Agreement between the Government of the Arab Republic of Egypt and the Government of the Republic of Tunisia on promotion and protection of investments
The Government of the Arab Republic of Egypt and the Government of the Republic of Tunisia. And hereinafter referred to as (the Contracting Parties)
- Desiring to closer economic relations and intensify cooperation and strengthen the development of the two countries in the framework of the joint higher committee between them.
- Convinced that the protection of investments in virtue of an international agreement would push toward special economic initiatives and support the prosperity of both countries.
- realization the necessity of granting the natural and legal persons of each of the contracting parties, fair and equitable treatment for their investments in the territory of the other Contracting Party.
Article 1. Definitions
According to the concept of this agreement, the term of
A "investments" shall include all sorts of gains formed or recognized in the host country in accordance to the applicable laws. "investments" includes, in particular, and not limited to the following:
1 Movable property, real estate, every other property right and the guarantees related thereto such as mortgages, Franchises, and other mortgages.
2 Values, stocks, shares and corporate bonds.
3 Debt and every paid service as result of a contract.
4 Intellectual property rights and non-material elements relate to commercial assets.
5 Franchises rights granted under a law or contract, including rights relating to extraction, exploitation and searching of natural resources, which is given to the beneficiaries by legal form for a certain period.
B "revenue" on the amounts generated by investment in particular, and not limited to, all profits, interest, dividends on the shares and royalties in accordance with the applicable laws of the host country.
1 For the Arab Republic of Egypt; shall mean natural persons holding the Egyptian nationality, and legal persons established in accordance with the laws in force in the Arab Republic of Egypt.
2 For the Republic of Tunisia; shall mean natural persons holding the Tunisian nationality, and legal persons established in accordance with the laws in force in the Republic of Tunisia.
1 For the Arab Republic of Egypt: it shall mean on territory of the Arab Republic of Egypt. 2 For the Republic of Tunisia: it shall mean on territory of the Republic of Tunisia.
Article 2. Promotion and protection of investments
1 Each of the Contracting Parties shall encourage the nationals of the other Contracting Party to invest capital in its territory,
provides appropriate conditions for these investments, permit the entry of the mentioned capitals and provides the necessary facilities and incentives, while retaining the right of each contracting party to exercise the power assigned to by laws
2 The investments of each parties that are realized in accordance with the conditions of the national legislation of the host country, enjoy a protection, guarantee and fair and equitable treatment.
3 Each Contracting Party shall provide the facilities and grant the necessary permits to enter, exit, residence and work, for the investor and those whose their businesses related permanently or temporarily to investments, such experts, managerial, technicians and workers, in accordance to the applicable laws of the host country.
Article 3. National treatment
1 Each contracting parties in its territory shall not subject to the investments and the revenues of the nationals of the other contracting party, a treatment less privilege than the treatment accorded to the investments and the revenues of its nationals.
2 Each contracting parties in its territory shall not subject to the nationals of the other contracting party, a treatment less privilege than the treatment accorded to its nationals in respect to the disposition, use and utilization of these nationals in their investments in paid or free of charge.
Article 4. Compensation for the losses
In case of the investments of the nationals of one Contracting Party on the territory of the other Contracting Party exposed losses as result of a war or other armed conflict or revolution or national emergency or civil disturbances or incitement or similar condition that occurs on the territory of the contracting party. The latter granted those nationals a treatment not less privilege than the treatment accorded to its nationals in respect to reparations or compensation or any other form of settlement.
Article 5. Expropriation
1 The investments of the nationals of any contracting party shall not be expropriate or nationalize, and shall not be subject to any measure having equivalent result on the territory of the other contracting party, unless the following conditions are met:
A Such measures were taken for the benefit of the public interest and is in accordance with the formulas prescribed by law. B The mentioned measures were taken on non discrimination basis.
C Such measures are accompanied upon prompt, actual and adequate compensation, and freely transferee between the territories of the contracting parties in accordance with the applicable exchange rate systems in both countries.
2 The application of the provisions of the first paragraph of this chapter on the revenues resulted from investment.
Article 6. Transfer of investments and revenues
1 Each of the contracting parties in accordance to its laws and systems, shall, without any delay and with any convertible currency, transfer the:
A Net profit, dividends on stocks, royalty, remuneration under aid title, technical services, interests and the other all current revenues as result of the investment of the nationals of the other contracting party.
B The output from full or partial liquidation of investments carried out by the nationals of the other Contracting Party. C Repayment of loans, which is obtained by the nationals for the nationals of the other Contracting Party.
D Wages of the nationals of the other contracting party that authorized to work in the territory within the framework of the investment.
2 Each Contracting Party shall be committed to grant the transfers referred to in the first paragraph of this chapter, a treatment not less privilege than the treatment accorded to the transfers resulted from investments made by nationals of any third country.
Article 7. Exception
Exception to the provisions of Chapter (3) of this Agreement, the Contracting Party, which has an agreement with the state or several others states on the establishment of a customs union or a free trade area or any other Agreement based on economic cooperation shall enjoy the freedom of granting more favorable treatment to investments done by the state or states that are Parties to the mentioned Agreement or to investments done by the nationals of these states, the contracting party which concluded bilateral agreements with other states shall also enjoy the freedom of granting the investments of nationals of these states more favorable treatment if those bilateral agreements stated for such treatment.
Article 8. Settlement of disputes
1 Disputes arise between the contracting parties regarding the interpretation or application of this Agreement shall be settled as much as possible by diplomatic means.
2 If the dispute cannot be settled by such means, it is displayed by the request of one of the contracting parties to an arbitration tribunal. Each Contracting Party shall also accept to display each dispute with a legal veneer arise between it and one of the nationals of the other Contracting Party regarding an investment established in its territory to the mentioned tribunal.
3 The Arbitration Tribunal is constituted according to each case as follows:
Each of the contracting parties shall appoint a member to the tribunal within two months from the date of delivery of the request for arbitration, and the two members shall choose the third member from the nationals of another state to be appointed as a President to the tribunal after the agreement of the two contracting parties, within two months from the date of nominating the two members.
4 If the needed appointments were not done during the time limits set out in paragraph (3) of this chapter, and in the case of the lack of any other agreement, any of the contracting parties can invite the Arab Investment Guarantee Corporation to make the necessary appointments.
5 The arbitration tribunal shall take decisions by majority vote, and its decisions are considered binding on the contracting parties.
Each contracting party shall bear the expenses related to the member it appoints in the arbitration tribunal as well as expenses related to its representation in the proceedings of the Arbitration Tribunal, both of the Contracting Parties shall bear the expenses related to the President and other expenses , the Tribunal may decide to overload one of the parties the expenses seen appropriate, and such decision shall be binding on the parties, the arbitration tribunal shall determine its own procedures.
1 Nationals of one of the contracting parties may present to the local judicial authorities of the other host contracting party each dispute with a legal veneer arise between them and the other Contracting Party regarding investment established in the territory of the latter, but if a national of the Contracting Parties chose to xxx before an authority, this national shall not after that xxx before any other authority.
Article 9. Contracting parties subrogation for their nationals
If one Contracting Party paid money for the benefit of its nationals under a guarantee was accorded to an investment on the soil (territory) of other Contracting Party, the latter shall recognize for the first party according to the law or contract, and without prejudice to the rights and claims of this Party resulted from Chapter (8) above, to transfer all the rights and claims of its nationals, and the host party shall recognize to the first party of its subrogation for its nationals by all what is related to rights and claims (transferred rights) which entitled to it their use to the extent entitled to its nationals that were subrogated, this also applies on the transfer of payments to the contracting party of interest under the rights transfer in the provisions of chapters 3, 4 and 6 after the necessary amendments.
Article 10. Duration and termination
This agreement remains valid for a period of five years and automatically renewed for the same term, unless one of the parties notified the other party in writing, of its intention to terminate the agreement twelve months prior to the expiration, the agreement remains in force for another five years starting from the date of expiration for the investments establishing during the entry into force of the agreement, taking into account the application of the rules of the international law after
the expiry of this period.
This Agreement shall enter into force after the completion of the procedures approved by the competent authorities in both countries and the exchange of instruments of ratification.
This Agreement was written in Tunisia in two originals in Arabic, both have the same authenticity, on Friday, 9 Jumada I 1410 AH, December 8, 1989.
For the Government of Arab Republic of Egypt Xx. Xxxxx Xxx Mustafa
Minister of Economy and Foreign Trade
For the Government of the Republic of Tunisia Xxxxxxxx Alfatoshi
Minister of Planning and Finance