[Weekly Compilation of Presidential Documents Volume 39, Number 50 (Monday, December 15, 2003)]
[Page 1780]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Romania-United States Additional 
Protocol Concerning the Reciprocal Encouragement and Protection of 
Investment

December 9, 2003

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 Romania 
Concerning the Reciprocal Encouragement and Protection of Investment of 
May 28, 1992, 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 Additional Protocol.
    My Administration expects to forward to the Senate shortly analogous 
Additional Protocols for Bulgaria, the Czech Republic, Estonia, Latvia, 
Lithuania, Poland, and the Slovak Republic. Each of these Additional 
Protocols is the result of an understanding the United States reached 
with the European Commission and six countries that will join the 
European Union (EU) on May 1, 2004 (the Czech Republic, Estonia, Latvia, 
Lithuania, Poland, and the Slovak Republic), 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 Romania, 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 
European Union 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 Additional 
Protocol preserves the U.S. BIT with Romania, with which the United 
States has an expanding relationship, and the protections it affords 
U.S. investors even after Romania joins the EU. Without it, the European 
Commission would likely require Romania to terminate its U.S. BIT upon 
accession because of existing and possible future incompatibilities 
between our current BIT and EU law.
    I recommend that the Senate consider this Additional Protocol as 
soon as possible, and give its advice and consent to ratification at an 
early date.
                                                George W. Bush
 The White House,
 December 9, 2003.