Common use of Investment Protection Clause in Contracts

Investment Protection. 1. Each Contracting Party shall ensure in its territory fair and equitable treatment to investments and returns of investors of the other Contracting Party in respect of the ownership, use and disposal of such investments and returns. 2. According to paragraph 1 of this Article, it should be not less favorable than that accorded to the investments its own investors or investments of investors of any third state, depending on which of them, in view of the investor, is more favorable. 3. Each Contracting Party reserves the right to apply and to introduce, in accordance with its legislation exceptions to the national treatment to foreign investors and their investments, including reinvested capital. 4. The provisions of paragraphs 1 and 2 of this article with respect to should not MFN construed so as to oblige one Contracting Party to extend to investments of investors of the other Contracting Party the benefit of any treatment, preference or privilege which may be granted to the former Contracting Party: a) in connection with its participation in a free trade area, customs union, monetary union, common market or any similar economic integration entities or any international agreements, leading to the creation of such associations or unions; b) on the basis of any international agreement or arrangement relating wholly or in part to taxation issues. 5. Without prejudice to the provisions of Articles 5, 6 and 9 of this Agreement, the Contracting Parties are not obliged to provide in accordance with this Agreement, the more favorable treatment than that accorded by each Contracting Party in accordance with the Agreement Establishing the World Trade Organization (WTO) of 15 April 1994, including the commitments to the General agreement on trade in services (GATS), as well as in accordance with any other multilateral agreement relating to investment regime, which members of both Contracting Parties.