NAM Official speaks about arbitration tribunal ruling.
Press Release Summary:
April 9, 2010 - International arbitration panel ruled in favor of Chevron in claim of company against government of Ecuador under U.S.-Ecuador Bilateral Investment Treaty (BIT). Ruling emphasizes importance of U.S. BIT program as way to ensure U.S. investors are treated fairly in partner countries, according to Frank Vargo of NAM. Vargo also said foreign competitors have advantages like access to international arbitration, and program will level playing field in foreign markets for American companies.
Original Press Release
Manufacturers Statement on Arbitration Tribunal Ruling on Ecuadorian Violations
Press release date: April 1, 2010
WASHINGTON, D.C. - The National Association of Manufacturers (NAM) Vice President for International Economic Affairs Frank Vargo issued the following statement today regarding the decision by an international arbitration panel in the claim of Chevron against the government of Ecuador under the U.S.-Ecuador Bilateral Investment Treaty (BIT):
"The recent ruling in favor of Chevron emphasizes the importance of the U.S. BIT program as a tool to ensure U.S. investors are treated fairly in BIT partner countries, including Ecuador.
Currently, the Administration is conducting a thorough policy review of the U.S. BIT program, and this decision provides evidence of the importance of a strong BIT program to protect U.S. investors, workers and shareholders when U.S. companies invest abroad. We urge the Administration to quickly complete its review of the 'Model BIT' framework with additional emphasis on our BIT program.
Manufacturers in the United States are at a competitive disadvantage in many fast-growing foreign markets where foreign competitors enjoy strong protections, including access to international arbitration. Many U.S. companies stand to benefit in these foreign markets by negotiating strong treaties to protect international investments.
We are encouraged by this decision and we hope the Administration moves forward with bolstering the BIT program to help level the playing field in foreign markets for American companies."
The National Association of Manufacturers is the nation's largest industrial trade association, representing manufacturers in every industrial sector and in all 50 states. Manufacturing has a presence in every single congressional district providing good, high-paying jobs. For more information about the Manufacturers, visit www.nam.org.