[Congressional Record Volume 158, Number 66 (Thursday, May 10, 2012)]
[Senate]
[Page S3091]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   SENATE RESOLUTION 457--EXPRESSING THE SENSE OF CONGRESS 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

  Mr. LUGAR submitted the following resolution; which was referred to 
the Committee on Foreign Relations:

                              S. Res. 457

       Whereas Argentina has enjoyed the privilege of membership 
     in the Group of Twenty Finance Ministers and Central Bank 
     Governors (G20);
       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, entrepreneurship that are essential 
     for economic growth, employment and poverty reduction'';
       Whereas, at the Pittsburgh Summit of 2009, G20 nations 
     ``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 surveillance of national economies, avoid 
     protectionism and the need to reinforce the multilateral 
     trading system, strengthen anti-money laundering measures, 
     and combat financing of terrorism;
       Whereas the Republic of 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 International Monetary Fund membership 
     requirements, and failing to implement anti-money laundering 
     and terrorist financing measures;
       Whereas the President Cristina Fernandez de Kirchner has 
     flouted international norms and agreements by proposing 
     legislation to nationalize Argentina's largest oil and gas 
     producer, YPF SA, effectively expropriating the assets of 
     foreign investors;
       Whereas President Fernandez won congressional backing to 
     seize YPF SA (YPFD) from Spain's Repsol YPF SA (YPF), with 
     the Argentina Senate approving the legislation on April 26, 
     2012, and the lower house of the Argentina Congress voting 
     207 to 32 on May 3, 2012, to back her bill empowering the 
     Government of Argentina to take 51 percent of YPF;
       Whereas Argentina has persistently ignored claims brought 
     by United States and other countries 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 refuse to submit to an 
     International Monetary Fund review in violation of Article IV 
     of the IMF Charter; and
       Whereas the Financial Action Task Force has warned of 
     Argentina's failure to comply with fully 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 nation: Now, therefore, be it
       Resolved, That the Senate--
       (1) finds that the Republic of Argentina has failed to meet 
     the responsibilities inherent to membership in the G20;
       (2) calls upon the President and the Secretary of the 
     Treasury to work with the governments of the G20 to suspend 
     the participation of the Republic of Argentina in the G20 
     until the Government of Argentina has fully demonstrated its 
     intent to adhere to international norms of economic relations 
     and to commit to the rule of law; and
       (3) calls upon the President and the Secretary of the 
     Treasury to work with the governments of the G20 members to 
     condition any reinstatement of Argentina's membership in the 
     G20 on its demonstrated compliance with its international 
     commitments and obligations.

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