Malaysia – Side Instruments

Culture

Letter from the Honourable François-Philippe Champagne

8 March 2018

H. E. Mustapa Mohamed
Minister of International Trade and Industry
Malaysia

Dear Minister,

In connection with the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the “Agreement”), I have the honour to confirm the following agreement reached by the Government of Canada (Canada) and the Government of Malaysia (Malaysia):

Canada and Malaysia agree that, in continuing to give effect to the Agreement, notwithstanding the following language in Annex II – Canada – 16 and 17 – under the Cultural Industries Sector, first paragraph under the subheading “Description,” that states “except: (a) discriminatory requirements on service suppliers or investors to make financial contributions for Canadian content development; and (b) measures restricting the access to on-line foreign audio-visual content”, Canada may adopt or maintain discriminatory requirements on service suppliers or investors to make financial contributions for Canadian content development and may adopt or maintain measures that restrict access to on-line foreign audio-visual content.

I have the honour to propose that this letter, equally valid in English and French, and your letter in reply shall constitute an agreement between our two Governments, which shall enter into force on the date of entry into force of the Agreement as between Canada and Malaysia.

Yours sincerely

The Honourable François-Philippe Champagne
Minister of International Trade


Response from Mustapa Mohamed

8 March 2018

The Honourable François-Philippe Champagne
Minister of International Trade
Canada

Dear Minister,

I am pleased to acknowledge receipt of your letter of 8 March 2018, which reads as follows:

“In connection with the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(the “Agreement”), I have the honour to confirm the following agreement reached by the Government of Canada (Canada) and the Government of Malaysia (Malaysia):

Canada and Malaysia agree that, in continuing to give effect to the Agreement, notwithstanding the following language in Annex II – Canada – 16 and 17 – under the Cultural Industries Sector, first paragraph under the subheading “Description,” that states “except: (a) discriminatory requirements on service suppliers or investors to make financial contributions for Canadian content development; and (b) measures restricting the access to on-line foreign audio-visual content,” Canada may adopt or maintain discriminatory requirements on service suppliers or investors to make financial contributions for Canadian content development and may adopt or maintain measures that restrict access to on-line foreign audio-visual content.

I have the honour to propose that this letter, equally valid in English and French, and your letter in reply shall constitute an agreement between our two Governments, which shall enter into force on the date of entry into force of the Agreement as between Canada and Malaysia.”

I have the honour to confirm that the above reflects the agreement reached between our Governments, and that your letter, equally valid in English and French, and this letter in reply shall constitute an agreement between our Governments, which shall enter into force on the date of entry into force of the Agreement as between Malaysia and Canada.

Sincerely,

Mustapa Mohamed
Minister of International Trade and Industry
Malaysia

Motor vehicles

Letter from Mustapa Mohamed

5 March 2018

The Honourable François-Philippe Champagne
Minister of International Trade
Canada

Dear Minister,

In connection with the signing on 8 March 2018 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the “Agreement”), I have the honour to confirm the following agreement reached between the Government of Malaysia (Malaysia) and the Government of Canada (Canada):

  1. For the purposes of determining whether a good of heading 87.03 qualifies as originating in accordance with Chapter 3 (Rules of Origin and Origin Procedures) of the Agreement, the applicable product specific rule of origin will be:
    1. a change to a good of subheading 87.03 from any other heading; or
    2. no change in tariff classification required for a good of heading 87.03, provided there is a regional value content of not less than:
      1. 40 per cent under the net cost method; or
      2. 50 per cent under the build-down method.
         
  2. Starting from the date of entry into force of the Agreement for Malaysia, Malaysia shall not:
    1. apply any quantitative limit on the importation of originating new motor vehicles from Canada, including any limit applicable to vehicles that are subject to an import licensing requirement; or
    2. impose any new or additional charge applicable to the importation of originating motor vehicles from Canada.
       
  3. Malaysia’s commitments in paragraph two of this letter shall apply notwithstanding any provision of Chapter 29 (Exceptions and General Provisions) of the Agreement.

  4. In order to enhance the benefits of the Agreement, Canada shall endeavour to facilitate technical cooperation and capacity building activities with Malaysia in areas of mutual interest in the automotive sector.

I have the further honour to propose that this letter and your letter of confirmation in reply, equally valid in English and French, shall constitute an agreement between our Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Malaysia and Canada.

Sincerely,

Mustapa Mohamed
Minister of International Trade and Industry
Malaysia


Response from  the Honourable François-Philippe Champagne

8 March 2018

H. E. Mustapa Mohamed
Minister of International Trade and Industry
Malaysia

Dear Minister,

I have the honour to acknowledge receipt of your letter of 5 March 2018, which reads as follows:

"In connection with the signing on 8 March 2018 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the “Agreement”), I have the honour to confirm the following agreement reached between the Government of Malaysia (Malaysia) and the Government of Canada (Canada):

  1. For the purposes of determining whether a good of heading 87.03 qualifies as originating in accordance with Chapter 3 (Rules of Origin and Origin Procedures) of the Agreement, the applicable product specific rule of origin will be:
    1. a change to a good of subheading 87.03 from any other heading; or
    2. no change in tariff classification required for a good of heading 87.03, provided there is a regional value content of not less than:
      1. 40 per cent under the net cost method; or
      2. 50 per cent under the build-down method.
         
  2. Starting from the date of entry into force of the Agreement for Malaysia, Malaysia shall not:
    1. apply any quantitative limit on the importation of originating new motor vehicles from Canada, including any limit applicable to vehicles that are subject to an import licensing requirement; or
    2. impose any new or additional charge applicable to the importation of originating motor vehicles from Canada.
       
  3. Malaysia’s commitments in paragraph two of this letter shall apply notwithstanding any provision of Chapter 29 (Exceptions and General Provisions) of the Agreement.

  4. In order to enhance the benefits of the Agreement, Canada shall endeavour to facilitate technical cooperation and capacity building activities with Malaysia in areas of mutual interest in the automotive sector.

I have the further honour to propose that this letter and your letter of confirmation in reply, equally valid in English and French, shall constitute an agreement between our Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Malaysia and Canada."

I have the further honour to confirm that my Government shares this understanding and that your letter and this letter in reply, equally valid in English and French, shall constitute an agreement between our Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Canada and Malaysia.

Sincerely,

The Honourable François-Philippe Champagne
Minister of International Trade

Electronic payment services

Letter from Mustapa Mohamed

5 March 2018

The Honourable François-Philippe Champagne
Minister of International Trade
Canada

Dear Minister Champagne,

In connection with the signing on 8 March 2018 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the Agreement), I have the honour to confirm the following agreement reached between representatives of the Government of Malaysia and the Government of Canada:

Nothing in Section D (Electronic Payment Card Services) of Annex 11-B (Specific Commitments) of the Agreement restricts the right of Malaysia to adopt or maintain measures that condition the cross-border supply of electronic payment services into Malaysia by a service supplier of another Party on a requirement that such electronic payment services are supplied through a payment system operated in Malaysia by an entity approved by Bank Negara Malaysia (hereinafter referred to as an ‘approved operator of a payment system in Malaysia’).

Any such measure shall:

  1. be applicable only to electronic payment services for payment card transactions made in Malaysia using payment cards issued in Malaysia;
  2. not be used as a means of avoiding Malaysia’s obligations under Section D (Electronic Payment Card Services);
  3. not result in creating a competitive disadvantage to any service suppliers of Malaysia and of another Party;
  4. ensure the security, speed, or reliability of the services, and preserve the ability of service suppliers of another Party to innovate; and
  5. not impose unreasonable costs, directly or indirectly, on service suppliers of another Party.

If an approved operator of a payment system in Malaysia and a supplier of another Party enter into an agreement or agreements for the processing of electronic payment transactions that set out standards for operation of that payment system, compliance with the terms of the agreement or agreements shall be deemed to satisfy Malaysia’s obligations under paragraphs (3), (4) and (5) with respect to that supplier.

I have the honour to propose that this letter and your letter of confirmation in reply shall constitute an agreement between our two Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Malaysia and Canada.

Sincerely,

Mustapa Mohamed
Minister of International Trade and Industry
Malaysia


Response from the Honourable François-Philippe Champagne

8 March 2018

H.E. Mustapa Mohamed
Minister of International Trade and Industry
Malaysia

Dear Minister,

I am pleased to acknowledge your letter of 5 March 2018 which reads as follows:

“In connection with the signing on 8 March 2018 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the Agreement), I have the honour to confirm the following agreement reached between representatives of the Government of Malaysia and the Government of Canada:

Nothing in Section D (Electronic Payment Card Services) of Annex 11-B (Specific Commitments) of the Agreement restricts the right of Malaysia to adopt or maintain measures that condition the cross-border supply of electronic payment services into Malaysia by a service supplier of another Party on a requirement that such electronic payment services are supplied through a payment system operated in Malaysia by an entity approved by Bank Negara Malaysia (hereinafter referred to as an ‘approved operator of a payment system in Malaysia’).

Any such measure shall:

  1. be applicable only to electronic payment services for payment card transactions made in Malaysia using payment cards issued in Malaysia;
  2. not be used as a means of avoiding Malaysia’s obligations under Section D (Electronic Payment Card Services);
  3. not result in creating a competitive disadvantage to any service suppliers of Malaysia and of another Party;
  4. ensure the security, speed, or reliability of the services, and preserve the ability of service suppliers of another Party to innovate; and
  5. not impose unreasonable costs, directly or indirectly, on service suppliers of another Party.

If an approved operator of a payment system in Malaysia and a supplier of another Party enter into an agreement or agreements for the processing of electronic payment transactions that set out standards for operation of that payment system, compliance with the terms of the agreement or agreements shall be deemed to satisfy Malaysia’s obligations under paragraphs (3), (4) and (5) with respect to that supplier.

I have the honour to propose that this letter and your letter of confirmation in reply shall constitute an agreement between our two Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Malaysia and Canada.”

I have the honour to confirm that my Government shares this understanding, and that your letter and this reply shall constitute an agreement between our two Governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the Agreement, which shall enter into force on the date of entry into force of the Agreement as between Canada and Malaysia.

Sincerely,

The Honourable François-Philippe Champagne
Minister of International Trade
Canada

PETRONAS

Letter from Mustapa Mohamed

5 March 2018

The Honourable François-Philippe Champagne
Minister of International Trade
Canada

Dear Minister,

In connection with the signing on this date of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the Agreement), I have the honour to confirm the following understanding reached between the Government of Malaysia and the Government of Canada on Chapter 17 (State-Owned Enterprises and Designated Monopolies) of the Agreement:

  1. The Government of Canada will refrain from seeking recourse to Chapter 28 (Dispute Settlement) of the Agreement with respect to the commitment of Malaysia regarding PETRONAS as contained in subparagraphs (a) through (l) in the Scope of Non-Conforming Activities of Annex IV – MALAYSIA – 3 for a period of (5) five years after the entry into force of the Agreement for Malaysia.
  2. After these period, both countries will conduct consultations with a view to deciding on actions to be taken after such periods.

I have the further honour to propose that this letter and your letter in reply, equally valid in English and French, confirm the shared understanding between the Government of Malaysia and the Government of Canada, which will come into effect on the date on which the Agreement enters into force for both Malaysia and Canada.

Sincerely,

Mustapa Mohamed
Minister of International Trade and Industry
Malaysia


Response from the Honourable François-Philippe Champagne

8 March 2018

H. E. Mustapa Mohamed
Minister of International Trade and Industry
Malaysia

Dear Minister,

I have the honour to acknowledge receipt of your letter of dated 5 March 2018, which reads as follows:

“In connection with the signing on this date of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the Agreement), I have the honour to confirm the following understanding reached between the Government of Malaysia and the Government of Canada on Chapter 17 (State-Owned Enterprises and Designated Monopolies) of the Agreement:

  1. The Government of Canada will refrain from seeking recourse to Chapter 28 (Dispute Settlement) of the Agreement with respect to the commitment of Malaysia regarding PETRONAS as contained in subparagraphs (a) through (l) in the Scope of Non-Conforming Activities of Annex IV – MALAYSIA – 3 for a period of (5) five years after the entry into force of the Agreement for Malaysia.
  2. After these period, both countries will conduct consultations with a view to deciding on actions to be taken after such periods.

I have the further honour to propose that this letter and your letter in reply, equally valid in English and French, confirm the shared understanding between the Government of Malaysia and the Government of Canada, which will come into effect on the date on which the Agreement enters into force for both Malaysia and Canada.”

I have further the honour to confirm that the above reflects the mutual understanding reached between the Government of Canada and the Government of Malaysia and that your letter and this letter in reply, equally valid in English and French, will constitute an understanding between the Government of Canada and the Government of Malaysia.

Sincerely,

The Honourable François-Philippe Champagne
Minister of International Trade

Biodiversity

Understanding regarding biodiversity and traditional knowledge

The Government of Canada and the Government of Malaysia have reached the following understanding concerning biodiversity and traditional knowledge in connection with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the Agreement) signed this day:

[REDACTED]

Canada and Malaysia recognize that the equitable sharing of benefits that may result from the utilisation of traditional knowledge relevant for the conservation and sustainable use of biological diversity can be addressed through appropriate mechanisms.

[REDACTED]

This understanding between our Governments shall enter into force on the date of entry into force of the Agreement for both Canada and Malaysia.

SIGNED in duplicate at _____, this _____ day of _____ 2018, in the English and French languages, each version being equally valid.

_________________________________
For the government of Canada

_________________________________
For the government of Malaysia

Date Modified: