Common use of Exceptions to the chapter Clause in Contracts

Exceptions to the chapter. 1. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not disclosing any information that it considers necessary for the protection of its essential security interests related to the procurement of arms, ammunition, or war materials, or to procurement indispensable for national security or for national defense purposes. 2. Subject to the requirement that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to prevent a Party from adopting or maintaining measures: (a) necessary to protect public morals, order, or safety; (b) necessary to protect human, animal, or plant life or health; (c) necessary to protect intellectual property; or (d) related to goods or services of persons with disabilities, philanthropic institutions, or prison labor. 3. The Parties understand that subparagraph 2(b) includes environmental measures necessary to protect human, animal, or plant life or health.