* This text was reproduced and reformatted from the text appearing at the United Nations website (last visited May 18, 2007) >http://www.un.org/Docs/sc>

1 See Letter from David Choquehuanca Cespedes, Bolivia's Foreign Ministry, to Paul Wolfowitz, World Bank's President (May 1, 2007), available at <http://www.rree.gov.bo/notasprensa/2007/2007_mayo/npl.htm>); See also Bolivia Submits a Notice under Article 71 of the ICSID Convention, ICSID News Release (May 16, 2007) available at <http://www.worldbank.org/icsid/highlights/05-16-07.htm.>

2 The World Bank is the depositary of the Convention under Art.73 of the ICSID Convention.

3 ICSID Convention Art. 71.

4 ICSID Convention Art.72. (Emphasis added).

5 ICSID Convention Art. 25(1).

6 See List of Contracting States and other Signatories of the Convention, available at <http://www.worldbank.org/icsid/constate/c-states-en.htm>.

7 Id.

8 See Aguas del Tunari S.A. v. Republic of Bolivia, ICSID Case No. ARB/02/3, Decision on the Respondent's Objections to Jurisdiction (the parties settled after the Tribunal concluded that the dispute was within the jurisdiction of the Centre. The proceeding was discontinued on March 28, 2006), available at http://www.worldbank.org/icsid/cases/conclude.htm.

9 See Quimica e Industrial del Borax Ltda. and others v. Republic of Bolivia (ICSID Case No. ARB/06/2) (registered on February 6, 2006), available at <http://www.worldbank.org/icsid/cases/pending.htm>; E.T.I. Euro Telecom International N.V. v. Republic of Bolivia (ICSID Case No. ARB/07/28) (registered on October 31, 2007), available at <http://www.worldbank.org/icsid/cases/pending.htm>.

10 Glencore, a Swiss commodity trader, reportedly initiated consultations with Bolivia on February 2007, under the Swiss- Bolivia BIT after one of its plants was seized earlier this year. See Glencore y Bolivia tienen doce meses para encontrar una solucion pactada, Los Tiempos.com, Feb. 15, 2007, available at <http://www.lostiempos.com/noticias/15-02-07/15_02_07_ultimas_eco2.php>. See also Swiss-Bolivia BIT Art. 9 (providing a consultation period of 12 months before submitting dispute to arbitration).

11 See generally, CHRISTOPH H. SCHREUER, THE ICSID CONVENTION: A COMMENTARY 1284 (2001) [hereinafter Schreuer, Commentary]; Christian Leathley, Bolivia's Withdrawal from ICSID, 2:3 Global Arbitration Review 13 (2007) [hereinafter Leathley, Withdrawal]; Alejandro Escobar, Bolivia Exposes Critical Date Ambiguity, 2:3 Global Arbitration Review 17 (2007) [hereinafter Escobar, Critical Date]; Emmanuel Gaillard, The Denunciation of the ICSID Convention, N.Y.L.J., June 26, 2007, 3,7-8. [hereinafter Gaillard, Denunciation]; Marco E. Schnabl & Julie Bedard, The Wrong Kind of 'Interesting,' The National Law Journal, July 30, 2007 [hereinafter Schnabl & Bedard]; Bolivia notifies World Bank of withdrawal from ICSID, pursues BIT revisions, Investment Treaty News, May 9, 2007 [hereinafter ITN News].

12 Schreuer, Commentary, supra note 11 at 284.

13 ICSID Convention Art. 25 (1) (emphasis added).

14 See Antonio R. Parra, ICSID and New Trends in International Dispute Settlement, 87 American Society of International Law Proceedings 2, 5 (1993). See also Jan Paulsson, Arbitration Without Privity, 10 ICSID Review-Foreign Investment Law Journal 232 (1995).

15 Bolivia has entered into BITs with Argentina, Austria, Belgium- Luxembourg, Chile, China, Cuba, Denmark, Ecuador, France, Germany, Italy, Netherlands, Spain, Paraguay, Peru, Rumania, South Korea, Sweden, Switzerland, U.K. and the U.S. All of these BITs, with the exception'of China, Cuba and Sweden, provide for ICSID jurisdiction. Bolivia also signed an FTA with Mexico that provides for ICSID jurisdiction in Art. 15-21. For a list of the publicly available BITs entered into by Bolivia see <http://www.sice.oas.org/ctyindex/BOL/BOLBITs_e.asp>.

16 See e.g., Bolivia-US BIT Art. IX; Bolivia-Chile BIT Art. X, Bolivia-Mexico FTA Art. 15-21.

17 See Bolivia-US BIT, Art. IX. ("Each Party hereby consents to the submission of any investment dispute for settlement by binding arbitration in accordance with the choice of the national or company.. . this consent.. .shall satisfy the requirement of Chapter II of the ICSID Convention... for written consent...").

18 Gaillard, Denunciation, supra note 11 at 8.

19 See Bolivia-Peru BIT Art. XI (3)("La controversia podra ser sometida a un tribunal arbitral international.. .(b)cuando ambas partes en la controversia asi lo hayan convenido). See also Gaillard, Denunciation, supra note 11 at 8 (citing Art. 8 of the Bolivia-UK BIT).

20 Gaillard, Denunciation, supra note 11 at 8.

21 Id.

22 See Rule 2 of the Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings (providing that if both parties did not act on the same day, the date of consent is the date on which the second party acted). See also Schreuer, Commentary, supra note 11 at 207 (noting that the time of consent triggers a number of legal consequences, the most important of which is that consent becomes irrevocable)

23 For a list of the BITs signed by Bolivia see supra note 15.

24 Schreuer, Commentary, supra note 11 at 207.

25 See Schreuer, Commentary, supra note 11 at 253 ("The investor may accept the offer of consent simply by instituting proceedings before the Centre, but in doing so he runs the risk that the offer may be withdrawn at any time before then"). Professor Shreuer further notes that an investor may express its acceptance to ICSID jurisdiction in a variety of ways other than instituting proceedings, as long as it is in writing.

26 See Escobar, Critical Date supra note 11, at 17-18 (analyzing the three scenarios); Leathley, Withdrawal, supra note 11 at 14-15; Gaillard, Denunciation, supra note 11 at 3, 8.

27 See e.g., Quimica e Industrial del Borax Ltda. and others v. Republic of Bolivia (ICSID Case No. ARB/06/2) (registered on February 6, 2006), available at <http://www.worldbank.org/icsid/cases/pending.htm>

28 Schreuer, Commentary, supra note 11 at 1285. Professor Schreuer notes that "in order to benefit from the continued validity under Art. 72, consent must have been given before the denunciation of the Convention.. ."

29 ICSID Convention Art. 72 (emphasis added). See also Schreuer, Commentary, supra note 11 at 1285 (explaining that in the absence of Art. 25, a host State could have nullified a consent agreement at any time convenient to it by withdrawing from the Convention)

30 See ICSID Convention Art. 25(1).

31 But see Schreuer, Commentary, supra note 11 at 1286 ("The provision in Art. 71 that the denunciation of the Convention by a State party will take effect only six months after the notice has been given, does not afford an opportunity to perfect consent before the expiry of this time limit.")

32 Leathley, Withdrawal, supra note 11 at 14. See also Escobar, Critical Date supra note 11 at 18 (noting that this view is shared by Sebastien Manciaux).

33 See Schnabl & Bedard, supra note 11.

34 See e.g., ITN News, supra note 11 (quoting Fernando Mantilla- Serrano); Escobar, Critical Date supra note 11 at 17-18.

35 See e.g., Bolivia-US BIT Art. XVI ("For ten years from the date of termination, all other Articles shall continue to apply to covered investments established or acquired prior to the date of termination..."); Bolivia-Chile Art XI (providing a period of 15 years); Bolivia-UK Art. XIII (providing a period of 20 years).

36 But see Schnabl & Bedard, supra note 11 (arguing that this interpretation would seem to contradict Art. 25(1) because Bolivia ceases to be a "Contracting State" after Nov. 3). It would also appear to be inconsistent with the language in some of the BITs providing for ICSID jurisdiction when both "Contracting Parties" are parties to the Convention. See e.g., Bolivia-Peru Art. XI (4) (".. .las controversias entre las partes. . .seran sometidas a: Arbitraje internacional del Centro Internacional de Arreglo de Diferencias Relativas a Inversiones, .. .siempre que ambas Partes Contratantes sean parte de dicha Convention").

37 See ICSID Convention Art. 36 (3). See also Schreuer, Commentary, supra note 11 at 216.

38 In some BITs, not only the ICSID door would be closed, but international arbitration altogether because these treaties exclusively provide for ICSID jurisdiction (the only other alternative is domestic courts). See e.g., Bolivia-Chile BIT Art. 10; Bolivia-South Korea BIT Art.12.

39 This option will remain available only if the investor's state is a party to the ICSID.

40 See e.g., Bolivia's BITs with the US, UK, France, Spain, Argentina, Ecuador, Italy, Sweden, Uruguay.

41 See e.g., Bolivia-UK BIT (referring to the ICC Arbitration Rules); Bolivia-Belgium and Luxembourg BIT (referring to the Stockholm Chamber of Commerce Arbitration Rules).

42 On May 1, 2007, Bolivian President Evo Morales ordered the nationalization of Bolivia's oil and gas industry. See Decreto Supremo 28701 - D.S. 28701. (i.e. the nationalization decree). The government has also targeted the telecommunications and transportation sectors.

43 See Foreign Ministry Press Release, Cancilleria Oficializa la Salida de Bolivia del CIADI, May 3,2007, available at <http://www.rree.gov.bo/notasprensa/2007/2007_mayo/np1.htm> [hereinafter Foreign Ministry Press Release].

44 See Bolivia revisard y renegociard cada uno de los 24 tratados de protection a las inversiones extranjeras, Bol Press, May 9,2007, available at <http://www.bolpress.com/art.php?Cod=2007050902>; See also ITN News, supra note 11.

45 See Annual Statistics Report issued by the Economic Commission for Latin America and the Caribbean (CEPAL) for the year 2006.

46 See Foreign Ministry Press Release, supra note 40.

47 Gaillard, Denunciation, supra note 11 at 8.

48 For an overview of the investment climate in Bolivia, Ecuador, and Venezuela .see Schnabl & Bedard, supra note 11.

49 As members of the Alternativa Bolivariana para la America Latina y El Caribe (ALBA), Bolivia, Nicaragua, and Venezuela threatened to withdraw from the World Bank and the International Monetary Fund, and proposed instead to establish the "Bank of the South." See <http://www.alternativabolivariana.org> <http://www.iadb.org/intal/detalle_instrumento.asp?idioma=esp&cid=705&aid=1379>

50 See Ecuador announces that it wants out of US investment treaty, ITN News, May 9, 2007.

51 Ecuador reportedly wants oil and mining disputes barred from ICSID, Investment Treaty News, October 15, 2007. But .see Remarks by Xavier Garaicoa Ortiz, Procurador General del Estado de Ecuador, Washington, D.C. (Oct. 24, 2007) (rejecting this view as a rumor generated by the press).

52 These TPA's have not entered into force because they are still subject to U.S. Congressional approval. See <http://www.ustr.gov/Trade_Agreements/Bilateral/Section_Index.>