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)

Amico Hoops | 2-Jun-2021
The Ecuadorean country will have to face a millionaire sum for Perenco oil company after a ruling by a panel formed under the auspices of the World Bank’s International Center for Settlement of Investment Disputes.
La Jornada | 26-May-2021
No tardó en llegar. Finley Resources Inc. MWS Management y Prize Permanent Holdings interpusieron el pasado 12 de mayo una demanda contra México por 100 millones de dólares ante el Centro Internacional de Arreglos de Diferencias relativas a Inversiones (Ciadi) del Banco Mundial
El Desconcierto | 20-May-2021
La aseguradora Ohio National pidió al gobierno de Chile dar inicio a “un procedimiento de consultas amistosas y negociaciones para intentar resolver las grandes consecuencias”, presuntamente ocasionadas por la ley recientemente promulgada que permite el retiro de rentas vitalicias.
Chile Mejor sin TLC | 20-May-2021
Si Ohio National Seguros de Vida gana esta disputa, el Estado de Chile tendría que impedir el retiro del 10% de las rentas vitalicias, o pagar una indemnización de miles de millones de dólares a las empresas aseguradoras que operan en el país.
Reuters | 19-May-2021
Finley Resources alleges Mexico violated investor protections under the NAFTA trade pact by failing to honor agreements.
Radio Uchile | 17-May-2021
La plataforma se refirió a la decisión de la aseguradora Ohio National de iniciar un litigio con Chile luego de la reforma que permite solicitar un anticipo de las rentas vitalicias.
CIAR Global | 14-May-2021
Un grupo de inversores en hidrocarburos estadounidenses: Finley Resources Inc., MWS Management Inc., y Prize Permanent Holdings, LLC han presentado una solicitud de arbitraje de inversiones contra México ante el Centro Internacional de Arreglo de Diferencias relativas a Inversiones.
Diario Uchile | 14-May-2021
La decisión de Ohio National de someter al Estado chileno al mecanismo de solución de controversias dispuesto en el TLC con Estados Unidos, levantó las alarmas respecto de la pérdida de soberanía para nuestro país. Tres expertos analizaron los hechos y entregan sus impresiones al respecto.
Chile Mejor sin TLC | 14-May-2021
La activación del mecanismo de solución de controversias demuestra que los Tratados de Libre Comercio cercenan la soberanía del estado de Chile cuando asume decisiones como estas.
El Economista | 10-May-2021
El CIADI negó la razón a América Móvil en un pleito contra Colombia por una polémica reversión de espectro y radiobases que data de hace 25 años y que ya costó 521 millones de dólares a esa compañía.