Investment Treaty with UruguaySenate Consideration of Treaty Document 109-9
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[Senate Treaty Document 109-9] [From the U.S. Government Publishing Office] 109th Congress Treaty Doc. SENATE 2d Session 109-9 _______________________________________________________________________ INVESTMENT TREATY WITH URUGUAY __________ MESSAGE from THE PRESIDENT OF THE UNITED STATES transmitting TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE ORIENTAL REPUBLIC OF URUGUAY CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT April 4, 2006.--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 LETTER OF TRANSMITTAL ---------- The White House, April 4, 2006. To the Senate of the United States: With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith the Treaty between the United States and the Oriental Republic of Uruguay Concerning the Encouragement and Reciprocal Protection of Investment, with Annexes and Protocol, signed at Mar del Plata, Argentina, on November 4, 2005. I transmit also, for the information of the Senate, the report prepared by the Department of State with respect to the Treaty. The Treaty is the first bilateral investment treaty (BIT) concluded since 1999 and the first negotiated on the basis of a new U.S. model BIT text, which was completed in 2004. The new model text draws on long-standing U.S. BIT principles, our experience with Chapter 11 of the North American Free Trade Agreement (NAFTA), and the executive branch's collaboration with the Congress in developing negotiating objectives on foreign investment for U.S. free trade agreements. The Treaty will establish investment protections that will create more favorable conditions for U.S. investment in Uruguay and assist Uruguay in its efforts to further develop its economy. The Treaty is fully consistent with U.S. policy towards international and domestic investment. A specific tenet of U.S. investment policy, reflected in this Treaty, is that U.S. investment abroad and foreign investment in the United States should receive national treatment and most-favored-nation treatment. Under this Treaty, the Parties also agree to customary international law standards for expropriation and for the minimum standard of treatment. The Treaty includes detailed provisions regarding the computation and payment of prompt, adequate, and effective compensation for expropriation; free transfer of funds related to investment; freedom of investment from specified performance requirements; and the opportunity of investors to chose to resolve disputes with a host government through international arbitration. The Treaty also includes extensive transparency obligations with respect to national laws and regulations, and commitments to transparency and public participation in dispute settlement. The Parties also recognize that it is inappropriate to encourage investment by weakening or reducing the protections afforded in domestic environmental and labor laws. I recommend that the Senate give early and favorable consideration to the Treaty and give its advice and consent to ratification. George W. Bush. LETTER OF SUBMITTAL ---------- Department of State, Washington, DC, March 9, 2006. The President, The White House. The President: I have the honor to submit to you the Treaty between the United States of America and the Oriental Republic of Uruguay Concerning the Encouragement and Reciprocal Protection of Investment, with Annexes and Protocol, signed at Mar del Plata on November 4, 2005. I recommend that this Treaty, with Annexes and Protocol, be transmitted to the Senate for its advice and consent to ratification. Although there are currently 39 bilateral investment treaties (BITs) in force to which the United States is a party, this Treaty with Uruguay is the first BIT concluded in almost six years and the first negotiated on the basis of expanded core investment principles that protect U.S. investments abroad. These expanded core principles include additional provisions, such as extensive transparency obligations, commitments to transparency and public participation in dispute settlement, and a recognition by the Parties that it is inappropriate to encourage investment by weakening or reducing the protections afforded in domestic environmental and labor laws. It is the Administration's policy to maintain broad consistency between BITs and the investment chapters of FTAs. An overview of key provisions of the U.S.-Uruguay BIT is enclosed. The other U.S. Government agencies that participated in negotiating the Treaty (the Office of the United States Trade Representative, the Department of Commerce, the Department of the Treasury, and others) join me in recommending that it be transmitted to the Senate at an early date. Repsectfully submitted, Condoleezza Rice. Enclosure: As stated.