  
  
WT/REG395/1  
1 April 2021  
(21-0149) Page: 1/85 
Committee on Regional Trade Agreements    
 
 
FACTUAL PRESENTATION  
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS -PACIFIC PARTNERSHIP (CPTPP)  
(GOODS AND SERVICES)1 
Report by the Secretariat  
This report, prepared for the consideration of the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP), has been drawn 
up by the WTO Secretariat on its own responsibility and in full consultation with 
the Parties. The factual pres entation reproduces as closely as possible the 
terminology used in the Agreement and in the comments provided and does not 
imply official endorsement or acceptance by the Secretariat of such terminology. 
The report has been drawn up in accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade 
Agreements (WT/L/671) and thus does not imply any value judgement by the 
Secretariat regarding the contents of the Agreement.  
 
Any technical questions arising fr om this report may be addressed to 
Rohini  Acharya (tel: +41 22 739 5874), Jean -Daniel Rey (tel: +41 22 739 5264), 
Maria Donner Abreu (tel: +41 22 739 5244), Alberto Osnago (tel: +41 22 739 
6969) and Ana Cristina Molina (tel: +41 22 739 6060). Any statistic al questions 
arising from this report may be addressed to Rowena Cabos (tel: +41 22 
739 5185) and Thakur Parajuli (tel: +41 22 739 5473).  
 
 
  
 
1 Detailed information on each Party is provided in the Appendices to this document 
(WT/REG395/1/Add.1 – WT/REG395/1/Add.7).  WT/REG395/1  
 
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  Table o f Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Background Information  ................................ ................................ ...............................  5 
1.2   Merchandise trade  ................................ ................................ ................................ ....... 7 
1.3   Trade in services and investment  ................................ ................................ ................. 10 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  12 
2.1   Background Information  ................................ ................................ .............................. 12 
2.2   Structure of the Agreement  ................................ ................................ ......................... 13 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  15 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 16 
3.1.1    General provisions  ................................ ................................ ................................ ...16 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 17 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 19 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....23 
3.2   Rules of origin  ................................ ................................ ................................ ............ 24 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 27 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 28 
3.4.1    Standards  ................................ ................................ ................................ ............... 28 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......28 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 30 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 31 
3.4.2.1   Global Safeguards  ................................ ................................ ................................ .32 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 32 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 33 
3.4.2.4    Balance -of-payments safeguards  ................................ ................................ ............ 36 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .36 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 37 
3.4.5    Customs -related procedures and trade facilitation  ................................ ........................ 37 
3.4.5.1    Granting of preferential treatment  ................................ ................................ ........... 37 
3.4.5.2    Customs administration and trade facilitation  ................................ ........................... 38 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...39 
3.5.1    Agriculture  ................................ ................................ ................................ .............. 39 
3.5.2    Textiles and apparel  ................................ ................................ ................................ .40 
3.5.3    Motor vehicles  ................................ ................................ ................................ ......... 40 
4   PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ .........  42 
4.1   Scope and definitions  ................................ ................................ ................................ ..42 
4.2   Denial of benefits  ................................ ................................ ................................ .......43 
4.3   General provisions on trade in services  ................................ ................................ ......... 43 
4.3.1    Market access  ................................ ................................ ................................ ......... 43 
4.3.2    National and MFN treatment  ................................ ................................ ...................... 44 WT/REG395/1  
 
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  4.3.3    Commercial presence  ................................ ................................ ............................... 44 
4.3.4    Performanc e requirements  ................................ ................................ ........................ 44 
4.3.5    Senior Management and Boards of Directors  ................................ ............................... 44 
4.3.6    Movement of natural persons  ................................ ................................ .................... 44 
4.4   Liberalization commitments  ................................ ................................ ......................... 48 
4.4.1    Overview  ................................ ................................ ................................ ................ 49 
4.4.2    Sector -specific commitments  ................................ ................................ ..................... 51 
4.5   Regulatory provisions  ................................ ................................ ................................ ..53 
4.5.1    Domestic regulation  ................................ ................................ ................................ .53 
4.5.2    Recognition  ................................ ................................ ................................ ............. 54 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 54 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 54 
4.5.5    Other provisions on Investment  ................................ ................................ ................. 55 
4.6   Sector specific provisions on trade in services  ................................ ................................ 56 
4.6.1    Financial Services  ................................ ................................ ................................ ....56 
4.6.2    Telecommunications  ................................ ................................ ................................ .58 
4.6.3    Express Delivery Services  ................................ ................................ ......................... 60 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  60 
5.1   Transparency  ................................ ................................ ................................ ............. 60 
5.2   Current payments and capital movements  ................................ ................................ .....61 
5.3   Exceptions  ................................ ................................ ................................ ................. 61 
5.3.1    General exceptions  ................................ ................................ ................................ ..61 
5.3.2    Security exceptions  ................................ ................................ ................................ ..61 
5.3.3    Taxation  ................................ ................................ ................................ ................. 61 
5.4   Accession and Withdrawal ................................ ................................ ............................ 61 
5.5   Institutional framework  ................................ ................................ ............................... 62 
5.6   Dispute settlement  ................................ ................................ ................................ .....62 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 64 
5.8   Government procurement  ................................ ................................ ............................ 69 
5.9   Intellectual property rights  ................................ ................................ .......................... 70 
5.10   Competition  ................................ ................................ ................................ ............. 73 
5.11   State -owned enterprises  ................................ ................................ ............................ 73 
5.12   Environment  ................................ ................................ ................................ ............ 75 
5.13   Labour  ................................ ................................ ................................ .................... 76 
5.14   Electronic commerce  ................................ ................................ ................................ .77 
5.15   Small and Medium -sized Enterprises (SMEs)  ................................ ................................ 78 
5.16   Other  ................................ ................................ ................................ ...................... 78 
5.16.1    Cooperation and capacity building  ................................ ................................ ............ 78 
5.16.2    Competitive and business facilitation  ................................ ................................ ........ 79 
5.16.3    Development  ................................ ................................ ................................ ......... 79 WT/REG395/1  
 
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  5.16.4    Regulatory coherence  ................................ ................................ ............................. 79 
5.16.5    Anti-corruption  ................................ ................................ ................................ ......80 
ANNEX 1  ................................ ................................ ................................ ........................  81 
ANNEX 2  ................................ ................................ ................................ ........................  83 
 
  WT/REG395/1  
 
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Key Facts  
 
Signatories to the 
Agreement:  Australia, Brunei Darussalam, Canada, Chile, 
Japan, Malaysia, Mexico, New Zealand, Peru, 
Singapore and Viet Nam  
 
Date of Signature:  8 March 2018  
 
Date of Entry into Force:  30 December 2018 for Australia, Canada, 
Japan, Mexico, New Zealand and Singapore.  
 
14 January 2019 for Viet Nam.  
 
For the rest of the Signatories, entry into force 
would be in accordance with Article 3 (Entry 
into Force), paragraph 2, of the CPTPP.  
 
Date  of Notification:  20 December 2018  
 
Full implementation:  2039  
 
 
1  TRADE ENVIRONMENT  
1.1  Background  Information  
The Comprehensive and Progressive Agreement for Trans -Pacific Partnership (hereinafter the 
CPTPP)  was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New 
Zealand, Peru, Singapore and Viet Nam  (hereinafter the CPTPP Signatories) o n 8 March 2018. It was 
notified  to the WTO on 20 December 2018, under Article  XXIV:7 of the GATT 1994 and its 
Understanding and under Article V:7(a) of the GATS.2 Background information on the origins of the 
CPTPP can be found in Section 2.1.  
The CPTPP entered into force for Australia, Canada, Japan, Mexico, New Zealand, and 
Singapore on 30 December 2018 and for Viet Nam (hereinafter the Parties) on 14 January 2019. 
The four remaining CPTPP Signatories (Brunei Darussalam, Chile, Malaysia, and Peru) are yet to 
ratify the CPTPP and therefore it is not yet in force between them and the other seven Parties.  
All the P arties are party to several RTAs ( Chart 1.1 ). Singapore and Mexico are party to more 
than 20 RTAs notified to the WTO, including the Agreement. The other Parties have notified between 
12 (New Zealand)  and 18 (Japan) RTAs. Chart 1.1  also shows the number of  notified RTAs in force 
(and notified to the WTO) that each Party has with one or more of the other Parties (hereinafter 
overlapping RTAs) including the CPTPP and with other partners. The number of overlapping RTAs 
ranges from 2 for Canada to 9 for Singapo re. The Party with the largest proportion of overlapping 
RTAs is Viet Nam with almost half of its agreements concluded with other Parties.  
 
2 See documents WT/REG395/N/1 and S/C/N/920.  WT/REG395/1  
 
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  Chart 1.1 Number of overlapping and other RTAs as of 5 March  2021  
 
Note:   Only RTAs in force and notified to the WTO as of 5 March 2021 are considered. The number of 
overlapping RTAs includes the Agreement.  
Source:  WTO RTA database.  
 
Table 1.1 lists all the overlapping RTAs in force and notified to the WTO sorted by their date of 
entry into force. The table also indicates whether the agreements cover trade in goods and services. 
Australia and Japan have 5 overlapping RTAs other than the Agreement with 4 other Parties; Canada 
has only one overlapping RTA with one Party; Mexico has 3 overlapping RTAs with 4 other Parties; 
New Zealand has 5 overlapping RTAs with 3 other Parties; Singapo re has 8 overlapping RTAs with 5 
other Parties; Viet Nam has 5 overlapping RTAs with 5 other Parties.3 
Table 1.1 List of overlapping RTAs as of 5 March 2021  
Agreement  Entry into 
force  Coverage  
Australia  
Canada  
Japan  
Mexico  
New 
Zealand  
Singapore  
Viet Nam  
ANZCERTA  01-01-1983 Goods & 
Services  X    
X   
GSTP  19-04-1989 Goods     
X  
X X 
AFTA 01-01-1993 Goods       
X X 
New Zealand - 
Singapore  01-01-2001 Goods & 
Services      
X X  
Japan - Singapore  30-11-2002 Goods & 
Services    
X   
X  
 
3 A side letter signed by Australia and New Zealand states that nothing in the Agreemen t shall be 
construed to derogate from any rights and obligations under the ANZCERTA and ASEAN -Australia -New Zealand 
Agreements . A side letter signed by New Zealand and Singapore states that nothing in the Agreement shall be 
construed to derogate from any r ights and obligations under the New Zealand – Singapore, ASEAN -Australia -
New Zealand and Trans -Pacific  Strategic  Economic Partnership Agreement s. A side letter signed by New 
Zealand and Viet Nam states that nothing in the Agreement shall be construed to de rogate from any rights and 
obligations under the ASEAN -Australia -New Zealand Agreement.  
051015202530
Australia Canada Japan Mexico New Zealand Singapore Viet Nam
Overlapping RTAs Other RTAsWT/REG395/1  
 
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  Agreement  Entry into 
force  Coverage  
Australia  
Canada  
Japan  
Mexico  
New 
Zealand  
Singapore  
Viet Nam  
Singapore - Australia  28-07-2003 Goods & 
Services  X     
X  
Japan - Mexico  01-04-2005 Goods & 
Services    
X X    
TPSEP  28-05-2006 Goods & 
Services      
X X  
ASEAN - Japan  01-12-2008 Goods    
X   
X X 
Japan - Viet Nam  01-10-2009 Goods & 
Services    
X    
X 
ASEAN - Australia - 
New Zealand  01-01-2010 Goods & 
Services  X    
X X X 
Japan - Australia  15-01-2015 Goods & 
Services  X  
X     
USMCA/CUSMA/  
T-MEC 01-07-2020 Goods & 
Services   X  X    
Note:  Only RTAs in force and notified to the WTO as of 5 March 2021 are considered. The coverage of RTAs 
is as notified by the parties.  
Source:  WTO RTA database.  
 
1.2  Merchandise trade  
Table 1.2 reports imports and exports in USD  billion, as percentage of world total flows, the 
rank in world trade and GDP in USD billion by Party. In 2018, Japan was the largest trader with 
merchandise imports of USD 749 billion and merchandise exports of USD 738 billion. Mexico and 
Canada were the second and third largest traders, followed by Singapore, Australia, Viet Nam and 
New Zealand.  
Table 1.2 Merchandise trade and GDP by Party, 2018  
Party  Merchandise trade - 2018  GDP 
USD 
billion  
(201 8) Imports  Exports  
Value  
(USD 
billion)  Share in 
world  total 
(%) Ranka Value  
(USD 
billion)  Share in 
world total 
(%) Ranka 
Australia  236 1.19 17 257 1.32 16 1,418  
Canada  469 2.36 9 450 2.31 8 1,711  
Japan  749 3.77 4 738 3.79 4 4,972  
Mexico  477 2.40 8 451 2.31 7 1,223  
New Zealand  44 0.22 38 40 0.20 41 203 
Singapore  371 1.87 10 413 2.12 10 361 
Viet Nam  244 1.23 16 246 1.26 19 241 
a Rank excludes intra -EU trade.  
Source:  WTO Statistics Database, Trade Profiles (201 9). 
 
Chart 1.2  shows the evolution of each Party's global trade balance over the period 2000 -2018. 
Australia experienced a trade deficit that turned positive in 2010 and has remai ned positive with the 
exception of 2015. On the contrary, Canada's trade balance was positive until 2008 and negative 
afterwards with the exception of 2014. Japan's trade surplus became a deficit in the period 2011 -
2015 and in 2018. Mexico was the only Par ty with a consistent trade deficit over the period while 
New Zealand had a trade deficit except in 2001, 2010 and 2011. Singapore reported a consistent 
trade surplus over the period. Viet Nam's global trade deficit turned positive in 2012 and remained 
so with the exception of 2015.  WT/REG395/1  
 
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  Chart 1.2 Global merchandise trade balance by Party, 2000 -2018  
 
Source:  UNSD, Comtrade database and the Vietnamese authorities.  
 
The top panel of Chart 1.3 highlights the share of intra -CPTPP trade (dark green), defined as 
trade between the Parties, and the share of trade of the Parties with the other CPTPP Signatories 
(light green). While most of the trade of the Parties is with the rest of the world (grey), their trade 
with all CPTPP Signatories represented a non -negligible share corresponding to 16% of their total 
imports and 13% of their total exports. In tra-CPTPP trade between the Parties amounted to 12% of 
total imports and 10% of total exports.  
The bottom panel of Chart 1.3 shows the shares of the Pa rties' imports from and exports to 
the CPTPP Signatories with overlapping RTAs (light blue) and with CPTPP Signatories that do not 
have overlapping RTAs (dark blue) .4 The former captures trade potentially already covered by other 
RTAs while the latter cap tures trade potentially covered by the Agreement only. Most of the Parties' 
trade with CPTPP Signatories was already potentially covered by other existing RTAs. The Parties' 
imports from CPTPP signatories with overlapping RTAs amounted to 14% of total impo rts while 
exports to CPTPP signatories with overlapping RTAs corresponded to 12% of total exports.  
 
4 The RTAs between the Parties and the other CPTPP Signatories considered in the Chart are: Canada – 
Chile, Chile – Mexico, Japan – Malaysia, Chile – Japan, Brunei Daru ssalam – Japan, Australia – Chile, Canada – 
Peru, Peru – Singapore, New Zealand – Malaysia, Peru – Mexico, Chile – Malaysia, Japan – Peru, Malaysia – 
Australia, Chile - Viet Nam and the Pacific Alliance.  
-100-50050100
2000 2003 2006 2009 2012 2015 2018Australia
2000 2003 2006 2009 2012 2015 2018Canada
2000 2003 2006 2009 2012 2015 2018Japan
-100-50050100
2000 2003 2006 2009 2012 2015 2018Mexico
2000 2003 2006 2009 2012 2015 2018New Zealand 
2000 2003 2006 2009 2012 2015 2018Singapore USD billion
-100-50050100
2000 2003 2006 2009 2012 2015 2018Viet Nam WT/REG395/1  
 
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  Chart 1.3 Parties : Shares of trade with Parties and Signatories , average 2016 -2018  
 
Source:  UNSD, Comtrade databa se. 
 
Chart 1.4 shows the composition of imports (left panel) and exports (right panel) of the Parties 
as a whole by HS section and partner. The chart shows whether the o rigin and the destination of 
goods in the three largest HS Sections are the Parties (labelled as CPTPP), the CPTPP Signatories for 
which the CPTPP is not yet in force (Other) or the rest of the world (ROW). All other HS sections are 
aggregated in the grey category labelled as "Other". If the label of a partner cannot be clearly seen, 
it is an indication that trade does not represent a very large share.  
Machinery, minerals and vehicles are the largest imports and exports of the Parties and most 
trade was wi th the rest of the world. The shares of imports of machinery, minerals and vehicles from 
the rest of the world were 84. 9%, 75.7% and 83% respectively while the shares of exports of 
machinery, vehicles and minerals to the rest of the world are 87.8%, 89. 6% and 82% respectively. 
Focussing on intra -CPTPP trade, trade between the Parties was larger than trade between the Parties 
and the other CPTPP Signatories. The shares of imports from the Parties were 10% for machinery, 
15.5% for minerals and 16.6% for vehi cles compared to shares of imports from other CPTPP 
Signatories of 5. 1% 8.9% and 0.5% respectively. Similarly, the shares of exports to the Parties were 
8.2% for machinery, 1 2.9% for minerals and 8. 9% for vehicles compared to shares of exports to 
other CPT PP Signatories of 3.9% 4. 6% and 1.5% respectively. Details on the product composition 
of imports and exports by Party are provided in the country Appendices to this factual presentation.  
Imports from CPTPP and rest of the 
worldExports to CPTPP and rest of the world
Imports from Signatories with 
overlapping RTAsExports to Signatories with 
overlapping RTAs
WT/REG395/1  
 
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  Chart 1.4 Parties : Produc t composition of merchandise trade  by HS section , annual average 
(2016 -2018 ) 
 
Note:  CPTTP: Australia, Canada, Japan, Mexico, New Zealand, Singapore, Viet Nam .  
Other: Brunei Darussalam, Chile, Malaysia, Peru.  
ROW: rest of the world.  
Source:  UNSD, Comtrade  database.  
1.3  Trade in services and investment  
Table 1.3 reports imports and exports in USD  billion and as percentage of world total flows 
and the rank in world trade in commercial services by Party. In 2018, Singapore and Japan were the 
largest and second la rgest commercial services traders with respective imports of USD 200 billion 
and USD 199 billion and exports of USD 202 billion and USD 184 billion. The commercial services 
trade of all the other Parties was smaller accounting for between 0.3% and 1.3% of global imports 
and between 0.3% and 1.64% of global exports.  
Table  1.3 Total trade in c ommercial services by Party, 2018  
Party  Imports  Exports  
Value  
(USD 
billion ) Share in world 
total (%)  Ranka Value  
(USD 
billion)  Share in 
world total 
(%) Ranka 
Australia  71 1.29 13 68 1.18 13 
Canada  112 2.04 8 92 1.59 10 
Japan  198 3.61 4 187 3.25 5 
Mexico  37 0.68 20 28 0.49 23 
New Zealand  14 0.25 37 17 0.29 29 
Singapore  187 3.40 5 184 3.18 6 
Viet Nam  18 0.33 30 15 0.26 33 
a Rank excludes intra -EU trade.  
Source:  WTO Statistics Database, Trade Profiles (2019).  
 
The evolution of imports and exports of commercial services between 2005 and 2018 is 
shown, by Party, in Chart 1.5. Japan tended to be the largest importer and exporter of commercial 
services across the period while Singapore's trade in commercial services increased faster than that 
of any other Party. All the other Parties registered a relatively steady increase in trade in commercial 
services over the period.5 The services category composition of trade in commercial services by 
Party is described in the respective Appendices .  
 
5 Bilateral trade in services flows are available fo r Australia, Japan, New Zealand and Singapore and are 
described in the respective Appendices.  
WT/REG395/1  
 
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  Chart 1.5 Total trade  in commercial services by Party, 2005 -2018  
 
Note:  Exchange rates used to convert from local currency to USD:  
AUD to USD: 2015 -2017 (1.3); CAD to USD: 2005 (1.2) 2006 -2009 (1.1) 2010 -2013 (1.0) 2014 
(1.1) 2015 -2018 (1.3); JPY to USD: 2015 (121), 2016 (109) and 2017 (112).  
SGD to USD: 2005 (1.7) 2006 (1.6 ) 2007 (1.5) 2008 (1.4) 2009 (1.5) 2010 (1.4) 2011 -2014 (1.3) 
2015-2017 (1.4) 2018 (1.3); and NZD to USD: 2015 -2017 (1.4) 2018 (1.3).  
Source:  WTO Statistics Database and data provided by the Australian, Canadian, Japanese, Mexican, New 
Zealand authorities (2015 -2017) and Singaporean authorities (2005 -2018).  
 
Travel, transport and other business services are among the largest traded services 
categories. Additional details on the services category composition of trade in commercial services 
are pr ovided by Party in the respective Appendices . 
Before entry into force, FDI stocks and flows are shown by Party for the period 2000 -2018 in 
Chart 1.6. Singapore, Canada a nd Australia are the three largest recipients of FDI while Japan, 
Canada and Singapore are the three largest FDI sources.  
020406080100120140160180200
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018USD BillionImport
050100150200250
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018ExportWT/REG395/1  
 
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  Chart 1.6: Total FDI stocks and flows by Party, 2000 -2018  
 
Note:  Exchange rates used to convert from local currency to USD:  
AUD to USD: 2001 (1.9) 2002 (1.8) 2003 (1.5) 2004 (1.4) 2005 -2006 (1.3) 2007 -2008(1.2) 2009 
(1.3) 2010 (1.1) 2011 -2013 (1.0) 2014 (1.1) 2015-2018 (1.3). 
CAD to USD: 2015 -2017 (1.3); JPY to USD: 20 15 (121), 2016 (109) and 2017 (112) . 
SGD to USD: 2000 (1.7) 2001 -2002 (1.8) 2003 -2005 (1.7) 2006 (1.6) 2007 (1.5) 2008 (1.4) 2009 
(1.5) 2010 (1.4) 2011 -2014 (1.3) 2015 -2017 (1.4) 2018 (1.3).  
Source:  WTO Statistics Database and data provided by the Austral ian (2001 -2018),  Canadian , Japanese 
authorities (2015 -2017), Mexican authorities (FDI flow for 2015 -2017) and Singaporean authorities 
(FDI flow for 2000 -2018 and FDI Stock for 2001 -2018).  
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background Information  
Negotiations held between 12 Pacific -rim countries6 led to the signature, in February 2016, of 
the Trans -Pacific Partnership Agreement (TPP) . Following the withdrawal of the United States from 
the TPP, o n 11 November 2017, the 11 remaining countries agreed on the core elements of the 
CPTPP . The Agreement and a list of suspended  TPP provisions was adopted.   
The text of the Agreement7 along with its Annexes is available on the Parties'  website  as 
indicated below : 
 
6 Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, 
the United States and Viet Nam.  
7 New Zealand is the deposi tary. 
02004006008001,0001,2001,4001,600
2000 2003 2006 2009 2012 2015 2018FDI Inward Stock
(USD Billion)
02004006008001,0001,2001,4001,600
2000 2003 2006 2009 2012 2015 2018FDI Outward Stock
(USD Billion)
-40-10205080110140170
2000 2003 2006 2009 2012 2015 2018FDI Inflow
(USD Billion)
-40-10205080110140170
2000 2003 2006 2009 2012 2015 2018FDI Outflow
(USD Billion)
WT/REG395/1  
 
- 13 - 
 
  New Zealand / depositary:  www.mfat.govt.nz/en/about -us/who -we-are/treaties/cptpp  
Australia:  http://www.dfat.gov.au/cptpp  
Canada:  https://canada.ca/cptpp  
Japan:  www.cas.go.jp/jp/tpp/naiyou/tpp_text_en.html  
Mexico:  https://www.gob.mx/tratado -de-asociacion -transpacifico  
Singapore:  https://www.mti.gov.sg/ -/media/MTI/improving -trade/multilateral -and-regional -
forums/CPTPP/cptpp_legal_text_21022018.pdf  
Viet Nam:  https://wtocenter.vn/chuyen -de/12782 -full-text-of-cptpp  
 
2.2  Structure of the Agreement  
Article 1 of the CPTPP incorporates the provisions of the TPP and makes them part of the CPTPP 
mutatis mutandis,  except for Articles 30.4 (accession), 30.5 (entry into forc e), 30.6 (withdrawal) 
and 30.8 (authentic texts), while Article 2 suspends the application of certain provisions of the TPP. 
An Annex to the CPTPP lists the suspended provisions, which do not apply between the Parties during 
an undefined period of suspensi on. As at March 2021, these provisions continue to be suspended. 
Articles 3 through 5 govern the entry into force of, withdrawal from and accession to, the Agreement. 
In Article 6, in particular circumstances and upon request by a Party, the operation of t he Agreement 
shall be reviewed with a view to consider any amendment that may be required. Article 7 makes the 
texts of the Agreement drafted in English, Spanish and French authentic, though, in the event of 
divergence, the English version shall prevail.  
The remaining text of the CPTPP contains 30 Chapters. A number of Annexes are attached to 
specific Chapters of the CPTPP, including each Party's Schedule of tariff concessions and 4 Annexes 
containing each Party's non -conforming measures with respect to tra de in services, financial 
services, investment and State -owned enterprises and designated monopolies (Annexes I to IV of 
the CPTPP).   
The Agreement is complemented by a range of side instruments8, most of them taking the 
form of bilateral exchanges of let ters; one side instrument has been agreed by all the Parties. The 
number of side instruments vary according to the Parties, as shown in Table 2.1 below.  
Table 2.1: Side instruments among the Parties9 
Party  Bilateral   
AUS 22 
CAN 26 
JPN 10 
MEX 14 
NZL 13 
SGP 7 
VNM 44 
Total  68 
Source:  WTO, based on information supplied by the Parties.  
 
Many side instruments had already been agreed in the context of the TPP. As much as possible, 
the specific sections of this Factual Presentation incorporate and take into account the side 
instruments. Annex 1 to the Factual Presentation lists the topics covered by each side instrument.  
Table 2.2 below summarizes the structure of the Agreement identifying the pr ovisions of the 
TPP that are suspended according to Article 2 of the Agreement.  
 
 
8 "Side instruments " are also sometimes referred to as "side letters ". 
9 In addition to bilateral side letters, one Note is applicable to all Parties. Each instrument is counted, 
including those signed in the context of the TPP that have been rolled -over under the CPTPP.  WT/REG395/1  
 
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  Table 2.2: Structure of the Agreement  
Titles, Chapters  Title/description  Suspended provision  
Preamble    
Article 1  Incorporation of the Trans -Pacific Partnership 
Agreement (TPP)   
Article 2  Suspension of the application of certain 
provisions (of the TPP),  
Complemented by an Annex   
Article 3  Entry into force   
Article 4  Withdrawal   
Article 5  Accession   
Article 6  Review of the Comprehensive and 
Progressive Agreement for Trans -Pacific 
Partnership (CPTPP)   
Article 7  Authentic Texts   
   
   
TPP Preamble    
Chapter 1  Initial provisions and general definitions   
Chapter 2  National treatment and market access for 
goods   
Chapter 3  Rules of origin and origin procedures   
Chapter 4  Textile and apparel goods   
Chapter 5  Customs administration and trade facilitation  Part of Art. 5.7 (express shipments)  
Chapter 6  Trade remedies   
Chapter 7  Sanitary and phytosanitary measures   
Chapter 8  Technical barriers to trade   
Chapter 9  Investment  Part of Art. 9.1 (definitions)  
Part of Art. 9.19 (submission of a claim 
to arbitration)  
Part of Art. 9.22 (selection of 
arbitrators)  
Part of Art. 9.25 (governing law)  
Annex 9 -L (investment agreements)  
Chapter 10  Cross -border trade in services  Part of Annex 10 -B 
Chapter 11  Financial services  Part of Art. 11.2  
Annex 11 -E 
Chapter 12  Temporary entry for business persons   
Chapter 13  Telecommunications  Part of Art. 13.21  
Chapter 14  Electronic commerce   
Chapter 15  Government procurement  Part of Art. 15.8  
Part of Art. 15.24  
Chapter 16  Competition policy   
Chapter 17  State -owned enterprises and designated 
monopolies   
Chapter 18  Intellectual Property  Part of Art. 18.8  
Part of Art. 18.37  
Article 18.46  
Article 18.48  
Article 18.50  
Article 18.51  
Article 18.63  
Article 18.68  
Article 18.69  
Article 18.79  
Article 18.82  
Annex 18 -E 
Anne 18 -F 
Chapter 19  Labour   
Chapter 20  Environment  Part of Art. 20.17  
Chapter 21  Cooperation and capacity building   
Chapter 22  Competitiveness and business facilitation   
Chapter 23  Development   
Chapter 24  Small and medium -sized enterprises   
Chapter 25  Regulatory coherence   
Chapter 26  Transparency and anti -corruption  Part of Annex 26 -A 
Chapter 27  Administrative and institutional provisions   
Chapter 28  Dispute settlement   
Chapter 29  Exceptions and general provisions   WT/REG395/1  
 
- 15 - 
 
  Titles, Chapters  Title/description  Suspended provision  
Chapter 30  Final provisions   
   
Side Instruments between all Parties   
Side Instruments between some Parties   
  
Annexes to the Agreement   
Annex I  Cross -border trade in services and 
investment non -conforming measures 
(existing measures)   
Annex II  Cross -border trade in services and 
investment non -conforming measures 
(possible future measures)  Part of the Schedule of Brunei 
Darussalam (not in force)  
Annex III  Financial services non -conforming measures   
Annex IV  State -owned enterprises and designate d 
monopolies non -conforming measures  Part of the Schedule of Malaysia (not 
in force)  
Source:  WTO Secretariat based on the Agreement.  
In Article 1.1, the Parties establish a free trade area. They make a reference to Articles XXIV 
of GATT 1994 and V of GATS.  
The Parties' preferential treatment under other RTAs among them remains in force; exporters 
may thus choose which RTA to use. Some side letters deal with this issue explicitly, as indicated in 
Section  2.2. 
3  PROVISIONS ON TRADE IN GOODS  
The core disci plines on market access for trade in goods are those in Chapter 2 on "National 
Treatment and Market Access for Goods". Section  A covers "Definitions and Scope", Section B 
"National Treatment and Market Access for Goods", Section C "Agriculture" and Section  D "Tariff 
Rate Quota Administration ". 
While each Party's liberalization will be presented in individual Appendi ces, this Section will 
present a summary of tariffs and trade liberalization under Chapter 2, including Annexes and 
Appendi ces.  
Article III of GATT 1994 on national treatment is incorporated into the Agreement (Article 2.3). 
National treatment at the regional level of Government is treatment no less favourable than the 
most favourable treatment it accords to any like, directly competitive or subs titutable goods, as the 
case may be, of the Party of which it forms a part (Article 2.3.2). Exceptions to national treatment 
disciplines are listed in Annex 2 -A of the Agreement.  
Detailed disciplines are provided regarding import licensing (Article 2.12), which shall in any 
case be consistent with the WTO Import Licensing Agreement.  
Numerous transparency disciplines - generally in line with the WTO Import Licensing 
Agreement - are spelled out, e.g. information to be included in the notifications as well as  when WTO 
notifications would be considered as fulfilling the CPTPP's transparency requirements. In particular, 
the CPTTP requires a Party:  
a. to promptly notify other Parties, upon the CPTPP's entry into force, of its existing import 
licensing procedures;  
b. to notify other Parties of any new, or modification to existing, import licensing procedures, 
if possible, no later than 60 days before entry into effect10 and no later than 60 days after 
the date of its publication;  
c. to respond within 60 days to a reasonable  enquiry from another Party concerning licensing 
rules and procedures; and  
 
10 The corresponding period in the WTO Agreement is 21 days prior to its application.  WT/REG395/1  
 
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  d. to provide, upon request by an applicant from another Party who has been denied an 
import licence, a written explanation of the reason for the denial within a reasonable period 
after receiving the request.  
Finally, paragraph 9 of Article 2.12 makes clear that in case of a failure to provide appropriate 
notifications of existing import licences or of any modification, a Party is not authorized to apply 
such licensing procedure to a go od of another Party. All Parties who have ratified the Agreement 
have made their notifications under this provision.  
The CPTPP includes a general prohibition on requiring a person from another Party to establish 
or have a contract with a domestic distribut or in order to engage in importation.11 
The final articles of Section B of Chapter 2 require all Parties to participate in the WTO 
Information Technology Agreement except for Mexico whose participation is subject to the 
completion of internal legal procedu res;12 as of September 2020 that was still not the case 
(Article  2.17). Section B also lists information that Parties are to promptly publish (Article 2.16) and 
establishes a Committee on Trade in Goods that will consider any matter arising under Chapter 2 
(Article 2.18).  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
Import prohibition or restriction of specific good s is forbidden unless specified otherwise in the 
Agreement - in particular under Annexes 2 -A and 2 -B - or in accordance with Article XI of GATT 
1994 and its interpretative notes, which are incorporated into the Agreement (Article 2.10). The 
following are a lso explicitly prohibited:  
a. import price requirements except as permitted in enforcement of countervailing and 
antidumping duty orders and undertakings (Article 2.10); and  
b. import licensing conditioned on the fulfilment of a performance requirement.  
Articles  2.10 and 2.11 respectively make it explicit that import prohibitions/restrictions cannot 
be imposed on commercial cryptographic goods and remanufactured goods; in case any of these 
apply to used goods listed in Annex 2 -A (see below), they shall not be ext ended to remanufactured 
goods. Parties may however require that they be labelled as such and meet all applicable technical 
requirements applying to equivalent new goods.  
Annex 2 -A authorizes the following:13  
a. for all CPTPP Parties, import prohibitions/restrictions of rough diamonds (HS codes 
7102.10, 7102.21 and 7102.31), pursuant to the Kimberley Process Certification Scheme 
and any subsequent amendments to that scheme;  
b. for Canada:  
i. import prohibitions/restrictions and the waiving of nation al treatment disciplines on:  
•  importation of prohibited goods of HS 9897.00.00, 9898.00.00 and 9899.00.00 
(e.g. certain firearms and liver birds, reprint of copyrighted materials, etc.);  
• excise duties on absolute alcohol (HS 2207.10.90) used in manufactur ing;  
•  the use of ships in the coasting trade of Canada;  
 
11 The prohibition does not apply to rice and paddy in Malaysia.  
12 Grace period is also provided for Brunei Darussalam and Chile.  
13 In accordance with domestic law, including renewal or modification, provided it does not decrease the 
conformity of the measure with the relevant disciplines.  WT/REG395/1  
 
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  • the internal sale and distribution of wine and distilled spirits. Canada's side letters 
with Australia and New Zealand contain a number of disciplines that Canada is to 
follow regarding the treatmen t of wine and distilled spirits imported from these 
partners in terms of cost of service differentials, mark - ups or other pricing 
measures; and  
ii. waiving of national treatment disciplines on measures affecting cultural -related good s;  
c. for Mexico, restrictio ns/prohibitions on imports of used tyres, used apparel, used vehicles 
and used chassis equipped with vehicle motors;14 
d. for Viet Nam, import prohibition s on right-hand drive motor vehicles and their components 
(except some specialised vehicles and their com ponents); motor vehicles that are older 
than five years; and various categories of used goods .15  
Annex 2 -B provides other exceptions to the general prohibition on import 
restrictions/prohibitions on remanufactured goods. These apply only to Viet Nam; see Viet Nam 
Appendix to this factual presentation.  
Article 2.5 provides for a stand -still on waivers of a customs duty that is conditioned, explicitly 
or implicitly, on the fulfilment of a performance requirement. Disciplines are also provided for the 
re-entry of goods after repair and alteration; entry of commercial samples of negligible value and 
printed advertising material; temporary admission of goods; and ad hoc  discussions regarding any 
matter arising under the Agreement's Chapter 2 (Articles 2.6, 2.7, 2.8 and 2.9 respectively).  
Disciplines on fees and charges on or in connection with importation – excluding customs 
duties, charges equivalent to an internal tax, other internal taxes, antidumping and countervailing 
duties - are included in Article 2.14, w hich provide that:  
a. they shall be limited in amount to the approximate cost of services rendered;  
b. they shall not represent an indirect protection to domestic goods or a taxation of imports 
for fiscal purposes;  
c. consular transactions, including related fees and charges, cannot be applied in connection 
with importation from a CPTPP Party;  
d. Parties are to make available online an updated list of fees and charges imposed in 
connection with importation;  
e. they shall not be levied on an ad valorem  basis. Mexico has h owever been granted a grace 
period of five years in connection with the importation of a non -originating good; and  
f. Parties are to periodically review them "with a view to reducing their number and diversity 
if practicable".  
3.1.2   Liberalization of trade and tar iff lines  
The elimination of customs duties is implemented progressively over time on the basis of each 
Party's Annex 2 -D schedules of tariff commitments (Article 2.4) . Among the Parties, Singapore is 
the fastest to implement concessions – all at entry into force – while the longest transition period of 
21 years applies in the case of imports by Japan and Viet Nam. Tariffs are reduced from the base 
 
14 Import prohibitions or restr ictions on gasoline and diesel fuel were only allowed prior to 1 January 
2019 – i.e. only for two days following entry into force of the CPTPP for Mexico.  
15 These are: textiles, clothing and footwear; computer printers, fax machines and computer disk 
drives; laptop computers; refrigeration equipment; household electrical appliances; medical equipment; 
furniture; household goods made from porcelain, clay, glass, metal, resin, rubber, and plastic; frames, tyres, 
tubes, accessories, and engines of automobiles , tractors, and other motor vehicles; internal combustion 
engines with a capacity below 30 CV and machines with an internal combustion engine with a capacity below 
30 CV; and bicycles and tricycles.  WT/REG395/1  
 
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  rate specified in the Parties' schedules – basically the MFN rates on 1 January 2010.16 The Schedules 
have been drawn up  on the basis of the Harmonized System (HS) 2012. Article 2.4 also generally 
prohibits increasing existing, or adopting new, customs duties on originating products.  
Australia, Canada, New Zealand, Singapore have a single schedule for all Parties. While Vi et 
Nam also has a single elimination schedule, its implementation towards Mexico is delayed by one 
year (see paragraph 3.18.    below ). Japan and Mexico have differ ent liberalization categories for a 
limited number of tariff lines – those subject to country -specific tariff -rate quotas (TRQs), those for 
which the liberalization schedule from another RTA is used, or those subject to "tariff differentials". 
Further, Mex ico's liberalization towards Viet Nam is delayed by one year compared to other Parties. 
Table 3.1 summarizes how Parties' commitments on trade in goods are applied, including the number 
of tariff schedules and liberalization categories used by each Party.  
Japan's and Mexico's disciplines o n tariff differentials are included in Appendix C to Annex 2 -
D. These provisions modify the (otherwise applied) rules of origin to ensure that tariff deflection 
does not take place. Additional information can be found in Section 2.2 of the respective Appen dix 
by Party to this Factual Presentation.  
The CPTPP provides for a catch -up mechanism for "late -comers" – i.e. implementing at once 
all tariff cuts already in force for other Parties. Viet Nam applied the catch -up mechanism to all the 
Parties except with Mexico, granting two cuts in its tariff in January 2019 and thus synchronizing its 
liberalization with that of other Parties. Given that Mexico and Viet Nam have opted out of the catch -
up mechanism in their bilateral trade, their bilateral concessions are a year behind all the others.  
Table 3.1 Commitments on trade in goods under Annex 2 -D 
 
No of Schedules of 
liberalization  Number  of 
Categories  Specific 
Annexes  Transition 
Period,  
Number  
of years  Implementatio n 
perioda Catch -up 
mechanism  
(Yes/No, 
Party)  
AUS 1 8 - 4 2018-2021 Yes - VNM 
CAN 1 9 TRQs,  
VEH (JPN)  12 2018-2029 Yes - VNM 
JPN - General  
- Lines with TRQs  
- Lines from other 
RTAs 
- Lines with TD  63b  TRQs, TD, 
VEH 
(CAN), 
SSG, SSF  21 2018-2038 Yes - VNM 
MEX - Original Parties  
- VNM 
- Lines with TRQs  
- Lines with TD  23 TRQ, TD, 
SU (AUS)  16 2018-2033 
2019-2034 - VNM 
 No – VNM 
Yes - Others  
NZL 1 5 - 7 2018-2024 Yes - VNM 
SGP 1 1 - 0 2018 n.a. 
VNM - Original Parties  
- MEX 38  TRQ 20 
21 - MEX 2019-2038 
2019-2039 - MEX No - MEX 
Yes - Others  
a Implementation period applicable among the initial seven Parties. If the catch -up mechanism is not 
applied to countries that have not yet ratified the implementation period will be longer.  
b One of the categories requires a comparison with the preferential tariff in force under the Japan -
Australia RTA.  
SSF  Appendix on Forest goods safeguards  
SSG  Appendix on Agricultural safeguards  
SU Appendix on Sugar  
TD  Appendix on Tariff differentials  
TRQ  Appendix on TRQs  
VEH Appendix on Motor vehicles trade  
n.a. not applicable  
Source:  Party-specific Annexes 2 -D of the Agreement.  
 
16 Some exceptions apply in the case of Japan; in any case  the base rates are indicated in its Schedule.  WT/REG395/1  
 
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Table 3.2 below summarizes liberal ization under the Agreement in terms of percentage of 
lines becoming duty -free at entry into force and during the implementation period. Information is 
also provided on the percentage of lines that were MFN duty -free at entry into force as well as of 
those  remaining dutiable following CPTPP's full implementation.  
Table 3.2: Summary of liberalization under the Agreement  
Party  MFN duty -free 
at entry into 
force  Liberalization under the Agreement  
(% of lines)  Remain 
dutiable  At Entry into force  During implementation period  
AUS 47.7 45.6 6.5 0.2 
CAN 72.3 21.7 4.6 1.3 
JPN 40.3 43.9-44.0 11.6-11.8 4.1 
MEX 57.2 18.1-18.3 23.9 0.6-0.8 
NZL 59.1 35.5 5.4 - 
SGP 99.9 0.1 - - 
VNM 31.4 35.4 31.5 1.7 
Source:  WTO Secretariat calculations based on information provided by the Parties.  
 
Canada, Japan, Mexico and Viet Nam have TRQs in accordance with their Party -specific annex; 
see Section 3.1.4   below . 
Consultations on the acceleration of the elimination of customs duties among two or more 
Parties are to take place upon request by a Party (Article 2.4) . If agree d, all Parties shall be informed 
"as early as practicable". Acceleration may also occur on an autonomous basis; in this case, the duty 
may be subsequently increased up to levels not higher tha n those specified in the Party 's schedule 
of tariff commitments . Besides , with Australia, Canada and New Zealand,17 Japan has a  reciprocal 
"upon request" rendez -vous clause providing for consultations on Japan 's commitments in its Tariff 
Schedule , as follows:18 
a. to review liberalization commitments – in terms of tariffs, TRQs and safeguards - no sooner 
than seven years after entry into force – namely after end-December 2025; and  
b. concerning the extension of more favourable treatment granted by either Japan or the 
other Party under  another RTA. Such consultations are to take place within one month 
from the request (which can only be made following ratification of the relevant RTA ) unless 
the Parties agree otherwise. This clause constitutes a non -automatic MFN clause within an 
RTA. 
As of February 2021, no acceleration of commitments has taken place.  
3.1.3   Liberalization schedule  
This Section provides an overall picture of the Parties' liberalization commitments. Detailed 
analysis of liberalization by a Party is included in Party -specific Appendixes  1 to 7 of this document.  
Chart 3.1 depicts each Party's tariff elimination commitments – in terms of tariff lines - upon 
entry into force and by the end of the transition period, compared to the number of duty -free MFN 
lines in 2018. Also included is the liberalization under other existing RTAs between the Parties, both 
in 2018 and by the end of implementation of these RTAs (see Annex 2). Data is available for 18 such 
bilateral relationships - out of a total of  34.19 
Before the entry into force of the Agreement, between 31.4% and 72.3% of the Parties' MFN 
applied tariffs were duty free; Singapore maintains MFN applied tariffs on only six tariff lines. At the 
entry into force of the Agreement half of the Parties had ove r 90% of their tariff lines liberalized – 
namely Australia, New Zealand and Singapore, the latter liberalizing all lines immediately. At the 
 
17 These provisions will also apply to Chile once its ratification is completed.  
18 Party-specific Annex 2 -D, paragraphs 5 for Australia, 6 for Canada and 9 for Japan.  
19 The overlapping RTAs considered are: AUS/JPN: Japan - Australia; AUS/NZL: Australia -New Zealand 
Closer Economic Relations Agreement (ANZCERTA); AUS/SGP, AUS/VNM, NZL/VNM : ASEAN -Australia -New 
Zealand Free Trade Area (AANZFTA); JPN/MEX: Japan - Mexico; JPN -SGP: ASEAN -Japan; JPN/VNM: Japan - 
Viet Nam; and NZL/SGP: New Zealand – Singapore.  WT/REG395/1  
 
- 20 - 
 
  end of implementation, only New Zealand and Singapore will have removed tariffs on all lines for 
their partners. Th e lowest liberalization will be that by Japan – 95.9% of tariff lines by the end of 
implementation – while for others more than 98% of tariff lines will have been liberalized.  
When liberalization under the CPTPP is compared with that under other overlapping RTAs, in 
only three cases is the liberalization at entry into force in 2018 under the CPTPP greater than the 
share of lines already liberalized by 2018 under the overlapping RTA – namely that offered by 
Australia to Japan, and that of Japan vis-à-vis Australia and Viet Nam. Once CPTPP is fully 
implemented, tariff liberalization of Japan, Mexico  and Viet Nam is expected to be greater than those 
of the ir respective  overlapping R TAs.  
Chart 3.1: Tariff elimination commitments under the Agreement, and overlapping RTA s20 
 
Note:  The end of implementation (EOI) date for each Party under the Agreement is in brackets.  
 Data for overlappin g RTAs is that from the relevant Factual Presentations or, in the case of Australia -
New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), from the Parties . When 
more than one overlapping RTA existed, data for the RTA granting the best treatment  was used, 
subject to availability.  Although the Agreement entered into force for Viet Nam in 2019, 2018 MFN 
rates were used instead due to unavailability of 2019 rates.  
* EOI of Mexico vis-à-vis Viet Nam is 2034 due to the non -application of the catch -up mechanism.  
** EOI of Viet Nam vis-à-vis Mexico is 2039 due to the non -application of the catch -up mechanism.  
Source:  WTO Secretariat calculations based on information provided by the Parties and on the RTA database.  
 
Liberalization under the Agreement  in terms of share of imports benefitting from duty -free 
treatment is presented in Chart  3.2 below (2015 -2017 average);  corresponding figures under 
overlapping RTAs are also included (though the reference years are different). At its entry into force 
the share of duty -free imports is diverse  in all Parties except Singapore , ranging from 52% (imports 
by Viet Nam from Singap ore) to 100% for Singapore . By the end of the transition period liberalization 
will be come  more harmonized, though not so for Japan and  Mexico . For both these Parties, the 
lowest liberalization relates to  imports from New Zealand – with respectively 84.7% and 89.2% of 
imports due to benefit from duty -free treatment by 2038. Final liberalization under the Agreement 
 
20 Supra for the list of RTAs for which liberalization was compared with that under the CPTPP.  
0%10%20%30%40%50%60%70%80%90%100%
JPN
NZL
SGP
VNM
OTHERS
ALL
AUS
CAN
MEX
NZL
SGP
VNM
JPN
VNM
OTHERS
AUS
SGP
VNM
OTHERS
ALL
AUS
JPN
MEX
NZL
OTHERS
AUS (2021) CAN JPN (2038) MEX (2033)* NZL (2024) SGP VNM (2038)**
MFN duty-free (2018) CPTPP liberalization at EIF CPTPP liberalization by EOI
Overlap RTA, 2018 Overlap RTA, EOI% tariff lines
(2029) (2018)WT/REG395/1  
 
- 21 - 
 
  will be smaller than those under  overlapping RTAs in only two cases - namely imports into Japan 
from Australia and Singapore.  
Chart 3.2: Liberalization commitments under the Agreement, by imports (2015 -2017 
average)  
 
Note:  The EOI for each Party is indicated in brackets.  
 Data for overlapping RTAs is that used in the relevant Factual Presentations  or, in the case of 
ANZCERTA , from the Parties . When more than one overlapping RTA existed, data for the RTA 
granting the best treatment was used, subject to data availability.  Although the Agreement entered 
into force for Viet Nam in 2019, 20 18 MFN rates were used instead due to unavailability of 2019 
rates.  
* EOI of Mexico vis-à-vis Viet Nam is 2034 due to the non -application of the catch -up mechanism.  
** EOI of Viet Nam vis-à-vis Mexico is 2039 due to the non -application of the catch -up mec hanism.  
*** Average imports are based on different three -year periods.  
Source:  WTO Secretariat calculations based on information provided by the Parties and on the RTA database.  
 
Table 3.3 shows tariff liberalization by the Parties by total, agricultural and industrial products, 
at entry into force and at the end of the transition period. For Parties for which this period extends 
beyond 10 years, figures are also presented for 2027 (2028 in  the case of Viet Nam). The figures 
are presented in terms of the percentage of tariff lines liberalized, while the share of imports these 
tariff lines corresponded to during 2015 -2017 are also included but only for all products. Additional 
details can be found in Annex 1 to the Appendixes by Party. The table shows that the lowest overall 
liberalization at the end of implementation is that of Japan ( vis-à-vis imports from New Zealand), 
and that liberalization of agricultural products is less than that of in dustrial products. On agricultural 
products, full liberalization will occur in Australia, New Zealand and Singapore, with the lowest 
liberalization being expected in Japan and Canada. Japan will grant duty -free to between 83.4% and 
83.5% of agricultural ta riff lines and have a preferential applied average tariff of 2.9% in 2038; 
corresponding figures for Canada are 93.6% and 13.8% in 2029. For imports of industrial products, 
final implementation will mean full liberalization in Canada, Japan, New Zealand an d Singapore, with 
the lowest liberalization expected in Viet Nam - with a preferential applied average tariff of 0.4% in 
2038. Among the three Parties with transition periods that are longer than 10 years, the lowest 
overall liberalization in year 10 – both in terms of percentage of lines and imports – is that by Japan.  
0%10%20%30%40%50%60%70%80%90%100%
CAN
JPN
MEX
NZL
SGP
VNM
AUS
JPN
MEX
NZL
SGP
VNM
AUS
CAN
MEX
NZL
SGP
VNM
AUS
CAN
JPN
NZL
SGP
VNM
AUS
CAN
JPN
MEX
SGP
VNM
AUS
CAN
JPN
MEX
NZL
VNM
AUS
CAN
JPN
MEX
NZL
SGP
AUS (2021) CAN (2029) JPN (2038) MEX (2033)* NZL (2024) SGP (2018) VNM (2038)**
MFN duty-free (2018) CPTPP liberalization at EIF CPTPP liberalization by EOI Overlap RTA, EOI***% importsWT/REG395/1  
 
- 22 - 
 
  Table 3.3: Indicators of MFN and preferential tariffs, and share of duty -free imports 
(2015 -2017)  
Party  Year All Products  HS Chapters 01-24 HS Chapters 25 -97 
Average 
applied 
tariff 
(%),  
Overall  Duty -free Average 
applied 
tariff 
(%),  
Overall  % 
Duty -free 
tariff lines  Average 
applied 
tariff 
(%),  
Overall  % 
Duty -free 
tariff lines  % Lines  % 
Imports  
AUS MFN 
2018 2.8 47.7 35.6-80.5 1.1 78.4 3.1 41.8 
EIF 2018 0.2 93.3 87.7-98.7 0 99.9 0.3 92.1 
EOI 2021 0 99.8 99.8-100.0  0 100 0 99.8 
CAN MFN 
2018 5.4 72.3 54.2-95.3 17.5 57.8 2.4 76 
EIF 2018 3.3 94.0 74.3-99.6 14.8 85.3 0.4 96.3 
Y10 2027 2.8 96.8 89.5-99.9 14.0 86.8 0 99.4 
EOI 2029 2.8 98.7 98.7-100.0  13.8 93.6 0 100 
JPN MFN 
2018 4.8 40.3 39.9-89.8 10.8 17.5 3 47.8 
EIF 2018 2.1 84.2-84.3 74.9-95.0 7.6 50.4 0.5 95.2-95.4 
Y10 2027 0.9 88.3-88.4 80.1-95.3 3.4-3.5 66.7 0.1 95.3-95.5 
EOI 2038 0.7 95.9 84.7-99.9 2.9 83.4-83.5 0 100 
MEX MFN 
2018 5.7 57.2 63.8-87.5 14.5 16.4 4.6 62.3 
EIF 2018a 3.3 75.3-75.5 78.9-93.9 4.8 72.9 3.1 75.6-75.9 
Y10 2027a 0.4-0.8b 96.6b-96.8 88.1-99.9 1.5-1.9b 90.7-77.4b 0.3-0.7b 97.4-78.4b 
EOI 2033a 0.2 99.2b-99.4 89.2-99.9 0.8 96.3 0.1 99.6-99.8 
NZL MFN 
2018 2.8 47.7 59.1-80.0 1.1 78.4 3.1 41.8 
EIF 2018 0.2 93.3 74.4-96.5 0 99.9 0.3 92.1 
EOI 2024 0 100 100 0 100 0 100 
SGP MFN 
2018 0 99.9 99.7-100.0  0 99.6 0 100 
EIF & 
EOI 2018 0 100 100 0 100 0 100 
VNM MFN 
2018c 10.5 31.4 19.7-59.2 17.7 11.4 9.1 35.5 
EIF 2019 4.4-5.7b 66.6b-66.7 51.6-93.7 9.1-11.3b 41.2b-41.5 3.5-4.5b 71.8 
Y10 2028a 0.5-0.7b 93.4b-97.6 98.0-99.9 0.8-1.2b 88.3b-95.2 0.5-0.6b 94.5b-98.1 
EOI 2038a 0.4 98.3 98.6-100.0  0.3 99.2 0.4 98.1 
Note:  More than one figure corresponds to minimum -maximum values.  
NA Not available.  
a One year after on trade between Mexico and Viet Nam due to the non -application of the catch -up 
mechanism.  
b Liberalization is delayed by one year on trade between Mexico and Viet Nam due  to the non -
application of the catch -up mechanism.  
c While the Agreement only entered into force for Viet Nam in 2019, 2018 MFN rates were used 
instead due to unavailability of 2019 rates.  
 
Chart 3.3 illustrates the HS Chapters and Sections in which some of the Parties will retain 
dutiable tariff lines upon completion of their respective tr ansition periods. As indicated previously, 
the majority of tariff lines remaining dutiable refer to agricultural products. Among these Parties, 
only Australia fully liberalizes imports of agricultural products. When considering all Parties, lines 
remaining  dutiable are those of Chapters 1, 2, 4, 7, 9 -12, 16 -23, 25, 35 and 87. The highest 
concentration of remaining dutiable lines are found in dairy products (Chapter 4) for Canada and 
Japan; products of the milling industry and preparations of cereal in Japan  (respectively Chapters 
11 and 19), and automotive (Chapter 87) in Mexico and Viet Nam. In the case of Australia, all 
remaining dutiable lines refer to used automobiles.  WT/REG395/1  
 
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  Chart 3.3: All Parties: Number of dutiable lines  remaining , by HS Chapter and Section
 
 
Note:  Based on HS 2017 nomenclature , except for Mexico which is based in HS 2012 nomenclature.  
Source:  WTO Secretariat calculations based on information provided by the Parties.  
 
3.1.4   Tariff rate quotas  
Canada, Japan, Mexico and Viet Nam provide TRQs under the Agreement. The TRQs may be 
either Agreement -wide or country -specific; they are included in Appendix A to each Party's tariff 
schedule in Annex 2 -D. Some of Viet Nam 's TRQs  are allocated from existin g WTO TRQs.  
Detailed disciplines regarding TRQ administration are provided in Section D of Chapter 2. They 
build upon Article XIII of GATT 1994, the WTO Import Licensing Agreement and on Article 2.12 
(Import Licensing) of the Agreement, with additional dis ciplines addressing administration and 
eligibility; the allocation mechanism is applied where TRQ access is granted on a basis other than 
first-come first -served; return and reallocation of unused TRQs; and transparency (Articles 2.29 -
2.32 respectively).  
Table 3.4 provides a summary of TRQs under the Agreement; with the exception of Viet Nam, 
all TRQs are provided for agricultural products. For Canada and Mexico, the general principle is that 
of duty -free in -quota rates and MFN rates for out -of-quota imports – though Canada's out -of-quota 
rates for whey powder and substitutes for butter are progressively reduced, becoming duty -free on 
1 January 2028 and 1 J anuary 2023 respectively. Detailed information can be found in the respective 
Appendixes by Party to this Factual Presentation.  
020406080100120140160
01 02 04 07 09 10 11 12 16 17 18 19 20 21 22 23 25 35 87
I II IV V VI XVII
HS Chapter & Section AUS CAN
MEX (from all Parties) MEX-JPN
MEX-OTHERS JPN (from all Parties)
JPN (from MEX-NZL-SGP) VNMNotariff linesWT/REG395/1  
 
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  Table 3.4: TRQs under the Agreement  
Goods subject to TRQs  Parties granting TRQs  
CAN JPN MEX VNM 
Chicken      
Turkey      
Dairy      
Eggs     
Wheat      
Barley      
Rice     
Malt     
Starch      
Flour     
Sugar      
Candies      
Ice-cream and mixes      
Confectionery      
Cocoa powder and preparations      
Chocolate      
Food preparations      
Coffee, tea mixes, food Preparations and doughs      
Prepared Edible Fats and Oils      
Food preparations containing dairy      
Unmanufactured Tobacco; Tobacco Refuse      
Used vehicles      
From WTO TRQs  
Eggs     
Sugar      
Salt     
TOTAL number of TRQs      
Of which Agreement -wide 20 33 - 3 
Country -specific  - 12 9 - 
From WTO TRQs  - - - 3 
Note:  Products subject to TRQs by each Party are indicated in grey.  
Source:  Appendix A to each Party's Annex 2 -D. 
 
3.2  Rules of origin  
Rules of origin are set out in Section A of Chapter 3; textiles -specific rules of origin are 
included in Chapter 4.  
The basic requirements for a good to be considered originating, as in Article 3.2, are:  
a. it is wholly obtained or produced entirely in  the territory of one of more of  the Parties; or  
b. it is produced entirely in the territory of one or more of  the Parties exclusively from 
originating materials; or  
c. it is produced entirely in the territory of one or more of the Parties by using non -originating 
materials provided that the good compl ies with the product -specific rules of origin 
contained in Annex 3 -D – or Annex 4 -A for textiles and apparel - as follows:  
i. it goes through a change in tariff classification (CTC)21, or 
ii. it meets a minimum regional value content (RVC) benchmark, or  
 
21 In many instances, that may also exclude the use of certain non -originating materials.  WT/REG395/1  
 
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  iii. in a very few cases,22 it goes through a CTC and meets requirements concerning a 
minimum RVC,  
iv. for Chapters 27 -38 and for goods under HS 39.01 -39.14 (except sub -headings 
3903.11 or 3907.60), chemical react ion rules23 may also be used as an alternative to 
the CTC requirement,  
v. for textiles, requirements generally involve a CTC and specific processes taking place 
within the Parties; and  
d. it meets all other applicable criteria in Chapter 3.  
The Agreement provide s four methodologies for calculating the RVC:  
a. methods based on the transaction value of the good:  
i. the build -down method is based on the value of non -originating materials used in 
production;  
ii. the build -up method is based on the value of originating material s used in production; 
and 
iii. the focused value method is based on the value of only certain specified non-
originating materials used in production  
b. the net cost method, which only applies to certain automotive goods, calculates the cost 
of all non -originating materials used in relation to the total cost of the good. Article 3.9 
includes additional details and definitions associated with the net cost method.  
The CTC is the general rule, more frequently so at the heading level – though requirements 
at the chapter  and subheading levels are also frequent (the former in particular for agricultural and 
mineral products). Whenever a value -added rule applies, the thresholds for RVC are generally a 
minimum of 40% of originating materials or a maximum of 60% of  non-origin ating materials under 
the build -down method, a minimum of 30% of originating materials under the build -up method, or 
a minimum of 50% of specific originating material under the focused value method. Article 3.7 
stipulates how to determine the value of a ma terial which is imported, acquired in the territory where 
the good is prduced or self -produced. Article 3.8 further details the valuation rules by specifying  that 
certain expenses may be  added to the value of originating materials or deducted from the valu e of 
non-originating materials. The Chapter does not include a  list of minimal operations that do not 
confer origin.  
A de minimis/tolerance rule (Article 3.11) applies so that the good is considered originating if 
the value of all non -originating materials that do not comply with the required CTC do not exceed 
10% of the f.o.b. value of the good. Additional RVC requirements will apply without any change. 
Annex 3 -C specifies that the tolerance rule does not apply to certain dairy products; citrus fruits and 
orange juices; fats and oils; peaches, pears or apricots, when used in the production of certain goods 
(respectively other dairy and related goods; orange juices or some other fruit or vegetable juices; 
soybean, groundnut, sunflower or rape oils (headings 1 5.07, 15.08, 15.12 and 15.14); goods of 
heading 20.08). Article 4.2 provides the tolerance rule for textile and apparel goods, see 
paragraph  3.41.    below . 
Discipl ines for intermediate materials used in the production of a good (Articles 3.6 and 3.10), 
provide for:  
 
 
22 HS 1901.20, 1901.90, 2106.90 and 2309.90.  
23 These include the following, depending on the good: distillation rule, direct blending rule, diluent rule, 
purific ation rule, mixing and blending rule, change in particle size rule, standards materials rule and isomer 
separation rule.  WT/REG395/1  
 
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  a. the absorption principle – i.e. non -originating materials that are further processed and 
qualify as originating are fully considered as originating when  used in the production of 
another good in a CPTPP Party; and  
b. full cumulation, so that both the value of originating materials used and of the processing 
carried out  in any of the Parties during production, is counted towards the determination  
of origin.  
The Agreement has product -specific rules of origin for automotive products24 (Article 3.9):  
a. a net -cost method, designed specifically for the automotive sector, requires an RVC 
threshold of 45%;  
b. the build -down method can be used as an alternative, with an R VC threshold of 55% 
(contrasting with the 45% threshold applying generally for other products);  
c. a technical test method can also be used, whereby originating status is conferred provided 
certain specific operations take place in the territory of one or mor e Parties. For some 
goods, this may also require a minimum amount of RVC. All specific requirements and 
relevant HS positions are included in Appendix 1 to Annex 3 -D; and  
d. for automotive products subject to tariff differentials in Mexico, the rules of orig in provide 
for bilateral cumulation by  requir ing that a CTC take place in either the Mexican territory 
or the exporting Party's territory, to the exclusion of any other Party (Appendix C to 
Mexico's Annex  2-D); and  
e. through a side letter, Australia and Canada agreed to apply less strict rules o f origin 
compared to those applied to other trade under the Agreement ) for a good of heading 
87.03 (motor vehicles for the transport of persons) traded between them.25  
For goods where tariff differentials apply - as indicated in paragraph 3.17.   above  - "origin" 
from a Party is defined in accordance with rules of  origin that diverge from those otherwise generally 
applied (more details are provided in the Appendix by Party to this Factual Presentation).  
Chapter 4 on textiles specifies that the provisions of Chapter 3 apply, except when different 
rules are set in Ch apter 4 - in particular textiles product -specific rules of origin (Annex 4 -A) and 
tolerance thresholds (paragraph 2 -4 of Article 4.2). In summary, they are drawn from the "yarn 
forward" principle in textile production and provide the following:  
a. yarn produc tion and all subsequent operations occur in the Parties. Further, sewing thread 
of heading 52.04, 54.01 or 55.08 , or yarn of heading 54.02 used as sewing thread is 
originating only if such sewing thread is both formed and finished in the territory of one 
or more of the Parties.  The exceptions to these  are luggage , including handbags, synthetic 
baby clothes, and bras;  
b. tolerance rules for HS Chapters 50 -60 allow non -originating materials that do not comply 
with the CTC requirements of up to 10% of that good' s total weight, while those for HS 
Chapters 61 -63 limit the use of non -originating fibr es and yarns to a maximum of 10% of 
that component's total weight. Besides  this, elastomeric yarn has to be wholly formed ; 
c. by way of derogation from the rules of origin,  products included in the "short -supply" list 
– i.e. materials generally not produced by the  Parties – of Appendix 1 to Annex 4 -A can 
be used if they are non -originating, provided they meet the end -use requirements 
specified in that same Appendix, if appli cable (paragraph 7 of Article 4.2). A permanent 
 
24 These are goods of subheadings 8407.31 -8407.34, 8408.20 and 8409.91 -8409.99, as well as 
headings 87.01 -87.09 and 87.11.  
25 Either a CT C at the heading level, or an RVC requirement of either 40% or 50% under the net cost or 
build down methods, respectively (instead of 45% -55%).  WT/REG395/1  
 
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  derogation applies to 179 materials, while a temporary derogation of five years from the 
CPTPP's entry into force appl ies for  eight types of fabrics;  
d. different rules of origin apply for folkloric or tradition al garment s, such as kimonos; and  
e. through a side letter, Mexico and Viet Nam agreed to modify the disciplines specified in c. 
above on trade between them:  
i. for certain materials under the permanent short -supply list, Mexico sets a maximum 
amount of duty -free imports from Viet Nam - the "tariff preferential limits (TPLs)". This 
amount is increased annually during ten years, and remains at that volume 
thereafter;26 
ii. for babies' synthetic garments,27 Mexico also provides for either a TPL, if the specific 
rules of origin are satisfied, or the original tariff treatment without any limitation if 
more strict rules of origin are satisfied; and  
iii. Viet Nam is to issue a "Certificate of Eligibility" for each ex porters' shipment and to 
establish a secure website allowing Mexico to validate the authenticity of these 
certificates.28 As for Mexico, it has to publish online monthly information on the use of 
the TPLs.   
Neither diagonal cumulation nor outward -processin g apply under the Agreement. Transit 
through non -parties, with or without trans -shipment, is authorized only if the good (a) does not 
undergo any operation outside the territory of the Parties other than unloading, reloading, separation 
from a bulk shipmen t, storing, labelling or marking required by the importing Party, or any other 
operation necessary to preserve it in good condition or to transport the good to the territory of the 
importing Party; and (b) remains under the control of the non -party's custo ms administration 
(Article  3.18).  
Additional rules specify the treatment for fungible goods or materials, sets or assortments 
(Articles 3.12 and 3.17 respectively). A Committee on Rules of Origin is established (Article 3.32).  
3.3  Export duties and charges, an d quantitative restrictions  
Article 2.15 imposes a general prohibition on duties, taxes and charges connected to exports 
to another Party, unless these are also applied to the domestic consumption of the same good, or 
otherwise included in the exceptions l ist of Annex 2 -C.  
Among the Parties, only Viet Nam has been granted exceptions to this general prohibition29 
for 469 tariff lines (5% of the 2018 tariff, on HS 2012 basis). These are either to be eliminated within 
a maximum transition period of 15 years o r, if maintained, "bound" at the base rate (see this Factual 
Presentation's Appendix for Viet Nam).  
Article 2.10 also proscribes prohibitions/restrictions on the exportation or sale for export of 
any good destined for the territory of another Party, except  in accordance with Article XI of GATT 
1994 or in accordance with Annex 2 -A. Export price requirements (except price undertakings under 
countervailing and antidumping duty orders) and voluntary export restraints inconsistent with the 
WTO Agreements on Subs idies and Countervailing Measures and on Anti -Dumping are also 
prohibited. The following measures are however authorized under Annex 2 -A: 
a. for all the Parties, export restrictions o n rough diamonds (see paragraph 3.11.  a above , 
mutatis mutandis);  
 
26 Mexico will not apply the annual TPL increase if imports of the given material do not reach 80% of the 
establi shed TPL amount.  
27 This applies to HS 6111.30 and 6209.30, and napkins, napkin liners or similar articles for babies of 
synthetic fibres of heading 96.19.  
28 See www.ecosys.gov.vn.  
29 Exceptions are also provided to Malaysia which has not ratified the Agree ment.  WT/REG395/1  
 
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  b. for Canada, export restrictions o n logs of all spe cies and unprocessed fish. Under a  side 
letter with Japan,  Canada shall issue permits upon request for the export of logs destined 
for Japan following the procedures set out in Canada's Export and Import Permits Act, its 
applicable notices and regulations,  and provincial and territorial laws and regulations ;  
c. for Mexico, export restrictions on mineral fuels, oils and waxes of HS 2709 -2712. In the 
context of monitoring the economic relationship and partnership among the Parties 
(Article  27.2), the CPTPP Comm ission is to review this authorization by the end of 2021 
and at least every five years thereafter; and  
d. for Viet Nam, export prohibition of round and sawn timber produced from domestic natural 
forests, and of wooden products (except handicrafts and products produced from wood of 
cultivated forests, imported wood or artificial pallet).  
Article 2.13 provides for disciplines on transparency in export licensing procedures - 
notification, publication and consultation requirements, and associated timeframes. In particular it 
requires a Party using export licenses to notify the other Parties in writing, within 30 d ays of the 
date of entry into force of the Agreement, of the publications in which its export licensing procedures 
are set out, including addresses of relevant government websites. Canada, Japan, Mexico, Singapore 
and Viet Nam have export licensing require ments; they have all fulfilled the notification requirement.  
Any new export licensing procedure, or any modification of an existing procedure shall be published 
as soon as practicable but no later than 30 days after the new procedure or modification takes effect. 
The Article also provides details on information that shall be included in the publications.  
Disciplines on fees and charges on or in connection with exportation are those presented in 
paragraph 3.14.    above , mutatis mutandis . 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
Chapter 7 of the Agreement covers Sanitary and Phytosanitary Measures (SPS) and affirms 
the Parties' rights and obligations under the WTO SPS Agreement (Article 7.4).30 In line with the 
objective of reinforcing and building on the SPS Agreement, numerous disciplines go beyond the 
WTO Agreement.  
Regarding equivalence (Article 7.8),  the "Parties shall apply equivalence to a group of 
measures or on a systems -wide basis, to the extent feasible and appropriate".  Singapore has 
evaluated the SPS measures of other CPTPP Parties including Australia, Canada, Japan, Mexico and 
New Zealand, an d has authorised the import of various food products following satisfactory 
evaluation. As of February 2021, Mexico was yet to apply equivalence to a group of measures or on 
a system -wide basis.  Procedures for performing equivalence assessments and determi nations are 
also specified. An importing Party is required to recognise equivalence to an exporting Party's SPS 
measure if the exporting Party can objectively demonstrate that, in relation to the importing Party's 
measure, its measure either achieves the s ame level of protection or has the same effect in achieving 
the objective. In the latter case, however, dispute settlement cannot be invoked.  
Risk analysis provisions (Article 7.9) increase transparency as compared to the respective 
provisions of the WTO Agreement, while reaffirming the basis of Article 5 of the SPS Agreement – 
namely the importance for SPS measures to be based on scientific principles and conform with 
international standards, guidelines or recommendations. Measures that do not conform wit h 
international standards, guidelines or recommendations are to be based on documented and 
objective scientific evidence that is rationally related to the measures. In such cases, however, 
dispute settlement cannot be invoked. The Article clarifies that a Party may require that risk analysis 
be conducted before the good is granted access to its market. Unless in cases of emergency (under 
 
30 Chapter 7 also states that nothing prevents a Party from adopting or maintaining halal requirements 
for food and food products in accordance with Islamic law.  WT/REG395/1  
 
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  Article 7.14), if an importing Party is undertaking a review of an SPS measure, it cannot stop the 
previously authorized importation of a good of another Party solely for that reason.  
Article 7.10 – "Audits" – is a novel provision compared to the SPS Agreement. It authorizes a 
Party to audit the exporting Party's competent authorities and associated or designated inspection  
systems in order to determine the Party's ability to provide required assurances and meet the SPS 
measures of the importing Party. A footnote indicates that "nothing in this Article prevents an 
importing Party from performing an inspection of a facility f or the purposes of determining if the 
facility conforms with the importing Party's sanitary or phytosanitary requirements or with SPS 
requirements that the importing Party has determined to be equivalent to its SPS requirements." 
Prior consultation and coo peration between the involved authorities are foreseen.  
As regards recognition of pest - or disease -free areas or areas of low pest or disease 
prevalence, Article 7.7 elaborates on provisions of the relevant Article of the SPS Agreement by 
providing detaile d procedural disciplines; some are however of a best endeavour nature. Singapore 
has established regionalisation arrangements with Canada, Japan and Australia for diseases 
including Avian Influenza, and Classical Swine Fever, to minimise disruption to trad e in event of 
disease outbreaks.  
Import check provisions (Article 7.11) are somewhat inspired by Article 8 and Annex C of the 
WTO SPS Agreement. They define procedural modalities to ensure that a Party's import programme 
is based on the risks associated wi th importation, and that the import checks are carried out without 
undue delay. In terms of certification (Article 7.12), the Parties recognize that assurances with 
respect to SPS requirements may be provided through means other than certificates and that 
different systems may be capable of meeting the same SPS objective. Some modalities are defined 
in case a Party applies certification requirements including that "t he Parties shall promote the 
implementation of electronic certification and other technologi es to facilitate trade ." 
Article 7.14 authorizes Parties to adopt an emergency measure necessary for the protection 
of human, animal or plant life or health; prompt notification shall take place through the primary 
representative and contact points. Any su ch measure shall be reviewed in terms of its scientific basis 
within six months from its application, and periodically thereafter if the emergency measure is 
maintained after the first review. Other Parties shall  be informed of the results of the review up on 
request.  
Beyond encouraging cooperation among the Parties (Article 7.15), the Agreement establishes 
a bilateral mechanism of "cooperative technical consultations" (CTC, Article 7.17) under which a 
Party may request technical consultations on any matter under the SPS Chapter that it considers as 
adversely affecting its trade if it deems that administrative procedures that the other Party 's 
competent authority has available, or bilateral or other mechanisms, would not resolve the matter. 
Specific timeframe s are associated with the CTC (normally 180 days from the request). Recourse to 
the Agreement's dispute settlement procedures can only be initiated if the CTC has been 
unsuccessful.31  
Besides the above -mentioned requirement, the dispute settlement procedu res apply to the 
SPS Chapter (Article 7.18), with the following exceptions:  
a. no recourse to dispute settlement is possible for issues referred to in paragraphs 3.50.  -
3.51.   above ; 
b. for a responding Party, a grace period  of one year (from date of entry into force for the 
Agreement for that Part y) for complaints regarding equivalence, audits and import checks 
(Articles 7.8, 7.10 and 7.11 respectively); and  
c. for a responding Party, a two-year grace period  (from date of entry into force for the 
Agreement for that Party) for complaints  regarding sci ence and risk analysis (Article 7.9.).  
 
31 Even if technical consultations are conducted under Article 7.17, if a Party subsequent ly bring s a 
dispute settlement proceeding under Chapter 28, the Parties would still have to go through the consultations 
phase required in Chapter 28 (Article 28.5).  WT/REG395/1  
 
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  d. In case of disputes involving scientific or technical issues, a panel should seek advice from 
experts chosen by the panel in consultation with the Parties involved in the dispute.  
As of February 2021, no dispute under  CTC or Chapter 28 been initiated . 
An SPS Committee is established under Article 7.5. Also foreseen in the Chapter is the need 
to identify SPS -related competent authorities and to establish SPS contact points. Contact points 
have been notified for most if not all of the Chapters, some of which are generic virtual secretariat 
contact points.  
3.4.1.2   Technical barriers to trade  
Chapter 8 on Technical Barriers to Trade (TBT) builds upon and in many respects goes further 
than the WTO TBT Agreement. Its objectives and scope - technical regulations, standards and 
conformity assessment procedures of central government bodies - are in line with those of the WTO 
TBT Agreement (Articles 8.2 and 8.3). A best endeavour clause exists as regards observance by 
"regional or local government bodies, as the case may be, on the level directly below that of the 
central level of government"32 of the  substantive obligations under Articles 8.5, 8.6 and 8.8.  
Certain provisions of the TBT Agreement are incorporated into the Agreement – namely 
Articles  2.1, 2.2, 2.4, 2.5, 2.9 -2.12, 5.1 -5.9, as well as paragraphs D, E and F of Annex 3. In light 
of that, r ecourse to CPTPP dispute settlement provisions is prohibited for disputes exclusively alleging 
violations of the incorporated TBT Agreement provisions. Further, the definitions in Annex 1 of the 
TBT Agreement are also incorporated into Chapter 8, mutatis m utandis . 
Article 8.3 clarifies that nothing in Chapter 8 shall prevent a Party from adopting or 
maintaining technical regulations, standards or conformity assessment procedures in accordance 
with its rights and obligations under the Agreement, the TBT Agre ement and any other relevant 
international agreement. The Parties also agree that the determination of the existence of an 
international standard, guide or recommendation will be made in accordance with the relevant 
Decisions and Recommendations adopted by  the WTO Committee on Technical Barriers to Trade 
Since 1 January 1995 (G/TBT/1/Rev.12), as may be revised, as issued by the WTO  TBT Committee 
(Article 8.5).33 
On conformity assessment (Article 8.6), each Party shall provide national treatment to all 
confo rmity assessment bodies located in the territory of any other Party, and apply the same or 
equivalent procedures, criteria and other conditions as it applies to bodies in its own territory.  
Transparency disciplines (Article 8.7) include detailed publicati on and notification 
requirements, generally going further than those of the TBT Agreement. Greater transparency in the 
process of formulating and developing standards technical regulations and conformity assessment 
procedures is also ensured by inviting pu blic participation/ comments before a new measure is 
published as final. The Parties' obligations regarding transparency in TBT measures of either 
local/regional governments are modulated in accordance with the nature of the measure, as follows : 
a. a best end eavour clause to publish  proposals for new/amendments to existing technical 
regulations and conformity assessment procedures and for new final/amended technical 
regulations and conformity assessment procedures  (Article 8.7.7) ; 
b. an obligation to provide acce ss to new final/amended technical regulations and conformity 
assessment procedures , and, to the extent practicable , to proposals for new/amendments 
to existing technical regulations and conformity assessment procedures (Article 8.7.8) ; 
and 
c. a best endeavour  clause regarding notification of proposals for new  technical regulations 
and conformity assessment procedures  that have a significant effect on trade, as defined 
by the TBT Agreement.  (Article 8.7.11)  
 
32 In the TBT Agreement, reference is only made to local levels of government.  
33 The most recent one has been distributed as G/TBT/1/Rev.14 dated 24 September 2019.  WT/REG395/1  
 
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Building on Articles 2.12 and 5.9 of the TBT Agreement , Article 8.8 defines the "reasonable 
interval" between publication and entry into force of technical regulations/conformity assessment 
procedures to be normally a period of not less than six months.  
Cooperation and trade facilitation provisions (Article 8 .9) go further than those in the relevant 
Articles of the TBT Agreement. Article 8.10 on "Information Exchange and Technical Discussion" 
includes  commitments for the Parties to provide information when requested and to engage in 
technical discussions regar ding any matter arising under Chapter 8 and to endeavour to resolve the 
matter as expeditiously as possible.  The Article also clarifies that in case of TBT measures by 
regional/local governments that may have a significant effect on trade, a Party may requ est technical 
discussions with another Party.  
A TBT Committee is established (Article 8.11) to strengthen the Parties' joint work in the fields 
of technical regulations, conformity assessment procedures and standards with a view to facilitating 
trade betwe en the Parties.  
Seven sectoral annexes complement Chapter 8. The Annexes shall be reviewed at least every 
five years and new annexes on other sectors may eventually be negotiated to further the objectives 
of the chapter. As of September 2020, the following  Annexes are in force:  
a. 8-A: Wine and Distilled Spirits, dealing with labelling, certification, and application of TBT 
measures ; 
b. 8-B: Information and Communications Technology Products, dealing with the use of 
cryptography, standards or technical regulation  for electromagnetic compatibility of 
information technology equipment products and regional cooperation activities on 
telecommunications equipment. A provision encourages Parties to implement the APEC 
Mutual Recognition Arrangements for Conformity Assessm ent of Telecommunications 
Equipment and for Equivalence of Technical Requirements (concluded on 8 May 1998 and 
31 October 2010 respectively);  
c. 8-C: Pharmaceuticals, addressing regulation of pharmaceutical products, marketing 
authorisation, regulatory requir ements for pharmaceutical products, and collaboration on 
pharmaceutical inspection;  
d. 8-D on Cosmetics and 8 -E on Medical Devices, each dealing with the preparation, adoption 
and application of TBT measures , marketing authorisation and notification procedure s 
affecting trade in the corresponding products;  
e. 8-F: Proprietary Formulas for Pre -packaged Food and Food Additives, addressing the 
preparation, adoption and application of technical regulations and standards and handling 
of the confidentiality information  related to these goods; and  
f. 8-G: Organic Products, dealing with the development and maintenance of TBT measures 
relating to the production, processing, or labelling of products as organic for sale or 
distribution within a Party's  territory.  
In a side letter with Australia, Canada confirms that "Australian dairy products, including those 
under HS Chapter 3504 such as milk protein concentrates, can be utilised in dairy processing in 
Canada to the fullest extent possible, including in cheesemaking." It al so states that nothing in the 
letter is intended to derogate from any rights or obligations under the WTO SPS Agreement and the 
WTO TBT Agreement.  
Canada and Japan have agreed on a series of TBT -related issues on motor vehicles; these are 
presented in Sect ion 3.5.3   below .  
3.4.2   Safeguard mechanisms  
The Agreement  has numerous safeguard clauses. Those applying to all products are included 
in Chapter 6 on  "Trade Remedies"; they provide disciplines relating to the imposition of global WT/REG395/1  
 
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  safeguards (under WTO rules) and for intra -Party safeguards but cannot be applied or maintained 
on any product imported under a TRQ under the Agreement (paragraph 4 of Article  6.2).  
There are also product -specific safeguard measures – on agricultural, textiles and forestry 
products in other chapters of the Agreement. Finally, a special safeguard mechanism has been 
designed for motor vehicles traded between Canada and Japan.34 All these safeguard regimes are 
presented below.  
No Party shall apply or maintain two or more safeguard measures on the same good at the 
same time, including those applied under the WTO (paragraph 5 of Article 6.2).  
As of February 2021, no safegu ard measure has been applied by the Parties.  
3.4.2.1   Global Safeguards  
Article 6.2 provides that nothing in the Agreement affects the rights and obligations of its 
Parties under GATT Article XIX and the WTO Safeguards Agreement. A Party initiating a global 
safegua rd investigation shall provide other Parties with an electronic copy of the notification provided 
under Article 12.1(a) of the WTO Safeguards Agreement.  
A Party taking a safeguard measure under the WTO may exclude imports of originating goods 
subject to a  TRQ under the Agreement if such imports are not a cause of serious injury or threat 
thereof (paragraph  4 of Article 6.2).  
3.4.2.2   Bilateral safeguards  
Intra-Party safeguards that can be applied on all products with the exception of those 
imported under TRQs are l abelled "transitional safeguards"; its disciplines are those of Article 6.3.  
A safeguard measure may be imposed if an originating good of another Party, individually or 
collectively (i.e. two or more Parties,) is being imported in such increased quantitie s, in absolute 
terms or relative to domestic production, and under such conditions, as to cause or threaten to cause 
serious injury to the domestic industry that produces a like or directly competitive good. If the 
measure is applied to more than one Party , the Party imposing the measure must be able to 
demonstrate that imports from all Parties subject to the safeguard have increased since the 
Agreement's entry into force.  
A Party may apply a transitional safeguard measure for a period that may not exceed t wo 
years; an extension of one year is possible if, in accordance with Article 6.5 procedures, this is 
necessary to prevent or remedy serious injury and to facilitate adjustment.  
Safeguards can only be taken during the "transition period", defined as follo ws: 
a. the three -year period following entry into force  for that party  – i.e. up to 29 December 
2021 for Australia, Canada, Japan, Mexico, New Zealand and Singapore, and 13 January  
2022 for Viet Nam); or  
b. for goods for which the tariff elimination occurs over a longer time -period, the actual period 
of its staged tariff elimination . 
The safeguard can take the form of either the suspension of a further reduction of customs 
duty or an increase in the tariff rate to a level not exceeding the lesser of (i) the appli ed MFN rate 
in effect at the time of the application of the safeguard measure; and (ii) the MFN tariff applied on 
the day immediately preceding the Agreement's entry into force for that Party.  
Measures of more than one year are to be progressively liberali zed. Upon termination of the 
safeguard measure, the tariff shall revert to that which would be in effect if it had never been applied. 
A safeguard measure cannot be applied more than once on the same good.  
 
34 Under the TPP, the special mechanism also applied to trade between Japan and the United Sta tes. WT/REG395/1  
 
- 33 - 
 
  
The investigation is to be conducted in accordance  with Articles 3 and 4 of the WTO Safeguards 
Agreement. While notification procedures closely follow those of Article 12 of the Safeguards 
Agreement, the Agreement adds a notification obligation in case the safeguard measure is modified. 
Provision is also made for retaliation in the form of the suspension of substantially equivalent 
concessions if consultations on compensation are not successful. Unlike Article 8 of the Safeguards 
Agreement, the right of suspension can be exercised immediately (though a 30 -day notification is 
required).  
In accordance with a side letter between Australia and New Zealand, bilateral safeguards 
cannot be imposed on trade between them.35  
3.4.2.3   Special  safeguards  
3.4.2.3.1   Agriculture  
The Agreement provides for special safeguards for agricultura l products (SSGs) for Japan only 
(paragraph 7 of Annex 2 -D and Appendix B -1). They can be applied to imports from all Parties.  
The SSGs can be applied on 74 tariff lines covering beef, pork, processed pork, whey protein 
concentrate, whey powder, oranges an d race -horses imported from the Parties. Generally, the 
trigger levels are quantity -based but in some instances, price is also taken into account. For beef 
under HS headings 02.01 and 02.02, imports from Australia under the Agreement between Japan 
and Aust ralia for an Economic Partnership (JAEPA)36 are counted towards the aggregate volume of 
imports. Safeguards can be applied up to the elimination of the tariff on the product; in cases where 
the product remains dutiable, the safeguards expire if they have not been applied for two or three 
consecutiv e years depending on the product. Table 3.5 provides a summary of SSG disciplines.  
Safeguard measures take the form of an increase in tariffs to a level not exceeding the lesser 
of (a) the MFN tariff rate applied at the time of the application of the SSG; (b) the MFN tariff applied 
on 29 December 2018; and (c) the tariff rate set out in the Appendix (which is periodically reduced). 
The Appendix also includes specific transparency measures applying to SSGs.  
Safeguard measures for pork and processed pork are applied to imports from an individual 
Party. Th e definition of an "originating agricultural good" under the Appendix – "wholly obtained in 
that Pa rty or if the last change of tariff heading took place in that Party" is applied to identify from 
which Party the pork or processed pork is imported . 
Table 3.5: Japan's quantity and price -based agricultural sa feguards  
HS and Product  Timeframe  Trigger  Tariff rate set in  
the Appendixa 
Beef (SG1*)  
020110.000, 020120.000, 
020130.010, 020130.020, 
020130.030, 020130.090, 
020210.000, 020220.000, 
020230.010, 020230.020, 
020230.030, 020230.090  Indefinite  Aggregate 
volume, increased 
annually  Periodically reduced.  
Y1-Y3: 38.5% down to 18% in 
Y15; thereafter either 1% less 
or same rate, depending on 
whether measure applied in 
previous fiscal year.  
Beef (SG1**)  
020610.020, 020629.020  Indefinite  Aggregate 
volume, increased 
annually  Periodically reduced as above, 
from Y1: 39%.  
Pork (SG2)  
020311.020, 020311.031, 
020311.032, 020311.040, 
020312.022, 020312.023, 
020312.024, 020312.025,  
020319.022, 020319.023, 
020319.024, 020319.025, 
020321.020, 020321.031, 31 March 2029  Y1-Y4: Volume, 
by Party  
From Y5, volume 
and price, by 
Party Periodically reduced.  
For some products,  
Y1-Y4: 4% down to 2.2% on 
Y10-Y11. For other products, 
specific rates.  
 
35 The side letter states that Chapter 6 shall not create any rights or obligations between them; under 
their existing CER Agreement, the transitional safeguard mechanism has expired.  
36 JAEPA entered into force on 2015. Japanese tariffs for beef under headings 02.01 and 02.02 are 
partially liberalized during a transition period lasting until 2031, but they remain dutiable afterwards.  WT/REG395/1  
 
- 34 - 
 
  HS and Product  Timeframe  Trigger  Tariff rate set in  
the Appendixa 
020321.032, 020321.040, 
020322.022, 020322.023, 
020322.024, 020322.025, 
020329.022, 020329.023, 
020329.024, 020329.025, 
020630.093, 020630.094, 
020630.095, 020630.099, 
020649.093, 0206 49.094, 
020649.095, 020649.099  
Processed Pork (SG3)  
021011.010, 0210 11.020, 
021012.010, 021012.020, 
021019.010, 021019.020, 
021099.011, 021099.019, 
160241.011,160241.019, 
160242.011,160242.019, 
160249.210, 160249.220  31 March 2029  Volume, by Party  Periodically reduced.  
Y1-Y4: 85% of the base rate  
Y5-Y9: 60% of the base rat e 
Y10-Y11: 45% of the base 
rate 
WPC (SG4*)  
040410.127 , 040410.137, 
040410.147, 040410.167, 
040410.177, 040410.187  Indefinite but prohibited 
if no SSG is applied 
during any three 
consecutive fiscal years 
after 1 April 2038.  Aggregate 
volume, increased 
annually  Periodically reduced.  
Y1-Y5: 29.8% + specific rate, 
down to 13.4% + specific rate 
in Y16 -Y20; thereafter 
reduced by (if not applied in 
previous fiscal year) 1.9% 
plus 10.7 yen/kg, or (if 
applied in previous fiscal year) 
1% plus 5 yen/kg . 
Whey Powder (SG4**)  
040410.126 , 040410.136, 
040410.146, 040410.166, 
040410.176, 040410.186  Indefinite but prohibited 
if no SSG is applied 
during any two 
consecutive fiscal years 
after 1 April 2033.  Aggregate 
volume, increased 
annually  Periodically reduce d. 
Y1-Y5: 29.8% + specific rate 
down to 13.4% + specific rate 
in Y11 -Y15; thereafter 
reduced by (if not applied in 
previous fiscal year) 2% plus 
4 yen/kg, or (if applied in 
previous fiscal year) 1% plus 
2 yen/kg . 
Fresh Oranges (SG5)  
080510.000  
 31 March 2025  Aggregate 
volume, increased 
annually  Periodically reduced.  
Y1-Y4: 28% down to 20% on 
Y5-Y7  
Race Horses (SG6)  
010129.290  
 31 March 2033  Price Depends on the difference 
between price of imports and 
the trigger price, reduced 
periodically.  
a Applied SSG duty as described in paragraph 3.87.   above . 
Note:  In brackets, the category referenced in the Appendix.  
Source:  Appendix B -1 of Annex 2 -D for Japan.  
 
3.4.2.3.2   Forestry  
The Agreement provides for a special safeguard for forest goods for Japan only (paragraph 7 
of Annex 2 -D and Appendix B -2). They can be applied on forestry products under 35 tariff lines if 
imports from Canada, New Zealand or Viet Nam are above the respective trigger levels.37 While in 
some cases the use of safeguard measures are time -limited, in other instances the right to apply 
them does not expire. Table 3.6 provides a summary of these disciplines.  
Safeguard measures take the form of an increase in tariffs (see paragraph 3.81.   above ). 
 
37 Country -specific SGs can be used for imports from Chile and Malaysia on an additional 13 lines.  WT/REG395/1  
 
- 35 - 
 
  Table 3.6: Japan's quantity -based forestry safeguards  
HS and Product  Origin of 
Imports  Timeframe  Trigger level and  
other details  
Coniferous – SG11  
440711.110, 440711.190, 
440712.110, 440712.190  Canada  Indefinite  Aggregate volume increased annually.  
Duty-free on 1 April 2033.  
Particle board – SG12  
441011.110  New Zealand  Until 31 March 2028  Aggregate volume increased annually 
until 1 April 2027.  
Duty-free on 1 April 2028.  
Wood board – SG13  
441011.110, 441012.110, 
441012.190, 441012.900  Canada  Indefinite  Aggregate volume increased annually.  
Duty-free on 1 April 2033.  
Laminated wood – SG16  
441231.118, 441231.198  
441231.918, 441231.928  
441231.932, 441231.938  
441231.948, 441231.958  
441233.110, 441233.190  
441233.911, 441233.912  
441233.991, 441233.992  
441233.993, 441234.110  
441234.190, 441234.911  
441234.912, 441234.991  
441234.992, 441234.993  
441239.991, 441239.992  Viet Nam  Until 31 March 2033  Aggregate volume inc reased annually  
until 1 April 2032 . 
Duty-free on 1 April 2033.  
Laminated wood – SG17  
441239.110, 441239.190  
441239.910, 441239.991  
441239.992  Canada  Indefinite  Aggregate volume increased annually.  
Duty-free on 1 April 2033.  
Laminated wood – SG17  
441239.110, 441239.190  
441239.910, 441239.991  
441239.992  New Zealand  Until 31 March 2033  Aggregate volume increased annually 
until 1 April 2032.  
Duty-free on 1 April 2033.  
Source:  Appendix B -2 of Annex 2 -D for Japan.  
 
A side letter between Canada and Japan (also referred to in paragraph 3.46.  b above ) 
provides for the establishment of a Bilateral Forestry Committee on Forest Products, which will 
undertake to review the necessity of safeguard mechanisms in the trade of forest products . The 
Committee will also undertake to review understandings between the Governments of Canada and 
Japan as described in the side letter  during the fifth calendar year  after the date of entry into force 
of the Agreement and as a standing agenda item in each subsequent calendar year thereafter.  
3.4.2.3.3   Textiles  
The Agreement  has a provision for a special safeguard for textiles.38 It differs from the 
bilateral safeguards described under  Section 3.4.2.2    above  as follows:  
a. imposition is possible for up to five years following the good's full liberalization ( instead of 
only during the transition period) ; 
b. the suspension of a further reduction of customs duty is not authorized (only the increase 
in tariffs is possible; see paragraph 3.81.    above ); and 
c. its maximum duration is two years plus an extension of two years  (instead of a one -year 
extension).  
3.4.2.3.4   Motor vehicles  
The Agreement provides for a special safeguard regime on Canada -Japan bilateral imports of 
motor vehicles of HS 87.03 that originate in either Canada or Japan (Article 3 of Appendices to each 
 
38 These provisions are common in RTAs of the United States but generally not present in the RTAs of 
the Parties.  WT/REG395/1  
 
- 36 - 
 
  Party's Annex 2 -D).39 This regime provides for the application of a transitional safeguard measure – 
through an increase in tariffs - under terms less stringent than those otherwise generally applied 
and described in Section 3.4.2.2   above, as follows:  
a. safeguards can be imposed for 12 years after the end of the transition period of the good 
concerned (in general: the period is either three years or actual duration of the tr ansition 
period);  
b. maximum duration: three years plus an extension of two years (in general: 2+1 year(s));  
c. no obligation for progressive liberalization of the measure during its application (that is 
generally required);  
d. no limitation on the number of times a good may be subject to safeguard measure (in 
general: only once); and  
e. retaliation in the absence of agreed compensation is only possible after the first two years 
of imposition of the safeguard (in general: that limitation does not apply).  
3.4.2.4   Balance -of-payments safeguards  
The imposition of "temporary safeguard measures" for safeguarding the balance -of-payments 
(BOP) is authorized as regards trade in goods and also trade in services40 (Article 29.3, Section A of 
Chapter 29). In in the event of serious BOP or  external financial difficulties or threat thereof, 
restrictions on payments or transfers for current account transactions (as well as those relating to 
movements of capital) are authorized. The latter may also be restricted if, in exceptional 
circumstance s, payments or transfers relating to capital movements cause or threaten to cause 
serious difficulties for macroeconomic management.  
Numerous disciplines are associated with any such imposition of safeguard measures, 
including: the measures are to be cons istent with the Articles of the IMF; they shall avoid 
unnecessary damage to the commercial, economic or financial interests of another Party; they shall 
not exceed those necessary to deal with the circumstances; and shall not be used to avoid necessary 
macroeconomic adjustment. The measures are be of a temporary nature and be phased out 
progressively as the BOP situation improves; a maximum duration of 18 months is foreseen, though 
in exceptional circumstances it may be extended for additional periods of on e year, unless more 
than half the Parties disagree with the extension.  
The Agreement foresees that such safeguard measures are to be price -based; if not, the Party 
is to explain the rationale for using quantitative restrictions. The provisions of GATT 199 4 Article XII 
and its respective BOP Understanding are incorporated into and made part of the Agreement. Any 
measures taken shall not impair the relative benefits accorded to other Parties under the Agreement 
as compared to the treatment of a non -party. Th e Agreement also includes additional transparency 
and consultation obligations.  
3.4.3   Anti-dumping and countervailing measures  
Section B of Chapter 6 regulates "Antidumping and Countervailing Duties". It provides that 
Parties retain their rights and obligations under GATT Article VI and its Agreements on Antidumping 
and on Subsidies and Countervailing Measures.  
 Parties cannot ha ve recourse to the Agreement's dispute settlement mechanism for any 
matter related to antidumping or countervailing measures, nor to related issues included in Annex 
6-A. Annex 6 -A formalizes practices in terms of timing, notification, maintenance of publi c files, 
insufficient responses to requests for information, disclosure of essential facts and in -person 
verification of information during an investigation; it does not however create additional rights and 
obligations as compared to those of the WTO Agree ments.  
 
39 Canada, Appendix D to Annex 2 -D; Japan, Appendix D -2 to Annex 2 -D. 
40 Issues related to trade in services and BOP safeguards are dealt with in Section 4.6.4.  WT/REG395/1  
 
- 37 - 
 
  
A side letter between Australia and New Zealand (also referred to in paragraph 3.84.   above ) 
states that Chapter 6 shall not create any ri ghts or obligations between them . 
3.4.4   Subsidies and State -aid 
The Agreement prohibits the use of export subsidies on agricultural goods (Article 2.21) 
(Section 3.5.1   of this Factual Presentation).  
Chapter 20 on Environment includes substantive obligations to prohibit subsidies for fishing 
that contribute to overfishing and overcapacity that negatively affect fish stocks that are in an over -
fished condition  (Section 5.12 of this Factual Presentation).  
The Agreement has no further provisions on subsidies and State -aid. 
3.4.5   Customs -related procedures and trade facilitation  
Origin procedures are dealt with in Section B of Chapter 3, while rules governing customs 
administration and trade facilitation are contained in Chapter 5. Additional disciplines specific to 
textiles and apparel goods are included in Chapter 4. All of these are detailed in the Sections below.  
3.4.5.1   Granting of preferential treatment  
The Agreement provi des that an importer may make a claim for preferential tariff treatment 
based on a certificate of origin completed by either the exporter, producer or importer41 
(Article  3.20). Mexico and Viet Nam have a grace period of five years with respect to the cert ification 
of origin by the importer.  
The possibility for self -certification by importers is counterbalanced by precise disciplines 
regarding the rights of an importing Party vis-à-vis certification. In particular, an importing Party 
may require the importe r to provide documents or other information to support the certification; it 
may establish in its law the conditions that an importer shall meet to complete certification of origin; 
or prohibit claims for preferential tariff treatment based on certificatio n of origin completed by the 
exporter or producer if previously a claim for the same good had been based on certification by the 
importer.  
While the Parties may not impose a prescribed format for certification, the minimum data 
requirements for a certification of origin - either in writing or electronically – are specified in Annex 
3-B. The certification of origin is valid for one year from its emission (or longer if so provided for in 
the domestic law of the importing Party) and can apply to one o r more shipments of identical goods, 
not exceed a 12 -month period. Translation of the certification of origin into the language of the 
importing Party may only be required if it is not drafted in English. Further specifications regarding 
the basis for the certification of origin are included in Article 3.21.  
Other arrangements than those in the paragraph above are available to a Party that has 
notified its intention to apply them upon the CPTPP's entry into force (Annex 3 -A). These 
arrangements provide that  the exporting Party may limit the issuance/completion of the certification 
of origin to its own competent authority or approved exporter, respectively.42 The validity of these 
other arrangements is however time -bound; a sunset clause foresees that they re main in force for 
12 years – i.e. until 29 December 2030 (or 13 January 2031 for Viet Nam; paragraph 1 of 
Annex  3-A). Upon notification, the Party is authorized to apply these arrangements for five years; 
an extension of a further five years is possible up on notification 60 days prior to the termination of 
the original derogation.  
A certification of origin is not required when the customs value does not exceed USD 1,000 
(or equivalent) or any higher value established by the importing Party, unless there was  an aim at 
circumventing certification obligations or when the importing Party exempts a good from the 
 
41 While  self-certification by producers or exporters is used in many RTAs, self -certification by importers 
is much less frequent.  
42 Other changes basically adapt the CPTPP requirements by restricting acts associated with the granting 
of preferential treatment to either its own competent authority or an approved exporter.  WT/REG395/1  
 
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  certification of origin requirement (Article 3.23). The obligations of importers, exporters and 
producers – in particular as regards the accuracy of the certification of origin - are included in Articles 
3.24 and 3.25. Rules relating to confidentiality are included in Article 3.31.  
Rules relating to verifying the origin of a good are contained in Article 3.27, with additional 
rules for textiles in Article 4.6. The importing Party can conduct the verification through the following 
means:  
a. a written request for information from the importer, exporter or producer of the good, with 
a timeframe of 30 days for providing answers. In case of delay or unsatisfactory replies, 
the importing Party may deny preferential tariff treatment;  
b. a verification visit to the premises of the exporter/producer, upon a prior written request 
(in English), with a response  to be provided in writing within 30 days from its receipt. In 
the absence of a reply, or in the case of a refusal, the importing Party may deny 
preferential tariff treatment to the good subject to verification; and  
c. any other procedure mutually agreed by the Parties involved.  
Following verification, a determination shall  be made and provided in writing within 90 days 
from receipt of the information necessary to make the determination, and no later than 365 days 
from the initiation of the process. Prior to this, the importing Party shall inform its counterparts of 
its resu lts and if it intends to deny preferential treatment, and give them at least 30 days to provide 
additional information. The reasons for a determination denying preferential treatment are that the 
good does not qualify for preferential treatment; lack of su fficient information; absence of response 
to a written request for information or of written consent for a verification visit; or failure to comply 
with the requirements of Chapter 3 (Article 3.28).  
Numerous provisions deal with information -sharing with im porters, producers, exporters and 
the exporting Party in the context of verification. Provisions related to refunds and claims for 
preferential tariff treatment after importation are also included. A Party may apply appropriate 
penalties for violations of its legislation and regulations related to the provisions of Chapter 3.  
Textiles and apparel -specific verification procedures - relating to the qualification for 
preferential tariff treatment or the existence of customs offences - are included in Article 4 .6. Beyond 
confirming that an importing Party may conduct a verification thorough an on -site visit of an 
exporter's/ producer's premises, the Article provides detailed disciplines on the information that can 
be required, notification and other transparency  requirements, timeframes and other aspects of the 
verification process. In addition to the reasons specified in paragraph 3.110.    above , a 
determination denying preferential treatment for textiles and apparel goods may occur if, pursuant 
to verification, the importing Party has not received sufficient information to determine that the good 
qualifies as originating, or has been denied access/p ermission for the visit, or has not been granted 
access to the relevant records or facilities during such a visit (Article 4.7).  
3.4.5.2   Customs administration and trade facilitation  
Chapter 5 has disciplines on customs administration and cooperation as well as tr ade 
facilitation. The provisions of the WTO Customs Valuation Agreement are reaffirmed. The Parties are 
to ensure that their customs procedures are applied in a predictable, consistent and transparent 
manner (Article 5.1).  
The Chapter emphasizes the import ance of customs cooperation regarding significant 
customs issues that affect goods trade between the Parties in order to facilitate the effective 
operation of the Agreement and for investigations and prevention of customs offences. A series of 
provisions – of a best endeavour nature – refer to cooperation when a Party has "a reasonable 
suspicion of unlawful activities", in accordance with the definition provided in paragraph 6 of 
Article  5.2. In such cases, Parties may, in particular, request confidential i nformation normally 
collected in connection with the importation of goods.  
Article 4.4 provides disciplines on textiles and apparel -specific cooperation procedures. In 
particular they require the Parties to cooperate on the enforcement of disciplines on cu stoms WT/REG395/1  
 
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  offences, including ensuring the accuracy of claims for preferential tariff treatment. They are also 
required to designate a contact point to deal specifically with cooperation under the textiles Chapter.  
Also included in Chapter 5 are provisions to provide advice or information, upon request, on 
TRQs, application of duty drawback, deferral or other types of relief that reduce, refund or waive 
customs duties; eligibility requirements for goods re -entered after repair and alteration; or country 
of orig in marking.  
The Chapter also includes numerous trade facilitation provisions, going beyond those of the 
WTO Agreement on Trade Facilitation in some instances , including:  
a. the obligation to issue written advance rulings " as expeditiously as possible and  in no case 
later than 150 days " after the receipt of the written request for: (i) tariff classification; (ii) 
application of customs valuation criteria; (iii) determination of origin; (iv) other matters 
the Parties may decide (Article 5.3). Modalities are esta blished for the issuance of such 
rulings;  
b. an obligation to use  automatic/electronic means to expedite the release of goods on the 
basis of international regulations (Article 5.6);  
c. the release of goods within 48 hours from arrival whenever possible (Articl e 5.10) at the 
entry -point and prior to determination/payment of duties and charges (proof of a security 
guarantee may however be requested);  
d. obligation to adopt or maintain a risk management system for assessment and targeting 
to focus inspection activiti es for high -risk goods and to simplify clearance of low -risk goods 
(Article 5.9);  
e. publication of customs legislation and the existence of enquiry points. The confidential 
nature of information clearly identified as such shall be preserved (Articles 5.11 an d 5.12);  
The Chapter requires the Parties to ensure that any person that is the recipient of a customs 
determination is provided access to both administrative and judicial reviews of the determination 
(Article 5.5). Finally, it also requires them to maint ain measures allowing for the imposition of 
penalties for a breach of customs laws, regulations or procedural requirements, accompanied by 
operational modalities (Article 5.8).  
3.5  Sector -specific provisions on trade in goods  
3.5.1   Agriculture  
Section C of Chapter 2  is devoted to disciplines in the agricultural sector. In addition to 
prohibitions on export subsidies and special safeguards for Japan (see Sections 3.4.4  and 
3.4.2.3.1    above ), these include:  
a. a new set of transparency disciplines regarding export restrictions for food security 
consistent with Article 12.1 of the WTO Agreement on Agriculture (Article 2.24); and  
b. transparency disciplines for trade in products of modern biotechnology (Article 2.27), in 
particular by establishing an information -sharing system on inadvertent "low level 
presence", within a shipment, of genet ically-modified goods that is authorized for use in 
at least one country, but not in the importing country, which, if authorised for food use, 
have undergone a Codex -compliant food safety assessment. The Parties' rights under the 
WTO Agreements are reaffir med. 
The Parties also agree to work jointly in the WTO towards the development of disciplines on 
the provision of export credits, export credit guarantees and insurance programmes and on 
agricultural export State trading enterprises (Articles 2.22 and 2.23 ). 
A Committee on Agricultural Trade is established (Article 2.25); its functions include 
inter alia promoting trade in agricultural goods among the Parties and monitoring the WT/REG395/1  
 
- 40 - 
 
  implementation of the disciplines under the Section. The Committee shall meet an nually during the 
first five years and as necessary afterwards; accordingly, meetings were held in October 2019 and 
July 2020.  
3.5.2   Textiles and apparel  
Chapter 4 on "Textile and Apparel Goods" mostly adapts the Agreement's rules of general 
application and provides sector -specific disciplines on  rules of origin, safeguards, customs 
cooperation and enforcement, and verification. These modifications have been presented in relevant 
Sections of this Factual Presentation (see paragraphs 3.41.  , 3.92.  and 3.115.   above)  
The Parties are required to establish monitoring programmes or practices to identify /address 
textiles and apparel customs offences (Article 4.5), including the accuracy of claims for preferential 
tariff treatment. These can include collecting/sharing information on textiles or apparel goods for 
use for risk management purposes. The existe nce of bilateral monitoring mechanisms is also 
recognized.  
A side letter between Mexico and Viet Nam establishes a monitoring mechanism for 
registered textiles and apparel enterprises in Viet Nam. The mechanism, which encompasses 
information sharing and m onitoring of production in and exports from Viet Nam, aims at supporting 
risk management in identifying and addressing customs offences related to the textiles sector.  
A Committee on Textile and Apparel Trade Matters is established in Article 4.8, and is 
responsible for considering any matter arising under the Chapter. The Committee is to meet during 
the first year of the Agreement's entry into force and thereafter as agreed by the Parties or requested 
by the Agreement's Commission. The first meeting of th e Committee was held in July 2020 ; issues 
related to implementation and rules of procedure  were discussed . 
3.5.3   Motor vehicles  
The Agreement contains numerous disciplines that are specific to motor vehicles, 
disseminated in its chapters, annexes and appendixes , as well as in bilateral side letters.  
Chart 3.4 presents the final stage of liberalization for new automotive goods under HS 
headings 8702 -8705. Of al l the Parties, only imports by Mexico of new t ransport passenger vehicles, 
trucks and special vehicles (HS 8702, 8704 and 8705 respectively) from Japan will remain dutiable 
at the end of the implementation period.43 Mexico is also the only Party that appli es a different tariff 
elimination schedule - or "tariff differential" – to imports from Japan.  
Australia, Mexico and Viet Nam have different liberalization schedules for used goods, which 
remain subject to duties at the end of implementation. In the case o f Viet Nam, TRQs also apply.  
Chart 3.4 Liberalization of imports of new automotive goods  
HS Imports into  Duty -free in   
2018   2021  2022   2028   2030  Remain  
dutiable  
8702 
8704  AUS-JPN-MEXa (except from Japan)  
-NZL-SGP           
CAN           
MEX (from JPN)            
VNMa           
8703  AUS-JPN-MEXa-NZL-SGP           
CAN           
VNMa           
8705  AUS-JPN-MEXa (except from Japan)  
-NZL-SGP           
 
43 The last reduction of tariffs will take place in 2027 (2028 for Viet Nam). Thereafter, a preferential 
tariff of either 1.25% - 3.75% or 7.5% will apply depending on the good.  WT/REG395/1  
 
- 41 - 
 
  HS Imports into  Duty -free in   
2018   2021  2022   2028   2030  Remain  
dutiable  
CAN           
MEX (from JPN)            
VNMa           
a One year later for trade between Mexico and Viet Nam.  
Source:  WTO Secretariat based on data provided by the Parties.  
 
Motor vehicle trade between Canada and Japan44 classified under HS 87.03 and, whenever 
specified, an "originating motor vehicle" in accord ance to the rules of origin of Chapter 3, is subject 
to the following provisions:  
a. an MFN clause is incorporated in a bilateral side letter (of March 2018) on standards in 
relation to "any technical regulations, standards or conformity assessment procedures  
related to motor vehicle safety and emissions adopted or applied by Japan" vis-à-vis any 
third country.45  
b. transitional safeguards on the covered goods (Article 3) can be applied under less stringent 
conditions than those of the general transitional safeguards; see Section 
3.4.2.3.4    above ;  
c. dispute settlement (Article 4): a special, accelerated dispute settlement mechanism is 
established; see Section 5.6; and  
d. establishment of a bilateral Committee on Motor Vehicles composed of representatives of 
Canada and Japan. Its tasks include monitoring the implementation of the Parties' 
obligations with respect to motor vehicles, organizing consultations on issues affecting 
bilateral trade and investment, and facilitating increased cooperation with respect to 
emerging issues on e.g. manufacture, importation,  sale and operation of motor vehicles 
using alternative fuels, as well as issues concerning other markets. It shall meet at 
mutually agreed times. As of February 2021, the Committee had not yet met.  
Attached to the March 2018 side letter is a fact sheet o n automotive technical regulations 
and standards that  specifies how these would apply to imports by Japan of Canadian motor vehicles. 
It provides disciplines for the application of Japanese standards, as well as its Preferential Handling 
Procedure (PHP) Ce rtification and Requirements and Financial Incentives, to originating Canadian 
motor vehicles. Also foreseen is that the Parties will encourage and promote greater international 
harmonization of technical requirements for motor vehicles through multilatera l fora and that an 
enforceable dispute settlement will be developed. All these disciplines were further elaborated in a 
subsequent side letter46 (November 2018). The letter also clarifies that a complaining Party may 
request that any such proceeding be conducted either under the timeframes set out in Chapter 28 
or the accelerated timeframes for dispute settlement (referred to in paragraph 3.129.   c above  and 
in Section 5.6).  
Other specificities of trade in motor vehic les - import and export restrictions, TRQs and rules 
of origin - were presented in the relevant Sections of this Factual Presentation.  
 
44 There are two App endixes: Canada, Appendix D to Annex 2 -D; Japan, Appendix D -2 to Annex 2 -D. 
Prior to the withdrawal of the United States from the TPP, bilateral Appendices also existed between the US 
and Japan, covering goods under HS 87.03 and 87.04.  
45 While the MFN clau se is also incorporated in the motor vehicle Appendix, the  withdrawal of the United 
States from the TPP resulted in its non-operationalization, as it aimed at extending to Canada the preferential 
treatment provided by Japan to the United States and which w as incorporated in the Japan/United States TPP 
Appendixes on motor vehicle s. Side letters were later  signed between Japan and Canada to resolve the issue.   
46 Both the March and November 2018 side letters also reaffirm national treatment under Articles 2.1 
and 5.1.1 of the WTO TBT Agreement, with respect to technical regulations, standards, or conformity 
assessment procedures related to motor vehicle safety and emissions adopted or applied by either Party.  WT/REG395/1  
 
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  4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
Trade in services is covered in Chapters 9, 10, 11, 12, 13 and 14 which de al respectively with 
investment, cross -border trade in services, financial services, temporary entry for businesspersons, 
telecommunications, and electronic commerce.47 These chapters are complemented by the Parties' 
lists of reservations in Annexes I, II,  and III. Annexes I and II contain reservations for existing and 
futures measures for all sectors, except financial services which are listed in Annex III. In addition, 
side letters clarifying specific issues have been attached to the Agreement (see Annex 1). For 
instance , Canada has side letters  with all Parties on the definition of "cultural industries".  
Like for trade in goods, the Agreement is not the first agreement between the Parties that 
covers services (see Table 1.1). Prior to the Agreement, all P arties except Canada and Mexico, 
already had an agreement with each other covering trade in services. Mexico has an agreement with 
Japan and Canada, and for Canada, its agreement with Mexico is the only one on trade in services 
with another Party.48 
4.1  Scope and definitions  
Chapter 10 applies to measures by a Party affecting cross -border trade in services (CBTS) by 
service suppliers of another Party (Article 10.2). CBTS , as defined in Chapter 10, covers GATS modes 
of supply 1, 2  and 4 (Article 10.1).49 Mode 3 is treated in Chapter  9, which applies to measures by 
a Party relating to investors of another Party, covered investment50, and all investments in the 
Party's territory with respect to performance requirements and environmental, health and other 
regulatory objectives (Article 9.2).  
Chapter 10 does not apply to: (a) financial services with some exceptions51 (Chapter 11); (b) 
Government procurement (Chapter 15); (c) services supplied in the exercise of Governmental 
authority; (d) subsidies or grants by a Party, including Government -supported loans, guarantees 
and insurance; and (e) air services52 with some exceptions (Article 10.2).  Compared to the GATS, 
the Agreement has  broader coverage  in air transport services as it covers specialty air services, 
airport operation services and ground handling services  in addition to aircraft repair and maintenance 
services (while the aircraft is out of service), selling and marketing of air transport services, and 
computer reservation system services  (defined in Ar ticle 10.1).53 As for Government procurement, 
it is not excluded from the GATS (Article  XIII), but exempted from the application of market access, 
MFN and national treatment provisions.  
Chapter 10 does not impose any obligation on a Party with respect to a  national of another 
Party who seeks access to its employment market or who is employed on a permanent basis in its 
territory.  
 
 
 
47 Chapter 9 includes inter alia  Annexes  9-F, 9-G, 9-J, 9-K, and 9 -L for which there is no specific 
reference in the main text. In this regard, the Parties clarified that the fact that there are no direct references 
to these Annexes in the main text does not affect the operability of such Annexe s, which are integral part of 
Chapter 9 pursuant to Article 30.1. The Parties further indicated that Annex 9-F is operable but not in force 
until Chile becomes a Party to the Agreement; Annex 9 -G is in force; Annex 9 -J is in force for Mexico and Viet 
Nam, and operable but not in force for Chile or Peru as they are yet to become Parties; Annex 9 -K is operable 
but not in force until Malaysia becomes Party to the Agreement; and Annex 9 -L is suspended.  
48 Prior to the Agreement, Canada had trade in services agreements also with Peru, and Chile, which are 
also signatories to CPTPP, but for which the Agreement is not in force yet.  
49 Mode 4 is defined in Chapter 10 as the supply of CBTS by a national of a Party in the territory of 
another Party in the A greement, where a national is a permanent resident of a Party or a "natural person who 
has the nationality of a Party" (Article 1.3). The latter is further defined in Annex 1 -A by each Party.  
50 The Agreement defines a Party's covered investment as an inves tment in its territory of an investor of 
another Party existing  on the date of entry into force of the Agreement, as well as investments established, 
acquired or expanded subsequently (Article 9.1).  
51 The Parties' commitments on market access (Article 10.5 ), domestic regulation (Article 10.8), and 
transparency (Article 10.11) described in Chapter 10 shall apply if the financial service is supplied by a covered 
investment that is not a covered investment in the financial institution in the Party's territory.   
52 The Parties indicate that air services include domestic and international, schedule and non -schedule 
air transport services, as well as related services supporting air services.  
53 Additional provisions applicable to air services are found in Article 10 .2.6-10.2.8.  WT/REG395/1  
 
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Chapter 9 does not apply to measures on financial services  covered by Chapter 11 , with some 
exceptions . The investment obligations of national and MFN treatment and senior management and 
boards of directors do not apply to Government procurement or subsidies or grants provided by a 
Party, including Government -supported loans, guarantees and insurance (Articl e 9.12). In case of 
any inconsistency between this Chapter and another Chapter, the other Chapter will prevail to the 
extent of the inconsistency (Article 9.3).  
Chapter 11 applies to (a) financial institutions of another Party; (b)  investors of another Par ty 
and their investments in financial institutions in the Party's territory; and ( c) cross -border trade in 
financial services ( see Section 4.7.1).54 
Chapter 12 applies to measures affecting the temporary entry of businesspersons of a Party 
into the territo ry of another Party. It does not apply to measures affecting natural persons seeking 
access to the labour market of another Party and to measures regarding citizenship, nationality, 
residence, or employment on a permanent basis (Article  12.2) (see Section 4.4.6).  
Chapter 13 on telecommunications applies to measures relating to (a) access to and use of 
public telecommunications services (b) obligations regarding its suppliers ; and (c) any other 
measures  relating to telecommunications services  (Article 13.2).  The Chapter does not apply to 
measures relating to broadcast or cable distribution of radio and television programming , except 
when relating to the access to and use of public telecommunications services and transparency in 
regard to technical measures to  the extent they also affect public telecommunications services  (see 
Section 4.7.9 ). 
4.2  Denial of benefits  
A Party can deny the benefits of Chapters 9 and 10 if the service supplier or investor (or its 
investments) of another Party is a n enterprise  owned or controlled by persons of a non -party or the 
denying Party, and has no substantial business activities in the territory of any Party other than the 
denying Party (Articles  9.15 and 10.10).55  
An anti -circumvention clause is also part of the denial of benefits provision on CBTS and 
investment. Under the clause, a Party can also deny the benefits of Chapters 9 and 10 if the 
enterprise is owned or controlled by a person  of a non -party, and the den ying Party adopts or 
maintains measures with respect to the non -party or person of that non -party that prohibit 
transactions with that enterprise or would be violated or circumvented if the benefits of the Chapters 
were accorded to the enterprise .  
4.3  General  provisions on trade in services  
4.3.1   Market access  
Article 10.5 lists the limitations on market access that the Parties cannot adopt or maintain 
unless otherwise specified in their list s of reservations (Article 10.5). These mirror those found in 
GATS Article XVI.2 (a) -(e).56  
These same commitments apply to measures adopted or maintained by a Party affecting the 
supply of a service in its territory by a covered investment (Article 10.2), and to measures with 
respect to financial institutions of another Party and investors of another Pa rty seeking to establish 
a financial institution (Article  11.5).  
 
 
54 Cross -border trade in (or cross -border supply of) financial services, as defined in the Agreement, 
covers modes 1, 2 and 4 but excludes the supply of a financial service in the territory of a Party by an 
investment in that territory (Article  11.1).  
55 The Agreement does not contain a definition for "substantial business activities".  
56 Under the Agreement, like under the GATS, the Parties cannot apply measures that limit: (i) the 
number of service suppliers, (ii) the total value of service tran sactions or assets, (iii) the total number of 
service operations or the total quantity of services output, (iv) the total number of natural persons that can be 
employed in a particular service sector, or that a service supplier can employ; or (v) that rest rict or require 
specific types of legal entities or joint ventures to supply a service.  WT/REG395/1  
 
- 44 - 
 
  4.3.2   National and MFN  treatment  
The Parties agree to grant MFN and national treatment to:  
a. services and service providers of other Parties (Articles 10.3 and 10.4); and  
b. investors and covered investments of other Parties with respect to the establishment, 
acquisition, expansion, management, conduct, operation, and sale or other disposition of 
investments (Articles 9.4 and 9.5).57  
For financial services (Chapter 11 ), MFN an d national treatment is granted to investors  and 
financial institutions  of another Party , investments by investors of another Party in financial 
institutions, and cross -border suppliers of financial services of another Party (Articles 11.3 and 
11.4).58  
Exemptions from these commitments are specified in the Parties' list s of reservations  
(Annexes I, II and III) . Moreover, these commitments do not apply to  certain measures related to 
intellectual property (Articles 3 and 4 of the TRIPS Agreement and 18.8 of the Agreement) 
(Article  9.12) . MFN treatment is not extend ed to mechanisms or procedures for the resolution of 
investor -State disputes (Articles 9.5 and 11.4).  
4.3.3   Commercial  presence  
Unless listed in their reservations,  a Party cannot require a services supplier of another Party 
covered under Chapter 10 to establish or maintain a representative office or any form of enterprise, 
or to be resident in its territory as a conditio n for the cross -border supply of a service (Article 10.6).  
4.3.4   Performance requirements  
The Agreement prohibits the application of performance requirements with respect to the 
establishment, acquisition, expansion, management, conduct, operation or sale or oth er disposition 
of an investment covered under Chapter 9. Detailed provisions and applicable exceptions are found 
in Article 9.10.  
4.3.5   Senior Management and Boards of Directors  
The Parties cannot impose nationality requirements for senior management positions o f a 
company that is a covered investment, but can require that a majority of its board of directors, or 
any committee thereof,  be of a particular nationality, or resident in the territory of the Party, 
provided that the requirement does not materially impair the ability of the investor to exercise 
control over its investment  (Article 9.11).  
4.3.6   Movement of natural persons  
Chapter 12 applies to measures affecting the temporary entry of businesspersons of a Party 
into the territory of another Party, and describes the conditions for such temporary entry . It does 
not apply to measures affecting natural persons seeking access to the employ ment market of a 
Party, nor to measures regarding citizenship, nationality, residence, or employment on a permanent 
basis (Article  12.2). The Agreement defines a business person of a Party a s a natural person who is 
a national , or a permanent resident , of a Party, where that Party has , prior to the Agreement' s entry 
into force , notified the WTO Secretariat that it accords substantially the same treatment to its 
permanent residents and its nationals in accordance with GATS  article XXVIII (Articles 1.3 and 
 
57 The Agreement specifies that whether national and MFN treatment is accorded in "like circumstances" 
depends on the totality of the circumstances, including whether th e relevant treatment distinguishes between 
services or service suppliers on the basis of legitimate public welfare objectives.  In this regard, t he Parties 
have signed side letter s on the interpretation of "in like circumstances" under Article 9 .4 (National  Treatment) 
and Article 9.5 (MFN Treatment) and list jurisprudence on this phrase from NAFTA tribunals.  
58 For financial institutions, investors, and their investments in financial institutions , the obligation of 
national treatment applies with  respect to t he establishment, acquisition, expansion, management, conduct, 
operation and sale or other operations involving investments in the Parties' territory . WT/REG395/1  
 
- 45 - 
 
  12.1) ).59 Australia, New Zealand and Canada have made such notification s, so their business persons 
can be either  nationals or permanent residents, while Singapore, Vietnam, Japan and Mexico  have 
not, and so for them, business pe rsons of a Party comprises only its nationals .60  
The Parties set out their commitments on the temporary entry of business persons in 
Annex  12-A, which are country specific . In each annex, the corresponding Party lists the categories 
of business persons fo r which  it is making commitments, as well as the associated conditions, 
limitations or other commitments for each category, including the length of stay , economic needs 
testing requirements, and entry and work rights for spouses.  For instance, Canada provides a 
guaranteed work permit and waiver from labour market tests and grants entry for covered 
professionals and technicians from Australia, Japan, and Mexico based on detailed lists of 
occupations.  
Conditional on compliance with their eligibility requ irements and completion of the relevant 
immigration formalities as set out in Annex 12 -A, the Parties commit to authorize the temporary 
entry or extension of temporary stay of all or some of the following categories of business persons: 
(a) business visito rs or related categories, (b) installers and services, (c) intra -corporate transferees, 
(d) independent executives or related categories, and (e) contractual services suppliers or related 
categories, to the extent provided for each category by each Party i n Annex 12 -A. Japan and 
Singapore apply their commitments to all Parties, while Australia, Canada, Mexico, New Zealand, 
and Viet Nam apply them based on reciprocity. The Parties reserve the right to refuse entry to a 
business person of another Party if the  temporary entry of that person might affect adversely the 
settlement of any labour dispute in progress, or the employment of any natural person involved in 
such a dispute (Article 12.4). Table  4.1 provides an overview of the Parties' commitments under the  
Agreement, and how they relate to their GATS commitments. The comparison is based solely on 
length of stay and categories committed of services providers. It does not take into account 
commitments made (if any) with respect to the entry of spouses and/or dependents of 
businesspersons (See Table 4.2).  
Table 4.1 Overview of commitments for Mode 4 under the Agreement and the GATS  
Reciprocity required  Yes No 
Commitments  
Australia  
New Zealand  
Viet Nam  
Canada  
Mexico  
Singapore  
Japan  
A. Business visitors or related categories1  + = + + + + + 
B. Installers and servicers2 + = = + + = = 
C. Intra -corporate transferees  +  + +  +  ≈ < + 
D. Investors, independent executives or related categories3  = = + +  +  + + 
E. Contractual services suppliers or related categories4 +  + +  + +  = + 
 there are commitments under the Agreement .  no commitments.  
+: commitments under the Agreement are broader than under the GATS . 
=: commitments under the Agreement and the GATS are the same.  
≈: commitments under the Agreement and the GATS are similar.  
<: commitments under the GATS are broader than under the Agreement.  
 
59 For further clarity, Singapore indicates in Annex 12 -A that n otwithstanding the definition of 
"business person " in Article 12.1 its commitments do not extend to the permanent residents of another Party.  
60 The notification s under GATS Article XXVIII(k) by Australia, Canada, and New Zealand can be found 
in WTO documents S/C/N/3  of 15 February 1995 , S/C/N/1  of 23 January 1995  and S/C/N/2  of 23 January 
1995, respectively.    WT/REG395/1  
 
- 46 - 
 
  Note:  
1 Commitments  with respect to  category A refer to  (a) business  visitors,  (b) short -term business visitors, or (c) 
services salespersons.  
2 Canada indicated that its commitments on after-sale or after -lease services fall in this category. For 
consistency, when commitments on after-sale or after -lease services, or related activities (e.g. installation, 
maintenance or repair) were made by other Parties (i.e. Mexico), they were also classified under "installers and 
servicers".  
3 Commitments  with respect to  category D refer to  (a) independent  executives, (b) other personnel, or (c)  
persons re sponsible for setting up a commercial presence.  
4 Commitments  with respect to  category E refer to (a) contractual services  suppliers, (b) independent 
professionals, (c) professionals, (d) professionals and technicians, or (e)  professionals and technician -
professionals.  
Source:  WTO Secretariat, based on Annex 12 -A. 
 
Compare d to the GATS, commitments in mode 4 are in general broader under the Agreement 
as most Parties provide for the temporary entry of additional categories of businesspersons under 
the Agreem ent and/or have extended their length of stay. For example, Canada allows business 
visitors to stay for up to six months (renewable) under the Agreement, instead of 90 days under  the 
GATS. Some Parties, like Australia, Japan and Singapore, have also  extend ed their commitments to 
investors, installers and services, business visitors , and/or contractual service suppliers , which are 
absent from their GATS commitments. Moreover,  all Parties, except for Singapore and New Zealand 
have made commitments with respect to spouses and/or dependents of certain categories of 
businesspeople such as intra -corporate transferees, and grant ed them the right of temporary entry, 
and work. Table 4. 2 presents the Parties' commitments under the Agreement in detail.  
Table 4.2 Comparison of Categories and Length of Stay for Temporary Entry of 
businesspersons in CPTPP and the GATS  
Category  Maximum length of Stay  Commitments 
for spouses 
and/or 
dependents 
under the 
CPTPP  CPTPP GATS  
Australia     
A. Business visitors  
▪ businesspersons  
▪ service sellers   
3 months  
Between 6 to 12 months   
No commitments  
Between 6 to 12 
months  No 
B. Installers and servicers  3 months  No commitments  No 
C. Intra-corporate transferees:  
▪ executives and senior managers  
▪ specialistsa  
4 years, extendable  
2 years, extendable   
4 years  
Not defined  Yes 
D. Independent Executives  2 years  2 years  Yes 
E. Contractual Service Suppliers  12 months, extendable  No commitments  Yes 
F. Specialists (other than those under 
category C)  No commitments  2 years, extendable 
for a maximum of 2 
more years.  No 
Canada     
A. Business Visitors  6 months, extendable  90 days  No 
B. Installers and servicers  6 months, extendable  No commitments  No 
C. Intra -Corporate Transferees  3 years, extendable  3 years  Yes 
D. Investors  1 year, extendable  No commitments  Yes 
E. Professionals and technicians  1 year, extendable  90 days in any 12 -
month period  Yes 
Japan (not based on reciprocity)     
A. Short -term business visitors  90 days, extendable  90 days  No 
B. Installers and servicers  No commitments  No commitments  No 
C. Intra -corporate transferees  5 years, extendable  5 years  Yes 
D. Investors  5 years, extendable  No commitments  Yes 
E. Qualified professionals  5 years, extendable  5 years  Yes 
F. Independen t professionals  5 years, extendable  No commitments  Yes 
G. Contractual service suppliersb 5 years, extendable  No commitments  Yes WT/REG395/1  
 
- 47 - 
 
  Category  Maximum length of Stay  Commitments 
for spouses 
and/or 
dependents 
under the 
CPTPP  CPTPP GATS  
Mexico     
A. Business visitors  180 days  90 days  No 
B. Installers and servicers  180 days  No commitments  No 
C. Intra -corporate transferees  1 year, extendable 3 
times for an equal 
period of time  1 year, renewable  Yes 
D. Investors  1 year, extendable 3 
times for an equal 
period of time  No commitments  Yes 
E. Contractual service supplier  
▪ professionals and technician  
▪ Contractual service supplier   
1 year, extendable 3 
times for an equal 
period of time   
No commitments  
No commitments  Yes 
New Zealand     
A. Business visitors  3 months in a calendar 
year 3 months in a 
calendar year  No 
B. Installers and servicers  3 months in any 12 -
month period  3 months in any 12 -
month period  No 
C. Intra -corporate transferees  3 years  3 years for executives 
and senior managers; 
12 months for 
specialists and senior 
personnel; 3 years for 
specialist personnel 
subject to labour 
market tests.  No 
D. Independent Executives  No commitments  No commitments  No 
E. Independent professionals  12 months and subject 
to economic needs 
tests.  No commitments  No 
Singapore  (not based on 
reciprocity)     
A. Business visitors  30 days  No commitments  No 
B. Installers and servicers  No commitments  No commitments  No 
C. Intra -corporate transferees  No commitments   3 years, extendable 
for a maximum of 2 
more years  No 
D. Investors  30 days  No commitments  No 
E. Contractual service suppliers  No commitments  No commitments  No 
Viet Nam     
A. Service salespersons  6 months  90 days  No 
B. Installers and servicers  No commitments  No commitments  No 
C. Intra -corporate transferees  3 years, extendable  3 years, extendable  Yes 
D. Independent executives  
▪ Persons responsible for setting  
up commercial presence  
▪ Other personnel   
1 year  
 
3 years, extendable   
90 days 
 
3 years, extendable  Yes 
E. Contractual service suppliers  6 months, extendable  90 days  Yes 
a Australia indicated that its commitments on Specialists under its GATS' schedule are not strictly 
limited to intra-corporate transferees . See category F.  
b Japan indicated that Qualified Professionals, Independent Professionals and Contractual service s 
suppliers  are three distinct cat egories of businesspersons, and that Qualified Professionals, and 
Independent Professionals are not subcategories of Contractual service s suppliers . 
Source:  Annex 12 -A of the Agreement and the Parties' GATS schedules.  
 
The Parties agree to make decisions o n completed applications as expeditiously as possible 
and to ensure that fees charged by the authorities for the processing of applications are reasonable 
in that they do not unduly impair or delay trade or investment (Article 12.3). They also affirm their  
APEC commitments to each other to enhance the mobility of businesspersons, including through 
exploration and voluntary development of trusted traveller programmes, and their support for efforts WT/REG395/1  
 
- 48 - 
 
  to enhance the APEC Business Travel Card programme (Article 1 2.5). The Parties agree to make 
information publicly available on current requirements for temporary entry, to indicate the typical 
timeframe within which an application for an immigration formality is processed and establish 
mechanisms to respond to enqui ries regarding temporary entry under the Agreement (Article  12.6).  
A Committee on Temporary Entry for Businesspersons is established to carry out a number 
of cooperation activities (Articles 12.7 and 12.8). It shall meet once every three years unless 
other wise agreed. The Parties cannot have recourse to the dispute settlement mechanism under the 
Agreement in the case of a refusal to grant temporary entry unless it involves a pattern of practice 
and the business persons affected have exhausted all available administrative remedies regarding 
the matter (Article 12.10 ). As at March 2021, the Committee had not met.   
Compared to existing bilateral or plurilateral agreements among the Parties, businesspersons 
benefit in some cases from enhanced conditions in other  Parties' markets under the Agreement 
through longer periods of stay, a broader range of permitted service suppliers and waivers from 
labour market testing and work permits.61 
4.4  Liberalization commitments  
Commitments on cross -border trade in services (Chapte r 10) and investment (Chapter 9) are 
scheduled on a negative list basis so that obligations o n (a) national treatment, (b) MFN  treatment , 
(c) market access  (Chapter 10 only) , (d) local presence  (Chapter 10 only) , (e) performance 
requirements (Chapter 9 onl y) and (f) senior management and boards of directors  (Chapter 9 only)  
apply to all services, unless specified otherwise in the Parties' existing and future non -conforming 
measures listed in Annexes I and II, respectively. Commitments in financial services (Chapter 11) 
for mode 3 also us e a negative list while for modes 1 -2 the Parties apply a hybrid approach, using 
both negative and positive lists to schedule  commitments (Annex 11 -A and Annex III). Annex III 
lists the Parties' reservations for financial services on existing  (Section A)  and future  (Section B)  
measures with re spect to (a) national treatment, (b) MFN, (c) market access, (d) cross -border trade 
and (e) senior management and board of directors. Reservations on national and MFN treatment, 
and senior management and boards of directors in Annexes I and II also apply t o financial services, 
to the extent that the measure or activity in the reservation is covered by Chapter 11 (Article 11.10). 
The measures in Annex I apply to central, regional and local levels of government.  
For existing non -conforming measures listed in Annex I  and Section A of Annex III , a standstill 
and a ratchet mechanism apply. Under the standstill  mechanism , the Parties can maintain 
non-conforming measures that existed when the Agreement was signed, and which are listed in the 
Annex , but cannot incre ase their restrictiveness. Under the ratchet mechanism, any amendments 
that decrease the restrictiveness of a non -conforming measure, as it existed immediately before the 
amendment, are automatically incorporated into the Agreement. Viet Nam is allowed to not apply 
the ratchet mechanism for a period of three years from the date the Agreement entered into force. 
During this transition period (until January 2022) Viet Nam can roll -back to the situation existing 
when it entered the Agreement (Annexes 9 -I, 10-C and 11 -C) so that any amendment decreasing 
the restrictiveness of a measure affecting cross -border trade or investment does not need to be 
permanent except when a service supplier has already taken business related actions in that Party, 
for instance appl ying for permits or licences. Viet Nam shall notify to the other Parties any 
amendment that increases the restrictiveness of a non -conforming measure, as it existed 
immediately before the amendment at least 90 days before making the change. In this regard,  Viet 
Nam indicated that it has not used so far the roll -back mechanism.  
In addition, five Parties - Australia, Canada, Mexico, New Zealand and Viet Nam – have listed 
separately (as a reservation or Appendix)  in Annex II market access improvements  to their  existing 
GATS schedules . At the same time they reserve the right to adopt or maintain any measure 
consistent with the obligations under GATS Article XVI, and so no more restrictive than the se 
 
61 For example, see https://dfat.gov.au/trade/agreements/in -force/cptpp/outcomes -
documents/Pages/cptpp -temporary -entry-of-business -persons.aspx  and https://international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/cptpp -ptpgp/sectors -secteurs/temporary_e ntry-
sejours_temporaires.aspx?lang=eng . WT/REG395/1  
 
- 49 - 
 
  improvements. Such improvements provide therefore a new and low er "floor" among the Parties in 
terms of restrictiveness.62  
4.4.1   Overview  
Under the CPTPP, the Parties have made commitments – full or partial – in between 46 (Japan ) 
and 54 (Singapore) subsectors out of the 55 identified in the WTO Services Sector al Classific ation 
(Chart 4.1).63 The excluded subsectors  involve primarily health  related and social services. No Party 
made commitments in social services; and in health -related services only Singapore and Viet Nam 
made some commitments. Other subsectors in which no commitments were taken are postal 
services (no commitments by Japan and Mexico), primary education (A ustralia, Viet Nam, and 
Japan), secondary education services (Japan), audiovisual (Canada), tourist guide services  
(Viet Nam) , pipeline transport services (Viet Nam), and space transport services (Japan and 
Vietnam) (Table 4.3).  
The degree of liberalizatio n by sector varies across countries with some Parties like New 
Zealand making full commitments in about half of the subsectors (2 8 subsectors), while others like 
Singapore made full commitments in a bit more than a third ( 17 subsectors).64 On average, each  
party made full commitments in 17 subsectors and partial commitments in another 32. Most Parties 
made full commitments in construction and related engineering services, most business services 
(except for professional and other business services), and tour ism and travel related services.  
Chart 4.1 Number of subsectors by level of commitments under the Agreement  
 
Source:  WTO Secretariat based on Annexes I and II of the Agreement.  
 
 
62 The Parties clarified that the improvements in their commitments on market access under the CPTPP 
are not multilateral improvements , and apply  only to the Parties of the Agreement.  
63 The analysis in this Factual P resentation follows the WTO Services Sectoral Classification list (WTO 
document MTN.GNS/W/120), which is based on the UN Central Product Classification (CPC). The list comprises 
11 sectors and 55 subsectors. In addition to these 11 sectors, the classificat ion includes a twelfth category 
named "Other services not included elsewhere", which for the purpose of this exercise is not considered.  
64 The assessment on the level of commitments is at the sectoral level and thus based on the Parties' 
sector -specific re servations only. Such commitments must therefore be read together with any MFN and 
horizontal reservations listed by the Parties under the Agreement to have the overall degree of liberalization in 
a given subsector.   
1917
22428
9242737
482623
4026915 5 46 5
0102030405060
Japan Singapore Vietnam Australia New Zealand Canada Mexiconone
partial
full
Asia Americas Pacific WT/REG395/1  
 
- 50 - 
 
  
The Parties that took partial commitments in a subsector did so with one or  more reservations, 
which can include different types of requirements, and limitations; or even exclude parts of the 
subsector from any commitment (see Table 4.3). The total number of reservations listed by each 
Party under the Agreement ranged from betwee n 37 (Australia) and 93 (Viet Nam), counting 
together those referring to existing and future measures (see Charter 4.2). While their number does 
not necessarily reflect the overall degree of liberalization undertaken by a Party as the scope and 
restrictive ness of individual reservations can vary significantly, they can provide an indication of the 
regulatory complexity of a sector. For example, financial and transport services, which are very often 
highly regulated sectors are subject, on average, to higher  numbers of reservations under the 
Agreement.  
Some reservations are not unique to one Party and in some cases, they have been replicated, 
with some differences, by other Parties. For instance, all the Parties have a reservation for social 
services, which d iffers greatly for Singapore and Viet Nam65, but it is very similar for the other 
Parties. Under this reservation, Australia, Canada, Japan, New Zealand and Mexico can adopt or 
maintain any non -conforming measure  with respect to cross -border trade and inve stment affecting 
law enforcement and social services established for public purposes, including correctional services, 
income security or insurance, social security or insurance, social welfare, public education, health,  
and childcare . For some Parties thi s reservation also cover s public utilities, public transport and 
public housing.  All the Parties also included a similar  MFN exception for  preferential treatment 
granted under all their existing bilateral or multilateral agreements at the time of the Agreement's 
entry into force, and all agreements in force or signed thereafter involving aviation, fisheries and 
maritime matters. All Parties, except for Singapore and Japan, also adopt ed a "GATS flo or" 
commitment and reserve d the right to adopt or maintain any measure that is not inconsistent with 
their obligations under GAT S Article XVI.66 This is often coupled with a set of commitments which 
improve upon the Parties' GATS commitments and bind them at a higher level than in the GATS.  
Other reservations shared by at least two Parties include non -conforming measures affecting 
gambling and betting, tobacco products, alcoholic beverages, minority affairs, disinvestment in 
State -owned companies, customs b rokers, and water and land cabotage services. In some cases, 
these reservations seem to be region -specific.  
Chart 4.2 Existing and future non -conforming measures by country  
 
Source:  Annexes I, II and III of the Agreement.  
 
Despite the Parties' reservatio ns, sectoral commitments under the Agreement are in general 
more liberal for all the Parties compared to the GATS , with a few exceptions where commitments 
are the same or seem to be narrower. The Parties broadened their GATS commitments in between  
29 (Cana da) and 50 (Mexico), either by adding a new subsector  or by expanding the scope of existing 
 
65 Viet Nam and Singapore also included a reservation for social services, but it is drafted differently, 
and its sectoral coverage is much more limited.  
66 In the case of Australia, this reservation covers measures at the regional level of government.  
58
47 45
19
12335815 3948
18372013
0102030405060708090100
Japan Singapore Vietnam Australia New Zealand Canada Mexicofuture
existing
Asia Americas Pacific WT/REG395/1  
 
- 51 - 
 
  commitments in a subsector  (Chart 4. 3). For instance, Mexico, Singapore,  and Viet Nam added 
commitments in real estate services, which are unbound in their GATS' sc hedules; Australia, New 
Zealand and Japan did the same for courier services, and New Zealand, Singapore and Mexico for 
environmental services. In recreational, cultural and sporting services, for which only a very few 
Parties have some commitments under th e GATS, most Parties have added commitments in all the 
missing subsectors.  
The number of new subsectors added by each Party under the Agreement varies from between 
seven (Japan)  and 35 (Singapore), which reflects to a large extent the heterogeneity of sec toral 
coverage in the Parties' GATS schedules. Japan for example has commitments in 42 subsectors 
under the GATS, while for Singapore the number of scheduled subsectors totals 19.  
Chart 4.3 Number of sectors by level of commitments compared to the GATS  
 
Source:  WTO Secretariat based on Annexes I and II of the Agreement.  
 
4.4.2   Sector -specific  commitments  
Table 4. 3. summarizes the Parties' sector -specific commitments for modes 1 -3. Commitments 
for mode 4 are described in Section 4.3.4. MFN and horizontal limitations are not taken into account 
in Table 4. 3.67 The table  follows the WTO Services Sector al Classification (WTO document 
MTN.GNS/W/120), which is based on the UN Central Product Classification (CPC). This classification 
comprises 11 sectors and 55 subsectors .68  
For a detailed description of each Parties' commitments under the Agreement, please refer to 
the corresponding country Appendix .  
 
67 Except in some specific instances where an  horizontal reservation has been considered to reflect the 
comments by Canada and Viet Nam regarding the level of their commitments in a given subsector. A detailed 
description of the Parties' commitments under the Agreement is presented in the correspondi ng country 
Appendix . 
68 This classification consists of 11 sectors and one category named "Other services not included 
elsewhere", which for the purpose of this exercise is not considered in Table 4.3.  
36
1332
2320
11287
3512
16 22
18229611
1213
2633 4
0102030405060
Japan Singapore Vietnam Australia New Zealand Canada Mexiconarrower
same (or similar)
new
broader
Asia Americas Pacific WT/REG395/1  
 
- 52 - 
 
  Table 4. 3 Parties' sectoral commitments in modes 1 -3 under the Agreement  
Sectors (CPC Classification) –  
Commitments under the CPTPP  
Australia  
New Zealand  
Singapore  
Vietnam  
Japan  
Mexico  
Canada  
1. Business services  
A. Professional  Services  + + + + + + + 
B. Computer  and Related  Services  + + + = = + = 
C. Research  and Development  Services  + ∆ + + + + + 
D. Real  Estate  Services  + = ∆ ∆ + ∆ + 
E. Rental/Leasing  Services  without  Operators  + + ∆ + + + = 
F. Other  Business  Services  + + + + + + + 
2. Communication services  
A. Postal  services  ∆ ∆ ∆ ∆ = = ∆ 
B. Courier  services   ∆ ∆ + ≈ ∆ + + 
C. Telecommunication  services  + + + + + + + 
D. Audiovisual  services  ∆ + + + + + = 
E. Other  ∆ ∆ ∆ ∆ ∆ ∆ ∆ 
3. Construction and related engineering services  
A. General  construction  work for buildings  + + = + + + = 
B. General  construction  work for civil engineering  + + = + + + + 
C. Installation  and assembly  work  + + = = + ∆ = 
D. Building  completion  and finishing  work  + + = = + + = 
E. Other  ∆ + = = + + = 
4. Distribution services   
A. Commission  agents'  services  + + ∆ + + ∆ = 
B. Wholesale  trade services  + + ∆ + + + = 
C. Retailing  services  + ≈ ∆ + + + = 
D. Franchising  = ∆ ∆ + + ∆ = 
E. Other  ∆ ∆ ∆ ∆ ∆ ∆ = 
5. Educational  services   
A. Primary education services  = = ∆ = < + ∆ 
B. Secondary education services  ≈ = ∆ + < + ∆ 
C. Higher education services  ≈ = ∆ + + + ∆ 
D. Adult education  ∆ ∆ ∆ + + ∆ ∆ 
E. Other education services  + ∆ ∆ + ∆ + ∆ 
6. Environmental services   
A. Sewage services  < ∆ ∆ + + ∆ = 
B. Refuse disposal services  < ∆ ∆ = + ∆ = 
C. Sanitation and similar services  < ∆ ∆ ∆ + ∆ = 
D. Other  ∆ ∆ ∆ + + ∆ = 
7. Financial services   
A. All insurance  and insurance -related  services  = + + + + + + 
B. Banking  and other financial  services  + + + + + + + 
C. Other  + ∆ ∆ ∆ = + ∆ 
8. Health related and social services   
A. Hospital services  = = ∆ + < < = 
B. Other Human Health Services  < = ∆ ∆ = < = 
C. Social Services  = = = = = = = 
D. Other  = = ∆ ∆ = = = 
9. Tourism and travel related services   
A. Hotels  and restaurants (incl. catering)  = = < + + + = 
B. Travel  agencies  and tour operators'  services  + = + + = + = 
C. Tourist  guides  services  = = + = + + ∆ 
D. Other  ∆ ∆ ∆ ∆ ∆ ∆ ∆ 
10. Recreational , cultural and sporting services   
A. Entertainment  services  ∆ ∆ ∆ + + ∆ ∆ 
B. News agency services  = ∆ ∆ + = ∆ = WT/REG395/1  
 
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  Sectors (CPC Classification) –  
Commitments under the CPTPP  
Australia  
New Zealand  
Singapore  
Vietnam  
Japan  
Mexico  
Canada  
C. Libraries, archives, museums and other cultural services  ∆ ∆ + ∆ + ∆ ∆ 
D. Sporting and other recreational services  + ∆ ∆ + + ∆ ∆ 
E. Other  ∆ ∆ ∆ ∆ ∆ ∆ ∆ 
11. Transport services   
A. Maritime Transport Services  + + + + + ∆ ≈ 
B. Internal Waterways Transport services  ∆ ∆ ∆ + + ∆ ∆ 
C. Air  Transport  Services  + + ∆ + + + ≈ 
D. Space  Transport services  ∆ ∆ ∆ = = ∆ ∆ 
E. Rail  Transport  Services  ∆ + ∆ + + ∆ + 
F. Road  Transport  Services  + + ∆ + + + + 
G. Pipeline  Transport services  = = ∆ = + ∆ ∆ 
H. Services  auxiliary  to all modes  of transport  + + ∆ + + + ≈ 
I. Other  Transport  Services  ∆ ∆ ∆ ∆ ∆ + ∆ 
        
  No sector -specific 
reservations apply under 
the CPTPP   Some sector -specific 
reservations apply  under the 
CPTPP   No commitments under 
the CPTPP  
+: commitments under the Agreement are broader than under the GATS . 
=: commitments under the Agreement and the GATS are the same.  
≈: commitments under the Agreement and the GATS are similar.  
<: commitments under the GATS are broader than under the Agreement . 
∆: new subsector added under the Agreement as there no commitments under the GATS.  
Note:  MFN and horizontal limitations, as well as Mode 4 commitments/limitations are not considered.  
Sourc e: Annexes I , II and III  of the Agreement . 
 
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
Article 10.8 on domestic regulation replicates some of the provisions of GATS Article VI but 
also includes several new provisions. The Parties recognize the right to regulate and introduce new 
regulations on the supply of services in order to meet their po licy objectives while ensuring that any 
such measures are based on objective and transparent criteria and in the case of licensing 
procedures are not in themselves a restriction on the supply of the service. In addition to these 
GATS provisions, the Partie s agree that where authorisation is required for the supply of a service, 
they shall inform applicants of a decision within a reasonable period of time; establish an indicative 
timeframe for the processing of applications to the extent practicable; inform applicants of the 
reasons for rejection of an application; provide them with the opportunity to correct minor errors 
and omissions in the application; and accept copies of documents that are authenticated in place of 
original documents in accordance with t he Party's laws.  
Authorization fees shall be reasonable, transparent and not restrict the supply of the relevant 
service. If licensing or qualification requirements include the completion of an examination, it is to 
be scheduled at reasonable intervals an d allow a reasonable period of time to enable interested 
persons to submit an application. In addition, procedures are to be put in place domestically to 
assess the competency of professionals of other Parties. The provisions on domestic regulation do 
not apply to the non -conforming aspects of measures regarding national treatment and market 
access listed in Annexes I and II.  
If the results of the negotiations under paragraph 4 of Article VI of the GATS, or of any similar 
negotiations undertaken in other fo ra enter into effect, the Parties shall jointly review these results 
with a view to bringing them into effect, as appropriate, under the Agreement.  
In addition to the provisions on transparency found in Chapter 26, the Parties agree to 
maintain or establis h appropriate mechanisms for responding to inquiries from interested persons    WT/REG395/1  
 
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  on regulations that relate to Chapter 10. If a Party does not provide advance notice for comment on 
these regulations, it shall to the extent practicable provide its reasons for n ot doing so. To the extent 
possible, each Party shall allow reasonable time between the publication of final regulations and the 
date when they enter into effect (Article 10.11).  
4.5.2   Recognition  
Article 10.9 on recognition of service suppliers' qualifications reproduces paragraphs 1 to 3 of 
Article VII of the GATS but also adds new provisions. When a Party recognizes, autonomously, or by 
agreement the education or experience obtained, requirements met, or licenses or certifications 
granted in the territory of another Party or a non-party, the Party is not obliged to accord the same 
recognition to another Party. Moreover, the Parties shall endeavour to facilitate trade in professional 
services including through the establishment of a Professional Services Working  Group as set out in 
Annex 10 -A. The Working Group shall meet annually, or as agreed by the Parties, and shall report 
to the Agreement's Commission on its progress and on the future direction of its work within two 
years of the Agreement's entry into force . As at March 2021, the Working Group had met twice, in 
July and November 2020.  
In Annex 10 -A the Parties may consider taking steps to implement a temporary or project -
specific licensing or registration regime based on a foreign supplier's home license or recognized 
professional body membership, without the need for further written examination.  
For engineering and architectural services, they recognize APEC's work in promoting mutual 
recognition of professional competence and mobility within the APEC regio n through the APEC 
Engineer and APEC Architect frameworks, which includes the maintenance of an engineer and 
architect register by country. The Parties have agreed to encourage their relevant professional bodies 
to work towards becoming authorised to opera te such registers and to enter into mutual recognition 
arrangements.69 
In legal services, the Parties recognize that transnational legal services that cover the laws of 
multiple jurisdictions play an essential role in facilitating trade and investment and in promoting 
economic growth and business confidence. If a Party regulates or seeks to regulate foreign lawyers 
and transnational legal practice, they shall encourage their relevant bodies to take into account, 
subject to their laws and regulations, the wo rking practices described in paragraph 10 of Annex  10-A. 
4.5.3   Subsidies  
Chapter 10 of the Agreement does not apply to subsidies or grants, and Chapter 9 excludes 
subsidies from the Parties' obligations regarding national and MFN treatment and the appointment 
of senior management and boards of directors (Article 9.12) .70  
4.5.4   Safeguards  
The Agreement allows  the Parties to maintain or adopt restrictive measure s affecting trade in 
services, payments  or transfers in the event of serious balance of payments or macroecono mic 
difficulties or threats thereof .71 Such measures must be consistent with the Parties'  national and 
MFN obligations under the Agreement72, their commitments on expropriation and compensation 
(Article 9.8)  and with IMF clauses (Article 29.3).  Moreover, t hey must be temporary, progressively 
phased out and shall not exceed 18 months in duration, except in exceptional circumstances and 
 
69 The Parties indicated that a s at March 2021 six Parti es (i.e. Australia, Canada, Japan, Mexico, New 
Zealand, Singapore) were authorised to operate the APEC Architect register  (but Mexico is not part of the APEC 
Agreement ), and another five (i.e. Australia, Canada, Japan, New Zealand and Singapore) the APEC E ngineer 
register.  Singapore also noted that it  has an APEC Architects Trilateral Agreement with Australia and New 
Zealand for the reciprocal recognition of registered architects.  
70 Investors of another Party and covered investments shall benefit from non -discriminatory treatment 
with respect to measures relating to subsidies adopted or maintained in the case of armed conflict or civil strife 
unless such measures are listed in the Pa rties' Annexes of non -conforming measures (Article 9.7).  
71 Payments or transfers relating to foreign direct investment  are excluded from the application of such 
measures.  
72 Such measures must be consistent with national and MFN treatment as laid out in Cha pters 9 
(Investment), 10 (CBTS) and 11 (Financial Services).  WT/REG395/1  
 
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  subject to notification procedures and the Parties' agreement.73 In the case of restrictions on capital 
outflows, they shall  not interfere with investors' ability to earn a market rate of return in the territory 
of the restricting Party on any restricted assets; and not be used to avoid necessary macroeconomic 
adjustment (Article 29.3). Measures should be price -based. Should qu antitative restrictions be used 
the Party shall explain the rationale.  
Measures are to be notified in writing together with a time schedule or conditions necessary 
for their removal.  
4.5.5   Other provisions  on Investment  
Chapter 9 deals with investment and appli es to measures adopted or maintained by a Party 
at the central, regional and local level of government relating to (a) investors of another Party; (b) 
covered investments74; and (c) with respect to performance requirements and environmental, health 
and oth er regulatory objectives, all investments in the territory of that Party (Article 9.2). In the 
event of any inconsistency between chapter 9 and another chapter of the Agreement, the other 
chapter prevails.  
In addition to the provisions on denial of benefit s, performance requirements, senior 
management and board of directors,  and MFN and national treatment , described in previous 
sections, Chapter 9 includes provisions dealing with minimum standard s of treatment  (Article 9.6) , 
treatment in case of armed conflict or civil strife  (Article 9.7) , expropriation and compensation 
(Article  9.8), transfers (Article 9.9),  non-conforming measures (Article 9.12),  subrogation 
(Article  9.13), special formalities and information requirements (Article  9.14), the need to ensure 
environment, health and other regulatory objectives  (9.16) , and corporate social responsibility  
(Article 9.17) .  
The Parties agree for example to accord to covered investments a minimum standard of 
treatment in accordance with applicable customary i nternational law principles, including fair and 
equitable treatment and full protection and security (Article 9.6). Article 9.6 is to be interpreted in 
accordance with Annex 9 -A (Customary International Law).  
No Party shall expropriate or nationalise a covered investment either directly or indirectly 
through measures equivalent to expropriation or nationalisation except for public purposes; in a 
non-discriminatory manner; on payment of prompt, adequate and effective compensation; and in 
accordance with due process of law.75 The provision on expropriation does not apply to the issuance 
of compulsory licenses granted in accordance with the TRIPS Agreement (Article  9.8). 
Nothing in Chapter 9 shall prevent a Party from adopting, maintaining or e nforcing measures 
otherwise consistent with the Chapter to ensure that its investment activity is undertaken in a 
manner sensitive to environmental, health or other regulatory objectives (Article 9.16). The Parties 
also reaffirm the importance of encouragi ng enterprises to voluntarily incorporate internationally 
recognised standards, guidelines and principles of corporate social responsibility (Article 9.17).  
With regard to non-conforming measures affecting investment, if a Party considers that a 
non-confor ming measure applied by a regional level of government of another Party creates a 
material impediment to investment in relation to the former Party it may request consultations with 
a view to exchanging information on the operation of the measure and to co nsidering whether further 
steps are necessary.  No Party shall under any measure adopted after the Agreement's entry into 
force and covered by Annex II, require an investor of another Party, by reason of its nationality, to 
sell or otherwise dispose of an i nvestment (Article 9.12).  
Finally, Chapter 9 (Section B) provides for a mechanism for the settlement of disputes 
between an investor and the host Party , which is described in section 5.6  of this report . Before 
 
73 The measures may be extended for additional periods of one year.  
74 A covered investment means, with respect to a Party, an investment in its territory of an investor of 
another Party in existence as of the date of entry into force of the Agreement for those Parties, or established, 
acquired or expanded thereafter (Articl e 9.1).  
75 The article on expropriation and compensation is to be interpreted in accordance with Annex 9 -B 
(Expropriation) and is subject to Annex 9 -C (Expropriation Relating to Land) which lays out conditions that 
apply to Singapore and Viet Nam as expropr iating Parties.  WT/REG395/1  
 
- 56 - 
 
  submitting a claim to arbitration, the claima nt and respondent should seek to resolve the dispute 
through consultation and negotiation.  
Through bilateral side letters, the agreements between Australia and Mexico, and Australia 
and Viet Nam on the promotion and protection of investments were terminat ed.76 
4.6  Sector specific  provisions on trade in services  
4.6.1   Financial Services  
The Agreement deals with  financial services  in Chapter 11. For New Zealand and Viet Nam, 
this is the first time such an approach is used in one of their agreements.77 Chapter 11 applies to 
measures by a Party affecting: (a)  financial institutions of another Party; (b) investors of another 
Party, and their investments in financial institutions in the Party's territory; (c) and cross -border 
trade in financial services.78 It does not  apply to measures related to activities or services: (a) 
forming part of a public retirement plan or social security system, or (b) for the account, or with the 
guarantee of the Party or using its financial resources  unless a Party allows any of these act ivities 
or services to be conducted by its financial institutions in competition with a public entity or a 
financial institution  (Article 11.2). Government procurement of financial services and subsidies or 
grants with respect to the cross -border supply of  financial services are also excluded from the scope 
of the Chapter.79  
The Chapter contain s the Parties' liberalization commitments in financial services as well as 
regulatory provisions , which are built upon those under the GATS Annex on Financial Servic es and 
Understanding on Commitments in Financial Services (hereafter the GATS Understanding) . The 
GATS Understanding has been adopted by Australia, Canada, Japan and New Zealand. Chapter 11 
contains provisions on  MFN and national treatment (section 4.4.2),  exceptions and prudential 
measures, market access (section 4.4.1), new financial services, the treatment of financial and 
confidential information, senior management  and boards of directors requirements, recognition, 
regulatory transparency, self -regulato ry organi sations, access to payment and clearing systems, 
expedited availability of insurance services, performance of back -office functions, consultations, and 
dispute settlement.  These provisions are to a large extent more detailed than those under the G ATS 
Annex on Financial Services and the GATS Understanding , and in some cases deal with new topics 
like for example the importance of having regulatory procedures to expedite the offering of insurance 
services , or arbitrary requirements on the performance of back -office functions .80  
In addition, Chapter 1 1 incorporates various obligations from Chapter s 9 (Investment) and 
10 (Cross-Border  Trade). These provisions refer to minimum standard s of treatment (Article 9.6), 
treatment in case of armed conflict or c ivil strife ( Article 9.7), expropriation and compensation  
(Article 9.8), payment and transfers (Articles 9.9 and 10.12), special formalities and information 
requirements (Article 9.1 4), denial of benefits (Articles 9.15 and 10.10), and investment and 
environmental, health  and other regulatory objectives (Article 9.16). The provision on minimum 
 
76 The agreements shall continue to apply for a period of five years from the date of their termination to 
any investment made before the entry into force of the CPTPP with respect to any act or fact that took place or 
any situation that exi sted before the date of termination. An investor may only submit a claim within three 
years of the termination. Australia further clarify that the side letter between Australia and Peru under the 
Agreement would similarly have operated to terminate the bil ateral agreement on promotion and protection of 
investments if the Agreement had entered in force for both before the Peru -Australia Free Trade Agreement did 
so; a side letter under that agreement has now terminated the bilateral agreement on promotion and  
protection of investments.  
77 As at April 2020.  
78 Financial services are defined as in the GATS Annex on Financial Services.  
79 Subsidies or grants with respect to the cross -border supply of financial services includ e government -
supported loans, guarantees and insurance . 
80 In very few cases, the scope of the provisions under the Agreement does not go beyond that  under 
the GATS Annex on Financial Services  or Understanding on Commitments in Financial Services (hereafter the 
GATS Understanding). This is for exa mple the case of the provisions on the recognition of prudential measures 
and payment and clearing systems.  WT/REG395/1  
 
- 57 - 
 
  standard of treatment was originally subject to the Agreement's Investor -State dispute settlement 
mechanism but this is no longer the case following suspensions in Article 11.2 (subparagraph 2).81  
The Parties also include specific commitments in Annex 11 -B which deal with: cross -border 
supply of portfolio management services; transfer of information; supply of insurance by postal 
insurance entities; electronic pa yment card services; and additional transparency.  
The Parties commit to establish a Committee on Financial Services that will supervise the 
implementation of this Chapter and meet once a year, unless agreed otherwise (Article 11.19).  As 
at March 2021, the Committee has already met once, in July 2020.  
The Parties' main commitments in selected areas are described below.  
The Parties allow cross -border supply (mode 1) of the financial services specified in Annex  11-
A. The list of activities is country -specific  and is broader than that in the GATS Understanding for all 
the Parties as it includes intermediation services and other insurance related services. Mexico, 
Singapore and Viet  Nam include in their list only certain intermediation services.82  
The Parties a lso agree to allow persons located in their territory and their nationals wherever 
located to purchase financial services from a supplier of another Party located in the territory of a 
Party other than the permitting Party; but they are not obliged to auth orize these suppliers to do 
business or solicit in their territory. They also reserve the right to require the registration or 
authorization of cross -border financial service suppliers of another Party and of financial instruments 
(Article 11.6).  
The suppl y of financial services through mode s 1-3 is subject to a negative list approach with 
all of a Party 's financial services measures liberalized unless reservations with regard to the 
obligations of national and MFN treatment, market access for financial ins titutions, cross -border 
trade and senior management and boards of directors have been scheduled as set out in Annexes 
11-A (Cross -border trade), III-A (for existing measures) and III -B (for future measures) 
(Article  11.10)  (see Party-specific  Annexes).83 Annexes  III-A on existing non -conforming measures 
are subject to standstill and ratchet obligations.84 Viet Nam benefits from a grace period of three 
years before the full ratchet mechanism applies (Annex 11 -C). The Parties' liberalization 
commitments are d escribed in detail in the country Appendices of this report.  
The Parties commit to permit financial institutions of another Party  to supply a new financial 
service that it would permit its own financial institutions, in like circumstances, to supply but reserve 
the right under the Agreement to apply authori sation conditions and impose the legal form through 
which  the institution may provide such service (Article 11.7 ).  
Commitments regarding self -regulatory organisations are broader than those under the GATS 
Understanding, which includes only national treatment obligations. Under the Agreement, self -
regulatory organisations shall grant national and MFN treatment to financial institutions or services 
suppliers of another Party in situations when the later are required to be a member of, participate 
in or have access to a self -regulatory organisation in order to provide a financial service in or into 
the Party (Article 11.14).  
In addition to  exceptions for prudential reasons and regarding  monetary and related credit 
policies or rate exchange related policies ( both similar to provisions  in the GATS Annex on Financial 
Services) , Article 11.11 allows exception s: (i) to prevent or limit, despite the provisions on transfers 
 
81 Article 11.2 (subparagraph 2(b)) incorporated the provisions on the settlement of disputes between a 
Party and an investor in Chapter 13 and applied them to  investing disputes dealing with articles mentioned 
above. Of these articles, the reference to  Article 9.6 (Minimum Standard of Treatment) in Sub -paragraph 2(b)  
including footnote 3 , and Annex 11 -E were suspended.  
82 Brunei Darussalam did not make any commitments on insurance intermediation but the CPTPP is not 
in force for it.  
83 The Parties further emphasized that f or cross -border trade in financial services, the reservations for 
national treatment in Annex III need to be read alongside the positive list of financial services a Party agrees to 
permit in Annex 11 -A (Cross -Border Trade). Not all services are liberalized unless a reservation exists in Annex 
III; and if the service is not listed in Annex 11 -A it is not li beralized for cross -border trade (mode 1).  
84 Under the s tandstill provisions , a Party cannot  amend  a non -conforming measure to make it more 
restrictive than the one listed in Annex III-A, while a ratchet mechanism bind s autonomous liberalization.  WT/REG395/1  
 
- 58 - 
 
  incorporated from other chapters, payments and transfers by financial institutions or cross -border 
financial service suppliers to affiliated institutions (but only through the equitable, non -
discriminatory and good faith application of measures relating to maintenance of the safety, 
soundness, integrity, or financial responsibility of financial institutions or cross -border financial 
service suppliers) ; and ( ii) to prevent deceptive and fraudule nt practices or to deal with the effects 
of a default on financial services contracts (similar to Art. XIV(c)(i) of GATS ). 
Like in the GATS Understanding, each Party shall grant to financial institutions of another 
Party established in its territory access  to payment and clearing systems operated by public entities, 
and to official funding and refinancing facilities, but excluding access to the Parties ' lender of last 
resort facilities  (Article 11.15) . 
In addition to these provisions, Viet Nam signed side l etters on electronic payment services 
(EPS)  with Australia, Canada, Japan, Mexico, New  Zealand, and Singapore.85 The side letters give 
Viet Nam the right to adopt or maintain measures on the cross -border supply of electronic payment 
services as long as  they are processed through a national switching facility licensed by the State 
Bank of Viet Nam. The agreement is subject to dispute settlement.  
The Parties commit to promote regulatory transparency in financial services. They agree , to 
the extent practicable , to publish in advance any proposed regulation; and provide interested 
persons and other Parties with the opportunity to comment on the proposals. These commitments 
replace those of Article 26.2 (paragraphs 2 -4) (Publication) in re spect of regulations of general 
application for financial services. The authorities shall also  make publicly available all requirements 
necessary to  request an authorization to  supply  a financial service  covered by the Agreement,  take 
a decision regarding such requests within 120 days, notify the applicant about the decision, and if 
requested, of the reasons for the rejection of the application (Article 11.1 3). 
The Parties may have recourse to the dispute settlement mechanism  under Chapter 28 (see 
section 5 .6) (as amended  by Article 11.21) for disputes arising under Chapter 11.  If disputing Parties 
agree, p anellists in disputes arising under Chapter 11 shall have expertise or experience in financial 
services law or practice, which may include the regulation of financial institutions. The authorities of 
the Parties responsible for financial services are set out in Annex 11 -D. 
The investor -State dispute settlement mechanism described in Section B of Chapter 9 applies 
solely to claims by a financial services inv estor that a Party has breached Article 9.7 (Treatment in 
the Case of Armed Conflict or Civil Strife), Article 9.8 (Expropriation and Compensation), Article 9.9 
(Transfers), Article 9.14 (Special Formalities and Information Requirements) and Article 9.15 ( Denial 
of Benefits)  (Article 11.2) . Pending an agreement between the Parties,  the reference to Article 9.6  
(Minimum Standard of Treatment) with respect to the application of the investor -State dispute 
settlement mechanism  was suspended so that for the time  being a financial services  investor from 
a Party cannot bring to dispute another Party for breaching its obligations under the minimum 
standard of treatment.86 
4.6.2   Telecommunications  
Chapter 13  on telecommunications applies to any measure relating to: access to and use of 
public telecommunications services; obligations regarding suppliers of public telecommunications 
services; and any other measure relating to telecommunications services (Article 13.2).  It does not 
apply to measures relating to broadcast or ca ble distribution of radio or television programming, 
except for the access to and use of public telecommunications services; and those on transparency 
which apply to technical measures to the extent these also affect public telecommunications services.  
Chapter 13 expands upon the GATS Annex on Telecommunications and the Reference Paper, 
which not all the Parties have adopted.87 It includes more detailed provisions on the access to and 
 
85 Viet Na m has also side letters on EPS with Brunei , Chile, Malaysia  (two)  and Peru for which the 
Agreement is not in force  yet. 
86 Pending an agreement between all Parties, the reference to Article 9.6  including footnote 3 in s ub-
paragraph 2(b)  in Article 11.2 (Sco pe), and Annex 11 -E have been suspended, pursuant to paragraph 4(a) of 
the Annex to CPTPP . 
87 Australia, Canada, Japan, Mexico, New Zealand and Singapore ha ve adopted the GATS Reference 
Paper on Telecommunications.  WT/REG395/1  
 
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  use of public telecommunications services88, the conduct and obligations of major suppliers of 
telecommunications services89, allocation and use of scarce resources, transparency, the resolution  
of telecommunications disputes, licensing, and on the independence of regulators.  Only the 
provisions on universal service  (Article 13.17 ) and competitive safeguards (article 13.8) are identical 
(or almost) to those in the GATS Reference Paper.90 
In addition, Chapter  13 entails obligations for suppliers of public telecommunications services  
(i.e. interconnection, number porta bility, access to numbers) , flexibility in the choice of technology , 
international mobile roaming , and enforcement . Each Party must ensure that suppliers of public 
telecommunications services in its territory provide (a) interconnection with suppliers of t hose 
services of another Party, and (b) number portability without impairment to quality and reliability, 
and on reasonable and non -discriminatory terms and conditions.91 It also must ensure that suppliers 
of public telecommunications services of another P arty established in its territory have access to 
telephone numbers on a non -discriminatory basis ( Article 13.5 ). No Party shall prevent suppliers of 
public telecommunications services in its territory to choose the technologies they wish to use to 
supply t heir services, subject to requirements necessary to satisfy legitimate public policy interests 
(Article  13.23).  
In the area of international mobile roaming , the Parties agree to cooperate on promoting 
transparent and reasonable rates  for these services. Th ey must also  provide to the other Parties 
information on rates for retail international roaming services for voice, data, and text messages 
offered to consumers visiting from another Party . The article recognises that the Parties may choose 
to regulate rat es and conditions for wholesale international mobile roaming services and set out 
provisions that would apply if this is the case. At the same time, nothing in Chapter 13 requires a 
Party to regulate rates or conditions for international mobile roaming ser vices (Article 13.6) . 
On enforcement, t he Parties shall provide the ir competent regulatory body with the authority  
to enforce the obligations set out in Chapter 13 including the ability to impose effective sanctions 
which may include financial penalties, injunctive relief (on an interim or final basis), or the 
modification, suspension or revocation of licences (Articl e 13.20) .92 They shall also ensure that their 
enterprises can have recourse to the telecommunications regulatory body to resolve disputes 
regarding the obligations of Chapter 13 and that they have access to appeal procedures should their 
legally protected interests be adversely affected (Article 13.21) .93 The Parties shall ensure that their 
telecommunications regulatory body is independent of any supplier of public telecommunications 
services; and shall not grant more favourable treatment to a supplier of t elecommunications services 
in its territory than that accorded to a like service supplier of another Party on the basis that the 
supplier receiving more favourable treatment is owned by the government of the Party 
(Article  13.16) . 
 
88 Suppliers from other Parties shall have access to and use of public telecommunications services, 
including leased circuits on a reasonable and non -discriminatory basis ; and be able to perform switching, 
signalling, processing, and conversion functions, among others. Enterprises of other Parties must also be able 
to use public telecommunications services for movement of information in the territory or across borders, and 
for access to information stored in any Party (Article 13.4).  
89 Major suppliers in the territory of a Party shall grant to suppliers of public telecommunications 
services of other Parties, no  less favourable  treatment than that accorded in like circumstances to their 
subsidiaries, affiliates or non -affiliated service suppliers , with respect to the availability, provisi on, rates and 
quality of like public telecommunications services, and the availability of technical interfaces necessary for 
interconnection  (Article 13.7 ). Other provisions in Chapter 13 dealing with the conduct and obligations of major 
suppliers of publi c telecommunications services includ e anti-competitive practices (Article 13.8), resale of any 
public telecommunications service (Article 13.9), unbundling of network elements (Article 13.10), 
interconnection (Article 13.11), provisioning and pricing of le ased circuits services (Article 13.12), co -location 
(Article 13.13), access to poles, ducts, conduits and rights -of-way (Article 13.14), and international submarine 
cable systems (Article 13.15).  
90 Each Party has the right to define the kind of universal s ervice obligation it wishes to maintain . 
91 Provisions on number portability apply to certain services only when technically and/or economically  
feasible for Brunei Darussalam, Malaysia and Viet Nam.  
92 The Parties' telecommunications regulatory body shall be separate from and not accountable to any 
supplier of public telecommunications services . To ensur e its independence and impartiality , the regulatory 
body shall not have a financial interest or maintain an operating or management role in any supplier of public  
telecommunications services.  
93 Appeal procedures are not applicable to Australia. With respect to Peru, enterprises may not petition 
for reconsideration of rulings of general application unless provided for under its laws and regulations.  WT/REG395/1  
 
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The Parties further agree  to make publicly available all  measures affecting public 
telecommunications services including rates and other service conditions, technical specifications, 
and licensing requirements . They must also ensure that when their t elecommunications regulatory 
bodies seek  input for regulatory proposals , they follow  a number of transparency  procedures  
(Article  13.22).  In international cooperation, t he Parties recognise the importance of international 
standards for global compatibility and interoperability of teleco mmunications networks and services 
and undertake to promote those standards through the work of relevant international organizations 
(Article 13.25).  
Regarding the implementation of  Chapter 13 , the Parties recognize that regulatory needs and 
approaches dif fer by market and that it is up to the Party to determine how to implement its 
obligations under the Chapter (Article 13.3). For certain provisions  like for example those on the 
obligations of suppliers of public telecommunications services , Viet Nam  negot iated transition 
periods and/or  indicated modifications to the way  the provision s shall apply .94 In the event of any 
inconsistency between this Chapter and another Chapter of the Agreement, Chapter 13 prevails 
(Article 13.24).  
The Parties agree to establis h a Committee on Telecommunications , which shall meet at times 
as the Parties may decide (Article 13.26) . As at February 2021, the Parties had not convened the 
Committee to meet.  
4.6.3   Express Delivery  Services  
Annex 10 -B in Chapter 10 deals with express deliver y services which comprise the collection, 
transport and delivery of documents, printed matter, parcels, goods or other items, on an expedited 
basis, while tracking and maintaining control of these items throughout the supply of the service. 
Express deliver y services do not include air transport services, services supplied in the exercise of 
governmental authority, or maritime transport services. Additional country -specific definitions are 
laid out in footnote 11 of Annex 10 -B. 
The Parties have an obligation to clearly define the scope of postal monopoly (if they have 
one) based on objective criteria, including quantitative elements such as price or weight thresholds. 
They confirm their desire to maintain at least the level of ma rket openness for express delivery 
services that each provides on the date of signature of the Agreement. If a Party considers that 
another Party does not maintain this level of openness it may request consultations.  
The Parties cannot require an express delivery service supplier of another Party to provide a 
basic universal postal service, as a condition of authorization or licensing, or assess fees or other 
charges exclusively on express delivery service suppliers for the purpose of funding the supply of  
another delivery service. The Parties shall ensure that the authority responsible for regulating 
express delivery services is independent and that its decisions and procedures are impartial, 
non-discriminatory and transparent.  
The application of two provi sions originally included in the TPP was suspended by the 
Agreement until the Parties decide through consensus otherwise  (Paragraphs 5 and 6 of 
Annex  10-B). Under these provisions, the Parties had agreed to ensure that any supplier of services 
covered by a postal monopoly does not abuse its position when supplying express delivery services 
and does not cross -subsidize its own or any other competitive suppl ier's express delivery services 
with revenues derived from its monopoly postal services.   
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
Section B of Chapter 26 addresses transparency. It includes the obligation to publish laws, 
regulations, procedures, and administrative rulings of general application with respect to any matter 
covered by the Agreement; principles of consistency and impartiality applicable to administrative 
proceedings; the establishment or maintenance of judicial, quasi -judicial or admi nistrative tribunals 
 
94 Brunei,  Malaysia, Peru  and Chile also negotiated similar flexibilities. In addition, Peru negotiated, in 
Annex 13 -A, some exempt ions for small scale rural telecommunications suppliers . WT/REG395/1  
 
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  or procedures for the prompt review and, if warranted, correction of a final administrative action on 
any matter covered by the Agreement; and the provision of information on any proposed or actual 
measures affecting the operation of t he Agreement.  
While Chapter 26 specifically addresses transparency, some transparency disciplines are also 
included in a number of other Chapters, such as, export licensing procedures (Article 2.13); 
publication of importation, exportation, transit proced ures, rates of duties and taxes, rules, 
regulations and administrative rulings of general application relating to rules of origin (Article 2.16) 
or to customs administration and trade facilitation (Article 5.11); tariff -rate quota administration 
(Article 2 .32); measures and procedures related to trade remedies (Article  6.6); SPS and TBT 
measures (Articles 7.13 and 8.10); cross -border trade in services (Article 10.11); certain measures 
with respect to financial services (Article 11.13); telecommunications (A rticle 13.22); publication of 
notices of intended Government procurement (Article 15.7); competition policies (Article 16.7); 
state-owned enterprises and designated monopolies (Article 17.10); and intellectual property rights 
(Article 18.9).  
5.2  Current paymen ts and capital movements  
With respect to  cross-border trade in services, as well as with respect to investment, each 
Party shall permit all transfers relating to the cross -border supply of services and/or a covered 
investment to be made freely and without delay into and out of its territory (Articles 10.12 and 9.9).  
5.3  Exceptions  
5.3.1   General exception s 
Article XX of the GATT 1994 is incorporated into the Agreement and made applicable to the 
trade relations between the Parties under most provisions of the Agreement , which govern trade in 
goods between the Parties95 (Article 29.1).  
5.3.2   Security exception s 
Article 29.2 allows a Party to derogate from any provision of the Agreement when it considers 
that a measure is necessary for the fulfilment of its obligations to maint ain or restore international 
peace or security, or the protection of its own essential security interests.  
5.3.3   Taxation  
As a principle, nothing in the Agreement shall apply to taxation measures. Moreover, nothing 
in the Agreement shall affect the rights and ob ligations of any Party under any tax convention. Article 
29.4 nevertheless identifies some disciplines under the Agreement, such as national treatment for 
example, that remain applicable to taxation measures in certain circumstances and under certain 
condi tions.  
In the event of any inconsistency between the Agreement and any such tax convention, that 
convention shall prevail to the extent of the inconsistency. If an issue of inconsistency arises between 
the Agreement and a tax convention between two or more  Parties, the Agreement foresees that the 
matter be first addressed by the authorities designated by each Party in Article 29.4 with a view to 
determine the existence (or not) and extent of any alleged inconsistency. It is only at a later stage 
that the is sue may be referred to the mechanism established under Chapter 28 to settle disputes or 
under Article 9.19 on arbitration.  
5.4  Accession and Withdrawal  
Any State or separate customs territory may accede to the Agreement, subject to terms and 
conditions to be agreed with the Parties (Article 5 of the CPTPP).  
 
95 The Chapters covered are 2 (national treatment and market access for goods);  3 (rules of origin and 
origin procedures); 4 (textile and apparel goods), 5 (customs administration and trade facilitation); 7 (SPS 
measures); 8 (TBT); and 17 (State -owned enterprises and designated monopolies).  WT/REG395/1  
 
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Article 4 of the CPTPP addresses withdrawal by providing that withdrawal shall take effect six 
months after a party provides written notice of withdrawal unless the Parties agree on a different 
period.  
5.5  Institutional framework  
Under Chapter 27, the Agreement establishes a Trans -Pacific Partnership Commission 
(hereinafter "the Commission") to, inter alia , consider any matter relating to the implementation or 
operation of the Agreement and supervise the work of all committees, wor king groups and any other 
subsidiary bodies established under the Agreement. Chapter 27 contains provisions on decision -
making by consensus; envisages the establishment of rules of procedure for the Commission, which 
were adopted in October 2019; and the e stablishment of overall contact points to facilitate 
communication between the Parties (Articles 27.3 through 27.5).  
Specific disciplines with respect to reporting in relation to Party -specific transition periods that 
are foreseen in various parts of the Agreement are contained in Article 27.7. In this context, at each 
regular meeting of the Commission, any Party which has a Party -specific transition period for any 
obligation under the Agreement shall report on its plans for and progress towards implementi ng the 
obligation. A written report shall be provided to the Commission six months before the expiry of any 
transition periods of three years or less; and in the case of longer transition periods annually 
beginning from the third year after entry into forc e for the Party concerned. Additional information 
may be requested; written notification of measures taken to implement the obligation for which a 
Party is granted a transition period shall be made; and such matters shall be placed on the agenda 
of the Com mission. According to the Parties the Commission has met on three occasions, in January 
and October 2019 and August 2020.96  
5.6  Dispute settlement  
While cooperation is encouraged  between the Parties at all times to endeavour to agree on 
the interpretation and application of the Agreement (Article 28.2), a dispute settlement mechanism 
between the Parties is established under Chapter 28. This mechanism applies with respect to the 
interpretation or application of the Agreement; when  a Party considers that an actual or proposed 
measure of another Party is or would be inconsistent with an obligation of the Agreement; or any 
nullification or impairment in a case of non -violation.97 Any instrument entered into by two or more 
Parties in connection with the conclusion of this Agreement (including bilateral side letters, or sector -
specific provisions that may be in an Appendix), may also be subject to the dispute settlement 
procedures under C hapter 28 if that instrument so provides.  However, such  instruments  shall not 
affect the rights and obligations under the Agreement of the Parties that are not party to the 
instrument (Article 28.3).  
Disputes arising on the same matter under the Agreement  and any other international 
agreement to which the disputing Parties are party, including the WTO Agreements, may be settled 
in either forum at the discretion of the complaining Party. Once the forum is selected, it shall be 
used to the exclusion of the o ther fora in respect of the matter under dispute (Article 28.4).  
Consultations may be requested by a Party for the purposes of reaching a mutually acceptable 
solution between the concerned Parties (Article 28.5).  
The Parties may agree at any time to volun tarily undertake an alternative dispute resolution, 
such as good offices, conciliation and mediation. These processes may  be suspended or terminated 
 
96 Decisions taken by the Commission, includ ing on the administration and implementation of the 
Agreement; the accession process; State -State Dispute Settlement rules of procedure for panels; and 
Investor -State Dispute Settlement code of conduct are available at https://www.mfat.govt.nz/en/trade/free -
trade -agreements/free -trade-agreements -in-force/cptpp/c omprehensive -and-progressive -agreement -for-trans-
pacific -partnership -text-and-resources/ . 
97 Appendix D -2 between Japan and Canada on motor vehicle trade foresee that neither Japan nor 
Canada may have recourse to dispute settlement under Chapter 28 for null ification or impairment for any 
matter related to the transitional safeguard measure on originating motor vehicles (during a transition period 
only).  WT/REG395/1  
 
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  at any time and, if the Parties agree, they may continue while proceedings of a panel established in 
accord ance with Chapter 28 are in progress (Article  28.6).  
A Panel may be requested and established (Article 28.7), if the dispute is not resolved through 
consultations within 60  days (30 days in a matter regarding perishable goods). A copy of the request 
should  also be made available to other Parties to the Agreement that are not involved in the dispute 
through contact points. The panel shall comprise three members who shall be appointed in 
accordance with Articles 28.9 through 28.11, which governs the compositi on of panels, the 
qualifications of panellists, and the constitution of a roster of panel Chairs and Party specific lists. 
The terms of reference of panels are defined in Article 28.8. The function of panels as well as the 
rules of procedure for panels, th ird Party participation, and the role of experts are established in 
Articles 28.12 through 28.15.  
Panel proceedings may be suspended or terminated (Article 28.16). The panel shall present 
its initial report within 150 days from the date of appointment of t he last panellist and within 
120 days in cases of urgency (Article  28.17). The ruling by the panel is final  (Article 28.18) . 
The responding Party shall, whenever possible, eliminate the non -conformity or the 
nullification or impairment. It shall have a rea sonable period of time to do so, if it is not practicable 
to do so immediately. The Parties shall endeavour to agree on a reasonable period of time within 
45 days presentation of the final report. If not possible, no later than 60 days of the presentation of 
the final report, any disputing Party may refer the matter to the chair of the panel to determine the 
reasonable period through arbitration (Article 28.19).  
If the responding Party does not intend to eliminate the non -conformity or the nullification or 
impairment, or if there is disagreement between the disputing Parties as to whether the responding 
Party has eliminated the non -conformity or the nullification or impairment, the responding Party 
shall, if requested, enter into negotiations with a view to agreeing mutually acceptable compensation 
(paragraph 1 of Article 28.20).  
If the Parties are unable to agree on compensation, or if they agreed on compensation but 
the complaining Party considers that the responding Party has failed to observe the terms o f the 
agreement, the complaining Party may suspend benefits following procedures and under conditions 
established in Article 28.20. Suspension of benefits may not take place if the responding Party 
provides written notice to the complaining Party that it w ill pay a monetary assessment either directly 
or to a fund designated by the disputing Parties for appropriate initiatives to facilitate trade 
(paragraphs 7 through 14 of Article 28.20).  
Compensation, suspension of benefits and the payment of a monetary a ssessment shall be 
temporary and not preferred to full implementation through elimination of the non -conformity or the 
nullification or impairment. Such measures shall only be applied until the responding Party has 
eliminated the non -conformity or the null ification or impairment, or until a mutually satisfactory 
solution is reached.  
Without prejudice to the compensation and suspension of benefits procedures, a compliance 
review is available if the responding Party considers that it has eliminated the non -conformity or the 
nullification or impairment. That review is governed by Article 28.21.  
Each Party shall designate an office to provide administrative assistance to a panel established 
under Chapter 28 for a proceeding in which it is a disputing Party and to perform other related 
functions as the Commission may direct (Article 27.6).  
With respect to private rights, no Party shall provide for a right of action under its law against 
any other Party on the ground that a measure of that other Party is inconsist ent with its obligations 
under the Agreement, or that the other Party has otherwise failed to carry out its obligations under 
the Agreement (Article 28.22).  
With respect to the settlement of international commercial disputes between private parties 
in the free trade area, each Party shall, to the maximum extent possible, encourage and facilitate 
the use of arbitration and other means of alternative dispute resolution (Article 28.23).  WT/REG395/1  
 
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With respect to the modalities for any matter under Chapter 28 that relat es to motor vehicles, 
specific disciplines have been agreed between Canada and Japan (Article 4 of Appendix D to Annex 
2-D of Canada and Appendix D -2 to Annex 2 -D of Japan).  
With respect to disputes between investors and the Parties, a n Investor -State Dis pute 
Settlement mechanism (ISDS) is established in Section B of Chapter 9. A claimant may submit a 
claim to arbitration that the respondent has breached: an obligation under Section A of Chapter 9; 
an investment authorization98; or, on condition that the c laimant has incurred loss or damage as a 
result. A claim can be submitted under the ICSID Convention; ICSID Additional Facility Rules; 
UNCITRAL Arbitration Rules; or any other arbitral institution or rules if the claimant and respondent 
agree. Other provis ions of Section B deal with conditions and limitations on consent of each Party 
(Article 9.21), selection of arbitrators (article 9.22), conduct of the arbitration (Article 9.23), 
transparency of the arbitral proceedings (Article 9.24), governing law (Arti cle 9.25), interpretation 
of annexes (Article 9.26), expert reports (Article 9.27), consolidation (Article 9.28), awards 
(Article  9.29), and service of documents (Article  9.30).  Certain provisions of Section B of Chapter 9, 
(submission of a claim to arbitr ation; selection of arbitrators; governing law and Annex 9 -L) are 
suspended in relation to investment agreements and investment authorisations.  
A code of conduct for ISDS has been drawn up by the Parties in a separate Annex.  
New Zealand has signed s ide let ters with Australia , and Viet Nam on ISDS agreeing  that their 
investors shall not have recourse to ISDS against each other .99 
5.7  Relationship with other agreements concluded by the Parties  
Each Party affirms its rights and obligations under existing internati onal agreements to which 
all Parties are party, including the WTO Agreement, and existing international agreements to which 
that Party and at least one other Party are party.  
If a Party considers that a provision of the Agreement is inconsistent with a provision of 
another agreement to which it and at least one other Party are party, on request, consultations shall 
take place with a view to reaching a mutually satisfactory solu tion. The Parties moreover agree that 
the fact that an agreement provides more favourable treatment for goods, services, investments or 
persons than in the Agreement, does not mean that there is an inconsistency (Article 1.2).  
While Table 1.1 (above) iden tified how many RTAs concluded with one or more Party to the 
Agreement have been notified by each Party, Table 5.1 below shows the Parties' participation in all 
RTAs, notified and non -notified, other than the Agreement.  
Table 5.1: CPTPP Parties' participation in other RTAs (notified and non -notified in force), 
as of 11 March 2021  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
AUSTRALIA  
Indonesia – Australia  05-Jul-20 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Peru – Australia  11-Feb-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - Australia  17-Jan-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Australia – China  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Japan – Australia  15-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Malaysia – Australia  01-Jan-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
 
98 Subject to conditions laid out in Annex 9 -H. 
99 In the case of New Zealand's relations with Viet Nam additional conditions in the side letters apply.  WT/REG395/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
ASEAN - Australia - 
New Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Australia – Chile 06-Mar-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Thailand – Australia  01-Jan-05 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
United States - Australia  01-Jan-05 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Singapore – Australia  28-Jul-03 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
Australia - New Zealand Closer 
Economic Relations Trade 
Agreement (ANZCERTA)  01-Jan-83 
01-Jan-89 Goods  
Services  1983 
1995 GATT Art. XXIV  
GATS Art. V  
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA)  01-Jan-81 Goods  1981 Enabling Clause  
Australia - Papua New Guinea 
(PATCRA)  01-Feb-77 Goods  1976 GATT Art. XXIV  
Pacific Agreement on Closer 
Economic Relations (PACER -
Plus) 12-Dec-20 Goods & 
Services  Not notified  
CANADA  
United Kingdom – Canada  01-Jan-21 Goods  2020 GATT Art. XXIV  
United States -Mexico -Canada 
Agreement (USMCA/CUSMA/T -
MEC)b 01-Jul-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU – Canada  21-Sep-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Canada – Ukraine  01-Aug-17 Goods  2017 GATT Art. XXIV  
Canada - Republic of Korea  01-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Canada – Honduras  01-Oct-14 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Canada – Panama  01-Apr-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Canada – Jordan  01-Oct-12 Goods  2013 GATT Art. XXIV  
Canada – Colombia  15-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Canada – Peru 01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
EFTA – Canada  01-Jul-09 Goods  2009 GATT Art. XXIV  
Canada - Costa Rica  01-Nov-02 Goods  2003 GATT Art. XXIV  
Canada – Chile 05-Jul-97 Goods & 
Services  1997 GATT Art. XXIV & GATS Art. V  
Canada – Israel  01-Jan-97 Goods  1997 GATT Art. XXIV  
JAPAN  
United Kingdom – Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU – Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
Japan – Mongolia  07-Jun-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Japan – Australia  15-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Japan – Peru 01-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
India – Japan  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan – Switzerland  01-Sep-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan – Philippines  11-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  WT/REG395/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
ASEAN – Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
Brunei Darussalam - Japan  31-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan – Indonesia  01-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan – Thailand  01-Nov-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Chile – Japan  03-Sep-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Japan – Malaysia  13-Jul-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Japan – Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Japan – Singapore  30-Nov-02 Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
ASEAN – Japan  
(First Protocol to amend the 
Agreement)  01-Aug-20c Services  Not notified  
United States – Japan  01-Jan-20 Goods  Not notified  
MEXICO  
United States -Mexico -Canada 
Agreement  
(USMCA/CUSMA/T -MEC)b 01-Jul-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Pacific Alliance  01-May-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Mexico – Panama  01-Jul-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Mexico - Central America  01-Sep-12 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Peru – Mexico  01-Feb-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Mexico - Plurinational State of 
Bolivia  07-Jun-10 Goods  2019 Enabling Clause  
Japan – Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Mexico – Uruguay  15-Jul-04 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Brazil – Mexico  02-May-03 Goods  2019 Enabling Clause  
MERCOSUR - Mexico  
[LAIA, AAP.CE 55]  01-Jan-03 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
EFTA – Mexico  01-Jul-01 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Mexico – Cuba 28-Feb-01 Goods  2019 Enabling Clause  
Mexico - Guatemala  
[LAIA, AAP.A25TM 37]  05-Dec-00 Goods  
Services  2020 
Not no tified Enabling Clause - Changes to 
LAIA TM 80  
EU – Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
Israel – Mexico  01-Jul-00 Goods  2001 GATT Art. XXIV  
Latin American Integration 
Association (LAIA) - Accession 
of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Chile – Mexico  01-Aug-99 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Colombia – Mexico  01-Jan-95 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
LAIA - Cultural Goods  
[LAIA , AAR.CEYC 7]  01-Jan-89 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Argentina – Mexico  01-Jan-87 Goods  2019 Enabling Clause  WT/REG395/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
LAIA- Preferences in favour of 
Paraguay  
[LAIA, AAR.AM 3]  01-Jul-84 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
LAIA – Agreement on Regional 
Tariff Preference  
[LAIA, AAR.PAR 4]  01-Jul-84 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Mexico – Paraguay  01-Jan-84 Goods  2019 Enabling Clause  
Ecuador – Mexico  01-May-83 Goods  2019 Enabling Clause  
LAIA - Preferences in favour of 
Ecuador  
[LAIA, AAR.AM 2]  01-May-83 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
NEW ZEALAND  
Republic of Korea - New 
Zealand  20-Dec-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
New Zealand - Chinese Taipei  01-Dec-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - New 
Zealand  01-Jan-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
New Zealand – Malaysia  01-Aug-10 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
China - New Zealand  01-Oct-08 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Trans -Pacific Strategic 
Economic Partnership  28-May-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Thailand - New Zealand  01-Jul-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
New Zealand - Singapore  01-Jan-01 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Australia - New Zealand Closer 
Economic Relations Trade 
Agreement (ANZCERTA)  01-Jan-83 
01-Jan-89 Goods  
Services  1983 
1995 GATT Art. XXIV  
GATS Art. V  
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA)  01-Jan-81 Goods  1981 Enabling Clause  
Pacific Agreement on Closer 
Economic Relations (PACER -
Plus) 12-Dec-20 Goods & 
Services  Not notified   
SINGAPORE  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU – Singapore  21-Nov-19 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
ASEAN – Hong Kong, China  11-Jun-19 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Turkey – Singapore  01-Oct-17 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Singapore - Chinese Taipei  19-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Gulf Cooperation Council (GCC) 
– Singapore  01-Sep-13 Goods & 
Services  2015 Enabling Clause & GATS Art. V  
Costa Rica – Singapore  01-Jul-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V  
ASEAN – India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  WT/REG395/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
Peru – Singapore  01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
China – Singapore  01-Jan-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
ASEAN – Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
Panama – Singapore  24-Jul-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Trans -Pacific Strategic 
Economic Partnership  28-May-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Jordan – Singapore  22-Aug-05 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
India – Singapore  01-Aug-05 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
ASEAN – China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
United States - Singapore  01-Jan-04 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
Singapore – Australia  28-Jul-03 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
EFTA – Singapore  01-Jan-03 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
Japan – Singapore  30-Nov-02 Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
New Zealand - Singapore  01-Jan-01 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
ASEAN – Japan  
(First Protocol to amend the 
Agreement)  01-Aug-20c Services  Not notified  
Sri Lanka – Singapore  01-May-18 Goods & 
Services  Not notified  
ASEAN Framework Agreement 
on Services (AFAS)  12-Aug-98 Services  Not notified  
VIET NAM  
United Kingdom – Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU - Viet Nam  01-Aug-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
ASEAN – Hong Kong, China  11-Jun-19 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Eurasian Economic Union 
(EAEU) - Viet Nam  05-Oct-16 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Chile - Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V  
ASEAN – India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
ASEAN – Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
ASEAN – China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  WT/REG395/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
ASEAN – Japan  
(First Protocol to amend the 
Agreement)  01-Aug-20c Services  Not notified  
ASEAN Framework Agreement 
on Services (AFAS)  12-Aug-98 Services  Not notified  
a Dates of the first entry into force for at least one of the Parties.  
b Parties have notified that NAFTA has been superseded by the USMCA/CUSMA/T -MEC. As a result, the 
 provisions of the NAFTA are no longer in force, except as expressly provided by the 
USMCA/CUSMA/T -MEC. 
c The First Protocol to Amend the Agreement on Comprehensive Economic Partnership among Japan 
and Member States of the Association of Southeast Asian Nations (ASEAN)  entered into force among 
Japan, Lao People 's Democratic Republic, Myanmar, Singapore, Th ailand and Viet Nam on 1 August 
2020. 
Note:  The LAIA reference is indicated in brackets for some  RTAs notified as a change to LAIA's TM 80. 
Further details can be found at: http://www.aladi.org . 
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
 
5.8  Government procurement  
Chapt er 15 contains disciplines on Government procurement for goods and services. The 
Parties' commitments cover procuring entities at the central level of Government and, as applicable, 
for sub -central Government entities, as well as other entities, as defined  in each Party's Schedule in 
Annex 15 -A. Activities that  are not covered are listed under Article 15.2 (paragraph 3). Commitments 
are made subject to the conditions specified in Annex 15 -A, which sets out the specific entities bound 
by the Parties and thre sholds that must be met before procurement can be covered by the disciplines 
in Chapter 15.  
With the agreement of the other Parties, a developing country Party may adopt or maintain 
one or more of the transitional measures100 foreseen in Article 15.5, and as provided for in its 
Schedule in Annex 15 -A. This provision applies to Viet Nam (and Brunei Darussalam and Malaysia 
for which the Agreement is not in force).  
Most of the specific provisions are based on and often mirror those in the revised plurilateral 
WTO Agreement on Government Procurement (GPA). Mutual access to public procurement markets 
on the basis of the principles of national treatment and non -discrimination shall be granted under 
the Agreement (Article 15.4). Exceptions cover, inter alia, measur es necessary to protect public 
morals, order or safety; human, animal or plant life or health; or intellectual property; as well as 
measures relating to goods or services of a person with disabilities, of philanthropic or not -for-profit 
institutions, or pr ison labour (Article 15.3). Chapter 15 prohibits offsets and recognises how rules of 
origin will be determined for covered procurement of a good.  
The Agreement also disciplines procurement and tendering procedures, including publication 
of procurement inf ormation; notices of intended procurement; conditions for participation in 
procurement; qualification of suppliers; limited tendering; and negotiations on covered 
procurement. (Articles 15.6 through 15.11) .101 Chapter 15 also contain s provisions on technica l 
specifications; tender documentation; time periods for procurement methods ; treatment of tenders 
 
100 Transitional measures may take the form, under some conditions, of a price preference programme; 
an offset; the phased -in addition of specific entities  or sectors; and a threshold that is higher than a Party's 
permanent threshold. In the case of Viet Nam, transitional measures are listed in its Schedule in Annex 15 -A 
with respect to: notices of intended procurement; time -period applicable for the final d ate for submission of 
tenders; use of the e -procurement system; post -award information; domestic review; and dispute settlement. 
Moreover, Viet Nam is allowed to seek, take account of, impose or enforce any form of offsets and any stage of 
the procurement under conditions contained in Annex 15 -A for Viet Nam. Furthermore, the Parties will give 
favourable consideration to the extension of the transitional period for up to a maximum of an additional three 
years period, under certain conditions.  
101 Under Articl e 2 of the CPTPP , Part of Article 15.8 (conditions for participation) is suspended . WT/REG395/1  
 
- 70 - 
 
  and awarding of contracts; post -award information; and disclosure of information (Articles 15.12 
through 15.17).  
Some provisions establish new disciplines a s compared to th ose in the GPA. For example, 
each Party shall ensure integrity in procurement practices (Articles 15.18). Participation by SMEs in 
government procurement is also to be facilitated through various measures that are proposed under 
Article 15. 21. The Parties shall also endeavour to cooperate in a number of matters that are identified 
in Article 15.22 .102 
At the time the Agreement entered into force, four Parties (Canada, Japan, New Zealand, and 
Singapore) were parties to the GPA. Australia became a party to the GPA at a later stage. These 
Parties maintain the same thresholds as under the GPA for all types of procuring entities as well as 
for procurement of construction services.  
The modifications and rectifications of the Parties' Schedules (Annex 15 -A) are governed by 
Article  15.20.  
A Committee on Government Procurement is established under Article 15.23 to address 
matters related to the implementation and operation of Chapter 15. That Committee shall also review 
Chapter 15 and it may decide to hold further negotiations to, inter alia , improve market access or 
revise the thresholds set out in Annex 15 -A. Negotiations may also expand coverage, including for 
sub-central entities.  
5.9  Intellectual property rights103 
Chapter 18 covers the protection and enforcement of intellectual property rights (IPRs). 
Subject to some exceptions, it gives rise to obligations on a ll subject matter existing at the date of 
entry into force of the Agreement for a Party and that is protected on that date in the territory of a 
Party where protection is claimed, or that meets or comes subsequently to meet the criteria for 
protection unde r Chapter 18 unless otherwise provided in the Chapter. Chapter 18 does not give 
rise to obligations for acts that occurred before the date of entry into force of the Agreement for a 
Party (Article 18.10).  
Section A of Chapter 18 contains general provision s. It includes provisions on objectives and 
principles related to the protection and enforcement of intellectual property rights , drawing from  the 
WTO TRIPS Agreement. It also affirm s the Parties' commitments to the WTO Doha Declaration on 
the TRIPS Agreem ent and Public Health, including an affirmation that the Chapter can and should 
be interpret ed and implement ed in a manner supportive of each Party's right to protect public health 
and in particular to promote access to medicines for all. Moreover, Chapter  18 does not and should 
not prevent the effective utilisation of the "TRIPS/health solution "104, and affirmed that each Party 
has the right to determine what constitutes a national emergency or other circumstances of extreme 
urgency (Article  18.6).  
 
102 Such as: facilitating the participation by suppliers in government procurement with respect to SMEs; 
exchanging experiences and information of regulatory frameworks, best  practices and statistics; developing 
and expanding the use of electronic means in government procurement systems; capacity building; 
institutional strengthening; and enhancing the ability to provide multilingual access to procurement 
opportunities.  
103 Under Article 2 of the CPTPP, several provisions in parts of Chapter 18 are suspended. This 
suspension covers p art of Articles 18.8 (national treatment); part of 18.37 (patentable subject matter); 18.46 
(patent term adjustment for unreasonable granting authori ty delays); 18.48 (patent term adjustment for 
unreasonable curtailment); 18.50 (protection of undisclosed test or other data); 18.51 (biologics); 18.63 (term 
of protection for copyright and related rights); 1 8.68 (technological protection measures (TPMs));  18.69 (rights 
management information (RMI)); 18.79 (protection of encrypted program -carrying satellite and cable signals); 
18.82 (legal remedies and safe harbours); as well as Annexes 18 -E (Annex to Section J / Internet service 
providers); and 18 -F (Annex  to Section J / Internet service providers).  
104 The "TRIPS/health solution" refers to the Decision of the WTO General Council of 30 August, 2003 o 
the Implementation f Paragraph Six of the WTO Doha Declaration on the TRIPS Agreement and Public Health 
(WT/L/ 540) and the WTO General Council Chairman's Statement Accompanying the Decision (JOB(03)/177, 
WT/GC/M/82), as well as the Decision of the WTO General Council of 6 December 2005 on the Amendment of 
the TRIPS Agreement, (WT/L/641) and the WTO General Council  Chairperson's Statement Accompanying the 
Decision (JOB(05)/319 and Corr.1, WT/GC/M/100).  WT/REG395/1  
 
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The Part ies affirm that they have ratified or acceded to several multilateral agreements105 and 
commit to ratify or accede to a number of others106 by the date of entry into force of the Agreement  
or transition periods as provided in the Chapter .107  
The Parties reaffirm their commitments to accord each other national treatment with respect 
to IPRs, with some exceptions with respect to certain secondary uses of phonograms,  and 
derogations in relation to a Party 's judicial and administrative procedures, and  procedures provided 
in some WIPO Treaties (Article 18.8).  
Transparency provisions are contained in Article 18.9.  
Chapter 18 does not affect the freedom of the Parties to determine whether and under what 
conditions the exhaustion of IPRs applies in their respective legal systems.  
In Section B of Chapter 18 the Parties agree to cooperate on matters covered by Chapter 18. 
Under this section, Parties recognise the importance of improving the quality and efficiency of the 
Parties' respective patent registration systems, as well as simplifying and streamlining the 
procedures and processes of their respective patent offices  for the benefit of all users of the patent 
system and the public as a whole (Article 18.14). The Parties agree to cooperate in the area of 
traditional knowledge in Article 18.16. The Parties are also invited to designate contact points for 
cooperation and  capacity building (Article 18.12).  
Sections C, E, F, G, and H of Chapter 18 contain standards and disciplines, building on those 
in the TRIPS Agreement and other multilateral IP treaties administered by WIPO, covering 
trademarks, geographical indications (GIs), patents, industrial designs, and copyright and related 
rights. Section D includes an obligation on the treatment of country names.  
With respect to trademarks (Section C),  the Agreement contains provisions on types of signs 
registrable as trademarks ; collective and certification marks; use of identical or similar signs; 
exceptions to the rights conferred by a trademark; well -known trademarks; procedural aspects of 
examination, opposition and cancellation; electronic trademarks systems; classification  of goods and 
services; term of protection for trademarks; non -recordal of a Licence; and domain names (Articles 
18.18 through 18.28).  
With respect to GIs (Section E), the Agreement contains provisions on recognition; 
administrative procedures for their pr otection or recognition; grounds for opposition and 
cancellation; guidelines for determining whether a term is that customary in  common language as 
the common name for the relevant good in the territory of a Party; multi -component terms; date of 
protection ; and disciplines for GIs protected or recognised pursuant to an international agreement 
(Articles 18.30 through 18.36).  
With respect to patents (Section F), the Agreement contains provisions on patentable subject 
matter; grace period; patent revocation; e xceptions to the exclusive rights conferred by a patent; 
other use without authorisation of the right holder; patent filing; amendments, corrections and 
observations; publication of patent applications; and information relating to published patent 
applicat ions and granted patents (Articles 18.37 through 18.45). The Section also contain disciplines 
on measures relating to agricultural chemical products, in particular on protection of undisclosed 
 
105 The Patent Cooperation Treaty, as amended on 28 September 1979; the Paris Convention for the 
Protection of Industrial Property, as revised at Stockholm on 14 July 1967; and the Berne Convention for the 
Protection of Literary and Artistic Works, as revised at Paris on 24 July 1971.  
106 The Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, 
done at Madrid on 27 June 1989; the B udapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure (1977), as amended on 26 September 1980; the 
Singapore Treaty on the Law of Trademarks, done at Singapore on 27 March 2006; the Internatio nal 
Convention for the Protection of New Varieties of Plants, as revised at Geneva on 19 March 1991 (UPOV 1991); 
the WIPO Copyright Treaty, done at Geneva on 20 December 1996; and the WIPO Performances and 
Phonograms Treaty, done at Geneva 20 December 20 1 996. A Party may ratify or accede to either the Madrid 
Protocol or the Singapore Treaty.  
107 Specific conditions are applicable to New Zealand with respect to acceding to UPOV 1991 or to adopt 
a sui generis plant variety rights system that gives effect to UP OV 1991, while, inter alia , allowing that the 
interpretation of the Treaty of Waitangi shall not be subject to the dispute settlement provisions of the 
Agreement.  WT/REG395/1  
 
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  test or other data for agricultural chemical products (Article 18.47). Disciplines on measures relating 
to pharmaceutical products, cover regulatory review exception; measures relating to the marketing 
of certain pharmaceutical products; and alteration of period of protection (Articles 18.49, 18.53 
through 18.54).  
With respect to industrial designs  (Section G) , the Agreement contains provisions on 
protection of industrial designs,  confirming that protection for industrial designs is available for 
designs embodied in a part of an article or, alternatively, having a part icular regard to a part of an 
article in the context of the article as a whole (Article 18.55). It also  recognizes the importance of 
improving the quality and efficiency of their  industrial design registration systems as well as 
facilitating the process of  cross-border acquisition of rights in their respective industrial design 
systems108 (Article  18.56).  
With respect to copyright and related rights (Section H), the Agreement contains provisions 
on right of reproduction; right of communication to the public;  right of distribution; absence of 
hierarchy between authors' rights and performers' or producers' rights with respect to work 
embodied in a phonogram; related rights (performers and producers of phonograms); application of 
Article 18 of the Berne Conventi on and Article 14.6 of the TRIPS Agreement; limitations and 
exceptions to exclusive rights to certain special cases; balance in copyright and related rights 
systems; contractual transfers; and collective management societies for copyright and related right s 
(Articles 18.57 through 18.62; 18.64 through 18.67; and 18.70).  
Section I of Chapter 18 covers enforcement of IPRs and, beyond general obligations 
(Article  18.71), contains specific disciplines with respect to presumptions; enforcement practices 
with res pect to IPRs; civil and administrative procedures and remedies; provisional measures; 
special requirements related to border measures; criminal procedures and penalties; trade secrets; 
and government use of software (Articles 18.72 through 18.78, and 18.80 ). 
Each Party shall give effect to the provisions of Chapter 18 on the date of entry into force of 
the Agreement. However, it contains  specific transition periods with respect to measures identified 
in Article 18.83.109  
Numerous side letters have been exch anged between Parties with respect to the recognition 
of specific Geographical Indications (GIs) or treatment of certain terms. Some list specific products 
for which GIs are recognized, some acknowledge available measures for the treatment of certain 
terms , and others make a reference to GI -related commitments already granted by a Party to 
another through an existing RTA. In a few cases, the Parties commit to cooperate in GI -related 
matters. The table below identifies which pairs of Parties have concluded s uch side letters.  
Table 5.2: Side Letters exchanged between Parties on GIs  
Subject of side letter  Parties  
Treatment of certain items  Australia -Canada  
Australia -Mexico  
Mexico -New Zealand  
Identification of specific products  Canada -Mexico  
Canada -Viet Nam  
Reference to existing RTAs, which already recognize GIs for 
specific products  New Zealand -Singapore  
Commitment to grant technical assistance and/or to strengthen 
cooperation on GIs and oth er matters.  Canada -Mexico  
Canada -Viet Nam  
 
Viet Nam has also exchanged side letters  for the marketing of certain pharmaceutical 
products, and  on the protection of undisclosed test or other data for agricultural chemical products 
with all the CPTPP Parties .  
 
108 Including giving due consideration to ratifying the Geneva Act of the Hague Agreement Conce rning 
the International Registration of Industrial Designs (1999).  
109 Transition periods are identified with respect to measures that may be taken by, inter alia , Mexico, 
New Zealand, and Viet Nam. In parallel, Japan and Mexico commit to apply at least the term of protection 
available under the transition Party's law for the relevant works during the transition period. Paragraph 4 of 
Article 18.83 contains details on the measures covered by the transition period.  WT/REG395/1  
 
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  5.10  Competition  
Chapter 16 addresses competition policy. It states that each Party shall adopt or maintain 
national competition laws that proscribe anticompetitive business conduct, taking into account the 
APEC Principles to Enhance Competition and Regulato ry Reform110 (Article 16. 1). Before it imposes 
a sanction or remedy against a person for violating its national competition laws, each Party shall 
ensure procedural fairness in competition law enforcement (Article 16.2). The Agreement foresees 
also that eac h Party should adopt or maintain laws or other measures that provide an independent 
private right of action (Article 16.3).111 
Chapter 16 also foresees cooperation and coordination between the Parties' national 
competition authorities to foster effective competition law enforcement in the free trade area 
(Article  16.4) and the sharing of experiences in developing, applying and enforcing competition law 
and policies though technical cooperation (Article 16.5).  
Each Party shall adopt or maintain co nsumer protection laws or other laws or regulations that 
proscribe fraudulent and deceptive commercial activities (Article 16.6).  
Transparency provisions are contained in Article 16.7.  
To address specific matters that may arise under Chapter 16, a Party shall enter into 
consultations with a requesting Party and accord full and sympathetic consideration to the concerns 
of that Party (Article 16.8). No Party shall have recourse to dispute settlement under Chapter 28 of 
the Agreement (Dispute Settlement) for  any matter arising under Chapter 16 (Article 16.9).  
5.11  State -owned enterprises  
Chapter 17 addresses State -owned enterprises  (SOEs)112 and designated monopolies113. In 
the Preamble of the CPTPP , the Parties affirm that SOEs can play a legitimate role in the diverse 
economies of the Parties,  but they  recognize that the provision of unfair advantages to SOEs 
undermines fair and open trade and investment . They also  resolve to establish rules for SOEs that 
promote a level playin g field with privately owned businesses, transparency and sound business 
practise s. 
SOEs, State enterprises and designated monopolies must act in a manner that is not 
inconsistent with the Parties' obligations under the Agreement when the authority to exer cise 
regulatory, administrative or other governmental authority is delegated to them114 (Article 17.3).  
Chapter 17 applies to the activities of SOEs and designated monopolies that affect trade or 
investment between the Parties within the free trade area as well as activities of SOEs that cause 
adverse effects in the market of a non -party. Chapter 17 does not prevent a Party from establishing 
or maintaining a state enterprise, SOE or designating a monopoly.  
There are a number of carve -outs to the obligations  in Chapter 17 (Article 17.2). For example 
some activities performed by central banks or monetary authorities, financial regulatory bodies, or 
 
110 Agreed in Auckland on 13 September 1999.  
111 For the purpose of Article 16.3, "private right of action" means the right of a person to seek redress, 
including injunctive, monetary or other remedies, from a court or other independent tribunal for injury to that 
person's business or property caused by a violation of national competition laws, whether independently or 
following a finding of violation by a national competition authority.  
112 For the purposes of the Agreement "state -owned enterprises" are enterprises that are principally 
engaged in commercia l activities in which a Party: (i) directly owns more than 50% of the share capital; (ii) 
controls, through ownership interests, the exercise of more than 50% of the voting rights; or (iii) holds the 
power to appoint a majority of members of the boards of directors or any other equivalent management body.  
113 For the purposes of the Agreement "monopoly" means an entity, including a consortium or 
government agency, that in any relevant market in the territory of a Party is designated as the sole provider or 
purchaser of a good or service, but does not include an entity that has been granted an exclusive intellectual 
property right solely by reason of the grant. A "designated monopoly" means a privately -owned monopoly that 
is designated after the date of entry i nto force of the Agreement and any Government monopoly that a Party 
designates or has designated.  
114 Examples include the power to expropriate, grant licences, approve commercial transactions, or 
impose quotas, fees or other charges.  WT/REG395/1  
 
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  selected activities of State enterprises or SOEs (such as activities undertaken for the resolution of a 
failing o r failed financial institution or enterprise principally engaged in the supply of financial 
services) are not covered by the Agreement. Chapter 17 does not apply to a sovereign wealth fund115 
of a Party, with some exceptions (such as non -commercial assistan ce). Limited obligations are 
applicable to Singapore's sovereign wealth fund (or Singapore itself) (Annex 17 -E). Chapter 17 does 
not apply either to an independent pension fund of a Party or an enterprise owned or controlled by 
such a pension fund, with so me exceptions applicable to disciplines on non -commercial assistance. 
Chapter 17 is not applicable to Government procurement and does not prevent a Party's SOE from 
providing goods or services exclusively to that Party for the purposes of carrying out the Party's 
governmental functions. Moreover, most disciplines under Chapter 17 do not apply to any services 
supplied in the exercise of governmental authority. Existing or future non -conforming measures, as 
set out in the Parties' Schedule to Annex I or II or  in Section A or B of their Schedule to Annex III, 
are also applicable to the purchases and sales of goods or services by SOEs or designated 
monopolies. In addition, t he provisions on non -discriminatory trea tment and commercial 
considerations, and on non -commercial assistance shall not apply to the non -conforming activities 
of SOEs or designated monopolies listed in each Party's Schedule to Annex IV in accordance with 
the terms of the Schedule (Article 17.9).  
Further exceptions are contained in Article 17.1 3. Measures to respond temporarily to a 
national or global economic emergency are permitted. The supply of financial services by a SOE 
pursuant to a government mandate if the service supports certain exports or imports, or private 
investment outside the te rritory of the Party, under certain conditions, is also carved -out from the 
non-discrimination and commercial considerations provisions.  
SOEs, when engaging in commercial activities, shall act in accordance with commercial 
considerations in the purchase o r sale of a good or service and grant non -discriminatory treatment 
to goods, services, investment or investors of any other Party. Similarly, designated monopolies 
shall act in accordance with commercial considerations in the purchase or sale of a monopoly  good 
or monopoly service and grant non -discriminatory treatment to goods, services, investment or 
investors of any other Party. Moreover, designated monopolies shall not use their monopoly position 
to engage in anticompetitive practices in a non -monopolis ed market in its territory that negatively 
affects trade or investment between the Parties, either directly or indirectly.116  
Article 17.6 governs the use of non -commercial assistance. No Party (or its State enterprise 
or SOE) shall cause adverse effects t o the interest of another Party through the use of non -
commercial assistance that it may provide to an SOE for certain types of activity. Moreover, no Party 
shall cause injury to a domestic industry of another Party through the use of non -commercial 
assist ance that it provides to any of its SOEs that is a covered investment in the territory of the 
other Party in certain circumstances. The notion of "adverse effects" is defined in Article 17.7, while 
"injury" is clarified in Article 17.8.  
The Agreement fores ees that SOEs or designated monopolies with an annual revenue derived 
from their commercial activities below a defined threshold117 shall not be bound by disciplines related 
to non -discriminatory treatment and commercial considerations, non -commercial assis tance, 
transparency, and the Committee on State -Owned Enterprises and Designated Monopolies in 
Chapter 17.  
Article 17.5 states, in certain circumstances, that each Party's courts have jurisdiction over 
civil claims against an enterprise owned or controlled  through ownership interests by a foreign 
Government based on a commercial activity carried out in its territory (Article 17.5).  
 
115 For the purposes of t he Agreement, "sovereign wealth fund" means an enterprise owned, or 
controlled through ownership interests that: (i) serves solely as a special purpose investment fund or 
arrangement for asset management, investment, and related activities, using financial  assets of a Party; and 
(ii) is a member of the International Forum of Sovereign Wealth Funds or endorses the Generally Accepted 
Principles and Practices ("Santiago Principles") issued by the International Working Group of Sovereign Wealth 
Funds or such ot her principles and practices as may be agreed to by the Parties.   
116 including through its dealings with its parent, subsidiaries or other entities owned by the Party or the 
designated monopoly.  
117 The calculation of the applicable threshold is defined in p aragraph 5 of Article 17.13 and further 
detailed in Annex 17 -A. WT/REG395/1  
 
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In Annex 17 -D, the Parties list the obligations in Chapter 17 that shall not apply to their 
respectivesub -central SOEs or sub -central designated monopolies. The Parties nevertheless agree 
that, within five years of the date of entry into force of the Agreement, they shall conduct further 
negotiations on extending the application of the disciplines in Chapter 17 to the activities o f sub-
central SOEs, and sub -central designated monopolies listed in Annex 17 -D.  
Transparency disciplines in Article 17.10 with respect to, for example, the provision, including 
through official websites, of a list of state -owned enterprises; the prompt no tification of the 
designation of a monopoly or the expansion of the scope of existing monopoly; or the provision of 
information regarding non -commercial assistance policies or programmes, become applicable to Viet 
Nam after a five -year transition period an d subject to certain conditions. The provision of technical 
cooperation between the Parties is foreseen under Article  17.11.  
In any dispute that may be settled under the Agreement (Chapter 28), a specific process for 
developing information concerning SOEs  and designated monopolies, in Annex 17 -B, is applicable 
(Article  17.15).  
The Agreement establishes a committee on State -Owned Enterprises and Designated 
Monopolies to, inter alia , review and consider the operation and implementation of Chapter 17.  
5.12  Enviro nment  
Chapter 20 contains provisions on the environment. The objectives of Chapter 20 are to 
promote mutually supportive trade and environmental policies; promote high levels of environmental 
protection and effective enforcement of environmental laws; and enhance the capacities of the 
Parties to address trade -related environmental issues, including through cooperation (Article 20.2). 
While the Parties recognise the sovereign right of each Party to establish its own levels of domestic 
environmental protectio n and environmental priorities, they agree not to waive or otherwise 
derogate from their environmental laws in a manner that weakens or reduces the protection afforded 
in them to encourage trade or investment between them (Article 20.3).  
The Parties affir m their commitment to implement the multilateral environmental agreements 
to which they are a party (Article 20.4). With respect to the protection of the ozone layer, each Party 
shall take measures to control the production and consumption of, and trade in , certain substances 
that can significantly deplete and otherwise modify the ozone layer in a manner that is likely to 
result in adverse effects on human health and the environment (Article 20.5).118 Additionally, each 
Party shall take measures to prevent t he pollution of the marine environment from ships in order to 
protect and preserve the marine environment (Article 20.6).119  
Chapter 20 also contains provisions on procedural matters; opportunities for public 
participation and public submission regarding the Parties' implementation of the Chapter; the 
encouragement of voluntary adoption by enterprises of principles of corporate social responsibility 
that are related to the environment; and the encouragement of the use of voluntary mechanisms to 
enhance environmental performance (Articles 20.7 through 20.11).  
The Parties' commit to develop and use cooperation frameworks, includin g through contact 
points (Article 20.12) and on specific issues such as trade and biodiversity (Article 20.13); invasive 
alien species (Article 20.14); and transition to a low emissions and resilient economy (Article 20.15). 
With respect to marine capture fisheries (Article 20.16), they agree, inter alia , not to grant or 
maintain any subsidies for fishing that negatively affect fish stocks that are in an overfished 
condition, and subsidies provided to any fishing vessel while listed by the flag State or a r elevant 
Regional Fisheries Management Organization or Arrangement for illegal, unreported and unregulated 
(IUU) fishing in accordance with the rules and procedures of that organization or arrangement and 
 
118 This provision pertains to substances controlled by the Montreal Protocol on Substances that Deplete 
the Ozone Layer (Montreal Protocol of 1987), including any future amendments thereto. Eac h Party lists 
measures implementing its obligations under the Montreal Protocol I Annex 20 -A to the Agreement.  
119 This provision pertains to pollution regulated by the International Convention for the Prevention of 
Pollution from Ships (ICPPS, done in Londo n, 1973), as modified by the Protocol of 1978 relating to the ICPPS, 
and the Protocol of 1997 to amend the ICPPS, generally referred to as MARPOL, including any future 
amendments thereto. Each Party lists measures implementing its obligations under MARPOL in Annex 20 -B to 
the Agreement.  WT/REG395/1  
 
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  in conformity with international law. The Parties al so commit to adopt, maintain and implement laws, 
regulations and any other measures to fulfil its obligations under the Convention of International 
Trade in Endangered Species of Wild Fauna and Flora (CITES) (Article 20.17).  
The Agreement establishes the E nvironment Committee in Article 20.19 to, inter alia , provide 
a forum to discuss and review the implementation of Chapter 20. The Committee shall meet within 
one year of the date of entry into force of the Agreement and every two years thereafter unless 
otherwise agreed. During the fifth year after the date of entry into force of the Agreement, it shall 
review the implementation and operation of Chapter 20. Subsequent reviews are possible as decided 
by the Parties.  
Recognizing the importance of trade in env ironmental goods and services, the Environment 
Committee shall consider issues identified by a Party or Parties related to such trade, including issues 
identified as potential non -tariff barriers to that trade (Article 20.18).  
Consultations are foreseen to agree on the interpretation and application of Chapter 20 
(Article 20.20). If they fail, Senior Representative Consultations (Article 20.21) may be held, and if 
these fail, consultations at a Ministerial level may take place ( Article 20.22). It is only at a later 
stage that dispute settlement under Chapter 28 may be initiated (Article 20.23).  
Under Article 2 of the CPTPP, Part of Article 20.17 (conservation and trade) is suspended.  
5.13  Labour  
Chapter 19 contains provisions on labo ur. The Parties affirm their oblig ations as members of 
the Interna tional Labour Organization (ILO), including those stated in the ILO Declaration  on 
Fundamental Principles and Rights at Work and its Follow -up (1998)  regarding labour rights120 within 
their t erritories and commit to adopt and maintain in their laws the rights contained in the 
Declaration. They also recognise  that labour standards should not be used for protectionist trade 
purposes (Articles 19.2 and 19.3). The parties agree to have laws govern ing acceptable conditions 
of work with respect to minimum wages, hours of work, and occupational safety and health (as per 
subsection 19.3.2) They also agree not to waive or otherwise derogate from, or offer to derogate 
from, their statutes or regulations to encourage trade or investment (Article 19.4). Moreover , they  
agree not to fail to effectively enforce their labour laws after the date of entry into force of the 
Agreement (Article 19.5). The Agreement also contains provisions on forced or compulsory lab our; 
corporate social responsibility; public awareness of the Parties' labour laws and procedural 
guarantees in relation to proceedings before domestic tribunals for the enforce ment of their labour 
laws (Articles 19.6 through 19. 8). 
The Parties agree to coo perate for the effective implementation of Chapter 19 and to enhance 
opportunities to improve labour standards and advance common commitments regarding labour 
matters, including workers ' wellbeing and quality of life (Article 19.10). They shall designate c ontact 
points (Article 19.13) to facilitate communication, coordination and cooperation between the Parties 
and, inter alia , receive and consider public submissions (Article 19.9). Contact points are also 
instrumental in the context of the cooperative labo ur dialogue which is an additional mechanism for 
cooperation and resolution on labour issues established under Article 19.11. Each Party shall also 
establish or maintain, and consult with, a national labour consultative or advisory body or similar 
mechanis m, for members of the public, including representatives of labour and business 
organisations, to provide views on matters regarding Chapter 19 (Article 19.14). The Parties shall 
also make every effort through cooperation and consultation based on the princ iple of mutual respect 
to resolve any matter arising under Chapter 19 (Article 19.15). If the consulting parties fail to resolve 
the matter, the requesting party can request the establishment of a panel under the Agreement 's 
dispute settlement procedures, which can result in the imposition of trade sanctions if the panel 
confirms the non -compliance.  
Article 19.11 provides for a process of cooperative labour dialogue in the event of any issues 
arising between Parties, whilst Article 19.15 provides for a proc ess of labour consultation prior to 
 
120 In particular freedom of association and the effective recognition of the right to collective bargaining; 
the elimination of all forms of forced or compulsory labour; the effective abolition of child labour and, for the 
purposes of the Agreement, a prohibition on the worst forms of child labour; and the elimination of 
discrimination in respect of employment and occupation.  WT/REG395/1  
 
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  any recourse to dispute settlement under the Agreement. The Parties commit to making every effort 
through cooperation and consultation based on the principle of mutual respect to resolve any matter 
arising under the Chap ter. 
The Agreement establishes a Labour Council to consider matters related to Chapter 19 and, 
inter alia , agree on a general work programme (Article 19.12). During the fifth year after the date 
of entry into force of the Agreement, or as otherwise decided  by the Parties, the Council shall review 
the implementation of Chapter 19 with a view to ensuring its effective operation and report the 
findings and any recommendation to the Commission established under Chapter 27.  
Viet Nam exchanged side letters with all CPTPP Parties committing to fully implement the 
obligations of Chapter 19. Viet Nam's partners in turn agree to refrain from seeking the suspension 
of benefits with respect to any measure that is inconsistent with the obligations of Chapter 19 
(Labour)  for a transition period of three years after the date of entry into force of the Agreement 
(five years after the date of entry into force of the Agreement for disputes related to paragraph 1(a) 
of Article 19.3which covers freedom of association and the ef fective recognition of the right to 
collective bargaining) with an understanding to review associated matters during the next two years 
in the context of the work of the Labour Council).  
5.14  Electronic commerce  
Chapter 14 addresses electronic commerce. It applies to measures adopted or maintained by 
a Party that affect trade by electronic means and not to  Government procurement, or information 
held or processed by or on behalf of a Party, or measures related to such information, including to 
its collection .121 The reservations in lists of non -conforming measures applicable to provisions on 
investment, cross -border trade in services, and trade in financial services are also applicable to 
certain provisions in Chapter 14.  
The Parties agree not to impose any customs duties on electronic transmissions, including 
content transmitted electronically, between a person of one Party and a person of another Party 
(Article 14.3). A Party shall nevertheless not be precluded from imposing internal taxes, fees or 
other charges on content transmitted electronically in a manner that is consistent with the 
Agreement.  
Non-discriminatory treatment shall also be granted by each Party to digital products122 
created, produced, published, contracted for, commissioned or f irst made available on commercial 
terms in the territory of another Party, or to digital products of which the author, performer, 
producer, developer or owner is a person of another Party (Article 14.4). In case of inconsistency 
between the provisions on e lectronic commerce and Chapter 18 on intellectual property, the 
provisions of Chapter 18 apply. The grant of subsidies by a Party as well as broadcasting activities 
are carved out from the application of non -discriminatory treatment for digital products.  
The Agreement contains guidelines for each Party's legal framework for domestic electronic 
transactions; electronic authentication and electronic signatures; online consumer protection; and 
personal information protection (Articles 14.5 through 14.8).  
Best endeavour provisions cover paperless trading; access to and use of the internet for 
electronic commerce; and internet interconnection charge sharing (Articles 14.9, 14.10, and 14.12).  
The Parties agree to allow the cross -border transfer of information by  electronic means when 
it is for the conduct of business of a covered person, though this does not prevent measures 
inconsistent with this achieve a legitimate public policy objective, consistent with certain conditions  
(Article 14.11). The  Parties also ag ree not to require a covered person to use or locate computing 
facilities in that Party's territory as a condition for conducting business in that territory, though this 
does not prevent measures inconsistent with  this to achieve a legitimate public policy  objective, 
 
121 Measures affecting the supply of a service delivered or performed electronically are subject to the  
obligations in the relevant provisions of Chapters 9 (investment), 10 (cross -border trade in services), and 11 
(financial services), including the exceptions or non -conforming measures applicable to these obligations.  
122 For the purpose of the Agreement, the term "digital product" means a computer programme, text, 
video, image, sound recording or other product that is digitally encoded, produced for commercial sale or 
distribution, and that can be transmitted electronically.  WT/REG395/1  
 
- 78 - 
 
  consistent with certain conditions (Article 14.13).] Each Party shall also adopt or maintain measures 
regarding certain forms of unsolicited commercial electronic messages (Article 14.14).  
Cooperation provisions cover assistance for SMEs; exch ange of information and experience 
on regulations, policies, enforcement and compliance regarding electronic commerce; exchange of 
information on consumer access to products and services offered online among the Parties; 
participation in regional and multi lateral fora to promote the development of electronic commerce; 
and encouragement of the development by the private sector of methods of self -regulation that 
foster electronic commerce, as well as on cybersecurity matters (Articles 14.15 and 14.16).  
No Par ty shall require the transfer of, or access to, the source code of mass -market software 
owned by a person of another Party, as a condition for the import, distribution, sale or use of such 
software, or of products containing such software123, in its territo ry. Certain conditionalities may be 
maintained by Parties in the application of this principle. Moreover, the disciplines on source code 
shall not affect requirements for patent applications or grants, subject to safeguards against 
unauthorised disclosure under the law or practice of a Party (Article 14.17).  
With respect to existing measures and during a transitional period of 2 years after the entry 
into force of the Agreement for it, Viet Nam shall not be subject to dispute settlement under Chapter 
28 reg arding its obligations on the non -discriminatory treatment of digital products, cross -border 
transfer of information by electronic means and the location of computing facilities.124 
5.15  Small and Medium -sized Enterprises (SMEs)  
Chapter 24 addresses Small and Medium -sized Enterprises (SMEs). Each Party commits to 
establish or maintain its own publicly accessible website containing information regarding the 
Agreement. A Committee on SMEs is established (Article 24.2) to, inter alia , identify ways to assist 
SMEs of the Parties to take advantage of the commercial opportunities under the Agreement and to 
exchange and discuss each Party's experiences and best practices in supporting and assisting SME 
exporters.  
The provisions under Cha pter 24 shall not be subject to dispute settlement under Chapter 28.  
5.16  Other  
5.16.1   Cooperation and capacity  building  
Chapter 21 covers cooperation and capacity building including in agricultural, industrial and 
services sectors; for the promotion of education, cul ture and gender equality; and disaster risk 
management.  
Each Party shall designate and notify a contact point on matters relating to the coordination 
of cooperation and capacity building activities. The Agreement also establishes a Committee on 
Cooperatio n and Capacity Building to, inter alia , facilitate the exchange of information between the 
Parties and discuss and consider issues or proposals for future cooperation and capacity building 
activities. The Parties shall work to provide the appropriate finan cial or in -kind resources for 
cooperation and capacity building activities under Chapter 21 , subject to the availability of resources 
and the comparative capabilities.   
 
123 Limited to mass -market software or products containing such software and not used for critical 
infrastructure.  
124 The first two of these transitional measures also apply to Malaysia for which the Agreement is not in 
force. Side letters exchanged with Austr alia, Canada, Japan, Mexico New  Zealand and Singapore agree to 
continue consultations on cooperation for the implementation of the Cyber Security Law of Viet Nam or related 
legislation concerning cyber security with a view to ensuring consistency with the Agreement. Viet Nam's 
partners agree to refrain from seeking recourse to Chapter 28 (dispute settlement) for measures adopted or 
maintained pursuant to Viet Nam's laws concerning cyber security, which are in violation of its obligations 
under Article 14.11  (cross -border transfer of information by electronic means) and Article 14.13 (location of 
computing facilities) for a period of five years after the date of entry into force of the Agreement for Viet Nam.  WT/REG395/1  
 
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The provisions under Chapter 21 shall not be subject to dispute settlement under 
Chapte r 28. 
5.16.2   Competitive and business facilitation  
Chapter 22 on competitiveness and business facilitation establishes a Committee on 
Competitiveness and Business Facilitation (CCBF), composed of Government representatives of each 
Party, to, inter alia , discuss e ffective approaches and develop information sharing activities to 
support efforts to establish a competitive environment that is conducive to the establishment of 
businesses, facilitate trade and investment between the Parties, and promote economic integra tion 
and development within the free -trade area; and explore ways to take advantage of the trade and 
investment opportunities that the Agreement creates. The CCBF shall also explore ways in which the 
Agreement may be implemented so as to promote the develo pment and strengthening of supply 
chains in order to integrate production, facilitate trade and reduce the costs of doing business within 
the free trade area. It may develop recommendations and explore best practices. A review of the 
extent to which the Ag reement has facilitated the development, strengthening and operation of 
supply chains in the free trade area shall take place during the fourth year after the date of entry 
into force of the Agreement. Moreover, the Committee shall establish mechanisms  appropriate for 
providing continuing opportunities for interested persons of the Parties to provide input on matters 
relevant to enhancing competitiveness and business facilitation.  
The provisions under Chapter 22 shall not be subject to dispute settlement un der 
Chapter  28. 
5.16.3   Development  
Chapter 23 addresses development. Besides general provisions, it encourages the Parties to 
cooperate in maximising the use of the opportunities created by the Agreement. It also contains 
encouragements and guidelines for Parties to take measures, including cooperative activities, aiming 
at enhancing broad -based economic growth, as well as the ability of women to fully access and 
benefit from the opportunities created by the Agreement; and promoting the development of 
educa tion, science and technology, research and innovation. It also lists areas for possible joint 
development activities.  
The Agreement establishes a Committee on Development, which shall, inter alia , facilitate 
the exchange of information on Parties' experien ces regarding the formulation and implementation 
of national policies intended to derive the greatest possible benefits from the Agreement; discuss 
proposals for future joint development activities in support of development policies related to trade 
and in vestment; and consider issues associated with the implementation and operation of 
Chapter  23.  
In the event of any inconsistency between Chapter 23 and another Chapter of the 
Agreement, the other Chapters shall prevail to the extent of the inconsistency.  
The provisions under Chapter 23 shall not be subject to dispute settlement under 
Chapter  28. 
5.16.4   Regulatory coherence125 
Chapter 25 on regulatory coherence mandates each Party to determine, no later than one 
year after the date of entry into force of the Agreeme nt and make publicly available the scope of its 
covered regulatory measures (Article 25.3 and 25.9). The Parties indicate that they have been 
progressively making notifications under this Article and providing links to the relevant websites 
where the infor mation is published.  
 
125 For the purposes of Chapter 25, the term "regula tory coherence" refers to the use of good regulatory 
practices in the process of planning, designing, issuing, implementing and reviewing regulatory measures in 
order to facilitate achievement of domestic policy objectives, and in efforts across government s to enhance 
regulatory cooperation in order to further those objectives and promote international trade and investment, 
economic growth and employment.  WT/REG395/1  
 
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The Chapter invites Parties to develop processes or mechanisms to facilitate effective 
interagency coordination and review of proposed covered regulatory measures (Article 25.4). Each 
Party should also encourage the relevant regulator y agencies to conduct regulatory impact 
assessments when developing proposed covered regulatory measures that exceed a threshold of 
economic impact, or other regulatory impact, where appropriate, as established by the Party. 
Article  25.5 governs implementa tion of core good regulatory practices.  
The Agreement establishes a Committee on Regulatory Coherence (CRC) to, inter alia , 
consider issues associated with the implementation and operation of Chapter 25. Guidelines for 
cooperation between the Parties in or der to facilitate the implementation of Chapter 25 and 
requirements for notification of implementation with respect to initial notifications, as well as 
subsequent notifications, are also provided.  
In the event of any inconsistency between Chapter 25 and a nother Chapter of the 
Agreement, the other Chapter shall prevail to the extent of the inconsistency (Article 25.10).  
The provisions under Chapter 25 shall not be subject to dispute settlement under 
Chapter  28. 
5.16.5   Anti-corruption  
The provisions on anti -corrupt ion in Section C of Chapter 26 address measures to eliminate 
bribery and corruption on any matter covered by the Agreement.  
Each Party shall ratify or accede to the United Nations Convention against Corruption 
(UNCAC, 2003). With respect to the relationshi p between Section C of Chapter 26 to other 
agreements, Article 26.11 clarifies, that nothing in the Agreement shall affect the Parties' rights and 
obligations under UNCAC, the United Nations Convention against Transnational Organized Crime 
(New York, 2000) , the Convention on Combating Bribery of Foreign Public Officials in International 
Business Transactions (Paris, 1997); or the Inter -American Convention Against Corruption (Caracas, 
1996).  
The Agreement addresses measures to combat corruption (Article 26.7), the Parties' 
commitments to promote integrity among public officials (Article 26.8), applying and enforcing anti -
corruption laws (Article 26.7). Each Party also agrees to take appropriate measures to promote the 
active participation of indi viduals and groups outside the public sector, such as enterprises, civil 
society, non -governmental organisations and community -based organisations, in the prevention of 
and the fight against corruption in matters affecting international trade or investment . The Parties 
also commit to raise public awareness regarding the existence, causes and gravity of, and the threat 
posed by, corruption (Article 26.10).  
The provisions under Section C of Chapter 26 shall be subject to dispute settlement under 
Chapter 28, e xcept for matters under Article 26.9 (application and enforcement of anti -corruption 
laws). The provisions on consultations (Article 28.5) are adjusted with respect to anti -corruption 
matters notably allowing Parties not involved in the consultations to jo in in through a request to the 
consulting Parties (Article 26.12).  WT/REG395/1  
 
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  ANNEX 1  
SIDE LETTERS BETWEEN THE PARTIES  
Parties  Topic  Refers to  Reference 
to DS  
ALL Note on Interpretation of "In Like 
Circumstances " Chapter 9  No 
Bilateral side letters  
AUS-CAN Canadian Cultural Industries  Annex II  No 
AUS-CAN Letter to roll -over TPP side letters   No 
AUS-CAN Australian Dairy and Food Processing  Chapters 7 & 8  No 
AUS-CAN Distinctive Products/Trademarks: Canadian 
Whisky and Rye  Chapter 18  No 
AUS-CAN Australian Wines and Distilled Spirits  Chapters 2 & 17  No 
AUS-CAN Customs duties on Australian beef  Chapter 2  Yes 
AUS-CAN Automotive rules of origin  Chapter 3  Yes 
AUS-JPN Rice Chapter 2 (TRQ)  Yes 
AUS-MEX Distinctive Products  Chapter 18  No 
AUS-MEX Termination of Investment Promotion and 
Protection Agreement  Chapter 9  No 
AUS-NZL ISDS, Trade Remedies and Transport Services  All  
Chapters 6 & 9, and Annex IV  Yes 
AUS-VNM Art. 18.53  Chapter 18  No 
AUS-VNM Letter to roll -over TPP bilateral agreements   No 
AUS-VNM Termination  of Investment Ag reement  Chapter 9  No 
AUS-VNM FDI in airline industry  Annex I  No 
AUS-VNM Letter to roll -over TPP bilateral understandings   No 
AUS-VNM Online education  Chapters 10 & 21  No 
AUS-VNM Visa and work permit  Chapter 12  No 
AUS-VNM Cyber Security Law of Viet Nam  Chapter 14  Yes 
AUS-VNM Disputes  related to the Labour Chapter of the 
TPP Chapter 19  Yes 
AUS-VNM Electronic Payment Services  Chapter 11  & Annex 11 -B No 
AUS-VNM Art. 18.47  Chapter 18  Yes 
CAN-JPN Automotive  Standards  Chapter 8  * 
CAN-JPN Automotive  Chapter 2 , Ap. D -2, Chapter 8  Yes 
CAN-JPN Canadian Cultural Industries  Annex II  No 
CAN-JPN Forestry Products  Chapters 2  & 6 No 
    
CAN-MEX Canadian Cultural Industries  Annex II  No 
CAN-MEX Geographical Indications  Chapter 18  No 
CAN-MEX Cooperation  Chapter 18  No 
CAN-NZL Canadian Cultural Industries  Annex II  No 
CAN-NZL Distinctive Products  Chapter 18  No 
CAN-NZL Wines and Distilled Spirits  Chapters 2  & 17 No 
CAN-SGP Canadian Cultural Industries  Annex II  No 
CAN-VNM Canadian Cultural Industries  Annex II  No 
CAN-VNM Distinctive Products  Chapter 18  No 
CAN-VNM Electronic Payment Services  Chapter 11  & Annex 11 -B Yes 
CAN-VNM E-Commerce  Chapter 14  Yes 
CAN-VNM Labour  Chapter 19  Yes 
CAN-VNM Agricultural Chemical Products  Chapter 18  No 
CAN-VNM Patent Linkage  Chapter 18  No 
CAN-VNM Trademarks  Chapters 18  & 21 No 
    
JPN-VNM Agricultural Chemical Products  Chapter 18  Yes 
JPN-VNM Marketing of Pharmaceuticals  Chapter 18  No 
JPN-VNM E-commerce  Chapter 14  Yes 
JPN-VNM Labour  Chapter 19  Yes 
JPN-VNM Electronic Payment Services  Chapter 11  & Annex 11 -B Yes 
MEX-VNM Textiles, TPLs  Chapters 2, 3, 4, 28 Yes 
MEX-VNM Monitoring of Textiles Enterprises  Chapter 4  Yes 
MEX-VNM Electronic Payment Services  Chapter 11  & Annex 11 -B No 
MEX-VNM E-commerce and cyber security  Chapter 14  Yes 
MEX-VNM Chemical products  Chapter 18  Yes WT/REG395/1  
 
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  Parties  Topic  Refers to  Reference 
to DS  
MEX-VNM Marketing of Pharmaceuticals  Chapter 18  No 
MEX-VNM Labour  Chapter 19  Yes 
MEX-VNM Achieving Market economy  … No 
NZL-MEX Treatment of Certain Products  Chapter 18  No 
NZL-SGP Relationship between CPTPP and Other 
Agreements  All No 
NZL-VNM Agricultural Chemical Test Data Chapter 18  No 
NZL-VNM Cyber Security  Chapter 14  Yes 
NZL-VNM Electronic Payment Services  Chapter 11  & Annex 11 -B Yes 
NZL-VNM Labour  Chapter 19  Yes 
NZL-VNM Pharmaceutical Marketing  Chapter 18  No 
NZL-VNM ISDS Chapter 11  & Annex 11 -B ISDS 
NZL-VNM Relationship between CPTPP and AANZFTA  All No 
SGP-VNM Cyber Security  Chapter 14  Yes 
SGP-VNM Electronic Payment Services  Chapter 11 & Annex 11 -B Yes 
SGP-VNM Labour  Chapter 19  Yes 
SGP-VNM Art. 18.53  Chapter 18  No 
SGP-VNM Art. 18.47  Chapter 18  Yes 
… Not specified . 
* The letter foresaw the development of an enforceable dispute settlement mechanism ; this was later 
agreed in the November 2018 "Auto" side letter, also presented in this table.  
Note:  In italics, side letters  agreed under the TPP  and rolled over. 
Source:  WTO Secretariat on the basis of information  from the Parties .  
 
  WT/REG395/1  
 
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  ANNEX 2  
TARIFF LIBERALIZATION (% OF DUTY -FREE LINES) UNDER THE AGREEMENT, EXISTING RTAS 
AND MFN RATES  
 The table below presents the percentage of duty -free tariff lines applied by each Party in terms 
of the applied MFN rate, the Agreement's preferential tariff as well as the preferential tariff applied 
under other existing RTAs between the Parties.1 This information is depicted in Chart 3.1 and 
analysed in paragraphs 3.24.  -3.26.    above ). 
 In 2018, between 31.4% and 72.3% of the Parties' MFN applied tariffs were duty free; 
Singapore maintained MFN applied tariffs on only six tariff lines. Upon the Agreement's entry  into 
force over half of the Parties liberalized over 90% of their tariff lines, and at the end of 
implementation, two Parties (New Zealand and Singapore) will have removed tariffs on all lines for 
their partners. A comparison with other overlapping RTAs s hows that once the Agreement is fully 
implemented, tariff liberalization by Japan, Mexico and Viet Nam is expected to be greater than 
under their respective overlapping RTAs.  
Table A2. 1 Tariff liberalization (% of duty -free lines ) under the agreement, existing RTAs 
and MFN rates  
Name  MFN &  
RTAs  Year  AUS CAN JPN MEX NZL SGP VNM  Overall 
Averagea 
AUS MFN 2018  47.6 47.6 47.6 47.6 47.6 47.6 2.8 (5.3)  
CPTPP  EIF  93.3 93.2 93.2 93.2 93.2 93.2 0.2 (3.6)  
END  6.5 6.5 6.5 6.5 6.5 6.5 - 
RD  0.2 0.2 0.2 0.2 0.2 0.2 - 
EOI year  
(Years)   2021 (4)  2021 (4)  2021 (4)  2021 (4)  2021 (4)  2021 (4)   
RTA 2018  - 90.6 - 96.9 96.9 96.9  
END  - 9.3 - 3.1 3.1 3.1  
RD  - 0.1 - - - -  
EOI year  
(Years)   - 2022 (8) - 2020 (11) 2020 
(11) 2020 
(11)  
CAN MFN 2018 72.3  72.3 72.3 72.3 72.3 72.3 5.4 (20.0)  
CPTPP  EIF 94.0  94.0 94.0 94.0 94.0 94.0 3.3 (60.0)  
END 4.6  4.6 4.6 4.6 4.6 4.6 2.8 
RD 1.3  1.3 1.3 1.3 1.3 1.3 (228.3)  
EOI year  
(Years)  2029 
(12)  2029 
(12) 2029 
(12) 2029 (12)  2029 
(12) 2029 
(12)  
RTA 2018 -  - NA - - -  
END -  - NA - - -  
RD -  - NA - - -  
EOI year  
(Years)  -  - NA - - -  
JPN MFN 2015 40.3 40.3  40.3 40.3 40.3 40.3 4.8 (8.2)  
CPTPP  EIF 84.2 84.2  84.3 84.2 84.3 84.3 2.1  
(15.5 -
15.6)  
END 11.8 11.8  11.6 11.7 11.6 11.6 0.7 
RD 4.1 4.1  4.1 4.1 4.1 4.1 (24.9 -
25.1)  
EOI year  
(Years)  2038 
(21) 2038 (21)   2038 
(21) 2038 (21)  2038 
(21) 2038 
(21)  
RTA 2018 83.1 -  87.0 - 87.8 84.0  
END 7.4 -   - 0.0 5.3  
RD 9.5 -  13.0 - 12.2 10.7  
EOI year  
(Years)  2029 
(15) -  2015 
(11) - 2023  
(15) 2024 
(16)  
 
1 On the basis of available data for 16 such bilateral relationships, out of a total of 34; see the lis t at the 
end of the table.  WT/REG395/1  
 
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  Name  MFN &  
RTAs  Year  AUS CAN JPN MEX NZL SGP VNM  Overall 
Averagea 
MEXd MFN 2018 57.2 57.2 57.2  57.2 57.2 57.2 5.7 (13.3)  
CPTPP  EIF 75.5 75.5 75.3  75.5 75.5 75.5 3.3 (13.5)  
END 23.9 23.9 23.9  23.9 23.9 23.9 0.2 
RD 0.6 0.6 0.8  0.6 0.6 0.6 (25.1 JPN; 
33.9 
Others)  
EOI year  
(Years)  2033 
(16) 2033 
(16) 2033 
(16)  2033 
(16) 2033 
(16) 2034d 
(16)  
RTA 2018 - .. 94.1  - - -  
END - ..   - - -  
RD - .. 5.9  - - -  
EOI year  
Years)  - .. 2015 
(11)  - - -  
NZL MFN 2018 59.1 59.1 59.1 59.1  59.1 59.1 2.3 (5.7)  
CPTPP  EIF 94.6 94.6 94.6 94.6  94.6 94.6 0.3 (5.9)  
END 5.4 5.4 5.4 5.4  5.4 5.4 - 
RD - - - -  - - - 
EOI year  
(Years)  2024 
(7) 2024 (7)  2024 (7)  2024 (7)   2024 (7)  2024 (7)   
RTA 2018 96.7 - - -  100.0  96.7  
END 3.3 - - -   3.3  
RD - - - -  - -  
EOI year  
(Years)  2020 
(11) - - -  2010 
(10) 2020 
(11)  
SGP MFN 2018 99.9 99.9 99.9 99.9 99.9  99.9 0.0b 
CPTPP  EIF 100.0  100.0  100.0  100.0  100.0   100.0  - 
RTA 2018 100.0  - 100.0  - 100.0   .. - 
EOI year  
(Years)  2010 
(0) - 2008 
(0) - 2006 
(0)  .. - 
VNMc,d MFN 2018 31.4 31.4 31.4 31.4 31.4 31.4  10.5 
(15.4)  
CPTPP  EIF 35.4 35.4 35.4 35.4 35.4 35.4  MEX: 5.7 
(16.9)  
Others: 
4.4 (13.3)  
END 31.5 31.5 31.5 31.5 31.5 31.5  0.4 
RD 1.7 1.7 1.7 1.7 1.7 1.7  (22.5)  
EOI year  
(Years)  2038 
(20) 2038 (20)  2038 
(20) 2039d 
(21) 2038 (20)  2038 
(20)   
RTA 2019 87.1 - 75.7 - 87.1 ..   
END 4.7 - 15.9 - 4.7 ..   
RD 8.2 - 8.4 - 8.2 ..   
EOI year  
(Years)  2022 
(13) - 2025 
(18) - 2022 (13)  ..   
a  In parenthesis, average of dutiable lines only.  
b Refers to six tariff lines with only specific duties.  
c  While the CPTPP only entered into force for Viet Nam in 2019, the 2018 MFN rates were used instead 
due to unavailability of 2019 rates.  
d Liberalization of trade between Mexico and Viet Nam is one y ear behind due to the non -application 
of the catch -up mechanism.  
EIF % of duty -free lines as of Entry into Force.  
END  % of duty -free lines at the End of implementation period.  
EOI End of implementation year - end of the transition period.  
RD Remain dutiab le ("0.0" means there is at least one remaining dutiable rate which is <0.1%) . 
.. Not available.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of average 
rates (applied by Australia, Canada and Japan) , specific rates are excluded and the ad valorem  parts 
of alternate rates are included. When more than one overlapping RTA could be considered, the RTA 
providing the best treatment was used, provided data was available.  WT/REG395/1  
 
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  The overlapping RTAs included are:  
AUS/JPN:      Japan - Australia  
AUS/NZL:     ANZCERTA  
AUS/SGP, AUS/VNM, NZL/VNM:  AANZFTA  
JPN/MEX:      Japan - Mexico  
JPN-SGP:      ASEAN - Japan  
JPN/VNM:     Japan - Viet Nam  
NZL/SGP:      New Zealand - Singapore  
Source:  Secretariat's  calculations based on data provided by Parties and the WTO RTA database.  
 
__________  
 