[Weekly Compilation of Presidential Documents Volume 40, Number 4 (Monday, January 26, 2004)]
[Pages 112-113]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Additional Protocol Amending the 
Bulgaria-U.S. Treaty Concerning the Encouragement and Reciprocal 
Protection of Investment

January 21, 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 
United States of America and the Republic of Bulgaria amending the 
Treaty Between the United States of America and the Republic of Bulgaria 
Concerning the Encouragement and Reciprocal Protection of Investment of 
September 23, 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 has already forwarded to the Senate a similar 
Additional Protocol for Romania and expects to forward to the Senate 
shortly Additional Protocols for 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 Bulgaria, 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 Bulgaria, with which the United 
States has an expanding relationship, and the protections it affords 
U.S. investors even after Bulgaria joins the EU. Without it, the 
European Commission would likely require Bulgaria 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,
 January 21, 2004.

[[Page 113]]