96/1995 Sb.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs communicates the 12 October. November 1993
in the Prague agreement signed between the Government of the United Kingdom and the Government of
The Portuguese 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.
Agreement entered into force pursuant to article 13(2). 1 day 3.
August 1994.
The Czech version 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.
The AGREEMENT
between the Government of the United Kingdom and the Government of the Portuguese Republic on the promotion and
mutual protection of investments
The Government of the United Kingdom and the Government of the Portuguese Republic (hereinafter referred to as "the Contracting
the parties '),
Desiring to develop economic cooperation for mutual 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 upon the following:
Article 1
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 copyright,
industrial property rights, such as trademarks, patents,
industrial designs, technical processes, know-how, trade
secrets, trade names and goodwill associated with the investment.
(e)) the rights conferred by law or contract, licence or
the permit issued under the Act, including concessions for exploration, extraction and
the 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
one of the parties, which invests on the territory of the other Contracting
Parties:
a) "natural person" means any natural person who is a national
the citizenship of one of the Contracting Parties in accordance with its legal regulations;
b) "legal person" means any company with a legal
personality, which has its head office in the territory of one of the Contracting Parties and
is established or registered in accordance with the law of that Contracting
party.
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 "liquidation of investments ' means that the investments were completed in
accordance with the legal provisions in force in the territory of that Contracting Party in
which the investment in question was.
Article 2
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
such investments will allow, 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.
Article 3
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 disposal
with their investments, treatment which is the proper and equitable and not less
favorable, than to its own investors or to investors
any non-Member 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
taxation.
Article 4
Compensation for damage
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. The resulting payments shall be without
late payment freely transferable in freely convertible currency.
Article 5
The expropriation
1. investments of investors of one or the other party will not be
nationalized, expropriated or subjected to measures having similar effect
as nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the
the other party, except in the public interest. The expropriation will be
carried out according to the law, on a non-discriminatory basis, and will be accompanied by a
measures to pay immediate, adequate and effective compensation. Such
the refund will 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 rate from normal business
the date of the expropriation, will be carried out without delay, will be immediately
realizable and freely transferable in freely convertible currency.
2. 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.
3. The provisions of this article shall also apply to cases where the Contracting
party expropriates the assets of a company which has its head office in the territory
one of the Contracting Parties and is set up or registered in accordance with
the legal order of the Contracting Parties and in which investors of the other Contracting
the parties own shares.
Article 6
Conversions
1. the Contracting Parties shall ensure that the transfer payments related to investments or
revenue. Transfers will be made in freely convertible currency without restriction and
unnecessary delay. Such transfers shall include, but not
exclusively:
and) capital and additional amounts to maintain or increase the investment;
(b) income from investments) as defined in article 1 (1). 3;
(c) the amount of the repayment of loans) recognised by the two parties for the
investment;
d) funds obtained from sale or liquidation of the investment;
e) compensation (indemnity) and payments in accordance with articles 4 and 5 of this agreement;
f) any payment made pursuant to article 7;
g) earnings of individuals for work and services performed in connection with the
investments.
2. For the purposes of this agreement, the conversion rates to be used as the official
courses for common transactions in force on the date of the transfer, unless it is agreed
otherwise.
Article 7
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
page:
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 rule of conduct in the territory of that Contracting Party, 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.
Article 8
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
the parties
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 to one of the following jurisdictions:
and to the competent court that) the Contracting Party in whose territory the investment
carried out;
(b) the International Centre) 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;
(c)) 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.
Article 9
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
Agreement may be, if possible, resolved through consultations or
negotiations through diplomatic channels.
2. If the dispute cannot be resolved within six months, will be on the
the request of either contracting party be submitted to an arbitral tribunal in accordance with the
the provisions of this article.
3. the arbitral tribunal shall be established for each individual case
in the following way. Each Contracting Party shall designate one arbitrator in
within two months of receipt of the request for arbitration. These two
the arbitrator then selects a citizen of a third State, that will be with the consent of both
of the parties appointed President of the Court (hereinafter referred to as "the Chairman").
The Chairman shall be appointed within three months from the date of the appointment of the two arbitrators.
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 appointment. If the President of the citizen of any
the Contracting Parties, or for any other reason unable to exercise this mandate, the
on the appointment of the Vice-President asked. If it is also Vice-Chair of the citizen
some of the parties or is unable to perform this credential will be
perform the necessary appointment asked the oldest Member of the international
of the Court who is not a citizen of any of the Contracting Parties.
5. the Arbitration Tribunal shall adopt its decisions by a 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.
Article 10
The use of other provisions and specific commitments
If the provisions of law of either Contracting Party or obligations under
international law existing at present or established later
between the Contracting Parties, in additions to the present Agreement, contain
the rules of either General or specific, entitling investments made by
investors of the other Contracting Party to a treatment more favourable than that,
which is regulated by the present Agreement, then such more favourable rules
will take precedence before the current agreement.
Article 11
Consultation
Representatives of the Contracting Parties shall, whenever necessary, make
consultations on any matter affecting the operation of this agreement.
These consultations will be carried out at the request of one of the Contracting Parties in
the place and time agreed on through diplomatic channels.
Article 12
The applicability of this agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one Contracting Party in the territory of the other Contracting Party and also on the
investments made in accordance with its laws and regulations, and
existing to the effective date of this agreement. This agreement, however,
not apply to disputes that arose before its entry into force.
Article 13
Entry into force, duration and termination
1. each Contracting Party shall notify the other party in fulfilment of the constitutional
the requirements for the entry into force of this agreement. This agreement shall enter
force on the date of the second notification.
2. This agreement shall remain in force for a period of ten years and its validity
It will continue until one year before the expiry of the initial period or
any subsequent five-year period of one Contracting Party in writing
notifies 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 Prague on 12. November 1993, in duplicate, in the language of the
the Czech, Portuguese and English languages, all texts being equally
force. In the case of any deviation in interpretation is crucial
English text.
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 Portuguese Republic:
Fernando Faria de Oliveira in the r.
Minister of Commerce and tourism
DEPUTY PRIME MINISTER AND MINISTER OF FINANCE OF THE CZECH REPUBLIC
Dr. Ivan Kočárník
Prague, 12. November 1993
Your Excellency,
on the occasion of the signing of the agreement between the Government of the Czech Republic and the Government
The Portuguese Republic on the promotion and mutual protection of investments, I would like
confirmed the same opinion of both parties in the matter of the interpretation of article
2 of the above-mentioned agreement.
Both parties mutually affirm that article 2 of the agreement shall be
also applied to cases where investors of one Contracting Party is already
operating on the territory of the other party and wish to extend your investment
or make investments in other areas. These investments, as well as
their extension, will be considered as new and will be provided to them
treatment in accordance with article 2 of this agreement.
Sir, I would appreciate if you could confirm that your opinion is a
the same.
Sincerely Your
Ivan Kočárník, in r.
His Excellency
Mr. Fernando Faria de Oliveira
Minister of trade and tourism
The Portuguese Republic
Lisbon
TRADE AND TOURISM MINISTER OF THE PORTUGUESE REPUBLIC
FERNANDO FARIA DE OLIVEIRA
Lisbon, 12. November 1993
Your Excellency,
on the occasion of the signature of the agreement between the Government of the Portuguese Republic and the
the Government of the Czech Republic on the promotion and mutual protection of investments, I would like
confirmed the same opinion of both parties in the matter of the interpretation of article
2 of the above-mentioned agreement.
Both parties mutually affirm that article 2 of the agreement shall be
also applied to cases where investors of one Contracting Party is already
operating on the territory of the other party and wish to extend your investment
or make investments in other areas. These investments, as well as
their extension, will be considered as new and will be provided to them
treatment in accordance with article 2 of this agreement.
Sir, I would appreciate if you could confirm that your opinion is a
the same.
Sincerely Your
Fernando Faria de Oliveira in the r.
His Excellency
Mr. Ivan Kočárník
the Deputy Prime Minister
and Minister of finance
The United States
Prague
