US Ambassador to the United States Yvonne Baki signed the ICSID Agreement today, 11 years after leaving Ecuador | Economy | News
Being part of the International Center for Settlement of Investment Disputes again would give Ecuador a better image of respecting contracts and is a magnet for investors, say experts
Ecuadorean Ambassador to the United States, Yvonne Baki, today signed the Agreement on the Settlement of Investment Disputes between States and Citizens of Other Countries (ICSID). This agreement is a space for Investment Dispute Resolution at the international level. Consequently, Ecuador is seeking re-entry after eleven years since leaving the country in 2010.
after signture , Ecuador became the 164th signatory to the convention, but it has not yet been ratified by the National Assembly.
“Welcome to the company from Ecuador From the ICSID Convention. Meg Kinnear, Secretary General of the International Center for Settlement of Investment Disputes, said today’s signing confirms the country’s commitment to strengthening its investment climate.
for this part, David Malpass, President of the World Bank Group And Chairman of the Administrative Board of the International Center for Settlement of Investment Disputes on it “Efficient and fair resolution of complaints with foreign investors is critical to creating a competitive business environment.”
Ecuador originally signed the agreement s The instrument of ratification was deposited on January 15, 1986. According to art. 68, the agreement entered into force for Ecuador on February 14, 1986. On July 6, 2009, the World Bank Group (WBG) received written notification of withdrawal from the agreement From the Sovereign of Ecuador. According to Article 71 of the Investment Dispute Settlement Agreement, The complaint went into effect on January 7, 2010, Six months after receipt of the notification from Ecuador.
The Ecuador’s argument for resigning from the International Center for Settlement of Investment Disputes was based on a constitutional violation that states “not to enter into international treaties or instruments in which the state allocates sovereign jurisdiction to international arbitration of contractual disputes.”
By the date of the complaint, Ecuador had already received a series of lawsuits against oil companies. (Oxy, Burlington and Perenco) Those affected by the rule change in their contracts. The state had to pay millions of dollars after losing its cases.
according to Jaime Carría, Executive Secretary of the Fiscal Policy Monitor (OPF), the International Center for Settlement of Investment Disputes is one of the bodies of the World Bank, and arbitration of this type provides legal security for investments. Therefore, it is considered positive for the country to seek to rejoin the International Center for Settlement of Investment Disputes like this It gives an image of respect for contracts that attract investments.
For Carrera, it is important that the country Conditions are equal with other countries in the region and the world. (I)