Common use of Prohibition of Performance Requirements Clause in Contracts

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area: (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 Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (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 investments of the investor; (e) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards of directors, individuals of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area; Note: The requirement prohibited under this Subparagraph, irrespective of its objectives or effects, shall be deemed to include any requirement, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the investor offer or accept the following: (i) a rate or amount of royalty under a Licence contract below a certain level; or (ii) a given range of period as the term of a licence contract, In regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity in its Area. A "licence contract" referred to in this note means any licence contract concerning transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, a "licence contract" does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in subparagraph (a) (vii) of Article 1. (i) to locate the headquarters of the investor for a specific region or the world market in its Area; (j) to achieve a given level or value of research and development in its Area; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its Area. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area, 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 or services provided in its Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (c) 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 investments of the investor; (d) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply when: (i) 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 (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "the TRIPS Agreement"). (c) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area: (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 Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (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 investments of the that investor; (e) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards of directors, individuals of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area; Note: The requirement prohibited under this Subparagraph, irrespective of its objectives or effects, shall be deemed to include any requirement, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the investor offer or accept the following: (i) a rate or amount of royalty under a Licence contract below a certain level; or (ii) a given range of period as the term of a licence contract, In regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity in its Area. A "licence contract" referred to in this note means any licence contract concerning transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, a "licence contract" does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in subparagraph (a) (vii) of Article 1. (i) to locate the headquarters of the investor for a specific region or the world market in its Area; (j) to achieve a given level or value of research and development in its Area; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its Area. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area, 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 or services provided in its Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (c) 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 investments of the investor; (d) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply except when: (i) 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 (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "“the TRIPS Agreement"”). (c) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.;

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its AreaTerritory: (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 AreaTerritory, or to purchase goods or services from a natural person or legal persons or any other entity an enterprise in its AreaTerritory; (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 investments an investment of the investor; (e) to restrict sales of goods or services in its Area Territory that investments an investment of the investor produce produces or provide provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards board of directors, individuals natural persons of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area; Note: The requirement prohibited under this Subparagraph, irrespective of its objectives or effects, shall be deemed to include any requirement, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the investor offer or accept the followingadopt: (i) a given rate or amount of royalty under a Licence contract below a certain levellicence contract; or (ii) a given range duration of period as the term of a licence contract, In in regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity an enterprise in its Area. Territory, whether it has been entered into or not, provided that the requirement is imposed or the commitment or undertaking is enforced by an exercise of governmental authority of the Contracting Party; Note: A "“licence contract" ” referred to in this note subparagraph means any licence contract concerning transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, a "licence contract" does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in subparagraph (a) (vii) of Article 1. (i) to locate the headquarters of the investor for a specific region or the world market in its AreaTerritory; (j) to achieve hire a given level number or value percentage of research and development in its Areanationals; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its AreaTerritory. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its AreaTerritory, 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 or services provided in its AreaTerritory, or to purchase goods from a natural person or services from natural or legal persons or any other entity an enterprise in its AreaTerritory; (c) 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 investments an investment of the investor; (d) to restrict sales of goods or services in its Area Territory that investments an investment of the investor produce produces or provide provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply when: (i) when the requirement is imposed or the commitment or undertaking is enforced by a courtcourt of justice, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "the TRIPS Agreement"). (cb) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its AreaTerritory: (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 AreaTerritory, or to purchase goods or services from a natural person or legal persons or any other entity an enterprise in its AreaTerritory; (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 investments an investment of the investor; (e) to restrict sales of goods or services in its Area Territory that investments an investment of the investor produce produces or provide provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards board of directors, individuals natural persons of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area; Note: The requirement prohibited under this Subparagraph, irrespective of its objectives or effects, shall be deemed to include any requirement, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the investor offer or accept the followingadopt: (i) a given rate or amount of royalty under a Licence contract below a certain levellicence contract; or (ii) a given range duration of period as the term of a licence contract, In in regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity an enterprise in its Area. Territory, whether it has been entered into or not, provided that the requirement is imposed or the commitment or undertaking is enforced by an exercise of governmental authority of the Contracting Party; Note: A "licence contract" referred to in this note subparagraph means any licence contract concerning transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, a "licence contract" does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in subparagraph (a) (vii) of Article 1. (i) to locate the headquarters of the investor for a specific region or the world market in its AreaTerritory; (j) to achieve hire a given level number or value percentage of research and development in its Areanationals; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its AreaTerritory. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its AreaTerritory, 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 or services provided in its AreaTerritory, or to purchase goods from a natural person or services from natural or legal persons or any other entity an enterprise in its AreaTerritory; (c) 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 investments an investment of the investor; (d) to restrict sales of goods or services in its Area Territory that investments an investment of the investor produce produces or provide provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply when: (i) when the requirement is imposed or the commitment or undertaking is enforced by a courtcourt of justice, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "the TRIPS Agreement"). (cb) Subparagraphs 2(a2{a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area: (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 Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (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 investments of the investor; (e) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards of directors, individuals of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area; Note: The requirement prohibited under this Subparagraphsubparagraph, irrespective of its objectives or effects, shall be deemed to include any requirement, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the investor offer or accept the following: (i) a rate or amount of royalty under a Licence licence contract below a certain level; or (ii) a given range of period as the term of a licence contract, In in regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity in its Area. A "“licence contract" ” referred to in this note means any licence contract concerning transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, a "“licence contract" ” does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in subparagraph subparagraph (a) (viia)(vii) of Article 1. (i) to locate the headquarters of the investor for a specific region or the world market in its Area; (j) to achieve a given level or value of research and development in its Area; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its Area. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area, 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 or services provided in its Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (c) 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 investments of the investor; (d) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting non- Contracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply when: (i) 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 (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "“the TRIPS Agreement"”). (c) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.

Prohibition of Performance Requirements. 1. Neither Contracting Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area: (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 Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (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 investments of the that investor; (e) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to restrict the exportation or sale for export; (g) to appoint, as executives, managers or members of boards of directors, individuals of any particular nationality; (h) to transfer technology, a production process or other proprietary knowledge to a natural or legal person or any other entity in its Area, except when: (i) 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 (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "the TRIPS Agreement"); Note: The requirement prohibited under this Subparagraph, irrespective of its objectives or effects, shall be deemed to include any requirementrequirement by a Contracting Party, either explicit or implicit, by a Contracting Party, regardless of whether or not transfer of technology, a production process or other proprietary knowledge is imposed or enforced by that Contracting Party, that the an investor offer or accept the followingaccept: (i) a rate or amount of royalty under a Licence contract below a certain level; or (ii) a given range of period as the term of a licence contract, In regard to any licence contract freely entered into between the investor and a natural or legal person or any other entity in its Area. A For greater certainty, a "licence contract" referred to in this note means any licence contract concerning the transfer of technology, a production process, or other proprietary knowledge. For the avoidance of doubt, including where such transfer is not subject to a "licence contract" does not include licences for the exploration, prospect, exploitation and extraction of natural resources referred to in requirement prohibited under this subparagraph (a) (vii) of Article 1. (i) to locate the headquarters of the that investor for a specific region or the world market in its Area; (j) to achieve a given level or value of research and development in its Area; or (k) to supply one or more of the goods that the investor produces or the services that the investor provides to a specific region or the world market, exclusively from its Areathe Area of the former Contracting Party. 2. Neither Contracting Party may condition the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a non-Contracting Party in its Area, 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 or services provided in its Area, or to purchase goods or services from natural or legal persons or any other entity in its Area; (c) 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 investments of the that investor; (d) to restrict sales of goods or services in its Area that investments of the investor produce or provide by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) to restrict the exportation or sale for export. (a) Nothing in paragraph 2 shall be construed to Prevent a Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities of an investor of a Contracting Party or of a nonContracting Party in its Area, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its Area. (b) Subparagraph 1(h) shall not apply when: (i) 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 (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement (hereinafter referred to as "the TRIPS Agreement"). (c) Subparagraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Contracting Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. (c) Nothing in this Agreement shall be construed to derogate from the obligations of a Contracting Party under the Agreement on Trade-Related Investment Measures in Annex 1A to the WTO Agreement. 4. Paragraphs 1 and 2 shall not apply to any requirement other than the requirements set out in those paragraphs.