Communication from the Ministry of Foreign Affairs No 57 / 1996 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 Republic of Singapore on the promotion and protection of investment
Valid
International Treaty
Effective from 08.10.1995
Text versions:
15.03.1996
57
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that an Agreement between the Government of the Czech Republic and the Government of the Republic of Singapore on the promotion and protection of investment was signed in Singapore on 8 April 1995.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it.
The Agreement entered into force on 8 October 1995 on the basis of Article 16 (1) thereof.
The Czech version of the Agreement is hereby published at the same time.
AGREEMENT
between
Government of the Czech Republic and Government of the Republic of Singapore
on the promotion and protection of investment
the Government of the Czech Republic and the Government of the Republic of Singapore ("the Contracting Parties');
in order to create favourable conditions for greater mutual economic cooperation and in particular for the investment of citizens and companies of one State in the territory of the other State on the basis of the principle of mutual benefit;
Recognising that the promotion and mutual protection of such investments encourages entrepreneurship and increases the prosperity of both States;
agree as follows:
Definitions
For the purposes of this Agreement:
1. The term "investment" shall mean any asset value invested by a citizen or company of one Contracting Party in the territory of the other Contracting Party and authorised in accordance with its legal order and shall include in particular, but not exclusively:
(a) movable and immovable property and other rights in rem, such as mortgages, bonds or guarantees;
(b) shares, bonds, unsecured liabilities of companies and similar forms of participation in companies;
(c) cash claims or claims on any performance under a contract of economic value related to the investment;
(d) intellectual property rights, including copyright, trade marks, patents, designs, technical procedures, know- how, trade secrets, trade names and goodwill; and
(e) an authorisation for commercial activity granted under a law or contractual arrangement, including concessions for exploration, extraction, cultivation or exploitation of natural resources.
2. The term "income" shall mean amounts resulting from investment, including profits, interest, capital gains, dividends, royalties or other charges.
3. The term "citizen" shall mean any person having citizenship of one of the Contracting Parties in accordance with its law.
4. The term "company 'shall mean any trading company, company, association or body, whether or not it is a legal person, registered or established in accordance with the applicable law of one of the Contracting Parties.
5. The term "freely convertible currency" means the currency commonly used for payments in international transactions and commonly traded in major international foreign exchange markets.
Application of this Agreement
This Agreement shall apply to all investments made by citizens or companies of one Contracting Party in the territory of the other Contracting Party after 1 January 1950 which are admitted or authorised as follows:
(a) in relation to investments in the territory of the Czech Republic for all investments made by citizens and companies of the Republic of Singapore which are admitted in accordance with the law of the Czech Republic;
(b) in respect of investments in the territory of the Republic of Singapore for all investments made by citizens and companies of the Czech Republic which are expressly authorised in writing by the competent authority entrusted with the Government of the Republic of Singapore and under such conditions as it considers appropriate, if any, to exist.
Aid and investment protection
1. Each Contracting Party shall, in accordance with its overall economic policy, support and create favourable conditions in its territory for citizens and companies of the other Contracting Party to invest in its territory.
2. Investments carried out in accordance with Article 2 shall be granted due and fair treatment and protection.
Most favoured nation clause
1. None of the Contracting Parties shall subject on its territory investments admitted in accordance with the provisions of Article 2 or the income of citizens and companies of the other Contracting Party to treatment less favourable than that accorded to the investment or income of citizens and companies of any third State.
2. Each Contracting Party shall grant on its territory to the citizens and companies of the other Contracting Party, in respect of their investment-related activities, fair and fair treatment which would prevent any arbitrary discrimination.
Exceptions
1. The provisions of this Agreement relating to the granting of treatment not less favourable than that accorded to citizens and companies of any third State shall not be construed as obliging one Contracting Party to grant to the citizens and companies of the other Contracting Party advantages of treatment, preferences or privileges arising from:
(a) any regional arrangement concerning customs, monetary, tariff or commercial matters (including the free trade zone) or any agreement leading in the future to such forms of regional arrangement; or
(b) any agreement with a third State or third States in the same geographical area aimed at promoting regional cooperation in the field of economy, social affairs, labour, industry or currency in specific projects.
2. The provisions of this Agreement shall not apply to taxation matters within the territory of any Contracting Party. Such matters shall be governed by one of the international agreements relating to taxation, including double taxation agreements and the legal order of each Party.
Expropriation
1. No Contracting Party shall take any measure aimed at expropriation, nationalisation or other measures having a similar effect to that of nationalisation or expropriation ("expropriation ') in respect of the investment of citizens or companies of the other Party, except for measures taken for the purpose of permitted law, on a non-discriminatory basis, in accordance with its laws and for compensation which is immediately feasible and is carried out without undue delay. This refund shall be fixed in accordance with the laws of each Contracting Party, shall be made in freely convertible currency and shall be freely transferable.
2. Any measure relating to the expropriation or valuation of an investment may be reviewed at the request of the citizen or the company concerned by the competent court of the Contracting Party which took the measures in the manner laid down in its legal order.
3. Where a Contracting Party expropriates the assets of a company, registered or established in accordance with the law of any part of its territory in which the citizens or companies of the other Contracting Party own shares, that Contracting Party shall ensure that the provisions of paragraph 1 of this Article shall apply to such citizens and companies of the other Contracting Party which own those shares, to the extent that they are guaranteed compensation under that paragraph.
Compensation for damage
Citizens or companies of one Contracting Party whose investment in the territory of the other Contracting Party will suffer damage as a result of war or other armed conflict, exceptional situation, riot, insurrection or revolt within the territory of the other Contracting Party shall be treated no less favourably than that accorded to citizens or companies of any third State.
Transfers
1. Each Party shall guarantee the citizens or companies of the other Party the free transfer of their capital and proceeds from any investment on a non-discriminatory basis. Transfers shall be made in freely convertible currency, without limitation and without undue delay. Such transfers shall include in particular, but not exclusively:
(a) profits, capital gains, dividends, royalties, interest and other current income resulting from the investment;
(b) revenue from the total or partial liquidation of the investment;
(c) repayments under an investment-related credit agreement;
(d) royalties or other charges relating to intellectual property rights or goodwill;
(e) payments for technical assistance, technical services and management fees;
(f) payments in relation to investment-related contractual projects;
(g) the income of citizens of the other Contracting Party who work in connection with the investment in the territory of the first Contracting Party.
2. None of the provisions of paragraph 1 of this Article shall affect the free transfer of refunds paid under Articles 6 and 7 of this Agreement.
Exchange rate
The transfers referred to in Articles 6, 7 and 8 of this Agreement shall be made in freely convertible currency at the prevailing market rate at the date of the transfer.
Legal order
In order to avoid any doubt, it is claimed that all investments are governed by the legal rules in force in the territory of the Contracting Party on which such investments are made. In the event of any conflict between this Agreement and the legal order in force in the territory of the Contracting Party on which the investments are made, this Agreement shall prevail.
Prohibitions and restrictions
The provisions of this Agreement shall in no way restrict the right of each Contracting Party to apply, in accordance with its own law, prohibitions or restrictions of any kind, or to take any other measure to protect its essential security interests or to protect public health or to prevent the spread of animal and plant diseases and pests.
Transfer of rights
1. In the event that one of the Contracting Parties (or any agency, institution, statutory authority or association authorised by it) makes payment to its own citizens and companies for any of their claims under this Agreement, the other Party shall recognise that the first Contracting Party (or any agency, institution, statutory authority or association empowered by it) is entitled to exercise the rights and exercise the rights of its citizens and companies as a result of the transfer of rights. The transferred rights or rights shall not exceed the original rights or rights of the investor.
2. Any payment made by one Contracting Party (or any agency, institution, statutory authority or association empowered by it) to its citizens and companies shall be without prejudice to the right of such citizens and companies to claim claims against the other Contracting Party pursuant to Article 13.
Investment disputes
1. Any dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of the other Contracting Party shall, as far as possible, be settled by friendly negotiations between the parties to the dispute. A Party intending to settle such a dispute by negotiation shall notify the other Party in writing of its intention.
2. If the dispute cannot be resolved in such a way as provided for in paragraph 1 of this Article within six months of the date of notification made pursuant to this paragraph by one of the parties to the dispute, the dispute shall, unless otherwise judged by the parties, be submitted either at the request of one of the parties to the dispute:
(a) the conciliation or arbitration procedure of the International Investment Dispute Settlement Centre established by the United Nations Convention on the Settlement of Investment Disputes between States and citizens of other States, open for signature in Washington on 18 March 1965; or
(b) the conciliation procedure under the 1980 United Nations International Trade Law Commission's conciliation procedure or the 1976 United Nations International Trade Law arbitration procedure.
Disputes between Contracting Parties
1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled by negotiation.
2. If the dispute cannot be settled within six months, it shall be submitted to arbitration at the written request of one of the Contracting Parties. The arbitration panel (hereinafter referred to as "the Court ') shall consist of three arbitrators, each of the Contracting Parties appointing one and the third to be President of the Court, being appointed in accordance with paragraph 3 of this Article.
3. Within two months of receipt of the request for arbitration, each Contracting Party shall appoint one arbitrator. 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. The President shall be appointed within three months of the date of appointment of the first arbitrators.
4. If the court is not established within five months of receipt of the request for arbitration, either Party may, unless otherwise agreed, invite the President of the International Court of Justice to appoint arbitrators who have not yet been appointed. If the President is a citizen of a Contracting Party or is unable to make the necessary appointment, the Vice-President may be asked to make such appointment. If the Vice-President is a citizen of a Contracting Party or is unable to make an appointment, the oldest member of the International Court of Justice who is not a citizen of any Contracting Party, etc.
5. The court shall take its decision by a majority vote.
6. The decision of the Court shall be final and shall be governed by the Contracting Parties and shall respect the terms of the arbitration panel.
7. Each Contracting Party shall reimburse the costs of its own court member and its participation in arbitration proceedings and half of the costs of the President and other costs. However, the Court of First Instance may, in its decision, provide that one of the parties pays a greater share of the costs and that such finding shall be binding on both parties.
8. The Court of First Instance shall establish its own rules of procedure, irrespective of the above provisions.
Other liabilities
1. Where the legislature of one of the Contracting Parties or international obligations existing at present or accepted in the future between the Contracting Parties outside this Agreement authorises the investment of citizens and companies of the other Contracting Party to be treated more favourable than that provided for in this Agreement, such treatment shall not be affected by this Agreement.
2. Each Contracting Party shall respect the commitments it has made in addition to the obligations laid down in this Agreement in relation to investment by investors of the other Contracting Party. None of the Contracting Parties will interfere in the commitments entered into in addition to this Agreement between its citizens and companies and companies of the other Party in relation to their investments.
Entry into force, duration and termination
1. Each Contracting Party shall notify the other Contracting Party of the fulfilment of its internal legal procedures required for the entry into force of this Agreement. This Agreement shall enter into force on the 30th day following the date of subsequent notification by the Contracting Party.
2. This Agreement shall remain in force for a period of 15 years and shall continue to apply until, after an initial period of 14 years, one Contracting Party has notified the other Contracting Party in writing of its intention to terminate the Agreement. Such notice of termination shall take effect one year after receipt of such notification by the other Party.
3. For investments made before the date on which the notification of termination of this Agreement takes effect, the provisions of Articles 1 to 15 shall remain in force for a further period of 15 years from that date.
In order to prove this, the undersigned representatives, duly empowered by their governments, have signed this Agreement.
Done in duplicate in Singapore on 8 April 1995, in Czech and English, both texts equally valid.
For the Government
Czech Republic:
Vladimir Long v. r.
Minister for Industry and Trade
For the Government
Republic of Singapore:
Dr. Richard Hu v. r.
Minister for Finance
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 57 / 1996 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the Republic of Singapore on the promotion and protection of investment |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.03.1996 |
|---|---|
| Effective from | 08.10.1995 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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