    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book I)]
    [April 4, 2006]
    [Pages 643-644]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting a Treaty Between the United States
    and Uruguay Concerning the Encouragement and Reciprocal Protection of
    Investment
    April 4, 2006

    To the Congress 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 choose 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

     The White House,

     April 4, 2006.

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