President of Ecuador ratifies the return of the country to ICSID

The President of the Republic, Guillermo Lasso, ratified the return of Ecuador to the «Agreement on the Settlement of Investment Disputes between States and Nationals of Other States of 1966» (ICSID), after twelve years.

The definitive return of the country to ICSID was carried out through Executive Decree 122 signed by the president on July 16, 2021.

This decision was ratified after the Constitutional Court ruled that the signing of this agreement «does not require legislative approval or a prior binding opinion of constitutionality»; so this opinion is final, according to the document.

The agreement signed on June 21 was generated after 12 years, when in 2009 the Ecuadorian State left ICSID, after a series of violations of constitutional rights.

Regarding this fact, experts such as the former candidate and economist Andrés Arauz have warned that the return to ICSID would accelerate the payment of USD 412 million in compensation to the Perenco oil company, constituted a tax haven, after the arbitration ruling against the Ecuadorian state.

Likewise, former President Rafael Correa spoke on his Twitter account and argued that this decision «openly contradicts the Constitution of the Republic.»

«When we begin to suffer the consequences of this new delivery of the Homeland, please do not forget its authors,» emphasized the ex-president.

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