Calvo Doctrine


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Calvo Doctrine

 

the principle of the inadmissibility of armed or diplomatic intervention by one state in another for the purpose of exacting payment of debts. It was proclaimed for the first time by the Argentinian legal expert and diplomat C. Calvo (1824-1906) in 1868, when European powers were intervening in Latin American countries under the pretext of exacting from the governments of these countries payments on the debts owed to citizens of the European powers. The principle was incorporated in several treaties concluded by Latin American countries among themselves and with European powers (such as the Italian-Paraguayan Treaty of 1893 and the French-Mexican-Nicaraguan Treaty of 1894). Early in the 20th century the doc-trine was developed and to some extent altered by Drago, theArgentinian minister of foreign affairs.

References in periodicals archive ?
commenting on the Calvo doctrine and its implementation in settling
This is particularly controversial in Latin America because it violates the Calvo Doctrine, as discussed above.
The Calvo Doctrine also represents an assertion of sovereignty.
Cremades, Disputes Arising Out of Foreign Direct Investment in Latin America: A New Look at the Calvo Doctrine and Other Jurisdictional Issues, 59 DISP.
23) First, like the principle of national treatment incorporated into the GATT(24) and the NAFTA,(25) the Calvo Doctrine espouses equality of treatment between foreign citizens and citizens of the host country.
Second, the Calvo Doctrine requires foreign investors to submit to the national laws of the host country, and prohibits the intervention of the foreign citizen's home law or the intervention, diplomatic or otherwise, of the foreign state in protecting the foreigner's interests.
As an increasing number of Latin American governments have adopted the "Washington consensus" prescribing free trade and openness to foreign investment,(30) the Calvo Doctrine has been weakened as a guiding principle.
As the American republics vie for foreign investment, the Calvo Doctrine is expected to weaken.
Despite such admonitions, the roots of the Calvo Doctrine are planted very deeply in Latin America, and they can be expected to complicate the development of law in the region.
The Calvo Doctrine was first espoused in 1868, and later refined in 1896.
Today, although the Calvo Doctrine may be in decline, the problems that gave rise to it are still evident.
This is not to say, however, that the reason for the original invention of the Calvo Doctrine -- the abuse of economic power by foreign governments or foreign corporation -- is not still with us.