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12970 Haiti - Investment Incentive Agreement


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12970

 

 

INVESTMENT GUARANTIES

 

 

 

 

Agreement Between the
UNITED STATES OF AMERICA
and HAITI

 


Signed at Port-au-Prince
June 29, 1998

 

 

 

 


 

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

 

HAITI

Investment Guaranties

Agreement signed at Port-au-Prince June 29, 1998;
Entered into force June 29, 1998.

INVESTMENT INCENTIVE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF HAITI
THE GOVERNMENT OF THE UNITED STATES OF AMERICA and THE GOVERNMENT OF
HAITI;
AFFIRMING their common desire to encourage economic activities in Haiti that promote
the development of the economic resources and productive capacities of Haiti; and
RECOGNIZING that this objective can be promoted through investment support provided
by the Overseas Private Investment Corporation ("OPIC"), a development institution and an
agency of the United States of America, in the form of investment insurance and reinsurance, debt
and equity investments and investment guaranties;
HAVE AGREED as follows:
ARTICLE 1
As used in this Agreement, the following terms have the meanings herein provided. The
term "Investment Support" refers to any debt or equity investment, any investment guaranty and
any investment insurance or reinsurance which is provided by the Issuer in connection with a
project in the territory of Haiti. The term "Issuer" refers to OPIC and any successor agency of
the United States of America, or any agent designated by OPIC and any successor agency of the
United States of America to represent them. The term "Taxes" means all present and future taxes,
levies, imposts, stamps, duties and charges imposed in Haiti and all liabilities with respect thereto.
-2-
ARTICLE 2
(a) The Issuer shall not be subject to regulation under the laws of Haiti applicable to
insurance or financial organizations.
(b) All operations and activities undertaken by the Issuer in connection with any
Investment Support, and all payments, whether of interest, principal, fees, dividends, premiums
or the proceeds from the liquidation of assets or of any other nature, that are made, received or
guaranteed by the Issuer in connection with any Investment Support shall be exempt from Taxes.
The Issuer shall not be subject to any Taxes in connection with any transfer, succession or other
acquisition which occurs pursuant to paragraph (c) of this Article or Article 3(a) hereof. Any
project in connection with which Investment Support has been provided shall be accorded tax
treatment no less favorable than that accorded to projects benefiting from the investment support
programs of any other national or multilateral development institution which operates in Haiti.
(c) If the Issuer makes a payment to any person or entity, or exercises its rights as a
creditor or subrogee, in connection with any Investment Support, the Government of Haiti shall
recognize the transfer to, or acquisition by, the Issuer of any cash, accounts, credits, instruments
or other assets in connection with such payment or the exercise of such rights, as well as the
succession of the Issuer to any right, title, claim, privilege or cause of action existing, or which
may arise, in connection therewith.
(d) With respect to any interests transferred to the Issuer or any interests to which the
Issuer succeeds under this Article, the Issuer shall assert no greater rights than those of the person
or entity from whom such interests were received, provided that nothing in this Agreement shall
limit the right of the Government of the United States of America to assert a claim under
international law in its sovereign capacity, as distinct from any rights it may have as the Issuer
pursuant to paragraph (c) of this Article.
ARTICLE 3
(a) Amounts in the currency of Haiti, including cash, accounts, credits, instruments
or otherwise, acquired by the Issuer upon making a payment, or upon the exercise of its rights as
a creditor, in connection with any Investment Support provided by the Issuer for a project in Haiti,
shall be accorded treatment in the territory of Haiti no less favorable as to use and conversion than
the treatment to which such funds would have been entitled in the hands of the person or entity
from which the Issuer acquired such amounts.
- 3 -
(b) Such currency and credits may be transferred by the Issuer to any person or entity
and upon such transfer shall be freely available for use by such person or entity in the territory of
Haiti in accordance with its laws.
ARTICLE 4
(a) Any dispute between the Government of the United States of America and the
Government of Haiti regarding the interpretation of this Agreement or which, in the opinion of
either party hereto, presents a question of international law arising out of any project or activity
for which Investment Support has been provided shall be resolved, insofar as possible, through
negotiations between the two Governments. If, six months following a request for negotiations
hereunder, the two Governments have not resolved the dispute, the dispute, including the question
of whether such dispute presents a question of international law, shall be submitted, at the
initiative of either Government, to an arbitral tribunal for resolution in accordance with paragraph
(b) of this Article.
(b) The arbitral tribunal referred to in paragraph (a) of this Article shall be established
and shall function as follows:
(i) Each Government shall appoint one arbitrator. These two arbitrators shall
by agreement designate a president of the tribunal who shall be a citizen of a third state and
whose appointment shall be subject to acceptance by the two Governments. The arbitrators
shall be appointed within three months, and the president within six months, of the date
of receipt of either Government's request for arbitration. If the appointments are not made
within the foregoing time limits, either Government may, in the absence of any other
agreement, request the Secretary-General of the International Centre for the Settlement of
Investment Disputes to make the necessary appointment or appointments. Both
Governments hereby agree to accept such appointment or appointments.
(ii) Decisions of the arbitral tribunal shall be made by majority vote and shall
be based on the applicable principles and rules of international law. Its decision shall be
final and binding.
(iii) During the proceedings, each Government shall bear the expense of its
arbitrator and of its representation in the proceedings before the tribunal, whereas the
expenses of the president and other costs of the arbitration shall be paid in equal parts by
the two Governments. In its award, the arbitral tribunal may reallocate expenses and costs
between the two Governments.
- 4 -
(iv) In all other matters, the arbitral tribunal shall regulate its own procedures.
ARTICLE 5
(a) This Agreement shall enter into force on the date of execution hereof.
(b) This Agreement shall continue in force until six months from the date of a receipt
of a note by which one Government informs the other of an intent to terminate this Agreement.
In such event, the provisions of this Agreement shall, with respect to Investment Support provided
while this Agreement was in force, remain in force so long as such Investment Support remains
outstanding, but in no case longer than twenty years after the termination of this Agreement.
(c) Upon entry into force, this Agreement shall supersede the agreement on
investment guaranties between the Government of the United States of America and the
Government of Haiti entitled Economic Cooperation Guaranties under Public Law 472, 80th
Congress, as Amended effected by exchange of notes signed at Washington March 13 and
April 2, 1953, entered into force April 2, 1953, Haiti Investment Guaranties, agreement
modifying the agreement of March 13 and April 2, 1953, effected by exchange of notes signed
at Port-au-Prince October 7 and 14, 1975, entered into force April 4, 1978, effective
November 4, 1976, and modification by exchange of notes between the Embassy of the United
States of America and the Ministry of Foreign Affairs, U.S. Embassy no. 48 of February 5,
1985 and no. 218 dated June 20, 1985 and Ministry of Foreign Affairs no. 710 dated May 27,
1985 and September 6, 1985. Any matter concerning Haiti relating to support by OPIC of
investments in the territory of Haiti prior to the entry into force of this Agreement shall be
resolved under the terms of this Agreement.
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments,
have signed this Agreement.
DONE at Port-au-Prince, Haiti, on the 29 day of June, 1998, in duplicate, in the English
and French languages, both texts being equally authentic.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA HAITI



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