International treaty

Chapter 27: Trade and Development (web version)

Published 28 February 2022

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Article 27.1: General Provisions

1. The Parties acknowledge the importance of development in promoting inclusive economic growth, as well as the instrumental role that sustainable trade and investment can play in contributing to economic development, prosperity, and a resilient global economy. Inclusive economic growth includes a more broad-based distribution of the benefits of economic growth through the expansion of business and industry, including for SMEs and women-led businesses, the creation of jobs, and the alleviation of poverty.

2. The Parties acknowledge that inclusive economic growth should be sustainable, and that sustainable growth encompasses economic development, social development, climate resilience, and environmental protection. Effective coordination of trade, investment, climate change, and development policies can contribute to sustainable economic growth for developing countries, including least developed countries and small island developing states.

3. The Parties recognise the fundamental importance of a stable, open, and rules-based multilateral trading system, including for developing countries, and recognise the vital contribution of the WTO to trade and development.

4. The Parties affirm their commitment to promote and strengthen an open trade and investment environment that seeks to improve livelihoods, reduce poverty, raise living standards, and create new employment opportunities for all persons in support of development.

5. The Parties recognise that transparency, good governance, and accountability contribute to the effectiveness of trade and development policies and sustainability of development outcomes.

6. The Parties further recognise that in addition to this Chapter, there are provisions in other Chapters of this Agreement that seek to enhance cooperation between the Parties on trade and development issues or that otherwise may be of particular benefit to developing countries. Relevant Articles include:

(d) paragraphs 5 and 6 of Article 3.8 (Cumulation – Rules of Origin and Origin Procedures);

(b) paragraph 4 of Article 7.5 (Cooperation – Technical Barriers to Trade);

(c) Article 9.13 (Development Cooperation – Cross-Border Trade in Services);

(a) paragraph 4 of Article 15.20 (Digital Inclusion – Digital Trade); and

(e) paragraph 3 of Article 25.5 (Cooperation – Trade and Gender Equality).

Article 27.2: Cooperation

1. The Parties recognise that undertaking and strengthening cooperation between the Parties under this Agreement can promote developing country participation in trade, support inclusive and sustainable growth, reinforce international development strategies, and build competitive and diverse supply chains. Cooperative activities may include:

(a) dialogue and an exchange of information between the Parties;

(b) sharing of best practice on trade and development policies and programmes;

(c) promoting developing country participation in multilateral and regional fora and joint advocacy in areas relating to trade and development; or

(d) any other form of cooperation as may be agreed between the Parties including in support of least developed countries and small island developing states.

2. The Parties may invite, as appropriate, multilateral, regional, private sector, non-governmental, or other relevant organisations to assist with these cooperative activities.

3. The Parties may share best practice for monitoring and conducting analysis of trade agreements and their effects on developing countries, including the use of both qualitative and quantitative methods.

4. The Parties may monitor, jointly or individually, the impact of this Agreement on developing countries and shall endeavour to share any outcomes with each other.

Article 27.3: Inclusive Trade Sub-Committee

The Inclusive Trade Sub-Committee established under Article 30.9 (Sub-Committees – Institutional Provisions) shall support the effective implementation and operation of this Chapter. The functions of the Inclusive Trade Sub-Committee with respect to this Chapter shall be those set out in Article 30.8 (Inclusive Trade Sub-Committee – Institutional Provisions).

Article 27.4: Contact Points

Each Party shall designate a contact point from its relevant authorities within 90 days of the date of entry into force of this Agreement, in order to facilitate communication between the Parties on any matter relating to this Chapter. Each Party shall notify the other Party of the contact details of its contact point and shall promptly notify any change to its contact point or those contact details.

Article 27.5: Dispute Settlement

Neither Party shall have recourse to dispute settlement under Chapter 31 (Dispute Settlement) for a matter arising under this Chapter.