Comments by Jonathan C. Hamilton, in “Ecuador threatens to pull out of US BIT,” Latin Lawyer (2007) (excerpt)

Ecuador joined Bolivia and Venezuela in steps over a period of years to denounce or withdraw from investment protection treaties. As of 2007, Ecuador announced its threats as an initial step in a long process that extended over the next decade.

The government of Ecuador has signaled that it could terminate its bilateral investment treaty with the US, or at the very least renegotiate its terms…. Earlier this month Foreign Affairs Minister Maria Espinosa reportedly said:  "This treaty has caused our country a lot of problems.  We think that this treaty doesn't represent our national interests."

Ecuador's announcement follows Bolivia's withdrawal from the International Centre for Settlement of Investment Disputes in Washington, DC earlier this month.  Bolivia's withdrawal takes effect in November….

Jonathan Hamilton, a partner at White & Case LLP, says Ecuador has announced it is pursuing an analysis of its investment treaty programme: "Ecuador's approach appears to contrast with Bolivia's denunciation of the ICSID Convention, which could provoke more claims in the short term."

Venezuela has also indicated it may withdraw from ICSID, but has not yet officially done so.

As of 2007, Ecuador's approach appeared to contrast with Bolivia's denunciation of the ICSID Convention, which provoked more claims in the short term. Within two years, Ecuador followed that same approach.

Jonathan C. Hamilton