Common use of Scope and Standing Clause in Contracts

Scope and Standing. (1) This Part applies to disputes between a Contracting Party and an investor of the other Contracting Party concerning an alleged breach of an obligation of the former under this Agreement which causes loss or damage to the investor or its investment. An enterprise that is an investment by an investor of the other Contracting Party may not submit a claim to arbitration under this Part. (2) If an investor of a Contracting Party or his investment that is an enterprise initiates proceedings before a national tribunal with respect to a measure that is alleged to be a breach of this Agreement, the dispute may only be submitted to arbitration under this Part if the competent national tribunal has not rendered judgment in the first instance on the merits of the case. The foregoing does not apply to administrative proceedings before the administrative authorities executing the measure that is alleged to be a breach. (3) Without prejudice to Article (18), paragraphs (5) and (6), in case an investor of a Contracting Party submits a claim to arbitration, neither the investor, nor his enterprise, may initiate or continue proceedings before a national tribunal.