On August 24, 2024, the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (known as the ICSID Convention) entered into force in Equatorial Guinea.
Background
Equatorial Guinea seeks to foster investment opportunities and provide legal certainty by joining the convention. According to a press release issued by the Equatoguinean government, “[t]he signing of this Agreement is part of the country’s development strategy and a manifestation of the will of the Government of Equatorial Guinea to continue promoting international investment with all the institutional, legal and juridical guarantees.”
The US Department of State observed in its 2024 Investment Climate Statement for Equatorial Guinea that the country does not have an arbitration center or specialized commercial courts. Commercial cases have been processed in general civil courts of first instance, in which the judicial process, according to the State Department, is “not considered procedurally competent, fair, or reliable.” The report noted, however, that the country planned to join the ICSID Convention as part of “its action plan for improving the national business climate.”
Key Features of the Convention
The ICSID Convention is a multilateral treaty administered by the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), which aims to promote the Bank’s goal of furthering international investment.
The objective of the ICSID process is to address the technical aspects of international investment disputes while maintaining a fair balance between the interests of host States and investors.
Investment disputes are reviewed by independent Arbitral Tribunals or Conciliation Commissions in view of evidence and legal arguments presented by the parties.
ICSID teams are assigned to each case to provide expert assistance during the dispute resolution process.
ICSID states that Convention membership “signals a State’s commitment to: (i) attract and retain foreign investment; (ii) impartial dispute settlement; and (iii) full implementation of investment treaty obligations.”
Gustavo Guerra, Law Library of Congress
November 27, 2024
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