Calvo Doctrine

Summary of Calvo Doctrine

So named for the Argentine jurist Carlos Calvo, holds that a nation is obliged to extend to foreign business in its domain only non- discriminatory treatment; by entering a country, a foreign firm implicitly accepts local jurisdiction and will be treated as a national. This doctrine is particularly evident in Latin America, where Calvo provisions have been enacted into law. Various bilateral agreements on foreign investments have diluted somewhat the significance of the Calvo provisions.

(Main Author: William J. Miller)

Calvo Doctrine in International Trade

Meaning of Calvo Doctrine, according to the Dictionary of International Trade (Global Negotiator): A legal principle that jurisdiction in international investment disputes lies with the country in which the investment is located; thus, a foreign investor has no recourse beyond the host country's local courts.