A common provision allowing foreign investors to sue host governments has become a ticking time bomb inside trade agreements. Some countries are now refusing to agree to the provision and are questioning its legal legitimacy. Jess Hill investigates.
That concern is a real and serious one, but there is also a more direct and crude problem: parties (or their lawyers) bribing, or making backdoor deals with, the arbitrators to secure a favorable outcome.
Crystallex — owed $1.4 billion for the expropriation of its Venezuela mining subsidiary — has moved U.S. Federal Court in Delaware to seize Petroleos de Venezuela Holding, the parent company of PDVSA’s American unit Citgo Holding.