ALCA FTAA ZLEA - Investment: Standards - Chile/Ecuador

Free Trade Area of the Americas - FTAA

Ministerial
Declarations

Trade Negotiations
Committee

Negotiating
Groups

Special
Committees

Business
Facilitation

Civil
Society

Trade&Tariff
Database

Hemispheric
Cooperation
Program

Home Countries Sitemap A-Z list Governmental Contact Points

Investment Agreements in the Western Hemisphere: A Compendium

Agreement Between Chile and Ecuador
27 October 1993

Subject: III. Treatment

A. Standards

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

2. Full Protection and Security
Yes. Once admitted, investments of investors of the other Contracting Party shall be accorded full legal protection. (Article IV (2)).

3. Non-Discrimination
Yes. Each Contracting Party shall not impair the management, maintenance, use, enjoyment, usufruct, extension, liquidation or disposal of investments of investors of the other Contracting Party through unjustified or discriminatory measures. (Article IV (1)).

4. National Treatment
Yes. Each Contracting Party shall accord to investments of investors of the other Contracting Party treatment no less favorable than that it grants to its own investors or those of third States. (Article IV (2)).

5. Most-Favored-Nation Treatment
Yes. Each Contracting Party shall accord to investments of investors of the other Contracting Party treatment no less favorable than that it grants to its own investors or those of third States. (Article IV (2)).

B. Exceptions
MFN provisions will not apply to the privileges that each Contracting Party accords to investors of third States as a result of its participation or association in a free trade area, customs union, common market or regional agreement. (Article IV (3)). A Contracting Party is not obliged to extend the benefits of the national treatment and MFN provisions of Article IV (2) to investors of the other Contracting Party as a result of a taxation agreement. (Article IV (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 to investments of investors of the first Contracting Party a more favorable treatment, these provisions shall prevail (if they are more favorable). (Article VIII). Investors of one Contracting Party, suffering losses due to war or armed conflict, revolution, national emergency, revolt, insurrection or uprising in the territory of the other Contracting Party, shall not be treated less favorably than investors of this Contracting Party or those of any third State with regard to restitution, compensation, indemnification or other settlement. These payments shall be transferable. (Article V (2)).


countries	sitemap	a-z list	governmental contact points