ALCA FTAA ZLEA - Bilateral Investment Treaties: Standards - Argentina/Chile

Free Trade Area of the Americas - FTAA

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Investment Agreements in the Western Hemisphere: A Compendium

Treaty Between Argentina and Chile
2 August 1991

Subject: III. Treatment

A. Standards

1. Fair & Equitable Treatment
Yes. (Article 2 (1)).

2. Full Protection and Security
Yes. Investments of nationals or companies of the other Contracting Party shall enjoy full protection. (Article 2 (2)).

3. Non-Discrimination
Yes. Each Contracting Party shall not impair the management, use, enjoyment or disposal of investments of investors of the other Contracting Party through arbitrary or discriminatory measures. (Article 2 (3)).

4. National Treatment
Yes. With respect to investments of nationals or companies of the other Contracting Party (paragraph 1) and nationals or companies of the other Contracting Party with regard to their activities related to investments (paragraph 2), each Contracting Party shall grant treatment no less favorable than that it grants to investments of its own nationals or companies (paragraph 1), or those of third state; and to its own nationals and companies (paragraph 2) and those of third States. (Article 3).

5. Most-Favored-Nation Treatment
Yes. With respect to investments of nationals or companies of the other Contracting Party (paragraph 1) and nationals or companies of the other Contracting Party with regard to their activities related to investments (paragraph 2), each Contracting Party will grant treatment no less favorable than that it grants to investments of its own nationals or companies (paragraph 1) and those of third state; and to its own nationals and companies (paragraph 2) and those of third States. (Article 3).

B. Exceptions
Treatment accorded in Article 3 does not apply to privileges accorded by either Contracting Party to nationals and companies of third States, by virtue of membership or association with a customs union or economic union, common market or free trade area. (Article 3 (3)). 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)). Treatment accorded in Article 3 does not apply to privileges accorded to nationals and companies of third States under a taxation agreement. (Article 3 (4)).

C. Other Aspects

1. Performance Requirements

2. Others
If the provisions in the legislation of a Contracting Party, or if the existing or future obligations under international law between the two Contracting Parties, or if an agreement between an investor of a Contracting Party and the other Contracting Party include provisions granting investments of investors of the first Contracting Party a more favorable treatment, these provisions shall prevail (if they are more favorable). (Article 7 (1)). Each Contracting Party shall fulfill the other obligations it has contracted with respect to the investments of nationals or companies of the other Contracting Party. 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)). (Article 7 (2)).


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