ITN

ITN  |  enero 14, 2013

Awards and Decisions

US$1.76 billion dollar award levied against Ecuador in dispute with Occidental; tribunal split over damages   Occidental Petroleum Corporation and Occidental Exploration and Production Company v. The Republic of Ecuador, ICSID Case No. ARB/06/11 Damon Vis-Dunbar The Republic of Ecuador has been ordered to pay US$1,769,625,000 billion in damages—the largest award to be handed down […]

ITN  |  enero 14, 2013

News in Brief

Canada receives investor complaints over provincial energy and environment policies In recent months the government of Canada has received two complaints related to energy and environmental policies adopted by its provinces. Both investors have served Ottawa with notices of intent to submit a claim to arbitration under NAFTA’s investment chapter. A Delaware-based energy firm is […]

ITN  |  enero 14, 2013

Resources and Events

Resources Foreign Direct Investment and Human Development: The Law and Economics of International Investment Agreements Edited by Olivier De Schutter, Johan Swinnen, Jan Wouters. Routledge, November 2012 This book presents original research that examines the growth of international investment agreements as a means to attract foreign direct investment and considers how this affects the ability […]

The IMF’s New Transfers Policy and the Trading System

In late 2012, the International Monetary Fund (IMF) officially endorsed an “institutional view” on the management of capital flows. This short note provides an overview of the new IMF view, pinpoints how it may conflict with country obligations under trade and investment treaties, and discusses remedies for reform.

UNCTAD’s Investment Policy Framework for Sustainable Development: Potential and Issues

The United Nations Conference on Trade and Development (UNCTAD) has released its Investment Policy Framework for Sustainable Development (IPFSD). This article engages in an independent assessment of the IPFSD.

The Sixth Annual Forum of Developing Country Investment Negotiators: Understanding and Harnessing the New Models for Investment and Sustainable Development

The Sixth Annual Forum of Developing Country Investment Negotiators was held on October 29-31, 2012, in Port of Spain, Trinidad and Tobago. The forum encourages participants to develop their own critical perspectives on issues which are germane to the negotiation of international investment treaties.

Integrating Sustainable Development into International Investment Agreements: A Commonwealth Guide for Developing Country Negotiators

In November 2012 the Commonwealth Secretariat completed a practical guide, titled “Integrating Sustainable Development into International Investment Agreements: A Guide for Developing Countries,” to help enable developing countries to design international investment agreements that support their development needs.

Peru’s State Coordination and Response System for International Investment Disputes

Just as Peru has joined the global trend of concluding investment protection agreements, the country has also been no stranger to the considerable increase in international investment disputes observed in recent years. To address this growth in international investment arbitration in line with its investment attraction policy, Peru has created a system for efficiently and effectively resolving potential disputes.

ITN  |  noviembre 27, 2012

SADC Model BIT

SADC Model BIT

ITN  |  octubre 30, 2012

Resources and Events

Resources International Arbitration Case Law This website is a private, not-for-profit academic endeavour, in partnership with the School of International Arbitration, Centre for Commercial Law Studies, Queen Mary University of London. Its objective is to summarize, edit, and coordinate the publication of decisions rendered by arbitral tribunals, international tribunals and national courts in matters of […]

ITN  |  octubre 30, 2012

Awards and Decisions

Majority declines jurisdiction in claim against Argentina over domestic litigation requirement Daimler Financial Services AG v. Argentine Republic, ICSID Case No. ARB/05/1 Damon Vis-Dunbar A claim against Argentina by a subsidiary of the German automotive firm Daimler A.G. has failed on its merits because the claimant did not first bring the dispute to court in […]

ITN  |  octubre 30, 2012

News in Brief

South Africa begins withdrawing from EU-member BITs South Africa has terminated its bilateral investment treaty with Belgium and Luxembourg, and intends to phase out other treaties with European countries. In a September 7th letter to Belgium’s Ambassador in Pretoria, South Africa’s Minister of International Relations denunciated the treaty, in accordance with the treaty’s termination clauses […]

Towards a New Generation of Investment Policies: UNCTAD’s Investment Policy Framework for Sustainable Development

On 12 June 2012, the United Nations Conference on Trade and Development launched its Investment Policy Framework for Sustainable Development. IPFSD comes at a time when the international investment regime is in a state of «transition» and when an increasing number of governments are reviewing their investment-related regulatory frameworks, both at the national and international levels.

Dealing With the Increasing Complexity of Investment-Related Treaties: A Framework and Some Policy Guidelines

Bilateral investment treaties used to be boilerplate: taken out of a drawer before official visits; signed with pomp and circumstance but not much attention to precise wording. Today, the diversity and ramifications of investment-related treaties are staggering.

ITN Quarterly October 2012

PDF – English (914 KB) – Français (1 MB) – Español (1 MB) Investment Treaties and Investor Corruption: An Emerging Defense for Host States?; Dealing With the Increasing Complexity of Investment-Related Treaties: A Framework and Some Policy Guidelines; Towards a New Generation of Investment Policies: UNCTAD’s Investment Policy Framework for Sustainable Development; The SADC MODEL […]

Inching Towards Consensus: An Update on the UNCITRAL Transparency Negotiations

From October 1-5, 2012, a working group of the United Nations Commission on International Trade Law met in Vienna to continue work on how to ensure transparency in treaty-based investor-state arbitration. It was the working group’s fifth week-long meeting on the topic, but will not be the last.

ITN  |  octubre 19, 2012

Investment Treaties and Investor Corruption: An Emerging Defense for Host States?

Bilateral investment treaties are famously asymmetric. They grant investors rights but not obligations, while imposing upon states obligations unaccompanied by rights. Recent cases suggest, however, that BIT tribunals are poised to recognize a defense to state liability that, in effect, imposes upon investors the obligation to avoid involvement in public corruption in the course of making a treaty-protected investment. Despite these suggestive jurisprudential trends, however, the specific contours of the emerging corruption defense are uncertain.

Analysis of the European Commission’s Draft Text on Investor-State Dispute Settlement for EU Agreements

With the European Union’s Lisbon Treaty, in force since December 2009, foreign direct investment fell under the exclusive competence of the European Union (EU). Since then the three European institutions—the European Commission, the European Council of Ministers and the European Parliament—have been engaged in a vigorous debate over a new legal framework and negotiating positions […]

The Source for Determining Standards of Review in International Investment Law

After several cases assessing whether state regulation in the public interest gives rise to a claim under an investment treaty, commentators have begun asking questions about the applicable standard of review that should be applied in evaluating those claims. Now that there is emerging clarity around the interpretation of the most common substantive investment treaty […]

ITN  |  julio 19, 2012

Resources and Events

UNCTAD’s Investment Policy Framework for Sustainable Development (IPFSD) UNCTAD, June 2012 The United Nations Conference on Trade and Development (UNCTAD) has established a set of principles for investment policymaking, guidelines for national investment policies, and guidance (in the form of options) for the design and negotiation of IIAs—titled the “Investment Policy Framework for Sustainable Development” […]

ITN  |  julio 19, 2012

Awards and Decisions

Claim against Slovakia dismissed, as tribunal complains of poorly presented case  Jan Oostergetel and Theodora Laurentius v. The Slovak Republic Damon Vis-Dunbar A tribunal has dismissed a claim by a pair of Dutch investors against the Slovak Republic, finding no evidence that a “financial mafia” colluded with the Slovak government to bankrupt the claimants’ investment. […]

ITN  |  julio 19, 2012

News in Brief

Vattenfall launches new claim against Germany The Swedish state-run energy firm Vattenfall has launched a second claim against Germany. The claim stems from Germany’s May 2011 decision to phase-out its nuclear power plants, in which 8 plants have been shuttered and the remaining 9 plants to be closed over the next decade. While Germany has […]

ITN  |  julio 19, 2012

Trends in Investor Claims Over Feed-in Tariffs for Renewable Energy

As governments increasingly turn to renewable energy to mitigate climate change, domestic climate-related policies in the form of price support measures such as feed-in tariffs (FiTs) have played an important role in stimulating the much needed investment—public and private, domestic and foreign—in the sector. Feed-in tariffs are characterized by guaranteed electricity purchase prices (set higher […]

Investment Law and Public Services: Clashes of Interests or Peaceful Coexistence?

[T]he Tribunal must balance the legitimate and reasonable expectations of the Claimants with […] [the] right to regulate the provision of a vital public service.[1] This quote from an investment arbitration tribunal highlights the relationship between international investment law and the regulation of public services. This essay illustrates areas of contention between the requirements of […]

Deference or No Deference, That is the Question: Legitimacy and Standards of Review in Investor-State Arbitration

The appropriate standard of review to be applied in investor-state arbitration—as well as in other dispute settlement contexts, for that matter—remains a recurrent and much debated topic.[1] The reason is straightforward: In many cases, the outcome of arbitral proceedings hinges, inter alia, on the intensity with which a tribunal scrutinizes the conduct of the investment’s […]

ITN Quarterly July 2012

PDF – English (686 KB) – Français (694 KB) – Español (576 KB) In this issue: Deference or No Deference, That is the Question: Legitimacy and Standards of Review in Investor-State Arbitration; The Source for Determining Standards of Review in International Investment Law; Consent to Arbitration Through National Investment Legislation; Investment Law and Public Services: […]

ITN  |  abril 13, 2012

Resources and Events

Resources Fair and Equitable Treatment: UNCTAD Series on Issues in International Investment Agreements II UNCTAD, March 2012 This paper explores how the concept of Fair and Equitable Treatment (FET) has been defined in international investment agreements (IIAs) and how different formulations have been interpreted by arbitral tribunals. The substantive content of the FET standard has […]

ITN  |  abril 13, 2012

News in Brief

Australia to reject investor-state dispute resolution in TPPA The Australian government will not sign on to investor-state dispute resolution provisions in the Trans-Pacific Partnership Agreement (TPPA), according to an Australian government official. “We have made it clear that we will no longer be seeking investor-state dispute settlement provisions in trade agreements,” said the Australian Minister […]

ITN  |  abril 13, 2012

Awards and Decisions

US court vacates award against Argentina BG Group Plc v. Argentina Lise Johnson A US appellate court has vacated an award against Argentina in a decision that may give investors pause before attempting to bypass treaty provisions requiring that they first pursue their claims in the host state’s courts. The long course of the dispute […]

ITN  |  abril 13, 2012

Case Note: How Chevron v. Ecuador is Pushing the Boundaries of Arbitral Authority

The arbitral tribunal in Chevron v. Ecuador[1] has taken a series of steps in recent months suggesting that it has a broad view of its authority. But while it may have been unwilling to tie its own hands, other national courts and international tribunals who are currently being asked to review the legitimacy and enforceability […]

ITN  |  abril 13, 2012

Negotiations on UNCITRAL Transparency Provisions Reach Critical Juncture

Negotiations over transparency in investor-state arbitrations have reached a critical juncture heading into an October 2012 meeting in Vienna. During the last meeting in February 2012, a large number of countries, developed and developing, strongly supported options to ensure transparency in investor-state disputes that are settled under the arbitration rules of the United Nations Commission […]

Pro-Investor or Pro-State Bias in Investment-Treaty Arbitration? Forthcoming Study Gives Cause for Concern

Debates about investment treaties often raise questions about fairness and independence in international investment arbitration. Some observers argue that investment arbitration offers a neutral and impartial forum in which to resolve investor-state disputes as a basis for protecting foreign-owned assets and ensuring the rule of law.[1] Others claim that the arbitration mechanism favours investors and […]

Venezuela’s Withdrawal From ICSID: What it Does and Does Not Achieve

In January 2012, the Bolivarian Republic of Venezuela denounced the ICSID Convention,[1] becoming the third country – after Bolivia and Ecuador – to do so. The exit from the global forum for the settlement of investment disputes signals these countries’ apparent loss of faith in the system and raises questions about the Convention’s fitness for […]

The White Industries Arbitration: Implications for India’s Investment Treaty Program

In November 2011, an arbitral tribunal found the Republic of India guilty of violating the India-Australia bilateral investment treaty (BIT). It is the first known investment-treaty ruling against India, despite the fact that the country has a mammoth portfolio of BITs with more than 70 countries. News of the award broke only in February 2012.[i] […]

Defining an ICSID Investment: Why Economic Development Should be the Core Element

A dispute will only fall within the jurisdiction of the International Centre for Settlement of Investment Disputes (ICSID) if it directly arises out of an ‘investment’, as is provided by Article 25(1) of the Convention for the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). However, not only does the ICSID Convention fail to provide any definition of what constitutes an ‘investment’, the drafters of the ICSID Convention, in fact, made an express decision not to include such a definition. This absence has given rise to interesting issues of interpretation as ICSID tribunals have sought to arrive at an understanding of how the term ‘investment’ should be properly understood for the purposes of the ICSID Convention.

ITN Quarterly December 2011/January 2012

PDF – English (521 KB) – Français (433 KB) – Español (477 KB) Flip-Page – English – Français – Español In this issue: Mission Creep: International Investment Agreements and Sovereign Debt Restructuring; UNASUR Arbitration Centre: The Present Situation and the Principal Characteristics of Ecuador’s Proposal;Investment Developments in the Trans-Pacific Partnership Agreement; The Netherlands: A Gateway to […]

Mission Creep: International Investment Agreements and Sovereign Debt Restructuring

As members of the Eurozone are now acutely aware, the lack of a sovereign debt restructuring regime is one of the most glaring gaps in the international financial architecture. That said, this summer’s decision by a tribunal of the International Centre for Settlement of Investment Disputes (ICSID), which grants a bilateral investment treaty (BIT) jurisdiction […]

Investment Developments in the Trans-Pacific Partnership Agreement

Advocates for the Trans-Pacific Partnership Agreement (TPPA) describe it as a “new generation agreement for the 21st century” that will go further behind the border than any previous free trade agreement (FTA). This signals significant changes in the investment regime found in the current generation of FTAs and bilateral investment treaties (BITs). Precisely what those […]

UNASUR Arbitration Centre: The Present Situation and the Principal Characteristics of Ecuador’s Proposal

Five years ago, some Latin American countries started a critical movement against the International Centre for Settlement of Investment Disputes (ICSID), the World Bank institution for arbitrating disputes between foreign investors and host states. They perceived that ICSID arbitration proceedings had become problematic due to a lack of transparency and a failure to address the […]

ITN  |  enero 12, 2012

Awards and Decisions

Arbitrator sharply critical of majority decision in Italian bondholder claim against Argentina Abaclat and Others (Case formerly known as Giovanna a Beccara and Others) v. Argentine Republic, ICSID Case No. ARB/07/5 Damon Vis-Dunbar Professor Georges Abi-Saab has delivered a sharply worded dissent against a decision that granted jurisdiction to an ICSID case involving tens of […]

ITN  |  enero 12, 2012

Resources and Events

Resources Investment Treaties and Why They Matter to Sustainable Development: Questions and Answers International Institute for Sustainable Development, December 2011 This handbook provides an accessible introduction to investment treaties and their relevance to sustainable development. The handbook provides a brief history of investment treaties, before delving into a discussion of the contents of these treaties […]

ITN  |  enero 12, 2012

News in Brief

Philip Morris files for arbitration over intellectual property dispute with Australia The tobacco company Philip Morris filed for arbitration on 21 November 2011, claiming the government of Australia’s regulations on cigarette branding breach the Hong Kong-Australia bilateral investment treaty. The announcement arrived on the same day that the Australian Parliament passed legislation that bans most […]

Stabilization in investment contracts: Rethinking the context, reformulating the result

Over the past two decades, stabilization provisions in investment contracts (and in the domestic law in some developing countries) became a popular demand of investors into developing countries. Rarely used and largely unconstitutional in most developed countries,[1] these provisions essentially limit the ability of governments to have new laws and regulations apply to a foreign […]

Principles for responsible contracts: Integrating the management of human rights risks into State-investor contract negotiations

The UN shines a spotlight on business and human rights In July 2005, the then United Nations Secretary-General Kofi Annan appointed John Ruggie as his Special Representative on Business and Human Rights. Ban Ki-Moon continued the appointment, and this June Ruggie delivered his final report to the Human Rights Council.  Ruggie’s mandate is highly significant […]

Going public to improve investment in agriculture

The public began to hunger for information about investment in the agriculture sector when a massive wave of foreign investment in farmland and water was triggered, in 2008, by a confluence of the biofuels boom, global food crisis, sharp spike in oil prices and the financial crisis. Alarming information started to emerge in the media. […]

Foreign investment contracts in the oil & gas sector: A survey of environmentally relevant clauses

The oil and gas industry faces increasingly strict environmental standards in developed countries. However, the majority of the world’s proven oil reserves are in developing countries and economies in transition, which often lack sophisticated regimes for environmental protection. Even when legislative frameworks are well developed, there are often deficiencies in capacity and an unwillingness to […]

ITN  |  octubre 7, 2011

News in Brief

More legal woes for Canada’s Feed-in Tariff program for renewable energy Canada could soon be faced with arbitration for alleged breach of its obligations under the North American Free Trade Agreement (NAFTA). On 6 July 2011, a Texas-based company, Mesa Power Group LLC, served Canada with a Notice of Intent to Submit a Claim to […]

ITN  |  octubre 7, 2011

Awards and Decisions

Mass claim in Argentine bond dispute is granted ICSID jurisdiction Abaclat and Others (Case formerly known as Giovanna A Beccara and Others) and The Argentine Republic, Decision on Jurisdiction and Admissibility, ICSID Case No. Arb/07/5 Damon Vis-Dunbar An ICSID tribunal has accepted jurisdiction to hear a claim by tens of thousands of Italians who claim […]

ITN  |  octubre 7, 2011

Resources and Events

Resources International Investment Arbitration and Public Policy website launched A website launched in late September, called International Investment Arbitration and Public Policy (IIAPP), offers a searchable database of materials in known arbitrations under investment treaties. Developed by a research team under the coordination of Professor Gus Van Harten of Osgoode Hall Law School, the website allows […]

ITN  |  julio 12, 2011

Federalism and international investment disputes

One of the more politically controversial aspects of international investment protection treaties is the liability of a State when political sub-divisions are found to have breached that State’s treaty obligations to foreign investors. This issue is particularly significant in federal States, such as Canada, the United States, Australia or Germany, among others, where sub-national governments […]