ANNOUNCED AS TEMPORARYNo
President Obama signed Proclamation 8788 on March 26, 2012, suspending Argentina's status as a GSP beneficiary country under the duty-free program 'because it has not acted in good faith in enforcing arbitral awards in favor of United States citizens or a corporation, partnership, or association that is 50 percent or more beneficially owned by United States citizens.' This action, which became effective on May 29, 2012, follows an interagency review of two separate petitions submitted by U.S. companies. The petitions sought the removal of Argentina from GSP eligibility based on the Government of Argentina's failure, in contravention of the GSP statutory eligibility criteria, to act in good faith in recognizing as binding and enforcing arbitral awards in favor of U.S. companies rendered under the United States-Argentina bilateral investment treaty and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). The subject awards, totaling about $300 million plus interest, were rendered by ICSID arbitral tribunals in 2005 and 2006 and were subsequently upheld against challenge by Argentina in ICSID annulment proceedings. The Government of Argentina has not paid the awards, despite repeated requests to do so by the two petitioners and the United States Government.
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