11 JUIN 2002. - An Act to approve the Agreement between the Belgian Economic Union and the Government of the Republic of El Salvador concerning the mutual encouragement and protection of investments, done in Brussels on 12 October 1999 (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 El Salvador concerning the mutual encouragement and protection of investments, made in Brussels on 12 October 1999, will bring forth its full and complete 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 11 June 2002.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister, Deputy Minister for Foreign Affairs,
Ms. NEYTS-UYTTEBROECK
Seen and sealed the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Notes
(1) Session 2001-2002.
Senate.
Documents: Bill, tabled on 2 February 2001, No. 2-642/1. - Report, no. 2-642/2. - Text adopted by the Commission.
Annales parlementaire : Discussion, session du 28 février 2002. - Vote, meeting of 28 February 2002.
Room.
Documents: Project transmitted by the Senate, No. 50-1669/1. - Text adopted in plenary and subject to Royal Assent, No. 50-1669/2.
Annales parlementaire : Discussion, session du 28 mars 2002. - Vote, meeting of 28 March 2002.
(2) This Agreement entered into a security clearance on 18 November 2002.
(3) See also the Decree of the Walloon Region of 12 July 2001 Belgian Monitor of 1 August 2001), the Decree of the Flemish Region of 17 May 2002 (Moniteur belge du 2 juillet 2002) and the Order of the Brussels-Captale Region of 7 February 2002 (Moniteur belge du 24 décembre 2002)
AGREEMENT BELGO-LUXEMBOURGEOISE ECONOMIC UNION AND THE GOVERNMENT OF THE REPUBLIC OF EL SALVADOR CONCERNING ENCOURAGEMENT AND PROTECTION OF INVESTMENTS
the Government of the Kingdom of Belgium,
acting both in his name and in the name of
Government of the Grand Duchy of Luxembourg, under existing agreements,
the Walloon Government,
Government of the Flemish Government,
and the Government of the Brussels-Capital Region,
on the one hand
and
the Government of the Republic of El Salvador,
on the other hand
("hereinafter referred to as the "Contracting Parties")
wishing to strengthen 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,
agreed that:
ARTICLE 1^er
Definitions
For the purposes of this Agreement,
1. The term "investors" means:
(a) "nationals" that is, any natural person who, according to the laws of the Kingdom of Belgium, the Grand Duchy of Luxembourg or the Republic of El Salvador, is considered a citizen of the Kingdom of Belgium, the Grand Duchy of Luxembourg or the Republic of El Salvador respectively;
(b) - For the Economic Union Belgo-Luxembourgeoise, the "societies", that is, any legal entity constituted in accordance with the laws of the Kingdom of Belgium or the Grand Duchy of Luxembourg and having its head office in the territory of the Kingdom of Belgium or the Grand Duchy of Luxembourg.
- For the Republic of El Salvador, legal persons constituted in accordance with the laws of any country and controlled directly or indirectly by natural persons of that Party or by legal persons whose headquarters is located in the territory of that Party where the legal person exercises its principal economic activity.
2. The term "investments" 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.
These include, but are not limited to, investments within the meaning of this Agreement:
(a) movable and immovable property and other real rights such as mortgages, privileges, leases, usufructs and similar rights;
(b) shares, social shares and all other forms of participation, whether minority or indirect, in companies incorporated in the territory of one of the Contracting Parties;
(c) obligations, receivables and rights to all benefits of economic value;
(d) copyright, industrial property rights, technical processes, names filed and the trade fund;
(e) concessions of public or contractual 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 affects their investment qualification within the meaning of this Agreement.
3. The term "income" refers to amounts generated by an investment, and in particular, but not exclusively, profits, interests, capital increments, dividends, royalties or allowances.
4. The term "territory" means:
- For the Belgian-Luxembourg Economic Union, the territory of the Kingdom of Belgium and the territory of the Grand Duchy of Luxembourg and the maritime zones, that is, the marine and submarine zones, which extend beyond the territorial waters of the State concerned and on which it exercises, in accordance with international law, its sovereign rights and jurisdiction for the purposes of exploration, exploitation and exploitation.
- For the Republic of El Salvador, the land, sea and air space subject to the sovereignty of each Party, in accordance with the respective laws and international law.
ARTICLE 2
Investment promotion
1. Each Contracting Party shall encourage investment in its territory by investors of the other Contracting Party and admit such investments in accordance with its legislation.
2. In particular, each Contracting Party will authorize the conclusion and execution of licence contracts and trade, administrative or technical assistance agreements, provided that such activities have a relationship with investments.
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, such investments shall enjoy constant security and protection, excluding any unjustified or discriminatory measures that may hinder, in law or in fact, their management, maintenance, use, enjoyment or liquidation.
3. The treatment and protection defined in paragraphs 1 and 2 are at least equal to those enjoyed by investors of a third State and are in no way less favourable than those recognized by international law.
4. However, this treatment and protection do 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, customs union, common market or other forms of regional economic organizations.
ARTICLE 4
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 must be met
(a) measures shall be taken by law;
(b) they are neither discriminatory nor contrary to a specific commitment;
(c) they have provisions for the payment of adequate and effective compensation.
3. The amount of the allowances will be the market value of the investments concerned on the day before the day or the measures taken or made public.
Compensation shall be paid in the currency of the State to which the investor belongs or in any other convertible currency. They will be paid without delay and freely transferable. They will bear interest at the normal bank rate from the date of their fixation to that of their payment.
4. Investors of one of the Contracting Parties whose investments would have suffered damage from war or other armed conflict revolution, state of emergency or revolt in the territory of the other Contracting Party shall, on the part of the latter, receive at least equal treatment to that granted to investors of the most-favoured nation in respect of restitution, compensation, compensation or other compensation.
5. For substances regulated by this Article, each Contracting Party shall grant to investors of the other Party at least equal treatment to that it reserves in its territory to investors of the most favoured nation. Such treatment would in no way be less favourable than that recognized by international law.
ARTICLE 5
Transfers
1. Each Contracting Party shall grant investors of the other Contracting Party the free transfer, to or from its territory, 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 rights, as well as the remuneration of expatriated personnel;
(c) Investment income;
(d) the proceeds of the total or partial liquidation of investments, including capital gains or increases;
(e) compensation paid pursuant to section 4.
2. Nationals of each of the Contracting Parties authorized to work for an investment in the territory of the other Contracting Party are also authorized to transfer an appropriate quotity of their remuneration to their countries of origin.
3. Transfers are made in a freely convertible currency, in the course applicable to cash transactions in the currency used.
4. 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 fees and fees.
5. The guarantees provided for in this article are at least equal to those granted to investors of the most favoured nation.
ARTICLE 6
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 recognizes that the rights and shares of investors are transferred to the Contracting Party or the public body concerned.
2. With respect to transferred rights, the other Contracting Party may apply to the insurer, which is subrogated in the rights of compensation investors, the obligations that are legally or contractually binding on the insurers.
ARTICLE 7
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 existing international conventions or endorsed by the Parties in the future, investors of the other Contracting Party may avail themselves of the provisions that are most favourable to them.
ARTICLE 8
Special agreements
1. Investments that have been the subject of a particular agreement between one of the Contracting Parties and investors of the other Party shall be governed by the provisions of this Agreement and those of that particular agreement.
2. Each of the Contracting Parties shall at any time ensure compliance with its commitments to investors of the other Contracting Party.
ARTICLE 9
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, accompanied by a sufficiently detailed aide-memoire on the part of the most diligent party.
To the extent possible, the parties will attempt to settle the dispute amicably by negotiation, by resorting to the expertise of a third party, or by conciliation between the Contracting Parties by diplomatic means.
2. In the absence of amicable settlement by direct arrangement between the parties to the dispute or by diplomatic conciliation within six months of its notification, the dispute shall be submitted, at the option of the investor, either to the competent jurisdiction of the State or 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 waive the requirement that domestic administrative or judicial remedies be exhausted first.
3. In the event of recourse to international arbitration, the dispute is submitted to the International Centre for the Settlement of Investment Disputes (C.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 on 18 March 1965.
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 6 of this Agreement.
5. The arbitral tribunal shall rule on the basis of the domestic law of the Contracting Party party to the dispute in the territory of which the investment is located, including the rules relating to conflicts of laws, the provisions of this Agreement, the terms of the particular agreement that would have been reached on the investment, as well as the principles of international law.
6. Arbitration awards are final and binding for the parties to the dispute. Each Contracting Party undertakes to enforce the awards in accordance with its national legislation.
ARTICLE 10
Most-favoured nation
For all matters relating to the processing of investments, investors from each of the Contracting Parties shall, on the territory of the other Party, benefit from the treatment of the most favoured nation.
ARTICLE 11
Different interpretations
or of application between Contracting Parties
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 of the Contracting Parties, to an arbitration procedure implemented, 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 designate a third State national who shall be president of the College of Arbitrators.
If these deadlines have not been observed, either Contracting Party shall invite the President of the International Court of Justice to proceed with the appointment of the arbitrator or non-designated arbitrators.
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 is prevented from exercising that function, the Vice-President of the International Court of Justice shall be invited to proceed with that appointment.
4. The college will set 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 college shall be borne by the Contracting Parties equally.
ARTICLE 12
Previous investments
This Agreement also applies 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 its laws and regulations.
ARTICLE 13
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 six months before the expiry of its validity period, it shall be automatically renewed for a further period of ten years, 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. The investments made prior to the expiry date of this Agreement shall remain subject to it for a period of ten years from that date.
IN WITNESS WHEREOF, the undersigned representatives, duly authorized by their respective Governments, have signed this Agreement.
Done in Brussels on 12 October 1999, in two original copies, each in French, Dutch and Spanish, all texts being equally authentic.