Neither Party shall injure a domestic industry19 of the other Party through the use of non-trade assistance that it provides, directly or indirectly, to any of its state-owned enterprises that is a covered investment in the territory of that other Party in circumstances where: a) non-commercial aid is given in connection with the production and sale of a commodity by the state enterprise in the territory of the other Party; and. For the purposes of Article 17.6.1 and Article 17.6.2 (Non-commercial assistance), adverse effects arise if the effect of the non-commercial assistance is: a) that the production and sale of a good by a State-owned enterprise of a Party that has received non-trade assistance displaces or prevents from the Party's market imports of a like good of another Party or sales of a like good produced by an enterprise that it is a covered investment in the territory of the Party; Significant change in relative market shares' would include any of the following situations:. a) there is a significant increase in the market share of the goods or services of the Party's state enterprise;
Injury
For the purposes of Article 17.6.1(b) and Article 17.6.2(b) (Non-Commercial Assistance), the initial capitalization of a state-owned enterprise, or the acquisition by a Party of a controlling interest in ' an enterprise, which is mainly involved in the provision of services within the territory of the Party, will be deemed not to cause adverse consequences. It must be demonstrated that the goods produced and sold by the covered investment, through the consequences24 of the non-commercial assistance, cause injury within the meaning of this Article. The proof of a causal link between the goods produced and sold by the covered investment and the injury to the domestic industry will be based on an examination of all relevant evidence.
All known factors, except goods produced by the covered investment, which at the same time injure the domestic industry, shall be examined, and the injury caused by these other factors shall not be attributed to goods produced and sold by the covered investment which received non-commercial aid. Factors that may be relevant in this regard include, but are not limited to, the volume and prices of other similar goods in the relevant market, contraction in demand or changes in consumption patterns and developments in technology, and the export performance and productivity of the domestic industry. A finding of a threat of material harm must be based on facts and not merely on conjecture, conjecture, or remote possibility, and must be treated with particular care.
A change in circumstances that would result in a situation in which the non-commercial aid would cause damage to the covered investment must be clearly foreseen and imminent. When deciding on the existence of a risk of material damage, it is necessary to take into account the relevant factors25 and whether the totality of the considered factors leads to the conclusion that the continued availability of the goods produced by the covered investment is inevitable and that, unless a protective measure is taken, material damage would occur.
Party-Specific Annexes
Each Party shall promptly notify the other Parties or make publicly available on an official website the determination of a monopoly or the extension of the scope of an existing monopoly and the conditions of its determination. 30. Upon the written request of another Party, a Party shall promptly provide the following information regarding a state-owned enterprise or a government monopoly, provided that the request includes an explanation of how the entity's activities may affect trade or investment between the Parties: a) the percentage of shares that the party, its state-owned enterprises or designated monopolies cumulatively own, and the percentage of votes that they cumulatively own in the unit; Upon the written request of another Party, a Party shall promptly provide, in writing, information regarding any policy or program it has adopted or maintains that provides for non-commercial assistance, provided that the request includes an explanation of how the policy or the program affects. or may affect trade or investment between the Parties.
The Party responding to the request shall ensure that the response it submits contains the following information: a) the form of non-commercial assistance provided under the policy or program, such as a grant or loan;. 30 Paragraphs 2, 3 and 4 do not apply to Vietnam in relation to entities listed in the entry in Annex IV – Vietnam – 9 that engage in non-compliant activities described in that entry. If any important point referred to in paragraph 5 has not been addressed in the written response, an explanation shall be provided in the written response itself.
The Parties acknowledge that the provision of information pursuant to paragraphs 5 and 7 shall not affect the legal status of the assistance requested pursuant to paragraph 4 or the effects of such assistance under this Agreement. When a Party provides written information as required under this Article and notifies the requesting Party that it considers the information confidential, the requesting Party may not disclose the information without the prior consent of the Party that provided the information.
Technical Cooperation
Committee on State-Owned Enterprises and Designated Monopolies 31
Exceptions
The Committee shall meet within one year of the date of entry into force of this Agreement, and at least annually thereafter, unless the Parties agree otherwise. 17.6.1(b) (Non-commercial Assistance) or Article 17.6.2(b), or under Article 17.6.1(c) or Article 17.6.2(c) where the Party in which the financial service is provided requires a local presence in order to provide those services, if that provision of financial services:33. a) support exports and imports, provided these services are:. i) not intended to displace commercial financing; or. ii) offered on terms that are no more favorable than those obtainable for comparable financial services in the commercial market;. 33 For the purposes of this paragraph, in cases where the country in which the financial service is provided requires a local presence to provide those services, the provision of the financial services identified in this paragraph by an enterprise that is a covered investment was deemed not to give rise to adverse consequences.
34 When a Party invokes this exception during consultations under Article 28.5 (Consultations), the consulting Parties must exchange and discuss available evidence regarding the annual income of the state enterprise or the designated monopoly obtained from the commercial activities during the.
Further Negotiations
Process for Developing Information
On the Effective Date of this Agreement, the limit referred to in Article 17.13.5 (Exclusions) shall be 200 million Special Drawing Rights (SDR). If a panel is established pursuant to Chapter 28 (Dispute Settlement) to consider a complaint arising under Article 17.4 (Non-Discriminatory Treatment and Commercial Considerations) or Article 17.6 (Non-Commercial Assistance), the Parties to the dispute may exchange questions and answers with writing, as provided in paragraphs 2, 3 and 4, to obtain information relevant to the complaint that is not otherwise available. The responding party will provide answers to the questions to the inquiring party within 30 days from the date of receipt of the questions.
The interrogating Party may provide any written follow-up questions to the answering Party within 15 days from the date on which it received the answers to the initial questions. The responding Party shall provide its answers to the follow-up questions to the interrogating Party within 30 days from the date on which it received the follow-up questions. In determining whether a disputing Party has failed to cooperate in the information gathering process, the panel will consider the reasonableness of the questions and the efforts made by the responding Party to respond to the questions in a cooperative and timely manner. , Take into account.
Within five years from the date of entry into force of this Agreement, the Parties shall additionally negotiate to extend the application of: a) the disciplines of this Chapter to the activities of state-owned enterprises owned or controlled by the sub-central level of government and certain monopolies determined by the sub-central level of government if such activities were listed in Schedule 17-D (applicability to sub-central state-owned enterprises and certain monopolies); and (b) the rules in Article 17.6 (Non-Commercial Assistance) and Article. 17.7 (Harmful effects) to address the effects caused by the provision of services by a state-owned company on the non-contracting market. According to Article 17.9.2 (Appendices for Individual Parties), the following obligations shall not apply to a state-owned enterprise owned or controlled by a sub-central level government and a specified monopoly determined by a sub-central level government:36. i) Article 17.4.1(a) and (b) (Non-discriminatory treatment and commercial aspects);. ii) Article 17.4.2 (Non-discriminatory treatment and commercial aspects);. iii) Article 17.6.1(a) (Non-Commercial Assistance) and Article 17.6.2(a) (Non-Commercial Assistance) in relation to the production and sale of goods in competition with similar goods produced and sold by the Covered Investment in the territory of Australia;. i) Article 17.4.1(a) and (b) (Non-discriminatory treatment and commercial aspects);. ii) Article 17.4.1(c)(i) (Non-discriminatory treatment and commercial aspects);). iii) Article 17.4.2 (Non-discriminatory treatment and commercial aspects);. iv) Article 17.5.2 (Courts and Administrative Bodies) in relation to administrative regulatory bodies established or maintained by the sub-central level of government;.
36 For the purposes of this Schedule "sub-central level of government" means the regional level of government and the local level of government of a Party. v) Section 17.6.1(a) (Non-Commercial Assistance) and Section 17.6.2(a) (Non-Commercial Assistance), in relation to the production and sale of a good in competition with a similar good that produces and sold through a hedged investment;. ix) Section 17.10.4 (Transparency), in relation to a policy or program adopted or maintained by a sub-central level of government. i) Article 17.4.1(a) and (b) (Non-discriminatory treatment and commercial considerations);. ii) Article 17.4.1(c)(i) (Non-discriminatory treatment and commercial considerations);. iii) Article 17.4.2 (Non-discriminatory treatment and commercial considerations);. iv) Section 17.6.1(a) (Non-Commercial Assistance) and Section 17.6.2(a) (Non-Commercial Assistance), in relation to the production and sale of a good in competition with a similar good that produces and sold through a covered investment in the territory of Chile;. i) Article 17.4.1 (Non-discriminatory treatment and commercial considerations);. ii) Article 17.4.2 (Non-discriminatory treatment and commercial considerations);. iii) Article 17.6.1(a) (Non-Commercial Assistance) and Article 17.6.2(a) (Non-Commercial Assistance) in relation to the production and sale of a good:.
SINGAPORE
Singapore is deemed to comply with Article 17.10.1 (Transparency) in respect of any SOE owned or controlled by a Singapore sovereign wealth fund if:.
MALAYSIA
