Free Trade Area of the Americas - FTAA

 
Ministerial
Declarations
Trade Negotiations
Committee
Negotiating
Groups
Special
Committees
Business
Facilitation
Civil
Society
Trade&Tariff
Database
Hemispheric
Cooperation
Program

Home Countries Sitemap A-Z list Governmental Contact Points

 
 

Investment Agreements in the Western Hemisphere: A Compendium

Bilateral Free Trade Agreements


III. Treatment | C. Other Aspects | 1. Performance

Free Trade Agreement Between Bolivia and Mexico

No Party may impose or require compliance with the following requirements or commitments, with respect to any investment in its territory:

a) to export a given level or percentage of goods and 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 territory, or to acquire goods from producers or services from providers in its territory; 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 such investment; e) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or to the foreign exchange earnings; f) to transfer technology, a production process or other proprietary knowledge to a person in its territory, except when the requirement is imposed by a court, administrative tribunal or a competent authority to remedy an alleged violation of competition or to act in a manner not inconsistent with the provisions of this Agreement; or g) to act as the exclusive supplier of the goods it produces or the services it provides for a specific region or world market. (Article 15-05(1)).

Paragraph 1 does not apply to any requirement other than the requirements set out in this paragraph. (Article 15-05(2)).

No Party may condition the receipt or continued receipt of an advantage in connection with an investment in its territory on compliance with any of the following requirements:

a) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from producers in its territory; b) to achieve a given level or percentage of domestic content; c) 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 such investment; or d) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings. (Article 15-05(3)).

Paragraph 3 does not apply to any requirement other than the requirements set out in this paragraph. (Article 15-05(4)).

Nothing in paragraphs 1 and 2 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory, upon requirements concerning geographic location of production units, employment generation or labor training or performance of research and development activities. (Article 15-05(5)).

Free Trade Agreement Between Costa Rica and Mexico

No Party may impose or require compliance with the following requirements or commitments, with respect to any investor of the other Party in its territory:

a) to export a given level or percentage of goods and 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 territory, or to acquire goods from producers or services from providers in its territory; and 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 such investment. (Article 13-06(1)).

No Party may condition the receipt or continued receipt of an advantage in connection with an investor of the other Party in its territory on compliance with any of the following requirements:
a) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from producers in its territory; b) to achieve a given level or percentage of domestic content; c) 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 such investment. (Article 13-06(2)).

Paragraph 1 and 2 do not apply to any requirement other than the requirements set out in these paragraphs. (Article 13-06(3)).

The provisions contained in:
a) subparagraphs a) , b) and c) of paragraph 1 and subparagraphs a) and b) of paragraph 2 of Article 13-06 do not apply to requirements for egilibility of the goods and services with respect to export-promotion programs; b) subparagraphs b), and c) of paragraph 1 and subparagraphs a) and b) of Article 13-06 do not apply to procurement by a Party or a State enterprise; and c) subparagraphs a) and b) of paragraph 2 of Article 13-06 do not apply to requirements imposed by an importing Party concerning the necessary content of goods for qualifying for preferential tariffs or quotas. (Article 13-06(4)).

Nothing in Article 13-06 shall be construed to prevent a Party from imposing requirements concerning geographic location of production units, employment generation or labor training or performance of research and development activities. (Article 13-06(5)).

In a case where, in the judgement of one Party, the imposition by the other Party of any of the following requirements negatively affects the flow of trade or constitutes a significant barrier to the investment of an investor of the other Party, the matter shall be considered by the Commission: a) to restrict the sale of goods in its territory that such investment produces by relating such sales in any way to the volume or value of its exports or to the foreign exchange generated; b) to transfer to a person in its territory, technology, processes or any confidential knowhow, except when such requirement is imposed by a court, administrative tribunal or competent authority to remedy an alleged violation of the law concerning competition or to act in a manner not inconsistent with the other provisions of this Agreement; or, c) to act as the exclusive supplier of the goods it produces for a specific regional or world market. (Article 13-06(6)).

If the Commission finds that, in fact, the requirement in question negatively affects the flow of trade or constitutes a significant barrier to the investment of an investor of the other Party, it shall adopt those provisions necessary to abolish the practice in question. The Parties shall consider these provisions as included in this Agreement. (Article 13-06(7)).

Free Trade Agreement Between Canada and Chile

Neither Party may impose or enforce any of the following requirements, or enforce any commitment or undertaking, in connection with the establishment, acquisition, expansion, management, conduct or operation of an investment of an investor of a Party or of a non-Party in its territory:

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 territory, or to purchase goods or services from persons in its territory;
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 such investment;
e) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings;
f) to transfer technology, a production process or other proprietary knowledge to a person in its territory, except when the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws or to act in a manner not inconsistent with other provisions of this Agreement; or
g) to act as the exclusive supplier of the goods it produces or services it provides to a specific region or world market. (Article G-06(1)).

A measure that requires an investment to use a technology to meet generally applicable health, safety or environmental requirements shall not be construed to be inconsistent with paragraph 1(f). For greater certainty, Articles G-02 and G-03 apply to the measure. (Article G-06(2)).

Neither Party may condition the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non-Party, on compliance with any of the following requirements: a) to achieve a given level or percentage of domestic content;
b) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from producers in its territory;
c) 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 such investment; or
d) to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales in any way to the volume or value of its exports or foreign exchange earnings. (Article G-06(3)).

Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non-Party, on compliance with a requirement to locate production, provide a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. (Article G-06 (4)).

Paragraphs 1 and 3 do not apply to any requirement other than the requirements set out in those paragraphs. (Article G-06(5)).

Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not constitute a disguised restriction on international trade or investment, nothing in paragraph 1(b) or (c) or 3(a) or (b) shall be construed to prevent a Party from adopting or maintaining measures, including environmental measures:

a) necessary to secure compliance with laws and regulations that are not inconsistent with the provisions of this Agreement;
b) necessary to protect human, animal or plant life or health; or
c) necessary for the conservation of living or non-living exhaustible natural resources. (Article G-06(6)).

 
countries sitemap a-z list governmental contact points