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 ?
(31.) Denise Manning-Cabrol, The Imminent Death of the Calvo Clause and the Rebirth of the Calvo Principle: Equality of Foreign and National Investors, 26 l.
Shea, The Calvo Clause: A Problem of Inter-American and international law and diplomacy 19-20 (1955); see also Meg N.
Garcia Mora, Manuel, "The Calvo Clause in Latin American Constitutions and International Law", Marquette Law Review, vol.
Shea, Donald, The Calvo Clause: A Problem Of Inter-American and International Law and Diplomacy, Minneapolis, University of Minnesota Press, 1955.
(32) Manuel Garcia Mora, "The Calvo Clause in Latin American Constitutions and International Law", Marquette Law Review, vol.
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.
The obvious issue with the Calvo clause was the level of fairness
a Calvo Clause set forth in the contract, which would force the
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." Constitucion Politica de los Estados Unidos Mexicanos, art.
Do regional economic arrangements such as the NAFTA spell the end for Calvo clauses? 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...."(35) Specifically, the investment provisions in Chapter 11 of the NAFTA -- the commitment in Article 1110 for prompt payment of fair market value on expropriation of foreign-owned property(36) and the referral of investment disputes to international arbitration(37) -- challenge the vitality of the Calvo Doctrine.
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.