TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 166

ARTICLE 7

CONFIDENTIAL

5

10.

Article 7(1) is identical to Article 7 of the Hong

Kong model text.

initialled

text)

Article 3 of the

A sub-paragraph (Article 7(2) of the

providing for standard exceptions to initialled Agreement was added to cover

the concerns of the Italian delegation in relation to

customs

unions,

economic·

unions,

common

market

associations, free trade areas, regional or subregional agreements, International multilateral economic agreements, or similar agreements in relation to taxation or facilitation of cross-border trade.

ARTICLE 8

11.

relation

to

designated agency

in

This is a new article, covering subrogation in insurance by a Contracting Party or its

respect of an investment in the area of the other Contracting Party. Subrogation provisions are a common feature of agreements on investment promotion and protection. The article was added at the request of the

Italian side.

The text of the article was based, at the suggestion of the Hong Kong delegation, on a similar provision in the IPPA between the People's Republic of China and the United Kingdom. It is also made clear at the end of Article 8 (3) that any payment received shall be freely transferable.

ARTICLE 9

12.

This Article is very similar to Article 8 of the Hong Kong model text.

At the request of the Italian delegation, the last sentence was elaborated to make clear that "procedures for settlement" may include recourse to

courts or to other forms of arbitration. The

domestic

acronym

"UNCITRAL"

was

added

in

brackets atter the

CONFIDENTIAL