1. Article 6.3 (National Treatment) shall not apply to:
(a) any reservation in Annex XVI (Investment Reservations); and
(b) an amendment to a reservation referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the reservation with Article 6.3 (National Treatment);
to the extent that such reservations are inconsistent with Article 6.3 (National Treatment).
2. A Party may, either upon request of another Party or unilaterally, remove in whole or in part its reservations set out in Annex XVI (Investment Reservations).
3. A Party may propose to incorporate a new reservation into Annex XVI (Investment Reservations) which does not affect the general level of mutually advantageous commitments provided for in Annex XVI (Investment Reservations) or the overall level of commitments of that Party under this Agreement by written notification to the other Parties. Upon receipt of such written notification, a Party may request consultations regarding the reservation within 60 days. Upon receipt of the request for consultations, the Party intending to incorporate the new reservation shall enter into consultations with the requesting Party within three months from the date of the request.
4. Modifications of the Annex XVI (Investment Reservations) pursuant to paragraphs 2 and 3 are subject to the procedures set out in Article 13.1 (Joint Committee).
Article 6.5. 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 personâs 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. Each Party shall, subject to its domestic laws and regulations, grant entry and temporary stay and provide any necessary confirming documentation to the spouse and minor children of a natural person who has been granted entry, temporary stay and authorisation to work in accordance with paragraphs 1 and 2. The spouse and minor children shall be admitted for the period of the stay of that person.
Article 6.6. Right to Regulate
1. The Parties reaffirm their right to regulate within their jurisdictions to achieve legitimate policy objectives, such as the protection of public health, safety, or the environment.
2. No Party shall 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 6.7. Payments and Transfers
1. Except under the circumstances envisaged in Article 6.8 (Restrictions to Safeguard the Balance of Payments), no Party shall apply restrictions (19) on current payments and capital movements (20) relating to commercial presence activities in non- services sectors. (21)
2. Current payments and capital movements referred to in paragraph 1 shall be made in any freely convertible currency at the market rate of exchange prevailing at the time of transfer.
3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer through the equitable, non-discriminatory, and good faith application of its domestic laws and regulations relating to, inter alia:
(a) bankruptcy, insolvency, or the protection of the rights of creditors including employees;
(b) issuing, trading, or dealing in securities, futures, options, or derivatives; (c) criminal or penal offences and the recovery of the proceeds of crime;
(d) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; or
(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.
4. 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 no Party shall impose restrictions on capital transactions inconsistently with its obligations under this Chapter regarding such transactions, except under Article 6.8 (Restrictions to Safeguard the Balance of Payments) or at the request of the IMF.
Article 6.8. Restrictions to Safeguard the Balance of Payments
1. In the event of serious balance-of-payments and external financial difficulties or threat thereof (22), a Party may adopt or maintain restrictions on payments or transfers relating to commercial presence activities in non-services sectors. It is recognised that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition.
2. For the purposes of this Chapter, paragraphs 2 and 3 of Article XII of the GATS apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis.
3. A Party adopting or maintaining such restrictions shall promptly notify the Joint Committee.
Article 6.9. Consultations on Subsidies
Notwithstanding Article 6.1 (Scope and Coverage), a Party which considers that it is adversely affected by a subsidy of another Party may request ad hoc consultations with that Party on such matters. The requested Party shall enter into such consultations.
Article 6.10. General Exceptions
For the purposes of this Chapter, Article XX of the GATT 1994 and Article XIV of the GATS apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis. (23)
Article 6.11. Security Exceptions
For the purposes of this Chapter, Article XXI of the GATT 1994 and paragraph 1 of Article XIV bis of the GATS apply and are hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 6.12. Review
1. This Chapter shall be subject to periodic review by the Joint Committee regarding the possibility to further develop the Parties' commitments.
2. Pursuant to Article 13.1 (Joint Committee), the Parties undertake to review the reservations set out in Annex XVI (Investment Reservations) with a view to reducing or removing such reservations.
3. If a Party accords more favourable treatment to natural and juridical persons of a non-Party with regard to measures within the scope of Article 6.3 (National Treatment) in an agreement concluded after the signing of this Agreement, it shall, upon request of another Party, enter into negotiations with that other Party without undue delay with a view to reviewing Annex XVI (Investment Reservations) pursuant to Article 13.1 (Joint Committee) to ensure a no less favourable treatment.
Article 6.13. Promotion of Investment
The Parties recognise the importance of promoting cross-border investment and technology flows as a means for achieving economic growth and sustainable development. Co-operation between the Parties on matters of mutual interest in this respect may include:
(a) identifying investment opportunities through appropriate means, such as organising investment promotion activities; and
(b) conducting information exchanges on measures and other issues relating to investment promotion.
Article 6.14. Facilitation of Investment
Subject to its domestic laws and regulations, each Party shall endeavour to facilitate investments among the Parties, including through:
(a) creating an environment conducive to increased investment flows; (b) simplifying its procedures for investment applications and approvals;
(c) promoting the dissemination of investment information, including investment rules, laws, regulations, policies, and procedures; and
(d) establishing or maintaining contact points, one-stop investment centres, focal points, or other entities in the respective Party to provide assistance and advisory services to investors, including the facilitation of operating licences and permits.
Chapter 7. INTELLECTUAL PROPERTY
Article 7.1. 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 this Chapter and Annex XVII (Protection of Intellectual Property), and the international agreements in the field of intellectual property to which Parties are parties.
2. The Parties shall accord to each Party's nationals treatment no less favourable than that they accord to their own nationals in respect of rights provided under this Chapter, subject to the exceptions provided in the TRIPS Agreement and in the multilateral agreements administered by the World Intellectual Property Organization (WIPO) not referred to in the TRIPS Agreement.
3. The Parties shall accord to each Party's nationals treatment no less favourable than that accorded to nationals of a non-Party, subject to the exceptions provided in the TRIPS Agreement.
4. The Parties agree to discuss and aim to resolve, within the mandate of the Joint Committee set outin Article 13.1 (Joint Committee), issues relating to the implementation or application of this Chapter and Annex XVII (Protection of Intellectual Property), with a view to avoiding or remedying trade distortions.
Chapter 8. GOVERNMENT PROCUREMENT
Article 8.1. Objectives
The Parties recognise the importance of enhancing the mutual understanding of each other's government procurement laws, regulations, and procedures with a view to developing cooperation among the Parties and facilitating participation in their respective procurement markets by promoting non-discrimination, transparency and reciprocity.
Article 8.2. Scope
This Chapter shall apply to the domestic laws, regulations and procedures of a Party regarding government procurement.
Article 8.3. Principles
Each Party shall promote and apply the principles of transparency, value for money, accountability, and due process regarding government procurement procedures, in accordance with the Party's domestic laws, regulations and procedures.
Article 8.4. Transparency
1. Each Party shall publish or make publicly available its domestic laws, regulations, procedures and judicial decisions regarding government procurement, including information on where tender opportunities are published.
2. To the extent possible and as appropriate, each Party shall endeavour to make available and update the information referred to in paragraph 1 through electronic means.
3. Each Party shall specify in Annex XVII (Means of Publication for Government Procurement) the means utilised by that Party to publish the information referred to in paragraph 1.
Article 8.5. Use of Electronics Means
In respect of procurement conducted by entities within the scope of this Chapter, the Parties shall endeavour to use electronic means for the publication of notices, tender documentation, information exchange and communication, and the submission of tenders.
Article 8.6. Environmentally Sustainable Procurement
The Parties recognise that government procurement can contribute to environmental sustainability. Accordingly, each Party shall endeavour to incorporate environmentally sustainable procurement policies and practices in accordance with the Party's domestic laws, regulations and procedures.
Article 8.7. Facilitation of Participation by SMEs
The Parties recognise the important contribution that small and medium-sized enterprises, including micro-sized enterprises (SMEs), can make to economic growth and employment and the importance of facilitating the participation of SMEs in government procurement.
Article 8.8. Cooperation
The Parties endeavour to cooperate on matters relating to government procurement with a view to achieving a better understanding of each Party's respective government procurement system. Such cooperation may include:
(a) exchanging information, to the extent possible, on Parties' domestic laws, regulations, and procedures, and any modifications thereof;
(b) providing training, technical assistance, or capacity building to Parties, and sharing information on these initiatives;
(c) sharing information, where possible, on best practices, including those in telation to SMEs; and
(d) sharing information, where possible, on electronic procurement systems.
Article 8.9. Further Negotiations
1. If a Party concludes an agreement granting market access for government procurement to a non-Party, it shall promptly notify the other Parties.
2. If a Party grants to a non-Party additional benefits with regard to the access to its procurement markets after the entry into force of this Agreement, it shall enter into negotiations with the other Parties with a view to offering similarly favourable treatment and agreeing on the market access commitments.
3. For the purpose of paragraph 2, the Parties shall amend this Agreement to consolidate the treatment referred to in paragraph 2 on a reciprocal basis within one year from entry into force of the relevant agreement referred to in paragraph 1. This amendment shall be subject to ratification or acceptance by the Parties.
Article 8.10. Review
Notwithstanding Article 8.9 (Further Negotiations), the Joint Committee shall conduct regular reviews of this Chapter, with a view to examining the possibilities of developing and deepening the cooperation between the Parties in the area of government procurement.
Article 8.11. Contact Points
1. Each Party shall, within 30 days of entry into force of this Agreement for that Party, designate one or more contact points to facilitate cooperation and information sharing under this Chapter and of the relevant details of that contact point or those contact points.
2. Each Party shall promptly notify the other Parties of any change regarding the relevant details of its contact point or contact points.
Chapter 9. COMPETITION
Article 9.1. Rules of Competition
1. The Parties recognise that anticompetitive practices have the potential to undermine the benefits 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. Paragraph 1 shall also apply to the activities of public enterprises, and enterprises to which the Parties grant special or exclusive rights, in so far as the application of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them.
3. This Chapter shall be without prejudice to the autonomy of each Party to develop, maintain and enforce its competition laws and regulations.
4. This Article shall not be construed to create any direct obligations for enterprises.
Article 9.2. Cooperation
1. The Parties shall cooperate and consult with regard to anticompetitive practices referred to in paragraph 1 of Article 9.1 (Rules of Competition), with the aim of putting an end to such practices or their adverse effects on trade.
2. Cooperation may include the 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 9.3. Consultations
1. If a Party considers that a given practice contimes to affect trade in the sense of paragraph 1 of Article 9.1 (Rules of Competition), after cooperation or consultations in accordance with Article 9.2 (Cooperation), it may request consultations in the Joint Committee.
2. The Parties concerned shall provide the Joint Committee with all the support and available information in order to examine the matter and, where appropriate, eliminate the practice objected to.
3. The Joint Committee shall, within 60 days from the receipt of the request, examine the information provided in order to facilitate a mutually acceptable solution of the matter.
Article 9.4. Dispute Settlement
No Party shall have recourse to Chapter 14 (Dispute Settlement) for any matter arising under this Chapter.
Chapter 10. TRADE AND SUSTAINABLE DEVELOPMENT
Article 10.1. Context, Objectives and Scope
1. The Parties recall the Stockholm Declaration on the Human Environment of 1972, the Rio Declaration on Environment and Development of 1992, Agenda 21 on Environment and Development of 1992, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022, the Ministerial Declaration of the UN Economic and Social Council on Generating Full and Productive Employment and Decent Work for All of 2006, the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022, the ILO Centenary Declaration for the Future of Work of 2019, the Rio+20 Outcome Document "The Future We Want" of 2012 and the UN 2030 Agenda for Sustainable Development of 2015.
2. The Parties shall promote sustainable development which encompasses economic development, social development and environmental protection, all three being interdependent and mutually reinforcing. They underline the benefit of cooperation on trade and investment related aspects of labour and environmental issues as part of a global approach to trade and sustainable development.
3. The Parties affirm their commitment to promote the development of international trade and investment as well as their preferential economic relationship in a manner that is beneficial to all and that contributes to sustainable development.
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. Except as otherwise provided for in this Chapter, this Chapter applies to measures adopted or maintained by a Party affecting trade-related and investment-related aspects of labour and environmental issues.
Article 10.2. Right to Regulate and Levels of Protection
1. Recognising the right of each Party, subject to the provisions of this Agreement, to establish its own level of environmental and labour protection, and to adopt or modify accordingly its relevant laws, policies and practices, each Party shall seek to ensure that its laws, policies and practices provide for and encourage high levels of environmental and labour protection, consistent with the standards, principles and agreements referred to in this Chapter as applicable to each Party. Each Party will strive to further improve the level of protection provided for in those laws, policies and practices.
2. The Parties recognise the importance of taking account of scientific, technical and other information, and relevant international standards, guidelines and recommendations when preparing and implementing measures related to the environment and labour conditions that affect trade and investment between them.
3. The Parties agree that the provisions of this Chapter shall not be applied in a manner which would constitute a disguised restriction on trade or investment.
Article 10.3. Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards
1. No Party shall fail to effectively enforce its environmental and labour laws, regulations or standards in a manner affecting trade or investment between the Parties.
2. No Party shall weaken or reduce the level of environmental or labour protection provided by its laws, regulations or standards with the sole intention to seek a competitive trade advantage of producers or service providers operating in that Party or to otherwise encourage trade or investment.
3. No Party shall waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws, regulations or standards in order to encourage investment from another Party or to seek a competitive trade advantage of producers or service providers operating in that Party.
Article 10.4. International Labour Standards and Agreements
1. The Parties reaffirm their commitment to promote the development of international trade and investment in a way that is conducive to full and productive employment and decent work for all.
2. The Parties recall the obligations deriving from membership of the ILO, including the obligations in respect of the fundamental principles and rights at work as reflected in the ILO Declaration on Fundamental Principles and Rights at Work of 1998, as amended in 2022. They commit 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;
(d) the elimination of discrimination in respect of employment and occupation; and
(e) a safe and healthy working environment.
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 and sustained efforts towards ratifying the fundamental ILO Conventions and related protocols, the governance Conventions as well as the other Conventions that are classified as "up-to-date" by the ILO.
4. The Parties recognise the importance of the strategic objectives of the ILO Decent Work Agenda, as reflected in the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022.
5. The Parties commit to:
(a) develop and enhance measures for social protection and decent working conditions for all, including with regard to social security, occupational safety and health, wages and earnings, working time and other conditions of work;
(b) promote social dialogue and tripartism; and (c) build and maintain a well-functioning labour inspection system.
6. Each Party shall ensure that administrative and judicial proceedings are accessible and available in order to permit effective action to be taken against infringements of labour rights referred to in this Chapter.
7. The Parties reaffirm, as set out in the ILO Declaration on Social Justice for a Fair Globalization of 2008, as amended in 2022, 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 10.5. Inclusive Economic Development and Equal Opportunities for All
1. The Parties acknowledge the importance of incorporating a gender perspective in the promotion of inclusive economic development and that gender-responsive policies are key elements to enhance the participation of all in the economy and international trade in order to achieve sustainable economic growth.
2. The Parties reaffirm their commitment to implement in their laws, policies and practices the international agreements pertaining to gender equality or non-discrimination to which they are a party.
Article 10.6. Multilateral Environmental Agreements and International Environmental Governance
1. The Parties recognise the importance of multilateral environmental agreements and international environmental governance as a response of the international community to global or regional environmental challenges and stress the need to enhance the mutual supportiveness between trade and environment policies.
2. The Parties reaffirm their commitment to the effective implementation in their laws, policies and practices of the multilateral environmental agreements to which they are a party, as well as their adherence to environmental principles reflected in the international instruments referred to in Article 10.1 (Context, Objectives and Scope).
Article 10.7. Sustainable Forest Management and Associated Trade
1. The Parties recognise the importance of ensuring conservation and sustainable management of forests and related ecosystems such as mangroves and peatlands and thereby contributing to the reduction of greenhouse gas emissions and biodiversity loss resulting from deforestation and forest degradation, including from land use and land-use change for economic activities.
2. Pursuant to paragraph 1, the Parties commit to:
(a) ensure effective forest law enforcement and governance;
(b) promote trade in products that derive from sustainably managed forests and related ecosystems;
(c) implement measures to combat illegal logging and promote the development and use of timber legality assurance instruments to ensure that only legally sourced timber is traded between the Parties;
(d) promote the effective use of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) with particular tegard to timber species; and
(e) cooperate on issues pertaining to conservation and sustainable management of forests, mangroves and peatlands where relevant through existing bilateral arrangements if applicable and in the relevant multilateral fora in which they participate, in particular through the United Nations collaborative initiative on Reducing Emissions from Deforestation and Forest Degradation (REDD+) as encouraged by the Paris Agreement of 2015 (Paris Agreement).