THE
UNITED STATES-ARGENTINA TREATY
The
Argentina treaty satisfies the main BIT objectives, which are:
Investment or nationals and companies of one
Party is the territory of the other Party (investments) receive the
better of the treatment accorded to domestic investments in like
circumstances (national treatment), or the treatment accorded to third
country investments in like circumstances (most-favored nation (MFN)
treatment), both on establishment and thereafter, subject to certain
specified exceptions; Investments are guaranteed freedom from
performance requirements, such as obligations to use local products or
to export goods; Companies which are investments may hire top managers
of their choice, regardless of nationality; Expropriation can occur
only in accordance with international law standards: in a
non-discriminatory manner, for a public purpose; and upon payment of
prompt, adequate, and effective compensation; Investment-related funds
are guaranteed unrestricted transfer in a freely usable currency; and;
Nationals and companies of either Party, and their investments have
access to binding international arbitration in investment disputes
with the host government, without first resorting to domestic courts.
As does the model BIT, the Argentina treaty
allows sectoral exceptions to national and MFN treatment, as set forth
in protocol to the treaty. 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
state or federal law.
Sectors and matters which the U.S. excepts from
national treatment are air transportation; ocean and coastal shipping;
banking; insurance; energy and power production; custom house brokers;
ownership and operation of broadcast or common carrier radio and
television stations; ownership of real property; ownership of shares
in the Communications Satellite Corporation; the provision of common
carrier telephone and telegraph services; the provision of submarine
cable services; and use of land and natural resources. The United
States also reserves the right to make or maintain limited exceptions
to national treatment with respect to certain programs involving
government grants, loans and insurance.
U.S. exceptions from both national and MFN
treatment which are based on reciprocity and mining on the public
domain; maritime services and maritime-related services; and primary
dealership in United States government securities.
The Argentine exceptions to national treatment
are real estate in the Border Areas; air transportation; shipbuilding;
nuclear energy centers; uranium mining; insurance; and fishing. "Mining"
was included in Argentina's list of national treatment exceptions at
the time the treaty was signed but was deleted by an amendment
effected by exchange of notes August 24 and November 6, 1992. This
will ensure that treaty protections will be extended to an additional
sector of significant commercial interest of U.S. investors. In no
sectors of the Argentine economy are these restrictions on MFN
treatment to be accorded to U.S. investments.
Regarding the obligation not to impose
performance requirements, the Argentine treaty contains a protocol
provision which recognizes that Argentina currently maintains
performance requirements in the automotive industry. These performance
requirements may not be intensified, and Argentina undertakes to exert
its best efforts to eliminate them within the shortest possible
period, and will ensure their elimination no later than eight years
from the entry into force of the treaty. Pending such elimination,
Argentina undertakes that these performance requirements shall not be
applied in a manner that places existing investments at a competitive
disadvantage to any new entrants in this industry.
Achieving such a roll-back of existing
performance requirements is a landmark accomplishment and should serve
as a model for agreements with other countries which maintain
analogous requirements.
The treaty with Argentina addresses, for the
first time in the U.S. BIT program, debt-equity conversion programs,
under which an investor purchases debt of a country at a discount and
receives local currency in an amount equivalent to the debt's face
value. These programs normally require that the investor postpone
repatriating the local currency obtained in the conversion. Investors
may choose to enter into such programs because they obtain more local
currency than they than they otherwise would receive for a given
amount of foreign exchange. The treaty's protocol provides that any
deferral of transfers agreed to under debt-equity conversion programs
would not be superseded by the treaty's guarantee of transfers without
delay. This provision in the protocol was added at the suggestion of
the United States. The United States ha been generally supportive of
debt-equity conversion programs as part of the overall solution to the
debt problem and has considered them to be an important element in
commercial bank financing programs which reduce debt and debt service.
The treaty's protocol also provides that, to the
extent of any inconsistency between this treaty and the 1854
friendship, commerce, and navigation treaty between the Parties, which
is still in force, the BIT shall prevail. This provision was added at
the behest of the United States in order to override Article IX of the
1854 treaty, which gives Argentine citizens national treatment with
respect to real estate ownership in the United States. The BIT will
place Argentine citizens on the same plane as other foreign nationals
in this regard.
The BIT with Argentina provides that an
investment dispute between a Party and a national or company of the
other Party, including a dispute involving an investment authorization
or the interpretation of an investment agreement, may be submitted to
international arbitration six months after the dispute arose.
Exhaustion of local remedies is not required. The treaty identifies
several different procedures for arbitration, at the investor's
option: the International Centre for the Settlement of Investment
Disputes ("ICSID:), upon Argentina's adherence to the ICSID
Convention; the ICSID Additional Facility, if ICSID is not available,
or ad hoc arbitration under the Arbitration Rules of the United
Nations Commission on International Trade Law (UNCITRAL).
The other U.S. Government agencies which
negotiated the treaty concur in my recommendations that it be
transmitted to the Senate at an early date.
Respectfully submitted,
Arnold Kantor
Acting Secretary
TREATY BETWEEN
UNITED STATES OF AMERICA AND
THE ARGENTINE REPUBLIC
CONCERNING THE RECIPROCAL
ENCOURAGEMENT
AND PROTECTION OF INVESTMENT
The United States of America and the Argentine
Republic, hereinafter referred to as the Parties;
Desiring 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;
Agreeing that fair and equitable treatment of
investment is desirable in order to maintain a stable framework for
investment and maximum effective use 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
having resolved to conclude a Treaty concerning
the encouragement and reciprocal protection of investment;
Have agreed as follows:
ARTICLE I
1. For the purposes of this Treaty,
a) "investment" 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 includes
without limitation:
(i) tangible and intangible property, including
rights, such as mortgages, liens and pledges;
(ii) a company or shares of stock or other
interests in a company or interests in the assets thereof;
(iii) a claim to money or a claim to performance
having economic value and directly related to an investment;
(iv) intellectual property which includes, inter
alia, rights relating to: literary and artistic works, including sound
recordings, inventions in all fields of human endeavor, industrial
designs, semiconductor mask works, trade secrets, know-how, and
confidential business information, and trademarks, service marks, and
trade names; and
(v) any right conferred by law or contract, and
any licenses and permits pursuant to law;
b) "company" of a Party means any
kind of corporation, company, association, state enterprise, 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, and whether privately or governmentally owned;
c) "national" of a Party means a
natural person who is a national of a Party under its applicable law;
d) "return" means an amount derived
from or associated with an investment, including profit; dividend;
interest; capita gain; royalty payment; management, technical
assistance or other fee; or returns in kind;
e) "associated activities" include
the organization, control, operation, maintenance and disposition of
companies, branches, agencies, offices, factories or other facilities
for the conduct of business; the making, performance and enforcement
of contracts; the acquisition, use, protection and disposition of
property of all kinds including intellectual and industrial property
rights; and the borrowing of funds, the purchase, issuance, and sale
of equity shares and other securities, and the purchase of foreign
exchange for imports.
f) "territory" means the territory of
the United States or the Argentine Republic, 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 the Argentine Republic has sovereign rights
or jurisdiction in accordance with international law as reflected in
the 1982 United Nations Convention on the Law of the Sea.
2. Each Party reserves the right to deny to any
company of the other Party the advantages of this Treaty if (a)
nationals of any third country, or nationals of such Party, control
such company and the company has no substantial business activities in
the territory of the other Party, or (b) the company is controlled by
nationals of a third country with which the denying Party does not
maintain normal economic relations.
3. Any alteration of the form in which assets
are invested or reinvested shall not affect their character as
investment.
ARTICLE II
1. Each
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 more favorable, subject to the right of each Party to
make or maintain exceptions falling within one of the sectors or matters
listed in the Protocol 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 Protocol. Moreover, each Party agrees
to notify the other of any future exception with respect to the sectors
or matters listed in the Protocol, 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 Protocol, be not less favorable
than that accorded in like situations to investments and associated
activities of nationals or companies of any third country.
2. a)
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.
b)
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 the purposes of
dispute resolution under Articles VII and VIII, a measure may be
arbitrary or discriminatory notwithstanding the opportunity to review
such measure in the courts or administrative tribunals of a Party.
c) Each
Party shall observe any obligation it may have entered into with regard
to investments.
3.
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.
4.
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
nationality.
5.
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
similar requirements.
6. Each
Party shall provide effective means of asserting claims and enforcing
rights with respect to investments, investment agreements, and
investment authorizations.
7. Each
Party shall make public all laws, regulations, administrative practices
and procedures, and adjudicatory decisions that pertain to or affect
investments.
8. The
treatment accorded by the United States of America to investments and
associated activities of nationals and companies of the Argentine
Republic under the provisions of this Article shall in any State,
Territory or possession of the United States of 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.
9. The
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 that Party's binding obligations that derive
from full membership in a regional customs union or free trade area,
whether such an arrangement is designated as a customs union, free trade
area, common market or otherwise.
ARTICLE
III
This
Treaty shall not preclude either Party from prescribing laws and
regulations in connection with the admission of investments made in its
territory by nationals or companies of the other Party or with the
conduct of associated activities, provided, however, that such laws and
regulations shall not impair the substance of any of the rights set
forth in this Treaty.
ARTICLE
IV
1.
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
non-discriminatory 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 paid without delay;
include interest at a commercially reasonable rate from the date of
expropriation; be fully realizable; and be freely transferable at the
prevailing market rate of exchange on the date of expropriation.
2. A
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 compensation therefore, conforms
to the provisions of this Treaty and the principles of international
law.
3.
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 more favorable treatment, as regards any measures it adopts in
relation to such losses.
ARTICLE
V
1. Each
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 IV; (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 directly related to an
investment; (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 investment.
2. Except
as provided in Article IV paragraph 1, transfers shall be made in a
freely usable currency at the prevailing market rate of exchange on the
date of transfer with respect to spot transactions in the currency to be
transferred. The free transfer shall take place in accordance with the
procedures established by each Party; such procedures shall not impair
the rights set forth in this Treaty.
3.
Notwithstanding the provisions of paragraphs 1 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.
ARTICLE
VI
The
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.
ARTICLE VII
1. For purposes of this Article, an investment
dispute is 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 (if
any such authorization exists) 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. If the dispute cannot be settled
amicably, the national or company concerned may choose to submit the
dispute for resolution:
(a) to the courts or administrative tribunals of
the Party that is a party to the dispute; or
(b) in accordance with any applicable,
previously agreed dispute-settlement procedures; or
(c) in accordance with the terms of paragraph 3.
3. (a) Provided that the national or company
concerned 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
(ii) to the Additional Facility of the Centre,
if the Centre is not available; or
(iii) in accordance with the Arbitration Rules
of the United Nations Commission on International Trade Law
(UNICTRAL): or
(iv) to any other arbitration institution, or in
accordance with any other arbitration rules, as may be mutually agreed
between the parties to the dispute.
(b) Once 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.
4. Each 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 requirement for:
(a) 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 United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, done at New
York, June 10, 1958 ("New York Convention").
5. Any 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.
6. Any 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.
8. For 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.
ARTICLE VIII
1. Any 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 govern.
2. Within 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.
3. Unless 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.
4. Expenses incurred by the Chairman, the other
arbitrators, and other costs of the proceedings shall be paid for
equally by the Parties.
ARTICLE IX
The provisions of Article VII and VIII 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.
ARTICLE X
This Treaty shall not derogate from:
(a) laws and regulations, administrative
practices or procedures, or administrative or adjudicatory decisions
of either Party;
(b) international legal obligations; or
(c) obligations assumed by either Party,
including those contained in an investment agreement or an investment
authorization,
that entitle investments or associated
activities to treatment more favorable than that accorded by this
Treaty in like situations.
ARTICLE XI
This 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 security interests.
ARTICLE XII
1. With 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.
2. Nevertheless, the provisions of this Treaty,
and in particular Article VII and VIII, shall apply to matters of
taxation only with respect to the following:
(a) expropriation, pursuant to Article IV;
(b) transfers, pursuant to Article V; or
(c) the observance and enforcement of terms of
an investment agreement or authorization as referred to in Article
VII(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.
ARTICLE XIII
This Treaty shall apply to the political
subdivisions of the Parties.
ARTICLE XIV
1. This 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 acquired thereafter.
2. Either 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.
3. With 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.
4. The Protocol shall form an integral part of
the Treaty.
IN WITNESS WHEREOF, the respective
plenipotentiaries have signed this Treaty.
DONE in duplicate at Washington on the
fourteenth day of November, 1991, in the English and Spanish
languages, both texts being equally authentic.
FOR THE UNITED STATES OF AMERICA:
FOR THE ARGENTINE REPUBLIC:
PROTOCOL
1. During dispute settlement proceedings
pursuant to Article VII, a party may be required to produce evidence
of ownership or control consistent with Article I(l)(a).
2. With reference to Article II, paragraph 1,
the United States reserves the right to make or maintain limited
exceptions to national treatment in the following sectors:
air transportation; ocean and coastal shipping;
banking; insurance; energy and power production; custom house brokers;
ownership and operation of broadcast or common carrier radio and
television stations; ownership of real property; 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
3. With reference to Article II, paragraph 1,
the United States reserves the right to make or maintain limited
exceptions to national treatment with respect to certain programs
involving government grants, loans, and insurance.
4. With reference to Article II, paragraph 1,
the United States reserves the right to make or maintain limited
exceptions to national and most favored nation treatment in the
following sectors, with respect to which treatment will be based on
reciprocity:
mining on the public domain; maritime services
and maritime-related services; primary dealership in United States
government securities.
5. With reference to Article II, paragraph 1,
the Argentine Republic reserves the right to make or maintain limited
exceptions to national treatment in the following sectors:
real estate in the Border Areas; air
transportation; shipbuilding; nuclear energy centers; uranium mining;
insurance; mining; fishing.
6. The Parties understand that, with respect to
rights reserved in Article XI of the Treaty, "obligations with
respect to the maintenance or restoration of international peace or
security" means obligations under the Charter of the United
Nations.
7. The Parties acknowledge and agree that, to
the extent of any conflict or inconsistency between the terms of this
Treaty, and the terms of the Treaty of Friendship, Commerce, and
Navigation between the Parties, entered into force December 20, 1854
(the "FCN Treaty-), the terms of this Treaty shall supersede the
terms of the FCN Treaty, and shall control the resolution of such
conflict.
8. The 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.
9. Notwithstanding Article II(5) and in
accordance with the terms of this paragraph, the Government of the
Argentine Republic may maintain, but not intensify, existing
performance requirements in the automotive industry. The Government of
the Argentine Republic shall exert best efforts to eliminate all such
requirements within the shortest possible period, and shall ensure
their elimination within eight years of the date of the entry into
force of this Treaty. The Government of the Argentine Republic shall
further ensure that such performance requirements are applied in a
manner which does not place existing investments at a competitive
disadvantage against new entrants in this industry. The Parties shall
consult at the request of either on any matter concerning the
implementation of these undertakings. For the purposes of this
paragraph, "existing" means extant at the time of signature
of this Treaty.
10. The Parties note that the Argentine Republic
has had and may have in the future a debt-equity conversion program
under which nationals or companies of the United States may choose to
invest in the Argentine Republic through the purchase of debt at a
discount.
The Parties agree that the rights provided in
Article V, paragraph 1, with respect to the transfer of returns and of
proceeds from the sale or liquidation of all or any part of an
investment, remain or may be, as such rights would apply to that part
of an investment financed through a debt-equity conversion, modified
by the terms of any debt-equity conversion agreement between a
national or company of the United States and the Government of the
Argentine Republic, or any agency or instrumentality thereof.
The transfer of returns and of proceeds from the
sale or liquidation of all or any part of an investment shall in no
case be on terms less favorable than those accorded, in like
circumstances, to nationals or companies of the Argentine Republic or
any third country, whichever is more favorable.
11. The Parties note with satisfaction that the
Argentine Republic is engaged in a process of privatization of various
industries, including public utilities. They agree that they will
undertake their best efforts, including through consultations, to
avoid any misinterpretation regarding the scope of Article II(5) that
would adversely affect this privatization process.
Embassy of the United States of America
Buenos Aires, August 24, 1992
No. 453
Mr. Minister:
I have the honor to refer to the Treaty between
the United States of America and the Argentine Republic concerning the
reciprocal encouragement and protection of investment, with Protocol
signed at Washington, November 14, 1991 ("The Treaty").
During the negotiation of the Treaty, the
Government of the United States of America and the Government of the
Argentine Republic discussed the inclusion in Section 5 of the
Protocol to the Treaty of the Argentine Mining Sector. Based on those
discussions and subsequent discussions regarding this matter, I wish
to propose the deletion of the term "Mining" from the list
of sectors in Section 5 of the Protocol.
If the foregoing is acceptable to your
Government, I have the honor to propose that this note, together with
your reply to that effect shall constitute an agreement between the
two Governments amending the Treaty, which shall be subject to
ratification.
Accept, Mr. Minister, the renewed assurances of
my highest consideration.
Dr. Guido Di Tella,
Minister of Foreign Affairs and Worship,
Buenos Aires.
DEPARTMENT OF STATE
OFFICE OF LANGUAGE SERVICES
Translating Division
LS No. 140114
LM
SPA/ENG
Minister of Foreign Relations and Worship
Buenos Aires, November 6, 1992
Mr. Ambassador:
I have the honor to address you with regard to
your note dated August 24, 1992, which reads as follows:
[The Spanish translation of Ambassador Todman's
note of August 24, 1992, agrees in all substantive respects with the
original English text.]
In that regard I wish to state that my
Government agrees with the terms of the transcribed note and,
therefore, I have the honor to inform you that the aforesaid note and
this reply constitute an agreement between out two Governments that
will enter into force open the exchange of instruments of
ratification.
Accept, Sir, the assurances of my highest
consideration.
[Signature]
His Excellency
Terence Todman,
Ambassador of the United States of America,
Buenos Aires, Argentina
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