Cms Gas Transmission Company vs. Government of Argentina

I. CMS Gas Transmission Company Vs. Government of Argentina An arbitral motor hotel has ruled against Argentina in an important case arising forth of that unsophisticateds recent economic crisis. The tribunal held that apprehension measures adopted by the Argentine Government violated the countrys obligations under the US-Argentina Bilateral Investment Treaty (BIT). found on these findings, the tribunal awarded a US investor, CMS an approximately US $ 130 Million in compensation. Of the approximately 34 cases brought out front the International Centre for the settlement of Investment Disputes (ICSID) in data link with Argentinas economic crisis, this is the first to yield a merit award. The privatization: background to the disputes Argentine Republic in 1989, legal power was made on economic and public utilities as substantially as elaboration of foreign investment. Gas transportation was unitary of the significant sectors to be included under this reform program. The privatization of TGN, was open(a) to investors by a means of public tender offer.

In the claimant view, the legislation and regulation enacted as well as license, resulted in legal regime under which tariff were to be calculated in dollars conversion to pesos was to be effected at the cartridge clip of billing and tariffs would be adjusted every six months in accordance with US Procured Price Index. CMS has a total participation of 29.42% of TGN shares which was purchased by government. The Argentine Crisis In the late 1990s, Argentina was plunged into an economic crisis (Point 9). The collapse of the Argentine economy was one of the most striking in modern history. The issue in this case cannot be understood without an appreciation of the crisis that ravaged Argentinas economy, rules of order and policy prior to its adoption of the emergency measures challenged by CMS. In particular, the question whether the challenged measures were necessary to maintain public order or protect Argentinas essential security interests... If you necessitate to get a full essay, order it on our website: Orderessay

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