Turkmenistan - Uzbekistan BIT (1996) - Electronic Database of Investment Treaties (EDIT)

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Turkmenistan - Uzbekistan BIT (1996)

Title

AGREEMENT BETWEEN THE REPUBLIC OF TURKEY

Preamble

AND

THE REPUBLIC OF UZBEKISTAN

CONCERNING THE RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENTS

The Reoublic of Turkey and The Reoublic of uzbekisCan. hereinafter called the Parties.

Desiring to Dromote greater economic cooDeration between them. Darticularly with resoect to investment bv investors of one Party in the territory of the other Party.

Recognizing that agreement UDon the treatment to be accorded such investment will stimulate the flow of capital and technology and the economic developments of the Parties.

Agreeing that fair and eauitable treatment of investment is desirable in order to maintain a stable framework for investment and maximum effective utilization of economic resources, and

Haying resolved to conclude an agreement concerning the encouragement and reciprocal protection of investmens.

Hereby agree as follows:

Body

Article I. Definitions

For the purpose of this Agreement:

1. The term "investor" means:

Fa) natural persons deriving their status as nationals of either Party according to its aoplicable law.

Text provided by the Embassy of the Republic of Turkey, Washington, D.

(b) coroorations. firms or business associations incorporated or constituted uncer the law in force of either of the Parties and having their headauarters in the territory of that Partv.

2. The term "investrent". in conformity with the hostinq Partys Laws and Populations. shall include every kind of asset in Darticular. but not exclusively: '.

Fi) shares, stocks or any other form of oarticioation in comoanies.

Fill returns reinvested, claims to money or any other rights to legitimate performance having financial value related to an investment.

Fiii) movable and immovable oroDerty. as well as any other rights in rem such as mortgages, liens. Diedges and any other similar rights..

(iv) copyrights, industrial and intellectual property rights such as patents, licenses, industrial designs, technical processes, as well as.

Trademarks, goodwj.ll. know-how and other similar rights.

(v) business concessions conferred by law or by

Contract, including concessions to search for, cultivate extract or exploit natural resources on the territory of each Party as defined hereafter.

3. The term "returns" means the amounts yielded by an investment and includes in particular, though not exclusively. profit; interest, and dividends.

4. The term "territory includes the land boundaries. maritime aread and the continental shelf delimited by mutual agreement between the parties concerned over which the Party hostinq the investment has sovereign rights or jurisdiction in accordance with international law.

Article II. Promotion and Protection of Investments

1. Each Party shall permit in its territory investments. and activities associated therewith, on a basis no lass favourable than that accorded in similar situations to investments of investors of any third country, within the framework of its laws and regulations.

2. Each Party shall accord to these investments. once established, treatment no less favourable than that accorded in similar situations to investments of its investors or to investmenst of investors of any thir country, whichever is the most favourable.

3. Subject to the laws and regulations of the Darties relating to the entry, sojourn and emoloyment of aliens;

Fa) nationals of either Party shall be Dermitted to enter and remain in the territory of the other Party far DurDoses of establishing, developing, administering or advising on the ODeration of an investment to which they, or an investor of the first Party that employs them, have committed or are in the Drocess of committing a substantial amount of caoital or other resources.

Fb") comDanies which are legally constituted under the

AoDlicable laws and regulations of one Party, and which are investments of investors of other Party, shall be permitted to engage managerial and technical personnel of their choice, regardless of nationality.

4. The provisions of this Ar.ticle shall have no effect in relation to following agreements entered into by either of the Parties.

Fa) relating to any existing or future customs unions.

Regional economic organization or similar international agreements,

' Cb) relating wholly or mainly to taxation.

Article III. Expropriation and Compensation

1. Investmens shall not be expropriated, nationalized or subject directly or indirectly, to measures of similar effect except for a public purpose, in a non-discriminatory manner, upon payment of prompt. adeauate and effective compensation. and in accordance with due process of law and the general principles of treatment provided for in Article II of this Agreement.

2. Compensation shall be eauivalent to the real value of the expropriated investment before the expropriator/ action was taken or became known Compensation shall be paid without delay and be freely transferable as described in oara. 2 Article 4.

3. Investors of either Partv whose investmens suffer losses In the territory of the other Party owing to war, insurrection. civil disturbance or other similar events shall be accorded by such other Party treatment not less favourable than that accorded to its own investors or the investors of and third country, whichever is the most favourable treatment, as regards any measures it adopts in relation to such losses.

Article IV. Repatriation and Transfer

1. Each Party shall permit in good faith all transfers related to an investment to be made freely and without unreasonable delay into and out of its territory, such transfers include:

(a) returns. {

(b) Droceeds from the sale or liauidation of all or any Dart of an investment.

Ce) compensation pursuant to Article III.

Fd) reimbursements and interest Dayments deriving from loans in connection with investmens.

Fe) salaries, wages and other remunerations received by.the nationals of one Party who have obtained in the territory of the other Party the corresponding work permits relative to an investment.

(f) payments arising from an investment dispute.

. tif.. -

2. Transfer shall be made in the convertible currency in which the investment has been made or in any convertible currency at the rate of exchange in force at the date of transfer. unless otherwise agreed by the investor and the hosting Party.

Article V. Subrogation

1. If the investment of an investor of one Party is insured against non-commercial risks under a system.established by law. any subrogation of the insurer which stems from the terms of the insurance agreement shall be recognized by the other Party.

2. The insurer shall not be entitled to exercise any rights other than the rights which the investor would have been entitled to exercise.

3. Disputes between a Party and an insurer shall be settled in accordance with the Drovisions of article VII of this agreement.

Article VI. Derogation

This agreement shall not derogate from:

Fa) laws and regulations, administrative practices or Drocedurss or administrative or adjudicatory decisions of either Party,

Fb) international legal obligations, or

Fc) obligations assumed by either Party, including those contained in an investment agreement or an investment authorization,

That entitle investments or associated activities to treatment more favourable than that accorded by this Agreement in like situations.

Article VII. Settlement of Disputes Bet W Een One Party and Investors of the other Party

1. Disoutes between one of the Parties and one investor of the other Party, in connection with his investment, shall be notified in writing, including a detailed information. by the investor to the recipient Party of the investment. As far as possible. the investor and the concerned Party shall endeavour to settle these disoutes by consultations and negotiotions in good faith.

2. If these disputes cannot be settled in this way within six months following the date of the written notification mentioned in paragraph 1. the discute can be submitted, as the investor may choose, to:

}

(a) the International Center for Settlement of Investment

Disoutes (ICSID) set ud by the "Convention on Settlement of Investment Disputes Between States and Nationals of other States", [in case both Parties become signatories of this Convention.]

Fbl an ad hoc court of arbitration laid down under the Arbitration Rules of Procedure of the United Nations Commission for International Trade taw fUNCITRALl, [in case both Darties are members of U.N.]

Provided that, if the investor concerned has brought the dispute before the courts of justice of the Party that is a party to the dispute and a final award has not bean rendered within one year.

3. The arbitration awards shall be final and binding for all parties in dispute. Each Party commits itself to execute the award according to its national law.

Article VIII. Settlement of Disputes between the Parties

1. The Parties shall seek in good faith and a soirit of cooDeraiton a rapid and eauitable solution to any disoute between them concerning the interpretation or application of this Agreement. In this regard, the Parties agree to engage ' in direct and meaningful negotiations to arrive at such solutions. If the Parties cannot reach an agreement within six months after the beginning of disoute between themselves through the foregoing procedure, the disoute may be submitted, uoon the reauest of either Party, to an arbitral tribunal of three members.

2. within two months of receipt of a reouest. each Party shall abboint an arbitrator. The two arbitrators shall select a third arbitrator as Chairman, who is a national of a third State. - In the event either Party fails to aDDoint an arbitrator within the specified time, the other Party may reauest the President of the International Court of Justice to make the appointment.

3. I_f both arbitrators cannot reach an agreement about the choice of the Chairman within two months after their appointment, the Chairman shall be appointed uoon the reauest of either Party by the President of the international Court of Justice.

4. If. in the cases SDecified under paragraphs (2") and [3) of this Article. the President of the International Court of Justice is prevented from carrying out the said function or if he is a national of either Party, the apDointment shall be made bv the Vice-President, and if the Vice-President is prevented from carrying out the said function or if he is a national of either Party, the appointment shall be made by the most senior member of the Court who is not a national of either Party.

5. The tribunal shall have three months from the date of the selection of the Chairman to spree uoon rules of procedure consistent with the other provisions of this agreement. In the absence of such agreement, the tribunal shall reauest the President of the International Court of Justice to designate rules Of procedure, taking into account generally recognized rules of international arbitral procedure.

6. Unless otherwise agreed, all submissions shall be made and all hearings shall be completed within eight months of the date of selection of the third arbitrator, and the tribunal shall render its decision within two months after tahe date of the final submissions or the date of the closing of the hearings, whichever is later. The arbitral tribunal shall reach its decisions. which shall be final and binding, by a majority of votes.

7. Exoenses incurred by the Chairman, the other arbitrators, and other costs of the proceedings shall be paid for eoually by the Parties. The tribunal may, however, at its discretion, decide that a higher Drooortion of the costs be Daid by one of the Parties.

6. A disoute shall not be submitted to an international arbitration court under the provisions of this Article, if the same dispute has been brought before another international arbitration court under the provisions of ArticleVIIand is still before the court. This will not imoair the engagement in direct and meaningful negotiations between both Parties.

Article IX. Entering Into Force

-. *

1. This Agreement shall enter into force on the date on which the exchange of instruments of ratification has been completed. It shall remain in force for a period of ten years and shall continue in force unless terminated in accordance with paragraph 2 of this Article. It shall aDDly to investments existing at the time of entry into force as well as to investments made or acauired thereafter.

2. Either Party may, by giving one years written notice to the other Party* terminate this Agreement at the end of the initial ten year period or at any time thereafter.

3. This Agreement may be amended by written agreement between the Parties. Any amendment shall enter into force when each Party has notified the other that it has comDleted all internal reauirements for entry into force of such amendment.

4. With rasosct to investments made or acauired prior to the date of termination of this Agreement and to which this

Agreement otherwise applies. the provisions of all of the other Article* of this Agreement shall thereafter continue to be effective for a further period of ten years from such date of termination.