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c. Argentina does not qualify for sovereign immunity under the FSIA. The
Argentine government was acting as a private actor engaged in commerce,
rather than a State.
d. Finding jurisdiction does not violate the Due Process Clause. The Court ruled
that Argentina fulfills the minimum contacts test established in
International Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) case. The
issuing of negotiable debts in US dollars, payable in New York and by
appointing a financial agent in New York qualifies as enough activities within
the US to suffice as minimum contacts.
Principles
a. The key international law principles in this case are sovereign immunity
(more specifically, restrictive immunity) under the Foreign Sovereign
Immunities Act.
b. The US Courts affirmed that Argentina was indeed engaging in a commercial
activity that directly affected the US, citing the third clause of section 1605 in
the Foreign Sovereign Immunities Act.
c. This being confirmed, Argentina no longer was acting as a State and
sovereign immunity is restricted under the Foreign Sovereign Immunities
Act allowing US courts to hear the case.
Conclusion
Under the FSIA, Argentina does not receive sovereign immunityit is restricted due
to its demonstrated participation in a commercial activity. This act establishes that
all states should be immune independent of defined areas of exception. Commercial
activity is one of those exceptions allowing for suit to be brought under US courts.
This case helps to clarify the definition of commercial activity. It is the nature of
this activity that countsnot the purpose. The nature of Argentinas action was
commercial (issuing bonds). The purpose of achieving profit and other sovereign
objectives are not the focus of the FSIA. The case fundamentally demonstrates the
nature of restrictive sovereign immunity when a foreign state engages in a
commercial activity.
Bibliography
Republic of Argentina v. Weltover, Inc., 504 U.S. 607 (1992).
International Shoe Co. v. Washington, 326 U.S. 310, 316 (1945).
Submitted
Khara Boender, October 8, 2009