8. The Parties affirm that economic development within their territories may include the provision of incentives. The Parties acknowledge that certain incentives may harm the economic interests of other Parties. The Parties shall take into account the economic interests of other Parties in developing and applying their incentive measures.44
8P8. The Parties shall endeavour to refrain from providing an incentive that:
(a) sustains, for an extended period of time, an economically non-viable operation whose production adversely affects the competitive position of a facility located in the territory of another Party;
(b) increases capacity in sectors where the increase is not warranted by market conditions; or
(c) is excessive, either in absolute terms or relative to the total value of the specific project for which the incentive is provided, taking into account such factors as the economic viability of the project and the magnitude of the economic disadvantage that the incentive is designed to overcome. 45
9. Each Party shall refrain from engaging in bidding wars to attract prospective investors seeking the most beneficial incentive package.46
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44 This paragraph was amended by the Eighth Protocol of Amendment.
45 This paragraph was added to the Agreement on Internal Trade by means of the Eighth Protocol of Amendment.
46 This paragraph was amended by the Fifth Protocol of Amendment.