Common use of Prohibition of Special Compensatory Conditions Clause in Contracts

Prohibition of Special Compensatory Conditions. 1. Each Party shall ensure that its entities do not take into account, request or impose special countervailing conditions in the qualification and selection of suppliers, goods or services, in the evaluation of tenders or in the award of contracts. For the purposes of this Article, special countervailing conditions are conditions that an entity imposes or takes into account prior to or during the procurement process to promote local development or improve balance of payments accounts through local content requirements, licensing of technology, investment, countertrade or similar requirements.

Prohibition of Special Compensatory Conditions. 1. Each Party shall ensure that its entities do not take into account, request or impose special countervailing conditions in the qualification and selection of suppliers, goods or services, in the evaluation of tenders or in the award of contracts. For the purposes of this Article, special countervailing compensatory conditions are conditions those that an entity imposes or takes into account prior to or during the procurement process procedure to promote local development or improve the balance of payments accounts accounts, through local content requirements, licensing of technology, investment, countertrade or similar requirements.