Page 351 - Regional Comprehensive Economic Partnership (RCEP)

branch located in the territory of that Party and carrying out
business activities there; 2. This Chapter shall not apply to:
13, 14, 15

(h) measure by a Party means any measure adopted or (a) government procurement;
maintained by:
(b) subsidies or grants provided by a Party;
(i) central, regional, or local governments and
authorities of that Party; and (c) services supplied in the exercise of governmental authority
by the relevant body or authority of a Party. For the
(ii) non-governmental bodies in the exercise of powers purposes of this Chapter, “service supplied in the exercise
delegated by central, regional, or local governments of governmental authority” means any service which is
or authorities of that Party; and supplied neither on a commercial basis nor in competition
with one or more service suppliers;
(i) natural person of a Party means, for the purposes of
subparagraph (e), a natural person who under the law of (d) measures adopted or maintained by a Party to the extent
that Party: that they are covered by Chapter 8 (Trade in Services); and

(i) is a national or citizen of that Party; or (e) measures adopted or maintained by a Party to the extent
that they are covered by Chapter 9 (Temporary Movement
(ii) has the right of permanent residence in that Party, of Natural Persons).
where both that Party and another Party recognise
permanent residents and accord substantially the For greater certainty, this Chapter does not bind any Party in
same treatment to their respective permanent relation to any act or fact that took place or any situation that
residents as they accord to their respective ceased to exist before the date of entry into force of this
nationals in respect of measures affecting Agreement.
investment.
3. Notwithstanding subparagraph 2(d), Article 10.5 (Treatment of
Investment), Article 10.7 (Senior Management and Board of
16
Article 10.2: Scope Directors), Article 10.9 (Transfers), Article 10.11
(Compensation for Losses), Article 10.12 (Subrogation), and
1. This Chapter shall apply to measures adopted or maintained by a Article 10.13 (Expropriation) shall apply, mutatis mutandis, to any
Party relating to: measure affecting the supply of a service by a service supplier of
a Party through commercial presence in the territory of any other
(a) investors of another Party; and Party within the meaning of Chapter 8 (Trade in Services), but
only to the extent that any such measure relates to a covered
(b) covered investments. investment and an obligation under this Chapter.

13 For greater certainty, a branch of a juridical person does not have any right to make
any claim against any Party under this Agreement.

14 For greater certainty, the inclusion of a “branch” in the definition of “juridical person
of a Party” is without prejudice to a Party’s ability to treat a branch under its law as an
entity that has no independent legal existence and is not separately organised. 16 Article 10.7 (Senior Management and Board of Directors) shall apply to measures
affecting the supply of a service only for a Party making commitments in accordance
15 A branch of a legal entity of a non-Party shall not be considered as a juridical person with Article 8.8 (Schedules of Non-Conforming Measures).
of a Party.

10-4 10-5