Common use of Prohibition of Performance Requirements Clause in Contracts

Prohibition of Performance Requirements. 1. Neither Party shall impose or enforce any of the following requirements as a condition for the establishment, acquisition, expansion, management, operation, maintenance, use or possession of investments in its territory of an investor of the other 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 or use goods produced or services provided in the territory of the former Party, or to purchase goods or services from natural or legal persons in the territory of the former Party; (d) to relate the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investments; (e) to restrict sales of goods or services in the territory of the former Party that such investments produce or provide by relating such sales to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology, a production process or other proprietary knowledge to a natural or legal person of the former Party, except when the requirement: (i) is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) concerns the transfer of intellectual property 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; (g) to locate its headquarters for a specific region or the world market in the territory of the former Party; (h) to achieve a given level or value of research and development in the territory of the former Party; or (i) to supply one or more of the goods that it produces or the services that it provides to a specific region outside the territory of the former Party exclusively from the territory of the former Party. 2. Each Party is not precluded by paragraph 1 above from conditioning the receipt or continued receipt of an advantage, in connection with investments in its territory of an investor of the other Party, on compliance with any of the requirements set forth in sub-paragraphs (f) through (i) of paragraph 1 above. 3. Nothing in this Article shall be construed so as to derogate from the obligations of the Parties under the Agreement on Trade Related Investment Measures in Annex 1A to the WTO Agreement.

Prohibition of Performance Requirements. 1. Neither Party shall impose or enforce any of the following requirements as a condition for the establishment, acquisition, expansion, management, operation, maintenance, use or possession of investments in its territory of an investor of the other 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 or use goods produced or services provided in the territory of the former Party, or to purchase goods or services from natural or legal persons in the territory of the former Party; (d) to relate the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investments; (e) to restrict sales of goods or services in the territory of the former Party that such investments produce or provide by relating such sales to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology, a production process or other proprietary knowledge to a natural or legal person of the former Party, except when the requirement: (i) is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) concerns the transfer of intellectual property which is undertaken in a manner not inconsistent with the Agreement on Trade- Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; (g) to locate its headquarters for a specific region or the world market in the territory of the former Party; (h) to achieve a given level or value of research and development in the territory of the former Party; or (i) to supply one or more of the goods that it produces or the services that it provides to a specific region outside the territory of the former Party exclusively from the territory of the former Party. 2. Each Party is not precluded by paragraph 1 above from conditioning the receipt or continued receipt of an advantage, in connection with investments in its territory of an investor of the other Party, on compliance with any of the requirements set forth in sub-paragraphs (f) through (i) of paragraph 1 above. 3. Nothing in this Article shall be construed so as to derogate from the obligations of the Parties under the Agreement on Trade Related Investment Measures in Annex 1A to the WTO Agreement.

Prohibition of Performance Requirements. 1. Neither Party shall impose or enforce any of the following requirements as a condition for the establishment, acquisition, expansion, management, operation, maintenance, use or possession of investments in its territory of an investor of the other 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 or use goods produced or services provided in the territory of the former Party, or to purchase goods or services from natural or legal persons in the territory of the former Party; (d) to relate the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investments; (e) to restrict sales of goods or services in the territory of the former Party that such investments produce or provide by relating such sales to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology, a production process or other proprietary knowledge to a natural or legal person of the former Party, except when the requirement: (i) is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) concerns the transfer of intellectual property which is undertaken in a manner not inconsistent with the Agreement on Trade- Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; (g) to locate its headquarters for a specific region or the world market in the territory of the former Party; (h) to achieve a given level or value of research and development in the territory of the former Party; or (i) to supply one or more of the goods that it produces or the services that it provides to a specific region outside the territory of the former Party exclusively from the territory of the former Party. 2. Each Party is not precluded by paragraph 1 above from conditioning the receipt or continued receipt of an advantage, in connection with investments in its territory of an investor of the other Party, on compliance with any of the requirements set forth in sub-paragraphs (f) through through (i) of paragraph 1 above. 3. Nothing in this Article shall be construed so as to derogate from the obligations of the Parties under the Agreement on Trade Related Investment Measures in Annex 1A to the WTO Agreement.

Prohibition of Performance Requirements. 1. Neither Party shall impose or enforce any of the following requirements as a condition for the establishment, acquisition, expansion, management, operation, maintenance, use or possession of investments in its territory of an investor of the other 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 or use goods produced or services provided in the territory of the former Party, or to purchase goods or services from natural or legal persons in the territory of the former Party; (d) to relate the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investments; (e) to restrict sales of goods or services in the territory of the former Party that such investments produce or provide by relating such sales to the volume or value of its exports or foreign exchange earnings; (f) to transfer technology, a production process or other proprietary knowledge to a natural or legal person of the former Party, except when the requirement: (i) is imposed or enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws; or (ii) concerns the transfer of intellectual property which is undertaken in a manner not inconsistent with the Agreement on Trade- Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; (g) to locate its headquarters for a specific region or the world market in the territory of the former Party; (h) to achieve a given level or value of research and development in the territory of the former Party; or (i) to supply one or more of the goods that it produces or the services that it provides to a specific region outside the territory of the former Party exclusively from the territory of the former Party. 2. Each Party is not precluded by paragraph 1 above from conditioning the receipt or continued receipt of an advantage, in connection with investments in its territory of an investor of the other Party, on compliance with any of the requirements set forth in sub-paragraphs (f) through through (i) of paragraph 1 above. 3. Nothing in this Article shall be construed so as to derogate from the obligations of the Parties under the Agreement on Trade Related Investment Measures in Annex 1A to the WTO Agreement. Article 76 78 1. Articles 73 75 and 75 77 shall not apply to investors and investments, in respect of: (a) any exception specified by the Parties in Annexes V A and V B; and (b) an amendment or modification to any exception referred to in sub- paragraph (a) above, provided that the amendment or modification does not decrease the level of conformity of the exception with Articles 73 75 and 75 77. 2. The exceptions referred to in sub-paragraph (a) of paragraph 1 above shall include the following elements, to the extent that these elements are applicable: (a) sector or matter; (b) obligation or article in respect of which the exception is taken; (c) legal source or authority of the exception; and (d) succinct description of the exception. 3. If a Party makes an amendment or modification referred to in subparagraph (b) of paragraph 1 of this Article, that Party shall, prior to the implementation of the amendment or modification, or in exceptional circumstances, as soon as possible thereafter: (a) notify the other Party of the elements set out in paragraph 2 above; and (b) provide to the other Party, upon request, particulars of the amended or modified exception. 4. Each Party shall endeavour, where appropriate, to reduce or eliminate the exceptions specified in Annexes V A and V B respectively.