1.F CONSUMER PROTECTION
A Contracting Party shall have freedom to adopt or continue (with or without modifications) such
measures as are required to ensure compliance with UN Guidelines for consumer protection as
amended or revised from time to time, including, in particular, UN Guidelines dealing with the
following matters-
(a) physical safety (including product re-call and product liability);
(b) economic interests, including competition principles;
(c) standards;
(d) essential goods and services;
(e) health and basic needs;
(f) redressal of grievances; and
(g) education and information for the consumer.
1.G RESTRICTIVE BUSINESS PRACTICES
A Contracting Party shall have freedom to adopt or continue (with or without modifications)
measures that are required to check anti-competitive business practices, to the extent to which such
measures are in substantial conformity with the UNCTAD Code, known as the Set of Multilaterally
Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices 1980, as
revised from time to time.
1.H WORKER PROTECTION (ILO TRIPARTITE DECLARATION)
A Contracting Party shall be entitled to adopt or continue (with or without modifications) such
measures as are required to secure conformity with the ILO Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy 1971, as revised or amended from time to
time.
1.I NOTIFICATION OF OPERATIONAL GUIDELINES AND MANDATORY STANDARDS
(i) Each investor shall keep-
(a) the Contracting Party in whose territory the investment is made; and
(b) the MAI Secretariat, informed about the operational guidelines and mandatory
standards formulated by the investor from time to time for being followed in its
branches and units.
(ii) The MAI Secretariat shall communicate to Contracting States the information received by it
under paragraph 1.I (i)(b) above, by issuing periodical circulars as and when needed.
1.J TRANSFER PRICING AND ACCOUNTING STANDARDS
The Investor shall scrupulously comply with such obligations as may arise under internationally
agreed guidelines or standards relating to-
(i) transfer pricing;
(ii) uniform transparent accounting, including guidelines and standards on the above matters as
evolved from time to time by the UNCTAD or the OECD.
1.K ENVIRONMENTAL PROTECTION
Each Investor shall comply with the guidelines as to Environment Protection, as set out in the
Appendix to these Articles.
PRUDENTIAL MEASURES
1.1 Notwithstanding any other provisions of the Agreement, a Contracting Party shall not be
prevented from taking prudential measures with respect to financial services, including measures
for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is
owed by an enterprise providing financial services, or to ensure the integrity and stability of its
financial system.
1.2 Where such measures do not conform with the provisions of the Agreement, they shall not be
used as a means of avoiding the Contracting Party's commitments or obligations under the
Agreement.
TRANSPARENCY
2.1 Each Contracting Party shall promptly publish, or otherwise make publicly available, its laws,
regulations, procedures and administrative rulings and judicial decisions of general application as
well as international agreements which may affect the operation of the Agreement. Where a
Contracting Party establishes policies which are not expressed in laws or regulations or by other
means listed in this paragraph but which may affect the operation of the Agreement, that
Contracting Party shall promptly publish them or otherwise make them publicly available.
2.2 Each Contracting party shall promptly respond to specific questions and provide, upon request,
information to other Contracting Parties on matters referred to in Article 2.1.
2.3 Nothing in this Agreement shall prevent a Contracting Party from requiring an investor of
another Contracting Party, or its investment, to provide routine information concerning that
investment solely for information or statistical purposes. No Contracting Party shall be required to
furnish or allow access to information concerning particular investors or investments, the disclosure
of which would impede law enforcement or would be contrary to its laws, policies, or practices,
protecting confidentiality.
Article 4. KEY PERSONNEL
A TEMPORARY ENTRY AND STAY
A Contracting Party, shall, subject to its laws applicable from time to time relating to the entry and
sojourn of non citizens, permit natural persons of other Contracting party and personnel employed
by legal entities (or other investors who are not natural persons) of other Contracting Parties to enter
and remain in the territory for the purpose of engaging in activities, connected with investments.
Article 5. PERFORMANCE REQUIREMENTS
PARAGRAPH 1
Subject to the provisions of paragraphs 2 to 7, no Contracting party may impose, force or maintain
any of the following requirements, or enforce any commitment or undertaking, in connection with
the establishment, acquisition, expansion, management, operation, or conduct of an investment of
an investor of a Contracting Party or of a non-Contracting 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 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 natural or
legal 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 the Agreement;
(g) to locate its headquarters for a specific region or the world market in that Contracting Party;
(h) to supply one or more of the goods that it produces or the services that it provides to a
specific region or world market exclusively from the territory of that Contracting party;
(i) to achieve a given level or value of production, investment, manufacturing, sales,
employment, research and development in its territory;
(j) to hire a given level or type of local personnel;
(k) to establish a joint venture; or
(l) to achieve a minimum level of local equity participation.
PARAGRAPH 2
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).
PARAGRAPH 3
Paragraph 1 (F) (g) (h) (i) (j) (k) (1) do not apply if the requirements described in one or more of
these provisions are conditions for the receipt or continued receipt of an advantage in connection
with the establishment, acquisition, expansion, management or operation, or conduct of an
investment of an investor (of a Contracting Party or a non-Contracting Party, in its territory), and in
particular, if the requirements and the advantage are subject to a contractual obligation between the
investor or investment on the one side and the host state or its sub-federal entities on the other.
PARAGRAPH 4
Nothing in paragraph 3 shall be construed to prevent a Contracting Party from conditioning the
receipt or continued receipt of an advantage, in connection with an investment in its territory of an
investor of a Contracting Party or of a non-Contracting 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.
PARAGRAPH 5
Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not
constitute a disguised on international trade or investment, nothing in paragraph 1 (b) or (c) or 3 (b)
or (c) shall be construed to prevent any Contracting 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.
PARAGRAPH 6
The provisions of:
(a) Paragraphs 1 (b), (c), (f) and (i), and 3(b) and (c) do not apply to qualification requirements
for goods or services with respect to export promotion and foreign aid programmes.
(b) Paragraphs (1)(b), (c), (f) and (i), and 3(b) and (c) do not apply to procurement by a
Contracting Party or a state enterprise; and
(c) Paragraphs (3)(b) and (c) do not apply to requirements imposed by an importing Party
relating to the content of goods necessary to qualify for preferential quotas.
(d) Paragraph (1) does not apply to requirements imposed by a Contracting Party as a part of
privatisation operations.
PARAGRAPH 7
Notwithstanding anything contained in paragraph 1, a Contracting Party shall be free to adopt a
measure otherwise prohibited by that paragraph for compelling social or economic reasons.
Article 6. PRIVATISATION
PARAGRAPH 1 NATIONAL TREATMENT AND MOST FAVOURED NATION TREATMENT
Each Contracting Party shall accord treatment as defined in Paragraph XX (National Treatment,
MFN Treatment) in case of a privatisation-
(a) both as regards the initial privatisation; and
(b) as regards subsequent transactions involving a privatised assets between investors or
investments.
PARAGRAPH 2
Nothing in this agreement shall be construed as requiring any Contracting Party to privatise.
PARAGRAPH 3 TRANSPARANCY
For the purpose of this Article each Contracting Party shall promptly publish the essential features
and procedures for privatisation.
PARAGRAPH 4 PRIVATISATION DEFINED
Privatisation means a partial or complete sale or other mode of transfer of the function of the