Common use of Right to Regulate and Levels of Protection Clause in Contracts

Right to Regulate and Levels of Protection. 1. Recognising the sovereign right of each Party, in a manner consistent with this Agreement, to establish its priorities and its levels of environmental and labour protection, and to adopt or modify accordingly its relevant laws, policies and practices, each Party shall seek to ensure that its laws, policies and practices provide for and encourage high levels of environmental and labour protection consistent with the standards, principles and agreements referred to in Articles 8.5 (International Labour Standards and Agreements) and 8.6 (Multilateral Environmental Agreements and Environmental Principles) and shall strive to further improve the level of protection provided for in those laws, policies and practices. 2. The Parties recognise the importance of taking account of scientific, technical and other information, and relevant international standards, guidelines and recommendations, if existing, when preparing and implementing measures related to the environment and labour conditions that affect trade and investment between them.