b) The Secretary-General shall establish an arbitral panel in accordance with subparagraphs (2)d) to f), which if practicable shall be the same panel which made the ruling or recommendation referred to in subparagraph (4)d), to examine the level of obligations that the injured Contracting Party proposes to suspend. Unless the Charter Conference decides otherwise the rules of procedure for panel proceedings shall be adopted in accordance with subparagraph (3)a).
c) The arbitral panel shall determine whether the level of obligations proposed to be suspended by the injured Contracting Party is excessive in relation to the injury it experienced, and if so, to what extent. It shall not review the nature of the obligations suspended, except insofar as this is inseparable from the determination of the level of suspended obligations.
d) The arbitral panel shall deliver its written determination to the injured and the non-complying Contracting Parties and to the Secretariat within 60 days of the establishment of the panel or within such other period as may be agreed by the injured and the non-complying Contracting Parties. The Secretariat shall present the determination to the Charter Conference at the earliest practicable opportunity, and no later than the meeting of the Charter Conference following receipt of the determination.
e) The determination of the arbitral panel shall become final and binding 30 days after the date of its presentation to the Charter Conference, and any level of suspension of benefits allowed thereby may thereupon be put into effect by the injured Contracting Party in such manner as that Contracting Party considers equivalent in the circumstances, unless prior to the expiration of the 30 days period the Charter Conference decides otherwise.
f) In suspending any obligations to a non-complying Contracting Party, an injured Contracting Party shall make every effort not to affect adversely the trade of any other Contracting Party.
(7) Each Contracting Party may designate two individuals who shall, in the case of Contracting Parties which are also party to the GATT, if they are willing and able to serve as panellists under this Annex, be panellists currently nominated for the purpose of GATT dispute panels. The Secretary-General may also designate, with the approval of the Charter Conference, not more than ten individuals, who are willing and able to serve as panellists for purposes of dispute resolution in accordance with paragraphs (2) to (4). The Charter Conference may in addition decide to designate for the same purposes up to 20 individuals, who serve on dispute settlement rosters of other international bodies, who are willing and able to serve as panellists. The names of all of the individuals so designated shall constitute the dispute settlement roster. Individuals shall be designated strictly on the basis of objectivity, reliability and sound judgement and, to the greatest extent possible, shall have expertise in international trade and energy matters, in particular as relates to provisions applicable under Article 29. In fulfilling any function under this Annex, designees shall not be affiliated with or take instructions from any Contracting Party. Designees shall serve for renewable terms of five years and until their successors have been designated. A designee whose term expires shall continue to fulfil any function for which that individual has been chosen under this Annex. In the case of death, resignation or incapacity of a designee, the Contracting Party or the Secretary-General, whichever designated said designee, shall have the right to designate another individual to serve for the remainder of that designee’s term, the designation by the Secretary-General being subject to approval of the Charter Conference.
(8) Notwithstanding the provisions contained in this Annex, Contracting Parties are encouraged to consult throughout the dispute resolution proceeding with a view to settling their dispute.
(9) The Charter Conference may appoint or designate other bodies or fora to perform any of the functions delegated in this Annex to the Secretariat and the Secretary-General.
12. Annex B
(1) Contributions payable by Contracting Parties shall be determined by the Secretariat annually on the basis of their percentage contributions required under the latest available United Nations Regular Budget Scale of Assessment (supplemented by information on theoretical contributions for any Contracting Parties which are not UN members).
(2) The contributions shall be adjusted as necessary to ensure that the total of all Contracting Parties’ contributions is 100%.
13. Annex PA
[In accordance with Article 45(3)c)]
1. The Czech Republic
2. Germany
3. Hungary
4. Lithuania
5. Poland
6. Slovakia
14. Annex T
List of Contracting Parties entitled to transitional arrangements
Albania
Armenia
Azerbaijan
Belarus
Bulgaria
Croatia
The Czech Republic
Estonia
Georgia
Hungary
Kazakhstan
Kyrgyzstan
Latvia
Lithuania
Moldova
Poland
Romania
The Russian Federation
Slovakia
Slovenia
Tajikistan
Turkmenistan
Ukraine
Uzbekistan
List of provisions subject to transitional arrangements
Provision
Article 6(2)
Article 6(5)
Article 7(4)
Article 9(1)
Article 10(7)
Article 14(1)d)
Article 20(3)
Article 22(3)
Article 6(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.”
Country: Albania
Sector
All energy sectors.
Level of government
National.
Description
There is no law on protection of competition in Albania. The law No 7746 of 28 July 1993 on Hydrocarbons and the law No 7796 of 17 February 1994 on Minerals do not include such provisions. There is no law on electricity which is in the stage of preparation. This law is planned to be submitted to the Parliament by the end of 1996. In these laws Albania intends to include provisions on ant-competitive conduct.
Phase-out
1 January 1998.
Country: Armenia
Sector
All energy sectors.
Level of government
National.
Description
At present a state monopoly exists in Armenia in most energy sectors. There is no law on protection of competition, thus the rules of competition are not yet being implemented. There are no laws on energy. The draft laws on energy are planned to be submitted to the Parliament in 1994. The laws are envisaged to include provisions on anti-competitive behaviour, which would be harmonized with the EC legislation on competition.
Phase-out
31 December 1997.
Country: Azerbaijan
Sector
All energy sectors.
Level of government
National.
Description
The anti-monopoly legislation is at the stage of elaboration.
Phase-out
1 January 2000.
C
ountry: Belarus
Sector
All energy sectors.
Level of government
National.
Description
Anti-monopoly legislation is at the stage of elaboration.
Phase-out
1 January 2000.
Country: Georgia
Sector
All energy sectors.
Level of government
National.
Description
Laws on demonopolization are at present at the stage of elaboration in Georgia and that is why the State has so far the monopoly for practically all energy sources and energy resources, which restricts the possibility of competition in the energy and fuel complex.
Phase-out
1 January 1999.
Country: Kazakhstan
Sector
All energy sectors.
Level of government
National.
Description
The law on Development of Competition and Restriction of Monopolistic Activities (No 656 of 11 June 1991) has been adopted, but is of a general nature. It is necessary to develop the legislation further, in particular by means of adopting relevant amendments or adopting a new law.
Phase-out
1 January 1998.
Country: Kyrgyzstan
Sector
All energy sectors.
Level of government
National.
Description
The law on Anti-monopoly Policies has already been adopted. The transitional period is needed to adapt provisions of this law to the energy sector which is now strictly regulated by the state.
Phase-out
1 July 2001.
Country: Moldova
Sector
All energy sectors.
Level of government
National.
Description
The law on Restriction of Monopolistic Activities and Development of Competition of 29 January 1992 provides an organizational and legal basis for the development of competition, and of measures to prevent, limit and restrict monopolistic activities; it is oriented towards implementing market economy conditions. This law, however, does not provide for concrete measures of anti-competitive conduct in the energy sector, nor does it cover completely the requirements of Article 6.
In 1995 drafts of a law on Competition and a State Programme of Demonopolization of the Economy will be submitted to the Parliament. The draft law on Energy which will be also submitted to the Parliament in 1995 will cover issues on demonopolization and development of competition in the energy sector.
Phase-out
1 January 1998.
Country: Romania
Sector
All energy sectors.
Level of government
National.
Description
The rules of competition are not yet implemented in Romania. The draft law on Protection of Competition has been submitted to the Parliament and is scheduled to be adopted during 1994.
The draft contains provisions with respect to anti-competitive behaviour, harmonized with the EC’s law on Competition.
Phase-out
31 December 1996.
Country: The Russian Federation
Sector
All energy sectors.
Level of government
The Federation.
Description
A comprehensive framework of anti-monopoly legislation has been created in the Russian Federation but other legal and organizational measures to prevent, limit or suppress monopolistic activities and unfair competition will have to be adopted and in particular in the energy sector.
Phase-out
1 July 2001.
Country: Slovenia
Sector
All energy sectors.
Level of government
National.
Description
Law on Protection of Competition adopted in 1993 and published in Official Journal No 18/93 treats anti-competitive conduct generally. The existing law also provides for conditions for the establishment of competition authorities. At present the main competition authority is the Office of Protection of Competition in the Ministry of Economic Relations and Development. With regard to importance of energy sector a separate law in this respect is foreseen and thus more time for full compliance is needed.
Phase-out
1 January 1998.
Country: Tajikistan
Sector
All energy sectors.
Level of government
National.
Description
In 1993 Tajikistan passed the law on Demonopolization and Competition. However, due to the difficult economic situation in Tajikistan, the jurisdiction of the law has been temporarily suspended.
Phase-out
31 December 1997.
Country: Turkmenistan
Sector
All energy sectors.
Level of government
National.
Description
Under the Ruling of the President of Turkmenistan No 1532 of 21 October 1993 the Committee on Restricting Monopolistic Activities has been etablished and is acting now, the function of which is to protect enterprises and other entities from monopoly conduct and practices and to promote the formation of market principles on the basis of the development of competition and entrepreneurship.
Further development of legislation and regulations is needed which would regulate anti-monopoly conduct of enterprises in the Economic Activity in the Energy Sector.
Phase-out
1 July 2001.
Country: Uzbekistan
Sector
All energy sectors.
Level of government
National.
Description
The law on Restricting Monopoly Activities has been adopted in Uzbekistan and has been in force since July 1992. However, the law (as is specified in article 1, paragraph 3) does not extend to the activities of enterprises in the energy sector.
Phase-out
1 July 2001.
Article 6(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 that 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.”
Country: Albania
Sector
All energy sectors.
Level of government
National.
Description
In Albania there are no established institutions to enforce the competition rules. Such institutions will be provided for in the law on the Protection of Competition which is planned to be finalized in 1996.
Phase-out
1 January 1999.
Sector
All energy sectors.
Level of government
National.
Description
Institutions to enforce the provisions of this paragraph have not been established in Armenia.
The laws on Energy and Protection of Competition are planned to include provisions to establish such institutions.
Phase-out
31 December 1997.
Country: Azerbaijan
Sector
All energy sectors.
Level of government
National.
Description
Anti-monopoly authorities shall be established after the adoption of anti-monopoly legislation.
Phase-out
1 January 2000.
Country: Belarus
Sector
All energy sectors.
Level of government
National.
Description
Anti-monopoly authorities shall be established after the adoption of anti-monopoly legislation.
Phase-out
1 January 2000.
Country: Georgia
Sector
All energy sectors.
Level of government
National.
Description
Laws on demonopolization are at present at the stage of elaboration in Georgia and that is why there are no competition authorities established yet.
Phase-out
1 January 1999.
Country: Kazakhstan
Sector
All energy sectors.
Level of government
National.
Description
An Anti-monopoly Committee has been established in Kazakhstan, but its activity needs improvement, both from legislative and organizational points of view, in order to elaborate an effective mechanism handling the complaints on anti-competitive conduct.
Phase-out
1 January 1998.
Country: Kyrgyzstan
Sector
All energy sectors.
Level of government
National.
Description
There is no mechanism in Kyrgyzstan to control the anti-competitive conduct and the relevant legislation. It is necessary to establish relevant anti-monopoly authorities.
Phase-out
1 July 2001.
Country: Moldova
Sector
All energy sectors.
Level of government
National.
Description
The Ministry of Economy is responsible for the control of competitive conduct in Moldova. Relevant amendments have been made to the law on Breach of Administrative Rules, which envisage some penalties for violating rules of competition by monopoly enterprises.
The draft law on Competition which is now at the stage of elaboration will have provisions on the enforcement of competition rules.
Phase-out
1 January 1998.
Country: Romania
Sector
All energy sectors.
Level of government
National.
Description
Institutions to enforce the provisions of this paragraph have not been established in Romania.
The Institutions charged with the enforcement of competition rules are provided for in the draft law on Protection of Competition which is scheduled to be adopted during 1994.
The draft also provides a period of nine months for enforcement, starting with the date of its publication.
According to the Europe Agreement establishing an association between Romania and the European Communities, Romania was granted a period of five years to implement competition rules.
Phase-out
1 January 1998.
Country: Tajikistan
Sector
All energy sectors.
Level of government
National.
Description
Tajikistan has adopted laws on Demonopolization and Competition, but institutions to enforce competition rules are in the stage of development.
Phase-out31
December 1997.
Country: Uzbekistan
Sector
All energy sectors.
Level of government
National.
Description
The law on Restricting Monopoly Activities has been adopted in Uzbekistan and has been in force since July 1992. However, the law (as is specified in article 1, paragraph 3) does not extend to the activities of the enterprises in the energy sector.
Phase-out
1 July 2001.
Article 7(4)
„In the event that Transit of Energy Materials and Products cannot be achieved on commercial terms by means of Energy Transport Facilities the Contracting Parties shall not place obstacles in the way of new capacity being established, except as may be otherwise provided in applicable legislation which is consistent with paragraph (1).”
Country: Azerbaijan
Sector
All energy sectors.
Level of government
National.
Description
It is necessary to adopt a set of laws on energy, including licensing procedures regulating transit. During a transition period it is envisaged to build and modernize power transmission lines, as well as generating capacities with the aim of bringing their technical level to the world requirements and adjusting to conditions of a market economy.
Phase-out
31December 1999.
Country: Belarus
Sector
All energy sectors.
Level of government
National.
Description
Laws on energy, land and other subjects are being worked out at present, and until their final adoption, uncertainty remains as to the conditions for establishing new transport capacities for energy carriers in the territory of Belarus.
Phase-out
31 December 1998.
Country: Bulgaria
Sector
All energy sectors.
Level of government
National.
Description
Bulgaria has no laws regulating Transit of Energy Materials and Products. An overall restructuring is ongoing in the energy sector, including development of institutional framework, legislation and regulation.
Phase-out
The transitional period of 7 years is necessary to bring the legislation concerning the Transit of Energy Materials and Products in full compliance with this provision.
1 July 2001.
Country: Georgia
Sector
All energy sectors.
Level of government
National.
Description
It is necessary to prepare a set of laws on the matter. At present there are substantially different conditions for the transport and transit of various energy sources in Georgia (electric power, natural gas, oil products, coal).
Phase-out
1 January 1999.
Country: Hungary
Sector
Electricity industry.
Level of government
N
ational.
Description
According to the current legislation establishment and operation of hig-voltage transmission lines is a state monopoly.
The creation of the new legal and regulatory framework for establishment, operation and ownership of high-voltage transmission lines is under preparation.
The Ministry of Industry and Trade has already taken the initiative to put forward a new Act on Electricity Power, that will have its impact also on the Civil Code and on the Act on Concession. Compliance can be achieved after entering in force of the new law on Electricity and related regulatory decrees.
Phase-out
31 December 1996.
Country: Poland
Sector
All energy sectors.
Level of government
National.
Description
Polish law on Energy, being in the final stage of co-ordination, stipulates for creating new legal regulations similar to those applied by free market countries (licenses to generate, transmit, distribute and trade in energy carriers). Until it is adopted by the Parliament a temporary suspension of obligations under this paragraph is required.
Phase-out
31 December 1995.
Article 9(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.”
Country: Azerbaijan
Sector
All energy sectors.
Level of government
National.
Description
Relevant legislation is at the stage of elaboration.
Phase-out
1 January 2000.
Country: Belarus
Sector
All energy sectors.
Level of government
National.
Description
Relevant legislation is at the stage of elaboration.
Phase-out
1 January 2000.
Country: Georgia
Sector
All energy sectors.
Level of government
National.
Description
Relevant legislation is at the stage of preparation.
Phase-out
1 January 1997.
Country: Kazakhstan
Sector
All energy sectors.
Level of government
National.
Description
The bill on Foreign Investments is at the stage of authorization approval with the aim to adopt it by the Parliament in autumn 1994.
Phase-out
1 July 2001.
Country: Kyrgyzstan
Sector
All energy sectors.
Level of government
National.
Description
Relevant legislation is currently under preparation.
Phase-out
1 July 2001.
Article 10(7) - Specific measures
„Each Contracting Party shall accord to Investments in its Area of Investors of another Contracting Party, 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.”
Country: Bulgaria
Sector
All energy sectors.
Level of government
N
ational.
Description
Foreign persons may not acquire property rights over land. A company with more than fifty per cent of foreign person’s share may not acquire property right over agricultural land.
Foreigners and foreign legal persons may not aquire property rights over land except by way of inheritance according to the law. In this case they have to make it over.
A foreign person may aquire property rights over buildings, but without property rights over the land.
Foreign persons or companies with foreign controlling participation must obtain a permit before performing the following activities:
- exploration, development and extraction of natural resources from the territorial sea, continental shelf or exclusive economic zone;
- acquisition of real estate in geographic regions designated by the Council of Ministers.
- The permits are issued by the Council of Ministers or by a body authorized by the Council of Ministers.
Phase-out
1 July 2001.
Article 14(1)d)
„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:
unspent earnings and other remuneration of personnel engaged from abroad in connection with that Investment;”
Country: Bulgaria
Sector
All energy sectors.
Level of government
National.
Description
Foreign nationals employed by companies with more than 50 per cent of foreign participation, or by a foreign person registered as sole trader or a branch or a representative office of a foreign company in Bulgaria, receiving their salary in Bulgarian leva, may purchase foreign currency not exeeding 70 per cent of their salary, including social security payments.
Phase-out
1 July 2001.
Country: Hungary
Sector
All energy sectors.
Level of government
National.
Description
According to the Act on Investments of Foreigners in Hungary, Article 33, foreign top managers, executive managers, members of the Supervisory Board and foreign employees may transfer their income up to 50 per cent of their aftertax earnings derived from the company of their employment through the bank of their company.
Phase-out
The phase out of this particular restriction depends on the progress Hungary is able to make in the implementation of the foreign exchange liberalization programme whose final target is the full convertibility of the Forint. This restriction does not create barriers to foreign investors. Phase-out is based on stipulations of Article 32.
1 July 2001.
Article 20(3)
„Each Contracting Party shall designate one or more enquiry points to which requests for information about the above mentioned laws, regulations, judicial decisions and administrative rulings may be addressed and shall communicate promptly such designation to the Secretariat which shall make it available on request.”
Country: Armenia
Sector
All energy sectors.
Level of government
National.
Description
In Armenia there are no official enquiry points yet to which requests for information about the relevant laws and other regulations could be addressed. There is no information centre either. There is a plan to establish such a centre in 1994-1995. Technical assistance is required.
Phase-out
31 December 1996.
Country: Azerbaijan
Sector
All energy sectors.
Level of government
National.
Description
There are no official enquiry points so far in Azerbaijan to which requests for information about relevant laws and regulations could be addressed. At present such information is concentrated in various organizations.
Phase-out
31 December 1997.
Country: Belarus
Sector
All energy sectors.
Level of government
National.
Description
Official enquiry offices which could give information on laws, regulations, judicial decisions and administrative rulings do not exist yet in Belarus. As far as the judicial decisions and administrative rulings are concerned there is no practice of their publishing.
Phase-out
31 December 1998.
Country: Kazakhstan
Sector
All energy sectors.
Level of government
National.
Description
The process of establishing enquiry points has begun. As far as the judicial decisions and administrative rulings are concerned they are not published in Kazakhstan (except for some decisions made by the Supreme Court), because they are not considered to be sources of law. To change the existing practice will require a long transitional period.
Phase-out
1 July 2001.
Country: Moldova
Sector
All energy sectors.
Level of government
National.
Description
It is necessary to establish enquiry points.
Phase-out
31 December 1995.
Country: The Russian Federation
Sector
All energy sectors.
Level of government
The Federation and the Republics constituting Federation.
Description
No official enquiry points exist in the Russian Federation as of now to which requests for information about relevant laws and other regulation acts could be addressed. As far as the judicial decisions and administrative rulings are concerned they are not considered to be sources of law.
Phase-out
