Award

Global Telecom Holding S.A.E. v. Canada

ICSID · Investment (ICSID and treaty) · Canada · 27 Mar 2020

Why it matters

This award is significant for its detailed analysis of the scope of the 'services' exception in Canada's older BITs, particularly whether it covers telecommunications. The majority held that the exception is broad, while the dissent argued it should be limited. The case also clarifies the standard for fair and equitable treatment in the context of regulatory changes and national security reviews.

Summary

Global Telecom Holding (GTH), an Egyptian company, invested in Wind Mobile, a Canadian wireless startup, through a complex structure. Canada's 2008 AWS auction included policies favoring new entrants, but later regulatory changes (the 2013 Transfer Framework) and a national security review of GTH's voting control application allegedly harmed GTH's investment. GTH claimed breaches of fair and equitable treatment, full protection and security, national treatment, and free transfer of funds under the Canada-Egypt BIT. The Tribunal found jurisdiction over most claims but dismissed them on the merits. It held that the Transfer Framework was a legitimate regulatory change, the national security review was conducted properly, and there was no breach of the BIT's substantive protections. The dissent argued that the majority misinterpreted the BIT's Annex exception for services, which should not exclude telecommunications from national treatment obligations.

The detail

Parties: Global Telecom Holding S.A.E. v. Canada

Case number: ICSID Case No. ARB/16/16

Outcome: Tribunal upheld jurisdiction over most claims but dismissed all claims on the merits; no damages awarded.

Applicable law: Agreement between Canada and Egypt for the Promotion and Protection of Investments (BIT); ICSID Convention; VCLT

Issues in play: Interpretation of the BIT's Annex exception for 'services in any other sector' and its interaction with national treatment obligations; also issues of fair and equitable treatment, full protection and security, and transfer of investments.

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