Argentina Under Bilateral Investment Treaties: Background and Principal Legal Issues Paolo Di Rosa* I. INTRODUCTION/SUMMARY One of the consequences on an international level of the mea-sures adopted by the Government of Argentina in connection with the economic crisis suffered by that country in late 2001 and early Information about breaches alleged is primarily derived from the claimant’s request of arbitration, claimant’s memorials and/or arbitral decisions. Enron Corporation, Ponderosa Assets, L.P. See case mapped in Subject Navigator on Investor-State LawGuide, See discussion and analysis of the case on IAReporter, Decision on Jurisdiction (Ancillary Claim) (English), Decision on Jurisdiction (Ancillary Claim) (Spanish), Decision on Claimants' Request for Rectification and/or Supplementary Decision of the Award (English), Decision on Claimants' Request for Rectification and/or Supplementary Decision of the Award (Spanish), Decision on Claimants' Request for Request for Rectification and/or a Supplementary Decision of the Award (English), Decision on Claimants' Request for Request for Rectification and/or a Supplementary Decision of the Award (Spanish), Decision on the Argentine Republic’s Request for a Continued Stay of Enforcement of the Award (ICSID Rule 54) (English), Decision on the Argentine Republic’s Request for a Continued Stay of Enforcement of the Award (ICSID Rule 54) (Spanish), Decision on the Claimants’ Second Request to Lift Provisional Stay of Enforcement of the Award, Decision on the Application for Annulment of the Argentine Republic (English), Decision on the Application for Annulment of the Argentine Republic (Spanish). In treaty-based cases that are simultaneously contract-based or based on national investment law ("mixed" disputes), a case is deemed concluded (for purposes of the Navigator) if the tribunal dismissed the case on jurisdiction or finds no breach of the IIA, even if it proceeds to adjudicate the contract- or statutory-based claims. End of Document. The Navigator is updated on a regular, typically biannual, basis. The structure of economic activities follows the International Standard Industrial Classification of All Economic Activities, Rev.4 (UN ISIC Rev.4). The Italaw.com portal offers a wide collection of case documentation for many investor-State disputes. Additional notes: • Judicial review by national courts (set-aside proceedings); and • PCA: Permanent Court of Arbitration Enron Corporation and Ponderosa Assets, L.P. initiated ICSID arbitral proceedings claiming multiple violations of the 1991 Argentina-US BIT and requesting damages. • SCC: Stockholm Chamber of Commerce (Arbitration Institute) Such arbitrations are also referred to as treaty-based investor-State dispute settlement (ISDS) cases. In Enron v. Argentina, the committee found that the tribunal erred by too simply and quickly drawing legal conclusions from economists’ expert reports. PCA). • Discontinued: the arbitration was discontinued for any reason other than due to a (known) settlement. Starting in 1989, the company received a $56 million loan from the Overseas Private Investment Corporation (OPIC) for a power … In the Respondent's estimate, Enron would have paid US$84.8 million for the purchase of the original 17.5% interest in TGS and an alleged US$250.4 million for the additional 18% purchased later, resulting in a total investment of US$335.1 million for the … To reverse the situation, President Carlos Menem initiated the privatization of YPF in 1993.The Spanish corporation Repsol purchased 98 percent of YPF in 1999. Argentina’s defense is otherwise known as a “necessity defense,” and such term will be used to describe Argentina’s defense claim throughout this paper. })(window,document,'script','//www.google-analytics.com/analytics.js','ga'); To access a full list of documentation available with respect to a case, users are invited to use (i) the link to the case page on http://italaw.com, and/or (ii) links to the websites of governments and/or arbitral institutions provided in the “Additional information” section. This section provides links to sources of information used for gathering data for the case at hand or otherwise relevant to that case. When President Hipolito Yrigoyen founded YPF in 1922, it was the first entirely state-owned oil company in the world. The UNCTAD Investment Dispute Settlement Navigator – the ISDS Navigator – is maintained by UNCTAD’s IIA Section. If there are more than five claimants in the case, the names of all claimants can be replaced by the name of the first three claimants followed by the words “and others”. The summary of the dispute describes in very general terms the conduct allegedly in breach of IIA obligations as argued by the claimant (non-exhaustive). Included are those decisions that concern the substance of the case and affect the final outcome. WorldCom was a U.S.-based telecom company that underwent one of the largest bankruptcies in U.S. history following a massive spate criminal of accounting fraud. Applicable IIA Nigeria now appeals from the order granting enforcement of the Award. A link to the relevant case page at http://italaw.com is provided where such page is available, so that users could browse all documents relating to the case at hand. m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) Status/Outcome of original proceedings Amount claimed refers to the amount of monetary compensation claimed by the investor, not including interest, legal costs or costs of arbitration. For the purposes of such conversion, the OANDA Historical Currency Converter is being used; the date of conversion is the date of the document or other source from which the information was obtained (e.g. Enron scandal, series of events that resulted in the bankruptcy of the U.S. energy, commodities, and services company Enron Corporation and the dissolution of Arthur Andersen LLP, which had been one of the largest auditing and accounting companies in the world. Follow the latest developments in investment policies around the world. This refers to the current status of the original arbitration proceedings. Go Pro to view an analysis and graphs of case roles, types and more. These are the arbitral rules in accordance with which the proceedings are conducted. • Technical assistance: delivering trainings, seminars and workshops; conducting IIA and model BIT reviews; offering ad-hoc advice to strengthen the capacity of beneficiaries in handling the complexities of the IIA regime, This difficulty was illustrated in Enron v Argentina, a case regarding the effect of state measures on the claimant’s shares in a gas distribution company. A case remains pending if any of the following elements remain to be decided: jurisdiction, liability (merits), compensation. BRIEF SUMMARY Enron claimed that Argentina violated an … Arbitral decisions rendered Due to mismanagement and embezzlement in the 1970s and 80s, the company suffered significant annual losses, and many employees were fired. Another major development inside Enron was the beginning of the company's pivot to overseas that was expanded upon in the 1990s. Otherwise, it is derived from other publicly available sources that are deemed reliable. that investments shall at all times be accorded fair and equitable treatment (Article II(2)(a) of the BIT) First Jurisdiction Decision: Enron Corporation and Ponderosa Assets L.P. v. Argentine Republic, ICSID Case No ARB/01/3, Decision on Jurisdiction, January 14, 2004 Similarly, procedural orders issued by arbitral tribunals are not included. This refers to the economic sector to which the investment at issue allegedly belongs. • ICSID: International Centre for Settlement of Investment Disputes Please cite as: UNCTAD, Investment Dispute Settlement Navigator, available at https://investmentpolicy.unctad.org/investment-dispute-settlement. The tribunal in that case noted that ‘[a] rather sad world comparative experience in the handling of economic crises shows that there are always many approaches to address and correct such critical events, and it is difficult to justify that none of … • Settled: the disputing parties settled the case and the arbitral proceedings were discontinued for that reason. An objective evaluation of a country’s legal, regulatory and institutional framework to attract direct investments. • Develop a wide range of tools to support the formulation of more balanced international investment policies. Decisions, judgments and/or awards rendered in the course of follow-on (post-award) proceedings, as well as any individual opinions appended to them, are recorded. As a general rule, a rounded figure (to the nearest hundred thousand) of the amount claimed or awarded is provided. UNCTAD's Work Programme on International Investment Agreements (IIAs) actively assists policymakers, government officials and other IIA stakeholders to reform IIAs with a view to making them more conducive to sustainable development and inclusive growth. Enron Corporation and Ponderosa Assets, L.P. v. Argentine Republic, ICSID Case No. • The Navigator only records treaty-based disputes or treaty-based aspects of "mixed" disputes. The composition of the ICSID ad hoc committees that adjudicate requests for annulment under the ICSID Convention is recorded. Explore the world's most comprehensive free database of investment treaties and model agreements. Follow-on (post-award) proceedings include three types of legal proceedings: Composition of tribunal at 13-14. This is the year in which the notice of arbitration / request for arbitration was submitted by the claimant. ICSID annulment proceedings or domestic judicial review), are marked according to the outcome of the original arbitral proceeding (i.e. If the Navigator includes more than one case with the exact same name, then “(I)” is added to the case name of the earlier case, and a “(II)”, “(III)”, etc. Economic sector and subsector as a result of resignation, disqualification or passing away), the names of both the previous and subsequent arbitrator are recorded. By evaluating Argentina‘s defences in a manner that was so incomplete, according to the committee, it amounted to a failure to apply the applicable law. Related Content. ISDS Navigator • CRCICA: Cairo Regional Centre for International Commercial Arbitration Original arbitration proceedings panel held that Argentina was the first entirely state-owned oil company the! Of investment treaties and model agreements many employees were fired that adjudicate requests disqualification! 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