Pacific Alliance - Singapore FTA (2022)
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(a) Chapter II of the ICSID Convention (Jurisdiction of the Centre) and the ICSID Additional Facility Rules for written consent of the parties to the dispute; and

(b) Article II of the New York Convention for an "agreement in writing".

Article 8.22. Conditions and Limitations on Consent of Each Party

1. A claim may not be submitted to arbitration under this Section if more than three years have elapsed from the date on which the claimant first acquired, or should have first acquired, knowledge of the breach alleged under Article 8.20.1 and knowledge that the claimant (for claims brought under Article 8.20.1(a)) or the enterprise (for claims brought under Article 8.20.1(b)) has incurred loss or damage.

2. A claim may not be submitted to arbitration under this Section unless:

(a) the claimant consents in writing to arbitration in accordance with the procedures set out in this Agreement; and

(b) the Notice of Arbitration is accompanied:

(i) by the claimant's written waiver, for claims submitted to arbitration under Article 8.20.1(a);

(ii) by the claimant's and the enterprise's written waivers, for claims submitted to arbitration under Article 8.20.1(b),

of any right to initiate or continue before any court or administrative tribunal under the law of a Party, or any other dispute settlement procedures, any proceeding with respect to any measure alleged to constitute a breach referred to in Article 8.20.

3. Notwithstanding paragraph 2 (b), the claimant (for claims brought under 8.20.1(a)) and the claimant or the enterprise (for claims brought under Article 8.20.1(b)) may initiate or continue an action that seeks interim injunctive relief and does not involve the payment of monetary damages before a judicial or administrative tribunal of the respondent, provided that the action is brought for the sole purpose of preserving the claimant's or the enterprise's rights and interests during the pendency of the arbitration.

4. Upon request of the respondent, the tribunal shall decline jurisdiction if any of the claimants fails to fulfil any of the requirements established under this Article and Article 8.20.

Article 8.23. Third Party Funding

1. If a disputing party has received or is receiving third party funding, or has arranged to receive third party funding, the said disputing party shall file a written notice disclosing the name and address, and where applicable, ultimate beneficial owner and corporate structure, of any third party from which the disputing party, its affiliate or its representative, individually or collectively, has, directly or indirectly, received funds for the pursuit or defence of the proceeding through a donation or grant, or in return for remuneration dependent on the outcome of the proceeding.

2. The disputing party shall make the disclosure, under paragraph 1, at the time of the submission of a claim, or within ten days after any third party funding is arranged, donated or granted, as applicable, if such arrangement, donation or grant is made after the submission of a claim.

3. The disputing party's obligation to disclose information relating to third party funding referred to in paragraph 1, including the termination or any changes regarding the third party funding, shall continue throughout the course of the proceedings.

Article 8.24. Selection of Arbitrators

1. Unless the disputing parties agree otherwise, the tribunal shall be comprised of three arbitrators, one arbitrator appointed by each of the disputing parties and the third, who shall be the presiding arbitrator, appointed by agreement of the disputing parties.

2. In selecting arbitrators, disputing Parties shall take into account, amongst other things, whether potential candidates have experience in public international law or international investment law.

3. The Secretary-General shall serve as appointing authority for an arbitration under this Section.

4. Ifa tribunal has not been constituted within a period of 90 days from the date that a claim is submitted to arbitration under this Section, the Secretary-General, on the request of a disputing party, shall appoint, in his or her discretion, the arbitrator or arbitrators not yet appointed. The Secretary-General shall not appoint a national of either the respondent or the Party of the claimant as the presiding arbitrator unless the disputing parties agree otherwise.

5. For the purposes of Article 39 of the ICSID Convention and Article 7 of Schedule C to the ICSID Additional Facility Rules, and without prejudice to an objection to an arbitrator on grounds other than nationality:

(a) the respondent agrees to the appointment of each individual member of a tribunal established under the ICSID Convention or to the ICSID Additional Facility Rules;

(b) the claimant referred to in Article 8.20.1(a) may submit a claim to arbitration under this Section, or continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on condition that the claimant agrees in writing to the appointment of each individual member of the tribunal; and

(c) the claimant referred to in Article 8.20.1(b) may submit a claim to arbitration under this Section, or continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on condition that the claimant and the enterprise agree in writing to the appointment of each individual member of the tribunal.

6. In addition to any applicable arbitral rules regarding independence and impartiality of arbitrators, arbitrators shall comply with the Code of Conduct for Arbitrators established by the Free Trade Commission under Article 22.3.1(d) (Functions of the Free Trade Commission) and any other guidance on the application of relevant rules or guidelines on conflicts of interest in international arbitration that the Parties may provide.

Article 8.25. Conduct of the Arbitration

1. The disputing parties may agree on the legal place of any arbitration under the arbitration rules applicable under Article 8.20.5. If the disputing parties fail to reach agreement, the tribunal shall determine the place in accordance with the applicable arbitration rules, provided that the place shall be in the territory of a State that is a party to the New York Convention.

2. A non-disputing Party may make oral or written submissions to the tribunal regarding the interpretation of this Agreement.

3. After consultation with the disputing parties, the tribunal may accept and consider written amicus curiae submissions regarding a matter of fact or law within the scope of the dispute that may assist the tribunal in evaluating the submissions and arguments of the disputing parties from a person or entity that is not a disputing party but has a significant interest in the arbitral proceedings. Each submission shall identify the author; disclose any affiliation, direct or indirect, with any disputing party; and identify any person, government or other entity that has provided, or will provide, any financial or other assistance in preparing the submission. Each submission shall be in a language of the arbitration and comply with any page limits and deadlines set by the tribunal. The tribunal shall provide the disputing parties with an opportunity to respond to such submissions. The tribunal shall ensure that the submissions do not disrupt or unduly burden the arbitral proceedings, or unfairly prejudice any disputing party.

4. Without prejudice to the tribunal's authority to address other objections as a preliminary question, such as an objection that the dispute is not within the competence of the tribunal, including an objection to the tribunal's jurisdiction, a tribunal shall address and decide as a preliminary question any objection by the respondent that, as a matter of law, a claim submitted is not a claim for which an award in favour of the claimant may be made under Article 8.32, or that the claim is manifestly without legal merit:

(a) An objection under this paragraph shall be submitted to the tribunal as soon as possible after it has been constituted, and in no event later than the date the tribunal fixes for the respondent to submit its counter-memorial, or in the case of an amendment to the Notice of Arbitration, the date the tribunal fixes for the respondent to submit its response to the amendment.

(b) On receipt of an objection under this paragraph, the tribunal shall suspend any proceedings on the merits, establish a schedule for considering the objection consistent with any schedule it has established for considering any other preliminary question, and issue a decision or award on the objection, stating the grounds therefor.

(c) In deciding an objection under this paragraph: that a claim submitted is not a claim for which an award in favour of the claimant may be made under Article 8.32, the tribunal shall assume to be true the claimant's factual allegations in support of any claim in the Notice of Arbitration, or any amendment thereof, and in disputes brought under the UNCITRAL Arbitration Rules, the statement of claim referred to in the relevant article of the UNCITRAL Arbitration Rules. The tribunal may also consider any other relevant facts not in dispute.

(d) The respondent does not waive any objection as to competence, including an objection to jurisdiction, or any argument on the merits merely because the respondent did or did not raise an objection under this paragraph or make use of the expedited procedure set out in paragraph 5.

5. In the event that the respondent so requests within 45 days after the tribunal is constituted, the tribunal shall decide on an expedited basis an objection under paragraph 4 or any other objection that the dispute is not within the tribunal's competence, including an objection that the dispute is not within the tribunal's jurisdiction. The tribunal shall suspend any proceedings on the merits and issue a decision or award on the objection, stating the grounds therefor, no later than 150 days after the date of the request. However, if a disputing party requests a hearing, the tribunal may take an additional 30 days to issue the decision or award. Regardless of whether a hearing is requested, a tribunal may, on a showing of extraordinary cause, delay issuing its decision or award by an additional brief period, which may not exceed 30 days.

6. When the tribunal decides a respondent's objection under paragraphs 4 or 5, it may, if warranted, award to the prevailing disputing party reasonable costs and attorney's fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the tribunal shall consider whether either the claimant's claim or the respondent's objection was frivolous, and shall provide the disputing parties a reasonable opportunity to comment.

7. For greater certainty, if an investor of a Party submits a claim under this Section, including a claim alleging that a Party breached Article 8.7, the investor has the burden of proving all elements of its claims, consistent with general principles of international law applicable to international arbitration.

8. A respondent shall not assert as a defence, counterclaim, right of set-off, or for any other reason, that the claimant has received or will receive indemnification or other compensation for all or part of the alleged damages, pursuant to an insurance or guarantee contract.

9. A tribunal may order an interim measure of protection to preserve the rights of a disputing party, or to ensure that the tribunal's jurisdiction is made fully effective, including an order to preserve evidence in the possession or control of a disputing party or to protect the tribunal's jurisdiction. A tribunal may not order attachment or enjoin the application of a measure alleged to constitute a breach referred to in Article 8.20. For the purposes of this paragraph, an order includes a recommendation.

10. For greater certainty, upon request by the respondent, the tribunal may order the claimant to provide security for all or part of the costs, if there are reasonable grounds to believe that there is a risk the claimant may not be able to honour a potential costs award against it. In considering that request, the tribunal may take into account evidence of third party funding. If the security for costs is not posted in full within 30 days after the tribunal makes that order, or within any other time period set by the tribunal, the tribunal shall so inform the disputing parties and may order the suspension or termination of the proceedings.

11. In any arbitration conducted under this Section, at the request of any of the disputing parties, a tribunal shall, before issuing a decision or award, transmit its proposed decision or award to the disputing parties. Within 60 days after the tribunal transmits its proposed decision or award, the disputing parties may submit written comments to the tribunal concerning any aspect of its proposed decision or award. The tribunal shall consider any comments and issue its decision or award no later than 45 days after the expiration of the 60 days comment period.

12. In the event that an appellate mechanism for reviewing awards rendered by investor-State dispute settlement tribunals is developed in the future under other institutional arrangements, the Parties shall consider whether awards rendered under Article 8.32 should be subject to that appellate mechanism. The Parties shall strive to ensure that any such appellate mechanism they consider adopting provides for transparency of proceedings similar to the transparency provisions established in Article 8.26.

Article 8.26. Transparency of Arbitral Proceedings

1. Subject to paragraphs 2 and 4, the respondent shall, after receiving the following documents, promptly transmit them to the non-disputing Party and make them available to the public:

(a) the Notice of Intent;

(b) the Notice of Arbitration;

(c) pleadings, memorials and briefs submitted to the tribunal by a disputing party and any written submission submitted pursuant to Article 8.25.2 and 8.25.3, and Article 8.31;

(d) minutes or transcripts of hearings of the tribunal, if available, and

(e) orders, awards and decisions of the tribunal.

2. The tribunal shall conduct hearings open to the public and shall determine, in consultation with the disputing parties, the appropriate logistical arrangements. If a disputing party intends to use information in a hearing that is designated as protected information or otherwise subject to paragraph 3, it shall so advise the tribunal. The tribunal shall make appropriate arrangements to protect such information from disclosure which may include closing the hearing for the duration of the discussion of that information.

3. Nothing in this Section requires a respondent to make available to the public or otherwise disclose during or after the arbitral proceedings, including the hearing, protected information, or to furnish or allow access to information that it may withhold in accordance with Article 24.2 (Security Exceptions) or Article 24.4 (Disclosure of Information). (20)

4. Any protected information that is submitted to the tribunal shall be protected from disclosure in accordance with the following procedures:

(a) subject to subparagraph (d), neither the disputing parties nor the tribunal shall disclose to the non-disputing Party or to the public any protected information if the disputing party that provided the information clearly designates it as such in accordance with subparagraph (b);

(b) any disputing party claiming that certain information constitutes protected information shall clearly designate the information according to any schedule set by the tribunal;

(c) a disputing party shall, according to any schedule set by the tribunal, submit a redacted version of the document that does not contain the protected information. Only the redacted version shall be disclosed in accordance with paragraph 1, and

(d) the tribunal, subject to paragraph 3, shall decide any objection regarding the designation of information claimed to be protected information. If the tribunal determines that the information was not properly designated, the disputing party that submitted the information may:

(i) withdraw all or part of its submission containing that information, or

(ii) agree to resubmit complete and redacted documents with corrected designations in accordance with the tribunal's determination and subparagraph (c).

In either case, the other disputing party shall, whenever necessary, resubmit complete and redacted documents which either remove the information withdrawn under subparagraph (d)(i) by the disputing party that first submitted the information or redesignate the information consistent with the designation under subparagraph (d)(ii) of the disputing party that first submitted the information.

5. Nothing in this Section requires the respondent to withhold from the public information required to be disclosed by its law. The respondent should endeavour to apply those laws in a manner sensitive to protecting from disclosure information that has been designated as protected information.

(20) For greater certainty, when a respondent chooses to disclose to the tribunal information that may be withheld in accordance with Article 24.2 (Security Exceptions) or Article 24.4 (Disclosure of Information), the respondent may still withhold that information from disclosure to the public.

Article 8.27. Discontinuance

If, following the submission of a claim under this Section, the claimant fails to take any steps in the proceeding during 180 consecutive days or such periods as the disputing parties may agree, the claimant shall be deemed to have withdrawn its claim and to have discontinued the proceedings. The tribunal shall, at the request of the respondent, and after notice to the disputing parties, take note of the discontinuance in an order and issue an award on costs. After such an order has been rendered the authority of the tribunal shall lapse. Unless the claimant's failure to take steps in the proceedings was despite its best endeavors to comply with the requirements under Section B, the claimant may not subsequently submit a claim on the same matter.

Article 8.28. Governing Law

1. Subject to paragraph 2, when a claim is submitted under Article 8.20.1(a) or 8.20.1(b), the tribunal shall decide the issues in dispute in accordance with this Agreement and applicable rules of international law. (21)

2. A decision of the Free Trade Commission on the interpretation of a provision of this Agreement under Article 22.3 (Functions of the Free Trade Commission) shall be binding on a tribunal, and any decision or award issued by a tribunal must be consistent with that decision.

3. For greater certainty, the tribunal shall not have jurisdiction to determine the legality of a measure, alleged to constitute a breach of this Agreement, under the laws and regulations of the respondent.

(21) For greater certainty, this provision is without prejudice to any consideration of the domestic law of the respondent when it is relevant to the claim as a matter of fact.

Article 8.29. Interpretation of Annexes on Non-Conforming Measures

1. If a respondent asserts as a defence that the measure alleged to be a breach is within the scope of a non-conforming measure set out in Annex I or Annex II, the tribunal shall, on request of the respondent, request the interpretation of the Free Trade Commission on the issue. The Free Trade Commission shall submit in writing any decision on its interpretation under Article 22.3.2(f) (Functions of the Free Trade Commission) to the tribunal within 90 days of delivery of the request.

2. A decision issued by the Free Trade Commission under paragraph 1 shall be binding on the tribunal and any decision or award issued by the tribunal must be consistent with that decision. If the Free Trade Commission fails to issue such a decision within 90 days, the tribunal shall decide the issue.

Article 8.30. Expert Reports

Without prejudice to the appointment of other kinds of experts when authorised by the applicable arbitration rules, a tribunal, on request of a disputing party or, unless the disputing parties disapprove, on its own initiative, may appoint one or more experts to report to it in writing on any factual issue concerning environmental, health, safety or scientific matters raised by a disputing party in a proceeding, subject to the terms and conditions that the disputing parties may agree.

Article 8.31. Consolidation

1. If two or more claims have been submitted separately to arbitration under Article 8.20.1, and the claims have a question of law or fact in common and arise out of the same events or circumstances, any disputing party may seek a consolidation order, in accordance with the agreement of all the disputing parties sought to be covered by the consolidation order or the terms of paragraphs 2 through 10.

2. A disputing party that seeks a consolidation order under this Article shall deliver a written request to the Secretary-General and to all the disputing parties sought to be covered by the order and shall specify in the request:

(a) the names and addresses of all the disputing parties sought to be covered by the consolidation order;

(b) the nature of the consolidation order sought, and

(c) the grounds on which the order is sought.

3. Unless the Secretary-General finds, within 30 days after receiving a written request under paragraph 2, that the request is manifestly unfounded, a tribunal shall be established under this Article.

4. Unless all the disputing parties sought to be covered by the consolidation order agree otherwise, the tribunal established under this Article shall comprise three arbitrators:

(a) one arbitrator appointed by agreement of the claimants;

(b) one arbitrator appointed by the respondent, and

(c) the presiding arbitrator appointed by the Secretary-General provided that the presiding arbitrator is not a national of the respondent or of a Party of any claimant.

5. If, within a period of 60 days after the Secretary-General receives a request made under paragraph 2, the respondent fails or the claimants fail to appoint an arbitrator in accordance with paragraph 4, the Secretary-General, on request of any disputing party sought to be covered by the order, shall appoint the arbitrator or arbitrators not yet appointed.

6. If a tribunal established under this Article is satisfied that two or more claims that have been submitted to arbitration under Article 8.20.1 have a question of law or fact in common and arise out of the same events or circumstances, the tribunal may, in the interest of fair and efficient resolution of the claims, and after hearing the disputing parties, by order:

(a) assume jurisdiction over, and hear and determine together, all or part of the claims;

(b) assume jurisdiction over, and hear and determine one or more of the claims, the determination of which it believes would assist in the resolution of the others, or

(c) instruct a tribunal established under Article 8.24 to assume jurisdiction over, and hear and determine together, all or part of the claims, provided that:

(i) that tribunal, on request of any claimant that was not previously a disputing party before that tribunal, shall be reconstituted with its original members, except that the arbitrator for the claimants shall be appointed pursuant to subparagraph 4(a) and paragraph 5, and

(ii) that tribunal shall decide whether any prior hearing should be repeated.

7. If a tribunal has been established under this Article, a claimant that has submitted a claim to arbitration under Article 8.20.1 and that has not been named in a request made under paragraph 2 may make a written request to the tribunal that it be included in any order made under paragraph 6. The request shall specify:

(a) the name and address of the claimant;

(b) the nature of the order sought, and

(c) the grounds on which the order is sought.

The claimant shall deliver a copy of its request to the Secretary-General.

8. A tribunal established under this Article shall conduct its proceedings in accordance with the UNCITRAL Arbitration Rules, except as modified by this Section.

9. A tribunal established under Article 8.24 shall not have jurisdiction to decide a claim, or part of a claim, over which a tribunal established or instructed under this Article has assumed jurisdiction.

10. On the application of a disputing party, a tribunal established under this Article, pending its decision under paragraph 6, may order that the proceedings of a tribunal established under Article 8.24 be stayed, unless the latter tribunal has already adjourned its proceedings.

Article 8.32. Awards

1. When a tribunal makes a final award, the tribunal may award, separately or in combination, only:

(a) monetary damages and applicable interest, and

(b) restitution of property, in which case the award shall provide that the respondent may pay monetary damages and any applicable interest in lieu of restitution.

2. For greater certainty, if an investor of a Party submits a claim to arbitration under Article 8.20. 1(a), it may recover only for loss or damage that it has incurred in its capacity as an investor of a Party.

3 A tribunal may also award costs and attorney's fees incurred by the disputing parties in connection with the arbitral proceeding, and shall determine how and by whom those costs and attorney's fees shall be paid, in accordance with this Section and the applicable arbitration rules.

4. For greater certainty, for claims alleging the breach of an obligation under Section A with respect to an attempt to make an investment, when an award is made in favour of the claimant, the only damages that may be awarded are those that the claimant has proven were sustained in the attempt to make the investment, provided that the claimant also proves that the breach was the proximate cause of those damages. If the tribunal determines such claims to be frivolous, the tribunal may award to the respondent reasonable costs and attorney’s fees.

5. Subject to paragraph 1, if a claim is submitted to arbitration under Article 8.20.1(b) and the award is made in favour of the enterprise:

(a) an award of restitution of property shall provide that restitution be made to the enterprise;

(b) an award of monetary damages and any applicable interest shall provide that the sum be paid to the enterprise, and

(c) the award shall provide that it is made without prejudice to any right that any person may have under applicable domestic law with respect to the relief provided in the award.

6. A tribunal may not award punitive damages.

7. An award made by a tribunal shall have no binding force except between the disputing parties and only in respect of the particular case.

8. Subject to paragraph 9 and the applicable review procedure for an interim award, a disputing party shall abide by and comply with an award without delay.

9. A disputing party shall not seek enforcement of the final award until:

(a) in the case of a final award made under the ICSID Convention:

(i) 120 days have elapsed from the date the award was rendered and no disputing party has requested revision or annulment of the award; or

(ii) revision or annulment proceedings have been completed; and

(b) in the case of a final award under the ICSID Additional Facility Rules, the UNCITRAL Arbitration Rules or the rules selected pursuant to Article 8.20.5(d):

(i) 90 days have elapsed from the date the award was rendered and no disputing party has commenced a proceeding to revise, set aside or annul the award, or

(ii) a court has dismissed or allowed an application to revise, set aside or annul the award and there is no further appeal.

10. Each Party shall provide for the due enforcement of an award in its territory.

11. If the respondent fails to abide by or comply with a final award, on delivery of a request by the Party of the claimant, a panel shall be established under Article 23.8 (Establishment of a Panel). The requesting Party may seek in those proceedings:

(a) a determination that the failure to abide by or comply with the final award is inconsistent with the obligations of this Agreement, and

(b) in accordance with Article 23.17 (Initial Report of the Panel), a recommendation that the respondent abide by or comply with the final award.

12. Adisputing party may seek enforcement of an arbitration award under the ICSID Convention or the New York Convention regardless of whether proceedings have been taken under paragraph 11.

13. Acclaim that is submitted to arbitration under this Section shall be considered to arise out of a commercial relationship or transaction for the purposes of Article I of the New York Convention.

Article 8.33. Service of Documents

Delivery of notices and other documents to a Party shall be made to the place designated in Annex 8-F. A Party shall promptly make publicly available and notify the other Party of any change to the place referred to in that Annex.

Section C. Complementary Provisions

Article 8.34. Implementation

The Parties shall consult with each other annually or as otherwise agreed, to review the implementation of this Chapter and consider investment matters of mutual interest, including amongst others, the extent to which the private sector takes advantage of the commitments established in this Chapter.

Annex 8-A. CUSTOMARY INTERNATIONAL LAW

The Parties confirm their shared understanding that "customary international law" generally and as specifically referenced in Article 8.7, results from a general and consistent practice of States that they follow from a sense of legal obligation. The customary international law minimum standard of treatment of aliens refers to all customary international law principles that protect the investments of aliens.

Annex 8-B. TRANSFERS

1. Chile reserves the right of the Central Bank of Chile (Banco Central de Chile) to maintain or adopt measures in conformity with Law 18.840, Constitutional Organic Law of the Central Bank of Chile (Ley 18.840, Ley Organica Constitucional del Banco Central de Chile) or other legislation, in order to ensure currency stability and the normal operation of domestic and foreign payments. For this purpose, the Central Bank of Chile is empowered to regulate the supply of money and credit in circulation and international credit and foreign exchange operations. The Central Bank of Chile is empowered as well to issue regulations governing monetary, credit, financial, and foreign exchange matters. Such measures include, inter alia, the establishment of restrictions or limitations on current payments and transfers (capital movements) to or from Chile, as well as transactions related to them, such as requiring that deposits, investments or credits from or to a foreign country, be subject to a reserve requirement (encaje).

2. Notwithstanding paragraph 1, the reserve requirement that the Central Bank of Chile can apply pursuant to Article 49 N° 2 of Law 18.840, shall not exceed 30 percent of the amount transferred and shall not be imposed for a period which exceeds two years.

3. When applying measures under this Annex, Chile, as established in its legislation, shall not discriminate between Singapore and any third country with respect to transactions of the same nature.

Annex 8-C. EXPROPRIATION

The Parties confirm their shared understanding that:

1. Anaction or series of actions by a Party cannot constitute an expropriation unless it interferes with a tangible or intangible property right, or property interest in an investment.

2. Article 8.13 addresses two situations. The first is direct expropriation, in which an investment is nationalised or otherwise directly expropriated through formal transfer of title or outright seizure.

3. The second situation addressed by Article 8.13 is indirect expropriation, in which an action or series of actions by a Party has an effect equivalent to direct expropriation in that it substantially deprives the investor of the fundamental attributes of property in its investment, including the right to use, enjoy and dispose of its investment, without formal transfer of title or outright seizure.

(a) The determination of whether an action or series of actions by a Party, in a specific fact situation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry that considers, among other factors:

(i) the economic impact of the government action and its duration, although the fact that an action or series of actions by a Party has an adverse effect on the economic value of an investment, standing alone, does not establish that an indirect expropriation has occurred;

(ii) the extent to which the government action or series of actions interferes with the distinct, reasonable investment-backed expectations (1); and

(iii) the character of the government action.

(b) For greater certainty, non-discriminatory regulatory actions by a Party that are designed and applied to protect legitimate public welfare objectives, such as public health, safety and the environment, do not constitute indirect expropriations.

(1) For greater certainty, whether an investor's investment backed expectations are reasonable depends, to the extent relevant, on factors such as whether the government provided the investor with binding written assurances and the nature and extent for governmental regulation or the potential for government regulation in the relevant sector.

Annex 8-D. EXEMPTIONS TO DISPUTE RESOLUTION MEXICO

  • Chapter   1 INITIAL PROVISIONS 1
  • Article   1.1 Establishment of a Free Trade Area 1
  • Article   1.2 Relationship to other International Agreements 1
  • Article   1.3 Scope 1
  • Chapter   2 GENERAL DEFINITIONS 1
  • Article   2.1 General Definitions 1
  • Article   2.2 Party-Specific Definitions 1
  • Chapter   3 NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 1
  • Section   A Definitions and Scope 1
  • Article   3.1 Definitions 1
  • Article   3.2 Scope 1
  • Section   B National Treatment 1
  • Article   3.3 National Treatment 1
  • Section   C Tariff Elimination 2
  • Article   3.4 Elimination of Customs Duties 2
  • Section   D Non-Tariff Measures 2
  • Article   3.6 Import and Export Restrictions 2
  • Article   3.7 Non-Tariff Measures 2
  • Article   3.8 Import Licensing 2
  • Article   3.9 Administrative Fees and Formalities 2
  • Article   3.10 Export Duties, Taxes or other Charges 2
  • Section   E Special Customs Regimes 2
  • Article   3.11 Waiver of Customs Duties 2
  • Article   3.12 Temporary Admission of Goods 2
  • Article   3.13 Goods Re-entered after Repair or Alteration 2
  • Article   3.14 Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials 2
  • Section   F Agriculture 2
  • Article   3.15 Scope 2
  • Article   3.16 Export Competition 2
  • Section   G Trade In Goods Committee 2
  • Article   3.17 Administration of this Chapter 2
  • Chapter   4 RULES OF ORIGIN AND ORIGIN PROCEDURES 2
  • Section   A Rules of Origin 2
  • Article   4.1 Definitions 2
  • Article   4.2 Originating Goods 2
  • Article   4.3 Wholly Obtained or Produced Goods 2
  • Article   4.4 Regional Value Content 3
  • Article   4.5 Net Cost 3
  • Article   4.6 Materials Used In Production 3
  • Article   4.7 Value of Materials Used In Production 3
  • Article   4.8 Indirect Materials 3
  • Article   4.9 Minimal Operations or Processes That Do Not Confer Origin 3
  • Article   4.10 Accumulation 3
  • Article   4.11 De Minimis 3
  • Article   4.12 Fungible Goods and Materials 3
  • Article   4.13 Accessories, Spare Parts, Tools, and Instructional or other Information Materials 3
  • Article   4.14 Packaging Materials and Containers for Retail Sale 3
  • Article   4.15 Packing Materials and Containers for Shipment 3
  • Article   4.17 Transit and Transhipment 3
  • Section   B Origin Procedures 3
  • Article   4.19 Certification of Origin 3
  • Article   4.20 Non-Party Invoice 4
  • Article   4.21 Minor Errors or Discrepancies 4
  • Article   4.22 Waiver of Certification of Origin 4
  • Article   4.23 Obligations Regarding Importations 4
  • Article   4.25 Obligations Regarding Exportations 4
  • Article   4.26 Records 4
  • Article   4.27 Verification of Origin 4
  • Article   4.28 Determinations of Origin 4
  • Article   4.29 Penalties 4
  • Article   4.30 Confidentiality 4
  • Article   4.31 Administration of this Chapter and Chapter 5 4
  • Article   4.32 Committee on Short Supply 4
  • Article   4.33 CSS Criteria 4
  • Chapter   5 CUSTOMS ADMINISTRATION AND TRADE FACILITATION 4
  • Article   5.1 Definitions 4
  • Article   5.2 Scope 4
  • Article   5.3 Objectives 4
  • Article   5.4 Affirmation of the Trade Facilitation Agreement 4
  • Article   5.5 Confidentiality 4
  • Article   5.6 Transparency 4
  • Article   5.7 Use of Customs Brokers 4
  • Article   5.8 Consistency In Tariff Classification and Customs Valuation 4
  • Article   5.9 Release of Goods 5
  • Article   5.10 Post-clearance Audit 5
  • Article   5.11 Record Keeping 5
  • Article   5.12 Automation 5
  • Article   5.13 Risk Management 5
  • Article   5.14 Express Shipments 5
  • Article   5.15 Perishable Goods 5
  • Article   5.16 Authorised Economic Operator 5
  • Article   5.17 Single Window 5
  • Article   5.18 Review and Appeal 5
  • Article   5.19 Penalties 5
  • Article   5.20 Advance Rulings 5
  • Article   5.21 Standards of Conduct 5
  • Article   5.22 Customs Cooperation 5
  • Article   5.23 Administration of this Chapter 5
  • Chapter   6 SANITARY AND PHYTOSANITARY MEASURES 5
  • Article   6.1 Definitions 5
  • Article   6.2 Objectives 5
  • Article   6.3 Scope 6
  • Article   6.4 General Provisions 6
  • Article   6.5 Equivalence 6
  • Article   6.6 Risk Analysis 6
  • Article   6.7 Adaptation to Regional Conditions, Including Pest- or Disease-Free Areas and Areas of Low Pest or Disease Prevalence 6
  • Article   6.8 Transparency  (4) 6
  • Article   6.9 Information Exchange 6
  • Article   6.10 Import Checks 6
  • Article   6.11 Audits  (7) 6
  • Article   6.12 Emergency Measures 6
  • Article   6.13 Certification 6
  • Article   6.14 Cooperation 6
  • Article   6.15 Cooperative Technical Consultations 6
  • Article   6.16 Administration of this Chapter 6
  • Article   6.17 Competent Authorities and Contact Points 6
  • Chapter   7 TECHNICAL BARRIERS TO TRADE 6
  • Article   7.1 Objectives 6
  • Article   7.2 Scope of Application 6
  • Article   7.3 Incorporation of the TBT Agreement 6
  • Article   7.4 International Standards, Guides and Recommendations 6
  • Article   7.5 Cooperation and Trade Facilitation 6
  • Article   7.6 Technical Regulations 7
  • Article   7.7 Conformity Assessment 7
  • Article   7.8 Transparency 7
  • Article   7.9 Administration of this Chapter 7
  • Article   7.10 Information Exchange 7
  • Article   7.11 Implementation Annexes 7
  • Article   7.12 Technical Discussions 7
  • Chapter   8 INVESTMENT 7
  • Section   A 7
  • Article   8.1 Definitions 7
  • Article   8.2 Scope 7
  • Article   8.3 Right to Regulate 7
  • Article   8.4 Relation to other Chapters 7
  • Article   8.5 National Treatment 7
  • Article   8.6 Most-Favoured-Nation Treatment 7
  • Article   8.7 Minimum Standard of Treatment  (8) 7
  • Article   8.8 Treatment In Case of Armed Conflict or Civil Strife 7
  • Article   8.9 Performance Requirements 7
  • Article   8.10 Senior Management and Boards of Directors 8
  • Article   8.11 Non-Conforming Measures 8
  • Article   8.12 Transfers  (12) 8
  • Article   8.13 Expropriation and Compensation (14) (15) 8
  • Article   8.14 Denial of Benefits (18) 8
  • Article   8.15 Special Formalities and Information Requirements 8
  • Article   8.16 Subrogation 8
  • Article   8.17 Corporate Social Responsibility 8
  • Section   B Settlement of Disputes between a Party and an Investor of the other Party 8
  • Article   8.18 Consultations 8
  • Article   8.19 Mediation 8
  • Article   8.20 Submission of a Claim to Arbitration 8
  • Article   8.21 Consent of Each Party to Arbitration 8
  • Article   8.22 Conditions and Limitations on Consent of Each Party 9
  • Article   8.23 Third Party Funding 9
  • Article   8.24 Selection of Arbitrators 9
  • Article   8.25 Conduct of the Arbitration 9
  • Article   8.26 Transparency of Arbitral Proceedings 9
  • Article   8.27 Discontinuance 9
  • Article   8.28 Governing Law 9
  • Article   8.29 Interpretation of Annexes on Non-Conforming Measures 9
  • Article   8.30 Expert Reports 9
  • Article   8.31 Consolidation 9
  • Article   8.32 Awards 9
  • Article   8.33 Service of Documents 9
  • Section   C Complementary Provisions 9
  • Article   8.34 Implementation 9
  • Annex 8-A  CUSTOMARY INTERNATIONAL LAW 9
  • Annex 8-B  TRANSFERS 9
  • Annex 8-C  EXPROPRIATION 9
  • Annex 8-D  EXEMPTIONS TO DISPUTE RESOLUTION MEXICO 10
  • Annex 8-E  SUBMISSION OF A CLAIM TO ARBITRATION 10
  • Annex 8-F  SERVICE OF DOCUMENTS ON A PARTY UNDER SECTION B 10
  • Chapter   9 CROSS-BORDER TRADE IN SERVICES 10
  • Article   9.1 Definitions 10
  • Article   9.2 Scope 10
  • Article   9.3 National Treatment 10
  • Article   9.4 Most-Favoured-Nation Treatment 10
  • Article   9.5 Local Presence 10
  • Article   9.6 Market Access 10
  • Article   9.7 Non-Conforming Measures 10
  • Article   9.8 Transparency 10
  • Article   9.9 Domestic Regulation 10
  • Article   9.10 Recognition 10
  • Article   9.11 Transfers and Payments (8) 11
  • Article   9.12 Administration of this Chapter 11
  • Article   9.13 Denial of Benefits 11
  • Annex 9-A  PROFESSIONAL SERVICE 11
  • Chapter   10 INTERNATIONAL MARITIME TRANSPORT SERVICES 11
  • Article   10.1 Definitions 11
  • Article   10.2 Scope 11
  • Article   10.3 Access to Ports, Services at the Port, and Maritime Auxiliary Services 11
  • Article   10.4 Cooperation 11
  • Article   10.5 Repositioning of Empty Containers 11
  • Article   10.6 Port Fees and Charges 11
  • Article   10.7 Administration of this Chapter 11
  • Chapter   11 TEMPORARY ENTRY FOR BUSINESS PERSONS 11
  • Article   11.1 Definitions 11
  • Article   11.2 Scope 11
  • Article   11.3 Application Procedures 11
  • Article   11.4 Grant of Temporary Entry 11
  • Article   11.5 Provision of Information 11
  • Article   11.7 Cooperation 11
  • Article   11.8 Relation to other Chapters 11
  • Article   11.9 Dispute Settlement 11
  • Chapter   12 TELECOMMUNICATIONS 11
  • Article   12.1 Definitions 11
  • Article   12.2 Scope 11
  • Article   12.3 Approaches to Regulation 12
  • Article   12.4 Access to and Use of Public Telecommunications Services  (1) 12
  • Article   12.5 Interconnection 12
  • Article   12.6 Number Portability 12
  • Article   12.7 Access to Telephone Numbers 12
  • Article   12.8 Competitive Safeguards 12
  • Article   12.9 Interconnection with Major Suppliers 12
  • Article   12.10 Treatment by Major Suppliers of Public Telecommunications Services 12
  • Article   12.11 Resale 12
  • Article   12.12 Unbundling of Network Elements 12
  • Article   12.13 Provisioning and Pricing of Leased Circuits 12
  • Article   12.14 Co-location 12
  • Article   12.15 Access to Poles, Ducts, Conduits and Rights-of-Way (4)(5) 12
  • Article   12.16 International Submarine Cable Systems (6)(7) 12
  • Article   12.17 Independent Regulatory Bodies 12
  • Article   12.18 Cooperation 12
  • Article   12.19 Licensing Process 12
  • Article   12.20 Allocation and Use of Scarce Resources 12
  • Article   12.21 Universal Service 12
  • Article   12.22 Transparency 12
  • Article   12.23 International Mobile Roaming 12
  • Article   12.24 Flexibility In Choice of Technology 12
  • Article   12.25 Resolution of Telecommunications Disputes 13
  • Article   12.26 Relation to other Chapters 13
  • Article   12.27 Enforcement 13
  • Article   12.28 Administration of this Chapter 13
  • Chapter   13 ELECTRONIC COMMERCE 13
  • Article   13.1 Definitions 13
  • Article   13.2 Scope 13
  • Article   13.3 General Provisions 13
  • Article   13.4 Domestic Electronic Transactions Framework 13
  • Article   13.5 Customs Duties 13
  • Article   13.6 Non-Discriminatory Treatment of Digital Products 13
  • Article   13.7 Transparency 13
  • Article   13.8 Online Consumer Protection 13
  • Article   13.9 Paperless Administration of Trade 13
  • Article   13.10 Principles on Access to and Use of the Internet for Electronic Commerce 13
  • Article   13.11 Personal Information Protection 13
  • Article   13.12 Unsolicited Commercial Electronic Messages 13
  • Article   13.13 Electronic Authentication and Electronic Signatures 13
  • Article   13.14 Cross-Border Transfer of Information by Electronic Means 13
  • Article   13.15 Localisation of Computing Facilities 13
  • Article   13.16 Cooperation 13
  • Article   13.17 Cooperation on Cybersecurity Matters 13
  • Article   13.18 Source Code 13
  • Article   13.19 Administration of this Chapter 13
  • Chapter   14 GOVERNMENT PROCUREMENT 13
  • Article   14.1 Definitions 13
  • Article   14.2 Scope Application of Chapter 14
  • Article   14.3 General Principles National Treatment and Non-Discrimination 14
  • Article   14.4 Offsets 14
  • Article   14.5 Valuation 14
  • Article   14.6 Technical Specifications 14
  • Article   14.7 Publication of Procurement Information 14
  • Article   14.8 Notice of Intended Procurement 14
  • Article   14.9 Limited Tendering 14
  • Article   14.10 Time Periods for the Submission of Tenders 14
  • Article   14.11 Tender Documentation 15
  • Article   14.12 Conditions for Participation 15
  • Article   14.13 Qualification of Suppliers Registration Systems and Qualification Procedures 15
  • Article   14.14 Treatment of Tenders and Awarding of Contracts 15
  • Article   14.15 Transparency and Post-Award Information 15
  • Article   14.16 Ensuring Integrity In Procurement Practices 15
  • Article   14.17 Domestic Review Procedures 15
  • Article   14.18 Use of Electronic Means 15
  • Article   14.19 Modifications and Rectifications 15
  • Article   14.20 Disclosure of Information 15
  • Article   14.21 Exceptions 15
  • Article   14.22 Facilitation of Participation by SMEs 15
  • Article   14.23 Cooperation 16
  • Article   14.24 Administration of this Chapter 16
  • Article   14.25 Further Negotiations 16
  • Chapter   15 COMPETITION POLICY 16
  • Article   15.1 Definitions 16
  • Article   15.2 Objectives 16
  • Article   15.3 Competition Laws and Authorities and Anticompetitive Business Conduct 16
  • Article   15.4 Procedural Fairness In Competition Law Enforcement 16
  • Article   15.5 Cooperation 16
  • Article   15.6 Technical Cooperation 16
  • Article   15.7 Consumer Protection 16
  • Article   15.8 Transparency 16
  • Article   15.9 Consultations 16
  • Article   15.10 Non-Application of Dispute Settlement 16
  • Chapter   16 STATE-OWNED ENTERPRISES 16
  • Article   16.1 Review 16
  • Chapter   17 TRADE AND GENDER 16
  • Article   17.1 General Provisions 16
  • Article   17.2 Cooperation Activities 16
  • Article   17.3 Administration of this Chapter 16
  • Article   17.4 Non-application of Dispute Resolution 16
  • Chapter   18 ECONOMIC AND TRADE COOPERATION 16
  • Article   18.1 General Provisions 16
  • Article   18.2 Areas of Economic and Trade Cooperation 16
  • Article   18.3 Administration of this Chapter 16
  • Article   18.4 Resources 16
  • Article   18.5 Non-Application of Dispute Settlement 16
  • Chapter   19 SMALL AND MEDIUM-SIZED ENTERPRISES 16
  • Article   19.1 General Provisions 16
  • Article   19.2 Information Sharing 17
  • Article   19.3 Cooperation Activities 17
  • Article   19.4 Contact Points 17
  • Article   19.5 Administration of this Chapter 17
  • Article   19.6 Relation with other Chapters 17
  • Article   19.7 Non-Application of Dispute Settlement 17
  • Chapter   20 GOOD REGULATORY PRACTICES 17
  • Article   20.1 Definitions 17
  • Article   20.2 General Provisions 17
  • Article   20.3 Scope of Application 17
  • Article   20.4 Establishment of Coordination and Review Processes or Mechanisms 17
  • Article   20.5 Implementation of Core Good Regulatory Practices 17
  • Article   20.6 Contact Points 17
  • Article   20.7 Cooperation 17
  • Article   20.8 Report of Implementation and Review 17
  • Article   20.9 Relation to other Chapters 17
  • Article   20.10 Non-Application of Dispute Settlement 17
  • Chapter   21 TRANSPARENCY AND ANTI-CORRUPTION 17
  • Section   A Transparency 17
  • Article   21.1 Definitions 17
  • Article   21.2 Publication 17
  • Article   21.3 Notification and Provision of Information 17
  • Article   21.4 Administrative Proceedings 17
  • Article   21.5 Review and Appeal 17
  • Section   B Anti-Corruption 18
  • Article   21.6 Definitions 18
  • Article   21.7 Scope 18
  • Article   21.8 Measures to Combat Corruption 18
  • Article   21.9 Cooperation 18
  • Article   21.10 Promoting Integrity Among Public Officials 18
  • Article   21.11 Participation of Private Sector and Society 18
  • Article   21.12 Application and Enforcement of Anti-Corruption Laws 18
  • Article   21.13 Relation to other Agreements 18
  • Article   21.14 Dispute Settlement 18
  • Chapter   22 ADMINISTRATION OF THE AGREEMENT 18
  • Article   22.1 Free Trade Commission 18
  • Article   22.2 Rules of Procedure of the Free Trade Commission 18
  • Article   22.3 Functions of the Free Trade Commission 18
  • Article   22.4 Contact Points 18
  • Article   22.5 Establishment of Cross-Cutting Committees 18
  • Article   22.6 General Provisions of Cross-Cutting Committees 18
  • Chapter   23 DISPUTE SETTLEMENT 18
  • Article   23.1 Definitions 18
  • Article   23.2 General Provisions 18
  • Article   23.3 Scope 19
  • Article   23.4 Urgent Circumstances 19
  • Article   23.5 Choice of Forum 19
  • Article   23.6 Consultations 19
  • Article   23.7 Good Offices, Conciliation and Mediation 19
  • Article   23.8 Establishment of a Panel 19
  • Article   23.9 Participation of a Third Party 19
  • Article   23.10 Consolidation of Proceedings 19
  • Article   23.11 Terms of Reference of the Panel 19
  • Article   23.12 Requirements of the Panellist 19
  • Article   23.13 Selection of the Panel 19
  • Article   23.14 Function of Panels 19
  • Article   23.15 Rules of Procedure of the Panel 19
  • Article   23.16 Suspension and Termination of Proceedings 19
  • Article   23.17 Initial Report of the Panel 19
  • Article   23.18 Final Report of the Panel 19
  • Article   23.19 Request for Clarification by the Panel 19
  • Article   23.20 Compliance with the Final Report of the Panel 19
  • Article   23.21 Non-Implementation - Compensation and Suspension of Benefits 19
  • Article   23.22 Compliance Review 20
  • Article   23.23 Administration of Dispute Settlement Proceedings 20
  • Article   23.24 Private Rights 20
  • Article   23.25 Alternative Dispute Resolution 20
  • Chapter   24 EXCEPTIONS 20
  • Article   24.1 General Exceptions 20
  • Article   24.2 Security Exceptions 20
  • Article   24 Taxation Measures 20
  • Article   24.4 Disclosure of Information 20
  • Article   24.5 Temporary Safeguard Measures 20
  • Chapter   25 FINAL PROVISIONS 20
  • Article   25.1 Annexes, Appendices and Footnotes 20
  • Article   25.2 Depositary 20
  • Article   25.3 Entry Into Force 20
  • Article   25.4 Amendments 20
  • Article   25.5 Amended or Successor International Agreements 20
  • Article   25.6 Withdrawal and Termination 20
  • Article   25.7 Accession 20
  • Article   25.8 Reservations 20
  • Article   25.9 Review 20
  • Article   25.10 Authentic Texts 20
  • Annex I  CHILE - EXPLANATORY NOTES 20
  • Annex I  SCHEDULE OF CHILE 21
  • Annex II  CHILE - EXPLANATORY NOTES 23
  • Annex II  SCHEDULE OF CHILE 23
  • Annex I  COLOMBIA - EXPLANATORY NOTES 24
  • Annex 8-A Annex 9-A  SCHEDULE OF COLOMBIA 24
  • Annex II  COLOMBIA - EXPLANATORY NOTES 26
  • ANNEX II  SCHEDULE OF COLOMBIA 26
  • Annex I  MEXICO - EXPLANATORY NOTES 27
  • Annex I  SCHEDULE OF MEXICO - INTRODUCTORY NOTES 27
  • Annex I  SCHEDULE OF MEXICO 27
  • Annex II   MEXICO - EXPLANATORY NOTES 32
  • Annex II   SCHEDULE OF MEXICO - INTRODUCTORY NOTES 32
  • Annex II   SCHEDULE OF MEXICO 32
  • Annex I  PERU - EXPLANATORY NOTES 33
  • Annex I  SCHEDULE OF PERU 33
  • Annex II  PERU - EXPLANATORY NOTES 35
  • Annex II  SCHEDULE OF PERU 35
  • Annex I   SINGAPORE - EXPLANATORY NOTES 36
  • Annex I  SINGAPORE'S RESERVATIONS TO CHAPTER 8 (INVESTMENT) & CHAPTER 9 (CROSS-BORDER TRADE IN SERVICES) 36
  • Annex II  SINGAPORE - EXPLANATORY NOTES 38
  • Annex II  SINGAPORE'S RESERVATIONS TO CHAPTER 8 (INVESTMENT) & CHAPTER 9 (CROSS-BORDER TRADE IN SERVICES) 38