Treaty between the United States of America and the
Argentine Republic
concerning the Reciprocal Encouragement and Protection of Investment
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 securities"
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.
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