    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book I)]
    [March 12, 2004]
    [Pages 385-386]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Additional Protocol to the
    Latvia-United States Investment Treaty
    March 12, 2004

    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 Additional Protocol Between the
    Government of the United States of America and the Government of the
    Republic of Latvia to the Treaty for the Encouragement and Reciprocal
    Protection of Investment of January 13, 1995, signed at Brussels on
    September 22, 2003. I transmit also, for the information of the Senate,
    the report of the Department of State with respect to this Protocol.
        I have already forwarded to the Senate similar Protocols for Romania
    and Bulgaria and now forward simultaneously to the Senate Protocols for
    the Czech Republic, Estonia, Latvia, Lithuania, Poland, and the Slovak
    Republic. Each of these Protocols is the result of an understanding the
    United States reached with the European Commission and these six
    countries that will join the European Union (EU) on May 1, 2004, as well
    as with Bulgaria and Romania, which are expected to join the EU in 2007.
        The understanding is designed to preserve U.S. bilateral investment
    treaties (BITs) with each of these countries after their accession to
    the EU by establishing a framework acceptable to the European Commission
    for avoiding or remedying present and possible future incompatibilities
    between their BIT obligations and their future obligations of EU
    membership. It expresses the U.S. intent to amend the U.S. BITs,
    including the BIT with Latvia, in order to eliminate incompatibilities
    between certain BIT obligations and EU law. It also establishes a
    framework for addressing any future incompatibilities that may arise as
    EU authority in the area of investment expands in the future, and
    endorses the principle of protecting existing U.S. investments from any
    future EU measures that may restrict foreign investment in the EU.
        The United States has long championed the benefits of an open
    investment climate, both at home and abroad. It is the policy of the
    United States to welcome market-driven foreign investment and to permit
    capital to flow freely to seek its highest return. This Protocol
    preserves the U.S. BIT with Latvia, with which the United States has an
    expanding relationship, and the protections it affords U.S. investors
    even after Latvia joins the EU. Without it, the European Commission
    would likely require Latvia to terminate its U.S. BIT upon accession
    because of existing and possible future incompatibilities between our
    current BIT and EU law.

    [[Page 386]]

        I recommend that the Senate consider this Protocol as soon as
    possible, and giveits advice and consent to ratification at an early
    date.

                                                              George W. Bush

     The White House,

     March 12, 2004.