– It’s absolutely crazy. Norway has given companies the opportunity to sue Norway, if there are changes in laws and regulations, says SV deputy chairman Torgeir Knag Fylkesnes. A Latvian shipping company is demanding NOK 5 billion in compensation from Norway. The Supreme Court’s view is that the shipping company has been fishing illegally. Nevertheless, the case could cost Norway dearly. The reason is that in the 1990s Norway signed agreements with several countries, so-called investment agreements. SV deputy chairman Torgeir Knag Fylkesnes believes the investment agreements must be wound up. Photo: Torstein Bøe These protect Norwegian investments abroad and vice versa. Disputes between the company and the state are settled by an arbitration court. – And then they can come up with such absolutely incredible lawsuits. We have to put an end to this, thunders the SV deputy leader. He demands that the agreements be terminated. – The government is well underway with that, replies State Secretary Eivind Vad Petersson (Ap). – Skepticism towards handing over control Norway has canceled around half of the agreements. The background is that the majority of EU countries agree on liquidation, according to the Ministry of Foreign Affairs. – People believe that the national courts are good enough to safeguard legal certainty, says law professor Stig Solheim at the University of Tromsø. – There is probably also a general skepticism against handing over too much of the control to supranational bodies, says Solheim. Professor Stig Solheim at the University of Tromsø. In the first instance, 8 out of a total of 14 agreements with other EEA countries have been concluded. Thus, they can no longer be used to resolve disputes between investors and the state. – The Norwegian authorities are panicking, says Professor Mads Andenæs. He is one of the lawyers handling the case on behalf of the Latvian shipping company Sia North Star. He claims the dismissals are about the snow crab case, and that the authorities are afraid of losing a lawsuit. – These agreements are to promote investments, and they have been good enough for Norway when it comes to protecting Norwegian investments in developing countries, says Andenæs. Facts about investment agreements The main purpose of entering into investment agreements is to protect Norwegian investments abroad, especially in countries where the political and economic situation is unstable. Norway is currently a party to 9 bilateral agreements on investment protection (Chile, China, Madagascar, Peru, Poland, Russia, Slovakia, Sri Lanka and the Czech Republic). In addition, the EFTA free trade agreements with Singapore (2002) and Ukraine (2012) contain certain provisions on investment protection. The terminations with Estonia, Latvia, Lithuania, Romania and Hungary have now entered into force. This means, among other things, that the agreements with these countries can no longer be used as a basis for investor-state dispute resolution. Norway also agrees with Poland, the Czech Republic and Slovakia on the draft termination. Source: regjeringen.no The lawsuit against Norway continues In 2020, Norway was brought before the ICSID arbitration court in London. The shipping company is demanding compensation for loss of income, as a result of not being allowed to fish for snow crab at Svalbard. It can be expensive. A sued state has costs of 4.7 million US dollars on average, a study showed. A Latvian shipping company is suing Norway for NOK 5 billion because they were refused fishing for snow crab at Svalbard. Photo: Ksenia Novikova / news The Ministry of Foreign Affairs rejects the claim for compensation from the shipping company. The Supreme Court in this country has decided that Norway has exclusive rights to the fishing rights at Svalbard. But the view is disputed. – The International Court of Arbitration must decide on the same question. It is conceivable that they see the question somewhat differently, says law professor Stig Solheim. A verdict may come this spring.
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Old agreement means that Norway is required to pay billions in snow crab case – now future lawsuits are prevented – news Troms and Finnmark
