The arbitral tribunal, an agency of the World Bank, dismissed the request for annulment of the demand for the multinational presented by the Ecuadorian authorities, who noted that this fact confirms the increasingly widespread conviction States on the inequity of an arbitration system created precisely for investors to defend their interests.
For his part, President Rafael Correa called it “another attempt” to national sovereignty, while noting that it is “another work of treaties signed in the long and sad neoliberal night”.
The US Company sued Quito in 2006 by the cancellation of his contract to exploit an oil block in the Amazon region.
Andean country authorities then claimed that Oxy had given to a Canadian company 40 percent of its exploitation rights without the consent of the Minister of Energy.
The truth is that ICSID is not an independent body, but part of the World Bank Group, which receives its funding, and more countries subscribed to this institution achieve construct arguments in its favor, the decision underline the analysts, is always determined in favor of investors.
Well known is the World Bank’s neoliberal policies, which have plunged the people into misery and lead to massive violation of human rights, as a direct result of the imposition of programs of privatization of public assets.
In 2009, Ecuador withdrew from that entity, three years after Venezuela would, by stating that the failure of the international organization-in its totality-almost, defend the interests of transnational corporations.
Back in April 2007, Bolivia resigned as an act of defense of its sovereignty in the management of its trade relations with other countries.
President Evo Morales said that 36% of the cases handled by the ICSID ended with a favorable ruling to the private investor, and 34% were settled out of court, but with compensation for the investor, while in few cases won by the States, they did not get compensation.
Do not call to deception, but in his opinion the ICSID reduced the fine payable by Ecuador, the country must still pay a very high figure, equivalent to 3.3% of the state budget for 2016.
The reality is that the ICSID works on faked originally conceived by the developed countries by the World Bank rules to ensure the legally organized natural resources of people looting.
Translated by: Daysi Olano Fernandez