TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 85

ARTICLE 7

5

LO

;

10.

Article 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

the Italian delegation in relation to

economic unions,

Kong model text.

initialled text)

Article 3 of the

the concerns of

customs

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.

This is a new article, covering subrogation in

relation to insurance by a Contracting Party or its

designated agency in 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 10

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

domestic

acronym

courts or to

other forms

"UNCITRAL"

was

added in

of arbitration. The

brackets after the