[Senate Treaty Document 109-9]
[From the U.S. Government Publishing Office]



109th Congress                                              Treaty Doc.
                                 SENATE                     
 2d Session                                                       109-9
_______________________________________________________________________

                                     

 
                     INVESTMENT TREATY WITH URUGUAY

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE ORIENTAL REPUBLIC 
 OF URUGUAY CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF 
                               INVESTMENT




 April 4, 2006.--Treaty was read the first time, and together with the 
accompanying papers, referred to the Committee on Foreign Relations and 
            ordered to be printed for the use of the Senate

                         LETTER OF TRANSMITTAL

                              ----------                              

                                    The White House, April 4, 2006.
To the Senate of the United States:
    With a view to receiving the advice and consent of the 
Senate to ratification, I transmit herewith the Treaty between 
the United States and the Oriental Republic of Uruguay 
Concerning the Encouragement and Reciprocal Protection of 
Investment, with Annexes and Protocol, signed at Mar del Plata, 
Argentina, on November 4, 2005. I transmit also, for the 
information of the Senate, the report prepared by the 
Department of State with respect to the Treaty.
    The Treaty is the first bilateral investment treaty (BIT) 
concluded since 1999 and the first negotiated on the basis of a 
new U.S. model BIT text, which was completed in 2004. The new 
model text draws on long-standing U.S. BIT principles, our 
experience with Chapter 11 of the North American Free Trade 
Agreement (NAFTA), and the executive branch's collaboration 
with the Congress in developing negotiating objectives on 
foreign investment for U.S. free trade agreements. The Treaty 
will establish investment protections that will create more 
favorable conditions for U.S. investment in Uruguay and assist 
Uruguay in its efforts to further develop its economy.
    The Treaty is fully consistent with U.S. policy towards 
international and domestic investment. A specific tenet of U.S. 
investment policy, reflected in this Treaty, is that U.S. 
investment abroad and foreign investment in the United States 
should receive national treatment and most-favored-nation 
treatment. Under this Treaty, the Parties also agree to 
customary international law standards for expropriation and for 
the minimum standard of treatment. The Treaty includes detailed 
provisions regarding the computation and payment of prompt, 
adequate, and effective compensation for expropriation; free 
transfer of funds related to investment; freedom of investment 
from specified performance requirements; and the opportunity of 
investors to chose to resolve disputes with a host government 
through international arbitration. The Treaty also includes 
extensive transparency obligations with respect to national 
laws and regulations, and commitments to transparency and 
public participation in dispute settlement. The Parties also 
recognize that it is inappropriate to encourage investment by 
weakening or reducing the protections afforded in domestic 
environmental and labor laws.
    I recommend that the Senate give early and favorable 
consideration to the Treaty and give its advice and consent to 
ratification.
                                                    George W. Bush.
                          LETTER OF SUBMITTAL

                              ----------                              

                                       Department of State,
                                     Washington, DC, March 9, 2006.
The President,
The White House.
    The President: I have the honor to submit to you the Treaty 
between the United States of America and the Oriental Republic 
of Uruguay Concerning the Encouragement and Reciprocal 
Protection of Investment, with Annexes and Protocol, signed at 
Mar del Plata on November 4, 2005. I recommend that this 
Treaty, with Annexes and Protocol, be transmitted to the Senate 
for its advice and consent to ratification.
    Although there are currently 39 bilateral investment 
treaties (BITs) in force to which the United States is a party, 
this Treaty with Uruguay is the first BIT concluded in almost 
six years and the first negotiated on the basis of expanded 
core investment principles that protect U.S. investments 
abroad. These expanded core principles include additional 
provisions, such as extensive transparency obligations, 
commitments to transparency and public participation in dispute 
settlement, and a recognition by the Parties that it is 
inappropriate to encourage investment by weakening or reducing 
the protections afforded in domestic environmental and labor 
laws. It is the Administration's policy to maintain broad 
consistency between BITs and the investment chapters of FTAs.
    An overview of key provisions of the U.S.-Uruguay BIT is 
enclosed.
    The other U.S. Government agencies that participated in 
negotiating the Treaty (the Office of the United States Trade 
Representative, the Department of Commerce, the Department of 
the Treasury, and others) join me in recommending that it be 
transmitted to the Senate at an early date.
    Repsectfully submitted,
                                                  Condoleezza Rice.
    Enclosure: As stated.

    
    
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