Common use of Prohibition of Performance Requirements Clause in Contracts

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, any of the following requirements: (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 that investor; (e) to restrict sales of goods or services in its Area that investments of that 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 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 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; (h) to locate the headquarters of that investor for a specific region or the world market in its Area; (i) to hire a given number or percentage of its nationals; (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 the Area of the former Contracting Party. 2. Paragraph 1 does not preclude either Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Party, on compliance with any of the requirements set forth in subparagraphs 1 (g) through (k).

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, any of the following requirements: (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 that investor; (e) to restrict sales of goods or services in its Area that investments of that 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 appoint, as executives, managers or sale for exportmembers of boards of directors, individuals of any particular nationality; (g) 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: when the requirement (i) the requirement is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or 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”); (h) to locate the headquarters of that investor for a specific region or the world market in its Area; (i) to hire a given number or percentage of its nationals; (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 the Area of the former Contracting Party. 2. Paragraph The provisions of paragraph 1 does above do not preclude either Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Party, on compliance with any of the requirements set forth in subparagraphs paragraph 1 (g) through (k)) above.

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, any of the following requirements: (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 that investor; (e) to restrict sales of goods or services in its Area that investments of that 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 whenwhen the requirement: (i1) the requirement is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii2) 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”); (hi) to locate the headquarters of that investor for a specific region or the world market in its Area; (ij) to hire a given number or percentage of its nationals; (jk) to achieve a given level or value of research and development in its Area; or (kl) 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 the Area of the former Contracting Party. 2. Paragraph 1 does not preclude either Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Party, on compliance with any of the requirements set forth in subparagraphs 1 (g1(g) through (kl).

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, any of the following requirements: (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 that investor; (e) to restrict sales of goods or services in its Area that investments of that 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 whenwhen the requirement: (i1) the requirement is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii2) 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"); (hi) to locate the headquarters of that investor for a specific region or the world market in its Area; (ij) to hire a given number or percentage of its nationals; (jk) to achieve a given level or value of research and development in its Area; or (kl) 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 the Area of the former Contracting Party. 2. Paragraph 1 does not preclude either Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Party, on compliance with any of the requirements set forth in subparagraphs 1 (g1(g) through (kl).

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, enforce any of the following requirements: , or enforce any commitment or undertaking, in connection with investment activities of an investor of a Party or of a non-Party in its Area to: (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 an investment of that the investor; ; (e) to restrict sales of goods or services in its Area that investments an investment of that 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 transfer technologyappoint, a production process as executives, managers or other proprietary knowledge to a natural or legal person or members of boards of directors, individuals of any other entity in its Area, except when: (i) the requirement is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition lawsparticular nationality; 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; (h) to locate the headquarters of that investor for a specific region or the world market in its Area; ; (i) to hire a given number or percentage of its nationals; ; (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 the Area of the former Contracting Party. ; or (k) adopt: (i) given rate or amount of royalty under a license contract; or (ii) a given duration of the term of a license contract, with respect to any license contract freely entered into between the investor and a person in its Area, 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 Party. Note: A "license contract" referred to in this subparagraph means any license contract concerning transfer of technology, a production process, or other proprietary knowledge. 2. Paragraph 1 does not preclude either Contracting Neither Party from conditioning shall condition the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Partya Party or of a non-Party in its Area, on compliance with any of the following requirements set forth to: (a) achieve a given level or percentage of domestic content; (b) purchase, use or accord a preference to goods produced or services provided in subparagraphs 1 its Area, or to purchase goods or services from persons in its Area; (gc) through 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 an investment of the investor; (k)d) restrict sales of goods or services in its Area that an investment of the investor produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; or (e) restrict the exportation or sale for export. 3.

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, enforce any of thefollowing requirements as a condition for investment activities the establishment,acquisition, expansion, management, operation, maintenance,use or possession of investments in its Area territory of an investor aninvestor of the other Contracting Party, any of the following requirements: : (a) to export a given level or percentage of goods or services; orservices; (b) to achieve a given level or percentage of domestic ofdomestic content; ; (c) to purchase, purchase or use or accord a preference to goods produced or services provided servicesprovided in its Areathe territory of the former Party, or to orto purchase goods or services from natural or legal orlegal persons or any other entity in its Area; the territory of the formerParty; (d) to relate in any way the volume or value of imports to the volume thevolume or value of exports or to the amount of foreign offoreign exchange inflows associated with investments of that investor; suchinvestments; (e) to restrict sales of goods or services in its Area theterritory of the former Party that investments of that investor suchinvestments produce or provide by relating such sales in any way suchsales to the volume or value of its exports or foreign orforeign exchange earnings; ; (f) to restrict the exportation or sale for export; (g) to transfer technology, a production process or other orother proprietary knowledge to a natural or legal person or any other entity in its Arealegalperson of the former Party, except when: when therequirement: (i) the requirement is imposed or enforced by a court, ,administrative tribunal or competition authority competitionauthority to remedy an alleged violation of competition ofcompetition laws; or or (ii) the requirement concerns the transfer of intellectual property rights which is undertaken in a manner not inconsistent notinconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights PropertyRights in Annex 1C to the WTO Agreement; ; (hg) to locate the its headquarters of that investor for a specific region or regionor the world market in its Area; the territory of theformer Party; (i) to hire a given number or percentage of its nationals; (jh) to achieve a given level or value of research and development anddevelopment in its Area; or the territory of the former Party;or (ki) to supply one or more of the goods that the investor produces itproduces or the services that the investor it provides to a specific aspecific region or outside the world market, territory of theformer Party exclusively from the Area of the territory ofthe former Contracting Party. 2. Paragraph Each Party is not precluded by paragraph 1 does not preclude either Contracting Party from conditioning above fromconditioning the receipt or continued receipt of an advantageanadvantage, in 3. Nothing in connection with investment activities in its Area of an investor this Article shall be construed so as toderogate from the obligations of the other Contracting Party, Parties under theAgreement on compliance with any of Trade Related Investment Measures in Annex 1Ato the requirements set forth in subparagraphs 1 (g) through (k)WTO Agreement.

Prohibition of Performance Requirements. 1. Neither Contracting Party shall impose or enforce, as a condition for investment activities in its Area of an investor of the other Contracting Party, any of the following requirements: (a) to To export a given level or percentage of goods or services; (b) to To achieve a given level or percentage of domestic content; (c) to 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 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 that investor; (e) to To restrict sales of goods or services in its Area that investments of that 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 To restrict the exportation or sale for export; (g) to 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 The requirement is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) the 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; (h) to To locate the headquarters of that investor for a specific region or the world market in its Area; (i) to To hire a given number or percentage of its nationals; (j) to To achieve a given level or value of research and development in its Area; or (k) to 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 the Area of the former Contracting Party. 2. Paragraph 1 does not preclude either Contracting Party from conditioning the receipt or continued receipt of an advantage, in connection with investment activities in its Area of an investor of the other Contracting Party, on compliance with any of the requirements set forth in subparagraphs 1 (g) through (k).