First, In CPTPP, Annex I and II, each CPTPP member state has some non-conforming measures that allow governments to maintain exceptions to the CPTPP services and investment chapters, transparently identifying measures, activities, or sectors where the chapters' obligations do not apply. As a result, you should pay close attention to the reservations mentioned. As an example: according to Annex II, Section 2 (Cross-Border Trade in Services and Investment), Singarpore reserves the right to maintain or adopt any measure affecting: “(a) the full or partial devolvement to the private sector of services provided in the exercise of governmental authority; (b) the divestment of its equity interests in, and/or the assets of, an enterprise that is wholly owned by the Singapore government; etc. ”
Second, lack of ISDS experience: Japanese companies are hesitant to use arbitration, whether commercial or investment-related. So far, only three publicly known investor-state arbitration cases have been initiated by Japanese investors. As of today, all of the proceedings are still pending.
Third, under pandemic, Australia, and Malaysia apply FDI restriction in some certain sectors but still 100% FDI friendly for manufacturing and most of the service industries. Especially, New Zealand government has introduced a temporary notification regime and announced that national interest test will temporarily apply to all foreign investments, regardless of dollar value, that result in more than a 25% ownership interest, or that increase an existing stake in a New Zealand asset to, or beyond, 50%, 75% or 100%. Once the temporary measures end, the minimum threshold for the national interest test will apply to transactions of $100 million or more (or higher if set by a trade agreement), as well as investments in sensitive land or fishing quota.
First
, In
CPTPP
, Annex I and II, each
CPTPP
member state has
some
non-conforming
measures
that
allow
governments
to maintain exceptions to the
CPTPP
services
and
investment
chapters,
transparently
identifying
measures
, activities, or sectors where the chapters' obligations do not
apply
.
As a result
, you should pay close attention to the reservations mentioned. As an example: according to Annex II, Section 2 (Cross-Border Trade in
Services
and
Investment)
,
Singarpore
reserves the right to maintain or adopt any
measure
affecting: “(a) the full or partial
devolvement
to the private sector of
services
provided in the exercise of governmental authority; (b) the divestment of its equity
interests
in, and/or the assets of, an enterprise
that is
wholly
owned
by the Singapore
government
; etc.
”
Second, lack of
ISDS
experience: Japanese
companies
are hesitant to
use
arbitration, whether commercial or investment-related.
So
far,
only
three
publicly
known investor-state arbitration cases have
been initiated
by Japanese investors. As of
today
,
all of the
proceedings are
still
pending.
Third, under pandemic, Australia, and Malaysia
apply
FDI restriction in
some
certain sectors
but
still
100% FDI friendly for manufacturing and most of the
service
industries.
Especially
, New Zealand
government
has introduced a temporary notification regime and announced that national
interest
test
will
temporarily
apply
to all foreign
investments
, regardless of dollar value, that result in more than a 25% ownership
interest
, or that increase an existing stake in a New Zealand asset to, or beyond, 50%, 75% or 100%. Once the temporary
measures
end
, the minimum threshold for the national
interest
test
will
apply
to transactions of $100 million or more (or higher if set by a trade agreement),
as well
as
investments
in sensitive land or fishing quota.