WORLD TRADE  
ORGANIZATION  WT/REG185/1 
18 February 2005 
 
 (05-0681) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN THAILAND AND AUSTRALIA 
 
  The following communication, dated 27 December 2004, is being circulated at the request of 
the Delegations of Thailand and Australia.
* 
 
_______________ 
 
 
THAILAND-AUSTRALIA FREE TRADE AGREEMENT 
 
PREAMBLE  
  The  Kingdom of Thailand and Australia , hereinafter in this Agreement referred to as the 
“Parties”;  
 Inspired  by the traditional links of friendship and the cordial relations which exist between 
them, and their shared regional interests and ties;   Aware  of the increasing importance of trade and inv estment for the future prosperity of the 
economies of the Asia-Pacific region; 
  
 Conscious  that open, transparent and competitive markets are the key drivers of economic 
efficiency, innovation, wealth creation and consumer welfare;   Recognising  the importance of promoting the flow of capital for economic activity and 
development and aware of its role in expanding ec onomic relations between th em, particularly with 
respect to investment by investors of one Pa rty in the territory of the other Party;  
  Reaffirming  their willingness to strengthen and reinforce the multilateral trading system as 
reflected in the World Trade Organization (WTO);  
 Mindful  of their commitment to the Asia-Pacifi c Economic Cooperation (APEC) goals of free 
and open trade and investment;   Recalling  the contribution made to the development of  their bilateral trade relationship of the 
Trade Agreement between the Government  of the Kingdom of Thailand and the Government of 
Australia , done at Bangkok on 5 October 1979 and the Agreement on Economic Cooperation between 
the Government of the Kingdom of Thailand and the Government of Australia , done at Bangkok 6 
August 1990;  
                                                     
 
* The Annexes of the Agreement are available at the Secretariat for co nsultation by interested Members 
(office 1174). They are also availabl e at the following URL addresses: http://www.thaifta.com/fta thau.pdf  and 
http://www.dfat.gov.au/trade/nego tiations/aust-thai/tafta_toc.html . WT/REG185/1 
Page 2  
 
 Further recalling  the Agreement on Development Cooperati on between the Government of 
the Kingdom of Thailand and the Government of Australia , done at Bangkok on 2 February 1989; and 
 Desiring  to strengthen the cooperative framework for the conduct of ec onomic relations to 
ensure it is dynamic and encourages br oader and deeper economic cooperation; 
 
 Have agreed  as follows: 
 
 
CHAPTER 1: OBJECTIVES AND DEFINITIONS 
 
Article 101 
 
Establishment Of The Free Trade Area
 
  The Parties hereby establish a free trade area consistent with Article XXIV of the General 
Agreement on Tariffs and Trade 1994  (GATT 1994) and Article V of the General Agreement on 
Trade in Services  (GATS). 
 
Article 102 
 
Objectives
 
 
 The objectives of the Parties in concluding this Agreement are:  
(a) to liberalise trade in goods and services a nd to create favourable conditions for the 
stimulation of trade and investment flows; 
(b) to build upon their commitments under the World Trade Organization and to support 
its efforts to create a predictable and more free and open global trading system; 
(c) to establish a program of cooperative activities in support of the aims of the 
Agreement; 
(d) to improve the efficiency and competitiveness of their economies; and 
(e) to support the wider liberalisation and fac ilitation process in APEC and in particular 
the efforts of all APEC economies to meet the Bogor goals of free and open trade and 
investment by 2010 at the latest for industri alised economies and 2020 at the latest for 
developing economies. 
Article 103 
 
General Definitions
 
  Unless otherwise defined, for the purposes of this Agreement:  
(a) “Agreement” means the Thailand-Australia Free Trade Agreement; 
(b) “APEC” means Asia-Pacific  Economic Cooperation; 
(c) “commercial presence” means any type of business or professional establishment, 
including through: 
(i) the constitution, acquisition or mainte nance of a juridical person; or  WT/REG185/1 
 Page 3 
 
 
(ii) the creation or maintenance of a branch or a representative office, 
  within the territory of a Party for the purpose of supplying a service; 
 
(d) “customs administration” means the competent authority that is responsible under the 
laws of a Party for the administration of  customs laws, regulations and policies; 
(e) “customs duties” includes any customs or import duty and a charge of any kind 
imposed in connection with the import of a good, including any form of surtax or surcharge in connection with such import, but does not include any: 
(i) charge equivalent to an internal tax imposed consistently with Article III (2) 
of GATT 1994; 
(ii) any anti-dumping or countervailing dut y applied consistently with the 
provisions of GATT 1994, the WTO Agreement on Implementation of Article 
VI of the General Agreement on Tariffs and Trade 1994 , and the WTO 
Agreement on Subsidies and Countervailing Measures ; and 
(iii) fee or other charge in connection with importing commensurate with the cost 
of services rendered; 
(f) “days” means calendar days; 
(g) “FTA Joint Commission” means the Fr ee Trade Agreement Joint Commission 
established under Article 1701 of this Agreement; 
(h) “GATS” means the General Agreement on Trade in Services , which is part of the 
WTO Agreement; 
(i) “GATT 1994” means the General Agreement on Tariffs and Trade 1994 , which is 
part of the WTO Agreement; 
(j) “government procurement” means the pro cess by which a government obtains the use 
of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sal e or resale, or use in the production or 
supply of goods or services for commercial sale or resale; 
(k) “Harmonised System” means the Harmonised Commodity Description and Coding 
System , including its General Rules of Inte rpretation, Section Notes and Chapter 
Notes, as adopted by the Parties in their respective tariff laws; 
(l) “investment” means every kind of asset, owned or controlled, directly or indirectly, 
by an investor, including but not limited to the following: 
(i) movable and immovable property, includi ng rights such as mortgages, liens 
and other pledges; 
(ii) shares, stocks, bonds and debentures and an y other form of participation in a 
juridical person; 
(iii) a claim to money or a claim to performance having economic value; WT/REG185/1 
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(iv) intellectual property rights, including rights with respect to copyright, 
patents, trademarks, trade names, industrial designs, trade secrets, know-how and goodwill; 
(v) business concessions and any other rights required to conduct economic 
activity and having economic value conf erred by law or under a contract, 
including concession to search for, cu ltivate, extract or exploit natural 
resources; and 
(vi) returns that are invested. 
For the purposes of this Agreement, a ny alteration of the form in which assets 
are invested or reinvested shall not affect their character as investments, provided that 
such altered investment is approved by the relevant Party if so required by its laws, 
regulations or policies; 
 
(m) “investor of a Party” means: 
(i) a juridical person of a Party; or 
(ii) a natural person who is a national or a permanent resident of a Party, 
that has made, is in the process of making, or is seeking to make an investment in the 
territory of the other Party; 
 
(n) “juridical person” means any legal entity duly constituted or otherwise organised 
under applicable law, whether for profit or otherwise, and whether privately owned or 
governmentally owned, including any corpora tion, association, trust, partnership, 
joint venture or sole proprietorship; 
(o) a juridical person is: 
(i) “owned” by persons of a Party if more than 50 percent of the equity interest 
in it is beneficially owned by persons of that Party; 
(ii) “controlled” by persons of a Party if su ch persons have the power to name a 
majority of its directors or otherwise to legally direct its actions; 
(p) “juridical person of a Party” means a ju ridical person duly constituted or otherwise 
organised under the applicable law of the Party; 
(q) “measure” includes any law, regulation, governmental procedure or requirement; 
(r) “non-originating material” means a material that does not qualify as originating in 
accordance with the relevant provisions of Chapter 4; 
(s) “originating goods” means goods that qualify as originating in accordance with the 
relevant provisions of Chapter 4; 
(t) “Parties” means the Kingdom of  Thailand and Australia; 
(u) “person” means a natural person or a juridical person;  WT/REG185/1 
 Page 5 
 
 
(v) “preferential tariff treatment” means the cust oms duty rate that is applicable to an 
originating good pursuant to Article 203 (3) of Chapter 2; 
(w)  “service supplier” means any person that supplies a service;1  
(x) “services” includes any services in any sector  or sub-sector except services supplied 
in the exercise of government authority; 
(y) “SPS Agreement” means the Agreement on the Application of Sanitary and 
Phytosanitary Measures , which is part of the WTO Agreement; 
(z) “TBT Agreement” means the Agreement on Technical Barriers to Trade , which is 
part of the WTO Agreement; 
(aa) “territory” means the territory of a Party as well as the exclusive economic zone, 
seabed and subsoil over which the Party exer cises sovereign rights or jurisdiction in 
accordance with international law; 
 (bb) “WTO” means the World Trade Organization;  
(cc) “WTO Agreement” means the Marrakesh Agreement Establishing the World Trade 
Organization , done on 15 April 1994; 
    (dd) “WTO Agreement on Textiles and Clothing” means the Agreement on Textiles and 
Clothing , which is part of the WTO Agreement; 
 
(ee)  “WTO Customs Valuation Agreement” means the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs and Trade 1994 , which is part of the 
WTO Agreement; and  
 (ff) “WTO Safeguards Agreement” means the Agreement on Safeguards , which is part of 
the WTO Agreement. 
 
Article 104 
 
Territorial Application
 
 
 The free trade area to which this Agreement a pplies consists of the Kingdom of Thailand and 
Australia.   
                                                     
 
1 Where the service is not supplied directly by a juridical person but through other forms of commercial 
presence such as a branch or a representative office, the service supplier (i.e. the juridical person) shall, 
nonetheless, through such presence be accorded the treatment provided for service suppliers under the 
Agreement. Such treatment shall be ex tended to the presence through which the service is supplied and need not 
be extended to any other parts of the supplier located  outside the territory where the service is supplied. WT/REG185/1 
Page 6  
 
CHAPTER 2: TRADE IN GOODS 
 
Article 201 
 
Scope
 
 
 Except as otherwise provided, this Chapter applies to trade in goods of a Party.  
Article 202 
 
National Treatment
 
  Each Party shall accord national treatment to the goods of the other Party in accordance with 
Article III of GATT 1994.  
Article 203 
 
Elimination Of Customs Duties
 
 1. The provisions of this Chapter concerning the elimination of customs duties on imports shall 
apply to goods originating in the territory of the Parties. 
2. A Party shall not increase an existing customs duty or introduce a new customs duty on 
imports of an originating good. 
3. Except as otherwise provided in this Agreement,  each Party shall progressively eliminate its 
customs duties on originating goods of the other Party in accordance with its Tariff Schedule at 
Annex 2.  The base rate and the interim rate of customs duty at each stage of reduction for an item are 
indicated for the item in each Party’s Schedule.  Reductions shall occur upon entry into force of the 
Agreement and thereafter on 1 January of each year, as provided for in each Party’s Schedule. 
4. Each Party may adopt or maintain import me asures to allocate in-quota imports made 
pursuant to a tariff quota set out in its Schedule,  provided that such measures do not have trade 
restrictive effects on imports additional to those caused by the imposition of the tariff quota. 
5. On the written request of the other Party, a Party applying or intending to apply measures 
pursuant to Paragraph 4 shall consult to consider a review of the administration of those measures. 
Article 204 
 
Accelerated Tariff Elimination
 
 
1. Each Party declares its readiness to eliminate its  customs duties more rapidly than is provided 
for in Article 203 or otherwise improve the conditio ns of access of origina ting goods if its general 
economic situation, and the econom ic situation of the economic s ector concerned, so permit. 
2. On the request of a Party, the Parties shall c onsult to consider accelerating the elimination of 
customs duties on originating goods as set out in Annex 2. 
3. An agreement by the Parties to accelerate th e elimination of customs duties on originating 
goods shall enter into force after the Parties have  exchanged written notification advising that they 
have completed necessary internal legal procedures  and on such date or dates as may be agreed 
between them.  WT/REG185/1 
 Page 7 
 
 
4. A Party may at any time accelerate unilate rally the elimination of customs duties on 
originating goods of the other Party set out in its Schedule. A Party considering doing so shall inform 
the other Party as early as practicable before the new rate of customs duties takes effect. 
Article 205 
 
Administrative Fees And Formalities  
  Each Party shall ensure, in accordance with Article VIII (1) of GATT 1994, that all fees and 
charges of whatever character (oth er than customs duties, charges equivalent to an internal tax or 
other internal charge applied consistently with  Article III (2) of GATT 1994, and anti-dumping and 
countervailing duties) imposed on or in connection with import or expor t are limited in amount to the 
approximate cost of services rendered and do not repr esent an indirect protection to domestic goods or 
a taxation on imports or exports for fiscal purposes.  
Article 206 
 
Anti-Dumping Measures
 
 1. With respect to the application of anti-dum ping measures, the Parties reaffirm their 
commitment to the provisions of the WTO Agreement on Implementation of Article VI of GATT 1994 . 
2. The Parties shall observe the following practices relating to anti-dumping: 
(a) on request of an exporter of the other Party, a Party’s investigating authority shall 
make available the timeframes, procedures and any documents necessary for the offering of an undertaking. A Party’s inv estigating authority shall extend reasonable 
consideration to price undertakings requ ested by exporters of the other Party.  
Furthermore, once a Party’s investiga ting authority recommends accepting a 
particular price undertaking the authority shall extend that undertaking to the decision 
maker who shall give positive considera tion to the investigative authority’s 
recommendation to the extent possible under the Party’s laws and regulations; and 
(b) the timeframe to be used for determini ng the volume of dumped imports in the 
investigation or review shall be repres entative of the imports of both dumped and 
non-dumped goods, for a reasonable period, and such reasonable period shall 
normally be 12 months and not less than six months except in exceptional 
circumstances. 
Article 207 
 
Subsidies And Countervailing Measures
 
 
 The Parties confirm their rights and obligations arising from the WTO Agreement on 
Subsidies and Countervailing Measures. 
 
Article 208 
 
Agricultural Export Subsidies  
 1. The Parties share the objective of the multila teral elimination of export subsidies for 
agricultural goods and shall work toward an agreem ent in the WTO to eliminate those subsidies and 
prevent the introduction in any form of any new export subsidies for agricultural goods. WT/REG185/1 
Page 8  
 
2. Consistently with their rights and obligations  under the WTO Agreement, neither Party shall 
introduce or maintain any export subsidy on any agri cultural good destined for the territory of the 
other Party. 
3. At the earliest possible time, a Party shall give  to the other Party advance notice of, and if 
requested shall consult on, any changes to relevant policies or measures. The Parties agree to enhance 
communication between their appropriate officials with a view to minimising trade distortions from 
such policies or measures.  Where the affected Pa rty identifies an adverse impact on its agriculture 
and food industries, the other Party shall take that impact into consideration. 
Article 209 
 
Non-Tariff Measures
 
 
1. Except as otherwise provided in this Agreemen t, a Party shall not adopt or maintain any 
prohibition or restriction on the import of any good of the other Party or on the export or sale for export of any good destined for the territory of the other Party, except in a ccordance with Article XI 
of GATT 1994. 
2. Each Party shall ensure the transparency of its non-tariff measures permitted in Paragraph 1 
and shall ensure that any such measures are not prep ared, adopted or applied with a view to or with 
the effect of creating unnecessary obstacles to trade between the Parties. 
 
CHAPTER 3: CUSTOMS PROCEDURES 
 
Article 301 
 
Purpose And Definitions
 
 
1. The purpose of this Chapter is to promote the objectives of this Agreement by simplifying and 
harmonising customs procedures and to ensure their proper application in relation to bilateral trade 
between the Parties. 
2. For the purposes of this Chapter, “customs pr ocedures” means the treatment applied by the 
customs administration of each Party to goods which are subject to customs control. 
Article 302 
 
Scope  
  This Chapter shall apply, in accordance with the Parties’ respective laws, regulations and 
policies, to customs procedures required for cl earance of goods traded between the Parties. 
 
Article 303 
 
Customs Valuation
 
  The Parties shall determine the customs value of goods traded between them in accordance 
with the provisions of Article VII of GATT 1994 and the WTO Customs Valuation Agreement. 
  WT/REG185/1 
 Page 9 
 
 
Article 304 
 
Customs Procedures And Facilitation  
 1. Customs procedures of both Parties shall confor m, where possible and to the extent permitted 
by their respective laws, regulations and polici es, to international standards and recommended 
practices. 
2. Each Party shall ensure that its customs proce dures and practices are predictable, consistent 
and transparent and facilitate trade. 
3. The customs administrations of both Parties shall periodically review their customs 
procedures with a view to their further simplifi cation and the development of further mutually 
beneficial arrangements to facilitate bilateral trade.  
Article 305 
 
Techniques And Use Of Cooperative Arrangements
 
 
1. To the extent permitted by their laws, regulations  and policies, the customs administrations of 
both Parties shall provide each other with mutual assistance in order to pr event breaches of customs 
legislation and for the protection of the economic,  fiscal, social and commercial interests of their 
respective countries, including ensuring appropr iate and efficient customs duty collection. 
2. Each Party shall endeavour to provide the othe r Party with advance notice of any significant 
modification of laws, regulations or policies governi ng importations that is likely to substantially 
affect the operation of this Agreement. 
Article 306 
 
Review And Appeal  
 
1. Each Party shall provide easily accessible processes  for administrative and judicial review of 
decisions taken by its customs administration. 
2. Requests for review of decisions taken by the cu stoms administration of a Party shall be made 
in writing or electronically, and shall be accompanie d by any information deemed useful to comply 
with the request. 
Article 307 
 
Advance Rulings  
 1. Subject to Paragraph 2, each Party shall provi de, in writing, advance tariff classification 
rulings (hereinafter referred as “pre-classificati on”) to a person described in Sub-paragraph 2(a). 
2. Each Party shall adopt or maintain procedures for pre-classification, which shall: 
(a) provide that an importer in its territory or an exporter or producer in the territory of 
the other Party may apply for pre-classifi cation before the importation of goods in 
question; WT/REG185/1 
Page 10  
 
(b) require that an applicant for pre-classifi cation provide a detailed description of the 
goods and all relevant information needed  to process an application for a pre-
classification; 
(c) provide that its customs administration may, at any time during the course of an 
evaluation of an application for pre-classifi cation, request that the applicant provide 
additional information within a specified period;  
(d) provide that pre-classification be based on the facts and circumstances presented by 
the applicant, and any other relevant in formation in the possession of the decision-
maker; and 
(e) provide that pre-classification be issued to the applicant expeditiously, or in any case 
within 30 working days of the receipt of all necessary information. 
3. A Party may reject requests for pre-classifica tion where the additional information requested 
by it in accordance with Sub-paragraph 2(c) is  not provided within the specified period. 
4. Subject to Paragraph 5, each Party shall apply a pre-classification to all importations of goods 
covered by the application for that pre-classification im ported into its territory within five years of the 
date the pre-classification is issued, or such other period as required by a Party’s laws, regulations or 
policies. 
5. A Party may modify or revoke a pre-classification upon a determination that the classification 
was based on an error of fact or law (including human error), or if there is a change in: 
(a) domestic law consistent w ith this Agreement; or 
(b) a material factor; or 
(c) the circumstances on which the ruling is based. 
Article 308 
 
Treatment Of Goods For Which A Cer tificate Of Origin Has Been Issued
 
 
1. The importing Party shall facilitate the importati on of goods for which a Certificate of Origin 
has been issued in accord ance with Chapter 4 of this Agreement to the greatest extent permitted under 
its laws, regulations and policies.  In particular, s ubject to Paragraphs 2 to 4, the importing Party shall 
not dispute the customs duty payable on such goods at the time of importation or entry for home consumption, provided they are imported and entere d in accordance with the relevant Certificate of 
Origin. 
2. To ensure the requirements of Paragraph 1 are met, the importing Party may request the 
presentation of the Certificate of Origin issued  for goods.  The customs administration of the 
importing Party may require the deposit of a security, including a cash security, up to the amount which would be payable on the goods if they di d not qualify for preferential tariff treatment. 
3. Paragraph 1 does not prevent the importing Party from disputing the customs duty payable on 
the goods referred to in that Paragraph after th e goods have entered for home consumption, in 
accordance with its laws, regulations and policies. 
4. Paragraph 1 does not apply where any goods previo usly traded by the importer, exporter or 
producer of the imported goods, or by any person associ ated with that importer, exporter or producer,  WT/REG185/1 
 Page 11 
 
 
are the subject of current verification action, or have been denied preferential tariff treatment, in 
accordance with Chapter 4 of this Agreement. 
5. Where a dispute arises between the Parties as to: 
(a) the valuation or the tariff classification of go ods for which a Certificate of Origin has 
been issued in accord ance with Chapter 4 of this Agreement; or 
(b) the valuation or the tariff classification of non-originating materials used or consumed 
in the processing of those goods; or 
(c) the interpretation of the rules of origin on wh ich the relevant Certificate of Origin was 
based, 
the importing Party shall consult with the exporting Pa rty with a view to resolving the issue prior to 
taking any action to recover duties. 
 
Article 309 
 
Paperless Trading And Use Of Automated Systems  
 
1. The customs administrations of both Parties, in implementing initiatives which provide for the 
use of paperless trading, shall take into account th e methods agreed in APEC and the World Customs 
Organization. 
2. The customs administration of each Party shall work towards having electronic means for all 
its customs reporting requirements as soon as practicable. 
3. The introduction of information technology shall, to the greatest extent possible, be carried 
out in consultation with all relevant parties directly affected.  
Article 310 
 
Risk Management  
 
1. The Parties shall administer customs procedures at their respective borders so as to facilitate 
the clearance of low-risk goods and focus on high-risk goods. 
2. The Parties shall apply and develop further risk  management techniques in the performance of 
their customs procedures. 
Article 311 
 
Publication And Enquiry Points  
 1. Each Party shall publish on the Internet or a comparable computer-based telecommunications 
network or in print form any statutory and regula tory provisions and any administrative procedures 
applicable or enforceable by its customs administration. 
2. Each Party shall designate one or more enqui ry points to address enquiries from interested 
persons of the other Party concerning customs matt ers, and shall make available on the Internet 
information concerning procedures for making such enquiries. 
 WT/REG185/1 
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CHAPTER 4: RULES OF ORIGIN 
 
Article 401 
 
Definitions
 
 
 For the purposes of this Chapter:  
(a) “Certificate of Origin” means a certificate issued in accordance with Article 408 and 
complying with the requirements of Annex 4.2 (Certificate of Origin Requirements);  
(b) “generally accepted accounting principl es” means the recognised consensus or 
substantial authoritative support in the terr itory of a Party, with respect to the 
recording of revenues, expenses, costs,  assets and liabilities; the disclosure of 
information; and the preparation of fi nancial statements. These standards may 
encompass broad guidelines of general application as well as detailed standards, 
practices and procedures; 
(c) “material” means any matter or substance used or consumed in the production of 
goods, and physically incorporated into or classified with those goods; 
(d) “originating material” means a material th at qualifies as originating in accordance 
with the relevant provisions of this Chapter; 
(e) “registered exporter” means an exporter that is  registered with an authorised body as 
an exporter of originating goods in  accordance with Article 407 (2); 
(f) “registered goods” means the particular goods in respect of which a registered 
exporter is registered in accordance with Article 407 (2); 
(g) “significant change”, in relation to Articles 407 (4) and 408 (2) and Annex 4.2, means 
a change that may prevent those goods from continuing to satisfy the requirements of 
Article 402; 
(h) “wholly obtained goods” means: 
(i) mineral goods extracted in the territory of a Party; 
(ii) agricultural goods harvested, picked, or ga thered in the territory of a Party; 
(iii) live animals born and raised in  the territory of a Party; 
(iv) goods obtained from live animals in the territory of a Party; 
(v) goods obtained directly from hunting, trapping, fishing, gathering, or 
capturing in the territory of a Party; 
(vi) goods (fish, shellfish, plant and other mari ne life) taken within the territorial 
sea or the relevant maritime zone of a Party seaward of the territorial sea under that Party’s applicable laws in accordance with the provisions of the 
United Nations Convention on the Law of the Sea , or taken from the high seas 
by a vessel entitled to fly the flag of that Party;  WT/REG185/1 
 Page 13 
 
 
(vii) goods obtained or produced on board factor y ships entitled to fly the flag of a 
Party from the goods referred to in subparagraph (vi); 
(viii) goods taken by a Party, or a person of a Party, from the seabed or subsoil 
beneath the seabed of the territorial sea or the continental shelf of that Party, 
in accordance with the provisions of the United Nations Convention on the 
Law of the Sea ; 
(ix) waste and scrap derived from production in the territory of a Party, or used 
goods collected in the territory of a Party, provided such goods are fit only for the recovery of raw materials; and 
(x) goods produced entirely in the territory of a Party exclusively from goods 
referred to in subparagraph (i) through (ix). 
Article 402 
 
Originating Goods
 
 
1. Particular goods shall originate in the territory of a Party if they: 
(a) are the wholly obtained goods of that Party; or 
(b) satisfy any applicable requirements of Annex 4.1, as a result of processes performed 
entirely in the territory of one or both of the Parties by one or more producers. 
2. Originating materials from the territory of a Part y, used in the production of particular goods 
in the territory of the other Party, shall be consider ed to originate in the territory of the other Party. 
3. Particular goods that do not satisfy a change in  tariff classification requirement pursuant to 
Annex 4.1 are nonetheless originating goods if: 
(a) the value of all non-originating materials used in the production of the goods that do 
not undergo the required change in tariff cl assification does not exceed 10 per cent of 
the Free on Board (FOB) value of the goods; and 
(b) the goods meet all other appli cable criteria of this Article. 
4. Accessories, spare parts or tools delivered with  originating goods that form part of the 
standard accessories, spare parts, or tools for tho se goods, shall be treated as originating goods, and 
shall be disregarded in determining whether all the non-originating materials used in the production of 
the originating goods undergo th e applicable change in tari ff classification, provided that: 
(a) the accessories, spare parts, or tools are not invoiced separately from the originating 
goods; 
(b) the quantities and value of the accessories, spar e parts, or tools are customary for the 
originating goods; and 
(c) if the goods are subject to a regional va lue content requirement, the value of the 
accessories, spare parts, or tools was taken into account as originating or non-
originating materials, as the case may be, in  calculating the region al value content of 
the originating goods. WT/REG185/1 
Page 14  
 
5. Paragraph 4 does not apply where the accessories, sp are parts or tools have been added solely 
for the purpose of artificially raising the regional value content of the goods. 
6. The determination of whether fungible goods or ma terials are originating goods shall be made 
either by physical segregation of each of the goods or materials or through the use of any inventory 
management method, such as averag ing, last-in, first-out, or first-in, first-out, recognised in the 
generally accepted accounting principles of the Party in which the production is performed or 
otherwise accepted by the Party in  which the production is performed. 
7. An inventory management method selected under Paragraph 6 for particular fungible goods 
or materials shall continue to be used for those fungible goods or materials throughout the fiscal year 
of the person that selected the inventory management method. 
 
8. Packaging materials and containers in which goods  are packaged for retail sale, if classified 
with those goods, or for shipment, shall be disreg arded in determining whether all the non-originating 
materials used in the production of those goods ha ve undergone the applicable change in tariff 
classification set out in Annex 4.1. 
Article 403 
 
Regional Value Content
 
 1. Subject to Paragraphs 2 to 4 of this Articl e and Article 404, where Annex 4.1 requires goods 
to have a regional value content, the regional value content of particular goods shall be calculated as 
follows: 
 RVC = FOB – VNM
   x 100 
          FOB   
 where: 
 
(a) “RVC” is the regional value content between the Parties, expressed as a percentage; 
(b) “FOB” is the FOB value of the goods; and 
(c) “VNM” is the CIF (Cost, Insurance a nd Freight) value of all non-originating 
materials that: 
(i) in the form in which they were firs t supplied to the producer of the goods, 
were imported into Thailand or Australia; or 
(ii) in the form in which they were first s upplied to a producer in the territory of a 
Party of non-originating materials that  are supplied to the producer of the 
goods, were imported into Thailand or Australia. 
2. Annex 4.1 may specify that the value of non-or iginating materials produced in developing 
countries and places may contribute towards the RVC fo r particular goods.  In that case, the value of 
those materials, as a proportion of the FOB value of  the goods equating to no more than the maximum 
allowable proportion specified in the Headnotes to Annex 4.1 for those goods shall be excluded from the VNM for the purposes of paragraph 1.  Prior to en try into force of the Agr eement, the Parties shall 
determine the list of countries and places to be co nsidered developing countries and places for the 
purpose of this paragraph.  The Parties shall, thr ough the Committee on Rules of Origin established in  WT/REG185/1 
 Page 15 
 
 
Article 415, review and modify this list in the li ght of relevant interna tional developments, and 
determine the date on which any such modifications sh all take effect.  This Pa ragraph shall expire 20 
years after the date of entry into force of this Agreement. 
3. Packaging materials and containers in which goods  are packaged for retail sale, if classified 
with those goods, shall be taken into account as orig inating or non-originating materials, as the case 
may be, in calculating the regional value content. 
4. Packaging materials and containers in whic h goods are packaged for shipment shall be 
disregarded in calculating the regional value content. 
Article 404 
 
Calculation Of Values  
 1. For the purposes of this Chapter, the FOB value of particular goods is to be determined under 
Articles 1 to 8, Article 15 and the corresponding interpretative notes of the WTO Customs Valuation 
Agreement, as adjusted to exclude  any costs, charges, or expenses incurred for transportation, 
insurance, and related services incidental to the international shipment of the merchandise from the 
country of exportation to the port or place of importation. 
2. For the purposes of determining whether a materi al acquired in the territory of a Party is 
originating, FOB value for that material shall be ta ken to mean the value of the material, determined 
in accordance with Articles 1 to 8, Article 15 and the corresponding interpretative notes of the WTO 
Customs Valuation Agreement, with such reasonabl e modifications as may be required to reflect the 
fact that the material was not imported. 
3. For the purposes of this Chapter, the CIF va lue of non-originating materials is to be 
determined under Articles 1 to 8, Article 15, an d the corresponding interpretative notes of the WTO 
Customs Valuation Agreement, as adjusted to incl ude any costs, charges, or expenses incurred for 
transportation, insurance, and rela ted services incidental to the in ternational shipment of the goods 
from the country of exportation to the port or place of importation. 
Article 405 
 
Recording Of Costs
 
  For the purposes of this Chapter all costs shall be recorded and maintained in accordance with 
the generally accepted accounting principles applicable in the territory of the Party in which the goods 
are produced or manufactured.  
Article 406 
 
Consignment
 
  Goods shall not be considered to be originati ng if they undergo subsequent production or any 
other operation outside the territories of the Parties,  other than operations necessary to preserve them 
in good condition or to transport them to the territory of the other Party, provided that the goods are not traded or used outside the territories of the Parties. 
 WT/REG185/1 
Page 16  
 
Article 407 
 
Registration Of Exporters
 
 1. Subject to Article 409, the exporting Party shall require that, on receipt of an application to 
register as an exporter of originating goods, an au thorised body referred to in Annex 4.2 (Certificate 
of Origin Requirements) shall, within 60 days of receipt of that application, conduct and conclude 
such examinations of documentation and facilitie s as it considers necessary to establish that the 
particular goods nominated in the applica tion satisfy the requirements of Article 402. 
2. Subject to Article 409, the exporting Party shall require that, where an authorised body, after 
conducting examinations in accordance with Paragraph 1, is satisfied that the particular goods satisfy 
the requirements of Article 402, the authorised body  shall register the applicant as an exporter of 
originating goods in respect of those particular goods, and shall so notify the exporter within ten 
working days. 
3. The exporting Party shall require that, wh ere an authorised body, after conducting 
examinations in accordance with Paragraph 1, is no t satisfied that the particular goods satisfy the 
requirements of Article 402, the authorised body sh all not register the applicant as an exporter of 
originating goods in respect of those particular goods, and shall so notify the exporter within ten 
working days. 
4. The exporting Party shall require that a register ed exporter must, as expeditiously as possible, 
notify the authorised body with which it is registered if a significant change occurs in the basis for the 
registration of particular goods. 
5. The exporting Party shall require that, on receipt  of advice referred to in Paragraph 4, the 
authorised body shall, as expeditiously as possibl e, conduct such examinations of documentation and 
facilities as it considers necessary to assess whether th e registered goods still satisfy the requirements 
of Article 402. 
6. Where an authorised body, after conducting exam inations in accordance with Paragraph 5, is 
satisfied that the registered goods  satisfy the requirements of Article 402, it shall so notify the 
registered exporter within ten working days that the registration of the goods shall continue on the 
basis of the relevant changes.  
7. The exporting Party shall require that an author ised body referred to in Annex 4.2 (Certificate 
of Origin Requirements) may, at any other tim e not specified, conduct such examinations of 
documentation and facilities as it considers necessary to  ensure that registered goods still satisfy the 
requirements of Article 402. 
8. The exporting Party shall require that, wh ere an authorised body, after conducting 
examinations in accordance with Paragraphs 5 or 7,  or for any other reason, is not satisfied that 
registered goods satisfy the requirements of Article  402, the authorised body shall de-register the 
registered exporter as an exporter of originating goods in respect of those goods, and within ten 
working days shall so notify: 
(a) the exporter; 
(b) all other authorised bodies referred to  in Annex 4.2 (Certificate of Origin 
Requirements), in the territory of the exporting Party; and  
(c) the customs administration in the territory of the importing Party.  WT/REG185/1 
 Page 17 
 
 
Article 408 
 
Certification Of Origin  
 1. Subject to Article 409, the exporting Party shall ensure that a registered exporter has the 
opportunity to apply to an authorised body re ferred to in Annex 4.2 (Certificate of Origin 
Requirements) for a Certificate of Origin in r espect of a single shipment of registered goods. 
2. Subject to Article 409, on receipt of an applica tion referred to in Paragraph 1, an authorised 
body shall issue a Certificate of Origin in relation to  the registered goods that are the subject of that 
application, provided that:  
(a) no significant change has occurred in the basi s for the registration of those goods; or  
(b) if a significant change has occurred in the basis for the registration of those goods, the 
authorised body is satisfied that the goods meet the requirements of Article 402. 
3. An authorised body shall not i ssue a Certificate of Origin:  
(a) for goods that are not registered goods; or 
(b) where the circumstances set out in Paragraph 2 are not met.  
4. The exporting Party shall require that an application for a Certificate of Origin and a 
Certificate of Origin must meet the requirements set out in Annex 4.2 (Certificate of Origin Requirements). 
5. The exporting Party shall require that a Certif icate of Origin may be revoked by notice in 
writing.  A revoked Certificate of Origin shall have no force from the date specified in that notice. 
6. The exporting Party shall require that a copy of  a notice revoking a Certificate of Origin shall 
be forwarded to the applicant for the Certificate of Origin and to the importing Party, immediately 
upon the issue of that notice. 
Article 409 
 
Exporter Sanctions
 
 1. The exporting Party shall ensure that adequate  sanctions are imposed where an exporter:  
(a) secures registration as an exporter of origin ating goods, or obtains a Certificate of 
Origin, on the basis of a statement that is false or misleading in any particular, including a statement that is false or misleading due to omission; 
(b) falsifies a Certificate of Origin; 
(c) fails to notify an authorised body of si gnificant changes in accordance with Article 
407 (4); or 
(d) commits any other offence in an effort to secure registration as an exporter of 
originating goods or to obtain a Certificate of Origin. WT/REG185/1 
Page 18  
 
2. In respect of an exporter referred to in paragra ph 1, or in respect of a person who, consistent 
with the principles set out in the WTO Customs Valuation Agreement,
2  is related to such an exporter, 
sanctions imposed may include: 
(a) de-registration in respect of some or all re gistered goods for a particular period; and 
(b) refusal to consider an application for regi stration as an exporter of originating goods 
or for a Certificate of Origin for a particular period. 
3. The exporting Party shall require that, where sanctions are imposed under Paragraph 1, the 
following are notified within ten working da ys of the decision to impose sanctions: 
(a) the exporter; 
(b) all authorised bodies referred to in Annex 4. 2 (Certificate of Origin requirements) in 
the territory of the exporting Party; and 
(c) the customs administration in the territory of the importing Party. 
Article 410 
 
Claim For Preferential Treatment  
 
1. Subject to Article 413, the importing Party sha ll grant preferential tariff treatment to goods 
imported into its territory from the other Party, provided that the goods are originating goods, the 
consignment criteria specified in Article 406 have been met, and the importer claiming preferential 
tariff treatment: 
(a) has a valid Certificate of Origin or a copy  thereof relevant to those goods in its 
possession when claiming preferential tariff treatment; and 
(b) provides a copy of that Certificate of Origin if requested by the importing Party. 
2. The importing Party may waive the requirement for a Certificate of Origin in certain 
circumstances, in accordance with its laws, regulations and policies. 
3. The importing Party shall grant preferential tari ff treatment to goods imported after the date 
of entry into force of this Agreement and for whic h no preferential tariff treatment was earlier applied, 
if: 
(a) the claim for preferential tariff treatment is made within 12 months from the date of 
payment of customs duties, subject to the laws, regulations and policies in the importing Party; and 
(b) the importer provides a copy of a valid Certificate of Origin relevant to those goods. 
Article 411 
 
Records
 
 1. Each Party shall require that: 
                                                     
 
2 With such modifications as may be required to refl ect the fact that the Par ties to the transaction are 
within the same country.  WT/REG185/1 
 Page 19 
 
 
(a) a producer, or an exporter must maintain, for five years from the date of the 
Certificate of Origin, all records relating to the origin of the goods for which preferential tariff treatment is claimed in the importing Party, including the Certificate of Origin relevant to the goods, or a copy thereof; and 
(b) an importer claiming preferential tariff treatment shall maintain, for five years after 
the date of importation of the goods, all r ecords relating to the importation of the 
goods, including the Certificate of Origin relevant to the goods, or a copy thereof. 
2. The records to be maintained pur suant to this Article shall in clude electronic records.  Any 
such records in electronic form shall be mainta ined in accordance with the laws, regulations and 
policies of the relevant Party. 
Article 412 
 
Origin Verification
 
 1. The importing Party may verify the eligibility of goods for preferential tariff treatment in 
accordance with its laws, regulations and policies. 
2. Verification of eligibility for preferential tariff treatment may include either Party taking the 
following courses of action, in accordance w ith mutually determined procedures: 
(a) instituting measures to establish the vali dity of the Certificate of Origin; 
(b) issuing written questionnaires, to be complete d within a period of 30 days, to relevant 
producers, exporters or impor ters of goods for which preferential tariff treatment was 
claimed in the territory of the importing Part y, or of the materials used or consumed 
in the production of those goods; 
(c) requesting the supply of records relating to the production, manufacture or export of 
the goods for which preferentia l tariff treatment was claime d in the territory of the 
importing Party, or of the materials used  or consumed in the production of those 
goods; and 
(d) visiting the factory or premises of the producer, importer, exporter or any other party 
in the territory of a Party associated with the production, import or export of the 
goods for which preferential tariff treatmen t was claimed in the territory of the 
importing Party, or of the materials used  or consumed in the production of those 
goods. 
3. The importing Party shall notify the exporting Pa rty in writing when it approaches any party 
listed in Sub-paragraph (2)(d) within the territory of the exporting Party during an action to verify 
eligibility. 
4. The importing Party shall not visit the factor y or premises of any party listed in Sub-
paragraph (2)(d) within the territory of the exportin g Party without the prior consent of that party. 
5. To the extent allowed by its laws, regulations  and policies, the exporting Party shall fully 
cooperate in any action to verify eligibility and sh all require that producers and exporters cooperate in 
any action to verify eligibility. 
6. Action to verify eligibility for preferential tari ff treatment shall be completed and a decision 
shall be made within 90 days of the commencemen t of such action. Written advice as to whether WT/REG185/1 
Page 20  
 
goods are eligible for preferential tariff treatment mu st be provided to all relevant parties within 10 
days of the decision being made. 
Article 413 
 
Suspension And Denial Of Preferential Tariff Treatment
 
 
1. Notwithstanding Article 410 (1), the importi ng Party may suspend the application of 
preferential tariff treatment to goods that are the s ubject of origin verifica tion action under Article 412 
for the duration of that action, or any part thereof. 
2. The importing Party may deny a claim for preferential tariff treatment or recover unpaid 
duties where: 
(a) the goods do or did not meet the requirements of this Chapter;  
(b) the producer, exporter, or importer of goods fails or has failed to comply with any of 
the relevant requirements for obtaining preferential tariff treatment; or 
(c) action taken under Article 412 failed to ve rify the eligibility of the goods for 
preferential tariff treatment. 
Article 414 
 
Review And Appeal  
  The importing Party shall grant the right of appeal in matters relating to eligibility for 
preferential tariff treatment to producers, exporters  or importers of goods traded or to be traded 
between the Parties, in accordan ce with its laws and regulations. 
 
Article 415 
 
Committee On Rules Of Origin
 
 1. For the purposes of the effective and uniform im plementation of this Chapter, a Committee on 
Rules of Origin (“the Committee”) shall be establis hed. The functions of the Committee shall include: 
(a) the monitoring of the implementation and ad ministration of the provisions of this 
Chapter; 
(b) the discussion of any issue that may have arisen in the course of implementation, 
including any matters that may have been  referred to the Committee by the Joint 
Commission; 
(c) the discussion of any proposed modifications of  the rules of origin under this Chapter; 
and  
(d) consultation on issues relating to rules of origin and administrative cooperation. 
2. The Committee shall be comprised of representatives of the Parties. It shall meet at least once 
a year and more often as may be mutually dete rmined from time to time between the Parties. 
  WT/REG185/1 
 Page 21 
 
 
CHAPTER 5: SAFEGUARDS 
 
PART I: DEFINITIONS 
 
Article 501 
 
Definitions  
  For purposes of this Chapter:  
(a) “domestic industry” means, with respect to an imported good, the producers as a 
whole of the like or directly competitiv e good or those producers whose collective 
production of the like or directly competitive good constitutes a major proportion of the total domestic production of such good; 
(b) “provisional measure” means a provisional saf eguard measure described in Article 
505; 
(c) “safeguard measure” means a safeguard measure described in Article 502; 
(d) “special safeguard measure” means a special safeguard measure described in Article 
509; 
(e) “serious damage” means a significant overall impairment in the position of a 
domestic industry; and 
(f) “transition period”, in relation to a partic ular good, means the period from the entry 
into force of this Agreement until the date on which the customs duty on that good is to be eliminated in accordance with Annex 2.  
 
PART II: TRANSITIONAL SAFEGUARD MEASURES 
 
Article 502 
 
Application Of A Safeguard Measure
 
  If, as a result of the reduction or elimination of  a customs duty pursuant to this Agreement, an 
originating good of a Party is be ing imported into the other Party’s territory in such increased 
quantities, in absolute terms or relative to domes tic production, and under such  conditions as to cause 
serious damage, or actual threat thereof, to a domestic industry producing a like or directly 
competitive good, the other Party may, to the minimu m extent necessary to prevent or remedy serious 
damage and facilitate adjustment, appl y a safeguard measure, consisting of: 
 
(a) the suspension of the further reduction of any rate of customs duty provided for under 
this Agreement on the good; or 
(b) an increase of the rate of customs duty on th e good to a level not to exceed the lesser 
of 
(i) the most-favoured-nation (MFN) applied rate of customs duty in effect at the 
time the action is taken, or WT/REG185/1 
Page 22  
 
(ii) the MFN applied rate of customs duty in effect on the day immediately 
preceding the date of entry into force of this Agreement. 
Article 503 
 
Scope And Duration Of Transitional Safeguard Measures
 
 
1. A Party shall apply a safeguard measure only for such period of time as may be necessary to 
prevent or remedy serious damage and to facilita te adjustment.  A Party may apply a safeguard 
measure for an initial period of no longer than two years.  The period of a safeguard measure may be 
extended by up to two years provided that the conditions  of this Chapter are met.  The total period of a 
safeguard measure, including any extensions thereof, shall not exceed six years.  Regardless of its 
duration or whether it has been subject to extens ion, a safeguard measure on a good shall terminate 
within two years following the end of the transiti on period for such good.  No new safeguard measure 
may be applied to a good after that date. 
2. In order to facilitate adjustment in a situa tion where the proposed duration of a safeguard 
measure is over one year, the Party applying the measure shall progressively liberalise it at regular 
intervals during the application of the measu re, including at the time of any extension. 
3. A Party shall not apply a safeguard or provisional measure more than once on the same good 
until a period of time has elapsed following the te rmination of the earlier safeguard or provisional 
measure equal to the duration of the earlier measure. 
4. A Party may not apply a safeguard or provisional measure on a good that is subject to a 
measure that the Party has applied pursuant to  Article XIX of GATT 1994 and the WTO Safeguards 
Agreement, the WTO Agreement on Textiles and Clothi ng, or any other relevant provisions in the 
WTO Agreement, nor may a Party continue to main tain a safeguard or provisional measure on a good 
that becomes subject to a measure that the Part y applies pursuant to Article XIX of GATT 1994 and 
the WTO Safeguards Agreement, the WTO Agreement on Textiles and Clothing or any other relevant 
provisions in the WTO Agreement. 
5. On the termination of a safeguard measure, the Party that applied the measure shall apply the 
rate of customs duty set out in its Tariff Schedule as  specified in Annex 2 on the date of termination 
as if the safeguard measure had never been applied. 
Article 504 
 
Investigation  
 1. A Party may apply or extend a safeguard measu re only following an investigation by the 
Party’s competent authorities to exam ine the effect of increased imports of an originating good of the 
other Party on the domestic industry, as reflected in  changes in such releva nt economic variables as 
production, productivity, levels of sales, utilisation of capacity, inventories, market share, exports, 
wages, employment, domestic prices, profits and investment, none of which is necessarily decisive.  When factors other than increased imports of an or iginating good of the other Party resulting from the 
reduction or elimination of a customs duty pursuan t to this Agreement are simultaneously causing 
damage to the domestic industry, such damage sha ll not be attributed to such increased imports. 
2. An investigation under Paragr aph 1 shall only take place pursuant to procedures previously 
established and made public in consonance with Chap ter 14 of this Agreement.  The investigation 
shall include reasonable public notice to all interested  parties and public hearings or other appropriate 
means in which importers, exporters and other in terested parties could present evidence and their 
views, including the opportunity to respond to the presentations of other parties and to submit their  WT/REG185/1 
 Page 23 
 
 
views, inter alia , as to whether or not the application of a safeguard measure would be in the public 
interest.  Upon completion of an investigation, the competent authorities shall promptly publish a 
report setting forth their findings and reasoned conclusi ons reached on all pertinent issues of fact and 
law. 
3. Any information which is by nature confidentia l or which is provided on a confidential basis 
shall, upon cause being shown, be treated as such by the competent authorities.  Such information 
shall not be disclosed without permission of the party submitting it.  Parties providing confidential 
information may be requested to furnish non-conf idential summaries thereof or, if such parties 
indicate that such information cannot be summarised , the reasons why a summary cannot be provided.  
However, if the competent authorities find that a requ est for confidentiality is not warranted and if the 
party concerned is either unwilling to make the info rmation public or to authorise its disclosure in 
generalised or summary form, the authorities ma y disregard such information unless it can be 
demonstrated to their satisfaction from appropr iate sources that the information is correct. 
Article 505 
 
Provisional Measures  
 1. In highly unusual and critical circumstances wh ere delay would cause damage which would 
be difficult to repair, a Party may apply a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that in creased imports of an originating good of the other 
Party as a result of the reduction or elimination of a duty pursuant to this Agreement have caused or 
are threatening to cause serious damage.  The duratio n of such a provisional measure shall not exceed 
200 days, during which period the pertinent requireme nts of Articles 502, 503 and 504 shall be met.  
The duration of any such provisional measure shall be counted as part of the total period referred to in 
Article 503 (1).  Any additional customs duties co llected as a result of such a provisional measure 
shall be promptly refunded if the subsequent inv estigation referred to in Pa ragraph 1 of Article 504 
does not determine that increased imports of an or iginating good of the other Party have caused or 
threatened to cause serious damage to a domestic indus try.  In such a case, the Party that applied the 
measure shall apply the rate of customs duty set out in its Tariff Schedule as specified in Annex 2 as if 
the provisional measure had never applied. 
2. In determining whether such highly unusual a nd critical circumstances exist, a Party shall 
have regard to the rate of increase of imports of an originating good of the other Party, both in 
absolute and relative terms, and the overall level of the Party’s imports of the good from the other 
Party as a share of total imports of the good, as a resu lt of the reduction or elimination of a duty on the 
good pursuant to this Agreement. 
Article 506 
 
Notification And Consultation
 
 1. A Party shall promptly notify the other Party, in writing, on: 
(a) initiating an investigation under Article 504; 
(b) making a finding of serious damage or act ual threat thereof caused by increased 
imports of an originating good of the other Party as a result of the reduction or 
elimination of a customs duty on th e good pursuant to this Agreement; 
(c) taking a decision to apply or extend a safeguard measure, or to apply a provisional 
measure; and WT/REG185/1 
Page 24  
 
(d) taking a decision to modify a safeguard measure previously applied. 
2. A Party shall provide to the other Party a copy  of the public version of the report of its 
competent authorities required under Article 504 immediately as it is available. 
3. In making a notification pursuant to Paragraph 1, the Party applying or extending a safeguard 
measure shall also provide evidence of serious dama ge or actual threat thereof caused by increased 
imports of an originating good of the other Party as a result of the reduction or elimination of a 
customs duty pursuant to this Agreement, a precise description of the good involved, the details of the 
proposed measure including as appropriate the grounds  for not selecting the measure described in 
Article 502 (a) , the date of intro duction, duration, and timetable for progressive liberalisation of the 
measure, if applicable.  In the case of an extens ion of a measure, evidence that the domestic industry 
concerned is adjusting shall also be provided.  Upon request, the Party applying or extending a 
safeguard measure shall provide additional inform ation as the other Party may consider necessary. 
4. A Party proposing to apply or extend a safegua rd measure shall provide adequate opportunity 
for prior consultations with the other Party, with a view to, inter alia , reviewing the information 
provided under Paragraph 3, exchanging views on  the measure, and reaching an agreement on 
compensation as set forth in Article 507 (1). 
5. Where a Party applies a provisional measure referre d to in Article 505, on request of the other 
Party, consultations shall be initiated immediately after such application. 
6. The provisions on notification in this Chapter sh all not require a Party to disclose confidential 
information the disclosure of which would impede la w enforcement or otherwise be contrary to the 
public interest or would prejudice the legitimate comme rcial interests of particular enterprises, public 
or private. 
Article 507 
 
Compensation
 
 
1. A Party extending a safeguard measure for an overall period beyond three years shall, in 
consultation with the other Party, provide to th e other Party mutually agreed trade liberalising 
compensation in the form of substantially equivale nt concessions during the pe riod of extension of the 
measure beyond the aforementioned three years.  Such  consultations shall begin within 30 days of the 
decision to extend the measure and, in accordance w ith Article 506 (4), shall take place prior to the 
extension. 
2. If the Parties are unable to reach agreement on compensation within 30 days after the 
consultations commence, the exporting Party shall be free to suspend the application of substantially 
equivalent concessions to the trade of th e Party extending the safeguard measure. 
3. A Party shall notify the other Party in writing at least 30 days before suspending concessions 
under Paragraph 2. 
4. The obligation to provide compensation under Paragraph 1 and the right to suspend 
substantially equivalent concessions  under Paragraph 2 shall terminate on the date of the termination 
of the safeguard measure.  WT/REG185/1 
 Page 25 
 
 
Article 508 
 
Global Safeguards  
 1. Each Party retains its rights and obligati ons under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards and any ot her relevant provisions in the WT O Agreement.  This Agreement 
does not confer any additional rights or obligations on the Parties with regard to such global safeguard 
measures, except that a Party taking such a measure  may exclude imports of an originating good of 
the other Party from the action if such imports are not a cause of serious injury or threat thereof or of 
serious damage or actual threat thereof or of any other such factor as may be  provided in Article XIX 
of GATT 1994 and the WTO Agreement on Safeguards,  and any other relevant provisions in the 
WTO Agreement.  
2. A Party considering the imposition of a global safeguard measure on an originating good of 
the other Party shall initiate consultations with that  Party as far in advance of taking any such measure 
as practicable. 
 
PART III: SPECIAL SAFEGUARD MEASURES FOR CERTAIN  
SENSITIVE AGRICULTURAL PRODUCTS 
 
Article 509 
 
Standards For A Special Safeguard Measure
 
 1. A Party may, in exceptional circumstances, a pply a special safeguard measure to a limited 
number of specified sensitive agricultural goods, as set down in Annex 5. 
2. The Parties shall endeavour to apply special safeguards measures in a manner that is 
consistent with their commitment under the terms of  this Agreement to promote the expansion of 
bilateral trade in agricultural goods. 
3. A Party may impose a special safeguard meas ure on a good only during the period set down 
in Annex 5 for that good.  
4. Such a special safeguard measure may be applie d to imports of an ag ricultural good listed in 
Annex 5 if the volume of imports of that origin ating good of the other Party entering the customs 
territory of the Party during any given calendar year  exceeds the specified volume trigger level for 
that year.  The applicable trigger levels are set out in Annex 5. 
5. If the conditions in Paragraph 4 are met, a Party may increase the rate of customs duty 
applicable to the good for the remainder of that cal endar year through the application of the customs 
duty for such good at the current MFN rate  or the base rate, whichever is lower. 
6. Any supplies of the good in question which were  en route on the basis of a contract settled 
before the additional customs duty is imposed under th e terms of this Article shall be exempted from 
any such additional customs duty, provided that they may be counted in the volume of imports of the 
good in question during the following year for the purposes of triggering the provisions of Paragraph 4 in that year. 
7. Each Party shall apply any special safeguard measure in a transparent manner.  A Party 
applying a special safeguard measure shall give notic e in writing, including relevant data, to the other 
Party as far in advance as may be practicable and in any event within ten working days of the 
implementation of such action. WT/REG185/1 
Page 26  
 
8. Upon request, the Party imposing the measure sh all consult and cooperate in exchanging 
information as appropriate with the other Party with  respect to the conditions of application of the 
measure.  
9. A Party may not apply a special safeguard measure  on a good that is subject to a measure that 
the Party has applied pursuant to Article XIX of GATT 1994 and the WTO Safeguards Agreement or 
any other relevant provisions in  the WTO Agreement or to a measure set forth in Articles 502-508, 
nor may a Party continue to maintain a special safe guard measure on a good that becomes subject to a 
measure that the Party applies pursuant to Ar ticle XIX of GATT 1994 and the WTO Safeguards 
Agreement or any other relevant provisions in the WTO Agreement, or to any measure set forth in 
Articles 502-508. 
10. No later than three years following the entry into  force of this Agreement, the Parties shall 
review the operation of this Article, including th e appropriateness of the li st and trigger levels, 
including the growth factors set down in Annex 5.   The review shall take into account relevant 
international trade developments. 
11. In the event that a Party enters  into an agreement or arrangement with a non-Party following 
entry into force of this Agreement that does not provide for special safeguard measures on a good or 
goods covered in the relevant secti on of Annex 5 of this Agreement, and where the non-Party is a 
substantial supplier of the good or goods, the Parties sh all, by mutual consent, enter into consultations 
on the scope for that good or those goods to be withdrawn from Annex 5. 
 
CHAPTER 6: SANITARY AND PHYTOSANITARY MEASURES AND FOOD STANDARDS 
 
Article 601 
 
Objectives
 
 
 The objectives of this Chapter are: 
 
(a) to protect human, animal or plant life or health in the territory of each Party; 
(b) to facilitate safe bilateral trade in food, pl ants and animals, including their products, 
and animal feed; 
(c) to strengthen cooperation between Thai a nd Australian government agencies having 
responsibility for matters covered by th is Chapter and to deepen mutual 
understanding of each Party’s regulations and procedures; and 
(d) to strengthen collaboration between the Pa rties in relevant international bodies 
implementing agreements or developing international standards, guidelines and 
recommendations relevant to the ma tters covered by this Chapter. 
Article 602 
 
Definitions  
  For the purposes of this Chapter:  
(a) “agricultural and food standard” means a mandatory requirement being either a 
sanitary or phytosanitary measure or other technical regulation, that is made pursuant to relevant laws administered by either Party;  WT/REG185/1 
 Page 27 
 
 
(b) “sanitary or phytosanitary measure” (SPS measure) shall have the same meaning as in 
Annex A, paragraph 1, of the SPS Agreem ent; sanitary or phytosanitary measures 
include control, inspection and approval pr ocedures, guidelines for use of which are 
given in Annex C of the SPS Agreement; 
(c) “technical regulation” means a non-SPS measu re which shall have the same meaning 
as in Annex 1 of the TBT Agreement; and 
(d) “appropriate level of sanitary or phytosan itary protection” shall have the same 
meaning as in Annex A of the SPS Agreement. 
Article 603 
 
Scope  
 
1. This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, 
directly or indirectly, affect trade in agricultura l and food products traded between the Parties, 
regardless of the origin of those products. 
2. It shall also apply to: 
(a) all other agricultural and food standards re lated to agricultural and food products 
traded between the Parties;  
(b) assessments of manufacturers or manufacturing processes of agricultural and food 
products exported from one Party to the other Party; and 
(c) assessments of official control, inspection a nd approval systems related to agricultural 
and food products operated by the Parties. 
Article 604 
 
Obligations  
 
1. The Parties reaffirm their existing rights and obligations with respect to each other under the 
SPS Agreement and the TBT Agreement to the extent that these rights and obligations are applicable 
to trade in agricultural and food products. 
2. Nothing in this Chapter shall prevent a Part y from adopting or maintaining, in accordance 
with its international rights and obligations: 
(a) SPS measures necessary to ach ieve its appropriate leve l of protection of human, 
animal or plant life or health; and 
(b) other technical requirements set out in a Party’s laws, regulations and policies as 
appropriate to its national circumstances. 
3. Each Party, consistent with Pa ragraphs 1 and 2, shall retain all authority under its laws to 
implement sanitary and phytosanitary measures and ot her standards related to this Chapter.  This 
includes the authority to take appropriate measures for goods that do not conform to that Party’s SPS 
measures and such other standards. WT/REG185/1 
Page 28  
 
Article 605 
 
Harmonisation
 
 1. Noting their commitments under Article 604 (1), th e Parties shall endeavour to work towards 
harmonisation of sanitary and phytosanitary measures and other agricultural and food standards, on as 
wide a basis as possible, as provided for under Artic le 3 of the SPS Agreement and Article 2 of the 
TBT Agreement. 
2. Harmonisation shall be pursued without requiring e ither Party to change its appropriate level 
of protection of human, animal or plant life or health , that the Party determines to be appropriate in 
accordance with the relevant provisions  of Article 5 of the SPS Agreement. 
Article 606 
 
Equivalence
 
 
1. The Parties recognise that the principle of equivalence as set down in Article 4 of the SPS 
Agreement and Article 2 of the TBT Agreement, as  applied to SPS measures and other agricultural 
and food standards, has mutual benefits  for both exporting and importing countries. 
2. The Parties shall follow the procedures for de termining the equivalence of SPS measures and 
other agricultural and food standards, including control, inspection and approval procedures, 
developed by the relevant WTO bodies and th e Codex Alimentarius Commission, the Office 
Internationale des Epizooties and the Internati onal Plant Protection Convention, as amended from 
time to time. 
3. Compliance by an exported food product with  a food standard that has been accepted as 
equivalent to a food standard of the importing Party shall not remove the need for that product to comply with any other relevant mandatory  requirements of the importing Party. 
Article 607 
 
Control, Inspection And Approval Procedures
 
 1. The Parties recognise that they operate different systems for giving effect to their 
international rights and obligations relating to  control, inspection and approval procedures. 
2. Each Party shall, on the request of the other Party, following the procedures set down from 
time to time by the relevant WTO bodies and the Codex Alimentarius Commission, the Office 
Internationale des Epizooties or the International Plant Protection Convention, give consideration to 
accepting the relevant control, inspec tion and approval procedures of the other Party, provided that it 
is satisfied that these achieve the same ou tcomes as its own regulatory requirements.  
3. Each Party shall on request and in accordance with  its international oblig ations and applicable 
laws, regulations and policies, revi ew its inspection, testing, certi fication and other relevant import 
and export approval systems or procedures to ensure these are reasonable and necessary, so as to further facilitate access of traded goods to its te rritory and minimise the costs of doing business. 
4. The Parties shall cooperate on a product trace back system for the notification of non-
compliance of imported consignments for commoditi es subject to SPS measures or other agricultural 
and food standards requirements, drawing on the guid elines of relevant inte rnational organisations 
where available.  WT/REG185/1 
 Page 29 
 
 
5. In particular: 
(a) where non-compliance with SPS measures or other agricultural and food standards 
arises, the importing Party shall notify the exporting Party of the consignment details; 
(b) unless specifically required by laws, regulations or policies in effect at the time this 
Agreement enters into force, the importi ng Party shall avoid suspending trade based 
on one shipment, but in the first instance shall contact the exporting Party to ascertain 
how the problem has occurred.  The Parties shall consult on what remedial action might be taken by the exporting Party to ensure that further shipments are not affected; 
(c) the exporting Party shall investigate and a dvise the importing Party of its findings 
regarding the non-compliance referred to in Sub-paragraph (a), including any 
corrective action that will apply to future  shipments.  The Parties shall, upon the 
request of either Party, jointly examine the import or export control, inspection and approval procedures concerned; and 
(d) if, after investigation and review, the Parti es mutually determine that the issue is an 
incident arising from an isolated technical  problem, the importing Party shall separate 
the incident clearly from the overall in stitutional and procedural arrangements 
applying to relevant control, inspection and approval systems.  In this event, the 
importing Party shall confine any treatment measures taken only to that particular shipment and shall also endeavour to ensure that the incident is not used as a basis for 
refusing to accept the arrangements applying  to other shipments of the products 
concerned. 
Article 608 
 
Information Exchange And Cooperation
 
 
1. Recognising the importance of close and effectiv e working relationships between the Parties’ 
regulatory and other relevant agencies in giving eff ect to the objectives of this Chapter, the Parties 
shall enhance their consultation processes in order to facilitate cooperation. 
2. In particular, each Party shall: 
(a) establish an overall coordination contact poi nt, as well as contact points for relevant 
specialised areas, to dissemi nate and exchange informa tion expeditiously and to 
facilitate timely and favour able consideration of requests for information or 
clarification from the other Party.  The overall coordination contact point shall be 
included in all consultations made pursuant to this Article; 
(b) provide notice to the relevant contact points of the other Party of new or proposed 
changes to its SPS measures and other agri cultural and food standards, as far in 
advance as practicable before the changes co me into effect, where these are likely to 
affect, directly or indirectly, trade between the Parties; 
(c) where considerations of public, animal or plant health and safety warrant more urgent 
action, notify the other Party no later than the date the changes enter into force; 
(d) where it implements emergency management measures in response to a confirmed 
threat to human, plant or animal life or h ealth, ensure that all pertinent information WT/REG185/1 
Page 30  
 
about the incident is provided to the other Party and the Parties shall consult expeditiously with the aim of minimising disruption to trade. 
3. The Parties shall explore opportunities for furt her cooperation and collaboration on regulatory 
issues at the bilateral, regional and multilateral levels consistent with the provisions of this Chapter. 
4. The Parties shall enhance coope ration on priority proposals in relevant areas of technical 
assistance and capacity-building activiti es to ensure that existing or fu ture opportunities for funding or 
other support are used effectively to further the objectives of this Chapter. 
Article 609 
 
Consultative Forum On Sanitary And Ph ytosanitary Measures and Food Standards
 
 
1. The Parties shall establish an Expert Group on Sa nitary and Phytosanitary Measures and Food 
Standards as a consultative forum to promote the ob jective set out in Article 601 (c) and to reflect 
their commitments under Article 608 (1) to streng then cooperation between regulatory agencies 
having responsibility for sanitary and phytosan itary measures and for food standards. 
2. The Expert Group, along with the existing Joint Working Group on Agriculture, shall together 
form an integrated means of enhanced regular and comprehensive consulta tion and cooperation on 
agriculture and related matters so as to facilitate safe trade be tween the Parties. 
3. The Expert Group shall meet as often as required and mutually determined by the Parties, but 
this shall not be less than once a year.  In principl e, the Parties shall meet biannually during the initial 
two year work program of the Expert Group.  Th e Expert Group shall meet consecutively with the 
regular meetings of the Joint Working Group, alternately in each Party’s territory. 
4. The Parties may mutually determine an alte rnative process for addressing any matter and for 
this purpose shall make full use of the coordina tion and contact points established under Article 608 
(2)(a). 
5. The Expert Group may adopt a work program and work procedures independently of the 
established scope and modalities of the Joint Work ing Group.  The Expert Group shall inform the 
Joint Working Group of the outcomes from its meetings. 
6. The Expert Group may establish temporary task forces to address particular issues.  
7. The Party hosting the Expert Group shall provide the chair for the meeting who shall be a 
representative from the agriculture ministry of the re levant Party.  Delegations to the Expert Group 
may be composed of relevant technical and policy officials or other designated officials as each Party 
determines appropriate from time to time.  Each Pa rty shall ensure, reflecting the agenda agreed for 
each meeting, that appropriate representativ es with responsibility for SPS measures and food 
standards participate in meetings of the Expert Group. 
8. The Parties shall consult on dates and venues fo r planned meetings of the Expert Group and 
Joint Working Group well in advance.  Agendas for meetings of the Expert Group shall be mutually 
determined at least 30 days prior to each meeting. 
9. To achieve the objectives of Paragraph 2 on matters  related to this Chapter, the Expert Group 
shall at its first meeting develop and implemen t a work program, with the initial phase to be 
completed and reviewed within two years of the signature of this Agreement, with the aim of:  WT/REG185/1 
 Page 31 
 
 
(a) reviewing progress and monitoring the implem entation of this Chapter on an ongoing 
basis; 
(b) enhancing mutual understanding of each Part y’s sanitary and phytosanitary measures, 
agricultural and food standards,  and related regulatory processes; 
(c) consulting on matters related to the devel opment or application of SPS measures and 
other agricultural and food standards that  affect or may affect trade between the 
Parties; 
(d) reviewing and assessing progress of each Party’s priority market access interests, 
which at the time of signature of this  Agreement are listed in Annex 6.1; 
(e) consulting on requests for recognition of equivalence of SPS measures or other 
agricultural and food standards.  In respect of control, inspection and approval 
arrangements, the priority sectors of each Party at the time of signature of this Agreement are listed in Annex 6.2; 
(f) consulting on matters relating to the harmonisation of standards; 
(g) consulting or coordinating positions on ma tters related to meetings of the WTO SPS 
Committee, the Codex Alimentarius Commis sion, the Office Internationale des 
Epizooties, the International Plant Protection Convention or other forums dealing with human, plant or animal health;  
(h) coordinating and prioritising capacity build ing and technical cooperation programs 
related to SPS measures and other relevant  agricultural and food standards; and 
(i) progressing resolution of disputes that arise in connection with the matters covered by 
this Chapter. 
Article 610 
 
Dispute Settlement
 
 
1. Matters arising under this Ch apter that cannot be settled th rough consultations within the 
Expert Group established under Article  609 may be forwarded by either  Party for consideration by the 
FTA Joint Commission. 
2. Chapter 18 shall not apply to the provisions of this Chapter. 
 
CHAPTER 7: INDUSTRIAL TECHNICAL BARRIERS TO TRADE 
 
Article 701 
 
Definitions  
 
 All general terms concerning standards and c onformity assessment used in this Agreement 
shall have the meaning given in the definitions contained in the International Organization for 
Standardization/International Electrotechnical  Commission Guide 2 (1996), which cover goods, 
processes, and services. This Chapter deals only with  technical regulations, standards and conformity 
assessment procedures related to products or pr ocesses and production methods. In addition, the 
following terms and definitions shall appl y for the purposes of this Chapter: WT/REG185/1 
Page 32  
 
 
(a) “conformity assessment” means any procedur e used, directly or indirectly, to 
determine that relevant requirements in technical regulations or standards are 
fulfilled; 
(b) “equivalence” means the state wherein ma ndatory requirements applied in the 
exporting Party, though different from the mandatory requirements applied in the 
importing Party, meet the legitimate objectiv e of the mandatory requirements applied 
in the importing Party; 
(c) “mandatory requirements” means all mandato ry standards and technical regulations 
in the laws, regulations and policies of the Parties; 
(d) “standard” means a document approved by a recognised body that provides, for 
common and repeated use, rules, guidelines or  characteristics for products or related 
processes and production methods, with whic h compliance is not mandatory. It may 
also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method; and 
(e) “technical regulation” means a document which lays down product characteristics or 
their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling 
requirements as they apply to a product, process or production method. 
Article 702 
 
Objectives
 
  The objectives of this Chapter are:  
(a) to facilitate trade and investment between  the Parties through collaborative efforts 
which minimise the impact of technical regulations and/or assessments of manufacturers or manufacturing processes on the goods traded between the Parties, in the most appropriate or cost-effective manner;  
(b) to complement bilateral agreements and a rrangements between the Parties relating to 
technical regulations; and  
(c) to build on the mutual recognition arrangements developed within the voluntary 
sector and APEC context. 
Article 703 
 
Scope And Obligations
 
 
1. The Parties affirm with respect to each other their existing rights and obligations relating to 
technical regulations under the WTO Agreement on Technical Barriers to Trade  and all other 
international agreements, including  environmental and conservation agreements, to which the Parties 
are party.  
2. Nothing in this Chapter shall prevent a Part y from adopting or maintaining, in accordance 
with its international rights and obliga tions, and conditions set out in the WTO Agreement on 
Technical Barriers to Trade:  WT/REG185/1 
 Page 33 
 
 
(a) technical regulations necessary to ensure its national security requirements; and 
(b) technical regulations necessary for the protection of human, animal or plant life or 
health, or the environment, or for the pr evention of deceptive practices or to fulfil 
other legitimate objectives, as specified in the WTO Agreement on Technical 
Barriers to Trade . 
3. Each Party shall retain all aut hority under its laws to implemen t its technical regulations. This 
includes the authority to take appropriate measur es for goods that do not conform to the Party's 
technical regulations. Such measures may include  withdrawing goods from the market, prohibiting 
their placement on the market or restricting th eir free movement, initiating a product recall or 
prohibiting an import.  
4. The Parties affirm their intention to adopt and to apply, with such modifications as may be 
necessary, the principles set out in the APEC Information Notes on Good Regulatory Practice in 
Technical Regulation  with respect to conformity assessment and approval procedures in meeting their 
international obligations under the WTO Agreement on Technical Barriers to Trade . 
Article 704 
 
Origin  
  This Chapter applies to all goods traded between the Parties, regardless of the origin of those 
goods, unless otherwise specified by any technical regulations of a Party.  
Article 705 
 
Harmonisation And Equivalence
 
 1. The Parties shall, where appropriate, endea vour to work towards harmonisation of their 
respective technical regulations, taking into account relevant international standards, 
recommendations and guidelines, in accordance w ith their international rights and obligations. 
2. The Parties shall give positive consideration to accepting as equivalent technical regulations 
of the other Party, even if these regulations diffe r from their own, provided they are satisfied that 
these regulations adequately fulfil the objectives of their own regulations. 
Article 706 
 
Conformity Assessment Procedures
 
 1. The Parties shall, recognising the existence of differences in the structure, organisation and 
operation of conformity assessment procedures in their respective territories, make compatible those 
procedures to the greatest extent practicable. 
2. Each Party shall, wherever possible, accept th e results of a conformity assessment procedure 
conducted in the territory of the other Party, provided that it is satisfied that the procedure offers an 
assurance, equivalent to that provided by a pro cedure it conducts or a procedure conducted in its 
territory the results of which it accepts, that the rele vant good complies with the applicable technical 
regulation or standard adopted or ma intained in the Party's territory. 
3. Before accepting the results of a conformity assess ment procedure, and to enhance confidence 
in the continued reliability of each other's confor mity assessment results, the Parties may consult on WT/REG185/1 
Page 34  
 
such matters as the technical competence of the conformity assessme nt bodies involved, as 
appropriate. 
4. Recognising that it should be to the mutual advantage of the Parties, each Party may accredit, 
approve, license or otherwise recognise conformity assessment bodies in the territory of the other Party on terms no less favourable than those accorded to conformity assessment bodies in its territory. 
5. Each Party shall, on request of the other Part y, take such reasonable measures as may be 
available to it to facilitate access in its te rritory for conformity assessment procedures. 
6. Each Party shall give sympathetic considerati on to a request by the other Party to negotiate 
agreements for the recognition of the results of that other Party's conformity assessment procedures in the agreed sector. 
7. Each Party shall utilise to the maximum po ssible extent existing mutual recognition 
arrangements in relation to the acceptance of conformity assessment processes and procedures. 
8. Each Party shall take steps to implement Parts 1, 2 and 3 of the APEC Mutual Recognition 
Arrangement for Conformity Assessment of Electrical and Electronic Equipment  with respect to the 
other Party.  
9. Each Party shall give serious consideration, wh ere possible, to participation in any future 
mutual recognition arrangement s developed within APEC. 
Article 707 
 
Technical Cooperation And Contact Point
 
 
1. A Party shall, on request of the other Party: 
(a) provide to that Party technical advice, information and assistance on mutually 
determined terms and conditions to enha nce that Party's technical regulations, 
standards and conformity assessment procedures; and 
(b) provide to that Party information on its  technical cooperation programs regarding 
technical regulations, standards and conf ormity assessment procedures relating to 
specific areas of interest. 
2. Each Party shall establish a contact point: 
(a) to have responsibility for co-ordinating with  interested parties in their respective 
territories proposals for enhanced cooperati on and responses to such proposals as well 
as activities for technical cooperation set out under Paragraph 1; 
(b) to consider and facilitate the acceptance of  equivalence of standards, sector by sector, 
on a case by case basis; 
(c) to consider and facilitate mutual recogniti on arrangements for conformity assessment 
of specific products as requested by the other Party; 
(d) to broaden the exchange of information; and 
(e) to give favourable consideration to  any written request for information.  WT/REG185/1 
 Page 35 
 
 
3. Each Party shall encourage standardising bodi es in its territory to cooperate with the 
standardising bodies in the territory of the other Party in their participation, as appropriate, in 
standardising activities, such as through member ship in international standardising bodies. 
 
CHAPTER 8: TRADE IN SERVICES 
 
PART I: OBJECTIVES, DEFINITIONS AND SCOPE 
 
Article 801 
 
Objectives  
  The objectives of this Chapter are:   
(a) to liberalise trade in services between the Parties, in accordance with Article V of 
GATS; and 
(b) to enhance cooperation in trade in services between the Parties in order to improve 
the efficiency, competitiveness and diversity of services and service suppliers. 
Article 802 
 
Definitions
 
 
 For the purpose of this Chapter:  
(a) “juridical person of the other Party” means a juridical person which is either: 
(i) constituted or otherwise or ganised under the law of the other Party and is 
engaged in substantive business operations in the territory of that Party; or 
(ii) in the case of the supply of a service through commercial presence, owned or 
controlled by: 
   a. natural persons of the other Party; or 
    b. juridical persons of the other Party identified under subparagraph (i)  
 
(b) “measure” means any measures by a Party, whether in the form of a law, regulation, 
rule, procedure, decision, administrative action, or any other form; 
(c) “measures by the Parties affecting trad e in services” means measures taken by  
(i) central, regional or local governments and authorities; and 
(ii) non-governmental bodies in the exercise of powers delegated by central, 
regional or local governments and authorities; 
  including measures in respect of: 
 
(i) the purchase, payment or use of a service; WT/REG185/1 
Page 36  
 
(ii) the access to and use of, in connection with the supply of a service, services 
which are required by the Parties to be offered to the public generally; 
(iii) the presence, including commercial presence, of persons of a Party for the 
supply of a service in the territory of the other Party; 
in fulfilling its obligations under this Chapte r, each Party shall take such reasonable 
measures as may be available to it to ensu re their observance by regional and local 
governments and authorities and non-governmental bodies within its territory; 
 
(d) “natural person of a Party” means a natural person who resides in the territory of the 
Party or elsewhere and who under the law of that Party is a national of that Party; 
(e) “qualification procedures” means administrative procedures relating to the 
administration of qualification requirements; 
(f) “qualification requirements” means substan tive requirements which a service supplier 
is required to fulfil in order to obtain certification or a licence;  
(g) “service consumer” means any person that receives or uses  a service; 
(h) “supply of a service” includes the production, distribution, marketing, sale and 
delivery of a service; and 
(i) “trade in services” is defined as the supply of a service: 
(i) from the territory of a Party into the territory of the other Party; 
(ii) in the territory of a Party to the service consumer of the other Party; 
(iii) by a service supplier of a Party, throu gh commercial presence in the territory 
of the other Party; 
(iv) by a service supplier of a Party, through presence of natural persons of a 
Party in the territory of the other Party. 
Article 803 
 
Scope
 
 1. This Chapter shall apply to measures by the Parties affecting trade in services. 
2. This Chapter shall not apply to: 
(a) subsidies or grants provided by a Party 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 servi ces, service consumers or service suppliers;  
(b) a service supplied in the exercise of govern mental authority within the territory of 
each respective Party, which means any service which is supplied neither on a commercial basis nor in competition with one or more service suppliers;  WT/REG185/1 
 Page 37 
 
 
(c) laws, regulations or policies governing the procurement by governmental agencies of 
services purchased for governmental purposes and not with a view to commercial 
resale or with a view to use in the supply of services for commercial sale; 
(d) measures affecting natural persons seeking access to the employment market of a 
Party; or 
(e) measures regarding citizenship, residence or employment on a permanent basis. 
3. Nothing in this Chapter shall prevent a Party from maintaining and introducing measures to 
regulate service sectors within its territory, provided that such measures are applied on a non-discriminatory basis without the intention to nullify or impair the benefits accruing to the other Party 
under the terms of this Chapter.  
4. Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of 
natural persons of the other Party into, or thei r temporary stay in, its territory, including those 
measures necessary to protect the integrity of, and to  ensure the orderly movement of natural persons 
across, its borders, provided that such measures are not applied in such a manner as to nullify or 
impair the benefits accruing to the other Party unde r the terms of a specific commitment. The sole fact 
of requiring a visa for natural persons of certain c ountries and not for those of others shall not be 
regarded as nullifying or impairing benefits under a specific commitment. 
5. Unless they are specifically defined in this Chapte r or in Annex 8, terms used in this Chapter 
and in Annex 8 that are also used in GATS shall be construed in accordance with their meaning in 
GATS, mutatis mutandis . 
Article 804 
 
Denial Of Benefits
 
  Subject to prior notification and consultation, a Party may deny the benefits of this Chapter to 
a service supplier of the other Party where the Party establishes that the service supplier is owned or 
controlled by persons of a non-Party. 
  
PART II: GENERAL OBLIGATIONS AND DISCIPLINES 
 
Article 805 
 
Payments And Transfers
 
  Subject to Article 1605, a Party shall not appl y restrictions on international transfers and 
payment for current transactions
3  relating to its specific commitments.  
 
Article 806 
 
Recognition  
 1. For the purposes of the fulfilment of its standards or criteria for the authorisation, licensing or 
certification of services suppliers, each Party may recognise the education or experience obtained, 
requirements met, or licences or certifications gran ted in the other Party.  Such recognition may be 
                                                     
 
3 "Current transactions" refers to current transactions as defined by the International Monetary Fund 
(IMF). WT/REG185/1 
Page 38  
 
based upon an agreement or arrangement between the Parties. The Parties acknowledge that, wherever 
appropriate, recognition shoul d be based on multilaterally agreed criteria.   
2. The Parties shall encourage their relevant competent bodies to enter into negotiations on 
recognition of qualification requirements, quali fication procedures, licensing or registration 
procedures with a view to the achievement of early  outcomes.  Such commitments may be set out as 
additional commitments in Annex 8. 
Article 807 
 
Other Rights And Obligations
 
 
1. The Parties are deemed to have the same ri ghts and obligations under this Agreement that 
they would have under the relevant GATS provisions, mutatis mutandis , if the market access and 
national treatment commitments inscribed in Anne x 8 were inscribed in their respective specific 
commitments annexed to GATS. 
2. The relevant GATS provisions are: Articles VI (1), (2), (3), (5) and (6); VIII (1), (2), (5); the 
Annex on Financial Services; the Anne x on Air Transport Services, paragraphs (1), (2), (3), (4), (6); 
and the Annex on Telecommunicati ons, paragraphs (1) – (5). 
 
PART III: COOPERATION 
 
Article 808 
 
Areas Of Cooperation  
 1. The Parties shall strengthen and enhance exis ting cooperation efforts in service sectors and 
develop cooperation in sectors that are not cove red by existing cooperati on arrangements, through 
inter alia : 
(a) research and development; 
(b) human resource and professional de velopment and apprenticeship; 
(c) trade in services data management; and 
(d) small and medium enterprises capacity enhancement. 
2. The Parties shall foster the development of coope ration in education, healthcare, and tourism. 
3. The Parties shall work cooperatively to promote the facilitation of temporary entry of 
business people in particular, through developing th e capacity to grant applications offshore for 
business entry.  
  WT/REG185/1 
 Page 39 
 
 
PART IV: SPECIFIC COMMITMENTS 
 
Article 809 
 
Market Access  
 
1. With respect to market access through the mod es of supply identified in Article 802 (i), each 
Party shall accord services and service suppliers of the other Party treatment no less favourable than 
that provided for under the terms, limitations a nd conditions agreed and specified in Annex 8. 
2. In sectors where market access commitments are undertaken, the measures which a Party 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in Annex 8, are:  
(a) limitations on the number of service supplie rs whether in the form of numerical 
quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test; 
(b) limitations on the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test;  
(c) limitations on the total number of service ope rations or on the total quantity of service 
output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test (this does not cover measures which limit inputs for the supply of services);  
(d) limitations on the total number of natura l persons that may be employed in a 
particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical 
quotas or the requirement of an economic needs test; 
(e) measures which restrict or require specific types of legal entity or joint venture 
through which a service supplier may supply a service; and  
(f) limitations on the participation of forei gn capital in terms of maximum percentage 
limit on foreign shareholding or the total value of individual or aggregate foreign investment. 
Article 810 
 
National Treatment
 
 1. In the sectors inscribed in Annex 8, and subject  to any conditions and qualifications set out 
therein, each Party shall accord to services and service suppliers of the other Party, in respect of all 
measures affecting the supply of services, treatment no less favourable than that it accords to its own 
like services and service suppliers.
4   
2. A Party may meet the requirement of Paragraph 1 by according to services and service 
suppliers of the other Party, either formally identical  treatment or formally different treatment to that 
it accords to its own like services and service suppliers. 
                                                      
4 Specific commitments assumed under this Article shall not be construed to require any Party to 
compensate for any inherent competitive disadvantages wh ich result from the foreign character of the relevant 
services or service suppliers. WT/REG185/1 
Page 40  
 
3. Formally identical or formally different treatment  shall be considered to be less favourable if 
it modifies the conditions of competition in favour of services or service suppliers of the Party compared to like services or service suppliers of the other Party. 
Article 811 
 
Additional Commitments
 
  The Parties may negotiate commitments with r espect to measures affecting trade in services 
not subject to scheduling under Article 809 or 810,  including those regarding qualifications, 
standards, registration or licensing matters. Such  commitments shall be inscribed in Annex 8. 
 
 
PART V: PROGRESSIVE LIBERALISATION AND DEVELOPMENT OF RULES 
 
Article 812 
 
Review Of Commitments
 
 1. In pursuance of the objectives of this Chapter, th e Parties shall enter into further negotiations 
on trade in services within three years from the date of entry into force of this Agreement with the aim 
of enhancing the overall commitments undertak en by the Parties under this Agreement. 
2. In negotiating further commitments in accordance with this Article, the Parties shall recognise 
the provisions of Article V (1) and (3) of GATS. 
3. If, after this Agreement enters into force, a Party enters into any agreement on trade in 
services with a non-Party, it shall consider a request by the other Party for the incorporation in this 
Agreement of treatment no less favourable than  that provided under the former agreement. 
4. If, after this Agreement enters into force, a Pa rty further liberalises any of its services sectors, 
sub-sectors or activities, it shall consider a request by the other Party for the incorporation in this 
Agreement of the unilateral liberalisation. 
5. If, after this Agreement enters into force, a service previously supplied in the exercise of 
governmental authority is subsequently supplied on a commercial basis or in competition with one or 
more service suppliers, the Party concerned shall consider a request by the other Party for the 
incorporation in this Agreement of new commitments relating to that service.  
Article 813 
 
Schedules Of Specific Commitments
 
 
1. Each Party shall set out in a schedule the sp ecific commitments it undertakes under Part IV of 
this Chapter. With respect to sectors where su ch commitments are undertaken, each Schedule shall 
specify: 
(a) terms, limitations and conditions on market access; 
(b) conditions and qualificatio ns on national treatment; 
(c) undertakings relating to additional commitments; 
(d) where appropriate the time frame for implementation of such commitments; and   WT/REG185/1 
 Page 41 
 
 
(e) the date of entry into force of such commitments. 
2. Schedules of specific commitments shall be anne xed to this Agreement and shall form an 
integral part thereof. 
Article 814 
 
Modification Of Commitments  
  By giving three months written notification to  the other Party, a Party may modify its 
commitments.  At the request of the other Party, th e modifying Party shall enter into negotiations with 
a view to reaching agreement on any necessary comp ensatory adjustment required to maintain a 
general level of mutually advantageous commitment s not less favourable to trade than that provided 
for in schedules of specific commitments prior to su ch negotiations.  If agreement is not reached, the 
matter may be referred to arbitra tion in accordance with Chapter 18. 
 
Article 815 
 
References To GATS
 
  All references to GATS in this Chapter are to GATS in effect on the date of entry into force 
of this Agreement.  If, after that date, a Party alters its schedule of specific commitments annexed to GATS, GATS is amended or the results of the nego tiations provided for in GATS Articles VI (4), X 
(1), XIII (2) or XV (1) enter into force, this Chapter shall be ame nded, as appropriate, by agreement 
between the Parties.  
Article 816 
 
Preservation Of GATS Rights
 
  This Agreement shall not diminish the scope of any commitment made by either Party under 
GATS to which the other Party has access.   
CHAPTER 9: INVESTMENT 
 
PART I: DEFINITIONS AND SCOPE 
 
Article 901 
 
Definitions
 
  For the purposes of this Chapter:  
(a) “covered investment” means, with respect to a Party, an investment in its territory of 
an investor of the other Party in existence as of the date of entry into force of this 
Agreement or established, acquired or expanded thereafter and which has been 
admitted by the latter Party in accordance w ith its laws, regulations and policies; 
(b) “freely useable currency” means a “freely useable currency” as determined by the 
International Monetary Fund under the Artic les of Agreement of the International 
Monetary Fund and amendments thereafter, or any currency that is used to make 
international payments and is widely traded  in the international principal exchange 
markets; WT/REG185/1 
Page 42  
 
(c) “direct investment” means a direct invest ment as defined by the International 
Monetary Fund under its Bala nce of Payments manual, fifth edition (BMP 5), as 
amended; 
(d) “measure” means any measure by a Party, whether in the form of a law, regulation, 
rule, procedure, decision, administrative  action, or any other form, and includes 
measures taken by: 
(i) central, regional or local governments and authorities; and 
(ii) non-governmental bodies in the exercise of powers delegated by central, 
regional or local governments or authorities;  
in fulfilling its obligations under this Chapte r, each Party shall take such reasonable 
measures as may be available to it to ensu re their observance by regional and local 
governments and authorities and non-governmental bodies within its territory; 
 
(e) “permanent resident” means a natural person whose residence in a Party is not limited 
as to time under its law; and 
(f) “return” means an amount yielded by or derived from an investment, including 
profits, dividends, interest, capital gains, royalty payments, payments in connection 
with intellectual property rights, and all other lawful income. 
Article 902 
 
Application Of Chapter
 
 
1. This Chapter shall not apply to subsidies or gr ants provided by a Party 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 investors and investments. 
2. This Chapter shall not apply to laws, regula tions or policies governing the procurement by 
governmental agencies of goods and services purch ased for governmental purposes and not with a 
view to commercial resale or with a view to u se in the production of goods or the supply of services 
for commercial sale. 
3. This Chapter shall not prevent an investor  of one Party from taking advantage of the 
provisions of any law, regulation or policy of th e other Party which is more favourable than the 
provisions of this Chapter. 
 
PART II: LIBERALISATION OF INVESTMENTS 
 
Article 903 
 
Scope  
 1. This Part applies to measures adopted or maintained by a Party relating to: 
(a) direct investments of investors of the other Party; and 
(b) investors of the other Party,  WT/REG185/1 
 Page 43 
 
 
unless the measure is a measure by that Party affec ting trade in services as set out in Article 803 (1). 
 
Article 904 
 
Pre-Establishment National Treatment  
 
 In the sectors inscribed in Annex 8, and subj ect to any conditions and qualifications set out 
therein, each Party shall accord to investors of the other Party treatment no less favourable than it 
accords, in like circumstances, to its own investors,  with respect to the establishment and acquisition 
of investments in its territory. 
 
Article 905 
 
Denial Of Benefits  
 
 Subject to prior notification and consultation, a Pa rty may deny the benefits of this Part to an 
investor of the other Party that is a juridical pers on of such Party and to investments of such an 
investor where the Party establishes that the juridi cal person is owned or c ontrolled by persons of a 
non-Party.   
PART III: POST-ESTABLISHMENT NATIONAL TREATMENT 
 
Article 906 
 
Scope
 
 
 This Part applies to measures adopted  or maintained by a Party relating to: 
 
(a) covered investments; and 
(b) investors of the other Party, but only in  respect of such investors’ management, 
conduct, operation and sale or other disposition of covered investments, 
unless the measure is a measure by that Party affecting trade in services under Article 803 (1). 
 
Article 907 
 
Post-Establishment National Treatment  
 
1. Each Party shall accord to covered investment s treatment no less favourable than it accords, 
in like circumstances, to investment s in its territory of its own investors, unless otherwise specified in 
its specific commitments as set out in Annex 8. 
2. Each Party shall accord to investors of the ot her Party treatment no less favourable than it 
accords, in like circumstances, to its own inv estors, unless otherwise specified in its specific 
commitments as set out in Annex 8. 
 WT/REG185/1 
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PART IV: PROMOTION AND PROTECTION OF INVESTMENTS 
 
Article 908 
 
Scope
 
 
1. Except for Paragraph 2 and Article 914, this Part  applies to measures adopted or maintained 
by a Party relating to: 
(a) covered investments which, if so required,  have been specifically approved in writing 
by the competent authorities concerned of  the other Party as being entitled to the 
benefits of an agreement re lating to investments; and 
(b) investors of the other Party, but only in  respect of such investors’ management, 
conduct, operation and sale or other dispositi on of the covered investments referred to 
in Sub-paragraph (a). 
2. Each Party shall accord to: 
(a) investors of the other Party treatment no less favourable than it accords, in like 
circumstances, to investors of any non-Party; and 
(b) investments of investors of the other Pa rty treatment no less favourable than it 
accords, in like circumstances, to invest ments of investors of any non-Party 
with respect to measures adopted or maintained  by a Party relating to the requirements (if 
any) that need to be satisfied for investors and investments to receive the benefits of an 
agreement relating to investments, as referred to in Sub-paragraph (1)(a). 
 3. Where a juridical person of a Party is owned or controlled by a national or a juridical person 
of any third country, the Parties may decide join tly in consultation not to extend the rights and 
benefits of this Part to such juridical person. 
4. A juridical person duly constituted or otherwise organised under the law of a Party shall not 
be treated as an investor of the other Party, but any investments in that juridical person by investors of 
that other Party shall be protected by this Part. 
5. This Part shall not apply to a natural person w ho is a permanent resident but not a national of 
either Party where the provisions of an investment  agreement between the other Party and the country 
of which the person is a national have already been invoked in respect of the same matter. 
Article 909 
 
Promotion And Protection Of Investments
 
 1. Each Party shall encourage and promote investment s in its territory by investors of the other 
Party. 
2. Each Party shall ensure fair and equitable tr eatment in its own territory of investments. 
3. Each Party shall accord within its territo ry protection and security to investments. 
  WT/REG185/1 
 Page 45 
 
 
Article 910 
 
Most Favoured Nation Treatment  
 1. Each Party shall accord to investors of the ot her Party treatment no less favourable than it 
accords, in like circumstances, to  investors of any non-Party. 
2. Each Party shall accord to all covered invest ments treatment no less favourable than it 
accords, in like circumstances, to investments in its territory of investors of any non-Party. 
Article 911 
 
Denial Of Benefits
 
  Subject to prior notification and consultation, a Pa rty may deny the benefits of this Part to an 
investor of the other Party that is a juridical pers on of such Party and to investments of such an 
investor where the Party establishes that the juridi cal person is owned or c ontrolled by persons of a 
non-Party and has no substantive business operati ons in the territory of the other Party. 
 
Article 912 
 
Expropriation
 
 
1. Neither Party shall nationalise, expropriate or s ubject to measures having effect equivalent to 
nationalisation or expropriation (hereinafter re ferred to as “expropriation”) the investments of 
investors of the other Party unless the following conditions are complied with: 
(a) the expropriation is for a public purpose relate d to the internal needs of that Party and 
under due process of law; 
(b) the expropriation is non-discriminatory; and 
(c) the expropriation is accompanied by the paym ent of prompt, adequate and effective 
compensation. 
2. The compensation referred to in Sub-paragraph 1( c) of this Article shall be computed on the 
basis of the market value of the investment i mmediately before the expropriation or impending 
expropriation became public knowledge.  Where that value cannot be readily ascertained, the 
compensation shall be determined in accordance with  generally recognised principles of valuation and 
equitable principles taking into account, where appr opriate, the capital invested, depreciation, capital 
already repatriated, replacement value, currency exch ange rate movements and other relevant factors. 
3. The compensation shall be paid without undue de lay, shall include interest at a commercially 
reasonable rate and shall be freely transferable betw een the territories of the Parties in a freely useable 
currency.  
Article 913 
 
Compensation For Losses  
  When a Party adopts any measures relating to lo sses in respect of investments in its territory 
by persons of any other country owing to war or ot her armed conflict, revolution, a state of national 
emergency, civil disturbance or other similar events , the treatment accorded to investors of the other WT/REG185/1 
Page 46  
 
Party as regards restitution, indemnification, co mpensation or other settlement shall be no less 
favourable than that which the first Party accords to persons of any third country. 
 
Article 914 
 
Payments And Transfers
 
 1. Subject to Article 1605, each Party shall, when re quested by an investor of the other Party, 
permit all funds of that investor related to an inv estment in its territory to be transferred freely and 
without undue delay in a freely useable currency into and out of its territory.
5 Such funds include the 
following: 
(a) the initial capital plus any additional cap ital used to maintain or expand the 
investment; 
(b) returns; 
(c) proceeds from the sale or partial sale or liquidation of the investment; 
(d) repayments of a claim to money; 
(e) payment for the losses referred to in Article 913; and  
(f) earnings and other remuneration of pers onnel engaged from abroad in connection 
with that investment. 
2. Unless otherwise agreed by the investor and the Party concerned, transfers shall be made at 
the market exchange rate prevailing on the date of transfer in accordance with the laws, regulations 
and policies of the Party that admitted the investment. 
3. Notwithstanding Paragraphs 1 and 2, a Party may prevent a transfer through the equitable, 
non-discriminatory and in good faith ap plication of its laws relating to: 
(a) bankruptcy, insolvency or the protection of the rights of creditors; or 
(b) ensuring the satisfaction of judgements in adjudicatory proceedings. 
Article 915 
 
Subrogation  
 1. If a Party or an agency of a Party makes a pa yment to an investor of that Party under a 
guarantee, a contract of insurance against non-comme rcial risks or other form of indemnity it has 
granted in respect of an investment, the other Part y shall recognise the subrogation or transfer of any 
right or title in respect of such investment. The subr ogated or transferred right or claim shall not be 
greater than the original right or claim of the investor. 
2. Where a Party or an agency of a Party has made  a payment to an investor of that Party and 
has taken over rights and claims of the investor, that investor shall not, unless authorised to act on 
                                                     
 
5 This includes funds of an investor of the other Party that are to be used to establish or acquire an 
investment in the territory of a Party where such a transf er would be required so as not to nullify or impair a 
commitment of a Party covered by this Chapter.  WT/REG185/1 
 Page 47 
 
 
behalf of the Party or the agency of the Party making the payment, pursue those rights and claims 
against the other Party. 
Article 916 
 
Access to Dispute Settlement Mechanisms  
 
1. Each Party shall in accordance with its laws, regulations and policies: 
 
(a) provide investors of the other Party who have made investments within its territory 
and personnel employed by them for activiti es associated with i nvestments full access 
to its competent judicial or administrative bodies in order to afford means of asserting 
claims and enforcing rights in respect of disputes with its own investors; 
(b) permit its investors to select means of their choice to settle disputes relating to 
investments with the investors of the other Party, including arbitration conducted in a 
third country; and 
(c) ensure the enforcement of any resulting judgments or awards. 
2. Nothing in this Article requires a Party to recognise or enforce the judgments or awards of the 
judicial or administrative bodies of the other Party or of a non-Party. 
Article 917 
 
Settlement Of Disputes Between A Party And An Investor Of The Other Party  
 
1. In the event of a dispute between a Party and an investor of the other Party relating to a 
covered investment, consultations shall take place between the parties concerned with a view to 
resolving the case amicably. 
2. If the dispute in question cannot be reso lved through consultations and negotiations6, the 
dispute may, at the choice of the investor, be: 
(a) initiated before the Party’s competent judici al or administrative bodies, in accordance 
with the laws and regulations of the Party; or 
(b) resolved by an international ad hoc arbitr al tribunal established under the Arbitration 
Rules of the United Nations Commission on International Trade Law (UNCITRAL). 
3. If, after the entry into force of this Agreement,  a Party enters into an  international agreement 
with a non-Party7, that: 
(a) grants investors of that non-Party the right to submit to arbitration a claim relating to 
a dispute between that investor and th e Party relating to an investment; and 
(b) provides for a means to resolve the dispute that is not included in Paragraph 2; 
                                                      
6 The consultations and negotiations should, in principle, continue for three months. 
7 Excluding any international agreement with the members of the Association of South-East Asian 
Nations. WT/REG185/1 
Page 48  
 
then the investor of the other Party referred to in Paragraph 1 may, at its choice, use that means of 
resolving the dispute.  4. Once an action referred to in Paragraph 2 or 3 of  this Article has been taken, neither Party 
shall pursue the dispute through diplomatic channels unless: 
(a) the relevant dispute settlement body has deci ded that it has no jurisdiction in relation 
to the dispute in question; or 
(b) the other Party has failed to abide by or comply with any judgment, award, order or 
other determination made by the relevant dispute settlement body. 
5. In any proceeding involving a dispute relating to a covered investment, a Party shall not 
assert, at any stage of proceedings referred to in S ub-paragraph 2 (b) or Paragraph 3, that the investor 
concerned has received or will receive, pursu ant to an insurance or guarantee contract, 
indemnification or other compensation fo r all or part of any alleged loss. 
6. Any arbitral tribunal established under this Article sh all, in the event of a dispute related to an 
alleged breach of an obligation of this Chapter, r each its decision on the basis of the provisions of the 
present Agreement, as well as applicable rules of international and domestic law. 
7. All arbitral awards shall be final and binding on the parties to the dispute. 
8. All sums received or payable as a result of a se ttlement shall be freely transferable in a freely 
useable currency. 
9. This Article shall not be construed to allow an  investor of a Party to pursue a claim against 
the other Party in relation to any decision that any foreign investment authority of that Party makes in 
relation to, or conditions that any foreign investment  authority of that Party may have placed on, the 
establishment, acquisition or expansion of an invest ment by that investor, or in relation to the 
enforcement of any such conditions. 
 
PART V: MODIFICATION AND REVIEW OF COMMITMENTS 
 
Article 918 
 
Modification Of Commitments
 
  By giving three months’ written notification to the other Party, a Party may modify its 
commitments.  At the request of the other Party, th e modifying Party shall enter into negotiations with 
a view to reaching agreement on any necessary adjustment required to maintain a general level of mutually advantageous commitments not less favourable  to trade than that pr ovided for in schedules 
of specific commitments prior to such negotiations .  If agreement is not reached, the matter may be 
referred to arbitration in accordance with Chapter 18. 
 
Article 919 
 
Review Of Commitments
 
 1. If, after this Agreement enters into force, a Party enters into any agreement on investment 
with a non-Party, it shall consider a request by the other Party for the incorporation in this Agreement 
of treatment no less favourable than that  provided under the former agreement.  WT/REG185/1 
 Page 49 
 
 
2. If, after this Agreement enters into force, a Party further liberalises any of its measures 
applying to investors or investments, it shall consider a request by the other Party for the incorporation in this Agreement of the unilateral liberalisation. 
 
CHAPTER 10: MOVEMENT OF NATURAL PERSONS 
 
Article 1001 
 
Objectives
 
 
 The objectives of this Chapter are: 
 
(a) to provide for rights and obligations add itional to those set out in Chapter 8 and 
Chapter 9 in relation to the movement of natural persons between the Parties; and 
(b) to enhance the mobility of natural persons of  either Party engaged in the conduct of 
trade and investment between the Parties, by facilitating temporary business entry and 
establishing simplified and transparent i mmigration formalities for business persons. 
Article 1002 
 
Definitions  
 
 For the purposes of this Chapter: 
 
(a) “business visitor” means a natural person of either Party who is: 
(i) a service seller; 
(ii) an investor of a Party, or a representative of an investor, seeking temporary 
entry to establish an investment; or  
(iii) seeking temporary entry for the purpo ses of negotiating the sale of goods 
where such negotiations do not involve direct sales to the general public; 
(b) “contractual service supplier” means a natu ral person of a Party who satisfies any 
requirements under the laws, regulations and policies of the other Party or satisfies 
any recognition of standards requirements or criteria agreed by the Parties to provide 
such services in the territory of that Party, and: 
(i) is an employee of a service supplier or a juridical person of a Party not 
having a commercial presence or investme nt in the other Party, which has 
concluded a service contract with a juri dical person registered and engaged in 
substantive business operations in the other Party; or 
(ii) is a national of a Party and employed under an employment contract by a 
juridical person registered and engaged in substantive business operations in 
the other Party; 
and is seeking temporary entry to provide a service as a manager, executive or 
specialist; 
 WT/REG185/1 
Page 50  
 
(c) “executive” means a natural person within an organisation who primarily directs the 
management of the organisation, exercises wide latitude in decision making, and receives only general supervision or direc tion from higher-level executives, the board 
of directors, or stockholders of the business.  An executive would not directly perform tasks related to the actual provision of the service or the operation of an 
investment; 
(d) “immigration formality” means a visa, work permit, or other document or electronic 
authority granting a natural person of one Party the right to reside or work in the territory of the other Party; 
(e) “intra-corporate transferee” means an employee of a service supplier, investor or 
juridical person of a Party established in the territory of the other Party through a 
branch or affiliate, and who is a manager, executive or specialist; 
(f) “manager” means a natural person within an  organisation who primarily directs the 
organisation or a department or sub-divi sion of the organisation, supervises and 
controls the work of other supervisory, professional or managerial employees, has the 
authority to hire and fire or take other personnel actions (such as promotion or leave 
authorisation), and exercises discretionary authority over day-to-day operations. This 
does not include a first-line supervisor unless the employees supervised are professionals; 
(g) “service seller” means a natural person of a Party who is a sales representative of a 
service supplier of that Party and is seeking temporary entry to the other Party for the 
purpose of negotiating the sale of services for that service supplier, where such a 
representative will not be engaged in making di rect sales to the general public or in 
supplying services directly; 
(h) “specialist” means a natural person with in an organisation who possesses knowledge 
at an advanced level of technical exper tise, and who possesses proprietary knowledge 
of the organisation’s service, research equi pment, techniques, or management; or a 
natural person with high-level technical or professional qualifications and skills and 
experience; and 
(i) “temporary entry” means entry by a business vi sitor, or an intra-corporate transferee, 
or a contractual service supplier as the case may be, without the intent to establish permanent residence and for the purpose of  engaging in activities which are clearly 
related to their respective business purposes.  Additionally, in the case of a business 
visitor, the salaries of and any related payments to such a visitor should be paid entirely by the service supplier or juridical person which employs that visitor in the visitor’s home country.  
Article 1003 
 
Scope
 
 1. This Chapter shall apply to measures affecti ng the movement of natural persons of a Party 
into the territory of the other Party where such persons are:  
(a) contractual service suppliers of the first Party; 
(b) intra-corporate transferees of the first Party;  WT/REG185/1 
 Page 51 
 
 
(c) service sellers of the first Party; 
(d) investors of the first Party in respect of an investment of that investor in the territory 
of the other Party; or 
(e) natural persons employed by an investor of the first Party in respect of an investment 
of that investor in the territory of the other Party. 
2. This Chapter shall not apply to measures a ffecting natural persons seeking access to the 
employment market of a Party, or measures regarding citizenship, residence or employment on a permanent basis. 
Article 1004 
 
Short-Term Temporary Entry
 
  A Party shall, upon application by a business vi sitor of the other Party who meets its criteria 
for the grant of an immigration formality, gran t that business visitor, through the issue of an 
immigration formality, the right to temporary entry in  the granting Party’s territory for a period of up 
to 90 days. 
 
Article 1005 
 
Long-Term Temporary Entry
 
 
 A Party shall, in accordance with  commitments in Annex 8, grant temporary entry to an intra-
corporate transferee or a contractual service supplier of the other Party who meets its criteria for the grant of an immigration formality unless there has been a breach of any of the conditions governing 
temporary entry, or an application for an extensi on of an immigration form ality has been refused on 
such grounds of national secur ity or public order by the granting Party as it deems fit. 
 
Article 1006 
 
Provision Of Information
 
  A Party shall publish or otherwise make availabl e to the other Party such information as will 
enable the other Party to become acquainted with its measures relating to this Chapter. 
 
Article 1007 
 
Immigration Measures
 
 
 Nothing in this Chapter shall prevent a Part y from applying measures to regulate the entry of 
natural persons of the other Party into, or thei r temporary stay in, its territory, including those 
measures necessary to protect the integrity of, and to  ensure the orderly movement of natural persons 
across its borders, provided that such measures are no t applied in such a manner as to nullify or impair 
the benefits accruing to the other Party under the term s of this Chapter. The sole fact of requiring a 
visa for natural persons of certain countries and no t for those of others shall not be regarded as 
nullifying or impairing benefits under a specific commitment.  WT/REG185/1 
Page 52  
 
Article 1008 
 
Expeditious Application Procedures
 
  A Party shall process expeditiously applications for immigration formalities from natural 
persons of the other Party, including further immigr ation formality requests or extensions thereof.  
 
 
CHAPTER 11: ELECTRONIC COMMERCE 
 
Article 1101 
 
Objectives And Definitions
 
 1. The Parties recognise the economic growth and opportunities provided by electronic 
commerce, the importance of avoiding barriers to its use and development, and the applicability of 
relevant WTO rules. 
2. The objective of this Chapter is to promot e electronic commerce between the Parties, 
including by encouraging coope ration on e-commerce alliances. 
3. For the purposes of this Chapter: 
(a)  “electronic version” means a document in an electronic format prescribed by a Party, 
including a document sent by facsimile transmission; and 
(b) “trade administration documents” means pa per forms issued or controlled by the 
Government of a Party which must be comple ted by or for an importer or exporter in 
relation to the import or export of goods. 
Article 1102 
 
Customs Duties
 
  Each Party shall maintain its current practice of not imposing customs duties on electronic transmissions between Thailand and Australia.  
Article 1103 
 
Domestic Regulatory Frameworks
 
 1. Each Party shall maintain domestic legal fra meworks governing electronic transactions based 
on the UNCITRAL Model Law on Electronic Commerce 1996.  
2. Each Party shall: 
(a) minimise the regulatory burden on electronic commerce; and 
(b) ensure that regulatory frameworks support industry-led development of electronic 
commerce.   WT/REG185/1 
 Page 53 
 
 
Article 1104 
 
Electronic Authentication And Digital Certificates  
 1. Each Party shall maintain domestic legisl ation for electronic authentication that: 
(a) permits parties to electronic transactions to determine the appropriate authentication 
technologies and implementation models for their electronic transactions, without limiting the recognition of such technol ogies and implementation models; and 
(b) permits parties to electronic transactions to ha ve the opportunity to prove in court that 
their electronic transactions comply with any legal requirements. 
2. The Parties shall work towards the mutual r ecognition of digital certificates at government 
level, based on internationally accepted standards. 
3. The Parties shall encourage the interoperability of digital certificates in the business sector. 
Article 1105 
 
Online Consumer Protection
 
  Each Party shall, to the extent possible and in  a manner considered appropriate by each Party, 
provide protection for consumers using electronic co mmerce that is at least equivalent to that 
provided for consumers of other forms of comm erce under their respective laws, regulations and 
policies. 
 
Article 1106 
 
Online Personal Data Protection
 
 
1. Notwithstanding the differences in existing syst ems for personal data protection in the 
territories of the Parties, each Party shall take su ch measures as it considers appropriate and necessary 
to protect the personal data of users of electronic commerce. 
2. In the development of data prot ection standards, each Party shall, to the extent possible, take 
into account international standards and the crite ria of relevant international organisations. 
Article 1107 
 
Paperless Trading  
 1. Each Party shall accept the electronic format of  trade administration documents as the legal 
equivalent of paper documents except where: 
(a) there is a domestic or international le gal requirement to the contrary; or 
(b) doing so would reduce the effectivenes s of the trade administration process. 
2. The Parties shall cooperate bilaterally and in international forums to enhance acceptance of 
electronic versions of trade administration documents. WT/REG185/1 
Page 54  
 
Article 1108 
 
Cooperation On E-Commerce
 
 1. The Parties shall encourage cooperation in resear ch and training activities that would enhance 
the development of e-commerce, including by sh aring best practices on e-commerce development 
2. The Parties shall encourage cooperative activ ities to promote e-commerce, including those 
that would improve the effectiveness and efficiency of e-commerce. 
Article 1109 
 
Non-Application Of Dispute Settlement Provisions
 
  Except for Article 1102, Chapter 18 shall not apply to the provisions of this Chapter.   
CHAPTER 12: COMPETITION POLICY 
 
Article 1201 
 
Objective And Definitions
 
 
1. The aim of this Chapter is to contribute to th e fulfilment of the objectives of this Agreement 
through the promotion of fair competition and the curtailment of anti-competitive practices. 
2. For the purposes of this Chapter, “anti- competitive practices” means business conduct or 
transactions that adversely affect competition, such as: 
(a) anti-competitive horizontal arrangements between competitors; 
(b) misuse of market power, including predatory pricing; 
(c) anti-competitive vertical arrangements; and 
(d) anti-competitive mergers and acquisitions. 
Article 1202 
 
Promotion Of Competition  
 
 Each Party shall promote competition by addr essing anti-competitive practices in its territory, 
and by adopting and enforcing such means or me asures as it deems appropriate and effective to 
counter such practices.  
Article 1203 
 
Application Of Competition Laws
 
 1. The Parties shall ensure that all businesses are subject to such generic or relevant sectoral 
competition laws as may be in force in their respective territories.  WT/REG185/1 
 Page 55 
 
 
2. Any measures taken by a Party to proscribe anti-competitive practices, and the enforcement 
actions taken pursuant to those measures, shall be consistent with the principles of transparency, 
timeliness, non-discrimination, comprehensiveness and procedural fairness. 
Article 1204 
 
Exemptions  
  Either Party may exempt specific measures or sectors from this Chapter, provided that such 
exemptions are transparent and are undertaken on the grounds of public policy or public interest. 
 
Article 1205 
 
Cooperation And Exchange Of Information
 
  The Parties recognise the importance of coope ration and coordination in achieving effective 
enforcement outcomes under their respective comp etition laws.  The Parties also recognise the 
importance of confidentiality in respect of these arrangements.  Accordingly, the Parties shall 
cooperate, where appropriate, on issues of comp etition law enforcement, including through the 
exchange of information, notification, consultation,  and coordination of enforcement matters that are 
cross-border in nature.  
Article 1206 
 
Consultations And Review
 
 1. At the request of either Party, the Parties sha ll consult with a view to eliminating particular 
anti-competitive practices that affect trad e or investment between the Parties. 
2. Within three years of the entry into force of th is Agreement, the Parties shall consult in order 
to review the scope and operation of this Chapter with a view to negotiating amendments to this 
Chapter that may be necessary to en sure the comprehensive protection in their respective territories of 
the legitimate commercial interests of businesses of the other Party. 
3. In undertaking any consultations in accordance with Paragraph 2, the Parties shall also 
discuss the desirability of concluding arrangeme nts for cooperation and mutual assistance in 
competition policy and enforcement, either as am endments to this Ch apter or as separate 
arrangements between their respective competition authorities. 
4. Any information or documents exchanged betw een the Parties in relation to any mutual 
consultation or review conducted pursuant to the provi sions of this Chapter shall be kept confidential. 
Neither Party shall, except to comply with its dom estic legal requirements, release or disclose such 
information or documents to any person without the written consent of the Party that provided such 
information or documents. Where the disclosure of such information or documents is necessary to comply with the domestic legal requirements of a Part y, that Party shall notify the other Party before 
such disclosure is made. 
Article 1207 
 
Transparency
 
  The Parties shall publish or otherwise make publicly available their laws promoting fair 
competition and their laws addressing anti-competitive practices. 
 WT/REG185/1 
Page 56  
 
Article 1208 
 
General
 
 1. Chapter 18 shall not apply to the provisions of this Chapter. 
2. In the event of any inconsistency or conflict between any provision in this Chapter and any 
provision contained in any other Chapter of this Ag reement, the latter shall prevail to the extent of 
such inconsistency or conflict. 
 
CHAPTER 13: INTELLECTUAL PROPERTY 
 
Article 1301 
 
Objective
 
 
1. The objective of this Chapter is to increase th e benefits from trade and investment through the 
protection and enforcement of intellectual property rights. 
2. “Intellectual property rights” refers to copyri ght and related rights, rights in trade marks, 
geographical indications, industrial designs, patents, and lay-out desi gns (topographies) of integrated 
circuits, rights in plant varieties, and rights in undi sclosed information, as defined and described in the 
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights. 
Article 1302 
 
Observance Of International Obligations  
  The Parties shall fully respect the provisions of the WTO Agreement on Trade-Related 
Aspects of Intellectual Property Rights  and any other multilateral agreement relating to intellectual 
property to which both are parties.  
Article 1303 
 
Measures To Prevent The Export Of Goods That Infringe Copyright or Trade Marks
 
 
 Each Party, on receipt of information or comp laints, shall take measures to prevent the export 
of goods that infringe copyright or trade marks, in  accordance with its laws, regulations, or policies. 
 
Article 1304 
 
Cooperation On Enforcement  
  The Parties shall cooperate with a view to eliminating trade in goods infringing intellectual 
property rights, subject to their respective laws , regulations, or policies. Such cooperation may 
include: 
 
(a) the notification of contact points for the enforcement of intellectual property rights; 
(b) the exchange, between respective agenci es responsible for the enforcement of 
intellectual property rights, of information concerning the infringement of intellectual property rights;  WT/REG185/1 
 Page 57 
 
 
(c) policy dialogue on initiatives for the enforcem ent of intellectual property rights in 
multilateral and regional fora; and 
(d) such other activities and initiatives for the enforcement of intellectual property rights 
as may be mutually determined by the Parties. 
Article 1305 
 
Other Cooperation  
  The Parties, through their competent agencies, shall:  
(a) exchange information and material on pr ograms pertaining to education in and 
awareness of intellectual property rights, and to commercialisation of intellectual 
property, to the extent permissible unde r their respective laws, regulations and 
policies; and 
(b) encourage and facilitate the development of contacts and cooperation between their 
respective government agencies, educati onal institutions, organisations and other 
entities concerning the protection and developm ent of intellectual property rights with 
a view to: 
(i) improving and strengthening the intellectual property administrative systems 
in areas such as patents examination and trademarks registration; 
(ii) stimulating the creation and developmen t of intellectual property by persons 
of each Party, particularly individual inventors and creators as well as small 
to medium-sized enterprises (SMEs); and 
(iii) enhancing the capacity of and opportuni ty for the owners of intellectual 
property rights to obtain the maximum utilisation and commercial benefits from those rights. 
 
CHAPTER 14: TRANSPARENT ADMINISTRATION OF LAWS AND REGULATIONS 
 
Article 1401 
 
Definition
 
 
 For the purposes of this Chapter, “administra tive ruling of general application” means an 
administrative ruling or interpretation that applies to all persons and fact situations that fall within its 
ambit and that establishes a norm of conduct, but does not include:  
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that 
applies to a particular person, good, service or investment of the other Party in a specific case; or 
(b) a ruling that adjudicates with respect to a particular act or practice. WT/REG185/1 
Page 58  
 
Article 1402 
 
Publication
 
 1. Each Party shall ensure that its laws, regul ations, and administrative rulings of general 
application pertaining to trade in goods, services and investment are promptly published or otherwise 
made available in such a manner as to enable in terested persons from the other Party to become 
acquainted with them. 
2. Each Party shall maintain an official journal or journals and publish any measures referred to 
in Paragraph 1 in such journals. Each Party shall publish such journals regularly and make copies of 
them readily available to the public. 
3. A Party may comply with Paragraphs 1 and 2 by publication on the Internet. 
4. When possible, a Party shall publish in advance an y measure referred to in Paragraph 1 that it 
proposes to adopt and shall provide, where applicable , interested persons a reasonable opportunity to 
comment on such proposed measures. 
5. Each Party shall endeavour promptly to provide  information and to respond to questions from 
the other Party pertaining to any meas ure referred to in Paragraph 1. 
Article 1403 
 
Contact Point
 
 
1. Each Party shall designate a contact point to facilitate communications between the Parties on 
any matter covered by this Agreement. 
2. Upon request, the contact point shall identify the office responsible for the matter and assist, 
as necessary, in facilitating communication with the requesting Party. 
Article 1404 
 
Administrative Proceedings  
  Each Party shall ensure in its administrative proceedings applying to any measure referred to 
in Article 1402 that:  
(a) wherever possible, persons of the other Party who are directly affected by a 
proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a d escription of the nature of the proceeding, 
a statement of the legal authority under  which the proceeding is initiated and a 
general description of the issues in question; 
(b) such persons are afforded a reasonable opportunity to present facts and arguments in 
support of their positions before  any final administrative ac tion, when time, the nature 
of the proceeding and the public interest permit; and 
(c) its procedures are in accordance with domestic law.  WT/REG185/1 
 Page 59 
 
 
Article 1405 
 
Review And Appeal  
  A Party shall ensure that, where warranted, a ppropriate domestic procedures are in place to 
enable prompt review and correction of final ad ministrative actions, other than those taken for 
prudential reasons, regarding matters covered by this Chapter, that: 
 
(a) provide for tribunals or panels that are impartial and independent of any office or 
authority entrusted with administrative enfo rcement and have no s ubstantial interest 
in the outcome of the matter; 
(b) provide parties to any proceeding with a reasonable opportunity to present their 
respective positions; 
(c) provide parties to any proceeding with  a decision based on  the evidence and 
submissions of record, or, where required by domestic law, the record compiled by 
the administrative authority; and 
(d) ensure, subject to appeal or further review  under domestic law, that  such decisions are 
implemented by, and govern the practice of, the offices or authorities regarding the administrative action at issue. 
 
CHAPTER 15: GOVERNMENT PROCUREMENT 
 
Article 1501 
 
Purpose
 
 
 The Parties recognise the importance of government procurement to their economies and the 
importance of covering government procurement in  this Agreement at the earliest opportunity. 
 
Article 1502 
 
Establishment Of Working Group  
 
1. A Working Group consisting of government representatives of the Parties having 
responsibility for government proc urement is hereby established. 
2. The Working Group shall meet regularly to discuss all relevant issues. 
3. The Working Group shall report to the FTA Joint Commission within 12 months of the entry 
into force of this Agreement with recommenda tions on the scope for commencing bilateral 
negotiations to bring government procurement under  this Agreement and the coverage of such 
negotiations. 
Article 1503 
 
Procurement Principles  
 
 In preparation for the outcome of the negotiati ons mandated by Article 1502, the Parties shall, 
to the extent possible, promote and apply tran sparency, value for money, open and effective WT/REG185/1 
Page 60  
 
competition, fair dealing, accountability and due pr ocess, and non-discrimination in their government 
procurement procedures.  
Article 1504 
 
Exchange Of Information On  Government Procurement
 
  The Parties shall, subject to their laws, regul ations and policies, exchange information in 
respect of their government procurement policies and practices. 
 
Article 1505 
 
Dispute Settlement
 
  Chapter 18 shall not apply to this Chapter unless specifically authorised by the further 
negotiations mandated by Article 1502. 
  
CHAPTER 16: GENERAL EXCEPTIONS 
 
Article 1601 
 
General Exceptions
 
 1. For the purposes of Chapters 2 – 7, Article XX of GATT 1994 is incorporated into and made 
part of this Agreement, mutatis mutandis . 
2. For purposes of Chapters 8 – 10, Article XIV of GATS is incorporated into and made part of 
this Agreement, mutatis mutandis . 
3. Article XX (e) – (g) of GATT 1994 is incorporat ed into and made part of Chapter 9, mutatis 
mutandis . 
Article 1602 
 
Security Exceptions
 
 1. For the purposes of Chapters 2 – 7, Article XXI  of GATT 1994 is incorporated into and made 
part of this Agreement, mutatis mutandis . 
2. For the purposes of Chapters 8 - 10, Article XI V bis of GATS is incorporated into and made 
part of this Agreement, mutatis mutandis . 
Article 1603 
 
Disclosure Of Information
 
  Nothing in this Agreement shall require a Pa rty to provide confidential information, the 
disclosure of which would impede law enforcement, or  otherwise be contrary to the public interest, or 
which would prejudice legitimate commercial interest s of particular enterprises, public or private. 
  WT/REG185/1 
 Page 61 
 
 
Article 1604 
 
Balance Of Payments  
 1. In the case of trade in goods, a Party may, in accordance with GATT 1994 and the 
Understanding on Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 
1994 , adopt restrictive import measures in order to safeguard its external financial position and its 
balance of payments. 
2. The Party adopting any restrictions under this Article shall initiate consultations with the 
other Party to review the restrictions adopted by it. 
Article 1605 
 
Restrictions To Safeguard The Balance Of Payments
 
 1. In the event of serious balance of payments and external financial difficulties or threat 
thereof, a Party may adopt or maintain restrictions on payments and transfers of funds of any investor 
of the other Party related to any investment cove red by Chapter 9 and international payments and 
transfers for current transactions
8  related to its specific commitments under Chapter 8.  It is 
recognised that particular pressures on the balance of payments of a Party in the process of economic development may necessitate the use of restrictions to ensure, inter alia , the maintenance of a level of 
financial reserves adequate for stable economic development. 
2. The restrictions referred to in Paragraph 1 shall: 
(a) be consistent with the Articles of Agreem ent of the International Monetary Fund; 
(b) avoid unnecessary damage to the commercial, economic and financial interests of the 
other Party; 
(c) not exceed those necessary to deal with th e circumstances described in Paragraph 1; 
(d) be temporary and be phased out progressively  as the situation specified in Paragraph 
1 improves; and 
(e) be applied on a national treatment basis and su ch that the other Party is treated no less 
favourably than any non-Party. 
3. In determining the incidence of such restricti ons, the Parties may give priority to economic 
sectors which are more essential to their economic deve lopment.  However, such restrictions shall not 
be adopted or maintained for the pur pose of protecting a particular sector. 
4. Any restrictions adopted or maintained under Pa ragraph 1, or any changes therein, shall be 
promptly notified to the other Party. 
5. The Party applying any restrictions under Para graph 1 shall commence consultations with the 
other Party in order to review the restrictions applied by it. 
                                                     
 
8 "Current transactions" refers to current transactions as defined by the International Monetary Fund. WT/REG185/1 
Page 62  
 
Article 1606 
 
Prudential Measures
 
  Nothing in this Agreement sh all prevent a Party from taking measures for prudential reasons, 
including for the protection of investors, depositors , policy holders or persons to whom a fiduciary 
duty is owed by a financial service
9 supplier, or to ensure the integrity and stability of the financial 
system.  Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the Party’s comm itments or obligations under this Agreement. 
 
Article 1607 
 
Taxation Measures
 
 1. This Agreement shall only grant rights or impose obligations with respect to taxation 
measures: 
(a) where a corresponding right or obligation is also granted or imposed by the WTO 
Agreement; and 
(b) under Article 912.
10 
2. If there is a dispute described in Article 917 (1) that may relate to a taxation measure, then the 
Parties, including representatives of their tax admi nistrations, shall hold cons ultations.  Any tribunal 
established under Article 917 shall accept a decision of  the Parties as to whether the measure in 
question is a taxation measure. 
3. In the event of any inconsistency relating to a taxation measure between this Agreement and 
the Agreement between the Kingdom of Thailand and Au stralia for the Avoidance of Double Taxation 
and the Prevention of Fiscal Evasion , done at Canberra on 31 August 1989,  the latter shall prevail.  
Any consultations between the Parties about whethe r an inconsistency relates to a taxation measure 
shall include representatives of the tax administration of each Party.11 
 
CHAPTER 17: INSTITUTIONAL PROVISIONS 
 
Article 1701 
 
Establishment Of The Free Trade Agreement Joint Commission  
  A Free Trade Agreement Joint Commission (FTA  Joint Commission) shall be established to 
ensure the proper implementation of this Agre ement and to review periodically the economic 
relationship and partnership between  the Parties. The FTA Joint Commission may meet at the level of 
ministers or senior officials, as mutually determined from time to time by the Parties. Each Party shall 
be responsible for the composition of its delegation. 
                                                     
 
9 A "financial service" is any service of a financial nature offered by a service supplier of a Party, and 
includes all insurance and insurance-re lated services, and all banking and othe r financial services. An illustrative 
list of financial services is provided in paragraph 5 of the Annex on Financial Services to GATS. 
10 This Sub-paragraph relates to taxation measures having an effect equivalent to expropriation or 
nationalisation. 
11 Nothing in this Agreement shall be regarded as obliging a Party to extend to the other Party the 
benefit of any treatment, preference or  privilege arising from any existing or  future agreement on the avoidance 
of double taxation or from the provisions on the avoidance of double taxation in any other international 
agreement or arrangement by which the Party is bound.  WT/REG185/1 
 Page 63 
 
 
Article 1702 
 
Mandate Of The Free Trade Agreement Joint Commission  
 1. The FTA Joint Commission shall: 
(a) review the general functioning of this Agreement; 
(b) review and consider specific matters relate d to the operation and implementation of 
this Agreement; 
(c) consider any proposal to amend this Agreement; 
(d) establish, as required, permanent and ad hoc  subsidiary bodies and refer matters to 
them for advice and consider matters rai sed by all subsidiary bodies created under 
this Agreement; 
(e) seek advice from non-governmental persons or groups on any matter falling within its 
responsibilities where this would help the FTA Joint Commission make an informed 
decision; 
(f) explore measures for the further expansi on of trade and investment between the 
Parties and identify appropriate areas of commercial, industrial and technical cooperation between relevant enterprises and organisations of the Parties; and 
(g) take such other action as the Parties may mutually determine. 
2. The FTA Joint Commission shall develop pr ocedures governing the extent to which 
representatives from the private sector may participate in its deliberations. 
Article 1703 
 
Meetings Of The Free Trade Agreement Joint Commission
 
 1. The FTA Joint Commission shall meet within one y ear of the date of entry into force of this 
Agreement and then each year, or as otherwi se mutually determined by the Parties. 
2. The sessions of the FTA Joint Commission shall be  held alternately in the territory of each 
Party. 
Article 1704 
 
General Reviews
 
 
1. The Parties shall undertake a general review at ministerial level of the operation of this 
Agreement within five years of its entry into force and at least every five years thereafter. 
2. The conduct of general reviews shall normally co incide with regular meetings of the FTA 
Joint Commission. WT/REG185/1 
Page 64  
 
CHAPTER 18: CONSULTATIONS AND DISPUTE SETTLEMENT 
 
Article 1801 
 
Scope
 
 
1. This Chapter shall apply to the avoidance a nd settlement of disputes between the Parties 
concerning the interpretation, implementation or app lication of this Agreement except for Chapter 6, 
Chapter 12 and Chapter 15.  In relation to Chapter 11, this Chapter shall only apply to Article 1102. 
2. Subject to Paragraph 4, nothing in this Chapter shall affect the rights of the Parties to have 
recourse to a dispute settlement procedure availabl e under any other international agreement to which 
they are parties. 
3. If a Party decides to have recourse to a dispute settlement procedure under another 
international agreement, it shall notify the other Party in writing of its intention to bring a dispute to a 
particular forum before doing so. 
4. Once a dispute settlement procedure has been in itiated between the Parties with respect to a 
particular dispute under this Chapter or under any ot her international agreement to which the Parties 
are parties, that procedure shall be used to the ex clusion of any other procedure for that particular 
dispute. This paragraph does not a pply if substantially separate and di stinct rights or obligations under 
different international agreements are in dispute. 
5. Paragraph 4 shall not apply where the Parties expressly agree to have recourse to dispute 
settlement procedures under this Chapter and another international agreement. 
6. For the purposes of this Article, a dispute settlement procedure under the WTO Agreement 
shall be regarded as initiated by a Party’s request for a panel under Article 6 of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes . 
Article 1802 
 
Consultations  
 1. A Party shall accord adequate opportunity for cons ultations requested by the other Party with 
respect to any matter affecting the interpretation, implementation or application of this Agreement. 
2. If a request for consultations is made, the Party to  which the request is made shall reply to the 
request within seven days after the date of its recei pt and shall enter into consultations within 30 days 
after the date of receipt of the request, with a view to reaching a mutual ly satisfactory solution. 
3. The Parties shall make every effort to reach  a mutually satisfact ory resolution through 
consultations of any matter raised in accordance with this Article. 
Article 1803 
 
Good Offices, Conciliation And Mediation
 
 1. The Parties may at any time agree to good offices, conciliation or mediation.  They may begin 
at any time and be terminated at any time. 
2. Good offices, conciliation or mediation may contin ue while procedures of an arbitral tribunal 
established in accordance with th is Chapter are in progress.  WT/REG185/1 
 Page 65 
 
 
Article 1804 
 
Request To Establish An Arbitral Tribunal  
 1. If the consultations referred to in Article 1802 fa il to settle a dispute within 60 days of the 
date after receipt of the request for consultations, the Party which made the request for consultations 
may make a written request to the other Party to establish an arbitral tribunal. 
2. The request to establish an arb itral tribunal shall identify: 
(a) the specific measures at issue; 
(b) the legal basis of the complaint including th e provisions of this Agreement alleged to 
have been breached and any ot her relevant provisions; and 
(c) the factual basis for the complaint. 
Article 1805 
 
Establishment Of An Arbitral Tribunal
 
 
1. An arbitral tribunal shall consist of three memb ers. Each Party shall a ppoint a member within 
30 days after the receipt of the request under Artic le 1804. The two members appointed shall, within 
30 days after the appointment of the second of them, designate by common agreement the third member. 
2. The Parties shall, within seven days after th e date of the designation of the third member, 
approve or disapprove the appointment of that memb er, who shall, if approved, chair the tribunal. 
3. If the third member has not been designated with in 30 days after the date of the appointment 
of the second member, or if one or both of the Parties disapproves the appointment of the third member, the Parties shall consult each other in order to jointly appoint within a further period of 30 
days the chair of the arbitral tribunal. 
4. An arbitral tribunal shall be regarded as estab lished on the day on which the appointment of 
the third member of the tribunal has been approved or  agreed by the Parties in accordance with this 
Article. 
5. If a member appointed under this Article r esigns or becomes unable to act, a successor 
member shall be appointed in the same manner as  prescribed for the appointment of the member 
being replaced and the successor shall have all the powers and duties of the member being replaced. 
6. A person appointed as a member of an arbitral tribunal: 
(a) shall have expertise or experience in law, international trade, other matters covered 
by this Agreement or the settlement of disputes arising under international trade 
agreements; 
(b) shall be chosen strictly on the basis of  objectivity, reliability, sound judgement and 
independence; and 
(c) shall be independent of, and not  be affiliated with or take instructions from, either 
Party. WT/REG185/1 
Page 66  
 
7. A person appointed as chair of an arbitral tribuna l shall not be a national of, nor have his or 
her usual place of residence in the territory of, nor be employed by, either Party nor have dealt with 
the dispute in any capacity. 
Article 1806 
 
Functions Of Arbitral Tribunals
 
 1. An arbitral tribunal established under Article 1804: 
(a) shall consult the Parties as appropriate and provide adequate opportunities for the 
development of a mutually satisfactory settlement of the dispute; 
(b) shall make its award in accordance with this Agreement and applicable rules of 
international law; 
(c) shall set out, in its award, its findings of law and fact, together with its reasons; and 
(d) may, in addition to its findings of law a nd fact, include in its award options for the 
Parties to consider in implementing the award. 
2. The award of an arbitral tribunal shall be final and binding on the Parties. 
3. An arbitral tribunal shall attempt to make its decision, including its award, by consensus but 
may also make such decisions by majority vote. 
Article 1807 
 
Proceedings Of Arbitral Tribunals
 
 
1. An arbitral tribunal shall meet in closed session.  The Parties shall be present at the meetings 
only when invited by an arbitral tribunal to appear before it. 
2. The deliberations of an arbitral tribunal a nd the documents submitted to it shall be kept 
confidential.  Nothing in this Article shall preclude  a Party from disclosing to the public statements of 
its own positions or its submissions, but a Party sh all not disclose information submitted by the other 
Party to an arbitral tribunal which the la tter Party has designated as confidential. 
3. The Parties shall transmit to the tribunal writte n submissions in which they present the facts 
of their cases and their arguments and shall do so within the following time limits: 
(a) for the Party which requested the establishmen t of the arbitral tribunal, within 21 days 
after the date of the establishment of that tribunal; and 
(b) for the other Party, within 21 days after the date of the transmission of the written 
submission of the Party which requested the establishment of the arbitral tribunal. 
4. At its first substantive meeting with the Parties,  an arbitral tribunal shall ask the Party which 
requested the establishment of the tribunal to present its submission. At the same meeting, the arbitral 
tribunal shall ask the other Party to present its submission. 
5. Formal rebuttals shall be made at the second s ubstantive meeting of an arbitral tribunal. The 
Party which did not request the establishment of the tribunal shall have the right to present its 
submission first. Before the meeting, the Parti es shall submit written rebuttals to the tribunal.  WT/REG185/1 
 Page 67 
 
 
6. An arbitral tribunal may at any time put questions  to the Parties and ask them for explanations 
either in the course of a meeting or in writing. 
7. The Parties shall make available to an arb itral tribunal a written version of their oral 
statements. 
8. The submissions, rebuttals and stat ements referred to in paragraphs  4 to 6 shall be made in the 
presence of the Parties. Each Party’s written subm issions, including any comments on the draft award 
made in accordance with Article 1809 (2), written versions of oral statements and responses to 
questions put by an arbitral tribunal, shal l be made available to the other Party. 
9. An arbitral tribunal shall have no ex parte  communications concerning a dispute it is 
considering. 
10. At the request of a Party, or on its own initiativ e, an arbitral tribunal may seek information 
and technical advice from any person or body that it  deems appropriate, provided that the Parties so 
agree and subject to such terms and conditions as th e Parties may set.  This paragraph does not apply 
to information and technical advice provided by any person or body as part of the submissions 
referred to in paragraphs 4 to 6. 
11. An arbitral tribunal shall, in consultation w ith the Parties, regulate its own procedures 
governing the rights of Parties to be heard and its  own deliberations where such procedures are not 
otherwise set out in this Chapter. 
Article 1808 
 
Suspension Or Termination Of Proceedings  
 
1. Where the Parties agree, an arbitral tribunal ma y suspend its work at any time for a period not 
exceeding 12 months. If the work of an arbitral tri bunal has been suspended for more than 12 months, 
the tribunal’s authority for considering the dispute shall lapse unless the Parties agree otherwise. 
2. The Parties may agree at any time to terminat e the proceedings of an arbitral tribunal 
established under this Agreement by jointly notifying the chair of that arbitral tribunal. 
3. An arbitral tribunal may, at any stage of the proceedings prior to release of its final award, 
propose that the Parties seek to settle the dispute amicably. 
Article 1809 
 
Awards Of Arbitral Tribunals  
 
1. Unless the Parties otherwise agree,  an arbitral tribunal shall base its award on the submissions 
and arguments of the Parties and on any informa tion it has obtained in accordance with Article 1807 
(10). 
2. An arbitral tribunal shall prepare a draft award and accord adequate opportunity for the 
Parties to review this draft. The Parties may submit to the tribunal written comments on the draft 
award within 14 days after the da te of its receipt. The tribunal sh all consider any comments received 
from the Parties in finalising its award. 
3. An arbitral tribunal shall release to the Par ties its final award on a dispute within 120 days 
after the date of its establishment. If the tribunal c onsiders it cannot release its final award within 120 WT/REG185/1 
Page 68  
 
days, it shall inform the Parties in writing of the reas ons for the delay, together with an estimate of the 
period within which it will issue its award. 
4. The final award of an arbitral tribunal shall become a public document within 10 days of its 
release to the Parties. 
Article 1810 
 
Implementation
 
 1. The Parties shall promptly comply with an award of an arbitral tribunal. 
2. A Party shall notify the other Party in writing of any action it proposes to take to implement 
an award of an arbitral tribunal within 30 days after the date of the receipt of the final award by the 
Parties. 
3. If a Party considers that prompt compliance with an award of an arbitral tribunal is 
impracticable, or if a Party which requested the establishment of an ar bitral tribunal considers that an 
action proposed or subsequently taken by the ot her Party does not implement the award of the 
tribunal, the Parties shall immediat ely enter into consultations with a view to developing a mutually 
acceptable resolution, such as compensation or any alternative arrangement and agreeing on a 
reasonable period to implement any such resolution.   Compensation and any alternative arrangement 
are temporary measures, neither of which is prefe rred to full implementation of the original award. 
Article 1811 
 
Compensation And Suspension Of Benefits
 
 1. If: 
(a) the Party which requested the establishment of  an arbitral tribunal has not received 
any notice from the other Party under Article 1810 (2); or 
(b) the Parties are unable to agree on a mutua lly acceptable resolution under Article 1810 
(3) within 30 days of the commencement of  consultations under Article 1810 (3); or 
(c) the Parties have agreed on a mutually acceptable resolution under Article 1810 (3) 
and the Party which requested the establishmen t of the arbitral tribunal considers that 
the other Party has failed to observe the terms of such agreement, 
the Party which requested the establishment of an ar bitral tribunal may at any time thereafter provide 
written notice to the other Party that it intends to suspend the application of benefits of equivalent 
effect to the non-conformity found by the tribunal.  The notice shall specify the level of benefits that 
the Party proposes to suspend.  The Party which re quested the establishment of an arbitral tribunal 
may begin suspending benefits 30 days after the da te on which it provides notice to the other Party. 
 
2. In considering what benefits to suspend under this Article: 
(a) the Party which requested the establishment of an arbitral tribunal shall first seek to 
suspend the application of benefits in the same sector or sectors as affected by the 
matter that the tribunal has found to be  inconsistent with this Agreement;  WT/REG185/1 
 Page 69 
 
 
(b) the Party which requested the establishment of  an arbitral tribunal may suspend the 
application of benefits in other sectors if it considers that it is not practicable or 
effective to suspend the application of benefits in the same sector; and 
(c) the Party which requested the establishment of the arbitral tribunal shall aim to ensure 
that the level of suspension of benefits is  of equivalent effect to the non-conformity 
found by the tribunal. 
 Any suspension of benefits under this Article shall be temporary and shall only be applied 
until such time as the Party that must implement an  arbitral tribunal’s award has done so, or until a 
mutually satisfactory solution is reached.  
3. If the Party complained against considers that: 
(a) the level of benefits that the other Party has proposed to suspend under paragraph 2 is 
excessive; or 
(b) it has eliminated the non-conformity found by the tribunal 
it may, within 30 days after the other Party pr ovides notice under Paragraph 1, request that the 
tribunal be reconvened to consider this matter.  The Party complained  against shall deliver its request 
in writing to the other Party.  The tribunal shall r econvene within 30 days afte r delivery of the request 
to the other Party and shall present its determination to  the Parties within 90 days after it reconvenes.  
If the tribunal determines that the level of benefits  proposed to be or actua lly suspended is excessive, 
it shall determine the level of benefits it considers to  be of equivalent effect to the non-conformity 
found by the tribunal, adjusted to reflect any loss sustained by a Party as a result of excessive 
suspension. 
 4. The compliance tribunal’s award shall be final and binding on the Parties. 
Article 1812 
 
Expenses
 
  Each Party shall bear the costs of its appoint ed member and its own expenses. The costs of 
the chair of an arbitral tribunal and other expenses associated with the conduct of its proceedings shall 
be borne in equal parts by the Parties.   
 WT/REG185/1 
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CHAPTER 19: FINAL PROVISIONS 
 
Article 1901 
 
Headings
 
 
 The headings of the Chapters and Articles of  this Agreement are inserted for convenience of 
reference only and shall not affect th e interpretation of this Agreement. 
 
Article 1902 
 
Annexes And Footnotes  
  The Annexes and Footnotes to this Agreement sha ll form an integral part of this Agreement. 
 
Article 1903 
 
Amendments
 
  This Agreement may be amended by agreement in writing by the Parties, and such amendments shall enter into force on such da te or dates as may be agreed between them. 
 
Article 1904 
 
Application
 
 
 Each Party is fully responsible for the observa nce of all provisions in this Agreement and 
shall take such reasonable measures as may be avai lable to it to ensure their observance by regional 
and local governments and authorities.  
Article 1905 
 
Association With The Agreement
 
  This Agreement is open to accession or associa tion, on terms to be agreed between the 
Parties, by any member of the WTO, or by any other State or separate customs territory.  
Article 1906 
 
Consultations On Inconsiste ncies With Other Agreements
 
  If either Party considers there is any incons istency between this Agreement and any other 
agreement to which both Parties are parties, the Part ies shall consult each other with a view to finding 
a mutually satisfactory solution. 
 
Article 1907 
 
Preferences Under Other Agreements
 
 
1. Except for Article 908 (2), Article 917 (3) and Ar ticle 1605, nothing in this Agreement shall 
be regarded as obliging a Party to extend to the ot her Party the benefit of any treatment, preference or 
privilege arising from any existing or any futu re customs union, free trade area, free trade 
arrangement, common market, monetary union or si milar international agreement or other similar 
forms of bilateral or regional coopera tion to which either of the Parti es is or may become party; or as  WT/REG185/1 
 Page 71 
 
 
preventing the adoption of an agreement designed to lead to the formation or extension of such a 
union, area or arrangement or market. 
2. Where, by virtue of the Annex on Article II Exemptions to GATS, a Party is exempt from the 
obligations of Paragraph 1 of Article II of GATS in  relation to an agreement or arrangement with a 
non-Party, nothing in this Agreemen t shall be regarded as obliging that Party to extend to the other 
Party the benefit of any treatment, preference or privilege arising from such agreement or 
arrangement.  This Paragraph applies whether or not  the treatment, preference or privilege under that 
agreement or arrangement would itself be subject to  the obligations of Paragraph 1 of Article II of 
GATS except for the Annex on Article II Exemptions to GATS. 
Article 1908 
 
Termination Of 1979 Trade Agreement  
  The Trade Agreement Between the Government of the Kingdom of Thailand and the 
Government of Australia , done at Bangkok on 5 October 1979, sha ll terminate on the day of entry into 
force of this Agreement. 
 
Article 1909 
 
Financial Provisions
 
 
 Any cooperative activities envisaged or undertaken  under this Agreement shall be subject to 
the availability of resources and to the laws, regu lations and policies of the Parties. Costs of 
cooperative activities shall be borne in such manner as  may be mutually determined from time to time 
between the Parties.  
Article 1910 
 
Entry Into Force, Duration And Termination
 
 1. This Agreement shall enter into force 30 days after the date on which the Parties have notified 
each other in writing that their respective internal  procedures for the entry into force of this 
Agreement have been fulfilled. 
2. This Agreement shall remain in  force until one Party gives written notice of its intention to 
terminate it, in which case this Agreement shall termin ate twelve months after the date of the notice of 
termination. 
 
 IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective 
Governments, have si gned this Agreement. 
  DONE in duplicate at Canberra, this 5th day of  July, two-thousand and four, in the English 
language.  
 For the Kingdom of Thailand  For Australia 
  Mr. Watana  Muangsook Mr. Mark Vaile  Minister of Commerce Minister for Trade 
 
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