UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT / /
______
2006/IEG/SEM/019
APEC-UNCTAD Regional Seminar on Investor-State Dispute Settlement: Key Substantive and Procedural Issues – Final Report
Submitted by: UNCTAD, IEG, Mexico
APEC-UNCTAD Regional Seminar on Investor-State DisputeSettlement Mexico City, Mexico9-10 October 2006APEC-UNCTAD Regional Seminar on Investor-State Dispute Settlement: Key Substantive and Procedural Issues
Mexico City, 9-10 October 2006
FINAL REPORT
In the framework of the APEC IEG (Investment Expert Group) project, the UNCTAD secretariat organized jointly with the APEC secretariat and the Secretaría de Economía (Ministry of Economy) of Mexico, a regional seminar on investor-State dispute settlement in Mexico City from 9 to 10 October 2006. The seminar was designed for government officials from APEC member economies. In addition to the APEC delegations, representatives from the Secretaría de Economía also attended the seminar. A total of 41 persons, including resource persons, participated in the seminar (see attached list).
The seminar reviewed recent developments with respect to investor-State dispute settlement (ISDS) and the impact on investment treaties. It was based on the findings of two studies prepared by the UNCTAD secretariat, as well as on a database of investor-State dispute settlement cases:
-a study on "Investor-State Dispute Settlement and Impact on Investment Rulemaking: the Asia Pacific Perspective" (the ISDS study). The study reviewed recent trends in ISDS cases involving APEC member economies but also other countries, as well as their impact on recent trends in treaty-making. For example, the study discussed trends to clarify the meaning of key substantive issues, to define "investment" and "investor" more closely, promote transparency and judicial economy, improve investor-State dispute settlement provisions;
-a study on "Alternative Methods to Treaty-based, Investor-State Dispute Resolution" (the ADR study). The study answered a specific request made by several APEC member economies to include this topic in the seminar; and
-a database of treaty-based investor-State dispute settlement cases. Information on investor-State disputes is not easily accessible and requires expertise to search for relevant key substantive issues and the way different tribunals have interpreted such issues. It was felt important to provide easily accessible information on investor-State cases based on investment treaties (261 known cases, both pending and concluded) in an organized and searchable database.
The first session of the seminar was dedicated to presenting and discussing the findings of the studies and the database and seeking feedback from APEC member economies. The second session focused on the international dispute settlement mechanisms (ICSID and ICC). The presentation on ICSID reviewed recent improvements to ICSID rules. During the second day, key substantive issues in ISDS were analyzed with a focus on the impact of arbitration on recent treaty practice.
The participants found the seminar particularly interesting. The evaluation questionnaires showed that 83% of the participants rated the sessions and issues discussed as very useful.
Closing remarks by Roy Nixon, IEG Chairperson
"The two UNCTAD studies were:
-Comprehensive, high quality and would make a significant contribution to the store of knowledge on the substantive issues in APEC member economies,
-Directly related to APEC priorities and addressed a serious capacity-building need,
-Highly relevant to the ongoing work program of IEG and in particular increasing the understanding of the “core” elements of IIAs and recent evolutions in treaty practice.
A new ISDS award data base:
-Strong positive feedback on the development of a new database of ISDS arbitration outcomes,
-Excellent search capabilities with portal through UNCTAD and APEC websites,
-Helpful tool for public and private sector negotiators on new (renegotiating) IIAs
-Analytical tool focussing on outcomes.
This project makes an important strategic contribution to IEG work:
-Explaining impact of investment liberalisation – understanding barriers at the border and behind-the-border,
-Deepening understanding of “core” elements of APEC IIAs – relationship with best practice,
-Guiding policy choices especially of developing member economies.
IEG will consider outcomes carefully and seek to identify further capacity building needs:
-Member economies encouraged to think about possible projects,
-Australia likely to hold one day event in margins of SOM 3 meeting in Cairns (June 2007) aimed at practicalities of DS in APEC context,
-Continue our constructive dialogue with UNCTAD on these and other issues to see how we can work together on these issues."
Roy Nixon also mentioned that the IEG is planning to organize a follow-up seminar in Australia in 2007.
The outstanding support received by the APEC secretariat and the Mexican Government (Secretaría de Economía) contributed to the success of the event.
Annexes:
-Programme of the seminar
-List of participants
"APEC-UNCTAD Regional Seminar on InvestorState Dispute Settlement: Key Substantive and Procedural Issues"
APEC - UNCTAD & the Government of Mexico
9-10 October 2006
Background and objectives:
The Regional Seminar on Investor State Dispute Settlement: Key Substantive and Procedural Issues is designed for government officials from the APEC economies directly involved in negotiations on investment or managing of investor-State disputes to discuss the most recent developments in this area and deepen their knowledge of the issues at hand. This seminar will provide participants with an in-depth understanding of the experience, present practice, and possible future developments with respect to arbitration between foreign investors and host states and their impact on bilateral investment treaties and investment chapters of free-trade agreements concluded by and between APEC member economies.
The seminar will review recent developments with respect to investor-state dispute settlement in recent treaty practice. It will also review key substantive issues emerging from recent dispute settlement cases and their impact on the negotiation and the implementation of IIAs, paying particular attention to "best practice" in IIAs in the region. It will finally allow a better understanding of key procedural issues and the current discussions around a possible improvement of the investor-State dispute settlement system. A study has been prepared by the UNCTAD secretariat to serve as background paper for the seminar. At the request of APEC member economies, the seminar will also look into Alternative Methods of Treaty-Based, Investor-State Dispute Resolution and discuss the findings of a background study.
Host economy: Mexico
Venue: Crowne Plaza Hotel de Mexico
Address: Dakota # 95 Col. Napoles, 03810, Mexico, D.F.
Tel. number: (52-55) 11 64 11 64
Coordination:
Project overseer: Monica Miron Medellin, Deputy Director for Bilateral Treaties and APEC, Ministry of Economy
UNCTAD secretariat: Anna Joubin-Bret, Senior Legal Advisor, International Arrangements Section
Programme
Monday 9 October
8:30-9:00Registration
9:00-9:30Opening session
Opening statement by Alejandro Faya. Deputy Director-General for International Affairs, Directorate-General for Foreign Investment, Ministry of Economy, Mexico
Welcoming address by Gregorio Canales Ramirez. Director General for Foreign Investment, Ministry of Economy, Mexico.
Welcoming statement by Anna Joubin-Bret, Senior Legal Advisor, UNCTAD, Geneva
First session: Introduction and presentation of the background study
chaired by: Alejandro Faya Rodriguez, Deputy Director-General for International Affairs, Directorate-General of Foreign Investment, Ministry of Economy, Mexico
9:30-10:00Investor-State dispute settlement: overall trends
by Anna Joubin-Bret, Senior Legal Advisor, Division on Investment, Technology and Enterprise Development, UNCTAD
10:00-11:00Investor-State dispute settlement in the APEC region: the findings of the study
by Kenneth Vandevelde, Professor of Law, Former Dean, ThomasJeffersonSchool of Law, San Diego
11:00-11:15Coffee break
11:15-12:15Alternative Dispute Resolution
by Jeswald W. Salacuse, Henry J. Braker Professor of Law, The Fletcher School of Law and Diplomacy, Tufts University
12:15-13:00Open discussion between resource persons and participants on issues of concern in the APEC context
13:00-14:30Lunch
Second session:International dispute settlement mechanisms
14:30-15:30ICSID: Recent trends in procedural issues
by Margrete Stevens, Acting Lead Counsel, International Centre for Settlement of Investment Disputes, ICSID
15:30-15:45Coffee break
15:45-16:30Investment Arbitration through ICC Arbitration; and legality as a condition to jurisdiction
by Francisco González de Cossío, González de Cossío Abogados, S.C. México.
16:30-17:30Open discussion between resource persons and participants on issues of concern in the APEC context
19:00Reception hosted by the Government of Mexico
Tuesday 10 October 2006
Third session: Impact of ISDS arbitration on recent treaty practice
Chaired by: Roy Nixon, Chairperson, IEG
9:00-9:30Introductory remarks: the findings of the study
by Roberto Echandi, Small Economy Trade & Investment Center (SETIC), Professor of International Trade & Investment Law, Diplomatic Institute, San Jose
9:30-10:00Covered investments under BITs, FTAs and dispute settlement rules
by Bart Legum, Counsel, Debevoise & Plimpton LLP, Paris
Presentation on the use of investor-State mechanisms to settle trade disputes by Mark A. Clodfelter, Deputy Legal Adviser, International Claims and Investment Disputes, US Department of State, Washington, D.C.
10:00-10:30The definition of investor:indirect claims/ownership and control
by Bart Legum, Counsel, Debevoise & Plimpton LLP, Paris
Discussant: Alexandre de Gramont, Partner, Crowell & Moring LLP, Washington, D.C.
10:30-10:45Coffee break
10:45-11:30National treatment: the "like circumstances" requirement
by Mark A.Clodfelter, Deputy Legal Adviser, International Claims and Investment Disputes, US Department of State, WashingtonD.C.
11:30-12:15Most-favoured-nation treatment: defining the scope of investor's procedural and substantive rights
by Alejandro Faya Rodriguez, Deputy Director-General for International Affairs, Directorate-General of Foreign Investment,
Ministry of Economy, Mexico
12:15-13:00Open discussion between resource persons and participants on issues of concern in the APEC context
13:00-14:30Lunch
14:30-15:15Fair and equitable treatment
by Stephen Bouwhuis. Assistant Secretary, Office of International Law, Australia
15:15-16:00Indirect expropriation/preserving regulatory space
by Gilles Gauthier (Canada)
Discussant on State practice:Carlos Martin Ramirez Rodriguez, General Direction of International Commerce, Competition and Private Investment, Ministry of Economy and Finance, Peru
16:00-16:45Contract claims/treaty claims: the "umbrella" effect of treaties
by Nestor Ballacillo, Assistant Solicitor General, Office of the Solicitor General, the Philippines
Presentation on recent work undertaken by the OECD-CIME on the umbrella clause in investment treaties by Katia Yannaca-Small, Legal Advisor, Investment Division, Directorate for Financial and Enterprise Affairs, OECD
16:45-17:00Coffee break
17:00-17:45Improvements to ISDS provisions in recent investment treaties
Interactive discussion among speakers and participants moderated by Roy Nixon, Chairperson, APEC-Investment Expert Group.
17:45-18:00 Closing remarks bythe IEG Chairperson
by Roy Nixon, Manager, Investment and Compliance Unit, Foreign Investment and Trade Policy Division, Department of the Treasury, Canberra
"APEC-UNCTAD Regional Seminar on InvestorState Dispute Settlement: Key Substantive and Procedural Issues"
CTI 25/2006 T
Mexico City
9-10 October 2006
LIST OF PARTICIPANTSAND RESOURCE PERSONS
Margrete Stevens
Acting Lead Counsel
International Centre for Settlement of Investment Disputes (ICSID)
The World Bank
1818 H Street, NW, WashingtonDC20433, USA
Tel: 202 473 4925, Fax: 202 522 2615/2027
E-mail:
Gabriela Alvarez Avila
Senior Counsel
InternationalCenter for Settlement of Investment Disputes (ICSID)
The World Bank
1818 H Street, NW, WashingtonDC20433, USA
Tel: 202 473 4925, Fax: 202 522 2615/2027
E-mail:
Mark Clodfelter
Assistant Legal Adviser for International Claims and Investment Disputes
United States Department of State
Washington, D.C.20520, USA
Tel: (1 202) 776 83 65
E-mail:
Barton Legum
Member of the New York Bar
Debevoise & Plimpton LLP
21, avenue George V, 75008 Paris, France
Tel: (331) 40 73 12 99 Fax: (331) 47 20 50 82
E-mail:
Roberto Echandi
SmallEconomyTrade & InvestmentCenter (SETIC)
P.O. Box. 663-2150, Moravia, San José, Costa Rica
Te.: (506) 836 6096, Fax (52-55) 52296507
E-mail:
Alejandro Faya Rodríguez
Director General Adjunto de Asuntos Internacionales
Secretaría de Economía
Av. Insurgentes Sur 1940 – 8º. Piso Col. Florida 01030, Del. Alvaro Obregón
México, D.F., México
Tel: (52-55) 52296167, Fax (52-55) 52296507
E-mail:
Francisco González de Cossio
González de Cossio Abogados, S.C. México
Bosque de Acacias 61B, Bosques de las Limas, Miguel Hidalgo 11700
México, D.F., México
Tel: (52-55) 5251 1880, Fax (52 55) 5251 – 1881
E-mail:
Catherine Yannaca-Small
Advisor on International Investment Law, Directorate for Financial and Enterprise Affairs
Organisation for Economic Cooperation and Development (OCDE)
2, rue André Pascal, 75775 Paris Cedex 16, France
Tel: (33) 1 45 24 78 47, Fax: (33( 144 30 61 35
E-mail:
Anna Joubin-Bret
Senior Legal Advisor, International Investment Agreements Section
Division of Investment, Technology and Enterprise Development
United Nations Conference on Trade and Development (UNCTAD)
Palais des Nations, Geneva, Switzerland
Tel: 41 22 917 58 97, Fax: 41 22 917 01 94
E-mail:
Marie-Estelle Rey
Legal Expert, International Investment Agreements Section
Division of Investment, Technology and Enterprise Development
United Nations Conference on Trade and Development (UNCTAD)
Palais des Nations, Geneva, Switzerland
Tel: 41 22 917 58 97, Fax: 41 22 917 01 94
E-mail:
Sergio Rodríguez
Thacher Proffitt & Wood, S:C:
Paseo de Tamarindos No. 400-B Piso 22
Col. Bosques de las Lomas C.P. 05120, México, D.F.
Tel: (52 55) 3000 0698, Fax: 3000 0698
E-mail:
Miguel Rábago Dorbecker
Coordinador
Departemento de Derecho, Universidad Iberoamericana
Prol. Paseo de la Reforma 880, Edif.. H. 1er. Piso
Lomas de Santa Fe, México, D.F., C.P. 01210
Tel: (52-55) 5950 4000 y (52-55) 9177 4400 Ext. 4790 Fax: (52-55) 5940 4244
E-mail:
Shin Ki-Taek
Consejero Comercial
Embajada de la República de Corea
Lope Díaz de Armendriz No. 110
Col. Lomas Virreyes. C.P. 11000, México, D.F.
Tel: (52 55) 5202 9866 Fax: (52 55) 5540 7446
E mail:
Nguyen Manh Hung
Senior Expert
Ministry of Planning & Investment, Foreign Investment Agency (FIA)
2 Hoang Van Thu Str., Hanoi, Vietnam
E-mail:
Tel.: 84 4 7343758 Mobile 09120 68664
Vitaliy N. Sorokin
Trade and Investment Expert, Department of Foreign Economic Relations
Ministry of Economic Development and Trade of the Russian Federation
115324 Moscow, Russia
Ovehinnicovskaya nab. 18/1
Tel: (495) 950 19 72 Fax: (495) 950 12 23
E-mail:
Alexandre de Gramont
Crowell Moring
1001 Pennsylvania Avenue, NW,
Washington, DC20004-2595
Tel. P 202 624 2517 F 202 628 51 15
E-mail:
Carlos Martín Ramírez Rodríguez
Asesor, Dirección General de Asuntos de Economía Internacional
Competencia e Inversión Privada, Ministerio de Economía y Finanzas
Viceministerio de Economía
Jr Lampa Nro. 277, Piso 5, Lima, Perú
Tel: (51-1) 427 4207 311 5930 Anx 3532 Fax 428 6319
E-mail:
Jeswald W. Salacuse
Henry J. Braker Professor of Law
The FletcherSchool, TuftsUniversity
Medford, Massachusetts02155, USA
Tel. 1617 627 3633 Fax 1617 627 3871
E.mail:
Kenneth J. Vandevelde
Professor of Law
ThomasJeffersonSchool of Law
2121 San Diego Avenue, San Diego, CA92110
Tel. (619) 374 6916 Fax (619) 296 4284
E-mail:
Normazli Abd. Rahim
Senior Federal Counsel
Ministry of International Trade and Industry
5th. Floor, bock 10, Government Offices Complex
Jalan Duta 50622 Kuala Lumpur, Malaysia
Tel. (603) 5203 3022 /603) 5203 4704 Fax: (603) 6201 2306
E-mail:
Punwipa Na Bangchang
Third Secretary, Division of International Economic Policy
Department of International Economic Affairs, Ministry of Foreign Affairs
Sri Ayudhaya Road, Bangkok10400, Thailand
Tel. (662) 643 5000 Ext. 4068 Fax: (662) 643 5247
E-mail:
Varapol Chensavasdijai
Second Secretary
Department of Treaties and Legal Affairs, Ministry of Foreign Affairs
Sri Ayudhaya Road, Bangkok10400, Thailand
Tel: (662) 643 5000 Ext. 1133 Fax: (662) 643 5041
E-mail:
Zhao Jie
Department of International Trade & Economic Affairs
Ministry of Commerce
The People´s Republic of China
2 Dong Chang An Street, Beijing, China, P.C. 100731
Tel: (8610) 6519 7714 Fax (8610) 6519 7213
E-mail:
Nestor J. Ballacillo
Assistant Solicitor General
Office of the Solicitor General
134 Amorsolo Street, LegaspiVillage
MakatiCity, The Philippines
E-mail:
Gregorio Canales Ramírez
Director General de Inversión Extranjera
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8
Col. Florida 01030, México, D.F.
Tel: (52-55) 5229-6163 y 64 Fax: (52-55) 5229-6507
E-mail:
J. Nicolas Guerrero Peniche
Director de Derecho Internacional
Consultoría Jurídica, Secretaría de Relaciones Exteriores
Plaza Juárez #20, Oficina 677, Piso 6, CP. 06010, México D.F.
Tel.: +(5255) 9159 5318 Fax: +(5255) 9159 5315
E-mail:
Wanchart Santikhunchorn
Executive Director
Thailand Office of the Attorney General
Walaiporn Sriprayoonsakul
Thailand Public Prosecutor
Thailand Office of the Attorney General
E-mail:
Gilles Gauthier
Director, Investment Trade Policy Division
International Trade Canada
125 Sussex Drive, OttawaK1A 0G2, Canada
Tel. 944-2427
E-mail:
Roy Nixon (Chairman of the APEC Investment Experts Group IEG)
Senior Adviser, Investment and Compliance Unit
Foreign Investment and Trade Policy Division, The Treasury
Langton Crescent, Canberra Act 2600, Australia
Tel: (02) 62633764, Fax: (02) 62632940
E-mail:
Stephen Bouwhuis
A/g Assistant Secretary
Office of International Law
Australia
Tel: (+ 61 2) 6250 6035, FaX: (+ 61 2) 6250 5931
Email:
Alejandro Tagle Robles
Director General Adjunto del Registro Nacional de Inversiones Extranjeras
Secretaría de Economía
Insurgentes Sur No. 1940 Piso 8, Col. Florida
Deleg. Álvaro Obregón, C.P. 01030 México, D.F.
Tel: 52-55 52296100 Ext 33403 Fax: 52-55 52296507
E-mail:
Ericka Marcela López Vargas
Directora de Asuntos Jurídicos y de la Comisión Nacional de Inversiones Extranjeras
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. 52-55 5229 6100 Ext. 33404 Tel. Dir. 52-55 5229 6170
E-mail:
Erika Iliana Quevedo Chan
Subdirectora de Tratados para Europa y Organismos Internacionales
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33415
E-mail:
Alma Lila Alva
Embajada de la República de Corea en México
Lope Díaz de Armendriz No. 110
Col. Lomas Virreyes. C.P. 11000, México, D.F.
Tel: (52 55) 5202 9866 Fax: (52 55) 5540 7446
Israel Octavio Torres López
Jefe de Departamento de Tratados para América
Secretaría de Economia
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33433
E-mail: ,mx
Zaida Sariñana Schroeder
Jefa de Departamento de Tratados para Europa y Organismos Internacionales
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33425
E-mail:
Jacqueline Márquez Rojano
Subdirectora de Tratados Bilaterales y Organismos de Protección a la Inversión
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33413
E-mail:
Ana Cecilia Moctezuma
Subdirectora de Resoluciones Específicas
Dirección de Asuntos Jurídicos, Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33406
E-mail:
Miguel Flores Bernés
Comisionado, Comisión Federal de Competencia
Av. Santa Fe, No. 505, piso 24
Col. Cruz Manca Santa Fe, CP 05349, México D.F.
Tel. (52-55) 27896533
E-mail:
Monica Mirón Medellín
Subdirectora de Tratados Bilaterales y APEC
Secretaría de Economía
Av. Insurgentes Sur 1940, Piso 8, Col. Florida
Del. Alvaro Obregón, C.P. 01030, México, D.F.
Tel. Conm. (52-55) 5229 6100 ext. 33435
E-mail:
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