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DEFINITION OF INVESTMENT
The term “investment” comprises every kind of asset, invested by an investor of one Contracting Party in the territory of the other Contracting Party, in accordance with the latter’s laws and regulations. This general definition is illustrated by a non exhaustive list of six groups of specific rights, including:
DEFINITION OF INVESTOR
The term “investor” includes any natural person who is a national of one of the Contracting Parties under its law. (Article I (2)).
The term “investor” comprises any legal person constituted and having its seat in the territory of one of the Contracting Parties, and having made investments in the territory of the other Contracting Party. (Article I (2) (b)).
Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)
Date of signature: May 25, 1995
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 II (1)).
Fair and Equitable Treatment
Yes. (Article III (1)).
Full Protection and Security
Yes, full legal protection for admitted investments. (Article III (2)).
Yes. Each Contracting Party shall not impair the management, maintenance, use, enjoyment or disposal through unjustified or discriminatory measures. (Article III (1)).
Yes, for admitted investments, each Contracting Party shall accord treatment no less favorable than that it grants to investments of its own nationals or those of third States. (Article III (2)).
Most-Favored Nation Treatment
Yes, for admitted investments, each Contracting Party shall accord treatment no less favorable than that it grants to investments of its own nationals or those of third State. (Article III (2)).
Notwithstanding the provisions of Article III (2), MFN treatment shall not apply to privileges accorded by each Contracting Party to investors of third States by virtue of their participation or association in a free trade agreement, customs union, common market or regional agreement. (Article III (3)).
Article III (2) shall not be interpreted as to oblige a Contracting Party to extend benefits of any taxation agreement to investors of the other Contracting Party. (Article III (4)).
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). (Article VII).
Investors of one Contracting Party suffering losses due to war or armed conflict, national emergency, revolt, insurrection or uprising 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, with regard to restitution, indemnification, compensation, or other settlement. These payments shall be transferable. (Article IV (2)).
TYPES OF PAYMENT
Yes. Each Contracting Party shall guarantee to investors of the other Contracting Party the unrestricted transfer of investments and returns (the capital shall be registered with the national entity responsible, and taxes shall be paid accordingly), in particular, but not exclusively:
Repayment of Loans
Yes. (Article V (1) (c)).
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), (e)).
CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER
Transfers shall be effected in a convertible currency, in accordance with the exchange rate in effect in the market on the date of transfer and in accordance with the law and regulations of the Contracting Party which has admitted the investment. (Article V (2)).
Transfers shall be effected at the exchange rate in effect in the market on the date of transfer and in accordance with the law and regulations of the Contracting Party which has admitted the investment. (Article V (2)).
Time of Transfer
Covered Expropriatory Measures
Expropriation, nationalization or measures which have a similar effect. (Article IV (1)).
Public Purpose and Non-Discrimination
Yes. (Article IV (1)).
Due Process of Law and Judicial Review
Yes. (Article IV (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 VIII(1)).
If it cannot be settled within six months, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article VIII (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
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 IX (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:
Election by the investor of either one of these procedures shall be definitive. (Article IX (2)).
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 IX (4)).
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