Article 13. Expropriation (10)
10 This Article shall be interpreted in accordance with Annex 5 (Expropriation).
1. Neither Party shall nationalise, expropriate or subject to measures equivalent to nationalisation or expropriation a covered investment ("expropriation"), except:
(a) for a public purpose;
(b) in a non-discriminatory manner;
(c) on payment of prompt, adequate, and effective compensation in accordance with paragraphs 2 to 4; and
(d) in accordance with due process of law.
2. Compensation shall:
(a) be paid without delay;
(b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place ("the date of expropriation");
(c) not reflect any change in value occurring because the intended expropriation had become known earlier; and
(d) be fully realisable and freely transferable.
3. If the fair market value is denominated in a freely usable currency, the compensation paid shall be no less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment.
4. If the fair market value is denominated in a currency that is not freely usable, the compensation paid, converted into the currency of payment at the market rate of exchange prevailing on the date of payment, shall be no less than:
(a) the fair market value on the date of expropriation, converted into a freely usable currency at the market rate of exchange prevailing on that date; plus
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation until the date of payment.
5. This Article does not apply to the issuance of compulsory licenses granted in relation to intellectual property rights in accordance with the TRIPS Agreement, or to the revocation, limitation or creation of intellectual property rights, to the extent that such issuance, revocation, limitation, or creation is consistent with Chapter 10 (Intellectual Property).
Article 14. Subrogation
1. If a Party (or any agency, institution, statutory body or corporation designated by it) makes a payment to an investor of that Party under a guarantee, a contract of insurance or other form of indemnity against non-commercial risks it has granted in respect of an investment, the other Party shall recognise the subrogation or transfer of any right or title in respect of such investment. The subrogated or transferred right or claim shall not be greater than the original right or claim of the investor.
2. Where a Party (or any agency, institution, statutory body or corporation designated by it) has made a payment to an investor of that Party and has taken over rights and claims of the investor, that investor shall not, unless authorised to act on behalf of the Party (or any agency, institution, statutory body or corporation designated by it) making the payment, pursue those rights and claims against the other Party.
Article 15. Special Formalities
1. Nothing in Article 5 (National Treatment) shall be construed to prevent a Party from adopting or maintaining a measure that prescribes special formalities in connection with covered investments, such as residency requirements for registration or a requirement that covered investments be legally constituted under the laws or regulations of the Party, provided that such formalities do not materially impair the protections afforded by a Party to investors of the other Party and covered investments pursuant to this Chapter.
2. Notwithstanding Articles 5 (National Treatment) and 6 (Most-Favoured-Nation Treatment), a Party may require an investor of the other Party, or a covered investment, to provide information concerning that investment solely for informational or statistical purposes. The Party shall protect such information that is confidential from any disclosure that would prejudice the competitive position of the investor or investments of an investor of the other Party. Nothing in this paragraph shall be construed to prevent a Party from otherwise obtaining or disclosing information in connection with the equitable and good faith application of its law.
Article 16. Investment and Environment
Nothing in this Chapter shall be construed to prevent either Party from adopting, maintaining, or enforcing any measure otherwise consistent with this Chapter that it considers appropriate to ensure that investment activity is undertaken in a manner sensitive to environmental concerns.
Article 17. Denial of Benefits
Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to:
(a) investors of the other Party where the investment is being made by an enterprise that is owned or controlled by persons of a non-Party and the enterprise has no substantive business operations in the other Party; or
(b) investors of the other Party where the investment is being made by an enterprise that is owned or controlled by persons of the denying Party and the enterprise has no substantive business operations in the other Party.
Article 18. Scope
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 obligation under Section A directly concerning a covered investment of the investor of that other Party.
Article 19. Consultation and Negotiation
Any investment dispute referred to in Article 18 (Scope) shall, as far as possible, be settled amicably through consultations and negotiations between the investor and the other Party, which may include the use of non-binding third-party procedures, where this is acceptable to both disputing parties. A request for consultations and negotiations shall be made in writing and shall state the nature of the dispute.
Article 20. Consent to Submission of a Claim
1. If the dispute cannot be settled as provided for in Article 19 (Consultation and Negotiation) within six months from the date of request for consultations and negotiations then, unless the disputing parties agree otherwise, the dispute may be submitted to:
(a) arbitration under the UNCITRAL arbitration rules; or
(b) if the disputing parties agree, to any other arbitration institution or under any other arbitration rules, provided that the disputing investor shall, at least three months' prior to submitting the claim to arbitration under subparagraph (a) or (b), provide the disputing Party with written notice of its intention to submit a claim ("notice of intent"), and further provided that, prior to giving such notice, the disputing investor obtains the disputing Party's written consent to arbitration.
2. The notice of intent shall specify:
(a) the name and the address of the disputing investor and, where relevant, the enterprise;
(b) for each claim, the provision of this Agreement alleged to have been breached and any other relevant provisions;
(c) the legal and factual basis for each claim; and
(d) the relief sought and the approximate amount of damages claimed.
3. A disputing Party may, as a condition of its consent under paragraph 1 of this Article, require the disputing investor and, where relevant, the enterprise, to provide a written waiver of its right to initiate or continue before any court or administrative tribunal under the law of either Party, or other dispute settlement procedures, any proceeding with respect to any measure alleged to constitute a breach in the dispute referred to in paragraph 1 of this Article.
4. The arbitration rules applicable under paragraph 1 of this Article, and in effect on the date the claim or claims were submitted to arbitration under this Section, shall govern the arbitration except to the extent modified by this Section.
Article 21. Admissibility of Claims and Preliminary Objections
1. No claim may be submitted to arbitration under this Section if more than three years have elapsed between the time at which the disputing investor became aware, or should reasonably have become aware, of a breach of an obligation under Section A causing loss or damage to the disputing investor or enterprise and the date of submission of the claim.
2. A disputing Party may, no later than 30 days after the constitution of the tribunal, file an objection that a claim is manifestly without legal merit or is otherwise outside the jurisdiction or competence of the tribunal. The disputing Party shall specify as precisely as possible the basis for the objection.
3. The tribunal shall address any such objection as a preliminary question apart from the merits of the claim. The disputing parties shall be given a reasonable opportunity to present their views and observations to the tribunal. If the tribunal decides that the claim is manifestly without legal merit, or is otherwise not within the jurisdiction or competence of the tribunal, it shall render a decision to that effect.
4. The tribunal may, if warranted, award the prevailing disputing party reasonable costs and fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the tribunal shall consider whether either the claim or the objection was frivolous or manifestly without legal merit, and shall provide the disputing parties a reasonable opportunity to comment.
5. The disputing Party does not waive any objection as to jurisdiction or competence, or any argument on the merits merely because the disputing Party did or did not raise an objection under this Article.
Article 22. Selection of Arbitrators
1. Unless the disputing parties otherwise agree, the arbitral tribunal shall be composed of three arbitrators.
2. Each disputing party shall appoint one arbitrator and the disputing parties shall agree upon a third arbitrator, who shall be the presiding arbitrator of the arbitral tribunal.
3. If an arbitral tribunal has not been established within 75 days from the date on which the claim was submitted to arbitration, the appointing authority, upon request of either disputing party, shall appoint, at its own discretion, the arbitrator or arbitrators not yet appointed. The appointing authority shall not appoint a natural person of either Party as the presiding arbitrator unless the disputing parties agree otherwise.
Article 23. Place of Arbitration
Unless the disputing parties otherwise agree, the tribunal shall determine the place of arbitration in accordance with the applicable arbitration rules, provided that the place shall be in either Party or a state that is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Article 24. Interpretation of Agreement
1. The tribunal shall, on request of the disputing Party, request a joint interpretation of the Parties of any provision of this Agreement that is in issue in a dispute. The Parties shall submit in writing any joint decision declaring their interpretation to the tribunal within 60 days of delivery of the request.
2. A joint decision issued under paragraph 1 of this Article by the Parties shall be binding on the tribunal, and any award must be consistent with that joint decision. If the Parties fail to issue such a decision within 60 days, the tribunal shall decide the issue on its own account.
3. The non-disputing Party may make oral and written submissions to the tribunal regarding the interpretation of this Agreement.
Article 25. Amicus Curiae Submissions
The tribunal shall have the authority to accept and consider written amicus curiae submissions 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. The tribunal shall provide the disputing parties with an opportunity to respond to such written submissions.
Article 26. Consolidation of Claims
Where two or more investors notify an intention to submit claims to arbitration which have a question of law or fact in common and arise out of the same events or circumstances, and the disputing Party's written consent has been provided in each case, the disputing parties shall consult with a view to harmonising the procedures to apply, where all disputing parties agree to the consolidation of the claims, including with respect to the forum chosen to hear the dispute.
Article 27. Transparency of Arbitral Proceedings
1. Subject to paragraphs 2 and 4, the disputing Party shall, after receiving the following documents, promptly transmit them to the non-disputing Party and make them publicly available:
(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 submissions submitted pursuant to paragraph 3 of Article 24 (Interpretation of the Agreement) and Article 25 (Amicus Curiae Submissions); and
(d) 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. However, any disputing party that intends to use information designated as protected information in a hearing shall so advise the tribunal. The tribunal shall make appropriate arrangements to protect the information from disclosure which may include closing the hearing for the duration of any discussion of protected information.
3. Nothing in this Section requires a disputing Party to disclose protected information or to furnish or allow access to information that it may withhold in accordance with Article 2 (Security Exceptions) of Chapter 24 (General Exceptions) or Article 2 (Disclosure of Information) of Chapter 23 (General Provisions).
4. Any information specifically designated as protected information that is submitted to the tribunal or the disputing parties shall be protected from disclosure.
5. For greater certainty, a disputing party may disclose to persons directly connected with the arbitral proceedings such protected information as it considers necessary for the preparation of its case, but it shall require that such protected information is protected. 6. Nothing in this Section requires a disputing Party to withhold from the public information required to be disclosed by its laws.
Article 28. Awards
1. Where a tribunal makes a final award against a disputing Party, the tribunal may award, separately or in combination, only: (a) monetary damages and any applicable interest; and/or (b) restitution of property, in which case the award shall provide that the disputing Party may pay monetary damages and any applicable interest in lieu of restitution.
2. A tribunal may also award costs and fees in accordance with this Section and the applicable arbitration rules.
3. A tribunal may not award punitive damages.
4. An award made by a tribunal shall be final and binding on the disputing parties. An award shall have no binding force except between the disputing parties and in respect of the particular case.
5. A disputing party may not seek enforcement of a final award until all applicable review procedures have been completed.
6. Subject to paragraph 5 of this Article, a disputing party shall abide by and comply with an award without delay.
7. Each Party shall ensure that an award can be recognised and enforced in its jurisdiction.
Chapter 13. Cross-border Trade In Services
Article 1. Objectives
The objectives of this Chapter are to:
(a) facilitate the expansion of cross-border trade in services on a mutually advantageous basis;
(b) improve the efficiency and transparency of the Parties' respective services sectors and competitiveness of their export trade; and
(c) work toward progressive liberalisation, while recognising the right of each Party to regulate and introduce new regulations, and to provide and fund public services, in a manner that gives due respect to government policy objectives.
Article 2. Scope
1. This Chapter shall apply to measures adopted or maintained by a Party affecting cross-border trade in services.
2. In addition to paragraph 1 of this Article, Articles 4 (Market Access), 10 (Transparency) and 12 (Domestic Regulation) shall also apply to measures adopted or maintained by a Party affecting the supply of a service in its jurisdiction by a covered investment, as defined in Chapter 12 (Investment).
3. This Chapter shall not apply to:
(a) government procurement;
(b) services supplied in the exercise of governmental authority;
(c) subsidies or grants provided by a Party, including government-supported loans, guarantees and insurance, except as provided for in Article 14; or
(d) measures affecting natural persons of a Party seeking access to employment or the employment market of a Party.
4. In accordance with Article 5 (Grant of Temporary Entry) of Chapter 14 (Temporary Entry of Business Persons), commitments in respect of the presence of natural persons of a Party are set out in each Party's Schedule to Annex 6 of Chapter 14 (Temporary Entry of Business Persons).
5. This Chapter shall not apply to measures affecting air transport services or related services in support of air services except that this Chapter shall apply to measures affecting:
(a) aircraft repair and maintenance services;
(b) the selling and marketing of air transport services;
(c) computer reservation system services;
(d) speciality air services; and
(e) ground handling services.
Article 3. Definitions
For the purposes of this Chapter:
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;
commercial presence means any type of business or professional establishment, including through the constitution, acquisition or maintenance of an enterprise, including a representative office, within a Party for the purpose of supplying a service;
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;
cross-border trade in services means the supply of a service:
(a) from the jurisdiction of one Party into the jurisdiction of the other Party (Mode 1);
(b) in the jurisdiction of one Party to the service consumer of the other Party (Mode 2); or
(c) by a service supplier of one Party, through presence of natural persons of a Party in the jurisdiction of the other Party (Mode 4); but does not include the supply of a service in a Party by an investor of the other Party or a covered investment as defined in Article 2 (Definitions) of Chapter 12 (Investment).
government procurement means any measure relating to the procurement by governmental agencies of services for governmental purposes and not with a view to commercial sale or resale or use in the supply of services for commercial sale or resale;
ground handling services include cargo-handling services provided for freight in special containers, non-containerised freight or for passenger baggage, including services of freight terminal facilities and baggage handling services at airports;
aircraft cleaning and disinfecting services;
hangar services;
and aircraft towing services; measure adopted or maintained by a Party means any of those measures taken by a Party that are specified in paragraph 3(a) of Article 1 of GATS.
Such measures include 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 of natural persons of a Party for the supply of a service in the other Party.
monopoly supplier of a service means any person, public or private, which in the relevant market of a Party is authorised or established formally or in effect by that Party as the sole supplier of that service;
selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution.
These activities do not include the pricing of air transport services or the applicable conditions;
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;
service supplier of a Party means a person of a Party that supplies, or seeks to supply, a service;
services includes any service in any sector except services supplied in the exercise of governmental authority;
speciality air services means air services which are non-transportation air services, such as aerial fire fighting, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, and helicopter-lift for logging and construction, and other airborne agricultural, industrial, and inspection services; and supply of a service includes the production, distribution, marketing, sale and delivery of a service.
Article 4. Market Access
Neither Party shall, either on the basis of a regional sub-division or on the basis of its entire jurisdiction, adopt or maintain:
(a) limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;(11)
(d) limitations on the total number of natural persons of a Party that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; and
(e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.
Article 5. National Treatment
Each Party shall accord to services and service suppliers of the other Party, treatment no less favourable than that it accords, in like circumstances, to its own services and service suppliers.
Article 6. Most-favoured-nation Treatment
1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than that it accords, in like circumstances, to services and service suppliers of a non-Party.
2. Notwithstanding paragraph 1, the Parties reserve the right to adopt or maintain any measure that accords differential treatment to non-Parties under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.
3. For greater certainty, paragraph 2 includes, in respect of agreements on the liberalisation of trade in goods or services or investment, any measures taken as part of a wider process of economic integration or trade liberalisation between the parties to such agreements.
4. The Parties reserve the right to adopt or maintain any measure that accords differential treatment to non-Parties under any international agreement in force or signed after the date of entry into force of this Agreement involving:
(a) fisheries;
(b) maritime matters; or
(c) aviation.
Article 7. Local Presence
Neither Party may require a service supplier of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its jurisdiction as a condition for the supply of cross-border trade in services.
Article 8. Non-conforming Measures
1. Articles 4 (Market Access), 5 (National Treatment), 6 (Most-Favoured-Nation Treatment) and 7 (Local Presence) shall not apply to:
(a) any existing non-conforming measure that is maintained by a Party:
(i) as set out by that Party in its Schedule to Annex 4:I; or
(ii) maintained by a Party at a regional or local level of government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 4 (Market Access), 5 (National Treatment), 6 (Most-Favoured-Nation Treatment) and 7 (Local Presence).
2. Articles 4 (Market Access), 5 (National Treatment), 6 (Most-Favoured-Nation Treatment) and 7 (Local Presence) do not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out in its Schedule to Annex 4:II.
3. Articles 4 (Market Access), 5 (National Treatment), 6 (Most-Favoured-Nation Treatment) and 7 (Local Presence) do not apply to any measure affecting the presence of natural persons of a Party (Mode 4).
Article 9. Review
The Parties shall consult within two years of entry into force of this Agreement and at least every three years thereafter, or as otherwise agreed, to review the implementation of this Chapter and consider other trade in services issues of mutual interest, with a view to the progressive liberalisation of the trade in services between them on a mutually advantageous basis.
Article 10. Transparency
1. Each Party shall publish promptly or otherwise make publicly available international agreements pertaining to or affecting trade in cross-border services to which it is a signatory.
2. Each Party shall respond promptly to all requests by the other Party for specific information on any of its measures of general application which pertain to or affect the operation of this Chapter or international agreements within the meaning of paragraph 1 of this Article.
Article 11. Contact Points
1. Each Party shall designate a contact point for trade in services to facilitate communication between the Parties, and shall provide details of such contact point to the other Party.
2. The Parties shall notify each other promptly of any amendments to the details of their contact points.
Article 12. Domestic Regulation
1. Each Party shall ensure that all measures of general application affecting cross-border trade in services are administered in a reasonable, objective and impartial manner.
2. Each Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of and, where justified, appropriate remedies for, administrative decisions affecting cross-border 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. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards, and licensing requirements and procedures do not constitute unnecessary barriers to cross-border trade in services, each Party shall ensure that any such measures that it adopts or maintains:
(a) are based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) are not more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing and qualification procedures, do not in themselves constitute a restriction on the supply of the service.
4. In determining whether a Party is in conformity with its obligations under paragraph 3, account shall be taken of international standards of relevant international organisations applied by that Party.
5. Where authorisation is required for the supply of a service, each Party shall ensure that its competent authorities:
(a) in the case of an incomplete application, at the request of the applicant, identify all the additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe;
(b) within a reasonable period of time after the submission of an application considered complete under domestic law, inform the applicant of the decision concerning the application;
(c) to the extent practicable, establish an indicative timeframe for processing of an application;
(d) at the request of the applicant, provide, without undue delay, information concerning the status of the application; and
(e) if an application is rejected or denied, to the maximum extent possible, inform the applicant in writing and without undue delay the reasons for such action. The applicant will have the possibility of resubmitting, at its discretion, a new application.
6. Each Party shall ensure its competent authorities, where appropriate, accept copies of documents authenticated in accordance with domestic law, in place of original documents.
7. If licensing or qualification requirements include the completion of any examination, each Party shall ensure that:
(a) the examination is scheduled at reasonably frequent intervals;
(b) a reasonable period of time is provided to enable interested persons to submit an application.
8. Each Party shall ensure that any licensing fees (12) and qualification fees charged by the competent authority for the completion of relevant application procedures are reasonable, transparent and commensurate with the administrative costs incurred by the authority, including those for activities related to regulation and supervision of the relevant service.
9. Each Party shall provide for adequate procedures to verify the competence of professionals of the other Party.
10. The obligations in paragraphs 5 to 8 shall not apply to measures to the extent that they are subject to scheduling under Articles 4 (Market Access) and 5 (National Treatment) in the Party's schedules to Annex 4:I and 4:II.
11. If the results of the negotiations related to Article VI(4) of GATS (or the results of any similar negotiations undertaken in other multilateral fora in which the Parties participate) enter into effect, the Parties shall jointly review such results. Where the joint review assesses that the incorporation of such results into this Agreement would improve or strengthen the disciplines contained herein, the Parties shall jointly determine whether to incorporate such results into this Agreement.
Article 13. Recognition
1. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing or certification of service suppliers, and subject to the requirements of paragraph 4, a Party may recognise the education or experience obtained, requirements met, or licences or certification granted in the other Party.
2. Where a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met or licences or certification granted in a non-Party, nothing in Article 6 (Most-Favoured-Nation Treatment) shall be construed to require the Party to accord such recognition to the education or experience obtained, requirements met, or licences or certifications granted in the other Party.
3. A Party that is a party to an agreement or arrangement of the type referred to in paragraph 2, whether existing or future, shall afford adequate opportunity for the other Party, upon request, to negotiate its accession to such an agreement or arrangement or to negotiate a comparable one with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education or experience obtained, requirements met, or licences or certifications granted in that other Party should be recognised.
4. A Party shall not accord recognition in a manner which would constitute a means of discrimination between countries in the application of its standards or criteria for the authorisation, licensing or certification of service suppliers, or a disguised restriction on cross-border trade in services.
5. Where appropriate, the Parties agree to facilitate the establishment of dialogue between the relevant experts, regulators and/or industry bodies to share and maintain qualifications recognition processes with a view to encourage the achievement of recognition of qualifications and/or professional registration.
6. Such recognition may be achieved through harmonisation, recognition of regulatory outcomes, recognition of qualifications and professional registration awarded by one Party as a means of complying with the regulatory requirements of the other Party (whether accorded autonomously or by mutual arrangement) or recognition arrangements concluded between the Parties and between industry bodies.
Article 14. Subsidies
Notwithstanding paragraph 3(c) of Article 2 (Scope):
(a) the Parties shall review the issue of disciplines on subsidies related to cross-border trade in services in the light of any disciplines agreed under Article XV of GATS, with a view to the incorporation of such disciplines into this Agreement; and
(b) a Party which considers that it is adversely affected by a subsidy of the other Party related to cross-border trade in services may request consultations on such matters. The Parties shall enter into such consultations.
Article 15. Monopolies and Exclusive Service Suppliers
1. Each Party shall ensure that any monopoly supplier of a service in its jurisdiction does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that Party's obligations under Articles 4 (Market Access), 5 (National Treatment), 6 (Most-Favoured-Nation Treatment) and 7 (Local Presence) except as set out in its Schedules to Annexes 4:I and 4:II.
2. Where a Party's monopoly supplier of a service competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights, the Party shall ensure that such a supplier does not abuse its monopoly position to act in its jurisdiction in a manner inconsistent with that Party's obligations under Articles 4 (Market Access), 5 (National Treatment), 6 (Most–Favoured-Nation Treatment) and 7 (Local Presence) except as set out in its Schedules to Annexes 4:I and 4:II.
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 paragraphs 1 or 2, that Party may request the other Party establishing, maintaining or authorising such supplier to provide specific information concerning the relevant operations.
4. 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 jurisdiction.
Article 16. Transfer and Payments
1. Each Party shall permit all transfers and payments relating to the cross-border supply of services to be made freely and without delay into and out of its jurisdiction.
2. Each Party shall permit such transfers and payments relating to the cross-border supply of services to be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer.
3. Notwithstanding paragraphs 1 and 2 of this Article, a Party may prevent or delay a transfer or payment through the equitable, non-discriminatory and good faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) issuing, trading or dealing in securities, futures, options, or derivatives;
(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offences;
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings; or
(f) social security, public retirement or compulsory savings schemes.
Article 17. Denial of Benefits
Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to a service supplier of the other Party where the Party establishes that:
(a) the service is being supplied by an enterprise that is owned or controlled by persons of a non-Party and the enterprise has no substantive business operations in the other Party; or
(b) the service is being supplied by an enterprise that is owned or controlled by persons of the denying Party and the enterprise has no substantive business operations in the other Party.
Chapter 14. Temporary Entry of Business Persons
Article 1. Objectives
The objectives of this Chapter are to:
(a) facilitate the movement of business persons engaged in the conduct of trade and investment between the Parties; and
(b) establish streamlined and transparent procedures for applications made by business persons of the other Party, while recognising the need of a Party to ensure its security and to protect its domestic labour force and employment.
Article 2. Scope
1. This Chapter shall apply to measures affecting the temporary entry and stay of business persons of one Party into the other Party, where such persons include:
(a) business visitors;
(b) intra-corporate transferees;
(c) installers or servicers; and
(d) independent professionals.
2. This Chapter shall not apply to measures affecting natural persons of a Party seeking access to the employment market of the other Party, nor shall it apply to measures regarding residence, or employment on a permanent basis.
3. Nothing in this Chapter, Chapter 13 (Cross-Border Trade in Services), Chapter 12 (Investment) or Chapter 2 (Trade in Goods) shall prevent a Party from applying measures to regulate the entry or temporary stay of business persons of the other Party including those measures necessary to protect its integrity, and to ensure the orderly movement of business persons into its jurisdiction, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under this Chapter. The sole fact of a Party requiring an immigration formality in respect of business persons of the other Party and not those of non-Parties shall not be regarded as nullifying or impairing benefits accruing to the other Party under this Chapter.
Article 3. Definitions
For the purposes of this Chapter:
business person means a natural person of a Party who is engaged in trade in goods, the supply of services, or the conduct of investment;
business visitor means a natural person of a Party who is seeking temporary entry to another Party for business purposes, including for investment purposes, whose remuneration and financial support for the duration of the visit is derived from sources outside the granting Party, and who is not engaged in making direct sales to the general public or in supplying goods or services themselves;
immigration formality means a visa, permit, pass or other document or electronic authority granting a natural person of a Party permission to enter, stay or work or establish commercial presence in the granting Party;
independent professional has the meaning set out in each Party's Schedule of commitments in Annex 6 (Schedules of Commitments on Temporary Entry of Business Persons) in respect of that Party's commitments under this Chapter; installer or servicer means a natural person of a Party who is an installer or servicer of machinery and/or equipment, where such installation and/or servicing by the supplying company is a condition of purchase of the said machinery or equipment. An installer or servicer cannot perform services which are not related to the service activity which is the subject of the contract;
intra-corporate transferee has the meaning set out in each Party's Schedule of commitments in Annex 6 in respect of that Party's commitments under this Chapter; and
temporary entry means entry by a business person covered by this Chapter, without the intent to establish permanent residence.
Article 4. Expeditious Application Procedures
1. Where an application for an immigration formality is required by a Party, the Party shall expeditiously process completed applications for immigration formalities or extensions thereof, received from business persons of the other Party covered by Article 2 (Scope).
2. A Party shall, within 15 working days of receipt of an application for temporary entry that has been completed and submitted in accordance with its domestic law, either:
(a) make a decision on the application and inform the applicant of the decision including, if approved, the period of stay and other conditions; or
(b) if a decision cannot be made in that time period, inform the applicant when a decision will be made.
3. At the request of an applicant, a Party in receipt of a completed application for temporary entry shall provide, without undue delay, information concerning the status of the application.
Article 5. Grant of Temporary Entry
1. The Parties shall make commitments in respect of the temporary entry of business persons covered by Article 2 (Scope). Each Party shall set out in Annex 6 a Schedule containing such commitments. These Schedules shall specify the conditions and limitations for entry and temporary stay, including the requirements and length of stay, for each category of business persons included in each Party's Schedule of commitments.
2. Where a Party makes a commitment under paragraph 1, that Party shall grant temporary entry or extension of temporary stay to the extent provided for in that commitment, provided that those business persons:
(a) follow prescribed application procedures for the immigration formality sought; and
(b) meet all relevant eligibility requirements for entry to the relevant Party.
3. Temporary entry granted to a business person pursuant to this Chapter does not exempt that person from the requirements needed to carry out a profession or activity according to the domestic law, and any applicable mandatory codes of practice made pursuant to the domestic law, in force in the Party authorising the temporary entry.
4. Any fees imposed in respect of the processing of an immigration formality shall be reasonable and based on the approximate cost of services rendered. 5. Neither Party may, except as provided for in its Schedule of commitments set out in Annex 6, impose or maintain any numerical restriction relating to temporary entry as a condition for entry under paragraph 1.
Article 6. Provision of Information
Each Party shall publish promptly on the internet where possible or, if not, otherwise make publicly available:
(a) the requirements for temporary entry under this Chapter, including explanatory material and relevant forms and documents that will enable business persons of the other Party to become acquainted with those requirements;
(b) explanatory material on all relevant immigration formalities which pertain to or affect the operation of this Chapter; and
(c) modifications or amendments to any requirements for temporary entry referred to in subparagraph (a) that affect the temporary entry of business persons and shall ensure that the information published pursuant to subparagraph (a) is updated by the date that the modification or amendment comes into effect.
Article 7. Contact Points
1. Each Party shall designate a contact point to facilitate communication and the effective implementation of this Chapter, and respond to inquiries from the other Party regarding regulations affecting the movement of business persons between the Parties or any matters covered in this Chapter, and shall provide details of this contact point to the other Party.
2. The Parties shall notify each other promptly of any amendments to the details of their contact points.
Article 8. Dispute Settlement
1. The Parties shall endeavour to settle any differences or disputes arising out of the implementation of this Chapter amicably through consultations or negotiations.
2. A Party shall not have recourse to Chapter 21 (Dispute Settlement) regarding a refusal to grant temporary entry under this Chapter unless:
(a) the matter involves a pattern of practice; and
(b) the business persons affected have exhausted all available domestic remedies regarding the particular matter.
3. The remedies referred to in subparagraph 2(b) of this Article shall be deemed to be exhausted if a final determination in the matter has not been issued by the other Party within a reasonable period of time after the date of the institution of proceedings for the remedy, including any proceedings for review or appeal, and the failure to issue such a determination is not attributable to delays caused by the business persons concerned.
Chapter 15. Air Transport Services
Article 1. Objectives
The objectives of this Chapter are to:
(a) create opportunities for air transport services between and beyond the Parties' respective flight information regions; and
(b) ensure the highest degree of safety and security in air transport services.
Article 2. Scope of Application
1. This Chapter shall be applied to the measures that a Party adopts or maintains in the matter of air transport services.
2. The Air Transport Agreement Between New Zealand and The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu ("Air Transport Agreement") is incorporated into this Agreement.
3. In case of incompatibility between this Agreement and the Air Transport Agreement, the latter shall prevail to the extent of the incompatibility.
Article 3. Civil Aviation Safety and Environment Cooperation
The Parties shall promote cooperation between their competent authorities for the purpose of establishing technical or operational arrangements that facilitate:
(a) the exchange of information on civil aviation safety and environment matters;
(b) mutual recognition of safety regulatory certification and/or processes; and
(c) trade in civil aviation-related goods and services.
Article 4. Dispute Settlement
1. Any dispute that arises with respect to the application or interpretation of this Chapter or the Air Transport Agreement shall be governed by the provisions of Chapter 21 (Dispute Settlement), except as provided in this Article.
2. If any dispute arises with respect to the interpretation or application of this Chapter or the Air Transport Agreement, the Parties shall in the first place endeavour to settle it by consultations in accordance with Article 14 of the Air Transport Agreement. If the Parties fail to resolve the dispute through such consultations, the complaining Party may request the establishment of an arbitral tribunal in accordance with Article 7 (Establishment of an Arbitral Tribunal) of Chapter 21 (Dispute Settlement).
3. The arbitrators appointed in accordance with Article 8 (Composition of Arbitral Tribunals) of Chapter 21 (Dispute Settlement) shall have specialised knowledge of, or experience in, air transport services.
Chapter 16. Trade and Labour
Article 1. Objectives
The objectives of this Chapter are to:
(a) promote the common aspiration that free trade and investment should lead to job creation, decent work and meaningful jobs for workers, with terms and conditions of employment that adhere to internationally recognised fundamental labour principles and rights;
(b) promote, through cooperation and dialogue, better understanding of each Party's labour systems, sound labour policies and practices, and the improved capacity and capability of each Party to address labour issues;
(c) promote the improvement of working conditions and living standards within the Parties, and protection and observance of fundamental labour principles and rights; and
(d) enable the discussion and exchange of views on labour issues of mutual interest or concern with a view to reaching consensus on those issues.
Article 2. Key Commitments
1. The Parties respect the right of each Party to set, administer and enforce its own labour laws, regulations, policies and practices according to its priorities.
2. Each Party shall respect, promote and recognise in its laws, regulations, policies and practices, the following internationally recognised fundamental labour principles and rights:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labour;
(c) the effective abolition of child labour; and
(d) the elimination of discrimination in respect of employment and occupation.
3. Each Party shall not weaken, derogate from, or fail to enforce or administer in a sustained or recurring manner, its labour laws, regulations and policies in a manner affecting trade or investment between the Parties.
4. Each Party shall ensure that its labour laws, regulations, policies and practices are not set or applied for trade protectionist purposes.
5. Each Party shall ensure that the processes and institutions for the operation and enforcement of its labour laws, regulations, policies and practices, are appropriately accessible by persons with a recognised interest under its law, fair and equitable and, except where the administration of justice otherwise requires, transparent.
6. The Parties recognise the desirability of clear, well understood and broadly consulted labour laws, regulations, policies and practices, and accordingly shall promote public awareness of their labour laws, regulations, policies and practices domestically.
Article 3. Institutional Arrangements
Contact Points
1. Each Party shall designate a contact point and inform the other Party of the identity of the contact point to facilitate communication between the Parties and to assist in the implementation of this Chapter, including coordination of labour cooperation activities pursuant to Article 4. Meeting of the Parties
2. A meeting of the Parties, comprised of senior labour officials or such other persons as deemed appropriate by each Party, shall take place within the first year after this Agreement enters into force, and subsequently thereafter as mutually decided by the Parties.
3. The functions of the meeting of the Parties include, but are not limited to:
(a) establishing, overseeing and evaluating the agreed cooperative activities;
(b) serving as a forum for dialogue on labour matters of mutual interest or concern;
(c) reviewing the operation and outcomes of this Chapter; and
(d) considering opportunities to collaborate on cooperative activities with other jurisdictions and organisations which both Parties are members of.
4. After three years, or as otherwise agreed, the Parties shall review the operation and outcomes of this Chapter, and may report the result of this review to the Joint Commission. This report may also be made public. Public Participation 5. Each Party may, as appropriate, consult or seek the advice of relevant stakeholders or experts over matters relating to the implementation of this Chapter.
6. Each Party may provide an opportunity for its domestic stakeholders to submit views or advice to it on matters relating to the operation of this Chapter, and shall seek to inform its public of activities undertaken pursuant to this Chapter.
7. The Parties shall prepare a report on their work at the end of each meeting of the Parties. The Parties' report shall be made public, unless the Parties decide otherwise.
Article 4. Cooperation
1. The Parties agree to cooperate on mutually agreed labour issues, including through the interaction and involvement, as appropriate, of government, industry, educational and research institutions of each Party.
2. The Parties have established the following indicative list of areas of potential cooperation, which may be pursued directly between them, at regional and/or multilateral levels. The areas of cooperation may include:
(a) labour laws and practices, including the promotion of fundamental principles and rights at work and the concept of decent work as defined by the International Labour Organisation;
(b) compliance and enforcement systems; management of labour disputes;
(c) labour consultation; labour/management co-operation;
(d) occupational safety and health;
(e) human capital development, training and employability; and
(f) any other areas of cooperation agreed by the Parties.
3. The Parties may encourage and facilitate cooperative activities, as appropriate, through the following modes of cooperation:
(a) exchanges of delegations, experts, scholars, teachers and instructors, including study visits and other technical exchanges;
(b) exchanges of information on standards, regulations and procedures and best practices to enhance mutual understanding of labour laws and institutions of the Parties;
(c) joint conferences, seminars, workshops, meetings, training sessions and outreach and education programmes;
(d) development of collaborative projects or demonstrations; and
(e) joint research projects, studies and reports.
4. Any cooperative activities agreed to shall take into consideration each Party's labour priorities and needs as well as the resources available. The resourcing of cooperative activities shall be decided by the Parties on a case by case basis. 5. Each Party may, as appropriate, invite the participation of its unions and employers or stakeholders in identifying potential areas for cooperation, and undertaking cooperative activities.
Article 5. Consultations
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter, and shall make every attempt through dialogue, consultation and cooperation to resolve any issue that might affect its operation.
2. Should any issue arise in relation to the implementation of this Chapter, a Party may request consultations with the other Party, through the contact point. The contact point shall identify the office or official responsible for the issue and assist as necessary in facilitating communications between the Parties.
3. The Parties shall decide a timeframe for completion of consultations under paragraph 2 of this Article, which shall not exceed 180 days, unless otherwise mutually agreed.
4. As part of the consultations, the Parties may seek advice or assistance from any person or body they consider appropriate.
5. If consultations fail to resolve the matter, either Party may request through the contact point that a joint meeting of the Parties be convened to consider the matter. The joint meeting shall take place, at an appropriately senior level, as soon as practicable, no later than 90 days following the request. The contact points shall liaise to verify and prepare a summary of the facts in relation to the issue before the joint meeting.
6. To assist its deliberations the joint meeting may decide to request advice from an independent expert or experts.
7. The joint meeting shall produce a report providing conclusions and recommendations on resolving the issue. The Parties shall implement the conclusions and recommendations of the joint meeting as soon as practicable.
8. Should the joint meeting be unable to reach agreement on the report, or should either Party have concerns about the implementation of the recommendations of the joint meeting, the issue may be referred to the Joint Commission for final consideration and resolution of the issue. 9. Neither Party may have recourse to Chapter 21 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 17. Trade and Environment
Article 1. Objectives
The objectives of this Chapter are to:
(a) contribute to the goal of sustainable development by promoting mutually supportive trade and environment policies; and
(b) enhance the capacities and capabilities of the Parties to address trade-related environmental issues including through cooperation.
Article 2. Key Commitments
1. The Parties respect the right of each Party to set, administer and enforce its own environmental laws, regulations, policies and practices according to its priorities.
2. Each Party reaffirms its commitment to fulfil its international environmental obligations, and its intention to continue to pursue high levels of environmental protection.
3. The Parties recognise the importance of mutually supportive trade and environment policies and practices that support efforts to improve environmental protection, promote sustainable management of natural resources and enhance trade between the Parties. Accordingly:
(a) each Party shall not weaken, derogate from, or fail to enforce or administer in a sustained or recurring manner, its environmental laws, regulations and policies in a manner affecting trade or investment between the Parties; and
(b) each Party shall ensure that its environmental laws, regulations and policies and practices are not set or applied for trade protectionist purposes.
4. Each Party acknowledges the importance of transparency and appropriate communication and consultation, in the development or implementation of any measures aimed at protecting the environment that may affect trade or investment between the Parties.
5. Each Party shall promote public awareness of its environmental laws, regulations, policies and practices domestically, and ensure that the processes and institutions for the operation and enforcement of its environmental laws and regulations are fair, equitable and transparent.
Article 3. Environmental Goods and Services
1. The Parties recognise that facilitating trade in environmental goods and services through elimination of tariff and non-tariff barriers can enhance economic performance and address global environmental challenges including climate change; natural resources protection; water, soil and air pollution; management of waste and waste water; and depletion of the ozone layer.
2. Accordingly, the Parties shall:
(a) eliminate all tariffs on environmental goods (13) upon entry into force of this Agreement;
(b) facilitate the movement of business persons involved in the sale, delivery or installation of environmental goods or the supply of environmental services (14) in accordance with Chapter 14 (Temporary Entry of Business Persons);
(c) endeavour to address any non-tariff barriers identified by either Party that impede trade in environmental goods or services, working through the Joint Commission as appropriate; and
(d) encourage the application of good regulatory principles to the design of any future standards and regulations relating to environmental goods and services, including transparency, proportionality, a preference for least trade-distorting measures, and the use of internationally agreed standards.
Article 4. Voluntary Market Mechanisms
1. The Parties recognise the substantial benefits brought by international trade and investment, and the opportunity for enterprises, including those engaged in international trade and investment, to implement policies that seek to strengthen coherence between trade and investment, economic and environmental objectives.
2. The Parties recognise that flexible, voluntary mechanisms, such as voluntary sharing of information and expertise, voluntary auditing and reporting, and market-based incentives, can contribute to the achievement and maintenance of high levels of environmental protection. Accordingly, each Party should encourage:
(a) the development and use of flexible and voluntary mechanisms to protect natural resources and the environment in its jurisdiction; and
(b) businesses and business organisations, non-governmental organisations, and other interested persons that are developing or applying voluntary environmental goals or standards, including labelling or other associated measures, to do so in a manner that is transparent; does not have the effect of creating unnecessary obstacles to trade; does not constitute a means of arbitrary or unjustified discrimination between the Parties; and base them, where appropriate, on internationally recognised standards, recommendations or guidelines.
Article 5. Cooperation
1. The Parties agree to cooperate on mutually agreed environmental issues, including through the interaction and involvement, as appropriate, of government, industry, educational and research institutions of each Party.
2. The Parties may encourage and facilitate cooperative activities, as appropriate, through the following modes of cooperation:
(a) exchange of environmental experts and management personnel, including study visits and other technical exchanges;
(b) exchange of technical information and publications to enhance mutual understanding of environmental laws, policies and institutions of the Parties;
(c) joint conferences, seminars, workshops and meetings; and
(d) collaborative research on subjects of mutual interest.
3. To facilitate identification of cooperative activities, the Parties shall, as a first step after this Agreement enters into force, exchange lists of their initial priorities.
4. Any cooperative activities agreed to shall take into consideration each Party's environment priorities and needs as well as the resources available. The resourcing of cooperative activities shall be decided by the Parties on a case by case basis. 5. Each Party may, as appropriate, involve its non-government sectors and other organisations in identifying potential areas for cooperation, and in undertaking cooperative activities.
Article 6. Institutional Arrangements
Contact Points
1. Each Party shall designate a contact point or contact points to facilitate communication between the Parties and to assist in the implementation of this Chapter, including coordination of environmental cooperation activities pursuant to Article 5. Meeting of the Parties
2. A meeting of the Parties, comprised of senior environment officials or such other persons as deemed appropriate by each Party, shall take place within the first year after this Agreement enters into force, and subsequently thereafter as mutually decided by the Parties.
3. The functions of the meeting of the Parties include, but are not limited to:
(a) establishing, overseeing and evaluating cooperative activities;
(b) serving as a forum for dialogue on environmental matters of mutual interest or concern; and
(c) reviewing the operation and outcomes of this Chapter.
4. After three years, or as otherwise agreed, the Parties shall review the operation and outcomes of this Chapter, and may report the result of this review to the Joint Commission. This report may also be made public. Public Participation 5. Each Party may, as appropriate, consult or seek the advice of relevant stakeholders or experts over matters relating to the implementation of this Chapter.
6. Each Party may provide an opportunity for its domestic stakeholders to submit views or advice to it on matters relating to the operation of this Chapter, and shall seek to inform its public of activities undertaken pursuant to this Chapter.
7. The Parties shall prepare a report on their work at the end of each meeting of the Parties. The Parties' report shall be made public, unless the Parties decide otherwise.
Article 7. Consultations
1. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter, and shall make every attempt through dialogue, consultation and cooperation to resolve any issue that might arise.
2. Should any issue arise in relation to the implementation of this Chapter, a Party may request consultations with the other Party, through its contact point. The contact point shall identify the office or official responsible for the issue and assist as necessary in facilitating communications between the Parties.
3. The Parties shall decide a timeframe for completion of consultations under paragraph 2 of this Article, which shall not exceed 180 days, unless otherwise mutually agreed.
4. As part of the consultations, the Parties may seek advice or assistance from any person or body they consider appropriate. 5. If consultations fail to resolve the matter, either Party may request through the Contact Point that a joint meeting of the Parties be convened to consider the matter. The joint meeting shall take place, at an appropriately senior level, as soon as practicable, and no later than 90 days following the request. The contact points shall liaise to verify and prepare a summary of the facts in relation to the issue before the joint meeting.
6. To assist its deliberations the joint meeting may decide to request advice from an independent expert or experts.
7. The joint meeting shall produce a report providing conclusions and recommendations on resolving the issue. The Parties shall implement the conclusions and recommendations of the joint meeting as soon as practicable.
8. Should the joint meeting be unable to reach agreement on the report, or should either Party have concerns about the implementation of the recommendations of the joint meeting, the issue may be referred to the Joint Commission for final consideration and resolution of the issue.
9. Neither Party may have recourse to Chapter 21 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 18. Film and Television Co-production
Article 1. Definitions
For the purposes of this Chapter:
competent authority means the authority designated as such by each Party in the Implementing Arrangement on Film and Television Co-Production concluded in accordance with Article 14 of this Chapter;
co-producer means one or more natural persons of a Party involved in the making of a co-production film, or, in relation to non-Party co-productions in accordance with Article 5 of this Chapter, natural persons of the non-Party involved in the making of a co-production film;
co-production film means a film made by one or more co-producers of one Party in co-operation with one or more co-producers of the other Party under a project approved jointly by the competent authorities, and includes a film to which Article 5 of this Chapter applies; and
film means an aggregate of images, or of images and sounds, embodied in any material, and includes television and video recordings, animations and digital format productions.
Article 2. Recognition as a Domestic Film and Entitlement to Benefits
1. A co-production film shall be fully entitled to all the benefits which are or may be accorded to domestic films by each of the Parties under their respective laws.
2. Any benefits which may be granted within either Party in relation to a co-production film shall accrue to the co-producer who is permitted to claim those benefits in accordance with the law of that Party, subject to any other relevant international obligations.
Article 3. Approval of Projects
1. Co-production films shall require, prior to the commencement of shooting, joint approval of the competent authorities. Approvals shall be in writing and shall specify the conditions upon which approval is granted. None of the co-producers shall be linked by common management, ownership or control, save to the extent that it is inherent in the making of the co-production film itself.
2. In considering proposals for the making of a co-production film, competent authorities, acting jointly and with due regard for their respective policies and guidelines, shall apply the rules set out in the Implementing Arrangement on Film and Television Co-Production concluded in accordance with Article 14 of this Chapter.
Article 4. Contributions
1. For each co-production film:
(a) the performing, technical, craft and creative participation of the co-producers; and
(b) production expenditure in each of the co-producer's countries, shall be in reasonable proportion to their respective financial contributions.
2. Both the financial contribution, and the performing, technical, craft and creative participation of each co-producer shall account for at least 20% (twenty per cent) of the total effort in making the co-production film.
3. Notwithstanding the contribution rules set out in paragraphs 1 and 2 of this Article, in exceptional cases, competent authorities may approve jointly co-production projects where:
(a) the contribution of one of the co-producers is limited to the provision of finance only, in which case approvals shall be limited to projects where the proposed finance-only contribution is no greater than 50% (fifty per cent) of the total costs of the film; and
(b) the competent authorities consider that the project would further the objectives of this Agreement and should be approved accordingly.
Article 5. Co-productions Involving Non-parties
1. Where either Party maintains a film co-production agreement with a non-Party, the competent authorities may approve a project for a co-production film under this Chapter that is to be made in conjunction with a co-producer from that non-Party.
2. Approvals under this Article shall be limited to proposals in which the contribution of the non-Party co-producer is no greater than the lesser of the individual contributions of the Parties' co-producers.
Article 6. Participation
1. Persons participating in a co-production film shall be natural persons of the Parties and, where there is a third non-Party co-producer, natural persons of the non-Party.
2. Subject to the approval of the competent authorities:
(a) where script or financing dictates, restricted numbers of performers from other countries may be engaged; and
(b) in exceptional circumstances, restricted numbers of technical personnel from other countries may be engaged.
Article 7. Making Up to First-release Print
1. Co-production films shall be made and processed up to the manufacture of the first-release print in either or both of the Parties and/or, where there is a third non-Party co-producer, in that non-Party.
2. At least 90% (ninety per cent) of the footage included in a co-production film shall be specially shot or created for the film unless otherwise approved by the competent authorities.
Article 8. Location Filming
1. Competent authorities may approve location filming in places, countries, or locations other than those of the participating co-producers.
2. Notwithstanding Article 6 of this Chapter, where location filming is approved in accordance with this Article, persons of the country in which location filming takes place may be employed as crowd artists, in small roles, or as additional employees whose services are necessary for the location work to be undertaken.
Article 9. Soundtrack
1. The original soundtrack of each co-production film shall be made in a commonly used or indigenous language of the Parties, including English, Mandarin, Māori, or in any combination of those permitted languages.
2. Narration, dubbing or subtitling in any other commonly used language or dialect of the Parties shall be permitted.
3. Post-release print dubbing into any other language may be carried out in non-Parties.
4. The soundtrack may contain sections of dialogue in any language in so far as is required by the script.
Article 10. Acknowledgments and Credits
A co-production film and the promotional material associated with it shall include either a credit title indicating that the film is an official co-production of New Zealand and Chinese Taipei film authorities or, where relevant, a credit which reflects the participation of the Parties and the country of a third non-Party co-producer.
Article 11. Immigration Facilitation
Subject to meeting normal immigration requirements, each of the Parties shall permit natural persons of the Parties and co-producing non-Parties to enter and remain in their jurisdiction for the purpose of making or promoting a co-production film.
