Communication from the Ministry of Foreign Affairs No. 250 / 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 the Democratic People's Republic of Korea on the promotion and mutual protection of investment
Valid
International Treaty
Effective from 10.10.1999
250
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that on 27 February 1998 the Agreement between the Government of the Czech Republic and the Government of the Democratic People's Republic of Korea on the promotion and mutual protection of investment was signed in Pyongyang.
The Agreement entered into force on 10 October 1999 pursuant to Article 12 (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 Government of the Czech Republic and the Government of the Democratic People's Republic of Korea on the promotion and mutual protection of investment
the Government of the Czech Republic and the Government of the Democratic People's Republic of Korea (hereinafter referred to as the "Contracting Parties'),
led by the desire to develop economic cooperation for the mutual benefit of both countries,
to create and maintain 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 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, as well as any other property rights 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 from a contractual arrangement having an economic 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 law resulting from a law or contractual arrangement and any licence and licence issued 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 the Democratic People's Republic of Korea or the Czech Republic or 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:
(a) in respect of the Czech Republic, the territory of the Czech Republic over which it exercises its sovereignty, sovereignty and jurisdiction in accordance with international law;
(b) in relation to the Democratic People's Republic of Korea, the territory of the Democratic People's Republic of Korea, including the coastal territory and the coastal sea, and any marine or underwater area over which the Democratic People's Republic of Korea exercises sovereignty, sovereignty and jurisdiction in accordance with international law for the purpose of exploring, exploiting and protecting the seabed, subsoil and natural resources.
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; or
(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 of the events referred to in the previous 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 investment-related payments 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) the proceeds arising from the total or partial sale or liquidation of the investment;
(f) salaries or other statutory income of persons having foreign citizenship who are employed and who are permitted 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 date of transfer shall 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 any dispute between an investor of one Contracting Party and the other Contracting Party is not settled in such a manner within a period of six months, the investor shall be entitled to present the case at his choice either:
(a) the competent court or administrative tribunal of the Contracting Party which is party to the dispute; or
(b) 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. on 18 March 1965, where both Parties are Parties to this Convention; or
(c) 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 and shall be enforceable in accordance with the national legislation of the Party concerned.
Dispute settlement between Contracting Parties
1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall, where possible, be resolved by consultations and 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 reimburse 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 claims arising from events which occurred prior to its entry into force or to claims which were dealt with before its entry into force.
Entry into force, duration and termination
1. This Agreement shall enter into force on the 30th day following the date on which both Parties have notified each other of the fulfilment of their legal requirements for the entry into force of this Agreement.
2. This Agreement shall remain in force for a period of 10 years. It shall then automatically continue for a subsequent period of 10 years unless one of the Contracting Parties notifies the other Contracting Party in writing 12 months before the expiry of its decision 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 its expiry.
4. This Agreement may be amended by mutual written agreement of the Contracting Parties. Any amendment to the Agreement shall enter into force after each Contracting Party has notified the other Contracting Party of the fulfilment of all the legal requirements for the entry into force of such amendment.
In order to prove the signature below, duly authorised, they signed this agreement.
Dane in Pyongyang on 27 February 1998 in two original copies, in Czech, Korean and English, all texts being equally authentic. 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 of the Czech Republic
For the Government of the Democratic People's Republic of Korea:
Ri Song Rok v. r.
Vice-President of the Commission for External Economic Relations
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 250 / 1999 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the Democratic People's Republic of Korea on the promotion and mutual protection of investment |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 11.11.1999 |
|---|---|
| Effective from | 10.10.1999 |
| Effective until | - |
| Status | Valid |
Legal Areas:
International law
International public law
The regulation text is for informational purposes only.
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