Energy Charter Secretariat - ena.lt

1 Energy Charter Secretariat The Energy Charter treaty and Related Documents The Energy Charter treaty Energy Charter Secretariat and Related Documents 2004. A Legal Framework Energy Charter Secretariat Boulevard de la Woluwe, 56. for International Energy Cooperation ISBN 90-5948-029-5 B-1200 Brussels, Belgium D/2004/7850/5. Tel: +32 (0) 2 775 98 00. Fax: +32 (0) 2 775 98 01. E-mail: THE Energy Charter treaty . AND RELATED DOCUMENTS. A LEGAL FRAMEWORK FOR. INTERNATIONAL Energy COOPERATION. 2. FOREWORD. The Energy Charter treaty is a unique instrument for the promotion of international cooperation in the Energy sector.

2 Following its entry into force on 16 April 1998, the treaty , together with the related documents contained in this booklet, provides an important legal basis for the creation of an open international Energy market. The Charter process includes the countries of the enlarged European Union, Central and Eastern Europe, the Russian Federation, Central Asia and the Caucasus, as well as Japan, Australia and Mongolia. The treaty remains open for accession by all countries committed to observance of its principles. It is very positive in this regard that states such as China, Iran, South Korea and the countries of ASEAN are taking a close interest in the Charter process, thus opening up the prospect of a further extension of its geographical scope.

3 The primary challenge facing the constituent members of the Energy Charter process in the coming years will be that of ensuring full implementation of the treaty 's commitments. This will entail increased focus on multilateral cooperation over transit, trade, investments, environmental protection and Energy e ciency. By continuing to build on its existing work in these areas, the Charter process stands ready to play a key role in translating the aim of a truly open non-discriminatory Energy market into reality. This publication of the Energy Charter treaty and related documents has been made possible thanks to a generous nancial contribution from the Netherlands.

4 On behalf of the Energy Charter Secretariat , I would like to express my sincere gratitude for this support. I trust that this publication will provide a valuable reference tool, and also help in raising broader awareness about the provisions of the Energy Charter treaty . Dr Ria Kemper Secretary General Energy Charter Secretariat September 2004. 3. 4. TABLE OF CONTENTS. EXPLANATORY 11. AN INTRODUCTION TO THE Energy Charter 13. FINAL ACT OF THE EUROPEAN Energy Charter CONFERENCE .. 21. THE Energy Charter treaty .. 39. Preamble .. 39. Part I Definitions and Purpose.

5 41. Article 1 41. Article 2 Purpose of the treaty .. 44. Part II Commerce .. 45. Article 3 International Markets .. 45. Article 4 Non-derogation from GATT and Related Instruments .. 45. Article 5 Trade-related Investment Measures .. 45. Article 6 Competition .. 46. Article 7 Transit .. 48. Article 8 Transfer of Technology .. 51. Article 9 Access to Capital .. 51. Part III Investment Promotion and Protection .. 53. Article 10 Promotion, Protection and Treatment of Investments .. 53. Article 11 Key Personnel .. 56. Article 12 Compensation for Losses .. 56. Article 13 Expropriation.

6 57. Article 14 Transfers Related to Investments .. 58. Article 15 Subrogation .. 59. Article 16 Relation to Other Agreements .. 60. Article 17 Non-application of Part III in certain circumstances .. 60. Part IV Miscellaneous Provisions .. 62. Article 18 Sovereignty over Energy Resources .. 62. Article 19 Environmental 62. Article 20 Transparency .. 64. Article 21 Taxation .. 65. Article 22 State and Privileged Enterprises .. 68. Article 23 Observance by Sub-national Authorities .. 68. Article 24 Exceptions .. 69. Article 25 Economic Integration Agreements.

7 71. 5. Part V Dispute Settlement .. 72. Article 26 Settlement of Disputes between an Investor and a Contracting Party .. 72. Article 27 Settlement of Disputes between Contracting Parties .. 74. Article 28 Non-application of Article 27 to certain Disputes .. 76. Part VI Transitional Provisions .. 77. Article 29 Interim Provisions on Trade-related Matters .. 77. Article 30 Developments in International Trading Arrangements .. 79. Article 31 Energy -related Equipment .. 79. Article 32 Transitional Arrangements .. 79. Part VII Structure and Institutions .. 82. Article 33 Energy Charter Protocols and Declarations.

8 82. Article 34 Energy Charter Conference .. 83. Article 35 Secretariat .. 84. Article 36 Voting .. 85. Article 37 Funding Principles .. 86. Part VIII Final Provisions .. 87. Article 38 Signature .. 87. Article 39 Ratification, Acceptance or Approval .. 87. Article 40 Application to Territories .. 87. Article 41 Accession .. 88. Article 42 88. Article 43 Association Agreements .. 88. Article 44 Entry into Force .. 89. Article 45 Provisional Application .. 89. Article 46 Reservations .. 91. Article 47 Withdrawal .. 91. Article 48 Status of Annexes and Decisions.

9 91. Article 49 Depository .. 91. Article 50 Authentic Texts .. 92. Annexes to the Energy Charter treaty .. 93. 1. Annex EM Energy Material and Products .. 93. 2. Annex NI Non-Applicable Energy Materials and Products for Definitions of Economic Activity in the Energy Sector .. 95. 3. Annex TRM Notification and Phase-Out (TRIMs) .. 95. 4. Annex N List of Contracting Parties Requiring at least 3 separate Areas to be involved in a 97. 5. Annex VC List of Contracting Parties which have made Voluntary Binding Commitments in respect of Article 10(3) .. 97. 6. 6. Annex ID List of Contracting Parties not allowing an Investor to Resubmit the same dispute to International Arbitration at a later stage under Article 26.

10 97. 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(1) to International Arbitration .. 98. 8. Annex P Special Sub-National Dispute Procedure .. 98. 9. Annex G Exceptions and Rules Governing the Application of the Provisions of the GATT and Related Instruments ..100. 10. Annex TFU Provisions regarding Trade Agreements between States which were Constituent Parts of the Former Union of Soviet Socialist Republics ..104. 11. Annex D Interim Provisions for Trade Dispute Settlement.