Key Benefits:
1995 ACT 246
(December 29)
Official Journal No. 42,171., of December 29, 1995
By means of which the "Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland for which investments are promoted and protected" is approved in London on 9 March 1994.
COLOMBIA CONGRESS
Having regard to the text of the "Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland for the promotion and protection of investments", signed in London on 9 March 1994.
Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland for which investments are promoted and protected.
The Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland;
encouraged by the desire to create a climate of confidence to facilitate greater investment by nationals and companies of a State in the territory of the other State;
Recognizing that the encouragement and reciprocal protection of such investments under an international agreement can serve to stimulate individual trade initiative and increase prosperity in both states,
You have agreed to the following:
ARTICLE 1o. DEFINITIONS. For the purposes of this Agreement:
(a) "Investment" means any asset class and in particular, but does not exclusively include:
i) Property and movable properties and any other property rights such as mortgages, liens or garments;
ii) Shares in and securities and obligations of a company and any other form of participation in a company;
iii) Rights to money or under-contract benefits that have a financial value;
iv) Intellectual property rights, good name, technical processes and technical expertise;
v) Trade concessions conferred by law or under contract, including concessions to explore, cultivate, extract, or exploit natural resources.
However, for the purposes of this Agreement, loans shall not be considered as investments.
A change in how assets are invested does not affect their character as an investment, as long as the new form of investment is not a loan. The term "investment" includes all investments, whether they have been made before or after the date of entry into force of this Agreement;
(b) "Rentres" means the amounts produced by an investment and in particular, but not exclusively, includes earnings, interest, capital gains, dividends, royalties and royalties;
c) "Nationals" means:
i) As far as the United Kingdom is concerned: natural persons who derive their status as the United Kingdom's nationality from the law in force in the United Kingdom;
(ii) As far as the Republic of Colombia is concerned: natural persons who derive their status from Colombian nationals in accordance with current legislation;
d) "Companies" means:
(i) In the case of the United Kingdom: companies, firms and associations incorporated or incorporated in accordance with the law in force in any part of the United Kingdom, or in any territory to which this Agreement is extended in accordance with the laws of the United Kingdom provisions of Article 13, each having registered office, central administration or principal place of business in that territory;
(ii) As regards the Republic of Colombia: companies, firms and associations incorporated or incorporated in accordance with the legislation in force in Colombia;
e) "Territory" means:
(i) As regards the United Kingdom: Great Britain and Northern Ireland, including the territorial sea and any maritime area beyond the territorial sea of the United Kingdom which has been designated or which may in the future be designated under the national law of the United Kingdom in accordance with international law as an area within which the United Kingdom may exercise rights in respect of the marine soil and the subsoil and its natural resources and any territory where the scope of this Agreement as provided for in Article 13;
(ii) With regard to the Republic of Colombia: the territory of Colombia, as well as those maritime areas including the soil and marine subsoil adjacent to the territorial sea over which Colombia exercises, in accordance with international law, rights for the purpose of exploring and exploiting natural resources in these areas.
ARTICLE 2o. ADMISSION OF INVESTMENT. Each Contracting Party shall encourage nationals or companies of the other Contracting Party to invest capital in its territory, and subject to the right to exercise the powers conferred upon it by its laws and regulations shall admit such capital.
ARTICLE 3o. TREATMENT OF THE INVERSION.
1. Investments by nationals or companies of each Contracting Party shall at all times be treated fairly and fairly and shall enjoy full protection and security in accordance with international law at a level not lower than that which enjoy the investments of nationals or companies of the other Contracting Party on its own territory.
2. None of the Contracting Parties shall impede by arbitrary or discriminatory measures the administration, maintenance, use, usufruct or disposal of investments in their territory of nationals or companies of the other Contracting Party. Each Contracting Party shall comply with any obligation it has incurred in respect of investments by nationals or companies of the other Contracting Party.
ARTICLE 4. NATIONAL TREATMENT AND MOST FAVOURED NATION CLAUSE.
1. No Contracting Party shall submit to its territory the investments or returns of nationals or companies of the other Contracting Parties to a less favourable treatment than that which it grants to the investments and returns of its own companies or companies or the investments and returns of nationals and companies of any third State.
2. No Contracting Party shall submit to its territory the nationals or companies of the other Contracting Party, in respect of the administration, maintenance, use, use or disposal of its investments, at a minimum favourable to that which it grants to its own nationals and companies or to nationals or companies of any third State.
3. In order to avoid doubt, it is confirmed that the treatment provided for in paragraphs 1 and 2 above shall apply to the provisions of Articles 3 to 12 of this Agreement.
4. Notwithstanding the provisions of this Article and Article 3o, paragraph 2, the Republic of Colombia reserves the right to create or maintain restrictions on the granting of national treatment in the following sectors:
i) Acquisitions that can be made through portfolio investments;
ii) Utilities (telecommunications, energy and aqueduct and sewer);
iii) Supply of goods and services to the public sector;
iv) Automotive assembly.
ARTICLE 5o. COMPENSATION FOR LOSSES.
1. Nationals or companies of a Contracting Party whose investments in the territory of the other Contracting Party suffer losses due to war or other armed conflict, revolution, national state of emergency, revolt, insurrection or disturbance in the territory of the latter Contracting Party shall receive from the latter Contracting Party a treatment, in respect of restitution, compensation, compensation or other arrangement, not less favourable than that which that Contracting Party grants to its own nationals or companies or nationals or companies of any third State. The resulting payments shall be freely transferable in accordance with Article 7o.
2. Without prejudice to paragraph 1 of this Article, nationals and companies of a Contracting Party who suffer in any of the situations referred to in that paragraph the requisition of their property by the Armed Forces or authorities of the other Contracting Party shall be restored to its ownership. If they are lost in damage to their property caused by the armed forces or authorities of the other Contracting Party that were not required by the needs of the situation, they will be given adequate compensation. The resulting payments shall be freely transferable in accordance with Article 7.
ARTICLE 6o. NATIONALIZATION AND EXPROPRIATION.
ARTICLE 7o. REPATRIATION OF INVESTMENTS AND RETURNS.
1. Each Contracting Party in respect of investments shall guarantee to the nationals or companies of the other Contracting Party the unrestricted transfer of its investments and returns. Transfers shall be effected without delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed between the investor and the Contracting Party involved. Unless the investor agrees otherwise, the transfers will be made at the applicable exchange rate on the day of the transfer in accordance with the currency regulations in force.
2. By way of derogation from paragraph 1 of this Article, in circumstances of exceptional balance of payments difficulties each Contracting Party shall be entitled, for a limited period of time, to exercise in a fair, non-discriminatory and in good faith, the powers conferred by its laws and procedures to limit the free transfer of investments and returns.
ARTICLE 8o. EXCEPTIONS. The provisions of this Agreement relating to the granting of a treatment no less favourable than that which is granted to nationals or companies of any Contracting Party or of any third State shall not be construed as a way to force a Contracting Party to extend to nationals or companies of the other the benefit of any treatment, preference or privilege resulting from:
(a) Any similar existing or existing customs union or international agreement in which it is or becomes part of any Contracting Party, or
(b) Any related international arrangement or arrangement wholly or primarily with taxation or any domestic legislation related wholly or primarily with taxation.
ARTICLE 9o. REFERENCE TO THE INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DIFFERENCES.
1. Each Contracting Party to this agreement consents to submit to the International Center for Settlement of Investment Disputes (hereinafter "the Center") any legal disputes arising between that Contracting Party and a national or company of the other Contracting Party relating to an investment in the territory of the first party for settlement by means of conciliation or arbitration, as provided for in the Convention on the Settlement of Investment Disputes between States and Nationals of other States opened for signature in Washington on 18 March 1965.
2. A company that is incorporated or incorporated under the law in force in the territory of a Contracting Party and in which before the difference arises the majority of the shares were owned by nationals or companies of the other Party A Contracting Party shall be treated in accordance with Article 25 (2) (b) of the Convention as a company of the other Contracting Party for the purposes of the Convention.
3. If one of those differences arises and the difference cannot be made by the parties in such a difference by the exercise of the local resources or otherwise within three months of the date of the written notification of the claim, then, if the national or company concerned also consents in writing to make the difference to the Center for the resolution of it by conciliation or arbitration according to the Convention, any of the parties can initiate the procedure directing a request to that effect to the Secretary General of the Centre, in accordance with provided for in Articles 28 and 36 of the Convention. In case of disagreement regarding whether the conciliation or the arbitration is the most appropriate procedure, the national or company that is party to the difference will have the right to choose. The Contracting Party which is a party to the difference shall not present as an objection at any stage of the process or the compliance of the award the fact that the national or company that is the other party to the difference has received compensation from a or all of their losses, in compliance with an insurance contract.
4. Notwithstanding the general tenor of the foregoing provisions, the Center shall not have jurisdiction if the party initiating the procedure has agreed, agrees to submit, or submits the difference to the Courts or Administrative Courts of the Party. Contracting party that is part of the difference.
5. No Contracting Party shall seek to resolve by diplomatic means a difference referred to the Center unless:
(a) The Secretary-General of the Center, or a conciliation commission or an arbitration tribunal constituted by him, decides that the difference is not within the jurisdiction of the Center, or
(b) The other Contracting Party shall cease to abide or not comply with an award given by an arbitration tribunal.
6. Until the Republic of Colombia adheres to the Convention referred to in paragraph 1 of this Article, any difference in which it is a party and which is referred to the Center shall be treated in accordance with the supplementary mechanism for the administration of conciliation, arbitration and survey procedures.
ARTICLE 10. DIFFERENCES BETWEEN CONTRACTING PARTIES.
1. The differences between the Contracting Parties related to the interpretation or application of this Agreement should be resolved through diplomatic channels.
2. If a difference between the Contracting Parties cannot be resolved in that manner within three months from the date on which the written notification of the difference occurs, it shall be submitted, at the request of either Party Contractors, to an arbitration tribunal.
3. Such arbitration tribunal shall be constituted for each individual case as follows: within three months of receipt of the request for arbitration, each Contracting Party shall appoint a member of the court. Those two members shall at that time elect a third State national who, subject to the approval of the two Contracting Parties, shall be appointed President of the Court. The President shall be appointed within two months of the date of appointment of the other two members.
4. If, within the periods specified in paragraph 3 of this Article, the necessary appointments have not been made, any Contracting Party may, in the absence of another agreement, invite the President of the International Court of Justice to make the appointments that are necessary. If the President is a national of one of the Contracting Parties or if for another reason he is prevented from exercising that function, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is a national of one of the Contracting Parties or if he is also prevented from exercising that function, the member of the International Court of Justice who follows him in seniority and who is not a national of either Party Contractors will be invited to make the necessary appointments.
5. The court of arbitration must reach a decision by a majority of votes. This decision shall be binding on the two Contracting Parties. Each Contracting Party shall bear the costs of its member in the tribunal and its representation in the arbitral proceedings; the cost of the President and the remaining costs shall be assumed in equal parts between the Contracting Parties. However, the court in its decision may provide that a higher proportion of the costs will be charged to one of the two Contracting Parties and this decision will be mandatory for the two Contracting Parties. The court will determine its own procedure.
1. If a Contracting Party or its designated Agency ("the first Contracting Party") makes a payment for compensation related to an investment in the territory of the other Contracting Party "the second Contracting Party") the second Contracting Party Recognize:
a) The transfer to the first Contracting Party of all rights and claims that the indemnified party has received under this Agreement or under the laws of the second Contracting Party, and
b) That the first Contracting Party has the right to exercise these rights and to assert such claims under the subrogation, in the same proportion as the Indemnified Party.
2. The first Contracting Party shall in all circumstances be entitled to the same treatment in respect of:
a) The rights and claims acquired by it under the transfer, and
(b) Any payment received in compliance with those rights and claims, which the Indemnified Party has the right to receive under this Agreement in respect of the investment in question and its related returns.
3. Any payment received in non-convertible currency by the first Contracting Party in compliance with the acquired rights and claims shall be freely available to the first Contracting Party for the purposes of the cancellation of any expenses incurred in the territory of the second Contracting Party.
ARTICLE 12. APPLICATION OF OTHER RULES. If the legal provisions of any of the Contracting Parties or the obligations of international law already in existence or that are established henceforth between the Contracting Parties in addition to this Agreement, contain rules, whether general or specific, which grant to the investments of nationals or companies of the other Contracting Party a more favourable treatment than that provided for in this Agreement, such rules shall prevail, to the extent that are more favourable to the provisions of this Agreement.
ARTICLE 13. TERRITORIAL EXTENSION. At the time of ratification of this Agreement, or at any time thereafter, the provisions of this Agreement may be extended to the territories of whose international relations the Government of the United Kingdom is responsible, as agreed between the Contracting Parties by means of an exchange of letters.
ARTICLE 14. VALIDITY. This Agreement shall be ratified and shall enter into force on the basis of the exchange of instruments of ratification.
ARTICLE 15. DURATION AND TERMINATION. This Agreement will remain in force for a period of ten years. From there onwards it shall continue to be in force until twelve months from the date on which any of the Contracting Parties notify in writing to the other the termination of this Agreement. However, in respect of investments made during the duration of the Agreement, its provisions shall remain effective in respect of such investments for a period of 10 years after the date of termination and without prejudice to the the subsequent application of the rules of general international law.
In faith of which the subscribed, duly authorized to do so
by their respective governments, have signed this Agreement.
Done in duplicate in London on March 9, 1994 in language
English and Spanish, both texts being equally authentic.
By the Government of the Republic of Colombia,
(Unreadable Signature).
By the UK Government
of Great Britain and Northern Ireland,
(Unreadable Signature).
LEGISLATIVE BRANCH OF PUBLIC POWER.
PRESIDENCY OF THE REPUBLIC.
Santafe de Bogota, D.C.,
Approved. Submit to the honorable consideration
National Congress for Constitutional Effects.
(Fdo.) ERNESTO SAMPER PIZANO
The Foreign Minister,
(Fdo.) RODRIGO PARDO GARCIA-PENA.
DECRETA:
ARTICLE 1A. Approve the " Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland for which the 'investment', signed in London on 9 March 1994.
ARTICLE 2A. In accordance with the provisions of Article 1. of Law 7a of 1944, the "Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland for which investments are promoted and protected", signed in London on 9 March 1994, which by the first article of this Law is approved, it will force the country from the date on which the international link with respect to it is perfected.
ARTICLE 3A. This law applies from the date of its publication.
The President of the honorable Senate of the Republic,
JULIO CESAR GUERRA.
The Secretary General of the honorable Senate of the Republic,
PEDRO PUMAREJO VEGA.
The President of the honorable House of Representatives,
RODRIGO RIVERA SALAZAR.
The Secretary General of the honorable House of Representatives,
DIEGO VIVAS TAFUR.
Republic of Colombia-National Government
Contact and post.
Execute for Constitutional Court Review
pursuant to article 241_10 of the Political Constitution.
Dada en Santafe de Bogota, D.C., at 29 December 1995.
ERNESTO SAMPER PIZANO
The Foreign Minister,
RODRIGO PARDO GARCIA-PENA.
The Minister of Foreign Trade,
LUIS ALFREDO RAMOS BOTERO
