The Covid-19 pandemic and the potential for investor-state claims: a Caribbean perspective

Abstract

ABSTRACT The Covid-19 pandemic has wreaked havoc on Caribbean countries. These countries have lost billions of dollars in foreign capital. Although the region's peoples are currently being vaccinated, the damage already caused by Covid-19 remains immeasurable and will likely continue for many years. Irrespective of whether vaccination results in herd immunity, Caribbean countries not only face the unenviable challenge of recalibrating their economies post-Covid-19, but also the prospect of being hauled before arbitral tribunals in respect of claims brought by investors alleging breaches of investor protection standards as a result of measures taken in response to the pandemic. To the extent that there is a real risk of claims of this nature arising in future, this article contends that Covid-19, as an unprecedented event, exposes the asymmetrical nature of the international investment regime, and its inability to fully countenance the domestic realities of developing countries that are confronted with existential threats.