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DEFINITION OF INVESTMENT
The term “investment” comprises any kind of asset held or invested, either directly, or indirectly through an investor of a third State, by an investor of one Contracting Party in the territory of the other Contracting Party, according to the latter’s laws and regulations. This general definition is illustrated by a non exhaustive list of five groups of specific rights, including:
DEFINITION OF INVESTOR
The term “investor” includes any natural person who makes the investment possessing the citizenship of or permanently residing in a Contracting Party in accordance with its laws. (Article I (b)(I)).
Provisions on transfer of funds and settlement of investment disputes shall not apply to investments made in the territory of one Contracting Party by natural persons who are nationals of the other Contracting Party if they have been domiciled in the host country for more than two years, unless it is proved that the investment was admitted from abroad. (Article XIV (2)).
The term “investor” includes:
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: November 5, 1991
Subject to its laws and regulations, each Contracting Party shall admit investments of investors of the other Contracting Party. (Article II (2)). This agreement shall not preclude either Contracting Party from prescribing laws and regulations in connection with the establishment of a new business enterprise or the acquisition of a business enterprise in its territory, provided that such laws and regulations are applied equally to all foreign investors. Decisions taken pursuant to such laws and regulations are not subject to the provisions of Articles X (Settlement of Disputes between an Investor and the Host Contracting Party) or XII (Disputes between Contracting Parties). (Article II (3)).
Fair and Equitable Treatment
Yes. Investments or returns of investors of either Contracting Party shall at all times be accorded fair and equitable treatment in accordance with principles of international law. (Article II (4)).
Full Protection and Security
Yes. Investments or returns of investors of either Contracting Party shall enjoy full protection and security in the territory of the other Contracting Party. (Article II (4)).
Yes. Each Contracting Party shall, to the extent possible and in accordance with its laws and regulations, grant to investments or returns of investors of the other Contracting Party treatment no less favorable than that which it grants to investments or returns of its own investors. (Article IV).
Most-Favored Nation Treatment
Yes. Each Contracting Party shall grant to investments or returns of investors of the other Contracting Party in its own territory, treatment no less favorable than that which it grants to investments or returns of investors of any third State. (Article III (1)). Each Contracting Party shall grant investors of the other Contracting Party, as regards their management, use, enjoyment, transfer or disposal of their investments or returns in its territory, treatment no less favorable than that which it grants to investors or any third State. (Article III (2)).
The provisions of this Agreement shall not be construed so as to oblige one Contracting Party to extend to the investors of the other Contracting Party the benefits of any treatment, preference or privilege resulting from:
When a matter is covered both by the provisions of this Agreement and any other international agreement to which both Contracting Parties are bound, nothing in this Agreement shall prevent an investor of one Contracting Party that has investments in the territory of the other Contracting Party from benefitting from the most favorable regime. (Article XIII (1)). Investors of one Contracting Party who suffer losses because their investments or returns in the territory of the other Contracting Party are affected by armed conflict, revolution, civil strife, national emergency or a natural disaster in that territory, shall be accorded by such latter Contracting Party, in respect of restitution, indemnification, compensation or other settlement, treatment consistent with international law and no less favorable than that it accords to its own investors or to investors of any third State. (Article VI).
TYPES OF PAYMENT
Yes. Each Contracting Party shall guarantee to an investor of the other Contracting Party the unrestricted transfer of investments and returns. Without limiting the generality of the foregoing, each Contracting Party shall also guarantee to the investor the unrestricted transfer of:
Repayment of Loans
Yes. (Article VIII (1) (a)).
Proceeds of the Total or Partial Liquidation of an Investment
Yes. (Article VIII (1) (b)).
Licenses and Other Fees
Other categories of Payment
Yes. (Article VIII (1) (c), (d)).
CONVERTIBILITY AND EXCHANGE RATES
Transfers shall be effected without delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed by the investor and the Contracting Party concerned and in accordance with the procedure established by that Contracting Party. (Article VIII (2)).
Unless otherwise agreed by the investor, transfers shall be made at the rate of exchange applicable on the date of transfer. (Article VIII (2)).
Time of Transfer
Transfers shall be effected without delay. (Article VIII (2)).
Covered Expropriatory Measures
Expropriation, nationalization or measures which have a similar effect. (Article VII (1)).
Public Purpose and Non-Discrimination
Yes. (Article VII (1)).
Due Process of Law and Judicial Review
Yes. (Article VII (1) (2)).
Compensation Standard; Form and Time of Payment
“Prompt, adequate and effective compensation” Compensation shall:
Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, whenever possible, be settled amicably through consultations. (Article XII (1)). If it cannot be settled through consultation, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article XII (2)).
Constitution of the Tribunal
An arbitral tribunal shall be constituted for each dispute.
Procedural Rules of the Tribunal
The arbitral tribunal shall determine its own procedure. Decisions of the tribunal shall be taken by a majority of votes and shall be binding on both Parties. The decision shall be rendered within six months of the appointment of the Chairman. (Article XII (5)).
PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS
Disputes which arise between an investor of one Party and the other Party with regard to an investment of the former, which have not been amicably settled, shall be submitted, at the request of one of the Parties involved, to the decision of the competent tribunal of the Party in whose territory the investment was made. (Article X (1)).
ARBITRAL SETTLEMENT OF DISPUTES
Forms of Arbitration
The arbitral tribunal shall decide the dispute in accordance with the provisions of the Agreement; with reference to the laws of the Contracting Party involved in the dispute; terms of any specific agreement concluded in relation to such an investment; and, principles of international law. (Article X(4)).
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