To link to this article, copy this persistent link:
http://www.loc.gov/lawweb/servlet/lloc_news?disp3_l205401611_text

(Oct 08, 2009) Ecuador has withdrawn from the International Center for the Settlement of Disputes (ICSID), the international arbitration agency of the World Bank, terminating its membership of 23 years. Executive Decree 1823 of July 2, 2009, was signed by President Rafael Correa to end the commitment of Ecuador to recognize the jurisdiction of the ICSID to resolve international investment-related claims involving Ecuador.

The government maintained that the membership in the ICSID violated the Ecuadoran Constitution, which provides that the government may not enter into international instruments or treaties in which the Ecuadoran state yields its sovereign jurisdiction for international arbitration purposes, in contractual or commercial controversies between the state and natural or legal entities. (Art. 422, Constitution of 2008, POLITICAL DATABASE OF THE AMERICAS, http://pdba.georgetown.edu/Constitutions/Ecuador/ecuador08.html#mozTocId
674027
(last visited Oct. 5, 2009).)

Ecuador currently has ongoing claims for about US$13 billion, an amount exceeding its total foreign debt, mostly from foreign oil companies claiming breach of contract issues. Decree 1823 does not affect these ongoing claims before the international arbitration body, but prevents future ones. (Ecuador oficializó el retiro del Ciadi ayer, DIARIO EL COMERCIO, July 7, 2009, available at http://ww1.elcomercio.com/solo_texto_search.asp?id_noticia=185948&an
io=2009&mes=7&dia=3
.)

Author: Graciela Rodriguez-Ferrand More by this author
Topic: Alternative dispute resolution More on this topic
Jurisdiction: Ecuador More about this jurisdiction

Search Legal News
Find legal news by topic, country, keyword, date, or author.

Global Legal Monitor RSS
Get the Global Legal Monitor delivered to your inbox. Sign up for RSS service.

The Global Legal Monitor is an online publication from the Law Library of Congress covering legal news and developments worldwide. It is updated frequently and draws on information from the Global Legal Information Network, official national legal publications, and reliable press sources. You can find previous news by searching the GLM.

Last updated: 10/08/2009