Article 607: Performance Requirements

1. No Party shall impose or enforce, in relation to an investor of a Party or an enterprise in its territory, or condition the receipt of an incentive by an enterprise on compliance with, any requirement to:

(a) achieve a specific level or percentage of local content of goods or services;

(b) purchase or use goods or services produced locally;

(c) purchase goods or services from a local source; or

(d) achieve a certain level of sales in the territory of another Party.36

2. For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party from conditioning the receipt of an incentive on any requirement to carry out economic activities in its territory or to create or maintain employment.

3. A Party may, under exceptional circumstances, adopt or maintain a measure inconsistent with paragraph 1 for regional economic development purposes, provided that:

(a) the measure does not operate to impair unduly the access of persons, goods, services or investors of another Party;

(b) the measure is not more trade restrictive than necessary to achieve its specific objective; and

(c) the Party promptly notifies the other Parties of the details of the measure.




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36 This paragraph was amended by the Fifth Protocol of Amendment.