Communication from the Ministry of Foreign Affairs No. 181 / 1994 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Agreement between the Czech Republic and the Republic of Poland on the promotion and mutual protection of investments
Valid
International Treaty
Effective from 29.06.1994
Text versions:
28.09.1994
181
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that an Agreement between the Czech Republic and the Republic of Poland on the promotion and mutual protection of investments was signed in Budapest on 16 July 1993.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it.
The Agreement entered into force on 29 June 1994 pursuant to Article 12 (1) thereof.
The Czech version of the Agreement is hereby published at the same time.
AGREEMENT
between
The Czech Republic and the Republic of Poland on the promotion and mutual protection of investment
the Czech Republic and the Republic of Poland, hereinafter referred to as the "Contracting Parties',
led by the desire to develop economic cooperation between both States on the basis of equality and mutual benefit,
in order to promote and create favourable conditions for investment by investors of one Contracting Party in the territory of the other Contracting Party; and
Recognising that the promotion and mutual protection of investments in accordance with this Agreement will contribute to the business initiative in this field,
agree on the following:
Definitions
For the purposes of this Agreement:
1. The term "investment" refers to each asset value invested 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 other rights in rem, such as mortgages, mortgages, guarantees and similar rights;
(b) shares, deposits and bonds of companies or any other form of participation in companies;
(c) cash claims or claims on any performance having an economic value associated with the investment;
(d) intellectual property rights, including copyright, trade marks, patents, industrial designs, technological processes, knowhow, trade secrets, trade names and goodwill;
(e) any law resulting from a law or contract and any licence or licence issued under the law, including concessions for the exploration, extraction, cultivation or exploitation of natural resources.
Any change in the form in which values are invested shall not affect their assessment 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 the nationality of a Contracting Party in accordance with its law;
(b) The term "legal person" means, in respect of each Contracting Party, any company registered or established in accordance with its law and having its permanent 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, capital gains, shares, dividends, royalties and other charges.
Aid and investment protection
1. Each Party shall promote and create favourable conditions for investors from the other Party investing in its territory and shall allow such investments.
2. The investment of investors of one Contracting Party will always have proper and fair treatment and will 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 investment and investors' returns to the other Contracting Party treatment which is sound and fair and is no less favourable than that accorded to investment or income of its own investors or to investment or income of investors of any third State.
2. Each Contracting Party shall, in its territory, provide investors of the other Contracting Party with treatment not less favourable than that accorded to its own investors or to investors of any third State as regards the management, maintenance, use, use or use of such treatment.
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 the treatment, benefits or privileges which one Contracting Party may grant to investors of any third State pursuant to:
(a) any customs union or free trade zone or monetary union or similar international agreement or other forms of regional economic cooperation in which each Party participates or may participate; or
(b) any international agreements or arrangements relating wholly or principally to taxation.
Compensation for damage or loss
1. Where investment by investors of any Contracting Party suffers damage as a result of war, armed conflict, exceptional situation, riot, insurrection, mutiny or other similar events in the territory of the other Contracting Party, the Contracting Party in whose territory such investment has taken place shall provide the investor of the other Contracting Party with treatment, in terms of restitution, compensation, settlement or other settlement, no less favourable than that accorded to its own investors or investors of any third State.
2. Notwithstanding paragraph 1 of this Article, investors of one Contracting Party who have suffered damage or loss on any of the events referred to in the preceding paragraph within the territory of the other Contracting Party consisting of:
(a) seizure of their property by the armed forces or authorities of the other Contracting Party;
(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 fair and reasonable compensation shall be granted for damage or loss suffered during the occupation or as a result of the destruction of the property. The relevant payments shall be freely transferable without undue delay in freely convertible currency.
Expropriation
1. Investment by investors of any 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, except in the public interest. Expropriation will be carried out in accordance with the law, on a non-discriminatory basis and accompanied by provisions for payment of immediate, proportionate and effective compensation. Such compensation equal to the market value of the expropriated investment immediately before the expropriation or before the intended expropriation has become known to the public, including interest from the date of expropriation, shall be effected without undue delay and shall be freely transferable in freely convertible currency.
2. The investor concerned shall have the right to request urgent review of his case 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.
3. The provisions of paragraph 1 of this Article shall also apply in cases where a Contracting Party earns the assets of a company which has been registered or established in accordance with the applicable legal order in its territory and has its permanent seat in the territory of one of the Contracting Parties and in which the investors of the other Contracting Party own shares.
Transfers
1. The Contracting Parties shall ensure the transfer of investment-related payments or revenues. Transfers shall be made in freely convertible currency, without limitation and without 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 monetary income;
(c) the amounts to be recovered;
(d) royalties or other charges;
(e) proceeds from the sale or liquidation of the investment.
2. The income of natural persons shall be transferred in accordance with the legal order of the Contracting Party in whose territory the investment is made.
3. For the purposes of this Agreement, official rates applicable to current transactions at the date of the transfer will be used unless the investor agrees to another procedure.
Transfer of rights
Where one Contracting Party or its authorised Agency makes payment to its own investor on the basis 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 right of the investor to the contracting party or to the agency authorised by it which granted the payment, whether by law or by legal arrangement in that country; and
(b) that the contracting party or the agency authorised by it which provided the payment is entitled, by way of transfer of rights, to exercise the rights and claims of that investor and to assume the obligations relating to the investment.
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 settled by negotiation between the Parties in a dispute.
2. If a dispute between an investor of one Contracting Party and the other Contracting Party fails to resolve a dispute within six months, the investor shall be entitled to present the dispute 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 panel shall be final and binding on both parties in the dispute.
Dispute settlement between Contracting Parties
1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be dealt with through negotiation.
2. If the dispute is not resolved within six months, it shall be submitted to the arbitration panel at the request of any Contracting Party in accordance with the provisions of this Article.
3. The arbitration panel shall be established on a case-by-case basis as follows: within two months of receipt of the request for arbitration, each Contracting Party shall designate one member of the panel. These two members shall then select a citizen of a third State who, after approval by both Parties, will be appointed President of the Court. The President shall be appointed within three months of the date of designation of the other two members.
4. If the necessary appointment has not been carried out within one of the time limits referred to in paragraph 3 of this Article, they may be requested by the President of the International Court of Justice. If the President is a citizen of a Contracting Party or for any other reason unable to carry out this mandate, the Vice-President of the International Court of Justice shall be asked to be appointed. If the Vice-President is also a citizen of a Contracting Party or is unable to carry out this mandate, the oldest member of the International Court of Justice who is not a citizen of any Contracting Party shall be requested to be appointed.
5. The arbitration panel shall take its decisions by a majority vote. Such a decision is binding. Each Party shall pay the costs of its arbitrator and its participation in the arbitration procedure. The President's costs and other costs shall be borne by the Parties equally. The arbitration panel shall determine its own rules of procedure.
Application of other provisions and specific commitments
1. Where a question is addressed 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 of its investors owning investment in the territory of the other Contracting Party from making use of provisions 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 law is more favourable than that provided for in this Agreement, such favourable treatment shall be used.
Application of this Agreement
The provisions of this Agreement shall apply to investments made by investors of one Contracting Party in the territory of the other Contracting Party and to investments existing at the date of entry into force of this Agreement.
Entry into force, duration and termination
1. Each Contracting Party shall notify the other Contracting Party, through diplomatic channels, of the fulfilment of the constitutional requirements necessary for the entry into force of this Agreement. This Agreement shall enter into force 30 days after the date of subsequent notification.
2. This Agreement shall remain in force for a period of 10 years. If one of the Contracting Parties does not terminate this Agreement at least one year before the expiry of this 10-year period, this Agreement shall be extended for an unlimited period. It may then be denounced in writing by each of the Contracting Parties with one year notice.
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 to do so, they have signed this agreement.
Done at Budapest on 16.7.1993 in two original copies, each in the Czech and Polish languages, the two texts being equally authentic.
For the Czech Republic:
Václav Klaus v. r.
Prime Minister
For the Republic of Poland:
Hanna Suchocká v. r.
Prime Minister
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 181 / 1994 Coll., on the negotiation of the Agreement between the Czech Republic and the Republic of Poland on the promotion and mutual protection of investments |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.09.1994 |
|---|---|
| Effective from | 29.06.1994 |
| Effective until | - |
| Status | Valid |
Legal Areas:
International law
International public law
The regulation text is for informational purposes only.
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