Ecuador’s return, after eleven years, to the Convention on Settlement of Investment Disputes between States and Nationals of Other States (ICSID) already generates reactions in Ecuador’s business associations, after Ecuador’s ambassador to the United States, Ivonne Baki, signed the agreement.
The ICSID Convention, which began in 1966, provides the institutional and legal framework for the settlement of international investment disputes. It is the world’s leading and most experienced institution in arbitration and settlement of investor-state disputes, having handled more than 70% of all international investment dispute cases.
One of the unions to speak out was the National Chamber of Aquaculture (CNA), an entity that celebrated that Ecuador has resumed the agreement after eleven years.
The union agreed with the government’s vision by pointing out that the return to icsid will favor the form of trade agreements with countries such as Qatar, Canada, South Korea, and Mexico, the latter to promote Ecuador’s entry into the Pacific Alliance.
“The signing of this agreement is a step in the right direction for the country’s incursion into international trade and the attraction of investments,” said José Antonio Camposano, executive president of the CNA.
For its part, the Ecuadorian Federation of Exporters (Fedexpor) said that by signing the Agreement with ICSID, Ecuador ratifies the commitment to recover international confidence to enhance the investment climate and the opening of markets, which translates into greater employment opportunities.
“The country’s non-oil sector highlights the important decision as icsid members as a technical, independent and balanced mechanism in dispute resolution.”
The union added that the country’s sustainable development model must continue along the path of the necessary opening of markets to increase exports.
The Export and Investment Promotion Corporation (Corpei) also joined the reactions for Ecuador’s inclusion in the ICSID.
“Excellent news that will allow us to attract greater flows of foreign investment. In addition, it facilitates our interest in concluding trade agreements with Mexico, the United States, Korea and joining the Pacific Alliance,” the institution said.
They added that a dollarized economy requires sufficient sources of foreign exchange earnings for necessary liquidity and can expand production, employment, and state revenues.
“It is time to continue with the additional steps to make the benefits of this entry into icsid feasible,” argued Corpei, which recalled that Ecuador had renounced or withdrawn from the ICSID agreement in July 2009, a date since which foreign investment has been very elusive and afraid to enter the country, demanding guarantees and assurances.
Meanwhile, the Ecuadorian Banana Cluster, an organization that brings together the main associations of banana producers and exporters in the country, also spoke in favor.
“As a Banana Cluster, we welcome the signing of the Agreement with the International Centre for Settlement of Investment Disputes (ICSID). A first and great step in confirming Ecuador’s will to promote trade, foreign investment and respect legal security, which leads to better opportunities for the development of our country, “said the association, which indicated that this will allow the country to guarantee legal security for foreign investments through , among other tools and mechanisms, the resolution of disputes through impartial, efficient and fair international arbitration bodies; and through these scopes it will be possible to achieve new trade agreements.
“In order to promote the competitiveness of our export products, it is essential that Ecuador’s trade agenda seeks a greater national presence in the world, which will be possible, only, with the signing of new trade agreements in areas of greater power and growth, such as for our sector, the Asian continent,” emphasized the representatives of the Banana Cluster of Ecuador.