Investment Policy Brief 6, November 2016
Peruvian State’s Strategy for Addressing Investor State Disputes
This policy brief explains the approach adopted by Peru to establishment of the “System for the Coordination and Response of the State in International Investment Disputes” (SICRECI) and the role it played in responding to investor-state dispute settlement (ISDS) cases faced by Peru. It gives an overview of the sixteen ISDS cases brought against Peru to date. While this institutional development adds value in terms of managing cases as they arise, the paper points out that this system faces major hurdles due to multiple challenges arising from ISDS. As shown in the paper, after the establishment of SICRECI, Peru continued to face a rising number of ISDS cases.
This brief is part of the South Centre’s policy brief series focusing on international investment agreements and experiences of developing countries.
While the reform process of international investment protection treaties is evolving, it is still at a nascent stage. Systemic reforms that would safeguard the sovereign right to regulate and balance the rights and responsibilities of investors would require more concerted efforts on behalf of home and host states of investment in terms of reforming treaties and rethinking the system of dispute settlement.
Experiences of developing countries reveal that without such systemic reforms, developing countries’ ability to use foreign direct investment for industrialization and development will be impaired.
The policy brief series is intended as a tool to assist in further dialogue on needed reforms.
** The views contained in the policy brief are personal to the author and do not represent the institutional views of the South Centre or its Member States.
This article was tagged: Bilateral Investment Treaties (BITs), Dispute Settlement, Foreign Direct Investment (FDI), Free Trade Agreements (FTAs), Investment Agreement, Investment Policy Briefs