Paragraphs in "Energy Charter Treaty" coded as SUBS

Displaying 1 - 313 of 313
Label Provision
Art.3 Article 3
Art.3.1x The Contracting Parties shall work to promote access to international markets on commercial terms, and generally to develop an open and competitive market, for Energy Materials and Products.
Art.5 Article 5
Art.5.1 1) A Contracting Party shall not apply any trade-related investment measure that is inconsistent with the provisions of article III or XI of the GATT; this shall be without prejudice to the Contracting Party's rights and obligations under the GATT and Related Instruments and Article 29.
Art.5.2 2) Such measures include any investment measure which is mandatory or enforceable under domestic law or under any administrative ruling, or compliance with which is necessary to obtain an advantage, and which requires:
Art.5.2.a a) the purchase or use by an enterprise of products of domestic origin or from any domestic source, whether specified in terms of particular products, in terms of volume or value of products, or in terms of a proportion of volume or value of its local production; or
Art.5.2.b b) that an enterprise's purchase or use of imported products be limited to an amount related to the volume or value of local products that it exports;
Art.5.2.b.ix or which restricts:
Art.5.2.c c) the importation by an enterprise of products used in or related to its local production, generally or to an amount related to the volume or value of local production that it exports;
Art.5.2.d d) the importation by an enterprise of products used in or related to its local production by restricting its access to foreign exchange to an amount related to the foreign exchange inflows attributable to the enterprise; or
Art.5.2.e e) the exportation or sale for export by an enterprise of products, whether specified in terms of particular products, in terms of volume or value of products, or in terms of a proportion of volume or value of its local production.
Art.5.3 3) Nothing in paragraph 1) shall be construed to prevent a Contracting Party from applying the trade-related investment measures described in subparagraphs 2)a) and c) as a condition of eligibility for export promotion, foreign aid, government procurement or preferential tariff or quota programmes.
Art.5.4 4) Notwithstanding paragraph 1), a Contracting Party may temporarily continue to maintain trade-related investment measures which were in effect more than 180 days before its signature of this Treaty, subject to the notification and phase-out provisions set out in Annex TRM.
Art.6 Article 6
Art.6.1 1) Each Contracting Party shall work to alleviate market distortions and barriers to competition in Economic Activity in the Energy Sector.
Art.6.2 2) Each Contracting Party shall ensure that within its jurisdiction it has and enforces such laws as are necessary and appropriate to address unilateral and concerted anti-competitive conduct in Economic Activity in the Energy Sector.
Art.6.3 3) Contracting Parties with experience in applying competition rules shall give full consideration to providing, upon request and within available resources, technical assistance on the development and implementation of competition rules to other Contracting Parties.
Art.6.4 4) Contracting Parties may cooperate in the enforcement of their competition rules by consulting and exchanging information.
Art.6.5 5) If a Contracting Party considers that any specified anti-competitive conduct carried out within the Area of another Contracting Party is adversely affecting an important interest relevant to the purposes identified in this Article, the Contracting Party may notify the other Contracting Party and may request that its competition authorities initiate appropriate enforcement action. The notifying Contracting Party shall include in such notification sufficient information to permit the notified Contracting Party to identify the anti-competitive conduct that is the subject of the notification and shall include an offer of such further information and cooperation as the notifying Contracting Party is able to provide. The notified Contracting Party or, as the case may be, the relevant competition authorities may consult with the competition authorities of the notifying Contracting Party and shall accord full consideration to the request of the notifying Contracting Party in deciding whether or not to initiate enforcement action with respect to the alleged anti-competitive conduct identified in the notification. The notified Contracting Party shall inform the notifying Contracting Party of its decision or the decision of the relevant competition authorities and may if it wishes inform the notifying Contracting Party of the grounds for the decision. If enforcement action is initiated, the notified Contracting Party shall advise the notifying Contracting Party of its outcome and, to the extent possible, of any significant interim development.
Art.6.6 6) Nothing in this Article shall require the provision of information by a Contracting Party contrary to its laws regarding disclosure of information, confidentiality or business secrecy.
Art.6.7 7) The procedures set forth in paragraph 5) and Article 271) shall be the exclusive means within this Treaty of resolving any disputes that may arise over the implementation or interpretation of this Article.
Art.7 Article 7
Art.7.1 1) Each Contracting Party shall take the necessary measures to facilitate the Transit of Energy Materials and Products consistent with the principle of freedom of transit and without distinction as to the origin, destination or ownership of such Energy Materials and Products or discrimination as to pricing on the basis of such distinctions, and without imposing any unreasonable delays, restrictions or charges.
Art.7.2 2) Contracting Parties shall encourage relevant entitles to cooperate in:
Art.7.2.a a) modernizing Energy Transport Facilities necessary to the Transit of Energy Materials and Products;
Art.7.2.b b) the development and operation of Energy Transport Facilities serving the Areas of more than one Contracting Party;
Art.7.2.c c) measures to mitigate the effects of interruptions in the supply of Energy Materials and Products;
Art.7.2.d d) facilitating the interconnection of Energy Transport Facilities.
Art.7.3 3) Each Contracting Party undertakes that its provisions relating to transport of Energy Materials and Products and the use of Energy Transport Facilities shall treat Energy Materials and Products in Transit in no less favourable a manner than its provisions treat such materials and products originating in or destined for its own Area, unless an existing international agreement provides otherwise.
Art.7.4 4) In the event that Transit of Energy Materials and Products cannot be achieved on commercial terms by means of Energy Transport Facilities the Contracting Parties shall not place obstacles in the way of new capacity being established, except as may be otherwise provided in applicable legislation which is consistent with paragraph 1).
Art.7.5 5) A Contracting Party through whose Area Energy Materials and Products may transit shall not be obliged to
Art.7.5.a a) permit the construction or modification of Energy Transport Facilities; or
Art.7.5.b b) permit new or additional Transit through existing Energy Transport Facilities,
Art.7.5.cx which it demonstrates to the other Contracting Parties concerned would endanger the security or efficiency of its energy systems, including the security of supply.
Art.7.5.dx Contracting Parties shall, subject to paragraphs 6) and 7), secure established flows of Energy Materials and Products to, from or between the Areas of other Contracting Parties.
Art.7.6 6) A Contracting Party through whose Area Energy Materials and Products transit shall not, in the event of a dispute over any matter arising from that Transit, interrupt or reduce, permit any entity subject to its control to interrupt or reduce, or require any entity subject to its jurisdiction to interrupt or reduce the existing flow of Energy Materials and Products prior to the conclusion of the dispute resolution procedures set out in paragraph 7), except where this is specifically provided for in a contract or other agreement governing such Transit or permitted in accordance with the conciliator's decision.
Art.7.7 7) The following provisions shall apply to a dispute described in paragraph 6), but only following the exhaustion of all relevant contractual or other dispute resolution remedies previously agreed between the Contracting Parties party to the dispute or between any entity referred to in paragraph 6) and an entity of another Contracting Party party to the dispute:
Art.7.7.a a) A Contracting Party party to the dispute may refer it to the Secretary-General by a notification summarizing the matters in dispute. The Secretary-General shall notify all Contracting Parties of any such referral.
Art.7.7.b b) Within 30 days of receipt of such a notification, the Secretary-General, in consultation with the parties to the dispute and the other Contracting Parties concerned, shall appoint a conciliator. Such a conciliator shall have experience in the matters subject to dispute and shall not be a national or citizen of or permanently resident in a party to the dispute or one of the other Contracting Parties concerned.
Art.7.7.c c) The conciliator shall seek the agreement of the parties to the dispute to a resolution thereof or upon a procedure to achieve such resolution. If within 90 days of his appointment he has failed to secure such agreement, he shall recommend a resolution to the dispute or a procedure to achieve such resolution and shall decide the interim tariffs and other terms and conditions to be observed for Transit from a date which he shall specify until the dispute is resolved.
Art.7.7.d d) The Contracting Parties undertake to observe and ensure that the entities under their control or jurisdiction observe any interim decision under subparagraph c) on tariffs, terms and conditions for 12 months following the conciliator's decision or until resolution of the dispute, whichever is earlier.
Art.7.7.e e) Notwithstanding subparagraph b) the Secretary-General may elect not to appoint a conciliator if in his judgement the dispute concerns Transit that is or has been the subject of the dispute resolution procedures set out in subparagraphs a) to d) and those proceedings have not resulted in a resolution of the dispute.
Art.7.7.f f) The Charter Conference shall adopt standard provisions concerning the conduct of conciliation and the compensation of conciliators.
Art.7.8 8) Nothing in this Article shall derogate from a Contracting Party's rights and obligations under international law including customary international law, existing bilateral or multilateral agreements, including rules concerning submarine cables and pipelines.
Art.7.9 9) This Article shall not be so interpreted as to oblige any Contracting Party which does not have a certain type of Energy Transport Facilities used for Transit to take any measure under this Article with respect to that type of Energy Transport Facilities. Such a Contracting Party is, however, obliged to comply with paragraph 4).
Art.7.10 10) For the purposes of this Article:
Art.7.10.a a) "Transit" means
Art.7.10.a.i i) the carriage through the Area of a Contracting Party, or to or from port facilities in its Area for loading or unloading, of Energy Materials and Products originating in the Area of another state and destined for the Area of a third state, so long as either the other state or the third state is a Contracting Party; or
Art.7.10.a.ii ii) the carriage through the Area of a Contracting Party of Energy Materials and Products originating in the Area of another Contracting Party and destined for the Area of that other Contracting Party, unless the two Contracting Parties concerned decide otherwise and record their decision by a joint entry in Annex N. The two Contracting Parties may delete their listing in Annex N by delivering a joint written notification of their intentions to the Secretariat, which shall transmit that notification to all other Contracting Parties. The deletion shall take effect four weeks after such former notification.
Art.7.10.b b) "Energy Transport Facilities" consist of high-pressure gas transmission pipelines, high-voltage electricity transmission grids and lines, crude oil transmission pipelines, coal slurry pipelines, oil product pipelines, and other fixed facilities specifically for handling Energy Materials and Products.
Art.8 Article 8
Art.8.1 1) The Contracting Parties agree to promote access to and transfer of energy technology on a commercial and non-discriminatory basis to assist effective trade in Energy Materials and Products and Investment and to implement the objectives of the Charter subject to their laws and regulations, and to the protection of Intellectual Property rights.
Art.8.2 2) Accordingly, to the extent necessary to give effect to paragraph 1) the Contracting Parties shall eliminate existing and create no new obstacles to the transfer of technology in the field of Energy Materials and Products and related equipment and services, subject to non-proliferation and other international obligations.
Art.9 Article 9
Art.9.1 1) The Contracting Parties acknowledge the importance of open capital markets in encouraging the flow of capital to finance trade in Energy Materials and Products and for the making of and assisting with regard to Investments in Economic Activity in the Energy Sector in the Areas of other Contracting Parties, particularly those with economies in transition. Each Contracting Party shall accordingly endeavour to promote conditions for access to its capital market by companies and nationals of other Contracting Parties, for the purpose of financing trade in Energy Materials and Products and for the purpose of Investment in Economic Activity in the Energy Sector in the Areas of those other Contracting Parties, on a basis no less favourable than that which it accords in like circumstances to its own companies and nationals or companies and nationals of any other Contracting Party or any third state, whichever is the most favourable.
Art.9.2 2) A Contracting Party may adopt and maintain programmes providing for access to public loans, grants, guarantees or insurance for facilitating trade or Investment abroad. It shall make such facilities available, consistent with the objectives, constraints and criteria of such programmes including any objectives, constraints or criteria relating to the place of business of an applicant for any such facility or the place of delivery of goods or services supplied with the support of any such facility) for Investments in the Economic Activity in the Energy Sector of other Contracting Parties or for financing trade in Energy Materials and Products with other Contracting Parties.
Art.9.3 3) Contracting Parties shall, in implementing programmes in Economic Activity in the Energy Sector to improve the economic stability and investment climates of the Contracting Parties, seek as appropriate to encourage the operations and take advantage of the expertise of relevant international financial institutions.
Art.9.4 4) Nothing in this Article shall prevent:
Art.9.4.a a) financial institutions from applying their own lending or underwriting practices based on market principles and prudential considerations; or
Art.9.4.b b) a Contracting Party from taking measures:
Art.9.4.b.i i) for prudential reasons, including the protection of Investors, consumers, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier, or
Art.9.4.b.ii ii) to ensure the integrity and stability of its financial system and capital markets.
Sect.3 PART III
Art.10 Article 10
Art.10.1 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.
Art.10.2 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).
Art.10.3 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.
Art.10.4 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.
Art.10.5 5) Each Contracting Party shall, as regards the Making of Investments in its Area, endeavour to:
Art.10.5.a a) limit to the minimum the exceptions to the Treatment described in paragraph 3);
Art.10.5.b b) progressively remove existing restrictions affecting Investors of other Contracting Parties.
Art.10.6.a 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).
Art.10.6.b 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.
Art.10.7 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.
Art.10.8 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). Each Contracting Party shall through the Secretariat keep the Charter Conference informed of the modalities it applies to the programmes described in this paragraph.
Art.10.9 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:
Art.10.9.a a) exceptions to paragraph 2); or
Art.10.9.b b) the programmes referred to in paragraph 8).
Art.10.9.cx 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.
Art.10.9.dx 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).
Art.10.9.ex In respect of subparagraph b) the review by the Charter Conference may consider the effects of such programmes on competition and Investments.
Art.10.10 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.
Art.10.11 11) For the purposes of Article 26, the application by a Contracting Party of a trade-related investment measure as described in Article 51) and 2) to an Investment of an Investor of another Contracting Party existing at the time of such application shall, subject to Article 53) and 4), be considered a breach of an obligation of the former Contracting Party under this Part.
Art.10.12 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.
Art.11 Article 11
Art.11.1 1) A Contracting Party shall, subject to its laws and regulations relating to the entry, stay and work of natural persons, examine in good faith requests by Investors of another Contracting Party, and key personnel who are employed by such Investors or by Investments of such Investors, to enter and remain temporarily in its Area to engage in activities connected with the making or the development, management, maintenance, use, enjoyment or disposal of relevant Investments, including the provision of advice or key technical services.
Art.11.2 2) A Contracting Party shall permit Investors of another Contracting Party which have Investments in its Area, and Investments of such Investors, to employ any key person of the Investor's or the Investment's choice regardless of nationality and citizenship provided that such key person has been permitted to enter, stay and work in the Area of the former Contracting Party and that the employment concerned conforms to the terms, conditions and time limits of the permission granted to such key person.
Art.12 Article 12
Art.12.1 1) Except where Article 13 applies, an Investor of any Contracting Party which suffers a loss with respect to any Investment in the Area of another Contracting Party owing to war or other armed conflict, state of national emergency, civil disturbance, or other similar event in that Area, shall be accorded by the latter Contracting Party, as regards restitution, indemnification, compensation or other settlement, treatment which is the most favourable of that which that Contracting Party accords to any other Investor, whether its own Investor, the Investor of any other Contracting Party, or the Investor of any third state.
Art.12.2 2) Without prejudice to paragraph 1), an Investor of a Contracting Party which, in any of the situations referred to in that paragraph, suffers a loss in the Area of another Contracting Party resulting from
Art.12.2.a a) requisitioning of its Investment or part thereof by the latter's forces or authorities; or
Art.12.2.b b) destruction of its Investment or part thereof by the latter's forces or authorities, which was not required by the necessity of the situation,
Art.12.2.cx shall be accorded restitution or compensation which in either case shall be prompt, adequate and effective.
Art.13 Article 13
Art.13.1 1) Investments of Investors of a Contracting Party in the Area of any other Contracting Party shall not be nationalized, expropriated or subjected to a measure or measures having effect equivalent to nationalization or expropriation hereinafter referred to as "Expropriation") except where such Expropriation is:
Art.13.1.a a) for a purpose which is in the public interest;
Art.13.1.b b) not discriminatory;
Art.13.1.c c) carried out under due process of law; and
Art.13.1.d d) accompanied by the payment of prompt, adequate and effective compensation.
Art.13.1.ex Such compensation shall amount to the fair market value of the Investment expropriated at the time immediately before the Expropriation or impending Expropriation became known in such a way as to affect the value of the Investment hereinafter referred to as the "Valuation Date").
Art.13.1.fx Such fair market value shall at the request of the Investor be expressed in a Freely Convertible Currency on the basis of the market rate of exchange existing for that currency on the Valuation Date. Compensation shall also include interest at a commercial rate established on a market basis from the date of Expropriation until the date of payment.
Art.13.2 2) The Investor affected shall have a right to prompt review, under the law of the Contracting Party making the Expropriation, by a judicial or other competent and independent authority of that Contracting Party, of its case, of the valuation of its Investment, and of the payment of compensation, in accordance with the principles set out in paragraph 1).
Art.13.3 3) For the avoidance of doubt, Expropriation shall include situations where a Contracting Party expropriates the assets of a company or enterprise in its Area in which an Investor of any other Contracting Party has an Investment, including through the ownership of shares.
Art.14 Article 14
Art.14.1 1) Each Contracting Party shall with respect to Investments in its Area of Investors of any other Contracting Party guarantee the freedom of transfer into and out of its Area, including the transfer of:
Art.14.1.a a) the initial capital plus any additional capital for the maintenance and development of an Investment;
Art.14.1.b b) Returns;
Art.14.1.c c) payments under a contract, including amortization of principal and accrued interest payments pursuant to a loan agreement;
Art.14.1.d d) unspent earnings and other remuneration of personnel engaged from abroad in connection with that Investment;
Art.14.1.e e) proceeds from the sale or liquidation of all or any part of an Investment;
Art.14.1.f f) payments arising out of the settlement of a dispute;
Art.14.1.g g) payments of compensation pursuant to Articles 12 and 13.
Art.14.2 2) Transfers under paragraph 1) shall be effected without delay and except in case of a Return in kind) in a Freely Convertible Currency.
Art.14.3 3) Transfers shall be made at the market rate of exchange existing on the date of transfer with respect to spot transactions in the currency to be transferred. In the absence of a market for foreign exchange, the rate to be used will be the most recent rate applied to inward investments or the most recent exchange rate for conversion of currencies into Special Drawing Rights, whichever is more favourable to the Investor.
Art.14.4 4) Notwithstanding paragraphs 1) to 3), a Contracting Party may protect the rights of creditors, or ensure compliance with laws on the issuing, trading and dealing in securities and the satisfaction of judgements in civil, administrative and criminal adjudicatory proceedings, through the equitable, non-discriminatory, and good faith application of its laws and regulations.
Art.14.5 5) Notwithstanding paragraph 2), Contracting Parties which are states that were constituent parts of the former Union of Soviet Socialist Republics may provide in agreements concluded between them that transfers of payments shall be made in the currencies of such Contracting Parties, provided that such agreements do not treat Investments in their Areas of Investors of other Contracting Parties less favourably than either Investments of Investors of the Contracting Parties which have entered into such agreements or Investments of Investors of any third state.
Art.14.6 6) Notwithstanding subparagraph 1)b), a Contracting Party may restrict the transfer of a Return in kind in circumstances where the Contracting Party is permitted under Article 292)a) or the GATT and Related Instruments to restrict or prohibit the exportation or the sale for export of the product constituting the Return in kind; provided that a Contracting Party shall permit transfers of Returns in kind to be effected as authorized or specified in an investment agreement, investment authorization, or other written agreement between the Contracting Party and either an Investor of another Contracting Party or its Investment.
Art.15 Article 15
Art.15.1 1) If a Contracting Party or its designated agency hereinafter referred to as the "Indemnifying Party") makes a payment under an indemnity or guarantee given in respect of an Investment of an Investor hereinafter referred to as the "Party Indemnified") in the Area of another Contracting Party hereinafter referred to as the "Host Party"), the Host Party shall recognize:
Art.15.1.a a) the assignment to the Indemnifying Party of all the rights and claims in respect of such Investment; and
Art.15.1.b b) the right of the Indemnifying Party to exercise all such rights and enforce such claims by virtue of subrogation.
Art.15.2 2) The Indemnifying Party shall be entitled in all circumstances to:
Art.15.2.a a) the same treatment in respect of the rights and claims acquired by it by virtue of the assignment referred to in paragraph 1); and
Art.15.2.b b) the same payments due pursuant to those rights and claims,
Art.15.2.a as the Party Indemnified was entitled to receive by virtue of this Treaty in respect of the Investment concerned.
Art.15.3 3) In any proceeding under Article 26, a Contracting Party shall not assert as a defence, counterclaim, 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 insurance or guarantee contract.
Art.16 Article 16
Art.16.0x Where two or more Contracting Parties have entered into a prior international agreement, or enter into a subsequent international agreement, whose terms in either case concern the subject matter of Part III or V of this Treaty:
Art.16.1 1) nothing in Part III or V of this Treaty shall be construed to derogate from any provision of such terms of the other agreement or from any right to dispute resolution with respect thereto under that agreement; and
Art.16.2 2) nothing in such terms of the other agreement shall be construed to derogate from any provision of Part III or V of this Treaty or from any right to dispute resolution with respect thereto under this Treaty,
Art.16.3x where any such provision is more favourable to the Investor or Investment.
Art.17 Article 17
Art.17.0x Each Contracting Party reserves the right to deny the advantages of this Part to:
Art.17.1 1) a legal entity if citizens or nationals of a third state own or control such entity and if that entity has no substantial business activities in the Area of the Contracting Party in which it is organized; or
Art.17.2 2) an Investment, if the denying Contracting Party establishes that such Investment is an Investment of an Investor of a third state with or as to which the denying Contracting Party:
Art.17.2.a a) does not maintain a diplomatic relationship; or
Art.17.2.b b) adopts or maintains measures that:
Art.17.2.b.i i) prohibit transactions with Investors of that state; or
Art.17.2.b.ii ii) would be violated or circumvented if the benefits of this Part were accorded to Investors of that state or to their Investments.
Sect.4 PART IV
Art.18 Article 18
Art.18.1 1) The Contracting Parties recognize state sovereignty and sovereign rights over energy resources. They reaffirm that these must be exercised in accordance with and subject to the rules of international law.
Art.18.2 2) Without affecting the objectives of promoting access to energy resources, and exploration and development thereof on a commercial basis, the Treaty shall in no way prejudice the rules in Contracting Parties governing the system of property ownership of energy resources.
Art.18.3 3) Each state continues to hold in particular the rights to decide the geographical areas within its Area to be made available for exploration and development of its energy resources, the optimalization of their recovery and the rate at which they may be depleted or otherwise exploited, to specify and enjoy any taxes, royalties or other financial payments payable by virtue of such exploration and exploitation, and to regulate the environmental and safety aspects of such exploration, development and reclamation within its Area, and to participate in such exploration and exploitation, inter alia , through direct participation by the government or through state enterprises.
Art.18.4 4) The Contracting Parties undertake to facilitate access to energy resources, inter alia , by allocating in a non-discriminatory manner on the basis of published criteria authorizations, licences, concessions and contracts to prospect and explore for or to exploit or extract energy resources.
Art.19 Article 19
Art.19.1 1) In pursuit of sustainable development and taking into account its obligations under those international agreements concerning the environment to which it is party, each Contracting Party shall strive to minimize in an economically efficient manner harmful Environmental Impacts occurring either within or outside its Area from all operations within the Energy Cycle in its Area, taking proper account of safety. In doing so each Contracting Party shall act in a Cost-Effective manner. In its policies and actions each Contracting Party shall strive to take precautionary measures to prevent or minimize environmental degradation. The Contracting Parties agree that the polluter in the Areas of Contracting Parties, should, in principle, bear the cost of pollution, including transboundary pollution, with due regard to the public interest and without distorting Investment in the Energy Cycle or international trade. Contracting Parties shall accordingly:
Art.19.1.a a) take account of environmental considerations throughout the formulation and implementation of their energy policies;
Art.19.1.b b) promote market-oriented price formation and a fuller reflection of environmental costs and benefits throughout the Energy Cycle;
Art.19.1.c c) having regard to Article 344), encourage cooperation in the attainment of the environmental objectives of the Charter and cooperation in the field of international environmental standards for the Energy Cycle, taking into account differences in adverse effects and abatement costs between Contracting Parties;
Art.19.1.d d) have particular regard to Improving Energy Efficiency, to developing and using renewable energy sources, to promoting the use of cleaner fuels and to employing technologies and technological means that reduce pollution;
Art.19.1.e e) promote the collection and sharing among Contracting Parties of information on environmentally sound and economically efficient energy policies and Cost-Effective practices and technologies;
Art.19.1.f f) promote public awareness of the Environmental Impacts of energy systems, of the scope for the prevention or abatement of their adverse Environmental Impacts, and of the costs associated with various prevention or abatement measures;
Art.19.1.g g) promote and cooperate in the research, development and application of energy efficient and environmentally sound technologies, practices and processes which will minimize harmful Environmental Impacts of all aspects of the Energy Cycle in an economically efficient manner.
Art.19.1.h h) encourage favourable conditions for the transfer and dissemination of such technologies consistent with the adequate and effective protection of Intellectual Property rights;
Art.19.1.i i) promote the transparent assessment at an early stage and prior to decision, and subsequent monitoring, of Environmental Impacts of environmentally significant energy investment projects;
Art.19.1.j j) promote international awareness and information exchange on Contracting Parties' relevant environmental programmes and standards and on the implementation of those programmes and standards;
Art.19.1.k k) participate, upon request, and within their available resources, in the development and implementation of appropriate environmental programmes in the Contracting Parties.
Art.19.2 2) At the request of one or more Contracting Parties, disputes concerning the application or interpretation of provisions of this Article shall, to the extent that arrangements for the consideration of such disputes do not exist in other appropriate international fora, be reviewed by the Charter Conference aiming at a solution.
Art.19.3 3) For the purposes of this Article:
Art.19.3.a a) "Energy Cycle" means the entire energy chain including activities related to prospecting for, exploration, production, conversion, storage, transport, distribution and consumption of the various forms of energy, and the treatment and disposal of wastes, as well as the decommissioning, cessation or closure of these activities, minimizing harmful Environmental Impacts;
Art.19.3.b b) "Environmental Impact" means any effect caused by a given activity on the environment, including human health and safety, flora, fauna, soil, air, water, climate, landscape and historical monuments or other physical structures or the interactions among these factors; it also includes effects on cultural heritage or socio-ecomomic conditions resulting from alterations to those factors;
Art.19.3.c c) "Improving Energy Efficiency" means acting to maintain the same unit of output of a good or service) without reducing the quality or performance of the output, while reducing the amount of energy required to produce that output;
Art.19.3.d d) "Cost-Effective" means to achieve a defined objective at the lowest cost or to achieve the greatest benefit at a given cost.
Art.20 Article 20
Art.20.1 1) Laws, regulations, judicial decisions and administrative rulings of general application which affect trade in Energy Materials and Products are, in accordance with Article 292)a), among the measures subject to the transparency disciplines of the GATT and relevant Related Instruments.
Art.20.2 2) Laws, regulations, judicial decisions and administrative rulings of general application made effective by any Contracting Party, and agreements in force between Contracting Parties, which affect other matters covered by this Treaty shall also be published promptly in such a manner as to enable Contracting Parties and Investors to become acquainted with them. The provisions of this paragraph shall not require any Contracting Party to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of any Investor.
Art.20.3 3) Each Contracting Party shall designate one or more enquiry points to which requests for information about the abovementioned laws, regulations, judicial decisions and administrative rulings may be addressed and shall communicate promptly such designation to the Secretariat which shall make it available on request.
Art.21 Article 21
Art.21.1 1) Except as otherwise provided in this Article, nothing in this Treaty shall create rights or impose obligations with respect to Taxation Measures of the Contracting Parties. In the event of any inconsistency between this Article and any other provision of the Treaty, this Article shall prevail to the extent of the inconsistency.
Art.21.2 2) Article 73) shall apply to Taxation Measures other than those on income or on capital, except that such provision shall not apply to:
Art.21.2.a a) an advantage accorded by a Contracting Party pursuant to the tax provisions of any convention, agreement or arrangement described in subparagraph 7)a)ii); or
Art.21.2.b b) any Taxation Measure aimed at ensuring the effective collection of taxes, except where the measure of a Contracting Party arbitrarily discriminates against Energy Materials and Products originating in, or destined for the Area of another Contracting Party or arbitrarily restricts benefits accorded under Article 73).
Art.21.3 3) Article 102) and 7) shall apply to Taxation Measures of the Contracting Parties other than those on income or on capital, except that such provisions shall not apply to:
Art.21.3.a a) impose most favoured nation obligations with respect to advantages accorded by a Contracting Party pursuant to the tax provisions of any convention, agreement or arrangement described in subparagraph 7)a)ii) or resulting from membership of any Regional Economic Integration Organization; or
Art.21.3.b b) any Taxation Measure aimed at ensuring the effective collection of taxes, except where the measure arbitrarily discriminates against an Investor of another Contracting Party or arbitrarily restricts benefits accorded under the Investment provisions of this Treaty.
Art.21.4 4) Article 292) to 6) shall apply to Taxation Measures other than those on income or on capital.
Art.21.5.a 5) a) Article 13 shall apply to taxes.
Art.21.5.b b) Whenever an issue arises under Article 13, to the extent it pertains to whether a tax constitutes an expropriation or whether a tax alleged to constitute an expropriation is discriminatory, the following provisions shall apply:
Art.21.5.b.i i) The Investor of the Contracting Party alleging expropriation shall refer the issue of whether the tax is an expropriation or whether the tax is discriminatory to the relevant Competent Tax Authority. Failing such referral by the Investor or the Contracting Party, bodies called upon to settle disputes pursuant to Article 262)c) or 272) shall make a referral to the relevant Competent Tax Authorities;
Art.21.5.b.ii ii) The Competent Tax Authorities shall, within a period of six months of such referral, strive to resolve the issues so referred. Where non-discrimination issues are concerned, the Competent Tax Authorities shall apply the non-discrimination provisions of the relevant tax convention or, if there is no non-discrimination provision in the relevant tax convention applicable to the tax or no such tax convention is in force between the Contracting Parties concerned, they shall apply the non-discrimination principles under the Model Tax Convention on Income and Capital of the Organisation for Economic Cooperation and Development;
Art.21.5.b.iii iii) Bodies called upon to settle disputes pursuant to Article 262)c) or 272) may take into account any conclusions arrived at by the Competent Tax Authorities regarding whether the tax is an expropriation. Such bodies shall take into account any conclusions arrived at within the six-month period prescribed in subparagraph b)ii) by the Competent Tax Authorities regarding whether the tax is discriminatory. Such bodies may also take into account any conclusions arrived at by the Competent Tax Authorities after the expiry of the six-month period;
Art.21.5.b.iv iv) Under no circumstances shall involvement of the Competent Tax Authorities, beyond the end of the six-month period referred to in subparagraph b)ii), lead to a delay of proceedings under Articles 26 and 27.
Art.21.6 6) For the avoidance of doubt, Article 14 shall not limit the right of a Contracting Party to impose or collect a tax by withholding or other means.
Art.21.7 7) For the purposes of this Article:
Art.21.7.a a) The term "Taxation Measure" includes:
Art.21.7.a.i i) any provision relating to taxes of the domestic law of the Contracting Party or of a political subdivision thereof or a local authority therein; and
Art.21.7.a.ii ii) any provision relating to taxes of any convention for the avoidance of double taxation or of any other international agreement or arrangement by which the Contracting Party is bound.
Art.21.7.b b) There shall be regarded as taxes on income or on capital all taxes imposed on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates, inheritances and gifts, or substantially similar taxes, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
Art.21.7.c c) A "Competent Tax Authority " means the competent authority pursuant to a double taxation agreement in force between the Contracting Parties or, when no such agreement is in force, the minister or ministry responsible for taxes or their authorized representatives.
Art.21.7.d d) For the avoidance of doubt, the terms "tax provisions" and "taxes" do not include customs duties.
Art.22 Article 22
Art.22.1 1) Each Contracting Party shall ensure that any state enterprise which it maintains or establishes shall conduct its activities in relation to the sale or provision of goods and services in its Area in a manner consistent with the Contracting Party's obligations under Part III of this Treaty.
Art.22.2 2) No Contracting Party shall encourage or require such a state enterprise to conduct its activities in its Area in a manner inconsistent with the Contracting Party's obligations under other provisions of this Treaty.
Art.22.3 3) Each Contracting Party shall ensure that if it establishes or maintains an entity and entrusts the entity with regulatory, administrative or other governmental authority, such entity shall exercise that authority in a manner consistent with the Contracting Party's obligations under this Treaty.
Art.22.4 4) No Contracting Party shall encourage or require any entity to which it grants exclusive or special privileges to conduct its activities in its Area in manner inconsistent with the Contracting Party's obligations under this Treaty.
Art.22.5 5) For the purposes of this Article, "entity" includes any enterprise, agency or other organization or individual.
Art.23 Article 23
Art.23.1 1) Each Contracting Party is fully responsible under this Treaty for the observance of all provisions of the Treaty, and shall take such reasonable measures as may be available to it to ensure such observance by regional and local governments and authorities within its Area.
Art.23.2 2) The dispute settlement provisions in Parts II, IV and V of this Treaty may be invoked in respect of measures affecting the observance of the Treaty by a Contracting Party which have been taken by regional or local governments or authorities within the Area of the Contracting Party.
Art.24 Article 24
Art.24.1 1) This Article shall not apply to Articles 12, 13 and 29.
Art.24.2 2) The provisions of this Treaty other than
Art.24.2.a a) those referred to in paragraph 1; and
Art.24.2.b b) with respect to subparagraph i), Part III of the Treaty
Art.24.2.cx shall not preclude any Contracting Party from adopting or enforcing any measure
Art.24.2.cx.i i) necessary to protect human, animal or plant life or health;
Art.24.2.cx.ii ii) essential to the acquisition or distribution of Energy Materials and Products in conditions of short supply arising from causes outside the control of that Contracting Party, provided that any such measure shall be consistent with the principles that
Art.24.2.cx.ii.A A) all other Contracting Parties are entitled to an equitable share of the international supply of such Energy Materials and Products; and
Art.24.2.cx.ii.B B) any such measure that is inconsistent with this Treaty shall be discontinued as soon as the conditions giving rise to it have ceased to exist; or
Art.24.2.cx.iii iii) designed to benefit Investors who are aboriginal people or socially or economically disadvantaged individuals or groups or their Investments and notified to the Secretariat as such, provided that such measure
Art.24.2.cx.iii.A A) has no significant impact on that Contracting Party's economy; and
Art.24.2.cx.iii.B B) does not discriminate between Investors of any other Contracting Party and Investors of that Contracting Party not included among those for whom the measure is intended,
Art.24.2.dx provided that no such measure shall constitute a disguised restriction on Economic Activity in the Energy Sector, or arbitrary or unjustifiable discrimination between Contracting Parties or between Investors or other interested persons of Contracting Parties. Such measures shall be duly motivated and shall not nullify or impair any benefit one or more other Contracting Parties may reasonably expect under this Treaty to an extent greater than is strictly necessary to the stated end.
Art.24.3 3) The provisions of this Treaty other than those referred to in paragraph 1) shall not be construed to prevent any Contracting Party from taking any measure which it considers necessary:
Art.24.3.a a) for the protection of its essential security interests including those
Art.24.3.a.i i) relating to the supply of Energy Materials and Products to a military establishment; or
Art.24.3.a.ii ii) taken in time of war, armed conflict or other emergency in international relations;
Art.24.3.b b) relating to the implementation of national policies respecting the non-proliferation of nuclear weapons or other nuclear explosive devices or needed to fulfil its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons, the Nuclear Suppliers Guidelines, and other international nuclear non-proliferation obligations or understandings; or
Art.24.3.c c) for the maintenance of public order.
Art.24.3.dx Such measure shall not constitute a disguised restriction on Transit.
Art.24.4 4) The provisions of this Treaty which accord most favoured nation treatment shall not oblige any Contracting Party to extend to the Investors of any other Contracting Party any preferential treatment:
Art.24.4.a a) resulting from its membership of a free-trade area or customs union; or
Art.24.4.b b) which is accorded by a bilateral or multilateral agreement concerning economic cooperation between states that were constituent parts of the former Union of Soviet Socialist Republics pending the establishment of their mutual economic relations on a definitive basis.
Art.25 Article 25
Art.25.1 1) The provisions of this Treaty shall not be so construed as to oblige a Contracting Party which is party to an Economic Integration Agreement hereinafter referred to as "EIA") to extend, by means of most favoured nation treatment, to another Contracting Party which is not a party to that EIA, any preferential treatment applicable between the parties to that EIA as a result of their being parties thereto.
Art.25.2 2) For the purposes of paragraph 1), "EIA" means an agreement substantially liberalizing, inter alia, trade and investment, by providing for the absence or elimination of substantially all discrimination between or among parties thereto through the elimination of existing discriminatory measures and/or the prohibition of new or more discriminatory measures, either at the entry into force of that agreement or on the basis of a reasonable time frame.
Art.25.3 3) This Article shall not affect the application of the GATT and Related Instruments according to Article 29.
Sect.5 PART V
Art.29 Article 29
Art.29.1 1) The provisions of this Article shall apply to trade in Energy Materials and Products while any Contracting Party is not a party to the GATT and Related Instruments.
Art.29.2.a 2) a) Trade in Energy Materials and Products between Contracting Parties at least one of which is not a party to the GATT or a relevant Related Instrument shall be governed, subject to subparagraphs b) and c) and to the exceptions and rules provided for in Annex G, by the provisions of GATT 1947 and Related Instruments, as applied on 1 March 1994 and practised with regard to Energy Materials and Products by parties to GATT 1947 among themselves, as if all Contracting Parties were parties to GATT 1947 and Related Instruments.
Art.29.2.b b) Such trade of a Contracting Party which is a state that was a constituent part of the former Union of Soviet Socialist Republics may instead be governed, subject to the provisions of Annex TFU, by an agreement between two or more such states, until 1 December 1999 or the admission of that Contracting Party to the GATT, whichever is the earlier.
Art.29.2.c c) As concerns trade between any two parties to the GATT, subparagraph a) shall not apply if either of those parties is not a party to GATT 1947.
Art.29.3 3) Each signatory to this Treaty, and each state or Regional Economic Integration Organization acceding to this Treaty, shall on the date of its signature or of its deposit of its instrument of accession provide to the Secretariat a list of all tariff rates and other charges levied on Energy Materials and Products at the time of importation or exportation, notifying the level of such rates and charges applied on such date of signature or deposit. Any changes to such rates or other charges shall be notified to the Secretariat, which shall inform the Contracting Parties of such changes.
Art.29.4 4) Each Contracting Party shall endeavour not to increase any tariff rate or other charge levied at the time of importation or exportation:
Art.29.4.a a) in the case of the importation of Energy Materials and Products described in Part I of the Schedule relating to the Contracting Party referred to in article II of the GATT, above the level set forth in that Schedule, if the Contracting Party is a party to the GATT;
Art.29.4.b b) in the case of the exportation of Energy Materials and Products, and that of their importation if the Contracting Party is not a party to the GATT, above the level most recently notified to the Secretariat, except as permitted by the provisions made applicable by subparagraph 2)a).
Art.29.5 5) A Contracting Party may increase such tariff rate or other charge above the level referred to in paragraph 4) only if:
Art.29.5.a a) in the case of a rate or other charge levied at the time of importation, such action is not inconsistent with the applicable provisions of the GATT other than those provisions of GATT 1947 and Related Instruments listed in Annex G and the corresponding provisions of GATT 1994 and Related Instruments; or
Art.29.5.b b) it has, to the fullest extent practicable under its legislative procedures, notified the Secretariat of its proposal for such an increase, given other interested Contracting Parties reasonable opportunity for consultation with respect to its proposal, and accorded consideration to any representations from such Contracting Parties.
Art.29.6 6) Signatories undertake to commence negotiations not later than 1 January 1995 with a view to concluding by 1 January 1998, as appropriate in the light of any developments in the world trading system, a text of an amendment to this Treaty which shall, subject to conditions to be laid down therein, commit each Contracting Party not to increase such tariffs or charges beyond the level prescribed under that amendment.
Art.29.7 7) Annex D shall apply to disputes regarding compliance with provisions applicable to trade under this Article and, unless both Contracting Parties agree otherwise, to disputes regarding compliance with Article 5 between Contracting Parties at least one of which is not a party to the GATT, except that Annex D shall not apply to any dispute between Contracting Parties, the substance of which arises under an agreement that:
Art.29.7.a a) has been notified in accordance with and meets the other requirements of subparagraph 2)b) and Annex TFU; or
Art.29.7.b b) establishes a free-trade area or a customs union as described in article XXIV of the GATT.
Art.32 Article 32
Art.32.1 1) In recognition of the need for time to adapt to the requirements of a market economy, a Contracting Party listed in Annex T may temporarily suspend full compliance with its obligations under one or more of the following provisions of this Treaty, subject to the conditions in paragraphs 3) to 6):
Art.32.1.ax Article 62) and 5)
Art.32.1.bx Article 74)
Art.32.1.cx Article 91)
Art.32.1.dx Article 107) - specific measures
Art.32.1.ex Article 141)d) - related only to transfer of unspent earnings
Art.32.1.fx Article 203)
Art.32.1.gx Article 221) and 3)
Art.32.2 2) Other Contracting Parties shall assist any Contracting Party which has suspended full compliance under paragraph 1) to achieve the conditions under which such suspension can be terminated. This assistance may be given in whatever form the other Contracting Parties consider most effective to respond to the needs notified under subparagraph 4)c) including, where appropriate, through bilateral or multilateral arrangements.
Art.32.3 3) The applicable provisions, the stages towards full implementation of each, the measures to be taken and the date or, exceptionally, contingent event, by which each stage shall be completed and measure taken are listed in Annex T for each Contracting Party claiming transitional arrangements. Each such Contracting Party shall take the measure listed by the date indicated for the relevant provision and stage as set out in Annex T. Contracting Parties which have temporarily suspended full compliance under paragraph (1) undertake to comply fully with the relevant obligations by 1 July 2001. Should a Contracting Party find it necessary, due to exceptional circumstances, to request that the period of such temporary suspension be extended or that any further temporary suspension not previously listed in Annex T be introduced, the decision on a request to amend Annex T shall be made by the Charter Conference.
Art.32.4 4) A Contracting Party which has invoked transitional arrangements shall notify the Secretariat no less often than once every 12 months:
Art.32.4.a a) of the implementation of any measures listed in its Annex T and of its general progress to full compliance;
Art.32.4.b b) of the progress it expects to make during the next 12 months towards full compliance with its obligations, of any problem if foresees and of its proposals for dealing with that problem;
Art.32.4.c c) of the need for technical assistance to facilitate completion of the stages set out in Annex T as necessary for the full implementation of this Treaty, or to deal with any problem notified pursuant to subparagraph b) as well as to promote other necessary market-oriented reforms and modernization of its energy sector;
Art.32.4.d d) of any possible need to make a request of the kind referred to in paragraph 3).
Art.32.5 5) The Secretariat shall:
Art.32.5.a a) circulate to all Contracting Parties the notifications referred to in paragraph 4);
Art.32.5.b b) circulate and actively promote, relying where appropriate on arrangements existing within other international organizations, the matching of needs for and offers of technical assistance referred to in paragraph 2) and subparagraph 4)c);
Art.32.5.c c) circulate to all Contracting Parties at the end of each six month period a summary of any notifications made under subparagraph 4)a) or d).
Art.32.6 6) The Charter Conference shall annually review the progress by Contracting Parties towards implementation of the provisions of this Article and the matching of needs and offers of technical assistance referred to in paragraph 2) and subparagraph 4)c). In the course of that review it may decide to take appropriate action.
Sect.7 PART VII
Art.33 Article 33
Art.33.1 1) The Charter Conference may authorize the negotiation of a number of Energy Charter Protocols or Declarations in order to pursue the objectives and principles of the Charter.
Art.33.2 2) Any signatory to the Charter may participate in such negotiation.
Art.33.3 3) A state or Regional Economic Integration Organization shall not become a party to a Protocol or Declaration unless it is, or becomes at the same time, a signatory to the Charter and a Contracting Party to this Treaty.
Art.33.4 4) Subject to paragraph 3) and subparagraph 6)a), final provisions applying to a Protocol shall be defined in that Protocol.
Art.33.5 5) A Protocol shall apply only to the Contracting Parties which consent to be bound by it, and shall not derogate from the rights and obligations of those Contracting Parties not party to the Protocol.
Art.33.6.a 6) a) A Protocol may assign duties to the Charter Conference and functions to the Secretariat, provided that no such assignment may be made by an amendment to a Protocol unless that amendment is approved by the Charter Conference, whose approval shall not be subject to any provisions of the Protocol which are authorized by subparagraph b).
Art.33.6.b b) A Protocol which provides for decisions thereunder to be taken by the Charter Conference may, subject to subparagraph a), provide with respect to such decisions:
Art.33.6.b.i i) for voting rules other than those contained in Article 36;
Art.33.6.b.ii ii) that only parties to the Protocol shall be considered to be Contracting Parties for the purposes of Article 36 or eligible to vote under the rules provided for in the Protocol.
Art.36 Article 36
Art.36.1 1) Unanimity of the Contracting Parties Present and Voting at the meeting of the Charter Conference where such matters fall to be decided shall be required for decisions by the Charter Conference to:
Art.36.1.a a) adopt amendments to this Treaty other than amendments to Articles 34 and 35 and Annex T;
Art.36.1.b b) approve accessions to this Treaty under Article 41 by states or Regional Economic Integration Organizations which were not signatories to the Charter as of 16 June 1995;
Art.36.1.c c) authorize the negotiation of and approve or adopt the text of association agreements;
Art.36.1.d d) approve modifications to Annexes EM, NI, G and B;
Art.36.1.e e) approve technical changes to the Annexes to this Treaty; and
Art.36.1.f f) approve the Secretary-General's nominations of panelists under Annex D, paragraph 7).
Art.36.1.gx The Contracting Parties shall make every effort to reach agreement by consensus on any other matter requiring their decision under this Treaty. If agreement cannot be reached by consensus, paragraphs 2) to 5) shall apply.
Art.36.2 2) Decisions on budgetary matters referred to in Article 343)e) shall be taken by a qualified majority of Contracting Parties whose assessed contributions as specified in Annex B represent, in combination, at least three-fourths of the total assessed contributions specified therein.
Art.36.3 3) Decisions on matters referred to in Article 347) shall be taken by a three-fourths majority of the Contracting Parties.
Art.36.4 4) Except in cases specified in subparagraphs 1)a) to f), paragraphs 2) and 3), and subject to paragraph 6), decisions provided for in this Treaty shall be taken by a three-fourth majority of the Contracting Parties Present and Voting at the meeting of the Charter Conference at which such matters fall to be decided.
Art.36.5 5) For purposes of this Article, "Contracting Parties Present and Voting" means Contracting Parties present and casting affirmative or negative votes, provided that the Charter Conference may decide upon rules of procedure to enable such decisions to be taken by Contracting Parties by correspondence.
Art.36.6 6) Except as provided in paragraph 2), no decision referred to in this Article shall be valid unless it has the support of a simple majority of the Contracting Parties.
Art.36.7 7) A Regional Economic Integration Organization shall, when voting, have a number of votes equal to the number of its member states which are Contracting Parties to this Treaty; provided that such an Organization shall not exercise its right to vote if its member states exercise theirs, and vice versa.
Art.36.8 8) In the event of persistent arrears in a Contracting Party's discharge of financial obligations under this Treaty, the Charter Conference may suspend that Contracting Party's voting rights in whole or in part.
Art.40 Article 40
Art.40.1 1) Any state or Regional Economic Integration Organization may at the time of signature, ratification, acceptance, approval or accession, by a declaration deposited with the Depositary, declare that the Treaty shall be binding upon it with respect to all the territories for the international relations of which it is responsible, or to one or more of them. Such declaration shall take effect at the time the Treaty enters into force for that Contracting Party.
Art.40.2 2) Any Contracting Party may at a later date, by a declaration deposited with the Depositary, bind itself under this Treaty with respect to other territory specified in the declaration. In respect of such territory the Treaty shall enter into force on the ninetieth day following the receipt by the Depositary of such declaration.
Art.40.3 3) Any declaration made under the two preceding paragraphs may, in respect of any territory specified in such declaration, be withdrawn by a notification to the Depositary. The withdrawal shall, subject to the applicability of Article 473), become effective upon the expiry of one year after the date of receipt of such notification by the Depositary.
Art.40.4 4) The definition of "Area" in Article 110) shall be construed having regard to any declaration deposited under this Article.
Art.43 Article 43
Art.43.1 1) The Charter Conference may authorize the negotiation of association agreements with states or Regional Economic Integration Organizations, or with international organizations, in order to pursue the objectives and principles of the Charter and the provisions of this Treaty or one or more Protocols.
Art.43.2 2) The relationship established with and the rights enjoyed and obligations incurred by an associating state, Regional Economic Integration Organization, or international organization shall be appropriate to the particular circumstances of the association, and in each case shall be set out in the association agreement.
Art.45 Article 45
Art.45.1 1) Each signatory agrees to apply this Treaty provisionally pending its entry into force for such signatory in accordance with Article 44, to the extent that such provisional application is not inconsistent with its constitution, laws or regulations.
Art.45.2.a 2) a) Notwithstanding paragraph 1) any signatory may, when signing, deliver to the Depositary a declaration that it is not able to accept provisional application. The obligation contained in paragraph 1) shall not apply to a signatory making such a declaration. Any such signatory may at any time withdraw that declaration by written notification to the Depositary.
Art.45.2.b b) Neither a signatory which makes a declaration in accordance with subparagraph a) nor Investors of that signatory may claim the benefits of provisional application under paragraph 1).
Art.45.2.c c) Notwithstanding subparagraph a), any signatory making a declaration referred to in subparagraph a) shall apply Part VII provisionally pending the entry into force of the Treaty for such signatory in accordance with Article 44, to the extent that such provisional application is not inconsistent with its laws or regulations.
Art.45.3.a 3) a) Any signatory may terminate its provisional application of this Treaty by written notification to the Depositary of its intention not to become a Contracting Party to the Treaty. Termination of provisional application for any signatory shall take effect upon the expiration of 60 days from the date on which such signatory's written notification is received by the Depositary.
Art.45.3.b b) In the event that a signatory terminates provisional application under subparagraph a), the obligation of the signatory under paragraph 1) to apply Parts III and V with respect to any Investments made in its Area during such provisional application by Investors of other signatories shall nevertheless remain in effect with respect to those Investments for twenty years following the effective date of termination, except as otherwise provided in subparagraph c).
Art.45.3.c c) Subparagraph b) shall not apply to any signatory listed in Annex PA. A signatory shall be removed from the list in Annex PA effective upon delivery to the Depositary of its request therefor.
Art.45.4 4) Pending the entry into force of this Treaty the signatories shall meet periodically in the provisional Charter Conference, the first meeting of which shall be convened by the provisional Secretariat referred to in paragraph 5) not later than 180 days after the opening date for signature of the Treaty as specified in Article 38.
Art.45.5 5) The functions of the Secretariat shall be carried out on an interim basis by a provisional Secretariat until the entry into force of this Treaty pursuant to Article 44 and the establishment of a Secretariat.
Art.45.6 6) The signatories shall, in accordance with and subject to the provisions of paragraph 1) or subparagraph 2)c) as appropriate, contribute to the costs of the provisional Secretariat as if the signatories were Contracting Parties under Article 373). Any modifications made to Annex B by the signatories shall terminate upon the entry into force of this Treaty.
Art.45.7 7) A state or Regional Economic Integration Organization which, prior to this Treaty's entry into force, accedes to the Treaty in accordance with Article 41 shall, pending the Treaty's entry into force, have the rights and assume the obligations of a signatory under this Article.