INVESTMENT PROTECTION &...

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INVESTMENT PROTECTION & ISDS

Meg Kinnear ICSID Secretary-General

Stockholm

May 12, 2014

PROFILE OF ICSID CASELOAD

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1 2 1 2 1 2 4 1

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8 8 8 9 14

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30

21 24

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32

20 23 25

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40 38

1 1 1

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1 6

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1 2

1

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8 2

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0

10

20

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1972

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2013

ICSID Convention Arbitration Cases ICSID Convention Conciliation Cases

ICSID Additional Facility Arbitration Cases ICSID Additional Facility Conciliation Cases

INCREASE IN BITs

3 Source: UNCTAD, World Investment Report 2013

INCREASE IN FOREIGN INVESTMENT FDI inflows, global and by group economies (Billions USD)

4 Source: UNCTAD, World Investment Report 2013

RESPONDENTS - GENERAL

5 © 2014 by International Centre for Settlement of Investment Disputes. Content may be reproduced for educational use with acknowledgement.

South America 27%

European Union 12%

Central America & the Carribean

6% North America (Canada,

Mexico & U.S.) 5%

Eastern Europe (non-EU) & Central Asia

(non-EU) 14%

Western Europe (non-EU)

1%

Sub-Saharan Africa 16%

Middle East & North Africa 11%

South & East Asia & the Pacific

8%

INVESTORS – EU CASES

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Juridical person 73%

Natural and juridical person

11%

Natural person 16%

Disputes Decided by Arbitral Tribunals under the ICSID Convention and Additional Facility Rules - Overall

© 2014 by International Centre for Settlement of Investment Disputes. Content may be reproduced for educational use with acknowledgement.

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Award deciding that the claims are manifestly without legal merit

1%*

Award declining jurisdiction

25%

Award dismissing all claims 28%

Award upholding claims in part or in full

46%

OUTCOMES – EU RESPONDENTS (as of March 1, 2014)

8 © 2014 by International Centre for Settlement of Investment Disputes. Content may be reproduced for educational use with acknowledgement.

Award declining jurisdiction

19%

Award dismissing all claims 50%

Award upholding claims in part or in full

31%

CONDUCT OF AN ICSID CONVENTION

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FEATURES OF ICSID

• Delocalized facility • Dedicated to ISDS – expertise of Secretariat • Low cost – non-profit; use of WBG facilities

internationally • Transparency • Awards recognized by all 150 members • Awards enforceable as final judgment in every

Member State

10 © 2014 by International Centre for Settlement of Investment Disputes. Content may be reproduced for educational use with acknowledgement.

COST • $25,000 registration fee (paid by Claimant) • $32,000/year for Secretariat (divided between

parties • Tribunal remuneration of $3,000/day, billed

hourly • Advances held in interest-bearing WB trust fund • Tribunal discretion regarding costs

11 © 2014 by International Centre for Settlement of Investment Disputes. Content may be reproduced for educational use with acknowledgement.

ICSID 1818 H Street NW

Washington, DC 20433 Tel: (202) 458-1534 Fax: (202) 522-2615

www.worldbank.org/icsid

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12 MAY 2014

ISDS IN STOCKHOLM

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International Treaties

SUBSTANCE [example] Investor Investment Investment Protection • Fair and Equitable

Treatment • Expropriation • Discrimination • Legitimate Expectations

SUBSTANCE [examples] Investor Investment Investment Protection • Fair and Equitable

Treatment • Expropriation • Discrimination • Legitimate Expectations

PROCEDURE [ISDS] Examples: • ICSID • UNCITRAL Arbitration

Rules • SCC • Ad hoc arbitration • [other options]

ISDS in Sweden • 120 BIT • ECT • 61 SCC • 60 Sweden

• + 12 UNCITRAL

[UNCTAD Report 2013]

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Arbitration Institute of the Stockholm Chamber of Commerce (SCC)

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