Impacts of investment arbitration against Latin America and the Caribbean ISDS in Numbers

11 December 2017

How fair is the investment arbitration system in Latin American and Caribbean (LAC) countries? Are investor-state disputes balanced between national and corporate interests? LAC countries are among the most affected by the investment arbitration system, representing 28.6% of all known investor-state disputes around the world. In particular, Argentina, Venezuela, Mexico, Ecuador, Bolivia and Peru account for 77.3% of the total number of claims against LAC countries. Analysis shows that the system so far heavily favours corporate interests. Investors have won in 70% of the cases brought against LAC countries. As a result, LAC States have already had to pay foreign companies 20.6 billion USD, which could cover Bolivia’s budget for health and education for four whole years.

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Publication type: Report
Part of series: ISDS in Numbers

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Introduction

Investor–State Dispute Settlement (ISDS) has become a major issue in Latin America and the Caribbean over the past two decades. The number of arbitration claims filed by foreign investors against governments has increased significantly, affecting public budgets, policy decisions, and development strategies across the region.

Since the mid-1990s, hundreds of treaty-based disputes have been brought worldwide, and a substantial share of them have targeted countries in Latin America and the Caribbean. These cases are typically based on investment treaties or trade agreements that allow investors to challenge government actions before international arbitration tribunals.

The financial stakes are considerable. Governments not only face the risk of compensation awards that can reach billions of dollars, but they must also cover the high costs of legal defence and arbitration proceedings. Even when states win cases, the process itself can require significant public resources.

Beyond the financial impact, ISDS cases often involve key sectors such as mining, oil and gas, electricity, infrastructure, and public services. Many disputes arise from government policies intended to regulate markets, protect the environment, or respond to social needs, highlighting the complex relationship between investment protection and public policy.

This publication presents key facts and figures about investment arbitration in the region. It provides an accessible overview of trends, outcomes, costs, sectors involved, and the institutions and actors that shape the system, helping readers understand how ISDS works and why it matters.