Through Which The "agreement Between The Republic Of Colombia And The Kingdom Of Spain For The Promotion And Reciprocal Protection Of Investments" Approved, Made And Signed In Bogotá, Dc, On March 31, 2005

Original Language Title: Por medio de la cual se aprueba el "Acuerdo entre la República de Colombia y el Reino de España para la promoción y protección recíproca de inversiones", hecho y firmado en Bogotá, D. C., el 31 de marzo de 2005

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
ACT 1069 2006
(July 31)
Official Gazette No. 46346 of July 31, 2006 CONGRESS OF THE REPUBLIC

Through which the "Agreement between the Republic of Colombia approved and the Kingdom of Spain for the promotion and reciprocal protection of investments, "made and signed in Bogotá, DC, March 31, 2005. Summary

Term Notes
THE CONGRESS OF COLOMBIA
having regard to the text of the "Agreement between the Republic of Colombia and the Kingdom of Spain for the promotion and reciprocal protection of investments," made and signed in Bogotá, DC, on March 31, 2005 , which literally says:
(to be transliterated: photocopy of the full text of that instrument is attached).
AGREEMENT BETWEEN THE REPUBLIC OF COLOMBIA AND THE KINGDOM OF SPAIN FOR THE PROMOTION AND MUTUAL PROTECTION OF INVESTMENTS.

PREAMBLE The Republic of Colombia and the Kingdom of Spain, hereinafter "the Contracting Parties"
Desiring to intensify economic cooperation to the mutual benefit of both Contracting Parties.
Intending to create favorable conditions for investments made by investors of each Contracting Party in the territory of the other, and
Recognizing that the promotion and protection of investments under this Agreement stimulate initiatives in this field
have agreed as follows: ARTICLE

1. DEFINITIONS.
For the purposes of this Agreement,
1. By "investor" means any natural person or any legal entity of one of the Contracting Parties made or make investments in the territory of the other Contracting Party.
A) "natural person" means any one who has the nationality of one of the Contracting Parties in accordance with their legislation;
B) "legal person" means any company or other legal entity duly incorporated or organized under the laws of that Contracting Party and having its registered office in the territory of that same Contracting Party, such as companies means anonymous, collective or business associations.
2. The term "investment" is called all sorts of assets of an economic nature that have been invested by investors of one Contracting Party in the territory of the other Contracting Party in accordance with the legislation of the latter including, in particular, but not exclusively, the following:
a) ownership of movable and immovable property and other real rights such as mortgages, liens, usufructs and similar rights;
B) shares, securities, bonds and any other form of participation in an economic involvement in companies;
C) credit rights and any other contractual performance having an economic value and is linked to an investment. Without prejudice to the rights and obligations of, are excluded from this definition:
i. External credit operations that do not comply with the domestic law of each Contracting Party;
Ii. Public debt operations;
Iii. claims to money derived exclusively from:
(a) commercial contracts for the sale of goods or services by a national or enterprise in the territory of a Contracting Party to an enterprise in the territory of the other Contracting Party;
or (b) the granting of credit in connection with a commercial transaction, whose maturity is less than three years, as trade financing.
D) Industrial property rights and intellectual property, technical processes (know-how) and goodwill (good-will);
E) concessions conferred by law, by an administrative act or under contract, including concessions to explore, cultivate, extract or exploit natural resources.
The investments made in the territory of a Contracting Party by a company of that same Contracting Party, owned or controlled, in accordance with the law of the Party receiving the investment by investors of the other Contracting Party, also recent investments made by investors provided they are made in accordance with the laws of the first Contracting Party shall be considered.
No change in how they are invested or reinvested assets affect their character as investments provided that such modification is made in accordance with the domestic law of the legislation of the Contracting Party in whose territory the investment has declared .
3. By "investment income" amounts produced by an investment they are understood and, particularly, though not exclusively, profits, dividends, interest, capital gains, royalties and fees.

4. The term "territory" designates the land territory, internal waters, the sea territori to and air of each of the Contracting Parties and the exclusive economic zone space and continental shelf extending beyond the limit of the territorial sea of ​​each Contracting Parties which these have or may have jurisdiction and / or sovereign rights in accordance with the respective legislation and international law.
ARTICLE 2.

PROMOTION AND ADMISSION OF INVESTMENTS.
1. Each Contracting Party shall promote in its territory, as far as possible, investments by investors of the other Contracting Party. Each Contracting Party shall admit such investments in accordance with its laws.
2. When a Contracting Party has admitted an investment in its territory accord, in accordance with its laws, the necessary permits in connection with such an investment and with the completion of licensing agreements, technical, commercial or administrative assistance. Each Contracting Party shall in accordance with its laws, whenever necessary, the permits required in connection with the activities of consultants or qualified personnel, whatever their nationality.
3. Investments made by investors of one Contracting Party in the territory of the other Contracting Party shall receive fair and equitable treatment and shall enjoy full protection and security, not to hinder in any way impair by arbitrary or discriminatory measures the management, maintenance, use, enjoyment and sale or liquidation of such investments.


ARTICLE 3. NATIONAL TREATMENT AND MOST FAVOURED NATION CLAUSE.
1. Each Contracting Party shall in its territory to investments of investors of the other Contracting Party treatment no less favorable than that accorded, in like circumstances, to investments of its own investors or investments of investors of any third state, which is more favorable to the investor.
2. Both Contracting Parties shall accord to investors of the other Contracting Party, as regards management, maintenance, use, enjoyment and sale or, where appropriate, liquidation of investments made in its territory, treatment no less favorable than that accorded in like circumstances, to its own investors or investors of any third State, whichever is more favorable to the investor.
3. The treatment granted under paragraphs 1 and 2 of this Article shall not be construed to require either Contracting Party to extend to investors of the other Contracting Party and their investments the benefit of any treatment, preference or privilege resulting from its association or participation, present or future, in an area of ​​free trade, customs, economic or monetary union or any other form of regional economic organiz ation or similar international agreement.
ARTICLE 4.

nationalization and expropriation.

1. Investments of investors of a Contracting Party in the territory of the other Contracting Party shall not be subject to nationalization, expropriation or any other measure having similar effects (hereinafter "expropriation") except for reasons of public utility or social interest, in accordance with to due process, non-discriminatory and accompanied by payment of prompt, adequate and effective compensation manner.
2. Compensation shall be equivalent to the fair market value of the expropriated investment immediately before taking the measure of expropriation or before the imminence of it became public knowledge, whichever comes first (hereinafter "valuation date").
3. The fair market value is calculated in a freely convertible currency at the exchange rate prevailing in the market for that currency on the valuation date. Compensation shall include interest at a commercial rate established in accordance with market criteria for that currency from the date of expropriation until the date of payment. The compensation shall be paid without undue delay, be effectively realizable and freely transferable.
4. The affected investor shall be entitled, in accordance with the law of the Contracting Party making the expropriation, to prompt review, by the judicial or other competent and independent authority of that Contracting Party, of its case to determine whether the expropriation and the valuation of its investment have been adopted in accordance with the principles set out in this article.

5. If a Contracting Party expropriates the assets of a company which is incorporated in its territory in accordance with its legislation and in which there is participation by investors of the other Contracting Party, the first Contracting Party shall ensure that the provisions of this Article shall apply so that such investors ensure prompt, adequate and effective compensation.
6. Contracting Parties may establish, in accordance with the law and for reasons of public utility or social interest, monopolies which deprive an investor to develop an economic activity. The investor will receive prompt, adequate and effective compensation, under the conditions provided for in this article.
7. The Contracting Parties confirm that issuance of compulsory licenses in developing the provisions of the TRIPS Agreement of the WTO can not be questioned under the provisions of this article.


ARTICLE 5. COMPENSATION FOR LOSSES.

Investors 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, insurrection, riot or other similar events, shall as regards restitution , indemnification, compensation or other settlement, the same treatment as the latter Contracting Party grants to its own investors or the treatment accorded by virtue of the Most Favoured Nation clause.


ARTICLE 6. TRANSFERS.

1. Each Contracting Party shall guarantee to investors of the other Contracting Party the free transfer of all payments relating to their investments, particularly, but not exclusively, the following:
a) the initial capital and additional sums necessary for the maintenance, expansion and development of the investment;
B) investment income, as have been defined in Article 1;
C) the necessary funds for repayment of loans related to an investment;
D) compensation as provided for in Articles 4 and 5;
E) proceeds from the sale or total or partial liquidation of an investment;
F) wages and other remuneration received by staff engaged from abroad in connection with an investment;
G) payments resulting from the settlement of disputes.
2. Transfers to which this Agreement shall be effected without delay or restrictions, in accordance with the practices of international financial centers. In particular, it should not take more than three months from the date on which the investor has duly submitted the necessary to effect the transfer until such time as the transfer is actually made. Therefore, each Contracting Party undertakes to comply with the necessary formalities for transfer including those relating to information and buying currency before the aforementioned term.
3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, each Contracting Party may delay or prevent a transfer through, non-discriminatory and equitable good faith application of measures:
a) to protect the rights of creditors;
B) In connection with criminal offenses and orders or judgments in administrative and judicial procedures pro;
This, provided that such measures and their implementation are not used as a means of circumventing the commitments or obligations of the Contracting Party under this Article.
4. Notwithstanding paragraphs 1 and 2 of this article, in circumstances of macroeconomic imbalances that seriously affect the balance of payments or threat that may affect it, the Contracting Parties may temporarily restrict transfers provided that such restrictions are compatible or are issued in accordance with IMF agreements or apply to this request and establish an equitable, non-discriminatory and in good faith.


ITEM 7. OTHER PROVISIONS.

1. If the laws of one Contracting Party or of the obligations of international law than under this Agreement, current or future, between the Parties, whether general or special regulations under which must be granted to investments by investors of the other Contracting Party a more favorable treatment than that provided in this Agreement, such regulation shall prevail over this Agreement, as soon as more favorable.

2. The more favorable than those of this Agreement which have been agreed to by one of the Contracting Parties with investors of the other Contracting Party shall not be affected by this Agreement conditions.
3. Nothing in this Agreement shall affect the provisions in international treaties governing intellectual property rights in force at the time of signing.


ARTICLE 8 Subrogation.

1. If a Contracting Party or its designated agency makes a payment under a contract of insurance or guarantee granted against non-commercial risks concerning an investment of any of its investors in the territory of the other Contracting Party, the latter Contracting Party recognize the subrogation of any right or title of such investor to the former Contracting Party or its designated agency and the right of the former Contracting Party or its designated to exercise, under the surrogacy agency, any right or title the same as its previous owner. This subrogation will enable the former Contracting Party or its designated agency be direct beneficiaries of all types of compensation payments or compensation to those who might be entitled the initial investor.
2. Where a Contracting Party or authorized by this agency is subrogated to the rights of such investor investor you may not claim their rights and benefits from the other Contracting Pa rte, unless authorized by the former Contracting Party or the approved body.


ARTICLE 9 SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES.

1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall be settled, as far as possible through diplomatic channels.
2. If the dispute can not be thus settled within six months from the start of negotiations will be submitted upon request of either Contracting Party, to an arbitration tribunal.
3. The arbitral tribunal shall be constituted as follows: each Contracting Party shall appoint one arbitrator and these two arbitrators shall elect a citizen of a third State with which both Contracting Parties maintain diplomatic relations, as president. The arbitrators shall be appointed within three months and the president within five months from the date on which either Contracting Party has informed the other Contracting Party of its intention to submit the dispute to an arbitration tribunal.
4. If within the periods specified in paragraph 3 of this article would not have made 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 necessary appointments. If the President of the International Court of Justice is not prevented from acting or is a national of either Contracting Party, the Vice President will be invited to make the necessary appointments. If the Vice President could not perform that function or is a national of either Contracting Party the appointments shall be made by the member of the International Court of Justice next in seniority who is not a national of any of the Contracting Parties.
5. The arbitral tribunal shall decide on the basis of the provisions of this Agreement and the generally accepted principles of international law.
6. Unless the Contracting Parties decide otherwise, the tribunal shall determine its own procedure.
7. The tribunal shall decide by majority vote and shall be final and binding on both Contracting Parties.
8. Each Contracting Party shall bear the expenses of the arbitrator appointed by it and its representation in the arbitration proceedings. Other expenses, including the President, shall be borne equally by both Contracting Parties.


ARTICLE 10. DISPUTES BETWEEN A CONTRACTING PARTY AND INVESTORS OF THE OTHER CONTRACTING PARTY.

1. In the case of administrative acts, to submit a claim to the internal forum or arbitration under this Section will be essential previously exhausted administrative remedies when the law of the Party so requires.

2. Any dispute concerning investments arising between a Contracting Party and an investor of the other Contracting Party regarding matters covered by this Agreement shall be notified in writing, including a detailed information, by the investor to the host Contracting Party the investment. As far as possible, the parties shall endeavor to settle these differences by mutual agreement.
3. If the dispute can not be settled in this way within six months from the date of written notification referred to in paragraph 2, the dispute may, at the option of the investor, to:
a) the competent courts of the Contracting Party in whose territory the investment was made;
or b) an ad hoc arbitration tribunal established under the Arbitration Rules of the United Nations Commission for International Trade Law; or
c) the International Centre for Settlement of Investment Disputes (ICSID) created by the "Convention on Settlement of Investment Disputes between States and Nationals of Other States", opened for signature in Washington on 18 March 1965, when each State party to this Agreement has acceded to that. Should one of the Contracting Parties is not a Contracting State to the said Convention, the dispute may be resolved under the Additional Facility for the Administration of Conciliation, Arbitration and made by the ICSID Secretariat
4. Whenever the period provided for in paragraph 3 has elapsed and that the disputing investor has notified 90 days' written notice to the Contracting Party of its intention to submit the claim to arbitration, the investor may submit a claim to arbitration.
The notification under this paragraph will base the claim that the Contracting Party has breached an obligation under this Agreement and that the investor has suffered losses or damages under or arising out of rape. The notification shall specify the name and address of the claimant investor, the provisions of the Agreement that it considers are violated, the facts and the estimated value of the damages and compensation.
5. The investor may not make a claim if it has been more than 3 years from the date on which he became aware or should have been aware of the alleged violation of this Agreement and any loss or damage suffered.
Without prejudice to the provisions in paragraph 1 of this Article, in the case of administrative acts, the 3 years that this paragraph to be counted from such acts are considered firm or definitive.
6. Each Contracting Party gives its irrevocable advance consent for any dispute of this nature can be submitted to any of the arbitration procedures set forth in subparagraphs b) and c) of paragraph 3 of this article.
7. Within 30 days following the submission of a claim to arbitration by an investor of one Contracting Party, the other Contracting Party may request financial authorities of the Contracting Parties consult with one another if the source of the controversy is a prudential measure equitable, nondiscriminatory and good faith on the financial sector. Consultations will be held for 120 days. If the authorities of both Contracting Parties consider that the origin of the dispute is a non-discriminatory and good faith, fair prudential measure the responsibility of the Contracting Party party to the dispute shall be excluded. For the purposes of this section, the term prudential measures on the financial sector those that are taken to maintain the safety, soundness, integrity or financial responsibility of financial institutions.
8. Once the investor has submitted the dispute to the competent court of the Contracting Party in whose territory would have admitted the investment or some of the aforementioned arbitration proceedings, the choice of either forum shall be final.
9. The arbitration will be based on the provisions of this Agreement, the national law of the Contracting Party in whose territory the investment was made, including rules on conflicts of law, and the rules and generally accepted principles of international law.

10. The Contracting Party that is party to the dispute may not invoke in his defense the fact that the investor under an insurance contract or warranty, has received or will receive indemnification or other compensation for all or part of the losses suffered in accordance with the provisions of Article 8
11. The arbitration decisions shall be final and binding on the parties to the dispute. Each Contracting Party undertakes to execute the decisions in accordance with their national legislation.
12. The Contracting Parties shall refrain from treating through diplomatic channels matters related to disputes and mong a Contracting Party and an investor of the other Contracting Party subject to judicial process or international arbitration in accordance with the provisions of this article, except in which one of the parties to the dispute has not complied with the judgment or award of the arbitral tribunal, under the terms established in the respective decision or award.


ARTICLE 11. SCOPE.

1. This Agreement shall apply to investments made before or after the entry into force, by investors of one Contracting Party in the territory of the other Contracting Party under the laws of the latter. However, it shall not apply to disputes that arose prior to its validity or disputes over events before its entry into force, even if its effects continue after this.
2. Nothing in this Agreement shall oblige either Contracting Party to protect investments made with capital or assets of illicit origin, or be construed to prevent a Party from adopting or maintaining measures aimed at preserving public order.
3. The provisions of this Agreement shall not apply to tax matters.
4. In the event that the investor is a natural person holding the nationality of both Contracting Parties, this Agreement shall apply only with respect to those investments in the territory of the State in which the investor is not exercising so effective nationality.
5. For the purposes of the provisions of the preceding paragraph shall mean state of effective nationality that with which the investor maintains full political ties and has established his habitual residence under the provisions of the Convention on dual citizenship between Spain and Colombia, on June 27, 1979, and its Additional Protocol of 14 September 1998


ARTICLE 12 CONSULTATIONS.

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


ARTICLE 13. ENTRY INTO FORCE, DURATION AND TERMINATION.

1. This Agreement shall enter into force sixty days after the date on which the Contracting Parties have notified each other that the respective constitutional formalities required for the entry into force of international agreements have been fulfilled. It shall remain in force for an initial period of ten years. After the expiry of the initial period of validity, it shall continue in force indefinitely unless terminated by either Contracting Party by written notice to the other Contracting Party. The denunciation shall take effect twelve months after such notification.
2. With respect to investments made prior to the date on which it becomes effective termination of this Agreement, the provisions of the other Articles of this Agreement shall remain in force for a further period of ten years from the date of termination the Agreement.
Done in duplicate in Bogota, DC on March 31, 2005 in Spanish language, both being equally authentic.
For the Republic of Colombia,
CAROLINA BARCO,
Minister of Foreign Affairs.
For the Kingdom of Spain,
Miguel Angel Moratinos, Foreign Minister

and Cooperation. RAMA

PUBLIC POWER EXECUTIVE PRESIDENCY OF THE REPUBLIC
Bogotá, DC, May 4, 2005
Approved. Submit to the consideration of the honorable National Congress for constitutional purposes.
(Sgd.)
The Alvaro Uribe Minister of Foreign Affairs,
(FDO.) CAROLINA Barco Isakson.
DECREES: Article 1.
. To approve the "Agreement between the Republic of Colombia and the Kingdom of Spain for the promotion and reciprocal protection of investments," he made and signed in Bogotá, DC, on March 31, 2005.
Article 2.
. In accordance with the provisions of article 1 of Law 7 of 1944, the "Agreement between the Republic of Colombia and the Kingdom of Spain for the promotion and reciprocal protection of investments," made and signed in Bogotá, DC, 31 March 2005 that article 1 of this law is passed, it will force the country from the date the international link is perfect therefrom.
Article 3o. This law applies from the date of publication.
Given in Bogotá, DC, honorable ... Presented to Congress by the Minister of Foreign Affairs, the Minister of Finance and Minister of Commerce, Industry and Tourism.
The Minister of Foreign Affairs,
CAROLINA BARCO.
The Minister of Finance and Public Credit, Alberto Carrasquilla
.
The Minister of Commerce, Industry and Tourism Jorge Humberto Botero
. RAMA

PUBLIC POWER EXECUTIVE PRESIDENCY OF THE REPUBLIC
Bogotá, DC, May 4, 2005
Approved. Submit to the consideration of the honorable National Congress for constitutional purposes.
(Sgd.)
The Alvaro Uribe Minister of Foreign Affairs,
(FDO.) CAROLINA Barco Isakson.
DECREES: Article 1.
. To approve the "Agreement between the Republic of Colombia and the Kingdom of Spain for the promotion and reciprocal protection of investments," he made and signed in Bogotá, DC, March 31, 2005. Article 2.
. In accordance with the provisions of article 1 of Law 7 of 1944, the "Agreement between the Republic of Colombia and the Kingdom of Spain for the promotion and reciprocal protection of investments," made and signed in Bogotá, DC, 31 March 2005 that article 1 of this law is passed, it will force the country from the date the international link is perfect therefrom.
Article 3o. This law applies from the date of publication.
The President of the honorable Senate,
CLAUDIA BLUM Barberi.
The Secretary General of the honorable Senate,
EMILIO RAMÓN OTERO DAJUD.
The President of the honorable House of Representatives
GALLARDO JULIO E. ARCHBOLD.
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 31, 2006.

The Alvaro Uribe Foreign Minister, Carolina Barco Isakson
.


Related Laws