NAFTA: Treaty | Page 6

Chapter.
Article 1102: National Treatment
1. Each Party shall accord to investors of another Party treatment no
less favorable than that it accords, in like circumstances, to its own
investors with respect to the establishment, acquisition, expansion,
management, conduct, operation and sale or other disposition of
investments.
2. Each Party shall accord to investments of investors of another Party
treatment no less favorable than that it accords, in like circumstances,
to investments of its own investors with respect to the establishment,
acquisition, expansion, management, conduct, operation and sale or
other disposition of investments.
3. The treatment accorded by a Party under paragraphs 1 and 2 means,
with respect to a state or province, treatment no less favorable than the
most favorable treatment accorded, in like circumstances, by such state
or province to investors, and to investments of investors, of the Party of
which it forms a part.
4. For greater certainty, no Party shall:

(a) impose on an investor of another Party a requirement that a
minimum level of equity in an enterprise in the territory of the Party be
held by its nationals, other than nominal qualifying shares for directors
or incorporators of corporations; or
(b) require an investor of another Party, by reason of its nationality, to
sell or otherwise dispose of an investment in the territory of the Party.
Article 1103: Most-Favored-Nation Treatment
1. Each Party shall accord to investors of another Party treatment no
less favorable than that it accords, in like circumstances, to investors of
another Party or of a non-Party with respect to the establishment,
acquisition, expansion, management, conduct, operation and sale or
other disposition of investments.
2. Each Party shall accord to investments of investors of another Party
treatment no less favorable than that it accords, in like circumstances,
to investments of investors of another Party or of a non-Party with
respect to the establishment, acquisition, expansion, management,
conduct, operation and sale or other disposition of investments.
Article 1104: Non-discriminatory Treatment
Each Party shall accord to investors of another Party and to investments
of investors of another Party the better of the treatment required by
Articles 1102 and 1103 ("non-discriminatory treatment").
Article 1105: Minimum Standard of Treatment
1. Each Party shall accord to investments of investors of another Party
treatment in accordance with international law, including fair and
equitable treatment and full protection and security.
2. Without prejudice to paragraph 1 and notwithstanding Article 1108
(8) (b), each Party shall accord to investors of another Party, and to
investments of investors of another Party, non-discriminatory treatment
with respect to measures it maintains or adopts relating to losses

suffered by investments in its territory owing to armed conflict or civil
strife.
3. Paragraph 2 shall not apply to existing measures related to subsidies
or grants that are inconsistent with Article 1102.
Article 1106: Performance Requirements
1. A Party shall not impose 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
(g) to act as the exclusive supplier of the goods it produces or services
it provides to a specific region or world market.
2. A requirement that an investment use a technology to meet generally

applicable health, safety or environmental standards-related measures,
as defined in Article 915, shall not be construed to be inconsistent with
paragraph 1(f). For greater certainty, Articles 1102, 1103 and 1104
shall apply to such requirements.
3. A Party shall not condition the receipt or continued receipt of an
advantage, in connection with investments in its territory of investors
of a Party or of a non-Party, 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