WilmerHale’s Claudio Salas and Maria Camila Hoyos published an article in Monteávila University Center for Research and Studies in Dispute Resolution (CRIEC) journal Principia on the legal and practical consequences of Venezuela’s denunciation and withdrawal from the ICSID Convention in its upcoming 10th anniversary.
Excerpt: This article discusses the legal and practical consequences of Venezuela’s denunciation and withdrawal from the ICSID Convention. Almost ten years have passed since Venezuela gave notice of its withdrawal from the ICSID Convention and a series of contradictory decisions have since been issued by tribunals trying to resolve the question of when state consent to ICSID jurisdiction is effectively withdrawn. To determine the legal consequences of Venezuela’s denunciation, the authors discuss the different approaches taken by tribunals during the last decade. The authors then assess the practical consequences of the denunciation, including the alternatives available to investors afterwards and whether Venezuela accomplished the political goals underlying its denunciation. This paper concludes that Venezuela’s ICSID denunciation was more sound and fury than a step with serious legal and practical consequences.