Common use of Performance Requirements Clause in Contracts

Performance Requirements. 1. Neither Party may impose or enforce any requirement, or enforce any commitment or undertaking4, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party: (a) to export a given level or percentage of goods or services; (b) to achieve a given level or percentage of domestic content; (c) to purchase, use, or accord a preference to goods produced or services provided in its territory, or to purchase goods or services from persons in its territory; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment; (e) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology5, a production process, or other proprietary knowledge to a person in its territory; or 4 For greater certainty, a condition for the receipt or continued receipt of an advantage referred to in paragraph 3 shall not constitute a "commitment or undertaking" for purposes of paragraph 1. 5 For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, from imposing or enforcing a requirement or enforcing a commitment or undertaking to train workers in its territory, provided that such training does not require the transfer of a particular technology, a production process, or other proprietary knowledge to a person in its territory. (g) to supply exclusively from the territory of the Party the goods that such investment produces or the services that such investment provides to a specific regional market or to the world market. 2. A measure that requires an investment to use a technology to meet generally applicable health, safety, or environmental requirements shall not be construed to be inconsistent with paragraph 1(f). For greater certainty, Articles 9.3 and 9.4 apply to the measure. 3. Neither Party may condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance with any of the following requirements: (a) to achieve a given level or percentage of domestic content; (b) to purchase, use, or accord a preference to goods produced in its territory, or to purchase goods from persons in its territory; (c) to relate in any way the volume or value of imports to the volume or value of exports or to the (a) Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non- Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. (b) Paragraph 1(f) does not apply where: (i) a Party authorizes use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, and to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or (ii) the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, or competition authority, to remedy an alleged violation of competition laws or to act in a manner not inconsistent with other provisions of this Agreement.6 (c) Provided that such measures are not applied in an arbitrary, discriminatory, or unjustifiable manner, and provided that such measures do not constitute a disguised restriction on international trade or investment, paragraphs 1(b), (c), and (f), and 3(a) and (b), shall not be construed to prevent a Party from adopting or maintaining measures, including environmental measures: (i) necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement; (ii) necessary to protect human, animal, or plant life or health; or (iii) necessary to the conservation of living or non-living exhaustible natural resources.

Performance Requirements. 1. Neither A Party may not impose or enforce any requirementthe following requirements, or enforce any a commitment or undertaking4undertaking, in connection with the establishment, acquisition, expansion, management, conduct, operation, conduct or sale or other disposition operation of an investment in its territory of an investor of a Party or of a non-Party: Party in its territory: (a) to export a given level or percentage of goods a good or services; service; (b) to achieve a given level or percentage of domestic content; ; (c) to purchase, use, use or accord a preference to goods a good produced or services service provided in its territory, or to purchase goods a good or services service from persons a person in its territory; ; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such that investment; ; (e) to restrict sales of goods a good or services service in its territory that such the investment produces or provides by providesby relating such those sales in any way to the volume or value of its exports or foreign exchange earnings; ; (f) to transfer technology5technology, a production process, process or other proprietary knowledge to a person in its territory; or 4 For greater certainty, a condition for the receipt or continued receipt of an advantage referred to in paragraph 3 shall not constitute a "commitment or undertaking" for purposes of paragraph 1. 5 For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, from imposing or enforcing a requirement or enforcing a commitment or undertaking to train workers in its territory, provided that such training does not require the transfer of a particular technology, a production process, or other proprietary knowledge to a person in its territory. or (g) to supply exclusively from the territory of the Party a good that the goods that such investment produces or the services that such investment a service it provides to a specific regional market or to the world market. 2. A measure that requires an investment to use a technology to meet generally applicable health, safety, safety or environmental requirements shall is not be construed to be inconsistent with paragraph subparagraph 1(f). For greater certainty, Articles 9.3 and 9.4 apply to the measure. 3. Neither A Party may not condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance with any of the following requirements: : (a) to achieve a given level or percentage of domestic content; ; (b) to purchase, use, use or accord a preference to goods a good produced in its territory, or to purchase goods a good from persons a producer in its territory; ; (c) to relate in any way the volume or value of imports to the volume or value of exports or to thethe amount of foreign exchange inflows associated with that investment; or (d) to restrict sales of a good or service in its territory that the investment produces or provides by relating those sales to the volume or value of its exports or foreign exchange earnings. (a) Nothing in paragraph Paragraph 3 shall be construed to does not prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non- non-Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. (b) Paragraph Subparagraph 1(f) does not apply where: (i) a Party authorizes use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, and to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or (ii) if the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, tribunal or competition authority, authority to remedy an alleged violation of domestic competition laws or to act in a manner not inconsistent with other provisions of this Agreement.6 (c) Provided that such measures are not applied in an arbitrary, discriminatory, or unjustifiable manner, law. 5. Paragraphs 1 and provided that such measures 3 do not constitute apply to a disguised restriction on international trade or investment, paragraphs 1(brequirement other than the requirements set out in those paragraphs. 6. The provisions of: (a) subparagraphs 1(a), (c), b) and (fc), and 3(a) and (b), shall do not be construed apply to prevent a qualification requirement for a good or service with respect to export promotion and foreign aid programs; (b) subparagraphs 1(b), (c), (f) and (g), and 3(a) and (b), do not apply to procurement by a Party from adopting or maintaining measures, including environmental measures: a State enterprise; and (ic) subparagraphs 3(a) and (b) do not apply to a requirement imposed by an importing Party relating to the content of a good necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement; (ii) necessary to protect human, animal, qualify for a preferential tariff or plant life or health; or (iii) necessary to the conservation of living or non-living exhaustible natural resourcespreferential quota.

Performance Requirements. 1. Neither A Contracting Party may not impose or enforce any requirementthe following requirements, or enforce any a commitment or undertaking4undertaking, in connection with the establishment, acquisition, expansion, management, conduct, operation, conduct or sale or other disposition operation of an investment in its territory of an investor of a Contracting Party or of a non-Party: Party in its territory: (a) to export a given level or percentage of goods a good or services; service; (b) to achieve a given level or percentage of domestic content; ; (c) to purchase, use, use or accord a preference to goods a good produced or services service provided in its territory, or to purchase goods a good or services service from persons a person in its territory; ; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such that investment; ; (e) to restrict sales of goods a good or services service in its territory that such the investment produces or provides by relating such those sales in any way to the volume or value of its exports or foreign exchange earnings; ; (f) to transfer technology5technology, a production process, process or other proprietary knowledge to a person in its territory; or 4 For greater certainty, a condition for the receipt or continued receipt of an advantage referred to in paragraph 3 shall not constitute a "commitment or undertaking" for purposes of paragraph 1. 5 For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, from imposing or enforcing a requirement or enforcing a commitment or undertaking to train workers in its territory, provided that such training does not require the transfer of a particular technology, a production process, or other proprietary knowledge to a person in its territory. or (g) to supply exclusively from its territory a good that the territory of the Party the goods that such investment produces or the services that such investment a service it provides to a specific regional market or to the world market. 2. A measure that requires an investment to use a technology to meet generally applicable health, safety, safety or environmental requirements shall is not be construed to be inconsistent with paragraph subparagraph 1(f). For greater certainty, Articles 9.3 and 9.4 apply to the measure. 3. Neither A Contracting Party may not condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Contracting Party or of a non-Party, on compliance with any of the following requirements: : (a) to achieve a given level or percentage of domestic content; ; (b) to purchase, use, use or accord a preference to goods a good produced in its territory, or to purchase goods a good from persons a producer in its territory; ; (c) to relate in any way the volume or value of imports to the volume or value of exports or to thethe amount of foreign exchange inflows associated with that investment; or (d) to restrict sales of a good or service in its territory that the investment produces or provides by relating those sales to the volume or value of its exports or foreign exchange earnings. (a) Nothing in paragraph Paragraph 3 shall be construed to does not prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Contracting Party or of a non- non Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. (b) Paragraph Subparagraph 1(f) does not apply where: (i) a Party authorizes use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, and to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or (ii) if the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, tribunal or competition authority, authority to remedy an alleged violation of domestic competition laws or to act in a manner not inconsistent with other provisions of this Agreement.6 (c) Provided that such measures are not applied in an arbitrary, discriminatory, or unjustifiable manner, law. 5. Paragraphs 1 and provided that such measures 3 do not constitute apply to a disguised restriction on international trade or investment, paragraphs 1(brequirement other than the requirements set out in those paragraphs. 6. The provisions of: (a) subparagraphs 1(a), (c), b) and (fc), and 3(a) and (b), shall do not be construed apply to prevent a qualification requirement for a good or service with respect to export promotion and foreign aid programs; (b) subparagraphs 1(b), (c), (f) and (g), and 3(a) and (b), do not apply to procurement by a Contracting Party from adopting or maintaining measures, including environmental measures: a State enterprise; and (ic) subparagraphs 3(a) and (b) do not apply to a requirement imposed by an importing Contracting Party relating to the content of a good necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement; (ii) necessary to protect human, animal, qualify for a preferential tariff or plant life or health; or (iii) necessary to the conservation of living or non-living exhaustible natural resourcespreferential quota.

Performance Requirements. 1. Neither Party may impose or enforce any requirement, or enforce any commitment or undertaking4, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party: (a) to export a given level or percentage of goods or services; (b) to achieve a given level or percentage of domestic content; (c) to purchase, use, or accord a preference to goods produced or services provided in its territory, or to purchase goods or services from persons in its territory; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment; (e) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology5, a production process, or other proprietary knowledge to a person in its territory; or 4 For greater certainty, a condition for the receipt or continued receipt of an advantage referred to in paragraph 3 shall not constitute a "commitment or undertaking" for purposes of paragraph 1. 5 For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, from imposing or enforcing a requirement or enforcing a commitment or undertaking to train workers in its territory, provided that such training does not require the transfer of a particular technology, a production process, or other proprietary knowledge to a person in its territory. (g) to supply exclusively from the territory of the Party the goods that such investment produces or the services that such investment provides to a specific regional market or to the world market. . 2. A measure that requires an investment to use a technology to meet generally applicable health, safety, or environmental requirements shall not be construed to be inconsistent with paragraph 1(f). For greater certainty, Articles 9.3 and 9.4 apply to the measure. . 3. Neither Party may condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance with any of the following requirements: (a) to achieve a given level or percentage of domestic content; (b) to purchase, use, or accord a preference to goods produced in its territory, or to purchase goods from persons in its territory; (c) to relate in any way the volume or value of imports to the volume or value of exports or to the (a) Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non- Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. (b) Paragraph 1(f) does not apply where: (i) a Party authorizes use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, and to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or (ii) the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, or competition authority, to remedy an alleged violation of competition laws or to act in a manner not inconsistent with other provisions of this Agreement.6 (c) Provided that such measures are not applied in an arbitrary, discriminatory, or unjustifiable manner, and provided that such measures do not constitute a disguised restriction on international trade or investment, paragraphs 1(b), (c), and (f), and 3(a) and (b), shall not be construed to prevent a Party from adopting or maintaining measures, including environmental measures: (i) necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement; (ii) necessary to protect human, animal, or plant life or health; or (iii) necessary to the conservation of living or non-living exhaustible natural resources.