Saturday, August 12, 2006

Investor-State Arbitrations

As I have mentioned before, Brazil has not signed the 1965 Washington Convention. Brazil has signed about 14 Bilateral Investment Treaties, and all such Treaties establish arbitration to take place under either the ICSID or the UNCITRAL Rules. To date, however, none of these BITs have been passed into law as they haven't been ratified by the Brazilian Senate.

Undoubtedly this lack of ratification brings legal uncertainty to foreign investors in Brazil, but it doesn’t look like any of such BITs —nor the 1965 Washington Convention— will be ratified any soon.

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