Scope of Application [Return to the top of the page]

DEFINITION OF INVESTMENT

The term “investment” comprises any kind of asset held or invested, either directly, or indirectly through an investor of a third State, by an investor of one Contracting Party in the territory of the other Contracting Party, according to the latter’s laws and regulations. This general definition is illustrated by a non exhaustive list of five groups of specific rights, including:

• traditional property rights;
• rights in companies;
• monetary claims and titles to performance (loans directly related to a specific investment);
• intellectual property rights; and,
• concessions and similar rights. (Article I (a)).

DEFINITION OF INVESTOR

Nationals

The term “investor” includes any natural person who makes the investment possessing the citizenship of or permanently residing in a Contracting Party in accordance with its laws. (Article I (b)(I)).

Provisions on transfer of funds and settlement of investment disputes shall not apply to investments made in the territory of one Contracting Party by natural persons who are nationals of the other Contracting Party if they have been domiciled in the host country for more than two years, unless it is proved that the investment was admitted from abroad. (Article XIV (2)).

Companies

The term “investor” includes:

• in respect to Canada, any juridical person, including corporations, partnerships, trusts, joint ventures, organizations, associations or enterprises incorporated or duly constituted in accordance with applicable laws of that Contracting Party, or,
• in respect to the Republic of Argentina, any juridical person constituted according to the laws and regulations of the Republic of Argentina or having a seat in the territory of the Republic of Argentina, who makes the investment. (Article I (b)(ii)(iii)).

Application in Time (Entry into Force and Duration: Applicability to Investments made Prior to Entry into Force)

Date of signature: November 5, 1991
Entry into force: April 29, 1993
Duration: The Agreement will remain in force unless either Contracting Party notifies in writing the other Party of its intention to terminate it.
The Agreement shall apply to investments made before or after its entry into force.

Admission [Return to the top of the page]

Subject to its laws and regulations, each Contracting Party shall admit investments of investors of the other Contracting Party. (Article II (2)). This agreement shall not preclude either Contracting Party from prescribing laws and regulations in connection with the establishment of a new business enterprise or the acquisition of a business enterprise in its territory, provided that such laws and regulations are applied equally to all foreign investors. Decisions taken pursuant to such laws and regulations are not subject to the provisions of Articles X (Settlement of Disputes between an Investor and the Host Contracting Party) or XII (Disputes between Contracting Parties). (Article II (3)).

Treatment [Return to the top of the page]

STANDARDS

Fair and Equitable Treatment

Yes. Investments or returns of investors of either Contracting Party shall at all times be accorded fair and equitable treatment in accordance with principles of international law. (Article II (4)).

Full Protection and Security

Yes. Investments or returns of investors of either Contracting Party shall enjoy full protection and security in the territory of the other Contracting Party. (Article II (4)).

Non-Discrimination

---

National Treatment

Yes. Each Contracting Party shall, to the extent possible and in accordance with its laws and regulations, grant to investments or returns of investors of the other Contracting Party treatment no less favorable than that which it grants to investments or returns of its own investors. (Article IV).

Most-Favored Nation Treatment

Yes. Each Contracting Party shall grant to investments or returns of investors of the other Contracting Party in its own territory, treatment no less favorable than that which it grants to investments or returns of investors of any third State. (Article III (1)). Each Contracting Party shall grant investors of the other Contracting Party, as regards their management, use, enjoyment, transfer or disposal of their investments or returns in its territory, treatment no less favorable than that which it grants to investors or any third State. (Article III (2)).

Exceptions

The provisions of this Agreement shall not be construed so as to oblige one Contracting Party to extend to the investors of the other Contracting Party the benefits of any treatment, preference or privilege resulting from:

1. any existing or future bilateral or multilateral agreement establishing a free trade area or customs union; liberalizing trade in services; for mutual economic assistance, integration or cooperation; and relating to taxation; and
2. the bilateral economic cooperation agreements concluded by Argentina with Italy on December 10, 1987 and with Spain on June 3, 1988 respectively. (Article V).

OTHER ASPECTS

Performance Requirements

---

Others

When a matter is covered both by the provisions of this Agreement and any other international agreement to which both Contracting Parties are bound, nothing in this Agreement shall prevent an investor of one Contracting Party that has investments in the territory of the other Contracting Party from benefitting from the most favorable regime. (Article XIII (1)). Investors of one Contracting Party who suffer losses because their investments or returns in the territory of the other Contracting Party are affected by armed conflict, revolution, civil strife, national emergency or a natural disaster in that territory, shall be accorded by such latter Contracting Party, in respect of restitution, indemnification, compensation or other settlement, treatment consistent with international law and no less favorable than that it accords to its own investors or to investors of any third State. (Article VI).

Transfers [Return to the top of the page]

TYPES OF PAYMENT

Returns

Yes. Each Contracting Party shall guarantee to an investor of the other Contracting Party the unrestricted transfer of investments and returns. Without limiting the generality of the foregoing, each Contracting Party shall also guarantee to the investor the unrestricted transfer of:

1. funds in repayment of loans directly related to a specific investment;
2. the proceeds of the total or partial liquidation of any investment;
3. wages and other remuneration accruing to a citizen of the other Contracting Party who was permitted to work in connection with an investment in the territory of the other Contracting Party;
4. any compensation owed to an investor by virtue of Articles VI or VII of this Agreement. (Article VIII (1)).

Repayment of Loans

Yes. (Article VIII (1) (a)).

Proceeds of the Total or Partial Liquidation of an Investment

Yes. (Article VIII (1) (b)).

Licenses and Other Fees

----

Other categories of Payment

Yes. (Article VIII (1) (c), (d)).

CONVERTIBILITY AND EXCHANGE RATES

Currency

Transfers shall be effected without delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed by the investor and the Contracting Party concerned and in accordance with the procedure established by that Contracting Party. (Article VIII (2)).

Exchange Rates

Unless otherwise agreed by the investor, transfers shall be made at the rate of exchange applicable on the date of transfer. (Article VIII (2)).

Time of Transfer

Transfers shall be effected without delay. (Article VIII (2)).

Expropriation [Return to the top of the page]

DEFINITION

Covered Expropriatory Measures

Expropriation, nationalization or measures which have a similar effect. (Article VII (1)).

CONDITIONS

Public Purpose and Non-Discrimination

Yes. (Article VII (1)).

Due Process of Law and Judicial Review

Yes. (Article VII (1) (2)).

Other

-----

Compensation Standard; Form and Time of Payment

“Prompt, adequate and effective compensation” Compensation shall:

• be based on the genuine value of the investment immediately before the expropriation or at the time the proposed expropriation became public knowledge, whichever is earlier;
• be payable from the date of the expropriation at a normal commercial rate of interest;
• be paid without delay;
• be effectively realizable and freely transferable. (Article VII (1)).

Settlement of Disputes between Contracting Parties
[Return to the top of the page]

Pre-Arbitration Negotiations

Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, whenever possible, be settled amicably through consultations. (Article XII (1)). If it cannot be settled through consultation, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article XII (2)).

ARBITRATION

Constitution of the Tribunal

An arbitral tribunal shall be constituted for each dispute.

• Within two months of the request of arbitration, each Party shall appoint an arbitrator.
• The two arbitrators are required to select, within the next two months, a national of a third State who serves as Chairman of the tribunal. When agreement cannot be reached, the President of the International Court of Justice might be entrusted by either Contracting Party with the responsibility of making the appointment. There are also additional provisions to cover cases when the President is a national of either Party or is otherwise prevented from fulfilling this function.
• Regarding costs, each Party is required to bear the expenses of its own member of the tribunal and of its representation in the proceedings, while the costs related to the Chairman are to be paid for equally by the Parties. The Tribunal may, however, direct that a higher proportion of the costs be paid by one of the Parties. (Article XII (3) (4) (6)).

Procedural Rules of the Tribunal

The arbitral tribunal shall determine its own procedure. Decisions of the tribunal shall be taken by a majority of votes and shall be binding on both Parties. The decision shall be rendered within six months of the appointment of the Chairman. (Article XII (5)).

Applicable Law

No reference.

Settlement of Disputes between a Contracting Party and an Investor [Return to the top of the page]

DEFINITION

---

PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS

Disputes which arise between an investor of one Party and the other Party with regard to an investment of the former, which have not been amicably settled, shall be submitted, at the request of one of the Parties involved, to the decision of the competent tribunal of the Party in whose territory the investment was made. (Article X (1)).

ARBITRAL SETTLEMENT OF DISPUTES

---

Conditions

---

Consent

---

Forms of Arbitration

The arbitral tribunal shall decide the dispute in accordance with the provisions of the Agreement; with reference to the laws of the Contracting Party involved in the dispute; terms of any specific agreement concluded in relation to such an investment; and, principles of international law. (Article X(4)).

Applicable Law

---