14 MAI 2000. - An Act to approve the Agreement between the Belgian Economic Union and the Government of the Republic of the Philippines concerning the mutual encouragement and protection of investments, signed in Manila on 14 January 1998 (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 Government of the Republic of the Philippines concerning the mutual encouragement and protection of investments, signed in Manila on 14 January 1998, will come out its 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 14 May 2000.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
The Secretary of State for Foreign Trade,
P. CHEVALIER
Seal of the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Notes
(1) Session 1999-2000.
Senate:
Documents. - Bill, tabled on 22 December 1999, No. 2-253/1. - Report, no. 2-253/2. - Text adopted by the Commission, No. 2-253/3
Annales parliamentarians. - Discussion. Session of February 24, 2000. - Vote. Session of February 24, 2000.
House of Representatives.
Documents. - Project transmitted by the Senate, No. 50-471/1. - Text adopted in plenary and subject to Royal Assent, No. 50-471/2.
Annales parliamentarians. - Discussion. Session of 6 April 2000. - Vote. Session of 6 April 2000.
(2) See also the Decree of the Flemish Community of 7 December 2001 (Belgian Monitor of 18 January 20022), the Decree of the Walloon Region of 25 February 1999 (Belgian Monitor of 11 March 1999) and the Order of the Brussels-Capital Region of 22 April 1999 (Belgian Monitor of 22 October 1999).
(3) The exchange of instruments of ratification took place on 19 November 2003. Pursuant to article 14, this Agreement comes into force on 19 December 2003.

AGREEMENT BELGO-LUXEMBOURGEOISE ECONOMIC UNION AND THE GOVERNMENT OF THE REPUBLIC OF PHILIPPINES CONCERNING ENCOURAGEMENT AND PROTECTION OF INVESTMENTS
PREAMBULE
The Government of the Kingdom of Belgium, acting on behalf of the Government of the Grand Duchy of Luxembourg,
under existing agreements,
the Government of the Walloon Region,
the Government of the Flemish Region,
and the Government of the Brussels-Capital Region,
and
The Government of the Republic of the Philippines, hereafter referred to as the "Contracting Parties",
Desirous of strengthening their economic cooperation by creating favourable conditions for the realization of investments by nationals of one of the Contracting Parties in the territory of the other Contracting Party,
Recognizing that encouraging and protecting investment will contribute to the economic prosperity of both Parties;
The following agreed:
Article I
Definitions
For the purposes of this Agreement:
1. The term "investors" means:
(a) "nationals", i.e.:
(i) in respect of the Belgian Economic Union, any natural person who, according to the law of the Kingdom of Belgium or the Grand Duchy of Luxembourg, is considered a citizen of the Kingdom of Belgium or of the Grand Duchy of Luxembourg;
(ii) with regard to the Government of the Republic of the Philippines, the citizens of the Philippines within the meaning of the Constitution of the Republic of the Philippines.
(b) "societies", i.e., in the case of the two Contracting Parties, any legal person incorporated in the territory of one of the Contracting Parties in accordance with the legislation of that Party, having its head office in the territory of that Party, or controlled directly or indirectly by nationals of one of the Contracting Parties, or by legal persons having their head office in the territory of one of the Contracting Parties and constituted by that Party.
2. The term "investments" means any assets authorized in accordance with the respective laws and regulations of the Contracting Parties and in particular, but not exclusively:
(a) movable and immovable property and other real rights such as mortgages, privileges, leases, usufruits and similar rights;
(b) the shares and obligations of corporations or any other form of ownership of such companies;
(c) receivables relating to financial assets that are used to create an economic value and the rights to any benefit of an economic value;
(d) copyright, industrial property rights, technical processes, know-how, trademarks and names deposited;
(e) concessions to companies conferred by law or contract, including those relating to the prospecting, extraction or exploitation of natural resources.
No change in the form in which the assets were invested will affect their investment qualification.
3. The term "income" refers to the amounts generated by an investment and, in particular, not exclusively, the profits, interests, capital increments, dividends and royalties.
4. The term "territory" means:
(a) in respect of the Belgian Economic Union, the territory of the Kingdom of Belgium and the territory of the Grand Duchy of Luxembourg, as well as the maritime zones, that is, the marine and submarine zones that extend beyond the territorial waters of the State concerned and on which the State exercises, in accordance with international law, its sovereign rights and jurisdiction for exploration,
(b) with respect to the Republic of the Philippines, the national territory as defined in Article I of its Constitution.
Article II
Promotion and authorization of investments
Each Contracting Party shall encourage investment in its territory by investors from the other Contracting Party and admit such investments in accordance with its Constitution, laws and regulations. These investments will enjoy fair and equitable treatment.
Article III
Treatment of investments
1. In all matters relating to the processing of investments, investors from each Contracting Party shall enjoy the treatment of the most favoured nation 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 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.
3. The treatment and protection defined in paragraphs 1 and 2 shall be at least equal to those enjoyed by investors of a third State and shall not, in any case, be less favourable than those recognized by international law.
4. However, such treatment and protection will not extend to the privileges granted by a Contracting Party to investors of a third State, by virtue of its participation or association in a free trade zone, a customs union, a common market or any other form of regional economic organization or to any international agreement or regulation relating primarily or exclusively to taxation.
Article IV
Expropriation
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 an exemption from the provisions of paragraph 1^erthe 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 in a freely convertible currency.
3. The amount of the allowances will be the commercial value of the expropriated investments immediately before the intention to expropriate is made public. Allowances will be paid without delay and will be effectively feasible and freely transferable. In the event that compensation is paid with undue delay, the investor will receive moratoria interest.
Article V
Damage
Investors of one of the Contracting Parties whose investments would have suffered damage from 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 be at least equal to that granted by the latter Contracting Party plus Such treatment would in no way be less favourable than that recognized by international law.
Article VI
Transfers
1. Each Contracting Party shall grant investors of the other Contracting Party the free transfer, in a freely convertible currency, of all payments relating to an investment, including:
(a) amounts intended to establish, maintain or develop investment;
(b) amounts intended for the settlement of contractual obligations, including amounts necessary for the reimbursement of borrowings, royalties and other payments arising from licences, franchises, concessions and other similar fees, as well as the remuneration of expatriated personnel;
(c) income from investments and proceeds from the total or partial liquidation of investments, including capital gains or increases;
(d) compensation paid in accordance with Articles IV and V.
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 shall be made without undue delay, at the exchange rate in effect on the date of such transfers and in accordance with the laws, rules and regulations of the Contracting Party which has admitted the investment.
Article VII
Subrogation
1. If one of the Contracting Parties or an agency approved by the latter has covered, by an insurance contract or by any form of financial guarantee, the non-commercial risks associated with an investment made by one of its investors in the territory of the other Contracting Party, the latter shall recognize that the investor's rights are transferred to the first Contracting Party or to the agency concerned, where the first Contracting Party or the agency concerned has paid
2. Where one of the Contracting Parties or any of its agencies has paid compensation to its investor and is subrogated in the rights and claims of the investor, the investor shall not, unless the investor is authorized to act on behalf of the said Contracting Party or the agency making the payment, the said rights and claims to the other Contracting Party.
Article VIII
Rules applicable
Where an investment issue is governed 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 IX
Special agreements
1. Investments that have been the subject of a particular agreement between one of the Contracting Parties and investors of the other Contracting Party shall be governed by the provisions of this Agreement and those of that particular agreement.
2. Each Contracting Party undertakes to ensure at any time compliance with its obligations with respect to investors of the other Contracting Party.
Article X
Settlement of investment disputes between an investor and one of the contracting parties
1. Any type of dispute or disagreement, including disputes relating to the amount of compensation payable in the event of an expropriation or similar measure, occurring between one of the Contracting Parties and an investor of the other Contracting Party in respect of an investment or income of an investment made by the said investor in the territory of the first Party, shall be settled by amicable through negotiations.
2. Failure to resolve the dispute or disagreement in accordance with the provisions of paragraph 1^er of this section within six months of the application for settlement, the investor concerned may submit the dispute:
(a) the competent court of the Contracting Party in the territory of which the investment was made; or
(b) International Arbitration of the International Centre for the Settlement of Investment Disputes (I.C.R.D.I.), established by the Convention for the Settlement of Investment Disputes between States and Nationals of Other States, open for signature in Washington, D.C., on 18 March 1965. To that end, each Contracting Party shall give its early and irrevocable consent to any dispute being submitted to that arbitration. This consent implies that they waive the requirement to exhaust domestic administrative or judicial remedies.
3. As soon as the investor has submitted the dispute to the competent court of the Contracting Party in the territory of which the investment has been made or to international arbitration, the decision will be final.
4. For the purposes of this Article, any legal person constituted in accordance with the law of one of the Contracting Parties and whose majority of the shares is held, before the dispute arises, by investors of the other Contracting Party, shall be considered, in accordance with Article 25 (2) (b) of the Washington Convention referred to above, as a legal person of the other Contracting Party.
5. The arbitration award shall be final and binding for both parties and shall be enforced in accordance with the legislation of the Contracting Party in the territory of which the investment was made.
6. As soon as the dispute has been submitted to the competent court or to international arbitration in accordance with the provisions of this Article, none of the Contracting Parties shall pursue the settlement of the dispute by diplomatic means, unless the other Contracting Party has failed to submit or comply with any judgement, arbitral award, judicial decision or other decision of the competent international or local court.
Article XI
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 resolve the dispute, it shall be submitted, at the request of either Contracting Party, to an arbitral tribunal constituted, for each particular case, as follows:
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 make the necessary appointment or appointments.
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 XII
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 the other Contracting Party.
Article XIII
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 remains in force for a period of ten years.
Unless one of the Contracting Parties denounces it at least one year 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 notification filed at least one year 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 by their respective Governments, have signed this Agreement.
Done in Manila, Philippines on 14 January 1998, in two original copies, each in French, Dutch and English, 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 Republic of the Philippines:
For the Government of the Kingdom of Belgium, acting on behalf of the Government of the Grand Duchy of Luxembourg:
For the Government of the Walloon Region:
For the Government of the Flemish Region:
For the Government of the Brussels-Capital Region: