Publication: Magyar Közlöny
Issue: MK-1999-27 (Year: 1999, Number: 27)
Era: 1990-2004
Section: 
Paragraph Index: 213

4. With respect to Article 10 Canada and the United States each affirm that they will apply the provisions of Article 10 in accordance with the following considerations: For the purposes of assessing the treatment which must be accorded to Investors of other Contracting Parties and their Investments, the circumstances will need to be considered on a case-by-case basis. A comparison between the treatment accorded to Investors of one Contracting Party, or the Investments of Investors of one Contracting Party, and the Investments or Investors of another Contracting Party, is only valid if it is made between Investors and Investments in similar circumstances. In determining whether differential treatment of Investors or Investments is consistent with Article 10, two basic factors must be taken into account. The first factor is the policy objectives of Contracting Parties in various fields insofar as they are consistent with the principles of non-discrimination set out in Article 10. Legitimate policy objectives may justify differential treatment of foreign Investors or their Investments in order to reflect a dissimilarity of relevant circumstances between those Investors and Investments and their domestic counterparts. For example, the objective of ensuring the integrity of a country’s financial system would justify reasonable prudential measures with respect to foreign Investors or Investments, where such measures would be unnecessary to ensure the attainment of the same objectives insofar as domestic Investors or Investments are concerned. Those foreign Investors or their Investments would thus not be „in similar circumstances” to domestic Investors or their Investments. Thus, even if such a measure accorded differential treatment, it would not be contrary to Article 10. The second factor is the extent to which the measure is motivated by the fact that the relevant Investor or Investment is subject to foreign ownership or under foreign control. A measure aimed specifically at Investors because they are foreign, without sufficient countervailing policy reasons consistent with the preceding paragraph, would be contrary to the principles of Article 10. The foreign Investor or Investment would be „in similar circumstances” to domestic Investors and their Investments, and the measure would be contrary to Article 10.

Source: https://magyarkozlony.hu/hivatalos-lapok/9a9cf91e894c223daf4f422c4ff3939a175a3dd0/dokumentumok/cfdda7ae12cc433c714d617b11f21b093ff42b3e/letoltes