13 MAI 2003. - An Act to approve the Agreement between the Belgian Economic Union and the Republic of Croatia concerning the mutual encouragement and protection of investments, made in Brussels on 31 October 2001 (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 the Republic of Croatia concerning the mutual encouragement and protection of investments, made in Brussels on 31 October 2001, will come out its full and full effect.
Promulgate this Act, order that it be re-elected from the State seal and published by the Belgian Monitor.
Given in Brussels on 13 May 2003.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister, Deputy Minister of Foreign Affairs, and Head of Agriculture,
Ms. A. NEYTS-UYTTEBROECK
Seal of the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Notes
(1) Session 2002-2003.
Senate.
Documents. - Bill tabled on 3 February 2003, No. 2-1452/1. - Report made on behalf of the commission, No. 2-1452/2.
Annales parliamentarians. - Discussion, meeting of March 13, 2003. - Vote, meeting of 13 March 2003.
Room.
Documents. - Project transmitted by the Senate, No. 50-2375/1. - Text adopted in plenary and subject to Royal Assent, No. 50-2375/2.
Annales parliamentarians. - Discussion, meeting of 3 April 2003. - Vote, meeting of 3 April 2003.
(2) See also the Decree of the Flemish Community/ Flemish Region of 4 April 2003 (Belgian Monitor of 6 May 2003), the Decree of the Walloon Region of 13 November 2002 (Belgian Monitor of 4 December 2002), the Order of the Brussels-Capital Region of 12 June 2002 (Belgian Monitor of 12 July 2002).
(3) This agreement comes into force on 28 December 2003.

AGREEMENT
between the Belgian Economic Union and the Republic of Croatia concerning mutual encouragement and protection of investments
THE GOVERNMENT OF THE BELGIUM ROYAUME,
acting both in his name
on behalf of the Government of the Grand Duchy of Luxembourg,
under existing agreements,
the Flemish Government
the Walloon Government,
and the Government of the Brussels-Capital Region
and
THE GOVERNMENT OF THE REPUBLIC OF CROATIA,
(hereinafter referred to as the Contracting Parties)
ISSUES to encourage the development of economic cooperation among themselves, with regard to investments made by investors of one of the Contracting Parties in the territory of the other Contracting Party;
CONSCIENTS that the conclusion of an agreement on the treatment to be granted to these investments will stimulate the flow of private capital and the economic development of Contracting Parties;
Acknowledging that the establishment of a stable investment framework will help to maximize the use of economic resources and increase prosperity;
AYANT decided to conclude the Agreement concerning mutual encouragement and protection of investments;
AGAINST WHO ITS:
ARTICLE 1^er Definitions
For the purposes of the Agreement:
1. The term "investment" means any element of any asset and any direct or indirect contribution in cash, in kind or in services, invested or reinvested in any sector of economic activity by investors of any of the Contracting Parties in the territory of the other Contracting Party in accordance with the laws and regulations of the other Contracting Party, including, but not limited to:
(a) movable and immovable property and other real rights such as mortgages, privileges, leases, usufructs and similar rights;
(b) shares, shares, bonds and other forms of participation in corporate capital;
(c) receivables and rights to all benefits of economic value, including any loan granted to create an economic value;
(d) intellectual property rights, including, but not limited to, copyrights and neighbouring rights, industrial property rights, trademarks, patents, industrial designs and technical processes, plant variety protection titles, know-how, business secrets, registered names and trade funds;
(e) rights for any economic and commercial activity, conferred under the law or contract, including concessions relating to the prospecting, cultivation, extraction or exploitation of natural resources.
No change in the form in which assets have been invested or reinvested will affect their investment quality.
2. The term "investor" means, for each Contracting Party:
(a) any natural person, a national of one of the Contracting Parties, who makes an investment in the territory of the other Contracting Party;
(b) any incorporated or duly organized legal entity in accordance with the laws and regulations of one of the Contracting Parties, having its seat and an economic activity in the territory of that Contracting Party and making an investment in the territory of the other Contracting Party.
3. The term "income" refers to any amount generated by an investment, but not exclusively, profits, dividends, interest, capital increments, royalties, patent licence fees and other royalties. Reinvested income will benefit from the same treatment as the starting investment.
4. The term "without delay" means the period usually provided for the transfer of payments.
5. The term "freely convertible currency" means any currency widely negotiated in international exchange markets and widely used in international transactions.
6. The term "territory" means:
with respect to the U.E.B.L: the territory of the Kingdom of Belgium or the territory of the Grand Duchy of Luxembourg respectively as well as the maritime areas, including the seabed and their basement, adjacent to the outer limits of the territorial sea of either of the above-mentioned States, on which the State concerned exercises, in accordance with international law, its sovereign rights and jurisdiction for exploration, exploitation and exploitation of natural resources;
with regard to the Republic of Croatia: the territory of the Republic of Croatia and the maritime areas adjacent to the outer limits of the territorial sea, including the seabed and its basement, on which the Republic of Croatia exercises, in accordance with international law, its sovereign rights and jurisdiction.
ARTICLE 2
Encouragement and acceptance of investments
1. Each Contracting Party shall encourage and create favourable conditions for investors of the other Contracting Party to make investments in its territory and to admit such investments in accordance with its laws and regulations.
2. At the request of either Contracting Party, each Contracting Party shall endeavour to inform the other Contracting Party of the possibilities for investment in its territory, with a view to encouraging mutual flows of investments.
3. Each Contracting Party shall grant, if necessary, within the framework of its legislation, the permits required in relation to the investments made in its territory, including the authorizations required to hire managers and technicians, regardless of their nationality, at the discretion of the investor.
4. In accordance with its laws, regulations and procedures relating to the entry, residence and work of natural persons in its territory, each Contracting Party shall allow the control personnel, including the executives and technicians employed in respect of investments made by an investor of the other Contracting Party, regardless of the nationality of the persons concerned, to enter, stay and work in its territory. The relatives of the said command staff (spouse and minor children) will receive similar treatment with respect to the entry and temporary stay in the territory of the host Contracting Party.
ARTICLE 3
Investment protection
1. Each Contracting Party shall grant protection and security in its entire territory to the investments and revenues of investors of the other Contracting Party. No Contracting Party shall, by arbitrary, abusive or discriminatory measures, interfere with the development, management, maintenance, use, enjoyment, expansion, sale or, where appropriate, liquidation of such investments. Each Contracting Party shall comply with any other obligation that it may have entered into with respect to specific investments or investors of the other Contracting Party.
2. The investment or income of investors of each Contracting Party in the territory of the other Contracting Party shall be treated fairly and equitably in accordance with international law and the provisions of this Agreement.
3. None of the Contracting Parties shall subject to mandatory conditions in their territory the investments of investors of the other Contracting Party, with regard to the acquisition of materials, means of production, operation or transport and the marketing of their products, or shall take similar decisions with abusive or discriminatory effects.
4. Each Contracting Party shall publish without delay or make available to the public in any other manner its laws, regulations, procedures and administrative decisions and general judicial decisions and international agreements that may have an impact on the investment of investors of one of the Contracting Parties in the territory of the other Contracting Party.
ARTICLE 4
National treatment and treatment of the most favoured nation
1. None of the Contracting Parties shall grant in its territory the investment and income of investors of the other Contracting Party less favourable treatment than that accorded to the investment and income of its own investors, or to the investment and income of investors of any third State, following the most favourable treatment to the investors concerned.
2. None of the Contracting Parties shall grant investors of the other Contracting Party to its territory, in respect of the management, maintenance, enjoyment, use or disposition of their investments, less favourable treatment than that granted to its own investors or investors of any third State, following the most favourable treatment to the investors concerned.
3. The provisions of paragraphs 1^er and 2 of this Article shall not be construed as requiring any of the Contracting Parties to extend to investors of the other Contracting Party the benefit of any treatment, preference or privilege that may be granted by the first Contracting Party under:
(a) a customs union or economic union, a free trade zone or a similar, existing or future international agreement;
(b) an international agreement or arrangement concerning partial or total taxation to which either of the Contracting Parties is or would become a party.
ARTICLE 5
Private and restrictive measures of ownership
1. None of the Contracting Parties shall take direct or indirect measures of expropriation or nationalization or any other measure having an effect equivalent to the investment of an investor of the other Contracting Party in its territory (hereinafter referred to as "expropriation") unless such measures are taken:
(a) in the public interest,
(b) on a non-discriminatory basis,
(c) by law, and
(d) upon payment without delay of an effective and adequate compensation.
2. Compensation will be paid without delay.
3. The amount of this award will correspond to the fair market value of the expropriated investment immediately before the expropriation takes place or is made public, following the first situation.
4. This fair market value shall be expressed in a freely convertible currency based on the exchange rate in force for that currency at the time referred to in paragraph 3 of this Article. The allowance will also include interest at a commercial rate established on the basis of the market for the currency concerned, from the date of expropriation to the date of its effective payment.
5. The investor whose investments are expropriated shall be authorized to request a review as soon as possible, by a judicial authority or by any other competent authority of the Contracting Party concerned, of the case of the investor, including the assessment of its investments and the payment of compensation in accordance with the principles set out in this Article.
ARTICLE 6
Compensation and loss
1. Where the investments made by investors of one of the Contracting Parties have suffered damage or losses due to a war or other armed conflict that does not arise from the activities of the Contracting Party of which investors depend, unrest, revolution, riot or similar events occurring in the territory of the other Contracting Party, they shall benefit, on the part of the latter, from a treatment, in respect of the
2. Without prejudice to the provisions of paragraph 1^er of this Article, the investors of one of the Contracting Parties that, in any of the situations referred to in this paragraph, have suffered damage or loss in the territory of the other Contracting Party due:
(a) the requisition of their property or part thereof by the forces or authorities of that Party;
(b) the destruction of their property or part thereof by the forces or authorities of that Party without the result of a combat action or ordered by the necessity of the situation,
will be given immediate restitution and, where appropriate, adequate and effective compensation for damages or losses incurred during the requisition period or due to the destruction of their property. The resulting payments will be made without delay, in a freely convertible currency.
3. The investor whose investments have suffered damage or loss in accordance with the provisions of paragraph 2 of this Article shall be authorized to request a review as soon as possible, by a judicial authority or by any other competent authority of the Contracting Party concerned, of the case of the investor, including the assessment of its investments and the payment of compensation in accordance with the principles defined in paragraph 2 of this Article.
ARTICLE 7
Transfers
1. Each Contracting Party shall ensure that all payments relating to an investment made on its territory by an investor of the other Contracting Party may be transferred freely and without delay to or from its territory. These transfers will include, but not limited to:
(a) initial capital and additional amounts to maintain or develop investment;
(b) income;
(c) amounts intended for the settlement of contractual obligations, loan refunds, royalty payments, management commissions, licence fees and other similar fees;
(d) the proceeds of the total or partial sale or liquidation of the investment;
(e) compensation paid under Articles 5 and 6 of this Agreement;
(f) payments arising from the settlement of investment disputes.
2. Nationals of each Contracting Party authorized to work for an investment in the territory of the other Contracting Party will also be allowed to transfer an appropriate quotity of their remuneration to their country of origin.
3. Transfers will be made in a freely convertible currency, in the course applicable to cash transactions in the currency used.
4. Each Contracting Party shall ensure that the interest at the market-based trade rate for the currency concerned, as part of the compensation, is calculated for the period from the time the events referred to in Articles 5 and 6 occurred to the date of the transfer of payments, and that the payments are made in accordance with the provisions of paragraphs 1^er and 2 of this article.
5. Each of the Contracting Parties shall ensure that transfers are made without delay, without any other costs than usual taxes and costs.
ARTICLE 8
Subrogation
If any of the Contracting Parties or agency designated by the Contracting Party shall make a payment under a bond, warranty or insurance contract in respect of an investment made by an investor in the territory of the other Contracting Party, the latter Contracting Party shall recognize the assignment to the first Contracting Party or to the agency designated by the latter of all rights and claims of the said investor as
ARTICLE 9
Application of other legal provisions
If the legislation of one or the other Contracting Party or of the international obligations currently in force or contracted in the future by the Contracting Parties, in addition to this Agreement, contain a general or particular regulation, by which the investment of investors of the other Contracting Party shall be treated more favourable than that granted by this Agreement, such regulation, provided that it is more favourable, shall prevail over this Agreement.
ARTICLE 10
Settlement of disputes between one of the Contracting Parties and an investor of the other Contracting Party
1. Any dispute between one of the Contracting Parties and an investor of the other Contracting Party on an investment will be settled through negotiations.
2. Failure to resolve the dispute referred to in paragraph 1^er of this section within three (3) months from the date of written notification, the dispute shall be submitted, at the request of the investor:
(a) a competent court of the Contracting Party in the territory of which the investment was made; or
(b) the conciliation or arbitration of the International Centre for the Settlement of Investment Disputes (IRDI), established by the Convention for the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on 18 March 1965; or
(c) an ad hoc arbitral tribunal which, unless otherwise agreed between the parties to the dispute, shall be established in accordance with the rules of arbitration of the United Nations Commission on International Trade Law (UNCAC).
Both parties to the dispute irrevocably agree that any investment dispute is subject to the courts or alternative arbitration procedures referred to above. This consent implies that they do not demand the exhaustion of domestic administrative or judicial remedies.
3. An investor who has submitted the dispute to a national jurisdiction may, however, appeal to one of the arbitration tribunals referred to in paragraph 2 of this article if, before a judgment has been rendered on the subject matter of the dispute by a national court, the investor declares that he will no longer pursue the matter by domestic remedies.
4. The arbitral award shall be final and binding; will be implemented in accordance with national legislation; each Contracting Party shall ensure the recognition and enforcement of that award in accordance with its applicable laws and regulations.
5. None of the Contracting Parties, a party to a dispute, shall raise any objection, at any stage of the conciliation or arbitration proceedings or the execution of an arbitration award, as the investor, an adverse party to the dispute, would have received compensation covering all or part of its losses pursuant to a guarantee or insurance.
ARTICLE 11
Settlement of disputes between Contracting Parties
1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall be settled, if possible, through negotiations.
2. If the dispute referred to in paragraph 1^er of this Article may not be settled within six (6) months, at the request of either Contracting Party, it shall be submitted to an arbitral tribunal.
3. The said ad hoc arbitral tribunal shall be constituted in the following manner: each Contracting Party shall designate an arbitrator and these two arbitrators shall jointly appoint a national of a third State who shall serve as President. Arbitrators shall be appointed within two (2) months from the date on which one of the Contracting Parties informed the other Contracting Party of its intention to submit the dispute to an arbitral tribunal, the President of which shall be appointed after an additional two (2) months have elapsed.
4. If the time limits stipulated in paragraph 3 of this Article have not been met, one or the other Contracting Party may, in the absence of any other relevant arrangement, invite the President of the International Court of Justice to make the necessary appointments. If the President of the International Court of Justice is a national of either Contracting Party or if, for another reason, he or she is unable to exercise that function, the Vice-President or, if he or she is also unable to exercise that function, the highest member in the International Court of Justice would be invited, under the same conditions, to make the necessary appointments.
5. The court will set its own procedural rules.
6. The arbitral tribunal shall make its decisions in accordance with the provisions of this Agreement and the rules of international law. It shall make its decisions by a majority vote; its decisions will be final and binding.
7. Each Contracting Party shall bear the costs of its own member of the court, as well as the costs of its legal representation in the arbitration proceedings. The costs of the President and other costs of the arbitration proceedings shall be borne equally by both Contracting Parties. The court may, however, provide for a further apportionment of costs.
ARTICLE 12
Implementation of the Agreement
This Agreement shall apply to investments made prior to or after its entry into force but shall not apply to disputes relating to an investment that occurred prior to its entry into force or to claims that were settled prior to its entry into force.
ARTICLE 13
Entry into force
This Agreement shall enter into force on the thirtieth day after the date of receipt of the last notification by diplomatic means by which each Contracting Party shall notify the other Contracting Party that the domestic legal formalities for the entry into force of this Agreement have been completed.
ARTICLE 14
Duration and denunciation
1. This Agreement shall remain in force for a period of twenty (20) years and shall be renewed by periods of twenty (20) years, unless one year before the expiry of the original period of validity or any subsequent period, one of the Contracting Parties shall not notify the other Contracting Party of its intention to denounce the Agreement. In this case, the notification of denunciation will be released on the expiry of the current twenty (20) year period.
2. With regard to investments made prior to the date on which the notification of denunciation of this Agreement shall be effected, the provisions of this Agreement shall remain applicable to them for a period of twenty (20) years from the date of denunciation of this Agreement.
IN WITNESS WHEREOF, the undersigned representatives, duly authorized to do so, have signed this Agreement.
DONE in Brussels, on 31 October 2001, in two original copies, in French, Dutch, English and Croatian, all texts being equally authentic. The English language text will prevail in the event of a discrepancy of interpretation.
For the Belgian Economic Union:
For the Government of the Kingdom of Belgium, acting on behalf of the Government of the Grand Duchy of Luxembourg:
The Prime Minister,
G. VERHOFSTADT
For the Walloon Government:
The Prime Minister,
G. VERHOFSTADT
For the Flemish Government:
The Flemish Minister of Interior Affairs, Public Service and External Policy,
P. VAN GREMBERGEN
For the Government of the Brussels-Capital Region:
The Prime Minister,
G. VERHOFDSTADT
For the Republic of Croatia:
The Prime Minister,
RACAN