1. Subject to Article 605, no Party shall require an investor of any other Party to be resident in its territory as a condition for the establishment or acquisition of an enterprise.
2. Subject to Article 605, no Party shall require an enterprise of any other Party to establish or maintain a representative office or enterprise, or to be resident, in its territory as a condition for carrying on business activities.
3. For greater certainty, a requirement by a Party that an investor of any other Party:
(a) have an agent for service of notices of proceedings or other judicial documents; or
(b) post a bond or other form of financial security, for a legitimate objective;
as a condition for carrying on business activities in or into its territory is not a requirement to establish or maintain a local presence or to be resident in its territory.
4. Annex 604.4 lists existing measures maintained by each Party which include local presence and residency requirements that either require an investor of another Party to be resident in its territory as a condition for the establishment or acquisition of an enterprise; or require an enterprise of any other Party to establish or maintain a representative office or enterprise, or to be resident, in its territory as a condition for carrying on business activities. No measure listed may be made more restrictive than it was on the date of entry into force of this Agreement.33
5. The Parties shall examine the measures listed in Annex 604.4 and make recommendations to the Committee as to the appropriate retention, removal or replacement of such measures.34
6. No measure that a Party lists or proposes to list in Annex 604.4 shall, before January 1, 1997, be subject to the obligations of paragraphs 1 and 2 or to dispute settlement procedures under this Agreement.
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33 This paragraph was amended by the Second Protocol of Amendment.
34 This paragraph was amended by the Second Protocol of Amendment.