Australia - Indonesia Comprehensive Economic Partnership Agreement (2019)
Categories

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure according preferences to any Indigenous person or organisation or providing for the favourable treatment of any Indigenous person or organisation in relation to acquisition, establishment or operation of any commercial or industrial undertaking in the service sector. Australia reserves the right to adopt or maintain any measure with respect to investment that accords preferences to any Indigenous person or organisation or providing for the favourable treatment of any Indigenous person or organisation. For the purpose of this entry, an Indigenous person means a person of the Aboriginal and Torres Strait Islander peoples.

Existing Measures: Legislation and ministerial statements at all levels of government including Australia’s Foreign Investment Framework, and the Native Title Act 1993 (Cth).

6. Sector: All Sectors

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to: (a) the devolution to the private sector of services provided in the exercise of governmental authority at the time that the Agreement comes into force; and (b) the privatisation of government owned entities or assets.

Existing Measures:

7. Sector: All Sectors

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure (8) with respect to the provision of law enforcement and correctional services, and the following services (9) to the extent that they are social services established or maintained for a public purpose: 

- income security or insurance;

-  social security or insurance;

- social welfare;

- public education;

 - public training; 

- health;(10)

- child care;

- public utilities;

- public transport; and

- public housing.

Existing Measures:

(8) For greater certainty, measures adopted or maintained with respect to the provision of services covered by this entry include measures for the protection of personal information relating to health and children.
(9) For the avoidance of doubt, this includes any measure with respect to: the collection of blood and its components, the distribution of blood and blood-related products, including plasma derived products, plasma fractionation services, and the procurement of blood and blood related products and services.
(10) For greater certainty, the subsidies programmes under Australia’s Pharmaceutical Benefits Scheme and Medicare Benefits Scheme, or successor programmes, are not subject to Chapter 9 (Trade in Services), consistent with Article 9.2 (Scope), or Chapter 14 (Investment), consistent with Article 14.2 (Scope).

8. Sector: Communication Services; Recreational, Cultural and Sporting Services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to: (a) the creative arts (11), cultural heritage (12) and other cultural industries, including audio-visual services, entertainment services and libraries, archives, museums and other cultural services; and (b) broadcasting and audio-visual services, including measures with respect to planning, licensing and spectrum management, and including: (i) services offered in Australia; and (ii) international services originating from Australia.

Existing Measures: Broadcasting Services Act 1992 (Cth) Radiocommunications Act 1992 (Cth) Broadcasting Services (Australian Content) Standard 2016 Children’s Television Standards 2009 Television Program Standard 23 – Australian Content in Advertising Commercial Radio Codes of Practice and Guidelines Community Broadcasting Codes of Practice International Coproduction Program Australia Council Act 2013 (Cth) Screen Australia Act 2008 (Cth) Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) 

(11) ‘Creative arts’ include: the performing arts – including theatre, dance and music – visual arts and craft, literature, film, television, video, radio, creative on-line content, indigenous traditional practice and contemporary cultural expression, and digital interactive media and hybrid arts work which uses new technologies to transcend discrete artform divisions.
(12) ‘Cultural heritage’ includes: ethnological, archaeological, historical, literary, artistic, scientific or technological moveable or built heritage, including the collections which are documented, preserved and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions.

9. Sector: Distribution Services

Obligations Concerned: Market Access (Article 9.5)

Description: Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to wholesale and retail trade services of tobacco products, alcoholic beverages, or firearms.

Existing Measures:

10. Sector: Education Services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to primary education.

Existing Measures:

11. Sector: Gambling and Betting

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to gambling and betting.

Existing Measures: Legislation and Ministerial Statements, including the Interactive Gambling Act 2001 (Cth).

12. Sector: Maritime Transport

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to maritime cabotage services and offshore transport services. (13) Australia reserves the right to adopt or maintain any measure with respect to the registration of vessels in Australia.

Existing Measures: Customs Act 1901 (Cth) Fair Work Act 2009 (Cth) Seafarers’ Rehabilitation and Compensation Act 1992 (Cth) Occupational Health and Safety (Maritime Industry) Act 1993 (Cth) Shipping Registration Act 1981 (Cth) Shipping Registration Regulations 1981 (Cth) Income Tax Assessment Act 1936 (Cth) Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth) Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Act 2012 (Cth) Shipping Reform (Tax Incentives) Act 2012 (Cth).

(13) For the purposes of this entry, “cabotage” is defined as the transportation of passengers or goods between a port located in Australia and another port located in Australia and traffic originating and terminating in the same port located in Australia. “Offshore transport” refers to shipping services involving the transportation of passengers or goods between a port located in Australia and any location associated with or incidental to the exploration or exploitation of natural resources of the continental shelf of Australia, the seabed of the Australian coastal sea and the subsoil of that seabed.

13. Sector: Transport Services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to investment in federal leased airports.

Existing Measures: Airports Act 1996 (Cth) Airports (Ownership-Interests in Shares) Regulations 1996 (Cth) Airports Regulations 1997 (Cth)

14. Sector: All Sectors

Obligations Concerned: Market Access (Article 9.5)

Description: Trade in Services

Australia reserves the right to adopt or maintain any measure at the regional level of government, except: (a) for the sectors and sub-sectors, and subject to the limitations and conditions, listed in Appendix A to this Schedule; and (b) as provided in paragraph 2 of this entry. With respect to financial services, Australia reserves the right to adopt or maintain any measure at the regional level of government that is not inconsistent with Australia’s Revised Services Offer of 31 May 2005 in the World Trade Organisation Doha Development Agenda negotiations (WTO Document TN/S/O/AUS/Rev.1).

Existing Measures:

15. Sector: All Sectors

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.4)

Description: Trade in Services

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service or service supplier under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement (14). Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service or service supplier under any bilateral or multilateral international agreement signed after the date of entry into force of this Agreement except with respect to the sectors and sub-sectors listed in Appendix B to this Annex. For sectors not listed in Appendix B, if, after the entry into force of this Agreement, Australia subsequently enters into any agreement with a non-Party in which it provides treatment to services or service suppliers of that non-Party more favourable than it accords to like services or service suppliers of Indonesia, Indonesia may request consultations to discuss the possibility of extending, such treatment. On request from Indonesia, Australia will give consideration to negotiate for the incorporation of treatment no less favourable than that provided under the agreement in question. Such incorporation shall take into account the overall balance of benefits. Notwithstanding the above, Australia reserves the right to adopt or maintain any measure that accords more favourable treatment: a) to any service or service supplier taken as part of a process of economic integration or trade liberalisation between the Parties to the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) done at Canberra on March 28, 1983 (15); b) to any service or service supplier of a Pacific Islands Forum member state under any international agreement in force or signed after the day of entry into force of this Agreement; or c) to any service or service supplier under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving: (i) aviation; (ii) fisheries; or (iii) maritime matters, including salvage.

Existing Measures:

(14) For greater certainty, this right extends to any differential treatment accorded pursuant to a subsequent review or amendment of the relevant bilateral or multilateral international agreement.
(15) For the avoidance of doubt, this includes measures adopted or maintained under any existing or future protocol to that agreement.

16. Sector: All Sectors

Obligations Concerned: Most-Favoured-Nation Treatment (Article 14.5)

Description: Investment

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any investor or covered investment under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement (16). Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any investor or covered investment taken as part of a process of economic integration or trade liberalisation between the Parties to the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) done at Canberra on March 28, 1983 (17). Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any investor or covered investment of a Pacific Islands Forum member state under any international agreement in force or signed after the date of entry into force of this Agreement. Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any investor or covered investment under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving: (a) aviation; (b) fisheries; or (c) maritime matters, including salvage.

Existing Measures:

(16) For greater certainty, this right extends to any differential treatment accorded pursuant to a subsequent review or amendment of the relevant bilateral or multilateral international agreement.
(17) For the avoidance of doubt, this includes measures adopted or maintained under any existing or future protocol to that agreement.

17. Sector: Financial Services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure (18) with respect to the guarantee by government of government-owned entities whose operations include the provision of financial services, including guarantees related to the privatisation of such entities.

Existing Measures:

(18) This includes measures that would be excluded from the application of the term “service supplied in the exercise of governmental authority” as defined in Article 9.1 (Definitions) as modified by Article 10.1.3 (Definitions), except for the application of Australia’s policy on competitive neutrality which in general allows competition and avoids providing net competitive advantage to an entity by virtue of its public sector ownership.

18. Sector: Financial Services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6)

Description: Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure regarding solicitation in its territory.

Existing Measures:

19. Sector: Financial Services

Sub-sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Except as provided in paragraphs 2 and 3 of this entry, Australia reserves the right to adopt or maintain any measure with respect to trade in services as defined in subparagraphs (a), (b) and (d) of the definition of “trade in services or supply of a service” in Article 9.1 (Definitions) for insurance and insurance related services.

Australia shall permit a financial services supplier of Indonesia to supply, via cross-border supply as defined in subparagraph (a) of the definition of “trade in services or supply of a service” in Article 9.1 (Definitions) and under terms and conditions that accord national treatment, whether as a principal, through an intermediary or as an intermediary, the following services:

(a) insurance of risks relating to:

(i) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability arising there from; and

(ii) goods in international transit;

(b) reinsurance and retrocession;

(c) services auxiliary to insurance, such as consultancy, risk assessment, actuarial and claim settlement services; and

(d) insurance intermediation, such as brokerage and agency as referred to in subparagraph (c) of the definition of “financial service” in Article 10.1 (Definitions) of insurance of risks related to services listed in subparagraphs (a) and (b) of this paragraph.

Australia shall permit its residents to purchase in the territory of Indonesia the financial services indicated in subparagraphs 2(a) to (d) of this entry.

Existing Measures: 

20. Sector: Financial Services

Sub-sector: Banking and other Financial Services (excluding Insurance and Insurance-related Services)

Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.10)

Description: Trade in Services and Investment

Except as provided in paragraphs 2, 3 and 4 of this entry, Australia reserves the right to adopt or maintain any measure with respect to trade in services as defined in subparagraphs (a), (b) and (d) of the definition of “trade in services or supply of a service” in Article 9.1 (Definitions) for banking and other financial services.

Australia shall permit a financial service supplier of Indonesia to supply, via cross-border supply as defined in subparagraph (a) of the definition of “trade in services or supply of a service” in Article 9.1 (Definitions) and under terms and conditions that accord national treatment, the following services: provision and transfer of financial information and financial data processing as referred to in subparagraph (o) of the definition of “financial service” in Article 10.1 (Definitions) and advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services as referred to in subparagraph (p) of the definition of “financial service” in Article 10.1 (Definitions).

Australia shall permit its residents to purchase in the territory of Indonesia the financial services indicated in subparagraphs (e) to (p) of the definition of “financial service” in Article 10.1 (Definitions). Australia shall allow a financial institution organised in the territory of Indonesia to provide the following services to a collective investment scheme located in Australia (19):

(a) investment advice; and

(b) portfolio management services, excluding:

(i) trustee services; and

(ii) custodial services and execution services that are not related to managing a collective investment scheme.

Note: For the purposes of this entry, the term “collective investment scheme” means a managed investment scheme as defined under section 9 of the Corporations Act 2001 (Cth), other than a managed investment scheme operated in contravention of subsection 601ED (5) of the Corporations Act 2001 (Cth), or an entity that:

(i) carries on a business of investment in securities, interests in land, or other investments; and

(ii) in the course of carrying on that business, invests funds subscribed, whether directly or indirectly, after an offer or invitation to the public (within the meaning of section 82 of the Corporations Act 2001 (Cth) made on terms that the funds subscribed would be invested.

Existing Measures:

(19) For greater certainty, Australia may require a collective investment scheme or a person of Australia involved in the operation of the scheme located in Australia to retain ultimate responsibility for the management of the collective investment scheme.

21. Sector: Financial Services

Obligations Concerned: Market Access (Article 9.5)

Description: Trade in Services

Australia reserves the right to adopt or maintain any measure imposing non-discriminatory limitations on juridical form for enterprises supplying financial services and constituted under the laws of Australia. For example, partnerships and sole proprietorships are generally not acceptable juridical forms for authorised depository institutions in Australia (20).

Existing Measures:

(20) This entry is not itself intended to affect, or otherwise limit, a choice by a financial service supplier of the other Party between branches or subsidiaries.

Appendix A. AUSTRALIA’S MARKET ACCESS COMMITMENTS SCHEDULE – REGIONAL (STATE AND TERRITORY) LEVEL

For the purposes of this Appendix, the ‘Limitations on Market Access’ column refers to the supply of a service:

1) from the territory of a Party into the territory of the other Party (Mode 1);

2) in the territory of a Party to a person of the other Party (Mode 2); and

3) by a service supplier of a Party, through commercial presence in the territory of the other Party (Mode 3).

Sector or Sub-sectorLimitations on Market Access
  1. BUSINESS SERVICES
A. Professional services 
(a) Legal services (21)
(i) Legal advisory and representational services in domestic law (host-country law).1) None 2) None 3) None 
(ii) Legal advisory services in foreign law and international law and (in relation to foreign and international law only) legal arbitration and conciliation/mediation services.   1) None 2) None 3) Natural persons practising foreign law may only join a local law firm as a consultant and may not enter into partnership with or employ local lawyers in South Australia.  
(b) Accounting, auditing and book-keeping services (CPC 862) (c) Taxation services (CPC 863) (d) Architectural services (CPC 8671) (e) Engineering services (CPC 8672) (f) Integrated engineering services (CPC 8673) (g) Urban planning and landscape architectural services (CPC 8674) (h) Dental services (CPC 93123) (i) Veterinary services (CPC 932)1) None 2) None 3) None
 (21) For the purposes of this commitment: “legal advisory services” – includes provision of advice to and consultation with clients in matters, including transactions, relationships and disputes, involving the application or interpretation of law; participation with or on behalf of clients in negotiations and other dealings with third parties in such matters; and preparation of documents governed in whole or in part by law, and the verification of documents of any kind for purposes of and in accordance with the requirements of law. Does not include advice, consultation and documentation services performed by service suppliers entrusted with public functions, such as notary services, or services provided by patent or trade marks attorneys. “legal representational services” – includes preparation of documents intended to be submitted to courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and interpretation of law; and appearance before courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and interpretation of the specified body of law. (Note 1: The inclusion of representational services before administrative agencies and other duly constituted official tribunals within the context of legal services does not necessarily mean that a licensed lawyer must supply such services in all cases. The precise scope of services subject to licensing requirements is subject to the discretion of the relevant regulatory authority.) Does not include documentation services performed by service suppliers entrusted with public functions, such as notary services, or services provided by patent or trade marks attorneys. “legal arbitration, conciliation and mediation services” – preparation of documents to be submitted to, preparation for and appearance before, an arbitrator, conciliator or mediator in any dispute involving the application and interpretation of law. Does not include arbitration, conciliation and mediation services in disputes for which the law has no bearing which fall under services incidental to management consulting. As a sub-category, international legal arbitration, conciliation or mediation services refer to the same services when the dispute involves parties from two or more countries. “domestic law (host country law)” – the law of Australia. “foreign law” – the law of the territories of WTO Members and other countries other than the law of Australia. “international law” – includes law established by international treaties and conventions, as well as customary law. For the purposes of these definitions: “arbitration” is taken to mean a process in which the parties to a dispute present arguments and evidence to a dispute resolution practitioner (the arbitrator) who makes a determination. “mediation” is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the mediator), identify the disputed issues, develop options, consider alternatives and endeavour to reach an agreement. The mediator has no advisory or determinative role in regard to the content of the dispute or the outcome of its resolution, but may advise on or determine the process of mediation whereby resolution is attempted. “conciliation” is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the conciliator), identify the issues in dispute, develop options, consider alternatives and endeavour to reach an agreement. The conciliator may have an advisory role on the content of the dispute or the outcome of its resolution, but not a determinative role. The conciliator may advise on or determine the process of conciliation whereby resolution is attempted, and may make suggestions for terms of settlement, give expert advice on likely settlement terms, and may actively encourage the participants to reach an agreement.
Sector or Sub-sectorLimitations on Market Access
 B. Computer and related services (CPC 84) (22).  
(a) Consultancy services related to the installation of computer hardware (CPC 841) (b) Software implementation services (CPC 842) (c) Data processing services (CPC 843) (d) Database services (CPC 844) (e) Other: - Maintenance and repair services of office machinery and equipment including computers (CPC 845) - Other computer services (CPC 849)1) None 2) None 3) None
(22) For greater certainty, Entry 8 of this Annex applies to measures relating to content for Computer and related services (CPC 84).
Sector or Sub-sector Limitations on Market Access 
C. Research and development services
(a) R&D services on natural sciences (CPC 851) (b) R&D services on social sciences and humanities (CPC 852) (c) Interdisciplinary R&D services (CPC 853)1) None 2) None 3) None
D. Real estate services 
(a) Involving own or leased property (CPC 821) (b) On a fee or contract basis (CPC 822)1) None, except commercial presence required 2) None, except commercial presence required 3) None
E. Rental/leasing services without operators  
(a) Relating to ships (CPC 83103**) (23) (b) Relating to aircraft (CPC 83104) (c) Relating to other transport equipment (CPC 83101-2, 83105) (d) Relating to other machinery and equipment (CPC 83106-9)1) None 2) None 3) None
F. Other business services
(a) Advertising services (CPC 87110, 87120**, 87190) (24) (b) Market research and public opinion polling services (CPC 864) (c) Management consulting services (CPC 865) (d) Services related to management consulting (CPC 86601, 86609) (25) (e) Technical testing and analysis services (CPC 8676) (f) Services incidental to agriculture, hunting and forestry (CPC 8811**, 8812**, 8814**) (26) (g) Services incidental to fishing (CPC 882**) (27) (h) Services incidental to mining and site preparation work for mining (CPC 883, 5115) (i) Services incidental to manufacturing (CPC 884, 885, except 88442) (j) Services incidental to energy distribution (CPC 887**) (28)1) None 2) None 3) None
(k) Placement and supply services of personnel (CPC 872) 1) Unbound 2) None 3) None
(l) Investigation and security (CPC 873) (m) Related scientific and technical consulting services (CPC 8675) (n) Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) (CPC 633, 8861-8866)1) None 2) None 3) None
(o) Building-cleaning services (CPC 874). 1) Unbound* 2) None 3) None
(p) Photographic services (CPC 875) (s) Convention services (CPC 87909**) (29) (t) Other: - Telephone answering services(CPC 87903) - Duplicating services (CPC 87904) - Translation and interpretation services (CPC 87905) - Mailing list compilation and mailing services (CPC 87906) - Interior design (CPC 87907) (30)1) None 2) None 3) None
(23) For greater certainty, this excludes maritime cabotage services and offshore transport services in accordance with Entry 12 of this Annex.
(24) Covers services by advertising agencies in creating and placing advertising in periodicals, newspapers, radio and television for clients; outdoor advertising; media representation i.e. sale of time and space for various media; distribution and delivery of advertising material or samples. For greater certainty, this does not include production or broadcast/screening of advertisements for radio, television or cinema in accordance with Entry 8 of this Annex.

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