Closer Economic Partnership Agreement between New Zealand and Hong Kong, China

PREAMBLE

str. 1- CHAPTER 1: INITIAL PROVISIONS
- CHAPTER 2: GENERAL DEFINITIONS AND INTERPRETATIONS

ANNEX I TO CHAPTER 3 (TRADE IN GOODS)*:

- CHAPTER 3: TRADE IN GOODS TARIFF SCHEDULES
- CHAPTER 4: RULES OF ORIGIN ANNEX I TO CHAPTER 4 (RULES OF ORIGIN)*: PRODUCT SPECIFIC RULES SCHEDULE
- CHAPTER 5: CUSTOMS PROCEDURES AND COOPERATION
- CHAPTER 6: TRADE REMEDIES
- CHAPTER 7: SANITARY AND PHYTOSANITARY MEASURES

str. 2- CHAPTER 8: TECHNICAL BARRIERS TO TRADE
- CHAPTER 9: COMPETITION
- CHAPTER 10: ELECTRONIC COMMERCE
- CHAPTER 11: INTELLECTUAL PROPERTY
- CHAPTER 12: GOVERNMENT PROCUREMENT

ANNEX I TO CHAPTER 12 (GOVERNMENT PROCUREMENT): LIST OF ENTITIES AND

COVERED GOODS AND SERVICES

ANNEX II TO CHAPTER 12 (GOVERNMENT PROCUREMENT): THRESHOLDS

ANNEX III TO CHAPTER 12 (GOVERNMENT PROCUREMENT): SINGLE ELECTRONIC POINT OF ACCESS

(GOVERNMENT

ANNEX IV TO CHAPTER 12 PROCUREMENT): CONTACT POINT

CHAPTER 13: TRADE IN SERVICES

str. 3ANNEX I TO CHAPTER 13 (TRADE IN SERVICES)

ANNEX II TO CHAPTER 13 (TRADE IN SERVICES)

ANNEX III TO CHAPTER 13 (TRADE IN SERVICES):

DISCIPLINES ON DOMESTIC REGULATION

ANNEX IV TO CHAPTER 13 (TRADE IN SERVICES): EDUCATION COOPERATION

CHAPTER 14: MOVEMENT OF BUSINESS PERSONS

str. 3ANNEX I TO CHAPTER 14 (MOVEMENT OF BUSINESS PERSONS)

CHAPTER 15: TRANSPARENCY

CHAPTER 16: DISPUTE SETTLEMENT

ANNEX I TO CHAPTER 16 (DISPUTE SETTLEMENT): MODEL RULES OF PROCEDURE FOR ARBITRAL TRIBUNALS

CHAPTER 17: ADMINISTRATIVE PROVISIONS

AND

INSTITUTIONAL

CHAPTER 18: GENERAL PROVISIONS

CHAPTER 19: EXCEPTIONS

CHAPTER 20:

FINAL PROVISIONS

*This Annex appears at the end of this Agreement

PREAMBLE

str. 4The Governments of New Zealand and the Hong Kong Special Administrative Region of the People's Republic of China ('Hong Kong, China'), hereinafter referred to collectively as 'the Parties':

Conscious of their longstanding friendship and growing economic, trade and investment relationship;

Believing that open, transparent and competitive markets are the key drivers of economic efficiency, innovation, wealth creation and consumer welfare;

Considering that electronic commerce, information technologies and knowledge-based industries are supporting the rapid integration of global economic activity and development and expansion of their economies;

Recognising the importance of ongoing liberalisation of trade in goods and services at the multilateral level;

Aware of the growing importance of trade and investment for the economies of the Asia-Pacific region;

Confirming their rights, obligations and undertakings under the WTO Agreement and other multilateral, regional and bilateral agreements and arrangements;

Confirming their support for the efforts of all APEC economies to meet the APEC goal of free and open trade and investment;

Recognising their commitment to securing trade liberalisation, the removal of barriers to trade in goods and services and investment flows and an outward-looking approach to trade and investment;

str. 5Mindful that trade remedies should not be used in an arbitrary or protectionist manner and should be carried out in accordance with the principle of fairness and accepted WTO standard practice;

Confirming their shared commitment to trade facilitation through removing or reducing, inter alia , technical, sanitary and phytosanitary barriers to, and reducing costs of, the movement of goods between Hong Kong, China and New Zealand;

Desiring to promote regulatory cooperation and to encourage greater international alignment of standards and regulations;

Recognising their right to regulate, and to introduce new regulations on the supply of services and investment in order to meet government policy objectives;

Mindful that fostering innovation and the promotion and protection of intellectual property rights will encourage further trade, investment and cooperation between the Parties;

Conscious that a clearly established and transparent framework of rules for trade in goods and services and for investment will provide confidence and certainty to their businesses to take investment and planning decisions, lead to a more effective use of resources and increase capacity to contribute to economic development and prosperity through international exchanges and the promotion of closer links with other economies, especially in the APEC region;

Mindful that economic development, social development and environmental protection are interdependent and mutually reinforcing components of sustainable development and that closer economic partnership can play an important role in promoting sustainable development;

str. 6Considering the benefits of enhancing communication and cooperation on labour and environmental matters of mutual interest through bilateral agreements between them;

Recognising the need for good corporate governance and a predictable, transparent and consistent business environment, so that businesses can conduct transactions freely, use resources efficiently and obtain rewards for innovation;

Recognising that liberalised trade in goods and services and strengthening their economic partnership will assist the expansion of trade and investment flows, raise the living standards of their people and create new employment opportunities and improved conditions in their respective economies;

Have agreed as follows:

INITIAL PROVISIONS

Article 1 Establishment of the Free Trade Area

str. 7The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and Article V of GATS , hereby establish a free trade area.

Article 2 Objectives

str. 8The objectives of this Agreement, as elaborated more specifically through its principles and rules, are to:

- (a) strengthen the Parties' bilateral relationship through the establishment of a mutually beneficial closer economic partnership;
- (b) liberalise, facilitate and expand bilateral trade in goods and services, including through the removal of trade barriers and the disciplined use of trade remedy measures;
- (c) ensure a liberal, open bilateral environment to expand investment;
- (d) promote conditions for an open and competitive market in the free trade area for the purposes of enhancing trade and investment;
- (e) ensure measures affecting trade and investment between the two economies are transparent, fair and equitable;
- (f) promote effective protection and enforcement of intellectual property rights in each Party's Area; - (g) provide an effective mechanism to prevent and resolve trade disputes;
- (h) support the wider liberalisation process in APEC and in particular the efforts of all APEC economies to meet the APEC goal of free and open trade and investment; and
- (i) support the WTO in its efforts to create a predictable, freer and more open global trading environment.

GENERAL DEFINITIONS AND INTERPRETATIONS

Article 1

Definitions of General Application

Article 2 Interpretations

str. 11In this Agreement, unless the context otherwise requires:

- (a) in the case of Hong Kong, China;
- (i) where an expression is qualified by the term 'national', such expression shall be interpreted as pertaining to Hong Kong, China; and
- (ii) the term 'international agreement' shall include an agreement or arrangement entered into by Hong Kong, China with other parts of the People's Republic of China.

str. 12For the purposes of Chapter 13 (Trade in Services), Hong Kong, China shall ensure that such agreements or arrangements which are referred to in Paragraph 4 of Article 12 (Most Favoured Nation Treatment) are published or otherwise

- made available through the internet or in print form to New Zealand promptly after these agreements or arrangements have come into force or effect; and

- (b) where anything under this Agreement is to be done within a number of days after, before or of a specified date or event, the specified date or the date on which the specified event occurs shall not be included in calculating that number of days.

TRADE IN GOODS

Article 1 Scope

str. 13Except as otherwise provided, this Chapter shall apply to trade in all goods between the Parties.

Article 2 National Treatment

str. 13Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994 . To this end, Article III of GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis .

Article 3 Elimination of Customs Duties

str. 131. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party. 2. Except as otherwise provided in this Agreement, and subject to each Party's Tariff Schedule in Annex I, as at the date of entry into force of this Agreement each Party shall eliminate its customs duties on originating goods of the other Party.

Article 4 Fees and Charges Connected with Importation and Exportation

str. 131. The Parties agree that fees, charges, formalities and requirements imposed in connection with the importation and exportation of goods shall be consistent with their obligations under GATT 1994 .

str. 142. Each Party shall make available through the internet or a comparable computer-based telecommunications network details of the fees and charges it imposes in connection with importation and exportation. 3. Neither Party may require that any documentation supplied in connection with the importation of any good of the other Party be endorsed, certified or otherwise sighted or approved by the importing Party's overseas representatives, or persons or entities with authority to act on the importing Party's behalf, nor impose any related fees or charges.

Article 5 Non-Tariff Measures

str. 141. Neither Party shall adopt or maintain any non-tariff measures on the importation of any good of the other Party or on the exportation of any good destined for the Area of the other Party except in accordance with its WTO rights and obligations or in accordance with other provisions of this Agreement. 2. Each Party shall ensure its non-tariff measures permitted in Paragraph 1 are not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to trade between the Parties.

Article 6 Consumer Protection

str. 141. The Parties affirm their commitment to provide protection in their Areas from deceptive practices or the use of false or misleading descriptions in trade. 2.

str. 15Each Party shall provide the legal means for its authorities and, to the extent permitted by its domestic law, interested parties to prevent the sale of products within the Party's Area which are labelled in a manner which is false,

deceptive or misleading or is likely to create an erroneous impression about the character, composition, quality or origin, including country of origin, of the product. In addition, each Party shall provide the legal means for its authorities, to the extent permitted by its domestic law, and its interested parties to claim compensation for any loss suffered from such sale.

Article 7 Committee on Trade in Goods

str. 151. The Parties hereby establish a Committee on Trade in Goods ('the Committee'), comprising representatives of each Party. 2. The Committee shall meet at the request of either Party or the Joint Commission to consider any matter arising under this Chapter, Chapter 4 (Rules of Origin), Chapter 5 (Customs Procedures and Cooperation), or Chapter 6 (Trade Remedies). Meetings of the Committee may be conducted in person or via teleconference, video-conference or any other means mutually determined by the Parties. 3. The Committee's functions shall include:
2. (a) reviewing implementation of the Chapters referred to in Paragraph 2;
3. (b) addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures other than measures covered under Chapters 7 (Sanitary and Phytosanitary Measures) and 8 (Technical Barriers to Trade); and
4. (c) referring matters considered by the Committee to the Joint Commission where the Committee considers this appropriate.

Article 8 Contact Points and Consultations

str. 161. Each Party shall designate one or more contact points to facilitate communication between the Parties on any matter relating to this Chapter. The Parties shall notify each other promptly of any amendments to the details of their contact points. 2. Where either Party considers that any actual or proposed measure of the other Party may materially affect trade in goods between the Parties, that Party may through the contact point of the other Party request detailed information relating to that measure and, if necessary, request consultations with a view to resolving any concerns about the measure. 3. The requested Party shall respond promptly to any such request for information. 4. Any consultations requested under Paragraph 2 shall be conducted through the relevant contact points and shall take place within 30 days of the receipt of the request, unless the Parties mutually determine otherwise. 5. Any action taken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

RULES OF ORIGIN

Section A: Rules of Origin

Article 1 Definitions

Article 2 Originating Goods

str. 18For the purposes of this Chapter, a good shall qualify as an originating good if it:

str. 19- (a) is wholly obtained or produced in the Area of a Party as provided for in Article 4;
- (b) is produced entirely in the Area of one or both Parties exclusively from originating materials from one or both Parties; or
- (c) is produced in the Area of one or both Parties using non-originating materials that conform to a change in tariff classification requirement, a regional value content requirement (as provided for in Article 5) or other requirements as specified in Annex I;

and the good meets the other applicable provisions of this Chapter.

Article 3 Preferential Tariff Treatment

str. 19Preferential tariff treatment provided for in this Agreement shall be applied to goods that qualify as originating goods in accordance with Article 2.

Article 4 Wholly Obtained or Produced Goods

str. 20For the purposes of subparagraph (a) of Article 2, the following goods shall be considered as wholly obtained or produced:

- (a) plant and plant goods, including fruit, flowers, vegetables, trees, seaweed, fungi and live plants, grown, harvested, picked or gathered in the Area of a Party;
- (b) live animals born and raised in the Area of a Party;
- (c) goods obtained from live animals in the Area of a Party; - (d) goods obtained from hunting, trapping, fishing, farming, aquaculture, gathering or capturing in the Area of a Party;
- (e) minerals and other naturally occurring substances extracted or taken from the soil, waters, seabed or subsoil, in the Area of a Party;
- (f) goods of sea-fishing and other marine goods taken from the high seas, in accordance with international law, by any vessel registered in a Party and entitled to fly the flag of that Party in accordance with the United Nations Convention on the Law of the Sea 1982 ('UNCLOS');
- (g) goods processed and/or produced on board any factory ship registered in a Party and entitled to fly the flag of that Party in accordance with UNCLOS, from the goods referred to in subparagraph (f);
- (h) goods extracted or taken by a Party, or a person of a Party, from the seabed or subsoil beyond the Exclusive Economic Zone and adjacent Continental Shelf of that Party and beyond areas over which third parties exercise jurisdiction, under exploitation rights granted in accordance with international law;
- (i) goods which are:
- (i) waste and scrap derived from production or consumption in the Area of a Party provided that such goods are fit only for the recovery of raw materials; or
- (ii) used goods collected in the Area of a Party provided that such goods are fit only for the recovery of raw materials; and

str. 21- (j) goods obtained or produced in the Area of a Party solely from products referred to in subparagraphs (a) to (i) or from their derivatives.

Article 5 Regional Value Content

str. 22For the purposes of this Chapter, the formula for calculating the regional value content ('RVC') shall be either:

- (a) build-up formula

RVC = [(material cost + labour cost + overhead cost + profit + other costs)/FOB] x 100 %

or

- (b) build-down formula

RVC = [(FOB - value of non-originating materials) /FOB] x 100 %

where:

- (i) material cost is the value of originating materials, parts or produce that are acquired or self-produced by the producer in the production of the good;
- (ii) labour cost includes wages, remuneration and other employee benefits;
- (iii) overhead cost is the total overhead expense including product development and other production costs;
- (iv) other costs are the costs incurred in placing the good in the ship or other means of transport for export, including domestic

- transport costs, storage and warehousing, port handling, brokerage fees and service charges; - (v) FOB
- is the free-on-board value of the goods as defined in Article 1; and
- (vi) value of non-originating materials is the CIF value at the time of importation or the earliest ascertained price paid or payable in the Area of the Party where the production takes place for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. When the producer of a good acquires non-originating materials within that Party the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier's warehouse to the producer's location. Non-originating materials include materials of undetermined origin but do not include a material that is self-produced.

Article 6 Accumulation

str. 22Originating materials from the Area of a Party, incorporated into a good in the Area of the other Party, shall be considered to originate in the Area of the other Party.

Article 7 Minimal Operations and Processes

str. 221. Operations or processes undertaken by themselves or in combination with each other for purposes such as those listed below are considered to be minimal and shall not confer origin:

str. 23- (a) ensuring preservation in good condition for the purposes of transport or storage;
- (b) facilitating shipment or transportation;
- (c) packaging or presenting goods for sale;
- (d) affixing of marks, labels or other like distinguishing signs on products or their packaging;
- (e) simple processes consisting of sifting, classifying, washing, cutting, slitting, bending, coiling and uncoiling and other similar operations; and
- (f) mere dilution with water or another substance that does not materially alter the characteristics of the goods. 2. Where a RVC approach has been applied, minimal processes and operations referred to in Paragraph 1 shall be taken into account for the RVC calculation.

Article 8 De Minimis

str. 23Each Party shall provide that a good that does not undergo a change in tariff classification pursuant to Annex I is nonetheless an originating good if:

- (a) the value of all non-originating materials, including materials of undetermined origin, used or consumed in the production of the good that do not undergo the required change in tariff classification does not exceed ten percent of the FOB value of the good; and
- (b) the good meets all other applicable requirements of this Chapter.

Article 9 Direct Consignment

str. 24A good shall retain its originating status as determined under Article 2 if the following conditions have been met:

- (a) the good has been transported to the importing Party without passing through the territory of any non-Party; or
- (b) the good has transited through one or more non-Parties, with or without transhipment or temporary storage of up to six months in those non-Parties, provided that:
- (i) the good has not entered trade or commerce there; and
- (ii) the good has not undergone any operation there other than unloading and reloading, repacking, or any operation required to preserve it in good condition or to transport it to the importing Party.

Article 10 Treatment of Packing Materials and Containers

str. 241. Packing materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of any good. 2. Packing materials and containers in which a good is packaged for retail sale, when classified together with that good, shall not be taken into account in determining whether all of the non-originating materials used in the production of the good have met the applicable change in tariff classification requirements for the good.

str. 253. If a good is subject to a regional value content requirement, the value of the packing materials and containers in which the good is packaged for retail sale shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 11 Accessories, Spare Parts, Tools and Instructional or Information Material

str. 251. For the purpose of determining the origin of a good, accessories, spare parts, tools and instructional or other information materials presented with the good shall be considered part of that good and shall be disregarded in determining whether all the non-originating materials used in the production of the originating good have undergone the applicable change in tariff classification, provided that:

- (a) the accessories, spare parts, tools and instructional or other information materials presented with the good are not invoiced separately from the originating good; and
- (b) the quantities and value of the accessories, spare parts, tools and instructional or other information materials presented with the good are customary for that good. 2. Notwithstanding Paragraph 1, if a good is subject to a regional value content requirement, the value of the accessories, spare parts, tools and instructional or other information materials presented with the good shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good. 3.

str. 26Paragraph 2 shall not apply where accessories, spare parts, tools and instructional or other information materials

presented with the good have been added solely for the purpose of artificially raising the regional value content of that good.

Article 12 Indirect Materials

str. 261. An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good. 2.

Article 13 Identical and Interchangeable Materials

str. 271. In determining whether a good is an originating good, any identical or interchangeable materials shall be distinguished by:

- (a) physical separation of the goods; or
- (b) an inventory management method recognised in the generally accepted accounting principles of the exporting Party. 2. Identical or interchangeable materials are goods or materials which are interchangeable for commercial purposes, whose properties are essentially identical, and between which it is impractical to differentiate by a mere visual examination.

Article 14 Compliance

str. 27Compliance with the requirements of this Section shall be determined in accordance with the provisions of Section B as applicable.

Section B: Operational Procedures

Article 15 Definitions

str. 27For the purposes of this Section:

str. 28- (a) certificate of origin means a certificate issued by the Trade and Industry Department of Hong Kong, China or by a Government Approved Certification Organisation of Hong Kong, China which certifies that the goods to which the certificate relates are originating goods in accordance with this Chapter; and
- (b) declaration of origin means an appropriate statement as to the origin of the goods made, in connection with their exportation, by the manufacturer, producer, supplier, exporter or other competent person on the commercial invoice or any other document relating to the goods.

Article 16 Treatment of Goods for which Preference is Claimed

str. 281. Each Party may require a declaration of origin of a good for which preferential tariff treatment is claimed. Where a Party requires a declaration of origin of a good, the importing Party shall grant preferential tariff treatment to goods imported into its Area from the other Party only in cases where an importer claiming preferential tariff treatment:

- (a) provides a declaration of origin of the good in accordance with this Chapter; or
- (b) provides other evidence to substantiate the origin of the goods. 2. With respect to any good falling within Chapter 61 or Chapter 62 of the Harmonized System, New Zealand shall require that a certificate of origin of a good be obtained by the importer for goods imported from the Area of Hong Kong, China where preferential tariff treatment is claimed.

Article 17

Declaration of Origin and Certificate of Origin

str. 291. The declaration of origin or certificate of origin shall specify on the face of the document issued in respect of the good that the goods enumerated thereon are the origin of the exporting Party and meet the requirements of this Chapter, and shall include:

- (a) a full description of the goods;
- (b) the goods' six digit Harmonized System reference;
- (c) the rule of origin by which the goods qualify (wholly obtained, produced entirely from originating materials or by product-specific rule including, where applicable, the regional value content);
- (d) the producer's name(s);
- (e) the exporter's name(s), address and contact details;
- (f) the consignee's name(s), address and contact details; and
- (g) the importer's name(s) in respect of imported goods, if known. 2. The declaration of origin or certificate of origin:
- (a) shall be completed in English; and
- (b) may be made in respect of one or more goods in the shipment. 3.

str. 30The certificate of origin shall also:
- (a) bear a unique reference number given by the issuer of the certificate of origin; and - (b) contain sufficient details to identify the consignment to which it relates 1 . 4. Further operational certification procedures that shall apply to the application for and issuing of a certificate of origin shall be mutually determined between the relevant agencies of the Parties in an exchange of letters. Any subsequent amendments shall be similarly mutually determined in an exchange of letters between the relevant agencies of the Parties.

Article 18 Exceptions from Declaration of Origin

str. 301. An importing Party may not require a declaration of origin to admit goods pursuant to tariff preference where:

- (a) the customs value of the importation does not exceed US$1,000 or the equivalent amount in the Party's currency or a higher amount as it may establish; or
- (b) in respect of specific goods, a Party has waived the requirement for a declaration of origin. 2. Where an importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the requirement for a declaration of origin, the customs administration of the importing Party may deny preferential tariff treatment. 1 Examples include the shipping marks, importer's purchase order number, exporter's invoice number, or number and types of packages.

Article 19 Records

str. 311. Each Party shall require that, consistent with its domestic law, producers, exporters or importers, as appropriate, maintain for a period specified in its domestic law all records relating to an exportation or importation which are necessary to demonstrate that a good for which a claim for tariff preference was made qualifies for preferential tariff treatment. In addition, Hong Kong, China shall inform producers in its Area that they should maintain for a period of not less than seven years after the date of exportation all records relating to that exportation which are necessary to demonstrate to New Zealand that a good for which a claim for tariff preference was made qualifies for preferential tariff treatment. 2. In addition, with respect to any good falling within Chapter 61 or Chapter 62 of the Harmonized System, Hong Kong, China shall seek a written commitment from the producer of the good that all records relating to that exportation which are necessary to demonstrate that a good for which a claim for tariff preference was made qualifies for preferential tariff treatment shall be maintained for a period of not less than seven years after the date of exportation. Where the producer provides such a written commitment, Hong Kong, China shall ensure that is recorded in the certificate of origin issued in respect of that good, and shall retain that written commitment for a period of not less than seven years. 3. The Trade and Industry Department of Hong Kong, China and each Government Approved Certification Organisation of Hong Kong, China shall maintain copies of certificates of origin and the application details submitted for a period of not less than seven years.

Article 20 Compliance with Direct Consignment

str. 32Compliance with Article 9 may be evidenced by means of supplying to the customs authorities of the importing Party either customs documents of a non-Party or documents of the competent authorities of a non-Party, together with commercial shipping or freight documents.

Article 21

Non-Party Invoicing

str. 32The customs administration of the importing Party may accept a declaration of origin in cases where the sales invoice is issued either by a company located in a non-Party or by an exporter for the account of that company, provided that the goods meet the requirements of Section A.

Article 22

Verification of Origin

str. 321. For the purposes of determining whether a good imported into its Area from the Area of the other Party qualifies as an originating good, the importing Party may, through its customs administration, conduct a verification of eligibility for preferential tariff treatment by means of:

- (a) requests for information to the importer;
- (b) requests for information to the exporter or producer in the Area of the other Party;
- (c) requests for information to the customs administration of the other Party;
- (d) subject to the consent of the relevant exporter or producer, visits to the premises of an exporter or producer in the Area of the other Party arranged by and in company with the customs administration of the other Party 2 ; or

- (e) such other procedures as the customs administrations of the Parties may agree. 2. Any such verification activities shall only be undertaken if:
- (a) there are reasonable grounds to doubt the accuracy or authenticity of the declaration of origin, certificate of origin, or the origin status of the goods concerned;
- (b) the purpose is to facilitate audit checks by the importing Party on a risk management basis; or
- (c) the purpose is to ascertain the fulfilment of any other requirement of this Chapter. 3. Any request that is made to the customs administration of the exporting Party pursuant to Paragraph 1 shall specify the reasons, and any documents and information supporting the request shall be forwarded to the customs administration of the exporting Party. 4. All requests for information shall be accompanied by sufficient information to identify the good about which the request is made.

Article 23 Denial of Preferential Tariff Treatment

str. 331. A Party may deny preferential tariff treatment for a good when:

2 For greater certainty, a visit shall not include the review of records kept by the exporter or producer including those records referred to in Article 19, unless the customs administrations of the Parties otherwise agree.

str. 34- (a) the good does not qualify as an originating good pursuant to this Chapter; or
- (b) the importer, exporter or producer, as appropriate, fails to provide information which the Party has requested in the course of a verification process under Article 22, or otherwise fails to comply with any of the relevant requirements of this Chapter. 2. In the event preferential tariff treatment is denied, the importing Party shall ensure that its customs administration provides in writing to the exporter, the importer or producer, as the case may be, the reasons for that decision.

Article 24 Refund of Import Duties

str. 341. Where a declaration of origin is not provided at the time of importation of a good from a Party pursuant to Paragraph 1 of Article 16, the importing Party may impose the applied non-preferential import customs duty or require payment of a deposit on that good, where applicable. In such a case, the importer may apply for a refund of any excess import customs duty or deposit paid within one year of the date on which the good was imported, provided that:

- (a) a written declaration that the good presented qualifies as an originating good was provided to the customs administration of the importing Party at the time of importation; and
- (b) a valid declaration of origin or other evidence to substantiate the origin of the goods is provided in relation to the good imported. 2.

str. 35Where a certificate of origin has not been obtained at the time of importation of a good from Hong Kong, China to New Zealand pursuant to Paragraph 2 of Article 16,

CUSTOMS PROCEDURES AND COOPERATION

Article 1 Objectives and Scope

str. 361. The objectives of this Chapter are to:
2. (a) simplify and harmonise customs procedures of the Parties;
3. (b) ensure predictability, consistency and transparency in the application of customs laws and administrative procedures of the Parties;
4. (c) ensure the efficient and expeditious clearance of goods and means of transport;
5. (d) facilitate trade between the Parties; and
6. (e) promote cooperation between the customs administrations, within the scope of this Chapter. 2. This Chapter shall apply, in accordance with the Parties' respective international obligations and domestic customs law, to customs procedures applied to goods traded between the Parties and to the movement of means of transport between the Parties.

Article 2 Definitions

Article 3 Facilitation

str. 371. Each Party shall ensure that its customs procedures and practices are predictable, consistent, transparent and facilitate trade, in accordance with this Chapter. 2. Customs procedures of each Party shall where possible conform to the standards and recommended practices of the World Customs Organization, including those of the International Convention on the Simplification and Harmonization of Customs Procedures (as amended), known as the Revised Kyoto Convention . 3. Customs administrations of the Parties shall facilitate the clearance of goods in administering their customs procedures in accordance with this Chapter.

str. 384. Each customs administration shall provide one or more focal points, electronic or otherwise, through which its traders may submit all information as may be required by the customs administration in respect of the importation of goods.

Article 4 Customs Valuation

str. 38The Parties shall determine the customs value of goods traded between them in accordance with Article VII of GATT 1994 and the Customs Valuation Agreement .

Article 5 Tariff Classification

str. 38Each Party shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between the Parties.

Article 6 Advance Rulings

str. 381. Each customs administration shall provide, in writing, advance rulings in respect of the tariff classification and origin of goods ('advance rulings') to an applicant described in Paragraph 2(a). 2.

str. 39Each Party shall adopt or maintain procedures for advance rulings, which shall:

- (a) provide that an exporter, importer or any person with a justifiable cause may apply for an advance ruling before the importation of the goods in question;
- (b) require that an applicant for an advance ruling provide a detailed description of the goods and all

- relevant information needed to issue an advance ruling; - (c) provide that its customs administration may, at any time during the course of issuing an advance ruling, request that the applicant provide additional information within a specified period;
- (d) provide that any advance ruling be based on the facts and circumstances presented by the applicant, and any other relevant information in the possession of the decision-maker; and
- (e) provide that the ruling be issued to the applicant expeditiously on receipt of all necessary information, and in any case within:
- (i) 60 days with respect to tariff classification; and
- (ii) 150 days with respect to origin. 3. A Party may reject a request for an advance ruling where the additional information requested by its customs administration in accordance with Paragraph 2(c) is not provided within the specified period. 4. Subject to Paragraph 5, each Party shall apply an advance ruling to all importations of goods described in that ruling imported into its Area within a period of at least three years from the date of that ruling. 5. A Party may modify or revoke an advance ruling:
2. (a) upon a determination that the advance ruling was based on an error of fact or law, or the information provided is false or inaccurate;
3.

str. 40(b) if there is a change in domestic law which is consistent with this Agreement; or - (c) if there is a change in a material fact, or circumstances on which the ruling is based. 6. Where an importer claims that the treatment applied to an imported good should be governed by an advance ruling, the customs administration may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances upon which the advance ruling was based.

Article 7 Use of Automated Systems

str. 40The customs administration of each Party shall apply information technology to support customs operations where it is practicable, cost-effective and efficient, particularly in the paperless trading context, including taking into account developments on this issue within the World Customs Organization.

Article 8 Express Consignments

str. 40Each customs administration shall adopt procedures to expedite the clearance of express consignments while maintaining appropriate control, including:

- (a) to provide for pre-arrival processing of information related to express consignments;
- (b) to permit the submission of a single document covering all goods contained in an express consignment, through electronic means if possible; and
- (c) to minimise, to the extent possible, the documentation required for the release of express consignments.

Article 9 Release of Goods

str. 41Each Party shall adopt or maintain procedures which allow goods to be released within 48 hours of arrival, and at the point of arrival without temporary transfer to warehouses or other locations, unless:

- (a) the importer fails to provide any information required by the importing Party at the time of first entry;
- (b) the goods are selected for closer examination by the customs administration of the importing Party through the application of risk management techniques;
- (c) the goods are to be examined by any agency, other than the customs administration of the importing Party, acting under powers conferred by the domestic law of the importing Party; or
- (d) fulfilment of all necessary customs formalities has not been able to be completed or release is otherwise delayed by virtue of force majeure.

Article 10 Risk Management

str. 411. The Parties shall administer customs procedures so as to facilitate the clearance of low-risk goods and focus on high-risk goods. 2. To enhance the flow of goods across their borders, the customs administration of each Party shall regularly review its customs procedures.

Article 11 Review and Appeal 1. Each Party shall provide for the right of review or appeal without penalty in regard to customs administrative rulings, determinations or decisions by the importer, exporter or any other person affected by that administrative ruling, determination or decision.

str. 422. An initial right of review or appeal described in Paragraph 1 may be to an authority within the customs administration or to an independent body; but in any case the domestic law of each Party shall provide for the right of review or appeal without penalty to a judicial authority. 3. Notice of the decision on any review or appeal shall be given to the applicant and the reasons for such decision shall be provided in writing.

Article 12 Customs Cooperation

str. 421. To the extent permitted by their domestic laws, the customs administrations of the Parties shall assist each other by providing information in relation to:

- (a) the implementation and operation of this Chapter and, as appropriate, Chapter 4 (Rules of Origin);
- (b) security of trade between the Parties; and
- (c) such other issues as the Parties mutually determine. 2. Each customs administration shall provide the other customs administration with timely notice of any modification of its customs law or procedures that is likely to substantially affect the operation of this Chapter.

Article 13 Consultations 1. Each customs administration shall designate one or more contact points for the purposes of this Chapter and provide details of such contact points to the other customs administration. Customs administrations of the Parties shall notify each other promptly of any amendments to the details of their contact points.

str. 432. Either customs administration may at any time request consultations with the other customs administration on any matter arising from the operation or implementation of this Chapter. Such consultations shall be conducted through the relevant contact points and shall take place within 30 days of the receipt of the request, unless the customs administrations of the Parties mutually determine otherwise. 3. In the event that such consultations fail to resolve the matter, the requesting Party may refer the matter to the Committee on Trade in Goods for consideration. 4. Customs administrations may consult each other on any trade facilitation issues arising from procedures to secure trade and the movement of means of transport between the Parties. 5. Any action taken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

Article 14 Publication and Enquiry Points

str. 431. Each customs administration shall publish, on the internet or in print form, its customs law and any administrative procedures it applies or enforces.

str. 442. Each customs administration shall designate one or more enquiry points to deal with enquiries from interested persons from either Party on customs matters arising from the implementation of this Agreement, and provide details of such enquiry points to the other customs administration. Customs administrations of the Parties shall notify each other promptly of any amendments to the details of their enquiry points.

Article 15 Review of Customs Procedures

str. 44Each customs administration shall periodically review its customs procedures with a view to their further simplification and the development of mutually beneficial arrangements to facilitate the flow of trade between the Parties.

TRADE REMEDIES

Article 1 General Provisions

str. 451. The Parties agree not to take any trade remedy action pursuant to Article VI of GATT 1994 , the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 , the WTO Agreement on Subsidies and Countervailing Measures , Article XIX of GATT 1994 and the WTO Agreement on Safeguards in an arbitrary or protectionist manner. 2. Each Party shall carry out trade remedy actions in accordance with the principle of procedural fairness and accepted WTO standards of best practice. 3. The Parties agree to carry out trade remedy actions in a transparent manner.

Article 2 Subsidies and Countervailing Measures

str. 451. The Parties agree to prohibit export subsidies 3 on all goods including agricultural products. 2. The Parties maintain their rights and obligations under Article VI of GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures . 3 'Export subsidies' means subsidies as defined by Article 3 of the WTO Agreement on Subsidies and Countervailing Measures and Article 1(e) of the WTO Agreement on Agriculture .

Article 3 Safeguard Measures 1. The Parties maintain their rights and obligations under Article XIX of GATT 1994 and the WTO Agreement on Safeguards .

str. 462. A Party taking any measure pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards shall exclude imports of an originating good from the other Party from the action if such imports do not in and of themselves cause or threaten to cause serious injury. 3. Each Party shall promptly advise the contact point of the other Party of the initiation of any global safeguard investigation and the reasons for initiation.

Article 4 Anti-Dumping Measures

str. 461. The Parties maintain their rights and obligations under Article VI of GATT 1994 and the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 . 2. Pursuant to Article 5(5) of the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 , a Party that has received a properly documented application from an industry in its Area for the initiation of an anti-dumping investigation in respect of products from the other Party shall, as soon as possible but no later than seven days following receipt, give written notice to the other Party through the contact point designated pursuant to Article 5.

Article 5 Consultations 1. Each Party shall designate one or more contact points for the purposes of this Chapter and provide details of such contact points to the other Party. The Parties shall notify each other promptly of any amendments to the details of their contact points.

str. 472. A Party may at any time request consultations with the other Party on any matter arising from the operation or implementation of this Chapter. Such consultations shall be conducted through the relevant contact points and shall take place within 30 days of the receipt of the request, unless the Parties mutually determine otherwise. 3. Any action taken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

SANITARY AND PHYTOSANITARY MEASURES

Article 1 Objectives

str. 48The objectives of this Chapter are to:

- (a) uphold and enhance implementation of the SPS Agreement and applicable international standards, guidelines and recommendations developed by the Codex Alimentarius Commission ('Codex'), the World Organisation for Animal Health ('OIE') and under the framework of the International Plant Protection Convention ('IPPC');
- (b) facilitate trade between the Parties through establishing a mechanism to address, and where possible resolve, market access matters while protecting human, animal or plant life or health in the Areas of the Parties;
- (c) provide a means to improve communication, consultation and cooperation between the Parties on sanitary and phytosanitary matters; and
- (d) strengthen collaboration between the Parties in relevant international bodies that develop international standards, guidelines and recommendations relevant to the matters covered by this Chapter.

Article 2 Scope

str. 48This Chapter shall apply to all sanitary or phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.

Article 3 Definitions

Article 4 International Obligations

str. 49Nothing in this Chapter or any Implementing Arrangements shall limit the rights or obligations of the Parties pursuant to the SPS Agreement .

Article 5 Competent Authorities and Contact Points

str. 491. The competent authorities of the Parties are those authorities that are responsible for the implementation of matters within the scope of this Chapter, as identified in the first Implementing Arrangement to be known as 'Implementing Arrangement 1'.

str. 502. At the request of either Party, competent authorities of the Parties shall jointly consider any matters relating to the implementation of this Chapter, including:

- (a) establishing technical working groups to identify and address relevant technical and scientific issues;
- (b) initiating, developing, adopting, reviewing and modifying Implementing Arrangements on technical matters which give practical effect to the provisions of this Chapter in order to facilitate trade between the Parties;
- (c) establishing, monitoring and reviewing work plans which contribute to achieving the objectives of this Chapter; and
- (d) reporting, as required, to the Joint Commission on their activities within the scope of this Chapter. 3. Each Party shall designate a contact point for its competent authorities, which shall be set out in Implementing Arrangement 1. 4. When the competent authorities need to consider any matters relating to the implementation of this Chapter as provided for in Paragraph 2, such consideration may be carried out in person or via teleconference, video-conference or any other means mutually determined by the Parties. The competent authorities may also address issues through correspondence, including via electronic communication. 5. The Parties shall inform each other of any significant changes in the structure, organisation and division of responsibility within its competent authorities.

Article 6 Implementing Arrangements 1. Consistent with Paragraph 2(b) of Article 5, the Implementing Arrangements shall set out understandings reached, including in relation to competent authorities, contact points, equivalence, adaptation to regional conditions and verification as provided for in Articles 5, 7, 8 and 9.

str. 512. Where Implementing Arrangements have been adopted, they shall be applied to trade between the Parties. 3. Each Party responsible for the implementation of an Implementing Arrangement shall take all necessary actions to do so within a reasonable period of time as mutually determined by the Parties.

Article 7 Equivalence

str. 511. The Parties may make determinations of equivalence consistent with the SPS Agreement and in particular Article 4 of the SPS Agreement which provides for the recognition of sanitary or phytosanitary measures as equivalent where the exporting Party objectively demonstrates to the importing Party that its measures achieve the importing Party's appropriate level of sanitary or phytosanitary protection. The determination of equivalence may be in relation to an individual measure and/or group of measures and/or systems applicable to a sector or part of a sector. 2. The Parties may agree the principles and procedures applicable to the determinations of equivalence made in accordance with Paragraph 1, and any such agreed principles and procedures shall be recorded in an Implementing Arrangement. 3. Any determination of equivalence shall be recorded in an Implementing Arrangement.

Article 8 Adaptation to Regional Conditions

str. 521. The Parties may make determinations in relation to regionalisation, pest-free areas, areas of low pest prevalence, zoning and compartmentalisation consistent with the SPS Agreement , and in particular Article 6 of the SPS Agreement . Such determinations shall be consistent with relevant OIE and IPPC standards which provide, inter alia , for the recognition of pest-free areas or areas of low pest prevalence where the exporting Party objectively demonstrates to the importing Party that such areas are, and are likely to remain, pest-free areas or areas of low pest prevalence. These determinations may be made at various levels, including farms and processing establishments, which have appropriate sanitary or phytosanitary measures in place. 2. The Parties may agree the principles and procedures applicable to the determinations regarding adaptation to regional conditions made in accordance with Paragraph 1, and any such agreed principles and procedures shall be recorded in an Implementing Arrangement. 3. Any determinations in relation to regionalisation, pest-free areas, areas of low pest prevalence, zoning and compartmentalisation shall be recorded in an Implementing Arrangement.

Article 9 Verification

str. 521. In order to maintain confidence in the effective implementation of this Chapter, each Party may carry out verification and audit of the exporting Party's system of regulating compliance with sanitary and phytosanitary requirements applicable to the trade. Such verification and audit procedures shall be risk-based and proportionate to the record of compliance.

str. 53Verification and audit may include

reviews of the exporting Party's sanitary and phytosanitary system, on-site visits to a sample of establishments and/or verification of a proportion of imports from the exporting Party.

str. 532. The Parties may agree the principles and guidelines applicable to any verification or audit, taking account of the relevant domestic law of the exporting Party. Any such agreed principles and guidelines shall be recorded in an Implementing Arrangement.

Article 10 Emergency Measures

str. 53A Party may, on serious human, animal or plant life or health grounds, take emergency measures necessary for the protection of human, animal or plant life or health. Within 24 hours of a Party taking any emergency measures, such measures shall be notified to the contact point of the other Party. On request of either Party, consultations between the competent authorities regarding the situation shall be held within eight days of receipt of the request by the contact point, unless otherwise agreed by the Parties. The Parties shall take due account of any information provided through such consultations.

Article 11 Notification

str. 531. The Parties shall notify each other in a timely and appropriate manner in writing through the contact points of any significant food safety issue or change in animal health, plant health or pest status in their Area that is relevant to existing trade. 2. Where one Party notifies the other Party of non-compliance of imported consignments with sanitary or phytosanitary measures, the Parties shall cooperate as follows, drawing on the guidelines of relevant international organisations where available:

- (a) where significant non-compliance with sanitary or phytosanitary measures arises, the importing Party shall notify as soon as possible the exporting Party of the consignment details; and
- (b) the Parties should consult to ensure that appropriate remedial actions are undertaken by the Parties to address the area of non-compliance. 3. Unless specifically required by its domestic law or policies, the importing Party shall avoid suspending trade based on one non-compliant consignment and should contact the exporting Party to ascertain how the non-compliance has occurred.

Article 12 Explanation of Measures

str. 541. Where a Party considers that a sanitary or phytosanitary measure is affecting its trade with the other Party, it may, through the contact points, request a detailed explanation of the sanitary or phytosanitary measure including information on the technical justification for the measure. The other Party shall respond promptly to any requests for such explanations. 2. Either Party may request consultations with the other Party in relation to the same matter for which an explanation has been provided pursuant to Paragraph 1, and such consultations shall be held as soon as practicable.

Article 13 Cooperation

str. 54The Parties may explore opportunities for further cooperation, collaboration and information exchange on sanitary or phytosanitary matters of mutual interest consistent with this Chapter, including in relevant international standard-setting bodies.

Article 14 Consultations

str. 55Any requests for consultations or consultations held pursuant to Articles 10, 11 or 12 shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

TECHNICAL BARRIERS TO TRADE

Article 1 Objectives

str. 56The objectives of this Chapter are to:

- (a) increase and facilitate trade through furthering the implementation of the TBT Agreement and building on the work of APEC on standards and conformance;
- (b) promote information exchange and strengthen regulatory cooperation to:
- (i) enhance mutual understanding of each Party's standards, technical regulations and conformity assessment procedures;
- (ii) enable cooperation between the Parties in relation to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures; and
- (iii) manage risks to health, safety and the environment as a means of supporting trade facilitation;
- (c) eliminate unnecessary technical barriers to trade in goods between the Parties and reduce, where possible, unnecessary transaction costs associated with trade between the Parties;
- (d) strengthen cooperation between the Parties in the work of international bodies related to standardisation and conformity assessments; and

str. 57- (e) provide a framework to implement supporting mechanisms to realise these objectives.

Article 2 Scope

str. 571. This Chapter applies to all standards, technical regulations and conformity assessment procedures of the Parties that may directly or indirectly affect the trade in goods between the Parties, except as provided in Paragraphs 3 and 4. 2. This Chapter applies to all goods traded between the Parties, regardless of the origin of the goods. 3. This Chapter does not apply to purchasing specifications used in government procurement, which shall be subject to the provisions of Chapter 12 (Government Procurement) to the extent they apply. 4. This Chapter does not apply to sanitary and phytosanitary measures which are covered by Chapter 7 (Sanitary and Phytosanitary Measures).

Article 3 Definitions

Article 4 Affirmation of the TBT Agreement

str. 581. The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement . 2. Nothing in this Chapter shall prevent a Party from preparing, adopting or applying, in accordance with its rights and obligations under the TBT Agreement , technical regulations which are not more trade restrictive than necessary to fulfil a legitimate objective, taking into account the risks that non-fulfilment would create. Such legitimate objectives are, inter alia , national security requirements, the prevention of deceptive practices, the protection of human health or safety, animal or plant life or health, or the environment.

Article 5 International Standards

str. 581. The Parties shall use relevant international standards, guides or recommendations, or the relevant parts of them, to the extent provided in Articles 2 and 5 and Annex 3 of the TBT Agreement , as a basis for their technical regulations and related conformity assessment procedures, except when such international standards, guides or recommendations or their relevant parts would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued.

str. 592. In determining whether an international standard, guide or recommendation as mentioned in Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall base its determination on the principles set out in relevant Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade since 1 January 1995. 3. The Parties shall cooperate with each other, where appropriate, in the context of their participation in international standardising bodies, with a view to developing international standards that facilitate trade and do not create unnecessary obstacles to international trade.

Article 6 Equivalence of Technical Regulations

str. 591. Consistent with the TBT Agreement , each Party shall give positive consideration to accepting as equivalent technical regulations of the other Party, even if these regulations differ from its own, provided that it is satisfied that these regulations adequately fulfil the objectives of its own regulations. 2. A Party shall, at the request of the other Party, explain the reasons why it has not accepted a technical regulation of the other Party as equivalent. 3. Each Party shall give positive consideration to a request by the other Party to negotiate and conclude arrangements for achieving the equivalence of technical regulations as mentioned in Paragraph 1. Where a Party declines such a request, it shall, at the request of the other Party, give its reasons for doing so.

Article 7

Conformity Assessment Procedures

str. 601. The Parties shall seek to use, on a case by case basis, a broad range of mechanisms to facilitate the acceptance of conformity assessment procedures conducted in the Area of the other Party, including:
2. (a) promoting recognition of cooperative arrangements between accreditation agencies located in each other's Area;
3. (b) implementing unilateral recognition by one Party of the results of conformity assessments performed in the other Party's Area;
4. (c) implementing mutual recognition of conformity assessment procedures conducted by bodies located in the respective Areas of the Parties;
5. (d) recognising accreditation procedures of the other Party for qualifying conformity assessment bodies in that Party's Area;
6. (e) recognising the other Party's designation of conformity assessment bodies;
7. (f) utilising relevant regional and international multilateral recognition agreements and arrangements; and
8. (g) accepting the declaration of conformity by a supplier in the other Party's Area. 2. The Parties shall intensify their exchange of information on the mechanisms set out in Paragraph 1 and similar mechanisms with a view to facilitating the acceptance of conformity assessment procedures and results.

str. 613. The Parties shall seek to ensure that conformity assessment procedures applied between them facilitate trade by ensuring that they are no more restrictive than is necessary to provide the importing Party with adequate confidence that products conform with the applicable technical regulations, taking into account the risk that non-conformity would create. 4. A Party may accredit or otherwise recognise conformity assessment bodies in the Area of the other Party. The terms of accreditation or recognition shall be no less favourable than those it accords to conformity assessment bodies in its Area. If a Party accredits or otherwise recognises a body assessing conformity with a particular technical regulation or standard and that Party refuses to accredit or otherwise recognise a body of the other Party assessing conformity with that technical regulation or standard, it shall, at the request of the other Party, give the reasons for its refusal. 5. To enhance confidence in the continued reliability of each other's conformity assessment results, the Parties may consult, as appropriate, on matters such as the technical competence of conformity assessment bodies in the other Party. 6. A Party shall, at the request of the other Party, give the reasons why it has not accepted the results of any conformity assessment procedure performed in the Area of the other Party. 7. Each Party shall give positive consideration to a request by the other Party to negotiate and conclude arrangements to facilitate recognition of the results of conformity assessment procedures conducted by bodies located in the other Party. Where a Party declines such a request, it shall, at the request of the other Party, give its reasons for doing so.

Article 8

Cooperation for Regulatory Effectiveness

str. 621. Recognising the important relationship between good regulatory practices and trade facilitation, the Parties shall cooperate in the areas of standards, technical regulations and conformity assessment, on a case by case basis, including to:
2. (a) promote good regulatory practice based on risk management principles;
3. (b) improve the quality and effectiveness of their technical regulations;
4. (c) develop joint initiatives for managing risks to health, safety and the environment; and
5. (d) build understanding and capacity to promote better regulatory compliance. 2. The Parties shall implement this Article by establishing work programmes under Article 10 to, inter alia :
7. (a) exchange information on, inter alia :
8. (i) regulatory systems;
9. (ii) incident analysis;
10. (iii) hazard alerts;
11. (iv) product bans and recalls; and
12. (v) procedures, strategies and programmes for product surveillance activities; and
13. (b) cooperate as mutually determined, on, inter alia :

str. 63- (i) the development of technical regulations;
- (ii) regulatory reviews and implementation; and
- (iii) the development and implementation of risk management principles, including product monitoring, safety, compliance and enforcement procedures.

Article 9 Transparency

str. 631. In order to enhance the opportunity for the other Party and interested persons of the other Party to provide meaningful comments on a proposal to introduce a particular technical regulation or conformity assessment procedure, a Party publishing a notice under Article 2(9) or 5(6) of the TBT Agreement shall:

- (a) include in the notice a statement describing the objective of the proposal and the rationale for the approach that Party is proposing; and
- (b) transmit the notice via electronic communication to the other Party through its enquiry point established under Article 10 of the TBT Agreement at the same time as it notifies WTO members of the proposal pursuant to the TBT Agreement . 2. Each Party shall allow at least 60 days from the transmission of the notification under Paragraph 1(b) for the other Party and interested persons of the other Party to make written comments on the proposal. 3. Where a Party makes a notification under Article 2(10) or 5(7) of the TBT Agreement , it shall at the same time transmit that notification via electronic communication to the other Party through its enquiry point established under Article 10 of the TBT Agreement .

str. 644. Where goods are covered by an Annex or an implementing arrangement to which Article 11 applies and a Party takes a measure to manage an immediate risk that it considers those goods may pose to health, safety or the environment, it shall notify immediately the other Party, through the contact point designated under Article 10 of the measure and the reasons for the imposition of the measure. 5. A Party shall, at the request of the other Party, provide information regarding the objective of, and rationale for, a standard, technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.

Article 10 Implementation

str. 641. Each Party shall designate a contact point which shall have responsibility to work collaboratively with the contact point of the other Party to:

- (a) coordinate participation in work programmes with persons and organisations in their respective Areas that have responsibility for accreditation of conformity assessment bodies or relevant technical regulations;
- (b) ensure appropriate steps are taken to address any issue that the other Party may raise related to the development, adoption, application or enforcement of technical regulations and conformity assessment procedures;
- (c) enhance mutual cooperation in the development and improvement of technical regulations and conformity assessment procedures;
- (d) facilitate, where appropriate, sectoral cooperation among governmental and non-governmental regulatory authorities, accreditation agencies and conformity assessment bodies in the Parties' Areas;

- (e) exchange information, where appropriate, on developments in non-governmental, regional and multilateral fora engaged in activities related to standardisation, technical regulations and conformity assessment procedures; and
- (f) take any other steps the Parties consider will assist them in implementing the TBT Agreement , implementing this Chapter and in facilitating trade in goods between them. 2. Each Party shall provide the other Party with the name of the designated organisation that shall be its contact point and the contact details of relevant officials in that organisation, including telephone, facsimile, email and other relevant details. 3. Each Party shall notify the other Party promptly of any change in its contact point or any amendments to the details of the relevant officials. 4. The Parties shall establish a Committee on Technical Barriers to Trade ('TBT Committee') consisting of officials from the contact points and any other representatives of the Parties to promote and monitor the implementation and administration of this Chapter. The TBT Committee shall meet within one year of entry into force of this Agreement and thereafter once every two years or as otherwise mutually determined by the Parties. Meetings may be conducted in person or via teleconference, video-conference or any other means mutually determined by the Parties. The TBT Committee may also address issues through correspondence, including via electronic communication. 5. The functions of the TBT Committee shall include to:

str. 66- (a) identify and agree priority sectors and areas for enhanced cooperation, including giving due consideration to any sector-specific proposal made by either Party;
- (b) where priority sectors or areas have been agreed, establish work programmes with clear targets, design structures and timelines;
- (c) monitor the progress of work programmes established under subparagraph (b);
- (d) consult with a view to resolving any matter arising under this Chapter, in accordance with Article 12;
- (e) review this Chapter in light of any developments in relation to the TBT Agreement , and develop recommendations to the Joint Commission for amendments to this Chapter in light of those developments; and
- (f) report to the Joint Commission on the implementation of this Chapter, as it considers appropriate. 6. The Parties shall ensure, to the extent possible, that the persons and organisations in their respective Areas that have responsibility for relevant accreditation of conformity assessment bodies or relevant technical regulations participate in work programmes and technical consultations where the TBT Committee has:

- (a) established a work programme under Paragraph 5(b); or
- (b) been requested to undertake technical consultations under Article 12.

Article 11

Agreements or Arrangements

str. 671. The Parties shall seek to identify trade-facilitating initiatives regarding standards, technical regulations and conformity assessment procedures, including those that are appropriate for particular issues or sectors. Such initiatives may include:
2. (a) agreements or arrangements on regulatory issues, such as alignment of standards, convergence or equivalence of technical regulations, conformity assessment procedures and compliance issues; and
3. (b) the use of asymmetrical approaches, where appropriate. 2. The Parties may conclude Annexes to this Chapter setting out agreed principles and procedures relating to technical regulations and conformity assessments applicable to goods traded between them. 3. The Parties may conclude implementing arrangements setting out:
6. (a) details for the implementation of the Annexes to this Chapter; or
7. (b) arrangements resulting from work programmes established under Article 10. 4. The Parties shall take into account any existing bilateral, regional and multilateral arrangements concerning technical regulations and conformity assessment procedures that both Parties participate in when developing Annexes and implementing arrangements.

str. 685. The Parties agree to maintain a programme of ongoing review and enhancement of Annexes and implementing arrangements.

Article 12 Technical Consultations

str. 681. Either Party may request technical consultations with the other Party with the aim of resolving any matter arising under this Chapter. Unless the Parties mutually determine otherwise, the Parties shall hold technical consultations within 60 days from the request for technical consultations. The technical consultations may be conducted in person or via email, teleconference, video-conference or any other means mutually determined by the Parties. 2. Where either Party has requested technical consultations pursuant to Paragraph 1, the other Party shall:

- (a) investigate the issues that gave rise to the request for consultations including whether there are any irregularities in the implementation of its technical regulations or conformity assessment procedures;
- (b) give positive consideration to any request to address any irregularities identified under subparagraph (a); and
- (c) report back to the other Party on the outcome of its investigations, stating its reasons. 3. Technical consultations may be referred to the TBT Committee by either Party for further consideration. 4. Any action taken pursuant to this Article and consultations held pursuant to Paragraph 5(d) of Article 10 shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

COMPETITION

Article 1 Objectives

str. 69The Parties recognise the strategic importance of promoting open and competitive markets through the effective application of competition policies for the purposes of enhancing trade and investment, economic efficiency and consumer welfare.

Article 2 Promotion of Competition

str. 691. Desiring to promote policy coherence and an integrated approach to trade and competition and endorsing the APEC Principles to Enhance Competition and Regulatory Reform , the Parties agree to promote competition and endeavour to ensure that the design of trade and competition policies and the implementation of domestic law gives due recognition to the effects on competition by:

- (a) providing transparency in policies, laws and rules, and their implementation;
- (b) applying competition policies to economic activities, including public and private business activities, in a manner that does not discriminate between or among economic entities in like circumstances;
- (c) maintaining a high-level government commitment to promote competition and enhance economic efficiency, including through assessments of regulatory impacts or other appropriate means;
- (d) setting out clear responsibilities within their respective administrations for promoting and identifying the competition and efficiency dimensions in the development of policies and rules, and their implementation;

- (e) promoting coherent and effective implementation of trade and competition policies within their respective Areas; and
- (f) fostering appropriate cooperation between trade and competition officials. 2. The Parties recognise that the implementation of Paragraph 1 may be subject to the different circumstances of the Parties and the different policy approaches that arise from these circumstances.

Article 3 Exemptions and Exceptions

str. 70The Parties recognise that exemptions and exceptions from their respective competition regimes may be necessary to achieve other legitimate policy objectives. The Parties shall endeavour to identify and review these exemptions and exceptions to ensure that each is no broader than necessary to achieve a legitimate policy objective, and implemented in a transparent way that minimises distortions to fair and free competition.

Article 4 Cooperation and Exchange of Information

str. 701. The Parties agree to cooperate and coordinate in the area of competition policy by exchanging information on the development of competition policy. 2.

str. 71Where the Parties have set up their respective regulatory authorities responsible for competition law, the Parties shall encourage their respective regulatory authorities to cooperate in the area of competition law, including through

technical assistance as appropriate, consultation and exchanges of information, as permitted by the domestic law and overall policy of each Party and within the scope of the responsibilities of each regulatory authority.

Article 5 Consultations

str. 71At the request of either Party, the Parties shall consult on particular anti-competitive practices adversely affecting trade or investment between the Parties, consistent with the objectives of this Chapter.

Article 6 Non-Application of Dispute Settlement

str. 71Neither Party shall have recourse to any dispute settlement procedures under this Agreement in respect of any issue arising from or relating to this Chapter.

ELECTRONIC COMMERCE

Article 1

Objectives

str. 72The objectives of this Chapter are to:

- (a) avoid restrictions to trade between the Parties being introduced as a result of the use of electronic commerce ('E-commerce') transactions;
- (b) minimise the extent to which E-commerce transactions are subject to particular requirements, tariffs or other limitations or costs which are additional to other transactions;
- (c) encourage where possible the treatment of E-commerce transactions by the Parties as equivalent to corresponding paper transactions; and
- (d) promote the use of E-commerce to assist the timeliness and reduce the cost of commercial transactions.

Article 2 Promotion of E-Commerce

str. 721. The Parties agree to:
2. (a) cooperate in promoting with respect to the use of E-commerce:
3.

str. 73(i) the maintenance of an open trading environment for the free flow of information and services; - (ii) the minimisation of transaction costs for business;
- (iii) the international alignment of laws;
- (iv) effective regulatory coordination; and
- (v) interoperability of infrastructures, such as secure electronic authentication and payments;
- (b) promote the efficient functioning of E-commerce domestically and internationally by, wherever possible, developing domestic regulatory frameworks which are open, avoiding undue restrictions and costs on E-commerce and, as appropriate, ensuring that relevant processes are compatible with evolving international norms and practices;
- (c) ensure a predictable and simple legal environment for E-commerce, taking into account the UNCITRAL Model Law on Electronic Commerce 1996 and other model law(s) on E-commerce as may be adopted or revised by UNCITRAL or other such international organisations from time to time, that supports the maintenance of a secure infrastructure, enables public key infrastructure solutions to develop, and includes laws to facilitate the use of electronic methods in meeting statutory requirements;
- (d) ensure that regulations and the development of regulations affecting E-commerce are transparent;
- (e) endeavour to ensure that policy responses in respect of E-commerce:
- (i) are flexible and take account of developments in a rapidly changing technology environment; and

Article 3 E-Government Initiatives

str. 74The Parties agree that E-government initiatives should seek to:

- (a) reduce compliance costs and enhance the general level of transparency of government regulations;

-

str. 75- (b) deliver efficiency in administration (for example, paperless trading); and
- (c) reduce technical barriers to trade.

Article 4 Consultations

str. 75At the request of either Party, the Parties agree to consult each other concerning:

- (a) the development of policy for the conduct of E-commerce; and
- (b) any policies or decisions which may impact adversely on E-commerce aspects of trade between the Parties.

Article 5 Non-Application of Dispute Settlement

str. 75Neither Party shall have recourse to any dispute settlement procedures under this Agreement in respect of any issue arising from or relating to this Chapter .

INTELLECTUAL PROPERTY

Article 1

Objectives

str. 76The objectives of this Chapter are to:

- (a) promote the importance of intellectual property rights in fostering trade in goods and services, innovation, and economic, social and cultural development;
- (b) promote the effective protection, enforcement and maintenance of intellectual property rights;
- (c) recognise the need to achieve a fair balance between the rights of intellectual property right holders, the legitimate interests of users and the wider interest of the public with regard to the protected subject matter; and
- (d) uphold commitments to combating the infringement of intellectual property rights that occurs through the pirating of copyright works and counterfeiting of trademarks.

Article 2

Definitions

Article 3 General Provisions

str. 771. Each Party reaffirms its commitment to abide by the TRIPS Agreement and any other multilateral agreement relating to intellectual property which are applicable to both Parties. 2. Each Party shall ensure that it maintains an effective legal framework that gives effect to the rights and obligations applicable to it under the TRIPS Agreement , and includes clearly defined rights and obligations that provide certainty over the protection and enforcement of intellectual property rights to holders of intellectual property rights and users of intellectual property. 3. Subject to the international obligations that are applicable to each Party, the Parties affirm that each Party may:

- (a) provide for the international exhaustion of intellectual property rights;
- (b) establish that provisions in non-negotiated standard form end-user licence agreements for goods and services 4 do not prevent consumers from exercising the limitations and exceptions recognised in domestic intellectual property laws; and
- (c) establish provisions to facilitate the exercise of permitted acts where technological protection measures have been applied. 4 This does not include compulsory licensing agreements.

str. 784. Each Party shall also maintain transparent regulations, efficient and non-discriminatory enforcement mechanisms, and access to expeditious remedies, in accordance with the obligations applicable to each Party under the TRIPS Agreement . 5. In line with the obligations applicable to each Party under the TRIPS Agreement , each Party shall maintain an effective framework for the enforcement of intellectual property rights, including through:

- (a) the provision of fair and equitable civil judicial procedures for private enforcement of those rights;
- (b) the enforcement of criminal laws relating to wilful activities in respect of copyright piracy and trademark counterfeiting on a commercial scale; and
- (c) the provision of effective border control measures and procedures for right holders. 6. All issues pertaining to intellectual property rights in this Agreement shall be interpreted and applied consistent with the object and purpose of this Chapter, unless the context otherwise requires.

Article 4 Contact Points

str. 78Each Party shall designate a contact point to facilitate communications between the Parties on any matter covered by this Chapter, and shall provide details of such contact point to the other Party. The Parties shall notify each other promptly of any amendments to the details of their contact points.

Article 5 Exchange of Information

str. 791. Each Party shall, on request of the other Party and subject to its domestic law, provide information relating to:
2. (a) any new laws that enter into effect in relation to intellectual property;
3. (b) changes to, and developments in, the implementation of intellectual property systems, aimed at promoting effective and efficient registration or grant of intellectual property rights; and
4. (c) developments in intellectual property rights enforcement. 2. Any information provided under this Article shall be conveyed through the contact points referred to in Article 4.

Article 6

Cooperation

str. 791. Subject to their respective domestic laws and policies, the Parties agree to cooperate, as set out in this Article, with a view to eliminating trade in goods infringing intellectual property rights and ensuring that the enforcement of intellectual property rights does not itself become a barrier to legitimate trade. 2. The Parties shall endeavour to facilitate the development of contacts and cooperation between their respective government agencies, educational institutions, and other organisations with an interest in the field of intellectual property rights. 3.

str. 80Each Party shall, on request of the other Party, give due consideration to any specific cooperation proposal made bythe other Party relating to the protection or enforcement of intellectual property rights. 4. Any proposal for cooperation shall be conveyed through the contact points referred to in Article 4.

Article 7 Business Facilitation

str. 80Each Party shall endeavour to reduce transaction costs associated with the implementation of its intellectual property regime, where practicable and taking into account local conditions and developments in the international community.

Article 8 Genetic Resources, Traditional Knowledge and Folklore

str. 80Subject to the international obligations that are applicable to each Party, each Party may establish appropriate measures to protect genetic resources, traditional knowledge and traditional cultural expressions or folklore.

Article 9 Consultations

str. 801. Either Party may at any time request consultations with the other Party with a view to seeking a timely and mutually satisfactory resolution in relation to any intellectual property issue, including enforcement, within the scope of this Chapter. 2. Such consultations shall be conducted through the contact points referred to in Article 4 and shall commence within 60 days of the receipt of the request for consultations, unless the Parties mutually determine otherwise. In the event that consultations fail to resolve any such issue, the requesting Party may refer the issue to the Joint Commission for consideration.

str. 813. Any action taken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

GOVERNMENT PROCUREMENT

Article 1

Objectives

str. 82The Parties recognise the importance of conducting government procurement in accordance with the fundamental principles of the APEC Non-Binding Principles on Government Procurement of transparency, value for money, open and effective competition, fair dealing, accountability and due process, and non-discrimination, in order to facilitate competitive opportunities for suppliers of the Parties.

Article 2

Scope and Coverage

str. 821. This Chapter shall apply to government procurement measures regarding procurement, by any contractual means, including purchase, hire purchase, rental or lease, with or without an option to buy, build-operate-transfer contracts and public works concessions contracts:
2. (a) by entities listed in Annex I;
3. (b) in which the contract has a value not less than the relevant threshold converted into respective currencies as set out in Annex II estimated at the time of, or within a reasonable time prior to, the publication of a notice in accordance with Article 10; and

-

str. 83(c) subject to any other conditions specified in Annex I 5 . 2. This Chapter shall not apply to:

- (a) the purchase or acquisition of goods and services by an entity of a Party from another entity of that Party, except where tenders are called, in which case this Chapter shall apply;
- (b) procurement of goods and services (including construction) outside the Area of the procuring Party for consumption outside the Area of the procuring Party;
- (c) non-contractual agreements or any form of assistance to persons or governmental authorities, including cooperative agreements, sponsorship arrangements, grants, loans, subsidies, equity infusions, guarantees, fiscal incentives and governmental provision of goods and services;
- (d) procurement conducted:
- (i) for the specific purpose of providing international assistance, including development aid;
- (ii) under the particular procedure or condition of an international agreement relating to the stationing of troops or relating to the joint implementation of a project where that international agreement applies to a Party; or

5 For greater certainty, nothing in this Chapter shall have the effect of obliging either Party to permit the supply of services in relation to government procurement covered by this Chapter in a manner that is inconsistent with that Party's Schedules to Annexes I and II to Chapter 13 (Trade in Services) and Annex I to Chapter 14 (Movement of Business Persons).

str. 84- (iii) under the particular procedure or condition of an international organisation, or funded by international grants, loans, or other assistance where the applicable procedure or conditions would be inconsistent with this Chapter;
- (e) the procurement or acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;
- (f) hiring of government employees and related employment measures; or
- (g) any procurement by an entity on behalf of an organisation that is not an entity. 3. Entities of each Party shall not prepare, design or otherwise structure or divide, at any stage of the procurement, any procurement in order to avoid the obligations of this Chapter. 4. In calculating the value of contracts for the purposes of implementing this Chapter, entities shall base their valuation on the estimated maximum total value of the procurement over its entire duration, including optional purchases, premiums, fees, commissions, interest or other forms of remuneration provided for in such contracts. For term contracts, the value of contracts may be taken as the estimated value of works in a 12 month period.

Article 3 Definitions

str. 84For the purposes of this Chapter:

str. 86- (i) supplier means a natural or juridical person of a Party that provides or could provide goods or services to an entity; and
- (j) technical specification means a tendering requirement that:
- (i) sets out the characteristics of:
- (1) goods to be procured, such as quality, performance, safety and dimensions, or the processes and methods for their production; or
- (2) services to be procured, or the processes and methods for their provision;
- (ii) addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service; or
- (iii) sets out conformity assessment procedures prescribed by an entity.

Article 4 Exceptions to this Chapter

str. 861. Nothing in this Chapter shall be construed to prevent either Party from taking any action or not disclosing any information which it considers necessary for the protection of its essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes. 2.

str. 87Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail or a disguised restriction

on trade between the Parties, nothing in this Chapter shall be construed to prevent either Party from adopting or maintaining measures:

str. 87- (a) necessary to protect public morals, order or safety;
- (b) necessary to protect human, animal or plant life or health;
- (c) necessary to protect intellectual property; or
- (d) relating to goods or services of persons with disabilities, of philanthropic institutions, or of prison labour. 3. The Parties understand that Paragraph 2(b) includes environmental measures necessary to protect human, animal or plant life or health.

Article 5 National Treatment and Non-Discrimination

str. 871. With respect to any government procurement measure regarding procurement covered by this Chapter, each Party shall grant to goods, services and suppliers of the other Party treatment no less favourable than that accorded by it to domestic goods, services and suppliers. 2. With respect to any government procurement measure regarding procurement covered by this Chapter, neither Party shall allow its entities to:

- (a) treat a locally established supplier less favourably than another locally established supplier on the basis of the degree of foreign affiliation to, or ownership by a person of, the other Party; or
- (b) discriminate against a locally established supplier on the basis that the goods or services offered by that supplier are goods or services of the other Party. 3. For the purposes of this Chapter, Article XVI(1) of the WTO Agreement on Government Procurement , including its footnote, is incorporated into and made part of this Chapter, mutatis mutandis . 4. This Article shall not apply to measures concerning customs duties and charges of any kind imposed on or in connection with importation, the method of levying such customs duties and charges, other import regulations, or to measures affecting trade in services other than government procurement measures specifically governing procurement covered by this Chapter.

Article 6 Rules of Origin

str. 88For procurement covered by this Chapter, each Party shall not apply rules of origin to goods or services imported from or supplied by the other Party that are different from the rules of origin the Party applies at the same time in the normal course of trade to imports or supplies of the same goods or services from the other Party.

Article 7 Non-Disclosure of Information

str. 881. The Parties, their entities and review authorities shall not, except to the extent required by law, disclose confidential information that would prejudice legitimate commercial interests of a particular supplier or that might prejudice fair competition between suppliers without the written authorisation of the supplier that provided the information. 2. Nothing in this Chapter shall be construed as requiring either Party, its entities or review authorities to disclose confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest.

Article 8 Publication of Information on Procurement

str. 89Each Party shall promptly publish:

- (a) its government procurement measures covered by this Chapter; and
- (b) any modifications to such government procurement measures, where possible in the same manner as the original publication.

Article 9 Procurement Procedures

str. 89Except as provided for in Article 15, entities shall award contracts by means of open or selective tendering procedures, in the course of which all interested suppliers or, in the case of selective tendering, suppliers invited to do so by an entity may submit a tender.

Article 10 Notice of Intended Procurement

str. 891. Except as provided for in Article 15, for each procurement covered by this Chapter, entities shall publish in advance a notice of intended procurement inviting interested suppliers to submit a tender or apply to meet conditions for participation in the procurement. 2. The notice of intended procurement shall be published through means that are widely disseminated and afford non-discriminatory access to interested suppliers. Such notices shall remain readily accessible, through a single electronic point of access specified in Annex III, free of charge for the entire period established for tendering.

str. 903. Each notice of intended procurement shall include:
2. (a) a description of the intended procurement;
3. (b) any conditions that suppliers must fulfil to participate in the procurement;
4. (c) the time limits for submission of tenders or applications to participate; and
5. (d) contact details for obtaining all relevant documents. 4. Each notice of intended procurement shall be published sufficiently in advance to provide interested suppliers with a reasonable period of time, in light of the nature, circumstances and complexity of the procurement, to obtain the full tender documentation and to prepare and submit responsive tenders by the closing date, or to apply for participation in the procurement where applicable. 5. The Parties agree that entities shall in no case provide less than ten days between the date on which the notice of intended procurement is published and the final date for the submission of tenders or applications to participate.

Article 11 Conditions for Participation

str. 901. Where an entity requires suppliers to register, qualify, or satisfy any other conditions before being permitted to participate in a procurement, each Party shall ensure that a notice is published inviting suppliers to apply for registration or qualification or to demonstrate satisfaction of other conditions for participation. 2.

str. 91The notice shall be published sufficiently in advance for interested suppliers to prepare and submit responsive

applications and for the entity to evaluate and make its determinations based on such applications.

str. 913. Any conditions for participation in the procurement, including the legal, commercial, technical and financial capacity of suppliers, as well as the verification of qualifications, shall be limited to those which are essential to ensure the supplier's capability to fulfil the contract in question. 4. The commercial, technical and financial capacity of a supplier shall be judged on the basis of both that supplier's global business activity and its activity in the Area of the procuring entity, taking due account of the legal relationship between the supply organisations. 5. Entities shall consider for a particular procurement those suppliers of the other Party that request to participate in the procurement and that are not yet registered or qualified, provided there is sufficient time to complete the registration or qualification procedures within the time period allowed for the submission of tenders. 6. Nothing in this Article shall preclude an entity from excluding a supplier from a procurement on grounds such as bankruptcy, liquidation or insolvency, false declarations relating to a procurement, or significant deficiency in the performance of any obligation under a prior contract.

Article 12 Lists of Registered or Qualified Suppliers

str. 911. Entities may establish for continuing use a list of suppliers registered or qualified to participate in procurements. 2. Entities shall publish annually or otherwise make available continuously in electronic form a notice inviting interested suppliers to apply for inclusion on the list.

str. 923. The notice shall include:
2. (a) a description of the goods and services for which the list may be used; and
3. (b) the conditions to be satisfied by suppliers for inclusion on the list. 4. Entities shall ensure that suppliers may apply for participation in the list at any time, and that all qualifying suppliers are included within a reasonable period, taking into account the conditions for participation and the need for verification. 5. Where entities require suppliers to qualify for such a list before being permitted to participate in a procurement, and a supplier that has not previously satisfied such requirements or conditions submits an application, the entity shall promptly start the registration or qualification process. The entity shall allow such supplier to participate in the procurement, provided there is sufficient time to complete the registration or procurement procedures within the time period allowed for the submission of tenders. 6. Entities shall notify qualified suppliers of the termination of or their removal from a list and, on request of a supplier, provide the supplier with written reasons for this action within a reasonable time.

Article 13 Technical Specifications

str. 921. Each Party shall ensure that its entities do not prepare, adopt or apply any technical specification with the purpose or the effect of creating unnecessary obstacles to trade between the Parties. 2. Any technical specifications prescribed by an entity shall, where appropriate:

str. 93- (a) be specified in terms of performance and functional requirements, rather than design or descriptive characteristics; and
- (b) be based on international standards, where applicable, or otherwise on national technical regulations, recognised national standards, or building codes. 3. Each Party shall ensure that its entities do not prescribe technical specifications that require or refer to a particular trademark or trade name, patent, design or type, specific origin or producer or supplier, unless there is no sufficiently precise or intelligible way of otherwise describing the procurement requirements and provided that, in such cases, words such as 'or equivalent' are included in the tender documentation. 4. Each Party shall ensure that its entities do not seek or accept, in a manner that would have the effect of prejudicing fair competition, advice to be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in that procurement.

Article 14 Tender Documentation

str. 931. Tender documentation provided to suppliers shall contain all information necessary to enable them to prepare and submit responsive tenders, including the essential requirements and evaluation criteria for the award of the procurement contract. 2. Where entities do not offer direct access to the tender documentation by electronic means, entities shall promptly make available the tender documentation at the request of any interested or, as applicable, qualified supplier.

str. 943. Entities shall endeavour to reply promptly to any reasonable request for relevant information or explanation made by a supplier, provided that such information does not give that supplier an advantage over other suppliers. The information or explanation given to a supplier may be provided to all participating suppliers known to the entity, in which case it shall be provided promptly. 4. Where an entity modifies the tender documentation, and that modification could impact on the preparation of tenders, it shall publish or transmit all such modifications in writing:

- (a) to all suppliers who have requested tender documentation at the time the criteria are modified, and in the same manner as the original information was transmitted by the entity; and
- (b) in adequate time to allow such suppliers to modify and resubmit their tenders, as appropriate.

Article 15 Exceptions to Open or Selective Tendering

str. 95Provided that the tendering procedure is not used to avoid competition or to protect domestic suppliers, entities may award contracts by means other than open or selective tendering procedures in any of the following circumstances:

- (a) where, in response to a prior notice, invitation to participate, or invitation to tender under open or selective tendering procedures:
- (i) no tenders were submitted;
- (ii) no tenders were submitted that conform to the essential requirements in the tender documentation; or - (iii) no suppliers satisfied the conditions for participation; and

provided that the essential requirements of the procurement as set out in the tender documentation have not been substantially modified;

- (b) where, for works of art, or for reasons connected with the protection of exclusive rights, such as patents or copyrights, or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;
- (c) for additional deliveries by the original supplier which are intended either as replacement parts, extensions or continuing services for or upgrades of existing equipment, software, services or installations, where a change of supplier would compel the entity to procure goods or services not meeting requirements of interchangeability with existing equipment, software, services or installations, or conditions under original supplier warranties;
- (d) for goods purchased on a commodity market;
- (e) when an entity procures a prototype or a first good or service that is developed at its request in the course of, and for, a particular contract for research, experiment, study or original development.

str. 96When such contracts have been fulfilled, subsequent procurements of such goods or services shall be subject to this Chapter;
- (f) when additional construction services, which were not included in the initial contract but which were within the objectives of the original tender

- documentation, have, due to unforeseeable circumstances, become necessary to complete the construction services described therein, provided that the total value of contracts awarded for additional construction services does not exceed 50 percent of the amount of the main contract;

- (g) in so far as it is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the entity and beyond its control, the goods or services could not be obtained in time by means of an open or selective tendering procedure;
- (h) for purchases made under exceptionally advantageous conditions that only arise in the very short term, including public auction or unusual disposals, such as those resulting from liquidation, bankruptcy or receivership.

str. 97This subparagraph is not intended to cover routine purchases from regular suppliers;
- (i) in the case of a contract awarded to the winner of a design contest provided that the contest has been organised in a manner which is consistent with the principles of this Chapter and that the contest is judged by an independent jury with a view to a design contract being awarded to the winner; or
- (j) for new construction services consisting of the repetition of similar construction services which conform to a basic project for which an initial contract was awarded, in accordance with the open or selective tendering procedures set out in this Chapter, and for which the entity has indicated in the notice of intended procurement concerning the initial construction service that procedures other than open or selective tendering procedures mightbe used in awarding contracts for such new construction services. 2. The Parties shall ensure that where entities resort to a procedure other than open or selective tendering based on the circumstances set forth in Paragraph 1, the entities shall maintain a written record or report setting out the circumstances and specific justifications for resorting to a procedure other than open or selective tendering.

Article 16 Awarding of Contracts

str. 971. The Parties shall ensure that their entities receive, open and evaluate all tenders under procedures that guarantee the fairness and impartiality of the procurement process. 2. To be considered for award of a contract, a tender must, at the time of opening by the entity, conform to the essential requirements of the notice of intended procurement or tender documentation and be submitted by a supplier who complies with the conditions for participation. 3. Unless an entity determines that it is not in the public interest to award a contract, it shall award the contract to the supplier that has been determined to be fully capable of undertaking the contract and has submitted the tender that:

- (a) offers the best value for money;
- (b) offers the lowest price; or
- (c) is the most advantageous

in terms of the essential requirements and evaluation criteria set forth in the tender documentation.

str. 984. An entity shall not cancel a procurement covered by this Chapter, or terminate or modify awarded contracts, in order to circumvent the requirements of this Chapter.

Article 17 Post-Award Information

str. 981. Entities shall promptly inform suppliers that have submitted a tender of the contract award decision. 2. Entities shall, on request from an unsuccessful supplier, promptly explain the reasons for the rejection of its tender or the relative advantages of the tender the entity selected. 3. Entities shall, promptly after the award of a contract for a procurement covered by this Chapter, publish a notice containing at least the following information:

- (a) the name and address of the successful supplier;
- (b) a description of the goods or services supplied; and
- (c) the value of the contract award.

Article 18 Ensuring Integrity in Procurement Practices

str. 98Each Party shall ensure that criminal or administrative penalties exist to address corruption in its government procurement, and that its entities have in place policies and procedures to address any potential conflict of interest on the part of those engaged in or having influence over a procurement.

Article 19 Domestic Review of Supplier Complaints

str. 99Each Party shall ensure that its entities accord impartial and timely consideration to any complaints from suppliers

regarding an alleged breach of measures or government procurement measures implementing this Chapter arising in the context of a procurement in which those suppliers have, or have had, an interest. Where appropriate, a Party may encourage suppliers to seek clarification from its entities with a view to facilitating the resolution of any such complaints.

str. 992. Each Party shall provide suppliers of the other Party with non-discriminatory, timely, transparent and effective access to an administrative or judicial body competent to hear or review complaints of alleged breaches of the procuring Party's measures or government procurement measures implementing this Chapter arising in the context of procurements in which those suppliers have, or have had, an interest. 3. Each Party shall make information on complaint mechanisms generally available. 4. Where an administrative or judicial body may award compensation for any breach of measures or government procurement measures implementing this Chapter, such compensation may be limited to the costs for tender preparation reasonably incurred by the supplier for the purpose of the procurement.

Article 20 Use of Electronic Communications in Procurement

str. 991. The Parties shall encourage their entities to provide opportunities for government procurement to be undertaken through the internet and shall encourage, to the extent possible, the use of electronic means for the provision of tender documentation and receipt of tenders. 2.

str. 100In order to facilitate commercial opportunities for their suppliers under this Chapter, each Party shall maintain a single electronic point of access to comprehensive information on government procurement supply opportunities

in its Area, including as set out in Paragraph 2 of Article 10, and information on government procurement measures, as set out in Article 8. The contact point or points from whom suppliers can obtain information on government procurement shall either be specified in Annex IV, or be set out in the information on the single electronic point of access.

str. 1003. Each Party shall encourage its entities to publish on the internet information regarding the entities' indicative procurement plans as early as possible in the fiscal year.

Article 21 Modifications and Rectifications of Annexes

str. 1001. Each Party may modify its Annexes to this Chapter in conformity with Paragraph 2 of Article 2 (Functions of the Joint Commission) of Chapter 17 (Administrative and Institutional Provisions) provided that it:

- (a) notifies the other Party of the proposed modification; and
- (b) provides the other Party appropriate compensatory adjustments to its coverage in order to maintain a level of coverage comparable to that existing prior to the modification. 2. Notwithstanding Paragraph 1(b), no compensatory adjustments shall be provided to the other Party where the modification by a Party of its Annexes concerns:

- (a) rectifications of a purely formal nature and minor amendments to entity coverage and/or the single electronic point of access and/or contact points, made through an implementing arrangement in accordance with Paragraph 2 of Article 2 (Functions of the Joint Commission) of Chapter 17 (Administrative and Institutional Provisions); or

-

str. 101- (b) one or more entities over which government control or influence has been effectively eliminated as a result of corporatisation and commercialisation or privatisation.

For Hong Kong, China:

Section A: List of Entities

str. 1021. Agriculture, Fisheries and Conservation Department
2. Architectural Services Department
3. Audit Commission
4. Auxiliary Medical Service
5. Buildings Department
6. Census and Statistics Department
7. Civil Aid Service
8. Civil Aviation Department
9. Civil Engineering and Development Department
10. Companies Registry
11. Correctional Services Department
12. Customs and Excise Department
13. Department of Health
14. Department of Justice
15. Drainage Services Department
16. Electrical and Mechanical Services Department
17. Environmental Protection Department
18. Fire Services Department
19. Food and Environmental Hygiene Department
20. Government Flying Service
21. Government Laboratory
22. Government Logistics Department
23. Government Property Agency
24. Government Secretariat
25. Highways Department
26. Home Affairs Department
27. Hong Kong Monetary Authority
28. Hong Kong Observatory
29. Hong Kong Police Force (including Hong Kong Auxiliary Police Force)
30. Immigration Department
31. Independent Commission Against Corruption
32. Information Services Department
33. Inland Revenue Department
34.

str. 103Intellectual Property Department 35. Invest Hong Kong
36. Joint Secretariat for the Advisory Bodies on Civil Service and Judicial Salaries and Conditions of Service
37. Judiciary
38. Labour Department
39. Land Registry
40. Lands Department
41. Legal Aid Department
42. Leisure and Cultural Services Department
43. Marine Department
44. Office of the Telecommunications Authority
45. Official Receiver's Office
46. Planning Department
47. Post Office
48. Public Service Commission
49. Radio Television Hong Kong
50. Rating and Valuation Department
51. Registration and Electoral Office
52. Social Welfare Department
53. Student Financial Assistance Agency
54. Television and Entertainment Licensing Authority
55. Trade and Industry Department
56. Transport Department
57. Treasury
58. University Grants Committee Secretariat
59. Water Supplies Department

Section B: Covered Goods and Services

Goods

str. 103Chapter 12 (Government Procurement) applies to all goods procured by the entities listed in Section A.

Services (other than construction services)

Construction Services

str. 105The following construction services in the sense of Division 51 of the CPC are covered:

- -All services of Division 51 of the CPC

A construction services contract is a contract which has as its objective the realisation by whatever means of civil or building works, in the sense of Division 51 of the CPC.

Notes to Sections A and B:

str. 1061. Notwithstanding anything in Sections A and B, Chapter 12 (Government Procurement) shall not apply to:
2. (a) all consultancy and franchise arrangements, including build-operate-transfer contracts and public works concession contracts;
3. (b) transportation of mail by air;
4. (c) statutory insurances including third party liability in respect of vehicles and vessels and employer's liability insurance in respect of employees; and
5. (d) purchase of office or residential accommodation by the Government Property Agency. 2. Suppliers of telecommunications services may require licensing under the Telecommunications Ordinance, Chapter 106. Suppliers applying for the licences are required to be established in Hong Kong under the Companies Ordinance, Chapter 32. 3. The following services are excluded from Financial Services under Section B:
8. (a) CPC 81402

Insurance and pension consultancy services

- (b) CPC 81339

Money broking

- (c) CPC 8119+81323

Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial depository and trust services.

(d) CPC 81339 or 81319

str. 107Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments.

(e) CPC 8131 or 8133

str. 107Advisory and other auxiliary financial services on all the activities listed in subparagraphs 5(a)(v) to (xvi) in the Annex on Financial Services to the GATS, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.

For New Zealand:

Section A: List of Entities

str. 108Archives New Zealand

Crown Law Office

Department of Building and Housing

Department of Conservation

Department of Internal Affairs

Department of Labour

Department of the Prime Minister and Cabinet

Education Review Office

Government Communications Security Bureau

Inland Revenue Department

Land Information New Zealand

Ministry of Agriculture and Forestry

Ministry for Culture and Heritage

Ministry of Defence

Ministry of Economic Development

Ministry of Education

Ministry for the Environment

Ministry of Fisheries

Ministry of Foreign Affairs and Trade

Ministry of Justice

Ministry of M ā ori Development

Ministry of Pacific Island Affairs

Ministry of Research, Science and Technology

Ministry of Social Development

Ministry of Women's Affairs

New Zealand Customs Service

New Zealand Food Safety Authority

Serious Fraud Office

State Services Commission

The Treasury

Section B: Goods and Services

1. Goods

str. 108Chapter 12 (Government Procurement) applies to all goods procured by the entities listed in Section A, except in the case of procurements listed in Section C.

2. Services

str. 109Chapter 12 (Government Procurement) applies to all services procured by the entities listed in Section A, except in the case of the following:

- (a) procurement of research and development services 6 ;
- (b) procurement of public health, education and welfare services 7 ; and
- (c) procurements listed in Section C.

3. Construction Services 8

str. 109Chapter 12 (Government Procurement) applies to all construction services procured by the entities listed in Section A, except in the case of procurements listed in Section C.

Section C: General Conditions

str. 1091. Chapter 12 (Government Procurement) shall not apply to procurement of goods or services in respect of contracts for construction, refurbishment or furnishing of chanceries abroad 9 . 2. Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same conditions prevail or a disguised restriction on trade between the Parties, nothing in Chapter 12 (Government Procurement) shall be construed to prevent New Zealand from adopting or maintaining measures relating to goods or services of not for profit institutions. 6 As defined in WTO document MTN.GNS/W/120 (CPC 851- 853). 7 Refers to procurement, for provision to the public, of services classified in WTO document MTN.GNS/W/120 under the sector headings 'Educational Services' (CPC 921, 922, 923, 924, and 929) and 'Health Related and Social Services' (Public Health: CPC 931, including 9311, 9312 and 9319; Welfare: CPC 933 and 913). 8 This refers to WTO document MTN.GNS/W/120 sector heading 'Construction and Related Engineering Services'. 9 As regards construction services, this refers to WTO document MTN.GNS/W/120 sector heading 'Construction and Related Engineering Services'.

THRESHOLDS

str. 110Goods:

SDR 130,000

Services other than construction services:

SDR 130,000

Construction services:

SDR 5,000,000

Thresholds shall be converted to the respective national currencies in accordance with the following provisions:

1. Each Party shall calculate and publish the value of the thresholds under this Chapter expressed in the corresponding national currency. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly 'International Financial Statistics'. 2. The conversion rates shall be the average of the daily values of the respective national currency in terms of the SDR over the two-year period preceding 1 November of the year prior to the thresholds in national currency becoming effective which shall be from 1 January. 3. Thresholds expressed in national currencies shall be fixed for two calendar years.

ANNEX III TO CHAPTER 12 (GOVERNMENT PROCUREMENT) SINGLE ELECTRONIC POINT OF ACCESS

For Hong Kong, China:

str. 112Europe Division Trade and Industry Department Trade and Industry Department Tower 700 Nathan Road Mongkok, Kowloon Hong Kong

For New Zealand:

str. 112Industry and Regional Development Branch Ministry of Economic Development Level 10, 33 Bowen St PO Box 1473 Wellington New Zealand

TRADE IN SERVICES

Article 1 Objectives

str. 113The objectives of this Chapter are to:

- (a) facilitate the expansion of trade in services on a mutually advantageous basis;
- (b) improve the efficiency and transparency of the Parties' respective services sectors and competitiveness of their export trade; and
- (c) work toward progressive liberalisation,

while recognising the right of each Party to regulate and introduce new regulations, and to provide and fund public services, in a manner that gives due respect to government policy objectives.

Article 2 Scope

str. 1131. This Chapter shall apply to measures adopted or maintained by a Party affecting trade in services. 2. This Chapter shall not apply to:
2. (a) government procurement;
3.

str. 114(b) services supplied in the exercise of governmental authority; - (c) subsidies 10 provided by a Party or a state enterprise thereof, including government-supported loans, guarantees and insurance, or to any conditions attached to the receipt or continued receipt of such subsidies, whether or not such subsidies are offered exclusively to domestic services, service consumers or service suppliers, except as provided for in Article 11;
- (d) measures affecting natural persons seeking access to the employment market of a Party; or
- (e) measures regarding citizenship, nationality, residence or employment. 3. This Chapter shall not apply to measures affecting air transport services or related services in support of air services except that this Chapter shall apply to measures affecting:

- (a) aircraft repair and maintenance services;
- (b) the selling and marketing of air transport services; and
- (c) computer reservation system services. 4. The Parties note the multilateral negotiations pursuant to the review of the GATS Annex on Air Transport Services . Upon the conclusion of such multilateral negotiations, the Parties shall conduct a review for the purpose of discussing appropriate amendments to this Agreement, so as to take into account the results of such multilateral negotiations. 10 Including grants.

Article 3 Definitions

Article 4 Market Access

str. 119Neither Party shall, either on the basis of a regional sub-division or on the basis of its entire Area, adopt or maintain:

- (a) limitations on 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) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
- (c) limitations on the total number of service operations or on 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 12 ;
- (d) limitations on 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; and
- (e) measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service. 12 Subparagraph (c) does not cover measures of a Party which limit inputs for the supply of services.

Article 5 National Treatment 1. Each Party shall accord to services and service suppliers of the other Party, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers 13 .

str. 1202. A Party may meet the requirement of Paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers. 3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Party compared to the like services or service suppliers of the other Party.

Article 6 Local Presence

str. 120Neither Party may 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 Area as a condition for the supply of cross-border trade in services.

Article 7 Application of Articles 4, 5, 6 and 12

str. 1201. Articles 4, 5, 6 and 12 shall not apply to:

13 Obligations assumed under this Article by a Party except as set out in its Schedules to Annexes I and II shall not be construed to require that Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.

str. 121- (a) any existing non-conforming measure that is maintained by a Party at:
- (i) the central level of government, as set out by that Party in its Schedule to Annex I; or
- (ii) a local level of government;
- (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 4, 5, 6 and 12. 2. Articles 4, 5, 6 and 12 do 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 8 Review

str. 121The Parties shall consult within two years of entry into force of this Agreement and at least every three years thereafter, or as otherwise agreed, to review the implementation of this Chapter and consider other trade in services issues of mutual interest, with a view to the progressive liberalisation of the trade in services between them on a mutually advantageous basis.

Article 9

Domestic Regulation

str. 1221. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner. 2. Each Party shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of and, where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Party shall ensure that the procedures in fact provide for an objective and impartial review. 3. Where authorisation is required for the supply of a service, the competent authorities of a Party shall:
4. (a) in the case of an incomplete application, at the request of the applicant, identify all the additional information that is required to complete the application and provide the opportunity to remedy deficiencies within a reasonable timeframe;
5. (b) within a reasonable period of time after the submission of an application considered complete under domestic law, inform the applicant of the decision concerning the application;
6. (c) at the request of the applicant, provide, without undue delay, information concerning the status of the application; and
7. (d) if an application is terminated or denied, to the maximum extent possible, inform the applicant in writing and without delay the reasons for such action. The applicant will have the possibility of resubmitting, at its discretion, a new application. 4. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards, and licensing requirements and procedures do not constitute unnecessary barriers to trade in services, each Party shall ensure that any such measures that it adopts or maintains 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;
- (c) in the case of licensing procedures, not in themselves a restriction on the supply of the service; and
- (d) subject to Paragraph 5 of Annex III, in compliance with the disciplines on domestic regulation in that Annex. 5. In determining whether a Party is in conformity with its obligations under Paragraph 4, account shall be taken of international standards of relevant international organisations 14 applied by that Party. 6. If the results of the negotiations related to Article VI(4) of GATS (or the results of any similar negotiations undertaken in other multilateral fora in which the Parties participate) enter into effect, the Parties shall jointly review such results. Where the joint review assesses that the incorporation of such results into this Agreement would improve or strengthen the disciplines contained herein, the Parties shall jointly

14 The term 'relevant international organisations' refers to the international bodies whose membership is open to the Parties. determine whether to incorporate such results into this Agreement.

str. 1247. Nothing in this Article and Annex III shall apply to any measure adopted or maintained by a Party consistent with its Schedules to Annexes I and II.

Article 10 Recognition

str. 1241. For the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing or certification of service suppliers, and subject to the requirements of Paragraph 4, a Party may recognise the education or experience obtained, requirements met, or licences or certification granted in the Area of the other Party. 2. Where a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met or licences or certification granted in the Area of a non-Party, nothing in Article 12 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 Area of the other Party. 3. A Party that is a party to an agreement or arrangement of the type referred to in Paragraph 2, whether existing or future, shall afford adequate opportunity for the other Party, upon request, to negotiate its accession to such an agreement or arrangement or to negotiate a comparable one with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education or experience obtained, requirements met, or licences or certifications granted in that other Party's Area should be recognised. 4.

str. 125A 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 service suppliers, or a disguised restriction on trade in services.

str. 1255. The Parties agree to facilitate the establishment of dialogue between their regulators and/or relevant industry bodies with a view to the achievement of early outcomes on recognition of qualifications and/or professional registration. 6. Such recognition may be achieved through harmonisation, recognition of regulatory outcomes, recognition of qualifications and professional registration awarded by one Party as a means of complying with the regulatory requirements of the other Party (whether accorded autonomously or by mutual arrangement) or recognition arrangements concluded between the Parties and between industry bodies.

Article 11 Subsidies

str. 125Notwithstanding Paragraph 2(c) of Article 2:

- (a) the Parties shall review the issue of disciplines on subsidies related to trade in services in the light of any disciplines agreed under Article XV of GATS , with a view to the incorporation of such disciplines into this Agreement; and
- (b) a Party which considers that it is adversely affected by a subsidy of the other Party related to trade in services may request consultations on such matters. The Parties shall enter into such consultations.

Article 12 Most Favoured Nation Treatment

str. 126Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than

that it accords, in like circumstances, to services and service suppliers of a non-Party.

str. 1262. Notwithstanding Paragraph 1, the Parties reserve the right to adopt or maintain any measure that accords differential treatment to non-Parties under any free trade agreement or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. 3. For greater certainty, Paragraph 2 includes, in respect of agreements on the liberalisation of trade in goods or services or investment, any measures taken as part of a wider process of economic integration or trade liberalisation between the parties to such agreements. 4. The Parties reserve the right to adopt or maintain any measure that accords differential treatment to non-Parties under any international agreement in force or signed after the date of entry into force of this Agreement involving:

- (a) aviation;
- (b) fisheries; and
- (c) maritime matters.

Article 13 Monopolies and Exclusive Service Suppliers

str. 1261. Each Party shall ensure that any monopoly supplier of a service in its Area 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 4, 5, 6 and 12 except as set out in its Schedules to Annexes I and II. 2.

str. 127Where a Party's monopoly supplier of a service competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights, the Party shall ensure that such a supplier does not

abuse its monopoly position to act in its Area in a manner inconsistent with that Party's obligations under Articles 4, 5, 6 and 12 except as set out in its Schedules to Annexes I and II.

str. 1273. 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, that Party 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 Area.

Article 14 Denial of Benefits

str. 1271. Subject to prior notification wherever possible, and in any event subject to notification within ten working days of the decision, a Party may deny the benefits of this Chapter to a service supplier of the other Party where the Party establishes that:

- (a) the service is being supplied by an enterprise that is owned or controlled by persons of a non-Party and the enterprise has no substantive business operations in the Area of the other Party; or
- (b) the service is being supplied by an enterprise that is owned or controlled by persons of the denying Party and the enterprise has no substantive business operations in the Area of the other Party. 2. A Party that denies benefits pursuant to Paragraph 1 shall enter into consultations if requested by the other Party within 30 days following the receipt of the request.

consultations conducted pursuant to this Paragraph shall be without prejudice to the rights and obligations of the Parties under Chapter 16 (Dispute Settlement) or under the WTO Dispute Settlement Understanding .

Article 15 Miscellaneous Provisions

str. 1281. The GATS Annex on Financial Services and Annex on Telecommunications are incorporated into and made part of this Chapter, mutatis mutandis. 2. Additional provisions on education cooperation are set out in Annex IV. 3. Notwithstanding Article 7, Articles 4, 5, 6 and 12 do not apply to any measure affecting the presence of natural persons (Mode 4). 4. In accordance with Article 4 (Grant of Temporary Entry) of Chapter 14 (Movement of Business Persons), commitments in respect of the presence of natural persons (Mode 4) are set out in each Party's Schedule to Annex I of Chapter 14 (Movement of Business Persons).

Article 16 Committee on Trade in Services

str. 1281. For purposes of the effective implementation and operation of this Chapter and Chapter 14 (Movement of Business Persons), the Parties hereby establish a Committee on Trade in Services ('Committee on Services') to consider any matter arising under this Chapter and Chapter 14 (Movement of Business Persons). 2. The Committee on Services shall:

str. 129- (a) consider any matters related to the implementation of this Chapter and Chapter 14 (Movement of Business Persons);
- (b) review the implementation of this Chapter and Chapter 14 (Movement of Business Persons) and consider other trade in services issues of mutual interest pursuant to Article 8;
- (c) explore measures for the further expansion of trade in services between the Parties; and
- (d) take any other action it decides appropriate for the implementation of this Chapter and Chapter 14 (Movement of Business Persons). 3. The Committee on Services shall meet within the first year of the date of entry into force of this Agreement and subsequently thereafter as mutually determined by the Parties. 4. The Committee on Services may meet in person or via teleconference, video-conference or any other means mutually determined by the Parties. Should the Parties determine to meet in person, the venue for the meetings shall, unless the Parties determine otherwise, alternate between the Parties.

Article 17 Contact Points

str. 1291. Each Party shall designate a contact point for trade in services to facilitate communication between the Parties, and shall provide details of such contact point to the other Party. 2. The Parties shall notify each other promptly of any amendments to the details of their contact points.

Headnote

str. 1301. Where appropriate, non-conforming measures are referenced to the Provisional Central Product Classification ('CPC') as set out in Statistical Office of the United Nations Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991 ('CPC code') and on the basis of the Services Sectoral Classification List WTO document MTN.GNS/W/120. 2. The Schedule of a Party sets out, pursuant to Paragraph 1 of Article 7 (Application of Articles 4, 5, 6 and 12), a Party's existing measures that are not subject to some or all of the obligations imposed by:

- (a) Article 4 (Market Access);
- (b) Article 5 (National Treatment);
- (c) Article 6 (Local Presence); or
- (d) Article 12 (Most Favoured Nation Treatment). For greater certainty, Article 4 (Market Access) only refers to non-discriminatory measures. 3. Local Presence and National Treatment are separate disciplines and a measure that is only inconsistent with Local Presence need not be reserved against National Treatment. 4 .

str. 1329. All elements of the entry shall be considered in their totality for the purposes of its interpretation.

SCHEDULE OF HONG KONG, CHINA

str. 132Sector

Business Services Professional Services Accounting, Auditing and Book Keeping Services

Industry Classification

CPC 862

Accounting, Auditing and Book Keeping Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Measure

str. 133Section 29 of the Professional Accountants Ordinance (Cap. 50)

Description

Cross-Border Services and Investment

Provision of statutory auditing services is limited to corporate practices and natural persons licensed as certified public accountants (practising), either as sole proprietors or in partnership. Sector

Business Services Professional Services Architectural Services

Industry Classification

CPC 8671 Architectural Services

str. 134Obligations concerned

National Treatment (Article 5) Local Presence (Article 6)

Measure

Section 13 of the Architects Registration Ordinance (Cap. 408)

Description

Cross-Border Services and Investment

To be registered as a Registered Architect, a person has to have one year's relevant experience in Hong Kong, China before the date of his application for registration; and to be ordinarily resident in Hong Kong, China. Sector

Business Services Professional Services Engineering Services Integrated Engineering Services

Industry Classification

CPC 8672

str. 135CPC 8673

Engineering Services

Integrated Engineering Services

Obligations concerned

National Treatment (Article 5) Local Presence (Article 6)

Measure

Section 12 of the Engineers Registration Ordinance (Cap. 409)

Description

Cross-Border Services and Investment

To be registered as a Registered Professional Engineer, a person has to have one year's relevant experience in Hong Kong, China before the date of his application for registration; and to be ordinarily resident in Hong Kong, China. Sector

Business Services Professional Services Urban Planning and Landscape Architectural Services

Industry Classification

CPC 8674

str. 136Urban Planning and Landscape Architectural Services

Obligations concerned

National Treatment (Article 5) Local Presence (Article 6)

Measure

Section 12 of the Planners Registration Ordinance (Cap. 418) Section 12 of the Landscape Architects Registration Ordinance (Cap. 516)

Description

Cross-Border Services and Investment

To be registered as a Registered Professional Planner, a person has to have one year's relevant experience in Hong Kong, China before the date of his application for registration; and to be ordinarily resident in Hong Kong, China. To be registered as a Registered Landscape Architect, a person has to have one year's relevant experience in Hong Kong, China before the date of his application for registration; and to be ordinarily resident in Hong Kong, China. Sector

Business Services Other Business Services Services incidental to Fishing

Industry Classification

CPC 882 Services incidental to Fishing

Obligations concerned

Market Access (Article 4) National Treatment (Article 5)

Measure

Section 12 of the Merchant Shipping (Local Vessel) Ordinance (Cap. 548)

Description

Investment

str. 137Fishing vessels must be certificated. To be certificated as a Local Vessel Class III 'fishing vessel' plying within the waters of Hong Kong, China, if the owner of the vessel is an individual, the owner shall be an individual who holds a valid Hong Kong Identity Card and who is ordinarily resident in Hong Kong, China.

str. 138Sector

Business Services Other Business Services Services incidental to Manufacturing

Transport Services Services auxiliary to all Modes of Transport Storage and Warehousing Services

Industry Classification

CPC

884+885

except for

88442

CPC 742

Services incidental to Manufacturing

Storage and Warehousing Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5)

Measure

Sections 7 & 8A of the Dutiable Commodities Ordinance (Cap. 109)

Regulation 22 of the Dutiable Commodities Regulations (Cap. 109A)

Description

Investment

To apply for a licence for the manufacture or storage of dutiable commodities under the Dutiable Commodities Ordinance (Cap. 109), the applicant has to appoint a responsible person to be held responsible for the running and management of the premises concerned. The responsible person has to be a Hong Kong resident holding a valid Hong Kong Identity Card.

str. 139Sector

Business Services Other Business Services Services incidental to Manufacturing

Industry Classification

CPC 8847

str. 139CPC 885

Manufacture of rubber and plastics products, on a fee or contract basis

Services incidental to the manufacture of metal products, machinery and equipment

Obligations concerned

Market Access (Article 4) National Treatment (Article 5)

Measure

Sections 5(1), 5(2)(c)(v) and 30 of the Prevention of Copyright Piracy Ordinance (Cap. 544)

Description

Investment

To apply for a licence for the manufacture of optical discs or stampers under the Prevention of Copyright Piracy Ordinance (Cap. 544), the applicant has to be a Hong Kong resident holding a valid Hong Kong Identity Card. Sector

Business Services Other Business Services Related Scientific and Technical Consulting Services

Industry Classification

CPC 8675

str. 140Related Scientific and Technical Consulting Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Measure

Section 12 of the Land Survey Ordinance (Cap. 473) Section 12 of the Surveyors Registration Ordinance (Cap. 417)

Description

Cross-Border Services and Investment

Certain statutory land boundary survey services are required to be carried out by Authorised Land Surveyors registered under the Land Survey Ordinance (Cap. 473). To be qualified for registration as an Authorised Land Surveyor, a person has to attain one year local land boundary survey experience in Hong Kong, China. To be registered as a Registered Professional Surveyor under the Surveyors Registration Ordinance (Cap. 417), a person has to have one year's relevant experience in Hong Kong, China before the date of his application for registration; and to be ordinarily resident in Hong Kong, China.

Description

str. 140Construction and Related Engineering Services 15

str. 141CPC 513

General Construction Work for Civil Engineering

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Section 4 of the Buildings Ordinance (Cap. 123)

Regulation 3 of the Building (Administration) Regulations (Cap. 123A)

Section 13 of the Architects Registration Ordinance (Cap. 408)

Section 12 of the Engineers Registration Ordinance (Cap. 409)

Section 12 of the Surveyors Registration Ordinance (Cap. 417)

Cross-Border Services and Investment

Non-exempted construction and building works shall be carried out by statutory building agents, including Authorised Persons ('AP'), Registered Structural Engineers ('RSE'), Registered Geotechnical Engineers ('RGE'), Registered Contractors ('RC') and Technically Competent Persons ('TCP'). To register as an AP , RSE or RGE, a person shall be a Registered Architect ('RA') or Registered Professional Engineer ('RPE') in the relevant disciplines or Registered Professional Surveyor ('RPS') and have one year's relevant professional experience in Hong Kong, China. To register as a RA or RPE in the relevant disciplines or RPS, a person shall be ordinarily resident in Hong Kong, China. 15 For railway construction and project implementation services, please refer to II-HKC-25 of Hong Kong, China's Schedule to Annex II.

str. 142To register as a RC, the key personnel of the applicant (which can be a corporation) shall possess adequate working experience, some of which has to be gained in Hong Kong, China. To be qualified as a TCP, a person shall possess site experience in Hong Kong, China. Sector

Education Services

Industry Classification

CPC 921

CPC 922

CPC 923

CPC 924

CPC 929

Primary Education Services

Secondary Education Services

Higher Education Services

Adult Education Services

Other Education Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Measure

Education Ordinance (Cap. 279) Administrative Requirement

Description

Investment

str. 143For the supply of the above services:

- Schools (including those providing post-secondary programmes) registered under the Education Ordinance (Cap. 279), whether private or public, are required to be managed by managers. Section 30(1)(a) of Cap. 279 provides that the Permanent Secretary for Education may refuse to register an applicant as manager of a school if it appears to him that the applicant is not resident in Hong Kong, China for at least nine months in each year. For the supply of primary education and secondary education services:

- An operator of international schools which offers non-local curriculum is subject to the administrative requirements which include proving the established demand for such non-local curriculum in the community. International schools are schools which follow a non-local curriculum and whose students do not sit local examinations. It generally refers to those schools offering full non-local curricula designed primarily for non-Chinese speaking students and foreign nationals. Sector

Education Services

Industry Classification

CPC 923

CPC 924

Higher Education Services

Adult Education Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Measure

Education Ordinance (Cap. 279) Non-local Higher and Professional Education (Regulation)

Post Secondary Colleges Ordinance (Cap. 320) Ordinance (Cap. 493)

str. 144Description

Cross-Border Services and Investment

- The provision of local courses and non-local courses at post-secondary level are subject to different registration requirements. Institutions providing local courses at post-secondary level shall be registered under the Post Secondary Colleges Ordinance (Cap. 320) or for provision of courses not leading to the award of a degree under the Education Ordinance (Cap. 279), while non-local courses leading to the award of a non-local higher academic or professional qualification shall be registered under the Non-local Higher and Professional Education (Regulation) Ordinance (Cap. 493). - In respect of the provision of local courses, Section 4(j) of Cap. 320 requires that a registered post-secondary college should be free from affiliation with or control by any government other than the Government of Hong Kong, China or any organisation outside Hong Kong, China.

With respect to Modes 1 and 3:

str. 144- A person who provides non-local courses which are regulated courses is subject, inter alia , to the following measures under Cap. 493:
- -A regulated course conducted in collaboration with a local institution of higher education specified under Cap.

str. 145493 can be exempted from registration subject to conditions stipulated in Section 8 of the Ordinance; and - -An application for registration of a regulated course requires, inter alia , the undertaking of a person who states that he undertakes to perform, in relation to the course, the functions imposed on a designated person by Cap. 493. Such person shall be ordinarily resident in Hong Kong, China and the holder of an identity card. For these purposes:

- (i) the term 'local courses' means courses purporting to lead to the award of a local qualification;
- (ii) the term 'non-local courses' means courses purporting to lead to the award of a non-local qualification; and
- (iii) the term 'regulated course' bears the meaning given to it in Cap. 493. Sector

Transport Services Maritime Transport Services

Industry Classification

CPC 7211

CPC 7212

CPC 7213

CPC 83103

Passenger Transportation

Freight Transportation

Rental of Vessels with Crew

Rental/Leasing Services Operators relating to Ships

without

Obligations concerned

National Treatment (Article 5)

Measure

Section 23B of the Inland Revenue Ordinance (Cap. 112)

Description

Investment

Income derived from international operation of ships registered in the Hong Kong Shipping Register is exempted from Hong Kong, China's profit tax.

SCHEDULE OF NEW ZEALAND

str. 147Sector

All Sectors

Industry Classification

Obligations concerned

National Treatment (Article 5)

Measure

Companies Act 1993 Financial Reporting Act 1993

Description

Investment

Overseas companies are required to prepare audited financial statements on an annual basis. Legislation also requires financial statements in relation to an overseas company's New Zealand business. The following companies are required to deliver annual audited financial statements to the Registrar of Companies for registration:

- (a) issuers - i.e. those which have raised capital from the New Zealand public;
- (b) overseas companies;
- (c) subsidiaries of companies or bodies corporate incorporated outside New Zealand; or
- (d) companies in which 25 percent or more of the shares are held or controlled by:
- (i) a subsidiary of a company or body corporate incorporated outside New Zealand or a subsidiary of that subsidiary;
- (ii) a company or body corporate incorporated outside New Zealand;
- (iii) a person not ordinarily resident in New Zealand. Sector

Business services

Industry Classification

Services relating to patents

Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Measure

S.100(2)(a) of the Patents Act 1953

Description

Cross-Border Services and Investment

ANNEX II TO CHAPTER 13 (TRADE IN SERVICES)

Headnote

str. 1541. Where appropriate, measures are referenced to the Provisional Central Product Classification ('CPC') as set out in Statistical Office of the United Nations Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991 ('CPC code') and on the basis of the Services Sectoral Classification List WTO document MTN.GNS/W/120. 2. The Schedule of a Party sets out, pursuant to Paragraph 2 of Article 7 (Application of Articles 4, 5, 6 and 12), the specific sectors, sub-sectors, or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

- (a) Article 4 (Market Access);
- (b) Article 5 (National Treatment);
- (c) Article 6 (Local Presence); or
- (d) Article 12 (Most Favoured Nation Treatment). For greater certainty, Article 4 (Market Access) only refers to non-discriminatory measures. 3. Local Presence and National Treatment are separate disciplines and a measure that is only inconsistent with Local Presence need not be reserved against National Treatment. 4 . Each entry in a Party's Schedule sets out the following elements:

- (a) Sector refers to the sector in which the entry is made;
- (b) Industry Classification refers, for the purpose of clarity, and where applicable, to the activity covered by the entry according to the CPC code;

- (c) Obligations concerned specifies the obligation(s) referred to in Paragraph 2;
- (d) Description sets out the nature and/or scope of the measures in the sectors, sub-sectors or activities covered by the entry; and
- (e) Existing measures are included for transparency purposes. The measures stipulated therein are not exhaustive. 5. Where the title 'cross-border services' is used in the Description element, the entry shall be read to apply to the cross-border mode (Mode 1), the consumption abroad mode (Mode 2), and the presence of natural persons mode (Mode 4) for supply of services. 6. Where the title 'investment' is used in the Description element, the entry shall be read to apply only to the commercial presence mode (Mode 3) for supply of services. 7. Any aspects of such an entry which relate to investment in goods only, are retained solely for transparency purposes. 8. In accordance with Paragraph 2 of Article 7 (Application of Articles 4, 5, 6 and 12), the Articles of this Agreement specified in the Obligations concerned element of an entry do not apply to the sectors, sub-sectors, and activities identified in the Description element of that entry. 9. Where an inconsistency arises in relation to the interpretation of an entry, the Description element of the entry shall prevail to the extent of the inconsistency.

SCHEDULE OF HONG KONG, CHINA

str. 155Sector

All Sectors

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to:

- the provision of public law enforcement, ambulance services, correctional services and fire fighting services; and
- the following, to the extent that they are social services established for a public purpose:
- -health;
- -education;
- -housing;
- -training;
- -transport;
- -public utilities;
- -social security; and
- -social welfare. Sector

Business Services Professional Services Legal Services

Industry Classification

CPC 861

Legal Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to legal services.

str. 157- M - edical and Dental Services

- P - Services provided by Midwives, hysiotherapists and Para-medical Personnel

- O - ther Professional Services*

Sector

Business Services

Professional Services

str. 157Nurses,

Industry Classification

CPC 9312

CPC 93191

Medical and Dental Services

Services provided by Midwives, Nurses, Physiotherapists and Para-medical Personnel

Other Professional Services*

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above.

str. 158* This refers to the services covered by item k. of sub-sector 'A. Professional Services' under the Sector 'Business Services' of MTN.GNS/W/120. Sector

Business Services Research and Development Services

Industry Classification

CPC 851-853

Research and Development Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to research and development services.

str. 159Sector

Business Services Rental/Leasing Services without Operators relating to ships)

(except

Industry Classification

CPC 83104

str. 159CPC 83101, 83102 & 83105

CPC 83106 - 83109

CPC 832

Rental/Leasing Services without Operators relating to Aircraft 16

Rental/Leasing Services without Operators relating to other Transport Equipment

Rental/Leasing Services without Operators relating to other Machinery and Equipment

Other Rental/Leasing Services without Operators

Obligations concerned

str. 159Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

str. 159Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to rental/leasing services without operators that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS . 16 The reservation on rental/leasing services without operators relating to aircraft is without prejudice to the non-application of this Chapter to these services under Paragraph 3 of Article 2 (Scope). Sector

Business Services Other Business Services Services incidental to Mining

Industry Classification

CPC 883+5115

Services incidental to Mining

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to services incidental to mining.

str. 161Energy Business Services Manufacturing Distribution Services Storage and Warehouse Services

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measures with respect to energy services 17 . Activities in the energy services include the importation, generation or manufacture, transmission, distribution, storage, supply, sale and use of energy. 17 Excluding architectural services (CPC 8671), engineering services (CPC 8672), computer and related services (CPC 84), and general construction work for civil engineering (CPC 513). Sector

Communication Services Postal Services

str. 162Industry Classification

CPC 7511

Postal Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to postal services. Sector

Communication Services Courier Services

str. 163Industry Classification

CPC 7512

Courier Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to courier services that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS .

str. 164Communication Services Telecommunication Services - (a) Voice Telephone Services
- (b) Packet-switched Data Transmission Services
- (c) Circuit-switched Data Transmission Services
- (d) Telex Services
- (e) Telegraph Services
- (f) Facsimile Services
- (g) Private Leased Circuit Services
- (o) Other

Market Access (Article 4)

National Treatment (Article 5)

Local Presence (Article 6)

Most Favoured Nation Treatment (Article 12)

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS or with its Revised Offers on Services contained in the WTO document TN/S/O/HKG/Rev.1 of 16 June 2005. Sector

Communication Services Audiovisual Services

Industry Classification

CPC 9613

CPC 7524

Radio and Television Services

Radio and Television Transmission Services

Other Audiovisual Services*

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above.

Industry Classification

str. 166CPC 921

CPC 922

CPC 923

CPC 924

CPC 929

Primary Education Services

Secondary Education Services

Higher Education Services

Adult Education Services

Other Education Services

Obligations concerned

str. 166Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Description

str. 166Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to:

str. 167- adult education services;
- other education services that is inconsistent with Article 4 (Market Access) with respect to Modes 1 to 3; and
- the admission of non-local students with respect to education services with respect to Mode 3, except this does not apply to the admission to international schools of non-local students who are natural persons of New Zealand. International schools are schools which follow a non-local curriculum and whose students do not sit local examinations.

str. 168It generally refers to those schools offering full non-local curricula designed primarily for non-Chinese speaking students and foreign nationals. Sector

Financial Services

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to financial services that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS or with its Revised Offers on Services contained in the WTO document TN/S/O/HKG/Rev.1 of 16 June 2005.

str. 169Sector

Health Related and Social Services

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to health related and social services.

str. 170Sector

Tourism and Travel Related Services

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to tourism and travel related services that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS or with its Revised Offers on Services contained in the WTO document TN/S/O/HKG/Rev.1 of 16 June 2005.

str. 171Sector

Recreational, Cultural and Sporting Services

Industry Classification

CPC 9619

Entertainment Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to entertainment services that is not inconsistent with Hong Kong, China's obligations under Articles XVI, XVII and XVIII of GATS or with its Revised Offers on Services contained in the WTO document TN/S/O/HKG/Rev.1 of 16 June 2005.

str. 173* This refers to the services covered by sub-sector 'E. Other' under the sector 'Recreational, Cultural and Sporting Services' of MTN.GNS/W/120.

str. 174Sector

Recreational, Cultural and Sporting Services Sporting and other Recreational Services

Industry Classification

CPC 96492

Gambling and Betting Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to gambling and betting services.

str. 175Sector

Industry Classification

Obligations concerned

Description

Transport Services Maritime Services

str. 175Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation

str. 175Treatment (Article 12)

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to:

- z cabotage 19 transport; and
- z provision of certain port services

str. 175(pilotage; anchorage, berth and berthing services; towing and tug assistance; provisioning, fuelling and watering; garbage collecting and ballast waste disposal; port captain's services; navigation aids;

str. 175shore-based operational services essential to ship operation, including communications, water and electrical supplies; and emergency repair facilities).

str. 175However, no measures shall be applied which deny international maritime transport service suppliers reasonable and non-discriminatory access to the above port services.

str. 17519 'Cabotage' covers transportation of passengers or goods between a point in Hong Kong, China and another point in Hong

str. 175Kong, China, as well as traffic originating and terminating in the same point in Hong Kong, China provided that this traffic remains within the waters of Hong Kong, China. Sector

Transport Services Internal Waterways Transport

str. 176Industry Classification

CPC 722, including:

CPC 7221

CPC 7222

CPC 7223

CPC 7224

Part of CPC 745

Part of CPC 8868

Passenger Transportation

Freight Transportation

Rental of Vessels with Crew

Pushing and Towing Services

Supporting Services for Internal Waterway Transport

Maintenance and Repair of Vessels

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to internal waterways transport. Sector

Transport Services

Air Transport Services or Related Services in Support of Air Services

Industry Classification

Aircraft repair and maintenance services, as defined in Article 3 (Definitions)

Obligations concerned

Market Access (Article 4) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to aircraft repair and maintenance services.

str. 178Sector

Transport Services Pipeline Transportation Space Transportation Other Transport Services*

Industry Classification

CPC 713

CPC 7131

CPC 7139

CPC 733

Pipeline Transportation, including:

Pipeline Transportation of Fuels

Pipeline Transportation of Other Goods

Space transportation

Other Transport Services*

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above. * This refers to the services covered by sub-sector 'I. Other Transport Services' under the sector 'Transport Services' of MTN.GNS/W/120. Sector

Transport Services Rail Transport Services

str. 179Sector

Transport Services Rail Transport Services

Railway Construction and Project Implementation

Industry Classification

CPC 7111

CPC 7112

CPC 7113

Part of CPC 8868

CPC 743

Rail Passenger Transportation

Rail Freight Transportation

Pushing and Towing Services

Maintenance and Repair of Rail Transport Equipment

Supporting Services for Rail Transport Services

Railway Construction and Project Implementation

Obligations concerned

Market Access (Article 4)

National Treatment (Article 5)

Local Presence (Article 6)

Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above.

str. 180Sector

Transport Services Road Transport Services

Industry Classification

CPC 712, including:

CPC 7121+7122

CPC 7123

CPC 7124

CPC 6112+8867

CPC 744

Road Passenger Transportation

Road Freight Transportation

Rental of Commercial Vehicles with Operator

Maintenance and Repair of Road Transport Equipment

Supporting Services for Road Transport Services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to road transport services. Sector

Transport Services Services Auxiliary to All Modes of Transport

str. 181Industry Classification

CPC 741

CPC 742

Cargo-handling services

Storage and warehousing services including distribution centre services and materials handling and equipment services such as container station and depot services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

Hong Kong, China reserves the right to adopt or maintain any measure with respect to:

- cargo handling services in respect of air 20 and rail; and

- storage and warehousing services, including distribution centre services and materials handling and equipment services such as container station and depot services, in respect of air 21 and rail. 20 The reservation on cargo handling services in respect of air is without prejudice to the non-application of this Chapter to these services under Paragraph 3 of Article 2 (Scope). 21 The reservation on storage and warehousing services in respect of air is without prejudice to the non-application of this Chapter to these services under Paragraph 3 of Article 2 (Scope). Sector

str. 182Sector

Other Services not Included Elsewhere

CPC 95

CPC 97

CPC 98

str. 183Services of Membership Organisations

Industry Classification

Other Services

str. 184Private Households with Employed Persons

CPC 99

Services provided by

str. 185Extraterritorial Organisations and Bodies

Market Access (Article 4) National Treatment

str. 186(Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Obligations concerned

str. 187Cross-Border Services and Investment

Description

str. 188Hong Kong, China reserves the right to adopt or maintain any measure with respect to the services as set out above.

SCHEDULE OF NEW ZEALAND

str. 190All Sectors

Industry Classification

Obligations concerned

Description

Existing measures

str. 190National Treatment (Article 5)

Investment

str. 190New Zealand reserves the right to adopt or maintain any measure that requires the following investment activities to receive prior approval by the New Zealand Government under its overseas investment regime:

- (a) acquisition or control of 25 per cent or more of any class of shares or voting power in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$20 million;
- (b) commencement of business operations or acquisition of an existing business, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$20 million;
- (c) acquisition or control, regardless of dollar value, of certain categories of land that are regarded as sensitive or require specific approval according to New Zealand's Overseas Investment legislation; and
- (d) acquisition, regardless of the dollar value, of 25 per cent or more of any class of shares or voting power in a New Zealand entity that owns commercial fishing quota or annual catch entitlement, or the acquisition of commercial fishing quota or annual catch entitlement. New Zealand reserves the right to adopt or maintain any measure that sets out the approval criteria to be applied to the categories of transactions that require approval under New Zealand's overseas investment regime. Overseas Investment Act 2005 Overseas Investment Regulations 2005 Fisheries Act 1996

Sector

str. 190All sectors

Industry Classification

Obligations concerned

National Treatment (Article 5) Most Favoured Nation Treatment (Article 12) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and Investment

str. 190New Zealand reserves the right to adopt or maintain any measure with respect to:

- the provision of public law enforcement and correctional services; and
- the following, to the extent that they are social services established for a public purpose:
- -child care;
- -health;
- -income security and insurance;
- -public education;
- -public housing;
- -public training;
- -public transport;
- -public utilities;
- -social security and insurance; and
- -social welfare. Sector

All sectors

Industry Classification

Obligations concerned

National Treatment (Article 5) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to water, including the allocation, collection and treatment and distribution of drinking water. This reservation does not apply to the wholesale trade and retail of bottled mineral, aerated and natural water.

str. 190Sector

All Sectors

Industry Classification

Obligations concerned

National Treatment (Article 5) Most Favoured Nation Treatment (Article 12) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and Investment

str. 190New Zealand reserves the right to adopt and maintain the following measures solely as part of the act of devolving a service, that is provided in the exercise of governmental authority at the time this Agreement enters into force:

- restricting the number of service suppliers;
- allowing an enterprise, wholly or majority owned by the Government of New Zealand, to be the sole service supplier or one amongst a limited number of service suppliers;
- imposing restrictions on the composition of senior management and boards of directors;
- requiring local presence; and
- specifying the juridical form of the service supplier(s).

Maritime Auxiliary Services

str. 190To the same extent as set out in the corresponding entries in WTO document TN/S/O/NZL/Rev.1 of 17 June 2005 for:

Customs Clearance Services Container Station and Depot Services Maritime Agency Services

The (*) indicates that the service specified is a component of a more aggregated CPC item specified elsewhere in MTN.GNS/W/120. The (**) indicates that the service specified constitutes only a part of the total range of activities covered by the CPC concordance.

Sector

str. 190All sectors

Industry Classification

Obligations concerned

National Treatment (Article 5) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure regarding the control, management or use of:

- protected areas, including resources on land, interests in land or water, that are set up for heritage management purposes (both historic and natural heritage), public recreation, and scenery preservation; or

- species owned under enactments by the Crown or that are protected by or under an enactment.

Existing measures

str. 190Conservation Act 1987 and the enactments listed in Schedule 1 of the Conservation Act 1987 Resource Management Act 1991

Local Government Act 1974 and subsequent amendments

str. 192- -animal feeds;
- -food standards;
- -biosecurity and
- -biodiversity; and
- -certification of the plant or animal health status of goods. Nothing in this reservation shall be construed to derogate from the obligations of Chapter 7 (Sanitary and Phytosanitary Measures), or the obligations of the Agreement on the Application of Sanitary and Phytosanitary Measures , which is part of the WTO Agreement . Nothing in this reservation shall be construed to derogate from the obligations of Chapter 8 (Technical Barriers to Trade), or the obligations of the Agreement on Technical Barriers to Trade , which is part of the WTO Agreement . Sector

All Sectors

str. 193Industry Classification

Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Description

Cross-Border Services and Investment

New Zealand reserves the right to maintain or adopt any measure made by or under an enactment in respect of the foreshore and seabed, internal waters as defined in international law (including the beds, subsoil and margins of such internal waters) territorial sea, the Exclusive Economic Zone; and for the issuance of maritime concessions in the continental shelf. Existing measures

Resource Management Act 1991 Foreshore and Seabed Act 2004 Resource Management (Foreshore and Seabed) Amendment Act 2004

str. 194Sector

Business Services Legal Services

Industry Classification

CPC 861

Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to the provision of publicly funded legal services.

str. 195Sector

Business Services Fire Services

Industry Classification

CPC 91260*

fire fighting services

*Public administrative, operational and supervision services for fire protection affairs as well as administrative and operational services for fire-fighting and fire prevention by regular and auxiliary fire brigades. Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to the provision of fire fighting services, excluding aerial fire fighting services.

str. 199- as set out in S.296B the Fisheries Act 1996, certain specified functions, duties or powers can only be transferred to approved service delivery organisations that comply with specified criteria; and
- foreign research vessels require the permission of the Minister of Fisheries to take fish, seaweed or aquatic life within the New Zealand Exclusive Economic Zone.

str. 200Sector

Business Services Energy Manufacturing Wholesale trade Retail

Industry Classification

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt any measure in order to prohibit, regulate, manage or control the production, use, distribution or retail of nuclear energy, including setting conditions for any person to do so.

str. 201Business Services

Sector

CPC 8830+5115 Services Incidental to mining

Industry Classification

National Treatment (Article 5) Most-Favoured-Nation Treatment (Article 12) Market Access (Article 4) Local Presence (Article 6)

Obligations concerned

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to services incidental to mining.

Sector

str. 201Business Services Immigration services

Industry Classification

str. 202Obligations concerned

Market Access (Article 4) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt any measures, with respect to licensing requirements and the enforcement of those requirements, including through information sharing, in respect of natural persons who provide immigration advice, to a person in regards to any immigration matter relating to New Zealand.

str. 203For greater transparency, this entry only applies in respect of the Most Favoured Nation Treatment obligation to the extent that New Zealand enters into a reciprocal agreement about information sharing or enforcement of New Zealand's licensing requirements within the country with whom the agreement is made. This reservation does not apply to a natural person of Hong Kong, China who is authorised to practice law in New Zealand. Sector

Communication Services Postal

Industry Classification

CPC 7511

postal services

Obligations concerned

Market Access (Article 4) National Treatment (Article 5) Most Favoured Nation Treatment (Article 12)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to the supply of postal services.

str. 207Industry Classification

** This reservation only applies to kiwifruit

Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measures with respect to the export marketing of fresh kiwifruit to all markets other than Australia. Existing Measures

The Kiwifruit Industry Restructuring Act 1999 and Regulations .

Description

str. 207Distribution Services Wholesale trade and distribution services

National Treatment (Article 5) Market Access (Article 4) reserves the right to adopt or maintain any measures with respect to:

- specifying the terms and conditions for the establishment and operation of any government endorsed allocation scheme for the rights to the

Cross-Border Services and Investment

str. 207distribution of export products falling within the HS categories covered by the WTO Agreement on Agriculture to markets where tariff quotas, country-specific preferences or other measures of similar effect are in force; and

str. 207- the allocation of distribution rights to wholesale trade service suppliers pursuant to the establishment or operation of such an allocation scheme.

str. 207This reservation is not intended to have the effect of prohibiting all investment in the provision of wholesale trade and distribution services relating to goods in the HS chapters covered by the WTO Agreement on Agriculture .

str. 207The entry applies in respect of investment to the extent that the services sectors specified in this reservation are a subset of agricultural products subject to tariff quotas, country-specific preferences or other measures of similar effect.

Existing Measures

str. 207Distribution Services Commission agents' services Wholesale trade services

National Treatment (Article 5) Market Access (Article 4)

Cross-Border Services and Investment

str. 207New Zealand reserves the right to maintain or adopt any measures necessary to give effect to the establishment or the implementation of mandatory marketing plans (also referred to as 'export marketing strategies') for the export marketing of products derived from:

- agriculture;
- beekeeping;
- horticulture;
- arboriculture;
- arable farming; and
- the farming of animals

where there is support within

str. 208the relevant industry that a mandatory collective marketing plan should be adopted or activated. For the avoidance of doubt, mandatory marketing plans, in the context of this reservation exclude measures limiting the number of market participants or limiting the volume of exports. New Zealand Horticulture Export

str. 209Authority Act 1987

Sector

Education Services

Industry Classification

CPC 923

CPC 924

Higher education services

Adult education services n.e.c.

str. 210Obligations concerned

National Treatment (Article 5) Market Access (Article 4)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measure with respect to the use of statutorily protected educational terms and titles. Existing Measures

In the interests of greater transparency such terms include: 'university', 'college of education', 'polytechnic' and 'institute of technology' as set out in S.292 and S.294 of the Education Act 1989

str. 211Sector

Financial Services

Industry Classification

Obligations concerned

National Treatment (Article 5) Most Favoured Nation Treatment (Article 12) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and

str. 212Investment

New Zealand reserves the right to adopt or maintain any measure with respect to financial services as defined in the GATS Annex on Financial Services that is not inconsistent with New Zealand's obligations under Articles XVI, XVII and XVIII of GATS .

str. 213Sector

Health and Social services Social services

Industry Classification

str. 213Obligations concerned

National Treatment

str. 213(Article 5) Most Favoured Nation Treatment (

str. 213Article 12) Market Access (Article 4) Local

str. 213Presence (Article 6)

Description

str. 213Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any

str. 213measure with respect to all modes for the supply of adoption services.

str. 213Sector

Health and Social services Health services

CPC 9311*

str. 213CPC 93191**

CPC 93199

Hospital services

Deliveries and related services, nursing services, physiotherapeutic and para-medical services

Other Human Health Services

Industry Classification

* This is not intended to apply to services provided by nurses, physiotherapists and para-medical personnel in a hospital setting. ** This includes services such as supervision during pregnancy and child birth and the supervision of the mother after birth. Obligations concerned

Most Favoured Nation Treatment (Article 12) Market Access (Article 4) National Treatment (Article 5) Local Presence (Article 6)

Description

str. 215An indicative list of services or investment activities that would come within in the scope of 'cultural heritage of national value' includes: ethnological, archaeological, historical, literary, artistic, scientific or technological heritage, as well as collections that are documented, preserved and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions. Obligations concerned

National Treatment (Article 5) Most Favoured Nation Treatment (Article 12) Market Access (Article 4) Local Presence (Article 6)

Description

Cross-Border Services and Investment

New Zealand reserves the right to adopt or maintain any measures in respect of:

- cultural heritage of national value; including ethnological, archaeological, historical, literary, artistic, scientific or technological heritage, as well as collections that are documented, preserved and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions;
- public archives;
- library and museum services; and
- services for the preservation of historical or sacred sites or historical buildings. Transport Maritime Services

Sector

Industry Classification

National Treatment (Article 5) Most Favoured Nation Treatment (Article 1

str. 2162) Market Access (Article 4)

Obligations concerned

Cross-Border Services and Investment

Description

New Zealand reserves the right to adopt or maintain any measure with respect to:

- the carriage by sea of passengers and/or cargo between a port located in New Zealand and another port located in New Zealand and traffic originating and terminating in the same port in New Zealand ('maritime cabotage');
- provision of certain Port Services (pilotage, towing and tug assistance provisioning, fuelling and watering, garbage collecting and ballast waste disposal, port captains' services, navigation aids, emergency repair facilities, anchorage, other shore-based operational services essential to ship operations, including communications, water and electrical supplies). However no measures shall be applied which deny international maritime transport suppliers reasonable and non-discriminatory access to the above port services;
- the establishment of registered companies for the purpose of operating a fleet under the New Zealand flag;
- the registration of vessels in New Zealand; and
- the regulation and entry of ships crews to New Zealand through the presence of natural person mode of supply.

Introduction

str. 2171. The purpose of the disciplines in this Annex is to facilitate trade in services by ensuring that measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards do not constitute unnecessary barriers to trade in services. In applying the disciplines in this Annex, the Parties shall also comply with the criteria set out in Paragraphs 4(a) to (c) of Article 9 (Domestic Regulation). 2. The Parties recognise the right of each Party to regulate, and to introduce new regulations to support government policy objectives.

Definitions

General Provisions

str. 2184. The disciplines in this Annex apply to measures adopted or maintained by the Parties relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards affecting trade in services. 5. Nothing in this Annex shall apply to any measure adopted or maintained by a Party consistent with its Schedules to Annexes I and II. 6. The Parties shall ensure that measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards are not formulated, introduced, implemented, administered or applied with a view to creating unnecessary barriers to trade in services. 7. The Parties shall ensure that measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards shall be pre-established, based on objective and transparent criteria and relevant to the supply of the services to which they apply. 8. Nothing in these disciplines prevents either Party from exercising its right to introduce or maintain regulations in order to ensure provision of universal service, in a manner consistent with its obligations and commitments under this Chapter.

Transparency

str. 2199. Each Party shall ensure that measures of general application relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards, as well as detailed information regarding these measures, are promptly published through printed or electronic means, or otherwise. Where publication is not practicable, such information shall be made publicly available.

str. 220This information shall include:

- (a) whether any authorisation, including application and/or renewal where applicable, is required for the supply of a service;
- (b) the official titles, addresses and contact information of relevant competent authorities;
- (c) applicable licensing requirements and criteria, terms and conditions of licences, and licensing procedures and fees;
- (d) applicable qualification requirements, criteria and procedures for verification and assessment of qualifications, including fees;
- (e) applicable technical standards;
- (f) procedures relating to appeals or reviews of applications; - (g) monitoring, compliance or enforcement procedures, including notification procedures for non-compliance;
- (h) where applicable, how public involvement in the licensing process, such as hearings and opportunity for comment, is provided for;
- (i) exceptions, derogations or changes to measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards; and
- (j) the normal timeframe for processing of an application. 10. Each Party shall maintain or establish appropriate mechanisms for responding to enquiries from any service suppliers regarding any measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards. Such enquiries may be addressed through the contact points established under Article 5 (Contact Points) of Chapter 15 (Transparency).

Licensing Requirements

str. 22011. Where residency requirements for licensing exist, each Party shall consider whether less trade restrictive means could be employed to achieve the purposes for which these residency requirements were established.

Licensing Procedures

str. 221Each Party shall ensure that licensing procedures, including application procedures and, where applicable, renewal procedures, are as simple as possible, are not more burdensome than necessary to ensure that applicants fulfil or

comply with the licensing requirements, and do not in themselves constitute a restriction on the supply of services.

str. 22113. Each Party shall ensure that the procedures used by, and the decisions of, the competent authority in the licensing process ('competent authority') are impartial with respect to all applicants. The competent authority should be operationally independent of and not accountable to any supplier of the services for which the licence is required. 14. An applicant should be required to approach only one competent authority for an application for a licence. 15. An applicant should be permitted to submit an application at any time, except where licences are limited in numbers, including in public tendering. Where specific time periods for applications exist, an applicant shall be allowed a reasonable period for the submission of an application. The competent authority shall initiate the processing of an application without undue delay. Where possible, applications should be accepted in electronic format under the same conditions of authenticity as paper submissions. 16. The competent authority shall, within a reasonable period of time after receipt of an application which it considers incomplete, inform the applicant and, to the extent feasible, identify the additional information required to complete the application, and, where appropriate, provide the opportunity to correct deficiencies. 17. The competent authority shall, where appropriate, accept copies of documents authenticated in accordance with its domestic law in place of original documents. 18. If an application for a licence is rejected by the competent authority, the applicant shall be informed in writing and without undue delay. In principle, the applicant shall, upon request, also be informed of the reasons for rejection of the application and of any rights of review of, or appeal

against, the decision, including the timeframe for review or appeal. An applicant should be permitted, within reasonable time limits, to resubmit an application.

str. 22219. Each Party shall ensure that the processing of an application for a licence, including reaching a final decision, is completed within a reasonable timeframe from the submission of a complete application. Each Party shall endeavour to establish the normal timeframe for processing of an application. 20. Each Party shall ensure that a licence, once granted, enters into effect without undue delay in accordance with the terms and conditions specified therein. 21. Each Party shall ensure that any licensing fees 23 are determined with regard to the administrative costs involved. This shall not preclude the recovery of any additional costs of administering licensing requirements and any other administrative activities related to the regulation of the relevant services.

Qualification Requirements

str. 22222. Where a Party imposes qualification requirements for the supply of a service, it shall ensure that adequate procedures exist for the verification and assessment of qualifications held by service suppliers of the other Party. In verifying and assessing qualifications, the competent authority shall, where appropriate, give due consideration to relevant professional experience of the applicant as a complement to educational qualifications. Where membership in a relevant professional association in the Area of another Party is indicative of the level of competence

23 Licensing fees do not include payments for auction, tendering or other non-discriminatory means of awarding concessions, or mandated contributions to universal service provision.

str. 223or extent of experience of the applicant, such membership shall also be given due consideration. 23. Provided an applicant has presented all necessary supporting evidence of qualifications, the competent authority, in verifying and assessing qualifications, shall, to the extent possible, identify any deficiency and inform the applicant of requirements to meet the deficiency. Such requirements may include course work, examinations, training, and work experience. Where appropriate, each Party shall provide the possibility for applicants to fulfil such requirements in the home, host or any third jurisdiction. 24. Residency requirements, other than those consistent with a Party's Schedules to Annexes I and II shall not be a pre-requisite for assessing and verifying the competence of a service supplier of the other Party. 25. Each Party shall ensure that a service supplier is informed without undue delay when qualification requirements have been fulfilled.

Qualification Procedures

str. 22326. Each Party shall ensure that qualification procedures are as simple as possible, are not more burdensome than necessary to ensure that applicants meet the qualification requirements, and do not in themselves constitute a restriction on the supply of services. 27. An applicant should be required to approach only one competent authority for qualification procedures. 28. An applicant should be permitted to submit an application at any time. The competent authority shall initiate the processing of an application without undue delay. 29. Where examinations are required, each Party shall ensure that they are scheduled at reasonably frequent

intervals. Applicants for examinations shall be allowed a reasonable period to submit applications.

str. 22430. The competent authority shall, within a reasonable period of time after receipt of an application which it considers incomplete, inform the applicant and, to the extent feasible, identify the additional information required to complete the application, and, where appropriate, provide the opportunity to correct deficiencies. 31. The competent authority shall, where appropriate, accept copies of documents authenticated in accordance with its domestic law in place of original documents. 32. If an application for verification and assessment of qualification is rejected by the competent authority, the applicant shall be informed in writing and without undue delay. In principle, the applicant shall, upon request, also be informed of the reasons for rejection of the application and of any rights of review of, or appeal against, the decision, including the timeframe for review or appeal. An applicant should be permitted, within reasonable time limits, to resubmit an application. 33. Each Party shall ensure that the processing of an application, including verification and assessment of a qualification, is completed within a reasonable timeframe from the submission of a complete application. Each Party shall endeavour to establish the normal timeframe for processing of an application. 34. Each Party shall ensure that any fees charged for qualification procedures are determined with regard to the administrative costs involved. This shall not preclude the recovery of any additional costs of administering qualification requirements and any other administrative activities related to the regulation of the relevant services.

Technical Standards

str. 22535. Each Party shall ensure that technical standards are not prepared or adopted with a view to creating unnecessary obstacles to trade in services. For this purpose, each Party shall ensure that such technical standards are based on objective and transparent criteria and are relevant to meet specific government policy objectives. 36. Each Party shall ensure that any measures relating to the application, monitoring, compliance and enforcement of technical standards are not more burdensome than necessary to ensure that a service conforms with the relevant technical standards, taking into account the risks that non-fulfilment would create. 37. The Parties shall encourage maximum transparency of relevant processes relating to the development and application of domestic and international standards by non-governmental bodies. 38. Where technical standards are required and relevant international standards are applicable or their completion is imminent, the Parties should take them or the relevant parts of them into account in formulating their technical standards, except when such international standards or relevant parts would be an ineffective or inappropriate means for the fulfilment of specific government policy objectives.

Introduction

str. 2261. The objectives of this Annex are to:
2. (a) strengthen bilateral relations between the Parties in the field of education;
3. (b) reflect the importance of education as a factor of social and economic development as well as a means for facilitating a closer economic partnership between the Parties; and
4. (c) recognise that cooperation in the field of education benefits both economies,

while respecting the autonomy of higher education institutions of the Parties in carrying out any collaborative activities and in admission of students in accordance with their relevant policies and regulations.

General Provisions

str. 2262. In accordance with the domestic laws in force in their Areas, the Parties shall promote mutual cooperation in education. 3. The Parties shall encourage and facilitate, as appropriate, the development of contacts and cooperation between government agencies, educational institutions, organisations and other entities of Hong Kong, China and New Zealand, and the conclusion of arrangements between such bodies for the conduct of cooperative activities.

Education Cooperation

str. 2274. The Parties shall:

- (a) encourage their respective academic and vocational accreditation authorities to enter into discussions and dialogue with the purpose of developing greater understanding of and confidence in each others' quality assurance and qualifications recognition processes; and
- (b) enter into an Arrangement to be between the Education Bureau of Hong Kong, China and the Ministry of Education of New Zealand which will provide the framework to achieve the following goals:
- (i) facilitate the exchange of publicly-available expertise, knowledge and experience in the field of education;
- (ii) promote cooperation in areas of interest in vocational education;
- (iii) encourage the development of joint programmes with institutions of educational excellence that will mutually benefit the Parties;
- (iv) promote exchanges of staff between education agencies and institutions in relation to programmes that will mutually benefit the Parties; and
- (v) undertake other forms of cooperation as may be mutually determined.

CHAPTER 14

MOVEMENT OF BUSINESS PERSONS

Article 1 Objectives

str. 228The objectives of this Chapter are to:

- (a) facilitate the movement of business persons of either Party engaged in the conduct of trade and investment between the Parties;
- (b) establish streamlined and transparent immigration procedures for applications made by business persons of the other Party; and
- (c) provide for rights and obligations additional to those set out in Chapter 13 (Trade in Services) and Chapter 3 (Trade in Goods) in relation to the movement of natural persons between the Parties for business purposes,

while recognising the need to ensure border security and to protect the domestic labour force and employment in the Areas of the Parties.

Article 2 Scope

str. 229This Chapter shall apply to measures affecting the temporary entry of business persons of one Party into the Area of the other Party, where such persons include:

- (a) business visitors;
- (b) intra-corporate transferees;
- (c) independent service suppliers; and - (d) installers or servicers. 2. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of the other Party, nor shall it apply to measures regarding citizenship, nationality, residence or employment on a permanent basis. 3. Nothing in this Chapter or Chapter 13 (Trade in Services) 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 Area, 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 the terms of this Chapter. The sole fact of a Party requiring an immigration formality in respect of natural persons of the other Party and not those of non-Parties shall not be regarded as nullifying or impairing benefits accruing to the other Party under the terms of this Chapter.

Article 3 Definitions

str. 232This does not include a first-line supervisor unless the employees supervised are professionals, nor does this include an employee who primarily performs tasks necessary for the provision of the service or operation of an investment;
- (h) specialist means a natural person of a Party within an organisation of a Party who:
- (i) possesses knowledge at an advanced level of technical expertise; - (ii) possesses proprietary knowledge of the organisation's service, research equipment, techniques or management; and
- (iii) is essential to the operation of the concerned service supplier's or investor's establishment in the Area of the other Party; and
- (i) temporary entry means entry by a business person covered by this Chapter, without the intent to establish permanent residence.

Article 4 Grant of Temporary Entry

str. 2321. The Parties shall make commitments in respect of the temporary entry of business persons covered by Article 2. Each Party shall set out in Annex I a Schedule containing such commitments. These Schedules shall specify the conditions and limitations for entry and temporary stay, including the requirements and length of stay, for each category of business persons included in each Party's Schedule of commitments. 2. Where a Party makes a commitment under Paragraph 1, that Party shall grant temporary entry or extension of temporary stay to the extent provided for in that commitment, provided that those business persons:

- (a) follow prescribed application procedures for the immigration formality sought; and
- (b) meet all relevant eligibility requirements for entry to the granting Party. 3.

str. 233Temporary entry granted to a business person pursuant to this Chapter does not exempt that person from the requirements needed to carry out a profession or activity according to the domestic law, and any applicable mandatory

codes of practice made pursuant to the domestic law, in force in the Area of the Party authorising the temporary entry.

str. 2334. Any fees imposed in respect of the processing of an immigration formality shall be reasonable and in accordance with domestic law. 5. Neither Party may, except as provided for in its Schedule of commitments set out in Annex I, impose or maintain any numerical restriction relating to temporary entry as a condition for entry under Paragraph 1.

Article 5 Expeditious Application Procedures

str. 2331. Where an application for an immigration formality is required by a Party, the Party shall process expeditiously completed applications for immigration formalities or extensions thereof received from business persons of the other Party covered by Paragraph 1 of Article 2. 2. A Party shall, within ten working days of receipt of an application for temporary entry that has been completed and submitted in accordance with its domestic law, either:

- (a) make a decision on the application and inform the applicant of the decision including, if approved, the period of stay and other conditions; or
- (b) if a decision cannot be made in that time period, inform the applicant when a decision will be made. 3. At the request of an applicant, a Party in receipt of a completed application for temporary entry shall provide, without undue delay, information concerning the status of the application. Each Party shall:

- (a) publish, such as on the website of its immigration authority, the requirements for temporary entry under this Chapter, including explanatory material and relevant forms and documents that will enable business persons of the other Party to become acquainted with the Party's requirements; and
- (b) upon modifying or amending the requirements for temporary entry referred to in subparagraph (a) that affect the temporary entry of business persons, ensure that the information published pursuant to subparagraph (a) is updated by the date that modification or amendment comes into effect.

Article 7 Dispute Settlement

str. 2341. Any differences or disputes arising out of the implementation of this Chapter shall be settled amicably through consultations or negotiations between the Parties. 2. Neither Party shall have recourse to Chapter 16 (Dispute Settlement) regarding a refusal to grant temporary entry under this Chapter unless:

- (a) the matter involves a pattern of practice; and
- (b) the business person has exhausted all available administrative remedies regarding the particular matter.

Article 8 Contact Points

str. 2351. Each Party shall designate a contact point to facilitate communication and the effective implementation of this Chapter, and respond to inquiries from the other Party regarding regulations affecting the movement of business persons between the Parties or any matters covered in this Chapter, and shall provide details of this contact point to the other Party. 2. The Parties shall notify each other promptly of any amendments to the details of their contact points.

SCHEDULE OF HONG KONG, CHINA

str. 238| 9409 |

SCHEDULE OF NEW ZEALAND 1. The following sets out New Zealand's commitments in accordance with Article 4 (Grant of Temporary Entry) in respect of the temporary entry of business persons, including the presence of natural persons mode (Mode 4).

str. 2382. For greater certainty, New Zealand reserves the right to adopt or maintain any measure in respect of the supply of a service by a service supplier of Hong Kong, China through presence of natural persons of Hong Kong, China in the Area of New Zealand (Mode 4) except as set out in these commitments. | Entry in the following categories only | Conditions (including duration of stay)

str. 244With respect to audiovisual services, the New Zealand immigration policy, based on the Immigration Act 1987 and the Immigration Regulations 1999, stipulates a special procedure for the granting of visas to entertainers, performing artists and associated support personnel for work purposes. To be eligible for a work visa or work permit, such applicants must come within the policy guidelines agreed to between the Minister of Immigration, independent promoters, agents or producers and the relevant performing artists' unions. 5. All the commitments in respect of the presence of natural persons mode in New Zealand's Schedule of Specific Commitments in the WTO (as currently set out in GATS/SC/62, GATS/SC/62/Suppl.1, and GATS/SC/62/Suppl.2), including any requirements, regulations and additional commitments, apply to the service suppliers of Hong Kong, China.

TRANSPARENCY

Article 1 Definitions

Article 2 Publication

str. 2451. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings of general application with respect to any matter covered by this Agreement are promptly, but in no case later than 90 days after implementation or enforcement, published or otherwise made available 26 to interested persons and the other Party. 2. When possible, each Party shall:

26 Including through the internet or in print form.

str. 246- (a) publish in advance any measure referred to in Paragraph 1 that it proposes to adopt; and
- (b) provide, where appropriate, interested persons and the other Party with a reasonable opportunity to comment on such proposed measures.

Article 3 Cooperation on Business Law

Article 4 Review and Appeal

str. 2471. Each Party shall, where warranted, establish or maintain judicial, quasi-judicial or administrative tribunals, or procedures, for the purpose of the prompt review and correction of final administrative actions regarding matters covered by this Agreement, other than those taken for prudential reasons. Such tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter. 2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceedings are provided with the right to:

- (a) a reasonable opportunity to support or defend their respective positions; and
- (b) a decision based on the evidence and submissions of record or, where required by domestic law, the record compiled by the administrative authority. 3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that decisions referred to in Paragraph 1 shall be implemented by, and shall govern the practice of, the offices or authorities with respect to the administrative action at issue .

Article 5 Contact Points

str. 2471. Each Party shall designate a contact point or points, and provide details of such contact points to the other Party, to facilitate communications between the Parties on any matter covered by this Agreement.

str. 2482. The Parties shall notify each other promptly of any amendments to the details of their contact points. 3. Each Party shall ensure that its contact points are able to coordinate and facilitate a response on any matter covered by this Agreement, including any enquiries referred to in Article 7. 4. At the request of either Party, the contact points of the other Party shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communications with that Party.

Article 6 Administrative Proceedings

str. 249With a view to administering in a consistent, impartial and reasonable manner all measures affecting matters covered by this Agreement, each Party shall ensure, in its administrative proceedings applying measures referred to in Paragraph 1 of Article 2 to particular persons, goods, or services of the other Party in specific cases, that:

- (a) wherever possible, persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated, and a general description of any issues in question;
- (b) persons of the other Party that are directly affected by a proceeding are afforded a reasonable opportunity to present facts and arguments in support of their positions prior to any final administrative action, when time, the nature of the proceeding, and the public interest permit; and (c) its procedures are in accordance with domestic law.

Article 7 Notification and Provision of Information

str. 2491. Where a Party considers that any actual or proposed measure might materially affect the operation of this Agreement or otherwise substantially affect the other Party's interests under this Agreement, that Party shall notify the other Party, to the extent possible, of the actual or proposed measure. 2. On request of the other Party, the requested Party shall within 30 days of receipt of the request provide information and respond to questions pertaining to any actual or proposed measure. 3. Any notification, request, information or response provided under this Article shall be conveyed to the other Party through its contact points. 4. The notification referred to in Paragraph 1 shall be regarded as having been conveyed in accordance with Paragraph 3 when the actual or proposed measure has been notified to the WTO in accordance with the WTO Agreement . 5. Any notification, information or response provided under this Article shall be without prejudice as to whether the measure is consistent with this Agreement.

DISPUTE SETTLEMENT

Article 1 Objectives

str. 250The objective of this Chapter is to provide an effective, efficient and transparent process for consultations and the settlement of disputes arising under this Agreement.

Article 2 Scope and Coverage

str. 2501. Except as otherwise provided in this Agreement, this Chapter shall apply:

- (a) with respect to the avoidance or settlement of disputes between the Parties regarding the interpretation or application of this Agreement;
- (b) wherever a Party considers that an actual measure of the other Party is not or would not be in conformity with the obligations of this Agreement or that the other Party has otherwise failed to carry out its obligations under this Agreement; or
- (c) wherever a Party considers that any benefit it could reasonably have expected to accrue to it under any provision of this Agreement is being nullified or impaired as a result of the application of any actual measure that is not inconsistent with this Agreement. 2. For the avoidance of doubt, the Parties agree that this Agreement shall be interpreted in accordance with the customary rules of treaty interpretation of public international law and consistently with the objectives set out in Article 2 (Objectives) of Chapter 1 (Initial Provisions).

Article 3 Choice of Forum

str. 2511. Where a dispute regarding any matter arises under this Agreement and under another agreement to which both Parties are party, the complaining Party may select the forum in which to settle the dispute. 2. Once the complaining Party has selected a particular forum, the forum selected shall be used to the exclusion of other possible fora in respect of the dispute. 3. For the purposes of this Article, the complaining Party shall be deemed to have selected a forum when it has requested the establishment of, or referred a matter to, a dispute settlement panel or arbitral tribunal. 4. Except as provided in this Article, this Chapter is without prejudice to the rights of the Parties to have recourse to dispute settlement procedures available under other agreements to which they are party.

Article 4 Consultations

str. 2511. Each Party shall accord adequate opportunity for consultations with respect to any matter affecting the implementation, interpretation or application of this Agreement. Any differences shall, as far as possible, be settled by consultation between the Parties. 2. A request for consultations shall be submitted in writing and shall give the reasons for the request, including identification of any actual measure or other matter at issue and an indication of the legal basis for the complaint. The complaining Party shall deliver the request to the other Party.

str. 2523. If a request for consultations is made, the Party to which the request is made shall reply to the request in writing within seven days after the date of its receipt and shall enter into consultations in good faith, with a view to reaching a mutually satisfactory solution within a period of no more than:

- (a) 15 days after the date of receipt of the request for urgent matters, including those concerning perishable goods; or
- (b) 30 days after the date of receipt of the request for all other matters. 4. The Parties shall make every effort to reach a mutually satisfactory resolution of any matter through consultations. In conducting the consultations, the Parties shall:

- (a) provide sufficient information to enable a full examination of how the actual measure or other matter might affect the operation or application of this Agreement; and
- (b) treat any information exchanged in the course of consultation which is designated by a Party as confidential or proprietary in nature on the same basis as the Party providing the information. 5. If the responding Party does not reply within the required seven days, or does not enter into consultations within the timeframes specified in Paragraph 3(a) or (b), or a period otherwise mutually agreed by the Parties, the complaining Party may proceed directly to request the establishment of an arbitral tribunal under Article 6. 6. The consultations shall be confidential, and without prejudice to the rights of either Party in any further proceedings.

str. 2537. The complaining Party may request the responding Party to make available for the consultations personnel from its government agencies or other regulatory bodies who have expertise in the matter under consultation.

Article 5 Good Offices, Conciliation or Mediation

str. 2531. The Parties may at any time agree to good offices, conciliation or mediation. They may begin at any time and be terminated at any time. 2. Proceedings involving good offices, conciliation and mediation, and in particular positions taken by the Parties during those proceedings, shall be confidential and without prejudice to the rights of either Party in any further proceedings.

Article 6 Establishment of an Arbitral Tribunal

str. 2531. The complaining Party may request, by means of a written notification addressed to the other Party, the establishment of an arbitral tribunal if:

- (a) the consultations fail to settle a dispute within:
- (i) 30 days after the date of receipt of the request for consultations regarding urgent matters, including those concerning perishable goods; or
- (ii) 60 days after the date of receipt of the request for consultations regarding all other matters; or
- (b) Paragraph 5 of Article 4 applies. 2. The Parties may agree during the consultations to vary the periods set out in Paragraph 1(a).

str. 2543. The request to establish an arbitral tribunal shall identify:
2. (a) the specific measures at issue;
3. (b) the legal basis of the complaint sufficient to present the problem clearly including, where applicable:
4. (i) any provisions of this Agreement alleged to have been breached;
5. (ii) whether there is a claim for nullification and impairment; and
6. (iii) any other relevant provisions; and
7. (c) the factual basis for the complaint. 4. Unless otherwise agreed by the Parties, the arbitral tribunal shall be established and perform its functions in a manner consistent with this Chapter.

Article 7 Composition of Arbitral Tribunals

str. 2541. The arbitral tribunal shall consist of three members. 2. Each Party shall appoint an arbitrator within 21 days of the receipt of the request to establish an arbitral tribunal. 3. The Parties shall appoint by common agreement the third arbitrator within 30 days of the receipt of the request to establish an arbitral tribunal. The arbitrator thus appointed shall chair the arbitral tribunal. 4. The chair shall be a national of a non-Party who shall not have his or her usual place of residence in the Area of either of the Parties.

str. 2555. If all three members of the arbitral tribunal have not been appointed within 30 days of receipt of the request to establish an arbitral tribunal, the Director-General of the WTO shall, at the request of either Party, make the necessary appointments within 30 days of the request to the Director-General of the WTO. 6. All arbitrators shall:

- (a) have expertise or experience in law, international trade, other matters covered by this Agreement, or the resolution of disputes arising under international trade agreements;
- (b) be chosen strictly on the basis of objectivity, reliability, and sound judgment;
- (c) be independent of, and not be affiliated with or take instructions from, either Party;
- (d) not have dealt with the matter under dispute in any capacity; and
- (e) comply with the code of conduct for panellists established under the WTO Dispute Settlement Understanding . 7. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator is appointed. 8. If an arbitrator appointed under this Article resigns or becomes unable to act, a successor arbitrator shall be appointed, within 21 days from the date written notice is received by the Parties of the need for a successor, in the same manner as prescribed for the appointment of the original arbitrator and the successor shall have all the powers and duties of the original arbitrator. The work of the arbitral tribunal shall be suspended pending the appointment of the successor arbitrator.

str. 2569. Where an arbitral tribunal is established under Articles 12, 13 or 15, it shall, where possible, have the same arbitrators as the original arbitral tribunal. Where this is not possible, any replacement arbitrator shall be appointed in the same manner as prescribed for the appointment of the original arbitrator and shall have all the powers and duties of the original arbitrator. Where special circumstances warrant, the arbitral tribunal may comprise only the chair of the original arbitral tribunal if the Parties so agree.

Article 8 Functions of Arbitral Tribunals

str. 2561. The function of an arbitral tribunal is to make an objective assessment of the dispute before it, including an objective assessment of the facts of the case and the applicability of and conformity with this Agreement, and make such other findings and rulings necessary for the resolution of the dispute referred to it as it thinks fit. 2. The arbitral tribunal shall, apart from the matters set out in Article 9, make decisions in order to regulate its own procedures in relation to the rights of the Parties to be heard and its deliberations, in consultation with the Parties. 3. The arbitral tribunal shall make its decisions to which Paragraph 2 applies and its findings and rulings by consensus, provided that where an arbitral tribunal is unable to reach consensus these may be made by majority vote. The arbitral tribunal shall not disclose which arbitrators are associated with majority or minority opinions. 4. The findings and rulings of the arbitral tribunal cannot add to or diminish the rights and obligations provided in this Agreement.

Article 9 Proceedings of Arbitral Tribunals

str. 2571. The arbitral tribunal proceedings shall be conducted in accordance with this Chapter and, unless the Parties agree otherwise, the Model Rules of Procedure for Arbitral Tribunals in Annex I. 2. Unless the Parties otherwise agree within 20 days from the date of receipt of the request for the establishment of the arbitral tribunal, the terms of reference shall be:

' A e a w d To examine, in the light of the relevant provisions of this greement, the matter referred to in the request for the stablishment of an arbitral tribunal pursuant to Article 6 nd to make findings and rulings of law and fact together ith the reasons therefore for the resolution of the ispute.' 3. At the request of either Party or on its own initiative, the arbitral tribunal may seek information and technical advice from any individual or body which it deems appropriate. Any information or technical advice so obtained shall be submitted to the Parties for comment. Where the arbitral tribunal takes the information or technical advice into account in the preparation of its report, it shall also take into account any comments by the Parties on the information or technical advice.

Article 10 Termination of Proceedings

str. 2571. The Parties may agree to terminate the proceedings of an arbitral tribunal in the event that a mutually satisfactory solution to the dispute has been found. In such event the Parties shall jointly notify the chair of the arbitral tribunal. 2.

str. 258The Parties may agree that the arbitral tribunal suspend its work at any time for a period not exceeding 12 months

from the date of such agreement. In such event the Parties shall jointly notify the chair of the arbitral tribunal. If the work of the arbitral tribunal has been suspended for more than 12 months, the authority for establishment of the arbitral tribunal shall lapse unless the Parties agree otherwise.

Article 11 Reports of the Arbitral Tribunal

str. 2581. The reports of the arbitral tribunal shall be drafted without the presence of the Parties and shall be based on the relevant provisions of this Agreement, the submissions and arguments of the Parties and any other information provided to the arbitral tribunal pursuant to Paragraph 3 of Article 9. 2. The arbitral tribunal shall present its initial report to the Parties within 90 days of the date of establishment of the arbitral tribunal or in cases of urgency, including those concerning perishable goods, within 60 days of the date of establishment of the arbitral tribunal. The initial report shall contain:

- (a) findings of fact; and
- (b) the determination of the arbitral tribunal as to whether a Party has not conformed with its obligations under this Agreement or that a Party's measure is causing nullification or impairment in the sense of Paragraph 1(c) of Article 2 and any other determination requested in the terms of reference or required to perform its functions under Article 8. 3. In exceptional cases, if the arbitral tribunal considers it cannot present its initial report within 90 days, or within 60 days in cases of urgency, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will present its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree.

str. 2594. A Party may submit written comments on the initial report to the arbitral tribunal within ten days of receiving the initial report or within such other period as the Parties may agree. 5. After considering any written comments by the Parties and making any further examination it considers necessary, the arbitral tribunal shall present its final report to the Parties within 30 days of presentation of the initial report, unless the Parties otherwise agree. 6. If in its final report, the arbitral tribunal finds that a Party's measure does not conform with this Agreement or is causing nullification or impairment in the sense of Paragraph 1(c) of Article 2, it shall include in its findings and rulings a requirement to remove the non-conformity or address the nullification or impairment. 7. The Parties shall release the final report of the arbitral tribunal as a public document within 15 days from the date of its presentation to the Parties, subject to the protection of confidential information.

Article 12 Implementation

str. 2591. The findings and rulings of the arbitral tribunal shall be final and binding on the Parties. 2. The Parties shall promptly comply with the findings and rulings of the arbitral tribunal. Where it is not practicable to comply immediately, the Party concerned shall comply with the findings and rulings within a reasonable period of time. The reasonable period of time shall be mutually determined by the Parties. As a guideline, the reasonable period of time should not exceed 12 months from the date of the presentation of the arbitral tribunal's final report to the Parties.

str. 260Where the Parties fail to agree on the reasonable period of

time within 45 days of the presentation to the Parties of the arbitral tribunal's final report, either Party may refer the matter, in accordance with Paragraph 9 of Article 7, to the original arbitral tribunal, which shall determine the reasonable period of time following consultation with the Parties.

str. 2603. The arbitral tribunal shall present its report to the Parties within 60 days of the date on which the arbitral tribunal is established, in accordance with Paragraph 7 of Article 7, to consider the matter referred to in Paragraph 2. The report shall contain the determination of the arbitral tribunal as to the reasonable period of time and the reasons for its determination. When the arbitral tribunal considers that it cannot present its report within this timeframe, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will present its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree.

Article 13 Compliance within Reasonable Period of Time

str. 2601. Where there is disagreement as to the existence or consistency with this Agreement of measures taken within a reasonable period of time to comply with the findings and rulings of the arbitral tribunal, such disagreement shall be decided through recourse to the dispute settlement procedures in this Chapter, including wherever possible by resort to the original arbitral tribunal, in accordance with Paragraph 9 of Article 7. 2. The arbitral tribunal shall present its report to the Parties within 90 days of the date on which the arbitral tribunal is established to consider the dispute on compliance within a reasonable period of time referred to in Paragraph 1.

str. 260When the arbitral tribunal considers that it cannot present its report within this timeframe, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the

period within which it will present its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree.

Article 14 Compensation and Suspension of Benefits

str. 260If a failure to comply with the findings and rulings of the arbitral tribunal has been established in accordance with Paragraph 1 of Article 13 or the responding Party notifies the other Party in writing that it does not intend to comply with the findings and rulings, the responding Party shall, if so requested, enter into negotiations with the complaining Party within ten days of the receipt of such request with a view to reaching a mutually satisfactory agreement on any necessary compensatory adjustment. 2. If no mutually satisfactory agreement on compensatory adjustment as set out in Paragraph 1 is reached within 20 days of entering into negotiations, the complaining Party may at any time thereafter notify the responding Party that it intends to suspend the application to the responding Party of benefits of equivalent effect and shall have the right to begin suspending those benefits 30 days after the receipt of the notification. Benefits shall not be suspended while the complaining Party is pursuing negotiations under Paragraph 1. 3. Compensation and the suspension of benefits shall be temporary measures.

str. 261Neither compensation nor the suspension of benefits is preferred to full compliance with the findings and rulings of the arbitral tribunal. Compensation and suspension of benefits shall only be applied until such time as the measure found to be not in conformity with this Agreement has been brought into conformity, or the responding Party has complied with the arbitral tribunal's findings and rulings, or a mutually satisfactory solution is reached.

str. 2624. In considering what benefits to suspend pursuant to Paragraph 2:

- (a) the complaining Party shall first seek to suspend benefits in the same sector or sectors as that affected by the measure or other matter that the arbitral tribunal has found to be not in conformity with this Agreement or to have caused nullification or impairment; and
- (b) the complaining Party may suspend benefits in other sectors if it considers that it is not practicable or effective to suspend benefits in the same sector or sectors. The communication in which it announces such a decision shall indicate the reasons on which it is based. 5. Any suspension of benefits shall be restricted to benefits accruing to the other Party under this Agreement.

Article 15 Review

str. 2621. Where the right to suspend benefits has been exercised under Article 14, upon written request of the responding Party, the arbitral tribunal shall decide whether:

- (a) the level of benefits suspended by the complaining Party is not of equivalent effect pursuant to Article 14; or
- (b) the responding Party has complied with the findings and rulings of the original arbitral tribunal. 2. Such matters shall be decided through recourse to the dispute settlement procedures in this Chapter, including wherever possible by resort to the original arbitral tribunal, in accordance with Paragraph 9 of Article 7.

str. 2633. The arbitral tribunal shall present its report to the Parties within 90 days of the date on which the arbitral tribunal is established to consider the matters referred to in Paragraph 1. When the arbitral tribunal considers that it cannot present its report within this timeframe, it shall inform the Parties in writing of the reasons for the delay together with an estimate of the period within which it will present its report. Any delay shall not exceed a further period of 30 days unless the Parties otherwise agree. 4. If the arbitral tribunal finds that the level of benefits suspended by the complaining Party is not of equivalent effect, the complaining Party shall modify the level of benefits suspended accordingly. If the arbitral tribunal finds that the responding Party has complied with the findings and rulings, the complaining Party shall promptly stop the suspension of benefits under Article 14.

Article 16 Expenses

str. 263Unless the arbitral tribunal decides otherwise because of the particular circumstances of the case, each Party shall bear the cost of its appointed arbitrator and its own expenses. The cost of the chair of the arbitral tribunal and other expenses associated with the conduct of its proceedings shall be borne by the Parties in equal shares.

MODEL RULES OF PROCEDURE FOR ARBITRAL TRIBUNALS

str. 2641. These rules shall be read consistently with Chapter 16 (Dispute Settlement).

Notifications

str. 2642. Any written submission, request, notice or other document shall be delivered by a Party or the arbitral tribunal by delivery against receipt, registered post, courier, facsimile or electronic transmission or any other means of telecommunication that provides a record of the sending thereof. 3. Each Party shall provide to the other Party and to each of the arbitrators a copy of all of its written communications, including any written submission, request, notice, or other document. A copy of the written communication shall also be provided in electronic format. 4. All notifications shall be made and delivered to each Party. 5. Minor errors of a clerical nature in any written submission, request, notice or other document related to the arbitral tribunal proceedings may be corrected by delivery of a new document clearly indicating the changes. 6. If the last day for delivery of a document falls on a legal holiday of a Party, the document may be delivered on the next business day.

Commencing the Arbitration

str. 265Unless the Parties otherwise agree, they shall meet with the arbitral tribunal within seven days following the

Timetable

str. 2658. After consulting the Parties, an arbitral tribunal shall, as soon as practicable and whenever possible within 15 days after the establishment of the arbitral tribunal, fix the timetable for the arbitral tribunal process. 9. In determining the timetable for the arbitral tribunal process, the arbitral tribunal shall provide sufficient time for the Parties to prepare their respective submissions. The arbitral tribunal shall set precise deadlines for written submissions by the Parties and they shall respect those deadlines. In their written submissions, the Parties shall set out the facts of the case and their arguments. 10. Unless otherwise agreed by the Parties, an arbitral tribunal may, in consultation with the Parties, modify any time period established pursuant to these rules and make such other procedural or administrative adjustments as may be required in the arbitral tribunal proceedings. Prior to the consultation with the Parties, the arbitral tribunal shall inform the Parties of the reasons for the modification or adjustment with an indication of the period or adjustment needed.

Operation of Arbitral Tribunals

str. 26511. The chair of the arbitral tribunal shall preside at all of its meetings.

str. 266Except as otherwise provided in these rules, the arbitral tribunal may conduct its activities by any means,

including telephone, facsimile transmissions or computer links. Only members of the arbitral tribunal may take part in the deliberations of the arbitral tribunal.

str. 26612. The drafting of any decision and ruling shall remain the exclusive responsibility of the arbitral tribunal. 13. Where a procedural question arises that is not covered by these rules, an arbitral tribunal may adopt an appropriate procedure that is not inconsistent with this Agreement. 14. The arbitral tribunal may, in consultation with the Parties, retain such number of assistants or designated note-takers as may be required for the arbitral tribunal proceedings. 15. The arbitral tribunal's deliberations shall be confidential. The members of the arbitral tribunal and any persons retained by the arbitral tribunal under rule 14 shall maintain the confidentiality of arbitral tribunal proceedings and deliberations.

Hearings

str. 26616. The chair shall fix the date and time of the hearing in consultation with the Parties and the other members of the arbitral tribunal 27 . The chair shall notify the Parties in writing of the date, time and location of the hearing. Unless either of the Parties disagrees, the arbitral tribunal may decide not to convene a hearing. 17. Unless the Parties otherwise agree, the hearing shall be held in the responding Party's Area. The responding Party shall be in charge of the logistical administration of arbitral tribunal proceedings, in particular the organisation of hearings, unless otherwise agreed. 27 Except where, in accordance with Paragraph 9 of Article 7 (Composition of Arbitral Tribunals), an arbitral tribunal comprises only of the chair of the original arbitral tribunal.

str. 26718. The arbitral tribunal may convene additional hearings if the Parties so agree. 19. All arbitrators shall be present at all hearings. 20. No later than five days before the date of a hearing, each Party shall deliver to the other Party and the arbitral tribunal a list of the names of its representatives or advisers who will be attending the hearing. 21. The hearings of the arbitral tribunals shall be held in closed session, unless the Parties decide otherwise. If the Parties decide that the hearing is open to the public, part of the hearing may however be held in closed session, if the arbitral tribunal, on application by either Party, so decides for good reasons. In particular, the arbitral tribunal shall meet in closed session when the submissions and arguments of a Party contain business confidential information. 22. The arbitral tribunal shall conduct the hearing in the following manner:

- (a) argument of the complaining Party;
- (b) argument of the responding Party including rebuttal;
- (c) rebuttal of the complaining Party;
- (d) questions from the arbitral tribunal and the Parties;
- (e) final statement of the complaining Party; and
- (f) final statement of the responding Party. 23. The chair may set time limits for oral arguments to ensure that each Party is afforded equal time. Each Party shall make available to the arbitral tribunal and to the other Party written versions of their oral statements.

str. 26824. Within ten days after the date of the hearing, each Party may deliver a supplementary written statement responding to any matter that arose during the hearing.

Questions in Writing

str. 26825. The arbitral tribunal may at any time during the arbitral tribunal proceedings address questions in writing to the Parties. 26. A Party to whom the arbitral tribunal addresses a written question shall deliver a copy of any written reply to the other Party and to the arbitral tribunal in accordance with the timetable established by the arbitral tribunal. The other Party shall be given the opportunity to provide written comments on the reply within five days after the date of delivery.

Confidentiality

str. 26827. The Parties shall maintain the confidentiality of the arbitral tribunal's hearings to the extent that the arbitral tribunal holds the hearing in closed session under rule 21. 28. Each Party shall:

- (a) unless otherwise agreed by the Parties, treat as confidential any information or technical advice submitted to the arbitral tribunal by any individual or body in accordance with a request by the arbitral tribunal pursuant to Paragraph 3 of Article 9 (Proceedings of Arbitral Tribunals); and
- (b) treat as confidential any information submitted by the other Party to the arbitral tribunal which that Party has designated as confidential.

str. 26929. Where a Party submits a confidential version of its written submissions to the arbitral tribunal it shall, at the request of the other Party, also provide a non-confidential summary of the information contained in its submissions that could be disclosed to the public, no later than 15 days after the hearing. 30. Nothing in these rules shall preclude either Party from disclosing statements of its own positions to the public.

No ex parte Communications

str. 26931. The arbitral tribunal shall not meet or contact a Party in the absence of the other Party. 32. Neither Party shall contact any arbitrator in relation to the dispute in the absence of the other Party. 33. No arbitrator shall discuss an aspect of the subject matter of the arbitral tribunal proceedings with a Party in the absence of the other Party.

Language

str. 26934. The working language of the arbitral tribunal proceedings shall be English. 35. Written submissions, documents, oral arguments or presentations at the hearings, initial and final reports of the arbitral tribunal, as well as all other written or oral communications between the Parties and between the Parties and the arbitral tribunal shall be conducted in English.

Computation of Time

str. 270Where anything under this Chapter or these rules is to be done, or the arbitral tribunal requires anything to be done, within a number of days after, before or of a specified date or event, the specified date or the date on which the specified

event occurs shall not be included in calculating that number of days.

str. 27037. Where, by reason of the operation of rule 6, a Party receives a document on a date other than the date on which the same document is received by the other Party, any period of time the calculation of which is dependent on such receipt shall be calculated from the date of receipt of the last such document.

ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS

Article 1 Establishment of the Joint Commission

str. 271The Parties hereby establish a Joint Commission which may meet at the level of Ministers or senior officials, as mutually determined by the Parties.

Article 2 Functions of the Joint Commission

str. 2711. The Joint Commission shall:
2. (a) consider any matter relating to the implementation of this Agreement;
3. (b) review the general functioning of this Agreement;
4. (c) consider any proposal to amend this Agreement;
5. (d) supervise the work of all committees and working groups established under this Agreement and supervise other activities conducted under this Agreement; and
6. (e) consider any other matter that may affect the operation of this Agreement. 2. The Joint Commission may:
8.

str. 272(a) establish additional committees and working groups, refer any matter to a committee or working group for advice, and consider any matter raised by a committee or working group established under this Agreement; - (b) further the implementation of this Agreement's objectives through implementing arrangements;
- (c) further the implementation of this Agreement's objectives by approving any modifications of, inter alia , the lists of entities and thresholds in Annexes I and II to Chapter 12 (Government Procurement);
- (d) explore measures for the further expansion of trade and investment between the Parties;
- (e) seek to resolve differences or disputes that may arise regarding the interpretation or application of this Agreement;
- (f) seek the expert advice of non-governmental persons or groups on any matter falling within its functions where this would help the Joint Commission make an informed decision; and
- (g) take such other action in the exercise of its functions as the Parties may mutually determine.

Article 3 Meetings of the Joint Commission

str. 2721. The Joint Commission shall meet within one year of the date of entry into force of this Agreement and every second year thereafter, or as otherwise mutually determined by the Parties. 2. Meetings of the Joint Commission shall be held alternately in the Area of each Party or as otherwise mutually determined by the Parties, and shall be chaired successively by each Party. The Party chairing a meeting of the Joint Commission shall provide any necessary administrative support for that meeting.

str. 2733. Each Party shall be responsible for the composition of its delegation. 4. The Joint Commission shall take decisions on any matter within its functions by mutual agreement.

Article 4 General Reviews

str. 2731. The Parties shall undertake a general review at ministerial level of this Agreement, including of matters relating to liberalisation, cooperation and trade facilitation, within two years of its entry into force and at least every three years thereafter, unless the Parties agree otherwise. 2. The conduct of general reviews shall, where possible, coincide with regular meetings of the Joint Commission.

GENERAL PROVISIONS

Article 1 Application of Agreement to Local 28 Government and Authorities

str. 2741. Each Party is fully responsible for the observance of all provisions in this Agreement and shall take such reasonable measures as may be available to it to ensure their observance by local government and authorities. 2. Chapter 16 (Dispute Settlement) may be invoked in respect of measures affecting the observance of this Agreement taken by local government or authorities within the Area of a Party. When an arbitral tribunal established under Chapter 16 (Dispute Settlement) has ruled that a provision of this Agreement has not been observed, the responsible Party shall take such reasonable measures as may be available to it to ensure its observance by the relevant local government or authority within its Area. The provisions of Chapter 16 (Dispute Settlement) relating to the suspension of the application of benefits of equivalent effect shall apply in cases where it has not been possible to secure such observance. 3. This Article does not apply to Chapter 12 (Government Procurement).

Article 2 Disclosure of Information

str. 274Nothing in this Agreement shall be construed to require either Party to furnish or allow access to information the disclosure of which it considers:

28 In the case of New Zealand, references to local governments and authorities include regional government and authorities.

str. 275- (a) would be contrary to any of its domestic law, including those protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions;
- (b) would impede law enforcement;
- (c) would prejudice legitimate commercial interests of particular enterprises, public or private;
- (d) would be contrary to the public interest as determined by its domestic law; or
- (e) at the time of the disclosure of the information, would be for the purpose of judicial proceedings.

Article 3 Obligations under other International Agreements

str. 275Nothing in this Agreement shall derogate from the existing rights and obligations of either Party under the WTO Agreement or any other international agreement to which it is a party or which is applicable to its Area. In the event of any inconsistency between this Agreement and any other international agreement to which the Parties are party or which is applicable to the Parties' Areas, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution in accordance with customary rules of public international law.

Article 4 Labour and Environmental Cooperation

str. 275The Parties shall enhance their communication and cooperation on labour and environment matters through both the New Zealand -Hong Kong, China Environment Cooperation Agreement and the Memorandum of Understanding on Labour Cooperation between

str. 276New Zealand and Hong Kong, China concluded between the Parties separately from but alongside this Agreement.

Article 5 Succession of Treaties or International Agreements

str. 276Any reference in this Agreement to any other treaty or international agreement shall be made in the same terms to its successor treaty or international agreement to which a Party is party or which is applicable to a Party's Area.

Article 6

Confidentiality

str. 276Where a Party provides information to the other Party in accordance with this Agreement and designates the information as confidential, the other Party shall maintain the confidentiality of the information. Such information shall be used only for the purposes specified, and shall not be otherwise disclosed without the specific written permission of the Party providing the information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.

Article 7 Financial Provisions

str. 276Any cooperative activities envisaged or undertaken under this Agreement shall be subject to the availability of resources and to the domestic laws and policies of the Parties. Costs of cooperative activities shall be borne in such manner as may be mutually determined from time to time between the Parties.

EXCEPTIONS

Article 1 General Exceptions

str. 2771. For the purposes of this Agreement, Article XX of GATT 1994 and its interpretive notes and Article XIV of GATS (including its footnotes) are incorporated into and made part of this Agreement, mutatis mutandis . 2. The Parties understand that the measures referred to in Article XX(b) of GATT 1994 and Article XIV(b) of GATS as incorporated into this Agreement include environmental measures necessary to protect human, animal or plant life or health, and that Article XX(g) of GATT 1994 as incorporated into this Agreement applies to measures relating to the conservation of living and non-living exhaustible natural resources. 3. For the purposes of this Agreement, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between the Parties where like conditions prevail, or a disguised restriction on trade in goods or services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by a Party of measures necessary to protect national works or specific sites of historical or archaeological value, or to support creative arts 29 of national value. 29 'Creative arts' include: the performing arts - including theatre, dance and music - visual arts and craft, literature, film and video, language arts, creative on-line content, indigenous traditional practice and contemporary cultural expression, and digital interactive media and hybrid art work, including those that use new technologies to transcend discrete art form divisions. The term encompasses those activities involved in the presentation, execution and interpretation of the arts; and the study and technical development of these art forms and activities.

Article 2 Security Exceptions 1. Nothing in this Agreement shall be construed:

str. 2782. (a) to require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests; or
3. (b) to prevent a Party from taking any actions which it considers necessary for the protection of its essential security interests
4. (i) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials or relating to the supply of services as carried on, directly or indirectly, for the purpose of supplying or provisioning a military establishment;
5. (ii) taken in time of war or other emergency in external relations;
6. (iii) relating to fissionable and fusionable materials or the materials from which they are derived; or
7. (c) to prevent either Party from taking any action in pursuance of the obligations applicable to it under the United Nations Charter for the maintenance of international peace and security. 2. Each Party shall promptly inform the other Party to the fullest extent possible of measures taken under Paragraphs 1(b) and (c) and of their termination.

Article 3 Treaty of Waitangi 1. Provided that such measures are not used as a means of arbitrary or unjustified discrimination against persons of the other Party or as a disguised restriction on trade in goods and services, nothing in this Agreement shall preclude the adoption by New Zealand of measures it deems necessary to accord more favourable treatment to M ā ori in respect of matters covered by this Agreement including in fulfilment of its obligations under the Treaty of Waitangi.

str. 2792. The Parties agree that the interpretation of the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this Agreement. Chapter 16 (Dispute Settlement) shall otherwise apply to this Article. An arbitral tribunal established under Article 6 (Establishment of an Arbitral Tribunal) of Chapter 16 (Dispute Settlement) may be requested by Hong Kong, China to determine only whether any measure (referred to in Paragraph 1) is inconsistent with its rights under this Agreement.

Article 4 Taxation Measures

str. 2791. Except as provided in this Article, nothing in this Agreement shall apply to taxation measures. 2. This Agreement shall only grant rights or impose obligations with respect to taxation measures where corresponding rights or obligations are also granted or imposed under the WTO Agreement . 3. Nothing in this Agreement shall affect the rights and obligations of the Parties under any tax convention relating to the avoidance of double taxation in force between the Parties. In the event of any inconsistency relating to a taxation measure between this Agreement and any tax convention relating to the avoidance of double taxation in force between the Parties, the latter shall prevail. Any consultations between the Parties about whether an inconsistency relates to a taxation measure shall include representatives of the tax administration of each Party.

Article 5 Prudential Measures

str. 280Notwithstanding any other provisions of this Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with this Agreement, they shall not be used as a means of avoiding the Party's commitments or obligations under this Agreement.

Article 6 Measures to Safeguard the Balance of Payments

str. 2801. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may:

- (a) in the case of trade in goods, in accordance with GATT 1994 and the WTO Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 , adopt restrictive import measures; and/or
- (b) in the case of services, in accordance with Article XII(2) of GATS , adopt or maintain restrictions on trade in services, including on payments or transfers. 2.

str. 281In determining the incidence of restrictions adopted or maintained under Paragraph 1, each Party may give priority to economic sectors which are more essential to its

economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector.

str. 2813. Any restrictions adopted or maintained by a Party under Paragraph 1, or any changes therein, shall be notified to the other Party within 14 days from the date such measures are taken. 4. The Party adopting or maintaining any restrictions under Paragraph 1 shall commence consultations with the other Party within 45 days from the date of notification in order to review the measures adopted or maintained by it.

FINAL PROVISIONS

Article 1 Annexes and Footnotes

str. 282The Annexes and footnotes to this Agreement shall constitute an integral part of this Agreement.

Article 2 Amendments

str. 282This Agreement may be amended by agreement in writing by the Parties and such amendments shall come into force on such date or dates as may be agreed between them.

Article 3 Participation by Other Economies

str. 282This Agreement is open to accession or association, on terms to be agreed between the Parties, by any member of the WTO, or by any other State or separate customs territory. The terms of such accession or association shall take into account the circumstances of the member of the WTO, State or separate customs territory.

Article 4

Entry into Force, Duration and Termination