ACT 279 OF 1996
Official Gazette No. 42787 of May 16, 1996
Through which the Agreement between the Government of the Republic of Colombia and the Government of the approved Republic of Peru on promotion and reciprocal protection of investments signed in Lima on 26 April 1994. Summary
THE CONGRESS OF COLOMBIA DECREES:
having regard to the text of the Agreement between the Government of the Republic of Colombia and the Government of the Republic of Peru on promotion and reciprocal protection of investments, signed in Lima on 26
April 1994. "AGREEMENT BETWEEN tHE GOVERNMENT oF tHE REPUBLIC oF COLOMBIA
aND tHE GOVERNMENT oF tHE REPUBLIC oF PERU oN tHE PROMOTION aND
reciprocal Protection of Investments the Government of the Republic of Colombia and the
government of the Republic of Peru, hereinafter referred to as "the Contracting Parties"
Desiring to intensify economic cooperation to the mutual benefit of both States,
in order to create favorable conditions for investments by nationals or companies of one Contracting Party in the territory of the other Contracting Party,
Recognizing that the promotion and protection of such investments under agreement can encourage private economic initiative and increase the welfare of both peoples.
Have agreed as follows: ARTICLE 1o
. DEFINITIONS. For the purposes of this Convention:
(1) "Investment" means every kind of asset and in particular, though not exclusively:
(a) Ownership of movable and immovable property and other property rights such as mortgages and pledges;
(B) Shares and any other kind of participation in companies or rights generated by joint venture contracts;
(C) Bonds, documents and financial papers, and any other contractual obligation of having an economic value;
(D) intellectual and industrial property;
(E) concessions conferred by law or under a contract for the exercise of an economic activity, including concessions for prospecting, exploration and exploitation of natural resources;
(2) "returns" means the amounts obtained from an investment made in accordance with this Agreement, such as profits, dividends, royalties and other income.
(3) Companies means all legal entities, including civil and commercial companies and also associations with or without legal entity engaged in an economic activity within the scope of this Agreement and are controlled directly or indirectly by nationals of one of the Contracting Parties.
(4) "National" means natural persons who according to the laws of each Contracting Party has the nationality of the same.
(5) "territory" means, in addition to the areas within the land boundaries, the adjacent maritime areas including soil and subsoil, and airspace, which make up the territory of each of the Contracting Parties under with its Constitution and rules of international law.
. PROMOTION AND PROTECTION OF INVESTMENTS. Each of the Contracting Parties shall promote within its territory investments by nationals or companies of the other Contracting Party and shall admit them in accordance with its laws and regulations.
ARTICLE 3. TREATMENT FOR INVESTMENT.
(1) Investments of nationals or companies of each Contracting Party shall at all times, receive fair and equitable treatment and shall enjoy full protection and security in accordance with the principles of international law in a manner no less favorable those who enjoy the investments of nationals or companies of the other Contracting Party in its own territory.
(2) The Contracting Parties shall refrain from arbitrary or discriminatory measures regarding the management, maintenance, use, enjoyment or disposal of investments in its territory of nationals or companies of the other Contracting Party.
(3) Each Contracting Party shall observe any commitment ever made in relation to investments of nationals or companies of the other Contracting Party in its territory.
ARTICLE 4. NATIONAL TREATMENT AND CLAUSE most favored nation.
(1) Contracting Parties shall provide in its territory to investments or gains nationals or companies of the other Contracting Party treatment no less favorable than that accorded to investments or returns of its own nationals or companies or investments or gains nationals or companies of any third State.
(2) Contracting Parties shall provide in its territory to nationals or companies of the other Contracting Party as regards the management, maintenance, use, enjoyment or disposal of investments, treatment no less favorable than that that granted to its own nationals or companies or to nationals or companies of any third State.
The 5th ITEM. 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 the nationals or companies of the other Contracting Party the benefit of any treatment, preference or privilege resulting from:
(a) any customs union, common market, free trade area or similar international agreement exists or exist in the future, in which it is or becomes some part of the Contracting Parties, or
(b) any international agreement or arrangement relating wholly or mainly to taxation or any total or mainly to taxation related domestic legislation.
ARTICLE 6o. REPATRIATION OF CAPITAL AND INVESTMENT GAINS.
(1) Each Contracting Party shall guarantee to nationals or companies of the other Contracting Party the free transfer of payments related to an investment, in particular but not exclusively:
(a) Capital investment and reinvestments made in accordance with the laws and regulations of the Contracting Party in which the investment was made;
(B) All of the profits;
(C) The proceeds from the sale or total or partial liquidation of the investment.
(2) The transfer shall be made in freely convertible currency at the exchange rate applicable market the day of transfer, without restriction or delay.
(3) Notwithstanding the preceding paragraph, the Contracting Parties may establish restrictions on the free transfer of payments related to an investment in the event of serious difficulties in their balance of payments. In any case, this power shall be exercised for a limited period, fairly, in good faith and without discrimination.
ARTICLE 7. EXPROPRIATIONS and Countervailing Measures.
(1) Investments by nationals or companies of either Contracting Party shall not be subjected in the territory of the other Contracting Party, to:
(a) Nationalization or equivalent measures, through which a Contracting Parties take control of certain activities considered strategic in accordance with its domestic law, or services, or
(b) any other form of expropriation or measures having equivalent effect except that any such measures are made according to law, on a non-discriminatory on grounds expressly set forth in the respective political constitutions and those listed in the Ad Article (7) (1) of the attached Protocol relating to the internal needs of that part and with a prompt, adequate and effective.
(2) Compensation for the acts referred to paragraphs (1) (a) and (b) of this Article in accordance with the principles of international law, amount to the genuine value of the investment immediately before the measures were taken or before the impending measures were publicly known, whichever comes first. It shall include interest until the date of payment, shall be paid without undue delay, be effectively realizable and be freely transferable in accordance with the rules stipulated in Article 6 on repatriation of capital and profits from investments, as long as even in case of difficulties exceptional balance of payments the transfer of at least one third annual party is guaranteed.
(3) The national or company affected shall have the right, according to the law of the Contracting Party adopting the relevant measure, to prompt review, by a competent authority of that Contracting Party, of its case and the valuation of its investment in accordance with the principles set out in paragraphs (1) and (2) of this article.
(4) If a Contracting Party adopts any of the measures referred to in paragraphs (1) (a) and (b) of this section, in relation to the assets of an existing incorporated or constituted under the law company in any part of its territory in which nationals or companies of the other Contracting Party own shares, must ensure that the provisions of paragraphs (1) to (3) of this Article are applied so as to ensure prompt compensation adequate and effective with respect to the investment of these nationals or companies of the other Contracting Party owners of the shares.
(5) Nothing in this Agreement shall require a Contracting Party to protect investments of people involved in serious criminal activities.
Article 8. Compensation for losses.
(1) Nationals or companies of one Contracting Party who suffer losses on their investments owing to war or other armed conflict, revolution, state of national emergency, state of siege, insurrection or other similar events in the territory of the other Contracting Party, the latter will be treated no less favorably than their own nationals or companies or to nationals or companies of any third State as regards restitution, compensation and benefits. Such refunds, compensation and resulting compensation shall be freely transferable in accordance with the provisions of Article 6 of this Convention.
(2) Notwithstanding paragraph (1) of this article, in the event that nationals or companies of a Contracting Party suffer in any of the situations referred to in that paragraph the occupation of their property by force authorities of the other Contracting Party, it will be refunded. If you are losses from property damage caused by acts of force 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 6. of this Agreement.
Article 9. Subrogation.
(1) If a Contracting Party or its authorized agent makes payments to its nationals or companies under a guarantee issued by an investment against non-commercial risks in the territory of the other Contracting Party, the latter, without prejudice of the rights under Article 13 correspond to the first Contracting Party shall recognize the subrogation all the rights of those nationals or companies to the former Contracting Party or its authorized agent, either by law or by legal act.
(2) Likewise, the other Contracting Party shall recognize the cause and extent of the subrogation of the former Contracting Party or its authorized in all the previous rights holder agent, conferred in accordance with this Convention.
ARTICLE 10. IMPLEMENTATION OF THE CONVENTION. This Agreement shall apply to investments made by nationals or companies of a Contracting Party in the territory of the other Contracting before or after the entry into force of this Convention Party.
ARTICLE 11 More favorable treatment. If the laws of Contracting Parties or agreed by the Contracting Parties beyond what was agreed in this Agreement, whether general or special regulations under which must be granted to investments of nationals or companies of the other Contracting Party a more favorable than that provided in this Agreement treatment, such regulations will prevail on it, as soon as more favorable.
ARTICLE 12. SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND A NATIONAL COMPANY OR THE OTHER CONTRACTING PARTY.
(1) Disputes legal nature arising between a Contracting Party and a national or company of the other Contracting Party in connection with investments covered by this Agreement should, if possible, be settled amicably between the parties in the dispute.
(2) If a dispute can not be settled amicably by the parties within the date of the written notice of the claim three months, may be submitted to the competent court of the Contracting Party in whose territory would have made the investment, or to international arbitration of the International Centre for Settlement of investment Disputes (hereinafter called "the Centre").
(3) Each Contracting Party hereby consents to submit to the Centre Convention any dispute 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 in the Convention on the settlement of Investment Disputes between States and nationals of other open for signing in Washington on March 18, 1965. United
(4) company is incorporated or constituted under the law in force in the territory of a Contracting Party and in which before the dispute arises, the majority of the shares were owned by nationals or companies of the other Contracting Party shall be treated, for under Article 25 (2) (b) of the Convention as a company of the other Contracting Party for the purposes of the provisions of the said Convention.
(5) If the national or company affected also consents in writing to submit the dispute to the Centre for resolving it through 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 as provided in 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 is a party to the dispute can not be presented as an objection at any stage of the proceedings or enforcement of the award, the fact that the national or company, which is the other party to the dispute, has received a total or partial compensation their losses pursuant to an insurance contract.
(6) However, the above provisions the Centre shall not have jurisdiction if the party initiating the procedure agreed, you agree to submit or submit the dispute to the administrative or judicial courts of the Contracting Party, party to the dispute.
(7) No Contracting Party seek to resolve through diplomatic channels a dispute submitted to the Centre unless:
(a) The Secretary General of the Centre or a conciliation commission or an arbitral tribunal constituted by it decide that the difference is not within the jurisdiction of the center, or
(b) the other Contracting Party fails to comply with any award rendered by an arbitral tribunal.
ARTICLE 13. SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES.
(1) Disputes between the Contracting Parties concerning the interpretation or application of this Convention shall so far as possible, be settled by the Governments of both Contracting Parties through diplomatic channels.
(2) If a dispute can not be settled in this way, within three months from the date of the Contracting Parties to the controversy has promoted, will be submitted to an arbitral tribunal at the request of one of the Contracting Parties.
(3) The arbitral tribunal shall be constituted ad hoc. Each Contracting Party shall appoint one member and the two members shall agree to elect as President a national of a third State who shall be appointed by the Governments of both Contracting Parties. Members shall be appointed within two months and the President within three months, after one Contracting Party has informed the other that you want to submit the dispute to an arbitral tribunal.
(4) If the periods specified in paragraph (3) were not observed and in the absence of any other agreement, either Contracting Party may invite the President of the International Court of Justice to make the necessary appointments. If the President is a national of one of the Contracting Parties had gotten or otherwise prevented from making such appointments, it will be the Vice make them. If the Vice President also is a national of one of the two Contracting Parties or if it had gotten too is prevented from making such appointments, the Member of the Court next in seniority who is not a national of one of the Contracting Parties, make the same.
(5) The arbitral tribunal shall decide by majority vote. Its decisions shall be binding. Each Contracting Party shall bear the expenses incurred by the activity of its arbitrator and the costs of its representation in the arbitration proceedings. The expenses of the Chairman and other costs shall be borne equally by the two Contracting Parties. The arbitral tribunal shall determine its own procedure.
ARTICLE 14. CLAIMS OR INTERRUPTION OF DIPLOMATIC CONSULAR. The provisions of this Convention continue to be fully applicable whether or not there are diplomatic or consular relations between the Contracting Parties.
ARTICLE 15. ENTRY INTO FORCE, DURATION AND TERMINATION OF THE AGREEMENT.
(1) The Contracting Parties shall notify each other when the demands of their respective laws for the entry into force of this Agreement have been fulfilled.
(2) This Agreement shall enter into force thirty days after the date of the second notification. Its validity is ten years and thereafter for an indefinite period, unless one of the Contracting Parties gives written notice to the other Contracting Party of its intention to terminate it twelve months before its expiration.
(3) For investments made before the date of termination of this Agreement, it shall continue in force for ten years following that date.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto
by their respective Governments,
have signed this Agreement.
DONE at Lima, on 26 April 1994
in two copies in Castilian language,
texts being equally authentic.
For the Government of the Republic of Colombia,
The Minister of Foreign Affairs, Noemi Sanin
For the Government of the Republic of Peru,
The President of the Council of Ministers and Minister
The Head (E.) signed
Legal Office of the Ministry of Foreign Affairs, DECLARES
That this reproduction is faithful copy taken from the original text of the Agreement between the Government of the Republic of Colombia and the Government of the Republic of Peru on the Promotion and Reciprocal Protection of Investments made in Lima on April 26, 1994, which lies in the archives of the Legal Office of the Ministry.
Given in Santa Fe de Bogota, DC, at thirty-one (31) days
of October in 1994 (1994).
The Chief Legal Office (E.)
CABRERA JOSE JOAQUIN GORI. RAMA
PUBLIC POWER EXECUTIVE PRESIDENCY OF THE REPUBLIC
Santa Fe de Bogota, DC
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
ITEM 1A. Approval of the Agreement between the Government of the Republic of Colombia and the Government of the Republic of Peru on the Promotion and Reciprocal Protection of Investment, signed in Lima on 26 April 1994. ARTICLE
2A. In accordance with the provisions of article 1. 7a Act 1994, the Agreement between the Government of the Republic of Colombia and the Government of the Republic of Peru on the Promotion and Reciprocal Protection of Investments, signed in Lima on April 26, 1994, that article 1. this law passed, it will force the country from the date the international link is perfect therefrom.
ARTICLE 3A. This Law governs 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
prior review by the Constitutional Court,
under Article 241-10 of the Constitution.
Given in Santa Fe de Bogota, DC, 13 May 1996.
Ernesto Samper Pizano Minister of Foreign Affairs,
RODRIGO PARDO GARCÍA-PEÑA.
The Minister of Foreign Trade,
MORRIS HARF MEYER.