Communication from the Ministry of Foreign Affairs No 187 / 1997 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Agreement between the Czech and Slovak Federal Republic and the Republic of Turkey on mutual support and protection of investment
Valid
International Treaty
Effective from 01.08.1997
Text versions:
21.08.1997
187
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that the Agreement between the Czech and Slovak Federal Republic and the Republic of Turkey on mutual support and protection of investment was signed in Ankara on 30 April 1992.
In exchange for the notes of the Ministry of Foreign Affairs of the Czech Republic of 13 September 1993 and of the Embassy of the Republic of Turkey in Prague of 8 February 1994, the Contracting Parties agree that the Agreement between the Czech and Slovak Federal Republic and the Republic of Turkey on mutual support and protection of investments of 30 April 1992 will be deemed to have been concluded between the Czech Republic and the Republic of Turkey.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it.
The Agreement entered into force on 1 August 1997 on the basis of Article X (1) thereof.
The Czech version of the Agreement is hereby published at the same time. The English version of the Agreement, which is relevant for its interpretation, can be consulted by the Ministry of Foreign Affairs and the Ministry of Finance.
AGREEMENT
between the Czech and Slovak Federal Republic
and
Republic of Turkey
on mutual support and investment protection
the Czech and Slovak Federal Republic and the Republic of Turkey, hereinafter referred to as the Contracting Parties,
wishing to promote greater mutual economic cooperation, in particular as regards investment by investors of one Contracting Party in the territory of the other Contracting Party,
Recognising that the treatment arrangements to be granted to such investments will promote the flow of capital and technology and the economic development of the Contracting Parties,
agreeing that fair and equal treatment of investments is desirable for maintaining a stable investment system and for the maximum efficient use of economic resources; and
decisions to conclude an agreement on support and mutual protection of investments,
they have agreed as follows:
Definitions
For the purposes of this Agreement:
1. The term "investor" refers to:
(a) natural persons who have citizenship of one Contracting Party under its applicable law;
(b) legal persons, such as corporations, firms or companies, established or constituted under the laws in force of one Contracting Party and established in the territory of that Contracting Party.
2. (a) The term "investment" refers to all types of assets invested by an investor of one Contracting Party in the territory of the other Contracting Party, provided that the investment was made in accordance with the law of the other Contracting Party and includes in particular:
(i) shares and bonds of the company and any other form of participation in the company;
(ii) reinvested income, claims on cash or other rights having a financial value and relating to the investment;
(iii) movable and immovable property and all other rights such as mortgages, collateral, guarantees,
(iv) intellectual property rights and industrial rights (such as patents, trademarks, trade names), technical procedures, industrial designs, know- how and goodwill,
(v) business authorisations resulting from law or contract, including authorisations relating to natural resources.
(b) The term refers to all direct investments made by an investor of one Contracting Party in the territory of the other Contracting Party after 1 January 1950.
3. The term "income" means the amounts earned from the investment and includes, in particular, profit, interest and dividends.
Aid and investment protection
1. Each Contracting Party shall, in accordance with its own rules of law, authorise investments and activities linked thereto on the basis of no less favourable than that accorded to investors of any third State in similar situations.
2. Each Contracting Party shall grant such investments, upon setting up such investments, no less favourable than that accorded in similar situations to the investments of its own investors or to the investments of any third State that is most favourable.
3. In accordance with the laws of the Contracting Parties concerning the entry, residence and employment of foreigners:
(a) the citizens of any Contracting Party will be able to enter and reside in the territory of the other Contracting Party in order to establish, develop, manage or consult on the operation of the investment in which such citizens or investors of the Contracting Party employing them have entered and / or are planning to enter the necessary part of the capital or the necessary value of other resources;
(b) companies legally established in accordance with the laws of one Contracting Party which are investors of the other Contracting Party shall be allowed to employ management and technical staff at their choice, irrespective of their nationality.
4. The provisions of this Article shall not apply to the following agreements concluded by either Party:
(a) concerning a customs union, regional economic organisation or similar international agreements already in existence or in the future;
(b) any international agreement or convention relating to wholly or mainly taxes.
Expropriation and replacement
1. Investment shall not be expropriated, nationalised or subject, directly or indirectly, to measures having the same result, with the exception of measures taken in the public interest, in a non-discriminatory manner, on the basis of payment of an immediate, proportionate and effective refund and in accordance with the legal procedure and general principles of treatment referred to in Article II of this Agreement.
2. The compensation must correspond to the actual market price of the expropriated investment at the time the expropriation took place or became known. The refund shall be paid without delay in an convertible currency and shall be freely transferable. In case of delay, the payment shall be remunerated.
(3) Investors of any Contracting Party whose investment will suffer damage in the territory of the other Contracting Party as a result of war, rebellion, civil unrest or other similar events shall be treated no less favourably than that accorded to their own investors or investors of any third country which is the most favourable with regard to measures taken in relation to such damage.
Transfers
1. Each Contracting Party shall freely authorise all transfers relating to the investment and without undue delay to and from its territory. Such transfers shall include in particular:
(a) revenue;
(b) profits from the sale of all or part of the investment;
(c) refunds as referred to in Article III;
(d) repayments of principal and interest resulting from loans contracted in connection with investments;
(e) payments, wages and other compensation to citizens of one Contracting Party who have obtained in the territory of the other Contracting Party an appropriate work permit in connection with the investment;
(f) payments related to the investment dispute.
2. Transfers shall be made in the freely convertible currency in which the investment was made or in the freely convertible currency approved by the investor at the rate in force on the date of the transfer.
Subsidies
1. Where the investment of an investor of one Contracting Party is insured against non-commercial risks by a legal system, the other Contracting Party shall recognise any subrogation of the insurer resulting from the insurance contract.
2. The insurer may not exercise rights other than those which belong to the investor.
3. Disputes between a Contracting Party and an insurer shall be settled in accordance with the provisions of Article VIII of this Agreement.
Taxes
Each Party shall endeavour, as regards its tax policy, to ensure fair and impartial treatment of investors of the other Party.
Consultation
The Parties shall agree, at the request of either Party, to consult promptly to resolve any dispute concerning the Agreement or to discuss the interpretation or application of the Agreement.
Settlement of disputes between one Party and the investor of the other Party
1. Disputes between one Contracting Party and the investor of the other Contracting Party concerning the investment shall be notified in writing, including detailed information, to the Contracting Party in whose territory the investment is located. Where possible, the investor and the party concerned shall make efforts to resolve these disputes in good faith through consultation and negotiation.
2. If disputes cannot be resolved in this way, the dispute may be submitted at the choice of the investor:
(a) an ad hoc arbitration panel pursuant to the UN International Trade Law (UNCITRAL) Arbitration Rules;
(b) the International Investment Dispute Settlement Centre (ICSID) established by the Investment Dispute Settlement Convention between States and citizens of other States;
at any time after the expiry of the one-year period following the occurrence of the dispute, provided that the judgment has not been delivered where the investor concerned has brought the dispute before the court of the Contracting Party which is party to the dispute.
3. The arbitration procedure shall be based on:
(a) the provisions of this Agreement;
(b) the national legal order of the Contracting Party in whose territory the investment was established, including conflict of laws.
4. The arbitration panel shall be final and binding on all parties in the dispute. Each Contracting Party undertakes to execute an arbitration finding in accordance with its national law.
Dispute settlement between Contracting Parties
1. The Parties shall endeavour, in accordance with the principle of good faith and the spirit of cooperation, to resolve promptly and fairly any dispute concerning the interpretation or application of this Agreement. Accordingly, the Contracting Parties will agree to direct and reasonable negotiations that lead to such a solution. If the Contracting Parties do not reach an agreement within six months of the opening of the dispute on the basis of the negotiations referred to above, the dispute may be submitted at the request of either Party to an arbitration panel composed of three members.
2. Within three months of receipt of the request, each Contracting Party shall appoint one arbitrator. The two arbitrators shall elect a third arbitrator who is a member of a third State as chairman. If either Party does not appoint an arbitrator at that time, the other Party may ask the President of the International Court of Justice to make an appointment.
3. If, at the choice of the President, the two arbitrators have not been evaluated within two months of their appointment, the President shall be appointed President of the International Court of Justice at the request of any Contracting Party.
4. Where, in the cases referred to in paragraphs 2 and 3 of this Article, the President of the International Court of Justice is prevented from carrying out that function or is a member of one of the Contracting Parties, the appointment of a Vice-President shall be carried out, and he shall also be prevented from carrying out that function, or if he is a member of one of the Contracting Parties, he shall appoint the oldest member of the International Court of Justice who is not a member of any Contracting Party.
5. The arbitration panel shall approve the procedural rules within three months of the election of the President, which shall comply with the other provisions of this Agreement and shall take into account generally accepted international arbitration rules.
6. The arbitration panel shall take a decision by a majority vote. Such a decision shall be final and binding on both Parties.
7. Each Party shall bear the costs of its arbitrator and of its representation in arbitration proceedings; the costs of the President and the other costs shall be borne equally by the Contracting Parties. However, the Court of First Instance may, in its decision, determine that one of the two parties shall bear a major proportion of these costs.
8. The dispute shall not be brought before an international arbitration panel pursuant to the provisions of this Article if, in the same case, the dispute has already been brought before the arbitration panel pursuant to the provisions of Article VIII and is still before that court. This shall not prevent the opening of direct and reasonable negotiations between the two Contracting Parties.
Entry into force, duration and termination
1. This Agreement shall enter into force on the first day of the second month following the date on which the Contracting Parties have notified each other in writing that the constitutional requirements required in their countries have been fulfilled, shall remain in force for a period of 10 years and shall continue to apply until its validity has been terminated in accordance with paragraph 2 of this Article.
2. Each Contracting Party may terminate this Agreement by giving an annual written notice to the other Party at the end of the first 10-year period or at any time thereafter.
3. This Agreement may be amended by written agreement between the Parties. Any amendment shall enter into force after the Contracting Parties have notified each other that all the national requirements necessary for the entry into force of such amendment have been complied with.
4. Investments made before the expiry of this Agreement shall be covered by Articles I-IX for 10 years after the expiry of this Agreement.
In order to prove the signed representatives, duly authorised to do so, have signed this agreement.
Dane in Ankara on 30 April 1992 in the Czech, Turkish and English languages, all three texts being equally authentic. In the event of a difference in interpretation, the English text will prevail.
For the Czech and Slovak Federal Republic:
Ing. Jozef Bakshay v. r.
Minister for Foreign Trade
For the Republic of Turkey:
Ben Akyol v. r.
Minister for Education
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 187 / 1997 Coll., on the negotiation of the Agreement between the Czech and Slovak Federal Republic and the Republic of Turkey on mutual support and protection of investment |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.08.1997 |
|---|---|
| Effective from | 01.08.1997 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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