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DEFINITION OF INVESTMENT
The term “investment” comprises every kind of asset defined according to the host country’s laws and regulations. This general definition is illustrated by a non exhaustive list of five groups of specific rights, including:
DEFINITION OF INVESTOR
“National” of a Party comprises any natural person who is a national of that Party under its law. (Article 1 (2) (a)).
“National” of a Party comprises companies constituted under the law of one of the Contracting Parties, and having its seat in the territory of said Party, irrespective of whether or not its activities are directed at profit. (Article 1 (2) (b)).
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: January 28, 1994
Each Contracting Party shall admit, in its territory, investments of investors of the other Contracting Party, in accordance with its laws and regulations. (Article 3 (1)).
This Treaty shall not preclude either Party from prescribing special formalities in connection with the establishment of investments, but such formalities shall not impair the substance of any of the rights set forth in this Treaty. (Article 11 (2)).
Fair and Equitable Treatment
Yes. Each Contracting Party shall guarantee in its territory a fair and equitable treatment to investments of investors of the other Contracting Party. (Article 4 (2)).
Full Protection and Security
Each Contracting Party shall protect in its territory and in accordance with its laws and regulations investments made by investors of the other Contracting Party. (Article 4 (1)).
Yes. Each Contracting Party shall not impair with undue or discriminatory measures the management, maintenance, utilization, enjoyment, expansion, sale and liquidation of investments of investors of the other Contracting Party. Each Contracting Party shall grant the permits mentioned in Article 3 (2). (Article 4 (1)).
Yes. Each Contracting Party shall guarantee in its territory a fair and equitable treatment to investments of investors of the other Contracting Party. This treatment shall be no less favorable than that it grants to investments of its own nationals or those of investors of third States. (Article 4 (2)).
Most-Favored Nation Treatment
Yes. Each Contracting Party shall guarantee in its territory a fair and equitable treatment. This treatment shall be no less favorable than that it grants to investments of its own nationals or those of investors of third States. (Article 4 (2)).
MFN treatment shall not apply to privileges that a Contracting Party accords to investors of third States by virtue of its participation in a free trade area, customs union or common market. (Article 4 (3)).
Treatment accorded in Article 4 does not apply to the advantages that the Contracting Parties have offered to nationals or companies of third States in taxation agreements or agreements on tax matters. (Article 4 (4)).
Each Contracting Party that has admitted investments in its territory, shall grant, in accordance with its legislation, the permits necessary to these investments and those for the execution of contracts of licensing, technical, commercial or administrative assistance. Each Contracting Party shall facilitate, when required, the permits necessary for the activities of consultants or other qualified persons of other countries. (Article 3 (2)).
Nationals or companies of one Contracting Party, who suffer losses of their investments in the territory of the other Contracting Party due to a war or other armed conflicts, revolution, national state of emergency, rebellion, insurrection or uprising, shall be treated no less favorably than its own nationals or companies, or nationals or companies of any third State with respect to restitution, indemnifications, adjustments or other payments. These payments shall be freely transferable in accordance with Article 5. (Article 6 (3)).
TYPES OF PAYMENT
Yes. Each Contracting Party shall guarantee to investors of the other Contracting Party who have invested in its territory the free transfer of payments related to these investments, in particular:
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)).
CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER
Transfers shall be effected in a freely convertible currency, without delay. (Article 5 (2)).
Time of Transfer
Without delay. (Article 5 (2)).
Covered Expropriatory Measures
Expropriation, nationalization or measures which have a similar effect. (Article 6 (1)).
Public Purpose and Non-Discrimination
Yes. “Public use or social interest.” (Article 6 (1)).
Due Process of Law and Judicial Review
Yes. (Article 6 (1)).
Compensation Standard; Form and Time of Payment
Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall 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 will have three members.
Procedural Rules of the Tribunal
The arbitral tribunal shall determine its
PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS
Any dispute relating to the provisions of 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 8(1)).
If it was not possible to settle the dispute within a period of six months, it may be submitted, at the request of the investor:
ARBITRAL SETTLEMENT OF DISPUTES
In case the dispute has been submitted to the tribunals of the host party, the investor may not refer it to international arbitration unless:
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 8(5)).
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