ALCA FTAA ZLEA - Investment : Expropriation - Panama/United States

Free Trade Area of the Americas - FTAA

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Investment Agreements in the Western Hemisphere: A Compendium

Agreement Between Panama and the United States
27 October 1982

Subject: V. Expropriation

A. Definition

1. Covered Expropriatory Measures Expropriation or nationalization (directly or indirectly through measures tantamount to expropriation or nationalization). (Article IV (1)).

B. Conditions

1. Public Purpose and Non-Discrimination
Yes. (Article IV (1)).

2. Due Process of Law and Judicial Review
Yes. (Article IV (1)). The BIT does not include an independent requirement that expropriatio ns be subject to judicial review. However, it has been argued that the international standard of due process includes such a requirement.

3. Other
Expropriation has to be made in accordance with the general principles of treatment provided for in Article II (2). (Article III (1)). See supra.

4. Compensation: Standard; Form and Time of Payment
"Prompt, adequate and effective compensation" Compensation shall: . be equivalent to the full value of the expropriated investment immediately before the expropriatory action became known; . include interests at a commercially reasonable rate; . be made without delay; . be fully realizable and freely transferable. (Article IV (1)).


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