Title
AGREEMENT ON TRADE IN SERVICES AND INVESTMENT BETWEEN THE REPUBLIC OF ARMENIA AND THE REPUBLIC OF SINGAPORE
Preamble
PREAMBLE
The Republic of Armenia (hereinafter referred to as "Armenia") and the Republic of Singapore (hereinafter referred to as "Singapore") (hereinafter referred to collectively as "the Parties"),
RECOGNISING the importance of enhancing the longstanding and strong friendship between the Parties;
ACKNOWLEDGING the mutual desire of the Parties for a comprehensive economic partnership covering trade in goods, trade in services, investments, and trade-related areas;
REAFFIRMING the Framework Agreement on Comprehensive Economic Cooperation between the Eurasian Economic Union and its Member States, of the one part, and the Republic of Singapore, of the other part, signed at Yerevan, on the first day of October 2019;
DESIRING to eliminate barriers to trade in services and investment between the Parties, lower business costs, enhance economic efficiency and create favourable conditions for greater economic cooperation and mutual benefit;
RECOGNISING that the promotion and mutual protection of investments will be conducive to stimulating business initiative and increasing prosperity in the Parties; and
DESIRING to create favourable conditions for greater bilateral economic cooperation and in particular for investments by investors of one State in the territory of the other State based on the principles of equality and mutual benefit;
HAVE AGREED as follows:
Body
Chapter 1. Initial Provisions and General Definitions
Article 1.1. Establishment of a Free Trade Area
The Parties hereby establish a free trade area consistent with Article V of GATS.
Article 1.2. Objectives
The objective of this Agreement is to liberalise and facilitate trade in services and investment between the Parties in accordance with this Agreement.
Article 1.3. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
"central level of government" means the national level of government;
"day" means a calendar day;
"enterprise" means an entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including a corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation; and includes a branch of an enterprise;
"enterprise of a Party" means an enterprise organised or constituted under the laws of a Party, or a branch located in the territory of a Party and carrying out business activities there;
"GATS" means the General Agreement on Trade in Services contained in Annex 1B to the WTO Agreement;
"IMF" means the International Monetary Fund;
"measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form, and includes measures taken by:
(a) central or local governments and authorities; and
(b) non-governmental bodies in the exercise of powers delegated by central or local governments or authorities;
"national" means:
(a) with respect to Singapore, a citizen of Singapore within the meaning of its Constitution and its domestic laws; and
(b) with respect to Armenia, a citizen of Armenia within the meaning of its Constitution and its domestic laws;
"person" means a natural person or an enterprise;
"person of a Party" means a national or an enterprise of a Party;
"territory" means:
(a) with respect to Singapore, its land territory, internal waters and territorial sea, including the airspace above them, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise rights with regard to the sea, the sea- bed, the subsoil and the natural resources; and
(b) with respect to Armenia, its land territory, internal waters, subsoil and airspace above them, over which Armenia exercises sovereign rights and jurisdiction in accordance with its domestic laws and international law;
"WTO Agreement" means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994; and
"WTO" means the World Trade Organization.
Chapter 2. Cross-border Trade In Services
Article 2.1. Definitions
For purposes of this Chapter:
"cross-border trade in services" or "cross-border supply of services" means the supply of a service:
(a) from the territory of one Party into the territory of the other Party;
(b) in the territory of one Party by a person of that Party to a person of the other Party; or
(c) by a national of a Party in the territory of the other Party;
but does not include the supply of a service in the territory of a Party by an investor of the other Party or a covered investment as defined in Article 3.1 (Definitions); and
"service supplier" means a person of a Party that seeks to supply or supplies a service. (1)
Article 2.2. Scope and Coverage
1. This Chapter shall apply to measures by a Party affecting cross-border trade in services by service suppliers of the other Party. Such measures include measures affecting:
(a) the production, distribution, marketing, sale and delivery of a Service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of distribution, transport, or telecommunications networks and services in connection with the supply of a service; and
(d) the provision of a bond or other form of financial security as a condition for the supply of a service.
2. Articles 2.5 (Market Access) and 2.8 (Domestic Regulation) also apply to measures by a Party affecting the supply of a service in its territory by an investor of the other Party or by a covered investment as defined in Article 3.1 (Definitions). (2)
3. This Chapter shall not apply to:
(a) government procurement;
(b) air services, including domestic and international air transportation services, whether scheduled or non-scheduled, or related services in support of air services;
(c) subsidies or grants provided by a Party, including government- supported loans, guarantees and insurance; or any conditions attached to the receipt or continued receipt of such subsidies or grants, whether or not such subsidies or grants are offered exclusively to domestic services, service consumers or service suppliers; or
(d) services supplied in the exercise of governmental authority within the territory of each Party.
4. For the purposes of this Chapter, a 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.
5. This Chapter does not impose any obligation on a Party with respect to a national of the other Party seeking access to its employment market, or employed on a permanent basis in its territory, and does not confer any right on that national with respect to that access or employment, nor shall it apply to measures regarding citizenship or residence on a permanent basis.
6. Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons of the other Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, 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 (3).
7. This Chapter shall not apply to financial services (4) and telecommunications (5). The Parties reaffirm their commitments under GATS with respect to financial services and telecommunications.
Article 2.3. Most-favoured-nation Treatment
Each Party shall accord to service suppliers of the other Party treatment no less favourable than that it accords, in like circumstances, to service suppliers of a non-Party.
Article 2.4. National Treatment
Each Party shall accord to service suppliers of the other Party treatment no less favourable than that it accords, in like circumstances, to its own service suppliers.
Article 2.5. Market Access
A Party shall not adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:
(a) limit 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) limit the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
(c) limit the total number of service operations or 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; (6)
(d) limit the total number of natural persons 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; or
(e) restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.
Article 2.6. Local Presence
A Party shall not 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 territory as a condition for the cross-border supply of a service.
Article 2.7. Non-conforming Measures
1. Articles 2.3 (Most-Favoured-Nation Treatment), 2.4 (National Treatment), 2.5 (Market Access), and 2.6 (Local Presence) shall not apply to:
(a) any existing non-conforming measure that is maintained by a Party as set out by that Party in its Schedule to Annex I;
(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 2.3 (Most- Favoured-Nation Treatment), 2.4 (National Treatment), 2.5 (Market Access), and 2.6 (Local Presence).
2. Articles 2.3 (Most-Favoured-Nation Treatment), 2.4 (National Treatment), 2.5 (Market Access), and 2.6 (Local Presence) shall 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 II.
Article 2.8. Domestic Regulation
1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Where a Party requires authorisation for the supply of a service, the Party's competent authorities shall, within a reasonable period of time after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of the Party shall provide, without undue delay, information concerning the status of the application. This obligation shall not apply to authorisation requirements that are within the scope of paragraph 2 of Article 2.7 (Non- Conforming Measures).
3. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, each Party shall endeavour to ensure, as appropriate for individual sectors, that such measures are:
(a) based on objective and transparent criteria, such as competence and the ability to supply the service;
(b) not more burdensome than necessary to ensure the quality of the service; and
(c) in the case of licensing procedures, not in themselves a restriction on the supply of the service.
4. If the results of the negotiations related to paragraph 4 of Article VI of GATS (or the results of any similar negotiations undertaken in other multilateral fora in which both Parties participate) enter into effect, this Article shall be amended, as appropriate, after consultations between the Parties, to bring those results into effect under this Agreement.
Article 2.9. Recognition
1. For the purposes of the fulfilment, in whole or in part, of a Party's standards or criteria for the authorisation, licensing or certification of service suppliers, and subject to the requirements of paragraph 4, it may recognise the education or experience obtained, requirements met, or licences or certifications granted in a particular country, including the other Party or non-Parties. Such recognition, which may be achieved through harmonisation or otherwise, may be based upon an agreement or arrangement with the Party or non-Party concerned or may be accorded autonomously.
2. Where a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted in the territory of a non-Party, nothing in Article 2.3 (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 territory of the other Party.
3. A Party that is a party to an agreement or arrangement of the type referred to in paragraph 1, whether existing or future, shall afford adequate opportunity to the other Party, if the other Party is interested, to negotiate its accession to such an agreement or arrangement or to negotiate comparable ones with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity to the other Party to demonstrate that education, experience, licences, or certifications obtained or requirements met in that other Party's territory 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 services suppliers, or a disguised restriction on trade in services.
Article 2.10. Monopolies and Exclusive Service Suppliers
1. Each Party shall ensure that any monopoly supplier of a service in its territory 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 2.3 (Most-Favoured-Nation Treatment), 2.4 (National Treatment), 2.5 (Market Access), and 2.6 (Local Presence).
2. Where a Party's monopoly supplier competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights and which is subject to that Party's obligations under Articles 2.3 (Most-Favoured-Nation Treatment), 2.4 (National Treatment), 2.5 (Market Access) and 2.6 (Local Presence), the Party shall ensure that such a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with such commitments.
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, it 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 territory.
Article 2.11. Safeguard Measures
Neither Party shall take safeguard action against services and service suppliers of the other Party from the date of entry into force of this Agreement. Neither Party shall initiate or continue any safeguard investigations in respect of services and service suppliers of the other Party.
Article 2.12. Transfers 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 territory.
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 on the date of transfer.
3. Notwithstanding paragraphs 1 and 2, 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.
4. Nothing in this Chapter shall affect the rights and obligations of the members of the IMF under its Articles of Agreement, including the use of exchange actions which are in conformity with the said Articles of Agreement, provided that a Party shall not impose restrictions on any capital transactions inconsistently with its obligations under this Chapter regarding such transactions, except under Article 6.7 (Restrictions to Safeguard the Balance of Payments) or at the request of the IMF.
Article 2.13. Denial of Benefits
A Party may deny the benefits of this Chapter to a service supplier of the other Party if the service is being supplied by an enterprise that has no substantial business activities in the territory of the other Party and it 1s owned or controlled by persons of a non-Party or the denying Party.
Article 2.14. General Exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination against the other Party, or a disguised restriction on trade in services, nothing in this Chapter shall be construed to prevent the adoption or enforcement by a Party of measures:
(a) necessary to protect public morals or to maintain public order; (7)
(b) necessary to protect human, animal or plant life or health;
(c) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Chapter including those relating to:
(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;
(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
(iii) safety;
(d) inconsistent with Article 2.4 (National Treatment), provided that the difference in treatment is aimed at ensuring the equitable or effective (8) imposition or collection of direct taxes in respect of services or service suppliers of the other Party.
Chapter 3. Investment
Article 3.1. Definitions
For the purposes of this Chapter:
"claimant" means an investor of a Party that is a party to an investment dispute with the other Party;
"covered investment" means, with respect to a Party, an investment in its territory of an investor of the other Party in existence as of the date of entry into force of this Agreement or established, acquired, or expanded thereafter;
"disputing parties" means the claimant and the respondent; "disputing party" means either the claimant or the respondent;
"freely usable currency" means "freely usable currency" as determined by the IMF under its Articles of Agreement and any amendments thereto;
"ICSID Additional Facility Rules" means the Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Centre for Settlement of Investment Disputes;
"ICSID Arbitration Rules" means the Rules of Procedure for Arbitration Proceedings (Arbitration Rules) as amended and in effect on 10 April 2006;
"ICSID Convention" means the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, done at Washington, 18 March 1965;
"investment" means every kind of asset, owned or controlled, directly or indirectly, by an investor, that has the characteristics of an investment (9). Forms that an investment may take include: (10)
(a) an enterprise;
(b) shares, stock, and other forms of equity participation in an enterprise, including rights derived therefrom;
(c) bonds, debentures, loans and other debt instruments (11), including rights derived therefrom;
(d) futures, options, and other derivatives;