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DEFINITION OF INVESTMENT
The term “investment” means any kind of asset owned or controlled 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 in accordance with the latter’s laws, and, in particular, though not exclusively, includes:
The term “investment” does not mean real estate or other property, tangible or intangible, not acquired in the expectation or used for the purpose of economic benefit or other business purposes. (Article 1 (a) (f).
DEFINITION OF INVESTOR
The term “investor” means:
The term “investor” means:
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: May 29, 1996
Each Contracting Party shall permit establishment of a new business enterprise or acquisition of an existing business enterprise or a share of such enterprise by investors or prospective investors of the other Contracting Party on a basis no less favorable than that which, in like circumstances, it permits such acquisition or establishment by:
Decisions by either Contracting Party,
pursuant to measures not inconsistent with this Agreement, as to whether
or not to permit an acquisition shall not be subject to the provisions of
Articles XIII [Settlement of Disputes between an investor and the host
Contracting Party] or XV [Disputes between the Contracting Parties] of
this Agreement. (Article II (4) (a)).
Neither Contracting Party may impose any of the following requirements in connection with permitting the establishment or acquisition of an investment or enforce any of the following requirements in connection with the subsequent regulation of that investment:
The provisions of Articles II [Establishment, Acquisition and Protection of Investment], III [MFN Treatment after Establishment and Exceptions to MFN], 4 [National Treatment after Establishment and Exceptions to National Treatment] and V [Other Measures] do not apply to:
Investments in cultural industries are exempt from the provisions of this Agreement. “Cultural industries” means natural persons or enterprise engaged in any of the following activities:
Fair and Equitable Treatment
Yes. Investments of nationals and companies of the other Contracting Party shall receive, in all cases, fair and equitable treatment in accordance with the rules and principles of international law. (Article 2 (2)).
Full Protection and Security
Yes. Full protection and security. (Article 2 (2)).
Yes. None of the Contracting Parties shall use arbitrary and discriminatory measures with respect to the management, maintenance, use, enjoyment or disposal of investments in its territory of nationals or companies of the other Contracting Party. (Article 2 (2)).
Yes. None of the Contracting Parties shall submit investments or returns of nationals or companies of the other Contracting Party to a treatment less favorable than that it grants to investments or returns of its own nationals or companies, or investments or returns of nationals or companies of any third State. (Article 3 (1)).
Most-Favored Nation Treatment
Yes. None of the Contracting Parties shall submit investments or returns of nationals or companies of the other Contracting Party to a treatment less favorable than that it grants to investments or returns of its own nationals or companies or investments or returns of nationals or companies of any third State. (Article 3 (1)).
None of the Contracting Parties shall submit investments or returns of nationals or companies of the other Contracting Party, with respect to the management, maintenance, use, enjoyment or disposal of these investments, to a treatment less favorable than that it grants to investments or returns of nationals or companies of any third State. (Article 3 (2)).
Contracting Parties are not obliged to extend the benefits of national treatment and most-favored-nation treatment to nationals or companies of the other Contracting Party when these benefits derive from:
If the provisions in the legislation of a Contracting Party, or if the existing or future obligations under international law between the two Contracting Parties, or if an agreement between an investor of a Contracting Party and the other Contracting Party include provisions granting to investments of investors of the first Contracting Party a more favorable treatment, these provisions shall prevail if they are more favorable. (Art. 11).
Each Contracting Party shall observe any obligation it has entered into with respect to the treatment of investments of investors or companies of the other Contracting Party. (Article 2 (2)).
Investors of a Contracting Party suffering losses with respect to their investments in the territory of the other Contracting Party, due to war or other armed conflicts, national emergency, revolt, insurrection or uprising, shall receive treatment, in regard to restitution, compensation or other settlement, no less favorable than that accorded by the latter Contracting Party to its own investors or investors of any third State. (Article 4 (1)).
Article 4 (1) shall not be interpreted to relieve a Contracting Party from its obligations, by virtue of international law, to grant restitution or compensation for losses of nationals or companies of the other Contracting Party as a result of requisition or destruction of their property by its forces or authorities. (Art. 4 (2)).
TYPES OF PAYMENT
Each Contracting Party shall guarantee, with respect to the investments of nationals or companies of the other Contracting Party, the unrestricted transfer of investments and returns. (Article 6).
Repayment of Loans
Proceeds of the Total or Partial Liquidation of an Investment
Licenses and Other Fees
Other Categories of Payment
CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER
Transfers shall be effected in the convertible currency in which the investment was originally made or in any other convertible currency agreed by the investor and the Contracting Party concerned. (Article 6).
Unless otherwise agreed, transfers shall be effected at the applicable rate on the date of transfer, in accordance with the regulations in effect with respect to the exchange rate. (Article 6).
Time of Transfer
Transfers shall be effected without delay. (Article 6).
Covered Expropriatory Measures
Expropriation, nationalization or measures which have a similar effect. (Article 5 (1)).
Public Purpose and Non-Discrimination
Yes. “...public interest linked to internal needs of (the expropriating host Party) ...” (Article 5 (1)).
Due Process of Law and Judicial Review
Yes. (Article 5 (1)).
Compensation Standard; Form and Time of Payment
“Prompt, adequate and effective compensation”
Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, whenever possible, be settled through diplomatic channels. (Article 9 (1)).
If it cannot be settled, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article 9 (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
PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS
No reference to prearbitral consultations or negotiations. The dispute is referred directly to ICSID arbitration.
ARBITRAL SETTLEMENT OF DISPUTES
Consent set out explicitly in Article 8 (4).
Forms of Arbitration
Any dispute between a Party and a national or company of the other Party concerning the former’s obligations pursuant to the Agreement in relation to an investment, shall, at the request of the investor, be submitted to ICSID for settlement through consultation or arbitration. In the interim period, while Venezuela has not acceded to the ICSID Convention, the dispute shall be submitted to the ICSID Additional Facility. If the Facility is not available, the investor will have the right to submit the dispute to arbitration in accordance with UNCITRAL Arbitration Rules. (Article 8 (1)(2)).
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