Peru Accuses Freeport of “Abuse”
Peru stressed that the tribunal properly treated penalties and interest as inseparable from the nation’s tax regime, qualifying them as taxation measures under the trade agreement. The government also argued Freeport should have pursued a supplementary decision if it believed the tribunal had overlooked part of its case, rather than seeking annulment.
By escalating the matter to an ad hoc committee, Peru says, Freeport is engaging in “an abuse of the annulment process,” a remedy reserved for extraordinary procedural flaws. The government is now pressing for Freeport to shoulder all related costs, including ICSID and committee fees plus Peru’s legal expenses.
Freeport Strikes Back
In May, Freeport countered that annulment was warranted because the tribunal “manifestly exceeded its powers” by failing to decide the royalty penalty claims. The company accuses arbitrators of conflating royalties with taxes, thereby neglecting their duty to rule and failing to meet ICSID’s procedural standards.
