1. Each Party shall set out in a schedule the specific commitments it undertakes under Articles 3.4 (Market Access), 3.5 (National Treatment) and 3.6 (Additional Comments). With respect to sectors where such commitments are undertaken, each schedule shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments referred to in Article 3.6 (Additional Commitments); and
(d) where appropriate, the time-frame for implementation of such commitments and the date of entry into force of such commitments.
2. Measures inconsistent with Articles 3.4 (Market Access) and 3.5 (National Treatment) shall be inscribed in the column relating to Article 3.4 (Market Access). The inscription will be considered to provide a condition or qualification to Article 3.5 (National Treatment).
3. The Parties' Schedules of Specific Commitments are set out in Annex XII (Schedules of Specific Commitments).
Article 3.19. Modification of Schedules
1. Upon written request of a Party, the Parties shall hold consultations to consider any modification or withdrawal of a specific commitment in the requesting Party's Schedule of Specific Commitments. The consultations shall be held within three months from the date of the request.
2. In the consultations, the Parties shall aim to ensure that a general level of mutually advantageous commitments no less favourable to trade than that provided for in the Schedule of Specific Commitments prior to such consultations is maintained. Modifications of Schedules of Specific Commitments are subject to the procedures set out in Articles 10.1 (Joint Committee) and 12.2 (Amendments).
Article 3.20. Review
With the objective of further liberalising trade in services between them the Parties shall review at least every three years, or more frequently if so agreed, their Schedules of Specific Commitments and their Lists of MFN-Exemptions, taking into account in particular any autonomous liberalisation and on-going work under the auspices of the WTO. The first such review shall take place no later than five years from the date of entry into force of this Agreement.
Article 3.21. Annexes
The following Annexes form an integral part of this Chapter:
- Annex VII (Lists of MFN-Exemptions); - Annex IX (Movement of Natural Persons Supplying Services);
- Annex X (Recognition of Qualifications of Service Suppliers);
- Annex XI (Recognition of Certification of Competency and Training of Seafarers for Service on Board Vessels Registered in Switzerland);
- Annex XII (Schedules of Specific Commitments); - Annex XIII (Telecommunications Services); - Annex XIV (Financial Services); and
- Annex XV (Tourism and Travel Services).
Chapter 4. Investment
Article 4.1. Scope and Coverage
1. This Chapter applies to commercial presence in all sectors, with the exception of services sectors as set out in Article 3.1 (Scope and Coverage). (12)
2. This Chapter does not include investment protection and shall be without prejudice to the interpretation or application of other international agreements relating to investment or taxation to which one or several EFTA States and Indonesia are parties.
3. Nothing in this Chapter shall be construed to impose any obligation with respect to government procurement.
Article 4.2. Definitions
For the purposes of this Chapter,
(a) "juridical person" means any legal entity duly constituted or otherwise organised under applicable laws and regulations, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, partnership, joint venture, sole proprietorship or association;
(b) "juridical person of a Party" means a juridical person constituted or otherwise organised under applicable laws and regulations of a Party and engaged in substantive business operations in that Party;
(c) "natural person" means a person having the nationality of a Party in accordance with applicable laws and regulations;
(d) "commercial presence" means any type of business establishment, including through:
(i) the constitution, acquisition or maintenance of a juridical person; or
(ii) the creation or maintenance of a branch or a representative office within the territory of another Party for the purpose of performing an economic activity.
Article 4.3. Investment Promotion
1. The Parties recognise the importance of cooperating to promote investment and technology flows as a means to achieve economic growth and development through effective ways based on common interest and mutual benefits.
2. Cooperation as referred to in paragraph 1 may include:
(a) identifying investment opportunities and activities to promote investment abroad, in particular partnerships between small and medium sized enterprises;
(b) exchange of information on investment regulations; and
(c) furthering of an investment climate conducive to increase investment flows.
Article 4.4. National Treatment
In the sectors inscribed in Annex XVI (Schedules of Specific Commitments) and subject to any conditions and qualifications set out therein, each Party shall accord to juridical and natural persons of another Party, and to the commercial presence of such persons, treatment no less favourable than that it accords, in like situations, to its own juridical and natural persons, and to the commercial presence of such persons in its territory.
Article 4.5. Schedule of Specific Commitments
The sectors liberalised by each Party pursuant to this Chapter and the conditions and qualifications referred to in Article 4.4 (National Treatment) are set out in the Schedules of Specific Commitments included in Annex XVI (Schedules of Specific Commitments).
Article 4.6. Modification of Schedules
1. Upon written request of a Party, the Parties shall, hold consultations to consider any modification or withdrawal of a specific commitment in the requesting Party's Schedule of Specific Commitments. The consultations shall be held within three months from the date of the request.
2. In the consultations, the Parties shall aim to ensure that a general level of mutually advantageous commitments no less favourable than that provided for in the Schedule of Specific Commitments prior to such consultations is maintained. Modifications of Schedules of Specific Commitments are subject to the procedures set out in Articles 10.1 (Joint Committee) and 12.2 (Amendments).
Article 4.7. Key Personnel
1. Each Party shall, subject to its domestic laws and regulations, grant natural persons of another Party, and key personnel who are employed by natural or juridical persons of another Party, entry and temporary stay in its territory in order to engage in activities connected with commercial presence, including the provision of advice or key technical services.
2. Each Party shall, subject to its domestic laws and regulations, permit natural or juridical persons of another Party and their commercial presence, to employ, in connection with commercial presence, any key personnel of the natural or juridical person's choice regardless of nationality and citizenship provided that such key personnel has been permitted to enter, stay and work in its territory and that the employment concerned conforms to the terms, conditions and time limits of the permission granted to such key personnel.
3. The Parties should, subject to their domestic laws and regulations, grant entry and temporary stay and provide any necessary documentation to the spouse and minor children of key personnel.
Article 4.8. Right to Regulate
1. Subject to the provisions of this Chapter, a Party may, on a non-discriminatory basis, adopt, maintain or enforce any measure that is in the public interest, such as measures to meet health, safety or environmental concerns or reasonable measures for prudential purposes.
2. A Party should not waive or otherwise derogate from, or offer to waive or otherwise derogate from, measures to meet health, safety or environmental concerns as an encouragement for the establishment, acquisition, expansion or retention in its territory of a commercial presence of persons of another Party or a non-party.
Article 4.9. Payments and Transfers
1. Except under the circumstances referred to in Article 4.10 (Restrictions to Safeguard the Balance-of-Payments), no Party shall apply restrictions on current payments and capital movements relating to commercial presence in non-services sectors.
2. Nothing in this Chapter shall affect the rights and obligations of the Parties under the Articles of Agreement of the IMF, including the use of exchange actions which are in conformity with the Articles of Agreement of the IMF, provided that a Party shall not impose restrictions on capital transactions inconsistent with its obligations under this Chapter.
Article 4.10. Restrictions to Safeguard the Balance-of-Payments
For the purposes of this Chapter, paragraphs 1 to 3 of Article XII of the GATS, shall apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 4.11. General Exceptions
For the purposes of this Chapter, Article XIV of the GATS applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 4.12. Security Exceptions
For the purposes of this Chapter, paragraph 1 of Article XIVbis of the GATS applies and is hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 4.13. Review
This Chapter shall be subject to periodic review within the framework of the Joint Committee regarding the possibility of further developing the Partiesâ commitments.
Chapter 5. PROTECTION OF INTELLECTUAL PROPERTY
Article 5.1. Protection of Intellectual Property
1. The Parties shall grant and ensure adequate, effective and non-discriminatory protection of intellectual property rights, and provide for measures for the enforcement of such rights against infringement thereof, including counterfeiting and piracy, in accordance with the provisions of this Chapter, Annex XVII (Protection of Intellectual Property) and the Record of Understanding regarding Patents, and the international agreements referred to therein.
2. The Parties shall accord each other's nationals treatment no less favourable than that they accord to their own nationals. Exemptions from this obligation shall be in accordance with the substantive provisions of Articles 3 and 5 of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter referred to as the "TRIPS Agreement").
3. The Parties shall grant to each other's nationals treatment no less favourable than that accorded to nationals of a non-party. Exemptions from this obligation must be in accordance with the substantive provisions of the TRIPS Agreement.
4. If a Party concludes a trade agreement containing provisions on the protection of intellectual property rights with a non-party that has to be notified under Article XXIV of the GATT 1994, it shall also notify the other Parties and accord to them treatment no less favourable than that provided under such agreement. The Party concluding such an agreement shall, upon request of another Party, negotiate incorporation into this Agreement of provisions of the agreement granting a treatment no less favourable than that provided under that agreement.
5. Upon request of a Party, to the Joint Committee, the Parties agree to review the provisions of this Chapter and Annex XVII (Protection of Intellectual Property), with a view, inter alia, to further developing adequate levels of protection and implementation.
Chapter 6. GOVERNMENT PROCUREMENT
Article 6.1. Transparency
1. The Parties shall enhance their mutual understanding of their government procurement laws and regulations regarding their respective procurement markets.
2. Each Party shall publish its laws, or otherwise make publicly available, its domestic laws, regulations and administrative rulings of general application, as well as international agreements to which it is a party and may affect its procurement markets.
3. Each Party shall promptly respond to specific questions and provide information requested by another Party on matters referred to in paragraph 2.
Article 6.2. Further Negotiations
The Parties shall promptly notify each other if they enter into an agreement granting market access for government procurement with a non-party and shall, upon request from another Party, enter into negotiation on market access on government procurement.
Article 6.3. Contact Points
1. Exchange of information and cooperation shall be facilitated through the following contact points:
(a) for EFTA, the EFTA Secretariat; and (b) for Indonesia, the National Public Procurement Agency (NPPA).
2. Each Party shall notify the other Parties of any change to its contact point.
Article 6.4. Dispute Settlement
1. The Parties shall not have recourse to dispute settlement under Chapter 11 (Dispute Settlement) for any matter arising under this Chapter.
2. The Parties agree to negotiate application of Chapter 11 (Dispute Settlement) to any new articles in the context of Article 6.2 (Further Negotiations).
Chapter 7. COMPETITION
Article 7.1. Rules of Competition Concerning Enterprises
1. The Parties recognise that anti-competitive practices have the potential to undermine the benefits of economic partnership arising from this Agreement. The following practices of enterprises are incompatible with the proper functioning of this Agreement in so far as they may affect trade between the Parties:
(a) agreements between enterprises, decisions by associations of enterprises and concerted practices between enterprises which have as their object or effect the prevention, restriction or distortion of competition; and
(b) abuse by one or more enterprises of a dominant position in the territory of a Party as a whole or in a substantial part thereof.
2. The Parties shall apply their respective domestic competition laws and regulations with a view to proscribe such practices as outlined in paragraph 1 in conformity with the principles of transparency, non-discrimination and procedural fairness.
3. The rights and obligations under this Chapter shall only apply between the Parties.
Article 7.2. State Enterprises, Enterprises with Special and Exclusive Rights and Designated Monopolies
1. Nothing in this Chapter shall be construed to prevent a Party from establishing or maintaining state enterprises, enterprises with special or exclusive rights or designated monopolies.
2. The Parties shall ensure that state enterprises, enterprises with special or exclusive rights and designated monopolies do not adopt or maintain anti-competitive practices affecting trade between the Parties, insofar as the application of this provision does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them.
Article 7.3. Cooperation
1. The Parties recognise the importance of general cooperation in the area of competition policy. The Parties may cooperate to exchange information relating to the development of competition policy, subject to their domestic laws and regulations and available resources. The Parties may conduct such cooperation through their competent authorities.
2. The Parties involved shall cooperate in their dealings with anti-competitive practices as outlined in paragraph 1 of Article 7.1 (Rules of Competition concerning Enterprises). Cooperation may include exchange of pertinent information that is available to the Parties. No Party shall be required to disclose information that is confidential according to its domestic laws and regulations.
Article 7.4. Consultations
The Parties may consult matters related to anti competitive practices and their adverse effects to trade. The consultations shall be without prejudice to the autonomy of each Party to develop, maintain and enforce its domestic competition laws and regulations.
Article 7.5. Dispute Settlement
The Parties shall not have recourse to dispute settlement under Chapter 11 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 8. TRADE AND SUSTAINABLE DEVELOPMENT
Article 8.1. Context, Objectives, and Scope
1. The Parties recall the Declaration of the United Nations Conference on the Human Environment of 1972, the Rio Declaration on Environment and Development 1992, Agenda 21 on Environment and Development of 1992, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the Rio+20 Outcome Document "The Future We Want" of 2012, the UN Sustainable Development Summit Outcomes Document "Transforming Our World: the 2030 Agenda for Sustainable Development" of 2015, Monterrey Consensus of the International Conference on Financing for Development of 2002, Doha Declaration on Financing for Development of 2008 and Addis Ababa Action Agenda of 2015, ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up of 1998, the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, and the ILO Declaration on Social Justice for a Fair Globalization of 2008.
2. The Parties reaffirm their commitment to promote the development of international trade in such a way as to contribute to the objective of sustainable development and to ensure that this objective is integrated and reflected in the Parties' trade relations.
3. The Parties recognise that economic development, social development and environmental protection are interdependent and mutually reinforcing components of sustainable development. They underline the benefit of cooperation on trade-related labour and environmental issues as part of a global approach to trade and sustainable development. They further recognise that eradicating poverty is an indispensable requirement for sustainable development and that trade can be an engine for inclusive economic growth and poverty reduction.
4. The Parties agree that this Chapter embodies a cooperative approach based on common values and interests, taking into account the differences in their levels of development as appropriate.
5. The Parties agree that the provisions of this Chapter shall not be applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or as a disguised restriction on trade between the Parties.
6. Except as otherwise provided for in this Chapter, this Chapter applies to trade- related and investment-related aspects of sustainable development in all its dimensions.
7. The reference to labour in this Chapter includes the objective to promote inclusive and sustainable economic growth, employment and decent work for all as stipulated in Goal 8 of the 2030 Sustainable Development Agenda and issues relevant to Decent Work Agenda as agreed in the ILO.
Article 8.2. Right to Regulate and Levels of Protection
1. Recognising the right of each Party, subject to the provisions of this Agreement, to pursue its own means for achieving sustainable development, including establishing its own levels of labour and environmental protection and to adopt or modify accordingly its relevant domestic laws and policies, each Party shall seek to ensure that its domestic laws and policies provide for and encourage high levels of environmental and labour protection, consistent with standards, principles and agreements which they are committed or a Party to, and shall strive to further improve the level of protection provided for in those domestic laws and policies.
2. The Parties recognise the importance of scientific, technical, and other information, and relevant international standards, guidelines and recommendations, as references in preparing and implementing measures related to environment and labour conditions that affect trade and investment between them.
Article 8.3. Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards
1. The Parties shall effectively apply their environmental and labour laws, regulations or standards.
2. Subject to Article 8.2 (Right to Regulate and Levels of Protection), the Parties shall not:
(a) weaken or reduce levels of environmental or labour protection provided by their domestic laws, regulations or standards with the sole intention to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory; or
(b) waive or otherwise derogate from, or offer to waive or otherwise derogate from, such domestic laws, regulations or standards in order to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory.
Article 8.4. Sustainable Economic Development
1. The Parties recognise that trade is an engine for inclusive economic growth and poverty reduction, and contributes to the promotion of sustainable development in all its dimensions.
2. The Parties shall strive to facilitate and promote investment, trade in, and dissemination of, goods and services that contribute to sustainable development, such as environmental technologies, sustainable renewable energy, as well as goods and services that are energy efficient or subject to voluntary sustainability schemes.
3. The Parties agree to exchange views and may consider, jointly or bilaterally, cooperation in this area.
Article 8.5. Social Development
1. The Parties recall the obligations deriving from the international human rights instruments to which they are a party.
2. The Parties underline the need to protect the welfare and improve the livelihoods of vulnerable groups such as women, children, small holders, subsistence farmers or fishermen.
3. The Parties emphasise the importance of information, education and training on sustainability at all levels in order to contribute to sustainable social development.
Article 8.6. International Labour Standards and Agreements
1. The Parties recall the obligations deriving from membership of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up adopted by the International Labour Conference at its 86th Session in 1998, to respect, promote and realise the principles concerning the fundamental rights, namely:
(a) freedom of association and the effective recognition of the right to collective bargaining;
(b) the elimination of all forms of forced or compulsory labour;
(c) the effective abolition of child labour; and
(d) the elimination of discrimination in respect of employment and occupation.
2. The Parties reaffirm their commitment, under the Sustainable Development Goal number 8 as well as the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, to recognise full and productive employment and decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation and to promoting the development of international trade in a way that is conducive to full and productive employment and decent work for all.
3. The Parties recall the obligations deriving from membership of the ILO to effectively implement the ILO Conventions, which they have ratified, and to make continued efforts towards ratifying the fundamental ILO Conventions as well as the other Conventions that are classified as "up-to-date" by the ILO.
4. The Parties reaffirm, as set out in the ILO Declaration on Social Justice for a Fair Globalization, adopted by the International Labour Conference at its 97" Session in 2008, that the violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage and that labour standards shall not be used for protectionist trade purposes.
Article 8.7. Multilateral Environmental Agreements and Environmental Principles
1. The Parties reaffirm their commitment to the effective implementation in their domestic laws, regulations and practices of the multilateral environmental agreements to which they are a party.
2. The Parties reaffirm their adherence to environmental principles reflected in the international instruments referred to in Article 8.1 (Context, Objectives, and Scope).
Article 8.8. Sustainable Forest Management and Associated Trade
1. The Parties recognise the importance of effective law and governance in order to ensure sustainable management of forests and peatlands and thereby contribute to the reduction of greenhouse gas emissions and biodiversity loss resulting from deforestation and degradation of natural forests and peatlands, including from land-use change.
2. With the aim of contributing to sustainable management of forests and peatlands, including through the promotion of trade in products that derive from sustainably managed forests, the Parties undertake to, inter alia:
(a) promote the effective use of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES);
(b) promote the development and use of certification schemes for forest- related products from sustainably managed forests;
(c) promote the effective implementation and use of legality assurance system for timber as required in Forest Law Enforcement Governance and Trade Voluntary Partnership Agreement and corresponding schemes, with the aim to combat illegal logging and eliminate trade of illegal timber products; and
(d) exchange information on trade-related initiatives on forest governance, including measures to combat illegal logging and measures to exclude illegally harvested timber and timber products from trade flows.
3. The Parties agree to cooperate on issues pertaining to sustainable management of forests and peatlands through bilateral arrangements if applicable and in the relevant multilateral fora in which they participate, in particular the United Nations collaborative initiative on Reducing Emissions from Deforestation and Forest Degradation as emphasised in the Paris Agreement.
Article 8.9. Sustainable Management of Fisheries and Aquaculture and Associated Trade
1. The Parties recognise the importance of ensuring the conservation and sustainable management of living marine resources and marine ecosystems, and the role of trade in pursuing these objectives.
2. For the purposes of paragraph 1, and in a manner consistent with their international obligations, the Parties commit to: