| Publication Date: | jueves, marzo 12, 2009 |
| News Title: | Investment Promotion and Protection Treaty between Guatemala and Israel |
| News Details: | |
 http://www.eleconomista.net/noticia.php?id=5372 The Investment Promotion and Protection Treaty between Guatemala and Israel executed in Tel Aviv on November 7, 2006 (the “Treaty”) was published in Guatemala’s Official Gazette on March 2, 2009, effective as of March 11, 2009. The Treaty’s objectives are: (i) to foster, strengthen and enhance economic cooperation between the two nations; (ii) develop favorable conditions to increase the flow of investment between them; and (iii) mutual promotion and protection of investment by nationals or companies of the other party. The Treaty provides for the standard investment principles, rules and protections that are normally found in investment treaties or agreements (BITs), including specific regulation on: • Investment Promotion and Protection • National Treatment, Most Favorable Nation Treatment and Most Favorable Law Default Application ( • Fair and Equitable Treatment • Loss Compensation • Expropriation upon payment of just compensation • Free convertibility and transferability of currency • Dispute resolution through arbitration, either ad hoc, ICSID, UNCITRAL, and express consent to abide and comply with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) • Subrogation by severance/indemnification payee on claim rights • The Treaty is applicable to existing and future investments for a term of 10 years The Treaty does not imply the benefit or preferential treatment to an investor due to or resulting from any international tax agreement, customs union or free trade agreement (e.g. DR-CAFTA), bilateral or multilateral agreement, or any other investment promotion and protection treaty between Israel and another nation before July 1, 2003. The Treaty has been greatly welcome by Guatemalan companies or nationals doing business in Israel and for Israel’s national and companies investing in Guatemala. Among other sectors, Israeli companies have significant investment and presence in Guatemala’s agro-business industry, personal security companies and renewable energy projects. Additionally, Israel companies have shown interest in water, sewage and solid waste treatment plants and industrial parks. Among other similar treaties, Guatemala has recently executed BITs with Chile, Colombia, Cuba, Czech Republic, Ecuador, Finland, Germany, Spain, Sweden and Switzerland. Authors: Alejandro Cofiño Rodriguez, Partner and María Cristina Beltranena – Consortium Guatemala. --------------------------------------- The Treaty was ratified by Guatemala’s President on January 23, 2008 and previously approved by Guatemalan Congress on November 20, 2007. |
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