Key Benefits:
LAW 672 OF 2001
(July 30)
Official Journal No. 44.503 of 30 July 2001
by means of which the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" and its Protocol, made in Cartagena de Indias, on 22 January 2000, is hereby approved. (i) their Exchange of Letters of Letters, of 22 January 2000 and of 9 and 30 March 2000.
COLOMBIA CONGRESS
Having regard to the text of the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" and its Protocol, made in Cartagena de Indias, on 22 January 2000 and its Exchange of Letters of Letters, of 22 January 2000 and 9 and 30 March 2000.
(To be transcribed: photocopy of the full text of the above International Instruments is attached).
Republic of Colombia
Ministry of Foreign Affairs
Cartagena de Indias, 22 January 2000.
Minister of Foreign Affairs
have the honor to address your excellence in relation to the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" signed between the two governments on 20 January 2000, in the city of Santa Fe de Bogota.
In this regard, I give consideration to your Excellency, the following interpretative note of the Agreement in such a way that the High Contracting Parties understand in the development of the same the following:
I. Nothing in the Agreement for the Promotion and Reciprocal Protection of Investments shall be construed as preventing a party from adopting or maintaining measures intended to preserve public order.
Your Excellency the Lord
JUAN GABRIEL VALDES SOUBLETE
Minister of Foreign Affairs
Santiago de Chile.
II. The provisions of the Agreement should be understood in accordance with the provisions of article 336 of the Colombian Political Constitution of 1991, and in this sense, in accordance with the law and with a The aim of the public or social interest is to establish monopolies as a financial arbitration, after full compensation of individuals who are deprived of the exercise of lawful economic activity. In the event that, pursuant to article 336 , the total or partial expropriation of an investment is reached, the compensation to be paid shall be fixed in accordance with the provisions of the Article VI of the agreement.
This note and the response of your Excellency to the same tenor constitute an Agreement between the two Governments which shall enter into force from the date of the entry into force of the Agreement on the Promotion and Protection of Investments.
I take the opportunity to renew your Excellency the assurances of my highest and most distinguished consideration.
The Foreign Minister,
Guillermo Fernandez de Soto.
Republic of Chile
Ministry of Foreign Affairs
Cartagena de Indias, 22 January 2000
Minister of Foreign Affairs:
have the honor to address your Excellency in connection with the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" signed between the two governments on 22 January 2000, in the city of Santa Fe de Bogota.
In this regard, I give consideration to Your Excellency, the following interpretative note of the Agreement in such a way that the High Contracting Parties understand in the development of the same the following:
I. Nothing in the Agreement for the Promotion and Reciprocal Protection of Investments shall be construed as preventing a Party from adopting or maintaining measures intended to preserve public order.
Your Excellency the Lord
Guillermo Fernandez de Soto.
Minister of Foreign Affairs.
II. The provisions of the Agreement should be understood in accordance with the provisions of article 336 of the Colombian Constitution of 1991, and in this sense, in accordance with the law and with a The aim of the public or social interest is to establish monopolies as a financial arbitration, after full compensation of individuals who are deprived of the exercise of lawful economic activity. In the event that, pursuant to article 336 , the total or partial expropriation of an investment is reached, the compensation to be paid shall be fixed in accordance with the provisions of the Article VI of the Agreement.
This note and the response of your Excellency to the same tenor constitute an Agreement between the two Governments, which shall enter into force from the date of the entry into force of the Agreement on the Promotion and Protection of Investments.
I take the opportunity to renew your Excellency the assurances of my highest and most distinguished consideration.
Juan Gabriel Valdes Soublete.
Minister of Foreign Affairs.
Republic of Colombia
Ministry of Foreign Affairs
Santa Fe de Bogota, D. C., March 9, 2000.
Mr. Ambassador:
have the honour to address your Excellency in relation to the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments", signed between the two governments on 22 January 2000 in the city of Cartagena.
In particular, I would like to inform Your Excellency that an involuntary error has been reported in the Exchange of Letters of January 22, 2000, since it appears that the Agreement was signed in the city of Santa Fe de Bogota, when he himself I subscribe to the city of Cartagena, which is why I take into consideration your Excellency that in this sense the Notes exchanged on January 22, 2000 are understood.
Your Excellency the Lord
Anibal Francisco Palma Fourcade
Ambassador of Chile
The City
For the above, I take into consideration your Excellency, that this note and the answer of your Excellency that I formulated in the same tenor, as well as the Exchange of Letters made in Cartagena de Indias on January 22, 2000, constitute an agreement between the two governments, which shall enter into force from the date of the entry into force of the Agreement on the Promotion and Protection of Investments.
I take the opportunity to renew your Excellency the assurances of my highest and most distinguished consideration.
Minister of Foreign Affairs
Guillermo Fernandez de Soto.
Santa Fe de Bogota, 30 March 2000.
Excellent Minister:
I have the honor to acknowledge receipt of the attentive V.E. Note dated March 9, 2000, which reads as follows:
" Mr. Ambassador:
have the honour to address your Excellency in relation to the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments", signed between the two governments on 22 January 2000 in the City of Cartagena.
In particular, I would like to inform your Excellency that an involuntary error has been warned in the exchange of notes of January 22, 2000, since it appears that the Agreement was signed in the City of Santa Fe de Bogota, when he himself " I subscribe to the city of Cartagena, which is why I take into consideration your Excellency that in this sense the Canjeas Notes will be understood on January 22, 2000.
For the above, I put into consideration your Excellency, that this letter and the answer of your Excellency that I formulated in the same tenor, as well as the exchange of letters made in Cartagena de Indias on January 22, 2000, constitute an Agreement between the two Governments, which shall enter into force from the date of the entry into force of the Agreement on the Promotion and Protection of Investments.
I take the opportunity to renew your Excellency the assurances of my highest and most distinguished consideration "
In addition, I have the honor to confirm, on behalf of the Republic of Chile, the Agreement before transcribed and agree that the Note of Your Excellency and the present be considered as constituting an Agreement between the two Governments, together with the with the Exchange of Letters made in Cartagena de Indias on 22 January 2000, which will take effect from the date of the entry into force of the Agreement on the Promotion and Protection of Investments.
I take the opportunity to renew your Excellency the assurances of my highest and most distinguished consideration.
Ambassador
Anibal Palma Fourcade.
To His Excellency Dr. Guillermo Fernandez de Soto
Minister of Foreign Affairs
The City
" AGREEMENT BETWEEN THE REPUBLIC OF COLOMBIA
AND THE CHILE REPUBLIC
For the Promotion and Reciprocal Protection of Investments
The Government of the Republic of Colombia and the Government of the Republic of Chile, hereinafter "the Contracting Parties".
Wishing to intensify economic cooperation for the benefit of both Contracting Parties;
With the intention of creating and maintaining conditions favorable to the investments of investors of one Contracting Party in the territory of the other, involving transfers of capital;
Recognising the need to promote and protect foreign investments with a view to promoting the economic prosperity of both Contracting Parties;
You have agreed to the following:
For the purposes of this Agreement:
1. The term "investor" means the following subjects who have made investments in the territory of the other Contracting Party in accordance with this Agreement:
(a) Natural persons who, in accordance with the legislation of that Contracting Party, are considered nationals of that Contracting Party;
(b) Legal entities, including corporations, corporations, trade associations or any other entity incorporated under the law of that Contracting Party, that are headquartered and carry out economic activities in accordance with their social object, in the territory of that Contracting Party;
2. The term "investment" refers to any kind of property or rights related to it, provided that it has been effected in accordance with the laws and regulations of the Contracting Party in whose territory it was carried out and shall comprise, in particular, although not exclusively:
(a) movable and immovable property, the right of ownership over these, as well as all other real rights, such as easements, mortgages, usufructs, garments;
(b) Actions, social contributions and any other type of economic participation in companies;
c) Credit rights or any other benefit that has economic value;
d) Intellectual property rights, including copyright and industrial property rights, such as patents, technical processes, trademarks, trade names, industrial designs, know-how and reason social;
e) Concessions granted by law, by an administrative act or under a contract, including concessions to explore, cultivate, extract or exploit natural resources.
Any change in the way assets are invested shall not affect their investment character, provided that such modification is effected in accordance with the law of the contracting party on whose territory the assets are made the investment.
3. The term "territory" includes, in addition to the land, sea and air space under the sovereignty of each Contracting Party, marine and underwater areas, in which they exercise sovereign rights and jurisdiction, in accordance with their respective legislation and international law.
ARTICLE II. APPLICATION. This Agreement shall apply to investments made, before or after its entry into force, by investors of a Contracting Party, in accordance with the legal provisions of the other Contracting Party, in the territory of the latter. However, it shall not apply to differences or disputes that have arisen prior to its validity or to disputes over events occurring before its entry into force, even if its effects persist after its entry into force.
ARTICLE III. PROMOTION, ADMISSION AND PROTECTION OF INVESTMENTS. Each Contracting Party, subject to its general policy in the field of foreign investments, shall encourage investment by investors from the other Contracting Party on its territory. you will admit them in accordance with their legislation and regulations.
Each Contracting Party shall protect within its territory the investments made in accordance with its laws and regulations by the investors of the other Contracting Party and shall not impede the administration, maintenance, use, usufruct, extension, sale and settlement of such investments by unjustified or discriminatory measures.
ARTICLE IV. TREATMENT OF INVESTMENTS.
1. Each Contracting Party shall ensure a fair and equitable treatment within its territory to the investments of the investors of the other Contracting Party and shall ensure that the exercise of the rights recognized herein shall not be hindered in the practice.
2. Each Contracting Party shall grant to the investments of the investors of the other Contracting Party carried out on its territory, a treatment no less favourable than that granted to the investments of its own investors, or to investors of a third country, if the latter treatment is more favourable.
3. 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 any third State shall not be interpreted in such a way as to require a Contracting Party to extend to nationals or companies of the other Contracting Party the benefit of any treatment, preference or privilege resulting from the creation of a free trade area, a customs union, a common market, a economic union or other form of regional economic organisation or any international agreement intended to facilitate border trade, existing or existing in the future of which one of the Contracting Parties is or becomes a party.
1. Each Contracting Party shall ensure, without delay, to the investors of the other Contracting Party to carry out the transfer of funds related to the domestic legislation, that it complies with the requirements laid down in domestic law. investments in free currency convertibility, in particular, but not exclusively:
a) Dividends, rents, utilities, and other earnings;
(b) the capital or the proceeds of the disposal or total or partial liquidation of an investment;
c) The funds product of the arrangement of a dispute and compensation in accordance with Articles 6or. and 7or.
2. Transfers shall be made in accordance with the exchange rate prevailing on the market at the date of the transfer, in accordance with the law of the Contracting Party that has admitted the investment.
ARTICLE VI. EXPROPRIATION AND COMPENSATION.
1. None of the Contracting Parties shall take any measure that deprives, directly or indirectly, an investor from the other Contracting Party of their investment, unless the following conditions are met:
(a) Measures shall be taken pursuant to the law, due to public utility, national interest or social interest, as provided for in their respective constitutions;
b) Measures are non-discriminatory; and,
(c) Measures shall be accompanied by provisions for the payment of a prompt, appropriate and effective compensation.
2. The compensation shall be based on the market value which the investments concerned have on the date immediately preceding the date on which the measure was adopted or has come to public knowledge. Where it is difficult to determine such value, the compensation shall be fixed in accordance with internationally accepted valuation methods, and may take into account elements such as the capital invested, its depreciation, the capital repatriated until that date, the replacement value and other relevant factors. In the event of any unjustified delay in the payment of compensation, interest shall be recognised at the market rate on the value of such compensation, from the date on which the measure becomes effective, up to the date of payment.
3. The legality of the measure and the amount of the compensation may be claimed before the judicial authorities of the Contracting Party which adopted it.
ARTICLE VII. COMPENSATION FOR DAMAGES OR LOSSES. The investors of each Contracting Party whose investments in the territory of the other Contracting Party suffer losses due to a war, an armed conflict, a state of national emergency; disturbances civil or other similar events in the territory of the other Contracting Party, shall receive from the other Contracting Party, in respect of reparation, compensation, compensation or other arrangement, a treatment no less favourable than that which it grants its own investors or those of any third State.
1. Where a Contracting Party or a body authorised by the Contracting Party has granted insurance or other financial collateral against non-commercial risks, in respect of any investment by one of its investors in the territory of the other Party Contracting party, the latter shall acknowledge the rights of the first Contracting Party to subrogate itself to the rights of the investor, where he has made a payment under such insurance or guarantee.
2. Where a Contracting Party has paid its investor and in such virtue has assumed its rights and benefits, such investor shall not be entitled to claim such rights and benefits to the other Contracting Party, except express authorization of the First Contracting Party.
1. Disputes arising out of the scope of this Agreement, between one of the Contracting Parties and an investor of the other Contracting Party which has made investments in the territory of the first Contracting Party, shall, as far as possible, be settled by means of queries.
2. If, by means of such consultations, no solution is reached within three months of the date of the request for the settlement, the investor may submit the dispute;
(a) to the competent courts of the Contracting Party on whose territory the investment was made;
(b) To an ad hoc tribunal which, unless the parties to the dispute agree otherwise, shall be established under the rules of arbitration of the United Nations Commission for International Trade Law;
(c) International arbitration of the International Center for the Settlement of Investment Disputes (ICSID), established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, opened for the signed in Washington on March 18, 1965.
3. Each Contracting Party gives its consent in advance and irrevocably so that any difference of this nature may be submitted to any of the arbitral tribunals referred to in literals (b) and (c) of the preceding numeral.
4. Once the investor has submitted the dispute to the competent court of the Contracting Party on whose territory the investment or to some of the arbitral tribunals indicated above, the choice of one or the other procedure shall be final;
5. The arbitral judgments shall be final and binding on the parties to the dispute and shall be executed in accordance with the internal law of the Contracting Party in whose territory the investment was made.
6. The Contracting Parties shall refrain from dealing, through diplomatic channels, matters related to disputes subject to judicial proceedings or to international arbitration, in accordance with the provisions of this Article, until such time as they are concluded, except in the case where the other party to the dispute has not complied with the judgment or decision of the Arbitration Court, in the terms set out in the respective judgment or decision.
ARTICLE X. DISPUTE RESOLUTION BETWEEN CONTRACTING PARTIES.
1. The differences arising between the Contracting Parties concerning the interpretation and application of this Agreement shall be resolved, as far as possible, by direct negotiations.
2. If no understanding is reached within six months of the date of notification of the dispute, any Contracting Party may submit it to an ad-hoc Arbitration Court in accordance with the provisions of this Agreement. Article.
3. The arbitral tribunal shall consist of three members and shall be constituted as follows: within two months from the date of notification of the request for arbitration, each Contracting Party shall appoint an arbitrator. Those two arbitrators, within 30 days of the appointment of the latter, shall elect a third member who shall be a national of a third State, who shall preside at the Court. The designation of the President shall be approved by the Contracting Parties within thirty days, counted from the date of his nomination.
4. If, within the time limits laid down in paragraph 3 of this Article, the designation has not been made, or the required approval has not been granted, any Contracting Party may request the President of the International Court of Justice to do the designation. If the President of the International Court of Justice is prevented from carrying out such a function or if he is a national of one of the Contracting Parties, the Vice-President shall make the appointment, and if the latter is prevented from to do so or be a national of one of the Contracting Parties, the Judge of the Court who follows him in seniority and who is not a national of any of the Contracting Parties, shall make the designation.
5. The President of the Court shall be a national of a third State with which both Contracting Parties maintain diplomatic relations.
6. The arbitral tribunal shall decide on the basis of the provisions of this Agreement, the principles of International Law applicable in the matter and the General Principles of Law recognized by the Contracting Parties. The Court will decide by a majority vote and determine its own procedural rules.
7. Each Contracting Party shall bear the costs of the respective arbitrator, as well as those relating to its representation in the arbitral proceedings. The costs of the President and the other costs of the proceedings shall be settled in equal parts by the Contracting Parties unless they agree otherwise.
8. The decisions of the Court shall be final and binding for the Contracting Parties.
The Contracting Parties shall consult each other on any matter related to the application or interpretation of this Agreement.
ARTICLE XII. FINAL PROVISIONS.
1. The Contracting Parties shall notify each other of compliance with the constitutional requirements for the entry into force of this Agreement. The Agreement shall enter into force 60 days after the date of the last notification.
2. This Agreement will remain in force for a period of ten years and will be extended for an indefinite period thereafter. After ten years, the Agreement may be denounced at any time by each Contracting Party, with a prior notice of twelve months, communicated by diplomatic means.
3. With respect to investments made prior to the date on which the notice of termination of this Agreement is made effective, its provisions shall remain in force for an additional period of ten years from that date.
Made in Cartagena de Indias, Republic of Colombia, at twenty-two (22) days of January 2000, in two copies of the same tenor, in Spanish, both texts being equally authentic.
By the Government of the Republic of Colombia,
Martha Lucia Ramirez de Rincon.
Minister of Foreign Trade.
By the Government of the Republic of Chile,
Juan Gabriel Valdes Soublette
Minister of Foreign Affairs.
PROTOCOL
At the time of signing the Agreement between the Government of the Republic of Colombia and the Government of the Republic of Chile for the Promotion and Reciprocal Protection of Investments, the Contracting Parties have also agreed upon the following provisions which are an integral part of that Agreement.
Ad. Iarticle.
By way of derogation from the numeral 2 of this article, loans are not considered investment.
Ad. IIIarticle.
1. Nothing in this Agreement shall require any Contracting Party to protect investments made with capital or assets that are determined in accordance with the law of each Contracting Party, criminal.
2. The provisions of this Agreement shall not apply to tax matters.
Ad. Varticle.
1. The invested capital may be transferred only after a year since its entry into the territory of the Contracting Party, unless the legislation of the Contracting Party provides for a more favourable treatment.
2. A transfer shall be deemed to be carried out "without delay" where it has been carried out within the time limit normally necessary for the completion of the transfer formalities required by the relevant legislation of the Contracting Party concerned. Such a period shall not exceed that generally accepted in international commercial banking practices.
3. No provision of this Agreement shall be construed as preventing a Contracting Party from adopting or maintaining measures restricting transfers where the Party faces serious difficulties in its balance of payments, or the threat of such transfers. provided that the restrictions are compatible with the International Monetary Fund's Constitution, its annexes and amendments ratified by each party.
Made in Cartagena de Indias, Republic of Colombia, at twenty-two (22) days of January 2000, in two copies of the same tenor, in Spanish, both texts being equally authentic.
By the Government of the Republic of Colombia.
Martha Lucia Ramirez de Rincon.
Minister of Foreign Trade.
By the Government of the Republic of Chile,
Juan Gabriel Valdes Soublette.
Minister of Foreign Affairs. "
EXECUTIVE BRANCH OF PUBLIC POWER
PRESIDENCY OF THE REPUBLIC
Santa Fe de Bogota, D. C., April 11, 1999.
Approved. Submit to the consideration of the honorable National Congress, for the constitutional effects.
ANDRES PASTRANA ARANGO
The Foreign Minister,
Guillermo Fernandez de Soto.
DECRETA:
ARTICLE 1o. Approve the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" and its Protocol, made in Cartagena de Indias, 22 January 2000 and its clearing notes, dated 22 January 2000, and 9 and 30 March 2000.
ARTICLE 2o. In accordance with the provisions of Article 1o. of Law 7a of 1944, the "Agreement between the Republic of Colombia and the Republic of Chile for the Promotion and Reciprocal Protection of Investments" and its Protocol, made in Cartagena de Indias, on 22 January 2000 and its Exchange of Letters It is clear from 22 January 2000 and 9 and 30 March 2000 that Article 1 (1) of the Treaty provides for the of this law shall be adopted, obliging the country from the date on which the international link is perfected.
ARTICLE 3o. This law governs from the date of its publication.
The President of the honorable Senate of the Republic,
MARIO URIBE ESCOBAR.
The Secretary General of the honorable Senate of the Republic,
MANUEL ENRIQUEZ ROSERO.
The President of the honorable House of Representatives,
BASILIO VILLAMIZAR TRUJILLO.
The Secretary General of the honorable House of Representatives,
ANGELINO LIZANO RIVERA.
COLOMBIA-NATIONAL GOVERNMENT
Communicate and comply.
Execute, upon revision of the Constitutional Court, in accordance with article 241-10 of the Political Constitution.
Dada in Bogotá, D. C., on July 30, 2001.
ANDRES PASTRANA ARANGO
The Foreign Minister,
GUILLERMO FERNANDEZ DE SOTO.
The Minister of Foreign Trade,
MARTHA LUCIA RAMIREZ DE RINCON.
