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DEFINITION OF INVESTMENT
The term “investment” comprises every kind of asset, such as goods and rights, acquired according to the laws of the host country. This general definition is illustrated by a non exhaustive list of five groups of specific rights, including:
DEFINITION OF INVESTOR
The term “investor” refers to the natural persons who are nationals of the Contracting Party where the investment originates under the law of that Contracting Party. (Article I (1) (I)).
The term “investor” comprises legal persons, including companies or other organizations, constituted under the laws of the Contracting Party where the investment originates and having its seat in its territory. (Article I (1) (I)).
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: March 22, 1994
Each Contracting Party shall foster, in its territory, investments of investors of the other Contracting Party, and shall admit these investments in accordance with its legislation. (Article II (1)).
Each Contracting Party, in accordance with its legislation, shall give the required authorizations for the realization of these investments. It shall permit contracts of licensing with respect to manufacturing; technical, commercial, financial and administrative assistance; and grant required authorizations for the activities of professionals and consultants under contract with investors of the other Contracting Party. (Article II (2)).
Fair and Equitable Treatment
Yes, in accordance with the principles of international law. (Article III (2)).
Full Protection and Security
Each Party shall protect, in its territory, investments made, in accordance with its legislation, by investors of the other Contracting Party. (Article III (1)).
Yes. Each Contracting Party shall not create obstacles with unjustified and arbitrary measures with respect to the management, maintenance, utilization, usufruct, extension, sale or disposal of investments of investors of the other Contracting Party. (Article III (1)).
Each Contracting Party shall give a treatment that is non-discriminatory. (Article III (2)).
Yes. Each Contracting Party shall accord to investments of investors of the other Contracting Party treatment no less favorable than that it accords to investments of its nationals. (Article III (3)).
Most-Favored Nation Treatment
Yes. The treatment referred to in Article III (2), i.e. non-discriminatory and fair and equitable, shall not be less favorable than that a Contracting Party grants to investments (of same nature) of investors of a third State. (Article III (4)).
The treatment accorded in Article III (4) does not extend to concessions each Contracting Party accords to investors of third States as a result of its participation in a free trade area, customs union, common market or regional integration agreement. (Article III (5)).
The treatment referred to in Article III does not extend to reductions of fiscal exemptions and other incentives granted by a Contracting Party to investors of third States as a result of a taxation agreement. (Article III (6)).
With respect to national treatment, the Government of Brazil reserves the right to:
These conditions will cease to be in force if the above-mentioned articles of the Brazilian Constitution are repealed due to amendments or reform to the Constitution. The Government of Chile, in accordance with Article 19, No 24 of the Chilean Political Constitution and Articles 7 and 8 of the Mining Code, declares that the exploration and exploitation of hydrocarbons, liquid and gas, shall only be done directly by the State or its enterprises, or via administrative concessions or special contracts of operation, under conditions set by the President of the Republic of Chile for each case with a Supreme Decree. (Paragraph 2 of the Protocol).
Investors of a Contracting Party suffering losses with respect to their investments in the territory of the other Contracting Party due to any armed conflict, including war, national emergency, civil disturbances or other similar events shall not be treated less favorably than investors of this Contracting Party or those of any third State with regard to reparation, indemnification, compensation or other settlements. (Article IV (4)).
TYPES OF PAYMENT
Yes. Each Contracting Party shall allow the free transfer of payments related to investments effected in its territory by the investors of the other Contracting Party, in particular, but not exclusively:
Repayment of Loans
Yes. (Article V (1) (e)).
Proceeds of the Total or Partial Liquidation of an Investment
Yes. (Article V (1) (d)).
Licenses and Other Fees
Other Categories of Payment
Yes. (Article V (1) (a), (c), (f)).
CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER
Transfers shall be authorized in the currency in which the investment was made or when requested by the investor in another convertible currency. (Article V (3)).
Time of Transfer
Transfers shall be effected without delay. (Article V (2)).
The expression "without delay" means the normal period of time necessary to fulfill the legal and regulatory demands for a transfer. Such period of time shall not exceed six months, and shall begin at the time of the fulfillment of these demands.
Transfers relative to investments made in the Special Program for the Conversion of the External Debt of Chile and Brazil are subject to special rules. (Protocol).
Notwithstanding Article V (1), the Government of Chile reserves the right to allow the repatriation of capital in a period of time established in its legislation, which in no case could exceed one year after the investment has been made. (Protocol).
Covered Expropriatory Measures
Deprivation of an investment (direct or indirect). (Article IV (1)).
Public Purpose and Non-Discrimination
Yes. “Public use or national interest.” (Article IV (2)).
Due Process of Law and Judicial Review
Yes. (Article IV (3)).
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 amicably. (Article VII (1)).
If it cannot be settled within six months, the dispute may, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article VII (2)).
Constitution of the Tribunal
The arbitral tribunal shall be constituted as follows:
Procedural Rules of the Tribunal
The arbitral tribunal shall determine its
The tribunal shall decide on the basis of the law, the provisions of the Agreement and of other agreements concluded by the Contracting Parties, as well as on the principles of international law. (Article VII (5)).
PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS
Any dispute relating to the Agreement between an investor of one Contracting Party and the other Contracting Party will, to the extent possible, be settled through amicable consultations. (Article VIII (1)).
If it was not possible to settle the dispute within a period of six months, the investor may choose to submit it:
Election by the investor of either one of these procedures shall be definitive and irreversible. (Article VIII (2)(3)).
ARBITRAL SETTLEMENT OF DISPUTES
Forms of Arbitration
Where the dispute is referred to international arbitration, the investor may refer the dispute to:
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 VIII (5)).
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