A. TITEL

Verdrag tussen het Koninkrijk der Nederlanden en Bosnië-Herzegowina inzake de bevordering en de wederzijdse bescherming van investeringen, met Protocol;

Sarajevo, 13 mei 1998

B. TEKST

Agreement on encouragement and reciprocal protection of investment between the Kingdom of the Netherlands and Bosnia and Herzegovina

The Kingdom of the Netherlands,

and

Bosnia and Herzegovina

hereinafter referred to as the Contracting Parties,

Desiring to strengthen their traditional ties of friendship and to extend and intensify the economic relations between them particularly with respect to investments by the nationals of one Contracting Party in the territory of the other Contracting Party,

Recognizing that agreement upon the treatment to be accorded to such investments will stimulate the flow of capital and technology and the economic development of the Contracting Parties and that fair and equitable treatment of investment is desirable,

Have agreed as follows:

Article 1

For the purposes of this Agreement:

  • a) the term “investments" means every kind of asset and more particularly, though not exclusively:

    • (i) movable and immovable property as well as any other rights in remin respect of every kind of asset;

    • (ii) rights derived from shares, bonds and other kinds of interests in companies and joint ventures;

    • (iii) claims to money, to other assets or to any performance having an economic value;

    • (iv) rights in the field of intellectual property, technical processes, goodwill and know-how;

    • (v) rights granted under public law or under contract, including rights to prospect, explore, extract and win natural resources.

  • b) the term “nationals" shall comprise with regard to either Contracting Party:

    • (i) natural persons having the nationality of that Contracting Party;

    • (ii) legal persons constituted under the law of that Contracting Party;

    • (iii) legal persons not constituted under the law of that Contracting Party but controlled, directly or indirectly, by natural persons as defined in (i) or by legal persons as defined in (ii).

  • c) the term «territory»

    • (i) with respect to Bosnia and Herzegovina means all land territory of Bosnia and Herzegovina, its territorial sea, its bed and subsoil and air space above.

    • (ii) with respect to the Kingdom of the Netherlands includes any area adjacent to the territorial sea which, under the laws of the Kingdom of the Netherlands, and in accordance with international law, is the exclusive economic zone or continental shelf of the Kingdom of the Netherlands, in which it exercises jurisdiction or sovereign rights.

Article 2

Either Contracting Party shall, within the framework of its laws and regulations, promote economic cooperation through the protection in its territory of investments of nationals of the other Contracting Party. Subject to its right to exercise powers conferred by its laws or regulations, each Contracting Party shall admit such investments.

Article 3

1. Each Contracting Party shall ensure fair and equitable treatment of the investments of nationals of the other Contracting Party and shall not impair, by unreasonable or discriminatory measures, the operation, management, maintenance, use, enjoyment or disposal thereof by those nationals. Each Contracting Party shall accord to such investments full physical security and protection.

2. More particularly, each Contracting Party shall accord to such investments treatment which in any case shall not be less favourable than that accorded either to investments of its own nationals or to investments of nationals of any third State, whichever is more favourable to the national concerned.

3. If a Contracting Party has accorded special advantages to nationals of any third State by virtue of agreements establishing customs unions, economic unions, monetary unions or similar institutions, or on the basis of interim agreements leading to such unions or institutions, that Contracting Party shall not be obliged to accord such advantages to nationals of the other Contracting Party.

4. Each Contracting Party shall observe any obligation it may have entered into with regard to investments of nationals of the other Contracting Party.

5. If the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter between the Contracting Parties in addition to the present Agreement contain a regulation, whether general or specific, entitling investments by nationals of the other Contracting Party to a treatment more favourable than is provided for by the present Agreement, such regulation shall to the extent that it is more favourable prevail over the present Agreement.

Article 4

With respect to taxes, fees, charges and to fiscal deductions and exemptions, each Contracting Party shall accord to nationals of the other Contracting Party who are engaged in any economic activity in its territory, treatment not less favourable than that accorded to its own nationals or to those of any third State that are in the same circumstances, whichever is more favourable to the nationals concerned. For this purpose, however, there shall not be taken into account any special fiscal advantages accorded by that Party:

  • a) under an agreement for the avoidance of double taxation; or

  • b) by virtue of its participation in a customs union, economic union or similar institution; or

  • c) on the basis of reciprocity with a third State.

Article 5

The Contracting Parties shall guarantee that payments relating to an investment may be transferred. The transfers shall be made in a freely convertible currency, without restriction or delay. Such transfers include in particular though not exclusively:

  • a) profits, interest, dividends and other current income;

  • b) funds necessary

    • (i) for the acquisition of raw or auxiliary materials, semifabricated or finished products, or

    • (ii) to replace capital assets in order to safeguard the continuity of an investment;

  • c) additional funds necessary for the development of an investment;

  • d) funds in repayment of loans;

  • e) royalties or fees;

  • f) earnings of natural persons;

  • g) the proceeds of sale or liquidation of the investment;

  • h) payments arising under article 7.

Article 6

Neither Contracting Party shall take any measures depriving nationals of the other Contracting Party of their investments or any measures having effect equivalent to nationalisation or expropriation unless the following conditions are complied with:

  • a) the measures are taken in the public interest and under due process of law;

  • b) the measures are not discriminatory or contrary to any undertaking which the Contracting Party which takes such measures may have given:

  • c) the measures are taken against just compensation. Such compensation shall represent the market value of the investments affected, immediately before the measures were taken or the impending measures became public knowledge, whichever is the earliest, shall include interest at a normal commercial rate until the date of payment and shall, in order to be effective for the claimants, be paid and made transferable, without delay, to the country designated by the claimants concerned and in the currency of the country of which the claimants are nationals or in any freely convertible currency accepted by the claimants.

Article 7

Nationals of the one Contracting Party who suffer losses including damages in respect of their investments in the territory of the other Contracting Party owing to war or other armed conflict, revolution, a state of national emergency, revolt, insurrection or riot shall be accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation or other settlement, no less favourable than that which that Contracting Party accords to its own nationals or to nationals of any third State, whichever is more favourable to the nationals concerned.

Article 8

If the investments of a national of the one Contracting Party are insured against non-commercial risks or otherwise give rise to payment of indemnification in respect of such investments under a system established by law, regulation or government contract any subrogation of the insurer or re-insurer or Agency designated by the one Contracting Party to the rights of the said national pursuant to the terms of such insurance or under any other indemnity given shall be recognized by the other Contracting Party.

Article 9

Each Contracting Party hereby consents to submit any legal dispute arising between that Contracting Party and a national of the other Contracting Party concerning an investment of that national in the territory of the former Contracting Party to the International Centre for Settlement of Investment Disputes for settlement by conciliation or arbitration under the Convention on the Settlement of Investment Disputes between States and Nationals of other States opened for signature at Washington on l8 March l965. A legal person which is a national of one Contracting Party and which before such a dispute arises is controlled by nationals of the other Contracting Party shall in accordance with Article 25 2 b) of the Convention for the purpose of the Convention be treated as a national of the other Contracting Party.

Article 10

Either Contracting Party may propose to the other Party that consultations be held on any matter concerning the interpretation or application of the Agreement. The other Party shall accord sympathetic consideration to the proposal and shall afford adequate opportunity for such consultations.

Article 11

1. Any dispute between the Contracting Parties concerning the interpretation or application of the present Agreement, which cannot be settled within three months by means of diplomatic negotiations, shall, unless the Parties have otherwise agreed, be submitted, at the request of either Party, to an arbitral tribunal, composed of three members. Each Party shall appoint one arbitrator and the two arbitrators thus appointed shall together appoint a third arbitrator as their chairman who is not a national of either Party.

2. lf one of the Parties fails to appoint its arbitrator and has not proceeded to do so within two months after an invitation from the other Party to make such appointment, the latter Party may invite the President of the International Court of Justice to make the necessary appointment.

3. If the two arbitrators are unable to reach agreement, in the two months following their appointment, on the choice of the third arbitrator, either Party may invite the President of the International Court of Justice, to make the necessary appointment.

4. If, in the cases provided for in the paragraphs 2 and 3 of this Article, the President of the International Court of Justice is prevented from discharging the said function or is a national of either Contracting Party, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is prevented from discharging the said function or is a national of either Party the most senior member of the Court available who is not a national of either Party shall be invited to make the necessary appointments.

5. The tribunal shall decide on the basis of respect for the law. Before the tribunal decides, it may at any stage of the proceedings propose to the Parties that the dispute be settled amicably. The foregoing provisions shall not prejudice settlement of the disputeex aequo et bono if the Parties so agree.

6. Unless the Parties decide otherwise, the tribunal shall determine its own procedure.

7. Each Contracting Party concerned shall bear the costs of its own member of the tribunal and of its representation in the arbitral proceedings and half of the costs of the Chairman and the remaining costs. The tribunal may, however, in its decision direct that a higher proportion of costs shall be borne by one of the two Contracting Parties.

8. The tribunal shall reach its decision by a majority of votes. Such decision shall be final and binding on the Parties.

Article 12

In accordance with the Charter for the Kingdom of the Netherlands, the present Agreement shall apply to the part of the Kingdom in Europe, the Netherlands Antilles and to Aruba, unless the notification provided for in Article l3, paragraph 1 provides otherwise.

In accordance with the Constitution of Bosnia and Herzegovina, the present Agreement shall apply to the territory of Bosnia and Herzegovina.

Article 13

1. The present Agreement shall enter into force on the first day of the second month following the date on which the Contracting Parties have notified each other in writing that their constitutionally or by law required procedures have been complied with, and shall remain in force for a period of fifteen years.

2. Unless notice of termination has been given by either Contracting Party at least six months before the date of the expiry of its validity, the present Agreement shall be extended tacitly for periods of ten years, whereby each Contracting Party reserves the right to terminate the Agreement upon notice of at least six months before the date of expiry of the current period of validity.

3. In respect of investments made before the date of the termination of the present Agreement the foregoing Articles shall continue to be effective for a further period of fifteen years from that date.

4. Subject to paragraph 2 of this Article, the Kingdom of the Netherlands shall be entitled to terminate the application of the present Agreement separately in respect of any parts of the Kingdom, in accordance with the Charter for the Kingdom of the Netherlands.

5. Upon entry into force of the present Agreement, the Agreement on the Protection of Investments between the Kingdom of the Netherlands and the Socialist Federal Republic of Yugoslavia, signed on l6 February 1976, shall be terminated in the relation between the Kingdom of the Netherlands and Bosnia and Herzegovina, and replaced by the present Agreement.

The present Agreement will only terminate the Agreement on the Protection of Investments between the Kingdom of the Netherlands and the Socialist Federal Republic of Yugoslavia, signed on 16 February 1976, in relation with Bosnia and Herzegovina and those parts of the Kingdom of the Netherlands to which the present Agreement applies in conformity with the notification mentioned in article 13 (1) of this Agreement.

IN WITNESS WHEREOF, the undersigned representatives, duly authorized thereto, have signed the present Agreement.

DONE in duplicate at Sarajevo on l3 May l998, in the English language.

For the Kingdom of the Netherlands,

(sd.) A. VAN DOK-VAN WEELE

For Bosnia and Herzegovina,

(sd.) M. KURTOVIC

Protocol to the Agreement between the Kingdom of the Netherlands and Bosnia and Herzegovina on encouragement and reciprocal protection of investments

On the signing of the Agreement between the Kingdom of the Netherlands and Bosnia and Herzegovina on encouragement and reciprocal protection of investments, the undersigned representatives have agreed on the following provisions which constitute an integral part of the Agreement:

Ad Article 1b) (iii)

Indirect control of an investment means control in fact, determined after an examination of the actual circumstances in each situation. In any such examination, all relevant factors should be considered, including the national's.

  • a) financial interest, including equity interest, in the investment;

  • b) ability to exercise substantial influence over the management and operation of the investment; and

  • c) ability to exercise substantial influence over the selection of members of the board of directors or any other managing body.

    Where there is doubt as to whether a national controls, directly or indirectly, an investment, a national claiming such control has the burden of proof that such control exists.

Ad Article 5

Transfers shall be done in accordance with legislation pertaining thereto. Such legislation shall not, regarding either the requirements or the application thereof, impair or derogate from the free, unrestricted and undelayed transfer guaranteed in this Agreement.

For the Kingdom of the Netherlands,

(sd.) A. VAN DOK-VAN WEELE

For Bosnia and Herzegovina,

(sd.) M. KURTOVIC

D. PARLEMENT

Het Verdrag behoeft ingevolge artikel 91 van de Grondwet de goedkeuring van de Staten-Generaal, alvorens het Koninkrijk aan het Verdrag kan worden gebonden.

G. INWERKINGTREDING

De bepalingen van het Verdrag zullen ingevolge artikel 13, eerste lid, in werking treden op de eerste dag van de tweede maand die volgt op de datum waarop de Verdragsluitende Partijen elkaar schriftelijk hebben medegedeeld dat aan hun grondwettelijke of wettelijke vereiste procedures is voldaan.

J. GEGEVENS

Van het op 18 maart 1965 te Washington tot stand gekomen Verdrag inzake de beslechting van geschillen met betrekking tot investeringen tussen Staten en onderdanen van andere Staten, naar welk Verdrag in artikel 9, van het onderhavige Verdrag wordt verwezen, zijn tekst en vertaling geplaatst in Trb. 1966, 152; zie ook, laatstelijk, Trb. 1994, 126.

Het Internationale Centrum voor Beslechting van Investeringsgeschillen, naar welk Centrum ondermeer in artikel 9 van het onderhavige Verdrag wordt verwezen, is opgericht bij het hierboven genoemde Verdrag van 18 maart 1965.

Van de op 16 februari 1976 te Belgrado tot stand gekomen Overeenkomst tussen het Koninkrijk der Nederlanden en de Socialistische Federatieve Republiek Joegoslavië inzake de bescherming van investeringen, tot vervanging van welke Overeenkomst het onderhavige Verdrag strekt in de verhouding Bosnië-Herzegowina en het Koninkrijk der Nederlanden zijn tekst en vertaling geplaatst in Trb. 1976, 40; zie ook, laatstelijk, Trb. 1997, 278.

Van het op 26 juni 1945 te San Francisco tot stand gekomen Statuut van het Internationaal Gerechtshof, naar welk Hof wordt verwezen in artikel 11 van het Verdrag, is de tekst geplaatst in Trb. 1971, 55 en is de herziene vertaling geplaatst in Trb. 1987, 114; zie ook Trb. 1997, 106.

Uitgegeven de tweede juli 1998

De Minister van Buitenlandse Zaken,

H. A. F. M. O. VAN MIERLO

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