Calvo Clause

Calvo Clause

A provision in an agreement between a private individual and a foreign state that says, in effect, that "aliens are not entitled to rights and privileges not accorded to nationals, and that, therefore, they may seek redress for grievances only before local authorities."

Under the Calvo Clause, a claimant waives the right to apply to his or her government or to another forum for protection if a claim is denied by local authorities.

References in periodicals archive ?
The obvious issue with the Calvo clause was the level of fairness
a Calvo Clause set forth in the contract, which would force the
appears to be increasing, forcing some Calvo Clause countries to agree
of the Calvo Clause and the Rebirth of the Calvo Principle: Equality of
Gonzalez also points out that the so-called Calvo Clause in Mexican diplomacy and laws precludes the possibility that foreign citizens in Mexico could appeal to their home countries for intervention.
435, 437 (1993) (noting that the Calvo clause was developed to limit the perceived threats of foreigners to a country's natural resources); see also Gloria L.
An example of a Calvo Clause can be found in the Mexican Constitution at article 27, paragraph 1: "El Estado podra conceder el mismo derecho a los extranjeros, siempre que convengan ante la Secretaria de Relaciones en considerarse como nacionales respecto de dichos bienes yen no invocar por lo mismo la proteccion de sus gobiernos por lo que se refiere a aquellos; bajo la pena, en cuanto de faltar al convenio, de perder en beneficio de la Nacion los bienes que hubieren adquirido en virtud del mismo.
167) Thomas L Hughes, Venezuela: Calvo Clause Revisited, LATIN AM.
81) Usually Calvo Clauses were required in the terms of contracts that involved foreign parties.
For instance, the Mexican Constitution still contains a Calvo clause requiring foreigners to submit to national law,(32) the Andean Common Market (ANCOM) still maintains vestiges of Calvo,(33) and Calvo clauses are still written into agreements in the region.
According to one commentator, international developments such as the NAFTA "raise many critical questions about the continued validity of the Calvo critical questions about the continued validity of the Calvo Clause.
To understand the lingering vitality of the Calvo Clause -- indeed, to understand Latin American notions of sovereignty -- one must view the Calvo Clause against a background of historical practice.