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Exhaustion requirement is incompatible with no-U-turn nature of CAFTA-DR’s dispute resolution clause
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While unconventional, Honduras validly included Exhaustion Requirement in national legislation when ratifying ICSID Convention
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Article 10.20.5. of CEFTA-DR encompasses both jurisdictional and admissibility objections
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Tribunal takes note of Honduras’ scarce reference to Exhaustion Requirement in national legislation and international agreement that provide consent to ICSID arbitration
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Honduras’ choice to include Exhaustion Requirement in law that implemented ICSID Convention is “uncommon”
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Exhaustion rule requires that foreign investors must use all domestic remedies that are reasonably available and effective
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Article 26 of ICSID Convention reverses customary international law rule that foreign national must seek redress before national courts prior to filing international claim
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Background: US investors seek 10 billion USD in compensation after Honduras repeals legal framework for charter cities
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NDP submissions would not assist the tribunal in deciding preliminary legal issue of exhaustion of local remedies
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Various entities and groups reply to call for amici curiae applications under DR-CAFTA
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Claimants invoke Legal Stability Agreement
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Claimants argue that local remedies would in any event be futile
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Submissions address whether an exhaustion requirement must be contained in the instrument of consent to ICSID arbitration, or whether a general notification under the Convention is enough
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Parties dispute whether exhaustion requirement goes to admissibility or jurisdiction
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DR-CAFTA provides for suspension of arbitration to resolve expedited preliminary objection
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Public hearing to be held imminently
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