Participation

The government of Argentina has taken over all the country’s banks. No compensation has been paid. Some U.S. citizens an businesses had accounts in the banks. Absent treaty provisions, can the takeover be set aside by a U.S. federal court because no compensation was paid? Or is Argentina immune?

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· ANTHONY HILL’s avatar

Re: Argentina dq – wk 6

posted by ANTHONY HILL

Dec 04, 2013, 7:10 PM

Mr. Charnell, if there is nothing in writing saying that the US has a treaty with Argentina giving the US certain rights then the fact that Argentina has taken over all the banks the US can not do anything about it. It is understood that the US can’t do anything because no treaty exists so that holds true for compensation. No one getting paid is sad but there is nothing the US can do about it. Argentina is immune. I am curious about US businesses doing business in Argentina. Armed with the knowledge that in order for businesses to succeed in today’s business environment businesses have to operate on a global scale would there be some other way for businesses to get paid that don’t involve Argentinean banks? I am thinking that US businesses can still do business in Argentina as long as there is payment agreed to in very “outside the box” ways.

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· TERISA BARANOSKI’s avatar

Re: Argentina dq – wk 6

posted by TERISA BARANOSKI

Dec 05, 2013, 9:27 PM

James,

I found in researching Argentina listed on the Department of State archives that the U.S. and Argentina agree to binding international arbitration for investment disputes. Argentina’s government is a party to th International Center for the Settlement of Investment Disputes through the United Nations Commission on Internationale Trade Law and the World Bank’s Multilateral Investment Guarantee Agency(Archive). Argentina also allows company’s to seek recourse through the Argentine courts but has a clause that companies can not file in both systems. So I don’t believe that the investors can file in the U.S. courts due to the Foreign Sovereignty Immunities Act , but investors could try the Argentina’s court but would probably be better off going through the binding arbitration system.