1. Each Party shall accord to covered investments treatment in accordance with customary
international law, including fair and equitable treatment and full protection and security.
2. For greater certainty, paragraph 1 prescribes the customary international law minimum
standard of treatment of aliens as the minimum standard of treatment to be afforded to covered
investments. The concepts of “fair and equitable treatment” and “full protection and security” do
not require treatment in addition to or beyond that which is required by that standard, and do not
create additional substantive rights. The obligation in paragraph 1 to provide:
(a) “fair and equitable treatment” includes the obligation not to deny justice in
criminal, civil, or administrative adjudicatory proceedings in accordance with the
principle of due process embodied in the principal legal systems of the world; and
(b) “full protection and security” requires each Party to provide the level of police
protection required under customary international law.
3. A determination that there has been a breach of another provision of this Treaty, or of a
separate international agreement, does not establish that there has been a breach of this Article.
4. Notwithstanding Article 14 [Non-Conforming Measures](5)(b) [subsidies and grants], each
Party shall accord to investors of the other Party, and to covered investments, non-discriminatory
treatment with respect to measures it adopts or maintains relating to losses suffered by
investments in its territory owing to armed conflict or civil strife.
5. Notwithstanding paragraph 4, if an investor of a Party, in the situations referred to in
paragraph 4, suffers a loss in the territory of the other Party resulting from:
(a) requisitioning of its covered investment or part thereof by the latter’s forces or
authorities; or
(b) destruction of its covered investment or part thereof by the latter’s forces or
authorities, which was not required by the necessity of the situation,
the latter Party shall provide the investor restitution, compensation, or both, as appropriate, for
such loss. Any compensation shall be prompt, adequate, and effective in accordance with Article
6 [Expropriation and Compensation](2) through (4), mutatis mutandis.
6. Paragraph 4 does not apply to existing measures relating to subsidies or grants that would be
inconsistent with Article 3 [National Treatment] but for Article 14 [Non-Conforming
Measures](5)(b) [subsidies and grants].