WORLD TRADE
ORGANIZATIONWT/REG127/4
17 October 2002
(02-5645)
Committee on Regional Trade Agreements Original:  English
AGREEMENT BETWEEN NEW ZEALAND AND SINGAPORE
ON A CLOSER ECONOMIC PARTNERSHIP
SERVICES ASPECTS
Communication from the Parties
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry Into Force
The Agreement between New Zealand and Si ngapore on a Closer Economic Partnership,
commonly known as the CEP, entered into force on 1 January 2001.  New Zealand and Singapore first
announced their intention to negotiate an agreement in September 1999.  After completing six roundsof negotiation, the New Zealand Prime Minister He len Clark and the Singapore Prime Minister Goh
Chok Tong signed the Agreement in Singapore on 14 November 2000.  Both countries subsequently
ratified the Agreement on 15 December 2000.
2. Type of Agreement
The services chapter and attached annexes of the CEP provide for free trade and investment in
services between the Parties, in accordance with Article V of the General Agreement on Trade in
Services (GATS).  Article 14 specifically notes the Parties’ intention to ‘expand trade in services on a
mutually advantageous basis, under conditions of transparency and progressive liberalisation through
successive reviews...while recognis ing the rights of both Parties to regulate…giving due respect to
national policy objectives…’
3. Scope
The CEP applies to measures by the Parties affecting trade in services.  No services sectors
are excluded a priori  from the scope of the agreement other than services supplied in the exercise of
governmental authority.  The CEP adopts a positive list structure, and specific commitments cover the
four modes of supply.  The schedules listing New Zealand and Singapore’s initial commitments toliberalise services trade, which expand substantially on those already made by both Parties under the
GATS, are attached to the services chapter of the CEP as Annex 2.
Article 20 stipulates that the Parties have each agreed to review their respective services
schedules at least every two years as part of the CEP’s general review, and progressively add to their
initial commitments as well as expand market ac cess and/or national treatment between them, in
accordance with the APEC objective of free and open trade in services by 2010.  New Zealand and
Singapore have also agreed to meet before 2008 to identify and consider mutually acceptable
solutions for any services sector or measures that might not fully be liberalised by 1 January 2010.WT/REG127/4
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4. Economic and Trade Data
In the year to March 2002, New Zealand’s total services exports were NZ$10,512,070.
Singapore’s total services exports for 2000 were S$50,463,800.
New Zealand and Singapore are both still developing their collection methodology for data on
services trade.  Historical information on services trade is presently very limited, although the
attached tables detail New Zealand and Singapore’s global services trade for the period specified.
Both Parties, however, have limited data on services exports/imports by region or country.  The
statistics that are available, therefore, cannot be relied upon to paint an accurate or complete picture of
services trade prior to and post implementation of the CEP.
II. PROVISIONS AFFECTING TRADE IN SERVICES
1. Provisions of the agreement relating to the elimination of Article XVII inconsistent
measures
Article 17 sets out general provisions governing Market Access in those services covered by
each Party’s schedule of commitments, and measures which a Party shall not maintain or adopt insectors where market access commitments are undertaken.  Article 18 on National Treatment requires
that each Party accord to services and service suppliers of the other Party treatment no less favourable
than that accorded to its own like services and service suppliers, subject to the conditions and
qualifications set out in its schedule of commitments.
Articles 17 and 18 are consistent with the corresponding Articles of the GATS on Market
Access (Article XVI) and National Treatment (Article XVII).
Article 19 allows the Parties to negotiate additional commitments not subject to scheduling
under Articles 17 and 18, such as those relating to licensing, standards and qualifications, and addthese to their respective schedules of commitments.
As stated in Part I above, Article 20 sets out the general timetable and process for liberalising
trade in services between the Parties.
1.1 Treatment Of Services And Serv ices Suppliers From Third Countries
The CEP liberalises trade in services between the Parties.  It does not address the treatment of
services and service suppliers from third countries, except in respect of Article 25 which provides for
legal persons of a non-Party to benefit from the CEP if they engage in ‘substantive’ business
operations in the territory of one or both Parties.
With the exception of the circumstances covered by Article 25, services and services
suppliers of third countries are not directly affected by the CEP.  As GATS signatories, New Zealand
and Singapore treat services and services suppliers from third countries in accordance with Article II,
the other general GATS provisions, and the Parties’ GATS schedules of specific commitments.  There
has been no need for negotiations under Article V:5 of the GATS.
2. Rules of Origin
The CEP extends benefits to a ‘natural’ or ‘legal’ person of the other Party and services
supplied by them.  The ‘supply of a service’ is defined to include the production, distribution,
marketing, sale and delivery of a service.WT/REG127/4
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A ‘natural person of the other Party’ is defined to mean a person who resides in the territory
of that other Party or elsewhere and who under the law of that other Party:
(i) is a national of that other Party; or
(ii) has the right of permanent residence in that other Party, in the case of a Party which
accords substantially the same treatment to its permanent residents as it does to its
nationals in respect of measures affecting trade in services, provided that that Party is
not obligated to accord to such permanen t residents treatment more favourable than
would be accorded by the other Party to such permanent residents.
A ‘legal person’ is defined to mean any legal entity duly constituted or otherwise organised
under applicable law, whether for profit or otherwise, and whether privately-owned or
governmentally-owned, including any corporation, trus t, partnership, joint venture, sole proprietorship
or association (Article 16).
3. Standards/Recognition
Article 21 on domestic regulation incorporates the relevant provisions of GATS Article VI.
In sectors where specific commitments are undertaken, Parties agree that all measures of general
application are administered in a reasonable, objective and impartial manner.  In addition, Parties shall
review the development of disciplines under GATS  Article VI.4, with a view to incorporating such
disciplines into the CEP.  Article 21 also adopts the GATS interim disciplines which apply pendingthe development of the abovementioned disciplines.
Article 22 provides a mechanism for mutual recognition of professional qualifications and
registration.  The Parties have agreed to ‘facilitate the establishment of a dialogue between experts in
the priority areas with a view to achievement of early outcomes on recognition of professionalqualifications or registration in these areas’.  At the first Ministerial review of the CEP in November
2001, Trade Ministers Jim Sutton and George Yeo ag reed to a priority list of sectors where
professional bodies and regulatory agencies of the Parties would be encouraged to work towards
mutual recognition of qualifications and registration.  The ten priority sectors identified at the first
review were:
1) Engineers
2) Planners
3) Architects
4) Landscape Architects
5) Registered Valuers
6) Dentists7) Dental Technicians
8) Doctors
9) Nurses
10) Midwives
Other sectors may be added to this list by mutual agreement at the next Ministerial review in
2003, with a view to achievement of early outcomes on the recognition of professional qualifications
or registration.
4. Safeguards
The services chapter of the CEP does not contain any specific provisions for safeguards.
General exceptions are provided for under Article 71.  Article 73 covers measures to safeguard the
balance of payments.WT/REG127/4
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5. Subsidies and State-Aid
Article 23 stipulates that subsidies are not co vered by the CEP, apart from provision for
consultation in the event that particular subsidies i ssues affecting trade in services between the Parties
arise.  Any disciplines emerging from WTO negotiations on services subsidies may be considered forinclusion in the CEP.
6. Government Procurement
A single market for government procurement of goods and services between New Zealand
and Singapore is established under Article 46.  This chapter only applies to procurement  valued at, or
above, SDR 50,000.  Government procurement of services is subject to each Party’s schedule of
commitments and the limitations set out therein (Article 47).
7. Sector-Specific Provisions
Article 15(3) on Financial Services, allows Parties to take 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 supplier or to ensure the integrity and stability of the financialsystem.  ‘Financial service supplier’ is defined in Article 16.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Article 71 sets out the exceptions to the CEP based on the standard WTO exceptions as
specified in GATT 1994 Article XX and GATS Article XIV.  Under sub-paragraph 71(d), the Parties
may adopt measures ‘necessary to protect national works, items or specific sites of historical or
archaeological value, or to support creative arts of national value’.  An illustrative list of creative arts
is included in a footnote to the Article.
In addition, Article 74 stipulates that nothing in the agreement shall preclude the New
Zealand Government from adopting measures in order to meet its obligations under the Treaty of
Waitangi, provided that such measures are not used as a means of arbitrary or unjustified
discrimination or as a disguised restriction on trade in goods and services or investment.  Article 75
stipulates that nothing in the Agreement precludes the adoption by Singapore of measures to prevent
or relieve critical shortages, subject also to the same proviso as Article 74.  Article 76 permits eitherParty to take actions considered essential to its security interests.
2. Accession
Article 79 allows for other WTO Members, states or separate customs territories to accede to
the CEP.
3. Dispute Settlement Procedures
Article 59 obliges the Parties to allow adequate opportunities for consultations in the event
that a dispute arises and to make every effort to reach a mutually satisfactory resolution.  Article 60
stipulates that the Parties may agree at any time to  good offices, conciliation or mediation.  If such
consultations fail to settle a dispute, the Party which made the request for consultations may make a
written request to the other Party to appoint an arbitral tribunal.  Article 61 provides for an arbitration
tribunal consisting of three members.  Each Party shall appoint one member, and these two membersWT/REG127/4
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shall then agree on the third who shall chair the tribunal.  If the two members cannot agree on the
third member, then the Director General of the WTO shall appoint the third member.  The Director
General also has powers to appoint an arbitrator in certain other circumstances where one of the
Parties fails to appoint an arbitrator within a specified time period.  The Director General has agreed
to this role as spelt out in Article 61.
The dispute settlement procedures also include detailed provisions as to the functions and
proceedings of arbitral tribunals, as well as the implementation of the tribunal’s rulings or findings.
There are also timeframes specified for each stage of the entire proceedings, so as to give a degree of
automaticity to the process.
Recourse to WTO dispute settlement procedures is still allowed under the Agreement.
4. Relation with other Trade Agreements
Article 80 provides that the CEP will not ov erride a Party’s obligations under any other
international, regional or bilateral agreement.
The CEP does not establish any formal relationships with other bilateral, plurilateral and/or
multilateral trade agreements.  Article 81 makes clear that the CEP does not oblige either Party to
extend to the other Party benefits derived from its membership of any other existing or future FTA or
Customs Union.  Also, the benefits negotiated under the CEP do not automatically extend to each
Party’s other FTA partners.
5. Institutional Framework
No intergovernmental or supranational institutions were created to operate the CEP.  The
Ministry of Foreign Affairs and Trade of New Z ealand and the Ministry of Trade and Industry of
Singapore are the two primary governmental agencies responsible for the overall implementation andmonitoring of the CEP.  In addition, the Ministry  of Economic Development of New Zealand and the
Ministry of Finance of Singapore have oversight of government procurement issues.
IV. OTHER
1. Movement of Natural Persons
The CEP also applies to measures affecting natural persons supplying services and employed
by services suppliers, in respect of the supply of a service.  Article 72 states that ‘the Parties may
negotiate specific commitments applying to the movement of all categories of natural persons
supplying services under this Agreement.  Natural persons covered by a specific commitment shall be
allowed to supply the service in accordance with the terms of that commitment.’  In addition, the CEP
does not prevent either Party ‘from applying measures to regulate the entry of natural persons of theother Party into, or their temporary stay in, its terr itory, including those measures necessary to protect
the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided
that such measures are not applied in such a manner as to nullify or impair the benefits accruing to
either Party under the terms of a specific commitment.’
2. Transparency
Article 69 imposes a number of obligations on New Zealand and Singapore to ensure
transparency of laws, rules and regulations pertaining to trade in goods, services and investment.
Notably, each Party shall endeavour to allow the other Party opportunity to comment on its proposed
laws, regulations and procedures which will affect bilateral trade in services and investment.WT/REG127/4
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TRADE DATA
Details of Singapore International Trade in Services
Exports, 1998-2001
(S$ millions)
Period 1998 1999 2000 2001*
Transportation 15,185.7 18,129.5 20,478.7 20,079.0
Travel 7,970.7 8,619.1 9,298.4 9,161.8
Trade-Related & Others 6,246.5 9,730.5 10,582.7 13,070.3
Financial 2,084.2 2,098.1 2,505.4 2,387.4
Insurance 527.4 545.2 774.8 1,132.6
Computer and Information 403.7 347.8 332.0 348.9
Business and Technical Services 4,732.4 4,950.8 6,177.9 6,239.3
    Legal, accounting and business management 3,170.5 3,456.9 4,345.1 4,569.6
    Advertising, public relations and design services 225.2 251.4 391.0 410.7
    Research & Development 164.1 125.9 159.0 135.3
    Architectural, engineering and other technical services 842.5 836.2 1,051.0 903.3
    Construction 330.1 280.4 231.8 220.4
Royalties 97.9 113.3 150.4 128.0
Cultural, Sports and Recreational Services 14.3 20.3 25.9 28.3
Government 162.4 137.9 137.6 137.6
Total 37,425.2 44,692.5 50,463.8 52,713.2
* preliminary estimates
Imports, 1998-2001
(S$ millions)
Period 1998 1999 2000 2001*
Transportation 15,490.3 18,319.5 21,511.6 20,372.5
Travel 7,428.0 8,160.0 8,894.4 9,283.4
Trade-Related & Others 2,169.4 2,205.9 2,804.2 4,317.0
Financial 472.1 616.8 790.7 891.3
Insurance 1,691.9 1,836.3 2,133.4 2,057.6
Computer and Information 258.0 306.1 388.2 407.8
Business and Technical Services 3,872.4 3,998.7 4,507.9 4,426.4
    Legal, accounting and business management 2,100.2 2,228.5 2,723.4 2,838.5
    Advertising, public relations and design services 179.2 168.8 227.4 238.8
    Research & Development 951.3 991.5 1,007.0 857.0
    Architectural, engineering and other technical services 314.9 296.4 336.0 288.6
    Construction 326.8 313.5 214.1 203.5
Royalties 3,122.0 6,504.8 6,227.7 5,300.0
Cultural, Sports and Recreational Services 12.0 23.4 39.3 42.9
Government 194.0 197.2 198.5 247.1
Total 34,710.1 42,168.7 47,495.9 47,346.0
* preliminary estimatesWT/REG127/4
Page 7Details of New Zealand International Trade in Services
Exports of Services Survey
(Value in NZ$ '000)
Quarter Ended Mar-98 Mar-99 Mar-00 Mar-01 Mar-02
Transportation 1,940,706 2,177,400 2,370,016 2,956,457 2,652,814
Travel 3,305,789 3,796,708 4,531,857 5,077,564 5,833,196
Business 425,721 499,653 547,948 569,836 666,039
Personal 2,880,068 3,297,055 3,983,909 4,507,728 5,167,157
Education 400,826 415,522 540,001 596,622 928,410
Health 11,603 11,603 11,603 11,603 11,603
Other (the main component of personal travel) 2,467,639 2,869,930 3,432,305 3,899,504 4,227,144
Communication (1) 358,385 357,677 391,784 413,273
Construction 2,820 9,949 19,849 26,309
Insurance 14,533 18,356 23,345 30,739 53,971
Financial 50,426 71,236 68,566 86,176 50,059
Computer and information 69,245 113,731 146,781 173,544 203,148
Royalties and licence fees 52,249 95,142 98,232 116,597 147,213
Other business services 860,319 615,735 652,809 836,975 824,800
Merchanting and other trade related services 49,724 56,514 76,686 138,189 141,599
Miscellaneous services 810,596 559,221 576,123 698,787 683,201
Legal, accounting, management consultancy and public relations 112,160 140,076 225,641 251,636 260,911
Advertising, market research and public opinion polling 40,367 41,997 39,052 56,979 41,990
Research and development 37,129 55,538 55,339 73,956 81,199
Architectural, engineering and other technical services 71,362 151,220 157,373 191,425 154,348
Agricultural, mining and on-site processing services 1,427 2,405 1,471 5,912 10,436
Other services (2) 548,151 167,985 97,246 118,879 134,318
Personal, cultural and recreational 55,350 105,301 212,793 311,918 163,209
Government services nie 111,793 111,805 116,141 114,544 144,078
Total Exports of Services 6,460,410 7,466,620 8,588,167 10,116,148 10,512,070
(1) Communication services is telecommunications services and postal and courier services.  Before the June 1998 quarter these were included in Other Miscellaneous Services.
(2) Other miscellaneous services include management fees, personnel supply, photographic, printing, property management, Member ship subscriptions, other services,
consultancy not elsewhere classified, ope rational leasing and communications (1).WT/REG127/4
Page 8 Imports of Services Survey
(Value in NZ$ '000)
Quarter Ended Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02
Transportation 2,405,913 2,576,782 2,771,745 2,858,402 3,238,007 3,445,111
Travel 2,193,412 2,329,903 2,796,789 2,943,855 3,397,420 3,141,621
Comunication (1) n.a. 2,094,595 360,534 447,144 300,578
Construction n.a. 1,981,191 11,089 13,418 13,292
Insurance 191,411 196,548 226,553 217,590 176,584 272,380
Financial 27,512 39,294 44,638 82,835 110,808 84,293
Computer and information 92,942 126,324 188,318 200,637 229,539 204,122
Royalties and licence fees 459,898 522,022 567,431 616,996 714,588 679,346
Other business services 1,533,880 1,598,346 1,576,954 1,397,681 1,693,289 1,569,903
Merchanting and other trade related services 90,884 88,987 97,852 92,226 116,731 94,994
Miscellaneous services 1,442,997 1,509,359 1,479,102 1,305,456 1,576,557 1,474,909
Legal, accounting, management consultancy and public relations 76,958 101,701 144,826 183,054 200,713 159,810
Advertising, market research and public opinion polling 122,525 124,441 136,545 90,704 139,627 133,945
Research and development 14,844 13,707 18,933 19,000 36,162 33,505
Architectural, engineering and other technical services 66,321 41,752 69,471 84,765 48,126 46,131
Agricultural, mining and on-site processing services 1,556 2,254 1,740 3,670 10,304 n.a.
Other services (2) 1,160,793 1,225,503 1,107,587 924,263 1,141,625 1,097,104
Personal, cultural and recreational 16,205 20,394 28,374 47,938 62,190 46,546
Government services nie 128,192 136,753 129,292 135,911 136,636 151,659
Total Imports of Services 7,049,364 7,546,365 8,594,638 8,873,467 10,219,624 9,908,852
(1) Communication services is telecommunications services and postal and courier services.  Before the June 1998 quarter these were included in Other Miscellaneous Services.
(2) Other miscellaneous services include management fees, personnel supply, photographic, printing, property management, member ship subscriptions, other services,
consultancy not elsewhere classified, ope rational leasing and communications (1).
n.a. Not available.
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