2. (a) Each Party shall accord investments in its territory, and associated activities in
connection with these investments, of nationals or companies of the other Party
treatment no less favorable than that which it accords in like situations to investments
and associated activities of its own nationals or companies, or nationals or
companies of any third country, whichever is the most favorable. Associated activities
in connection with an investment include, but are not limited to:
(i) the establishment, control and maintenance of branches, agencies, offices,
factories or other facilities for the conduct of business;
(ii) the organization of companies under applicable laws and regulations; the
acquisition of companies or interests in companies or in their property; and the
management, control, maintenance, use, enjoyment and expansion, and the sale,
liquidation, dissolution or other disposition, of companies organized or acquired;
(iii) the making, performance and enforcement of contracts related to investment;
(iv) the acquisition (whether by purchase, lease or any other legal means),
ownerships and disposition (whether by sale, testament or any other legal means) of
personal property of all kinds, both tangible and intangible.
(v) the leasing of real property appropriate for the conduct of business;
(vi) the acquisition, maintenance and protection of copyrights, patents, trademarks,
trade secrets, trade names, licenses and other approvals of products and
manufacturing processes, and other industrial property rights; and,
(vii) the borrowing of funds at market terms and conditions from local financial
institutions, as well as the purchase and issuance of equity shares in the local
financial markets, and, in accordance with national regulations and practices, the
purchase of foreign exchange for the operation of the enterprise.
(b) This Treaty shall also apply to investments by nationals or companies of either
Party, made prior to the entering into force of this Treaty and accepted in accordance
with the respective prevailing legislation of either Party.
Paragraph 3 is renumbered as paragraphs 3(a) and 3(b) and changed to read as
follows:
3. (a) Notwithstanding the preceding provisions of this Article, each Party reserves
the right to maintain limited exceptions to the standard of national treatment
otherwise required concerning investments or associated activities if exceptions fall
within one of the sectors listed in the Annex to this Treaty. Both Parties hereby agree
to maintain the number of such exceptions to a minimum. In addition, each Party
shall notify the other Party of any specific measures which constitute exceptions to
the standard of national treatment provided herein. In no event, however, shall the
treatment to be accorded pursuant to any exception-be less favorable than that
accorded in like situations to investments and associated activities of nationals or
companies of any third country. Moreover, no exception, within the sectors contained
in the Annex, introduced after the date of entry into force of this Treaty shall apply to
investments of nationals or companies of the other Party existing in that sector at the
time the exception becomes effective.