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Investment Agreements in the Western Hemisphere: A Compendium

Bilateral Free Trade Agreements


V. Expropriation | B. Compensation

Free Trade Agreement Between Bolivia and Mexico

Each Party shall permit transfers to be made in a freely convertible currency at the exchange rate prevailing on the market on the date of transfer. (Article 15-08(2)). The compensation shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation measure is put into effect (Adate of expropriation@), and shall not reflect any change in value due to the intention to expropriate having been known prior to the date of expropriation. The valuation criteria shall include the declared taxable value of tangible assets, together with such other criteria as are deemed appropriate for determining the fair market value. (Article 15-09(2)). The payment of the compensation shall be made without delay and shall be fully realizable. (Article 15-09(3)). The sum paid shall not be less than the equivalent amount that would have been paid for compensation in a freely convertible currency in the international financial market on the date of expropriation, said currency being converted at the market rate on the valuation date, plus the interest that would have been generated at a reasonable commercial rate for that currency up to the date of payment. (Article 15-09(4)).

Free Trade Agreement Between Costa Rica and Mexico

The compensation shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation measure is put into effect ("date of expropriation"), and shall not reflect any change in value due to the intention to expropriate having been known prior to the date of expropriation. The valuation criteria shall include the declared taxable value of tangible assets, together with such other criteria as are deemed appropriate for determining the fair market value. (Article 13-10(2)).

The payment of the compensation shall be made without delay and shall be fully realizable. (Article 13-10(3)).

The sum paid shall not be less than the equivalent amount that would have been paid for compensation in a freely convertible currency in the international financial market on the date of expropriation, said currency being converted at the market rate on the valuation date, plus the interest that would have been generated at a reasonable commercial rate for that currency, chosen by the Party in accordance with international parameters, up to the date of payment. (Article 13-10(4)).

Free Trade Agreement Between Canada and Chile

Compensation shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place ("date of expropriation"), and shall not reflect any change in value occurring because the intended expropriation had become known earlier. Valuation criteria shall include going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine fair market value. (Article G-10(2)).

Compensation shall be paid without delay, be fully realizable and freely transferable. If payment is made in a G7 currency, compensation shall include interest at a commercially reasonable rate for that currency from the date of expropriation until the date of actual payment.(Article G-10(3)(4)(5)(6)).

 
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