Free Trade Area of the Americas - FTAA

 
Ministerial
Declarations
Trade Negotiations
Committee
Negotiating
Groups
Special
Committees
Business
Facilitation
Civil
Society
Trade&Tariff
Database
Hemispheric
Cooperation
Program

Home Countries Sitemap A-Z list Governmental Contact Points

 
 

ARGENTINA - PANAMA
Bilateral Investment Treaty


Scope of Application [Return to the top of the page]

DEFINITION OF INVESTMENT

The term “investment” comprises every kind of asset, invested by an investor of one Contracting Party in the territory of the other Contracting Party, according to the latter’s laws and regulations. This general definition is illustrated by a non exhaustive list of six groups of specific rights, including:

  • traditional property rights;
  • rights in companies;
  • money, monetary claims and titles to performance directly related to a specific investment;
  • intellectual property rights;
  • concessions and reinvested returns. (Article 1(2)).

DEFINITION OF INVESTOR

Nationals

The term “investor” includes any natural person who is a national of one of the Contracting Parties under its law. (Article 1 (1)).

Companies

The term “investor” means any legal person constituted in accordance with the laws and regulations of a Contracting Party, including corporations, associations and other organizations, having its seat in the territory of that Contracting Party. (Article 1 (1)).

Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)

Date of signature: May 10, 1996
Entry into force: June 22, 1998
Duration: 10 years
Thereafter it shall remain in force until the expiration of 12 months from the date that either Party in writing notifies the other Party of its decision to terminate the Agreement.

Admission [Return to the top of the page]

Each Contracting Party shall promote in its territory investments of the other Contracting Party, and shall admit such investments in accordance with its laws and regulations. (Article 2(1)).

Treatment [Return to the top of the page]

STANDARDS

Fair and Equitable Treatment

Yes. Each Contracting Party shall ensure fair, equitable, and non-discriminatory treatment, in its territory, to investments of investors of the other Contracting Party, once admitted in its territory in accordance with its laws and regulations. (Article 2 (2)).

Full Protection and Security

Yes. Each Contracting Party, once it has admitted investments in its territory by investors of the other Contracting Party, shall accord such investments full protection and security. (Article 2 (3)).

Non-Discrimination

Yes. Each Contracting Party shall not impair the management, maintenance, use, enjoyment or disposal of investments of investors of the other Contracting Party through unjustified or discriminatory measures. (Article 2 (2)).

National Treatment

Yes. Each Contracting Party, once it has admitted investments in its territory by investors of the other Party, shall accord them treatment which is no less favorable than that accorded to investments by its own investors or by investors of third States. (Article 2 (3)).

Most-Favored Nation Treatment

Yes. Each Contracting Party, once it has admitted investments in its territory by investors of the other Party, shall accord them treatment which is no less favorable than that accorded to investments by its own investors or by investors of third States. (Article 2 (3)).

Exceptions

Notwithstanding the provisions of Article 2 (3), MFN treatment shall not apply to privileges accorded by each Party to investors of any third State by virtue of its participation or association in a free trade agreement, customs union, common market, or regional agreement. (Article 2 (4)).

The treatment referred to in Article 2 (3) does not extend to benefits which either Party accords to investors of any third State under a taxation agreement. (Art. 2 (5)).

The provisions of Article 2 (3) shall neither be construed so as to extend to investors of the other Party the benefit of any treatment, preference or privilege resulting from the bilateral agreements providing for concessional treatment concluded by the Argentine Republic and Italy on December 10, 1987 and with Spain on June 3, 1988. (Protocol).

OTHER ASPECTS

Performance Requirements

---

Others

If the provisions in the legislation of a Contracting Party, or if the existing or future obligations under international law between the Contracting Parties, or if an agreement between an investor of a Contracting Party and the other Contracting Party include provisions granting investments of investors of the first Contracting Party a more favorable treatment, these provisions shall prevail if they are more favorable. (Article 7).

Investors of either Party who suffer losses of their investments in the territory of the other Party due to war or other armed conflict, a state of national emergency, insurrection, civil disturbances or other events shall be accorded in respect of restitution, indemnification, compensation or other settlement, a treatment which is no less favorable than that accorded to its own investors or to investors of any third state. (Article 4).

Transfers [Return to the top of the page]

TYPES OF PAYMENT

Returns

Yes. Each Contracting Party shall guarantee to investors of the other Contracting Party the unrestricted transfers of investments and returns and, in particular, but not exclusively:

  1. capital and additional amounts necessary for the maintenance and the development of investments;
  2. benefits, profits, interests, dividends, and other current incomes;
  3. funds in repayment of loans, as defined in Article 1 (2);
  4. bonuses and honoraria;
  5. proceeds of the total or partial liquidation or sale of any investment;
  6. any compensation as indicated in Articles 3 and 4;
  7. incomes of nationals of a Contracting Party, nationals that have obtained authorization to work in the territory of the other Contracting Party with respect to an investment. (Article 5 (1)).

Repayment of Loans

Yes. (Article 5 (1) (c)).

Proceeds of the Total or Partial Liquidation of an Investment

Yes. (Article 5 (1) (e)).

Licenses and Other Fees

---

Other Categories of Payment

Yes. (Article 5 (1) (a), (f), (g)).

CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER

Currency

Transfers shall be effected without delay in a freely convertible currency at the exchange rate applicable on the date of transfer, in accordance with the procedures established by the Contracting Party in which territory the investment was made, procedures which cannot affect the substance of the rights set forth in this Article. (Article 5 (2)).

Exchange Rates

Transfers shall be effected at the exchange rate applicable on the date of transfer. (Article 5 (2)).

Time of Transfer

Transfers shall be effected without delay. (Article 5 (2)).

Expropriation [Return to the top of the page]

DEFINITION

Covered Expropriatory Measures

Direct or indirect expropriation or nationalization, or any similar measure. (Article 3(1)).

CONDITIONS

Public Purpose and Non-Discrimination

Yes. “Public use or social interest.” (Article 3(1)).

Due Process of Law and Judicial Review

Yes. (Article 3(1)).
The BIT does not include an independent requirement that expropriations be subject to judicial review. However, it has been argued that the international standard of due process includes such a requirement.

Other

---

Compensation Standard; Form and Time of Payment

“Prompt, adequate and effective compensation”

Compensation shall:

  • amount to the market value of the investment immediately before the date of expropriation or before the impending expropriation became publicly known;
  • include interests at a normal commercial rate from the date of expropriation;
  • be made without delay;
  • be effectively realizable and freely transferable. (Article 3 (1)).

Settlement of Disputes between Contracting Parties
[
Return to the top of the page]

PRE-ARBITRATION NEGOTIATIONS

Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, to the extent possible, be settled through diplomatic channels. (Article 8 (1)).

If it cannot be settled within six months from the start of negotiations, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal. (Article 8 (2).

ARBITRATION

Constitution of the Tribunal

An arbitral tribunal shall be constituted for each dispute as follows:

  • Within two months of the request of arbitration, each Contracting Party shall appoint a member of the tribunal.
  • These two members are required to select, within the next two months, a national of a third State to serve as Chairman of the tribunal, with the approval of both Contracting Parties. When agreement cannot be reached, the President of the International Court of Justice might be entrusted by either Contracting Party with the responsibility of making the appointment. There are also additional provisions to cover cases when the President is a national of either Contracting Party or is otherwise prevented from fulfilling this function.
  • Regarding costs, each Contracting Party is required to bear the expenses of its own member of the tribunal and of its representation in the proceedings, while the costs related to the Chairman are to be paid for equally by the Contracting Parties. (Article 8 (3) (4) (5)).

Procedural Rules of the Tribunal

The tribunal shall determine its own procedure.
Decisions of the tribunal shall be taken by a majority of votes and shall be binding on both Contracting Parties. (Article 8 (5)).

Applicable Law

No reference.

Settlement of Disputes between a Contracting Party and an Investor [Return to the top of the page]

DEFINITION

---

PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS

Any dispute relating to investments between an investor of one Contracting Party and the other Contracting Party will, to the extent possible, be settled through amicable consultations. (Art. 9 (1)).

If it was not possible to settle the dispute within a period of six months, it may be submitted at the request of the investor:

  1. to the competent tribunals of the host party; or
  2. to international arbitration.

Election by the investor of either one of these procedures shall be definitive. (Article 9 (2)).

ARBITRAL SETTLEMENT OF DISPUTES

Conditions

---

Consent

---

Forms of Arbitration

When the dispute is referred to international arbitration, it may be submitted, at the choice of the investor, to:

  1. ICSID, provided each Contracting Party is a party to the ICSID Convention. (For the interim period, both parties give their consent to the submission of the dispute to the ICSID Additional Facility Rules); or
  2. an ad hoc arbitration tribunal established under the UNCITRAL Arbitration Rules. (Article 9 (3)).

Applicable Law

The arbitral tribunal shall decide the dispute in accordance with the provisions of the Agreement; with reference to the laws of the Contracting Party involved in the dispute; terms of any specific agreement concluded in relation to such an investment; and, principles of international law. (Article 9 (4)).


 
countries sitemap a-z list governmental contact points