Common use of Essential Security Interests Clause in Contracts

Essential Security Interests. 1. This Agreement shall not preclude the application by either Contracting Party of measures necessary for: (a) The maintenance of public order, (b) The fulfillment of its obligations with respect to the maintenance or restoration of international peace or security, or (c) The protection of its own essential security interests which may include interests deriving from its membership of a customs, economic or monetary union, a common market or a free trade area. 2. If either Contracting Party takes any action or measures against the other Contracting Party in conformity with paragraph 1 (c) of this Article based on interests deriving from its membership of a customs, economic or monetary union, a common market or a free trade area, the other Contracting Party against whom such actions or measures were taken may take similar actions or measures against the first Contracting Party based on the principle of reciprocity. In such a circumstance, the investors of the first Contracting Party affected by such measures can not resort to international arbitration under Article 8 of this Agreement to get compensation for any losses suffered as a result of such measures.