VI
are being established and thereafter, subject to certain speci- fied exceptions. —Specified performance requirements may not be imposed upon or enforced against covered investments. —Expropriation is permitted only in accordance with cus- tomary international law standards. —Parties are obligated to permit the transfer, in a freely us- able currency, of all funds related to a covered investment, subject to exceptions for specified purposes. —Investment disputes with the host government may be brought by investors, or by their covered investments, to bind- ing international arbitration as an alternative to domestic courts. These elements are further described in the following article-by- article analysis of the provisions of the Treaty: Title and Preamble The Title and Preamble state the goals of the Treaty. Foremost is the encouragement and protection of investment. Other goals in- clude economic cooperation on investment issues; the stimulation of economic development; higher living standards; promotion of re- spect for internationally-recognized worker rights; and mainte- nance of health, safety, and environmental measures. While the Preamble does not impose binding obligations, its statement of goals may assist in interpreting the Treaty and in defining the scope of Party-to-Party consultations pursuant to Article VIII. Article I (Definitions Article I defines terms used throughout the Treaty. Company, Company of a Party The definition of ‘‘company’’ is broad, covering all types of legal entities constituted or organized under applicable law, and includes corporations, trusts, partnerships, sole proprietorships, branches, joint ventures, and associations. The definition explicitly cover not- for-profit entities, as well as entities that are owned or controlled by the state. ‘‘Company of a Party’’ is defined as a company con- stituted or organized under the laws of that Party. National The Treaty defines ‘‘national’’ as a natural person who is a na- tional of a Party under its own laws. Under U.S. law, the term ‘‘na- tional’’ is broader than the term ‘‘citizen.’’ For example, a native of American Samoa is a national of the United States, but not a cit- izen. Investment, Covered Investment The Treaty’s definition of investment if broad, recognizing that investment can take a wide variety of forms. Every kind of invest- ment is specifically incorporated in the definition; moreover, it is explicitly noted that investment may consist or take the form of any of a number of interests, claims, and rights. The Treaty provides an illustrative list of the forms an invest- ment may take. Establishing a subsidiary is a common way of mak-
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