The Jordan Times 24/2/2008:
A bilateral investment treaty signed by Jordan and Slovakia on Thursday aims at upgrading economic relations between both countries to the level of political relations.
Industry and Trade Minister Amer Hadidi and Slovakia ambassador to Jordan, Oldrick Hlavacek, signed the agreement which grants investments made by an investor of one country in the territory of the other, a number of guarantees, including the protection of foreign investor rights, fair and equitable national treatment to foreign investors as well as protection from expropriation.
Under the agreement, investments of investors of one party made in the territory of the other party shall not be expropriated, nationalised or subjected to any measures having effect equivalent to expropriation or nationalisation.
A press release detailing the bilateral investment treaty said Jordan and the Slovak Republic intended to create favourable conditions for making investments by investors of one party in the territory of the other party and recognised that the promotion and reciprocal protection of investments on the basis of this agreement shall stimulate inflow of capital and development of mutually beneficial trade, economic, scientific and technical cooperation.
Bilateral investment treaties have grown in the last two decades, and play an increasingly significant role in global trade and investment protection. It serves to broaden global economic security and development.
The presence or absence of a bilateral investment treaty on foreign investments is a very significant factor determining investment decisions of foreign investors. It is widely believed that, when countries conclude bilateral investment treaties, the flow of foreign investments increase.
“This agreement represents the capstone of growing Slovak-Jordanian collaboration in economic relations,” the press release said. “It aims at strengthening the bonds of friendship and economic relations and cooperation between the two countries, with a view to raising living standards and promoting economic growth, investment opportunities and employment, and eventually raising the capacity and international competitiveness of goods and services of both countries.”
Designed to encourage and protect Jordanian and Slovak investments in both countries, the bilateral Jordan-Slovak investment treaty compensates investors for losses, investors of one party whose investments suffer losses in the territory of the other party as a result of war, civil disturbance or other similar events. The agreement also gives a free transfer of payments related to the investments and full protection and security.
“Jordan is confident that signing this agreement will help continue and speed up the implementation of Jordan’s strategy to enhance economic relations with Slovakia and attract investments to both countries,” the press statement concluded.