Latin America

Latin American and Caribbean countries have signed almost 700 investment agreements. They have been targeted in almost 300 investor-state disputes.

Argentina has faced almost 62 ISDS cases, about 6% of all cases, making it the world’s most targeted state. Venezuela and Mexico have been among the ten most frequent respondents in the world, with 51 and 33 cases, respectively.

Many key cases such as Renco vs. Peru, Chevron vs. Ecuador or Pac Rim vs. El Salvador have originated in significant environmental damages caused by corporations. Philip Morris took an ISDS case against Uruguay over its anti-tobacco law.

Chile, Mexico and Peru are also party to the Trans-Pacific Partnership (TPP) with eight other Pacific Rim states. The TPP includes an investor-state dispute mechanism that undermines public-interest ‘safeguards’.

The most well-known cases ISDS cases in the region include:

Chevron (US) vs. Ecuador: For 26 years, Texaco, later acquired by Chevron, performed oil operations in Ecuador. Ecuadorian courts found that during that period the company dumped billions of gallons of toxic water and dug hundreds of open-air oil sludge pits in Ecuador’s Amazon, poisoning the communities of some 30,000 Amazon residents. After a legal battle spanning two decades, in November 2013, Ecuador’s highest court ordered the corporation to pay $9.5 billion to provide desperately needed clean-up and health care to afflicted indigenous communities. Chevron challenged the decisions produced by Ecuador’s domestic legal system before an ISDS tribunal. In 2018, the arbitration tribunal held that the $9.5 billion judgment was fraudulent, violated international public policy and should not be recognised or enforced by the courts of other States. The amount of the award has not been established yet. (Ecuador-United States BIT invoked)

Occidental Petroleum Corporation “Oxy” (US) vs. Ecuador: in 2012 Ecuador was ordered to pay US$1.77 billion to the investor, an oil exploration and production company, for breach of contract. Sentence was reduced to US$1 billion in November 2015 (Ecuador-United States BIT invoked).

Investors vs. Argentina: When Argentina froze its utility rates in response to its 2001-2002 financial crisis, it was hit by over 40 lawsuits from investors, including Suez & Vivendi (France), Sociedad General de Aguas de Barcelona S.A (Spain) and Anglian Water (UK). The ISDS tribunal concluded that Argentina had breached the investors’ right to fair and equitable treatment. By 2014, the country had been ordered to pay a total of US$980 million (various BITs invoked).

Photo: Sairen42 / CC BY-SA 3.0

(April 2020)

Ciar Global | 11-Feb-2020
Odebrecht ofrece la suspensión del procedimiento de arbitraje si se garantiza el reinicio del proyecto Gasoducto Sur Peruano por otro inversionista privado, sin costos para el Estado.
Ciar Global | 6-Feb-2020
La compañía portuguesa Mota Engil reclama un total de 25 millones de dólares al estado paraguayo por el fallido contrato del proyecto Metrobús.
Reuters | 6-Feb-2020
Brazil construction company Odebrecht SA has taken Peru to arbitration over a failed $2 billion investment in a gas pipeline.
El Comercio | 6-Feb-2020
Odebrecht presentó la demanda de arbitraje contra el Perú ante el CIADI, por la cancelación del contrato del Gasoducto Sur Peruano.
Nouvelles du Monde | 6-Feb-2020
Odebrecht a déposé une plainte de 1,2 milliard de dollars contre le Pérou devant le tribunal arbitral de la Banque mondiale, pour l’annulation du contrat de concession pour le gazoduc sud-péruvien en 2017.
Reuters | 4-Feb-2020
The ride-hailing firm said its initial calculations suggest damages from suspending its service in Colombia will exceed $250 million.
Ciar Global | 4-Feb-2020
En enero, Colombia recibió una notificación de intención de acudir a arbitraje de inversiones por parte de Uber y su filial colombiana por suspender el servicio en el país.
La Nacion | 4-Feb-2020
La Argentina y el Ciadi tienen un historial nutrido de conflictos, pagos y disputas pendientes. Hoy, el país es el más demandado del mundo.
El Tiempo | 31-Jan-2020
Eco Oro dice que al no poder hacer actividad allí, pese a tener título, se afectaron sus finanzas.
CIAR Global | 30-Jan-2020
El empresario español Raimundo Santamarta, uno de los propietarios de la farmacéutica SM Pharma, ha presentado una notificación de arbitraje contra la República Bolivariana de Venezuela bajo el Acuerdo para la Protección de Inversiones entre el Reino de España y Venezuela.