U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–118 

" ! SENATE 109TH CONGRESS

2d Session 

TREATY DOC. 

2006

109–9 

INVESTMENT TREATY WITH URUGUAY 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE 

ORIENTAL REPUBLIC OF URUGUAY CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT 

APRIL 4, 2006.—Treaty was read the first time, and together with the 

accompanying papers, referred to the Committee on Foreign Relations 

and ordered to be printed for the use of the Senate 


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(III)

LETTER OF TRANSMITTAL 

THE WHITE HOUSE, April 4, 2006. 

To the Senate of the United States: 

With a view to receiving the advice and consent of the Senate to 

ratification, I transmit herewith the Treaty between the United 

States and the Oriental Republic of Uruguay Concerning the Encouragement and Reciprocal Protection of Investment, with Annexes and Protocol, signed at Mar del Plata, Argentina, on November 4, 2005. I transmit also, for the information of the Senate, the 

report prepared by the Department of State with respect to the 

Treaty. 

The Treaty is the first bilateral investment treaty (BIT) concluded since 1999 and the first negotiated on the basis of a new 

U.S. model BIT text, which was completed in 2004. The new model 

text draws on long-standing U.S. BIT principles, our experience 

with Chapter 11 of the North American Free Trade Agreement 

(NAFTA), and the executive branch’s collaboration with the Congress in developing negotiating objectives on foreign investment for 

U.S. free trade agreements. The Treaty will establish investment 

protections that will create more favorable conditions for U.S. investment in Uruguay and assist Uruguay in its efforts to further 

develop its economy. 

The Treaty is fully consistent with U.S. policy towards international and domestic investment. A specific tenet of U.S. investment policy, reflected in this Treaty, is that U.S. investment 

abroad and foreign investment in the United States should receive 

national treatment and most-favored-nation treatment. Under this 

Treaty, the Parties also agree to customary international law 

standards for expropriation and for the minimum standard of treatment. The Treaty includes detailed provisions regarding the computation and payment of prompt, adequate, and effective compensation for expropriation; free transfer of funds related to investment; freedom of investment from specified performance requirements; and the opportunity of investors to chose to resolve disputes 

with a host government through international arbitration. The 

Treaty also includes extensive transparency obligations with respect to national laws and regulations, and commitments to transparency and public participation in dispute settlement. The Parties 

also recognize that it is inappropriate to encourage investment by 

weakening or reducing the protections afforded in domestic environmental and labor laws. 

I recommend that the Senate give early and favorable consideration to the Treaty and give its advice and consent to ratification. 

GEORGE W. BUSH. 


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(V)

LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, 

Washington, DC, March 9, 2006. 

The PRESIDENT, 

The White House. 

THE PRESIDENT: I have the honor to submit to you the Treaty between the United States of America and the Oriental Republic of 

Uruguay Concerning the Encouragement and Reciprocal Protection 

of Investment, with Annexes and Protocol, signed at Mar del Plata 

on November 4, 2005. I recommend that this Treaty, with Annexes 

and Protocol, be transmitted to the Senate for its advice and consent to ratification. 

Although there are currently 39 bilateral investment treaties 

(BITs) in force to which the United States is a party, this Treaty 

with Uruguay is the first BIT concluded in almost six years and 

the first negotiated on the basis of expanded core investment principles that protect U.S. investments abroad. These expanded core 

principles include additional provisions, such as extensive transparency obligations, commitments to transparency and public participation in dispute settlement, and a recognition by the Parties 

that it is inappropriate to encourage investment by weakening or 

reducing the protections afforded in domestic environmental and 

labor laws. It is the Administration’s policy to maintain broad consistency between BITs and the investment chapters of FTAs. 

An overview of key provisions of the U.S.-Uruguay BIT is enclosed. 

The other U.S. Government agencies that participated in negotiating the Treaty (the Office of the United States Trade Representative, the Department of Commerce, the Department of the Treasury, and others) join me in recommending that it be transmitted 

to the Senate at an early date. 

Repsectfully submitted, 

CONDOLEEZZA RICE. 

Enclosure: As stated. 


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