ICSID Growth Continues as Canada Ratifies and Cases Diversify

by White & Case LLP
Contact

The World Bank arbitration system for foreign investment disputes continues to grow. On 1 November 2013, Canada deposited its instrument of ratification of the ICSID Convention with the World Bank. Almost seven years after signing the ICSID Convention on 15 December 2006, Canada will formally become a member after a 30-day notice period ends on 1 December 2013. Canada is the 150th State to ratify the ICSID Convention, a development that reinforces the continued growth of ICSID membership, alongside continued growth of the number of investment protection treaties worldwide.

The ICSID Convention has achieved global prominence by providing a self-contained system for investor-state dispute settlement, including standard clauses, detailed procedural rules, and institutional support. The ICSID Convention’s most significant feature is that it provides a binding agreement that Contracting States will comply with an arbitral award rendered in a dispute as if it were a final judgment of a court in that State. ICSID awards are not open to appeal and are only subject to limited review by an ICSID annulment committee. Therefore, ICSID awards cannot be reviewed by, or appealed to, any country’s national courts.

Although Canada is already an attractive venue for foreign investment due to its vast natural resources, the availability of binding ICSID arbitration will increase foreign investor confidence in Canada by reducing investor risk. Critically, Canadians investing in foreign countries will now also enjoy reduced risks through access to ICSID arbitration further to consent in applicable treaties and contracts. ICSID membership is a significant complement to Canada's network of Foreign Investment Promotion and Protection Agreements, which stands at 24 agreements currently in force.

This important development underscores that suggestions of the deterioration of the ICSID system by some commentators have been misplaced. There has been much attention to Bolivia, Ecuador and Venezuela seeking to denounce the ICSID Convention in recent years (as well as terminating certain investment protection treaties), and very recently on South Africa’s termination of several bilateral investment treaties with European countries. Yet, the reality is that the number of Contracting States has continued to increase, as has the number of investment protection treaties on a global level. Since 2011, the ICSID Convention has entered into force with respect to seven additional States.

Furthermore, the ICSID case load reached an all-time high in 2012 with the registration of a record 58 new ICSID cases. The nature of cases before ICSID has also continued to expand, to diverse types of investments with varied types of participating parties. ICSID recently registered the first case filed by a Latin American state, an underutilized scenario in the ICSID system.1 ICSID tribunals are also hearing cases involving varied mass claims, such as the case brought by tens of thousands of holders of sovereign bonds against Argentina.2


1 - Republic of Peru v. Caravelí Cotaruse Transmisora de Energía S.A.C., ICSID Case No. ARB/13/24.
2 - Abaclat and Others v. Argentina Republic, ICSID Case No. ARB/07/5.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© White & Case LLP | Attorney Advertising

Written by:

White & Case LLP
Contact
more
less

White & Case LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.