Panama-Singapore Free Trade Agreement

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Panama-Singapore Free Trade Agreement

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^{FREE TRADE AGREEMENT}

BETWEEN

THE REPUBLIC OF SINGAPORE AND

THE REPUBLIC OF PANAMA

PREAMBLE

The Government of the Republic of Panama and the Government of the

Republic of Singapore (“the Parties”)

Conscious of the friendship and growing economic ties between them; Considering the Joint Press Statement issued on 17 February, 2004, in

Singapore, by Panama’s Vice-President and Singapore’s Minister for Trade and Industry, recording their intention to conclude a bilateral free trade agreement between Panama and Singapore;

Desiring to provide a platform from which to unlock the benefits of deeper economic ties between two strategically located trading centres, each serving the Americas and the Asia-Pacific region;

Desiring to improve the efficiency and competitiveness of their goods and services sectors and to promote and expand trade and investment flows between them;

Desiring to promote greater synergy between their respective economies with complementary strengths in certain sectors;

Recognising that strengthening of their closer economic partnership will bring economic and social benefits and improve living standards;

Building on their rights, obligations and undertakings under the World Trade

Organization, and other multilateral, regional and bilateral agreements;

Considering that the expansion of their domestic market, through economic integration, is vital for accelerating their economic development;

Recognising the need for good corporate governance and a predictable, transparent and consistent business environment to enable business to conduct transactions freely, use resource efficiently and take investment and planning decisions with certainty; and

Conscious that a frameworks of rules for trade in goods, services, and investment will contribute to the promotion of closer links with other economies in the Americas and Asia-Pacific regions;

Have agreed as follows:-

CHAPTER 1

OBJECTIVES, ESTABLISHMENT OF A FREE TRADE AREA AND DEFINITIONS

Article 1.1: Objectives

The objectives of the Parties in concluding this Agreement are:

(a) to establish a free trade area that will promote market opportunities for goods, services and investment between them;

(b) to strengthen the relationship between them, through the conclusion of a free trade agreement, which addresses their economic interest and the evolution of the multilateral trading system;

(c) to establish a cooperative framework for further promote and enhance the economic, trade and investment cooperation between them;

(d) to liberalise and promote trade in goods and services between them and to establish a transparent, predictable and facilitative investment regime;

(e) to improve the efficiency and competitiveness of their goods and services sectors and expand trade and investment between them;

(f) to establish a framework of transparent rules to govern and regulate trade and investment between them;

(g) to maximise opportunities for cooperation between them in logistics sectors and in services, such as telecommunication, maritime and banking;

(h) to promote and facilitate cooperation activities between them;

(i) to facilitate and enhance economic cooperation and integration with other economies in the Americas and the Asia-Pacific region; and

(j) to build upon their commitments at the World Trade Organization, and to support its efforts to create a predictable, and more free and open global trading environment.

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Article 1.2: Establishment of a Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services, hereby establish a free trade area.
The Parties reaffirm their existing rights and obligations with respect to each other under existing bilateral and multilateral agreements to which both Parties are party, including the WTO Agreement.
This Agreement shall not be construed to derogate from any international legal obligations between the Parties that entitles goods or services, or suppliers of goods or services, or investors or investments of investors, to treatment more favourable than that accorded by this Agreement.

Article 1.3: Definitions of General Application

Unless otherwise provided for this Agreement, the following definitions shall apply:

Customs Valuation Agreement means the Agreement on

Implementation of Article VII of the General Agreement on Tariffs and Trade

1994, which is part of the WTO Agreement;

days means calendar days, including weekends and holidays;
enterprise means any entity constituted or organized, under applicable law, whether or not for profit, and whether privately-owned or governmentally- owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
enterprise of a Party means an enterprise constituted or organized, under the law of a Party;
GATS means the General Agreement on Trade in Services, which is part of the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
Goods of a Party means domestic products as these are understood

in the GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party¹;

measure includes any law, regulation, rule, procedure or administrative action adopted or maintained by a Party;

¹For greater certainty, goods and products shall be understood to have the same meaning unless the context otherwise requires.

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national means a natural person who has the nationality of a Party according to Annex 1A;
natural person of a Party means a natural person that resides in the territory of the Party or elsewhere and who under the law of that Party is a national of that Party or has the right of permanent residence in that Party;
originating goods means goods qualifying under the rules of origin set out in Chapter 3 (Rules of Origin);
Party means any country for which this Agreement is in force;
person means a natural person or an enterprise;
person of a Party means a natural person or an enterprise of a Party;
territory means for a Party the territory of that Party as set out in

Annex 1A;

TRIPS Agreement means the Agreement on Trade-Related Aspects of

Intellectual Property which is part of the WTO Agreement; and

WTO Agreement means the Marrakesh Agreement Establishing the

World Trade Organization, done on April 15, 1994.

Article 1.4: Extent of Obligations

Each Party is fully responsible for the observance of all the provisions

of this Agreement.

In fulfilling its obligations and commitments under this Agreement, each Party shall ensure their observance by regional and local governments and authorities in its territory as well as their observance by non-governmental bodies in the exercise of powers delegated by central, regional or local governments and authorities within its territory.

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Annex 1A

Country-Specific Definitions

For purposes of this Agreement, unless otherwise specified:

(1) National means:

(a) with respect to Panama, any person who is a citizen within the meaning of its Constitution and domestic laws; and

(b) with respect to Singapore, any person who is a citizen within the meaning of its Constitution and domestic laws.

(2) Territory means:

(a) with respect to Panama: the land, maritime and air space under its sovereignty, as well as its exclusive economic zone and its continental shelf within which it exercises its sovereign rights and jurisdiction in accordance with international law and its domestic law;

(b) with respect to Singapore: its land territory, internal waters and territorial sea as well as and any maritime area situated beyond the territorial sea which has been or might in future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise sovereign rights or jurisdiction with regard to the sea, sea-bed, the subsoil and the natural resources.

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CHAPTER 2

TRADE IN GOODS

Article 2.1: Scope and Coverage

This Chapter applies to trade in goods of a Party, unless otherwise provided.

Article 2.2: National Treatment

Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes.
To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

Article 2.3: Customs Duties Elimination Schedule

Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods in accordance with Annex 2.3 (Customs Duties Elimination Schedule).
During the customs duties elimination process, the Parties agree to apply to originating goods traded between them, the lesser of the customs duties resulting from a comparison between the rate established in accordance with Annex 2.3 (Customs Duties Elimination Schedule) and the existing rate pursuant to Article II of GATT 1994.
Each Party shall not increase an existing customs duty or introduce a new customs duty on the importation of originating goods from the territory of the other Party.
Upon request by any Party, the Parties shall consult to consider accelerating the elimination of customs duties as set out in Annex 2.3

(Customs Duties Elimination Schedule) or incorporating into one Party’s schedule, goods that are not subject to the elimination schedule. Further

commitments between the Parties to accelerate the elimination of a customs duty on a good or to include a good in Annex 2.3 (Customs Duties Elimination

Schedule) shall supercede any duty rate or staging category determined

pursuant to their Schedules. These commitments shall enter into force on such dates as may be agreed between the Parties after they have exchanged notification certifying that they have completed their necessary internal legal procedures.

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Article 2.4: Export Duties

A Party shall not adopt or maintain any duty, tax or other charge on the exportation of goods to the territory of the other Party, unless such duty, tax or charge is adopted or maintained on any such good when destined for domestic consumption.

Article 2.5: Customs Valuation

The Parties shall determine the customs value of goods traded between them

in accordance with the provisions of Article VII of GATT 1994 and the WTO Agreement on Implementation of Article VII of GATT 1994.

Article 2.6: Customs Processing Fees

After two years of the entry into force of this Agreement, neither Party shall apply an existing customs processing fee, nor shall the Parties adopt new customs processing fees on originating goods from the territory of the other Party.

Article 2.7: Temporary Admission of Goods

Each Party shall grant duty-free temporary admission for the following goods, imported by or for the use of a resident of the other Party:

(a) professional equipment, including software and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade or profession of a business person who qualifies for temporary entry pursuant to the laws of the importing country; and

(b) goods intended for display or demonstration at exhibitions, fairs

similar events, including commercial samples for the solicitation of orders, and advertising firms.

A Party shall not condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that such good:

(a) be used solely by or under the personal supervision of a resident

of the other Party in the exercise of the business activity, trade or profession of that person;

(b) not be sold, leased or consumed while in its territory;

(c) be accompanied by a security in an amount no greater than the charges that would otherwise be owed on entry or final importation releasable upon exportation of the good;

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(d) be capable of identification when exported;

(e) be exported within 3 months or such other period of time as is reasonably related to the purpose of the temporary admission;

(f) be imported in no greater quantity than is reasonable for their intended use; and

(g) be otherwise admissible into the Party’s territory under its laws.

If any condition that a Party imposes under paragraph 2 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on entry or final importation of the good, and any other charges or penalties provided for under its domestic law.
Each Party shall, at the request of the person concerned and for reasons deemed valid by the Customs authorities, extend the time limit for temporary admission beyond the period initially fixed.
Each Party shall permit temporarily admitted goods to be exported through a customs port other than that through which they were imported.
Each Party shall relieve the importer of liability for failure to export a temporarily admitted good under presentation of satisfactory proof to Customs authorities that the good has been destroyed within the original time limit for temporary admission or any lawful extension. Prior approval will have to be sought from the Customs authorities of the importing Party before the good can be destroyed.

Article 2.8: Re-Entry of Repaired or Altered Goods

A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been exported temporarily from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.
A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
For the purposes of this Article:

(a) the repair or alterations shall not destroy the essential characteristics of a good or change it into a different commercial item;

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(b) operations carried out to transform an unfinished good into a finished good shall not be considered repairs or alterations; and

Article 2.9: Non-Tariff Measures

Neither Party shall adopt or maintain any non-tariff measures on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations, or in accordance with other provisions of this Agreement.
Each Party shall ensure the transparency of its non-tariff measures permitted under paragraph 1 and that they are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade between the Parties.

Article 2.10: Subsidies and Countervailing Measures

The Parties agree to prohibit export subsidies on all goods, including agriculture goods.
Notwithstanding paragraph 1, the Parties reaffirm their commitment to abide by the provisions of Article VI and XVI of the GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures, and the WTO Agreement on Agriculture.

Article 2.11: Anti-Dumping

With respect to the application of anti-dumping measures, the Parties reaffirm their commitment to the provisions of the Anti-Dumping Agreement.
Notification procedures shall be as follows:

(a) immediately following the acceptance of a properly documented application from an industry in one Party for the initiation of an anti-dumping investigation in respect of goods from the other Party, the Party that has accepted the properly documented application shall immediately inform the other Party of such acceptance; and

(b) where a Party considers that in accordance with Article 5 of the Anti-Dumping Agreement there is sufficient evidence to justify the initiation of an anti-dumping investigation, it shall give written notice to the other Party in accordance with Article 12.1 of that

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Agreement, and observe the requirements of Article 17.2 of that

Agreement concerning consultations;

At the first session of the Administrative Commission convened pursuant to Article 17.1.3 (Administrative Commission of the Agreement), the Parties shall, in the course of reviewing the general implementation and functioning of this Agreement, consider and review this Article, and shall include a consideration of any recommendation by the WTO Committee on Anti-Dumping Practices.

Article 2.12: Bilateral Safeguard Measures

If as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the one Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the exporting Party constitute a substantial cause

of serious injury to a domestic industry producing a like or directly competitive good of the importing Party, such Party may:

(a) suspend the further reduction of any rate of customs duty on the good provided for under this Agreement; or

(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:

(i) the MFN applied rate of duty on the good in effect at the time the action is taken, or

(ii) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement.

The following conditions and limitations shall apply with regard to an investigation or a measure described in paragraph 1:

(a) a Party shall notify the other Party in writing upon initiation of an investigation described in paragraph 2(c) and shall consult with the other Party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, exchanging views on the measure and reaching an agreement on compensation as set out in paragraph

(b) any safeguard measure shall be taken no later than 1 year after the date of the initiation of the investigation;

(c) a Party shall take a measure only following an investigation by that Party’s competent authorities in accordance with Articles 3

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and 4.2(c) of the Agreement on Safeguards; and to this end, Articles 3 and 4.2(c) of the Agreement on Safeguards are incorporated into and made a part of this Agreement, mutatis mutandis;

(d) in the investigation described in sub-paragraph (c), a Party shall comply with the requirements of Article 4.2(a) of the Agreement on Safeguards; and to this end, Article 4.2(a) is incorporated into and made a part of this Agreement, mutatis mutandis;

(e) no measure may be maintained against a good:

(i) except to the extent and for such time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; and

(ii) for a period exceeding one year, except in the case provided for under paragraph 3; or

(iii) beyond the expiration of the transition period, except with the consent of the Party against whose originating good the measure is taken;

(f) no measure under this Article may be applied more than once against the same good;

(g) where the expected duration of the measure is over one year, the importing Party shall progressively liberalize it at regular intervals during the period of application;

(h) the transition period means two years beginning from the date of entry into force of this Agreement, except where the tariff elimination for the good against which the action is taken occurs over a longer period of time, in which case, the transition period shall be the period of staged tariff elimination for that good; and

(i) on the termination of a safeguard measure, the rate of duty shall immediately be the rate which would have been in effect but for the measure.

If the competent authorities of a Party determine, in conformity with the procedures set out in paragraph 2, that a safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, the Party may extend the application of the safeguard measure for an additional two years.
The Party proposing to take or taking a measure described in paragraph 1 shall endeavour to provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties

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expected to result from the measure. If the Parties are unable to agree on compensation within 30 days from the date the Party announces a decision to take the measure, the Party against whose good the measure is taken may take action having trade effects substantially equivalent to the measure described in paragraph 1. The Party taking the action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects, and in any event, only while the measure under paragraph 1 is being applied.

For the purposes of this Article:

(a) domestic industry means the producers as a whole of the like or directly competitive product operating in the territory of a Party,

or those whose collective output of the like or directly competitive product constitutes a major proportion of the total domestic production of that product;

(b) serious injury means a significant overall impairment in the position of a domestic industry, except that where an originating good is being imported into the territory of a Party in increased quantities relative to domestic production, “serious injury” shall be found to exist only when the difference between the volume of domestic production and the volume of imports of such originating good decreases over three consecutive years; and

Article 2.13: Global Safeguard Measures

Each Party retains its rights and obligations under Article XIX of GATT 1994 and the Agreement on Safeguards. This Agreement does not confer any additional rights or obligations on the Parties with regard to global safeguard measures, except that a Party taking a global safeguard measure may exclude imports of an originating good from the other Party if such imports are not a substantial cause of serious injury or threat thereof.

Article 2.14: Transparency

Article X of GATT 1994 is incorporated into and shall form part of this

Agreement.

Article 2.15: Committee on Trade in Goods and Rules of Origin

The Administrative Commission may establish an ad hoc Committee on

Trade in Goods and Rules of Origin to perform the following functions:

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(a) to oversee and review the implementation of this Chapter and Chapter 3 (Rules of Origin), and to ensure that the benefits of trade arising from these Chapters accrue to both Parties equitably; and

(b) to provide advice to the Parties on matters relating to Trade in Goods and Rules of Origin, which may include identification and recommendation of measures to promote and facilitate improved market access and to accelerate the tariff elimination and reduction process.

Within the scope of this Chapter, if a Party concludes a preferential agreement with a non-Party under Article XXIV of GATT 1994, it shall, upon request from the other Party, afford adequate opportunity to negotiate any additional benefits granted within the Trade in Goods chapter of that preferential agreement.

Article 2.16: Definitions

For the purposes of this Chapter:

Anti-Dumping Agreement means the Agreement on Implementation of

Article VI of GATT 1994, which is part of the WTO Agreement;

customs duties means any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

(a) charge equivalent to an internal tax imposed consistently with

Article III:2 of GATT 1994 in respect of the like domestic good or

in respect of goods from which the imported good has been manufactured or produced in whole or in part;

(b) anti-dumping or countervailing duty that is applied pursuant to a

Party’s domestic law; and

global safeguard measure means a measure applied under Article

XIX of GATT 1994 and the WTO Agreement on Safeguards;

MFN means “most-favoured nation” treatment in accordance with Article

I of GATT 1994; and

Safeguards Agreement means the Agreement on Safeguards, which

is part of the WTO Agreement.

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ANNEX 2.3

CUSTOMS DUTIES ELIMINATION SCHEDULE

FOR PANAMA

Except as otherwise provided for in a Party’s schedule of customs duties elimination, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 2.3 (Customs Duties Elimination Schedule):

(a) customs duties on goods provided for in the items in staging category A shall be eliminated entirely and such goods will be duty-free on the date this Agreement enters into force;

(b) customs duties on goods provided for in the items in staging category B shall be eliminated from base rates in five equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year five;

(c) customs duties on goods provided for in the items in staging category C shall be eliminated from base rates in ten equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year ten;

(d) customs duties on goods provided for in the items in staging category D shall remain at base rates for years one through ten; thereafter, such goods shall be duty-free, effective January 1 of year eleven; and

(e) customs duties on goods provided for in the items in staging category E shall remain at base rates.

Customs duties not higher than those effective April 2005 shall be approved as a base rate when applying the provisions of this Agreement. After the entry into force of this Agreement, if a Party were to lower customs duties below the approved base rate, the new customs duties shall replace the approved base rate as the new base rate. Whereas, if a Party were to raise customs duties above the existing base rate, they shall be no higher than the approved base rate.
For the purpose of the elimination of customs duties in accordance with this note, interim staged rates shall be rounded down, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest 0.001 of the official monetary unit of the Party.
For the purposes of this Annex, year one means 1 July 2006.

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FOR SINGAPORE

Pursuant to Article 2.3 (Customs Duties Elimination Schedule), Singapore shall eliminate customs duties on all originating goods of Panama as of the date of entry into force of this Agreement.

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CHAPTER 3

RULES OF ORIGIN

Section A: Origin Determination

Article 3.1: Originating Goods

For the purposes of this Agreement, goods shall be deemed originating and eligible for preferential treatment if they conform to the origin requirement under any of the following conditions:

(a) goods wholly produced or obtained in the territory of the exporting Party; or

(b) goods not wholly produced or obtained in the territory of the exporting Party, provided that the said goods are eligible under Article 3.3; or

Article 3.2: Wholly Obtained or Produced Goods

Goods wholly obtained or produced entirely in the territory of one or both of the Parties means goods that are:

(a) mineral goods extracted or taken from that Party’s soil, waters, seabed or beneath the seabed;

(b) plants and plant products harvested in the territory of that

Party;

(d) goods obtained from animals referred to in sub-paragraph (c);

(e) goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of that Party;

(f) goods (fish, shellfish, and other marine life) taken from outside its Economic Exclusive Zone as defined in the United Nations Convention on the Law of the Sea by vessels registered, licensed or recorded with a Party, and entitled to fly its flag;

(g) goods produced and/or made on board a factory ship exclusively from products referred to in sub-paragraph (f), provided such factory ship is registered, licensed or recorded with a Party, and entitled to fly its flag;

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(h) goods taken by a Party, or a person of a Party, from the seabed

or beneath the seabed outside its Economic Exclusive Zone, provided that the Party has rights as defined in the United Nations Convention on the Law of the Sea to exploit such seabed;

(i) waste and scrap derived from:

(i) production in the territory of that Party; or

(ii) used goods, collected in the territory of that Party, provided such goods are fit only for the recovery of raw materials;

(j) recovered goods derived in the territory of a Party from used goods; or

(k) a good produced in the territory of that Party exclusively from goods referred to in sub-paragraphs (a) through (j) above, or from their derivatives, at any stage of production.

Article 3.3: Not Wholly Obtained or Produced Goods

For the purposes of this Agreement, a good, which has undergone sufficient production in the territory of a Party, as provided under this Article, shall be treated as an originating good of that Party.
A good is considered to have undergone sufficient production in the territory of a Party if:

(a) it satisfies the product-specific rule as set out in Annex 3A

(Product-Specific Rules); or

(b) where there is no product-specific rule set out in Annex 3A

(Product-Specific Rules), fulfils a qualifying value content of not less than 35% determined in accordance with Article 3.4.

Article 3.4: Qualifying Value Content

For the purpose of Article 3.3, the following formula for qualifying value content shall be applied:

F.O.B. – N.Q.M. x 100% ≥ 35% F.O.B.

where:

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(a) F.O.B. is the Free-On-Board value, which refers to the value of a good payable by the buyer to the seller, regardless of the mode

of shipment, not including any internal excise taxes, reduced, exempted, or repaid when the good is exported; and

(b) N.Q.M. is the non-qualifying value of materials used by the producer in the production of the good, calculated in accordance with paragraph 2.

For the purpose of calculating the non-qualifying value of materials pursuant to paragraph 2(b), the following formula shall be applied:

N.Q.M. = T.V.M. – Q.V.M. where:

(a) T.V.M. is the total value of materials; and

(b) Q.V.M. is the qualifying value of materials, which is the value of the materials that can be attributed to one or both the Parties.

For the purpose of paragraph 2:

(a) The qualifying value of materials shall be:

(i) the total value of the material if the material satisfies the requirements of paragraph 3(b); or

(ii) the value of the material that can be attributed to one or both of the Parties if the material does not satisfy the requirements of paragraph 3(b); and

(b) For the purposes of paragraph 3(a), a material shall be considered to have satisfied the requirements of this paragraph

if:

(i) the content of the value of the material that can be attributed to one or both of the Parties is not less than

35% of the total value of the material; and

(ii) the material has undergone its last production or operation in the territory of either Party.

The value of a material used in the production of a good in the territory

of a Party shall be the C.I.F. value and shall be determined in accordance with the Agreement on Customs Valuation, or if this is not known and cannot be ascertained, the first ascertainable price paid for the material in the Party.

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Article 3.5: De Minimis

A good shall be considered to be an originating good if the value of all non-originating materials used in the production of that good that do not satisfy the requirement of change in tariff classification set out in Annex 3A

(Product-Specific Rules) is not more than ten percent (10%) of the F.O.B. value of the good.

For a good provided for in Chapters 50 through 63 of the Harmonised System, the percentage indicated in the paragraph 1 refers to the weight of fibres or yarns with respect to the weight of the good being produced.
Paragraph 1 does not apply to a non-originating material used in the production of goods provided for in the Harmonised System headings of

04.01, 04.02, 04.06, 09.01, 16.01, 16.02, 17.02, 20.09, 22.02, 23.01 and in the Harmonised System subheadings of 2101.11, 2101.12, and 2103.20 unless the non-originating material is provided for in a different subheading than the good for which origin is being determined under this Article.

Article 3.6: Accumulation

Each Party shall provide that originating goods or materials of a Party, incorporated into a good in the territory of the other Party, shall be considered

to originate in the territory of the other Party.

Each Party shall provide that a good is originating where the good is produced in the territory of one or both Parties at different stages undertaken

by one or more producers, provided that the good satisfies the requirements

in Article 3.2 and all other applicable requirements in this Chapter.

Article 3.7: Accessories, Spare Parts, Tools

Each Party shall provide that accessories, spare parts, or tools delivered with

a good that form part of the good's standard accessories, spare parts, or tools, shall be treated as originating goods if the good is an originating good, and shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, provided that:

(a) the accessories, spare parts, or tools are not invoiced separately from the good;

(b) the quantities and value of the accessories, spare parts, or tools are customary for the good; and

(c) if the good is subject to a qualifying value content, the value of the accessories, spare parts, or tools shall be taken into account

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as originating or non-originating materials, as the case may be,

in calculating the qualifying value content of the good.

Article 3.8: Packaging Materials and Containers for Retail Sale

Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded 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 3A (Product-Specific Rules) and, if the good is subject to a qualifying value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non- originating materials, as the case may be, in calculating the qualifying value content of the good.

Article 3.9: Packing Materials and Containers for Shipment

Each Party shall provide that packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether a good is originating.

Article 3.10: Fungible Goods and Materials

Each Party shall provide that the determination of whether fungible goods or materials are originating goods shall be made either by physical segregation of each good or material or through the use of any inventory management method, such as averaging, last-in, first-out, or first-in, first out, recognized in the generally accepted accounting principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
Each Party shall provide that an inventory management method selected under paragraph 1 for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the person that selected the inventory management method.

Article 3.11: Indirect Materials

Each Party shall provide that an indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good.
For the purposes of this article, 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 operation

of equipment associated with the production of a good, including:

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(a) fuel and energy;

(b) tools, dies, and molds;

(d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings;

(e) gloves, glasses, footwear, clothing, safety equipment and supplies;

(f) equipment, devices, and supplies used for testing or inspecting the goods;

(g) catalysts and solvents; and

(h) 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.

Section B: Consignment Criteria

Article 3.12: Third Country Transportation

A good shall not be considered to be an originating good if the good undergoes subsequent production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good

to the territory of a Party.

Section C: Consultation and Modifications

Article 3.13: Committee on Trade in Goods and Rules of Origin

The Administrative Commission may establish an ad hoc Committee on Trade in Goods and Rules of Origin to perform the following functions:

(a) to oversee and review the implementation of this Chapter and Chapter 2 (Trade in Goods), and to ensure that the benefits of trade arising from these Chapters accrue to both parties equitably;

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(c) review the rules set out in this Chapter as and when necessary upon the request of either Party and make such modifications as may be agreed upon.

Section D: Definitions

Article 3.14: Definitions

For purposes of this Chapter:

aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, etc.;
fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
generally accepted accounting principles means the recognized consensus or substantial authoritative support in the territory of 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 encompass broad guidelines of general application as well as detailed standards, practices, and procedures;
material means a good that is used in the production of another good;
non-originating material means a material that has not satisfied the requirements of this Chapter;
producer means a person who grows, raises, mines, harvests, fishes, traps, hunts, manufactures, processes, assembles or dis-assembles a good;
production means growing, raising, mining, harvesting, fishing, trapping, hunting, manufacturing, processing, assembling or dis-assembling a good;
recovered goods means materials in the form of individual parts that result from:

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(a) the complete disassembly of used goods into individual parts;

and

(b) the cleaning, inspecting, or testing, and as necessary for improvement to sound working condition one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding in order for such parts to be assembled with other parts, including other recovered parts in the production of a remanufactured good;

remanufactured good means an industrial good of Harmonised System Chapters 84, 85, 87, 90 and Harmonised System heading 94.02 that, assembled in the territory of a Party:

(a) is entirely or partially comprised of recovered goods;

(b) has the same life expectancy and meets the same performance standards as a new good; and

used means used or consumed in the production of goods.

Section E: Application and Interpretation

Article 3.15: Application and Interpretation

For purposes of this Chapter:

(a) the basis for tariff classification is the Harmonised Commodity

Description and Coding System;

(b) any cost and value referred to in this Chapter shall be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the Party in which the good is produced.

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CHAPTER 4

CUSTOMS PROCEDURES

Article 4.1: Scope

This Chapter shall apply, in accordance with the Parties’ respective national laws, rules and regulations, to customs procedures required for clearance of goods traded between the Parties.

Article 4.2: General Provisions

The Parties recognise that the objectives of this Agreement may be promoted by the simplification of customs procedures for their bilateral trade.
Customs procedures of both Parties shall conform, where possible, with the standards and recommended practices of the World Customs Organisation.
The Customs administrations of both Parties shall periodically review their customs procedures with a view to their further simplification and the development of further mutually beneficial arrangements to facilitate bilateral trade.

Article 4.3: Publication and Notification

Each Party shall ensure that its laws, regulations, procedures, and administrative rulings governing customs matters are promptly published, either on the internet or in print form.
Each Party shall designate, establish, and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and should make available on the internet information concerning procedures for making such inquiries.
For greater certainty, nothing in this Article or in any part of this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodologies.

Article 4.4: Risk Management

The Parties should adopt risk management approach in its customs activities based on its identified risk of goods in order to facilitate the clearance of low risk consignments, while focusing its inspection activities on high-risk goods.

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The Parties shall exchange information on risk management techniques in the performance of their customs procedures.

Article 4.5: Paperless Trading

The Parties shall endeavour to provide an electronic environment that supports business transactions between their respective customs administration and their trading communities.
The Parties shall exchange views and information on realising and promoting paperless trading between their respective customs administration and their trading communities.
The customs administrations of both Parties, in implementing initiatives which provide for the use of paperless trading, shall take into account the methodologies agreed in the World Customs Organisation.

Article 4.6: Certification of Origin

For the purpose of obtaining preferential tariff treatment in the other Party, a proof of origin in the form of a certification of origin shall be completed and signed by an exporter or producer of a Party, certifying that a good qualifies as an originating good for which an importer may claim preferential treatment upon the importation of the good into the territory of the other Party

(“certification of origin”).

For the purpose of paragraph 1, the Parties shall, by the date of entry into force of this Agreement, agree on a list setting out the data elements required for the certification of origin. Such list may thereafter be revised by mutual consent of the Parties.
The Parties agree that the certification of origin need not be in a prescribed format and the data elements for this certification of origin are those stated in the Annex 4.6.
Each Party shall:

(a) require an exporter in its territory to complete and sign a certification of origin for any exportation of good for which an importer may claim preferential tariff treatment upon importation

of the goods into the territory of the other Party; and

(b) provide that where an exporter in its territory is not the producer

of the good, the exporter may complete and sign a certification of origin on the basis of:

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(i) his knowledge of whether the good qualifies as an originating good;

(ii) his reasonable reliance on the producer's written representation that the good qualifies as an originating good; or

(iii) a completed and signed certification for the good voluntarily provided to the exporter by the producer.

Nothing in paragraph 4 shall be construed to require a producer to provide a certification of origin to an exporter.
Each Party shall provide that a certification of origin that has been completed and signed by an exporter or producer in the territory of the other Party that is applicable to a single importation of a good into the Party’s territory shall be accepted by its customs administration for 12 months from the date on which the certification of origin was signed.
For greater certainty, evaluation of the certification mechanism with the objective of verifying the responsiveness of such mechanism to the interests

of both Parties shall be made by the Administrative Commission established

accordance with Article 17.1 (Administrative Commission of the

Agreement).

Article 4.7: Waiver of Certification of Origin

Provided that the importation does not form part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements, a Party shall provide that a certification of origin shall not be required in the following instances:

(a) importation of goods where the customs value does not exceed

US$1,000 or its equivalent in the currency of the importing Party

or a greater value to be established by the Party, except that it may require that the invoice accompanies a declaration certifying that the good qualifies as an originating good; or

(b) importation of goods for which the importing Party has waived the requirement to present a certification of origin.

Article 4.8: Obligations Relating to Importations

Except as otherwise provided for in this Chapter, each Party shall require an importer who makes a claim for preferential tariff treatment under this Agreement to:

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(a) request preferential tariff treatment at the time of importation of an originating product, whether or not he has a certification of origin;

(b) make a written declaration that the good qualifies as an originating good;

(c) have the certification of origin in its possession at the time that the declaration is made, if it is required by the importing Party's customs administration;

(d) provide an original or a copy of the certification of origin as may be requested by the importing Party's customs administration and, if required by that Customs administration, any other such documentation relating to the importation of the product; and

(e) promptly make a corrected declaration and pay any duties owing where the importer has reason to believe that a certification of origin on which a declaration was based contains information that is not correct, before the competent authority notices the error.

A Party may deny preferential tariff treatment under this Agreement to an imported good if the importer fails to comply with any requirement in this Article.
Each Party shall in accordance with its laws, provide that where a good would have qualified as an originating good when it was imported into the territory of that Party, the importer of the good may, within a period specified

by the importing Party's law, apply for a refund of any excess duties paid as a result of the goods not having been accorded preferential treatment.

Article 4.9: Record Keeping Requirement

Each Party shall provide that an exporter and a producer in its territory that completes and signs a certification of origin shall maintain in its territory, for three years after the date on which the certification of origin was signed or for such longer period as the Party may specify, all records relating to the origin of a good for which preferential tariff treatment was claimed in the territory of the other Party, including records associated with the:

(a) purchase of, cost of, value of, shipping of, and payment for, the good that is exported from its territory;

(b) sourcing of, 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 from its territory; and

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Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into the Party's territory shall maintain in that territory, for three years after the date of importation of the good or for such longer period as the Party may specify, such documentation, including a copy

of the certification of origin, as the Party may require relating to the importation of the good.

The records to be maintained in accordance to paragraphs 1 and 2 shall include electronic records and shall be maintained in accordance with the domestic laws and practices of each Party.

Article 4.10: Origin Verification

For purposes of determining the authenticity and the veracity of the information given in the certification of origin to verify the eligibility of goods for preferential tariff treatment, the importing Party may, through its competent authority, conduct verification by means of:

(a) requests for information from the importer;

(b) request for assistance from the competent authority of the exporting Party as provided for in paragraph 2 below;

(c) written questionnaires to an exporter or a producer in the territory of the other Party through the competent authority;

(d) visits to the premises of an exporter or a producer in the territory

of the other Party, subject to the consent of the exporter or the producer, in accordance with any procedures that the Parties jointly adopt pertaining to the verification; or

(e) such other procedures as the Parties may agree.

For the purpose of paragraph 1(b), the competent authority of the importing Party:

(a) may request the competent authority of the exporting Party to assist it in:

(i) verifying the authenticity of a certification of origin; and /

(ii) verifying the accuracy of any information contained in the certification of origin; and / or

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(iii) conducting in its territory some related investigations or inquiries, and to issue the corresponding reports.

(b) shall provide the competent authority of the other Party with:

(i) the reasons why such assistance is sought;

(ii) the certification of origin, or a copy thereof; and

(iii) any information and documents as may be necessary for the purpose of providing such assistance.

To the extent allowed by its domestic law and practices, the exporting

Party shall co-operate in any action to verify eligibility.

A Party may deny preferential tariff treatment to an imported good where:

(a) the exporter, producer or importer fails to respond to written requests for information or questionnaires within a reasonable period of time; or

(b) after receipt of a written notification for a verification visit agreed upon by the importing and exporting Parties, the exporter or producer does not provide its written consent within a reasonable period of time.

The Party conducting a verification shall, through its competent authority, provide the exporter or producer whose good is the subject of the verification with a written determination of whether the good qualifies as an originating good, including findings of fact and the legal basis for the determination.

Article 4.11: Advance Rulings

Each Party shall provide for the issuance of written advance rulings, prior to the importation of a good into its territory, to an importer of the good in

its territory or to an exporter or producer of the good in the other Party, as to whether the good qualifies as an originating good. The importing Party shall issue its determination regarding the origin of the good within 120 days of an application for advance ruling.

The importing Party shall apply an advance ruling to importation into its territory of the good for which the ruling was issued. The customs administrations of both Parties may establish a validity period for an advance ruling of not less than 2 years from the date of its issuance.
The importing Party may modify or revoke an advance ruling:

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(a) if the ruling was based on an error of fact;

(b) if there is a change in the material facts or circumstances on which the ruling was based;

(d) to conform with a judicial decision or a change in its domestic law.

Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted

in accordance with its terms and conditions.

Notwithstanding paragraph 4, the issuing Party shall postpone the effective date of the modification or revocation of an advance ruling by a period not exceeding 90 days where the person to whom the advance ruling was issued demonstrates that he has relied in good faith to his detriment on that ruling.

Article 4.12: Penalties

Each Party shall maintain criminal, civil or administrative penalties, whether solely or in combination, for violations of its laws and regulations relating to this Chapter.

Article 4.13: Review and Appeal

With respect to determinations relating to eligibility for preferential treatment or advance rulings under this Agreement, each Party shall provide that exporters or producers from the other Party and importers in its territory have access to:

_{(a) at least one level of administrative review of
determinations by}

its customs authorities independent¹of either the official or office responsible for the decision under review; and

(b) judicial review²of decisions taken at the final level of administrative review.

¹_{For greater certainty, it is understood that the level of
administrative review may include the}

_{Ministry supervising the customs administration.}

²The review of the determination or decision taken at the final level of administrative review may take the form of common law judicial review.

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Article 4.14: Confidentiality

Nothing in this Agreement shall be construed to require a Party to furnish or allow access to confidential information, the disclosure of which would impede law enforcement, or be otherwise contrary to the public interest,

or which would prejudice the legitimate commercial interests of particular enterprises, public or private.

Each Party shall maintain, in accordance with its domestic laws, the confidentiality of information collected pursuant to this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the persons providing the information.

Article 4.15: Sharing of Best Practices and Cooperation

The Parties shall facilitate initiatives for the exchange of information on best practices in relation to customs procedures.
Each Party shall notify the other Party of the following determinations, measures and rulings, including to the greatest extent practicable those that are prospective in application:

(a) a determination of origin issued as the result of verification conducted pursuant to Article 4.10, once the petitions of review and appeal referred to in Article 4.13 are exhausted;

(b) a determination of origin that the Party considers contrary to a ruling issued by the customs authority of the other Party with respect to the tariff classification or value of a good, or of materials used in the production of a good;

(c) a measure establishing or significantly modifying an administrative policy that is likely to affect future determinations

of origin; and

(d) an advance ruling or its modification, pursuant to Article 4.11.

The Parties shall endeavour to cooperate in the following aspects:

(a) for purposes of facilitating the flow of trade between their territories, such customs-related matters as the collection and exchange of statistics regarding the importation and exportation

goods and including the exchange of information on originating goods; and

(b) the collection and exchange of documentation on customs procedures.

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ANNEX 4.6

LIST OF DATA ELEMENTS FOR THE CERTIFICATION OF ORIGIN

In accordance with the provision set out in Article 4.6.3, the data elements of the certification of origin are as follows:

Name and address of the exporter or producer:

The full legal name, address (including city and country), telephone number, and email address if applicable of the exporter or producer(s). State whether the exporter is also the producer.

Name and address of the importer:

The full legal name, address (including city and country), telephone number and e-mail address if applicable, of the importer.

Description of goods:

This entails a full description of each good. The description should contain sufficient detail to relate it to the invoice description and to the Harmonised System (HS) description of the good. If the certification covers a single shipment of goods, it should list the quantity and unit of measurement of each good, including the series number, if possible, as well as the invoice number, such as the shipping order number, purchase order number or any other number that can be used to identify the goods.

HS Tariff Classification number:

The HS tariff classification to six digits, or as otherwise specified in the Rules

of Origin, for each good.

Preference Statement:

The exporter or producer of the goods covered by this certification of origin declares that these goods meet the Panama-Singapore Free Trade Agreement Rules of Origin.

Authorised Signature:

This includes the date and signature of the exporter or producer.

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CHAPTER 5

SANITARY AND PHYTOSANITARY MEASURES

Article 5.1: Objectives

The objectives of this Chapter are to protect human, animal, or plant life or health in the territory of the Parties, and to provide a framework to address any bilateral sanitary and phytosanitary matters so as to facilitate and increase trade between the Parties.

Article 5.2: Scope and Coverage

This Chapter applies to all sanitary and phytosanitary measures that may, directly or indirectly, affect trade between the Parties.
For this purpose:

(a) Sanitary or Phytosanitary measure means any measure referred

to in Annex A, paragraph 1 of the WTO Agreement on the

Application of Sanitary and Phytosanitary Measures (“SPS Agreement”);

(b) Trade between the Parties refers to trade in goods produced, processed or manufactured in the territory of the Parties.

This Chapter does not apply to standards, technical regulations and conformity assessment procedures as defined in the WTO Agreement on Technical Barriers to Trade which are covered by Chapter 6 (Technical Barriers to Trade) of this Agreement.

Article 5.3: General Provisions

The Parties affirm their existing rights and obligations with respect to each other under the SPS Agreement.
With a view to facilitating and increasing bilateral trade, the Parties shall seek to enhance their cooperation in the area of sanitary and phytosanitary measures and deepen their mutual understanding and awareness of their respective systems.

Article 5.4: Trade Facilitation

The Parties shall cooperate and jointly identify work in the field of sanitary and phytosanitary measures with a view to facilitating trade between the Parties. In particular, the Parties shall seek to identify initiatives that are appropriate for the particular issues or sectors. Such initiatives may include

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on regulatory issues, such as unilateral recognition of equivalence, harmonisation or other cooperative arrangements.

At the request of the other Party, each Party shall give favourable consideration to any sector-specific proposal that the other Party makes for consideration under this Chapter.

Article 5.5: Coordinators

To facilitate the implementation of this Chapter and cooperation between the Parties, each Party shall designate a Coordinator, who shall be responsible for coordinating with interested persons in the Party’s territory and communicating with the other Party’s Coordinator in all matters pertaining to this Chapter. The Coordinators’ functions shall include:

(a) monitoring the implementation and administration of this

Chapter;

(b) enhancing communication between the Parties’ agencies and ministries with responsibility for sanitary and phytosanitary matters, seeking to facilitate a Party’s response to written requests for information from the other Party in print or electronically without undue delay, and in any case within 30 days after the date of receipt of the request, at no cost or at reasonable cost;

(c) facilitating information exchange so as to enhance mutual understanding of each Party’s sanitary and phytosanitary measures and the regulatory processes that relate to those measures and their impact on trade in such goods between the Parties;

(d) promptly addressing any bilateral sanitary and phytosanitary issue that a Party raises to enhance cooperation and consultation between the Parties to facilitate trade between the Parties;

(e) promoting the use of international standards by both Parties in their respective adoption and application of sanitary and phytosanitary measures;

(f) reviewing progress on addressing sanitary and phytosanitary matters that may arise between the Parties’ agencies and ministries with responsibility for such matters; and

(g) without prejudice to Article 17.1 (Administrative Commission of the Agreement), convening, as necessary and appropriate, an ad hoc technical working group for addressing requests for technical clarification with the objective of identifying practical

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and workable solution that would facilitate trade. Both Parties shall endeavour to convene the ad hoc technical working group without undue delay.

The Coordinators shall normally carry out their functions through agreed communication channels such as telephone, facsimile, emails, whichever is most expedient in the discharge of their functions.

Article 5.6: Final Provisions

Nothing in this Chapter shall limit the authority of a Party to determine the level of protection it considers necessary for the protection of, inter alia, human health or safety, animal or plant life or health or the environment. In pursuance of this, each Party retains all authority to interpret its laws, regulations and administrative provisions.
For the purposes of Article 5.5, the Coordinator for:

(a) Panama shall be:

Ministry of Trade and Industries

Edison Plaza, Ave, Ricardo J. Alfaro, El Paical, 2nd Floor

Panama, Republic of Panama

Tel: (507) 360-0690

Fax : (507) 360-0691

Email: admtratados@mici.gob.pa

(b) Singapore shall be:

Ministry of Trade and Industry, Trade Division,

100 High Street # 09-01, The Treasury, Singapore 179434, Republic of Singapore Tel: (65) 6225 9911

Fax: (65) 6332 7260

Email: mti_fta@mti.gov.sg

or their successors or designated contact points.

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CHAPTER 6

TECHNICAL BARRIERS TO TRADE

Article 6.1: Objective and Scope

The objective of this Chapter is to provide a framework to address the impact of technical barriers to trade between the Parties.
For this purpose, technical barriers to trade shall cover all standards, technical regulations and conformity assessment procedures that may directly

or indirectly affect trade in goods and / or assessments of manufacturers or manufacturing processes of goods traded between the Parties.

Standards, technical regulations and conformity assessment procedures shall have the meanings assigned to those terms in Annex 1 of the WTO Agreement on Technical Barriers to Trade (“TBT Agreement”).

Article 6.2: Coverage

The Parties affirm their existing rights and obligations under the TBT Agreement.
The Parties additionally affirm their commitment to the modalities whichever is most expedient in the framework as set out in this Chapter so as

facilitate and increase trade in goods and / or assessments of manufacturers or manufacturing processes of goods traded between the Parties.

This Chapter does not apply to sanitary and phytosanitary measures as defined in the WTO Agreement on Application of Sanitary and Phytosanitary Measures which are covered by Chapter 5 (Sanitary and Phytosanitary Measures) of this Agreement.
This Chapter applies to all goods and/or assessments of manufacturers

or manufacturing processes of goods traded between the Parties, regardless

of the origin of those goods, unless otherwise specified by a Party under the modalities in this framework.

Article 6.3: International Standards

Consistent with Article 2.4 of the TBT Agreement, each Party shall use,

to the maximum extent possible, relevant international standards as a basis for its technical regulations.

In determining whether an international standard, guide, or recommendation within the meaning of Articles 2, 5 and Annex 3 of the TBT Agreement exists, each Party shall apply the principles set out in Decisions

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and Recommendations adopted by the Committee since 1 January 1995, G/TBT/1/Rev.8, 23 May 2002, Section IX (Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the TBT Agreement) issued by the WTO Committee on Technical Barriers to Trade.

Article 6.4: Trade Facilitation

The Parties shall cooperate and jointly identify work in the field of standards, technical regulations, and conformity assessment procedures, with

a view to facilitating market access. In particular, the Parties shall seek to identify initiatives that are appropriate for the particular issues or sectors. Such initiatives may include cooperation on regulatory issues, such as unilateral recognition or harmonisation of technical regulations and standards, alignment to international standards, reliance on a supplier’s declaration of conformity, and use of accreditations to qualify conformity assessment bodies.

At the request of the other Party, each Party shall encourage non- governmental bodies in its territory to cooperate with the non-governmental bodies in the territory of the other Party with respect to particular standards or conformity assessment procedures.

Article 6.5: Conformity Assessment Procedures

The Parties recognise that a broad range of mechanisms exists to facilitate the acceptance of conformity assessment results, including:

(a) the importing Party’s reliance on a supplier’s declaration of conformity;

(b) voluntary arrangements between conformity assessment bodies from each Party’s territory;

of conformity assessment procedures with respect to specified regulations conducted by bodies located in the territory of the other Party;

(d) accreditation procedures for qualifying conformity assessment bodies;

(e) government designation of conformity assessment bodies; and

(f) recognition by one Party of the results of conformity assessment procedures performed in the other Party’s territory on a unilateral basis for a sector nominated by that Party.

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To this end, the Parties shall intensify their exchange of information on the variety of mechanisms to facilitate the acceptance of conformity assessment results or certification.
Where a Party does not accept the results of a conformity assessment procedure performed in the territory of the other Party, it shall, on request of the other Party, explain its reasons.
Each Party shall accredit, approve, license, or otherwise recognise conformity assessment bodies in the territory of the other Party on terms no less favourable than those it accords to conformity assessment bodies in its territory. If a Party accredits, approves, licenses, or otherwise recognises a body assessing conformity with a particular technical regulation or standard in

its territory and it refuses to accredit, approve, license, or otherwise recognise

a body assessing conformity with that technical regulation or standard in the territory of the other Party, it shall, on request, explain the reasons for its refusal.

Where a Party declines a request from the other Party to engage in or conclude negotiations to reach agreement on facilitating recognition in its territory of the results of conformity assessment procedures conducted by bodies in the territory of the other Party, it shall, on request, explain its reasons. The Parties may agree to further engagement, including through the possible establishment of an ad hoc working group, as provided for in Article

17.1 (Administrative Commission of the Agreement)

Article 6.6: Equivalence of Standards and Technical Regulations

Each Party shall give favourable consideration to accepting as equivalent the standards and technical regulations of the other Party, even if they differ from its own standards and technical regulations, provided that the said standards and technical regulations produce the outcomes equivalent to those produced by its own standards and technical regulations, with both meeting the legitimate objective or achieve the same level of protection.
Where a Party does not accept a standard and technical regulation of the other Party as equivalent to its own standard and technical regulation, it shall, at the request of the other Party, explain the reasons for not accepting the said standard and regulation as equivalent. The Parties may agree to further engagement on accepting equivalence of particular standard and technical regulations, including through the possible establishment of an ad hoc working group, as provided for in Article 17.1 (Administrative Commission

of the Agreement).

No Party may have recourse to the provisions for Dispute Settlement under Chapter 15 (Dispute Settlement) of this Agreement for any matter related to this Chapter.

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Article 6.7: Information Exchange

Each Party shall respond expeditiously to any enquiry from the other Party on standards, technical regulations or conformity assessment procedures relating

to any good and / or assessments of manufacturers or manufacturing processes of goods traded between the Parties. Any information or explanation that is provided shall be given in print or electronically.

Article 6.8: Confidentiality

Nothing in this Chapter shall be construed to require either Party to furnish or allow access to information the disclosure of which it considers would:

(a) be contrary to its essential security interests;

(b) be contrary to the public interest as determined by its domestic laws, regulations and administrative provisions;

(c) be contrary to any of its domestic laws, regulations and administrative provisions including but not limited to those protecting personal privacy or the financial affairs and accounts

of individual customers of financial institutions;

(d) impede law enforcement; or

(e) prejudice legitimate commercial interests of particular public or private enterprises.

In pursuance to Articles 6.5, 6.6, 6.7 and 6.9, a Party shall, in accordance with its applicable laws, protect the confidentiality of any proprietary information disclosed to it.

Article 6.9: Coordinators

To facilitate the implementation of this Chapter and cooperation between the Parties, each Party shall designate a Coordinator, who shall be responsible for coordinating with interested persons in the Party’s territory and communicating with the other Party’s Coordinator in all matters pertaining to this Chapter. The Coordinators’ functions shall include:

(a) monitoring the implementation and administration of this

Chapter;

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(b) promptly addressing any issue that a Party raises related to the development, adoption, application, or enforcement of standards, technical regulations or conformity assessment procedures;

(c) enhancing cooperation in the development and improvement of standards, technical regulations, and conformity assessment procedures;

(d) exchanging information on standards, technical regulations, and conformity assessment procedures, in response to all reasonable requests for such information from a Party;

(e) considering and facilitating any sector-specific proposal a Party makes for further cooperation among governmental and non- governmental conformity assessment bodies;

(f) facilitating the consideration of a request by a Party for the recognition of the results of conformity assessment procedures, including a request for the negotiation of an agreement, in a sector nominated by that Party;

(g) facilitating cooperation in the areas of specific technical regulations by referring enquiries from a Party to the appropriate regulatory authorities;

(h) promptly consulting on any matter arising under this Chapter upon request by a Party; and

(i) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments.

The Coordinators shall normally carry out their functions through agreed communication channels such as telephone, facsimile, emails, whichever is most expedient in the discharge of their functions.

Article 6.10: Final Provisions

Nothing in this Chapter shall limit the authority of a Party to determine the level of protection it considers necessary for the protection of, inter alia, human health or safety, animal or plant life or health or the environment. In pursuance of this, each Party retains all authority to interpret its laws, regulations and administrative provisions.
For the purposes of Article 6.9, the Coordinator for:

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(a) Panama shall be:

Ministry of Trade and Industries

Edison Plaza, Ave, Ricardo J. Alfaro, El Paical, 2nd Floor

Panama, Republic of Panama

Tel: (507) 360-0690

Fax: (507) 360-0691

Email: admtratados@mici.gob.pa

(b) Singapore shall be:

Ministry of Trade and Industry, Trade Division,

100 High Street # 09-01, The Treasury, Singapore 179434, Republic of Singapore Tel: (65) 6225 9911

Fax: (65) 6332 7260

Email: mti_fta@mti.gov.sg

or their successors or designated contact points.

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CHAPTER 7

COMPETITION POLICY

Article 7.1: Anti-competitive Business Conduct

Each Party shall endeavour to adopt or maintain competition laws to proscribe anti-competitive business conduct, with the objective of promoting economic efficiency and consumer welfare, and shall take appropriate action with respect to such conduct. The Parties recognize that undertaking these obligations will enhance the fulfilment of the objectives of this Agreement. Anti-competitive business conduct includes, but is not limited to:

(a) anti-competitive horizontal arrangements between competitors;

(b) misuse of market power, including predatory pricing by businesses;

(d) anti-competitive mergers and acquisitions.

Each Party shall maintain an authority responsible for the enforcement

of its national competition laws. The enforcement policy of each Party’s national competition authority is not to discriminate on the basis of the nationality of the subjects of their proceedings. Each Party shall ensure that:

(a) before it imposes a sanction or remedy against any person for violating its competition law, it affords the person the opportunity

to be heard and to present evidence, within a reasonable time;

and

(b) a domestic court or tribunal, at the person’s request, reviews any such sanction or remedy.

Nothing in this Chapter shall be construed to infringe each Party’s autonomy in developing its competition policies or in deciding how to enforce

its competition laws.

The Parties shall ensure the application of the principles of non- discrimination, transparency and due process to the competition measures adopted or maintained according to paragraph 1 and to each Party’s laws and their enforcement.

Article 7.2: Confidentiality

Nothing in this Chapter shall require the provision of information that is:

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(a) classified as confidential by a Party or its competition authority;

(b) contrary to a Party’s laws or policies.

Each Party shall, subject to its laws or policies, maintain the confidentiality of any information communicated to it in confidence by the other Party and oppose any application for disclosure of such information. Any information communicated shall only be used for the purpose of the enforcement action for which it was communicated.

Article 7.3: Cooperation

The Parties agree to cooperate in the area of competition law and policy development by establishing consultation mechanisms and exchanging information. The Parties recognise the importance of cooperation and coordination in order to further effective competition law and policy development in the free trade area, in a manner consistent with their domestic laws, by establishing consultation mechanisms and exchanging information.

Article 7.4: Transparency and Information Requests

The Parties recognize the value of transparency in government competition policies.
On request, each Party shall make available to the other Party, public information concerning its competition law enforcement activities.
On request, each Party shall make available to the other Party public information concerning exemptions provided under its competition laws. Requests shall specify the particular goods and markets of interest and include an indication whether or not the exemption restricts trade or investment between the Parties.

Article 7.5: Consultations

To foster understanding between the Parties, or to address specific matters that arise under this Chapter, a Party shall, on request of the other Party, enter into consultations. In its request, the requesting Party shall indicate, if relevant, how the matter affects trade or investment between the Parties. The requested Party shall accord full and sympathetic consideration to the concerns of the other Party.

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Article 7.6: Disputes

No Party may have recourse to the provisions for Dispute Settlement under Chapter 15 (Dispute Settlement) of this Agreement for any matter related to this Chapter.

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CHAPTER 8

GOVERNMENT PROCUREMENT

Article 8.1: General

The Parties agree to establish a single government procurement market, in order to maximize competitive opportunities for their suppliers and reduce costs of doing business for both government and the private sectors;
This shall be achieved by the Parties through:

(a) ensuring the opportunity exists for their suppliers to compete on an equal and transparent basis for government procurements;

(b) ensuring the non-application against their suppliers of preferential schemes and other forms of discrimination based on the place of origin of goods and services;

(d) ensuring fair and non-discriminatory processes, and mechanisms to eliminate any potential conflict of interest between persons administering the processes and suppliers participating in the processes.

In the event that a Party makes commitments under agreements relating to government procurement, which both are parties to, which are more favourable to the other Party than the commitments made under Annex

8A, the more favourable offer shall immediately and unconditionally apply.

Article 8.2: Scope and Coverage

This Chapter applies to any law, regulation, procedure or practice regarding any procurement by entities covered by this Chapter as specified in Annex 8A.
This Chapter applies to procurement by any contractual means, including through methods such as purchase or lease, rental or hire purchase, with or without an option to buy, of goods or services, or any combination of goods and services.
No entity shall require institutions not included in Annex 8A to award contracts with the intent of avoiding the obligations of this Chapter.
This Chapter applies to any procurement contract of a value of not less than the relevant threshold specified in Annex 8A.

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This Chapter does not apply to:

(a) non-contractual agreements or any form of governmental assistance, including cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and governmental provision of products and services to persons or governmental authorities not specifically covered under Annex 8A;

(b) purchases funded by loans and grants made to a Party or to an entity of a Party by a person, international entities, associations, international organizations or other States or foreign governments, to the extent that the conditions of such assistance are inconsistent with the provisions of this Chapter. In the case of such inconsistency, the conditions of the assistance shall prevail;

(c) acquisition of fiscal agency services or depository services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt;

(d) hiring of government employees and related employment measures; and

(e) purchases made under exceptionally advantageous conditions which only arise in the very short term. This provision is:

(i) intended to cover unusual disposals by companies which are not normally suppliers, or disposal of assets of businesses in liquidation or receivership; and

(ii) not intended to cover routine purchases from regular suppliers.

No entity may prepare, design or otherwise structure or divide, at any stage of the procurement, any procurement with the intent of avoiding the obligations of this Chapter.
The provisions of this Chapter do not affect the rights and obligations provided for in Chapters 2 (Trade in Goods), 3 (Rules of Origin), 9

(Investment), 10 (Cross-Border Trade in Services) and 11 (Financial

Services).

Nothing in this Chapter shall prevent either Party from modifying its procurement policies, procedures or contractual means, provided they are not inconsistent with this Chapter.

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Article 8.3: National Treatment and Non-Discrimination

With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Chapter, each Party shall provide immediately and unconditionally to the goods, services and suppliers

of the other Party offering such goods and services, treatment no less favourable than that accorded to domestic goods, services and suppliers.

With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Chapter, each Party shall ensure that its entities shall not:

(a) treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; and

(b) discriminate against a locally established supplier on the basis that that the good or services offered by that supplier are goods

or services of the other Party.

The provisions of paragraphs 1 and 2 shall 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 laws, regulations, procedures and practices regarding government procurement covered by this Chapter.

Article: 8.4: Valuation of Contracts

The following provisions shall apply in determining the value of contracts for purposes of implementing this Chapter:

(a) valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable;

(b) the selection of a valuation method by a government body shall not be made, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Chapter; and

(c) in cases where an intended procurement includes option clauses, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of optional purchases.

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Article 8.5: Rules of Origin

A Party shall not apply rules of origin to goods supplied for purposes of government procurement covered by this Chapter from the other Party, which are different from the rules of origin applied in the normal course of trade and

at the time of the transaction in question to supplies of the same goods from that other Party.

Article 8.6: Offsets

Entities shall not, in the course of a procurement, impose, seek or consider offsets.

Article 8.7: Publication of Procurement Measures

Each Party shall promptly publish any law and regulation and the modifications thereof, and make publicly available any judicial decision and administrative ruling of general application and procedure specifically governing procurement covered by this Chapter in publicly accessible media.
Upon the request of a Party, the other Party will provide a copy of a judicial decision or administrative ruling of general application and procedure relating to procurement.

Article 8.8: Publication of Notice of Intended Procurement

Except as otherwise provided for in Article 8.13 (Limited Tendering Procedures), procuring entities shall publish a notice inviting interested suppliers to submit tenders for each procurement covered by this Chapter. This notice shall be published in publicly accessible media and made accessible during the entire period established for tendering for the relevant procurement.
Each notice of intended procurement shall include a description of the intended procurement, any conditions that suppliers must fulfill to participate

in the procurement, the name of the entity issuing the notice, the address where suppliers may obtain all documents relating to the procurement, the time limits and address for submission of tenders and the delivery dates of the goods or services to be procured.

Article 8.9: Time Limits for the Tendering Processes

An entity shall prescribe time limits for the tendering process that allows sufficient time for suppliers to prepare and submit responsive tenders, taking into account the nature and complexity of the procurement. An entity

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shall provide no less than 30 days between the date on which it publishes the notice of intended procurement and the deadline for submitting tenders.

Notwithstanding paragraph 1, an entity may establish a time period of less than 30 days, provided that the time period is sufficiently long to enable suppliers to prepare and submit responsive tenders and shall in no case be less than five working days, where the procurement is published by the entity

by electronic means.

Article 8.10: Tender Documentation

An entity shall provide interested suppliers with tender documentation that includes all the information necessary to permit suppliers to prepare and submit responsive tenders. The documentation shall include all the criteria that the entity will consider in awarding the contract, including all cost factors, and the weights or, where appropriate, the relative values that the entity will assign to these criteria in evaluating tenders.
An entity shall endeavour to make available relevant tender documentation on the internet or a comparable publicly available computer- based telecommunications network openly accessible to all suppliers. Where an entity does not publish all the tender documentation by electronic means, the entity shall, on request of a supplier, promptly make the documentation available in written form to the supplier.
Where an entity, during the course of a procurement, modifies the criteria referred to in paragraph 1, it shall transmit all such modifications in writing or by electronic means:

(a) to all suppliers that are participating in the procurement at the time the criteria was modified, if the identities of such suppliers are known, and in all other cases, in the same manner the original information was transmitted; and

(b) in adequate time to allow such suppliers to modify and re-submit their tenders, as appropriate.

Article 8.11: Technical Specifications

Technical specifications laying down the characteristics of the goods or services to be procured shall not be prepared, adopted or applied with a view to, or with the effect of creating unnecessary obstacles to trade among the Parties.
Technical specifications prescribed by an entity shall, where appropriate, be:

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(a) in terms of performance requirements rather than design or descriptive characteristics; and

(b) based on international standards, where applicable; otherwise, on recognised national standards.

There shall be no requirement or reference to a particular trademark or trade name, patent, design or type, specific origin or producer or supplier unless there is no sufficiently precise or intelligible way of otherwise describing the procurement requirements and provided that, in such cases, words such as “or equivalent” are included in the tender documentation.
Entities shall not seek or accept, in a manner that would have the effect

of precluding competition, advice that may be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in that procurement.

Article 8.12: Registration and Qualification of Suppliers

In the process of registering and / or qualifying suppliers, the entities of

a Party shall not discriminate between domestic suppliers and suppliers of the other Party.

Any conditions for participation in open tendering procedures shall be no less favourable to suppliers of the other Party than to domestic suppliers.
The process of, and the time required for, registering and / or qualifying suppliers shall not be used in order to keep suppliers of the other Party off a list of suppliers or from being considered for a particular procurement.
Entities maintaining permanent lists of registered and / or qualified suppliers shall ensure that suppliers may apply for registration or qualification

at any time, and that all registered and qualified suppliers are included in the lists within a reasonably short time.

Nothing in this Article shall preclude an entity from excluding a supplier from a procurement on grounds such as bankruptcy or false declaration, provided that such an action is consistent with the national treatment provisions of this Chapter.

Article 8.13: Limited Tendering Procedures

Entities shall award contracts by means of open tendering procedures,

in the course of which any interested supplier may submit a tender.

Provided that the tendering procedure is not used to avoid competition

or to protect domestic suppliers, entities may award contracts by means other

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than open tendering procedures in the following circumstances, where applicable:

(a) in the absence of tenders that conform to the essential requirements in the tender documentation provided in a prior invitation to tender, including any conditions for participation, on condition that the requirements of the initial procurement are not substantially modified in the contract as awarded;

(b) where, for works of art, or for reasons connected with the protection of exclusive rights, such as patents or copyrights, or proprietary information, or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;

(c) for additional deliveries by the original supplier that are intended either as replacement parts, extensions, or continuing services for existing equipment, software, services or installations, where

a change of supplier would compel the entity to procure goods

or services not meeting requirements of inter-changeability with existing equipment, software, services, or installations;

(d) for goods purchased on a commodity market;

(e) where an entity procures a prototype or a first good or service that is developed at its request in the course of, and for, a particular contract for research, experiment, study or original development. When such contracts have been fulfilled, subsequent procurements of such goods or services shall be subject to the principles and procedures laid down in this Chapter;

(f) where additional construction services that were not included in the initial contract but that were within the objectives of the original tender documentation have, due to unforeseeable circumstances, become necessary to complete the construction services described therein. However, the total value of contracts awarded for additional construction services may not exceed 50 percent of the amount of the initial contract;

(g) for new construction services consisting of the repetition of similar construction services which conform to a basic project for which an initial contract was awarded in accordance with Articles 8.3 to 8.12;

(h) in so far as is strictly necessary where, for reasons of urgency brought about by events unforeseeable by the entity, the goods

or services could not be obtained in time by means of an open tendering procedure and the use of an open tendering

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procedure would result in serious injury to the entity, or the entity's program responsibilities, or the Party; or

(i) in the case of contracts awarded to the winner of a design contest provided that the contest has been organized in a manner which is consistent with the principles of this Chapter. The contest shall be judged by an independent jury with a view

to design contracts being awarded to the winners.

An entity shall maintain a record for a period of at least one year from the date of the award of a contract, or prepare a written report on the contract awarded under these provisions, containing the name of the entity, the value and kind of goods or services procured, country of origin and the specific justifications for use of tender procedures other than open tendering procedures, as provided in paragraph 2.

Article 8.14: Information on Awards

Subject to Article 8.20 (Non-Disclosure of Information), an entity shall promptly inform suppliers participating in a tendering procedure of its contract award decision. The award notice should include at least the following information:

(a)	the name of the entity;
(b)	a description of the goods or services procured;
(c)	the name of the winning supplier;
(d)	the value of the contract award; and
(e)	where the entity has not used open tendering procedure,	an

indication of the circumstances according to Article 8.13 (Limited

Tendering Procedures) justifying the procedures used.

Entities shall, on request from an unsuccessful supplier of the other Party which participated in the relevant tender, promptly provide pertinent information concerning reasons for the rejection of its tender, unless the release of such information 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.

Article 8.15: Modifications and Rectifications to Coverage

When an entity or party thereof listed in Annex 8A is corporatised or privatized as a legal entity separate and distinct from the Government of a Party, regardless of whether or not the Government holds any shares in such

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a legal entity, this Chapter shall no longer apply to that entity or the party thereof that is so corporatised or privatized. A Party shall notify the other Party

of the name of such an entity before it is corporatised or privatized or as soon

as possible thereafter. The Parties agree that no claim for compensatory adjustments shall be made in all such cases.

A Party may make technical rectifications of a purely formal nature to

its coverage under this Chapter, or minor amendments to its schedules in Annex 8A to this Chapter, provided that it notifies the other Party in writing and that the other Party does not object in writing within 30 days of the notification. For such technical rectifications or minor amendments, no compensatory adjustments need to be provided to the other Party.

Article 8.16: Transparency

The Parties shall apply all procurement laws, regulations, procedures and practices consistently, fairly and equitably so that their corporate governance structures provide transparency to potential suppliers.

Article 8.17: Electronic Procurement

The Parties shall, within the context of their commitment to promote electronic commerce, seek to provide opportunities for government procurement to be undertaken through electronic means, hereinafter referred

to as “e-procurement”.

Each Party shall work toward a single entry point for the purpose of enabling suppliers to access information on procurement opportunities in its territory.
Each Party shall endeavour to make procurement opportunities that are available to the public accessible to suppliers via the Internet or any publicly available electronic medium. Each Party shall endeavour to make available relevant documentation by the same means.
Each Party shall encourage its entities to publish, as early as possible

in the fiscal year, information regarding the entity’s indicative procurement plans in the e-procurement portal.

Article 8.18: Challenge Procedures

In the event of a complaint by a supplier of a Party that there has been

a breach of this Chapter in the context of procurement by an entity of the other Party, that Party shall encourage the supplier to seek resolution of its complaint in consultation with the entity of the other Party. In such instances the entity of the other Party shall accord timely and impartial consideration to

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any such complaint, in such a manner that is not prejudicial to obtaining corrective measures under the challenge system.

Each Party shall provide suppliers of the other Party with non- discriminatory, timely, transparent and effective procedures, consistent with the principle of due process, to challenge alleged breaches of this Chapter arising in the context of procurements in which they have, or have had, an interest.
Each Party shall provide its challenge procedures in writing and make them generally available. An entity’s total liability under these procedures for any breach of this Chapter or compensation for loss or damages suffered shall be limited to the costs for tender preparation reasonably incurred by the supplier for the purpose of the procurement.

Article 8.19: Exceptions

Nothing in this Chapter shall be construed to prevent any Party from taking any action or not disclosing any information which it considers necessary for the protection of its essential security interests relating to procurement indispensable for national security or for national defence purpose.
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail or a disguised restriction on international trade, nothing in this Chapter shall be construed to prevent any Party from imposing or enforcing measures:

(a) necessary to protect public morals, order or safety;

(b) necessary to protect human, animal or plant life or health;

(d) relating to the products or services of handicapped persons, of philanthropic institutions or of prison labour.

Article 8.20: Non-Disclosure of Information

The Parties, their entities, and their review authorities shall not disclose confidential information, if such disclosure would prejudice the legitimate commercial interests of a particular person or might prejudice fair competition between suppliers, without the formal authorisation of the person that provided such information to the Party.

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Nothing in this Chapter shall be construed as requiring a Party or its entities to disclose confidential information, if such disclosure would impede law enforcement or otherwise be contrary to the public interest.

Article 8.21: Cooperation

The Parties agree make available information and share best practices relating to government procurement, including the development and use of electronic means in government procurement systems.

Article 8.22: Definitions

For purposes of this Chapter:

1.	entity means an entity of a Party listed in Annex 8A;
2.	offsets means measures used to encourage local development	or

improve the balance-of-payments accounts by means of domestic content, licensing of technology, investment requirements, counter-trade or similar requirements;

publish means to disseminate information in an electronic or paper medium that is distributed widely and is readily accessible to the general public; and
supplier means a person that has provided, provides or could provide goods or services to an entity.

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ANNEX 8A GOVERNMENT PROCUREMENT

Section A: Central Level of Government Entities

This Chapter applies to the entities of the central level of government listed in this Section, where the value of the procurement is estimated to equal

or exceed the following relevant threshold, for procurement of:

(a)	Goods and Services:	SDR	130,000; and
(b)	Construction services:	SDR	5,000,000.

Unless otherwise specified, this Chapter covers all agencies

subordinate to the entities listed in each Party’s Schedule.

Schedule of Panama

Asamblea Legislativa

Contraloría General de la República Ministerio de Comercio e Industrias Ministerio de Desarrollo Agropecuario Ministerio de Economía y Finanzas Ministerio de Educación (No