ARTICLE 11 SOURCING OF REQUISITE SKILLS State Parties shall, subject to their national laws and regulations, permit investors to engage key personnel and other necessary human resources of their choice, regardless of nationality under the following circumstances: (a) where the skills do not exist in the Host State and the Region; (b) where State Parties are satisfied that the sourcing of such skills will be in compliance with regional policies; and where such sourcing would enhance the development of local capacity through skills transfer. ARTICLE 12 OPTIMAL USE OF NATURAL RESOURCES State Parties shall promote the use of their natural resources in a sustainable and an environmentally friendly manner. ARTICLE 13 ENVIRONMENTAL MEASURES State Parties recognise that it is inappropriate to encourage investment by relaxing domestic health, safety or environmental measures and agree not to waive or otherwise derogate from, international treaties they have ratified, or offer to waive or otherwise derogate from, such measures as an encouragement for the establishment, acquisition, expansion or retention in their territories, of an investment. ARTICLE 14 RIGHT TO REGULATE Nothing in this Annex shall be construed as preventing a State Party from exercising its right to regulate in the public interest and to adopt, maintain or enforce any measure that it considers appropriate to ensure that investment activity is undertaken in a manner sensitive to health, safety or environmental concerns. ARTICLE 15 CAPITAL MOVEMENTS 1. State Parties shall encourage the free movement of capital. 32