Trans-Pacific Partnership (TPP) (2016)
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(1), (2) and (3) None. 

(4) No commitments, except as indicated in Labour Code restriction. 

For the purposes of this entry: 

(1) refers to the supply of a service from the territory of one Party into the territory of another Party; 

(2) refers to the supply of a service in the territory of one Party to a person of another Party; 

(3) refers to the supply of a service in the territory of a Party by an investor of another Party or by a covered investment; and 

(4) refers to the supply of a service by a national of a Party in the territory of another Party. 

(2) For greater certainty, nothing in this entry shall be construed to prevent the adoption or maintenance of any measure regarding the supply of a financial service by a covered investment that is not a covered investment in a financial institution.  

SCHEDULE OF JAPAN

INTRODUCTORY NOTES 

1. In the interpretation of an entry, all elements of the entry shall be considered. The Description element shall prevail over all other elements. 

2. For the purposes of this Annex, the term JSIC means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised in October, 2013. 

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4) Senior Management and Boards of Directors (Article 9.11)

Description: Investment

1. When transferring or disposing of its equity interests in, or the assets of, a state enterprise or a governmental entity, Japan reserves the right to: (a) prohibit or impose limitations on the ownership of such interests or assets by investors of another Party or their investments; (b) impose limitations on the ability of investors of another Party or their investments as owners of such interests or assets to control any resulting enterprise; or (c) adopt or maintain any measure relating to the nationality of executives, managers or members of the board of directors of any resulting enterprise.

2. Notwithstanding paragraph 1, the central level of the Government of Japan shall not adopt any prohibition, limitation or measure referred to in paragraph 1 by new laws or regulations following the initial transfer from the central level of government of Japan to an investor of the interests or assets referred to in paragraph 1. For greater certainty, the central level of government of Japan can maintain such prohibition, limitation or measure that is adopted or maintained at the initial transfer.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments in or the supply of telegraph services, betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes, minting and sale of coinage, and postal services in Japan. (1), (2)

Existing Measures: Telecommunications Business Law (Law No. 86 of 1984) Supplementary Provisions, Article 5 Postal Law (Law No. 165 of 1947), Article 2 Law Concerning Correspondence Delivery Provided by Private Operators (Law No. 99 of 2002) Horse Racing Law (Law No. 158 of 1948), Article 1 Law relating to Motorboat Racing (Law No. 242 of 1951), Article 2 Bicycle Racing Law (Law No. 209 of 1948), Article 1 Auto Racing Law (Law No. 208 of 1950), Article 3 Lottery Law (Law No. 144 of 1948), Article 4 The Law relating to Unit of Currency and Issue of Coin (Law No. 42 of 1987), Article 10, Sports Promotion Lottery Law (Law No. 63 of 1998), Article 3

(1) At the date of entry into force of this Agreement, telegraph services, betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes, and minting and sale of coinage in Japan are restricted to designated enterprises or governmental entities.
(2) For the purposes of this entry, “postal services” means delivery of other persons’ correspondence (tanin-no-shinsho-no-sotatsu) specified in paragraph 2 of Article 4 of Postal Law (Law No. 165 of 1947) and correspondence delivery service (shinshobin-no-ekimu) within the meaning of the Law Concerning Correspondence Delivery Provided by Private Operators (Law No. 99 of 2002), but does not include special correspondence delivery services (tokutei-shinshobin-ekimu) within the meaning of the latter Law. Services not included in this definition include delivery of parcels, packages, goods, direct mail and periodicals. 

Sector: All (Unrecognised or Technically Unfeasible Services)

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to services other than those recognised or other than those that should have been recognised by the Government of Japan owing to the circumstances at the date of entry into force of this Agreement. Any services classified positively and explicitly in JSIC or CPC, at the date of entry into force of this Agreement should have been recognised by the Government of Japan at that time. Japan reserves the right to adopt or maintain any measure relating to the supply of services in any mode of supply in which those services were not technically feasible at the date of entry into force of this Agreement.

Existing Measures:

Sector: Aerospace Industry 

Sub-Sector: Space industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the investments in space industry. Japan reserves the right to adopt or maintain any measure relating to the supply of services in space industry, including: (a) services based on technological inducement contracts for importing technology for development, production or use; (b) production services on fee or contract basis; (c) repair and maintenance services; and (d) space transportation services.

Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30

Sector: Arms and Explosives Industry

Sub-Sector: Arms industry, Explosives manufacturing industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the investment in the arms industry and explosives manufacturing industry. Japan reserves the right to adopt or maintain any measure relating to the supply of services in the arms industry and explosives manufacturing industry, including: (a) services based on technological inducement contracts for importing technology for development, production or use; (b) production services on fee or contract basis; and (c) repair and maintenance services.

Existing Measures: Ordnance Manufacturing Law (Law No. 145 of 1953), Article 5 Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5

Sector: Information and Communications

Sub-Sector: Broadcasting industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in broadcasting industry. For the purposes of this entry, “broadcasting” means the transmission of telecommunications with the aim of direct reception by the public (paragraph 1 of Article 2 of the Broadcast Law (Law No. 132 of 1950) and does not include on-demand services including such services supplied over the internet.

Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Radio Law (Law No. 131 of 1950), Chapter 2 Broadcast Law, Chapter 2, Chapter 5, Chapter 6, Chapter 7 and Chapter 8

Sector: Education, Learning Support

Sub-Sector: Primary and secondary educational services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of primary and secondary educational services.

Existing Measures: Fundamental Law of Education (Law No. 120 of 2006), Article 6 School Education Law (Law No. 26 of 1947), Article 2 Private School Law (Law No. 270 of 1949), Article 3 Law Concerning Advancement of Comprehensive Service Related to Education, Child Care, etc. of Preschool Children (Law No.77 of 2005)

Sector: Energy

Sub-Sector: Electricity utility industry, Gas utility industry, Nuclear energy industry

Industry Classification (3): JSIC 0519*1 Miscellaneous metal mining JSIC 2391 Nuclear fuel JSIC 281*2 Electronic devices JSIC 282*2 Electronic parts JSIC 289*2 Miscellaneous electronic parts, devices and electronic circuits JSIC 291*2 Electrical generating, transmission, and distribution apparatus JSIC 292*2 Industrial electrical apparatus JSIC 2952*2 Primary batteries (dry and wet) JSIC 296*2 Electronic equipment JSIC 297*2 Electric measuring instruments JSIC 299*2 Miscellaneous electrical machinery equipment and supplies JSIC 30*2 Manufacture of information and communication electronics equipment JSIC 313*2 Shipbuilding and repairing, and marine engines JSIC 3159*2 Miscellaneous industrial trucks and parts and accessories JSIC 3199*2 Transportation equipment, n.e.c JSIC 33 Production, transmission and distribution of electricity JSIC 34 Production and distribution of gas JSIC 8899*2 Waste disposal business, n.e.c. JSIC 9011*2 General machine repair shops, except construction and mining machinery JSIC 902*2 Electrical machinery, apparatus, appliances and supplies repair shop.

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) (4) Senior Management and Boards of Directors (Article 9.11) Most-Favoured-Nation Treatment (Article 10.4) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in the energy industry listed in the “sub-sector” element.

Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5 Electricity Business Law (Law No.170 of 1964), Article 5 Gas Business Law (Law No.51 of 1954), Article 5 Specified Radioactive Waste Final Disposal Law (Law No. 117 of 2000), Chapter 5

(3) An asterisk (*1) on the JSIC number indicates that the activities covered by this entry under such number are limited to nuclear materials. An asterisk (*2) on the JSIC number indicates that the activities covered by this entry under such number are limited to the activities related to the nuclear energy industry.
(4) With respect to the obligation under Article 9.10 (Performance Requirements), this entry applies only to measures which are not inconsistent with the obligations under the Agreement on Trade-Related Investment Measures.

Sector: Fisheries and Services incidental to Fisheries

Sub-Sector: Fisheries within the territorial sea, internal waters, exclusive economic zone and continental shelf

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in fisheries in the territorial sea, internal waters, exclusive economic zone, and continental shelf of Japan. For the purposes of this entry, the term “fisheries” means the work of taking and cultivation of aquatic resources, including the following fisheries related services: (a) investigation of aquatic resources without taking such resources; (b) luring of aquatic resources; (c) preservation and processing of fish catches; (d) transportation of fish catches and fish products; and (e) provision of supplies to other vessels used for fisheries.

Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Law for Regulation of Fishing Operation by Foreign Nationals (Law No. 60 of 1967), Article 3, Article 4 and Article 6 Law Concerning the Exercise of Sovereign Rights concerning Fisheries in the Exclusive Economic Zones (Law No. 76 of 1996), Article 4, Article 5, Article 7, Article 8, Article 9, Article 10, Article 11, Article 12 and 14

Sector: Land Transaction

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

With respect to the acquisition or lease of land properties in Japan, prohibitions or restrictions may be imposed by Cabinet Order on foreign nationals or legal persons, where Japanese nationals or legal persons are placed under identical or similar prohibitions or restrictions in the foreign country.

Existing Measures: Alien Land Law (Law No. 42 of 1925), Article 1

Sector: Public Law Enforcement and Correctional Services and Social Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in public law enforcement and correctional services, and in social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public training, health, child care and public housing.

Existing Measures:

Sector: Security Guard Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the supply of security guard services.

Existing Measures: Security Business Law (Law No. 117 of 1972), Article 4 and Article 5

Sector: Transport

Sub-Sector: Air transport

Industry Classification:

Obligations Concerned: National Treatment (Articles 9.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Japan reserves the right to adopt or maintain any measure with respect to investment in airports or airport operation services as defined in Article 10.1 (Definitions).

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

1. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement in force on, or signed prior to, the date of entry into force of this Agreement.

2. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement, other than the agreement referred to in paragraph 1, involving: (a) aviation; (b) fisheries; or (c) maritime matters, including salvage.

Existing Measures:

SCHEDULE OF MALAYSIA

Sector: Land and Real Estate

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Acquisitions or dealings of land by non-citizens and enterprises owned by foreign nationals must be approved by the relevant State Authority, subject to such conditions and restrictions as may be imposed by that Authority.

Existing Measures: Land Acquisition Act, 1960 [Act 486] Land Conservation Act 1960 [Act 385] National Land Code 1965 [Act 625] National Land Code (Penang and Malacca Titles) Act 1963 [Act 518] Strata Titles Act 1985 [Act 318] Building and Common Property (Maintenance and Management) Act 2007 [Act 663] Strata Management Act 2013 [Act 757] Federal Lands Commissioner Act 1957(Revised 1988) [Act 349] Land (Group Settlement Areas) Act 1960 [Act 530] Malay Reservations Enactment 1933 [F.M.S Cap 142] Kedah Enactment No 63 (Malay Reservations) Kelantan Malay Reservations Enactment, 1930 Kelantan Land Settlement Act 1955 (Revised 1991) [Act 460] Perlis Malay Reservations Enactment 1935 Perlis Land Settlement Enactment 1966 Johore Malay Reservation Enactment 1936 Terengganu Malay Reservation Enactment 1941 Terengganu Settlement Enactment 1856 Sabah Land Ordinance [Sabah Cap 68] Sabah Land Acquisition Ordinance [Sabah Cap 69] Sarawak Land Code 1958 [Sarawak Cap 81] Local Government Act 1976 [Act 171] Town and Country Planning Act 1976 [Act 172] Federal Territory (Planning) Act 1982 [Act 267] Federal Capital Act 1960 [Act 190] Street, Drainage and Building Act 1974 [Act 133]

Sector: Oil and Gas

Obligations Concerned: National Treatment (Article 9.4 and 10.3) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Petroliam Nasional Berhad (PETRONAS) and its successor are vested with the entire ownership in, and the exclusive rights, powers, liberties and privileges, which shall be irrevocable, in exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia. PETRONAS in its role as the exclusive owner of the petroleum resources, decides on the form and conditions of contractual arrangements available for foreign participation and selection of the contract parties.

Existing Measures: Petroleum Development Act 1974 [Act 144]

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and 10.3) Most-Favoured-Nation Treatment (Article 9.5 and 10.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Market Access (Article 10.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures affecting the: (a) full or partial devolvement to the private sector of services provided in the exercise of governmental authority; (b) divestment of its equity interests in, or the assets of, an enterprise that is wholly or partially owned by the Malaysian government; and (c) privatisation of government owned entities or assets. The description above pertains only to the initial transfer or disposal of such interest, and for subsequent transfers or disposals that are for strategic sectors announced through the Malaysia Plan. For greater certainty, where Malaysia transfers any interest in an existing state enterprise to another state enterprise, such transfer shall not be considered to be an initial transfer. Where the transfer or disposal of an interest in an existing state enterprise is undertaken either partially or sequentially, the right shall apply separately to each phase.

Existing Measures: Minister of Finance (Incorporation) Act 1957 [Act 375] Privatisation Master Plan Guidelines on Privatisation

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measure that provides assistance to Bumiputera for the purpose of supporting Bumiputera participation in the Malaysian market through the creation of new and additional licences or permits for Bumiputera eligible to receive such assistance, provided that such measures shall not affect the rights of existing licence and permit holders or future applicants for licences and permits in sectors where foreign participation is permitted.

Existing Measures: Policies and Ministerial statements Federal Constitution Aboriginal Peoples Act 1954 [Act 134] Interpretation (Definition of Native) Ordinance 1952 [Cap. 64] Treasury Circular Year 2014

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Malaysia reserves the right to adopt or maintain any measure relating to National and State unit trusts.

Sector: All 

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and 10.4) 

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. Malaysia reserves the right to adopt or maintain any measure that accords differential treatment to ASEAN member states under any ASEAN agreement open to participation by any ASEAN member state, in force or signed after the date of entry into force of this Agreement. With regard to the sectors listed below, Malaysia reserves the right to adopt or maintain any measure that accords rights, preferences and differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving: (a) aviation matters; (b) maritime and port; (c) broadcasting; (d) space transportation (1); and (e) fisheries.

(1) Any such measure shall be implemented in a manner consistent with Malaysia’s commitments under Article II of GATS. For greater certainty, subparagraph (d) does not apply with respect to Malaysia’s obligations under Article 11.4 (Most-Favoured Nation Treatment), to the sectors or sub-sectors for which Malaysia has made specific commitments under any bilateral or multilateral international agreement in force or signed prior to the date or entry into force of this Agreement, nor to the sectors for which the following entries are made in the Schedule of Malaysia to Annex I: Annex I – Malaysia – 7, Annex I – Malaysia – 8, Annex I – Malaysia – 11, Annex I – Malaysia – 12, and Annex I – Malaysia – 23.

Sector: Manufacture, assembly, marketing and distribution of explosives, weapons, ammunitions, as well as military-related equipment / devices, and similar products

Obligations Concerned: National Treatment (Article 9.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Malaysia reserves the right to adopt or maintain any measures affecting the arms and explosives sector.

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