European Energy Charter 7

European Energy Charter

 

PART III

INVESTMENT PROMOTION AND PROTECTION

ARTICLE 10

PROMOTION, PROTECTION AND TREATMENT OF INVESTMENTS

(1) Each Contracting Party shall, in accordance with the provisions of this
Treaty, encourage and create stable, equitable, favourable and transparent
conditions for Investors of other Contracting Parties to Make Investments in its
Area. Such conditions shall include a commitment to accord at all times to
Investments of Investors of other Contracting Parties fair and equitable
treatment. Such Investments shall also enjoy the most constant protection and
security and no Contracting Party shall in any way impair by unreasonable or
discriminatory measures their management, maintenance, use, enjoyment or
disposal. In no case shall such Investments be accorded treatment less
favourable than that required by international law, including treaty
obligations. Each Contracting Party shall observe any obligations it has
entered into with an Investor or an Investment of an Investor of any other
Contracting Party. (2) Each Contracting Party shall endeavour to accord to Investors of other
Contracting Parties, as regards the Making of Investments in its Area, the
Treatment described in paragraph (3).

(3) For the purposes of this Article, “Treatment”means treatment accorded by a
Contracting Party which is no less favourable than that which it accords to its
own Investors or to Investors of any other Contracting Party or any third state,
whichever is the most favourable.

(4) A supplementary treaty shall, subject to conditions to be laid down therein,
oblige each party thereto to accord to Investors of other parties, as regards
the Making of Investments in its Area, the Treatment described in paragraph (3).
That treaty shall be open for signature by the states and Regional Economic
Integration Organizations which have signed or acceded to this Treaty.
Negotiations towards the supplementary treaty shall commence not later than 1 January 1995, with a view to concluding it by 1 January 1998.

(5) Each Contracting Party shall, as regards the Making of Investments in its
Area, endeavour to:

(a) limit to the minimum the exceptions to the Treatment described in
paragraph (3);

(b) progressively remove existing restrictions affecting Investors of other
Contracting Parties.

(6) (a) A Contracting Party may, as regards the Making of Investments in its
Area, at any time declare voluntarily to the Charter Conference, through the
Secretariat, its intention not to introduce new exceptions to the Treatment
described in paragraph (3).

(b) A Contracting Party may, furthermore, at any time make a voluntary
commitment to accord to Investors of other Contracting Parties, as regards the
Making of Investments in some or all Economic Activities in the Energy Sector in
its Area, the Treatment described in paragraph (3). Such commitments shall be
notified to the Secretariat and listed in Annex VC and shall be binding under
this Treaty.

(7) Each Contracting Party shall accord to Investments in its Area of Investors
of other Contracting Parties, and their related activities including management
maintenance, use, enjoyment or disposal, treatment no less favourable than that
which it accords to Investments of its own Investors or of the Investors of any
other Contracting Party or any third state and their related activities
including management, maintenance, use, enjoyment or disposal, whichever is the
most favourable.

8) The modalities of application of paragraph (7) in relation to programmes
under which a Contracting Party provides grants or other financial assistance,
or enters into contracts, for energy technology research and development, shall
be reserved for the supplementary treaty described in paragraph (4). EachContracting Party shall through the Secretariat keep the Charter Conference
informed of the modalities it applies to the programmes described in this
paragraph.

(9) Each state or Regional Economic Integration Organization which signs or
accedes to this Treaty shall, on the date it signs the Treaty or deposits its
instrument of accession, submit to the Secretariat a report summarizing all
laws, regulations or other measures relevant to:

(a) exceptions to paragraph (2); or

(b) the programmes referred to in paragraph (8).

A Contracting Party shall keep its report up to date by promptly submitting
amendments to the Secretariat. The Charter Conference shall review these
reports periodically.

In respect of subparagraph (a) the report may designate parts of the energy
sector in which a Contracting Party accords to Investors of other Contracting
Parties the Treatment described in paragraph (3).

In respect of subparagraph (b) the review by the Charter Conference may
consider the effects of such programmes on competition and Investments.

(10) Notwithstanding any other provision of this Article, the treatment
described in paragraphs (3) and (7) shall not apply to the protection of
Intellectual Property; instead, the treatment shall be as specified in the
corresponding provisions of the applicable international agreements for the
protection of Intellectual Property rights to which the respective Contracting
Parties are parties.

(11) For the purposes of Article 26, the application by a Contracting Party of a
trade-related investment measure as described in Article 5(1) and (2) to an
Investment of an Investor of another Contracting Party existing at the time of
such application shall,subject to Article 5(3) and (4), be considered a breach
of an obligation of the former Contracting Party under this Part.

(12) Each Contracting Party shall ensure that its domestic law provides
effective means for the assertion of claims and the enforcement of rights with
respect to Investments, investment agreements, and investment authorizations.

 

Conclusion

Notes

See Also

References and Further Reading

About the Author/s and Reviewer/s

Author: international

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