Pac Rim Cayman LLC v. Republic of El Salvador, ICSID Case No. ARB/09/12
Summary
The brief, submitted by member organizations of La Mesa Nacional Frente a la Minería Metálica de El Salvador, contends that Pac Rim's claims do not constitute a 'legal dispute' or a 'measure' under the ICSID Convention and CAFTA. It argues that the conflict is a political disagreement over metals mining policy driven by organic community opposition, rather than a legal dispute with the state. The brief further alleges that Pac Rim abused the legal process by strategically reincorporating in the United States to gain CAFTA benefits and seeks to use international arbitration to bypass domestic democratic processes and community resistance.
Key insights
- The authors argue that the conflict is a political dispute regarding shifts in public policy rather than a 'legal dispute' under Article 25 of the ICSID Convention or a 'measure' under Article 10.1 of CAFTA.
- The brief asserts that any potential legal dispute expired in 2004 when Pac Rim failed to appeal the Ministry of Environment and Natural Resources' (MARN) denial of its Environmental Impact Assessment (EIA).
- The document claims Pac Rim committed an abuse of process by reincorporating in the United States in December 2007 specifically to access CAFTA arbitration benefits after its initial incorporation in the Cayman Islands for tax avoidance.
- The authors contend that the real dispute is between Pac Rim and local communities, and using an international forum is abusive because those communities have limited rights to participate.
- Opposition to the El Dorado mine is described as an organic movement led by local communities and NGOs, which became a central political issue in El Salvador by 2007, with 62.5% of the population opposing metals mining.
- The brief supports El Salvador's invocation of the 'denial of benefits' provision under CAFTA Article 10.12 to prevent 'obligation creep' and the globalization of treaty obligations to all foreign investors.
Cite the original document
- APA
- Orellana, M. A., Marr, A., & Gross, S. G. (2011). Pac Rim Cayman LLC v. Republic of El Salvador, ICSID Case No. ARB/09/12. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2015/04/PAC_RIM_Amicus_20May11_Eng.pdf
- Chicago
- Orellana, Marcos A., Aaron Marr, and Stuart G. Gross. Pac Rim Cayman LLC v. Republic of El Salvador, ICSID Case No. ARB/09/12. Center for International Environmental Law, 2011. https://www.ciel.org/wp-content/uploads/2015/04/PAC_RIM_Amicus_20May11_Eng.pdf.
- Wikipedia
- {{cite report |last1=Orellana |first1=Marcos A. |last2=Marr |first2=Aaron |last3=Gross |first3=Stuart G. |title=Pac Rim Cayman LLC v. Republic of El Salvador, ICSID Case No. ARB/09/12 |publisher=Center for International Environmental Law |date=20 May 2011 |url=https://www.ciel.org/wp-content/uploads/2015/04/PAC_RIM_Amicus_20May11_Eng.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{orellana2011pac, author = {Orellana, Marcos A. and Marr, Aaron and Gross, Stuart G.}, title = {{Pac Rim Cayman LLC v. Republic of El Salvador, ICSID Case No. ARB/09/12}}, institution = {Center for International Environmental Law}, year = {2011}, month = may, url = {https://www.ciel.org/wp-content/uploads/2015/04/PAC_RIM_Amicus_20May11_Eng.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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