. /.   WORLD TRADE  
ORGANIZATION  WT/REG244/3 
15 October 2009 
 (09-5083) 
Committee on Regional Trade Agreements Original:   English 
  
 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN BRUNEI DARUSSALAM  
AND JAPAN (GOODS AND SERVICES) 
 
Questions and Replies
 
 
 
 The following communication, dated 13 October 2009, is being circulated at the request of the delegations of Japan and Brunei Darussalam.   This document reproduces the follow-up
 questions addressed to the Parties following the 
54th Session of the CRTA and the responses submitted. 
 
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Questions from the Delegation of the United States  
 
1. As follow-up to question 18 on the last page of the Questions and Answers document, 
could Japan please elaborate on the “specific interest and concerns” that necessitated an 
implementation period five years beyond that requires by Brunei? 
Response from Japan  
 
 The negotiations were conducted on product by  product basis rather than modality basis 
(fixing phasing periods of the groups of items as disc ussed in the table III, 1B: Japan).  Therefore, 
“specific interest and concerns” varies from a product to a product. 
 
2. On page 26 of the Factual Presentation, Paragraph 90 notes that Brunei has scheduled a 
non-conforming measure reser vation for national treatment with respect to investment 
activities in “all services sectors on condition th at measures maintained or adopted do not 
constitute a violation of obligations” under the services chapter.  Also, in its Annex 7 schedule, Brunei has replicated the mode 3 limitation in its GATS schedule which specifies that its 
commitments are unbound for “measu res concerning foreign equity  or interest in companies 
established or wishing to establish a commercial presence”. 
 It appears as if the combined effect of th e cited services market access limitation and 
investment reservation are that Brunei has undert aken no mode 3 market access liberalization 
commitments under the Agreement.  Is this  an accurate characterization of  the Agreement’s 
provisions with respect to services supplied through commercial presence? 
 
 
 
   WT/REG244/3 
Page 2  
 
  Response from the Parties
 
 
The investment reservation for services sectors was meant to address the possible overlaps 
and inconsistencies that may arise due to the diffe rent scheduling approaches for the investment and 
services chapters in the Agreement, and is in no way meant to be a carve-out for services 
liberalization. 
 
Brunei Darussalam has in fact made secto r-specific equity commitments under the BJEPA 
in construction and rela ted engineering services, business services, telecommunications and tourism & 
travel-related services, all of which are highli ghted in the report from paragraphs 74 – 79. 
 
 Under its GATS schedule, Brunei specifies th at national treatment for mode 3 is unbound 
except with respect to existing commercial presence , and then lists some nationality and residence 
requirements.  Under the (Brunei-Japan Economic Partnership) Agreement, Brunei has listed no 
limitations under mode 3 except for the following:  registration and/or establishment requirements for 
all forms of legal entity;  more than 50% of the board  of directors must be nationals or residents of 
Brunei; foreigners are not eligible to register for sole proprietorships and; for partnerships, 
applications by foreigners are subject to prio r clearance through the Registrar of Companies. 
 
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