THAILAND-AUSTRALIA
FREE TRADE AGREEMENT

CHAPTER 15
GOVERNMENT PROCUREMENT
ARTICLE 1501
Purpose

The Parties recognise the importance of government procurement to their economies and the importance of covering government procurement in this Agreement at the earliest opportunity.

ARTICLE 1502
Establishment of Working Group

1. A Working Group consisting of government representatives of the Parties having responsibility for government procurement is hereby established.
2. The Working Group shall meet regularly to discuss all relevant issues.
3. The Working Group shall report to the FTA Joint Commission within 12 months of the entry into force of this Agreement with recommendations on the scope for commencing bilateral negotiations to bring government procurement under this Agreement and the coverage of such negotiations.

ARTICLE 1503
Procurement Principles

In preparation for the outcome of the negotiations mandated by Article 1502, the Parties shall, to the extent possible, promote and apply transparency, value for money, open and effective competition, fair dealing, accountability and due process, and non-discrimination in their government procurement procedures.

ARTICLE 1504
Exchange of Information on Government Procurement

The Parties shall, subject to their laws, regulations and policies, exchange information in respect of their government procurement policies and practices.

ARTICLE 1505
Dispute Settlement

Chapter 18 shall not apply to this Chapter unless specifically authorised by the further negotiations mandated by Article 1502.

CHAPTER 16
GENERAL EXCEPTIONS
ARTICLE 1601
General Exceptions

1. For the purposes of Chapters 2 - 7, Article XX of GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis.
2. For purposes of Chapters 8 - 10, Article XIV of GATS is incorporated into and made part of this Agreement, mutatis mutandis.
3. Article XX (e) - (g) of GATT 1994 is incorporated into and made part of Chapter 9, mutatis mutandis.

ARTICLE 1602
Security Exceptions

1. For the purposes of Chapters 2 - 7, Article XXI of GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis.
2. For the purposes of Chapters 8 - 10, Article XIV bis of GATS is incorporated into and made part of this Agreement, mutatis mutandis.

ARTICLE 1603
Disclosure of Information

Nothing in this Agreement shall require a Party to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.

ARTICLE 1604
Balance of Payments

1. In the case of trade in goods, a Party may, in accordance with GATT 1994 and the Understanding on Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, adopt restrictive import measures in order to safeguard its external financial position and its balance of payments.
2. The Party adopting any restrictions under this Article shall initiate consultations with the other Party to review the restrictions adopted by it.

ARTICLE 1605
Restrictions to Safeguard the Balance of Payments

1. In the event of serious balance of payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on payments and transfers of funds of any investor of the other Party related to any investment covered by Chapter 9 and international payments and transfers for current transactions (8) related to its specific commitments under Chapter 8. It is recognised that particular pressures on the balance of payments of a Party in the process of economic development may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for stable economic development.
2. The restrictions referred to in Paragraph 1 shall:
(a) be consistent with the Articles of Agreement of the International Monetary Fund;
(b) avoid unnecessary damage to the commercial, economic and financial interests of the other Party;
(c) not exceed those necessary to deal with the circumstances described in Paragraph 1;
(d) be temporary and be phased out progressively as the situation specified in Paragraph 1 improves; and
(e) be applied on a national treatment basis and such that the other Party is treated no less favourably than any non-Party.
3. In determining the incidence of such restrictions, the Parties may give priority to economic sectors which are more essential to their economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector.
4. Any restrictions adopted or maintained under Paragraph 1, or any changes therein, shall be promptly notified to the other Party.
5. The Party applying any restrictions under Paragraph 1 shall commence consultations with the other Party in order to review the restrictions applied by it.

ARTICLE 1606
Prudential Measures

Nothing in this Agreement shall prevent a Party from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service (9) supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the Party's commitments or obligations under this Agreement.

ARTICLE 1607
Taxation Measures

1. This Agreement shall only grant rights or impose obligations with respect to taxation measures:
(a) where a corresponding right or obligation is also granted or imposed by the WTO Agreement; and
(b) under Article 912. (10)
2. If there is a dispute described in Article 917 (1) that may relate to a taxation measure, then the Parties, including representatives of their tax administrations, shall hold consultations. Any tribunal established under Article 917 shall accept a decision of the Parties as to whether the measure in question is a taxation measure.
3. In the event of any inconsistency relating to a taxation measure between this Agreement and the Agreement between the Kingdom of Thailand and Australia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion, done at Canberra on 31 August 1989, the latter shall prevail. Any consultations between the Parties about whether an inconsistency relates to a taxation measure shall include representatives of the tax administration of each Party. (11)

CHAPTER 17
INSTITUTIONAL PROVISIONS
ARTICLE 1701
Establishment of the Free Trade Agreement Joint Commission

A Free Trade Agreement Joint Commission (FTA Joint Commission) shall be established to ensure the proper implementation of this Agreement and to review periodically the economic relationship and partnership between the Parties. The FTA Joint Commission may meet at the level of ministers or senior officials, as mutually determined from time to time by the Parties. Each Party shall be responsible for the composition of its delegation.

ARTICLE 1702
Mandate of the Free Trade Agreement Joint Commission

1. The FTA Joint Commission shall:
(a) review the general functioning of this Agreement;
(b) review and consider specific matters related to the operation and implementation of this Agreement;
(c) consider any proposal to amend this Agreement;
(d) establish, as required, permanent and ad hoc subsidiary bodies and refer matters to them for advice and consider matters raised by all subsidiary bodies created under this Agreement;
(e) seek advice from non-governmental persons or groups on any matter falling within its responsibilities where this would help the FTA Joint Commission make an informed decision;
(f) explore measures for the further expansion of trade and investment between the Parties and identify appropriate areas of commercial, industrial and technical cooperation between relevant enterprises and organisations of the Parties; and
(g) take such other action as the Parties may mutually determine.
2. The FTA Joint Commission shall develop procedures governing the extent to which representatives from the private sector may participate in its deliberations.

ARTICLE 1703
Meetings of the Free Trade Agreement Joint Commission

1. The FTA Joint Commission shall meet within one year of the date of entry into force of this Agreement and then each year, or as otherwise mutually determined by the Parties.
2. The sessions of the FTA Joint Commission shall be held alternately in the territory of each Party.

ARTICLE 1704
General Reviews

1. The Parties shall undertake a general review at ministerial level of the operation of this Agreement within five years of its entry into force and at least every five years thereafter.
2. The conduct of general reviews shall normally coincide with regular meetings of the FTA Joint Commission.

CHAPTER 18
CONSULTATIONS AND DISPUTE SETTLEMENT
ARTICLE 1801
Scope

1. This Chapter shall apply to the avoidance and settlement of disputes between the Parties concerning the interpretation, implementation or application of this Agreement except for Chapter 6, Chapter 12 and Chapter 15. In relation to Chapter 11, this Chapter shall only apply to Article 1102.
2. Subject to Paragraph 4, nothing in this Chapter shall affect the rights of the Parties to have recourse to a dispute settlement procedure available under any other international agreement to which they are parties.
3. If a Party decides to have recourse to a dispute settlement procedure under another international agreement, it shall notify the other Party in writing of its intention to bring a dispute to a particular forum before doing so.
4. Once a dispute settlement procedure has been initiated between the Parties with respect to a particular dispute under this Chapter or under any other international agreement to which the Parties are parties, that procedure shall be used to the exclusion of any other procedure for that particular dispute. This paragraph does not apply if substantially separate and distinct rights or obligations under different international agreements are in dispute.
5. Paragraph 4 shall not apply where the Parties expressly agree to have recourse to dispute settlement procedures under this Chapter and another international agreement.
6. For the purposes of this Article, a dispute settlement procedure under the WTO Agreement shall be regarded as initiated by a Party's request for a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

Part 12

(8) "Current transactions" refers to current transactions as defined by the International Monetary Fund.

(9) A "financial service" is any service of a financial nature offered by a service supplier of a Party, and includes all insurance and insurance-related services, and all banking and other financial services. An illustrative list of financial services is provided in paragraph 5 of the Annex on Financial Services to GATS.

(10) This Sub-paragraph relates to taxation measures having an effect equivalent to expropriation or nationalisation.

(11) Nothing in this Agreement shall be regarded as obliging a Party to extend to the other Party the benefit of any treatment, preference or privilege arising from any existing or future agreement on the avoidance of double taxation or from the provisions on the avoidance of double taxation in any other international agreement or arrangement by which the Party is bound.