TIPAT (Trans-Pacific Partnership Progressive Integration Treaty) was signed on March 8, 2018 by 11 countries and entered into force on December 30, 2018 for Mexico, Japan, Singapore, New Zealand, Canada and Australia. Subsequently, on January 14, 2019 for Vietnam. Ratification by Brunei, Chile, Malaysia and Peru is awaited.
Its text consists of thirty chapters covering tariffs on goods and services, intellectual property rights, labor and environmental standards, dispute settlement mechanisms and many other aspects of global trade. This ambitious agreement covers about 40% of world trade. This is a pioneering treatise that contemplates new technologies such as digital platforms and telecommunications.
The most logical thing would be to think that since they are more related to a service, they will always be exempt from tariffs.
Non-discriminatory treatment for digital products:
This section provides that no platform created in the territory of another State Party shall be treated differently from platforms created in the territory it intends to enter.
Transfer of cross-border information by electronic means:
Each State Party shall permit cross-border transfer by electronic means, including personal information, where the activity is relevant to the business or individual concerned.
Positioning of Computing Facilities
There can be no obligation to place computing facilities in the territory of a State Party as a condition for operating in its territory.
Source Code:
No Party shall require the transfer or access to the source code of software owned by a person of another Party as a condition for the importation, distribution, sale or use of such software.
Some of the aspects that you should keep in mind when considering your expansion to any of the States party to this treaty are:
Online protection for customers:
Fraudulent actions in accordance with local law.
Protection of Personal Information:
Each party shall adopt or maintain a legal framework that provides protection for the personal information of e-commerce users.
Thus, the legislation on this subject will be evaluated individually when entering a State Party to the Treaty.
Unsolicited Commercial Messages:
Digital platforms must have the consent of Internet users before they can send them messages.
You must keep in mind that there may be non-conforming measures in the articles of the treaty. In other words, there are cases in which the State parties express from the negotiations that they will not be subject to certain parts of the treaty.
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