[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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