Ecuador Terminates BITs with Eight LatAm States
November 5, 2008, Global Arbitration Review

Ecuador has terminated its bilateral investment treaties with Cuba, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, the Dominican Republic and Uruguay on the grounds for not bringing enough investment. This significant development has caused more uncertainty for investors in the country.

"This is the latest in a series of steps that Ecuador has taken against foreign investors," says Washington, DC International Arbitration partner Jonathan C. Hamilton. "Ecuador attempted to limit its consent to ICSID arbitration relating to natural resources and adopted a new constitution that impacts foreign investment and dispute mechanisms. Despite these steps, Ecuador still has a range of domestic and international obligations to investors."