Problems relating to Trade and Investment on Peru
21. Restrictions on land ownership |
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Issue |
Issue details |
Requests |
Reference |
| (1) Compulsion of Land Expropriation | - In 2010, Firm's Subsidiary (FS) in manufacturing business received request from Road Development Agency of Lima City that FS vacate a portion of its land property for free to enable DALC to convert a portion of the arterial road into raised road. The Decree which forms the basis of this request is not made public as yet, the legal basis of the request is incomplete. Should Firm's Subsidiary accept all request of the Municipal Government, it must change its factory layout, that severely affects its manufacturing activities. While refusing to yield to the municipal request, they were compelled to discuss with the municipal authority if a limited transfer of the property would work for both parties. The neighbour commercial facilities already agreed to transfer for free a portion of their property currently used for general commercial facilities without prospect of receiving the rightful compensation for its transfer. Japanese Embassy in Peru suggested a solution under the Investment Agreement. However, Firm's Subsidiary did not choose a diplomatic approach for solution of the matter, in light of maintaining a good relationship with the municipal authority. | - It is requested that GOP protects the legally owned private property. | |
| (Action) - In December 2009, Agreement Between Japan and the Republic of Peru for the Promotion, Protection and Liberalisation of Investment (Japan-Peru Investment Agreement) entered into force. "Article 8 Reservations and Exceptions" of the Agreement seeks to exclude local governments in respect of prohibitions in national treatment, most-favored-nation treatment, demand for performance of special measures, and nationality requirement for key managerial positions. |
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| (2) Nebulous Registration of Land Owners | - The Registered Landowner's Approval is required for Exploration and Development. However, in the local area, there are cases where the Landowner is not necessarily registered clearly, or residents' communal strife continues over metes and bounds, delaying by large margin the start of exploration. | - It is requested that GOP compels Land Ownership Registration in a full and complete manner to identify the landowner beyond question. | |
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