Romania Bilateral Investment Treaty
May 28, 1992; Entered into Force January 15, 1994
CONGRESS 2d Session
Treaty Doc. 102-36
WITH ROMANIA CONCERNING THE RECIPROCAL ENCOURAGEMENT AND PROTECTION OF
PRESIDENT OF THE UNITED STATES
TREATY BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF ROMANIA CONCERNING THE RECIPROCAL ENCOURAGEMENT AND
PROTECTION OF INVESTMENT, WITH PROTOCOL AND RELATED EXCHANGE OF LETTERS,
SIGNED AT BUCHAREST ON MAY 28, 1992
3, 1992.-Treaty was read the first time and, together with the
accompanying papers, referred to the Committee on Foreign Relations and
ordered to be printed for the use of the Senate
GOVERNMENT PRINTING OFFICE
LETTER OF TRANSMITTAL
WHITE House, August 3,1992.
Senate of the United States:
view to receiving the advice and consent of the Senate to ratification,
I transmit herewith the Treaty Between the Government of the United
States of America and the Government of Romania Concerning the
Reciprocal Encouragement and Protection of Investment, with Protocol and
related exchange of letters, signed at Bucharest on May 29, 1992. I
transmit also, for the information of the Senate, the report of the
Department of State with respect to this treaty.
treaty will help to encourage U.S. private sector involvement in the
Romanian economy by establishing a favorable legal framework for U.S.
investment in Romania. The treaty is fully consistent with U.S. policy
toward international investment. A specific tenet, reflected in this
treaty, is that U.S. investment abroad and foreign investment in the
United States should receive fair, equitable, and nondiscriminatory
treatment. Under this treaty, the Parties also agree to international
law standards for expropriation and expropriation compensation; free
transfers of funds associated with investments; and the option of the
investor to resolve disputes with the host government through
recommend that the Senate consider this treaty as soon as possible, and
give its advice and consent to ratification of the treaty, with protocol
and related exchange of letters, at an early date.
DEPARTMENT OF STATE,
July 28, 1992..
President: I have the honor to submit to you the Treaty Between the
Governmentof the United States of America and the Government of Romania
Concerning the Reciprocal Encouragement and Protection of Investment,
with Protocol and related exchange of letters, signed at Bucharest on
May 28, 1992. I recommend that this Treaty, with Protocol and exchange
of letters, be transmitted to the Senate for its advice and consent to
the third U.S. treaty containing investment protections with a former
Communist country of Central or Eastern Europe to be signed, following
the U.S.-Poland treaty concerning business and economic relations signed
March 21, 1990, and the bilateral investment treaty (BIT) with the Czech
and Slovak Federal Republic signed October 22, 1991. This Treaty will
assist Romania in its transition to a market economy by creating
favorable conditions for U.S. investment, helping to attract such
investment and thus strengthening the development of the private sector.
It is U.S. policy, however, to advise potential treaty partners that
conclusions of a BIT does not necessarily result in immediate increases
in private U.S. investment flows.
has previously signed investment agreements with a number of West
European countries, including Italy and Greece. This Treaty, however, is
more comprehensive than the European BITS.
United States has also signed BITs with Argentina, Bangladesh, Cameroon,
the Congo, the Czech and Slovak Federal Republic, Egypt, Grenada, Haiti,
Kazakhstan, Morocco, Panama, Russia, Senegal, Sri Lanka, Tunisia, Turkey
and Zaire; and a treaty with Poland containing the BIT elements. The
Office of the United States Trade Representative and the Department of
State jointly lead BIT negotiations, with assistance from the
Departments of Commerce and Treasury.
UNITED STATES-ROMANIA TREATY
Treaty with Romania satisfies the principal BIT objectives, which are:
Investments of nationals and companies of either Party in the territory
of the other Party (investments) receive the better of national
treatment or most-favored-nation treatment (MFN) subject to certain
specified exceptions, both on establishment and thereafter;
are guaranteed freedom from performance requirements which include
commitments to use local products or to export local goods.
which are investments may hire top managers of their choice, regardless
Expropriation can occur only in accordance with international law
standards: in a nondiscriminatory manner; for a public purpose; and upon
payment of prompt, adequate, and effective compensation;
are guaranteed the unrestricted transfer of funds in a freely usable
and companies of either Party, in investment disputes with the host
government, have access to binding international arbitration, without
first resorting to domestic courts.
below are significant provisions in the U.S.-Romania Treaty which either
differ from some of our past BITs or which warrant special mention.
allow for sectoral exceptions to national and MFN treatment. The U.S.
exceptions are designed to protect governmental regulatory interests and
to accommodate the derogations from national treatment and, in some
cases, MFN treatment in existing federal law. The U.S. exceptions from
national treatment include, among other sectors, air transportation,
shipping, banking, ownership of real property, mining on the public
domain, telecommunications, energy and power production, and insurance.
U.S.exceptions from both national and MFN treatment include ownership of
real property, mining on the public domain, maritime service and
maritime-related services, and primary dealership in United States
government securities. Except for ownership of real property, MFN
exceptions are based on reciprocity, provisions in existing federal
Romanian exceptions to national treatment include, among other sectors,
air transportation, banking, insurance, legal services, ownership and
use of real estate, tobacco, and alcoholic beverages, ownership and
exploitation of natural resources, and energy production and
transmission. Romanian exceptions to MFN treatment are mining on the
public domain, maritime services and maritime-related services, and
river and road transport.
BIT negotiations, the Romanian Government representatives stated that
some of the above sectoral exceptions are not based on existing laws
because many laws relating to a market economy have yet to be enacted.
The Romanians requested these exceptions in order to preserve their
legislature's ability to enact the intended laws. The annex therefore
includes a paragraph stating that application of the Romanian exceptions
to national and MFN treatment, if and when invoked, will be limited to
the extent provided in Romanian legislation.
Treaty guarantees national treatment on investments of U.S. nationals
and companies in the privatization of government-owned properties in
Government of Romania is currently undertaking steps to make the
national currency, the leu, fully convertible at a market rate of
exchange. The Romanian side in the BIT negotiations stated that, given
this policy, they could agree to the transfers provisions of the BIT,
i.e., that investment-related transfers shall be made without delay in a
freely usable currency at the market rate of exchange on the date of
transfer. Nevertheless, delays are often experienced in converting leu
profits and transferring them out of the country. For this reason, the
Protocol states that, without prejudice to the transfer rights in the
BIT, Romania shall endeavor, during its transition to full
convertibility of the leu, to improve the efficiency of its transfer
Treaty, consistent with the model BIT, does not oblige a Party to extend
to the other Party's investments the advantages accorded to
third-country investments by virtue of binding obligations that derive
from full membership in a free trade area or customs union. The Protocol
(Section 2) confirms that such investment-related obligations may arise
from economic relationships that include free trade areas and customs
unions, notwithstanding that these relationships are not limited
exclusively to matters of free trade and customs.
with Romania contains several provisions, also found in the other U.S.
BITs with the countries of Eastern Europe, designed to resolve problems
that U.S. business traditionally has faced in the centrally-controlled,
non-market economies of Central and Eastern Europe, and which may
continue to impede U.S. investments during the transition to a market
provision is a guarantee that nationals and companies of either Party
receive the better of national or MFN treatment with respect to an
expanded and detailed list of activities associated with their
investments. These include, as defined in Article 1 (1)(3): access to
registrations, licenses, and permits; access to financial institutions
and credit markets; access to their funds held in financial
institutions; the importation and installation of business equipment;
advertising and the conduct of market studies; the appointment of
commercial representatives; direct marketing; access to public
utilities; and access to raw materials.
Treaty also provides, in a related exchange of letters, that Romania
will designate an office to assist U.S. nationals and companies overcome
problems relating to lack of knowledge about the Romanian domestic
system and bureaucracy. Romania has designated the Romanian Development
Agency for this purpose. This agency's tasks will include providing
up-to-date information on business and investment regulations,
collecting and disseminating information regarding investment projects
and financing, and coordinating with other Romanian agencies, at all
levels, to facilitate U.S. investment.
difference between this Treaty and the U.S. prototype BIT results from
the request of the Romanian Government. Since Romanian law recognizes a
difference between a Romanian national (who may be a Romanian ethnic
person without Romanian citizenship) and a Romanian citizen, the
Protocol states that for purposes of this treaty, a Romanian "national"
means a Romanian citizen.
establishes (Article XIII (1)) that the Treaty applies to investments
existing at the time of entry into force of the Treaty as well as to new
investments. Further, Section 4 of the Protocol confirms "'*** that
the provisions of this Treaty do not bind either Party in relation to
any act or fact which took place, or any situation which ceased to
exist, before the date of the entry into force of this Treaty."
U.S. Government agencies which negotiated the Treaty join in
recommending that it be transmitted to the Senate at an early date.
GOVERNMENT OF THE UNITED STATES OF AMERICA
GOVERNMENT OF ROMANIA
CONCERNING THE RECIPROCAL ENCOURAGEMENT
PROTECTION OF INVESTMENT
Government of the United States of America and the Government of Romania
(hereinafter referred to as the 'Parties');
to promote greater economic cooperation between them, with respect to
investment by nationals and companies of one Party in the, territory of
the other Party;
Recognizing that agreement upon the treatment to be accorded such
investment will stimulate the flow of private capital and the economic
development of the Parties;
that fair and equitable treatment of investment is desirable in order to
maintain a stable framework for investment and maximum effective
utilization of economic resources;
Recognizing that the development of economic and business ties can
contribute to the well-being of workers in both Parties and promote
respect for internationally recognized worker rights; and
resolved to conclude a Treaty concerning the reciprocal encouragement
and protection of investment;
agreed as follows:
1. For the
purposes of this Treaty,
means every kind of investment in the territory of one Party owned or
controlled directly or indirectly by nationals or companies of the other
Party, such as equity, debt, and service and investment contracts; and
movable and immovable, property and tangible and intangible property,
including rights such as mortgages, liens and pledges;
company or shares of stock or other interests in a company or interests
in the assets thereof;
claim to money or a claim to performance having economic value, and
associated with an investment;
intellectual and industrial property which includes, inter alia, rights
and artistic works, including sound recordings;
inventions in all fields of human endeavor;
semiconductor mask works;
secrets, know-how, and confidential business information; and
trademarks, service marks, and trade names; and
right conferred by law or contract, including concessions to to search
for , extract, or exploit natural resources, and any licenses and
permits pursuant to law;
'company' of a Party means any kind of corporation, company,
association, partnership, or other organization, legally constituted
under the laws and regulations of a Party or a political subdivision
thereof whether or not organized for pecuniary gain, or privately or
governmentally owned or controlled;
of a Party means a natural person who is a national of a Party under its
means an amount derived from or associated with an investment
irrespective of the form in which it is paid, including profit;
dividend; interest; capital gain; royalty payment; management, technical
assistance or other fee; or returns in kind;
activities" include, inter alia, the organization, control,
operation, maintenance and disposition of companies, branches, agencies,
offices, factories or other facilities for the conduct of business, and
making, performance and enforcement of contracts;
acquisition, use, protection and disposition of property of all kinds
including intellectual property rights;
borrowing of funds;
purchase, issuance, and sale of equity shares and other securities;
purchase of foreign exchange for imports;
granting of franchises or rights under licenses;
registrations, licenses, permits and other approvals (which shall in any
event be issued expeditiously);
financial institutions and credit markets;
their funds held in financial institutions;
importation and installation of equipment necessary for the normal
conduct of business affairs, including, but not limited to, office
equipment and automobiles, and the export of any equipment and
automobiles so imported;
dissemination of commercial information;
conduct of market studies;
appointment of commercial representatives, including agents, consultants
and distributors and their participation in trade fairs and promotion
marketing of goods and services, including through internal distribution
and marketing systems, as well as by advertising and direct contact with
individuals and companies;
public utilities, public services and commercial rental space at
nondiscriminatory prices, if the prices are set or controlled by the
raw materials, inputs and services of all types at nondiscriminatory
prices, if the prices are set or controlled by the government.
means the territory of the United States or Romania, including the
territorial sea established in accordance with international law as
reflected in the 1982 United Nations Convention on the Law of the Sea.
This Treaty also applies in the seas and seabed adjacent to the
territorial sea in which the United States or Romania has sovereign
rights or jurisdiction in accordance with international law as reflected
in the 1982 United Nations Convention on the Law of the Sea.
Party reserves the right to deny to any company the advantages of this
Treaty if nationals of any third country control such company and, in
the case of a company of the other Party, that company has no
substantial business activities in the territory of the other Party or
is controlled by nationals of a third country with which the denying
Party does not maintain normal economic relations.
alteration of the form in which assets are invested or reinvested shall
not affect their character as investment.
Party shall permit and treat investment, and activities associated
therewith, on a basis no less favorable than that accorded in like
situations to investment or associated activities of its own nationals
or companies, or of nationals or companies of any third country,
whichever is the most favorable, subject to the right of each Party to
make or maintain exceptions falling within one of the sectors or matters
listed in the Annex to this Treaty. Each Party agrees to notify the
other Party before or on the date of entry into force of this Treaty of
all such laws and regulations of which it is aware concerning the
sectors or matters listed in the Annex. Moreover, each Party agrees to
notify the other of any future exception with respect to the sectors or
matters listed in the Annex, and to limit such exceptions to a minimum.
Any future exception by either Party shall not apply to investment
existing in that sector or matter at the time the exception becomes
effective. The treatment accorded pursuant to any exceptions shall,
unless specified otherwise in the Annex, be not less favorable than that
accorded in like situations to investments and associated activities of
nationals or companies of any third country.
Investment shall at all times be accorded fair and equitable treatment,
shall enjoy full protection and security and shall in no case be
accorded treatment less than that required by international law.
Neither Party shall in any way impair by arbitrary or discriminatory
measures the management, operation, maintenance, use, enjoyment,
acquisition, expansion, or disposal of investments. For purposes of
dispute resolution under Articles VI and VII, a measure may be arbitrary
or discriminatory notwithstanding the fact that a party has had or has
exercised the opportunity to review such measure in the courts or
administrative tribunals of a Party.
Party shall observe any obligation it may have entered into with regard
Subject to the laws relating to the entry and sojourn' of aliens,
nationals of either Party shall be permitted to enter and to remain in
the territory of the other Party for the purpose of establishing,
developing, administering or advising on the operation of an investment
to which they, or a company of the first Party that employs them, have
committed or are in the process of committing a substantial amount of
capital or other resources.
companies which are legally constituted under the applicable laws or
regulations of one Party, and which are investments, shall be permitted
to engage top managerial personnel of their choice, regardless of
Neither Party shall impose performance requirements as a condition of
establishment, expansion or maintenance of investments, which require or
enforce commitments to export goods produced, or which specify that
goods or services must be purchased locally, or which impose any other
Party shall provide effective means of asserting claims and enforcing
rights with respect to investment, investment agreements, and investment
Party shall make public all laws, regulations, administrative practices
and procedures, and adjudicatory decisions that pertain to or affect
treatment accorded by the Government of the United States of America to
investments and associated activities of nationals and companies of
Romania under the provisions of this Article shall in any State,
Territory, or possession of the United States cf America be no less
favorable than the treatment accorded therein to investments and
associated activities of nationals of the United States of America
resident in, and companies legally constituted under the laws and
regulations of other States, Territories or possessions of the United
States of America.
most favored nation provisions of this Article shall not apply to
advantages accorded by either Party to nationals or companies of any
third country by virtue of:
Party's binding obligations that derive from full membership in a free
trade area or customs union; or
Party's binding obligations under any multilateral international
agreement under the framework of the General Agreement on Tariffs and
Trade that enters into force subsequent to the signature of this Treaty.
Investments shall not be expropriated or nationalized either directly or
indirectly through measures tantamount to expropriation or
nationalization ('expropriation') except: for a public purpose; in a
nondiscriminatory manner; upon payment of prompt, adequate and effective
compensation; and in accordance with due process of law and the general
principles of treatment provided for in Article II(2). Compensation
shall be equivalent to the fair market value of the expropriated
investment immediately before the expropriatory action was taken or
became known, whichever is earlier; be calculated in any freely usable
currency on the basis of the prevailing market rate of exchange at that
time; be paid without delay; include interest at a commercially
reasonable rate from the date of expropriation; be fully realizable; and
be freely transferable.
national or company of either Party that asserts that all or part of its
investment has been expropriated shall have a right to prompt review by
the appropriate judicial or administrative authorities of the other
Party to determine whether any such expropriation has occurred and, if
so, whether such expropriation, and any associated compensation,
conforms to the principles of international law.
Nationals or companies of either Party whose investments suffer losses
in the territory of the other Party owing to war or other armed
conflict, revolution, state of national emergency, insurrection, civil
disturbance or other similar events shall be accorded treatment by such
other Party no less favorable than that accorded to its own nationals or
companies or to nationals or companies of any third country, whichever
is the most favorable treatment, as regards any measures it adopts in
relation to such losses.
Party shall permit all transfers related to an investment to be made
freely and without delay into and out of its territory. Such transfers
include: (a) returns; (b) compensation pursuant to Article 111; (c)
payments arising out of an investment dispute; (d) payments made under a
contract, including amortization of principal and accrued interest
payments made pursuant to a loan agreement; (e) proceeds from the sale
or liquidation of all or any part of an investment; and (f) additional
contributions to capital for the maintenance or development of an
Transfers shall be made in a freely usable currency calculated at the
prevailing market rate of exchange on the date of transfer with respect
to spot transactions in the currency to be transferred.
Notwithstanding the provisions of paragraphs I and 2, either Party may
maintain laws and regulations (a) requiring reports of currency
transfer; and (b) imposing income taxes by such means as a withholding
tax applicable to dividends or other transfers. Furthermore, either
Party may protect the rights of creditors, or ensure the satisfaction of
judgments in adjudicatory proceedings, through the equitable,
nondiscriminatory and good faith application of its law.
Parties agree to consult promptly, on the request of either, to resolve
any disputes in connection with the Treaty, or to discuss any matter
relating to the interpretation or application of the Treaty.
purposes of this Article, an investment dispute a dispute between a
Party and a national or company of the other Party arising out of or
relating to (a) an investment agreement between that Party and such
national or company; (b) an investment authorization granted by that
Party's foreign investment authority to such national or company; or (c)
an alleged breach of any right conferred or created by this Treaty with
respect to an investment.
2. In the
event of an investment dispute, the parties to the dispute should
initially seek a resolution through consultation and negotiation, wbicb
may include the use of non-binding third-party procedures such as
conciliation. If the dispute cannot be settled amicably, the national or
company concerned may choose to submit the dispute for resolution:
the courts or administrative tribunals of the Party that is a party to
the dispute; or
accordance with any applicable, previously agreed dispute-settlement
accordance with the terms of paragraph 3.
Provided that the national or company co ncerned has not submitted the
dispute for resolution under paragraph 2 (a) or (b) and that six months
have elapsed from the date on which the dispute arose, the national or
company concerned may choose to consent in writing to the submission of
the dispute for settlement by binding arbitration:
(i) to the
International Centre for the Settlement of Investment Disputes
('Centre') established by the Convention on the Settlement of Investment
Disputes between states and Nationals of other States, done at
Washington, March 18, 1965 ('ICSID Convention'), provided that the Party
is a party to such Convention; or
the Additional Facility of the Centre, if the Centre is not available;
accordance with the Arbitration Rules of the United Nations Commission
on International Trade Law (UNCITRAL); or
any other arbitration institution, or in accordance with any other
arbitration rules, as may be mutually agreed between the parties to the
the national or company concerned has so consented, either party to the
dispute may initiate arbitration in accordance with the choice so
specified in the consent.
Party hereby consents to the submission of any investment dispute for
settlement by binding arbitration in accordance with the choice
specified in the written consent of the national or company under
paragraph 3. Such consent, together with the written consent of the
national or company when given under paragraph 3 shall satisfy the
written consent of the parties to the dispute for purposes of Chapter II
of the ICSID Convention (Jurisdiction of the Centre) and for purposes of
the Additional Facility Rules; and (b) an 'agreement in writing' for
purposes of Article II of the U nited Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, done at New
York, June 10, 1958 ("New York Convention").
arbitration under paragraph 3(a)(ii), (iii) or (iv) of this Article
shall be held in a state that is a party to the New York Convention.
arbitral award rendered pursuant to this Article shall be final and
binding on the parties to the dispute. Each Party undertakes to carry
out without delay the provisions of any such award and to provide in its
territory for its enforcement.
7. In any
proceeding involving an investment dispute, a Party shall not assert, as
a defense, counterclaim, right of set-off or otherwise, that the
national or company concerned has received or will receive, pursuant to
an insurance or guarantee contract, indemnification or other
compensation for all or part of its alleged damages.
purposes of an arbitration held under paragraph 3 of this Article, any
company legally constituted under the applicable laws and regulations of
a Party or a political subdivision thereof but that, immediately before
the occurrence of the event or events giving rise to the dispute, was an
investment of nationals or companies of the other Party, shall be
treated as a national or company of such other Party in accordance with
Article 25(2)(b) of the ICSID Convention.
dispute between the Parties concerning the interpretation or application
of the Treaty which is not resolved through consultations or other
diplomatic channels, shall be submitted, upon the request of either
Party, to an arbitral tribunal for binding decision in accordance with
the applicable rules of international law. In the absence of an
agreement by the Parties to the contrary, the arbitration rules of the
United Nations Commission on International Trade Law (UNCITRAL), except
to the extent modified by the Parties or by the arbitrators, shall
two months of receipt of a request, each Party shall appoint an
arbitrator. The two arbitrators shall select a third arbitrator as
Chairman, who is a national of a third State. The UNCITRAL Rules for
appointing members of three member panels shall apply mutatis mutandis
to the appointment of the arbitral panel except that the appointing
authority referenced in those rules shall be the Secretary General of
the Permanent Court of Arbitration.
otherwise agreed, all submissions shall be made and all hearings shall
be completed within six months of the date of selection of the third
arbitrator, and the Tribunal shall render its decisions within two
months of the date of the final submissions or the date of the closing
of the hearings, whichever is later.
Each Party shall bear the costs of its own representation in the
costs and expenses incurred by the Chairman, the other arbitrators, and
other costs of the proceedings shall be paid for equally by the Parties.
The Tribunal may, however, at its discretion, direct that a higher
proportion of such costs be paid by one of the Parties.
provisions of Article VI and VII shall not apply to a dispute arising
(a) under the export credit, guarantee or insurance programs of the
Export-Import Bank of the United States or (b) under other official
credit, guarantee or insurance arrangements pursuant to which the
Parties have agreed to other means of settling disputes.
Treaty shall not derogate from:
and regulations, administrative practices or procedures, or
administrative or adjudicatory decisions of either Party;
international legal obligations; or
obligations assumed by either Party, including those contained in an
investment agreement or an investment authorization,
entitle investments or associated activities to treatment more favorable
than that accorded by this Treaty in like situations.
Treaty shall not preclude the application by either Party of measures
necessary for the maintenance of public order, the fulfillment of its
obligations with respect to the maintenance or restoration of
international peace or security, or the protection of its own essential
Treaty shall not preclude either Party from prescribing special
formalities in connection with the establishment of investments, but
such formalities shall not impair the substance of any of the rights set
forth in this Treaty.
respect to its tax policies, each Party should strive to accord fairness
and equity in the treatment of investment of nationals and companies of
the other Party.
Nevertheless, the provisions of this Treaty, and in particular Article
VI and VII, shall apply to matters of taxation only with respect to the
expropriation, pursuant to Article III;
transfers, pursuant to Article IV; or
observance and enforcement of terms of an investment agreement or
authorization as referred to in Article VI(l)(a) or (b), to the extent
they are not subject to the dispute settlement provisions of a
Convention for the avoidance of double taxation between the two Parties,
or have been raised under such settlement provisions and are not
resolved within a reasonable period of time.
Treaty shall apply to the political subdivisions of the Parties.
Treaty shall enter into force thirty days after the date of exchange of
instruments of ratification. It shall remain in force for a period of
ten years and shall continue in force unless terminated in accordance
with paragraph 2 of this Article. It shall apply to investments existing
at the time of entry into force as well as to investments made or
Party may, by giving one year's written notice to the other Party,
terminate this Treaty at the end of the initial ten year period or at
any time thereafter.
respect to investments made or acquired prior to the date of termination
of this Treaty and to which this Treaty otherwise applies, the
provisions of all of the other Articles of this Treaty shall thereafter
continue to be effective for a further period of ten years from such
date of termination.
annex, protocol and side letter shall form an integral part of the
WITNESS WHEREOF, the respective plenipotentiaries have signed this
duplicate at Bucharest on the twenty-eighth day of May 1992, in the
English and Romanian languages, both texts being equally authentic.
GOVERNMENT OF THE UNITED STATES OF AMERICA
GOVERNMENT OF ROMANIA:
Government of the United States reserves the right to make or maintain
limited exceptions to national treatment, as provided in Article II,
paragraph 1, in the sectors or matters it has indicated below:
transportation; ocean and coastal shipping; banking; insurance;
government grants; government insurance and loan programs; energy and
power production; customs house brokers; ownership of real property;
ownership and operation of broadcast or common carrier radio and
television stations; ownership of shares in the Communications Satellite
Corporation; the provision of common carrier telephone and telegraph
services; the provision of submarine cable services; use of land and
natural resources; mining on the public domain; maritime services and
maritime-related services; and primary dealership in United States
Government of the United States reserves the right to make or maintain
limited exceptions to most favored nation treatment, as provided in
Article II, paragraph 1, in the sectors or matters it has indicated
of real property; mining on the public domain; maritime services and
maritime-related services; and primary dealership in United States
Government of Romania reserves the right to make or maintain limited
exceptions to national treatment, as provided in Article II, paragraph
1, in the sectors or matters it has indicated below:
transportation; maritime, coastal, and river shipping; banking;
insurance; government grants and loan programs; customs house services;
legal services; ownership and use of real estate; ownership and
operation of broadcast or common carrier radio and television stations;
tobacco, cigarettes, spirits and alcoholic beverages; lotteries and
games of chance; ownership and exploitation of natural resources;
dealership in securities; public utilities; railways;
telecommunications; and energy production and transmission.
Government of Romania reserves the right to make or maintain limited
exceptions to most-favored-nation treatment, as provided in Article II,
paragraph 1, in the sectors or matters it has indicated below:
the public domain; maritime services and maritime-related services; and
river and road transport.
application of the above-mentioned Romanian exceptions to national or
most-favored-nation treatment, if and when invoked, shall be limited to
the extent provided in Romanian legislation in force.
Parties agree that for the purposes of this Treaty 'national' with
respect to Romania means a natural person who is a citizen of Romania
under its applicable law.
Parties acknowledge that the terms of Article II, paragraph 9(a) are
satisfied if the economic relationship between a Party and a third
country includes a free trade area or customs union.
Without prejudice to the requirements of Article IV, the Government of
Romania shall endeavor during its transition to full convertibility of
the leu to take appropriate steps to improve the efficiency of the
procedures for the transfer of investment returns.
Parties confirm their mutual understanding that the provisions of this
Treaty do not bind either Party in relation to any act or fact which
took place, or any situation which ceased to exist, before the date of
the entry into force of this Treaty.
DEPUTY SECRETARY OF STATE
the Honor to confirm the following understanding which was reached
between the Government of the United States of America and the
Government of Romania in the course of negotiations of the Treaty
Concerning the Reciprocal Encouragement and Protection of Investment
Government of Romania agrees to designate an office to assist U.S.
nationals pnd companies in deriving the full benefits of the Treaty in
connection with their investment and related activities.
office will serve as the coordinator and problem solver for investors
experiencing difficulties with registration, licensing, access to
utilities, regulatory and other matters.
office will provide the following types of services:
on current national and local business/investment regulations, including
licensing and registration procedures, taxation, labor regulations,
accounting standards and access to credit.
notification procedure on proposed regulatory or legal changes affecting
investors with circulation of notices on regulatory changes put into
with Romanian Government agencies at the national and local level to
facilitate investment and resolve disputes.
and dissemination of information on investment projects and their
sources of finance
of Foreign Affairs
to investors experiencing difficulties with repatriating profits and
obtaining foreign exchange.
understand that the office designated by the Romanian Government to
assist U.S. nationals and companies in accordance with this letter is
the Romanian Development Agency.
the honor to propose that this understanding be treated as an integral
part of the Treaty.
be grateful if you would confirm that this understanding is shared by
DEPARTMENT OF STATE
OF LANGUAGE SERVICES
Minister of Foreign Affairs of Romania
Cabinet of Ministers
of the Romanian note agrees in all substantive respects with the
original English-language note sent by Deputy Secretary of State
the honor to advise that the office designated by the Government of
Romania to assist U.S. nationals and companies in accordance with this
letter is the Romanian Development Agency.
the honor to propose that this understanding be considered an integral
part of the Treaty.
be grateful if you could confirm that this understanding is shared by
(s) Adrian Nastase
Secretary of State of the United States of America
offers these agreements electronically as a public service for general
reference. Every effort has been made to ensure that the text presented
is complete and accurate. However, copies needed for legal purposes
should be obtained from official archives maintained by the appropriate