636-(12)

II SÉRIE-A — NÚMERO 35

7) For the purposes of this article:

a) The term «iaxation measure» includes:

») Any provision relating to taxes of the domestic law of the Contracting Party or of a political subdivision thereof or a local authority therein; and

it) Any provision relating to taxes of any

convention for the avoidance of double taxation or of any other international agreement or arrangement by which the Contracting Party is bound;

b) There shall be regarded as taxes on income or on capital all taxes imposed on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates, inheritances and gifts, or substantially similar' taxes, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation;

c) A «competent tax authority* means the competent authority pursuant to a double taxation agreement in force between the Contracting Parties or, when no such agreement is in force, the minister or ministry responsible for taxes or their authorized representatives;

d) For the avoidance of doubt, the terms «tax provisions* and «taxes» do not include customs duties.

Article 22 State and privileged enterprises

1) Each Contracting Party shall ensure that any state enterprise which it maintains or establishes shall conduct its activities in relation to the sale or provision of goods and services in its area in a manner consistent with the Contracting Party's obligations under part m of this Treaty.

2) No Contracting Party shall encourage or require such a state enterprise to conduct its activities in its area in a manner inconsistent with the Contracting Party's obligations under other provisions of this Treaty.

3) Each Contracting Party shall ensure that if it establishes or maintains an entity and entrusts the entity with regulatory, administrative or other governmental authority, such entity shall exercise that authority in a manner consistent with die Contracting Party's obligations under this Treaty.

4) No Contracting Party shall encourage or require any entity to which it grants exclusive or special privileges to conduct its activities in its area in a manner inconsistent with die Contracting Party's obligations under this Treaty.

5) For the purposes of this article, «entity» includes any enterprise, agency or other organization or individual.

Article 23

Observance by sub-national authorities

1) Each Contracting Party is fully responsible under this Treaty for the observance of all provisions of the Treaty, and shall take such reasonable measures as may be available to it to ensure such observance by regional and local governments and authorities within its area.

2) The dispute settlement provisions in parts u, rv and v of this Treaty may be invoked in respect of measures affecting the observance of the Treaty by a Contracting Party which have been taken by regional or local governments or authorities within the area of the Contracting Party.

Article 24

Exceptions

1) This article shall not apply to articles 12, 13 and 29.

2) The provisions of this Treaty other than:

a) Those referred to in paragraph 1); and

b) With respect to subparagraph 0 of part in of the Treaty;

shall not preclude any Contracting Party from adopting or enforcing any measure:

0 Necessary to protect human, animal or plant life or health;

it) Essential to the acquisition or distribution of energy materials and products in conditions of short supply arising from causes outside the control of that Contracting Party, provided that any such measure shall be consistent with the principles that:

A) All other Contracting Parties are entitled to an equitable share of the international supply of such energy materials and products; and

B) Any such measure that is inconsistent with this Treaty shall be discontinued as soon as the conditions giving rise to it have ceased to exist; or

«0 Designed to benefit investors who are aboriginal people or socially or economically disadvantaged individuals or groups or their investments and notified to the Secretariat as such, provided that such measure:

A) Has no significant impact on that Contracting Party's economy; and

B) Does not discriminate between investors of any other Contracting Party and investors of that Contracting Party not included among those for whom the measure is intended;

provided that no such measure shall constitute a disguvsed. restriction on economic activity in the energy sector, or arbitrary or unjustifiable discrimination between Contracting Parties or between investors or other interested persons of Contracting Parties. Such measures shall be duly motivated and shall not nulify or impair any benefit one or more other Contracting Parties may reasonably expect under this Treaty to an extent greater than is strictly necessary to the stated end.

3) The provisions of this Treaty other than those referred to in paragraph 1) shall not be construed to prevent any Contracting Party from taking any measure which it considers necessary.

a) For the protection of its essential security interests including those:

i) Relating to the supply of energy materials and products to a military establishment; or