Article 22. Health, Safety and Environmental Measures and Labour Standards
Each Contracting Party recognises that it is inappropriate to encourage investment by investors of the other Contracting Party and of a non-Contracting Party by relaxing its health, safety or environmental measures, or by lowering its labour standards. To this effect each Contracting Party should not waive or otherwise derogate from such measures and standards as an encouragement for the establishment, acquisition or expansion of investments in its Area by investors of the other Contracting Party and of a non-Contracting Party.
Article 23. Denial of Benefits
1. A Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is a juridical person of the other Contracting Party and to its investments if the juridical person is owned or controlled by an investor of a non-Contracting Party and the denying Contracting Party:
(a) does not maintain diplomatic relations with the non-Contracting Party; or
(b) adopts or maintains measures with respect to the non-Contracting Party that prohibit transactions with the juridical person or that would be violated or circumvented if the benefits of this Agreement were accorded to the juridical person or to its investments.
2. Subject to prior notification and consultation, a Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is a juridical person of the other Contracting Party and to its investments if the juridical person is owned or controlled by an investor of a non-Contracting Party and the juridical person has no substantial business activities in the Area of the other Contracting Party.
Note: For the purposes of this Article, a juridical person
Is:
(a) "owned" by an investor if more than fifty (50) percent of the equity interest in it is owned by the investor; and
(b) "controlled" by an investor if the investor has the power to name a majority of its directors or otherwise to legally direct its actions.
Article 24. Review
Upon the request of either Contracting Party, the Contracting Parties shall undertake a review of this Agreement, with a view to further promoting progressive liberalisation of investment.
Article 25. Headings
The headings of the Articles of this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement.
Article 26. Final Provisions
1. This Agreement shall enter into force on the thirtieth day after the date of exchange of diplomatic notes between the Governments of the Contracting Parties informing each other that their respective legal procedures necessary for the entry into force of this Agreement have been completed.
2. This Agreement shall remain in force for a period of ten (10) years after its entry into force and shall continue in force unless terminated as provided for in paragraph 3.
3. A Contracting Party may, by giving one year's advance notice in writing to the other Contracting Party, terminate this Agreement at the end of the initial ten (10) year period or at any time thereafter.
4. Notwithstanding paragraph 2, in respect of investments acquired prior to the date of termination of this Agreement, the provisions of this Agreement shall continue to be effective for a period of ten (10) years from the date of termination of this Agreement.
5. This Agreement shall also apply to all investments of investors of either Contracting Party acquired in the Area of the other Contracting Party in accordance with the applicable laws and regulations of that other Contracting Party prior to the entry into force of this Agreement.
6. This Agreement shall not apply to claims arising out of events which occurred, or to claims which had been settled, prior to its entry into force.
7. Either Contracting Party may request consultations with the other Contracting Party for the purpose of amending this Agreement, at any time or as a result of the review under Article 24. Such amendment shall be approved by the Contracting Parties in accordance with their respective legal procedures and shall enter into force on such date as the Contracting Parties may agree.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.
DONE in two originals at Baghdad, on this seventh day of June, 2012, in the Japanese, Arabic and English languages, all texts being equally authentic. In case of any divergence in interpretation, the English text shall prevail.
For Japan:
For the Republic of Iraq: