(a) Sector and sub-sector or matter;
(b) Obligation or article in respect of the measure;
(c) Legal source of the measure;
(d) Succinct description of the measure; and
(e) Purpose of the measure.
Article 18.
1. A Contracting Party may adopt or maintain measures not conforming with its obligations under paragraph 1 of Article 2 relating to cross-border capital transactions and Article 14:
(a) In the event of serious balance-of-payments and external financial difficulties or threat thereof; or
(b) In cases where, in exceptional circumstances, movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in particular, monetary and exchange rate policies.
2. Measures referred to in paragraph 1 above:
(a) Shall be consistent with the Articles of Agreement of the International Monetary Fund, as may be amended, so long as the Contracting Party taking the measures is a party to the said Articles;
(b) Shall not exceed those necessary to deal with the circumstances set out in paragraph 1 above;
(c) Shall be temporary and shall be eliminated as soon as conditions permit;
(d) Shall be promptly notified to the other Contracting Party; and
(e) Shall avoid unnecessary damages to the commercial, economic and financial interests of the other Contracting Party.
3. Nothing in this Agreement shall be regarded as altering the rights enjoyed and obligations undertaken by a Contracting Party as a party to the Articles of Agreement of the International Monetary Fund, as may be amended.
Article 19.
1. Notwithstanding any other provisions of this Agreement, a Contracting Party shall not be prevented from taking measures relating to financial services for prudential reasons, including measures for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by an enterprise supplying financial services, or to ensure the integrity and stability of its financial system.
2. In cases where a Contracting Party takes any measure, pursuant to paragraph 1 above, that does not conform with the obligations of the provisions of this Agreement, that Contracting Party shall not use such measure as a means of avoiding its obligations.
Article 20.
1. Nothing in this Agreement shall be construed so as to derogate from the rights and obligations under multilateral agreements in respect of protection of intellectual property rights to which the Contracting Parties are parties.
2. Nothing in this Agreement shall be construed so as to oblige either Contracting Party to extend to investors of the other Contracting Party and their investments treatment accorded to investors of a non-Contracting Party and their investments by virtue of multilateral agreements in respect of protection of intellectual property rights, to which the former Contracting Party is a party.
3. The Contracting Parties shall give due consideration to the adequate and effective protection of intellectual property rights and shall promptly consult with each other for this purpose at the request of either Contracting Party. Depending on the results of the consultation, each Contracting Party shall, in accordance with its laws and regulations, take appropriate measures to remove the factors which are recognized as having adverse effects to the investments.
Article 21.
Nothing in this Agreement shall affect the rights and obligations of either Contracting Party under any convention for the avoidance of double taxation. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency.
Article 22.
1. The Contracting Parties shall establish a Joint Committee (hereinafter referred to as "the Committee") with a view to accomplishing the objectives of this Agreement. The functions of the Committee shall be:
(a) To discuss and review the implementation and operation of this Agreement;
(b) To review the exceptional measures maintained, amended, modified or adopted pursuant to paragraph 1 of Article 6 for the purpose of contributing to the reduction or elimination of such exceptional measures;
(c) To discuss the exceptional measures adopted or maintained pursuant to paragraph 2 of Article 6 for the purpose of encouraging favorable conditions for investors of the Contracting Parties; and
(d) To discuss any other investment-related matters concerning this Agreement.
2. The Committee may, as necessary, make appropriate recommendations by consensus to the Contracting Parties for the more effective functioning or the attainment of the objectives of this Agreement.
3. The Committee shall be composed of representatives of the Contracting Parties. The Committee shall determine its own rules of procedure to carry out its functions.
4. The Committee may establish sub-committees and delegate specific tasks to such sub-committees. The Committee, upon mutual consent of the Contracting Parties, may hold joint meetings with the private sectors.
5. The Committee shall meet upon the request of either Contracting Party.
Article 23.
The Contracting Parties recognize 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 labor 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 in its Area of investments by investors of the other Contracting Party and of a non-Contracting Party.
Article 24.
1. A Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is an enterprise of the other Contracting Party and to its investments if the enterprise 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 enterprise or that would be violated or circumvented if the benefits of this Agreement were accorded to the enterprise 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 an enterprise of the other Contracting Party and to its investments if the enterprise is owned or controlled by an investor of a non-Contracting Party and the enterprise has no substantial business activities in the Area of the other Contracting Party.
Article 25.
1. 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 laws and regulations of that other Contracting Party prior to the entry into force of this Agreement.
2. 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.
Article 26.
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. It shall remain in force for a period of ten years after its entry into force and shall continue in force unless terminated as provided in paragraph 2 below.
2. 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 year period or at any time thereafter.
3. 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 years from the date of termination of this Agreement.
4. The Annexes to this Agreement shall form an integral part of this Agreement.
5. Either Contracting Party may at any time request consultation with the other Contracting Party for the purpose of amending the present Agreement.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.
DONE in duplicate at Tashkent, on this fifteenth day of August 2008, in the English language.
FOR JAPAN:
FOR THE REPUBLIC OF UZBEKISTAN:
Attachments
1. The Schedule of a Contracting Party sets out, pursuant to paragraph 1 of Article 6, the reservations taken by that Contracting Party with respect to existing measures that do not conform with obligations imposed by:
(a) Paragraph 1 of Article 2 (National Treatment);
(b) Paragraph 3 of Article 2 (Most-Favored-Nation Treatment); or
(c) Article 5 (Prohibition of Performance Requirements).
2. Each reservation sets out the following elements:
(a) "Sector" refers to the general sector in which the reservation is taken;
(b) "Sub-Sector" refers to the specific sector in which the reservation is taken;
(c) "Industry Classification" refers, where applicable, only for transparency purposes, to the activity covered by the reservation according to domestic or international industry classification codes;
(d) "Type of Reservation" specifies the obligations referred to in paragraph 1 for which the reservation is taken;
(e) "Level of Government" indicates the level of government maintaining the measure for which the reservation is taken;
(f) "Measures" identifies the existing laws, regulations or other measures for which the reservation is taken. A measure cited in the "Measures" element:
(i) Means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) Includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(g) "Description" sets out, with regard to the obligations referred to in paragraph 1, the non-conforming aspects of the existing measures for which the reservation is taken.
3. In the interpretation of a reservation, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of this Agreement against which the reservation is taken, and the "Measures" element shall prevail over all other elements.
4. For the purposes of this Annex I, the term "JSIC" means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised on November 6, 2007.
Schedule of Japan
1 Sector: Finance
Sub-Sector: Banking
Industry Classification: JSIC 622 Banks, except central bank
JSIC 631 Financial institutions for small-businesses
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Level of Government: Central Government
Measures: Deposit Insurance Law (Law No. 34 of 1971), Article 2
Description: The deposit insurance system only covers financial institutions which have their head offices within the jurisdiction of Japan. The deposit insurance system does not cover deposits taken by branches of foreign banks.
2 Sector: Heat Supply
Sub-Sector:
Industry Classification: JSIC 3511 Heat Supply
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Level of Government: Central Government
Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investment in heat supply industry in Japan.
3 Sector: Information and Communications
Sub-Sector: Telecommunications
Industry Classification: JSIC 3700 Head offices primarily engaged in managerial operations
JSIC 3711 Regional telecommunications, except wire broadcast telephones
JSIC 3731 Services incidental to telecommunications
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Prohibition of Performance Requirements (Article 5)
Level of Government: Central Government
Measures: Law Concerning Nippon Telegraph and Telephone Corporation (Law No. 85 of 1984), Articles 6 and 10
Description:
1. Nippon Telegraph and Telephone Corporation may not enter the name and address in its register of shareholders if the aggregate of the ratio of the voting rights directly and/or indirectly held by the persons set forth in subparagraphs (a) through (c) reaches or exceeds one third:
(a) A natural person who does not have Japanese nationality;
(b) A foreign government or its representative; and
(c) A foreign legal person or a foreign entity.
2. Any natural person who does not have Japanese nationality may not assume the office of director or auditor of Nippon Telegraph and Telephone Corporation, Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation.
4 Sector: Information and Communications
Sub-Sector: Telecommunications and Internet Based Services
Industry Classification: JSIC 3711 Regional telecommunications, except wire broadcast telephones
JSIC 3712 Long-distance telecommunications
JSIC 3719 Miscellaneous fixed telecommunications
JSIC 3721 Mobile telecommunications
JSIC 401 Internet based services
Note: The activities covered by the reservation under JSIC 3711, 3712, 3719, 3721 or 401 are limited to the activities which are subject to the registration obligation under Article 9 of the Telecommunications Business Law (Law No. 86 of 1984).
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Level of Government: Central Government
Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in telecommunications business and internet based services in Japan.
5 Sector: Manufacturing
Sub-Sector: Drugs and Medicines Manufacturing
Industry Classification: JSIC 1653 Biological preparations
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Level of Government: Central Government
Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in biological preparations manufacturing industry in Japan. For greater certainty, "biological preparations manufacturing industry" deals with economic activities in establishment which mainly produces vaccine, serum, toxoid, antitoxin and some preparations similar to the aforementioned products, or blood products.
6 Sector: Manufacturing
Sub-Sector: Leather and Leather Products Manufacturing
Industry Classification: JSIC 1189 Textile apparel and accessories, n.e.c.
JSIC 1694 Gelatine and adhesives
JSIC 192 Rubber and plastic footwear and its findings
JSIC 2011 Leather tanning and finishing
JSIC 2021 Mechanical leather products, except gloves and mittens
JSIC 2031 Cut stock and findings for boots and shoes
JSIC 2041 Leather footwear
JSIC 2051 Leather gloves and mittens
JSIC 2061 Baggage
JSIC 207 Handbags and small leather cases
JSIC 2081 Fur skins
JSIC 2099 Miscellaneous leather products
JSIC 3253 Sporting and athletic goods
Note 1: The activities covered by the reservation under JSIC 1189 or 3253 are limited to the activities related to leather and leather products manufacturing.
Note 2: The activities covered by the reservation under JSIC 1694 are limited to the activities related to animal glue (nikawa) and gelatine manufacturing.
Type of Reservation: National Treatment (Paragraph 1 of Article 2)
Level of Government: Central Government
Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investment in leather and leather products manufacturing industry in Japan.
7 Sector: Matters Related to the Nationality of a Ship
Sub-Sector: