Middle East Cement Shipping and Handling Co. SA v. Arab Republic of Egypt

Abstract

Jurisdiction – Bilateral investment treaty — Exchange of notes does not constitute the submission of a dispute to arbitration

Admissibility — Additional claims — ICSID Arbitration Rule 40 — Additional claims admissible in reply when no limitation as to reply’s contents

Foreign investment — Investment disputes — Egypt–Greece Bilateral Investment Treaty, Article 10.2 — Submission of dispute to either the competent national court or an international arbitration tribunal

Applicable law — Egypt–Greece Bilateral Investment Treaty, Article 11 — What constitutes agreement as to the rules of law within the meaning of ICSID Convention, Article 42(1) — Application of national law provisions limiting claims existing under a bilateral investment treaty

Foreign investment — Definition of investment — Egypt–Greece Bilateral Investment Treaty, Article 1 — Licence for importation and storage of goods — Lease of vessel by investor constitutes “investment”

Expropriation — Egypt–Greece Bilateral Investment Treaty, Article 4– Prohibition of imports — Seizure of ship without appropriate notification

Interpretation — Fair and equitable treatment — Egypt–Greece Bilateral Investment Treaty, Article 2.2 — Failure to apply appropriate notification procedures

Expropriation — Compensation for — Egypt–Greece Bilateral Investment Treaty, Article 4– Compensation shall amount to market value of investment

Damages — Egypt–Greece Bilateral Investment Treaty, Article 4– Claim for damages must relate to expropriation measure — Article 4does not cover losses due to commercial risk or State procedures not covered by Article 4

Damages — Mitigation of — Duty to mitigate as part of general principles of international law — ICSID Convention, Article 42

Compensation — Compound interest — Integral part of compensation due for expropriation — Standard of international law in expropriation cases