Bilateral Investment Treaties
Jordan–Lebanon Agreement on the Protection and Promotion of Investments
The agreement requires each State to afford fair treatment and full protection to investments by nationals and enterprises of the other State, and sets out compensation standards for expropriation and rules for transfers of investment proceeds. It also provides mechanisms for investor‑State and State‑to‑State dispute resolution with specific procedural timelines and arbitration appointment rules.
Updated: 15 December 2021
Prepared and reviewed by: Ashraf Al-Khawaja
Scope of Application and Key Definitions
The treaty adopts a broad definition of “investments,” covering movable and immovable assets, intellectual property rights, corporate shares, and statutory or contractual concessions. It applies to investments established under the host State’s laws, including pre‑existing investments, while excluding disputes that arose before the treaty’s entry into force; “territory” is defined to include each State’s exclusive economic zone and seabed rights.
Substantive Protections and Treatment
Each State undertakes to afford investments by nationals of the other State fair and non‑discriminatory treatment and full protection and security, not less favourable than national treatment or the most‑favoured‑nation standard, whichever is better. The host State must, under its laws, facilitate necessary permits and authorisations, including for key managerial and technical personnel chosen by the investor.
Expropriation and Compensation
Expropriation or nationalisation is permitted only for a public purpose, carried out non‑discriminatorily and accompanied by prompt, adequate and effective compensation equal to the market value at the time of the expropriation or the most favourable date for the investor. Compensation must be freely transferable in a usable currency; interest is due for payment delays at a commercially reasonable rate or as agreed, and investors retain the right to contest expropriation and to pursue applicable domestic remedies.
Free Transfers and Exchange Conditions
The treaty guarantees prompt transfers connected with investments, including net profits, proceeds from partial or full sales, debt repayments, employee earnings and dispute compensation. Exchange rates applied are those prevailing in the market at the time of transfer, and the host State must accord transfers treatment no less favourable than that given to transfers by its own investors or investors of third States.
Dispute Settlement Mechanisms and Procedural Rules
Investor‑State disputes begin with consultations for up to six months; if unresolved, the investor may elect to submit the dispute to the host State’s competent court or to arbitration under specified fora (the Arab unified investment dispute chapter, ICSID, or arbitration under UNCITRAL rules). The treaty prescribes procedural timelines for appointing arbitrators (three months for individual arbitrators and up to five months for the chair), with the ICJ President empowered to appoint arbitrators if parties fail to do so. Arbitral awards are final and binding and must be executed in accordance with domestic law.
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Disclaimer: The above is for general educational purposes based on the published treaty text and does not substitute for specialised legal advice. The original source is linked on the firm’s page; users should verify the operative text, subsequent laws, amendments and dates with the official authority or consult a licensed attorney.
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