Common use of National Treatment and Most Favoured Nation Clause in Contracts

National Treatment and Most Favoured Nation. 1. In all matters relating to the treatment of investments, the investors of each Contracting Party shall enjoy national treatment and most-favoured-nation treatment in the territory of the other Contracting Party. 2. Each Contracting Party may, in accordance with its laws and regulations, grant incentives, treatment, preferences or privileges through special policies or measures to its nationals only for the purpose of promoting small and medium-sized enterprises and infant industries, persons or areas in its territory subject to the condition that these shall not significantly affect the investments and activities of the investors of one of the other Contracting Party. 3. With respect to the operation, management, maintenance, use, enjoyment and sale or other disposal of investments, each Contracting Party shall accord, on Its territory, to investors of the other Contracting Party, treatment no less favourable than that granted to its own investors or to investors of any other State if the latter is more favourable. 4. This treatment shall not include foe privileges granted by one Contracting Party to investors of a third State by virtue of its participation or association in a free trade 2 one, customs union, common market or any other form of regional economic organisation. 5. The provisions of this Article do not apply to tax matters.