I. INTRODUCTION

1. Ecuador has commenced this proceeding under the State-to-State arbitration provisions of Article VII of the Treaty between the United States of America and the Republic of Ecuador concerning the Encouragement and Reciprocal Protection of Investment (“Treaty”) because there is a “dispute between the Parties concerning the interpretation or application of the Treaty which [has not been] resolved through consultations or other diplomatic channels.”1 The dispute concerns the proper interpretation and application of Article II(7) of the Treaty, which requires that “[e]ach Party shall provide effective means of asserting claims and enforcing rights with respect to investment, investment agreements, and investment authorizations.”2

2. The United States denies that this Tribunal has jurisdiction in this case on a number of grounds. In logical sequence, the United States’ first argument is that, even if there were an interpretation/application dispute, Article VII jurisdiction can be exercised only when such a dispute arises in “a concrete case involving a claim of breach under the Treaty.”3 The United States’ second argument is that no interpretive dispute exists in any event.