Law No. 115 Of 28 November 1994

Original Language Title:  LEGE nr. 115 din 28 noiembrie 1994

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LAW No. 115 of 28 November 1994 concerning ratification of the agreement between the Government of Romania and the Government of the Republic of Paraguay for mutual promotion and protection of investments and the Protocol annex, signed in Asuncion on 21 May 1994 PARLIAMENT ISSUING published in MONITORUL OFICIAL NR. 337 of 6 December 1994, the Romanian Parliament adopts this law.


The sole article shall be ratified the agreement between the Government of Romania and the Government of the Republic of Paraguay for mutual promotion and protection of investments and the Protocol annex, signed in Asuncion on 21 May 1994.
This law was adopted by the Chamber of deputies at its meeting on 24 October 1994, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
PRESIDENT of the CHAMBER of DEPUTIES ADRIAN NASTASE this law was adopted by the Senate at its meeting on 16 November 1994, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. SENATE CHAIRMAN ION SADANI agreement between the Governments of Romania and the Republic of Paraguay for mutual promotion and protection of investments the Government of Romania and the Government of the Republic of Paraguay, hereinafter referred to as the Contracting Parties, wishing to intensify economic cooperation for the mutual benefit of both countries, in order to create and maintain favourable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party , recognizing the need to promote and protect foreign investment in order to enhance the economic prosperity of both countries, have agreed as follows: Article 1 For the purposes of this agreement the following definitions shall be applied for further consemnati terms: 1. Investment shall designate any type of assets an investor of a Contracting Party, the investment in the territory of the other Contracting Party, in accordance with the laws and regulations to that end.
The term means in particular, but not exclusively: a) ownership and movable property, and other rights in rem as mortgages, pledges and guarantees;
  

b) stocks, shares or other participations in companies or joint ventures;
  

c) claims and rights arising out of any kind of benefits with economic and financial value;
  

d) intellectual property rights such as copyrights, patents, models and industrial designs, trade marks and trade names, industrial and commercial secrets, technical processes, know-how, and other similar rights which are recognized by the laws of the Contracting Parties;
  

(e) concessions conferred by law) or by agreement of the Contracting Parties for the prospection, exploration and exploitation of natural resources. Any change in the form in which assets are invested or reinvested shall not affect their character as investments.
  

2. The investor, (i) with regard to Romania: a) any person, who, under the laws and regulations, is regarded as its citizen;
  

b) by any legal person constituted under the laws and regulations, having its registered office and economic activity in Romania;
  

(them) with respect to the Republic of Paraguay: a) any person, who, in accordance with the existing legislation, a national of the Republic of Paraguay is;
  

b) by any legal person constituted under the laws and regulations of the Republic of Paraguay, which is headquartered there.
  

3. Revenue shall appoint an investment product amounts and include in particular, but not limited to, loss of profits, dividends, interest, capital surcharges, fees, royalties and other income.
4. Territory means: (i) with regard to Romania, the territory or territorial sea, including national as well as continental platform and the exclusive economic zone over which they exercise in accordance with international law, sovereignty, sovereign rights or jurisdiction;
(them) with respect to the Republic of Paraguay, refers to the territory over which it may exercise sovereignty or jurisdiction in accordance with international law.


Article 2 promotion and acceptance 1. Promotion: each Contracting Party shall promote in its territory investments of investors as far as possible the other Contracting Party and shall admit such investments in accordance with its laws and regulations.
2. Admission: the contracting party who has admitted an investment on its territory, will grant the necessary permits in connection with this investment, including executing contracts and technical assistance, commercial or administrative. Each Contracting Party shall, when necessary, the necessary permits for the activities of consultancy or other qualified persons of foreign nationality.


Article 3 protection, treatment and economic integration zone 1. Protection: each Contracting Party shall protect its territory investments made in accordance with its laws and regulations, by investors of the other Contracting Party and shall not obstruct through inappropriate or discriminatory measures the Administration, maintenance, service, the right to dispose of them, development, sale and, where appropriate, liquidation of such investments. In particular, each Contracting Party shall grant approvals referred to in article 1. 2 (2) of this agreement.
2. the most-favoured-nation Treatment: each Contracting Party shall guarantee the territory or fair and just treatment to investments of investors of the other Contracting Party. This treatment will not be less favourable than that accorded by each Contracting Party in the territory of or investments made by its own investors or that accorded by each Contracting Party in the territory of or investments made by investors of the most favoured nation you, always when this latter treatment will be more favorable.
3. economic integration zone: most favoured nation Treatment shall not apply to privilege a contracting party provide investors a third State as a consequence of participation or association in a free trade area, a Customs Union, or a market.
4. Others: treatment established by this article does not refer to the advantages of one of the Contracting Parties allow investors from third countries as a result of an agreement on avoidance of double taxation or other agreements relating to taxation.


Article 4 freedom of transfer 1. Each Contracting Party, in whose territory the investors other Contracting Party having made the investment, will guarantee them free transfer of payments relating to those investments and in particular of: (a)) revenue;
  

b) reimbursement of loans;
  

c) amounts intended to cover expenses relating to the administration of investment;
  

d) additional capital contribution required for the maintenance or development of an investment;
  

It's made from the sale amounts) or partial or total liquidation of an investment;
  

f) indemnity. 5 and 6.
  

2. The transfers mentioned above shall be carried out without undue delay, in freely convertible currency at the exchange rate applicable on the date of transfer, in accordance with the regulations in force in the foreign exchange regime of the Contracting Party in whose territory the investment has been made.


Article 5 Expropriation and compensation 1. None of the parties will not adopt direct or indirect measures of expropriation, nationalization or any other measure of the same nature or having a similar effect against investments of investors of the other Contracting Party, except for the public interest, in accordance with the provisions of the respective national constitutions, and provided that such measures are not discriminatory and prompt payment of compensation determined effective, appropriate and in accordance with legal provisions.
The notion of public interest will be construed in accordance with the terms set out in the Protocol to this agreement.
2. Compensation will have to correspond to the actual value of the investment market on expropriata or naţionalizata it had immediately before the expropriation, nationalization or other equivalent measures to become public. Compensation shall be paid without delay in freely convertible currency. Compensation, which will include interest from the date of expropriation until its actual payment will have to be made and freely transferable in convertible currency.


Article 6 compensation for losses Investors of one Contracting Party who suffer losses of its capital investment in the territory of the other Contracting Party as a result of a war or other armed conflict, revolution, State of national necessity, revolt, uprising or insurectiei the territory of the other Contracting Party, will not be treated by this less favorable than its own investors or to investors of any third State in respect of refunds, allowances or other payments, lichidarile. The corresponding payments shall be transferable in accordance with the provisions of art. 4. Article 7 Subrogation if a Contracting Party or one of its authorized agencies granted a warranty to cover non-commercial risks with respect to an investment made by one of its investors in the territory of the other Contracting Party, the latter Contracting Party shall recognise last subrogation of the first Contracting Party or its authorized agencies as having the same rights as those of the investor recognised by the law of the party where the investment was made, always when the first Contracting Party has made a payment pursuant to this warranty.


Article 8


Disputes between a Contracting Party and an investor of the other Contracting Party 1. To resolve disputes relating to investments between a Contracting Party and an investor of the other Contracting Party, interested parties will conduct consultations to resolve the case as amicable as possible.
2. If the consultations do not permit settlement of the dispute within a period of six months from the date of application for settlement of the dispute, the investor may submit the case to the jurisdiction either of the Contracting Party in whose territory the investment has been made, either by the international arbitration. In the latter case the investor has the following options: a) the International Center for Investment Disputes relating to Regulation (I.C.S.I.D.), created by the Convention for the settlement of disputes relating to investments between States and individuals of other States, opened for signature at Washington on 18 March 1965; or b) ad hoc tribunal, constituted according to the rules of arbitration of the United Nations Commission on International Trade Law (UNCITRAL).
  

3. In the event of recourse to the jurisdiction of the national team, the investor may not have recourse to international arbitration mentioned in paragraph 2 of this article, except when after a period of 18 months from the date you request for settlement have not obtained a final and enforceable sentence and the two parties, by mutual agreement, waive continuation in this Court to submit the dispute to international arbitration.
4. A Contracting Party which is a party in a dispute, it will not be able to invoke in defence during the proceedings, his immunity or that the investor has received an indemnity under a contract of insurance covering all or part of the damage and losses incurred.
5. the arbitral Tribunal may be decided on the basis of this agreement and other relevant agreements between the Contracting Parties; based on the terms of another agreement specific to that could be entered into with regard to investments; on the basis of the law of the contracting party party to the dispute, including its rules regarding conflicts of law; on the basis of those principles and rules of international law applicable.
6. the decisions of the Tribunal are final and binding for the parties to the dispute.


Article 9 settlement of disputes between the Contracting Parties 1. Disputes between Contracting Parties relating to the interpretation or application of the provisions of this agreement will be solved diplomatically.
2. If the parties do not reach an agreement within six months of the initiation of the dispute, it shall be submitted, at the request of any of them, a Court of arbitration consisting of three members. Each Contracting Party shall appoint one arbitrator, and both arbitrators thus appointed shall appoint the President of the Tribunal, which will have to be a national of a third State.
3. If one of the parties has not appointed the arbitrator and has not given invitation response the other Contracting Party to make this designation within 2 months, the arbitrator will be appointed, at the request of that Contracting Party, of the President of the International Court of Justice.
4. If the two arbitrators fail to reach an agreement in relation to the election of the President within two months of their appointment, the President will be appointed, at the request of any Contracting Party, by the President of the International Court of Justice.
5. If, in the cases referred to in paragraphs 3 and 4 of this article, the President of the International Court of Justice is prevented from realizing this function or is the national of any of the parties, the appointments shall be made by the Vice President and, if he is prevented or is any one of the Contracting Parties, the appointments shall be made by the judge of the Court with the greatest seniority that may not be a national of any of the Contracting Parties.
6. the arbitral Tribunal shall adopt its decision by majority vote. Each Contracting Party shall bear the costs for the referee or also those of its representation in arbitration proceedings. The expenses of the President, as well as other expenses shall be borne, in principle, in equal parts by the Contracting Parties.
7. The Court shall decide the procedure himself.
8. the decisions of the Tribunal are final and binding on the parties.


Article 10 Supplementary Provisions 1. Each Contracting Party shall observe their obligations with regard to investments of investors of the other Contracting Party.
2. If the legislation of either Contracting Party or obligations under international law, existing or to be determined in the future between the Contracting Parties in addition to this agreement, contain a regulation General or specific, entitling investments made by investors of the other Contracting Party to a treatment more favourable than that provided for in this agreement, this Regulation shall prevail over this agreement.
3. Any phrase that is not defined in this Agreement shall have the meaning with which it is used in the legislation in force in each Contracting State.


Article 11 scope This agreement shall apply to investments in the territory of one of the Contracting Parties, which shall be made in accordance with its legislation, including the procedures for the admission of investors of the other party, made before or after the entry into force of this agreement. However this agreement will not be applied to disputes or disputes occurring before its entry into force.


Article 12 entry into force, duration and termination of the agreement 1. This agreement shall enter into force 30 days after the date on which the Contracting Parties have notified each other and, in writing, that they have fulfilled the constitutional procedures necessary for approval in their respective countries and will be valid for a period of 10 years.
2. If none of the Contracting Parties shall not terminate in writing with at least 12 months before the date of its expiration, this Agreement shall be extended tacitly, for periods of 10 years each Contracting Party reserves the right to terminate this agreement by notice, with at least 12 months before the date of expiry of the existing period of validity.
3. In connection with investments made prior to the date of termination of this agreement, art. 1-11 of the agreement shall continue to be valid for a period of 10 years from the date of expiry.
In witness whereof, the undersigned, duly authorized for this purpose by their respective Governments, have signed this agreement.
Done at Asuncion, on 21 May 1994, in Romanian and Spanish languages, both texts being equally authentic.
For the Government of Romania, NICOLAE VĂCĂROIU, Prime Minister of the Government of Paraguay, LUIS MARIA RAMIREZ BOETTNER, Minister of external relations on the occasion of the signing of the PROTOCOL agreement on mutual promotion and protection of investments between the Government of Romania and the Government of the Republic of Paraguay, the signatories have decided, in addition, the following provisions which form an integral part of the agreement: in order to align the provisions of art. 109 of the national Constitution of the Republic of Paraguay, is required for clarity to those set out in article 1. 5 of this agreement, namely that the very basics of public utility and social interest are included in the expression of the public interest.
Signed at Asuncion, on 21 May 1994, in two copies, each in the Romanian and Spanish languages, both texts being equally authentic.
For the Government of Romania, NICOLAE VĂCĂROIU, Prime Minister of the Government of Paraguay, LUIS MARIA RAMIREZ BOETTNER, Minister of foreign relations — — — — — — — — — — — — — — — — — — — — — — — — — —