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Third Protocol To Amend The Asean Comprehensive Investment Agreement

(Last Updated On: April 13, 2021)

ASEAN economic ministers will meet this month in Thailand, where they will sign a new protocol that would revise their existing ASEAN-wide investment agreement and their new Trade in Services Agreement (ATISA). Negotiations on updating the two agreements reached at the end of 2018. 2. The Protocol incorporates provisions on trade in services, the free movement of individuals and investments in the Comprehensive Economic Partnership Agreement between Japan and the Member States of the Association of Southeast Asian Nations, which came into force in 2008. The Protocol is the first Economic Partnership Agreement (EPA) on trade in services and the free movement of individuals to the Kingdom of Cambodia, the Lao People`s Democratic Republic and the Republic of Myanmar. The protocol also contains the liberalisation rules and obligations of ASEAN member states, which will not be incorporated into bilateral EPAs and related agreements between Japan and ASEAN member states. 3. The Protocol should promote continued trade and investment between Japan and ASEAN in full development and strengthen cooperation relations between Japan and ASEAN. Article 43 “Member States Consultations”: “Member States agree to consult, at the request of a Member State, on any investment issues under this agreement or affecting the implementation of this agreement.” (reference) With regard to the notification by an ASEAN Member State that its legal procedures necessary for the protocol to enter into force for the entry into force of the protocol will be completed in the coming period, the protocol enters into force on the first day of the second month following the date of notification. (1) The first protocol amending the agreement establishing a comprehensive economic partnership between Japan and the Member States of the Association of Southeast Asian Nations between Japan, the People`s Democratic Republic of Lao, the Republic of Myanmar, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam came into force on 1 August. The next meeting of economy ministers is scheduled for April 23-24. The updated ASEAN Comprehensive Investment Agreement (CFIA) includes a ban on performance requirements and would transform its current list of reserves (which is in a single appendix) into a “two-side” approach into a negative list.

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