FOR THE GRAND DUCHY OF LUXEMBOURG,
FOR THE KINGDOM OF THE NETHERLANDS,
FOR THE REPUBLIC OF AUSTRIA,
FOR THE PORTUGUESE REPUBLIC,
FOR THE REPUBLIC OF FINLAND,
FOR THE KINGDOM OF SWEDEN,
FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
FOR THE EUROPEAN COMMUNITIES
FOR GEORGIA
Attachments
Annex IV. COMMUNITY RESERVATIONS IN ACCORDANCE WITH ARTICLE 23(2)
Mining
In some Member States, a concession may be required for mining and mineral rights for nonCommunity controlled companies.
Fishing
Access to and use of the biological resources and fishing grounds situated in the maritime waters coming under the sovereignty or within the jurisdiction of Member States of the Community is restricted to fishing vessels flying the flag of a Community Member State and registered in Community territory unless otherwise provided for.
Real estate purchase
Access to and use of the biological resources and fishing grounds situated in the maritime waters coming under the sovereignty or within the jurisdiction of Member States of the Community is restricted to fishing vessels flying the flag of a Community Member State and registered in Community territory unless otherwise provided for.
Real estate purchase
In some Member States, the purchase of real estate by non-Community companies is subject to restrictions.
Audiovisual services including radio
National treatment concerning production and distribution, including broadcasting and other forms of transmission to the public, may be reserved to audiovisual works meeting certain origin criteria.
Telecommunications services including mobile and satellite services
Reserved services
In some Member States market access concerning complementary services and infrastructure is restricted.
Professional services
Services reserved to natural persons who are nationals of Member States. Under certain conditions those persons may create companies.
Agriculture
In some Member States national treatment is not applicable to non-Community controlled companies which wish to undertake an agricultural enterprise. The acquisition of vineyards by non-Community controlled companies is subject to notification, or, as necessary, authorization.
News agency services
In some Member States limitations of foreign participation in publishing companies and broadcasting companies.
Annex V. RESERVATIONS OF GEORGIA IN ACCORDANCE WITH ARTICLE 23(4)
1. Current Georgian investment legislation requires investments by foreign companies and investments by Georgian companies in which the state does not hold a controlling interest (1) to be licensed by the competent Georgian authorities. The conditions for the issue of such licences shall not result in discrimination between private Georgian and foreign companies, as set out in Georgian law.
Such licensing may not be used in order to nullify the benefits accorded to Community companies pursuant to Article 23(4) of this Agreement, nor to circumvent any other provisions of this Agreement. In particular it may not be used to impede the establishment of Community Companies in any area of economic activity, except as provided for below. No license may be revoked without due justification and any such revocation may be subject to appeal and, if necessary, dispute settlement.
At the latest by 31 December 1998, Georgia shall bring its legislation on licensing into conformity with standard international practice and in particular with Community legislation. The Community shall provide technical assistance in this area. During this transitional period, Georgia shall not take any measures or actions which render the conditions for establishment and operations of Community companies more restrictive than the situation on the day preceding the date of initialling of this Agreement.
2. Foreign investment is prohibited in the following areas:
- Defence and security of Georgia;
- Preparation and sale of narcotics and psychotropic substances;
- Cultivation and sale of plants containing narcotic or poisonous substances.
3. A foreign company requires special permission from the competent authorities in Georgia if it wishes to carry out activities within 20 km of Georgia's borders or in other zones designated as vital to national security or for the protection of Georgia's environment.
4. In the following areas of economic activity, Georgian legislation requires the State to hold at least 51% of the shares of enterprises with foreign participation. This percentage may be reduced if the Parliament of Georgia so determines:
- Operation of gas and oil pipelines, communication and power transmission lines, thermal lines of national importance and the buildings and other facilities essential for their operation;
- Operation of motor highways and railways, airports and maritime ports of national importance in Georgia;
- Issue of securities, bank notes, coins and stamps;
Joint declaration concerning the notion of "control" in Article 25(b) and Article 36
1. The Parties confirm their mutual understanding that the question of control shall depend on the factual circumstances of the particular case.
2. A company shall, for example, be considered as being "controlled" by another company, and thus a subsidiary of such other company if:
- The other company holds directly or indirectly a majority of the voting rights, or
- The other company has the right to appoint or dismiss a majority of the administrative organ, of the management organ or of the supervisory organ and is at the same time a shareholder or member of the subsidiary.
3. Both Parties consider the criteria in paragraph 2 to be non-exhaustive.