Ecuador accused Chevron Corp on Thursday of filing an international arbitration claim against the country in an attempt to shield itself against losing a $27 billion environmental damage lawsuit.
Chevron, the world’s third biggest oil company, said it had filed an international arbitration claim against the government of Ecuador, citing violations of the country’s obligations under the US-Ecuador bilateral investment treaty, investment agreements and international law.
Exiting ICSID and joining ALBA and UNASUR,along with the customs restrictions it applied on its CAN neighbours, are the recent measures that have been taken by the government of Ecuador to demonstrate that there is an alternative trade policy.
Ecuadorean President Rafael Correa said his country won’t keep negotiating a commercial agreement with the European Union until the trade bloc complies with World Trade orders to cut duties on Ecuadorean bananas.
Analysis of the third round of egotiations of a free trade agreement (FTA) between the EU and the Andean countries (Ecuador, Peru and Colombia).
"I reiterate, we’re not negotiating a free trade agreement with the European Union."
President says agreement threatens social advances
Negotiations toward a trade-opening deal between the EU and a group of Andean countries hit another snag this week when Ecuador’s president publicly denounced the talks, calling them ‘biased’.
Ecuador will not sign a free trade deal with the European Union, President Rafael Correa said, criticizing the tenor of talks between the two. The European Union can give whatever pretty name it wants, but we are headed toward a free trade agreement, and we will not accept that, Correa said on Saturday.
Peruvian, Colombian and Ecuadorian officials will hold meetings with the European Union next week for a Free Trade Agreement. The discussion on intellectual property is seen as one of the most sensitive in the negotiations, because the Europeans have demanded an extension of the terms for the copyrights and data protection.
Intellectual property, a potential regional customs union, human rights, and bananas triggered heated debate last week in Bogota during the first round of negotiations toward a free trade agreement between the European Union and Andean nations Colombia, Ecuador and Peru.
The FTA will not be negotiated taking the three Latin American countries as a block. The new format designed for the negotiations is an unique multi party agreement in which each country’s particular interests will be taken into consideration regarding specific products, but all framed within the same agreement.
Ecuador President Rafael Correa approved negotiation of a bilateral agreement with the European Union because of the impossibility to do it in a block through the Community of Andean Nations.
A tribunal has determined that it holds jurisdiction to hear a claim brought by Chevron Corporation against Ecuador for alleged violations of the Ecuador-United States bilateral investment treaty (BIT).
When the government of Ecuador failed to make a scheduled interest payment on private bonds this month, it was hardly the first time a country had defaulted in the middle of a financial crisis.
Ecuador’s president has ruled out a separate free trade agreement with the European Union, outside of the Andean Community trade bloc, as Peru and Colombia are seeking. However, negotiators at the Foreign Ministry say that if it is necessary to seek a free trade deal separately from the rest of the bloc, they will do so.
Ecuador wants to negotiate a trade deal with the European Union, reversing its preference for group talks a day after neighboring Colombia and Peru abandoned efforts at a regional partnership in favor of their own deals with the European bloc.
Ecuador’s new constitution provides that Ecuador will not enter into international agreements under which Ecuador would have to cede jurisdiction to international arbitral tribunals in contractual or commercial matters between the State and individuals or corporations.
Ecuador would agree with Peru and Colombia to negotiate a bilateral Association Agreement between the Andean Community (CAN) and the European Union (EU), stated Thursday Peru’s minister of Foreign Trade and Tourism, Mercedes Aráoz.
A panel from the World Bank’s International Center for Settlement of Investment Disputes, or Icsid, said late Tuesday that it has jurisdiction for the claim of the US-based oil company Occidental Petroleum Corp. (OXY) against Ecuador.