Moreover, such treatment does not apply to privileges accorded by a Contracting Party to nationals or companies of third States with respect to an investment related to concessional financing provided in a bilateral agreement between a Contracting Party and the country where the investment came from. (Article 3 (3)).

Nationals or companies of one Contracting Party suffering losses due to war or armed conflict, revolution, national emergency or uprising in the territory of the other Contracting Party shall not be treated less favorably than investors or companies of the latter Contracting Party with regard to restitution, compensation, indemnification or other settlement. These payments shall be transferable. (Article 4 (3)).

Transfers [Return to the top of the page]

TYPES OF PAYMENT

Returns

Yes. Each Contracting Party shall guarantee to nationals or companies of the other Contracting Party the free transfer of payments with respect to investments, in particular:

1. capital and additional amounts for maintaining or increasing capital;
2. returns or incomes;
3. amortization of loans;
4. proceeds of the sale or of the total or partial liquidation of an investment;
5. indemnifications as defined in Article 4. (Article 5 (1)).

Repayment of Loans

Yes. (Article 5 (1) (c)).

Proceeds of the Total or Partial Liquidation of an Investment

Yes. (Article 5 (1) (d)).  

Licenses and Other Fees

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Other Categories of Payment

Yes. (Article 5 (1) (a), (e)).

CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER

Currency

The transfer shall be effected without delay in accordance with the procedure established in the territory of each Contracting Party, in convertible currency at the rate in effect which shall be equivalent to the most favorable exchange rate. (Article 5 (2)).

Exchange Rates

The transfer shall be effected in convertible currency at the rate in effect which shall be equivalent to the most favorable exchange rate. (Article 5 (2)).

Time of Transfer

The transfer shall be effected without delay. (Article 5 (2)). A transfer shall be considered without delay when effected within the normal time necessary to fulfill the formalities with respect to the transfer. In any case, the time shall not exceed two months, starting when the request is presented. (Article 5 (3)). Notwithstanding the provisions of Article 5 of the Treaty, Chile shall guarantee the right of repatriation for the capital invested by Argentine investors, three years after its arrival. (Paragraph 3 of the Protocol).

Expropriation [Return to the top of the page]

DEFINITION

Covered Expropriatory Measures

Expropriation, nationalization or measures which have a similar effect. (Article 4 (2)).

CONDITIONS

Public Purpose and Non-Discrimination

Yes. No mention of non-discrimination. (Article 4 (2)).

Due Process of Law and Judicial Review

Yes. (Article 4 (2)).

Other

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Compensation Standard; Form and Time of Payment

Compensation shall:

• amount to the value of the investment before the effective or impending expropriation became publicly known;
• be effectively realizable and freely transferable. (Article 4 (2)).

Settlement of Disputes between Contracting Parties
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PRE-ARBITRATION NEGOTIATIONS

Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, whenever possible, be settled amicably. (Article 9 (1)).
If it cannot be settled amicably, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal for decision. (Article 9 (2)).

ARBITRATION

Constitution of the Tribunal

The arbitral tribunal shall be constituted ad hoc.

• Within two months of the request of arbitration, each Party shall appoint an arbitrator.
• The two arbitrators are required to select, within the next three 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. (Article 9 (3) (4) (5)).

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. (Article 9 (5)).

Applicable Law

No reference.

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

DEFINITION

Any dispute relating to investments between an investor of one Contracting Party and the other Contracting Party will, to the extent possible, be settled through amicable consultations. If it was not possible to settle the dispute within a period of six months, it shall be submitted, at the request of the investor:

1. to the competent tribunals of the host party; or
2. to international arbitration.

Election by the investor of either one of these procedures shall be definitive. (Article 10 (1)(2)).

PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS

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ARBITRAL SETTLEMENT OF DISPUTES

Conditions

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Consent

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Forms of Arbitration

Where the dispute is referred to international arbitration, the investor may refer the dispute to:

1. ICSID, provided each Contracting Party is a party to the ICSID Convention. (For the interim period, both parties give their consent to the submission of the dispute to the ICSID Additional Facility Rules); or
2. an ad hoc arbitration tribunal established under the UNCITRAL Arbitration Rules. (Article 10 (3)).

Applicable Law

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 10 (4)).