Mexico has signed the Convention on the Settlement of Investment Disputes between States and National of other States, better known as the Washington Convention or theICSID Convention. This important development is expected to make Mexico considerably more attractive for foreign investors.
In contrast, the Venezuela National Constitutional Assembly, which was formed in mid-2017 – many say unconstitutionally and illegally – recently approved new restrictions on foreign investment.
The existence of neutral dispute resolution mechanisms between a foreign investor and a host state is an important condition in any international investment project. A prudent foreign investor exploring a possible investment always starts by confirming that a state adheres to certain multilateral investment treaties. The stark contrast between Mexico and Venezuela offers an interesting perspective for those seeking to invest in Latin America.
For more information please contact:
Partner, Mexico City
Christina P. Maccio
Foreign Legal Consultant, Houston
Harout Jack Samra