ICSID - morocco7 Nov 2024 21:17
I have been doing some research on the ICSID process. The research shows that:
Morocco has faced 15 ICSID cases over the years, typically related to disputes in sectors like energy, mining, and infrastructure. Below is an overview of Morocco’s track record in ICSID arbitration:
Number of Cases: Morocco has been involved in around 15 ICSID cases since the 1990s. While this isn’t a high number compared to some other countries, it shows that Morocco has encountered investor-state disputes, often tied to regulatory or contractual issues in major sectors.
Outcome of Cases: Morocco’s outcomes in ICSID cases have been mixed:
In some cases, Morocco has won, with the tribunal dismissing investors' claims. These favourable rulings for Morocco usually occur when the ICSID panel finds that the state's actions were within its legal rights or were reasonable regulatory measures.
Morocco has also reached settlements with investors before the tribunal issued a final ruling, allowing both parties to resolve disputes out of court.
However, Morocco has lost cases as well. In these instances, ICSID tribunals have found that Morocco violated BIT protections, leading to awards in favour of the investor. These awards have sometimes included significant compensation for damages, legal fees, and interest.
Impact of Recent Cases: As Morocco has been actively promoting foreign investment in mining, energy, and infrastructure, the outcomes of recent ICSID cases have been important for investor confidence. Morocco tends to prioritize negotiated settlements to avoid prolonged disputes that could deter future investments.
Given this history, while Morocco has managed to avoid major losses in some cases, it has faced rulings against it in others. The mining sector is also politically sensitive, which might influence Morocco’s willingness to settle.
Morocco’s experience reflects a broader trend where countries face frequent claims under investment treaties, especially in resource-heavy sectors like mining, and increasingly prefer to negotiate settlements. This approach can maintain diplomatic and investor relations, as many countries seek to limit reputational damage and foster a stable investment climate
Here are so interesting links to information : https://blogs.duanemorris.com/internationalarbitration/2023/08/11/icsid-caseload-statistics-fy2023/
If you want to see Morocco's history and open cases with the ICSID : https://icsid.worldbank.org/cases/case-database