Act 672 2001

Original Language Title: LEY 672 de 2001

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ACT 672 OF 2001
(July 30)
Official Gazette No. 44503 of July 30, 2001
through which the "Agreement between the Republic of Colombia and the Republic of Chile is approved Promotion and Reciprocal Protection of Investments "and its protocol, made in Cartagena de Indias, on 22 January 2000 and Swaps Explanatory Notes dated 22 January 2000 and 9 and 30 March 2000. || | Summary Effective Notes

THE CONGRESS OF COLOMBIA
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, January 22 2000 and Swaps Explanatory Notes dated 22 January 2000 and 9 and 30 March 2000.
(to be transliterated: photocopy of the full text of the aforementioned international instruments attached). Republic of Colombia


Foreign Ministry Cartagena de Indias, 22 January 2000.
Foreign Minister
I have the honor to address Your Excellency regarding 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 January 20, 2000, in the city of Santa Fe de Bogota.
In this sense, I put consideration of your Excellency, the following interpretative note of the Agreement so that the High Contracting Parties understand the development of the following:
I. Nothing in the Agreement for the Promotion and Reciprocal Protection of Investments, shall be construed to prevent a party from adopting or maintaining measures to preserve public order.
His Excellency Mr.

JUAN GABRIEL VALDES SOUBLETE Foreign Minister
Santiago de Chile.
II. The provisions of the Agreement should be in accordance with the provisions of Article 336 of the Constitution of Colombia of 1991, and in this sense, in accordance with the law and with a purpose of public or social interest, will be allowed to establish monopolies rentístico, prior full compensation of individuals who are deprived of the exercise of a licit economic activity will. In the event that application of Article 336 is reached total or partial expropriation of an investment, compensation in such event shall be determined in accordance with the provisions of Article VI of the agreement.
This note and your reply formulated in the same tenor, constitute an Agreement between the two Governments which will take effect from the date of entry into force of the Agreement on the Promotion and Protection of Investments.
Take this opportunity to renew to Your Excellency the assurances of my highest consideration.
The Minister of Foreign Affairs, Guillermo Fernandez de Soto
. Republic of Chile


Foreign Ministry Cartagena de Indias, January 22, 2000
Minister of Foreign Affairs:
I have the honor to address Your Excellency regarding 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 January 22, 2000, in the city of Santa Fe de Bogota.
In this sense, I put to consideration of Your Excellency the following interpretative note of the Agreement so that the High Contracting Parties understand the development of the following:
I. Nothing in the Agreement for the Promotion and Reciprocal Protection of Investments, shall be construed to prevent a Party from adopting or maintaining measures aimed at preserving public order.
His Excellency Mr.
Guillermo Fernandez de Soto.
Minister of Foreign Affairs.
II. The provisions of the Agreement should be in accordance with the provisions of Article 336 of the Notice iPod Pol Constitution of Colombia of 1991, and in this sense, in accordance with the law and with a purpose of public or social interest, it will be allowed to establish monopolies and revenue measures, ranking prior full compensation of individuals who are deprived of the exercise of a licit economic activity. In the event that application of Article 336 is reached total or partial expropriation of an investment, compensation in such event shall be determined in accordance with the provisions of Article VI of the Agreement.
This note and Your Excellency response formulated in the same tenor, constitute an Agreement between the two Governments, which will take effect from the date of entry into force of the Agreement on the Promotion and Protection of Investments.

Take this opportunity to renew to Your Excellency the assurances of my highest consideration.
Soublete Juan Gabriel Valdes.
Minister of Foreign Affairs. Republic of Colombia


Foreign Santa Fe de Bogota, DC, March 9, 2000. Ambassador
:
I have the honor to address Your Excellency regarding 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 January 22, 2000 in the city of Cartagena.
This regard, I wish to inform you that an inadvertent error has 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 it was signed in the city of Cartagena, which is why I put in consideration of your Excellency in this regard notes are understood Mr. exchanged on 22 January 2000. his Excellency

Anibal Francisco Palma Fourcade

Chilean Ambassador City
for the above reasons, I put to consideration of Your Excellency that this note and Your Excellency's reply to formulate in the same tenor as well as the exchange of notes held in Cartagena de Indias on 22 January 2000, constitute an agreement between the two Governments, which will take effect from the date of entry into force of the Agreement on the Promotion and Protection of Investments.
Take this opportunity to renew to Your Excellency the assurances of my highest consideration.

Foreign Minister Guillermo Fernandez de Soto.
Santa Fe de Bogotá, 30 March 2000. Sir,
:
I have the honor to acknowledge receipt of Your Excellency's kind note dated March 9, 2000, which reads as follows :
"Mr. Ambassador:
I have the honor to address Your Excellency regarding 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 January 22, 2000 in the City of Cartagena.
regard, I wish to inform Your Excellency that warned an inadvertent error in the exchange of notes of January 22, 2000, since it appears the Agreement was signed in the city of Santa Fe de Bogota, when it was signed in the city of Cartagena, which is why I put into consideration Your Excellency that in this respect the notes exchanged are understood on January 22, 2000 .
the foregoing, go pon consideration Your Excellency that this Note and Your Excellency's reply to formulate in the same tenor as well as the exchange of notes held in Cartagena de Indias on 22 January 2000 constitute an Agreement between the two Governments, which will take effect from the date of entry into force of the Agreement on Promotion and Protection of investments.
Take this opportunity to renew to Your Excellency the assurances of my highest consideration "
In addition, I have the honor to confirm, on behalf of the Republic of Chile, before transcribed the Agreement and agree that the Note your Excellency and this will be considered as constituting an Agreement between the two Governments, together with the Exchange of Notes held in Cartagena de Indias on 22 January 2000, which takes effect from the date of entry into force Agreement on the Promotion and Protection of Investments.
take this opportunity to renew to Your Excellency the assurances of my highest consideration.

Ambassador Aníbal Palma Fourcade.
to His Excellency Dr. Guillermo Fernández de Soto Minister for Foreign Affairs


the City 'AGREEMENT BETWEEN tHE REPUBLIC oF COLOMBIA
and
tHE REPUBLIC oF CHILE for the Promotion and Reciprocal Protection of Investments the Government
the Republic of Colombia and the Government of the Republic of Chile, hereinafter "the Contracting Parties".
Desiring to intensify economic cooperation for the benefit of both Contracting Parties;
Intending to create and maintain favorable conditions for investments by investors of one Contracting Party in the territory of the other, involving transfers of capital;
Recognizing the need to promote and protect foreign investments with a view to promoting the economic prosperity of both Contracting Parties;
Have agreed as follows: ARTICLE I. DEFINITIONS
.

For the purposes of this Agreement:
1. The term "investor" means the following subjects which have made investments in the territory of the other Contracting Party under this Agreement:

A) natural persons who, according to the law of that Contracting Party, are considered nationals of the same;
B) legal entities, including companies, corporations, trade associations or any other entity incorporated under the laws of that Contracting Party, whose head and carry out economic activities in accordance with its corporate purpose, in the territory of that Party Contractor;
2. The term "investment" means any kind of asset or rights related to it, provided it is carried out in accordance with the laws and regulations of the Contracting Party in whose territory took place and shall include in particular, but not exclusively: | || a) movable and immovable property, property rights over these, and all other property rights such as servitudes, mortgages, leases, pledges;
B) shares, debentures and any other kind of economic participation in companies;
C) Credit claims or any other benefit of economic value;
D) Intellectual property rights, including copyright and industrial property rights such as patents, technical processes, trademarks or trademarks, trade names, industrial designs, know-how and address;
E) concessions conferred by law, by an administrative act or under contract, including concessions to explore, cultivate, extract or exploit natural resources.
Any change concerning how the assets are invested shall not affect their character as investments, provided that such modification is made in accordance with the law of the Contracting Party in whose territory the investment was made.
3. The term "territory", in addition to land, sea and airspace under the sovereignty of each Contracting Party comprises the marine and submarine areas in which they exercise sovereign rights and jurisdiction in accordance with their respective laws and international law.

ARTICLE II. AREA OF APPLICATION. This Agreement shall apply to investments made before or after its entry into force by investors of a Contracting Party under the laws of the other Contracting Party in the territory of the latter. However, shall not apply to disputes that arose prior to its validity or disputes over events before its entry into force, even if their effects persist thereafter.

ARTICLE III. PROMOTION, ADMISSION AND PROTECTION OF INVESTMENTS. Each Contracting Party, subject to its general policy in the field of foreign investment, promote in its territory investments by investors of the other Contracting Party and shall admit them in accordance with its laws and regulations.
Each Contracting Party shall protect within its territory investments made in accordance with its laws and regulations by investors of the other Contracting Party and shall not impair the management, maintenance, use, enjoyment, extension, sale and liquidation of such investments by unjustified or discriminatory measures.

ARTICLE IV. TREATMENT OF INVESTMENTS.

1. Each Contracting Party shall ensure fair and equitable treatment within its territory investments by investors of the other Contracting Party and ensure that the exercise of the rights recognized shall not be hindered in practice.
2. Each Contracting Party shall accord to investments of investors of the other Contracting Party in its territory, treatment no less favorable than that accorded to investments of its own investors or investors of any third country, if the latter is more favorable .
3. 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 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, an economic union or other form of regional economic organization or any international agreement to facilitate border trade, existing or there in the future which is or may become a party of the Contracting Parties.

ARTICLE V. free transfer.


1. Each Contracting Party prior compliance with the requirements of domestic legislation, ensure without delay, to investors of the other Contracting Party to carry out the transfer of funds related to investments in freely convertible currency, in particular but not exclusively :
a) Dividends, income, profits and other income;
B) the capital or proceeds from the sale or total or partial liquidation of an investment;
C) The product of settlement of a dispute and compensation in accordance with Articles 6 funds. and 7th.
2. Transfers shall be made in accordance with the exchange rate prevailing in the market at the date of the transfer, according to the law of the Contracting Party which has admitted the investment.

ARTICLE VI. Expropriation and Compensation.

1. Neither Contracting Party shall take any measures depriving, directly or indirectly, an investor of the other Contracting Party of their investments unless the following conditions are met:
a) The measures to be taken under the law for reasons of public interest, national interest or social interest, as provided in their constitutions;
B) The measures are not discriminatory; and
c) The measures are accompanied by provisions for the payment of prompt, adequate and effective compensation.
2. Compensation will be based on the market value of the investments concerned have in the immediately preceding that in which the measure has been adopted or have reached public knowledge. When it is difficult to determine the value, compensation shall be determined in accordance with the valuation methods internationally accepted, and may take into account elements such as the capital invested, depreciation, capital already repatriated, replacement value and other factors relevant. For any undue delay in the payment of compensation, interest at the market rate on the value of such compensation, from the date on which the measure becomes effective until the date of payment will be recognized.
3. The legality of the measure and the amount of compensation can be claimed before the judicial authorities of the Contracting Party that adopted it.

ARTICLE VII. COMPENSATION FOR DAMAGES OR LOSSES. Investors of each Contracting Party whose investments in the territory you of the other Contracting Party suffer losses owing to war, armed conflict, a state of national emergency; civil disturbances or other similar events in the territory of the other Contracting Party shall receive from the latter, as regards restitution, indemnification, compensation or other settlement, treatment no less favorable than that accorded to its own investors or of any third State.

ARTICLE VIII. Subrogation.

1. When a Contracting Party or an agency authorized by it has granted any insurance or other financial security against non-commercial risks concerning an investment by one of its investors in the territory of the other Contracting Party, the latter shall recognize the rights of the first Contracting Party subrogated to the rights of the investor when payment has been made under such insurance or guarantee.
2. When a Contracting Party has paid its investor and by virtue has assumed its rights and benefits, he said investor may not claim such rights and benefits to the other Contracting Party, unless authorized by the former Contracting Party.

ARTICLE IX. SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND AN INVESTOR OF THE OTHER CONTRACTING PARTY.

1. Disputes arising within the scope of this Agreement, between a Contracting Party and an investor of the other Contracting Party which has made investments in the territory of the first, will be, as far as possible, be settled through consultations .
2. If these consultations fail to produce a solution within three months from the date of request for settlement, the investor may refer the dispute;
A) to the competent courts of the Contracting Party in whose territory the investment was made;
B) an ad hoc tribunal which, unless the parties to the dispute agree otherwise, be established under the arbitration rules of the United Nations Commission on International Trade Law;

C) to international arbitration of the International Centre for Settlement of Investment Disputes (ICSID), established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on 18
3 March 1965. Each Contracting Party gives its irrevocable advance consent for any dispute of this nature can be submitted to any of the arbitral tribunals mentioned in paragraphs b) and c) of the preceding paragraph.
4. Once the investor has re mitted the dispute to the competent court of the Contracting Party in whose territory the investment was made or some of the above indicated arbitral tribunals, the choice of one or the other procedure shall be final;
5. Arbitral awards shall be final and binding on the parties to the dispute and shall be executed in accordance with domestic law of the Contracting Party in whose territory the investment was made.
6. The Contracting Parties shall refrain from addressing, through diplomatic channels, related to disputes submitted to judicial process or international arbitration in accordance with the provisions of this article, matters until the proceedings are completed, except in the case where the other party to the dispute has not complied with the court decision or the decision of the Arbitral Tribunal, under the terms established in the respective decision or decision.

ARTICLE X SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES.

1. The Disputes between the Contracting Parties concerning the interpretation and application of this Agreement shall be settled, insofar as possible, through direct negotiations.
2. If not reached an understanding within six months from the date of notification of the dispute, either Contracting Party may submit it to an ad-hoc Arbitral Tribunal in accordance with the provisions of this 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 thirty days of the appointment of the last of them, elect a third member who shall be a national of a third State, who will chair the Tribunal. The appointment of the President must be approved by the Contracting Parties within thirty days from the date of his nomination.
4. If, within the time limits set out in paragraph 3 of this article, has not made the appointment, or has not been granted the required approval, either Contracting Party may request the President of the International Court of Justice to make the appointment . If the President of the International Court of Justice is prevented from acting or if he is a national of either Contracting Party, the Vice President shall make the appointment, and if the latter is prevented from doing so or is a national of either Party Contracting, Judge of the Court who followeth in seniority who is not a national of either Contracting Party shall make the appointment.
5. The President of the Tribunal shall be a national of a third State with which both Contracting Parties maintain diplomatic relations as well.
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 Tribunal shall decide by majority vote and shall determine its own procedural rules.
7. Each of the Contracting Parties shall bear the cost of the respective arbitrator and those of its representation in the arbitration process. The expenses of the Chairman and the remaining costs of the proceedings shall be borne equally by the Contracting Parties unless agreed otherwise.
8. The decisions of the Tribunal shall be final and binding on you loved Contracting Parties.

ARTICLE XI. CONSULTATIONS.

The Contracting Parties shall consult on any matter relating to the application or interpretation of this Agreement.

ARTICLE XII. FINAL PROVISIONS.

1. The Contracting Parties shall notify each other the fulfillment of constitutional requirements for the entry into force of this Agreement. The Agreement shall enter into force sixty days after the date of the last notification.

2. This Agreement shall remain in force for a period of ten years and thereafter it indefinitely. After ten years, the Agreement may be terminated at any time by any Contracting Party, with notice of twelve months, communicated through diplomatic channels.
3. With respect to investments made prior to the date on which cash is come to the notice of termination of this Agreement, its provisions shall remain in force for a further period of ten years from that date.
Made in Cartagena de Indias, Republic of Colombia, on the twenty (22) days of January 2000 in two identical copies in Castilian language, both being equally authentic.
For the Government of the Republic of Colombia, Martha Lucia Ramirez
Rincon.
Minister of Foreign Trade.
For the Government of the Republic of Chile, Juan Gabriel Valdes Soublette

Foreign Minister.

PROTOCOL Upon 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 are part part of that Agreement.
Ad. Article I.
Notwithstanding in paragraph 2 of this article, loans are not considered investment.
Ad. Article III.
1. Nothing in this Agreement shall oblige either Contracting Party to protect investments made with capital or assets in accordance with the laws of each Contracting Party is determined to come from criminal activities.
2. The provisions of this Agreement shall not apply to tax matters.
Ad. Article V.
1. The capital invested may be transferred only after one year since entering the territory of the Contracting Party, party unless this legislation provides for a more favorable treatment.
2. A transfer shall be deemed made "without delay" when it was made within the time normally necessary for compliance with transfer formalities required by the law of the Contracting Party. This period shall not exceed that generally accepted practices in international commercial banks.
3. Nothing in this Agreement shall be construed to prevent a Contracting Party from adopting or maintaining measures that restrict transfers where the Party experiences serious difficulties in their balance of payments, or threat thereof, and such restrictions are consistent with the agreement of the International Monetary Fund, its annexes and amendments ratified by each party.
Made in Cartagena de Indias, Republic of Colombia, on the twenty (22) days of January 2000 in two identical copies in Castilian language, both being equally authentic.
For the Government of the Republic of Colombia.
Martha Lucia Ramirez de Rincón.
Minister of Foreign Trade.
For the Government of the Republic of Chile, Juan Gabriel Valdes
Soublette.
Foreign Minister. "
EXECUTIVE BRANCH PUBLIC POWER

PRESIDENCY OF THE REPUBLIC Santa Fe de Bogota, DC, April 11, 1999. Approved
. Submit to the consideration of the honorable National Congress, for constitutional purposes.

Andres Pastrana Minister of Foreign Affairs, Guillermo Fernandez de Soto
. DECREES
:

ARTICLE 1o. To 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, on 22 January 2000 and swaps explanatory notes of 22 January 2000 and 9 and 30 March 2000.
Article 2.
. In accordance with the provisions of article 1. 7a Act 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 Swaps Explanatory notes dated 22 January 2000 and 9 and 30 March 2000, that article 1. of this law is passed, they will force the country from the date the international link respe cts of them are perfect.

ARTICLE 3. This law applies from the date of publication.
The President of the honorable Senate,
MARIO URIBE ESCOBAR.
The Secretary General of the honorable Senate of the Republic, Manuel Enríquez Rosero
.
The President of the honorable House of Representatives,
BASILIO VILLAMIZAR TRUJILLO.
The Secretary General of the honorable House of Representatives, ANGELINO
LIZCANO RIVERA.

REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
transmittal and enforcement.
Run, after review by the Constitutional Court, pursuant to Article 241-10 of the Constitution.
Given in Bogotá, DC, on July 30, 2001.

Andres Pastrana Minister of Foreign Affairs,
Guillermo Fernandez de Soto.
The Minister of Foreign Trade,
MARTHA RAMIREZ LUCIA CORNER.


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