Global Telecom Holdings S.A.E. v. Government of Canada

Claimant

Global Telecom Holding S.A.E. (GTH) is an Egyptian-incorporated integrated telecommunications services company that operates in markets around the world.

Articles

• II (Establishment, Acquisition and Protection of Investments)
• IV (National Treatment after Establishment and Exceptions to NT)
• IX (Transfer of Funds)

Damages claimed

US$1.8 billion

Status

Won. The Tribunal dismissed all the claims. The Tribunal did not award any costs.

Arbitration Rules

ICSID

Summary

Procedural History

On May 28, 2016, GTH filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) under the Canada-Egypt Foreign Investment Promotion and Protection Agreement (FIPA). A Tribunal was constituted on February 21, 2017 with the appointment of Professor George Affaki as presiding arbitrator. The Tribunal also included Mr. Gary Born (nominated by the claimant) and Professor Vaughn Lowe (nominated by Canada). A hearing on the jurisdiction, merits and damages was held in Paris from April 1-12, 2019.

On March 27, 2020, a majority of the three arbitrators dismissed all claims against Canada as well as GTH’s request for US$ 1.8B in damages. One of the arbitrators wrote a dissenting opinion. The award as well as documents related to this arbitration have been made publically available on the website of ICSID, the administering authority for the arbitration.

Factual Overview and Nature of the Claim

In 2008 GTH entered the Canadian telecommunications market through an investment in a Canadian company, Globalive Wireless Management Corporation, which would later provide mobile telecommunications services in parts of Canada as “Wind Mobile”.

Over the investment period, GTH alleged that Canada failed to create a fair, competitive and favourable regulatory environment for new investors in this sector.

GTH alleged that Canada breached several of its obligations under the Canada-Egypt FIPA denying the obligation to accord fair and equitable treatment in accordance with principles of international law [Article II (2) (a)], full protection and security [Article II(2)(b)], national treatment [Article IV(1)] and to refrain from imposing restrictions on the transfer of investments and returns [Article IX (1)].

GTH claimed damages in the amount of US$1.8 billion arising from the alleged breaches.

Legal Documents

This case is being administered under the arbitral rules of the International Centre for Settlement of Investment Disputes (ICSID). Additional details related to this case can be viewed at the website of ICSID.

ICSID Annulment Proceedings

On July 27, 2020, both disputing parties submitted requests for partial annulment of the award. GTH was seeking to annul the parts of the award relating to the Tribunal’s decisions that it did not have jurisdiction over the national treatment claims; findings that Canada did not breach the fair and equitable treatment obligation; and the findings that Canada did not breach the transfer of funds obligation. Canada was seeking to annul the Tribunal’s decision that an exception on decisions whether or not to permit an investment was applicable.

On September 30, 2022, a majority of the Annulment Committee dismissed the both applications. The annulment decision as well as documents related to this process will be made available on the ICSID website in due course.