Ecuadorian IIA policy: a complex and dynamic process Dr. Gustavo Guerra B. This presentation does...

Ecuadorian IIA policy: a complex and dynamic process

Dr. Gustavo Guerra B.

This presentation does not reflect the official position of Ecuadorian government. It is a part of an interinstitutional work in progress.

Background and facts

….international trends Presidential Commission for Analysis of

International Treaties on Investment and Double Taxation (2003): 7 public entities + private representative.

New BIT model (2004 – 2009) Presidential decision: suspend any negotiation and

evaluate to denounce all or some treaties. (2007) Ecuador submitted a reservation to ICSID:

investment controversies on non renewable resources. (2008)

Ecuador denounced 9 BITS and announced renegotiations with the rest of treaty partners. (2008)

Regulatory reform

BITS do not works as substitute for institutional quality or economic conditions.

New constitutional frame:

Priority of national investment over foreign investment

New rules on sovereignty over strategic resources (mineral, oil) and special sectors (water, telecommunications)

International dispute resolution limitation: only regional forums.

Guidelines

• Systemic re approach to international policy: investment is a economic policy issue.

• Development dimension of investment (both national and FDI). To foster Productive investment

• Priority to linkages between economic integration and commercial relationship (first trade later investment flows)

• Pragmatic decision: economic evaluation of role of BITs (econometric mechanisms).

• Conclusion: A new strategic scheme.

Alternative approach

• Previous measure: national legal framework will offer protection and other guarantees to investment.

• Depending on each selected partner:• Economic Promotion Agreements• Trade Promotion Agreements: investment

chapter• Bilateral Investment PROMOTION Treaties• …a BIT

Themes of the proposal

Components: Market access (WTO rules), national

treatment to investors Administrative facilitation Transparency rules Promotion of national investment

incentives and other programs. Institutional cooperation framework:

bilateral investment commission.