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)

| 22-Jul-2016
A raíz de la adopción de una legislación para proteger al fumador contra los efectos del tabaco en el 2008, la empresa multinacional Philip Morris entabló una demanda contra Uruguay ante el Centro Internacional de Arreglo de Disputas entre Inversionista Extranjero y Estado (CIADI, más conocido por sus siglas en inglés ICSID) en el 2010.
Tucumán a las 7 | 21-Jul-2016
En el Gobierno provincial anticipan que la Nación comenzará a descontar, en cuotas, los fondos abonados por el laudo del Ciadi.
Todd N. Tucker (blog) | 21-Jul-2016
All in all, a pretty good decision—although its limitations should be acknowledged.
The Next Turn | 19-Jul-2016
A private ISDS tribunal has just ruled in favor of Uruguay over its tobacco labeling legislation. But why do we even allow this game to take place in the first place, regardless of the chance of a fatal outcome.
Reuters | 19-Jul-2016
A World Bank panel rejected a lawsuit filed against Peru by New York-based Renco Group Inc on technical grounds.
El Comercio | 18-Jul-2016
Controversia se relaciona a operaciones y medidas de remediación ambiental en el complejo metalúrgico, precisó el MEF.
La Diaria | 15-Jul-2016
La victoria de Uruguay en el caso Philip Morris no significa que el arbitraje de inversiones no sea muy problemático.
Entorno Inteligente | 12-Jul-2016
Cuatro empresas españolas informaron el miércoles que solicitaron ante el Banco Mundial un arbitraje para que le sea pagada una indemnización por la expropiación de sus inversiones en Venezuela, nacionalizadas en el 2010 por orden del fallecido presidente Hugo Chávez, reseña Reuters.
Euronews | 11-Jul-2016
La justice internationale a donné raison au gouvernement uruguayen dans son bras-de-fer avec le groupe Philip Morris.
REDES - AT | 11-Jul-2016
REDES – Amigos de la Tierra Uruguay manifiesta su satisfacción ante el laudo positivo para el Estado y el pueblo uruguayo en el arbitraje internacional de la tabacalera estadounidense Philip Morris Internacional (PMI) contra Uruguay