Communication from the Ministry of Foreign Affairs No. 73 / 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 State of Israel on mutual support and protection of investment
Valid
International Treaty
Effective from 16.03.1999
Text versions:
23.04.1999
73
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that the Agreement between the Government of the Czech Republic and the Government of the State of Israel on mutual support and protection of investment was signed in Jerusalem on 23 September 1997.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified the Agreement.
The Agreement entered into force on 16 March 1999 pursuant to Article 12 (1) thereof.
The Czech version of the Agreement is hereby published at the same time. The English version, which is decisive 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 State of Israel on mutual support and protection of investment
the Government of the Czech Republic and the Government of the State of Israel (hereinafter referred to as the "Contracting Parties'),
led by the desire to intensify economic cooperation to the mutual benefit of both countries,
intending to create favourable conditions for greater investment by investors of one Contracting Party in the territory of the other Contracting Party; and
Recognising that mutual support and protection of investment under this Agreement will lead to encouraging business initiatives and increasing prosperity in both countries,
agree on the following:
Definitions
For the purposes of this Agreement:
1. The term "investment" shall mean 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 shall include in particular, but not exclusively:
(a) movable and immovable property, and any other rights in rem relating to any kind of property, such as mortgages, collateral, guarantees and similar rights;
(b) rights deriving from shares, bonds and other types of holdings in companies;
(c) cash claims and claims on any performance 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) licences resulting from law or contractual arrangements, including licences for exploration, cultivation, extraction or exploitation of natural resources.
2. A change in the form in which the value is invested or reinvested in accordance with the law of the Contracting Party in whose territory the investment is made shall not affect their nature as an investment within the meaning of this Agreement.
3. The term "investor" means:
(i) as regards Czech investors in the State of Israel:
(a) natural persons who are citizens of the Czech Republic in accordance with its laws and who are not citizens or persons permanently residing in the State of Israel in accordance with its laws; or
(b) legal persons registered or constituted in accordance with Czech law and having their permanent headquarters in the Czech Republic;
(ii) as regards Israeli investors in the Czech Republic:
(a) natural persons who are citizens of the State of Israel in accordance with its laws and who are not citizens of the Czech Republic in accordance with its laws; or
(b) legal persons registered or established in accordance with Israeli law and having their registered office in the State of Israel.
4. The term "income 'means the amounts resulting from the investment and includes in particular, but not exclusively, dividends, profits, interest, capital gains, royalties or other charges.
5. The term "territory" means:
(i) in respect of the Czech Republic, the territory of the Czech Republic, where the Czech Republic exercises its sovereignty, sovereignty or jurisdiction;
(ii) in relation to the State of Israel, the territory of the State of Israel, including the territorial sea, the exclusive economic zones and the continental shelf, where the State of Israel exercises sovereignty, sovereign rights or jurisdiction in accordance with international law.
Aid and investment protection
1. Each Contracting Party shall promote and create favourable conditions in its territory for investment by investors of the other Contracting Party and, in accordance with its legal powers, shall recognise such investment.
2. Investments made by investors of one Contracting Party shall be granted proper and fair treatment in the territory of the other Contracting Party and shall enjoy full protection and security in that territory. No Contracting Party shall interfere in any way in its territory with the management, maintenance, use, use or disposal of investors of the other Contracting Party by disproportionate or discriminatory measures.
National treatment and most favoured nation clause
1. No Contracting Party shall subject on its territory investment and investor income of the other Contracting Party to treatment less favourable than that which it provides to its own investors' investments and returns or to the investors' investments and returns of any third State.
2. No Contracting Party shall subject on its territory investors of the other Contracting Party to treatment which is less favourable than that accorded to its own investors or investors of any third State as regards the management, maintenance, use, use or handling of their investments and revenues.
3. The provisions of paragraphs 1 and 2 shall not be construed as obliging one Contracting Party to provide the investors of the other Contracting Party with the benefit of any treatment, benefit or privilege arising from:
(a) any international agreement or arrangement concerning wholly or principally taxation or any domestic legislation relating wholly or principally to taxation; or
(b) any existing or future customs, economic or monetary union, free trade zone agreement or any similar international agreement of which a Contracting Party is or may become a member.
Compensation for losses
(1) Investors of one Contracting Party whose investment in the territory of the other Contracting Party will suffer losses as a result of war or other armed conflict, revolution, exceptional situation, civil unrest or other similar events in the territory of the other Contracting Party shall be provided by the other Contracting Party with regard to compensation, compensation, compensation, compensation or other settlement, treatment no less favourable than that provided by the other Contracting Party to its own investors or investors of any third State. The resulting payments shall be freely transferable in freely convertible currency without delay.
2. Notwithstanding paragraph 1 of this Article, investors of one Contracting Party who, in any of the situations referred to in that paragraph, suffer losses within 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;
compensation or compensation. 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 the same effect as the nationalisation or expropriation ("expropriation ') in the territory of the other Contracting Party, with the exception of expropriation in the public interest relating to the national needs of that Contracting Party, carried out on a non-discriminatory basis, in accordance with a procedure which complies with the applicable law, and against an immediate, proportionate and effective refund. Such compensation will be equal to the market value of the expropriated investment immediately before the expropriation or before the impending expropriation has become generally known, whichever is the earlier, to include interest until the date of payment, will be paid without delay, will be effectively feasible and freely transferable in freely convertible currency.
2. The investors concerned shall have the right, in accordance with the laws of the expropriation Party, to assess their case promptly and to evaluate their investment by judicial or other independent bodies of that Party in accordance with the principles set out in this Article.
Transfer of investments and revenues
1. Each Contracting Party shall, in respect of investments, guarantee the investors of the other Contracting Party an unlimited transfer of their investments and revenues in accordance with the following principles:
(a) Transfers shall be made without delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed by the investor and the relevant counterparty, provided that the investor has fulfilled all of his tax obligations and that the transfer complies with the foreign exchange rules of the Contracting Party in whose territory the investment was made.
(b) In the event that the foreign exchange rules of one Contracting Party are amended, that Contracting Party shall ensure that such changes do not adversely affect the right to transfer investments and revenues under the legislation in force at the time of the investment. However, if those changes provide investment and revenues with more favourable conditions than those applied at the time of the investment, these more favourable conditions shall apply.
2. Unless otherwise agreed by the investor, transfers will be made at the market exchange rate at the date of the transfer.
Settlement of investment disputes between a Party and an investor
1. Any dispute which may arise between an investor of one Contracting Party and the other Contracting Party in relation to an investment carried out 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 cannot be resolved in this manner within a period of six months, the investor shall be entitled to present the dispute:
(a) the competent court of the Contracting Party in whose territory the investment was made; or
(b) the International Investment Dispute Settlement Centre (ICSID), having regard to 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
(c) an arbitrator or an international arbitration panel set up by an ad hoc body agreed by the parties in the dispute. The arbitration panel shall be established in accordance with the principles contained in Article 8.
3. All arbitration findings shall be final and binding on the parties in the dispute.
4. All amounts received or payable as a result of a dispute settlement shall be freely transferable in freely convertible currency.
Disputes between Contracting Parties
1. Disputes between the Parties concerning the interpretation or application of this Agreement should, where possible, be resolved by negotiations and consultations. If both Parties so wish, the dispute may be referred to a bilateral commission composed of representatives of both Parties.
2. If the dispute between the Contracting Parties cannot be resolved within six (6) months of notification of the dispute, it shall be submitted to the arbitration panel at the request of either Contracting Party.
3. Such an arbitration panel shall be established on a case-by-case basis as follows: Within two months of receipt of the request for arbitration, each Party shall appoint one member of the arbitration panel. These two members shall then select a citizen of a third State who, provided that the State maintains diplomatic relations with the two Parties, will be appointed President of the Court, with the agreement of the two Parties. The President shall be appointed within two months of the date of appointment of the remaining two members.
4. If the necessary appointments have not been made within the time limits referred to in paragraph 3 of this Article, any Contracting Party, if there is no other agreement, may request the Chairman of the International Chamber of Commerce in Paris to make any necessary appointments. If the President is a citizen of a Contracting Party or is unable to carry out this act for another reason, the Vice-President shall be asked to make the necessary appointments. If the Vice-President is also a citizen of a Contracting Party or is unable to carry out this act for another reason, the oldest member shall be requested to make the necessary appointments.
5. The arbitration panel shall take its decision by a majority vote. Such a decision shall be binding on both Parties. Each Contracting Party shall bear the costs of its own member of the arbitration panel and of its participation in the arbitration procedure; the costs of the Chair and other expenditure shall be borne equally by the Parties. However, the arbitration panel may, in its decision, order that one of the two parties bear a larger share of the costs and that finding shall be binding on both Parties. The arbitration panel shall determine its own rules of procedure.
Transfer of rights
1. Where one Contracting Party or its authorised Agency (hereinafter referred to as "the first Contracting Party ') makes a payment in respect of the compensation granted for an investment in the territory of the other Contracting Party (hereinafter referred to as" the other Contracting Party'), the other Contracting Party shall recognise:
(a) the transfer of all rights and entitlements of the party compensated to the first Contracting Party by law or legal arrangement; and
(b) that the first Contracting Party is entitled to exercise such rights and to enforce such rights as a transfer of rights to the same extent as the compensated Party.
2. The first Contracting Party shall be entitled under all circumstances:
(a) equal treatment in respect of rights and obligations acquired by way of transfer of rights; and
(b) any payments received in accordance with those rights and entitlements;
in the same way as it was entitled to the treatment and receipt of payments by the compensated party under this Agreement in respect of the investment in question and the proceeds to which it relates.
Application of other rules
Where the provisions of a law of a Contracting Party or obligations under international law existing at present or adopted in the future between the Contracting Parties outside this Agreement contain rules, whether general or specific, authorising investors of the other Contracting Party to be treated more favourably than is provided for by this Agreement, such rules shall, to the extent that they are more favourable, take precedence over this Agreement.
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.
Entry into force, duration and termination
1. Each Contracting Party shall notify the other Contracting Party of the completion of the procedures required for the entry into force of this Agreement. This Agreement shall enter into force on the date of subsequent notification.
2. This Agreement shall remain in force for a period of 10 years. It shall then continue to apply until 12 months after the date on which one Contracting Party notifies the other Contracting Party in writing of the expiry of the Agreement. For investments made during the period of validity of the Agreement, its provisions shall remain effective for a period of 10 years after the expiry date without prejudice to the future application of the rules of general international law.
In order to prove the signature below, duly authorised, they signed this agreement.
Done in duplicate in Jerusalem on 23 September 1997, corresponding to the 21st Elul 5757, in the Czech, Hebrew and English languages, all three texts being equally authentic. In the case of a different interpretation, the English text is decisive.
For the Government of the Czech Republic:
JUDr. Karel Kûhnl v. r.
Minister for Industry and Trade
For the Government of the State of Israel:
Benjamin Netanyahu v. r.
Prime Minister
Annex
When signing the Agreement between the Government of the Czech Republic and the Government of the State of Israel on mutual support and protection of investment, the undersigned agreed on the following provisions, which form an integral part of that Agreement:
(a) The provisions of paragraphs 1 and 2 of Article 3 shall not be interpreted as meaning that the State of Israel shall grant to the investors of the Czech Republic any benefit resulting from any treatment, benefit or privilege arising from the provisions of Article 6 contained in the support and mutual protection agreements concluded between the Government of the State of Israel and between the governments of the Polish reputation, the Republic of Hungary and Romania in 1991.
(b) In the event that the agreements with the Republic of Poland, the Republic of Hungary and Romania are duly amended in such a way that this Annex becomes unnecessary as a result of these amendments, the Government of the State of Israel shall notify the Government of the Czech Republic of this fact. After such notification, the Annex shall become invalid.
Done in duplicate in Jerusalem on 23 September 1997, corresponding to the 21st Elul 5757, in the Czech, Hebrew and English languages, all three texts being equally authentic. In the case of a different interpretation, the English text is decisive.
For the Government of the Czech Republic:
JUDr. Karel Kühnl v. r.
Minister for Industry and Trade
For the Government of the State of Israel:
Benjamin Netanyahu v. r.
Prime Minister
(*) Decision No 2 / 97 The Association Council, the Association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, of 30 September 1997 on the acceptance of the conditions for the participation of the Czech Republic in Community programmes in the field of preparation for employment, youth and education was published under No 76 / 1998 Coll.
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 73 / 1999 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the State of Israel on mutual support and protection of investment |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 23.04.1999 |
|---|---|
| Effective from | 16.03.1999 |
| Effective until | - |
| Status | Valid |
Legal Areas:
International law
International public law
The regulation text is for informational purposes only.
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