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Bulgaria Bilateral Investment Treaty
Signed
September 23, 1992; Entered into Force June 2, 1994
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103rd
Congress
1st
Session |
SENATE
|
Treaty
Doc.
103-3 |
TREATY
WITH BULGARIA CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF
INVESTMENT
MESSAGE
FROM THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
THE TREATY
BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF BULGARIA
CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT,
WITH PROTOCOL AND RELATED EXCHANGE OF LETTERS, SIGNED AT WASHINGTON ON
SEPTEMBER 23, 1992
JANUARY-
21, 1993 -Treaty was read the first time and, together with the
accompanying papers, referred to the Committee on Foreign Relations and
ordered to be printed for the use of the Senate
LETTER OF
TRANSMITTAL
___________
THE WHITE HOUSE
January 19, 1993
To the
Senate of the United States
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith the Treaty Between
the United States of America and the Republic of Bulgaria Concerning the
Encouragement and Reciprocal Protection of Investment, wiih Protocol and
related exchange of letters, signed at Washington on September 23, 1992.
I transmit also, for the information of the Senate, the report of the
Department of State with respect to this Treaty.
The Treaty will help to encourage U.S. private
sector involvement in the Bulgarian economy by establishing a favorable
legal framework for U.S. investment in Bulgaria. The Treaty is fully
consistent with U.S. policy toward international investment. A specific
tenet, reflected in this Treaty, is that U.S. investment abroad and
foreign investment in the United States should receive fair, equitable,
and nondiscriminatory treatment. Under this Treaty, the Parties also
agree to international law standards for expropriation and expropriation
compensation; free transfers of funds associated with investments; and
the option of the investor to resolve disputes with the host government
through international arbitration.
I recommend that the Senate consider this Treaty
as soon as possible, and give its advice and consent to ratification of
the Treaty, with Protocol and related exchange of letters, at an early
date.
GEORGE
BUSH.
LETTER OF
SUBMITTAL
DEPARTMENT
OF STATE
Washington,
January 12, 1993.
9300320
The President,
The White House
THE PRESIDENT: I have the honor to submit to you the
Treaty Between the United States of America and the Republic of Bulgaria
Concerning the Encouragement and Reciprocal Protection of Investment,
with Protocol and related exchange of letters, signed at Washington on
September 23, 1992. I recommend that this Treaty, with Protocol and related
exchange of letters, be transmitted to the Senate for its advice and.
consent to ratification.
This marks the fourth bilateral investment treaty
(BIT) or business and economic relations treaty that the United States
has signed with an Eastern European partner. This Treaty will assist Bulgaria
in its transition to a market economy by creating favorable conditions
for U.S. private investment, helping to attract such investment and thus
strengthening the development of the private sector. It is U.S. policy,
however, to advise potential treaty partners that conclusion of a BIT
does not necessarily result in immediate increases in private U.S. investment
flows.
The United States has also signed BITs with Argentina,
Armenia, Bangladesh, Cameroon, the Congo, the Czech and Slovak Federal
Republic, Egypt, Grenada, Haiti, Kazakhstan, Morocco, Panama, Romania,
Russia, Senegal, Sri Lanka, Tunisia, Turkey and Zaire--and a business
and economic relations treaty with Poland, which contains the BIT elements.
The Office of the United States Trade Representative and the Department
of State jointly lead BIT negotiations, with assistance froni the Departments
of Commerce and Treasury.
THE UNITED
STATES-BULGARIA TREATY
The Treaty with Bulgaria satisfies the
principal BIT objectives, which are:
Investments of nationals and companies of
either Party in the territory of the other Party (Investments) receive
the better of national treatment or most-favored-nation (MFN)
treatment, subject to certain specified exceptions, both on
establishment and thereafter;
Investments are guaranteed freedom from
performance requirements, including requirements to use local products
or to export local goods;
Companies which are investments may hire top
managers of their choice, regardless of nationality,
Expropriation can occur only in accordance
with international al law standards: in a nondiscriminatory manner,
for a public purpose; and upon payment of prompt, adequate, and
effective compensation;
Investments are guaranteed the unrestricted
transfer of funds in a freely usable currency, and nationals and
companies of either Party, in investment disputes with the host
government, have access to binding international arbitration, without
first resorting to domestic courts.
Described below are significant provisions in
the U.S.-Bulgaria Treaty which either differ from some of our past
BITs or warrant special mention.
U.S. bilateral investment treaties allow for
sectoral exceptions to national and MFN treatment. The U.S. exceptions
are designed to protect governmental regulatory interests and to
accommodate the derogations from national treatment and, in some
cases, MFN treatment in existing federal law. The U.S. exceptions from
national treatment are air transportation; ocean and coastal shipping,
banking, insurance; government grants; government insurance and loan
programs; energy and power production; custom house brokers; ownership
of real property, ownership and operation of broadcast or common
carrier radio and television stations; ownership of shares in the
Communications Satellite Corporation; the provision of common carrier
telephone and telegraph services; the provision of submarine cable
services; use of land and natural resources; mining on the public
domain maritime services and maritime-related services; and primary
dealership in United States government securities.
The U.S. exceptions from both national and MFN
treatment are ownership of real property, mining on the public domain,
maritime services and maritime-related services and primary dealership
in U.S. government securities. Except for ownership of real property,
MFN exceptions are based on reciprocity provisions in existing federal
laws.
The Bulgarian exceptions to national
treatment are banking, insurance; ownership of real estate; leases of
farm land and forest land, air; rail, and maritime transportation;
governmental subsidies; government insurance and loan programs; energy
and power production; customs house brokers; provision of telephone
and telegraph services; use of land, natural resources, and mining,
ownership and operation of broadcast or common carrier radio and
television stations; and dealership in securities. Bulgaria has not
reserved any sectoral exceptions to MFN treatment.
At the request of Bulgaria, the Treaty
includes a Protocol which excludes from consideration as investments
certain loans that were extended prior to January 1, 1992 to the
Government of Bulgaria for trade finance or balance of payments
reasons, and that are subsequently rescheduled in the London Club.
This Treaty, consistent with the model BIT,
does not oblige a Party to extend to the other Party's investments the
advantages accorded to third-country investments by virtue of binding
obligations that derive from full membership in a free trade area of
customs union. This provision ensures MFN treatment for U.S.
investments in all cases, where Bulgaria's relationship with the third
country falls short of constituting a free trade area or customs
union.
The BIT with Bulgaria contains several
provisions designed to resolve problems that U.S. business
traditionally has faced in the centrally-controlled, non-market
economies of Central and East Europe, and which may continue to impede
U.S. investments during the transition to a market economy.
One such provision (Article II (10)) clarifies
that nationals and companies of either Party receive the better of
national or MFN treatment with respect to an expanded and detailed
list of activities associated with their investments. These include:
access to registrations, licenses, and permits; access to financial
institutions and credit markets; access to their funds held in
financial institutions; the importation and installation of business
equipment; advertising and the conduct of market studies; the
appointment of commercial representatives; direct marketing; access to
public utilities; and access to raw materials. The right to the better
of national or MFN treatment in these activities requires that
Bulgaria grant U.S. nationals and companies treatment no less
favorable than that granted to local enterprises, including those that
remain under state ownership or control.
The Treaty also provides, in a related
exchange of letters, that the Bulgarian Government will designate an
entity to assist U.S. nationals and companies overcome problems
relating to bureaucracy and lack of knowledge. The entity's task will
include providing up-to-date information on business and investment
regulations, collecting and disseminating information regarding
investment projects and financing, and coordinating with Bulgarian
agencies, at all levels, to facilitate U.S. investment.
The other U.S. Government agencies which
negotiated the Treaty join me in recommending that it be transmitted
to the Senate at an early date.
Respectfully submitted,
ARNOLD
KANTER,
Acting
Secretary
TREATY BETWEEN
THE UNITED STATES OF AMERICA AND THE
REPUBLIC OF BULGARIA
CONCERNING THE ENCOURAGEMENT
AND RECIPROCAL PROTECTION OF INVESTMENT
The
United States of America and the Republic of Bulgaria (hereinafter the "Parties");
Desiring to promote greater economic
cooperation between them with respect to investment by nationals and
companies of one Party in the territory of the other Party;
Recognizing that agreement upon the
treatment to be accorded such investment will stimulate the flow of
private capital and the economic development of the Parties;
Agreeing that fair and equitable treatment
of investment is desirable in order to maintain a stable framework for
investment and maximum effective utilization of economic resources;
Recognizing that the development of
economic and business ties can contribute to the well-being of workers
in both Parties and promote respect for internationally recognized
worker rights;
Convinced that a free and open market for
investment offers the best opportunity for raising living standards and
the quality of life for the inhabitants of the Parties; and
Having resolved to conclude a Treaty
concerning the encouragement and reciprocal protection of investment;
Have agreed as follows:
ARTICLE I
1. For the purposes of this Treaty,
(a) "investment"
means every kind of investment in the territory of one Party owned or
controlled directly or indirectly by nationals or companies of the
other Party, such as equity, debt, and service and investment
contracts; and includes:
(i) tangible and intangible
property, including rights such as mortgages, liens and pledges;
(ii) a company or shares of stock or other interests in a company
or interests in the assets thereof;
(iii) a claim to money or a claim to performance having economic
value, and associated with an investment;
(iv) intellectual property which includes, inter alia, rights relating
to:
literary and artistic works,
including sound recordings;
inventions in all fields of
human endeavor;
industrial designs;
semiconductor mask works;
trade secrets, know-how, and
confidential business information;
trademarks, service marks, and
trade names; and
(v) any right conferred by law or contract, and any licenses
and permits pursuant to law;
(b) "company"
of a Party means any kind of corporation, company, association, partnership,
state enterprise, or other organization, legally constituted under
the laws and regulations of a Party or a political subdivision thereof
whether or not organized for pecuniary gain, or privately or governmentally
owned or controlled;
(c) "national" of a Party means a natural person who is
a national of a Party under its applicable law;
(d) "return" means an amount derived from or associated
with an investment, including profit; dividend; interest; capital
gain; royalty payment; management, technical assistance or other fee;
or return in kind;
(e) "associated activities" include the organization, control,
operation, maintenance and disposition of companies, branches, agencies,
offices, factories or other facilities for the conduct of business;
the making, performance and enforcement of contracts; the acquisition,
use, protection and disposition of property of all kinds including
intellectual and industrial property rights; the borrowing of funds;
the purchase, issuance, and sale of equity shares and other securities;
and the purchase of foreign exchange for imports.
(f) "nondiscriminatory" treatment means treatment that is
at least as favorable as the better of national treatment or most-favored-nation
treatment;
(g) "national treatment" means treatment that is at least
as favorable as the most favorable treatment accorded by a Party to
companies or nationals of that Party in like circumstances; and
(h) "most-favored-nation treatment" means treatment that
is at least as favorable as that accorded by a Party to companies
or nationals of third Parties in like circumstances.
2. Each
Party reserves the right to deny to any company the advantages of this
Treaty if nationals of any third country control such company and, in
the case of a company of the other Party, that company has no
substantial business activities in the territory of the other Party or
is controlled by nationals of a third country with which the denying
Party does not maintain normal economic relations.
3. Any alteration of the form in which assets are invested or
reinvested shall not affect their character as an investment.
ARTICLE II
1. Each Party shall permit and treat investment, and activities
associated therewith, on a nondiscriminatory basis, subject to the right
of each Party to make or maintain exceptions falling within one of the
sectors or matters listed in the Annex to this Treaty. Each Party agrees
to notify the other Party before or on the date of entry into force of
this Treaty of all such laws and regulations of which it is aware
concerning the sectors or matters listed in the Annex. Moreover, each
Party agrees to notify the other of any future exception with respect to
the sectors or matters listed in the Annex, and to limit such exceptions
to a minimum. Any future exception by either Party shall not apply to
investment existing in that sector or matter at the time the exception
becomes effective. The treatment accorded pursuant to any exceptions
shall unless specified otherwise in the Annex, be not less favorable
than that accorded in like situations to investments and associated
activities of nationals or companies of any third country.
2. (a) Investment shall at all times be accorded fair and equitable
treatment, shall enjoy full protection and security and shall in no case
be accorded treatment less than that required by international law.
(b) Neither Party shall in any way impair
by arbitrary or discriminatory measures the management, operation,
maintenance, use, enjoyment, acquisition, expansion, or disposal of
investments. For purposes of dispute resolution under Article VI and
VII, a measure may be arbitrary or discriminatory notwithstanding the
fact that a party has had or has exercised the opportunity to review
such measure in the courts or administrative tribunals of a Party.
(c) Each Party shall observe any
obligation it may have entered into with regard to investments.
3. Subject to the laws relating to the entry and sojourn of aliens,
nationals of either Party shall be permitted to enter and to remain in
the territory of the other Party for the purpose of establishing,
developing, administering or advising on the operation of an investment
to which they, or a company of the first Party that employs them, have
committed or are in the process of committing a substantial amount of
capital or other resources.
4. Companies which are legally constituted under the applicable laws or
regulations of one Party, and which are investments, shall be permitted
to engage top managerial personnel of their choice, regardless of
nationality.
5. Neither Party shall impose performance requirements as a condition
of establishment, expansion or maintenance of investments, which require
or enforce commitments to export goods produced, or which specify that
goods or services must be purchased locally, or which impose any other
similar requirements.
6. Each Party shall provide effective means of asserting claims and
enforcing rights with respect to investments, investment agreements, and
investment authorizations.
7. Each Party shall make public all laws, regulations, administrative
practices and procedures, and adjudicatory decisions that pertain to or
affect investments.
8. The treatment accorded by the United States of America to
investments and associated activities of nationals and companies of the
Republic of Bulgaria under the provisions of this Article shall in any
State, Territory or possession of the United States of America be no
less favorable than the treatment accorded therein to investments and
associated activities of nationals of the United States of America
resident in, and companies legally constituted under the laws and
regulations of, other States, Territories or possessions of the United
States of America.
9. The most-favored-nation provisions of this Treaty shall not apply to
advantages accorded by either Party to nationals or companies of any
third country by virtue of:
(a) that Party's binding
obligations that derive from full membership in a free trade area
or customs union; or
(b) that Party's binding obligations under any multilateral international
agreement under the framework of the General Agreement on Tariffs
and Trade that enters into force subsequent to the signature of this
Treaty.
10. The Parties
acknowledge and agree that "associated activities" include
without limitation, such activities as:
(a) the granting of franchises
or rights under licenses;
(b) access to registrations, licenses, permits and other approvals
(which shall in any event be issued expeditiously);
(c) access to financial institutions and credit markets;
(d) access to their funds held in financial institutions;
(e) the importation and installation of equipment necessary for the
normal conduct of business affairs, including, but not limited to,
office equipment and automobiles, and the export of any equipment
and automobiles so imported;
(f) the dissemination of commercial information;
(g) the conduct of market studies;
(h) the appointment of commercial representatives, including agents,
consultants and distributors and their participation in trade fairs
and promotion events;
(i) the marketing of goods and services, including through internal
distribution and marketing systems, as well as by advertising and
direct contact with individuals and companies;
(j) access to public utilities, public services and commercial rental
space at nondiscriminatory prices, if the prices are set or controlled
by the government; and
(k) access to raw materials, inputs and services of all types at nondiscriminatory
prices, if the prices are set or controlled by the government.
ARTICLE III
1. Investments shall not be expropriated or nationalized either
directly or indirectly through measures tantamount in their consequences
to expropriation or nationalization ("expropriation") except:
for a public purpose; in a nondiscriminatory manner; upon payment of
prompt, adequate and effective compensation; and in accordance with due
process of law and the general principles of treatment provided for in
Article II (2). Compensation shall be equivalent to the fair market
value of the expropriated investment immediately before the
expropriatory action was taken or became known, whichever is earlier; be
paid without delay; include interest at a commercially reasonable rate
from the date of expropriation; be fully realizable; and be freely
transferable at the prevailing market rate of exchange on the date of
expropriation.
2. A national or company of either Party that asserts that all or part
of its investment has been expropriated shall have a right to prompt
review by the appropriate judicial or administrative authorities of the
other Party to determine whether any such expropriation has occurred
and, if so, whether such expropriation, and any compensation therefor,
conforms to the principles of international law.
3. Nationals or companies of either Party whose investments suffer
losses in the territory of the other Party owing to war or other armed
conflict, revolution, state of national emergency, insurrection, civil
disturbance or other similar events shall be accorded nondiscriminatory
treatment by such other Party as regards any measures it adopts in
relation to such losses.
ARTICLE IV
1. Each Party shall permit all transfers related to an investment to be
made freely and without delay into and out of its territory. Such
transfers include: (a) returns; (b) compensation pursuant to Article
III; (c) payments arising out of an investment dispute; (d) payments
made under a contract, including amortization of principal and accrued
interest payments made pursuant to a loan agreement; (e) proceeds from
the sale or liquidation of all or any part of an investment; and (f)
additional contributions to capital for the maintenance or development
of an investment.
2. Except as provided in Article III (1), transfers shall be made in a
freely usable currency at the prevailing market rate of exchange on the
date of transfer with respect to spot transactions in the currency to be
transferred.
3. Notwithstanding the provisions of paragraphs 1 and 2, either Party
may maintain laws and regulations (a) requiring reports of currency
transfer; and (b) imposing income taxes by such means as a withholding
tax applicable to dividends or other transfers. Furthermore, either
Party may protect the rights of creditors, or ensure the satisfaction of
judgments in adjudicatory proceedings, through the equitable,
nondiscriminatory and good faith application of its law.
ARTICLE V
The Parties agree to consult promptly, on the request of either, to
resolve any disputes in connection with the Treaty, or to discuss any
matter relating to the interpretation or application of the Treaty.
ARTICLE VI
1. For the purposes of
this Article, an investment dispute is defined as a dispute involving
(a) the interpretation or application of an investment agreement
between a Party and a national or company of the other Party; (b) an
alleged breach of any right conferred or created by this Treaty with
respect to an investment; or (c) the interpretation or application of
any investment authorization granted by a Party's foreign investment
authority to such national or company, provided that the denial of an
investment authorization shall not in itself constitute an investment
dispute unless such denial involves an alleged breach of any right
conferred or created by the Treaty.
2. In the event of an investment dispute between a Party and a
national or company of the other Party, the parties to the dispute
shall initially seek to resolve the dispute by consultation and
negotiation, which may include the use of nonbinding, third party
procedures. Subject to paragraph 3 of this Article, if the dispute
cannot be resolved through consultation and negotiation, the dispute
shall be submitted for settlement in accordance with previously
agreed, applicable disputesettlement procedures; any disputeent
procedures including those relating to expropriation and specified in
the investment agreement shall remain binding and shall be enforceable
in accordance with the terms of the investment agreement, relevant
provisions of domestic laws, and applicable international agreements
regarding enforcement of arbitral awards.
3. (a) At any time after six months from the date on which the
dispute arose, the national or company concerned may choose to consent
in writing to the submission of the dispute for settlement by
conciliation or binding arbitration to the International Centre for
the Settlement of Investment Disputes ("Centre") or to the
Additional Facility of the Centre or pursuant to the Arbitration Rules
of the United Nations Commission on International Trade Law ("UNCITRAL")
or pursuant to the arbitration rules of any arbitral institution
mutually agreed between the parties to the dispute. Once the national
or company concerned has so consented, either party to the dispute may
institute such proceeding provided:
(i) the dispute has not
been submitted by the national or company for resolution in accordance
with any applicable previously agreed disputesettlement procedures;
and
(ii) the national or company concerned has not brought the dispute
before the courts of justice or administrative tribunals or agencies
of competent jurisdiction of the Party that is a party to the dispute.
If the parties disagree
over whether conciliation or binding arbitration is the more appropriate
procedure to be employed, the opinion of the national or company
concerned shall prevail.
(b) Each Party hereby consents to the
submission of an investment dispute for settlement by conciliation or
binding arbitration:
(i) to the Centre, in the
event that the Republic of Bulgaria becomes a party to the Convention
on the Settlement of Investment Disputes Between States and Nationals
of Other States done at Washington, March 18, 1965 ("Convention")
and the Regulations and Rules of the Centre;
(ii) to the Additional Facility of the Centre; and
(iii) to an arbitral tribunal established under the UNCITRAL Rules,
the appointing authority referenced therein to be the Secretary General
of the Centre.
(c)
Conciliation or arbitration of disputes under (b)(i) or (b)(ii) shall be
done applying the provisions of the Convention and the Regulations and
Rules of the Centre, or of the Additional Facility as the case may be.
(d) The place of any arbitration conducted
under this Article shall be a country which is, at the time of the
arbitration, a party to the 1958 United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards.
(e) Each Party undertakes to carry out
without delay the provisions of any award resulting from an arbitration
held in accordance with this Article VI. Further, each Party shall
provide for the enforcement in its territory of such arbitral awards.
4. In any proceeding involving an investment dispute, a Party shall not
assert, as a defense, counterright of setf or otherwise, that the
national or company concerned has received or will receive, pursuant to
an insurance or guarantee contract, indemnification or other
compensation for all or part of its alleged damages.
5. For the purposes of this Article, any company legally constituted
under the applicable laws and regulations of either Party or a political
subdivision thereof but that, immediately before the occurrence of the
event or events giving rise to the dispute, was an investment of
nationals or companies of the other Party, shall, in accordance with
Article 25(2)(b) of the Convention, be treated as a national or company
of such other Party.
ARTICLE VII
1. Any dispute between the Parties concerning the interpretation or
application of the Treaty which is not resolved through consultations or
other diplomatic channels, shall be submitted, upon the request of
either Party, to an arbitral tribunal for binding decision in accordance
with the applicable rules of international law. In the absence of an
agreement by the Parties to the contrary, the arbitration rules of the
United Nations Commission on International Trade Law (UNCITRAL), except
to the extent modified by the Parties, shall govern.
2. Within two months of receipt of a request, each Party shall appoint
an arbitrator. The two arbitrators shall select a third arbitrator as
Chairman, who is a national of a third State. The UNCITRAL Rules for
appointing members of three member panels shall apply mutatis
mutandis to the appointment of the arbitral panel except that
the appointing authority referenced in those rules shall be the
Secretary General of the Permanent Court of Arbitration.
3. Unless otherwise agreed, all submissions shall be made and all
hearings shall be completed within six months of the date of selection
of the third arbitrator, and the Tribunal shall render its decisions
within two months of the date of the final submissions or the date of
the closing of the hearings, whichever is later.
4. Expenses incurred by the Chairman, the other arbitrators, and other
costs of the proceedings shall be paid for equally by the Parties. Each
Party shall bear the costs of its legal representation.
ARTICLE VIII
The provisions of Article VI and VII shall not apply to a dispute
arising (a) under the export credit, guarantee or insurance programs of
the Export-Import Bank of the United States or, (b) under other official
credit, guarantee or insurance arrangements pursuant to which the
Parties have agreed to other means of settling disputes.
ARTICLE IX
This Treaty shall not derogate from:
(a) laws and
regulations, administrative practices or procedures, or
administrative or adjudicatory decisions of either Party;
(b) international legal obligations; or
(c) obligations assumed by either Party, including those contained
in an investment agreement or an investment authorization, that
entitle investments or associated activities to treatment more
favorable than that accorded by this Treaty in like situations.
ARTICLE X
1. This Treaty shall not
preclude the application by either Party of measures necessary for the
maintenance of public order, the fulfillment of its obligations with
respect to the maintenance or restoration of international peace or
security, or the protection of its own essential security interests.
2. This Treaty shall not preclude either Party from prescribing
special formalities in connection with the establishment of
investments, but such formalities shall not impair the substance of
any of the rights set forth in this Treaty.
ARTICLE XI
1. With respect to its tax policies, each Party should strive to accord
fairness and equity in the treatment of investment of nationals and
companies of the other Party.
2. Nevertheless, the provisions of this Treaty, and in particular
Article VI and VII, shall apply to matters of taxation only with respect
to the following:
(a) expropriation,
pursuant to Article III;
(b) transfers, pursuant to Article IV; or
(c) the observance and enforcement of terms of an investment
agreement or authorization as referred to in Article VI(l)(a) or
(b), to the extent they are not subject to the dispute settlement
provisions of a Convention for the avoidance of double taxation
between the two Parties, or have been raised under such settlement
provisions and are not resolved within a reasonable period of time.
ARTICLE XII
This Treaty shall apply to the political subdivisions of the Parties.
ARTICLE XIII
1. This Treaty shall
enter into force thirty days after the date of exchange of instruments
of ratification. It shall remain in force for a period of ten years
and shall continue in force unless terminated in accordance with
paragraph 2 of this Article. It shall apply to investments existing at
the time of entry into force as well as to investments made or
acquired thereafter.
2. Either Party may, by giving one year's written notice to the other
Party, terminate this Treaty at the end of the initial ten year period
or at any time thereafter.
3. With respect to investments made or acquired prior to the date of
termination of this Treaty and to which this Treaty otherwise applies,
the provisions of all of the other Articles of this Treaty shall
thereafter continue to be effective for a further period of ten years
from such date of termination.
4. The Annex and Protocol shall form an integral part of the Treaty.
IN WITNESS WHEREOF, the respective plenipotentiaries have signed this
Treaty.
DONE in duplicate at Washington on the twenty-third day of September,
1992, in the English and Bulgarian languages, both texts being equally
authentic.
FOR THE UNITED STATES
OF AMERICA:
[signature]
|
FOR THE
REPUBLIC OF
BULGARIA:
[signature] |
| |
|
ANNEX
1. The United States reserves the right to make or maintain limited
exceptions to national treatment, as provided in Article II, paragraph
1, in the sectors or matters it has indicated below:
air transportation; ocean and coastal shipping; banking; insurance;
government grants; government insurance and loan programs; energy and
power production; custom house brokers; ownership of real property;
ownership and operation of broadcast or common carrier radio and
television stations; ownership of shares in the Communications Satellite
Corporation; the provision of common carrier telephone and telegraph
services; the provision of submarine cable services; use of land and
natural resources; mining on the public domain; maritime services and
maritime-related services; and primary dealership in United States
government securities.
2. The United States reserves the right to make or maintain limited
exceptions to most favored nation treatment, as provided in Article II,
paragraph 1, in the sectors or matters it has indicated below:
ownership of real property; mining on the public domain; maritime
services; maritime-related services; and primary dealership in United
States government securities.
3. Bulgaria reserves the right to make or maintain limited exceptions
to national treatment, as provided in Article 11, paragraph 1, in the
sectors or matters it has indicated below:
banking; insurance; ownership of real estate; leases of farm land and
forest land; air, rail, and maritime transportation; governmental
subsidies; government insurance and loan programs; energy and power
production; customs house brokers; provision of telephone and telegraph
services; use of land, natural resources, and mining; ownership and
operation of broadcast or common carrier radio and television stations;
and dealership in government securities.
PROTOCOL
With respect to Article 1, paragraph l(a), the Parties confirm their
mutual understanding that investments covered by this Treaty will not
include loans that were extended prior to January 1, 1992 to the
Government of the Republic of Bulgaria, or to banks owned or controlled
by the Government of Bulgaria, including, inter alia, the Foreign Trade
Bank, for trade finance or balance of payments purposes, and that are
subsequently rescheduled in the London Club.
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