[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 686 Introduced in House (IH)]

112th CONGRESS
  2d Session
H. RES. 686

Expressing the sense of the House of Representatives that the Republic 
   of Argentina's membership in the G20 should be conditioned on its 
 adherence to international norms of economic relations and commitment 
                          to the rule of law.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2012

 Mr. Smith of New Jersey submitted the following resolution; which was 
              referred to the Committee on Foreign Affairs

_______________________________________________________________________

                               RESOLUTION


 
Expressing the sense of the House of Representatives that the Republic 
   of Argentina's membership in the G20 should be conditioned on its 
 adherence to international norms of economic relations and commitment 
                          to the rule of law.

Whereas the Republic of Argentina enjoys the privilege of membership in the 
        Group of Twenty Finance Ministers and Central Bank Governors (G20);
Whereas the G20 aims to bring together the world's major advanced and emerging 
        economies to achieve global economic stability and sustainable growth;
Whereas at the Summit of the Group of Twenty in 2008, G20 leaders declared that 
        ``our work will be guided by a shared belief that market principles, 
        open trade and investment regimes, and effectively regulated financial 
        markets foster the dynamism, innovation, and entrepreneurship that are 
        essential for economic growth, employment and poverty reduction'';
Whereas at the Pittsburgh Summit of 2009, G20 leaders including President Barack 
        Obama ``designated the G20 to be the premier forum for our international 
        economic cooperation'';
Whereas at the Cannes Summit of 2011, G20 leaders reaffirmed their ``commitment 
        to work together'' and stressed, among other principles, the need to 
        conduct International Monetary Fund (IMF) surveillance of national 
        economies, avoid protectionism, reinforce the multilateral trading 
        system, strengthen anti-money laundering measures, and combat financing 
        of terrorism;
Whereas Argentina has repeatedly and willfully refused to honor its debts 
        despite currently holding at least $45,000,000,000 in foreign currency 
        reserves;
Whereas Argentina has consistently violated the spirit and letter of these and 
        other G20 declarations through its policy of expropriating the property 
        of foreign investors, evading the judgments of United States courts, 
        ignoring decisions of international arbitral forums, refusing to comply 
        with IMF membership requirements, and failing to implement anti-money 
        laundering and terrorist financing measures;
Whereas the Argentina government has a longstanding policy of repudiating debts 
        to bondholders stemming from its 2001 default, evading over 100 
        judgments against it in United States courts, and enacting the so-called 
        Lock Law by which it prohibits itself from satisfying its obligations to 
        bondholders that refused derisory exchange offers;
Whereas Argentina has persistently ignored claims brought by United States and 
        other companies before the International Center for Settlement of 
        Investment Disputes (ICSID), administered by the World Bank, despite 
        receiving billions of dollars in loans from the World Bank;
Whereas Argentina remains one of only four countries, and the only G20 member, 
        that refuses to submit to an IMF review in violation of Article IV of 
        the IMF Charter;
Whereas Argentina's disreputable conduct threatens to embolden other nations to 
        pursue comparable tactics for flouting their international financial 
        commitments, as exemplified by Ecuador, which in 2008 selectively 
        defaulted on its sovereign bond obligations, citing Argentina's actions 
        as precedent; and
Whereas the Financial Action Task Force has warned of Argentina's failure to 
        comply with 47 out of 49 recommendations to address the vulnerability of 
        institutions to terrorist financing and money laundering, giving 
        Argentina the worst evaluation of any G20 member nation: Now, therefore, 
        be it
    Resolved, That the House of Representatives calls on--
            (1) the Republic of Argentina to fulfill the 
        responsibilities inherent with membership in the Group of 
        Twenty Finance Ministers and Central Bank Governors (G20), in 
        accordance with the principles articulated by this premier 
        forum for international economic cooperation; and
            (2) the President and the Secretary of the Treasury to work 
        with the governments of the G20 members to--
                    (A) terminate the participation of Argentina in the 
                G20 until the President determines and reports to 
                Congress that Argentina has--
                            (i) reversed efforts to expropriate foreign 
                        investment in Argentina;
                            (ii) fully satisfied all outstanding 
                        judgments of United States courts against it;
                            (iii) fully honored all awards of 
                        international arbitral panels against it; and
                            (iv) complied with the recommendations of 
                        the Financial Action Task Force;
                    (B) condition Argentina's future membership in the 
                G20 on its adherence and commitment to international 
                norms of economic relations and commitment to the rule 
                of law; and
                    (C) identify other countries that could replace 
                Argentina in the G20 by virtue of their adherence to 
                international economic norms and respect for the rule 
                of law.
                                 <all>