PDF our Govemments, to enter upon the entiy into

3

^{March 2018}

The Honourable Ildefonso Guajardo Villarreal Secretary of Economy

Mexico

Dear Secrctary:

In connection with the signing on 8 March 2018 of the Comprehensive and Progressive Agreernent for Trans-Pacific Partnership (hereinafler referred to as the “Agreernent”), ¡ have the honour to confirrn the following understanding reached between the Governrnent of Malaysia (hercinafter refelTed to as

“Malaysia”) and the Governrnent of the United Mexican States (hereinafler referred to as “Mcxico”), on Chapter 17 (State-Owned Enteiprises and Designated Monopolies) of the Agreernent, as follows:

Mexico wiIl refrain frorn seeking recourse to Chapter 28 (Dispute Settlement) of the Agreernent, with respect to the cornrnitment of Malaysia regarding PETRONAS as contained in Anncx IV ^— Malaysia— 3— Scope ofNon-ConforrningActivities, subparagraphs (a) through (1), fora period of(5) five years afterthc date of entiy into force of theAgreernent for Malaysia.

2. After this period, both countries wiII conduct consuLtations with a vicw to deciding on actions to be taken afler such period. This is without prejudice to the rights and obligations of both Pailies under Chapter 28 (Dispute Settlernent) of Ihe Agrcernent.

1 have the furthcr honour to propose that this Ietter and your ¡etter of coníirrnation in reply, hoth equally authentic in the English and the Spanish languages, shall constitute an understanding bctween our Govemments, to enter into effectupon the entiy into force of the Agreernent between Malaysia and Mex ico.

Sincerely,

Mustapa Mohamed

Minister of international Trade and Industry Malaysia