PART D: Monopolies and Government Enterprises – Commercial Activity

Article 314: Scope and Coverage

1. Except for Article 309 and Article 704 (Residency Requirements), only the obligations in this Part apply to monopolies and government enterprises when undertaking commercial activities.
2. For greater certainty, “commercial activities” includes procurement by a monopoly or government enterprise only if the good or service is not purchased for governmental purposes and is purchased with a view to commercial sale or resale or with a view to use in the supply or production of a good or service for commercial sale or resale.
3. Nothing in paragraphs 1 or 2 shall be construed to limit the application of Chapter Five (Government Procurement) to covered procurement by a monopoly or government enterprise.

Article 315: Right to Maintain, Establish, or Authorize Monopolies and Government Enterprises

Without prejudice to the Parties’ rights and obligations under this Agreement, nothing in this Part prevents a Party from maintaining, establishing, or authorizing monopolies and government enterprises in its territory or expanding the scope of a monopoly to cover an additional good or service.

Article 316: Non-Discrimination

Each Party shall ensure that in its territory its monopolies, in their purchase or sale of any good or service, accord non-discriminatory treatment to:

1. an investment of an investor of any other Party;
2. a good of any other Party; or
3. a service supplier of any other Party.

Article 317: Commercial Consideration

Each Party shall ensure that its monopolies and government enterprises act solely in accordance with commercial considerations in its territory:

1. in their treatment of an investment of an investor of any other Party; or
2. when purchasing, selling, or supplying goods or services to or from any other Party, including when these goods or services are supplied to or by an investment of an investor of any other Party,

except to fulfill the purpose for which the monopoly or government enterprise has been created.

Article 318: Exceptions

Article 316 and Article 317 do not apply to any measure adopted or maintained by a Party’s monopoly or government enterprise if a Party-specific exception taken against Article 201 (Non-Discrimination) or paragraph 2 of Annex 309, as set out in the Party’s Schedules to Part VII (Party Schedules), would apply had the same measure been adopted or maintained by that Party.