The bilateral investment agreement between the United States and Argentina provides for binding international arbitration of investment disputes that cannot be settled through amicable consultation and negotiation between the parties. However, due to the relative immaturity of the Argentine judicial system, foreign investors are not advised to rely on legal recourse in resolving disputes. No performance requirements are aimed specifically at foreign investors. Government incentives apply to foreign and domestic firms. The Ministry of Economy administers a complex incentive regime involving quotas and tariffs for auto manufacturers.
Special regimes apply to mining, oil and gas, and other natural resources.
The Argentine Congress ratified the Uruguay round agreements, including the provisions on intellectual property, as Law 24.425 on January 5, 1995. Patent law is the weakest element in Argentine intellectual property rights, and extension of adequate patent protection to pharmaceuticals has been a highly contentious bilateral issue. After years of protracted debate, the Argentine Executive issued a pharmaceutical patent decree in 1996, which fell far short of the Argentine Government's commitments to the United States. The decree imposed a five-year transition period for pharmaceuticals, contains no pipeline protection, and grants the government broad discretion to issue compulsory licenses. In early 1997, the U.S. announced it would suspend 50 percent of Argentina's benefits under the generalized system of preferences because of the unsatisfactory pharmaceutical patent law.