ALCA FTAA ZLEA - Investment: Standards - Bolivia/Peru

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Investment Agreements in the Western Hemisphere: A Compendium

Agreement Between Bolivia and Peru
30 July 1993

Subject: III. Treatment

A. Standards

1. Fair & Equitable Treatment
Yes. (Article 3 (1)).

2. Full Protection and Security
Yes, full protection. (Article 2 (2)).

3. Non-Discrimination
Yes. Each Contracting Party shall not impair, with arbitrary and discriminatory measures, the management, utilization, use, enjoyment or disposal of investments of investors of the other Contracting Party. (Article 3 (1)).

4. National Treatment
Yes. Each Contracting Party shall accord to investments of investors of the other Contracting Party treatment no less favorable than that it accords to investments of its nationals or those of a third State, i.e. treatment that will be the most favorable to investments of nationals of the other Contracting Party. (Article 3 (2)).

5. Most-Favored-Nation Treatment
Yes. Each Contracting Party shall accord to investments of investors of the other Contracting Party treatment no less favorable than that it accords to investments of its nationals or those of a third State, i.e. treatment that will be the most favorable to investments of nationals of the other Contracting Party. (Article 3 (2)). Nationals of a Contracting Party shall enjoy MFN treatment with respect to Articles 5 [expropriation] and 6 [compensation] in the territory of the other Contracting Party. (Article 7).

B. Exceptions
The treatment accorded in Article 3 (2) shall not be extended to the privileges that a Contracting Party accords to nationals of third States by virtue of a customs or economic union, a common market or free trade area, or other similar international agreements with third States for mutual economic assistance, or other forms of regional cooperation. (Article 3 (3)). National treatment and most-favored-nation treatment do not extend to the benefits or advantages that one of the Contracting Parties accords to nationals of third States as a result of a taxation agreement. (Article 3 (4)). Nothing in this Treaty shall prevent a Contracting Party from reserving some economic activities in accordance with its political Constitution. Moreover, nothing in this Treaty shall prevent a Contracting Party from adopting measures, if not discriminatory, for reasons of internal and external national security, public or moral order. (Article 3 (5)).

C. Other Aspects

1. Performance Requirements

2. Others
If the provisions in the legislation of a Contracting Party,or if the existing or future obligations under international law between the two Contracting Parties, or if an agreement between an investor of a Contracting Party and the other Contracting Party include provisions granting to investments of investors of the first Contracting Party a more favorable treatment, these provisions shall prevail (if they are more favorable). (Article 10 (1)). Nationals of one Contracting Party, suffering losses due to war or armed conflict, revolution, national emergency, state of siege, insurrection or other similar events in the territory of the other Contracting Party, shall not be treated less favorably than investors of this Contracting Party with regard to restitution, compensation, indemnification or other settlement. These payments shall be transferable to the territory of the first Contracting Party or any third State. (Article 6). Each Contracting Party shall comply with the other commitments it has entered into with respect to investments of investors of the other Contracting Party. (Article 10 (2)).


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