INTERNATIONAL ARBITRATION 1/3LY
THE NEXUS BETWEEN DEVELOPMENT AND ARBITRATION
CAN FOREIGN INVESTMENT CONTINUE WITHOUT INVESTOR PROTECTION? PETER Brazil, somewhat surprisingly, has ratified neither the ICSID Convention nor any Bilateral Investment Treaty (BIT). Would Brazil benefit from signing ICSID? Do you expect this position to change any time soon? BOSCO Although we have not ratified the ICSID Convention or any BIT, Brazil has been one of the main countries to receive investment, especially due to the economic stability we have enjoyed in these last years. However, with the increase in the participation of Brazilian companies in the international market, in particular through the investment in different states, it is crucial that Brazil negotiates and ratifies a BIT in order to protect the interest of such companies in these markets. Moreover, the ratification of these treaties may help to secure continued investment from foreign companies in Brazil, even during times of national economic instability.
PETER Recently, Brazil has seen a number of large-scale construction projects being developed due to global events such as the World Cup and the Olympics. Do you think such projects will have an impact on the number of arbitrations in the country? BOSCO It is expected to, yes. Numerous contracts for infrastructure projects, related to these events, contain arbitration agreements. I anticipate that there will be a considerable number of arbitrations following on from them. PETER I am licensed by the Brazilian Bar Association (OAB) to practice international law in Brazil. This allows Clyde & Co to have an office in Sao Paulo and offer international law advice. Do you think there is a market for the international law firms advising Brazilian clients in International Arbitration? BOSCO This is a sensitive issue. Certainly, Brazilian companies participating in international arbitration proceedings abroad must be assisted by international law firms, but with the likely participation of Brazilian firms. On the other hand, with the evolution and current sophistication of Brazilian firms in the practice of international arbitration, where arbitrations are seated in Brazil, the Brazilian companies tend to hire local firms.
WITH THE INCREASE IN THE PARTICIPATION OF BRAZILIAN COMPANIES IN THE INTERNATIONAL MARKET, IN PARTICULAR THROUGH THE INVESTMENT IN DIFFERENT STATES, IT IS CRUCIAL THAT BRAZIL NEGOTIATES AND RATIFIES A BIT.
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