1995 (December 29)
Official Gazette No. 42,171., Of December 29, 1995
Through which the "Agreement between the Government of the Republic of Colombia is approved and the government of the United Kingdom of Great Britain and Northern Ireland which promote and protect investments ", signed in London on 9 March 1994. Summary
THE CONGRESS OF COLOMBIA
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 which promote and protect 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 which promote and protect investments.
The Government of the Republic of Colombia and the government of the United Kingdom of Great Britain and Northern Ireland;
Desiring to create a climate of trust to facilitate greater investment by nationals and companies of one State in the territory of another State;
Recognizing that the encouragement and reciprocal protection of such investments under an international agreement can serve to stimulate individual business initiative and increase prosperity in both States, they Have agreed as follows
ARTICLE 1o. DEFINITIONS. For purposes of this Agreement:
a) "Investment" means every kind of assets and particularly, but not exclusively comprising:
i) movable and immovable property and any other property rights such as mortgages, liens or pledges;
Ii) Shares and securities and obligations of a company and any other form of participation in a company;
Iii) rights to money or to any performance under contract having a financial value;
Iv) Intellectual property rights, goodwill, technical processes and know-how;
V) business concessions conferred by law or under contract, including concessions to explore, cultivate, extract, or exploit natural resources.
Notwithstanding the foregoing, for purposes of this Agreement, loans shall not be considered as investments.
A change in the form in which assets are invested does not affect their character as investment, provided that 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) "returns" means the amounts yielded by an investment and in particular, though not exclusively, includes profits, interest, capital gains, dividends, royalties and fees;
C) "National" means:
i) As regards the United Kingdom: physical persons deriving their nationality status UK law in force in the United Kingdom;
Ii) As regards the Republic of Colombia: natural persons deriving their status as Colombian nationals in accordance with existing legislation;
D) "Companies" means:
i) As regards the United Kingdom: corporations, firms and associations incorporated or constituted under the law in force in any part of the UK associations, or in any territory to which extend this Agreement in accordance with the provisions of Article 13, each having registered office, central administration or principal place of business in that territory is made;
Ii) As regards the Republic of Colombia: corporations, firms and associations incorporated or constituted under the law in Colombia associations;
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 that has been designated or in the future may 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 with respect to the seabed and subsoil and their natural resources and any territory to where the scope of this Agreement is extended, as provided for in Article 13;
Ii) As regards the Republic of Colombia: Colombia's territory, as well as those maritime areas including marine soil and subsoil adjacent to the territorial sea over which Colombia exercises, in accordance with international law, rights purpose of exploring and exploiting natural resources in those areas.
. 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 by its laws and regulations admit such capital.
ARTICLE 3o. TREATMENT OF INVESTMENT.
1. Investments by nationals or companies of each Contracting Party shall at all receive fair and equitable treatment time and shall enjoy full protection and security in accordance with international law to a non lower level to that enjoyed by investments of nationals or companies the other Contracting Party in its own territory.
2. Neither Contracting Parties impede through arbitrary or discriminatory measures the management, maintenance, use, enjoyment or disposal of investments in its territory of nationals or companies of the other Contracting Party. Each Contracting Party shall fulfill any obligations that have contracted with respect to investment of nationals or companies of the other Contracting Party.
. NATIONAL TREATMENT AND CLAUSE most favored nation.
1. Neither Contracting Party shall in its territory investments or returns of nationals or companies of the other Contracting Parties less favorable treatment than that it accords to investments and returns of its own nationals and companies or to investments and returns of national and companies of any third State.
2. Neither Contracting Party shall in its territory to nationals or companies of the other Contracting Party with respect to the management, maintenance, use, enjoyment or disposal of their investments less favorable than treatment accorded to their own nationals and companies or to nationals or companies of any third State.
3. For avoidance of 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 the 3rd article, 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 carried out by portfolio investments;
Ii) Utilities (telecommunications, energy and water and sewage);
Iii) supply of goods and services to the public sector;
Iv) automotive assembly.
The 5th ARTICLE. COMPENSATION FOR LOSSES.
1. Nationals or companies of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war or other armed conflict, revolution, state of national emergency, revolt, insurrection or riot in the territory of the latter Contracting Party shall receive of the latter Contracting Party treatment, as regards restitution, indemnification, compensation or other settlement, no less favorable than that which that Contracting Party accords to its own nationals or companies or to nationals or companies of any third State. Resulting payments shall be freely transferable in accordance with article 7.
2. Without prejudice to paragraph 1 of this Article, nationals and companies of one Contracting Party who suffer in any of the situations referred to in that paragraph requisitioning of their property by the forces or authorities of the other Contracting Party are reinstate your property. If you are losses from property damage caused by the armed forces or authorities of the other Contracting Party that were not required by the needs of the situation, they are granted adequate compensation. Resulting payments shall be freely transferable in accordance with article 7.
. Nationalization and expropriation. Effective Jurisprudence
Article 7. REPATRIATION OF INVESTMENTS AND RETURNS.
1. Each Contracting Party in respect of investments guarantee to nationals or companies of the other Contracting Party the unrestricted transfer of 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 concerned. Unless otherwise agreed by the investor, transfers shall be made at the rate of exchange applicable on the day of the transfer in accordance with exchange regulations.
2. Notwithstanding the provisions of paragraph 1 of this Article, in circumstances of exceptional difficulties of balance of payments each Contracting Party shall be entitled, for a limited period of time, to practice in an equitable, non-discriminatory and good faith, the powers conferred by its laws and procedures to limit the free transfer of investments and returns.
. EXCEPTIONS. The provisions of this Agreement relating to the granting of treatment no less favorable than that granted to nationals or companies of either Contracting Party or any third State shall not be construed so as to oblige one Contracting Party to extend to national or companies of the other the benefit of any treatment, preference or privilege resulting from:
a) any customs union or similar international agreement exists or exist in the future in which it is or may become a party either Contracting Parties or
b) any international agreement or arrangement relating wholly or mainly to taxation or any domestic legislation relating wholly or mainly to taxation.
Article 9. REFERENCE TO INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES.
1. Each Contracting Party hereby consents agree to submit to the International Centre for Settlement of Disputes Investment (hereinafter "the Centre") any legal dispute arising between that Contracting Party and a national or company of the other Contracting Party relating to an investment of the latter in the territory of the first for settlement by conciliation or arbitration, as provided by the Convention on the settlement of Disputes Investment between States and nationals of other open states for signature in Washington on March 18, 1965.
2. A company that is incorporated or constituted under the law in force in the territory of a Contracting Party and in which before there is a difference most of the shares were owned by nationals or companies of the other Contracting Party shall be treated in accordance Article 25, 2, b) of the Convention as a company of the other Contracting Party for the purposes of the Convention.
3. If you experience one of those differences and this can not be settled amicably by the parties to the dispute through the exercise of local resources or otherwise within the date of the written notice of the claim three months, then if national or affected company also consents in writing to submit the dispute to the Centre to resolve it by conciliation or arbitration in accordance with the agreement, either party can initiate the process by directing a request to that effect to the Secretary General of the Centre, in accordance with the provisions of articles 28 and 36 of the Convention. In case of disagreement as to whether conciliation or arbitration is the more appropriate procedure the national or company that is party to the dispute shall have the right to choose. The Contracting Party, party to the dispute presented as an objection at any stage of the proceedings or enforcement of the award that the national or company that is the other party to the dispute has received compensation of part or all of their losses pursuant to an insurance contract.
4. the general tenor of the above provisions, the Centre shall not have jurisdiction if the party initiating the procedure agreed, however you agree to submit, or submit the dispute to the courts or administrative tribunals of the Contracting Party, party to the dispute.
5. No Contracting Party seek to resolve through diplomatic sent to the Centre via a difference unless:
a) The Secretary General of the Centre, or a conciliation commission or an arbitral tribunal constituted by it, decides that the dispute is not is within the jurisdiction of the Centre, or
b) the other Contracting Party ceases to comply or not comply with an award made by an arbitration tribunal.
6. Even when the Republic of Colombia accedes to the Convention to which paragraph 1 of this Article, any difference in that is a party and be forwarded to the Centre will be given a treatment under complementary mechanism for the administration of conciliation , arbitration and surveys.
ARTICLE 10. DIFFERENCES BETWEEN THE PARTIES.
1. The differences between the Contracting Parties relating to the interpretation or application of this Agreement should as far as possible be resolved through diplomatic channels.
2. If a dispute between the Contracting Parties can not be settled in this way in three months from the date on which written notice of the difference notification occurs, it shall submit, at the request of either Contracting Party, to an arbitral tribunal.
3. Such an arbitral tribunal shall be constituted for each individual case as follows: within three months from the receipt of the request for arbitration, each Contracting Party shall appoint one member of the tribunal. Those two members shall then choose a national of a third State who, subject to the approval of the two Contracting Parties shall be appointed Chairman of the Tribunal. The Chairman shall be appointed within two months from the date of appointment of the other two members.
4. If within the periods specified in paragraph 3 of this article have not produced the necessary appointments, either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make the appointments necessary . If the President is a national of either Contracting Party or if for any other reason is prevented from performing that function, the Vice President be invited to make the necessary appointments. If the Vice President is a national of either Contracting Party or if he is also prevented from discharging the said function, the member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to perform appointments necessary.
5. The arbitral tribunal shall reach a decision by majority vote. This decision shall be binding on both Contracting Parties. Each Contracting Party shall bear the costs of its member of the tribunal and of its representation in the arbitration proceedings; the cost of the Chairman and the remaining costs will be assumed equally between the Contracting Parties. However, the court in its decision may provide that a higher proportion of costs charged to one of the two Contracting Parties and this award shall be binding on both Contracting Parties. The tribunal shall determine its own procedure.
Article 11. Subrogation.
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 shall recognize:
to ) the transfer to the former Contracting Party of all the rights and claims that the indemnified party has received under this Agreement or under the laws of the latter Contracting Party, and
b) that the former Contracting Party is entitled to exercise these rights and enforce such claims by virtue of subrogation, to the same extent as the party indemnified.
2. The first Contracting Party shall be entitled in all circumstances to the same treatment regarding:
a) The rights and claims acquired by it under the transfer, and
b) Any payments received in pursuance of those rights and claims, that the indemnified Party is entitled to receive under this Agreement in respect of the investment concerned and its related returns.
3. Any payments received in non-convertible currency by the first Contracting Party in pursuance of the rights and claims acquired shall be freely available to the first Contracting Party for the purpose of cancellation of any expenses incurred in the territory of the second Contracting Party.
ARTICLE 12. APPLICATION OF OTHER RULES. If the laws of either Contracting Party or obligations of existing international law or established hereafter between the Contracting Parties in addition to this Agreement contain rules, whether general or specific, entitling investments of national or companies of the other Contracting Party a more favorable treatment than that provided in this Agreement, such rules shall, to the extent that they are more favorable to the provisions of this Agreement.
ARTICLE 13. TERRITORIAL EXTENSION. At the time of ratification of this Agreement, or at any time after it, the provisions of this Agreement shall be extended to the territories for whose international relations the Government of the United Kingdom are responsible as may be agreed between the Parties Contracting by an exchange of letters.
ARTICLE 14. EFFECTIVE DATE. This Agreement shall be ratified and enter into force after exchange of instruments of ratification.
ARTICLE 15. TERM AND TERMINATION. This Agreement shall remain in force for a period of ten years. Thereafter shall continue in effect until they expire twelve months from the date on which either Contracting Party notifies in writing to the other termination of this Agreement. However, in respect of investments made during the term of the Agreement, its provisions shall remain effective with respect to such investments for a period of ten years after the date of termination and without prejudice to the subsequent application of the rules of law general international.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Governments
, they have signed this Agreement.
Done in duplicate in London on March 9, 1994 in English and Spanish
language, both being equally authentic.
For the Government of the Republic of Colombia,
For the Government of the United Kingdom
of Great Britain and Northern Ireland,
LEGISLATIVE BRANCH PUBLIC POWER.
PRESIDENCY OF THE REPUBLIC.
Approved. Submit to the consideration of the honorable
National Congress for constitutional purposes.
(Sgd.) Ernesto Samper Pizano
The Minister of Foreign Affairs,
(Sgd.) RODRIGO PARDO GARCÍA-PEÑA. DECREES
ARTICLE 1A. To approve the "Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland which promote and protect investments", signed in London on 9 March 1994.
Article 2A. In accordance with the provisions of article 1. 7a Act 1944, the "Agreement between the Government of the Republic of Colombia and the Government of the United Kingdom of Great Britain and Northern Ireland which I promote and protect investments" signed in London on 9 March 1994, that the first article of this law is passed, will force the country from the date the international link is perfect therefrom.
ARTICLE 3A. This law applies from the date of publication.
The President of the honorable Senate, JULIUS CAESAR
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable House of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
Republic of Colombia - National Government
communication and publication.
Run for review by the Constitutional Court under Article 241_10
of the Constitution.
Given in Bogota, DC, 29 December 1995.
Ernesto Samper Pizano Minister of Foreign Affairs,
RODRIGO PARDO GARCÍA-PEÑA.
The Minister of Foreign Trade, Luis Alfredo Ramos Botero