TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 175

ARTICLE 7

CONFIDENTIAL

5

10.

Article

Kong model text.

initialled

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

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

providing for standard exceptions to initialled Agreement was added to cover

text)

Article 3 of the

the concerns of the Italian delegation in relation to

economic· unions,

customs

unions,

Common

market

associations, free trade areas, regional or subregional agreements, International multilateral economic agreements, similar agreements in relation to taxation or

facilitation of cross-border trade.

or

ARTICLE 8

11.

relation

This 18 a new article, covering subrogation in to insurance by a Contracting Party or its designated agency in respect of an investment in the area 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

of

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.

Hong Kong model text.

delegation, the

This Article is very similar to Article 8 of the

At the request of the Italian

last sentence was elaborated to make clear

for settlement” may include recourse to

courts or to other forms of arbitration. The

"UNCITRAL"

brackets atter the

that "procedures

domestic

acronym

was

added in

CONFIDENTIAL