1. Except as set out in this Article, nothing in this Agreement
shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations
of any Party under any tax convention. In the event of any inconsistency
between this Agreement and any such convention, that convention
shall prevail to the extent of the inconsistency.
3. Notwithstanding paragraph 2:
4. Subject to paragraph 2:
(c) any most-favored-nation obligation with respect to an advantage
accorded by a Party pursuant to a tax convention,
(d) to a non-conforming provision of any existing taxation measure,
(e) to the continuation or prompt renewal of a non-conforming
provision of any existing taxation measure,
(f) to an amendment to a non-conforming provision of any existing
taxation measure to the extent that the amendment does not decrease
its conformity, at the time of the amendment, with any of those
(g) to any new taxation measure aimed at ensuring the equitable
and effective imposition or collection of taxes and that does
not arbitrarily discriminate between persons, goods or services
of the Parties or arbitrarily nullify or impair benefits accorded
under those Articles, in the sense of Annex 2004, or
(h) to the measures listed in paragraph 2 of Annex 2103.4.
5. Subject to paragraph 2 and without prejudice to the rights
and obligations of the Parties under paragraph 3, Article 1106(3),
(4) and (5) (Investment - Performance Requirements) shall apply
to taxation measures.
6. Article 1110 (Expropriation and Compensation) shall apply to
taxation measures except that no investor may invoke that Article
as the basis for a claim under Article 1116 (Claim by an Investor of
a Party on its Own Behalf) or 1117 (Claim by an Investor of a Party
on Behalf of an Enterprise), where it has been determined pursuant
to this paragraph that the measure is not an expropriation. The
investor shall refer the issue of whether the measure is not an
expropriation for a determination to the appropriate competent
authorities set out in Annex 2103.6 at the time that it gives notice
under Article 1119 (Notice of Intent to Submit a Claim to Arbitration).
If the competent authorities do not agree to consider the issue or,
having agreed to consider it, fail to agree that the measure is not an
expropriation within a period of six months of such referral, the investor
may submit its claim to arbitration under Article 1120 (Submission of a
Claim to Arbitration).