The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs communicates, on 25 September 1995. October 1994 was in
Riga signed agreement between the Government of the Czech Republic and the Government of Latvia
Republic on the promotion and reciprocal protection of investments.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified it.
The agreement on the basis of article 12, paragraph 1. 1 came into force on 1 January 2000.
Czech text of the agreement shall be published at the same time. In the English text of the agreement,
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
between the Government of the United Kingdom and the Government of the Republic of Latvia on the promotion and
mutual protection of investments
The Government of the United Kingdom and the Government of the Republic of Latvia (hereinafter referred to as "the Contracting
the parties '),
Desiring to intensify economic cooperation to the mutual
the benefit of both States,
intending to create and maintain favourable conditions for investments by investors
one State on the territory of the other State and
Noting that the promotion and reciprocal protection of investments in accordance with this
the agreement encourages entrepreneurial initiative in this area, have agreed
on the following:
The definition of the
For the purposes of this agreement:
1. The term "investment" refers to each assets invested in
accordance with the economic activities of an investor of one Contracting Party to the
the territory of the other Contracting Party in accordance with the laws of the other Contracting
Parties and shall, in particular, but not limited to:
a) movable and immovable property, as well as all the rights in rem, such as
mortgages, pledges, guarantees and similar rights;
(b)) shares, bonds, deposits by the company or any other forms of participation
of the companies;
(c) the claim or claims) cash to any activity having
the economic value associated with an investment;
(d)) intellectual property rights, including copyrights, the rights
of the trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill associated with the
e) rights arising from the law or from the contractual agreements, licenses and
the permit issued under the Act, including concessions for exploration, extraction,
the cultivation or use of natural resources.
Any change in the form in which the values are invested does not affect the
their status as investment.
2. the term "investor" means any natural or legal person,
that invests in the territory of the other Contracting Party.
and) the notion of "natural person" means any natural person having a
the nationality of either Contracting Party in accordance with its legal
b) "legal person" means, with regard to both parties
any company registered or established in accordance with its
jurisdiction and recognised as a legal person by law.
3. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, profits, interest, capital gains,
shares, dividends, licensing or other fees.
4. the term "territory" means the territory of the United States and the territory of Latvia
States, including the territorial sea and the continental shelf,
over which the State exercises in accordance with international law
sovereign rights for the purpose of exploration and exploitation of the natural resources of the
such an area.
The promotion and protection of investments
1. Each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party, to invest in its territory, and
will admit such investments in accordance with its legal system.
2. investments of investors of one or the other party will always have
ensures the proper and fair treatment and will enjoy full protection and
safety on the territory of the other Contracting Party.
National treatment and MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments or the proceeds of their
its own investors or investments of investors of any proceeds or
of a third State, if it is more convenient.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or
dispose of their investments, treatment which is the proper and fair
and no less favourable than that accorded to its own investors or
investors of any third State, if it is more convenient.
3. The provisions of paragraphs 1 and 2 of this article shall be interpreted so that the
one contracting party undertake to provide investors of the other Contracting
by such treatment, benefits or privileges, which may be one of the Contracting
page provide by:
and) a Customs Union or a free trade area or monetary Union or similar
international agreement, leading to such unions or institutions, or
other forms of regional cooperation, of which the Contracting Party is a
or it may be; or
(b)) the international agreement or arrangement relating wholly or mainly
Compensation for damage
1. If the investments of investors of one or the other party will suffer
damage as a result of war, armed conflict, a State of emergency,
the riot, insurrection, riot or other similar events on the territory of the
the other Contracting Party, that Contracting Party shall afford them treatment if
as for the restitution, damages, compensation or other settlement, no less
favourable than what the Contracting Party shall provide their own
investors or investors of third States.
2. Notwithstanding paragraph 1 of this article to the investors of a Contracting
the parties, who, during the events referred to in the preceding paragraph
suffered damage in the territory of the other Contracting Party of:
) and seize their assets, by the armed forces or by an
the other Contracting Party,
(b)) the destruction of their property by the armed forces or by the official authorities of the other
the Contracting Parties, which was not due to combat action or not
invoked when the necessity of the situation,
will be given fair and reasonable compensation for any damage suffered during the
grabbing or as a result of destruction of property. The resulting payments shall be without
late payment freely transferable in free convertible currency.
1. Investments made by investors of one Contracting Party in the territory of the other
the Contracting Party shall not be expropriated, nationalized or subjected to measures
having a similar effect (hereinafter referred to as "expropriation"), except when the
the following conditions are met:
and the expropriation will be done in) the public interest and in accordance with national
(b)) will not have a discriminatory character;
(c)) will be done only against payment of the immediate, adequate and effective
2. Such compensation shall be equal to the market value of the expropriated investments
immediately before the expropriation or before the intended expropriation
became publicly known, will include interest from the date of expropriation,
carried out without delay, will be immediately realisable and freely
shall not be transferable in freely convertible currency.
3. The investor has the right to request an urgent review of its
the case and the assessment of its investments to the judicial or other independent
authority of a Contracting Party in accordance with the principles contained in this article.
4. The provisions of paragraphs 1 and 2 of this article shall also apply to cases
When a Contracting Party expropriates the assets of a company that has been
registered or established in accordance with the applicable laws and regulations in the
any part of its own territory, and in which investors of the other Contracting
the parties own shares.
1. the Contracting Parties shall ensure that the transfer payments related to investments and
revenue. Transfers will be made in freely convertible currency, without restrictions, and
unnecessary delay. Such transfers shall include, but not
and) capital and additional amounts to maintain or increase the investment;
(b)) gains, interest, dividends and other current income;
(c) the amount of the repayment of loans);
d) license or other fees;
e) proceeds from the sale or liquidation of the investment;
f) income of natural persons.
2. for the purposes of this agreement, will be used as the conversion rates of foreign exchange
Rates valid as of the date of the transfer.
Assignment of rights
1. If a Contracting Party or its designated agency makes a
the payment of its own investor because of the guarantees given by the
relation to an investment in the territory of the other Contracting Party, the other Contracting
and each right or assignment) of the right of the investor to a Contracting Party
or her authorised agency, whether a transfer has occurred in accordance with the law or to the
the basis of the legal arrangements in this country, as well as,
(b)) that the Contracting Party or its designated agency is by way of referral
rights shall be entitled to exercise the rights and claims of the investor and to float
assume the commitments relating to the investment.
2. The assignee's rights or claims shall not exceed the rate of indigenous rights or
claims of the investor.
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
1. any dispute which may arise between an investor of one Contracting
the parties and the other Contracting Party in connection with an investment in the territory of the
the other party will be subject to negotiations between the parties in dispute.
2. If a dispute between an investor of one Contracting Party and other Contracting
a party will not be settled as follows at the time of six months, the investor is entitled to
submit the dispute either:
and the International Centre for) settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, D.
(C) 18. March 1965, in the event that the Contracting Parties are parties to the
Of the Convention; or
(b)) the arbitrator or to the International Court of arbitration set up by ad hoc,
nominated in accordance with the conciliation rules of the United Nations Commission
Nations for international trade law (UNCITRAL). The parties to the dispute
may in writing agree modifications to these rules. The arbitration award will be
final and binding to both parties in a dispute.
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement will, if possible, resolved through consultations or
2. If the dispute cannot be resolved within a period of six months from the
opening the case, will, at the request of either contracting party be submitted
arbitration in accordance with the provisions of this article.
3. the arbitral tribunal shall be established for each individual case
in the following way. Within two months of receipt of the request for
arbitration, each Contracting Party shall designate one member of the arbitration
the Court. These two members then select a citizen of a third State, which will be
agreement of both parties appointed President of the Court (hereinafter referred to as
"the Chairman"). The Chairman shall be appointed within three months from the date of appointment
the other two members.
4. If, in one of the periods referred to in paragraph 3 of this article has not been
performed necessary appointment may be requested the President of the International
the Court of Justice to make the necessary appointment. If the President is a citizen of the
some of the Contracting Parties, or for any other reason unable to perform the operation,
the Vice-President will be called to carry out necessary appointment. If you also
Deputy Chairman of a citizen of either Contracting Party or is unable to do this
the Act will be to perform the necessary appointment asked the oldest Member of the
The International Court of Justice who is not a citizen of any of the Contracting Parties.
5. the arbitral tribunal adopts its decisions by majority vote. Such
the decision is binding. Each Contracting Party shall pay only the cost of your
arbitrator and its participation in the arbitration proceedings; the costs of the Chairman and other
the cost will be borne by the parties equally. The Court of arbitration
shall determine its own rules rules.
The use of other provisions and specific commitments
1. in the event that there is some question dealt with at the same time this agreement and
another international agreement, the two Contracting Parties are parties, nothing
in this agreement does not prevent to any party or any of its
the investor who owns the investments on the territory of the other Contracting Party,
take advantage of any provisions that are more favourable for them.
2. If the treatment granted by either party to investors
the other Contracting Party in accordance with its legal regulations or other
special contractual provisions is more favourable than that
provided for in this agreement, will be used this more favourable treatment.
The applicability of this agreement
The provisions of this Agreement shall be applicable to future investments made
an investor of one Contracting Party in the territory of the other Contracting Party and also on the
investments that exist as of the date of entry into force of this agreement.
Entry into force, duration and termination
1. each Contracting Party shall notify the other party that meet the
national laws relating to the entry into force of this agreement. This
the agreement shall enter into force on the date of the second notification.
2. This agreement shall remain in force for a period of ten years and its validity
will continue until six months before the expiry of the initial period or
any following period one contracting party notifies the
the other Contracting Party of its intention to terminate the agreement.
3. For investments made prior to the termination of this Agreement shall remain
the provisions of this agreement are effective for a period of ten years from the date of their
the validity of.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Done at Riga, 25. October 1994 in duplicate in the Czech,
Latvian and English languages, all the texts are authentic. In the case of
any differences in interpretation, the English text will be decisive.
For the Government of the United States:
Ing. Ivan Kočárník, CSc. v. r.
Deputy Prime Minister and Minister of finance
For the Government of the Republic of Latvia:
Andris Piebalgs in r.
the Minister of finance