Communication from the Ministry of Foreign Affairs No. 69 / 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 United Arab Emirates on the promotion and protection of investment
Valid
International Treaty
Effective from 25.12.1995
Text versions:
27.03.1996
69
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that on 23 November 1994 the Agreement between the Government of the Czech Republic and the Government of the United Arab Emirates on the promotion and protection of investment was signed in Abu Dhabi.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it.
The Agreement entered into force on 25 December 1995 on the basis of Article 14 (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
Government of the Czech Republic and Government of the United Arab Emirates
on the promotion and protection of investment
Government of the Czech Republic and Government of the United Arab Emirates (both countries continue to be collectively referred to as "Contracting States' and each specifically referred to as" Contracting State '),
Desiring to create favourable conditions for greater economic cooperation between them and, in particular, for investments by investors of one Contracting State in the territory of the other Contracting State,
Recognising that encouraging and mutually protecting such investments on the basis of international agreements will stimulate business initiative and increase prosperity in both Contracting States,
agree on the following:
Definitions
For the purposes of this Agreement:
(1) The term "investment" refers to any asset value invested by a government or by a natural or legal person of one Contracting State in the territory of the other Contracting State in accordance with the laws, regulations and administrative procedures of that State and includes, in particular, but not exclusively:
(a) movable and immovable property, and other rights in rem, such as mortgages, mortgages, guarantees, exploitation rights and similar rights;
(b) shares, bonds and deposits of companies or other rights or interests in such companies, loans relating to investments and bonds issued by the Contracting State or any of its natural or legal persons, and income withheld for reinvestment;
(c) liquid assets, deposits and monetary claims or performance claims under a contract having economic and financial value associated with the investment;
(d) copyright, trademarks, patents, industrial designs and other industrial property rights, know-how, business secrets, business names and goodwill;
(e) rights arising from law, administrative decisions or contracts, including licences and authorisations issued in accordance with the law, which are of economic value and which are necessary for the pursuit of economic activities such as the rights of exploration, exploration, extraction, conquest and exploitation of natural resources.
Any change in the form in which values are invested will not affect their assessment as investments.
(2) The term "investor" means the Government of the Contracting State or any natural or legal person that invests in the territory of the other Contracting State:
(a) The term "natural person" shall mean, in relation to any Contracting State of an individual having citizenship of that Contracting State in accordance with its law.
(b) The term "legal person" means, with regard to each Contracting State, any company established in accordance with the law of that Contracting State and recognised in accordance with this law as a legal person, such as: public and private companies, commercial companies, business associations, administrative offices, public commercial companies, foundations, firms, institutions, organisations, agencies, development funds, undertakings, cooperatives and organisations or other similar companies, whether or not guaranteed.
(3) The term "revenue" means the amounts resulting from the investment and includes, in particular, but not exclusively, profits, interest, capital gains, dividends, fees, management fees, technical assistance or other charges regardless of the form in which the proceeds are paid.
(4) The term "territory" means the territory of the Czech Republic or the territory of the United Arab Emirates, as well as the coastal areas including islands, inland waters, the coastal sea, the exclusive economic zone, the continental shelf, the seabed and the subsoil adjacent to the external border of coastal waters of each of the abovementioned territories, over which that State exercises sovereign rights in accordance with national law and international law.
(5) "Associated activities" include the organisation, control, operation, maintenance and handling of legal persons, branches, agencies, offices, factories or other facilities for carrying out business activities, the conclusion, execution and execution of contracts, the acquisition, use, protection and availability with all kinds of property, including intellectual property rights and industrial property rights, the lending of funds, the purchase and issue of ordinary shares and the purchase of foreign currency for imports.
(6) The term "free currency" means a currency which is generally used by traders to make payments in international trade and which is used in major currency markets such as the US dollar, pound sterling, German mark, Swiss franc, French franc.
Aid and investment protection
(1) Each Contracting State will promote and create favourable conditions for investors of the other Contracting State to invest in its territory and, in the application of the powers conferred on it by its laws and administrative practices, will allow such investments and their associated activities.
(2) The investments will enjoy full protection and security throughout the period to an extent consistent with international law.
(3) Each Contracting State will ensure fair and equal treatment of investors in the other Contracting State throughout the period. Each Contracting State shall ensure that the management, maintenance, use, use, acquisition or treatment of investment or the rights associated with the investment or their associated activities by the investors of the other Contracting State in its territory is in no way affected or disturbed by arbitrary, unjustified or discriminatory measures.
(4) (i) Each Contracting State shall endeavour, in accordance with its own law, to take the necessary measures to provide appropriate opportunities, incentives and other forms of encouraging investment by investors of the other Contracting State.
(ii) The investors of each Contracting State shall be entitled to ask the competent authorities of the Host State for appropriate opportunities, incentives and other forms of encouragement and shall be provided by the Host State with all assistance, consent, approval, licence and authorisation to the extent and under the conditions and circumstances specified at the time by the Host State's legal order.
(5) In relation to tax policy, each Contracting State shall endeavour to provide fair and equal treatment to investors in the other Contracting State.
(6) The Contracting States will consult each other on investment opportunities in different sectors of the economy in the territory of the other with a view to identifying where investment from one Contracting State in the territory of the other would be most advantageous in the interests of both Contracting States.
(7) In order to achieve the objective of this Agreement, the Contracting States shall support and facilitate the creation and establishment of appropriate undertakings with foreign shareholdings among investors of the Contracting States to establish, develop and implement investment projects in different economic sectors in accordance with the laws of the host State.
(8) Investors of each Contracting State will be allowed to employ senior managers of their choice, irrespective of their nationality, to the extent permitted by the laws of the Host State. The Contracting State shall grant all available benefits, including the issuing of visas and residence permits to such managers and their families in accordance with the legal rules and official practices of the other Contracting State.
(9) Contracting States shall not, as a condition for the establishment, extension or maintenance of an investment, impose requirements requiring or ordering the export of manufactured goods or requiring that goods or services must be purchased locally or impose any other similar requirements.
(10) Each Contracting State undertakes to provide effective measures to enforce claims and enforce rights in relation to investment agreements, investment authorisations and assets. No Contracting State shall restrict the right of investors of the other Contracting State to refer to its courts, administrative courts and authorities and all other bodies having jurisdiction.
(11) Each Contracting State shall publish any legislation, official practice and procedures which relate to or affect investment.
National treatment and most favoured nation clause
(1) On its territory, each Contracting State shall provide investment and return on investors of the other Contracting State with treatment no less favourable than that which it provides for investment and income of its own investors or investment and return on investors of any third State.
(2) Each Contracting State will, on its territory, provide investors of the other Contracting State with treatment no less favourable than that accorded to investors of their own or to investors of any third State in terms of the management, maintenance, use, use, use, acquisition, or disposal of their investments or any associated activities.
Exceptions
The provisions of this Agreement relating to the granting of treatment not less favourable than that accorded to its own investors or investors of any third State shall not be interpreted as meaning that one Contracting State undertakes to grant to investors of the other Contracting State the benefits of treatment, preference or privileges arising from:
(i) any existing or future customs union, economic union or free trade zone or common customs tariff zone or similar international agreement or other form of regional or sub-regional cooperation agreement of which any Contracting State is a member or may become a member; or
(ii) any international, regional or sub-regional agreement or similar arrangement relating wholly or principally to the taxation or movement of capital.
Compensation for damage or loss
(1) Investors of one Contracting State whose investment in the territory of another Contracting State will suffer a loss as a result of war or other armed conflict, revolution, exceptional condition, insurrection, revolt, riot or disturbance or similar events in the territory of another Contracting State will be provided by the other Contracting State with regard to the correction, compensation, compensation, compensation or other settlement, treatment not less favourable than that provided by that Contracting Party to investors in its own or to investors in any third State. Such payment shall be freely transferable.
(2) Notwithstanding paragraph 1 of this Article, investors of one Contracting State who, in any of the cases referred to in this paragraph, will suffer damage or loss within the territory of the other Contracting State consisting of:
(a) confiscation of their investments or property by their armed forces or official authorities;
(b) the destruction of their investments or assets by their armed forces or official bodies which were not caused by combat actions or by the necessity of the situation;
immediate and adequate compensation for damage and losses suffered during the occupation or as a result of destruction of property. The resulting payments shall be made in freely usable currency and shall be freely transferable without delay.
Nationalisation or expropriation
(1) Investment by investors in one or the other Contracting State will not be subject to seizure, confiscation or similar measures and will enjoy full and complete protection and security in the territory of the other Contracting State.
(2) No Contracting State shall take any measure leading to the expropriation or nationalisation or freezing of assets or any other measure having the same effect or subject to such measure, directly or indirectly, to the equivalent expropriation, compulsory sale of all or part of the investment, or to any deterioration or withdrawal of its management or control.
(3) The measures referred to in paragraphs 1 and 2 of this Article may be taken only if the following conditions are met:
(a) the measures are taken on grounds of the highest and essential public interest;
(b) the measures are taken in accordance with the constitutional and national laws and general principles of international law;
(c) the measures are not discriminatory;
(d) the measures are taken in accordance with the law by the competent authority or by the competent court. The investor shall have the right to seek protection against expropriation or any such measure in the competent court of the Contracting State which has taken such measures;
(e) the measures are accompanied by an immediate, adequate and effective refund.
(4) Such compensation shall be calculated on the basis of the market value of the investment immediately before the decision on nationalisation or expropriation has been notified or became known to the public and shall be determined in accordance with the accepted principles for establishing such market value; where market value cannot be established without undue delay, the compensation shall be determined on fair principles taking into account, inter alia, the capital invested, amortisation, the capital already transferred, the replacement value, goodwill and other important circumstances. In the event of a delay in payment of the refund, such compensation shall be paid in an amount which provides the investor with a position that is no less favourable than that in which the refund would be paid immediately after the date of expropriation or nationalisation. In order to achieve this objective, the refund will include interest or a rate as laid down by law for the currency in which the investment is conducted from the date of nationalisation or expropriation to the date of payment.
(5) Where a Contracting State has in its territory a national or expropriated investment of a legal person established or authorised under the applicable law and in which the other Contracting State or one of its investors owns shares, shares, bonds or other claims, it shall ensure that immediate, adequate and effective compensation is granted and is permitted to transfer it. Such compensation shall be determined and reimbursed in accordance with paragraph 4 of this Article.
Transfers and transfers of capital and income
(1) The Contracting State will guarantee investors of the other Contracting State unlimited transfers of investment-related payments and revenues. Transfers shall be made in freely convertible currency without restriction 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) net profit, dividends, fees, technical assistance payments and technical services, interest and other income generated by any investment;
(c) proceeds from the sale, complete or partial liquidation of the investment;
(d) repayment appropriations;
(e) the amounts intended to cover expenditure relating to the maintenance of the investment;
(f) net earnings of public citizens who are allowed to work in an investment carried out in the territory of the second Contracting State.
(2) For the purposes of this Agreement, exchange rates will be the official rates applicable to current transactions on the date of transfer.
(3) The Contracting States shall undertake to grant transfers referred to in paragraph 1 of this Article treatment as favourable as that accorded to transfers resulting from investments made by investors of a third State.
(4) The term "without undue delay" means that transfers are made at the time normally required to prepare the elements of the transfer. The period shall run from the date on which the application, together with the necessary documents, was submitted properly to the competent authorities and should under no circumstances exceed two months.
Transfer of rights
(1) Where a Contracting State or its authorised agency makes a payment to any of its investors for compensation or guarantee granted in connection with an investment or part thereof within the territory of the host State, or otherwise has been transferred to it any rights of such an investor for such an investment, the host State shall recognise:
(a) the law of the other Contracting State or its authorised agency resulting from the transfer of the right, compensation or any other transfer of the right, whether by law or by a legal arrangement; and
(b) that the other Contracting State or its authorised agency is entitled to exercise the same right as their legal predecessor by virtue of the transfer of the right.
(2) However, the second Contracting State will recognise the right of the host State to deduct any taxes and other fees due by the investor.
(3) If the other Contracting State obtains any of the amounts referred to above, it shall be treated no less favourably than that granted to investors in the host State or third State which originate from investments or associated activities similar to those in which the compensated party was involved.
Resolving investment disputes between the Soura State and the investor of the second Contracting State
(1) Any dispute which may arise between an investor of one Contracting State and the other Contracting State in connection with an investment in the territory of that other Contracting State shall be the subject of a dispute between the parties.
(2) If the dispute between the investor of one Contracting State and the other Contracting State is not settled in this manner 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; or
(b) an arbitrator or an ad hoc international arbitration panel 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 States
(1) If a dispute arises concerning the interpretation or application of this Agreement, the governments of the Contracting States shall endeavour to resolve it by diplomatic means.
(2) If the dispute is not resolved in this way within six months of the date of its establishment, it shall be submitted, at the written request of any Contracting State, to an ad hoc arbitration panel established in accordance with the provisions of this Article.
(3) The arbitration panel will be established as follows: within three months of receipt of the written request for arbitration, each Contracting State shall designate one arbitrator. The two arbitrators shall then select a citizen of a third State who, with the agreement of the two Contracting States, shall act as President of the Court (hereinafter referred to as "the President '). The President shall be appointed within three months of the date of the provisions of the other two arbitrators.
(4) If, within the time limit laid down in paragraph 3 of this Article, a Contracting State does not appoint an arbitrator or that two arbitrators do not agree with the President, the President of the International Court of Justice may be asked to make an appointment. If he becomes a citizen of one of the Contracting States, or if he is unable to carry out this act for any other reason, he shall be asked to appoint a Vice-President. If the Vice-President is also a citizen of a Contracting State or if he is unable to perform this task, he shall be asked to appoint the oldest member of the International Court of Justice who is not a citizen of any Contracting State.
(5) The arbitration panel shall take its decision by a majority vote. Such a decision is binding. Each Party shall pay the costs of its own arbitrator and of its legal representative in arbitration proceedings; the costs of the President and the other costs shall be borne equally by both Contracting States. Unless the Contracting States decide otherwise, the Court of First Instance shall establish its own rules of procedure.
Application of the Investment Agreement
This Agreement shall apply to investments made in the territory of any Contracting State in accordance with its legal order by investors of the other Contracting State after 2 December 1971.
Relations between governments
The provisions of this Agreement shall apply regardless of the existence of diplomatic or consular relations between the Contracting States.
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, or by general legal principles jointly recognised by the two Contracting States or by the national laws of the Host State, nothing in this Agreement shall prevent any Contracting State or any investor of the Contracting State which owns investments in the territory of the other Contracting State from making use of provisions which are more favourable to it.
(2) Investments subject to special contracts or obligations assumed by one Contracting State in relation to investors of the other Contracting State shall be governed, irrespective of the provisions of this Agreement, by the provisions of such contracts and obligations, where they are more favourable than those of this Agreement.
Entry into force, duration and termination
(1) Each Contracting State shall, through diplomatic channels, notify the other Contracting State of compliance with the legal requirements 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 and shall continue to apply unless one year before the end of the initial period or any subsequent period, one Contracting Party 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.
To prove the signature, duly empowered, they signed this agreement and attached their seals to it.
Dane v Abu Dhabi on 23 November 1994, equivalent to 20th Jamadi Al Thani 1414 H, in duplicate in the Czech, Arabic and English languages, each text being equally authentic. In the case of contradictions, the English text is decisive.
For the Government of the Czech Republic:
Vladimir Long v. r.
Minister for Industry and Trade
For the Government of the United Arab Emirates:
Ahmed Humaid Al Tayer v. r.
State Minister for Finance and Industry
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 69 / 1996 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the United Arab Emirates on the promotion and protection of investment |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 27.03.1996 |
|---|---|
| Effective from | 25.12.1995 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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