CHAPTER II

INVESTMENT

Section A

<<Note: CNs have agreed that this Chapter will not include an objectives article, subject to the drafting of language on objectives in this Chapter and other Chapters in the preamble.

Four Parties have proposed that the following elements be included in the preamble: to encourage and promote the flow of investment between the Parties on a mutually advantageous basis and as a means to promote economic growth, under conditions of transparency within a stable framework of rules to ensure the protection and security of investments by investors of other Parties within each Party’s territory, while recognizing the rights of Parties to regulate and the responsibility of governments to protect public welfare, including public health, safety and the environment.

Parties have agreed to the following text in the preamble: “Recognizing the inherent right to regulate and resolving to preserve the flexibility of the Parties to protect legitimate public welfare objectives, such as public health, safety, the environment, the conservation of living or non-living exhaustible natural resources, and public morals;”>>