Venezuela
Latin Arbitration Law Country Profile
Arbitration Law
|
Commercial Arbitration Act – 7 Apr. 1998 |
|
Investors are subject to specific legal frameworks [1] |
International Conventions
|
|
Signed |
Entered into force |
|
8 Feb. 1995 |
9 May 1995 [2] |
|
|
30 Jan. 1975 |
15 June 1985 [3] |
|
|
8 May 1979 |
30 Mar. 1985 [4] |
|
|
18 Aug. 1993 |
Denounced [5] |
Investment Protection Treaties
|
Bilateral Investment Treaties [6] [7] |
Signed |
Entered into force (UNCTAD/SICE) |
Dispute Resolution Fora |
|
Argentina (Sp.) |
16 Nov. 1993 |
1 July 1995 |
|
|
15 Jul. 1994 |
31 Oct. 1995 |
|
|
|
Belarus |
6 Dec. 2007 |
13 Aug. 2008 |
|
|
Belgium and Luxembourg [8] |
17 Mar. 1998 |
29 Apr. 2004 |
|
|
Bolivia (Sp.) [9] |
Not signed |
Not in force |
|
|
4 July 1995 |
Not in force |
|
|
|
1 July 1996 |
28 Jan. 1998 |
|
|
|
Chile (Sp.) |
2 Apr. 1993 |
25 May 1995 |
|
|
Costa Rica (Sp.) |
17 Mar. 1997 |
2 May 2001 |
|
|
Cuba |
11 Dec. 1996 |
15 Apr. 2004 |
|
|
Czech Republic (Eng.) |
27 Apr. 1995 |
23 July 1996 |
|
|
Denmark (Danish)(Eng.) |
28 Nov. 1994 |
19 Sept. 1996 |
|
|
Ecuador (Sp.) |
18 Nov. 1993 |
1 Feb. 1995 |
|
|
France (Fr.) |
2 July 2001 [10] |
30 Apr. 2004 |
|
|
Germany (Sp.)(Ger.) [11] |
14 May 1996 |
16 Oct. 1998 |
|
|
Indonesia [12] |
18 Dec. 2000 |
23 Mar. 2003 |
|
|
Iran, Islamic Republic of [13] |
11 Mar. 2005 |
7 June 2006 |
|
|
Italy (Sp.) |
4 June 1990 |
14 Sept. 1993 |
|
|
Lithuania (Eng.) |
24 Apr. 1995 |
1 Aug. 1996 |
|
|
Netherlands (Eng.) |
22 Oct. 1991 |
1 Nov. 1993 [14] TERMINATED |
|
|
Paraguay (Sp.) |
5 Sept. 1996 |
14 Nov. 1997 |
|
|
Peru (Sp.) |
12 Jan. 1996 |
18 Sept. 1997 |
|
|
Portugal (Por.) |
17 June 1994 |
7 Oct. 1995 |
|
|
Russian Federation (Sp.) [16] |
7 Nov. 2008 |
26 Nov. 2009 |
|
|
Spain (Sp.) |
2 Nov. 1995 |
10 Sept. 1997 |
|
|
Sweden (Swedish) (Sp.) |
25 Nov. 1996 |
5 Jan. 1998 |
|
|
Switzerland (Fr.) |
18 Nov. 1993 |
30 Nov. 1994 |
|
|
United Kingdom of Great Britain and Northern Ireland (Eng.) |
15 Mar. 1995 |
1 Aug. 1996 |
|
|
Uruguay (Sp.) |
20 May 1997 |
18 Jan. 2002 |
|
|
Vietnam (Sp.) [17] |
20 Nov. 2008 |
17 Jun. 2009 |
|
|
Total |
30 |
27 |
|
|
Free Trade Agreement [18] |
Signed |
Entered into force |
Withdrawn |
|
G3 – Venezuela, Colombia and Mexico (Sp.) [19] |
13 June 1994 |
1 Jan. 1995 |
19 Nov. 2006 |
|
Total |
1 |
0 |
1 |
|
Other relevant laws |
Published in |
|
The Free-Trade Zone Law [20] |
Gazette No. 34,772 of 1991 |
Arbitration Cases
|
ICSID Cases [28] |
Decisions and Awards |
Date [29] |
|
Fedax N.V. v. Venezuela, (Case No. ARB/96/3) |
Concluded
Award on Jurisdiction (Eng.)
Final Award (Eng.) |
11 Jul. 1997
9 Mar. 1998 |
|
GRAD Associates, P.A. v. Bolivarian Republic of Venezuela (Case No. ARB/00/3) |
Concluded
Order for the discontinuance of the proceeding
|
5 Feb. 2002 |
|
Autopista Concesionada de Venezuela, C.A. v. Bolivarian Republic of Venezuela (Case No. ARB/00/5) |
Concluded
Decision on Jurisdiction (Eng.) (Sp.)
|
27 Sep. 2001
23 Sep. 2003 |
|
Vannessa Ventures Ltd. v. Bolivarian Republic of Venezuela (Case No. ARB(AF)/04/6) |
Concluded
Decision on Jurisdiction (Eng.)
|
22 Aug. 2008
16 Jan. 2013 |
|
I&I Beheer B.V. v. Bolivarian Republic of Venezuela (Case No. ARB/05/4) |
Concluded
Proceeding was dismissed
|
28 Dec. 2007 |
|
Eni Dación B.V. v. Bolivarian Republic of Venezuela (Case No. ARB/07/4) |
Concluded
Parties reached a settlement
|
18 Apr. 2008 |
|
Brandes Investment Partners, LP v. Bolivarian Republic of Venezuela (Case No. ARB/08/3) |
Concluded
Decision on the Respondent’s Objection under Rule 41(5) of the ICSID Arbitration Rules, (Eng.) (Sp.)
Final Award (Eng.)
|
02 Feb. 2009
02 Aug. 2011 |
|
CEMEX Caracas Investments B.V. and CEMEX Caracas II Investment B.V. v. Bolivarian Republic of Venezuela (Case No. ARB/08/15) |
Concluded
Decision on Proposal for Disqualification of an Arbitrator,
Decision on Jurisdiction, (Eng.) (Sp.)
Tribunal discontinues the procedure pursuant to ICSID Rule 43(1)
|
06 Nov. 2009
30 Dec. 2010
15 Feb. 2012 |
|
Ternium S.A. and Consorcio Siderurgica Amazonia S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/19 |
Concluded
Proceedings discontinued pursuant to ICSID Arbitration Rule 44.
|
29 Nov. 2012 |
|
Nova Scotia Power Incorporated v. Bolivarian Republic of Venezuela ICSID Case No. ARB(AF)/11/1, |
Concluded
The Tribunal renders award
|
30 Apr. 2014 |
|
Opic Karimum Corporation v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/10/14) |
Concluded
Award of the Tribunal, (Eng.) (Sp.)
|
28 May 2013 |
|
Vestey Group Ltd v. Bolivarian Republic of Venezuela (Case No. ARB/06/4) |
Pending
Claimant files a rejoinder on jurisdiction
|
30 May 2014 |
|
Venezuela Holdings B.V. and others v. Bolivarian Republic of Venezuela (Case No. ARB/07/27) |
Pending
Decision on Jurisdiction English (Original)
Decision on Production of Documents; English (Original)
Each party files a reply post-hearing brief
|
10 June 2010
24 Mar. 2011
14 May 2012 |
|
ConocoPhillips Co. v. Bolivarian Republic of Venezuela (Case No. ARB/07/30) |
Pending
Tribunal decides on production of documents
|
23 June 2014 |
|
Holcim Limited, Holderfin B.V. and Caricement B.V. v. Bolivarian Republic of Venezuela (Case No. ARB/09/3) |
Pending
Parties filed a request for the discontinuance of the proceeding
|
10 Sept. 2010 |
|
Gold Reserve Inc. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/09/1) |
Pending
Each party files a statement of costs
|
26 May 2014 |
|
OI European Group B.V. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/25 |
Pending
Claimant filed a supplemental submission on costs
|
21 Feb. 2014 |
|
Highbury International AVV and Ramstein Trading Inc. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/1 |
Pending
Ad hoc Committee issues Procedural Order No. 1 concerning procedural matters in annulment proceeding.
|
28 May 2014 |
|
Tidewater Inc. and others v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/10/5 |
Pending
Decision on the Proposal for the Disqualification of a Member of the Arbitral Tribunal, (Eng.)
Decision on Jurisdiction
Respondent files a rejoinder on the merits
|
23 Dec. 2010
08 Feb. 2013
25 Apr. 2014
|
|
Crystallex International Corporation v. Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/11/2 |
Pending
Parties filed post-hearing briefs.
|
12 May 2014 |
|
Longreef Investments A.V.V. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/11/2 |
Pending
Tribunal issues decision on jurisdiction.
|
12 Feb. 2014 |
|
The Williams Companies, International Holdings B.V., WilPro Energy Services (El Furrial) Limited and WilPro Energy Services (Pigap II) Limited v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/10) |
Pending
Proceeding suspended by parties’ agreement
|
22 Mar. 2012 |
|
Koch Minerals Sàrl and Koch Nitrogen International Sàrl v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/19) |
Pending
Tribunal holds hearing on procedural matters
|
19 May 2014 |
|
Tenaris S.A. and Talta - Trading e Marketing Sociedade Unipessoal LDA v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/26) |
Pending
Tribunal held hearing on jurisdiction and merits.
|
31 Jan, 7 Feb 2014 |
|
Flughafen Zürich A.G. and Gestión e Ingenería IDC S.A. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/10/19 |
Pending
Respondent files a response to Claimant’s observations of 4 June 2014
|
5 June 2014 |
|
Universal Compression International Holdings, S.L.U. v. Bolivarian Republic of Venezuela ICSID Case No. ARB/10/9 |
Pending
Decision on the Proposal for the Disqualification of two members of the Arbitral Tribunal
Tribunal suspends the proceeding following agreement by the parties
|
20 May 2011
16 Sep. 2013 |
|
Hortensia Margarita Shortt v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/11/30 |
Pending
Constitution of the Tribunal is suspended until July 12, 2014
|
3 Apr. 2014 |
|
Gambrinus, Corp.v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/11/31 |
Pending
Tribunal holds hearing on jurisdiction, merits and quantum.
|
10-13 Mar. 2014 |
|
Saint-Gobain Performance Plastics Europe v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/13 |
Pending
Claimant filed a reply on the merits.
|
18 Jun. 2014 |
|
Valle Verde Sociedad Financiera S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/18 |
Pending
Claimant filed observations on the request to address the objections to jurisdiction as a preliminary question.
|
23 May 2014 |
|
Rusoro Mining Ltd. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB(AF)/12/5 |
Pending
Claimant filed reply on jurisdiction and the merits.
|
12 June 2014 |
|
Blue Bank International & Trust (Barbados) Ltd. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/20 |
Pending
The Tribunal issues Procedural Order No. 1 concerning procedural matters
|
25 Feb. 2014 |
|
Fábrica de Vidrios Los Andes, C.A. and Owens-Illinois de Venezuela, C.A. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/21 |
Pending
Respondent files a rejoinder on the merits and a reply on jurisdiction.
|
20 June 2014 |
|
Venoklim Holding B.V. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/22 |
Pending
Tribunal held hearing on jurisdiction
|
26-27 May 2014 |
|
Tenaris S.A. and Talta – Trading e Marketing Sociedade Unipessoal Lda. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/23 |
Pending
Claimant filed its counter-memorial on jurisdiction
|
16 June 2014 |
|
Transban Investments Corp. v. Boliviarian Republic of Venezuela, ICSID Case No. ARB/12/14 |
Pending
Chairman of the Administrative Council dismissed requests to disqualify arbitrators.
|
13 May 2014 |
|
Valores Mundiales, S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11 |
Pending
The Tribunal issues Procedural Order No. 1 concerning procedural matters
|
10 Feb. 2014 |
|
Anglo American PLC v. Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/14/1) |
Pending
Request for arbitration filed
|
10 Apr. 2014 |
|
Highbury International AVV, Compania Minera de Bajo de Caroni AVV, and Ramstein Trading Inc. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/14/10) |
Pending
Request for arbitration filed
|
19 May 2014 |
|
Total Cases |
40 |
|
|
Pending |
29 |
|
|
Concluded |
11 |
|
|
Other Int’l Arb. Cases |
Decisions and Awards |
Date |
|
Nova Scotia Power Inc. v. Bolivarian Republic of Venezuela, UNCITRAL |
Pending
Decision on Jurisdiction, (Spanish)
|
22 Apr. 2010 |
|
Costs Order, (Spanish)
|
30 Aug. 2010 |
|
Key Local Court Decisions |
Date [30] |
Tribunal |
|
C.A. Embotelladora Caracas (Venezuela) v. Pepsi-Cola Panamericana, S.A. (US/Venezuela) |
24 Jan. 1997 |
Second Court of First Instance in Civil, Mercantile and Transit Matters, Caracas |
|
Minera:Las Cristinas C.A.(Venezuela) v. Corporación Venezolana de Guayana (Venezuela) |
28 Oct. 2005 |
Tribunal Supremo de Justicia – Sala Constitucional |
|
Corporación Todosabor, C.A. (Venezuela) v. Haagen-Dazs Internacional Shoppe Company, Inc. |
14 Feb. 2006 |
Tribunal Supremo de Justicia – Sala Constitucional |
|
Elettronica Industriale S.P.A. (Italy) v. Venezolana de Televisión, C.A. (Venezuela) |
5 Apr. 2006 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Política-Administrativa [Political-Administrative Chamber] |
|
Tanning Research laboratorios, Inc. V. Hawaiian Tropic de Venezuela, C.A. |
7 Dec. 2006 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Política-Administrativa [Political-Administrative Chamber] |
|
Opinion 1541-09, Case N° 08-0763 (Interpretation of Article 258 of the Venezuelan Constitution) |
17 Oct. 2008 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Constitucional [Constitutional Chamber] |
|
Case N° 08-0306 |
11 Feb. 2009 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Constitucional [Constitutional Chamber] |
|
Case N° 2009-0188 |
21 May 2009 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Política-Administrativa [Political-Administrative Chamber] |
|
Astivenca Astilleros de Venezuela CA v. Oceanlink Offshore III AS AS Case N° 09-0573 |
3 Nov. 2010 |
Tribunal Supremo de Justicia [Supreme Court of Justice], Sala Constitucional [Constitutional Chamber] |
|
Total Cases |
9 |
|
Cases Per Year
|
|
AAA/ICDR [31] |
ICC [32] |
ICSID [33] Registered Concluded |
|
|
1996 |
N/A [34] |
N/A |
1 |
-- |
|
1997 |
N/A |
N/A |
-- |
-- |
|
1998 |
N/A |
N/A |
-- |
1 |
|
1999 |
N/A |
N/A |
-- |
-- |
|
2000 |
N/A |
9 |
2 |
|
|
2001 |
N/A |
3 |
-- |
-- |
|
2002 |
N/A |
10 |
-- |
1 |
|
2003 |
N/A |
17 |
-- |
1 |
|
2004 |
5 |
3 |
1 |
-- |
|
2005 |
1 |
4 |
1 |
-- |
|
2006 |
N/A |
2 |
1 |
-- |
|
2007 |
N/A |
2 |
3 |
1 |
|
2008 |
N/A |
2 |
2 |
1 |
|
2009 |
N/A |
3 |
2 |
-- |
|
2010 |
N/A |
1 |
4 |
-- |
|
2011 |
N/A |
N/A |
10 |
1 |
|
2012 |
N/A |
N/A |
9 |
2 |
|
2013 |
N/A |
N/A |
1 |
2 |
|
2014 |
N/A |
N/A |
2 |
1 |
Arbitral Institutions
[1] See the U.S. Department of State 2011 Investment Climate Statement http://www.state.gov/e/eb/rls/othr/ics/2011/157383.htm and the Venezuelan government websites http://venezuela-us.org/inversion-extranjera-en-la-republica-bolivariana-de-venezuela/ and http://www.mincomercio.gob.ve/index.php?option=com_content&view=article&id=118:superintendencia-de-inversiones-extranjeras-siex&
[2] According to Article XII 2) of the New York Convention, “[For each State ratifying or acceding to this Convention after the deposit of the third instrument of ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such State of its instrument of ratification or accession.” Venezuela deposited its instrument of ratification on 8 Feb., 1995 (information available at http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention_status.html , last visited on March 1, 2010).
[3] 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.” Venezuela deposited its instrument of ratification on May 16, 1985 (information available at http://www.sice.org/dispute/comarb/intl_conv/caicpae.asp).
[4] 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.” Venezuela deposited its instrument of ratification on February 28, 1985. (Information available at http://www.sice.org/dispute/comarb/intl_conv/caicmoe.asp).
[5] Venezuela submitted a notice of denunciation to the ICSID Convention on January 24th, 2012. In accordance with Article 71 of the ICSID Convention, the denunciation took effect on July 25th, 2012. See ICSID, List of Contracting States and Other Signatories of the Convention (as of April 11, 2014) available at (https://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDDocRH&actionVal=ShowDocument&language=English)
[6] Language abbreviations: English = Eng.; Spanish = Sp.; French = Fr.; Portuguese = Por.; German = Ger.
[7] Sources: UNCTAD – Country-specific lists of BITs, available at http://www.unctad.org/Templates/Page.asp?intItemID=2344&lang=1.
[8] Included only in UNCTAD, full text of treaty not available.
[9] This is only negotiating document with a draft BIT not yet signed.
[10] (UNCTAD) According to the official website of the Venezuelan Ministry of Foreign Affairs, the signature date July 2, 2002.
[11] Appears only in UNCTAD.
[12] Appears only in UNCTAD; full text not available.
[13] Appears only in UNCTAD, full text not available.
[14] According to Ministry of Foreign Affairs website, the BIT entered into force on 14 Sept. 1993.
[15] On April 30, 2008 Venezuela formally announced its intention to terminate the Netherlands-Venezuela BIT effective November 1, 2008. See http://www.iareporter.com/Archive/IAR-05-16-08.pdf. The treaty provides that it will continue to protect investments made prior to that date for a period of 15 years (Art. 14(3)).
[16] Full text available in Spanish in Gaceta Oficial de la República Bolivariana de Venezuela No. 39.191, dated June 2, 2009, available at http://www.tsj.gov.ve/gaceta/junio/020609/020609-39191-10.html
[17] Full text available in Spanish in Gaceta Oficial de la República Bolivariana de Venezuela No. 39.170, dated May 4, 2009. See http://www.pgr.gob.ve/Recursos/gaceta.asp.
[18] Source: OAS – SICE Foreign Trade Information System, available at http://www.sice.oas.org/agreements_e.asp, last visited: February 4, 2009.
[19] Venezuela formally announced its intent to withdraw from the G3 on May 31, 2006. The withdrawal became effective on November 19, 2006.
[20] Provides for free trade zones/free ports. A Free Zone is an area of land, with well-defined physical boundaries, that benefits from a special tax policy and is governed by the Venezuelan Free Zone Act. The three existing free trade zones are located in the Paraguana Peninsula, Atuja in the State of Zulia, and Merida (but only for cultural, scientific, and technological goods). Venezuela has two free ports that also enjoy exemptions from most tariff duties: Margarita Island (Nueva Esparta) and Santa Elena de Uairen in the state of Bolivar. Source: http://www.state.gov/e/eb/rls/othr/ics/2011/157383.htm
[21] The 153-member World Trade Organization (WTO) was created to replace GATT.
[22] Source: WTO, available at http://www.wto.org/spanish/thewto_s/countries_s/venezuela_s.htm
[23] On 1 January 1995, the WTO replaced GATT, which had been in existence since 1947, as the organization overseeing the multilateral trading system. The governments that had signed GATT were officially known as “GATT contracting parties”. Upon signing the new WTO agreements (which include the updated GATT, known as GATT 1994), they officially became known as “WTO members”. See http://www.wto.org/english/thewto_e/gattmem_e.htm
[24] ALADI, the Latin American Integration Association, consists of 12 nations: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. It was established on 12 August 1980 with the Treaty of Montevideo, which regulates its operations and general principles of the group. See http://www.aladi.org/nsfweb/sitio/index.htm
[25] Date Venezuela became part of the Cartagena Agreement. Source: http://www.comunidadandina.org/quienes/crono.htm
[26] Source: http://www.state.gov/e/eb/rls/othr/ics/2011/157383.htm
[27] The Mercosur treaties can be found at: http://www.mre.gov.py/dependencias/tratados/mercosur/registro%20mercosur/mercosurprincipal.htm
[28] Cases are presented in chronological order taking into consideration the registration number (Int’l arbitration cases) or the day of issuance (Court decisions).
[29] Date the decision or award was rendered.
[30] Date the decision was rendered.
[31] No. of cases administered by the International Center for Dispute Resolution of the AAA with a party from Venezuela.
[32] No. of Parties from Venezuela involved in Arbitration cases under ICC Rules.
[33] No. of cases registered by the ICSID Secretariat with Venezuela as Respondent State.
[34] No information available.
