Article 14.3. Islamic Economy Development
1. The Parties recognize that the various sectors of the Islamic economy consist of, but are not limited to:
(a) raw materials;
(b) food and beverages;
(c) pharmaceuticals and cosmetics;
(d) modest fashion;
(e) tourism;
(f) media and recreation; and
(g) Islamic finance.
2. The Parties shall strive to facilitate and promote investment, financing, trade in, and dissemination of, goods and services that contribute to the development of the Islamic economy.
3. The Parties underline the importance of promoting inclusive economic growth through supporting the contribution of micro, small, and medium-sized enterprises to the Islamic economy.
4. The Parties agree that sectors related to the Islamic economy need to be provided with capacity building programs to support Islamic economic development.
5. The Parties emphasize the importance of information, innovation, education, training, empowerment, and digitalization in multiple sectors of the Islamic economy at all levels in order to contribute to Islamic economic development.
6. The Parties agree to exchange views and conduct mutual cooperation in this area, including bilaterally, regionally, or multilaterally, as appropriate.
Article 14.4. Mutual Recognition on Halal Certification
1. For the purposes of this Agreement, the halal standards shall apply to all goods and related services whose consumption is determined through Islamic principles.
2. The Parties agree to pursue the following, decided by the Committee specified in Article 14.12 (Committee on Islamic Economy Cooperation), for the purposes of mutual recognition:
(a) principles for recognition of the equivalence and acceptance of conformity assessment results as applicable within the scope of this Agreement;
(b) a mechanism for providing the halal conformity assessment in the absence of International Halal Accreditation Forum (IHAF) recognition;
(c) principles for mutual recognition of halal logos, marks, or labels;
(d) a process of mutual recognition of halal certificates;
(e) identification of various responsibilities associated with mutual recognition such as, but not limited to, notification to the relevant stakeholders about the mutual recognition agreement and its amendments; and
(f) striving to be active IHAF members and support its implementation.
3. Each Party has the right to impose any additional control measures for Halal products entering that Party’s territory such as shipment inspection, laboratory testing, and market surveillance, or any national food control programs as an added food safety measure to ensure Halal integrity of the supply chain, with the objective of simplifying the processes and without creating unnecessary obstacles to trade.
4. Each Party shall give the other Party a reasonable opportunity to prove that the production process, standardization, requirements, or certification obtained and completed in the territory of the other Party can be recognized based on common criteria and the mutual recognition process derived from the principles and conditions as agreed by both Parties.
5. The Parties agree to negotiate and finalise an Annex on mutual recognition on halal goods and related services within 12 months from the date of entry into force of this Agreement.
6. The Parties shall jointly work, when deemed necessary, on the halal accreditation of conformity assessment bodies in keeping with internationally accepted principles and rules, within a framework of international organizations which both Parties are members of.
7. The Parties shall endeavour to work together, in cooperation with relevant intergovernmental and non-governmental organizations, towards the establishment and adoption of common international halal standards and criteria for goods and services.
Article 14.5. Cooperation In Halal Goods and Services
1. The Parties recognise the importance of developing sectors related to halal goods and services including, but not limited to, foods and beverages, pharmaceuticals and cosmetics, modest fashion, tourism, and media and recreation.
2. For the purposes of paragraph 1, and in a manner consistent with Article 14.2 (Context, Objectives, and Scope), the Parties commit to cooperate to:
(a) promote and provide necessary support for economic cooperation between enterprises relating to halal goods and services that operate in both Parties’ territories, in accordance with their respective laws and regulations;
(b) facilitate and promote cross-border investment between both Parties that contribute to the development of sectors related to halal goods and services including, but not limited to, halal funds for the Islamic economy, halal industrial parks or estates, halal ports, special economic zones for tourism, and other supporting infrastructure for halal industry;
(c) develop and implement an effective and integrated value chain of halal goods and services between both Parties’ territories;
(d) establish international halal hubs in regions of each Party in order to expand economic cooperation on the Islamic economy with other Organisation of Islamic Cooperation (OIC) member countries;
(e) develop and promote the Halal Assurance System on halal industrial estate for securing domestic needs and reaching export market potential for both Parties; and
(f) develop guiding principles, technical guidance, or best practices in order to advance sectors related to halal goods and services.
Article 14.6. Islamic Finance and Social Finance
The Parties recognise the importance of developing the sector of Islamic finance and social finance, in which they agree to cooperate to:
(a) integrate Islamic finance and Islamic social finance with sectors related to halal goods and services;
(b) promote and facilitate cross-border investment between the Parties that contributes to Islamic financial sector development;
(c) facilitating the operation of Islamic financial institutions of one Party within the other Party’s territory, including by licensing activities and business process support, in compliance with each Party’s laws and regulations;
(d) promote the effective utilization of Islamic social finance, including but not limited to zakat and waqf management, productive and impact-based waqf schemes, and cross- border waqf fund allocation between both Parties that contribute to Islamic social finance development;
(e) collaborate in harmonizing standards in Shariah-compliant finance with the involvement of relevant stakeholders of both Parties; and
(f) promote the integration of islamic finance with sustainable finance.
Article 14.7. Micro, Small and Medium Enterprises
The Parties recognize the importance of developing micro, small and medium-sized enterprises (MSMEs) operating in sectors of the Islamic economy, in accordance with promoting inclusive growth, where they agree to cooperate to:
(a) provide effective literacy and empowerment programs in order to strengthen and upscale MSMEs of the Islamic economy; and
(b) integrate MSMEs in both Parties into the global value chain of sectors of the Islamic economy.
Article 14.8. Digital Islamic Economy
1. The Parties recognise the importance of the digitalization of the Islamic economy;
2. The Parties agree to cooperate to expand all aspects of the digital Islamic economy between both Parties, including, but not limited to, data centers of the Islamic economy, integrated information systems or digitized value chains for halal traceability, digital Islamic economic ecosystem, incubator facilities, and Shariah-compliant venture capital for digital startups in the Islamic economy.
Article 14.9. Cooperation In Research, Innovation, and Human Resources
1. The Parties agree to strengthen their cooperation on jointly enhancing their capabilities in human resources and collaborating on research and innovation in order to achieve a global competitive edge in sectors of the Islamic economy.
2. For the purposes of paragraph 1, the Parties agree to cooperate on initiatives including, but not limited to, formulating competency standard for human resources in the Islamic economy, developing halal incubation centers for empowering micro and small enterprises, and supporting halal research and development (R&D) centers and universities for producing breakthrough innovation related to sectors of the Islamic economy.
Article 14.10. Cooperation In International Fora
The Parties agree to strengthen their cooperation on issues of mutual interest to jointly promote the Islamic economy, including its trade and investment-related aspects, and the harmonization of standards in relevant bilateral, regional, and multilateral fora.
Article 14.11. Transparency and Exchange of Information In the Islamic Economy
1. Each Party shall disclose its regulations and procedures for trade in goods, services, and processes under the Islamic economy. Each Party shall endeavour to provide and update that information electronically and in the English language. Each Party shall communicate any additions, amendments, or exclusions.
2. The Parties shall exchange information on promotion and dissemination of halal and Islamic certifications or accreditations, conformity assessments, conformity schemes, permissible commercial information related to the Islamic economy, and other related areas of mutual interest to respective government bodies, government-owned enterprises, and private business entities.
3. Each Party may request the other Party to provide permissible information on any matter arising under this Chapter. A Party receiving a request under this paragraph shall provide that information within 60 days, and, if possible, by electronic means, addressed to the contact point identified in Article 14.15 (Contact Points).
4. For greater certainty, each Party may request technical discussions with the other Party regarding technical regulations and equivalency procedures that may have a significant effect on trade.
5. The Parties shall discuss the matter raised within 60 days of the date of the request. If the requesting Party considers that the matter is urgent, it may request that discussions take place within a shorter time frame. The Parties shall attempt to obtain satisfactory resolution of the matter as expeditiously as possible, recognising that the time required to resolve a matter will depend on a variety of factors, and that it may not be possible to resolve every matter through technical discussions.
Article 14.12. Committee on Islamic Economy Cooperation
1. The Parties hereby establish a Committee on Islamic Economy Cooperation under the Joint Committee, which shall comprise representatives of the Parties, to further the trade of goods and services, as well as investment in Islamic economy.
2. This Committee is also responsible for issues related to mutual recognition under Article 14.4 (Mutual Recognition on Halal Certification).
3. The Committee, at its discretion, may form subcommittees or working groups either on a long term or temporary basis as needed.
4. The Committee should meet once a year or at closer intervals as needed.
Article 14.13. Review
The Committee shall periodically review progress achieved in pursuing the implementation of the provisions and outcomes of this Chapter and shall consider relevant international developments to identify areas where further action could promote these objectives.
Article 14.14. Contact Points
1. Within 60 days of the date of entry into force of this Agreement, each Party shall designate a contact point for matters arising under this Chapter.
2. Each Party shall promptly notify the other Party of any changes to its contact point or the details of the relevant officials.
3. The responsibilities of each contact point shall include:
(a) communicating with the other Party’s contact points, including facilitating discussions, requests, and the timely exchange of information on matters arising under this Chapter;
(b) communicating with and coordinating the involvement of relevant government agencies, including regulatory authorities, in its territory on relevant matters pertaining to this Chapter;
(c) consulting and, if appropriate, coordinating with interested persons in its territory on relevant matters pertaining to this Chapter; and
(d) carrying out any additional responsibilities specified by the Committee on Islamic Economy Cooperation.
Chapter 15. ECONOMIC COOPERATION
Article 15.1. Objective
1. The Parties reaffirm the importance of economic cooperation activities between them and shall promote cooperation under this Agreement for their mutual benefit, taking into account ongoing efforts and resources available under other programs between the Parties, so as to facilitate trade and investment between the Parties and foster their economic growth.
2. Economic cooperation under this Agreement shall be built upon a common understanding between the Parties to support the implementation of this Agreement, with the objective of maximising its benefits, supporting pathways to trade and investment facilitation, and further improving market access and openness to contribute to the sustainable economic growth and prosperity of the Parties, through enhancing the Parties’ capacities, especially in the sectors of the economy affected by it.
3. The Parties acknowledge the provisions that encourage and facilitate economic cooperation included in various Chapters of this Agreement.
Article 15.2. Scope
Economic cooperation under this Chapter shall support the effectiveness and efficiency of the implementation and utilisation of this Agreement through activities that relate to trade and investment as set out in the Implementing Arrangement to be agreed by the Parties and those further developed in the Work Programme.
Article 15.3. Committee on Economic Cooperation
1. The Parties hereby establish a Committee on Economic Cooperation under the Joint Committee, which shall comprises representatives of the Parties.
2. The functions of the Committee shall include:
(a) monitor and assess the implementation of this Chapter;
(b) identify new opportunities and agree on new ideas for prospective cooperation or capacity building activities;
(c) develop and establish the Work Programme;
(d) coordinate, monitor, and review progress of the Implementing Arrangement and the Work Programme to assess their overall effectiveness and contribution to the implementation and operation of this Chapter;
(e) may modify or suggest modifications to the Work Programme through periodic evaluations;
(f) cooperate with other Committees or subsidiary bodies established under this Agreement to perform stocktaking, monitoring, and benchmarking on any issues related to the implementation of this Agreement, as well as to provide feedback and assistance in the implementation and operation of this Chapter; and
(g) report to and, if deemed necessary, consult with the Joint Committee particularly in relation to the implementation and operation of this Chapter.
3. Each Party shall designate a contact point to facilitate communication between the Parties on all matters relating to the implementation of this Chapter and shall update the other Party on any changes to the details of the contact points.
Article 15.4. Relations with other Chapters
The provisions of this Chapter apply to all provisions on economic cooperation included in other Chapters of this Agreement, unless otherwise specified.
Article 15.5. Work Programme
1. The Committee on Economic Cooperation shall establish a Work Programme on Economic Cooperation Activities (Work Programme) based on proposals submitted by the Parties for areas of cooperation, which may include fields and forms of cooperation, contact points, financial and expert resources, and, if applicable, timeframes for the fulfilment of economic cooperation and capacity building. The Work Programme shall also take into consideration the needs identified by Committees established pursuant to Chapter 18 (Administration of the Agreement).
2. Each activity in the Work Programme shall:
(a) be guided by the objectives agreed in Article 15.1 (Objectives);
(b) be related to trade or investment and support the implementation of this Agreement;
(c) involve both Parties;
(d) address the mutual priorities of the Parties; and
(e) take into account existing cooperation activities between the Parties.
3. The Work Programme shall include periodic reporting to the Parties, and shall be subject to periodic review and modification from time to time by the Committee on Economic Cooperation.
Article 15.6. Cooperation on Competition Policy
The Parties encourage cooperation in the area of competition policy to prevent anti-competitive practices and their adverse effects on trade. The Parties may cooperate through consultation and exchange of information related to the implementation and development of competition policy, subject to their laws and regulations. The Parties may conduct such cooperation through their competent authorities.
Article 15.7. Resources
1. Resources for economic cooperation under this Chapter shall be provided in a manner agreed by the Parties and in accordance with each Party’s laws and regulations.
2. The Parties, on the basis of mutual benefit, and as deemed appropriate, may consider cooperation with, and contributions from, external parties to support the implementation of this Chapter.
Chapter 16. DISPUTE SETTLEMENT
Section A. OBJECTIVE AND SCOPE
Article 16.1. Objective
The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and settling disputes between the Parties concerning the interpretation and application of this Agreement with a view to reaching, where possible, a mutually agreed solution.
Article 16.2. Cooperation
The Parties shall endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
Article 16.3. Scope of Application
1. Unless otherwise provided for in this Agreement, this Chapter shall apply with respect to the settlement of any disputes between the Parties concerning the interpretation, implementation, or application of this Agreement (hereinafter referred to as "covered provisions"), wherever a Party considers that:
(a) a measure of the other Party is inconsistent with its obligations under this Agreement; or
(b) the other Party otherwise failed to carry out its obligations under this Agreement.
2. The Parties agree that neither Party shall have recourse to dispute settlement under this Chapter for any matter arising under the following Chapters of this Agreement:
(a) Chapter 5 (Sanitary and Phytosanitary Measures);
(b) Chapter 9 (Digital Trade);
(c) Chapter 10 (Investment);
(d) Chapter 11 (Government Procurement);
(e) Chapter 13 (Small and Medium Enterprises);
(f) Chapter 14 (Islamic Economy); and
(g) Chapter 15 (Economic Cooperation).
Article 16.4. Contact Points
1. Each Party shall designate a contact point to facilitate communications between the Parties with respect to any dispute initiated under this Chapter.
2. Any request, notification, written submission or other document made in accordance with this Chapter shall be delivered to the other Party through its designated contact point.
Section B. CONSULTATIONS AND MEDIATION
Article 16.5. Request for Information
Before a request for consultations, good offices or mediation is made pursuant to Article 16.6 (Consultations) or Article 16.7 (Good Offices, Conciliation, or Mediation) respectively, a Party may request in writing any relevant information with respect to a measure at issue. The Party to which that request is made shall make all efforts to provide the requested information in a written response to be submitted no later than 20 days after the date of receipt of the request.
Article 16.6. Consultations
1. The Parties shall endeavour to resolve any dispute referred to in Article 16.3 (Scope of Application) by entering into consultations in good faith with the aim of reaching a mutually agreed solution.
2. A Party shall seek consultations by means of a written request delivered to the other Party identifying the reasons for the request, including the measure at issue, a description of its factual basis, and the legal basis specifying the covered provisions that it considers applicable.
3. The Party to which the request for consultations is made shall reply to the request promptly, but no later than 10 days after the date of receipt of the request. Consultations shall be held within 30 days of the date of receipt of the request. The consultations shall be deemed to be concluded within 30 days of the date of receipt of the request, unless the Parties agree otherwise.
4. Consultations on matters of urgency, including those regarding perishable or seasonal goods, shall be held within 15 days of the date of receipt of the request. The consultations shall be deemed to be concluded within those 15 days unless the Parties agree otherwise.
5. During consultations, each Party shall provide sufficient information so as to allow a complete examination of the measure at issue including how that measure is affecting the operation and application of this Agreement.
6. Consultations, including all information disclosed and positions taken by the parties during consultations, shall be confidential, and without prejudice to the rights of either Party in any further proceedings.
7. Consultations may be held in person or by any other means of communication agreed by the parties. Unless the parties agree otherwise, consultations, if held in person, shall take place in the territory of the Party to which the request is made.
8. If the Party to which the request is made does not respond to the request for consultations within 10 days of the date of the receipt of the request, or if consultations are not held within the timeframes laid down in paragraph 3 or in paragraph 4 respectively, or if the Parties agree not to have consultations, or if consultations have been concluded and no mutually agreed solution has been reached, the Party that sought consultations may have recourse to Article 16.8 (Establishment of a Panel).
Article 16.7. Good Offices, Conciliation, or Mediation
1. The Parties may at any time agree to enter into procedures for good offices, conciliation, or mediation. They may begin at any time and be terminated by either Party at any time.
2. If the Parties agree, procedures for good offices, conciliation, or mediation may continue while the panel procedures set out in Section C (Panel Procedures) proceed.
3. Proceedings involving good offices, conciliation, or mediation and the particular positions taken by the Parties in these proceedings, shall be confidential and without prejudice to the rights of either Party in any further proceedings under this Chapter or any other proceedings before a forum selected by the Parties.