technological development of the Parties and the progress of Co-operative Activities and Other Cooperative Activities;
(b) exchanging views and information on scientific and technological policy issues;
(c) providing advice to the Parties with regard to the implementation of this Chapter, which may include identification and recommendation of Cooperative Activities and encouragement of their implementation;
(d) discussing ways of encouraging Other Co-operative Activities, especially in the areas that the Parties consider important; and
(e) discussing other issues relating to science and technology.
2. The composition of the Committee shall be specified in the Implementing Agreement.

Article 118. Protection and Distribution of Intellectual Property Rights and other Rights of a Proprietary Nature

1. Scientific and technological information of a non-proprietary nature arising from Co-operative Activities maybe made available to the public by the government of either Party.
2. In accordance with the applicable laws and regulations of the Parties and with relevant international agreements to which the Parties are, or may become parties, the Parties shall ensure the adequate and effective protection, and give due consideration to the distribution, of intellectual property rights or other rights of a proprietary nature resulting from the Co-operative Activities undertaken pursuant to this Chapter. The Parties shall consult for this purpose as necessary.

Article 119. Costs of Co-operative Activities Under Chapter 15

1. The implementation of this Chapter shall be subject to the availability of appropriated funds and the applicable laws and regulations of each Party.
2. Costs of Co-operative Activities shall be borne in such manner as may be mutually agreed.