Common use of Protection and Treatment Clause in Contracts

Protection and Treatment. (1) Each Party shall protect within its territory investments made in accordance with its laws and regulations by investors of the other Party and shall not impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment, extension, sale and, should it so happen, liquidation of such investments. (2) Each Party shall ensure fair and equitable treatment within its territory of the investments of investors of the other Party, This treatment shall not be less favourable than that granted by each Party to investments made within its territory by its own investors, or than that granted by each Party to the investments made within its territory by investors of the most favoured nation, if this latter treatment is more favourable. (3) If a Party accords special advantages to investments of investors of any third State by virtue of an agreement establishing a free trade area, a customs union or a common market or a similar regional arrangement or by virtue of an agreement on the avoidance of double taxation, it shall not be obliged to accord such advantages to investments of investors of the other Party.