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, in connection with investment activities in its Area 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, 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 appoint, as executives or members of board of directors, individuals of any particular nationality; (g) to locate the headquarters of the investor for a specific region or the world market in its Area; (h) to achieve a given level or value of research and development in its Area; or (i) to supply to a specific region or the world market exclusively from its Area, one or more of the goods that the investor produces or the services that the investor provides. 2. Paragraph 1 does not preclude either 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 Party, on compliance with any of the requirements set forth in subparagraphs 1 (g) through (i).

Prohibition of Performance Requirements. 1. Neither Party shall impose or enforce any of the following thefollowing requirements, in connection with investment activities investmentactivities in its Area of an investor of the other Party: : (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, use or accord a preference to goods produced goodsproduced or services provided in its Area, or to purchase topurchase goods or services from natural or legal persons legalpersons or any other entity in its Area; ; (d) to relate in any way the volume or value of imports ofimports to the volume or value of exports or to the tothe amount of foreign exchange inflows associated with associatedwith investments of the investor; ; (e) to restrict sales of goods or services in its Area itsArea that investments of the investor produce or provide orprovide by relating such sales in any way to the volume thevolume or value of its exports or foreign exchange foreignexchange earnings; ; (f) to appoint, as executives or members of board of directorsofdirectors, individuals of any particular nationality; particularnationality; (g) to locate the headquarters of the investor for a specific aspecific region or the world market in its Area; ; (h) to achieve a given level or value of research and development anddevelopment in its Area; or or (i) to supply to a specific region or the world market worldmarket exclusively from its Area, one or more of the ofthe goods that the investor produces or the services theservices that the investor provides. . 2. Paragraph 1 does not preclude either Party from conditioning fromconditioning the receipt or continued receipt of an advantageanadvantage, in connection with investment activities in its Area itsArea of an investor of the other Party, on compliance with any withany of the requirements set forth in subparagraphs 1 (g) through g)through (i).