The ICSID agreed to study the lawsuit initiated by the Chilean Neltume Ports for “losses and damages” as a result of the agreement between the government and Katoen Natie.
He International Center for Settlement of Investment Disputes (ICSID) of the world Bank agreed to study the demand for Montecon against Uruguay for “losses and damages” due to “anti-competitive practices” in the Port of Montevideofollowing the agreement between the government and Katoen Natie in 2021.
The news was confirmed through a statement by the shareholders of the company that owns Montecon, the Chilean Neltume Ports, that in January of this year they had requested the instance of international arbitration and a compensation of 600 million dollars. According to the plaintiffs, “the action is based on the fact that the Uruguayan State violated the investment protection treaties signed with Chili and Canada”, where the company’s largest capital comes from.
The bone of contention was the extension of the 80-year concession that the government granted to Katoen Natie through Cuenca del Plata Terminal (TCP), of which the Belgian company is the majority shareholder. Starting from this, Uruguay adopted “a series of measures that prevent Montecon from transferring and storing containers in the public docks of the Port of Montevideo” not knowing “the free competition legal regime applicable to these activities,” according to the Chilean and Canadian shareholders of the companies Overseas and Atco, respectively—in the lawsuit.
Now, after accepting the request for international arbitration, the ICSID will begin studying the case before deciding whether the Uruguayan State must pay the 600 million dollars demanded in compensation for “losses and damages” to Montecon.
“From this decision of the ICSID, will correspond to the composition of the Arbitration Court, the definition of the procedure and the beginning of the trial itself”, reported the shareholders who also clarified that they resorted to international bodies to resolve the conflict “after the unsuccessful closing of a period of consultations and direct negotiations to reach a friendly solution” with the government.
On the other hand, they also reported that they began “a second request before him ICSID, in which they denounce the violation of the principles of the treaty of investment protection that Uruguay signed with Canada”, for a total of 240 million dollars.
Tranquility prevails in the government
Despite this news and the long-standing conflict with Montecon, there is no nervousness in the government about facing an instance of international litigation. The defense strategy of Uruguay It will be with the “team of lawyers that has in USA” and “very calmly,” as Presidency sources confirmed to El País.
On the one hand, because for the government, Montecon’s shareholders “are not right”, while the legal arguments used for the agreement with Katoen Natie are solid and they are “very, very calm” that they will win the trial. On the other hand, because the Uruguayan State has already won important international lawsuits, with the example of the lawsuit initiated by the tobacco company. Philip Morris before him ICSID as one of the most resonant.
Source: Ambito
