Amendments Agreed To Singapore-Australia FTA

Companies and investors in Singapore and Australia are now to have greater certainty in their investments, and protection of their intellectual property rights (IPR), following a review and amendments to the Singapore-Australia Free Trade Agreement (SAFTA).

SAFTA is a comprehensive agreement covering the trade in goods, services, the movement of business persons, government procurement, intellectual property rights, competition policy, e-commerce and education cooperation. It was signed on February 17, 2003, and came into force on July 28, 2003. The first review entered into force in March 2009.

Singapore and Australia recently completed the second review of SAFTA, and concluded amendments aimed at ensuring that the agreement remains to be relevant and beneficial to businesses. The amendments are effective from September 2, 2011.

Within the agreement’s investment chapter, it was said that Singapore companies operating in Australia will now have greater certainty that their investments will receive fair and equitable treatment and the full protection and security as required under international law. This includes the right to due process in legal proceedings.

Both Singapore and Australia have also committed to ensuring that investors will not be burdened with any requirements or commitments on minimum performance levels in its territory, including restrictions on the volume, value or sales level of goods or services, the achieving of a given level of domestic content, or the transfer of technology or propriety knowledge.

In addition, investors in Singapore and Australia will now have the assurance that their IPR will have broader protection. Amendments to SAFTA’s relevant chapter expand the cooperation between Singapore and Australia on issues relating to the enforcement of IPR, as well as information exchange for the protection, management and exploitation of intellectual property.

Specifically, there are eight new articles that have been introduced to reflect the changes to Australia’s and Singapore’s domestic intellectual property legislation over the last few years. The new articles will provide investors with greater clarity on the specific IPR accorded to their property and assets.

For example, one article introduces measures to protect against the wilful removal or alteration of rights management information for the purpose of facilitation or concealment of an infringement of any copyright, while other articles further spell out the civil enforcement and criminal procedures and remedies available to investors who have been subjected to IPR infringement.

September 6, 2011

Source: Tax News