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Can the Guatemalan state expropriate a foreign investment?

According to the cited documentsOfficial text of Decree 9-98: no direct sourceTo be confirmedLegal framework

The Foreign Investment Law (Decree 9-98) bars direct or indirect expropriation, or any equivalent measure, except on proven grounds of collective utility, social benefit or social interest; in that case it must be done on non-discriminatory bases, in accordance with the law, and with prior and effective compensation. The same law recognizes the investor's right to turn to international arbitration under the applicable treaties and laws. In practice, the arbitral awards against Guatemala have rested on breach of the minimum standard of treatment under CAFTA-DR (RDC, 2012 award; TECO, 2013 award), not on a formal expropriation.

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Sources

  • italaw

    Railroad Development Corporation v. Guatemala, ICSID ARB/07/23

    italaw.comAccessed Aug 19, 2026Go to the source
  • CIADI

    Laudo de re-sometimiento TECO Guatemala Holdings v. Guatemala

    icsidfiles.worldbank.orgAccessed Aug 19, 2026Go to the source