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DEFINITION OF INVESTMENT
The term “investment” comprises every kind of asset. This general definition is illustrated by a non exhaustive list of five groups of specific rights, including:
DEFINITION OF INVESTOR
The term “investor” comprises any natural person investing in one of the Contracting Parties who is a national of the other Contracting Party under its law. (Article 1 (1) (a)).
The term “investor” comprises any legal person constituted or otherwise duly organized under the law of one of the Contracting Parties, that has its seat and engages in effective economic activities in the territory of said Party. (Article 1 (1)(b)).
It also refers to legal persons constituted under the law of any country, if they are effectively controlled by investors as defined in Article 1 (1) (a) and (b). (Article 1 (1)(c)).
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: April 2, 1993
Each Contracting Party shall promote, in its territory, investments of investors of the other Contracting Party, and shall admit such investments in accordance with its laws and regulations. (Article 3 (1)).
Each Contracting Party, after having admitted an investment in its territory, and in accordance with its legislation, shall facilitate the obtention of the necessary permits with respect to this investment, including those for the execution of contracts of licensing; technical, commercial, and administrative assistance; and also for the activities of consultants and other qualified persons (foreigners). (Article 3 (2)).
Fair and Equitable Treatment
Yes, in accordance with international law. (Article 4 (2)).
Full Protection and Security
Each Party shall protect investments made, in its territory, according to its laws and regulations. (Article 4 (1)).
Yes. Each Contracting Party will not impair by arbitrary and discriminatory measures the management, maintenance, utilization, enjoyment, extension, sale or liquidation of investments of investors of the other Contracting Party. (Article 4 (1)).
Yes. The treatment accorded by each Contracting Party to investments of investors of the other Contracting Party shall be no less favorable than that it grants to its own investors or investors of any third State, whichever is more favorable. (Article 4 (2)).
Most-Favored Nation Treatment
Yes. The treatment accorded by each Contracting Party to investments of investors of the other Contracting Party shall not be less favorable than that it grants to its own investors or investors of any third State, whichever is more favorable. (Article 4 (2)).
A Contracting Party is not obliged to extend to investments of investors of the other Contracting Party benefits it receives as a result of a free trade agreement, customs union, or common market or similar agreement, or by virtue of a taxation agreement. (Article 4 (3)).
Investors of one Contracting Party suffering losses due to war or armed conflict, revolution, national emergency, revolt, insurrection or civil disturbances in the territory of the other Contracting Party shall not be treated less favorably than investors of this Contracting Party or those of any third State, whichever is the more favorable, in regard of restitution, compensation, indemnification or other settlement. (Article 6 (2)).
Once a Contracting Party has admitted an investment in its territory, it will facilitate, in accordance with its laws and regulations, the obtaining of permits necessary for this investment, including those for the execution of licensing contracts, technical, commercial or administrative assistance; and those for the activities of consultants and other people of other nationalities. (Article 3 (2)).
TYPES OF PAYMENT
Yes. Each Contracting Party shall guarantee to investors of the other Contracting Party the transfer, without delay, in freely convertible currency of the payments related to an investment, particularly:
Repayment of Loans
Yes. (Article 5 (1) (b)).
Proceeds of the Total or Partial Liquidation of an Investment
Yes. (Article 5 (1) (f)).
Licenses and Other Fees
Other Categories of Payment
Yes. (Article 5 (1) (c), (d), (e), (g)).
CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER
Each Contracting Party shall guarantee to investors of the other Contracting Party the transfer, without delay, in a freely convertible currency of the payments related to an investment. (Article 5 (1)).
Time of Transfer
Without delay. (Article 5 (1)).
The expression "without delay" means the normal period of time necessary to fulfill the formalities for the transfer. This period of time shall begin the day when the request, accompanied by the necessary documents, has been presented but shall, in no case, exceed two months. (Article 5 (2)).
Notwithstanding the provisions of Article 5, the Contracting Parties reserve the right to allow the repatriation of capital in the period of time established in their respective legislation; in no case, shall it be more than three years since the investment had been made by the investor. (Protocol).
While the Programs for the Conversion of the External Debt are still in effect, the Contracting Parties shall apply the rules of these programs with respect to the period of time for repatriation. (Protocol).
Covered Expropriatory Measures
Expropriation, nationalization or measures which have a similar effect. (Article 6 (1)).
Public Purpose and Non-Discrimination
Yes. No mention to “public purpose.” (Article 6 (1)).
Due Process of Law and Judicial Review
Yes. (Article 6 (1)).
Compensation Standard; Form and Time of Payment
“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 within twelve months, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal. (Article 9 (2)).
Constitution of the Tribunal
The arbitral tribunal shall have three members.
Procedural Rules of the Tribunal
The arbitral tribunal shall determine its
PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS
In the event of a dispute relating to an investment under the Agreement between an investor of one Contracting Party and the other Contracting Party, consultations will be held to find an amicable solution. (Article 8(1)).
If it was not possible to settle the dispute, the investor may submit it to:
Election by the investor of either one of these procedures shall be definitive. (Article 8(2)).
ARBITRAL SETTLEMENT OF DISPUTES
Contracting Parties consent to submit to international arbitration any dispute concerning an investment under the Agreement. (Article 8(4)).
Forms of Arbitration
In case of international arbitration, the dispute shall be submitted to ICSID. (Article 8 (2)).
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 8(7)).
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