Communication from the Ministry of Foreign Affairs No. 104 / 1999 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Agreement between the Government of the Czech Republic and the Government of Mongolia on the promotion and mutual protection of investments
Valid
International Treaty
Effective from 07.05.1999
Text versions:
03.06.1999
104
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that the Agreement between the Government of the Czech Republic and the Government of Mongolia on the promotion and mutual protection of investments was signed in Ulanbátar on 13 February 1998.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified the Agreement.
The Agreement entered into force on 7 May 1999 pursuant to Article 12 (1) thereof.
The Czech version of the Agreement is hereby published at the same time. The English version, which is decisive for its interpretation, can be consulted by the Ministry of Foreign Affairs and the Ministry of Finance.
AGREEMENT
between the Government of the Czech Republic and the Government of Mongolia on the promotion and mutual protection of investments
The Government of the Czech Republic and the Government of Mongolia ("the Contracting Parties'),
led by the desire to develop economic cooperation for the mutual benefit of both States,
DESIRING to create and maintain favourable conditions for investment by investors of one State in the territory of the other State; and
Recognising that the promotion and mutual protection of investments within the meaning of this Agreement encourages business initiatives in this area,
agree on the following:
Definitions
For the purposes of this Agreement:
1. The term "investment" refers to any asset value invested in connection with economic activities by an investor of one Contracting Party in the territory of the other Contracting Party in accordance with the law of the other Contracting Party and includes in particular, but not exclusively:
(a) movable and immovable property, and any other rights in rem, such as mortgages, mortgages, guarantees and similar rights;
(b) shares, bonds, unsecured bonds or any other form of participation in companies;
(c) cash claims or claims on any performance under a contract having a financial value associated with the investment;
(d) intellectual property rights, including copyright, trademark rights, patents, industrial designs, technical procedures, know-how, business secrets, business names and goodwill, associated with investment;
(e) any rights arising from a law or contractual arrangement, licence and licence granted under the law, including concessions for exploration, extraction, cultivation or exploitation of natural resources.
Any change in the form in which values are invested shall not affect their nature as investments.
2. The term "investor" shall mean any natural or legal person investing in the territory of the other Contracting Party.
(a) the term "natural person" shall mean any natural person having citizenship of one of the Contracting Parties in accordance with its laws.
(b) The term "legal person" means, in respect of both Contracting Parties, any company registered or established in accordance with its laws and recognised by them as a legal person having its registered office in the territory of one of the Contracting Parties.
3. The term "income" shall mean the amounts resulting from the investment and shall include in particular, but not exclusively, profits, interest on loans, capital gains, shares, dividends, royalties or other charges.
4. The term "territory" means the territory of the Czech Republic and the territory of Mongolia, as defined in their legal systems, over which they exercise sovereignty, sovereignty or jurisdiction in accordance with international law.
Aid and investment protection
1. Each Contracting Party shall promote and create favourable conditions for investors of the other Contracting Party to invest in its territory and shall allow such investments, in accordance with its own law.
2. In any event, investors' investors' investors shall be granted proper and fair treatment and shall enjoy full protection and security in the territory of the other Contracting Party.
National treatment and most favoured nation clause
1. Each Contracting Party shall grant on its territory to the investors' investments and returns of the other Contracting Party treatment which is sound and fair and is no less favourable than that which it provides to its own investors or to the investors' investments and returns of any third State if it is more favourable.
2. Each Contracting Party shall, in its territory, grant to investors of the other Contracting Party, treatment which is fair and fair and not less favourable than that which it provides to its own investors or to investors of any third State where it is more favourable.
3. The provisions of paragraphs 1 and 2 of this Article shall not be construed as obliging one Contracting Party to grant to investors of the other Contracting Party such treatment, benefits or privileges as may be granted by one Contracting Party on the basis of:
(a) any customs union or free trade zone or monetary union or similar international agreement leading to any Union or institution or other form of regional cooperation of which one of the Contracting Parties is or may be a member;
(b) any international agreements or arrangements relating wholly or principally to taxation.
Compensation
1. Where investment by investors of one or the other Contracting Party suffers damage as a result of war, armed conflict, exceptional situation, riot, insurrection, mutiny or other similar events within the territory of the other Contracting Party, that Contracting Party shall provide them with treatment no less favourable than that accorded to its own investors or investors of any third State as regards compensation, compensation, compensation, settlement or other settlement.
2. Notwithstanding paragraph 1 of this Article, investors of one Contracting Party who, in any event referred to in the preceding paragraph, suffer damage in the territory of the other Contracting Party shall be:
(a) the seizure of their property by the armed forces or authorities of the other Contracting Party; or
(b) the destruction of their property by the armed forces or authorities of the other Contracting Party, which was not caused by combat actions or was not caused by the necessity of the situation;
a restitution or fair and reasonable compensation for damage suffered during the occupation or as a result of the destruction of property. The resulting payments shall be freely transferable in freely convertible currency without delay.
Expropriation
1. Investment by investors of either Contracting Party shall not be nationalised, expropriated or subject to measures having a similar effect to that of nationalisation or expropriation ("expropriation ') in the territory of the other Contracting Party, with the exception of the public interest. Expropriation will be carried out under the law, on a non-discriminatory basis and will be accompanied by measures to pay immediate, proportionate and effective compensation. Such compensation shall be equal to the value of the expropriated investment immediately before the expropriation or before the intended expropriation has become known to the public, shall include interest from the date of expropriation, shall be effected without delay, shall be immediately feasible and freely transferable in freely convertible currency.
2. The investor concerned shall have the right to review his case urgently and to evaluate his investment by a judicial or other independent body of the Contracting Party in accordance with the principles contained in this Article.
Transfers
1. The Contracting Parties shall ensure the transfer of payments linked to investments and revenues. Transfers shall be made in freely convertible currency without any restrictions or undue delay. Such transfers shall include, in particular, but not exclusively:
(a) capital and additional amounts to maintain or increase the investment;
(b) profits, interest, dividends and other current income;
(c) the amounts to be recovered;
(d) royalties or other charges;
(e) proceeds from the sale or liquidation of the investment;
(f) the income of foreign employees employed and authorised to work in connection with an investment in the territory of the other Contracting Party.
2. For the purposes of this Agreement, the prevailing rate for current transactions at the transfer date will be used as a conversion rate unless otherwise agreed.
3. Transfers carried out "without undue delay 'within the meaning of paragraph 1 of this Article shall be deemed to have been made within the time limit normally necessary for such transfers to be carried out. Such a period shall under no circumstances exceed two months.
Transfer of rights
1. Where one Contracting Party or the Agency authorised by a Contracting Party makes payment to its own investor on the grounds of a guarantee it has provided in relation to an investment in the territory of the other Contracting Party, the other Contracting Party shall recognise:
(a) the transfer of any right or claim of an investor to a Contracting Party or to an agency authorised by a Contracting Party, whether by law or by legal arrangement in that country; and
(b) that a Contracting Party or an agency authorised by a Contracting Party is entitled, by way of transfer of rights, to exercise the rights and rights of that investor and to assume the obligations relating to the investment.
2. The transferred rights or rights shall not exceed the original rights or rights of the investor.
Settlement of investment disputes between a Party and an investor of the other Party
1. Any dispute which may arise between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of that other Contracting Party shall be the subject of a dispute between the Parties.
2. If the dispute between the investor of one Contracting Party and the other Contracting Party is not settled in this way within six months of the date of the written notification of the claim, the investor shall be entitled to present the dispute to resolve either:
(a) the International Investment Dispute Settlement Centre (ICSID), taking into account the applicable provisions of the Investment Dispute Settlement Convention between States and citizens of other States, open for signature in Washington, D. C. 18 March 1965, where both Parties are Parties to this Convention; or
(b) an arbitrator or an international arbitration panel set up on an ad hoc basis, established under the arbitration rules of the United Nations International Trade Law Commission (UNCITRAL). The Parties in the dispute may agree in writing to amend these rules. The arbitration findings are final and binding on both parties in the dispute and enforceable in accordance with domestic legislation.
Dispute settlement between Contracting Parties
1. Disputes between Contracting Parties concerning the interpretation or application of this Agreement shall, where possible, be resolved by consultations or negotiations.
2. If the dispute cannot be resolved within six months, it shall be submitted to the arbitration panel at the request of one of the Contracting Parties in accordance with the provisions of this Article.
3. The arbitration panel shall be established in the following manner for each individual case. Each Contracting Party shall designate one arbitrator within two months of receipt of the request for arbitration. The two arbitrators shall then select a citizen of a third State who, with the agreement of the two Parties, will be appointed President of the Court (hereinafter referred to as "the President '). The President shall be appointed within three months of the date of the appointment of the two arbitrators.
4. If the necessary appointment has not been carried out within one of the time limits referred to in paragraph 3 of this Article, the President of the International Court of Justice may be asked to carry out the appointment. If the President is a citizen of a Contracting Party or for any other reason is unable to carry out this act, the Vice-President shall be requested to be appointed. If the Vice-President is also a citizen of a Contracting Party or is unable to carry out this act, the oldest member of the International Court of Justice who is not a citizen of any Contracting Party shall be requested to make the necessary appointment.
5. The arbitration panel shall take its decision by a majority vote. Such a decision is binding. Each Party shall pay only the costs of its arbitrator and its participation in the arbitration procedure; the costs of the Chair and other expenditure shall be borne equally by the Parties. The arbitration panel shall determine its own rules of procedure.
Application of other provisions and specific commitments
1. Where a question is dealt with simultaneously by this Agreement and by another international agreement to which both Parties are parties, nothing in this Agreement shall prevent any Contracting Party or any investor of the same Party from making use of any rules which are more favourable to it.
2. If the treatment granted by one Contracting Party to investors of the other Contracting Party in accordance with its legal order or other specific contractual provisions is more favourable than that provided for by this Agreement, such favourable treatment shall be granted.
Application of the Agreement
The provisions of this Agreement shall apply to future investments made by investors of one Contracting Party in the territory of the other Contracting Party and also to investments existing in accordance with the laws of the Contracting Parties at the date of entry into force of this Agreement. However, the provisions of this Agreement shall not apply to actions brought as a result of events which occurred before its entry into force or to actions which were resolved before its entry into force.
Entry into force, duration and termination
1. Each Contracting Party shall notify the other Contracting Party of the fulfilment of its legal order for the entry into force of this Agreement. This Agreement shall enter into force on the date of the second notification.
2. This Agreement shall remain in force for a period of 10 years. It shall then remain in force until the expiry of the 12-month period running from the date on which one of the Contracting Parties notifies the other Contracting Party in writing of its intention to terminate the Agreement.
3. For investments made before the expiry of this Agreement, the provisions of this Agreement shall remain effective for a period of 10 years from the date of expiry.
In order to prove the signature below, duly authorised, they signed this agreement.
Dane in Ulanbátar on 13 February 1998 in duplicate in Czech, Mongolian and English. In the event of any discrepancy in the interpretation, the English text is decisive.
For the Government of the Czech Republic:
Ing. Alexandr Karych v. r.
extraordinary and authorised ambassador
For the Government of Mongolia:
Shucherín Altangerel v. r.
Minister for External Relations
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 104 / 1999 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of Mongolia on the promotion and mutual protection of investments |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 03.06.1999 |
|---|---|
| Effective from | 07.05.1999 |
| Effective until | - |
| Status | Valid |
Legal Areas:
International law
International public law
The regulation text is for informational purposes only.
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