Common use of Nationalization and Expropriation Clause in Contracts

Nationalization and Expropriation. 1. In accordance with this Agreement, it is prohibited for each Contracting Party to subject the investments of one of the Parties, or the investments of their nationals established in the territory of either Party, to procedures for restricting the right of ownership or to derive interest from such investments on a permanent or temporary basis except within the limits of the regulations in force or following a judgment given by the competent court. 2. Each Contracting Party shall refrain from nationalizing or expropriating the investments of a national of the other Party made in the territory of the other Party, except where this is in the general interest of that country on the basis of non- discrimination. 3. In the event of nationalisation or expropriation, compensation shall be made on the basis of the principle of the fair commercial value of the direct investment on the day preceding the day on which the arrangements for announcing the decision to the public are made, and the value may be fully recovered and freely transferred out of the territory of the Contracting Party. 4. lf the expropriation concerns a joint investment established in the territory of one of the Parties, the value of the compensation to be paid to the investor or to the Joint Investment Company (JIC) shall be calculated by the other Contracting Party on the basis of its share in the joint project. In the event of failure to reach an agreement between the investor and the Party in whose territory the investment is established, both Parties shall have recourse to the dispute settlement procedures provided for in Article 9 of that agreement.

Nationalization and Expropriation. 1. In accordance with this Agreement, it is prohibited for each Contracting Party to subject the investments of one of the Parties, or the investments of their nationals established in the territory of either Party, to procedures for restricting the right of ownership or to derive interest from such investments on a permanent or temporary basis except within the limits of the regulations in force or following a judgment given by the competent court. 2. Each Contracting Party shall refrain from nationalizing or expropriating the investments of a national of the other Party made in the territory of the other Party, except where this is in the general interest of that country on the basis of non- discrimination. 3. In the event of nationalisation or expropriation, compensation shall be made on the basis of the principle of the fair commercial value of the direct investment on the day preceding the day on which the arrangements for announcing the decision to the public are made, and the value may be fully recovered and freely transferred out of the territory of the Contracting Party. 4. lf If the expropriation concerns a joint investment established in the territory of one of the Parties, the value of the compensation to be paid to the investor or to the Joint Investment Company (JIC) shall be calculated by the other Contracting Party on the basis of its share in the joint project. In the event of failure to reach an agreement between the investor and the Party in whose territory the investment is established, both Parties shall have recourse to the dispute settlement procedures provided for in Article 9 of that agreement.