The denunciation of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“the ICSID Convention”) by Venezuela poses many questions for, and undoubtedly has an impact on, the international investment arbitration community. The January 24, 2012 denunciation by the Latin American oil giant was the third in the history of the International Centre for the Settlement of Investment Disputes (“ICSID”), preceded by Ecuador in 2009 and Bolivia in 2007. This recent string of departures, as well as a pattern of ICSID awards against Latin American countries, has uncovered displeasure with ICSID and raised questions about the fairness of the institution. Additionally, pending ICSID cases involving Ecuador, Bolivia, and now Venezuela suggest that denunciation does little to address the institution’s decisions toward Latin American countries. Instead, ICSID’s jurisdiction over investment disputes remains in effect through an elaborate web of bilateral investment treaties, State-level legislation, and investment instruments.
Kathryn Rimpfel, Treaty Shopping and Expansive Jurisdiction: Causes and Effects of Venezuela's Denunciation of the ICSID Convention, 5 Y.B. Arb. & Mediation 371 (2013).