WT/TPR/M/196/Add.1 10 April 2008 - WTO Documents Online

WORLD TRADE ORGANIZATION ORGANISATION MONDIALE DU COMMERCE ORGANIZACIÓN MUNDIAL DEL COMERCIO

WT/TPR/M/196/Add.1 10 April 2008

(08-1647)

Trade Policy Review Body 25 and 27 February 2008

Original: English/Spanish anglais/espagnol inglés/español

TRADE POLICY REVIEW

BRUNEI DARUSSALAM

Minutes of Meeting

Addendum

Chairperson: H.E. Mr. Yonov Frederick Agah (Nigeria)

This document contains the advance written questions, and replies provided by Brunei Darussalam.1 __________________________________________________________________________________

Organe d'examen des politiques commerciales 25 et 27 février 2008

EXAMEN DES POLITIQUES COMMERCIALES

BRUNEI DARUSSALAM

Compte rendu de la réunion

Addendum

Présidente: H.E. M. Yonov Frederick Agah (Nigeria) Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par Brunei Darussalam.1

__________________________________________________________________________________

Órgano de Examen de las Políticas Comerciales 25 y 27 de febrero de 2008

EXAMEN DE LAS POLÍTICAS COMERCIALES

BRUNEI DARUSSALAM

Acta de la reunión

Addendum

Presidente: Excmo. Sr. Yonov Frederick Agah (Nigeria)

En el presente documento figuran las preguntas presentadas anticipadamente por escrito, junto con las respuestas facilitadas por Brunei Darussalam.1

1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.

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WRITTEN QUESTIONS BY MEMBERS CANADA REPORT BY THE GOVERNMENT (WT/TPR/G/196) No questions. REPORT BY THE SECRETARIAT (WT/TPR/S/196) Summary Observations; (5) Outlook; Page xiii, Paragraph 27: The Secretariat Report notes that "Foreign investment policies, while encouraging investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is restricted".

1. (a) What actions will the Government of Brunei take to improve the transparency of the foreign investment regime both in the near and long term? (b) Will the Government of Brunei issue a specific list of restricted sectors for foreign investment, including information on any limits on foreign equity holdings?

I. Economic Environment; (5) Outlook; Page 17, Paragraph 43: The Secretariat Report notes a “lack of transparency in government policies and the manner in which they are administered”, and a weak financial and statistical database with regards to “coverage, quality, timeliness and frequency”.

2. Is anything being done to improve the system in order to have a better and more effective way of data collection and timely dissemination of information?

III. Trade policies and Practices by Measure; (2) Measures directly affecting imports; (iv) Tariff bindings; Page 41, Paragraph, 28; The Secretariat Report states that “Brunei did not sign the WTO Agreement on Information Technology products”.

3. Could Brunei give further details on whether or not there are there any specific reasons for not signing the WTO Agreement on Information Technology products?

III. Trade Policies and Practices by Measures; (2) Measures Directly Affecting Imports; (viii) Standards and sanitary and phytosanitary measures; Pages 46-50: Canada notes that Brunei Darussalam has submitted two WTO SPS notifications, the last one in March, 2004.

4. Since then, has Brunei Darussalam changed or adopted any new SPS measures that affect international trade that were not notified to the WTO?

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III. Trade Policies and practices by Measure; (2) Measures directly affecting Imports; (ix) Government procurement; Page 52, Paragraph 59: The Secretariat Report states that “[t]ender notices are published in the Pelita Brunei at least two weeks before the closing date of a tender”. Canada notes that government tenders are often open for less than a month and this is a challenge for foreign companies interested in participating given the short timeframe for preparing the document and proposal.

5. What is the process and what are the criteria involved prior to the public announcement of a government tender? 6. Does Brunei have any plans to streamline the procurement process?

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (a) Overview; Page 60, Paragraph 97: According to the Secretariat Report for Brunei Darussalam, “Brunei has not joined the Paris Convention for the Protection of Industrial Property”.

7. Canada would appreciate Brunei’s views on whether it is considering joining this Convention.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (a) Overview; Page 60, Paragraph 98 & (b) Trademarks; Page 61, Paragraph 103: Canada notes that according to the Secretariat Report for Brunei Darussalam, “[the Criminal Justice Division of the Attorney General's Chambers] does not have a public awareness programme as it lacks capacity in implementing such a programme….The IP Section would benefit from appropriate technical assistance in this area as public awareness on IP in the country is considered generally low”. The Secretariat further notes that, “[f]oreign [trade mark] applications account for 99% of all applications received”.

8. Canada would be grateful if Brunei could advise whether it is considering requesting technical assistance from WIPO or the WTO to enable it to promote public awareness on IP.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Paragraph 105: According to the Secretariat Report, “Brunei provides protection for geographical indications under the Trade Marks Act (chapter 98)”.

9. Canada would be grateful if Brunei could elaborate on the protection granted to geographical indications and, in particular, which types of products can receive such protection.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Paragraph 107 & (f) Trade Secrets; Page 64, Paragraph 117: Canada notes that according to the Secretariat Report for Brunei Darussalam, “the Patents Order 1999 was expected to be implemented in 2001 to replace the Inventions Act, 1984” but according to the authorities, “it has yet to be implemented”. Similarly, the Secretariat Report states that “[t]he

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Ministry of Health is in the process of drafting legislation that will regulate the disclosure of information on medical products and cosmetics”.

10. Canada would appreciate if Brunei could provide an update on when these laws and regulations are expected to come into force.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 63, Paragraph 111: Canada notes that according to the Secretariat Report, “[t]he exclusive rights to the invention can only cease if the Sultan declares in a public statement […] that the exclusive right, or the way in which it is exercised, is detrimental to Brunei Darussalam or prejudicial to the public”.

11. Canada would appreciate if Brunei could provide details from examples of when patent rights have been deemed to be detrimental in this way.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (d) Copyright and related rights; Page 63, Paragraph 113: The Secretariat Report for Brunei Darussalam states that, “[the Copyright Order 1999] provides copyright protection for the creator's life plus 50 years for works…Copyright for published works is granted for 25 years from the year of the first publication.”

12. Canada would appreciate if Brunei could confirm the term of protection granted to published and unpublished works.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (g) Enforcement and penalties; Page 65, Paragraph 121: According to the Secretariat Report regarding trade mark and copyright cases, “[d]elays are attributed due to the unavailability of the complainant rights holder and necessary documents”.

13. Canada would be grateful if Brunei could provide: (a) its views on why complainant rights holders are sometimes unavailable; and (b) more information on the necessary documents.

IV. Trade Policies by Sector; (5) Services; (ii) Telecommunications; Page 85, Paragraph 71: The Secretariat notes that there are currently three telecommunications infrastructure providers which are locally owned and controlled, and, according to the authorities, there is currently no significant foreign participation.

14. Could Brunei Darussalam please clarify the extent of any foreign participation in these providers?

IV. Trade Policies by Sector; (5) Services; (ii) Telecommunications; Page 86, Paragraph 73: The Secretariat notes that although the licensing framework published by AiTi mandates a certain level of local loop unbundling (LLU), the lack of de facto LLU and competition in fixed-line telephony is one of AiTi's key issues.

15. Could Brunei Darussalam provide further information on the actions taken by AiTi to address these issues?

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The Secretariat notes that AiTi issues two types of licenses, the second of which, SeTi, applies to telecommunications resale.

16. Could Brunei Darussalam provide further information on the number of SeTi licenses issued to date, as well as the number of resale providers presently operating in Brunei Darussalam?

IV. Trade Policy by Sector; (2) Agriculture, Forestry, and Fishing; (i) Agriculture; Page 70, Paragraph 16: The Secretariat Report states that the “Imports of all meat and poultry products are subjects to Halal requirements and may only be sourced from government-approved abattoirs”.

17. Could Brunei Darussalam give further details on its Halal requirements/certification for imports of all meat and poultry products?

THE EUROPEAN COMMUNITIES I. ECONOMIC ENVIRONMENT (1) INTRODUCTION

WTO Secretariat’s Report, page 1, para. 1 & page 6, para. 7 According to paragraph 1, "The Government provides a wide range of free or heavily subsidized public services and employs 25% of the labour force". According to paragraph 7, “It is estimated that over 90% of the Bruneian labour force are employed by the public sector, including state-owned enterprises” [emphasis added].

1. Could Brunei Darussalam please clarify? WTO Secretariat’s Report, page 1, para. 1 According to the WTO Secretariat’s Report, “Some of its policies, practices, and measures, including those pertaining to trade and foreign investment, are rather opaque”.

2. How does Brunei Darussalam seek to increase transparency in this area? WTO Secretariat’s Report, page 1, para. 2 & page 72, para. 26 According to paragraph 2, “The country continues to owe its economic prosperity overwhelmingly to its abundant petroleum and natural gas resources […]”. However, paragraph 72 states: “According to two reports, Brunei’s oil reserves have to last 25 years or only another 10 years, at current rates of extraction. Brunei’s gas reserves […] are expected to last another 40 years”.

3. Could Brunei Darussalam please indicate how it seeks to maintain its current level of prosperity in the future?

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WTO Secretariat’s Report, page 2, para. 3 & page 16, para. 42 According to paragraph 2, “Since 2000, when the Government issued a landmark report acknowledging the country’s lack of a sufficiently diversified economic base, a series of plans to reduce unemployment, attract foreign investment, and restructure the economy away from over-dependence on limited petroleum reserves have largely failed to achieve the desired changes”. According to paragraph 16, “A key, internal, long-term risk continues to be the slow pace of the Government’s diversification programme”.

4. Could Brunei Darussalam please elaborate on how it seeks to enhance the effectiveness of its diversification programmes?

(2) RECENT ECONOMIC DEVELOPMENTS (i) Macroeconomic performance (b) Employment WTO Secretariat’s report, page 6, para. 7&8 According to paragraph 7, the “Bruneization” policy encourages companies to give preference to Bruneians in their employment policies. However, paragraph 8 states that there is a “need for foreign workers”, particularly in the financial sector.

5. Could Brunei please indicate how it seeks to make its “Bruneization” policy fit with the need for foreign workers for its economy?

(c) Prices WTO Secretariat’s Report, page 6, para. 11 It is stated that “Inflation continues to be constrained by the imposition of price controls and subsidies on essential foods and petrol”.

6. Does Brunei Darussalam share the view of the WTO Secretariat’s Report? (ii) Macroeconomic policies (a) Fiscal policy WTO Secretariat’s Report, page 8, para. 19 The aim of a “clean and healthy environment” is stated.

7. Could Brunei Darussalam please indicate how it seeks to reconcile economic growth, and particularly the increasing importance of the fishery sector for its economy, with the aim of sustainable development?

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WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28 According to paragraph 20, “Information on the General Reserve Fund, administered by the autonomous Brunei Investment Agency is not available as the BIA presents its accounts only to the Sultan”. According to paragraph 10, “[…] the lack of available data on the Government’s investment income renders the level of transparency of the BIA rather low”.

8. Why are data on the BIA lacking?

9. Does Brunei Darussalam seek to increase the level of transparency with regards to BIA activities? If so, when?

(b) Monetary and exchange rate policies WTO Secretariat’s Report, page 10, para. 23 It is stated that “One possible disadvantage is that the resulting steady effective appreciation of the Brunei dollar may impede the Government’s efforts to diversify the economy and develop export industries”.

10. Does Brunei Darussalam share the WTO Secretariat’s view? (iv) Structural policies: diversification of the economy WTO Secretariat’s Report, page 11, para. 29 According to the WTO Secretariat’s Report, “[…] The strategy to achieve these goals was based on a broad corporatization/privatization effort, greater foreign investment, and a more competitive labour market”.

11. Could Brunei Darussalam please indicate whether it plans to further undertake liberalization efforts? If so, in which sectors?

WTO Secretariat’s Report, page 11, para. 31 It is stated that “[…] there continues to be a strong government presence in the economy, often in the form of state-owned monopolies, which can act unencumbered by any competition law”.

12. Could Brunei Darussalam please elaborate on its reasons for not having any competition law?

13. Does Brunei Darussalam seek to introduce competition law? “The very small size of the domestic market seems to discourage local and foreign participation in the economy […]”.

14. Could Brunei Darussalam please indicate whether it intends to benefit from economies of scale by intensifying regional integration efforts?

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(3) DEVELOPMENTS IN TRADE (i) Composition of trade (a) Trade in goods WTO Secretariat’s report, page 12, para. 35 According to the WTO Secretariat’s Report, “Brunei imports almost everything, including most foodstuffs and beverages”.

15. Could Brunei Darussalam please explain if and how it wishes to meet the criterion of economic self-sufficiency?

(ii) Direction of trade WTO Secretariat’s Report, page 15, para. 38 According to the WTO Secretariat’s Report, “[…] the lowering of trade barriers within the ASEAN region through the ASEAN Free-Trade Agreement (AFTA) may have led to some trade diversion”.

16. Does Brunei Darussalam share the WTO Secretariat’s view? (5) OUTLOOK WTO Secretariat’s Report, page 17, para. 43 According to the WTO Secretariat’s Report, “Lack of reliable and timely data on, inter alia, investment income, balance of payments, monetary statistics, the labour market, and the national accounts, as well as scant or non-existent information about progress under the latest National Development Plan appear to highlight the general lack of transparency, and thus public accountability, in the management of the economy”.

17. How does Brunei Darussalam seek to improve data and statistics in these areas? II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (2) TRADE POLICY OBJECTIVES AND ADMINISTRATION (i) Objectives WTO Secretariat’s Report, page 20, para. 13 According to the WTO Secretariat’s Report, “The Brunei Economic Development Board (BEDB) was set up in November 2001 to stimulate growth, expansion, and development of the economy by promoting Brunei as an investment destination”. In the World Bank's Doing Business Report for 2008, Brunei scores 78 among 178 countries included in the report. Some of the biggest obstacles lie in starting up a business, where a company needs to go through 18 procedures taking 116 days to complete. According to the report, no reform progress has been made during the surveyed year.

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18. Could Brunei Darussalam please elaborate on its reform plans in the short term in order to address these shortcomings in light of the Government’s goal of encouraging the establishment of more private companies in the non-oil and gas sector?

(3) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Regional agreements (a) ASEAN Brunei Darussalam’s Report, page 6, para. 10 & WTO Secretariat’s Report, page. 24-26, para. 25-31 The EC takes note of the fact that no reference is made to the ongoing EU-ASEAN Free Trade Agreement negotiations which were launched on 4 May 2007 whereas Brunei’s report refers to them as “to begin in the near future”.

19. Does Brunei Darussalam consider updating this language by mentioning that negotiations were launched on 4 May 2007?

(d) Trans-Pacific SEP Brunei Darussalam’s Report, page 7, para. 15 According to Brunei Darussalam’s Report, “The Trans-Pacific Strategic Economic Partnership Agreement also has side agreements, namely the Environment Cooperation Agreement and Labour Cooperation Memorandum of Understanding, to reflect a shared desire to encourage and promote sound labour and environment practices. These agreements establish mechanisms for ongoing cooperation and dialogue on labour and environment issues”

20. Could Brunei Darussalam please elaborate on the specific actions taken “to encourage and promote sound labour practices”?

21. In particular, what kinds of mechanisms for ongoing cooperation and dialogue on labour issues are being established?

WTO Secretariat's Report, page 27, para. 37 The WTO Secretariat's Report refers to upcoming Trans-Pacific SEP negotiations.

22. Could Brunei Darussalam please indicate if evolutions of the regulatory framework for financial services contemplated in light of the negotiations on financial services are taking place this year in the context of the Trans-Pacific Strategic Economic Partnership Agreement?

(iii) Bilateral agreements WTO Secretariat’s Report, page 29, para. 40 According to the WTO Secretariat’s Report, “In December 2002, Brunei and the United States signed a Trade and Investment Framework Agreement (TIFA) […] It also includes consultations on the elements of a possible free trade agreement”.

23. Could Brunei Darussalam please elaborate on the progress of consultations of such a possible free trade agreement?

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(4) FOREIGN INVESTMENT REGIME WTO Secretariat’s Report, page xiii, para. 27 According to the WTO Secretariat’s Report, “Foreign investment policies, while encouraging investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is restricted, thereby providing scope for discretion in government decision-making”.

24. Could Brunei Darussalam please elaborate on its foreign investment policies, taking into account the above-mentioned assertion and explain how it reconciles discretion on foreign ownership caps with investors' need for predictability and legal certainty?

(i) Legislative and institutional framework and investment procedures WTO Secretariat’s Report, page 29, para. 44 It is stated that “Foreign nationals are generally not permitted to own land […]”.

25. Could Brunei Darussalam please elaborate on the reasons for this prohibition?

26. Does Brunei Darussalam seek to change this policy? III. TRADE POLICIES AND PRACTICES BY MEASURE (1) OVERVIEW WTO Secretariat’s Report, page 33, para. 2 It is stated that the gap between the applied and bound tariff rates “can bring about uncertainty for traders and other economic agents as it provides scope for the authorities to raise applied tariffs”.

27. Does Brunei Darussalam share the WTO Secretariat’s assessment? WTO Secretariat’s Report, page 33, para. 5 & page 51, para. 56 Paragraph 5 states that “Government procurement remains an important instrument of economic policy, and government construction activities, in particular, play a major part not only in the construction industry, but in the economy as a whole. Brunei is not a signatory to the WTO Government Procurement Agreement”. Paragraph 56 states that “[…] the authorities state that further study is needed before the Government can make a decision”.

28. Given the fact that government procurement is an important policy instrument in Brunei Darussalam, does Brunei Darussalam consider joining the WTO Government Procurement Agreement?

29. Which further study is necessary before Brunei Darussalam can make a decision on joining the WTO Government Procurement Agreement?

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WTO Secretariat’s Report, page 34, para. 8 According to the WTO Secretariat’s Report, “Brunei does not appear to have a strong record in IPR enforcement”.

30. Which steps is Brunei Darussalam undertaking in order to improve its IPR enforcement record?

(2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs procedures WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36 It is mentioned that Brunei maintains import restrictions on certain goods for health, sanitary and phytosanitary reasons as well as moral reasons, which for example includes import restrictions on live cattle and poultry.

31. Could Brunei Darussalam please confirm that these restrictions are fully in line with the SPS agreement, and as such, do not violate the OIE Terrestrial Animal Health Code 2007?

(iii) Applied tariff (a) Structure of the MFN tariff WTO Secretariat’s Report, page 38, para. 20 It is stated that “As information was not available on ad valorem equivalents for the specific rates, the 131 lines, which cover mainly cigarettes, alcoholic beverages, coffee, tea, petroleum oils, and lubricants, are not included in the tariff analysis in this report”.

32. Does Brunei Darussalam intend to make information available with regards to the 131 lines? “High rates of smuggling” are also mentioned.

33. Which steps is Brunei Darussalam undertaking in order to reduce these high rates of smuggling?

(iv) Tariff bindings WTO Secretariat’s Report, page 41, para. 28 According to the WTO Secretariat’s Report, “Brunei did not sign the WTO Agreement on Information Technology Products”.

34. Does Brunei Darussalam intend to sign the WTO Agreement on Information Technology Products?

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(v) Other charges affecting imports WTO Secretariat’s Report, page 43, para. 30 The possibility for the Minister of Finance to impose and revoke excise taxes on any goods as deemed appropriate could create uncertainty for private companies.

35. Could Brunei Darussalam please elaborate on the criteria according to which goods could be subject to excise? If no such regulations/criteria are in place, could Brunei Darussalam please indicate if regulations are in the making?

(viii) Standards and sanitary and phytosanitary measures

36. Could Brunei Darussalam please explain why authorities request a sanitary certificate for each European olive oil imported?

(b) Sanitary and phytosanitary measures WTO Secretariat's Report, page 49, para. 45 According to the WTO Secretariat's Report, "Following the outbreak of avian flu in several countries, the Brunei Government imposed an import ban on all types of poultry products from countries affected by, or suspected of having, avian flu outbreaks". With regard to Avian Influenza could Brunei please provide information on the following:

37. Could Brunei Darussalam ensure that it applies all OIE recommendations with regard to import restrictions for reasons of avian influenza (AI)?

38. If not, please could Brunei Darussalam please clarify and explain whether Brunei is considering bringing its measures in line with OIE recommendations?

The OIE recommendations (Article 2.7.12.20) state that heat-treated meat (following a process which ensures destruction of AI virus) can be safely traded regardless of the AI status of the exporting country.

39. Could Brunei Darussalam ensure that import restrictions are not being applied to EU exports of heat-treated poultry products?

40. If so, could Brunei ensure that import restrictions are in accordance to the above-mentioned OIE recommendations?

An exporting country can re-gain its AI free status after 90 days with no outbreaks, in accordance with the OIE Animal Health Code. The EC would also like to point out that, according to the OIE, countries with outbreaks of AI only in the wild bird population should not suffer any import restrictions on poultry products.

41. Is Brunei Darussalam following the above-mentioned approach, in accordance with international recommendations?

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WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16 According to paragraph 46, "Under the Halal Meat Act, the Board for Issuing Halal Import Permits grants the permit if the slaughterhouse is already on a list approved by the Majlis Ugama Islam; for slaughterhouses not on the list, an inspection committee, including representatives from the Ministry of Religious Affairs, the Majlis, the Ministry of Health, and the Department of Agriculture is required to inspect and approve the abattoir. The Board forwards the application to the Majlis who makes the final decision on issuing the import permit". According to paragraph 16, "Imports of all meat and poultry products are subject to Halal requirements and may only be sourced from government-approved abattoirs". The EC has no intention to contest the legitimacy of the Halal Meat Act. However, the EC would like to highlight that the system of abattoir approval implies that a lengthy procedure of approval has to be performed for every single establishment wishing to export agricultural products to Brunei Darussalam including on the spot inspection visits carried out by Bruneian officials.

42. The EC would like to know if Brunei Darussalam considers amending the relevant legislation in order to allow for EU exports of agricultural products to benefit also from a similar system of pre-listing and so as to make it not more trade restrictive than necessary to fulfil its legitimate objective?

By way of example, the EC does not impose a lengthy approval system on countries wishing to export to the EU. Moreover, the EC practice is to allow third countries to authorise the establishment to export to the EC by themselves, once the country itself has been approved. This is the so-called prelisting system. (ix) Government procurement (a) Overview WTO Secretariat’s Report, page 50, para. 53 It is stated that “Although foreign suppliers can participate in government tenders, most retain a local agent to represent them in Brunei, as corporate relationships with the Government are of great importance”.

43. Is the presence of a local agent compulsory for foreign suppliers or is it just advisable? It is further stated that “Teamed with a good local agent with the appropriate connections and knowledge of local business practices, foreign suppliers have a better chance of winning contracts”.

44. Which steps is Brunei Darussalam undertaking in order to increase the chances of foreign suppliers without local knowledge?

WTO Secretariat’s Report, page 51, para. 54 According to the WTO Secretariat’s Report, “The notification timeframe from receiving tender recommendations to award of contracts is approximately a month”.

45. How much can this figure vary and under which conditions?

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(b) Tendering procedures WTO Secretariat’s Report, page 52, para. 58 According to the WTO Secretariat’s Report, “No detailed data were available from the authorities concerning the breakdown of procurement contracts awarded and their values by tender method”.

46. Does Brunei Darussalam intend to make data on the breakdown of procurement contracts available? If so, when?

(x) Import-related operations of state enterprises WTO Secretariats Report, page 52, para. 61 & page 54, para. 70 According to paragraph 61, “Brunei has not notified any state-trading enterprises to the WTO”. According to paragraph 70, “No information was available to the Secretariat on exports by state enterprises”.

47. Could Brunei Darussalam please confirm that there are no state-trading enterprises?

48. If state-trading enterprises exist, could Brunei Darussalam please explain if and when it intends to notify them to the WTO?

(4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Legal framework for businesses WTO Secretariat’s Report, page 54, para. 73 According to the WTO Secretariat’s Report, “At least half the directors of a company incorporated in Brunei must be either nationals of Brunei or ordinary resident in Brunei”.

49. Could Brunei Darussalam please elaborate on the rationale of this policy? (iii) Incentives (b) Tax incentives WTO Secretariat’s Report, page 56, para. 81 According to the WTO Secretariat’s Report, “Brunei’s economic development might be better served by a more broadly-based corporate income tax system involving fewer incentives, but with a tax rate substantially lower than the 30% currently levied”.

50. Does Brunei Darussalam share the WTO Secretariat’s assessment?

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(v) The public sector and private investment (a) The public sector WTO Secretariat’s Report, page 58, para. 89 According to the WTO Secretariat’s Report, “Public sector monopolies also appear to exist in key infrastructure sectors, including electricity, and water” [emphasis added].

51. Could Brunei Darussalam confirm if such public sector monopolies exist?

52. If so, does Brunei Darussalam intend to keep these monopolies? If so, why? WTO Secretariat’s Report, page 58, para. 91 The Government through various efforts encourages expansion of the non-oil and gas sector and is said to aiming at reducing direct Government involvement in the economy. Nevertheless, Government enterprises are directly involved in several sectors of the economy, which could be run by private companies, including SMEs.

53. Could Brunei Darussalam please elaborate on the efforts it is pursuing in order to reduce the role of state-owned enterprises, in particular in commercially viable sectors?

54. How has the contribution of state-owned enterprises to the national economy evolved since the introduction of the Eighth National Development Plan?

(vi) Competition policy WTO Secretariat's Report, page 60, para. 96 It is stated that, "According to Brunei's APEC Individual Action Plan, it has no specific legislation on competition policy but it is considering competition policies in line with APEC principles".

55. Could Brunei Darussalam please provide more information on the process and the timescale for the announced adoption of "competition policies in line with APEC principles"?

(vii) Intellectual property rights (b) Trade marks WTO Secretariat’s Report, page 61, para. 102 According to the WTO Secretariat’s Report, “Under the Act, a foreign applicant must provide an address in Brunei Darussalam for all related correspondence from the Registrar”.

56. Could Brunei Darussalam please elaborate on the rationale of this policy?

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(c) Patents WTO Secretariat’s Report, page x, para. 15 According to the WTO Secretariat’s Report, Brunei Darussalam “still needs to implement its Patent Order (that dates from 1999) to provide patent protection for, inter alia, pharmaceutical and agricultural products and processes”.

57. Could Brunei Darussalam please elaborate on the measures it is implementing in order to protect the intellectual property rights especially in pharmaceutical and agricultural sectors?

WTO Secretariat’s Report, page 62, para. 107 It is stated that “Due to a lack of qualified persons and expertise substantive examination for patentability will be conducted abroad under a referral arrangement with foreign patent offices”.

58. Could Brunei Darussalam please elaborate on the role of these foreign patent offices?

59. How is confidentially ensured? (g) Enforcement and penalties WTO Secretariat’s Report, page 64, para. 118

60. Is Brunei Darussalam aiming at introducing legislation on disclosure of information on medical products and cosmetics? If so, when?

61. Could Brunei Darussalam confirm that such legislation will be fully aligned with the TRIPS

Agreement in this respect?

IV. TRADE POLICIES BY SECTOR (4) NON-OIL AND GAS SECTOR (i) Production and trade WTO Secretariat’s Report, page 71, para. 23 According to the WTO Secretariat’s Report, “Brunei’s economy has followed the swings of the world oil market […]”.

62. Which steps is Brunei Darussalam undertaking in order to decrease its economic dependence on the swings of the world oil market?

(ii) Oil and gas industry (a) Petroleum refining and other downstream activities WTO Secretariat’s Report, page 75, para. 33 According to the WTO Secretariat’s Report, “The Government is keen to encourage investment in downstream activities […]”.

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63. Could Brunei Darussalam please elaborate on the nature of the liberalisation regime for foreign service providers willing to supply energy products distribution services?

64. In light of the importance of the oil and gas sector for Brunei's economy, what is the current liberalisation regime and what are the conditions ruling the provision of energy-related services by foreign service providers to those companies licensed to exploit the hydrocarbon resources?

65. Is Brunei Darussalam considering undertaking commitments and reflecting its actual level of liberalisation in energy-related services sectors, as suggested notably in the collective request on energy-related services?

(5) SERVICES (i) Overview WTO Secretariat’s Report, page 78, para. 49 According to the WTO Secretariat’s Report, “Recognizing the importance of services for economic growth, the Government aims to transform Brunei into a service hub for trade and tourism (SHuTT)”.

66. In light of plans to turn Brunei Darussalam into a services hub for trade and tourism, could Brunei Darussalam please elaborate on the conditions applying to foreign services suppliers interested in providing restaurant, hotel, travel agencies, and tour operator services in Brunei?

67. Could Brunei Darussalam please explain if consideration is given to further liberalisation of tourism and travel-related services, as well as of infrastructure sectors that play a crucial role in the development of an efficient tourism industry such as transport and construction services?

WTO Secretariat’s Report, page 78, para. 51 According to the WTO Secretariat’s Report, "The authorities have indicated that they intend to revise their offer at an appropriate time in the DDA negotiations".

68. Could Brunei Darussalam please inform us about the content of the new offer that the authorities indicated to revise in relation to future liberalisation?

AUSTRALIA

II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 1. The Secretariat report notes that “(t)he institutional framework is characterized by a lack of transparency with respect to trade and trade-related policies, to the detriment of government accountability” (WT/TPR/S/196, page 18, paragraph 2). The Report by Brunei Darussalam does not appear to contain any statements that address this issue. What are Brunei Darussalam’s current policies and practices relating to the publication of trade measures and what steps is it taking to improve transparency in this area?

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(3) TRADE AGREEMENTS AND ARRANGEMENTS (i) Multilateral agreements 2. Like all WTO Members, Brunei Darussalam is required to make regular notifications to the WTO in accordance with various WTO provisions (WT/TPR/S/196, page 24, paragraph 23 and page 104, Table AII.1). Brunei Darussalam has several regular WTO notifications outstanding, including notifications for agriculture domestic support and state trading enterprises. Could Brunei Darussalam advise when it will be able to provide WTO Members with these notifications? (4) FOREIGN INVESTMENT REGIME 3. The Secretariat report notes that in relation to foreign investment, “only activities relating to national food security and those based on natural resources require local equity participation” (WT/TPR/S/196, page 29, paragraph 43). How does Brunei define the concept of “national food security” and the range of activities/products that are covered by that concept? III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (iii) Applied tariff 4. Australia notes Brunei Darussalam’s relatively low average applied MFN tariff (WT/TPR/G/196, page 7, page 19). The Secretariat was, however, unable to include in its tariff analysis the specific tariff rates on 131 lines as information on ad valorem equivalents was not available (WT/TPR/S/196, page 38, paragraph 20). Could Brunei Darussalam provide ad valorem equivalents for the specific tariff rates applied to various products such as cigarettes, alcoholic beverages, coffee, tea, petroleum oils and lubricants? 5. What is Brunei Darussalam’s policy rationale for the maintenance of high tariffs on wood and wood products, and certain machinery and appliances, vehicles and vehicle parts and precision instruments and apparatus? Is Brunei taking any steps to review these policy settings and reduce those tariffs? (iv) Tariff bindings 6. What are Brunei Darussalam’s reasons for not having become a party to the WTO Information Technology Agreement? Does Brunei Darusssalam apply tariffs to information technology products? 7. Within the Doha Round non-agricultural market access (NAMA) negotiations, provision has been created for “small, vulnerable economies” not to apply the general tariff reduction formula modality to their bound tariffs. Members with less than 0.1% share of world trade may have access to this provision. Can Brunei Darussalam clarify as to whether it considers itself to be a small, vulnerable economy, or whether it would anticipate applying the same general tariff reduction formula modality as other developing countries? (ix) Government procurement 8. The Secretariat report (WT/TPR/S/196, page 51, paragraph 56) notes that Brunei is not a signatory to the WTO Government Procurement Agreement, and that “the authorities state that further study is needed before the Government can make a decision”. It is, however, noted that coverage

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under the Trans-Pacific Strategic Economic Partnership (SEP) Agreement is extensive and that Brunei Darussalam has been given two years (from July 2006) to negotiate its government procurement schedule. The Report by Brunei Darussalam notes that it is preparing its list for entities under the Government Procurement chapter (WT/TPR/G/196, page 7, paragraph 15). What progress has Brunei made in negotiating its government procurement schedule under the Trans-Pacific SEP Agreement? Could these commitments form a basis for broader liberalisation of its government procurement activities and accession to the WTO Government Procurement Agreement? If so, to what extent? (4) MEASURES AFFECTING PRODUCTION AND TRADE (vii) Intellectual property rights 9. Australia notes that enforcement of intellectual property (IP) rights is based on complaints lodged by the registered owner (WT/TPR/G/196, page 10, paragraph 31). What process does a right holder have to undertake to lodge a complaint and how is the complaint processed? 10. Under Brunei Darussalam’s current statutory regime, police powers of investigation of IP criminal offences are also dependant upon the receipt of a complaint by the right holder (WT/TPR/S/196, page 64, paragraph 118). Are there any circumstances where criminal investigations may be launched by the police without receiving a complaint? If so, please provide examples. 11. Australia notes that Brunei Darussalam’s Copyright Order is being amended (WT/TPR/S/196, page 64, paragraph 114). Are further details about the amendments available, and when are the amendments expected to enter into force? 12. Australia notes and welcomes Brunei Darussalam’s work regarding electronic filing of trade mark applications (WT/TPR/S/196, page 61, paragraph 104). Can Brunei Darussalam cofnirm that the project was completed by end 2007 as expected? 13. Australia notes the reluctance of right holders to protect their own rights through border enforcement provisions under the relevant IP legislation (WT/TPR/G/196, page 10, paragraph 33). Why are right holders reluctant to rely on these measures?

IV. TRADE POLICIES BY SECTOR (2) AGRICULTURE, FORESTRY, AND FISHING (i) Agriculture 14. Australia notes that as part of Brunei Darussalam’s diversification program (Eighth Plan), B$90.5 million was allocated to agriculture from 2001-05 to encourage development within that sector (WT/TPR/S/196, page 68, paragraph 9). How does Brunei Darussalam intend to notify the programs arising from this funding in its domestic support notification in accordance with Article 18.2 of the Agreement on Agriculture? 15. The Secretariat’s report (WT/TPR/S/196, page 68-69, paragraph 11 and footnote 4) states that the government of Brunei Darussalam used various schemes, such as price support, to increase rice production. How does Brunei Darussalam’s end-product subsidy scheme for rice producers operate? Would Brunei Darussalam confirm that this support would form part of its Current Total Aggregate Measure of Support (AMS) calculation?

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(5) SERVICES 16. The Secretariat report notes that foreigners may be allowed to hold up to 100 per cent of the equity in certain industries and activities in which the Government wishes to encourage investment (WT/TPR/S/196, page 29, paragraph 44). The Secretariat report also identifies some of the industry sectors in which Brunei is seeking to encourage foreign investment: transport and logistics, business services, financial services, and hospitality and tourism (Box II.2 on page 31). To what extent does Brunei take into account the role that improved GATS commitments could play in advancing the objectives of the Economic Development Board’s economic diversification strategy? 17. Australia notes Brunei's current GATS Mode 4 commitments regarding managers, executives and specialists but understands that current domestic regulation limits holders of relevant visas to a single entry. In Australia's view, multiple entry visas for short term service suppliers facilitate increased trade in services and investment. Is Brunei considering altering its current visa regulations to permit multiple entry by temporary entry visa holders? 18. Australia is disappointed by Brunei's MFN exemption on legal services and its failure to make or offer any commitments on legal services. Is Brunei considering any legislative change that would enable it to make legal services commitments in future? UNITED STATES WT/TPR/S/196 TRADE POLICY FRAMEWORK Transparency One theme of the Secretariat Report is the need for greater transparency in government policies and the manner in which they are administered (see, for instance, Summary Observations page viii). As examples, the Report mentions the availability of information about foreign investment policies; the coverage, quality, timeliness, and frequency of financial statistics; information about the National Development Plan and its progress; and the procurement and trading activities of state enterprises. • What steps is Brunei contemplating to improve the transparency of its policies and activities

in these areas? TRADE POLICY AND PRACTICES BY MEASURE Import Restrictions and Licensing The information on imports subject to licensing described (on page 46 paragraph 35 of the Secretariat Report as well as in Table AIII.2) appears to be different from the products listed in Brunei’s import licensing questionnaire (G/LIC/N/3/BRN/1), including with respect to some important U.S. exports such as medical products and telecommunications equipment. We would appreciate information on Brunei’s plans for updating its import licensing notifications.

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Standards and Sanitary and Phytosanitary Measures The United States acknowledges the recent WTO TBT notification from Brunei on its proposed halal requirements. The United States is in the process of reviewing this notification and providing comments on the proposed measure. We note that the Secretariat Report (page 49 paragraph 46) refers to the permit requirements in the Halal Meat Act and the Halal Certificate and Halal Label Order 2005. At the time of publication, halal meat and poultry could only be imported from Malaysia and Australia. The Report adds that live cattle are imported from Brunei's state-owned cattle farm located in northern Australia. Based on this information, we have the following questions: • Will Brunei's halal requirements and the process for obtaining approvals be available online?

If yes, please identify the website. If not, where will the final rules and requirements be published?

• Regarding restrictions on beef and poultry, what steps must foreign slaughterhouses (abattoirs) take in order for the Minister of Religious Affairs to approve these products for importation into Brunei?

• Are Malaysia and Australia the only WTO Members with approved abattoirs? To date, how many foreign abattoirs has Brunei approved? How long is the approval process?

• Will Brunei’s halal requirements allow for the use of facilities that have been properly cleaned in accordance with Islamic requirements, if they have been used once for non-halal foods? If not, please explain.

• Does Brunei require all food processing plants in foreign countries to undergo site inspection as a condition for approval?

• Do food ingredients like additives, preservatives and coloring require Brunei’s religious authorities’ approval?

State Trading According to the Secretariat Report (page 54 paragraph 70), little information is available about the trading activities of state enterprises including the Ministry of Finance’s Department of Information Technology and State Stores, which handles rice imports, and we could find no notifications to the Working Party on State Enterprises. In light of the important role played by state enterprises in Brunei, we urge the government of Brunei to submit these notifications. Does Brunei have plans do so?

Subsidies

The Secretariat Report identifies several subsidy programs that appear to be notifiable under Article 25 of the Agreement on Subsidies and Countervailing Measures. These include the Investment Incentives Order 2001, the Pioneer Status and Income Tax Relief program, and other tax and tariff exemptions for companies investing in the Brunei-Indonesia-Malaysia-Philippines East Asian Growth Area (BIMP-EAGA). The Secretariat's Report also notes that the only subsidies notification Brunei has submitted pursuant to Article 25 of the Agreement on Subsidies and Countervailing Measures was in 1997. What are Brunei’s plans for submitting its next subsidies notification?

Intellectual Property Rights When does Brunei expect to implement the Patent Order of 1999 (page 62 paragraph 107 of the Secretariat Report)? On copyrights and related rights (page 64 paragraph 114 of the Secretariat Report), what is the status of the amendments to the Copyright Order? What is Brunei’s projected timing for implementation?

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• Will the amendments contain provisions to address enforcement against infringements in the

digital environment and electronic commerce? • Are there plans to increase public awareness activities regarding the importance of IPR

enforcement in the digital realm? • Is Brunei considering giving ex officio authority to Police and Customs officials to enforce

against pirated works? Providing ex officio authority to law enforcement would remove the need for rights holders to participate in every case, which is not possible for many rights holders because of resource constraints, while allowing authorities to act against illicit goods.

Does Brunei intend to accede to the WIPO Internet Treaties? With respect to copyright and related rights (page 65 paragraph 119 of the Secretariat Report), what process should rights holders follow to invoke border enforcement measures to prevent import of infringing goods? Is this information available to the public? With respect to criminal cases, what is the process for rights holders to follow in filing a complaint? Is this information available to the public? How does Brunei prevent unauthorized uses of well-known marks on dissimilar goods? (Per TRIPS Article 16(3), WTO members must prevent unauthorized uses of registered, well-known trademarks, even if those uses are on goods or services that are dissimilar to the goods/services associated with the well-known mark if (1) the unauthorized use would suggest a false connection between the goods and the owner of the well-known trademark, and (2) the use damages the trademark owner’s interests.) Do the marks that Brunei has registered as certification marks include marks that are geographical indications? Regarding intellectual property rights enforcement and penalties (page 66 paragraph 125 of the Secretariat Report), how many criminal prosecutions have been undertaken due to offenses under the Trade Marks Act of 1999? What types of penalties were imposed? TRADE POLICIES AND PRACTICES BY SECTOR Agriculture Page 70 paragraph 15 of the Secretariat Report comments that "some agricultural products, i.e., rice, sugar, and salt, are subject to import restrictions.” The Secretariat Report also says “most of Brunei's rice is imported directly by the Department of Information Technology and State Stores under a government-to-government contract from Thailand." • What specific restrictions are in place on these products? Please provide a complete list of

agricultural products facing such import restrictions. • Are licenses required to import rice, sugar, and salt? What is the procedure for obtaining such

licenses? Has Brunei included this information in its WTO import licensing notifications? Page 70 paragraph 16 of the Secretariat Report notes that imports of beef and poultry are subject to a "food balancing requirement,” apparently adjusting imports to meet expected demand.

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• What is the process for determining import volumes? Is the process public? What ministry or agency makes the determination? Is the decision published in a gazette or other public notice?

Forestry Page 70 paragraph 18 of the Secretariat Report mentions that illegal logging appears to be increasing near border areas. We know Brunei attaches great importance to conservation and sustainable forestry management. We would welcome an update on Brunei’s own efforts to curb illegal logging and its associated trade, as well as the government’s cooperative efforts with its neighbours, including the tri-national effort to protect the Heart of Borneo. Services Page 78, paragraph 49 of the Secretariat Report: Brunei recognizes the importance of services for economic growth and diversification and has developed the Service Hub for Trade and Tourism (SHuTT) to promote priority services sectors. • Please describe the substance and operation of the SHuTT program. What is the basis upon

which Brunei determines which of its services sectors is a priority? How does Brunei promote priority services sectors?

• Brunei has identified tourism as a priority sector and has set a target of 250,000 tourists by

2010. How does Brunei intend to reach this goal? What further actions is Brunei taking to develop related industries such as transport, communications, and banking services?

• Is Brunei considering additional commitments in the GATS as a way to reflect the importance

of services to the diversification and growth of Brunei’s economy? Page 81, Paragraph 61 of the Secretariat Report. The Secretariat Report mentioned that Brunei had hoped to harmonize Islamic and conventional banking regulations by 2007. Could Brunei inform us of the current timeline to complete this harmonization? Which regulations require harmonization? What is the status of the new Islamic Banking Order 2007? COLOMBIA Reporte de la Secretaría WT/TPR/S/196 Preguntas: II. REGIMEN DE POLÍTICA COMERCIAL: MARCO Y OBJETIVOS 4) Régimen de Inversiones Extranjeras i) Marco legislativo e institucional y procedimientos de inversión “45. …La Autoridad para el Desarrollo Industrial de Brunei (BINA) ha desarrollado varios polígonos industriales cerca del Puerto de Muara y en otras partes de Brunei, con infraestructura para facilitar el establecimiento de pequeñas y medianas empresas.” • ¿Cuál es la diferencia entre los polígonos industriales, las zonas de elaboración para la

exportación y los parques industriales?

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• ¿Qué tipo de incentivos se otorgan a las empresas que se instalen en los polígonos industriales?

• ¿Cuál es el monto del presupuesto asignado por el Gobierno de Brunei anualmente para los incentivos que se otorgan en los polígonos industriales?

• ¿Pueden las empresas nacionales o locales de Brunei instalarse en los polígonos industriales?. En caso afirmativo, ¿Las empresas nacionales o locales de Brunei reciben los mismos incentivos que las empresas extranjeras localizadas en dichos polígonos?

• ¿Empresas de cualquier sector pueden localizarse en los polígonos industriales? “47. Además, la BEDB (Junta de Desarrollo Económico de Brunei) anunció importantes incentivos y préstamos para fomentar otros proyectos de inversión del Extranjero. Consultorías internacionales han confirmado el potencial de crecimiento que encierran los siguientes sectores: hotelería y turismo, principalmente turismo ecológico, turismo deportivo y turismo médico; servicios financieros especialmente servicios especializados de alta calidad de gestión de inversiones y de fondos de activos; servicios de transporte y logística, centrados principalmente en los servicios de mantenimiento de aeronaves; y servicios prestados a las empresas, centrados en el desarrollo de programas informáticos y la contratación externa de procesos empresariales”. • ¿Cuáles son los incentivos anunciados en este párrafo por parte de la BEDB para otros

proyectos de inversión del extranjero? • ¿Se aplican a las inversiones enunciadas en este párrafo exenciones fiscales adicionales a las

mencionadas en el Cuadro AIII.3? • ¿Los interés a los préstamos anunciados para fomentar otros proyectos de inversión del

extranjero tendrán tasas de interés especiales o subvencionadas por el Gobierno de Brunei? III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS viii) Normas y medidas sanitarias y fitosanitarias. “47. La ley de Sustancias Tóxicas y el Reglamento sobre Uso Indebido de Medicamentos, cuya aplicación corresponde al Servicio de Observancia Farmacéutica del Ministerio de Salud, prevén otras restricciones sanitarias. En particular, contienen la reglamentación de todas las importaciones y exportaciones de productos farmacéuticos, químicos y agroquímicos, plaguicidas, etc., con asistencia del Departamento de Aduanas….”.

• ¿Cómo o donde puede obtenerse las reglamentaciones mencionadas en este párrafo? • ¿Se encuentran estas reglamentaciones en idioma inglés? • ¿Cómo o donde pueden obtenerse las reglamentaciones vegetales y las reglamentaciones

zoosanitarias que se mencionan en los párrafos 44 y 45 de esta misma sección, en idioma inglés?

ix) Operaciones de empresas estatales relacionadas con las importaciones. “61. Brunei no ha notificado a la OMC la existencia de empresas de comercio de Estado. A través del Departamento de Tecnología de la Información y Almacenes del Estado, del Ministerio de Finanzas, el Estado importa directamente ciertos productos sujetos a restricciones y licencias de importación, tales como arroz y el azúcar. En concreto, el Departamento importa gran parte del arroz de Brunei a través de BruSiam Food Alliance, empresa mixta de los Estados de Brunei y Tailandia. El Departamento expide también permisos para la importación de otros productos sujetos a restricciones, tales como sal.

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• Además de arroz, azúcar y sal, ¿Qué otros productos agropecuarios y no agropecuarios requieren permiso para su importación en Brunei?

IV. POLÍTICAS COMERCIALES, POR SECTORES 5) Servicios ii) Servicios Financieros. “63. Para diversificar los servicios financieros en Brunei y hacer de dicho país un centro bancario y de negocios extraterritorial en la región, el Gobierno creó el Centro Financiero internacional de Brunei (BIFC) en 2000 que ofrecía servicios financieros tanto convencionales como islámicos. La legislación que acompañaba la formación del IIFC introducía medidas contra las actividades de blanqueo de dinero y trataba de armonizar las normas de Brunei con las normas internacionales vigentes al respecto, a fin de potenciar la transparencia y atraer empresas…”. • ¿Además de la Orden sobre blanqueo de dinero, Brunei ha adoptado otras medidas para

contrarrestar esta práctica? • ¿Cuáles son los contenidos fundamentales de la Orden sobre blanqueo de dinero? JAPAN The Government Report (WT/TPR/G/196) V. TRADE POLICY FRAMEWORK (2) SERVICES (Question 1: page 8, paragraph 23) (Secretariat Report: page 50, paragraph 50) Could Brunei explain the reason why Brunei Darussalam has not made liberalization commitments in the construction sector? (Question 2: page 8, paragraph 23) (1) In such sectors as (v) Financial (Insurance and Insurance related services) and (vi) Other Financial Services, please provide specific cases where Brunei Darussalam has made commitments in its EPAs/FTAs which is more liberal than its offer made by Brunei under the DDA services negotiations. (2) If it is the case, please explain these commitments precisely. The Secretariat Report (WT/TPR/S/196) III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs procedures

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(Question 3: page 34, paragraph 9-10) Japanese companies operating in Brunei Darussalam have reported to the Japanese Government that as Brunei Darussalam does not have any bonded areas, companies will be required to pay additional fees per night unless concerned companies do not pick up their imported goods within three days after notification of arrival at ports. (1) In light of facilitation of customs procedures, please indicate whether the Government of Brunei Darussalam plans to establish bonded areas and bonded warehouses. According to the Secretariat report, the Government of Brunei Darussalam promotes the e-government initiative aiming to provide an infrastructure using IT as a platform for paperless transactions. (2) Please indicate its expectations to introduce an electric system into Customs procedures in Brunei. (iii) Applied tariffs (Question 4: page 38, paragraph 21) Japan understands that new legislations became effective on January 1st 2008, in order to eliminate the customs tariffs of automotive products, tobacco and alcohol beverages, while at the same time, imposing commodity taxes at the same rate as the customs tariffs to these goods. Japan is of the view that automotive products are one of the major import goods and regulations introduced which are mentioned above may have a significant impact on the trade policy of Brunei Darussalam. In light of transparency, please provide detailed information on this regulation, as well as an explanation of the criteria and background of this regulation. (4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Legal framework for business (Question 5: page 54, paragraph 71, 73) According to the Secretariat report, at least half the directors of a company incorporated in Brunei must be either nationals of Brunei or ordinarily resident in Brunei under the Companies Act (Cap 39). (1) Does the Government of Brunei think this regulation is still necessary? (2) Please explain the rationale of this regulation. (vii) Intellectual property rights (Question 6: page 64-65, paragraph 118) Japanese companies operating in Brunei have reported to the Japanese Government that they are suffering from an extremely large number of pirated goods in such products as maintenance equipment. According to the secretariat report, the Government of Brunei Darussalam makes efforts to strengthen enforcement for protecting intellectual property rights.

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Please explain specific measures taken by the Government of Brunei Darussalam against pirated goods. INDIA 1. The Para 17 of the Brunei’s Report states that in 2006, its economy improved, as it grew by 5.1% compared to 2.7% in 2001. GDP growth was largely due to positive developments in the hydrocarbon, financial and private services sectors. The growth rate for the next five years is expected to be within the range of 2 to 4%. We request Brunei to share detailed composition of the GDP growth and %age contribution of each sector to the GDP.

2. According to Para 38 of Brunei’s report, Semaun Holdings has a policy to divest of a company once the company is profitable and the Government has recovered its initial investment. Since commencing operations, Semaun Holdings has steadily been building up its portfolio of joint ventures and linked companies. However to date it has not divested any companies due to the failure of these companies to meet the criteria for divestment. Further, Para 14. of the Secretariat report mentions that relatively limited information is available on Semaun's contribution to GDP or its annual accounts, underlining a certain lack of transparency and public accountability in government policies. We request the delegation of Brunei to provide detailed information on if the investments of Semaun Holdings have not been profitable to divest, then what specific step with precise timelines the government proposes to take to make them profitable?

3. Para 51 of Brunei’s report acknowledges that ready made garments constitute the third biggest export after crude oil and liquefied natural gas. Recently, the textiles and clothing sector industry has seen a decline. The number of companies in operation in this industry has fallen from 25 companies to merely 11. We would appreciate Brunei sharing with us its plans to strengthen this industry to compete on a global scale. 4. Para 1 of Secretariat reports that Brunei owes its prosperity mainly to its abundant petroleum (oil and natural gas) resources, whose share of GDP grew from 53% in 2002 to 69% in 2006, and whose share of exports rose from 88% to 96% during the same period. Nonetheless, between 2002 and 2006, the economy grew at a rather modest annual average real rate of 2.5%, which is insufficient to generate enough jobs for Brunei's growing labour force. As a result, official estimates put unemployment at some 4% in 2006, a cause for concern among Bruneians. What are the steps that the government is planning to take to address the issues in a comprehensive manner to reduce dependence on oil, diversify its economy, enhance its HRD skills to provide jobs to the growing population? 5. The Secretariat report also in Para 3 mentions that Corporate taxes and royalties paid by oil and natural gas companies now account for some 94% of all government revenue, up from 86% at the start of the review period in 2002. We would appreciate if Brunei could kindly clarify as to nature of the increase; to what extent was it due to the rise in oil revenue taxes and decline, if any, in non-oil related revenue taxes? 6. Para 5 of Secretariat reports that Brunei's institutional framework is characterized by a lack of transparency with respect to trade and trade-related policies, to the detriment of government accountability. We would appreciate if Brunei could please provide rationale for non-transparency and if it proposes to impart greater transparency and by when? 7. Para 8 of the Secretariat report informs that in seeking to promote private sector development in non-oil and gas industries, Brunei overhauled its investment laws, and established the Brunei Economic Development Board (BEDB) in 2001 to promote Brunei as an investment destination. Has

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any evaluation of the work carried out since establishment of BEDB been conducted for an overall assessment of its performance and if so the results and steps taken to make it more effective? 8. Foreign investment, including up to 100% foreign equity investment, is permitted in all sectors except those involving local natural resources (notably agriculture and fisheries) and those relating to national food security, for which minimum local participation of 30% is required. Does Brunei envisages liberalising these sectors to attract FDI and with what timelines?

9. Para 3 of the Secretariat report states that Brunei has bound nearly 93% of its tariff lines at the WTO; while the average applied tariff rate is low, the average bound rate is 25.8%, leaving a large gap between the applied and bound MFN rates. What steps does Brunei proposes to take to bridge this gap to bring about certainty for traders and other economic agents. 10. Para 13 of Secretariat reports that Brunei is not a signatory to the WTO Government Procurement Agreement. Further Para 56 mentions that Brunei the Bruneian authorities state that further study is needed before the Government can make a decision. There is no specific legislation pertaining to competition policy. We would appreciate if Brunei could indicate as to by when the study would be initiated and completed and does Brunei plans to join the GPA as an observer. We would appreciate detail of plans of Brunei on introducing a Competition policy. 11. Para 4 of the Secretariat reports that through successive development plans, the Government has sought to diversify Brunei's economy and create sustainable employment in the non-oil private sector and Brunei's economy has become even more heavily dependent on the oil and gas sector. We would appreciate to be informed of the constraints faced by Brunei in meeting its planned development goals? 12. Para 20 of the Secretariat report comments that the small domestic market, a poorly developed local private sector, high wage costs, a shortage of skilled labour, slow bureaucratic procedures and a lack of transparency, and the ban on foreigners owning land have all deterred foreign capital and technology from non-oil and gas industries in Brunei. What are the Brunei’s plans to address each of the foregoing issues to seek a balanced and sustainable economic and social growth? 13. Further, Para 42 of the Secretariat report states that a key, internal, long-term risk continues to be the slow pace of the Government's diversification programme. Implementation of the privatization plan, which has been ongoing for a decade or more, appears to have been slowed by concern about the effect of privatization on government revenue and prices. How does government propose to resolve this situation? 14. Currently, Halal meat and poultry can be imported only from Malaysia and Australia. Brunei imports live cattle from its state-owned cattle farm located in Northern Australia for slaughter at local abattoirs ( Para 46 of Secretariat report refers). We would appreciate if Brunei could kindly explain the rationale of this restrictive import sourcing policy and by when it proposes to open it to other interested exporting members? 15. On Page 68 the Secretariat reports that Farming has become a part-time business for most rural families, owing to the availability of more lucrative forms of employment. However, in the subsequent section it reports that the Government policy is to reduce Brunei's dependence on food imports and to attain greater self-sufficiency in agriculture. We would be pleased to be informed of steps the Government proposes to take to make the farming lucrative employment and in seeking self-sufficiency in this sector.

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ADDITIONAL QUESTIONS BY INDIA 1. According to Paragraph 11 of the Report by Brunei Darussalam it is a member of the Brunei Indonesia Malaysia Philippines – East Asian Growth Area (BIMP-EAGA), which seeks to progress economic growth and development in the ASEAN sub region. BIMP-EAGA was formed in 1994, and aims to increase economic cooperation, trade, investment and tourism among participating economies in the sub-region. BIMP-EAGA currently has four priority areas of cooperation: transport, infrastructure and ICT development; natural resource development; joint tourism development and SME development. The designated lead country in the transport area is Brunei, which oversees a number of working groups dealing with air linkages; sea linkages; construction and construction materials and ICT. BIMP-EAGA is also pioneering environmental initiatives to address global concerns on climate change with the Heart of Borneo and Coral Triangle initiatives. The trilateral of BIMP-EAGA countries involved with the Heart of Borneo initiative have made arrangements to ensure that the designated areas are protected. Could the Govt. of Brunei kindly enumerate the steps taken by it in the field of transport and climate change? 2. Paragraph 16 of the Report by Brunei says that the Government continues to place great importance on economic diversification and encourages foreign investment into the country. Could the Government of Brunei mention its approach towards fulfilling the above-stated objective? 3. As per the Table given in Paragraph 19 of the Report by the Government of Brunei, the ad valorem rates for 2,181 tariff lines are 20%. Could the Government of Brunei mention any measures taken to further reduce them? 4. According to Paragraph 24 of the Report by Brunei Darussalam, it does not maintain any WTO inconsistent trade-related investment measures. A local equity requirement of not less than 30% applies to joint ventures in agriculture, fisheries and food processing, only if government facilities such as government-developed industrial sites are applied for.

Could the Government of Brunei explain the local equity requirement of not less than 30%? 5. Paragraph 27 of the Report by Brunei Darussalam says that the Brunei Economic Development Board (BEDB) Act was revised in 2003 and is now called the Brunei Economic Development Board Act (Chapter 104). The Act strengthens the BEDB's powers for the promotion of foreign direct investment, development of joint ventures in strategic sectors and the provision of efficient services to investors. The Act was further amended with the Brunei Economic Development Board Act (Amendment) Order 2003, which includes a new provision on auditing and BEDB is now a corporate body with perpetual succession and a common seal of power, subject to the provisions of the Brunei Economic Development Board Act, to acquire and dispose of property, both moveable and immoveable, may sue and be sued in its corporate name and perform such other acts as corporate bodies may by law perform.

Could the Government of Brunei state the new provision with respect to auditing?

6. According to Paragraph 30 of the Report by Brunei, the Registries Division administers the following Intellectual Property Rights litigation: Trade Marks Act (Cap 98), Trade Marks Rules, 2000, Inventions Act (Cap 72), Copyright Order 1999, Industrial Designs Order 1999, Industrial Designs Rules 2000 and Layout Designs Order 1999.

Could the Government of Brunei throw some light on the provisions relating to Geographical Indications (GI’s) and Compulsory Licensing?

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7. Paragraph 35 of the Report by Brunei Darussalam says that the National Standards and Accreditation Centre (NSAC) was formed in 2006 as a division under the Ministry of Industry and Primary Resources. It has the task of assisting companies producing local products to comply with international standards in order to be able to penetrate the export market. The services currently provided by NSAC include assistance in obtaining international certification (e.g. HACCP, GMP); standard and quality product training; quality and promotion development; and consultation services. The establishment of a Calibration Laboratory, which will be traceable to the International System of Units as maintained by the Bureau International des Poids et Measures (International Bureau of Weights and Measures) is currently in progress and NSAC is also proposing to establish a National Metrology Laboratory under the 9th National Development Plan. NSAC is working together with various other ministries in moving towards centralising standards in Brunei Darussalam. Could the Government of Brunei throw some light on the progress made so far in centralizing standards in its country? 8. Paragraph 36 of the Report by Brunei Darussalam states that National standards are currently available in the construction and halal food sector. It is the policy of Technical Committees for the development of standards to adopt international standards where relevant and there is an ongoing exercise to review the alignment of national standards with existing relevant international standards in line with ISO/IEC Guide 21:1999. Brunei Darussalam is also a member of the following organisations responsible for the international standards for various sectors: International Organisation for Standards (ISO), International Electrotechnical Commission (IEC), International Telecommunication Union (ITU) and Codex Alimentarius (food standards).

Could the Government of Brunei state whether it is a member of International Office of Epizootics (animal safety) and the various organizations and processes that operate under the International Plant Protection Convention (plant safety)?

Further, which are the notifying authority and the enquiry point for standards?

9. According to Paragraph 49 of the Report by the Government of Brunei, the Forestry Department under the Ministry of Industry and Primary Resources, aims to support the national economic diversification policy through the development of the forestry sector and the creation and facilitation of viable business opportunities while preserving biological forest resources for the well-being of the nation in accordance with international and sustainable forest management obligations. Under the National Forestry Policy, not less than 55% of the total land area of Brunei Darussalam will be demarcated and set aside to constitute the National Forest Estate.

Could the Government of Brunei explain the viable business opportunities it is planning in the forestry sector?

10. Paragraph 50 of the Report by Brunei says that in February 2007 together with the Governments of Indonesia and Malaysia, Brunei Darussalam signed up to the Heart of Borneo Initiative, which is a voluntary trans-boundary cooperation initiative to ensure the effective management of forest resources and conservation of a network of protected areas, productive forests and other sustainable land uses for the benefit of present and future generations. It is hoped that opportunities based on non-timber forest product industries such as bio product industries (e.g. pharmaceutical, herbal and cosmetic industries) could be opened up. Eco and nature tourism is another potential sector to be further developed based on Brunei Darussalam's wealth of forest bio-diversity.

Could the Government of Brunei shed some light on the opportunities to be generated in the fields of non-timber forest product industries, eco and nature tourism?

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11. Paragraph 56 of the Report by Brunei states the formation of a national money-laundering committee to help prevent money-laundering and financial crime activities.

Could the Government of Brunei explicate the success of this initiative?

12. Paragraph 59 of the Report by Brunei says that prior to 2005, the only mobile service provider available in Brunei Darussalam was DST Communications Sdn Bhd (DSTCom). DSTCom was established in April 1995 as part of a Government drive to privatize key segments of the telecommunication services sector. In 2005, a second mobile service provider was awarded a license, with the aim of increasing competition in the mobile segment and thus, stimulating the market for mobile services. B-Mobile Communications Sdn. Bhd. (B-Mobile) is a joint venture company between TelBru and QAF Comserve. DSTCom delivers its services on a GSM platform, while B-Mobile delivers its services over a 3G (W-CDMA) platform.

Could the Government of Brunei give details of policy regarding Foreign Direct Investment (FDI) in the Telecommunications sector? Moreover, what are the limitations as well as FDI cap with respect to this sector?

13. According to paragraph 61 of the Report by Brunei, the development of ICT in Brunei Darussalam falls under the purview of the Ministry of Communications. Specific to ICT Sector, the key objective of the Ministry of Communications is to uphold the vision of Brunei Darussalam on Information Society, which is to create a people-centered, intelligent, socially-responsible, inclusive and development-oriented Information Society where everyone can create, access, utilize and share information and knowledge.

What is the position regarding Foreign Direct Investment (FDI) in the ICT sector?

14. Paragraph 65 of the Report by Brunei Darussalam says that it maintains a liberal air services policy. In order to attract more foreign airlines to operate into Brunei, a reciprocal open skies air services policy has been adopted. As part of this effort, Brunei Darussalam has bilateral open skies agreements with New Zealand, Singapore, the United States and United Arab Emirates. The agreements allow designated airlines to provide air services between the two countries with the rights to pick up passengers at intermediate stops or at points beyond the two countries with no limitation on frequency, capacity and aircraft type

Could the Government enumerate its policy regarding cargo flights as well as chopper services?

15. According to Paragraph 77 of the Report by Brunei, the Government is also still interested in attracting investment to develop the oil and gas sectors, albeit in the downstream industries, and in the manufacturing industry in sites such as the Sungai Liang and Pulau Muara Besar. Both of these undertakings are considered to require foreign investors and expertise, and thus attract FDIs into the country.

Are there any plans of opening the upstream sector for Foreign Direct Investment (FDI)? What steps have been taken to attract investments in the manufacturing sector?

REPORT BY THE SECRETARIAT

16. Paragraph 4 of the Report By The Secretariat under Summary Observations says that a number of changes and revisions, partly relating to WTO provisions, have been made to national laws with respect to intellectual property rights, customs and excise as well as to recent regional and bilateral agreements and investment, including foreign direct investment.

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Could the Government of Brunei kindly mention the changes and revisions made to national laws in order to bring it in conformity with the WTO provisions and the various regional and bilateral agreements etc.?

17. Paragraph 7 of the Report By The Secretariat under Summary Observations says that in 2007, Brunei and Japan signed the Brunei-Japan Economic Partnership Agreement to facilitate the free flow of goods, services, and investments as well as enhance cooperation in energy, human resource development and science and technology.

Could the Government of Brunei throw some light on its EPA with Japan?

18. According to paragraph 10 of the Report By The Secretariat under Summary Observations, almost 99% of tariffs are subject to ad valorem rates, while 131 carry specific rates of duty, which apply mainly to matches, cigarettes, coffee, tea, and petroleum oils and lubricants. As they tend to conceal relatively high ad valorem equivalents, estimates of which were not available, it is likely the inclusion of these specific duties in the calculation of the average applied MFN tariff rate would raise Brunei's overall level of tariff protection. Brunei has bound nearly 93% of its tariff lines at the WTO; while the average applied tariff rate is low, the average bound rate is 25.8%, leaving a large gap between the applied and bound MFN rates. This gap can bring about uncertainty for traders and other economic agents as it provides scope for the authorities to raise applied tariffs within the higher rates. However, Brunei has not made use of this scope during the period under review.

Could the Government give a more detailed list of the items which carry specific rates of duty?

Moreover, the tendency of these rates to conceal relatively high ad valorem equivalents is a matter of grave concern with respect to market access. Please elucidate.

19. Paragraph 12 of the Report By The Secretariat under Summary Observations says that although Brunei's tariff barriers are relatively low, a number of import prohibitions, restrictions, and licensing requirements on various products for health, security, and moral reasons have remained generally unchanged during the review period. In addition, a few products (e.g. rice, sugar) are still subject to export restrictions, mainly to attain security of domestic supplies. Currently, there are no mandatory standards (technical regulations) in Brunei, only 42 voluntary standards that relate to construction and one in the food sector. There is no national body for setting standards in Brunei; the Construction Planning and Research Unit, based in the Ministry of Development, is the coordinator for standards and conformity assessment activities

Kindly explain?

20. According to Paragraph 13 of the Report By The Secretariat under Summary Observations, as the Government is the largest operator in the economy, its policies on procurement and competition also have an impact on trade. Government procurement remains an important instrument of economic policy, and government construction activities, in particular, play a major part not only in the construction industry, but in the economy as a whole. Brunei is not a signatory to the WTO Government Procurement Agreement. There is no specific legislation pertaining to competition policy, although Brunei is exploring the possibility of introducing such legislation in line with APEC principles; also, steps have been taken to increase competition through deregulation and corporatization in certain sectors, such as telecommunications. Brunei does not have its own tradeable stock exchange, and as such there is no specialized corporate governance code or takeover code.

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Would the Government explain its laws, regulation and policies regarding Government Procurement, Corporate Governance Code and takeover Code.

21. Paragraph 15 of the Report By The Secretariat under Summary Observations says that Brunei has strengthened its legal framework for the protection of intellectual property rights (IPRs) and is considering accession to the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty, which address copyrighted works in a digital environment. However, it still needs to implement its Patent Order (that dates from 1999) to provide patent protection for, inter alia, pharmaceutical and agricultural products and processes. Brunei does not have a strong track record in IPR enforcement, partly due to a lack of institutional capacity, and could therefore benefit from targeted technical assistance in this area.

Could the Government of Brunei explain the current status with respect to the Patent Order and IPR enforcement?

22. As per Paragraph 16 of the Report By The Secretariat under Summary Observations, through successive development plans, the Government has sought to diversify Brunei's economy and create sustainable employment in the non-oil private sector. The 8th Plan emphasized the need to move the economy away from oil and gas as the primary source of economic activity (and revenue) through the expansion of agriculture and industry and the development of certain services with the potential to achieve growth, namely: business services; financial services; hospitality and tourism; and transport and logistics. However, Brunei's economy has become even more heavily dependent on the oil and gas sector. The non-oil and gas manufacturing sector remains weak and underdeveloped and has shrunk from 3% to 1% of GDP since 2002, indicating that Brunei's diversification policy has met with little overall success.

Could the Government of Brunei kindly state the reasons behind the failure of its diversification policy?

23. Paragraph 17 of the Report By The Secretariat under Summary Observations says that in several key sectors of the economy, such as oil and gas, telecommunications, transport and energy generation and distribution, there continues to be a strong government presence, often in the form of state-owned monopolies, which can act unencumbered by any competition law. The resulting lack of competition may have adversely affected prices and the cost of doing business in Brunei, although relevant data were not available. The very small size of the domestic market discourages local and foreign participation in the economy and hampers the ability of non-oil and gas industries to achieve economies of scale, and thus to compete against imports as well as in export markets. The only other major source of export revenue has been the garment industry, which was established to take advantage of the international quota system under the ATC (Agreement on Textiles and Clothing), but following the ATC's expiry at the beginning of January 2005, exports have seriously declined.

Could the Government of Brunei comment on the presence of state-owned monopolies?

24. Paragraph 27 of the Report by the Secretariat under Summary Observations states that there is a lack of transparency in government policies and the manner in which they are administered. Foreign investment policies, while encouraging investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is restricted, thereby providing scope for discretion in government decision-making. As the IMF has pointed out, the financial and statistical database in Brunei is considered weak with regard to coverage, quality, timeliness, and frequency. Lack of reliable and timely data on, inter alia, investment income, balance of payments, monetary statistics, the labour market, and the national accounts, as well as scant or non-existent information about the progress made under the latest national development plan, highlight the general lack of transparency, and thus public accountability, in the management of the economy.

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Could the Government of Brunei please elucidate on the above-mentioned points?

25. According to Paragraph 9 of the Report By The Secretariat under Economic Environment, despite encouragement and a recent freeze in government salaries, it has been difficult for the private sector to compete for labour. The Government remains the most attractive employer in Brunei; the annual salary is supplemented by various allowances and benefits including rent subsidy, low interest housing and car loans, and an allowance for the haj pilgrimage. This is the case in particular for small and medium-sized enterprises (SMEs), which are encouraged by the Government through various tax and non-tax incentives. Could the Government of Brunei explain as to why is the private sector not able to attract employment? 26. Paragraph 27 of the Report By The Secretariat under the heading Economic Environment says that the overall balance of payments has recorded only small surpluses, of US$24 million to 46 million since 2002; and a deficit of US$11 million was recorded in 2005, owing, it appears, to huge unexplained negative items in the errors and omissions category. Could the Government of Brunei explain its position on the overall balance of payments? 27. As stated in Paragraph 36 of the Report by the Secretariat under Economic Environment, the Balance-of-payments data indicate that the net services deficit has been substantial since 2001, when it was US$580 million and declining to US$466 million in 2006. Could the Government of Brunei indicate the reasons behind it? 28. As mentioned in Paragraph 12 of the Report By The Secretariat under Part II relating to Trade Policy Regime: Framework And Objectives, the authorities maintain that the structure of the judiciary has remained unchanged since 2002 and has no substantial effect on trade-related and other economic policy formulation. No trade dispute has ever been brought to the domestic courts. The State of Brunei Darussalam cannot be brought before domestic courts on cases relating to WTO Agreements. Could the Government of Brunei the reasons behind not changing the structure of the Judiciary since 2002 which as it is mentioned in the report has no substantial effect on trade-related and other economic policy formulation? Further, is the Government taking any steps so that trade-related disputes can be enforced in the municipal courts?

29. As mentioned in Paragraph 22 of the Report By The Secretariat under Part III relating to Trade Policies And Practices By Measure, although the overall average applied MFN tariff is low, escalation is particularly pronounced in wood and furniture, fabricated metal products and machinery and chemicals, providing relatively higher effective protection to these industries. In the case of wood and furniture, the tariff on unprocessed and semi-processed products is considerably higher than for finished products; this de-escalation provides higher protection for producers of raw material and semi-processed goods in Brunei.

Could the Government of Brunei explain the existence of pronounced tariff escalation and the presence of inverted tariffs with respect to certain commodities?

30. As stated in Paragraph 32 of the Report By The Secretariat under Part III relating to Trade Policies And Practices By Measure, Brunei continues to maintain non-tariff measures (NTMs) in the form of various import limitations, which are deemed necessary to protect health, safety, security, the environment, and religion or to discharge Brunei's obligations under international agreements. In

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general, the NTMs are in the form of prohibitions, restrictions, and licensing, and they do not appear to have declined significantly since 2001.

Could the Government state the reasons behind its inability to reduce/eliminate the Non-Tariff Barriers (NTB’s) since 2001?

31. As stated in Paragraph 82 of the Report By The Secretariat under Part III relating to Trade Policies And Practices By Measure, subsidies appear to be provided for agricultural inputs and for water, energy, and telecommunications services.

Could the Government of Brunei enlist the kinds of subsidies given in the above-mentioned sectors?

32. Paragraph 83 of the Report By The Secretariat under Part III relating to Trade Policies And Practices By Measure, it is stated that under the Price Control Act (chapter 142), administered by the Economic Planning and Development Department in the Prime Minister's Office, maximum prices for selected goods may be fixed by the Price Controller, for consumer protection purposes. The goods are within the category of basic necessities: motor vehicles, infant milk powder, and cigarettes. The Act covers several aspects of market activity, such as control of movement, export/import of specified goods, refusal to sell goods, prohibition against selling greater quantities of a controlled article than required for "ordinary use", hoarding, and display of prices on goods.

Does the Government of Brunei have any plan to make the law relating to Price Control more flexible?

33. As per Paragraph 5 of the Report By The Secretariat under Part IV relating to Trade Policies By Sector, the private sector remains highly dependent on immigrant labour, primarily from the ASEAN countries, but also from India, Bangladesh, and Pakistan. According to the Government, there were 74,046 foreign workers (temporary residents) in the private sector in Brunei in 2005 (although this figure did not cover maids, drivers, and private gardeners, who are thought to number around 22,000). In 2004, foreign workers accounted for over 80% of the workforce in manufacturing and construction, and between 60% and 70% in personal services, retailing, hotels and restaurants, and agriculture.

Could the Government of Brunei through some light on its heavy dependence on immigrant labour and also the facilities provided to them?

34. Paragraph 15 of the Report By The Secretariat under Part IV relating to Trade Policies By Sector, says that although there are few tariff restrictions, some agricultural products, i.e. rice, sugar, and salt, are subject to import restrictions.

Could the Government of Brunei state the kind of import restrictions applied to the agricultural products mentioned above?

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CHINESE TAIPEI REPORT BY BRUNEI DARUSSALAM (WT/TPR/G/196) V. TRADE POLICY FRAMEWORK (3) INVESTMENT (Page 9, paragraph 27)

As indicated in the Report, the 2003 revised and amended Brunei Economic Development Board (BEDB) Act strengthens the BEDB's powers for the promotion of foreign direct investment, development of joint ventures in strategic sectors and the provision of efficient services to investors. Subject to the provisions of the Act, the BEDB is now also a corporate body with perpetual succession and a common seal of power.

Please could Brunei elaborate further on the status of the BEDB: (i) Is it an agency of the Brunei government? (ii) What is the nature and validity of BEDB’s related measures, including agreements entered

into with foreign investors? Should these be viewed as measures of the Brunei government? (4) INTELLECTUAL PROPERTY RIGHTS (Page 10, paragraph 31)

The Report states that Brunei’s enforcement of intellectual property rights is based on complaints lodged by the registered owner.

Since Brunei has acceded to the Berne Convention for the Protection of Literary and Artistic Works, which asks for no formal conditions to possess a copyright, does the above imply that copyright holders are excluded from any remedy for infringements if they are not on the Brunei government’s registry? (6) GOVERNMENT LINKED COMPANIES (Page 11, paragraph 37) We note that Semaun Holdings was established as a domestic investment and trading arm of the government, and has been placed under the jurisdiction of the Ministry of Industry and Primary Resources. Its mission appears to be to develop Brunei’s strategic industries. (i) We understand that there is a successful joint venture in aquaculture between Semaun

Holdings and one of our investors. Could we please have information about other successful joint ventures with foreign investors?

(ii) We are also interested in learning about Semaun Holdings’ key investment plans, both short-

and long-term. (iii) Please could Brunei also inform us of the limits on foreign equity holdings in such joint

ventures?

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V. SECTORAL POLICIES AND DEVELOPMENT (7) TELECOMMUNICATIONS (Page 15, paragraph 59) As indicated in the Report, DST Communications Sdn Bhd (DSTCom), was established in 1995 using the GSM platform, and B-Mobile Communications Sdn. Bhd (B-Mobile) was established in 2005 using the 3G (W-CDMA) platform. These two companies are the only providers using the GSM or W-CDMA platforms. (the GSM platform is mainly used for voice services; 3G is mainly for mobile data services) (i) Will the Authority for Info-Communication Technology Industry (AITI)be issuing more new

licences for GSM and 3G respectively to bring in more competition? (ii) Is there any plan for issuing Wireless Broadband Access services (e.g. WiMAX)? If so, will

the WBA licence be available to foreign investors? REPORT BY THE WTO SECRETARIAT (WT/TPR/S/196) I. ECONOMIC ENVIRONMENT (2) RECENT ECONOMIC DEVELOPMENTS (iv) Structural policies: diversification of the economy (Page 11, paragraph 29) Despite Brunei being blessed with considerable natural oil and gas resources, the government, being prudent and long-sighted, has launched several initiatives to place the economy on a path to sustainable growth. In order to persuade our manufacturers to consider Brunei as an ideal place to invest for the purposes of expanding the sale of their products to the Middle East market, could Brunei’s please provide details of incentives offered to foreign investors, e.g. in the acquisition of land, and in relation to labour policies and financial incentives. (Page 11, paragraph 31) We note from the Report that, despite some privatization in several key sectors of the economy, for example oil and gas, there continues to be a strong government presence in the economy. The government is the largest employer in Brunei and has large shareholdings in key oil and gas companies. It would be appreciated if Brunei could please explain how the government lessens or deals with situations in the oil and gas sector where competition may be hindered by the presence of state-owned monopolies? (5) OUTLOOK (Page 17, paragraph 43) We also find it difficult to obtain timely trade and economic data from Brunei, though updated statistical data plays an important role in the investors’ decision-making process.

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Does the Brunei government have any plans to improve the efficiency of its provision of economic and trade data? Given today’s global use of the Internet as a primary source of information, does Brunei have plans to include more economic statistical data on its official website in the future? II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (4) FOREIGN INVESTMENT REGIME (Page 29, paragraph 43) As indicated in the Report, foreign investment is open except in restricted sectors in which the Government is the major provider of services, such as the mass media, telecommunications, posts, energy and utilities. (i) The Brunei government has opened many industries to foreign investment, but not the

telecommunications industry. In line with the trend toward telecoms deregulation, is the Brunei government preparing to open this sector to foreign investment?

(ii) Is Brunei able to describe to us at this stage what are likely to be the conditions, the timeline,

and the ceilings to such foreign investment? (Page 31, Box II.2)

As indicated in Box II.2, “… investors enter into a Cooperation Agreement with the BEDB. In signing the agreement, the BEDB helps the investor in securing incentives, utilities, and infrastructure. The investor commits to agreed quantifiable and qualitative undertakings on a best endeavours basis in such areas as employment, transfer of technology, local participation, promotion of local SMEs, spin-offs, and community development.” Please could Brunei elaborate further on whether, should BEDB default on the agreement, responsibility for non-performance could be attributed to the Brunei government and the relevant dispute resolution process provided by the Brunei government? III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (vii) Import prohibitions, restrictions, and licensing (a) Import prohibitions (Page 44, paragraph 33) As indicated in the Report, the Government of Brunei maintains import prohibitions on a limited number of products, including opium, indecent and obscene printed matter, firecrackers, and vaccines from us. (i) Would Brunei please provide further details of the regulations on the import of vaccines to

Brunei and the main reasons why it prohibits the import of our vaccines in particular? (ii) Furthermore, if we fulfil all the requirements on vaccine imports, will the Government of

Brunei consider removing this ban?

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(3) MEASURES DIRECTLY AFFECTING EXPORTS (ii) Export prohibitions, restrictions, and licensing (Page 53, paragraph 64) As indicated in the Report, consumer prices for rice and sugar are subject to ceilings, and export restrictions appear to be intended to ensure adequate domestic supply. (i) We should be grateful for more details on how the Brunei government sets the price ceilings

for rice and sugar. (ii) Will Brunei consider liberalizing the rice or sugar market in the future? (4) MEASURES AFFECTING PRODUCTION AND TRADE (v) The public sector and private investment (b) Corporatization and privatization (Page 59, paragraph 95) In April 2006, the Government announced the corporatization of the Telecommunications Department. JTB's functions were split between two successor organizations, TelBru, responsible for delivering telecom services, and AiTi, responsible for regulating the local ICT industry. In addition, the government partially privatized certain services, such as Internet access and mobile telephony in 2006. (i) In line with the trend toward telecom deregulation, is the Brunei government preparing to

open the telecom sector to foreign investmen, and, if so, what are likely to be the conditions, the timeline, and the ceilings to such foreign investment?

(ii) Does the Brunei government have other practical privatization goals in areas other than

telecommunication services, and, if so, will there be any limitations placed on foreign investors during the privatization process?

(vii) Intellectual property rights (d) Copyright and related rights (Page 63, paragraph 113)

As indicated in the Report, Brunei grants copyright to published works for a period of 25 years from the year of the first publication. We would appreciate clarification from Brunei as to whether this means that “all types” of published works are granted copyright for such a term. If so, we wonder how the term of 25 years can be consistent with Article 7 of the Berne Convention (incorporated into TRIPS) and Article 12 of the TRIPS Agreement, both of which provide for several types of works to have copyright protection for 50 years from the year of their authorized publication or production?

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IV. TRADE POLICIES BY SECTOR (3) OIL AND GAS SECTOR (ii) Oil and gas industry (a) Petroleum refining and other downstream industries. (Page 75, paragraph 33)

The Report indicates that the government of Brunei is keen to encourage investment in upstream and downstream investment activities. It would be appreciated if Brunei could please elaborate further on the following: (i) How does the government promote such investments? Are there any incentives or rewards for

foreign investors in this sector, and, if so, what are they? (ii) Please provide us with details of the procedures and contact information regarding

applications for investment in the oil and gas sector. (iii) Could we please be informed of any plans to modify the application procedure to make it a

more transparent mechanism, such as the introduction of open tenders for upstream exploration?

(Page 75, paragraph 35) As indicated in the Report, Petroleum Brunei has chosen to award private companies the exploration rights for the blocks it controls. Could Brunei please provide us with details of Petroleum Brunei’s concrete conditions or reviewing criteria used in the process of issuing or approving exploration rights to foreign investors? BRAZIL WT/TPR/G/196 paragraphs 75 and 77 1) According to the Government Report, “the Government continues to place a great emphasis on the need for greater participation by the economic sector to contribute towards the diversification of the economy”. It also affirms that “the Government is also still interested in attracting investment to develop the oil and gas sectors”. How the development of new policies to attract investments in the oil and gas sectors can be reconciled with the Government’s plans to diversify Brunei’s economy? WT/TPR/S/196 paragraph 27 2) The Secretariat Report observes that “the lack of reliable and timely data (…), as well as scant or non-existent information about the progress made under latest national development plan, highlight the general lack of transparency, and thus public accountability, in the management of the economy”. What has the Government been doing to tackle such a lack of transparency and public accountability?

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WT/TPR/S/196 Chapter II (3) (ii)(d) paragraphs 37 and 38 3) The Secretariat Report mentions the Trans-Pacific Strategic Economic Partnership Agreement (Trans-Pacific SEP), between Brunei, Chile, New Zealand and Singapore. What is the assessment of the country’s authorities on the impact of such an Agreement?

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FOLLOW-UP QUESTIONS SECOND DAY OF THE MEETING THE EUROPEAN COMMUNITIES WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28 Also the Executive Directors IMF Article IV urged Brunei Darussalam that the credibility for Government institutions would increase by publishing audited accounts. Does Brunei Darussalam share this view, and in this respect, what efforts are undertaken to increase transparency of Government institutions? WTO Secretariat’s Report, page 11, para. 31 Could Brunei Darussalam kindly elaborate on the mentioned competition policy and which sectors would be included? What is the reason for not introducing an overall competition law? WTO Secretariat’s Report, page xiii, para. 27 Referring also to answer to question 1 b) from Canada, could Brunei Darussalam please explain what the rationale behind not having a clear and transparent list of sectors in which foreign companies can or cannot invest? In order to increase predictability for investors, is there any plan to introduce such a list? How often are the sectoral policies related to foreign participation revised? WTO Secretariat’s Report, page 29, para. 44 Could Brunei Darussalam please elaborate on how the concerns of prohibition for foreign nationals to own land will be addressed through the Strata Title Act? WTO Secretariat’s Report, page 33, para. 2 Is Brunei Darussalam seeking to lower its bound tariff rates in order to reduce the uncertainties for traders created by differences in bound and applied tariff rates? WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36 According to Chapter 2.3.13 of the OIE Code, trade with cattle, meat and meat products can be undertaken from countries, zones or compartments with negligible, controlled or undetermined BSE risk under certain conditions related to e.g. slaughter procedures and age of the cattle (with the exception of goods mentioned in Chapters 2.3.13.13-14). Can Brunei Darussalam confirm that the applied import conditions follow these guidelines? WTO Secretariat’s Report, page 43, para. 30 Could Brunei Darussalam please state to which types of goods the criteria for excise apply and if they are depicted in a regulation along with the applied excise rates? WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16 Could Brunei Darussalam please explain if there is any plan to sign mutual recognition agreements with organisations responsible for halal certifications in other countries, such as within the EU, in order to avoid lengthy inspection procedures requiring on-site visits by Bruneian authorities?

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WTO Secretariat’s Report, page 58, para. 91 According to the report, Semaun Holdings and its subsidiaries "appears to dominate domestic manufacturing". Does Brunei Darussalam share this view? Does Brunei Darussalam see a risk that private investment is discouraged in sectors where state-owned enterprises have a strong presence? WTO Secretariat’s Report, page 62, para. 107 Could Brunei Darussalam please explain whether this mindfulness of confidentiality requirements implies that it is regulated? WTO Secretariat’s Report, page 78, para. 49 What other conditions may be imposed upon award of an operating license for tour operators?

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REPLIES PROVIDED BY BRUNEI DARUSSALAM CANADA REPORT BY THE GOVERNMENT (WT/TPR/G/196) No questions. REPORT BY THE SECRETARIAT (WT/TPR/S/196) Summary Observations; (5) Outlook; Page xiii, Paragraph 27: The Secretariat Report notes that "Foreign investment policies, while encouraging investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is restricted".

1. (a) What actions will the Government of Brunei take to improve the transparency of the foreign investment regime both in the near and long term? (b) Will the Government of Brunei issue a specific list of restricted sectors for foreign investment, including information on any limits on foreign equity holdings?

Answer: (a) Brunei Darussalam continues to address the issue by developing measures and practices, and one example is the Government has published the “Brunei Darussalam Long Term Development Plan” which outlines the National Vision of the Country (Wawasan 2035), the Outlines Strategies and Policies for Development, as well as the National Development Plan 2007 – 2012. Under the National Development Plan 2007-2012, the Government aims to establish a national committee to increase transparency and reduce bureaucracy and red tape. In 2007, Brunei joined the World Bank survey on the Ease of Doing Business. This helps to identify areas in which changes need to be made. Actions Brunei Darussalam has taken to improve transparency include the publication of the business and investment guide and other related information on business and investment in hardcopy and through the electronic media, such as www.mipr.gov.bn and www.bedb.com.bn. All statistics are available on the website of the Department of Economic Planning and Development, www.depd.gov.bn. (b) Brunei Darussalam does not have a list. However, under the ASEAN Investment Area Bold Measures Agreement signed in January 1999, Brunei Darussalam allows for 100% foreign equity ownership in high-technology manufacturing and export oriented industries. Other than that, full foreign ownership is not permitted in sectors involving local natural resources (notably fisheries and agriculture) and those relating to national food security where a minimum of 30% local participation is required.

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I. Economic Environment; (5) Outlook; Page 17, Paragraph 43: The Secretariat Report notes a “lack of transparency in government policies and the manner in which they are administered”, and a weak financial and statistical database with regards to “coverage, quality, timeliness and frequency”.

2. Is anything being done to improve the system in order to have a better and more effective way of data collection and timely dissemination of information?

Answer: The Department of Statistics at the Department Economic Planning and Development (DEPD) is the central agency for national statistics in Brunei Darussalam. The Department also collects and disseminates data on a quarterly basis. This is to ensure that data and information collected are available in a timely manner. The Department has also undertaken initiatives to upload such national data online on the DEPD website (www.depd.gov.bn) for convenience in dissemination to the public as well as publications of quarterly reports such as Brunei Economic Bulletin (BEB). To improve the quality of data collection and dissemination, the Department of Statistics plans to develop short and long term strategic plans in line with ASEAN Secretariat and UN recommendations and to enhance capacity building. In this regard, Brunei Darussalam would appreciate any technical assistance offered by WTO members. III. Trade policies and Practices by Measure; (2) Measures directly affecting imports; (iv) Tariff bindings; Page 41, Paragraph, 28; The Secretariat Report states that “Brunei did not sign the WTO Agreement on Information Technology products”.

3. Could Brunei give further details on whether or not there are there any specific reasons for not signing the WTO Agreement on Information Technology products?

Answer: Brunei Darussalam would like to highlight that it has one of the lowest average MFN applied rates amongst developing countries and these lines include products under coverage in the WTO ITA. Our MFN applied rates on these said-products are extremely low – some of which are accorded duty-free concessions. As such, we are already well on the way to meeting the objectives of the ITA i.e. eventual tariff elimination. On the issue of accession, the merits of this plurilateral agreement has always been considered, of which the eventual decision is dependent on the needs and conditions arising from Brunei’s national developmental objectives.

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III. Trade Policies and Practices by Measures; (2) Measures Directly Affecting Imports; (viii) Standards and sanitary and phytosanitary measures; Pages 46-50: Canada notes that Brunei Darussalam has submitted two WTO SPS notifications, the last one in March, 2004.

4. Since then, has Brunei Darussalam changed or adopted any new SPS measures that affect international trade that were not notified to the WTO?

Answer: No, measures comply with International Standard for Phytosanitary Measures (ISPM) Guidelines and OIE standards and procedures. III. Trade Policies and practices by Measure; (2) Measures directly affecting Imports; (ix) Government procurement; Page 52, Paragraph 59: The Secretariat Report states that “[t]ender notices are published in the Pelita Brunei at least two weeks before the closing date of a tender”. Canada notes that government tenders are often open for less than a month and this is a challenge for foreign companies interested in participating given the short timeframe for preparing the document and proposal.

5. What is the process and what are the criteria involved prior to the public announcement of a government tender?

Answer: Prior to public announcement, the process within the department concerned will include: preparation of a necessary documentations, including draft agreement, tender specifications. Brunei Darussalam would also like to clarify that tender notices do not only appear in Pelita Brunei, but are also published in other leading newspapers, as well as some websites.

6. Does Brunei have any plans to streamline the procurement process? Answer: Yes, by introduction of an e-procurement system. III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (a) Overview; Page 60, Paragraph 97: According to the Secretariat Report for Brunei Darussalam, “Brunei has not joined the Paris Convention for the Protection of Industrial Property”.

7. Canada would appreciate Brunei’s views on whether it is considering joining this Convention.

Answer: Brunei Darussalam is currently considering the feasibility of joining the Paris Convention and hopes to accede to the Convention in the near future.

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III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (a) Overview; Page 60, Paragraph 98 & (b) Trademarks; Page 61, Paragraph 103: Canada notes that according to the Secretariat Report for Brunei Darussalam, “[the Criminal Justice Division of the Attorney General's Chambers] does not have a public awareness programme as it lacks capacity in implementing such a programme….The IP Section would benefit from appropriate technical assistance in this area as public awareness on IP in the country is considered generally low”. The Secretariat further notes that, “[f]oreign [trade mark] applications account for 99% of all applications received”.

8. Canada would be grateful if Brunei could advise whether it is considering requesting technical assistance from WIPO or the WTO to enable it to promote public awareness on IP.

Answer: Brunei Darussalam would certainly avail itself of the technical assistance from WIPO and/or WTO in raising awareness on IP in the country. However, as highlighted in the WTO Secretariat Report, the IP Division’s current set-up (only 4 officers dealing with IP, 2 being full-time trademark examiners) somehow makes it challenging for the Division to take up a more pro-active role in promoting IP awareness. III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Paragraph 105: According to the Secretariat Report, “Brunei provides protection for geographical indications under the Trade Marks Act (chapter 98)”.

9. Canada would be grateful if Brunei could elaborate on the protection granted to geographical indications and, in particular, which types of products can receive such protection.

Answer: The protection of geographical indications (GIs) is subsumed under the Trade Marks Act (Cap 98) and is protected as certification marks. Section 52 of the Act provides a general definition of a certification mark as “a mark indicating that the goods or services in connection with which it is used are certified by the proprietor of that mark in respect of origin, material, mode of manufacture of goods or performance of services, quality, accuracy and other characteristics.” Rule 56(1) of the Trade Marks Rules of 2000 provides that an application for the registration of a certification mark must be filed on Form TM32 together with the prescribed fee. Within 9 months from the filing date, the applicant must file the regulations governing the use of the mark on Form TM23 (Rule 56(2)). III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Paragraph 107 & (f) Trade Secrets; Page 64, Paragraph 117: Canada notes that according to the Secretariat Report for Brunei Darussalam, “the Patents Order 1999 was expected to be implemented in 2001 to replace the Inventions Act, 1984” but according to the authorities, “it has yet to be implemented”. Similarly, the Secretariat Report states that “[t]he

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Ministry of Health is in the process of drafting legislation that will regulate the disclosure of information on medical products and cosmetics”.

10. Canada would appreciate if Brunei could provide an update on when these laws and regulations are expected to come into force.

Answer: Brunei Darussalam has just received comments on its Draft Patent Regulations from WIPO. The IP Division is currently taking the necessary steps to finalise the Regulations with a view to implementing both the Draft Patent Order and Regulations in the near future. III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 63, Paragraph 111: Canada notes that according to the Secretariat Report, “[t]he exclusive rights to the invention can only cease if the Sultan declares in a public statement […] that the exclusive right, or the way in which it is exercised, is detrimental to Brunei Darussalam or prejudicial to the public”.

11. Canada would appreciate if Brunei could provide details from examples of when patent rights have been deemed to be detrimental in this way.

Answer: There has not been an occasion where an invention has been declared detrimental to Brunei Darussalam or prejudicial to the public in any way. III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (d) Copyright and related rights; Page 63, Paragraph 113: The Secretariat Report for Brunei Darussalam states that, “[the Copyright Order 1999] provides copyright protection for the creator's life plus 50 years for works…Copyright for published works is granted for 25 years from the year of the first publication.”

12. Canada would appreciate if Brunei could confirm the term of protection granted to published and unpublished works.

Answer: Term of Protection for Published Work

Typographical arrangement of a published edition expires at the end of the period of 25 years from the end of the year in which the edition was first published: §17 of the Copyright Order.

First publication for typographical arrangement of published editions occurs when copies were first issued to the public: §178(1)(a) of the Copyright Order

Term of Protection for Unpublished Work

Any copyright in anonymous or pseudonymous literary, dramatic, musical or artistic works, other than photographs, continues to subsist if the work has not been published, until the end of the period of fifty years form the end of the year of commencement or, if during that period the work was first commencement or, if during that period the work was first made available

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to the public within the meaning of subsection (2) of section 14, the date on which the copyright expires in accordance therewith: Para 11 (3)(b) of Schedule 1 of the Copyright Order.

If the work is of unknown authorship, copyright will expire at the end of the period of fifty years from the date on which the work was either made, first made available to the public or first published, whichever date is the latest, provided that where the author’s identity is revealed or is no longer in doubt before the expiration of that period, the provisions of subsection (1) of section 14 apply: §14(2) of the Copyright Order.

III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (g) Enforcement and penalties; Page 65, Paragraph 121: According to the Secretariat Report regarding trade mark and copyright cases, “[d]elays are attributed due to the unavailability of the complainant rights holder and necessary documents”.

13. Canada would be grateful if Brunei could provide: (a) its views on why complainant rights holders are sometimes unavailable; and (b) more information on the necessary documents.

Answer: (a) Complainant right holders are unavailable due to the following reasons:

i. Problems with right holders whose location is geographically far from Brunei. ii. Small market which discourages local presence of right holders.

iii. It was observed that even right holders from neighbouring countries have difficulties in attending meetings or court dates that have been set.

iv. A number of complainants cannot produce original documents to prove their purported rights even when given a long period of time.

(b) The necessary documents meant are mainly those which prove that they are the rights holders or the exclusive licensees for Brunei and also to show assignment of such rights where applicable IV. Trade Policies by Sector; (5) Services; (ii) Telecommunications; Page 85, Paragraph 71: The Secretariat notes that there are currently three telecommunications infrastructure providers which are locally owned and controlled, and, according to the authorities, there is currently no significant foreign participation.

14. Could Brunei Darussalam please clarify the extent of any foreign participation in these providers?

Answer: The maximum extent of foreign participation allowed is 50%. If foreign providers wish to participate in the Brunei market, they may do so by acquiring equity in existing providers in the course of normal commercial negotiations. IV. Trade Policies by Sector; (5) Services; (ii) Telecommunications; Page 86, Paragraph 73: The Secretariat notes that although the licensing framework published by AiTi mandates a certain level of local loop unbundling (LLU), the lack of de facto LLU and competition in fixed-line telephony is one of AiTi's key issues.

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15. Could Brunei Darussalam provide further information on the actions taken by AiTi to address these issues?

Answer: AITI is working with the relevant parties to migrate licensees to the new InTi/SeTi licenses. Once this is complete, applying the rules contained in the Interconnection Handbook and enforcing the rules of accounting separation contained in the InTi/SeTi licenses will bring about de facto LLU and competition. The Secretariat notes that AiTi issues two types of licenses, the second of which, SeTi, applies to telecommunications resale.

16. Could Brunei Darussalam provide further information on the number of SeTi licenses issued to date, as well as the number of resale providers presently operating in Brunei Darussalam?

Answer: There are no SeTi licenses issued to date. Our current operators are still operating under their old licenses issued by the Ministry of Communications. The new licensing framework is intended to work as a tiered system. Service providers who both own infrastructure and operate it are expected to be licensed with an InTi license and a SeTi license. While service providers who only resell telecommunications services are expected to be licensed with a SeTi license only. We are currently in the process of migrating existing licensees to the new InTi/SeTi licenses and licensing a number of new SeTi providers – some 50 or so in total. IV. Trade Policy by Sector; (2) Agriculture, Forestry, and Fishing; (i) Agriculture; Page 70, Paragraph 16: The Secretariat Report states that the “Imports of all meat and poultry products are subjects to Halal requirements and may only be sourced from government-approved abattoirs”.

17. Could Brunei Darussalam give further details on its Halal requirements/certification for imports of all meat and poultry products?

Answer: Brunei Darussalam would like to clarify that only meat and poultry products aimed for the Halal market are subject to the Halal requirements. These requirements are regulated under the Halal Meat Act and the Halal Certificate and Halal Label Order 2005. Both these legislative instruments are available from the Brunei Darussalam Printing Office.

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THE EUROPEAN COMMUNITIES I. ECONOMIC ENVIRONMENT (1) INTRODUCTION

WTO Secretariat’s Report, page 1, para. 1 & page 6, para. 7 According to paragraph 1, "The Government provides a wide range of free or heavily subsidized public services and employs 25% of the labour force". According to paragraph 7, “It is estimated that over 90% of the Bruneian labour force are employed by the public sector, including state-owned enterprises” [emphasis added].

69. Could Brunei Darussalam please clarify? Answer: With reference to paragraph 1, the ‘labour force’ refers to the total labour force which includes the local and foreign workers, meanwhile, the ‘Bruneian labour force’ in paragraph 7 refers only to Brunei citizens and permanent residents. WTO Secretariat’s Report, page 1, para. 1 According to the WTO Secretariat’s Report, “Some of its policies, practices, and measures, including those pertaining to trade and foreign investment, are rather opaque”.

70. How does Brunei Darussalam seek to increase transparency in this area? Answer: Brunei Darussalam continues to address the issue by developing measures and practices, and one example is the Government has published the “Brunei Darussalam Long Term Development Plan” which outlines the National Vision of the Country (Wawasan 2035), the Outlines Strategies and Policies for Development, as well as the National Development Plan 2007 – 2012. In 2007, Brunei joined the World Bank survey on the Ease of Doing Business. This helps to identify areas in which changes need to be made. Actions we have taken to improve transparency include the publication of the business and investment guide and other related information on business and investment in several websites including www.mipr.gov.bn and www.bedb.com.bn. All statistics are available on the website of the Department of Economic Planning and Development at www.depd.gov.bn. Brunei Darussalam has also published Investment Guides to further facilitate FDI into the country. The Brunei Economic Development Board (BEDB) which plays a role in developing and promoting Brunei as an investment destination is a major focal point for potential investors to get information and assistance. Please also refer to the answer to Question 1 from Canada.

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WTO Secretariat’s Report, page 1, para. 2 & page 72, para. 26 According to paragraph 2, “The country continues to owe its economic prosperity overwhelmingly to its abundant petroleum and natural gas resources […]”. However, paragraph 72 states: “According to two reports, Brunei’s oil reserves have to last 25 years or only another 10 years, at current rates of extraction. Brunei’s gas reserves […] are expected to last another 40 years”.

71. Could Brunei Darussalam please indicate how it seeks to maintain its current level of prosperity in the future?

WTO Secretariat’s Report, page 2, para. 3 & page 16, para. 42 According to paragraph 2, “Since 2000, when the Government issued a landmark report acknowledging the country’s lack of a sufficiently diversified economic base, a series of plans to reduce unemployment, attract foreign investment, and restructure the economy away from over-dependence on limited petroleum reserves have largely failed to achieve the desired changes”. According to paragraph 16, “A key, internal, long-term risk continues to be the slow pace of the Government’s diversification programme”.

72. Could Brunei Darussalam please elaborate on how it seeks to enhance the effectiveness of its diversification programmes?

Answer: In response to Questions 3 and 4, Brunei Darussalam acknowledges the importance of diversifying the economy away from the crude oil and natural gas sectors. Brunei Darussalam has identified 5 economic clusters that can potentially be developed; 1) Tourism and Hospitality, 2) Halal Food, 3) Transport and Logistics, 4) Business and Financial Services and 5) Info-Communication Technology (ICT). In addition to that, Brunei Darussalam also realize the benefit it can get from further exploiting its comparative advantage in the energy sector. In that context, Brunei Darussalam has begun undertaking to develop downstream activities in the oil and natural gas sectors. The development of the Sungai Liang Industrial Park (SPARK) as an authority and a one stop centre to facilitate establishment and operations of FDI in the park indicates one major move by Brunei towards widening its economic base for future generations. Under SPARK, the construction of the USD350 million methanol plant is currently underway and will start production by 2010. The methanol derivatives are also expected to provide more business and employment opportunities to the local SMEs. The multi-billion deep water Pulau Muara Besar (PMB) port project is also expected to generate similar opportunities. In the new Long-Term Development Plan, several policy directions and programmes that will be implemented under the Economic, Institutional Development, Local Business Development, as well as Infrastructure Development strategies will help to further widen the economic base. (2) RECENT ECONOMIC DEVELOPMENTS (i) Macroeconomic performance (b) Employment

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WTO Secretariat’s report, page 6, para. 7&8 According to paragraph 7, the “Bruneization” policy encourages companies to give preference to Bruneians in their employment policies. However, paragraph 8 states that there is a “need for foreign workers”, particularly in the financial sector.

73. Could Brunei please indicate how it seeks to make its “Bruneization” policy fit with the need for foreign workers for its economy?

Answer: The “Bruneization” policy that the WTO Secretariat report notes is one practiced by private companies such as Brunei Shell Petroleum and Royal Brunei Airlines (as indicated in the report) and as such is not a Government policy, which may be a form of corporate responsibility. Brunei Darussalam in fact recognizes the necessity to bring in highly skilled foreign workers in areas such as the financial services as well as the petrochemical industry to facilitate the transfer of knowledge and expertise which will result in the increase of total labour productivity of the economy in the long-run. (c) Prices WTO Secretariat’s Report, page 6, para. 11 It is stated that “Inflation continues to be constrained by the imposition of price controls and subsidies on essential foods and petrol”.

74. Does Brunei Darussalam share the view of the WTO Secretariat’s Report? Answer: Several factors impact upon Brunei Darussalam’s inflation (as indicated in the CPI), this includes import price inflation. Brunei Darussalam has also been able to maintain its price stability and relatively low inflation due to the fact that its currency is on par with the Singapore dollar. (ii) Macroeconomic policies (a) Fiscal policy WTO Secretariat’s Report, page 8, para. 19 The aim of a “clean and healthy environment” is stated.

75. Could Brunei Darussalam please indicate how it seeks to reconcile economic growth, and particularly the increasing importance of the fishery sector for its economy, with the aim of sustainable development?

Answer: In Brunei Darussalam, the development of the Fisheries sector balances need against sustainability. For every area opened for aquaculture, an Environmental Impact Assessment is carried out to determine that economic growth is reconciled with sustainable development.

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The aim of reconciling economic growth and sustainable development has also been incorporated in the Long Term Development Plan which highlights what we intend to do in this area. As a further indication of Brunei Darussalam’s commitment to economic growth and sustainable development, the Government has established the Department of Environment, Parks and Recreation as main agency on issues related to the environment. Moves will include the following:

− Strengthening the legal and regulatory framework to protect the environment in line with international standards,

− Developing a comprehensive monitoring system for air and water quality, waste management, hazardous waste, etc

− Public awareness and education on safeguarding the environment Furthermore the Government is looking into other new methods of offshore fishing / aquaculture, such as deep sea fishing. The Government has imposed a moratorium on fishing in Zones 1 and 2, as the policy is now to encourage deep sea fishing in Zone 3. This is aimed at protecting coastal fish and the coral reef, where stocks have been depleted, whilst at the same time opening a new area for development. WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28 According to paragraph 20, “Information on the General Reserve Fund, administered by the autonomous Brunei Investment Agency is not available as the BIA presents its accounts only to the Sultan”. According to paragraph 10, “[…] the lack of available data on the Government’s investment income renders the level of transparency of the BIA rather low”.

76. Why are data on the BIA lacking?

77. Does Brunei Darussalam seek to increase the level of transparency with regards to BIA activities? If so, when?

Answer Based on Brunei Darussalam’s obligation to the IMF under Article VII, s. 5(vii) of IMF Articles of Agreement, its international investment position is furnished form time to time on a confidential basis.

Brunei Darussalam believes that data on the Brunei Investment Agency (the ‘BIA’) is not lacking to the extent indicated by the report. The BIA is not a public listed company, and as such it is not under any legal obligation to make their accounts known to the public. This also applies to the issue of transparency raised in the report.

The BIA is obligated to report to their Board of Directors which the Government believes it has done sufficiently satisfactory as there has been no complaint by the Board of Directors. (b) Monetary and exchange rate policies WTO Secretariat’s Report, page 10, para. 23 It is stated that “One possible disadvantage is that the resulting steady effective appreciation of the Brunei dollar may impede the Government’s efforts to diversify the economy and develop export industries”.

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78. Does Brunei Darussalam share the WTO Secretariat’s view?

Answer: Whilst Brunei Darussalam agrees that this may possibly be a disadvantage, it is only a disadvantage if the Government’s efforts to diversify the economy were concentrated on a labour-intensive industry, such as manufacturing. However, the Government is not focusing in such an industry, but rather is looking towards the value-added industries such as the services and downstream industries. (iv) Structural policies: diversification of the economy WTO Secretariat’s Report, page 11, para. 29 According to the WTO Secretariat’s Report, “[…] The strategy to achieve these goals was based on a broad corporatization/privatization effort, greater foreign investment, and a more competitive labour market”.

79. Could Brunei Darussalam please indicate whether it plans to further undertake liberalization efforts? If so, in which sectors?

Answer: The previous 8th National Development Plan saw the corporatization of Telecommunication Department as well as the newly established regulatory body Authority for Info-Communication Technology Industries (AiTi). Under the new plan, more government departments and services are being earmarked for corporatization and commercialization. The plan has also endorsed a Privatization Master Plan which will set guidelines and procedures to further liberalise the public sector and encourage public-private partnerships (PPP). WTO Secretariat’s Report, page 11, para. 31 It is stated that “[…] there continues to be a strong government presence in the economy, often in the form of state-owned monopolies, which can act unencumbered by any competition law”.

80. Could Brunei Darussalam please elaborate on its reasons for not having any competition law?

81. Does Brunei Darussalam seek to introduce competition law? Answer: Brunei Darussalam practices competition policy through economic regulations such as price regulations and licensing of entry into economic sectors, in addition to implementing competition policy on a sectoral basis. “The very small size of the domestic market seems to discourage local and foreign participation in the economy […]”.

82. Could Brunei Darussalam please indicate whether it intends to benefit from economies of scale by intensifying regional integration efforts?

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Answer: Yes. As part of ASEAN, Brunei Darussalam aims to be an integral part of the ASEAN Economic Community and is a continuous supporter for ASEAN integration, particularly as a proponent of FTAs including the region-to-region FTA between ASEAN and the EU. (3) DEVELOPMENTS IN TRADE (i) Composition of trade (a) Trade in goods WTO Secretariat’s report, page 12, para. 35 According to the WTO Secretariat’s Report, “Brunei imports almost everything, including most foodstuffs and beverages”.

83. Could Brunei Darussalam please explain if and how it wishes to meet the criterion of economic self-sufficiency?

Answer: Brunei Darussalam has not claimed to aim to achieve economic self-sufficiency, particularly as it cannot and does not rely on domestic production or import substitution, but rather recognizes and practices the need for a diverse base of imports. However, the Government does aim to achieve self-sufficiency in selected agricultural products, subject to the capacity to produce coupled with the availability of new technologies and innovations in farming practice. Current statistics revealed that Brunei achieved 100 percent self-sufficiency in egg production, while broiler recorded 94 percent sufficiency. (ii) Direction of trade WTO Secretariat’s Report, page 15, para. 38 According to the WTO Secretariat’s Report, “[…] the lowering of trade barriers within the ASEAN region through the ASEAN Free-Trade Agreement (AFTA) may have led to some trade diversion”.

84. Does Brunei Darussalam share the WTO Secretariat’s view? Answer: Since the inception of AFTA, Brunei has seen an increase in trade within ASEAN as well as outside ASEAN. (5) OUTLOOK WTO Secretariat’s Report, page 17, para. 43 According to the WTO Secretariat’s Report, “Lack of reliable and timely data on, inter alia, investment income, balance of payments, monetary statistics, the labour market, and the national accounts, as well as scant or non-existent information about progress under the latest National

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Development Plan appear to highlight the general lack of transparency, and thus public accountability, in the management of the economy”.

85. How does Brunei Darussalam seek to improve data and statistics in these areas? Answer: Please refer to Question 2 from Canada. II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (2) TRADE POLICY OBJECTIVES AND ADMINISTRATION (i) Objectives WTO Secretariat’s Report, page 20, para. 13 According to the WTO Secretariat’s Report, “The Brunei Economic Development Board (BEDB) was set up in November 2001 to stimulate growth, expansion, and development of the economy by promoting Brunei as an investment destination”. In the World Bank's Doing Business Report for 2008, Brunei scores 78 among 178 countries included in the report. Some of the biggest obstacles lie in starting up a business, where a company needs to go through 18 procedures taking 116 days to complete. According to the report, no reform progress has been made during the surveyed year.

86. Could Brunei Darussalam please elaborate on its reform plans in the short term in order to address these shortcomings in light of the Government’s goal of encouraging the establishment of more private companies in the non-oil and gas sector?

Answer: Past efforts are continued and new initiatives undertaken in encouraging a more dynamic private sector. More emphasis has also been given in streamlining government procedures and in the usage of ICT in ensuring that business can start off more efficiently. In accordance to the implementation of e-government projects, the Ministry of Industry and Primary Resources (MIPR) has launched the e-MIPR programme to deliver fast, accurate, efficient and business friendly online services for investors, entrepreneurs and businesses such as in submitting licenses or permit application . In the long term, it is envisioned that e-MIPR can be established as a single window in delivering services to the country’s business community. The Attorney General Chambers of Brunei (AGC) has also begun putting up online facilities for the registering of businesses (www.eregistry.agc.gov.bn) which is estimated to cut down processing time from 7 to 3 days. Brunei Darussalam’s involvement in the World Bank’s Doing Business Report surveys is also a clear indication of the Government’s efforts to overcome it’s shortcomings, as through the Report it is able to identify areas in which reform is needed. The Management Services Department (MSD) together with MIPR are currently in the process of discussing issues identified by the World Bank Ease of Doing Business report.

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(3) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Regional agreements (a) ASEAN Brunei Darussalam’s Report, page 6, para. 10 & WTO Secretariat’s Report, page. 24-26, para. 25-31 The EC takes note of the fact that no reference is made to the ongoing EU-ASEAN Free Trade Agreement negotiations which were launched on 4 May 2007 whereas Brunei’s report refers to them as “to begin in the near future”.

87. Does Brunei Darussalam consider updating this language by mentioning that negotiations were launched on 4 May 2007?

Answer: Brunei Darussalam wishes to clarify that the “negotiations” has began with the EU and was launched on 4 May 2007. (d) Trans-Pacific SEP Brunei Darussalam’s Report, page 7, para. 15 According to Brunei Darussalam’s Report, “The Trans-Pacific Strategic Economic Partnership Agreement also has side agreements, namely the Environment Cooperation Agreement and Labour Cooperation Memorandum of Understanding, to reflect a shared desire to encourage and promote sound labour and environment practices. These agreements establish mechanisms for ongoing cooperation and dialogue on labour and environment issues”

88. Could Brunei Darussalam please elaborate on the specific actions taken “to encourage and promote sound labour practices”?

89. In particular, what kinds of mechanisms for ongoing cooperation and dialogue on labour issues are being established?

Answer: The Labour Cooperation MOU in the TPSEP (P4) is based on cooperation and consultation among the parties. Brunei Darussalam is aligning its domestic policies to comply with the obligations under the International Labour Organisation (ILO). Consultations are also held at international meetings and other fora, such as the ASEAN Labour Ministers meeting and ILO. WTO Secretariat's Report, page 27, para. 37 The WTO Secretariat's Report refers to upcoming Trans-Pacific SEP negotiations.

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90. Could Brunei Darussalam please indicate if evolutions of the regulatory framework for financial services contemplated in light of the negotiations on financial services are taking place this year in the context of the Trans-Pacific Strategic Economic Partnership Agreement?

Answer: Negotiations in the area of Financial Services have yet to begin, and as such it is difficult to speculate as to the evolution of the regulatory framework for financial services in Brunei Darussalam. (iii) Bilateral agreements WTO Secretariat’s Report, page 29, para. 40 According to the WTO Secretariat’s Report, “In December 2002, Brunei and the United States signed a Trade and Investment Framework Agreement (TIFA) […] It also includes consultations on the elements of a possible free trade agreement”.

91. Could Brunei Darussalam please elaborate on the progress of consultations of such a possible free trade agreement?

Answer: Brunei Darussalam and the U.S. continue to hold consultations under the Brunei-US Trade and Investment Framework Agreement (TIFA) which is focused on trade facilitation and cooperation. (4) FOREIGN INVESTMENT REGIME WTO Secretariat’s Report, page xiii, para. 27 According to the WTO Secretariat’s Report, “Foreign investment policies, while encouraging investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is restricted, thereby providing scope for discretion in government decision-making”.

92. Could Brunei Darussalam please elaborate on its foreign investment policies, taking into account the above-mentioned assertion and explain how it reconciles discretion on foreign ownership caps with investors' need for predictability and legal certainty?

Answer: Please refer to the answer to Question 1(b) from Canada. (i) Legislative and institutional framework and investment procedures WTO Secretariat’s Report, page 29, para. 44 It is stated that “Foreign nationals are generally not permitted to own land […]”.

93. Could Brunei Darussalam please elaborate on the reasons for this prohibition?

94. Does Brunei Darussalam seek to change this policy?

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Answer: Brunei Darussalam is a small country and land is clearly limited. Nonetheless, under the BEDB Act local and foreign investors are allowed to own industrial land through leases of up to 30 years (renewable). The land can be used as collateral to finance projects. In addition, a Strata Title Act is being drafted to address such concerns. III. TRADE POLICIES AND PRACTICES BY MEASURE (1) OVERVIEW WTO Secretariat’s Report, page 33, para. 2 It is stated that the gap between the applied and bound tariff rates “can bring about uncertainty for traders and other economic agents as it provides scope for the authorities to raise applied tariffs”.

95. Does Brunei Darussalam share the WTO Secretariat’s assessment? Answer: Brunei is committed to having a liberal tariff policy. Since the Uruguay Round, Brunei has unilaterally reduced its applied MFN tariffs. WTO Secretariat’s Report, page 33, para. 5 & page 51, para. 56 Paragraph 5 states that “Government procurement remains an important instrument of economic policy, and government construction activities, in particular, play a major part not only in the construction industry, but in the economy as a whole. Brunei is not a signatory to the WTO Government Procurement Agreement”. Paragraph 56 states that “[…] the authorities state that further study is needed before the Government can make a decision”.

96. Given the fact that government procurement is an important policy instrument in Brunei Darussalam, does Brunei Darussalam consider joining the WTO Government Procurement Agreement?

97. Which further study is necessary before Brunei Darussalam can make a decision on joining the WTO Government Procurement Agreement?

Answer: At this moment Brunei Darussalam does not have any immediate plans to join the GPA either as a signatory or as an observer. Brunei Darussalam feels that it is first necessary to study how the GPA could benefit Brunei in line with our National Development policies. WTO Secretariat’s Report, page 34, para. 8 According to the WTO Secretariat’s Report, “Brunei does not appear to have a strong record in IPR enforcement”.

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98. Which steps is Brunei Darussalam undertaking in order to improve its IPR enforcement record?

Answer: All complaints that have been made on IP were acted on. However, cases which were not evidentially viable were not brought to Court. Brunei Darussalam continuously welcomes rights-holders to enforce their rights in Brunei Darussalam by lodging complaints against infringements and also by utilising the border-enforcement measures available. Brunei Darussalam also continuously maintains public awareness on IPR through seminars in various forms. As of 2006, the Attorney General has directed that enforcement agencies refer complaints or cases in relation to intellectual property to the Attorney General’s Chambers before raids are conducted to ensure compliance of the law and usability of the evidence. This has resulted in discussion of the relevant evidential requirement between the Criminal Justice Division, the Registries Division as well as enforcement agencies such as the Royal Brunei Police Force and the Customs Department as well as right holders and complainants, when available. (2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs procedures WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36 It is mentioned that Brunei maintains import restrictions on certain goods for health, sanitary and phytosanitary reasons as well as moral reasons, which for example includes import restrictions on live cattle and poultry.

99. Could Brunei Darussalam please confirm that these restrictions are fully in line with the SPS agreement, and as such, do not violate the OIE Terrestrial Animal Health Code 2007?

Answer: As a member of the OIE, Brunei Darussalam follows OIE standards and procedures. Brunei Darussalam bases restrictions on the relevant ISPM Guidelines. (iii) Applied tariff (a) Structure of the MFN tariff WTO Secretariat’s Report, page 38, para. 20 It is stated that “As information was not available on ad valorem equivalents for the specific rates, the 131 lines, which cover mainly cigarettes, alcoholic beverages, coffee, tea, petroleum oils, and lubricants, are not included in the tariff analysis in this report”.

100. Does Brunei Darussalam intend to make information available with regards to the 131 lines?

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Answer: These ad valorem conversions – both on agricultural and non-agricultural lines - were provided to the WTO Secretariat. “High rates of smuggling” are also mentioned.

101. Which steps is Brunei Darussalam undertaking in order to reduce these high rates of smuggling?

Answer: Brunei Darussalam remains vigilant in its efforts to counter smuggling activities. (iv) Tariff bindings WTO Secretariat’s Report, page 41, para. 28 According to the WTO Secretariat’s Report, “Brunei did not sign the WTO Agreement on Information Technology Products”.

102. Does Brunei Darussalam intend to sign the WTO Agreement on Information Technology Products?

Answer:

Please refer to the answer to Question 3 from Canada. (v) Other charges affecting imports WTO Secretariat’s Report, page 43, para. 30 The possibility for the Minister of Finance to impose and revoke excise taxes on any goods as deemed appropriate could create uncertainty for private companies.

103. Could Brunei Darussalam please elaborate on the criteria according to which goods could be subject to excise? If no such regulations/criteria are in place, could Brunei Darussalam please indicate if regulations are in the making?

Answer: Goods to be excised are generally considered on the basis of:

1. Revenue generation. 2. Social, health and environmental impact.

(viii) Standards and sanitary and phytosanitary measures

104. Could Brunei Darussalam please explain why authorities request a sanitary certificate for each European olive oil imported?

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Answer: Brunei Darussalam requires a sanitary certificate for all types of olive oil imported into the country, in accordance with local health and safety regulations. This is applied on a non-discriminatory basis, i.e. to all WTO members, not just to the EC. (b) Sanitary and phytosanitary measures WTO Secretariat's Report, page 49, para. 45 According to the WTO Secretariat's Report, "Following the outbreak of avian flu in several countries, the Brunei Government imposed an import ban on all types of poultry products from countries affected by, or suspected of having, avian flu outbreaks". With regard to Avian Influenza could Brunei please provide information on the following:

105. Could Brunei Darussalam ensure that it applies all OIE recommendations with regard to import restrictions for reasons of avian influenza (AI)?

106. If not, please could Brunei Darussalam please clarify and explain whether Brunei is

considering bringing its measures in line with OIE recommendations? Answer: Brunei Darussalam has been a member of the OIE since 2004, accordingly import restrictions for reasons of avian influenza are inline with the OIE recommendations. The OIE recommendations (Article 2.7.12.20) state that heat-treated meat (following a process which ensures destruction of AI virus) can be safely traded regardless of the AI status of the exporting country.

107. Could Brunei Darussalam ensure that import restrictions are not being applied to EU exports of heat-treated poultry products?

108. If so, could Brunei ensure that import restrictions are in accordance to the above-mentioned

OIE recommendations? Answer: Brunei Darussalam confirms that it can receive imports of poultry products that have undergone the process of heat-treatment according to the OIE. An exporting country can re-gain its AI free status after 90 days with no outbreaks, in accordance with the OIE Animal Health Code. The EC would also like to point out that, according to the OIE, countries with outbreaks of AI only in the wild bird population should not suffer any import restrictions on poultry products.

109. Is Brunei Darussalam following the above-mentioned approach, in accordance with international recommendations?

Answer: Yes.

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WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16 According to paragraph 46, "Under the Halal Meat Act, the Board for Issuing Halal Import Permits grants the permit if the slaughterhouse is already on a list approved by the Majlis Ugama Islam; for slaughterhouses not on the list, an inspection committee, including representatives from the Ministry of Religious Affairs, the Majlis, the Ministry of Health, and the Department of Agriculture is required to inspect and approve the abattoir. The Board forwards the application to the Majlis who makes the final decision on issuing the import permit". According to paragraph 16, "Imports of all meat and poultry products are subject to Halal requirements and may only be sourced from government-approved abattoirs". The EC has no intention to contest the legitimacy of the Halal Meat Act. However, the EC would like to highlight that the system of abattoir approval implies that a lengthy procedure of approval has to be performed for every single establishment wishing to export agricultural products to Brunei Darussalam including on the spot inspection visits carried out by Bruneian officials.

110. The EC would like to know if Brunei Darussalam considers amending the relevant legislation in order to allow for EU exports of agricultural products to benefit also from a similar system of pre-listing and so as to make it not more trade restrictive than necessary to fulfil its legitimate objective?

By way of example, the EC does not impose a lengthy approval system on countries wishing to export to the EU. Moreover, the EC practice is to allow third countries to authorise the establishment to export to the EC by themselves, once the country itself has been approved. This is the so-called prelisting system. Answer: There are no plans to do so at the moment. (ix) Government procurement (a) Overview WTO Secretariat’s Report, page 50, para. 53 It is stated that “Although foreign suppliers can participate in government tenders, most retain a local agent to represent them in Brunei, as corporate relationships with the Government are of great importance”.

111. Is the presence of a local agent compulsory for foreign suppliers or is it just advisable? Answer: The presence of a local agent is advisable, to look after a foreign company’s interest in Brunei Darussalam and for easy communication and transfer of knowledge and know how etc, but it is not compulsory. It is further stated that “Teamed with a good local agent with the appropriate connections and knowledge of local business practices, foreign suppliers have a better chance of winning contracts”.

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112. Which steps is Brunei Darussalam undertaking in order to increase the chances of foreign suppliers without local knowledge?

Answer: Brunei Darussalam encourages foreign suppliers to work together with a local agent in order to increase the suppliers’ accountability as well as to ensure efficient after sales services. Brunei Darussalam believes that local knowledge is important for a foreign supplier/company to establish itself in the country. WTO Secretariat’s Report, page 51, para. 54 According to the WTO Secretariat’s Report, “The notification timeframe from receiving tender recommendations to award of contracts is approximately a month”.

113. How much can this figure vary and under which conditions? Answer: Normally between 2 to 3 weeks. (b) Tendering procedures WTO Secretariat’s Report, page 52, para. 58 According to the WTO Secretariat’s Report, “No detailed data were available from the authorities concerning the breakdown of procurement contracts awarded and their values by tender method”.

114. Does Brunei Darussalam intend to make data on the breakdown of procurement contracts available? If so, when?

Answer: Brunei Darussalam is working on the project to introduce e-Procurement System to enhance the transparency of its Government Procurement regimes, information and Statistic Data. (x) Import-related operations of state enterprises WTO Secretariats Report, page 52, para. 61 & page 54, para. 70 According to paragraph 61, “Brunei has not notified any state-trading enterprises to the WTO”. According to paragraph 70, “No information was available to the Secretariat on exports by state enterprises”.

115. Could Brunei Darussalam please confirm that there are no state-trading enterprises?

116. If state-trading enterprises exist, could Brunei Darussalam please explain if and when it intends to notify them to the WTO?

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Answer: Brunei Darussalam understands that the Information Technology and State Store Department (ITSS) is not a state enterprise, as it does not fulfil the definition of a State Trading Enterprise under the WTO. The ITSS functions as a body to purchase and store rice and sugar for reasons of national food security. ITSS is not given special and exclusive rights to purchase such items. There are no restrictions on importation of rice and sugar as businesses are allowed to import rice and sugar with a permit. (4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Legal framework for businesses WTO Secretariat’s Report, page 54, para. 73 According to the WTO Secretariat’s Report, “At least half the directors of a company incorporated in Brunei must be either nationals of Brunei or ordinary resident in Brunei”.

117. Could Brunei Darussalam please elaborate on the rationale of this policy? Answers: This policy is reflected under section 138(2) of the Companies Act (Cap. 39). The rationale of the provision has always been to secure the presence of a local director who will be accountable and answerable for the company’s matters and liabilities. (iii) Incentives (b) Tax incentives WTO Secretariat’s Report, page 56, para. 81 According to the WTO Secretariat’s Report, “Brunei’s economic development might be better served by a more broadly-based corporate income tax system involving fewer incentives, but with a tax rate substantially lower than the 30% currently levied”.

118. Does Brunei Darussalam share the WTO Secretariat’s assessment? Answer: Yes. (v) The public sector and private investment (a) The public sector WTO Secretariat’s Report, page 58, para. 89 According to the WTO Secretariat’s Report, “Public sector monopolies also appear to exist in key infrastructure sectors, including electricity, and water” [emphasis added].

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119. Could Brunei Darussalam confirm if such public sector monopolies exist?

120. If so, does Brunei Darussalam intend to keep these monopolies? If so, why?

Answer: Traditionally electricity and water is provided by the government. However in the case of electricity, there is one private electrical power station providing electricity supply to Brunei Darussalam in addition to the government owned power stations. At present, water is still provided by the government to ensure that the basic needs of the people are provided for. Such public sector monopolies exist where the prohibitive cost of developing infrastructure represents a barrier to entry for new entrants. For example, it would be very costly for a second provider to implement a second fixed line infrastructure in Brunei. WTO Secretariat’s Report, page 58, para. 91 The Government through various efforts encourages expansion of the non-oil and gas sector and is said to aiming at reducing direct Government involvement in the economy. Nevertheless, Government enterprises are directly involved in several sectors of the economy, which could be run by private companies, including SMEs.

121. Could Brunei Darussalam please elaborate on the efforts it is pursuing in order to reduce the role of state-owned enterprises, in particular in commercially viable sectors?

122. How has the contribution of state-owned enterprises to the national economy evolved since

the introduction of the Eighth National Development Plan? Answer: At the moment, there is no plan to reduce the role of state-owned enterprises in the economy. State-owned enterprises were set up in order to stimulate business activities in commercially viable industries where the private sector is constrained by lack of access to technology and financial resources. Nevertheless Brunei Darussalam undertakes efforts to develop the private sector by:

Enhancing the business, management and technical skills of local businesspersons through various training programs offered by MIPR, MOE and the private sector, most of which are offered free of charge.

The Enterprise Facilitation Scheme provides lower than market rate interest loans for qualified entrepreneurs.

(vi) Competition policy WTO Secretariat's Report, page 60, para. 96 It is stated that, "According to Brunei's APEC Individual Action Plan, it has no specific legislation on competition policy but it is considering competition policies in line with APEC principles".

123. Could Brunei Darussalam please provide more information on the process and the timescale for the announced adoption of "competition policies in line with APEC principles"?

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Answer: As a member of APEC, Brunei Darussalam adheres to the APEC principles of competition policy, and as such there is no timeline to announce its adoption. (vii) Intellectual property rights (b) Trade marks WTO Secretariat’s Report, page 61, para. 102 According to the WTO Secretariat’s Report, “Under the Act, a foreign applicant must provide an address in Brunei Darussalam for all related correspondence from the Registrar”.

124. Could Brunei Darussalam please elaborate on the rationale of this policy?

Answer: An address for service is a requirement under the law which applies to foreign applicants only. This address for service (usually a law firm that acts as the agent for the applicant, if appointed) is the address to which all correspondences from the registrar are sent. This is to ensure that the service of documents are properly and efficiently effected. (c) Patents WTO Secretariat’s Report, page x, para. 15 According to the WTO Secretariat’s Report, Brunei Darussalam “still needs to implement its Patent Order (that dates from 1999) to provide patent protection for, inter alia, pharmaceutical and agricultural products and processes”.

125. Could Brunei Darussalam please elaborate on the measures it is implementing in order to protect the intellectual property rights especially in pharmaceutical and agricultural sectors?

Answer: The Patents Order 1999 has been published in the Government Gazzette but is yet to be fully implemented. These new laws on patents are TRIPS-compliant. Currently, there is no independent system for the registration of patents. WTO Secretariat’s Report, page 62, para. 107 It is stated that “Due to a lack of qualified persons and expertise substantive examination for patentability will be conducted abroad under a referral arrangement with foreign patent offices”.

126. Could Brunei Darussalam please elaborate on the role of these foreign patent offices?

127. How is confidentially ensured?

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Answer: The role of the foreign patent office is to carry out substantive searches on patentability as the new system that Brunei Darussalam is opting for is based on formality checks only. Currently, Brunei Darussalam has not finalized arrangements with any foreign patent offices. However, it is mindful of the ‘confidentiality’ requirement when dealing with applications for the registration of patents. (g) Enforcement and penalties WTO Secretariat’s Report, page 64, para. 118

128. Is Brunei Darussalam aiming at introducing legislation on disclosure of information on medical products and cosmetics? If so, when?

129. Could Brunei Darussalam confirm that such legislation will be fully aligned with the TRIPS

Agreement in this respect?

Answer: Disclosure of information on medicinal products and cosmetics will be regulated by the Medicines Order, 2007 which commenced on 1 January 2008 with respect to cosmetic products. [The Order provides for different commencement dates for medicinal products and cosmetic products]. Accordingly, medicinal products are required to be registered before marketing authorization can be granted whereby applications for registration require the disclosure of “documents, items, samples, particulars and other information as the Authority may require. Section 65(1) provides that any person who discloses to any other person (a) any information with respect to any manufacturing process or trade secret obtained by him in premises which he has entered by virtue of section 59; or (b) any information obtained by or furnished to him in pursuance of this Order, is unless the disclosure was made in the performance of his duty, guilty of an offence. IV. TRADE POLICIES BY SECTOR (4) NON-OIL AND GAS SECTOR (i) Production and trade WTO Secretariat’s Report, page 71, para. 23 According to the WTO Secretariat’s Report, “Brunei’s economy has followed the swings of the world oil market […]”.

130. Which steps is Brunei Darussalam undertaking in order to decrease its economic dependence on the swings of the world oil market?

Answer: In order to decrease Brunei Darussalam’s economic dependence on the swings of the world oil market, Brunei strives to achieve economic diversification, away from crude oil and natural gas. For further details, please refer to the answers to Questions 3 and 4.

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(ii) Oil and gas industry (a) Petroleum refining and other downstream activities WTO Secretariat’s Report, page 75, para. 33 According to the WTO Secretariat’s Report, “The Government is keen to encourage investment in downstream activities […]”.

131. Could Brunei Darussalam please elaborate on the nature of the liberalisation regime for foreign service providers willing to supply energy products distribution services?

132. In light of the importance of the oil and gas sector for Brunei's economy, what is the current liberalisation regime and what are the conditions ruling the provision of energy-related services by foreign service providers to those companies licensed to exploit the hydrocarbon resources?

133. Is Brunei Darussalam considering undertaking commitments and reflecting its actual level of liberalisation in energy-related services sectors, as suggested notably in the collective request on energy-related services?

Answer: Brunei Darussalam would like to request that the E.C. clarify / elaborate Questions 63 and 65. As to Question 64, the conditions for the provision of services are determined by the individual company licensed to exploit the hydrocarbon resources. Currently, highly specialised activities including seismic gathering activities, offshore drillings are provided by foreign service providers. (5) SERVICES (i) Overview WTO Secretariat’s Report, page 78, para. 49 According to the WTO Secretariat’s Report, “Recognizing the importance of services for economic growth, the Government aims to transform Brunei into a service hub for trade and tourism (SHuTT)”.

134. In light of plans to turn Brunei Darussalam into a services hub for trade and tourism, could Brunei Darussalam please elaborate on the conditions applying to foreign services suppliers interested in providing restaurant, hotel, travel agencies, and tour operator services in Brunei?

135. Could Brunei Darussalam please explain if consideration is given to further liberalisation of tourism and travel-related services, as well as of infrastructure sectors that play a crucial role in the development of an efficient tourism industry such as transport and construction services?

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Answer: Travel Agent Closed sector as there is a cap on licences issued to 45 companies (holders of

existing licenses) since 1985 (Ministry of Finance Directive) and in 1980, the Ministry of Finance issued a circular requiring all new applicants to be Brunei Darussalam nationals.

Tour Operators Currently no restrictions on this sector other than domestic presence requirements and conditions which maybe imposed upon award of an operating licence.

Tour Guides Currently no restrictions on this sector. Steps are currently being undertaken in order to regulate this sector.

NB: Details as to the other sectors will be provided at a later date One of the clusters designated by BEDB to promote our economic diversification programme is ‘hospitality and tourism’. It is an area which we shall consider positively for further liberalization in the near future. Brunei Darussalam believes in the gradual and eventual liberalization of the transport sector while striking a balance between protecting the consumers, the development of the local players and achieving strategic economic interest of the country towards providing a safe, easy, accessible and secure (SEAS) transport services in Brunei Darussalam. WTO Secretariat’s Report, page 78, para. 51 According to the WTO Secretariat’s Report, "The authorities have indicated that they intend to revise their offer at an appropriate time in the DDA negotiations".

136. Could Brunei Darussalam please inform us about the content of the new offer that the authorities indicated to revise in relation to future liberalisation?

Answer: DDA negotiations are not complete and as such Brunei Darussalam will respond when the outcome is clearer. AUSTRALIA II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 1. The Secretariat report notes that “(t)he institutional framework is characterized by a lack of transparency with respect to trade and trade-related policies, to the detriment of government accountability” (WT/TPR/S/196, page 18, paragraph 2). The Report by Brunei Darussalam does not appear to contain any statements that address this issue. What are Brunei Darussalam’s current policies and practices relating to the publication of trade measures and what steps is it taking to improve transparency in this area?

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Answer: To improve transparency, the Government recently published the new Brunei Darussalam Long-Term Development Plan which outlines the National Vision of the Country (Wawasan Brunei 2035), the Outline of Strategies and Policies for Development (OSPD), as well as the National Development Plan 2007 – 2012. One of the strategies, Institutional Development Strategy, addresses the issue of transparency and minimization of red tape by maintaining high standards of governance in the public and private sector. In the National Development Plan 2007-2012, one of its development thrusts, Strengthening the Institutional Capacity, also aims to address the same issue. In 2007 Brunei joined the World Bank survey on the Ease of Doing Business. This helps to identify areas in which changes need to be made. (3) TRADE AGREEMENTS AND ARRANGEMENTS (i) Multilateral agreements 2. Like all WTO Members, Brunei Darussalam is required to make regular notifications to the WTO in accordance with various WTO provisions (WT/TPR/S/196, page 24, paragraph 23 and page 104, Table AII.1). Brunei Darussalam has several regular WTO notifications outstanding, including notifications for agriculture domestic support and state trading enterprises. Could Brunei Darussalam advise when it will be able to provide WTO Members with these notifications? Answer: Brunei Darussalam has no state trading enterprises. In relation to the agriculture domestic support, Brunei Darussalam only gives assistance for purposes of maintaining food security, provision of infrastructural services, and research and training activities. (4) FOREIGN INVESTMENT REGIME 3. The Secretariat report notes that in relation to foreign investment, “only activities relating to national food security and those based on natural resources require local equity participation” (WT/TPR/S/196, page 29, paragraph 43). How does Brunei define the concept of “national food security” and the range of activities/products that are covered by that concept? Answer: Brunei Darussalam considers that the notion of national food security is to ensure availability, physical and economic accessibility of basic food supplies to all sections of the population. This basic notion of food security also encompasses for reasons for health and safety for the whole country. III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (iii) Applied tariff 4. Australia notes Brunei Darussalam’s relatively low average applied MFN tariff (WT/TPR/G/196, page 7, page 19). The Secretariat was, however, unable to include in its tariff analysis the specific tariff rates on 131 lines as information on ad valorem equivalents was not available (WT/TPR/S/196, page 38, paragraph 20). Could Brunei Darussalam provide ad valorem

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equivalents for the specific tariff rates applied to various products such as cigarettes, alcoholic beverages, coffee, tea, petroleum oils and lubricants? Answer: These ad valorem conversions – both on agricultural and non-agricultural lines - were provided to the WTO Secretariat. 5. What is Brunei Darussalam’s policy rationale for the maintenance of high tariffs on wood and wood products, and certain machinery and appliances, vehicles and vehicle parts and precision instruments and apparatus? Is Brunei taking any steps to review these policy settings and reduce those tariffs? Answer: Since the Uruguay Round, Brunei has committed to unilaterally reduce her applied MFN tariffs. To date, Brunei has one of the lowest average applied MFN tariffs among developing countries. (iv) Tariff bindings 6. What are Brunei Darussalam’s reasons for not having become a party to the WTO Information Technology Agreement? Does Brunei Darussalam apply tariffs to information technology products? Answer: Please refer to the answer to Question 3 from Canada. 7. Within the Doha Round non-agricultural market access (NAMA) negotiations, provision has been created for “small, vulnerable economies” not to apply the general tariff reduction formula modality to their bound tariffs. Members with less than 0.1% share of world trade may have access to this provision. Can Brunei Darussalam clarify as to whether it considers itself to be a small, vulnerable economy, or whether it would anticipate applying the same general tariff reduction formula modality as other developing countries? Answer: As a general policy direction, Brunei attaches great importance to promoting trade liberalization. Brunei therefore sees the benefits of applying tariff cuts based on her already liberal tariff policy regime – regardless of whether she considers herself as an SVE or otherwise. (ix) Government procurement 8. The Secretariat report (WT/TPR/S/196, page 51, paragraph 56) notes that Brunei is not a signatory to the WTO Government Procurement Agreement, and that “the authorities state that further study is needed before the Government can make a decision”. It is, however, noted that coverage under the Trans-Pacific Strategic Economic Partnership (SEP) Agreement is extensive and that Brunei Darussalam has been given two years (from July 2006) to negotiate its government procurement schedule. The Report by Brunei Darussalam notes that it is preparing its list for entities under the Government Procurement chapter (WT/TPR/G/196, page 7, paragraph 15). What progress has Brunei made in negotiating its government procurement schedule under the Trans-Pacific SEP Agreement? Could these commitments form a basis for broader liberalisation of its government procurement activities and accession to the WTO Government Procurement Agreement? If so, to what extent?

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Answer: On the Government Procurement schedule under the Trans-Pacific Strategic Economic Partnership Agreement, Brunei Darussalam is still in the process of negotiation and as such details can only be further elaborated upon completion of the negotiation (4) MEASURES AFFECTING PRODUCTION AND TRADE (vii) Intellectual property rights 9. Australia notes that enforcement of intellectual property (IP) rights is based on complaints lodged by the registered owner (WT/TPR/G/196, page 10, paragraph 31). What process does a right holder have to undertake to lodge a complaint and how is the complaint processed? Answer: Rights holders may lodge a complaint with the police and file in required documents proving they own the rights alleged to have been infringed. Due to evidential requirements on mens rea, prior notice of their rights would be important; such prior notice can be done by advertisements in the local newspaper or notice to vendors. 10. Under Brunei Darussalam’s current statutory regime, police powers of investigation of IP criminal offences are also dependant upon the receipt of a complaint by the right holder (WT/TPR/S/196, page 64, paragraph 118). Are there any circumstances where criminal investigations may be launched by the police without receiving a complaint? If so, please provide examples. Answer: The police have ex-officio powers to take action, however as limited number of rights holders are present in Brunei Darussalam, a complaint is the usual basis for action as it indicates that the particular rights holder will be present to provide technical assistance in identifying where infringements have occurred and appearing in court as the complainant during court proceedings. Where a rights holder gives adequate notice that their titles should only be obtained from their exclusive licencee in country X and no other, the police can then contemplate enforcement action against those ordering infringing copies without a specific complaint. However, the rights holder, representative or exclusive licencee who has authority to deal with infringement in Brunei Darussalam, will then be required to certify such infringing goods or articles and appear in court to give evidence that their rights have been infringed. 11. Australia notes that Brunei Darussalam’s Copyright Order is being amended (WT/TPR/S/196, page 64, paragraph 114). Are further details about the amendments available, and when are the amendments expected to enter into force? Answer: The amendments had been reviewed and discussed amongst relevant agencies and it was decided that further review was needed to be done on certain other areas. Further comparison work with legislations from other countries is also to be carried out. 12. Australia notes and welcomes Brunei Darussalam’s work regarding electronic filing of trade mark applications (WT/TPR/S/196, page 61, paragraph 104). Can Brunei Darussalam confirm that the project was completed by end 2007 as expected?

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Answer: The e-Registry project was completed at the end of 2007 as scheduled and the business processes of the Registry of Trade Marks are now fully automated. The trademark e-filing system will be introduced in phases and will be available to the public at a later stage. 13. Australia notes the reluctance of right holders to protect their own rights through border enforcement provisions under the relevant IP legislation (WT/TPR/G/196, page 10, paragraph 33). Why are right holders reluctant to rely on these measures? Answer: Although no specific reasons have been given by right holders, the reluctance may be due to right holders not wishing to incur liability in assuring appropriate security which may be imposed in indemnifying Customs as a result of detention of goods which are the subject of the rights holder’s notice. IV. TRADE POLICIES BY SECTOR (2) AGRICULTURE, FORESTRY, AND FISHING (i) Agriculture 14. Australia notes that as part of Brunei Darussalam’s diversification program (Eighth Plan), B$90.5 million was allocated to agriculture from 2001-05 to encourage development within that sector (WT/TPR/S/196, page 68, paragraph 9). How does Brunei Darussalam intend to notify the programs arising from this funding in its domestic support notification in accordance with Article 18.2 of the Agreement on Agriculture? Answer: According to the Eighth Plan, the budget allocated to agriculture was for the purposes of maintaining food security, provision of basic infrastructural services, and research and development activities and regulatory and market promotion. As part of Brunei Darussalam’s capacity building activities to ensure compliance with WTO rules on domestic support, a Consultant Study is currently being undertaken to research the incentive programmes administered by the Department of Agriculture. Brunei Darussalam will look into updating its outstanding notifications where appropriate. 15. The Secretariat’s report (WT/TPR/S/196, page 68-69, paragraph 11 and footnote 4) states that the government of Brunei Darussalam used various schemes, such as price support, to increase rice production. How does Brunei Darussalam’s end-product subsidy scheme for rice producers operate? Would Brunei Darussalam confirm that this support would form part of its Current Total Aggregate Measure of Support (AMS) calculation? Answer: The scheme is part of a National Development Plan programme to encourage domestic rice producers – and is based on providing a Guaranteed Price to the producers (through a Government Purchasing Scheme). Rice producers need to be registered with the Department of Agriculture to join the scheme, and should only grow local rice varieties recommended by the department for the

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domestic market. Rice grown under this scheme only provides 1-3% of Brunei Darussalam’s domestic rice consumption. As rice is a controlled commodity in Brunei Darussalam, the retail price is set by the Government. Brunei Darussalam is still at the stage of developing technical capacity in order to carry out AMS calculations. In this regard, Brunei Darussalam welcomes assistance from the WTO Secretariat and Member Countries in this field. (5) SERVICES 16. The Secretariat report notes that foreigners may be allowed to hold up to 100 per cent of the equity in certain industries and activities in which the Government wishes to encourage investment (WT/TPR/S/196, page 29, paragraph 44). The Secretariat report also identifies some of the industry sectors in which Brunei is seeking to encourage foreign investment: transport and logistics, business services, financial services, and hospitality and tourism (Box II.2 on page 31). To what extent does Brunei take into account the role that improved GATS commitments could play in advancing the objectives of the Economic Development Board’s economic diversification strategy? Answer: Brunei looks positively to making a revised offer based on her economic diversification strategy. 17. Australia notes Brunei's current GATS Mode 4 commitments regarding managers, executives and specialists but understands that current domestic regulation limits holders of relevant visas to a single entry. In Australia's view, multiple entry visas for short term service suppliers facilitate increased trade in services and investment. Is Brunei considering altering its current visa regulations to permit multiple entry by temporary entry visa holders? Answer: Brunei Darussalam will look into this possibility. 18. Australia is disappointed by Brunei's MFN exemption on legal services and its failure to make or offer any commitments on legal services. Is Brunei considering any legislative change that would enable it to make legal services commitments in future? Answer: Currently, there are still no plans for Brunei Darussalam in respect of making legal services commitments. Brunei reaffirms that any new commitments shall be conducted on the basis of reciprocity. As such, Brunei welcomes the interest of Australia on this issue.

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THE UNITED STATES WT/TPR/S/196 TRADE POLICY FRAMEWORK Transparency One theme of the Secretariat Report is the need for greater transparency in government policies and the manner in which they are administered (see, for instance, Summary Observations page viii). As examples, the Report mentions the availability of information about foreign investment policies; the coverage, quality, timeliness, and frequency of financial statistics; information about the National Development Plan and its progress; and the procurement and trading activities of state enterprises. • What steps is Brunei contemplating to improve the transparency of its policies and activities in

these areas? Answer: To improve transparency, the Government recently published the new Brunei Darussalam Long-Term Development Plan which outlines the National Vision of the Country (Wawasan Brunei 2035), the Outline of Strategies and Policies for Development (OSPD), as well as the National Development Plan 2007 – 2012. One of the strategies, Institutional Development Strategy, addresses the issue of transparency and minimization of red tape by maintaining high standards of governance in the public and private sector. In the National Development Plan 2007-2012, one of its development thrusts, Strengthening the Institutional Capacity, also aims to address the same issue. The progress of the past National Development Plans can be found in each of Brunei Darussalam’s National Development Plans including the latest publication. For the coverage, quality, timeliness and frequency of financial statistics, Brunei Darussalam is currently improving its data collection methods. Its participation in regional and international fora such as the ASEAN Working Group for Foreign Direct Investment Statistics (WGFDIS), International Labour Organisation (ILO), United Nation Economic and Social Commission for Asia and the Pacific (UNESCAP), United Nation Statistics Division (UNSD), helps Brunei Darussalam to continuously enhance its data collection dissemination and analysis. Please also refer to Question 2 from Canada. With respect to government procurement, Brunei Darussalam is working on introducing an e-Procurement System. With respect to foreign investment policies, please refer to the answers to Questions 1a and 1b from Canada. TRADE POLICY AND PRACTICES BY MEASURE Import Restrictions and Licensing The information on imports subject to licensing described (on page 46 paragraph 35 of the Secretariat Report as well as in Table AIII.2) appears to be different from the products listed in Brunei’s import licensing questionnaire (G/LIC/N/3/BRN/1), including with respect to some important U.S. exports such as medical products and telecommunications equipment. We would appreciate information on Brunei’s plans for updating its import licensing notifications.

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Answer: Brunei Darussalam will look into updating its outstanding notifications where appropriate. Standards and Sanitary and Phytosanitary Measures The United States acknowledges the recent WTO TBT notification from Brunei on its proposed halal requirements. The United States is in the process of reviewing this notification and providing comments on the proposed measure. We note that the Secretariat Report (page 49 paragraph 46) refers to the permit requirements in the Halal Meat Act and the Halal Certificate and Halal Label Order 2005. At the time of publication, halal meat and poultry could only be imported from Malaysia and Australia. The Report adds that live cattle are imported from Brunei's state-owned cattle farm located in northern Australia. Based on this information, we have the following questions: • Will Brunei's halal requirements and the process for obtaining approvals be available online? If

yes, please identify the website. If not, where will the final rules and requirements be published? Answer: At this time, there are two conditions for rules relating to halal food in Brunei Darussalam, namely:

i. The Halal Meat Act; and ii. The Halal Certificate and Halal Label Order 2005

Both these legislative instruments are available from the Brunei Darussalam Printing Office. They are not yet available online. However, the Government is currently looking into this. • Regarding restrictions on beef and poultry, what steps must foreign slaughterhouses (abattoirs)

take in order for the Minister of Religious Affairs to approve these products for importation into Brunei?

Answer: Interest parties must obtain permission from the Department of Halal Food (Protection) and include the following:

i. A letter requesting permission; ii. Twin forms A or B or C or D; iii. A profile of the firm/abattoir that intends to export meat into Brunei Darussalam iv. Copies of certificates from the authorities in their originating countries such as

certificates showing that the country is free of contagious and easily communicable diseases such as avian flu, foot and mouth disease, mad-cow disease and the like; in accordance with the OIE.

v. A valid slaughtering certificate for the abattoir/slaughtering house that is applying. vi. Certificates showing accreditation such as HACCP, VHM, GMP, ISO, etc. that have been

issued by the authorities in the country to the applying abattoir.

The letter requesting permission to export halal meat into Brunei Darussalam must be submitted to the Authority Issuing Board for Halal Import Permits (Jawatankuasa Lembaga Mengeluarlan Permit Import Halal or LMPIH) and if approved, it will be submitted to the Brunei Islamic Religious Council (Majis Ugama Islam Brunei or MUIB). If MUIB agrees with the endorsement of the abattoir by LMPIH, MUIB will instruct the Inspection Authority (JP) to inspect the abattoir. JP will give a report

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on its findings to MUIB. MUIB, upon satisfactory assessment of the applying abattoir’s report, i.e. the abattoir meets all the requirements to import meat into Brunei Darussalam, will send two safety instructors to the abattoir at the expense of the applying abattoir. • Are Malaysia and Australia the only WTO Members with approved abattoirs? To date, how many

foreign abattoirs has Brunei approved? How long is the approval process? Answer: No, Malaysia and Australia are not the only WTO Members with approved abattoirs. There are currently 6 WTO members with approved abattoirs, namely: Malaysia, Indonesia, Australia, Saudi Arabia, China and India. The length of approval is dependant on the peculiarities of each application as determined by the Halal Board of Brunei Darussalam. • Will Brunei’s halal requirements allow for the use of facilities that have been properly cleaned in

accordance with Islamic requirements, if they have been used once for non-halal foods? If not, please explain.

Answer: Brunei Darussalam will allow the use of facility or machinery that previously produced non-halal food to be used provided that the facility or machinery has been cleansed according to Islamic rites. • Does Brunei require all food processing plants in foreign countries to undergo site inspection as a

condition for approval? Answer: Brunei Darussalam does not require site inspections for food processing plants. However, for ‘Brunei Halal’ certification for food processing plants, such plants must undergo site inspection in accordance with the Halal Standard (PBD 24:2007). • Do food ingredients like additives, preservatives and coloring require Brunei’s religious

authorities’ approval? Answer: If potential foreign exporters intend to seek ‘Brunei Halal’ certification from MUIB, then approval must be obtained from the religious authorities. Otherwise, interested parties must merely comply with the requirements under the Public Health (Food) Act under the Ministry of Health. State Trading According to the Secretariat Report (page 54 paragraph 70), little information is available about the trading activities of state enterprises including the Ministry of Finance’s Department of Information Technology and State Stores, which handles rice imports, and we could find no notifications to the Working Party on State Enterprises. In light of the important role played by state enterprises in

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Brunei, we urge the government of Brunei to submit these notifications. Does Brunei have plans do so?

Answer: Brunei Darussalam will look into updating its outstanding notifications where appropriate. However, Brunei Darussalam understands that the ITSS is not a state trading enterprise as it does not meet the definition of a State Trading Enterprise under the WTO. The ITSS functions as a body to purchase and store rice and sugar for reasons of national food security. ITSS is not given special and exclusive rights to purchase such items. There are no restrictions on importation of rice and sugar as businesses are allowed to import rice and sugar with a permit. Subsidies

The Secretariat Report identifies several subsidy programs that appear to be notifiable under Article 25 of the Agreement on Subsidies and Countervailing Measures. These include the Investment Incentives Order 2001, the Pioneer Status and Income Tax Relief program, and other tax and tariff exemptions for companies investing in the Brunei-Indonesia-Malaysia-Philippines East Asian Growth Area (BIMP-EAGA). The Secretariat's Report also notes that the only subsidies notification Brunei has submitted pursuant to Article 25 of the Agreement on Subsidies and Countervailing Measures was in 1997. What are Brunei’s plans for submitting its next subsidies notification?

Answer: Brunei Darussalam will look into updating its outstanding notifications where appropriate. Intellectual Property Rights When does Brunei expect to implement the Patent Order of 1999 (page 62 paragraph 107 of the Secretariat Report)? Answer: Brunei Darussalam has just received comments on its Draft Patent Regulations from WIPO. The IP Division is currently taking the necessary steps to finalise the Regulations with a view to implementing both the Draft Patent Order and Regulations in the near future. On copyrights and related rights (page 64 paragraph 114 of the Secretariat Report), what is the status of the amendments to the Copyright Order? What is Brunei’s projected timing for implementation? • Will the amendments contain provisions to address enforcement against infringements in the

digital environment and electronic commerce? • Are there plans to increase public awareness activities regarding the importance of IPR

enforcement in the digital realm? • Is Brunei considering giving ex officio authority to Police and Customs officials to enforce against

pirated works? Providing ex officio authority to law enforcement would remove the need for rights holders to participate in every case, which is not possible for many rights holders because of resource constraints, while allowing authorities to act against illicit goods.

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Answer: 1. The amendments had been reviewed and discussed amongst relevant agencies and it was decided

that further review was needed to be done on certain other areas. Further comparison work with legislations from other countries are also to be carried out.

2. Copyright infringements are actionable under the current law whether the conduct of the crime is

done physically or through the digital environment. 3. AGC maintains continuous awareness programs on the importance of IPR and will include such

additions or amendments to its contents as appear necessary. 4. Ex-officio authority is vested in the police under the current law. The police however would not

normally act without a general or specific complaint / notice from the rights holder especially on the issue of pirated works. This is due to the fact that such offences arise from infringements of licensing arrangements and agreements and affected parties should be responsible for providing the police with necessary information and documents. For e.g. where a rights holder gives adequate notice that their titles should only be obtained from their exclusive licencee in country X and no other, the police can then contemplate enforcement action against those ordering infringing copies. The rights holder, representative or exclusive licencee who has authority to deal with infringement in Brunei Darussalam, will then be required to certify such infringing goods and appear in court to give evidence that their rights have been infringed. On the issue of Customs officials, for e.g a rights holder may give a notice in writing to Customs, with sufficient security as may be necessary, to treat such alleged infringing copies as prohibited goods, The rights holder can therefore rely on this and not have to be ever present in the country.

Does Brunei intend to accede to the WIPO Internet Treaties? Answer: Brunei Darussalam is currently considering the feasibility of acceding to the WIPO Internet Treaties and hopes to accede in the near future. With respect to copyright and related rights (page 65 paragraph 119 of the Secretariat Report), what process should rights holders follow to invoke border enforcement measures to prevent import of infringing goods? Is this information available to the public? Answer: For copyright, the owner of the copyright may give a notice in writing to the Controller of Customs, with sufficient security as may be necessary, to treat such alleged infringing copies as prohibited goods. This information on copyright and related rights is contained in the Copyright Order. A copy of the Order may be purchased from the Government Printing Department and the library of the Attorney General’s Chambers. Such information has also been made available to requesting parties. With respect to criminal cases, what is the process for rights holders to follow in filing a complaint? Is this information available to the public?

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Answer: Rights holders may lodge a complaint with the police and file in required documents proving they own the rights alleged to have been infringed. Due to evidential requirements on mens rea, prior notice of their rights would be important, such prior notice can be done by advertisements in the local newspaper or notice to vendors. This information is also contained in the Copyright Order. A copy of the Order may be purchased from the Government Printing Department and the library of the Attorney General’s Chambers. Such information has also been made available to requesting parties. How does Brunei prevent unauthorized uses of well-known marks on dissimilar goods? (Per TRIPS Article 16(3), WTO members must prevent unauthorized uses of registered, well-known trademarks, even if those uses are on goods or services that are dissimilar to the goods/services associated with the well-known mark if (1) the unauthorized use would suggest a false connection between the goods and the owner of the well-known trademark, and (2) the use damages the trademark owner’s interests.) Answer: Brunei Darussalam does not have specific provisions on ‘dilution’ of trade marks but the provisions on the protection of well-known trade marks can be found in the Trade Marks Act (Cap 98), namely section – 54. (1) References in this Act to a trade mark which is entitled to protection under the Paris Convention as a well-known trade mark, including such a trade mark entitled to the benefits of the Paris Convention by virtue of the World Trade Organisation Agreement are to the trade mark of a person who – (a) is a citizen of, is domiciled, ordinarily resident or has a right of abode in, a Paris Convention country or a World Trade Organisation country; or (b) is domiciled in, or has a real and effective industrial or commercial establishment in, any such country whether or not that person carries on business, or has any goodwill, in Brunei Darussalam. References to the proprietor of such a trade mark shall be construed accordingly. (2) Subject to section 49, the proprietor of a trade mark which is entitled to protection under the Paris Convention as a well-known trade mark is entitled to restrain by injunction the use in Brunei Darussalam of a trade mark which, or the essential part of which, is identical or similar to his trade mark, in relation to identical or similar goods or services, where the use is likely to cause confusion. (3) Nothing in subsection (2) affects the continuation of any bona fide use of a trade mark begun before the commencement of this section. As there is no specific legal provision that deals with the unauthorised uses of well-known marks on dissimilar goods, the owner of such a well known trademark may pursue civil action under the common law of ‘passing-off’ in cases of infringements of a well-known mark in dissimilar goods. Do the marks that Brunei has registered as certification marks include marks that are geographical indications?

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Answer: Yes, they include marks that are geographical indications. Regarding intellectual property rights enforcement and penalties (page 66 paragraph 125 of the Secretariat Report), how many criminal prosecutions have been undertaken due to offenses under the Trade Marks Act of 1999? What types of penalties were imposed? Answer: Trademark infringement cases include the following–

1996- 14 vendors were convicted 1997 – 2 vendors were convicted. Another 2 were not proceeded with because one did not have authority to take enforcement action & goods were affirmed as genuine by the rights holder and the other had not registered their trademark in Brunei Darussalam. 1999 - 9 vendors had items seized which were later proved to be genuine and from an authorized distributor 2000 – another complaint withdrawn as items were proven genuine 2001 – one complaint which was later withdrawn on mutual agreement 2003 – 5 vendors had items seized which were later proved to be genuine

Statistics on penalties were not available but common practice would involve the imposition of fines. TRADE POLICIES AND PRACTICES BY SECTOR Agriculture Page 70 paragraph 15 of the Secretariat Report comments that "some agricultural products, i.e., rice, sugar, and salt, are subject to import restrictions.” The Secretariat Report also says “most of Brunei's rice is imported directly by the Department of Information Technology and State Stores under a government-to-government contract from Thailand." • What specific restrictions are in place on these products? Please provide a complete list of

agricultural products facing such import restrictions. Answer: For rice and sugar, the restriction is importation of up to 10% of total import volume of each product. Salt is no longer an import restricted product. A complete list of import restrictions and import licensing on agricultural products can be found in the WTO Secretariat Report, in Table III.4 and Table AIII.2 respectively. • Are licenses required to import rice, sugar, and salt? What is the procedure for obtaining such

licenses? Has Brunei included this information in its WTO import licensing notifications?

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Answer: Brunei wishes to inform that approval permits are required for the importation of rice and sugar. These permits can be obtained from the Department of Information Technology and State Stores under the Ministry of Finance. Salt is no longer an import restricted product. Page 70 paragraph 16 of the Secretariat Report notes that imports of beef and poultry are subject to a "food balancing requirement,” apparently adjusting imports to meet expected demand. • What is the process for determining import volumes? Is the process public? What ministry or

agency makes the determination? Is the decision published in a gazette or other public notice? Answer: The process for determining import volumes is determined by the Department of Agriculture (Ministry of Industry and Primary Resources) and is based on the monitoring of per capita consumption and the trend in supply and demand. Factors affecting the regular consumption include festive seasons (such as religious holidays and state events) and environmental factors (leading to disruptions in crop or livestock and poultry production). Forestry Page 70 paragraph 18 of the Secretariat Report mentions that illegal logging appears to be increasing near border areas. We know Brunei attaches great importance to conservation and sustainable forestry management. We would welcome an update on Brunei’s own efforts to curb illegal logging and its associated trade, as well as the government’s cooperative efforts with its neighbours, including the tri-national effort to protect the Heart of Borneo. Answer: A national Committee involving various enforcement agencies including the Forestry Department, Royal Brunei Police Force and the Royal Brunei Armed Forces was set up to oversee the issue of illegal logging and its associated trade. Amongst measures identified to address the issue is through the enhancement of bilateral cooperation and regional efforts under the Heart of Borneo Initiative. As this Initiative is still in the early stages of implementation, participating countries are still in the process of drafting National Project Implementation Frameworks before bilateral/sub-regional initiatives can be undertaken. Services Page 78, paragraph 49 of the Secretariat Report: Brunei recognizes the importance of services for economic growth and diversification and has developed the Service Hub for Trade and Tourism (SHuTT) to promote priority services sectors. • Please describe the substance and operation of the SHuTT program. What is the basis upon which

Brunei determines which of its services sectors is a priority? How does Brunei promote priority services sectors?

Answer: [ Brunei Darussalam will provide this information at a later date. ]

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• Brunei has identified tourism as a priority sector and has set a target of 250,000 tourists by 2010. How does Brunei intend to reach this goal? What further actions is Brunei taking to develop related industries such as transport, communications, and banking services?

Answer: Our Government Report (see para. 73, page 17) has identified the steps to achieve the said-goal. As mentioned previously, transport, communications and financial services form the niche sectors which Brunei would like to develop, and hence the active promotion by the BEDB has been undertaken. • Is Brunei considering additional commitments in the GATS as a way to reflect the importance of

services to the diversification and growth of Brunei’s economy? Answer: In light of the importance of services, Brunei is positively considering offering a revised set of commitments in GATS. Page 81, Paragraph 61 of the Secretariat Report. The Secretariat Report mentioned that Brunei had hoped to harmonize Islamic and conventional banking regulations by 2007. Could Brunei inform us of the current timeline to complete this harmonization? Which regulations require harmonization? What is the status of the new Islamic Banking Order 2007? Answer: The introduction of the Islamic Banking Order, 2007 has been delayed to 2008 due to unforeseen technical circumstances. Regulations that require harmonization includes amongst others capital and prudential regulations which will complement the existing Banking Order, 2006. The draft Islamic Banking Order 2007 is still being finalized by the legislative drafting division of the Attorney General’s Chambers. COLOMBIA Report by the Secretariat, WT/TPR/S/196 Questions: V. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (4) FOREIGN INVESTMENT REGIME (i) Legislative and institutional framework and investment procedures "45. …The BINA (Brunei Industrial Development Authority) has developed several industrial parks near the Muara Port and in other parts of Brunei, with infrastructure to facilitate small and medium-sized enterprises."

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• What is the difference between the industrial estates, industrial parks and export processing zones?

• What kind of incentives are granted to enterprises setting up in the industrial estates? • What is the annual budget allocated by the Government of Brunei for incentives granted to

the industrial estates? • Can national and local enterprises from Brunei set up in the industrial estates? If so, do they

receive the same incentives as foreign enterprises established in such estates? • Can enterprises from any sector set up in the industrial estates?

Answer: The term industrial parks/estates are used interchangeably. There are currently no export processing zones in Brunei. Details of the relevant tax incentives may be found under the Investment Incentives Order 2001. Other incentives provided by MIPR: facilities provided by industrial, agriculture and fisheries sites. Mainly in the form of infrastructure facilities as incentives such as financing (in the form of government guaranteed loans) and subsidise feed & fertiliser are only available to local businesses (including JVs with foreign companies). Yes, national and local enterprises from Brunei can set up in the industrial parks/estates and will receive the same incentives as foreign enterprises established in such parks/estates. Priority listing for industrial parks/estates is given to manufacturing and processing. Other sectors are as mentioned in the preferred list issued by the Ministry of Industry and Primary Resources. "47. Additionally, the BEDB (Brunei Economic Development Board) announced significant incentives and loans to encourage other investment projects from abroad. International consultancies have confirmed the growth potential for hospitality and tourism, focusing on eco-tourism, sports and medical tourism; financial services, aiming at high-end, niche investment management services and asset fund management; transportation and logistics primarily focusing on aircraft maintenance services; and business services, concentrating on software development and business process outsourcing."

• What are the BEDB incentives mentioned in this paragraph for other investment projects from abroad?

• Do any tax exemptions other those listed in Table AIII.3 apply to the investments mentioned

in this paragraph? • Will the interest on the loans announced by the BEDB to encourage other investment projects

from abroad have special rates or rates subsidized by the Government of Brunei? Answer: BEDB utilises The Investment Incentives Order 2001, as referred to above. It includes tax exemptions (as those listed in Table AIII.3), deductable allowances, and import duties depending on the industries envolved.

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VI. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (viii) Standards and sanitary and phytosanitary measures "47. Other sanitary and health restrictions are maintained under the Poisons Act and the Misuse of Drugs Regulations, which are enforced by the Pharmaceutical Enforcement Services, in the Ministry of Health. This includes regulation of all imports and exports of pharmaceuticals, chemicals, agri-chemicals, pesticides, etc. in collaboration with Customs … "

• How or from where may the regulations mentioned in this paragraph be obtained? • Are these regulations in English? • How or from where may the plant regulations and animal regulations mentioned in

paragraphs 44 and 45 of this section be obtained in English? Answer: Poisons Act and Misuse of Drugs Regulations are available on the Department of Pharmaceutical Services website at: http://www.moh.gov.bn/medhealthservices/pharmacyservices.htm The plant regulations and animal regulations can be obtained from the website of the Department of Agriculture, Ministry of Industry and Primary Resources at http://www.agriculture.gov.bn/ Both these Acts are available in English. (x) Import-related operations of state enterprises "61. Brunei has not notified any state-trading enterprises to the WTO. Certain products subject to import restrictions and licensing, such as rice and sugar, are imported directly by the Government through the Department of Information Technology and State Stores, in the Ministry of Finance. In particular, the Department imports much of Brunei's rice through BruSiam Food Alliance, a joint venture between the governments of Brunei and Thailand. The Department also issues import permits for other restricted products, such as salt."

• In addition to rice, sugar and salt, what other agricultural and non-agricultural products require a permit for importation into Brunei?

Answer: A list containing agricultural and non-agricultural products requiring an import permit can be found under Table AIII.2 (page 109) of the Secretariat Report. Brunei Darussalam is also able to provide a list of Import Licenses and Permits issued by the Ministry of Industry and Primary Resources (attached as Annex 1). These two lists are non-exhaustive, however, as unfortunately due to time constraints Brunei is unable to furnish Colombia with a list from the other Ministries/agencies. Brunei Darussalam would also like to take this opportunity to clarify that the Department of Information Technology and State Stores (ITSS) is not a state trading enterprise as defined under the WTO.

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VII. TRADE POLICIES BY SECTOR (5) SERVICES (ii) Financial services "63. The Government established the Brunei International Financial Centre (BIFC) in 2000 to diversify financial services in Brunei and to establish Brunei as an off-shore banking and trading centre for the region offering both conventional and Islamic financial services. The legislation to accompany the formation of the BIFC sought to introduce measures against money laundering activities and to bring Brunei's standards up to international standards, thereby improving transparency and attracting companies to the BIFC … "

• In addition to the Money Laundering Order, has Brunei adopted any other measures to counteract this practice?

• What is the substance of the Money Laundering Order? Answer: Yes. They are:

• Criminal Conduct (Recovery of Proceeds) Order, 2000 • Anti Terrorism Order, 2002 • Establishment of Financial Intelligence Unit in February 2007 • Issuing guidelines on KYC/CDD to Financial Institutions • Issuing guidelines on STR and STR forms

The Money Laundering Order is an order to prevent the use of financial system for money laundering.

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Annex 1

Import Licenses & Permits Issued by the Ministry of Industry and Primary Resources

# Product Document Issuing Authority

i. Live & Fresh Fish Import Permit Conditions: 1 Import permit per consignment valid

for 1 month Live fish - need health certificate for

exporting countries

Department of Fisheries

ii. Cement Import Permit Condition (sample): Importers must be registered with BINA 1 permit per consignment valid for 2

months

BINA

iii. Artesian or Drinking Water Import Permit Condition (sample): Importers must be registered with BINA 1 permit per consignment valid for 2

months

BINA

iv. Plant and Plant Products (Fruits, Vegetables, Flowers, flower-cuttings, seeds)

Import Permit Conditions: Importers must be registered with the Department of Agriculture Phytosanitary Certificate

Department of Agriculture (Procedures as attached) Chapter 43 – Agricultural Pests and Noxious Plants Act Note : DoA is in the process of drafting the plant quarantine act. Note : As for protected plant species – CITES Regulations Wild Flora and Fauna Regulations 2007

v. Live Animals Import Permit Veterinary Health Certificate issued by veterinarian authorised in the country concerned within 7 days before departure

Department of Agriculture (Procedures as attached) Chapter 47 – Subsidiary Legislation ‘Quarantine and Prevention of Disease (Animals) Regulations’

vi. [Non-Halal Meat – Pork] Import Permit Health Certificate from the exporting country

Department of Agriculture (Procedures as attached) Chapter 47 – Subsidiary Legislation ‘Quarantine and Prevention of Disease (Animals) Regulations’

vi. Meat and Meat Products (Halal Meat) (Fresh, Frozen or Chilled)

(Refer to Ministry of Religious Affairs / Syariah Department / Lembaga Mengeluar Import Permit Daging Halal)

vii. Processed Food (Refer to MoH) (attached info)

viii. Inputs from Department of Forestry

Import/Export Permit per consignment per month

Forestry Dept. Import for all forest products = $20 per permit Export for all value added product (semi and finished products) = free AP = $20 per permit/month/lorry AP = $40 per permit/month/barge

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JAPAN The Government Report (WT/TPR/G/196) V. TRADE POLICY FRAMEWORK (2) SERVICES (Question 1: page 8, paragraph 23) (Secretariat Report: page 50, paragraph 50) Could Brunei explain the reason why Brunei Darussalam has not made liberalization commitments in the construction sector? Answer: At the moment only Government projects in the Construction sector are regulated. However projects under non-Government sectors are not regulated. Brunei Darussalam has made commitments in sectors in which it has identified as a priority for liberalization. Any future liberalization would be dependant on the outcome of negotiations. (Question 2: page 8, paragraph 23) (1) In such sectors as (v) Financial (Insurance and Insurance related services) and (vi) Other Financial Services, please provide specific cases where Brunei Darussalam has made commitments in its EPAs/FTAs which is more liberal than its offer made by Brunei under the DDA services negotiations. (2) If it is the case, please explain these commitments precisely. Answer: No, except under the ASEAN Framework Agreement on Services (AFAS). The Secretariat Report (WT/TPR/S/196) III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs procedures (Question 3: page 34, paragraph 9-10) Japanese companies operating in Brunei Darussalam have reported to the Japanese Government that as Brunei Darussalam does not have any bonded areas, companies will be required to pay additional fees per night unless concerned companies do not pick up their imported goods within three days after notification of arrival at ports. (1) In light of facilitation of customs procedures, please indicate whether the Government of Brunei Darussalam plans to establish bonded areas and bonded warehouses.

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According to the Secretariat report, the Government of Brunei Darussalam promotes the e-government initiative aiming to provide an infrastructure using IT as a platform for paperless transactions. (2) Please indicate its expectations to introduce an electric system into Customs procedures in Brunei. Answer: (1) Brunei Darussalam is currently in the process of establishing such entities. (2) Brunei Darussalam recognizes the benefits of using an electronic system. Brunei is in the process of establishing several projects which incorporates its e-Government ambitions such as the National Single Window, the ASEAN Single Window, E-Customs and Online Issuance of Certificate of Origin. As such, Brunei Darussalam welcomes any technical assistance offered by WTO Member Countries. (iii) Applied tariffs (Question 4: page 38, paragraph 21) Japan understands that new legislations became effective on January 1st 2008, in order to eliminate the customs tariffs of automotive products, tobacco and alcohol beverages, while at the same time, imposing commodity taxes at the same rate as the customs tariffs to these goods. Japan is of the view that automotive products are one of the major import goods and regulations introduced which are mentioned above may have a significant impact on the trade policy of Brunei Darussalam. In light of transparency, please provide detailed information on this regulation, as well as an explanation of the criteria and background of this regulation. Answer: The elimination of custom tariffs is to fulfill Brunei Darussalam’s commitments in its bilateral and regional Free Trade Agreements, as well as in the multilateral arrangements. The fiscal policies that Brunei Darussalam have implemented are non-discriminatory and consistent with our WTO obligations. (4) MEASURES AFFECTING PRODUCTION AND TRADE (i) Legal framework for business (Question 5: page 54, paragraph 71, 73) According to the Secretariat report, at least half the directors of a company incorporated in Brunei must be either nationals of Brunei or ordinarily resident in Brunei under the Companies Act (Cap 39). (1) Does the Government of Brunei think this regulation is still necessary? (2) Please explain the rationale of this regulation.

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Answer: This policy is reflected under section 138(2) of the Companies Act (Cap. 39). The rationale of the provision has always been to secure the presence of a local director who will be accountable and answerable for the company’s matters and liabilities. This in turn raises the credibility of the investment and investor. Therefore, Brunei Darussalam does think that this regulation is still necessary. (vii) Intellectual property rights (Question 6: page 64-65, paragraph 118) Japanese companies operating in Brunei have reported to the Japanese Government that they are suffering from an extremely large number of pirated goods in such products as maintenance equipment. According to the secretariat report, the Government of Brunei Darussalam makes efforts to strengthen enforcement for protecting intellectual property rights. Please explain specific measures taken by the Government of Brunei Darussalam against pirated goods. Answer: Brunei Darussalam has enacted the relevant legislations on which rights holders can avail themselves in cases where their rights had been infringed.

On the issue of pirated goods, the Royal Brunei Police Force has ex-officio powers to take action, however as limited number of rights holders are present in Brunei Darussalam, a complaint is the usual basis for action as it indicates that the particular rights holder will be present to provide technical assistance in identifying where infringements have occurred and appearing in court as the complainant during court proceedings. Border enforcement measures are also available for infringements under Copyright Order. The owner of the copyright may give a notice in writing to the Controller of Customs, with sufficient security as necessary to treat such alleged infringing copies as prohibited goods. The complaints of IP rights holders as well as their presence and cooperation with the relevant enforcement agencies are needed to ensure that measures can be taken against pirated goods. Perhaps Japan could clarify on the ‘extremely large number of pirated goods in such products as maintenance equipment’. In the present example, the appropriate procedure to follow is for the companies to lodge complaints to the police, providing information to them as well as other relevant agencies regarding the pirated goods that are damaging their business. Such complaints and information will be important in the assessment of the proper enforcement action to be taken as any resulting enforcement action would need to conform to the laws as well as secure evidence that can be used for prosecution.

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CHINESE TAIPEI REPORT BY BRUNEI DARUSSALAM (WT/TPR/G/196) V. TRADE POLICY FRAMEWORK (3) INVESTMENT (Page 9, paragraph 27) As indicated in the Report, the 2003 revised and amended Brunei Economic Development Board (BEDB) Act strengthens the BEDB's powers for the promotion of foreign direct investment, development of joint ventures in strategic sectors and the provision of efficient services to investors. Subject to the provisions of the Act, the BEDB is now also a corporate body with perpetual succession and a common seal of power.

Please could Brunei elaborate further on the status of the BEDB: (i) Is it an agency of the Brunei government? (ii) What is the nature and validity of BEDB’s related measures, including agreements entered

into with foreign investors? Should these be viewed as measures of the Brunei government? Answer: Under the BEDB Act, the BEDB is a corporate body with perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire and dispose of property, both movable and immovable, and may sue and be sued in its corporate name and perform such other acts as bodies corporate may by law perform. Section 9 of the BEDB Act provides that the BEDB may enter into contracts with other persons on behalf of the Board, for the carrying into effect the purpose of the Act. All contractual acts and measures taken by BEDB are binding on the BEDB. (4) INTELLECTUAL PROPERTY RIGHTS (Page 10, paragraph 31) The Report states that Brunei’s enforcement of intellectual property rights is based on complaints lodged by the registered owner. Since Brunei has acceded to the Berne Convention for the Protection of Literary and Artistic Works, which asks for no formal conditions to possess a copyright, does the above imply that copyright holders are excluded from any remedy for infringements if they are not on the Brunei government’s registry? Answer: No, copyright holders are not excluded from any remedy for infringements by reason of not being on a ‘registry’ of copyright. There is no requirement for registration under the Copyright Order. The statement underlines the fact that the enforcement of IP rights can only be successfully implemented with the presence and assistance of right holders, be it in the form of the initial

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complaint of infringement, providing a notice of the ownership of the right as well as providing documentary and evidentiary information necessary for the prosecution of any cases. (6) GOVERNMENT LINKED COMPANIES (Page 11, paragraph 37) We note that Semaun Holdings was established as a domestic investment and trading arm of the government, and has been placed under the jurisdiction of the Ministry of Industry and Primary Resources. Its mission appears to be to develop Brunei’s strategic industries. (i) We understand that there is a successful joint venture in aquaculture between Semaun

Holdings and one of our investors. Could we please have information about other successful joint ventures with foreign investors?

(ii) We are also interested in learning about Semaun Holdings’ key investment plans, both short-

and long-term. (iii) Please could Brunei also inform us of the limits on foreign equity holdings in such joint

ventures? Answer: (i) Semaun Holdings Sdn Bhd currently has joint ventures with partners from Singapore, Canada, Sweden and Australia. (ii) Short term: Enter into and develop joint ventures in areas where the private sector is not able to penetrate. Long term: Divesture of those companies. (iii) Limits on foreign equity holdings are inline with those currently required by the Government subject to the sector concerned. V. SECTORAL POLICIES AND DEVELOPMENT (7) TELECOMMUNICATIONS (Page 15, paragraph 59) As indicated in the Report, DST Communications Sdn Bhd (DSTCom), was established in 1995 using the GSM platform, and B-Mobile Communications Sdn. Bhd (B-Mobile) was established in 2005 using the 3G (W-CDMA) platform. These two companies are the only providers using the GSM or W-CDMA platforms. (the GSM platform is mainly used for voice services; 3G is mainly for mobile data services) (i) Will the Authority for Info-Communication Technology Industry (AITI)be issuing more new

licences for GSM and 3G respectively to bring in more competition? (ii) Is there any plan for issuing Wireless Broadband Access services (e.g. WiMAX)? If so, will

the WBA licence be available to foreign investors?

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Answer: (i) Yes, provided that it is commercially viable and meets the market needs. (ii) Yes, AITI is considering issuing WBA licenses. These WBA licenses will be available to foreign investors that partner with one of the local operators as explained in the AITI Operational Handbook. REPORT BY THE WTO SECRETARIAT (WT/TPR/S/196) II. ECONOMIC ENVIRONMENT (2) RECENT ECONOMIC DEVELOPMENTS (iv) Structural policies: diversification of the economy (Page 11, paragraph 29) Despite Brunei being blessed with considerable natural oil and gas resources, the government, being prudent and long-sighted, has launched several initiatives to place the economy on a path to sustainable growth. In order to persuade our manufacturers to consider Brunei as an ideal place to invest for the purposes of expanding the sale of their products to the Middle East market, could Brunei please provide details of incentives offered to foreign investors, e.g. in the acquisition of land, and in relation to labour policies and financial incentives. Answer: The Investment Incentives Order 2001 administered by the Ministry of Industry and Primary Resources offers investment incentives in the form of tax exemption under the following heading:

• Pioneer Industries • Pioneer Services Companies • Post-pioneers Companies • Expansion of Established Enterprises • Expanding Service Companies • Production For Export • Export For Service • International Trade Incentives • Foreign Loans For Productive Equipment • Investment Allowances • Warehousing and Servicing Incentives • Investment in New Technology Companies • Overseas Investment and Venture Capital • Incentives Other Incentives Under The Income Tax (CAP 35)

(Page 11, paragraph 31) We note from the Report that, despite some privatization in several key sectors of the economy, for example oil and gas, there continues to be a strong government presence in the economy. The government is the largest employer in Brunei and has large shareholdings in key oil and gas companies.

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It would be appreciated if Brunei could please explain how the government lessens or deals with situations in the oil and gas sector where competition may be hindered by the presence of state-owned monopolies? Answer: There is no state owned monopoly in the oil and gas sector as there are several multinational companies in Brunei Darussalam, such as Brunei Shell, Total, BHP Billiton, Mitsubishi Corp., Conoco Phillips. Brunei Darussalam also refers Chinese Taipei to para. 26 page 72 of the WTO Secretariat report which highlights that two international consortia (one led by Canada’s Loon Energy and another led by UK-registered Valiant International Petroleum) have also been awarded exploration blocks in Brunei thus indicating that there is competition in the oil and gas sector. (5) OUTLOOK (Page 17, paragraph 43) We also find it difficult to obtain timely trade and economic data from Brunei, though updated statistical data plays an important role in the investors’ decision-making process. Does the Brunei government have any plans to improve the efficiency of its provision of economic and trade data? Given today’s global use of the Internet as a primary source of information, does Brunei have plans to include more economic statistical data on its official website in the future? Answer: Please refer to the answer to Question 2 from Canada. III. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES

(4) FOREIGN INVESTMENT REGIME (Page 29, paragraph 43) As indicated in the Report, foreign investment is open except in restricted sectors in which the Government is the major provider of services, such as the mass media, telecommunications, posts, energy and utilities. (i) The Brunei government has opened many industries to foreign investment, but not the

telecommunications industry. In line with the trend toward telecoms deregulation, is the Brunei government preparing to open this sector to foreign investment?

(ii) Is Brunei able to describe to us at this stage what are likely to be the conditions, the timeline,

and the ceilings to such foreign investment? Answer: The telecommunications sector in Brunei is open to foreign investment. If foreign providers wish to invest in the Brunei market, they may do so by acquiring equity in the existing providers through the course of normal commercial negotiations.

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As per AiTi’s published Operational Handbook, the maximum allowable foreign equity participation in the telecommunications sector is 50%. (Page 31, Box II.2) As indicated in Box II.2, “… investors enter into a Cooperation Agreement with the BEDB. In signing the agreement, the BEDB helps the investor in securing incentives, utilities, and infrastructure. The investor commits to agreed quantifiable and qualitative undertakings on a best endeavours basis in such areas as employment, transfer of technology, local participation, promotion of local SMEs, spin-offs, and community development.” Please could Brunei elaborate further on whether, should BEDB default on the agreement, responsibility for non-performance could be attributed to the Brunei government and the relevant dispute resolution process provided by the Brunei government? Answer: As provided by the BEDB Act, the BEDB may enter into contracts and may be sued and be sued in its corporate name. All contractual acts and measures taken by BEDB are binding on the BEDB. Resolution of Disputes would be governed by the contractual agreement. In the event of dispute or disagreement, the BEDB will meet with investors to resolve the issue. Failing to reach a consensus on the way forward, either party is allowed to refer the issue for arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce. The arbitration tribunal shall consist of a single arbitrator appointed by agreement between the parties. The place of arbitration shall be in Singapore and the language of arbitration shall be in English. Both parties agreed that an award of determination by any duly appointed arbitrator in any arbitration proceedings pursuant to this shall be conclusive and binding upon it and may be enforced in any Court of competent jurisdiction. Both parties also agreed where possible to continue perform their obligation under the Cooperation Agreement in relation to other subject matters which are not in dispute or in disagreement pending resolution of the aforesaid dispute or disagreement. III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (vii) Import prohibitions, restrictions, and licensing (a) Import prohibitions (Page 44, paragraph 33) As indicated in the Report, the Government of Brunei maintains import prohibitions on a limited number of products, including opium, indecent and obscene printed matter, firecrackers, and vaccines from us. (i) Would Brunei please provide further details of the regulations on the import of vaccines to

Brunei and the main reasons why it prohibits the import of our vaccines in particular? (ii) Furthermore, if we fulfill all the requirements on vaccine imports, will the Government of

Brunei consider removing this ban?

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Answer: At present only vaccines which are manufactured in countries with “Good Manufacturing Practice” (“GMP”) and which are authorized by the Ministry of Health are allowed for importation. Brunei Darussalam is in the process of implementing a ‘Drug Registration’ system and any country is welcome to submit their registration once this system has been set up. (3) MEASURES DIRECTLY AFFECTING EXPORTS (ii) Export prohibitions, restrictions, and licensing (Page 53, paragraph 64) As indicated in the Report, consumer prices for rice and sugar are subject to ceilings, and export restrictions appear to be intended to ensure adequate domestic supply. (i) We should be grateful for more details on how the Brunei government sets the price ceilings

for rice and sugar. (ii) Will Brunei consider liberalizing the rice or sugar market in the future? Answer: (i) The price ceiling for rice and sugar at present is controlled by the Ministry of Finance based on recommendations made by the Department of Information Technology and State Stores. The determination on pricing is generally made by taking into account costs associated with importing these commodities as follows:-

• Supplier’s variable costs • Supplier’s administration costs • Safety stock management cost • Packaging cost • Surveyor’s inspection cost • Export handling expenses • Administration fee charged to the government • Insurance • Freight • Transportation from Muara to ITSS warehouse

(ii) Any consideration for liberalization would be entirely dependant on any changes in policy concerning food security, i.e. depending whether conditions on national food security have become more favorable. (4) MEASURES AFFECTING PRODUCTION AND TRADE (v) The public sector and private investment (b) Corporatization and privatization

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(Page 59, paragraph 95) In April 2006, the Government announced the corporatization of the Telecommunications Department. JTB's functions were split between two successor organizations, TelBru, responsible for delivering telecom services, and AiTi, responsible for regulating the local ICT industry. In addition, the government partially privatized certain services, such as Internet access and mobile telephony in 2006. (i) In line with the trend toward telecom deregulation, is the Brunei government preparing to

open the telecom sector to foreign investment, and, if so, what are likely to be the conditions, the timeline, and the ceilings to such foreign investment?

(ii) Does the Brunei government have other practical privatization goals in areas other than

telecommunication services, and, if so, will there be any limitations placed on foreign investors during the privatization process?

Answer: (i) Please refer to the answer to the question on page 5: II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (4) FOREIGN INVESTMENT REGIME. (ii) Please refer to the answer to Question 13 from India’s first set of questions. (vii) Intellectual property rights (d) Copyright and related rights (Page 63, paragraph 113)

As indicated in the Report, Brunei grants copyright to published works for a period of 25 years from the year of the first publication. We would appreciate clarification from Brunei as to whether this means that “all types” of published works are granted copyright for such a term. If so, we wonder how the term of 25 years can be consistent with Article 7 of the Berne Convention (incorporated into TRIPS) and Article 12 of the TRIPS Agreement, both of which provide for several types of works to have copyright protection for 50 years from the year of their authorized publication or production? Answer: Publication generally means the issue of copies of the work to the public: §178(1). This definition is given in respect of all works in which copyright subsists. Thus all types of published works are granted copyright protection i.e. life of the author + 50 years. However, copyright in typographical arrangement of a published edition expires at the end of 25 years: §17. IV. TRADE POLICIES BY SECTOR (3) OIL AND GAS SECTOR (ii) Oil and gas industry (a) Petroleum refining and other downstream industries.

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(Page 75, paragraph 33) The Report indicates that the government of Brunei is keen to encourage investment in upstream and downstream investment activities. It would be appreciated if Brunei could please elaborate further on the following: (i) How does the government promote such investments? Are there any incentives or rewards for

foreign investors in this sector, and, if so, what are they? (ii) Please provide us with details of the procedures and contact information regarding

applications for investment in the oil and gas sector. (iii) Could we please be informed of any plans to modify the application procedure to make it a

more transparent mechanism, such as the introduction of open tenders for upstream exploration?

Answer: (i) Investments in activities categorized as having pioneer status would receive generous incentives in the form of tax holidays etc. (ii) Upstream exploration – invitation is done through open invitation with the conditions for the submission of bids clearly provided. For non-exploration investment – interested parties may contact the Petroleum Unit for advice etc. (iii) Open tendering for upstream exploration is already being practiced. (Page 75, paragraph 35) As indicated in the Report, Petroleum Brunei has chosen to award private companies the exploration rights for the blocks it controls. Could Brunei please provide us with details of Petroleum Brunei’s concrete conditions or reviewing criteria used in the process of issuing or approving exploration rights to foreign investors? Answer: The main criteria and conditions that would be used in assessing the bids received from the oil companies are provided in the documents with the Invitation to Bid. This includes among others the proposed minimum work programme i.e. commitment as to expenditure and number of exploration wells etc. INDIA 1. The Para 17 of the Brunei’s Report states that in 2006, its economy improved, as it grew by 5.1% compared to 2.7% in 2001. GDP growth was largely due to positive developments in the hydrocarbon, financial and private services sectors. The growth rate for the next five years is expected to be within the range of 2 to 4%. We request Brunei to share detailed composition of the GDP growth and %age contribution of each sector to the GDP.

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Answer: Please refer to page 1 and 2 of the Trade Policy Review Report by WTO Secretariat. For more information of GDP figures, please visit the Department of Economic Planning and Development’s website www.depd.gov.bn. 2. According to Para 38 of Brunei’s report, Semaun Holdings has a policy to divest of a company once the company is profitable and the Government has recovered its initial investment. Since commencing operations, Semaun Holdings has steadily been building up its portfolio of joint ventures and linked companies. However to date it has not divested any companies due to the failure of these companies to meet the criteria for divestment. Further, Para 14. of the Secretariat report mentions that relatively limited information is available on Semaun's contribution to GDP or its annual accounts, underlining a certain lack of transparency and public accountability in government policies. We request the delegation of Brunei to provide detailed information on if the investments of Semaun Holdings have not been profitable to divest, then what specific step with precise timelines the government proposes to take to make them profitable?

Answer:

Brunei Darussalam acknowledges the challenges facing these companies and as such is planning to conduct a review of the performance of Semaun Holdings’s subsidiary companies which are no longer viable. 3. Para 51 of Brunei’s report acknowledges that ready made garments constitute the third biggest export after crude oil and liquefied natural gas. Recently, the textiles and clothing sector industry has seen a decline. The number of companies in operation in this industry has fallen from 25 companies to merely 11. We would appreciate Brunei sharing with us its plans to strengthen this industry to compete on a global scale. Answer: There are no plans to strengthen the existing textile industry. 4. Para 1 of Secretariat reports that Brunei owes its prosperity mainly to its abundant petroleum (oil and natural gas) resources, whose share of GDP grew from 53% in 2002 to 69% in 2006, and whose share of exports rose from 88% to 96% during the same period. Nonetheless, between 2002 and 2006, the economy grew at a rather modest annual average real rate of 2.5%, which is insufficient to generate enough jobs for Brunei's growing labour force. As a result, official estimates put unemployment at some 4% in 2006, a cause for concern among Bruneians. What are the steps that the government is planning to take to address the issues in a comprehensive manner to reduce dependence on oil, diversify its economy, enhance its HRD skills to provide jobs to the growing population? Answer: (Please refer to the answers to Questions 3 and 4 from the EC) Brunei Darussalam has allocated BND250 million to its HRD Fund, for specific programmes and projects to enhance HRD. In addition, BND165 million has also been allocated to improve science, technology and R&D activities. 5. The Secretariat report also in Para 3 mentions that Corporate taxes and royalties paid by oil and natural gas companies now account for some 94% of all government revenue, up from 86% at the start of the review period in 2002. We would appreciate if Brunei could kindly clarify as to nature of

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the increase; to what extent was it due to the rise in oil revenue taxes and decline, if any, in non-oil related revenue taxes? Answer: The increase in revenue from the oil and gas companies was to some extent due to the rise in the price of oil. There has also been a small decline in non-oil related revenue taxes due to the number of textile factories that have closed down. 6. Para 5 of Secretariat reports that Brunei's institutional framework is characterized by a lack of transparency with respect to trade and trade-related policies, to the detriment of government accountability. We would appreciate if Brunei could please provide rationale for non-transparency and if it proposes to impart greater transparency and by when? Answer: Please refer to the answer to Question 1(a) from Canada. 7. Para 8 of the Secretariat report informs that in seeking to promote private sector development in non-oil and gas industries, Brunei overhauled its investment laws, and established the Brunei Economic Development Board (BEDB) in 2001 to promote Brunei as an investment destination. Has any evaluation of the work carried out since establishment of BEDB been conducted for an overall assessment of its performance and if so the results and steps taken to make it more effective? Answer:

The BEDB internally reviews its effectiveness and performance on a continuous basis. Some recent initiatives carried out by the BEDB include a BEDB Stakeholders Forum where it seeks to further align its objectives and strategy with various stakeholders including the public and private sector.

8. Foreign investment, including up to 100% foreign equity investment, is permitted in all sectors except those involving local natural resources (notably agriculture and fisheries) and those relating to national food security, for which minimum local participation of 30% is required. Does Brunei envisages liberalising these sectors to attract FDI and with what timelines?

Answer:

The Government has no plans to reduce limits on minimum local equity participation in sectors involving natural resources and those relating to food security.

9. Para 3 of the Secretariat report states that Brunei has bound nearly 93% of its tariff lines at the WTO; while the average applied tariff rate is low, the average bound rate is 25.8%, leaving a large gap between the applied and bound MFN rates. What steps does Brunei proposes to take to bridge this gap to bring about certainty for traders and other economic agents. Answer: Please refer to the answer to Question 27 from the EC. 10. Para 13 of Secretariat reports that Brunei is not a signatory to the WTO Government Procurement Agreement. Further Para 56 mentions that Brunei the Bruneian authorities state that further study is needed before the Government can make a decision. There is no specific legislation pertaining to competition policy. We would appreciate if Brunei could indicate as to by when the

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study would be initiated and completed and does Brunei plans to join the GPA as an observer. We would appreciate detail of plans of Brunei on introducing a Competition policy. Answer: On the GPA: Please refer to the answer to Question 29 from the EC. On Competition policy: Please refer to the answer to Questions 12 and 13 from the EC. 11. Para 4 of the Secretariat reports that through successive development plans, the Government has sought to diversify Brunei's economy and create sustainable employment in the non-oil private sector and Brunei's economy has become even more heavily dependent on the oil and gas sector. We would appreciate to be informed of the constraints faced by Brunei in meeting its planned development goals? Answer: The new Brunei Darussalam Long-Term Development Plan has identified several challenges faced by Brunei Darussalam in meeting its development goals. The Government will work with all the stakeholders to ensure the strategies, policy directions and projects are implemented effectively and efficiently. Brunei Darussalam would also like to refer India to Box I.1 of page 9 of the WTO Secretariat report. 12. Para 20 of the Secretariat report comments that the small domestic market, a poorly developed local private sector, high wage costs, a shortage of skilled labour, slow bureaucratic procedures and a lack of transparency, and the ban on foreigners owning land have all deterred foreign capital and technology from non-oil and gas industries in Brunei. What are the Brunei’s plans to address each of the foregoing issues to seek a balanced and sustainable economic and social growth? Answer: Please refer to the answer to Question 4. 13. Further, Para 42 of the Secretariat report states that a key, internal, long-term risk continues to be the slow pace of the Government's diversification programme. Implementation of the privatization plan, which has been ongoing for a decade or more, appears to have been slowed by concern about the effect of privatization on government revenue and prices. How does government propose to resolve this situation? Answer: Brunei Darussalam has a national committee, the Jawatankuasa Khas Penswastaan, aimed at strengthening the private sector, and beside this, the tender document for the Privatization Master Plan has also been prepared, under Brunei Darussalam’s Long Term Development Plan (i.e. under the National Development Plan 2007-2012), which will address the related issues mentioned. 14. Currently, Halal meat and poultry can be imported only from Malaysia and Australia. Brunei imports live cattle from its state-owned cattle farm located in Northern Australia for slaughter at local abattoirs (Para 46 of Secretariat report refers). We would appreciate if Brunei could kindly explain

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the rationale of this restrictive import sourcing policy and by when it proposes to open it to other interested exporting members? Answer: Brunei Darussalam would like to clarify that importation of Halal meat and poultry is not restricted to imports from Malaysia and Australia. In fact, Brunei Darussalam also imports Halal meat from India (Frigorifico Allana Ltd and Al Kabeer Pvt Ltd). Brunei Darussalam does not restrict importation of Halal meat by place of origin but rather on whether or not they are certified by the Board issuing import permits under the Halal Meat Act. As such, Brunei Darussalam is open to imports of Halal meat and poultry from all interested exporting members. 15. On Page 68 the Secretariat reports that Farming has become a part-time business for most rural families, owing to the availability of more lucrative forms of employment. However, in the subsequent section it reports that the Government policy is to reduce Brunei's dependence on food imports and to attain greater self-sufficiency in agriculture. We would be pleased to be informed of steps the Government proposes to take to make the farming lucrative employment and in seeking self-sufficiency in this sector. Answer: Due to the small land area available for farming, the Government recognises that full self-sufficiency will be a challenge to achieve. Accordingly, the Government targets self sufficiency in selected agricultural products only, subject to capacity to produce coupled with the availability of new technologies and innovations in farming practice. Current statistics revealed that Brunei achieved 100 per cent self-sufficiency in egg production, while broiler recorded 94 per cent self- sufficiency. BRAZIL WT/TPR/G/196 paragraphs 75 and 77 1. According to the Government Report, "the Government continues to place a great emphasis on the need for greater participation by the economic sector to contribute towards the diversification of the economy". It also affirms that "the Government is also still interested in attracting investment to develop the oil and gas sectors". How the development of new policies to attract investments in the oil and gas sectors can be reconciled with the Government's plans to diversify Brunei's economy? Answer: Brunei Darussalam recognizes the importance of diversifying the economy away from the crude oil and natural gas sectors, however Brunei Darussalam also realizes the benefit it can get from further utilizing its comparative advantage in the energy sector. Therefore, to reconcile both these needs, Brunei Darussalam has begun undertaking to develop downstream activities in the oil and gas sectors. The development of the Sungai Liang Industrial Park (SPARK) as an authority and a one stop centre to facilitate establishment and operations of FDI in the park indicates one major move by Brunei towards widening its economic base for future generations. Under SPARK, the construction of the USD350 million methanol plant is currently underway and will start production by 2010. The methanol derivatives are also expected to provide

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more business and employment opportunities to the local SMEs. The multi-billion deep water Pulau Muara Besar (PMB) port project is also expected to generate similar opportunities. Furthermore, Brunei Darussalam has identified 5 other economic clusters – 1) Tourism and Hospitality, 2) Halal Food, 3) Transport and Logistics, 4) Business and Financial Services and 5) Info-Communication Technology (ICT) – which it believes can complement and mutually support the development of its downstream industries. In the Brunei Darussalam Long-Term Development Plan, the Government has identified several policy directions and programmes that will be implemented under the Economic, Institutional Development, Local Business Development, as well as Infrastructure Development strategies will further help to achieve economic diversification. WT/TPR/S/196 paragraph 27 2. The Secretariat Report observes that "the lack of reliable and timely data (...), as well as scant or non-existent information about the progress made under latest national development plan, highlight the general lack of transparency, and thus public accountability, in the management of the economy". What has the Government been doing to tackle such a lack of transparency and public accountability? Answer: Please refer to the answer to Questions 1(a) and 2 from Canada. WT/TPR/S/196 Chapter II (3) (ii)(d) paragraphs 37 and 38 3. The Secretariat Report mentions the Trans-Pacific Strategic Economic Partnership Agreement (Trans-Pacific SEP), between Brunei, Chile, New Zealand and Singapore. What is the assessment of the country’s authorities on the impact of such an Agreement? Answer: The TPSEP Agreement (P4) has provided Brunei Darussalam with increased market access to the other P4 countries, in particular to New Zealand and Chile, in goods, services and investment. At the same time, due to Chile’s participation in the Agreement, Brunei Darussalam now has a platform to access the rest of South America. Brunei’s participation in the P4 has also resulted in additional commitments for increased cooperation in the areas of Environment and Labour, Government Procurement as well as Competition Policy. Perhaps one of the key effects from Brunei’s participation in a dynamic initiative such as the P4, is the elevation of our profile as an economy that is willing to be at the forefront of regional integration. The interest generated by this initiative has provided an impetus to Brunei’s efforts in enhancing our attractiveness and competitiveness as an investment destination.

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WT/TPR/M/196/Add.1 10 April 2008 - WTO Documents Online

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Transcript of WT/TPR/M/196/Add.1 10 April 2008 - WTO Documents Online