Trans-Pacific Partnership Agreement

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CHAPTER 1 
 
INITIAL PROVISIONS AND GENERAL DEFINITIONS 
 
 
Section A:  Initial Provisions 
 
Article 1.1:  Establishment of a Free Trade Area 
 
 
The Parties, consistent with Article XXIV of GATT 1994 and Article V of 
GATS, hereby establish a free trade area in accordance with the provisions of this 
Agreement. 
 
 
Article 1.2:  Relation to Other Agreements 
 
1. 
Recognising the Parties’ intention for this Agreement to coexist with their 
existing international agreements, each Party affirms: 
 
(a) 
in relation to existing international agreements to which all Parties 
are party, including the WTO Agreement, its existing rights and 
obligations with respect to the other Parties; and 
 
(b) 
in relation to existing international agreements to which that Party 
and at least one other Party are party, its existing rights and 
obligations with respect to that other Party or Parties, as the case 
may be. 
 
2. 
If a Party considers that a provision of this Agreement is inconsistent with 
a provision of another agreement to which it and at least one other Party are party, 
on request, the relevant Parties to the other agreement shall consult with a view to 
reaching a mutually satisfactory solution.  This paragraph is without prejudice to a 
Party’s rights and obligations under Chapter 28 (Dispute Settlement).1 
 
 
                                                 
1
  For the purposes of application of this Agreement, the Parties agree that the fact that an 
agreement provides more favourable treatment of goods, services, investments or persons than that 
provided for under this Agreement does not mean that there is an inconsistency within the meaning 
of paragraph 2. 
 
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Section B:  General Definitions 
 
Article 1.3:  General Definitions 
 
 
For the purposes of this Agreement, unless otherwise provided in this 
Agreement: 
 
AD Agreement means the Agreement on Implementation of Article VI of the 
General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO 
Agreement; 
 
Agreement means the Trans-Pacific Partnership Agreement; 
 
APEC means Asia-Pacific Economic Cooperation; 
 
central level of government has for each Party the meaning set out in Annex 1-A 
(Party-Specific Definitions); 
 
Commission means the Trans-Pacific Partnership Commission established under 
Article 27.1 (Establishment of the Trans-Pacific Partnership Commission); 
 
covered investment means, with respect to a Party, an investment in its territory 
of an investor of another Party in existence as of the date of entry into force of this 
Agreement for those Parties or established, acquired, or expanded thereafter; 
 
customs administration means the competent authority that is responsible under 
the laws of a Party for the administration of customs laws, regulations and, where 
applicable, policies, and has for each Party the meaning set out in Annex 1-A 
(Party-Specific Definitions); 
 
customs duty includes any duty or charge of any kind imposed on or in 
connection with the importation of a good, and any surtax or surcharge imposed 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; 
 
(b) 
fee or other charge in connection with the importation 
commensurate with the cost of services rendered; or  
  
(c) 
antidumping or countervailing duty; 
 
Customs Valuation Agreement means the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs and Trade 1994, set out in Annex 
1A to the WTO Agreement;  
 
days means calendar days;  
 
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enterprise means any entity constituted or organised under applicable law, 
whether or not for profit, and whether privately or governmentally owned or 
controlled, including any corporation, trust, partnership, sole proprietorship, joint 
venture, association or similar organisation;  
 
existing means in effect on the date of entry into force of this Agreement; 
 
GATS means the General Agreement on Trade in Services, set out in Annex 1B 
to the WTO Agreement; 
 
GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in 
Annex 1A to the WTO Agreement; 
 
goods means any merchandise, product, article or material; 
 
goods of a Party means domestic products as these are understood in GATT 1994 
or such goods as the Parties may agree, and includes originating goods of a Party; 
 
government procurement means the process by which a government obtains the 
use of or acquires goods or services, or any combination thereof, for governmental 
purposes and not with a view to commercial sale or resale or use in the production 
or supply of goods or services for commercial sale or resale;  
 
Harmonized System (HS) means the Harmonized Commodity Description and 
Coding System, including its General Rules of Interpretation, Section Notes, 
Chapter Notes and Subheading Notes as adopted and implemented by the Parties 
in their respective laws;  
 
heading means the first four digits in the tariff classification number under the 
Harmonized System; 
 
measure includes any law, regulation, procedure, requirement or practice; 
 
national means a “natural person who has the nationality of a Party” according to 
Annex 1-A (Party-Specific Definitions) or a permanent resident of a Party; 
 
originating means qualifying as originating under the rules of origin set out in 
Chapter 3 (Rules of Origin and Origin Procedures) or Chapter 4 (Textile and 
Apparel Goods); 
 
Party means any State or separate customs territory for which this Agreement is 
in force;   
 
person means a natural person or an enterprise; 
 
person of a Party means a national or an enterprise of a Party; 
 
 
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preferential tariff treatment means the customs duty rate applicable to an 
originating good, pursuant to each Party’s Tariff Schedule set out in Annex 2-D 
(Tariff Commitments);  
 
recovered material means a material in the form of one or more individual parts 
that results from:  
 
(a) 
the disassembly of a used good into individual parts; and 
 
(b) 
the cleaning, inspecting, testing or other processing of those parts 
as necessary for improvement to sound working condition; 
 
remanufactured good means a good classified in HS Chapters 84 through 90 or 
under heading 94.02 except goods classified under HS headings 84.18, 85.09, 
85.10, and 85.16, 87.03 or subheadings 8414.51, 8450.11, 8450.12, 8508.11, and 
8517.11, that is entirely or partially composed of recovered materials and: 
 
(a) 
has a similar life expectancy and performs the same as or similar to 
such a good when new; and 
 
(b) 
has a factory warranty similar to that applicable to such a good 
when new; 
 
regional level of government has for each Party the meaning set out in Annex 1-
A (Party-Specific Definitions); 
 
Safeguards Agreement means the Agreement on Safeguards, set out in Annex 
1A to the WTO Agreement; 
 
sanitary or phytosanitary measure means any measure referred to in paragraph 
1 of Annex A to the SPS Agreement; 
 
SCM Agreement means the Agreement on Subsidies and Countervailing 
Measures, set out in Annex 1A to the WTO Agreement; 
 
SME means a small and medium-sized enterprise, including a micro-sized 
enterprise;  
 
SPS Agreement means the Agreement on the Application of Sanitary and 
Phytosanitary Measures, set out in Annex 1A to the WTO Agreement; 
 
state enterprise means an enterprise that is owned, or controlled through 
ownership interests, by a Party; 
 
subheading means the first six digits in the tariff classification number under the 
Harmonized System; 
 
 
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territory has for each Party the meaning set out at Annex 1-A (Party-Specific 
Definitions); 
 
textile or apparel good means a good listed in Annex 4-A (Textiles and Apparel 
Product-Specific Rules of Origin); 
 
TRIPS Agreement means the Agreement on Trade-Related Aspects of 
Intellectual Property Rights, set out in Annex 1C to the WTO Agreement;
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WTO means the World Trade Organization; and 
 
WTO Agreement means the Marrakesh Agreement Establishing the World Trade 
Organization, done at Marrakesh on April 15, 1994. 
                                                 
2
  For greater certainty, TRIPS Agreement includes any waiver in force between the Parties of any 
provision of the TRIPS Agreement granted by WTO Members in accordance with the WTO 
Agreement. 
 
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ANNEX 1-A 
 
PARTY-SPECIFIC DEFINITIONS 
 
 
 
Further to Article 1.3 (General Definitions), for the purposes of this 
Agreement, unless provided elsewhere in this Agreement: 
 
central level of government means: 
 
(a) 
for Australia, the Commonwealth Government; 
 
(b) 
for Brunei Darussalam, the national level of government; 
 
(c) 
for Canada, the Government of Canada; 
 
(d) 
for Chile, the national level of government; 
 
(e) 
for Japan, the Government of Japan; 
 
(f) 
for Malaysia, the federal level of government; 
 
(g) 
for Mexico, the federal level of government; 
 
(h) 
for New Zealand, the national level of government; 
 
(i) 
for Peru, the national level of government; 
 
(j) 
for Singapore, the national level of government; 
 
(k) 
for the United States, the federal level of government; and 
 
(l) 
for Viet Nam, the national level of government; 
 
customs administration means: 
 
(a) 
for Australia, the Department of Immigration and Border 
Protection; 
 
(b) 
for Brunei Darussalam, the Royal Customs and Excise Department; 
 
(c) 
for Canada, the Canada Border Services Agency; 
 
(d) 
for Chile, the National Customs Service of Chile (Servicio 
Nacional de Aduanas); 
 
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(e) 
for Japan, the Ministry of Finance; 
 
(f) 
for Malaysia, the Royal Malaysian Customs Department; 
 
(g) 
for Mexico, the Ministry of Finance and Public Credit (Secretaría 
de Hacienda y Crédito Público); 
 
(h) 
for New Zealand, the New Zealand Customs Service;  
 
(i) 
for Peru, the National Superintendence of Customs and Tax 
Administration (Superintendencia Nacional de Aduanas y de 
Administración Tributaria); 
 
(j) 
for Singapore, the Singapore Customs; 
 
(k) 
for the United States, U.S. Customs and Border Protection; and, 
with respect to provisions that concern enforcement, information 
sharing and investigations, this also means U.S. Immigration and 
Customs Enforcement, as applicable; and 
 
(l) 
for Viet Nam, the General Department of Viet Nam Customs, 
 
or any successor of such customs administration; 
 
natural person who has the nationality of a Party means: 
 
(a) 
for Australia, a natural person who is an Australian citizen as 
defined in the Australian Citizenship Act 2007, as amended from 
time to time, or any successor legislation;  
 
(b) 
for Brunei Darussalam, a subject of His Majesty the Sultan and 
Yang Di-Pertuan in accordance with the laws of Brunei 
Darussalam; 
 
(c) 
for Canada, a natural person who is a citizen of Canada under 
Canadian legislation; 
 
(d) 
for Chile, a Chilean as defined in Article 10 of the Political 
Constitution of the Republic of Chile (Constitución Política de la 
República de Chile); 
 
(e) 
for Japan, a natural person who has the nationality of Japan under 
its laws; 
 
(f) 
for Malaysia, a natural person who is a citizen of Malaysia in 
accordance with its laws and regulations; 
 
 
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(g) 
for Mexico, a person who has the nationality of Mexico in 
accordance with its applicable laws; 
 
(h) 
for New Zealand, a natural person who is a citizen as defined in the 
Citizenship Act 1977, as amended from time to time, or any 
successor legislation; 
 
(i) 
for Peru, a natural person who has the nationality of Peru by birth, 
naturalisation or option in accordance with the Political 
Constitution of Peru (Constitución Política del Perú) and other 
relevant domestic legislation; 
 
(j) 
for Singapore, a person who is a citizen of Singapore within the 
meaning of its Constitution and its domestic laws; 
 
(k) 
for the United States, a “national of the United States” as defined in 
the Immigration and Nationality Act; and 
 
(l) 
for Viet Nam, a natural person who is a citizen of Viet Nam within 
the meaning of its Constitution and its domestic laws; 
 
regional level of government means: 
 
(a) 
for Australia, a state of Australia, the Australian Capital Territory, 
or the Northern Territory; 
 
(b) 
for Brunei Darussalam, the term regional level of government is 
not applicable; 
 
(c) 
for Canada, a provincial or territorial government; 
 
(d) 
for Chile, as a unitary Republic, the term regional level of 
government is not applicable; 
 
(e) 
for Japan, the term regional level of government is not applicable; 
 
(f) 
for Malaysia, a State of the Federation of Malaysia in accordance 
with the Federal Constitution of Malaysia; 
 
(g) 
for Mexico, a state of the United Mexican States; 
 
(h) 
for New Zealand, the term regional level of government is not 
applicable; 
 
(i) 
for Peru, regional government in accordance with the Political 
Constitution of Peru (Constitución Política del Perú) and other 
applicable legislation; 
 
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(j) 
for Singapore, the term regional level of government is not 
applicable; 
 
(k) 
for the United States, a state of the United States, the District of 
Columbia, or Puerto Rico; and 
 
(l) 
for Viet Nam, the term regional level of government is not 
applicable; and 
 
territory means: 
 
(a) 
for Australia, the territory of Australia: 
 
(i) 
excluding all external territories other than the Territory of 
Norfolk Island, the Territory of Christmas Island, the 
Territory of Cocos (Keeling) Islands, the Territory of 
Ashmore and Cartier Islands, the Territory of Heard Island 
and McDonald Islands, and the Coral Sea Islands Territory; 
and 
 
(ii) 
including Australia’s air space, territorial sea, contiguous 
zone, exclusive economic zone and continental shelf over 
which Australia exercises sovereign rights or jurisdiction in 
accordance with international law; 
 
(b) 
for Brunei Darussalam, the land territory, internal waters and 
territorial sea of Brunei Darussalam, extending to the air space 
above its territorial sea, as well as to its sea-bed and subsoil over 
which it exercises sovereignty, and the maritime area beyond its 
territorial sea, which has been or may hereafter be designated under 
the laws of Brunei Darussalam in accordance with international law 
as an area over which Brunei Darussalam exercises sovereign 
rights and jurisdiction with respect to the seabed, the subsoil and 
superjacent waters to the seabed and subsoil as well as the natural 
resources; 
 
(c) 
for Canada:  
 
(i) 
the land territory, air space, internal waters and territorial 
seas of Canada; 
 
(ii) 
the exclusive economic zone of Canada, as determined by 
its domestic law, consistent with Part V of the United 
Nations Convention on the Law of the Sea done at Montego 
Bay on December 10, 1982 (UNCLOS); and 
 
(iii) 
the continental shelf of Canada, as determined by its 
 
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domestic law, consistent with Part VI of UNCLOS; 
 
(d) 
for Chile, the land, maritime, and air space under its sovereignty, 
and the exclusive economic zone and the continental shelf within 
which it exercises sovereign rights and jurisdiction in accordance 
with international law and its domestic law; 
 
(e) 
for Japan, the territory of Japan, and all the area beyond its 
territorial sea, including the sea-bed and subsoil thereof, over 
which Japan exercises sovereign rights or jurisdiction in 
accordance with international law including the UNCLOS and the 
laws and regulations of Japan; 
 
(f) 
for Malaysia, its land territory, internal waters and territorial sea, as 
well as any maritime area situated beyond the territorial sea as 
designated or that might in the future be designated under its 
national law, in accordance with international law, as an area 
within which Malaysia exercises sovereign rights and jurisdiction 
with regards to the seabed, subsoil and superjacent waters to the 
seabed and subsoil as well as the natural resources; 
 
(g) 
for Mexico:  
 
(i) 
the states of the Federation and the Federal District; 
 
(ii) 
the islands, including the reefs and keys, in the adjacent 
seas;  
 
(iii) 
the islands of Guadalupe and Revillagigedo, situated in the 
Pacific Ocean; 
 
(iv) 
the continental shelf and the submarine shelf of such 
islands, keys and reefs; 
 
(v) 
the waters of the territorial seas, in accordance with 
international law, and its interior maritime waters; 
 
(vi) 
the space located above the national territory, in accordance 
with international law; and 
 
(vii) 
any areas beyond the territorial seas of Mexico within 
which, in accordance with international law, including the 
United Nations Convention on the Law of the Sea done at 
Montego Bay on December 10, 1982, and its domestic law, 
Mexico may exercise sovereign rights or jurisdiction; 
 
(h) 
for New Zealand, the territory of New Zealand and the exclusive 
 
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economic zone, seabed and subsoil over which it exercises 
sovereign rights with respect to natural resources in accordance 
with international law, but does not include Tokelau; 
 
(i) 
for Peru, the mainland territory, the islands, the maritime areas and 
the air space above them, under sovereignty or sovereign rights and 
jurisdiction of Peru, in accordance with the provisions of the 
Political Constitution of Peru (Constitución Política del Perú) and 
other relevant domestic law and international law; 
 
(j) 
for Singapore, its land territory, internal waters and territorial sea, 
as well as any maritime area situated beyond the territorial sea 
which has been or might in the 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 regards to the sea, the sea-bed, the subsoil and the 
natural resources; 
 
(k) 
for the United States: 
 
(i) 
the customs territory of the United States, which includes 
the 50 states, the District of Columbia, and Puerto Rico; 
 
(ii) 
the foreign trade zones located in the United States and 
Puerto Rico; and 
 
(iii) 
the territorial sea of the United States and any area beyond 
the territorial sea within which, in accordance with 
customary international law as reflected in the United 
Nations Convention on the Law of the Sea, the United 
States may exercise sovereign rights or jurisdiction; and 
 
(l) 
for Viet Nam, the land territory, islands, internal waters, territorial 
sea, and air space above them, the maritime areas beyond territorial 
sea including seabed, subsoil and natural resources thereof over 
which Viet Nam exercises its sovereignty, sovereign rights or 
jurisdiction in accordance with its domestic laws and international 
law. 
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