Ecuador risk $ 14,475,000 for arbitrations

The Ecuadorian State would be risking $ 14,475,000 in case of losing the 27 processes faced by commercial disputes before arbitral tribunals: The International Centre for Settlement of Investment Disputes (ICSID) and the United Nations Commission on International Trade Law (UNCITRAL).

The figures were presented yesterday at the seminar ‘Impact of BITs on public policy,’ organized by Radio Universal Pichincha and the Ministry of Planning and Development (Senplades for its Spanish acronym).

Only in the dispute with Occidental (Oxy), Ecuador would pay $ 2,500 million, said the Assistant Secretary for the Good Living Planning of the Senplades Andres Arauz.

According to the research conducted by Javier Echaide, member of the Audit Commission of Investment Treaties and the Arbitration System of Argentina (Caitisa), in Ecuador 16 claims are recognized under the rules of ICSID. In addition, the country faces eight threats of lawsuits.

In these cases, Ecuador would have invested around $ 118 million in defense, said the Argentine expert.