Venezuelan Investment Arbitration Experience: From Unilateral Termination of Dutch Treaty, the Denunciation of ICSID Convention to Its Continued Participation as Respondent State in Investment Arbitration

In the first decade of the twenty-first century, Bolivia, Ecuador, and Venezuela decided to denounce the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) arguing reasons of national sovereignty and considering that the system created by the World Bank privileged the interests of foreign investors over those of the host States. In the Venezuelan case—and unlike Ecuador—this decision was not accompanied by the denunciation or unilateral termination of bilateral treaties (it only occurred with the Dutch Treaty). The Venezuelan administration, faced with the imminent number of cases that would be filed against it, considered that the withdrawal of the multilateral treaty would be a good option. However, reality has shown that this was a circumstantial decision, which has not prevented several claims by foreign investors from being filed before the International Centre for Settlement of Investment Disputes—ICSID (Additional Facility Rules) or the Permanent Court of Arbitration (PCA) to date.