Foreign Investors Sue Peru More Than Any Other LATAM Nation
— Peru is the most sued country in Latin America by foreign investors, with 23 active lawsuits at the World Bank’s investment tribunal — more than Mexico (21) or any other nation in the region
— Three companies that already won cases worth $259 million combined have gone to US courts to seize Peruvian assets because Lima refused or delayed payment — a pattern that is scaring off new investment
— Peru’s worst-case legal exposure from all investor disputes reaches 9.28% of GDP — roughly $30 billion — with presidential elections weeks away and foreign investment already at a two-decade low
No country in Latin America faces more Peru investor lawsuits than Peru itself. With 23 active cases at the World Bank’s investment tribunal — known as ICSID — the country has overtaken Mexico to become the region’s most sued state by foreign companies, after two new filings in just the first two months of 2026.
The Rio Times, the Latin American financial news outlet, examines why Peru keeps generating investment arbitrations at a pace unmatched in the hemisphere — and why a growing pattern of unpaid awards is now damaging the country’s credibility just as it needs foreign capital most.
Two New Peru Investor Lawsuits in Early 2026
The first new filing came on January 22, when Upland Oil sued Petroperu over its disqualification from operating Lot 192, an oil block in the Amazon. Upland alleges it was excluded based on a disputed assessment of its financial capacity — the second time it has taken the state oil company to ICSID over the same issue.
The second, filed February 10, involves Blue Water Worldwide LLC and 12 other US companies claiming they overpaid capital gains tax on a 2019 electricity-sector sale. They invoked the US-Peru free trade agreement, reflecting a trend where tax disputes increasingly migrate to international tribunals.
Both new 2026 cases involve the energy sector — no coincidence in a country where the Camisea gas pipeline recently failed and Middle East conflict is driving oil price volatility. Ricardo Ampuero, an international arbitration specialist, noted that energy is one of Peru’s most heavily regulated industries, making any regulatory shift a potential trigger for complex cross-border disputes.
Peru Won’t Pay Investors Who Already Won
More troubling than the volume of cases is Peru’s failure to pay investors who have already won. In March, toll-road operator Deviandes filed in US District Court seeking to enforce a $99.4 million award. Canadian miner Lupaka Gold went to the same court demanding $68.6 million after Peru let the 120-day appeal window expire without challenge.
In December, another US court found Peru in default on a $91 million award owed to Kuntur Wasi over the canceled Chinchero airport concession. Peru eventually paid in January. Lupaka’s award carries 9% annual interest, meaning the bill grows by roughly $6 million per year of delay.
World Bank tribunal awards are enforceable in virtually every country without the usual legal hurdles required for other arbitration decisions. That means investors can target Peruvian state assets abroad — including Petroperu‘s debt payments, ships, and real estate — to force compliance when Lima refuses to pay.
Why Peru Is a Nightmare for Foreign Investors
A peculiarity of Peru’s legal framework explains the inflated numbers. According to ProInversion, 71% of the country’s public-private partnership contracts include a clause allowing any dispute above $10 million to be elevated directly to the World Bank tribunal. This means contractual and tax disagreements that other countries resolve domestically end up in international arbitration in Peru.
Of Peru’s 23 active cases, only 14 are treaty-based investment disputes — the standard metric used internationally. By that count, Peru would rank third behind Mexico and Colombia, whose cases are exclusively treaty-based. The Brookfield toll-road expropriation case alone claims $2.7 billion.
Peru’s government has estimated that its total exposure from all arbitrations and legal disputes could reach 9.28% of GDP — approximately $30 billion — in a worst-case scenario. With presidential elections approaching in April 2026 and investment at structurally low levels, the message to foreign capital is clear: Peru wants investment, but the system designed to protect investors is becoming one of the country’s largest fiscal liabilities.
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