[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
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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.