ALCA FTAA ZLEA - Investment: Standards - Paraguay/Peru

Free Trade Area of the Americas - FTAA

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Investment Agreements in the Western Hemisphere: A Compendium

Agreement Between Paraguay and Peru
31 January 1994

Subject: III. Treatment

A. Standards

1. Fair & Equitable Treatment
Yes. Each Contracting Party shall guarantee fair and equitable treatment to investments of investors of the other Contracting Parties. (Article 4 (2)).

2. Full Protection and Security
Each Contracting Party shall protect, in its territory, investments made, according to its laws and regulations, by nationals of the other Contracting Party. (Article 4 (1)).

3. Non-Discrimination
Yes. Each Contracting Party shall not impair the management, utilization, enjoyment, growth, sale and, disposal of investments of nationals of the other Contracting Party. As mentioned in Article 3 (2), each Contracting Party shall grant permits necessary in relation to this investment. (Article 4 (1)).

4. National Treatment
Yes. The treatment accorded to investments of nationals of the other Contracting Party shall be no less favorable than that accorded to investments of its own nationals or investments of nationals of a third country (MFN), when the MFN treatment is more favorable. (Article 4 (2)).

5. Most-Favored-Nation Treatment
Yes. The treatment accorded to investments of nationals of the other Contracting Party shall be no less favorable than that accorded to investments of its own nationals or investments of nationals of a third country (MFN), when the MFN treatment is more favorable. (Article 4 (2)).

B. Exceptions
MFN treatment shall not apply to the privileges that a Contracting Party accords to investments of nationals of a third country by virtue of its participation or association in a free trade area, customs union or common market (Article 4 (3)) or by virtue of a taxation agreement (Article 4 (4)). This Treaty shall not preclude any Contracting Party from applying measures necessary for the maintenance of the public order or national security, in accordance with the general principles of international law. (Article 11 (1)).

C. Other Aspects

1. Performance Requirements

2. Others
Nationals or enterprises of one Contracting Party suffering losses with respect to their investment in the territory of the other Contracting Party due to war or armed conflict, revolution national emergency, revolt, insurrection or uprising shall not be treated less favorably than investors of this Contracting Party or those of any third State, with regard to restitution, indemnification or other payments. These payments shall be transferable, according to Article 5 of the Treaty. (Article 6 (3)). Article 10 says that each Contracting Party shall respect the obligations it has entered into with regard to the investments of nationals of the other Contracting Party.


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