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6Dec/100

ICSID announces its tribunal’s award in Global Trading Resource Corp. and Globex International, Inc. v. Ukraine case. The claim is commercial, not the investment one!

On December 1, 2010 the arbitration tribunal of the International Centre for Settlement of Investment Disputes announced its final award in Global Trading Resource Corp. and Globex International, Inc. V. Ukraine case.

 On 21 May 2009 the ICSID received a request for arbitration dated 18 May 2009 filed by those companies both juridical persons organized under the laws of the United States of America and engaged primarily in the exportation of meat and poultry products, against Ukraine.

The Tribunal decided that the claims brought in the arbitration by Global Trading Resource Corp. and Globex International, Inc. against Ukraine are manifestly without legal merit, within the meaning of Article 41, paragraph (5) of the ICSID Arbitration Rules. Thus, the Tribunal satisfied the objection raised by Ukraine that the claimants’ claims, as formulated in the request for arbitration and subsequently in the pleadings, represented nothing more than claims to payment under trading contracts, and did not therefore amount, in law, to ‘investments.’ Ukraine insisted that claims arising from trade transactions, involving only the cross-border sale of goods, were deliberately excluded by Ukraine and the USA from the definition of “investment” set out in Article I of the U.S.-Ukraine BIT. Ukraine also asserted that those represented purely commercial transactions of a type which fallen outside the scope of Article 25(1) of the ICSID Convention defining the jurisdiction of ICSID itself, and thus outside the limits of the jurisdiction of any tribunal set up under the ICSID system.

Posted by International Arbitration Team

logo ICSID announces its tribunal’s award in Global Trading Resource Corp. and Globex International, Inc. v. Ukraine case. The claim is commercial, not the investment one!

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