Act of the Conference on the European Energy Charter - Annex 1: The Energy Charter Treaty - Annex 2: Decisions with respect to the Energy Charter Treaty Official Journal L 380 , 31/12/1994 p. 0024 - 0

its applicable law; (ii) a company or other organization organized

the law applicable in that Contracting Party; (

1. b)with respect to a 'third State`, a natural person, company or other organization which fulfils, mutatis mutandis, the conditions specified in subparagraph (
2. a)for a Contracting Party. 8. 'Make investments` or 'making of investments` means establishing new investments, acquiring all or part of existing investments or moving into different fields of investment activity. 9. 'Returns` means the amounts derived from or associated with an investment, irrespective of the form in which they are paid, including profits, dividends, interest, capital gains, royalty payments, management, technical assistance or other fees and payments in kind. 10. 'Area` means with respect to a State that is a Contracting Party: (
3. a)the territory under its sovereignty, it being understood that territory includes land, internal waters and the territorial sea; and (
4. b)subject to and

the international law of the sea: the sea, sea-bed and its subsoil with regard to which that Contracting Party exercises sovereign rights and jurisdiction. With respect to a Regional Economic Integration Organization which is a Contracting Party, area means the areas of the Member States of such Organization, under the provisions contained in the agreement establishing that Organization. 11. (

1. a)'GATT` means 'GATT 1947` or 'GATT 1994`, or both of them where both are applicable. (
2. b)'GATT 1947` means the General Agreement on Tariffs and Trade, dated 30 October 1947, annexed to the Final Act Adopted at the Conclusion of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment, as subsequently rectified, amended or modified. (
3. c)'GATT 1994` means the General Agreement on Tariffs and Trade as specified in Annex 1A of the Agreement Establishing the World Trade Organization, as subsequently rectified, amended or modified. A party to the Agreement Establishing the World Trade Organization is considered to be a party to GATT 1994. (
4. d)'Related Instruments` means, as appropriate: (
5. i)agreements, arrangements or other legal instruments, including decisions, declarations and understandings, concluded under the auspices of GATT 1947 as subsequently rectified, amended or modified; or (
6. ii)the Agreement Establishing the World Trade Organization including its Annex 1 (except GATT 1994), its Annexes 2, 3 and 4, and the decisions, declarations and understandings related thereto, as subsequently rectified, amended or modified. 12. 'Intellectual property` includes copyrights and related rights, trademarks, geographical indications, industrial designs, patents, layout designs of integrated circuits and the protection of undisclosed information. 13. (
7. a)'Energy Charter Protocol` or 'Protocol` means a treaty, the negotiation of which is authorized and the text of which is adopted by the Charter Conference, which is entered into by two or more Contracting Parties in order to complement, supplement, extend or amplify the provisions of this Treaty with respect to any specific sector or category of activity within the scope of this Treaty, or to areas of cooperation pursuant to Title III of the Charter. (
8. b)'Energy Charter Declaration` or 'Declaration` means a non-binding instrument, the negotiation of which is authorized and the text of which is approved by the Charter Conference, which is entered into by two or more Contracting Parties to complement or supplement the provisions of this Treaty. 14. 'Freely convertible currency` means a currency which is widely traded in international foreign exchange markets and widely used in international transactions. Article 2 Purpose of the Treaty This Treaty establishes a legal framework in order to promote long-term cooperation in the energy field, based on complementarities and mutual benefits,

the objectives and principles of the Charter. PART II COMMERCE Article 3 International markets 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. Article 4 Non-derogation from GATT and Related Instruments Nothing in this Treaty shall derogate, as between particular Contracting Parties which are parties to the GATT, from the provisions of the GATT and Related Instruments as they are applied between those Contracting Parties. Article 5 Trade-related investment measures 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. 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: (

1. 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 (
2. 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; or which restricts: (
3. 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; (
4. 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 (
5. 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. 3. Nothing in paragraph 1 shall be construed to prevent a Contracting Party from applying the trade- related investment measures described in subparagraphs 2 (
6. a)and (
7. c)as a condition of eligibility for export promotion, foreign aid, government procurement or preferential tariff or quota programmes. 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. Article 6 Competition 1. Each Contracting Party shall work to alleviate market distortions and barriers to competition in economic activity in the energy sector. 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. 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. 4. Contracting Parties may cooperate in the enforcement of their competition rules by consulting and exchanging information. 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. 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. 7. The procedures set forth in paragraph 5 and Article 27

the conciliator's decision. 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: (

1. 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. (
2. 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. (
3. 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. (
4. d)The Contracting Parties undertake to observe and ensure that the entities under their control or jurisdiction observe any interim decision under subparagraph (
5. c)on tariffs, terms and conditions for 12 months following the conciliator's decision or until resolution of the dispute, whichever is earlier. (
6. e)Notwithstanding subparagraph (
7. 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 (
8. a)to (
9. d)and those proceedings have not resulted in a resolution of the dispute. (
10. f)The Charter Conference shall adopt standard provisions concerning the conduct of conciliation and the compensation of conciliators. 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. 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. 10. For the purposes of this Article: (
11. a)'Transit` means: (
12. 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 (
13. 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. (
14. 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. Article 8 Transfer of technology 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. 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. Article 9 Access to capital 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. 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. 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. 4. Nothing in this Article shall prevent: (
15. a)financial institutions from applying their own lending or underwriting practices based on market principles and prudential considerations; or (
16. b)a Contracting Party from taking measures: (
17. 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 (
18. ii)to ensure the integrity and stability of its financial system and capital markets. PART III INVESTMENT PROMOTION AND PROTECTION Article 10 Promotion, protection and treatment of investments 1. Each Contracting Party shall,

the provisions of this Treaty, encourage and create stable, equitable, favourable and transparent conditions for investors of other Contracting Parties to make investments in its area. Such conditions shall include a commitment to accord at all times to investments of investors of other Contracting Parties fair and equitable treatment. Such investments shall also enjoy the most constant protection and security and no Contracting Party shall in any way impair by unreasonable or discriminatory measures their management, maintenance, use, enjoyment or disposal. In no case shall such investments be accorded treatment less favourable than that required by international law, including treaty obligations. Each Contracting Party shall observe any obligations it has entered into with an investor or an investment of an investor of any other Contracting Party. 2. Each Contracting Party shall endeavour to accord to investors of other Contracting Parties, as regards the making of investments in its area, the treatment described in paragraph 3. 3. For the purposes of this Article, 'treatment` means treatment accorded by a Contracting Party which is no less favourable than that which it accords to its own investors or to investors of any other Contracting Party or any third State, whichever is the most favourable. 4. A supplementary treaty shall, subject to conditions to be laid down therein, oblige each party thereto to accord to investors of other parties, as regards the making of investments in its area, the treatment described in paragraph 3. That treaty shall be open for signature by the States and Regional Economic Integration Organizations which have signed or acceded to this Treaty. Negotiations towards the supplementary treaty shall commence not later than 1 January 1995, with a view to concluding it by 1 January 1998. 5. Each Contracting Party shall, as regards the making of investments in its area, endeavour to: (

1. a)limit to the minimum the exceptions to the Treatment described in paragraph 3; (
2. b)progressively remove existing restrictions affecting investors of other Contracting Parties. 6. (
3. 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. (
4. b)A Contracting Party may, furthermore, at any time make a voluntary commitment to accord to investors of other Contracting Parties, as regards the making of investments in some or all economic activities in the energy sector in its area, the treatment described in paragraph 3. Such commitments shall be notified to the Secretariat and listed in Annex VC and shall be binding under this Treaty. 7. Each Contracting Party shall accord to investments in its area of investors of other Contracting Parties, and their related activities including management, maintenance, use, enjoyment or disposal, treatment no less favourable than that which it accords to investments of its own investors or of the investors of any other Contracting Party or any third State and their related activities including management, maintenance, use, enjoyment or disposal, whichever is the most favourable. 8. The modalities of application of paragraph 7 in relation to programmes under which a Contracting Party provides grants or other financial assistance, or enters into contracts, for energy technology research and development, shall be reserved for the supplementary treaty described in paragraph 4. Each Contracting Party shall through the Secretariat keep the Charter Conference informed of the modalities it applies to the programmes described in this paragraph. 9. Each State or Regional Economic Integration Organization which signs or accedes to this Treaty shall, on the date it signs the Treaty or deposits its instrument of accession, submit to the Secretariat a report summarizing all laws, regulations or other measures relevant to: (
5. a)exceptions to paragraph 2; or (
6. b)the programmes referred to in paragraph 8. A Contracting Party shall keep its report up to date by promptly submitting amendments to the Secretariat. The Charter Conference shall review these reports periodically. In respect of subparagraph (
7. a)the report may designate parts of the energy sector in which a Contracting Party accords to investors of other Contracting Parties the treatment described in paragraph 3. In respect of subparagraph (
8. b)the review by the Charter Conference may consider the effects of such programmes on competition and investments. 10. Notwithstanding any other provision of this Article, the treatment described in paragraphs 3 and 7 shall not apply to the protection of intellectual property; instead, the treatment shall be as specified in the corresponding provisions of the applicable international agreements for the protection of intellectual property rights to which the respective Contracting Parties are parties. 11. For the purposes of Article 26, the application by a Contracting Party of a trade-related investment measure as described in Article 5

the principles set out in paragraph 1. 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. Article 14 Transfers related to investments 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: (

1. a)the initial capital plus any additional capital for the maintenance and development of an investment; (
2. b)returns; (
3. c)payments under a contract, including amortization of principal and accrued interest payments pursuant to a loan agreement; (
4. d)unspent earnings and other remuneration of personnel engaged from abroad in connection with that investment; (
5. e)proceeds from the sale or liquidation of all or any part of an investment; (
6. f)payments arising out of the settlement of a dispute; (
7. g)payments of compensation pursuant to Articles 12 and 13. 2. Transfers pursuant to paragraph 1 shall be effected without delay and (except in case of a return in kind) in a freely convertible currency. 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. 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. 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. 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 pursuant to Article 29

and subject to the rules of international law.

1. 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.
2. 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.
3. 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. Article 19 Environmental aspects
4. 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:(a) take account of environmental considerations throughout the formulation and implementation of their energy policies; (b) promote market-oriented price formation and a fuller reflection of environmental costs and benefits throughout the energy cycle; (c) having regard to Article 34

Article 29

any applicable, previously agreed dispute settlement procedure; or (c)

the following paragraphs of this Article. 3. (

1. a)Subject only to subparagraphs (
2. b)and (c), each Contracting Party hereby gives its unconditional consent to the submission of a dispute to international arbitration or conciliation

the provisions of this Article. (

1. b)(
2. i)The Contracting Parties listed in Annex ID do not give such unconditional consent where the investor has previously submitted the dispute under subparagraph

Article 39

or the deposit of its instrument of accession

Article 41. (c) A Contracting Party listed in Annex IA does not give such unconditional consent with respect to a dispute arising under the last sentence of Article 10

this Treaty and applicable rules and principles of international law. 7. An investor other than a natural person which has the nationality of a Contracting Party party to the dispute on the date of the consent in writing referred to in paragraph 4 and which, before a dispute between it and that Contracting Party arises, is controlled by investors of another Contracting Party, shall for the purpose of Article 25

paragraph 1 within a reasonable period of time, either party thereto may, except as otherwise provided in this Treaty or agreed in writing by the Contracting Parties, and except as concerns the application or interpretation of Article 6 or Article 19 or, for Contracting Parties listed in Annex IA, the last sentence of Article 10

subparagraph (d). (c) A third member, who may not be a national or citizen of a Contracting Party party to the dispute, shall be appointed by the Contracting Parties parties to the dispute. That member shall be the President of the tribunal. If, within 150 days of the receipt of the notice referred to in paragraph 2, the Contracting Parties are unable to agree on the appointment of a third member, that appointment shall be made,

subparagraph (d), at the request of either Contracting Party submitted within 180 days of the receipt of that notice. (d) Appointments requested to be made

this paragraph shall be made by the Secretary-General of the Permanent Court of International Arbitration within 30 days of the receipt of a request to do so. If the Secretary-General is prevented from discharging this task, the appointments shall be made by the First Secretary of the Bureau. If the latter, in turn, is prevented from discharging this task, the appointments shall be made by the most senior deputy. (e) Appointments made

subparagraphs (

1. a)to (
2. d)shall be made with regard to the qualifications and experience, particularly in matters covered by this Treaty, of the members to be appointed. (
3. f)In the absence of an agreement to the contrary between the Contracting Parties, the Arbitration Rules of Uncitral shall govern, except to the extent modified by the Contracting Parties parties to the dispute or by the arbitrators. The tribunal shall take its decisions by a majority vote of its members. (
4. g)The tribunal shall decide the dispute

this Treaty and applicable rules and principles of international law. (

1. h)The arbitral award shall be final and binding upon the Contracting Parties parties to the dispute. (
2. i)Where, in making an award, a tribunal finds that a measure of a regional or local government or authority within the area of a Contracting Party listed in Part I of Annex P is not in conformity with this Treaty, either party to the dispute may invoke the provisions of Part II of Annex P. (
3. j)The expenses of the tribunal, including the remuneration of its members, shall be borne in equal shares by the Contracting Parties parties to the dispute. The tribunal may, however, at its discretion direct that a higher proportion of the costs be paid by one of the Contracting Parties parties to the dispute. (
4. k)Unless the Contracting Parties parties to the dispute agree otherwise, the tribunal shall sit in The Hague, and use the premises and facilities of the Permanent Court of Arbitration. (
5. l)A copy of the award shall be deposited with the Secretariat which shall make it generally available. Article 28 Non-application of Article 27 to certain disputes A dispute between Contracting Parties with respect to the application or interpretation of Article 5 or 29 shall not be settled pursuant to Article 27 unless the Contracting Parties parties to the dispute so agree. PART VI TRANSITIONAL PROVISIONS Article 29 Interim provisions on trade-related matters 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. 2. (
6. 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 (
7. b)and (
8. 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. (
9. 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. (
10. c)As concerns trade between any two parties to the GATT, subparagraph (
11. a)shall not apply if either of those parties is not a party to GATT 1947. 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. 4. Each Contracting Party shall endeavour not to increase any tariff rate or other charge levied at the time of importation or exportation: (
12. 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; (
13. 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). 5. A Contracting Party may increase such tariff rate or other charge above the level referred to in paragraph 4 only if: (
14. 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 (
15. 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. 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. 7. Annex D shall apply to disputes regarding compliance with provisions applicable to trade pursuant to 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: (
16. a)has been notified

and meets the other requirements of subparagraph 2 (

1. b)and Annex TFU; or (
2. b)establishes a free-trade area or a customs union as described in Article XXIV of the GATT. Article 30 Developments in international trading arrangements Contracting Parties undertake that in the light of the results of the Uruguay Round of Multilateral Trade Negotiations embodied principally in the Final Act thereof done at Marrakesh, 15 April 1994, they will commence consideration not later than 1 July 1995 or the entry into force of this Treaty, whichever is the later, of appropriate amendments to this Treaty with a view to the adoption of any such amendments by the Charter Conference. Article 31 Energy-related equipment The provisional Charter Conference shall at its first meeting commence examination of the inclusion of energy-related equipment in the trade provisions of this Treaty. Article 32 Transitional arrangements 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: Article 6

this Treaty and the Protocols the coordination of appropriate general measures to carry out the principles of the Charter; (

1. d)consider and adopt programmes of work to be carried out by the Secretariat; (
2. e)consider and approve the annual accounts and budget of the Secretariat; (
3. f)consider and approve or adopt the terms of any headquarters or other agreement, including privileges and immunities considered necessary for the Charter Conference and the Secretariat; (
4. g)encourage cooperative efforts aimed at facilitating and promoting market-oriented reforms and modernization of energy sectors in those countries of central and eastern Europe and the former Union of Soviet Socialist Republics undergoing economic transition; (
5. h)authorize and approve the terms of reference for the negotiation of Protocols, and consider and adopt the texts thereof and of amendments thereto; (
6. i)authorize the negotiation of declarations, and approve their issuance; (
7. j)decide on accessions to this Treaty; (
8. k)authorize the negotiation of and consider and approve or adopt association agreements; (
9. l)consider and adopt texts of amendments to this Treaty; (
10. m)consider and approve modifications of and technical changes to the Annexes to this Treaty; (
11. n)appoint the Secretary-General and take all decisions necessary for the establishment and functioning of the Secretariat including the structure, staff levels and standard terms of employment of officials and employees. 4. In the performance of its duties, the Charter Conference, through the Secretariat, shall cooperate with and make as full a use as possible, consistently with economy and efficiency, of the services and programmes of other institutions and organizations with established competence in matters related to the objectives of this Treaty. 5. The Charter Conference may establish such subsidiary bodies as it considers appropriate for the performance of its duties. 6. The Charter Conference shall consider and adopt rules of procedure and financial rules. 7. In 1999 and thereafter at intervals (of not more than five years) to be determined by the Charter Conference, the Charter Conference shall thoroughly review the functions provided for in this Treaty in the light of the extent to which the provisions of the Treaty and Protocols have been implemented. At the conclusion of each review the Charter Conference may amend or abolish the functions specified in paragraph 3 and may discharge the Secretariat. Article 35 Secretariat 1. In carrying out its duties, the Charter Conference shall have a Secretariat which shall be composed of a Secretary-General and such staff as are the minimum consistent with efficient performance. 2. The Secretary-General shall be appointed by the Charter Conference. The first such appointment shall be for a maximum period of five years. 3. In the performance of its duties the Secretariat shall be responsible to and report to the Charter Conference. 4. The Secretariat shall provide the Charter Conference with all necessary assistance for the performance of its duties and shall carry out the functions assigned to it in this Treaty or in any Protocol and any other functions assigned to it by the Charter Conference. 5. The Secretariat may enter into such administrative and contractual arrangements as may be required for the effective discharge of its functions. Article 36 Voting 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: (
12. a)adopt amendments to this Treaty other than amendments to Articles 34 and 35 and Annex T; (
13. b)approve accessions to this Treaty pursuant to Article 41 by States or Regional Economic Integration Organizations which were not signatories to the Charter as of 16 June 1995; (
14. c)authorize the negotiation of and approve or adopt the text of association agreements; (
15. d)approve modifications to Annexes EM, NI, G and B; (
16. e)approve technical changes to the Annexes to this Treaty; and (
17. f)approve the Secretary-General's nominations of panelists pursuant to Annex D, paragraph 7. The Contracting Parties shall make every effort to reach agreement by consensus on any other matter requiring their decision pursuant to this Treaty. If agreement cannot be reached by consensus, paragraphs 2 to 5 shall apply. 2. Decisions on budgetary matters referred to in Article 34

Article 36(1) (d).

1. A Protocol shall contain provisions to assure that any costs of the Secretariat arising from that Protocol are borne by the parties thereto.
2. The Charter Conference may in addition accept voluntary contributions from one or more Contracting Parties or from other sources. Costs met from such contributions shall not be considered costs of the Secretariat for the purposes of paragraph
3. PART VIII FINAL PROVISIONS Article 38 Signature This Treaty shall be open for signature at Lisbon from 17 December 1994 to 16 June 1995 by the States and Regional Economic Integration Organizations which have signed the Charter. Article 39 Ratification, acceptance or approval This Treaty shall be subject to ratification, acceptance or approval by signatories. Instruments of ratification, acceptance or approval shall be deposited with the Depositary. Article 40 Application to territories
4. 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.
5. 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 90th day following the receipt by the Depositary of such declaration.
6. 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 47

Article 44

, to the extent that such provisional application is not inconsistent with its constitution, laws or regulations. 2. (

1. 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. (
2. b)Neither a signatory which makes a declaration

subparagraph (

1. a)nor investors of that signatory may claim the benefits of provisional application pursuant to paragraph 1. (
2. c)Notwithstanding subparagraph (a), any signatory making a declaration referred to in subparagraph (
3. a)shall apply Part VII provisionally pending the entry into force of the Treaty for such signatory

Article 44

, to the extent that such provisional application is not inconsistent with its laws or regulations. 3. (

1. 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. (
2. b)In the event that a signatory terminates provisional application pursuant to subparagraph (a), the obligation of the signatory pursuant to 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 20 years following the effective date of termination, except as otherwise provided in subparagraph (c). (
3. c)Subparagraph (
4. 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. 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. 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. 6. The signatories shall,

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 pursuant to Article 37

Article 41

shall, pending the Treaty's entry into force, have the rights and assume the obligations of a signatory pursuant to this Article. Article 46 Reservations No reservations may be made to this Treaty. Article 47 Withdrawal

1. At any time after five years from the date on which this Treaty has entered into force for a Contracting Party, that Contracting Party may give written notification to the Depositary of its withdrawal from the Treaty.
2. Any such withdrawal shall take effect upon the expiry of one year after the date of the receipt of the notification by the Depositary, or on such later date as may be specified in the notification of withdrawal.
3. The provisions of this Treaty shall continue to apply to investments made in the area of a Contracting Party by investors of other Contracting Parties or in the area of other Contracting Parties by investors of that Contracting Party as of the date when that Contracting Party's withdrawal from the Treaty takes effect for a period of 20 years from such date.
4. All Protocols to which a Contracting Party is party shall cease to be in force for that Contracting Party on the effective date of its withdrawal from this Treaty. Article 48 Status of Annexes and Decisions The Annexes to this Treaty and the Decisions set out in Annex 2 to the Final Act of the European Energy Charter Conference signed at Lisbon on 17 December 1994 are integral parts of the Treaty. Article 49 Depositary The Government of the Portuguese Republic shall be the Depositary of this Treaty. Article 50 Authentic texts In witness whereof the undersigned, being duly authorized to that effect, have signed this Treaty in English, French, German, Italian, Russian and Spanish, of which every text is equally authentic, in one original, which will be deposited with the Government of the Portuguese Republic. Done at Lisbon on the seventeenth day of December in the year one thousand nine hundred and ninety-four. Fait š Lisbonne, le dix-sept dłcembre mil neuf cent quatre-vingt-quatorze. Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig. Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovantaquattro. >REFERENCE TO A FILM> Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro. Udfördiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems. øółżõ ėĮ÷ ĖłėńņŽżń, ėĮłĖ ōąśń õĘĮĄ Äõśõüņęč˙į Į˙į ąĮ˙įĖ ščūłń õżłńśŽėłń õżõżČżĮń Įąėėõęń. Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig. Feito em Lisboa, aos dezassete de Dezembro de mil novecentos e noventa e quatro. Pūr Republikūn e Shqipūrisū >REFERENCE TO A FILM> >REFERENCE TO A FILM> For Australia >REFERENCE TO A FILM> FŽr die Republik Österreich >REFERENCE TO A FILM> >REFERENCE TO A FILM> Pour le royaume de Belgique Voor het Koninkrijk Belgiū FŽr das KŠnigreich Belgien >REFERENCE TO A FILM> Cette signature engage łgalement la Communautł fran÷aise de Belgique, la Communautł flamande, la Communautł germanophone de Belgique, la Rłgion wallonne, la Rłgion flamande et la rłgion de Bruxelles-Capitale. Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van Belgiū, de Duitstalige Gemeenschap van Belgiū, het Waals Gewest en het Brussels Hoofdstedelijk Gewest. Diese Unterschrift bindet ebenso die Flōmische Gemeinschaft, die FranzŠsische Gemeinschaft Belgiens, die Deutschsprachige Gemeinschaft Belgiens, die Flōmische Region, die Wallonische Region und die Region BrŽssel-Hauptstadt. >REFERENCE TO A FILM> >REFERENCE TO A FILM> For Canada Pour le Canada za Republiku Hrvatsku >REFERENCE TO A FILM> For the Republic of Cyprus >REFERENCE TO A FILM> Za OCeskou Republiku >REFERENCE TO A FILM> For Kongeriget Danmark >REFERENCE TO A FILM> Eesti Vabariigi nimel >REFERENCE TO A FILM> Por las Comunidades Europeas For De Europöiske Föllesskaber FŽr die Europōischen Gemeinschaften Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ For the European Communities Pour les Communautłs europłennes Per le Comunitš europee Voor de Europese Gemeenschappen Pelas Comunidades Europeias >REFERENCE TO A FILM> Suomen tasavallan puolesta >REFERENCE TO A FILM> Pour la Rłpublique fran÷aise>REFERENCE TO A FILM> >REFERENCE TO A FILM> FŽr die Bundesrepublik Deutschland >REFERENCE TO A FILM> Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń >REFERENCE TO A FILM> A Magyar KŠztńrsasńg nevłben Fyrir hŠnd Ly sveldisins żslands >REFERENCE TO A FILM> Thar cheann na hÉireann For Ireland >REFERENCE TO A FILM> Per la Repubblica italiana >REFERENCE TO A FILM> >REFERENCE TO A FILM> >REFERENCE TO A FILM> >REFERENCE TO A FILM> Latvijas Republikas varda >REFERENCE TO A FILM> FŽr das FŽrstentum Liechtenstein >REFERENCE TO A FILM> Lietuvos Respublikos vardu >REFERENCE TO A FILM> Pour le grand-duchł de Luxembourg >REFERENCE TO A FILM> For the Republic of Malta >REFERENCE TO A FILM> Pentru Republica Moldova >REFERENCE TO A FILM> Voor het Koninkrijk der Nederlanden >REFERENCE TO A FILM> For Kongeriket Norge >REFERENCE TO A FILM> Za Rzeczpospolit Na Polsk Na >REFERENCE TO A FILM> Pela RepŪblica Portuguesa >REFERENCE TO A FILM> Pentru RĮmania >REFERENCE TO A FILM> >REFERENCE TO A FILM> Za SlovenskŪ republiku >REFERENCE TO A FILM> Za Republiko Slovenijo >REFERENCE TO A FILM> Por el Reino de Espaęa >REFERENCE TO A FILM> FŠr Konungariket Sverige >REFERENCE TO A FILM> FŽr die Schweizerische Eidgenossenschaft Pour la Confłdłration suisse Per la Confederazione svizzera >REFERENCE TO A FILM> >REFERENCE TO A FILM> TŽrkiye Cumhuriyeti adina >REFERENCE TO A FILM> >REFERENCE TO A FILM> For the United Kingdom of Great Britain and Northern Ireland >REFERENCE TO A FILM> For the United States of America >REFERENCE TO A FILM> ANNEXES TO THE ENERGY CHARTER TREATY TABLE OF CONTENTS Page
5. Annex EM Energy materials and products (

Article 1(4)) 65 2.

Annex NI Non-applicable energy materials and products for definition of 'economic activity in the energy sector` (

Article 1(5)) 66 3.

Annex TRM Notification and phase-out (TRIMs) (

Article 5(4)) 66 4.

Annex N List of Contracting Parties requiring at least three separate areas to be involved in a transit (

Article 7(10) (a)) 67 5.

Annex VC List of Contracting Parties which have made voluntary binding commitments in respect of Article 10

Article 10(6)) 67 6.

Annex ID List of Contracting Parties not allowing an investor to resubmit the same dispute to international arbitration at a later stage pursuant to Article 26 (

Article 26(3) (b) (i)) 68 7.

Annex IA List of Contracting Parties not allowing an investor or Contracting Party to submit a dispute concerning the last sentence of Article 10

Articles 26

Article 27(3) (i)) 68 9.

Annex G Exceptions and rules governing the application of the provisions of the GATT and Related Instruments (

Article 29(2) (a)) 70 10.

Annex TFU Provisions regarding trade agreements between States which were constituent parts of the Former Union of Soviet Socialist Republics (

Article 29(2) (b)) 73 11.

Annex D Interim provisions for trade dispute settlement (

Article 29(7)) 74 Page 12.

Annex B Formula for allocating charter costs (

Article 37(3)) 78 13.

Annex PA List of signatories which do not accept the provisional application obligation of Article 45

Article 45(3) (c)) 78 14.

Annex T Contracting Parties' transitional measures (

Article 32(1)) 79 1.

Annex EM ENERGY MATERIALS AND PRODUCTS (

Article 1(4)) >TABLE POSITION> 2.

Annex NI NON-APPLICABLE ENERGY MATERIALS AND PRODUCTS FOR DEFINITION OF 'ECONOMIC ACTIVITY IN THE ENERGY SECTOR` (

Article 1(5)) >TABLE POSITION> 3.

Annex TRM NOTIFICATION AND PHASE-OUT (TRIMs) (

Article 5(4)) 1.

Each Contracting Party shall notify to the Secretariat all trade-related investment measures which it applies that are not in conformity with the provisions of Article 5, within: (

1. a)90 days after the entry into force of this Treaty if the Contracting Party is a party to the GATT; or (
2. b)12 months after the entry into force of this Treaty if the Contracting Party is not a party to the GATT. Such trade-related investment measures of general or specific application shall be notified along with their principal features. 2. In the case of trade-related investment measures applied under discretionary authority, each specific application shall be notified. Information that would prejudice the legitimate commercial interests of particular enterprises need not be disclosed. 3. Each Contracting Party shall eliminate all trade-related investment measures which are notified under paragraph 1 within: (
3. a)two years from the date of entry into force of this Treaty if the Contracting Party is a party to the GATT; or (
4. b)three years from the date of entry into force of this Treaty if the Contracting Party is not a party to the GATT. 4. During the applicable period referred to in paragraph 3 a Contracting Party shall not modify the terms of any trade-related investment measure which it notifies pursuant to paragraph 1 from those prevailing at the date of entry into force of this Treaty so as to increase the degree of inconsistency with the provisions of Article 5 of this Treaty. 5. Notwithstanding the provisions of paragraph 4, a Contracting Party, in order not to disadvantage established enterprises which are subject to a trade-related investment measure notified pursuant to paragraph 1, may apply during the phase-out period the same trade-related investment measure to a new investment where: (
5. a)the products of such investment are like products to those of the established enterprises; and (
6. b)such application is necessary to avoid distorting the conditions of competition between the new investment and the established enterprises. Any trade-related investment measure so applied to a new investment shall be notified to the Secretariat. The terms of such a trade-related investment measure shall be equivalent in their competitive effect to those applicable to the established enterprises, and it shall be terminated at the same time. 6. Where a State or Regional Economic Integration Organization accedes to this Treaty after the Treaty has entered into force: (
7. a)the notification referred to in paragraphs 1 and 2 shall be made by the later of the applicable date in paragraph 1 or the date of deposit of the instrument of accession; and (
8. b)the end of the phase-out period shall be the later of the applicable date in paragraph 3 or the date on which the Treaty enters into force for that State or Regional Economic Integration Organization. 4. Annex N LIST OF CONTRACTING PARTIES REQUIRING AT LEAST THREE SEPARATE AREAS TO BE INVOLVED IN A TRANSIT (

Article 7(10) (a)) 1.

Canada and United States of America 5. Annex VC LIST OF CONTRACTING PARTIES WHICH HAVE MADE VOLUNTARY BINDING COMMITMENTS IN RESPECT OF ARTICLE 10

Article 10(6)) 6.

Annex ID LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR TO RESUBMIT THE SAME DISPUTE TO INTERNATIONAL ARBITRATION AT A LATER STAGE PURSUANT TO ARTICLE 26 (

Article 26(3) (b) (i)) 1.

Australia

1. Azerbaijan
2. Bulgaria
3. Canada
4. Croatia
5. Cyprus
6. The Czech Republic
7. European Communities
8. Finland
9. Greece
10. Hungary
11. Ireland
12. Italy
13. Japan
14. Kazakhstan
15. Norway
16. Poland
17. Portugal
18. Romania
19. The Russian Federation
20. Slovenia
21. Spain
22. Sweden
23. United States of America
24. Annex IA LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR OR CONTRACTING PARTY TO SUBMIT A DISPUTE CONCERNING THE LAST SENTENCE OF ARTICLE 10

Articles 26

Article 27(3) (i)) PART I 1.

Canada

1. Australia PART II
2. Where, in making an award, the tribunal finds that a measure of a regional or local government or authority of a Contracting Party (hereinafter referred to as the 'Responsible Party`) is not in conformity with a provision of this Treaty, the Responsible Party shall take such reasonable measures as may be available to it to ensure observance of the Treaty in respect of the measure.
3. The Responsible Party shall, within 30 days from the date the award is made, provide to the Secretariat written notice of its intentions as to ensuring observance of the Treaty in respect of the measure. The Secretariat shall present the notification to the Charter Conference at the earliest practicable opportunity, and no later than the meeting of the Charter Conference following receipt of the notice. If it is impracticable to ensure observance immediately, the Responsible Party shall have a reasonable period of time in which to do so. The reasonable period of time shall be agreed by both parties to the dispute. In the event that such agreement is not reached, the Responsible Party shall propose a reasonable period for approval by the Charter Conference.
4. Where the Responsible Party fails, within the reasonable period of time, to ensure observance in respect of the measure, it shall at the request of the other Contracting Party party to the dispute (hereinafter referred to as the 'Injured Party`) endeavour to agree with the Injured Party on appropriate compensation as a mutually satisfactory resolution of the dispute.
5. If no satisfactory compensation has been agreed within 20 days of the request of the Injured Party, the Injured Party may with the authorization of the Charter Conference suspend such of its obligations to the Responsible Party under the Treaty as it considers equivalent to those denied by the measure in question, until such time as the Contracting Parties have reached agreement on a resolution of their dispute or the non-conforming measure has been brought into conformity with the Treaty.
6. In considering what obligations to suspend, the Injured Party shall apply the following principles and procedures: (a) The Injured Party should first seek to suspend obligations with respect to the same part of the Treaty as that in which the tribunal has found a violation. (b) If the Injured Party considers that it is not practicable or effective to suspend obligations with respect to the same part of the Treaty, it may seek to suspend obligations