WT/REG347/1  
3 March 2014  
(14-1103)  Page: 1/42  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN COSTA RICA AND SINGAPORE  
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Costa Rica and Singapore has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. 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). 
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264). Any statistical questions arising from this report may be 
addressed to Rowena Cabos (tel: +41 22 739 5185). WT/REG347/1 
 
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  TABLE OF CONTENTS 
 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  Information ............................................................................................. 9  
2.2   Structure of the Agreement ........................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 11 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 11 
3.1.3   Liberali zation schedule............................................................................................ 11 
3.1.3.1   Costa Rica .......................................................................................................... 11 
3.1.3.2   Singapore .......................................................................................................... 12 
3.1.4   Tariff rate quotas ................................................................................................... 13 
3.2   Rules of origin .......................................................................................................... 14 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 15 
3.4   Regulatory provisions on trade in goods ....................................................................... 15 
3.4.1   Standards ............................................................................................................. 15 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 15 
3.4.1.2   Technical barriers to trade .................................................................................... 15 
3.4.2   Safeguard mechanisms ........................................................................................... 16 
3.4.2.1   Global safeguards ............................................................................................... 16 
3.4.2.2   Bilateral safeguards ............................................................................................. 16 
3.4.2.3   Safeguard measures related to  balance of payment (BOP) difficulties ......................... 17 
3.4.3   Anti-dumping and countervailing measures ............................................................... 17 
3.4.4   Subsidie s and State-aid .......................................................................................... 17 
3.4.5   Customs-re lated procedures .................................................................................... 17 
3.5   Sector specific provisions on trade in goods .................................................................. 18 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 18  
4.1   Scope and definitions ................................................................................................ 18 
4.2   Denial of benefits ..................................................................................................... 19 
4.3   General provisions on trade in services ........................................................................ 19 
4.3.1   National treatment and MFN .................................................................................... 19 
4.3.2   Mark et acce ss ....................................................................................................... 19 
4.3.3   Local presence ...................................................................................................... 19 
4.3.4   Performanc e requirements ...................................................................................... 20 
4.3.5   Senior Managers and Board of Directors .................................................................... 20 WT/REG347/1 
 
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  4.3.6   Movement of  natural persons .................................................................................. 20 
4.4   Liberalization commitments ........................................................................................ 21 
4.4.1   Co sta Ri ca ............................................................................................................  21 
4.4.1.1   Costa Rica's sector specific  commitments on tr ade in services ................................... 22 
4.4.2   Singapore .............................................................................................................  25 
4.4.2.1   Singapore's sector specific  commitments on tr ade in services .................................... 25 
4.5   Regulatory provisions ................................................................................................ 29 
4.5.1   Domestic regulation ............................................................................................... 29 
4.5.2   Recognition ........................................................................................................... 29 
4.5.3   Subsidies .............................................................................................................. 29 
4.5.4   Safeguards ........................................................................................................... 29 
4.5.5   Other ................................................................................................................. .. 29 
4.5.5.1   In vestment ........................................................................................................ 29 
4.5.5.2   Monopolies and Exclusive Service Suppliers ............................................................ 30 
4.5.5.3   Transfers and Payments ....................................................................................... 30 
4.6   Sector specific provis ions on trade in services ............................................................... 30 
4.6.1   Financial services ................................................................................................... 30 
4.6.2   Telecommuni cation services .................................................................................... 31 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 31  
5.1   Tran sparency ........................................................................................................... 31 
5.2   Current payments and capital movements .................................................................... 31 
5.3   Exceptions ............................................................................................................... 31 
5.3.1   Genera l exceptions ................................................................................................ 31 
5.3.2   Security exceptions ................................................................................................ 32 
5.3.3   Ta xation  .............................................................................................................. . 32 
5.4   Accession and Withdrawal .......................................................................................... 32 
5.5   Government  procurement .......................................................................................... 32 
5.6   Intellectual property  rights and innovation ................................................................... 33 
5.7   Ot hers .................................................................................................................. .. 33 
5.7.1   Competition Policy ................................................................................................. 33 
5.7.2   Electronic Commerce .............................................................................................. 34 
5.7.3   Cooperation, promotion an d enhancement of trade rela tions ........................................ 34 
5.8   Disput e settlement ................................................................................................... 34 
5.9   Institutio nal framework ............................................................................................. 36 
5.10   Relationship with other agr eements concluded by the Parties ........................................ 36 
ANNEX 1 ....................................................................................................................... . 38 
 WT/REG347/1 
 
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  Key Facts 
 
Parties to the Agreement: Costa Rica and Singapore  
 
Date of Signature:  6 April 2010 
 
Date of Entry into Force: 1 July 2013 
 
Date of Notification:  16 September2013 
 
Full implementation:  1.1.2022  
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Free Trade Agreement between Costa Rica  and Singapore (hereinafter referred to as the 
Agreement) is Costa Rica's 11th and Singapore's 19th regional trade agreement (RTA).2 
1.2.  In 2012, with a population of 4.8 million,  Costa Rica's GDP was estimated at US$45 billion, 
while that of Singapore, with a population of 5.3 million, was estimated at US$275 billion. Both 
Costa Rica and Singapore mainly traded manufactured goods (representing respectively 60% of Cost Rica's and 69.2% of Singapore's exports and 72.5% of Costa Rica's and 59.7% of Singapore's 
imports). Averaged over the period 2010-2012, Singapore's trade (goods and services) to GDP 
ratio (400.2) is substantially higher than Costa Rica's (79.1). 
1.1  Merchandise trade 1.3.  In 2012, Costa Rica's shares in total world exports and imports were 0.06% and 0.09% 
respectively, while Singapore's shares were 2.22% for exports and 2.04% for imports. With total 
merchandise exports of US$11.5 billion and imports of US$11.6 billion, Costa Rica ranked 61
st in 
the world as exporter and 59th as importer compared to Singapore's rankings at 9th for exports and 
10th for imports (with global exports and imports of US$408 billion and US$380 billion). 
1.4.  In 2012, Costa Rica was Singapore's 30th largest source of imports and 95th largest 
destination for exports, accounting for respectively 0.2% of its total imports and 0.01% of its total exports.
3 For Costa Rica, Singapore represented 0.2% of its total imports, making Singapore Costa 
Rica's 27th largest source of imports, while it was also Costa Rica's 17th largest destination for 
exports, accounting for 0.6% of Costa Rica's total exports.4 
1.5.  Developments in global and intra-Party trade are presented in Chart 1.1. According to UNSD 
Comtrade, data show trade growing for both Parties at the global level as well as bilaterally. This 
general trend was inevitably marked by a decline in connection with the financial crises. Since 2009, trade has recovered to reach record levels in 2011. The Chart depicts Costa Rica's trade 
deficit with the world and Singapore's trade surplus with the world. As UNSD Comtrade figures are 
essentially constituted by imports statistics report ed by each country, discrepancy may exist when 
comparing such data
5. This is the case when comparing Charts A and B below with respect to 
bilateral trade between the Parties. While both se ts of data show a trade surplus for Costa Rica, 
                                               
1 Source for this section: WTO Trade Profiles 2013 (2012 data). Export figures are calculated f.o.b. and 
import figures are calculated c.i.f. Ranking in world trade excluding intra-EU trade. For bilateral trade, the figures are based on UNSD Comtrade. 
2 Agreements in goods and services counted as one an d only agreements in forc e, notified to the WTO. 
3 In 2012, the five top sources of imports for Singapore were: the EU27 (12.6%); Malaysia (10.6%); 
China (10.3%); the US (10.2%), and Korea (6.7%). The five top destinations of exports from Singapore were: 
Malaysia (12.3%); Hong Kong, China (11%); China (10.8%); Indonesia (10.6% ); and the EU27 (9.2%). 
4 In 2012, the five top sources of imports for Costa Rica were: the US (52%); China (8%); the EU27 
(7%); Mexico (6%); and Japan (3%). The five top destinations of export from Costa Rica were: the US (38.3%); the EU27 (17.7%; Panama (5.2%); Hong Kong, China (4.7%); and Nicaragua (4.5%). 
5 According to the Parties, the difference could be due to differences in the data elements in terms of 
how processing trade and trade from Fr ee Trade Zones are captured by the two FTA partners. Differences in 
values can also be explained by the fact that export values from Costa Rica, and im port values from Singapore 
show differences in value in terms of assembly and testing in Costa Rica versus the CIF price paid by the Singapore importers. WT/REG347/1 
 
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  the levels of trade from Costa Rica to Singapor e (imports for Singapore, exports for Costa Rica) 
vary at least tenfold.   
Chart 1.1 Costa Rica and Singapore: Merc handise bilateral trade and with world  
0.000.050.100.150.20
05101520
2000 2002 2004 2006 2008 2010 2012A. Costa Rica 2000-2012
(US$ billions)
Imports from Singapore (Right Axis)
Exports to Singapore (Right Axis)
Total Imports
Total Exports
0.00.51.01.52.0
050100150200250300350400450
2000 2002 2004 2006 2008 2010 2012B. Singapore 2000-2012 
(US$ billions)
Imports from Costa Rica (Right Axis)
Exports to Costa Rica (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade database. 
 
1.6.  The commodity structure of trade among th e Parties, and with the world, in the period 
2010-2012, is shown in Chart 1.2, on the basis of  Harmonized System (HS) Sections. Costa Rica's 
imports from Singapore are essentially constituted by machinery and plastics (respectively 36% 
and 23% of Costa Rica's imports from Singapore). While these sectors represent respectively 28.2% and 7.2% of Costa Rica's global imports, they correspond respectively to Singapore's 1st 
and 6
th largest global export sectors (respectively 44.8% and 3.8% of its global exports). 
Singapore mainly imports machinery from Costa Rica (96.8% of Singapore's imports), which also represents both its main global imports and Costa Rica's main global exports (respectively 38.9% and 26.3%). WT/REG347/1 
 
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  Chart 1.2 Costa Rica and Singapore: produc t composition of merchandise trade, annual 
average (2010-2012) 
36
2312966531Costa Rica imports from Singapore (%)
28
13
10 877544337Costa Rica's Global Imports (%)
45
189443314Singapore's Global Exports (%)
96.82.90.3Singapore's imports from Costa Rica (%)
39
315443329Singapore's Global Imports(%)
26
22
12965432226Costa Rica's Global Exports(%)Total: US$ 36 million Total: US$ 17 billion
Total: US$ 352 billionTotal: US$ 10 billionTotal:  US$ 390 billion
Total: US$ 652 million
Animal 
products
Vegetables
Vegetable 
fats & oilsChemicalsPlastics
Wood pulpPrecious 
stones
Base metalsVehicles
Optical
OtherPrepared foods
Machinery TextilesMinerals
 
Source: UNSD, Comtrade database. 
 
1.2  Trade in services and investment 
1.7.  In 2012, Costa Rica's shares of total commercial services exports and imports were 0.13% 
and 0.05% respectively. Singapore's shares represented respectively 2.57% and 2.84% of world 
exports and imports. With total commercial serv ices exports of US$5.5 billion, and imports of 
US$2 billion, Costa Rica was the world's 44th largest exporter and 82nd largest importer, compared 
to Singapore's ranking as 12th largest exporter and 6th largest importer (with commercial services 
exports of US$112 billion and imports of US$118 billion). 
1.8.  Chart 1.3 below shows the breakdown of trade in commercial services with the world for 
Costa Rica based on data for the period 2000-2012. The Chart shows a growing surplus for Costa Rica, which exports are mainly constituted by travel and computer and information services 
(representing respectively 42% and 34% of Costa Rica's global export of commercial services) and 
imports are mainly travel and transport services. WT/REG347/1 
 
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  Chart 1.3 Costa Rica's trade in services with world 
0123456
2000 2002 2004 2006 2008 2010 2012A. Costa Rica imports from world
2000-2012
(US$ Billion) 
0123456
2000 2002 2004 2006 2008 2010 2012B.Costa Rica exports  to world
2000-2012
(US$ Billion) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services
 
 
Source: UNCTAD.  
1.9.  Chart 1.4 below shows the breakdown of tr ade in commercial services for Singapore both 
bilaterally with Costa Rica and globally. While data on Singapore's trade with the world cover the period 2000-2012, figures on bilateral trade show the situation for the period 2010-2011. In 
relation to bilateral trade, the data show a positive trade balance for Singapore, with financial 
services representing 82% of its exports of commercial services to Costa Rica (transport representing the remaining 18%), and 12.5% of Singapore's global exports. Singapore's trade in 
services with the world has progressed during the period, though the impact of the economic and 
financial crisis can be observed in relation to both Singaporean imports and exports. In 2012, Singapore had a small trade deficit, with global imports representing US$112 billion and global exports valued at US$107 billion. WT/REG347/1 
 
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  Chart 1.4 Singapore's trade in services with Costa Rica and with the world 
0246810
2010 2011A. Singapore imports from Costa Rica
2010-2011
(US$ Million) 
0246810
2010 2011B. Singapore exports to Costa Rica
2010-2011
(US$ Million) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services050100150
2000 2002 2004 2006 2008 2010 2012C. Singapore imports from world
2000-2012
(US$ Billion)
050100150
2000 2002 2004 2006 2008 2010 2012D. Singapore exports to world
2000-2012
(US$ Billion)
 
 
Note: Bilateral service with Costa Rica only includes Transport and Financial services. No trade data with 
world of Communications and Computer and information for 2009-2012. 
 Source:  Singaporean authorities and UNCTAD. WT/REG347/1 
 
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  1.10.  Chart 1.5 below show the breakdown of Costa Rica's and Singapore's FDI stock and flow 
with the world, based on data for the period 2000-2012. For both Parties, the data show a widening deficit with inward stocks and flows with the world substantially larger than outward stocks and flows. 
Chart 1.5 Costa Rica and Singapore: FD I stock and flow with world (2000-2012) 
05101520
2000 2002 2004 2006 2008 2010 2012Costa Rica FDI stock with world,
2000-2012
(US$ billion) 
Outward
Inward
-0.50.00.51.01.52.02.5
2000 2002 2004 2006 2008 2010 2012Costa Rica FDI flow with world,
2000-2012
(US$ billion) 
Outward
Inward
0100200300400500600700800
2000 2002 2004 2006 2008 2010 2012Singapore FDI stock with world, 
2000-2012
(US$ billion) 
Outward
Inward
-100102030405060
2000 2002 2004 2006 2008 2010 2012Singapore FDI flow with world, 
2000-2012
(US$ billion) 
Outward
Inward
 
 
Source: UNCTAD. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed on 6 April 2010 and entered into force on 1 July 2013. The Parties 
notified the goods and services aspects of the Agreement to the WTO on 16 September 2013, in 
document WT/RG347/N/1 - S/C/N/709. The notification was made pursuant to Article XXIV:7(a) of GATT 1994 for goods, and to Article V:7(a) of GA TS for services. The text of the Agreement, 
together with its Annexes, is availabl e on the Parties' official websites: 
Costa Rica : 
http://www.comex.go.cr/tratados/proceso_leg islativo/singapur_tlc/texto_tratado.aspx  
 
Singapore : 
http://www.fta.gov.sg/fta _C_crsfta.asp?hl=48  
 
2.2.  According to Article 1.1, the Agreement establishes a free trade area consistent with Article XXIV of the GATT 1994 and Article V of the GATS.  WT/REG347/1 
 
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  2.2  Structure of the Agreement 
2.3.  The Agreement is composed of 19 Chapters. It includes a number of Annexes related to 
specific Chapters of the Agreement, including Appendixes and Annexes corresponding to the Parties Schedules of commitments related to their liberalization programme for trade in goods and 
trade in services, and is complemented by exchange s of letters between the Parties with respect to 
the authentic language of the Agreement and specific classification issues. 
Box 2.1 Structure of the Agreement 
Chapters, Annexes, 
and Appendixes Title/description 
Preamble  
Chapter 1 Initial provisions and General Definitions 
Chapter 2 Trade in Goods , including: 
Annex 2.1: Elimination of Customs Duties;  
Appendix 2.1: Costa Rica's Schedule 
Annex 2.2: Export Taxes 
Chapter 3 Rules of Origin, including: 
Annex 3.1: Exceptions for the General Rule of Origin 
Chapter 4 Customs, including: 
Annex 4.1: Data Elements to be Included in the Certification of Origin 
Chapter 5 Sanitary and Phytosanitary Measures 
Chapter 6 Technical Barriers to Trade 
Chapter 7 Trade Remedies 
Chapter 8 Government Procurement, including: 
Annex 8.1: Government procurement Schedules  
Annex 8.2: Officially Designated El ectronic Media for the Publication of   
Information on Gove rnment Procurement 
Chapter 9 Competition Policy 
Chapter 10 Trade in Services, including: 
Annex 10.1: Telecommunication Services 
Chapter 11 Investment, including: 
Annex 11.1: Expropriatio n and Nationalization 
Chapter 12 Electronic Commerce 
Chapter 13 Intellectual Property and Innovation 
Chapter 14 Cooperation, Promotion and E nhancement of Trade Relations 
Chapter 15 Transparency 
Chapter 16 Administration of the Agreement, including: 
Annex 16.1:  Implementation of Modifi cations Approved by the Commission 
Annex 16.2:  Remuneration and Payment of Common Expenses 
Chapter 17 Dispute Settlement 
Chapter 18 Exceptions 
Chapter 19 Final Provisions 
  
Annex I Non-Conforming Measures (existing measures)  
Annex II Non-Conforming Measures (future measures)  
  
Exchange of letters on the authentic language of the Agreement 
Exchange of letters on classification issues 
Source: WTO Secretariat based on the Agreement. WT/REG347/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  The Parties agree to apply national treatment to each other's' imports in accordance with 
Article III of the GATT 1994, which is incorporat ed into and made part of the Agreement.  
3.2.  Neither Party shall adopt or maintain any non-tariff measures that prohibit or restrict the 
import of any good of the other Party or any good destined for the territory of the other Party, 
except in accordance with its WTO rights and obligations, or in accordance with other provisions of 
the Agreement (Article 2.13). 
3.1.2  Liberalization of trade and tariff lines 3.3.  The Parties' tariff elimination commitments are scheduled in Annex 2.1 to the Agreement. 
During the transition period leading to the full implementation of the liberalization programme, 
they agree not to increase an existing customs duty, introduce a new customs duty or impose an additional customs duty to that determined in Annex 2.1. The Parties agree to consult, on the 
request of a Party, on accelerating the elimination of customs duties established under Annex 2.1. 
Unilateral acceleration by one Party is also possible.  
3.4.  The tariff classification of goods in trad e between the Parties shall be governed by the 
national nomenclature of each Party, which shall be consistent with the Harmonized System (HS). 
In an exchange of letters, the Parties clarify that  the preferential treatment granted by Costa Rica 
to "sweetened dairy creamer" applies to products classified under HS 2106.90.99.90. 
3.5.  Articles 2.10 through 2.12 contain special disciplines applicable to temporary admission of 
goods, goods re-entering after repair or alterati on, and duty-free entry of commercial samples of 
negligible value and printed advertising materials. 
3.1.3  Liberalization schedule 
3.6.  According to Annex 2.1 to the Agreement, Singapore shall entirely eliminate customs duties 
on all goods immediately upon the entry into force of the Agreement.  
3.7.  The same applies to Costa Rica except for the goods listed in Appendix 2.1, for which 
customs duties shall be eliminated according to one of three possible staging categories. Customs 
duties for products in Category "B" (nine lines at the HS eight digit level) will be removed in 5 equal annual stages (by 1.1.2017) beginning on th e date the Agreement enters into force. For 
products in Category "C" (602 lines at the HS ei ght digit level), the removal of customs duties is 
scheduled to take place in 10 equal annual stages from the entry into force of the Agreement, with 
full elimination on 1.1.2022. Category "D" covers products (six lines at the HS eight digit level) for which the progressive removal of customs duties will begin on 1.1.2018. 5 equal annual reductions 
will bring customs duties to zero on 1.1.2022.  
3.1.3.1  Costa Rica 3.8.  Table 3.1 shows tariff elimination commitments by Costa Rica under the Agreement. Costa 
Rica's applied tariff in 2013 consisted of 6,566 lines at the HS eight-digit level (HS 2012). All tariffs 
were expressed in ad valorem rates. In 2013, 142 lines were duty free on an MFN basis, representing 2.2% of Costa Rica's tariff and corresponding to 21.2% of its imports from Singapore during 2010-2012. Following the entry into force of  the Agreement, an additional 5,807 lines 
(88.4% of Costa Rica's tariff) became duty-free for imports from Singapore. As a result 90.6% of 
Costa Rica's tariff was duty free for imports from Singapore in 2013, corresponding to 74.6% of its imports from Singapore. As illustrated in Table 3.1, all tariff lines will be duty free in 2022, by the 
end of Costa Rica's implementation period, thus covering 100% of its imports from Singapore. 
Table 3.2 on Costa Rica's tariff elimination by HS Section shows that while Costa Rica eliminated tariffs upon entry into force of the Agreement across all HS Sections, of the 608 lines to be WT/REG347/1 
 
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  eliminated in 2022, the largest number are in HS VII (plastics), XV (base metals), I (live animals), 
IV (prepared foods) and IX (wood and articles of wood). 
Table 3.1 Costa Rica: Tariff eliminatio n commitments under the Agreement and 
corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines 
in Costa Rica's 
tariff schedule Value of Costa Rica's 
imports from 
Singapore  
 (2010-2012) 
in million US$ % of Costa 
Rica's total 
imports from 
Singapore 
2010-2012 
MFN duty free (2013)  142 2.2 7.3 21.2 
2013 5,807 88.4 18.4 53.4 
2017 9 0.1 0.0 0.0 
2022 608 9.3 8.8 25.4 
Total 6,566 100.0 34.5 100.0 
 
Note: Based on HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Costa Rica and WTO-IDB. 
Table 3.2 Costa Rica: Tariff elimination under the Agreement, by HS section 
HS section MFN average % 
2013 Total No. of lines MFN 2013 
duty-free Number of duty-free lines 
Under the Agreement 
2013 2017 2022 
I 20.7 299  213  86 
II 9.5 376  354  22 
III 8.9 54  54   
IV 13.9 274  190  84 
V 3.4 178 10 168   
VI 2.8 962 2 941  19 
VII 5.1 335  207  128 
VIII 8.8 108  108   
IX 8.8 138  59  79 
X 5.6 294  281  13 
XI 9.9 920  888  32 
XII 12.8 64  55  9 
XIII 7.0 176  156  20 
XIV 7.5 54  54   
XV 3.9 697  605  92 
XVI 2.8 974 116 834 9 15 
XVII 5.8 234 2 232   
XVIII 4.6 237 12 225   
XIX 15.0 21  21   
XX 10.9 162  153  9 
XXI 8.2 9  9   
Total 6.8 6,566 142 5,807 9 608 
 
Note: Based on HS 2007 nomenclature.  Source: WTO estimates based on data provided by Costa Rica. 
 
3.1.3.2  Singapore 
3.9.  Singapore eliminated customs duties on all goods immediately upon the entry into force of 
the Agreement.  
3.10.  Singapore's applied tariff in 2013 consisted of 9,558 lines at the HS eight-digit level 
(HS 2012), 99.94% of which had zero rates of duty  on an MFN basis and 6 lines had specific 
tariffs. Table 3.3 shows the scheduled elimination in terms of tariff lines and trade, as applied by Singapore to imports from Costa Rica. Following the entry into force of the Agreement, the 6 lines 
(0.1% of Singapore's tariff) became duty-free for imports from Costa Rica. As a result Singapore's 
entire tariff was duty free for imports from Costa Rica in 2013.  WT/REG347/1 
 
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  Table 3.3 Singapore: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Singapore's 
tariff schedule Value of Singapore's 
imports from Costa 
Rica 
 (2010-2012) 
in million US$ % of 
Singapore's 
total imports 
from Costa Rica 
2010-2012 
MFN duty free (2013)  9,552 99.9 651.7 100.0 
2013 6 0.1 0.0 0.0 
Total 9,558 100.0 651.7 100.0 
 
Note: Based on HS 2012 nomenclature. 
 Source:  WTO estimates based on data provided by Singapore and WTO-IDB. 
 
3.11.  Table 3.4 shows Singapore's tariff elimination,  by HS section. The 6 lines that were not duty 
free on an MFN basis before the entry into forc e of the Agreement and became immediately duty 
free for imports from Costa Rica are in HS Section IV and correspond to some alcoholic 
beverages.6  
Table 3.4 Singapore: Tariff elimination under the Agreement, by HS section  
HS section MFN average % 
2013 Total No. of lines MFN 2013 
duty-free Number of 
duty-free lines 
Under the 
Agreement 
I 0.0 344 344  
II 0.0 391 391  
III 0.0 150 150  
IV* 0.0 386 380 6 
V 0.0 198 198  
VI 0.0 1,098 1,098  
VII 0.0 392 392  
VIII 0.0 84 84  
IX 0.0 136 136  
X 0.0 224 224  
XI 0.0 928 928  
XII 0.0 63 63  
XIII 0.0 185 185  
XIV 0.0 75 75  
XV 0.0 825 825  
XVI 0.0 1,805 1,805  
XVII 0.0 427 427  
XVIII 0.0 339 339  
XIX 0.0 28 28  
XX 0.0 212 212  
XXI 0.0 10 10  
Total 0.0 8,300 8,294 6 
 
* MFN tariffs of six tariff lines under HS chapter 22 contain specific duties. Note: Based on HS 2012 nomenclature.  Source: WTO estimates based on data provided by Singapore and WTO-IDB. 
 
3.1.4  Tariff rate quotas 
3.12.  The Agreement does not contain any specific provision related to tariff rate quotas.  
                                               
6 The products correspond to stout or porter (HS 22030010); other beer including ale (HS 22030090); 
and some medicated samsu (HS 22089010, 22089020, 22089030, and 22089040). WT/REG347/1 
 
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  3.2  Rules of origin 
3.13.  Disciplines regarding rules of origin are set out in Chapter 3 of the Agreement.7 Annex 3.1 
contains the exceptions to the general rules of origin, contained in Article 3.5 (Not wholly obtained or produce goods), and defines the specific rule of origin applicable to the listed tariff headings or 
sub-headings. 
3.14.  According to Article 3.2, a good is considered as originating when: 
a. it is wholly obtained or produced entirely in the territory of one or both Parties 
(according to Article 3.4); 
b. it is produced entirely in the territory of one or both Parties, exclusively from materials 
whose origin complies with the provisions of Chapter 3; or 
c. it is produced in the territory of one or both Parties, using non-originating materials that 
conform to a change in tariff classification (CTC), a qualifying value content (QVC), or 
any other requirement (according to Article 3.5 and Annex 3.1). 
3.15.  Articles 3.4 and 3.3 define which products shall be considered as wholly obtained or 
produced in the territory of one or both Parties and the minimal operations not conferring origin. 
3.16.  According to Article 3.5, goods, which have undergone sufficient production in the territory 
of one or both Parties, shall be treated as originating goods of that Party. A good is considered to 
have undergone sufficient production in th e territory of one or both Parties if:  
a. it fulfils the product-specific rule as set out in Annex 3.1 to the Agreement; or  
b. where there is no product-specific rule, it undergoes a CTC at the HS six-digit level from 
that of the goods (change in tariff subheading); or the good fulfils a QVC of not less than 
35%.
8  
3.17.  The specific rules contained in Annex 3.1 detail, for the Headings or Sub-heading covered, 
how the CTC is applicable to confer origin to non-original material. In certain cases, it also 
registers manufacturing or processing operations9, as well as alternative QVCs (at levels between 
40% and 50% for selected products) that have to be met to confer origin.  
3.18.  Additional disciplines are contained in Articles 3.8 through 3.15 and cover the following 
aspects: de minimis level10 under which non-originating materials not complying with rules 
conferring origin may still be determined as originating for the purposes of the Agreement; accumulation for originating goods or materials from one Party being used in the production of goods in the other Party; accessories, spare parts, and tools; packaging materials and containers 
for retail sale; packing materials and containers for shipment; fungible goods and materials; 
indirect materials used in production; and transit through non-Parties. 
3.19.  Customs procedures relating to origin are covered by Section B of Chapter 4 (Customs 
procedures). The disciplines address claims for preferential treatment
11 (Article 4.12); waiver of 
certification of origin in case the customs value of imported goods does not exceed US$1,500 or its equivalent amount in the Party's currency (Article 4.13); record keeping requirement 
(Article 4.14); verification of origin by the authorities of the importing Party (Article 4.15); 
obligations relating to imports and exports (Articles 4.16 and 4.17); and third-party invoicing (Article 4.18).  
                                               
7 Article 3.1 defines the terms used in Chapter 3. 
8 The formula to be used to calculate the QVC is desc ribed in Article 3.6 and th e definition of the value 
of a material is contained in Article 3.7. For a number of  tariff lines, specific QVCs are defined in Annex 3.1. 
9 Manufacturing or processing operations cover the cu ltivation of fish, crustaceans, molluscs, and other 
aquatic invertebrates; the growth of ce rtain agricultural and horticultural g oods; the harvesting of certain fruits 
cereals or vegetables; and the manufacture from non-originating fibres of certain textiles. 
10 The de minimis level is set at 10% of the f.o.b. value of the good. 
11 Annex 4.1 to the Agreement lists the data elements to be included in the Certification of Origin. WT/REG347/1 
 
- 15 - 
 
  3.3  Export duties and charges,  and quantitative restrictions 
3.20.  The Parties agreed not to adopt or maintain any duty, tax or other charge on the export of 
goods to the territory of the other Party (Article 2.6). As an exception, however, Costa Rica may 
maintain its existing taxes on the exports of bananas, coffee, and meat (Annex 2.2).12 
3.21.  Neither Party shall adopt or maintain any non-tariff measures that prohibit or restrict the 
export of any good destined for the territory of th e other Party, except in accordance with its WTO 
rights and obligations, or in accordance with ot her provisions of the Agreement (Article 2.13). 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 3.22.  Under Chapter 5 of the Agreement, the Parties reaffirm their existing rights and obligations 
with respect to each other under the WTO SPS Agreement, including on the transparency 
provisions. They recognize and apply the de cisions adopted by the WTO Committee on SPS 
(Article 5.4). The Agreement also contains the Parties' trade facilitation commitment to cooperate 
and jointly identify work in the field of SPS me asures with a view to facilitating trade between 
them (Article 5.5). Nothing in Chapter 5 shall limit the authority of a Party to determine the level of protection it considers necessary for the protection of, inter alia , human health or safety, animal 
or plant life or health. In pursuance of this, each Party retains all authority to interpret its laws, 
regulations and administrative provisions (Article 5.9). 
3.23.  To facilitate the implementation of Ch apter 5 and cooperation between them, each Party 
shall designate a SPS Coordinator, who shall, inter alia , monitor the implementation and 
administration of the Agreement's rules on SPS (Article 5.7); facilitate information exchange; 
address any bilateral SPS issue; and review progress on addressing SPS matters that may arise between the Parties' competent SPS authorities.
13 The Parties agree to explore opportunities for 
future cooperation and collaboration on SPS matters  of mutual benefit, which may include training 
and exchange visits. Such activities shall be mutua lly agreed upon and subject to the availability of 
resources (Article 5.8). 
3.4.1.2  Technical barriers to trade 
3.24.  Chapter 6 of the Agreement covers technica l barriers to trade (TBT). The Parties reaffirm 
their existing rights and obligations under the WTO TBT Agreement and clarify that Chapter 6 is 
applicable14 to all standards, technical regulations and conformity assessment procedures, that 
may, directly or indirectly, affect trade in goods and/or assessments of manufacturers or 
manufacturing processes of goods traded betw een the Parties, regardless of their origin 
(Article 6.2). Nothing in Chapter 6 shall limit the authority of a Party to determine the level of 
protection it considers necessary for the protection of, inter alia , human health or safety, animal or 
plant life or health or the environment. In pursuance of this, each Party retains all authority to interpret its laws, regulations and administrative provisions (Article 6.12). 
3.25.  On technical regulations, the Parties agree,  in conformity with Article 2.4 of the WTO TBT 
Agreement, to use, to the maximum extent possible, relevant international standards as a basis for their technical regulations and to give positive consideration to access as equivalent, technical 
                                               
12 For bananas, the existing export taxes are defined pursuant to Law No. 5515 of 19 April 1974 and its 
amendment (Law No. 5538 of 18 June 1974), and Law No. 4895 of 16 November 1971 and its amendments (Law No. 7147 of 30 April 1990 and Law No. 7277 of 17 December 1991). For coffee (classified under HS 0901), the existing export taxes are defined pursuant to Law No. 2762 of 21 June 1961 and its amendment (Law No. 7277 of 22 September 1995). For meat, the existing export taxes are defined pursuant to Law No. 6247 of 2 May 1978 and Law No. 7837 of 5 October 1998. 
13 The Parties' competent authorities are listed under Article 5.9. 
14 Chapter 6 does not apply to SPS measures or purc hasing specifications prepared by governmental 
bodies for production or consumption requirements of  governmental bodies (See Chapter 8 on Government 
Procurement). WT/REG347/1 
 
- 16 - 
 
  regulations of the other Party, provided they adequately fulfil the objectives of their own 
regulations (Article 6.4). 
3.26.  On standards (Article 6.5), the Parties conf irm their obligation, under Article 4.2 of the WTO 
TBT Agreement, to ensure that their standardizin g bodies accept and comply with the Code of 
Good Practice for the Preparation, Adoption and Application of Standards (See Annex 3 of the WTO 
TBT Agreement). 
3.27.  On conformity assessment procedures (Artic le 6.6), the Parties list a number of existing 
mechanisms to facilitate the acceptance of conformity assessment results, inter alia : the importing 
Party's reliance on a supplier's declaration of conformity; voluntary arrangements between conformity assessment bodies from each party's territory; agreements on mutual acceptance of 
the results or certification of conformity assessment procedures, accreditation procedures for 
qualifying conformity assessment bodies; gove rnment designation of conformity assessment 
bodies, and unilateral recognition by one Party of the result of conformity assessment procedures 
performed in the other Party's territory. 
3.28.  Similar to the Chapter on SPS measures, Ch apter 6 also contain disciplines on transparency 
(Article 6.7); trade facilitation (Article 6.8), Information exchange (Article 6.9); and confidentiality (Article 6.10). 
3.29.  To facilitate the implementation of Ch apter 6 and cooperation between them, each Party 
shall designate a TBT Coordinator (Article 6.11), who shall, inter alia , monitor the implementation 
and administration of the Agreement's rules on TBT; facilitate information exchange; address any bilateral TBT issue; or facilitate cooperation in the areas of specific technical regulations by 
referring enquiries from a Party to the appropriate regulatory authorities.
15  
3.4.2  Safeguard mechanisms 3.30.  In Chapter 7, the Agreement contains disci plines applicable to global safeguard measures 
(Section A) and bilateral safeguard measures (Section B). 
3.4.2.1  Global safeguards 3.31.  Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Safeguards Agreement. The Agreement does not conf er any additional rights or obligations on the 
Parties with regard to actions taken pursuant to these two WTO legal instruments, except that a Party taking such an action shall exclude imports of an originating good from the other Party if such imports are not a substantial cause of serious injury or threat thereof (Article 7.1). Moreover, 
a bilateral and a global safeguard measure may not be applied at the same time, with respect to 
the same good.  
3.4.2.2  Bilateral safeguards 
3.32.  During the transition period
16, a Party may apply a bilateral safeguard measure if as a result 
of the reduction or elimination of a customs duty pursuant to the Agreement, an originating good is being imported into the Party's territory in such increased quantities, in absolute terms or 
relative to domestic production, and under such conditions as to constitute a substantial cause of 
serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good (Article 7.3). A bilateral safeguard measure can take one of the following forms:  
a. A suspension of the further reduction of any rate of customs duty on the good provided 
for in the Agreement; or  
                                               
15 The Parties' competent author ities for TBT-related matters ar e listed under Article 6.12. 
16 For the purpose of Chapter 7 of the Agreement, the transition period means the period during which a 
Party may adopt and maintain safeguard measure, and that shall include, for each good, the period for 
elimination of customs duties (set out in Annex 2.1) plus 2 years from the end of the duty elimination period 
with the exception of the goods in staging categories C an d D, for which the transition period will be  limited to 
the period of elimination of customs duties. A bilateral safeguard measure may be maintained beyond the expiration of the transition period only  with the consent of the other Party. WT/REG347/1 
 
- 17 - 
 
  b. An increase of the rate of customs duty on the good to a level not to exceed the lesser of 
the MFN applied rate of duty on the good in effect at the time the action is taken, and the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of the Agreement.  
3.33.  The Parties understand that neither tariff rate quotas nor quantitative restrictions would be 
a permissible form of safeguard measure (Footnote 1 of Chapter 7). Moreover, a bilateral safeguard measure may not exceed 2 years. That  period may however be extended by up to 
1 year if the competent authorities determine that the safeguard measure continues to be 
necessary to prevent or remedy serious injury an d to facilitate adjustment and that there is 
evidence that the industry is adjusting. On the termination of a bilateral safeguard measure, the rate of duty shall be the customs duty set out in  Annex 2.1 to the Agreement as if the safeguard 
measure had never been applied (Article 7.3). 
3.34.  Section B of Chapter 7 also contain provisions on investigation procedures and transparency 
requirements (Article 7.4); provisional safeguard measures (Article 7.5); notification and 
consultations (Article 7.6); and compensation and suspension of concessions (Article 7.7). 
3.4.2.3  Safeguard measures related to  balance of payment (BOP) difficulties 
3.35.  With respect to matters covered by the Agreement, the Parties may adopt or maintain 
restrictions to safeguard the balance of payments in a manner consistent with the conditions 
established in the WTO Agreement and with the Articles of Agreement of the International 
Monetary Fund (Article 18.5). BOP restrictions shall be applied on a non-discriminatory basis. 
3.4.3  Anti-dumping and countervailing measures 
3.36.  The Parties retain their rights and obligations under Articles VI, and XVI of GATT 1994, the 
WTO Agreement on Implementation of Article VI of the GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures, and the WTO Agreement on Agriculture (Article 7.8). 
Nevertheless, should a Party decide to impose an antidumping duty, the amou nt of such duty shall 
not exceed the margin of dumping, but it shall be less than the margin of dumping if such duty would be adequate to remove the injury to the domestic industry (Article 7.11). Moreover, 
antidumping or countervailing measures may not be applied by a Party where it can clearly be 
concluded that it is not in the public interest to apply such measures (Article 7.12). Furthermore, when determining dumping margins, the Parties shall ensure that the practice of zeroing
17 is not 
used in any of the stages included in an antidumping investigation, including the review listed in 
Articles 9 to 11 of the WTO Agreement on Implemen tation of Article VI of the GATT 1994. Finally, 
Article 7.10 contains investigation-related disciplines promoting transparency and legal certainty. 
3.4.4  Subsidies and State-aid 
3.37.  According to Article 7.9, neither Party may introduce or maintain any export subsidy on any 
agricultural good destined for the territory of the other Party. 
3.4.5  Customs-related procedures 
3.38.  Chapter 4 of the Agreement covers customs procedures, including customs procedures 
relating to origin (See section 3.2 above). It contains disciplines relating to publication of customs laws, regulations, and general administrative procedures (Article 4.1); release of goods (Article 4.2); automation (Article 4.3); risk  management (Article 4.4); cooperation on 
customs-related matters (Article 4.5); confidentialit y (Article 4.6); review and appeal of decisions 
or administrative acts (Article 4.7); penalties for violations of a Party's customs laws and regulation (Article 4.8); and advance rulings in respect of the tariff classification and origin of 
goods and whether a good qualifies for preferential tariff treatment (Article 4.9). In addition, when 
the Parties cannot agree on the classification of a good, the Parties should hold the appropriate consultations with the World Customs Organization in order to obtain a recommendation that may 
                                               
17 The term "zeroing" is understood as  the practice of converting to zero the negative dumping margins, 
obtained for one or several types of goods, when calcul ating the margin of dumping of the investigated good.  WT/REG347/1 
 
- 18 - 
 
  permit the Parties to reach a uniform position regarding the correct classification of the good under 
the HS (Article 4.10). 
3.39.  In addition to the provisions containe d in Chapter 4 (on Customs), the Agreement also 
addresses customs-related procedures elsewhere in the text. For instance, it is mentioned that 
Parties shall determine the customs value of g oods traded between them in accordance with 
Article VII of GATT 1994 and the WTO Customs Valuat ion Agreement (Article 2.7). The Parties also 
refer to Article VIII.1 of GATT 1994 and confirm th at all administrative fees and charges imposed 
on or in connection with import or export are limited to the approximate cost of services rendered 
and do not represent an indirect protection to do mestic goods or a taxation on imports or exports 
for fiscal purposes (Article 2.8). Moreover, the Parties agree not to require consular transactions, including related fees and charges, in connection with the import of any good of the other Party. 
They shall also make available and maintain thro ugh the Internet a list of the fees and charges 
they impose in connection with imports or exports
18 (Article 2.9).  
3.5  Sector specific provisions on trade in goods 
3.40.  There are no sector specific provisions on trade in goods.  
4  PROVISIONS ON TRADE IN SERVICES 4.1  Scope and definitions 
4.1.  Rules governing trade in services are found in Chapter 10 of the Agreement, while Chapter 
11 addresses investment. In case of inconsistency between the rules contained in Chapter 11 and those contained in another Chapter, the other Chapter shall prevail to the extent of the inconsistency.  
4.2.  Chapter 10 (trade in services) applies to measures adopted or maintained by a Party 
affecting cross-border trade in services
19 by service suppliers of the other Party. The covered 
measures include measures affecting the production, distribution, marketing, sale and delivery of a 
service; the purchase or use of, or payment for, a service; the access to and use of distribution, 
transport, or telecommunications networks and servic es in connection with the supply of a service; 
the presence in its territory of a service supplier of the other Party; and the provision of a bond or 
other form of financial security as a condition for the supply of a service. However, Chapter 10 
does not apply to government procurement; air se rvices (including domestic and international air 
transportation services, whether scheduled or non-scheduled, and related services in support of air services)
20; and subsidies or grants provided by a Pa rty. Services supplied in the exercise of 
governmental authority in a Party's territory are not covered either.  
4.3.  Chapter 11 (investment) applies to measures  adopted or maintained by a Party relating to: 
investors of the other Party; investments of investors of the other Party in the territory of the 
former Party; or, with respect to the disciplines on performance requirements, all the investments 
in the territory of the Party. However, Chapter 11 does not apply to any taxation measure unless otherwise provided by the Agreement, as well as services supplied in the exercise of governmental 
authority. Annex 11.1 applies, in the context of investment rules, to expropriation and 
nationalization. 
                                               
18 For Costa Rica, the information on fees and charges imposed in connection with imports or exports, is 
published in the sites of the public entities responsible for their admini stration, including: General Customs 
Directorate ( http://www.hacienda.go.cr/tica/consultas/hdbaranc.aspx ) and Phytosanitary Service 
(http://www.sfe.go.cr/trami tes/formas_de_pageo.html ). For Singapore; the list of fees and charges are listed 
on Singapore Customs' website at http://www.customs.gov.sg , under the "Valuation, Duties, & GST" link. 
19 The term "cross-border supply of services" or "cro ss-border trade in services" means the supply of a 
service: from the territory of a Party into the territory of the other Party; in the territo ry of a Party by a person 
of that Party to a person of the other Party; or by a na tional of a Party in the terri tory of the other Party. The 
supply of a service in the territory of a Party by an inve stor of the other Party or an investment of an investor 
of the other Party does not constitute "cross-border supply of services" (and is covered by Chapter 11; 
investment). 
20 Traffic rights are not covered by Chapter 10. However, Chapter 10 covers  aircraft repair and 
maintenance services; the selling and marketing of air transport services; and computer reservation system 
(CRS) services. WT/REG347/1 
 
- 19 - 
 
  4.4.  Annex 10.1 sets out the regulatory principles  applicable to telecommunication services, other 
than the cable or broadcast distribution of radio or television programming, both in relation to 
disciplines on trade in services and to disciplines on investment. 
4.5.  Financial services are excluded from the co verage of Chapter 10, though the Parties reaffirm 
their commitments under GATS with respect to fina ncial services (Paragraph 7 to Article 10.2). In 
relation to disciplines on investments (Chapter 11), measures with respect to investors of the other Party and investments of such investors in the financial institutions are only covered by the 
provisions on compensation for losses (Article 11.7); special formalities and information 
requirements (Article 11.9); expropriation and nationalization (Article 11.10); transfers (Article 11.11); senior management and boards of directors (Article 11.12); denial of benefits (Article 11.14), and investor-State dispute settlement (Article 11.16). 
4.2  Denial of benefits 
4.6.  Under Article 10.12, a Party may deny the benefits of Chapter 10 (trade in services) to a 
service provider of the other Party if that service provider is an enterprise owned or controlled by 
persons of a third-party and if such enterprise has no substantive business operations in the 
territory of the other Party. Moreover, a service pr ovider of the other Party may also be denied the 
benefits of Chapter 10 if it is an enterprise owned or controlled by person of the denying Party and 
if such enterprise has no substantive business operations in the territory of the other Party. The 
same approach is followed, in relation to investment (Chapter 11), for investors of the other Party and to its investments (Article 11.14). 
4.3  General provisions on trade in services 
4.3.1  National treatment and MFN 
4.7.  Articles 10.3 and 10.4 contain national treatment and MFN clauses applicable with respect to 
the Parties' service providers. Similar provisions  are contained in Articles 11.4 and 11.5 with 
respect to the Parties' investors and to their investments when those are related to the 
establishment, acquisition, expansion, manage ment, conduct, operation, and sale or other 
disposition of investments. 
4.8.  However, the Parties commitments on national treatment and MFN do not apply to the 
existing non-conforming measures which they list in Annex I to the Agreement and/or any measure that they adopt or maintain with respect to sectors, sub-sectors or activities listed in Annex II of the Agreement. Moreover, the discip lines of Chapter 11 in relation to national 
treatment and MFN do not apply either to subsidies or grants provided by a Party, to government 
procurement, or to any measure that is an exception to, or derogation from, a Party's obligation under the TRIPS Agreement (Paragraphs 4-6 of Article 11.13). 
4.3.2  Market access 
4.9.  A Party shall not adopt or maintain, either on the basis of a regional subdivision or on the 
basis of its entire territory, measures that impose  the types of limitations covered by Paragraphs 
2(a) to 2(e) of Article XVI of the GATS (Article 10.5). However, the Parties' commitments on 
market access do not apply to the existing non-conforming measures which they list in Annex I to the Agreement and/or any measure that they adopt or maintain with respect to sectors, sub-sectors or activities listed in Annex II of the Agreement. 
4.3.3  Local presence 
4.10.  Neither Party may require a service provider of the other Party to establish or maintain a 
representative office or any form of enterprise, or to be resident, in its territory as a condition for 
the cross-border supply of a service (Article 10.6). However, the Parties commitments on local 
presence do not apply to the existing non-conforming measures which they list in Annex I to the Agreement and/or any measure that they adopt or ma intain with respect to sectors, sub-sectors or 
activities listed in Annex II of the Agreement. WT/REG347/1 
 
- 20 - 
 
  4.3.4  Performance requirements 
4.11.  With respect to investment (Chapter 11), neither Party may impose or enforce certain 
requirements listed in Article 11.8. In addition, a Party may not enforce any commitment or undertaking, in connection with the establishment,  acquisition, expansion, management, conduct, 
operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party 
in its territory. Some exceptions are however listed in Article 11.8.
21 Moreover, the receipt or 
continued receipt of an advantage may not be conditioned by a Party on compliance with: (i) a 
given level or percentage of domestic content; (ii)  the purchase, use or accord of a preference to 
goods produced in its territory or the purchase of goods from persons in its territory; (iii) a relation 
between the volume or value of imports and the volu me or value of exports, or with the amount of 
foreign exchange inflows associated with such investment; or (iv) a restriction of sales of goods or 
services in its territory that investment produces or supplies by relating such sales in any way to 
the volume or value of its exports or foreign exchange earnings. A Party may condition the receipt or continued receipt of an advantage, in connection with an investment in its territory of an 
investor of a Party or of a non-Party, on compliance with a requirement to locate production, 
supply a service, train or employ workers, construc t or expand particular facilities, or carry out 
research and development, in its territory.  
4.3.5  Senior Managers and Board of Directors 
4.12.  Under Article 11.12, neither Party may require that an enterprise of that Party that is an 
investment of an investor of the other Party appoint to senior management positions natural persons of any particular nationality. A Party may require that a majority of the board of directors, 
or any committee thereof, of an enterprise of that Party that is an investment of an investor of the 
other Party, be of a particular nationality, or reside nt in the territory of the Party, provided that the 
requirement does not materially impair the ability of the investor of the other Party to exercise 
control over its investment. 
4.3.6  Movement of natural persons 4.13.  The Agreement does not contain a specific Chapter or Annex addressing movement of 
natural persons. Nevertheless, Chapter 10 (trade in  services) includes in the definition of cross-
border supply of services the supply of a service by  a national of a Party in the territory of the 
other Party. However, Chapter 10 does not impose  any obligation on a Party with respect to a 
national of the other Party seeking access to its employment market, or employed on a permanent 
basis in its territory, and does not confer any right on that national with respect to that access or 
employment nor shall it apply to measures regarding citizenship or residence on a permanent basis. Moreover, nothing in Chapter 10 shall prevent a Party from applying measures to regulate 
the entry of natural persons of the other Party into, or their temporary stay in, its territory, 
including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its border, provided that such measures are not applied in 
such a manner as to nullify or impair the benefits accruing to the other Party under the terms of 
Chapter 10. The sole fact of requiring a visa for natural persons of the other Party shall not be regarded as nullifying or impairing benefits under a specific commitment. Furthermore, the Parties make general reservations related to mode 4 in th eir respective lists of non-conforming measures. 
Both Parties reserve in Annex II to the Agreement the right to adopt or maintain any measure with 
respect to the supply of a service by the presence of natural persons, or other movement of natural persons, including immigration, entry or temporary stay. Under the GATS, both Parties 
register horizontal limitations related to temporary movement of natural persons. Under the 
Agreement, Costa Rica and Singapore make a reservation with respect not only to market access, national treatment and local presence commitments, but also in relation to their MFN 
commitments.  
                                               
21 For example, when a Party authorizes the use of an  intellectual property right in accordance with 
Article 31 of the TRIPS Agreement, the establishmen t, acquisition, expansion, management, conduct, 
operation, or sale may be conditioned to the transfer of a particular technology, production process or other 
proprietary knowledge to a person in a Party's territory. WT/REG347/1 
 
- 21 - 
 
  4.4  Liberalization commitments 
4.14.  Liberalization modalities for Chapters 10 (t rade in services) and 11 (investment), follow a 
"negative list" approach which assumes that all sectors or sub-sectors covered by these Chapters are liberalized unless otherwise provided in the Parties' non-conforming measures of the central 
level of government in Annexes I and II. Moreov er, existing non-conforming measures that are 
maintained by a Party at a local level of government are excluded from the coverage of the commitments. Furthermore, an amendment to any non-conforming measure of any level of 
government shall not decrease the conformity of the measure as it existed immediately before the 
amendment (Articles 10.7.1(c) and 11.13.1(c)). 
4.15.  The sections below present the Parties' liberalization commitments under the Agreement as 
compared to their GATS commitments. Structural differences between the GATS and the trade in 
services and investment provisions of the Agreem ent have however to be taken into account when 
considering this part of the factual presentation. After summarizing MFN exemptions as well as horizontal limitations registered in the Agreemen t by each Party, Tables 4.1 and 4.2 summarize 
the specific commitments made by the Parties under the Agreement, by main sectors and 
sub-sectors, and compare them with the Parties' GATS Schedules. The Tables also indicate in 
which sector or subsector Parties have made reservations. Improvements in existing 
GATS commitments are either a reduction in the limitations applicable to national treatment, 
additional sub-sectors in which commitments are made, and/or new commitments. It should be however underlined that horizontal limitations in the GATS Schedule of Specific Commitments and reservations covering all sectors in Annexes I and II of the Agreement, as well as MFN reservations 
or exemptions, are not included in the Tables . Mode 4 commitments are also excluded. The 
summaries of MFN and horizontal limitations in the text complement the summary Tables. 
4.4.1   Costa Rica 
4.16.  In its GATS schedules, Costa Rica has made commitments in 20 out of 155 services 
sectors.
22 Under the Agreement, as a negative list approach is chosen, all services sectors are 
deemed to be liberalized unless a reservation is registered in Annexes I or II. The Agreement 
leaves out however financial services (Paragraph 7 of Article 10.2 with respect to cross-border 
trade in services and paragraph 1 of Article 11.3 with respect to investment).23 
4.17.  Costa Rica's GATS MFN exemptions cover professional services and advertising services 
connected with radio, television and the cinematographic industry, passenger and freight 
transportation and a general measure under bilateral treaties for the promotion and protection of 
investment. Under the Agreement, Costa Rica registers 26 MFN reservations (out of a total of 39 reservations). For all sectors, Costa Rica reserves the right to adopt or maintain any measure that 
accords differential treatment to countries under any bilateral or multilateral international 
agreement in force or signed prior to the date  of entry into force of the Agreement. For 
agreements in force or signed after 1 July 2013, Costa Rica reserves non-MFN measures involving 
air services; fisheries, maritime and ports and auxiliary services to maritime and ports; land 
transport; postal and courier services; telecommunications services; e-commerce; and environment. In addition, MFN exemptions are a pplicable to measures Costa Rica may take in 
relation to activities reserved to the State and foreign investment participation in such activities; 
rights or preferences to social or economic gr oups under disadvantage or to native groups; 
activities or services considered as public services; and cultural industries. Costa Rica also introduces sectoral MFN reservations for some existing measures related to a number of 
professional services, similar to its GATS reserv ations; and some land transportation services, 
including road freight transportation. It also identifies certain social services; certain services incidental to energy and to fishing; gambling; some activities related to railroads, ports and 
airports; environmental services; land planning and development; postal services; 
telecommunication, audiovisual and advertising services; investigation and security services; maritime and internal waterways transport servic es; certain services auxiliary of all modes of 
transport; and passenger land transportation services as sectors, or sub-sectors for which it 
reserves its rights to impose or maintain non-MFN measures. 
                                               
22 Source: WTO country profile, 2013. 
23 The Parties' GATS commitments in this particular sector are however reaffirmed. WT/REG347/1 
 
- 22 - 
 
  4.18.  With respect to horizontal limitations24, under the GATS, Costa Rica's horizontal limitations 
cover mainly commercial presence in the coasta l shore as well as temporary movement of 
persons. Under the Agreement, while some of the above-mentioned MFN reservations are horizontal and apply to all sectors, Costa Rica also introduces specific horizontal limitations, in 
Annex I, with respect to investment and/or cross-border trade, related to, inter alia , local presence 
through branches and the development of activities in the coastal shore.
25 
4.4.1.1  Costa Rica's sector specific  commitments on trade in services 
4.19.  The following section identifies some of  the main differences, by sector, between Costa 
Rica's GATS schedule and its sector-specific commit ments under the Agreement. It should also be 
read in conjunction with its non-conforming me asures in Annexes I, and II of the Agreement. 
Table 4.1 Costa Rica: comparison betw een the GATS and Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments Compared 
to the GATS  Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
  Invest-
ment Cross-
border 
trade Invest-
ment Cross-
border 
trade 
1. Business services       
A. Professional Services … New     
B. Computer and Related Services  Partial Improved     
C. Research and Development Services  --- New     
D. Real Estate Services  --- New     
E. Rental/Leasing Services without Operators  Partial Improved     
F. Other Business Services --- New     
2. Communication services        
A. Postal services --- Similar     
B. Courier services --- New     
C. Telecommunication services  --- Similar     
D. Audiovisual services --- Similar     
3. Construction and related engineering 
services        
A. General construction work for buildings --- New     
B. General construction work for civil Engineering --- New     
C. Installation and assembly work  --- New     
D. Building completion and finishing work  --- New     
E. Other --- New     
4. Distribution services       
A. Commission agents' services --- New     
B. Wholesale trade services --- New     
C. Retailing services --- New     
D. Franchising --- New     
5. Education services       
A. Primary education services Partial Improved     
B. Secondary education services  Partial Improved     
C. Higher education services  Partial Improved     
D. Adult education --- New     
E. Other education services  --- New     
6. Environmental services       
A. Sewage services --- Similar     
B. Refuse disposal services --- Similar     
C. Sanitation and similar services  --- Similar     
D. Other --- Similar     
7. Financial services       
A. All insurance and insurance-related services  --- Excluded     
B. Banking and other financial services Partial Excluded     
                                               
24 Some of the horizontal limitatio ns are already covered above becaus e Costa Rica made reservations 
related to the MFN principle. 
25 The reservation on "marit ime-terrestrial zone" is similar, but phrased differently, to the one contained 
in Costa Rica's GATS Schedule. WT/REG347/1 
 
- 23 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments Compared 
to the GATS  Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
  Invest-
ment Cross-
border 
trade Invest-
ment Cross-
border 
trade 
8. Health related and social services       
A. Hospital services Partial Similar     
B. Other Human Health Services --- New     
C. Social Services --- New     
D. Other --- New     
9. Tourism and travel related services        
A. Hotels and restaurants (including catering) Partial Improved     
B. Travel agencies and tour operators services Partial Improved     
C. Tourist guides services Partial Improved     
10. Recreational and cultural and sporting 
services       
A. Entertainment services --- New     
B. News agency services --- New     
C. Libraries, archives, museums and other 
cultural services --- New     
D. Sporting and other recrea tional services  --- New     
11. Transport services        
A. Maritime Transport Services --- Similar     
B. Internal Waterways Transport --- Similar     
C. Air Transport Services Partial Similar     
D. Space Transport  --- Similar     
E. Rail Transport Services --- Similar     
F. Road Transport Services --- New     
G. Pipeline Transport  --- New     
H. Services auxiliary to all modes of transport  --- Similar     
I. Other Transport Services  --- New     
 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered 
in the Table. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. 
New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments) : Reservation listed in Annexes I and/or II to the Agreement (existing or future non-conforming 
measures; services and/or investment reservations). 
 Source:  Draft Consol idated GATS Schedule of Specific Commitments (S/DCS/W/CRI), prepared by the 
Secretariat (in 2003) and Costa Rica's Schedules annexed to the Agreement.  
 
4.4.1.1.1  Business services 
4.20.  Though the non-complying measures listed by Costa Rica in its Schedule attached to the 
Agreement does not always fully match the limitations contained in its GATS Schedule, overall, Costa Rica expands the coverage of is commitments under the Agreement. 
4.4.1.1.2  Communication services 
4.21.  This sector is not included in the Schedule of Specific Commitments under the GATS. Under 
the Agreement, Costa Rica takes limited commitments as it registers general reservations for future measures with respect to postal services, telecommunication services as well as audiovisual 
services. WT/REG347/1 
 
- 24 - 
 
  4.22.  Annex 10.1 to the Agreement also contains regulatory principles applicable to 
telecommunication services, other than the cable or broadcast distribution of radio or television programming (see below). 
4.4.1.1.3  Constructions and related engineering services 
4.23.  This sector is not included in the Schedule of Specific Commitment under the GATS. Under 
the Agreement, Costa Rica does not have any reservation for existing measures and does not reserve its right to take any future restrictive measure. 
4.4.1.1.4  Distribution services 
4.24.  Costa Rica does not include this sector in the Schedule of Specific Commitment under the 
GATS. However, under the Agreement, Costa Rica introduces some reservations for some wholesale trade services and some retailing services. 
4.4.1.1.5  Educational services 
4.25.  Costa Rica has bound primary, secondary and higher education services under the GATS, 
with some limitations. Because of the negative list approach, liberalization commitments apply to 
the entire sector under the Agreement. However, Costa Rica has a non-conforming measure for an 
existing measure, which has no equivalent under the GATS, and introduces a general reservation for the whole sector in relation to possible futu re measures connected with public education.  
4.4.1.1.6  Environmental services 
4.26.  This sector is not included in the Schedule of Specific Commitments under GATS
26. Under 
the Agreement, Costa Rica takes a general reservation for possible future measures, which thus, if materialized, would amount to an unchanged situation for its partner's environmental services 
providers.  
4.4.1.1.7  Financial services 4.27.  Financial services (covered partially by Costa Rica under the GATS) are not covered under 
the Agreement for cross-border trade and only to a limited extend with respect to investment. 
Nevertheless, the Parties introduce a GATS floor provision in the Agreement. 
4.4.1.1.8  Health relate d and social services 
4.28.  Under the GATS, Costa Rica has bound some hospital services, with some limitations. 
Because of the negative list approach, liberalization commitments apply to the entire sector under the Agreement. Costa Rica, nevertheless, introduces a reservation for the whole sector for possible future measures connected with health and child ca re, when established or maintained for a public 
purpose.  
4.4.1.1.9  Tourism and travel related services 4.29.  Costa Rica has undertaken commitments in th e GATS, with limitations, for the whole sector. 
Under the Agreement, it only registers existing non-conforming measures with respect to tourist 
guides, and travel agencies. 
4.4.1.1.10  Recreational, cult ural and sporting services 
4.30.  This sector is not included on the Schedu le of Specific Commitments under the GATS, but it 
is fully covered under the Agreement, though with a limitation for gambling activities, advertising, news agency services and tourism marinas and related services. 
                                               
26 The Schedule of Commitments only mentions Banking and other financial services (See Costa Rica's 
GATS Schedule of Specific Commitments, Supplement 1). WT/REG347/1 
 
- 25 - 
 
  4.4.1.1.11  Transport services 
4.31.  Costa Rica has a limited commitment on so me air transport services under the GATS. Under 
the Agreement, the whole sector is covered, thou gh there a number of restrictions, some of them 
far reaching, for most sub-sectors. Improvements are however made through the coverage, with 
some limitations, of space transport, some road  transport services, pipeline transport and other 
transport services. 
4.4.2   Singapore 
4.32.  In its GATS schedules, Singapore has made commitments in 67 out of 155 services 
sectors.27 Under the Agreement, as a negative list approach is chosen, all services sectors are 
deemed to be liberalized unless a reservation is registered in Annexes I or II. For Singapore as for Costa Rica, the Agreement leaves out financial services.
28 
4.33.  Singapore's GATS MFN exemptions cover a ll services with respect to certain aspects of 
temporary movement of persons; investment gu arantees agreements and tax credit schemes. 
Singapore's GATS List of MFN exemptions also cove r preferential treatment in areas such as legal 
services; broadcasting; computer reservation systems; some maritime transport services where 
bilateral shipping agreements exist; and reinsurance and retrocession as well as other banking and other financial services. Under the Agreement, Sing apore has 42 MFN reservations (out of a total 
of 81). As it is the case for Costa Rica, for all sectors, Singapore reserves the right to adopt or 
maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of the Agreement. For agreements in force or signed after 1 April 2013, Singapore reserves non-MFN 
measures involving air services; maritime and ports and auxiliary services to maritime and ports; 
land transport; postal and courier services; telecommunications and information technology services; e-commerce; and environment. In addition, MFN exemptions are applicable to measures 
it may take in relation to the alienation and divestment of real estate owned by the State, but also 
the divestment of equity interests in, and/or the assets of, an enterprise that is wholly or partially owned by the Singapore Government; and the full or  partial development to the private sector of 
services provided in the exercise of governmental  authority. Singapore also registers sectoral MFN 
existing restrictions related to some professional services, for which no corresponding limitations can be found under the GATS, as well as some limit ations related to the operation of the Port of 
Singapore. Moreover, Singapore reserves its right to maintain or adopt any measure affecting the 
provision of certain telecommunications services; broadcasting services at large as well as some 
entertainment and cultural services; some profe ssional services; primary, secondary and higher 
education services; some health services; some environmental services; postal and courier 
services; and a number of specific activities connected to transport services (such as computer 
reservation systems; support services for rail and road transport; freight forwarding; and internal waterways transport services). 
4.34.  With respect to horizontal limitations
29, under the GATS, Singapore's horizontal limitations 
cover mainly temporary movement of persons and senior management and boards of directors-related conditions. Under the Agreement, while a number of these MFN reservations are horizontal and apply to all sectors, Singapore also introduces specific horizontal limitations, with 
respect to investment and/or cross-border trade, related to, inter alia , some activities of the Port 
of Singapore Authorities; and citizenship or residency requirements with respect to the management of some types of enterprises. 
4.4.2.1  Singapore's sector specific  commitments on trade in services 
4.35.  The following section identifies some of the main differences, by sector, between 
Singapore's GATS schedule and its sector-specifi c commitments under the Agreement. It should 
also be read in conjunction with Singapore's non-conforming measures in Annexes I, and II of the 
Agreement. 
                                               
27 Source: WTO country profile, 2013. 
28 The Parties' GATS commitments in this particular sector are however reaffirmed. 
29 Some of the horizontal limitations are already covered above because Singapore made reservations 
related to the MFN principle. WT/REG347/1 
 
- 26 - 
 
  Table 4.2 Singapore: comparison between the GATS and Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitment
s Compared to 
the GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
  Invest-
ment Cross-
border 
trade Invest-
ment Cross-
border 
trade 
1. Business services       
A. Professional Services Partial Similar     
B. Computer and Related Services  Partial Similar     
C. Research and Development Services  Partial Similar     
D. Real Estate Services  --- Improved     
E. Rental/Leasing Services without Operators  --- New     
F. Other Business Services Partial Similar     
2. Communication services        
A. Postal services --- Similar     
B. Courier services Partial Limited     
C. Telecommunication services  Partial Similar     
D. Audiovisual services Partial Similar     
3. Construction and related engineering 
services        
A. General construction work for buildings Partial Improved     
B. General construction work for civil Engineering Partial Improved     
C. Installation and assembly work  Partial Improved     
D. Building completion and finishing work  Partial Improved     
E. Other Partial Improved     
4. Distribution services       
A. Commission agents' services --- New     
B. Wholesale trade services --- New     
C. Retailing services --- New     
D. Franchising --- New     
5. Education services       
A. Primary education services --- New     
B. Secondary education services  --- New     
C. Higher education services  --- New     
D. Adult education --- New     
E. Other education services  --- New     
6. Environmental services       
A. Sewage services --- New     
B. Refuse disposal services --- New     
C. Sanitation and similar services  --- New     
D. Other --- New     
7. Financial services       
A. All insurance and insurance-related services  Partial Excluded     
B. Banking and other financial services Partial Excluded     
8. Health related and social services       
A. Hospital services --- New     
B. Other Human Health Services --- New     
C. Social Services --- New     
D. Other --- New     
9. Tourism and travel related services        
A. Hotels and restaurants (including catering) Partial Similar     
B. Travel agencies and tour operators services Partial Improved     
C. Tourist guides services Partial Improved     
10. Recreational and cultural and sporting 
services       
A. Entertainment services --- New     
B. News agency services --- New     
C. Libraries, archives, museums and other 
cultural services Partial Similar     
D. Sporting and other recrea tional services  --- New     
11. Transport services        
A. Maritime Transport Services Partial Similar     
B. Internal Waterways Transport --- New     
C. Air Transport Services --- New     
D. Space Transport  --- New     
E. Rail Transport Services --- New     
F. Road Transport Services --- New     WT/REG347/1 
 
- 27 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitment
s Compared to 
the GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
  Invest-
ment Cross-
border 
trade Invest-
ment Cross-
border 
trade 
G. Pipeline Transport  --- New     
H. Services auxiliary to all modes of transport  Partial      
I. Other Transport Services  --- New     
 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered 
in the Table. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). : Reservation listed in Annexes I and/or II to the Agreement (existing or future non-conforming 
measures; services and/or investment reservations). 
 Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W /SGP), prepared by the 
Secretariat (in 2003) and Singapore's Schedules annexed to the Agreement.  
 
4.4.2.1.1  Business services 
4.36.  Like Costa Rica, Singapore lists in Annex I existing non-complying measures slightly 
differently than it does under its GATS Schedule . Nevertheless, Singapore expands the coverage of 
its commitments under the Agreement to encompass in particular real estate services (consultancy 
services, real estate agency services, real estate auction services and real estate valuation services) and rental and leasing services without operators, with a residency requirement. 
4.4.2.1.2  Communication services 
4.37.  Most of the sector is only partly bound, with some limitations, under the GATS. Under the 
Agreement, Singapore registers general reservations  for future measures with respect to postal 
services (unbound under the GATS), telecommunication services as well as audiovidual services 
(both sectors bound with some limitations under the GATS). For courier services, a subsector 
which is partly bound under GATS, Singapore's general reservation in connection with possible 
future measures under the Agreement amounts to a step back as compared to its GATS 
commitments. 
4.38.  Annex 10.1 to the Agreement also contains regulatory principles applicable to 
telecommunication services, other than the cable or broadcast distribution of radio or television 
programming (see below). 
4.4.2.1.3  Constructions and related engineering services 
4.39.  This sector is bound under the GATS but with limitations. Under the Agreement, Singapore 
does not register any reservation for existing measures and does not reserve its right to take any 
future restrictive measure thus potentially improving access and national treatment for Costa 
Rican exports. 
4.4.2.1.4  Distribution services 
4.40.  For this sector, unbound under the GATS, Si ngapore reserves the right to maintain or adopt 
any measure affecting the supply of any products subject to import prohibition or non-automatic import licensing. It also registers some existing restrictions applicable to wholesale trade services 
and retailing services. WT/REG347/1 
 
- 28 - 
 
  4.4.2.1.5  Educational services 
4.41.  Educational services are unbound under GATS. Under the Agreement, Singapore registers 
an existing restriction only applicable to higher education services in relation to the training of doctors. It also reserves the right to maintain or adopt any measures affecting the supply of 
primary, general secondary and some segments of higher secondary education services. 
4.4.2.1.6  Environmental services 4.42.  This sector is unbound under the GATS. Under the Agreement, Singapore takes a general 
reservation with respect to possible future measures limited to new environmental services. It also 
registers a reservation for measures affecting waste water management, including, but not limited to, the collection, treatment and disposal of waste water.  
4.4.2.1.7  Financial services 
4.43.  Financial services (partially bound under the GATS, with some limitations) are not covered 
under the Agreement with respect to cross-border trade and only to a limited extend with respect 
to investment. Nevertheless, the Parties introduce a GATS floor provision in the Agreement. 
4.4.2.1.8  Health relate d and social services 
4.44.  Under GATS, Singapore did not take any commitment in relation to this sector. Because of 
the negative list approach chosen, liberalization commitments apply to the entire sector under the 
Agreement. Singapore nevertheless reserves the right to maintain or adopt any measures related 
to public services, which may affect the level of liberalization under this sector.  
4.4.2.1.9  Tourism and travel related services 4.45.  While this sector is partially bound under the GATS, with some limitations, Singapore 
registers a nationality or residency requirement for operating a food establishment in certain 
locations (through a licence). 
4.4.2.1.10  Recreational, cult ural and sporting services 
4.46.  Unbound under the GATS with the exception of some cultural services (libraries and 
museum in particular), this sector is fully covered under the Agreement, though with a limitation for gambling activities and a carryover of some of the GATS limitations for some cultural services. 
4.4.2.1.11  Transport services 
4.47.  Singapore has bound a limited part of mari time transport services under the GATS, though 
qualifying it with some restrictions. Under the Agreement, the whole sector is covered. Nevertheless, there are a number of restrictions, some of them far reaching, for most sub-sectors. 
A number of reservations by Singapore, such as , for instance, those covering ground handling 
services; air navigation services or traffic control services; airspace management; traffic rights; operation and management of airports and heliports; or public transports services, seem to fall 
outside of the coverage of the GATS. Singapore cl arifies that, as the scope of Chapter 10 of the 
Agreement excludes air services, including domestic and international air transportation services (whether scheduled or not) and related services in support of air services other than: (i) aircraft 
repair and maintenance services; (ii) the selling and marketing of air transport services; (iii) and 
computer reservation system services, a number of these reservations are introduced in the Agreement by Singapore to make clear that the concerned related services in support of air services are out of the scope of the Agreement. A ccording to Singapore, there is no intention to 
expand the coverage of the related services in support of air services beyond those covered in 
GATS. WT/REG347/1 
 
- 29 - 
 
  4.5  Regulatory provisions  
4.5.1  Domestic regulation 4.48.  Article 10.8 replicates the disciplines relating to qualification requirements, and procedures, 
technical standards and licensing requirements contai ned in Articles VI.3 and VI.4 of the GATS. It 
also binds the Parties to amend Article 10.8 to br ing the results of the negotiations related to 
Article VI.4 of GATS into effect under the Agreement, as appropriate. 
4.5.2  Recognition 
4.49.  Under Article 10.9, the Agreement mirrors the provisions in paragraphs 1 through 3 of 
Article VII of the GATS.  
4.5.3  Subsidies 4.50.  Chapter 10 does not apply to government procurement, subsidies or grants provided by a 
Party, including government-supported loans, guarantees and insurance, or to any conditions 
attached to the receipt or continued receipt of such subsidies or grants, whether or not such subsidies or grants are offered exclusively to domestic services, service consumers or service 
providers (Paragraph 3c of Article 10.2).  
4.5.4  Safeguards 4.51.  The Agreement does not contain any provision specific to safeguards in relation to trade in 
services or to investment, with the exception of the reservations contained in Article 10.11 (trade 
in services) and in Article 11.11 (investment), which mention the possibility to adopt or maintain restrictions to safeguard the balance of payments (BOP). Moreover, with respect to matters covered by the Agreement, including trade in services and investment, the Agreement confirms, in 
Article 18.5, that the Parties may adopt or maintain restrictions to safeguard the balance of 
payments in a manner consistent with the conditions established in the WTO Agreement and with the Articles of Agreement of the International Monetary Fund. BOP restrictions shall be applied on 
a non-discriminatory basis. 
4.5.5  Other 4.5.5.1  Investment 
4.52.  Chapter 11 of the Agreement covers investment. It does not apply to disputes arising out of 
events which occurred, or disputes which had been raised, prior to the entry into force of the Agreement. Only part of the provisions
30 contained in Chapter 11 apply to measures related to 
investments in financial institutions, as this sector is, to a large extent, excluded from the 
coverage of Chapter 11. Moreover, the rights and obligations of the Parties with respect to 
investors and investments in telecommunications services shall be governed by Chapter 11 and Annex 10.1. In the event of any inconsistency between Chapter 11 and another Chapter of the 
Agreement, the other Chapter shall prevail over Ch apter 11 to the extent of the inconsistency.  
4.53.  As already indicated above, Chapter 11 contains provisions on denial of benefits 
(Article 11.14); national treatment (Article 11.4); MFN (Article 11.5); minimum standard of 
treatment (Article 11.6); compensation for losses (Article 11.7); performance requirements 
(Article 11.8); special formalities and information requirements (Article 9); expropriation and nationalisation (Article 11.10); senior management and boards of directors (Article 11.12); and transfers (Article 11.11). Non-conforming measures are listed in Annexes I and II to the 
Agreement.  
                                               
30 The applicable provisions relate to: compensation for losses (Article 11.7); special formalities and 
information requirements (Article 11.9); expropriation and nationalization (Article 11.10); transfers 
(Article 11.11); senior management and boards of directors (Art icle 11.12); denial of benefits (Article 11.14); 
and investor-State dispute settlement (Article 11.16).  WT/REG347/1 
 
- 30 - 
 
  4.54.  According to Article 11.6, each Party shall accord to investments of investors of the other 
party treatment in accordance with customary international law minimum standard of treatment of aliens, including fair and equitable treatment and full protection and security. Both concepts are defined in Chapter 11. In case the investments of investors of one Party in the territory of the 
other Party suffer losses owing to war or other armed conflict, revolution, a state of national 
emergency, insurrection, riot or any other similar event, national treatment shall be granted as regards restitution, indemnification, compensation or other settlement (Article 11.7). 
4.55.  Nothing in the provision covering national treatment (Article 11.4) shall impede a Party from 
taking measures that prescribe special formalities in connection with investments, such as residency requirements or requirements for investors to be legally constituted, provided that such formalities do not materially impair the protections afforded by a Party to investors of the other 
Party and investments of investors of the other Party pursuant to Chapter 11. Moreover, nothing in 
the provisions covering national treatment and MF N (Article 11.5) prevents a Party to require the 
provision of information concerning investment solely for informational or statistical purposes. 
Confidential business information shall nevertheless be protected. 
4.56.  Expropriation or nationalization shall not be made, unless such measure is taken on a 
non-discriminatory basis, for a public purpose, in accordance with due process of law and the 
compliance of minimum standard treatment, and upon payment of a prompt, adequate and 
effective compensation
31 (Article 11.10).32 
4.57.  Chapter 11 also contains provisions on subrogation (Article 11.15), and establishes an 
investor-State dispute settlement mechanism (Article 11.16), which sets out arbitration rules. 
Arbitral awards shall be final and binding an d each party shall ensure the recognition and 
enforcement of the arbitral award in accordance with its laws.  
4.5.5.2  Monopolies and Ex clusive Service Suppliers 
4.58.  Article 10.10 reiterates the main disciplines contained in Paragraphs 1, 2, and 5 of 
Article VIII of the GATS and applies it to the bilateral trade relations between the Parties. 
Moreover, if a Party has reason to believe that a monopoly supplier of a service of the other Party 
is acting in a manner inconsistent with these rules, it may request the other Party establishing, 
maintaining or authorizing such supplier to provide specific information concerning the relevant operations. 
4.5.5.3  Transfers and Payments 
4.59.  Article 10.11 contains rules and disciplines applying to transfers and payments relating to 
cross-border provisions of services. In relation to investment, Article 11.11 contains similar but adjusted rules and disciplines applicable to the tran sfers relating to investment of an investor of 
the other Party. 
4.6  Sector specific provisions on trade in services 4.6.1   Financial services 
4.60.  With respect to cross-border trade in services, financial services
33 are not coved by the rules 
and disciplines of Chapter 10 (trade in services).  However, the Parties reaffirm their commitments 
under the GATS with respect to financial services.  
4.61.  With respect to investment, the rules and disciplines contained in Chapter 11 (investment) 
shall not apply to measures adopted or maintained by a Party in respect of investors of the other 
Party and investments of such investors in the financial institutions in the other Party except for the provisions covering compensation for losses (Article 11.7); special formalities and information 
                                               
31 Article 11.10 does not apply to the issuance of compulsory licences granted in relation to intellectual 
property rights, or to the revocation, limitation or creation of IPRs, to the extent that such issuance, 
revocation, limitation or creation is consistent with the TRIPS Agreement. 
32 Annex 11.1 provides for the parties shared underst andings which shall guide them when interpreting 
the disciplines contained in Article 11.10. 
33 "Financial services" is as define d in subparagraph 5(a) of the Anne x on Financial Services in GATS. WT/REG347/1 
 
- 31 - 
 
  requirements (Article 11.9); expropriation and nationalization (Article 11.10); transfers 
(Article 11.11); senior management and board of directors (Article 11.12); denial of benefits (Article 11.14); and investor-State dispute settlement (Article 11.16). Nevertheless, the Parties also reaffirm, in relation to investment, their commitments under GATS with respect to financial 
services. Moreover, notwithstanding any other provisions of Chapter 11, each Party may adopt or 
maintain measures for prudential reasons. Furthermore, notwithstanding the Agreement's 
provisions on transfers, a Party may prevent or limit transfers by a financial institution or financial 
services supplier to, or for the benefit of, an affiliate of or person related to such institution or 
supplier, through the equitable, non-discriminatory, and good faith application of measures relating to maintenance of the safety, soundness, in tegrity, or financial responsibility of financial 
institutions or financial services suppliers. The Parties keep their right to adopt or enforce 
measures necessary to secure compliance with laws or regulations that are not inconsistent with 
Chapter 11, including those relating to the preventi on of deceptive and fraudulent practices or to 
deal with the effects of a default on financial services contracts, subject to the requirement that 
such measures are not applied in a manner which would constitute a means of arbitrary or 
unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on investment in financial institutions. Finally, nothing in Chapter 11 shall be construed 
to require a Party to disclose information relating to the affairs and accounts of individual 
consumers or any confidential or proprietary information in the possession of public entities. 
4.6.2  Telecommunication services 4.62.   Annex 10.1 sets out the regulatory princi ples applicable to telecommunications services, 
other than the cable or broadcast distribution of radio or television programming. The Annex does 
not create market access rights or obligations.  In the event of inconsistency between the Annex 
and any Chapter of the Agreement, Annex 10.1 preva ils to the extent of such inconsistency. The 
Annex contains provisions on universal service; independence of regulatory authority; 
transparency; allocation and use of scarce resources; interconnection; access to and use of the network; competition, submarine cable systems, an d flexibility in the choice of technologies. The 
disciplines of Annex 10.1 replicate some of the WTO rules contained in the Annex on 
telecommunications. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  In addition to the provisions on transparen cy in specific parts of the Agreement, Chapter 15 
covers general transparency disciplines. Articles 15.2 through 15.6 contain requirements on the establishment of Contact Points; publication; notification and provision of information; 
administrative proceedings; and review and appeal of final administrative actions regarding 
matters covered by the Agreement. 
5.2  Current payments and capital movements 
5.2.  The Agreement does not contain a section specifically devoted to current payments and 
capital movements other than the related provisions referred to in relation with the above-mentioned disciplines applicable to trade in services (Chapter 10) and investments (Chapter 11). 
5.3  Exceptions 
5.3.1  General exceptions 5.3.  According to Article 18.2, and for the purposes of Chapters 2 (trade in goods); 3 (rules of 
origin); 4 (customs); 5 (SPS); 6 (TBT), Article XX of GATT 1994
34, and its interpretative notes are 
incorporated into and made part of the Agreemen t. For the purposes of Chapters 10 (trade in 
                                               
34 Including environmental measures necessary to pr otect human, animal, or plant life or health and 
measures relating to the conservation of livin g and non-living exhaustible natural resources. WT/REG347/1 
 
- 32 - 
 
  services); 11 (investment); and 12 (electronic commerce), Article XIV of GATS35 is incorporated 
into and made part of the Agreement. 
5.3.2  Security exceptions 5.4.  The Agreement also contains a security exception allowing a Party to not disclose any 
information which it determines to be contrary to its essential security interests or to apply 
measures that it considers necessary for the fulfilment of its obligations with respect to the maintenance or restoration of international peace or security, or the protection of its own essential 
security interests (Article 18.3). 
5.3.3  Taxation 5.5.  Nothing in the Agreement shall apply to taxation except as specifically provided by 
Article 18.4. In that context, Articles 11.10 (expropriation and nationalization) and 11.16 
(investor-State dispute settlement) shall apply to taxation measures to the extent that such a 
taxation measure constitutes exprop riation as provided for therein. 
5.4  Accession and Withdrawal 
5.6.  The Agreement does not contain any specific provisions on accession. Either Party may 
terminate the Agreement by written notification to the other Party. The termination shall take effect 6 months after the date of such notification (Article 19.5). 
5.5  Government procurement 
5.7.  Government procurement is covered by Chap ter 8 of the Agreement. Chapter 8 applies to all 
measures affecting trade in goods and services  for covered procurement by the entities as 
specified in Annex 8.1, which contains the Parties'  government procurement Schedules. In relation 
to services, the restrictions listed in the Parties' Schedules to Annexes I and II (non-conforming 
measures) in relation to trade in services as well as investment, remain applicable. Specific limitations related to construction services are also contained in Annex 8.1.A and 8.1.B. The 
thresholds defining which procurement is covered by the disciplines of Chapter 8 are also 
mentioned in Annex 8.1.  
5.8.  Nothing in the Agreement prevents the Parties from using government procurement to 
promote industrial development including measures to assist small and medium enterprises within 
their territory to gain access to the government procurement market. Moreover, nothing in the Agreement shall prevent a party from developing new procurement policies, procedures, or contractual means, provided that they are not inconsistent with Chapter 8. 
5.9.  National treatment and non-discrimination ar e established by Article 8.4. Moreover, through 
Articles 8.5 through 8.22, Chapter 8 contains disciplines, largely inspired by the provisions of the WTO Government Procurement Agreement (GPA), on procurement aspects such as: valuation of 
procurements; rules of origin; prohibition; offsets; publication of information on procurement 
measures
36, publication of notice of intended procurement; time limits for the tendering process; 
tender documentation and technical specifications; qualification of suppliers; ensuring integrity in 
procurement practices; limited tendering procedures; evaluation of tenders; information on 
awards; modifications and rectifications to co verage; transparency; electronic procurement; 
challenge procedures; exceptions; and non-disclosure of certain information. 
5.10.  While Costa Rica is not a Party to the GPA, Singapore is bound by it to the other parties to 
the plurilateral agreement. Singapore's commitments towards Costa Rica in the Agreement are 
identical to those made in the context of the GPA. 
                                               
35 Including environmental measures necessary to protect human, animal, or plant life or health. 
36 The officially designated elec tronic media for the publication of information on government 
procurement are listed, for both Parties, in Annex 8.2 to the Agreement. WT/REG347/1 
 
- 33 - 
 
  5.6  Intellectual property rights and innovation 
5.11.  Chapter 13 of the Agreement covers intell ectual property and innovation. The Agreement 
essentially reaffirms commitments established in existing international agreements in the field of intellectual property rights (IPRs), to which both are party, in particular the TRIPS Agreement. 
While each Party shall establish and maintain transparent IPR regimes, nothing in Chapter 13 shall 
prevent the adoption of appropriate measures to prevent the abuse of IPRs by right holders or 
practices that unreasonably restrain trade or the international transfer of technology or practices 
that have an adverse effect on competition, as long as such measures are consistent with each 
Party's international obligations and national legislation.  
5.12.  On genetic resources, traditional knowledge and folklore (Article 13.3), the Parties 
acknowledge and reaffirm the principles and provisio ns established in the Convention on Biological 
Diversity (hereinafter the Convention) adopted on 5 June 1992 and encourage a mutually 
supportive relationship between the TRIPS Agreement and the Convention. 
5.13.  On patents and public health (Article 13.4), the Parties recognize the principles established 
in the Doha Declaration on the TRIPS Agreement an d Public Health (hereinafter the Declaration) 
adopted on 14 November 2001. They also shall respect the Decision of the WTO General Council of 30 August 2003 on the Implementation of Paragraph 6 of the Declaration, as well as the Protocol 
Amending the TRIPS Agreement, of 6 December 2005. 
5.14.  On geographic indications (hereinafter GIs) , the Parties recognize the importance of GIs and 
reaffirm the obligations in the TRIPS Agreement in relation to Articles 22, 23 and 24 on GIs and shall provide for the protection of GIs in their domestic laws consistent with the TRIPS Agreement 
(Article 13.5). The Parties agree to launch future negotiations through the Free Trade 
Commission
37 for the inclusion of a list of terms that are recognized as GIs for agricultural 
products in the respective Party, within the me aning of Article 22.1 of the TRIPS Agreement. In 
that regard, the Parties acknowledge that GIs in an y such lists will be recognized and protected in 
each Party only to the extent permitted by and according to terms and conditions set out in its 
domestic laws. 
5.15.  Article 13.6 lists areas of cooperation in in tellectual property for the Parties which shall be 
subject to the availably of resources in each Party and carried out under mutually acceptable 
terms. 
5.7  Others 
5.7.1  Competition Policy 
5.16.  In Chapter 9 of the Agreement, the Parties agree to promote competition by adopting or 
maintain national competition laws that proscribe anti-competitive practices38 in their territories 
and to take measures to counter such practices. Each Party shall maintain one or more authorities 
responsible for enforcing measures to promote competition and for the enforcement of its competition laws. The Parties commit to cooperation on competition law and policy development. 
They also agree to consider issues of concern related to Chapter 9 and to consult on these 
matters, at the request of a Party. The provisions on competition policy also contain disciplines on transparency and on requests for information.  
5.17.  Nothing in Chapter 9 permits a Party to challenge any decision made by any authority of the 
other Party in enforcing the applicable competition laws. Moreover, neither Party shall have 
recourse to any dispute settlement procedures under the Agreement for any issue arising from or relating to Chapter 9. 
                                               
37 See section 5.9 of this factual presentation on the institutional framework. 
38 For purposes of Chapter 9, "anti-competitive practices" include, but are not limited to: a) 
anti-competitive horizontal arrangements between compet itors; b) abuse of dominant  position or substantial 
market power; and (c) an ti-competitive mergers and acquisitions or economic concentrations.  WT/REG347/1 
 
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  5.7.2  Electronic Commerce 
5.18.  Chapter 12 contains disciplines agreed by the Parties on electronic commerce. It however 
does not prevent a Party from imposing internal taxes, directly or indirectly, on digital products39, 
provided they are imposed in a manner consistent with the Agreement.  
5.19.  The Parties confirm that measures affecting the supply of a service using electronic means40 
fall within the scope of the obligations contained in the relevant provisions of Chapter 10 (trade in Services) and in Chapter 11 (investment), subject to any exceptions or non-conforming measures 
set out in the Agreement (See above, Section 4 of  the factual presentation). Under Article 12.4, 
the Parties commit to the non-discriminatory treatment (both MFN and national treatments) of digital products transmitted electronically, registered non-conforming measures being however reserved. They also agree that neither Party shall impose customs duties, fees, or other charges 
on or in connection with the importation or exportation of digital products by electronic 
transmission. These commitments do not, however, apply to measures affecting broadcasting services, including the electronic transmission of a series of text, video, images, sound recordings, 
and other products scheduled by a content provider for aural and/or visual reception, and for 
which the content consumer has no choice over the scheduling of the series. 
5.20.  With regard to the valuation of products imported by electronic transmission, the customs 
value of an imported carrier medium bearing a di gital product shall be determined based on the 
cost or value of the carrier medium alone, without regard to the cost or value of the digital product stored on the carrier medium. 
5.21.  Chapter 12 also contain transparency and cooperation provisions (Articles 12.5 and 12.6). 
5.7.3  Cooperation, promotion an d enhancement of trade relations 
5.22.  In Chapter 14 of the Agreement, the Pa rties identify areas and programs of mutual 
assistance including: small and medium enterprises; science and technology, innovation, 
technology and knowledge transfer, and entrepre neurship; export promotion and attraction of 
investments; culture, sports and recreation activities; agro-industrial cooperation; environmental cooperation; labour cooperation; as well as othe r cooperation areas such as health, infrastructure 
(ports, airports and roads), dispute settlement and information communication technology. To 
facilitate the management of cooperation activities, communications, follow-up mechanisms and specific cooperation programs, the Parties shall maintain contact points, which are identified in Article 14.11. 
5.8  Dispute settlement 
5.23.   Chapter 17 of the Agreement sets out the procedures and institutional arrangements that 
apply in cases of disputes between the Parties regarding questions of interpretation or application 
of the Agreement or in case a Party challenges th e consistency of a measure by the other Party or 
if a Party considers that the other Party has otherwise failed to carry out its obligations under the Agreement. At any time, the Parties shall nevert heless make every attempt through cooperation, 
consultations or other means to arrive at a mutually satisfactory resolution of any matter that 
might affect the operation of the Agreement. Good offices, conciliation and mediation may also be requested at any time by either Party (Article 17.5). 
5.24.  Article 17.3 contains "forum shopping" as well as "forum exclusion" clauses for matters 
falling under the Agreement and the WTO Agreem ent or any other agreement to which both 
Parties are party. 
                                               
39 The term "digital products" means computer prog rams, text, video, images, sound recordings, and 
other products that are digitally en coded, regardless of whether they are fixed on a carrier medium or 
transmitted electronically. For greater certainty, "digital  products" do not include di gitized representations of 
financial instruments. 
40 The term "using electronic means" means employing computer processing. The term "electronic 
transmission" or "transmitted electron ically" means the transfer of digita l products using any electromagnetic 
or photonic means.  WT/REG347/1 
 
- 35 - 
 
  5.25.  Chapter 17 provides for detailed steps in the process for dispute settlement, the salient 
features of which are described in Chart 5.1 below. If the Parties fail to resolve a dispute through consultations (Article 17.4), they may refer the matter to a Panel established in conformity with the modalities contained in Articles 17.6 through 17.9. On request of a Party, or on its own 
initiative, unless both Parties disapprove, the Panel may seek information and technical advice 
from any person or body that it deems appropriate (Article 17.10). A Panel shall issue a confidential initial report (Article 17.11) within 90 days, and within 50 days in the case of 
perishable goods, after its establishment. The final report (Article 17.12) shall be issued within 30 
days of notification of the initial report and may incorporate elements of the written comments submitted by a Party, as the Panel deems appropriate. The Panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the 
matter shall be decided by majority vote, with separate opinions remaining possible. At any time, 
the Parties may agree to suspend the work of the Panel. In case the work of the Panel has been 
suspended for more than 12 months, the Terms of Reference of the Panel shall lapse unless the 
Parties agree otherwise (Article 17.14). The report of the Panel shall be final and shall not add to 
or diminish the rights and obligations of the Parties under the Agreement. Either Party may 
however, within 10 days of the notification of the final report, submit a written request to the 
Panel for clarification (Article 17.13). The Parties shall release the final report to the public within 
15 days after the final report is notified or 7 days after the clarification. On receipt of the final report, the Party complained against shall, withou t delay, take any measure necessary to comply 
in good faith with the final report, though a reasonable period may be agreed by the Parties or, in 
certain cases, determined by the original Panel if requested to rule on the matter (Article 17.15).  
5.26.  The Party complained against shall noti fy the complaining Party by the end of the 
reasonable period of time of any measure that it has taken to comply with the final report. In the 
event of disagreement between the Parties concerni ng the existence or the consistency of such a 
measure, the complaining Party may request the original Panel to rule on the matter. (Article 17.16). 
5.27.  In case of non-implementation (Article 17.17), the Party complained against shall enter into 
negotiations with the other Party with a view to finding mutually acceptable compensation. In the absence of a successful result of such negotiations, the complaining Party may notify the other Party that it intends to suspend the application of  benefits of equivalent effect. Such suspension 
may take effect 30 days after the date of notification. In case of further disagreement, the original 
Panel may be reconvened to determine the level of benefits it considers to be of equivalent effect. For cases where a suspension of benefits has taken place, provisions on compliance review are 
contained in Article 17.18. 
Chart 5.1 Specific Dispute Settlement Me chanism established by the Agreement 
 
 Consultations (Art. 17.4) 
Establishment of a Panel  
(Art. 17.6) 
Proceedings (Art. 17.9, 17.10)  
Final Report of the Panel  
(Art. 17.12) Initial Report to the Parties  
(Art. 17.11) 
Implementation 
(Art. 17.15) Suspension of benefits  
(Art. 17.17) 
Review of compliance  
(Art. 17.16) Non-Implementation 
(Art. 17.17) 
Review of suspension of 
benefits (Art. 17.18) Request for clarification 
(Art. 17.13) 
Compensation 
(Art. 17.17) WT/REG347/1 
 
- 36 - 
 
  5.28.  In relation to the administration of dispute settlement proceedings, each Party shall, 
according to Article 16.3, designate an office that shall provide administrative assistance to the panels established under Chapter 17 and preform such other administrative functions as the free trade Commission may direct; and notify the Commission of the location of its designated office.
41 
Each Party shall be responsible for the operation and costs of its designated office42, and its own 
expenses and legal costs incurred in dispute settlement proceedings.  
5.9  Institutional framework 
5.29.  The Agreement establishes a Free Trade Commission (hereinafter the Commission). The 
Commission shall: supervise the operation and im plementation of the Agreement; oversee the 
further elaboration of the Agreement; seek to resolve disputes that may arise regarding the interpretation or application of the Agreement
43; supervise the work of any committees, working 
groups or coordinators under the Agreement; and consider any other matter that may affect the 
operation of the Agreement.44 Among other prerogatives, the Commission may modify, in 
fulfilment of the Agreement's objectiv es, a number of Appendixes and Annexes.45 All decisions by 
the Commission shall be adopted by consensus.46 
5.30.  The Parties shall also appoint a free trade agreement coordinator.47 The coordinators shall 
work jointly to develop agendas and make other preparations for Commission meetings, and shall 
follow up on Commission decisions, as appropriate (Article 16.2).  
5.10  Relationship with other agreements concluded by the Parties 5.31.  The Parties reaffirm their existing rights and obligations with respect to each other under 
the WTO Agreement and other existing agreements to  which they are both a party. In the event of 
inconsistency between these agreements and the Agreement, the Agreement shall prevail to the 
extent of the inconsistency, except as otherwise provided in the Agreement (Article 1.3). If any 
provision of the WTO Agreement that the Parties have incorporated into the Agreement is 
amended, the Parties shall consult with a view  to amending the relevant provision of the 
Agreement, as appropriate (Article 19.3). 
5.32.  Table 5.1 below shows the Parties' RTAs, notified and non-notified, other than the 
Agreement. 
                                               
41 No designations have taken place yet. 
42 The remuneration and payment of expenses that will  be paid in dispute settlement proceedings shall 
be established as set out in Article 16.1 (on the Free Trade Commission) and  in conformity with elements contained in Annex 16.2 
43 See also section 5.8 of the factual presentation on dispute settlement. 
44 The Commission shall also establish the amount of remuneration and expenses that will be paid in 
dispute settlement proceedings in conformity with the guidelines contained in Annex 16.2 to the Agreement. 
45 Appendix to Annex 2.1 (acceleration of tariff elimination); Annex 3.1 (exceptions for the general rule 
of origin under Article 3.5); Annex 4.1 (data elements to  be included in the Certification of Origin); Annexes 
8.1 (government procurement Schedules) and 8.2 (officially  designated electronic media for the publication of 
information on government procur ement); and Annexes I and II (non-conforming measures) on trade in 
services and investment. 
46 In the case of Costa Rica, decisions of the Commission under Article 16.1.3(b) (modifications of 
Appendixes and Annexes by a decision of the Commission) will be equi valent to the instru ment referred to in 
Article 121.4, third paragraph ("Protocolo de Menor Rango") of the "Constitución Política de la República de 
Costa Rica". 
47 The Free Trade Coordinator for Costa Rica shall be  the Director General of Foreign Trade and his 
Singaporean homolog shall be the Director of the Emergi ng Markets Division (Ministry of Trade and Industry). WT/REG347/1 
 
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  Table 5.1 Costa Rica and Singapore: Part icipation in other RTAs (notified and 
non-notified, in force), as of 20 January 2014 
RTA Name Date of 
entry into 
force Coverage Date of 
notification WTO Legal Cover 
COSTA RICA 
European Union - Central 
America  01-Oct-13a Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Jul-13b Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Costa Rica - Peru 01-Jun-13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
China - Costa Rica 01-Aug-11 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Panama - Costa Rica (Panama – 
Central America) 23-Nov-08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central 
America - United States Free Trade Agreement (CAFTA-DR) 01-Mar-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Canada - Costa Rica 01-Nov-02 Goods 2003 GATT Art. XXIV 
Chile - Costa Rica (Chile – 
Central America) 15-Feb-02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central 
America 04-Oct-01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Costa Rica - Mexico 01-Jan-95b Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Central American Common 
Market (CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CARICOM - Costa Rica 15-Nov-05 Goods Not notified 
Venezuela - Costa Rica [LAIA, 
AAP.A25TM N°26] 27-Jul-94 Goods Not notified 
CACM - Accession of Panama 06-May-13 Goods Not notified 
SINGAPORE 
ASEAN - Republic of Korea 01-Jan-10 
01-May-09 Goods  
Services 2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V 
ASEAN - Australia - New 
Zealand 01-Jan-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
ASEAN - India 01-Jan-10 Goods 2010 Enabling Clause 
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) 28-Jan-92 Goods 1992 Enabling Clause 
Global System of Trade Preferences among Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Singapore – Gulf Cooperation 
Council (GCC) 01-Sep-13 Goods & Services Not notified 
a The notifications made in February 2013 (see WT/R EG332/N/1 and S/C/N/680) states that: "Provisional 
application of the Agreement by all si gnatory parties is expected in the course of the second quarter 2013"; 
Further notifications to confirm the specific date of entry into force between the EU and Costa Rica, and other Central American countries are awaited. b Mexico - Central America: in force with El Salvad or, Nicaragua (01.09.12), Honduras (01.01.13), Costa Rica 
(01.07.13) and Guatemala (01.09.13). According to Article 21.7 of the Agreement, older bilateral Agreements between Mexico and Central American countries have, or are to become inactive upon entry into force of this Agreement.  Source: WTO Secretariat. WT/REG347/1 
 
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  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The Costa Rican Market 
1. Annex Table A1.1 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs by Costa Rica for imports from Singapore and its 
MFN rates at the entry into force of the Agreement. Costa Rica's average applied MFN rate in 2013, before the entry into force of the Agreemen t, was 6.8% (for all products). MFN duty-free 
tariff lines accounted for 2.2% of all tariff lines. At the date of entry into force of the Agreement 
(1 July 2013), Singaporean exporters enjoyed an  absolute margin of preference of 5.8% vis-à-vis  
the prevailing MFN tariff; 11.8% for agricultural  goods and 4.7% for non-agricultural products. 
Immediately after the entry into force of the Agreem ent, the share of duty free lines applicable to 
imports from Singapore was 92.8% overall, 89.5% for agricultural products and 93.3% for non-
agricultural products. At the end of the implemen tation period in 2022, Singaporean exporters will 
face zero duties for 100% of Costa Rica's tariff. 
Table A1.1 Costa Rica: Indicators of MFN tari ff rates and preferential rates for imports 
from Singapore  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2013 6.8 6.9 2.2 13.6 13.6 0.0 5.6 5.8 2.5 
Singapore 2013 1.0 10.9 90.6 1.8 17.4 89.5 0.9 9.7 90.8 
 2014 0.9 9.7 90.6 1.6 15.5 89.5 0.8 8.6 90.8 
 2015 0.8 8.5 90.6 1.4 13.5 89.5 0.7 7.5 90.8 
 2016 0.7 7.3 90.6 1.2 11.6 89.5 0.6 6.4 90.8 
 2017 0.6 6.1 90.7 1.0 9.7 89.5 0.5 5.4 91.0 
 2018 0.5 4.9 90.7 0.8 7.7 89.5 0.4 4.4 91.0 
 2019 0.3 3.7 90.7 0.6 5.8 89.5 0.3 3.3 91.0 
 2020 0.2 2.5 90.7 0.4 3.9 89.5 0.2 2.2 91.0 
 2021 0.1 1.2 90.7 0.2 1.9 89.5 0.1 1.1 91.0 
 2022 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition. Note: Based on HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Costa Rica. 
 
2. Annex Table A1.2 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Singapore's top 25 global exports. During 2010-2012 Singapore's 
top 25 exports accounted for 53.9% of its global exports, corresponding to 91 lines at the 
HS eight-digit level, 41 of which were duty free.  The 41 remaining dutiable lines became duty free 
immediately at the entry into force of the Agreement, in July 2013.  WT/REG347/1 
 
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  Table A1.2 Costa Rica: Market access opport unities under the agreement for Singapore's 
top 25 exports 
Singapore's top export products in 2010-2012  Access Conditions to Costa Rica's 
import markets  
MFN (2013)  
Duty-free 
in 2013 HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN 
applied 
rate (%)  
Duty-
free 
Dutiable  
271019 Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere 
specified or including, containing by 
weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 12.0 3.1 6 7 7 
854239 Other Electronic integrated circuits, 
other than Amplifiers or Memories or 
Processors and controllers 9.2 0.2 5 1 1 
854231 -- processors and controllers, whether 
or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 6.8 0.2 5 1 1 
271011 -- light oils and preparations 5.7 3.6 1 6 6 
847330 - parts and accessories of the 
machines of heading 84.71 2.6 0.0 1   
844399 Other parts and accessories for 
printing machinery excluding 8443.91 1.7 0.5  1 1 
854232 -- memories 1.7 0.2 5 1 1 
854290 - parts 1.6 0.0 1   
880330 - other parts of aeroplanes or 
helicopters 1.3 1.0  1 1 
847170 - storage units 1.1 0.0 1   
300490 Medicaments (excluding goods of 
heading 30.02/30.05/30.06/3004.10-3004.50) consisting of mixed/unmixed products for therap eutic/prophylactic 
uses, put up in measured doses (including those in the form of transdermal administration systems)in forms or packings for retail sale 1.1 3.5  6 6 
851712 -- telephones for cellular networks or 
for other wireless networks 1.1 0.0 1   
843143 -- parts for boring or sinking 
machinery of subheading 8430.41 or 8430.49 1.0 1.0  1 1 
890520 - floating or submersible drilling or 
production platforms 0.8 1.0  1 1 
292249 Amino-acids, other than those 
containing > one kind of oxygen function, & their esters (excluding of 2922.41-2922.44); salts thereof 0.7 1.0  1 1 
711319 -- of other precious metal, whether or 
not plated or clad with precious metal 0.7 15.0  1 1 
854390 - parts 0.7 0.3 1 1 1 
851762 -- machines for the reception, 
conversion and transmission or 
regeneration of voic e, images or other 
data, including switching and routing 
apparatus 0.7 0.0 1   
852340 - optical media 0.6 1.8 3 3 3 
854190 - parts 0.6 0.0 1   WT/REG347/1 
 
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  Singapore's top export products in 2010-2012  Access Conditions to Costa Rica's 
import markets  
MFN (2013)  
Duty-free 
in 2013 HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN 
applied 
rate (%)  
Duty-
free 
Dutiable  
852329 Magnetic media for the recording of 
sound or of other phenomena, but excl. products of Ch. 37., other than cards incorporating a magnetic stripe 0.6 4.1 7 7 7 
293500 Sulphonamides. 0.5 1.0  1 1 
854129 Transistors (excluding photosensitive 
transistors), other than those with a dissipation rate of <1W 0.5 0.0 1   
853690 - other apparatus 0.5 0.0 1   
390230 - propylene copolymers 0.4 1.0  1 1 
Total of above 53.9  41 41 41 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by Co sta Rica and WTO-IDB and UNSD, Comtrade database. 
 
The Singaporean Market 
3. Annex Table A1.3 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs by Singapore for imports from Costa Rica and its 
MFN rates at the entry into force of the Agreemen t. Almost 100% of Singapore's applied MFN rate 
in 2013 was duty free. Specific customs duties were levied for only 6 tariff lines, corresponding to 
some agricultural products (alcoholic beverages). At the entry into force of the Agreement, all 
tariff lines became duty free for Costa Rican exports. Consequently, Costa Rican exporters enjoyed an absolute margin of preference vis-à-vis  the prevailing MFN tariff for these 6 tariff lines.  
Table A1.3 Singapore: Indicators of MFN tari ff rates and preferential rates for imports 
from Costa Rica 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2013 0.0 0.0 99.9 0.0 0.0 99.5 0.0 0.0 100.0 
Costa 
Rica 2013 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition. Note: Based on HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Singapore. 
 
4. Annex Table A1.4 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Costa Rica's top 25 global exports. During 2010-2012, Costa Rica's 
top 25 exports accounted for 63.1% of its global exports; these corresponded to 118 lines at the 
HS eight-digit level. Before the entry into force of the Agreement all these tariff lines were already duty free on an MFN basis. With the entry into force of the Agreement, in July 2013, the entire 
Singaporean tariff was duty fr ee for Costa Rican exporters. WT/REG347/1 
 
- 41 - 
 
  Table A1.4 Singapore: Market access opportuni ties under the Agreement for Costa Rica's 
top 25 exports  
Costa Rica's top export products in 2010-2012  Access Conditions to 
Singapore's import markets  
MFN (2013)  
HS number and description of the product  Share in global 
exports (%)  Average MFN 
applied rate (%)  Number of  
duty-free 
lines  
854231 -- processors and controllers, whether 
or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other 
circuits 15.9 0.0 1 
080430 - pineapples 7.2 0.0 1 
901839 -- other syringes, needles, catheters, 
cannulae and the like 5.5 0.0 2 
080310 - bananas, including plantains 3.5 0.0 1 
080390 - other bananas, fresh or dried 3.5 0.0 1 
090111 -- not decaffeinated 3.5 0.0 2 
210690 - other food preparations other than 
protein concentrates and textured protein substances 2.9 0.0 26 
847330 - parts and accessories of the 
machines of heading 84.71 2.7 0.0 2 
901890 - other instruments and appliances 2.7 0.0 3 
902139 -- other artificial parts of the body 
other than artificial joints 2.1 0.0 1 
300490 Medicaments (excluding goods of 
heading 30.02, 30.05 or 30.06, 3004.10-3004.50) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including thos e in the form of 
transdermal administration systems) in 
forms of packings for retail sale 1.8 0.0 29 
854449 Other electric conduc tors, for a voltage 
not > 1,000 V, not fitted with 
connectors 1.5 0.0 12 
961900 Sanitary towels (pads) and tampons, 
napkins and napkin liners for babies and similar articles, of any material. 1.4 0.0 4 
401110 - of a kind used on motor cars 
(including station wagons and racing 
cars) 1.4 0.0 1 
151110 - crude oil 1.3 0.0 1 
620711 -- of cotton 0.9 0.0 1 
080719 Melons (excl. watermelons), fresh 0.7 0.0 1 
701090 Carboys, bottles, flasks, jars, pots, 
phials and other containers, of glass, 
of a kind used for the conveyance or 
packing of goods; preserving jars of 
glass 0.7 0.0 3 
902190 Appliances which are worn or carried 
or implanted in the body, to compensate for a defect or disability (excluding 9021.10-9021.50) 0.6 0.0 1 
060290 Live plants, n.e.s., including their 
roots; mushroom spawn 0.6 0.0 7 
071410 - manioc (cassava) 0.6 0.0 4 
210390 Sauces and preparations therefor, 
n.e.s.; mixed condiments and mixed 
seasonings, n.e.s. 0.6 0.0 4 
853669 Plugs and sockets for a voltage not 
>1000V 0.6 0.0 8 
720449 Ferrous waste and scrap (excluding 
7204.10-7204.41) 0.6 0.0 1 WT/REG347/1 
 
- 42 - 
 
  Costa Rica's top export products in 2010-2012  Access Conditions to 
Singapore's import markets  
MFN (2013)  
HS number and description of the product  Share in global 
exports (%)  Average MFN 
applied rate (%)  Number of  
duty-free 
lines  
200949 Pineapple juice (excluding 2009.41), 
unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter 0.5 0.0 1 
Total of above 63.1  118 
 
Note: Based on HS 2012 nomenclature.  Source: WTO estimates based on data provided by Singapore, WTO-IDB and UNSD, Comtrade database. 
 
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