19 SEPTEMBER 2005. - An Act to assent to the Agreement between the Belgian Economic Union and Montenegro on the one hand, and Serbia and Montenegro on the other, concerning the mutual encouragement and protection of investments, signed in Belgrade on 4 March 2004 (1) (2) (3)

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Agreement between the Belgian Economic Union and Montenegro, on the one hand, and Serbia and Montenegro, on the other hand, concerning the mutual encouragement and protection of investments, signed in Belgrade on 4 March 2004, will come out its full and full effect.
Promulgation of this law, let us order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 19 September 2005.
ALBERT
By the King:
Minister of Foreign Affairs,
K. DE GUCHT
Minister of Foreign Trade,
Mr. VERWILGEN
Seal of the state seal:
The Minister of Justice,
Ms. L. ONKELINX
____
Note
(1) Session 2004-2005.
Senate.
Documents: Bill tabled on 2 May 2005, No. 3-1176/1. Report, no. 3-1176/2.
Parliamentarians: Discussion, 16 June 2005, 3-118; vote, meeting of 16 June 2005, 3-118.
House of Representatives.
Documents: Senate-owned project, June 17, 2005, No. 51-1870/1. Text adopted in plenary and subject to Royal Assent, July 7, 2005, No. 51-1870/2.
Parliamentarians: Discussion, vote, 7 July 2005.
(2) Pursuant to Article 14, this Agreement shall enter into force on 12 August 2007.
This Agreement will only enter into force with respect to the Republic of Serbia.
(3) See decree of the Flemish Community/Flemish Region of 7 July 2006 (Belgian Monitor of 20 October 2006 (Ed. 3), decree of the Walloon Region of 17 November 2005 (Belgian Monitor of 8 December 2005 (Ed. 2)), order of the Brussels-Capital Region of 10 March 2005 (Belgian Monitor of 24 March 2005).

Agreement between the Belgian Economic Union and Montenegro on the one hand, and Serbia and Montenegro on the other, concerning the mutual encouragement and protection of investments
The Kingdom of Belgium, acting both on its behalf and on behalf of the Grand Duchy of Luxembourg, under existing agreements,
the Walloon Government, the Flemish Government, and the Government of the Brussels-Capital Region, on the one hand,
Serbia and Montenegro, on the other hand,
(hereinafter referred to as the Contracting Parties)
Desirous of strengthening their economic cooperation by creating favourable conditions for the realization of investments by investors of one of the Contracting Parties in the territory of the other Contracting Party,
The following agreed:
ARTICLE 1
Definitions
1. The term "investor" means:
(a) a "national", i.e. any natural person who has the nationality of one of the Contracting Parties, in accordance with its laws and regulations, and makes investments in the territory of the other Contracting Party;
(b) a "company", i.e. any corporation incorporated or duly organized in accordance with the laws and regulations of one of the Contracting Parties, having its seat in the territory of that Contracting Party and making investments in the territory of the other Contracting Party;
(c) a "legal person" that has not been incorporated for the purposes of this Agreement, in accordance with the legislation of either Contracting Party but that is controlled, directly or indirectly, by a natural person as defined in (a) or by a legal person as defined in (b).
2. The term "investment" means any assets invested in any sector of economic activity, whatever, in accordance with the laws and regulations of each Contracting Party and includes, but not limited to:
(a) movable and immovable property and any other real rights such as mortgages, privileges, leases, usufruct and similar rights;
(b) rights derived from shares, shares, bonds and all other forms of equity interest;
(c) receivables and rights to all contractual benefits with economic value;
(d) copyright, industrial property rights, technical processes, names filed and the trade fund;
(e) concessions of public or contractual law granted in accordance with the law, including those relating to the prospecting, cultivation, extraction or exploitation of natural resources.
No change in the legal form in which assets and capital have been invested or reinvested will affect their investment quality within the meaning of this Agreement.
3. The term "income" refers to amounts generated by an investment and, in particular, not exclusively, profits, interests, capital increments, dividends, royalties and allowances.
4. The term "territory" means:
- in respect of the Kingdom of Belgium and the Grand Duchy of Luxembourg, the territory of the Kingdom of Belgium and the territory of the Grand Duchy of Luxembourg, as well as the maritime zones, i.e. the marine and submarine zones which extend beyond the territorial waters of the Kingdom of Belgium and on which the Kingdom of Belgium exercises, in accordance with international law, its sovereign rights and jurisdiction for exploration,
- with regard to Serbia and Montenegro, the area delimited by land borders, as well as the sea, seabed and subsoil that extend beyond the territorial sea and on which Serbia and Montenegro exercises, in accordance with its national laws and regulations and international law, its sovereign rights and jurisdiction.
ARTICLE 2
Investment promotion
Each Contracting Party shall encourage investment in its territory by investors from the other Contracting Party and admit such investments in accordance with its legislation.
ARTICLE 3
Investment protection
1. All direct or indirect investments made by investors of one of the Contracting Parties shall enjoy fair and equitable treatment in the territory of the other Contracting Party.
2. Subject to the measures necessary for the maintenance of public order, these investments will enjoy constant legal security and protection, excluding any unjustified or discriminatory measures that may hinder, in law or in fact, the management, maintenance, use, enjoyment or liquidation of such investments.
ARTICLE 4
Most-favoured national and national treatment
1. For all matters relating to the processing of investments, investors from each Contracting Party will benefit, on the territory of the other Party, from the treatment of the most favoured nation.
2. With regard to exploitation, management, maintenance, use, enjoyment, sale or any other form of investment alienation, each Contracting Party shall grant in its territory to investors of the other Contracting Party a treatment that will not be less favourable than that granted to its own investors or investors of any third State, if that treatment is more favourable.
3. Such treatment will not extend to the privileges granted by a Contracting Party to investors of a third State under its participation or association in a free trade zone, customs union, common market or other form of regional economic organization.
4. The provisions of this section do not apply to tax matters.
ARTICLE 5
Environment
1. Recognizing that each Contracting Party has the right to establish its own level of environmental protection and to define its environmental and development policies and priorities, as well as to adopt or amend its ad hoc laws accordingly, each Contracting Party shall ensure that its legislation guarantees a high level of environmental protection and shall make every effort to continuously improve such legislation.
2. The Contracting Parties recognize that it is not appropriate to limit national environmental legislation to encourage investment. In this regard, each Contracting Party shall ensure that it is not granted an exemption or derogation in any other way to such legislation, nor shall it be offered an exemption or other exemption for the purpose of encouraging the formation, maintenance or expansion of an investment in its territory.
3. The Contracting Parties reaffirm their commitments under international environmental agreements. They will ensure that these commitments are fully recognized and implemented in their national legislation.
4. The Contracting Parties recognize that mutual cooperation offers them greater opportunities to improve environmental standards. At the request of one of the Contracting Parties, the other Party shall agree that representatives of their Governments meet for consultation on any matter falling within the scope of this Article.
ARTICLE 6
Labour
1. Acknowledging that each Contracting Party has the right to set its own labour protection standards and to adopt or amend its ad hoc laws accordingly, each Contracting Party shall ensure that its legislation sets standards of work in conformity with the universally recognized rights of workers and shall not cease to improve those standards.
2. The Contracting Parties recognize that it is not appropriate to limit national labour legislation to encourage investment. In this regard, each Contracting Party shall ensure that it is not granted an exemption or derogation in any other way to such legislation, nor shall it be offered an exemption or other exemption for the purpose of encouraging the formation, maintenance or expansion of an investment in its territory.
3. The Contracting Parties reaffirm their obligations as members of the International Labour Organization and their commitments under the Declaration of the International Labour Organization on Fundamental Principles and Rights of Labour and its follow-up. Contracting Parties shall ensure that such principles and universally recognized rights of workers are recognized and protected in their national legislation.
4. The parties recognize that mutual cooperation offers them greater opportunities to improve labour protection standards. At the request of one of the Contracting Parties, the other Party shall agree that representatives of their Governments meet for consultation on any matter falling within the scope of this Article.
ARTICLE 7
Private and restrictive measures of ownership
1. Each of the Contracting Parties undertakes not to take any measures of expropriation or nationalization or any other measure whose effect is to directly or indirectly dispossess the investors of the other Contracting Party of their investments in its territory.
2. If public utility, security or national interest requirements warrant a derogation from paragraph 1, the following conditions shall be met:
(a) measures shall be taken in accordance with a legal procedure;
(b) they will not be discriminatory or contrary to a specific commitment;
(c) they shall be provided with provisions for the payment of adequate and effective compensation.
3. The amount of the allowances will be the market value of the investments on the day before the measures were taken or made public.
Such allowances shall be paid in convertible currency without delay and shall be freely transferable. They will be of interest to the normal commercial rate from the date of the fixing of their amount to that of their payment.
4. The aggrieved investor shall be authorized, under the laws and regulations of the Contracting Party which carried out the expropriation, to request the review as soon as possible, by a judicial authority or by any other competent independent authority of that Contracting Party, of the case of the investor and the valuation of the investment, in accordance with the principles set out in this Article.
5. Investors of one of the Contracting Parties whose investments would have suffered damage due to war or other armed conflict, revolution, state of national emergency or revolt in the territory of the other Contracting Party, shall, on the part of the other Contracting Party, benefit from treatment, with respect to restitution, compensation, compensation or other compensation, which shall at least be equal to that granted by the latter Contracting Party or the other Contracting Party
ARTICLE 8
Transfers
1. Each Contracting Party shall grant investors of the other Contracting Party the free transfer of all payments relating to an investment, after the settlement of all tax and other obligations, including, but not limited to:
(a) amounts intended to establish, maintain or develop investment;
(b) amounts intended for the settlement of contractual obligations in relation to investment;
(c) repayment of loans;
(d) investment income;
(e) the proceeds of the total or partial sale or liquidation of the investment;
(f) compensation paid pursuant to Article 7;
(g) unspent remuneration of personnel engaged in investment in the territory of that Contracting Party;
(h) payments arising from the settlement of a dispute in accordance with the provisions of Articles 11 and 12.
2. Transfers will be made in a freely convertible currency at the exchange rate applicable to cash transactions in the currency used.
3. Each of the Contracting Parties shall issue the necessary authorizations to ensure without delay the execution of transfers, without any other charges than the usual bank charges.
4. The guarantees provided for in this Article shall be at least equal to those granted to national investors or investors of the most favoured nation.
ARTICLE 9
Subrogation
1. If one of the Contracting Parties or a public body of the Contracting Party pays compensation to its own investors under a particular investment guarantee, the other Contracting Party shall recognize that the rights and claims of investors are transferred to the Contracting Party or to the public body concerned, in their capacity as insurer.
2. Claims and rights thus transferred will not be extended more than the initial claims and rights of investors.
3. With respect to the rights transferred, the other Contracting Party may apply the obligations that are legally or contractually binding on the insurer subject to the rights of the indemnified investors.
ARTICLE 10
Rules applicable
Where an investment issue is governed both by this Agreement and by the national legislation of one of the Contracting Parties or by international conventions currently in force or contracted in the future by the Contracting Parties, the investors of the other Contracting Party may avail themselves of the provisions that are most favourable to them.
ARTICLE 11
Settlement of investment disputes
1. Any investment dispute between an investor of one of the Contracting Parties and the other Contracting Party shall be notified in writing, which shall initiate the proceedings. The notification will be accompanied by a sufficiently detailed aide-memoire.
To the extent possible, the parties will attempt to resolve the dispute through negotiation, possibly using the expert advice of a third party, or by conciliation between the Contracting Parties through diplomatic channels.
2. In the absence of amicable settlement by direct arrangement between the parties to the dispute or by diplomatic conciliation within six months of the notification, the dispute shall be submitted, at the option of the investor, to the competent jurisdiction of the Contracting Party where the investment has been made, or to international arbitration.
To this end, each Contracting Party shall give its early and irrevocable consent to any dispute being submitted to that arbitration. This consent implies that they do not demand the exhaustion of domestic administrative or judicial remedies.
3. In case of recourse to international arbitration, the dispute shall be submitted to one of the following arbitration bodies, at the investor's choice:
- to an ad hoc arbitration tribunal, established in accordance with the arbitration rules of the United Nations Commission on Commercial Law (C.N.U.D.C.I.); or
- at the International Centre for the Settlement of Investment Disputes (I.R.D.I.), established by the Convention for the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington, D.C., on 18 March 1965, when each State Party to this Agreement shall be a member of that Agreement; or
- the Arbitration Tribunal of the International Chamber of Commerce.
If the arbitration procedure has been introduced at the initiative of a Contracting Party, the Contracting Party shall choose the arbitration body to be seized of the dispute.
4. None of the Contracting Parties, a party to a dispute, shall raise any objection, at any stage of the arbitration proceedings or the execution of an arbitration award, as the investor, an opposing party to the dispute, would have received compensation covering all or part of its losses in the execution of an insurance policy or the guarantee provided for in Article 9 of this Agreement.
5. Arbitration awards will be final and binding for the parties to the dispute. Each Contracting Party undertakes to enforce the awards in accordance with its national legislation.
ARTICLE 12
Disputes between Contracting Parties
concerning the interpretation or application of this Agreement
1. Any dispute relating to the interpretation or application of this Agreement shall be resolved, if possible, by diplomatic means.
2. If the dispute is not resolved by diplomatic means, the dispute shall be submitted to a joint commission composed of representatives of the two Parties; the Party shall meet at the request of the most diligent and without undue delay.
3. If the joint commission cannot settle the dispute, the dispute shall be submitted, at the request of either Contracting Party, to an arbitral tribunal constituted, for each particular case, on an ad hoc basis.
Each Contracting Party shall designate an arbitrator within two months of the date on which one of the Contracting Parties has indicated to the other of its intention to submit the dispute to arbitration. Within two months of their designation, the two arbitrators shall jointly appoint a third-country national who shall serve as president of the arbitral tribunal.
If these deadlines have not been observed, one or the other Contracting Party shall invite the President of the International Court of Justice to make the necessary appointment or appointments.
If the President of the International Court of Justice is a national of either Contracting Party or of a State with which one or the other Contracting Party does not maintain diplomatic relations, or if, for another reason, the Vice-President of the International Court of Justice shall be invited to proceed with the appointment or appointments required.
4. The court shall establish its own rules of procedure. Its decisions shall be taken by a majority vote; they shall be final and binding for Contracting Parties.
5. Each Contracting Party shall bear the costs associated with the designation of its arbitrator. The disbursements inherent in the designation of the third arbitrator and the operating costs of the court shall be borne by the Contracting Parties equally.
ARTICLE 13
Previous investments
This Agreement shall also apply to investments made prior to its entry into force by investors of one of the Contracting Parties in the territory of the other Contracting Party in accordance with the laws and regulations of that Contracting Party and shall be applicable to them from the date of its entry into force.
ARTICLE 14
Entry into force and duration
1. This Agreement shall enter into force one month from the date on which the Contracting Parties have exchanged their instruments of ratification. It will remain in force for a period of ten years.
Unless one of the Contracting Parties denounces it at least six months before the expiry of its validity period, it will be automatically extended for a further ten-year period, each Contracting Party reserves the right to denounce it by a notification introduced at least six months before the expiration date of the current validity period.
2. With respect to investments made prior to the expiry date of this Agreement, the provisions of this Agreement shall remain applicable to them for a period of ten years from the expiry date.
In faith, the undersigned representatives, duly authorized to do so by their respective Governments, have signed this Agreement.
Made in Belgrade on 4 March 2004, in two original copies, each in French, Dutch, Serbian and English, all texts being equally authentic. The English language text will prevail in the event of a discrepancy of interpretation.