Posted the: 2003-12-15 Numac: 2003015184 FEDERAL Foreign Affairs, external trade and development COOPERATION PUBLIC SERVICE 13 May 2003. -Law approving the agreement between the Belgo-Luxembourg Economic Union and the Republic of Croatia concerning the encouragement and reciprocal investment protection, done at Brussels on 31 October 2001 (1) (2) (3) ALBERT II, King of the Belgians, to all, present and future, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a matter referred to in article 77 of the Constitution.
2. the agreement between the Belgo-Luxembourg Economic Union and the Republic of Croatia concerning the encouragement and reciprocal investment protection, done at Brussels on 31 October 2001, released its full and complete effect.
Promulgate this Act, order it to be coated with the seal of State and published by le Moniteur.
Given to Brussels, 13 May 2003.
ALBERT by the King: L. MICHEL the Minister, Minister of Foreign Affairs, Deputy to the Minister for Foreign Affairs, and for Agriculture, Mrs A. NEYTS-UYTTEBROECK sealed with the seal of the State: the Minister of Justice, Mr. VERWILGHEN _ Notes (1) 2002-2003 Session.
Documents. -Bill filed on 3 February 2003, no. 2 - 1452/1.
-Report on behalf of the Committee, no. 2-1452/2.
Parliamentary Annals. -Discussion, meeting of March 13, 2003. -Vote meeting of March 13, 2003.
Documents. -Draft transmitted by the Senate, no. 50-2375/1. -Text adopted in plenary and subject to Royal assent, meeting No. 50-2375/2.
Parliamentary Annals. -Discussion, session of 3 April 2003. -Vote meeting of April 3, 2003.
(2) see also the Decree of the Flemish community / the Flemish Region of 4 April 2003 (Moniteur belge of 6 May 2003), the Decree of the Walloon Region of 13 November 2002 (Moniteur belge of 4 December 2002), the order of the Brussels-Capital Region from June 12, 2002 (Moniteur belge of 12 July 2002).
(3) this Agreement shall enter into force on 28 December 2003.
AGREEMENT between the Belgo-Luxembourg Economic Union and the Republic of Croatia concerning the encouragement and protection reciprocal investments the Government of Kingdom of Belgium, acting both on its behalf 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');
Desiring to encourage the development of economic cooperation between them, in what concerns investments by investors of one of the Contracting Parties in the territory of the other Contracting Party;
AWARE of what the conclusion of an agreement on the treatment to be given to these investments will be to stimulate the flow of private capital and the economic development of the Contracting Parties;
Agreement as to the fact that setting up a stable framework for investment will contribute to optimise the use of economic resources and increase prosperity;
HAVING decided to conclude the agreement concerning the encouragement and reciprocal protection of investments;
ARE agreed as follows: ARTICLE 1 Definitions for the purposes of the agreement: 1. the term "investment" means any and all assets contribution directly or indirectly in cash, in kind or in services, invested or reinvested in any sector of economic activity, whatever it is, by investors of one of the Contracting Parties in the territory of the other Contracting Party in accordance with the laws and regulations of the latter and includes (, but not exclusively: a) movable and immovable property and any other real rights such as mortgages, privileges, liens, usufruct and similar rights;
(b) shares, stocks, bonds and other forms of equity in the capital of companies;
(c) the claims and rights to all benefits of economic value, including any loan granted to create economic value;
d) intellectual property rights, including, but not limited to, copyright and neighbouring rights, industrial property rights, trade-marks, patents, industrial designs and technical processes, the titles of protection of plant varieties, know-how, trade secrets, trade names and goodwill;
(e) rights for all economic and commercial activities, under the law or a contract, including concessions as regards prospecting, cultivation, extraction or exploitation of natural resources).
Any change in the form in which assets are invested or reinvested will affect their investment quality.
2. the term "investor" means, for each of the Contracting Parties: has) any natural person, a national of one of the Contracting Parties, which makes an investment in the territory of the other Contracting Party;
(b) any legal person formed or even duly organized in accordance with the laws and regulations of one of the Contracting Parties, having its headquarters and economic activity on the territory of that Contracting Party and making an investment in the territory of the other Contracting Party.
3. the term "earnings" means any amount produced by an investment and in particular, but not exclusively, profits, dividends, interest, capital increases, royalties, license patents and other royalty fees. Reinvested earnings will benefit from the same treatment as the initial investment.
4. the expression 'without delay' means the period usually provided for the transfer of payments.
5. 'freely convertible currency' means any currency widely traded on markets Exchange international and widely used in international transactions.
6. the term "territory" means: in relation 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 sea, including the seabed and subsoil areas adjacent to the outer limit of the territorial sea of one or other of the above-mentioned States, on which the State concerned has, in accordance with international law, sovereign rights and jurisdiction for the purpose of exploration exploitation and conservation of natural resources;
with respect to the Republic of Croatia: the territory of the Republic of Croatia as well as the maritime areas adjacent to the outer limit of the territorial sea, including the seabed and subsoil, over which the Republic of Croatia exercises, in accordance with international law, sovereign rights and jurisdiction.
ARTICLE 2 promotion and acceptance of investment 1.
Each Contracting Party will encourage and create favourable conditions so that the investors of the other Contracting Party invest in its territory and admit such investments in accordance with its laws and regulations.
2. at the request of another Contracting Party, each Contracting Party shall endeavour to inform the other Contracting Party of the possibilities of investments in its territory, to encourage reciprocal investment flows.
3. each Contracting Party shall accord, if necessary under its law, the necessary permits in connection with the investments in its territory, including the permissions required to engage managers and technicians, regardless of nationality, at the option of the investor.
4. in respect of its laws, regulations and procedures regarding entry, stay and work of natural persons on its territory, each Contracting Party will allow the command staff, including executives and technicians employed in respect of investments made by an investor of the other Contracting Party, irrespective of the nationality of the persons concerned, to enter, stay and work in its territory. The close personal said of command (spouse and minor children) will receive similar treatment with regard to entry and temporary stay in the territory of the contracting party host.
ARTICLE 3 Protection of investments 1.
Each Contracting Party shall accord in its territory full protection and security to investments and revenues for investors of the other Contracting Party. No Contracting Party shall be constrained, through arbitrary, abusive, or discriminatory, development, management, maintenance, use, enjoyment, expansion, sale, or, where applicable, the liquidation of such investments.
Each Contracting Party shall comply with any other obligation it may have contracted investments or specific investors of the other Contracting Party.
2. the investments or income of the investors of each Contracting Party in the territory of the other Contracting Party will receive fair and equitable treatment in accordance with international law and the provisions of this agreement.
3 none of the Contracting Parties will submit to mandatory conditions on its territory investments of investors of the other Contracting Party, as regards the acquisition of materials, means of production, operation or transport
and the marketing of their products, nor will take similar decisions with abusive or discriminatory effects.
4 each Contracting Party shall publish without delay or will make available to the public in any other way its laws, regulations, procedures and administrative rulings and judgments of generality as well as international agreements which may affect the investments of investors of one of the Contracting Parties in the territory of the other Contracting Party.
ARTICLE 4 national treatment and most favoured nation 1 treatment. None of the Contracting Parties shall grant its territory investments and revenues for investors of the other Contracting Party a treatment less favourable than that it accords to investments and revenues of its own investors, investments or investors of any third State revenues, according to the most favourable to the investors concerned.
2 none of the Contracting Parties shall grant within its territory to the investors of the other Contracting Party, as regards management, the maintenance, enjoyment, use or disposal of their investments, a treatment less favourable than that it accords to its own investors or to investors of any third State, following the most favourable to the investors concerned.
3. the provisions of paragraphs 1 and 2 of this Article may not be interpreted as obliging one Contracting Party 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 by virtue: has) of a customs union or of an economic union, a zone of free trade or a similar international agreement existing or future;
(b) an agreement or an international agreement regarding partially or totally the imposition, in which one or other of the Contracting Parties is or becomes party.
ARTICLE 5 measures custodial and restrictive property 1. None of the Contracting Parties take measures direct or indirect expropriation or nationalization or any other measure having an equivalent effect with respect to the investment of an investor of the other Contracting Party in its territory (referred hereinafter as "expropriation"), except if these measures are taken: a) in the public interest, b) on a non-discriminatory basis, c) according to legal procedure (,) and (d) on payment without delay to effective and adequate compensation.
2. the allowance will be paid without delay.
3. the amount of this indemnity will correspond to the fair market value of the investment expropriated immediately before the expropriation took place or not be made public, following the first situation that presents itself.
4. the fair market value shall be expressed in freely convertible currency on the basis of the exchange rate in effect for this 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 until the date of effective payment.
5. the investor whose investments are expropriated will be allowed to request the review as soon as possible, by a judicial authority or any other competent authority of the Contracting Party concerned, the case of the investor, including the assessment of investments and the payment of compensation in accordance with the principles set out in this Article.
ARTICLE 6 compensation for damages and losses 1. When investments by investors of one of the Contracting Parties suffered damages or losses due to war or other armed conflict does not arise from activities of the Contracting Party of which depend on investors, unrest, revolution, riot or similar events that occurred in the territory of the other Contracting Party , they will benefit from the part of the latter, for treatment, with regard to the refunds, compensation, compensation or any other damages, which shall be no less favourable than that accorded by the latter Contracting Party to its own investors or to investors of any third State, following the most favourable to the investors concerned.
2. without prejudice to the provisions of paragraph 1 of this article, the investors in one of the Contracting Parties which, in one of the situations referred to in paragraph, have suffered, on the territory of the other Contracting Party, damage or losses due: has) at the request of their property or a part thereof by the forces or authorities of the latter;
(b) to the destruction of their property or a part thereof by the forces or authorities of this last part unless it is the result of a combat action or commissioned by the need of the situation, will benefit without delay a refund and, where appropriate, adequate and effective compensation for damage or losses suffered during the period of requisition or due to the destruction of their property.
Payments arising therefrom will be made without delay in freely convertible currency.
3. the investor whose investments have suffered damage or loss in accordance with the provisions of paragraph 2 of this article will be allowed to request the review as soon as possible, by a judicial authority or any other competent authority of the Contracting Party concerned, the case of the investor, including an assessment of its investments and the payment of compensation in accordance with the principles set out in paragraph 2 of this article.
ARTICLE 7 transfers 1.
Each Contracting Party will ensure that all payments relating to an investment in its territory by an investor of the other Contracting Party can be transferred freely and without delay to the territory or at the start of it. These transfers will include, but not exclusively: has) the initial capital and additional amounts intended to maintain or develop the investment;
(c) amounts intended for regulation of contractual obligations, loan reimbursements, payment of royalties, management fees, licence fees and other similar charges.
(d) the proceeds of sale or total or partial investment liquidation);
e) allowances paid in respect of Articles 5 and 6 of this agreement;
(f) payments arising from the settlement of investment disputes).
2. the nationals of each of the Contracting Parties authorised to work as an investment in the territory of the other Contracting Party, will also be allowed to transfer a proportion appropriate remuneration in their country of origin.
3. transfers will be made in freely convertible currency at the applicable at the date of these course to cash transactions in the currency used.
4 each Contracting Party will ensure that the interest at a commercial rate established on the basis of the market for the relevant currency, as part of the compensation to be calculated for the period extending from the moment where the events referred to in articles 5 and 6 have occurred up to the date of the transfer of payments, and payments are made in accordance with the provisions of paragraphs 1 and 2 of this article.
5. each Contracting Party shall ensure that transfers are carried out without delay, without charges other than usual costs and taxes.
ARTICLE 8 Subrogation if a Contracting Party or the body designated by that carries out a payment under a performance bond, a guarantee or a contract of insurance given in respect of an investment by an investor in the territory of the other Contracting Party, this last Contracting Party will recognize the assignment to the first Contracting Party or to the body designated by it of all rights and claims of the investor said, as well as the right to the first Contracting Party or to the body designated by it, to exercise these rights and to assert such claims, by way of subrogation, under the same conditions as the transferor.
ARTICLE 9 Application of other legal provisions if the legislation of the one or the other Contracting Party or international current or contracted obligations in the future by the Contracting Parties, in addition to the present agreement, contain a regulation of General or individual, by virtue of which the investments of investors of the other Contracting Party receive more favourable treatment than that accorded by this agreement , this regulation, provided that it is more favourable, will prevail over this agreement.
ARTICLE 10 dispute between one of the Contracting Parties and an investor of the other Contracting Party 1. Any dispute arising between a Contracting Party and an investor of the other Contracting Party concerning an investment will be settled through negotiations.
2. absence of a settlement of the dispute referred to in paragraph 1 of the present article in three (3) months from the date of the written notice, the dispute will be submitted, at the request of the investor: has) to a competent court of the party
Contracting on the territory of which the investment was made; or (b)) to conciliation or to arbitration by the international Centre for the settlement of disputes relating to the investments (ICSID), established by the Convention for the settlement of disputes relating to investments between States and nationals of other States, opened for signature at Washington on 18 March 1965; or c) to an ad hoc arbitration tribunal which unless otherwise agreed between the parties to the dispute, shall be established under the arbitration rules of the United Nations international trade law (UNCITRAL) Commission.
The two parties to the dispute consent irrevocably to ensure that any dispute concerning an investment is subject to the courts or alternative arbitration procedures referred to above. This consent implies that they waive require exhaustion of internal judicial or administrative remedies.
3. an investor who has submitted the dispute to a national court may nevertheless appeal to one of the arbitral tribunals referred to in paragraph 2 of this article if, before a judgment has been rendered on the subject of the dispute by a national court, said investor declares not to pursue the matter by internal remedies.
4. the arbitration award shall be final and binding; It will be executed in accordance with national legislation; Each Contracting Party will ensure the recognition and execution of said sentence in accordance with its laws and regulations applicable in the present case.
5 none of the Contracting Parties, a party to a dispute, will raise objection, at any stage of the conciliation proceedings arbitration or enforcement of an arbitration award, the fact that the investor party opposing to the dispute, would have received an indemnity covering all or part of its enforcement of a guarantee or insurance losses.
ARTICLE 11 settlement of disputes between the Contracting Parties 1. Any dispute between Contracting Parties concerning the interpretation or application of this agreement will be resolved, if possible, through negotiations.
2. If the dispute referred to in paragraph 1 of the present article could not be settled within six (6) months, it will be submitted, at the request of the one or the other Contracting Party, to an arbitration tribunal.
3. the said ad hoc arbitral tribunal will be constituted as follows: each Contracting Party shall appoint an arbitrator and the two arbitrators shall appoint by common accord a national of a third State which will exercise the office of president.
The arbitrators will 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, whose President will be named after an additional period of two (2) months has elapsed.
4. If the time limits stipulated in paragraph 3 of this article have not been fulfilled, one or the other Contracting Party may, in the absence of any other relevant agreement, 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 another Contracting Party or if for any other reason, he is unable to perform this function, the Vice-Chairman or, if it is also unable to carry out this function, the highest rank of the International Court of Justice Member would be invited under the same conditions, to make the necessary appointments.
5. the tribunal shall determine its own rules of procedure.
6. the arbitral tribunal shall take its decisions in accordance with the provisions of this agreement and the rules of international law. It will take its decisions by a majority of votes;
its decisions shall be final and binding.
7. each Contracting Party shall bear the costs of its own Member of the tribunal, as well as the costs of legal representation in the arbitration proceedings. President and the other expenses of the arbitration shall be borne equally by the two Contracting Parties. However, the tribunal may include in its award a different apportionment of costs.
ARTICLE 12 Application of the agreement this Agreement shall apply to investments made before or after its entry into force, but shall not apply to disputes relating to an investment that occurred before its entry into force or the claims that have been settled before its entry into force.
ARTICLE 13 entry into force this Agreement shall enter into force the thirtieth day following the date of receipt of the last notification through diplomatic channels by which each Contracting Party shall notify the other Contracting Party that the internal legal procedures 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 for periods of twenty (20) years, unless one year before the expiry of the initial period of validity or any subsequent period, one of the Parties notifies the other Contracting Party his intention to terminate the agreement. In this case, the notification of denunciation will release its effects upon expiry of the period of twenty (20) years ongoing.
2. with regards to investments made before the date on which the notification of denunciation of the agreement will be released its effects, the provisions of this agreement will remain applicable for a period of twenty (20) years from the date of termination of this agreement to them.
IN witness whereof, the undersigned, being duly authorized representatives to that effect, have signed this agreement.
DONE at Brussels, 31 October 2001, in two originals, in the languages Dutch, French, English and Croatian, all texts being equally authentic. The English text shall prevail in case of conflict of interpretation.
For the Belgo-Luxembourg Economic Union: for the Government of the Kingdom of Belgium, acting both on its behalf and 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 for interireures 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: Prime Minister RACAN