Assembly committee backs new investment protection treaty with Argentina
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The agreement signed on 25 September replaces a 1996 treaty; it now needs a plenary vote in El Salvador and ratification procedures in Argentina before it enters into force.
A committee of El Salvador's Legislative Assembly issued a favourable opinion on 6 November on a new agreement with Argentina on the reciprocal promotion and protection of investments, Infobae reported. The text now goes to the plenary for ratification.
The agreement was signed on 25 September 2026 in New York, on the sidelines of the 81st session of the UN General Assembly. It replaces a bilateral investment treaty from 1996 and aims to give investors from both countries clearer rules, legal certainty and protection against arbitrary treatment, according to the committee's opinion as reported by Infobae.
Like other modern investment treaties, the agreement sets out standards of treatment for investors, rules on compensation in the event of expropriation, the free transfer of funds related to an investment, and mechanisms for settling disputes between investors and states.
The treaty will enter into force only after ratification in El Salvador and the completion of Argentina's own constitutional procedures. No figures for expected Argentine investment have been published.