Costa Rican businessmen complain that because of export subsidies granted to sugar producers in India, there has been an artificial increase in production, causing prices to fall below costs.
Édgar Herrera, executive director of the Industrial Agricultural League of Sugarcane (Laica), explained to Elobservador.cr that "... These subsidies are greater than those allowed by the World Trade Organization, in the order of $10 billion annually.
The company Oceana Gold has paid the $8 million it owed because of the international arbitration case it lost against the Salvadoran state and has announced that it has no plans to continue mining activities in the country.
With the payment of $8 million plus interest, an end has been brought to the litigation that began years ago between Pacifi Rim, now Oceana Gold, and the Salvadoran state.
The Public Prosecutor's Office has frozen the company's property, vehicles and bank accounts, because it has not yet paid the $8 million plus interest owed from an international arbitration case which it lost to the Salvadoran State.
From a statement issued by the Attorney General of El Salvador:
The Attorney General of the Republic managed to freeze buildings, vehicles and bank accounts owned by the mining company Oceana Gold, formerly Pacific Rim, for non-payment of court costs to the State of El Salvador, under an international arbitration case initiated by the mining company with the International Center for Settlement of Investment Disputes (ICSID), which it lost and in which it was ordered to pay eight million dollars for expenses incurred by the country.
The Inter-American Commercial Arbitration Commission rejected the arguments put forward by the Costa Rican construction company, which demanded payment of $13 million for alleged overcharges incurred in a road works project within the Fomilenio project.
From the statement issued by the Attorney General:
Panama.The Attorney General's Office reports that a new international arbitration case has been won by the State of El Salvador, for thirteen million dollars, in a lawsuit filed against the FOMILENIO project.
A new ruling by the International Center for Settlement of Investment Disputes requires the mining company OceanaGold to pay interest on the $8 million it owes to the Salvadoran State.
From a statement issued by the Comptroller General of the Republic:
The International Center for Settlement of Investment Disputes (ICSID) has reported that the mining company Oceana Gold (formerly Pacific Rim) must pay interest to the State of El Salvador on the legal costs owed by the aforementioned transnational.
The International Centre for Settlement of Investment Disputes has ruled in favor of El Salvador in the dispute with the mining company OceanaGold, owner of the El Dorado gold mine.
From a press release by OceanaGold Corporation:
(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) has been advised that the arbitration tribunal constituted by the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) has found in favour of the Government of El Salvador (the “Government”) in its dispute with an OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID granted an award of US$8 million to the Government of El Salvador to cover its legal fees and costs.
Aguilar Castillo Love is a leading international law firm with offices in Central America and Ecuador.
Organization that operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Central America
Phone: (505) 2225 8748
Experts will be meeting in Panama City from 16th to 18th of March to discuss issues and progresses related to arbitration procedures in Latin America and the world.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
Panama, February 29, 2016. Panama will host the Conference of the International Court of Arbitration of the International Chamber of Commerce (ICC PANARB 2016) and the third version of the Biennial Conference of the Latin American Arbitration Association (ALARB 2016), which will run from 16 to 18 March, with the aim of highlighting the main progresses and developments in arbitration in Latin America and the world, in order to ensure greater awareness of costs in arbitration proceedings.
The government has activated the Mechanism for Trade Dispute Settlement in Sieca arguing the imposition of non-tariff entry barriers on Salvadoran juices and nectars.
Margarita Ortez, head of the Directorate of Administration of Trade Agreements (Datco), at the Ministry of Economy and Trade, told Elmundo.sv that "... the country decided to make use of this facility three weeks ago, because 'there was non compliance on the part of Honduras in the provisions in the field of juices and nectars, and we are resolving it using the legal framework provided for the Central American region. '"
As of July 1 the arbitration panel ruling which came down on the side of Costa Rica will be put into practice, and from now on all Costa Rican exports to the Salvadoran market will enjoy the preferences stated in the DR-CAFTA.
From a statement issued by the Ministry of Foreign Trade of Costa Rica:
Costa Rican exports to El Salvador receive preferential treatment of CAFTA-DR as of July 1
The event which will be held from February 22nd to 24th in San José will focus on the practice of international arbitration in resolving contractual problems in construction projects.
From a statement issued by the International Chamber of Commerce in Costa Rica (ICC):
Among the topics to be discussed during this conference are arbitration in Latin America and its current status, recognition and enforcement of foreign awards in Latin America, the rules of the ICC Dispute Board: the case of the Channel Tunnel, the characteristics of disputes in the construction industry, the future of the Committees of Disputes in Latin America, the resolution of disputes in FIDIC construction contracts, among other things.
The conflict between the Salvadoran government and the Italian company Enel has deteriorated the business climate and the country's image as an investment destination.
"The unwillingness of the government to enforce arbitration awards," breach of these and "the politicization of the conflict Between El Salvador and the investor" are some factors that the Salvadoran Foundation for Economic and Social Development (Fusades) identifies as a major cause of the loss of confidence of foreign investors in El Salvador.
The Attorney General Prosecutor's Office has announced that the government and the Italian company Enel Green Power have reached an agreement to end the conflict over the ownership structure of LaGeo.
From a statement issued by the Attorney General of the Republic of El Salvador (FGR):
Washington, DC The State of El Salvador and the Italian company ENEL Green Power have reached a framework agreement with a comprehensive solution to the existing dispute over the ownership structure of the company LAGEO SA de CV.
At the request of the parties, arbitration and dialogue has been suspended for 30 days in order to reach an agreement over the shareholding structure of the company LaGeo.
From a statement issued by the Government of El Salvador:
Talks to find solutions to disputes between the State of El Salvador and the Italian company ENEL Green Power, over the ownership structure of the company LAGEO SA, de CV, started today in Washington, DC, with a meeting taking place on the premises of the International Centre for Settlement of Investment Disputes (ICSID), which is the forum for arbitration and conciliation of the World Bank Group.
Both countries have already submitted formal documents in which Costa Rica denounces the non-application of tariff preferences on juices and tires exported to El Salvador under the CAFTA agreement.
Now that the formal documents have been presented, representatives from the governments of Costa Rica and El Salvador will await resolutions and new dates to proceed with the arbitration.
español
7974
