WORLD TRADE  
ORGANIZATION  WT/REG198/1 
9 May 2005 
 (05-1884) 
Committee on Regional Trade Agreements Original:   English/ 
 Spanish 
 
 
 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN JAPAN AND MEXICO 
  
 The following communication, dated 31 March 2005, is being circulated at the request of the Delegations of Japan and Mexico. 
  
_______________ 
 
AGREEMENT BETWEEN JAPAN AND THE UNITED MEXICAN STATES 
FOR THE STRENGTHENING OF THE ECONOMIC PARTNERSHIP
* 
 
TABLE OF CONTENTS  
 
 Page 
 
PREAMBLE ....................................................................................................................... .....................9  
CHAPTER 1:  OBJECTIVES......................................................................................................... .........9  
Article 1:  Objectives ......................................................................................................... ......................9  
CHAPTER 2:  GENERAL DEFINITIONS...........................................................................................10  
Article 2:  General Definitions................................................................................................ ...............10  
CHAPTER 3:  TRADE IN GOODS..................................................................................................... .12 
SECTION 1 - GENERAL RULES ................................................................................................................12  
Article 3:  National Treatment ................................................................................................. ..............12  
Article 4:  Classification of Goods............................................................................................ .............12  
Article 5:  Elimination of Customs Duties...................................................................................... .......12  
Article 6:  Export Duties...................................................................................................... ..................13  
Article 7:  Import and Export Restrictions..................................................................................... ........13  
Article 8:  Protection of Geogra phical Indications for Spirits ...............................................................13  
Article 9:  Sub-Committee on Trade in Goods .................................................................................... ..14 
Article 10:  Uniform Regulations............................................................................................... ............14  
Article 11:  Definition........................................................................................................ ....................15  
SECTION 2 - SANITARY AND PHYTOSANITARY MEASURES ...................................................................15  
                                                      
* The associated Annexes (page 7) have been submitte d to the Secretariat for consultation by interested 
Members (office 1174). WT/REG198/1 
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 Article 12:  Reaffirmation of Rights and Obligations........................................................................... .15
 
Article 13:  Enquiry Points .................................................................................................... ................15  
Article 14:  Sub-Committee on SPS Measures ..................................................................................... .15 
Article 15:  Non-Appli cation of Chapter 15 ..................................................................................... .....16  
SECTION 3 - TECHNICAL REGULATIONS , STANDARDS AND CONFORMITY ASSESSMENT 
PROCEDURES ............................................................................................................................... ...........16  
Article 16:  Reaffirmation of Rights and Obligations........................................................................... .16 
Article 17:  Cooperation in the Field of Tec hnical Regulations, Standards and Conformity 
Assessment Procedures.......................................................................................................... ................16  
Article 18:  Enquiry Points .................................................................................................... ................17  
Article 19:  Sub-Committee on Technical Regul ations, Standards and Conformity Assessment 
Procedures..................................................................................................................... .........................17  
Article 20:  Non-Appli cation of Chapter 15 ..................................................................................... .....18  
Article 21:  Relation to Section 2............................................................................................. ..............18  
CHAPTER 4:  RULES OF ORIGIN.................................................................................................... ..18 
Article 22:  Originating Goods ................................................................................................. .............18  
Article 23:  Regional Value Content............................................................................................ ..........19  
Article 24:  Value of Materials ................................................................................................ ..............19  
Article 25:  De Minimis ..........................................................................................................................20  
Article 26:  Intermediate Materials ............................................................................................ ............21  
Article 27:  Accumulation...................................................................................................... ................21  
Article 28:  Fungible Goods and Materials...................................................................................... ......21  
Article 29:  Sets, Kits  or Composite Goods..................................................................................... ......23  
Article 30:  Indirect Materials................................................................................................ ................23  
Article 31:  Accessories, Spare Parts and Tools ................................................................................ ....23  
Article 32:  Packaging Materials and Containers for Retail Sale...........................................................23  
Article 33:  Packing Materials and Containers for Shipment ................................................................24  
Article 34:  Non-Qualifying Operations ......................................................................................... .......24  
Article 35:  Transshipment..................................................................................................... ................25  
Article 36:  Applicati on and Interpretation .................................................................................... ........25  
Article 37:  Sub-Committee, C onsultation and Modifications...............................................................25  
Article 38:  Definitions ....................................................................................................... ...................26  
CHAPTER 5:  CERTIFICATE OF OR IGIN AND CUSTOMS PROCEDURES ................................29  
SECTION 1 - CERTIFICATION OF ORIGIN ................................................................................................29  
Article 39:  Certificate of Origin............................................................................................. ...............29  
Article 40:  Obligations  Regarding Importations................................................................................ ...31 
Article 41:  Obligations Regarding Exportations................................................................................ ...31  WT/REG198/1 
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 Article 42:  Exceptions........................................................................................................ ...................32  
SECTION 2 - ADMINISTRATION AND ENFORCEMENT .............................................................................32  
Article 43:  Records ........................................................................................................... ....................32  
Article 44:  Origin Verifications .............................................................................................. ..............33  
Article 45:  Confidentiality ................................................................................................... .................37  
Article 46:  Penalties......................................................................................................... .....................37  
Article 47:  Review and Appeal................................................................................................. ............37  
Article 48:  Goods in Transit or Storage....................................................................................... .........38  
Article 49:  Definitions ....................................................................................................... ...................38  
SECTION 3 - CUSTOMS COOPERATION FOR TRADE FACILITATION ........................................................39  
Article 50:  Customs Coopera tion for Trade Facilitation.......................................................................3 9 
CHAPTER 6:  BILATERAL SAFEGUARD MEASURES..................................................................39  
Article 51:  General Provision ................................................................................................. ..............39  
Article 52:  Consistency....................................................................................................... ..................40  
Article 53:  Conditions........................................................................................................ ...................40  
Article 54:  Provisional Bila teral Safeguard Measures.......................................................................... 41 
Article 55:  Bilateral Safe guard Measures Proceedings.........................................................................4 2 
Article 56:  Definitions ....................................................................................................... ...................43  
CHAPTER 7:  INVESTMENT......................................................................................................... .....44  
SECTION 1 - INVESTMENT ......................................................................................................................44  
Article 57:  Scope and Coverage................................................................................................ ............44  
Article 58:  National Treatment ................................................................................................ .............44  
Article 59:  Most-Favored-Nation Treatment ..................................................................................... ...45 
Article 60:  General Treatment ................................................................................................. .............45  
Article 61:  Expropriation and Compensation .................................................................................... ...45 
Article 62:  Protection from Strife ............................................................................................ .............46  
Article 63:  Transfers ......................................................................................................... ....................46  
Article 64:  Senior Management  and Boards of Directors.....................................................................47  
Article 65:  Performance Requirements.......................................................................................... .......47  
Article 66:  Reservations and Exceptions ....................................................................................... .......49  
Article 67:  Notification ...................................................................................................... ...................50  
Article 68:  Special Formalities and Information Requirements ...........................................................50  
Article 69:  Relation to Other Chapters ........................................................................................ .........51  
Article 70:  Denial of Benefits ................................................................................................ ...............51  
Article 71:  Investment Support................................................................................................ .............51  
Article 72:  Temporary Safeguard Measures ...................................................................................... ...52 WT/REG198/1 
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 Article 73:  Intellectual Property Rights ...................................................................................... ..........52
 
Article 74:  Environmental Measures ............................................................................................ ........52  
SECTION 2 - SETTLEMENT OF INVESTMENT DISPUTES BETWEEN A PARTY AND AN INVESTOR 
OF THE OTHER PARTY ...........................................................................................................................53  
Article 75:  Purpose ........................................................................................................... ....................53  
Article 76:  Claim by an Investor.............................................................................................. .............53  
Article 77:  Consulta tion and Negotiation ...................................................................................... .......53  
Article 78:  Written Request ................................................................................................... ...............53  
Article 79:  Submission of a Claim to Arbitration .............................................................................. ...54 
Article 80:  Consent to Arbitration ............................................................................................ ............54  
Article 81:  Conditions and Limitati ons on Consent of Each Party.......................................................54  
Article 82:  Constitution of a Tribunal........................................................................................ ...........56  
Article 83:  Consolidation of Multiple Claims.................................................................................. .....56  
Article 84:  G overning Law ..................................................................................................... ..............57  
Article 85:  Notice............................................................................................................ ......................57  
Article 86:  Participation by a Party.......................................................................................... .............58  
Article 87:  Documents ......................................................................................................... .................58  
Article 88:  Place of Arbitration.............................................................................................. ...............58  
Article 89:  Interpre tation of Annexes ......................................................................................... ..........58  
Article 90:  Expert Reports .................................................................................................... ................58  
Article 91:  Interim M easures of Protection.................................................................................... .......59  
Article 92:  Final Award ....................................................................................................... .................59  
Article 93:  Finality and Enforcement of an Award.............................................................................. .59 
Article 94:  General........................................................................................................... .....................60  
Article 95:  Exceptions from Di spute Settlement Procedure .................................................................61  
SECTION 3 - DEFINITIONS .......................................................................................................................61  
Article 96:  Definitions ....................................................................................................... ...................61  
CHAPTER 8:  CROSS-BORDER TRADE IN SERVICES..................................................................63  
Article 97:  Scope and Coverage................................................................................................ ............63  
Article 98:  National Treatment ................................................................................................ .............64  
Article 99:  Most-Favored-Nation Treatment ..................................................................................... ...65 
Article 100:  Local Presence ................................................................................................... ...............65  
Article 101:  Reservations..................................................................................................... .................65  
Article 102:  Notification ..................................................................................................... ..................66  
Article 103:  Sub-Committee on Cross-Border Trade in Services.........................................................66  
Article 104:  Licensing and Certification...................................................................................... .........66   WT/REG198/1 
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 Article 105:  Denial of Benefits ............................................................................................... ..............67  
Article 106:  Definitions ...................................................................................................... ..................67  
CHAPTER 9:  FINANCIAL SERVICES..............................................................................................68  
Article 107:  Scope  and Coverage............................................................................................... ...........68  
Article 108:  Commitments under International Agreements ................................................................68  
Article 109:  Non-Application of Chapter 15 .................................................................................... ....68  
Article 110:  Exceptions....................................................................................................... ..................69  
Article 111:  Relation to Other Chapters ....................................................................................... ........69  
Article 112:  Definitions ...................................................................................................... ..................69  
CHAPTER 10:  ENTRY AND TEMPORARY STAY OF NATIONALS FOR BUSINESS 
PURPOSES....................................................................................................................... .....................70  
Article 113:  General Principles............................................................................................... ..............70  
Article 114:  Scope  and Coverage............................................................................................... ...........70  
Article 115:  Grant of Entry and Temporary Stay................................................................................ ..71 
Article 116:  Provision of Information......................................................................................... ..........71  
Article 117:  Sub-Committee on Entry and Temporary Stay.................................................................71  
Article 118:  Dispute Settlement............................................................................................... .............72  
CHAPTER 11:  GOVERNMENT PROCUREMENT...........................................................................72  
Article 119:  Scope  and Coverage............................................................................................... ...........72  
Article 120:  National Treatment ............................................................................................... ............73  
Article 121:  Rules of Origin .................................................................................................. ...............73  
Article 122:  Procurement Pro cedures and Other Provisions.................................................................74  
Article 123:  Offsets.......................................................................................................... .....................74  
Article 124:  Provision of Information......................................................................................... ..........74  
Article 125:  Challenge Procedures ............................................................................................. ..........75  
Article 126:  Exceptions....................................................................................................... ..................77  
Article 127:  Sub-Committee on Government Procurement..................................................................77  
Article 128:  Rectifications or Modifications .................................................................................. ......78  
Article 129:  Privatization of Entities ........................................................................................ ............78  
Article 130:  Miscellaneous Provisions ......................................................................................... ........78  
CHAPTER 12:  COMPETITION ....................................................................................................... ...79 
Article 131:  Anticompetitive Activities....................................................................................... .........79  
Article 132:  Cooperation on Contro lling Anticompetitive Activities...................................................79  
Article 133:  Non-Discrimination ............................................................................................... ...........79  
Article 134:  Procedural Fairness.............................................................................................. .............79  
Article 135:  Non-Application of  Article 164 and Chapter 15...............................................................79  WT/REG198/1 
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 CHAPTER 13:  IMPROVEMENT OF THE BUSINESS ENVIRONMENT .......................................80
 
Article 136:  Consultations for the Improvement of the Business Environment ...................................80  
Article 137:  Committee for the Improvement of the Business Environment .......................................80  
Article 138:  Non-Application of Chapter 15 .................................................................................... ....80  
CHAPTER 14:  BILATERAL COOPERATION..................................................................................81  
Article 139:  Cooperation in the Field of  Trade and Investment Promotion..........................................81  
Article 140:  Cooperation in the Fi eld of Supporting Industries............................................................81  
Article 141:  Cooperation in the Field of Small and Medium Enterprises.............................................82  
Article 142:  Cooperation in the Fi eld of Science and Technology.......................................................82  
Article 143:  Cooperation in the Field of Tec hnical and Vocational Education and Training...............83  
Article 144:  Cooperation in the Fi eld of Intellectual Property .............................................................83  
Article 145:  Cooperation in the Field of Agriculture.......................................................................... ..84 
Article 146:  Cooperation in the Field of Tourism.............................................................................. ...84 
Article 147:  Cooperation in the Field of Environment .........................................................................8 5 
Article 148:  Non-Application of Chapter 15 .................................................................................... ....86  
Article 149:  Relation to Other Agreements ..................................................................................... .....86  
CHAPTER 15:  DISPUTE SETTLEMENT ..........................................................................................86  
Article 150:  Scope  and Coverage............................................................................................... ...........86  
Article 151:  Choice of Dispute Settlement Procedure ..........................................................................8 6 
Article 152:  Consultations .................................................................................................... ................87  
Article 153:  Establishmen t of Arbitral Tribunals.............................................................................. ....87  
Article 154:  Award of Arbitral Tribunals ...................................................................................... .......88  
Article 155:  Termination of Proceedings of the Arbitral Tribunal .......................................................89  
Article 156:  Implementation of Award.......................................................................................... .......89  
Article 157:  Modification of Time Periods..................................................................................... ......90  
Article 158:  Expenses ......................................................................................................... ..................90  
Article 159:  Rules of Procedure............................................................................................... .............90  
CHAPTER 16:  IMPLEMENTATION AND OPERATION OF THE AGREEMENT........................91  
Article 160:  Transparency..................................................................................................... ................91  
Article 161:  Public Comment Procedures........................................................................................ .....91  
Article 162:  Administrative Proceedings....................................................................................... .......91  
Article 163:  Review and Appeal................................................................................................ ...........92  
Article 164:  Confidential Information ......................................................................................... .........92  
Article 165:  Joint Committee.................................................................................................. ..............92  
Article 166:  Communications ................................................................................................... ............94  
Article 167:  Relation to Other Agreements ..................................................................................... .....94   WT/REG198/1 
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 CHAPTER 17:  EXCEPTIONS........................................................................................................ .....94  
Article 168:  General Exceptions............................................................................................... ............94  
Article 169:  National Security ................................................................................................ ..............94  
Article 170:  Taxation ......................................................................................................... ...................95  
Article 171:  Payments and Transfers and Restric tions to Safeguard the Balance of Payments ...........96  
CHAPTER 18:  FINAL PROVISIONS.................................................................................................9 7 
Article 172:  Table of Contents and Headings................................................................................... ....97  
Article 173:  Annexes and Notes ................................................................................................ ...........97  
Article 174:  Amendment........................................................................................................ ...............97  
Article 175:  Entry into Force ................................................................................................. ...............97  
Article 176:  Termination...................................................................................................... .................98 
Article 177:  Authentic Texts.................................................................................................. ...............98 
 Annex 1 referred to in Chapter 3 Schedules in relation to Article 5 
Annex 2 referred to in Chapter 3 Measure s of Mexico in relation to Article 7 
Annex 3 referred to in Chapter 3 Ge ographical Indications for Spirits 
Annex 4 referred to in Chapter 4 Specific Rules of Origin Annex 5 referred to in Chapter 5 Origin Verifications Annex 6 referred to in Chapters 7 a nd 8 Reservations for Existing Measures 
Annex 7 referred to in Chapters 7 a nd 8 Reservations for Future Measures 
Annex 8 referred to in Chapters 7 Activities Reserved to the State 
Annex 9 referred to in Chapter 7 Exemp tions from Most-Favored-Nation Treatment 
Annex 10 referred to in Chapter 10 Categories of  Entry and Temporary Stay of Nationals for 
Business Purposes 
Annex 11 referred to in Chapter 11 Entities Annex 12 referred to in Chapter 11 Goods 
Annex 13 referred to in Chapter 11 Services 
Annex 14 referred to in Chap ter 11 Construction Services 
Annex 15 referred to in Chapter 11 Thresholds Annex 16 referred to in Chapte r 11 General Notes of Mexico 
Annex 17 referred to in Chapter 11 Publications Annex 18 referred to in Chapter 11 Procurement Procedures  
  WT/REG198/1 
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PREAMBLE  
Japan and the United Mexican States , 
Conscious of their longstanding friendship and strong economic and political ties that have 
developed through growing trade and investment a nd mutually beneficial cooperation between the 
Parties; 
Realizing that a dynamic and rapidly changing global environment brought about by 
globalization and closer integration among econom ies in the world presents many new economic 
challenges and opportunities to the Parties; 
Recognizing that the economies of the Parties are e ndowed with conditions to complement 
each other and that this complementarity shoul d contribute to further promoting the economic 
development in the Parties, by making use of th eir respective economic strengths through bilateral 
trade and investment activities; 
Recognizing that creating a clearly established and secured trade and investment framework 
through mutually advantageous rules to govern trade and investment between the Parties would 
enhance the competitiveness of the economies of the Pa rties, make their markets more efficient and 
vibrant and ensure predictable commercial environmen t for further expansion of trade and investment 
between them; 
Noting that such a framework would promote the economic relations between the Parties; 
Recalling Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V 
of the General Agreement on Trade in Services in  Annex 1A and Annex 1B, respectively, to the 
Marrakesh Agreement Establishing the World Trad e Organization, done at Marrakesh, April 15, 
1994; 
Realizing that enhancing economic ties between the Parties would contribute to increasing 
trade and investment flows across the Pacific; 
Convinced that this Agreement would open a new era for the relationship between the Parties;  
and 
Determined to establish a legal framework for st rengthening the economic partnership 
between the Parties; 
Have agreed  as follows: 
CHAPTER 1:  OBJECTIVES 
Article 1 
Objectives  
The objectives of this Agreement are to: (a) liberalize and facilitate trade in goods and services between the Parties; WT/REG198/1 
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 (b) increase investment opportunities and strengthen protection for investments and 
investment activities in the Parties; 
(c) enhance opportunities for suppliers to par ticipate in government procurement in the 
Parties; 
(d) promote cooperation and coordination for the effective enforcement of competition 
laws in each Party;   
(e) create effective procedures for the implementation and operation of this Agreement 
and for the resolution of disputes;  and  
(f) establish a framework for further bilatera l cooperation and improvement of business 
environment. 
CHAPTER 2:  GENERAL DEFINITIONS 
Article 2 
General Definitions
 
1. For the purposes of this Agreement, unless otherwise specified: 
(a) the term “Area” means: 
with respect to the United Mexican States (hereinafter referred to as “Mexico”): 
(i) the States of the Federation and the Federal District; 
(ii) the islands, including the reefs and keys, in adjacent seas; 
(iii) the islands of Guadalupe and Revillagi gedo situated in the Pacific Ocean; 
(iv) the continental shelf and the submarine shelf of such islands, keys and reefs; 
(v) the waters of the territorial seas, in acco rdance with international law, and its 
interior maritime waters; 
(vi) the space located above the nationa l territory, in accordance with 
international law;  and  
(vii) any areas beyond the territorial seas of Mexico within which, in accordance 
with international law, including th e United Nations Convention on the Law 
of the Sea, as may be amended, and its domestic law, Mexico may exercise 
rights with respect to the seabed and subsoil and their natural resources;  and 
with respect to Japan: 
(viii) the territory of Japan which means the land areas, internal waters, and 
territorial seas and the airspace above such areas, waters and seas, under the 
sovereignty of Japan in accordance with international law;  and  WT/REG198/1 
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 (ix) any areas beyond the territorial seas of Japan within which, in accordance 
with international law, including th e United Nations Convention on the Law 
of the Sea, as may be amended, and its domestic law, Japan may exercise rights with respect to the seabed and subsoil and their natural resources. 
Nothing in this subparagraph shall affect the rights and obligations of the Parties under the 
United Nations Convention on the Law of the Sea, as may be amended; 
(b) the term “days” means calendar days, including weekends and holidays; 
(c) the term “enterprise” means any entity constitu ted or organized under applicable law, 
whether or not for profit, and whether privately-owned or governmentally-owned, 
including any corporation, trust, partnership,  joint venture, or other association or sole 
proprietorship; 
(d) the term “enterprise of a Party” means an  enterprise constituted or organized under 
the law of a Party; 
(e) the term “existing” means in effect on the date  of entry into force of this Agreement; 
(f) the term “GATS” means the General Agreem ent on Trade in Services in Annex 1B to 
the Marrakesh Agreement Establishing th e World Trade Organization, done at 
Marrakesh, April 15, 1994, as may be amended; 
(g) the term “GATT 1994” means the General Agreement on Tariffs and Trade 1994 in 
Annex 1A to the Marrakesh Agreement Es tablishing the World Trade Organization, 
done at Marrakesh, April 15, 1994, as may be amended.  For the purposes of this 
Agreement, references to Articles in th e GATT 1994 include the interpretative notes; 
(h) the term “goods of a Party” means domestic  products as these are understood in the 
GATT 1994, and includes originating goods of that Party; 
(i) the term “Harmonized System (HS)” means the Harmonized Commodity Description 
and Coding System set out in the Annex to the International Convention on the Harmonized Commodity Description and Coding System, as may be amended, and 
adopted and implemented by the Parties in their respective domestic laws;   
(j) the term “Joint Committee” means the Jo int Committee established under Article 
165; 
(k) the term “measure” means any measure by a Party, whether in the form of a law, 
regulation, rule, procedure, decision, administrative action or any other form; 
(l) the term “national” means a natural pers on possessing the nationality of a Party under 
its domestic laws; 
(m) the term “originating goods” means goods qualifying as originating under the 
provisions of Chapter 4; 
(n) the term “originating materials” means ma terials qualifying as originating under the 
provisions of Chapter 4; 
(o) the term “person” means a natural person or enterprise; WT/REG198/1 
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 (p) the term “person of a Party” means a national or an enterprise of a Party; 
(q) the term “state enterprise” means an enterprise owned or controlled through 
ownership interests by a Party;  and 
(r) the term “WTO Agreement” means the Ma rrakesh Agreement Establishing the World 
Trade Organization, done at Marrakesh, April 15, 1994, as may be amended. 
2. For the purposes of this Agreement, unless otherwise specified: 
(a) in the case of Mexico, a reference to a stat e includes local governments of that state;  
and 
(b) in the case of Japan, a reference to a lo cal government means a prefecture or any 
other local authority. 
CHAPTER 3:  TRADE IN GOODS 
Section 1 - General Rules
 
Article 3 
National Treatment  
1. Each Party shall accord national treatment to th e goods of the other Party in accordance with 
Article III of the GATT 1994 and to this end Article  III of the GATT 1994 is incorporated into and 
made part of this Agreement. 
2. The provisions of paragraph 1 above regarding na tional treatment shall mean, with respect to 
a local government in the case of Japan, and with resp ect to a state in the case of Mexico, treatment no 
less favorable than the most favorable treatment accord ed by that local government or state to any like 
goods or, directly competitive or substitutable goods, as the case may be, of the Party of which it 
forms a part. 
Article 4 
Classification Of Goods  
The classification of goods in trade between th e Parties shall be in conformity with the 
Harmonized System. 
Article 5 
Elimination Of Customs Duties  
1. Except as otherwise provided for in this Agreem ent, each Party shall eliminate or reduce its 
Customs Duties on originating goods designated for such purposes in its Schedule in Annex 1, in 
accordance with the terms and conditions set out therein.  
2. Except as otherwise provided for in this Agreem ent, neither Party shall increase any Customs 
Duty on originating goods from the level pr ovided for in its Schedule in Annex 1.  WT/REG198/1 
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 Note:  The term “level” means the level of Cu stoms Duty that shall be implemented by each 
Party in accordance with its Schedule and does not me an the Base Rate specified in such Schedule. 
3. (a) On the request of either Party, the Parties shall consult to consider: 
(i) issues such as improving market access conditions on originating goods 
designated for consultation in the Sche dule in Annex 1, in accordance with 
the terms and conditions set out in such Schedule;  or 
(ii) further steps in the process of liberali zation of trade between the Parties in 
respect of goods after 4 years of the date of entry into force of this Agreement. 
(b) Subparagraph (a)(ii) above shall not apply to the originating goods referred to in 
subparagraph (a)(i) above while the consulta tion on the originating goods is held 
under the terms and conditions referre d to in subparagraph (a)(i) above. 
4. The Parties shall consult to consider further steps in the process of liberalization of trade 
between the Parties in respect of originating goods set  out in the Schedule in Annex 1, in light of the 
result of the multilateral trade negotiations under the World Trade Organization (WTO). 
5. Any amendment to the Schedules as a result of the consultations referred to in paragraph 3 or 
4 above shall be approved by both Parties in acco rdance with their respectiv e legal procedures, and 
shall supersede any corresponding concession pr ovided for in their respective Schedules. 
Article 6 
Export Duties
 
Neither Party shall adopt or maintain any duti es on goods exported from a Party into the other 
Party. 
Article 7 
Import And Export Restrictions  
1. Except as otherwise provided for in this Agreemen t, each Party shall not institute or maintain 
any prohibition or restriction other than Customs Duties on the importation of any good of the other 
Party or on the exportation or sale for export of any good destined to the other Party, which is 
inconsistent with its obligations  under Article XI of the GATT 1994 and its relevant provisions under 
the WTO Agreement. 
2. The measures specified in Annex 2 may be maintained, provided that such measures are 
consistent with the rights and obligations of  the Party taking such measures under the WTO 
Agreement. 
Article 8 
Protection Of Geographical Indications For Spirits  
1. The Parties agree that indications for spirits listed in Annex 3 are geographical indications 
referred to in paragraph 1 of Article 22 of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights in Annex 1C to the WTO Agreemen t, as may be amended, and shall abide by the WT/REG198/1 
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 obligations under the relevant provisions of the said Agreement with respect to the protection of 
geographical indications, and for this purpose, they shall take appropriate measures to prohibit the use 
of any geographical indications listed in Annex 3 fo r spirits not originating in the place indicated by 
the respective geographical indication. 
2. Modifications to Annex 3 proposed by both Pa rties may be adopted by the Joint Committee 
pursuant to subparagraph 2(e)(i) of Article 165.  Th e adopted modifications shall be confirmed by an 
exchange of diplomatic notes and shall enter into force on the date specified in the said notes.  The 
modified part of Annex 3 shall supersede th e corresponding part provided for in Annex 3. 
Article 9 
Sub-Committee On Trade In Goods
 
1. For the purposes of the effective implementation and operation of this Section, a Sub-
Committee on Trade in Goods (hereinafter referred to in this Article as “the Sub-Committee”) shall be 
established pursuant to Article 165. 
2. The Sub-Committee shall meet at such venue a nd times as may be agreed by the Parties. 
3. The functions of the Sub-Committee shall be: 
(a) reviewing the implementation and  operation of this Section; 
(b) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(c) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
4. (a) For the purposes of the effective implemen tation and operation of this Section, the 
Sub-Committee shall establish a Special  Sub-Committee on Steel Products.  If 
necessary, the Sub-Committee may establish any other Special Sub-Committees.   
(b) The Special Sub-Committees shall be held at such venue and times as may be agreed 
by the Parties.  
(c) The functions of the Special Sub-Committees shall be: 
(i) analyzing relevant matters on the rele vant products and its sector, including 
trade in such products;  and 
(ii) reporting the findings of the Special Sub-Committees, through the Sub-
Committee, to the Joint Committee.  
Article 10 
Uniform Regulations  
Upon the date of entry into force of this Agreement, the Joint Committee shall adopt the 
Uniform Regulations that provide detailed regulations pursuant to which the customs authorities, the 
competent governmental authorities defined in Article  49 and the relevant authorities of the Parties 
shall implement their functions under this Secti on, Chapter 4 and Chapter 5, except Section 3.  WT/REG198/1 
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 Article 11 
Definition  
For the purposes of this Section, the term “C ustoms Duty” means any customs or import duty 
and a charge of any kind, imposed in connection w ith the importation of a good, but does not include 
any: 
(a) charge equivalent to an internal tax im posed consistently with the provisions of 
paragraph 2 of Article III of the GATT 1994, in respect of the like goods or, directly 
competitive or substitutable goods of the Part y or in respect of goods from which the 
imported goods have been manufactured or produced in whole or in part; 
(b) anti-dumping or countervailing duty applied pursuant to a Party’s domestic law and 
applied consistently with the provisions  of Article VI of the GATT 1994, the 
Agreement on Implementation of Article VI of the General Agreement on Tariffs and 
Trade 1994, as may be amended, and the Ag reement on Subsidies and Countervailing 
Measures in Annex 1A to the WTO Agreement, as may be amended;  or 
(c) fees or other charges commensurate with the cost of services rendered. 
Section 2 - Sanitary And Phytosanitary Measures  
Article 12 
Reaffirmation Of Rights And Obligations  
The Parties reaffirm their rights and obliga tions relating to sanitary and phytosanitary 
(hereinafter referred to in this  Chapter as “SPS”) meas ures under the Agreement on the Application of 
Sanitary and Phytosanitary Measures in Annex 1A  to the WTO Agreement, as may be amended. 
Article 13 
Enquiry Points  
Each Party shall designate an enquiry point whic h is able to answer all reasonable enquiries 
from the other Party regarding SPS measures referred to  in Article 12 and, if appropriate, to provide 
their relevant information.  
Article 14 
Sub-Committee On SPS Measures  
1. For the purposes of the effective implementation and operation of this Section, a Sub-
Committee on SPS Measures (hereinafter referred to in  this Article as “the Sub-Committee”) shall be 
established pursuant to Article 165. 
2. The Sub-Committee shall meet at such venue a nd times as may be agreed by the Parties. 
3. The functions of the Sub-Committee shall be: 
(a) exchange of information on such matters as occurrences of SPS incidents in the 
Parties and non-Parties, and change or in troduction of SPS-related regulations and WT/REG198/1 
Page 16  
 
 standards of the Parties, which may, dir ectly or indirectly, affect trade in goods 
between the Parties;   
(b) notification to either Party of information on potential SPS risks recognized by the 
other Party; 
(c) science-based consultation to identify and address specific issues that may arise from 
the application of SPS measures with the obj ective of obtaining mutually acceptable 
solutions; 
(d) discussing technical cooperation in relation to SPS measures; 
(e) consulting cooperative efforts between the Par ties in international foraums in relation 
to SPS measures;  and 
(f) reporting the findings of the Sub-Committee to the Joint Committee;  and. 
(g) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
4. The Sub-Committee may, if necessary, establis h ad hoc technical advisory groups as its 
subsidiary bodies.  The groups shall provide th e Sub-Committee with technical information and 
advice at the request of the Sub-Committee. 
Article 15 
Non-Application Of Chapter 15
 
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Section. 
Section 3 - Technical Regulations, Standards  
And Conformity Assessment Procedures  
Article 16 
Reaffirmation Of Rights And Obligations  
The Parties reaffirm their rights and obligations  relating to technical regulations, standards 
and conformity assessment procedures under the Agre ement on Technical Barriers to Trade in Annex 
1A to the WTO Agreement, as may be amended.   
Article 17 
Cooperation In The Field Of T echnical Regulations, Standards  
And Conformity Assessment Procedures  
1. The Parties shall develop cooperation between the Governments of the Parties in the field of 
technical regulations, standards and conformity assessme nt procedures (hereinafter referred to in this 
Article as “the Cooperation”) with a view to facilitating trade in goods between them. 
2. The forms of the Cooperation may include the following:  WT/REG198/1 
 Page 17 
 
 
 (a) conducting joint studies and holding semina rs and symposia, in order to enhance 
mutual understanding of their domestic technical regulations, standards and 
conformity assessment procedures; 
(b) exchanging government officials for training purpose; 
(c) contributing jointly to activities related to technical regulations, standards and 
conformity assessment procedures in in ternational and regional fora;  and 
(d) encouraging entities related to technical regulations, standards and conformity 
assessment procedures other than the Governme nts of the Parties to participate in the 
Cooperation and to implement cooperation between such entities. 
3. The implementation of this Article shall be subj ect to the availability of appropriated funds 
and the applicable laws and regulations of each Party. 
Article 18 
Enquiry Points  
Each Party shall designate an enquiry point whic h is able to answer all reasonable enquiries 
from the other Party regarding technical regulations , standards and conformity assessment procedures 
and, if appropriate, to provide  their relevant information. 
Article 19 
Sub-Committee On Technical Regulations,Standards  
And Conformity Assessment Procedures  
1. For the purposes of the effective implementation and operation of this Section, a Sub-
Committee on Technical Regulations, Standards and Conformity Assessment Procedures (hereinafter 
referred to in this Article as “the Sub-Committe e”) shall be established pursuant to Article 165. 
2. The Sub-Committee shall meet at such venue as may be agreed by the Parties and shall make 
efforts to meet once a year.  
3. The functions of the Sub-Committee shall be: 
(a) exchanging information on technical re gulations, standards and conformity 
assessment procedures; 
(b) reviewing the implementation a nd operation of this Section; 
(c) discussing any issues related to this Section; 
(d) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(e) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. WT/REG198/1 
Page 18  
 
 Article 20 
Non-Application Of Chapter 15
 
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Section. 
Article 21 
Relation To Section 2  
This Section shall not apply to SPS measures referred to in Section 2. 
CHAPTER 4:  RULES OF ORIGIN 
Article 22 
Originating Goods  
1. Except as otherwise provided for in this Chapter, a good shall be an originating good where: 
(a) the good is wholly obtained or produced entirel y in the Area of one or both Parties, as 
defined in Article 38; 
(b) the good is produced entirely in the Area of one or both Parties exclusively from 
originating materials; 
(c) the good satisfies the requirements set out in Annex 4, as well as all other applicable 
requirements of this Chapter, when the good is produced entirely in the Area of one 
or both Parties using non-originating materials;  or 
(d) except for a good provided for in Chapters 61 through 63 of the Harmonized System, 
the good is produced entirely in the Area of one or both Parties, but one or more of the non-originating materials that are used in the production of the good does not undergo an applicable change in tariff classification because: 
(i) the good was imported into a Party in an unassembled or a disassembled form 
but was classified as an assembled good pursuant to Rule 2(a) of the General 
Rules for the Interpretation of the Harmonized System;  or 
(ii) the heading for the good provides for and specifically describes both the good 
itself and its parts and is not furthe r subdivided into subheadings, or the 
subheading for the good provides for and specifically describes both the good 
itself and its parts; 
provided that the regional value content of  the good, determined in accordance with 
Article 23, is not less than 50 percent, unless otherwise provided for in Annex 4, and that the good satisfies all other appli cable requirements of this Chapter. 
2. For the purposes of this Chapter, the production of  a good using non-origin ating materials that 
undergo an applicable change in tariff classification and satisfying other require ments, as set out in 
Annex 4, shall occur entirely in the Area of one or both Parties and every regional value content of a good shall be entirely satisfied in the Area of one or both Parties.  WT/REG198/1 
 Page 19 
 
 
 Article 23 
Regional Value Content  
1. Except as provided for in paragraph 4 below and Article 26, the regional value content of a 
good shall be calculated on the basis of the transac tion value method set out in paragraph 2 below. 
2. For the purposes of calculating the regional valu e content of a good on the basis of the 
transaction value method, the following formula shall be applied: 
TV - VNM 
RVC = ------------------------------ x 100 
TV 
where: 
RVC: the regional value content, expressed as a percentage; 
TV: transaction value of the good adjusted to a F.O.B. basis, except as provided for in 
paragraph 3 below;  and 
VNM: value of non-originating materials used by the producer in the production of the good 
determined pursuant to Article 24. 
3. For the purposes of paragraph 2 above, when the producer of the good does not export it 
directly, the transaction value of the good shall be ad justed to the point where the buyer receives the 
good from the producer in the Area of a Party where the producer is located. 
4. In the event that there is no transaction va lue or the transaction value of the good is 
unacceptable under Article 1 of the Customs Valu ation Code, the value of the good shall be 
determined in accordance with Articles 2 through 7 of the Customs Valuation Code. 
5. A producer may average the regional value content for one or more goods classified in the 
same subheading under the Harmonized System that he  produces in the same plant or in more than 
one plant in the Area of one Party, on the basis of either all the goods produced by the producer or only those goods exported to the other Party: 
(a) in its fiscal year or period;  or 
(b) in any period of 1, 2, 3, 4 or 6 months. 
Article 24 
Value Of Materials
 
1. The value of a material: 
(a) shall be the transaction value of the material;  or 
(b) in the event that there is no transaction valu e or the transaction value of the material 
is unacceptable under Article 1 of the Custom s Valuation Code, shall be determined 
in accordance with Articles 2 through  7 of the Customs Valuation Code. 
2. Where not included under subparagraph 1(a) or 1(b) above, the value of a material: WT/REG198/1 
Page 20  
 
 (a) shall include freight, insurance, packing a nd all other costs incurred in transporting 
the material to the importation port in the Party where the producer of the good is located, except as provided for in paragraph 3 below;  and 
(b) may include the cost of waste and spoilage resulting from the use of the material in 
the production of the good, less the valu e of reusable scrap or by-product. 
3. The value of a non-originating material sha ll not include, where the producer acquires the 
material in the Area of the Party where the producer  is located, freight, insurance, packing and all 
other costs incurred in transporting the material fro m the warehouse of the supplier of the material to 
the place where the producer is located ;  as well as any other known and ascertainable cost incurred in 
the Area of the producer of the good. 
4. The value of non-originating materials used by the producer in the production of the good 
shall not include the value of the non-originating materials used by: 
(a) another producer in the production of an or iginating material which is acquired and 
used by the producer of the good in the production of such good;  or 
(b) the producer of the good in the production of a self-produced originating material, 
which is designated by the producer as an intermediate material under Article 26. 
Article 25 
De Minimis
 
1. A good shall be considered to be an origina ting good if the value of all non-originating 
materials used in the production of the good that  do not undergo an applicable change in tariff 
classification set out in Annex 4 is not more than  10 percent of the transaction value of the good, 
adjusted to the basis set out in paragraph 2 or 3, as the case may be, of Article 23, and the good 
satisfies all other applicable requirements of this Chapter. 
2. Where the good referred to in paragraph 1 above is also subject to a regional value content, 
the value of such non-originating materials shall be taken into account in determining the regional 
value of the good and the good shall be required to sa tisfy all other applicable requirements of this 
Chapter. 
3. A good that is subject to a regional value conten t requirement pursuant to Annex 4 shall not 
be required to satisfy such requirement if the value of all non-originating materials is not more than 10 
percent of the transaction value of the good, adjusted to the basis set out in paragraph 2 or 3, as the 
case may be, of Article 23. 
4. Paragraph 1 above shall not apply to: 
(a) a good provided for in Chapters 50 through 63 of the Harmonized System;  or 
(b) a good provided for in Chapters 1 through 27 of the Harmonized System, except 
where the non-originating material used in the production of the good is provided for in a different subheading to the good classifi ed in Chapter 1, 4 through 15, or 17 
through 27 of the Harmonized System for wh ich the origin is being determined under 
this Article.  WT/REG198/1 
 Page 21 
 
 
 5. A good provided for in Chapters 50 through 63 of the Harmonized System that does not 
originate because certain fibers or  yarns used in the production of the material that determines the 
tariff classification of the good do not undergo an app licable change in tariff classification set out in 
Annex 4, shall nonetheless be considered to originate if  the total weight of all such fibers or yarns in 
that material is not more than 7 percent of the total weight of such material. 
Article 26 
Intermediate Materials  
1. For the purposes of determining the regional va lue content of a good under Article 23, the 
producer of the good may designate as an intermedia te material, any self-produced material used in 
the production of the good. 
2. Where an intermediate material is subject to a regional value content requirement under 
subparagraph 1(d) of Article 22 or  Annex 4, the value of the in termediate material shall be: 
(a) the total cost incurred with respect to all goods produced by the producer of the good 
which may be reasonably allocated to such intermediate material, in accordance with 
the Uniform Regulations referred to in Article 10;  or 
(b) the sum of each cost which are part of the total cost incurred with respect to such 
intermediate material, in accordance with the Uniform Regulations referred to in 
Article 10. 
In this case, the regional value content of such material shall be not less than the percentage 
set out in Annex 4 minus 5 percent. 
Article 27 
Accumulation  
For the purposes of determining whether a good is  an originating good, a producer of the 
good may accumulate his production with the producti on of one or more producers in the Area of one 
or both Parties, of materials incorporated in the goo d, in a manner that the production of the materials 
is considered to have been performed by that pr oducer, provided that the provisions of Article 22 are 
satisfied. 
Article 28 
Fungible Goods And Materials  
1. For the purposes of determining whether a good is an originating good, where originating and 
non-originating fungible materials that are commingled in an inventory, are used in the production of 
a good, the origin of the materials may be determin ed pursuant to an inventory management method 
set out in paragraph 3 below. 
2. Where originating and non-originating fungible goods are commingled in an inventory and, 
prior to exportation do not underg o any production process or any operation in the Area of the Party 
where they were commingled other than unloading , loading or any other operation necessary to 
preserve it in good condition or to transport the good to  the other Party, the origin of the good may be 
determined pursuant to an inventory manage ment method set out in paragraph 3 below. WT/REG198/1 
Page 22  
 
 3. The inventory management methods for fungible goods or materials shall be the following: 
(a) “FIFO method” (first in-first out) is the inventory management method by which the 
origin of the number of fungible goods or materials first received in the inventory is considered to be the origin of the same number of fungible goods or materials first withdrawn from the inventory; 
(b) “LIFO method” (last in-first out) is the inventory management method by which the 
origin of the number of fungible goods or ma terials last received in the inventory is 
considered to be the origin of the same number of fungible goods or materials first withdrawn from the inventory;  or 
(c) “average method” is the inventory manageme nt method by which, except as provided 
for in paragraph 4 below, the origin of fungible goods or materials withdrawn from an 
inventory is based on the ratio, calcu lated under the following formula: 
TOM 
ROM = ------------------------------ x 100 
TONM 
where: 
ROM: ratio of originating fungible goods or materials; TOM: total units of originating fungible goods  or materials in the inventory prior to 
the shipment;  and 
TONM: total sum of units of originating and non-originating fungible goods or 
materials in the inventory prior to the shipment. 
4. Where a good is subject to a regional value conten t requirement, the determination of value of 
non-originating fungible materials shall be  made through the following formula: 
TNM 
RNM = ------------------------------ x 100 
TONM 
where: 
RNM: ratio of value of non-originating fungible materials; TNM: total value of fungible non-originating materials in the inventory prior to the 
shipment;  and 
TONM: total value of originating and non-origin ating fungible materials in the inventory 
prior to the shipment. 
5. Once an inventory management method set out in  paragraph 3 above has been chosen, it shall 
be used through all the fiscal year or period.  WT/REG198/1 
 Page 23 
 
 
 Article 29 
Sets, Kits Or Composite Goods  
1. Sets, kits and composite goods classified pursuan t to Rule 3 of the General Rules for the 
Interpretation of the Harmonized System, and th e goods specifically described as sets, kits or 
composite goods in the nomenclature of the Harmon ized System, shall qualify as originating, where 
every good contained in the sets, kits or composite goods satisfies the applicable rule of origin for 
each of them under this Chapter. 
2. Notwithstanding paragraph 1 above, a set, k it or composite good shall be considered as 
originating, if the value of all non-originating goods used in the collection of the set, kit or composite 
good does not exceed 10 percent of the transaction value of the set, kit or composite good, adjusted to 
the basis set out in paragraph 2 or 3, as the case ma y be, of Article 23, and such set, kit or composite 
good satisfies all other applicable  requirements of this Chapter. 
3. The provisions of this Article shall prevail over th e specific rules of origin set out in Annex 4. 
Article 30 
Indirect Materials  
Indirect materials shall be considered to be originating without regard to where they are 
produced and the value of such materials shall be their cost as reported in the accounting records of 
the producer of the good. 
Article 31 
Accessories, Spare Parts And Tools  
1. Accessories, spare parts or tools delivered with the good that form part of the good’s standard 
accessories, spare parts or tools, shall be disregar ded in determining whether all the non-originating 
materials used in the production of the good undergo the applicable change in tariff classification set 
out in Annex 4, provided that: 
(a) the accessories, spare parts or tools ar e not invoiced separately from the good, 
without regard of whether they are separat ely detached in the commercial invoice;  
and 
(b) the quantities and value of the accessories, sp are parts or tools are customary for the 
good. 
2. If the good is subject to a regional value conten t requirement, the valu e of the accessories, 
spare parts or tools shall be taken into account as th e value of originating or non-originating materials, 
as the case may be, in calculating the regional value content of the good. 
Article 32 
Packaging Materials And Containers For Retail Sale  
1. Packaging materials and containers in which a good is packaged for retail sale shall, if 
classified with the good pursuant to Rule 5 of the General Rules for the Interpretation of the WT/REG198/1 
Page 24  
 
 Harmonized System, be disregarded in determining whether all the non-originating materials used in 
the production of the good undergo th e applicable change in tariff classification set out in Annex 4. 
2. If the good is subject to a regional value conten t requirement, the value of such packaging 
materials and containers for retail sale shall be ta ken into account as the value of originating or non-
originating materials, as the case may be, in cal culating the regional value content of the good. 
Article 33 
Packing Materials And Containers For Shipment
 
Packing materials and containers in which a good is packed for shipment shall be disregarded 
in determining whether: 
(a) all non-originating materials used in the pr oduction of the good undergo an applicable 
change in tariff classification set out in Annex 4;  and 
(b) the good satisfies a regional value content requirement. 
Article 34 
Non-Qualifying Operations  
1. A good shall not be considered to be an  originating good merely by reason of: 
(a) dilution with water or another substan ce that does not materially alter the 
characteristics of the good; 
(b) simple operations for the maintenance of the good during transportation or storing, 
such as ventilation, refrigeration, removal of damaged parts, drying or addition of 
substances; 
(c) sieving, classification, selection; 
(d) packing, repacking or packaging for retail sale; 
(e) collection of goods to form sets, kits or composite goods; 
(f) application of stamps, labels or similar distinctive signs; 
(g) washing, including removal of dust, oxi de, oil, paint or other coverings; 
(h) mere collection of parts and components classified as a good, according to Rule 2(a) 
of the General Rules for the Interpretation of the Harmonized System.  Mere 
collection does not include the collection of parts and components of disassembled 
originating goods that were previously di sassembled for consideration of packaging, 
handling or transportation;  or 
(i) mere disassembly of the good into parts or  components.  Disassembling originating 
goods that were previously assembled, for consideration of packaging, handling or 
transportation, shall not be considered as mere disassembly. 
2. The provisions of this Article shall prevail over th e specific rules of origin set out in Annex 4.  WT/REG198/1 
 Page 25 
 
 
 Article 35 
Transshipment  
1. An originating good shall be considered as non-originating, even if it has undergone 
production that satisfies the requirements of Article 22 if, subsequent to that production, outside the 
Areas of the Parties, the good: 
(a) undergoes further production, or operations other than unloading, reloading or any 
other operation necessary to preserve it in goo d condition or to tr ansport it to the 
other Party;  or 
(b) does not remain under surveillance of the customs authorities in one or more non-
Parties where it undergoes transshipment or temporary storage in those non-Parties. 
2. Evidence that an originating good has not lost its originating condition by means of paragraph 
1 above shall be provided to the custom s authority of the importing Party.  
Article 36 
Application And Interpretation  
1. For the purposes of this Chapter: 
(a) the basis for tariff classification is the Harmonized System; 
(b) the determination of transaction value of a good or of a material shall be made in 
accordance with the Customs Valuation Code;  and 
(c) all costs referred to in this Chapter shall be recorded and maintained in accordance 
with the Generally Accepted Accounting Prin ciples applicable in the Party in which 
the good is produced. 
2. For the purposes of this Chapter, in applying the Customs Valuation Code to determine the 
transaction value of a good or a material: 
(a) the principles of the Customs Valuation C ode shall apply to domestic transactions, 
with such modifications as may be required by the circumstances, as would apply to international transactions;  and 
(b) the provisions of this Chapter shall preva il over the Customs Valuation Code to the 
extent of any difference. 
Article 37 
Sub-Committee, Consultation And Modifications
 
1. For the purposes of the effective implementation and operation of this Chapter and Chapter 5, 
a Sub-Committee on Rules of Origin, Certificate of  Origin and Customs Procedures (hereinafter 
referred to in this Article as “the Sub-Committe e”) shall be established pursuant to Article 165.  
2. The Sub-Committee shall meet at such venue a nd times as may be agreed by the Parties. WT/REG198/1 
Page 26  
 
 3. The functions of the Sub-Committee shall be: 
(a) reviewing and making appropriate reco mmendations, as needed, to the Joint 
Committee on the implementation and operati on of this Chapter and Chapter 5; 
(b) reviewing and making appropriate reco mmendations, as needed, to the Joint 
Committee on the: 
(i) tariff classification and customs valuati on matters relating to determinations 
of origin; 
(ii) certificate of origin referred to in Article 39; 
(c) reviewing and making appropriate reco mmendations, as needed, to the Joint 
Committee on any modification to Annex 4, proposed by either Party, duly based on 
issues related with the determination of origin; 
(d) reviewing and making appropriate reco mmendations, as needed, to the Joint 
Committee on the Uniform Regulations referred to in Article 10;   
(e) considering any other matter as the Parties may agree related to this Chapter and 
Chapter 5; 
(f) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(g) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
4. The recommendation of the Sub-Committee sh all be sent to the Joint Committee for 
necessary action under Article 165. 
5. The Parties shall consult and cooperate to ensure  that this Chapter and Chapter 5 are applied 
in an effective and uniform manner in accordance with  the provisions, the spirit and the objectives of 
this Agreement. 
6. Modifications to Annex 4 recommended by the Sub-Committee pursuant to subparagraph 3(c) 
above and proposed by both Parties may be adopte d by the Joint Committee pursuant to subparagraph 
2(e)(i) of Article 165.  The adopted modifications shall be confirmed by an exchange of diplomatic 
notes and shall enter into force on the date specified in the said notes.  The modified part of Annex 4 
shall supersede the corresponding pa rt provided for in Annex 4. 
Article 38 
Definitions
 
For the purposes of this Chapter: (a) the term “Customs Valuation Code” means the Agreement on Implementation of 
Article VII of the General Agreement on Ta riffs and Trade 1994 in Annex 1A to the 
WTO Agreement, as may be amended, including its interpretative notes; 
(b) the term “direct overhead” means overhead in curred during a period, directly related 
to the good, other than direct material costs and direct labor costs;  WT/REG198/1 
 Page 27 
 
 
 (c) the term “factory ships of a Party” a nd “vessels of a Party” respectively means 
factory ships and vessels: 
(i) which are registered in the Party; 
(ii) which sail under the flag of that Party; 
(iii) which are owned to an extent of at least  50 percent by nationals of that Party, 
or by an enterprise with its head office  in that Party, of which the managers 
or representatives, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of that Party, and of which, in addition, in the case of partnerships or limited 
companies, at least half the capital belongs to that Party or to public bodies or 
nationals or enterprises of that Party; 
(iv) of which the master and officers are all nationals of that Party;  and 
(v) of which at least 75 percent of the crew are nationals of that Party; 
(d) the term “F.O.B.” means free on board, regardless of the mode of transportation, at 
the point of direct shipment by the seller to the buyer; 
(e) the term “fungible goods” means goods th at are interchangeable for commercial 
purposes, whose properties are essentially identical, not practical to distinguish by the naked eye; 
(f) the term “fungible materials” means mate rials that are interchangeable for 
commercial purposes and whose properties are essentially identical, not practical to 
distinguish by the naked eye; 
(g) the term “Generally Accepted Accoun ting Principles” means the recognized 
consensus or substantial authoritative support in a Party with respect to the recording 
of revenues, expenses, costs, assets and liabilities, the disclosure of information and the preparation of financial statements.  These standards may be broad guidelines of 
general application as well as detailed standards, practices and procedures; 
(h) the term “goods wholly obtained or produced entirely in the Area of one or both 
Parties” means: 
(i) mineral goods extracted in the Area of one or both Parties; 
(ii) vegetable goods harvested in the Area of one or both Parties; 
(iii) live animals born and raised in the Area of one or both Parties; 
(iv) goods obtained from hunting or fishing in the Area of one or both Parties;   
(v) fish, shellfish and other marine species taken by vessels of a Party from the 
sea outside the territorial seas of the Party; 
(vi) goods produced on board factory ships of a Party from the goods referred to 
in subparagraph (v); WT/REG198/1 
Page 28  
 
 (vii) goods taken by a Party or a person of a Party from the seabed or beneath the 
seabed outside territorial seas of the Party, provided that the Party has rights to exploit such seabed; 
(viii) waste and scrap derived from: 
(AA) production in the Area of one or both Parties;  or 
(BB) used goods collected in the Area of  one or both Parties, provided such 
goods are fit only for the recovery of raw materials;  or 
(ix) goods produced in the Area of one or both Parties exclusively from goods 
referred to in subparagraphs (i) throug h (viii), or from their derivatives, at 
any stage of production; 
(i) the term “indirect material” means a good used in the production, testing or 
inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the opera tion of equipment associated with the 
production of a good, including: 
(i) fuel and energy; 
(ii) tools, dies and molds; 
(iii) spare parts and materials used in the maintenance of equipment and 
buildings; 
(iv) lubricants, greases, compounding materials and other materials used in 
production or used to operate equipment and buildings; 
(v) gloves, glasses, footwear, clothing, safety equipment and supplies; 
(vi) equipment, devices and supplies used for testing or inspecting the goods; 
(vii) catalysts and solvents;  and 
(viii) any other goods that are not incorporated into the good but whose use in the 
production of the good can reasonably be demonstrated to be a part of that 
production; 
(j) the term “indirect overhead” means overhead incurred during a period, other than 
direct overhead, direct labor costs and direct material costs; 
(k) the term “intermediate material” means a mate rial that is self-produced and used in 
the production of a good, and designated pursuant to Article 26; 
(l) the term “material” means a good that is used in the production of another good; 
(m) the term “packing materials and containers  for shipment” means goods that are used 
to protect a good during transportation, othe r than packaging materials and containers 
for retail sale;  WT/REG198/1 
 Page 29 
 
 
 (n) the term “place where the producer is lo cated” means in relation to a good, the 
production plant of that good; 
(o) the term “producer” means a person who c onducts a production of a good or material; 
(p) the term “production” means methods of  obtaining goods including manufacturing, 
assembling, processing, growing, mining,  harvesting, fishing, and hunting; 
(q) the term “self-produced material” means a mate rial that is produced by the producer 
of a good and used in the production of that good; 
(r) the term “total cost” means the sum of  the following elements, calculated in 
accordance with the  Generally Accepted A ccounting Principles of the Party and the 
Uniform Regulations referred to in Article 10: 
(i) the direct materials cost used in the production of the good; 
(ii) the direct labor cost used in the production of the good;  and 
(iii) the amount of direct and indirect overhead of the good, reasonably allocated 
to the good, except for those not to be included in the cost of the good; 
(s) the term “transaction value of a good” means the price actually paid or payable for a 
good with respect to a transaction of the producer of the good, pursuant to the 
principles of Article 1 of the Customs Valu ation Code, adjusted in accordance with 
the principles of paragraphs 1, 3 and 4 of  Article 8 of the Customs Valuation Code, 
regardless of whether the good is sold for e xport.  For the purposes of this definition, 
the seller referred to in the Customs Valua tion Code shall be the producer of the 
good; 
(t) the term “transaction value of a material” means the price actually paid or payable for 
a material with respect to a transaction of the producer of the good, pursuant to the 
principles of Article 1 of the Customs Valu ation Code, adjusted in accordance with 
the principles of paragraphs 1, 3 and 4 of  Article 8 of the Customs Valuation Code, 
regardless of whether the material is so ld for export.  For the purposes of this 
definition, the seller referred to in the Cu stoms Valuation Code shall be the supplier 
of the material, and the buyer referred to in  the Customs Valuation Code shall be the 
producer of the good;  and 
(u) the term “used” means used or consumed in the production of goods. 
CHAPTER 5:  CERTIFICATE OF ORIGIN AND CUSTOMS PROCEDURES 
Section 1 - Certification Of Origin  
Article 39 
Certificate Of Origin  
1. For the purposes of this Section and Section 2,  upon the date of entry into force of this 
Agreement, the Parties shall establish a format for th e certificate of origin in the Uniform Regulations 
referred to in Article 10. WT/REG198/1 
Page 30  
 
 2. The certificate of origin referred to in paragr aph 1 above will have the purpose of certifying 
that a good being exported from one Party into th e other Party qualifies as an originating good. 
3. The certificate of origin referred to in paragr aph 1 above shall be issued by the competent 
governmental authority of the exporting Party on requ est having been made in writing by the exporter 
or, under the exporter’s responsibility, by his author ized representative, in accordance with paragraph 
4 below.  The certificate of origin must be stamped and signed by the competent governmental 
authority of the exporting Party or its designees at the time of issue. 
For the purposes of this Article, the competent governmental authority of the exporting Party 
may designate other entities or bodies to be responsib le for the issuance of the certificate of origin, 
prior authorization given under its applicable laws and regulations. 
Where the competent governmental authority of  the exporting Party designates other entities 
or bodies to carry out the issuance of the certifi cate of origin, the exporting Party shall notify in 
writing the other Party of its designees. 
The exporting Party shall revoke the designation, where the issuance of certificates of origin 
by a designee is not in conformity with the provisi ons provided for in this Section and the situation 
warrants the revocation.  For this purpose, the expor ting Party shall consider views expressed by the 
importing Party in deciding on revoking the designation. 
4. Prior to the issuance of a certificate of origin, an exporter that requests a certificate of origin 
must prove to the competent governmental authority of the exporting Party or its designees, that the good to be exported qualifies as an originating good. 
Where an exporter is not the producer of the good, the exporter may request a certificate of 
origin on the basis of a declaration voluntarily provided by the producer of the good that demonstrates 
that such producer has proved to the competent gove rnmental authority or its designees, that the good 
concerned qualifies as an originating good.  Nothing in this paragraph shall be  construed to oblige the 
producer of the good to certificate that the good qu alifies as an originating good.  If the producer 
decides not to provide the declaration concerned,  the exporter shall be required to prove to the 
competent governmental authority or its designees that the good to be exported qualifies as an 
originating good. 
5. The competent governmental authority or its d esignees shall issue a certificate of origin after 
the exportation of a good when it is requested by th e exporter in accordance with paragraph 4 above.  
The certificate of origin issued retrospectively must be endorsed with the phrase set out in the 
Uniform Regulations referred to in Article 10.  
6. In the event of theft, loss or destruction of a certificate of origin, the exporter may request to 
the competent governmental authority or its desi gnees which issued it a duplicate made out on the 
basis of the export documents in their possession.  Th e duplicate issued in this way must be endorsed 
with the phrase set out in the Uniform Regulations referred to in Article 10. 
7. The certificate of origin for a good imported into the importing Party shall be completed in 
the English language. If the certificate of origin is not completed in the English language, a translation 
into the official language of the importing Party shall be  attached thereto.  If the certificate of origin is 
completed in the English language, a translation into  the Spanish or the Japanese language shall not be 
required. 
8. Each Party shall provide that a valid certificate of  origin that fulfills the requirements of this 
Section that is applicable to a single importation of  a good into the other Party, shall be accepted by  WT/REG198/1 
 Page 31 
 
 
 the customs authority of the importing Party for 1 year or another period that the Parties may agree, 
after the date on which the certificate was issued. 
9. The competent governmental authority of the exporting Party shall: 
(a) determine the administrative mechanisms for the issuing of the certificate of origin; 
(b) provide, at the request of the importing Party in accordance with Article 44 
information relating to the origin of the goods for which preferential tariff treatment 
was claimed;  and 
(c) provide the other Party with specimen impressions of stamps used in the offices of 
the competent governmental authority or its designees for the issu e of the certificate 
of origin. 
Article 40 
Obligations Regarding Importations  
1. Except as otherwise provided for in this Section, each Party shall require an importer that 
claims preferential tariff tr eatment for a good imported from the other Party to:  
(a) make a written declaration, based on a va lid certificate of origin, that the good 
qualifies as an originating good;   
(b) have the certificate in its possession at the time the declaration is made;   
(c) provide the certificate on the request of the customs authority;  and 
(d) promptly make a corrected declaration and pay any duties owing where the importer 
has reason to believe that a certificate on which a declaration was based contains information that is not correct. 
2. Where an importer claims preferential tariff treatment for a good imported into a Party from 
the other Party, the customs authority of the impor ting Party may deny preferential tariff treatment to 
the good if the importer fails to comply with any requirement under this Article. 
3. Each Party shall ensure that, in the case that the importer at the time of importation does not 
have in his possession a certificate of origin, the importer of the good may, in accordance with the 
domestic laws and regulati ons of the importing Party, provide the certificate of origin and if required 
such other documentation relating to the importation of  the good at a later stage, within a period not 
exceeding 1 year after the time of importation. 
Article 41 
Obligations Regarding Exportations
 
1. Each Party shall ensure that an exporter or  a producer that has completed and signed a 
certificate of origin, and that has reasons to believe that the certificate contains incorrect information, 
shall promptly notify in writing, of any change th at could affect the accuracy or validity of the 
certificate of origin to all persons to whom he  gave the certificate, as well as to its competent 
governmental authority or its designees and to th e customs authority of the importing Party.  The 
notification shall be sent by one of the methods stipul ated in paragraph 4 of Article 44.  If this is done WT/REG198/1 
Page 32  
 
 prior to the commencement of a verification referred to in Article 44 and if the exporter or producer 
demonstrates that at time of issuance of the cer tificate of origin he possessed facts upon which he 
could reasonably rely to the effect that the good qu alified as an originating good, the exporter or 
producer shall not be subject to penalties for having submitted an incorrect certificate. 
2. Each Party shall ensure that providing false declarations or documents to its competent 
governmental authority or its designees by its export ers or producers stating that the good qualifies as 
an originating good shall be subject to penalties or other appropriate sanctions as provided for in 
Article 46. 
3. Each Party shall ensure that the exporter re ferred to in paragraph 3 of Article 39 or the 
producer referred to in paragraph 4 of  Article 39, as the case may be, shall be prepared to submit at 
any time, at the request of the competent governme ntal authority or its designees of the exporting 
Party, all appropriate documents proving the originating status of the goods concerned as well as the 
fulfillment of other requirements under this Agreement.  
Article 42 
Exceptions
 
Each Party shall ensure that a certificate of origin shall not be required for:  
(a) a commercial importation of a good whose value does not exceed 1,000 United States 
dollars or its equivalent amount in the Party’s currency, or such higher amount as it may establish, provided that it may require that the invoice accompanying the importation includes a statement indicating that the good qualifies as an originating good;   
(b) a non-commercial importation of a good whose value does not exceed 1,000 United 
States dollars or its equivalent amount in the Party’s currency, or such higher amount 
as it may establish;  or  
(c) an importation of a good for which the importing Party has waived the requirement 
for a certificate of origin,  
provided that the importation does not form part of a series of importations that may 
reasonably be considered to have been undert aken or arranged for the purposes of avoiding 
the certification requirements of Articles 39 and 40.  
Section 2 - Administration And Enforcement
 
Article 43 
Records  
1. Each Party shall ensure that:  
(a) an exporter referred to in pa ragraph 3 of Article 39 or a producer referred to in 
paragraph 4 of Article 39, that has the documentation that proves that the good qualifies as an originating good for the purposes of requesting a certificate of origin 
shall maintain in that Party, for 5 year s after the date on which the certificate was 
issued or for such longer period as the Part y may specify, the records relating to the  WT/REG198/1 
 Page 33 
 
 
 origin of a good for which preferential tariff treatment was claimed in the other Party, 
including records associated with: 
(i) the purchase of, cost of, value of, and payment for, the good that is exported; 
(ii) the purchase of, cost of, value of, and payment for, all materials, including 
indirect materials, used in the production of the good that is exported;  and  
(iii) the production of the good in the form in which the good is exported;  and  
(b) an importer claiming preferential tariff treat ment for an imported good shall maintain 
for 5 years after the date of importation of the good or for such longer period as the Party may specify, such documentation as the Party may require relating to the 
importation of the good. 
2. Each Party shall ensure that the competent gove rnmental authority or its designees shall keep 
a record of the certificate of origin issued for a minimum period of 5 years after the date on which the certificate was issued.  Such record will include all antecedents, which were presented to prove the 
qualification as an originating good. 
Article 44 
Origin Verifications
 
1. For the purposes of determining whether a good imported from the other Party under 
preferential tariff treatment qualifies as an orig inating good, the importing Party may conduct a 
verification through its customs authority, by means of: 
(a) request of information relating to the origin of a good to the competent governmental 
authority of the exporting Party on the basis of a certificate of origin; 
(b) written questionnaires to an exporter or a pr oducer of the good in the other Party; 
(c) request to the exporting Party to collect information, including that contained in the 
documents maintained pursuant to Article 43, that demonstrate the compliance with 
Chapter 4 and to check, for that purpose, the facilities used in the production of the 
good, through a visit by its competent governmental authority along with the customs 
authority of the importing Party to the premises of an exporter or a producer of the 
good in the exporting Party, and to provide the collected information in the English 
language to the customs authority of the importing Party;  or 
(d) such other procedure as the Parties may agree. 
2. Where the customs authority of the importing Pa rty has initiated a verification in accordance 
with this Article, the provisions of A nnex 5 shall be applied as appropriate. 
3. For the purposes of subparagraph 1(a), the comp etent governmental authority of the exporting 
Party shall provide the information requested, in a period not exceeding 4 months, after the date of the 
request. 
If the customs authority of the importing Party considers necessary, it may require additional 
information relating to the origin of the good.  If additional information is requested by the customs WT/REG198/1 
Page 34  
 
 authority of the importing Party, the competent gov ernmental authority of the exporting Party shall 
provide the information requested in a period not exceeding 2 months after the date of the request. 
If the competent governmental authority of the exporting Party fails to respond to the request 
within the period specified therein, the customs au thority of the importing Party shall determine that 
the good subject to the verification does not qualify as  an originating good, therefore considering the 
certificate of origin as not valid, and shall deny it preferential tariff treatment. 
4. The customs authority of the importing Party shall send the questionnaires referred to in 
subparagraph 1(b), to the exporte rs or producers in the exporting Party, by any of the following 
means: 
(a) certified or registered mail with confirmation of receipt; 
(b) any other method that produces a confirmation of  receipt by the exporter or producer;  
or 
(c) such other  method that the Parties may agree. 
The customs authority of the importing Party shall immediately communicate to the 
competent governmental authority of the exporting Pa rty whenever it sends a questionnaire referred to 
in subparagraph 1(b). 
5. The provisions of paragraph 1 above shall not pr event the customs authority or the competent 
governmental authority, as the case may be, of the importing Party from exercising its powers to take 
action in that Party, in relation with the compliance with its domestic laws and regulations by its own 
importers, exporters or producers. 
6. The exporter or producer who receives a questio nnaire pursuant to subparagraph 1(b) shall 
have 30 days from the date of its receipt to answer such questionnaire and return it.  
7. Where the importing Party has received the answer to the questionnaire referred to in 
subparagraph 1(b) within the period specified in paragraph 6 above, and considers that it requires 
more information to determine whether the good subject  to the verification qualifies as an originating 
good, it may, through its customs authority, reque st additional information from the exporter or 
producer, by means of a subsequent questionnaire, in  which case, the exporter or producer shall have 
30 days from the date of its receipt to answer and return it. 
8. (a) If the response by the exporter or producer to any of the questionnaires referred to in 
paragraph 6 or 7 above does not contain suffi cient information to determine that the 
good is originating, the customs authority of the importing Party may determine that the good subject to the verification does not qualify as an originating good and may 
deny it preferential tariff treatment, upon written determination under paragraph 22 
below. 
(b) If the response to the questionnaire referred to  in paragraph 6 above is not returned 
within the period specified therein, the cu stoms authority of the importing Party shall 
determine that the good subject to the verification does not qualify as an originating 
good, therefore considering the certificate of origin as not valid, and shall deny it 
preferential tariff treatment. 
9. The conducting of a verification in accordance with  one of the methods set forth in paragraph 
1 above shall not preclude the use of another veri fication method provided fo r in paragraph 1 above.  WT/REG198/1 
 Page 35 
 
 
 10. When requesting the exporting Party to conduct a visit pursuant to subparagraph 1(c), the 
importing Party shall deliver a written communication with such request to the exporting Party, the 
receipt of which is to be confirmed by the latter Part y, at least 30 days in advance of the proposed date 
of the visit.  The competent governmental authority of the exporting Party shall request the written consent of the exporter or producer whose premises are to be visited.  
11. The communication referred to in paragraph 10 above shall include: 
(a) the identity of the customs aut hority issuing the communication; 
(b) the name of the exporter or producer whose premises are requested to be visited; 
(c) the proposed date and place of the visit; 
(d) the object and scope of the proposed visit, including specific reference to the good or 
goods subject of the verification referred to in the certificate of origin;  and 
(e) the names and titles of the officials of the customs authority of the importing Party to 
be present during the visit. 
12. Any modification to the information referred to  in paragraph 11 above shall be notified in 
writing, prior to the proposed date of th e visit referred to in subparagraph 11(c). 
If the proposed date referred to in subparagraph 11(c) is to be modified, this shall be notified 
in writing at least 10 days prior to the date of the visit. 
13. The exporting Party shall respond in writing to the importing Party, within 20 days of the 
receipt of the communication referred to in paragr aph 10 above, if it accepts or refuses to conduct a 
visit requested pursuant to subparagraph 1(c). 
14. Where the exporting Party refuses to conduct a vis it, or that Party fails to respond to the 
communication referred to in paragraph 10 above within  the period referred to in paragraph 13 above, 
the customs authority of the importing Party shall determine that the good or goods that would have 
been the subject of the visit do not qualify as originating goods, therefore considering the certificate of origin as not valid, and shall deny them preferential tariff treatment. 
15. The competent governmental authority of the exporting Party shall provide, within 45 days, or 
any other mutually agreed period, from the last da y of the visit, to the customs authority of the 
importing Party the information obtained through the visit. 
16. It is confirmed by both Parties that during the course of a verification referred to in paragraph 
1 above, the customs authority of the importing Party may request information necessary for determining the origin of a material used in the production of the good. 
17. For the purposes of obtaining information on the origin of the material used in the production 
of the good, the exporter or producer of the goo d referred to in paragra ph 1 above may request a 
producer of the material to provid e voluntarily the former with information relating to the origin of 
such material.  In case the producer of such materi al desires, such information may be sent to the 
competent governmental authority of the exporting Party for the provision to the customs authority of the importing Party, without the involvement of the exporter or producer of the good. 
18. Where the customs authority of the importing Pa rty requests information relating to the origin 
of a material pursuant to paragraph 16 above, duri ng the course of a verification in accordance with WT/REG198/1 
Page 36  
 
 the method set forth in subparagraph 1(a), the in formation shall be provided by the competent 
governmental authority of the exporting Party in accordance with paragraph 3 above. 
Where the customs authority of the importing Pa rty requests information relating to the origin 
of a material pursuant to paragraph 16 above, duri ng the course of a verification in accordance with 
the method set forth in subparagraph 1(b), the info rmation shall be provided by the exporter or 
producer of the good or the competent governmental authority of the exporting Party, as the case may 
be, in accordance with paragraph 6 or 7 above, as appr opriate and mutatis mutandis, provided that in 
case the information is provided by  the competent governmental authority, the 30 day period referred 
to in paragraph 6 or 7 above shall mean the pe riod beginning on the date of the receipt of the 
questionnaire by that exporter or producer. 
Where the customs authority of the importing Pa rty requests information relating to the origin 
of a material pursuant to paragraph 16 above, duri ng the course of a verification in accordance with 
the method set forth in subparagraph 1(c), the in formation shall be provided by the competent 
governmental authority of the exporting Pa rty in accordance with paragraph 15 above. 
19. The requesting of information relating to the or igin of a material pursuant to paragraph 16 
above during the course of a verification in accordance with one of the methods set forth in paragraph 
1 above shall not preclude the requesting of informati on relating to the origin of a material during the 
course of a verification in accordance with anothe r verification method provided for in paragraph 1 
above. 
20. The customs authority of the importing Party sh all determine that a material used in the 
production of the good is a non-originating material where the exporter or producer of the good or the 
competent governmental authority of the exporting Party, as the case may be, does not provide the 
information that demonstrates that the material in question qualifies as originating, or where the 
information provided is not sufficient to determine whether that material is originating.  Such a 
determination shall not necessarily lead to a d ecision that the good itself is not originating. 
21. Each Party shall, through its customs authority, conduct a verification of a regional value 
content requirement in accordance with the Genera lly Accepted Accounting Principles applied in the 
Party from which the good was exported. 
22. After carrying out the verification procedures outlined in paragraph 1 above, the customs 
authority of the importing Party shall in the mann er specified in paragraph 4 above, provide the 
exporter or producer whose good is subject to the ve rification, a written determination of whether or 
not the good qualifies as an originating good under Chapter 4, including findings of fact and the legal 
basis for the determination.  
23. Where the customs authority of the importing Pa rty denies preferential ta riff treatment to the 
good in question in the cases of paragraph 3, 8(b) or  14 above, a written determination thereof shall be 
sent to the exporter or producer, in the manner specified in paragraph 4 above.  
24. When the Party conducting a verification referre d to in paragraph 1 above determines, based 
on the information obtained during the verification, that a good does not qualify as an originating 
good, and provides the exporter or producer with a written determination pur suant to paragraph 22 
above, it shall grant the exporter or producer whose good was the subject of the verification, 30 days 
from the date of receipt of the written determ ination, to provide any comments or additional 
information before denying preferential tariff treatment to the good, and shall issue a final 
determination after taking into consideration any comments or a dditional information received from 
the exporter or producer during the above-mentione d period, and shall send it to the exporter or 
producer in the manner specified in paragraph 4 above.   WT/REG198/1 
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 25. Where the verification completed by the customs authority of the importing Party indicates 
that an exporter or a producer has repeatedly made  false representations that a good imported into the 
Party qualifies as an originating good, the customs authority of the importing Party may withhold preferential tariff treatment to identical goods expor ted or produced by such person until that person 
establishes compliance with Chapter 4 to that aut hority.  In taking such an action, the customs 
authority of the importing Party shall notify the person who completed and signed the certificate of 
origin and the competent governmental authority of the exporting Party. 
26. Communications from the importing Party to an exporter or producer in the exporting Party 
as well as the response to the questionnaire referred to in subparagraph 1(b)  to the importing Party 
shall be conducted in the English language. 
Article 45 
Confidentiality
 
1. Each Party shall maintain, in accordance w ith its domestic laws and regulations, the 
confidentiality of information provided to it as conf idential pursuant to Section 1 and this Section and 
shall protect that information from disclosure that could prejudice the competitive position of the 
persons providing the information. 
2. Information obtained pursuant to Section 1 and this Section may only be disclosed, for the 
purposes of Section 1 and this Section, to those comp etent authorities of the Parties responsible for the 
administration and enforcement of determinations of  origin and of customs duties and other indirect 
taxes on imports, and shall not be used by a Party in any criminal proceedings carried out by a court 
or a judge, unless the information is requested to th e other Party and provided to the former Party, in 
accordance with the applicable laws of the request ed Party or appropriate international cooperation 
agreements to which both Parties are parties. 
Article 46 
Penalties  
Each Party shall ensure that criminal, civil or administrative penalties or other appropriate 
sanctions against its importers, e xporters and producers for providing false declaration or documents 
relating to Section 1 and this Section to its custom s authority, competent governmental authority or its 
designees, shall be established or maintained. 
Article 47 
Review And Appeal  
Each Party shall ensure that its importers have access to: 
(a) at least one level of administrative review of a decision by its customs authority, 
provided that such review is done by an offici al or office different from the official or 
office making the decision subject to review;  and  
(b) judicial or quasi-judicial review of the decision referred to in subparagraph (a), 
in accordance with its domestic laws and regulations.  WT/REG198/1 
Page 38  
 
 Article 48 
Goods In Transit Or Storage
 
The provisions of this Agreement may be app lied to goods which comply with the provisions 
of Chapter 4 and Section 1, and which on the date of entry into force of this Agreement are in transit, 
in Japan or Mexico, or in temporary storage in bo nded area, subject to the submission to the customs 
authority of the importing Party in accordance with th e domestic laws and regulations of that Party, 
within 4 months of that date, of a certificate of  origin issued retrospec tively, in accordance with 
paragraph 5 of Article 39, by the competent govern mental authority or its designees of the exporting 
Party together with the documents showing that  the goods have been transported directly. 
Article 49 
Definitions  
1. For the purposes of Section 1 and this Section: 
(a) the term “authorized representative“ means the person designated in accordance with 
its domestic laws and regulati ons by the exporter to be r esponsible for completing and 
signing the certificate of origin on his behalf; 
(b) the term “commercial importation“ means th e importation of a good into a Party for 
the purposes of sale, or any commercial, industrial or other like use; 
(c) the term “competent governmental authorit y“ means the authority that, according to 
the legislation of each Party, is responsible for the issuing of the certificate of origin or for the designation of the certification entities or bodies.  In the case of Japan, the Minister of Economy, Trade and Industry or his authorized representative, and in the 
case of Mexico, the Ministry of Economy; 
(d) the term “customs authority“ means the aut hority that, according to the legislation of 
each Party, is responsible for the administra tion of its customs laws and regulations.  
In the case of Japan, the Minister of Finan ce or his authorized representative, and in 
the case of Mexico, the Ministry of Finance and Public Credit; 
(e) the term “determination of origin“ means a determination whether a good qualifies as 
an originating good in acco rdance with Chapter 4; 
(f) the term “exporter“ means a person located in an exporting Party who exports a good 
from the exporting Party;   
(g) the term “identical goods“ means goods that are the same in all respects, including 
physical characteristics, quality and reputation, irrespective of minor differences in 
appearance that are not relevant to a determination of origin; 
(h) the term “importer“ means a person located  in an importing Party who imports a good 
into the importing Party;   
(i) the term “preferential tariff treatment“ means the duty rate applicable to an 
originating good in accordance with this Agreement; 
(j) the term “producer“ means “producer”, as define d in Article 38, located in a Party;    WT/REG198/1 
 Page 39 
 
 
 (k) the term “valid certificate of origin“ mean s a certificate of origin in the format 
referred to in paragraph 1 of Article 39, completed and signed by the exporter or the 
producer and stamped and signed by the competent governmental authority of the exporting Party or its designees, in accordance with the provisions of Section 1 and with the instructions indicated in the format;  and 
(l) the term “value“ means the value of a good or material for the purposes of applying 
Chapter 4. 
2. Except as otherwise defined in this Article, the definitions of Chapter 4 shall apply. 
Section 3 - Customs Cooperation For Trade Facilitation
 
Article 50 
Customs Cooperation For Trade Facilitation  
For prompt customs clearance of goods traded be tween the Parties, each  Party, recognizing 
the significant role of customs authorities and th e importance of customs procedures in promoting 
trade facilitation, shall make cooperative efforts to: 
(a) make use of information and communications technology; 
(b) simplify its customs procedures;  and 
(c) make its customs procedures conform, as fa r as possible, to relevant international 
standards and recommended practices such as those made under the auspices of the Customs Cooperation Council. 
CHAPTER 6:  BILATERAL SAFEGUARD MEASURES 
Article 51 
General Provision
 
1. This Chapter establishes rules for the appli cation of bilateral safeguard measures to 
originating goods, which shall be a pplied only between the Parties (her einafter referred to as “bilateral 
safeguard measures”). 
2. Nothing in this Agreement shall prevent a Party from applying safeguard measures in 
accordance with Article XIX of the GATT 1994 and th e Agreement on Safeguards in Annex 1A to the 
WTO Agreement, as may be amended.  Except for the bilateral safeguard measures provided for in 
this Chapter, no Party shall apply safeguard measu res to originating goods which are accorded the 
preferential tariff treatment in accordance with Article 5, outside the scope of Article XIX of the GATT 1994 and the Agreement on Safeguards in A nnex 1A to the WTO Agreement, as may be 
amended. WT/REG198/1 
Page 40  
 
 Article 52 
Consistency
 
Each Party shall ensure the consistent, impart ial and reasonable administration of its laws, 
regulations, decisions and ruli ngs governing proceedings of bilateral safeguard measures. 
Article 53 
Conditions  
1. Subject to the provisions of this Chapter, each  Party may apply a bilateral safeguard measure, 
to the minimum extent necessary to prevent or remedy the serious injury  and to facilitate adjustment if 
an originating good imported from th e other Party, which is accorded the preferential tariff treatment 
in accordance with Article 5, as a result of the elim ination or reduction of a customs duty, is being 
imported into the former Party in such increased quantities, in absolute terms, and under such 
conditions that the imports of that originating good constitute a substa ntial cause of serious injury, or 
threat thereof, to a domestic industry of the former Party. 
2. A Party proposing to apply a bilateral safe guard measure may (a) suspend the further 
reduction of any rate of customs duty on the origin ating good referred to in  paragraph 1 above in 
accordance with Article 5;  or (b ) increase the rate of customs duty on the originating good to a level 
not to exceed the lesser of: 
(i) the most-favored-nation applied rate of customs duty in effect at the time 
when the bilateral safeguard measure is taken;  and 
(ii) the most-favored-nation applied rate of  customs duty in effect on the day 
immediately preceding the date of entr y into force of this Agreement. 
3. A bilateral safeguard measure shall consist of ta riff measures, including application of tariff 
rate quotas. 
4. Each Party shall not apply bilateral safeguard  measures on an originating good imported up to 
the limit of quota quantities granted under tariff ra te quotas applied in accordance with Schedule in 
Annex 1. 
5. No bilateral safeguard measure sh all be maintained for a period exceeding 3 years.  However, 
in very exceptional circumstances, after the prior consultations referred to in paragraph 9 below, a 
bilateral safeguard measure may be maintained for up  to a total maximum period of 4 years.  A Party 
taking such measure shall present to the other Party a schedule leading to its progressive elimination. 
6. No bilateral safeguard measure sh all be applied again to the imports of the same originating 
good which has been subject to a bilateral safegua rd measure, for a period of time equal to the 
duration of the previous measure or 1 year, whichever is longer. 
7. A Party shall deliver a written notice in Englis h to the other Party immediately upon initiation 
of an investigation referred to in Article 55.  Such written notice shall include the reason for the 
initiation of the investigation, a precise descri ption of the originating good involved and its 
subheading or a more detailed level of the Harmonized System. 
8. A Party shall deliver a written notice in English to  the other Party prior to applying a bilateral 
safeguard measure.  Such written notice shall include a description of evidence of  the serious injury or  WT/REG198/1 
 Page 41 
 
 
 threat thereof caused by the increased imports, a precise description of the originating good involved 
and its subheading or a more deta iled level of the Harmonized System, a precise description of the 
proposed bilateral safeguard measure, its date of entry into force, and its expected duration. 
9. A Party proposing to apply a bilateral safegua rd measure shall provide adequate opportunity 
for prior consultations with the other Pa rty on such measure with a view to, inter alia , reaching an 
agreement on compensation set out in paragraph 10 below. 
10. A Party proposing to apply a bilateral safeguard  measure shall offer the other Party adequate 
means of trade compensation in the form of additio nal concessions of customs duties whose levels are 
substantially equivalent to the value of the additional customs duties expected to result from such 
measure, and, in the case that room for such su fficient additional concessions of customs duties is 
already exhausted through overall reduction of customs duties, other concessions which the Parties 
may agree upon. 
11. If the Parties are unable to agree on compensation within 60 days after the date when a Party 
initiates the application of the bilateral safeguard meas ure, the other Party shall be free to suspend, to 
the trade of the Party applying such measure, the application of concessions of customs duties under 
Article 5, which are substantially equivalent to su ch measure applied.  For this purpose, the Party 
exercising the right of suspension may suspend the application of concessions of customs duties only 
for the minimum period necessary. 
12. Upon termination of a bilateral safeguard measure,  the rate of customs duty shall be the rate 
which would have been in effect but for such measure. 
13. The Parties shall review the provisions of this Chapter, if necessary, after 10 years of the date 
of entry into force of this Agreement. 
Article 54 
Provisional Bilateral Safeguard Measures  
1. In critical circumstances, where delay would cause damage which it would be difficult to 
repair, a Party may take a provisional bilatera l safeguard measure pursuant to a preliminary 
determination that there is clear evidence that in creased imports have caused or are threatening to 
cause serious injury to a domestic industry. 
2. A Party shall deliver a written notice in Englis h to the other Party prior to applying a 
provisional bilateral safeguard measure.  Consulta tions on such measure shall take place promptly 
after such measure is taken. 
3. The duration of the provisional bilateral saf eguard measure shall not exceed 200 days.  
During that period, the pertinent requirements of Articles 52 and 55 shall be met.  The duration of 
such measure shall be counted as a part of the period referred to in para graph 5 of Article 53. 
4. Paragraphs 2 through 4 and 12 of  Article 53 shall be applied mutatis mutandis to the 
provisional bilateral safeguard measure.  The cust oms duty imposed as a result of such measure shall 
be refunded within 60 days if the subsequent investigation referred to  in Article 55 does not determine 
that increased imports have caused or threatened to cause serious injury to a domestic industry. WT/REG198/1 
Page 42  
 
 Article 55 
Bilateral Safeguard Measures Proceedings
 
1. Each Party shall adopt or maintain equitable,  timely, transparent and effective proceedings 
relating to bilateral safeguard measures. 
2. A Party shall apply a bilateral safeguard me asure only following an investigation by its 
investigating authority pursuant to the provisions of this Chapter. 
3. The investigating authority of a Party shall ex amine and ensure the existence of sufficient 
evidence that the increased imports of an originati ng good are causing serious injury or threat thereof 
to the domestic industry concerned, to ju stify the initiation of an investigation. 
4. An investigation shall, except in special circ umstances, be completed within 1 year, and in no 
case more than 18 months, following its date of initiation. 
5. Upon initiation of an investigation, the investig ating authority of a Party shall give a public 
notice of the initiation of the investigation through the official journal of that Party.  The public notice 
shall identify the originating good subject to the in vestigation and its subheading or a more detailed 
level of the Harmonized System, the period of investig ation, the date of initiation of the investigation, 
deadlines for filing statements and other documents , and the place at which documents filed during 
the investigation may be inspected. 
6. Each Party shall establish procedure to allow an interested party to have access to information 
submitted by other interested parties to the investig ating authority of that Party after submission of 
such information.  The investigating authority sh all, upon request of an interested party, provide 
timely access to the information, including docume nts, items of evidence, and non-confidential 
written summaries referred to in paragraph 7 below,  which were submitted by ot her interested parties 
during the investigation.  In particular, the inves tigating authority shall grant access to the interested 
parties to the following information related to the investigation: 
(a) production processes for the good concerned; 
(b) production costs of the good concerned and specifications of its components; 
(c) distribution costs of the good concerned; 
(d) terms and conditions of sale of the good  concerned; 
(e) selling prices of the good concerned; 
(f) description of the category of individual cu stomers, distributors, suppliers, and any 
other enterprises related to the good concerned; 
(g) data considered for the injury analysis  such as the level of sales, production, 
productivity, capacity utilization, profits a nd losses, and employment related to the 
domestic industry concerned;  and 
(h) any other information about the enterp rise related to the good concerned. 
7. Notwithstanding paragraph 6 above, each Party sh all adopt or maintain procedures for the 
treatment of confidential information as specified by that Party in accordance with its domestic laws  WT/REG198/1 
 Page 43 
 
 
 and regulations and which is provide d in the course of an investigation.  When the interested parties 
provide such information, they shall be require d to furnish non-confidential written summaries 
thereof, or if they indicate that the informa tion cannot be summarized, the reasons why a summary 
cannot be provided. 
8. During the course of each investigation, the inv estigating authority of a Party shall endeavor 
to hold a public hearing after providing reasonable notice, so that opposite views may be presented 
and rebuttal arguments offered.  Such public hearin g should allow interested parties to defend their 
interest and to question the other parties. 
9. In the investigation to determine whether incr eased imports have caused serious injury or are 
threatening to cause serious injury to a domestic indus try, the investigating authority of a Party shall 
evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation 
of that domestic industry, in particular, the ra te and amount of the increase in imports of the 
originating good, in absolute terms, the share of the domestic market taken by increased imports, and 
changes in the level of sales, production, produc tivity, capacity utilization, profits and losses, 
employment, and prices. 
10. The determination that increased imports have caused serious injury or are threatening to 
cause serious injury to a domestic industry shall not  be made unless this investigation demonstrates, 
on the basis of objective evidence, the existence of the causal link be tween increased imports of the 
originating good and serious injury or threat thereo f.  When factors other than increased imports are 
causing injury to the domestic industry at the same time, such injury shall not be attributed to 
increased imports. 
11. With regard to determination on whether increa sed imports have caused serious injury or are 
threatening to cause serious injury to a domestic indus try, the investigating authority of a Party shall 
not arbitrarily modify a negative injury determination. 
12. Upon decision to apply a bilateral safeguard m easure, the investigating authority of a Party 
shall give a public notice through the official journal of that Party.  The public notice shall identify the 
originating good subject to such measure and its  subheading or a more detailed level of the 
Harmonized System, the duration of such measure, an d the findings and reasoned conclusions reached 
on all pertinent issues of law and fact. 
13. In the public notice the investigating authority of a Party shall not disclose any confidential 
information referred to in paragraph 7 above. 
Article 56 
Definitions  
For the purposes of this Chapter: (a) the term “domestic industry” means the produ cers as a whole of the like or directly 
competitive goods operating in the Area of a Party, or those whose collective output 
of the like or directly competitive goods constitutes a major proportion of the total 
domestic production of those goods;   
(b) the term “serious injury” means a significan t overall impairment in the position of a 
domestic industry;  and WT/REG198/1 
Page 44  
 
 (c) the term “threat of serious injury” means serious injury that is clearly imminent, 
based on facts and not merely on allegati on, conjecture or remote possibility.  
CHAPTER 7:  INVESTMENT 
Section 1 - Investment
 
Article 57 
Scope And Coverage  
1. This Chapter shall apply to measures adopted  or maintained by a Party relating to: 
(a) investors of the other Party; 
(b) investments of investors of the other Party in the Area of the former Party;  and 
(c) with respect to Articles 65 and 74, all investments in the Area of the former Party. 
2. A Party has the right to perform exclusively th e economic activities set out in Annex 8 and to 
refuse to permit the establishment of  investment in such activities. 
3. This Chapter shall not apply to measures adopted or maintained by a Party to the extent that 
they are covered by Chapter 9. 
4. Nothing in this Chapter shall impose any ob ligation on either Party regarding measures 
pursuant to immigration laws and regulations. 
Note:  Nothing in this Chapter shall be cons trued to prevent a Party from providing a service 
or performing a function such as law enforcement, correctional services, income security or insurance, social security or in surance, social welfare, public education, 
public training, health, and child care, in a manner that is not inconsistent with this 
Chapter. 
Article 58 
National Treatment
 
1. Each Party shall accord to investors of the othe r Party and to their investments treatment no 
less favorable than the treatment it accords, in like circumstances, to its own investors and to their 
investments with respect to th e establishment, acquisition, e xpansion, management, conduct, 
operation, maintenance, use, enjoyment and sale or  other disposition of investments (hereinafter 
referred to in this Chapter as “investment activities”). 
2. The treatment accorded by a Party under paragr aph 1 above means, with respect to a local 
government in the case of Japan, and with respect to  a state in the case of Mexico, treatment no less 
favorable than the most favorable treatment accorded , in like circumstances, by that local government 
or state to investors, and to investments of i nvestors, of the Party of which it forms a part.  WT/REG198/1 
 Page 45 
 
 
 Article 59 
Most-Favored-Nation Treatment  
Each Party shall accord to investors of the othe r Party and to their investments, treatment no 
less favorable than the treatment it accords, in like circumstances, to investors of a non-Party and to 
their investments with respect  to investment activities. 
Note 1: Each Party shall accord to investors of  the other Party and to  their investments the 
better of the treatment required by Articles 58 and 59. 
Note 2: For greater certainty, it is confirmed by both Parties that in the application of Articles 
58 and 59 a Party: 
(a) may not impose on an investor of the other Party a requirement that a minimum level 
of equity in an enterprise in the Area of the former Party be held by its nationals;  or 
(b) may not require an investor of the other Part y, by reason of its nationality, to sell or 
otherwise dispose of an investment in the Area of the former Party. 
Note 3: Each Party shall in its Area accord to  investors of the other Party treatment no less 
favorable than the treatment which it acco rds, in like circumstances, to its own 
investors or investors of a non-Party with resp ect to access to the courts of justice and 
administrative tribunals and agencies in all degrees of jurisdiction, both in pursuit and in defense of such investor’s rights. 
Article 60 
General Treatment
 
Each Party shall accord to investments of inv estors of the other Party treatment in accordance 
with international law, including fair and e quitable treatment and full protection and security. 
Note: This Article prescribes the customary international law minimum standard of 
treatment of aliens as the minimum standa rd of treatment to be afforded to 
investments of investors of the other Party.  The concepts of “fair and equitable treatment” and “full protection and security” do not require treatment in addition to or 
beyond that which is required by the cust omary international law minimum standard 
of treatment of aliens.  A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this Article. 
Article 61 
Expropriation And Compensation
 
1. Neither Party shall expropriate or nationalize an investment of an investor of the other Party 
in its Area either directly or indirectly through measures tantamount to expropriation or 
nationalization (hereinafter referred to as “expropr iation”) except:  (a) for a public purpose;  (b) on a 
non-discriminatory basis;  (c) in accordance with due process of law and Article 60;  and (d) on 
payment of compensation pursuant to paragraphs 2 through 5 below. WT/REG198/1 
Page 46  
 
 2. Compensation shall be equivalent to the fair market value of the expropriated investment 
immediately before the expropriation occurred.  The fa ir market value shall not reflect any change in 
value occurring because the expropriatory action had become known earlier.  Valuation criteria to determine the fair market value may include d eclared tax value of tangible property.  The 
compensation shall be paid without  delay and be fully realizable. 
3. If payment is made in a freely usable currency, compensation shall include interest at a 
commercially reasonable rate for that currency from the date of expropriation until the date of actual 
payment. 
4. If a Party elects to pay in a currency other th an a freely usable currency, the compensation 
paid, converted into the currency of payment at the market rate of exchange prevailing on the date of 
payment, shall be no less than: 
(a) the fair market value on the date of expropriation, converted into a freely usable 
currency at the market rate of exchange prevailing on that date, plus 
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued 
from the date of expropriation until the actual date of payment. 
5. On payment, compensation shall be freely transferable as provided in Article 63. 
Article 62 
Protection From Strife
 
Without prejudice to Article 60 and notwithstanding Article 66, each Party shall accord to 
investors of the other Party and to their investme nts treatment no less favorable than the treatment it 
accords to its own investors or investors of a non-Pa rty and to their investments, whichever is more 
favorable to the investor of the other Party or its  investments, with resp ect to measures, such as 
restitution, indemnification, compensation or any ot her settlement, it adopts or  maintains relating to 
losses suffered by investments in its Area owing to ar med conflict, civil strife or any other similar 
event. 
Article 63 
Transfers  
1. Each Party shall allow all transfers relating to an investment in its Area of an investor of the 
other Party to be made freely and without delay.  Such transfers shall include:  
(a) the initial capital and additional amounts to maintain or increase the investment; 
(b) profits, dividends, interest, capital gains,  royalty payments, management fees, 
technical assistance fees and other fees;   
(c) proceeds from the sale or liquidation of all or any part of the investment; 
(d) payments made under a contract includi ng payments made pursuant to a loan 
agreement; 
(e) payments made in accordance with Article 61;  and  WT/REG198/1 
 Page 47 
 
 
 (f) payments arising out of the settlement of a dispute under Section 2. 
2. Each Party shall allow transfers to be made w ithout delay in a freely usable currency at the 
market rate of exchange prevailing on the date of th e transfer with respect to spot transactions in the 
currency to be transferred. 
3. Notwithstanding paragraphs 1 and 2 above, a Pa rty may delay or prevent a transfer through 
the equitable, non-discriminatory and good fa ith application of its laws relating to: 
(a) bankruptcy, insolvency or the protection of the rights of creditors; 
(b) issuing, trading or dealing in securities; 
(c) criminal or penal offenses; 
(d) reports of transfers of currency or other monetary instruments;  or 
(e) ensuring compliance with orders or ju dgments in adjudicatory proceedings. 
Article 64 
Senior Management And Boards Of Directors  
1. Neither Party may require that an enterprise of that  Party that is an investment of an investor 
of the other Party appoint to senior management positions individuals of any particular nationality. 
2. A Party may require that a majority of the board of directors, or any committee thereof, of an 
enterprise of that Party that is an investment of an  investor of the other Party, be of a particular 
nationality, or resident of the Party, provided th at the requirement does not materially impair the 
ability of the investor to exercise control over its investment. 
Article 65 
Performance Requirements  
1. Neither Party may impose or enforce any of the following requirements, or enforce any 
commitment or undertaking, in connection wi th the establishment, acquisition, expansion, 
management, conduct or operation of an investment of an investor of a Party or of a non-Party in its 
Area: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content; 
(c) to purchase, use or accord a preference to goods produced or services provided in its 
Area, or to purchase goods or services from persons in its Area; 
(d) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange in flows associated with such investment; 
(e) to restrict sales of goods or services in its Area that such investment produces or 
provides by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings; WT/REG198/1 
Page 48  
 
 (f) to transfer technology, a production process  or other proprietary knowledge to a 
person in its Area, except when the requir ement is imposed or the commitment or 
undertaking is enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition la ws or to act in a manner not inconsistent 
with multilateral agreements in respect of pr otection of intellectual property rights.  A 
measure that requires an investment to use a technology to meet generally applicable 
health, safety or environmental requirements sh all not be construed to be inconsistent 
with this paragraph.  For greater certainty, Articles 58 and 59 shall apply to the measure;  or 
(g) to act as the exclusive supplier of the goods it produces or services it provides to a 
specific region or world market. 
2. Neither Party may condition the receipt or contin ued receipt of an advantage, in connection 
with an investment in its Area of an investor of a Party or of a non-Party, on compliance with any of 
the following requirements: 
(a) to achieve a given level or pe rcentage of domestic content; 
(b) to purchase, use or accord a preference to goods  produced in its Area, or to purchase 
goods from producers in its Area; 
(c) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange infl ows associated with such investment;  or 
(d) to restrict sales of goods or services in its Area that such investment produces or 
provides by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings. 
3. Nothing in paragraph 2 above shall be constr ued to prevent a Party from conditioning the 
receipt or continued receipt of an advantage, in connection with an investment in its Area of an 
investor of a Party or of a non-Party, on compliance with a requirement to: 
(a) locate production; 
(b) provide a service; 
(c) train or employ workers; 
(d) construct or expand particular facilities;  or  
(e) carry out research and development  
in its Area. 
4. Paragraphs 1 and 2 above shall not apply to an y requirement other than the requirements set 
out in those paragraphs. 
5. Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not 
constitute a disguised restriction on internati onal trade or investment activities, nothing in 
subparagraph 1(b) or (c) or 2(a) or  (b) above shall be construed to prevent any Party from adopting or 
maintaining measures:  WT/REG198/1 
 Page 49 
 
 
 (a) necessary to secure compliance with laws and regulations that are not inconsistent 
with the provisions of this Agreement; 
(b) necessary to protect human, animal or plant life or health;  or 
(c) necessary for the conservation of living or  non-living exhaustible natural resources. 
Article 66 
Reservations And Exceptions  
1. Articles 58, 59, 64 and 65 shall not apply to: 
(a) any existing non-conforming measure that is ma intained by a Party at the federal or 
central government level, as set out in it s Schedule to Annex 6 or Annex 8;  or 
(b) any existing non-conforming measure that is maintained by: 
(i) with respect to Mexico: 
(AA) a state, for 6 months after the date of entry into force of this 
Agreement, and thereafter as to be set out by Mexico in its Schedule to Annex 6 in accordance with  paragraph 2 below;  or 
(BB) a local government;  and  
(ii) with respect to Japan: 
(AA) a prefecture, for 6 months after the date of entry into force of this 
Agreement, and thereafter as to be set  out by Japan in its Schedule to 
Annex 6 in accordance with paragraph 2 below;  or 
(BB) a local authority other than prefectures; 
(c) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraphs (a) a nd (b) above;  or 
(d) an amendment or a modification to any non-conforming measure referred to in 
subparagraphs (a) and (b) a bove provided that the amendment or modification does 
not decrease the conformity of the measu re, as it existed immediately before the 
amendment or modification, with Articles 58, 59, 64 and 65. 
2. Each Party shall set out in its Schedule to Annex 6, within 6 months of the date of entry into 
force of this Agreement, any existing non-conformi ng measure maintained by a state or a prefecture 
as referred to in subparagraphs 1( b)(i)(AA) and 1(b)(ii)(AA) above, and shall notify thereof the other 
Party by a diplomatic note. 
3. Articles 58, 59, 64 and 65 shall not apply to any m easure that a Party adopts or maintains with 
respect to sectors, subsectors or activities,  as set out in its Schedule to Annex 7. 
4. Neither Party may, under any measure adopted after the date of entry into force of this 
Agreement and covered by Annex 7,  require an investor of the other Party, by reason of its WT/REG198/1 
Page 50  
 
 nationality, to sell or otherwise dispose of an invest ment that exists at the time the measure becomes 
effective. 
5. Article 59 shall not apply to treatment accorded by a Party pursuant to agreements, or with 
respect to sectors, set out in its Schedule to Annex 9. 
6. Articles 58, 59 and 64 shall not apply to any measure adopted or maintained with respect to 
procurement by a Party or a state enterprise. 
7. The provisions of: 
(a) subparagraphs 1(a), (b) and (c), and 2(a) and (b) of Article 65 shall not apply to 
qualification requirements for goods or servi ces with respect to export promotion and 
foreign aid programs; 
(b) subparagraphs 1(b), (c), (f) and (g), and 2( a) and (b) of Article 65 shall not apply to 
procurement by a Party or a state enterprise;  and 
(c) subparagraphs 2(a) and (b) of Article 65 sh all not apply to requirements imposed by 
an importing Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 
Article 67 
Notification
 
To the maximum extent possible, each Party sh all notify the other Party of any new measure 
that the former Party considers might materially  affect the implementation and operation of this 
Chapter and of Annexes 6 to 9. 
Article 68 
Special Formalities And Information Requirements  
1. Nothing in Article 58 shall be construed to pr event a Party from adopting or maintaining a 
measure that prescribes special formalities in conn ection with the establishment of investments by 
investors of the other Party, such as the compliance with registration requirements or that investments 
be legally constituted under the laws  or regulations of the Party, provided that such formalities do not 
materially impair the protection afforded by a Party to investors of the other Party and investments of 
investors of the other Party pursuant to this Chapter. 
2. Notwithstanding Article 58 or 59, a Party may requi re an investor of the other Party, or its 
investment in its Area, to provide routine info rmation concerning that investment solely for 
information or statistical purposes.  The Party shall protect such business information that is 
confidential from any disclosure that would prejudi ce the competitive position of the investor or the 
investment.  Nothing in this paragraph shall be c onstrued to prevent a Party from otherwise obtaining 
or disclosing information in connection with the equitable and good faith application of its law.  WT/REG198/1 
 Page 51 
 
 
 Article 69 
Relation To Other Chapters  
In the event of any inconsistency between this Chapter and another Chapter, the other Chapter 
shall prevail to the extent of the inconsistency. 
Article 70 
Denial Of Benefits  
1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such Party and to an  investment of such investor if investors of a non-Party own or 
control the enterprise and the denying Party: 
(a) does not maintain diplomatic relations with the non-Party;  or  
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions 
with the enterprise or that would be violated  or circumvented if the benefits of this 
Chapter were accorded to the ente rprise or to its investments. 
2. Subject to prior notification and consultation, a Pa rty may deny the benefits of this Chapter to 
an investor of the other Party that is an enterprise of  such Party and to investments of such investor if 
investors of a non-Party own or control the enterp rise and the enterprise has no substantial business 
activities in the Area of the Party under w hose law it is constituted or organized.  
Article 71 
Investment Support  
1. An issuer may provide to investors of any Party, investment support in connection with 
projects or activities in the Area of the other Party.  Investors and investments of investors of a Party 
in the Area of the other Party may enter into agre ements for investment support with the issuer.  The 
issuer will undertake investment support only in r espect of projects and activities allowed by this 
Agreement. 
2. If the issuer makes a payment to any person or  entity, or exercises its rights as a creditor or 
subrogee, in connection with any investment support, the other Party shall recognize the transfer to, or 
acquisition by, the issuer of any cash, accounts, credits,  instruments or other assets in connection with 
such payment or the exercise of such rights, as well as the succession of the issuer to any right, title, 
claim, privilege or cause of action, existing, or which may arise, in connection therewith. 
3. With respect to any interests transferred to or acquired by the issuer or any interests to which 
the issuer succeeds, under this Article, in its own ri ght or otherwise by contract or operation of law, 
the issuer shall assert no greater rights than those of the person or entity from whom such interests 
were received. 
4. To the extent that the laws of a Party partially  or wholly restrict ownership or acquisition by, 
or transfer or succession to, the issuer of any inte rests as described in paragraph 3 above, the Party 
shall permit the issuer to make appr opriate arrangements to transfer such assets, interests or rights to a 
person or entity permitted to own th em under the laws of that Party. WT/REG198/1 
Page 52  
 
 Article 72 
Temporary Safeguard Measures
 
1. A Party may adopt or maintain measures not c onforming with its obligations under Article 58 
relating to cross-border capital transactions and Article 63: 
(a) in the event of serious balance-of-payment s and external financial difficulties or 
imminent threat thereof;  or 
(b) in cases where, in exceptional circumstances,  movements of capital cause or threaten 
to cause serious difficulties for macroeconom ic management, in particular, monetary 
and exchange rate policies. 
2. Measures referred to in paragraph 1 above: 
(a) shall be consistent with the Articles of Agreement of the International Monetary 
Fund, as may be amended;   
(b) shall not exceed those necessary to deal with  the circumstances set out in paragraph 1 
above;   
(c) shall be temporary and shall be elim inated as soon as conditions permit;  and 
(d) shall be promptly notified to the other Party.  
3. Nothing in this Chapter shall be regarded as altering the rights enjoyed and obligations 
undertaken by a Party as a party to the Articles of Agreement of the International Monetary Fund, as may be amended. 
Article 73 
Intellectual Property Rights
 
1. Nothing in this Chapter shall be construed so as to derogate from the rights and obligations 
under multilateral agreements in respect of protecti on of intellectual property rights to which the 
Parties are parties.  
2. Nothing in this Chapter shall be construed so as to oblige either Party to extend to investors of 
the other Party and their investments treatment accorded to investors of a non-Party and their 
investments by virtue of multilateral agreements in respect of protection of intellectual property 
rights, to which the former Party is a party. 
Article 74 
Environmental Measures  
The Parties recognize that it is inappropriate to encourage investment by relaxing domestic 
health, safety or environmental measures.  Acco rdingly, a Party should not waive or otherwise 
derogate from, or offer to waive or otherwise dero gate from, such measures as an encouragement for 
the establishment, acquisition, expansion or retention in  its Area of an investment of an investor.  If a 
Party considers that the other Party has offered su ch an encouragement, it may request consultations 
with the other Party and the Parties shall consult with a view to avoiding any such encouragement.  WT/REG198/1 
 Page 53 
 
 
 Section 2 - Settlement Of Investment Disputes Between A Party  
And An Investor Of The Other Party  
Article 75 
Purpose  
Without prejudice to the rights and obligations of the Parties under Chapter 15, this Section 
establishes a mechanism for the settlement of inve stment disputes that assures both equal treatment 
among investors of the Parties and due process before an impartial tribunal. 
Article 76 
Claim By An Investor  
1. An investor of a Party: 
(a) on its own behalf, may submit to arbitration under this Section a claim that the other 
Party has breached an obligation under Sec tion 1 and that the investor has incurred 
loss or damage by reason of, or arising out of, that breach;  and  
(b) on behalf of an enterprise of the other Part y that is a legal person that the investor 
owns or controls directly or indirectly, may submit to arbitration under this Section a 
claim that the other Party has breached an obligation under Section 1 and that the 
enterprise has incurred loss or damages by reason of, or arising out of, that breach. 
2. An investment may not make a claim under this Section. 
Article 77 
Consultation And Negotiation  
The disputing parties should first attempt to se ttle a claim through consultation or negotiation. 
Article 78 
Written Request  
1. The disputing investor shall submit to the dis puting Party a written request for consultations 
with a view to settling the claim amicably at l east 180 days before the claim may be submitted to 
arbitration.  Such a request shall specify: 
(a) the name and address of the disputing invest or and, where a claim is submitted by an 
investor of a Party on behalf of an enterprise, the name and address of the enterprise; 
(b) the provisions of this Agreement alleged to have been breached and any other 
relevant provisions; 
(c) the issues and the factual and legal basi s for the claim, including specific measures 
adopted by the disputing Party;  and 
(d) the relief sought and the approximate amount of damages claimed. WT/REG198/1 
Page 54  
 
 2. The disputing investor may not submit its writte n request referred to in paragraph 1 above 
before the events giving rise to a claim have occurred. 
Article 79 
Submission Of A Claim To Arbitration
 
1. Subject to the compliance of the requireme nts established under Article 78 the disputing 
investor may submit the claim to: 
(a) arbitration under the ICSID Convention pr ovided that both the disputing Party and 
the Party of the investor are parties to the ICSID Convention; 
(b) arbitration under the ICSID Additional Fac ility Rules, as may be amended, provided 
that either the disputing Party or the Party of the investor, but not both, is a party to 
the ICSID Convention; 
(c) arbitration under the UNCITRAL Arbitration Rules;  or 
(d) if agreed by the disputing parties, any arb itration in accordance with other arbitration 
rules. 
2. The applicable arbitration rules shall govern th e arbitration under this Section except to the 
extent modified by this Section. 
Article 80 
Consent To Arbitration  
1. Each Party consents to the submission of a claim to arbitration in accordance with the 
procedures set out in this Section. 
2. The consent given by paragraph 1 above and the submission by a disputing investor of a 
claim to arbitration shall satisfy the requirement of: 
(a) Chapter II of the ICSID Convention (Jurisdi ction of the Centre) and the Additional 
Facility Rules for written consent of the parties;  and 
(b) Article II of the New York Convention for an agreement in writing. 
Article 81 
Conditions And Limitations On Consent Of Each Party  
1. No claim may be submitted to arb itration under this Section if more than 3 years have elapsed 
from the date on which the investor (for claims broug ht under subparagraph 1 (a) of Article 76) or the 
enterprise (for claims brought under subparagraph 1(b) of Article 76) first acquired, or should have 
first acquired knowledge of the breach alleged under Article 76 and knowledge that the investor (for 
claims brought under subparagraph 1(a) of Article  76), or the enterprise (for claims brought under 
subparagraph 1(b) of Article 76)  had incurred loss or damage. 
2. No claim may be submitted to arb itration under this Section unless:  WT/REG198/1 
 Page 55 
 
 
 (a) (i) for claims submitted to arbitration under subparagraph 1(a) of Article 76, the 
investor consents in writing to arbitr ation in accordance with the procedures 
set out in this Section; 
(ii) for claims submitted to arbitration unde r subparagraph 1(b) of Article 76, the 
investor and the enterprise agree upon the submission of a claim on behalf of 
the enterprise by the investor with r espect to the claim and both of them 
consent in writing to arbitration in acco rdance with the procedures set out in 
this Section; 
(b) for claims submitted to arbitration under subpa ragraph 1(a) of Article 76, the investor 
and, where the claim is for loss or damage to  an interest in an enterprise of the other 
Party that is a legal person that the investor owns or controls directly or indirectly, the 
enterprise, waive in writing their right to initiate or continue before any 
administrative tribunal or court under the la w of either Party, or other dispute 
settlement procedures, any proceedings w ith respect to any measure alleged to 
constitute a breach referred to in  paragraph 1 of Article 76; 
(c) for claims submitted to arbitration under s ubparagraph 1(b) of Article 76, both the 
investor and the enterprise waive in writing their right to initiate or continue before 
any administrative tribunal or court under the law of either Party, or other dispute 
settlement procedures, any proceedings w ith respect to any measure alleged to 
constitute a breach referred to in paragraph 1 of Article 76;  and 
(d) where the investor (for claims brought under subparagraph 1(a) of Article 76) or the 
enterprise (for claims brought under subpara graph 1(b) of Article 76) has initiated 
any proceedings before any administrative tribunal or court referred to in subparagraphs (b) and (c) a bove, those proceedings are withdrawn in accordance with 
the laws of that Party. 
3. Notwithstanding subparagraphs (b) and (c) a bove, the investor (for claims submitted to 
arbitration under subparagraph 1(a) of Article 76) and both the investor and the enterprise (for claims 
submitted to arbitration under subpara graph 1(b) of Article 76), may ini tiate or continue an action that 
seeks interim injunctive relief or other extraordin ary relief that does not involve the payment of 
damages before an administrative tribunal or court under the law of the disputing Party. 
4. With respect to the submission of a claim to arbitration: 
(a) an investor of a Party may not allege that  the other Party has breached an obligation 
under Section 1, both in an arbitration under this Section and in proceedings before an 
administrative tribunal or court under the law of either Party;  and 
(b) where an enterprise of a Party that is a legal person that an investor of the other Party 
owns or controls directly or indirectly a lleges in proceedings before an administrative 
tribunal or court under the law of either Party that such a Party has breached an 
obligation under Section 1, the investor ma y not allege the breach in an arbitration 
under this Section. WT/REG198/1 
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 Article 82 
Constitution Of A Tribunal
 
1. Except in respect of a Tribunal established under Article 83, and unless the disputing parties 
otherwise agree, the Tribunal shall comprise 3 arbitr ators, one arbitrator appointed by each of the 
disputing parties and the third, who shall be the pr esiding arbitrator, appointed by agreement of the 
disputing parties. 
2. The Secretary-General shall serve as appointin g authority for an arbitration under this 
Section. 
3. If the Tribunal, other than the Tribunal estab lished under Article 83, has not been constituted 
within 90 days from the date on which a claim was su bmitted to arbitration, the Secretary-General, on 
the request of either disputing party,  shall appoint, in his discretion, the arbitrator or arbitrators not yet 
appointed except that the presiding arbitrator sh all be appointed in accordance with paragraph 4 
below. 
4. The Secretary-General shall appoint the presiding arbitrator from the roster of presiding 
arbitrators referred to in paragraph 5 below or, if not available, from the ICSID Panel of Arbitrators, 
provided that in both cases the presiding arbitrator sha ll not be a national of the disputing Party or a 
national of the Party of the disputing investor. 
5. The Parties may establish, and thereafter main tain, a roster of 20 presiding arbitrators 
experienced in international law and investment matt ers.  The roster members shall be appointed by 
agreement of the Parties and without regard to nationality.  
Article 83 
Consolidation Of Multiple Claims  
1. When a disputing party considers that two or  more claims submitted to arbitration under 
Article 76 have a question of law or fact in co mmon, the disputing party may seek a consolidation 
order in accordance with the terms of paragraphs 2 through 9 below.  
2. A disputing party that seeks a consolidation order under this Article shall deliver, in writing, a 
request to the Secretary-General to establish a Tribunal under this Article.  The request shall: 
(a) specify the nature of the order sought and the grounds on which the order is sought;  
and  
(b) be accompanied by a request for arbitration made under paragraph 1 of Article 36 of 
the ICSID Convention or a notice of arbitr ation submitted under Ar ticle 2 of Schedule 
C of the ICSID Additional Facility Rules, as may be amended. 
3. Within 60 days of receipt of the request, the Secretary-General shall establish a Tribunal 
comprising 3 arbitrators.  One arbitrator shall be a national of the disputing Party, the second 
arbitrator shall be a national of the Party of the disputing investor, and the presiding arbitrator shall not be a national of any of the Parties. 
4. A Tribunal established under this Article sha ll be established under the ICSID Convention or 
the ICSID Additional Facility Rules as may be amended, as appropriate , and shall conduct its 
proceedings in accordance with the provisions th ereof, except as modified by this Section.  WT/REG198/1 
 Page 57 
 
 
 5. Any disputing investor that has submitted a cl aim to arbitration and considers that such a 
claim raises questions of law or fact which are common to those upon which the consolidation under 
paragraph 2 above has been requested, but has not been named in a request made under paragraph 2 
above, may request to the Tribunal established under this  Article to consider th e consolidation of his 
claim.  The request shall comply with the requirements established in  paragraph 2 above.  
6. The disputing investor referred to in paragraph 5 above shall deliver to the disputing Party or 
disputing investors with respect to whom the order is sought, a copy of the request made under paragraph 5 above.  
7. On application of a disputing party, a Tri bunal established under this Article may order the 
adjourning of the proceedings related to clai ms referred to in paragraphs 1 and 5 above. 
8. A Tribunal established under this Article may, in the interests of fair and efficient resolution 
of the dispute, and after hearing the disputing parties, by order: 
(a) assume jurisdiction over, and hear and determ ine together, all or part of the claims 
referred to in paragraphs  1 and 5 above;  or 
(b) assume jurisdiction over, and hear and determ ine one or more of the claims referred 
to in paragraphs 1 and 5 above, the determ ination of which it believes would assist in 
the resolution of the others. 
9. A Tribunal established under Article 79 shall not have  jurisdiction to decide a claim, or a part 
of a claim, over which a Tribunal established under this Article has assumed jurisdiction in the terms 
of paragraph 8 above. 
Article 84 
Governing Law
 
1. A Tribunal established under this Section shall decide the issues in di spute in accordance with 
this Agreement and applicable rules of international law. 
2. An interpretation of a provision of this Agre ement adopted by the Joint Committee shall be 
binding on a Tribunal established under this Secti on.  Such interpretation shall be made publicly 
available through the means that each Party considers appropriate. 
Article 85 
Notice  
A disputing Party shall deliver to the other Party: (a) written notice of a claim that has been submitted to arbitration no later than 30 days 
after the date on which the claim was submitted;  and 
(b) copies of all pleadings filed in the arbitration. WT/REG198/1 
Page 58  
 
 Article 86 
Participation By A Party
 
On written notice to the disputing parties, the Party other than the disputing Party may make 
submissions to a Tribunal on a question of  interpretation of this Agreement. 
Article 87 
Documents  
1. The Party other than the disputing Party shall be  entitled to receive from the disputing Party, 
at the cost of the requesting Party a copy of: 
(a) the evidence that has been tendered to the Tribunal;  and 
(b) the written argument of the disputing parties. 
2. The Party receiving information pursuant to para graph 1 above shall treat the information as 
if it were a disputing Party. 
Article 88 
Place Of Arbitration  
Unless the disputing parties agree otherwise, a Tribunal shall hold an arbitration in a country 
that is a party to the New York Convention. 
Article 89 
Interpretation Of Annexes  
1. Where a disputing Party asserts as a defense that the measure alleged to be a breach is within 
the scope of a reservation or exception set out in A nnex 6, Annex 7, Annex 8 or Annex 9, on request 
of the disputing Party, the Tribunal shall request the Joint Committee to adopt an interpretation on the 
issue.  The Joint Committee, within 60 days of de livery of the request, shall adopt an interpretation 
and submit in writing its interpretation to the Tribunal. 
2. Further to Article 84, an interpretation adopt ed and submitted under pa ragraph 1 above shall 
be binding on the Tribunal.  If the Joint Committee fails to submit an interpretation within 60 days, 
the Tribunal shall decide the issue. 
Article 90 
Expert Reports  
Without prejudice to the appointment of other kinds of experts where authorized by the 
applicable arbitration rules, a Tribunal, at the request of a disputing party or, unless the disputing 
parties disapprove, on its own initiative, may appoi nt one or more experts in the fields of 
environmental, health, safety or other scientific ma tters to report to it in writing on any factual issue 
concerning matters of their expertise raised by a disp uting party in a proceeding, subject to such terms 
and conditions as the disputing parties may agree.  WT/REG198/1 
 Page 59 
 
 
 Article 91 
Interim Measures Of Protection  
A Tribunal may order an interim measure of pr otection to preserve the rights of a disputing 
party, or to facilitate the conduct of arbitral pro ceedings, including an order to preserve evidence in 
the possession or control of a disputing party.  A Tribunal may not order attachment or enjoin the 
application of the measure alleged to constitute a breach referred to  in paragraph 1 of Article 76. 
Article 92 
Final Award  
1. Where a Tribunal makes a final award against a disputing Party, the Tribunal may award, 
separately or in combination, only: 
(a) monetary damages and any a pplicable interest;  or 
(b) restitution of property, in which case the award shall provide that the disputing Party 
may pay monetary damages and any appli cable interest in lieu of restitution. 
A Tribunal may also award costs in accordance with the applicable arbitration rules. 
2. Subject to paragraph 1 above, where a claim is  made under subparagraph 1 (b) of Article 76: 
(a) an award of monetary damages and any applicable interest shall provide that the sum 
be paid to the enterprise;  and 
(b) an award of restitution of property shall provide that restitution be made to the 
enterprise. 
3. A Tribunal may not order a Party to pay punitive damages. 
Article 93 
Finality And Enforcement Of An Award  
1. Any arbitral award rendered pursuant to Article 92 shall be final, and binding on the disputing 
parties in respect of the particular case.  
2. Subject to the applicable revision, annulment or  set aside procedures, a disputing party shall 
abide by and comply with an award without delay. 
3. If a disputing Party fails to abide by or comply  with a final award, the Party whose investor 
was a party to the arbitration may have recourse to  the dispute settlement procedure under Chapter 15.  
In this event, the requesting Party may seek: 
(a) a determination that the failure to abide by or comply with the final award is 
inconsistent with the obligati ons of this Agreement;  and 
(b) a recommendation that the Party abide by  or comply with the final award.  WT/REG198/1 
Page 60  
 
 Article 94 
General
 
1. A claim is submitted to arbitration under this Section when: 
(a) the request for arbitration under paragraph (1) of Article 36 of the ICSID Convention 
has been received by the Secretary-General; 
(b) the notice of arbitration under Article 2 of Schedule C of the ICSID Additional 
Facility Rules, as may be amended, has been received by the Secretary-General;  or 
(c) the notice of arbitration given under the UNC ITRAL Arbitration Rules is received by 
the disputing Party. 
The disputing parties shall otherwise agree in relation to subparagraph 1 (d) of Article 79. 
2. Delivery of notice and other documents on a Party shall be made: 
(a) in the case of Mexico:  through the Director ate General of Foreign Investment of the 
Ministry of Economy;  and 
(b) in the case of Japan:  through the Ministry of Foreign Affairs. 
3. In  an arbitration under this Section, a Party sh all not assert, as a defense, counterclaim, right 
of setoff or otherwise, that the disputing investor has received or will receive, pursuant to an insurance 
or guarantee contract, indemnification or other comp ensation for all or part of its alleged damages. 
4. Either disputing party may make available to  the public in a timely manner all documents, 
including an award, submitted to, or issued by, a Tribunal established under this Section, subject to 
redaction of: 
(a) confidential business information; 
(b) information which is privileged or othe rwise protected from disclosure under the 
applicable law of either Party;  and 
(c) information which the Party must withhold pursuant to the relevant arbitral rules, as 
applied. 
Note: For greater certainty, it is confirmed by both Parties that a Party may share with 
officials of its central or local government in  the case of Japan, and its federal or state 
government in the case of Mexico, all rele vant documents in the course of dispute 
settlement under this Section, includi ng confidential information and that the 
disputing parties may disclose to other pe rsons in connection with the arbitral 
proceedings the documents submitted to, or issued by, a Tribunal established under this Section, as they consider necessary fo r the preparation of their cases;  provided 
that they shall ensure that those persons protect the confidential information in such 
documents.  WT/REG198/1 
 Page 61 
 
 
 Article 95 
Exceptions From Dispute Settlement Procedure  
1. Without prejudice to the applicability or non-applicability of the dispute settlement provisions 
of this Section or of Chapter 15 to other actions ta ken by a Party pursuant to Article 169, a decision by 
a Party to prohibit or restrict the acquisition of an investment in its Area by an investor of the other 
Party, or its investment, pursuant to that Artic le shall not be subject to such provisions.  
2. In the case of Mexico, the dispute settlement provisions of this Section and of Chapter 15 
shall not apply to a decision by the National Co mmission on Foreign Investment (“Comisión Nacional 
de Inversiones Extranjeras”) following a review pur suant to Annex 6, reservation 3 set out in the 
Schedule of Mexico, with respect to whether or not to permit an acquisition that is subject to review. 
Section 3 - Definitions  
Article 96 
Definitions  
For the purposes of this Chapter: (a) the term “disputing investor” means an inv estor that makes a claim under Section 2; 
(b) the term “disputing parties” means the dis puting investor and the disputing Party; 
(c) the term “disputing party” means the dis puting investor or the disputing Party; 
(d) the term “disputing Party” means a Part y against which a claim is made under 
Section 2; 
(e) the term “equity or debt securities” includes voting and non-voting shares, bonds, 
convertible debentures, st ock options and warrants; 
(f) the term “freely usable currency” means any currency designated as such by the 
International Monetary Fund from time to time; 
(g) the term “ICSID” means the Internationa l Centre for Settlement of Investment 
Disputes; 
(h) the term “ICSID Convention” means the C onvention on the Settlement of Investment 
Disputes between States and Nationals of ot her States done at Wa shington, March 18, 
1965, as may be amended; 
(i) the term “investment” means: 
(AA) an enterprise; (BB) an equity security of an enterprise; (CC) a debt security of an enterprise: 
(aa) where the enterprise is an affiliate of the investor, or WT/REG198/1 
Page 62  
 
 (bb) where the original maturity of the debt security is at least 3 years, 
but does not include a debt security, regardless of original maturity, of a Party 
or a state enterprise; 
(DD) a loan to an enterprise: 
(aa) where the enterprise is an affiliate of the investor, or 
(bb) where the original maturity of  the loan is at least 3 years, 
but does not include a loan, regardless of original maturity, to a Party or a 
state enterprise;   
(EE) an interest in an enterprise that entitl es the owner to share in income or profits 
of the enterprise; 
(FF) an interest in an enterprise that entitl es the owner to share in the assets of that 
enterprise on dissolution, other than a debt security or a loan excluded from 
subparagraph (CC) or (DD) above; 
(GG) real estate or other property, tangibl e or intangible, and any related property 
rights such as lease, liens and pledges, acquired in the expectation or used for 
the purpose of economic benefit or other business purposes;  and 
(HH) interests arising from the commitment of capital or other resources in the 
Area of a Party to economic activity in such Area, such as under: 
(aa) contracts involving the presence of an investor’s property in the Area 
of the Party, including turnkey or construction contracts, or concessions, or 
(bb) contracts where remunerati on depends substantially on the 
production, revenues or profits of an enterprise; 
but investment does not mean, 
(II) claims to money that arise solely from: 
(aa) commercial contracts for the sale of goods or services by a national or 
enterprise in the Area of a Party to  an enterprise in the Area of the 
other Party, or 
(bb) the extension of credit in conn ection with a commercial transaction, 
such as trade financing, other than  a loan covered by subparagraph 
(DD) above;  or 
(JJ) any other claims to money, 
that do not involve the kinds of interests set out in subparagraphs (AA) through (HH) 
above;  WT/REG198/1 
 Page 63 
 
 
 (j) the term “investment of an investor of a Party” means an investment owned or 
controlled directly or indirectly by an investor of such Party; 
(k) the term “investor of a Party” means a Part y or state enterprise thereof, or a national 
or an enterprise of such Party, that seeks to make, is making or has made an 
investment; 
(l) the term “investment support” means any debt or equity investment, any investment 
guaranty and any investment insurance or reinsurance provided by the issuer in 
connection with projects or activities in the Area of a Party; 
(m) the term “issuer” means a designated agency  of a Party, or any successor agency, and 
any agent of either, which provides investment support, but does not refer to the 
Government of any of the Parties; 
(n) the term “New York Convention” mean s the Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards, done at New York, June 10, 1958, as may be amended; 
(o) the term “Secretary-General” means the Secretary-General of ICSID; 
(p) the term “transfers” means transfers and international payments;   
(q) the term “Tribunal” means an arbitration tr ibunal established under Article 79 or 83;  
and 
(r) the term “UNCITRAL Arbitration Rules” me ans the arbitration rules of the United 
Nations Commission on International Trade Law, approved by the United Nations 
General Assembly on December 15, 1976, as may be amended. 
CHAPTER 8:  CROSS-BORDER TRADE IN SERVICES 
Article 97 
Scope And Coverage
 
1. This Chapter shall apply to measures adopted or  maintained by a Party affecting cross-border 
trade in services by service suppliers of the other Party, including measures respecting: 
(a) the supply of a service; 
Note: The measures respecting the supply of a service include those respecting the provision 
of any financial security as a condition for the supply of a service. 
(b) the purchase or use of, or payment for, a service; 
(c) the access to services offered to the public generally and the use of them, in 
connection with the supply of a service;  and  
(d) the presence in its Area of a service supplier of the other Party.  
2. This Chapter shall not apply to: WT/REG198/1 
Page 64  
 
 (a) financial services, as defined in Chapter 9; 
(b) cabotage in maritime transport services , including navigation in inland waters; 
(c) with respect to air transport services, me asures affecting traffic rights, however 
granted;  or measures affecting services directly related to the exercise of traffic rights, other than measures affecting: 
(i) aircraft repair and maintenance services; 
(ii) the selling and marketing of air transport services;  and 
(iii) computer reservation system (CRS) services; 
Note: The term “traffic rights” means the rights for scheduled and non-scheduled 
services to operate and/or to carry p assengers, cargo and mail for remuneration 
or hire from, to, within, or over a Party, including points to be served, routes to 
be operated, types of traffic to be carried , capacity to be provided, tariffs to be 
charged and their conditions, and criteria for designation of air lines, including 
such criteria as number, ownership, and control. 
(d) procurement by a Party or a state enterprise;   
(e) subsidies provided by a Party or a state enterprise thereof, including grants, 
government-supported loans, guarantees and insurance;   
(f) measures pursuant to immigrati on laws and regulations;   
(g) services supplied in the exercise of governmental authority;  and  
Note: For the purposes of this Chapter,  services supplied in the exercise of 
governmental authority means any service which is supplied neither on a 
commercial basis nor in competition w ith one or more service suppliers. 
(h) measures of a Party with respect to a nati onal of the other Party seeking access to its 
employment market, or employed on a permanent basis in that Party. 
Article 98 
National Treatment
 
1. Each Party shall accord to services and service suppliers of the other Party treatment no less 
favorable than that it accords, in like circumst ances, to its own services and service suppliers. 
Note: Nothing in this Article shall be constr ued to require either Party to compensate for 
any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers. 
2. The treatment accorded by a Party under paragr aph 1 above means, with respect to a local 
government in the case of Japan, and with respect to  a state in the case of Mexico, treatment no less 
favorable than the most favorable treatment accorded , in like circumstances, by that local government 
or state to services and service suppliers of the Party of which it forms a part.  WT/REG198/1 
 Page 65 
 
 
 Article 99 
Most-Favored-Nation Treatment  
Each Party shall accord to services and service suppliers of the other Party treatment no less 
favorable than that it accords, in like circumstan ces, to services and service suppliers of any non-
Party. 
Note: Each Party shall accord to services and ser vice suppliers of the other Party the better 
of the treatment required by Articles 98 and 99. 
Article 100 
Local Presence  
Neither Party shall require a service supplier of  the other Party to establish or maintain a 
representative office or any form of enterprise, or to be resident, in its Area as a condition for the 
cross-border supply of a service. 
Article 101 
Reservations  
1. Articles 98, 99 and 100 shall not apply to:  
(a) any existing non-conforming measure that is ma intained by a Party at the federal or 
central government level, as set out in its Schedule to Annex 6; 
(b) any existing non-conforming measure that is maintained by:  
(i) with respect to Mexico: 
(AA) a state, for 6 months after the date of entry into force of this 
Agreement, and thereafter as to be set out by Mexico in its Schedule 
to Annex 6 in accordance with  paragraph 2 below;  or 
(BB) a local government;  and 
(ii) with respect to Japan: 
(AA) a prefecture, for 6 months after the date of entry into force of this 
Agreement, and thereafter as to be set  out by Japan in its Schedule to 
Annex 6 in accordance with paragraph 2 below;  or 
(BB) a local authority other than prefectures;   
(c) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraphs (a) a nd (b) above;  or 
(d) an amendment or a modification to any non-conforming measure referred to in 
subparagraphs (a) and (b) a bove provided that the amendment or modification does 
not decrease the conformity of the measu re, as it existed immediately before the 
amendment or modification, with Articles 98, 99 and 100. WT/REG198/1 
Page 66  
 
 2. Each Party shall set out in its Schedule to Annex 6, within 6 months of the date of entry into 
force of this Agreement, any existing non-confor ming measure maintained by a state or prefecture 
referred to in subparagraphs 1(b )(i)(AA) and 1(b)(ii)(AA) above, and shall notify thereof the other 
Party by a diplomatic note. 
3. Articles 98, 99 and 100 shall not apply to any measure that a Party adopts or maintains with 
respect to sectors, subsectors or activities,  as set out in its Schedule to Annex 7. 
Article 102 
Notification
 
To the maximum extent possible, each Party sh all notify the other Party of any new measure 
that the Party considers might materially affect the implementation and opera tion of this Chapter and 
of Annexes 6 and 7. 
Article 103 
Sub-Committee On Cross-Border Trade In Services  
1. For the purposes of the effective implementation and operation of this Article, a Sub-
Committee on Cross-Border Trade in Services (hereinafter referred to in this Article as “the Sub-
Committee”) shall be established pursuant to Article 165.  
2. The functions of the Sub-Committee shall be: 
(a) reviewing the implementation a nd operation of this Chapter; 
(b) discussing any issues related to this Chapter;   
(c) reporting the findings of the Sub-Comm ittee and making recommendations to the 
Joint Committee;  and 
(d) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
Article 104 
Licensing And Certification  
1. With a view to ensuring that any measure adopted or maintained by a Party relating to the 
licensing, certification, or technical standards of service suppliers of the other Party does not 
constitute an unnecessary barrier to cross-border trade in services, each Party shall endeavor to ensure 
that such measure: 
(a) is based on objective and transparent criter ia, such as competence and the ability to 
supply the services; 
(b) is not more burdensome than necessary to ensure the quality of the services;  and 
(c) does not constitute a disguised restriction on the cross-border supply of the services.  WT/REG198/1 
 Page 67 
 
 
 2. Where a Party recognizes, unilaterally or by agreement, education, experience, licenses or 
certifications obtained in a non-Party, nothing in Artic le 99 shall be construed to require the Party to 
accord such recognition to education, experience, lic enses or certifications obtained in the other Party. 
Article 105 
Denial Of Benefits  
1. A Party may deny the benefits of this Chapte r to a service supplier of the other Party where 
the Party establishes that the service is being supplied by an enterprise that is owned or controlled by 
persons of a non-Party, and that the denying Party: 
(a) does not maintain diplomatic relations with the non-Party;  or 
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions 
with the enterprise or that would be violated  or circumvented if the benefits of this 
Chapter were accorded to the enterprise. 
Note: An enterprise is “owned” by persons of  a non-Party if more than 50 percent of the 
equity interests in it is beneficially owned by  persons of that non-Pa rty.  An enterprise 
is “controlled” by persons of a non-Party if  such persons have the power to name a 
majority of its directors or otherwise to legally direct its actions. 
2. Subject to prior notification and consultation, a Pa rty may deny the benefits of this Chapter to 
a service supplier of the other Party where the Party establishes that the service is being supplied by 
an enterprise that is owned or controlled by persons of a non-Party and that has no substantial 
business activities in the Area of that other Party.   
Article 106 
Definitions  
For the purposes of this Chapter: (a) the term “cross-border trade in services” means the supply of a service: 
(i) from the Area of a Party into the Area of the other Party; 
(ii) in the Area of a Party by a person of that Party to a person of the other Party;  
or 
(iii) by a national of a Party in the Area of the other Party; 
but does not include the supply of a service by an investment of an investor of a 
Party, as defined in Article 96 in the Area of the other Party; 
(b) the term “measures by a Party” means measures taken by: 
(i) federal or central government, state, or prefecture or any other local 
authority;  and 
(ii) non-governmental bodies in the exercise of powers delegate d by federal or 
central government, state, or prefecture or any other local authority; WT/REG198/1 
Page 68  
 
 (c) the term “service supplier of a Party” means a person of a Party that seeks to supply 
or supplies a service;  and 
(d) the term “supply of a service” includes the production, distribution, marketing, sale 
and delivery of a service. 
CHAPTER 9:  FINANCIAL SERVICES 
Article 107 
Scope And Coverage
 
1. This Chapter shall apply to measures adopted  or maintained by a Party affecting: 
(a) cross-border trade in financial services; 
(b) financial institutions of the other Party;  and 
(c) investors of the other Party, and investments of such investors, in financial 
institutions in the Party. 
2. This Chapter shall not apply to measures pur suant to immigration laws and regulations. 
3. Nothing in this Chapter shall be construed to  prevent a Party, including its public entities, 
from exclusively conducting or providing in its Area: 
(a) activities or services forming part of a public retirement plan or statutory system of 
social security;  or 
(b) activities or services for the account or with  the guarantee or using the financial 
resources of the Party, incl uding its public entities. 
Article 108 
Commitments Under International Agreements  
The Parties shall be bound by the terms and c onditions that each Party is committed to under 
the Organisation for Economic Cooperation and Deve lopment Code of Liberalisation of Capital 
Movements, as may be amended, and the GATS,  including the Understa nding on Commitments in 
Financial Services, and under othe r international agreements to which both Parties are parties. 
Note: Nothing in this Chapter shall be co nstrued to affect the terms and conditions 
committed to by either Party under the respective agreements referred to in this 
Article. 
Article 109 
Non-Application Of Chapter 15  
The dispute settlement procedure provided for in Ch apter 15 shall not apply to this Chapter.    WT/REG198/1 
 Page 69 
 
 
 Article 110 
Exceptions  
Notwithstanding the provisions of this Chapter, Chapter 7 and Chapter 8, a Party shall not be 
prevented from adopting or maintaining measures fo r prudential reasons with respect to financial 
services, including for the protection of investor s, depositors, policy holde rs, policy claimants or 
persons to whom a fiduciary duty is owed by a fina ncial institution or a cross-border financial service 
supplier, or to ensure the soundness, integrit y and stability of a Party’s financial system. 
Article 111 
Relation To Other Chapters  
The provisions of Chapters 7 and 8 shall not ap ply to measures referred to in paragraph 1 of 
Article 107. 
Article 112 
Definitions  
For the purposes of this Chapter: (a) the term “cross-border financial service supp lier” means a person of a Party that is 
engaged in the business of supplying financial services within the Area of the Party 
and that seeks to supply or supplies financial services through the cross-border supply of such services; 
(b) the term “cross-border trade in financial services” means the supply of a financial 
service: 
(i) from the Area of a Party into the Area of the other Party; 
(ii) in the Area of a Party by a person of that Party to a person of the other Party;  
or 
(iii) by a national of a Party in the Area of the other Party; 
but does not include the supply of a service by an investment of an investor of a 
Party, in the Area of that other Party; 
(c) the term “financial institution” means any en terprise that is authorized to do business 
and regulated or supervised as a financia l institution under the law of the Party in 
which it is located; 
(d) the term “financial institution of the other Party” means a financial institution located 
in a Party that is owned or contro lled by persons of the other Party; 
(e) the term “financial service” means a service of a financial nature, including 
insurance, and a service incidental or auxiliary to a service of a financial nature; 
(f) the term “investment” means "investment" as defined in Article 96, except that, with 
respect to “loan” and “debt security” referred to in that Article: WT/REG198/1 
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 (i) a loan to or debt security issued by a financial institution is an investment 
only where it is treated as regulatory capital by the Party in which the financial institution is located;  and 
(ii) a loan granted by or debt security owne d by a financial institution, other than 
a loan to or debt security of a financ ial institution referred to in subparagraph 
(i) above, is not an investment;   
for greater certainty, 
(iii) a loan to, or debt security issued by, a Party or a state enterprise thereof is not 
an investment;  and 
(iv) a loan granted by or debt security owned by a cross-border financial service 
supplier, other than a loan to or debt security issued by a financial institution 
referred to in subparagra ph (i) above, is an investment under Chapter 7 if 
such loan or debt security meets the cr iteria for investments set out in Article 
96; 
(g) the term “investor of a Party” means a Party or state enterprise thereof, or a person of 
that Party, that seeks to make, makes, or has made an investment;  and 
(h) the term “public entity” means a central bank or a monetary authority of a Party, or 
any financial institution owned or controlled by a Party. 
CHAPTER 10:  ENTRY AND TEMPORARY STAY OF NATIONALS 
FOR BUSINESS PURPOSES 
Article 113 
General Principles
 
1. This Chapter reflects the preferential trading re lationship between the Parties, the desirability 
of facilitating entry and temporary stay on a reciprocal basis and of establishing transparent criteria and procedures for entry and temporary stay, and the need to ensure border security and to protect the 
domestic labor force and permanent employment in either Party. 
2. Each Party shall apply its measures relating to  the provisions of this  Chapter in accordance 
with paragraph 1 above, and in pa rticular, shall apply expeditiously  those measures so as to avoid 
unduly impairing or delaying trade in goods or servi ces or conduct of investment activities under this 
Agreement. 
Article 114 
Scope And Coverage
 
1. This Chapter shall apply to measures affecting th e entry and temporary stay of nationals of a 
Party who enter into the othe r Party for business purposes. 
2. This Chapter shall not apply to measur es affecting nationals seeking access to the 
employment market of the Parties, nor shall it a pply to measures regarding nationality or citizenship, 
or residence or employment on a permanent basis.  WT/REG198/1 
 Page 71 
 
 
 3. This Chapter shall not prevent a Party from applying measures to regulate the entry of 
nationals of the other Party into, or  their temporary stay in, the former Party, 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 under the terms of the categories in Annex 10. 
Note: The sole fact of requiring a visa for natu ral persons of a certain nationality and not for 
those of others shall not be regarded as  nullifying or impairing benefits under a 
specific category. 
Article 115 
Grant Of Entry And Temporary Stay
 
1. Each Party shall grant entry and temporary stay to nationals of the other Party in accordance 
with this Chapter including the terms of the categories in Annex 10.  
2. Each Party shall ensure that fees charged by its competent authorities for processing 
applications for entry and temporary stay of natio nals of the other Party for business purposes have 
regard to the administrative costs involved. 
Article 116 
Provision Of Information  
1. Further to Article 160, each Party shall:  
(a) provide to the other Party such materials as  will enable that other Party to become 
acquainted with its measures rela ting to this Chapter;  and  
(b) prepare, publish and make publicly available in the Parties, explanatory material in a 
consolidated document regarding the requir ements for entry and temporary stay under 
this Chapter, no later than one year afte r the date of entry into force of this 
Agreement. 
2. From the entry into force of this Agreement, ea ch Party shall, to the extent possible, collect, 
maintain and make available to the other Party, data respecting the granting of entry and temporary 
stay under this Chapter to nationals of the other Party. 
 
Article 117 
Sub-Committee On Entry And Temporary Stay  
1. For the purposes of the effective implementa tion and operation of this Chapter, a Sub-
Committee on Entry and Temporary Stay (hereinafter referred to in this Article as “the Sub-
Committee”) shall be established pursuant to Article 165. 
2. The functions of the Sub-Committee shall be:  
(a) reviewing the implementation and operation of this Chapter;   WT/REG198/1 
Page 72  
 
 (b) considering the development of measures to  further facilitate entry and temporary 
stay of nationals on a reciprocal basis;   
(c) enhancing mutual understanding between the Parties on credentials and other 
qualifications relevant to entry and temporar y stay of nationals under this Chapter; 
(d) reporting the findings of the Sub-Comm ittee and making recommendations to the 
Joint Committee;  and 
(e) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165.  Such functions may include reporting to the Joint Committee on options for possible modifications or additions to this Chapter. 
Article 118 
Dispute Settlement
 
1. Notwithstanding the provisions of Article 152, a Party may not request consultations with the 
other Party regarding refusal to grant entry an d temporary stay under this Chapter unless:  
(a) the matter involves a pattern of practice;  and 
(b) the nationals concerned have exhausted the administrative remedies, where available, 
regarding the particular matter. 
2. The remedies referred to in subparagraph 1(b) above shall be deemed to be exhausted if a 
final determination in the matter has not been issued  by the competent authorit y of a Party within one 
year after the date of the institution of an ad ministrative remedy, and the failure to issue a 
determination is not attributable to de lay caused by the nationals concerned.  
CHAPTER 11:  GOVERNMENT PROCUREMENT 
Article 119 
Scope And Coverage  
1. This Chapter shall apply to any measures adopt ed or maintained by a Party relating to 
government procurement: 
(a) by entities specified in Annex 11; 
(b) of goods specified in Annex 12, services specified in Annex 13, or construction 
services specified in Annex 14;  and 
(c) where the value of the contracts to be awarded is estimated to be not less than the 
thresholds specified in Annex 15 at the time of publication of an invitation to participate for procurement. 
2. Paragraph 1 above is subject to the General Notes set out in Annex 16.  WT/REG198/1 
 Page 73 
 
 
 3. This Chapter shall apply to government procurement by any contractual means, including 
through such methods as purchase or as lease, rental or hire purchase, with or without an option to buy, including any combination of goods and services. 
4. Subject to paragraph 5 below, where a contract to be awarded by an entity is not covered by 
this Chapter, this Chapter shall not be constr ued to cover any good or service component of that 
contract. 
5. Neither Party shall prepare, design or othe rwise structure any government procurement 
contract in order to avoid the obligations of this Chapter. 
Article 120 
National Treatment
 
1. With respect to any measures regarding govern ment procurement covered by this Chapter, 
each Party shall provide immediately and unconditi onally to the goods, services and suppliers of the 
other Party offering goods or services of the othe r Party, treatment no less favorable than that 
accorded to domestic goods, services and suppliers. 
2. With respect to any measures regarding govern ment procurement covered by this Chapter, 
each Party shall ensure: 
(a) that its entities shall not treat a locally -established supplier less favorably than 
another locally-established supplier on the basis of the degree of affiliation to, or ownership by, a person of the other Party;  and 
(b) that its entities shall not discriminate against locally-established suppliers on the basis 
of the country of production of the goods or  service being supplied, provided that the 
country of production is the other Party in accordance with the provisions of Article 
121. 
3. The provisions of paragraphs 1 and 2 above sha ll not apply to customs duties and charges of 
any kind imposed on or in connection with importation, the method of levying such duties and charges, other import regulations and formalities, and measures affecting trade in services other than 
measures regarding government procur ement covered by this Chapter. 
Article 121 
Rules Of Origin
 
1. A Party shall not apply rules of origin to go ods or services imported or supplied for purposes 
of government procurement covered by this Chapte r from the other Party which are different from the 
rules of origin applied by the former Party in the normal course of trade. 
Note: Rules of origin to services applied in the normal course of trade shall be understood in 
accordance with paragraph (f) “service of a nother Member” and (g) “service supplier” 
of Article XXVIII “Definitions” of the GATS. 
2. Subject to prior notification and consultation, a Pa rty may deny the benefits of this Chapter to 
a service supplier of the other Party where the deny ing Party establishes that the service is being 
provided by an enterprise that is owned or cont rolled by persons of a non-Party and that has no 
substantial business activities in the Area of any Party. WT/REG198/1 
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 3. A Party may deny to an enterprise of the other Pa rty the benefits of this Chapter if nationals 
of a non-Party own or control the enterprise and: 
(a) the denying Party does not maintain diploma tic relations with the non-Party;  or 
(b) the denying Party adopts or maintains measures with respect to the non-Party that 
prohibit transactions with the enterprise or that would be violated or circumvented if 
the benefits of this Chapter we re accorded to the enterprise. 
Article 122 
Procurement Procedures And Other Provisions
 
1. Each Party shall apply the respective rules and procedures set up in accordance with the 
provisions, as may be amended, specified in Annex 18. 
2. Where a Party considers that a modification to rules and procedures of the other Party 
corresponding to an amendment of the provisions specifi ed in Annex 18    affects access to the other 
Party’s government procurement market considerably , the former Party can request consultations in 
order to maintain equivalence between the treatment s under the rules and procedures of the Parties.  If 
no satisfactory solution can be found, the former Party may have recourse to the dispute settlement 
procedure under Chapter 15, with a view to mainta ining an equivalent level of access to the other 
Party’s government procurement market. 
3. The Party concerned shall notify the other Party of any modification to the rules and 
procedures referred to in paragraph 1 above no later than 30 days prior to the date of entry into force 
of such modification. 
4. If, in tendering procedures, an entity allows te nders to be submitted in several languages, one 
of those languages shall be English. 
5. No entity of either Party shall make it a conditio n for the qualification of suppliers and for the 
awarding of a contract that the supplier has previ ously been awarded one or more contracts by an 
entity of that Party or that the supplier has pr ior work experience in the Area of that Party. 
Article 123 
Offsets  
Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, 
goods or services, in the evaluation of bids or the award of contracts, consider, seek or impose offsets, except as set out in the General Notes of Annex 16.   For the purpose of this Article, offsets means 
conditions considered, sought or imposed by an enti ty prior to or in the course of its procurement 
process that encourage local development or improv e its Party’s balance of payments accounts, by 
means of requirements of local content, licensing of  technology, investment, counter-trade or similar 
requirements. 
Article 124 
Provision Of Information
 
1. Each Party shall promptly publish any law, regulation, judicial decision, administrative ruling 
of general application, and any procedure (including standard contract clauses) regarding government  WT/REG198/1 
 Page 75 
 
 
 procurement covered by this Chapter, in the appropr iate publications listed in  Annex 17 and in such a 
manner as to enable the other Party and supp liers to become acquainted with them.  
2. The Party of an unsuccessful tenderer may seek , without prejudice to the provisions under 
Chapter 15, such additional information on the cont ract award as may be necessary to ensure that the 
procurement was made fairly and impartially.  To th is end, the Party of the procuring entity shall 
provide information on both the characteristics and relative advantages of the winning tender and the 
contract price.  Normally this latter informati on may be disclosed by the former Party provided it 
exercises this right with discretion.  In cases where release of this information would prejudice 
competition in future tenders, this information sha ll be confidential and not be disclosed except after 
consultation with and agreement of the latter Party which gave the information to the former Party. 
3. Available information concerning procurement by covered entities and their individual 
contract awards shall be provided, upon requ est, to the Party requesting the information. 
4. Confidential information provided to a Part y which would impede law enforcement or 
otherwise be contrary to the public interest or would prejudice the legitimate commercial interest of 
particular enterprises, public or private, or might  prejudice fair competition between suppliers shall 
not be revealed without formal authorization from the other Party. 
5. With a view to ensuring effective monitoring of government procurement covered by this 
Chapter, each Party shall collect statistics and prov ide to the other Party on a reciprocal basis an 
annual report which shall contain the following inform ation to the extent that such information is 
available: 
(a) statistics on the number and total value of contracts above and below the applicable 
threshold values broken down by entities;   
(b) statistics on the number and total value of contracts above the applicable threshold 
values, broken down by entities, by categories of goods and services and by the country of origin of the goods and services procured;  and  
(c) statistics on the number and total value of contracts awarded under limited tendering 
procedures, broken down by entities, and by country of origin of the goods and 
services procured. 
Article 125 
Challenge Procedures
 
1. In the event of a complaint by a supplier that there has been a breach of  this Chapter in the 
context of a government procurement, each Party sh all encourage the supplier to seek resolution of its 
complaint in consultation with the procuring entity.   In such instances the procuring entity shall 
accord impartial and timely consideration to any such complaint, in a manner that is not prejudicial to 
obtaining corrective measures under the challenge system. 
2. Each Party shall provide non-discriminatory, tim ely, transparent and effective procedures 
enabling suppliers to challenge alleged breaches of th is Chapter arising in the context of government 
procurements in which they have , or have had, an interest. 
3. Each Party shall provide its challenge pro cedures in writing and make them generally 
available. WT/REG198/1 
Page 76  
 
 4. Each Party shall ensure that documentation rela ting to all aspects of the process concerning 
government procurements cove red by this Chapter shall be retained for 3 years. 
5. The interested supplier may be required to initiate a challenge procedure and notify the 
procuring entity within specified time-limits from the time when the basis of the complaint is known 
or reasonably should have been known, but in no case within a period of less than 10 days. 
6. A Party may require that a challenge pro cedure be initiated only after the notice of 
procurement has been published or, where a notice is not published, after tender documentation has 
been made available.  Where a Party imposes such  a requirement, the 10 day period described in 
paragraph 5 above shall begin no earlier than the date that the notice is published or the tender 
documentation is made available. 
7. Challenges shall be heard by an impartial and independent reviewing authority with no 
interest in the outcome of the government procur ement and the members of which are secure from 
external influence during the term of appointment.  A reviewing authority which is not a court shall 
either be subject to judicial review or  shall have procedures which provide that: 
(a) participants can be heard before an opini on is given or a decision is reached;   
(b) participants can be represented and accompanied;   
(c) participants shall have access to all proceedings;   
(d) proceedings can take place in public;   
(e) opinions or decisions are given in writing with a statement describing the basis for the 
opinions or decisions;   
(f) witnesses can be presented;  and 
(g) documents are disclosed to the reviewing authority. 
8. Challenge procedures shall provide for:  
(a) rapid interim measures to correct breach es of this Chapter and to preserve 
commercial opportunities.  Such action may result in suspension of the procurement 
process.  However, procedures may provide  that overriding adverse consequences for 
the interests concerned, including the public  interest, may be taken into account in 
deciding whether such measures should be applie d.  In such circumstances, just cause 
for not acting shall be provided in writing; 
(b) an assessment and a possibility for a decision on the justification of the challenge;  
and 
(c) where appropriate, correction of the breach of this Chapter or compensation for the 
loss or damages suffered, which may be limited to costs for tender preparation or 
protest. 
9. With a view to the preservation of the commercia l and other interests involved, the challenge 
procedure shall normally be completed in a timely fashion.  WT/REG198/1 
 Page 77 
 
 
 Article 126 
Exceptions  
1. Nothing in this Chapter shall be construed to  prevent a Party from taking any action or not 
disclosing any information which it considers nece ssary for the protection of its essential security 
interests relating to the procurement of arms, am munition or war materials, or to procurement 
indispensable for national security or for national defence purposes. 
2. Provided that such measures are not applied in  a manner that would constitute a means of 
arbitrary or unjustifiable discrimination between th e Parties where the same conditions prevail, or a 
disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to 
prevent a Party from imposing, enforcing or maintaining measures: 
(a) necessary to protect public morals, order or safety;   
(b) necessary to protect human, animal or plant life or health;   
(c) necessary to protect intellectual property;  or  
(d) relating to goods or services of handicapped persons, of ph ilanthropic ins titutions or 
of prison labor. 
Article 127 
Sub-Committee On Government Procurement  
1. For the purposes of the effective implementa tion and operation of this Chapter, a Sub-
Committee on Government Procurement (hereinaft er referred to in this Article as “the Sub-
Committee”) shall be established pursuant to Article 165.  
2. The functions of the Sub-Committee shall be: 
(a) analyzing available information on each Party’s government procurement market 
including the statistical information prov ided under paragraph 5 of Article 124; 
(b) evaluating the effective access of suppliers  of a Party to government procurement 
market of the other Party covered by this Chapter; 
(c) monitoring the application of the provisions of this Chapter and providing a forum to 
identify and address any problems or other issues that may arise; 
(d) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(e) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
3. The Parties shall cooperate, on mutually agreed  terms, to increase understanding of their 
respective government procurement systems, with a view to maximizing for the suppliers of both 
Parties the access to their respective government pr ocurement market.  For this purpose, each Party 
shall develop and implement, within one year after the entry into force of this Agreement, concrete 
measures for the cooperation, which may include tr aining and orientation programs for government 
personnel or interested suppliers regarding such aspects as how to identify government procurement WT/REG198/1 
Page 78  
 
 opportunities and how to participate in the resp ective government procurement markets.  In 
developing such measures, special attention sh ould be given to small businesses in each Party. 
Article 128 
Rectifications Or Modifications
 
1. A Party shall notify the other Party of its rectifications, or in exceptional cases, other 
modifications relating to Annexes 11, 12, 13, 14, 16 and 17 along with the information as to the likely 
consequences of the change for the mutually agreed coverage pr ovided in this Chapter.  If the 
rectifications or other modifications are of a purel y formal or minor nature , notwithstanding paragraph 
1 of Article 174, they shall become effective provided that no objection from the other Party has been raised within 30 days.  In other cases, both Parties shall consult the proposal and any claim for 
compensatory adjustments with a view to mainta ining a balance of rights and obligations and a 
comparable level of mutually agreed coverage provid ed in this Chapter prior to such rectification or 
other modification.  In the event of an agreemen t between the Parties not being reached, the Party 
which has received such notification may have re course to the dispute settlement procedure under 
Chapter 15. 
2. Notwithstanding any other provision of this Ch apter, a Party may undertake reorganizations 
of its entities covered by this Chapter, including  programs through which the procurement of such 
entities is decentralized or the corresponding gove rnment functions cease to be performed by any 
government entity, whether or not subject to this Chapter.  In cases of reorganizations, compensation 
need not be proposed.  Neither Party shall undertak e such reorganizations or programs to avoid the 
obligations of this Chapter. 
Article 129 
Privatization Of Entities
 
When government control at the federal or cen tral government level over an entity specified 
in Annex 11 has been effectively eliminated, notwithstanding that the government may possess 
holding thereof or appoint member of the board of di rectors thereto, this Chap ter shall no longer apply 
to that entity.  A Party shall notify the other Party of the name of such entity before elimination of 
government control or as soon thereafter as possible. 
Article 130 
Miscellaneous Provisions  
1. The Joint Committee may make recommendations  to the Parties to adopt appropriate 
measures to enhance the conditions for effective ac cess to a Party’s covered government procurement 
or, as the case may be, to adjust a Party’s coverage  so that such conditions for effective access are 
maintained on an equitable basis. 
2. In the event that after the en try into force of this Agreement a Party offers a non-Party 
specified in paragraph 3 below additional advantag es of access to its government procurement market 
beyond what the other Party has been provided with u nder this Chapter, the former Party shall consent 
to enter into negotiations with the other Party w ith a view to extending these advantages to the other 
Party on a reciprocal basis. 
3. A non-Party referred to in paragraph 2 above sh all be, in the case of Japan, a Party to the 
Agreement on Government Procurem ent in Annex 4 to the WTO Agreement, as may be amended,  WT/REG198/1 
 Page 79 
 
 
 (hereinafter referred to as “the GPA”) or a party to an existing Economic Partnership Agreement with 
Japan and in the case of Mexico, a party to the No rth American Free Trade Agreement, as may be 
amended, (hereinafter referred to as “t he NAFTA”) or the European Communities. 
CHAPTER 12:  COMPETITION 
Article 131 
Anticompetitive Activities  
Each Party shall, in accordance with its appli cable laws and regulations, take measures which 
it considers appropriate against an ticompetitive activities, in order to facilitate trade and investment 
flows between the Parties and the efficient functioning of its market.  
Article 132 
Cooperation On Controlling Anticompetitive Activities  
1. The Parties shall, in accordance with their resp ective laws and regulations, cooperate in the 
field of controlling anticompetitive activities. 
2. The details and procedures of cooperation under this Article shall be specified in an 
implementing agreement.  
Article 133 
Non-Discrimination  
Each Party shall apply its competition laws and regulations in a manner which does not 
discriminate between persons in like circum stances on the basis of their nationality. 
Article 134 
Procedural Fairness  
Each Party shall implement administrative and judicial procedures in a fair manner to control 
anticompetitive activities, pursuant to its  relevant laws and regulations. 
Article 135 
Non-Application Of Article 164 And Chapter 15  
Article 164 and the dispute settlement procedure provided for in Chapter 15 shall not apply to 
this Chapter. WT/REG198/1 
Page 80  
 
 CHAPTER 13:  IMPROVEMENT OF THE BUSINESS ENVIRONMENT 
Article 136 
Consultations For The Improvement Of The Business Environment
 
The Parties, confirming their interest in creating a more favorable business environment with 
a view to promoting trade and investment activities by their private enterprises, shall from time to 
time have consultations in order to address issu es concerning the improvement of the business 
environment in the Parties. 
Article 137 
Committee For The Improvement Of The Business Environment  
1. For the purposes of addressing issues concerning the improvement of the business 
environment, a Committee for the Improvement of th e Business Environment (hereinafter referred to 
in this Article as “the Committee”) shall be established.  
2. The Committee: 
(a) shall discuss ways and means to improve the business environment in the Parties; 
(b) may, as needed, make recommendations on a ppropriate measures to be taken by the 
Parties.  Such recommendations should be ta ken into consideration by the Parties; 
(c) shall be provided with information on th e implementation of such recommendations; 
(d) may make public such recommendations in an appropriate manner;  and 
(e) may give the Joint Committee advisory opinions, where appropriate. 
3. The Committee:  
(a) shall be composed of representatives of the Governments of the Parties; 
(b) may invite representatives of relevant en tities other than the Governments of the 
Parties with the necessary expertise releva nt to the issues to be discussed;  and 
(c) shall establish its rules and procedures. 
Article 138 
Non-Application Of Chapter 15  
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Chapter.  WT/REG198/1 
 Page 81 
 
 
 CHAPTER 14:  BILATERAL COOPERATION 
Article 139 
Cooperation In The Field Of Trade And Investment Promotion  
1. The Parties shall cooperate in promoting trade a nd investment activities by private enterprises 
of the Parties, recognizing that the joint efforts of  the Parties to facilitate exchange and collaboration 
between private enterprises will act as a catalyst to further promote trade and investment between the 
Parties.  Such cooperation between the Parties includes:  
(a) encouraging the exchange of trade, investment and marketing experts and trainees to 
foster business opportunities;   
(b) exchanging information concerning laws, re gulations and practices in relation to 
bilateral trade and investment; 
(c) encouraging the joint organization of trad e and investment missions, seminars, fairs 
and exhibitions;   
(d) encouraging the sharing, through electronic linkages, of online databases of private 
enterprises of the Parties keen to establish business ties;  and  
(e) encouraging the exchange of information,  for the identification of investment 
opportunities and the promotion of business a lliances, for the establishment of joint 
ventures between private enterprises of both Parties. 
2. For the purposes of the effective implementation and operation of this Article, a Sub-
Committee on Cooperation in the Field of Trade and I nvestment Promotion (hereinafter referred to in 
this Article as “the Sub-Committee”) sha ll be established pursuant to Article 165. 
3. The functions of the Sub-Committee shall be: 
(a) reviewing the implementation a nd operation of this Article; 
(b) discussing any issues related to this Article;   
(c) reporting the findings of the Sub-Committee to the Joint Committee;  and  
(d) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
Article 140 
Cooperation In The Field Of Supporting Industries  
The Parties shall cooperate in promoting th e development of supporting industries of both 
Parties with a view to improving the business environment and to promoting bilateral trade and investment.  Such cooperation includ es encouraging appropriate entities to: 
(a) assist private enterprises of either Party to enter supporting industries’ market of the 
other Party through direct investment or joint ventures; WT/REG198/1 
Page 82  
 
 (b) assist private enterprises of supporting industries to establish their business ties with 
other private enterprises of supporting in dustries, as well as final goods suppliers; 
(c) assist actual or potential private enterpri ses of supporting industries through financial 
and technological support;  and 
(d) exchange experts and information on best practices and methodologies for the 
development of supporting industries. 
Article 141 
Cooperation In The Field Of Small And Medium Enterprises
 
The Parties shall cooperate in promoting the de velopment of small and medium enterprises of 
both Parties (hereinafter referred to in this Article as “SMEs”) in order to maintain the dynamism of 
their respective economies and promote favorable e nvironment for bilateral trade and investment.  
Such cooperation may include:   
(a) exchange of information on SMEs policies for: 
(i) strengthening competitiveness of SMEs; 
(ii) assisting SMEs to start up businesses;  and  
(iii) promoting entrepreneurial networks of SMEs;   
(b) encouragement of establishment of netw orks among appropriate entities of both 
Parties that provide assistance to SMEs;  and 
(c) encouragement of the exchange of experts on the development of SMEs.  
Article 142 
Cooperation In The Field Of Science And Technology  
1. The Parties, recognizing that science and technology will contribute to the continued 
expansion of their respective economies in the me dium and long term, sh all develop and promote 
cooperative activities between the Governments of th e Parties for peaceful purposes in the field of 
science and technology on the basis of equality and mutual benefit. 
2. Forms of the cooperative activities under this Article may include: 
(a) exchange of information regarding scien ce and technology policies and programs and 
data; 
(b) joint seminars, workshops and meetings; 
(c) visits and exchanges of scientists, t echnical personnel or other experts; 
(d) implementation of joint projects and programs;   
(e) encouragement of cooperation for research  and development re lated to industrial 
technologies;  and  WT/REG198/1 
 Page 83 
 
 
 (f) encouragement of cooperation between educational and research institutions. 
3. Scientific and technological information of  a non-proprietary nature arising from the 
cooperative activities under this Article  may be made available to th e public by the Government of 
either Party. 
4. In accordance with the applicable laws and re gulations of the Parties and with relevant 
international agreements to which the Parties are pa rties, the Parties shall ensure the adequate and 
effective protection, and give due consideration to the distribution, of intellectual property rights or 
other rights of a proprietary nature resulting fro m the cooperative activities under this Article.  The 
Parties shall consult for this purpose as necessary. 
5. The implementation of this Article shall be subj ect to the availability of appropriated funds 
and the applicable laws and regulations of each Party. 
6. Costs of the cooperative activities under this Article  shall be borne in such manner as may be 
mutually agreed. 
7. Implementing arrangements setting forth the details and procedures of the cooperative 
activities under this Article may be made betw een the government agencies of the Parties. 
Article 143 
Cooperation In The Field Of Technical And Vocational Education And Training  
The Parties, recognizing that sustainable econo mic growth and prosperity largely depend on 
people’s knowledge and skills, in order to raise the productivity and competitiveness of private 
enterprises of either Party, shall develop cooperatio n between the Governments of the Parties in the 
field of technical and vocational education a nd training.  Such cooperation may include: 
(a) exchange of information related to b est practices on technical and vocational 
education and training including labor policy; 
(b) encouragement of technical and vocational e ducation and training, including training 
of related instructors and development of training programs, particularly for the development of higher technological education and distance education;  and 
(c) encouragement of exchange of scholars,  teachers, instructors and students. 
Article 144 
Cooperation In The Field Of Intellectual Property
 
The Parties, recognizing the growing importance of intellectual property (hereinafter referred 
to in this Article as “IP”) as a factor of ec onomic competitiveness in the knowledge-based economy, 
and of IP protection in this new environment, shall develop their cooperation in the field of IP.  Such 
cooperation may include the exchange of information on: 
(a) public awareness activities of the importance of IP protection and the function of IP 
protection systems to their respective nationals; 
(b) improvement of IP protection systems and their operation; WT/REG198/1 
Page 84  
 
 (c) policy measures conducive to ensuring ade quate enforcement of IP rights;  and 
(d) automation of administrative processes of IP authority in order to enhance its 
efficiency. 
Note: Information provided from a Party to the ot her Party pursuant to this Article shall not 
include information regarding individual case s of infringement of intellectual property 
rights so as not to be used by the receiving Party in criminal proceedings carried out 
by a court or a judge. 
Article 145 
Cooperation In The Field Of Agriculture
 
1. The Parties, recognizing that the development in the field of agriculture in both Parties is of 
mutual interest and of economic and social importa nce for the rational and sustainable use of natural 
resources, shall cooperate in the field of agriculture.  Such cooperation may include:  
(a) exchange of information and data regarding experience of  rural development, know-
how of financial assistance to farmers and the  agricultural cooperatives system; 
(b) encouragement of dialogues and exchange of information between entities other than 
the Governments of the Parties concerning agriculture;  and 
(c) encouragement of joint scientific and technological research in agriculture including 
new technologies. 
2. For the purposes of the effective implementation and operation of this Article, a Sub-
Committee on Cooperation in the Field of Agriculture (h ereinafter referred to in this Article as “the 
Sub-Committee”) shall be established pursuant to Article 165. 
3. The functions of the Sub-Committee shall be: 
(a) reviewing the implementation a nd operation of this Article; 
(b) discussing any issues related to this Article; 
(c) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(d) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
Article 146 
Cooperation In The Field Of Tourism  
1. The Parties, recognizing that tourism will contribute to the enhancement of mutual 
understanding between them and that tourism is an important industry for their economies, shall 
cooperate to promote and develop tourism in the Parties.  Such cooperation may include: 
(a) exchange of information on:  WT/REG198/1 
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 (i) activities and policies, including best practices, concerning market research, 
sustainable development of tourism and the strengthening of the competitiveness of the tourism industry;  and 
(ii) laws, regulations and statistics on tourism; 
(b) provision of appropriate assistance for tourism promotion campaigns;   
(c) encouragement of cooperation between entiti es other than the Governments of the 
Parties concerning the promotion a nd development of tourism;  and 
(d) encouragement of training of persons  engaged in the tourism industry. 
2. For the purposes of the effective implementation and operation of this Article, a Sub-
Committee on Cooperation in the Field of Tourism (herei nafter referred to in this Article as “the Sub-
Committee”) shall be established pursuant to Article 165. 
3. The functions of the Sub-Committee shall be: 
(a) reviewing the implementation a nd operation of this Article; 
(b) discussing any issues related to this Article;   
(c) reporting the findings of the Sub-Committee to the Joint Committee;  and 
(d) carrying out other functions which may be delegated by the Joint Committee pursuant 
to Article 165. 
Article 147 
Cooperation In The Field Of Environment
 
1. The Parties, recognizing the need for envi ronmental preservation and improvement to 
promote sound and sustainable development, shall coope rate in the field of environment.  Cooperative 
activities under this Article may include: 
(a) exchange of information on policies, laws, regulations and technology related to the 
preservation and improvement of the environment, and the implementation of sustainable development; 
(b) promotion of capacity and institutional building to foster activities related with the 
Clean Development Mechanism under the Ky oto Protocol to the United Nations 
Framework Convention on Climate Change , as may be amended, by means of 
workshops and dispatch of experts, and expl oration of appropriate ways to encourage 
the implementation of the Clean Development Mechanism projects; 
(c) encouragement of trade and disseminati on of environmentally sound goods and 
services;  and 
(d) encouraging the exchange of informati on for the identification of investment 
opportunities and the promotion and developm ent of business alliances in the field of 
environment. WT/REG198/1 
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 2. Implementing arrangements setting forth the de tails and procedures of cooperative activities 
under this Article may be made between the government agencies of the Parties.  
Article 148 
Non-Application Of Chapter 15
 
The dispute settlement procedure provided for in Chapter 15 shall not apply to this Chapter. 
Article 149 
Relation To Other Agreements  
1. The Agreement between the Government of Japan and the Government of the United 
Mexican States concerning Cooperation in the Field of Tourism signed in Tokyo, on November 1, 1978 shall expire upon the date of entr y into force of this Agreement.  
2. It is confirmed by both Parties that nothing in this Chapter prejudices the rights and 
obligations of the Parties under the Agreement on Technical Cooperation between the Government of 
Japan and the Government of the United Mexican States signed in Tokyo, on December 2, 1986, as 
may be amended. 
CHAPTER 15:  DISPUTE SETTLEMENT 
Article 150 
Scope And Coverage
 
Except as otherwise provided for in this Agreemen t, this Chapter shall apply with respect to 
the settlement of all disputes between the Parties re garding the interpretation or application of this 
Agreement. 
Article 151 
Choice Of Dispute Settlement Procedure  
1. Nothing in this Chapter shall prejudice any rights  of the Parties to have recourse to dispute 
settlement procedures available under any other inte rnational agreement to which both Parties are 
parties. 
2. Notwithstanding paragraph 1 above, once a dis pute settlement procedure has been initiated 
under this Chapter or under any other international agreement to which both Parties are parties with 
respect to a particular dispute, that procedure shall be used to the exclusion of any other procedure for 
that particular dispute.  However, this does not a pply if substantially separate and distinct rights or 
obligations under different interna tional agreements are in dispute. 
3. For the purposes of paragraph 2 above, a di spute settlement procedure under this Chapter 
shall be deemed to be initiated by a Party’s requ est for the establishment of an arbitral tribunal 
pursuant to paragraph 1 of Article 153.  
4. For the purposes of paragraph 2 above, a dispute settlement procedure under the WTO 
Agreement shall be deemed to be  initiated by a Party’s request for the establishment of a panel  WT/REG198/1 
 Page 87 
 
 
 pursuant to Article 6 of the Understanding on Ru les and Procedures Governing the Settlement of 
Disputes in Annex 2 to the WTO Agreement, as may be amended. 
Article 152 
Consultations  
1. Each Party may request in writing consultations with the other Party regarding any matter on 
the interpretation or application of this Agreement. 
2. When a Party requests consultations pursuant to paragraph 1 above, the other Party shall reply 
to the request and enter into consu ltations in good faith within 30 days after the date of receipt of the 
request, with a view to a prompt and satisfactory resolution of the matter.  In a case of consultations regarding perishable goods, the requested Party shall en ter into consultations within 15 days after the 
date of receipt of the request.  
Article 153 
Establishment Of Arbitral Tribunals
 
1. The complaining Party that requested consu ltations under Article 152 above may request in 
writing the establishment of an arbitral tr ibunal to the Party complained against: 
(a) if the Party complained against does not ente r into such consultations within 30 days 
after the date of its receipt of the request for consultations under that Article;  or  
(b) if the Parties fail to resolve the dispute th rough such consultations under that Article 
within 60 days after the date of receipt of the request for such consultations,  
provided that the complaining Party considers that any benefit accruing to it directly or indirectly 
under this Agreement is being nullifie d or impaired as a result of the failure of the Party complained 
against to carry out its obligations, or as a result of  the application by the Party complained against of 
measures which are in conflict with the obligati ons of that Party, under this Agreement.  
2. Any request for the establishment of an arbitral tribunal pursuant to this Article shall identify: 
(a) the legal basis of the complaint, including th e provisions of this Agreement alleged to 
have been breached and any othe r relevant provisions;  and  
(b) the factual basis for the complaint.  
3. The arbitral tribunal shall comprise 3 arbitrators. 
4. Each Party shall, within 30 days after the date of receipt of the request for the establishment 
of an arbitral tribunal, appoint one arbitrator who may be its national and propose up to 3 candidates 
to serve as the third arbitrator who shall be the chair of the arbitral tribunal.  The third arbitrator shall 
not be a national of either Party, nor have his or her usual place of residence in either Party, nor be 
employed by either Party. 
5. The Parties shall agree on and appoint the third arbitrator within 45 days after the date of 
receipt of the request for the establishment of an ar bitral tribunal, taking into account the candidates 
proposed pursuant to paragraph 4 above. WT/REG198/1 
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 6. If a Party has not appointed one arbitrator pursuan t to paragraph 4 above or if the Parties fail 
to agree on and appoint the third arbitrator pursuant to  paragraph 5 above, such ar bitrator or such third 
arbitrator shall be chosen by lot within furt her 7 days from the candidates proposed pursuant to 
paragraph 4 above.  
7. The date of the establishment of an arbitral tr ibunal shall be the date on which the chair is 
appointed.  
8. Unless the Parties otherwise agree within 20 days from the date of receipt of the request for 
the establishment of the arbitral tribunal, the terms of reference of such arbitral tribunal shall be: 
“To examine, in the light of the relevant  provisions of this Agreement, the matter 
referred to in the request for the establishment of an arbitral tribunal pursuant to this 
Article, to rule on the consistency of the me asures at issue with this Agreement, and, 
where the arbitral tribunal reaches the conc lusion that the measure is inconsistent 
with this Agreement, to make recommenda tions that the Party complained against 
bring the measure into conformity w ith this Agreement.  When making 
recommendations, the arbitral tribunal may not suggest specific ways in which the 
Party complained against could implement the recommendations.” 
9. The Parties shall promptly deliver the terms of reference pursuant to paragraph 8 above to the 
arbitral tribunal. 
10. If an arbitrator dies, withdraws or is removed,  a replacement shall be appointed within 30 
days in accordance with the appointment procedure provided for in paragraphs 4 to 6 above, which 
shall be applied, respectively, mutatis mutandis .  In such a case, any time period applicable to the 
arbitral tribunal proceeding shall be suspended for a period beginning on the date the arbitrator dies, 
withdraws or is removed and ending on th e date the replacement is appointed.  
Article 154 
Award Of Arbitral Tribunals
 
1. The arbitral tribunal shall meet in closed session. 
2. The deliberations of the arbitral tribunal, th e documents submitted to it and the draft award 
referred to in paragraph 4 belo w shall be kept confidential. 
3. Nothing in this Chapter shall preclude a Party from disclosing statements of its own position 
to the public.  Each Party shall tr eat as confidential, information submitted by the other Party to the 
arbitral tribunal which that other Party has desi gnated as confidential.  A Party shall also, upon 
request of the other Party, provide a non-confidenti al summary of the information contained in its 
written submissions that could be disclosed to the public.  
4. The arbitral tribunal shall, within 90 days af ter the date of its establishment, submit to the 
Parties its draft award, including both descriptiv e part and its findings and conclusions, for the 
purposes of enabling the Parties to review precise aspects of the draft award.  When the arbitral 
tribunal considers that it cannot submit to the Parti es its draft award within the aforementioned 90 day 
period, it may extend that period with the consent of the Parties.  However, in no case should the 
period from the establishment of the arbitral tribun al to the submission of the draft award to the 
Parties exceed 150 days.  A Party may submit commen ts in writing to the arbitral tribunal on the draft 
award within 15 days after the date of the submission of the draft award.   WT/REG198/1 
 Page 89 
 
 
 5. The arbitral tribunal shall issue its award within  30 days after the date of the submission of 
the draft award.  
6. In the case that the matters referred to the ar bitral tribunal are those concerning perishable 
goods, the arbitral tribunal shall make every effort to issue its award to the Parties within 90 days after 
the date of its establishment.  In no case should it do so later than 120 days. 
7. The arbitral tribunal shall take its decisi ons including its award by majority vote. 
8. The award of the arbitral tribunal shall be final and binding on the Parties. 
Article 155 
Termination Of Proceedings Of The Arbitral Tribunal  
While the proceedings of the arbitral tribuna l are in progress, the Parties may agree to 
terminate the proceedings at any time by jointly so notifying the chair of the arbitral tribunal. 
Article 156 
Implementation Of Award  
1. The Party complained against shall promptly comp ly with the award of the arbitral tribunal 
issued pursuant to Article 154. 
2. The Party complained against shall, within 20 days after the date of issuance of the award, 
notify the complaining Party of the period of time for implementing the award.  If the complaining Party considers the period of time notified to be una cceptable, it may refer the matter to an arbitral 
tribunal. 
3. If the Party complained against fails to comp ly with the award within the implementation 
period as determined pursuant to paragraph 2 above, the Party complained against shall no later than 
the expiry of that implementation period enter into consultations with the complaining Party, with a 
view to developing mutually acceptable compensat ion.  If no satisfactory compensation has been 
agreed within 20 days after the date of expiry of  that implementation period, the complaining Party 
may notify the Party complained against that it in tends to suspend the application to the Party 
complained against of concessions or ot her obligations under this Agreement. 
4. If the complaining Party considers that measur es taken by the Party complained against for 
implementing the award do not comply with the award within the implementation period as determined pursuant to paragraph 2 above, it ma y refer the matter to an arbitral tribunal. 
5. If the arbitral tribunal to which the matter is referred pursuant to paragraph 4 above confirms 
that the Party complained against has failed to comply with the award within the implementation 
period as determined pursuant to pa ragraph 2 above, the complaining Pa rty may, within 30 days after 
the date of such confirmation by the arbitral tr ibunal, notify the Party complained against that it 
intends to suspend the application to the Party comp lained against of concessions or other obligations 
under this Agreement. 
6. Suspension of the application of concessions or  other obligations under paragraphs 3 and 5 
above may only be implemented at least 30 days af ter the date of the notification in accordance with 
those paragraphs.  Such suspension shall:  WT/REG198/1 
Page 90  
 
 (a) not be effected if, in respect of the dispute to which the suspension relates, 
consultations, or proceedings before an arbitral tribunal are in progress;   
(b) be temporary, and be discontinued when the Parties reach a mutually satisfactory 
resolution or where compliance with the award is effected;   
(c) be restricted to the same level of nullification or impairment that is attributable to the 
failure to comply with the award;  and   
(d) be restricted to the same sector or sector s to which the nullification or impairment 
relates, unless it is not practicable or effective to suspend the application of 
concessions or other obligations in such sector or sectors.  
7. If the Party complained against considers that  the requirements for the suspension of the 
application to it of concessions or other obligatio ns under this Agreement by the complaining Party 
set out in paragraph 3, 5 or 6 above have not been me t, it may refer the matter to an arbitral tribunal.  
8. The arbitral tribunal that is established for th e purposes of this Article shall, wherever 
possible, have as its arbitrators, the arbitrators to the original arbitral tribunal.  If this is not possible, 
then the arbitrators to the arbitral  tribunal that is established for th e purposes of this Article shall be 
appointed pursuant to paragraphs 4 to 6 of Article 15 3.  Unless the Parties agree to a different period, 
such arbitral tribunal shall issue its award within 30  days after the date when the matter is referred to 
it.  The award of the arbitral tribunal established unde r this Article shall be binding on the Parties.   
Article 157 
Modification Of Time Periods
 
Any time period provided for in this Chapter may be modified by mutual consent of the 
Parties.  
Article 158 
Expenses  
Unless the Parties agree otherwise, the expen ses of the arbitral tribunal, including the 
remuneration of its arbitrators, shall be borne by the Parties in equal shares.  
Article 159 
Rules Of Procedure  
Unless the Parties agree otherwise, the details and procedures for the arbitral tribunal 
provided for in this Chapter shall be in accordance with the Rules of Procedure to be adopted by the 
Joint Committee within the first year of the da te of entry into force of this Agreement.   WT/REG198/1 
 Page 91 
 
 
 CHAPTER 16:  IMPLEMENTATION AND OPERATION OF THE AGREEMENT 
Article 160 
Transparency  
1. Each Party shall promptly publish, or otherwise make publicly available, its laws, regulations, 
administrative procedures and administrative rulings a nd judicial decisions of general application as 
well as international agreements to which the Party is a party, respecting any matter covered by this 
Agreement. 
2. Each Party shall, upon request by the other Party, promptly respond to specific questions 
from, and provide information to, the other Party w ith respect to matters referred to in paragraph 1 
above.  
3. Nothing in this Article shall prejudice as to  whether a measure adopted by a Party is 
consistent with this Agreement.  
Article 161 
Public Comment Procedures  
The Government of each Party shall, in accord ance with the domestic laws and regulations of 
the Party, endeavor to maintain public comme nt procedures, except in cases of emergency, inter alia , 
a real or imminent danger to the health, safety, or welfare of persons, to the preservation of the environment or to the conservation of ex haustible natural resources, in order to: 
(a) make public in advance regulations of ge neral application that affect any matter 
covered by this Agreement, accompanied by  an explanation of their rationale and 
potential effects, when the Government  adopts, amends or repeals them; 
(b) provide a reasonable opportunity for comment s by the public and give consideration 
to those comments before the adoption of such regulations;  and 
(c) make public those comments.  Where appropriate, those comments should be 
compiled and accompanied by the views of the Government on them.  
Article 162 
Administrative Proceedings
 
1. Where measures are to be adopted which pertain to or affect the implementation and 
operation of this Agreement, the competent author ities of a Party shall, in accordance with the 
domestic laws and regula tions of the Party: 
(a) inform the applicant of the decision con cerning the application within a reasonable 
period of time after the submission of an application considered complete under the 
domestic laws and regulati ons of the Party;  and 
(b) provide, without undue delay, information con cerning the status of the application, at 
the request of the applicant. WT/REG198/1 
Page 92  
 
 2. Where measures are to be adopted by the compet ent authorities of a Party which pertain to or 
affect the implementation and ope ration of this Agreement and which impose obligations on or 
restrict rights of a person, such competent authoriti es shall, prior to any final decision, when time, the 
nature of the measures and public interest perm it and in accordance with the domestic laws and 
regulations of the Party, provide that person with: 
(a) a reasonable notice, including a description of the nature of the measure, specific 
provisions upon which such measure will be  based, and the facts which may be a 
cause of taking such measure;  and 
(b) a reasonable opportunity to present facts a nd arguments in support of the position of 
such person. 
Article 163 
Review And Appeal
 
1. Each Party shall maintain judicial or administrative tribunals or procedures for the purpose of 
prompt review and, where warranted, correction of  administrative actions re garding matters covered 
by this Agreement.  Such tribunals or procedures shall be impartial and inde pendent of the authorities 
entrusted with the administrative enforcement. 
2. Each Party shall ensure that, in any such tribuna ls or procedures, the parties to the proceeding 
are provided with the right to: 
(a) a reasonable opportunity to support or defend their respective positions;  and  
(b) a decision based on the evidence and submissions of record. 
3. Each Party shall ensure, subject to appeal or further review as provide d in its domestic laws 
and regulations, that such decisions are implemente d by the competent authorities of the Party with 
respect to the administrative action at issue. 
Article 164 
Confidential Information  
1. Unless otherwise provided for in this Agreemen t, neither Party shall be required by this 
Agreement to provide confidential information,  the disclosure of which would impede the 
enforcement of its domestic laws and regulati ons, including the law protecting the information 
relating to personal privacy or the financial affair s or accounts of individual customers of financial 
institutions, or otherwise be contrary to the publ ic interest, or which would prejudice legitimate 
commercial interests of particular enterprises, public or private. 
2. Each Party shall, in accordance with its domestic laws and regul ations, maintain the 
confidentiality of information provided in confidence by the other Party pursuant to this Agreement. 
Article 165 
Joint Committee  
1. The Joint Committee composed of  representatives of the Governments of the Parties shall be 
established under this Agreement.  WT/REG198/1 
 Page 93 
 
 
 2. The functions of the Joint Committee shall be: 
(a) reviewing the implementation and operation of this Agreement and, when necessary, 
making appropriate recommendations to the Parties;   
(b) considering and recommending to the Parti es any amendments to this Agreement; 
(c) by mutual consent of the Parties, serving as a forum for consultations referred to in 
Article 152; 
(d) supervising the work of all Sub-Comm ittees established under this Agreement; 
(e) adopting: 
(i) modifications to Annexes referred to in Articles 8 and 37; 
(ii) the Uniform Regulations referred to in Article 10; 
(iii) an interpretation of a provision of this  Agreement referred to in Articles 84 
and 89;   
(iv) the Rules of Procedure referred to in Article 159;  and  
(v) any necessary decisions;  and 
(f) carrying out other functions as the Parties may agree. 
3. The Joint Committee may: 
(a) establish and delegate its responsibilities to Sub-Committees for the purposes of the 
effective implementation and operation of this Agreement;  and  
(b) take such other action in the exercise of its functions as the Parties may agree. 
4. The following Sub-Committees shall be established on the date of entry into force of this 
Agreement:  
(a) Sub-Committee on Trade in Goods. 
(b) Sub-Committee on Sanitary and Phytosanitary Measures. 
(c) Sub-Committee on Technical Regulations, Standards and Conformity Assessment 
Procedures. 
(d) Sub-Committee on Rules of Origin, Certificate of Origin and Customs Procedures. 
(e) Sub-Committee on Cross-Border Trade in Services. 
(f) Sub-Committee on Entry and Temporary Stay. 
(g) Sub-Committee on Government Procurement. 
(h) Sub-Committee on Cooperation in the Field of Trade and Investment Promotion. WT/REG198/1 
Page 94  
 
 (i) Sub-Committee on Cooperation in the Field of Agriculture. 
(j) Sub-Committee on Cooperation in the Field of Tourism. 
Other Sub-Committees may be established as the Parties may agree. 
5. The Joint Committee shall establish its rules and procedures.  
6. The Joint Committee shall meet alte rnately in Japan and Mexico at the request of either Party. 
Article 166 
Communications
 
Each Party shall designate a contact point to facilitate communications between the Parties on 
any matter relating to this Agreement. 
Article 167 
Relation To Other Agreements  
1. The Parties reaffirm their rights and obligations under the WTO Agreement. 
2. Nothing in Chapters 3, 7 and 8 shall be cons trued to prevent either Party from taking any 
necessary action as may be authorized by Article 22 of the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement, as may be amended. 
3. The Convention on Commerce between Japan and the United Mexican States signed at Tokyo 
on January 30, 1969 shall expire upon the date of entry into force of this Agreement. 
CHAPTER 17:  EXCEPTIONS 
Article 168 
General Exceptions
 
1. For the purposes of Chapters 3, 4, 5, and 6, Ar ticle XX of the GATT 1994 is incorporated into 
and made part of this Agreement, mutatis mutandis. 
2. For the purposes of Chapters 8 and 10, paragraphs (a), (b) and (c) of Article XIV of the 
GATS are incorporated into and made part of this Agreement, mutatis mutandis.  
Article 169 
National Security  
For the purposes of Chapters 3, 4, 5, 6, 7, 8, 10 and 16, nothing in this Agreement shall be 
construed: 
(a) to require a Party to furnish or allow access to any information the disclosure of 
which it considers contrary to its essential security interests;  WT/REG198/1 
 Page 95 
 
 
 (b) to prevent a Party from taking any action that  it considers necessary for the protection 
of its essential security interests: 
(i) relating to the traffic in arms, ammuniti on and implements of war and to such 
traffic and transactions in other goo ds, materials or services undertaken 
directly or indirectly for the purpose of  supplying a military or other security 
establishment,  
(ii) taken in time of war or other emergenc y in international relations, or   
(iii) relating to the implementation of nationa l policies or international agreements 
respecting the non-proliferation of nuclear weapons or other nuclear 
explosive devices, or relating to fissionable and fusionable materials or the 
materials from which they are derived;  or  
(c) to prevent a Party from taking any action in pursuance of its obligations under the 
United Nations Charter, as may be amended,  for the maintenance of international 
peace and security. 
Article 170 
Taxation  
1. Except as otherwise provided for in this Article , nothing in this Agreement shall apply to 
taxation measures. 
2. Nothing in this Agreement shall affect the right s and obligations of either Party under any tax 
convention.  In the event of any inconsistency betw een this Agreement and any such convention, that 
convention shall prevail to the extent of the inconsistency. 
Note: The term “tax convention” means a convention for the avoidance of double taxation 
or other international taxati on agreement or arrangement. 
3. Notwithstanding paragraph 2 above: 
(a) Article 3 shall apply to taxation measures to the same extent as does Article III of the 
GATT 1994;  and 
(b) Article 6 shall apply to taxation measures. 
4. (a) Article 61 shall apply to taxation measur es except that no investor may invoke that 
Article as the basis for a claim under Artic le 76, where it has been determined 
pursuant to subparagraph (b) below that the measure is not an expropriation. 
(b) The investor shall refer the issue, at the time that it gives a written request under 
Article 78, to the competent authorities of  both Parties to determine whether such 
measure is not an expropriation.  If the competent authorities of both Parties do not 
consider the issue or, having considered it, fa il to determine that the measure is not an 
expropriation within a period of 180 days of such referral, the investor may submit its 
claim to arbitration under Article 79.  
(c) For the purposes of subparagraph (b) above, the term “competent authorities” means: WT/REG198/1 
Page 96  
 
 (i) in the case of Mexico, the Ministry of Finance and Public Credit;  and 
(ii) in the case of Japan, the Minister of Fi nance or his authorized representative. 
Article 171 
Payments And Transfers And Restrictions
 
To Safeguard The Balance Of Payments  
1. For the purposes of Chapter 3: 
(a) nothing in this Agreement shall be cons trued to prevent a Party from taking any 
measure for balance-of-payments purposes; 
(b) a Party taking such measure shall do so in accordance with the conditions established 
under Article XII of the GATT 1994, and the Understanding on the Balance-of-
Payments Provisions of the General Agre ement on Tariffs and Trade 1994 in Annex 
1A to the WTO Agreement, as may be amended;  and 
(c) nothing in this Agreement shall preclude the use by a Party of exchange controls or 
exchange restrictions in accordance w ith the Articles of Agreement of the 
International Monetary Fund, as may be amended. 
2. For the purposes of Chapter 8: 
(a) except under the circumstances envisaged in subparagraph (d) below, a Party shall 
not apply restrictions on international tran sfers and payments for current transactions 
relating to cross-border trade in services under Chapter 8; 
(b) nothing in this Agreement shall affect th e rights and obligations of the Parties as 
members of the International Monetary Fund  under the Articles of Agreement of the 
International Monetary Fund, as may be amended, including the use of exchange 
actions which are in conformity with the Articles of Agreement of the International 
Monetary Fund, as may be amended; 
(c) notwithstanding subparagraph (b) above, a Pa rty shall not impose restrictions on any 
capital transactions inconsistently with its  obligations regarding such transactions 
under Chapter 8 except under subparagraph (d) below or at the request of the 
International Monetary Fund; 
(d) in the event of serious balance-of-payment s and external financial difficulties or 
threat thereof, a Party may adopt or main tain restrictions on trade in services, 
including on payments or transfers for transactions; 
(e) the restrictions referred to  in subparagraph (d) above: 
(i) shall ensure that the other Party is  treated as favorably as any non-Party; 
(ii) shall be consistent with the Articl es of Agreement of the International 
Monetary Fund, as may be amended; 
(iii) shall avoid unnecessary damage to the commercial, economic and financial 
interests of the other Party;  WT/REG198/1 
 Page 97 
 
 
 (iv) shall not exceed those necessary to deal with the circumstances described in 
subparagraph (d) above;  and 
(v) shall be temporary and be phased out progressively as the situation specified 
in subparagraph (d) above improves; 
(f) in determining the incidence of such rest rictions referred to in subparagraph (d) 
above, a Party may give priority to the supply of services which are more essential to 
their economic or development programs.  Ho wever, such restrictions shall not be 
adopted or maintained for the purpose of protecting a particular service sector;  and 
(g) any restrictions adopted or maintained unde r subparagraph (d) above, or any changes 
therein, shall be promptly notified to the other Party. 
CHAPTER 18:  FINAL PROVISIONS 
Article 172 
Table Of Contents And Headings  
The table of contents and the headings of the Chapters, Sections and Articles of this 
Agreement are inserted for convenience of reference onl y and shall not affect the interpretation of this 
Agreement.  
Article 173 
Annexes And Notes  
The Annexes and Notes to this Agreement shall c onstitute an integral part of this Agreement. 
Article 174 
Amendment  
1. Unless otherwise provided for in this Agreem ent, this Agreement may be amended by 
agreement between the Parties.  Such amendment sh all be approved by the Parties in accordance with 
their respective legal procedures.  Such amendment sh all enter into force on the thirtieth day after the 
date of exchange of diplomatic  notes indicating such approval. 
2. Any amendment to this Agreement shall constitu te an integral part of this Agreement. 
Article 175 
Entry Into Force  
This Agreement shall enter into force on the thirtieth day after the date on which the 
Government of Japan and the Govern ment of Mexico exchange diplom atic notes informing each other 
that their respective legal proce dures necessary for entry into force of this Agreement have been 
completed.  It shall remain in force unless te rminated as provided for in Article 176 below. WT/REG198/1 
Page 98  
 
 Article 176 
Termination
 
Either Party may terminate this Agreement by giving one year’s advance notice in writing to 
the other Party. 
Article 177 
Authentic Texts  
1. The texts of this Agreement in the Japanese, Spanish and English langua ges shall be equally 
authentic.  In case of differences of interpre tation, the English text shall prevail.  
2. Notwithstanding paragraph 1 above: 
(a) Section 2 of Annex 1 is written in the Japanese and English languages, such texts 
being equally authentic;  and 
(b) Section 3 of Annex 1 is written in the Sp anish and English languages, such texts 
being equally authentic. 
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective 
Governments, have si gned this Agreement. 
DONE at Mexico City, on this seventeenth day of September, 2004, in duplicate. 
FOR JAPAN:  FOR THE UNITED MEXICAN STATES: 
小泉純一郎 Fox 
__________