Ecuador
Latin Arbitration Law Country Profile
Arbitration Law
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Arbitration and Mediation Law (4 Sept. 1997) Organic Code for Production, Trade and Investment (29 Dec. 2010) |
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2008 Political Constitution of the Republic of Ecuador (Articles 120, 190, 418, 422, 436, 438) 1998 Political Constitution of the Republic of Ecuador (Article 191, 271) |
International Conventions
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|
Signed |
Entered into force |
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17 Dec. 1958 |
03 Apr. 1962 [1] |
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30 Jan. 1975 |
22 Nov. 1991 [2] |
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08 May 1979 |
01 July 1982 [3] |
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15 Jan. 1986 |
Not in force (denounced) [4] |
Investment Protection Treaties
- Investment treaties marked in gray may have been terminated or be subject to termination proceedings (such as by Ecuador pursuant to its letters dated Oct. 6, 2008 published in Ecuadorean Official Register No. 452 on Oct. 23, 2008 or by review of the Citizen's Audit Commission established on May 6, 2013). Please click here for more information. Such treaties nevertheless may contain survival provisions.
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Bilateral Investment Treaties |
Signed |
Entered into force |
Dispute Resolution Fora |
|
Argentina [5] (Sp.) |
18 Feb. 1994 |
1 Dec. 1995 |
|
|
Bolivia [6] (Sp.) |
25 May. 1995 |
15 Aug. 1997 |
|
|
29 Apr. 1996 |
6 June 1997 |
|
|
|
Chile [8] (Sp.) |
27 Oct. 1993 |
2 Jan. 1996 |
|
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China [9] (Sp.) |
21 Mar. 1994 |
1 July 1997 |
|
|
Costa Rica (Sp.) |
6 Dec. 2001 |
Not in force |
|
|
Cuba [10] (Sp.) |
6 May 1997 |
1 June 1998 (Terminated) |
|
|
Dominican Republic [11] (Sp.) |
26 June 1998 |
4 Nov. 2006 (Terminated) |
|
|
Egypt [12] |
19 Apr. 1992 |
Not in force |
|
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El Salvador [13] (Sp.) |
16 May 1994 |
14 Jan. 1995 (Terminated) |
|
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Finland [14] (En.) |
18 Apr. 2001 |
16 Dec. 2001 (Terminated) |
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France [15] (Fr.) |
7 Sept. 1994 |
10 June 1996 |
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21 Mar. 1996 |
12 Feb. 1999 |
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|
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Guatemala [17] (Sp.) |
14 Aug. 2002 |
25 May 2005 (Terminated) |
|
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Honduras [18] (Sp.) |
26 June 2000 |
24 Dec. 2006 (Terminated) |
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Italy [19] |
25 Oct. 2001 |
26 May 2005 |
|
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Netherlands [20] (En.) |
27 June 1999 |
1 July 2001 |
|
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Nicaragua [21] (Sp.) |
2 June 2000 |
9 Sept. 2002 (Terminated) |
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Paraguay [22] (Sp.) |
28 Jan. 1994 |
18 Sept. 1995 (Terminated) |
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Peru (Sp.) |
7 Apr. 1999 |
10 Dec. 1999 |
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Romania [23] (Sp.) |
21 Mar. 1996 |
18 July 1997 (Terminated) |
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Russian Federation [24] |
25 Apr. 1996 |
Not in force |
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Spain (Sp.) [25] |
29 June 1996 |
18 June 1997 |
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|
31 May 2001 |
1 Mar. 2002 |
|
|
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Switzerland [27] (Fr.) |
2 May 1968 |
11 Nov. 1969 |
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United Kingdom [28] (En.) |
10 May 1994 |
24 Aug. 1995 |
|
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27 Aug. 1993 |
11 May 1997 |
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|
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Uruguay [30] (Sp.) |
31 July 1985 |
31 July 1985 (Terminated) |
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Venezuela (Sp.) |
18 Nov. 1993 |
1 Feb. 1995 |
|
|
Free Trade Associations [31] |
Signed |
Entered into force |
|
|
0 |
0 |
|
Total |
0 |
0 |
|
Other Multilateral Associations |
Signed |
Entered into force |
|
Complementary Agreement 59 MERCOSUR – Andean Community [32] (Sp.) |
18 Oct. 2004 |
1 Apr. 2005 [33] 19 Apr. 2005 [34] |
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Complementary Agreement 56 MERCOSUR – Andean Community (Sp.) |
6 Dec. 2002 |
N/A |
|
World Trade Organization |
|
21 Jan. 1996 |
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26 May 1969 |
3 Jun. 1997 |
|
|
Total |
4 |
3 |
Arbitration Cases
|
ICSID Cases |
Decisions and Awards |
Date [35] |
|
IBM World Trade Corp. v. Republic of Ecuador (Case No. ARB/02/10) |
Concluded
Decision on Jurisdiction (Sp.)
Dissenting Opinion on Jurisdiction (Sp.)
Award embodying parties’ settlement (Sp.)
|
22 Dec. 2003
22 July 2004
|
|
Repsol YPF Ecuador S.A. v. Empresa Estatal Petroleos del Ecuador (Petroecuador) (Case No. ARB/01/10) |
Concluded
Decision on Competence (Sp.)
Award (Sp.)
Decision on the Application for Annulment (En.) (Sp.)
|
23 Jan. 2003
20 Feb. 2004
8 Jan. 2007 |
|
M.C.I. Power Group, L.C. and New Turbine, Inc. v. Republic of Ecuador (Case No. ARB/03/6) |
Concluded
Decision on Annulment (En.) (Sp.)
|
31 July 2007
19 Oct. 2009 |
|
Duke Energy Electroquil Partners and Electroquil S.A. v. Republic of Ecuador (Case No. ARB/04/19) |
Concluded
|
18 Aug. 2008 |
|
Empresa Eléctrica del Ecuador, Inc. (EMELEC) v. Republic of Ecuador (Case No. ARB/05/9) |
Concluded
Award (Sp.)
|
2 June 2009 |
|
Noble Energy Inc. and Machala Power Cía. Ltd. v. Republic of Ecuador and Consejo Nacional de Electricidad (Case No. ARB/05/12) |
Concluded
Settlement agreed by the parties and proceeding discontinued.
|
20 May 2009 |
|
Occidental Petroleum Corporation and Occidental Exploration and Production Company v. Republic of Ecuador (Case No. ARB/06/11) |
Pending
Decision on Jurisdiction (En.) (Sp.)
|
9 Sept. 2008
5 Oct. 2012 |
|
Técnicas Reunidas, S.A. and Eurocontrol, S.A. v. Republic of Ecuador (Case No. ARB/06/17) |
Concluded
Settlement agreed by the parties and proceeding discontinued
|
13 May 2008 |
|
City Oriente Limited v. Republic of Ecuador and Empresa Estatal Petróleos del Ecuador (Petroecuador) (Case No. ARB/06/21) |
Concluded
Settlement agreed by the parties and proceeding discontinued.
|
12 Sep. 2008 |
|
Murphy Exploration and Production Company International v. Republic of Ecuador (Case No. ARB/08/4) |
Concluded
|
15 Dec. 2010
|
|
Burlington Resources, Inc. and others v. Republic of Ecuador and Empresa Estatal Petróleos del Ecuador (Petroecuador) (Case No. ARB/08/5) |
Pending
Decision on Jurisdiction (En.) (Sp.)
|
2 June 2010 |
|
Perenco Ecuador Limited v. Republic of Ecuador and Empresa Estatal Petróleos del Ecuador (Petroecuador) (Case No. ARB/08/6) |
Pending
Decision on Provisional Measures (Eng.), (Sp.)
The Claimant files a rejoinder on jurisdiction.
Decision on Jurisdiction (En.) (Sp.)
|
8 May 2009
January 15, 2010 30 June 2011 |
|
Repsol YPF Ecuador, S.A. et al v. Republic of Ecuador (Case No. ARB/08/10) |
Concluded
Order of Discontinuance (Sp.)
|
9 Feb. 2011 |
|
Corporación Quiport S.A. and others v. Republic of Ecuador (Case No. ARB/09/23) |
Concluded
Order of Discontinuance (En.) (Sp.)
|
11 Nov. 2011
|
|
Total Cases |
14 |
|
|
Pending |
3 |
|
|
Concluded |
11 |
|
|
Other Int’l Arb. Cases |
Decisions and Awards |
Date of Decision |
|
Hidropastaza v. Brazilian National Development Bank, BNDES (ICC) |
Concluded
Press release (Por.)
|
Jan. 2011 |
|
Ulysseas (USA) v. The Republic of Ecuador (UNCITRAL) (PCA) |
Concluded
|
2009 |
|
Occidental Exploration and Production Company v. The Republic of Ecuador (UNCITRAL) (LCIA Case No. UN3467) |
Concluded
Award (En.)
|
1 July 2004 |
|
EnCana Corporation v. Republic of Ecuador (UNCITRAL) (LCIA Case No. UN 3481) |
Concluded
Partial Award on Jurisdiction (En.) (Sp.)
Partial Dissenting Opinion (En.) (Sp.)
|
27 Feb. 2004
3 Feb. 2006
3 Feb. 2006 |
|
Chevron Corporation and Texaco Petroleum Corporation v. Ecuador (UNCITRAL) (PCA Case No. 2007-2) |
Concluded
Interim Award (En.)
Final Award (En.)
|
1 Dec. 2008
31 Aug. 2012 |
|
Chevron Corporation. and Texaco Petroleum Corporation v. Ecuador (UNCITRAL) (PCA Case No. 2009-23) |
Pending
First Interim Award on Interim Measures (En.)
Second Interim Award on Interim Measures (En.)
Third Interim Award on Jurisdiction and Admissibility (Eng.)
Fourth Interim Award on Interim Measures (Eng.)
First Partial Award on Track I (Eng.)
|
25 Jan. 2012
16 Feb. 2012
27 Feb. 2012
7 Feb. 2013
17 Sept. 2013 |
|
Merck v. Ecuador (UNCITRAL) (PCA Case No. 2012-10) |
Pending [36]
|
|
|
Copper Mesa v. República del Ecuador (PCA Case No. 2012-02) |
Pending
Awaiting Award [37]
|
|
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Únete Telecomunicaciones S.A. and Clay Pacific S.R.L., v. the Republic of Ecuador, (2009), UNCITRAL Ad hoc arbitration |
Proceeding suspended on agreement by the parties. [38]
|
|
|
Murphy Exploration & Production Company – International v. Republic of Ecuador, UNCITRAL, PCA Case No. AA434 |
Pending
Decision on Jurisdiction (Not public)
|
13 Nov. 2013 |
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ECUADOR TLC, Cayman International and Teikoku Oil Ecuador v. Republic of Ecuador, Secretaría de Hidrocarburos and EP Petroecuador |
Pending [39]
|
|
|
Key Court Decisions and Awards |
Tribunal |
Date [40] |
|
DINEAGRO'S Corporación Agroindustrial S.A. v. GRUPEXPORT Compañía de Comercio Cía. Ltda., 379-2006 |
Supreme Court |
30 Oct. 2006 |
|
Makro S.A. v. Fodeva S.A. |
Supreme Court |
24 May 2006 |
|
Faisal Misle Zaidam v. Supreme Court, Second Chamber and others |
Constitutional Court |
24 Feb. 2010 |
|
Legal Advisor of the President of the Republic v. Inter-American Development Bank |
Constitutional Court |
13 Mar. 2009 |
|
Maria Aguinda v. Chevron Corporation, Case No. 2011-0106 |
Provincial Court of Sucumbios |
17 Feb. 2012 |
|
SEWI S.A. v Arbitral Tribunal (Wright, Alvarez, Morán) |
Provincial Court of Guayas |
30 May 2011 |
|
Daewoo Electronics America Inc. v. Expocarga S.A. |
Juzgado Octavo de lo Civil, Guayaquil |
25 May 2009 |
|
Jenesa S.A v. Trans-Estiba, Laudo Arb. 08-2008 |
Corte Provincial del Guayas |
10 Feb. 2009 |
Cases Per Year
|
|
ICC [41] |
ICSID [42] Registered Concluded |
|
|
2000 |
4 |
0 |
0 |
|
2001 |
1 |
1 |
0 |
|
2002 |
0 |
1 |
0 |
|
2003 |
0 |
1 |
0 |
|
2004 |
0 |
1 |
1 |
|
2005 |
1 |
2 |
0 |
|
2006 |
1 |
3 |
0 |
|
2007 |
3 |
0 |
1 |
|
2008 |
2 |
4 |
3 |
|
2009 |
1 |
1 |
3 |
|
2010 |
1 |
0 |
1 |
|
2011 |
0 |
0 |
2 |
|
2012 |
7 |
0 |
0 |
|
2013 |
Not yet published |
0 |
0 |
|
2014 |
Not yet published |
0 |
0 |
Appointed Arbitrators to ICSID and ICC
|
ICSID |
ICC [43] |
|
Alejandro Ponce Martinez |
Eduardo Carmignani |
|
Alberto Wray Espinosa |
José Maria Perez (alternate) |
|
Eduardo Carmigniani Valencia |
|
|
Rodrigo Jijon Letort |
|
|
Leoro Franco |
|
|
León Roldos Aguilera |
|
Arbitral Institutions
|
Quito Chamber of Commerce (Cámara de Comercio de Quito) |
|
Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana) |
|
International Arbitration and Mediation Center (Centro Internacional de Arbitraje y Mediación) (CIAM) |
|
Construction Industry Chamber (Cámara de la Industria Construcción) |
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Guayaquil Chamber of Commerce - Arbitration and Conciliation Center (Cámara de Comercio de Guayaquil – Centro de Arbitraje y Conciliación) |
|
Cuenca Chamber of Commerce (Cámara de Comercio de Cuenca) |
|
Manta Chamber of Commerce (Cámara de Comercio de Manta) |
Publications on International Arbitration
|
“Revista Ecuatoriana de Arbitraje” Volumen 1. Instituto Ecuatoriano de Arbitraje. Editora Jurídica Cevallos. Quito – Ecuador. 2009. |
Bibliography
|
1. Books |
|
Jonathan C. Hamilton, Omar E. Garcia-Bolivar, & Hernando Otero, eds., Latin American Investment Protections, 2012. Ecuador Chapter (excerpt) |
|
Salcedo, Ernesto, El Arbitraje. La Justicia Alternativa. 2da edición. Distrilib Editorial 2007. Ecuador. |
|
Bertini, Leonello, Acción de nulidad de laudos arbitrales: procedimiento y trámite de resolución. Editorial El Conejo. Quito, 2008. |
|
2. Articles |
|
Marchan, Juan Manuel, “El arbitraje comercial internacional en Ecuador: marco legal y jurisprudencial”, tomado de El Arbitraje Comercial en Iberoamérica. Editorial La Ley, grupo Wolters Kluwer. Cuatrecasas, Goncalvez Pereira. Madrid - España. 2009. |
|
Marchan, Juan Manuel, “El tratamiento del arbitraje en la nueva Constitución ecuatoriana”, tomado de Revista del Club Español e Arbitraje. Wolters Kluwer España, 2008. |
[1] Status, Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958), http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention_status.html.
[2] According to Article 10 of the Panama Convention, “[f]or each State ratifying … the Convention after the [Convention’s entry into force,] the Convention shall enter into force on the thirtieth day after deposit by such State of its instrument of ratification.” Ecuador deposited its instrument of ratification on October 23, 1991 (Information available http://www.oas.org/juridico/english/sigs/b-35.html, last visited on June 23, 2014).
[3] According to Article 11 of the Montevideo Convention, “[f]or each State ratifying … the Convention after the [Convention’s entry into force,] the Convention shall enter into force on the thirtieth day after deposit by such State of its instrument of ratification.” Ecuador deposited its instrument of ratification on June 1, 1982. (Information available at http://www.oas.org/juridico/english/sigs/b-41.html, last visited on July 31, 2014).
[4] On July 6, 2009, the World Bank received a written notice of Ecuador denunciation of the ICSID Convention. In accordance with Article 71 of the Convention, the denunciation took effect six months later, i.e., on January 7, 2010. See List Of Contracting States And Other Signatories Of The ICSID Convention, May 20, 2013, available at https://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDDocRH&actionVal=ShowDocument&language=English.
[5] On February 15, 2013, the Constitutional Court held that the BIT was unconstitutional. The National Assembly has yet to approve the termination of the BIT.
[6] Ecuador has initiated legal proceedings to terminate the BIT. The Constitutional Court ruling is pending.
[7] On October 7, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly has yet to approve the termination of the BIT.
[8] The National Assembly did not approve the Commission’s report regarding the denunciation of the BIT.
[9] The National Assembly did not approve the Commission’s report regarding the denunciation of the BIT.
[10] The BIT was terminated in 2008.
[11] The BIT was terminated in 2008.
[12] Text not available. The BIT is not in force.
[13] The BIT was terminated in 2008.
[14] On July 29, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly approved the termination of the BIT on November 23, 2010.
[15] On September 16, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly approved the termination of the BIT on March 15, 2011. The Executive Decree denouncing the BIT has not been issued yet.
[16] On June 24, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly approved the termination of the BIT on September 14, 2010. The Executive Decree denouncing the BIT has not been issued yet.
[17] Full text not available. The BIT was terminated in 2008. Survival provisions may apply.
[18] Full text not available. The BIT was terminated in 2008. Survival provisions may apply.
[19] Full text not available. The President has not yet requested the National Assembly’s approval for its denunciation.
[20] The National Assembly did not approve the Commission’s report regarding the denunciation of the BIT.
[21] The BIT was terminated in 2008.
[22] The BIT was terminated in 2008.
[23] The BIT was terminated in 2008.
[24] Full text not available.
[25] Ecuador has initiated legal proceedings to terminate the BIT. The National Assembly has yet to approve the termination of the BIT.
[26] On September 16, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly approved the termination of the BIT on March 15, 2011. The Executive Decree denouncing the BIT has not been issued yet.
[27] On November 11, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly has yet to approve the termination of the BIT.
[28] On June 24, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly approved the termination of the BIT on September 14, 2010. The Executive Decree denouncing the BIT has not been issued yet.
[29] On November 25, 2010, the Constitutional Court held that the BIT was unconstitutional. The National Assembly has yet to approve the termination of the BIT.
[30] Full text not available. The BIT was terminated in 2008.
[31] Sources: OAS – SICE Foreign Trade Information System, available at http://www.sice.oas.org/ctyindex/ECU/ECUagreements_e.asp, last visited: 23 June, 2014.
[32] Economic Complementation Agreement No 59 among MERCOSUR and Colombia, Ecuador, and Venezuela.
[33] This Agreement entered into force for Ecuador, Argentina, Brazil and Paraguay on April 1, 2005.
[34] This Agreement entered into force for Ecuador, Colombia, Paraguay, and Venezuela on April 19, 2005.
[35] Date the decision or award was rendered.
[36] See Procuraduría General del Estado, República del Ecuador, Procesos Internacionales Activos, at 28-29, available at http://www.pge.gob.ec/es/documentos/doc_download/645-cuadro-de-casos-internacional.html.
[37] See Procuraduría General del Estado, República del Ecuador, Procesos Internacionales Activos, at p. 24-25, available at http://www.pge.gob.ec/es/documentos/doc_download/645-cuadro-de-casos-internacional.html.
[38] The proceeding was suspended by agreement of the parties, according to public information released by the Office of the Attorney General.
[39] See Procuraduría General del Estado, República del Ecuador, Procesos Internacionales Activos, at 38, available at http://www.pge.gob.ec/es/documentos/doc_download/645-cuadro-de-casos-internacional.html.
[40] Date the decision was rendered.
[41] No. of Parties from Ecuador involved in Arbitration cases under ICC Rules.
[42] No. of cases registered by the ICSID Secretariat with Ecuador as Respondent State.
[43] http://www.iccwbo.org/About-ICC/Organization/Dispute-Resolution-Services/ICC-International-Court-of-Arbitration/List-of-Current-Court-Members/. The members of the ICC International Court of Arbitration are appointed for three year terms.
