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)

Acción Ecológica | 7-Feb-2025
El presidente – candidato Daniel Noboa anunció en tono triunfal este 3 de febrero que su gobierno “ha conseguido lo que ningún otro: Ecuador tendrá un acuerdo comercial con Canadá”, dando por hecho que la Corte Constitucional emitirá una resolución favorable de constitucionalidad y que la Asamblea Nacional sí lo aprobará. ¡Sin embargo, no se conoce todavía el texto del Tratado porque aún no ha sido firmado! Sigue en condición de “reserva”.
Infobae | 6-Feb-2025
Un incidente de violencia en la mina Higabra, en Antioquia, puso en jaque la seguridad en la región y genera repercusiones legales en el plano internacional por una aparente violación del Tratado de Libre Comercio con Canadá.
Criterio | 6-Feb-2025
Mediante millonaria demanda, inversionistas de las ZEDE buscarían desincentivar decisiones estatales que perjudiquen sus inversiones.
Radio Caracol | 4-Feb-2025
Ante el Centro Internacional de Arreglo de Diferencias relativas a Inversiones (CIADI) llegó una demanda presentada por la firma canadiense Continental Gold Inc, contra Colombia por supuestamente violar el Tratado de Libre Comercio (TLC) con Canadá.
CIAR Global | 3-Feb-2025
La ministra de Trabajo, Jeannette Jara, en una entrevista a la radio chilena, informó de una carta enviada por aseguradoras estadounidenses al presidente Gabriel Boric en la que muestran su disconformidad con la reforma de las pensiones, tan solo un día antes de que ésta fuera aprobada por el Congreso Nacional.
Prensa Latina | 30-Jan-2025
Uruguay is currently facing five international lawsuits, according to the future Pro-secretary of the Presidency, Jorge Lopez, of the Frente Amplio government that will take office on March 1.
CIAR Global | 29-Jan-2025
El Gobierno de Uruguay ha llegado a un acuerdo para el pago de un laudo de 30 millones USD más intereses a Latin American Regional Aviation Holdings (LARAH)
CIAR Global | 27-Jan-2025
La demandante reclama un monto de 130 millones USD en concepto de daños compensatorios, más los intereses y honorarios legales correspondientes.
Venezuelanalysis | 27-Jan-2025
The US oil giant has launched multiple efforts to collect international arbitration awards against the Caribbean nation.
Boursorama | 27-Jan-2025
Un tribunal d’arbitrage de la Banque mondiale a rejeté la demande du Venezuela d’annuler une sentence arbitrale de 8,37 milliards de dollars en faveur de ConocoPhillips.