Environmental concerns now play an increasing role in investment disputes. In this regard, this post analyses the interpretation of an environmental carve-out in an investment treaty in the decision on jurisdiction and liability in Eco Oro Minerals Corp. (“Eco Oro”) v. Colombia.   Background and Award This dispute arose from Colombia’s measures adopted in connection…

The recent Award in AFC v. Colombia dated 24 February 2022 provides new developments on the scope of Rule 41(5) of the Arbitration Rules of the International Centre for the Settlement of Investment Disputes (the “ICSID Rules”). The Tribunal dismissed the claims of AFC Investment Solutions S.L. (the “Claimant”) after accepting a defense raised by…

In 2021, Latin American countries continued to struggle with the adverse effects of the COVID-19 pandemic.  Accordingly, legislative and jurisprudential developments on arbitration-related issues were also affected given that the governments were focused on reactivating local economies, vaccinating their citizens, and launching tax and labor reforms.  In addition, presidential elections also marked political shifts for…

In 2021, we witnessed a number of interesting developments in the field of investment arbitration in Latin America. From Mexico’s actions potentially triggering numerous treaty claims, to Colombia’s four consecutive victories, to Ecuador’s return to the International Centre for Settlement of Investment Disputes (ICSID) Convention. Our authors did a tremendous job covering and sharing their…

On May 7, 2021 the arbitral tribunal in the arbitration between América Móvil S.A.B de C.V and the Republic of Colombia (the “Tribunal”) under the Colombia-Mexico Free Trade Agreement (the “FTA”) (ICSID Case No. ARB(AF)/16/5) issued the award. América Móvil initiated the arbitration on its own name and in representation of its subsidiary in Colombia,…

Earlier this year, Colombia prevailed in two arbitrations under the Colombia-US Trade Promotion Agreement (“TPA”). The claims were filed by Alberto Carrizosa Gelzis, Felipe Carrizosa Gelzis and Enrique Carrizosa Gelzis (“Carrizosa brothers”) under the UNCITRAL Arbitration Rules, and by Astrida Benita Carrizosa (“Ms. Carrizosa”) under the ICSID Convention. In both arbitrations Ms. Carrizosa and the…

First appearing in the 1970s, denial of benefits (DoB) clauses have proliferated, became more sophisticated, and evolved significantly and even beyond recognition as in the 2017 Colombian Model BIT. This post discusses such evolution and provides a taxonomy of the different versions of the clause.   Denial of Benefits Clauses in Outline Traditionally, DoB clauses…

The issue of dual nationals’ access to investor-state dispute settlement (“ISDS”) has once again taken the center stage through the recently issued Carrizosa v. Colombia award. Resolved under the auspices of the 2013 UNCITRAL Arbitration Rules, the PCA tribunal unanimously dismissed the entire case for lack of jurisdiction ratione personae, in accordance with the provisions…

On 12 March 2021, a tribunal issued an award in the case of Naturgy v. Colombia (ICSID Case No. UNCT/18/1) under the Colombia-Spain BIT (2005) (the “BIT”). The decision is the first in a wave of four decisions decided in the first half of 2021 in favor of Colombia. Naturgy is noteworthy for its engagement…

On November 26, 2020, the #YoungITATalks session took place with the participation of representatives from government offices of different countries: Mairée Uran Bidegain (Chile), María Paula Arenas Quijano (Colombia), Cindy Rayo Zapata (Mexico) and Ricardo Ampuero Llerena (Peru). All panelists are or, at some point, were responsible for organizing and preparing the defense of States…

Corruption, annulment of arbitral awards and court intervention mark the main developments for 2020 in Latin America.  Our contributors this year reported on the most important judicial decisions and legislative measures impacting the legal framework of various jurisdictions in the region. A new ‘hot topic’ arising from the COVID-19 pandemic is the interplay between arbitration…

In 2020, we witnessed a number of interesting developments in the field of investment arbitration in Latin America. From the entry into force of the United States – Mexico – Canada Agreement (USMCA) signed over a year ago, as well as numerous cases and actions still arising from the Odebrecht scandal that became public back…

On February 27, 2020, the Third Division of the Colombian Council of State (“Court”) issued a judgment resolving an annulment petition submitted by a state-owned company’s subsidiary against an international arbitral award. In its judgment, the Court decided to annul the award due to the Tribunal’s failure to comply with the agreed arbitral procedure. In…

Introduction In 2019, we witnessed a number of interesting developments in the field of investment arbitration in Latin America. While some of them were in line with expectations, some jurisdictions did deviate from their usual or expected approach to ISDS and surprised us in positive, but also in negative ways. Our authors did a tremendous…

2019 was a lively year for international arbitration in Latin America – especially in the international commercial arbitration arena, which is the focus of this post. Contributors to Kluwer Arbitration Blog reported mostly on favorable developments on arbitration-related legislation, case law and other initiatives. The year, however, ended with a regrettable situation in Peru, where…

In its recent decision T-354/2019, the Colombian Constitutional Court, through one of its chambers, declared that arbitration awards, issued in international arbitrations seated in Colombia, may be subject to constitutional challenges by means of the so-called acción de tutela.1)The acción de tutela is similar to the so-called recurso de amparo, a constitutional injunction widely known…

On August 6, 2019, the Fifth Revision Chamber of Colombia’s Constitutional Court (the “Court”) issued judgment T-354/19 resolving a constitutional injunction (tutela)1)The tutela is a constitutional injunction that aims to protect fundamental constitutional rights when they are violated or threatened by the action or omission of any public authority. This mechanism is incorporated in Article…

In June 2019, the Constitutional Court of Colombia (the “Court”) issued a communication summarizing its decision on the Free Trade Agreement between the Republic of Colombia and the State of Israel (the “FTA”) signed on September 30, 2013.  The Court adjudged that the FTA is compliant with the Colombian Constitution but warned that if the…

In June 2019, Colombia’s Constitutional Court (the “Court”) issued a communication informing its decision on the constitutionality of the BIT between Colombia and France (the “BIT”) signed on July 10, 2014. In an unprecedented decision, the Court adjudged that the BIT is compliant with the Colombian Constitution (the “Constitution”) but conditioned its ratification to the…

During the last years, Colombia has been taking steps forward towards the consolidation of the country as an attractive forum for international arbitration.1)For a more detailed analysis, see: F. González Arrieta; “Arbitration in Colombia: Two Steps Forward and one Backwards” TDM 5 (2016), www.transnational-dispute-management.com; available at: www.transnational-dispute-management.com/article.asp?key=2382 Within this context, the Supreme Court of Justice…

On July 12, 2017, the Colombian Supreme Court issued a decision on the enforcement of the arbitral award rendered in the ICC case (No. 16088/JFR/CA) Tampico Beverages Inc. v. Productos Naturales de la Sabana S.A. Alquería, seated in Santiago de Chile. The decision provides for an interesting differentiation of the standard of review to be…

2015 has witnessed numerous interesting legal developments in the field of international arbitration in Latin America, although these have been wide-ranging in nature and have not always followed the same path. While some jurisdictions have taken legislative steps to introduce or consolidate pro-arbitration legislation in accordance with internationally accepted standards, others, perhaps influenced by negative…

Perhaps on a daily basis, in at least one city somewhere in the Western Hemisphere, an international-arbitration practitioner is asked to describe the benefits of arbitration over litigation in Latin America. The common refrain: “Predictability.” As conventional wisdom goes, this almost automatic response is borne out of the notion that litigating in many Latin American…

and Felipe González Arrieta The UNCITRAL Rules on Transparency in Treaty-based Investor-State Arbitration (hereinafter “the Rules”) came into force in April 1, 2014. The Rules were adopted at the forty-sixth session of the United Nations Commission on International Trade Law, held on July 2013, and are the result of a 3-year period effort by the…