Singapore-Australia Free Trade Agreement (SAFTA) - a business guide
Chapter 10: Problem resolution and reviews
Dispute settlement
SAFTA provides a dispute resolution mechanism that is intended to support the overall functioning of the agreement, on the basis of efficiency, simplicity, timeliness and fairness. The focus is on resolution of disputes through consultation. However, where consultations fail, Australia or Singapore may request the appointment of an arbitral tribunal, which will determine whether a measure of one party is inconsistent with a SAFTA provision and, if so, recommend that the relevant party bring the measure into conformity with that provision. The arbitral tribunal’s recommendations must be implemented within a reasonable period as agreed between the two countries. Non-compliance may result in compensatory adjustments and suspension of benefits.
In relation to state–state dispute settlement, it should be noted that governments, and not individuals, lodge dispute claims, and that this is done as a last resort when full efforts to resolve the disputes informally have been exhausted. Moreover, some aspects of SAFTA explicitly limit the scope as well as the timing for use of dispute settlement provisions to address, for example, a refusal to grant temporary entry or concerns relating to domestic legal frameworks governing electronic transactions, authentication and signatures.
SAFTA also provides a mechanism to resolve disputes between a party and an investor of the other party (investor-state disuputes), under the chapter on investment. An investor of one party may seek to settle disputes with the other party where the investor believes that the party is not complying with its obligations under the investment chapter of SAFTA. The focus of these dispute settlement provisions of SAFTA is on resolving disputes through consultation and negotiation. If resolution does not occur within six months, either Singapore or Australia may refer the dispute to one of the following three forums: the courts or administrative tribunals of the disputing party; the International Centre for Settlement of Investment Disputes (ICSID) for conciliation or arbitration; or arbitration under the rules of the United Nations Commission on International Trade Law (UNCITRAL).
If you have any problems in doing business with Singapore, you should contact us in the first instance. The Department of Foreign Affairs and Trade, through the Australian High Commission in Singapore, can assist with opening the door for Australian companies to Singapore government bodies and decision-makers. In addition to the two main contact points provided below, the department has offices located in all Australian capital cities. Their contact numbers are listed at Annex V.
In Central Office in Canberra:
Executive Officer (Singapore)
Philippines, Malaysia, Singapore, Brunei Section
Maritime South-East Asia Branch
The Australian Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent
Barton ACT 0221
Tel: (02) 6261 3738
Fax: (02) 6261 1743
In Singapore:
Deputy High Commissioner
Australian High Commission
PO Box 470, Tanglin
Singapore 912416
Tel: (65) 6836 4224
Fax: (65) 6733 7134
Reviews
SAFTA includes a review provision. The first review is expected to take place in mid-2004. Subsequent reviews will be held biennially.
The first review will consider the implementation and outcome of SAFTA to date, and explore where there may be scope for enhancing the agreement. It will also examine ways to incorporate additional benefits from the US–Singapore Free Trade Agreement (USSFTA) into the body of SAFTA. These benefits relate to improved conditions for legal joint ventures and wholesale bank licences.
Table of contents - Singapore-Australia Free Trade Agreement (SAFTA) - a business guide