CONVENTION BETWEEN ECUADOR AND PERU

A Convention has been published which was entered into between the governments of Ecuador and Peru in relation to reciprocal promotion and protection of investments. It contains, among others, the following provisions:

Each Contracting Party shall promote within its territory the investments from the other party, which shall be afforded full protection and security.

Each Contracting Party shall ensure a fair and equitable treatment of the investments from the other Contracting Party, giving them a treatment not less favorable than the one given to investments from its own investors or from another country.

Each Contracting Party shall ensure that investors from the other Party are able to freely transfer sums related to the registered investment, whether capital, gains, repayment of loans, investment sale proceeds, etc.

Any controversy that may arise between either Contracting Party and an investor from the other Party in connection with an investment made pursuant to this Convention shall be amicably settled; however, if such settlement is not attained, the controversy shall be referred to:

1) a competent court of the Contracting Party in the territory of which the investment was made or

2) international arbitration at the International Center for Settlement of Investment Disputes (ICSID), created on March 18, 1965 and seated in Washington.

(Unnumbered decree of the Ministry of Foreign Affairs, Official Register No. 341 of December 17, 1999)

 

Contributed by Pérez, Bustamante y Pérez