Expropriation

By：Agreement on Investment Article 8th Update：2016-05-27

A Party shall not expropriate, nationalise or take other similar measures (“expropriation”) against investments of investors of another Party,unless the following conditions are met:
(a) for a public purpose;
(b) in accordance with applicable domestic laws, including legal procedures;
(c) carried out in a non-discriminatory manner; and
(d) on payment of compensation in accordance with Paragraph 2.

Such compensation shall amount to the fair market value of the expropriated investment at the time when expropriation was publicly announced or when expropriation occurred, whichever is earlier, and it shall be freely transferable in freely usable currencies from the host country. The fair market value shall not reflect any change in market value occurring because the expropriation had become publicly known earlier.

The compensation shall be settled and paid without unreasonable delay. In the event of delay,the compensation shall include interest at the prevailing commercial interest rate from the date of expropriation until the date of payment.

The compensation,including any accrued interest, shall be payable either in the currency in which the investment was originally made or, if requested by the investor, in a freely usable currency.

Notwithstanding Paragraph 1,Paragraph 2 and Paragraph 3, any measure of expropriation relating to land shall be as defined in the expropriating Party’s existing domestic laws and regulations and any amendments thereto, and shall be for the purposes of and upon payment of compensation in accordance with the aforesaid laws and regulations.

Where a Party expropriates the assets of a juridical person which is incorporated or constituted under its laws and regulations, and in which investors of another Party own shares, it shall apply the provisions of the preceding Paragraphs so as to ensure that compensation is paid to such investors to the extent of their interest in the assets expropriated.

This Article shall not apply to the issuance of compulsory licences granted to intellectual property rights in accordance with the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement.