Title
AGREEMENT
BETWEEN
THE KINGDOM OF NORWAY
PROMOTION AND PROTECTION OF INVESTMENTS
Preamble
The Kingdom of Norway and the......, hereinafter referred to as the "Parties"; Desiring to develop the economic cooperation between the Parties;
Desiring to encourage, create and maintain stable, equitable, favourable and transparent conditions for investors of one Party and their investments in the territory of the other Party on the basis of equality and mutual benefit;
Desiring to achieve these objectives in a manner consistent with the protection of health, safety, and the environment, and the promotion of internationally recognized labour rights;
Desiring to contribute to a stable framework for investment in order to maximize effective and sustainable utilization of economic resources and improve living standards;
Conscious that the promotion and reciprocal protection of investments in accordance with this Agreement will stimulate the business initiative;
Emphasising the importance of corporate social responsibility;
Recognising that the development of economic and business ties can promote respect for internationally recognised labour rights;
Reaffirming their commitment to democracy, the rule of law, human rights and fundamental freedoms in accordance with their obligations under international law, including the principles set out in the United Nations Charter and the Universal Declaration of Human Rights;
Recognising that the promotion of sustainable investments is critical for the further development of national and global economies as well as for the pursuit of national and global objectives for sustainable development, and understanding that the promotion of such investments requires cooperative efforts of investors, host governments and home governments;
Recognising that the provisions of this agreement and provisions of international agreements relating to the environment shall be interpreted in a mutually supportive manner;
Determined to prevent and combat corruption, including bribery, in international trade and investment;
Recognising the basic principles of transparency, accountability and legitimacy for all participants in foreign investment processes;
Have agreed as follows:
Section SECTION I - SCOPE AND APPLICATION!
Body
Article 1. SCOPE
1. This Agreement applies to measures adopted or maintained by a Party, after the entry into force of this Agreement, relating to investors of the other Party or to investments of investors of the other Party. The Section [Dispute Settlement Provisions] does not apply to disputes arising out of events that have occurred before the entry into force of this Agreement, cf. Article ["Non-Retroactive Application"].
2. This Agreement applies to investments made prior to or after its entry into force.
3. This Agreement shall apply to the land territory, internal waters, and the territorial sea of a Party, and the airspace above the territory in accordance with international law.
4. This Agreement shall not apply to Svalbard, i.e. the land territory of the Archipelago, internal waters and the territorial sea of the Archipelago.
Article 2. DEFINITIONS
1. "Investor" Means:
I. a Natural Person Having the Nationality Of, or Permanent Residence In, a Party Inaccordance with Its Applicable Law; Or
ii. any entity established in accordance with, and recognised as a legal person by the law of a Party, and engaged in substantive business operations in the territory of that Party, such as companies, firms, associations, development finance institutions, foundations or similar entities irrespective of whether their liabilities are limited and whether or not their activities are directed at profit.
2. "Investment" means:
Every kind of asset owned or controlled, directly or indirectly, by an investor of a Party, including, but not limited to:
i. any entity established in accordance with, and recognised as a legal person by the law of a Party, whether or not their activities are directed at profit;
ii. shares, stocks or other forms of equity participation in an enterprise, and rights derived therefrom;
iii. bonds, debentures, loans and other forms of debt, and rights derived therefrom;
iv. rights under contracts, including turnkey, construction, management, production or revenue-sharing;
v. contracts;
vi. claims to money and claims to performance;
vii. intellectual property rights;
viii. rights conferred pursuant to law or contract such as concessions, licenses, authorisations, and permits;
ix. any other tangible and intangible, movable and immovable property, and any related property rights, such as leases, mortgages, liens and pledges
In order to qualify as an investment under this Agreement, an asset must have the characteristics of an investment, such as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk.
Section 2. TREATMENT AND PROTECTION OF INVESTORS AND INVESTMENTS
Article 3. NATIONAL TREATMENT
1. Each Party shall accord to investors of the other Party and to their investments, treatment no less favourable than the treatment it accords in like circumstancesâ to its own investors and their investments, in relation to the establishment, acquisition, expansion, management, conduct, operation and disposal of investments.
2. National treatment shall not apply to the reservations set out in Annex [A].
Article 4. MOST-FAVOURED-NATION TREATMENT
1. Each Party shall accord to investors of the other Party and to their investments, treatment no less favourable than the treatment it accords in like circumstancesâ to investors and their investments of any other State, subject to the country-specific reservations set out in Annex [B], in relation to the establishment, acquisition, expansion, management, conduct, operation and disposal of investments.
2. If a Party accords more favourable treatment to investors of any other State or their investments by virtue of a free trade agreement, customs union [or similar agreement that also provides for substantial liberalisation of investments] or by a labour market integration agreements, it shall not be obliged to accord such treatment to investors of the other Party or their investments. However, upon request from another Party, it shall afford adequate opportunity to negotiate the benefits granted therein.
3. For greater certainty, treatment referred to in paragraph [1] does not encompass dispute resolution mechanisms provided for in this Agreement or other International Agreements.
Article 5. GENERAL TREATMENT AND PROTECTION
Each Party shall accord to investors of the other Party, and their investments treatment in accordance with customary international law, including fair and equitable treatment and full protection and security.
Article 6. EXPROPRIATION
1. A Party shall not expropriate or nationalise an investment of an investor of the other Party except in the public interest and subject to the conditions provided for by law and by the general principles of international law.
2. The preceding provision shall not, however, in any way impair the right of a Party to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.
Article 7. COMPENSATION FOR LOSSES
1. Investors whose investments have suffered losses due to armed conflict or civil strife, shall benefit from treatment in accordance with Article [National treatment] and Article [MEN] as regards restitution, indemnification, compensation or any other settlement it adopts or maintains relating to such losses.
2. [Without prejudice to paragraph 1 of this Article, an investor of a Party who, in any of the situations referred to in that paragraph, suffers a loss in the area of another Party resulting from
i, requisitioning of its investment or part thereof by the latter's forces or authorities, or
ii. destruction of its investment or part thereof by the latter's forces or authorities,
which was not required by the necessity of the situation, shall be accorded restitution or compensation
Article 8. PERFORMANCE REQUIREMENTS
1. No Party May Impose or Enforce Any of the Following Requirements, or Enforce Any commitment or undertaking in connection with the establishment, acquisition, expansion, management, conduct or operation of an investment of an investor of the other Party:
i, [to export a given level or percentage of goods or services;]
ii. [to achieve a given level or percentage of domestic content;]
iii. [to purchase, use or accord a preference to goods produced or services provided in its territory, or to purchase goods or services from persons in its territory;]
iv. [to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment;]
v. [to restrict sales of goods or services in its territory that such investment produces or provides by relating such sales to the volume or value of its exports or foreign exchange earnings;]
vi. [to transfer technology, a production process or other proprietary knowledge to a natural or legal person in its territory, except when the requirement]
(a) is imposed or the commitment or undertaking is enforced by a court, administrative tribunal or competition authority to remedy an alleged violation of competition laws, or
(b) concerns the transfer of intellectual property and is undertaken in a manner not inconsistent with the TRIPS Agreement; ]
vii. [to locate its headquarters for a specific region or the world market in the territory of that Party;]
viii. [to supply one or more of the goods that it produces or the services that it provides to a specific region or the world market exclusively from the territory of that Party;]
ix. [to achieve a given level or value of research and development in its territory; ]
x, [to hire a given level of nationals;]
xi. [to achieve a minimum level of domestic equity participation other than nominal qualifying shares for directors or incorporators of corporations. ]
2. A measure that requires an investment to use a technology to meet generally applicable health, safety or environmental requirements shall not be construed to be inconsistent with paragraph 1.
3. Performance requirements, other than those referred to in paragraph 1, shall only be applied in the public interest and shall be set forth in the national legislation of the Party imposing the requirement and published in the official gazette or otherwise be publicly available according to Article [Transparency] so that investors may become acquainted with them before the investment decision is made. All performance requirements shall be applied against all investors and their investments in a non-discriminatory, transparent and objective manner.
4. A Party may not apply new performance requirements to existing investments, or amend existing performance requirements in a manner restricting the commercial freedom of the investor, except where such requirements are at the same time made applicable to all other investors in that Party.
Article 9. TRANSFER
1. Each Party shall ensure that all payment relating to an investment of an investor of another Party may be freely transferred into and out of its territory without delay. Such transfers shall include, in particular, though not exclusively:
i, the initial capital and additional amounts to maintain or increase an investment;
ii, profits, interest, dividends, capital gains, royalties, fees and returns in kind;
iii. payments made under a contract including a loan agreement;
iv. proceeds from the sale or liquidation of all or any part of an investment;
v. earnings and other remuneration of personnel engaged from abroad in connection with an investment.
2. Each Party shall further ensure that such transfers may be made in a freely convertible currency. Freely convertible currency means a currency that is widely traded in international foreign exchange markets and widely used in international transactions. Transfers shall be made at the market rate of exchange prevailing on the date of transfer.
3. It is understood that paragraphs 1 and 2 are without prejudice to the equitable, non- discriminatory and good faith application of measures:
i, to protect the rights of creditors,
ii. relating to or ensuring compliance with laws and regulations
(a) on the issuing, trading and dealing in securities, futures and derivatives,
(b) concerning reports or records of transfers, or
(c) concerning the payment of contributions or penalties.
(d) concerning financial security or any other equivalent regarding the prevention and remedying of environmental damage
iii. in connection with criminal offences and orders or judgments in administrative and adjudicatory proceedings
Article 10. KEY PERSONNEL
1. Each Party shall, subject to its laws and regulations relating to the entry, stay and work of natural persons, grant natural persons of the other Party, and key personnel who are employed by natural or juridical persons of the other Party, temporary entry and stay in its territory in order to engage in activities connected with an investment, including the provision of advice or key technical services.
2. Each Party shall, subject to its laws and regulations, permit natural or legal/juridical persons of another Party to employ, in connection with an investment, any key personnel of the natural or legal/juridical person's choice provided that such key personnel has been permitted to enter, stay and work in its territory and that the employment concerned conforms to the terms, conditions and time limits of the permission granted to such key personnel.
3. The Parties shall, subject to their laws and regulations, grant temporary entry and stay and provide any necessary confirming documentation to the spouse and minor children of a natural person who has been granted temporary entry, stay and authorisation to work in accordance with paragraphs 1 and 2. The spouse and minor children shall be admitted for the period of the stay of that person.
Article 11. NOT LOWERING STANDARDS
1. The Parties recognize that it is inappropriate to encourage investment by relaxing domestic health, safety or environmental measures or core labour standards. Accordingly, a Party should not waive or otherwise derogate from, or offer to waive or otherwise derogate from, such measures as an encouragement for the establishment, acquisition, expansion or retention of an investment of an investor.
2. If a Party considers that the other Party has offered such an encouragement, it may request consultations under Article [Joint Committee].
Article 12. RIGHT TO REGULATE
Nothing in this Agreement shall be construed to prevent a Party from adopting, maintaining or enforcing any measure otherwise consistent with this Agreement that it considers appropriate to ensure that investment activity is undertaken in a manner sensitive to health, safety or environmental concerns.
Section 3. DISPUTE SETTLEMENT PROVISIONS
Article 13. NON-RETROACTIVE APPLICATION
This Section does not apply to disputes arising out of events that have occurred before the entry into force of this Agreement.
Article 14. GOVERNING LAW
1. A Tribunal established under this Section shall make its award based on the provisions of this Agreement interpreted and applied in accordance with the rules of interpretation of international law.
2. An interpretation by the Joint Committee of a provision of this Agreement shall be binding on a Tribunal established under this Section.
A. DISPUTES BETWEEN A PARTY AND AN INVESTOR OF THE OTHER PARTY
Article 15. DISPUTES BETWEEN a PARTY AND AN INVESTOR OF THE OTHER PARTY
1. This Article applies to legal disputes between a Party and an investor of the other Party arising directly out of an investment of the latter that falls under the jurisdiction of the former. The dispute must be based on a claim that the Party has breached an obligation under this Agreement and that the investor of the other Party has incurred loss or damage by that breach.
2. Any dispute under this Article shall, if possible, be settled amicably. The Party and an investor of the other Party should initially seek to resolve the dispute through consultation.
3. If any such dispute should arise and either
i, agreement cannot be reached between the parties to this dispute within 36 months from its submission to a local court for the purpose of pursuing local remedies, after having exhausted any administrative remedies; or
ii. there are no reasonably available local remedies to provide effective redress of this dispute, or the local remedies provide no reasonable possibility of such redress,
[and,
iii. the investor has provided a clear and unequivocal waiver of any right to pursue the matter before local courts,]
then each Party hereby consents to the submission of such dispute to arbitration under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States opened for signature at Washington on 18 March 1965 (ICSID Convention) in accordance with the provisions of this Article. The consent and the submission of the dispute by an investor under this Article shall be considered to satisfy the requirements of Article 25 of the ICSID Convention [ICSID Additional Facility Rules, with the approval of the Agreement by the Secretary General to ICSID].
4. [An investor may not submit a dispute for resolution according to paragraph [3] if more than ten years have elapsed from the date the investor first acquired knowledge of the events giving rise to the claim.]
5. Each request for arbitration shall include information sufficient to present clearly the issues in dispute so as to allow the Parties and the public to become acquainted with them. All requests for arbitration shall be made publicly available by the Parties and by ICSID.
Article 16. ADDITIONAL PROCEDURAL ISSUES
The Tribunal shall, as appropriate, take into account the principles of res judicata and lis pendens, in accordance with international law, to hinder abuse of rights under this agreement, as well as otherwise exercising sound judicial economy. If all parties to the dispute so agree, the Tribunal may consolidate claims.
Article 17. THE AWARD
1. Any arbitral award rendered pursuant to Article [Disputes between a Party and an Investor of the other Party], shall be final and binding on the Parties to the dispute.
2. Where a Tribunal makes an award against a Party pursuant to Article [Disputes between a Party and an Investor of the other Party], the Tribunal may only award monetary damages, including applicable interest, as well as costs in accordance with the applicable arbitration rules.
3. All awards and substantive decisions of the Tribunal shall be made publicly available.
4. The costs of arbitration shall in principle be borne by the unsuccessful Party. However, the Tribunal may apportion such costs between the Parties if it determines that apportionment is reasonable, taking into account the circumstances of the case.
Article 18. PARTICIPATION IN THE PROCEEDINGS
1. The Party complained against shall, within 30 days after receiving a request for arbitration, notify the other Party in writing and transmit a copy of the request.
.. The Tribunal shall give the other Party the opportunity to:
i, be present at the substantive meetings of the Tribunal with the parties to the dispute preceding, except for portions of such meetings when confidential information designated as such by the Party that submitted it is discussed;
ii. make a written submission prior to the first oral hearing; and
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iii. make an oral presentation to the Tribunal at the first oral hearing;
provided that it has informed the Tribunal no later than [30 days] after the establishment of the Tribunal of its desire to participate in the proceedings.
. The Tribunal shall have the authority to accept and consider written amicus curiae submissions from a person or entity that is not a disputing Party, provided that the Tribunal has determined that they are directly relevant to the factual and legal issues under consideration. The Tribunal shall ensure an opportunity for the parties to the dispute, and to the other Party, to submit comments on the written amicus curiae observations.
. The Tribunal shall reflect submissions from the other Party and from amicus curiae in its report.
Article 19. TRANSPARENCY OF PROCEEDINGS
. All documents submitted to, or issued by, the Tribunal shall immediately be made publicly available by the Tribunal.
. When submitting information to the Tribunal, a Party to the dispute may designate specific information as confidential if the information
i, is not generally known or accessible to the public, and
2. The Tribunal shall give the other Party the opportunity to: