Caracas, 13 Sep. AVN. - The Hildegard Rondon de Sanso analyst said Friday that the international arbitration system has been built on commercial arbitration, so this mechanism for conflict resolution is "wicked and unreliable".
In that regard, he referred to the International Centre for Settlement of Investment Disputes (ICSID), an instance in which ConocoPhillips sued Petroleos de Venezuela by refusing to migrate to joint ventures its participation agreement in Orinoco Oil Belt ( FPO) in Petrozuata developments, The Hammock and CoroCoro, now Petroanzoátegui, PetroPiar and Petrosucre, and decided to take the courts since 2007.
The aforementioned international body, attached to the World Bank, is composed of three judges. "One is appointed by the plaintiff, ie the investor, one is representative of the defendant, and the other is named among the two judges, but they never agree and finishes naming the arbitration center. Since we left the arena and we are losing because we are in the minority, "he said during an interview with the program Word Crossing broadcast by Telesur.
Rondon said that most people "think it is a system that will solve everything because supposedly is fast and because in the country there are few people who know the law of international trade. It turns out that this court is not flexible and they do not have to see to our right, because it is attached to the common law. "
The analyst, in his book Fundamental Legal Aspects of International Investment Arbitration, explains how Venezuela agreed, during the Fourth Republic, the bilateral investment treaty with the Netherlands and the Netherlands. He adds, "each of its clauses is intended to protect investors and ensure that states do not subjugate".
ConocoPhillips seeks through ICSID claims against the compensation, royalties and repairs over 30,000 million, after Venezuela, asserting its policy of full sovereignty, decided to transform into joint ventures with majority stake for the nation's operating agreements signed in the 90s as part of the so-called oil opening, considered harmful to the interests of the Republic.
The ICSID Tribunal issued a decision on some edges recognizes the right of the Venezuelan government to invoke national jurisdiction, as well as to establish a favorable tax scheme to the Nation, as it has been to increase the amount of royalties and Tax Income (income tax) paid by foreign oil companies in the country. However, the court also ruling that Venezuela "failed in its duty to bargain in good faith."
According to the analyst, the ICSID ruling is based on the clause number 6 of the bilateral treaty, which says "for a lawful expropriation is considered to be a fair and equitable treatment, not only based on ongoing negotiations," it which is considered by Rondon as a decision "absurd and surprising" because the Government maintained at all times with the transnational negotiations.
