Common use of Protection and Treatment Clause in Contracts

Protection and Treatment. (1) Without prejudice to the measures adopted by the European Union, each Contracting Party shall protect within its territory, investments made in accordance with its national legislation by investors of the other Contracting Party and shall not impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment, extension, sale or liquidation of such investments. In particular, each Contracting Party or the competent authorities of its State, shall issue the necessary authorizations mentioned in Article 2, paragraph (2) of this Agreement. (2) Each Contracting Party shall ensure fair and equitable treatment within its territory to investments of the investors of the other Contracting Party. This treatment shall not be less favorable than that granted by each Contracting Party to investments made within its territory by its own investors, or than that granted by each Contracting Party to the investments made within its territory by investors of any third State, if this latter treatment is more favorable. (3) The non-discriminatory treatment, national treatment and most favoured nation treatment provisions of this Agreement shall not apply to all actual Or future advantages accorded by either Contracting Party by virtue of its membership of, or association with, a customs, economic or monetary union, a common market or a free trade area, to investors of its own, of Member States of such union, common market or free trade area, or of any other third State. Nor shall such treatment relate to any advantage which either Contracting Party accords to investors of a third State by virtue of a double taxation agreement or other agreements on a reciprocal basis regarding tax matters. (4) Nothing in this Agreement shall be construed as: a) to prevent any Contracting Party from taking any measure or action which it considers necessary for the protection of its essential security interests; b) to prevent any Contracting Party from taking any measure necessary for the maintenance of public order, subject that such measures are not applied in a manner which would constitute a means of arbitrary or unjust discrimination or a disguised investment restriction; c) to preclude a Contracting Party from applying measures that it considers necessary for the fulfillment of its obligations under the United Nations Charter with respect to the maintenance or restoration of international peace and security; d) to require a Contracting Party to furnish or allow access to any information the disclosure of which is contrary to national legislation concerning classified information.