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Energy Charter Treaty discussed at the Latin America Investment Arbitration Congress

The Energy Charter Secretariat was invited to speak at the I Congreso de Arbitraje de Inversión en Iberoamérica organised by the Arbitration Court of the Madrid Chamber of Commerce on 19 April 2013 in Madrid. The Congress, opened by the Spanish Minister of Foreign Affairs, Mr. José Manuel García-Margallo, gathered high-level experts on international arbitration and prominent law firms specialised in international investments and trade. Minister García-Margallo emphasised the importance of suitable arbitration mechanisms to meet the needs of both multinational firms and small and medium enterprises.

The Secretariat was represented at the Congress by the trade expert Mr. Ernesto Bonafé. In his presentation Mr. Bonafé underlined that the Energy Charter Treaty was a unique legally binding multilateral agreement for cooperation in the energy sector. Its membership is open to all countries interested in a level playing field in international energy relations, including Latin American countries, where the Energy Charter Treaty has a lot to offer to governments and industry. Adherence to Energy Charter principles would contribute to the stability and attractiveness of the region's energy sector for investors; availability of common rules would benefit cross-border energy trade and energy market efficiency and would improve international cooperation in the energy field.

The Energy Charter Treaty was the focus of one of the five Congress panels. Other topics included the importance of choosing the appropriate jurisdiction forum for arbitration proceedings, such as the International Centre for Settlement of Investment Disputes (ICSID) or the United Nations Commission on International Trade Law (UNCITRAL). Two panels addressed the experience of Spanish companies in Latin America and the future of investor-state arbitration in that region. Additionally, there were presentations on the European Union's approach to foreign direct investments.

The Energy Charter Secretariat welcomes initiatives, which put forward the principles and rules of the Energy Charter Treaty as a minimum standard system for global energy governance. Both the Madrid Chamber of Commerce and the Energy Charter Secretariat expressed their interest in following further developments aimed at strengthening international cooperation and legal certainty in Latin America.