[Notes on Article 5, contd.]
IPIC/DC/3 page 26
58.
It is clear from the wording of paragraph (1) that the application of the principle of national treatment would require a Contracting Party that provided its own nationals with more extensive protection than the minimum protection required by the Treaty to make available the same, more extensive, treatment to eligible foreign natural persons and legal entities.
59.
Ad paragraph (2): This paragraph allows any Contracting Party to treat foreigners differently from nationals in certain circumstances, thereby allowing exceptions to national treatment. Three such possible exceptions are provided for: one is that a foreigner may be requested to appoint a local agent, for example, when he files an application for registration (even if nationals can act without a local agent), another one is that a foreigner may be required to designate a local address for the purpose of service, for example, of notifications of the registration authority (even if nationals can use the address of their residence as address for service), and the third one is that a foreigner may be required to comply with any special rule applicable to foreigners in court proceedings, for example, the posting of bond (even if nationals need not post such bond). referred to in Article 2(3) of the Paris Convention.
The exceptions are similar to those
60.
Ad paragraph (3): "nationals" in the context of Contracting Parties that are Intergovernmental
This paragraph clarifies the meaning of the term Organizations. In such a situation, "nationals" means nationals of any of the States members of the Intergovernmental Organization.