Source: http://www.sice.oas.org/Investment/BITSbyCountry/BITs/US_Rwanda_e.asp
Timestamp: 2018-09-19 00:48:44
Document Index: 643320933

Matched Legal Cases: ['§ 2011', '§ 2133', '§ 2134', '§ 181', '§ 2194', '§ 40102', '§ 1641', '§ 77', '§ 781', '§ 310', '§ 1601', '§ 19', '§ 12101', '§ 50501', '§ 1151', '§ 50111', '§ 1738', '§ 55109', '§ 55103', '§ 40701', '§ 42301', '§ 50101', '§ 40101', '§ 55114', '§ 72', '§ 619', '§ 1463', '§ 1751', '§ 3104', '§ 80', '§ 221', '§ 3102', '§ 3103', '§ 3102', '§ 77', '§ 5341', '§ 78', '§ 1421', '§ 1451', '§ 1717', '§ 2011', '§ 2279', '§ 1087', '§ 9304', '§ 249']

SICE - Investment - Bilateral Investment Treaties - United States – Rwanda
Treaty between the Government of the United States of America and the Government of the Republic of Ruwanda Concerning Encouragement and Reciprocal Protection of Investment
The Government of the United States of America and the Government of the Republic of Rwanda (hereinafter the "Parties");
SECTION A Article 1: Defmitions
"Centre" means the International Centre for Settlement of Investment Disputes ("ICSID") established by the ICSID Convention.
"freely usable currency" means "freely usable currency" as determined by the International Monetary Fund under its Articles of Agreement.
(a) an enterprise;1
(g) licenses, authorizations, permits, and similar rights conferred pursuant to domestic law; 3, 4 and
"investment agreement" means a written agreements between5 a national authority6 of a Party and a covered investment or an investor of the other Party, on which the covered investment or the investor relies in establishing or acquiring a covered investment other than the written agreement itself, that grants rights to the covered investment or investor:
"investor of a Party" means a Party or state enterprise thereof, or a national or an enterprise of a Party, that attempts to make, is making, or has made an investment in the territory of the other Party; provided, however, that a natural person who is a dual national shall be deemed to be exclusively a national of the State of his or her dominant and effective nationality.
(b) for Rwanda, a natural person who is a national of the Republic of Rwanda as defined by the Rwandan Nationality Code in Article 1 of the Organic Law No. 29/2004 of 03/12/2004.
"regional level of government" means, for the United States, a state of the United States, the District of Columbia, or Puerto Rico. For Rwanda, "regional level of government" is not applicable.
A Party's obligations under Section A shall apply:
For greater certainty, paragraph 1 prescribes the customary international law minimum standard of treatment of aliens as the minimum standard of treatment to be afforded to covered investments. The concepts of "fair and equitable treatment" and "full protection and security" do not require treatment in addition to or beyond that which is required by that standard, and do not create additional substantive rights. The obligation in paragraph 1 to provide:
Neither Party may expropriate or nationalize a covered investment either directly or indirectly through measures equivalent to expropriation or nationalization ("expropriation"), except:
Article 8: Performance Requirements
Neither Party may, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party in its territory, impose or enforce any requirement or enforce any commitment or undertaking:11
(f) to transfer a particular technology, a production process, or other proprietary knowledge to a person in its territory;12,13 or
(ii) when the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal, or competition authority to remedy a practice determined after judicial or administrative process to be anticompetitive under the Party's competition laws.14
(c) Provided that such measures are not applied in an arbitrary or unjustifiable manner, and provided that such measures do not constitute a disguised restriction on international trade or investment, paragraphs 1(b), (c), and (f), and 2(a) and (b) , shall not be construed to prevent a Party from adopting or maintaining measures, including environmental measures:
For greater certainty, paragraphs 1 and 2 do not apply to any commitment, undertaking, or requirement other than those set out in those paragraphs.
respecting any matter covered by this Treaty are promptly published or otherwise made publicly available.
For purposes of this Article, "administrative ruling of general application" means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within its ambit and that establishes a norm of conduct but does not include:
(b) On the request of the other Party, the contact point(s) shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communication with the requesting Party.
(a) publish in advance any measure referred to in Article 10(I)(a) that it proposes to adopt; and
With a view to administering in a consistent, impartial, and reasonable manner all measures referred to in Article 10(1)(a), each Party shall ensure that in its administrative proceedings applying such measures to particular covered investments or investors of the other Party in specific cases:
(c) Each Party shall ensure, subject to appeal or further review as provided in its domestic law, that such decisions shall be implemented by, and shall govern the practice of, the offices or authorities with respect to the administrative action at issue.
The Parties recognize that it is inappropriate to encourage investment by weakening or reducing the protections afforded in domestic environmental laws.15 Accordingly, each Party shall strive to ensure that it does not waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws in a manner that weakens or reduces the protections afforded in those laws as an encouragement for the establishment, acquisition, expansion, or retention of an investment in its territory. If a Party considers that the other Party has offered such an encouragement, it may request consultations with the other Party and the two Parties shall consult with a view to avoiding any such encouragement.
For purposes of this Article, "labor laws" means each Party's statutes or regulations,16 or provisions thereof, that are directly related to the following internationally recognized labor rights:
Notwithstanding Articles 3 and 4, a Party may require an investor of the other Party or its covered investment to provide information concerning that investment solely for informational or statistical purposes. The Party shall protect any confidential business information from any disclosure that would prejudice the competitive position of the investor or the covered investment. Nothing in this paragraph shall be construed to prevent a Party from otherwise obtaining or disclosing information in connection with the equitable and good faith application of its law.
A Party may deny the benefits of this Treaty to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if persons of a non-Party own or control the enterprise and the denying Party:
Nothing in this Treaty shall be construed to require a Party to furnish or allow access to confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
Notwithstanding any other provision of this Treaty, a Party shall not be prevented from adopting or maintaining measures relating to financial services for prudential reasons, including for the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed by a financial services supplier, or to ensure the integrity and stability of the financial system.17 Where such measures do not conform with the provisions of this Treaty, they shall not be used as a means of avoiding the Party's commitments or obligations under this Treaty.
(b) For purposes of this paragraph, "public entity" means a central bank or monetary authority of a Party.
Where a claimant submits a claim to arbitration under Section B, and the respondent invokes paragraph 1 or 2 as a defense, the following provisions shall apply:
(a) The respondent shall, within 120 days of the date the claim is submitted to arbitration under Section B, submit in writing to the competent financial authorities19 of both Parties a request for a joint determination on the issue of whether and to what extent paragraph 1 or 2 is a valid defense to the claim. The respondent shall promptly provide the tribunal, if constituted, a copy of such request. The arbitration may proceed with respect to the claim only as provided in subparagraph (d).
(c) If the competent financial authorities of both Parties, within 120 days of the date by which they have both received the respondent's written request for a joint determination under subparagraph (a), have not made a determination as described in that subparagraph, the tribunal shall decide the issue or issues left unresolved by the competent financial authorities. The provisions of Section B shall apply, except as modified by this subparagraph.
(i) In the appointment of all arbitrators not yet appointed to the tribunal, each disputing party shall take appropriate steps to ensure that the tribunal has expertise or experience in financial services law or practice. The expertise of particular candidates with respect to the particular sector of financial services in which the dispute arises shall be taken into account in the appointment of the presiding arbitrator.
(ii) If, before the respondent submits the request for a joint determination in conformance with subparagraph (a), the presiding arbitrator has been appointed pursuant to Article 27(3), such arbitrator shall be replaced on the request of either disputing party and the tribunal shall be reconstituted consistent with subparagraph (c)(i). If, within 30 days of the date the arbitration proceedings are resumed under subparagraph (d), the disputing parties have not agreed on the appointment of a new presiding arbitrator, the Secretary-General, on the request of a disputing party, shall appoint the presiding arbitrator consistent with subparagraph (c)(i).
(iii) The tribunal shall draw no inference regarding the application of paragraph 1 or 2 from the fact that the competent financial authorities have not made a determination as described in subparagraph (a).
(iv) The non-disputing Party may make oral and written submissions to the tribunal regarding the issue of whether and to what extent paragraph 1 or 2 is a valid defense to the claim. Unless it makes such a submission, the non-disputing Party shall be presumed, for purposes of the arbitration, to take a position on paragraph 1 or 2 not inconsistent with that of the respondent.
(i) 10 days after the date the competent financial authorities' joint determination has been received by both the disputing parties and, if constituted, the tribunal; or
(e) On the request of the respondent made within 30 days after the expiration of the 120-day period for a joint determination referred to in subparagraph (c), or, if the tribunal has not been constituted as of the expiration of the 120-day period, within 30 days after the tribunal is constituted, the tribunal shall address and decide the issue or issues left unresolved by the competent financial authorities as referred to in subparagraph (c) prior to deciding the merits of the claim for which paragraph 1 or 2 has been invoked by the respondent as a defense. Failure of the respondent to make such a request is without prejudice to the right of the respondent to invoke paragraph 1 or 2 as a defense at any appropriate phase of the arbitration.
The terms "financial service" or "financial services" shall have the same meaning as in subparagraph 5(a) of the Annex on Financial Services of the GATS.
For greater certainty, nothing in this Treaty shall be construed to prevent the adoption or enforcement by a Party of measures relating to investors of the other Party, or covered investments, in financial institutions that are necessary to secure compliance with laws or regulations that are not inconsistent with this Treaty, including those related to the prevention of deceptive and fraudulent practices or that deal with the effects of a default on financial services contracts, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on investment in financial institutions.
Except as provided in this Article, nothing in Section A shall impose obligations with respect to taxation measures.
Subject to paragraph 5, Articles 3 and 4 shall apply to all taxation measures, other than those on income, capital gains, or on the taxable capital of corporations, taxes on estates, inheritances, gifts, and generation-skipping transfers, except that nothing in those Articles shall apply:
(a) the claimant has first referred to the competent tax authorities20 of both Parties in writing the issue of whether that taxation measure involves an expropriation; and
Subject to paragraph 5, Article 8(2) through (4) shall apply to all taxation measures.
This Treaty shall enter into force thirty days after the date the Parties exchange instruments of ratification. It shall remain in force for a period of ten years and shall continue in force thereafter unless terminated in accordance with paragraph 2.
A Party may terminate this Treaty at the end of the initial ten-year period or at any time thereafter by giving one year's written notice to the other Party.
On the request of either Party, the Parties shall consult promptly to discuss any matters relating to the interpretation or application of this Treaty or to the realization of the objectives of this Treaty. The Parties may agree, in writing, to amend this Treaty. Any such amendment shall enter into force thirty days after the date the Parties exchange instruments of ratification, and shall remain in force so long as this Treaty remains in force.
In the event of an investment dispute, the claimant and the respondent should initially seek to resolve the dispute through consultation and negotiation, which may include the use of nonbinding, third-party procedures.
At least 90 days before submitting any claim to arbitration under this Section, a claimant shall deliver to the respondent a written notice of its intention to submit the claim to arbitration ("notice of intent"). The notice shall specify:
A claim shall be deemed submitted to arbitration under this Section when the claimant's notice of or request for arbitration ("notice of arbitration"):
(b) the claimant's written consent for the Secretary-General to appoint that arbitrator.
The consent under paragraph I and the submission of a claim to arbitration under this Section shall satisfy the requirements of:
(b) Article II of the New York Convention for an "agreement in writing."
(i) for claims submitted to arbitration under Article 24(1)(a), by the claimant's written waiver, and
(ii) for claims submitted to arbitration under Article 24(1)(b), by the claimant's and the enterprise's written waivers
Notwithstanding paragraph 2(b), the claimant (for claims brought under Article 24(1)(a)) and the claimant or the enterprise (for claims brought under Article 24(1)(b)) may initiate or continue an action that seeks interim injunctive relief and does not involve the payment of monetary damages before a judicial or administrative tribunal of the respondent, provided that the action is brought for the sole purpose of preserving the claimant's or the enterprise's rights and interests during the pendency of the arbitration.
Subject to Article 20(3), if a tribunal has not been constituted within 75 days from the date that a claim is submitted to arbitration under this Section, the Secretary-General, on the request of a disputing party, shall appoint, in his or her discretion, the arbitrator or arbitrators not yet appointed.
Without prejudice to a tribunal's authority to address other objections as a preliminary question, a tribunal shall address and decide as a preliminary question any objection by the respondent that, as a matter of law, a claim submitted is not a claim for which an award in favor of the claimant may be made under Article 34.
(c) In deciding an objection under this paragraph, the tribunal shall assume to be true claimant's factual allegations in support of any claim in the notice of arbitration (or any amendment thereof) and, in disputes brought under the UNCITRAL Arbitration Rules, the statement of claim referred to in Article 18 of the UNCITRAL Arbitration Rules. The tribunal may also consider any relevant facts not in dispute.
In the event that the respondent so requests within 45 days after the tribunal is constituted, the tribunal shall decide on an expedited basis an objection under paragraph 4 and any objection that the dispute is not within the tribunal's competence. The tribunal shall suspend any proceedings on the merits and issue a decision or award on the objection(s), stating the grounds therefor, no later than 150 days after the date of the request. However, if a disputing party requests a hearing, the tribunal may take an additional 30 days to issue the decision or award. Regardless of whether a hearing is requested, a tribunal may, on a showing of extraordinary cause, delay issuing its decision or award by an additional brief period, which may not exceed 30 days.
When it decides a respondent's objection under paragraph 4 or 5, the tribunal may, if warranted, award to the prevailing disputing party reasonable costs and attorney's fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the tribunal shall consider whether either the claimant's claim or the respondent's objection was frivolous, and shall provide the disputing parties a reasonable opportunity to comment.
A tribunal may order an interim measure of protection to preserve the rights of a disputing party, or to ensure that the tribunal's jurisdiction is made fully effective, including an order to preserve evidence in the possession or control of a disputing party or to protect the tribunal's jurisdiction. A tribunal may not order attachment or enjoin the application of a measure alleged to constitute a breach referred to in Article 24. For purposes of this paragraph, an order includes a recommendation.
(b) Subparagraph (a) shall not apply in any arbitration conducted pursuant to this Section for which an appeal has been made available pursuant to paragraph 10 or Annex D.
If a separate, multilateral agreement enters into force between the Parties that establishes an appellate body for purposes of reviewing awards rendered by tribunals constituted pursuant to international trade or investment arrangements to hear investment disputes, the Parties shall strive to reach an agreement that would have such appellate body review awards rendered under Article 34 in arbitrations commenced after the multilateral agreement enters into force between the Parties.
(i) the law of the respondent, including its rules on the conflict of laws;21 and
If, within 60 days after the Secretary-General receives a request made under paragraph 2, the respondent fails or the claimants fail to appoint an arbitrator in accordance with paragraph 4, the Secretary-General, on the request of any disputing party sought to be covered by the order, shall appoint the arbitrator or arbitrators not yet appointed. If the respondent fails to appoint an arbitrator, the Secretary-General shall appoint a national of the disputing Party, and if the claimants fail to appoint an arbitrator, the Secretary-General shall appoint a national of the nondisputing Party.
A tribunal may also award costs and attorney's fees in accordance with this Treaty and the applicable arbitration rules.
Subject to paragraph 1, where a claim is submitted to arbitration under Article 24(1)(b):
(b) in the case of a final award under the ICSID Additional Facility Rules, the UNCITRAL Arbitration Rules, or the rules selected pursuant to Article 24(3)(d),
A disputing party may seek enforcement of an arbitration award under the ICSID Convention or the New York Convention regardless of whether proceedings have been taken under paragraph 8.
Article 35: Annexes and Footnotes
The Annexes and footnotes shall form an integral part of this Treaty.
Delivery of notice and other documents on a Party shall be made to the place named for that Party in Annex C.
Subject to paragraph 5, any dispute between the Parties concerning the interpretation or application of this Treaty, that is not resolved through consultations or other diplomatic channels, shall be submitted on the request of either Party to arbitration for a binding decision or award by a tribunal in accordance with applicable rules of international law. In the absence of an agreement by the Parties to the contrary, the UNCITRAL Arbitration Rules shall govern, except as modified by the Parties or this Treaty.
Unless the Parties otherwise agree, the tribunal shall comprise three arbitrators, one arbitrator appointed by each Party and the third, who shall be the presiding arbitrator, appointed by agreement of the Parties. If a tribunal has not been constituted within 75 days from the date that a claim is submitted to arbitration under this Section, the Secretary-General, on the request of either Party, shall appoint, in his or her discretion, the arbitrator or arbitrators not yet appointed.
Articles 28(3), 29, 30(1) and (3), and 31 shall apply inutatis mutundis to arbitrations under this Article.
IN WITNESS WHEREOF, the Parties have signed this Treaty.
DONE in two originals at Kigali this 19th day of February, 2008, in the English language.
THE REPUBLIC OF RWANDA:
The Parties confirm their shared understanding that "customary international law" generally and as specifically referenced in Article 5 and Annex B results from a general and consistent practice of States that they follow from a sense of legal obligation. With regard to Article 5, the customary international law minimum standard of treatment of aliens refers to all customary international law principles that protect the economic rights and interests of aliens.
Article 6(1) addresses two situations. The first is direct expropriation, where an investment is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure.
The second situation addressed by Article 6(1) is indirect expropriation, where an action or series of actions by a Party has an effect equivalent to direct expropriation without formal transfer of title or outright seizure.
Notices and other documents shall be served on Rwanda by delivery to:
Kimihurura, Avenue du Lac Muhazi
P.0 Box 6239 Kigali – Rwanda
The Schedule of a Party to this Annex sets out, pursuant to Article 14 (Non-Conforming Measures), the Party's existing measures that are not subject to some or all of the obligations imposed by:
In accordance with Article 14.1(a), and subject to Article 14.1(c), the articles of this Treaty specified in the Obligations Concerned element of an entry do not apply to the nonconforming aspects of the law, regulation, or other measure identified in the Measures element of that entry.
Schedule of Rwanda
Obligations Concerned National Treatment (Article 3)
Level of Government Central
Measures Law No. 26/2005 of 17/12/2005 relating to investment and export promotion and facilitation, Articles 2(5) and 2(11)
Description For purposes of investment registration under Law No. 26/2005 of 17/12/2005, a "local investor" as defined in Article 2(11) (which may include certain investors of Rwanda and COMESA Member States) is required to invest a minimum capital of USD 100,000, whereas a "foreign investor" as defined in Article 2(5) is required to invest a minimum capital of USD 250,000.
Measures Law No. 20/2000 of 26/07/2000 relating to non-profit organizations
Description Non-profit-making organizations registered outside Rwanda are subject to differential registration and approval requirements and procedures pursuant to Articles 32-36, Law No. 20/2000. Non-profit-making organizations registered outside Rwanda are also granted permits that shall not exceed a renewable five-year term (Article 37, Law No. 20/2000), while non-profit-making organizations registered in Rwanda are constituted for an indefinite duration (Article 6, Law No. 20/2000).
Measures Atomic Energy Act of 1954, 42 U.S.C. §§ 2011 et seg.
Description A license issued by the United States Nuclear Regulatory Commission is required for any person in the United States to transfer or receive in interstate commerce, manufacture, produce, transfer, use, import, or export any nuclear "utilization or production facilities" for commercial or industrial purposes. Such a license may not be issued to any entity known or believed to be owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government (42 U.S.C. § 2133(d)). A license issued by the United States Nuclear Regulatory Commission is also required for nuclear "utilization and production facilities," for use in medical therapy, or for research and development activities. The issuance of such a license to any entity known or believed to be owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government is also prohibited (42 U.S.C. § 2134(d)).
Measures Mineral Lands Leasing Act of 1920, 30 U.S.C. Chapter 3A
Description Under the Mineral Lands Leasing Act of 1920, aliens and foreign corporations may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from oil and gas, across on-shore federal lands or acquire leases or interests in certain minerals on on-shore federal lands, such as coal or oil. Non-U.S. citizens may own a 100 percent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore federal lands, or that acquires a lease to develop mineral resources on on-shore federal lands, unless the foreign investor's home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own citizens or corporations or to the citizens or corporations of other countries (30 U.S.C. §§ 181, 185(a)).
Measures 22 U.S.C. §§ 2194 and 2198(c)
Description The Overseas Private Investment Corporation (OPIC) insurance and loan guarantees are not available to certain aliens, foreign enterprises, or foreign-controlled domestic enterprises.
Measures 49 U.S.C. Subtitle VII, Aviation Programs
Description Only air carriers that are "citizens of the United States" may operate aircraft in domestic air service (cabotage) and may provide international scheduled and non-scheduled air service as U.S. air carriers.
Under 49 U.S.C. § 40102(a)(15), a citizen of the United States means an individual who is a U.S. citizen; a partnership in which each member is a U.S. citizen; or a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, which is under the actual control of U.S. citizens, and in which at least seventy-five percent of the voting interest in the corporation is owned or controlled by U.S. citizens.
Measures 49 U.S.C., Subtitle VII, Aviation Programs
Description "Foreign civil aircraft" require authority from the Department of Transportation to conduct specialty air services in the territory of the United States. In determining whether to grant a particular application, the Department will consider, among other factors, the extent to which the country of the applicant's nationality accords U.S. civil aircraft operators effective reciprocity.
Sector: Transportation Services — Customs Brokers
Measures 19 U.S.C. § 1641(b)
Description A customs broker's license is required to conduct customs business on behalf of another person. Only U.S. citizens may obtain such a license. A corporation, association, or partnership established under the law of any state may receive a customs broker's license if at least one officer of the corporation or association, or one member of the partnership, holds a valid customs broker's license.
Measures Securities Act of 1933, 15 U.S.C. §§ 77c(b), 77f, 77g, 77h, 77j, and 77s(a)
Securities Exchange Act of 1934, 15 U.S.C. §§ 781, 78m, 78o(d), and 78w(a)
Description Foreign firms, except for certain Canadian issuers, may not use the small business registration forms under the Securities Act of 1933 to register public offerings of securities or the small business registration forms under the Securities Exchange Act of 1934 to register a class of securities or file annual reports.
Sector: Communications — Radiocommunications
Measures 47 U.S.C. § 310
Description The United States reserves the right to restrict ownership of radio licenses in accordance with the above statutory and regulatory provisions. Radiocommunications consists of all communications by radio, including broadcasting.
Level of Government Regional
Measures All existing non-conforming measures of all states of the United States, the District of Columbia, and Puerto Rico.
The Schedule of a Party to this Annex sets out, pursuant to Article 14 (Non-Conforming Measures), the specific sectors, subsectors, or activities for which the Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
In accordance with Article 14.2, the articles of this Treaty specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities identified in the Description element of that entry.
Obligations Concerned National Treatment (Article 4)
Description Rwanda reserves the right to adopt or maintain any measure that accords rights or preferences to socially or economically disadvantaged communities among the people of Rwanda.
Obligations Concerned Most-Favored-Nation Treatment (Article 4)
Description Rwanda reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Treaty.
Rwanda reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Treaty involving:
Description The United States reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries due to application of reciprocity measures or through international agreements involving sharing of the radio spectrum, guaranteeing market access, or national treatment with respect to the one-way satellite transmission of direct-tohome (DTH) and direct broadcasting satellite (DBS) television services and digital audio services.
Description The United States reserves the right to adopt or maintain any measure that accords equivalent treatment to persons of any country that limits ownership by persons of the United States in an enterprise engaged in the operation of a cable television system in that country.
Description The United States reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care.
Description The United States reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities, including corporations organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act.
Existing Measures Alaska Native Claims Settlement Act, 43 U.S.C. §§ 1601 et seq.
Description The United States reserves the right to adopt or maintain any measure relating to the provision of maritime transportation services and the operation of U.S.-flagged vessels, including the following:
The following activities are not included in this reservation. However, the treatment in (b) is conditional upon obtaining comparable market access in these sectors from Rwanda:
Existing Measures Merchant Marine Act of 1920, §§ 19 and 27, now codified at 46 U.S.C. §§ 12101, 12120, 12132, 42101-42109, 55102, 55105-55108, 55110, 55115-55117, and 55119
Shipping Act of 1916, 46 U.S.C. §§ 50501, 56101, and 57109 Merchant Marine Act of 1936, 46 U.S.C. App. §§ 1151 et seq. 1171 et seq., and 46 U.S.C. §§ 50111, 53301-53312, 53701-53717, 53721-53725, 53731-53735, 55304, 55305, 57101, 57104, and 57301-57308
Merchant Ship Sales Act of 1946, 50 U.S.C. App. § 1738 46 U.S.C. §§ 55109, 55111, 55118, 60301, 60302, 60304-60306, 60312, and 80104
Passenger Vessel Act, 46 U.S.C. § 55103
Shipping Act of 1984, 46 U.S.C. §§ 40701-40706, 41107-41109
The Foreign Shipping Practices Act of 1988, 46 U.S.C. §§ 42301 et seq.
Merchant Marine Act, 1920, 46 U.S.C. §§ 50101 et seq.
Shipping Act of 1984, 46 U.S.C. §§ 40101 et seq.
Nicholson Act, 46 U.S.C. § 55114
North Pacific Anadramous Stocks Convention Act of 1972, Pub. L. 102-587; Oceans Act of 1992, Title VII
Description The United States reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Treaty.
(a) The Schedule of a Party to this Annex sets out, pursuant to Article 14 (Non-Conforming Measures), the Party's existing measures that are not subject to some or all of the obligations imposed by:
In accordance with Article 14.1(a), and subject to Article 14.1(c), the articles of this Treaty specified in the Obligations Concerned element of an entry do not apply to the nonconforming aspects of a law, regulation, or other measure identified in the Measures element of that entry.
Measures Law No. 18/1982 of 25/05/1982 pertaining to conditions of operating insurance companies, Article 2
Description Insurance companies operating in Rwanda must have at least 30% shares owned by nationals of Rwanda.
Phase Out This Annex III entry shall cease to have effect on the earlier of:(i) the date that Rwanda enacts an insurance law that eliminates the non-conforming aspects of the measure as set forth above;1 or (ii) September 1, 2009.
Commitments in these subsectors under the Treaty are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.
(a) National treatment with respect to banking will be provided based upon the foreign bank's "home state" in the United States, as that term is defined under the International Banking Act, where that Act is applicable. A domestic bank subsidiary of a foreign firm will have its own "home state," and national treatment will be provided based upon the subsidiary's home state, as determined under applicable law.1
(b) National treatment with respect to insurance financial institutions will be provided according to a non-U.S. insurance financial institution's state of domicile, where applicable, in the United States. State of domicile is defined by individual states, and is generally the state in which an insurer either is incorporated, is organized, or maintains its principal office in the United States.
Subsector Banking and Other Financial Services (Excluding Insurance)
Obligations Concerned Senior Management and Boards of Directors (Article 9)
Measures 12 U.S.C. § 72
Description All directors of a national bank must be U.S. citizens, except that the Comptroller of the Currency may waive the citizenship requirement for not more than a minority of the total number of directors.
Measures 12 U.S.C. § 619
Description Foreign ownership of Edge corporations is limited to foreign banks and U.S. subsidiaries of foreign banks, while domestic non-bank firms may own such corporations.
Measures 12 U.S.C. § 1463 et seq. and 12 U.S.C. § 1751 et seq.
Description Federal and state laws do not permit a credit union, savings bank, or savings association (both of the latter two entities may be also called thrift institutions) in the United States to be established through branches of corporations organized under a foreign country's law.
Measures 12 U.S.C. § 3104(d)
Description In order to accept or maintain domestic retail deposits of less than $100,000, a foreign bank must establish an insured banking subsidiary. This requirement does not apply to a foreign bank branch that was engaged in insured deposittaking activities on December 19, 1991.
Measures 15 U.S.C. §§ 80b-2 and 80b-3
Description Foreign banks are required to register as investment advisers under the Investment Advisers Act of 1940 to engage in securities advisory and investment management services in the United States, while domestic banks2 (or a separately identifiable department or division of the bank) do not have to register unless they advise registered investment companies. The registration requirement involves record maintenance, inspections, submission of reports, and payment of a fee.
Measures 12 U.S.C. §§ 221, 302, and 321
Description Foreign banks cannot be members of the Federal Reserve System, and thus may not vote for directors of a Federal Reserve Bank. Foreign-owned bank subsidiaries are not subject to this measure.
Measures 12 U.S.C. § 3102(a)(1); 12 U.S.C. § 3103(a); 12 U.S.C. § 3102(d)
Description Establishment of a federal branch or agency by a foreign bank is not available in the following states that may prohibit establishment of a branch or agency by a foreign bank:
Measures 15 U. S. C. § 77j j j(a)( 1)
Description The authority to act as a sole trustee of an indenture for a bond offering in the United States is subject to a reciprocity test.
Measures 22 U.S.C. §§ 5341-5342
Description Designation as a primary dealer in U.S. government debt securities is conditioned on reciprocity.
Measures 15 U.S.C. § 78o(c)
Description A broker-dealer registered under U.S. law that has its principal place of business in Canada may maintain its required reserves in a bank in Canada subject to the supervision of Canada.
Measures 12 U.S.C. § 1421 et seq. (Federal Home Loan Banks); 12 U.S.C. § 1451 et seq. (Federal Home Loan Mortgage Corporation); 12 U.S.C. § 1717 et seq. (Federal National Mortgage Association); 12 U.S.C. § 2011 et seq. (Farm Credit Banks); 12 U.S.C. § 2279aa-1 et seq. (Federal Agricultural Mortgage Corporation); 20 U.S.C. § 1087-2 et seq. (Student Loan Marketing Association)
Description The United States may grant advantages, including but not limited to the following, to one or more of the Government-Sponsored Enterprises (GSEs) listed above:
Capital, reserves, and income of the GSE are exempt from certain taxation.
Subsector Insurance
Measures 31 U.S.C. § 9304
Description Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts.
Measures 46 C.F.R. § 249.9
Description When more than 50 percent of the value of a maritime vessel whose hull was built under federally guaranteed mortgage funds is insured by a non-U.S. insurer, the insured must demonstrate that the risk was substantially first offered in the U.S. market.
1 For greater certainty, where an enterprise does not have the characteristics of an investment, that enterprise is not an investment regardless of the form it may take.
12 For greater certainty, the enforcement of a commitment or undertaking to use a particular technology, a production process, or other proprietary knowledge is not, by itself, inconsistent with Article 8(1)(f).
13 For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party in its territory, from imposing or enforcing a requirement or enforcing a commitment or undertaking to train workers in its territory, provided that such training does not require the transfer of a particular technology, a production process, or other proprietary knowledge to a person in its territory.
14 The Parties recognize that a patent does not necessarily confer market power.
15 For the United States, "laws" for purposes of this Article means an act of the United States Congress or regulations promulgated pursuant to an act of the United States Congress that is enforceable by action of the central level of government.
16 For the United States, "statutes or regulations" for purposes of this Article means an act of the United States Congress or regulations promulgated pursuant to an act of the United States Congress that is enforceable by action of the central level of government.
17 It is understood that the term "prudential reasons" includes the maintenance of the safety, soundness, integrity, or financial responsibility of individual financial institutions, as well as the maintenance of the safety and financial and operational integrity of payment and clearing systems.
18 For greater certainty, measures of general application taken in pursuit of monetary and related credit policies or exchange rate policies do not include measures that expressly nullify or amend contractual provisions that specify the currency of denomination or the rate of exchange of currencies.
19 For purposes of this Article, "competent financial authorities" means, for the United States, the Department of the Treasury for banking and other financial services, and the Office of the United States Trade Representative, in coordination with the Department of Commerce and other agencies, for insurance; and for Rwanda, the National Bank of Rwanda for banking and other financial services, and the National Insurance Commission for insurance.
20 For the purposes of this Article, the "competent tax authorities" means:
(b) for Rwanda, the Rwanda Revenue Authority.
21 The "law of the respondent" means the law that a domestic court or tribunal of proper jurisdictionwould apply in the same case.
Annex III - Schedule of Rwanda
1 As of the signing of this Treaty, a draft insurance law is being developed that Rwanda expects will repeal the current 1982 insurance law and remove the 70% equity cap for foreigners.
2 For greater certainty, "domestic banks" include U.S. bank subsidiaries of foreign banks.