Bush Sends US-Rwanda Treaty To Senate
(RTTNews) - President George Bush sent a treaty signed between the US and the Republic of Rwanda to the Senate Thursday.
[ http://www.whitehouse.gov/news/releases/2008/11/20081120-1.html ]
According to the president, the treaty was the first bilateral investment treaty signed between the US and a sub-Saharan African country since 1998. It would help to promote cross-border investment by providing legal protections for investors of each country for their investments in the other country.
Bush also said that the treaty underscores the shared commitment of both countries to open investment and trade policies.
Under the treaty, Bush noted, both the US and Rwanda agreed to accord national treatment and most-favored-nation treatment to investments. They also agreed to customary international law standards for expropriation and for the minimum standard of treatment.
The treaty included detailed provisions regarding the payment of prompt, adequate, and effective compensation in the event of expropriation; free transfer of funds related to investment; freedom of investment from specified performance requirements; prohibitions on nationality based restrictions for the hiring of senior managers; and the opportunity for investors to resolve disputes with a host government through international arbitration.
Finally, both the US and Rwanda recognized that it would be inappropriate to encourage investment by weakening or reducing the protections afforded in domestic environmental and labor laws.
The president said that Rwanda had opened its economy, improved its business climate, and embraced trade and investment as a means to boost economic development and help alleviate poverty. He said this treaty would reinforce those efforts.
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