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To international arbitration if a local court in either Contracting Party has rendered its decision on the dispute.
Article 14. Place of Arbitration
Any arbitration under this Part shall, at the request of any party to the dispute, be held in a state that is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards signed in New York on 10 June 1958 ("New York Convention). Claims submitted to arbitration under this Part shall be considered to arise out of a commercial relationship or transaction for purposes of Article 1 of the New York Convention.
Article 15. Indemnification
A Contracting Party shall not assert as a defence, counter-claim, right of set-off or for any other reason, that indemnification or other compensation for all or part of the alleged damages has been received or will be received pursuant to an indemnity, guarantee or insurance contract.
Article 16. Applicable Law
1. A tribunal established under this Part shall decide the dispute in accordance with this Agreement and applicable rules and principles of international law.
2. Issues in dispute under Article 9 shall be decided, absent other agreement, in accordance with the law of the Contracting Party, party to the dispute, the law
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Governing the authorisation or agreement and such rules of international law as may be applicable.
Article 17. Awards and Enforcement
1. Arbitration awards, which may include an award of interest, shall be final and binding upon the parties to the dispute and may provide the following forms of relief:
a) a declaration that the Contracting Party has failed to comply with its obligations under this Agreement;
b) pecuniary compensation, which shall include interest from the time the loss or damage was incurred until time of payment;
c) restitution in kind in appropriate cases, provided that the Contracting Party may pay pecuniary compensation in lieu thereof where restitution is not practicable; and
d) with the agreement of the parties to the dispute, any other form of relief.
2. Each Contracting Party shall make provision for the effective enforcement of awards made pursuant to this Article and shall carry out without delay any such award issued in a proceeding to which it is party.
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Part TWO.
"SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING
PARTIES
Article 18. Scope, Consultations, Mediation and Conciliation
Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled amicably or through consultations, mediation or conciliation.
Article 19. Initiation of Proceedings
1. At the request of either Contracting Party a dispute concerning the interpretation or application of this Agreement may be submitted to an arbitral tribunal for decision not earlier than 60 days after such request has been notified to the other Contracting Party.
2. A Contracting Party may not initiate proceedings under this Part for a dispute regarding the infringement of rights of an investor which that investor has submitted to arbitration under Part One of Chapter Two of this Agreement, unless the other Contracting Party has failed to abide by and comply with the award rendered in that dispute or those proceedings have terminated without resolution by an arbitral tribunal of the investors claim.
Article 20. Formation of the Tribunal
1. The arbitral tribunal shall be constituted ad hoc as follows:
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Each Contracting Party shall appoint one member and these two members shall agree upon a national of a third State as their chairman. Such members shall be appointed within two months from the date one Contracting Party has informed the other Contracting Party that it intends to submit the dispute to an arbitral tribunal, the chairman of which shall be appointed within two further months.
2. If the periods specified in paragraph 1 of this Article are not observed, either Contracting Party may, in the absence of any relevant arrangement, invite the President of the International Court of Justice to make the necessary appointments. If the President of the International Court of Justice is a national of either of the Contracting Parties or if he/she is otherwise prevented from discharging the said function, the Vice-president or in case of his/her inability the member of the International Court of Justice next in seniority should be invited under the same conditions to make the necessary appointments.
3. Members of an arbitral tribunal shall be independent and impartial.
Article 21. Appliclable Law, Default Rules
1. The arbitral tribunal will decide disputes in accordance with this Agreement and the applicable rules and principles of international law.
2. Unless the parties to the dispute decide otherwise, the Permanent Court of Arbitration Optional Rules for Arbitrating Disputes shall apply to matters not governed by other provisions of this Part.
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Article 22. Awards
1. The tribunal, in its award, shall set out its findings of law and fact, together with the reasons therefore, and may, at the request of a Contracting Party, award the following forms of relief:
a) a declaration that an action of a Contracting Party is in contravention of its obligations under this Agreement;
b) a recommendation that a Contracting Party brings its actions into conformity with its obligations under this Agreements;
c) pecuniary compensation for any loss or damage to the requesting Contracting Party's investor or its investment; or
d) any other form of relief to which the Contracting Party against whom the award is made consents, including restitution in kind to an investor.
2. The arbitration award shall be final and binding upon the parties to the dispute.
Article 23. Costs
Each Contracting Party shall pay the costs of its representation in the proceedings. The costs of the tribunal shall be paid for equally by the Contracting Parties unless the tribunal directs that they be shared differently.
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Article 24. Enforcement
If pecuniary awards have not been complied with within one year from the date of the award they may be enforced in the courts of either Contracting Party with jurisdiction over assets of the defaulting party.
Chapter THREE. Final Provisions
Article 25. Application of the Agreement
1. The provisions of this Agreement shall apply to future investments made by investors of one Contracting Party in the territory of the other Contracting Party, and also to the investments existing in accordance with the laws of the Contracting Parties on the date this Agreement came into force.
2. This Agreement shall not apply to claims which have been settled or procedures which have been initiated prior to its entry into force.
Article 26. Consultations
Each Contracting Party may propose to the other Contracting Party consultations on any matter relating to this Agreement. These consultations shall be held at a place and at a time agreed upon through diplomatic channels.
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Article 27. Entry Into Force and Duration
1. The Contracting Parties shall notify each other when the constitutional requirements for the entry into force of this Agreement have been fulfilled. The Agreement shall enter into force on the first day of the second month following the date of receipt of the last notification.
2. This Agreement shall remain in force a period of ten years; it shall be extended thereafter for an indefinite period and may be denounced in writing through diplomatic channels by either Contracting Party giving twelve months' notice.
3. In respect of investments made prior to the date of termination of the present Agreement the provisions of Articles 1 to 25 of the present Agreement shall continue to be effective for a further period of ten years from the date of termination of the present Agreement.
Conclusion
DONE at Guatemala City, on 16 th January 2006 in duplicate, in the German, Spanish and English languages, all texts being equally authentic. In case of difference of interpretation the English text shall prevail.
For the Republic of Austria:
For the Republic of Guatemala:
Monika Gruber-Lang m.
p. Jorge Briz Abularach m.
p. Www.ris.bka.gv.at