In a recent award involving Gold Reserve Inc., an international investment arbitral tribunal concluded that Venezuela had to pay compensation of US $713 million for violations of the fair and equitable treatment provision of an international investment agreement between Canada and Venezuela. This decision contrasts sharply with the outcome of other investment disputes concerning Canadian extractive companies. Relying on a detailed analysis of awards involving EnCana Corporation, Glamis Gold Ltd. and Vannessa Ventures Ltd., this article recalls that host states can take measures to increase the benefits and limit the negative impacts of extractive industries’ activities without breaching their obligations under international investment law.
