NAFTA: Treaty | Page 9

protect such
business information as is confidential from disclosure that would
prejudice the investor's or the investment's competitive position.
Nothing in this paragraph shall preclude a Party from otherwise
obtaining or disclosing information in connection with the equitable
and good faith application of its laws.
Article 1112: Relationship to Other Chapters
1. In the event of any inconsistency between a provision of this Chapter
and a provision of another Chapter, the provision of the other Chapter
shall prevail to the extent of the inconsistency.
2. A requirement by a Party that a service provider of another Party
post a bond or other form of financial security as a condition of
providing a service into its territory does not of itself make this Chapter
applicable to the provision of that cross-border service. This Chapter
shall apply to that Party's treatment of the posted bond or financial
security.
Article 1113: Denial of Benefits
1. Each Party reserves the right to deny to an investor of another Party
that is an enterprise of such Party and to investments of such investor
the benefits of this Chapter if investors of a non-Party own or control
the enterprise and:
(a) the denying Party does not maintain diplomatic relations with the
non-Party; or (b) the denying Party adopts or maintains measures with
respect to the non-Party that prohibit transactions with the enterprise or
that would be violated or circumvented if the benefits of this Chapter
were accorded to the enterprise or to its investments.
2. Subject to prior notification and consultation in accordance with
Articles 1803 (Notification and Provision of Information) and 2006

(Consultations), respectively, each Party reserves the right to deny to an
investor of another Party that is an enterprise of such Party and to
investments of such investors the benefits of this Chapter if investors of
a non-Party own or control the enterprise and the enterprise has no
substantial business activities in the territory of the Party under whose
laws it is constituted or organized.
Article 1114: Environmental Measures
1. Nothing in this Chapter shall be construed to prevent a Party from
adopting, maintaining, or enforcing any measure, otherwise consistent
with this Chapter, that it considers appropriate to ensure that
investment activity in its territory is undertaken in a manner sensitive to
environmental concerns.
2. The Parties recognize that it is inappropriate to encourage investment
by relaxing domestic health, safety or environmental measures.
Accordingly, a Party should not waive or otherwise derogate from, or
offer to waive or otherwise derogate from, such measures as an
encouragement for the establishment, acquisition, expansion, or
retention in its territory of an investment of an investor. If a Party
considers that another Party has offered such an encouragement, it may
request consultations with the other Party and the two Parties shall
consult with a view to avoiding any such encouragement.
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Subchapter B - SETTLEMENT OF DISPUTES BETWEEN A PARTY
AND AN INVESTOR OF ANOTHER PARTY
Article 1115: Purpose
This Subchapter establishes a mechanism for the settlement of
investment disputes that assures both equal treatment among investors
of the Parties in accordance with the principle of international
reciprocity and due process before an impartial tribunal.

Article 1116: Claim by an Investor of a Party on Behalf of Itself
1. An investor of a Party may submit to arbitration under this
Subchapter a claim that another Party has breached:
(a) a provision of Subchapter A; or
(b) Article 1502(3)(a) (Monopolies and State Enterprises) or Article
1503(2) (State Enterprises) where the alleged breach pertains to the
obligations of Subchapter A,
and that the investor has incurred loss or damage by reason of, or
arising out of, that breach.
2. An investor may not make a claim if more than three years have
elapsed from the date on which the investor first acquired, or should
have first acquired, knowledge of the alleged breach and knowledge
that the investor has incurred loss or damage.
Article 1117: Claim by an Investor of a Party on Behalf of an
Enterprise
1. An investor of a Party, on behalf of an enterprise of another Party
that is a juridical person that the investor owns or controls directly or
indirectly, may submit to arbitration under this Subchapter a claim that
the other Party has breached:
(a) a provision of Subchapter A; or
(b) Article 1502 (3)(a) (Monopolies and State Enterprises) or Article
1503(2) (State Enterprises) where the alleged breach pertains to the
obligations of Subchapter A;
and that the enterprise has incurred loss or damage by reason of, or
arising out of, that breach.
2. An investor may not make a claim on behalf of an enterprise
described in paragraph 1 if more than three years have elapsed from the
date on which the enterprise first acquired, or should have first acquired,

knowledge of the alleged breach and