Uruguayan President Jose Mujica expressed his disapproval of the decision made by the U.S Supreme Court to reject Argentinean appeal against an order to pay the full value of the bonds.
Mujica told reporters yesterday there is a dire need for international arbitration disputes to be resolved in regional integration blocks such as the Southern Common Market (Mercosur), the Union of South American Nations (Unasur, by its Spanish acronym) and the Organization of American States (OAS).
His comments coincided with Unasur´s ninth meeting of senior official whom met to discuss the details of a regional investment tribunal and the creation of a center for investigation of international settlement dispute cases.
The proposed center will seek to analyze current investment disputes and create mechanisms to reform arbitration proceedings. Thus far, many important proposals have stemmed from the meetings including strategies that would enhance transparency and legislative neutrality in international investment disputes.
The proposal emerged as an alternative to the International Convention for Settlement of Industrial Disputes (ICSID) which was created by the World Bank in 1964 to moderate legal disputes between international investors and national governments.
Since the ICSID was established, South American countries have made up 27 percent of all arbitration cases, which is higher than any other geographic region.
Bolivia, Ecuador, and Venezuela have all abandoned the ICSID contracts. Argentina was the latest country to express interest in separating from the ICSID (Argentina is currently the country with highest number of active cases being conducted in the ICSID.)
The Unasur settlement center was first suggested in 2009 at the at the 39th Session of the General Assembly of the OAS by former Ecuador’s Foreign Minister Fander Falconí.
The proposed center can be viewed in the larger context of South American countries desire protect national sovereignty and to reform international investment law.
The final details are expected to be solidified to celebrate the inauguration of the UNASUR headquarters in Quito, Ecuador next month.