TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13031 

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INVESTMENT GUARANTIES 

 Agreement Between the 

UNITED STATES OF AMERICA 

and the UNITED KINGDOM OF 

GREAT BRITAIN AND 

NORTHERN IRELAND 

Signed at Washington April 20, 1999 

 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 UNITED KINGDOM OF GREAT BRITAIN 

 AND NORTHERN IRELAND 

 Investment Guaranties 

Agreement signed at Washington April 20, 1999; 

Entered into force April 20, 1999. 
AGREEMENT

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN

AND NORTHERN IRELAND ON BEHALF OF THE

TURKS AND CAICOS ISLANDS RELATING TO INVESTMENT INCENTIVES

THE GOVERNMENT OF THE UNITED STATES OF AMERICA and THE

GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND

NORTHERN IRELAND, on behalf of the Government of the Turks and Caicos

Islands;

AFFIRMING their common desire to encourage economic activities in the Turks

and Caicos Islands that promote the development of the economic resources and

productive capacities of the Turks and Caicos Islands; and

RECOGNIZING that this objective can be promoted through investment support

provided by the Overseas Private Investment Corporation ("OPIC"), a development

institution and an agency of the United States of America, in the form of investment

insurance and reinsurance, debt and equity investments and investment guaranties;

HAVE AGREED as follows:

ARTICLE 1

As used in this Agreement, the following terms have the meanings herein

provided. The term "Investment Support" refers to any debt or equity investment, any

investment guaranty and any investment insurance or reinsurance which is provided by

the Issuer in connection with a project in the territory of the Turks and Caicos Islands.

The term "Issuer" refers to OPIC and any successor agency of the United States of

America, and any agent of either. The term "Taxes" means all present and future taxes,

levies, imposts, stamps, duties and charges, whether direct or indirect, imposed in the

Turks and Caicos Islands and all liabilities with respect thereto.

ARTICLE 2

The Governments of the United Kingdom of Great Britain and Northern Ireland,

including the Turks and Caicos Islands, and the United States of America, confirm their

understanding that the Issuer's activities are governmental in nature and therefore:

(a)	The Issuer shall not be subject to regulation under the laws of the Turks

and Caicos Islands applicable to insurance or financial organizations, but, in the provision
of Investment Support, shall be afforded all rights and have access to all remedies of any

such entity, whether domestic, foreign or multilateral.

(b) All operations and activities undertaken by the Issuer in connection with

any Investment Support, and all payments, whether of interest, principal, fees, dividends,

premiums or the proceeds from the liquidation of assets or of any other nature, that are

made, received or guaranteed by the Issuer in connection with any Investment Support

shall be exempt from Taxes, whether imposed directly on the Issuer or payable in the first

instance by others in respect of such payments. Neither projects receiving Investment

Support nor investors in such projects shall be exempt from Taxes by operation of this

Article, provided, however, that any project receiving Investment Support shall be

accorded tax treatment no less favorable than that accorded to a project receiving

investment support by any other national or multilateral development institution which

operates in the Turks and Caicos Islands. The Issuer shall not be subject to Taxes in

connection with any transfer, succession or other acquisition which occurs pursuant to

paragraph (c) of this Article or Article 3(a) hereof, but obligations for Taxes previously

accrued and unpaid with respect to interests received by the Issuer shall not be

extinguished as a result of such transfer, succession or other acquisition.

(c) If the Issuer makes a payment to any person or entity, or exercises its

rights as a creditor or subrogee, in connection with any Investment Support, the

Government of the Turks and Caicos Islands shall recognize the transfer to, or acquisition

by, the Issuer of any cash, accounts, credits, instruments or other assets in connection

with such payment or the exercise of such rights, as well as the succession of the Issuer to

any right, title, claim, privilege or cause of action existing, or which may arise, in

connection therewith; provided that, to the extent that the laws of the Turks and Caicos

Islands partially or wholly invalidate or prohibit the transfer or acquisition of any such

interest in any property within the territory of the Turks and Caicos Islands to the Issuer,

the Government of the Turks and Caicos Islands shall permit the Issuer to make

appropriate arrangements pursuant to which such interests are transferred to a person or

entity permitted to own such interests under the laws of the Turks and Caicos Islands.

(d) With respect to any interests transferred to the Issuer or any interests to

which the Issuer succeeds under this Article, the Issuer shall assert no greater rights than

those of the person or entity from whom such interests were received, provided that

nothing in this Agreement shall limit the right of the Government of the United States of

America to assert a claim under international law in its sovereign capacity, as distinct

from any rights it may have as the Issuer pursuant to paragraph (c) of this Article.

ARTICLE 3

(a) Funds in the currency of the Turks and Caicos Islands, including cash,

accounts, credits, instruments or otherwise, acquired by the Issuer upon making a

payment, or upon the exercise of its rights as a creditor, in connection with any

Investment Support provided by the Issuer for a project in the Turks and Caicos Islands,

shall be accorded treatment in the territory of the Turks and Caicos Islands no less

favorable as to use than the treatment to which such funds would have been entitled in the

hands of the person or entity from which the Issuer acquired such amounts.

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(b) Such currency and credits may be transferred by the Issuer to any person

or entity and upon such transfer shall be freely available for use by such person or entity

in the territory of the Turks and Caicos Islands in accordance with its laws.

ARTICLE 4

(a) Any dispute between the Government of the United States of America and

the Government of the United Kingdom of Great Britain and Northern Ireland, including

the Turks and Caicos Islands, regarding the interpretation of this Agreement or which, in

the opinion of one of the Governments, presents a question of international law arising

out of any project or activity for which Investment Support has been provided shall be

resolved, insofar as possible, through negotiations between the two Governments. If, six

months following a request for negotiations hereunder, the two Governments have not

resolved the dispute, the dispute, including the question of whether such dispute presents

a question of international law, shall be submitted, at the initiative of either Government,

to an arbitral tribunal for resolution in accordance with paragraph (b) of this Article.

(b) The arbitral tribunal referred to in paragraph (a) of this Article shall be

established and shall function as follows:

(i) Each Government shall appoint one arbitrator. These two

arbitrators shall by agreement designate a president of the tribunal who shall be a

citizen of a third state and whose appointment shall be subject to acceptance by

the two Governments. The arbitrators shall be appointed within three months, and

the president within six months, of the date of receipt of either Government's

request for arbitration. If the appointments are not made within the foregoing

time limits, either Government may, in the absence of any other agreement,

request the Secretary-General of the International Centre for the

Settlement of Investment Disputes to make the necessary appointment or

appointments. Both Governments hereby agree to accept such appointment or

appointments.

(ii) Decisions of the arbitral tribunal shall be made by majority vote

and shall be based on the applicable principles and rules of international law. Its

decision shall be final and binding.

(iii) During the proceedings, each Government shall bear the expense

of its arbitrator and of its representation in the proceedings before the tribunal,

whereas the expenses of the president and other costs of the arbitration shall be

paid in equal parts by the two Governments. In its award, the arbitral tribunal

may reallocate expenses and costs between the two Governments.

(iv) In all other matters, the arbitral tribunal shall regulate its own

procedures.

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ARTICLE 5

(a) This Agreement shall enter into force on the date of signature.

(b) This Agreement shall continue in force until six months from the date of a

receipt of a note by which one Government informs the other of an intent to terminate this

Agreement. In such event, the provisions of this Agreement shall, with respect to

Investment Support provided while this Agreement was in force, remain in force so long

as such Investment Support remains outstanding, but in no case longer than twenty years

after the termination of this Agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective

Governments, have signed this Agreement.

DONE in duplicate at Washington this 20th day of April, 1999.

FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF

THE UNITED KINGDOM OF GREAT

BRITAIN AND NORTHERN IRELAND:

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