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Partial Award on Economic Loss Throughout Ethiopia (Federal Democratic Republic of Ethiopia v. State of Eritrea)

Eritrea Ethiopia Claims Commission July 1 2003

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Partial Award on Economic Loss Throughout Ethiopia (Federal Democratic Republic of Ethiopia v. State of Eritrea)

Permanent Court of Arbitration

Eritrea Ethiopia Claims Commission July 1 2003

Facts

The Federal Democratic Republic of Ethiopia (Ethiopia) (plaintiff) and the State of Eritrea (Eritrea) (defendant) were parties to a number of bilateral treaties, including agreements regarding transit, trade, and infrastructure. The countries went to war between 1998 and 2000. In 2000, the countries signed a peace agreement, under which any claims of loss the countries had against one another would be heard by an international arbitral commission. Ethiopia brought before the commission a claim for economic losses it endured during the war, alleging that Eritrea had breached the economic bilateral treaties to which the countries were parties prior to the war. Eritrea argued that the treaties were not in effect during the war.

Rule of Law

Issue

Holding and Reasoning

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