The Challenge of UNASUR Member Countries to Replace ICSID Arbitration

Abstract

In the 2000s, the financial crisis in Argentina and several nationalizations carried out by governments in South America have spawned a large number of claims before International Centre for Settlement of Investment Disputes (ICSID). Latin Americans began to look at ICSID critically, there have been complaints about ICSID's connections with the World Bank; non-commercial interests, such as health or environmental protection, have not received adequate attention in the arbitration cases; a lack of transparency by arbitration panels; and the absence of an appeals process, but only a limited annulment procedure. This situation generates impacts upon the overall due process of ICSID arbitrations and Latin American hostility against ICSID, such the Bolivarian Alliance for the Peoples of our America Peoples'Trade Treaty (ALBA-TCP) Declaration to denounce ICSID Convention and the firm intention of Union of South American Nations (UNASUR) countries to create a regional arbitration centre to replace ICSID arbitration.