WORLD TRADE
ORGANIZATIONWT/REG140/4
22 October 2003
(03-5577)
Committee on Regional Trade Agreements Original:  English
AGREEMENT BETWEEN JAPAN AND SINGAPORE
FOR A NEW-AGE ECONOMIC PARTNERSHIP
SERVICES ASPECTS
Communication from the Parties
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership And Dates Of Signature, Ratification And Entry Into Force
The Agreement between Japan and the Republic of Singapore for a New-Age Economic
Partnership, commonly known as the JSEPA, en tered into force on 30 November 2002.  The two
Governments announced their intention to negotiate an agreement in October 2000.  After completing
four rounds of formal negotiations and twelve rounds of informal ones, the Japanese Prime Minister
Junichiro Koizumi and the Singapore Prime Minister Goh Chok Tong signed the Agreement in
Singapore on 13 January 2002.
2. Type Of Agreement
The services chapter and attached annexes of the JSEPA provide for free trade and investment
in services between the Parties, in accordance with Article V of the General Agreement on Trade in
Services (GATS).  Article 1 specifically states that the objectives of this Agreement are, inter alia, ‘to
facilitate, promote, liberalise and provide a stable and predictable environment for economic activity
between the Parties through such means as… removing barriers to trade in services between theParties… (and) … easing the movement of business people including professionals…’
3. Scope
The JSEPA applies to measures by the Parties affecting trade in services.  No services sectors
are excluded a priori from the scope of the agreement other than services supplied in the exercise ofgovernmental authority.  The JSEPA adopts a positive list structure, and specific commitments cover
the four modes of supply.  The schedules listing Japan’s and Singapore’s specific commitments to
liberalise services trade, which expand substantially on those already made by both Parties under the
GATS, are attached to the services chapter of the JSEPA as Annex IVc.
4. Economic And Trade Data
In 2001, Singapore’s total services exports to Japan were S$3,665,900,000.  Japan’s total
services exports to Singapore in the same period were 4,340,000,000JPY.
Japan and Singapore are both still developing their collection methodology for data on
services trade.  Historical information on services trade is presently very limited, although the
attached tables detail services imports and exports between both countries for the period specified.  AsWT/REG140/4
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statistics are available only for the period 1999 to 2001, they cannot be relied upon to paint an
accurate or complete picture of services trade prior to and post entry into force of the JSEPA.
II. PROVISIONS AFFECTING TRADE IN SERVICES
1. Provisions Of The Agreement Relating To The Elimination Of Article XVII Inconsistent
Measures
Article 59 sets out general provisions governing Market Access in those services covered by
each Party’s schedule of commitments, and measures which a Party shall not maintain or adopt in
sectors where market access commitments are undertaken.  Article 60 on National Treatment requires
that each Party accord to services and service suppliers of the other Party treatment no less favourable
than that accorded to its own like services and service suppliers, subject to the conditions andqualifications set out in its schedule of commitments.
Articles 59 and 60 are consistent with the corresponding Articles of the GATS on Market
Access (Article XVI) and National Treatment (Article XVII).
Article 61 allows the Parties to negotiate additional commitments not subject to scheduling
under Articles 59 and 60, such as those relating to qualifications, standards or licensing matters, and
add these to their respective schedules of commitments.
1.1 Treatment Of Services And Services Suppliers From Third CountriesThe JSEPA liberalises trade in services between the Parties.  It does not address the treatment
of services and service suppliers from third countries, except in respect of Article 62 which provides
for service suppliers of a non-Party to benefit from the JSEPA if they engage in ‘substantive’ business
operations in the territory of either Party.
With the exception of the circumstances covered by Article 62, services and service suppliers
of third countries are not directly affected by the JSEPA.  As GATS signatories, Japan and Singapore
treat services and services suppliers from third countries in accordance with Article II, the other
general GATS provisions, and the Parties’ GATS schedules of specific commitments.  There has been
no need for negotiations under Article V:5 of the GATS.
2. Rules Of Origin
The JSEPA extends benefits to a ‘natural’ or ‘juridical’ person of the other Party and services
supplied by them.  The ‘supply of a service’ is defined to include the production, distribution,
marketing, sale and delivery of a service.
A ‘natural person of the other Party’ is defined to mean a person who resides in the territory
of that other Party or elsewhere and who under the law of that other Party:
(i) in respect of Japan, is a national of Japan; and
(ii) in respect of Singapore, is a national of Singapore or has the right of
permanent residence in Singapore.
A ‘juridical person of the other Party’ is defined to mean a juridical person which is either:WT/REG140/4
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(i) constituted or otherwise organised under the law of the other Party and, if it is
owned or controlled by natural persons of non-Parties or juridical persons
constituted or otherwise organised under the law of non-Parties, is engaged in
substantive business operations in the territory of either Party; or
(ii) in the case of the supply of a service through commercial presence, owned or
controlled by:
(A) natural person of the other Party; or
(B) juridical persons of the other Party identified under sub-paragraph (i)
above.
3. Standards/Recognition
Article 64 on domestic regulation incorporates the relevant provisions of GATS Article VI.
In sectors where specific commitments are undertaken, Parties agree that all measures of general
application are administered in a reasonable, objective and impartial manner.  In addition, Article 64
also adopts the GATS disciplines referred to in Article V.5, which apply to sectors where a Party has
undertaken specific commitments.
Article 93 provides a mechanism for mutual recognition of professional qualifications.  The
Parties have agreed that “a Party may recognise the education or experience obtained, requirements
met, or licences or certifications granted in the territory of the other Party of the purposes of
fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing orcertification of natural persons with professional qualifications”.
4. Safeguards
The services chapter of the JSEPA does not contain any specific provisions for safeguards.
Article 68 covers restrictions to safeguard the balance of payments.
6. Government Procurement
The government procurement obligations in th e JSEPA incorporate the disciplines of the
Agreement on Government Procurement (GPA).  Arti cle 101 of the JSEPA lowers the threshold value
above which government procurement would be subject to the GPA disciplines.  The threshold value
for goods and services (except construction services) was lowered to Special Drawing Rights (SDR)
100,000.  This is a SDR 30,000 reduction from both Ja pan’s and Singapore’s GPA threshold of SDR
130,000.
7. Sector-Specific Provisions
The JSEPA incorporates two annexes with specific provisions on financial services and
telecommunication services (Annexes IVA and IVB respectively).
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions And Reservations
Articles 4 and 69 sets out the exceptions to the JSEPA based on the relevant provisions of the
WTO Agreement including GATS Articles XIV bis and XIV.WT/REG140/4
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2. Accession
 This is not applicable to the JSEPA.
3. Dispute Settlement Procedures
Chapter 21 contains the provisions on Dispute Avoidance and Settlement.  Article 140 allows
a Party to request consultations for the purposes of avoiding disputes.  The other Party shall afford
adequate opportunity for consultations and shall reply promptly to the request and enter into
consultations in good faith. Article 141 stipulates that the Parties may agree at any time to good
offices, conciliation or mediation.
Article 142 allows a Party to request consultations for the purpose of settling disputes, if it
considers that any benefit accruing to it is being nullified or impaired, and Parties shall make everyeffort to reach a mutually satisfactory resolution through consultations. There are specific timelines
stipulated for the requested Party to enter into consultations.
Article 143 provides for the establishment of an ar bitral tribunal at the request of either Party
if Parties fail to resolve the dispute through consu ltations.  Each Party shall appoint an arbitrator, and
both Parties shall agree on a third arbitrator.  Arti cle 143 also makes provisions for the appointment of
the third arbitrator in the event that Parties are fail to agree.
The dispute settlement procedures also include detailed provisions as to the functions and
proceedings of arbitral tribunals, as well as the implementation of the tribunal’s rulings or findings.There are timeframes specified for each stage of the entire proceedings, so as to give a degree of
automaticity to the process.
Nothing in the chapter on dispute settlement and avoidance shall prejudice the rights of the
Parties to have recourse to dispute settlement procedures available under any other internationalagreement to which they are parties.
4. Relation With Other Trade Agreements
Article 6 provides that in the event of any inconsistency between the JSEPA and any other
agreement to which both Japan and Singapore are parties, both Parties shall immediately consult with
each other with a view to finding a mutually satisfactory solution, taking into consideration general
principles of international law.
5. Institutional Framework
No intergovernmental or supranational institutions were created to operate the JSEPA.  The
Ministry of Foreign Affairs of Japan and the Minist ry of Trade and Industry of Singapore are the two
primary governmental agencies responsible for the overall implementation and monitoring of theJSEPA.
IV. OTHER
1. Movement Of Natural Persons
Chapter 9 of the JSEPA on Movement of Natural Persons applies to measures affecting the
movement of natural persons of a Party who enter the territory of the other Party for business
purposes.  The Parties set out their specific commitments regarding natural persons in Annex VI.WT/REG140/4
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Natural persons covered in Annex VI shall be granted entry and stay in accordance with the terms and
conditions of the specific commitment.  These specific commitments apply only to sectors where
specific commitments are undertaken under Chapter 7 on Trade in Services and no specific exceptions
are made under Chapter 8 on Investment.
In addition, Chapter 9 does not prevent a Party “from applying measures to regulate the entry
of natural persons of the other Party into, or their temporary stay in, its territory, including those
measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons
across, its borders, provided that such measures are not applied in such a manner as to nullify or
impair the benefits accruing to either Party under the terms of a specific commitment.”
2. Transparency
According to Article 2 of the JSEPA, each Pa rty shall promptly make public, or otherwise
make publicly available, its laws, regulations, administrative procedures and administrative rulings
and judicial decisions of general application as well as international agreements which pertain to or
affect the operation of the JSEPA.
3. Confidential Information
Article 3 stipulates that nothing in the JSEPA shall be construed to require a Party to provide
confidential information, the disclosure of whic h would impede law enforcement, or otherwise be
contrary to the public interest, or which would prejudice legitimate commercial interests of particular
enterprises, public or private.  In addition, each Party shall, in accordance with its laws andregulations, maintain the confidentiality of inform ation provided in confidence by the other Party
pursuant to the JSEPA.
4. General
The JSEPA has gone beyond commitments of both countries under the WTO on liberalisation
of trade in goods and services, and investment.  The JSEPA also includes trade facilitation and
bilateral co-operation in key growth areas su ch as information and communication technology,
science and technology, financial services, tourism and human resources development, among others.WT/REG140/4
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TRADE DATA
Details of Singapore International Trade in Services
Exports, 1999-2001
(Value in S$ millions)
Period 1999 2000 2001
Transportation 18,116.7 20,501.9 20,540.2
Travel 8,598.0 8,968.6 8,217.1
Financial 2,017.0 2,397.0 2,117.1
Insurance 608.1 867.5 1,189.8
Business Services 12,552.3 14,136.5 16,911.8
Technical & Other Business-Related Services 2,537.8 3,125.7 3,500.0
Royalties 113.3 150.4 170.2
Cultural, Sports & Recreational Services 20.3 25.9 37.4
Government 148.9 168.4 180.0
Total 44,712.4 50,341.9 52,863.6
Imports, 1999-2001
(Value in S$ millions)
Period 1999 2000 2001
Transportation 18,303.0 21,538.9 21,583.6
Travel 6,563.4 7,838.3 10,041.5
Financial 545.7 687.8 642.1
Insurance 1,872.8 2,457.3 2,522.4
Business Services 3,624.8 4,569.0 5,661.8
Technical & Other Business-Related Services 2,924.8 3,113.9 3,604.8
Royalties 6,527.1 6,227.7 6,091.0
Cultural, Sports & Recreational Services 23.4 39.3 50.5
Government 197.2 198.5 247.1
Total 40,582.2 46,670.7 50,444.8
Details of Japan's International Trade in Services
Exports, 1999-2001
(Value in 100 million JPY)
1999 2000 2001
Services 69,354 74,621 78,341
Transportation 26,051 27,595 29,169
Sea Transport 17,030 18,113 19,949
Air Transport 8,999 9,451 9,194
Travel 3,909 3,637 4,020
Other Services 39,394 43,391 45,152
Communication Services 874 885 873
Construction Services 6,555 6,296 5,816
Insurance Services -84 186 -126
Financial Services 2,316 3,087 3,295
Computer and Information Services 1,427 1,691 1,714WT/REG140/4
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Royalties and Licence Fees 9,310 11,024 12,689
Other Business Services 17,947 19,088 19,721
Personal, Cultural and Recreational Services 276 125 143
Government Services n.i.e. 771 1,008 1,027
Imports, 1999-2001
(Value in 100 million JPY)
1999 2000 2001
Services 130,859 125,958 131,492
Transportation 34,777 37,834 39,335
Sea Transport 22,197 22,715 24,806
Air Transport 12,506 15,034 14,426
Travel 37,196 34,367 32,188
Other Services 58,886 53,758 59,969
Communication Services 1,604 1,239 1,300
Construction Services 4,928 4,313 4,638
Insurance Services 2,672 2,182 3,227
Financial Services 3,089 2,028 2,001
Computer and Information Services 3,366 3,307 3,204
Royalties and Licence Fees 11,213 11,863 13,490
Other Business Services 29,605 26,182 28,934
Personal, Cultural and Recreational Services 1,284 1,375 1,690
Government Services n.i.e. 1,126 1,268 1,485
Balance of payments, surveyed by Ministry of Finance Japan
International Trade in Services between Japan & Singapore
Japan’s Export Data, 1999-2001
(Value in 100 million JPY)
1999 2000 2001
Services 3,797 4,644 4,340
Transportation 1,359 1,604 1,684
Sea Transport 1,024 1,157 1,276
Air Transport 334 446 407
Travel 65 62 61
Other Services 2,373 2,979 2,595
Communication Services 19 20 12
Construction Services 459 274 220
Insurance Services 2 -13 -23
Financial Services 84 43 28
Computer and Information Services 200 291 268
Royalties and Licence Fees 252 324 323
Other Business Services 1,317 2,009 1,731
Personal, Cultural and Recreational Services 10 3 5
Government Services n.i.e. 31 28 30
Balance of payments, surveyed by Ministry of Finance JapanWT/REG140/4
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Singapore’s Export Data, 1999-2001
(Value in S$ millions)
Period 1999 2000 2001
Transportation 2,058.0 2,250.6 2,104.3
Travel n.a. n.a. n.a.
Financial 75.2 98.2 72.9
Insurance 63.6 86.0 118.1
Business Services 957.7 1,182.2 1,109.6
Technical & Other Business-Related Services 140.4 183.0 238.6
Royalties 1.5 11.0 22.2
Cultural, Sports & Recreational Services - 0.1 0.2
Total 3,296.4 3,811.1 3,665.9
Source: Singapore Department of Statistics, International Trade in Services Survey
n.a. Figures not available
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