Canada - Kuwait BIT (2011)
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5. To the extent that a Tribunal's confidentiality order designates information as confidential and a Party's law on access to information requires public access to that information, the Party's law on access to information shall prevail. However, a Party should endeavour to apply its law on access to information so as to protect information designated confidential by the Tribunal.

Article 31. Submissions by a Non-disputing Party

A Tribunal shall have the authority to consider and accept written submissions from a person or entity that is not a disputing party and that has a significant interest in the arbitration. The Tribunal shall ensure that any non-disputing party submission does not disrupt the proceedings and does not unduly burden or unfairly prejudice either disputing party.

Article 32. Governing Law

1. A Tribunal established under this Section shall decide the issues in dispute in accordance with this Agreement and applicable rules of international law. An interpretation by the Parties of a provision of this Agreement shall be binding on a Tribunal established under this Section, and any award under this Section shall be consistent with such interpretation.

2. Where a disputing Contracting Party asserts as a defence that the measure alleged to be a breach is within the scope of a reservation or an exception as set out in paragraph 1 of Article 16, or Annex 1 or Annex 2, on request of the disputing Contracting Party, the Tribunal shall request the interpretation of the Parties on the issue. Within 60 days of delivery of the request, the Parties shall submit in writing their interpretation to the Tribunal. The interpretation shall be binding on the Tribunal. If the Parties fail to submit an interpretation within 60 days, the Tribunal shall decide the issue.

Article 33. Expert Reports

Without prejudice to the appointment of other kinds of experts where authorized by the applicable arbitration rules, and unless the disputing parties disapprove, a Tribunal may appoint experts to report to it in writing on any factual issue concerning environmental, health, safety or other scientific matters raised by a disputing party, subject to such terms and conditions as the disputing parties may agree.

Article 34. Interim Measures of Protection and Final Award

1. A Tribunal may order an interim measure of protection to preserve the rights of a disputing party or to ensure that the Tribunal's jurisdiction is made fully effective, including an order to preserve evidence in the possession or control of a disputing party or to protect the Tribunal's jurisdiction. A Tribunal may not order attachment or enjoin the application of the measure alleged to constitute a breach referred to in Article 20 (Claim by an Investor of a Party on Its Own Behalf or on Behalf of an Enterprise). For the purposes of this paragraph, an order includes a recommendation.

2. Where a Tribunal makes a final award against the disputing Contracting Party, the Tribunal may award, separately or in combination:

(a) monetary damages and any applicable interest;

(b) restitution of property, in which case the award shall provide that the disputing Contracting Party may pay monetary damages and any applicable interest in lieu of restitution.

The Tribunal may also award costs in accordance with the applicable arbitration rules.

3. Subject to paragraph 2, where a claim is made under paragraph 2 of Article 20:

(a) an award of monetary damages and any applicable interest shall provide that the sum be paid to the enterprise;

(b) an award of restitution of property shall provide that restitution be made to the enterprise; and

(c) the award shall provide that it is made without prejudice to any right in the relief that any person may have under applicable domestic law.

4. A Tribunal may not order a disputing Contracting Party to pay punitive damages.

Article 35. Finality and Enforcement of an Award

1. An award made by a Tribunal shall have no binding force except between the disputing parties and in respect of that particular case.

2. Subject to paragraph 3 and the applicable review procedure for an interim award, a disputing party shall abide by and comply with an award without delay.

3. A disputing party may not seek enforcement of a final award until:

(a) in the case of a final award made under the ICSID Convention:

(1) 120 days have elapsed from the date the award was rendered and no disputing party has requested revision or annulment of the award, or

(2) revision or annulment proceedings have been completed; and

(b) in the case of a final award under the ICSID Additional Facility Rules or the UNCITRAL Arbitration Rules:

(1) 90 days have elapsed from the date the award was rendered and no disputing party has commenced a proceeding to revise, set aside or annul the award, or

(2) a court has dismissed or allowed an application to revise, set aside or annul the award and there is no further appeal.

4. Each Party shall provide for the enforcement of an award in its territory.

5. A claim that is submitted to arbitration under this Section shall be considered to arise out of a commercial relationship or transaction for purposes of Article I of the New York Convention.

Article 36. Receipts Under Insurance or Guarantee Contracts

In an arbitration under this Section, a disputing Contracting Party shall not assert as a defence, counterclaim, right of setoff or otherwise, that the disputing investor has received or will receive, pursuant to an insurance or guarantee contract, indemnification or other compensation for all or part of its alleged damages.

Section D. State-to-state Dispute Settlement Procedures

Article 37. Disputes between the Parties

1. Either Party may request consultations on the interpretation or application of this Agreement. The other Party shall give sympathetic consideration to the request. Any dispute between the Parties concerning the interpretation or application of this Agreement shall, whenever possible, be settled amicably through consultations.

2. If a dispute cannot be settled through consultations, it shall, at the request of either Party, be submitted to an arbitral panel for decision.

3. An arbitral panel shall be constituted for each dispute. Within two months after receipt through diplomatic channels of the request for arbitration, each Party shall appoint one member to the arbitral panel. The two members shall then select a national of a third State who, upon approval by the two Parties, shall be appointed Chair of the arbitral panel. The Chair shall be appointed within two months from the date of appointment of the other two members of the arbitral panel.

4. If within the periods specified in paragraph 3 of this Article the necessary appointments have not been made, either Party may invite the President of the International Court of Justice to make the necessary appointments. If the President is a national of either Party or is otherwise prevented from discharging the said function, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is a national of either Party or is prevented from discharging the said function, the Member of the International Court of Justice next in seniority, who is not a national of either Party, shall be invited to make the necessary appointments.

5. Arbitrators shall have expertise or experience in public international law, international trade or international investment rules, or the resolution of disputes arising under international trade or international investment agreements. They shall be independent of, and not be affiliated with or take instructions from, either Party.

6. Where a Party determines that the dispute involves measures relating to financial institutions, or to investors or investments of such investors in financial institutions, or where the disputing Contracting Party invokes paragraph 6 of Article 11 (Transfers), or paragraphs 2 or 3 of Article 17 (General Exceptions), the arbitrators shall, in addition to the criteria set out in paragraph 5, have expertise or experience in financial services or practice, which may include the regulation of financial institutions.

7. The arbitral panel shall determine its own procedure. The arbitral panel shall reach its decision by a majority of votes. Such decision shall be binding on both Parties. Unless otherwise agreed, the decision of the arbitral panel shall be rendered within six months of the appointment of the Chair.

8. Each Party shall bear the costs of its own member of the arbitral panel and of its representation in the arbitral proceedings. The costs related to the Chair and any remaining costs shall be borne equally by the Parties. The arbitral panel may, however, award that a higher proportion of costs be borne by one of the two Parties, and this award shall be binding on both Parties.

9. Within 60 days of the decision of an arbitral panel, the Parties shall reach agreement on the manner in which to resolve their dispute. Such agreement shall normally implement the decision of the panel. If the Parties fail to reach agreement, the Party bringing the dispute shall be entitled to compensation or to suspend benefits of equivalent value to those awarded by the panel.

Section E. Final Provisions

Article 38. Consultations and other Actions

1. A Party may request in writing consultation with the other Party regarding any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement.

2. The consultations under paragraph 1 may address, inter alia, matters relating to: (a) the implementation of this Agreement; (b) the interpretation or application of this Agreement.

3. Further to consultations under this Article, the Parties may take any action as they may agree, including making and adopting rules supplementing the applicable arbitral rules under Section C of this Agreement.

Article 39. Extent of Obligations

The Parties shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance, except as otherwise provided in this Agreement, by sub-national governments.

Article 40. Exclusions

The dispute settlement provisions of Sections C and D of this Agreement shall not apply to the matters in Annex 3.

Article 41. Application and Entry Into Force

1. All Annexes shall form an integral part of this Agreement.

2. Each Party shall notify the other in writing of the completion of the procedures required in its territory for the entry into force of this Agreement. This Agreement shall enter into force on the date of the latter of the two notifications.

3. This Agreement shall remain in force unless either Party notifies the other Party in writing of its intention to terminate it. The termination of this Agreement shall become effective one year after notice of termination has been received by the other Party. In respect of investments or commitments to invest made prior to the date when the termination of this Agreement becomes effective, Articles 1 to 40 inclusive, as well as paragraphs 1 and 2 of this Article, shall remain in force for a period of twenty (20) years.

Conclusion

IN WITNESS WHEREOF, the undersigned, duly authorised by their respective Governments, have signed this Agreement.

DONE in two originals at Ottawa on this 24 day of September 2011, corresponding to the 28th day of SHawwal, 1432 H in the English, French and Arabic languages, all language versions being equally authentic.

FOR CANADA

FOR THE STATE OF KUWAIT

Attachments

Annex 1

Reservations for Future Measures

Schedule of Canada

In accordance with paragraph 2 of Article 16 of this Agreement, Canada reserves the right to adopt or maintain any measure with respect to the following sectors or matters:

° social services (i.e.: public law enforcement; correctional services; income security or insurance; social security or insurance; social welfare; public education; public training; health and child care);

. rights or preferences provided to aboriginal peoples or to socially or economically disadvantaged minorities;

° residency requirements for ownership of oceanfront land;

. government securities (i.e. acquisition, sale or other disposition by nationals of the other Party of bonds, treasury bills or other kinds of debt securities issued by the Government of Canada or a sub-national government);

° maritime cabotage, which means (a) the transportation of either goods or passengers by ship between points in the territory of Canada or above the continental shelf of Canada, either directly or by way of a place outside Canada; but with respect to waters above the continental shelf of Canada, the transportation of either goods or passengers only in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada; and (b) the engaging by ship in any other marine activity of a commercial nature in the territory of Canada and, with respect to waters above the continental shelf, in such other marine activities of a commercial nature that are in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada;

- licensing fishing or fishing related activities, including entry of foreign fishing vessels to Canada's exclusive economic zone, territorial sea, internal waters or ports and use of any services therein;

- telecommunications services, provided that the measure is not inconsistent with Canada's obligations in that sector under Articles XVI, XVII and XVIII of the World Trade Organisation General Agreement on Trade in Services; and

- with respect to the services sector, any measure that relates to the establishment or acquisition in Canada of an investment and that is not inconsistent with Canada's obligations under Articles I], XVI, XVII and XVIII of the World Trade Organisation General Agreement on Trade in Services.

Schedule of the State of Kuwait

In accordance with paragraph 2 of Article 16 of this Agreement, the State of Kuwait reserves the right to adopt or maintain any measure with respect to the following sectors or matters:

- oil and gas exploration and production;

- issuance of newspapers and magazines, and opening of publishing houses;

- real estate speculation.

Annex 2

Exceptions from Most-Favoured-Nation Treatment

1. Article 5 shall not apply to treatment accorded under all bilateral or multilateral international agreements in force or signed prior to the date of entry into force of this Agreement.

2. Article 5 shall not apply to treatment by a Party pursuant to any existing or future bilateral or multilateral agreement:

(a) establishing, strengthening or expanding a free trade area or customs union;

(b) relating to:

(1) aviation;

(2) fisheries;

(3) maritime matters, including salvage.

Annex 3

Exclusions from Dispute Settlement

A decision by Canada following a review under the Investment Canada Act, R.S.C, 1985, c.28 (1st Supp.), with respect to whether or not to permit an acquisition that is subject to review, shall not be subject to the dispute settlement provisions under Sections C or D of this Agreement.

Previous page Page 3
  • Section   A Definitions 1
  • Article   1 Definitions 1
  • Section   B Substantive Obligations 1
  • Article   2 Scope 1
  • Article   3 Promotion of Investment 1
  • Article   4 National Treatment 1
  • Article   5 Most-favoured-nation Treatment 1
  • Article   6 Minimum Standard of Treatment 1
  • Article   7 Compensation for Losses 1
  • Article   8 Senior Management, Boards of Directors and Entry of Personnel 1
  • Article   9 Performance Requirements 1
  • Article   10 Expropriation 1
  • Article   11 Transfers 1
  • Article   12 Transparency 1
  • Article   13 Subrogation 1
  • Article   14 Taxation Measures 1
  • Article   15 Health, safety and environmental measures 2
  • Article   16 Reservations and exceptions 2
  • Article   17 General exceptions 2
  • Article   18 Denial of benefits 2
  • Section   C Settlement of disputes between an investor and the host party 2
  • Article   19 Purpose 2
  • Article   20 Claim by an investor of a party on its own behalf or on behalf of an enterprise 2
  • Article   21 Conditions precedent to submission of a claim to arbitration 2
  • Article   22 Special rules regarding financial services 2
  • Article   23 Submission of a claim to arbitration 2
  • Article   24 Consent to arbitration 2
  • Article   25 Arbitrators 2
  • Article   26 Agreement to appointment of arbitrators 2
  • Article   27 Consolidation 2
  • Article   28 Documents to, and participation of, the other party 2
  • Article   29 Place of arbitration 2
  • Article   30 Public access to hearings and documents 2
  • Article   31 Submissions by a non-disputing party 3
  • Article   32 Governing law 3
  • Article   33 Expert reports 3
  • Article   34 Interim measures of protection and final award 3
  • Article   35 Finality and enforcement of an award 3
  • Article   36 Receipts under insurance or guarantee contracts 3
  • Section   D State-to-state dispute settlement procedures 3
  • Article   37 Disputes between the parties 3
  • Section   E Final provisions 3
  • Article   38 Consultations and other actions 3
  • Article   39 Extent of obligations 3
  • Article   40 Exclusions 3
  • Article   41 Application and entry into force 3
  • Annex 1 3
  • Annex 2 3
  • Annex 3 3