[Weekly Compilation of Presidential Documents Volume 40, Number 12 (Monday, March 22, 2004)]
[Pages 405-406]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Estonia-United States Additional 
Protocol Amending the Reciprocal Encouragement and Protection of 
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 Protocol Between the Government of 
the United States of America and the Government of the Republic of 
Estonia to the Treaty for the Encouragement and Reciprocal Protection of 
Investment of April 19, 1994, signed at Brussels on October 24, 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

[[Page 406]]

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 Estonia, 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 Estonia, with which the United States has an 
expanding relationship, and the protections it affords U.S. investors 
even after Estonia joins the EU. Without it, the European Commission 
would likely require Estonia 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 Protocol as soon as 
possible, and give its advice and consent to ratification at an early 
date.
                                                George W. Bush
 The White House,
 March 12, 2004.

Note: This item was not received in time for publication in the 
appropriate issue.