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Investment dispute—UNCITRAL Tribunal rejects Peru’s jurisdictional objections and finds that Peru acted in breach of the minimum standard of treatment (Gramercy Funds Management LLC and Gramercy Peru Holdings LLC v Republic of Peru)

Published on: 13 February 2023
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Article summary

Arbitration analysis: This case involved an investment dispute between two limited liability companies incorporated under Delaware law—Gramercy Funds Management LLC and Gramercy Peru Holdings LLC (‘claimants’) and the Republic of Peru (‘Peru’ or ‘respondent’) submitted on the basis of the United States- Peru Free Trade Agreement (‘FTA’ or ‘Treaty’) which took effect on 1 February 2009. The UNCITRAL Arbitration Rules 2013 governed this arbitration, with the exception of any modifications made by the Treaty. This dispute relates to a series of judicial and governmental measures regarding the repayment scheme for certain government-issued land reform bonds issued by the Peruvian Government in or around 1970. The Tribunal found that the disputed measures adopted by Peru in 2014 and 2017 constitute a breach of the minimum standard of treatment (‘MST’) required by customary international law, including the fair and equitable treatment...

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