(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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74<br />
EDF, has issued a similar complaint against <strong>the</strong> Republic <strong>of</strong> Argentina 193 <strong>and</strong> also<br />
<strong>the</strong> German company Siemens is dem<strong>and</strong>ing compensation payments: The news<br />
agency NfA, Nachrichten für Aussenh<strong>and</strong>el, reported that:<br />
“Siemens wants 500 million US-dollars from Argentina<br />
Berlin (vwd) – The Siemens AG, Munich, has dem<strong>and</strong>ed 500 million US-dollars<br />
in compensation payments from Argentina for <strong>the</strong> cancellation <strong>of</strong> a contract.<br />
As emanated from a note directed to <strong>the</strong> U.S. Securities <strong>and</strong> Exchange Commission<br />
(SEC) on Monday, <strong>the</strong> company has filed for an arbitration proceeding<br />
at <strong>the</strong> International Center <strong>of</strong> Investment Disputes <strong>of</strong> <strong>the</strong> World Bank. Siemens<br />
argues that, through <strong>the</strong> cancellation, Argentina has infringed an investment<br />
treaty with Germany.” 194<br />
Complaints <strong>of</strong> private companies against states at <strong>the</strong> ICSID on <strong>the</strong> basis <strong>of</strong><br />
bilateral investment treaties have risen from five in 2000, to twelve in 2001, to fifteen<br />
in 2002. 195 What is explosive about <strong>the</strong>se allegations, which are based on BITs, is<br />
first <strong>of</strong> all that such allegations can only be undertaken by foreign private investors<br />
<strong>and</strong> that domestic investors are not allowed to take such legal actions, <strong>and</strong> second<br />
<strong>of</strong> all that <strong>the</strong>re is a procedural detail that every complaint filed on <strong>the</strong> basis <strong>of</strong> BITs<br />
is held before an international arbitration courts, with special emphasis on business<br />
<strong>and</strong> investors’ rights <strong>and</strong> not on social or environmental aspects. Luke Eric Peterson<br />
<strong>of</strong> <strong>the</strong> International Institute for Sustainable Development (IISD) comments, regarding<br />
<strong>the</strong> wave <strong>of</strong> individual complaints against <strong>the</strong> Argentinian government:<br />
“A troubling feature <strong>of</strong> this growing spate <strong>of</strong> cases against <strong>the</strong> Argentine<br />
Republic, is that foreign investors are mounting a series <strong>of</strong> individual ad-hoc<br />
arbitrations which may challenge essentially <strong>the</strong> same government measures.<br />
Because <strong>the</strong>se arbitrations are proceeding in parallel, <strong>and</strong> Tribunals are not<br />
strictly bound by <strong>the</strong> determinations <strong>of</strong> o<strong>the</strong>r (or earlier) Tribunals, <strong>the</strong> stage is<br />
set for a series <strong>of</strong> potentially divergent or even conflicting rulings.” 196<br />
It is not surprising that, given <strong>the</strong>se experiences <strong>of</strong> <strong>the</strong> Republic <strong>of</strong> Argentina,<br />
<strong>the</strong> population <strong>of</strong> <strong>the</strong> neighboring country <strong>of</strong> Uruguay is already sensitized to <strong>the</strong><br />
193 Les Echos, September 12, 2002: EDF lance une procédure contre le gouvernement argentin.<br />
194 Own translation <strong>of</strong> <strong>the</strong> following original text: “Siemens will 500 Mio USD von Argentinien.<br />
Berlin (vwd) - Die Siemens AG, München, fordert von Argentinien 500 Mio USD Schadenersatz für die Stornierung<br />
eines Auftrags. Wie aus einer Mitteilung an die US-Börsenaufsicht SEC vom Montag hervorgeht, hat das<br />
Unternehmen beim Internationalen Zentrum zur Beilegung von Investitionsstreitigkeiten (ICSID) der Weltbank ein<br />
Schiedsgerichtsverfahren beantragt. Mit der Stornierung habe Argentinien gegen ein Investitionsabkommen mit<br />
Deutschl<strong>and</strong> verstoßen, argumentiert Siemens.” Taken from: NfA, December 9, 2003, http://www.<strong>MERCOSUR</strong>info.com/al/index.shtml.<br />
195 Peterson, Luke Eric (International Institute for Sustainable Development – IISD): Research Note: Emerging Bilateral<br />
Investment Treaty Arbitration <strong>and</strong> Sustainable Development, August 2003, p. 3.<br />
196 Ibid., p. 5.