This phrasing may be slightly deceptive, but in this instance the word "Party" specifically refers to the countries (and/or their respective government) signing

This phrasing may be slightly deceptive, but in this instance the word "Party" specifically refers to the countries (and/or their respective government) signing this agreement. All in all, it only says that a government cannot demand the source code to a piece of software that is being exported from another country. Although, they can still force a software developer in their own country to give up the source code to a piece of software. It goes on to add some exceptions but is otherwise very inconsequential. I am not a lawyer, but this a paraphrasing of an explanation given to me by someone who is a copyright/securities lawyer in one of the member countries (Canada).