If Argentina withdraws from the ICSID Convention: Implications for foreign investors
04 February 2013Hogan Lovells
Faced with a significant number of investment treaty claims, Argentina looks set to withdraw from the International Centre for Settlement of Investment Disputes (ICSID) Convention. Argentina has signaled its intention to support instead a proposal by Ecuador to create an arbitral facility to decide investment disputes under the auspices of the Union of South American Nations, otherwise known as “UNASUR” for its Spanish acronym, a South American intergovernmental organization. Argentina's withdrawal from ICSID may have significant effects on an investor's ability to bring claims against Argentina. It is important that investors are aware of the potential consequences arising from these changes so that they can take steps to preserve their rights.