Ecuador closes the door to arbitration with twelve countries

The Legislature is preparing today to denounce 12 bilateral investment protection treaties (BITs). The ruling party assures that these treaties are against the Constitution. The political opposition fears negative consequences in the pursuit to attract new capital.

“It is not convenient for Ecuador’s interest since the country needs foreign investment,” said Jose Ayala Lasso, former Foreign Minister, in a dialogue with Daily Expreso.

The plenary of the Legislature will attempt to “annul” the clause that allows the international arbitration in those treaties as a mechanism to solve possible controversies. In the list, there are commercial partners like the United States, Europe or China.